L.B. Foster pany(US:FSTR)2023-03-09 16:00Financial Performance - Total net sales for the year ended December 31, 2022, were $497.5 million, a decrease of 3.8% from $513.6 million in 2021[206]. - Gross profit for 2022 was $89.6 million, representing a gross margin of 18.0%, compared to $86.3 million and a margin of 16.8% in 2021[206]. - The company recorded a net loss of $45.7 million for 2022, compared to a net income of $3.5 million in 2021, resulting in a basic loss per share of $4.25[206]. - Total comprehensive loss from continuing operations attributable to L.B. Foster Company was $47,899 thousand in 2022, a significant decline from a comprehensive income of $4,977 thousand in 2021[208]. - Cash used in continuing operating activities amounted to $10,576 thousand in 2022, compared to $810 thousand in 2021, indicating a deterioration in cash flow[213]. - The company reported a net loss attributable to L.B. Foster Company of $(44,564) for the year ended December 31, 2022, compared to a net income of $2,223 in 2021[266]. Segment Performance - In 2022, the Rail, Technologies, and Services segment accounted for 60% of total net sales, up from 58% in 2021[14]. - The Precast Concrete Products segment increased its contribution to 21% of total net sales in 2022, compared to 14% in 2021[14]. - The Steel Products and Measurement segment's share of total net sales decreased to 19% in 2022 from 28% in 2021[14]. - Segment operating profit for the Steel Products and Measurement segment was $(10,824) in 2022, compared to $(2,402) in 2021, indicating a decline in profitability[255]. Acquisitions and Divestitures - The Company acquired Skratch Enterprises Ltd. in June 2022, enhancing its capabilities in intelligent digital signage solutions[21]. - In August 2022, the Company acquired VanHooseCo Precast, expanding its market reach to commercial and residential developers in Tennessee[22]. - The Company completed the sale of its Track Components division in August 2022, focusing on strategic growth initiatives[19]. - The Company divested its Track Components business on August 1, 2022, resulting in a pre-tax loss of $467 million[250]. - The acquisition of VanHooseCo for $52,146 on August 12, 2022, contributed net sales of $17,788 and operating profit of $1,555 from August 12, 2022, to December 31, 2022[260][264]. Assets and Liabilities - Total current assets rose to $205.7 million in 2022, up from $179.5 million in 2021, driven by an increase in accounts receivable[203]. - Total liabilities increased significantly to $227.7 million in 2022 from $164.0 million in 2021, primarily due to a rise in long-term debt[203]. - The total long-term debt as of December 31, 2022, was $91,879 million, significantly up from $31,251 million in 2021, reflecting a 194.5% increase[295]. - The total stockholders' equity decreased to $137.6 million in 2022 from $183.6 million in 2021, reflecting the net loss and changes in retained earnings[203]. Cash Flow and Expenditures - The company reported capital expenditures on property, plant, and equipment of $7,633 thousand in 2022, up from $4,620 thousand in 2021[213]. - The company recognized total segment expenditures for long-lived assets of $4,318 in 2022, compared to $3,600 in 2021, showing increased capital investment[256]. - The company reported a depreciation expense of $8,635 million for the year ended December 31, 2022, compared to $8,051 million in 2021, representing a 7.2% increase[287]. Employee and Workforce - The Company had a total of 1,131 employees as of December 31, 2022, with 867 located in the U.S., 43 in Canada, 215 in Europe, and 6 in other locations[49]. - The Company has implemented initiatives to advance diversity and inclusion, including changes to recruitment and employee training[40]. - The Company has a workforce that includes approximately 44 union-represented hourly production workers[49]. Environmental, Health, and Safety (EHS) - The Company aims to create a culture of environmental, health, safety, and sustainability excellence, striving to exceed EHS regulations[42]. - The Company emphasizes continual improvement in its EHSS performance, particularly in pollution prevention and reducing environmental impact[42]. - The Company has 10 locations/businesses throughout North America and Europe that are compliant with ISO 14001:2015 and ISO 45001:2018 standards[42]. Tax and Deferred Assets - The total income tax expense for 2022 was $36,681,000, with an effective tax rate of (407.7)% due to significant deferred tax adjustments[311]. - Deferred tax assets totaled $51,016,000 as of December 31, 2022, with a valuation allowance of $40,601,000, indicating a significant portion is not expected to be realized[312]. - The company has a federal Net Operating Loss (NOL) carryforward of $96,034,000, which may be carried forward indefinitely but is limited to 80% of taxable income annually[314]. Stock and Compensation - The Company has not granted any stock options under the Omnibus Plan or Equity and Incentive Plan in 2022 and 2021, resulting in no stock-based compensation expense for those years[324]. - The total compensation expense related to non-employee directors' restricted stock awards was approximately $697,000 in 2022, up from $650,000 in 2021[327]. - The Company granted 125,582 restricted stock awards in 2022, with 86,613 shares vesting during the same period[330].