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LBFoster Investor Relations L.B. Foster Reports Third Quarter Operating Results November 2 , 2021 PITTSBURGH , Nov. 02 , 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 third quarter operating results , which included the following performance highlights : • Net sales for the 2021 third quarter were $ 130.1 million , an $ 11.7 million increase , or 9.9 % , over the third quarter of 2020 . • Gross profit for the 2021 third quarter was $ 22.3 million , a $ 0.2 million improvement , or 1.0 % , from the prior year quarter . The 2021 third quarter gross profit margin was 17.1 % versus 18.6 % in last year's comparable quarter . • Selling and administrative expenses for the 2021 third quarter were $ 20.1 million , a $ 3.0 million increase , or 17.5 % , over the prior year quarter . Selling and administrative expenses as a percent of net sales increased to 15.4 % compared to 14.4 % last year . • Net income from continuing operations for the 2021 third quarter was $ 2.3 million , or $ 0.21 per diluted share , a decrease of $ 1.35 per diluted share from the prior year quarter . Adjusted net income from continuing operations 1 was $ 0.2 million , or $ 0.02 per diluted share , compared to adjusted net income of $ 1.0 million , or $ 0.09 per diluted share , for the prior year quarter . Adjusted net income from continuing operations 1 for the 2021 third quarter of 2021 excludes a net gain on the sale of the Company's Piling Products ( " Piling " ) business of $ 2.0 million . Adjusted net income from continuing operations¹ for 2020 third quarter excludes restructuring charges of $ 0.2 million and a non - recurring income tax benefit of $ 15.8 million resulting from the divestiture of the IOS Test and Inspection Services business . • Adjusted EBITDA from continuing operations 1 for the 2021 third quarter was $ 4.4 million , a $ 3.0 million decrease versus the prior year comparable quarter . Adjusted EBITDA from continuing operations for the quarter excludes a $ 2.7 million pre - tax gain on the sale of the Piling business . • Net operating cash flow used in the third quarter totaled $ 13.7 million , a $ 21.7 million decrease compared to the prior year quarter . • Net debt¹ as of September 30 , 2021 was $ 26.0 million , an $ 11.4 million decrease from December 31 , 2020. The Company's adjusted net leverage ratio¹ was 1.2x as of September 30 , 2021 . • Backlog , as adjusted for the divestiture of the Piling business , increased by $ 20.4 million , or 9.8 % , compared to the prior year quarter , driven by a $ 19.7 million increase in Infrastructure Solutions backlog . New orders totaling $ 125.6 million for the 2021 third quarter increased 18.5 % over the prior year quarter and 10.7 % sequentially , both adjusted for the Piling divestiture . 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 : adjusted net income , adjusted diluted earnings per share , EBITDA , adjusted EBITDA , net debt , adjusted net leverage ratio , free cash flow . CEO Comments John Kasel , President and Chief Executive Officer , commented , " Third quarter revenues increased substantially year over year , driven by the strength in our rail , precast concrete products , and fabricated steel business lines . These results , coupled with significant growth in backlog and new orders versus the third quarter of 2020 as well as sequentially , positions us well for continued growth in the coming quarters . Like many industrial companies , we were impacted by raw material , labor , supply chain , service partner , and lingering covid - related disruptions during the quarter which adversely impacted our ability to execute on our order book . In addition , margins year over year continue to reflect the adverse impact in our Infrastructure Solutions segment related to weakness in the midstream energy market . Despite these challenges , overall margins improved slightly on a sequential basis due to improved business mix and our cost mitigation efforts . Orders booked in the third quarter were up both year over year and sequentially , and we continue to build momentum heading into 2022 , with the potential for additional tailwinds from the pending infrastructure bill from the U.S. Federal government . " Mr. Kasel added , " We believe the work accomplished during the quarter has laid the groundwork for driving growth over the next several years . We completed our comprehensive strategy reassessment , which established our playbook for transforming the Company's performance going forward . We also accomplished one of the key objectives in our strategic plan by divesting the Piling business , which generated a significant amount of capital that we believe can be redeployed to businesses with a stronger competitive position in more attractive and growing markets in order to create more value for our shareholders . This transaction was a meaningful step as we continue to improve our balance sheet . Coupled with completing the