L.B. Foster pany(FSTR) - 2023 Q2 - Quarterly Report

Financial Performance - Net sales for the three months ended June 30, 2023, were $148,034, an increase of 12.6% compared to $131,515 in the prior year quarter[73]. - Gross profit for the same period was $32,252, representing a 38.5% increase from $23,293 in the prior year quarter, with gross profit margins expanding to 21.8%[73][81]. - Operating profit increased by 156.0% to $6,349 from $2,480 in the prior year quarter[73]. - Net income attributable to L.B. Foster Company for the three months ended June 30, 2023, was $3,531, or $0.32 per diluted share, up 75.7% from $2,010, or $0.18 per diluted share, in the prior year quarter[73][85]. - For the six months ended June 30, 2023, net sales reached $263,522, a 14.4% increase compared to the prior year, driven by acquisitions and organic growth[99]. - Gross profit for the same period was $55,543, reflecting a 39.8% increase, with gross profit margins expanding by 380 basis points to 21.1%[100]. Segment Performance - The Rail, Technologies, and Services segment reported net sales of $91,616 for the three months ended June 30, 2023, a 12.0% increase from $81,797 in the prior year quarter[87]. - The Rail, Technologies, and Services segment saw a 24.8% increase in new orders, totaling $23,048, driven by government infrastructure investments[90]. - Precast Concrete Products segment net sales increased by $10,254, or 43.4%, with the VanHooseCo acquisition contributing $7,230, or 30.6% of the increase[92]. - The Steel Products and Measurement segment experienced a 13.6% decline in net sales, down $3,554, primarily due to the divestiture of the Chemtec business[95]. - The Steel Products and Measurement segment's backlog increased by $18,635, or 39.4%, compared to the prior year quarter[116]. Expenses and Taxation - Selling and administrative expenses rose by 26.5% to $24,528, primarily due to increased personnel costs[82]. - Selling and administrative expenses increased by 25.2% to $45,951, influenced by acquisitions and higher personnel costs[101]. - The effective income tax rate for the three months ended June 30, 2023, was 13.9%, down from 29.4% in the prior year quarter[84]. Strategic Initiatives - The Company continues to focus on its strategic transformation into a technology-focused infrastructure solutions provider, enhancing core growth platforms[86]. - The Company is focusing on strategic transformation, reducing commoditized offerings to enhance core growth platforms in Rail Technologies and Precast Concrete[106]. Cash Flow and Capital Management - As of June 30, 2023, the Company had $3,880 in cash and cash equivalents, with total debt of $89,505[126][127]. - Net cash used in operating activities for the six months ended June 30, 2023 was $3,333, a significant improvement from $13,382 in the prior year[120]. - Capital expenditures for the six months ended June 30, 2023 were $1,495, down from $3,048 in the prior year, while divestitures generated a cash inflow of $7,706[121]. - The Company authorized a stock repurchase program of up to $15,000, with 51,241 shares valued at $662 repurchased during the six months ended June 30, 2023[123][124]. - The Company believes its liquidity, supported by cash, operations, and credit facilities, is sufficient to meet its operational needs[128]. Backlog and Orders - Total backlog as of June 30, 2023 was $290,076, an increase from $272,251 as of December 31, 2022[130]. - New orders and backlog for the Precast Concrete Products segment increased by 76.0% and 28.2%, respectively, compared to the prior year quarter[113].