CHATTANOOGA, Tenn., April 22, 2014 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their first quarter ended March 31, 2014.
Net sales for the first quarter of 2014 were $238.7 million compared to $247.8 million for the first quarter of 2013, a 4% decrease. Earnings for the first quarter of 2014 were $9.5 million or $0.41 per diluted share compared to $13.2 million for the first quarter of 2013 or $0.57 per diluted share, a decrease of 28% per diluted share.
Domestic sales increased 8% to $175.5 million for the first quarter of 2014 from $161.9 million for the first quarter of 2013. International sales were $63.2 million for the first quarter of 2014 compared to $85.9 million for the first quarter of 2013, a decrease of 26%.
The Company's backlog increased 8% from $276.5 million at March 31, 2013 to $299.6 million at March 31, 2014. The domestic backlog increased 18% from $167.3 million at March 31, 2013 to $196.9 million at March 31, 2014. The international backlog at March 31, 2014 was $102.7 million, a 6% decrease from the March 31, 2013 international backlog of $109.2 million.
Consolidated financial information for the first quarter ended March 31, 2014 and additional information related to segment revenues and profits are attached as addenda to this press release.
As previously discussed in the Company's annual report on Form 10-K for the year ended December 31, 2013, due to the recent reallocation of certain product lines between some of the Company's subsidiaries, the Company has been reevaluating its reportable segments. This process has now been completed and the composition of the Company's reportable segments has been changed. Recast historical segment information is included in the financial information attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, "We are pleased with our growth in domestic revenues compared to last year although we continue to experience headwinds in our international sales efforts driven by the strong dollar and weakness in certain markets like Canada and Australia. Although total sales decreased slightly we held our gross margin steady which is a testament to our focus on lean manufacturing and cost management. Our presence at ConExpo in early March added $4 million to our S,G,A&E expenses for the quarter, however, we were pleased by the strong attendance in our booth and the interactions we had with customers."
Mr. Brock continued, "With the April 1st addition of Telestack headquartered in Omagh, Northern Ireland, we have demonstrated our commitment to further global expansion in our core products to better serve our target industries of Infrastructure, Aggregate and Mining, and Energy. Telestack's quality and customer service make it a natural fit for Astec. We expect them to be immediately accretive to earnings and to positively reinforce our backlog and outlook for the remainder of the year."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 22, 2014, 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 6, 2014 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13580080. 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. is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. Astec's manufacturing operations are divided into three primary business segments: road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels, biomass production, 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 its backlog and the effects of general economic and political uncertainty on our business. 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, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, 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, 2013.
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Astec Industries, Inc. |
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Consolidated Balance Sheets |
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(in thousands) |
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(unaudited) |
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Mar 31 |
Mar 31 |
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2014 |
2013 |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ 44,969 |
$ 73,175 |
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Investments |
1,462 |
1,573 |
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Receivables, net |
109,080 |
104,599 |
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Inventories |
361,209 |
326,068 |
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Prepaid expenses and other |
28,717 |
25,159 |
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Total current assets |
545,437 |
530,574 |
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Property and equipment, net |
187,895 |
186,192 |
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Other assets |
41,372 |
40,890 |
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Total assets |
$ 774,704 |
$ 757,656 |
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Liabilities and equity |
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Current liabilities |
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Accounts payable - trade |
$ 59,364 |
$ 50,781 |
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Other current liabilities |
93,596 |
111,451 |
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Total current liabilities |
152,960 |
162,232 |
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Non-current liabilities |
32,490 |
31,999 |
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Total equity |
589,254 |
563,425 |
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Total liabilities and equity |
$ 774,704 |
$ 757,656 |
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Astec Industries, Inc. |
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Consolidated Statements of Income |
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(in thousands, except per share data) |
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(unaudited) |
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Three Months Ended |
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Mar 31 |
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2014 |
2013 |
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Net sales |
$ 238,673 |
$ 247,833 |
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Cost of sales |
181,916 |
189,266 |
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Gross profit |
56,757 |
58,567 |
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Selling, general, administrative & engineering expenses |
43,424 |
40,367 |
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Income from operations |
13,333 |
18,200 |
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Interest expense |
73 |
70 |
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Other |
812 |
672 |
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Income before income taxes |
14,072 |
18,802 |
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Income taxes |
4,527 |
5,631 |
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Net income attributable to controlling interest |
$ 9,545 |
$ 13,171 |
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Earnings per Common Share |
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Net income attributable to controlling interest |
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Basic |
$ 0.42 |
$ 0.58 |
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Diluted |
$ 0.41 |
$ 0.57 |
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Weighted average common shares outstanding |
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Basic |
22,786 |
22,723 |
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Diluted |
23,102 |
23,080 |
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Astec Industries, Inc. |
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Segment Revenues and Profits |
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For the three months ended March 31, 2014 and 2013 |
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(in thousands) |
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(unaudited) |
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Infrastructure Group |
Aggregate and Mining
Group |
Energy Group |
Corporate |
Total |
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2014 Revenues |
98,791 |
93,108 |
46,774 |
-- |
238,673 |
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2013 Revenues |
109,320 |
90,762 |
47,751 |
-- |
247,833 |
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Change $ |
(10,529) |
2,346 |
(977) |
-- |
(9,160) |
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Change % |
(9.6%) |
2.6% |
(2.0%) |
-- |
(3.7%) |
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2014 Gross Profit |
22,679 |
23,424 |
10,642 |
12 |
56,757 |
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2014 Gross Profit % |
23.0% |
25.2% |
22.8% |
-- |
23.8% |
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2013 Gross Profit |
26,685 |
23,040 |
8,844 |
(2) |
58,567 |
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2013 Gross Profit % |
24.4% |
25.4% |
18.5% |
-- |
23.6% |
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Change |
(4,006) |
384 |
1,798 |
14 |
(1,810) |
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2014 Profit (Loss) |
8,796 |
9,101 |
1,923 |
(9,117) |
10,703 |
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2013 Profit (Loss) |
12,878 |
9,057 |
1,191 |
(9,260) |
13,866 |
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Change $ |
(4,082) |
44 |
732 |
143 |
(3,163) |
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Change % |
(31.7%) |
0.5% |
61.5% |
1.5% |
(22.8%) |
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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): |
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Three months ended March 31 |
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2014 |
2013 |
Change $ |
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Total profit for all segments |
$ 10,703 |
$ 13,866 |
$ (3,163) |
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Elimination of intersegment profit |
(1,156) |
(615) |
(541) |
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Net income attributable to non-controlling interest |
(2) |
(80) |
78 |
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Net income attributable to controlling interest |
$ 9,545 |
$ 13,171 |
$ (3,626) |
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Astec Industries, Inc. |
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Backlog by Segment |
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March 31, 2014 and 2013 |
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(in thousands) |
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(Unaudited) |
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Infrastructure Group |
Aggregate and Mining
Group |
Energy Group |
Total |
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2014 Backlog |
$ 144,598 |
$ 98,903 |
$ 56,135 |
$ 299,636 |
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2013 Backlog |
120,244 |
93,867 |
62,414 |
276,525 |
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Change $ |
24,354 |
5,036 |
(6,279) |
23,111 |
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Change % |
20.3% |
5.4% |
(10.1%) |
8.4% |
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Astec Industries, Inc. |
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Segment Revenues and Profits |
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2013 |
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(in thousands) |
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(unaudited) |
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Infrastructure Group |
Aggregate and Mining
Group |
Energy Group |
Corporate |
Total |
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Q2 Revenues |
103,754 |
99,884 |
44,489 |
-- |
248,127 |
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Q3 Revenues |
83,319 |
79,792 |
50,066 |
-- |
213,177 |
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Q4 Revenues |
102,006 |
80,076 |
41,779 |
-- |
223,861 |
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Q2 Gross Profit |
19,514 |
25,615 |
10,311 |
2 |
55,442 |
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Q2 Gross Profit % |
18.8% |
25.6% |
23.2% |
-- |
22.3% |
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Q3 Gross Profit |
18,552 |
19,584 |
7,667 |
(16) |
45,787 |
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Q3 Gross Profit % |
22.3% |
24.5% |
15.3% |
-- |
21.5% |
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Q4 Gross Profit |
20,676 |
19,610 |
7,103 |
(66) |
47,323 |
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Q4 Gross Profit % |
20.3% |
24.5% |
17.0% |
-- |
21.1% |
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Q2 Profit (Loss) |
6,103 |
11,141 |
2,235 |
(8,190) |
11,289 |
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Q3 Profit (Loss) |
5,919 |
6,765 |
456 |
(5,935) |
7,205 |
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Q4 Profit (Loss) |
7,914 |
6,068 |
123 |
(6,980) |
7,125 |
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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): |
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Three months ended
June 30 |
Three months ended
September 30 |
Three months ended
December 31 |
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2013 |
2013 |
2013 |
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Total profit for all segments |
$ 11,289 |
$ 7,205 |
$ 7,125 |
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Elimination of intersegment profit |
(136) |
(678) |
1,159 |
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Net income attributable to non-controlling interest |
(61) |
(13) |
(19) |
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Net income attributable to controlling interest |
$ 11,092 |
$ 6,514 |
$ 8,265 |
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Astec Industries, Inc. |
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Backlog by Segment |
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2013 |
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(in thousands) |
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(Unaudited) |
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Infrastructure Group |
Aggregate and Mining
Group |
Energy Group |
Total |
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Q2 Backlog |
$ 99,605 |
$ 88,706 |
$ 52,312 |
$ 240,623 |
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Q3 Backlog |
114,138 |
69,583 |
44,816 |
228,537 |
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Q4 Backlog |
137,119 |
105,022 |
48,101 |
290,242 |
CONTACT: For Additional Information Contact:
Benjamin G. Brock
President and Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: bbrock@astecindustries.com
or
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
