L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q3 2016 Earnings Presentation
20 slides from L.b. Foster's earnings presentation, Nov 7, 2016
Slide 1: 3Q16 Earnings Presentation
TUBULAR & ENERGY SERVICES PRODUCTS & www.lbfoster.com SERVICES RAIL 3Q16 Earnings Presentation PRODUCTS CONSTRUCTION November 7, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and oral statements regarding the subject matter may contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. We caution you that such statements involve risks, uncertainties and assumptions
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation discloses the following non-GAAP measures: • Earnings before interest, taxes, depreciation, and amortization ("EBITDA“); • EBITDA adjusted for asset impairments ("Adjusted EBITDA"); • Adjusted diluted earnings per share; and • Segment gross prof
Slide 4: Financial Highlights
Financial Highlights Metrics 3Q16 3Q15 Variance Sales $114.6 million $176.1 million $(61.4) million, (34.9)% Gross Profit Margin 17.3% 20.5% (320) Bps Adjusted EBITDA (1) $4.1 million $18.5 million $(14.4) million, (77.8)% Adjusted Net (Loss) Income $(0.00) $0.63 $(0.63) per Diluted Share (1) Operat
Slide 5: Rail Products and Services
Rail Products and Services 3Q16 Results Sales Non-GAAP Gross Profit Margin (1) ($ in millions) $(21.4) $(5.7) $(4.0) $88.0 22.2% 21.5% $56.9 3Q15 Rail Dist. NA Transit All Other 3Q16 3Q15 3Q16 Commentary Market Outlook • Sales decreased by 35.3% due to lower sales across 3Q16 Trends / Outlook: all s
Slide 6: Construction Products
Construction Products 3Q16 Results Sales Non-GAAP Gross Profit Margin (1) ($ in millions) $(20.3) $1.1 $54.1 $34.9 18.2% 17.7% 3Q15 Bridge and Concrete 3Q16 3Q15 3Q16 Piling Products Commentary Market Outlook • Sales decreased by 35.5% due to declines in piling 3Q16 Trends / Outlook: and, to a lesse
Slide 7: Tubular and Energy Services
Tubular and Energy Services 3Q16 Results Sales Non-GAAP Gross Profit Margin (1) ($ in millions) $(6.2) $(8.5) $3.6 $34.0 19.7% $22.9 2.9% 3Q15 Test & Other Precision 3Q16 3Q15 3Q16 Inspection Tubular Measurement Commentary Market Outlook • Sales decreased by 32.7% due to reduced sales across 3Q16 Tr
Slide 8: Key Takeaways
Key Takeaways • Market weakness remains in North American Freight Rail and Energy markets • Steel prices have been declining throughout the year and are having a notable impact on results • Accelerated cost cutting actions in light of continued weakness o Increased cost cutting target to exceed $12
Slide 9: Financial Overview
TUBULAR & ENERGY SERVICES PRODUCTS & www.lbfoster.com SERVICES RAIL Financial Overview PRODUCTS CONSTRUCTION
Slide 10: Consolidated Income Statement - QTD
Consolidated Income Statement - QTD Three Months Ended Three Months Ended September 30, 2016 September 30, 2015 Delta ($ in millions, except per share) $ % $ % $ % Sales $114.6 - $176.1 - $(61.4) (34.9)% Gross Profit 19.8 17.3% 36.0 20.5% (16.2) (45.0)% SG&A 19.8 17.3% 21.6 12.3% (1.8) (8.3)% Amorti
Slide 11: Segment Results
Segment Results Three Months Ended Three Months Ended September 30, 2016 September 30, 2015 Delta Sales $ % of Total $ % of Total $ % ($ in millions) Rail Products and Services $56.9 49.6% $88.0 50.0% $(31.1) (35.3)% Construction Products 34.9 30.4% 54.1 30.7% (19.2) (35.5)% Tubular Products and Ene
Slide 12: Consolidated Income Statement - YTD
Consolidated Income Statement - YTD Nine Months Ended Nine Months Ended September 30, 2016 September 30, 2015 Delta ($ in millions, except per share) $ % $ % $ % Sales $376.9 - $485.4 - $(108.4) (22.3)% Gross Profit 71.6 19.0% 103.8 21.4% (32.2) (31.0)% SG&A 65.9 17.5% 68.1 14.0% (2.2) (3.2)% Amorti
Slide 13: Balance Sheet
Balance Sheet ($ in millions) September 30, 2016 December 31, 2015 ASSETS (audited) Current assets: Cash and cash equivalents $3.7 $33.3 Accounts receivable – net 64.9 78.5 Inventories – net 91.4 96.4 Other current assets 13.5 6.3 Total current assets 173.5 214.5 Property, plant and equipment – net
Slide 14: Cash Flows
Cash Flows Nine Months Ended Nine Months Ended ($ in millions) September 30, 2016 September 30, 2015 Net loss and non-cash items $16.0 $36.4 Receivables 13.5 (1.5) Inventory 3.2 (1.3) Payables and deferred revenue (12.4) (16.4) Working capital subtotal 20.3 17.2 All other (8.4) (3.5) Operating cash
Slide 15: New Order Summary
New Order Summary New Orders Entered Delta Three Months Ended Three Months Ended ($ in millions) $ % September 30, 2016 September 30, 2015 Rail Products and Services $48.0 $62.0 $(14.0) (22.5)% Construction Products 44.0 44.3 (0.2) (0.5)% Tubular Products and Energy Services 18.8 39.3 (20.5) (52.2)%
Slide 16: Backlog Summary
Backlog Summary Backlog Delta September 30, September 30, ($ in millions) $ % 2016 2015 Rail Products and Services $53.4 $84.8 $(31.4) (37.0)% Construction Products 75.8 63.3 12.5 19.7% Tubular Products and Energy Services 14.6 26.2 (11.6) (44.2)% Total $143.8 $174.3 $(30.5) (17.5)% Note: Figures ma
Slide 17: Appendix: Non-GAAP Reconciliations
TUBULAR & ENERGY SERVICES PRODUCTS & www.lbfoster.com SERVICES RAIL Appendix PRODUCTS CONSTRUCTION Non-GAAP Reconciliations
Slide 18: Non-GAAP Financial Measures: Adjusted EBITDA
Non-GAAP Financial Measures: Adjusted EBITDA Three Months Ended September 30, September 30, ($ in millions) 2016 2015 Net loss as reported $(6.0) $(57.4) Interest expense, net 1.5 1.2 Income tax benefit (3.4) (12.8) Depreciation 3.3 3.8 Amortization 1.8 3.3 EBITDA (2.8) (61.8) Asset impairments 6.9
Slide 19: Non-GAAP Financial Measures: Segment Gross Profit
Non-GAAP Financial Measures: Segment Gross Profit ($ in millions) Tubular and Rail Products Construction Energy Three months ended September 30, 2016 and Services Products Services Total Sales $ 56.9 $ 34.9 $ 22.9 $ 114.6 Non-GAAP Segment Gross Profit 12.2 6.2 0.7 19.1 Segment and Allocated Selling
Slide 20: Adjusted Earnings Per Share
Adjusted Earnings Per Share Three Months Ended Nine Months Ended ($ in millions, except per share data) September 30, September 30, Adjusted Diluted (Loss) Earnings Per Share Reconciliation 2016 2015 2016 2015 Net loss, as reported $ (6.0) $ (57.4) $ (100.8) $ (47.8) Asset impairments, net of tax be