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Core Viewpoint - L.B. Foster Company will release its first quarter results on May 6, 2025, and will host a conference call to discuss the results and market outlook [1]. Group 1: Earnings Release and Conference Call - The earnings release will occur pre-market on May 6, 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 for the rail and infrastructure markets [4]. - The Company focuses on innovative engineering and product development to meet safety, reliability, and performance needs [4]. - L.B. Foster has locations in North America, South America, Europe, and Asia [4].

Company Announcement - L.B. Foster Company will present virtually at the Sidoti Small Cap Virtual Conference on March 20, 2025, starting at 2:30 PM EST [1] - Presentation materials will be available on the Company's Investor Relations website on the morning of the conference [1] Webcast Information - A video webcast and replay will be available online, with a registration link provided on the L.B. Foster website on the day of the event [2] - The video replay will be accessible for 90 days following the event [2] Company Overview - L.B. Foster Company, founded in 1902, is a global technology solutions provider specializing in engineered, manufactured products and services for infrastructure [3] - The Company focuses on innovative engineering and product development solutions to meet safety, reliability, and performance needs [3] - L.B. Foster maintains locations across North America, South America, Europe, and Asia [3]

Financial Performance - For the year ended December 31, 2024, L.B. Foster Company recorded total net sales of $530.765 million, a decrease of 2.0% from $543.744 million in 2023[225]. - The gross profit for 2024 was $118.062 million, representing an increase of 5.0% compared to $112.044 million in 2023[225]. - Net income attributable to L.B. Foster Company for 2024 was $42.946 million, significantly up from $1.464 million in 2023, marking an increase of 2,831.5%[225]. - Basic earnings per common share rose to $4.01 in 2024, compared to $0.14 in 2023, reflecting a substantial increase[225]. - Total assets increased to $334.550 million in 2024, up from $312.401 million in 2023, indicating a growth of 7.1%[222]. - Current liabilities decreased to $88.296 million in 2024 from $94.501 million in 2023, a reduction of 6.6%[222]. - The company reported a total comprehensive income of $40.403 million for 2024, compared to $3.350 million in 2023, an increase of 1,103.5%[228]. - Long-term debt decreased to $46.773 million in 2024 from $55.171 million in 2023, a decline of 15.5%[222]. - Net income for the year ended December 31, 2024, was $42,843,000, a significant increase from $1,299,000 in 2023, representing a growth of approximately 3,295%[232]. - The company reported a foreign currency transaction gain of $154 million for the year ended December 31, 2024, compared to a loss of $77 million in 2023[263]. Sales and Revenue - Rail segment accounted for 62% of total net sales in 2024, up from 57% in 2023, while Infrastructure Solutions decreased to 38% from 43%[14]. - The Rail segment generated net sales of $326,869 million in 2024, compared to $312,160 million in 2023, reflecting a growth of 4.5%[280][283]. - Infrastructure Solutions segment net sales decreased to $203,896 million in 2024 from $231,584 million in 2023, a decline of 11.9%[280][283]. - The company recognized $145,254 million in total over time sales for 2024, accounting for 27.4% of total net sales, consistent with 2023[292]. - The Bridge Exit product line had sales of $3,700 million in 2024 and $6,146 million in 2023, with the Company incurring $1,403 million in exit costs during 2023[276]. Employee and Workforce - The Company employs a global sales force of approximately 79 people, with 16 located outside the US[30]. - The Company had a total of 1,057 employees as of December 31, 2024, with 819 located in the US, 42 in Canada, 189 in Europe, and 7 in other locations[47]. - The Company has a collective bargaining agreement covering 8 employees, which is currently being negotiated and is set to expire in March 2025[48]. - The Company focuses on attracting and retaining employees that embody its values summarized in the SPIRIT model, which includes Safety, People, Integrity, Respect, Innovation, and Teamwork[37]. - The Company has a defined benefit plan or defined contribution plan covering all hourly and salaried employees[48]. Sustainability and Environmental Initiatives - The Company emphasizes a culture of environmental, health, safety, and sustainability excellence, aiming to exceed applicable regulations and improve its EHSS performance[41]. - The Company issued its inaugural sustainability report in 2024, aligning sustainability with operations and addressing its environmental footprint[40]. - The Company has nine locations in North America and Europe with Environmental Management Systems independently assessed for compliance with ISO 14001:2015 and ISO 45001:2018[41]. - The Company aims to create advanced solutions around sustainability while maximizing opportunities for environmental and social benefits[41]. - The Company is committed to good corporate citizenship and has adopted safety and environmental policies to support long-term sustainability excellence[39]. Investments and Acquisitions - The company acquired the operating assets of Cougar Mountain Precast, LLC for $1,644,000 on November 17, 2023, enhancing its Infrastructure segment[240]. - The Company completed the sale of its Concrete Ties division in June 2023 and the Chemtec business in March 2023[19][29]. - The Company sold substantially all operating assets of the Chemtec business for cash proceeds of $5,344 million, resulting in a pre-tax loss of $2,065 million[275]. - The Company sold substantially all operating assets of the prestressed concrete railroad tie business for cash proceeds of $2,362 million, generating a pre-tax loss of $1,009 million[272]. Financial Position and Assets - The company recorded $52.7 million in revenue recognized over time using the input method for long-term contracts in 2024[216]. - Retained earnings increased to $167.579 million in 2024, up from $124.633 million in 2023, reflecting a growth of 34.4%[222]. - Total cash and cash equivalents at the end of the period decreased to $2,454,000 in 2024 from $2,560,000 in 2023, a decline of approximately 4%[232]. - The company recorded a net cash used in investing activities of $(6,312,000) in 2024, compared to a net cash provided of $2,486,000 in 2023[232]. - The company’s segment assets increased to $334,550 million in 2024 from $312,401 million in 2023, a growth of 7.1%[287]. Debt and Liabilities - The company repaid $230,640,000 in debt during 2024, compared to $208,668,000 in 2023, indicating an increase in debt repayment of about 10%[232]. - Long-term debt decreased to $46,773 million in 2024 from $55,171 million in 2023, a decline of 15.5%[222]. - The allowance for credit losses increased from $809 million as of December 31, 2023, to $1,127 million as of December 31, 2024, marking a rise of 39.3%[306]. - Accounts receivable as of December 31, 2024, totaled $66,105 million, up from $54,293 million in 2023, indicating an increase of 21.8%[304]. - Inventory decreased from $73,111 million as of December 31, 2023, to $70,506 million as of December 31, 2024, a decline of 3.6%[307]. Stock and Compensation - Stock-based compensation expenses were $3,834,000 in 2024, down from $4,179,000 in 2023, a decrease of approximately 8%[232]. - The weighted average fair value of restricted stock grants awarded was $27.45 per share for 2024, up from $13.00 per share in 2023[346]. - The total amount of unrecognized tax benefits was $265 as of December 31, 2024, with accrued interest and penalties related to these benefits amounting to $294[338]. - The Company issued 22,458 restricted shares to non-employee directors in 2024, with a compensation expense of approximately $589[345]. - The performance stock units are tied to a three-year program, with adjustments based on the company's expected performance target attainment[348].

Core Insights - L.B. Foster Company reported a narrower loss of 2 cents per share for Q4 2024, compared to a loss of 4 cents per share a year ago, missing the Zacks Consensus Estimate of earnings of 29 cents per share [1] - The company recorded revenues of $128.2 million for the quarter, down approximately 5% year over year, and also missed the Zacks Consensus Estimate of $133.2 million due to lower volumes in the Steel Products business unit [2] - New orders for the quarter were approximately $107.2 million, reflecting a 2% year-over-year increase, driven by strong demand in the protective pipe coatings business [3] Segment Performance - Sales from the Rail, Technologies, and Services segment increased by 14% year over year to $79.2 million, attributed to higher sales volumes in the Rail Products business unit [4] - The Infrastructure Solutions segment saw sales decline to $49 million, down roughly 25% year over year, primarily due to lower sales in steel products amid soft end-market conditions [4] Full-Year Results - For the full year 2024, earnings were reported at $3.89 per share, a significant increase from 13 cents a year ago, while sales fell around 2% year over year to approximately $530.8 million, mainly due to divestitures and product line exits [5] Financial Position - At the end of 2024, L.B. Foster had cash and cash equivalents of around $2.5 million, a decrease of about 4% year over year, and long-term debt was approximately $46.8 million, down roughly 15% from the previous year [6] - Cash flow from operations for the fourth quarter was reported at $24.3 million [6] Outlook - The company anticipates adjusted EBITDA in the range of $42-$48 million for 2025, with net sales projected between $540-$580 million [7] - Free cash flow is expected to be between $20 million and $30 million for the year, with capital expenditures estimated to account for roughly 2% of sales [7] - A new $40 million share repurchase program has been authorized, replacing the earlier $15 million buyback authorization [7] Stock Performance - L.B. Foster's shares have declined by 16% year to date, contrasting with a 12.2% rise in the Zacks Steel Producers industry [8] Zacks Rank - L.B. Foster currently holds a Zacks Rank 3 (Hold), while better-ranked stocks in the Basic Materials sector include Denison Mines Corp., Gold Royalty Corp., and Orla Mining Ltd., each with a Zacks Rank 2 (Buy) [9]

Financial Data and Key Metrics Changes - The company reported a gross margin of 22.3%, an increase of 100 basis points year-over-year despite a 5% decline in sales, indicating improved profitability [10] - Adjusted EBITDA for Q4 was $7.2 million, up $1.1 million or 18.7% compared to the previous year, primarily due to lower SG&A expenses [11] - Operating cash flow totaled $24.3 million in Q4, contributing to a reduction in net debt by $20.9 million to $44.5 million at quarter end [11][32] - The gross leverage ratio improved to 1.2 times, down from 1.9 times at the start of the quarter and 1.7 times from the previous year [12] Business Line Data and Key Metrics Changes - Net sales for the fourth quarter were $128.2 million, a decline of 5% due to a 3.8% organic sales decline in the infrastructure segment, while rail organic sales increased by 14.2% [16] - Rail segment revenues reached $79.2 million, up 14.2% year-over-year, driven by higher volumes in rail products and friction management [23] - Infrastructure solutions segment revenue decreased by 25.2% to $16.6 million, primarily due to soft market conditions in the steel products business [26] Market Data and Key Metrics Changes - The overall backlog decreased by approximately 13% year-over-year, with rail segment backlog down $22 million, largely due to strategic actions and lower market steel prices [41] - Protective coatings orders increased significantly to $8.6 million in Q4, up from $1.4 million the previous year, indicating a recovery in demand [52] Company Strategy and Development Direction - The company is focused on executing its strategic playbook, which includes expanding more profitable work programs and scaling back less profitable segments [46] - A new three-year $40 million stock repurchase program was authorized, reflecting confidence in cash generation and valuation [36][55] - The company plans to maintain a capital-light business model while investing approximately 2% of sales in CapEx to support organic growth initiatives [37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in 2025, despite a softer start expected due to lower backlog levels and a volatile macro environment [48] - The company is monitoring government funding programs for rail infrastructure investments, which are expected to support long-term growth [49] - Management highlighted the importance of safety and operational efficiency, noting that a strong safety record contributes to overall business performance [59] Other Important Information - The company finalized the Union Pacific settlement funding in 2024, which is expected to improve cash generation by $8 million annually going forward [14] - The company has made significant progress in reducing SG&A expenses, which decreased by $1.2 million from the prior year [31] Q&A Session Summary Question: Can you discuss the 2025 guidance ranges for sales and EBITDA? - Management indicated that the guidance reflects a choppy market environment but expressed confidence in technology innovation driving sales and margins [64][66] Question: What factors could drive increased market adoption of new rail technologies? - Management noted that their products provide early detection warnings, enhancing safety and operational efficiency, which is increasingly valued by customers [70][72] Question: How will the new steel tariffs affect backlog? - Management stated that the backlog remains intact and that previous experiences with tariffs have been manageable, with strong relationships with domestic steel mills [90][92] Question: What is the rationale behind the $40 million share buyback program? - The decision was based on available cash from the Union Pacific settlement and anticipated operating cash generation [99] Question: How is the company factoring potential disruptions in national and state parks into its guidance? - Management remains optimistic about the precast concrete business, citing strong backlog and ongoing projects [110] Question: What parts of the business are expected to recover in the second half of the year? - Management expects recovery in protective coatings and infrastructure projects, particularly in Tennessee and Florida [115] Question: How will tariffs against Canada and Mexico impact the rail business? - Management believes that demand for their products will continue, and they have flexibility in pricing to manage potential cost increases [118][122]

Group 1 - L.B. Foster reported a quarterly loss of $0.02 per share, significantly missing the Zacks Consensus Estimate of $0.29, representing an earnings surprise of -106.90% [1] - The company posted revenues of $128.18 million for the quarter ended December 2024, which was 3.78% below the Zacks Consensus Estimate and down from $134.88 million a year ago [2] - L.B. Foster shares have declined approximately 4.2% since the beginning of the year, while the S&P 500 has decreased by -0.5% [3] Group 2 - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $131.81 million, and for the current fiscal year, it is $1.70 on revenues of $574.31 million [7] - The Steel - Producers industry, to which L.B. Foster belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Financial Performance - L.B. Foster Company reported a 14.2% increase in rail segment sales, reaching $79.2 million in Q4 2024, with gross margins improving by 300 basis points to 22.2%[2][10] - Infrastructure segment sales decreased by 25.2% to $49.0 million in Q4 2024, with gross margins declining by 90 basis points to 22.6%[2][11] - The company achieved adjusted EBITDA of $7.2 million in Q4 2024, an increase of 18.7% compared to the prior year[2][4] - Free cash flow for the full year 2024 was $22.6 million, with total debt declining by $21.6 million to $46.9 million[2][4] - Net sales for the year ended December 31, 2024, were $530.8 million, a decrease of $13.0 million, or 2.4%, from the prior year[18] - Gross profit for the year ended December 31, 2024, was $118.1 million, an increase of $6.0 million, or 5.4%, with gross profit margins expanding by 160 basis points to 22.2%[18] - Operating income for the year ended December 31, 2024, was $20.5 million, an increase of $11.4 million over the prior year[18] - Net income attributable to the Company for the year ended December 31, 2024, was $42.9 million, or $3.89 per diluted share, favorable by $41.5 million over the prior year[18] - Adjusted EBITDA for the year ended December 31, 2024, was $33.6 million, a $1.8 million increase, or 5.7%, over the prior year[18] - Total net sales for Q4 2024 were $128.183 million, a decrease of 5.0% compared to $134.877 million in Q4 2023[36] - Gross profit for the fourth quarter of 2024 was $11.1 million, a decrease of $4.3 million, or 28.1%, from the prior year quarter[14] - Operating income for the year ended December 31, 2024, was $20.513 million, significantly higher than $9.107 million in 2023[28] - Adjusted EBITDA for Q4 2024 was $7.238 million, up from $6.099 million in Q4 2023, reflecting a growth of 18.7%[36] Orders and Backlog - The backlog as of Q4 2024 was $185.9 million, a decrease of 13.0% from the prior year, primarily due to lower demand in rail products[2][9] - New orders totaled $107.2 million in Q4 2024, reflecting a 1.6% increase year-over-year, driven by the Infrastructure Solutions segment[2][9] - New orders for the year ended December 31, 2024, totaled $506.5 million, a decrease of $22.5 million, or 4.3%, from the prior year[18] - Backlog as of December 31, 2024, was $185.9 million, a decrease of $27.9 million from the prior year[18] - New orders for Rail, Technologies, and Services increased to $308.394 million in 2024, a rise of 2.9% from $299.584 million in 2023[37] Expenses and Debt - Selling and administrative expenses decreased by 10.4% to $24.4 million in Q4 2024, contributing to improved profitability[2][6] - Selling and administrative expenses for the year ended December 31, 2024, were $96.4 million, a decrease of $1.2 million, or 1.3%, from the prior year[18] - The gross leverage ratio improved to 1.2x as of December 31, 2024, down from 1.7x a year earlier[2][7] - The company reported a net debt of $44.486 million as of December 31, 2024, down from $65.409 million in 2023[36] - Total stockholders' equity increased to $179.014 million in 2024, compared to $142.835 million in 2023[30] Future Outlook - L.B. Foster Company authorized a new 3-year $40 million stock repurchase program, replacing the previous $15 million program[2][5] - The company expects 2025 net sales to range from $540 million to $580 million, with adjusted EBITDA projected between $42 million and $48 million[2][3] Organic Sales - Organic sales declined by 3.8% in Q4 2024, with a reported decrease of $5.109 million compared to the previous year[36]

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].