Core Insights - L.B. Foster Company reported strong cash generation and improved profitability in Q4 2024, with rail segment sales up 14.2% and gross margins increasing by 300 basis points to 22.2% [2][4][9] - The infrastructure segment faced challenges, with sales down 25.2% and gross margins decreasing by 90 basis points to 22.6% due to lower pipeline coating volumes [2][4][13] - The company achieved a net loss of $0.3 million in Q4 2024, an improvement from a loss of $0.5 million in the prior year [4][26] - Free cash flow was stronger than expected, allowing for debt reduction and an increase in share repurchases, totaling 300,302 shares or approximately 3% of outstanding shares [2][4][5] Financial Performance - Q4 2024 net sales were $128.2 million, a decrease of 5.0% from the prior year, while full-year 2024 net sales totaled $530.8 million, down 2.4% [4][12] - Gross profit for Q4 2024 was $28.6 million, flat compared to the prior year, with a gross profit margin of 22.3%, reflecting a 100 basis point improvement [4][6] - Selling and administrative expenses decreased by 10.4% in Q4 2024, contributing to improved operating income of $3.1 million [4][6][14] Segment Analysis - Rail, Technologies, and Services segment saw net sales of $79.2 million in Q4 2024, up 14.2% year-over-year, with gross profit increasing by 31.7% [7][9] - Infrastructure Solutions segment reported net sales of $49.0 million in Q4 2024, down 25.2% from the previous year, with a significant decline in gross profit [10][13] - New orders for the Rail segment decreased by 8.5%, while the Infrastructure segment saw a 14.9% increase in new orders [7][10] Guidance and Strategic Outlook - The company provided 2025 financial guidance, expecting net sales between $540 million and $580 million and adjusted EBITDA between $42 million and $48 million [3][4] - The guidance reflects a projected 34% growth in adjusted EBITDA driven by 5.5% organic sales growth, supported by federal infrastructure investment [2][3] - A new three-year $40 million share repurchase program was authorized, indicating confidence in future performance [5][4]

Core Viewpoint - L.B. Foster Company will release its fourth quarter and full year 2024 operating results on March 4, 2025, and will host a conference call to discuss these results and the market outlook [1][2]. Group 1: Earnings Release and Conference Call - The earnings release is scheduled for pre-market opening on March 4, 2025 [1]. - A conference call will take place at 11:00 A.M. Eastern Time on the same day to discuss operating results and business developments [1]. - The conference call will be available as a live webcast on the Company's Investor Relations page [2]. Group 2: Participation Details - Interested participants can register for the question-and-answer session to receive dial-in numbers and a unique PIN [3]. - It is recommended to join the call 10 minutes prior to the start time [3]. Group 3: Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider focused on engineered products and services for infrastructure [4]. - The Company operates in North America, South America, Europe, and Asia, addressing safety, reliability, and performance needs [4].

Core Viewpoint - L.B. Foster Company reported significant earnings growth in Q3 2024, with adjusted earnings surpassing expectations despite a decline in revenues and new orders. Financial Performance - The company logged Q3 2024 earnings of $3.27 per share, a substantial increase from 5 cents per share in the same quarter last year. Adjusted earnings were 54 cents per share, exceeding the Zacks Consensus Estimate of 49 cents [1] - Revenues for the quarter were $137.5 million, down approximately 5% year over year, and missed the Zacks Consensus Estimate of $144.6 million [2] - New orders totaled $96 million, reflecting a decrease of around 4% year over year [3] Segment Performance - Sales from the Rail, Technologies, and Services segment fell 8.5% year over year to $79.5 million, primarily due to a decline in Rail Products, which offset gains in Global Friction Management and Technology Services and Solutions [4] - The Infrastructure Solutions segment reported sales of $58 million, down roughly 1% year over year, impacted by the exit of the bridge grid deck product line [4] Financial Position - The company ended the quarter with cash and cash equivalents of approximately $3.1 million, a decrease of around 22% sequentially. Long-term debt was about $68.4 million, down roughly 21% from the prior quarter [5] - Cash provided by operating activities was $24.7 million for the quarter [5] Outlook - L.B. Foster expects adjusted EBITDA in the range of $34.5-$36.5 million for 2024 and net sales between $530-$540 million [6] Stock Performance - L.B. Foster's shares have increased by 17.4% over the past year, contrasting with a 5.8% decline in the industry [7]

Financial Data and Key Metrics Changes - The company reported a gross margin of 23.8%, the highest level in over a decade, up 490 basis points from the previous year [8] - Net income for the quarter was $35.9 million, which included a $30 million favorable tax valuation reserve adjustment [9][18] - Adjusted EBITDA was $12.3 million, reflecting a 16.4% increase year-over-year despite lower sales [9][19] - Cash from operations totaled $24.7 million, an increase of $6.1 million compared to the same quarter last year [20] Business Line Data and Key Metrics Changes - Net sales decreased by 5.4%, primarily due to domestic rail commercial weakness, with organic sales down 8.5% [15] - Rail segment revenues were $79.5 million, down 8.5% year-over-year, driven by weaker commercial conditions [24] - Infrastructure Solutions segment revenue decreased by $0.5 million or 0.9%, with growth in Precast Concrete offsetting declines in other areas [26] Market Data and Key Metrics Changes - The trailing 12-month organic growth rate was 3%, with a greater sales mix coming from growth platforms [23] - Rail orders increased by $2.9 million, driven by demand in Rail Products and Global Friction Management [25] - Infrastructure orders were $43.3 million, down $7.1 million from the prior year, primarily due to softer demand in Steel Products [27] Company Strategy and Development Direction - The company is focused on transforming its profitability profile and enhancing cash generation [8] - Capital spending is expected to run at approximately 1.5% to 2% of sales over the long term, with elevated spending in 2024 for growth platforms [38] - The company plans to continue its stock buyback program while maintaining a balanced view of leverage and growth [38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of market conditions, particularly in the Rail segment, and highlighted strong demand in growth platforms [43][49] - The company anticipates a long-term infrastructure investment super cycle, which should support sustainable growth [49] - Management noted that while infrastructure markets are somewhat choppy, demand in growth platforms remains robust [44] Other Important Information - The company has made modest updates to its 2024 financial guidance, lowering sales expectations slightly but maintaining adjusted EBITDA outlook [12] - The effective tax rate is expected to return to approximately 28% starting in the fourth quarter due to the release of the federal tax valuation allowance [19] - The company is targeting a capital expenditure of $3.5 million to $4 million for a new facility in Central Florida, expected to begin production by the end of the year [61] Q&A Session Summary Question: What are the expected revenue targets for 2025? - Management indicated that revenue targets for 2025 are projected between $580 million and $620 million, driven by growth platforms and organic sales [56] Question: How should gross margins be viewed moving forward? - Management stated that while the current gross margin of 23.8% is higher than historical levels, they expect margins to remain between 22% and 23% in 2025 as part of their strategy to transform the company [59] Question: What is the timeline and CapEx for the new facility in Central Florida? - The facility is a brownfield installation with an expected first product by the end of the year, requiring a capital investment of $3.5 million to $4 million [61] Question: Will targeted bolt-on acquisitions focus on U.S. operations? - Management confirmed that approximately 95% of sales are in North America, and they plan to focus on U.S. operations for any bolt-on acquisitions [65]

Financial Performance - Net sales for the three months ended September 30, 2024 decreased by $7,879, or 5.4%, compared to the prior year quarter, driven by organic sales declines in the Rail and Infrastructure segments [112]. - Gross profit for the three months ended September 30, 2024 increased by $5,341, or 19.5%, with gross profit margins improving by 490 basis points to 23.8% [113]. - Selling and administrative expenses decreased by $132, or 0.5%, due to lower employment costs and bad debt expense, partially offset by higher legal and restructuring costs [114]. - Net income attributable to the Company for the three months ended September 30, 2024 increased by $35,390, or $3.22 per diluted share, driven by a favorable tax valuation allowance adjustment and gross profit improvement [117]. - Net income attributable to the Company for the nine months ended September 30, 2024 was $43,188, an increase of $41,294, or $3.74 per diluted share, over the prior year period [138]. Tax and Interest - The effective income tax rate for the three months ended September 30, 2024 was (483.4%), primarily due to a $30,045 income tax benefit from a change in valuation allowance against deferred tax assets [116]. - The Company's effective income tax rate for the nine months ended September 30, 2024 was (207.8%), compared to (5.9%) in the prior year period, primarily due to a significant income tax benefit [136]. - Net interest expense decreased by $84, with the outstanding debt balance at $68,544 as of September 30, 2024, down from $71,689 a year earlier [115]. Segment Performance - Rail segment net sales for the three months ended September 30, 2024 decreased by $7,368, or 8.5%, compared to the prior year quarter, primarily due to weaker domestic market conditions [118]. - Infrastructure segment net sales for the three months ended September 30, 2024 decreased by $511, or 0.9%, driven by a decline in the Steel Products business unit [122]. - Rail segment gross profit increased by $1,242, or 7.2%, with gross profit margins improving by 340 basis points to 23.2% [119]. - Infrastructure segment gross profit increased by $4,099, or 40.2%, with gross profit margins improving by 720 basis points to 24.6% [124]. - Segment operating income for the Rail segment increased by $1,067, with operating income margins improving by 170 basis points to 6.2% [120]. - Infrastructure segment operating income increased by $4,311 compared to the prior year quarter, reflecting higher gross profit and lower amortization expenses [125]. Orders and Backlog - New orders in the Rail segment for the current quarter were $52,675, an increase of $2,857, or 5.7%, compared to the prior year quarter [121]. - Infrastructure segment new orders decreased by $7,147, or 14.2%, driven entirely by the Steel Products business unit [126]. - New orders in the Rail segment were $253,412, an increase of $13,886, or 5.8%, compared to the prior year period [142]. - Infrastructure segment new orders decreased by $38,056, or 20.7%, primarily due to short-term constrained demand in the Steel Products business unit [146]. - Total backlog as of September 30, 2024, was $209,005, a decrease of $34,214 compared to the prior year quarter, driven by constrained demand in the Steel Products business unit [168]. Acquisitions and Divestitures - The Company sold the Chemtec business for $5,344, resulting in a $2,065 loss on sale, and the Ties business for $2,362, resulting in a $1,009 loss on sale [106][107]. - The Company acquired Cougar Mountain Precast, LLC for $1,644, expanding its Precast Concrete Products business unit within the Infrastructure segment [109]. - The Company announced the discontinuation of the Bridge Products grid deck product line due to weak market conditions, with sales of $921 and $283 for the three months ended September 30, 2024 and 2023, respectively [108]. Debt and Cash Management - The Company reported total debt of $68,544 as of September 30, 2024, an increase from $55,273 as of December 31, 2023 [152]. - The Company experienced an increase in outstanding debt of $12,162 for the nine months ended September 30, 2024, compared to a decrease of $20,262 in the prior year, primarily due to higher working capital needs [161]. - As of September 30, 2024, the Company had $3,135 in cash and cash equivalents and $59,707 available under its revolving credit facility, subject to covenant restrictions [164]. - The Company had $62,842 available funding capacity as of September 30, 2024, subject to covenant restrictions [153]. Restructuring and Operational Focus - The Company expects annual run-rate pre-tax savings of approximately $4,500 from its restructuring program, with $2,000 to be realized in 2024 [148]. - Capital expenditures for the nine months ended September 30, 2024, were $7,834, compared to $2,784 in the same period of 2023, indicating a focus on operational improvements and organic growth initiatives [160]. Internal Control and Governance - A material weakness in internal control over financial reporting was identified, impacting the effectiveness of the Company's disclosure controls and procedures as of September 30, 2024 [181]. - The company is committed to continuous improvement of its internal control over financial reporting, addressing identified material weaknesses [184]. - There were no changes to internal control over financial reporting that materially affected the company during the three and nine months ended September 30, 2024 [185]. - Management acknowledges that controls and procedures can only provide reasonable assurance of achieving desired control objectives due to resource constraints [186].

Financial Performance - Third quarter net sales were $137.5 million, down $7.9 million or 5.4% year over year[6] - Net income for the third quarter was $35.9 million, an increase of $35.4 million year over year, primarily due to a $30.0 million tax valuation allowance adjustment[8] - Adjusted EBITDA for the third quarter was $12.3 million, up 16.4% from the prior year[10] - Gross profit for Q3 2024 was $18.5 million, an increase of $1.2 million, with gross profit margins rising 340 basis points to 23.2%[14] - Segment operating income for Q3 2024 was $4.9 million, a $1.1 million increase compared to the prior year quarter, driven by improved gross profit[15] - Net sales for Q3 2024 were $58.0 million, a decrease of $0.5 million or 0.9% from Q3 2023, with an adjusted organic sales decline of 1.9%[17] - For the first nine months of 2024, net sales were $402.6 million, down $6.3 million or 1.5% from the prior year period[22] - Gross profit for the first nine months of 2024 was $89.4 million, a $6.1 million increase year-over-year, with gross profit margins increasing by 180 basis points to 22.2%[22] - Total net sales for the three months ended September 30, 2024, were $145,345, an increase of 5.4% compared to $137,466 for the same period in 2023[39] - The company reported a total adjusted sales change of $(9,856) million, representing a 6.7% decline from 2023 to 2024[48] Cash Flow and Operations - Cash provided by operations totaled $24.7 million, an increase of $6.1 million compared to the prior year quarter[12] - Cash used by operating activities in the nine months ended September 30, 2024 totaled $1.7 million, an increased use of $17.0 million compared to the prior year[29] - The company expects to generate approximately $30 million to $35 million in free cash flow in the second half of the year[3] - Cash and cash equivalents increased to $3,135 as of September 30, 2024, compared to $2,560 at the end of December 31, 2023[41] - Total current assets rose to $173,454 as of September 30, 2024, up from $167,355 at the end of December 31, 2023[41] Debt and Leverage - The Gross Leverage Ratio improved to 1.9x, a decrease of 0.8x during the quarter[12] - Long-term debt increased to $68,377 as of September 30, 2024, compared to $55,171 at the end of December 31, 2023[41] - The company reported a net debt of $65,242, calculated as total debt of $71,377 minus cash and cash equivalents[44] - Total debt as of September 30, 2024, was $68,544 million, down from $71,689 million a year earlier[48] - Net debt decreased to $65,409 million as of September 30, 2024, compared to $68,720 million in the same period of 2023[48] Orders and Backlog - New orders for the third quarter totaled $96.0 million, a decrease of $4.3 million or 4.3% from the prior year[11] - Backlog decreased to $209.0 million, down $34.2 million or 14.1% year over year[11] - Orders increased by $2.9 million year-over-year, with a backlog of $88.7 million, down $5.0 million from the prior year quarter[16] - New orders for Q3 2024 totaled $43.3 million, down $7.1 million from the prior year quarter, reflecting a decline in the Protective Coatings business[20] - New orders for the first nine months of 2024 totaled $399.4 million, a decrease of $24.2 million or 5.7% from the prior year period[28] Strategic Focus and Market Outlook - The company anticipates continued focus on strategic growth initiatives and market expansion in the upcoming quarters[40] - Capital spending as a percentage of sales is projected to be between 2.0% and 2.5% for 2024[4] - The company made adjustments to exclude non-routine costs, which are considered useful for evaluating ongoing operations[42] Profitability Metrics - Gross margin improved to 23.8%, the highest level in over ten years, reflecting a 490 basis point increase from the previous year[7] - Gross profit for Q3 2024 was $14.3 million, a $4.1 million increase, with gross profit margins increasing 720 basis points to 24.6%[18] - The gross profit margin for 2024 is reported at 23.8%, an increase from 18.9% in 2023[49] - The adjusted gross profit margin for 2023 was 21.2%, while the margin for 2024 is projected to be 22.3%[50] Income and Earnings - Operating income for the three months ended September 30, 2024, increased to $1,617 from $7,323 in the same period of 2023[39] - Net income attributable to L.B. Foster Company for the three months ended September 30, 2024, was $515, a significant decrease from $35,905 in the prior year[39] - The net income for the three months ended September 30, 2024, was $35,898 million, a significant increase from $447 million in the same period of 2023[47] - Organic sales growth for the three months ended September 30, 2024, showed a decline of 5.9% compared to the same period in 2023, with net sales reported at $137,466 million[48]

Core Viewpoint - L.B. Foster Company is set to release its third quarter results on November 7, 2024, and will host a conference call to discuss the results and market outlook [1]. Group 1 - The earnings release will occur pre-market opening on November 7, 2024 [1]. - A conference call is scheduled for 11:00 A.M. Eastern Time on the same day to discuss operating results and business developments [1]. - A presentation will be available on the Company's Investor Relations page immediately after the earnings release [1]. Group 2 - The conference call will be webcasted live and will be listen-only [2]. - A replay of the webcast will be available until November 14, 2024, on the Investor Relations page [2]. Group 3 - Interested participants can register for the question-and-answer session to receive dial-in numbers and a unique PIN [3]. - It is recommended to join the call 10 minutes prior to the start time [3]. Group 4 - L.B. Foster Company, founded in 1902, is a global technology solutions provider focused on engineered products and services for infrastructure [4]. - The Company operates in North America, South America, Europe, and Asia, addressing safety, reliability, and performance needs [4].

PITTSBURGH, Sept. 04, 2024 (GLOBE NEWSWIRE) -- L.B. Foster Company (NASDAQ: FSTR, the "Company"), announced today that John Kasel, President and Chief Executive Officer, and Bill Thalman, Executive Vice President and Chief Financial Officer, will present at the Singular Research Autumn Equinox 2024 Webinar on September 11, 2024, beginning at 9:00 AM EST. Presentation materials for the conference will be posted on the Company's Investor Relations website under "Presentations" the morning of the conference. A ...

L.B. Foster Company (NASDAQ:FSTR) Q2 2024 Earnings Conference Call August 6, 2024 11:00 AM ET Company Participants Stephanie Schmidt – IR John Kasel – President and CEO William Thalman – EVP and CFO Conference Call Participants Christopher Sakai - Singular Research Justin Bergner - Gabelli Funds John Bair - Ascend Wealth Advisors Operator Hello, and thank you for standing by. Welcome to L.B. Foster's Second Quarter 2024 Earnings Conference Call. At this time all participants are in a listen-only mode. After ...

L.B. Foster Company Earnings Presentation Nasdaq - FSTR August 6, 2024 LBFoster Safe Harbor Disclaimer 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 include any statement that does not directly relate to any histo ...