Arcosa(US:ACA)2022-04-28 16:00Financial Performance - Revenues for the three months ended March 31, 2022, increased by 21.7% to $535.8 million, driven by higher revenues in Construction Products and Engineered Structures [77]. - Operating profit for the same period totaled $34.7 million, an increase of $11.8 million from the prior year, with higher profits in Construction Products and Engineered Structures [79]. - Operating profit increased by 51.5% for the three months ended March 31, 2022, compared to the same period in 2021 [86]. - Operating profit for Engineered Structures segment surged by 61.7% to $28.3 million, primarily due to improved margins and higher revenues [94]. - Revenues from Construction Products increased by 38.1% to $211.5 million, primarily due to higher volumes from acquired businesses and strong demand [82]. - Revenues from Engineered Structures rose by 21.0% to $250.5 million, driven by increased pricing across all product lines due to higher steel prices [82]. - Revenues in Transportation Products segment decreased by 8.0% to $73.8 million, with inland barges revenue down 18.8% due to weakened demand [98]. Backlog and Deliveries - As of March 31, 2022, the backlog for Engineered Structures was $421.0 million, with approximately 88% expected to be delivered during 2022 [80]. - The backlog for Transportation Products was $150.6 million, with about 72% expected to be delivered in 2022 [80]. - As of March 31, 2022, the backlog for utility, wind, and related structures was $421.0 million, with 88% expected to be delivered in 2022 [95]. Costs and Expenses - Operating costs increased by 20.0% to $501.1 million, with significant contributions from higher volumes and steel prices [85]. - Selling, general, and administrative expenses increased by 11.0%, but as a percentage of revenue, they decreased to 11.7% from 12.8% year-over-year [79]. - Cost of revenues in Construction Products increased by 42.0% to $168.8 million, driven by higher volumes and inflationary pressures [91]. - Corporate overhead costs decreased by 10.3% to $13.0 million, attributed to lower acquisition-related expenses [101]. Tax and Financial Liabilities - The effective tax rate for the three months ended March 31, 2022, was 24.1%, up from 21.7% in the same period of 2021, primarily due to increased state taxes and disallowed compensation deductions [79]. - The effective tax rate for the three months ended March 31, 2022, was 24.1%, up from 21.7% in the prior year, due to increased foreign adjustments [88]. - The term loan balance as of March 31, 2022 was $144.4 million, with a margin for borrowing set at LIBOR plus 1.75% [104]. - The company recorded a liability of $1.2 million for the fair value of an interest rate swap instrument as of March 31, 2022 [107]. Cash Flow and Investments - Cash flow from operations remains a primary source of liquidity for the company, alongside existing cash balances and credit facilities [102]. - Net cash provided by operating activities for Q1 2022 was $24.5 million, a significant increase from $0.4 million in Q1 2021 [103]. - Net cash required by investing activities was $5.3 million in Q1 2022, down from $10.4 million in Q1 2021 [103]. - Capital expenditures for Q1 2022 totaled $25.9 million, compared to $19.9 million in the same period last year, with full-year expectations of $120 to $140 million [103]. - Proceeds from the sale of property and equipment were $20.6 million in Q1 2022, up from $9.5 million in Q1 2021 [103]. Corporate Actions - The company entered into an agreement to sell its storage tanks business for $275 million in cash, expected to close in the second half of 2022 [77]. - The company declared a quarterly cash dividend of $0.05 per share in March 2022, paid on April 29, 2022 [106]. - The company has a remaining authorization of $40.6 million under its share repurchase program as of March 31, 2022 [106]. - The company believes its existing cash and liquidity will be sufficient to fund necessary capital expenditures and operating cash requirements for the foreseeable future [105]. - The company has deferred $5.4 million in payroll-related taxes under the CARES Act, expected to be paid in 2022 [88].