L.B. Foster Company · NASDAQ:FSTR
L.B. Foster — Merger or Acquisition (September 2020)
12 slides from L.B. Foster's merger presentation, Sep 28, 2020
Slide 1: Investor Update Call: IOS Test and Inspection Services Transaction
Investor Update Call IOS Test and Inspection Services Transaction September 28, 2020 Robert Bauer – President and CEO James Kempton – Corporate Controller and Principal Accounting Officer
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement Non-GAAP Financial Measures This presentation and oral statements regarding the subject matter may contain “forward-looking” statements within the meaning of Section 21E of the This investor presentation discloses the following non-GAAP measures: Securities Exchange Act of 1934
Slide 3: Sold IOS Test and Inspection Services business on September 4, 2020
• Sold IOS Test and Inspection Services business on September 4, 2020. • Strategic exit of the volatile and challenging upstream energy market by L.B. Foster Company. • Eliminates the dilutive effect of the Test and Inspection Services business results on the Company’s performance. • Executed as a s
Slide 4: Safe Deployment of Tubulars and Measurement Solutions
Well Head Gathering Transport Refining Retail Test and Inspection Protective Coatings Services Measurement Solutions Safe Deployment of Tubulars Measurement Solutions Keeping tubulars in production on critical drilling and pipeline applications Critical measurement and control systems for transport
Slide 5: U.S. Oil Prices
U.S. Oil Prices $120 West Texas Intermediate $100 Prices (Cushing, OK, $/Barrel) • The recent collapse in oil demand associated with reduced travel from the COVID-19 pandemic has led to a severe drop $80 in demand for the Test and Inspection Services business. • Once promising “shale boom” has becom
Slide 6: U.S. Rig Count - 2012 to Present
• 2015 oil price war started by Saudi Arabia leads to dramatic U.S. Rig Count - 2012 to Present reduction in U. S. drilling. 2,500 Saudi Oil Price • First round of “fallout” occurs and once booming areas like Cuts Price of WTI the Bakken in North Dakota are hit hard. 2,000 below $0 • Operators begin
Slide 7: Impact of Test and Inspection Services business on results
• The impact of Test and Inspection Services business on gross profit, Test and Inspection Services Results gross profit margins, and EBITDA ($ in millions, unless otherwise Six Months Ended Twelve Months Ended Six Months Ended results were primarily due to indicated) June 30, 2019 December 31, 2019
Slide 8: Sale of the Equity Interests in the IOS Operating Entities
• Sale of the Equity Interests in the Operating Entities of the IOS Test and Inspection Services business. • Received $4.0 million in cash proceeds from an unaffiliated buyer. • Sale agreement included limited representations and warranties and caps on indemnification. • Estimated pre-tax loss on sa
Slide 9: Focus on Core Competencies With Better Opportunities
• Focus on Core Competencies With Better Opportunities. • The sale represents the Company’s strategic shift away from the upstream oil and gas market. • Management will be able to identify and focus on opportunities that bring growth to the core businesses. • Divestiture Driving a Positive Change to
Slide 10: Thank You
r LBFoste THANK YOU
Slide 11: Appendix
r APPENDIX LBFoste
Slide 12: IOS Test and Inspection Results
IOS Test and Inspection Results ($ in millions) Six Months Ended Twelve Months Ended Six Months Ended June 30, 2019 December 31, 2019 June 30, 2020 Loss contributed to Tubular and Energy Segment Profit $ (2.1) $ (8.0) $ (10.7) Interest expense - net 0.0 0.0 0.0 Depreciation expense 1.5 3.1 1.4 Amort
L.B. Foster Company — Merger or Acquisition (September 2020) on 6ix