Federal Signal Investor Presentation Deck
Strong Financial Position Supports Priority-Driven Long-Term
Capital Allocation
In October 2022, executed 5-year, $800 M revolving credit facility, with flexibility to increase further for acquisitions; At the end of Q2
2023, net debt leverage remained low, with ~$381 M of availability under credit facility
Reinvest in the
Business
Acquisitions
Dividend Policy
Share
Repurchases
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Purchased Elgin, IL manufacturing facility in Q4 2021 (~$20 M) and University Park, IL
manufacturing facility in Q1 2022 (~$28 M)
Other cap ex of ~$25 M in 2022, including investments in machinery and equipment to support
automating and insourcing opportunities; expect cap ex of $27 M - $30 M in 2023
Innovation R&D efforts target new and updated products
Completed acquisition of TowHaul Corporation in October 2022 for initial payment of ~$43 M
Completed acquisition of Blasters, Inc. in January 2023 for initial payment of ~$13 M
Completed acquisition of Trackless in April 2023 for initial purchase price of ~$43 M
Focused primarily on acquisitions that fit closely within our existing products and services,
manufacturing competencies, channels and customers
Provide a competitive dividend yield while funding business growth
Paid increased dividend of $0.10 per share in Q2 2023, up from $0.09 in Q1 2023; recently
declared similar dividend for Q3 2023
Paid dividends of $6.1 M in Q2 2023 ($21.8 M in full-year 2022)
Opportunistic share buybacks as a return of cash to our shareholders
Share repurchases of $16.1M in 2022; ~$59 M of repurchase authorization remaining under
current programs (~2% of market cap)
Cash Deployment
(2020-22)¹
Dividends
15%
Share
Repurchases
11%
Acquisitions
45%
Capex
29% 2
1) Chart depicts cumulative use of cash for each category,
relative to the total cash used on all four activities, for the
period 2020-2022; excludes investment in rental fleet,
which is reported as part of operating cash flows
2) Includes purchase of 2 manufacturing facilities for ~$48 M
(combined)
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