Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their third quarter ended September 30, 2015.
Net sales for the third quarter of 2015 were
$211.4 million compared to $220.2 million for the third quarter of
2014, a 4% decrease. Earnings for the third quarter of 2015
were $2.3 million or $0.10 per diluted share compared to $1.9
million or $0.08 per diluted share in the third quarter of 2014, an
increase of 25%.
Domestic sales increased 10% to $156.3 million
for the third quarter of 2015 compared to $142.6 million for the
third quarter of 2014. International sales decreased 29% to
$55.1 million for the third quarter of 2015 compared to $77.6
million for the third quarter of 2014.
Net sales for the first nine months of 2015 were
$768.1 million compared to $736.1 million for the first nine months
of 2014, a 4% increase. Earnings for the first nine months of
2015 were $29.2 million or $1.26 per diluted share compared to
$26.0 million or $1.12 per diluted share in the first nine months
of 2014, a 12% increase.
Domestic sales increased 12% to $562.0 million
for the first nine months of 2015 compared to $502.7 million for
the first nine months of 2014. International sales were
$206.1 million for the first nine months of 2015 compared to $233.4
million for the first nine months of 2014, a 12% decrease.
The Company’s domestic backlog decreased 1%,
from $189.2 million at September 30, 2014 to $187.5 million at
September 30, 2015. The international backlog at September
30, 2015 was $58.1 million compared to $105.8 million at September
30, 2014 for a decrease of 45%. Total backlog decreased 17%
to $245.6 million at September 30, 2015 from $295.0 million at
September 30, 2014.
Consolidated financial information for the
quarter and nine months ended September 30, 2015 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 25% in the third quarter versus
the third quarter of last year, especially given the current
headwinds we are facing, including low oil prices, the global
mining slow down, the strong U.S. Dollar, and the absence of a
long-term highway bill in the United States.”
Mr. Brock continued, “Low oil prices have hurt
our Energy Group sales. The mining slowdown has hurt our
Aggregate and Mining Group sales. The strong U.S. Dollar has
hurt our international sales and the lack of a long-term highway
bill has hurt all of our groups.”
Mr. Brock concluded, “Despite these headwinds,
our year-to-date revenues are up 4% and our year-to-date earnings
are up 12% versus last year. We have accomplished these
increases through a variety of efforts, but two that stand out are
our new product offerings that have allowed us to secure many of
the orders we have shipped this year and our lean manufacturing
initiatives which have improved margins and earnings. We
remain committed to new product releases in each of our groups in
order to earn more business moving ahead. Eventually the
headwinds will subside and we will be well positioned to take
advantage when they do.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October
20, 2015, at 10:00 A.M. Eastern Time to review its September 30,
2015 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 3, 2015 by dialing
(877) 660-6853, or (201) 612-7415 for international callers,
Account #286, Conference ID# 13622090. 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 low oil prices, the global mining slow
down, the strong U.S. Dollar, and the absence of a long-term
highway bill in the United States. 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,
2014.
|
|
|
|
|
Astec Industries, Inc. |
|
|
Condensed Consolidated Balance
Sheets |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
Sept 30 |
Sept 30 |
|
|
|
|
2015 |
|
|
2014 |
|
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
13,985 |
|
$ |
13,820 |
|
|
|
Investments |
|
1,834 |
|
|
1,903 |
|
|
|
Receivables, net |
|
105,226 |
|
|
108,844 |
|
|
|
Inventories |
|
384,531 |
|
|
370,436 |
|
|
|
Prepaid expenses and other |
|
50,398 |
|
|
36,629 |
|
|
|
Total current assets |
|
555,974 |
|
|
531,632 |
|
|
|
Property and equipment, net |
|
170,508 |
|
|
190,395 |
|
|
|
Other assets |
|
60,805 |
|
|
66,554 |
|
|
|
Total assets |
$ |
787,287 |
|
$ |
788,581 |
|
|
|
Liabilities and equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable - trade |
$ |
46,406 |
|
$ |
53,034 |
|
|
|
Other current liabilities |
|
91,568 |
|
|
97,059 |
|
|
|
Total current liabilities |
|
137,974 |
|
|
150,093 |
|
|
|
Non-current liabilities |
|
36,919 |
|
|
40,139 |
|
|
|
Total equity |
|
612,394 |
|
|
598,349 |
|
|
|
Total liabilities and equity |
$ |
787,287 |
|
$ |
788,581 |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
2015 |
|
|
2014 |
|
|
2015 |
|
|
2014 |
|
Net sales |
$ |
211,350 |
|
$ |
220,157 |
|
$ |
768,141 |
|
$ |
736,086 |
|
Cost of sales |
|
166,212 |
|
|
176,896 |
|
|
594,724 |
|
|
573,890 |
|
Gross profit |
|
45,138 |
|
|
43,261 |
|
|
173,417 |
|
|
162,196 |
|
Selling, general, administrative & engineering expenses |
|
41,023 |
|
|
38,867 |
|
|
128,136 |
|
|
122,539 |
|
Income from operations |
|
4,115 |
|
|
4,394 |
|
|
45,281 |
|
|
39,657 |
|
Interest expense |
|
505 |
|
|
193 |
|
|
1,222 |
|
|
375 |
|
Other |
|
844 |
|
|
860 |
|
|
3,212 |
|
|
2,410 |
|
Income before income taxes |
|
4,454 |
|
|
5,061 |
|
|
47,271 |
|
|
41,692 |
|
Income taxes |
|
2,162 |
|
|
3,145 |
|
|
18,070 |
|
|
15,734 |
|
Net income attributable to controlling interest |
$ |
2,292 |
|
$ |
1,916 |
|
$ |
29,201 |
|
$ |
25,958 |
|
|
|
|
|
|
|
|
|
|
|
Earnings
per Common Share |
|
|
|
|
Net
income attributable to controlling interest |
|
|
|
|
Basic |
$ |
0.10 |
|
$ |
0.08 |
|
$ |
1.27 |
|
$ |
1.14 |
|
Diluted |
$ |
0.10 |
|
$ |
0.08 |
|
$ |
1.26 |
|
$ |
1.12 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding |
|
|
|
|
Basic |
|
22,943 |
|
|
22,830 |
|
|
22,930 |
|
|
22,813 |
|
Diluted |
|
23,121 |
|
|
23,109 |
|
|
23,118 |
|
|
23,103 |
|
|
|
|
|
|
Astec Industries, Inc. |
|
Segment Revenues and Profits |
|
For the three months ended September 30, 2015 and
2014 |
|
(in thousands) |
|
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
2015 Revenues |
|
85,625 |
|
|
80,549 |
|
|
45,176 |
|
|
- |
|
|
211,350 |
|
|
2014 Revenues |
|
78,698 |
|
|
88,177 |
|
|
53,282 |
|
|
- |
|
|
220,157 |
|
|
Change $ |
|
6,927 |
|
|
(7,628 |
) |
|
(8,106 |
) |
|
- |
|
|
(8,807 |
) |
|
Change % |
|
8.8 |
% |
|
(8.7 |
)% |
|
(15.2 |
)% |
|
- |
|
|
(4.0 |
)% |
|
|
|
|
|
|
|
|
2015 Gross Profit |
|
16,104 |
|
|
19,226 |
|
|
9,794 |
|
|
14 |
|
|
45,138 |
|
|
2015 Gross Profit % |
|
18.8 |
% |
|
23.9 |
% |
|
21.7 |
% |
|
- |
|
|
21.4 |
% |
|
2014 Gross Profit |
|
11,367 |
|
|
21,604 |
|
|
10,277 |
|
|
13 |
|
|
43,261 |
|
|
2014 Gross Profit % |
|
14.4 |
% |
|
24.5 |
% |
|
19.3 |
% |
|
- |
|
|
19.7 |
% |
|
Change |
|
4,737 |
|
|
(2,378 |
) |
|
(483 |
) |
|
1 |
|
|
1,877 |
|
|
|
|
|
|
|
|
|
2015 Profit (Loss) |
|
2,116 |
|
|
3,790 |
|
|
1,941 |
|
|
(6,853 |
) |
|
994 |
|
|
2014 Profit (Loss) |
|
520 |
|
|
6,806 |
|
|
2,789 |
|
|
(7,137 |
) |
|
2,978 |
|
|
Change $ |
|
1,596 |
|
|
(3,016 |
) |
|
(848 |
) |
|
284 |
|
|
(1,984 |
) |
|
Change % |
|
306.9 |
% |
|
(44.3 |
)% |
|
(30.4 |
)% |
|
4.0 |
% |
|
(66.6 |
)% |
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
2015 |
|
|
2014 |
|
Change $ |
|
|
Total
profit for all segments |
$ |
994 |
|
$ |
2,978 |
|
$ |
(1,984 |
) |
|
|
Recapture
(elimination) of intersegment profit |
|
964 |
|
|
(1,212 |
) |
|
2,176 |
|
|
|
Net loss
attributable to non-controlling interest |
|
334 |
|
|
150 |
|
|
184 |
|
|
|
Net income attributable to controlling interest |
$ |
2,292 |
|
$ |
1,916 |
|
$ |
376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries, Inc. |
|
Segment Revenues and Profits |
|
For the nine months ended September 30, 2015 and
2014 |
|
(in thousands) |
|
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
2015 Revenues |
|
336,768 |
|
|
285,790 |
|
|
145,583 |
|
|
- |
|
|
768,141 |
|
|
2014 Revenues |
|
296,074 |
|
|
287,976 |
|
|
152,036 |
|
|
- |
|
|
736,086 |
|
|
Change $ |
|
40,694 |
|
|
(2,186 |
) |
|
(6,453 |
) |
|
- |
|
|
32,055 |
|
|
Change % |
|
13.7 |
% |
|
(0.8 |
)% |
|
(4.2 |
)% |
|
- |
|
|
4.4 |
% |
|
|
|
|
|
|
|
|
2015 Gross Profit |
|
74,292 |
|
|
70,182 |
|
|
28,912 |
|
|
31 |
|
|
173,417 |
|
|
2015 Gross Profit % |
|
22.1 |
% |
|
24.6 |
% |
|
19.9 |
% |
|
- |
|
|
22.6 |
% |
|
2014 Gross Profit |
|
59,135 |
|
|
70,722 |
|
|
32,309 |
|
|
30 |
|
|
162,196 |
|
|
2014 Gross Profit % |
|
20.0 |
% |
|
24.6 |
% |
|
21.3 |
% |
|
- |
|
|
22.0 |
% |
|
Change |
|
15,157 |
|
|
(540 |
) |
|
(3,397 |
) |
|
1 |
|
|
11,221 |
|
|
|
|
|
|
|
|
|
2015 Profit (Loss) |
|
29,472 |
|
|
25,441 |
|
|
2,805 |
|
|
(29,154 |
) |
|
28,564 |
|
|
2014 Profit (Loss) |
|
21,124 |
|
|
27,065 |
|
|
7,659 |
|
|
(27,578 |
) |
|
28,270 |
|
|
Change $ |
|
8,348 |
|
|
(1,624 |
) |
|
(4,854 |
) |
|
(1,576 |
) |
|
294 |
|
|
Change % |
|
39.5 |
% |
|
(6.0 |
)% |
|
(63.4 |
)% |
|
(5.7 |
)% |
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
2015 |
|
|
2014 |
|
Change $ |
|
|
Total
profit for all segments |
$ |
28,564 |
|
$ |
28,270 |
|
$ |
294 |
|
|
|
Elimination
of intersegment profit |
|
(32 |
) |
|
(2,468 |
) |
|
2,436 |
|
|
|
Net loss
attributable to non-controlling interest |
|
669 |
|
|
156 |
|
|
513 |
|
|
|
Net income attributable to controlling interest |
$ |
29,201 |
|
$ |
25,958 |
|
$ |
3,243 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries, Inc. |
|
|
Backlog by Segment |
|
|
September 30, 2015 and 2014 |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
2015 Backlog |
|
145,073 |
|
|
68,110 |
|
|
32,432 |
|
|
245,615 |
|
|
|
2014 Backlog |
|
135,895 |
|
|
80,978 |
|
|
78,156 |
|
|
295,029 |
|
|
|
Change $ |
|
9,178 |
|
|
(12,868 |
) |
|
(45,724 |
) |
|
(49,414 |
) |
|
|
Change % |
|
6.8 |
% |
|
(15.9 |
)% |
|
(58.5 |
)% |
|
(16.7 |
)% |
|
|
|
|
|
|
|
|
|
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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