L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q1 2022 Earnings Presentation
28 slides from L.b. Foster's earnings presentation, May 10, 2022
Slide 1: L.B. Foster Company Q1 2022 Earnings Presentation
L.B. Foster Company Q1 2022 Earnings Presentation Nasdaq - FSTR May 10, 2022
Slide 2: Safe Harbor Disclaimer
Safe Harbor Disclaimer Safe Harbor Statement Non-GAAP Financial Measures This investor presentation discloses the following non-GAAP measures: This presentation may contain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section
Slide 3: Company Overview
Company Overview A global solutions provider of engineered and manufactured products and services to build and support infrastructure NASDAQ: FSTR 2021 Net Sales by Region Who we are ($ in millions) • Headquartered in Pittsburgh, Pennsylvania $37 • Locations throughout North America, South 1902 39 ~
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q1 2022 Earnings Presentation 4 May 10, 2022
Slide 5: Executive Summary – Quarterly Highlights
Executive Summary – Quarterly Highlights Gross profit margins Increased working Commercial markets stabilizing, but reflect capital needs funding Continuing focus on continue to improve challenging projected revenue Precast Concrete and with growth in orders inflationary and increase and “just in Ra
Slide 6: Financial Review
Financial Review Bill Thalman Senior Vice President and CFO L.B. Foster Q1 2022 Earnings Presentation 6 May 10, 2022
Slide 7: First Quarter Results
First Quarter Results As of and for the quarter ended March 31, 2022: YoY Δ $ in millions, unless otherwise stated • Adjusting for Piling, sales up $3.5M, or 3.7%, YoY1 SALES 98.8 (17.3) • Gross profit margins stabilizing, albeit down 190 GROSS PROFIT 16.4 (2.4) bps YoY1 adjusting for Piling GROSS P
Slide 8: Rail, Technologies, and Services – Q1 Results
Rail, Technologies, and Services – Q1 Results Rail segment orders at highest level reported since Q2 2018 Rail, Technologies Technologies, Sales GP Margin and and Services Services (3.8%) +40 bps $80 25% $60 20% 15% $40 $66 $64 10% 19.3% 19.7% $20 5% $0 0% Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Sales inc
Slide 9: Precast Concrete Products – Q1 Results
Precast Concrete Products – Q1 Results Focused on improving operating margins and fulfilling robust order book Precast Concrete Sales GP Margin Products +18.4% (330) bps $20 25% $15 20% 15% $10 $15 10% 19.6% $13 16.3% $5 5% $0 0% Q1 2021 Q1 2022 Q1 2021 Q1 2022 • Sales levels reflect continued stren
Slide 10: Steel Products and Measurement – Q1 Results
Steel Products and Measurement – Q1 Results 1 Potential for improving demand from bridge repair projects and adjacent market applications for C&M solutions Steel Products and Sales GP Margin Measurement +22.7% (690) bps $25 15% $20 10% $15 14.3% $10 $20 $16 5% $5 7.4% $0 0% Q1 2021 Q1 2022 Q1 2021 Q
Slide 11: Focus on Liquidity
Focus on Liquidity P Available sources of funding support expected needs for operations and growth initiatives March 31, 2022 Net Debt1 and Adj. Net Leverage Ratio1 Key Metrics ($ in millions) $70 2.0x 1.7x • Net debt totaled $29.4M, down $2.4M YoY; up 1.7x 1.8x Adjusted net $8.5M from end of 2021 $
Slide 12: Orders, Revenue and TTM Book to Bill Ratios
Orders, Revenue and TTM Book to Bill Ratios Consolidated New Orders and Revenue Rail, Technologies, and Services $175 ($ in millions) ($ in millions) $100 $150 $155 $91 $75 $89 $125 $136 $139 $139 $135 $84 $130 $116 $71 $74 $71 $100 $113 $69 $66 $99 $50 $64 $95 $58 $75 $50 $25 $25 $0 $0 Q1 2021 Q2 2
Slide 13: Backlog Trends
Backlog Trends Consolidated Backlog1 Rail, Technologies, and Services Backlog ($ in millions) ($ in millions) $250 $125 $200 $100 $150 $75 $240 $245 $122 $123 $220 $230 $210 $103 $110 $100 $50 $97 $50 $25 $0 $0 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Precast C
Slide 14: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q1 2022 Earnings Presentation 14 May 10, 2022
Slide 15: Market and Business Outlook
Market and Business Outlook Momentum from federal infrastructure funding should translate into improving demand in our core markets • Strong order and robust backlog levels provide positive outlook for revenue improvement across the majority of the portfolio as 2022 progresses • Line of sight to key
Slide 16: Building Momentum
Building Momentum Long-Term Vision (2025) > A global solutions provider of engineered, manufactured products and services that REVENUE ~$600M builds and supports INFRASTRUCTURE Organic Growth ~$100M Acquisitions ~$150M GROSS PROFIT MARGIN ~21.0% ADJ. EBITDA ~$50M Adj. EBITDA Margin ~8.0% L.B. Foster
Slide 17: Thank you!
Thank you! L.B. Foster Q1 2022 Earnings Presentation May 10, 2022 L.B. Foster Q1 2022 Earnings Presentation 17 May 10, 2022
Slide 18: Appendix
Appendix L.B. Foster Q1 2022 Earnings Presentation 18 May 10, 2022
Slide 19: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets March 31, 2022 December 31, 2021 Assets ($ in millions) Current assets: Cash and cash equivelants $ 6.2 $ 10.4 Accounts receivable - net 59.1 55.9 Contract assets 34.3 36.2 Inventories - net 67.8 62.9 Other current assets 19.6 14.1 Total current assets $ 187.1 $ 179.
Slide 20: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity March 31, 2022 December 31, 2021 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 45.5 $ 41.4 Deferred revenue 19.3 13.4 Other accrued liabilities 24.9 31.3 Current maturities of long-term debt 0.1 0.1 Total
Slide 21: Condensed Income Statement – Q1
Condensed Income Statement – Q1 Three Months Ended Three Months Ended Delta March 31, 2022 March 31, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 98.8 $ 116.1 $ (17.3) (14.9%) Gross profit 16.4 16.6% 18.8 16.2% (2.4) (12.7%) SG&A 17.3 17.5% 18.0 15.5% (0.7) (4.0%)
Slide 22: Condensed Cash Flows
Condensed Cash Flows Three Months Ended Three Months Ended ($ in millions) March 31, 2022 March 31, 2021 Net loss and other non-cash items from continuing operations $ 1.4 $ 2.3 Receivables (4.6) (7.2) Contract assets 0.3 0.1 Inventory (4.0) (0.5) Payables and deferred revenue 10.6 19.6 Trade Workin
Slide 23: Orders and Backlog
Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) March 31, 2022 March 31, 2021 Delta Rail, Technologies, and Services $ 91.4 $ 68.7 $ 22.7 33.1% Precast Concrete Products 19.1 30.8 (11.6) (37.8%) Steel Products and Measurement 24.9 36.2 (11.3) (31.2%) Total $ 135.4 $ 135.6
Slide 24: Segment Results – Q1
Segment Results – Q1 Three Months Ended Three Months Ended Delta Segment Sales March 31, 2022 March 31, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 63.7 $ 66.2 $ (2.5) (3.8%) Precast Concrete Products 15.0 12.7 2.3 18.4% Steel Products and Measurement 20.1 37.2 (17.1) (46.0%) Tot
Slide 25: Non-GAAP Measure: Funding Capacity
Non-GAAP Measure: Funding Capacity ( $ in millions, unless other w ise noted) March 31, 2022 Cash & Cash Equivalents $ 6.2 Total Availability Under the Credit Facility 130.0 Outstanding Borrowings on Revolving Credit Facility (35.5) Letters of Credit Outstanding (0.6) Net Availability Under the Revo
Slide 26: Non-GAAP Measure: Net Debt and Adj. Leverage Ratio
Non-GAAP Measure: Net Debt and Adj. Leverage Ratio March 31, December 31, March 31, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 ($ in millions) Outstanding Borrowings on Revolving Credit Facility $ 35.5 $ 31.1 $ 36.5 $ 44.8 $ 33.9 $ 74.0 Term Loan Outstanding - - - - 23.8 -
Slide 27: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Twelve Months Ended ($ in millions) March 31, December 31, March 31, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 Net income (loss) from continuing operations, as reported $ 3.2 $ 3.5 $ 24.6 $ 25.8 $ 48.0 $ (30.6) Interest expense, net 2.5 3.
Slide 28: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA Three Months Ended ($ in millions) March 31, March 31, 2022 2021 Net loss as reported $ (1.6) $ (1.3) Interest expense, net 0.4 0.9 Income tax benefit (0.5) (0.3) Depreciation expense 1.9 2.0 Amortization expense 1.4 1.5 Total EBITDA $ 1.7 $ 2.7 L.B. Foster Q1 2022 Earnings