L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q2 2020 Earnings Presentation
26 slides from L.b. Foster's earnings presentation, Aug 4, 2020
Slide 1: Q2 2020 Earnings Presentation
Q2 2020 Earnings Presentation August 4, 2020 Bob Bauer – President and CEO Jim Kempton – Controller and Principal Accounting Officer
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 Section 21E of the This investor presentation discloses the following non-GAAP measures: Securities Exchange Act of 1934
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 1902 54 1,330 $1.62* $41.9 • Headquartered in Pittsburgh, Pennsylvania FOUNDED PLANTS PROFESSIONALS 20
Slide 4: Solid 2nd Quarter performance despite COVID-19 impact
• Solid 2nd Quarter performance despite the impact of the COVID-19 Pandemic. • Reported Net Income of $0.5 million, resulting in Diluted EPS of $0.05 per share, and Adjusted EBITDA (1) of $11.8 million for 2nd Quarter 2020. • 2nd Quarter 2020 Adjusted Net Income (1) of $4.4 million, or $0.41 per Adj
Slide 5: Cautiously Optimistic Outlook in Rail and Construction Segments
• Cautiously Optimistic Outlook in Rail Products and Services & Construction Products Segments. • The Rail Segment outlook continues to be positive, particularly within transit products, coupled with the expectation that the London Crossrail services will resume in the second half of the year; the C
Slide 6: Metrics Q2 2020 vs Q2 2019
Metrics ($ in millions, unless otherwise noted; Q2 2020 Q2 2019 Delta • Second quarter 2020 results are inclusive of a $7.0 million except per share data) restructuring charge related to the closure of three facilities within the Test, Inspection, and Threading Services business Sales $145.8 $200.9
Slide 7: New Orders Entered
New Orders Entered – Three Months Ended ($ in millions) June 30, 2020 June 30, 2019 Delta • New order volume increased as Q2 Rail Products and Services $73.8 $78.2 $(4.4) (5.6)% 2020 progressed and certain pandemic-related restriction orders Construction Products $49.3 $44.3 $5.0 11.2% were lifted.
Slide 8: Backlog vs. Prior Year Quarter
Backlog vs. Prior Year Quarter ($ in millions) June 30, 2020 June 30, 2019 Delta • The aggregate $29.7 million quarter- Rail Products and Services $106.2 $94.0 $12.2 12.9% over-quarter increase in backlog Construction Products $106.8 $89.2 $17.5 19.7% experienced in the Rail Products and Services an
Slide 9: Free Cash Flow Yield
• Robust cash flows from operating activities drives double-digit free Free Cash Flow Yield cash flow yields on a historic basis. ($ in millions, unless otherwise noted; except LTM Q2 2020 2019 2018 per share data) • Management’s focus on working capital management is a Cash provided by operating si
Slide 10: Liquidity
($ in millions, unless otherwise noted) • Through strategic review of June 30, 2020 December 31, 2019 the Company’s liquidity Cash & Cash Equivalents $7.4 $14.2 needs during Q2 2020, the Company entered into an amendment of its credit Total Availability Under the Credit Facility $120.0 $140.0 agreem
Slide 11: Net Debt
CHANGE IN NET DEBT TO ADJUSTED EBITDA 1 4.5x • Strategic focus on deleveraging through 4.0x $92.3 $100.0 optimizing operating cash flows. 3.5x $80.0 • Net debt levels continue 3.0x Net Debt (in millions) $64.7 to decline in comparison to past years, aligning 2.5x 2.4x $60.0 with the Company’s debt $
Slide 12: Business Review
LBFoster. BUSINESS REVIEW
Slide 13: Rail Products and Services: Q2 2020 Net Sales by Segment
Revenue Q2 2020 Net Sales by • The Rail Products and Rail Technologies businesses experienced a 23.2% and ($ in millions) Segment ($ in millions) 32.0% decrease in revenue from the prior year quarter, which also negatively impacted gross profit. $100 • The COVID-19 pandemic impact on rail $101 $75 $
Slide 14: Construction Products: Q2 2020 Net Sales by Segment
Revenue Q2 2020 Net Sales by • The new Precast Concrete Products Boise, ID facility continued to have lower revenue ($ in millions) Segment ($ in millions) volumes when compared to the Spokane, WA facility, which resulted in a decline in $100 gross profit. $42 $50 • Gross profit contribution increas
Slide 15: Tubular and Energy Services: Q2 2020 Net Sales by Segment
• The worldwide COVID-19 pandemic and Revenue Q2 2020 Net Sales by associated reduction in demand for oil and ($ in millions) Segment natural gas due to reduced travel and ($ in millions) movement of goods throughout the world has caused U.S. exploration and production $50 companies to reduce operat
Slide 16: Appendix
r APPENDIX LBFoste
Slide 17: Three Months Ended June 30, 2020 Results
Three Months Ended Three Months Ended Delta June 30, 2020 June 30, 2019 ($ in millions, except per share) $ % of Sales $ % of Sales $ % Sales $ 145.8 — $ 200.9 — $ (55.2) (27.5)% Gross profit 27.1 18.6 % 37.1 18.5% (10.1) (27.1)% SG&A 19.6 13.4 % 22.9 11.4 % (3.3) (14.4)% Amortization expense 1.4 1.
Slide 18: Six Months Ended June 30, 2020 Results
Six Months Ended Six Months Ended Delta June 30, 2020 June 30, 2019 ($ in millions, except per share) $ % of Sales $ % of Sales $ % Sales $ 274.5 — $ 351.4 — $ (76.9) (21.9)% Gross profit 48.7 17.7 % 66.3 18.9 % (17.6) (26.5)% SG&A 40.9 14.9 % 44.8 12.7 % (3.9) (8.7)% Amortization expense 2.9 1.1 %
Slide 19: Sales and Segment Profit - Three Months
Three Months Ended Three Months Ended Delta Sales June 30, 2020 June 30, 2019 ($ in millions) $ % of Sales $ % of Sales $ % Rail Products and Services $ 74.9 51.4% $ 101.4 50.5% $ (26.5) (26.1)% Construction Products 42.0 28.8% 55.4 27.6% (13.4) (24.2)% Tubular and Energy Services 28.8 19.8% 44.1 21
Slide 20: Sales and Segment Profit - Six Months
Six Months Ended Six Months Ended Delta Sales June 30, 2020 June 30, 2019 ($ in millions) $ % of Sales $ % of Sales $ % Rail Products and Services $ 145.1 52.9% $ 177.1 50.4% $ (32.0) (18.0)% Construction Products 71.0 25.9% 92.8 26.4% (21.7) (23.4)% Tubular and Energy Services 58.4 21.2% 81.6 23.2%
Slide 21: Assets
Assets June 30, 2020 December 31, 2019 ($ in millions) (audited) Current assets: Cash and cash equivalents $ 7.4 $ 14.2 Accounts receivable - net 82.5 78.6 Inventories - net 113.7 119.3 Other current assets 7.2 4.6 Total current assets 210.8 216.7 Property, plant, and equipment - net 79.7 82.3 Opera
Slide 22: Liabilities and Stockholders' Equity
Liabilities and Stockholders’ Equity June 30, 2020 December 31, 2019 ($ in millions) (audited) Current Liabilities: Accounts payable and accrued liabilities $ 113.0 $ 113.8 Current maturities of long-term debt 0.1 2.9 Total current liabilities 113.1 116.7 Long-term debt 55.4 55.3 Other long-term lia
Slide 23: Cash Flow Summary
Six Months Ended Six Months Ended ($ in millions) June 30, 2020 June 30, 2019 Net (loss) income and non-cash items $ 12.2 $ 23.8 Receivables (4.5) (12.4) Inventory 3.4 (9.8) Payables and deferred revenue 8.2 2.8 Working capital subtotal 7.1 (19.4) All other (13.1) (13.8) Operating cash flow 6.1 (9.4
Slide 24: EBITDA and Adjusted EBITDA Reconciliation
Three Months Ended Six Months Ended Twelve Months Ended ($ in millions) June 30, June 30, June 30, June 30, June 30, December 31, 2020 2019 2020 2019 2020 2019 Net income (loss), as reported $ 0.5 $ 9.6 $ (1.3) $ 13.3 $ 28.0 $ 42.6 Interest expense - net 1.1 1.6 1.9 3.0 3.9 4.9 Income tax expense (b
Slide 25: Adjusted Net Income Reconciliation
Three Months Ended Six Months Ended Year Ended ($ in millions, unless otherwise noted except per share data) June 30, 2020 June 30, 2020 December 31, 2019 Net income (loss), as reported $ 0.5 $ (1.3) $ 42.6 Restructuring, relocation and closure costs, net of tax benefit of $1.7, $1.9, and $0.8, resp
Slide 26: Net Debt Reconciliation
June 30, 2020 December 31, 2019 December 31, 2018 December 31, 2017 ($ in millions) Total debt $ 55.6 $ 58.2 $ 75.0 $ 130.0 Less cash and cash equivalents (7.4) (14.2) (10.3) (37.7) Total net debt $ 48.2 $ 44.0 $ 64.7 $ 92.3 L.B. Foster Company (FSTR) Q2 2020 Earnings Presentation Note figures may n