Federal Signal Corporation · NYSE:FSS
Federal Signal — Q1 2021 Earnings Presentation
18 slides from Federal Signal's earnings presentation, May 4, 2021
Slide 1: Federal Signal Q1 2021 Earnings Call
Federal Signal Q1 2021 Earnings Call May 4, 2021 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer
Slide 2: Safe Harbor
Safe Harbor This presentation contains unaudited financial information and various forward‐looking statements as of the date hereof and we undertake no obligation to update these forward‐ looking statements regardless of new developments or otherwise. Statements in this presentation that are not his
Slide 3: Q1 Highlights
Q1 Highlights * • Net sales of $279 M, vs. $286 M • Operating income of $27.8 M, vs. $32.3 M • Adjusted EBITDA of $41.2 M, vs. $43.9 M • Adjusted EBITDA margin of 14.8%, compared to 15.3% • GAAP EPS of $0.36, vs. $0.38 • Adjusted EPS of $0.38, vs. $0.39 • Record quarterly orders of $384 M, up $80 M,
Slide 4: Group and Corporate Results
Group and Corporate Results $ millions, except % Q1 2021 Q1 2020 % Change ESG Orders 324.2 237.5 37% Sales 228.1 233.0 -2% Operating income 27.1 29.4 -8% Operating margin 11.9% 12.6% Adjusted EBITDA 39.3 40.0 -2% Adjusted EBITDA margin 17.2% 17.2% SSG Orders 59.9 66.4 -10% Sales 50.7 53.1 -5% Operat
Slide 5: Consolidated Statement of Operations
Consolidated Statement of Operations $ millions, except % and per share Q1 2021 Q1 2020 $ Change % Change Net sales $ 278.8 $ 286.1 $ (7.3) -3% Gross profit 68.8 74.8 (6.0) -8% SEG&A expenses 40.8 42.2 (1.4) -3% Acquisition and integration related expenses 0.2 0.3 (0.1) -33% Operating income 27.8 32
Slide 6: Adjusted Earnings per Share
Adjusted Earnings per Share ($ in millions) Three Months Ended March 31, 2021 2020 Net income, as reported $ 22.2 $ 23.4 Add: Income tax expense 5.0 7.2 Income before income taxes 27.2 30.6 Add: Acquisition and integration-related expenses 0.2 0.3 Coronavirus-related expenses (1) 0.9 0.4 Purchase ac
Slide 7: Financial Strength and Flexibility
Financial Strength and Flexibility * • Cash and cash equivalents of $54.8 M • Net debt of ~$168 M ** • In July 2019, we executed a five‐year, $500 M revolving credit facility, Strong capital with flexibility to increase by additional $250 M for acquisitions structure • No debt maturities until July
Slide 8: CEO Remarks – Market Conditions
CEO Remarks – Market Conditions • Domestic employee vaccination rates ahead of national average, with over 60% of Illinois‐based employees now fully vaccinated • Q1 orders at record levels, surpassing previous high by over $50 M, contributing to record backlog at end of quarter Strength across mos
Slide 9: CEO Remarks – Growth Initiatives
CEO Remarks – Growth Initiatives • Safe digging trends improving with uptick in industrial markets TRUVAC demonstrations up 70% Education efforts positively impacting sewer cleaner demand • Aftermarket progress continues Q1 aftermarket revenues up 6% YoY; increased to ~27% of ESG’s revenues in
Slide 10: CEO Remarks – Growth Initiatives
CEO Remarks – Growth Initiatives • $1.9 trillion of economic stimulus with $350 billion earmarked to go to state, local and territorial governments. Among other things, stimulus package targets the maintenance of essential infrastructure, such as sewer systems and streets • As a provider of equipmen
Slide 11: Maintaining 2021 Outlook
Maintaining 2021 Outlook Adjusted EPS* ranging from $1.73 to $1.85 Represents increase of 4% to 11% over 2020* Key Full‐Year Assumptions Revenue growth Effective income tax rate of ~24%, Double‐digit improvement in pre‐tax earnings including estimated discrete tax benefits Depreciation and a
Slide 12: Federal Signal Q1 2021 Earnings Call Q&A
Federal Signal Q1 2021 Earnings Call Q&A May 4, 2021 Jennifer Sherman, President & Chief Executive Officer Ian Hudson, SVP, Chief Financial Officer 12
Slide 13: Investor Information
Investor Information Stock Ticker ‐ NYSE:FSS Company website: federalsignal.com/investors HEADQUARTERS 1415 West 22nd Street, Suite 1100 Oak Brook, IL 60523 INVESTOR RELATIONS 630‐954‐2000 Ian Hudson SVP, Chief Financial Officer IHudson@federalsignal.com 13
Slide 14: Appendix
Federal Signal Q1 2021 Earnings Call Appendix 14
Slide 15: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA $ millions, except % Q1 2021 Q1 2020 Net income $ 22.2 $ 23.4 Add: Interest expense 1.1 1.5 Acquisition and integration-related expenses 0.2 0.3 Coronavirus-related expenses 0.9 0.4 Purchase accounting effects * 0.1 0.1 Other (income) expense, net (0.5) 0.2 Income tax ex
Slide 16: Segment Adjusted EBITDA
Segment Adjusted EBITDA ESG $ millions, except % Q1 2021 Q1 2020 Operating Income $ 27.1 $ 29.4 Add: Acquisition and integration-related expenses 0.0 0.1 Coronavirus-related expenses 0.8 0.4 Purchase accounting effects * 0.1 0.1 Depreciation and amortization 11.3 10.0 Adjusted EBITDA $ 39.3 $ 40.0 N
Slide 17: Non-GAAP Measures
Non‐GAAP Measures • Adjusted net income and earnings per share (“EPS”) ‐ The Company believes that modifying its 2021 and 2020 net income and diluted EPS provides additional measures which are representative of the Company’s underlying performance and improves the comparability of results between re
Slide 18: Federal Signal
FF FEDERAL SIGNAL Moves. Cleans. Protects.