L.B. Foster Company (FSTR) Investor Presentation

Transaction Overview - L B Foster sold its Steel Piling business to an unaffiliated buyer effective September 24, 2021[5] - The company expects to realize proceeds of approximately $24 million from the sale[5] - The sale proceeds of $24 million imply an Adjusted EBITDA multiple of approximately 8x[18] Financial Performance of Steel Piling - For the six months ended June 30, 2021, Steel Piling's sales were $42 9 million, compared to $31 1 million for the same period in 2020[15] - Gross profit margin for the six months ended June 30, 2021, was 7 5%, compared to 10 3% for the same period in 2020[15] - Adjusted EBITDA for the six months ended June 30, 2021, was $1 4 million, compared to $0 6 million for the same period in 2020[15] - Average trade working capital as a percentage of sales was 35 9% for the six months ended June 30, 2021, compared to 54 2% for the same period in 2020[15] Rationale for the Sale - Steel Piling is a commodity-driven business that does not align with the company's focus on providing unique, innovative solutions[5] - The business had a disproportionate level of working capital in relation to sales and profitability[13] - Slow inventory turns drove poor Return on Invested Capital (ROIC) well below corporate targets[13]