Business
L.B. Foster Exceeds 2023 Guidance; Delivers Strong Cash Flow, Improves Leverage, and Returns Capital to Shareholders; Establishes 2024 Guidance and Reiterates 2025 Goals Aligned with Strategic Transformation
Full year 2023 net sales of $543.7 million up 9.3% over prior year (up 11.7% organically) and $3.7 million above the upper end of guidance range; gross
About this update from L.b. Foster Company
[{"type":"text","content":"Full year 2023 net sales of $543.7 million up 9.3% over prior year (up 11.7% organically) and $3.7 million above the upper end of guidance range; gross margins expanded 270 basis points to 20.7%.Fourth quarter net sales of $134.9 million down 1.7% from prior year quarter (up 7.7% organically1); gross margins expanded 200 basis points to 21.5%.Full year 2023 net cash flow from operations of $37.4 million was favorable $48.0 million over 2022, with free cash flow1 totaling $33.0 million and $2.3 million in stock repurchases representing approximately 1.2% of its outstanding common stock.Net debt1 declined $36.3 million in 2023, finishing at $52.7 million and gross leverage per the Company’s credit agreement1 declined from 2.8x to 1.7x during the year.Fourth quarter net loss of $0.5 million, favorable $43.5 million over the prior year quarter; full year 2023 net income of $1.3 million, favorable $47.0 million over prior year. The year-over-year improvement for both periods included the impact of a $37.9 million deferred tax asset valuation allowance and asset impairment charges of $8.0 million in the fourth quarter of 2022.Fourth quarter adjusted EBITDA1 of $6.1 million, unfavorable $1.4 million versus the prior year quarter; full year 2023 adjusted EBITDA of $31.8 million, favorable $7.6 million over prior year and $0.8 million above the upper end of its guidance.Fourth quarter new orders1 of $105.5 million decreased 23.4% year over year (down 15.6% organically1); backlog1 of $213.8 million remains healthy, despite divestitures contributing a $23.2 million decline year over year. The 2023 book-to-bill ratio was 0.97:1:00.The Company announced full year financial guidance for 2024 with net sales expected to range from $525.0 million to $560.0 million (representing organic growth of approximately 0.0% to 6.0%), adjusted EBITDA ranging from $34.0 million to $39.0 million (representing approximately 6.5% to 7.0% of sales), and free cash flow ranging from $12.0 million to $18.0 million, with capital expenditures expected to represent approximately 2.0% to 2.5% of sales. PITTSBURGH, March 05, 2024 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR), a global technology solutions provider of products and services for the rail and infrastructure markets (the \"Company\"), today reported its 2023 fourth quarter and full year operating r...