L.B. FOSTER REPORTS FIRST QUARTER OPERATING RESULTS
PITTSBURGH, PA, May 9, 2019 – L.B. Foster Company (NASDAQ: FSTR), a leading manufacturer and distributor of products and services for transportation and energy infrastructure, today reported its first quarter 2019 operating results, which included the following performance highlights:
•Net income of $3.7 million, or $0.35 per diluted share, an increase of $0.53 per diluted share over the prior year quarter.
•Sales of $150.5 million, an increase of 22.9% over the prior year quarter.
•Gross profit of $29.2 million, an increase of 31.4% from the prior year quarter.
•New orders increased by 2.5% from the prior year quarter.
•Backlog ended at $250.1 million, an increase of 13.5% over the prior year quarter.
•Net cash used in operating activities for the quarter totaled $13.5 million.
•Debt increased by $15.2 million from December 31, 2018 to $90.2 million.
First Quarter Results
•First quarter net sales of $150.5 million increased by $28.0 million, or 22.9%, compared to the prior year quarter, which includes increases in each of our three business segments. Construction Products (Construction) sales increased 29.2%, Rail Products and Services (Rail) sales increased 21.8%, and Tubular and Energy Services (Tubular) sales increased 19.3% over the prior year quarter.
•First quarter gross profit of $29.2 million increased by $7.0 million, or 31.4%, over the prior year quarter. The increase was supported by growth in each of our three segments. Gross profit margin of 19.4% was 130 basis points higher compared to the prior year quarter. The gross profit margin was favorably impacted by a 510 and 90 basis point improvement within our Tubular and Construction segments, respectively.
•First quarter new orders were $180.3 million, a 2.5% increase from the prior year quarter, driven primarily by strong activity within the Tubular segment and, to a lesser extent, our Rail segment. New orders were $692.6 million for the trailing twelve months ended March 31, 2019, an increase of 22.5% from the prior twelve months ended March 31, 2018.
•Backlog was $250.1 million at March 31, 2019, a 13.5% increase from the prior year. Construction backlog increased $15.3 million, or 17.8%, while Rail backlog increased $16.6 million, or 15.8%. The increases were partially offset by a $2.1 million, or 7.0%, reduction in Tubular backlog.
•Net income for the first quarter 2019 was $3.7 million, or $0.35 per diluted share, compared to a net loss of $1.9 million, or $0.18 loss per diluted share, in the prior year quarter.
•First quarter EBITDA1 (earnings before interest, taxes, depreciation, and amortization) was $10.2 million, an increase of 92.4% compared to the prior year quarter.
•Selling and administrative expenses in the first quarter increased by $1.5 million, or 7.1%, over the prior year period, largely driven by increased personnel-related expenses. Selling and administrative expenses as a percent of net sales were reduced by 210 basis points from the prior year quarter to 14.6%.
1 See "Non-GAAP Disclosures" at the end of this press release for information regarding the following non-GAAP measures used in this release: EBITDA.
The following information was filed by Foster L B Co (FSTR) on Thursday, May 9, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.