Arcosa(US:ACA)2024-10-31 15:33Revenue and Financial Performance - Revenues for the three and nine months ended September 30, 2024 increased by 8.2% to $640.4 million and 10.3% to $1,903.7 million, respectively, compared to the same periods in 2023[79]. - Operating profit for the three months ended September 30, 2024 decreased by $14.6 million to $33.8 million, primarily due to the loss on the sale of the steel components business[79]. - Operating profit decreased by 30.2% to $33.8 million for the three months ended September 30, 2024, primarily due to a $23.0 million loss on the sale of the steel components business[90]. - Operating profit for the nine months ended September 30, 2024, decreased by 4.9% to $154.4 million, primarily due to a $21.8 million gain on land sale in the prior year[90]. - Revenues from the Engineered Structures segment increased by 25.6% to $279.4 million for the three months ended September 30, 2024, driven by higher volumes in utility structures and wind towers[82]. - Total revenues for the Construction Products segment increased by 1.4% to $265.9 million for the three months ended September 30, 2024, with organic revenues slightly down[96]. Backlog and Orders - The backlog for Engineered Structures as of September 30, 2024 was $1,264.6 million, with approximately 20% expected to be delivered during 2024[81]. - Approximately 32% of the unsatisfied performance obligations for inland barges in the Transportation Products segment are expected to be delivered during 2024[81]. - The backlog for utility, wind, and related structures was $1,264.6 million as of September 30, 2024, with approximately 20% expected to be delivered during 2024[103]. - The company received $75 million in orders for tank and hopper barges during the third quarter of 2024, indicating a recovery in the barge business[76]. Expenses and Costs - Selling, general, and administrative expenses increased by 34.4% for the three months ended September 30, 2024, as a percentage of revenues, these expenses were 12.9%[79]. - Selling, general, and administrative expenses rose by 11.1% to $28.0 million for the three months ended September 30, 2024, due to costs from recent acquisitions[97]. - Selling, general, and administrative expenses increased by 54.5% for the three months ended September 30, 2024, primarily due to costs from the acquired Ameron business[101]. - Corporate overhead costs increased by 70.1% to $25.0 million for the three months ended September 30, 2024, mainly due to higher acquisition and divestiture-related expenses[109]. - Cost of revenues decreased by 4.4% to $200.0 million for the three months ended September 30, 2024, as a result of lower organic volumes and operational improvements[97]. Tax and Compliance - The effective tax rate for the three months ended September 30, 2024 was 13.1%, down from 17.4% in the same period of 2023[79]. - The effective tax rate for the three months ended September 30, 2024, was 13.1%, down from 17.4% in the same period of 2023, primarily due to AMP tax credits[94]. - The company is in compliance with all financial covenants related to its revolving credit facility as of September 30, 2024[113]. Acquisitions and Divestitures - The company completed the acquisition of Stavola Holding Corporation for $1.2 billion in cash, funded by a $700 million secured term loan and $600 million of senior notes[78]. - The company recognized a loss of $23 million on the sale of its steel components business, which was completed in August 2024[78]. - The company recognized a $23.0 million loss on the sale of the steel components business during the three months ended September 30, 2024[105]. Cash Flow and Capital Expenditures - Cash provided by operating activities was $253.8 million for the nine months ended September 30, 2024, compared to $198.8 million for the same period in 2023[111]. - Net cash required by investing activities was $250.6 million for the nine months ended September 30, 2024, compared to $131.5 million for the same period in 2023[112]. - Proceeds from the sale of businesses amounted to $86.4 million during the nine months ended September 30, 2024, compared to $2.0 million for the same period in 2023[112]. - Capital expenditures for the nine months ended September 30, 2024, were $136.4 million, with full-year expectations of approximately $180 to $195 million[112]. Financing and Debt - The company increased its revolving credit facility from $500.0 million to $600.0 million in August 2023, and further to $700.0 million in August 2024[113]. - As of September 30, 2024, the company had $240.0 million of outstanding loans under its revolving credit facility, an increase of $80.0 million during the nine months ended September 30, 2024[113]. - The company issued $600.0 million of 6.875% senior notes in August 2024, maturing in August 2032[114]. - The new secured term loan facility amounts to $700.0 million, funded on October 1, 2024, with a maturity date of October 1, 2031[114]. - The interest rate for the term loan is based on SOFR plus 2.25% per year[114]. - The company anticipates that existing cash, available liquidity, and cash flow from operations will be sufficient to fund necessary capital expenditures and operating cash requirements for the foreseeable future[114]. - The company plans to make mandatory prepayments from excess cash flow starting with the fiscal year ending December 31, 2025[114]. Dividends and Share Repurchase - A quarterly cash dividend of $0.05 per share was declared in September 2024, scheduled for payment on October 31, 2024[115]. - The company has a remaining authorization of $36.2 million under its share repurchase program as of September 30, 2024[115].