L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q3 2022 Earnings Presentation
38 slides from L.b. Foster's earnings presentation, Nov 8, 2022
Slide 1: L.B. Foster Company Q3 2022 Earnings Presentation
L.B. Foster Company Q3 2022 Earnings Presentation Nasdaq - FSTR November 8, 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 2021 Net Sales by Region Who we are NASDAQ: FSTR ($ in millions) • Headquartered in Pittsburgh, Pennsylvania • Locations throughout North America, South 41 ~1,400 $37
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q3 2022 Earnings Presentation 4 November 8, 2022
Slide 5: Executive Summary – Quarterly Highlights
Executive Summary – Quarterly Highlights Portfolio changes Adjusted EBITDA1 of should help maintain Significant portfolio Focused efforts on $9.3M reflects an 111% steady to improving moves in the quarter, margin improvement increase vs. last year demand despite including acquisition delivered expan
Slide 6: Strategic Playbook – Progress on Key Workstreams
Strategic Playbook – Progress on Key Workstreams Playbook Playbook Playbook Item What We Mean Double down on Precast Concrete Expand share of turnkey building market; expand with organic and inorganic programs 1 Drive step-change Friction Management Growth of onboard market, share in existing applic
Slide 7: Business Transformation Update – Recent Transactions
Business Transformation Update – Recent Transactions We are executing our portfolio transformation in line with our strategic playbook. Rail Technologies - Acquisitions Both businesses support the Company’s Technology Services and Solutions growth platform Completed acquisition of U.K. based Intelli
Slide 8: Financial Review
Financial Review Bill Thalman Senior Vice President and CFO L.B. Foster Q3 2022 Earnings Presentation 8 November 8, 2022
Slide 9: Third Quarter Results
Third Quarter Results As of and for the quarter ended September 30, 2022: YoY Δ • Net sales increased 8.7% organically (11.8% $ in millions, unless otherwise stated adjusted for Crossrail) and 5.5% from SALES 130.0 0.0 acquisitions, offset by 14.3% from divestitures. GROSS PROFIT 23.1 0.8 • Crossrai
Slide 10: Year over Year Increase in Sales and Adj. EBITDA
Year over Year Increase in Sales and Adj. EBITDA 1 Changes to Sales Changes to Adjusted EBITDA1 ($ in millions) ($ in millions) $10 $150 $7.2 $18.6 $9 $1.5 $9.3 $4.0 $15.3 6.9% of adj. sales1 $8 $125 $130.1 $130.0 $3.4 $7 $100 $6 $5 $75 $4 $4.4 3.4% of adj, sales1 $50 $3 $2 $25 $1 $0 $0 Q3 2021 Sale
Slide 11: Rail, Technologies, and Services – Q3 Results
Rail, Technologies, and Services – Q3 Results Strong increase in sales and profitability adjusting for the impact of the Crossrail settlement Rail, Technologies Technologies, Sales GP Margin and and Services Services 4.6% (150) bps $100 25% $75 20% 15% $50 $74 $77 10% 18.8% 17.3% $25 5% $0 0% Q3 202
Slide 12: Precast Concrete Products – Q3 Results
Precast Concrete Products – Q3 Results Improved legacy volumes and margins coupled with acquisition of VanHooseCo expanding addressable market Precast Concrete Sales GP Margin Products +60.6% +450 bps $40 25% $30 20% 15% $20 $29 10% 19.6% $10 15.1% $18 5% $0 0% Q3 2021 Q3 2022 Q3 2021 Q3 2022 • Net
Slide 13: Steel Products and Measurement – Q3 Results
Steel Products and Measurement – Q3 Results Lower sales and higher margins due to Piling divestiture, with improving outlook for coatings business Steel Products and Sales GP Margin Measurement (37.6%) +230 bps $40 20% $30 15% $20 $38 10% 14.8% 17.1% $10 $24 5% $0 0% Q3 2021 Q3 2022 Q3 2021 Q3 2022
Slide 14: Year to Date Results
Year to Date Results As of and for the nine months ended September 30, 2022: YoY Δ • Sales declined 15.4% due to divestitures, partially $ in millions, unless otherwise stated offset by a 3.5% organic sales increase and 1.8% SALES 360.3 (40.3) increase from acquisitions. GROSS PROFIT 62.8 (4.4) • Gr
Slide 15: Focus on Liquidity
Focus on Liquidity P Credit agreement amendment allows sufficient funding for operations and pursuit of growth opportunities September 30, 2022 Net Debt1 and Adj. Net Leverage Ratio1 Key Metrics • Net debt1 totaled $94.0M, up $67.9M YoY ($ in millions) $100 5.0x due to acquisition related activity.
Slide 16: 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 $91 $93 $125 $139 $141 $137 $75 $84 $130 $135 $132 $130 $82 $74 $77 $100 $113 $71 $99 $50 $64 $95 $58 $57 $75 $50 $25 $25 $0 $0 Q3 2021 Q4 2
Slide 17: Backlog Trends
Backlog Trends Consolidated Backlog Rail, Technologies, and Services Backlog ($ in millions) ($ in millions) $300 $150 $250 $125 $200 $100 $150 $75 $251 $273 $123 $132 $232 $245 $110 $109 $100 $210 $50 $97 $50 $25 $0 $0 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022
Slide 18: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q3 2022 Earnings Presentation 18 November 8, 2022
Slide 19: Market and Business Outlook
Market and Business Outlook Quotation activity from Infrastructure Investment and Jobs Act increasing; revenue expected in 2023 • Maintaining optimistic outlook regarding longer-term trends in core end markets of freight and transit rail and general infrastructure • Overall quotation levels and dema
Slide 20: 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 ~$50M Adj. EBITDA Margin ~8.0% L.B. Foster
Slide 21: Thank you!
Thank you! L.B. Foster Q3 2022 Earnings Presentation November 8, 2022 L.B. Foster Q3 2022 Earnings Presentation 21 November 8, 2022
Slide 22: Appendix
Appendix L.B. Foster Q3 2022 Earnings Presentation 22 November 8, 2022
Slide 23: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets September 30, 2022 December 31, 2021 Assets ($ in millions) Current assets: Cash and cash equivelants $ 4.9 $ 10.4 Accounts receivable - net 80.7 55.9 Contract assets 32.0 36.2 Inventories - net 85.1 62.9 Other current assets 13.7 14.1 Total current assets $ 216.4 $
Slide 24: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity September 30, 2022 December 31, 2021 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 51.2 $ 41.4 Deferred revenue 22.2 13.4 Other accrued liabilities 31.6 31.3 Current maturities of long-term debt 0.1 0.1 T
Slide 25: Condensed Income Statement – Q3
Condensed Income Statement – Q3 Three Months Ended Three Months Ended Delta September 30, 2022 September 30, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 130.0 $ 130.1 $ (0.0) (0.0%) Gross profit 23.1 17.8% 22.3 17.1% 0.8 3.7% SG&A 22.6 17.4% 20.1 15.4% 2.6 12.8%
Slide 26: Condensed Income Statement – YTD
Condensed Income Statement – YTD Nine Months Ended Nine Months Ended Delta September 30, 2022 September 30, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 360.3 $ 400.7 $ (40.3) (10.1%) Gross profit 62.8 17.4% 67.3 16.8% (4.4) (6.6%) SG&A 59.3 16.5% 57.8 14.4% 1.5 2
Slide 27: Condensed Cash Flows
Condensed Cash Flows Nine Months Ended Nine Months Ended ($ in millions) September 30, 2022 September 30, 2021 Net (loss) income and other non-cash items from continuing operations $ 9.1 $ 13.9 Receivables (23.8) (6.4) Contract assets (1.0) (3.3) Inventory (21.6) (9.3) Payables and deferred revenue
Slide 28: Orders and Backlog
Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) September 30, 2022 September 30, 2021 Delta Rail, Technologies, and Services $ 56.5 $ 84.0 $ (27.4) (32.7%) Precast Concrete Products 30.7 23.4 7.3 31.3% Steel Products and Measurement 50.1 31.5 18.5 58.8% Total $ 137.3 $ 138
Slide 29: Segment Results – Q3
Segment Results – Q3 Three Months Ended Three Months Ended Delta Segment Sales September 30, 2022 September 30, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 77.4 $ 73.9 $ 3.4 4.6% Precast Concrete Products 28.9 18.0 10.9 60.6% Steel Products and Measurement 23.8 38.1 (14.3) (37.6%
Slide 30: Segment Results – YTD
Segment Results – YTD Nine Months Ended Nine Months Ended Delta Segment Sales September 30, 2022 September 30, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 222.9 $ 229.0 (6.1) (2.7%) Precast Concrete Products 67.5 50.7 16.8 33.0% Steel Products and Measurement 70.0 121.0 (51.0) (4
Slide 31: Non-GAAP Measure: Funding Capacity
Non-GAAP Measure: Funding Capacity ( $ in millions, unless other w ise noted) September 30, 2022 Cash & Cash Equivalents $ 4.9 Total Availability Under the Credit Facility 130.0 Outstanding Borrowings on Revolving Credit Facility (98.8) Letters of Credit Outstanding (0.6) Net Availability Under the
Slide 32: Non-GAAP Measure: Net Debt and Adj. Leverage Ratio
Non-GAAP Measure: Net Debt and Adj. Leverage Ratio September 30, December 31, September 30, December 31, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 2017 ($ in millions) Outstanding Borrowings on Revolving Credit Facility $ 98.8 $ 31.1 $ 32.3 $ 44.8 $ 33.9 $ 74.0 $ 128.5 Ter
Slide 33: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Twelve Months Ended ($ in millions) September 30, December 31, September 30, December 31, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 2017* Net (loss) income from continuing operations, as reported $ (2.1) $ 3.5 $ 6.2 $ 25.8 $ 48.0 $ (30.6)
Slide 34: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA Three Months Ended ($ in millions) September 30, September 30, 2022 2021 Net (loss) income as reported $ (2.1) $ 2.2 Interest expense, net 1.0 0.7 Income tax (benefit) expense (0.2) 0.7 Depreciation expense 2.3 2.0 Amortization expense 1.6 1.5 Total EBITDA $ 2.6 $ 7.1 Acquis
Slide 35: Non-GAAP Measure: Crossrail Adjustment
Non-GAAP Measure: Crossrail Adjustment Three Months Ended Nine Months Ended ($ in millions) September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Rail, Technologies, and Services net sales, as reported $ 77.4 $ 73.9 $ 222.9 $ 229.0 Crossrail settlement adjustment 4.0 - 4.0 - Ra
Slide 36: Non-GAAP Measure: Nonroutine Item Adjustments
Non-GAAP Measure: Nonroutine Item Adjustments Three Months Ended Nine Months Ended ($ in millions) September 30, September 30, September 30, September 30, 2022 2021 2022 2021 Net sales, as reported $ 130.0 $ 130.1 $ 360.3 $ 400.7 Crossrail settlement adjustment 4.0 - 4.0 - Net sales, as adjusted 134
Slide 37: Non-GAAP Measure: Adj. EBITDA Margin, Adj. Sales
Non-GAAP Measure: Adj. EBITDA Margin, Adj. Sales Three Months Ended ($ in millions) September 30, September 30, 2022 2021 Net sales, as reported $ 130.0 $ 130.1 Crossrail settlement adjustment 4.0 - Net sales, as adjusted 134.0 130.1 Adjusted EBITDA1 $ 9.3 $ 4.4 Adjusted EBITDA margin as a % of adju
Slide 38: Non-GAAP Measure: Adjusted Legacy Sales
Non-GAAP Measure: Adjusted Legacy Sales Three Months Ended ($ in millions) September 30, September 30, 2022 2021 Net sales, as reported $ 130.0 $ 130.1 VanHooseCo sales 6.4 - Track components sales 0.7 2.9 Skratch sales 0.9 - Piling products sales - 16.3 Legacy business sales 122.1 110.8 Crossrail s