Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the third quarter of 2021.
Third quarter of 2021 net sales of $267.0
million increased 15.4% compared to $231.4 million for the third
quarter of 2020. Domestic sales increased $20.7 million or 11.4%
due mainly to pricing initiatives, stronger asphalt plant sales,
incremental concrete plant sales from acquired businesses and
increases in aftermarket parts sales, partially offset by reduced
sales from the exit of our oil and gas drilling product lines.
International sales increased $14.9 million or 29.6% primarily due
to COVID-19 related temporary site closures in the prior year.
International sales increased primarily to customers in Canada,
Australia, Brazil and Asia.
Backlog as of September 30, 2021 of $620.5
million increased $402.0 million, or 184.0% compared to the backlog
of $218.5 million a year ago. Domestic backlog increased by 236.2%
to $508.6 million while international backlog increased by 66.5% to
$111.9 million.
Operating profit of $6.7 million in the third
quarter of 2021 increased 844.4% compared to an operating loss of
$0.9 million in the third quarter of 2020. Third quarter of 2021
adjusted operating income of $9.4 million, increased 147.4%
compared to $3.8 million for the third quarter of 2020. Adjusted
operating margin of 3.5% increased 180 basis points from 1.7% in
third quarter 2020 primarily due to increased sales and gross
profit. The additional operating profit partially offset increased
costs for centralization and infrastructure efforts associated with
our ongoing transformation initiatives.
The income tax rate for the quarter was (43.1)%
compared to (300.0)% in the prior year primarily due to valuation
allowance releases in Brazil and net research and development
credits. Adjusted third quarter tax rate was (23.9)% compared to
(10.0)% in the third quarter of 2020.
Net income of $9.3 million increased from $1.6
million in the third quarter of 2020, while diluted EPS of $0.41
increased from $0.07 in the third quarter of 2020. Adjusted net
income of $11.4 million increased 159.1% compared to the prior year
period, while Adjusted EPS of $0.50 increased 163.2% compared to
$0.19 for the third quarter of 2020. Adjusted EPS excludes $0.09 of
incremental costs, net of tax, driven by our transformation program
and footprint rationalization, partially offset by a net gain on
the sale of property.
EBITDA of $14.1 million increased $7.1 million,
or 101.4%, compared to the prior year EBITDA of $7.0 million.
Adjusted EBITDA of $16.8 million increased 58.5% compared to $10.6
million a year ago. Adjusted EBITDA margin increased 170 basis
points from 4.6% in the third quarter of 2020 largely driven by
pricing realization and improved sales volumes/mix combined with
manufacturing efficiencies, partially offset by inflation and
increased SG&A expenses.
"I am pleased with the commitment and tenacity
of the Astec team as we continue to work diligently and efficiently
to deliver solid results in the midst of continued global headwinds
from inflation, supply chain disruptions and labor challenges,"
said Barry Ruffalo, Chief Executive Officer of Astec. "Although for
the time being, the federal highway bill has been extended for a
short term versus long term period, we continue to see strong
organic market activity and opportunities for growth. We are still
in the early innings of our business evolution. Our record backlog,
strong aftermarket parts business and growing international sales
continue to demonstrate our ability to deliver value to our
customers and execute our strategy. Our sales in the quarter were a
third quarter record and overall results highlight the strength of
the ASTEC brand, including the deep customer relationships we have
invested in and grown over time. The OneASTEC business model and
our strategy to Simplify, Focus and Grow continue to drive
sustainable long-term value for our stakeholders."
Business Operations Update
Simplify, Focus and Grow Strategic
Transformation ("SFG") - We continue to execute on our strategic
transformation initiative focused on implementing new business
strategies and a new operating structure. This transformation was
launched in late 2019 and is concentrated on aligning our
operations under the OneASTEC business model with the strategic
pillars of Simplify, Focus and Grow. SFG is an ongoing, multi-year
program with the primary goals of optimizing our manufacturing
footprint and centralizing our business into common platforms and
operating models to reduce complexity and cost, improve
productivity and embed continuous improvement in our processes.
These efforts are considered critical to enabling us to operate
competitively and support future growth, which are expected to
broadly benefit our customers, partners, employees and
shareholders.
During 2019 and 2020 we consolidated certain of
our sites as a key part of these initiatives. We have one
additional site consolidation underway in 2021. Site consolidation
costs including headcount reductions, inventory movement and
facility closure costs are included in "Restructuring, Impairment
and Other Asset Charges, Net" in the Consolidated Statements of
Operations.
In addition, in late 2020 we launched a
multi-year phased implementation of a standardized enterprise
resource planning ("ERP") system across our global organization,
which will replace much of our existing disparate core financial
systems. The upgraded ERP will initially convert our internal
operations, manufacturing, finance, human capital resources
management and customer relationship systems to cloud-based
platforms. This new ERP system will provide for standardized
processes and integrated technology solutions that enable us to
better leverage automation and process efficiency. An
implementation of this scale is a major financial undertaking and
will require substantial time and attention of management and key
employees. Costs incurred, during the three and nine months ended
September 30, 2021, were $2.4 million and $7.7 million,
respectively, which represent costs directly associated with the
SFG initiative and which cannot be capitalized in accordance with
U.S. GAAP. These costs are included in "Selling, general and
administrative expenses" in the Consolidated Statements of
Operations.
Supply Chain - We actively manage our global
supply chain for constraints and volatility however, we are not
immune to disruptions caused by the recent surge in global demand.
Labor shortages at our vendors and logistics partners have
increased lead times for certain components used in our
manufacturing process. We have increased the frequency of
communications with our suppliers and customers to ensure business
continuity as well as anticipate and prepare for any new
developments.
COVID-19 - Our top priority continues to be
protecting our employees and their families, our customers and
suppliers and our operations from adverse impacts by taking
precautionary measures as directed by health authorities and local
governments. We continue to exercise diligence to ensure the health
and well-being of our employees, their families and the communities
in which we operate, while serving the needs of our customers.
Business operations were fully operational during the third quarter
of 2021.
Labor - In certain manufacturing locations, we
have experienced a shortage of necessary production personnel and
increasing labor costs to attract staff in our manufacturing
operations resulting in a variety of challenges in running our
operations efficiently to meet strong customer demand. We continue
to adjust our production schedules and manufacturing workload
distribution, outsource components, implement efficiency
improvements and actively modify our recruitment process and
compensation and benefits to attract and retain production
personnel in our manufacturing facilities.
Steel - Steel is a major component of our
equipment. Steel prices began increasing in the latter part of
2020. We have experienced further increases in steel pricing
throughout 2021 and continued increases could occur into 2022. We
continue to utilize strategies that include forward-looking
contracts and advanced steel purchases to ensure supply and
minimize the impact of price volatility.
Highway Funding - Federal funding provides a
significant portion of all highway, street, roadway and parking
construction in the United States. We believe federal funding
influences the purchasing decisions of our customers, who are
typically more amenable to making capital equipment purchases with
long-term federal legislation in place. Federal transportation
funding under the Fixing America's Surface Transportation Act
("FAST Act"), which expired on September 30, 2020, was temporarily
extended for one year through September 30, 2021 and was
subsequently further extended through December 3, 2021. We believe
a multi-year highway program (such as the FAST Act) will have a
positive impact on the road construction industry and allow our
customers to plan and execute longer term projects.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, November 3, 2021, at 8:30 A.M. Eastern Time, to
review its third quarter 2021 results as well as current business
conditions. The number to call for this interactive teleconference
is (877) 545-0523 (at least 10 minutes prior to the scheduled time
for the call). International callers should dial (973)
528-0016. You may also access a live webcast of the call by
visiting www.webcaster4.com/Webcast/Page/2146/43162. You
will need to give your name and company affiliation and reference
Astec Industries. An archived webcast will be available for 90 days
at www.astecindustries.com. The supplemental presentation
slides are available on the Astec Industries, Inc. website by
visiting
https://www.astecindustries.com/investor-relations/analyst-information/presentations.html.
A replay of the conference call will be
available through November 17, 2021 by dialing (877) 481-4010 or
(919) 882-2331 for international callers, Conference ID #
43162. A transcript of the conference call will be made
available under the Investor Relations section of the Astec
Industries, Inc. website within five business days after the
call.
About Astec
Astec, (www.astecindustries.com), is a
manufacturer of specialized equipment for asphalt road building,
aggregate processing and concrete production. Astec's
manufacturing operations are divided into two primary business
segments: Infrastructure Solutions that includes road building,
asphalt and concrete plants, thermal and storage solutions; and
Materials Solutions that include our aggregate processing and
mining equipment.
Safe Harbor Statements under the Private
Securities Litigation Reform Act of 1995
This News Release contains forward-looking
statements within the meaning of the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements
relate to, among other things, income, earnings, cash flows,
changes in operations, operating improvements, businesses in which
we operate and the United States and global economies. Statements
in News Release that are not historical are hereby identified as
"forward-looking statements" and may be indicated by words or
phrases such as "anticipates," "supports," "plans," "projects,"
"expects," "believes," "should," "would," "could," "hope,"
"forecast," "management is of the opinion," use of the future tense
and similar words or phrases. These forward-looking statements are
based largely on management's expectations, which are subject to a
number of known and unknown risks, uncertainties and other factors
discussed and described in our most recent Annual Report on Form
10-K, including those risks described in Part I, Item 1A. Risk
Factors thereof, and in other reports filed
subsequently by us with the Securities and Exchange Commission,
which may cause actual results, financial or otherwise, to be
materially different from those anticipated, expressed or implied
by the forward-looking statements. All forward-looking statements
included in this document are based on information available to us
on the date hereof, and we assume no obligation to update any such
forward-looking statements to reflect future events or
circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with
additional information regarding the Company's results, the Company
refers to various GAAP (U.S. generally accepted accounting
principles) and non-GAAP financial measures which management
believes provides useful information to investors. These non-GAAP
financial measures have no standardized meaning prescribed by U.S.
GAAP and therefore are unlikely to be comparable to the calculation
of similar measures for other companies. Management of the Company
does not intend these items to be considered in isolation or as a
substitute for the related GAAP measures. Nonetheless, this
non-GAAP information can be useful in understanding the Company's
operating results and the performance of its core business.
Management of the Company uses both GAAP and non-GAAP financial
measures to establish internal budgets and targets and to evaluate
the Company's financial performance against such budgets and
targets. A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in the appendix to
this News Release.
For Additional Information
Contact: Steve Anderson Senior Vice President of
Administration and Investor RelationsPhone: (423)
899-5898 Fax: (423)
899-4456 E-mail: sanderson@astecindustries.com
Astec Industries
Inc.Condensed Consolidated Statements of
Operations(In millions, except shares in thousands
and per share amounts; unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net sales |
|
$ |
267.0 |
|
|
|
$ |
231.4 |
|
|
|
$ |
829.4 |
|
|
|
$ |
785.5 |
|
|
Cost of sales |
|
204.7 |
|
|
|
181.2 |
|
|
|
631.6 |
|
|
|
602.3 |
|
|
Gross profit |
|
62.3 |
|
|
|
50.2 |
|
|
|
197.8 |
|
|
|
183.2 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general, administrative and engineering |
|
55.3 |
|
|
|
48.9 |
|
|
|
168.3 |
|
|
|
147.8 |
|
|
Restructuring, impairment and other asset charges, net |
|
0.3 |
|
|
|
2.2 |
|
|
|
1.8 |
|
|
|
10.3 |
|
|
Total operating expenses |
|
55.6 |
|
|
|
51.1 |
|
|
|
170.1 |
|
|
|
158.1 |
|
|
Operating income |
|
6.7 |
|
|
|
(0.9 |
) |
|
|
27.7 |
|
|
|
25.1 |
|
|
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
|
Interest expense |
|
(0.2 |
) |
|
|
— |
|
|
|
(0.6 |
) |
|
|
(0.2 |
) |
|
Other (expenses) income, net |
|
— |
|
|
|
1.3 |
|
|
|
0.3 |
|
|
|
2.0 |
|
|
Income from operations before income taxes |
|
6.5 |
|
|
|
0.4 |
|
|
|
27.4 |
|
|
|
26.9 |
|
|
Income tax (benefit)
provision |
|
(2.8 |
) |
|
|
(1.2 |
) |
|
|
0.4 |
|
|
|
(4.5 |
) |
|
Net income |
|
9.3 |
|
|
|
1.6 |
|
|
|
27.0 |
|
|
|
31.4 |
|
|
Net loss attributable to
noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
Net income attributable to controlling interest |
|
$ |
9.3 |
|
|
|
$ |
1.6 |
|
|
|
$ |
27.0 |
|
|
|
$ |
31.5 |
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.41 |
|
|
|
$ |
0.07 |
|
|
|
$ |
1.19 |
|
|
|
$ |
1.39 |
|
|
Diluted |
|
0.41 |
|
|
|
0.07 |
|
|
|
1.18 |
|
|
|
1.38 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
|
Basic |
|
22,761 |
|
|
|
22,615 |
|
|
|
22,713 |
|
|
|
22,593 |
|
|
Diluted |
|
22,914 |
|
|
|
22,946 |
|
|
|
22,923 |
|
|
|
22,838 |
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.41 |
|
|
|
$ |
0.07 |
|
|
|
$ |
1.18 |
|
|
|
$ |
1.38 |
|
|
Transformation program |
|
0.10 |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
Facility closures and
reduction in force (a) |
|
0.03 |
|
|
|
0.23 |
|
|
|
0.09 |
|
|
|
0.52 |
|
|
Asset impairment
(recovery) |
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.18 |
|
|
Gain on sale of property,
equipment and business, net |
|
(0.01 |
) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
Income taxes |
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
(0.10 |
) |
|
|
(0.15 |
) |
|
Adjusted EPS |
|
$ |
0.50 |
|
|
|
$ |
0.19 |
|
|
|
$ |
1.50 |
|
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
(a) Facility closures and reduction in force above include the
impact of a rounding adjustment |
Astec Industries
Inc.Segment Net Sales and
Profits(In millions; unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate |
|
Total |
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Net sales |
|
$ |
176.3 |
|
|
$ |
90.7 |
|
|
$ |
— |
|
|
|
$ |
267.0 |
|
|
$ |
558.0 |
|
|
$ |
271.4 |
|
|
$ |
— |
|
|
|
$ |
829.4 |
|
|
2020 Net sales |
|
151.1 |
|
|
80.3 |
|
|
— |
|
|
|
231.4 |
|
|
535.6 |
|
|
249.9 |
|
|
— |
|
|
|
785.5 |
|
|
Change $ |
|
25.2 |
|
|
10.4 |
|
|
— |
|
|
|
35.6 |
|
|
22.4 |
|
|
21.5 |
|
|
— |
|
|
|
43.9 |
|
|
Change % |
|
16.7 |
% |
|
13.0 |
% |
|
— |
|
% |
|
15.4 |
% |
|
4.2 |
% |
|
8.6 |
% |
|
— |
|
% |
|
5.6 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Gross profit |
|
39.9 |
|
|
22.4 |
|
|
— |
|
|
|
62.3 |
|
|
128.0 |
|
|
69.8 |
|
|
— |
|
|
|
197.8 |
|
|
2021 Gross profit % |
|
22.6 |
% |
|
24.7 |
% |
|
— |
|
% |
|
23.3 |
% |
|
22.9 |
% |
|
25.7 |
% |
|
— |
|
% |
|
23.8 |
|
% |
2020 Gross profit |
|
29.5 |
|
|
20.6 |
|
|
0.1 |
|
|
|
50.2 |
|
|
120.1 |
|
|
62.8 |
|
|
0.3 |
|
|
|
183.2 |
|
|
2020 Gross profit % |
|
19.5 |
% |
|
25.7 |
% |
|
N/M |
|
21.7 |
% |
|
22.4 |
% |
|
25.1 |
% |
|
N/M |
|
23.3 |
|
% |
Change $ |
|
10.4 |
|
|
1.8 |
|
|
(0.1 |
) |
|
|
12.1 |
|
|
7.9 |
|
|
7.0 |
|
|
(0.3 |
) |
|
|
14.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Profit / (loss) |
|
13.8 |
|
|
8.0 |
|
|
(12.8 |
) |
|
|
9.0 |
|
|
46.6 |
|
|
27.3 |
|
|
(47.5 |
) |
|
|
26.4 |
|
|
2020 Profit / (loss) |
|
6.3 |
|
|
7.2 |
|
|
(11.7 |
) |
|
|
1.8 |
|
|
37.7 |
|
|
21.7 |
|
|
(28.2 |
) |
|
|
31.2 |
|
|
Change $ |
|
7.5 |
|
|
0.8 |
|
|
(1.1 |
) |
|
|
7.2 |
|
|
8.9 |
|
|
5.6 |
|
|
(19.3 |
) |
|
|
(4.8 |
) |
|
Change % |
|
119.0 |
% |
|
11.1 |
% |
|
(9.4 |
) |
% |
|
400.0 |
% |
|
23.6 |
% |
|
25.8 |
% |
|
(68.4 |
) |
% |
|
(15.4 |
) |
% |
N/M = Not Meaningful
Segment net sales are reported net of intersegment sales.
Segment gross profit is net of profit on intersegment sales. A
reconciliation of total segment profits to the Company's net income
attributable to controlling interest is as follows (in millions;
unaudited):
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
Change $ |
|
2021 |
|
2020 |
|
Change $ |
Total profit for all segments |
|
$ |
9.0 |
|
|
$ |
1.8 |
|
|
|
$ |
7.2 |
|
|
$ |
26.4 |
|
|
$ |
31.2 |
|
|
$ |
(4.8 |
) |
|
Recapture (elimination) of
intersegment profit |
|
0.3 |
|
|
(0.2 |
) |
|
|
0.5 |
|
|
0.6 |
|
|
0.2 |
|
|
0.4 |
|
|
Net loss attributable to
noncontrolling interest |
|
— |
|
|
— |
|
|
|
— |
|
|
— |
|
|
0.1 |
|
|
(0.1 |
) |
|
Net income attributable to
controlling interest |
|
$ |
9.3 |
|
|
$ |
1.6 |
|
|
|
$ |
7.7 |
|
|
$ |
27.0 |
|
|
$ |
31.5 |
|
|
$ |
(4.5 |
) |
|
Astec Industries
Inc.Condensed Consolidated Balance
Sheets(In millions; unaudited)
|
September 30, 2021 |
|
December 31, 2020 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
164.6 |
|
|
$ |
158.6 |
|
Investments |
9.2 |
|
|
4.3 |
|
Trade receivables and contract assets, net |
145.8 |
|
|
115.9 |
|
Inventories, net |
282.8 |
|
|
249.7 |
|
Other current assets |
42.4 |
|
|
37.3 |
|
Total current assets |
644.8 |
|
|
565.8 |
|
Property, plant and equipment,
net |
167.5 |
|
|
172.8 |
|
Other long-term assets |
98.4 |
|
|
109.6 |
|
Total assets |
$ |
910.7 |
|
|
$ |
848.2 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
77.9 |
|
|
$ |
52.7 |
|
Other current liabilities |
134.1 |
|
|
117.6 |
|
Total current liabilities |
212.0 |
|
|
170.3 |
|
Long-term debt |
0.2 |
|
|
0.4 |
|
Other long-term
liabilities |
35.4 |
|
|
34.5 |
|
Total equity |
663.1 |
|
|
643.0 |
|
Total liabilities and
equity |
$ |
910.7 |
|
|
$ |
848.2 |
|
Astec Industries Inc.
Condensed Consolidated Statements of Cash Flows
(In millions; unaudited)
|
Nine Months Ended September 30, |
|
2021 |
|
2020 |
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
27.0 |
|
|
|
$ |
31.4 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
15.0 |
|
|
|
15.5 |
|
|
Amortization |
7.6 |
|
|
|
3.9 |
|
|
Provision for credit losses |
0.6 |
|
|
|
0.6 |
|
|
Provision for warranties |
8.5 |
|
|
|
7.1 |
|
|
Deferred compensation (benefit) expense |
— |
|
|
|
0.5 |
|
|
Share-based compensation |
4.6 |
|
|
|
4.8 |
|
|
Deferred tax provision |
0.3 |
|
|
|
14.0 |
|
|
Gain on disposition of property and equipment |
(0.5 |
) |
|
|
(0.8 |
) |
|
Gain on disposition of subsidiary |
— |
|
|
|
(1.1 |
) |
|
Asset impairment charges |
0.2 |
|
|
|
4.1 |
|
|
Distributions to SERP participants |
(2.4 |
) |
|
|
(1.2 |
) |
|
Change in operating assets and liabilities, excluding the effects
of acquisitions: |
|
|
|
Purchase of trading securities, net |
(2.4 |
) |
|
|
(0.5 |
) |
|
Receivables and other contract assets |
(31.3 |
) |
|
|
(2.0 |
) |
|
Inventories |
(33.4 |
) |
|
|
43.2 |
|
|
Prepaid expenses |
0.2 |
|
|
|
7.5 |
|
|
Other assets |
(3.0 |
) |
|
|
(1.7 |
) |
|
Accounts payable |
26.6 |
|
|
|
(8.0 |
) |
|
Accrued loss reserves |
0.1 |
|
|
|
0.2 |
|
|
Accrued payroll and related expenses |
9.3 |
|
|
|
1.0 |
|
|
Other accrued liabilities |
10.3 |
|
|
|
2.9 |
|
|
Accrued product warranty |
(8.3 |
) |
|
|
(7.3 |
) |
|
Customer deposits |
4.0 |
|
|
|
(18.0 |
) |
|
Income taxes payable/prepaid |
(5.7 |
) |
|
|
8.6 |
|
|
Other |
— |
|
|
|
(2.6 |
) |
|
Net cash provided by operating
activities |
27.3 |
|
|
|
102.1 |
|
|
Cash flows from
investing activities: |
|
|
|
Acquisitions, net of cash acquired |
0.1 |
|
|
|
(28.3 |
) |
|
Proceeds from (price adjustment on prior) sale of subsidiary |
(1.1 |
) |
|
|
1.1 |
|
|
Expenditures for property and equipment |
(10.9 |
) |
|
|
(10.9 |
) |
|
Proceeds from sale of property and equipment |
1.7 |
|
|
|
6.0 |
|
|
Purchase of investments |
(0.8 |
) |
|
|
(0.9 |
) |
|
Sale of investments |
1.8 |
|
|
|
1.2 |
|
|
Net cash used by investing
activities |
(9.2 |
) |
|
|
(31.8 |
) |
|
Cash flows from
financing activities: |
|
|
|
Payment of dividends |
(7.5 |
) |
|
|
(7.5 |
) |
|
Borrowings under bank loans |
2.5 |
|
|
|
0.2 |
|
|
Repayment of bank loans |
(3.6 |
) |
|
|
(0.5 |
) |
|
Sale of Company stock by SERP, net |
0.6 |
|
|
|
0.2 |
|
|
Withholding tax paid upon vesting of share-based compensation
awards |
(3.4 |
) |
|
|
(0.7 |
) |
|
Net cash used by financing
activities |
(11.4 |
) |
|
|
(8.3 |
) |
|
Effect of exchange rates on
cash |
(0.7 |
) |
|
|
(2.4 |
) |
|
Increase in cash and cash
equivalents |
6.0 |
|
|
|
59.6 |
|
|
Cash and cash equivalents,
beginning of period |
158.6 |
|
|
|
48.9 |
|
|
Cash and cash equivalents, end
of period |
$ |
164.6 |
|
|
|
$ |
108.5 |
|
|
Appendix
3Q 2021 GAAP to Non-GAAP Reconciliation Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
Transformation Program |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
267.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
267.0 |
|
GP |
62.3 |
|
|
— |
|
|
— |
|
|
62.3 |
|
GP% |
23.3 |
% |
|
|
|
|
|
23.3 |
% |
Operating income |
6.7 |
|
|
0.3 |
|
|
2.4 |
|
|
9.4 |
|
Income taxes |
(2.8) |
|
|
0.1 |
|
|
0.5 |
|
|
(2.2) |
|
Net income attributable to controlling interest |
9.3 |
|
|
0.2 |
|
|
1.9 |
|
|
11.4 |
|
Diluted EPS |
0.41 |
|
|
0.01 |
|
|
0.08 |
|
|
0.50 |
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
Net sales |
176.3 |
|
|
— |
|
|
— |
|
|
176.3 |
|
GP |
39.9 |
|
|
— |
|
|
— |
|
|
39.9 |
|
GP% |
22.6 |
% |
|
|
|
|
|
22.6 |
% |
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
Net sales |
90.7 |
|
|
— |
|
|
— |
|
|
90.7 |
|
GP |
22.4 |
|
|
— |
|
|
— |
|
|
22.4 |
|
GP% |
24.7 |
% |
|
|
|
|
|
24.7 |
% |
|
|
|
|
|
|
|
|
3Q YTD 2021 GAAP to Non-GAAP Reconciliation
Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment,and Other Charges,
Net |
|
Transformation Program |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
829.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
829.4 |
|
GP |
197.8 |
|
|
— |
|
|
— |
|
|
197.8 |
|
GP% |
23.8 |
% |
|
|
|
|
|
23.8 |
% |
Operating income |
27.7 |
|
|
1.8 |
|
|
7.7 |
|
|
37.2 |
|
Income taxes |
0.4 |
|
|
0.4 |
|
|
1.8 |
|
|
2.6 |
|
Net income attributable to controlling interest |
27.0 |
|
|
1.4 |
|
|
5.9 |
|
|
34.3 |
|
Diluted EPS |
1.18 |
|
|
0.06 |
|
|
0.26 |
|
|
1.50 |
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
Net sales |
558.0 |
|
|
— |
|
|
— |
|
|
558.0 |
|
GP |
128.0 |
|
|
— |
|
|
— |
|
|
128.0 |
|
GP% |
22.9 |
% |
|
|
|
|
|
22.9 |
% |
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
Net sales |
271.4 |
|
|
— |
|
|
— |
|
|
271.4 |
|
GP |
69.8 |
|
|
— |
|
|
— |
|
|
69.8 |
|
GP% |
25.7 |
% |
|
|
|
|
|
25.7 |
% |
3Q 2020 GAAP to Non-GAAP Reconciliation Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
Net sales |
$ |
231.4 |
|
|
$ |
— |
|
|
$ |
231.4 |
|
GP |
50.2 |
|
|
2.5 |
|
|
52.7 |
|
GP% |
21.7 |
% |
|
|
|
22.8 |
% |
Operating income |
-0.9 |
|
|
4.7 |
|
|
3.8 |
|
Other (expenses) income,
net |
1.3 |
|
|
-1.1 |
|
|
0.2 |
|
Income taxes |
-1.2 |
|
|
0.8 |
|
|
-0.4 |
|
Net income attributable to
controlling interest |
1.6 |
|
|
2.8 |
|
|
4.4 |
|
Diluted EPS |
0.07 |
|
|
0.12 |
|
|
0.19 |
|
|
|
|
|
|
|
Infrastructure
Solutions |
|
|
|
|
|
Net sales |
151.1 |
|
|
— |
|
|
151.1 |
|
GP |
29.5 |
|
|
2.5 |
|
|
32.0 |
|
GP% |
19.5 |
% |
|
|
|
21.2 |
% |
|
|
|
|
|
|
Materials
Solutions |
|
|
|
|
|
Net sales |
80.3 |
|
|
— |
|
|
80.3 |
|
GP |
20.6 |
|
|
— |
|
|
20.6 |
|
GP% |
25.7 |
% |
|
|
|
25.7 |
% |
|
|
|
|
|
|
3Q YTD 2020 GAAP to Non-GAAP Reconciliation
Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
Net sales |
$ |
785.5 |
|
|
$ |
— |
|
|
$ |
785.5 |
|
GP |
183.2 |
|
|
4.4 |
|
|
187.6 |
|
GP% |
23.3 |
% |
|
|
|
23.9 |
% |
Operating income |
25.1 |
|
|
14.7 |
|
|
39.8 |
|
Other (expenses) income,
net |
2.0 |
|
|
-1.1 |
|
|
0.9 |
|
Income taxes |
-4.5 |
|
|
3.4 |
|
|
-1.1 |
|
Net income attributable to
controlling interest |
31.5 |
|
|
10.2 |
|
|
41.7 |
|
Diluted EPS |
1.38 |
|
|
0.45 |
|
|
1.83 |
|
|
|
|
|
|
|
Infrastructure
Solutions |
|
|
|
|
|
Net sales |
535.6 |
|
|
— |
|
|
535.6 |
|
GP |
120.1 |
|
|
4.4 |
|
|
124.5 |
|
GP% |
22.4 |
% |
|
|
|
23.2 |
% |
|
|
|
|
|
|
Materials
Solutions |
|
|
|
|
|
Net sales |
249.9 |
|
|
— |
|
|
249.9 |
|
GP |
62.8 |
|
|
— |
|
|
62.8 |
|
GP% |
25.1 |
% |
|
|
|
25.1 |
% |
Astec Industries
Inc.GAAP vs Non-GAAP Adjusted EPS
Reconciliations(In millions, except per share
amounts; unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income attributable to controlling interest |
|
$ |
9.3 |
|
|
|
$ |
1.6 |
|
|
|
$ |
27.0 |
|
|
|
$ |
31.5 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
2.4 |
|
|
|
— |
|
|
|
7.7 |
|
|
|
— |
|
|
Facility closures and reduction in force |
|
0.5 |
|
|
|
5.6 |
|
|
|
2.1 |
|
|
|
11.8 |
|
|
Asset impairment (recovery) |
|
— |
|
|
|
(0.3 |
) |
|
|
0.2 |
|
|
|
4.1 |
|
|
Gain on sale of property, equipment and business, net |
|
(0.2 |
) |
|
|
(1.7 |
) |
|
|
(0.5 |
) |
|
|
(2.3 |
) |
|
Income taxes |
|
(0.6 |
) |
|
|
(0.8 |
) |
|
|
(2.2 |
) |
|
|
(3.4 |
) |
|
Adjusted net income
attributable to controlling interest |
|
$ |
11.4 |
|
|
|
$ |
4.4 |
|
|
|
$ |
34.3 |
|
|
|
$ |
41.7 |
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS |
|
$ |
0.41 |
|
|
|
$ |
0.07 |
|
|
|
$ |
1.18 |
|
|
|
$ |
1.38 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
0.10 |
|
|
|
— |
|
|
|
0.34 |
|
|
|
— |
|
|
Facility closures and reduction in force (a) |
|
0.03 |
|
|
|
0.23 |
|
|
|
0.09 |
|
|
|
0.52 |
|
|
Asset impairment (recovery) |
|
— |
|
|
|
(0.01 |
) |
|
|
0.01 |
|
|
|
0.18 |
|
|
Gain on sale of property, equipment and business, net |
|
(0.01 |
) |
|
|
(0.07 |
) |
|
|
(0.02 |
) |
|
|
(0.10 |
) |
|
Income taxes |
|
(0.03 |
) |
|
|
(0.03 |
) |
|
|
(0.10 |
) |
|
|
(0.15 |
) |
|
Adjusted EPS |
|
$ |
0.50 |
|
|
|
$ |
0.19 |
|
|
|
$ |
1.50 |
|
|
|
$ |
1.83 |
|
|
|
|
|
|
|
|
|
|
|
(a) Facility closures and reduction in force above include the
impact of a rounding adjustment |
Astec Industries
Inc.EBITDA and Adjusted EBITDA
Reconciliations(In millions;
unaudited)
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net sales |
|
$ |
267.0 |
|
|
|
$ |
231.4 |
|
|
|
$ |
829.4 |
|
|
|
$ |
785.5 |
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
controlling interest |
|
$ |
9.3 |
|
|
|
$ |
1.6 |
|
|
|
$ |
27.0 |
|
|
|
$ |
31.5 |
|
|
Interest expense (income),
net |
|
0.1 |
|
|
|
(0.2 |
) |
|
|
0.2 |
|
|
|
(0.4 |
) |
|
Depreciation and
amortization |
|
7.5 |
|
|
|
6.8 |
|
|
|
22.6 |
|
|
|
19.4 |
|
|
(Benefit) provision from
income taxes |
|
(2.8 |
) |
|
|
(1.2 |
) |
|
|
0.4 |
|
|
|
(4.5 |
) |
|
EBITDA |
|
14.1 |
|
|
|
7.0 |
|
|
|
50.2 |
|
|
|
46.0 |
|
|
EBITDA margin |
|
5.3 |
|
% |
|
3.0 |
|
% |
|
6.1 |
|
% |
|
5.9 |
|
% |
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
2.4 |
|
|
|
— |
|
|
|
7.7 |
|
|
|
— |
|
|
Facility closures and reduction in force |
|
0.5 |
|
|
|
5.6 |
|
|
|
2.1 |
|
|
|
11.8 |
|
|
Asset impairment (recovery) |
|
— |
|
|
|
(0.3 |
) |
|
|
0.2 |
|
|
|
4.1 |
|
|
Gain on sale of property, equipment and business, net |
|
(0.2 |
) |
|
|
(1.7 |
) |
|
|
(0.5 |
) |
|
|
(2.3 |
) |
|
Adjusted EBITDA |
|
$ |
16.8 |
|
|
|
$ |
10.6 |
|
|
|
$ |
59.7 |
|
|
|
$ |
59.6 |
|
|
Adjusted EBITDA margin |
|
6.3 |
|
% |
|
4.6 |
|
% |
|
7.2 |
|
% |
|
7.6 |
|
% |
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