aca-20230331

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q


(Mark One)
☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2023


			OR
☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _________ to _________ .

Commission File Number 1-38494

Arcosa, Inc.

(Exact name of registrant as specified in its charter)


Delaware		82-5339416
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

500 N. Akard Street, Suite 400
Dallas,	Texas	75201
(Address of principal executive offices)		(Zip Code)

(972) 942-6500

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock ($0.01 par value)	ACA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ☐ Non-accelerated filer ☐

Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

At April 14, 2023, the number of shares of common stock outstanding was 48,436,941.

ARCOSA, INC.

FORM 10-Q

TABLE OF CONTENTS


Caption			Page

PART I
Item 1. Financial Statements			3
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			19
Item 3. Quantitative and Qualitative Disclosures a bout Market Risk			29
Item 4. Controls and Procedures			29

PART II
Item 1. Legal Proceedings			30
Item 1A. Risk Factors			30
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			30
Item 3. Defaults Upon Senior Securities			30
Item 4. Mine Safety Disclosures			30
Item 5. Other Information			30
Item 6. Exhibits			31

SIGNATURES			32

Table of Content s

PART I

Item 1. Financial Statements

Arcosa, Inc. and Subsidiaries

Consolidated Statements of Operations

(unaudited)


	Three Months Ended March 31,
	2023		2022

	(in millions)
Revenues	$	549.2	$	535.8
Operating costs:
Cost of revenues	440.6		439.7
Selling, general, and administrative expenses	62.5		62.6
Gain on disposition of property, plant, equipment, and other assets	(22.6)		(1.2)
Gain on sale of storage tanks business	(6.4)		—

	474.1		501.1
Total operating profit	75.1		34.7

Interest expense	7.1		7.2
Other, net (income) expense	(1.9)		0.9
Income before income taxes	69.9		26.6

Provision for income taxes	14.2		6.4





Net income	$	55.7	$	20.2

Net income per common share:
Basic	$	1.15	$	0.42
Diluted	$	1.14	$	0.41
Weighted average number of shares outstanding:
Basic	48.3		48.2
Diluted	48.8		48.8
Dividends declared per common share	$	0.05	$	0.05

See accompanying Notes to Consolidated Financial Statements.

Table of Content s

Arcosa, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

(unaudited)


	Three Months Ended March 31,
	2023		2022

	(in millions)
Net income	$	55.7	$	20.2
Other comprehensive income (loss):
Derivative financial instruments:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $0.0 and $0.4	0.1		1.6
Reclassification adjustments for (gains) losses included in net income, net of tax expense (benefit) of $0.1 and ($0.1)	(0.4)		0.5
Currency translation adjustment:
Unrealized gains (losses) arising during the period, net of tax expense (benefit) of $0.0 and $0.0	0.1		0.1

	(0.2)		2.2
Comprehensive income	$	55.5	$	22.4

See accompanying Notes to Consolidated Financial Statements.

Table of Content s

Arcosa, Inc. and Subsidiaries

Consolidated Balance Sheets


	March 31, 2023		December 31, 2022
	(unaudited)
	(in millions)
ASSETS
Current assets:
Cash and cash equivalents	$	149.2	$	160.4

Receivables, net of allowance	393.6		334.2

Inventories:
Raw materials and supplies	125.2		126.3
Work in process	70.8		59.2
Finished goods	132.3		130.3
	328.3		315.8

Other	41.8		46.4
Total current assets	912.9		856.8


Property, plant, and equipment, net	1,209.7		1,199.6
Goodwill	976.5		958.5
Intangibles, net	250.9		256.1
Deferred income taxes	9.6		9.6
Other assets	57.5		60.0
	$	3,417.1	$	3,340.6
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	205.8	$	190.7
Accrued liabilities	115.7		121.8
Advance billings	44.0		40.5


Current portion of long-term debt	14.9		14.7
Total current liabilities	380.4		367.7

Debt	535.0		535.9
Deferred income taxes	183.0		175.6
Other liabilities	75.5		77.0
	1,173.9		1,156.2


Stockholders’ equity:

Common stock – 200.0 shares authorized	0.5		0.5
Capital in excess of par value	1,690.3		1,684.1
Retained earnings	568.8		515.5
Accumulated other comprehensive loss	(15.9)		(15.7)
Treasury stock	(0.5)		—
	2,243.2		2,184.4

SEC Form 10-Q filed by Arcosa Inc.