Arcosa Inc
For the period ended Jun 30, 2024. Filed Aug 2, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 2, 2024
ACA$149.15+0.1%Stored close · as of Oct 22, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-03.
0001739445-24-000067
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-02.
0001739445-24-000114
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 148 previous paragraphs and 163 current paragraphs.
89 unchanged; 40 reworded; 33 added; 18 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 10 previous and 10 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
In August 2024, the Company entered into an agreement to acquire the construction materials business of Stavola Holding Corporation and its affiliated entities ("Stavola") for $1.2 billion in cash. Stavola, which will be reported within the Construction Products segment, serves the New York-New Jersey market through its network of five natural aggregates quarries, twelve asphalt plants, and three recycled aggregates sites. The Company has obtained $1.2 billion of committed secured bridge loan financing, as well as a backstop to its existing $600 million revolving credit facility. Prior to the transaction close, the Company anticipates accessing the long-term debt capital markets for permanent financing with a mix of secured and unsecured debt. The transaction is expected to close in the fourth quarter.
Current report
Concurrently, the Company announced it has entered into an agreement to sell its steel components business. The steel components business, reported in the Transportation Products segment, is a leading supplier of railcar coupling devices, railcar axles, and circular forgings. The transaction is expected to close during the third quarter.
Current report
•Operating profit for the three months ended June 30, 2024 increased by $16.2 million to $67.2 million driven by growth in all three segments. Excluding the $21.8 million gain on the sale of depleted land in the prior period, operating profit for the six months ended June 30, 2024 increased by $16.3 million to $120.6 million with all three segments contributing to the growth.
Current report
•Revenues increased by 13.7% and 11.4% during the three and six months ended June 30, 2024, respectively.
Current report
•Revenues from Engineered Structures increased primarily due to higher volumes in our utility structures and wind towers businesses and the contribution from the acquired Ameron business.
Current report
•Operating costs increased by 11.9% and 13.4% during the three and six months ended June 30, 2024, respectively.
Current report
•Operating costs for Construction Products increased primarily due to increased costs from the recently acquired businesses.
Current report
•Operating costs for Engineered Structures increased primarily due to higher volumes in utility structures and wind towers and increased costs from the acquired Ameron business.
Current report
•Operating profit increased 31.8% for the three months ended June 30, 2024 and increased 15.6% for the six months ended June 30, 2024, excluding the $21.8 million gain on the sale of depleted land in the prior period.
Current report
•Operating profit in Construction Products increased primarily due to the accretive impact of recent acquisitions and operating improvements in our specialty materials business. For the six months ended June 30, 2024, operating profit increased 9.8% excluding the prior year land sale gain.
Current report
•Operating profit in Engineered Structures increased for the three and six months ended June 30, 2024 due to additional gains on sale of the storage tanks business, higher utility structure and wind tower volumes, and the impact of the acquired Ameron business.
Current report
•Revenues increased 4.3% primarily due to recent acquisitions. Organic revenues in our aggregates and specialty materials businesses were roughly flat as higher pricing was mostly offset by lower volumes primarily due to elevated rainfall during the period, a decrease in freight revenue, and a reduction in revenue from recently divested operations. Revenues in our trench shoring business increased 7.7% primarily due to higher volumes.
Current report
•Cost of revenues increased 3.4% primarily due to increased costs from the recently acquired businesses, including higher depreciation, depletion, and amortization expense and the cost impact of the fair market value write-up of acquired inventory and a $5.0 million benefit recognized in the prior period related to the reduction in a holdback obligation owed on a previous acquisition. The increase was partially offset by lower organic volumes in our aggregates and specialty materials businesses and operating improvements in our specialty materials and trench shoring businesses. As a percentage of revenues, cost of revenues decreased to 75.4% in the current period, compared to 76.1% in the prior period.
Current report
•During the current period, the segment recognized a $5.0 million gain on the sale of an under-performing single-location asphalt and paving operation and an impairment charge of $5.8 million related to the closure of its aggregates operations in west Texas for a net reduction in operating profit of $0.8 million.
Current report
•Operating profit increased 14.5% primarily due to the accretive impact of recent acquisitions and operating improvements in our specialty materials business and trench shoring businesses, partially offset by the benefit from the holdback payment in the prior period.
Current report
•Revenues increased 5.3% primarily due to recent acquisitions. Organic revenue in our aggregates and specialty materials businesses were up slightly as higher pricing more than offset the lower volumes driven by abnormally wet weather, a decrease in freight revenue, and a reduction in revenue from recently divested operations. Revenues from our trench shoring business increased 11.6% driven by revenues from higher organic volumes and the acquisition completed in the first quarter of 2023.
Current report
•Cost of revenues increased 5.8% primarily due to increased costs from the recently acquired businesses, including higher depreciation, depletion, and amortization expense and $1.3 million for the cost impact of the fair market value write-up of acquired inventory and a $5.0 million benefit recognized in the prior period related to the reduction in a holdback obligation owed on a previous acquisition. These costs were partially offset by lower organic volumes in our aggregates and specialty materials businesses and operating improvements in our specialty materials business. As a percentage of revenues, cost of revenues was 77.1% in the current period, compared to 76.7% in the prior period.
Current report
•Depreciation, depletion, and amortization expense increased primarily due to recent acquisitions and organic growth investments.
Current report
•Revenues increased 32.8% primarily due to higher volumes in our utility structures and wind towers businesses and the contribution from the acquired Ameron business.
Current report
•Selling, general, and administrative expenses increased 40.0% primarily due to additional costs from the acquired Ameron business and higher compensation-related costs in utility structures.
Current report
•During the current period, the Company recognized a gain on the sale of a non-operating facility that previously supported the divested storage tanks business.
Current report
•Operating profit increased 61.8% primarily due to the gain recognized during the period, higher utility structure and wind tower volumes, and the impact of the acquired Ameron business.
Current report
•Depreciation and amortization expense increased primarily due to the acquired Ameron business and organic growth investments.
Current report
•Selling, general, and administrative expenses increased 29.0% primarily due to additional cost from the acquired Ameron business and higher compensation-related costs in utility structures.
Current report
•Operating profit increased 19.0% primarily due to the gain recognized during the period, higher utility structures and wind towers volumes, and the impact of the acquired Ameron business, partially offset by lower margins in our utility structures business and driven by product mix.
Current report
•Revenues were substantially unchanged as an increase in inland barge revenues of 4.4%, driven by higher hopper barge deliveries, was offset by a decrease in steel components revenues 5.9% due to a decline in volumes.
Current report
•Cost of revenues were roughly flat, in line with the change in revenues. As a percentage of revenues, cost of revenues was 83.0% both periods.
Current report
•Selling, general, and administrative expenses decreased 10.7% primarily due to expenses from participation in trade remedy proceedings involving certain imports of freight rail couplers from China and Mexico incurred in the prior year. As a percentage of revenues, selling, general, and administrative expenses decreased to 5.9%, compared to 6.6% in the prior period.
Current report
•Revenues increased 5.1% due to higher volumes and improved pricing of inland barges, partially offset by lower steel components volumes.
Current report
•Selling, general, and administrative expenses decreased 3.7% primarily due to expenses from participation in trade remedy proceedings involving certain imports of freight rail couplers from China and Mexico incurred in the prior year. As a percentage of revenues, selling, general, and administrative expenses decreased 5.7%, compared to 6.2% in the prior period.
Current report
•Operating profit increased 25.3%, outpacing the percentage increase in revenues, driven by higher hopper barge volumes and a decrease in selling, general, and administrative costs, partially offset by lower steel component volumes.
Current report
•Corporate overhead costs increased 16.4% primarily due to higher acquisition and divestiture-related expenses of $5.5 million, compared to $0.9 million for the same period in 2023.
Current report
•Proceeds from the sale of businesses was $33.3 million during the six months ended June 30, 2024, compared to $2.0 million for the same period in 2023.
Removed paragraphs (18)
Previous report
•Operating profit for the three months ended March 31, 2024 totaled $53.4 million, a decrease of $21.7 million year-over-year. Excluding the $21.8 million gain on the sale of depleted land in the prior period, operating profit was roughly flat as higher operating profit in Construction Products and Transportation Products was offset by lower operating profit in Engineered Structures.
Previous report
•Revenues increased 9.0%.
Previous report
•Operating costs increased 15.0%. A $21.8 million gain on the sale of depleted land was netted against operating costs in the prior period. Excluding this gain, operating costs increased 9.9%.
Previous report
•Cost of revenues for Construction Products increased primarily due to increased costs from the recently acquired businesses.
Previous report
•Cost of revenues for Engineered Structures increased due to higher utility structure and wind tower volumes as well as additional costs incurred for the startup of two new facilities.
Previous report
•Operating profit decreased 28.9% largely due to a $21.8 million gain on the sale of depleted land in 2023. Excluding this gain, operating profit was flat.
Previous report
•Operating profit in Construction Products decreased due to a decline in the gain recognized on long-lived assets, partially offset by the accretive impact of recently acquired businesses.
Previous report
•Operating profit in Engineered Structures decreased due to lower margin in our utility structures business driven by project mix and additional costs incurred for the start up of two new facilities.
Previous report
•Revenues increased 6.4% driven by recent acquisitions and higher organic revenues in our legacy operations. Recent acquisitions increased revenues approximately 4.5%. In our legacy operations, higher revenues resulted from increased pricing across our aggregates and specialty materials businesses and higher organic volumes in trench shoring, partially offset by lower freight revenues.
Previous report
•Cost of revenues increased 8.4% primarily due to increased costs from the recently acquired businesses, including higher depreciation, depletion, and amortization expense and $1.2 million for the cost impact of the fair market value write-up of acquired inventory. As a percent of revenues, cost of revenues increased to 78.9% in the current period, compared to 77.5% in the prior period.
Previous report
•Revenues increased 11.5% primarily due to increased volumes in our utility structures and wind towers businesses, partially offset by lower utility structures pricing due to project mix.
Previous report
•Selling, general, and administrative expenses increased 17.1% primarily due to increased headcount and higher sales-related costs.
Previous report
•Operating profit decreased 12.0% primarily due to lower margins in our utility structures business driven by project mix and additional startup costs.
Previous report
•Depreciation and amortization expense increased primarily due to organic growth investments.
Previous report
•Revenues increased 9.9%. Inland barge revenues increased 17.0% primarily due to higher volumes and pricing for hopper barges. Revenues for steel components decreased 3.2% due to a slight decline in volumes.
Previous report
•Proceeds from the sale of the storage tanks business were $6.7 million during the three months ended March 31, 2024, compared to $2.0 million for the same period in 2023, both related to the resolution of certain contingencies from the sale that closed in October 2022. There was no divestiture activity during the three months ended March 31, 2024 or 2023.
Previous report
Derivative Instruments
Previous report
In December 2018, the Company entered into a $100.0 million interest rate swap instrument, effective as of January 2, 2019, to reduce the effect of changes in the variable interest rates associated with the first $100.0 million of borrowings under the Company's committed credit facility. In conjunction with the replacement of LIBOR with SOFR as a benchmark for borrowings under the Amended and Restated Credit Agreement, on July 1, 2023 the swap instrument transitioned from LIBOR to SOFR. The instrument effectively fixed the SOFR component of borrowings under the revolving credit facility at a monthly rate of 2.71% until such instrument's termination. The interest rate swap instrument expired in October 2023. See Note 7 Debt to the Consolidated Financial Statements.
Reworded paragraphs (40)
Previous wording
•Within our Engineered Structures segment, our backlog as of March 31, 2024 provides good production visibility for the remainder of 2024. Our customers remain committed to taking delivery of these orders. In utility structures, order and inquiry activity continues to be healthy, as customers remain focused on grid hardening and reliability initiatives. The passage of the Inflation Reduction Act ("IRA") on August 16, 2022, which included a long-term extension of the Production Tax Credit (“PTC”) for new wind farm projects and introduced new Advanced Manufacturing Production (“AMP”) tax credits for companies that domestically manufacture and sell clean energy equipment in the U.S., is a significant catalyst for our wind towers business. As demonstrated by more than $1.1 billion of new orders for delivery through 2028, which we have received since the passage of the IRA, our wind towers business is at the beginning stages of a market recovery. A large portion of these orders will support wind energy expansion projects in the Southwest. As a result, we are opening a new plant in New Mexico and expect to start delivering towers from this facility in the second quarter of 2024.
Current wording
•Within our Engineered Structures segment, our backlog as of June 30, 2024 provides good production visibility for the remainder of 2024. Our customers remain committed to taking delivery of these orders. In utility structures, order and inquiry activity continues to be healthy, as customers remain focused on grid hardening and reliability initiatives. The passage of the Inflation Reduction Act ("IRA") on August 16, 2022, which included a long-term extension of the Production Tax Credit (“PTC”) for new wind farm projects and introduced new Advanced Manufacturing Production (“AMP”) tax credits for companies that domestically manufacture and sell clean energy equipment in the U.S., is a significant catalyst for our wind towers business. As demonstrated by more than $1.1 billion of new orders for delivery through 2028, which we have received since the passage of the IRA, our wind towers business is at the beginning stages of a market recovery. A large portion of these orders will support wind energy expansion projects in the Southwest. As a result, we have opened a new plant in New Mexico and have started delivering towers from this facility late in the second quarter of 2024.
Previous wording
•Within our Transportation Products segment, our backlog for inland barges as of March 31, 2024 was $294.4 million, up 16% compared to December 31, 2023, and extends into 2025. Our customers remain committed to taking delivery of these orders. While still recovering from cyclical lows, our backlog at the end of the first quarter is near its highest level since the onset of the COVID-19 pandemic when order levels fell sharply and have remained low due to persistently high steel prices. Over this time, customer inquiries have remained healthy, particularly for dry barges, as the fleet continues to age, new builds have not kept pace with scrapping, and utilization rates are high. We have been successful in filling orders when we can strategically source steel. As a result, we received orders of $120 million in the first quarter for both hopper and tank barges. Demand for steel components has stabilized as the near-term outlook for the new railcar market indicates replacement-level demand.
Current wording
•Within our Transportation Products segment, our backlog for inland barges as of June 30, 2024 was $251.5 million and extends into 2025. Our customers remain committed to taking delivery of these orders. Our barge business is recovering from cyclical lows resulting from the onset of the COVID-19 pandemic when order levels fell sharply and have remained low due to persistently high steel prices. Over this time, customer inquiries have remained healthy, initially for dry barges and more recently for tank barges. The fleet continues to age as new builds have not kept pace with scrapping, and utilization rates are high. We have been successful in filling orders when we can strategically source steel. During the second quarter, we received orders of $33 million primarily for tank barges. Demand for steel components has stabilized as the near-term outlook for the new railcar market indicates replacement-level demand.
Previous wording
In April 2024, we completed the acquisition of Ameron Pole Products, LLC ("Ameron"), a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecom, for a total purchase price of $180.0 million. With operations in Alabama, California, and Oklahoma, Ameron will be included in our Engineered Structures segment. The acquisition was funded with $160.0 million of borrowings under our revolving credit facility and cash on hand.
Current wording
In April 2024, we completed the acquisition of Ameron Pole Products, LLC ("Ameron"), a leading manufacturer of highly engineered, premium concrete and steel poles for a broad range of infrastructure applications, including lighting, traffic, electric distribution, and small-cell telecom, for a total purchase price of $180.0 million. With operations in Alabama, California, and Oklahoma, Ameron is included in our Engineered Structures segment. The acquisition was funded with $160.0 million of borrowings under our revolving credit facility and cash on hand.
Previous wording
•Revenues for the three months ended March 31, 2024 increased 9.0% to $598.6 million due to higher revenues in all three segments compared to the three months ended March 31, 2023.
Current wording
•Revenues for the three and six months ended June 30, 2024 increased by 13.7% and 11.4% to $664.7 million and $1,263.3 million, respectively, from the same periods in 2023, due to higher revenues in all three segments.
Previous wording
•Selling, general, and administrative expenses increased 10.6% due to increased headcount, additional costs from recently acquired businesses, and higher acquisition and divestiture-related expenses. As a percentage of revenues, selling, general, and administrative expenses increased slightly to 11.5% for the three months ended March 31, 2024, compared to 11.4% for the same period in 2023.
Current wording
•Selling, general, and administrative expenses increased by 12.4% and 11.6% for the three and six months ended June 30, 2024, respectively, compared to the same periods in the prior year, driven by increased costs from recently acquired businesses and higher acquisition and divestiture-related expenses. As a percentage of revenues, selling, general, and administrative expenses were 12.0% and 11.8% for the three and six months ended June 30, 2024, respectively, compared to 12.1% and 11.7% for the same periods in 2023, respectively.
Previous wording
•The effective tax rate for the three months ended March 31, 2024 was 17.1%, compared to 20.3% for the same period in 2023. See Note 10 Income Taxes to the Consolidated Financial Statements.
Current wording
•The effective tax rate for the three and six months ended June 30, 2024 was 14.3% and 15.6%, respectively, compared to 12.0% and 17.0%, respectively, for the same periods in 2023. See Note 10 Income Taxes to the Consolidated Financial Statements.
Previous wording
•Net income for the three months ended March 31, 2024 was $39.2 million, compared to $55.7 million for the same period in 2023.
Current wording
•Net income for the three and six months ended June 30, 2024 was $45.6 million and $84.8 million, respectively, compared to $40.9 million and $96.6 million, respectively, for the same periods in 2023.
Previous wording
Approximately 40% of the unsatisfied performance obligations for utility, wind, and related structures in our Engineered Structures segment are expected to be delivered during 2024, approximately 29% are expected to be delivered during 2025 and the remainder are expected to be delivered through 2028. Approximately 73% of the unsatisfied performance obligations for inland barges in our Transportation Products segment are expected to be delivered during 2024, and the remainder are expected to be delivered during 2025.
Current wording
Approximately 37% of the unsatisfied performance obligations for utility, wind, and related structures in our Engineered Structures segment are expected to be delivered during 2024, approximately 32% are expected to be delivered during 2025 and the remainder are expected to be delivered through 2028. Approximately 69% of the unsatisfied performance obligations for inland barges in our Transportation Products segment are expected to be delivered during 2024, and the remainder are expected to be delivered during 2025.
Previous wording
•Revenues from Construction Products increased primarily due to the contribution from recent acquisitions and higher pricing across our aggregates and specialty material businesses.
Current wording
•Revenues from Construction Products increased primarily due to the contribution from recent acquisitions.
Previous wording
•Revenues from Transportation Products increased primarily due to higher volumes and pricing for hopper barges.
Current wording
•Revenues from Transportation Products increased due to higher hopper barge deliveries.
Previous wording
•Cost of revenues for Transportation Products increased primarily due to higher volumes in inland barge.
Current wording
•Operating costs for Transportation Products were roughly flat primarily due to higher volumes in inland barge.
Previous wording
•Depreciation, depletion, and amortization increased 10.3% as a result of recent acquisitions and organic growth investments.
Current wording
•Depreciation, depletion, and amortization expense increased as a result of recent acquisitions and organic growth investments.
Previous wording
•Selling, general, and administrative expenses increased 10.6% for the three months ended March 31, 2024 compared to the same period in 2023 due to increased headcount, additional costs from recently acquired businesses, and higher acquisition and divestiture-related expenses. As a percentage of revenues, selling, general, and administrative expenses increased slightly to 11.5% for the three months ended March 31, 2024, compared to 11.4% for the same period in 2023.
Current wording
•Selling, general, and administrative expenses increased by 12.4% and 11.6% for the three and six months ended June 30, 2024, compared to the same periods in the prior year, driven by increased costs from recently acquired businesses and higher acquisition and divestiture-related expenses. As a percentage of revenues, selling, general, and administrative expenses were 12.0% and 11.8% for the three and six months ended June 30, 2024, respectively, compared to 12.1% and 11.7% for the same periods in 2023, respectively.
Previous wording
•Operating profit in Transportation Products increased driven by higher hopper barge volumes and improved margins.
Current wording
•Operating profit in Transportation Products increased for the three and six months ended June 30, 2024 driven by higher hopper barge volumes and lower selling, general, and administrative expenses.
Previous wording
The provision for income taxes results in effective tax rates that differ from the statutory rates. The Company's effective tax rate for the three months ended March 31, 2024 was 17.1% compared to 20.3% for the same period in 2023. The decrease in the tax rate for the three months ended March 31, 2024 is primarily due to AMP tax credits, excess tax benefits related to equity compensation, and reduced state income taxes, partially offset by increased foreign taxes.
Current wording
The provision for income taxes results in effective tax rates that differ from the statutory rates. The Company's effective tax rate for the three and six months ended June 30, 2024 was 14.3% and 15.6%, respectively, compared to 12.0% and 17.0%, respectively, for the same periods in 2023. The change in the tax rate for the three and six months ended June 30, 2024 is primarily due to AMP tax credits, differences in the tax effects of foreign currency translations, compensation-related items, state income taxes and statutory depletion deductions.
Previous wording
Our effective tax rate differs from the federal tax rate of 21.0% due to AMP tax credits, tax effects of foreign currency translations, compensation-related items, state income taxes, prior year true-ups, and statutory depletion deductions. See Note 10 Income Taxes to the Consolidated Financial Statements for further discussion of income taxes.
Current wording
Our effective tax rate differs from the federal tax rate of 21.0% due to AMP tax credits, tax effects of foreign currency translations, compensation-related items, state income taxes and statutory depletion deductions. See Note 10 Income Taxes to the Consolidated Financial Statements for further discussion of income taxes.
Previous wording
•Selling, general, and administrative expenses increased 6.5% due to additional costs from recently acquired businesses. Selling, general, and administrative expenses as a percentage of revenues was 11.1% in both periods.
Current wording
•Selling, general, and administrative expenses decreased 1.4% due to lower costs in our aggregates and trench shoring businesses. Selling, general, and administrative expenses as a percentage of revenues was 10.5% in the current period, compared to 11.1% in the prior period.
Previous wording
•Depreciation, depletion, and amortization expense increased 11.9% primarily due to the fair market value write-up of long-lived assets from recent acquisitions and organic growth investments.
Current wording
•Depreciation, depletion, and amortization expense increased 5.8% primarily due to the fair market value write-up of long-lived assets from recent acquisitions and organic growth investments.
Previous wording
•Selling, general, and administrative expenses increased slightly, but decreased as a percentage of revenues to 5.4%, compared to 5.7% in the prior period.
Current wording
•Selling, general, and administrative expenses were roughly flat. Selling, general, and administrative expenses decreased as a percentage of revenues to 10.8%, compared to 11.1% in the prior period.
Previous wording
•Operating profit decreased 41.8% primarily due to a $21.8 million gain on the sale of depleted land in the prior period. Excluding this gain, operating profit increased 4.0% driven by the accretive impact of recent acquisitions and operating improvements in our specialty materials business, partially offset by the fair value write-up of inventory from recent acquisitions.
Current wording
•Operating profit decreased 18.7% primarily due to a $21.8 million gain on the sale of depleted land in the prior period. Excluding the gain, operating profit increased 9.8% driven by the accretive impact of recent acquisitions and operating improvements in our specialty materials business.
Previous wording
•Revenues from Engineered Structures increased primarily due to increased volumes in our utility structures and wind towers businesses, partially offset by lower utility structures pricing due to product mix.
Current wording
•Revenues increased 22.1% primarily due to higher volumes in our utility structures and wind towers businesses and the contribution from the acquired Ameron business, partially offset by lower utility structures pricing due to product mix.
Previous wording
•Cost of revenues increased 15.1% primarily due to higher utility structures and wind towers volumes. Cost of revenues also increased approximately 4% due to additional expenses incurred related to the startup of two new facilities: a concrete utility structures plant and a wind tower plant. The increase was partially offset by higher AMP tax credits.
Current wording
•Cost of revenues increased 24.1% primarily due to increased costs from the acquired Ameron business, including higher depreciation and amortization expense and $1.6 million for the cost impact of the fair market value write-up of acquired inventory. Costs of revenues also increased due to higher utility structures and wind towers volumes and additional expenses incurred related to the startup of two new facilities: a concrete utility structures plant and a wind tower plant, which was partially offset by higher AMP tax credits.
Previous wording
•During both periods presented, the Company recognized an additional gain on the sale of the storage tanks business, which was divested on October 3, 2022, related to the settlement of certain contingencies from the sale.
Current wording
•During both periods presented, the Company recognized an additional gain on the sale of the storage tanks business, which was divested on October 3, 2022, related to the settlement of certain contingencies from the sale and gain on the sale of a non-operating facility that previously supported the divested business.
Previous wording
As of March 31, 2024, the backlog for utility, wind, and related structures was $1,366.7 million, compared to $1,367.5 million and $1,531.4 million as of December 31, 2023 and March 31, 2023, respectively. Approximately 40% of these unsatisfied performance obligations are expected to be delivered during 2024 , approximately 29% during 2025, and the remainder are expected to be delivered through 2028.
Current wording
As of June 30, 2024, the backlog for utility, wind, and related structures was $1,338.7 million, compared to $1,367.5 million and $1,507.4 million as of December 31, 2023 and June 30, 2023, respectively. Approximately 37% of these unsatisfied performance obligations are expected to be delivered during 2024, approximately 32% during 2025, and the remainder are expected to be delivered through 2028.
Previous wording
•Operating profit increased 44.6%, outpacing the percentage increase in revenues, driven by higher hopper barge volumes and improved margins across both businesses.
Current wording
•Operating profit increased 8.6%, outpacing the percentage increase in revenues, driven by higher hopper barge volumes and a decrease in selling, general, and administrative costs, partially offset by lower steel component volumes.
Previous wording
•Cost of revenues increased 6.3% reflecting the higher barge volumes during the current period. As a percent of revenues, cost of revenues decreased to 82.0% in the current period, compared to 84.7% in the prior period.
Current wording
•Cost of revenues increased 3.4% driven by higher barge volumes partially offset by lower steel component volumes. As a percentage of revenues, cost of revenues decreased to 82.5% in the current period, compared to 83.9% in the prior period.
Previous wording
As of March 31, 2024, the backlog for inland barges was $294.4 million, compared to $253.7 million and $279.0 million as of December 31, 2023 and March 31, 2023, respectively. Approximately 73% of unsatisfied performance obligations for inland barges are expected to be delivered during 2024, and the remainder are expected to be delivered in 2025.
Current wording
As of June 30, 2024, the backlog for inland barges was $251.5 million, compared to $253.7 million and $287.1 million as of December 31, 2023 and June 30, 2023, respectively. Approximately 69% of unsatisfied performance obligations for inland barges are expected to be delivered during 2024, and the remainder are expected to be delivered in 2025.
Previous wording
•Corporate overhead costs increased 13.2% primarily due to higher acquisition and divestiture-related expenses of $1.6 million, compared to $0.6 million for the same period in 2023, and increased compensation-related expenses.
Current wording
•Corporate overhead costs increased 19.2% primarily due to higher acquisition and divestiture-related expenses of $3.9 million, compared to $0.3 million for the same period in 2023.
Previous wording
The following table summarizes our cash flows from operating, investing, and financing activities for the three months ended March 31, 2024 and 2023:
Current wording
The following table summarizes our cash flows from operating, investing, and financing activities for the six months ended June 30, 2024 and 2023:
Previous wording
Operating Activities. Net cash provided by operating activities for the three months ended March 31, 2024 was $80.5 million, compared to $27.3 million for the three months ended March 31, 2023.
Current wording
Operating Activities. Net cash provided by operating activities for the six months ended June 30, 2024 was $118.8 million, compared to $154.9 million for the six months ended June 30, 2023.
Previous wording
•The changes in current assets and liabilities resulted in a net source of cash of $4.6 million for the three months ended March 31, 2024, compared to a net use of cash of $55.4 million for the three months ended March 31, 2023. The current year activity was primarily driven by a decrease in inventories and higher advanced billings and accounts payable, partially offset by increased receivables.
Current wording
•The changes in current assets and liabilities resulted in a net use of cash of $44.7 million for the six months ended June 30, 2024, compared to a net use of cash of $14.4 million for the six months ended June 30, 2023. The current year activity was primarily driven by increased receivables, partially offset by decreased inventories.
Previous wording
Investing Activities. Net cash required by investing activities for the three months ended March 31, 2024 was $43.5 million, compared to $34.1 million for the three months ended March 31, 2023.
Current wording
Investing Activities. Net cash required by investing activities for the six months ended June 30, 2024 was $241.2 million, compared to $86.1 million for the six months ended June 30, 2023.
Previous wording
•Capital expenditures for the three months ended March 31, 2024 were $54.4 million, compared to $44.4 million for the same period last year with the increase primarily driven by various growth projects within the Construction Products and Engineered Structures segments. Full-year capital expenditures are expected to be approximately $190 to $205 million in 2024.
Current wording
•Capital expenditures for the six months ended June 30, 2024 were $102.0 million, compared to $96.9 million for the same period last year with the increase primarily driven by various growth projects within the Construction Products and Engineered Structures segments. Full-year capital expenditures are expected to be approximately $190 to $205 million in 2024.
Previous wording
•Proceeds from the sale of property, plant, and equipment and other assets totaled $4.2 million for the three months ended March 31, 2024, compared to $23.9 million for the same period in 2023. Prior year activity mainly related to the sale of depleted land in the Construction Products segment.
Current wording
•Proceeds from the sale of property, plant, and equipment and other assets totaled $7.4 million for the six months ended June 30, 2024, compared to $24.4 million for the same period in 2023.
Previous wording
•There was no activity related to cash paid for acquisitions, net of cash acquired for the three months ended March 31, 2024, compared to $15.6 million for the same period in 2023.
Current wording
•Cash paid for acquisitions, net of cash acquired, was $179.9 million for the six months ended June 30, 2024, compared to $15.6 million for the same period in 2023.
Previous wording
Financing Activities. Net cash provided by financing activities during the three months ended March 31, 2024 was $34.7 million, compared to net cash required by financing activities of $4.4 million for the same period in 2023.
Current wording
Financing Activities. Net cash provided by financing activities during the six months ended June 30, 2024 was $121.3 million, compared to net cash required by financing activities of $31.3 million for the same period in 2023.
Previous wording
•Current year activity was primarily driven by borrowings of $40.0 million under the revolving credit facility partially offset by scheduled debt payments and dividends paid during the period.
Current wording
•Current year activity was primarily driven by net borrowings of $136.6 million under the revolving credit facility to fund recent acquisitions, offset by the purchase of shares to satisfy employee taxes on vested stock and dividends paid during the period.
Previous wording
As of March 31, 2024, we had $200.0 million of outstanding loans borrowed under the revolving credit facility, and there were approximately $22.0 million of letters of credit issued, leaving $378.0 million available for borrowing. Of the outstanding letters of credit as of March 31, 2024, $21.4 million are expected to expire in 2024, with the remainder in 2025. The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew by their terms each year.
Current wording
In April 2024, we borrowed an additional $160.0 million under our revolving credit facility to fund, in part, the acquisition of Ameron, of which $60.0 million was repaid during the three months ended June 30, 2024. As of June 30, 2024, we had $300.0 million of outstanding loans borrowed under the revolving credit facility, and there were approximately $10.7 million of letters of credit issued, leaving $289.3 million available for borrowing. Of the outstanding letters of credit as of June 30, 2024, $10.7 million are expected to expire in 2025. The majority of our letters of credit obligations support the Company’s various insurance programs and generally renew by their terms each year.
Previous wording
The Company's revolving credit facility requires the maintenance of certain ratios related to leverage and interest coverage. As of March 31, 2024, we were in compliance with all such financial covenants. Borrowings under the revolving credit facility are guaranteed by certain wholly-owned subsidiaries of the Company.
Current wording
The Company's revolving credit facility requires the maintenance of certain ratios related to leverage and interest coverage. As of June 30, 2024, we were in compliance with all such financial covenants. Borrowings under the revolving credit facility are guaranteed by certain domestic subsidiaries of the Company.
Previous wording
In December 2022, the Board authorized a new $50.0 million share repurchase program effective January 1, 2023 through December 31, 2024 to replace a program of the same amount that expired on December 31, 2022. For the three months ended March 31, 2024, the Company did not repurchase any shares. As of March 31, 2024, the Company had a remaining authorization of $36.2 million under the program. See Note 1 Overview and Summary of Significant Accounting Policies to the Consolidated Financial Statements.
Current wording
In December 2022, the Board authorized a new $50.0 million share repurchase program effective January 1, 2023 through December 31, 2024 to replace a program of the same amount that expired on December 31, 2022. For the three and six months ended June 30, 2024, the Company did not repurchase any shares. As of June 30, 2024, the Company had a remaining authorization of $36.2 million under the program. See Note 1 Overview and Summary of Significant Accounting Policies to the Consolidated Financial Statements.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
•Cost of revenues increased 33.0% primarily due to increased costs from the acquired Ameron business, including higher depreciation and amortization expense and $1.6 million for the cost impact of the fair market value write-up of acquired inventory. Costs of revenues also increased due to higher utility structures and wind towers volumes and additional expenses incurred related to the startup of two new facilities: a concrete utility structures plant and a wind tower plant. These costs were partially offset by higher AMP tax credits.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
In April 2024, we borrowed an additional $160.0 million under our revolving credit facility to fund, in part, the acquisition of Ameron.