Investor Presentation

March 2020

Forward-Looking Statements

Some statements in this presentation, which are not historical facts, are "forward-looking statements" as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa's estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words "anticipates," "assumes," "believes," "estimates," "expects," "intends," "forecasts," "may," "will," "should," "guidance," "outlook," "strategy," and similar expressions to identify these forward-looking statements.

Forward-looking statements speak only as of the date of this presentation, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management's current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or our present expectations, including but not limited to assumptions, risks and uncertainties regarding achievement of the expected benefits of Arcosa's spin-off from Trinity Industries, Inc. ("Trinity"); tax treatment of the spin-off; failure to successfully integrate Cherry Industries, Inc. ("Cherry"), or failure to achieve the expected benefits of the acquisition; market conditions and customer demand for Arcosa's business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; ability to improve margins; and Arcosa's ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see "Risk Factors" and the "Forward-Looking Statements" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Arcosa's Form 10-K for the year-ended December 31, 2019, and as may be revised and updated by Arcosa's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Non-GAAP Financial Measures

This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations of non-GAAP financial measures to the closest GAAP measure are provided in the Appendix.

Presentation of Financials

The spin-off of the Company by Trinity was completed on November 1, 2018. The Company's financial statements for periods prior to November 1, 2018 were presented on a "carve-out" basis. The carve-out financials of the Company are not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an independent company during the applicable periods.

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How to Find Us

OUR WEBSITE

www.arcosa.com

HEADQUARTERS

Arcosa, Inc.

500 North Akard Street, Suite 400

Dallas, Tx 75201

NYSE TICKER

ACA

INVESTOR CONTACT

InvestorResources@arcosa.com

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Arcosa at a Glance

A new public company with an established operating history and financial strength

$1.74B

$241M

$113M

Revenues

Adjusted EBITDA

Net Income

~6,300

85+

3

Infrastructure-related

Employees

Years of Operating History

Segments

Arcosa separated from its former parent company and

became an independent public company in November 2018

Revenues, Adjusted EBITDA and Net Income are for the fiscal year ended 12/31/19. See Adjusted EBITDA reconciliation in Appendix.

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Arcosa Overview

Provider of infrastructure-related products and solutions positioned for growth

Markets C O N S T R U C T I O N

Revenues

$440M

Adj.Segment

21%

EBITDA

Margin

A G G R E G AT E S

S P E C I A LT Y

M AT E R I A L S

C O N S T R U C T I O N

S I T E S U P P O R T

E N E R G Y

$837M 15%

W I N D T O W E R S

U T I L I T Y

S T R U C T U R E S

S T O R A G E TA N K S

T R A N S P O R TAT I O N

$466M 14%

B A R G E S

C O M P O N E N T S

Revenues and Adjusted Segment EBITDA margin for the fiscal year ended 12/31/2019. See Adjusted Segment EBITDA reconciliation in Appendix.

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Construction Products Segment Overview

P R O D U C T S

K E Y F I G U R E S

R E V E N U E

SPECIALTY

CONSTRUCTION

AGGREGATES

MATERIALS

SITE SUPPORT

74

Natural sand, gravel

Lightweight

Steel & aluminum

and limestone base;

aggregates; specialty

trench shoring

recycled aggregates

milled or processed

products and

materials

systems

As of 12/31/19:

  • Estimated proven and probable aggregate reserves exceeding 930 million tons, excluding Cherry
  • Combined natural aggregates and specialty materials projected average reserve life of at least 57 years

(LTM 12/31/2019)

$440M

Revenue

21%

Adjusted Segment EBITDA

Margin

$30B+

Estimated annual

market size

by product type ($M)

Construction site support

75

(17%)

365

(83%)

Aggregates and specialty materials

In January 2020, the Company acquired Cherry Industries, Inc. ("Cherry"), a leading producer of natural and recycled aggregates in the Houston, Texas market area. Aggregates and Specialty Materials grouped as "Construction Aggregates" in Financials. Construction Site Support classified as "Other". See Adjusted Segment EBITDA reconciliation in Appendix.

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Energy Equipment Segment Overview

P R O D U C T S

WIND TOWERS

UTILITY STRUCTURES

Storage

RESIDENTIAL/COMMERCIAL/

INDUSTRIAL SCALE & FIELD

AGRICULTURAL

ERECTED STORAGE

STORAGE

K E Y F I G U R E S

(LTM 12/31/2019)

$837M

Revenue

15%

Adjusted Segment EBITDA

Margin

R E V E N U E

by product type ($M)

Storage tanks and other

211

(25%)

626

(75%)

Utility structures and wind towers

$597M Backlog in Utility Structures and Wind Towers as of 12/31/19

See Adjusted Segment EBITDA reconciliation in Appendix. Adjusted Segment EBITDA includes $2.9M of bad debt recovery recorded in 1Q 2019.

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Transportation Products Segment Overview

P R O D U C T S

K E Y F I G U R E S

R E V E N U E

by product type ($M)

TANK BARGES

HOPPER BARGES

FIBERGLASS

COVERS

RAILCAR

INDUSTRIAL &

RAILCAR AXLES

MINING

COUPLING

DEVICES

COMPONENTS

(LTM 12/31/2019)

$466M

Revenue

14%

Adjusted Segment EBITDA

Margin

$5B+

Estimated annual

market size

Barges

172

(37%)

294

(63%)

Components

$347M Backlog in Barges as of 12/31/19

See Adjusted Segment EBITDA reconciliation in Appendix.

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First Year Progress

In 2019, we completed our first full year as a public company and remain encouraged by our progress and focused on the future

Building our new Arcosa culture

Executing well on Stage 1 Priorities introduced at spin-off

  • Entrepreneurial and growth-minded
  • Focused on integrating ESG initiatives into our long-term strategy
  • Performance accountability
  • "We win together"

Grow

Construction

Products

Improve

Energy Equipment margins

Expand

Transportation

Products

  • Completed two large-sized acquisitions, ACG Materials and Cherry, + 3 additional complementary acquisitions to expand regional footprint
  • Grew Adjusted Segment EBITDA margins from 10% in 2018 to 15% in 2019
  • Turning focus to growth in adjacent product lines
  • Ramped up barge facilities to grow revenue ~75% in 2019, with healthy backlog headed into 2020

See Adjusted Segment EBITDA reconciliation in Appendix.

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Operate a flat

✓ Streamlined corporate structure to reduce layers

corporate

structure

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2019 Financial Results

Full Year Adjusted EBITDA increased 29%, driven by organic growth, acquisitions, and operating improvements

Revenues ($M's)

Adjusted EBITDA ($M's)

+19%

267

+29%

1,704

1,737

241

1,462

1,460

197

187

2016

2017

2018

2019

2016

2017

2018

2019

Adjusted Net Income ($M's)

Adjusted EBITDA Margin (%)

123

115

+29%

90

89

Adjusted

Reported

113

84

76

15.6

+9%

13.512.813.9

2016

2017

2018

2019

2016

2017

2018

2019

There were no adjustments made to reported Net Income in 2016. See Adjusted EBITDA and Adjusted Net Income reconciliations in Appendix.

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Free Cash Flow Generation

$273 Million of Free Cash Flow in 2019, as our 'cash culture' begins to show progress

We generated $273M of Free Cash Flow in 2019...

Free Cash Flow

Operating Cash Flow Less CapEx, $M's

273

143

8074

2016

2017

2018

2019

Key focus areas include:

  • Process improvements to reduce working capital
  • Incentive changes
  • Disciplined capital expenditure decisions

See Free Cash Flow and Net Debt to Adjusted EBITDA reconciliations in Appendix.

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…leaving us with ~0.5x Net Debt / Adjusted EBITDA after the Cherry acquisition

Net Debt / Adjusted EBITDA

Ratio since spin, end of quarter

Long term target of 2-2.5x

Funded ACG acquisition

Funded Cherry acquisition

with $180M of debt

with $150M of debt

0.5

0.5

0.1

-0.1

-0.1

-0.6

-1.2

Pro-FormaQ4-18

Q1-19

Q2-19

Q3-19

Q4-19 Pro-Forma

At Spin-Off

After

Cherry

Received $200M of

Reduced leverage throughout

cash at spin

2019 with operating cash flow

$298M Cherry Acquisition

Acquisition closed in January and integration is underway; Cherry will be a platform for additional value creation in Construction Products

Expands aggregates business into attractive Houston market, a key gap in our current Texas network

Aggregate mines

Specialty locations

Cherry locations

Houston-area Cherry

locations

Montgomery

Washington

Liberty

Austin

Waller

Harris

Cherry HQ

Chambers

Recycling Facility

Fort Bend

Galveston

Offers compelling competitive advantages

• Largest recycled aggregates producer

in the U.S. with experienced

management team

• Extensive network of strategically

located facilities and reserve positions

• Long-term customer and supplier

relationships

• Access to critical raw material, both

internally and externally sourced

• Technical expertise in concrete

recycling and repurposing

Provides levers for additional value creation

Platform to replicate Cherry's natural

and recycled aggregates in new geographies

Opportunity to leverage legacy natural aggregates expertise in Cherry's market

Stable platform expected to produce high returns on capital through a cycle

Accelerates Arcosa's overall portfolio

Stabilized Facility

Recycling + Stabilized Facility

Brazoria

shift into higher valued Construction Products

$176M Revenues and $37M EBITDA for Cherry as of last 12 months ended 9/30/19. See EBITDA reconciliation in Appendix.

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Barge Recovery Continues

Successfully ramped up barge business to meet the ongoing market recovery, growing revenues ~75% in 2019

Inland Barge business

Backlog Value Trend ($millions)

565

454

416

373

384

364

350

347

319

251

231

198 210

177

120

126

125

110

98

91

  • Backlog up 50% in 2019 and scheduled to deliver in 2020, providing strong production visibility
  • Full year 2019 orders of $411M, representing a book-to-bill ratio of 1.4 times
  • Two consecutive quarters of healthy dry barge orders, showing early signs of a potential dry barge replacement cycle. Inquiries for liquid barges remain steady.
  • Expect higher barge margins in 2020 as the start-up phase of our Louisiana plant is complete and orders taken in a lower pricing environment delivered in 2019

1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19

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2020 Outlook

We are expecting another year of revenue and EBITDA growth, with solid fundamentals across most of our markets and backlogs providing good production visibility

Positives moving into 2020

  • Continued strength in Construction Products, led by healthy infrastructure spending in our key markets
  • Strategic expansion of Cherry's natural and recycled aggregates platform
  • Dry barge recovery, coupled with steady liquid barge demand
  • Robust utility structures demand, driven by grid hardening and reliability initiatives
  • Steady demand for storage tanks in U.S. and Mexico

Challenges moving into 2020

  • Softness in new railcar market
  • Oil and gas markets, served by our aggregate plants
  • Lower wind tower margins

Revenues

+17% to midpoint

Adjusted EBITDA

+19% to midpoint

275 - 300

$M's

1,950 - 2,100

$M's

1,460

1,737

187

241

2018

2019

2020 Guidance

2018

2019

2020 Guidance

See Adjusted EBITDA reconciliation in Appendix. FY 2020 guidance as of 2/26/2020.

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Additional 2020 financial information

Capital Expenditures

Working

Capital1

Corporate costs

Taxes

FY 2020 Guidance

  • $95-$105M,higher than 2019's $85M due to Cherry acquisition and organic growth projects to expand product lines and capacity
  • We expect working capital to be roughly flat for the year, excluding any impact from acquisitions
  • ~$13M per quarter, down slightly as a percentage of total revenues
  • Tax rate of approximately 24%

1 Working capital defined as current assets, less cash, less current liabilities

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Agenda

Company overview

Financial highlights

Long-term vision and capital allocation

ESG update

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Long-Term Vision for Arcosa

Grow

in attractive markets where we can achieve sustainable competitive advantages

Integrate

Improve

Environmental, Social,

Reduce

and Governance

long-term returns

initiatives (ESG) into our

the complexity and

on invested capital

long-term strategy

cyclicality of the overall business

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Capital Allocation Since Spin-Off

Disciplined capital allocation is a key component of advancing our long-term vision

Organic investments

  • $85M of Capital Expenditures in 2019
    • ~$60M Maintenance
    • ~$25M Growth

TTM is trailing twelve months.

Strategic Growth through

Acquisitions

  • $640M of acquisitions since spin

▪

$309M Purchase Price

▪

$298M Purchase Price

▪

9.8x TTM EBITDA multiple

▪

8.0x TTM EBITDA multiple

4 bolt-on acquisitions

▪ $33M combined price

▪ Mid-single digit multiples

Return of capital to shareholders

  • $25M returned to shareholders since spin
    • ~$10M Dividends
    • ~$15M Share repurchases

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Strategic Growth through Acquisitions

We have deployed more than $600M on Construction Products acquisitions since the time of the spin, due to favorable long-term fundamentals and acquisition opportunities

Attractive fundamentals of Aggregates and Specialty Materials

  • Attractive markets with long-term pricing and volume growth; less cyclical than other Arcosa businesses
  • Sustainable competitive advantages, through reserve positions, product portfolio, proprietary processing capabilities, and deep market knowledge
  • Fragmented industry structure with ability to buy small to medium size assets at attractive multiples

Growth of Construction Products segment

Construction Aggregates and Specialty

Materials Revenues

541

$M's

35% CAGR

365

192

213

205

218

152

113

65

2012

2013

2014

2015

2016

2017

2018

2019

2019

▪ Ability to use acquisitions as growth

Pro-

Forma

platforms for organic and bolt-on growth

with

For FY15-19, Construction Aggregates and Specialty Materials Revenues grouped as "Construction Aggregates" in Arcosa's financials; FY12-14 grouped as "Aggregates" in Trinity's

Cherry

financials. 2019 Proforma with Cherry includes Cherry revenues of $176M as of last twelve months ended September 30, 2019.

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Organic investments

We are allocating capex to grow in attractive markets where we can build sustainable competitive advantages

Aggregates and Specialty Materials investments

Reserve acquisitions to expand in current geographies

Greenfield projects to expand into new geographies

Processing capacity expansion

New specialty product development

Utility Structures organic investments

Adjacent product lines

Capacity expansion

Robotic manufacturing investments

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ESG Update

Our Materiality Assessment identified 11 significant topics across our businesses; we plan to publish our initial Sustainability Report for full year 2020

Our

People &

Communities

Our Environment

Our

Products

Employee Health and Safety

Diversity

Talent Management

Community Relations

Energy ManagementProduct Use and Quality

Air Quality

GHG Emissions

Water and Wastewater Management

Land Management

Governance and Business Ethics

Our Materiality Assessment was based primarily on SASB standards, with additional input from stakeholders and other

sustainability standards

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Incentive Compensation Plans

Arcosa's incentive plans align compensation to long-term shareholder value creation while driving accountability to the business level

Short Term

Incentive

Plan (STI)

Long Term

Incentive

Plan (LTI)

Award Type

Cash

Equity: Performance-Based

Restricted Stock Units

(PBRSU)

Equity: Time-Based

Restricted Stock Units

(TBRSU)

Focus

1 year operational and

financial targets

Long term

shareholder value

creation

Performance Objectives

Adjusted EBITDA

Business-specific metrics

(e.g., EBITDA, Working Capital, Margin

Improvement, SE&A Reduction)

Return on Capital

Cumulative EPS

Share Price

Target CEO Pay: 83% at Risk(1)

17%

26%Base

TBRSU

17%

STI

40% PBRSU

  1. Annualized target compensation, excluding one-timesign-on LTI grant upon being named future CEO

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Additional ESG Information

We have a number of initiatives already underway to integrate ESG into our long term strategy

Our

People &

Communities

  • Safety Excellence program rolled out to plants
  • Instituted plan to track and improve diversity
  • Ethics Training and Certification programs
  • Extensive community engagement across our plant locations and corporate offices
  • Talent development program to enhance the skills of our team

Our Environment

  • Instituting sustainability program to track environmental metrics
  • Integrating environmental initiatives into long-term strategy
  • Arcosa headquarters is LEED Gold, Energy Star Certified

Our

Products

  • Leading producer of wind towers for renewable power generation, with over 12,000 towers produced
  • Leading manufacturer of inland barges, which have valuable fuel efficiency advantages over truck and rail
  • Trench shoring products promote worker safety

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Our Products

Arcosa's products are used in important environmentally friendly industries

Wind Energy reduces carbon dioxide emissions

CO2 Emissions Avoided through Wind Energy

Million Metric Tons

201

189

159

126 132

115

97

83

65

50

37

17

22

7

9

11

4

6

2001 02

03

04

05

06

07

08

09

10

11

12

13

14

15

16

17

18

As a leading wind tower manufacturer with over 12,000 towers produced, Arcosa plays an important role in the development of wind power

Sources: American Wind Energy Association, National Waterways Foundation

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Barge transportation is a clean, efficient mode of freight transportation

Tons of CO2 per Million Ton Miles

Barge

15.6

Rail

21.2

Truck

154.1

Ton Miles Traveled per Gallon of Fuel

Barge

647

Rail

477

Truck

145

Arcosa's inland barges play a critical role in the clean and efficient transportation of freight

Appendix

Reconciliation of Consolidated and Combined Adjusted EBITDA and Adjusted Net Income

($'s in millions)

Year Ended

Full Year 2020

(unaudited)

December 31,

Guidance(1)

2016

2017

2018

2019

Low

High

Revenues

$

1,704.0

$1,462.4

$1,460.4

$

1,736.9

$

1,950.0

$

2,100.0

Net income

123.0

89.7

75.7

113.3

118.0

138.0

Add:

Interest expense, net

-

(0.1)

0.5

5.4

9.0

10.0

Provision for income taxes

74.2

40.4

19.3

33.5

37.0

43.0

Depreciation, depletion, and amortization

65.6

65.7

67.6

85.8

105.0

105.0

expense(2)

EBITDA

262.8

195.7

163.1

238.0

269.0

296.0

Add:

Impairment charge

-

-

23.2

-

-

-

Impact of acquisition-related expenses (3)

-

-

0.8

2.0

6.0

4.0

Other, net (income) expense(4)

3.7

1.7

(0.6)

0.7

-

-

Adjusted EBITDA

$

266.5

$

197.4

$

186.5

$

240.7

$

275.0

$

300.0

Adjusted EBITDA Margin

15.6%

13.5%

12.8%

13.9%

14.1%

14.3%

Year Ended

Full Year 2020

December 31,

Guidance

2016

2017

2018

2019

Low

High

Net Income

$

123.0

$

89.7

$

75.7

$

113.3

$

118.0

$

138.0

Impairment charge, net of tax

-

-

14.3

-

-

-

Impact of acquisition-related expenses, net

-

-

0.6

1.5

4.6

3.1

of tax(3)

Impact of U.S. tax reform

-

(6.2)

(1.5)

-

-

-

Adjusted Net Income

$

123.0

$

83.5

$

89.1

$

114.8

$

122.6

$

141.1

GAAP does not define "Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization" ("EBITDA") and it should not be considered as an alternative to earnings measures defined by GAAP, including net income. We use this metric to assess the operating performance of our consolidated business, as a metric for incentive-based compensation, and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value, and we believe this metric also assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, and amortization, which can vary significantly depending on many factors. We adjust consolidated EBITDA for certain non-routine items ("Adjusted EBITDA") to provide a more consistent comparison of earnings performance from period to period, which we also believe assists investors in comparing a company's performance on a consistent basis. "Adjusted EBITDA Margin" is defined as Adjusted EBITDA divided by Revenues.

GAAP does not define "Adjusted Net Income" and it should not be considered as an alternative to earnings measures defined by GAAP, including net income. We use this metric to assess the operating performance of our consolidated business. We adjust net income for certain non-routine items to provide investors with what we believe is a more consistent comparison of earnings performance from period to period.

  1. FY 2020 guidance as of 2/26/2020.
  2. Includes an estimate for the fair value markup of acquired assets for the Full Year 2020 Guidance.
  3. Non-routineexpenses associated with acquisitions, including the cost impact of the fair value markup of acquired inventory and other transaction costs.
  4. Included in Other, net expense was the impact of foreign currency exchange transactions of $1.5 million, $(0.2) million, $2.2 million, and $4.8 million for the years ended December 31, 2019, 2018, 2017, and 2016, respectively.

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Reconciliation of Adjusted Segment EBITDA

($'s in millions)

Three Months Ended

Year Ended

(unaudited)

December 31,

December 31,

2019

2018

2019

2018

Construction Products

Revenues

$

102.2

$

65.6

$

439.7

$

292.3

Operating Profit

7.4

5.1

52.7

50.4

Add: Depreciation, depletion, and amortization expense

10.5

6.5

38.0

21.9

Segment EBITDA

17.9

11.6

90.7

72.3

Add: Impact of the fair value mark up of acquired inventory

-

0.8

1.4

0.8

Adjusted Segment EBITDA

$

17.9

$

12.4

$

92.1

$

73.1

Adjusted Segment EBITDA Margin

17.5 %

18.9 %

20.9 %

25.0 %

Energy Equipment

Revenues

$

213.0

$

207.0

$

836.6

$

780.1

Operating Profit

20.9

16.1

100.7

28.6

Add: Depreciation and amortization expense

6.7

7.1

27.9

29.7

Segment EBITDA

27.6

23.2

128.6

58.3

Add: Impairment charge

-

-

-

23.2

Adjusted Segment EBITDA

$

27.6

$

23.2

$

128.6

$

81.5

Adjusted Segment EBITDA Margin

13.0 %

11.2 %

15.4 %

10.4 %

Transportation Products

Revenues

$

132.3

$

102.1

$

465.7

$

391.4

Operating Profit

14.7

13.2

46.8

48.4

Add: Depreciation and amortization expense

4.3

3.8

16.3

15.5

Segment EBITDA

19.0

17.0

63.1

63.9

Add: Impact of the fair value mark up of acquired inventory

-

-

0.6

-

Adjusted Segment EBITDA

$

19.0

$

17.0

$

63.7

$

63.9

Adjusted Segment EBITDA Margin

14.4 %

16.7 %

13.7 %

16.3 %

Operating Loss - All Other

$

-

$

-

$

-

$

(0.1)

Operating Loss - Corporate

(12.5)

(7.4)

(47.3)

(32.1)

Eliminations

-

(0.3)

-

(0.3)

Add: Corporate depreciation expense

1.1

0.5

3.6

0.5

Adjusted EBITDA

$

53.1

$

45.4

$

240.7

$

186.5

30 / Moving Infrastructure Forward - Investor Presentation, March 2020

"Segment EBITDA" is defined as segment operating profit plus depreciation, depletion, and amortization. GAAP does not define Segment EBITDA and it should not be considered as an alternative to earnings measures defined by GAAP, including segment operating profit. We use this metric to assess the operating performance of our businesses, as a metric for incentive-based compensation, and as a basis for strategic planning and forecasting as we believe that it closely correlates to long-term shareholder value, and we believe this metric also assists investors in comparing a company's performance on a consistent basis without regard to depreciation, depletion, and amortization, which can vary significantly depending on many factors. We adjust Segment EBITDA for certain non-routine items ("Adjusted Segment EBITDA") to provide a more consistent comparison of earnings performance from period to period, which we also believe assists investors in comparing a company's performance on a consistent basis. "Adjusted Segment EBITDA Margin" is defined as Adjusted Segment EBITDA divided by Revenues.

Reconciliation of Free Cash Flow

(unaudited)

GAAP does not define "Free Cash Flow" and it should not be considered as an alternative to cash flow measures defined by GAAP, including cash flow from operating activities. We use this metric to assess the liquidity of our consolidated business. We present this metric for the convenience of investors who use such metrics in their analysis and for shareholders who need to understand the metrics we use to assess performance and to monitor our cash and liquidity positions. We define Free Cash Flow as cash provided by operating activities less capital expenditures.

Year Ended December 31,

2019

2018

2017

2016

(in millions)

Cash Provided by Operating Activities

$

358.8

$

118.5

$

162.0

$

227.8

Capital Expenditures

(85.4)

(44.8)

(82.4)

(84.8)

Free Cash Flow

$

273.4

$

73.7

$

79.6

$

143.0

31

/ Moving Infrastructure Forward - Investor Presentation, March 2020

Reconciliation of Net Debt to Adjusted EBITDA

(unaudited)

The Company uses the term "Net Debt" to determine the extent to which the Company's outstanding debt obligations would be satisfied by its cash and cash equivalents on hand. Management believes this metric is useful to investors in determining the Company's current leverage position following recent significant events subsequent to the reporting period.

  1. Net Debt adjusted to include $200.0 million of cash received from Trinity in connection with the spin-off on November 1, 2018.
  2. Net Debt includes $150.0 million of newly issued debt and $133.0 million of cash paid at closing in connection with the acquisition of Cherry. Adjusted EBITDA includes $37.0 million of Cherry Adjusted EBITDA for the trailing twelve months ended September 30, 2019.

32

/ Moving Infrastructure Forward - Investor Presentation, March 2020

Cherry EBITDA Reconciliation

($'s in millions) (unaudited)

"EBITDA" is defined as Cherry's net income plus interest expense, income taxes, depreciation and amortization. EBITDA is not a calculation based on generally accepted accounting principles. The amounts included in the EBITDA calculation, however, are derived from amounts included in the historical statements of operations data. In addition, EBITDA should not be considered as an alternative to net income or operating income as an indicator of Cherry's operating performance, or as an alternative to operating cash flows as a measure of liquidity. We believe EBITDA assists investors in comparing a company's performance on a consistent basis without regard to depreciation and amortization and other expenses, which can vary significantly depending upon many factors.

For the Trailing Twelve Months Ended September 30, 2019:

Net income

$28.5

Add:

Interest expense

0.1

Provision for income taxes

1.2

Depreciation & amortization expense

7.1

EBITDA

$36.9

33

/ Moving Infrastructure Forward - Investor Presentation, March 2020

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Arcosa Inc. published this content on 10 March 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 March 2020 21:59:03 UTC