Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their fourth quarter and year ended December 31, 2017.
Net sales for the fourth quarter of 2017 were
$312.4 million compared to $326.6 million for the fourth quarter of
2016, a 4.3% decrease. Domestic sales decreased 7.4% to $245.4
million for the fourth quarter of 2017 from $265.0 million for the
fourth quarter of 2016. International sales were $67.0
million for the fourth quarter of 2017 compared to $61.6 million
for the fourth quarter of 2016, an increase of 8.7%.
Earnings for the fourth quarter of 2017 were
$10.9 million, or $0.47 per share, including an income tax benefit
from U.S. Tax Reform legislation of $1.1 million, compared to $12.4
million, or $0.53 per diluted share, for the fourth quarter of
2016, a decrease of 11.3% per diluted share.
Net sales for 2017 were $1.185 billion compared
to $1.147 billion for 2016, a 3.3% increase. Domestic sales
decreased 1.0% to $932.3 million for 2017 from $941.3 million for
2016. International sales were $252.4 million for 2017
compared to $206.2 million for 2016, an increase of
22.5%.
Earnings for 2017 were $37.8 million, or $1.63
per diluted share, compared to $55.2 million, or $2.38 per diluted
share, for 2016, a decrease of 31.5% per diluted share. As
previously announced, the Company initiated significant design
upgrades to its customers’ Georgia and Arkansas wood pellet plants
to meet full production rates, which negatively impacted earnings
per share by approximately $0.59 during the third quarter of
2017.
Commenting on the announcement, Benjamin G.
Brock, Chief Executive Officer, stated, “We were pleased to exceed
our previously announced earnings projection for the quarter while
increasing our backlog to a historically strong $411.5
million. Given our backlog, quote activity and conversations
with our customers in both domestic and international markets we
are optimistic on our outlook. Our customers are experiencing
good market conditions and we are excited for the opportunity to
have improved results in 2018.”
The Company’s backlog at December 31, 2017 was
$411.5 million compared to $361.8 million at December 31, 2016, an
increase of $49.6 million or 13.7%. Domestic backlog
increased 12.3% to $335.9 million at December 31, 2017 from $299.1
million at December 31, 2016. The international backlog at
December 31, 2017 was $75.6 million compared to $62.7 million at
December 31, 2016, an increase of 20.5%. Excluding pellet
plant backlogs, the Company’s December 31, 2017 backlog increased
$57.3 million, or 22.9%, compared to December 31, 2016. All
backlog numbers for prior periods have been recast to include the
backlog of RexCon, Inc. acquired in October, 2017.
Consolidated financial information for the
fourth quarter and year ended December 31, 2017 and additional
information related to segment revenues and profits are attached as
addenda to this press release.
Investor Conference Call and Web
Simulcast
Astec will conduct a conference call on Tuesday,
February 20, 2018 at 10:00 A.M. Eastern Time to review its fourth
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 Tuesday, March 6, 2018 by dialing
(877) 481-4010, or (919) 882-2331 for international callers,
Conference ID #25199. 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.
Astec Industries, Inc. is a manufacturer of
specialized equipment for asphalt road building; aggregate
processing; oil, gas and water well drilling; wood processing and
concrete production. 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, concrete 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. 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,
2016.
For Additional Information Contact: Benjamin G.
Brock Chief Executive Officer Phone: (423) 867-4210 Fax: (423)
867-4127 E-mail: bbrock@astecindustries.com orDavid C.
Silvious Vice President and Chief Financial OfficerPhone: (423)
899-5898Fax: (423) 899-4456 E-mail:
dsilvious@astecindustries.com or Stephen C. AndersonVice
President, Director of Investor Relations & Corporate
SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail:
sanderson@astecindustries.com
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Astec Industries, Inc. |
|
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Consolidated Balance Sheets |
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(in thousands) |
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(unaudited) |
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Dec 31 |
Dec 31 |
|
|
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2017 |
2016 |
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Assets |
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Current assets |
|
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|
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Cash and cash equivalents |
$ |
62,280 |
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$ |
82,371 |
|
|
|
Investments |
|
1,624 |
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|
1,024 |
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|
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Receivables, net |
|
119,952 |
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|
110,673 |
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Inventories |
|
391,379 |
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|
360,404 |
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Prepaid expenses and other |
|
27,734 |
|
|
22,361 |
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Total current assets |
|
602,969 |
|
|
576,833 |
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|
|
Property and equipment, net |
|
190,396 |
|
|
180,538 |
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Other assets |
|
96,214 |
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|
86,230 |
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Total assets |
$ |
889,579 |
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$ |
843,601 |
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Liabilities and equity |
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Current liabilities |
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Accounts payable - trade |
$ |
60,417 |
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$ |
57,297 |
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Other current liabilities |
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118,729 |
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111,564 |
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Total current liabilities |
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179,146 |
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168,861 |
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Non-current liabilities |
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23,668 |
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25,899 |
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Total equity |
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686,765 |
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648,841 |
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Total liabilities and equity |
$ |
889,579 |
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$ |
843,601 |
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Astec Industries, Inc. |
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Consolidated Statements of Income |
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(in thousands, except per share
data) |
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(unaudited) |
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Three Months Ended |
Twelve Months Ended |
|
Dec 31 |
Dec 31 |
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Net sales |
$ |
312,375 |
|
$ |
326,564 |
|
$ |
1,184,739 |
|
$ |
1,147,431 |
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Cost of sales |
|
249,625 |
|
|
262,092 |
|
|
941,610 |
|
|
882,162 |
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Gross profit |
|
62,750 |
|
|
64,472 |
|
|
243,129 |
|
|
265,269 |
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Selling, general, administrative & engineering expenses |
|
44,756 |
|
|
45,398 |
|
|
187,592 |
|
|
178,114 |
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Income from operations |
|
17,994 |
|
|
19,074 |
|
|
55,537 |
|
|
87,155 |
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Interest expense |
|
202 |
|
|
338 |
|
|
840 |
|
|
1,395 |
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Other |
|
702 |
|
|
63 |
|
|
2,725 |
|
|
1,506 |
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Income before income taxes |
|
18,494 |
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18,799 |
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57,422 |
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87,266 |
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Income taxes |
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7,572 |
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|
6,413 |
|
|
19,627 |
|
|
32,107 |
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Net income attributable to controlling interest |
$ |
10,922 |
|
$ |
12,386 |
|
$ |
37,795 |
|
$ |
55,159 |
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|
|
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|
|
Earnings
per Common Share |
|
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Net
income attributable to controlling interest |
|
|
|
|
Basic |
$ |
0.47 |
|
$ |
0.54 |
|
$ |
1.64 |
|
$ |
2.40 |
|
Diluted |
$ |
0.47 |
|
$ |
0.53 |
|
$ |
1.63 |
|
$ |
2.38 |
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Weighted average common
shares outstanding |
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Basic |
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23,033 |
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|
23,002 |
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23,025 |
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|
22,992 |
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Diluted |
|
23,194 |
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23,154 |
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|
23,184 |
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|
23,142 |
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Astec Industries, Inc. |
Segment Revenues and Profits |
For the three months ended December 31, 2017 and
2016 |
(in thousands) |
(unaudited) |
|
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Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
2017 Revenues |
$ |
146,666 |
|
$ |
96,515 |
|
$ |
69,194 |
|
$ |
- |
|
$ |
312,375 |
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2016 Revenues |
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194,090 |
|
|
82,367 |
|
|
50,107 |
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|
- |
|
|
326,564 |
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Change $ |
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(47,424) |
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|
14,148 |
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|
19,087 |
|
|
- |
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|
(14,189) |
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Change % |
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(24.4%) |
|
|
17.2% |
|
|
38.1% |
|
|
- |
|
|
(4.3%) |
|
|
|
|
|
|
|
2017 Gross Profit |
|
26,632 |
|
|
19,140 |
|
|
16,601 |
|
|
377 |
|
|
62,750 |
|
2017 Gross Profit % |
|
18.2% |
|
|
19.8% |
|
|
24.0% |
|
|
- |
|
|
20.1% |
|
2016 Gross Profit |
|
34,498 |
|
|
19,128 |
|
|
10,752 |
|
|
94 |
|
|
64,472 |
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2016 Gross Profit % |
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17.8% |
|
|
23.2% |
|
|
21.5% |
|
|
- |
|
|
19.7% |
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Change |
|
(7,866) |
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|
12 |
|
|
5,849 |
|
|
283 |
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|
(1,722) |
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2017 Profit (Loss) |
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11,096 |
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|
6,388 |
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|
5,864 |
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(13,297) |
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|
10,051 |
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2016 Profit (Loss) |
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20,088 |
|
|
6,742 |
|
|
908 |
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|
(15,247) |
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|
12,491 |
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Change $ |
|
(8,992) |
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|
(354) |
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|
4,956 |
|
|
1,950 |
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|
(2,440) |
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Change % |
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(44.8%) |
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|
(5.3%) |
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545.8% |
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12.8% |
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(19.5%) |
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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): |
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Three months ended December 31 |
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2017 |
|
|
2016 |
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Change $ |
|
Total
profit for all segments |
$ |
10,051 |
|
$ |
12,491 |
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$ |
(2,440) |
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Recapture
(elimination) of intersegment profit |
|
803 |
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|
(157) |
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|
960 |
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|
Net
loss attributable to non-controlling interest |
|
68 |
|
|
52 |
|
|
16 |
|
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Net income attributable to controlling interest |
$ |
10,922 |
|
$ |
12,386 |
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$ |
(1,464) |
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Astec Industries, Inc. |
Segment Revenues and Profits |
For the twelve months ended December 31, 2017 and
2016 |
(in thousands) |
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
2017 Revenues |
$ |
553,691 |
|
$ |
403,720 |
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$ |
227,328 |
|
$ |
- |
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$ |
1,184,739 |
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2016 Revenues |
|
608,908 |
|
|
359,760 |
|
|
178,763 |
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|
- |
|
|
1,147,431 |
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Change $ |
|
(55,217) |
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|
43,960 |
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|
48,565 |
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|
- |
|
|
37,308 |
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Change % |
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(9.1%) |
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|
12.2% |
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|
27.2% |
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|
- |
|
|
3.3% |
|
|
|
|
|
|
|
2017 Gross Profit |
|
93,027 |
|
|
93,792 |
|
|
55,774 |
|
|
536 |
|
|
243,129 |
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2017 Gross Profit % |
|
16.8% |
|
|
23.2% |
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|
24.5% |
|
|
- |
|
|
20.5% |
|
2016 Gross Profit |
|
135,848 |
|
|
91,352 |
|
|
37,820 |
|
|
249 |
|
|
265,269 |
|
2016 Gross Profit % |
|
22.3% |
|
|
25.4% |
|
|
21.2% |
|
|
- |
|
|
23.1% |
|
Change |
|
(42,821) |
|
|
2,440 |
|
|
17,954 |
|
|
287 |
|
|
(22,140) |
|
|
|
|
|
|
|
2017 Profit (Loss) |
|
26,641 |
|
|
35,748 |
|
|
16,219 |
|
|
(40,963) |
|
|
37,645 |
|
2016 Profit (Loss) |
|
71,482 |
|
|
34,877 |
|
|
4,145 |
|
|
(55,992) |
|
|
54,512 |
|
Change $ |
|
(44,841) |
|
|
871 |
|
|
12,074 |
|
|
15,029 |
|
|
(16,867) |
|
Change % |
|
(62.7%) |
|
|
2.5% |
|
|
291.3% |
|
|
26.8% |
|
|
(30.9%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
2017 |
|
2016 |
|
Change $ |
|
Total
profit for all segments |
$ |
37,645 |
|
$ |
54,512 |
|
$ |
(16,867) |
|
|
Recapture
(elimination) of intersegment profit
|
|
(55) |
|
|
476 |
|
|
(531) |
|
|
Net loss
attributable to non-controlling interest |
|
205 |
|
|
171 |
|
|
34 |
|
|
Net income attributable to controlling interest |
$ |
37,795 |
|
$ |
55,159 |
|
$ |
(17,364) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries, Inc. |
|
Backlog by Segment |
|
December 31, 2017 and 2016 |
|
(in thousands) |
|
(unaudited) |
|
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
2017 Backlog |
$ |
239,495 |
|
$ |
116,987 |
|
$ |
54,987 |
|
$ |
411,469 |
|
|
2016 Backlog |
|
232,224 |
|
|
88,951 |
|
|
40,656 |
|
|
361,831 |
|
|
Change $ |
|
7,271 |
|
|
28,036 |
|
|
14,331 |
|
|
49,638 |
|
|
Change % |
|
3.1% |
|
|
31.5% |
|
|
35.2% |
|
|
13.7% |
|
|
|
|
|
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