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Dec 31, 2021
Foster Q4 2021 Earnings Report
L.B. Foster's financial performance decreased due to labor and raw material inflation, as well as supply chain, service partner, and lingering COVID-19 related disruptions.
Key Takeaways
L.B. Foster reported a decrease in net sales and gross profit for the fourth quarter of 2021 compared to the prior year quarter, primarily due to the sale of Piling in September 2021 and challenges in the midstream energy businesses. However, sales in Rail increased, and the company is optimistic about longer-term trends in its core end markets.
Net sales for Q4 2021 were $113.0 million, a 2.3% decrease from Q4 2020.
Gross profit for Q4 2021 was $19.0 million, a 12.2% decrease from the prior year quarter.
Net loss from continuing operations for Q4 2021 was $0.4 million, or $0.03 per diluted share.
Adjusted EBITDA from continuing operations for Q4 2021 was $3.2 million, a 53.2% decrease compared to the prior year quarter.
Foster
Foster
Forward Guidance
The Company is maintaining its optimistic outlook regarding the longer-term trends in its core end markets of freight and transit rail and general infrastructure.
Positive Outlook
- Many of its businesses will continue to directly benefit from infrastructure investment activity, including funding benefits from U.S. Infrastructure Investment and Jobs Act passed in November 2021.
- The Company believes that it has significant resources available to execute on organic and acquisitive growth opportunities in 2022 and beyond.
- Overall quotation activity and demand in these markets continues to improve
- robust backlog
- significant resources available to execute on organic and acquisitive growth opportunities in 2022 and beyond
Challenges Ahead
- Midstream energy markets and related pipeline investment projects remain at depressed levels and are expected to remain so for the foreseeable future.
- The present inflationary environment in labor and raw materials continues to pressure margins across the business
- Ongoing cost containment measures in the businesses serving these markets will be critical to minimizing further operating margin deterioration.
- ongoing disruptions in raw materials, labor, supply chains, service partner resources, and lingering COVID-19 related effects
- While such conditions and the related impacts are expected to improve in 2022, they could persist throughout 2022 and possibility longer