L.B. Foster Company · NASDAQ:FSTR
L.B. Foster — Q1 2017 Earnings Presentation
18 slides from L.B. Foster's earnings presentation, May 2, 2017
Slide 1: Q1 2017 Earnings Presentation
TUBULAR & ENERGY SERVICES PRODUCTS & www.lbfoster.com SERVICES RAIL Q1 2017 Earnings Presentation PRODUCTS CONSTRUCTION May 2, 2017
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation and oral statements regarding the subject matter may contain “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. We caution you that such statements involve risks, uncertainties and assumptions
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This earnings presentation discloses the following non-GAAP measure: • Earnings before interest, taxes, depreciation, and amortization (“EBITDA”) Management believes that this non-GAAP financial measure is useful to investors in the assessment of our operations as well as
Slide 4: Financial Overview
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Slide 5: Financial Highlights
Financial Highlights Metrics Q1 2017 Q1 2016 Variance Sales $118.7 million $126.3 million $(7.6) million, (6.0)% Gross Profit Margin 17.9% 19.0% (110) Bps Net Loss per Diluted Share $(0.23) $(0.28) $0.05 EBITDA 1 $5.1 million $4.0 million $1.1 million, 28.9% Operating Cash Flow $10.7 million $(5.1)
Slide 6: Consolidated Income Statement - QTD
Consolidated Income Statement - QTD Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Delta ($ in millions, except per share) $ % $ % $ % Sales $118.7 - $126.3 - $(7.6) (6.0)% Gross Profit 21.3 17.9% 24.0 19.0% (2.7) (11.3)% SG&A 19.2 16.2% 22.8 18.1% (3.6) (15.7)% Amortization Exp
Slide 7: Segment Results
Segment Results Three Months Ended Three Months Ended March 31, 2017 March 31, 2016 Delta Sales $ % of Total $ % of Total $ % ($ in millions) Rail Products and Services $56.5 47.6% $64.3 50.9% $(7.8) (12.2)% Construction Products 37.3 31.4% 31.9 25.2% 5.4 17.1% Tubular and Energy Services 24.9 21.0%
Slide 8: Balance Sheet
Balance Sheet ($ in millions) March 31, 2017 December 31, 2016 ASSETS (audited) Current assets: Cash and cash equivalents $33.8 $30.4 Accounts receivable – net 76.7 66.6 Inventories – net 82.6 83.2 Other current assets 18.1 19.4 Total current assets 211.1 199.6 Property, plant and equipment – net 10
Slide 9: Cash Flows
Cash Flows Three Months Ended Three Months Ended ($ in millions) March 31, 2017 March 31, 2016 Net loss and non-cash items $3.0 $4.0 Receivables (9.9) 4.3 Inventory 0.9 4.1 Payables and deferred revenue 17.7 (7.8) Working capital subtotal 8.8 0.6 All other (1.0) (9.8) Operating cash flow 10.7 (5.1)
Slide 10: New Order Summary
New Order Summary New Orders Entered Delta Three Months Ended Three Months Ended ($ in millions) $ % March 31, 2017 March 31, 2016 Rail Products and Services $87.1 $54.5 $32.6 59.7% Construction Products 44.4 39.6 4.8 12.1% Tubular and Energy Services 31.2 23.8 7.4 31.1% Total $162.7 $117.9 $44.8 38
Slide 11: Backlog Summary
Backlog Summary ($ in millions) Backlog March 31, 2017 Dec. 31, 2016 March 31, 2016 Rail Products and Services $91.7 $62.7 $74.9 Construction Products 79.1 72.0 57.0 Tubular and Energy Services 24.5 12.8 22.1 Total $195.3 $147.5 $154.0 Note: Figures may not foot due to rounding. 11
Slide 12: Business Review
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Slide 13: Rail Products and Services
Rail Products and Services Q1 2017 Results Sales Segment Profit ($ in millions) ($ in millions) $(9.1) $1.9 $(0.6) $64.3 $56.5 $1.5 $0.7 Q1 2016 US Track European All Other Q1 2017 Q1 2016 Q1 2017 Comp. Rail Commentary Market Outlook • Sales decreased by 12.2% with declines across all domestic track
Slide 14: Construction Products
Construction Products Q1 2017 Results Sales Segment Profit ($ in millions) ($ in millions) $3.0 $(0.7) $3.2 $37.3 $31.9 $1.2 $0.4 Q1 2016 Piling Bridge Concrete Q1 2017 Q1 2016 Q1 2017 Commentary Market Outlook Q1 2017 Trends / Outlook: • Sales increase due to improved demand for certain Piling prod
Slide 15: Tubular and Energy Services
Tubular and Energy Services Q1 2017 Results Sales Segment Profit/(Loss) ($ in millions) ($ in millions) $(6.2) $(0.5) $2.9 $(1.9) $30.1 $(1.9) $24.9 Q1 2016 Precision Test & Other Q1 2017 Measurement Inspection Q1 2016 Q1 2017 Commentary Market Outlook • Sales decreased by 17.4% with declines in all
Slide 16: Key Takeaways
Key Takeaways • Bookings in Q1 2017 reflect strengthening of our markets and the ability to gain share in certain niches • Combined, the distribution businesses contributed to lower gross profit • North American freight rail orders improved late in Q1 and are expected to remain steady into Q3 2017 •
Slide 17: Appendix: Non-GAAP Reconciliations
TUBULAR & ENERGY SERVICES PRODUCTS & www.lbfoster.com SERVICES RAIL Appendix PRODUCTS CONSTRUCTION Non-GAAP Reconciliations
Slide 18: Non-GAAP Financial Measures: EBITDA
Non-GAAP Financial Measures: EBITDA Three Months Ended ($ in millions) March 31, 2017 March 31, 2016 Net loss as reported $(2.4) $(2.8) Interest expense, net 2.1 1.1 Income tax expense (benefit) 0.4 (1.3) Depreciation 3.3 3.7 Amortization 1.8 3.3 EBITDA $5.1 $4.0 Note: Figures may not foot due to ro