Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their fourth quarter and year ended December 31, 2016.
Net sales for the fourth quarter of 2016 were
$326.6 million compared to $215.0 million for the fourth quarter of
2015, a 52% increase. Earnings for the fourth quarter of 2016
were $12.4 million or $0.53 per diluted share compared to $3.6
million or $0.16 per diluted share in the fourth quarter of 2015,
an increase in earnings per share of 231%.
Domestic sales increased 65% to $265.0 million
for the fourth quarter of 2016 from $160.3 million for the fourth
quarter of 2015. International sales increased 13% to $61.6
million for the fourth quarter of 2016 from $54.7 million for the
fourth quarter of 2015.
Net sales for 2016 were $1.147 billion compared
to $983.2 million for 2015, a 17% increase. Earnings for 2016
were $55.2 million or $2.38 per diluted share compared to $32.8
million or $1.42 per diluted share for 2015, a 68% increase in
earnings per share.
Domestic sales increased 30% to $941.3 million
for 2016 from $722.3 million for 2015. International sales
were $206.2 million for 2016 compared to $260.9 million for 2015, a
21% decrease.
The Company’s domestic backlog increased 13% to
$294.8 million at December 31, 2016 from $261.8 million at December
31, 2015. The international backlog at December 31, 2016 was
$62.6 million compared to $54.1 million at December 31, 2015, an
increase of 16%. Total backlog increased 13% to a year-end
record of $357.4 million at December 31, 2016 from $315.9 million
at December 31, 2015.
Consolidated financial information for the
quarter and year ended December 31, 2016 and additional information
related to segment revenues and profits are attached as addenda to
this press release.
Commenting on the announcement of quarterly and
annual results, Benjamin G. Brock, Chief Executive Officer, stated,
“We were pleased with our results for the fourth quarter and for
the year. We were able to grow revenues and net income both
quarter over quarter and year over year. At the same time, we
were able to grow our backlog at December 31, 2016 to $357.4
million, a December record.”
Mr. Brock continued, “The domestic market was
strong for our Infrastructure Group’s products targeted at the road
construction industry and the group also recognized better than
expected wood pellet plant revenues. Our Aggregate and Mining
group started to see an improvement in the domestic market for
products targeted at traditional rock quarries while the mining
market continued to be slow. Our Energy Group products
targeted at specialized industrial markets saw an increase during
the quarter, while we experienced a slight increase in quote and
order activity in the oil and gas markets.”
Mr. Brock concluded, “Given these positive
developments, and our order activity in January, we are optimistic
about 2017. Our backlog at January 31, 2017 was $386.3
million, a record high for January. Some of these orders are
for new equipment designs that have the potential to carry lower
margin and/or higher than normal warranty expense in the first half
of this year. However, the introduction of new products is
essential for our future. While the increase in order
activity is a good sign for the year ahead, we still face
significant challenges on U.S. exports given the continued strength
of the U.S. dollar.”
Investor Conference Call and Web
Simulcast
Astec will conduct a conference call on February
21, 2017, at 10:00 A.M. Eastern Time to review its December 31,
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, March 7, 2017 by dialing
(877) 481-4010, or (919) 882-2331 for international callers, Replay
ID# 10240. 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 low oil prices, the global mining slow
down, the strong U.S. Dollar, and the impact 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, 2015.
| Astec Industries, Inc. |
|
|
| Consolidated Balance Sheets |
|
|
| (in thousands) |
|
|
| (unaudited) |
|
|
| |
|
|
|
|
Dec 31 |
Dec 31 |
|
|
|
|
2016 |
2015 |
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
82,371 |
$ |
25,062 |
|
|
|
Investments |
|
1,024 |
|
1,539 |
|
|
|
Receivables, net |
|
110,673 |
|
101,997 |
|
|
|
Inventories |
|
360,404 |
|
384,776 |
|
|
|
Prepaid expenses and other |
|
22,361 |
|
28,423 |
|
|
|
Total current assets |
|
576,833 |
|
541,797 |
|
|
|
Property and equipment, net |
|
180,538 |
|
170,206 |
|
|
|
Other assets |
|
86,230 |
|
65,350 |
|
|
|
Total assets |
$ |
843,601 |
$ |
777,353 |
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable - trade |
$ |
57,297 |
$ |
48,385 |
|
|
|
Other current liabilities |
|
111,564 |
|
93,627 |
|
|
|
Total current liabilities |
|
168,861 |
|
142,012 |
|
|
|
Non-current liabilities |
|
25,899 |
|
25,483 |
|
|
|
Total equity |
|
648,841 |
|
609,858 |
|
|
|
Total liabilities and equity |
$ |
843,601 |
$ |
777,353 |
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| Astec Industries, Inc. |
| Consolidated Statements of Income |
| (in thousands, except per share
data) |
| (unaudited) |
| |
|
|
Three Months Ended |
Twelve Months Ended |
|
|
Dec 31 |
Dec 31 |
|
|
2016 |
2015 |
2016 |
2015 |
|
Net sales |
$ |
326,563 |
$ |
215,017 |
$ |
1,147,431 |
$ |
983,157 |
|
Cost of sales |
|
262,091 |
|
169,590 |
|
882,162 |
|
764,314 |
|
Gross profit |
|
64,472 |
|
45,427 |
|
265,269 |
|
218,843 |
|
Selling, general, administrative & engineering expenses |
|
45,398 |
|
40,722 |
|
178,115 |
|
168,856 |
|
Income from operations |
|
19,074 |
|
4,705 |
|
87,154 |
|
49,987 |
|
Interest expense |
|
338 |
|
389 |
|
1,395 |
|
1,611 |
|
Other |
|
63 |
|
1,216 |
|
1,507 |
|
4,428 |
|
Income before income taxes |
|
18,799 |
|
5,532 |
|
87,266 |
|
52,804 |
|
Income taxes |
|
6,413 |
|
1,937 |
|
32,107 |
|
20,007 |
|
Net income attributable to controlling interest |
$ |
12,386 |
$ |
3,595 |
$ |
55,159 |
$ |
32,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Earnings
per Common Share |
|
|
|
|
| Net
income attributable to controlling interest |
|
|
|
|
|
Basic |
$ |
0.54 |
$ |
0.16 |
$ |
2.40 |
$ |
1.43 |
|
Diluted |
$ |
0.53 |
$ |
0.16 |
$ |
2.38 |
$ |
1.42 |
|
|
|
|
|
|
| |
|
|
|
|
| Weighted average common
shares outstanding |
|
|
|
|
|
Basic |
|
23,002 |
|
22,947 |
|
22,992 |
|
22,934 |
|
Diluted |
|
23,154 |
|
23,124 |
|
23,142 |
|
23,120 |
| |
|
|
|
|
| Astec Industries, Inc. |
|
| Segment Revenues and Profits |
|
| For the three months ended December 31, 2016 and
2015 |
|
| (in thousands) |
|
| (unaudited) |
|
|
|
Infrastructure Group |
Aggregate and MiningGroup |
Energy Group |
Corporate |
Total |
|
|
2016 Revenues |
$ |
194,090 |
|
$ |
82,367 |
|
$ |
50,106 |
|
$ |
- |
|
$ |
326,563 |
|
|
|
2015 Revenues |
|
91,969 |
|
|
85,023 |
|
|
38,025 |
|
|
- |
|
|
215,017 |
|
|
|
Change $ |
|
102,121 |
|
|
(2,656 |
) |
|
12,081 |
|
|
- |
|
|
111,546 |
|
|
|
Change % |
|
111.0 |
% |
|
(3.1 |
%) |
|
31.8 |
% |
|
- |
|
|
51.9 |
% |
|
|
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
34,498 |
|
|
19,128 |
|
|
10,752 |
|
|
94 |
|
|
64,472 |
|
|
|
2016 Gross Profit % |
|
17.8 |
% |
|
23.2 |
% |
|
21.5 |
% |
|
- |
|
|
19.7 |
% |
|
|
2015 Gross Profit |
|
18,672 |
|
|
19,319 |
|
|
6,831 |
|
|
605 |
|
|
45,427 |
|
|
|
2015 Gross Profit % |
|
20.3 |
% |
|
22.7 |
% |
|
18.0 |
% |
|
- |
|
|
21.1 |
% |
|
|
Change |
|
15,826 |
|
|
(191 |
) |
|
3,921 |
|
|
(511 |
) |
|
19,045 |
|
|
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
20,088 |
|
|
6,742 |
|
|
908 |
|
|
(15,247 |
) |
|
12,491 |
|
|
|
2015 Profit (Loss) |
|
4,418 |
|
|
5,249 |
|
|
804 |
|
|
(7,470 |
) |
|
3,001 |
|
|
|
Change $ |
|
15,670 |
|
|
1,493 |
|
|
104 |
|
|
(7,777 |
) |
|
9,490 |
|
|
|
Change % |
|
354.7 |
% |
|
28.4 |
% |
|
12.9 |
% |
|
(104.1 |
%) |
|
316.2 |
% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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 December 31 |
|
|
| |
|
2016 |
2015 |
Change $ |
|
|
| Total
profit for all segments |
$ |
12,491 |
|
$ |
3,001 |
|
$ |
9,490 |
|
|
|
| Recapture
(elimination) of intersegment profit |
|
(157 |
) |
|
432 |
|
|
(589 |
) |
|
|
| Net loss
attributable to non-controlling interest |
|
52 |
|
|
162 |
|
|
(110 |
) |
|
|
| Net income attributable to controlling interest |
$ |
12,386 |
|
$ |
3,595 |
|
$ |
8,791 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Astec Industries, Inc. |
|
| Segment Revenues and Profits |
|
| For the twelve months ended December 31, 2016 and
2015 |
|
| (in thousands) |
|
| (unaudited) |
|
|
|
Infrastructure Group |
Aggregate and MiningGroup |
EnergyGroup |
Corporate |
Total |
|
|
2016 Revenues |
$ |
608,908 |
|
$ |
359,760 |
|
$ |
178,763 |
|
$ |
- |
|
$ |
1,147,431 |
|
|
|
2015 Revenues |
|
428,737 |
|
|
370,813 |
|
|
183,607 |
|
|
- |
|
|
983,157 |
|
|
|
Change $ |
|
180,171 |
|
|
(11,053 |
) |
|
(4,844 |
) |
|
- |
|
|
164,274 |
|
|
|
Change % |
|
42.0 |
% |
|
(3.0 |
%) |
|
(2.6 |
%) |
|
- |
|
|
16.7 |
% |
|
|
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
135,848 |
|
|
91,352 |
|
|
37,820 |
|
|
249 |
|
|
265,269 |
|
|
|
2016 Gross Profit % |
|
22.3 |
% |
|
25.4 |
% |
|
21.2 |
% |
|
- |
|
|
23.1 |
% |
|
|
2015 Gross Profit |
|
92,964 |
|
|
89,501 |
|
|
35,743 |
|
|
635 |
|
|
218,843 |
|
|
|
2015 Gross Profit % |
|
21.7 |
% |
|
24.1 |
% |
|
19.5 |
% |
|
- |
|
|
22.3 |
% |
|
|
Change |
|
42,884 |
|
|
1,851 |
|
|
2,077 |
|
|
(386 |
) |
|
46,426 |
|
|
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
71,482 |
|
|
34,877 |
|
|
4,145 |
|
|
(55,992 |
) |
|
54,512 |
|
|
|
2015 Profit (Loss) |
|
33,890 |
|
|
30,690 |
|
|
3,609 |
|
|
(36,623 |
) |
|
31,566 |
|
|
|
Change $ |
|
37,592 |
|
|
4,187 |
|
|
536 |
|
|
(19,369 |
) |
|
22,946 |
|
|
|
Change % |
|
110.9 |
% |
|
13.6 |
% |
|
14.9 |
% |
|
(52.9 |
%) |
|
72.7 |
% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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): |
|
|
|
|
|
|
|
|
|
|
| |
|
Twelve months ended December 31 |
|
|
| |
|
|
2016 |
|
|
2015 |
|
Change $ |
|
|
| Total
profit for all segments |
$ |
54,512 |
|
$ |
31,566 |
|
$ |
22,946 |
|
|
|
| Recapture
of intersegment profit |
|
476 |
|
|
400 |
|
|
76 |
|
|
|
| Net loss
attributable to non-controlling interest |
|
171 |
|
|
831 |
|
|
(660 |
) |
|
|
| Net income attributable to controlling interest |
$ |
55,159 |
|
$ |
32,797 |
|
$ |
22,362 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Astec Industries, Inc. |
|
|
| Backlog by Segment |
|
|
| December 31, 2016 and 2015 |
|
|
| (in thousands) |
|
|
| (unaudited) |
|
|
|
|
Infrastructure Group |
Aggregate and MiningGroup |
EnergyGroup |
Total |
|
|
|
2016 Backlog |
$ |
232,224 |
|
$ |
88,951 |
|
$ |
36,192 |
|
$ |
357,367 |
|
|
|
|
2015 Backlog |
|
203,830 |
|
|
74,484 |
|
|
37,596 |
|
|
315,910 |
|
|
|
|
Change $ |
|
28,394 |
|
|
14,467 |
|
|
(1,404 |
) |
|
41,457 |
|
|
|
|
Change % |
|
13.9 |
% |
|
19.4 |
% |
|
(3.7 |
%) |
|
13.1 |
% |
|
|
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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