Astec Industries Reports First Quarter 2018 Results
April 24 2018 - 7:00AM
Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their first quarter ended March 31, 2018.
Net sales for the first quarter of 2018 were
$325.5 million compared to $318.4 million for the first quarter of
2017, a 2.2% increase. Domestic sales increased 6.5% to
$270.1 million for the first quarter of 2018 from $253.5 million
for the first quarter of 2017. International sales decreased
14.7% to $55.4 million for the first quarter of 2018 from $64.9
million for the first quarter of 2017.
Earnings for the first quarter of 2018 were
$20.3 million or $0.87 per diluted share, compared to $15.1 million
or $0.65 per diluted share in the first quarter of 2017, an
increase in earnings per share of 33.8%.
Commenting on the announcement of the quarterly
results, Benjamin G. Brock, Chief Executive Officer, stated, “We
are pleased with our first quarter financial results and our
increased backlog. While we have a good start to the year, we have
opportunities to improve. Our gross margin for the quarter
was 24% which puts us on our way toward our goal to exit 2018 at a
25% gross margin.”
Mr. Brock concluded, “Our $444.9 million backlog
is reflective of strong private and public work environments for
our customers. Given our backlog and customer feedback on
their markets, we are optimistic for 2018 as a whole.”
The Company’s backlog at March 31, 2018 was
$444.9 million, an increase of $67.3 million or 17.8% compared to
the March 31, 2017 backlog of $377.6 million. Domestic
backlog increased 11.6% to $341.1 million at March 31, 2018 from
$305.8 million at March 31, 2017. The international backlog
at March 31, 2018 was $103.8 million compared to $71.8 million at
March 31, 2017, an increase of 44.5%. Excluding all pellet
plant backlogs, the Company’s March 31, 2018 backlog increased
$69.3 million or 22.4% compared to March 31, 2017. All prior
year backlog amounts have been recast to include the backlog of
RexCon, Inc. which was acquired in October, 2017.
Consolidated financial information for the first
quarter ended March 31, 2018 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 April
24, 2018, 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 Tuesday, May 8, 2018 by dialing (877)
481-4010, or (919) 882-2331 for international callers, Replay ID#
27852. 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; 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, commercial and industrial burners, 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,
2017.
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.comor Stephen C.
AndersonVice President, Director of Investor Relations &
Corporate SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail:
sanderson@astecindustries.com
|
|
|
Astec Industries, Inc. |
Consolidated Balance Sheets |
(in thousands) |
(unaudited) |
|
|
Mar 31 |
Mar 31 |
|
2018 |
2017 |
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ |
41,940 |
$ |
55,401 |
Investments |
|
1,751 |
|
1,408 |
Receivables, net |
|
153,854 |
|
156,222 |
Inventories |
|
411,159 |
|
372,570 |
Prepaid expenses and other |
|
23,533 |
|
20,731 |
Total current assets |
|
632,237 |
|
606,332 |
Property and equipment, net |
|
189,287 |
|
182,223 |
Other assets |
|
96,841 |
|
85,933 |
Total assets |
$ |
918,365 |
$ |
874,488 |
Liabilities and equity |
|
|
Current liabilities |
|
|
Accounts payable - trade |
$ |
68,833 |
$ |
73,807 |
Other current liabilities |
|
117,609 |
|
110,828 |
Total current liabilities |
|
186,442 |
|
184,635 |
Non-current liabilities |
|
23,847 |
|
25,503 |
Total equity |
|
708,076 |
|
664,350 |
Total liabilities and equity |
$ |
918,365 |
$ |
874,488 |
|
|
|
|
|
|
Astec Industries, Inc. |
Consolidated Statements of Income |
(in thousands, except per share
data) |
(unaudited) |
|
|
Three Months Ended |
|
Mar 31 |
|
2018 |
2017 |
Net sales |
$ |
325,453 |
$ |
318,401 |
Cost of sales |
|
247,448 |
|
242,630 |
Gross profit |
|
78,005 |
|
75,771 |
Selling, general, administrative & engineering expenses |
|
52,078 |
|
53,121 |
Income from operations |
|
25,927 |
|
22,650 |
Interest expense |
|
150 |
|
265 |
Other |
|
512 |
|
552 |
Income before income taxes |
|
26,289 |
|
22,937 |
Income taxes |
|
6,022 |
|
7,817 |
Net income attributable to controlling interest |
$ |
20,267 |
$ |
15,120 |
|
|
|
|
|
|
Earnings
per Common Share |
|
|
Net
income attributable to controlling interest |
|
|
Basic |
$ |
0.88 |
$ |
0.66 |
Diluted |
$ |
0.87 |
$ |
0.65 |
|
|
|
Weighted average common
shares outstanding |
|
|
Basic |
|
23,045 |
|
23,013 |
Diluted |
|
23,236 |
|
23,176 |
|
|
|
Astec Industries, Inc. |
|
Segment Revenues and Profits |
|
For the three months ended March 31, 2018 and
2017 |
|
(in thousands) |
|
(unaudited) |
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate Group |
Total |
|
2018 Revenues |
147,094 |
119,067 |
59,292 |
- |
325,453 |
|
2017 Revenues |
165,243 |
100,613 |
52,545 |
- |
318,401 |
|
Change $ |
(18,149) |
18,454 |
6,747 |
- |
7,052 |
|
Change % |
(11.0%) |
18.3% |
12.8% |
- |
2.2% |
|
|
|
|
|
|
|
|
2018 Gross Profit |
33,280 |
29,289 |
15,286 |
150 |
78,005 |
|
2018 Gross Profit % |
22.6% |
24.6% |
25.8% |
- |
24.0% |
|
2017 Gross Profit |
37,801 |
25,023 |
12,887 |
60 |
75,771 |
|
2017 Gross Profit % |
22.9% |
24.9% |
24.5% |
- |
23.8% |
|
Change |
(4,521) |
4,266 |
2,399 |
90 |
2,234 |
|
|
|
|
|
|
|
|
2018 Profit (Loss) |
14,852 |
13,110 |
4,611 |
(11,248) |
21,325 |
|
2017 Profit (Loss) |
18,180 |
8,428 |
2,729 |
(14,428) |
14,909 |
|
Change $ |
(3,328) |
4,682 |
1,882 |
3,180 |
6,416 |
|
Change % |
(18.3%) |
55.6% |
69.0% |
22.0% |
43.0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
2018 |
2017 |
Change $ |
|
|
Total
profit for all segments |
$ |
21,325 |
|
$ |
14,909 |
|
$ |
6,416 |
|
|
|
Recapture
(elimination) of intersegment profit |
|
(1,109 |
) |
|
171 |
|
|
(1,280 |
) |
|
|
Net loss
attributable to non-controlling interest |
|
51 |
|
|
40 |
|
|
11 |
|
|
|
Net income attributable to controlling interest |
$ |
20,267 |
|
$ |
15,120 |
|
$ |
5,147 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries, Inc. |
|
|
Backlog by Segment |
|
|
March 31, 2018 and 2017 |
|
|
(in thousands) |
|
|
(Unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
2018 Backlog |
230,649 |
138,687 |
75,591 |
444,927 |
|
|
2017 Backlog |
221,849 |
100,043 |
55,677 |
377,569 |
|
|
Change $ |
8,800 |
38,644 |
19,914 |
67,358 |
|
|
Change % |
4.0% |
38.6% |
35.8% |
17.8% |
|
|
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|
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