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Investor Presentaiton

Reconciliation of Adjusted Net Income ($'s in Millions) (unaudited) Net Income Impairment charge on businesses subsequently divested Tax impact Impact of the fair value mark up of acquired inventory Tax impact Impact of U.S. tax reform Adjusted Net Income Three Months Ended September 30, 2019 2018 Nine Months Ended September 30, 2019 2018 $ 32.7 $ 3.2 23.2 $ 92.2 $ 48.0 23.2 (1.2) (1.2) 0.4 (0.1) 2.0 (0.5) $ 33.0 $ (0.7) 24.5 (0.7) $ 93.7 $ 69.3 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. 26 / Moving Infrastructure Forward - Investor Presentation, November 2019 ARCOSA
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