L.B. Foster Company (NASDAQ: FSTR), a global technology solutions
provider of products and services for the rail and infrastructure
markets (the "Company"), today announced that its CXT, Incorporated
subsidiary has completed the sale of substantially all the
operating assets of its prestressed concrete railroad tie business
located in Spokane, WA to voestalpine Railway Systems Nortrak, LLC
(“Nortrak”). The Company is retaining all pre-closing
accounts receivable and liabilities associated with the business,
while the asset sale to Nortrak includes all owned inventory
associated with the line of business, as well as the related fixed
assets. Total cash proceeds from the transaction are expected to be
approximately $3 million, subject to customary working capital
adjustments. Revenues from the divested business, which was part of
the Company’s Rail, Technologies, and Services segment, totaled
approximately $9 million for the trailing-twelve-months ended June
30, 2023.
Impact to 2023 Financial
GuidanceThe completed transaction did not have a material
impact on the Company’s financial guidance for its fiscal year
ending December 31, 2023. As previously reported, the Company
expects net sales for 2023 to range between $520 million to $550
million, with adjusted EBITDA expected between $27 million and $31
million.
About L.B. Foster Company
Founded in 1902, L.B. Foster Company is a global
solutions provider of engineered, manufactured products and
services that builds and supports infrastructure. The Company’s
innovative engineering and product development solutions address
the safety, reliability, and performance needs of its customer's
most challenging requirements. The Company maintains locations in
North America, South America, Europe, and Asia. For more
information, please visit www.lbfoster.com.
Forward-Looking Statements
This release may contain forward-looking
statements within the meaning of Section 21E of the Securities and
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Forward-looking statements include any
statement that does not directly relate to any historical or
current fact. Sentences containing words such as “believe,”
“intend,” “plan,” “may,” “expect,” “should,” “could,” “anticipate,”
“estimate,” “predict,” “project,” or their negatives, or other
similar expressions of a future or forward-looking nature generally
should be considered forward-looking statements. Forward-looking
statements in this release are based on management's current
expectations and assumptions about future events that involve
inherent risks and uncertainties and may concern, among other
things, L.B. Foster Company’s (the “Company’s”) expectations
relating to our strategy, goals, projections, and plans regarding
our financial position, liquidity, capital resources, and results
of operations and decisions regarding our strategic growth
initiatives, market position, and product development. 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 Company cautions
readers that various factors could cause the actual results of the
Company to differ materially from those indicated by
forward-looking statements. Accordingly, investors should not place
undue reliance on forward-looking statements as a prediction of
actual results. Among the factors that could cause the actual
results to differ materially from those indicated in the
forward-looking statements are risks and uncertainties related to:
the COVID-19 pandemic, and any future global health crises, and the
related social, regulatory, and economic impacts and the response
thereto by the Company, our employees, our customers, and national,
state, or local governments; volatility in the prices of oil and
natural gas and the related impact on the midstream energy markets,
which could result in cost mitigation actions, including shutdowns
or furlough periods; a continuation or worsening of the adverse
economic conditions in the markets we serve, including recession,
whether as a result of the COVID-19 pandemic or otherwise,
including its impact on labor markets and supply chains,
macroeconomic factors, including the impact of inflation and
pricing pressures, travel and demand for oil and gas, the continued
volatility in the prices for oil and gas, governmental travel
restrictions, project delays, and budget shortfalls, or otherwise;
volatility in the global capital markets, including interest rate
fluctuations, which could adversely affect our ability to access
the capital markets on terms that are favorable to us; restrictions
on our ability to draw on our credit agreement, including as a
result of any future inability to comply with restrictive covenants
contained therein; a continuing decrease in freight or transit rail
traffic, including as a result of the ongoing COVID-19 pandemic,
strikes, or labor stoppages; environmental matters, including any
costs associated with any remediation and monitoring of such
matters; the risk of doing business in international markets,
including compliance with anti-corruption and bribery laws, foreign
currency fluctuations, and trade restrictions or embargoes; our
ability to effectuate our strategy, including cost reduction
initiatives, and our ability to effectively integrate acquired
businesses or to divest businesses, such as the recent dispositions
of the Chemtec, Track Components, Piling, and IOS Test and
Inspection businesses, and acquisitions of the Skratch Enterprises
Ltd., Intelligent Video Ltd., and VanHooseCo Precast LLC businesses
and to realize anticipated benefits; costs of and impacts
associated with shareholder activism; continued customer
restrictions regarding the on-site presence of third party
providers due to the COVID-19 pandemic; the timeliness and
availability of materials from our major suppliers, including any
continuation or worsening of the disruptions in the supply chain
experienced as a result of the COVID-19 pandemic, as well as the
impact on our access to supplies of customer preferences as to the
origin of such supplies, such as customers’ concerns about conflict
minerals; labor disputes; cyber-security risks such as data
security breaches, malware, ransomware, “hacking,” and identity
theft, which could disrupt our business and may result in misuse or
misappropriation of confidential or proprietary information, and
could result in the disruption or damage to our systems, increased
costs and losses, or an adverse effect to our reputation; the
continuing effectiveness of our ongoing 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, including our
ability to negotiate any additional necessary amendments to our
credit agreement or the terms of any new credit agreement, and
reforms regarding the use of SOFR as a benchmark for establishing
applicable interest rates; the Company’s ability to manage its
working capital requirements and indebtedness; domestic and
international taxes, including estimates that may impact taxes;
domestic and foreign government regulations, including tariffs;
economic conditions and regulatory changes caused by the United
Kingdom’s exit from the European Union; geopolitical conditions,
including the conflict in Ukraine; a lack of state or federal
funding for new infrastructure projects; an increase in
manufacturing or material costs; the loss of future revenues from
current customers; and risks inherent in litigation and the outcome
of litigation and product warranty claims. Should one or more of
these risks or uncertainties materialize or should the assumptions
underlying the forward-looking statements prove incorrect, actual
outcomes could vary materially from those indicated. Significant
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, those
set forth under Item 1A, “Risk Factors,” and elsewhere in our
Annual Report on Form 10-K for the year ended December 31,
2022, or as updated and amended by our other periodic filings with
the Securities and Exchange Commission.
The forward-looking statements in this release
are made as of the date of this release and we assume no obligation
to update or revise any forward-looking statement, whether as a
result of new information, future developments, or otherwise,
except as required by the federal securities laws.
Investor Relations:Stephanie
Listwak(412) 928-3417investors@lbfoster.com
L.B. Foster Company415 Holiday DriveSuite
100Pittsburgh, PA 15220
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