L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q2 2022 Earnings Presentation
33 slides from L.b. Foster's earnings presentation, Aug 9, 2022
Slide 1: L.B. Foster Company Q2 2022 Earnings Presentation
L.B. Foster Company Q2 2022 Earnings Presentation Nasdaq - FSTR August 9, 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 $37 • Locations throughout North America, South 1902 39 ~
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q2 2022 Earnings Presentation 4 August 9, 2022
Slide 5: Executive Summary
Executive Summary Completed two U.K. acquisitions that reflect investment in $251M in Q2 results reflect Building momentum Rail Technologies backlog1 represents a progress on revenue by executing our growth platform 5-year high and profitability, with strategic playbook strong sequential and activel
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
Business Transformation Update L.B. Foster continues to execute its portfolio transformation in line with our strategic playbook Rail Technologies - Acquisitions Completed acquisition of U.K.-based Skratch Enterprises Ltd. on Both acquired businesses support the Company’s June 21, 2022 Technology Se
Slide 8: Financial Review
Financial Review Bill Thalman Senior Vice President and CFO L.B. Foster Q2 2022 Earnings Presentation 8 August 9, 2022
Slide 9: Second Quarter Results
Second Quarter Results As of and for the quarter ended June 30, 2022: YoY Δ $ in millions, unless otherwise stated • Adjusting for Piling, sales down $0.9M YoY2 SALES 131.5 (23.0) • The 80 bps improvement in gross profit was GROSS PROFIT 23.3 (2.9) driven by the Piling divestiture GROSS PROFIT MARGI
Slide 10: Rail, Technologies, and Services – Q2 Results
Rail, Technologies, and Services – Q2 Results Q2 sales below last year on order timing…improved margins with robust order intake and backlog Rail, Technologies Technologies, Sales GP Margin and and Services Services (7.9%) +30 bps $100 25% $75 20% 15% $50 $89 $82 10% 18.8% 19.1% $25 5% $0 0% Q2 2021
Slide 11: Precast Concrete Products – Q2 Results
Precast Concrete Products – Q2 Results Demand environment remains strong while cost inflation and building sales mix adversely impacted margins Precast Concrete Sales GP Margin Products +17.7% (530) bps $30 25% 20% $20 15% $24 10% 19.5% $10 $20 14.2% 5% $0 0% Q2 2021 Q2 2022 Q2 2021 Q2 2022 • Sales
Slide 12: Steel Products and Measurement – Q2 Results
Steel Products and Measurement – Q2 Results 1 Improving revenues and margins reflect modest recovery from depressed levels Steel Products and Sales GP Margin Measurement +10.7% +140 bps $30 20% 15% $20 10% $24 $26 15.0% 16.4% $10 5% $0 0% Q2 2021 Q2 2022 Q2 2021 Q2 2022 • Revenue recovery in Protect
Slide 13: Year to Date Results
Year to Date Results As of and for the six months ended June 30, 2022: YoY Δ $ in millions, unless otherwise stated SALES 230.3 (40.3) • Adjusting for Piling, sales up $2.6M, or 1.1%, YoY2 GROSS PROFIT 39.7 (5.3) • Reported gross profit margin increase due to Piling divestiture; adjusted for Piling,
Slide 14: Focus on Liquidity
Focus on Liquidity P June 30, 2022 Net leverage metrics reflect working capital and acquisition funding to support growth Net Debt1 and Adj. Net Leverage Ratio1 Key Metrics • Net debt1 totaled $42.4M, up $9.3M YoY, due to ($ in millions) working capital and acquisition funding $70 3.0x 2.8x • Net de
Slide 15: 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 $89 $91 $93 $125 $139 $139 $141 $75 $84 $130 $135 $132 $82 $71 $74 $71 $100 $113 $99 $50 $64 $95 $58 $75 $50 $25 $25 $0 $0 Q2 2021 Q3 2
Slide 16: Backlog Trends
Backlog Trends Consolidated Backlog1 Rail, Technologies, and Services Backlog ($ in millions) ($ in millions) $150 $250 $125 $200 $100 $150 $251 $75 $230 $245 $132 $100 $220 $210 $123 $50 $103 $110 $97 $50 $25 $0 $0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Prec
Slide 17: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q2 2022 Earnings Presentation 17 August 9, 2022
Slide 18: Market and Business Outlook
Market and Business Outlook Improving quotation activity from Infrastructure Investment and Jobs Act • Strong backlog and order rates ahead of expected benefits from recent government programs • Overall quotation levels and demand continues to be robust across most of the business • Maintaining opti
Slide 19: Building Momentum – Long-Term Vision (2025)
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 ~$50M Adj. EBITDA Margin ~8.0% L.B. Foster
Slide 20: Thank you!
Thank you! L.B. Foster Q2 2022 Earnings Presentation August 9, 2022 L.B. Foster Q2 2022 Earnings Presentation 20 August 9, 2022
Slide 21: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets June 30, 2022 December 31, 2021 Assets ($ in millions) Current assets: Cash and cash equivelants $ 7.7 $ 10.4 Accounts receivable - net 72.3 55.9 Contract assets 31.0 36.2 Inventories - net 73.4 62.9 Other current assets 18.6 14.1 Total current assets $ 202.9 $ 179.5
Slide 22: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity June 30, 2022 December 31, 2021 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 49.9 $ 41.4 Deferred revenue 19.1 13.4 Other accrued liabilities 27.5 31.3 Current maturities of long-term debt 0.1 0.1 Total
Slide 23: Condensed Income Statement – Q2
Condensed Income Statement – Q2 Three Months Ended Three Months Ended Delta June 30, 2022 June 30, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 131.5 $ 154.5 $ (23.0) (14.9%) Gross profit 23.3 17.7% 26.2 16.9% (2.9) (11.0%) SG&A 19.4 14.7% 19.8 12.8% (0.4) (1.9%)
Slide 24: Condensed Income Statement – YTD
Condensed Income Statement – YTD Six Months Ended Six Months Ended Delta June 30, 2022 June 30, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 230.3 $ 270.6 $ (40.3) (14.9%) Gross profit 39.7 17.3% 45.0 16.6% (5.3) (11.7%) SG&A 36.7 15.9% 37.8 14.0% (1.1) (2.9%) Amo
Slide 25: Condensed Cash Flows
Condensed Cash Flows Six Months Ended Six Months Ended ($ in millions) June 30, 2022 June 30, 2021 Net income and other non-cash items from continuing operations $ 7.3 $ 9.7 Receivables (17.3) (19.9) Contract assets 2.2 (2.7) Inventory (10.7) 5.5 Payables and deferred revenue 14.6 21.0 Trade Working
Slide 26: Orders and Backlog
Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) June 30, 2022 June 30, 2021 Delta Rail, Technologies, and Services $ 92.9 $ 70.9 $ 22.1 31.1% Precast Concrete Products 22.9 16.4 6.5 39.4% Steel Products and Measurement 25.6 51.3 (25.7) (50.1%) Total $ 141.4 $ 138.6 $ 2.9 2
Slide 27: Orders and Backlog - Continued
Orders and Backlog - Continued New Orders Entered – Six Months Ended ($ in millions) June 30, 2022 June 30, 2021 Delta Rail, Technologies, and Services $ 184.3 $ 139.5 $ 44.8 32.1% Precast Concrete Products 42.1 47.2 (5.2) (10.9%) Steel Products and Measurement 50.5 87.4 (36.9) (42.3%) Total $ 276.8
Slide 28: Segment Results – Q2
Segment Results – Q2 Three Months Ended Three Months Ended Delta Segment Sales June 30, 2022 June 30, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 81.8 $ 88.8 $ (7.0) (7.9%) Precast Concrete Products 23.6 20.1 3.5 17.6% Steel Products and Measurement 26.1 45.7 (19.6) (42.8%) Total
Slide 29: Segment Results – YTD
Segment Results – YTD Six Months Ended Six Months Ended Delta Segment Sales June 30, 2022 June 30, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 145.5 $ 155.0 (9.5) (6.1%) Precast Concrete Products 38.6 32.7 5.9 17.9% Steel Products and Measurement 46.2 82.8 (36.7) (44.3%) Total $
Slide 30: Non-GAAP Measure: Funding Capacity
Non-GAAP Measure: Funding Capacity ( $ in millions, unless other w ise noted) June 30, 2022 Cash & Cash Equivalents $ 6.9 Total Availability Under the Credit Facility 130.0 Outstanding Borrowings on Revolving Credit Facility (49.2) Letters of Credit Outstanding (0.7) 2 Net Availability Under the Rev
Slide 31: Non-GAAP Measure: Net Debt and Adj. Leverage Ratio
Non-GAAP Measure: Net Debt and Adj. Leverage Ratio June 30, December 31, June 30, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 ($ in millions) Outstanding Borrowings on Revolving Credit Facility $ 49.2 $ 31.1 $ 37.0 $ 44.8 $ 33.9 $ 74.0 Term Loan Outstanding - - - - 23.8 - Fi
Slide 32: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Twelve Months Ended ($ in millions) June 30, December 31, June 30, December 31, December 31, December 31, 2022 2021 2021 2020 2019 2018 Net income (loss) from continuing operations, as reported $ 2.3 $ 3.5 $ 20.4 $ 25.8 $ 48.0 $ (30.6) Interest expense, net 2.0 3.0
Slide 33: Non-GAAP Measure: EBITDA
Non-GAAP Measure: EBITDA Three Months Ended ($ in millions) June 30, June 30, 2022 2021 Net income as reported $ 2.0 $ 2.9 Interest expense, net 0.4 0.9 Income tax expense 0.8 1.1 Depreciation expense 1.9 2.0 Amortization expense 1.4 1.5 Total EBITDA $ 6.5 $ 8.3 Insurance proceeds (0.3) - Acquisitio