Business
Strategic Transformation Initiatives at L.B. Foster Drive Improved First Quarter Operating Results; Company Reaffirms 2023 Financial Guidance
First quarter net sales of $115.5 million up 16.9% year over year (11.5% organic); gross profit of $23.3 million up 41.6% year over year, with gross margins
About this update from L.b. Foster Company
[{"type":"text","content":"First quarter net sales of $115.5 million up 16.9% year over year (11.5% organic); gross profit of $23.3 million up 41.6% year over year, with gross margins improving 360 bps to 20.2%.Completed sale of Chemtec Precision Measurement Products and Systems business (\"Chemtec\") during the quarter, reducing energy market exposure in line with strategic transformation plan.First quarter net loss of $2.2 million unfavorable $0.6 million year over year on $2.0 million Chemtec sale loss; first quarter adjusted EBITDA1 of $4.5 million, up $2.8 million, or 171.6%, year over year.Solid cash generation during the quarter with net debt1 reduction of $11.5 million; Gross Leverage Ratio1 of 2.4x down from 2.8x at the start of the quarter.New orders1 in the first quarter were $139.5 million, up 3.0% over last year, with a book-to-bill ratio1 of 1.21 : 1; backlog1 finished the first quarter at $259.9 million, up 6.2% year over year. PITTSBURGH, May 09, 2023 (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 first quarter operating results. CEO Comments John Kasel, President and Chief Executive Officer, commented, “We are pleased with the strong start to 2023, continuing the positive momentum we established in the second half of last year. Order rates and backlog continued at robust levels highlighting the resilience of our key end markets. The impact of our strategic transformation is evident in the first quarter results, highlighted by the double-digit organic growth in revenues and expanded operating margins with EBITDA margins more than doubling year over year. Improving gross margins both in our legacy business and from the impact of our portfolio changes has been a key focus area for us and we are encouraged by the strong results over the past several quarters. We expect these favorable trends to continue moving through 2023.” Mr. Kasel continued, “As previously announced, we sold our Chemtec business at the end of the first quarter, generating $5.3 million in proceeds at closing. These proceeds, along with $6.2 million in free cash flow1 in the quarter, resulted in an $11.5 million reduction to our net debt, which stood at $77.5 million at quarter end. We remain focused on reducing indebted...