Greetings, and welcome to L.B. Foster’s Fourth Quarter 2016 Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to Judy Balog, Investor Relations for L.B. Foster. Thank you, Ms. Balog. You may now begin.

Thank you. Good evening, ladies and gentlemen. Thank you for joining us for L.B. Foster Company’s earnings conference call to review the company’s fourth quarter 2016 operating results. My name is Judy Balog and I’m the Investor Relations Manager of L.B. Foster. Hosting the call today is Mr. Robert Bauer, L.B. Foster’s President and CEO. Also on the call is Mr. David Russo, L.B. Foster’s Chief Financial Officer. We do have a fourth quarter presentation on our website under the Investor Relation’s tab for those who have online access. This evening, Dave will review the company’s fourth quarter financial results and certain full year results as well. Afterwards, Bob will review the company’s fourth quarter performance and provide an update on significant business issues, as well as company and market development. And then, we will open up the session for questions. During today’s call, our commentary and responses to your questions may contain forward-looking statements, including items such as the company’s outlook for our businesses and markets, cash flows, margins, operating costs, capital expenditures and other key business metrics, issues and projections. These statements involve a number of risks and uncertainties that could cause actual results to differ materially from statements we make today. These forward-looking statements reflect our opinions only as of the date of this presentation, and we undertake no obligation to revise or publicly release the results of any revisions to these statements in light of new information, except as required by law. All participants are encouraged to refer to L.B. Foster’s Annual Report on Form 10-K for the year ended December 31, 2016, as updated by subsequent Form 10-Qs or other pertinent items filed with the Securities and Exchange Commission for additional information regarding risk factors that may affect our results. In addition to the results provided in accordance with United States Generally Accepted Accounting Principles, our commentary includes certain non-GAAP statements, including EBITDA, adjusted EBITDA, and certain other metrics where we have added back the effect of impairment charges. Reconciliations of U.S. GAAP to non-GAAP measurements have been included within the company’s 8-K filing. Statements referring to EBITDA, adjusted EBITDA, as well as certain measures, excluding the impairment charges are considered non-GAAP measures, and while they are not intended to replace the presentation of our financial results in accordance with GAAP, the company believes that the presentation of these measures provides additional meaningful information for investors to facilitate the comparison of past, present, and forecasted operating results. Our accompanying earnings presentation reconciles these non-GAAP measures to the corresponding GAAP measure. With that, we will commence our business review discussion, and I will turn it over to Dave Russo.

Thank you, Judy. Net sales for the fourth quarter of 2016 were $106.6 million compared to $139.1 million in the prior year, a decrease of $32.6 million or 23.4%. Gross profit margin was 17.6%, a decrease of 380 basis points from the prior year quarter. We experienced margin compression in all three segments, but most notably in the Rail Products and Services segment. The margin decline in the Rail segment was driven principally by a $1.2 million transit-related warranty charge as well as inventory rationalization actions taken in the quarter. Moving on to expenses, consolidated selling and administrative expenses decreased by $4.5 million or 18.3% to $20 million, due to our ongoing cost reduction initiatives and strategic spending cuts totaling $4.2 million as well as to lower incentive costs of $1.5 million, which were partially offset by a $0.9 million charge related to the anticipated settlement of an employee dispute, an increased Union Pacific Rail Road litigation expenses of $0.3 million. As a percentage of sales SG&A increased by 118 basis points to 18.8%, driven by the lack of leverage from the decline in sales, partially offset by a healthy reduction in expenses. Amortization expense decreased by $1.5 million to $1.8 million in the fourth quarter due to the asset impairment charges taken in the second and third quarters as well as some small intangible assets being fully amortized. Interest expense increased by $1 million, due principally to increased rates as well as to the write-off of $0.4 million of deferred finance charges due to the fourth quarter amendment to the credit agreement. The company’s income tax expense for the fourth quarter was $36.6 million. The company recorded a valuation allowance of $29.7 million. The company also recorded deferred U.S. income taxes and foreign withholding taxes of $7.9 million in…

Thank you, Dave. Hello, everyone. Thank you for joining us today. As I make my remarks, there are two key messages that will recur as a result of their impact on current results, but more so from their impact associated with future expectations. The first message is centered around the cost actions we’ve taken throughout 2016 aimed at aligning cost with lower volume and creating a cost structure that puts us in a position to leverage added sales volume as markets recover. The second message is related to a recovering market outlook. Centered around market dynamics which vary across the markets we serve, but generally speaking, reflect more signs of strengthening, often associated with an improving commodity cycle. Turning to the results, as we wrapped up the year, our final quarter had some clear challenges, as sales volume reached the low point of the year. But we also accomplished a great deal in completing numerous actions related to our cost cutting goals. The fourth quarter year-over-year sales decline was 23%, however the year-over-year change includes the impact of backlog reduction that took place in the fourth quarter of 2015. When comparing orders, our year-over-year decline in Q4 was only 1%. Additional cost cutting actions in the fourth quarter are putting us in a better position to deal with lower volume, however the results are not quite evident in Q4 EBITDA, as more than $2 million of one-time charges impacted gross profit and SG&A. We’ve really made progress reducing SG&A, which was down $4.5 million from the prior year quarter including severance cost that were offset by reductions in company incentive costs. So when we look at the full year, this is obviously a very challenging year as we’ve reacted to weakness that resulted in our sales, full-year sales declining by…

Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] And our - excuse me, our first question is from Jeremy Javidi of Columbia Threadneedle. Please go ahead.

Thank you for your time, and good afternoon, everybody. Just a clarification for the first quarter outlook and each trajectory for the next couple of quarters. I recognize the year-over-year comparisons may still be difficult, but sequentially it sounds like you had posted some fairly good numbers to report. When I look at it sequentially from fourth quarter to first quarter 2017, is it fair to say that the expected sales level will be roughly in line or potentially up?

All right, Jeremy. Are you still there?

Yes. Can you hear me?

Okay, yes. I mean, it looked like we had an interruption in our conference call. So, what I was talking mostly about was a sequential change has taken place from Q3 to Q4, which has given us some indication that things seem to be strengthening. And as I mentioned, I think bookings in Q1 could start to look better than they have looked. But in terms of getting sales out the door, there may not be much of a sequential increase from Q4 to Q1. So it’s better to think of that as more in line than seeing an improvement. And a lot of that has to do with the fact that we just don’t have customers that want to take a lot of deliveries in Q1, and that’s what the seasonality comes from that construction environment out there where there isn’t as much that happens during that quarter.

That makes a lot of sense. Thank you.

Yes.

Thank you. [Operator Instructions] Okay. It doesn’t appear that we have any further questions at this time. I would like to turn the conference back over to management for closing remarks.

Beautiful. Thank you, Manny. Appreciate everyone joining us today. We’ll wrap it up then. Hopefully, the message was clear, and we look forward to talking with you next quarter. Thank you very much. Bye, bye.

Thank you. Ladies and gentlemen, this does conclude today’s teleconference. You may disconnect your lines at this time. And thank you for your participation.