L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q4 2022 Earnings Presentation
33 slides from L.b. Foster's earnings presentation, Mar 6, 2023
Slide 1: L.B. Foster Company Q4 2022 Earnings Presentation
L.B. Foster Company Q4 2022 Earnings Presentation Nasdaq - FSTR March 6, 2023
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 and Exchange Act of 1934, as amended, and Sectio
Slide 3: Company Overview
Company Overview A global solutions provider of engineered and manufactured products and services to build and support infrastructure 2022 Net Sales by Region Who we are NASDAQ: FSTR ($ in millions) • Headquartered in Pittsburgh, Pennsylvania • Locations throughout North America, South 36 ~1,100 $47
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q4 2022 Earnings Presentation 4 March 6, 2023
Slide 5: Executive Summary – Quarter Highlights
Executive Summary – Quarter Highlights What we’ve accomplished… Where we’re going… Net sales of $137.2M up 21.4% yoy New orders1 increased driving 260 bps gross 44.8% yoy in Q4 Board of Directors Initiating 2023 financial margin expansion authorized $15M stock guidance with net sales Full year Book
Slide 6: Financial Review
Financial Review Bill Thalman Senior Vice President and CFO L.B. Foster Q4 2022 Earnings Presentation 6 March 6, 2023
Slide 7: Fourth Quarter Results
Fourth Quarter Results As of and for the quarter ended December 31, 2022: YoY Δ • Net sales increased 13.0% organically and 12.0% $ in millions, unless otherwise noted from acquisitions, less 3.6% from divestitures SALES 137.2 24.2 • Gross profit margins up 260 bps due primarily to GROSS PROFIT 26.8
Slide 8: 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 $9 $13.6 $4.0 $137.2 $8 $125 $14.6 $7 $3.2, $7.5 $113.0 32.9% leverage 5.5% of sales $100 $6 $5 $75 $4 $1.1, 7.5% leverage $50 $3 $3.2 $2 2.8% of sales $25 $1 $0 $
Slide 9: Six Month Adjusted EBITDA Margin Expansion
Six Month Adjusted EBITDA Margin Expansion Adjusted EBITDA as a Percent of Adjusted Sales1 ($ in millions) 7% 6% 6.2% 5% 4% 4.1% 3% 3.1% 3.2% 2% 1% 0% Six Months Ended June 30, 2021 Six Months Ended December 31, 2021 Six Months Ended June 30, 2022 Six Months Ended December 31, 2022 Step-change impro
Slide 10: Rail, Technologies, and Services – Q4 Results
Rail, Technologies, and Services – Q4 Results Strong organic demand coupled with portfolio reshaping improved segment margin profile Rail, Technologies Technologies, Sales GP Margin and and Services Services +9.8% +350 bps $100 25% $75 20% 15% $50 23.1% $71 $78 10% 19.6% $25 5% $0 0% Q4 2021 Q4 2022
Slide 11: Precast Concrete Products – Q4 Results
Precast Concrete Products – Q4 Results VanHooseCo contributing favorable impact on results; demand environment remains strong Precast Concrete Sales GP Margin Products +81.3% +220 bps $40 25% $30 20% 15% $20 $37 10% 18.8% 16.6% $10 $20 5% $0 0% Q4 2021 Q4 2022 Q4 2021 Q4 2022 • Net sales increased 2
Slide 12: Steel Products and Measurement – Q4 Results
Steel Products and Measurement – Q4 Results Improved results and outlook for Coatings business largely offset by weaker Fabricated Bridge performance Steel Products and Sales GP Margin Measurement +3.6% +30 bps $25 10% $20 8% $15 6% $10 $22 $23 4% 8.3% 8.6% $5 2% $0 0% Q4 2021 Q4 2022 Q4 2021 Q4 202
Slide 13: Full Year Results
Full Year Results As of and for the twelve months ended December 31, 2022: YoY Δ $ in millions, unless otherwise noted • Sales increased 5.7% organically and 4.0% from acquisitions, but was more than offset by a SALES 497.5 (16.1) 12.8% reduction due to divestitures GROSS PROFIT 89.6 3.3 • Portfolio
Slide 14: Focus on Liquidity and Priority Uses of Cash
Focus on Liquidity and Priority Uses of Cash P Focus on cash generation translated to 2.8x gross leverage ratio1 as of 12/31/2022…a 0.5x reduction during the quarter December 31, 2022 Investing Key Metrics • Gross leverage ratio per the Company’s credit agreement1 declined Cash Flow during the quart
Slide 15: New Orders, Revenue and TTM Book-to-Bill Ratios
New Orders1, Revenue and TTM Book-to-Bill Ratios Consolidated New Orders1 and Revenue Rail, Technologies, and Services $175 ($ in millions) ($ in millions) $100 $150 $91 $93 $125 $141 $137 $138 $137 $75 $135 $132 $130 $82 $78 $77 $74 $100 $99 $50 $64 $75 $57 $50 $25 $25 $0 $0 Q1 2022 Q2 2022 Q3 2022
Slide 16: Backlog Trends
Backlog1 Trends Consolidated Backlog1 Rail, Technologies, and Services Backlog1 ($ in millions) ($ in millions) $300 $150 $250 $125 $200 $100 $150 $75 $251 $273 $272 $123 $132 $245 $109 $100 $210 $50 $97 $105 $50 $25 $0 $0 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 20
Slide 17: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q4 2022 Earnings Presentation 17 March 6, 2023
Slide 18: Market and Business Outlook
Market and Business Outlook We remain optimistic in the near and longer-term prospects for our core end markets • Maintaining optimistic outlook regarding near and longer-term trends in core end markets of freight and transit rail and general infrastructure • Integration of recent acquisitions facil
Slide 19: 2023 Financial Guidance / Stock Buyback Program
2023 Financial Guidance / Stock Buyback Program 2023 Financial Guidance Stock Buyback Program • Net sales expected between $540M and $570M • $15M stock buyback program authorized • Range represents growth outlook of 8.5% to 14.6% • 3-year duration through February 2026 • Growth outlook does not assu
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. EBITDA1 ~$50M Adj. EBITDA Margin ~8.0% L.B. Foste
Slide 21: Thank you!
Thank you! L.B. Foster Q4 2022 Earnings Presentation L.B. Foster Q4 2022 Earnings Presentation 21 March 6, 2023
Slide 22: Appendix
Appendix L.B. Foster Q4 2022 Earnings Presentation 22 March 6, 2023
Slide 23: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets December 31, 2022 December 31, 2021 Assets ($ in millions) Current assets: Cash and cash equivelants $ 2.9 $ 10.4 Accounts receivable - net 82.5 55.9 Contract assets 33.6 36.2 Inventories - net 75.7 62.9 Other current assets 11.1 14.1 Total current assets $ 205.7 $ 1
Slide 24: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity December 31, 2022 December 31, 2021 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 48.8 $ 41.4 Deferred revenue 19.5 13.4 Other accrued liabilities 34.8 31.3 Current maturities of long-term debt 0.1 0.1 To
Slide 25: Condensed Income Statement – Q4
Condensed Income Statement – Q4 Three Months Ended Three Months Ended Delta December 31, 2022 December 31, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 137.2 $ 113.0 $ 24.2 21.4% Gross profit 26.8 19.5% 19.0 16.9% 7.7 40.7% SG&A 23.3 17.0% 18.1 16.1% 5.2 28.7% Amo
Slide 26: Condensed Income Statement – YTD
Condensed Income Statement – YTD Twelve Months Ended Twelve Months Ended Delta December 31, 2022 December 31, 2021 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 497.5 $ 513.6 $ (16.1) (3.1%) Gross profit 89.6 18.0% 86.3 16.8% 3.3 3.8% SG&A 82.7 16.6% 76.0 14.8% 6.7 8.8%
Slide 27: Condensed Cash Flows
Condensed Cash Flows Twelve Months Ended Twelve Months Ended ($ in millions) December 31, 2022 December 31, 2021 Net (loss) income and other non-cash items from continuing operations $ 15.2 $ 16.7 Receivables (25.1) 2.3 Contract assets (0.5) 1.3 Inventory (11.8) (4.0) Payables and deferred revenue 1
Slide 28: Orders and Backlog
Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) December 31, 2022 December 31, 2021 Delta Rail, Technologies, and Services $ 73.5 $ 58.4 $ 15.1 25.9% Precast Concrete Products 35.6 22.1 13.5 61.2% Steel Products and Measurement 28.7 14.7 14.0 95.2% Total $ 137.8 $ 95.2 $ 4
Slide 29: Segment Results – Q4
Segment Results – Q4 Three Months Ended Three Months Ended Delta Segment Sales December 31, 2022 December 31, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 77.7 $ 70.8 $ 6.9 9.8% Precast Concrete Products 36.7 20.3 16.5 81.3% Steel Products and Measurement 22.7 21.9 0.8 3.6% Total
Slide 30: Segment Results – YTD
Segment Results – YTD Twelve Months Ended Twelve Months Ended Delta Segment Sales December 31, 2022 December 31, 2021 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 300.6 $ 299.8 $ 0.8 0.3% Precast Concrete Products 104.2 71.0 33.2 46.8% Steel Products and Measurement 92.7 142.9 (50.2) (
Slide 31: Non-GAAP Measure: Funding Capacity and Net Debt
Non-GAAP Measure: Funding Capacity and Net Debt ( $ in millions, unless other w ise noted) December 31, 2022 Cash and cash equivalents $ 2.9 Total availability under the credit facility 130.0 Outstanding borrowings on revolving credit facility (91.6) Letters of credit outstanding (0.6) Net availabil
Slide 32: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Three Months Ended Twelve Months Ended ($ in millions) December 31, December 31, December 31, December 31, 2022 2021 2022 2021 Net (loss) income as reported $ (43.9) $ (0.4) $ (45.7) $ 3.5 Interest expense, net 1.6 0.5 3.3 3.0 Income tax (benefit) expense 36.5 (0.4)
Slide 33: Non-GAAP Measure: Adjusted EBITDA Margin
Non-GAAP Measure: Adjusted EBITDA Margin Six Months Ended ($ in millions) December 31, June 30, December 31, June 30, 2022 2022 2021 2021 Net (loss) income from continuing operations, as reported $ (46.1) $ 0.4 $ 1.9 $ 1.6 Interest expense, net 2.6 0.8 1.2 1.7 Income tax expense 36.4 0.3 0.3 0.8 Dep