EX-99.2 9 d281202dex992.htm EX-99.2

EX-99.2

Federal Signal Q4 2011 Earnings Call

Dennis Martin, President & CEO

Bill Barker, Chief Financial Officer

March 14, 2012

Exhibit 99.2

2

Q4 Headlines

Orders Remain Strong, Backlog Builds 

Revenue +20%

Op. Income, ex Charges, Increased $12.6 Million

Q4 EPS ex Charges = $0.06

Refinanced Debt in February 2012

        ORDERS

          BACKLOG

($ Millions)

Q4

LY

vs. LY

12/31

LY

vs. LY

ESG

$146

$84

+74%

$184

$83

+121%

Bronto

$29

$29

Flat

$80

$57

+40%

SSG

$64

$52

+23%

$32

$18

+78%

FSTech

$109

$22

+404%

$131

$59

+124%

Total

$349

$187

+87%

$426

$217

+97%

3

Q4 Income Comparison –

FSS 

Q4

Q4

Growth/

$ Millions

2011

Margin

2010

Margin

Sales

223.3

186.7

     +20%

Gross Profit

55.5

25%

48.2

26%

SG&A

45.6

20%

50.9

27%

Op Income ex-Charges

9.9

4%

(2.7)

+$12.6

Impairment

22.2

78.9

Restructuring

1.0

Op Income

(12.3)

(82.7)

Interest Expense

4.5

1.8

Pretax Income

(16.6)

(85.0)

Tax (Expense)/Benefit

(0.2)

(73.4)

Income from Cont. Ops

(16.8)

(158.4)

EPS, Cont Ops

($0.27)

($2.55)

4

Q4 Results vs. LY

-

Excludes restructuring/impairment charges

Q4

Q4

2011

Margin

2010

Margin

B/(W)

ESG

Orders

146.2

84.2

74%

Sales

93.2

71.9

30%

Op Income

6.7

7.2%

2.0

2.8%

Bronto

Orders

28.8

28.8

0%

Sales

41.4

34.5

20%

Op Income

4.9

11.8%

4.4

12.7%

SSG

Orders

64.4

52.3

23%

Sales

60.4

54.9

10%

Op Income

5.6

9.3%

7.2

13.1%

FSTech

Orders

109.2

21.7

403%

Sales

28.3

25.4

11%

Op Income

(1.4)

-4.9%

(2.1)

-8.2%

Corp. Exp

(6.0)

(14.5)

5

Balance Sheet

December

Sept

June

March

December

$ Millions

2011

2011

2011

2011

2010

Cash

9.5

13.2

14.3

12.7

62.1

Other Current Assets

264.8

243.7

255.6

257.7

237.9

PP&E, Net

62.2

63.4

63.6

64.4

63.2

Goodwill & Other

366.7

393.6

402.4

403.6

398.2

  Mfg Assets Subtotal

703.2

713.9

735.8

738.4

761.4

Net Asset of Disc Ops

3.5

2.9

3.0

2.9

3.1

  Net Assets

706.7

716.8

738.8

741.3

764.5

Current Liabilities

138.3

121.3

126.9

128.8

136.6

Total Debt

222.3

227.9

233.9

242.2

262.4

Deferred Taxes & Other

159.1

127.1

129.4

131.2

126.4

Net Liabilities, Disc. Ops

12.3

13.5

14.3

13.8

18.2

Equity

174.7

227.0

234.3

225.3

220.9

  Liabilities & Equity

706.7

716.8

738.8

741.3

764.5

Net Debt

212.8

214.7

219.6

229.5

200.3

Debt/Capital

56%

50%

50%

52%

54%

Net Debt/Capital

55%

49%

48%

50%

48%

6

Cash Flow Summary –

Q4 and YTD

Q4 2011

YTD 2011

Operating Cash Flow:

Income (Loss) from Continuing Ops

(16.8)

(14.4)

Depreciation & Amortization

5.5

22.5

Stock-based Comp. Expense

0.4

2.0

Primary Working Capital (Q4 AR +$25MM)

(15.4)

(18.8)

Pension Contributions

(1.4)

(3.8)

Goodwill Impairment

22.2

20.6

Accrued Compensation

3.8

1.0

Deferred Taxes/Timing/Other

6.5

0.8

Operating Cash Flow

4.8

9.9

Capital Expenditures, net

(2.7)

(13.8)

Dividends

-

(3.7)

Other

0.2

0.1

Net Cash Flow before Financing

2.3

(7.5)

Cash Flow from Disc. Ops

(1.3)

(3.6)

7

Debt Facilities

$100MM Asset-Based Revolving Credit Facility

Current Interest Rate: LIBOR + Approx. 2.5%

Maturity: 5 years

Secured by Domestic Inventories & Receivables

Current Borrowing Base  =     $ 76MM  (Updated monthly)

$215MM Term Loan

5 Year Term

Initial Interest Rate = 12.0% (LIBOR + 10%; 2% LIBOR Floor)

2% Closing Fee

Ability to repay immediately at par with proceeds from certain asset sales

Prepayable after one year at 2.75% premium (drops to 2.0% after year 2)

Federal Signal Q4 2011 Earnings Call

Dennis Martin, President & CEO

Bill Barker, Chief Financial Officer

March 14, 2012