•Potential Impact of COVID-19 on our Business

•Liquidity and Capital Resources

Potential Impact of COVID-19 on our Business

Our Engineered Structures and Transportation Products segments operate in cyclical industries. Additionally, results in our Construction Products segment are affected by weather and seasonal fluctuations with the second and third quarters historically being the quarters with the highest revenues.

As of June 30, 2022, December 31, 2021, and June 30, 2021, our unsatisfied performance obligations, or backlog, were as follows:

•Revenues increased by 17.0% and 19.2% during the three and six months ended June 30, 2022, respectively.

•Revenues from Engineered Structures increased primarily due to increased pricing in all product lines driven by higher steel prices.

•Revenues from Transportation Products increased primarily due to increased deliveries in steel components.

(1) Depreciation, depletion, and amortization are components of operating costs.

•Operating costs increased by 12.8% and 16.1% during the three and six months ended June 30, 2022.

•Cost of revenues for Construction Products increased primarily due to higher volumes, higher fuel prices, and other inflationary-related increases.

•Cost of revenues for Engineered Structures increased primarily due to higher steel prices.

•Cost of revenues for Transportation Products increased primarily due to higher steel component volumes and higher steel costs in inland barges.

•Depreciation, depletion, and amortization increased primarily due to recent acquisitions, including the fair value mark up of long-lived assets.

•Operating profit increased by 82.7% and 69.6% during the three and six months ended June 30, 2022.

•Operating profit in Construction Products increased primarily due to higher volumes.

•Operating profit in Engineered Structures increased primarily due to higher revenues and improved margins in our utility and related structures businesses.

•Operating profit in Transportation Products increased primarily due to higher volumes in steel components.

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

Other, net (income) expense consists of the following items:

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

Three Months Ended June 30, 2022 versus Three Months Ended June 30, 2021

•Operating profit increased 57.0% driven by increased volumes, and the reduction in amortization of the fair value mark up of inventory in the previous year.

•Depreciation, depletion, and amortization expense increased primarily due to recent acquisitions, including the impact of the fair value mark up of long-lived assets.

Six Months Ended June 30, 2022 versus Six Months Ended June 30, 2021

•Operating profit increased 32.9% due to higher revenues and pricing, partially offset by higher depreciation, depletion, and amortization expense.

Utility, wind, and related structures $ 206.7 $ 191.6

(1) Depreciation and amortization are components of operating profit.

Three Months Ended June 30, 2022 versus Three Months Ended June 30, 2021

•Selling, general, and administrative costs down slightly and decreased as a percentage of revenues to 7.3% compared to 8.2% in the prior period.

Six Months Ended June 30, 2022 versus Six Months Ended June 30, 2021

•Revenues increased 15.5% primarily due to increased pricing across all product lines, partially offset by lower volumes.

•Selling, general, and administrative costs were down slightly and decreased as a percentage of revenues to 7.2% compared to 8.5% in the prior period.

•Operating profit increased 49.8% primarily due to higher revenues and improved margins in our utility structures business and improved pricing across all product lines. This increase was partially offset by a one-time customer resolution recognized in 2021.

(1) Depreciation and amortization are components of operating profit.

Three Months Ended June 30, 2022 versus Three Months Ended June 30, 2021

•Cost of revenues increased 28.8% driven by higher steel component volumes and higher hopper barge steel costs.

•Selling, general, and administrative costs were relatively unchanged and decreased as a percentage of revenues to 6.5% compared to 8.1% in the prior period due to overall higher volumes and pricing.

•Operating profit increased by 169.2% due to higher steel component volumes.

Six Months Ended June 30, 2022 versus Six Months Ended June 30, 2021

•Cost of revenues increased 9.2% driven by higher steel component volumes, partially offset by lower tank barge volumes.

•Selling, general, and administrative costs were up slightly but decreased as a percentage of revenues to 6.9% compared to 7.1% in the prior period due to overall higher volumes.

•Operating profit increased 14.8% due to higher steel component volumes, partially offset by lower tank barge volumes.

•We estimate corporate costs of approximately $14 to $15 million per quarter for the remainder of 2022, excluding non-recurring acquisition and divestiture-related expenses. We estimate full-year acquisition and divestiture-related expenses of approximately $10.5 to $11.5 million.

The following table summarizes our cash flows from operating, investing, and financing activities for the six months ended June 30, 2022 and 2021:

Net increase (decrease) in cash and cash equivalents $ 6.5 $ 4.5

Operating Activities. Net cash provided by operating activities for the six months ended June 30, 2022 was $111.2 million compared to $51.1 million for the six months ended June 30, 2021.

Investing Activities. Net cash required by investing activities for the six months ended June 30, 2022 was $98.7 million compared to $419.1 million for the six months ended June 30, 2021.

Other Investing and Financing Activities

Revolving Credit Facility and Senior Notes

As of June 30, 2022, we had $155.0 million of outstanding loans borrowed under the revolving credit facility and there were approximately $28.5 million of letters of credit issued, leaving $316.5 million available for borrowing.

In May 2022, the Company declared a quarterly cash dividend of $0.05 per share that was paid on July 29, 2022.

See Note 1 of the Notes to the Consolidated Financial Statements for information about recent accounting pronouncements.

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