Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their third quarter and year to date ended September 30, 2016.
Net sales for the third quarter of 2016 were
$247.8 million compared to $211.4 million for the third quarter of
2015, a 17% increase. Earnings for the third quarter of 2016
were $6.8 million or $0.30 per diluted share compared to $2.3
million or $0.10 per diluted share in the third quarter of 2015, an
increase of 200%.
Domestic sales increased 28% to $199.9 million
for the third quarter of 2016 compared to $156.3 million for the
third quarter of 2015. International sales decreased 13% to
$47.9 million for the third quarter of 2016 compared to $55.1
million for the third quarter of 2015.
Net sales for the first nine months of 2016 were
$820.9 million compared to $768.1 million for the first nine months
of 2015, a 7% increase. Earnings for the first nine months of
2016 were $42.8 million or $1.85 per diluted share compared to
$29.2 million or $1.26 per diluted share for the first nine months
of 2015, a 47% increase.
Domestic sales increased 20% to $676.3 million
for the first nine months of 2016 compared to $562.0 million for
the first nine months of 2015. International sales were
$144.6 million for the first nine months of 2016 compared to $206.1
million for the first nine months of 2015, a 30% decrease.
The Company’s domestic backlog increased 69% to
$325.6 million at September 30, 2016 from $193.1 million at
September 30, 2015. The international backlog at September
30, 2016 was $63.7 million compared to $58.7 million at September
30, 2015, an increase of 9%. Total backlog increased 55% to
$389.3 million at September 30, 2016 from $251.8 million at
September 30, 2015.
Consolidated financial information for the
quarter and nine months ended September 30, 2016 and additional
information related to segment revenues and profits are attached as
addenda to this press release.
Commenting on the announcement, Benjamin G.
Brock, President and Chief Executive Officer, stated, “We were
pleased to improve our earnings by 200% in the third quarter versus
the third quarter of last year. We were able to secure and
ship orders at a more profitable rate during the quarter mainly due
to favorable infrastructure and wood pellet equipment
activity.”
Mr. Brock continued, “Despite our strong overall
performance, we still face several challenges. Low oil and
natural gas prices have hurt our Energy Group sales. The
mining slowdown has hurt our Aggregate and Mining Group
sales. The strong U.S. Dollar continues to affect our ability
to export from our U.S. based operations. Nonetheless, our
year-to-date revenues are up 7% and our year-to-date earnings are
up 47% versus last year. These positive results are mainly
due to good domestic markets for our equipment targeted at the
infrastructure and wood pellet industries and execution of our
margin improvement plans at our operating subsidiaries. Finally, we
are also pleased to report that our backlog is up 55% versus last
year indicating continued strong demand for our products.”
Investor Conference Call and Web SimulcastAstec
will conduct a conference call on October 25, 2016, at 10:00 A.M.
Eastern Time to review its September 30, 2016 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, November 8, 2016 by dialing
(877) 481-4010, or (919) 882-2331 for international callers,
Account #286, Conference ID# 10099. 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, production and combustion 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 strong domestic demand, low oil prices,
the global mining slow down, and the strong U.S. Dollar.
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 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,
2015.
Astec Industries,
Inc. |
|
|
Condensed
Consolidated Balance Sheets |
|
|
(in
thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
Sept 30 |
Sept 30 |
|
|
|
2016 |
2015 |
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
52,474 |
|
$ |
13,985 |
|
|
|
Investments |
|
713 |
|
|
1,834 |
|
|
|
Receivables, net |
|
111,753 |
|
|
105,226 |
|
|
|
Inventories |
|
399,718 |
|
|
384,531 |
|
|
|
Prepaid expenses and other |
|
25,909 |
|
|
50,398 |
|
|
|
Total current assets |
|
590,567 |
|
|
555,974 |
|
|
|
Property and equipment, net |
|
178,167 |
|
|
170,508 |
|
|
|
Other assets |
|
93,105 |
|
|
60,805 |
|
|
|
Total assets |
$ |
861,839 |
|
$ |
787,287 |
|
|
|
Liabilities and equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable - trade |
$ |
53,496 |
|
$ |
46,406 |
|
|
|
Other current liabilities |
|
136,710 |
|
|
91,568 |
|
|
|
Total current liabilities |
|
190,206 |
|
|
137,974 |
|
|
|
Non-current liabilities |
|
26,702 |
|
|
36,919 |
|
|
|
Total equity |
|
644,931 |
|
|
612,394 |
|
|
|
Total liabilities and equity |
$ |
861,839 |
|
$ |
787,287 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc. |
|
|
Condensed
Consolidated Statements of Income |
|
|
(in thousands,
except per share data) |
|
|
(unaudited) |
|
|
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
Sept 30 |
Sept 30 |
|
2016 |
2015 |
2016 |
2015 |
Net sales |
$ |
247,752 |
|
$ |
211,350 |
|
$ |
820,868 |
|
$ |
768,141 |
|
Cost of sales |
|
192,363 |
|
|
166,212 |
|
|
620,071 |
|
|
594,724 |
|
Gross profit |
|
55,389 |
|
|
45,138 |
|
|
200,797 |
|
|
173,417 |
|
Selling, general, administrative & engineering expenses |
|
43,950 |
|
|
41,023 |
|
|
132,716 |
|
|
128,136 |
|
Income from operations |
|
11,439 |
|
|
4,115 |
|
|
68,081 |
|
|
45,281 |
|
Interest expense |
|
264 |
|
|
505 |
|
|
1,057 |
|
|
1,222 |
|
Other |
|
508 |
|
|
844 |
|
|
1,443 |
|
|
3,212 |
|
Income before income taxes |
|
11,683 |
|
|
4,454 |
|
|
68,467 |
|
|
47,271 |
|
Income taxes |
|
4,845 |
|
|
2,162 |
|
|
25,694 |
|
|
18,070 |
|
Net income attributable to controlling interest |
$ |
6,838 |
|
$ |
2,292 |
|
$ |
42,773 |
|
$ |
29,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
per Common Share |
|
|
|
|
Net
income attributable to controlling interest |
|
|
|
|
Basic |
$ |
0.30 |
|
$ |
0.10 |
|
$ |
1.86 |
|
$ |
1.27 |
|
Diluted |
$ |
0.30 |
|
$ |
0.10 |
|
$ |
1.85 |
|
$ |
1.26 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
Basic |
|
23,001 |
|
|
22,943 |
|
|
22,989 |
|
|
22,930 |
|
Diluted |
|
23,145 |
|
|
23,121 |
|
|
23,138 |
|
|
23,118 |
|
|
|
|
|
|
Astec Industries,
Inc. |
|
Segment Revenues and
Profits |
|
For the three months
ended September 30, 2016 and 2015 |
|
(in thousands) |
|
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
2016 Revenues |
|
109,227 |
|
|
85,819 |
|
|
52,706 |
|
|
- |
|
|
247,752 |
|
|
2015 Revenues |
|
85,625 |
|
|
80,549 |
|
|
45,176 |
|
|
- |
|
|
211,350 |
|
|
Change $ |
|
23,602 |
|
|
5,270 |
|
|
7,530 |
|
|
- |
|
|
36,402 |
|
|
Change % |
|
27.6 |
% |
|
6.5 |
% |
|
16.7 |
% |
|
- |
|
|
17.2 |
% |
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
24,929 |
|
|
20,935 |
|
|
9,473 |
|
|
52 |
|
|
55,389 |
|
|
2016 Gross Profit % |
|
22.8 |
% |
|
24.4 |
% |
|
18.0 |
% |
|
- |
|
|
22.4 |
% |
|
2015 Gross Profit |
|
16,104 |
|
|
19,226 |
|
|
9,794 |
|
|
14 |
|
|
45,138 |
|
|
2015 Gross Profit % |
|
18.8 |
% |
|
23.9 |
% |
|
21.7 |
% |
|
- |
|
|
21.4 |
% |
|
Change |
|
8,825 |
|
|
1,709 |
|
|
(321 |
) |
|
38 |
|
|
10,251 |
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
9,858 |
|
|
7,651 |
|
|
805 |
|
|
(11,610 |
) |
|
6,704 |
|
|
2015 Profit (Loss) |
|
2,116 |
|
|
3,790 |
|
|
1,941 |
|
|
(6,853 |
) |
|
994 |
|
|
Change $ |
|
7,742 |
|
|
3,861 |
|
|
(1,136 |
) |
|
(4,757 |
) |
|
5,710 |
|
|
Change % |
|
365.9 |
% |
|
101.9 |
% |
|
(58.5 |
%) |
|
(69.4 |
%) |
|
574.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30 |
|
|
|
|
2016 |
2015 |
Change $ |
|
|
Total
profit for all segments |
$ |
6,704 |
|
$ |
994 |
|
$ |
5,710 |
|
|
|
Recapture
of intersegment profit |
|
131 |
|
|
964 |
|
|
(833 |
) |
|
|
Net loss
attributable to non-controlling interest |
|
3 |
|
|
334 |
|
|
(331 |
) |
|
|
Net income attributable to controlling interest |
$ |
6,838 |
|
$ |
2,292 |
|
$ |
4,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc. |
|
Segment Revenues and
Profits |
|
For the nine months
ended September 30, 2016 and 2015 |
|
(in thousands) |
|
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
2016 Revenues |
|
414,817 |
|
|
277,393 |
|
|
128,658 |
|
|
- |
|
|
820,868 |
|
|
2015 Revenues |
|
336,768 |
|
|
285,790 |
|
|
145,583 |
|
|
- |
|
|
768,141 |
|
|
Change $ |
|
78,049 |
|
|
(8,397 |
) |
|
(16,925 |
) |
|
- |
|
|
52,727 |
|
|
Change % |
|
23.2 |
% |
|
(2.9 |
%) |
|
(11.6 |
%) |
|
- |
|
|
6.9 |
% |
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
101,349 |
|
|
72,224 |
|
|
27,069 |
|
|
155 |
|
|
200,797 |
|
|
2016 Gross Profit % |
|
24.4 |
% |
|
26.0 |
% |
|
21.0 |
% |
|
- |
|
|
24.5 |
% |
|
2015 Gross Profit |
|
74,292 |
|
|
70,182 |
|
|
28,912 |
|
|
31 |
|
|
173,417 |
|
|
2015 Gross Profit % |
|
22.1 |
% |
|
24.6 |
% |
|
19.9 |
% |
|
- |
|
|
22.6 |
% |
|
Change |
|
27,057 |
|
|
2,042 |
|
|
(1,843 |
) |
|
124 |
|
|
27,380 |
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
51,394 |
|
|
28,135 |
|
|
3,237 |
|
|
(40,745 |
) |
|
42,021 |
|
|
2015 Profit (Loss) |
|
29,472 |
|
|
25,441 |
|
|
2,805 |
|
|
(29,154 |
) |
|
28,564 |
|
|
Change $ |
|
21,922 |
|
|
2,694 |
|
|
432 |
|
|
(11,591 |
) |
|
13,457 |
|
|
Change % |
|
74.4 |
% |
|
10.6 |
% |
|
15.4 |
% |
|
(39.8 |
%) |
|
47.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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): |
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30 |
|
|
|
|
2016 |
2015 |
Change $ |
|
|
Total
profit for all segments |
$ |
42,021 |
|
$ |
28,564 |
|
$ |
13,457 |
|
|
|
Recapture
(elimination) of intersegment profit |
|
633 |
|
|
(32 |
) |
|
665 |
|
|
|
Net loss
attributable to non-controlling interest |
|
119 |
|
|
669 |
|
|
(550 |
) |
|
|
Net income attributable to controlling interest |
$ |
42,773 |
|
$ |
29,201 |
|
$ |
13,572 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc. |
|
|
Backlog by Segment |
|
|
September 30, 2016 and
2015 |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
2016 Backlog |
|
286,895 |
|
|
61,409 |
|
|
40,956 |
|
|
389,260 |
|
|
|
2015 Backlog |
|
145,073 |
|
|
68,110 |
|
|
38,592 |
|
|
251,775 |
|
|
|
Change $ |
|
141,822 |
|
|
(6,701 |
) |
|
2,364 |
|
|
137,485 |
|
|
|
Change % |
|
97.8 |
% |
|
(9.8 |
%) |
|
6.1 |
% |
|
54.6 |
% |
|
|
|
|
|
|
|
|
|
For Additional Information Contact:
Benjamin G. Brock
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
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