L.B. Foster Firm (NASDAQ:FSTR) This fall 2022 Earnings Convention Name March 6, 2023 11:00 AM ET

Firm Members

Stephanie Listwak – Investor Relations Supervisor

John Kasel – President and Chief Govt Officer

William Thalman – Chief Monetary Officer

Convention Name Members

Alex Rygiel – B. Riley Securities

Chris Sakai – Singular Analysis

Brett Kearney – Gabelli & Firm

Operator

Good day and thanks for standing by. Welcome to the This fall 2022 L.B. Foster Earnings Convention Name. Right now, all contributors are in a listen-only mode. After the audio system’ presentation, there shall be a question-and-answer session. [Operator Instructions] Please be suggested that immediately’s convention is being recorded.

I’d now like at hand the convention over to your speaker immediately, Stephanie Listwak. It’s possible you’ll now start.

Stephanie Listwak

Thanks, operator. Good morning, everybody, and welcome to L.B. Foster’s fourth quarter of 2022 earnings name. My identify is Stephanie Listwak, the corporate’s Investor Relations Supervisor. Our President and CEO, John Kasel; and our Chief Monetary Officer, Invoice Thalman, shall be presenting our fourth quarter working outcomes, market outlook and enterprise developments this morning.

We are going to begin the decision with John offering his perspective on the corporate’s current portfolio modifications and fourth quarter efficiency, together with market growth. Invoice will then evaluation the corporate’s fourth quarter monetary outcomes. John will present perspective on the corporate outlook and his closing feedback. We are going to then open the session up for questions.

At present’s slide presentation, together with our earnings launch and monetary disclosures, have been posted on our web site this morning and will be accessed on our Investor Relations web page at lbfoster.com. Our feedback this morning will observe the slides within the earnings presentation.

Some statements we’re making are forward-looking and symbolize our present view of our markets and enterprise immediately. These forward-looking statements mirror our opinions solely as of the date of this presentation, and we undertake no obligation to revise or publicly launch the outcomes of any revisions to those statements in mild of latest info, besides as required by securities legal guidelines. For extra detailed dangers, uncertainties and assumptions referring to our forward-looking statements, please see the disclosures in our earnings launch and presentation.

We will even talk about non-GAAP monetary metrics and encourage you to learn our disclosures and reconciliation tables offered inside immediately’s earnings launch and inside our accompanying earnings presentation fastidiously as you think about these metrics.

Moreover, throughout the years ended December 31, 2022 and 2021, the corporate accomplished three acquisitions and two divestiture transactions in step with its strategic transformation plan. The place significant, a few of immediately’s feedback alter for the influence of those strategic portfolio modifications to spotlight efficiency from ongoing operation.

So, with that, let me flip the decision over to John.

John Kasel

Thanks, Stephanie, and whats up, everybody. Thanks for becoming a member of us immediately for our fourth quarter earnings name. In case you’re following the presentation supplies, please flip to Slide #5.

As you understand, we started a strategic transformation that we fostered in late 2021. And I am happy to say that the work within the fourth quarter was one other constructive step within the transformation of the corporate.

As a abstract, since a refresh technique was rolled out, we accomplished 5 transactions, which have been comprised of three firms we acquired from our progress platforms, and two legacy noncore firms we divested. These transactions have been accomplished. Through the time we confronted unprecedented working challenges, significantly round uncooked materials inflation, provide chain disruptions, and labor availability.

What you may hear on immediately’s name is that we have been capable of overcome these challenges and ship sturdy ends in This fall and within the second half of 2022, persevering with to construct on the momentum shifting into 2023. Particularly, within the fourth quarter, we continued the development of sturdy year-over-year enhancements and outcomes established within the third quarter with This fall revenues up 21.4% versus final yr.

Our portfolio transformation and margin enchancment initiatives delivered a powerful 260 foundation level enchancment in gross margins, and a $7.5 million in adjusted EBITDA, which was 5.5% of the web gross sales and up practically 133% over final yr. Order charges have been very strong at $137.8 million, up practically 45% during the last yr, and our backlog remained at close to document ranges of $272 million.

With the outlook for our key finish markets remaining promising and our strategic transformation on monitor and taking maintain, we issued monetary steering for 2023 which displays a continuation of sturdy year-over-year progress. And with the prospects for bettering monetary outlook, our Board of Administrators licensed a three-year $15 million inventory buyback program. I am going to cowl these factors intimately in direction of the top of the presentation.

For now, let’s flip it over to Invoice to cowl the monetary highlights of the quarter and full yr. Over to you, Invoice.

William Thalman

Thanks, John. And good morning, everybody. I am going to start my feedback by overlaying the fourth quarter highlights on Slide 7. Word that the schedules within the appendix present extra detailed info on our monetary outcomes, together with the non-GAAP measures Stephanie referenced.

As a reminder, we divested the Piling enterprise in 2021 and Observe Parts in 2022

These transactions weren’t handled as discontinued operations. Accordingly, the quantities introduced immediately embrace the Piling enterprise throughout the Metal Merchandise and Measurement segments, with Observe Parts mirrored in Rail, Applied sciences and Companies.

Fourth quarter gross sales have been $137.2 million, a rise of $24.2 million over This fall final yr, pushed by sturdy natural progress and the accretive strategic transformation actions taken in 2022. The improved enterprise portfolio will be seen in our gross margin enlargement, which was up 260 foundation factors, largely attributable to our acquisition and divestiture exercise. Margins within the legacy enterprise additionally contributed 70 foundation factors to the development.

SG&A expense was up $5.2 million because of the extra bills from acquired companies, coupled with M&A transaction prices, and elevated personnel bills throughout the quarter. The reported internet loss for the quarter was $43.9 million, and was attributable to two particular noncash gadgets. $8 million was attributed to intangible asset impairment expenses required in two of our returns companies. $5 million in our precision measurement enterprise and $3 million in fabricated bridge merchandise. Each of those companies have been experiencing more and more tough market circumstances. On account of our reassessment of their long run outlooks, these expenses have been required within the quarter.

As well as, we recorded a $37.9 million tax valuation allowance within the quarter, absolutely reserving our internet deferred tax asset place at year-end. This valuation allowance was mandatory based mostly on an analysis of cumulative historic proof as required by the accounting requirements. These requirements preclude us from placing a lot weight on anticipated future taxable revenue in our evaluation of the web tax asset place, thus ensuing within the full valuation allowance. As our strategic transformation continues to drive progress and profitability enhancements within the coming years, these tax property, most of which have an indefinite carry ahead interval, are anticipated to supply a worthwhile tax defend lowering our money tax obligations for years to come back.

Adjusted EBITDA in This fall elevated $4.3 million to $7.5 million, a 132.6% improve year-over-year. I am going to cowl the drivers of this enchancment on the following slide.

Fourth quarter orders totaled $137.8 million up 44.8% over the prior yr. Orders improved 32.1% organically and 15.4% from acquisitions, and solely barely offset by a 2.7% decline from divestitures. Fourth quarter backlog elevated $62.1 million year-over-year attributable to a 22.9% natural improve and seven.4% improve from acquisitions, partially offset by a nominal decline from divestitures.

I am going to spend a minute on Slide 8 which gives an summary of the drivers of our year-over-year enchancment within the fourth quarter. The chart on the left exhibits the development in gross sales, which displays the notable $14.6 million natural progress within the legacy enterprise throughout the quarter, representing a 12.9% improve year-over-year. The influence pushed by portfolio exercise added $13.6 million in gross sales from acquisitions, with a $4 million decline attributable to divestitures.

The adjusted EBITDA chart is a strong depiction of the profitability carry we achieved in each our legacy enterprise in addition to from our portfolio strikes. Adjusted EBITDA for the present yr fourth quarter removes the influence of acquisition and divestiture associated prices, the VanHooseCo stock buy accounting and contingent consideration bills, and the fourth quarter intangible impairment expenses. Our legacy enterprise delivered a $1.1 million improve in adjusted EBITDA, representing 7.5% leverage on the incremental gross sales achieved within the quarter. The influence of the portfolio transformation is much more important with a $3.2 million improve in adjusted EBITDA achieved on the web $9.6 million gross sales progress from M&A associated actions, representing roughly 33% leverage on the web M&A associated gross sales progress. The mixed result’s a significant improve to our total profitability with $7.5 million in adjusted EBITDA, representing a 5.5% of internet gross sales and practically double the EBITDA margin reported in This fall final yr, and up 233% on an absolute greenback foundation.

Slide 9 highlights that that is the second quarter in a row through which we reported a big enchancment in our run charge profitability. Throughout 2021 and within the first half of 2022, we have been confronted with unprecedented inflationary, labor and provide chain challenges along with underperforming companies inside our portfolio. The chart displays the adjusted EBITDA margins within the first and second half of 2021 and first half of 2022, and highlights the deterioration we have been seeing in our outcomes. This example turned the burning platform for change as outlined in our refreshed enterprise technique. We started to see the advantages from our margin restoration actions and portfolio transformation within the 2022 third quarter outcomes. And this development continued into the fourth quarter. The mixed result’s a 6.2% adjusted EBITDA margin for the 6 months ended December 31, 2022, a step change enchancment over the earlier three 6 month intervals. These outcomes give us confidence that our strategic transformation is on monitor and taking maintain.

Over the following three slides I am going to cowl the efficiency of every phase beginning with our Rail phase on Slide 10. Fourth quarter Rail phase income elevated $6.9 million year-over-year pushed by a ten.2% natural progress, partially offset by a nominal discount related to acquisition and divestiture exercise. Gross margins expanded by 350 foundation factors, attributable to an improved margin profile with the acquisition of Skratch, and the divestiture of Observe Parts, coupled with quantity leverage in Rail Merchandise. New orders in This fall have been up practically 26% year-over-year and backlog was up 9% versus final yr, with broad energy in demand throughout the portfolio

Turning to Precast Concrete on Slide 11, income elevated $16.5 million, representing an 81.3% enchancment year-over-year. Natural gross sales elevated 24.8% and the VanHooseCo acquisition contributed 56.5% in progress year-over-year. Gross margins elevated 220 foundation factors pushed by the influence of the VanHooseCo acquisition and the reported phase margins included a $300,000 unfavorable stock buy accounting adjustment, which diluted phase margins by 80 foundation factors. Orders and backlogs ranges are up year-over-year each from the VanHooseCo acquisition and powerful demand surroundings for merchandise in our legacy enterprise. And we anticipate this favorable development to proceed with the introduced authorities infrastructure funding applications.

For the Metal Merchandise and Measurement phase on Slide 12, revenues elevated $800,000 or 3.6% year-over-year. The natural gross sales improve was 11% offset by a 7.4% lower from the sale of the Piling enterprise. Gross revenue margins improved by 30 foundation factors with the rise attributable to the sale of the Piling enterprise and margin enhancements in Coatings and Measurement, partially offset by weaker margins realized in our Fabricated Bridge enterprise. Order charges in This fall elevated 95.2%, whereas backlog elevated 92.3%, pushed by the Coatings and Measurement enterprise unit, with roughly half of the backlog improve attributable to the Summit pipeline coating order booked within the third quarter of 2022.

I am going to now cowl our 2022 full yr outcomes mirrored on Slide 13. 2022 gross sales decreased $16.1 million or 3.1%. The influence of divestitures drove 12.8% of the decline, partially offset by a 5.7% improve from natural gross sales and 4% from acquisitions. Regardless of the gross sales decline, gross revenue for 2022 completed at $89.6 million, up $3.3 million or 3.8% versus final yr. The rise in reported gross revenue was pushed by the accretive influence of the portfolio modifications executed in addition to enchancment in our legacy enterprise, as pricing and value mitigation actions started to take maintain within the second half of the yr. The rise in gross margins for the total yr was realized regardless of the $4 million unfavorable settlement associated to long run Crossrail tasks, in addition to a $1.1 million adjustment for the VanHooseCo stock buy accounting adjustment. In complete, each changes diluted 2022 reported margins by 100 foundation factors.

Promoting and administrative bills for 2022 elevated $6.7 million or 8.8%, representing 16.6% of gross sales for the total yr, up from 14.8% in 2021. The rise relative to gross sales was largely because of the anticipated influence of portfolio transformation actions, together with $2 million in acquisition prices and $0.5 million in VanHooseCo contingent consideration along with will increase in personnel, journey {and professional} providers prices.

Backlog stays close to document ranges with a full yr book-to-bill ratio of 1.11.

A dialogue of our liquidity and precedence makes use of of money is mirrored on Slide 14. I am going to begin by highlighting that our gross leverage ratio per our credit score settlement covenant declined a half a flip in This fall to 2.8x, nicely under the 4.0x requirement. We selected to spotlight the gross leverage credit score settlement covenant as we imagine it is consultant of our true credit score leverage given the portfolio strikes we have made.

Free money move generated within the quarter diminished our internet debt by $5 million to $89 million at year-end. Highlighting the significant portfolio strikes we have achieved, we have redeployed practically $32 million in unproductive capital to a few investments inside our progress platforms: Skratch and IV inside Rail Applied sciences, and VanHooseCo in Precast Concrete.

Our consideration now turns to additional investing in natural progress initiatives inside these platforms. You will be aware that CapEx is projected to be roughly 2% of gross sales which is barely increased than our historic vary of 1% to 1.5% of gross sales. The incremental funding is particularly tied to progress alternatives clearly perception, and we anticipate the payback on these investments to be roughly two years.

We are going to modestly allocate extra capital to fund natural progress alternatives in Precast Concrete and Rail Applied sciences however our prime precedence use of money is to proceed to delever. We have made additional progress lowering our internet debt in early 2023 with the February month finish stability at roughly $80 million, down $9 million from the beginning of the quarter. We’re happy to report that we have collected an extra $3 million Federal revenue tax refund in February, and we now have extra deleveraging tasks underway. I am going to remind everybody that we now have roughly $96 million in Federal internet working loss carry forwards out there to attenuate U.S. money taxes sooner or later. I am going to spotlight that the deferred tax valuation allowance recorded in This fall doesn’t influence the supply of those tax credit.

And lastly, our settlement obligation with Union Pacific stands at $16 million and shall be fulfilled in December of 2024, leading to an $8 million per yr enhance in working money move starting in 2025.

The anticipated improved money move and leverage outlook was a crucial driver of the choice to authorize the $15 million inventory buyback program which John will cowl in his closing remarks.

In abstract, we’ll proceed to keep up a prudent, cautious capital allocation philosophy as we execute our strategic transformation.

My closing feedback consult with Slides 15 and 16 overlaying orders, income and backlog by phase. The book-to-bill ratios on Slide 15 mirror the growing energy we have seen in our enterprise by the fourth quarter. Rail orders have been up 25.9% year-over-year and up roughly 30% sequentially driving the strong gross sales efficiency within the Rail phase in This fall. The favorable 1.05 book-to-bill ratio for the total yr translated to a 9% improve within the Rail backlog. The Precast Concrete backlog additionally elevated throughout 2022 with a good book-to-bill ratio at 1.04 and the addition of VanHooseCo translating to growing orders and gross sales every quarter all through 2022. And the Metal Merchandise and Measurement order charges for the yr considerably outpaced revenues largely because of the Summit order booked in Q3. Their efficiency was a significant contributor to the consolidated book-to-bill ratio of 1.11 for the total yr.

And lastly, our consolidated backlog on Slide 16 displays robustness throughout the portfolio with year-over-year progress generated in all segments. Our year-end backlog stays close to document ranges achieved within the third quarter and is up roughly 29.5% versus this time final yr. The backlog was impacted by a 22.9% natural improve, with the remaining 6.6% internet improve attributable to portfolio strikes. The sturdy order consumption and backlog ranges exhibit the continuing energy within the enterprise and business markets we serve. Whereas recessionary market circumstances stay a broader macro threat, we stay optimistic in each the close to and longer-term prospects for progress in our served markets, and the assist the introduced authorities funding applications are anticipated to supply.

Thanks on your time. I am going to now hand it again over to John for his closing remarks. John?

John Kasel

Thanks, Invoice. Please flip to Slide 18. I am going to begin my closing remarks on the general advertising and marketing and enterprise outlook. The portfolio strikes we now have made exhibit our dedication to executing the technique, investing in our progress platforms. As Invoice talked about, our backlog is close to document excessive ranges and we stay optimistic within the longer-term outlook for our core finish markets, particularly within the rail and basic infrastructure area. We proceed to deal with guaranteeing a seamless integration of the companies we acquired this previous yr, whereas assessing the brand new market alternatives these acquisitions open up. I am happy to say that the 2022 acquisitions have met our expectations and are accretive to the working margins of the corporate.

Constructing on these new acquisitions and shifting into 2023, our consideration will return to driving natural applications in each present and adjoining markets, made out there by our strategic execution. We proceed to have portfolio challenges to handle, significantly within the Metal Merchandise and Measurement phase. As Invoice talked about, non-cash asset impairment expenses have been taken within the Fabricated Bridge and Precision Measurement companies, each of which confronted weaker market demand and inflationary headwinds. As a be aware, we’re specializing in stabilizing and establishing restoration applications for these return companies within the short-term.

On the favorable facet, we proceed to see bettering outlook for our Coatings enterprise with This fall order charges up 30% year-over-year and a number of the order booked in Q3 of final yr is predicted to start supply in 2023. And whereas recessionary threat persist in lots of our industrial markets, we stay cautiously optimistic that the beforehand introduced authorities infrastructure applications will present some degree of assist for demand of our services and products. We proceed to have line of sight to important infrastructure tasks throughout the portfolio which can be nicely aligned to our progress technique and citation exercise stays strong. So we stay centered on our order e-book execution and driving profitability enchancment applications, whereas guaranteeing our provide chains are steady and safe.

Turning to Slide 19 and as I discussed in my opening feedback, we established the gross sales and EBITDA steering for 2023. That is the primary time we’ve offered full yr steering since 2016, highlighting our perception that our strategic transformation is on monitor and enterprise prospects are bettering. We anticipate 2023 gross sales to vary between $540 million and $570 million, with a spread representing year-over-year progress of 8.5% and 14.6% respectively. This outlook assumes no portfolio actions, I’ll be aware.

Adjusted EBITDA in 2023 is predicted vary between $27 million and $31 million with corresponding % of gross sales vary between 4.7% and 5.7%. The anticipated adjusted EBITDA margin vary is decrease than we’ve seen of 6.2% within the second half of 2022, however this is because of regular seasonality within the enterprise. As a be aware, we’ll present periodic updates to our steering because the yr progresses.

And lastly, our Board of Administrators has accredited a $15 million firm inventory buyback program, representing roughly 11% of our market cap. The three-year program expires in February of 2026, and limits purchases to not more than $5 million throughout any trailing 12-month interval. This system gives an vital extra lever to allocate capital strategically as money flows and liquidity enhance sooner or later.

In closing, 2022 was a big transition yr for us, throughout which we created sturdy momentum in outcomes. As demonstrated in our actions and our outcomes, we’re reworking L.B. Foster into technology-focused, high-growth infrastructure options supplier. The favorable influence of our strategic transformation was evident within the outcomes we posted within the second half of 2022.

It has been 15 months since we rolled out our refresh technique, execution roadmap and aspirational targets of $600 million in income, and $50 million in EBITDA as you may see on slide 20. However I am very happy with what our staff have achieved in such a brief time frame, but in addition acknowledge these are nonetheless the early days in our transformation journey. We plan on persevering with to leverage and increase the expansion platforms we established in Rail Applied sciences and Precast Concrete, and anticipate to ship continued progress as we transition is 2023. On the identical time, we intend to proceed to drive our returns portfolio to supply money wanted to prudently make investments and handle our total capital construction.

I look ahead to reporting on our continued progress in ’23 and thank all of our stakeholders for his or her ongoing assist.

I might like to finish the decision with a touch upon security. Security is on the forefront of the rail business we serve immediately. And our ideas are with the folks of East Palestine, Ohio, a group that is solely 50 miles from the place I am talking to you immediately. Security can be a core worth of the L.B. Foster Firm and I might like to acknowledge Brian Friedman, who leads our Metal Merchandise and Measurement phase. After a few years with substandard efficiency, Brian and his group went the complete yr of 2022 with no recordable accidents. It is a management that we aspire to at L.B. Foster and underpins the worth that strengthens the corporate’s tradition to make sure this strategic transformation, actions that we spoke up immediately, have a powerful base to develop from sooner or later.

Nice job to you, Brian, and your group. Operator, will now flip it again to you for the Q&A session.

Query-and-Reply Session

Operator

[Operator Instructions] And our first query will come from Alex Rygiel of B. Riley Securities.

Alex Rygiel

A few fast questions right here. What do you assume intermediate time period goal is for natural progress of the enterprise proper now?

John Kasel

Sure. You are speaking about in gross sales primarily…?

Alex Rygiel

Sure. Sure, I might say complete firm gross sales natural progress goal and type of intermediate time period which means type of subsequent one to 2 years.

John Kasel

Sure, I might say, nicely, to begin with, we’ll be specializing in the Rail Applied sciences and Precast is the place the natural capital shall be spent for natural applications. In order that’d be actual clear line of sight the place we anticipate to speculate in addition to get these returns.

I believe, Invoice, you assume we will add just a little shade. What we’ve…?

William Thalman

Sure. Sure, I’d say, the steering that we offered for 2023 has a spread of 9%, 8.5%, as much as 14.6%. Clearly, there’s just a little little bit of carryover impact of the acquisitions that we have achieved in 2022 that may present itself in these progress charges into 2023. After which, I believe organically we’re excessive single-digits could be the place we’re centered. I’ll spotlight, we talked about within the script that we have some natural progress applications recognized throughout the rail know-how area and the precast area, each associated to the acquisitions that we have achieved. So the CapEx shall be just a little heavier than what we have seen prior to now. However we like what we see by way of natural progress applications. And we really feel like we now have alternative to leverage these platforms, given the work we have achieved.

Alex Rygiel

After which from a high-level over that form of one to two-year time interval, are you able to form of listing the most important contributors to EBITDA margin enchancment?

John Kasel

Nicely once more you need to return to our aspirational targets which I completed the presentation with or a minimum of in my closing feedback, so we nonetheless — aspirational could be $600 million by 2025. So let’s decide that quantity. $50 million of EBITDA. This yr was a giant yr for us 2022 Alex. So a number of the portfolio strikes we made, the 2 divestitures, in addition to the three acquisitions has actually put us ready the place we will have a transparent line of sight to hit these aspirational targets. So a part of what we’ll be seeing right here within the subsequent few years so far as progress in prime and backside line, in addition to leveraging our SG&A, will come from the rail particular know-how facet, on the digital facet, the data facet in addition to within the precast facet. So we really feel superb about our capability to make that occur, with or with out the infrastructure spending that we’re seeing immediately. We have really feel fairly good about the place we’re at and extra importantly, the place we’re heading.

Operator

Our subsequent query comes from Chris Sakai of Singular Analysis.

Chris Sakai

Only a query on — are you seeing an uptick in new orders in rail after the Ohio practice derailment and all that occurring?

John Kasel

We do not touch upon something associated to that ongoing investigation. However I do need to make sure that all people understands that we now have full confidence within the NTSB in addition to a better degree of respect for NS as a buyer. Having mentioned that, our exercise — and I discussed in my remarks, the bidding exercise proper now within the rail area in addition to throughout the corporate may be very strong proper now. So we do not essentially level to something associated to what particular incident. Exercise itself usually may be very, very sturdy proper now.

Chris Sakai

Okay. Thanks for that. After which your improve in steering for 2023, how a lot of that will you say is said to the Infrastructure Invoice?

John Kasel

So we now have — Invoice and I, we now have been saying now for — nicely, because it got here out in what 14 months in the past, we mentioned that we weren’t anticipating a lot in 2022, however we have been anticipating billings to start out flowing by in 2023. We’ve seen solely a small piece of that truly hitting our order e-book and coming by in billings. So we anticipate a few of that also but to come back. However numerous this pays to the place we’re at proper now with our close to document backlog of $272 million. Chris, that is actually put us in a powerful place proper now. So something that is going to be coming from the Infrastructure Invoice, I believe, shall be — give us alternative to perhaps even — perhaps hopefully be in direction of the highest finish of that vary, however we’ll see how issues come collectively right here. Invoice, something you want so as to add there?

William Thalman

Sure. No. I’d say that — sure, the Infrastructure Invoice, exercise has been growing by way of quotations, and we’d anticipate to begin to see some increased volumes coming by, perhaps in direction of the again half of the yr, and a continued run charge improve. The one different factor I’d spotlight is that there are some recessionary dangers on the market that create disruption. Clearly, there’s rate of interest headwinds and what have you ever. So we predict these tasks are going to get achieved and is perhaps a bit extra delayed than what we’d have in any other case seen in previous intervals of time. However we really feel assured that we are going to begin to understand some extra of these advantages in direction of the top of the yr.

Chris Sakai

Okay. And final one for me. Your — the backlog and new orders improve in Coatings and Measurement, are you able to shed some mild there? How do you see that taking part in out in 2023?

John Kasel

Sure. Thanks for the query. We did — we introduced up in final quarter as mentioned, we booked the Summit order, proper, which was $19 million and was a giant order for us to complete the yr. So far as Summit itself, we’re — ourselves in addition to our associate, our in line associate ACIPCO, have scaled up produce that work. They’re working each of their metal mills immediately. And we now have added about — we doubled our workforce within the current two to a few months, giving us alternatives to provide that, in addition to we now have seen a lot of different pipeline coating jobs which have come by, that actually make us really feel that we’re going to have a pleasant yr in that enterprise in 2023 and past, together with beginning to ship as much as the Summit order.

Operator

And our subsequent query comes from Brett Kearney of Gabelli.

Brett Kearney

Wonderful. Most likely simply two fast ones. The current announcement of the FUCHS partnership, are you able to simply speak concerning the evolution of that, and I suppose what it unlocks for each of the organizations?

John Kasel

We’re type of the model chief, if you’ll, within the friction administration enterprise. And it is about standing that innovative. So we have been on the lookout for a channel associate to assist us on the R&D facet, the chemistry facet, in addition to take a few of our merchandise throughout the globe, particularly in Western Europe, and the FUCHS is an ideal associate, channel associate in addition to R&D associate to make that occur. So there’s numerous collaboration that’s occurring for the final, I might say 1 yr, 18 months. We signed a cope with them not that way back. I will be heading over there shortly to satisfy with the CEO of FUCHS. And we’re very excited concerning the alternatives it will do to make our — I suppose, our footprint, if you’ll, and our alternative to deliver extra of the innovation know-how to the rail area particularly in Western Europe. We’re very enthusiastic about that. In order that’s about all I care to say about that immediately. However search for extra issues popping out of that collaboration cooperate-ship through the years to come back.

Brett Kearney

Excellent. After which perhaps on the precast platform, you’re seeing strong progress, it sounds just like the legacy enterprise in addition to VanHooseCo. And your legacy enterprise, I believe coming off of The Nice American Outdoor Act energy. Are you able to simply speak about a number of the — I suppose a number of the areas or markets, purposes the place you are seeing to proceed momentum on each elements of that?

John Kasel

Sure, so — sure, thanks for the query. The legacy facet has been very sturdy associated to The Nice Outdoor American Act, and we anticipate to that finish — we’re nonetheless seeing some exercise coming by that. So numerous that is nonetheless going within the state, Federal nationwide parks. That is been good enterprise for us. Very, very, very regular, very strong enterprise. However we’re getting excited, although, we’re seeing with the acquisition of VanHooseCo, it offers us the chance to hit adjoining areas that we weren’t serving with our legacy enterprise, that stepping into the shifting or securing order, if you’ll. A number of the different industrial sort merchandise that go underneath constructing cities or constructing communities, constructing residential areas, we now have that chance to deliver that into our present services, in addition to taking that geographic enlargement that we’re now seeing taking place within the Southeast, particularly within the Tennessee area between our two areas.

I mentioned earlier that the acquisition has met our expectations. And I positive imply that from many fronts, not simply from the P&L viewpoint, however from the cultural facet of the 2 companies coming collectively, and actually coming collectively as one firm.

We have achieved an awesome job and our group — respectively, our groups within the services have achieved an awesome job of actually driving the methods, in addition to driving the synergies of bringing that product within the market. So we’re trying for lots of the nice aspirational stuff that we have been speaking about relative to our progress. A great a part of it will be popping out of the Precast for years to come back. We’re very happy with that acquisition.

Operator

[Operator Instructions] And I am displaying no additional questions. I want to flip the decision again to John for closing remarks.

John Kasel

Thanks, Tanya. Thanks, all people, for becoming a member of us immediately. We’re glad to place a e-book finish to 2022. There’s been numerous heavy lifting that’s achieved by the oldsters right here in L.B. Foster Firm, and I respect your assist in us and endurance, if you’ll. However that is just the start of what we see to be a transition yr heading into some actual progress and prosperity for our shareholders on the market. So thanks on your assist. And due to all the workers at L.B. Foster making this occur. Take care and have an awesome day.

Operator

This concludes immediately’s convention name. Thanks for taking part. It’s possible you’ll now disconnect.