L.B. Foster pany(US:FSTR)2021-03-03 19:00Financial Performance - Total net sales decreased by 19.3% to $497.4 million in 2020 from $616.4 million in 2019[211]. - Gross profit declined to $95.0 million, representing a gross margin of 19.1%, down from $120.9 million in 2019[211]. - Net income for 2020 was $7.6 million, a significant decrease from $42.6 million in 2019[211]. - Basic earnings per share from continuing operations were $2.45, down from $4.61 in the previous year[211]. - The company reported a net income of $25,823,000 for 2020, down from $47,974,000 in 2019, indicating a decline of 46.1%[218]. - Segment profit for 2020 was $24,571, down from $43,256 in 2019, reflecting a decline of 43.1%[257]. - The company reported a net loss of $1,866 million for the first quarter of 2020, with a basic loss per share of $0.18[380]. Assets and Liabilities - Total current assets decreased by 9.8% to $195.3 million in 2020 from $216.7 million in 2019[208]. - Total liabilities decreased by 18.5% to $193.5 million in 2020 from $237.7 million in 2019[208]. - Stockholders' equity increased to $176.8 million, up from $169.9 million in 2019[208]. - Cash and cash equivalents decreased by 46.6% to $7.6 million in 2020 from $14.2 million in 2019[208]. - Accounts receivable increased significantly to $15,722,000 in 2020 from $3,368,000 in 2019, reflecting a rise of 366.5%[218]. - Total segment assets decreased to $299,004 in 2020 from $317,011 in 2019, a reduction of 5.4%[257]. - The company had long-term debt of $45,024 million as of December 31, 2020, down from $58,152 million in 2019, a reduction of approximately 22.5%[294]. Cash Flow and Expenditures - Net cash provided by continuing operating activities for the year ended December 31, 2020, was $20,549,000, a decrease of 21.5% from $26,242,000 in 2019[218]. - Total capital expenditures on property, plant, and equipment for 2020 were $9,179,000, an increase of 52.5% from $6,026,000 in 2019[218]. - The net cash used in continuing financing activities was $15,277,000 in 2020, compared to $18,209,000 in 2019, indicating a decrease of 10.7%[218]. Revenue Recognition and Contracts - The Company’s performance obligations under long-term agreements are generally satisfied over time, impacting revenue recognition[199]. - Significant changes in estimates for long-term contracts could impact the timing and amount of revenue and profitability[199]. - Revenue from long-term agreements accounted for 29.4% of total revenue in 2020, compared to 30.3% in 2019[263]. - Revenue recognized over time using an input measure was $101,160 in 2020, down from $136,014 in 2019, a decline of 25.7%[263]. Tax and Deferred Tax Assets - The Company had total deferred tax assets of $47.1 million, net of $1.5 million of valuation allowances as of December 31, 2020[202]. - The company has total deferred tax assets of $48,537 as of December 31, 2020, with a valuation allowance of $1,483[312]. - The federal net operating loss (NOL) carryforward as of December 31, 2020, was $78,300, which can be carried forward indefinitely[316]. - As of December 31, 2020, the total unrecognized tax benefits amounted to $409 million, down from $481 million in 2019, reflecting a decrease of approximately 15%[322]. Interest Rate and Financial Instruments - A 1% change in the interest rate for variable rate debt would have increased or decreased interest expense by approximately $905 for the year ended December 31, 2020[187]. - The Company entered into three forward starting LIBOR-based interest rate swap agreements with notional values totaling $50,000[189]. - The interest rate swap liability was $1,097 and $480 for the years ended December 31, 2020 and 2019, respectively[189]. - The fair value of interest rate swaps was $1,097 million, compared to $480 million as of December 31, 2019[340]. - The company recognized interest income of $470 million from the change in fair value of interest rate swaps for the twelve months ended December 31, 2020[341]. Pension and Retirement Plans - The company maintains three retirement plans covering its employees in the United States, including one frozen defined benefit plan and two defined contribution plans[343]. - The projected benefit obligation for the United States defined benefit plan increased to $8,448 million in 2020 from $7,809 million in 2019, reflecting a change of 8.2%[346]. - The funded status of the United States defined benefit plan at the end of 2020 was $(3,989) million, worsening from $(3,449) million in 2019[346]. - The projected benefit obligation for the United Kingdom defined benefit plan increased to $10,265 million in 2020 from $9,101 million in 2019, a rise of 12.8%[356]. - The funded status of the United Kingdom defined benefit plan at the end of 2020 was $(2,290) million, compared to $(1,811) million in 2019[356]. Environmental and Legal Liabilities - The company is obligated to pay a total of $50 million under the Settlement Agreement with Union Pacific Railroad, with $8 million scheduled for annual payments from 2021 to 2024[371]. - The company's environmental liability balance as of December 31, 2020, was $2,562 million, down from $2,608 million in 2019[377]. - The company expects to incur environmental remediation costs estimated by the EPA to be approximately $1.1 billion to $1.7 billion for the Portland Harbor Superfund Site cleanup[376].