L.B. Foster Company · NASDAQ:FSTR
L.B. Foster — Q1 2021 Earnings Presentation
32 slides from L.B. Foster's earnings presentation, May 4, 2021
Slide 1: Q1 2021 Earnings Presentation
Q1 2021 Earnings Presentation May 4, 2021 Bob Bauer – President and Chief Executive Officer Bill Thalman – Senior Vice President and Chief Financial Officer
Slide 2: Safe Harbor Statement Non-GAAP Financial Measures
Safe Harbor Statement Non-GAAP Financial Measures This release may contain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A This investor presentation discloses the following non-GAAP measures: of the Securities Act of
Slide 3: Who we are
Who we are NASDAQ: FSTR 2020 Net Sales by Region ($ in millions) • Leading provider of products and services for the rail industry, and solutions to support critical infrastructure projects • Headquartered in Pittsburgh, Pennsylvania 1902 39 1,130 $0.98 1 $44.6 FOUNDED PLANTS EMPLOYEES 2020 DILUTED
Slide 4: First quarter 2021 showed seasonality and pandemic softness
• In line with expectations, the first quarter of 2021 showed business seasonality as well as softness stemming from lingering pandemic-related challenges in our markets. • Revenue of $116.1M for the quarter ended March 31, 2021 reflects a decline of $5.8M from the quarter ended March 31, 2020. • Th
Slide 5: March activity levels indicate potentially rebounding markets
• March activity levels in both segments, as well as increased ridership trends and new federal funding, indicate potentially rebounding markets. • March sales trends could be an indication of market recovery in both segments of the Company. • Future market trends as well as new and prospective legi
Slide 6: Financial Review
FINANCIAL REVIEW Bill Thalman – Senior Vice President and Chief Financial Officer
Slide 7: Q1 2021 vs Q1 2020 Metrics
• First quarter 2021 Metrics Q1 2021 Q1 2020 Delta results reflect the ($ in millions, unless otherwise noted; except per share data) impact of seasonality, From continuing operations: weather effects, and Sales $ 116.1 $ 121.9 $ (5.8) (4.8%) pandemic-related delays Gross Profit 18.8 23.1 (4.3) (18.
Slide 8: Segment Sales, Gross Profit and Profit
Three Months Ended Three Months Ended Segment Sales March 31, 2021 March 31, 2020 Delta ($ in millions) $ % of Sales $ % of Sales $ % Rail Technologies and Services 66.2 57.1% 70.2 57.6% (4.0) (5.7%) Infrastructure Solutions 49.8 42.9% 51.7 42.4% (1.9) (3.6%) Total $ 116.1 $ 121.9 $ (5.8) (4.8%) Thr
Slide 9: Quarterly Revenue and Gross Profit
Quarterly Revenue Quarterly Gross Profit ($in millions) ($ in millions) $51.7 $49.9 12 $10.6 • Segment results for Q1 2021 reflect 50 10 increases in revenue over the prior $9.4 year quarter in both the Precast 40 $22.7 8 Concrete and Fabricated Steel Products $6.6 business lines, which were offset
Slide 10: Total New Orders and Revenue Levels
Total New Orders and Revenue Levels ($ in millions) 150 • Orders outpaced revenue 125 $134 $142 $134 $136 $131 $131 4 of the last 5 quarters, 100 $122 $118 $116 $116 with a TTM book-to-bill 75 ratio1 1.09 as of March 50 31, 2021. 25 • For the TTM ended March 0 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
Slide 11: Free Cash Flow Yield
Free Cash Flow Yield ($ in millions, unless otherwise noted, except per share TTM March 31, • Exceptional free cash flow price; shares outanding in millions) 2020 2019 generation in the quarter, 2021 resulting in 13.4% TTM free Cash Provided by Continuing Operating cash flow yield2. $ 33.1 $ 20.5 $
Slide 12: Liquidity and Funding Capacity
($ in millions, unless otherwise noted) March 31, December 31, March 31, 2021 2020 2020 Cash & Cash Equivalents $ 5.0 $ 7.6 $ 6.4 • Total available funding capacity expanded $5.8M Total Availability Under the Credit Facility 115.0 115.0 140.0 in Q1 and stands at Outstanding Borrowings on Revolving C
Slide 13: Net Debt and Adjusted Net Leverage Ratio
CHANGE IN ADJUSTED NET LEVERAGE RATIO 1 4.0x $100.0 $92.3 $90.0 3.5x • Net Debt1 declined a $80.0 further $5.6M in Q1 3.0x $70.0 2021 to $31.8M at quarter end. Net Debt (in millions) 2.5x 2.4x $64.7 $60.0 $57.8 • Over the longer term, $44.0 2.0x $50.0 the Company’s 1.6x $37.5 systematic approach $40
Slide 14: Backlog vs. Prior Year and Prior Quarter
• Backlog trends continue to remain strong, which the Backlog vs. Prior Year Company believes is indicative of increases in activity and ($ in millions) March 31, 2021 March 31, 2020 Y-o-Y spend in markets served. Rail Technologies and Services $ 122.5 $ 108.9 $ 13.6 12.4% • Rail backlog increased 1
Slide 15: Business Review
BUSINESS REVIEW Bob Bauer – President and Chief Executive Officer
Slide 16: Backlog trends remain favorable across both segments
Consolidated Backlog Rail Technologies and Services Backlog Infrastructure Solutions Backlog ($ in millions) ($ in millions) ($ in millions) Y-o-Y $121 $122 change $149 change Y-o-Y $300 Y-o-Y $125 $272 change $109 12% $150 $109 $106 17% 15% $237 $248 $128 $127 $250 $235 $126 $225 $100 $125 $119 40%
Slide 17: Trends and Impact / Opportunity
Trend Impact / Opportunity U.S. Federal Funding for Public Transit Potential Increase in Demand for Multiple Product Lines Recent COVID relief packages as well as annual funding for transit totaling ~$83 Increased federal funding coupled with rebounding economic activity and ridership billion: $25B
Slide 18: Current and Prospective Infrastructure Legislation
Current: Prospective: The Great American Outdoors Act – July 2020 The American Jobs Plan Relevant Highlights • Addresses the multi-billion dollar deferred maintenance backlog at U.S. national parks and public lands Relevant Highlights • Provides up to $1.9 billion per year for five years to restorin
Slide 19: Market conditions expected to drive growth
Transit Rail Freight Rail Fabricated Steel • Substantial pent-up demand in this • Continued rebound in ridership levels • Rail industries planned increases in market, per the 2021 American across regions served by the capital spend in 2021. Society of Civil Engineers Report Card Company. • General i
Slide 20: Appendix
LBFoster. APPENDIX
Slide 21: Prior and New Segment Structure
Prior Segment Structure New Segment Structure Through Q2 2020 Updated Q3 2020 Rail Products and Services Rail Products Rail Technologies and Services Rail Technologies Rail Products Rail Technologies Construction Products Piling and Fabricated Bridge Precast Concrete Products Infrastructure Solution
Slide 22: Rail Technologies and Services Reporting Segment
Reporting Rail Technologies and Services Segment Supports the Company’s focus on serving transit and freight railway Rail Technologies & Services operators and related infrastructure. Product Lines • The Company has been evolving from a track components supplier to a company that introduces solution
Slide 23: Infrastructure Solutions: Custom Engineered Solutions
• Custom engineered solutions tailored to Custom Engineered Solutions for Complex customer specification, driven by growth in Project Applications Infrastructure Projects demand for transportation, energy, or civil / city planning. Transportation Heavy Civil • Infrastructure oriented businesses supp
Slide 24: New Orders Entered
New Orders Entered – Three Months Ended ($ in millions) March 31, 2021 March 31, 2020 Y-o-Y Rail Technologies and Services $ 68.7 $ 75.3 $ (6.7) (8.9%) Infrastructure Solutions 66.9 55.5 11.5 20.7% Total $ 135.6 $ 130.8 $ 4.8 3.7% New Orders Entered – Three Months Ended ($ in millions) March 31, 202
Slide 25: Consolidated Statement of Operations
Three Months Ended Three Months Ended March 31, 2021 March 31, 2020 Delta ($ in millions except per share data) $ % of Sales $ % of Sales $ % Sales $ 116.1 - $ 121.9 - $ (5.8) (4.8%) Gross profit 18.8 16.2% 23.1 19.0% (4.3) (18.6%) SG&A 18.0 15.5% 20.3 16.7% (2.3) (11.4%) Amortization expense 1.5 1.
Slide 26: Assets
Assets March 31, 2021 December 31, 2020 ($ in millions) Current assets: Cash and cash equivelants $ 5.0 $ 7.6 Accounts receivable - net 65.7 58.3 Inventories - net 117.4 116.5 Other current assets 13.7 13.0 Total current assets $ 201.8 $ 195.3 Property, plant, and equipment - net 61.6 62.1 Operaring
Slide 27: Liabilities and Stockholders' Equity
Liabilities and Stockholders' Equity March 31, 2021 December 31, 2020 ($ in millions) Current liabilities: Accounts payable and accrued liabilities 108.1 94.9 Current maturities of long-term debt 0.1 0.1 Liabilities of discontinued operations 0.1 0.3 Total current liabilities $ 108.3 $ 95.3 Long ter
Slide 28: Cash Flow Summary
Three months ended Three months ended ($ in millions) March 31, 2021 March 31, 2020 Net loss and other non-cash items from continuing operations $ 2.3 $ 4.8 Receivables (7.2) (1.2) Inventory (0.4) 3.6 Payables and deferred revenue 19.6 3.3 Trade Working Capital subtotal $ 11.9 $ 5.7 All other1 (6.6)
Slide 29: EBITDA Reconciliation
Three Months Ended Twelve Months Ended ($ in millions) March 31, December 31, March 31, March 31, March 31, 2021 2020 2020 2021 2020 Net income from continuing operations, as reported $ (1.3) $ 2.3 $ (0.0) $ 24.6 $ 44.0 Interest expense, net 0.9 0.9 0.8 3.8 4.4 Income tax benefit (0.3) (0.1) (0.1) (
Slide 30: Annual EBITDA Reconciliation
Year Ended ($ in millions) December 31, December 31, December 31, December 31, 2017 2018 2019 2020 Net income (loss) from continuing operations, as reported $ 6.8 $ (30.6) $ 48.0 $ 25.8 Interest expense, net 8.1 6.1 4.9 3.8 Income tax expense (benefit) 7.2 6.0 (23.8) (11.8) Depreciation expense 9.3
Slide 31: Adjusted Net Income Reconciliation
Twelve Months Three Months Ended Ended ($ in millions) March 31, 2021 December 31, March 31, 2020 December 31, 2020 2020 Net income from continuing operations, as reported $ (1.3) $ 2.3 $ (0.0) $ 25.8 Relocation and restructuring costs, net of tax benefit of $0.0, $0.1, $0.2, and - 0.3 0.5 1.9 $0.6,
Slide 32: Net Debt and Leverage Ratio Reconciliation
March 31, December 31, March 31, December 31, December 31, December 31, 2021 2020 2020 2019 2018 2017 ($ in millions) Outstanding Borrowings on Revolving Credit Facility $ 36.5 $ 44.8 $ 40.7 $ 33.9 $ 74.0 $ 128.5 Term Loan Outstanding - - 23.1 23.8 - - Financing Leases and Financing Arrangements 0.3