L.b. Foster Company · NASDAQ:FSTR
L.b. Foster — Q1 2023 Earnings Presentation
29 slides from L.b. Foster's earnings presentation, May 9, 2023
Slide 1: L.B. Foster Company Q1 2023 Earnings Presentation
L.B. Foster Company Q1 2023 Earnings Presentation Nasdaq - FSTR May 9, 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 Exchange Act of 1934, as amended, and Section
Slide 3: Company Overview
Company Overview A global technology solutions provider of engineered and manufactured products and services to build and support infrastructu re 2022 Net Sales by Region Who we are NASDAQ: FSTR ($ in millions) • Headquartered in Pittsburgh, Pennsylvania • Locations throughout North America, South 3
Slide 4: Opening Remarks
Opening Remarks John Kasel President and CEO L.B. Foster Q1 2023 Earnings Presentation 4 May 9, 2023
Slide 5: Executive Summary – Quarter Highlights
Executive Summary – Quarter Highlights What we’ve accomplished… Where we’re going… Strong commercial Reaffirming 2023 full Net sales up 16.9% yoy, Divested Chemtec for activity continues year financial guidance 11.5% organic growth $5.3M in proceeds New orders1 of Net sales Gross margin expanded $6.
Slide 6: Financial Review
Financial Review Bill Thalman Senior Vice President and CFO L.B. Foster Q1 2023 Earnings Presentation 6 May 9, 2023
Slide 7: First Quarter Results
First Quarter Results As of and for the quarter ended March 31, 2023: YoY Δ $ in millions, unless otherwise noted • Net sales increased 11.5% organically and 9.3% SALES 115.5 16.7 from acquisitions, less 3.9% from divestitures GROSS PROFIT 23.3 6.8 • Gross profit margin up 360 bps due to portfolio t
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) $5 $0.1, $150 0.9% leverage $4.5 $4 3.9% of sales $125 $9.1 $3.9 $11.4 $115.5 $100 $2.8, $3 $98.8 24.1% leverage $75 $2 $50 $1.7 1.7% of sales $1 $25 $0 $0 Q1 2022 Sales Le
Slide 9: Gross Profit Recovery
Gross Profit Recovery 22% $29 Q1 Gross Profit 2019 - 2023 $30 20% 20.2% $26 19.4% $23 18% Gross Profit ($ in millions) $22 Gross Profit Margin $22 16% 16.8% 16.6% 16.2% $18 14% $19 $16 $14 12% 10% $10 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Q1 2023 Structural improvement in gross margin contribution expecte
Slide 10: Rail, Technologies, and Services – Q1 Results
Rail, Technologies, and Services – Q1 Results Strong results in Global Friction Management partially offset by weakness in Technology Services and Solutions Rail, Technologies Technologies, Sales GP Margin and and Services Services +1.1% +250 bps $75 25% 20% $50 15% $64 $64 10% 19.7% 22.2% $25 5% $0
Slide 11: Precast Concrete Products – Q1 Results
Precast Concrete Products – Q1 Results Accretive VanHooseCo acquisition and improved pricing in legacy business drove increased revenue and margins Precast Concrete Sales GP Margin Products +61.8% +640 bps $30 25% 20% $20 15% $24 10% 22.7% $10 16.3% $15 5% $0 0% Q1 2022 Q1 2023 Q1 2022 Q1 2023 • Net
Slide 12: Steel Products and Measurement – Q1 Results
Steel Products and Measurement – Q1 Results Sale of Chemtec expected to favorably impact segment operating margins going forward Steel Products and Sales GP Margin Measurement +33.6% +570 bps $30 15% $20 10% $27 13.0% $10 $20 5% 7.3% $0 0% Q1 2022 Q1 2023 Q1 2022 Q1 2023 • Net sales increased due to
Slide 13: Focus on Liquidity and Priority Uses of Cash
Focus on Liquidity and Priority Uses of Cash P Strong cash generation during the quarter drove continued improvement in net debt and gross leverage metrics Change in Gross Leverage Ratio 1 Investing Capital allocation priorities remain unchanged Cash Flow • Execute de-levering initiatives where poss
Slide 14: New Orders, Revenue and Book-to-Bill Ratios
New Orders1, Revenue and Book-to-Bill Ratios1 Q1 Book-to-Bill Ratio: Rail, Technologies, and Services Q1 Book-to-Bill Ratio: Consolidated New Orders1 and Revenue 1.21 : 1 1.15 : 1 $175 ($ in millions) ($ in millions) $100 $150 $93 $125 $141 $137 $138 $137 $140 $75 $132 $130 $82 $78 $77 $74 $74 $100
Slide 15: Backlog Trends
Backlog1 Trends Consolidated Backlog1 Rail, Technologies, and Services Backlog1 ($ in millions) ($ in millions) $300 $150 $250 $125 $200 $100 $150 $75 $251 $273 $272 $260 $123 $132 $245 $109 $114 $100 $50 $105 $50 $25 $0 $0 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2
Slide 16: Closing Remarks
Closing Remarks John Kasel President and CEO L.B. Foster Q1 2023 Earnings Presentation 16 May 9, 2023
Slide 17: Market and Business Outlook
Market and Business Outlook Multi-year infrastructure investment expected to generate strong demand across the portfolio • Maintaining optimistic outlook regarding near and longer-term trends in core end markets of freight and transit rail and general infrastructure • Heightened focus on rail safety
Slide 18: Building Momentum
Building Momentum Long-Term Vision > A global technology solutions provider of (2025) engineered, manufactured products and services that builds and supports INFRASTRUCTURE REVENUE ~$600M GROSS PROFIT MARGIN ~21.0% ADJ. EBITDA1 ~$50M Adj. EBITDA1 Margin ~8.0% L.B. Foster Q1 2023 Earnings Presentatio
Slide 19: Thank you!
Thank you! L.B. Foster Q1 2023 Earnings Presentation L.B. Foster Q1 2023 Earnings Presentation 19 May 9, 2023
Slide 20: Appendix
Appendix L.B. Foster Q1 2023 Earnings Presentation 20 May 9, 2023
Slide 21: Condensed Balance Sheet - Assets
Condensed Balance Sheet - Assets March 31, 2023 December 31, 2022 Assets ($ in millions) Current assets: Cash and cash equivalents $ 2.6 $ 2.9 Accounts receivable - net 54.9 82.5 Contract assets 31.2 33.6 Inventories - net 84.6 75.7 Other current assets 11.9 11.1 Total current assets $ 185.2 $ 205.7
Slide 22: Condensed Balance Sheet – Liabilities and Equity
Condensed Balance Sheet – Liabilities and Equity March 31, 2023 December 31, 2022 Liabilities and Stockholders' Equity ($ in millions) Current liabilities: Accounts payable $ 48.5 $ 48.8 Deferred revenue 14.6 19.5 Other accrued liabilities 25.3 34.8 Current maturities of long-term debt 0.1 0.1 Total
Slide 23: Condensed Income Statement – Q1
Condensed Income Statement – Q1 Three Months Ended Three Months Ended Delta March 31, 2023 March 31, 2022 ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 115.5 $ 98.8 $ 16.7 16.9% Gross profit 23.3 20.2% 16.4 16.6% 6.8 41.6% SG&A 21.4 18.5% 17.3 17.5% 4.1 23.8% Amortizati
Slide 24: Condensed Cash Flows
Condensed Cash Flows Three Months Ended Three Months Ended ($ in millions) March 31, 2023 March 31, 2022 Net loss and other non-cash items from operations $ 3.4 $ 1.4 Receivables 26.2 (4.6) Contract assets (0.9) 1.1 Inventory (15.6) (4.8) Payables and deferred revenue 4.2 10.6 Trade working capital
Slide 25: Orders and Backlog
Orders and Backlog New Orders Entered – Three Months Ended ($ in millions) March 31, 2023 March 31, 2022 Delta Rail, Technologies, and Services $ 73.7 $ 91.4 $ (17.7) (19.3%) Precast Concrete Products 36.2 19.1 17.1 89.2% Steel Products and Measurement 29.6 24.9 4.7 18.9% Total $ 139.5 $ 135.4 $ 4.1
Slide 26: Segment Results – Q1
Segment Results – Q1 Three Months Ended Three Months Ended Delta Segment Sales March 31, 2023 March 31, 2022 ($ in millions) $ $ $ % Rail, Technologies, and Services $ 64.4 $ 63.7 $ 0.7 1.1% Precast Concrete Products 24.3 15.0 9.3 61.8% Steel Products and Measurement 26.8 20.1 6.7 33.6% Total $ 115.
Slide 27: Non-GAAP Measure: Funding Capacity and Free Cash Flow
Non-GAAP Measure: Funding Capacity and Free Cash Flow ( $ in millions) March 31, 2023 Cash and cash equivalents $ 2.6 Total availability under the credit facility 130.0 Outstanding borrowings on revolving credit facility (79.8) Letters of credit outstanding (1.1) Net availability under the revolving
Slide 28: Non-GAAP Measure: Net Debt
Non-GAAP Measure: Net Debt March 31, 2023 December 31, 2022 September 30, 2022 ($ in millions) Outstanding borrowings on revolving credit facility $ 79.8 $ 91.6 $ 98.8 Financing leases and financing arrangements 0.3 0.3 0.2 Total debt $ 80.1 $ 91.9 $ 98.9 Less cash and cash equivalents (2.6) (2.9) (
Slide 29: Non-GAAP Measure: Adjusted EBITDA
Non-GAAP Measure: Adjusted EBITDA Three Months Ended ($ in millions) March 31, March 31, 2023 2022 Net loss, as reported $ (2.2) $ (1.6) Interest expense, net 1.4 0.4 Income tax benefit (0.5) (0.5) Depreciation expense 2.5 2.0 Amortization expense 1.4 1.4 Total EBITDA $ 2.6 $ 1.7 Loss on divestiture