L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q1 2020 Earnings Presentation
23 slides from L.b. Foster's earnings presentation, May 5, 2020
Slide 1: Q1 2020 Earnings Presentation
Q1 2020 Earnings Presentation May 5, 2020 Bob Bauer – President and CEO Jim Maloney – Senior Vice President and CFO
Slide 2: Safe Harbor Statement 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 the This investor presentation discloses the following non-GAAP measures: United States Private Securities Litigation Re
Slide 3: Who we are
Who we are NASDAQ: FSTR 2019 Net Sales by Region ($ in millions) • Leading manufacturer and distributor of products and provider of services for the transportation and energy infrastructure markets $41.9 • Headquartered in Pittsburgh, Pennsylvania 1902 54 1,330 $1.62 * $529.4 $655 • Locations throug
Slide 4: Manufacturing sites deemed essential; strong balance sheet
• LB Foster’s manufacturing sites have been deemed “essential” in all jurisdictions in which they operate. • The Company’s manufacturing sites have continued to operate in light of the COVID-19 pandemic, and are navigating any supply chain, customer, employee, or partner delays or disruptions as a r
Slide 5: Crude oil demand decline impacts Tubular & Energy Services
• The significant decline in demand for crude oil has adversely impacted the Tubular & Energy Services Segment. • Crude oil prices have declined as demand has dropped substantially due to a reduction in worldwide travel and mobility as a result of the COVID-19 pandemic. • Mid-stream focused business
Slide 6: Metrics Q1 2020 vs Q1 2019
Metrics ($ in millions, unless otherwise noted; Q1 2020 Q1 2019 Delta except per share data) • COVID-19 negatively impacted operating results in Sales $128.8 $150.5 $(21.7) (14.4)% Q1; during this time, the Company experienced disruption in its supply chains and general weakness in demand as stay-at
Slide 7: Backlog and New Orders Entered
Backlog ($ in millions) Q1 2020 Q4 2019 Delta Rail Products and Services $108.9 $103.7 $5.2 5.0% Construction Products $102.1 $92.3 $9.8 10.6% • Year-over-year order decline was Tubular and Energy Services $26.7 $34.1 $(7.4) (21.7)% driven by the weak energy market, lower transit rail projects in th
Slide 8: Free Cash Flow Yield
Free Cash Flow Yield • Robust cash flows from operating ($ in millions, unless otherwise noted; except LTM Q1 2020 2019 2018 activities drives double-digit free per share data) cash flow yields on a historic basis. Cash provided by operating $36.0 $29.3 $26.0 • Management’s focus on working activiti
Slide 9: Total available funding capacity
($ in millions, unless otherwise noted) March 31, 2020 December 31, 2019 Cash & Cash Equivalents $6.4 $14.2 • Total available funding Total Availability Under the Credit Facility $140.0 $140.0 capacity of $104.9 million as of March 31, 2020 Outstanding Borrowings on Revolving Credit Facility $(40.7)
Slide 10: Net Debt
CHANGE IN NET DEBT TO ADJUSTED EBITDA 1 4.5x • Focus on deleveraging through optimizing 4.0x $100.0 $92.3 operating cash flows. 3.5x • Net debt levels continue $80.0 to remain lower than past 3.0x Net Debt (in millions) $64.7 years, aligning with the 2.4x $57.8 Company’s debt reduction 2.5x $60.0 st
Slide 11: Business Review
LBFoster. BUSINESS REVIEW
Slide 12: Q1 2020 Net Sales by Segment: Rail Products and Services
Revenue Q1 2020 Net Sales by ($ in millions) Segment ($ in millions) • The Rail Technologies business had a $100 9.7% decline in revenue, which in turn negatively impacted gross margins. $50 $76 $70 $70 $0 • These declines were driven by reduced Rail Construction Tubular Q1 2019 Q1 2020 Friction Man
Slide 13: Q1 2020 Net Sales by Segment: Construction Products
Revenue Q1 2020 Net Sales by ($ in millions) Segment ($ in millions) • The Precast Concrete Boise, ID facility $40 had 28% less revenue when compared to the Spokane, WA facility, which $37 $29 $20 $29 resulted in declining gross margins. $0 • This reduction in revenue was Q1 2019 Q1 2020 Rail Constr
Slide 14: Q1 2020 Net Sales by Segment: Tubular and Energy Services
Revenue Q1 2020 Net Sales by • The worldwide COVID-19 pandemic and ($ in millions) Segment ($ in millions) associated reduction in demand due to reduced travel and movement of goods $40 throughout the world has caused U.S. exploration and production companies $37 $30 $20 $30 to reduce operations and
Slide 15: Appendix
r APPENDIX LBFoste
Slide 16: Three Months Ended March 31, 2020 Results
Three Months Ended Three Months Ended Delta March 31, 2020 March 31, 2019 ($ in millions, except per share) $ % of Sales $ % of Sales $ % Sales $ 128.8 — $ 150.5 — $ (21.7) (14.4)% Gross profit 21.7 16.8 % 29.2 19.4 % (7.5) (25.7)% SG&A 21.3 16.6 % 21.9 14.6 % (0.6) (2.7)% Amortization expense 1.5 1
Slide 17: Sales and Segment Profit
Three Months Ended Three Months Ended Delta Sales March 31, 2020 March 31, 2019 ($ in millions) $ % of Sales $ % of Sales $ % Rail Products and Services $ 70.2 54.5 % $ 75.7 50.3% $ (5.5) (7.3)% Construction Products 29.0 22.5% 37.3 24.8% (8.3) (22.3)% Tubular and Energy Services 29.5 23.0% 37.4 24.
Slide 18: Assets
Assets March 31, 2020 December 31, 2019 ($ in millions) (audited) Current assets: Cash and cash equivalents $ 6.4 $ 14.2 Accounts receivable - net 78.2 78.6 Inventories - net 113.5 119.3 Other current assets 9.1 4.6 Total current assets 207.2 216.7 Property, plant, and equipment - net 82.9 82.3 Oper
Slide 19: Liabilities and Stockholders' Equity
Liabilities and Stockholders’ Equity March 31, 2020 December 31, 2019 ($ in millions) (audited) Current Liabilities: Accounts payable and accrued liabilities $ 104.8 $ 113.8 Current maturities of long-term debt 2.7 2.9 Total current liabilities 107.5 116.7 Long-term debt 61.5 55.3 Other long-term li
Slide 20: Cash Flow Summary
Three Months Ended Three Months Ended ($ in millions) March 31, 2020 March 31, 2019 Net (loss) income and non-cash items $ 2.9 $ 8.8 Receivables (0.4) (13.2) Inventory 3.6 (17.5) Payables and deferred revenue 2.8 20.2 Working capital subtotal 6.0 (10.4) All other (15.8) (12.0) Operating cash flow (6
Slide 21: EBITDA and Adjusted EBITDA Reconciliation
Three Months Ended Twelve Months Ended ($ in millions) March 31, 2020 March 31, 2019 March 31, 2020 December 31, 2019 Net (loss) income, as reported $ (1.9) $ 3.7 $ 37.0 $ 42.6 Interest expense - net 0.8 1.4 4.4 4.9 Income tax (benefit) expense (0.8) 0.6 (26.6) (25.2) Depreciation 2.7 2.8 11.0 11.1
Slide 22: Adjusted Net Income and EPS Reconciliation
Year Ended ($ in millions, unless otherwise noted except per share data) December 31, 2019 Net income, as reported $ 42.6 Relocation and closure costs, net of tax of $0.8 2.6 U.S pension settlement expense, net of tax of $0.6 1.6 Deferred tax asset valuation allowance reversal (29.6) Adjusted Net in
Slide 23: Net Debt Reconciliation
March 31, 2020 December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Total debt $ 64.2 $ 58.2 $ 75.0 $ 130.0 Less cash and cash equivalents (6.4) (14.2) (10.3) (37.7) Total net debt $ 57.8 $ 44.0 $ 64.7 $ 92.3 L.B. Foster Company (FSTR) Q1 2020 Earnings Presentation Note figures may