L.B. Foster pany(FSTR) - 2023 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2023, were $115,488, an increase of $16,694 or 16.9% compared to the prior year quarter[68]. - Gross profit for the same period was $23,291, up $6,844 or 41.6%, with gross profit margins expanding by 360 basis points to 20.2%[75]. - Selling and administrative expenses increased by $4,125 or 23.8%, representing 18.5% of net sales compared to 17.5% in the prior year quarter[76]. - The net loss attributable to L.B. Foster Company for the three months ended March 31, 2023, was $2,152, or $0.20 per diluted share, a decline of 37.4% from the prior year[79]. Segment Performance - The Rail, Technologies, and Services segment reported net sales of $64,384, a 1.1% increase from the prior year, with a gross profit margin of 22.2%[81]. - The Precast Concrete Products segment's net sales increased by $9,278, or 61.8%, to $24,288, with gross profit rising by $3,076, or 125.8%, to $5,521[84]. - The Steel Products and Measurement segment's net sales increased by $6,742, or 33.6%, to $26,816, with gross profit rising by $2,012, or 136.5%, to $3,486[87]. - The Rail, Technologies, and Services segment experienced a decrease in new orders of $17,664, or 19.3%, compared to the prior year period, with a backlog of $113,593, down $9,325, or 7.6%[83]. - The Steel Products and Measurement segment had an increase in new orders and backlog of $4,697, or 18.9%, and $9,220, or 18.7%, respectively[89]. - The VanHooseCo acquisition contributed $8,299, or 55.3%, of the increase in sales for the Precast Concrete Products segment, while organic sales increased by $979, or 6.5%[84]. Strategic Actions - The company executed strategic acquisitions, including Skratch for $7,402 and VanHooseCo for $52,146, enhancing its portfolio in technology and precast concrete products[70][71]. - The divestiture of the Track Components business generated cash proceeds of $7,795, while the sale of Chemtec resulted in a loss of $2,033 recorded in "Other expense (income) - net"[72][73]. - Organic growth contributed 11.5% to sales, while acquisitions added 9.3%, offset by a 3.9% decline from divestitures[74]. - The company plans to focus on organic growth initiatives and debt reduction following the sale of Chemtec, which will support its strategic transformation[80]. Financial Position - As of March 31, 2023, the Company had total debt of $80,096, down from $91,879 as of December 31, 2022, reflecting a decrease of $12,047[90]. - The Company reported net cash provided by operating activities of $6,932 for the three months ended March 31, 2023, compared to cash used in operating activities of $7,636 in the prior year[93]. - Capital expenditures for the three months ended March 31, 2023, were $699, down from $1,764 in the prior year, primarily for general plant and operational improvements[94]. - The Company had $2,639 in cash and cash equivalents as of March 31, 2023, with approximately $2,136 held in non-domestic bank accounts[99]. - The total backlog as of March 31, 2023, was $259,881, a decrease from $272,251 as of December 31, 2022[103]. Accounting and Estimates - The Condensed Consolidated Financial Statements are prepared in accordance with generally accepted accounting principles in the United States[105]. - Management's estimates regarding future uncertainties may lead to actual results differing from these estimates[105]. - A summary of critical accounting policies and estimates is included in the Annual Report on Form 10-K for the year ended December 31, 2022[105].