Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the fourth quarter and full year ended December 31,
2023.
"Our solid fourth quarter results conclude a
year of progress on our key strategic and operational initiatives.
We were able to deliver full-year net sales growth, continued
operating margin enhancement and increased earnings per share,"
said Jaco van der Merwe, Chief Executive Officer. "While total net
sales for the quarter were down slightly in Materials Solutions and
international markets, we were pleased to deliver net sales growth
in Infrastructure Solutions due to strength in parts and equipment
sales for asphalt and concrete plants. Our backlog remains healthy
with positive momentum in implied orders and conversion of backlog
to sales. Gross margin expanded in excess of 600 basis points as we
continue to leverage our OneASTEC operating model and remain laser
focused on improved execution." Mr. van der Merwe continued,
"Looking ahead, we anticipate continued strong demand for asphalt
road building and concrete production equipment as spending from
the multi-year Federal Highway Bill begins to accelerate. We
continue to execute our Simplify, Focus and Grow strategy, with
emphasis on top line growth through expansion of our aftermarket
and exciting new products, continued margin improvements, and free
cash flow generation through working capital improvements. The
progress made in 2023 is a testament to the dedication and hard
work of our employees. We are confident we have the right
foundation in place to capitalize on the opportunities ahead."
(in millions, except
per share and percentage data) |
4Q 2023 |
|
4Q 2022 |
|
Change |
|
FY 2023 |
|
FY 2022 |
|
Change |
Net sales |
$ |
337.2 |
|
|
$ |
349.9 |
|
|
(3.6 |
)% |
|
$ |
1,338.2 |
|
|
$ |
1,274.5 |
|
|
5.0 |
% |
Domestic sales |
|
286.1 |
|
|
|
282.0 |
|
|
1.5 |
% |
|
|
1,083.4 |
|
|
|
1,014.3 |
|
|
6.8 |
% |
International sales |
|
51.1 |
|
|
|
67.9 |
|
|
(24.7 |
)% |
|
|
254.8 |
|
|
|
260.2 |
|
|
(2.1 |
)% |
Backlog |
|
569.8 |
|
|
|
912.7 |
|
|
(37.6 |
)% |
|
|
569.8 |
|
|
|
912.7 |
|
|
(37.6 |
)% |
Domestic backlog |
|
450.1 |
|
|
|
773.3 |
|
|
(41.8 |
)% |
|
|
450.1 |
|
|
|
773.3 |
|
|
(41.8 |
)% |
International backlog |
|
119.7 |
|
|
|
139.4 |
|
|
(14.1 |
)% |
|
|
119.7 |
|
|
|
139.4 |
|
|
(14.1 |
)% |
Income from operations |
|
18.9 |
|
|
|
3.3 |
|
|
472.7 |
% |
|
|
48.6 |
|
|
|
7.5 |
|
|
548.0 |
% |
Operating margin |
|
5.6 |
% |
|
|
0.9 |
% |
|
470 |
bps |
|
|
3.6 |
% |
|
|
0.6 |
% |
|
300 |
bps |
Effective tax rate |
|
14.9 |
% |
|
|
144.8 |
% |
|
(12,990 |
) bps |
|
|
21.3 |
% |
|
|
113.6 |
% |
|
(9,230 |
) bps |
Net income (loss) attributable
to controlling interest |
|
14.9 |
|
|
|
(1.0 |
) |
|
1,590.0 |
% |
|
|
33.5 |
|
|
|
(0.1 |
) |
|
33,600.0 |
% |
Diluted EPS |
|
0.65 |
|
|
|
(0.04 |
) |
|
1,725.0 |
% |
|
|
1.47 |
|
|
|
— |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted income from operations |
|
26.3 |
|
|
|
14.7 |
|
|
78.9 |
% |
|
|
84.1 |
|
|
|
44.0 |
|
|
91.1 |
% |
Adjusted operating margin |
|
7.8 |
% |
|
|
4.2 |
% |
|
360 |
bps |
|
|
6.3 |
% |
|
|
3.5 |
% |
|
280 |
bps |
Adjusted effective tax
rate |
|
17.3 |
% |
|
|
47.6 |
% |
|
(3,030 |
) bps |
|
|
22.1 |
% |
|
|
32.8 |
% |
|
(1,070 |
) bps |
Adjusted net income
attributable to controlling interest |
|
20.6 |
|
|
|
7.8 |
|
|
164.1 |
% |
|
|
60.8 |
|
|
|
28.0 |
|
|
117.1 |
% |
Adjusted EPS |
|
0.90 |
|
|
|
0.34 |
|
|
164.7 |
% |
|
|
2.67 |
|
|
|
1.23 |
|
|
117.1 |
% |
Adjusted EBITDA |
|
32.6 |
|
|
|
22.2 |
|
|
46.8 |
% |
|
|
110.0 |
|
|
|
70.8 |
|
|
55.4 |
% |
Adjusted EBITDA margin |
|
9.7 |
% |
|
|
6.3 |
% |
|
340 |
bps |
|
|
8.2 |
% |
|
|
5.6 |
% |
|
260 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
All comparisons are made to the prior year
fourth quarter:
- Net sales decreased slightly due
primarily to a decline in international sales related to softer
demand. This was partially offset by an increase in domestic sales,
as healthy demand resulted in strong parts sales and an order rate
uptick.
- Our backlog remains healthy as
enhanced operations management supported efforts to convert backlog
to sales and fourth quarter implied order rates increased
sequentially from the third quarter of 2023. Order patterns,
interest rates and parts demand continue to contribute to a dynamic
environment as we progress on backlog conversion.
- Operating margin increased 470
basis points due to higher gross margin on price realization and
manufacturing efficiencies, which partially offset increased
selling, general and administrative expenses due to anticipated
higher personnel-related and project costs.
- The Company continued to make
progress on its multi-year phased ERP implementation as part of the
transformation to drive sustainable profitability. In 2023, we
successfully converted the operations of one of our major
manufacturing facilities and our corporate operations and made
meaningful progress on implementation at two of our other locations
slated to go-live at the end of the first quarter of 2024.
- Adjusted net income and Adjusted
EPS exclude $5.7 million and $0.25, respectively, of incremental
costs, net of tax, primarily driven by our transformation program
initiatives to optimize our Company for long term value
creation.
- Federal Highway and pavement
contract awards increased 8.6% year-over-year at December 2023,
according to the American Road and Transportation Builders
Association, as funding for the Federal Highway Bill continues to
be deployed.
Segments Results
Infrastructure Solutions - Road
building equipment, asphalt and concrete plants, thermal storage
solutions and related aftermarket parts.
- Net sales of $240.0 million
increased 0.7% as domestic sales offset softness in international
demand.
- Segment Operating Adjusted EBITDA
of $35.3 million compared to $23.1 million for the same period in
the prior year.
- Segment Operating Adjusted EBITDA
margin of 14.7% increased 500 basis points due to higher gross
margin driven by net positive volume and mix, price realization
outpacing inflation and manufacturing efficiencies partially offset
by higher selling, general and administrative personnel costs.
Materials Solutions -
Processing equipment to crush, screen and convey aggregates and
related aftermarket parts.
- Net sales of $95.4 million
decreased by 13.1% primarily due to softer demand.
- Segment Operating Adjusted EBITDA
of $8.9 million decreased 8.2%.
- Segment Operating Adjusted EBITDA
margin of 9.3% increased 50 basis points, driven primarily by a 440
basis point increase in gross margin due to price realization and
manufacturing efficiencies partially offset by lower net volume and
mix, inflation and higher selling, general and administrative
expenses due to increases in planned personnel costs.
Balance Sheet, Cash Flow and
Liquidity
- Our total liquidity was $234.5
million, consisting of $59.8 million of cash and cash equivalents
available for operating purposes and $174.7 million available for
additional borrowings under our revolving credit facility.
- Net cash provided by operating
activities for the year ended December 31, 2023 was $27.8 million
as we took steps to improve our working capital management.
- Net cash consumed by investing
activities for the year ended December 31, 2023 was $12.9 million
primarily due to investments in mobile construction and crushing
equipment facilities.
- Net cash used in financing
activities for the year ended December 31, 2023 was $18.3 million
primarily due to dividends paid and increased net repayments on
credit facilities and bank loans.
Fourth Quarter Capital
Allocation
- Capital expenditure investments to
increase capacity and improve efficiency were $9.1 million.
- Dividend payment of $0.13 per
share.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, February 28, 2024, at 8:30 A.M. Eastern Time,
to review its fourth quarter financial results as well as current
business conditions.
To access the call, dial (888) 440-4118 on
Wednesday, February 28, 2024 at least 10 minutes prior to the
scheduled time for the call. International callers should dial
(646) 960-0833.
You may also access a live webcast of the call at:
https://events.q4inc.com/attendee/359393770
You will need to give your name and company
affiliation and reference Astec. An archived webcast will be
available for ninety days at www.astecindustries.com.
A replay of the call can be accessed until March
13, 2024 by dialing (800) 770-2030, or (609) 800-9909 for
international callers, Conference ID# 8741406. A transcript 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.
About Astec
Astec, (www.astecindustries.com), is a
manufacturer of specialized equipment for asphalt road building,
aggregate processing and concrete production. Astec's
manufacturing operations are divided into two primary business
segments: Infrastructure Solutions that includes road building,
asphalt and concrete plants, thermal and storage solutions; and
Materials Solutions that include our aggregate processing
equipment. Astec also operates a line of controls and automation
products designed to deliver enhanced productivity through improved
equipment performance.
Safe Harbor Statements under the Private
Securities Litigation Reform Act of 1995
This News Release contains forward-looking
statements within the meaning of the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements
relate to, among other things, income, earnings, cash flows,
changes in operations, operating improvements, businesses in which
we operate and the United States and global economies. Statements
in this News Release that are not historical are hereby identified
as "forward-looking statements" and may be indicated by words or
phrases such as "anticipates," "supports," "plans," "projects,"
"expects," "believes," "should," "would," "could," "forecast,"
"management is of the opinion," use of the future tense and similar
words or phrases. These forward-looking statements are based
largely on management's expectations, which are subject to a number
of known and unknown risks, uncertainties and other factors
discussed and described in our most recent Annual Report on Form
10-K, including those risks described in Part I, Item 1A. Risk
Factors thereof, and in other reports filed
subsequently by us with the Securities and Exchange Commission,
which may cause actual results, financial or otherwise, to be
materially different from those anticipated, expressed or implied
by the forward-looking statements. All forward-looking statements
included in this document are based on information available to us
on the date hereof, and we assume no obligation to update any such
forward-looking statements to reflect future events or
circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with
additional information regarding the Company's results, the Company
refers to various U.S. GAAP (U.S. generally accepted accounting
principles) and non-GAAP financial measures which management
believes provides useful information to investors. These non-GAAP
financial measures have no standardized meaning prescribed by U.S.
GAAP and therefore may not be comparable to the calculation of
similar measures for other companies. Management of the Company
does not intend these items to be considered in isolation or as a
substitute for the related GAAP measures. Nonetheless, this
non-GAAP information can be useful in understanding the Company's
operating results and the performance of its core business.
Management of the Company uses both GAAP and non-GAAP financial
measures to establish internal budgets and targets and to evaluate
the Company's financial performance against such budgets and
targets. A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in this News
Release.
For Additional Information
Contact: Steve Anderson Senior Vice President of
Administration and Investor RelationsPhone: (423)
899-5898 E-mail: sanderson@astecindustries.com
Certain reclassifications have been made to the
prior period financial information included in this News Release to
conform to the presentation used in the financial statements for
the three months and year ended December 31, 2023.
Astec Industries Inc.Condensed
Consolidated Statements of
Operations(In millions, except
shares in thousands and per share amounts; unaudited) |
|
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
sales |
|
$ |
337.2 |
|
|
$ |
349.9 |
|
|
$ |
1,338.2 |
|
|
$ |
1,274.5 |
|
Cost
of sales |
|
|
248.1 |
|
|
|
278.9 |
|
|
|
1,007.4 |
|
|
|
1,010.4 |
|
Gross
profit |
|
|
89.1 |
|
|
|
71.0 |
|
|
|
330.8 |
|
|
|
264.1 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses |
|
|
69.7 |
|
|
|
63.2 |
|
|
|
276.4 |
|
|
|
247.6 |
|
Restructuring, impairment and other asset charges, net |
|
|
0.5 |
|
|
|
4.5 |
|
|
|
5.8 |
|
|
|
9.0 |
|
Total operating expenses |
|
|
70.2 |
|
|
|
67.7 |
|
|
|
282.2 |
|
|
|
256.6 |
|
Income from operations |
|
|
18.9 |
|
|
|
3.3 |
|
|
|
48.6 |
|
|
|
7.5 |
|
|
|
|
|
|
|
|
|
|
Other
expenses, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(2.5 |
) |
|
|
(0.9 |
) |
|
|
(8.9 |
) |
|
|
(2.5 |
) |
Other income (expenses), net |
|
|
1.1 |
|
|
|
0.5 |
|
|
|
3.1 |
|
|
|
(0.6 |
) |
Income before income taxes |
|
|
17.5 |
|
|
|
2.9 |
|
|
|
42.8 |
|
|
|
4.4 |
|
Income tax provision |
|
|
2.6 |
|
|
|
4.2 |
|
|
|
9.1 |
|
|
|
5.0 |
|
Net
income (loss) |
|
|
14.9 |
|
|
|
(1.3 |
) |
|
|
33.7 |
|
|
|
(0.6 |
) |
Net
loss (income) attributable to noncontrolling interest |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.2 |
) |
|
|
0.5 |
|
Net
income (loss) attributable to controlling interest |
|
$ |
14.9 |
|
|
$ |
(1.0 |
) |
|
$ |
33.5 |
|
|
$ |
(0.1 |
) |
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.65 |
|
|
$ |
(0.04 |
) |
|
$ |
1.47 |
|
|
$ |
— |
|
Diluted |
|
|
0.65 |
|
|
|
(0.04 |
) |
|
|
1.47 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
22,751 |
|
|
|
22,692 |
|
|
|
22,720 |
|
|
|
22,791 |
|
Diluted |
|
|
22,799 |
|
|
|
22,692 |
|
|
|
22,781 |
|
|
|
22,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.Segment Net
Sales and Operating Adjusted
EBITDA(In millions, except percentage data;
unaudited) |
Segment net sales are reported net of
intersegment sales.
|
Three Months Ended December 31, |
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate and Other |
|
Total |
2023 Net sales |
$ |
240.0 |
|
|
$ |
95.4 |
|
|
$ |
1.8 |
|
|
$ |
337.2 |
|
2022 Net sales |
|
238.4 |
|
|
|
109.8 |
|
|
|
1.7 |
|
|
|
349.9 |
|
Change $ |
|
1.6 |
|
|
|
(14.4 |
) |
|
|
0.1 |
|
|
|
(12.7 |
) |
Change % |
|
0.7 |
% |
|
|
(13.1 |
)% |
|
|
5.9 |
% |
|
|
(3.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Segment Operating
Adjusted EBITDA |
|
35.3 |
|
|
|
8.9 |
|
|
|
(11.4 |
) |
|
|
32.8 |
|
2022 Segment Operating
Adjusted EBITDA |
|
23.1 |
|
|
|
9.7 |
|
|
|
(10.2 |
) |
|
|
22.6 |
|
Change $ |
|
12.2 |
|
|
|
(0.8 |
) |
|
|
(1.2 |
) |
|
|
10.2 |
|
Change % |
|
52.8 |
% |
|
|
(8.2 |
)% |
|
|
(11.8 |
)% |
|
|
45.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Segment Operating
Adjusted EBITDA Margin |
|
14.7 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
2022 Segment Operating
Adjusted EBITDA Margin |
|
9.7 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
|
|
Change bps |
|
500 |
bps |
|
|
50 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate and Other |
|
Total |
2023 Net sales |
$ |
878.8 |
|
|
$ |
450.0 |
|
|
$ |
9.4 |
|
|
$ |
1,338.2 |
|
2022 Net sales |
|
847.4 |
|
|
|
422.7 |
|
|
|
4.4 |
|
|
|
1,274.5 |
|
Change $ |
|
31.4 |
|
|
|
27.3 |
|
|
|
5.0 |
|
|
|
63.7 |
|
Change % |
|
3.7 |
% |
|
|
6.5 |
% |
|
|
113.6 |
% |
|
|
5.0 |
% |
|
|
|
|
|
|
|
|
2023 Segment Operating
Adjusted EBITDA |
|
105.8 |
|
|
|
50.8 |
|
|
|
(44.9 |
) |
|
|
111.7 |
|
2022 Segment Operating
Adjusted EBITDA |
|
73.0 |
|
|
|
44.5 |
|
|
|
(46.5 |
) |
|
|
71.0 |
|
Change $ |
|
32.8 |
|
|
|
6.3 |
|
|
|
1.6 |
|
|
|
40.7 |
|
Change % |
|
44.9 |
% |
|
|
14.2 |
% |
|
|
3.4 |
% |
|
|
57.3 |
% |
|
|
|
|
|
|
|
|
2023 Segment Operating
Adjusted EBITDA Margin |
|
12.0 |
% |
|
|
11.3 |
% |
|
|
|
|
2022 Segment Operating
Adjusted EBITDA Margin |
|
8.6 |
% |
|
|
10.5 |
% |
|
|
|
|
Change bps |
|
340 |
bps |
|
|
80 |
bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We present certain non-GAAP information that can
be useful in understanding our operating results and the
performance of our core business. We use both GAAP and non-GAAP
financial measures to establish internal budgets and targets and to
evaluate financial performance against such budgets and targets. We
exclude the costs and related tax effects, which are based on the
statutory tax rate applicable to each respective item, of the
following items as we do not believe they are indicative of our
core business operations:
- Transformation program -
Incremental costs related to the execution of our ongoing strategic
transformation initiatives which may include personnel costs,
third-party consultant costs, duplicative systems usage fees,
administrative costs, accelerated depreciation and amortization on
certain long-lived assets and other similar type charges.
Transformation program initiatives includes our multi-year phased
implementation of a standardized enterprise resource planning
system across the global organization and a lean manufacturing
initiative at one of our largest manufacturing sites. These costs
are included in "Cost of sales" and "Selling, general and
administrative expenses", as appropriate, in the Consolidated
Statements of Operations.
- Restructuring and other related
charges - Charges related to restructuring activities which
primarily include personnel termination actions and reorganization
efforts to simplify and consolidate our operations. These
activities include the termination of our previous Chief Executive
Officer, the limited overhead restructuring action implemented in
February 2023, the closing of our Tacoma location in Q1 2022 and
ongoing litigation costs for our exited Enid location. These costs
are recorded in "Restructuring, impairment and other asset charges,
net" in the Consolidated Statements of Operations.
- Asset impairment - Asset impairment
charges, to the extent that they are experienced, are recorded in
"Restructuring, impairment and other asset charges, net" in the
Consolidated Statements of Operations. These include charges
associated with abandoned in-process internally developed software
that was determined to be impaired in the second quarter of both
2023 and 2022. Additional charges in 2023 relate to manufacturing
equipment determined to be impaired. Additional charges in 2022
relate to the determination that prepaid charges related to certain
manufacturing equipment contracted to be constructed by a
third-party vendor would not be recovered.
- Gain on sale of property and
equipment, net - Gains or losses recognized on the disposal of
property and equipment that are recorded in "Restructuring,
impairment and other asset charges, net" in the Consolidated
Statements of Operations. We may sell or dispose of assets in the
normal course of our business operations as they are no longer
needed or used.
- Transaction costs - Transaction
costs associated with the acquisition or integration of acquired
businesses. These costs are typically included in "Selling, general
and administrative expenses" in the Consolidated Statements of
Operations. Transaction costs primarily relate to the acquisition
and integration costs associated with the acquisition of MINDS
Automation Group, Inc. that was completed on April 1, 2022.
A reconciliation of total Segment Operating Adjusted EBITDA to
the Company's "Net income (loss) attributable to controlling
interest" is as follows (in millions; unaudited):
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
|
2023 |
|
|
|
2022 |
|
|
Change $ |
|
|
2023 |
|
|
|
2022 |
|
|
Change $ |
Segment Operating Adjusted EBITDA |
|
$ |
32.8 |
|
|
$ |
22.6 |
|
|
$ |
10.2 |
|
|
$ |
111.7 |
|
|
$ |
71.0 |
|
|
$ |
40.7 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Transformation program |
|
|
(6.7 |
) |
|
|
(6.8 |
) |
|
|
0.1 |
|
|
|
(29.2 |
) |
|
|
(25.5 |
) |
|
|
(3.7 |
) |
Restructuring and other related charges |
|
|
(0.1 |
) |
|
|
(4.7 |
) |
|
|
4.6 |
|
|
|
(7.7 |
) |
|
|
(6.2 |
) |
|
|
(1.5 |
) |
Asset impairment |
|
|
(0.4 |
) |
|
|
(0.1 |
) |
|
|
(0.3 |
) |
|
|
(1.2 |
) |
|
|
(3.5 |
) |
|
|
2.3 |
|
Gain on sale of property and equipment, net |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
|
3.1 |
|
|
|
0.7 |
|
|
|
2.4 |
|
Transaction costs |
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
— |
|
|
|
(2.0 |
) |
|
|
2.0 |
|
Interest expense, net |
|
|
(1.9 |
) |
|
|
(0.6 |
) |
|
|
(1.3 |
) |
|
|
(6.8 |
) |
|
|
(1.5 |
) |
|
|
(5.3 |
) |
Depreciation and
amortization |
|
|
(6.0 |
) |
|
|
(7.0 |
) |
|
|
1.0 |
|
|
|
(25.6 |
) |
|
|
(27.9 |
) |
|
|
2.3 |
|
Income tax provision |
|
|
(2.6 |
) |
|
|
(4.2 |
) |
|
|
1.6 |
|
|
|
(9.1 |
) |
|
|
(5.0 |
) |
|
|
(4.1 |
) |
Elimination of intercompany
profit |
|
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
0.5 |
|
|
|
(1.5 |
) |
|
|
(0.7 |
) |
|
|
(0.8 |
) |
Net loss (income) attributable
to noncontrolling interest |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
|
|
(0.2 |
) |
|
|
0.5 |
|
|
|
(0.7 |
) |
Net income (loss) attributable
to controlling interest |
|
$ |
14.9 |
|
|
$ |
(1.0 |
) |
|
$ |
15.9 |
|
|
$ |
33.5 |
|
|
$ |
(0.1 |
) |
|
$ |
33.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.Condensed
Consolidated Balance Sheets(In millions;
unaudited) |
|
|
December 31, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and restricted cash |
$ |
63.2 |
|
|
$ |
66.0 |
|
Investments |
|
5.7 |
|
|
|
3.9 |
|
Trade receivables, contract assets and other receivables, net |
|
152.7 |
|
|
|
173.6 |
|
Inventories, net |
|
455.6 |
|
|
|
393.4 |
|
Other current assets, net |
|
42.3 |
|
|
|
59.5 |
|
Total current assets |
|
719.5 |
|
|
|
696.4 |
|
Property, plant and equipment, net |
|
187.6 |
|
|
|
173.6 |
|
Other
long-term assets |
|
152.2 |
|
|
|
144.4 |
|
Total
assets |
$ |
1,059.3 |
|
|
$ |
1,014.4 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
116.9 |
|
|
$ |
107.2 |
|
Customer deposits |
|
70.2 |
|
|
|
69.5 |
|
Other current liabilities |
|
111.9 |
|
|
|
97.3 |
|
Total current liabilities |
|
299.0 |
|
|
|
274.0 |
|
Long-term debt |
|
72.0 |
|
|
|
78.1 |
|
Other
long-term liabilities |
|
34.6 |
|
|
|
35.4 |
|
Total
equity |
|
653.7 |
|
|
|
626.9 |
|
Total
liabilities and equity |
$ |
1,059.3 |
|
|
$ |
1,014.4 |
|
|
|
|
|
|
|
|
|
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows
(In millions; unaudited) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net
income (loss) |
$ |
33.7 |
|
|
$ |
(0.6 |
) |
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
Depreciation and amortization |
|
25.6 |
|
|
|
27.9 |
|
Provision for credit losses |
|
1.6 |
|
|
|
1.2 |
|
Provision for warranties |
|
17.6 |
|
|
|
12.6 |
|
Deferred compensation benefit |
|
(0.1 |
) |
|
|
(0.9 |
) |
Share-based compensation |
|
4.1 |
|
|
|
6.8 |
|
Deferred tax benefit |
|
(6.4 |
) |
|
|
(17.1 |
) |
Gain on disposition of property and equipment, net |
|
(3.1 |
) |
|
|
(0.7 |
) |
Asset impairment charges |
|
1.2 |
|
|
|
3.5 |
|
Amortization of debt issuance costs |
|
0.3 |
|
|
|
— |
|
Distributions to deferred compensation programs' participants |
|
(1.8 |
) |
|
|
(1.0 |
) |
Change in operating assets and liabilities: |
|
|
|
(Purchase) sale of trading securities, net |
|
(0.3 |
) |
|
|
0.7 |
|
Receivables and other contract assets |
|
20.5 |
|
|
|
(28.0 |
) |
Inventories |
|
(63.0 |
) |
|
|
(96.4 |
) |
Prepaid expenses |
|
2.2 |
|
|
|
(2.8 |
) |
Other assets |
|
(12.8 |
) |
|
|
(16.2 |
) |
Accounts payable |
|
7.7 |
|
|
|
25.5 |
|
Accrued loss reserves |
|
1.4 |
|
|
|
(0.1 |
) |
Accrued employee related liabilities |
|
8.7 |
|
|
|
4.3 |
|
Other accrued liabilities |
|
(0.8 |
) |
|
|
2.6 |
|
Accrued product warranty |
|
(13.1 |
) |
|
|
(11.1 |
) |
Customer deposits |
|
1.0 |
|
|
|
9.9 |
|
Income taxes payable/prepaid |
|
3.6 |
|
|
|
6.0 |
|
Net
cash provided by (used in) operating activities |
|
27.8 |
|
|
|
(73.9 |
) |
Cash flows from investing activities: |
|
|
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
(17.8 |
) |
Expenditures for property and equipment |
|
(34.1 |
) |
|
|
(40.7 |
) |
Proceeds from sale of property and equipment |
|
20.3 |
|
|
|
5.7 |
|
Purchase of investments |
|
(1.0 |
) |
|
|
(1.0 |
) |
Sale of investments |
|
1.9 |
|
|
|
0.6 |
|
Net
cash used in investing activities |
|
(12.9 |
) |
|
|
(53.2 |
) |
(Continued) |
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows
(Continued)(In millions; unaudited) |
|
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from financing activities: |
|
|
|
Payment of dividends |
|
(11.8 |
) |
|
|
(11.2 |
) |
Proceeds from borrowings on credit facilities and bank loans |
|
240.6 |
|
|
|
223.0 |
|
Repayments of borrowings on credit facilities and bank loans |
|
(245.8 |
) |
|
|
(138.5 |
) |
Payment of debt issuance costs |
|
— |
|
|
|
(1.5 |
) |
Sale of Company stock by deferred compensation programs, net |
|
0.3 |
|
|
|
0.2 |
|
Withholding tax paid upon vesting of share-based compensation
awards |
|
(1.6 |
) |
|
|
(1.8 |
) |
Repurchase of Company stock |
|
— |
|
|
|
(10.1 |
) |
Net cash (used in) provided by
financing activities |
|
(18.3 |
) |
|
|
60.1 |
|
Effect of exchange rates on
cash |
|
0.6 |
|
|
|
(1.4 |
) |
Decrease in cash, cash
equivalents and restricted cash |
|
(2.8 |
) |
|
|
(68.4 |
) |
Cash, cash equivalents and
restricted cash, beginning of period |
|
66.0 |
|
|
|
134.4 |
|
Cash, cash equivalents and
restricted cash, end of period |
$ |
63.2 |
|
|
$ |
66.0 |
|
|
|
|
|
|
|
|
|
Astec Industries Inc.GAAP vs Non-GAAP
Adjusted EPS Reconciliations(In millions, except
per share amounts; unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net
income (loss) attributable to controlling interest |
$ |
14.9 |
|
|
$ |
(1.0 |
) |
|
$ |
33.5 |
|
|
$ |
(0.1 |
) |
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
6.9 |
|
|
|
6.8 |
|
|
|
29.7 |
|
|
|
25.5 |
|
Restructuring and other related charges |
|
0.1 |
|
|
|
4.7 |
|
|
|
7.7 |
|
|
|
6.2 |
|
Asset impairment |
|
0.4 |
|
|
|
0.1 |
|
|
|
1.2 |
|
|
|
3.5 |
|
Gain on sale of property and equipment, net |
|
— |
|
|
|
(0.3 |
) |
|
|
(3.1 |
) |
|
|
(0.7 |
) |
Transaction costs |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
2.0 |
|
Income tax impact of adjustments |
|
(1.7 |
) |
|
|
(2.6 |
) |
|
|
(8.2 |
) |
|
|
(8.4 |
) |
Adjusted net income attributable to controlling interest |
$ |
20.6 |
|
|
$ |
7.8 |
|
|
$ |
60.8 |
|
|
$ |
28.0 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.65 |
|
|
$ |
(0.04 |
) |
|
$ |
1.47 |
|
|
$ |
— |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
0.30 |
|
|
|
0.30 |
|
|
|
1.30 |
|
|
|
1.12 |
|
Restructuring and other related charges (a) |
|
— |
|
|
|
0.20 |
|
|
|
0.35 |
|
|
|
0.27 |
|
Asset impairment |
|
0.02 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
0.15 |
|
Gain on sale of property and equipment, net |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.14 |
) |
|
|
(0.03 |
) |
Transaction costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.09 |
|
Income tax impact of adjustments |
|
(0.07 |
) |
|
|
(0.11 |
) |
|
|
(0.36 |
) |
|
|
(0.37 |
) |
Adjusted EPS |
$ |
0.90 |
|
|
$ |
0.34 |
|
|
$ |
2.67 |
|
|
$ |
1.23 |
|
|
|
|
|
|
|
|
|
(a) Calculation includes the impact of a rounding adjustment |
Astec Industries Inc.EBITDA and Adjusted
EBITDA Reconciliations(In millions, except
percentage data; unaudited) |
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
$ |
337.2 |
|
|
$ |
349.9 |
|
|
$ |
1,338.2 |
|
|
$ |
1,274.5 |
|
|
|
|
|
|
|
|
|
Net
income (loss) attributable to controlling interest |
$ |
14.9 |
|
|
$ |
(1.0 |
) |
|
$ |
33.5 |
|
|
$ |
(0.1 |
) |
Interest expense, net |
|
1.9 |
|
|
|
0.6 |
|
|
|
6.8 |
|
|
|
1.5 |
|
Depreciation and amortization |
|
6.0 |
|
|
|
7.0 |
|
|
|
25.6 |
|
|
|
27.9 |
|
Income tax provision |
|
2.6 |
|
|
|
4.2 |
|
|
|
9.1 |
|
|
|
5.0 |
|
EBITDA |
|
25.4 |
|
|
|
10.8 |
|
|
|
75.0 |
|
|
|
34.3 |
|
EBITDA margin |
|
7.5 |
% |
|
|
3.1 |
% |
|
|
5.6 |
% |
|
|
2.7 |
% |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
6.7 |
|
|
|
6.8 |
|
|
|
29.2 |
|
|
|
25.5 |
|
Restructuring and other related charges |
|
0.1 |
|
|
|
4.7 |
|
|
|
7.7 |
|
|
|
6.2 |
|
Asset impairment |
|
0.4 |
|
|
|
0.1 |
|
|
|
1.2 |
|
|
|
3.5 |
|
Gain on sale of property and equipment, net |
|
— |
|
|
|
(0.3 |
) |
|
|
(3.1 |
) |
|
|
(0.7 |
) |
Transaction costs |
|
— |
|
|
|
0.1 |
|
|
|
— |
|
|
|
2.0 |
|
Adjusted EBITDA |
$ |
32.6 |
|
|
$ |
22.2 |
|
|
$ |
110.0 |
|
|
$ |
70.8 |
|
Adjusted EBITDA margin |
|
9.7 |
% |
|
|
6.3 |
% |
|
|
8.2 |
% |
|
|
5.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries (NASDAQ:ASTE)
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From Sep 2024 to Oct 2024
Astec Industries (NASDAQ:ASTE)
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From Oct 2023 to Oct 2024