Loading, Please Wait...

CST: 22/05/2019 20:22:16   

Astec Industries Reports First Quarter 2019 Results

29 Days ago

CHATTANOOGA, Tenn., April 23, 2019 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their first quarter ended March 31, 2019. 

Net sales for the first quarter of 2019 were $325.8 million compared to $325.5 million for the first quarter of 2018.  Domestic sales decreased 2.7% to $262.8 million for the first quarter of 2019 from $270.1 million for the first quarter of 2018.  International sales increased 13.7% to $63.0 million for the first quarter of 2019 from $55.4 million for the first quarter of 2018. 

Earnings for the first quarter of 2019 were $14.3 million or $0.63 per diluted share, compared to $20.3 million or $0.87 per diluted share in the first quarter of 2018, a decrease in earnings per share of 27.6%.  As adjusted for the impact of pellet plant activity in the first quarter of 2018, earnings per diluted share decreased $0.33 or 34.4%.

Commenting on the announcement of the quarterly results, Richard J. Dorris, Interim Chief Executive Officer, stated, “We are disappointed that our performance in the first quarter did not meet our expectations.  All three segments experienced pricing pressure from competitors in a tighter market and temporary weather related shutdowns at seven of our subsidiaries impacted our ability to build and ship equipment.” 

Mr. Dorris continued, “Lower than expected volumes impacted our gross margins at several of our subsidiaries.  As we’ve previously discussed, our SGA&E is also temporarily at a higher run rate than normal due to our ongoing strategic sourcing project.  Bookings were also affected by the weather as customers were unable to work in unusually wet or icy conditions in much of the U.S.”

The Company’s backlog at March 31, 2019 was $236.5 million, a decrease of $208.4 million or 46.8% compared to the March 31, 2018 backlog of $444.9 million.  Domestic backlog decreased 52.6% to $161.8 million at March 31, 2019 from $341.1 million at March 31, 2018.  The international backlog at March 31, 2019 was $74.7 million compared to $103.8 million at March 31, 2018, a decrease of 28.0%.  Adjusted for pellet plant backlog included in the March 31, 2018 backlog, the Company’s backlog decreased $143.8 million or 37.8%.

Mr. Dorris concluded, “While we are paying close attention to the decrease in our backlog, we note that we experienced historical high points in our backlogs in the first quarter of 2018.  We have already made a number of moves to adjust our capacity and, while we’ve seen some positive developments in recent order intake, we will continue to monitor the backlog and make adjustments where necessary.” 

Consolidated financial information for the first quarter ended March 31, 2019 and additional information related to segment revenues and profits are attached as addenda to this press release.

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on April 23, 2019, at 10:00 A.M. Eastern Time to review its first quarter results as well as current business conditions.  The number to call for this interactive teleconference is (877) 407-9210.  International callers should dial (201) 689-8049.  Please reference Astec Industries.

The Company will also provide an online Web simulcast and rebroadcast of the conference call.  The live broadcast of Astec’s conference call will be available online at the Company’s website:  www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, May 7, 2019 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Replay ID# 47335.  A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 business days after the call.

Astec Industries, Inc., (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling and concrete production. Astec's manufacturing operations are divided into three primary business segments: road building, (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels and water drilling equipment (Energy Group).

The information contained in this press release contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the effects on the Company from (i) product demand and pricing pressure, (ii) the effect of its strategic sourcing project (iii) efforts to adjust manufacturing capacity, and (iv) its backlog activity. These forward-looking statements reflect management’s expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements.  These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated.  Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements.  Important factors that could cause future events or actual results to differ materially include:  general uncertainty in the economy, oil, gas and liquid asphalt prices, rising steel prices, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, production capacity, general business conditions in the industry, demand for the Company’s products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity, tax rates and the impact of future legislation thereon, and those other factors listed from time to time in the Company’s reports filed with the Securities and Exchange Commission, including but not limited to the Company’s annual report on Form 10-K for the year ended December 31, 2018. 

For Additional Information Contact:

David C. Silvious
Vice President and Chief Financial Officer
Phone: (423) 899-5898 
Fax: (423) 899-4456 
E-mail: dsilvious@astecindustries.com
Or

Stephen C. Anderson 
Vice President, Director of Investor Relations & Corporate Secretary 
Phone: (423) 899-5898 
Fax: (423) 899-4456 
E-mail: sanderson@astecindustries.com

     
Astec Industries, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
  Mar 31 Mar 31
    2019     2018  
Assets    
Current assets    
Cash and cash equivalents $   28,606   $   41,940  
Investments     1,589       1,751  
Receivables, net     137,211       153,854  
Inventories     366,835       411,159  
Prepaid expenses and other     41,832       23,533  
Total current assets     576,073       632,237  
Property and equipment, net     192,143       189,287  
Other assets     104,089       96,841  
Total assets $   872,305   $   918,365  
Liabilities and equity    
Current liabilities    
Accounts payable - trade $   76,451   $   68,833  
Other current liabilities     114,342       117,609  
Total current liabilities     190,793       186,442  
Long-term debt, less current maturities     56,629       1,357  
Non-current liabilities     25,617       22,490  
Total equity     599,266       708,076  
Total liabilities and equity $   872,305   $   918,365  
     
     
     
     
Astec Industries, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended
  Mar 31
    2019     2018  
Net sales $   325,780   $   325,453  
Cost of sales     249,254       247,448  
Gross profit     76,526       78,005  
Selling, general, administrative & engineering expenses     58,348       52,078  
Income from operations     18,178       25,927  
Interest expense     (648 )     (150 )
Other     525       512  
Income before income taxes     18,055       26,289  
Income taxes     3,781       6,022  
Net income attributable to controlling interest  $   14,274   $   20,267  
     
     
     
     
Earnings per Common Share    
Net income attributable to controlling interest    
  Basic $   0.63   $   0.88  
  Diluted $   0.63   $   0.87  
     
     
Weighted average common shares outstanding    
  Basic     22,498       23,045  
  Diluted     22,646       23,236  
     

 

Astec Industries, Inc.  
Segment Revenues and Profits  
For the three months ended March 31, 2019 and 2018  
(in thousands)  
(unaudited)  
  Infrastructure Group Aggregate and Mining
Group
Energy Group Corporate Group Total  
2019 Revenues     154,994       106,531       64,255       -      325,780    
2018 Revenues     147,094       119,067       59,292       -      325,453    
Change $     7,900       (12,536 )     4,963       -      327    
Change %   5.4 %   (10.5 %)   8.4 %     -    0.1 %  
             
2019 Gross Profit     35,506       25,545       15,479       (4 )   76,526    
2019 Gross Profit %   22.9 %   24.0 %   24.1 %     -    23.5 %  
2018 Gross Profit     33,280       29,289       15,286       150     78,005    
2018 Gross Profit %   22.6 %   24.6 %   25.8 %     -    24.0 %  
Change     2,226       (3,744 )     193       (154 )   (1,479 )  
             
2019 Profit (Loss)     15,238       8,678       3,394       (13,469 )   13,841    
2018 Profit (Loss)     14,852       13,110       4,611       (11,248 )   21,325    
Change $     386       (4,432 )     (1,217 )     (2,221 )   (7,484 )  
Change %   2.6 %   (33.8 %)   (26.4 %)   (19.7 %) (35.1 %)  
             
             
Segment revenues are reported net of intersegment revenues.  Segment gross profit is net of profit on intersegment    
revenues.  A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):  
             
    Three months ended March 31    
      2019     2018   Change $    
Total profit for all segments   $   13,841   $   21,325   $   (7,484 )    
Recapture (elimination) of intersegment profit     377       (1,109 )     1,486      
Net loss attributable to non-controlling interest     56       51       5      
Net income attributable to controlling interest  $   14,274   $   20,267   $   (5,993 )    
             
             
             
             
Astec Industries, Inc.    
Backlog by Segment    
March 31, 2019 and 2018    
(in thousands)    
(unaudited)    
  Infrastructure Group Aggregate and Mining
Group
Energy Group Total    
2019 Backlog     80,553       103,640       52,355       236,548      
2018 Backlog     230,649       138,687       75,591       444,927      
Change $     (150,096 )     (35,047 )     (23,236 )     (208,379 )    
Change %   (65.1 %)   (25.3 %)   (30.7 %)   (46.8 %)    
2018 Pellet Backlog     64,600       -        -        64,600      
2018 Backlog as Adjusted     166,049       138,687       75,591       380,327      
As Adjusted Change $     (85,496 )     (35,047 )     (23,236 )     (143,779 )    
As Adjusted Change %   (51.5 %)   (25.3 %)   (30.7 %)   (37.8 %)    
             
             
             
             
Astec Industries, Inc.          
Reconciliation of GAAP EPS to EPS As Adjusted          
For the three months ended March 31, 2018          
(unaudited)          
Fully Diluted EPS $ 0.87            
EPS impact of Pellet Activity     0.09            
EPS As Adjusted $ 0.96            


Is your business listed correctly on America’s largest city directory network of 1,000 portals?