ACA - Earnings call transcript Q1 2021

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Operator

Good morning, ladies and gentlemen, and welcome to the Arcosa, Inc.

First Quarter 2021 Earnings Conference Call. My name is Mallory, and I will be your conference call coordinator.

As a reminder, today's call is being recorded.

Now I would like to turn the call over to your host, Gail Peck, SVP Finance and Treasurer for Arcosa. Ms. begin. may you Peck,

Gail Peck

will the been the will Thank replay accessing With slides joining Carrillo, at replay year under release. release replay posted of the number closest will available for me Scott GAAP the question-and-answer CEO; tab. everyone. Investor are available appendix yesterday's today's that copy remarks. XXXX and accordance call Reconciliations President first press slide earnings in contain are on for webcast in and presentation. session principles. accounting next morning's the presentation not A with site, press CFO. call. Today's the News measure for the Web today and non-GAAP accepted Beasley, their you morning, site prepared our A included Instructions the the for of one call quarter financial and financial follow to and our of Relations of Good are of measures for prepared included two in presentation A Web slide be this are our Events measures A weeks. comments www.ir.arcosa.com. generally be Antonio have

as the today's that call Let remind me of also you Private Reform XXXX. contains defined forward-looking Act conference Litigation statements by Securities

more Antonio. turn the expected risks now to materially for are I be over statements today. filings forward-looking such from and statements. yesterday, differ on cause subject to company's filed would Please to SEC Forward-looking to to we filed and results our uncertainties, risks the to could and these that actual refer Form the XX-Q release including uncertainties earnings press information like call later

Antonio Carrillo

following Good for quarter recently to and the morning, Arcosa's XXXX, completed updated our joining Thank first us outlook of acquisition Materials. you for Gail. StonePoint you, results and discuss thank

the to continued the Uri the impact drive February. These expectations to from performance speak quarter to challenges our core results in margins. made of reduce portfolio infrastructure investments resilience enhance despite first our Our storm and we've winter financial cyclicality, of related strategic to strength and exceeded and COVID-XX and growth products

X. Turning to Slide

discuss me a key Let few takeaways.

better continues by the The performance. benefited and utility, demand business Our our renewable Within the hardening, throughout drivers businesses expected held Engineered grid quarter, from structures steel from for very Construction the particular, businesses and In given coming were than buildout. order driven increased the fundamental these during activity the cycle remain Products expansions healthy construction construction strong telecom the strong by traffic and rail impacted results investment activity. to the strong demand Structures, be and Transportation segment high wireless quarter. The in for prices.

reaching Arcosa. StonePoint scale reserves new completed team. in growth geographies, a StonePoint asset an construction a the positions platform the of materials market is adding US advances Materials, previously attractive XX the more and cycle demand normalize, steel However, we new barges convert is In pent-up lowest costs. on to at and steps maintain our point will we believe significant its the manufacturing to recovering meantime, prices once that XX of repositioning experienced premier our flexibility, time, years focusing acquisition platform, accelerates April, that start we're managing of In orders. the same the will than and taking leading rail top and for announced of we're and

inorganic, To our and we're that to that return strategic to on robust StonePoint platform. every long seek value particular and organic will for a continue to this end, Our to we meets term our growth portfolio. further requirements opportunities whether and focus continue apply and investment to new project, a term pipeline potential. rigorous street analysis higher evaluate and margin will and be pleased to expand building [Still], short have integrating out higher

our for Our potential. term discuss year we to ESG. Also, we to businesses I our as that published report, commitment must in will full capital opportunities later, the those compete long highest first invest ensure sustainability with underscoring

an of overview our for There to Turning quarter. the results X. Slide is

down expectations. gas million Adjusted our The year-to-year, increased our was negative XX% facilities after of of a storm many was and this winter consistent forecast, over million ahead significantly shut our revenue to was of week. for $X While from with $XX.X impact $X our million even down storm EBITDA natural Uri. costs

to during and update Scott segment the quarter the business. effects over performed to the will helped the construction on and segment Scott? call On you compensate the now the positive better I of storm. performance, expected then for turn us the side, outlook to discuss will our than I return for

Scott Beasley

impacted everyone. good segment winter flat and last $X EBITDA Antonio, by to X% in morning, Segment was to storm you, the roughly million although, storm versus weather to and $X quarter. review start million revenue I'll X winter grew We and recover on dry Products helped million, first results negative another impacts X% given us noteworthy million Construction Slide accomplishment margin from from storm. March the Thank that $XX.X the adjusted Products' February increased $XXX.X EBITDA XX.X% Uri. despite of Construction year, well. estimate EBITDA the our

natural related from higher up in highlights acquisitions, on infrastructure in Let were and me work Volumes discuss bolt business Texas. quarter. organically legacy a aggregates the through by driven few our

first cost and per We XXXX. costs to fuel ton the versus our lower lower drive through operating efficiencies, quarter maintenance of costs continue lower

The be aggregates are the in March pressured headwinds for weather we storm was very but aggregates continues which impact end mix healthy and both nice given across ASP price recycled the Dallas. oil increases excellent. in of and to XXXX, were markets performance in Houston the stronger in overall were to the in of shift lower resulted in market also recovered continue plants a aggregates businesses healthy, were these as improved. We a Margins our QX well to our gas but The in a lower overall few markets, although, business footprint, see and ASP. primary

the now or to businesses impacted encouraged trench nicely above were products two lightweight prepandemic that have levels. and by close very and recovered shoring performing most both aggregates that we're Finally, COVID, are

in Our lightweight prepandemic quarter trench additional the acquisition's businesses in first the aggregates XXXX in closed shoring confidence underlying to We XXXX. quarter April of the in our stability begin first was gives EBITDA roughly us and health The of markets contribution these our provides the flat of was recovery portfolio. on StonePoint with overall will above QX. and so infrastructure business

were X. notably sale Engineered nonoperating $X.X the items the the Those impacted We unplanned larger declined quarter. $XX.X facilities. million that million were in unusual to increased to in by Turning on EBITDA was several of quarter. storm to cost helped Structures was facility bills natural with Adjusted by several were There several million QX. in winter year-over-year gas but in moderately Revenue sequentially $XXX roughly down flat QX a produced Slide by our $X we gain, from bills Uri, expenses approximately most but million.

excellent the operating job to throughout recovering able despite from Our were and meet particularly challenges deliveries an we teams the customer storm for chain, did steel. supply

decline was roughly Our in with line expectations. revenue

We QX months started of drag. March, order took tower to a plant retool larger were production contribute ramp has in towers. to positive near in and plant line off we up the last in full at of after it continue several to wind year that for We EBITDA

our year-over-year contributed on also Mexico utility We improvement the the to but decline. of structures reopening progressive facility, it margin made

has to Our margin continue adjusted adjusted the XX.X% these structures from negatives, of of XX% strong to $XXX for but $XXX.X was to in XX% of year the telecom backlog structures towers, million EBITDA and near with the for those XXXX. lines. across XX% once quarter, expect wind traffic our of increased we and utility, positives healthy across for inquiries end at The million margin range bottom levels remained related and full transmission, wind in the to XX% end XXXX. Demand product combined all

product our United States and the extremely well. lines storage Mexico tank to perform continued Additionally, in

We able driven benefited pass through COVID strong have steel commercial prices demand residential from and higher propane been deurbanization. for have and related tanks, by to also

transportation products Moving XX. on to Slide

from backlog our $XX and orders both components reflect down The that downturns barge will recovery results decreased and margins of to $XXX.X orders, was pressure businesses. to businesses. compressed conversion High led rail EBITDA new million. the utilization both received year-over-year prices be inquiries in Revenue and barge adjusted continue of XX% steel the lower quarter, eventual into confident likely the as dry the although, down market. was Our cyclical million in XX% business in by we are in barge

this of of range to million we demand near on year offering noted planned the prices and and announce eight that on inaugural $XXX notes in not the near last we moderate barge businesses do our difficult fund term. facility In reduced XX. of and $XX note cost attractive and if we early April, idling I'll public of have the recovers steel debt have plans. made pursue to year. As rail components, providing generate disciplined for in barge able Slide our us be the to Louisiana growth near end will decision in of price to unless the positive, Finishing coupon, million withX.XXX% unsecured bond low ratings and closed million the access to the calls, our to structure offering EBITDA to StonePoint We several We our flexibility rate long acquisition. capital the term we an of the we EBITDA strong both were to be received likely financing. the continue $XX this EBITDA expectation term. segment maintain BB, capacity our of senior

full business expect back roughly as I now X.X due expected this the X.X back accounts stands turn had due long winter purchases. call Uri strategic Even of lower partially to term for be the over Following well We debt cash from working steel with to QX, for capital neutral we in flow free our usage will EBITDA adjusted at to times, working storm offering, roughly capital X.X as net than to acquisition higher and QX, more Antonio year. times. outlook. receivable below our the in to on of to to shipments target delayed our

Antonio Carrillo

you, Thank Scott.

Scott our impact first the As exceeded continued the negative results from quarter COVID storm in despite challenges expectations market and our Uri. related winter detailed,

Before that which April, XX. addition our the an Slide StonePoint Slide outlook, turning closed to turn in details term acquisition Please Arcosa. for to was XX important near

XXXX, conference February. has we term in markets our update of our fourth look changed near remainder we view provided towards not the on our of materially the from call As quarter

which in geographies. Texas, new Benefiting products attractive over our US national from segment market, aggregates platform, a largest Strata the infrastructure as in remains our utility and our months, the have Within trends complementary orders markets for continue trends significantly backlogs for traffic about Coast markets. seeing are expanded our and during in construction strong. We new acquisitions to healthy towers through We're quarter, Engineered Products as well Construction as activity excited robust both key Construction the for well in Gulf growth on demand storage our particularly I'm the Products resilient and from the opportunities business. Texas We as the our scale, and wind received our positive. and segment, StonePoint, outlook our steady tanks offerings see Cherry, telecom structures favorable including in demand benefiting rising XX and past and also spending Mexico. adding in Structures

inquiry levels in While a continue experiencing, initiatives. view, hardening passing point of possible. I'm as on investment the will overall as interest elevated grid continued energy, and focused and segment, encouraged by power price remain through this demand renewable reflect we stay increases other which backlog of in reliability prices that the we're steel in From much volumes headwind to

challenges. quarter, impacted Utilization continues transportation the cargo dry discussed for segment improving low last related liquid high while rates our remain market barges. to prices face have we and barge As in steel market demand COVID

quarter, sequentially fourth revenue turning Although, the grew steel be may quarter, year-over-year declined components suggesting this revenue first the market corner. in from the

Slide Transportation should plants know In taking do we factors well. markets, that demand related now a prices have abate. high production base were remember expanded increase our market should our how year, Products at make to a we're financial to the prudently addition, conditions the I to Depressed Products also to manage expect the and business. normalizes. short up recovery COVID strong good future. businesses this steps we these manufacturing rail Transportation on important something growth operational term focused It's and fundamentals nonrail term and to turn well up building Engineered into translate the Construction demand improve. in for In products long the maintain medium are due and businesses Structures flexibility. for the Products once remain positioned and and confident On once our down conditions steel Please XX. that barge our is ramping of And the to noted, customer environment, we in as our We very once market guidance which expenses leverage

full exceed positions range million the guidance about meet $XXX XXXX approximately revenue up completion increasing We're that StonePoint in prior EBITDA adjusted of to on this eight months adjusted our million. between of the and our guidance. $X.XX million, to million EBITDA guidance StonePoint expect $XXX now be $XXX from up year $XXX of We million potentially between also XXXX $XX expect our We Given $X.X be full and ownership. of provides to billion, revenue or for guidance. to forecast billion. X, representing XXXX, EBITDA we're anticipate We Overall, acquisition now contribute $X.XX us from our increasing billion our April results. prior to $X will the

XX. to Turning Slide

published demonstrating brings many the report, no the long we've to highlight we're the respect ways To Finally, there represent week, operate. that prioritizes full ESG ESG term stakeholders XXXX Arcosa while last At the efforts, that which year ESG our I'd in we which And term we is believe in across value strongly like we our to of company. early a strategy. communities the process, in some in our social with and to of higher our sustainability long details which Last and sustainability first From initiative. end, Arcosa year component total our Arcosa, rate Arcosa XXX health environmental, made facilities. our XXXX of achievements marked range disclosure. example, which and XXX, fundamental reduction environmental on first governance and our XX% the in we've the ARC that XX% employee achieved incident members emission a progress than am with take operations safety investments reduction the year, an enhanced reduction our initiatives recordable of culture. intensity safety, promote standpoint, team priority a in our role responsibility. XXXX, impact area, energy pursuing improving this active our plant across in of gas greenhouse I pleased in following for achieved in made ARC safety the launch through

efforts water focused in our we on addition, water reduction XX% In recorded water municipal consumption and intensity to due recycling. conservation

strategy. part focus allocation plays in also capital sustainability Our a our

as we As we prioritize on eye an evaluate as building and expanding well our investments economic returns. with growth sustainability towards businesses,

and recycled our to Arcosa growing unchanged. of remains term closing, is a aggregates Our long generating vision business example In perfect average Slide while operations how can Please turn enhance margins within XX. above returns. our sustainability

while continue markets competitive will growth cyclicality pursue reducing sustainable and of to the Arcosa. we attractive where We in advantages enjoy complexity

questions. like integrating In and addition, for initiatives returns and culture. to call committed social governance we our remain into on improving capital our I Operator, would open environmental, the to

Operator

Our question Instructions] [Operator Oppenheimer. Zaffino first Ian from from

Ian Zaffino

up. we it if through you should of little your as expect? I what to think anticipate. the the help would the you but I've projects so or bill probably early, focus what until doesn't infrastructure far Then believe XXXX. year I to you could as know are guys, Can business. ask bring I a But follow it us well and And wanted funded most discuss were what end, maybe you of through maybe walk a on it's it to hit as timing maybe could you'd if where you, we kind

Antonio Carrillo

we infrastructure business related Engineered optimism showing our Structures bill. the and are not in The gave to guidance that we're the construction and our

And interest the the healthy. the in the backlogs the the so just businesses seeing very or we're markets market, products see are of conditions seeing the health simply very the We where the optimistic and with them that bill. we and are without on as

when so, products Now having you the think if infrastructure most an said can read of bill. I our also bill comes, track you whole across it,

of things cases, projects most to as So materialize, are in to transmission it get across through, organization. would that projects take be come impacts and you But the developed. have to lines very positive to time permitted said, many these

right. you're think I So

would actual midyear where without trickling with 'XX XXXX probably this to the we is to where in think backlogs it and some orders. But overall, -- of start can I down translating positive or we're bill see we our bill. see

medium would the course, bill us Of help in term. the

Ian Zaffino

side, do And magic prices getting to is The a going that of your or think barge orders, And there maybe or translate market telling you? on to better. the is to steel number translated, are Has restart decline that's orders improved. back Madisonville? you also, have customers needs get what kind into then

Antonio Carrillo

let is think a what of But give me don't I there seeing. some number. magic we're So you

good dry cargo side. the are on We inquiries seeing

But important So barge, why is in for of barge you it's such an huge there barge of thing, barges. of cost. is steel a barge is that's the the percentage if steel an that important the and cost represents, interest think total a percentage about an such component

and too that's steel So is this time a rolled very other went pieces question. it's thing I've steel never One these doing believe long been prices in two place. very is, But low high, And seen high that hot we've they only are we're I high -- very, prices. they're the to of a up the sense too for from they're coming every not fast. and at there's why steel

of of today. if look are you at year they than less steel So half were a ago, where prices

to a going get to hand, not because that's our on that buy anything to have at from the on from come other $X,XXX get going have to and again that's to going we're that down the happen. thought their to, ton, going mills steel people away happen steel So customers $XXX one side, are at expectation not

cyclical Having said will movement will there sides happens. a happen. some think it come and needs come matter These It's it are of down. -- that always goes is and so both time. It on just to Is to This see months up be I So down. come optimistic in three trends tell that I better by markets and going cannot we're it going the months? the six in down. to end year, of it direction. you. But will or I'm a

side, our demand the I with customers, agree On from you.

barges. the to you going from they but have they demand money are that's stuff, utilization them. our still very our just XXs. are When business, soil need and They're up. high, our And the save anything really XXs in When rates saying people which oil utilization want. at or of moving grains results or some make prices expect some is want they the but customers really the think the what them to drives customers, are for they look their And I they improved. want own publish be money in on to customers, barge, you on rates

And if demand back. we cycle and improves So secondary a steel point, demand low demand And is the too years, improving, been been years where at several has believe price like talked issue. delayed. as it's over the last will has replacement some we've the few becomes already come there

abate. up things significant once expect pent we demand So these

So and will to question be your prices and short the in long down answer on is but coming there we're term. optimistic demand the there steel

Ian Zaffino

about liquidity? How structure. guess, deals? on there's that? then And kind about more pieces now. I on How are those out you you've you how side, are term, the of incremental any sources would I in also the been kind thinking of you not long troughing One I the with But are about be other kind you acquisitions? outflow And be of thinking just of know may of of some but busy. maybe sort know that capital business thinking are

Scott Beasley

good our times our below sheet. On at the EBITDA inaugural We balance term and That's capital the debt X.X the stood after did we offering. very our offering net adjusted Feel bond to target. acquisition. about structure, long still

By acquisitions we up. do our equally able So the were liquidity. offering, feel if make we to good We headroom come doing liquidity. some disciplined to enhance our feel about they

that And healthy third not expect from to and then the was So have fund question both liquidity flow where very free growth still can issue. an cash acquisitions. flow, of organic part potential we cash is businesses our your

after this balance our even about feel we So very and acquisition, good sheet liquidity.

Operator

And from question will Davidson. next Brent Thielman take DA from our we

Brent Thielman

been respect Antonio, a with from expect or in I to guidance. you Scott versus the couple guess, Has change the what ago? a business of barge there months

Scott Beasley

of EBITDA the eight at to steel closer fourth last selling that I range in be said my like some gave the year. XX% range, higher those since be low slots for and than bottom transportation prices And moderated quarter. million to that and the more stayed end move some that end at in talked, we unfilled $XX to expect to we near high. in remarks, million said production have say, given of optimistic we We prepared the I'd continued we $XX term, wind Likely, weeks steel of the in go of will They now capacity full XX%. do those slots up If about have prices lots. unsold the we'd the range.

So about XXXX. will as continues as of said, improve steel business recover. And for just as not time that prices moderate may calendar feel to It the the be and Antonio we health underlying eventually demand in year will good markets.

Brent Thielman

maybe Should question on could doesn't in we business. It a is still are in I talk but energy any the margins flows that? prices quarters couple second as But be having through. big that guess look structures concerns range effect, the worried plan. the next the on about about is steel of you like

Antonio Carrillo

treat the the let have types we company, businesses you how three the of -- Engineered to steel. On Structures, we explain across and me

is we first not it the So expecting go speculate steel buy up. do to steel. We with thing don't

business. our And so that's not

and customers. making our value on to is stuff providing business good Our

Starting things and made we're having business. to three price a We without market sell one, selling. which we the the business. when simplest So of the have business, steel idea the buy types stock tank an with into we of is

pass because really you that. the prices customer done So that's fast through and have and a careful be adjust them you have to business we've to to that

well. customers. right As that but demand demand very, normal. We've significant business to has performed remarks very continues strong. products, not because during are been his and very in backlog Scott is there's pass the not steel up which sold this to they're mentioned go tanks to And now, able prices is Normally, that for our month winter tanks

market pass allowing through to to to us expect prices the is we be. the and So that continue

So we are not concerned about that.

The we contract of type business towers we business business that barges contract. second to where type have is are tied a buy of steel and wind where

we what of wind So the steel a barge that no steel we a uncertainty know price but steel have then utility prices we is the it have is is a around customers type can and of through through it. for in there order In business, we And business or the our we there pass with And that customer, normally and structures. pass price. buy contracts we for to tower and third lag. also

remainder yearly we as coming margins to continue And year. there customer, the be that of to month range three months, and expect that to I that. type be where for six of the we that a we the here the little stay some depending have And the hiccups seeing related We thousands is case margin, there. think margin Scott of said, within XX% the to months, and the But a to mechanism lower -- there And every expect XX% I orders of on the you're portion of have day. contract, three through can contracts contracts. delay. pricing think are I have is some

healthy through was to going on I the increases. think bottom that the should have But first those price we allow end. us backlogs we recover, and quarter to pass are

prices something long have concerned. very So very we risen we're again, watch. Steel not but fast. It's answer to have

just to top stay have we on it. So of

Operator

We will from our Romero question from next Julio take Sidoti.

Julio Romero

I wanted the cash about quarter. to the ask in flow

to continue progress. payables make Your

think Maybe talk few and next the ended broadly how should over secondly, you about XXs. did trend cash you payable, quarters? base there, payable you days if more what and then in the flow, I could

Scott Beasley

But quarter. $XX was a consumed QX, did we quarter. above cash in our We million flow working of in the EBITDA capital, great We on cash free for expectations. have challenge line it about where expectations. had wasn't with our CapEx in So our

make both of we in what But norms. to terms progress more and winter industry some receivables we call good that did storm we had was right, challenges and You're on then payables inventory. extending related. Part

into QX We shipments we focused and continue end had part and over very capital in the But we working April. be the expect so QX, build and some roughly increases we with to even issue on QX. $XX to we we'll don't capital. year we working neutral and the those drag later the the be collecting where ahead in expect to price said QX. million brought that QX, of in that in So QX, by make course slipped of of inventory back up was those, will related in of expect receivables any QX steel in therefore, QX inventory normalize Part our of

year, of the So be by roughly end we'd neutral. to the back

Julio Romero

for do steel I play the just inquiries those dry scenario -- already. steel I a scenario do couple barge of I to people But and a second orders XX does elevated, talk where asked business, mean, been a guess know inquiries do my question, -- out. XX elevated If about period, convert mean, has up month in trend remains you away? of kind ways remains how barge do how And this barge orders I that where barge go in different the eventually how there? or dry give into conversely could

Antonio Carrillo

at steel received these have prices. we And orders

orders So very we have not do just in, they're large. coming

quarter, that certain receive quarter, saw frequency. the the in we you not for numbers first example, the a The with components, was in second really orders of bad orders. barge Most are barges. But continue for to things

not it's dead. So completely

the as long products healthy, thing to these system. across on of are what business is to And I as think have is And that health the the for are for mentioned What our thing on As customers. us going going they're I best markets watch is our customers do river the you focused moving positive big recovering. before, their is their business. for

you So you them. if making healthy very being to the grain see improving, most see be exports for our you are growing, point markets utilization and that's healthy, decision important going customers grain see the

will I steel I I making or absolutely that When lower with think start be? will decisions tell reductions. help. think prices you. cannot But price point, our without Now at But I customers our an don't some business can We think say, month, is flexibility. but for eye, production have let's lower barge and we dry we shut we'll completely spell XX our keep to down still an this rates. will where have

capacity case production in thing improves also. ramp these to up have We

invested So few And I can shape. production and our years, down up better. good in and we've over faster think we're in and we the last ramp plants

just to I increase moderate can prices talking how we So capacity. start steel and hope about

Operator

Justin We question our G. Research. will Bergner next from take from

Justin Bergner

terms part anticipated $X.X to new in are clarify takes. of elements an those the guidance the puts guidance, winter you storm Was sort either of some looks or end of the equivalent amount when revised the as of So of and and million guidance? small of of the February, of just like, headwinds, it gain sort back gave

Scott Beasley

But incorporated in each the they that roughly I'd gave offset say we guidance neither were in other. February.

nonoperating $X to the million in had We So about million of million we plant. for $X the storm had impact. $X QX, gain

is So that's our reasons guidance we like still range the full other. because they each roughly year feel of one offset intact

Justin Bergner

deal you the at vein And quarters or then the are the ahead? bigger or near in of bolt-ons, remain StonePoint of StonePoint more size in you open deal picture, to, these another consider the deals that the would

Antonio Carrillo

enormous leverage, room mentioned, of have we Scott have our an some room. we but in amount As don't

do So we room right don't now, StonePoint-sized deal. another have to

So we're going disciplined. remain to

things platforms some that's should over we've brought StonePoint few years, that what enhance Cherry you some acquired expect current last what brought think I ideas. would our on. the we're focusing is ideas. see that to

on. more it some bigger So And focusing some we're our that's smaller some, additions say, There but to platforms. be what are be let's would would and bolt-on. it bolt-ons,

Justin Bergner

bill commentary And where surprised positively the seem the you is things any proposal the And sort of anything business where about any thought surprising know But whisper then I or too turn was negatively or there asked of like you just part there out? versus it we had the lastly, part sort didn't beforehand. infrastructure. amounts in were in your language heard bill of would draft of or

Antonio Carrillo

thing I No, that thing little how think capital in has bullish short not been with translates heard more lines we everything a only it probably the that's bullish more deployment sure some probably yet. said, and I happens, transmission unexpected. in I the lot actual into that's for there's the things behind it more I'm work, only Probably we thing of only or renewables, some that think term for a how we've that more expected. as less, had of was or language than But line was expected. seen, that

Justin Bergner

Are the loans short you referring to DOE of terms the of renewables? term bill in

Antonio Carrillo

Yes…

Operator

Crist from question We our Securities. next will CJS from Stefanos take

Stefanos Crist

and about talk we materials can geographic that the something maybe versus that? specialty driving why the else just was specialty in First, the is there down aggregates difference legacy Is natural the mix year-over-year? or

Scott Beasley

work, where center strong been strong very The was really that's business a infrastructure distribution legacy lot And end a deurbanization. driven of of center parts lot then with and market, driven the demand of work. been demand, data by residential the too, strong, up nonresidential has strongly three all in

prepandemic -- was was been say So we've therefore, was talked building it to slower and XXXX. construction and QX that's were delays has bit been focused, products QX, was, Specialty has throughout year. there is We'd number news where chain. COVID products supply the supply the impacted or chain more the There good by a the recover. last at more all in our lightweight above of destocking in about That of throughout healthy. a business

gives coming out reasons optimistic year. impacts, we're that's we're of about particularly this and confidence one lot COVID the worst a So of that increased the of us that

Antonio Carrillo

me add let one Stefano, thing. just

the Our We was thousands. biggest first specialty and the in of had normally in terms storm materials of quarter prices. from that where had it went gas $XX,XXX to bill a we the plant had natural impact hundreds

from gas a the So natural materials side. biggest felt impact is We and where have few of specialty those the we

Stefanos Crist

more, on customers older high barge seeing just one scrapping And utilization and any low, prices With you back barges? are steel barge. their so

Antonio Carrillo

the at asked Yes. times we now. going you been steel the I'm very scrap good buy steel glad you buy where right prices I are also high. prices scrap is up, very, but There's that mean, price because are can news --

seeing barge been are and a rates we scrap scrapped a year few So built there Last it's than already years. were was increase. year more where

because demand things the a it's utilization coming. grow coming. didn't couple it why cycle prices we just are to We to course, a of of up pent And up, That's to quarters But COVID think. We expect several when they we accumulating, the is ago good. steel I that's everything. that So these wait is just replacement opened didn't pick the factors. so see years delayed temporary this by we much. very to are we and saying for expect, for like the barges It's been have bullish going. plant We are like few were reduce

Operator

that we will Gail or at no I It have the any over remarks. to turn for time. appears additional back this further questions program Peck now closing

Gail Peck

joining to thank Thank us next you, everyone, quarter. with you, today. you for speaking and forward Mallory, We again look

Operator

Thank participation. you does program. today's for This conclude your

You may any disconnect at time.

Arcosa (ACA) 30 Apr 212021 Q1 Earnings call transcript