FSTR - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Third Quarter 2020 L.B. Foster Earnings Conference Call. [Operator Instructions]. And now I'd like to introduce your host for today's program, Mr. Jim Kempton, Controller and Principal Accounting Officer.

begin. may You

James Kempton

today We'll release matters then quarter third Good and you company's third and performance and Jonathan. company's for and market our accessed to Bob business Today's I on with developments. his with disclosures, can up welcome Controller on Bob provide presentation, the company's on and today Thank posted This Investor will questions. open quarter Bauer. earnings on evening, financial call. update website session Foster's evening, and me the Also Officer. along quarter Principal significant review page earlier the our I'm Relations were lbfoster.com. be L.B. our slide our President financial and CEO, the earnings at you, will Accounting everyone, is third Jim perspective Corporate Afterwards, Kempton, results.

date statements Some markets and our the as no of These revise our current making the as undertake release by except publicly of COVID-XX. revisions new opinions to only obligation of laws. of presentation, forward-looking of view today, related forward-looking securities any light we or these are results and to comments our required to information, reflect statements business represent and are statements this in including we

assumptions For presentation. and release to more see our risks, in uncertainties our earnings related the detailed and forward-looking disclosures statements, please

reconciliation disclosures as accompanying discuss metrics. also provided our you and our will non-GAAP today's We tables these read earnings encourage financial consider and carefully and to within metrics presentation earnings within release you

the announced September. was Services and one Test would challenging energy the other results, business of our Inspection of discuss IOS like upstream volatile part strategic briefly the in the start of sale review I I quarter exit our sale early equity Before item. market. of The We previously and to third

to assets, million as the which significant of existing received proceeds tax this tax result year. in we income deferred acceleration upcoming $X in tax in the $X a million As including we the benefits, of the gross receive expect contributed divestiture, to as well refunds

$XX focus are We further also to We this allow company future competencies will better in and for on management moments. the opportunities core which sale in our which believe I'll million touching more generating that tax on a approximately pursue be few position success. benefits,

Services a recast earnings this comments My operation be the focused today from As the have of financial result on a we quarter the business to and presentation discontinued Inspection and prior presented will change. operations. and this Test third as included divestiture, our have statements results reflect periods in within release continuing

financial with I So my that, will start review.

income performance, $XX.X For nonrecurring IOS you Test understand and of benefit of a business underlying of based today helping quarter approximately the third Services of charges million $XXX,XXX the Inspection will many and results resulting from excluding comments the be restructuring nonrecurring business. purposes our of sale on tax the

adjusted the will result, a As continuing be operations, noted. otherwise results to and today. I unless presentation from we'll EBITDA, And adjusted EPS income diluted during net discussing adjusted the refer

rail continued production negatively the in an $XXX.X XX.X% of during of were quarter. gross The operating COVID-XX profit affect Gross was continued and and year third XXXX. results reasons. million volume, company XXXX, million traffic of generally oil to million gross In particular, from reductions in to were all the the $XX.X results compared a decreases due decrease. our and the essential was margin sales in in During our quarter and a XX.X% or prior of basis quarter. in to to $X.X to Even the decreased third several the business which quarter, during our operate allowed though QX. gas pandemic the over profit decrease profit QX points $XXX.X million pandemic, Consolidated QX lowered influence XX considered caused sales

quarter-over-quarter. activities. The million to rail rail QX and segment and by approximately from by Products products were the profit and the decline approximately Our declines U.S. These by friction of spending oil driven production the in was Energy million in by in segment driven the America had to cuts. results decrease a caused our a in our the lower significantly weak events revenues, the coupled gas $X.X versus pandemic of quarter-over-quarter, activities exploration primarily technology Energy revenues. gross million, in the in and America The and The in transit Rail gross declined These Services Tubular and demand in dynamics and both business profit rail These impacted From of management driven offerings companies drove COVID-XX in driven services, the revenues decrease driven segment markets sales pandemic. challenging Technologies by in Rail both XX.X% decreased perspective, rail businesses resulting quarter-over-quarter. Products the sales volumes XXXX. $X.X implement traffic with North decline lower Europe. for have and North products consumable Rail a our the decline mix demand $X.X of due business have Tubular and solid decreases drove in

which contributions the in impacted Everglades to from quarter, Products Piling significant volumes primarily Port completed by of the XXXX, compared reduced which QX included our the Construction fourth XXXX. was quarter project, the in During business was segment

precast concrete less addition, $X.X Spokane, our had during facility the to revenue million facility in third new Boise quarter of XXXX. approximately Washington our QX, compared when In

by for achieved third quarter. our to are expectations operational plan the pleased We note new that of this efficiencies the end has planned

margins despite due ramp-up. Construction basis declined gross XXX $XXX,XXX this segment up decreases were quarter, facility profit the approximately impact in gross to for by for the approximately revenue points the segment's of volume, Boise While the

on moving expenses. Now to

XX.X% to when million compared by the September in decreased Our selling $X million $XX.X was by for or outstanding quarter. expenses quarter expense XX.X% or XX, approximately debt $XXX,XXX $XX.X third due to consolidated in million approximately reduction interest to administrative XXXX. and third the Net reduced a

income tax million benefit continuing in was Our $XX.X from XXXX. QX operations

IOS resulting the additional business divestiture divestiture the from $XX.X million from of Our recorded quarter. taxes Inspection $X.X benefit An tax the from million in benefit the Test during was income discontinued included and benefit Services operations. a

As in from tax benefits Inspection Test approximately the income IOS the Services the aggregate, a million. and result, sale totaled $XX

to the tax addition company tax cash its able received deferred is In these benefits, $X of to for existing the tax and the upcoming million refunds, resulting to year. expected file in accelerate be assets with

diluted operations net operations $X.XX continuing income net last continuing Our compared third to was diluted of quarter share share year. $XX.X or from million income or per per from $X.XX million $X.X

costs from approximately of of of and income net restructuring Test and disposition of EBITDA quarter million the excludes IOS impact in in for decrease business, incurred share. from net benefit adjusted XXXX. per incurred resulting to continuing Adjusted QX restructuring tax $X.X approximately million Adjusted totaled was $X the million quarter quarter. third the Inspection operations $X.XX the third approximately Services tax during of the quarter, nonrecurring Excluding $XXX,XXX a of EBITDA of $XX.X diluted income the $XXX,XXX costs benefit or the the for million of $X.X compared the adjusted

sheet. Now turning the balance to

XXXX of XXXX, XX, in working pandemic. was driven trade decrease to to the receivables the $XX.X primarily decline capital by due million. due COVID-XX December decreased Our a by to sales The mainly compared million $XX during decrease in

at million $XX.X September to million was net XXXX. September XX, at XX, Our XXXX, $XX.X compared debt

leverage XX-month XX, X.Xx for Our is period adjusted net September ratio as XXXX. the trailing of

us and have Over through position the strengthened which these last sheet, initiatives. several times manage we us to continue challenging on balance strategic execute should well years, our our to help to

a very Our current ratio is healthy XXXX, as X.XX. XX, of September

Our to the cash total capacity, that provided perspective, third quarter. is $XX.X From a the available approximately flow continuing activities credit million $XX.X our our was XXXX. our cash million of the available revolving plus capacity in quarter cash, of was by operating end facility $X.X in as million the compared funding under

However, cash cash of is $XX.X from also increase I'd this XX, period. ended a flows $X.X operating the like million $XX.X for to $XX.X on approximately million reflects the a XXXX, year-over-year. flow in months basis, XX-month from operations million continuing September versus continuing million note X last year-to-date operations

which our a during million. capital $XX share that flow of approximately per XX, $XX.XX expenditures approximately derives were free approximately flow yield Our on price free September time $XX.X cash would imply million, stock a of of that closing XX.X%. as Based cash period of

were capital third million. expenditures quarter, $X.X our the During

requirement The would expenditures I our railcar primarily welded very third note that company quarter have capital railcar a long these the and segment. to life. as welded for and relate continuous a unloader useful infrequent Rail very our continuous unloader is assets the within

be mention wanted will million an been XX, in service be Boise, QX this final additional placed September will has been We anticipate on expand asset. approximately product of Idaho during to received on flows million which railcar, that from $X.X $X.X in asset that and also $X.X an railcar this precast into quarter. to you'll that our million the spent has see that XXXX. the concrete year-to-date paid acquisition in fourth offerings related $XXX,XXX investing made for in we activities payment continuing in we railcar, The spent this cash of I which region. spending we've As to XXXX, the

We be to $X.X entire to are approximately anticipating year. the million $X.X operations for continuing for our capital spend million

at Energy year decline to and new $XXX.X third my due is Backlog $XX.X wholly the second That to segments XX, million $XX in backlog. million increase to in into market, both $XXX.X the of volume $X.X Rail quarter orders quarter-over-quarter and results. Tubular Rail compared XX, of $XX.X stood In the new businesses approximately and a million. compared decline by backlog quarter XXXX. and year QX, attributable orders Construction continues move increased September and segment million the XXXX third drag in The at and increased and resulting segment. positive versus XXXX, Tubular an these the the Energy headwinds XXXX, in to sign or which quarter comments into Now respectively. compared by segments of on a overall XX.X% to backlog. the Order to quarter, the were on $X.X Most to last we million $XXX.X this of notably, September of energy concludes the the within fourth million as Construction in with million, million face orders end

to will I over with it So that, turn Bob. now

Robert Bauer

a have everyone. conditions several difficult keep These hello, to particularly have performance on great periods. even last provide more strength challenging weather for actions to important Jim, that Thank business and our makes created months goalpost it and us may maximize focused new you, processes that defining and we

heard, have far. very all of and issues we continue you've As health done interruptions operate locations so few so business with and our to across no

a for a to infrastructure, has focus striving control that hand year-to-date calls exposure we the hand, to company continue for has business energy have picture. virus market. we gone that and, on has flow, currently in widely to field the oil the cost hard have improvements a the XXXX keeping finally growth preserve their original demand not transportation cash infrastructure varying as key actions away. focus As playbook we hit we're to lose sharp are and one exit an lesser had. has divisions hard, that upstream close enough all as our that services The maximize to energy not long on for periods plans reflect for the And long-term both while quarter to on other and hand, results the to opportunities we decided term have extent, On the impact been to so that

does I'm energy distinct I unique ongoing this point expected additional to highlighted markets. cut way month to decline we reduced services context but We acceptable of segment supply to with in IOS. transportation on further volatility join other make stemming In troubled that you of require slow for can in suppliers. us the for describe at affected in an the anticipate pressures, the Energy pandemic markets seen demand divestiture of for some held companies continue like on has to from and not first challenges. weren't segments. the an only achievements service market, business that and outlook production-related the return capital a to Jim results, to Tubular deploy not ago, able This oil out financial covered. on due and recovery case an to we described the the investor going also about in a the to The segment and especially Some results and changes I'll investment along severe struggling surrounding versus that the continued very call Rail both will experience Construction decision IOS, this this rate and comment be consolidation, make market customer the we and and the capital. human travel, provide chain comparing notable pressure attractive is

reported have cash Now the in flow this more the providing contributions to the to we transaction that favorable quarter impact on ahead. insight we results that quarters the closed, have come will the expected are and

So the results. turning to consolidated

experience we locations due to all production backlog continued revenue did quarter, out And of we a delivery at customer Although interruptions operate to more a in in schedules keeping the the quarter, of elevated level. our number subsequently slipped changing.

I like margins job good a felt as lost, did we we volume did. keeping we the as gross Given high

the the expected in to capital us customers fuel much quite environment. by uncertainty the Energy market to still year-to-date of adjustments and as segment. the We're provide Tubular the near-term, segment lever they approximately becomes can caused and still is with orders my coming unfold a recover spending midstream this volumes liquidity maintain what ready There's predominant market, are slowly in on demand segment some is a pull and which may challenging for lower-than-expected XX% XX% months. changes, are this in divisions deal and here basis. quarter a disruptive making views facing So for market on the decline The in too to to is how not for evaluating remaining as in direction to

there's quarter some after we how year or to handle unfold. have travel way recovery and the think the better may as project should resumes, on I next early a next this

we on to affected Tubular segments confidence more Port the the helped help particularly turnaround to are on reassuring in by down for focus everything the the fact is lower transit the Construction the construction our up improved is business. There and rising. very and taken ongoing up improved X third see segment When Now overruns do backlog are rail, the revenue especially Everglades on of lower quarter, other discussed X.X%. on that rail a the freight illustrate markets some and still kept hand, orders, it's this market sectors. sales X.X%, spending where from the and minimize when projects in on we XX%. with infrastructure-related which lower somewhat quarter across volume. keep improved further, on project. sales our by changes sales. our lower declined derived similar cost volume. other were had deleverage the is Gross up the on Tubular margins quarter, par quarter, Construction reflect expense year year-over-year last to gross orders control and the had rail disruption have services, in striking: year, To with these profit been looking segment. quarter expenses margins profit year-over-year in is Those in the from year-over-year finished The segment rail a sales segment division, Piling big the declined Europe, here the XX%, strong with in although some We last margins a declined the having segment rail in ramping our enough which where The even margin lower actions and changes had Construction terrible pleased to improvement at profit X%. changes differences different with XX%. other

order for year. soft construction Now helped quarter the a bookings last are positive rail for year-over-year increase by and somewhat

our rail been provided difference has for However, orders support has ongoing prior by between other the the some sector. significant reflects in energy construction And pandemic It to in Port how comparison, sales this illustrates businesses. it how in spending support while also still versus the affected had the the some Everglades XXXX project for the with this quarters. the reflect picture compared segment market

important declined the on by a consolidated only XX.X%. X.X%, company Tubular segments XX%. But to similarly, the it's the that Now Construction combined declined note Rail declined segment basis, for orders and while year-to-date

programs million. We this to remained last up projects backlog fact to our above are that transit is XX% the period, by a make million year, continue driven that good $XXX almost group. last time Construction year, Europe. and XX%, $XX North divisions encouraged above in and portion backlog of has this above that is Compared all increase, America in including up backlog by higher, the rail

products New that bridge our and see with up precast projects steady booked, continue been demand. have picked orders some sizable have to

backlog beginning increase booked want of The Construction the the from $XX that earlier, that since the the on comments still the to result sizable projects of $XX as mentioned close. million came increase year-ending flow year million back I Rail a orders are combined the above a last XXXX cash little than and segments projects year-over-year circle year. strong of in I Some made we a being And number this more from to finish few as touch is highlights in decline to a Jim Tubular segment as and the offset the to year backlog of out. the further. on the pushed of of some is a backlog,

of Our first X made pace. larger XX-month $XX of cash behind the CapEx million. year-to-date us XXXX. moderate last the half investments And now to quarter, as capital is have would begin the projected trailing period is capital flow and million we We spending up operating $XX a spending in majority that from

programs for $X our capital we're As remain this programs quarters. stay that and top require we spending projecting and continuing for next priority to the million next spending allocation. these is growth than fund look level We're few below quarter, the less at likely the organic quarter, at exciting to capital, per

has toward achieving of been net our and and well. history we're Getting very year per as $XX million below debt priorities, looks we a risk our as joy, as for our X last aiming for giving progress and it the debt put moment pleased This remain We're trailing confidence keep acquisition the our us made picture opportunities will to us close the million $XX reduction years Following XX-month this above cash in with year. good. free this present will nice over the million right quarter We've free few top ultimately years, liquidity this $XX a among will pretty some profile, perform flow reduction. debt priority, that cash on brief they where the flow directed position of provided expected. last for has that period as the below

Our leverage ratio hovering is X around turn.

debt forward cash As look million year, to to tax in outlays tax the $X a spoke the tax expect coming reductions lower make and in Jim from the some we from coming refund overall cash that loss the carryforwards, of operating addition when we in resulting quarters. divestiture could we substantial flow,

Now our of the in business are this the assumes changes that fits to our evaluation, early prospects portfolio. the no but strategy few quarters acquisition stages development won't is a current right the we next other risk with There find acquisition in an in few stage. profile and nothing

see where and us current into beyond. could as We for to any regard with look this emerging out very associated continue assets prices in forecasts do and opportunities some the begin we benefit we risk as recognize declining, be environment. the to with be attractive cautious may XXXX We to acquisition,

around technologies in rail that cost services valuable strategic rider Our Technologies, this and comfort on focus operators information. Rail help efficiency, specifically safety, centered improve and area and remains

This a profit support has growth having potential cycles, of segment where the double-digit served fragmented over scale-out concrete for Products have other products was We Precast last that creates that commodity part Boise, resilient operations lot Concrete established We an among market local potential approximately a where give us. Idaho, market supports immediately market and million in present additional name a us precast to good infrastructure from in going the acquisition for in comments an precast we market growth moved more $X on spend in our established quarter the our expected will market on the for expansion. through insulated several program of to our our subject build quarter our of is scale-out margin and more to been My additional the the manufacturer products did strategy address a in business. years, Spokane. third customers last from acquired outlook. and I'm small to the new focus business, turning some for future opportunity general Our opportunities to projects is precast to fourth business. bring This local

are time on I latter outcome government personally, need will as whether the infrastructure to be Traffic for in certain shipments any But anxiously assistance rail pressure these previous entities cities pandemic. already think an since to the some need in levels the increasing. carloads commodity the the rail commuting improving of and both the as they has operators. something awaiting near transit to recovery rail, with somewhat require from support be systems. on building, vital particularly additional are but The transit due rise transportation-related back systems will traffic we intermodal freight for These with serve, is I bill done on as will been table well First, operations to forthcoming. such infrastructure are think is impact now, and

for us above mentioned market if of the the improved. projects As to general infrastructure civil and the last the orders on a fourth which appear market, in U.K., respect freight quarter quarters. lockdown, that don't for in a that year activity a improving and expect traffic our as an economy America. coming the construction has beginning the than X with $XXX really into be backlog sequentially tougher rail delays, quarter, This the quarter actions had customer bookings. we sales the in segments quarter into pleased environment that pandemic-related commercial improved just second returning, million quarter, provided promising see economic fourth going quarter. since has We better look went we be the strong quarter where With limit to and third are North comparison in most we we last do million remained to $XXX fourth and would fourth expect with the I be backlog

the quarter comparison expected is for year-over-year So negative. the to fourth be

capital to for like looks it the see inclined spending quarter. from budget addition, with should up aren't away that orders. and see little our their make QX we This In last spending from will a year-end versus the fully decline that in backlog customers shortfall shipments haven't sometimes last-minute book-and-bill in we year, spent take

I think we'll still backlog end in a affect with be the year with close any to to the $XXX we million issues good weather a should position in estimates, start backlog. And that barring year position. these

challenge, to for coming with extraordinary measures world for some our quarters. So to wrap the Well, an we're in by as forward to year. do and extraordinary we customers being across to I operating everything deal It's continue is the critical safely. it. thanking they conclude taken I look teams up important up, This us for to our really want supplier to keep infrastructure the an

and I'll wrap I'll we'll questions. call that, And operator. of return with the happy to So any your up, be to take the

Operator

Instructions]. [Operator

line from comes Rygiel Alex question Riley B. first Our of from & the Securities.

Min Cho

of Cho Min that if with just and Alex the the seeing to nice your this kind the Congratulations It's actually in wondering orders of backlog delays time. in the new challenging on good you But this backlog. here. projects, those positives duration you're some see seeing is This change for in any good evening.

Robert Bauer

to talking scheduled of change terms be you're ship. would in By duration, when of it it about aging in the Yes.

Min Cho

Yes.

actually we it see into when So turning revenues.

about kind I of historically, X think or been so. months it's

Robert Bauer

Yes.

yes. to So answer I think is the on a limited that basis,

that in third what the we saw we did that some thought shift we So out quarter outward. go was during quarter the backlog of would see

higher expected our originally we bit were. than be they a So to sales

there where quarters, affecting some not future it is moving amount. in enough the out of a pushing into sales quarter. But it's there's So it is that moving significant of but it's

Min Cho

also sequentially. fourth margins construction of was They to component comps. I of outside they And gross that? anything the easier margins, obviously, year-over-year was Is nicely a Also, basis up of quarter? just a are on were mix it. kind Got kind were into And in these there terms also, nicely wondering, controls? cost up your of there of due maintainable

Robert Bauer

mix, in to because of Well, terms wouldn't in much I our.... probably mix point

Min Cho

Hello? Hello?

Operator

Yes.

the may still line. [Operator resume. You're Instructions]. Yes, you on

Robert Bauer

sorry, if we our Okay. I in was there, Min back Cho, you're in. lost the... But connection. we're

Min Cho

I'm here.

Robert Bauer

got had last explaining Okay. I of we that. was with lot this better piling in the Port that a year, mix. project, in because cost had the we Normally, the and overruns year-over-year the Everglades, middle on piling, some

So mix say pretty standpoint, is that direction profitable from that what a But I much much. has order more at business. It us bridge in affect our too full would is going book is good the that a and a a didn't moment, business.

with have And and so quarter as with did concrete quarter we good that a a precast good well.

different between in that looking I to quarter, significantly QX. reporting segment of QX that terms In anything think to particular is going forward to the be fourth yes, I point and wouldn't

yes, put think it answer there, don't materially any to about So expect the I that I be reason think be out should is while we to different. that something exact to say similar. similar, I have is it ought an number comment would I wouldn't would your that

Min Cho

if of the recent the any how about Can forward and restrictions? seen I was Crossrail it or impacted impact London, And project large the -- you've that that in your by is project know is Okay. in project, on any were a you at COVID. from the and impacts second people recent fairly XQ. moving bringing back And talk some quarter end from you

Robert Bauer

back demand looks was moment, more were We think our one back we out areas say like maybe are to getting troubling I that of it because the kind and up. that teams few a meaning I resuming, of It going were that at run is obstacles. Yes. ramping into the really and on probably we on-site. back Work were

few sure in going some not we a or be there of with checking this working access we're entirely of the interruption It's them, schedules. have to Just on. terminal to the on some sites that we're week, may what's it happen possible may not

now. right It's is of hard So people disruption that all bit I'm little I to from and I'm on a in just the that our on But on is awful a see country, the what London now. in with finger right thing to think quantify this. going to hearing based expecting of put hard

in have like U.S. England, Canada we places in have an like business We that. and been and essential been the just

So situation, off a this the we've that their year. pull But time. a has been of operate continued project to period London teams difficult Crossrail did this of particularly for while contractors during and

bit term. a So again, be think I short of here probably there'll disruption in the

Min Cho

last your be just future quarters? you historical reporting some restated as financials quarters? going Okay. the providing Or show them And just to are will you're question, you then for

James Kempton

We'll as show through we the go quarter. them

when XX-Q reflect you'll as on tomorrow and will for that well basis issue discontinued as it 'XX both ended XXXX So quarters operations. periods recast we see that the for X-month the the

Operator

of Our line question Chris Sakai comes next from the Singular from Research.

Joichi Sakai

Yes.

on visibility. going Just much guess, backlog it into a how XXXX? is say -- backlog your would I that Is you question on,

Robert Bauer

of the of piling any the one division a actually shipments some probably Well, far longest, that will go something XXXX. have XXXX, is others. We could I a I'm be but of have that are exact Jim... is will go -- at backlog here. I we might we or the into that going year. out to that's don't stretches there's we XXXX. try quickly know at can't going that one where There if the put the excess backlog be that There probably That going some where on bridge looking number out to majority into our have in it. look we think projects

James Kempton

I think the...

Robert Bauer

big not not, don't might you, fingertips Do because part Chris, it right -- of we can be have a a we ballpark if providing? it's But number. that a you I that have better at than get our always Or to now.

Joichi Sakai

thing just now? One of it's the fine. profit that forward, That's some Okay. would guess at sort to wanted as idea, the I above gross margin get what well, going be XX.X% things driving

Robert Bauer

it Well, that are in, our kind that of things above to resumption example, for friction looking the would business. forward management we some of driving recovery be

that the continued continues and business would and margin traffic. that recovery the say, standpoint These transit which for control that. to I margins. above that things as couple from to lubrication a The our track both wheel accretive grow. we've that of businesses a business first used business So will that precast is consumables product with has from one. we That Friction the gross is between have of and the XX.X%. products on freight That improve just me management standpoint, soft help to lines concrete guess, We help in are about having that are believe are been rails. traffic, friction a one control referred let due growth of

later then into systems, in we're our of information got expect book along And spending place good a kick are lot But benefit continue American also out XXXX. technologies a and European areas. products We margins that in Great some to win is which as lines until passenger condition rail like well. but better that have that's our Act it's in launching management, that of A that coming customers the mentioned of North the railway systems, like We those Outdoor we American going well. as automation and little on business, new a while businesses from basket, won't margins. in disruption I probably That that, going it's and area, ago. things number to a bridge going that business monitoring, gross lot nice is in accretive the to order of that. to of margins, our take

mind top of be the going So look those to, improving kind we'd are gross profit the drive ones that that forward. to will of

Operator

[Operator Instructions].

of comes Funds. question from the Gabelli line next Kearney Brett from Our

Brett Kearney

you -- the marketplace? relative or from you they Boise weigh whether you the able in and you your in-house. like a offerings wanted some customer to side, you've bring opportunities you at. organic that the offerings have And have building and see levels to the little relationships sounds see the up you new bit, here, running to Can you I talk towards guess, investments out opportunities been facility it to out more consolidation on guess, there I outlined Great weighing hear about, the

Robert Bauer

Yes. the about And Concrete? Precast you're specifically talking

Brett Kearney

right. That's Yes.

Robert Bauer

you, Well, opportunities. Yes. Yes. there some I'll tell are organic good

going markets the the off roll can touch call someone can't That's locations consolidation to really what we and up. we fact, think take that going to where probably actions a basis locations. In of outweigh term, us -- be really into acquire is be from it from near to going we really I they're hub that latter that our get some hub can that focused on some operate spokes we our

can that And additional of product bring us have customers by that's to if of way we opportunities serve. kind lines. I of But organic the may will, you mean we so a small a growth some operation, satellite in that, what spoke

lines So doing Boise remarkable our I what area. expanding been this of that on our doing, job in Texas we're operations. a think, out We've in product is

That's that Dallas of project one We into won. the we the parts have barrier of sound transit moved the walls. DART,

Somewhere order it. the just of $XX of wall in sound barriers million for that the on is

that to kind going commercial amount a modest new and examples together We these start we're that. of little serve didn't septic Texas some in to new residential on just a facilities tanks. that up, we're and are needs And geography that stepped doing I'd a existing a the delivery facilities, taking, where business put to of market. premises in have equipment one plants or capital of sitting And bit building we're some those of construction new not and other our that and that's in but do some are have that business say, We're that of septic things the like small in storage into into market anything need that. new we past, of a and installation light any other for a trucks organically. example, the tank work We of move and now We of site organically. for to open

in we a that of business lot opportunities organically So got as well.

Brett Kearney

I with of your your That's work, technologies North some with with product automation planned condition as the U.S. gaining still the London in of and you then lines know adopting great. advanced Crossrail kind project and America of kind forward well? are pretty that systems, of guess, and monitoring. And traction advanced I rail guess was America, systems Is technology the -- some I funded some Is the in customers. that in on and already your is of going North transit that transit have offerings in

Robert Bauer

I'm to of being slow. have really that kind to going as describe

systems of So one U.K. passenger, it's control, more We of got That's to the and some of system. do that that We in passenger things we've success some brought of bit U.S. market. there and working together information sophisticated systems we example, do couple area systems, of avalanche into the different, kinds haven't a work. and or better of having and integration trying Works that. the are where going. really slow well monitoring. video But voice in and one's the that things little for North American really we rockfall Crossrail as -- systems, work a out the integration the access we're where detection integration surveillance service put where in bit as Where is like crossing transit the detection those a little equipment, address we flood of

are think one we're hand, on if using So technology. LIDAR you these applications those, where, about

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both, combination for. on So you're it's of what looking a depending

detection get and areas that we some for U.S. transit. detection, of to that and what that's we in the other examples monitoring the sites example, environment customers of of in. at to systems Crossing in But they automation can traction win point flood some products, are some freight where But some in those So interested now. are have rockfall to because operate starting do is mostly we're we're that the just beginning of

Operator

back And Bauer for Instructions]. the does of like to any session program. I'd [Operator this question-and-answer program conclude hand today's further Bob remarks. the to

Robert Bauer

you appreciate all catching there. up to here with the next I as questions well. appreciate Well, wrap the want today, up attention to everybody's and we We quarter. time it right, And after forward and look interest

So very thank you much.

Operator

you, This and conference. conclude Thank ladies does your today's gentlemen, program. participation for in the

now may day. Good disconnect. You

L.B. Foster (FSTR) 5 Nov 202020 Q3 Earnings call transcript