L.B. Foster pany(US:FSTR)2021-05-05 16:18Financial Performance - Net sales for Q1 2021 were $116,080, a decrease of $5,827 or 4.8% compared to the prior year quarter, with Rail and Infrastructure Solutions segments declining by 5.7% and 3.6% respectively[95]. - Gross profit for Q1 2021 was $18,830, a decrease of $4,292 or 18.6% from the prior year quarter, with a consolidated gross profit margin of 16.2%, down 280 basis points[96]. - Selling and administrative expenses decreased by $2,311 or 11.4% from the prior year quarter, with expenses as a percentage of net sales decreasing to 15.5%, down 120 basis points[97]. - Net loss from continuing operations for Q1 2021 was $1,270 or $0.12 per diluted share, a reduction of $1,265 or $0.12 per diluted share from the prior year quarter[98]. - Total net sales for Q1 2021 were $116,080, a decrease of $5,827 or 4.8% compared to Q1 2020[105]. - Gross profit for Q1 2021 was $18,830, down $4,292 or 18.6% year-over-year, with a gross profit margin of 16.2%[106]. - Rail Technologies and Services segment net sales decreased by $3,972 or 5.7%, while gross profit increased by $313 or 2.5%[112]. - Infrastructure Solutions segment net sales decreased by $1,855 or 3.6%, with gross profit declining by $4,605 or 43.3%[116]. Backlog and Orders - Backlog increased by 16.5% for the Infrastructure Solutions segment and 12.4% for the Rail segment compared to the prior year period, indicating ongoing spending in infrastructure markets[99]. - The consolidated backlog stood at $271,944 as of March 31, 2021, an increase of $23,712 or 9.6% from December 31, 2020, and an increase of $34,704 or 14.6% over the prior year period[102]. - The Infrastructure Solutions segment backlog increased by $22,482 or 17.7% sequentially from December 31, 2020, driven by strong order activity in Precast Concrete Products[100]. - The Rail segment backlog improvement of $13,551 year-over-year was primarily in the Rail Products business line, with expectations for further recovery in Rail Technologies[101]. - New orders in the Infrastructure Solutions segment increased by 20.7% compared to the prior year quarter[118]. - Total backlog as of March 31, 2021 was $271,944, an increase of $23,712 or 9.5% from March 31, 2020[119]. Cash Flow and Liquidity - The Company had cash and cash equivalents of $5,015 and total available funding capacity of $82,633 as of March 31, 2021[121]. - For the three months ended March 31, 2021, net cash provided by continuing operating activities was $7,614, compared to a use of $4,902 in the same period of 2020, representing a significant improvement[124]. - The net loss from continuing operations and adjustments provided $2,310 in the current period, an improvement from $4,752 in the prior year[124]. - Capital expenditures for the three months ended March 31, 2021, were $1,327, down from $2,806 in the same period of 2020, primarily related to the expansion of the Precast Concrete Products business line in Texas[126]. - The Company reduced outstanding debt by $8,295 during the three months ended March 31, 2021, compared to an increase of $6,017 in the same period of 2020[127]. - As of March 31, 2021, the Company had $5,015 in cash and cash equivalents, with approximately $4,488 held in non-domestic bank accounts[128]. - The Company's current ratio as of March 31, 2021, was 1.86, indicating a strong liquidity position[129]. - The revolving credit facility had $77,618 of net availability as of March 31, 2021, with total capacity reduced to $115,000[130][131]. - The net decrease in cash and cash equivalents for the three months ended March 31, 2021, was $(2,549), an improvement from $(7,760) in the same period of 2020[123]. Tax and Expenses - The effective income tax rate for Q1 2021 was 20.2%, significantly lower than 92.1% in the prior year quarter[108]. - Days sales outstanding improved to 48 days as of March 31, 2021, down from 51 days at December 31, 2020, indicating a high-quality receivables portfolio[125]. - Gross profit margins are expected to improve as sales on certain consumables and service work return, with an anticipated strong sequential increase in sales from Q1 to Q2 2021[102]. - Selling and administrative expenses decreased by $2,311 or 11.4% compared to the prior year quarter, primarily due to cost containment measures[107]. Risk Management - The Company entered into forward starting LIBOR-based interest rate swaps with notional values totaling $50,000 to mitigate interest rate risks[132].