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Aug. 5, 2021, 11:49 a.m. EDT

10-Q: ARCOSA, INC.

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(EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. Our MD&A is presented in the following sections: Company Overview Potential Impact of COVID-19 on our Business Executive Overview Results of Operations Liquidity and Capital Resources Recent Accounting Pronouncements Forward-Looking Statements Our MD&A should be read in conjunction with the Consolidated Financial Statements of Arcosa, Inc. and subsidiaries ("Arcosa," "Company," "we," or "our") and related Notes in Part I, Item 1 of this Quarterly Report on Form 10-Q and the Consolidated and Combined Financial Statements and related Notes in Item 8, "Financial Statements and Supplementary Data", of our Annual Report on Form 10-K for the year ended December 31, 2020 ("2020 Annual Report on Form 10-K").

Company Overview







                                                 June 30,      December 31,       June 30,
                                                   2021            2020             2020
                                                               (in millions)
        Engineered Structures:
        Utility, wind, and related structures   $  348.5      $       334.0      $  352.2
        Storage tanks                               30.3               15.6          15.5
        Transportation Products:
        Inland barges                           $  139.4      $       175.5      $  258.7
        


Approximately 93% of the unsatisfied performance obligations for our utility, wind, and related structures in our Engineered Structures segment are expected to be delivered during 2021, with the remainder expected to be delivered during 2022. All of the unsatisfied performance obligations for our storage tanks business in our Engineered Structures segment are expected to be delivered during 2021. Approximately 66% of unsatisfied performance obligations for inland barges in our Transportation Products segment are expected to be delivered during 2021, with the remainder expected to be delivered during 2022.







        Results of Operations
        Overall Summary
        Revenues
                                                               Three Months Ended June 30,                                   Six Months Ended June 30,
                                                       2021                2020                                     2021                2020
                                                           (in millions)                 Percent Change                 (in millions)                 Percent Change
        Construction Products                    $       204.5          $ 148.2                  38.0  %       $      357.7          $ 297.6                  20.2  %
        Engineered Structures                            242.5            222.8                   8.8                 449.5            446.0                   0.8
        Transportation Products                           68.2            128.2                 (46.8)                148.4            245.2                 (39.5)
        Segment Totals before Eliminations               515.2            499.2                   3.2                 955.6            988.8                  (3.4)
        Eliminations                                      (0.1)            (0.7)                                       (0.1)            (2.1)
        Consolidated Total                       $       515.1          $ 498.5                   3.3          $      955.5          $ 986.7                  (3.2)
        


2021 versus 2020







        Operating Costs
                                                               Three Months Ended June 30,                                   Six Months Ended June 30,
                                                       2021                2020                                     2021                2020
                                                           (in millions)                 Percent Change                 (in millions)                 Percent Change
        Construction Products                    $       186.6          $ 123.9                  50.6  %       $      324.0          $ 256.5                  26.3  %
        Engineered Structures                            213.4            201.9                   5.7                 402.9            400.2                   0.7
        Transportation Products                           66.9            112.3                 (40.4)                143.0            215.0                 (33.5)
        Segment Totals before Eliminations and
        Corporate Expenses                               466.9            438.1                   6.6                 869.9            871.7                  (0.2)
        Corporate                                         17.0             13.3                  27.8                  31.5             24.2                  30.2
        Eliminations                                      (0.1)            (0.7)                                       (0.1)            (2.1)
        Consolidated Total                       $       483.8          $ 450.7                   7.3          $      901.3          $ 893.8                   0.8
        


2021 versus 2020







                                                               Three Months Ended June 30,                                    Six Months Ended June 30,
                                                       2021                 2020                                     2021                2020
                                                           (in millions)                  Percent Change                 (in millions)                 Percent Change
        Construction Products                    $         17.9          $  24.3                 (26.3) %       $       33.7          $  41.1                 (18.0) %
        Engineered Structures                              29.1             20.9                  39.2                  46.6             45.8                   1.7
        Transportation Products                             1.3             15.9                 (91.8)                  5.4             30.2                 (82.1)
        Segment Totals before Corporate Expenses           48.3             61.1                 (20.9)                 85.7            117.1                 (26.8)
        Corporate                                         (17.0)           (13.3)                 27.8                 (31.5)           (24.2)                 30.2
        Consolidated Total                       $         31.3          $  47.8                 (34.5)         $       54.2          $  92.9                 (41.7)
        


2021 versus 2020

For a further discussion of revenues, costs, and the operating results of individual segments, see Segment Discussion below.







        Other Income and Expense
        Other, net (income) expense consists of the following items:
                                                       Three Months Ended               Six Months Ended
                                                            June 30,                        June 30,
                                                        2021             2020           2021            2020
                                                                         (in millions)
        Interest income                          $     (0.1)           $ (0.1)     $    (0.1)         $ (0.3)
        Foreign currency exchange transactions         (0.1)              0.2            0.5             0.2
        Other                                          (0.1)             (0.2)          (0.2)           (0.2)
        Other, net (income) expense              $     (0.3)           $ (0.1)     $     0.2          $ (0.3)
        


Income Taxes







        Segment Discussion
        Construction Products
                                                                Three Months Ended June 30,                                   Six Months Ended June 30,
                                                        2021                2020              Percent                2021                2020              Percent
                                                           ($ in millions)                    Change                    ($ in millions)                    Change
        Revenues:
        Aggregates and specialty materials        $       181.5          $ 132.1                  37.4  %       $      316.8          $ 264.2                  19.9  %
        Other                                              23.0             16.1                  42.9                  40.9             33.4                  22.5
        Total revenues                                    204.5            148.2                  38.0                 357.7            297.6                  20.2
        Operating costs:
        Cost of revenues                                  162.7            107.1                  51.9                 281.6            222.1                  26.8
        Selling, general, and administrative
        expenses                                           23.9             16.8                  42.3                  42.4             34.4                  23.3
        Operating profit                          $        17.9          $  24.3                 (26.3)         $       33.7          $  41.1                 (18.0)
        Depreciation, depletion, and
        amortization(1)                           $        22.5          $  13.9                  61.9          $       39.6          $  27.7                  43.0
        


(1) Depreciation, depletion, and amortization are components of operating profit. Table of Contents

Six Months Ended June 30, 2021 versus Six Months Ended June 30, 2020







        . . .
        


Aug 05, 2021

COMTEX_391014815/2041/2021-08-05T11:49:15

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