Arcosa Inc. announced results for the first quarter ended March 31, 2019. The company is reporting that revenues increased 16% to $410.9 million. Net income increased 25% to $27.7 million; while adjusted net income increased 30% to $28.8 million, excluding non-routine items related to the ACG Materials acquisition.
Construction Products revenues increased 51% to $106.0 million in the first quarter, benefitting from a full quarter of operating results from the December 2018 acquisition of ACG Materials. Operating profit for the first quarter was $11.3 million compared to $12.4 million in the same period in 2018. Adjusting for the write-up of acquired ACG Materials inventory, first quarter Adjusted Segment EBITDA was $21.5 million, $4.0 million higher than a year ago. The increase was driven by the ACG acquisition.
“Arcosa’s first quarter results were better than our expectations,” said Antonio Carrillo, president and chief executive officer. “This strong start to 2019 supports our confidence in our full-year guidance. We achieved year-over-year revenue growth in each of our business segments, benefitting from organic initiatives and the addition of ACG Materials into our Construction Products Group. ACG’s first quarter results were in line with our expectations, and we continue to consider bolt-on acquisitions in the aggregates and specialty materials markets.
“We continued to execute effectively on our stage one priorities: growing Construction Products, improving margins in Energy Equipment, expanding our Transportation Products business as markets continue to recover, and operating a lean corporate structure,” Carrillo continued.
“Our strong start to the year and confidence in current business trends support our expectations for substantial growth in 2019. We reaffirm our full-year revenue and adjusted EBITDA guidance ranges of $1.70 billion to $1.80 billion and $215 million to $225 million, respectively. The mid-point represents 18% year-over-year adjusted EBITDA growth in 2019, after absorbing additional standalone company costs and initial pricing on a long-term components contract,” Carrillo noted.