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LBFoster Investor Relations L.B. Foster Reports Second Quarter Operating Results August 3 , 2021 PITTSBURGH , Aug. 03 , 2021 ( GLOBE NEWSWIRE ) -- L.B. Foster Company ( NASDAQ : FSTR ) , a leading provider of products and services for the rail industry and solutions to support critical infrastructure projects , today reported its 2021 second quarter operating results , which included the following performance highlights : • Net sales for the 2021 second quarter were $ 154.5 million , a $ 38.4 million sequential increase , or 33.1 % , over the first quarter , and a $ 13.0 million increase , or 9.2 % , year - over - year . • Gross profit for the 2021 second quarter was $ 26.2 million , a $ 7.3 million sequential improvement , or 38.9 % , over the first quarter . This year's second quarter gross profit declined $ 2.0 million , or 7.0 % , from the prior year quarter . The 2021 second quarter gross profit margin was 16.9 % versus 19.9 % in last year's comparable quarter . • Selling and administrative expenses for the 2021 second quarter were $ 19.8 million , a $ 1.7 million increase , or 9.7 % , from the first quarter of 2021. This was also a $ 0.9 million increase , or 4.8 % , over the prior year quarter . Selling and administrative expenses as a percent of net sales decreased to 12.8 % compared to 13.3 % last year . • Net income from continuing operations for the 2021 second quarter was $ 2.9 million , or $ 0.27 per diluted share , an increase of $ 0.39 per diluted share from the first quarter and a decrease of $ 0.39 per diluted share from the prior year quarter . • Adjusted EBITDA from continuing operations¹ for the 2021 second quarter was $ 8.3 million , a $ 5.6 million sequential increase compared to this year's first quarter and a $ 4.6 million decrease versus the prior year comparable quarter . • Net operating cash flow used in the second quarter totaled $ 0.8 million , a decrease of $ 13.8 million from the prior year quarter . • Net debt¹ as of June 30 , 2021 was $ 33.1 million , a $ 4.4 million decrease from December 31 , 2020. Over the last four quarters , the Company reduced its net debt¹ by $ 15.1 million . The Company's adjusted net leverage ratio¹ was 1.3x as of June 30 , 2021 and 2020 . • Backlog increased by 12.4 % to $ 253.2 million compared to the prior year quarter , driven by the significant increase in the Infrastructure Solutions segment of $ 31.6 million . New orders for the second quarter of 2021 were $ 138.6 million , an increase of 3.5 % from the prior year quarter . 1 See " Non - GAAP Disclosures " at the end of this press release for information regarding the following non - GAAP measures from continuing operations used in this release : EBITDA , adjusted EBITDA , net debt , adjusted net leverage ratio , free cash flow , adjusted net income , and adjusted earnings per diluted share . CEO Comments John Kasel , President and Chief Executive Officer , commented , " As expected , second quarter revenues increased substantially both sequentially and year over year , driven by the strength in the rail , precast concrete products and fabricated steel markets reflecting the continuing dissipation of the effects of the pandemic on our results . " Second quarter orders were $ 139 million , an improvement over both our first quarter this year and last year's second quarter , and our $ 253 million backlog remains healthy . We are seeing an increasing level of project activity in the majority of our served markets . We believe this activity , coupled with the backdrop of government support for infrastructure investment , positions us well to build on the momentum established in the second quarter as we enter the second half of 2021. " Mr. Kasel added , " Our profitability metrics in the second quarter improved sequentially , driven primarily by the higher sales volumes and cost containment measures supporting operating leverage . Year - over - year operating margins continue to be adversely affected by weakness in the midstream energy markets resulting in lower sales volumes in our Coatings and Measurement business unit . We anticipate that headwind will continue at least through the end of 2021. We are also monitoring elevated commodity prices and taking steps to minimize their effect on margins . " Mr. Kasel concluded , “ Our effective management of working capital resulted in $ 33 million of net debt at quarter end , up slightly during the quarter despite the substantial sequential increase in sales this quarter . We will maintain our disciplined approach in our working capital deployment in order to continue to drive the cash flow generation and balance sheet strength that has favorably positioned us to capitalize on business opportunities as