Astec Industries Reports First Quarter 2016 Results
April 28 2016 - 11:46AM
Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their first quarter ended March 31, 2016.
Net sales for the first quarter of 2016 were $278.7
million compared to $288.7 million for the first quarter of 2015, a
3.5% decrease. Earnings for the first quarter of 2016 were
$17.7 million or $0.77 per diluted share compared to $15.1 million
for the first quarter of 2015 or $0.65 per diluted share, an
increase of 18.5% per diluted share.
Domestic sales increased 11.0% to $234.2 million
for the first quarter of 2016 from $211.0 million for the first
quarter of 2015. International sales were $44.5 million for
the first quarter of 2016 compared to $77.7 million for the first
quarter of 2015, a decrease of 42.7%.
The Company’s backlog increased 48.7% from $291.2
million at March 31, 2015 to $432.8 million at March 31,
2016. The domestic backlog increased 90.3% from $201.0
million at March 31, 2015 to $382.5 million at March 31,
2016. The international backlog at March 31, 2016 was $50.3
million, a 44.2% decrease from the March 31, 2015 international
backlog of $90.2 million.
Consolidated financial information for the first
quarter ended March 31, 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,
Chief Executive Officer, stated, “We were pleased with our results
for the first quarter. As our sales and backlog reflect, our
domestic business is very good. This is primarily
attributable to the passage of a new Federal highway bill and
continuing good private market activity. As expected, we recognized
the revenue on the $30 million pellet plant that we could not
recognize at year-end, further strengthening an already strong
first quarter performance.”
Mr. Brock continued, “Our backlog is up 48.7%
versus last year. Most of the increase is in the
Infrastructure Group, again mainly as a result of the highway bill
and the $122.5 million pellet plant order announced during the
quarter. In contrast to the success of our domestic business,
we continued to face headwinds in all of our groups with regard to
international business, primarily as a result of the strong U.S.
Dollar. We also continue to be challenged in our Aggregate
and Mining Group as a result of the global mining slow down.
Finally, we remain challenged in our Energy Group equipment sales
in the oil and natural gas industries as prices for these
commodities remain at low levels.”
Investor Conference Call and Web
Simulcast
Astec will conduct a conference call on April 26,
2016, 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 Thursday, May 12, 2016 by dialing (877)
660-6853, or (201) 612-7415 for international callers, Account
#286, Conference ID# 13634456. 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, wood pellet
production 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 and gas prices, the global
mining slow down, the strong U.S. Dollar, and the impact of the
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, 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,
2015.
| |
|
|
| Astec Industries, Inc. |
| Consolidated Balance Sheets |
| (in thousands) |
| (unaudited) |
| |
|
|
|
Mar
31 |
|
|
Mar
31 |
|
|
|
|
2016 |
|
|
2015 |
|
|
Assets |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
62,445 |
|
$ |
12,464 |
|
|
Investments |
|
1,654 |
|
|
2,195 |
|
|
Receivables, net |
|
119,371 |
|
|
129,919 |
|
|
Inventories |
|
389,504 |
|
|
388,710 |
|
|
Prepaid expenses and other |
|
26,961 |
|
|
34,923 |
|
|
Total current assets |
|
599,935 |
|
|
568,211 |
|
|
Property and equipment, net |
|
171,205 |
|
|
184,922 |
|
|
Other assets |
|
64,640 |
|
|
60,940 |
|
|
Total assets |
$ |
835,780 |
|
$ |
814,073 |
|
|
Liabilities and equity |
|
|
|
Current liabilities |
|
|
|
Accounts payable - trade |
$ |
56,188 |
|
$ |
66,220 |
|
|
Other current liabilities |
|
126,453 |
|
|
99,631 |
|
|
Total current liabilities |
|
182,641 |
|
|
165,851 |
|
|
Non-current liabilities |
|
26,877 |
|
|
40,498 |
|
|
Total equity |
|
626,262 |
|
|
607,724 |
|
|
Total liabilities and equity |
$ |
835,780 |
|
$ |
814,073 |
|
| |
|
|
| |
|
|
| Astec Industries, Inc. |
| Consolidated Statements of Income |
| (in thousands, except per share
data) |
| (unaudited) |
| |
|
|
Three Months Ended |
|
|
Mar 31 |
|
|
|
2016 |
|
|
2015 |
|
|
Net sales |
$ |
278,721 |
|
$ |
288,748 |
|
|
Cost of sales |
|
206,765 |
|
|
222,703 |
|
|
Gross profit |
|
71,956 |
|
|
66,045 |
|
|
Selling, general, administrative & engineering expenses |
|
43,806 |
|
|
43,804 |
|
|
Income from operations |
|
28,150 |
|
|
22,241 |
|
|
Interest expense |
|
467 |
|
|
297 |
|
|
Other |
|
609 |
|
|
1,949 |
|
|
Income before income taxes |
|
28,292 |
|
|
23,893 |
|
|
Income taxes |
|
10,549 |
|
|
8,788 |
|
|
Net income attributable to controlling interest |
$ |
17,743 |
|
$ |
15,105 |
|
|
|
|
|
|
|
|
|
| |
|
|
| Earnings
per Common Share |
|
|
| Net
income attributable to controlling interest |
|
|
| Basic |
$ |
0.77 |
|
$ |
0.66 |
|
| Diluted |
$ |
0.77 |
|
$ |
0.65 |
|
| |
|
|
| Weighted average common
shares outstanding |
|
|
| Basic |
|
22,965 |
|
|
22,904 |
|
| Diluted |
|
23,135 |
|
|
23,114 |
|
| |
| Astec Industries, Inc. |
|
| Segment Revenues and Profits |
|
| For the three months ended March 31, 2016 and
2015 |
|
| (in thousands) |
|
| (unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate Group |
Total |
|
|
2016 Revenues |
|
153,114 |
|
|
92,488 |
|
|
33,119 |
|
|
- |
|
|
278,721 |
|
|
|
2015 Revenues |
|
135,045 |
|
|
106,412 |
|
|
47,291 |
|
|
- |
|
|
288,748 |
|
|
|
Change $ |
|
18,069 |
|
|
(13,924 |
) |
|
(14,172 |
) |
|
- |
|
|
(10,027 |
) |
|
|
Change % |
|
13.4 |
% |
|
(13.1 |
%) |
|
(30.0 |
%) |
|
- |
|
|
(3.5 |
%) |
|
|
|
|
|
|
|
|
|
|
2016 Gross Profit (Loss) |
|
39,837 |
|
|
25,148 |
|
|
7,082 |
|
|
(111 |
) |
|
71,956 |
|
|
|
2016 Gross Profit % |
|
26.0 |
% |
|
27.2 |
% |
|
21.4 |
% |
|
- |
|
|
25.8 |
% |
|
|
2015 Gross Profit |
|
30,946 |
|
|
25,972 |
|
|
9,119 |
|
|
8 |
|
|
66,045 |
|
|
|
2015 Gross Profit % |
|
22.9 |
% |
|
24.4 |
% |
|
19.3 |
% |
|
- |
|
|
22.9 |
% |
|
|
Change |
|
8,891 |
|
|
(824 |
) |
|
(2,037 |
) |
|
(119 |
) |
|
5,911 |
|
|
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
21,863 |
|
|
9,538 |
|
|
(192 |
) |
|
(14,226 |
) |
|
16,983 |
|
|
|
2015 Profit (Loss) |
|
15,511 |
|
|
11,594 |
|
|
163 |
|
|
(11,965 |
) |
|
15,303 |
|
|
|
Change $ |
|
6,352 |
|
|
(2,056 |
) |
|
(355 |
) |
|
(2,261 |
) |
|
1,680 |
|
|
|
Change % |
|
41.0 |
% |
|
(17.7 |
%) |
|
(217.8 |
%) |
|
(18.9 |
%) |
|
11.0 |
% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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): |
|
|
|
|
|
|
|
|
|
| |
|
Three months ended March 31 |
|
|
| |
|
|
2016 |
|
|
2015 |
|
Change $ |
|
|
| Total
profit for all segments |
$ |
16,983 |
|
$ |
15,303 |
|
$ |
1,680 |
|
|
|
| Recapture
(elimination) of intersegment profit |
|
695 |
|
|
(386 |
) |
|
1,081 |
|
|
|
| Net loss
attributable to non-controlling interest |
|
65 |
|
|
188 |
|
|
(123 |
) |
|
|
| Net income attributable to controlling interest |
$ |
17,743 |
|
$ |
15,105 |
|
$ |
2,638 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Astec Industries, Inc. |
|
|
| Backlog by Segment |
|
|
| March 31, 2016 and 2015 |
|
|
| (in thousands) |
|
|
| (Unaudited) |
|
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
|
2016 Backlog |
|
326,039 |
|
|
79,128 |
|
|
27,656 |
|
|
432,823 |
|
|
|
|
2015 Backlog |
|
127,029 |
|
|
77,529 |
|
|
86,610 |
|
|
291,168 |
|
|
|
|
Change $ |
|
199,010 |
|
|
1,599 |
|
|
(58,954 |
) |
|
141,655 |
|
|
|
|
Change % |
|
156.7 |
% |
|
2.1 |
% |
|
(68.1 |
%) |
|
48.7 |
% |
|
|
| |
|
|
|
|
|
|
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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