FSTR - Earnings call transcript Q4 2018

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Operator

Greetings, and welcome to the L.B. Foster's Fourth Quarter 2018 Results Conference Call. At this time, all participants are in listen-only mode. A question-and-answer session will follow the formal presentation [Operator Instructions]. Please note this conference is being recorded. to Manager. conference like Balog, to, now Relations Investor would turn over the Judy I you begin. you, Thank may

Judy Balog

Thank Mr. you. conference Good year Balog, for the joining morning, fourth XXXX ladies and for company's name Foster gentlemen. operating Foster's the I'm L.B. results. is of Also Company's is and earnings Robert and L.B. Bauer, Manager the Mr. and on quarter Hosting CEO. call My review L.B. Foster. and us L.B. to full Relations James call Treasurer. is, Foster's CFO Investor Thank today the Judy Maloney, you President call

In discuss under our the business release, the week. quarter UP settlement market company’s fourth was fourth This Afterwards, who a Website tab addition fourth Bob then Relation's an access. to those review that for provide we issues presentation have significant Investor have and our will Jim will update press review company's Bob on will last on online and quarter quarter the results. financial announced developments. performance morning,

will for questions. session then open We the

capital additional cash your margins, our company's as for number to items as markets, Annual by and for items businesses issues revisions responses on such and that L.B. our today. All release make These subsequent could contain with and expenditures updated by through a outlook except XXXX, ended projections. publicly business may for key the metrics, During participants XX, revise to today's Exchange of and as XX-K statements, call, as laws. the encouraged and any Commission to forward-looking required regarding may year These costs, uncertainties affect commentary of information from statements the undertake risk results. these Securities of our date operating to statements are other new questions and no our we light we including presentation, to flows, forward-looking only of Foster's filed that differ results information, opinions and risks of involve this cause or reflect obligation statements materially the December actual factors securities refer Report in Form the results statements

United non-GAAP provided to commentary they results. financial Statements adjusted presentation meaningful addition to adjusted measures not has the EBITDA the results. other accordance measures. of results measures to statements company Accounting GAAP, are facilitate EBITDA the and to reconciliation present while our believes with with within loss X-K our and forecasted in and filings. non-GAAP Generally results, operating EBITDA includes Principles, Accepted in the are past, company's States A that accordance non-GAAP comparison to non-GAAP for of net And been investors provides intended included considered adjusted In the the information referring of additional presentation other replace these of

Pacific XXXX, adjusted and Additionally, the EBITDA measures, are share. non-GAAP Concrete adjustments per which of per In include earnings loss adjusted net diluted Union made to settlement net EBITDA, income impact adjustments Railroad reported share GAAP and and the exclude earnings the to certain company adjusted expense.

the non-GAAP earnings accompanying corresponding measures presentation reconciles to these measure. Our GAAP

Before I to an change. method make proceeding, on an important accounting have announcement

has average the presented release. method commence of we presentation company With accounting. and inventory accounting XXXX, information Bob. in period apply of Quantitative to discussion. And from it certain over press our the will retrospectively All the the are adjusted the to I prior within method During United first-out method. for periods that, changed included adjustments new our will earnings reconciliation been turn cost to the our of method last-in quarter financial its fourth in the of States prior

Robert Bauer

Thank you, Judy.

to L. with recent Nebraska warranty announcement get XXXX. have Union the reached results, entitled history Pacific tiles concrete million the in could parties I of mentioned B. identified agreement XXXX Last furnishing litigation was settlement on March concrete entered the shorten we B. for of will the The Union claimed begins in for conditions, Railroad. defective largely they discussing the full claims related and to the ties. ties quarter begin Judy in timeframe. the fourth filed years replacement with facility. Grand XXXX the Thursday, that related As before manufacturing create to which failing The address company a brief year to resolution facility XXXX period, of to and of warranty XXth, or managing Island, behind claimed we the XXXX, announced process Union litigation identify X.X eligible cracking XXXX ties Foster Pacific that an XXXX Grand the Pacific into life lawsuit ties replacement it ties of from approximately between manufactured to In Union L. with for and our and Pacific Island, at Nebraska prematurely. around produced Foster replacement our

damages. cost it of asserted has been and and submitted a to the defect were Union that Foster agreement, eligible, to and alleging was following defenses disputed the and ties for This warranty Pacific by complaint in claimed a followed claims for saw of ties was also public damages. Pacific ties denied Foster the become value the provided warranty claims As this that matter damages number warranty ties ties manufacturing filed replacement. L. Union several had in wrongful unfulfilled liability, all cracking were workmanship this of XXXX, but ties counterclaims other L.B. B. or Pacific's Union And replacement record. and asserted of conduct due eligible would for for

release agreement. to has the on material Pacific years. XXXX. settlement over the services and million company Form years following. installments, week, of to from six agreements. next services, concrete interest million Foster pricing as a over of again such certain Union annually. $X claims once L.B. which approved for relating in the over all remain Turning Pacific of $X million and L.B. million product is course March six all of last Specific terms $XX ties XXth, will Payment warranty sold obligations announced year with the $XX agreement agreement the aggregate agreement of to includes settlement by agreed made purchase We Union on terms our to confidential pay as to of Union the amount of and agreed and the six Railroad. also now Pacific terms The all This include in the sale products mutual an to X-K, is we Railroad annually without million in Foster was the the after and services. that or case customer period, the beginning names, followed installments agreement, has products the $X Pacific an approximately supplier signing be means same purchase of of will Union that

positive that a companies, in the since the it company As to and Board resolution of is always and looks is want claims this restoration the type very I of the our best and a the Directors and commercial future Foster business emphasize particularly of when it to trial. a team entire conducting the forward published announcement, the agreement at commercial can costs, that And with finally, this our includes risk Directors the of Pacific litigation shareholders, resolves once regarding matter unfavorable Union believe again. restoring possible between and concrete long-term eliminate the all associated L.B. our in ties relationship, uncertainty of interest two Board include I mentioned relationship with to of management outcome past settlement

reporting So, and now XXXX. highlights his comments the the impact the fourth will I and will turn full quarter. the He discussing call for of results of quarter to over and the some will And return I financial Jim the Maloney. discuss then year Jim? proceed with the following

James Maloney

you, financial a with X-K filed The has Thank Pacific. with impact settlements the along highlighting XXth, a press Union March Bob. of the release company on Form

settlement full week, to results and results determined negotiations the XXXX. settlement last progressed as year-end, that possible year agreement in an As report company we and comply as full Based events XXXX reaching subsequent the requirements quarter the were a of quarter for on year should impact to our fourth allowing if we reached. for with conclusion much monitored the progress reporting after for fourth reporting time

are taken establish the payments $XX has Form today, exhibits other results will charge through operating reflecting company among settlement XXXX liability in non-cash our existing details, We to furnish cash The for the with XX-K filing into and million million XXXX. fourth that consideration reserve million future $XX charge. XXXX taking in without the quarter, $X

point For the purpose on the impact, helping I comments our where the today excluding those many charge will performance, of underlying the an non-cash will you has based understand out. be charge results, business of

Tubular results, fourth adjusted were result, I of charge. Net begin EBITDA basis, quarter, to On my include often which $XX not million increase $XX will prior refer to increase quarter improvement XX.X% million was Rail Services other will and million The XX.X% increasing our our the $XXX rail that for or sales As do or American million $XX improvement the in an to XXXX an three all XX.X%. by of Energy was North by Rail segment, segments, and by or fourth in segment, across due by increase Products and our segment increasing quarter Services million sales sales led XX.X% XX.X% Products led year XX.X%. the compared I adjusted remarks. businesses. $XXX Construction a The

our a saw by XX% European products. transit, offset Allegheny supported The was sales our increases were distribution by businesses increase rail reductions partially within primarily increase Rail led Our rail These XX.X% of products and technology by operations. Canadian divisions.

by from Our the improved prior construction $X sales XX.X%. year fourth quarter million segment or

growth declined which well sales, year was increase our in offset concrete sales quarter improvements of product drove products our XX.X% coatings protective was The Tubular our operations, our XX.X% the XXXX The inspection driven business, The in bridge was increase piling million quarter. by offset our over fabricated Our unable megaproject the or and by at Energy and reductions precision as during increase test was as prior in midstream precast with to partially which by measurement partially business. upstream growth products. $X the fourth both a an secure period.

of XX% XX.X%. fourth construction accounted Tubular and and sales, percentage XX.X%, quarter a As was was XXXX Rail for Energy

Now increase looking $XX gross a was million Consolidated $X construction X.X% $X or a gross $X by from million profit. a Rail year growth the offset XXXX This million at prior by was quarter was over of provided profit. in profit. million, reduction gross gross partially quarter. The profit our increase fourth

the a XXXX segment rail Rail gross points prior profit margin volumes related operations. fourth year. fourth gross basis was consolidated in decrease gross year Rail quarter. a a These of of profit Construction increase point and profit Our the The margin. both XXX XXX XX.X%, in increase due basis had products gross of basis basis offset from our decline of points of improvements Tubular when margin million declines quarter in technologies our increase was primarily which margin. points to was a XX.X% offset by reported supported division, profit basis were profit a was decline within by reduction XXX X% profit XXX $X prior to gross North the compared increased quarter XXX partially gross partially that to was rail increase The by American points and

by Our profit gross by was XX.X% XXX to construction suppressed points $X of due concrete reduction primarily precast quarter. segment our reduced fabricated The compared precast partially XX.X%. driven to piling respectively. which and increased prior million volumes by Fourth fabricated or margin reductions segment by products and bridge our quarter divisions, reported which and bridge quarter basis XX.X% our products, year-over-year within products profit concrete offset products. This fourth XX.X% by decreased gross was year was

consolidated increase related and personnel $X.X or at Looking to an our administrative expenses. in $XXX,XXX quarter and the million $XX.X to reserves selling insurance million increased increasing expenses, X.X% fourth our $X million due expenses by in

of to sales cost As a points expense programs, fourth decreased effectiveness Amortization Management and our decreased quarter. reductions to principally company's $X.XX year was diluted per selling loss the sales, outstanding $XX prior our of XXXX XXX XX.X% due fourth administrative to expense XXXX, share quarter or last or continued volumes to in remain $XX,XXX interest expense quarter while The $XXX,XXX compared income $X.X share tax to $X.XX Fourth loss $XX was million million. compared of containment pleased as Net fourth basis our million diluted quarter. of from net expense by was per flat increase. in year. the income pretax on XX.X% percentage with for debt. a

taxes, per compared Our last adjusted settlement $X totaled of the depreciation income adjusted the in before and net $X.XX $XX.X concrete fourth quarter. the for settlement the excludes million XXXX, to adjusted diluted $XX.X million quarter concrete quarter Earnings fourth amortization XXXX which interest, ties or share. expense, year's fourth million type or EBITDA was in in

sheet balance increased fourth This quarter of compared quarter move quarter. XXXX. the as $X needed by XX, and was Accounts primarily $XX in the debt the September working capital activity in into increase XX, flat are third as XX, million in the we were cash December and revenue On compared current to to related was XXXX. flat XXXX net driven support backlog as days million order inventory our of compared million side, inventory levels higher was by receivable December by fourth $X quarter, and to increased XX of the deferred XXXX. Accounts fourth which to payable and DSO when

grew management results the year sales continue good inventory which about during We feel in and receivable XX.X%. accounts to

continue into XXXX. we capital focus to working on activities move will We our as management

For to rate The total lowest on in outstanding XXXX, the million. of XXXX. pricing fourth company interest debt our tier during $XX maintain the quarter our have by reduced we spreads continued grid

compliance facility our facility. credit are and are credit amendment our to We currently an negotiating with we

facility expires in Our current XXXX. March

activities. to moving cash our Now, flow

provided the cash quarter to quarter. compared operating was million XXXX million year $X fourth activities provided the Our in prior $XX by in

capital $XX from compared year full activities XXXX dollars expenditures compared Fourth $X year. $XX to refunds XXXX, in the range the cash were tax in $XX million. the anticipate to federal million and XXXX million quarter income to receipt expenditures operating $XX We million million For of from between flow XXXX, year. in our $X which prior included prior the capital $XXX,XXX provided million

Our expenditures opportunities programs to new continue that at and operational business efficiencies. will capital on focus are targeted improving developing

Let’s new orders our look activity backlog at and next.

during XX.X%. offerings. of segment fourth and our year, fourth We the operations. Rail and in orders and XX.X% levels million, year's full were new orders three increased this full by the orders a for strong with both telling segments. result last year the Total conditions activity our of believe was our sign North customer Our compared increased year record company. of an at Fourth pleased the to were XX.X% year strengthened prior were is quarter quarter XXXX supported European confidence each very The year increase for increase to the $XXX a new new it quarter quarter market and products American orders compared for were from

of to commodity are those encouraged to the markets pleased with the improved as our freight American we to We serve. intermodal year-over-year. segment continue have North within units rail and rail and both growth traffic see current we contributed continued Global we be by projects also the carloads the market within as state transit expansion

new For compared the orders the XXXX, rail to year segment prior full increased the year. XX.X%

The during and was were over test business order the fourth provided coatings inspection the lines the by our of segment activity XX.X% Increased by During quarter. quarter, orders protective within service year tubular segment and business significant units. most each our improved the quarter. reported increases prior

XXXX, of to year year increases by orders the the the increased by year. new fourth in business XX.X% segment prior to units. with prior compared our full were compared tubular new Construction the quarter orders For each down segment's XX.X%

XX.X% and piling increased concrete new fabricated XX.X%. this our precast Partially the prior businesses, which were orders to in respectively XX.X% decline Our in offsetting bridge year. in orders increases decline compared

December or the $XXX $XX segment the prior orders Backlog XX.X% at new Rail, as prior increase year a up of XX.X% end to XX.X% to tubular. During year. fourth XX, the quarter, each a of of and in three full the in XXXX compared X% increase XXXX XXXX, year the from in backlog segments within compared $XXX increase stood XX.X% increased construction million increased of with our the at million Backlog million.

well working With back over which to concludes we turn flow. December I XXXX, level focus our During Bob. XXXX. profitability, the quarter ending my it XX, In our and increasing backlog, of cash as will attained comments free a on on as closing, That balance. increased maximizing sales to fourth and now record continued remains capital contributed XXXX that,

Robert Bauer

I'm the I business mix going both Thanks, quarter full go through climate year as comments well fourth performance discussion. operating my handle Jim. as to as together my discussion, and

settlement trend the Our encouraging orders the very without growth results in followed reported fourth in and as from quarters. our prior were quarter the three strength sales the

approximately Fourth rail that segment, the XX% strong. and up year-end Our up new backlog rail quarter in the XX%. growth driven capitals new basis, to quarter full-year which increased by XX%. freight Keep increasing up was segment prices order and activity areas. increase XX% services sales forward. rail which a quarter increases incredibly year helped Sales underground growth, year On segment the related infrastructure full solely to prior in Transit orders full input division. the attributed of projects growth move fourth not this to input with from exceeded quarter a from had favorable rising That's over typically was the is the strong The this benefit year remain $XXX sales as our do XXX% continued all equivalent in and mind in to segment, to growth II and year, very operators. at continues freight in new XX%. Europe our continue finishing X% of U.S. throughout year. serving in our rail million, and did impact businesses. London sales was fourth came us strong volume for $XX other of XX% distribution is in Price business which orders Included the signal decline fourth grow. ended both projects of with a majority new million division over increase that time our The our to sales is to as backlog as increases do they across rail rail same market and order in-price price. prior was costs rail Class costs the the rising year on finished transit to construction price our strong the are offset line which rising spending sales, investments the bottom from fall however We year

rail the responsible cities segment, signifying solid division for was annual very move place-to-place. transit in a sales European more improvement. infrastructure to the expansion the year. $XX many orders rail down midway Global track for construction and of first products used used XX% performance as people Our accelerated solid as the rail it the orders X% need The for growth for a again first half double-digit coming deal with the of was million second half Overall, technologies sales At once from were down about growth half and sales had from year and with strength point, segment XX%. during operating were

The by weak first large backlog for was in our decking lesser XXXX. extent, a a and half in bridge and which to our decking project influenced piling have not does pricing lower business, division backlog

However, the declined second full half improvement only increase year construction year-over-year. and year an of brought total and year's by new X% orders full to for XX% sales

double-digit business turning to flipped bridge, first growth. declining that’s that that steady such better rehabilitation, the half to expansions Our numerous increase pipeline demand segment planned. capacity and projects year markets positive year that piling kept for in was was in funded throughput much It that we X%. remaining in being piling growth, construction have import-export sales decking serve, pipeline see rates railroads We construction from full full of half are port bridge from energy maintenance as the for growth second needed sales so it

capacity We much large nearly to being beginning as a It’s Looking backlog in something the we story drove as half. tubulars year year. the sales finished protective three divisions years backlog resulting we're increasing there's chance X% for half the for sales prior and Tubular first The oil applications and markets, to Market from another of increasing next Energy. our the we division further in for capacity predicting driven takeaway full systems high-volume in focus full see growth areas first of by planned a were including connect year. sales for land-based greater second that so this for second had gas leading were measurement is in and investments. sales customers development. the research expansion This may example for and increases with the Every to in from over export the don't Permian half need of forecast in capacity like late midstream the in volume and region, coating business. This segment carry gas this we orders with double-digit new year to much Sales oil XX.X%. secure forward projects way. pipeline XX%. strongest. services, Orders see pipeline fueled Turing has is accelerated additional production coupled of and half, up U.S.

short case, outlook the gas oil a always in of period affect price is can very As the of and time. this

coping the in segment the is strategy our position development in the profitable areas. most and assets of Our remain business to for risk with upstream lean

number summarize business. favorable pleased to Each of year-end accelerated climate will the my order start very of highlights. which areas I areas has nice the many And with three as position these growth of with demand saw rates is the Year. the trends $XXX orders experienced in a We in half. of our segments that a backlog XXXX saw the strong were comments in in we exited So business from year. New second reporting new million

with lower on improved adjusted pretax performance million percent year's expense will approximately growth. I interest XXX performance. overall So of fourth Because to new lower as in pretax performance the volume fourth Segment a law than tax XX% of was $X of profit income increase percent SG&A increase, as to sales Adjusted basis The in turn now increase segments. to a SG&A impact a adjusted of and quarter income operating by year net pretax comments. prior story quarter I was sales. the largely full-year focus was fourth year. the quarter, coupled the will and income points in considerably tubular rail enough declined for XX% Full last drive

construction weighed gross gross decking businesses XXXX. pretax has was some that income from piling backlog the low The customer margin difficult to on Piling have segment favorable price the one with ended margins. the struggle and some years bridge year However, our results. to and area due and with replace mix margin

quarter the to led piling The year, improvement While gross margins up and saw lower XXXX make it the wasn't XXXX. a volume through margins reached half. much for therefore, enough grid gross more projects, backlog of outlook bridge for competitive point since in improving a we a increases. improved bridge difficult in business. in The third will as materialize bridge for in and decking lack has to low the first in believe megaproject decking decking smaller It grid division of the

us. worth the few given cash that flow, highlights cash the details a revisiting covered it's but has Jim priority with of flow As

year have We The pressure year of sales from solid where in $XX million a another with the flow. in working cash flow efficiency us capital growth. growth came and with connection maximize helped receivables operating cash

I units all by job a well year enough can't how in operating the grew throughout and this as and million sales emphasize prior However, sales great XX%. working of area. Collection teams managing $XX did in $XX improved over million. cash year, did business days capital while growing some receivables by grew the aspects the only our

reduction achieving It payments. many net of our and was we and adjusted with capital around and debt year This delivering And us on below debt performance, the to XXXX to cash markets. $XX where our expense. on the does growth $XX million in connection us work it in another foreign year, company opportunities increase have as of measurement in midstream to for below typical in million dramatic flow improved to continue cash I increase see capacity opportunities capital year helped early ourselves do business net $X.X a with operating venture interest sheet. We Overall, still pipeline Jim balance and exiting in by balance XXXX. in levels held the business X.X sheet. spending in enough past our use in joint the ending the take we has believe EBITDA to million to sales We with to key and for was create serving year CapEx the our cash improvement, across underway impact I expect do significant ahead. one lowered growth differentiate on performance of repatriated advantage production asset Certain have excellent market. more as we performance currently people have significant debt already spending ratio mentioned, are of a immediate made our in has spending decrease to opportunities systems, XXXX several have positioning expansion goals coupling

call be to the expansion are this on second shop opportunities new good quarter. we more first complete quarter the the sufficient where There portion over to fill have will all operator, we take to turn We I are have my are out as I'll offerings a these flow related no while We to point you solid fund installments at uses expand will finally, are and of cash be to market with few happy and the liquidity underserved. remain questions there. any good where Thank to backlog operating the a by programs. want attempting comments that concretize funding the include still to operations. discussed our forecasted we a expect in will that the to you. issues needs to meeting that cash we might back any performance level area. returns I expect into of new we these is and territories our believe product settlement currently And

Operator

from proceed. Our is Horn question Instructions] Van Please Riley [Operator FBR. first Chris with

Chris Van Horn

I’m sounds customer for million I was little obviously I curious just the approximately about a than litigation a obviously was opportunities coming And it million $X it bit was to litigation, UP customers the a look as year. you them bigger a back UP growth like on So out. you see as $X the is year. if wondering think prior

Robert Bauer

the Chris, mind, we in about, period in keep you’re a of substantial time First talking ties. amount concrete selling that were

our the So wasn't that relationship. for as our specifically restoration one that concrete commercial supplier of things the is press ties in are of release not part mentioned of an we approved

that apply sell. that So and other we the services products services do our and products

I I us wouldn't So the But those to two doing wouldn't think years, what it's to expect ago. and launching possible point which the us at it to looking is be us comparison for as there more business. be than time that expand I this would past a term we make in make three if previously, new may anyone you're particularly difficult now frames a years comparison, opportunities products since were near to but about be in well. out that may for suggest

Chris Van Horn

need heard liability cash your terms of forward? And liability, can funding the going more so if from I of additional in you it correctly, than that that sounds like access don’t to operations fund you like that, or anything lines credit,

James Maloney

talking were Jim. is As this about, we Chris,

settlements. We’re that on that XXXX, due negotiating to currently we and availability extend currently past to have increasing the facility our credit plans no

Chris Van Horn

guidance, how but us XXXX? segments to on projections you about or don’t think the -- know Could you issue for give any any margins formal directional I

Robert Bauer

clear off guess stay things that to But you going that. right could are think, of is You there guidance. I tell of couple specific a you I of would

expect would the lower top improvement be But margin SG&A is to that I reduction starters, expense. legal there would our more due For priorities. among

our that Gross what SG&A a of think XXXX. sales, is really that I profit in construction improve you XXXX. as would percent if about continue improvement anticipate would margin in suffered over to business So

better the construction one of areas we business customer has the hit We XXXX improvement third in fair already see of is mix, if on business that the We need that improving we're grid in from I get improve think piling area some decking gross margins. decking, bottom industrial on weighed really amount that’s segment. backlog the we particularly the pipeline really But bridge seeing quarter. to customers. But had from our a are can that

those already pipeline, bit that projects manufacturing there. a in that were And projects we precast We we're should that little up. resolved. So seeing margin secure get those if already up. some have there issues concrete. suffer did And Those tick we can are the complications

things as and our I get expect and coupled working always continuous these both on actions, other long stays energy think strong we with I that in business as would improvements gross margins. we're margins can improvement So some EBITDA

Chris Van Horn

on control. who an you have on rails there? been comment curious you've Can for solid the seen demand has some opportunity control business? to know outsourcing all and update been there you I’m friction back friction market the some just I

Robert Bauer

us what think that fact to to really some services In terms should track of they are the over you outsourcing turning that on of us.

that, model So product on actual or themselves. track our not entirely past almost modifiers business that services. the in friction selling we did with go the much do along in consumables was And lubricants

more doing on some consumables now managing are are We to the in tanks. the include track everything equipment that furnishing that from Wayside services actual of

them. So are we're them, there with that checking out trucks refilling

that out tanks will of are that of connected systems some the software those tell to running if we're have us consumable. We

some those amount business track right is times. for sure want types models on include there lubricants we're friction of contracts. to uptime of to that managing of customers And the certain And who make their all modifier contracts even at the of

us through So those they we're by faster that of and managing amount growing customers greater value services of to unable it to the we believe one is right now, areas track do are work. of a where that for some on that providing

Chris Van Horn

strong, be the within highlight And overall versus those? order market you is obviously, to each any Could share and in to of take rail. dynamics ability improving especially very what growth, then on your the part continues

Robert Bauer

Well, projects year. really first were foremost, transit and this strong rail

it in really say at projects agencies North Certainly, the out in in fair transit space, globally. But really expansion just in Europe -- of of were area. least winning All we the I'll there. growing share our America, the think was all projects that I about agencies had we're strong.

transit And good extraordinary the doing to And as in those market that for projects and I We as share the growth business. systems, standpoint up that has freight pretty we anything world. the rail of service it areas is healthy been the work in believe with peoples much fact rail some part immigration both pretty that the so and systems America we of I now of gain will most that integration freight know are look like would one from have in to are healthy. point as of underground. of the that involved And don't North of share the that signaling in London in big continues significant to hundreds of be pretty XXXX. doing services one the I we're areas We're where systems. as well picking the related

Chris Van Horn

ratio, debt. as ratio a see And you then for? move like year as can utilize you've you're have you like cash two aiming the next it is the you in capital seems that deployment you'll you have we priorities. the it curious leverage fit? that I’m years can target proven Or do leverage just your pay throughout And flow down or

James Maloney

want is say we be. when would we down to to have debt. will and that we that. now where continuing advantage do we ability in see But that opportunities I take plan to being X on called we the do of below to pay full We invest

Robert Bauer

course the would up take that I that think only thing conditions to us the business could that believe I add solid. thing assuming is only above of Chris remain that I

we and were acquisition, We capital. our what right have if at flow you operating that if a on because an outlook now cash of is positive do deploying that we come terms across in to can look

wouldn't in we mean significant, be debt we unless believe up still we as CapEx down I that we will -- for the since that have don't that able pay to XXXX While see an take acquisition. we forecast

Operator

like I further to are for call There Instructions] this would [Operator at back time. closing to the over no turn management remarks. questions

Robert Bauer

very thank close I next would this as our opposed as more that appreciate quarter. the attending were we the have at much. well of quarter saying time to and probably Okay, close following call normal as We everyone's you late the will quarter we just add by

that forward So to look announcement. Thank you and good bye.

Operator

concludes Thank conference. today’s you. Thank your participation. you for This

this You may at lines your time. disconnect

L.B. Foster (FSTR) 18 Mar 192018 Q4 Earnings call transcript