Date of Report (Date of earliest event reported)
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May 1, 2012
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L. B. Foster Company
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(Exact name of registrant as specified in its charter)
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Pennsylvania
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000-10436
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25-1324733
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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415 Holiday Drive, Pittsburgh, Pennsylvania
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15220
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(Address of principal executive offices)
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(Zip Code)
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Registrant’s telephone number, including area code
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(412) 928-3417
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(Former name or former address, if changed since last report.)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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L.B. FOSTER COMPANY
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(Registrant)
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Date: May 1, 2012
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By: /s/ David J. Russo
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David J. Russo
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Senior Vice President,
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Chief Financial and Accounting Officer and Treasurer
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Exhibit Number
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Description
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99.1
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Press Release dated May 1, 2012, of L. B. Foster Company.
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LBFoster | News Release |
·
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First quarter net income was $3.4 million or $0.33 per diluted share compared to $0.7 million or $0.07 per diluted share last year.
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·
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First quarter net sales of $118.5 increased by $1.4 million or 1.2% due to a 7.2% increase in Rail segment sales and a 61.7% increase in Tubular segment sales, partially offset by a 14.4% decline in Construction segment sales.
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·
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First quarter bookings were $175.5 million compared to $163.8 million last year, an increase of 7.1%. At the end of March 2012, our backlog was $201.7 million, 14.9% lower than March 2011.
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·
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Gross Profit margin was 19.3%, 440 basis points higher than the prior year, primarily as a result of increased margins across all three business segments as well as a $2.5 million expense incurred in last year’s comparable period related to the sale of inventory that was written up to fair market value as a result of the Portec acquisition.
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·
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Selling and administrative expense increased by $1.8 million or 11.7%, due principally to the costs related to concrete tie testing as well as increased salaries and benefits expenses.
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·
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Adjusted EBITDA (Earnings before interest, taxes, depreciation, amortization and other purchase accounting charges not considered amortization) increased 26.8% to $8.2 million compared to $6.5 million in the prior year quarter.
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·
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The Company’s income tax rate was 33.9% compared to 31.0% in the prior year.
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·
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Cash used in operating activities for the first quarter of 2012 was $2.4 million compared to $3.4 million in 2011.
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2012
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2011
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Variance
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Sales
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69,195
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64,573
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7.2%
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Gross Profit
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15,116
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10,521
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Gross Profit %
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21.8%
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16.3%
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2012
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2011
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Variance
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Sales
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40,035
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46,780
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(14.4%)
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Gross Profit
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5,506
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6,336
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Gross Profit %
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13.8%
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13.5%
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2012
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2011
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Variance
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Sales
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9,297
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5,751
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61.7%
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Gross Profit
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2,695
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1,174
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Gross Profit %
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29.0%
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20.4%
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Contact:
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David Russo
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Phone: 412.928.3417
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L.B. Foster
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Email: Investors@Lbfosterco.com
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415 Holiday Drive
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Website: www.lbfoster.com
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Pittsburgh, PA 15220
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L. B. FOSTER COMPANY AND SUBSIDIARIES | ||||||||
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
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(In Thousands, Except Per Share Amounts)
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Three Months Ended
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March 31,
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2012
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2011
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(Unaudited)
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NET SALES
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$ | 118,527 | $ | 117,104 | ||||
COSTS AND EXPENSES:
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Cost of goods sold
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95,662 | 99,638 | ||||||
Selling and administrative
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expenses
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17,533 | 15,696 | ||||||
Amortization expense
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704 | 704 | ||||||
Interest expense
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140 | 138 | ||||||
Income from joint venture
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(23 | ) | (87 | ) | ||||
Interest income
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(100 | ) | (56 | ) | ||||
Other (income)/expense
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(486 | ) | 87 | |||||
113,430 | 116,120 | |||||||
INCOME BEFORE INCOME TAXES
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5,097 | 984 | ||||||
INCOME TAX EXPENSE
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1,728 | 305 | ||||||
NET INCOME
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$ | 3,369 | $ | 679 | ||||
BASIC EARNINGS PER COMMON SHARE
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$ | 0.33 | $ | 0.07 | ||||
DILUTED EARNINGS PER COMMON SHARE
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$ | 0.33 | $ | 0.07 | ||||
AVERAGE NUMBER OF COMMON SHARES
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OUTSTANDING - BASIC
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10,090 | 10,285 | ||||||
AVERAGE NUMBER OF COMMON SHARES
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OUTSTANDING - DILUTED
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10,197 | 10,401 |
L. B. Foster Company and Subsidiaries | ||||||||
Condensed Consolidated Balance Sheets
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(In thousands)
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March 31,
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December 31,
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2012
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2011
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ASSETS
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(Unaudited)
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CURRENT ASSETS:
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Cash and cash items
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$ | 67,751 | $ | 73,727 | ||||
Accounts and notes receivable:
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Trade
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60,385 | 66,593 | ||||||
Other
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1,542 | 1,934 | ||||||
Inventories
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96,163 | 92,278 | ||||||
Prepaid income tax
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2,688 | 3,684 | ||||||
Other current assets
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2,994 | 1,777 | ||||||
Total Current Assets
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231,523 | 239,993 | ||||||
OTHER ASSETS:
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Property, plant & equipment-net
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48,326 | 48,118 | ||||||
Goodwill
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43,825 | 43,825 | ||||||
Other intangibles - net
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42,434 | 43,048 | ||||||
Investments
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3,518 | 3,495 | ||||||
Other non-current assets
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1,450 | 1,415 | ||||||
Total Other Assets
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139,553 | 139,901 | ||||||
$ | 371,076 | $ | 379,894 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES:
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Current maturities on other long-term debt
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$ | 1,030 | $ | 2,384 | ||||
Accounts payable-trade and other
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43,939 | 50,277 | ||||||
Deferred revenue
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5,181 | 6,833 | ||||||
Accrued payroll and employee benefits
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5,507 | 9,678 | ||||||
Current deferred tax liabilities
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782 | 759 | ||||||
Other accrued liabilities
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15,587 | 14,801 | ||||||
Total Current Liabilities
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72,026 | 84,732 | ||||||
OTHER LONG-TERM DEBT
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44 | 51 | ||||||
DEFERRED TAX LIABILITIES
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11,458 | 11,708 | ||||||
OTHER LONG-TERM LIABILITIES
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13,164 | 13,588 | ||||||
STOCKHOLDERS' EQUITY:
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Class A Common stock
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111 | 111 | ||||||
Paid-in capital
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46,100 | 47,349 | ||||||
Retained earnings
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258,264 | 255,152 | ||||||
Treasury stock
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(26,656 | ) | (28,169 | ) | ||||
Accumulated other comprehensive loss
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(3,435 | ) | (4,628 | ) | ||||
Total Stockholders' Equity
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274,384 | 269,815 | ||||||
$ | 371,076 | $ | 379,894 |
Three Months Ended March 31,
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2012 | 2011 | |||
(Unaudited) | ||||
Net income
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$3,369
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$679
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Income tax expense
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1,728
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305
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Interest, net
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40
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82
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Depreciation and amortization
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3,100
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2,939
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EBITDA, Non-GAAP
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8,237
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4,005
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Adjustments or charges
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Difference between net realizable value and cost basis of inventory sold due to purchase accounting step-up
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0
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2,493
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Adjusted EBITDA
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$8,237
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$6,498
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