PITTSBURGH, March 07, 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 virtually at the Sidoti Small Cap Virtual Conference on March 14, 2024 beginning at 12:15 PM EST. Presentation materials for the conference will be posted on the Company’s Investor Relations website under “Presentations” the morning of the conference. A vid ...

PART I [Business Overview](index=5&type=section&id=Item%201.%20Business) L.B. Foster Company provides global infrastructure technology solutions, restructuring into Rail, Technologies, and Services and Infrastructure Solutions segments in 2023 - L.B. Foster Company is a global technology solutions provider of engineered, manufactured products and services that builds and supports infrastructure, with operations in North America, South America, Europe, and Asia[12](index=12&type=chunk) - The company restructured its reporting segments in Q4 2023 from three to two: (1) Rail, Technologies, and Services (Rail) and (2) Infrastructure Solutions. Historical data has been restated to conform to this new presentation[13](index=13&type=chunk)[14](index=14&type=chunk) Net Sales by Reporting Segment (2023 vs. 2022) | Segment | 2023 (%) | 2022 (%) | | :----------------------------- | :------- | :------- | | Rail, Technologies, and Services | 57 | 60 | | Infrastructure Solutions | 43 | 40 | | **Total** | **100** | **100** | - International sales decreased from **24% of total sales in 2022 to 15% in 2023**[31](index=31&type=chunk) - The company had **1,065 employees** as of December 31, 2023, with 820 in the US, 43 in Canada, 196 in Europe, and 6 elsewhere. **11 hourly production workers are represented by unions**[47](index=47&type=chunk)[48](index=48&type=chunk) [Summary Description of Businesses](index=5&type=section&id=Summary%20Description%20of%20Businesses) [Business Segments](index=5&type=section&id=Business%20Segments) [Rail, Technologies, and Services](index=5&type=section&id=Rail,%20Technologies,%20and%20Services) The Rail segment provides manufacturing, distribution, and services for freight and passenger railroads and industrial companies globally, including track components, friction management, and technology solutions - The Rail segment provides manufacturing, distribution, and services for freight and passenger railroads and industrial companies globally, including track components, friction management, and technology solutions[16](index=16&type=chunk) - Key business units within Rail include Rail Products (Rail Distribution, Allegheny Rail Products, Transit Products), Global Friction Management, and Technology Services and Solutions[16](index=16&type=chunk)[17](index=17&type=chunk) - The Concrete Ties business, previously part of Rail Products, was sold in June 2023[17](index=17&type=chunk)[20](index=20&type=chunk) - The Technology Services and Solutions unit acquired Skratch Enterprises Ltd. in June 2022, expanding its intelligent digital signage solutions[22](index=22&type=chunk) [Infrastructure Solutions](index=7&type=section&id=Infrastructure%20Solutions) The Infrastructure segment designs, manufactures, and deploys advanced technologies for the built environment, including precast concrete products, bridge products, and pipe protective coatings and threading - The Infrastructure segment designs, manufactures, and deploys advanced technologies for the built environment, including precast concrete products, bridge products, and pipe protective coatings and threading[23](index=23&type=chunk) - The Precast Concrete Products unit acquired VanHooseCo Precast, LLC in August 2022, expanding into commercial and residential infrastructure markets, and Cougar Mountain Precast, LLC in November 2023[24](index=24&type=chunk)[137](index=137&type=chunk) - The Steel Products unit discontinued its bridge grid deck product line in Q3 2023 due to weak market conditions and customer adoption of newer technologies[26](index=26&type=chunk)[136](index=136&type=chunk) - The Chemtec business (Precision Measurement Products and Systems) was sold in March 2023[30](index=30&type=chunk)[134](index=134&type=chunk) [International Operations](index=8&type=section&id=International%20Operations) [Marketing and Competition](index=8&type=section&id=Marketing%20and%20Competition) [Raw Materials and Supplies](index=8&type=section&id=Raw%20Materials%20and%20Supplies) [Backlog](index=8&type=section&id=Backlog) [Patents and Trademarks](index=8&type=section&id=Patents%20and%20Trademarks) [Environmental Disclosures](index=8&type=section&id=Environmental%20Disclosures) [Human Capital Management](index=9&type=section&id=Human%20Capital%20Management) [Code of Ethics](index=10&type=section&id=Code%20of%20Ethics) [Available Information](index=10&type=section&id=Available%20Information) [Executive Officers of the Registrant](index=10&type=section&id=Executive%20Officers%20of%20the%20Registrant) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces diverse risks from managing acquisitions, economic downturns, cost pressures, cybersecurity threats, competitive markets, and international operations - Risks include the inability to successfully manage acquisitions, divestitures, and strategic transactions, which could harm financial results and prospects[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Prolonged negative economic conditions, volatile energy prices, and unfavorable changes in global markets could adversely affect the business, including impacts on suppliers, customers, and government spending[68](index=68&type=chunk)[69](index=69&type=chunk) - Profitability is vulnerable to cost pressures, such as rising inflation, labor costs, and supply chain constraints, which adversely impacted the company in 2023 and 2022[70](index=70&type=chunk) - Cybersecurity risks, including data breaches and cyber-attacks, could disrupt business, lead to liability, and harm reputation, despite increased investments in cybersecurity safeguards[72](index=72&type=chunk) - The company's indebtedness could materially and adversely affect its business, financial condition, and results of operations by requiring a substantial portion of cash flows for debt service and limiting financial flexibility[87](index=87&type=chunk)[88](index=88&type=chunk) - International operations expose the company to risks such as changing economic and political conditions, currency fluctuations, and foreign laws related to tariffs, trade restrictions, and taxation[101](index=101&type=chunk)[102](index=102&type=chunk) [Business and Operational Risks](index=14&type=section&id=Business%20and%20Operational%20Risks) [Competitive Risks](index=17&type=section&id=Competitive%20Risks) [Financial Risks](index=19&type=section&id=Financial%20Risks) [Legal, Tax, and Regulatory Risks](index=21&type=section&id=Legal,%20Tax,%20and%20Regulatory%20Risks) [International Risks](index=23&type=section&id=International%20Risks) [Unresolved Staff Comments](index=24&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reported no unresolved staff comments from the SEC - There are no unresolved staff comments[106](index=106&type=chunk) [Cybersecurity](index=24&type=section&id=Item%201C.%20Cybersecurity) The company maintains a risk-based cybersecurity program with Board oversight, incident response teams, and insurance, having experienced no material cyber-attack impacts to date - The company's cybersecurity program is risk-based, incorporating industry best practices, third-party consultants, auditors, and insurers, with some business portions certified under Cyber Essentials and goals to comply with ISO 27001 company-wide[107](index=107&type=chunk) - Key program elements include cyber education, access management, data encryption, endpoint/network monitoring, sensitive data transmission detection, managed detection and response services, vulnerability management, and a dedicated internal cybersecurity team with an incident response plan[108](index=108&type=chunk) - The Board of Directors has overall oversight of cybersecurity risks, with the Audit Committee receiving regular reports from senior management. A Cyber Incident Response Team (CIRT) and Cyber Security Materiality Assessment Committee (CMAC) are responsible for ongoing risk management and incident assessment[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) - To date, cyber-attacks have not materially affected the company, which maintains insurance coverage for cybersecurity incidents[109](index=109&type=chunk) [Properties](index=27&type=section&id=Item%202.%20Properties) The company's corporate headquarters is in Pittsburgh, PA, operating numerous owned and leased facilities across North America and Europe, all in good condition - The company's corporate headquarters is in Pittsburgh, PA[115](index=115&type=chunk) Material Principal Properties by Business Segment | Location | Function | Business Segment | Lease Expiration | | :------------------- | :------------------------------------------- | :----------------- | :--------------- | | Bedford, PA | Bridge component fabricating plant | Infrastructure | Owned | | Birmingham, AL | Protective coatings facility | Infrastructure | 2027 | | Burnaby, BC, Canada | Friction management products plant | Rail | 2024 | | Columbia City, IN | Rail processing facility and yard storage | Rail | Owned | | Dublin, OH | Rail safety device manufacturing facility | Rail | 2026 | | Hillsboro, TX | Precast concrete facility | Infrastructure | Owned | | Lebanon, TN | Precast concrete facility | Infrastructure | 2028 | | London, United Kingdom | Technology services facility | Rail | 2024 | | Loudon, TN | Precast concrete facility | Infrastructure | Owned | | Magnolia, TX | Threading facility | Infrastructure | Owned | | Nampa, ID | Precast concrete facility | Infrastructure | 2029 | | Niles, OH | Rail fabrication, friction management products, and yard storage | Rail | Owned | | Nottingham, United Kingdom | Technology solutions manufacturing | Rail | Owned | | Pueblo, CO | Rail joint manufacturing facility | Rail | Owned | | Sheffield, United Kingdom | Track component and friction management products facility | Rail | 2030 | | Telford, United Kingdom | Technology solutions manufacturing | Rail | 2033 | | Waverly, WV | Precast concrete facility | Infrastructure | Owned | | Willis, TX | Protective coatings facility | Infrastructure | Owned | - The company's facilities are in good condition and suitable for its current and planned business operations[116](index=116&type=chunk) [Legal Proceedings](index=27&type=section&id=Item%203.%20Legal%20Proceedings) Information regarding the company's legal proceedings and other commitments and contingencies is incorporated by reference from Note 18 to the Consolidated Financial Statements - Information on legal proceedings and other commitments and contingencies is detailed in Note 18 to the Consolidated Financial Statements[117](index=117&type=chunk) [Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This item is not applicable to the Company[118](index=118&type=chunk) PART II [Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant's%20Common%20Equity,%20Related%20Stockholder%20Matters,%20and%20Issuer%20Purchases%20of%20Equity%20Securities) As of February 29, 2024, L.B. Foster had 315 common shareholders, with stock traded on NASDAQ (FSTR); no dividends were declared in 2023-2022, but a $15 million share repurchase program was authorized - As of February 29, 2024, the Company had **315 common shareholders of record**, and its common stock is traded on the NASDAQ Global Select Market under the symbol FSTR[121](index=121&type=chunk) - No quarterly dividends were declared in 2023 and 2022, but there is potential for ordinary or special dividends in future years, subject to credit facility covenants[122](index=122&type=chunk) Issuer Purchases of Equity Securities (Q4 2023) | Period | Total Shares Purchased (1) | Average Price Paid per Share | Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Approximate Dollar Value of Shares That May Yet Be Purchased Under Plans or Programs | | :----------------------------------- | :------------------------- | :--------------------------- | :----------------------------------------------------------------- | :--------------------------------------------------------------------------------- | | October 1, 2023 - October 31, 2023 | — | $ — | — | $ 14,122 | | November 1, 2023 - November 30, 2023 | — | — | 33,331 | 13,459 | | December 1, 2023 - December 31, 2023 | — | — | 37,534 | 12,690 | | **Total** | **—** | **$ —** | **70,865** | **$ 12,690** | - On March 3, 2023, the Board authorized the repurchase of up to **$15,000 (thousand)** of common shares through February 2026. In 2023, **134,208 shares** were repurchased for **$2,310 (thousand)**[124](index=124&type=chunk)[130](index=130&type=chunk)[163](index=163&type=chunk) [Stock Market Information](index=28&type=section&id=Stock%20Market%20Information) [Dividends](index=28&type=section&id=Dividends) [Issuer Purchases of Equity Securities](index=28&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) [Reserved](index=28&type=section&id=Item%206.%20Reserved) This item is omitted pursuant to amendments to Item 301 of Regulation S-K - Item 6 is omitted pursuant to amendments to Item 301 of Regulation S-K effective February 10, 2021[125](index=125&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) L.B. Foster Company achieved significant financial improvements in 2023, with net sales up 9.3% to $543.7 million, adjusted EBITDA up 31.4% to $31.8 million, and net debt reduced by $36.3 million Key Financial Highlights (2023 vs. 2022) | Metric | 2023 ($ thousands) | 2022 ($ thousands) | Change ($ thousands) | Change (%) | | :---------------------- | :----------------- | :----------------- | :------------------- | :--------- | | Net Sales | 543,744 | 497,497 | 46,247 | 9.3 | | Gross Profit | 112,810 | 89,611 | 23,199 | 25.9 | | Gross Profit Margin | 20.7% | 18.0% | 270 bps | 15.0 | | Operating Profit (Loss) | 10,138 | (7,206) | 17,344 | 240.7 | | Net Income (Loss) | 1,299 | (45,677) | 46,976 | 102.9 | | Diluted EPS | $0.13 | $(4.25) | $4.38 | 103.1 | | Adjusted EBITDA | 31,775 | 24,179 | 7,596 | 31.4 | | Net Debt | 52,713 | 88,997 | (36,284) | (40.8) | - Net sales increased by **9.3%** due to **11.7% organic sales growth** and **4.0% from acquisitions** (Skratch, VanHooseCo), partially offset by a **6.4% reduction from divestitures** (Track Components, Chemtec, Ties)[130](index=130&type=chunk)[139](index=139&type=chunk) - Net cash flow from operations in 2023 was **$37,376 (thousand)**, a significant improvement from a use of **$10,576 (thousand)** in 2022[130](index=130&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk) - The company reduced its net debt by **$36,284 (thousand)** to **$52,713 (thousand)** in 2023, primarily using divestiture proceeds and operating cash flows[130](index=130&type=chunk)[131](index=131&type=chunk)[143](index=143&type=chunk)[163](index=163&type=chunk) - Selling and administrative expenses increased by **17.8%** to **$97,358 (thousand)** in 2023, primarily due to portfolio changes, higher personnel expenses, UK restructuring costs, and a bad debt provision[138](index=138&type=chunk)[142](index=142&type=chunk) - The effective income tax rate for 2023 was **(37.6)%**, compared to **(407.7)%** in 2022, primarily due to the realization of domestic tax benefits and an increase in valuation allowance against deferred tax assets in the UK and other foreign jurisdictions[145](index=145&type=chunk)[318](index=318&type=chunk) [Our Business](index=29&type=section&id=Our%20Business) [2023 Developments](index=29&type=section&id=2023%20Developments) [Acquisitions, Divestitures and Product Line Exit](index=30&type=section&id=Acquisitions,%20Divestitures%20and%20Product%20Line%20Exit) The company strategically acquired Skratch, VanHooseCo, and Cougar Mountain Precast, while divesting Chemtec, Ties, and Track Components, and discontinuing the bridge grid deck product line in 2023 - Acquired Skratch Enterprises Ltd. (June 2022) for **$7,402 (thousand)** and VanHooseCo Precast, LLC (August 2022) for **$52,146 (thousand)**, contributing **$4,624 (thousand)** and **$33,742 (thousand)** in net sales respectively for 2023[132](index=132&type=chunk) - Divested Track Components division (August 2022) for **$7,795 (thousand)**, resulting in a **$467 (thousand) loss on sale**[133](index=133&type=chunk) - Sold Chemtec business (March 2023) for **$5,344 (thousand)**, generating a **$2,065 (thousand) loss on sale**[134](index=134&type=chunk) - Sold Ties business (June 2023) for **$2,362 (thousand)**, resulting in a **$1,009 (thousand) loss on sale**[135](index=135&type=chunk) - Discontinued Bridge Products grid deck product line (August 2023) due to weak market conditions, incurring **$1,403 (thousand) in exit costs** and a **$3,051 (thousand) reduction in gross profit**[136](index=136&type=chunk) - Acquired Cougar Mountain Precast, LLC (November 2023) for **$1,644 (thousand)**[137](index=137&type=chunk) [Full Year Results Comparison](index=32&type=section&id=Full%20Year%20Results%20Comparison) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) As of December 31, 2023, the company had $74.7 million in available funding capacity, with net cash from operations significantly increasing to $37.4 million and total debt reduced to $55.3 million - As of December 31, 2023, the company had **$2,560 (thousand)** in cash and cash equivalents and **$72,133 (thousand)** available under its revolving credit facility, totaling **$74,693 (thousand)** in available funding capacity[156](index=156&type=chunk)[157](index=157&type=chunk) - Net cash provided by operating activities was **$37,376 (thousand)** in 2023, a significant increase from a use of **$10,576 (thousand)** in 2022[159](index=159&type=chunk)[160](index=160&type=chunk) - Net cash provided by investing activities was **$2,066 (thousand)** in 2023, compared to a use of **$56,418 (thousand)** in 2022, driven by lower capital expenditures and proceeds from divestitures[159](index=159&type=chunk)[162](index=162&type=chunk) - Net cash used in financing activities was **$39,296 (thousand)** in 2023, primarily due to debt reduction and share repurchases, contrasting with **$60,240 (thousand)** provided in 2022 for acquisitions[159](index=159&type=chunk)[163](index=163&type=chunk) - Total debt, including finance leases, decreased from **$91,879 (thousand)** in 2022 to **$55,273 (thousand)** in 2023[156](index=156&type=chunk)[304](index=304&type=chunk) - The Credit Agreement, amended in August 2022, extends maturity to August 2026 and includes financial covenants (Maximum Gross Leverage Ratio, Minimum Consolidated Fixed Charge Coverage Ratio) with which the company was in compliance as of December 31, 2023[168](index=168&type=chunk)[308](index=308&type=chunk)[309](index=309&type=chunk)[311](index=311&type=chunk) [Backlog](index=38&type=section&id=Backlog) Total backlog decreased by $58.5 million compared to the prior year, primarily due to divested businesses, discontinued product lines, and timing of large orders Backlog by Business Segment (2023 vs. 2022) | Segment | December 31, 2023 ($ thousands) | December 31, 2022 ($ thousands) | | :----------------------------- | :------------------------------ | :------------------------------ | | Rail, Technologies, and Services | 84,418 | 105,241 | | Infrastructure Solutions | 129,362 | 167,010 | | **Total Backlog** | **213,780** | **272,251** | - Total backlog decreased by **$58,471 (thousand)** compared to the prior year, with **$31,270 (thousand)** attributed to divested businesses and discontinued product lines, and the remaining decline due to timing of large orders in Rail Distribution[172](index=172&type=chunk) [Critical Accounting Estimates](index=40&type=section&id=Critical%20Accounting%20Estimates) Critical accounting estimates involve income taxes, revenue recognition for long-term contracts, goodwill impairment, and intangible/long-lived asset impairment, all requiring significant management judgment - Critical accounting estimates include income taxes (deferred tax assets, valuation allowances, uncertain tax positions), revenue recognition (long-term contract estimates, variable consideration), goodwill impairment, and intangible/long-lived asset impairment[174](index=174&type=chunk)[176](index=176&type=chunk)[180](index=180&type=chunk)[181](index=181&type=chunk)[185](index=185&type=chunk) - Management's judgments and assumptions in these areas can significantly impact reported financial results[174](index=174&type=chunk)[176](index=176&type=chunk)[182](index=182&type=chunk)[185](index=185&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like organic sales growth, EBITDA, adjusted EBITDA, and net debt to provide supplemental insight into business trends and performance - The company uses non-GAAP financial measures such as organic sales growth, EBITDA, adjusted EBITDA, and net debt to provide supplemental insight into business trends and performance, as these are used by management for operational and strategic decisions[187](index=187&type=chunk)[188](index=188&type=chunk)[189](index=189&type=chunk)[190](index=190&type=chunk) - Adjustments to EBITDA in 2023 included loss on divestitures, bridge grid deck exit impact, and bad debt provision. In 2022, adjustments included acquisition/divestiture costs, inventory step-up amortization, insurance proceeds, Crossrail settlement, and impairment charges[189](index=189&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=42&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable to L.B. Foster Company as it is a smaller reporting company - This item is not applicable to a smaller reporting company[192](index=192&type=chunk) [Financial Statements and Supplementary Data](index=43&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for L.B. Foster Company, including balance sheets, statements of operations, comprehensive income (loss), cash flows, and stockholders' equity for 2023 and 2022, with an unqualified opinion from Ernst & Young LLP - Ernst & Young LLP provided an unqualified opinion on the consolidated financial statements for the periods ended December 31, 2023 and 2022, and on the effectiveness of internal control over financial reporting as of December 31, 2023[195](index=195&type=chunk)[196](index=196&type=chunk)[395](index=395&type=chunk)[396](index=396&type=chunk) - Critical audit matters included revenue recognition for long-term contracts due to significant management judgment in cost and revenue estimates, and the valuation of goodwill for the Rail Technologies and Precast Concrete Products Reporting Units, which is sensitive to significant assumptions[199](index=199&type=chunk)[200](index=200&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) Consolidated Balance Sheet Summary (2023 vs. 2022) | Item | December 31, 2023 ($ thousands) | December 31, 2022 ($ thousands) | | :---------------------------- | :------------------------------ | :------------------------------ | | Total Current Assets | 167,990 | 205,732 | | Total Assets | 313,206 | 365,310 | | Total Current Liabilities | 95,306 | 103,111 | | Long-Term Debt | 55,171 | 91,752 | | Total Stockholders' Equity | 142,835 | 137,598 | Consolidated Statements of Operations Summary (2023 vs. 2022) | Item | Year Ended December 31, 2023 ($ thousands) | Year Ended December 31, 2022 ($ thousands) | | :---------------------------- | :----------------------------------------- | :----------------------------------------- | | Total Net Sales | 543,744 | 497,497 | | Gross Profit | 112,810 | 89,611 | | Operating Income (Loss) | 10,138 | (7,206) | | Net Income (Loss) | 1,299 | (45,677) | | Diluted Earnings (Loss) per Share | $0.13 | $(4.25) | Consolidated Statements of Cash Flows Summary (2023 vs. 2022) | Item | Year Ended December 31, 2023 ($ thousands) | Year Ended December 31, 2022 ($ thousands) | | :-------------------------------------- | :----------------------------------------- | :----------------------------------------- | | Net cash provided by (used in) operating activities | 37,376 | (10,576) | | Net cash provided by (used in) investing activities | 2,066 | (56,418) | | Net cash (used in) provided by financing activities | (39,296) | 60,240 | | Net decrease in cash and cash equivalents | (322) | (7,490) | [Report of Independent Registered Public Accounting Firm](index=43&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) [Consolidated Balance Sheets](index=45&type=section&id=Consolidated%20Balance%20Sheets) [Consolidated Statements of Operations](index=47&type=section&id=Consolidated%20Statements%20of%20Operations) [Consolidated Statements of Comprehensive Income (Loss)](index=48&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) [Consolidated Statements of Cash Flows](index=49&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) [Consolidated Statements of Stockholders' Equity](index=51&type=section&id=Consolidated%20Statements%20of%20Stockholders'%20Equity) [Notes to Consolidated Financial Statements](index=53&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=92&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reported no changes in or disagreements with accountants on accounting and financial disclosure - There were no changes in and disagreements with accountants on accounting and financial disclosure[387](index=387&type=chunk) [Controls and Procedures](index=92&type=section&id=Item%209A.%20Controls%20and%20Procedures) L.B. Foster Company's management, including the CEO and CFO, concluded that the company's disclosure controls and procedures and internal control over financial reporting were effective as of December 31, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of December 31, 2023[388](index=388&type=chunk) - Management assessed and concluded that the company maintained effective internal control over financial reporting as of December 31, 2023, based on the COSO framework, including the integration of VanHooseCo and Skratch acquisitions[389](index=389&type=chunk)[390](index=390&type=chunk) - Ernst & Young LLP issued an unqualified attestation report on the company's internal control over financial reporting[392](index=392&type=chunk)[395](index=395&type=chunk) [Evaluation of Disclosure Controls and Procedures](index=92&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) [Managements' Report on Internal Control Over Financial Reporting](index=92&type=section&id=Managements'%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) [Report of Independent Registered Public Accounting Firm](index=94&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) [Other Information](index=95&type=section&id=Item%209B.%20Other%20Information) The company reported no other information required by this item - No other information is reported under this item[403](index=403&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=95&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - This item is not applicable (N/A)[404](index=404&type=chunk) PART III [Directors, Executive Officers, and Corporate Governance](index=95&type=section&id=Item%2010.%20Directors,%20Executive%20Officers,%20and%20Corporate%20Governance) Information on directors, executive officers, corporate governance, Section 16(a) compliance, Code of Ethics, and the audit committee is incorporated by reference from the 2024 Proxy Statement - Information on directors, executive officers, corporate governance, Section 16(a) compliance, Code of Ethics, and the audit committee is incorporated by reference from the 2024 Proxy Statement and Part I of this Form 10-K[405](index=405&type=chunk)[406](index=406&type=chunk)[407](index=407&type=chunk) [Executive Compensation](index=95&type=section&id=Item%2011.%20Executive%20Compensation) Information concerning executive compensation, including director compensation, summary compensation tables, plan-based awards, outstanding equity awards, and related committee reports, is incorporated by reference from the company's 2024 Proxy Statement - Information regarding executive compensation is incorporated by reference from the 2024 Proxy Statement, covering director compensation, summary compensation, plan-based awards, outstanding equity, and compensation committee reports[407](index=407&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=95&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership and equity compensation plans is incorporated by reference from the Proxy Statement, detailing restricted stock and performance unit awards to employees and directors - Information on beneficial ownership is incorporated by reference from the Proxy Statement[411](index=411&type=chunk) - The company grants restricted stock and performance unit awards to key employees and directors under the Omnibus Plan and Equity and Incentive Plan, with vesting periods and performance conditions[408](index=408&type=chunk)[409](index=409&type=chunk) - In 2023 and 2022, the company withheld **24,886** and **27,636 shares**, respectively, for tax withholding obligations related to restricted stock, valued at **$315 (thousand)** and **$410 (thousand)**[410](index=410&type=chunk) - As of December 31, 2023, approximately **12,000 deferred share units** were allotted to non-employee directors under the Deferred Compensation Plan[408](index=408&type=chunk) [Equity Compensation Plans](index=95&type=section&id=Equity%20Compensation%20Plans) [Certain Relationships and Related Transactions, and Director Independence](index=96&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions,%20and%20Director%20Independence) Information regarding transactions with related persons and director independence is incorporated by reference from the company's 2024 Proxy Statement - Information on related party transactions and director independence is incorporated by reference from the Proxy Statement[411](index=411&type=chunk) [Principal Accounting Fees and Services](index=96&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's 2024 Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the Proxy Statement[412](index=412&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=97&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, supplementary data, and exhibits filed as part of the Annual Report on Form 10-K, including audited consolidated financial statements and Schedule II - This item includes the Reports of Independent Registered Public Accounting Firm, consolidated financial statements (Balance Sheets, Statements of Operations, Comprehensive Income (Loss), Cash Flows, Stockholders' Equity), and Notes to Consolidated Financial Statements[414](index=414&type=chunk)[415](index=415&type=chunk) - Schedule II – Valuation and Qualifying Accounts is provided for the years ended December 31, 2023 and 2022, detailing changes in allowance for credit losses and valuation allowance for deferred tax assets[415](index=415&type=chunk)[417](index=417&type=chunk)[418](index=418&type=chunk)[419](index=419&type=chunk) - An Index to Exhibits is included, listing various agreements, plans, and certifications incorporated by reference or filed herewith[416](index=416&type=chunk)[421](index=421&type=chunk) [Form 10-K Summary](index=97&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company has elected not to include a summary of information required by the Annual Report on Form 10-K under this item - The company has elected not to include a summary of information required by the Annual Report on Form 10-K[420](index=420&type=chunk)

L.B. Foster Company (FSTR) logged fourth-quarter 2023 loss of 4 cents per share, narrower than the year-ago quarter's loss of $4.09 per share. The figure was wider than the Zacks Consensus Estimate of a loss of 3 cents.The company recorded revenues of $134.9 million for the quarter, down around 2% year over year. It surpassed the Zacks Consensus Estimate of $127.7 million. Net sales rose 7.7% organically and fell 9.4% due to divestitures.New orders were $105.5 million in the reported quarter, down around 23 ...

Full year 2023 net sales of $543.7 million up 9.3% over prior year (up 11.7% organically) and $3.7 million above the upper end of guidance range; gross margins expanded 270 basis points to 20.7%.Fourth quarter net sales of $134.9 million down 1.7% from prior year quarter (up 7.7% organically1); gross margins expanded 200 basis points to 21.5%.Full year 2023 net cash flow from operations of $37.4 million was favorable $48.0 million over 2022, with free cash flow1 totaling $33.0 million and $2.3 million in st ...

Financial Performance - Full year 2023 net sales reached $543.7 million, a 9.3% increase over the prior year, with organic growth of 11.7%[5] - Fourth quarter net sales were $134.9 million, down 1.7% year over year, but up 7.7% organically[5] - Full year 2023 adjusted EBITDA was $31.8 million, an increase of $7.6 million over the prior year, exceeding guidance by $0.8 million[5] - Fourth quarter adjusted EBITDA was $6.1 million, a decrease of $1.4 million year over year, primarily due to higher selling and administrative expenses[5] - Gross profit for the full year 2023 was $112.8 million, an increase of $23.2 million or 25.9%, with gross profit margin expanding by 270 basis points to 20.7%[15] - Gross profit for Q4 2023 was $29.043 million, representing a gross margin of 21.5%, compared to $26.774 million in Q4 2022[28] - Adjusted EBITDA for Q4 2023 was $6,099 million, down from $7,478 million in Q4 2022, reflecting a margin of 4.5% compared to 5.5% in the prior year[37] - The adjusted EBITDA for the year ended December 31, 2023, was $31,775 million, up from $24,179 million in 2022, indicating improved operational efficiency[37] Orders and Backlog - New orders in the fourth quarter totaled $105.5 million, a decrease of 23.4% year over year, with a backlog of $213.8 million[5] - New orders for the full year totaled $529.0 million, a decrease of 4.2% from the prior year, while backlog decreased by $58.5 million or 21.5%[15] - New orders in the Rail segment decreased by $13.5 million, or 18.3%, with a backlog of $84.4 million, down $20.8 million or 19.8% from the prior year[11] - New orders in the Infrastructure segment decreased by $18.8 million, or 29.3%, with a backlog of $129.4 million, down $37.6 million or 22.5% from the prior year[12] - New orders for Q4 2023 totaled 105,509, a decrease of 23.4% compared to 137,827 in Q4 2022, with organic new orders down by 15.6%[38] Segment Performance - The Infrastructure Solutions segment achieved organic sales growth of 23.1% with gross profit margin expanding to 24.0%[6] - Net sales for the fourth quarter of 2023 in the Rail segment were $69.3 million, a decrease of $8.4 million or 10.9% compared to the prior year, primarily due to the divestiture of the prestressed concrete railroad tie business[11] - In the Infrastructure segment, net sales for Q4 2023 were $65.6 million, an increase of $6.1 million or 10.3% over the prior year, driven by Precast Concrete Products and Steel Products[14] - Gross profit for the Infrastructure segment in Q4 2023 was $15.7 million, an increase of $6.9 million or 77.8%, with gross profit margin rising by 910 basis points to 24.0%[14] - Infrastructure sales increased by 10.3% in Q4 2023, reaching $65,583 million, while rail sales decreased by 10.9% to $69,294 million[38] Debt and Cash Flow - Net debt decreased by $36.3 million in 2023, finishing at $52.7 million, with gross leverage improving from 2.8x to 1.7x[5] - Cash flow from operations for the fourth quarter was $22.1 million, a $13.8 million increase over the prior year quarter[9] - Total debt decreased to $55,273 million as of December 31, 2023, down from $91,879 million in the previous year[37] - The company reported a net debt of $52,713 million as of December 31, 2023, compared to $88,997 million in 2022[37] Loss and Earnings - Operating profit for the year ended December 31, 2023, was $10.138 million, a significant recovery from an operating loss of $7.206 million in 2022[28] - Net loss attributable to L.B. Foster Company for Q4 2023 was $430,000, compared to a net loss of $43.931 million in Q4 2022[28] - The company reported a basic loss per share of $0.04 for Q4 2023, an improvement from a loss of $4.09 per share in Q4 2022[28] - Net loss for Q4 2023 was $(470) million, a significant improvement from a loss of $(43,962) million in Q4 2022[37] Strategic Actions - The company completed four acquisitions and three divestitures in 2023 as part of its strategic transformation plan[8] - The company made adjustments to exclude expenses related to the exit of the bridge grid deck product line and restructuring costs for the year ended December 31, 2023[32] - The company views net debt as an important metric, with total debt less cash and cash equivalents indicating its operational and financial health[33]

Financial Performance - Net sales for the three months ended September 30, 2023, were $145,345, an increase of $15,330 or 11.8% compared to the prior year quarter[80] - Gross profit for the same period was $28,224, up $5,127 or 22.2%, with a gross profit margin of 19.4%, an increase of 160 basis points[88] - Operating profit for the quarter was $2,685, compared to an operating loss of $1,120 in the prior year, reflecting a margin improvement of 270 basis points[80] - Net income attributable to the Company was $515, or $0.05 per diluted share, a favorable change of $2,592 or $0.25 per diluted share from the prior year[92] - For the nine months ended September 30, 2023, net sales increased by $48,543, or 13.5%, to $408,867 compared to the prior year period[106] - Gross profit for the nine months ended September 30, 2023 was $83,767, an increase of $20,930, or 33.3%, with gross profit margin expanding by 310 basis points to 20.5%[108] - Net income attributable to the Company for the nine months ended September 30, 2023 was $1,894, or $0.17 per diluted share, an increase of $3,527 from the prior year[112] Segment Performance - The Rail, Technologies, and Services segment net sales increased by $9,516, or 12.3%, to $86,866 for Q3 2023 compared to Q3 2022[94] - Gross profit for the Rail, Technologies, and Services segment rose by $3,853, or 28.8%, with gross profit margin expanding by 250 basis points to 19.8%[96] - The Precast Concrete Products segment net sales increased by $9,786, or 33.9%, to $38,642 for Q3 2023, driven by organic growth and the VanHooseCo acquisition[98] - Gross profit for the Precast Concrete Products segment increased by $3,619, or 64.1%, with gross profit margin expanding by 440 basis points to 24.0%[100] - The Steel Products and Measurement segment net sales decreased by $3,972, or 16.7%, to $19,837 for Q3 2023, primarily due to the divestiture of Chemtec[102] - The Steel Products and Measurement segment gross profit decreased by $2,345, or 57.6%, with gross profit margin declining by 840 basis points to 8.7%[104] - Rail, Technologies, and Services segment net sales increased by $20,009, or 9.0%, to $242,866 for the nine months ended September 30, 2023, compared to $222,857 in the prior year[114] - Gross profit for the Rail, Technologies, and Services segment rose by $9,796, or 23.6%, with gross profit margin expanding to 21.1% from 18.7%[115] - Precast Concrete Products segment net sales increased by $29,318, or 43.4%, to $96,795, driven by a 27.2% contribution from the VanHooseCo acquisition[118] - Precast Concrete Products segment gross profit increased by $11,024, with gross profit margin expanding by 620 basis points to 23.2%[119] - Steel Products and Measurement segment net sales decreased by $784, or 1.1%, to $69,206, primarily due to a reduction from the Chemtec divestiture[121] Expenses and Costs - Selling and administrative expenses increased by $1,542 or 6.8%, primarily due to higher personnel costs and a bad debt provision charge[89] - The Company incurred $1,069 in exit costs related to the discontinuation of the Bridge Products grid deck product line, with additional expected costs of $520 through 2024[81] Strategic Focus and Transformation - The Company continues to focus on strategic transformation towards technology-driven infrastructure solutions, reducing commoditized offerings[93] - The Company continues to focus on strategic transformation, including divestitures and exits from commoditized offerings to enhance core growth platforms[113] - Recent acquisitions include Skratch Enterprises Ltd. for $7,402 and VanHooseCo Precast, LLC for $52,146, enhancing the Company's technology and precast concrete capabilities[82][84] Tax and Accounting - The effective income tax rate for the quarter was (37.1)%, significantly differing from the federal statutory rate of 21% due to changes in valuation allowances[91] - The Company’s critical accounting estimates are based on management's judgments regarding future uncertainties, which may lead to actual results differing from estimates[138] Debt and Liquidity - As of September 30, 2023, total debt decreased to $71,689 from $91,879 as of December 31, 2022[124] - Net cash provided by operating activities was $15,310 for the nine months ended September 30, 2023, compared to cash used of $18,836 in the prior year[127] - The Company had $2,969 in cash and cash equivalents as of September 30, 2023, with approximately $2,243 held in non-domestic bank accounts[132] - The Company authorized a stock repurchase program of up to $15,000, with $878 spent on repurchasing 63,343 shares during the nine months ended September 30, 2023[130] - The Company believes its liquidity is sufficient to operate prudently and service its outstanding debt, supported by cash and cash equivalents, cash generated from operations, and credit facility capacity[134] Backlog Information - Backlog for the Rail, Technologies, and Services segment as of September 30, 2023 was $93,632, a decrease of $15,232, or 14.0%, compared to the prior year[116] - The total backlog as of September 30, 2023, was $243,219, a decrease from $272,251 as of December 31, 2022, representing a decline of approximately 10.7%[136] - The backlog for Rail, Technologies, and Services was $93,632 as of September 30, 2023, down from $105,241 as of December 31, 2022, indicating a decrease of about 11.5%[136] - The backlog for Precast Concrete Products was $80,391 as of September 30, 2023, slightly down from $80,501 as of December 31, 2022[136] - The backlog for Steel Products and Measurement decreased to $69,196 as of September 30, 2023, from $86,509 as of December 31, 2022, a decline of approximately 20%[136] - The Company’s backlog should not be considered a reliable indicator of future revenue or financial performance due to the potential for order cancellations[136] Credit and Interest Rate Management - The Company amended its Credit Agreement on August 12, 2022, to facilitate the acquisition of VanHooseCo and modified certain financial covenants[134] - The Company entered into SOFR-based interest rate swaps with notional values totaling $20,000 to mitigate the impact of interest rate changes on variable-rate debt[135]

Financial Performance - Net sales for Q2 2023 were $148 million, up 126% year-over-year (YoY) [10] - Organic growth was 133% [10] - Gross margin expanded by 410 basis points to 218% [10] - Adjusted EBITDA for Q2 2023 was $106 million, up 729% YoY [10] - Net income was $35 million, up 768% YoY, despite a $1 million loss on the Ties divestiture [10] - For the six months ended June 30, 2023, sales were $2635 million, a 144% increase YoY [104] Orders and Backlog - New orders for Q2 2023 were $1837 million, up 299% YoY [10] - The book-to-bill ratio for Q2 2023 was 124:100 [10] - Backlog was $2901 million, up 156% YoY, despite a $55 million decline from the sale of the Ties business [10, 11] Guidance - The company reaffirmed its full-year 2023 net sales guidance of $520 million to $550 million [5, 10] - The company updated its adjusted EBITDA guidance to $28 million to $32 million, previously $27 million to $31 million [5, 10]

Financial Data and Key Metrics Changes - Q2 sales reached $148 million, up 12.6% year-over-year, with organic growth at 13.3% [21][32][46] - Adjusted EBITDA was $10.6 million, representing 7.2% of sales, up nearly 73% from last year, marking the highest level since Q2 2020 [26][48] - Gross margins improved by 410 basis points to 21.8% due to higher sales volumes and improved pricing [21][46] Business Line Data and Key Metrics Changes - Rail segment revenues increased by 12% year-over-year to $91.6 million, with 17% organic growth [51] - Precast Concrete segment revenue rose by 43.4% year-over-year, with organic growth of 12.8% [52] - Steel Products and Measurement segment revenues decreased by 13.6% due to the Chemtec divestiture [53] Market Data and Key Metrics Changes - Order rates totaled nearly $184 million for the quarter, with a book-to-bill ratio of 1.24:1, indicating strong demand [45][72] - Rail orders and backlog increased year-over-year, with new orders up 24.8% and backlog up over 6% [40] - The backlog in the Precast Concrete business increased by 28% year-over-year, attributed to the VanHooseCo acquisition [73] Company Strategy and Development Direction - The company is focusing on organic growth programs, particularly in Precast Concrete and Rail Technologies, as primary drivers for profitability [10][60] - Capital allocation priorities include deleveraging while investing in organic growth opportunities, with capital spending expected to be around 1.5% to 2% of sales [60][61] - The company aims to enhance shareholder value through strategic acquisitions and potential stock repurchase programs [61] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing infrastructure investment super cycle, which is expected to provide strong tailwinds for growth [79] - The company anticipates improvements in free cash flow and further reduction of leverage in the second half of the year [29][58] - Management highlighted the importance of government infrastructure funding as a significant driver for future orders [64] Other Important Information - The company completed 7 strategic portfolio transactions, including 3 acquisitions and 4 divestitures, in a challenging operating environment [20] - Net debt increased by $8.2 million to fund working capital needs, resulting in a gross leverage ratio of 2.5x [27][56] - The divestiture of the CXT Concrete Ties business provided $2.4 million in proceeds, which were used to pay down debt [26] Q&A Session Summary Question: Can you comment on backlog and the potential for price realization? - Management reported a backlog of $290 million, with a good balance between Rail and Precast segments, and noted strong bidding activity [92][93] Question: Can you expand on the rebound in pipeline projects? - Management indicated a much better year ahead compared to pre-COVID levels, with a focus on midstream markets [84] Question: What is driving the rebound in the Coatings section? - Management expressed surprise at the rebound in the Coatings business, anticipating continued growth based on bidding activity [115]

Financial Performance - Net sales for the three months ended June 30, 2023, were $148,034, an increase of 12.6% compared to $131,515 in the prior year quarter[73]. - Gross profit for the same period was $32,252, representing a 38.5% increase from $23,293 in the prior year quarter, with gross profit margins expanding to 21.8%[73][81]. - Operating profit increased by 156.0% to $6,349 from $2,480 in the prior year quarter[73]. - Net income attributable to L.B. Foster Company for the three months ended June 30, 2023, was $3,531, or $0.32 per diluted share, up 75.7% from $2,010, or $0.18 per diluted share, in the prior year quarter[73][85]. - For the six months ended June 30, 2023, net sales reached $263,522, a 14.4% increase compared to the prior year, driven by acquisitions and organic growth[99]. - Gross profit for the same period was $55,543, reflecting a 39.8% increase, with gross profit margins expanding by 380 basis points to 21.1%[100]. Segment Performance - The Rail, Technologies, and Services segment reported net sales of $91,616 for the three months ended June 30, 2023, a 12.0% increase from $81,797 in the prior year quarter[87]. - The Rail, Technologies, and Services segment saw a 24.8% increase in new orders, totaling $23,048, driven by government infrastructure investments[90]. - Precast Concrete Products segment net sales increased by $10,254, or 43.4%, with the VanHooseCo acquisition contributing $7,230, or 30.6% of the increase[92]. - The Steel Products and Measurement segment experienced a 13.6% decline in net sales, down $3,554, primarily due to the divestiture of the Chemtec business[95]. - The Steel Products and Measurement segment's backlog increased by $18,635, or 39.4%, compared to the prior year quarter[116]. Expenses and Taxation - Selling and administrative expenses rose by 26.5% to $24,528, primarily due to increased personnel costs[82]. - Selling and administrative expenses increased by 25.2% to $45,951, influenced by acquisitions and higher personnel costs[101]. - The effective income tax rate for the three months ended June 30, 2023, was 13.9%, down from 29.4% in the prior year quarter[84]. Strategic Initiatives - The Company continues to focus on its strategic transformation into a technology-focused infrastructure solutions provider, enhancing core growth platforms[86]. - The Company is focusing on strategic transformation, reducing commoditized offerings to enhance core growth platforms in Rail Technologies and Precast Concrete[106]. Cash Flow and Capital Management - As of June 30, 2023, the Company had $3,880 in cash and cash equivalents, with total debt of $89,505[126][127]. - Net cash used in operating activities for the six months ended June 30, 2023 was $3,333, a significant improvement from $13,382 in the prior year[120]. - Capital expenditures for the six months ended June 30, 2023 were $1,495, down from $3,048 in the prior year, while divestitures generated a cash inflow of $7,706[121]. - The Company authorized a stock repurchase program of up to $15,000, with 51,241 shares valued at $662 repurchased during the six months ended June 30, 2023[123][124]. - The Company believes its liquidity, supported by cash, operations, and credit facilities, is sufficient to meet its operational needs[128]. Backlog and Orders - Total backlog as of June 30, 2023 was $290,076, an increase from $272,251 as of December 31, 2022[130]. - New orders and backlog for the Precast Concrete Products segment increased by 76.0% and 28.2%, respectively, compared to the prior year quarter[113].

Financial Data and Key Metrics Changes - First quarter sales were $115.5 million, up $16.7 million or 16.9% year-over-year, with organic growth at 11.5% [36][47] - Adjusted EBITDA improved $2.8 million year-over-year to $4.5 million, with the EBITDA margin more than doubling to 3.9% [83] - Gross margins expanded 360 basis points to 20.2%, the highest Q1 result since 2019 [29][60] Segment Performance Changes - Rail segment revenues were up slightly year-over-year at $64.4 million, with 5.8% organic growth [2] - Precast Concrete segment revenue increased $9.3 million or 61.8% year-over-year [62] - Steel Products & Measurement segment revenues increased by 33.6%, driven largely by coatings and measurement [85] Market Data and Key Metrics Changes - Consolidated book-to-bill ratio was strong at 1.21:1, with all segments increasing their order books [30] - Orders in backlog were down 19.3% and 7.6% respectively, primarily due to the track components divestiture [62] - Precast backlog increased by 21% over last year, attributed to the VanHooseCo acquisition [66] Company Strategy and Development Direction - The company is focusing on organic growth and core competencies, especially following the divestiture of Chemtech [7][48] - There is a heightened focus on rail safety in the U.S., representing an opportunity for improving demand for Rail Technologies [67] - The company plans to cautiously evaluate opportunities to return cash to shareholders through a $15 million stock repurchase program [54] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously optimistic about key end markets due to government-funded infrastructure programs [38] - The company expects strong revenue growth and improved gross margins to continue through 2023 [84] - Management highlighted that pricing dollars are currently exceeding inflationary dollars, indicating effective pricing strategies [31] Other Important Information - The company reduced net debt by $11.5 million to $77.5 million at quarter end, with $6.2 million in free cash flow [37] - The Chemtech divestiture provided $5.3 million in proceeds, which were used to further deleverage [48] - The company received approximately $3 million in federal income tax refunds, aiding in cash flow [86] Q&A Session Summary Question: Is the strong gross margin in the precast segment sustainable? - Management indicated that the 20.2% margin is a clear signal of being on the right path and emphasized a focus on organic growth [7] Question: Are there plans for more divestitures? - Management stated they will evaluate businesses if growth does not meet expectations but will focus on digesting recent acquisitions for now [10] Question: What is the target gross leverage ratio for the rest of the year? - Management expects to see the gross leverage ratio return closer to 2 by the end of the year, following strong cash generation [100]