OAK BROOK, Ill., April 30, 2024 /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS) (the "Company"), a leader in environmental and safety solutions, today reported results for the first quarter ended March 31, 2024. First Quarter Highlights Net sales of $425 million, up $39 million, or 10%, from last year; organic growth of $28 million, or 7% Operating income of $54.3 million, up $14.8 million, or 37%, from last year GAAP EPS of $0.84, up $0.39, or 87%, from last year Adjusted EPS of $0.64, up $0.18, or ...

OAK BROOK, Ill., April 23, 2024 /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS) today announced that its Board of Directors declared a quarterly cash dividend of twelve cents ($0.12) per share on its common stock. The dividend is payable on May 31, 2024 to stockholders of record at the close of business on May 17, 2024. About Federal Signal Federal Signal Corporation (NYSE: FSS) builds and delivers equipment of unmatched quality that moves material, cleans infrastructure, and protects the communities ...

OAK BROOK, Ill., April 16, 2024 /PRNewswire/ -- Federal Signal Corporation (NYSE: FSS) (the "Company"), a leader in environmental and safety solutions, will announce first quarter earnings before the market opens on Tuesday, April 30, 2024.  The Company will also host an investor conference call and webcast at 10 a.m. Eastern Time the same day with Jennifer L. Sherman, president and chief executive officer, and Ian A. Hudson, senior vice president and chief financial officer. Investors and analysts may acce ...

bjdlzx/iStock via Getty Images Thesis Key ratios indicate Federal Signal Corporation is currently overvalued, but I have rated it a Buy nonetheless. It has grown rapidly since getting past the COVID-19 and supply chain issues of a few years ago, and should deliver more growth and capital gains in the long run. I have a one-year target price of $93.50, an increase of roughly 16% above the current price. About Federal Signal The company describes itself, in the 10-K for 2023, this way “The Company designs ...

Financial Data and Key Metrics Changes - Operating income for 2023 was $224.5 million, an increase of $63.7 million or 40% from the prior year [28] - Adjusted EBITDA for the year was $286 million, up $71 million or 33% compared to the prior year, with an adjusted EBITDA margin of 16.6%, up 160 basis points from last year [28] - GAAP earnings for the year equated to $2.56 per share, up $0.59 per share or 30% from the prior year [41] - Cash generated from operations during Q4 was $103 million, an increase of $64 million or 162% from Q4 last year [34] Business Line Data and Key Metrics Changes - ESG sales for Q4 were $373 million, an increase of $48 million or 15% compared to Q4 last year, with adjusted EBITDA of $73.3 million, up 27% [29] - SSG's Q4 sales were $75 million, up $9 million or 14%, with adjusted EBITDA of $16 million, up 21% [29] - Aftermarket revenues were up 24% over last year, contributing to 27% of ESG revenue in Q4 compared to 25% last year [52] Market Data and Key Metrics Changes - Orders for the year were $1.87 billion, an increase of $178 million or 11% from the prior year, with a consolidated backlog at an all-time high of $1.03 billion, up 17% [41] - Q4 order intake was $465 million, representing a 5% increase compared to last year [46] Company Strategy and Development Direction - The company remains focused on operational excellence, organic growth, and value-added M&A as strategic building blocks [63] - Plans for a phased rollout of the Federal Signal operating system in 2024 aim to drive efficiency gains and cost savings [64] - The company is optimistic about further margin expansion opportunities driven by internal efficiency initiatives and planned production increases [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for products, citing strong order intake and ongoing improvements in production levels [46][51] - The company expects net sales for 2024 to be between $1.85 billion and $1.9 billion, with adjusted EPS projected between $2.85 and $3.05 per share [60] - Management highlighted the potential long-term benefits from infrastructure legislation, although immediate impacts are not expected in 2024 [55][60] Other Important Information - The company paid dividends of $6.1 million during the quarter and announced a 20% increase in dividends for Q1 2024 [35] - The acquisition of Trackless has shown strong sales growth of over 30% in 2023 compared to 2022 [57] Q&A Session Summary Question: How much of the backlog is set for delivery in '24? - Management indicated they are in good shape for Class 8 chassis and are monitoring availability for Class 5 and Class 7 chassis, expecting improvements in the second half of the year [75][76] Question: How much of your 2023 growth would you attribute to price versus volume? - Management stated that for 2024, they expect 7% to 10% growth, with price contributing about 2.5% to 3% of that, while in 2023, price impact was between 3% and 4% [77] Question: What are the cash deployment priorities for 2024? - Management prioritized investment in organic growth initiatives, followed by M&A, competitive dividend yield, and opportunistic share buybacks [109]

Federal Signal Q4 2023 Earnings Call February 27, 2024 Safe Harbor This presentation also contains references to certain non-GAAP financial information. Such items are reconciled herein, in our earnings news release provided as of the date of this presentation or in other investor materials filed with the SEC. | --- | --- | |-------|--------------------------------------------------| | | | | • | Record net sales of $1.72 B, up $288 M, or 20% | | | Organic growth of $220 M, or 15% | | • | Operating income of ...

Federal Signal (FSS) came out with quarterly earnings of $0.74 per share, beating the Zacks Consensus Estimate of $0.67 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.45%. A quarter ago, it was expected that this company that makes products ranging from street sweepers to toll booth technology for government, industrial and commercial customers would post earnings of $0.65 per ...

OAK BROOK, Ill., Feb. 27, 2024 /PRNewswire/ -- Federal Signal Corporation (NYSE:FSS), a leader in environmental and safety solutions, today reported results for the fourth quarter and year ended December 31, 2023.  Fourth Quarter Highlights Net sales of $448 million, up $57 million, or 15%, from last year; organic growth of $42 million, or 11% Operating income of $63.1 million, up $16.5 million, or 35%, from last year Operating cash flow of $103 million, up $64 million, or 162%, from last year GAAP EPS of ...

Part I [Business](index=5&type=section&id=Item%201.%20Business) Federal Signal Corporation designs and supplies integrated solutions for municipal and industrial customers through its Environmental and Safety segments - The company operates through two main segments: **Environmental Solutions Group (ESG)** and **Safety and Security Systems Group (SSG)**[19](index=19&type=chunk) - In 2023, the company completed the acquisitions of **Trackless Vehicles Limited** and **Blasters, Inc.**, expanding its product portfolio[21](index=21&type=chunk) - As of December 31, 2023, the company employed approximately **4,500 people**, with 54% being U.S. hourly employees[36](index=36&type=chunk) [Business Segments](index=5&type=section&id=Item%201.%20Business.Segments) The Environmental Solutions Group produces maintenance vehicles while the Safety and Security Systems Group provides public warning systems - The Environmental Solutions Group is a leading manufacturer of street sweepers, sewer cleaners, industrial vacuum loaders, and other specialty vehicles under brands like Elgin, Vactor, Guzzler, and TRUVAC[22](index=22&type=chunk) - The Safety and Security Systems Group supplies comprehensive systems for community alerting, emergency vehicles, and industrial communications, with products including lightbars, sirens, and public warning systems[23](index=23&type=chunk) [Marketing and Distribution](index=6&type=section&id=Item%201.%20Business.Marketing%20and%20Distribution) The company utilizes a multi-channel approach, including dealer networks and direct sales, to reach its municipal and industrial customers - The Environmental Solutions Group uses both dealer networks and direct sales channels, with the **dealer network being a key competitive advantage**[24](index=24&type=chunk)[25](index=25&type=chunk) - The Safety and Security Systems Group sells through a multi-channel approach including wholesalers, distributors, and direct sales to a variety of customers[26](index=26&type=chunk) [Customers and Backlog](index=6&type=section&id=Item%201.%20Business.Customers%20and%20Backlog) The company has a diversified customer base and saw its total order backlog increase to $1.03 billion in 2023 Order Backlog Comparison | Metric | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | **Total Backlog** | $1.03 billion | $879 million | - No single customer represented **10% or more of net sales** in the three years ending December 31, 2023[27](index=27&type=chunk) [Human Capital Management](index=7&type=section&id=Item%201.%20Business.Human%20Capital%20Management) The company emphasizes an inclusive culture, employee development, and workplace safety for its 4,500 employees - The company is led by a female CEO, and **50% of its executive officers are female**, which is significantly above the Russell 3000 Index average[41](index=41&type=chunk) - Employees receive **over 10 hours of job training per year on average**, with some business units averaging nearly 80 hours per year[45](index=45&type=chunk) - The company is committed to human rights, aligning with UN principles, and has published a formal human rights policy[38](index=38&type=chunk) [Risk Factors](index=10&type=section&id=Item%201A.%20Risk%20Factors) The company faces macroeconomic, operational, and legal risks, including supply chain disruptions and product liability claims - The company is heavily dependent on the U.S. economy and municipal government spending, which accounted for approximately **78% of net sales in 2023**[62](index=62&type=chunk) - Supply chain disruptions continue to pose a risk, with ongoing shortages and extended lead times for key components like chassis and electronics, which could limit production[72](index=72&type=chunk) - The company is exposed to product liability claims, including lawsuits from firefighters alleging **hearing impairment from sirens**[91](index=91&type=chunk) - **Goodwill and intangible assets represent a significant portion of total assets** (29% and 13% respectively as of Dec 31, 2023), and impairment could negatively affect financial results[93](index=93&type=chunk) [Unresolved Staff Comments](index=16&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[95](index=95&type=chunk) [Cybersecurity](index=16&type=section&id=Item%201C.%20Cybersecurity) The company maintains a comprehensive cybersecurity program overseen by the Audit Committee and has experienced no material incidents to date - The company's cybersecurity risk management program is based on standards including the **National Institute of Standards and Technology (NIST) Cybersecurity Framework**[98](index=98&type=chunk) - The Board of Directors has delegated oversight of cybersecurity risk management to the Audit Committee, which receives regular reports from the CIO and CISO[101](index=101&type=chunk) [Properties](index=16&type=section&id=Item%202.%20Properties) The company operates 23 principal manufacturing plants totaling 3.7 million square feet, of which 63% is owned Property Overview (as of Dec 31, 2023) | Metric | Value | | :--- | :--- | | **Principal Manufacturing Plants** | 23 | | **Total Square Footage** | ~3.7 million sq ft | | - Manufacturing | ~2.5 million sq ft | | - Sales, Service, Office | ~1.2 million sq ft | | **Ownership Status** | 63% Owned, 37% Leased | [Legal Proceedings](index=17&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding legal proceedings is detailed in Note 13 of the consolidated financial statements - This section incorporates by reference the information in **Note 13 – Legal Proceedings**[105](index=105&type=chunk) [Mine Safety Disclosures](index=17&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[106](index=106&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=17&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's stock trades on the NYSE under "FSS" and $53.5 million remains authorized for share repurchases - The company's common stock is listed on the NYSE under the symbol **"FSS"**[108](index=108&type=chunk) - As of December 31, 2023, **$53.5 million remained authorized for share repurchases** under the plan established in March 2020[112](index=112&type=chunk) Q4 2023 Equity Repurchases | Period | Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | October 2023 | 21,083 | $59.5008 | | November 2023 | — | — | | December 2023 | — | — | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) The company achieved record financial results in 2023, with significant growth in sales, income, and operating cash flow - The company executed its M&A strategy with the acquisitions of **Blasters and Trackless**, marking 11 acquisitions since 2016[124](index=124&type=chunk) 2023 Financial Highlights (YoY) | Metric | 2023 Value | % Change YoY | | :--- | :--- | :--- | | **Orders** | $1.87 billion | +11% | | **Net Sales** | $1.72 billion | +20% | | **Operating Income** | $224.5 million | +40% | | **Net Income** | $157.4 million | +31% | | **Adjusted EBITDA** | $286.0 million | +33% | | **Operating Cash Flow** | $194 million | +171% | [Results of Operations](index=21&type=section&id=Item%207.%20MD&A.Results%20of%20Operations) Net sales grew 20% to $1.72 billion in 2023, driving a 40% increase in operating income and margin expansion to 13.0% Consolidated Results of Operations (in millions) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,722.7 | $1,434.8 | $1,213.2 | | **Gross Profit** | $450.2 | $344.9 | $288.7 | | **Operating Income** | $224.5 | $160.8 | $130.7 | | **Net Income** | $157.4 | $120.4 | $100.6 | | **Diluted EPS** | $2.56 | $1.97 | $1.63 | Adjusted EBITDA Reconciliation (in millions) | Metric | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net Income** | $157.4 | $120.4 | $100.6 | | **Adjustments** | $128.6 | $94.6 | $79.9 | | **Adjusted EBITDA** | $286.0 | $215.0 | $180.5 | | **Adjusted EBITDA Margin** | 16.6% | 15.0% | 14.9% | [Segment Analysis](index=23&type=section&id=Item%207.%20MD&A.Segment%20Analysis) Both segments reported strong growth, with the Environmental Solutions Group's operating income up 45% and the Safety and Security Group's up 34% Environmental Solutions Group Performance (in millions) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $1,437.9 | $1,190.6 | +21% | | **Operating Income** | $209.2 | $144.5 | +45% | | **Operating Margin** | 14.5% | 12.1% | +2.4 p.p. | | **Total Orders** | $1,578.0 | $1,444.2 | +9% | Safety and Security Systems Group Performance (in millions) | Metric | 2023 | 2022 | % Change | | :--- | :--- | :--- | :--- | | **Net Sales** | $284.8 | $244.2 | +17% | | **Operating Income** | $54.8 | $40.8 | +34% | | **Operating Margin** | 19.2% | 16.7% | +2.5 p.p. | | **Total Orders** | $292.1 | $248.0 | +18% | [Financial Condition, Liquidity and Capital Resources](index=25&type=section&id=Item%207.%20MD&A.Financial%20Condition%2C%20Liquidity%20and%20Capital%20Resources) Liquidity strengthened with operating cash flow rising to $194.4 million and net borrowing availability of $492.7 million at year-end - The company entered into a new **$800 million senior secured credit facility** in October 2022, consisting of a $675 million revolver and a $125 million term loan, maturing in 2027[163](index=163&type=chunk) - As of December 31, 2023, the company had **$492.7 million of net availability for borrowings** under its credit facility[169](index=169&type=chunk) - Capital expenditures for 2024 are anticipated to be in the range of **$35 million to $40 million**[172](index=172&type=chunk) Cash Flow Summary (in millions) | Cash Flow Activity | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $194.4 | $71.8 | $101.8 | | **Net Cash for Investing Activities** | ($83.7) | ($99.7) | ($168.7) | | **Net Cash (for)/from Financing Activities** | ($97.9) | $35.5 | $26.4 | [Critical Accounting Policies and Estimates](index=29&type=section&id=Item%207.%20MD&A.Critical%20Accounting%20Policies%20and%20Estimates) The company's critical estimates relate to goodwill and intangible assets, for which no impairment was recognized in 2023 - Goodwill is tested for impairment annually at the reporting unit level using qualitative or quantitative assessments[183](index=183&type=chunk)[184](index=184&type=chunk) - The 2023 annual impairment test resulted in **no impairment charges** for goodwill or indefinite-lived intangible assets[193](index=193&type=chunk)[199](index=199&type=chunk) - For the reporting unit tested quantitatively in 2023, its **fair value exceeded its carrying value by more than 20%**[192](index=192&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=31&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages interest rate and foreign exchange risks using derivatives and natural hedges - The company had two interest rate swaps with an aggregate notional amount of **$150.0 million** to fix the interest rate on a portion of its variable-rate debt[202](index=202&type=chunk) - A hypothetical **1% increase or decrease in variable interest rates** would change annual interest expense by approximately **$1.5 million**[202](index=202&type=chunk) - A hypothetical **10% appreciation of the U.S. dollar** against other currencies would reduce full-year net sales by approximately **2%** and operating income by approximately **1%**[203](index=203&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section contains the consolidated financial statements and the independent auditor's report from Deloitte & Touche LLP [Report of Independent Registered Public Accounting Firm](index=33&type=section&id=Item%208.%20Financial%20Statements.Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued an unqualified opinion on the financial statements and internal controls, identifying goodwill valuation as a critical audit matter - The auditor, Deloitte & Touche LLP, issued an **unqualified opinion** on both the financial statements and the internal control over financial reporting[209](index=209&type=chunk)[220](index=220&type=chunk) - The audit identified the **valuation of goodwill for one specific reporting unit as a Critical Audit Matter**, citing the high degree of judgment required for assumptions related to projected sales, EBITDA, and market multiples[216](index=216&type=chunk) - The audit of internal controls excluded the recently acquired Trackless, which constituted **2% of total assets and 1% of net sales for 2023**[222](index=222&type=chunk) [Notes to Consolidated Financial Statements](index=41&type=section&id=Item%208.%20Financial%20Statements.Notes%20to%20Consolidated%20Financial%20Statements) The notes detail key financial events, including acquisitions, debt facilities, tax matters, and legal contingencies - Note 2 details the 2023 acquisitions of **Trackless for C$56.3M** plus a contingent earn-out, and **Blasters for $13.0M** plus a contingent earn-out[296](index=296&type=chunk)[304](index=304&type=chunk) - Note 13 discusses the ongoing hearing loss litigation; the company has entered into settlement frameworks to resolve a majority of claims and has **recognized an estimated liability** for the potential settlement amount[441](index=441&type=chunk)[444](index=444&type=chunk) - Note 10 reveals the company filed amended tax returns for 2015-2018 to claim a worthless stock deduction, resulting in a **refund claim of $13.6 million**, which was fully reserved as an unrecognized tax benefit at year-end 2023 but approved for payment in Q1 2024[395](index=395&type=chunk) Net Sales by Segment (in millions) | Segment | 2023 | 2022 | 2021 | | :--- | :--- | :--- | :--- | | **Environmental Solutions** | $1,437.9 | $1,190.6 | $1,004.0 | | **Safety and Security Systems** | $284.8 | $244.2 | $209.2 | | **Total Net Sales** | **$1,722.7** | **$1,434.8** | **$1,213.2** | [Controls and Procedures](index=79&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of year-end 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2023[505](index=505&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2023, based on the COSO framework (2013)[506](index=506&type=chunk) - The 2023 acquisition of **Trackless was excluded** from management's assessment of internal controls over financial reporting[507](index=507&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=80&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, officers, and governance is incorporated by reference from the 2024 proxy statement - This section incorporates information by reference from the company's **2024 definitive proxy statement**[513](index=513&type=chunk)[514](index=514&type=chunk)[515](index=515&type=chunk) [Executive Compensation](index=80&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the 2024 proxy statement - This section incorporates information by reference from the company's **2024 definitive proxy statement**[516](index=516&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=80&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership and equity compensation plans is incorporated by reference from the 2024 proxy statement - This section incorporates information by reference from the company's **2024 definitive proxy statement**[517](index=517&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=80&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding related party transactions and director independence is incorporated by reference from the 2024 proxy statement - This section incorporates information by reference from the company's **2024 definitive proxy statement**[518](index=518&type=chunk) [Principal Accounting Fees and Services](index=80&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding accountant fees and services is incorporated by reference from the 2024 proxy statement - This section incorporates information by reference from the company's **2024 definitive proxy statement**[518](index=518&type=chunk) Part IV [Exhibits, Financial Statement Schedules](index=81&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and exhibits filed with the report - The consolidated financial statements are contained under **Item 8** of this Form 10-K[520](index=520&type=chunk) - All financial statement schedules have been omitted because they are not required or are inapplicable[520](index=520&type=chunk) [Form 10-K Summary](index=81&type=section&id=Item%2016.%20Form%2010-K%20Summary) No Form 10-K summary is provided - None[522](index=522&type=chunk)

Financial Performance Highlights - Federal Signal achieved record net sales of $446 million, a $100 million or 29% increase compared to Q3 2022[5] - The company reported organic growth of $80 million, representing a 23% increase[5] - Operating income reached $62.5 million, up $23 million or 58% year-over-year[5] - Adjusted EBITDA was $78.5 million, a $25 million or 47% increase compared to the same period last year[5] - Adjusted EBITDA margin improved to 17.6%, compared to 15.4% in Q3 2022[5] - GAAP EPS and adjusted EPS both reached a record of $0.71, up $0.19 or 37%, and $0.18 or 34%, respectively[5] Orders and Backlog - Orders totaled $450 million, an increase of $68 million or 18% year-over-year[5] - Backlog reached $1.01 billion, up $182 million or 22% compared to Q3 2022[5] Segment Performance - Environmental Solutions Group (ESG) net sales grew by 31% year-over-year[13] - Safety and Security Systems Group (SSG) net sales grew by 19% year-over-year, with a 120-basis point improvement in adjusted EBITDA margin[13] Outlook - The company is raising its full-year adjusted EPS outlook to a new range of $2.44 to $2.52[24] - Federal Signal is also raising the low end of its full-year net sales outlook by $30 million, establishing a new range of $1.68 billion to $1.72 billion, representing a year-over-year growth of 17% - 20%[24]