Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the fourth quarter of 2021.
Fourth quarter of 2021 net sales of $267.8
million increased 12.1% compared to $238.9 million for the fourth
quarter of 2020. Domestic sales increased $32.9 million or 18.2%
due mainly to stronger asphalt plant and concrete plant sales as
well as pricing initiatives and increases in aftermarket parts.
International sales decreased $4.0 million or 6.8% primarily due to
lower equipment sales partially offset by increased aftermarket
parts sales.
Backlog as of December 31, 2021 of $762.6
million increased by $402.1 million, or 111.5% compared to the
backlog of $360.5 million on December 31, 2020. Domestic backlog
increased by 123.4% to $627.0 million while international backlog
increased by 69.7% to $135.6 million.
Operating loss of $5.6 million in the fourth
quarter of 2021 decreased 131.3% compared to an operating income of
$17.9 million in the fourth quarter of 2020. Operating margin of
(2.1)% decreased 960 basis points from 7.5% in the fourth quarter
2020. Fourth quarter of 2021 adjusted operating income of $0.8
million, decreased 94.9% compared to $15.7 million for the fourth
quarter of 2020. Adjusted operating margin of 0.3% decreased 630
basis points from 6.6% in fourth quarter 2020. The variance was
largely driven by manufacturing challenges due to supply chain and
logistics disruptions as well as pandemic related labor
restrictions combined with net inflation, increased SG&A costs
for centralization and infrastructure efforts associated with our
ongoing transformation initiatives and a legal contingency.
The effective income tax rate for the quarter
was 16.5% compared to 17.6% in the prior year primarily due to the
income tax benefit derived from lower operating profit in the
current quarter over last year. The adjusted tax rate for the
quarter was 350.0% compared to 17.3% in the fourth quarter of 2020.
The higher adjusted tax rate for the quarter was caused by the
adverse jurisdictional tax effect of the transformation program
costs and the termination of a subsidiary pension plan relative to
negative pre-tax earnings.
Net loss of $9.2 million decreased from net
income of $15.4 million in the fourth quarter of 2020, while
diluted EPS of $(0.40) decreased from $0.67 in the fourth quarter
of 2020. Adjusted net loss of $0.6 million decreased 104.7%
compared to the prior year period, while Adjusted EPS of $(0.03)
decreased 105.4% compared to $0.56 for the fourth quarter of 2020.
Adjusted EPS excludes $0.37 of incremental costs, net of tax,
primarily driven by our transformation program and the termination
of a subsidiary pension plan.
Negative EBITDA of $3.0 million decreased $29.5
million, or 111.3%, compared to the prior year EBITDA of $26.5
million. Adjusted EBITDA of $8.1 million decreased 65.2% compared
to $23.3 million a year ago. Adjusted EBITDA margin decreased 680
basis points from 9.8% in the fourth quarter of 2020 largely driven
by manufacturing challenges due to supply chain and logistics
disruptions as well as pandemic related labor restrictions combined
with net inflation and increased SG&A expenses.
Full Year 2021 Results
Net sales for 2021 were $1,097.2 million or up
7.1% when compared to 2020. Domestic sales increased $25.1 million
or 3.1% and international sales increased $47.7 million or
23.0%.
Operating income of $22.1 million decreased
48.6% compared to $43.0 million in 2020. Adjusted operating income
of $38.0 million, decreased 31.5% compared to $55.5 million in
2020. Adjusted operating margin of 3.5% decreased 190 basis points
from 5.4% in 2020 largely as a result of inflation outpacing
increased volume, pricing and mix due to longer contract cycles for
certain of our products combined with higher SG&A expenses
caused by an increase in personnel and costs associated with
centralization and infrastructure.
Net income was $17.8 million, or $0.78 per
diluted share, compared to $46.9 million, or $2.05 per diluted
share in 2020. Adjusted net income of $33.7 million decreased 38.2%
compared to 2020. Adjusted EPS of $1.47 decreased 38.2% compared to
$2.38 last year. The following adjustments, net of tax, which are
related to our efforts to simplify the organization, resulted in a
$0.69 per share impact to Adjusted EPS in 2021:
- Transformation program expenses of
$13.4 million pre-tax, or $0.58 per share, were incurred during
2021. See additional discussion below related to the transformation
program.
- During the fourth quarter 2021, the
Company settled its obligations under its defined benefit pension
plan and other postretirement benefit plan ("OPEB") and recorded
total net charges of $4.7 million, including excise tax, or $0.20
per share.
- The Company incurred restructuring
charges primarily related to the closure of the Tacoma facility of
$2.9 million on a pre-tax basis, or $0.13 per share.
- In addition, the Company recorded a
net $0.4 million gain on the sale of property and equipment
partially offset by asset impairments.
Adjusted EBITDA of $67.8 million decreased 18.2%
compared to $82.9 million in 2020. Adjusted EBITDA margin of 6.2%
decreased 190 basis points from 8.1% in 2020.
"In the midst of a challenging 2021 business
environment the evolution of our OneASTEC business model and
strategy to Simplify, Focus and Grow continued to move forward as
we laid the foundation for future growth. Astec customers and
employees remained diligent in the face of lingering supply chain,
logistic, labor and net inflation headwinds along with a fourth
quarter resurgence of COVID-19 in the form of the Omicron variant.
As we indicated in our preliminary results on February 7, 2022,
these factors negatively impacted the fourth quarter gross profit
margin compared to the same period in 2020 and we expect them to
continue to persist in early 2022. Despite these challenges, there
were many positives in 2021 including the launch of the Astec
rebranding initiative which simplified how to do business with our
Company, the attraction of additional workforce talent that will
support capacity growth in 2022 and a focused effort to address
supply chain volatility in the market. Strong demand for our
products continued as we achieved a record backlog of $762.6
million as of December 31, 2021. Another positive in 2021 was the
passage of the Infrastructure Investment & Jobs Act which
provides a long-term tailwind for our business. This program
includes $548 billion for new infrastructure over the five-year
period concluding in 2026. And lastly, we were pleased to report
progress on our ESG initiatives as evidenced by our newly-formed
partnership with CarbonCure which provides specialized equipment
used to sequester carbon dioxide in the concrete production
process," said Barry Ruffalo, Chief Executive Officer of Astec.
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, improving
productivity and embedding 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.
Since initiating SFG, we have consolidated
certain of our sites as a key part of these initiatives. Site
consolidation costs including headcount reductions, inventory
movement and facility shut-down 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 fourth quarter and year ended
December 31, 2021, were $5.7 million and $13.4 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.
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 fourth
quarter of 2021 although not at optimal manufacturing efficiency
with the changing landscape of COVID-19 variants impacting our
labor force and we expect to be fully operational in 2022.
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. Given the recent volatility of steel prices and
the nature of our customer's orders, there are times when we are
unable to pass through all of the increases in steel costs to our
customers. Continued increases are expected to occur into 2022 on
anticipated strong demand before normalized price inflation returns
on increased market capacity. 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") expired on December 3, 2021. In November 2021, the
U.S. government enacted the Infrastructure Investment and Jobs Act
("IIJA"), which allocates $548 billion in government spending to
new infrastructure over a five-year period, with certain amounts
specifically allocated to fund highway and bridge projects. We
believe that multi-year highway programs (such as the IIJA) will
have the greatest 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, February 28, 2022, at 8:30 A.M. Eastern Time, to
review its fourth quarter 2021 results as well as current business
conditions. To access the call, dial 888-440-4118 on Monday,
February 28, 2022 at least 10 minutes prior to the scheduled time
for the call. International callers should dial 646-960-0833. You
may also access a live webcast at
https://event.on24.com/wcc/r/3609290/26C6F83633A5881C25B902E3BD5531C6.
You will need to give your name and company
affiliation and reference Astec. An archived webcast will be
available for ninety days at www.astecindustries.com.
A replay of the call can be accessed through
March 14, 2022 by dialing 800-770-2030, or 647-362-9199 for
international callers, Conference ID# 8741406. 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.
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 U.S. 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 December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net sales |
$ |
267.8 |
|
|
$ |
238.9 |
|
|
$ |
1,097.2 |
|
|
$ |
1,024.4 |
|
Cost of sales |
|
213.9 |
|
|
|
182.0 |
|
|
|
845.5 |
|
|
|
784.3 |
|
Gross profit |
|
53.9 |
|
|
|
56.9 |
|
|
|
251.7 |
|
|
|
240.1 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general, administrative and engineering |
|
58.8 |
|
|
|
41.2 |
|
|
|
227.1 |
|
|
|
189.0 |
|
Restructuring, impairment and other asset charges, net |
|
0.7 |
|
|
|
(2.2 |
) |
|
|
2.5 |
|
|
|
8.1 |
|
Total operating expenses |
|
59.5 |
|
|
|
39.0 |
|
|
|
229.6 |
|
|
|
197.1 |
|
Operating (loss) income |
|
(5.6 |
) |
|
|
17.9 |
|
|
|
22.1 |
|
|
|
43.0 |
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Interest expense |
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
(1.1 |
) |
|
|
(0.7 |
) |
Other (expenses), net of income |
|
(4.8 |
) |
|
|
1.4 |
|
|
|
(4.5 |
) |
|
|
3.4 |
|
(Loss) income from operations before income taxes |
|
(10.9 |
) |
|
|
18.8 |
|
|
|
16.5 |
|
|
|
45.7 |
|
Income tax (benefit)
provision |
|
(1.8 |
) |
|
|
3.3 |
|
|
|
(1.4 |
) |
|
|
(1.2 |
) |
Net (loss) income |
|
(9.1 |
) |
|
|
15.5 |
|
|
|
17.9 |
|
|
|
46.9 |
|
Net income attributable to
noncontrolling interest |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
— |
|
Net (loss) income attributable to controlling interest |
$ |
(9.2 |
) |
|
$ |
15.4 |
|
|
$ |
17.8 |
|
|
$ |
46.9 |
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
$ |
(0.40 |
) |
|
$ |
0.68 |
|
|
$ |
0.78 |
|
|
$ |
2.08 |
|
Diluted |
|
(0.40 |
) |
|
|
0.67 |
|
|
|
0.78 |
|
|
|
2.05 |
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding |
|
|
|
|
|
|
|
Basic |
|
22,768 |
|
|
|
22,603 |
|
|
|
22,727 |
|
|
|
22,586 |
|
Diluted |
|
22,768 |
|
|
|
22,951 |
|
|
|
22,949 |
|
|
|
22,878 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.40 |
) |
|
$ |
0.67 |
|
|
$ |
0.78 |
|
|
$ |
2.05 |
|
Transformation program |
|
0.25 |
|
|
|
— |
|
|
|
0.58 |
|
|
|
— |
|
Curtailment and settlement
loss on pension and postretirement benefits, net (a) |
|
0.20 |
|
|
|
— |
|
|
|
0.20 |
|
|
|
— |
|
Facility closures, reduction
in force and inventory adjustments (a) |
|
0.03 |
|
|
|
0.09 |
|
|
|
0.13 |
|
|
|
0.60 |
|
Asset impairment |
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.19 |
|
Gain on sale of property,
equipment and business, net |
|
— |
|
|
|
(0.24 |
) |
|
|
(0.03 |
) |
|
|
(0.34 |
) |
Income taxes |
|
(0.11 |
) |
|
|
0.03 |
|
|
|
(0.20 |
) |
|
|
(0.12 |
) |
Adjusted EPS |
$ |
(0.03 |
) |
|
$ |
0.56 |
|
|
$ |
1.47 |
|
|
$ |
2.38 |
|
|
|
|
|
|
|
|
|
(a) Calculation includes the impact of a rounding adjustment |
Astec Industries
Inc.Segment Net Sales and
Profits(In millions; unaudited)
Segment net sales are reported net of
intersegment sales. Segment gross profit is net of profit on
intersegment sales.
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
InfrastructureSolutions |
|
MaterialsSolutions |
|
Corporate |
|
Total |
|
InfrastructureSolutions |
|
MaterialsSolutions |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Net sales |
|
$ |
190.0 |
|
|
$ |
77.8 |
|
|
$ |
— |
|
|
$ |
267.8 |
|
|
$ |
748.0 |
|
|
$ |
349.2 |
|
|
$ |
— |
|
|
$ |
1,097.2 |
|
2020 Net sales |
|
|
167.2 |
|
|
|
71.7 |
|
|
|
— |
|
|
|
238.9 |
|
|
|
702.8 |
|
|
|
321.6 |
|
|
|
— |
|
|
|
1,024.4 |
|
Change $ |
|
|
22.8 |
|
|
|
6.1 |
|
|
|
— |
|
|
|
28.9 |
|
|
|
45.2 |
|
|
|
27.6 |
|
|
|
— |
|
|
|
72.8 |
|
Change % |
|
|
13.6 |
% |
|
|
8.5 |
% |
|
|
— |
% |
|
|
12.1 |
% |
|
|
6.4 |
% |
|
|
8.6 |
% |
|
|
— |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Gross profit |
|
|
36.1 |
|
|
|
16.4 |
|
|
|
1.4 |
|
|
|
53.9 |
|
|
|
164.1 |
|
|
|
86.2 |
|
|
|
1.4 |
|
|
|
251.7 |
|
2021 Gross profit % |
|
|
19.0 |
% |
|
|
21.1 |
% |
|
|
N/M |
|
|
|
20.1 |
% |
|
|
21.9 |
% |
|
|
24.7 |
% |
|
|
N/M |
|
|
|
22.9 |
% |
2020 Gross profit |
|
|
39.5 |
|
|
|
17.7 |
|
|
|
(0.3 |
) |
|
|
56.9 |
|
|
|
159.6 |
|
|
|
80.5 |
|
|
|
— |
|
|
|
240.1 |
|
2020 Gross profit % |
|
|
23.6 |
% |
|
|
24.7 |
% |
|
|
N/M |
|
|
|
23.8 |
% |
|
|
22.7 |
% |
|
|
25.0 |
% |
|
|
— |
% |
|
|
23.4 |
% |
Change $ |
|
|
(3.4 |
) |
|
|
(1.3 |
) |
|
|
1.7 |
|
|
|
(3.0 |
) |
|
|
4.5 |
|
|
|
5.7 |
|
|
|
1.4 |
|
|
|
11.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 Profit / (loss) |
|
|
6.4 |
|
|
|
2.0 |
|
|
|
(17.3 |
) |
|
|
(8.9 |
) |
|
|
53.0 |
|
|
|
29.3 |
|
|
|
(64.8 |
) |
|
|
17.5 |
|
2020 Profit / (loss) |
|
|
16.1 |
|
|
|
10.4 |
|
|
|
(11.9 |
) |
|
|
14.6 |
|
|
|
53.8 |
|
|
|
32.1 |
|
|
|
(40.1 |
) |
|
|
45.8 |
|
Change $ |
|
|
(9.7 |
) |
|
|
(8.4 |
) |
|
|
(5.4 |
) |
|
|
(23.5 |
) |
|
|
(0.8 |
) |
|
|
(2.8 |
) |
|
|
(24.7 |
) |
|
|
(28.3 |
) |
Change % |
|
|
(60.2 |
)% |
|
|
(80.8 |
)% |
|
|
(45.4 |
)% |
|
|
(161.0 |
)% |
|
|
(1.5 |
)% |
|
|
(8.7 |
)% |
|
|
(61.6 |
)% |
|
|
(61.8 |
)% |
N/M = Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
Change $ |
|
|
2021 |
|
|
|
2020 |
|
|
Change $ |
Total (loss) profit for all segments |
$ |
(8.9 |
) |
|
$ |
14.6 |
|
|
$ |
(23.5 |
) |
|
$ |
17.5 |
|
|
$ |
45.8 |
|
|
$ |
(28.3 |
) |
(Elimination) recapture of
intersegment profit |
|
(0.2 |
) |
|
|
0.9 |
|
|
|
(1.1 |
) |
|
|
0.4 |
|
|
|
1.1 |
|
|
|
(0.7 |
) |
Net income attributable to
noncontrolling interest |
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Net (loss) income attributable
to controlling interest |
$ |
(9.2 |
) |
|
$ |
15.4 |
|
|
$ |
(24.6 |
) |
|
$ |
17.8 |
|
|
$ |
46.9 |
|
|
$ |
(29.1 |
) |
Astec Industries
Inc.Condensed Consolidated Balance
Sheets(In millions; unaudited)
|
December 31 |
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and restricted cash |
$ |
134.4 |
|
|
$ |
158.6 |
|
Investments |
|
8.6 |
|
|
|
4.3 |
|
Trade receivables and contract assets, net |
|
144.1 |
|
|
|
115.9 |
|
Inventories, net |
|
303.0 |
|
|
|
249.7 |
|
Other current assets, net |
|
51.6 |
|
|
|
37.3 |
|
Total current assets |
|
641.7 |
|
|
|
565.8 |
|
Property, plant and equipment,
net |
|
171.7 |
|
|
|
172.8 |
|
Other long-term assets |
|
97.9 |
|
|
|
109.6 |
|
Total assets |
$ |
911.3 |
|
|
$ |
848.2 |
|
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
83.5 |
|
|
$ |
52.7 |
|
Customer deposits |
|
60.2 |
|
|
|
34.2 |
|
Other current liabilities |
|
81.6 |
|
|
|
83.4 |
|
Total current liabilities |
|
225.3 |
|
|
|
170.3 |
|
Long-term debt |
|
0.2 |
|
|
|
0.4 |
|
Other long-term
liabilities |
|
31.0 |
|
|
|
34.5 |
|
Total equity |
|
654.8 |
|
|
|
643.0 |
|
Total liabilities and
equity |
$ |
911.3 |
|
|
$ |
848.2 |
|
Astec Industries Inc.
Condensed Consolidated Statements of Cash Flows
(In millions; unaudited)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
Cash flows from
operating activities: |
|
|
|
Net income |
$ |
17.9 |
|
|
$ |
46.9 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Depreciation |
|
20.1 |
|
|
|
20.8 |
|
Amortization |
|
10.1 |
|
|
|
6.1 |
|
Provision for credit losses |
|
1.4 |
|
|
|
0.9 |
|
Provision for warranties |
|
10.9 |
|
|
|
9.8 |
|
Deferred compensation expense |
|
0.5 |
|
|
|
0.7 |
|
Share-based compensation |
|
6.0 |
|
|
|
5.1 |
|
Deferred tax (benefit) provision |
|
(1.3 |
) |
|
|
8.6 |
|
Gain on disposition of property and equipment |
|
(0.6 |
) |
|
|
(6.2 |
) |
Non-cash curtailment and settlement loss (gain) on pension and
postretirement benefits, net |
|
3.2 |
|
|
|
(0.5 |
) |
Gain on disposition of subsidiary |
|
— |
|
|
|
(1.6 |
) |
Asset impairment charges, net |
|
0.2 |
|
|
|
4.4 |
|
Distributions to deferred compensation programs participants |
|
(2.5 |
) |
|
|
(1.4 |
) |
Change in operating assets and liabilities, excluding the effects
of acquisitions: |
|
|
|
(Purchase) sale of trading securities, net |
|
(3.1 |
) |
|
|
0.2 |
|
Receivables and other contract assets |
|
(30.8 |
) |
|
|
12.2 |
|
Inventories |
|
(53.8 |
) |
|
|
44.7 |
|
Prepaid expenses |
|
(6.2 |
) |
|
|
— |
|
Other assets |
|
1.5 |
|
|
|
(0.2 |
) |
Accounts payable |
|
30.8 |
|
|
|
(8.6 |
) |
Accrued retirement benefit costs |
|
(0.1 |
) |
|
|
— |
|
Accrued loss reserves |
|
(1.3 |
) |
|
|
0.3 |
|
Accrued payroll and related expenses |
|
3.0 |
|
|
|
(5.1 |
) |
Other accrued liabilities |
|
(0.7 |
) |
|
|
9.8 |
|
Accrued product warranty |
|
(10.7 |
) |
|
|
(10.2 |
) |
Customer deposits |
|
26.5 |
|
|
|
(11.2 |
) |
Income taxes payable/prepaid |
|
(13.6 |
) |
|
|
16.0 |
|
Net cash provided by operating
activities |
|
7.4 |
|
|
|
141.5 |
|
Cash flows from
investing activities: |
|
|
|
Acquisitions, net of cash acquired |
|
0.1 |
|
|
|
(32.5 |
) |
(Price adjustment on prior) proceeds from sale of subsidiary |
|
(1.1 |
) |
|
|
9.1 |
|
Expenditures for property and equipment |
|
(20.1 |
) |
|
|
(15.4 |
) |
Proceeds from sale of property and equipment |
|
1.9 |
|
|
|
17.7 |
|
Purchase of investments |
|
(1.0 |
) |
|
|
(1.1 |
) |
Sale of investments |
|
1.8 |
|
|
|
1.3 |
|
Net cash used in investing
activities |
$ |
(18.4 |
) |
|
$ |
(20.9 |
) |
(Continued)
Astec Industries Inc.
Condensed Consolidated Statements of Cash Flows
(Continued)(In millions; unaudited)
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
Cash flows from
financing activities: |
|
|
|
Payment of dividends |
$ |
(10.2 |
) |
|
$ |
(10.0 |
) |
Borrowings under bank loans |
|
7.2 |
|
|
|
6.0 |
|
Repayment of bank loans |
|
(6.2 |
) |
|
|
(5.9 |
) |
Sale of Company stock by deferred compensation programs, net |
|
0.6 |
|
|
|
0.3 |
|
Withholding tax paid upon vesting of share-based compensation
awards |
|
(3.5 |
) |
|
|
(0.8 |
) |
Net cash used in financing
activities |
|
(12.1 |
) |
|
|
(10.4 |
) |
Effect of exchange rates on
cash |
|
(1.1 |
) |
|
|
(0.5 |
) |
(Decrease) increase in cash
and cash equivalents and restricted cash |
|
(24.2 |
) |
|
|
109.7 |
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
158.6 |
|
|
|
48.9 |
|
Cash and cash equivalents and
restricted cash, end of period |
$ |
134.4 |
|
|
$ |
158.6 |
|
Appendix
The following tables present selected line items
from the Consolidated Statements of Operations and segment
information for the respective periods identified.
4Q 2021 GAAP to Non-GAAP Reconciliation Table |
|
As Reported(GAAP) |
|
Restructuring,Impairment,and OtherCharges,
Net |
|
TransformationProgram |
|
Pension andOPEB Loss,Net |
|
As Adjusted(Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
267.8 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
267.8 |
|
Gross profit |
|
53.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
53.9 |
|
Gross profit % |
|
20.1 |
% |
|
|
|
|
|
|
|
|
20.1 |
% |
Selling, general and administrative expenses |
|
52.3 |
|
|
|
— |
|
|
|
(5.7 |
) |
|
|
— |
|
|
|
46.6 |
|
Operating (loss) income |
|
(5.6 |
) |
|
|
0.7 |
|
|
|
5.7 |
|
|
|
— |
|
|
|
0.8 |
|
Other (expenses), net of income |
|
(4.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
4.7 |
|
|
|
(0.1 |
) |
Income taxes |
|
(1.8 |
) |
|
|
0.1 |
|
|
|
1.3 |
|
|
|
1.1 |
|
|
|
0.7 |
|
Net (loss) attributable to controlling interest |
|
(9.2 |
) |
|
|
0.6 |
|
|
|
4.4 |
|
|
|
3.6 |
|
|
|
(0.6 |
) |
Diluted EPS |
|
(0.40 |
) |
|
|
0.03 |
|
|
|
0.19 |
|
|
|
0.15 |
|
|
|
(0.03 |
) |
|
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
190.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
190.0 |
|
Gross profit |
|
36.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
36.1 |
|
Gross profit % |
|
19.0 |
% |
|
|
|
|
|
|
|
|
19.0 |
% |
|
|
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
77.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
77.8 |
|
Gross profit |
|
16.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
16.4 |
|
Gross profit % |
|
21.1 |
% |
|
|
|
|
|
|
|
|
21.1 |
% |
|
|
|
|
|
|
|
|
|
|
FY2021 GAAP to Non-GAAP Reconciliation Table |
|
As Reported(GAAP) |
|
Restructuring,Impairment,and OtherCharges,
Net |
|
TransformationProgram |
|
Pension andOPEB Loss,Net |
|
As Adjusted(Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
1,097.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,097.2 |
|
Gross profit |
|
251.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
251.7 |
|
Gross profit % |
|
22.9 |
% |
|
|
|
|
|
|
|
|
22.9 |
% |
Selling, general and administrative expenses |
|
200.6 |
|
|
|
— |
|
|
|
(13.4 |
) |
|
|
— |
|
|
|
187.2 |
|
Operating income |
|
22.1 |
|
|
|
2.5 |
|
|
|
13.4 |
|
|
|
— |
|
|
|
38.0 |
|
Other (expenses), net of income |
|
(4.5 |
) |
|
|
— |
|
|
|
— |
|
|
|
4.7 |
|
|
|
0.2 |
|
Income taxes |
|
(1.4 |
) |
|
|
0.5 |
|
|
|
3.1 |
|
|
|
1.1 |
|
|
|
3.3 |
|
Net income attributable to controlling interest |
|
17.8 |
|
|
|
2.0 |
|
|
|
10.3 |
|
|
|
3.6 |
|
|
|
33.7 |
|
Diluted EPS |
|
0.78 |
|
|
|
0.09 |
|
|
|
0.45 |
|
|
|
0.15 |
|
|
|
1.47 |
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
748.0 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
748.0 |
|
Gross profit |
|
164.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
164.1 |
|
Gross profit % |
|
21.9 |
% |
|
|
|
|
|
|
|
|
21.9 |
% |
|
|
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
349.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
349.2 |
|
Gross profit |
|
86.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
86.2 |
|
Gross profit % |
|
24.7 |
% |
|
|
|
|
|
|
|
|
24.7 |
% |
4Q 2020 GAAP to Non-GAAP Reconciliation Table |
|
As Reported(GAAP) |
|
Restructuring,Impairment,and OtherCharges,
Net |
|
As Adjusted(Non-GAAP) |
Consolidated |
|
|
|
|
|
Net sales |
$ |
238.9 |
|
|
$ |
— |
|
|
$ |
238.9 |
|
Gross profit |
|
56.9 |
|
|
|
— |
|
|
|
56.9 |
|
Gross profit % |
|
23.8 |
% |
|
|
|
|
23.8 |
% |
Selling, general and administrative expenses |
|
36.7 |
|
|
|
— |
|
|
|
36.7 |
|
Operating income |
|
17.9 |
|
|
|
(2.2 |
) |
|
|
15.7 |
|
Other income, net of expenses |
|
1.4 |
|
|
|
(1.0 |
) |
|
|
0.4 |
|
Income taxes |
|
3.3 |
|
|
|
(0.6 |
) |
|
|
2.7 |
|
Net income attributable to controlling interest |
|
15.4 |
|
|
|
(2.6 |
) |
|
|
12.8 |
|
Diluted EPS |
|
0.67 |
|
|
|
(0.11 |
) |
|
|
0.56 |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
Net sales |
|
167.2 |
|
|
|
— |
|
|
|
167.2 |
|
Gross profit |
|
39.5 |
|
|
|
— |
|
|
|
39.5 |
|
Gross profit % |
|
23.6 |
% |
|
|
|
|
23.6 |
% |
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
Net sales |
|
71.7 |
|
|
|
— |
|
|
|
71.7 |
|
Gross profit |
|
17.7 |
|
|
|
— |
|
|
|
17.7 |
|
Gross profit % |
|
24.7 |
% |
|
|
|
|
24.7 |
% |
|
|
|
|
|
|
FY2020 GAAP to Non-GAAP Reconciliation Table |
|
As Reported(GAAP) |
|
Restructuring,Impairment,and OtherCharges,
Net |
|
As Adjusted(Non-GAAP) |
Consolidated |
|
|
|
|
|
Net sales |
$ |
1,024.4 |
|
|
$ |
— |
|
|
$ |
1,024.4 |
|
Gross profit |
|
240.1 |
|
|
|
4.4 |
|
|
|
244.5 |
|
Gross profit % |
|
23.4 |
% |
|
|
|
|
23.9 |
% |
Selling, general and administrative expenses |
|
166.9 |
|
|
|
— |
|
|
|
166.9 |
|
Operating income |
|
43.0 |
|
|
|
12.5 |
|
|
|
55.5 |
|
Other income, net of expenses |
|
3.4 |
|
|
|
(2.1 |
) |
|
|
1.3 |
|
Income taxes |
|
(1.2 |
) |
|
|
2.8 |
|
|
|
1.6 |
|
Net income attributable to controlling interest |
|
46.9 |
|
|
|
7.6 |
|
|
|
54.5 |
|
Diluted EPS |
|
2.05 |
|
|
|
0.33 |
|
|
|
2.38 |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
Net sales |
|
702.8 |
|
|
|
— |
|
|
|
702.8 |
|
Gross profit |
|
159.6 |
|
|
|
4.4 |
|
|
|
164.0 |
|
Gross profit % |
|
22.7 |
% |
|
|
|
|
23.3 |
% |
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
Net sales |
|
321.6 |
|
|
|
— |
|
|
|
321.6 |
|
Gross profit |
|
80.5 |
|
|
|
— |
|
|
|
80.5 |
|
Gross profit % |
|
25.0 |
% |
|
|
|
|
25.0 |
% |
Astec Industries
Inc.GAAP vs Non-GAAP Adjusted EPS
Reconciliations(In millions, except per share
amounts; unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net (loss) income attributable
to controlling interest |
$ |
(9.2 |
) |
|
$ |
15.4 |
|
|
$ |
17.8 |
|
|
$ |
46.9 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
5.7 |
|
|
|
— |
|
|
|
13.4 |
|
|
|
— |
|
Curtailment and settlement loss on pension and postretirement
benefits, net |
|
4.7 |
|
|
|
— |
|
|
|
4.7 |
|
|
|
— |
|
Facility closures, reduction in force and inventory
adjustments |
|
0.8 |
|
|
|
2.0 |
|
|
|
2.9 |
|
|
|
13.8 |
|
Asset impairment |
|
— |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
4.4 |
|
Gain on sale of property, equipment and business, net |
|
(0.1 |
) |
|
|
(5.5 |
) |
|
|
(0.6 |
) |
|
|
(7.8 |
) |
Income taxes |
|
(2.5 |
) |
|
|
0.6 |
|
|
|
(4.7 |
) |
|
|
(2.8 |
) |
Adjusted net (loss) income
attributable to controlling interest |
$ |
(0.6 |
) |
|
$ |
12.8 |
|
|
$ |
33.7 |
|
|
$ |
54.5 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.40 |
) |
|
$ |
0.67 |
|
|
$ |
0.78 |
|
|
$ |
2.05 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
0.25 |
|
|
|
— |
|
|
|
0.58 |
|
|
|
— |
|
Curtailment and settlement loss on pension and postretirement
benefits, net (a) |
|
0.20 |
|
|
|
— |
|
|
|
0.20 |
|
|
|
— |
|
Facility closures, reduction in force and inventory adjustments
(a) |
|
0.03 |
|
|
|
0.09 |
|
|
|
0.13 |
|
|
|
0.60 |
|
Asset impairment |
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
|
|
0.19 |
|
Gain on sale of property, equipment and business, net |
|
— |
|
|
|
(0.24 |
) |
|
|
(0.03 |
) |
|
|
(0.34 |
) |
Income taxes |
|
(0.11 |
) |
|
|
0.03 |
|
|
|
(0.20 |
) |
|
|
(0.12 |
) |
Adjusted EPS |
$ |
(0.03 |
) |
|
$ |
0.56 |
|
|
$ |
1.47 |
|
|
$ |
2.38 |
|
|
|
|
|
|
|
|
|
(a) Calculation includes the impact of a rounding adjustment |
Astec Industries
Inc.EBITDA and Adjusted EBITDA
Reconciliations(In millions;
unaudited)
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|
|
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
Net sales |
$ |
267.8 |
|
|
$ |
238.9 |
|
|
$ |
1,097.2 |
|
|
$ |
1,024.4 |
|
|
|
|
|
|
|
|
|
Net (loss) income attributable
to controlling interest |
$ |
(9.2 |
) |
|
$ |
15.4 |
|
|
$ |
17.8 |
|
|
$ |
46.9 |
|
Interest expense (income),
net |
|
0.4 |
|
|
|
0.3 |
|
|
|
0.6 |
|
|
|
(0.1 |
) |
Depreciation and
amortization |
|
7.6 |
|
|
|
7.5 |
|
|
|
30.2 |
|
|
|
26.9 |
|
(Benefit from) provision for
income taxes |
|
(1.8 |
) |
|
|
3.3 |
|
|
|
(1.4 |
) |
|
|
(1.2 |
) |
EBITDA |
|
(3.0 |
) |
|
|
26.5 |
|
|
|
47.2 |
|
|
|
72.5 |
|
EBITDA margin |
|
(1.1 |
)% |
|
|
11.1 |
% |
|
|
4.3 |
% |
|
|
7.1 |
% |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
5.7 |
|
|
|
— |
|
|
|
13.4 |
|
|
|
— |
|
Curtailment and settlement loss on pension and postretirement
benefits, net |
|
4.7 |
|
|
|
— |
|
|
|
4.7 |
|
|
|
— |
|
Facility closures, reduction in force and inventory
adjustments |
|
0.8 |
|
|
|
2.0 |
|
|
|
2.9 |
|
|
|
13.8 |
|
Asset impairment |
|
— |
|
|
|
0.3 |
|
|
|
0.2 |
|
|
|
4.4 |
|
Gain on sale of property, equipment and business, net |
|
(0.1 |
) |
|
|
(5.5 |
) |
|
|
(0.6 |
) |
|
|
(7.8 |
) |
Adjusted EBITDA |
$ |
8.1 |
|
|
$ |
23.3 |
|
|
$ |
67.8 |
|
|
$ |
82.9 |
|
Adjusted EBITDA margin |
|
3.0 |
% |
|
|
9.8 |
% |
|
|
6.2 |
% |
|
|
8.1 |
% |
Astec Industries (NASDAQ:ASTE)
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