Company Overview - L.B. Foster's 2020 net sales were $497 million, with $398.3 million from the United States, $44.6 million from the United Kingdom, $34.5 million from Canada, and $20.0 million from other regions[6,8] - The company's Q1 2021 revenue was $116.1 million, with an adjusted EBITDA of $2.7 million and a backlog of $271.9 million[8] - New orders in Q1 2021 reached $135.6 million[8] - Adjusted earnings per diluted share for 2020 were $0.981[7] Segment Performance - Rail Technologies and Services accounted for 56% ($276 million) of the company's revenue as of December 31, 2020, while Infrastructure Solutions contributed 44% ($221 million)[14] - Rail Technologies and Services Q1 2021 revenue was $66 million, and Infrastructure Solutions revenue was $50 million[20] - Rail Technologies and Services new orders for Q1 2021 were $62.9 million, a 16.5% decrease year-over-year, while Infrastructure Solutions new orders were $66.9 million, a 20.7% increase[73] Financial Highlights - The company's adjusted net leverage ratio as of Q1 2021 was 1.1x[12] - Free cash flow for the trailing twelve months (TTM) ending March 31, 2021, was $25.4 million, resulting in a 13.4% free cash flow yield[42] - Net debt decreased by $5.6 million in Q1 2021 to $31.8 million[47] - Sales decreased by 4.8% from $121.9 million to $116.1 million in Q1 2021 compared to Q1 2020[36]

Financial Performance - Q1 2021 revenue was $116.1 million, a decrease of $5.8 million or 4.8% compared to Q1 2020[8, 16] - Adjusted EBITDA for Q1 2021 was $2.7 million, a decrease of $2.1 million compared to the prior year quarter[8, 9, 16] - Net debt as of March 31, 2021, was approximately $31.8 million, a $26.0 million decrease from the prior year quarter[11] - Total available funding capacity as of March 31, 2021, was approximately $82.6 million, an increase of approximately $5.7 million over December 31, 2020[10] - The company's adjusted net leverage ratio was 1.1x for the twelve months ended March 31, 2021[11] - The company generated exceptional free cash flow, resulting in a 13.4% TTM free cash flow yield[30] Orders and Backlog - Backlog levels remain strong at $271.9 million, an increase of $34.7 million or 15% over the prior year quarter[8, 10, 16] - New orders for Q1 2021 were $135.6 million, an increase of $4.8 million or 3.7% compared to Q1 2020[8, 16] - The company's TTM Q1 2021 consolidated book-to-bill ratio was 1.09[10] Segment Performance - Rail Technologies and Services segment sales decreased by $4.0 million or 5.7% to $66.2 million[21] - Infrastructure Solutions segment sales decreased by $1.9 million or 3.6% to $49.8 million[21] - Infrastructure Solutions backlog increased 17% year-over-year, despite the reduction experienced in the Coatings and Measurement business unit[45]

Financial Data and Key Metrics Changes - The first quarter revenue was $116.1 million, a decrease of $5.8 million or 4.8% compared to $121.9 million in the same quarter last year [22][8] - Consolidated gross profit decreased by $4.3 million, resulting in a gross profit margin of 16.2%, down 280 basis points year-over-year [22][12] - The net loss from continuing operations was $1.3 million, or $0.12 per diluted share, compared to a negligible loss in the prior year [24] - Adjusted EBITDA totaled $2.7 million, a decrease of $2.1 million year-over-year [25] Business Line Data and Key Metrics Changes - Rail segment revenue decreased by $4 million year-over-year, primarily due to timing of deliveries and customer delays [26] - Infrastructure Solutions revenue was down $1.9 million, driven by the coatings and measurement business unit, while fabricated steel and precast concrete revenues increased significantly [28] - Despite revenue decline, rail segment gross profit increased by $300,000, resulting in a 150 basis point improvement in gross profit margin [27] Market Data and Key Metrics Changes - Consolidated orders in Q1 were $135.6 million, an increase from $130.8 million last year, driven by the infrastructure solutions segment [31] - The backlog stood at $271.9 million at the end of Q1, an increase of $34.7 million or 14.6% compared to the previous year [42] Company Strategy and Development Direction - The company is focusing on capitalizing on post-pandemic trends and the need for infrastructure investment [45] - There is an emphasis on expanding into markets beyond energy, including water infrastructure and petrochemical applications [96][97] - The company anticipates further debt reduction in 2021, supported by tax refunds and strong cash flow generation [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the second quarter, expecting a significant increase in volume due to a strong backlog and improving market conditions [18][57] - The rail industry is showing signs of recovery, with increasing passenger and freight traffic [15][48] - The coatings and measurement business is expected to remain weak, but there are signs of potential recovery in the energy pipeline sector [54][55] Other Important Information - The company generated strong operating cash flow of $7.6 million, a $12.5 million increase year-over-year [33] - Total available funding capacity was $82.6 million at quarter-end, with net debt reduced to $31.8 million [37] Q&A Session Summary Question: What variables will impact SG&A as revenues rebound? - Management indicated that SG&A will likely increase with a return to normalcy and business travel, but they have control over expenses [62][63] Question: Will improved confidence in backlog carry over into order activity? - Management confirmed that strong backlog and increased spending from freight rail companies suggest positive order activity in the upcoming quarters [65][66] Question: What is the sequence of the tax refund process? - The tax refund is expected to be received in portions, with half anticipated in Q2 and the remainder by early Q4, depending on IRS processing [75][76] Question: How are rising raw material costs affecting the company? - Management noted that while steel prices are rising, they do not expect significant margin compression due to effective management of input costs [81][82]

Financial Performance - Net sales for Q1 2021 were $116,080, a decrease of $5,827 or 4.8% compared to the prior year quarter, with Rail and Infrastructure Solutions segments declining by 5.7% and 3.6% respectively[95]. - Gross profit for Q1 2021 was $18,830, a decrease of $4,292 or 18.6% from the prior year quarter, with a consolidated gross profit margin of 16.2%, down 280 basis points[96]. - Selling and administrative expenses decreased by $2,311 or 11.4% from the prior year quarter, with expenses as a percentage of net sales decreasing to 15.5%, down 120 basis points[97]. - Net loss from continuing operations for Q1 2021 was $1,270 or $0.12 per diluted share, a reduction of $1,265 or $0.12 per diluted share from the prior year quarter[98]. - Total net sales for Q1 2021 were $116,080, a decrease of $5,827 or 4.8% compared to Q1 2020[105]. - Gross profit for Q1 2021 was $18,830, down $4,292 or 18.6% year-over-year, with a gross profit margin of 16.2%[106]. - Rail Technologies and Services segment net sales decreased by $3,972 or 5.7%, while gross profit increased by $313 or 2.5%[112]. - Infrastructure Solutions segment net sales decreased by $1,855 or 3.6%, with gross profit declining by $4,605 or 43.3%[116]. Backlog and Orders - Backlog increased by 16.5% for the Infrastructure Solutions segment and 12.4% for the Rail segment compared to the prior year period, indicating ongoing spending in infrastructure markets[99]. - The consolidated backlog stood at $271,944 as of March 31, 2021, an increase of $23,712 or 9.6% from December 31, 2020, and an increase of $34,704 or 14.6% over the prior year period[102]. - The Infrastructure Solutions segment backlog increased by $22,482 or 17.7% sequentially from December 31, 2020, driven by strong order activity in Precast Concrete Products[100]. - The Rail segment backlog improvement of $13,551 year-over-year was primarily in the Rail Products business line, with expectations for further recovery in Rail Technologies[101]. - New orders in the Infrastructure Solutions segment increased by 20.7% compared to the prior year quarter[118]. - Total backlog as of March 31, 2021 was $271,944, an increase of $23,712 or 9.5% from March 31, 2020[119]. Cash Flow and Liquidity - The Company had cash and cash equivalents of $5,015 and total available funding capacity of $82,633 as of March 31, 2021[121]. - For the three months ended March 31, 2021, net cash provided by continuing operating activities was $7,614, compared to a use of $4,902 in the same period of 2020, representing a significant improvement[124]. - The net loss from continuing operations and adjustments provided $2,310 in the current period, an improvement from $4,752 in the prior year[124]. - Capital expenditures for the three months ended March 31, 2021, were $1,327, down from $2,806 in the same period of 2020, primarily related to the expansion of the Precast Concrete Products business line in Texas[126]. - The Company reduced outstanding debt by $8,295 during the three months ended March 31, 2021, compared to an increase of $6,017 in the same period of 2020[127]. - As of March 31, 2021, the Company had $5,015 in cash and cash equivalents, with approximately $4,488 held in non-domestic bank accounts[128]. - The Company's current ratio as of March 31, 2021, was 1.86, indicating a strong liquidity position[129]. - The revolving credit facility had $77,618 of net availability as of March 31, 2021, with total capacity reduced to $115,000[130][131]. - The net decrease in cash and cash equivalents for the three months ended March 31, 2021, was $(2,549), an improvement from $(7,760) in the same period of 2020[123]. Tax and Expenses - The effective income tax rate for Q1 2021 was 20.2%, significantly lower than 92.1% in the prior year quarter[108]. - Days sales outstanding improved to 48 days as of March 31, 2021, down from 51 days at December 31, 2020, indicating a high-quality receivables portfolio[125]. - Gross profit margins are expected to improve as sales on certain consumables and service work return, with an anticipated strong sequential increase in sales from Q1 to Q2 2021[102]. - Selling and administrative expenses decreased by $2,311 or 11.4% compared to the prior year quarter, primarily due to cost containment measures[107]. Risk Management - The Company entered into forward starting LIBOR-based interest rate swaps with notional values totaling $50,000 to mitigate interest rate risks[132].

LBFoster. Q4 2020 Earnings Presentation March 2, 2021 Bob Bauer – President and Chief Executive Officer Jim Kempton – Controller and Principal Accounting Officer Safe Harbor Statement This presentation may contain "forward-looking" statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements provide management's current expectations of future events based on certain assumptions and inclu ...

Financial Performance - Total net sales decreased by 19.3% to $497.4 million in 2020 from $616.4 million in 2019[211]. - Gross profit declined to $95.0 million, representing a gross margin of 19.1%, down from $120.9 million in 2019[211]. - Net income for 2020 was $7.6 million, a significant decrease from $42.6 million in 2019[211]. - Basic earnings per share from continuing operations were $2.45, down from $4.61 in the previous year[211]. - The company reported a net income of $25,823,000 for 2020, down from $47,974,000 in 2019, indicating a decline of 46.1%[218]. - Segment profit for 2020 was $24,571, down from $43,256 in 2019, reflecting a decline of 43.1%[257]. - The company reported a net loss of $1,866 million for the first quarter of 2020, with a basic loss per share of $0.18[380]. Assets and Liabilities - Total current assets decreased by 9.8% to $195.3 million in 2020 from $216.7 million in 2019[208]. - Total liabilities decreased by 18.5% to $193.5 million in 2020 from $237.7 million in 2019[208]. - Stockholders' equity increased to $176.8 million, up from $169.9 million in 2019[208]. - Cash and cash equivalents decreased by 46.6% to $7.6 million in 2020 from $14.2 million in 2019[208]. - Accounts receivable increased significantly to $15,722,000 in 2020 from $3,368,000 in 2019, reflecting a rise of 366.5%[218]. - Total segment assets decreased to $299,004 in 2020 from $317,011 in 2019, a reduction of 5.4%[257]. - The company had long-term debt of $45,024 million as of December 31, 2020, down from $58,152 million in 2019, a reduction of approximately 22.5%[294]. Cash Flow and Expenditures - Net cash provided by continuing operating activities for the year ended December 31, 2020, was $20,549,000, a decrease of 21.5% from $26,242,000 in 2019[218]. - Total capital expenditures on property, plant, and equipment for 2020 were $9,179,000, an increase of 52.5% from $6,026,000 in 2019[218]. - The net cash used in continuing financing activities was $15,277,000 in 2020, compared to $18,209,000 in 2019, indicating a decrease of 10.7%[218]. Revenue Recognition and Contracts - The Company’s performance obligations under long-term agreements are generally satisfied over time, impacting revenue recognition[199]. - Significant changes in estimates for long-term contracts could impact the timing and amount of revenue and profitability[199]. - Revenue from long-term agreements accounted for 29.4% of total revenue in 2020, compared to 30.3% in 2019[263]. - Revenue recognized over time using an input measure was $101,160 in 2020, down from $136,014 in 2019, a decline of 25.7%[263]. Tax and Deferred Tax Assets - The Company had total deferred tax assets of $47.1 million, net of $1.5 million of valuation allowances as of December 31, 2020[202]. - The company has total deferred tax assets of $48,537 as of December 31, 2020, with a valuation allowance of $1,483[312]. - The federal net operating loss (NOL) carryforward as of December 31, 2020, was $78,300, which can be carried forward indefinitely[316]. - As of December 31, 2020, the total unrecognized tax benefits amounted to $409 million, down from $481 million in 2019, reflecting a decrease of approximately 15%[322]. Interest Rate and Financial Instruments - A 1% change in the interest rate for variable rate debt would have increased or decreased interest expense by approximately $905 for the year ended December 31, 2020[187]. - The Company entered into three forward starting LIBOR-based interest rate swap agreements with notional values totaling $50,000[189]. - The interest rate swap liability was $1,097 and $480 for the years ended December 31, 2020 and 2019, respectively[189]. - The fair value of interest rate swaps was $1,097 million, compared to $480 million as of December 31, 2019[340]. - The company recognized interest income of $470 million from the change in fair value of interest rate swaps for the twelve months ended December 31, 2020[341]. Pension and Retirement Plans - The company maintains three retirement plans covering its employees in the United States, including one frozen defined benefit plan and two defined contribution plans[343]. - The projected benefit obligation for the United States defined benefit plan increased to $8,448 million in 2020 from $7,809 million in 2019, reflecting a change of 8.2%[346]. - The funded status of the United States defined benefit plan at the end of 2020 was $(3,989) million, worsening from $(3,449) million in 2019[346]. - The projected benefit obligation for the United Kingdom defined benefit plan increased to $10,265 million in 2020 from $9,101 million in 2019, a rise of 12.8%[356]. - The funded status of the United Kingdom defined benefit plan at the end of 2020 was $(2,290) million, compared to $(1,811) million in 2019[356]. Environmental and Legal Liabilities - The company is obligated to pay a total of $50 million under the Settlement Agreement with Union Pacific Railroad, with $8 million scheduled for annual payments from 2021 to 2024[371]. - The company's environmental liability balance as of December 31, 2020, was $2,562 million, down from $2,608 million in 2019[377]. - The company expects to incur environmental remediation costs estimated by the EPA to be approximately $1.1 billion to $1.7 billion for the Portland Harbor Superfund Site cleanup[376].

Financial Data and Key Metrics Changes - In Q4 2020, sales were $115.6 million, an 18.2% decrease from $141.3 million in Q4 2019 [12] - Consolidated gross profit decreased by $6.5 million year-over-year, with a gross profit margin of 18.8%, down 120 basis points from Q4 2019 [12] - Net income from continuing operations was $2.3 million or $0.21 per diluted share, compared to $30.2 million or $2.83 per diluted share in Q4 2019 [17] - Adjusted EBITDA totaled $6.9 million in Q4 2020, a decrease of $3.9 million compared to Q4 2019 [18] - For the full year 2020, revenues were $497.4 million, down from $616.4 million in 2019, leading to a gross profit of $95 million compared to $120.9 million in 2019 [18][20] Business Line Data and Key Metrics Changes - Rail Technologies and Services segment saw a decline in sales due to project delays, with Rail Products business sales down approximately $2.7 million and Rail Technologies down about $7 million [14] - Infrastructure Solutions segment experienced a 25% decrease in revenue volumes quarter-over-quarter, primarily due to challenges in the oil and gas markets [15] - The Coatings and Measurement business unit, serving the midstream energy market, contributed significantly to the revenue decline in the Infrastructure Solutions segment [15][53] Market Data and Key Metrics Changes - Overall orders in Q4 were $134.4 million, down from $175.4 million in the previous year, but showed a 3% sequential improvement compared to Q3 [30] - Backlog increased to $248.2 million, an 8.4% increase compared to December 31, 2019, indicating positive signs despite market challenges [31] Company Strategy and Development Direction - The company realigned its operating segments to better serve infrastructure markets, consolidating the former Construction Products and Tubular and Energy segments into the Infrastructure Solutions segment [10] - Focus on leveraging opportunities in the Infrastructure Solutions segment to improve returns on capital and streamline operations [38] - The Rail Technologies and Services segment aims to integrate new technologies and enhance service offerings as part of its growth strategy [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the resilience of rail and general infrastructure projects, despite challenges in the energy sector [43] - Anticipated profitability in Q1 for Infrastructure Solutions to remain low, but expected significant sequential sales increases in Q2 due to backlog conversion [61][65] - Concerns about the ongoing pandemic and its impact on project completion and cash flow, particularly in the UK [56][60] Other Important Information - The company expects a tax refund of approximately $9 million related to the divestiture of the IOS Test and Inspection Services business [25] - Capital expenditures in 2020 were approximately $9.2 million, with expectations for lower spending in 2021 [55] Q&A Session Summary Question: Resilience vs. Recovery - Management indicated that the resilience observed in certain business areas is expected to lead to improved performance in 2021, with a strong backlog supporting this outlook [70][72] Question: Impact of American Rescue Plan and Infrastructure Bill - Management noted that infrastructure bills typically provide an uplift to their business, with specific transit rail funding expected to benefit operations [75][78] Question: London Crossrail Project Progress - The project is experiencing similar COVID-related disruptions as in Q3, but there is an expectation for increased work in 2021 [80] Question: Precast Concrete Business Drivers - New product launches and market expansions are expected to drive growth in the Precast Concrete business [83][86] Question: Midstream Business Considerations - Management is exploring diversification opportunities in the Coatings and Measurement business, particularly in water applications [92][96] Question: Bridge Business Outlook - The bridge business is expected to perform well due to a strong backlog and ongoing projects, with capacity to handle increased demand from potential federal infrastructure funding [104][106]

Financial Performance - Net sales for the three months ended September 30, 2020, were $118,365, a decrease of $26,483 or 18.3% compared to the prior year quarter, with declines across all segments due to COVID-19 disruptions[110]. - Gross profit decreased by $5,890 to $22,061, with a gross profit margin of 18.6%, down 70 basis points from the prior year, primarily due to a 55.6% decrease in the Tubular and Energy Services segment[111]. - Selling and administrative expenses decreased by $3,969, or 18.9%, driven by personnel-related cost reductions, with expenses as a percentage of sales decreasing by 10 basis points[112]. - Net income from continuing operations was $16,578, or $1.56 per diluted share, compared to $3,754, or $0.35 per diluted share, in the prior year quarter[115]. - Net sales for the nine months ended September 30, 2020, were $381,835, a decrease of $93,262 or 19.6% compared to the prior year, with declines across all segments due to COVID-19 disruptions[131]. - Gross profit for the same period decreased by $19,419 to $73,321, with a gross profit margin of 19.2%, down 30 basis points from the prior year, primarily due to reduced sales in the Tubular and Energy Services segment[132]. - Selling and administrative expenses decreased by $6,598, or 10.5%, driven by personnel-related cost reductions and third-party service expenses, although as a percentage of sales, these expenses increased by 150 basis points[133]. - Net income from continuing operations was $23,543, or $2.21 per diluted share, compared to $17,773, or $1.67 per diluted share, in the prior year[135]. Segment Performance - The Company reported a year-over-year increase in new orders of 8.3% in Construction Products and 6.6% in Rail Products and Services for the three months ended September 30, 2020, leading to backlog increases of 36.6% and 23.9%, respectively[102]. - Sales in the Tubular and Energy Services segment declined by 29.4% year-to-date for 2020, with orders down by 50.8%, resulting in a substantial decrease in backlog compared to September 30, 2019[107]. - The Construction Products segment backlog increase was driven by strong order activity in the Piling and Fabricated Bridge division, with production rates expected to remain near capacity levels[104]. - The Rail Products and Services segment anticipates further recovery in Rail Technologies, particularly in the UK, with strong transit-based bookings reported in the third quarter of 2020[103]. - Rail Products and Services segment sales decreased by $3,753, or 5.5%, primarily due to reduced sales in the Rail Technologies business unit[117]. - Construction Products segment sales decreased by $9,292, or 19.7%, attributed to volume decreases in both the Piling and Fabricated Bridge division and the Precast Concrete Products division[121]. - Tubular and Energy Services segment sales decreased by $13,438, or 44.9%, due to deteriorated conditions in the U.S. oil and gas market, with a significant drop in demand[127]. - New orders in the Rail Products and Services segment decreased by 9.7%, while the Construction Products segment saw a 2.4% increase in new orders, indicating mixed market conditions[139][144]. - The Tubular and Energy Services segment experienced a 50.8% decrease in new orders, reflecting reduced capital spending and project delays in the domestic oil and gas market[148]. Operational Challenges - The Company expects continued disruptions in operations due to COVID-19, with minimal disruption to its on-premise workforce and ongoing pandemic protocols[101]. - The Tubular and Energy Services segment is projected to experience material declines in sales for the remainder of 2020 and into 2021 due to the significant drop in oil demand[107]. - The Company continues to monitor budget shortfalls incurred by transit operators, with long-term planning projects moving forward despite current challenges[103]. Tax and Financial Position - The Company anticipates receiving approximately $9.008 million in tax refunds within the next year due to extended carryback provisions in the CARES Act[106]. - The effective income tax rate for the quarter was (484.6)%, with an income tax benefit of $13,742 compared to an expense of $836 in the prior year quarter[113][114]. - The effective income tax rate for the nine months ended September 30, 2020, was (98.8)%, with an income tax benefit of $11,698 compared to an expense of $3,883 in the prior year, influenced by a discrete tax benefit related to a business disposition[134]. - The company anticipates receiving approximately $9,008 million in tax refunds due to the sale of its Test and Inspection Services business[162]. Cash and Debt Management - Cash and cash equivalents as of September 30, 2020, were $9,311 million, with total available funding capacity of $79,416 million[151]. - Net cash provided by continuing operating activities for the nine months ended September 30, 2020, was $16,201 million, compared to $10,311 million in the prior year[152]. - Capital expenditures for the nine months ended September 30, 2020, were $7,650 million, up from $2,510 million in the same period of 2019[155]. - The company reduced outstanding debt by $9,033 million during the nine months ended September 30, 2020[157]. - Total debt as of September 30, 2020, was $49,104 million, down from $58,152 million as of December 31, 2019[150]. - The company's current ratio as of September 30, 2020, was 2.05, indicating strong liquidity[159]. - A 1% change in interest rates for variable rate debt would increase or decrease interest expense by approximately $753 million[167]. - The company recorded a current liability of $1,332 million related to its LIBOR-based interest rate swap agreements as of September 30, 2020[169].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended June 30, 2020 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number: 000-10436 L.B. Foster Company (Exact name of registrant as specified in its charter) Pennsylvania 25-1324733 (State of Incorporation) ...

FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly period ended March 31, 2020 Or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from to Commission File Number: 000-10436 L.B. Foster Company (Exact name of Registrant as specified in its charter) Pennsylvania 25-1324733 (State of Incorporation) ...