PITTSBURGH, March 01, 2016 (GLOBE NEWSWIRE) --
L.B. Foster Company (NASDAQ:FSTR), a leading manufacturer,
fabricator, and distributor of products and services for rail,
construction, energy and utility markets, today reported its fourth
quarter 2015 operating results, which included diluted earnings per
share of $0.32 and cash flow provided by operating activities of
$42.5 million. Other noteworthy items in the fourth quarter
were:
-
Sales decreased by 13.7% to $139.1
million
-
Adjusted gross profit margin1 was
21.5% compared to 22.6% in the prior year (21.5% and 19.6%
reported)
-
Adjusted EBITDA was $11.2 million compared to
$17.4 million in the prior year quarter
-
Cash flow generated by operating activities was
$42.5 million compared to $17.0 million in the prior year
quarter
-
The Company reduced its outstanding borrowings
by $38.7 million in the fourth quarter of 2015
-
The Company sold certain concrete tie
manufacturing assets located in Tucson for $2.8 million and
recognized a $2.3 million gain ($0.13 per share) on that
sale
-
The TEW Engineering acquisition performed in
line with our Rail segment operating margins and profitability,
however, the IOS ("test and inspection services") acquisition was
dilutive in both operating margins and profitability (approximately
$0.25 per diluted share)
Fourth Quarter Results
-
Fourth quarter net sales of $139.1 million
decreased by $22.0 million, or 13.7%, compared to the prior year
quarter due to a 16.5% decrease in Rail Products and Services
("Rail") segment sales and a 35.6% decline in Construction segment
sales, partially offset by a 145.1% increase in Tubular and Energy
Services ("Tubular") segment sales driven by recent
acquisitions.
-
Gross profit margin was 21.5% compared to 19.6%
in the prior year quarter, an increase of 190 basis points.
The increase was due to a fourth quarter 2014 $4.8 million
warranty charge related to concrete railroad ties manufactured in
our Grand Island, Nebraska facility which closed in February
2011. Excluding this charge, fourth quarter 2014 gross profit
would have been 22.6%. The resulting 110 basis point decline in
gross profit margin was due principally to lower Tubular and Rail
segment margins, partially offset by improved Construction segment
margins.
-
Fourth quarter net income was $3.3 million, or
$0.32 per diluted share, compared to $6.0 million, or $0.58 per
diluted share, last year. Excluding the previously mentioned
gain on the sale of Tucson concrete tie manufacturing assets and
the fourth quarter 2014 warranty charge, adjusted EPS would have
been $0.19 per share in 2015 compared to $0.85 in 2014.
-
Selling and administrative expense increased by
$3.0 million, or 13.8%, due entirely to the costs of businesses
acquired after the third quarter of 2014. Excluding acquired
company costs, selling and administrative costs were lower by $0.6
million or 2.8% due principally to reductions in incentive
compensation expense.
-
Interest expense was $1.2 million in the fourth
quarter of 2015 compared to $0.1 million in the prior year quarter,
the increase being attributable to borrowings related to the recent
acquisitions.
-
Amortization expense increased by $2.1 million
or 176.7% due to the acquisitions purchased after the third quarter
of 2014.
-
Other income was $4.3 million compared to $0.4
million in the fourth quarter of the prior year. The increase
is attributable principally to the gain on sale of the Tucson
concrete tie manufacturing assets as well as foreign exchange
gains.
-
Fourth quarter bookings were $114.7 million, a
0.3% decrease from the prior year fourth quarter, due to 2.4% and
46.4% declines in Rail and Construction segment orders,
respectively, partially offset by a 233.2% increase in
Tubular segment orders. The increase in Tubular segment
orders was due to orders generated by our recently acquired energy
businesses.
-
The Company's effective income tax rate was
35.2%, compared to 37.5% in the prior year quarter. The
Company's effective income tax rate compares favorably to the prior
year quarter principally due to decreased non-deductible expenses
and rate reductions in foreign jurisdictions.
-
Cash flow from operating activities for the
fourth quarter of 2015 generated $42.5 million compared to $17.0
million in the fourth quarter of 2014. Over $30.0 million of
the 2015 cash flow related to working capital improvement, a
portion of which represents a proportionate reduction in the Q3 to
Q4 sequential sales decline. The remainder was due to
improved working capital performance which underperformed in the
first half of 2015.
CEO Comments
Robert P. Bauer, L.B. Foster Company's President and Chief
Executive Officer, commented, "Our operating results for the
quarter continued to reflect the unfavorable impact the commodity
cycle has had on the markets we serve. The weaker revenues
and resulting deleveraging masked some outstanding work performed
in our various business units. As we navigated through the
challenges of weak market conditions coupled with the loss of
business from Union Pacific Railroad ("UPRR"), our team did a great
job of acting on working capital and manufacturing efficiency
programs. We are acting with a sense of urgency as we enter
new markets and look for ways to improve our processes to enhance
efficiency and continue cost reductions. Improved working
capital management produced strong cash flow which we used to pay
down more than $38.7 million of debt. In addition, we sold our
Tucson concrete tie manufacturing equipment following the decision
to close the facility, which resulted in $2.8 million in cash and
significant cost savings as we avoided having to dismantle and move
the equipment."
Mr. Bauer continued, "Due to continued weakness in
the North American freight rail market and upstream energy markets,
our attention will remain on opportunities for business integration
and reducing costs. The outlook for steel prices is also
indicating little expected recovery in 2016 as well. This
will lead to competitive pressure particularly in our rail and
piling distribution businesses for another year. Consequently, we
will begin 2016 by reducing capital spending plans as we remain
focused on free cash flow. On the other hand, I'm very pleased to
see that we're beginning the year with significantly higher backlog
in our precision measurement systems and coated pipe services
driven by midstream energy customers. We have shipments
scheduled through the second quarter with production rates that are
near capacity."
Mr. Bauer concluded by remarking, "As part of the
Company's facility modernization and business efficiency program,
we anticipate a second quarter 2016 "go-live" date for the new
Enterprise Resource Planning system. Two manufacturing
divisions have been thoroughly tested and meet the criteria for
transition from our previous ERP system. The Company has dedicated
a team of subject matter experts to this program to maximize the
benefits of this powerful system. We are looking forward to
getting this transition underway and to the benefits it will bring
in the future."
Q4 Business
Segment Highlights
($000's)
Rail Products and Services Segment
Rail sales decreased 16.5% due to lower sales across our rail
product lines, with the exception of transit products, as a result
of reduced volumes and lower steel prices. Reduced sales to
UPRR accounted for more than half of the decline. Reduced sales
volumes and lower steel prices in 2015 negatively impacted margins,
however, gross profit margin was still buoyed by manufacturing
efficiencies and cost reductions.
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
Variance |
Sales |
$ |
76,452 |
|
$ |
91,530 |
|
|
(16.5 |
%) |
Gross Profit
Excluding charges |
$
$ |
17,858
17,858 |
|
$
$ |
18,920
23,686 |
|
|
Gross Profit
%
Excluding charges |
|
23.4
23.4 |
%
% |
|
20.7
25.9 |
%
% |
|
|
|
|
|
Construction Products Segment
Construction sales declined 35.6% in the quarter due to a
significant reduction in piling product sales, partially offset by
increased sales in our concrete products group. Gross profit
margins improved due to increased margins for fabricated bridge
products and concrete products, partially offset by a decline in
margins for piling products.
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
Variance |
Sales |
$ |
38,494 |
|
$ |
59,747 |
|
|
(35.6 |
%) |
Gross Profit |
$ |
7,462 |
|
$ |
10,565 |
|
|
Gross Profit
% |
|
19.4 |
% |
|
17.7 |
% |
|
|
|
|
|
|
|
|
|
Tubular and Energy Services Segment
Tubular sales improved by 145.1% in the quarter due to sales from
our acquired energy businesses, partially offset by softer sales of
threaded products. Tubular gross profit margins declined due
principally to lower margins reported by the acquired
businesses.
|
|
|
|
|
|
|
|
|
|
2015 |
|
|
2014 |
|
Variance |
Sales |
$ |
24,192 |
|
$ |
9,872 |
|
|
145.1 |
% |
Gross Profit |
$ |
2,864 |
|
$ |
1,981 |
|
|
Gross Profit
% |
|
11.8 |
% |
|
20.1 |
% |
|
|
|
|
|
|
|
|
|
Full Year Results
-
Net sales for 2015 increased by $17.3 million,
or 2.9%, due to a 121.8% increase in Tubular segment sales,
partially offset by a 12.2% decline in Rail segment sales and a
1.4% decline in Construction segment sales. The Tubular sales
increase was due to the recent energy related acquisitions.
The Construction segment decrease was driven principally by the
Piling Products division, partially offset by increases in the
concrete products businesses.
-
Gross profit margin was 21.4%, 140 basis points
higher than the prior year period. Included in the full year
results are warranty-related charges of $1.1 million and $9.4
million in 2015 and 2014, respectively related to concrete railroad
ties. Excluding the charges incurred in both years, gross
profit would have been 21.6% in both 2015 and 2014.
-
Selling and administrative expense increased by
$12.8 million, or 16.1%, due entirely to costs from businesses
recently acquired. Excluding the acquired businesses, selling
and administrative expense declined by 1.0% due principally to
reductions in incentive compensation expense.
-
Interest expense was $4.4 million in 2015
compared to $0.5 million in the comparable prior year period, the
increase being attributable to borrowings related to the recent
acquisitions.
-
Amortization expense increased by $7.6 million,
or 160.8%, compared to the prior year due to several acquisitions
transacted in 2014 and 2015.
-
In the third quarter of 2015, the Company
recognized a non-cash goodwill impairment charge of $80.3 million,
$69.9 million of which represented the full carrying value of
goodwill related to the IOS acquisition and the remaining $10.4
million related to the Chemtec acquisition.
-
Net loss was $44.4 million or $4.33 per diluted
share, compared to net income of $25.7 million, or $2.48 per
diluted share, last year. Excluding the impairment charge and
the gain on the sale of concrete tie manufacturing assets in 2015
as well as the warranty related costs in both 2015 and 2014, net
income would have been $18.7 million, or $1.81 per diluted share in
2015 compared to $31.3 million, or $3.02 per diluted share in
2014.
-
Adjusted EBITDA for 2015 was $59.0 million
compared to $60.3 million, a decrease of $1.3 million or 2.1%, due
to the operations of the Company's core business, partially offset
by contributions from recent acquisitions. Core business
results were negatively impacted by lower steel prices and volume
related deleveraging.
-
The Company's effective income tax rate from
continuing operations was 12.1%, compared to 34.3% in the prior
year period. The Company's effective income tax rate was
significantly impacted by the goodwill impairment charge, which
related to both tax deductible and nondeductible goodwill.
Excluding the impairment charge, the Company's effective tax rate
for the current year period would have been 34.7%.
-
Cash generated by operating activities in 2015
was $56.2 million compared to $66.7 million of cash provided in the
prior year. Capital expenditures were $14.9 million in 2015,
compared to $17.1 million in the prior year.
2016 Outlook
We expect global Rail segment sales
will be flat to down 5% in 2016. The North American Class One
railroads are projecting a 15% reduction in capital spending in
2016 as compared to 2015. The rail business must also
overcome approximately $15.0 million in sales to UPRR that will not
repeat in 2016. There is strength forecasted for the European
rail business as investment resumes in our primary markets in
2016.
Construction segment sales are anticipated to be
flat to up 5% in 2016. Our Construction segment is expecting
another good year for concrete buildings and fabricated bridge
products. Piling sales lagged in 2015 as a result of
declining steel prices. These circumstances are putting
pressure on non-sheet piling projects, and we anticipate this
environment continuing into 2016.
The Tubular and Energy Services segment primarily
participates in midstream and upstream sectors of the energy
markets. The volatility in the upstream sector has resulted
in most operators announcing deeper capital spending cuts to cope
with the lower than expected price of oil. Most industry
forecasts project the upstream market, where our test and
inspection services acquisition participates, will remain weak in
the first half and improve modestly in the second half.
Backlog at the beginning of 2016 was up nearly 150% over the
prior year in coated pipe services and precision measurement
systems which primarily serve the midstream market. As a
result, the Tubular and Energy Services segment, excluding the test
and inspection services acquisition, are forecast to drive 5% to
15% sales growth. Test and inspection services sales are
forecast to experience a 10% decline to a 10% increase, assuming no
further erosion in the price of gas and oil.
As a result, the consolidated sales forecast for
2016 is expected to be between $610.0 million to $640.0
million. We anticipate EBITDA to range from $48.0 million to
$52.0 million and diluted EPS is expected to be between $1.00 and
$1.40. We expect our working capital performance to be on par
with 2015 performance, and when combined with capital spending
reductions, will lead to another year of solid free cash flow
performance. Lastly, we are encouraged by the passage of the
Fixing America's Surface Transportation ("FAST") Act in December
2015 as it provides more certainty regarding transportation
funding, thereby allowing state and local governments to plan major
projects. This five year $305 billion legislation should
provide increased opportunities within the Rail and Construction
segments, however, the opportunities derived from FAST may not
present themselves until the second half of 2016 and beyond.
Q1 2016 Forecast
We anticipate the first quarter to be soft as our seasonally weak
first quarter will be more effected than the full year by the weak
upstream energy market that is negatively impacting our test and
inspection services acquisition. Sales for the first quarter
are forecast to be approximately $130.0 million. EBITDA is
expected to be approximately $7.0 million and EPS is forecast to be
a loss of between $0.05 and $0.10.
L.B. Foster Company will conduct a conference call
and webcast to discuss its fourth quarter 2015 operating results on
Tuesday, March 1, 2016 at 11:00 am ET. The call will be
hosted by Mr. Robert Bauer, President and Chief Executive
Officer. Listen via audio on the L.B. Foster web
site: www.lbfoster.com, by accessing the Investor Relations
page. The conference call can be accessed by dialing
888-713-4214 and providing access code 93383958#.
This release may contain
forward-looking statements that involve risks and uncertainties.
Statements that do not relate strictly to historical or current
facts are forward-looking. When we use the words "believe,"
"intend," "expect," "may," "should," "anticipate," "could,"
"estimate," "plan," "predict," "project," or their negatives, or
other similar expressions, the statements which include those words
are usually forward-looking statements. Actual results could differ
materially from the results anticipated in any forward-looking
statement. Accordingly, investors should not place undue
reliance on forward-looking statements as a prediction of actual
results. The Company has based these forward-looking statements on
current expectations and assumptions about future events. While the
Company considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory and other risks and
uncertainties, most of which are difficult to predict and many of
which are beyond the Company's control. The risks and uncertainties
that may affect the operations, performance and results of the
Company's business and forward-looking statements include, but are
not limited to, an economic slowdown or a continuation of the
current economic slowdown in the markets we serve; the risk of
doing business in international markets; our ability to effectuate
our strategy including evaluating potential opportunities such as
strategic acquisitions, joint ventures, and other initiatives, and
our ability to effectively integrate new businesses and realize
anticipated benefits; costs of and impacts associated with
shareholder activism; a decrease in freight or passenger rail
traffic; the timeliness and availability of material from our major
suppliers; labor disputes; the effective implementation of an
enterprise resource planning system; changes in current accounting
estimates and their ultimate outcomes; the adequacy of internal and
external sources of funds to meet financing needs; the Company's
ability to manage its working capital requirements and
indebtedness; domestic and international taxes; foreign currency
fluctuations; inflation; domestic and foreign government
regulations; continued and sustained declines in energy prices; a
lack of state or federal funding for new infrastructure projects;
increased regulation including conflict minerals; an increase in
manufacturing or material costs; the ultimate number of concrete
ties that will have to be replaced pursuant to the previously
disclosed product warranty claim of the Union Pacific Railroad
("UPRR") and an overall resolution of the related contract claims
as well as the possible costs associated with the outcome of the
lawsuit filed by the UPRR; risks inherent in litigation and those
matters set forth in Item 8, Footnote 20, "Commitments and
Contingent Liabilities" and in Item 1A, "Risk Factors" of the
Company's Form 10-K for the year ended December 31, 2014 as updated
by any subsequent Form 10-Qs. The Company urges all interested
parties to read these reports to gain a better understanding of the
many business and other risks that the Company faces. The
forward-looking statements contained in this press release are made
only as of the date hereof, and the Company assumes no obligation
and does not intend to update or revise these statements, whether
as a result of new information, future events or otherwise, except
as required by securities laws.
1 See
non-GAAP reconciliations below with respect to adjusted and other
non-GAAP measures
|
|
L.B.
FOSTER COMPANY AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS |
|
(In
thousands, except per share data) |
|
|
|
Three
Months Ended |
|
Twelve
Months Ended |
|
|
|
December
31, |
|
December
31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
Sales of goods |
$ |
|
119,990 |
|
$ |
|
151,746 |
|
$ |
|
537,214 |
|
$ |
|
561,899 |
|
|
Sales of services |
|
|
19,148 |
|
|
|
9,403 |
|
|
|
87,309 |
|
|
|
45,293 |
|
|
Total
sales |
|
|
139,138 |
|
|
|
161,149 |
|
|
|
624,523 |
|
|
|
607,192 |
|
|
Cost of goods
sold |
|
|
91,708 |
|
|
|
121,786 |
|
|
|
420,169 |
|
|
|
449,964 |
|
|
Cost of services
sold |
|
|
17,558 |
|
|
|
7,758 |
|
|
|
70,701 |
|
|
|
35,637 |
|
|
Total
cost of sales |
|
|
109,266 |
|
|
|
129,544 |
|
|
|
490,870 |
|
|
|
485,601 |
|
|
Gross profit |
|
|
29,872 |
|
|
|
31,605 |
|
|
|
133,653 |
|
|
|
121,591 |
|
|
Selling and
administrative expenses |
|
|
24,515 |
|
|
|
21,546 |
|
|
|
92,648 |
|
|
|
79,814 |
|
|
Amortization
expense |
|
|
3,295 |
|
|
|
1,191 |
|
|
|
12,245 |
|
|
|
4,695 |
|
|
Impairment of
goodwill |
|
|
- |
|
|
|
- |
|
|
|
80,337 |
|
|
|
- |
|
|
Interest expense |
|
|
1,212 |
|
|
|
137 |
|
|
|
4,378 |
|
|
|
512 |
|
|
Interest income |
|
|
(46 |
) |
|
|
(99 |
) |
|
|
(206 |
) |
|
|
(530 |
) |
|
Equity in loss
(income) of nonconsolidated investments |
|
|
101 |
|
|
|
(459 |
) |
|
|
413 |
|
|
|
(1,282 |
) |
|
Other income |
|
|
(4,340 |
) |
|
|
(363 |
) |
|
|
(5,585 |
) |
|
|
(678 |
) |
|
|
|
|
24,737 |
|
|
|
21,953 |
|
|
|
184,230 |
|
|
|
82,531 |
|
|
Income (loss) before
income taxes |
|
|
5,135 |
|
|
|
9,652 |
|
|
|
(50,577 |
) |
|
|
39,060 |
|
|
Income tax expense
(benefit) |
|
|
1,807 |
|
|
|
3,623 |
|
|
|
(6,132 |
) |
|
|
13,404 |
|
|
Net income (loss) |
$ |
|
3,328 |
|
$ |
|
6,029 |
|
$ |
|
(44,445 |
) |
$ |
|
25,656 |
|
|
Basic earnings (loss)
per common share |
$ |
|
0.33 |
|
$ |
|
0.59 |
|
$ |
|
(4.33 |
) |
$ |
|
2.51 |
|
|
Diluted earnings
(loss) per common share |
$ |
|
0.32 |
|
$ |
|
0.58 |
|
$ |
|
(4.33 |
) |
$ |
|
2.48 |
|
|
Dividends paid per
common share |
$ |
|
0.04 |
|
$ |
|
0.04 |
|
$ |
|
0.16 |
|
$ |
|
0.13 |
|
|
Average number of
common shares outstanding - Basic |
|
|
10,219 |
|
|
|
10,240 |
|
|
|
10,254 |
|
|
|
10,225 |
|
|
Average number of
common shares outstanding - Diluted |
|
|
10,270 |
|
|
|
10,341 |
|
|
|
10,254 |
|
|
|
10,332 |
|
|
|
|
|
|
|
|
|
|
|
|
L.B.
FOSTER COMPANY AND SUBSIDIARIES |
|
CONDENSED
CONSOLIDATED BALANCE SHEETS |
|
(In
thousands) |
|
|
|
December
31, |
|
December
31, |
|
|
|
|
2015 |
|
|
|
2014 |
|
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash
and cash equivalents |
$ |
|
33,312 |
|
$ |
|
52,024 |
|
|
Accounts receivable - net |
|
|
78,487 |
|
|
|
90,178 |
|
|
Inventories - net |
|
|
96,396 |
|
|
|
95,089 |
|
|
Prepaid income tax |
|
|
1,131 |
|
|
|
2,790 |
|
|
Other
current assets |
|
|
5,148 |
|
|
|
4,101 |
|
|
Total current assets |
|
|
214,474 |
|
|
|
244,182 |
|
|
Property, plant and equipment - net |
|
|
126,745 |
|
|
|
74,802 |
|
|
Other assets: |
|
|
|
|
|
Goodwill |
|
|
81,752 |
|
|
|
82,949 |
|
|
Other
intangibles - net |
|
|
134,927 |
|
|
|
82,134 |
|
|
Deferred tax assets |
|
|
226 |
|
|
|
93 |
|
|
Investments |
|
|
5,321 |
|
|
|
5,824 |
|
|
Other
assets |
|
|
3,215 |
|
|
|
1,733 |
|
|
Total Assets |
$ |
|
566,660 |
|
$ |
|
491,717 |
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
Accounts payable |
$ |
|
55,804 |
|
$ |
|
67,166 |
|
|
Deferred revenue |
|
|
6,934 |
|
|
|
8,034 |
|
|
Accrued payroll and employee benefits |
|
|
10,255 |
|
|
|
13,419 |
|
|
Accrued warranty |
|
|
8,755 |
|
|
|
11,500 |
|
|
Current maturities of long-term debt |
|
|
1,335 |
|
|
|
676 |
|
|
Other
accrued liabilities |
|
|
8,563 |
|
|
|
7,899 |
|
|
Total current liabilities |
|
|
91,646 |
|
|
|
108,694 |
|
|
Long-term debt |
|
|
167,419 |
|
|
|
25,752 |
|
|
Deferred tax liabilities |
|
|
8,926 |
|
|
|
7,618 |
|
|
Other
long-term liabilities |
|
|
15,837 |
|
|
|
13,765 |
|
|
Stockholders'
equity: |
|
|
|
|
|
Class
A Common Stock |
|
|
111 |
|
|
|
111 |
|
|
Paid-in capital |
|
|
46,681 |
|
|
|
48,115 |
|
|
Retained earnings |
|
|
276,571 |
|
|
|
322,672 |
|
|
Treasury stock |
|
|
(22,591 |
) |
|
|
(23,118 |
) |
|
Accumulated other comprehensive loss |
|
|
(17,940 |
) |
|
|
(11,892 |
) |
|
Total stockholders' equity |
|
|
282,832 |
|
|
|
335,888 |
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY |
$ |
|
566,660 |
|
$ |
|
491,717 |
|
|
|
|
|
|
|
|
|
|
|
|
This
earnings release contains certain non-GAAP financial
measures. These financial measures include gross profit
margins and earnings per share excluding certain non-recurring
charges as well as earnings before interest, taxes, depreciation,
and amortization (EBITDA) and adjusted EBITDA. The Company
believes that these non-GAAP measures are useful to investors in
order to provide a better understanding of the ongoing operations
of the Company's business. These supplemental financial measures
are useful to management and external users to assess the financial
performance of our business without consideration of the non-cash
goodwill impairment charge and certain concrete tie warranty
related items. The EBITDA and adjusted EBITDA measures are useful
in the assessment of the use of our assets without regard to
financing methods, capital structure, or historical cost basis.
EBITDA is also a financial measurement that is utilized in the
determination of certain compensation programs. Note that the
warranty charges incurred were associated with concrete ties
manufactured at the Company's Grand Island, NE facility which was
closed in 2011.
These non-GAAP financial measures are not a substitute for GAAP
financial results and should only be considered in conjunction with
the Company's financial information that is presented in accordance
with GAAP. Quantitative reconciliations of the GAAP measures
are presented below: |
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
December 31, |
|
December 31, |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
2015 |
|
|
|
2014 |
|
|
|
(in thousands except per share information) |
|
|
(Unaudited) |
|
(Unaudited) |
|
Net sales, as
reported |
$ |
139,138 |
|
|
$ |
161,149 |
|
|
$ |
624,523 |
|
|
$ |
607,192 |
|
|
Cost of sales, as
reported |
|
109,266 |
|
|
|
129,544 |
|
|
|
490,870 |
|
|
|
485,601 |
|
|
Gross
profit, as reported |
|
29,872 |
|
|
|
31,605 |
|
|
|
133,653 |
|
|
|
121,591 |
|
|
Product warranty
related charges, before income tax |
|
- |
|
|
|
4,766 |
|
|
|
1,092 |
|
|
|
9,374 |
|
|
Gross profit,
excluding certain charges |
$ |
29,872 |
|
|
$ |
36,371 |
|
|
$ |
134,745 |
|
|
$ |
130,965 |
|
|
Gross profit
percentage, as reported |
|
21.47 |
% |
|
|
19.61 |
% |
|
|
21.40 |
% |
|
|
20.03 |
% |
|
Gross
profit, as adjusted |
|
21.47 |
% |
|
|
22.57 |
% |
|
|
21.58 |
% |
|
|
21.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pre-tax income (loss), as reported |
$ |
5,135 |
|
|
$ |
9,652 |
|
|
$ |
(50,577 |
) |
|
$ |
39,060 |
|
|
Impairment of
goodwill, before income tax |
|
- |
|
|
|
- |
|
|
|
80,337 |
|
|
|
- |
|
|
Product warranty
related charges, before income tax |
|
- |
|
|
|
4,408 |
|
|
|
1,092 |
|
(a) |
|
8,672 |
|
|
Gain on Tucson, AZ
asset sale |
|
(2,279 |
) |
|
|
- |
|
|
|
(2,279 |
) |
|
|
- |
|
|
Pre-tax income, as adjusted |
$ |
2,856 |
|
|
$ |
14,060 |
|
|
$ |
28,573 |
|
|
$ |
47,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss), as reported |
$ |
3,328 |
|
|
$ |
6,029 |
|
|
$ |
(44,445 |
) |
|
$ |
25,656 |
|
|
Impairment of
goodwill, net of income tax |
|
- |
|
|
|
- |
|
|
|
63,887 |
|
|
|
- |
|
|
Product warranty
charges, net of income tax |
|
- |
|
|
|
2,804 |
|
|
|
713 |
|
(a) |
|
5,594 |
|
|
Gain on Tucson, AZ
asset sale, net of income taxes |
|
(1,424 |
) |
|
|
- |
|
|
|
(1,424 |
) |
|
|
- |
|
|
Net
income, as adjusted |
$ |
1,904 |
|
|
$ |
8,833 |
|
|
$ |
18,731 |
|
|
$ |
31,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss) per share, as
reported |
$ |
0.32 |
|
|
$ |
0.58 |
|
|
$ |
(4.33 |
) |
|
$ |
2.48 |
|
|
Diluted earnings per share, as adjusted |
$ |
0.19 |
|
|
$ |
0.85 |
|
|
$ |
1.81 |
|
|
$ |
3.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average number of
common shares outstanding - diluted, as reported |
|
10,270 |
|
|
|
10,341 |
|
|
|
10,254 |
|
(b) |
|
10,332 |
|
|
Average number of
common shares outstanding - diluted, excluding certain charges |
|
10,270 |
|
|
|
10,342 |
|
|
|
10,329 |
|
|
|
10,334 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) - Excludes second
quarter costs associated with warranty related legal and incentive
adjustments that are now reflected in the forecast and guidance
($102 gross and $67 net) |
|
|
|
|
|
|
|
|
(b) - Excludes
anti-dilutive shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Reconciliation |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
3,328 |
|
|
$ |
6,029 |
|
|
$ |
(44,445 |
) |
|
$ |
25,656 |
|
|
Interest expense
(income), net |
|
1,166 |
|
|
|
38 |
|
|
|
4,172 |
|
|
|
(18 |
) |
|
Income tax expense
(benefit) |
|
1,807 |
|
|
|
3,623 |
|
|
|
(6,132 |
) |
|
|
13,404 |
|
|
Depreciation |
|
3,836 |
|
|
|
2,139 |
|
|
|
14,429 |
|
|
|
7,882 |
|
|
Amortization |
|
3,295 |
|
|
|
1,191 |
|
|
|
12,245 |
|
|
|
4,695 |
|
|
Total
EBITDA |
|
13,432 |
|
|
|
13,020 |
|
|
|
(19,731 |
) |
|
|
51,619 |
|
|
|
|
|
|
|
|
|
|
|
Impairment of
goodwill |
|
- |
|
|
|
- |
|
|
|
80,337 |
|
|
|
- |
|
|
EBITDA adjusted for
impairment of goodwill |
|
13,432 |
|
|
|
13,020 |
|
|
|
60,606 |
|
|
|
51,619 |
|
|
Pre-tax warranty
related adjustments |
|
- |
|
|
|
4,408 |
|
|
|
683 |
|
(c) |
|
8,672 |
|
|
Gain on Tucson, AZ
asset sale |
|
(2,279 |
) |
|
|
- |
|
|
|
(2,279 |
) |
|
|
- |
|
|
Total adjusted
EBITDA |
$ |
11,153 |
|
|
$ |
17,428 |
|
|
$ |
59,010 |
|
|
$ |
60,291 |
|
|
|
|
|
|
|
|
|
|
|
(c) - Excludes second
quarter costs associated with pre-tax warranty related legal and
incentive adjustments of $102 that were reflected in current year
guidance. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
David Russo
Phone: 412.928.3417
Email: Investors@Lbfoster.com
Website: www.lbfoster.com
L.B. Foster Company
415 Holiday Drive
Pittsburgh, PA 15220
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: L.B. Foster Company via Globenewswire
HUG#1990566
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