L.B. Foster pany(FSTR) - 2022 Q3 - Quarterly Report

Financial Performance - Net sales for Q3 2022 were $130,015, unchanged from the prior year, with an 8.7% organic increase and a 5.5% increase from acquisitions, offset by a 14.3% decrease from divestitures[113]. - Gross profit for Q3 2022 was $23,096, a 3.7% increase from the prior year, primarily driven by a 107.8% increase in the Precast Concrete Product segment due to the VanHooseCo acquisition[114]. - Selling and administrative expenses increased by $2,562, or 12.8%, from the prior year, with expenses as a percentage of net sales rising to 17.4% from 15.4%[115]. - The net loss for Q3 2022 was $2,077, or $0.20 per diluted share, a decrease of $4,419 from the prior year, primarily due to a $3,956 expense related to the Crossrail project settlement[120]. - Total net sales for the quarter ended September 30, 2022, were $130,015, a slight decrease of 0.0% compared to $130,053 in the prior year[124]. - Total net sales for the nine months ended September 30, 2022, decreased by 10.1% to $360,324 million compared to $400,655 million in 2021[1]. - The Rail, Technologies, and Services segment reported a 2.7% decrease in net sales to $222,857 million, with a gross profit decline of 4.2% to $41,564 million[2]. - Steel Products and Measurement segment sales fell by 42.1% to $69,990 million, with gross profit decreasing by 33.3% to $9,834 million, primarily due to the divestiture of the Piling Products business[4]. Backlog and Orders - The consolidated backlog as of September 30, 2022, was $272,777, an increase of $41,051, or 17.7%, from the prior year[121]. - New orders for Q3 2022 decreased by $1,592, or 1.1%, with a 5.0% organic increase and a 5.6% increase from acquisitions, offset by an 11.7% decrease from divestitures[121]. - New orders in the Rail, Technologies, and Services segment decreased by $27,447, or 32.7%, compared to the prior year, with a backlog of $108,864[129]. - New orders in the Precast Concrete Products segment increased by 31.3% compared to the prior year, with a backlog of $86,612, reflecting strong demand[134]. - The total backlog as of September 30, 2022, increased to $272,777 million from $210,189 million in 2021, reflecting growth across all segments[5]. Tax and Expenses - The effective income tax rate for Q3 2022 was 7.7%, down from 23.2% in the prior year, influenced by a discrete income tax expense of $330 related to the divestiture of the Track Components business[119]. - Selling and administrative expenses increased by 2.5% to $59,310 million, contributing to the operating loss of $927 million[7]. Acquisitions and Divestitures - The Company completed the acquisition of VanHooseCo for $52,203 and the acquisition of Skratch Enterprises Ltd. for $7,402, while divesting the Track Components business for $7,795[110][111][112]. - The Company aims to transform into a technology-focused, high-growth infrastructure solutions provider, as evidenced by recent acquisitions and divestitures[121]. - The company acquired Skratch for $7,402 and VanHooseCo for $52,203, resulting in a cash outflow of $58,561 during the nine months ended September 30, 2022[164][165]. - The company had an increase in outstanding debt of $69,155 for the nine months ended September 30, 2022, largely due to acquisitions[165]. Cash Flow and Debt - The company's total debt was $98,919 million as of September 30, 2022, primarily comprised of borrowings under its revolving credit facility[10]. - As of September 30, 2022, the company had $4,943 in cash and cash equivalents, with total available funding capacity of $35,616[166][167]. - For the nine months ended September 30, 2022, net cash used in continuing operating activities was $18,836, compared to $6,810 in the prior year[161][162]. - Days sales outstanding as of September 30, 2022, was 47 days, indicating a high-quality receivables portfolio[163]. - The company had $30,673 of net availability under its revolving credit facility as of September 30, 2022[167]. - The company amended its Credit Agreement on August 12, 2022, to accommodate the acquisition of VanHooseCo and modify certain financial covenants[168].