L.B. Foster Company (FSTR), a maker of train rails and precast concrete products, says it “erroneously excluded” more than $1 million in expenses from its Income Statement in the third quarter of 2023.

The error resulted in L.B. Foster overstating Operating Income 66%.

The company says that’s not material.

The error— as well as other immaterial errors— was corrected in the company’s latest quarterly filing.

Notably, cash bonuses and performance based equity awards for L.B. Foster executives were based, in part, on Adjusted EBITDA, which was inflated due to the error.

In the year the error was made, L.B. Foster executives were awarded more than $4 million in bonuses.

Six months after L.B. Foster’s executives and its auditor, Ernst & Young, told investors the company’s internal controls over financial reporting were effective, management acknowledged its controls are deficient.