Greetings and welcome to the L.B. Foster's Third Quarter 2018 Results Conference Call. At this time, all participants are in listen-only mode, a brief question-and-answer session will follow the formal presentation [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Judy Balog. Please go ahead.

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 third quarter 2018 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. James Maloney, L.B. Foster's CFO and Treasurer. In addition to our press release, we have a third quarter presentation on our Website under the Investor Relation's tab for those who have online access. This evening, Jim will review the company's third quarter financial results. Afterwards, Bob will review the company's third quarter performance and provide an update on significant business issues and market developments. We will then open 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 securities laws. All participants are encouraged to refer to L.B. Foster's Annual Report on Form 10-K for the year ended December 31, 2017, as updated by subsequent 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 non-GAAP EBITDA statements. A reconciliation of net income to non-GAAP EBITDA has been included within the company's 8-K filings. Our accompanying earnings presentation also includes statements referring to non-GAAP, segment gross profit. Segment gross profit allows users to understand the operational performance of our reportable segments, provides greater comparability to other registrants with similar businesses and avoids possible non-comparability as reportable segments, pre tax profit level resulting from our specific corporate cost allocations and facilitates a clearer market based perspective on the strength or weakness of our reportable segments in their markets to better aid in investment decisions. Statements referring to EBITDA and segment gross profit 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 this non-GAAP measure to the corresponding GAAP measure. With that, we will commence our financial review discussion, and I will turn it over to Jim.

Thank you, Judy. Net sales for the 2018 third quarter were $167 million compared to $131 million in the prior year quarter, an increase of $36 million or 27.1%. The 27.1% third quarter sales increase was due to improvements within each of our three reporting segments. Rail Products and Services segment increased by 36.1%, Tubular and Energy Services segment increased by 35.5% and Construction Products increased by 6.2%. The rail sales improvement of $22 million or 36.1% was provided by both our rail technologies and our rail products businesses. Rail technologies saw sales increase by 36.8% over the prior year, primarily from expanding transit projects. Our rail products sales increased 35.6% over the prior year period as North American freight activity remained strong during the quarter. The Tubular and Energy Services sales increased by $11 million or 35.5% was driven by improvements in each of our business units within the segment compared to the prior year period. Our third quarter Construction segment sales increased from the prior year by $2 million or 6.2%. The increase was primarily due to the piling division as an increase in demand led to a year-over-year sales increase of 29%. This increase was partially offset by a 22.6% reduction in Fabricated Bridge sales and a 1.3% decrease over the prior year quarter in Precast Concrete product sales. As a percentage of third quarter 2018 sales, rail accounted for 50.6%, construction was 24.9%, and tubular and energy services was 24.5%. Now looking at gross profit; consolidated gross profit increased $3 million over the prior year quarter to $30 million. The increase was primarily attributable to our tubular and rail segments, which increased 42.6% and 19.3% respectively. Those increases were partially offset by a reduction of 27.7% in construction. During the third quarter 2018, we recorded a…

Thank you, Jim, and hello everyone. There are a lot of very encouraging trends in this quarter's results, and more importantly in the year to-date results. We continue to report solid growth in sales. There is continued profit improvement including substantial net income improvement or maintaining good control on costs. Our interest expense is declining as well, and working capital management and cash flow results were very good. So overall there are a lot of results going in the right direction. However, there is one area, gross profit margins that could've been better. We expected sales volume in the third quarter to be strong. We ended the quarter with a very solid backlog standing at $231 million, and our operations did a great job to boost sales volume 27% over this time a year ago. Bookings in the third quarter were even more impressive. At $186 million or 28% over prior year the momentum in the market continue to strengthen. Typically, we see orders begin to moderate through the third quarter as we approach the weaker seasonal period in the year. However, the order pace has remain strong this year. With third quarter ending backlog of $252 million, an increase of $20 million sequentially from the second quarter, we have one of the best backlog positions that we've had in some time. All three reporting segments have contributed to the company’s year to-date bookings growth. Our construction segment won some significant projects in the third quarter to bring year to-date bookings up 29%, the piling division had a big quarter as our success rate improved on winning key projects and markets where we've increased our focus. Orders in our Bridge decking division were also very good in the quarter despite not having a very large project to point to. The…

Okay. Thank you, operator. Well, thank you everyone for joining us. I hope you’ll agree that we had a lot of favorable items in this quarter's results. We got a strong backlog going into the fourth quarter. So we’re very much looking forward to closing the year out. And we hope you'll join us next quarter for our call once we conclude that quarter. Thank you very much.

Thank you. This concludes today’s conference. You may disconnect your line at this time. And thank you for your participation.