Arcosa, Inc. Begins Trading on New York Stock Exchange Under ACA Ticker Symbol (11/01/18)
DALLAS--(BUSINESS WIRE)--Arcosa, Inc. (NYSE: ACA) (“Arcosa”), a growth-oriented manufacturer of infrastructure-related products and services, today marks its first day as an independent public company following its successful separation from Trinity Industries, Inc. The spin-off was effected through a pro rata distribution of all outstanding Arcosa shares to Trinity’s stockholders and is intended to qualify as a tax free distribution for federal income tax purposes.
Regular-way trading on the New York Stock Exchange begins today under the ACA ticker symbol
Arcosa President and CEO, Antonio Carrillo, commented, “Arcosa is entering the public markets as a strong, independent company with established businesses serving the construction, energy, and transportation industries. A healthy, nearly-debt free balance sheet and strong operating cash flow provide us with significant resources to grow both organically and through disciplined acquisitions.
“Our stage one priorities are to grow our construction products businesses, improve margins in our energy equipment segment, and expand our transportation products businesses as our key markets recover. In particular, we expect the emerging barge recovery to give us positive momentum moving into 2019.”
Mr. Carrillo concluded, “Finally, we are building a new company. On this journey, we are committed to establishing credibility with our many stakeholders, including the investment community, our customers and suppliers, our team members throughout the organization, and the communities in which we operate. We look forward to keeping everyone informed of our progress.”
Reaffirms Fiscal Year 2019 Earnings Guidance
At its Investor Day on October 4, 2018, Arcosa established financial guidance for the fiscal year ending December 31, 2019, providing forecasted ranges for revenue and EBITDA. Today, Arcosa is reaffirming its annual revenue guidance of between $1.55 and $1.65 billion and its EBITDA guidance of between $180 and $195 million.
As discussed at Investor Day, the Company’s fiscal year 2019 guidance includes:
Positives from 2018: Emerging barge recovery positively impacting the Transportation Products segment; margin improvement in the Energy Equipment segment; and continued strength in the Construction Products segment
Challenges from 2018: Between $10 and $15 million of forecasted incremental standalone public company costs and lower anticipated margins in the steel components business due to lower 2019 contractual pricing
Refer to the supplemental table that accompanies this release for a reconciliation of projected net income to EBITDA for 2019.
Executes $400 million unsecured five-year revolving credit facility
In conjunction with its establishment as a standalone company, Arcosa executed a $400 million unsecured credit facility with a maturity date of November 2023. The facility is available for general corporate purposes and includes customary terms and conditions.
“With robust operating cash-flow generation and a strong balance sheet, Arcosa is well-positioned to execute on our strategy to grow in attractive markets where we can achieve sustainable competitive advantages, reduce the complexity and cyclicality of the overall business, and improve our return on invested capital,” stated Scott Beasley, Arcosa’s CFO.
Arcosa, Inc., headquartered in Dallas, Texas, is a growth-oriented manufacturer of infrastructure-related products and services with leading positions in construction, energy, and transportation markets. Arcosa reports its financial results in three principal business segments: the Construction Products Group, the Energy Equipment Group, and the Transportation Products Group. For more information, visit www.arcosa.com. https://www.businesswire.com/news/home/20181101005133/en/Arcosa-Begins-Trading-New-York-Stock-Exchange