Astec Industries Reports Fourth Quarter and 2011 Results

CHATTANOOGA, Tenn., Feb. 21, 2012 /PRNewswire/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its fourth quarter and year ended December 31, 2011.  Net sales for the fourth quarter of 2011 were $263.2 million compared to $190.8 million for the fourth quarter of 2010, a 38% increase.  Earnings for the fourth quarter of 2011 were $8.0 million or $0.35 per diluted share compared to the fourth quarter of 2010 earnings of $6.0 million or $0.26 per diluted share, an increase of $0.09 or 35% per diluted share.  The fourth quarter results included charges of $2.2 million related to the sale of the utility trencher product line in the Underground Group.  Excluding these charges, earnings for the fourth quarter of 2011 were $9.4 million or $0.41 per diluted share.  

For the fourth quarter of 2011, domestic sales were $147.1 million or 56% of net sales compared to $119.6 million or 63% of net sales for the fourth quarter of 2010, a 23% increase.  International sales were $116.0 million in the fourth quarter of 2011 or 44% of net sales, a 63% increase over the fourth quarter of 2010 international sales of $71.2 million, or 37% of net sales.  

Net sales for the year ended December 31, 2011 were $955.7 million compared to $771.3 million for the same period in 2010, an increase of 24%.  Earnings for the year ended December 31, 2011 were $39.9 million or $1.74 per diluted share compared to $32.4 million or $1.42 per diluted share for 2010, an increase of $0.32 or 22% per diluted share.    Results for the year ended December 31, 2011 included charges of $2.2 million related to the sale of the utility trencher product line in the Underground Group and an impairment charge of $2.3 million related to a company aircraft that is held for sale.  Excluding these items, earnings for the year ended December 31, 2011 were $42.7 million, or $1.86 per diluted share.  

Domestic sales for 2011 were $561.4 million or 59% of net sales, an 18% increase over 2010 domestic sales of $476.9 million, or 62% of 2010 net sales.  International sales were $394.3 million or 41% of 2011 net sales, a 34% increase over 2010 international sales of $294.4 million, or 38% of 2010 net sales.  

The Company's domestic backlog at December 31, 2011 was $148.0 million compared to $111.0 million at December 31, 2010, an increase of $37.0 million or 33%.  The international backlog at December 31, 2011 was $131.6 million compared to $122.1 million at the end of 2010, an increase of 8%.    All backlog amounts for 2010 have been restated to reflect 2011 acquisitions.  

Consolidated financial information for the fourth quarter and year ended December 31, 2011, additional information related to segment revenues, profits and backlogs, and a reconciliation of earnings as reported to earnings before special items are attached as addenda to this press release.  

Dr. J. Don Brock, Chairman and Chief Executive Officer, commented, "We are pleased with our performance for the fourth quarter and for the year of 2011.  The numbers alone, unfortunately, do not show the great effort that our employees and managers put into making our company perform and in preparing it for future growth.  During the year, we acquired two companies, started a new joint venture company in Brazil, bought two new facilities, expanded three of our existing facilities, negotiated the sale of the utility product line, and developed a number of new products.

The magnitude of product development far exceeds the expense and effort of any prior year.  We believe that the products that were and are being developed will expand our presence in all segments of the energy, mining, and infrastructure markets."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on February 21, 2012, at 10:00 a.m. EST to review its fourth quarter and fiscal 2011 financial results as well as its near term general outlook for 2012.  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 at:  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, 2012, by dialing (877) 660-6853 or (201) 612-7415 for international callers; Account #: 286; Conference ID #: 388830. A transcription 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.

Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure.  Astec's manufacturing operations are divided into four primary business segments:  aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.  Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.

The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company's financial performance for 2012, the effects on the Company from its backlog, the effects of our recent acquisitions, dispositions, and joint ventures, and the success of our product development activities.  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, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, the success of new business models and products, general business conditions in the industry, demand for the Company's products both domestic and international, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, competitive activity 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, 2010 and the Company's quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2011.  The Company plans to file its Form 10-K timely by February 29, 2012.

Astec Industries, Inc.

Consolidated Balance Sheets

(in thousands)

(unaudited)



Dec 31

Dec 31


2011

2010

Assets



Current assets



Cash and cash equivalents

$                  57,505

$                94,597

Receivables, net

102,060

80,863

Inventories

299,065

252,981

Prepaid expenses and other

26,924

19,380

Total current assets

485,554

447,821

Property and equipment, net

188,018

168,242

Other assets

43,311

33,576

Total assets

$                716,883

$              649,639

Liabilities and equity



Current liabilities



Accounts payable - trade

$                  55,170

$                44,493

Other accrued liabilities

98,852

85,933

Total current liabilities

154,022

130,426

Other non-current liabilities

33,678

26,407

Total equity

529,183

492,806

Total liabilities and equity

$                716,883

$              649,639



Astec Industries, Inc.

Consolidated Statements of Income

(in thousands, except shares and share data)

(unaudited)





Three Months Ended

Twelve Months Ended


Dec 31

Dec 31


2011

2010

2011

2010

Net sales

$                263,160

$              190,779

$                955,729

$                771,335

Cost of sales

207,440

146,491

736,935

592,288

Gross profit

55,720

44,288

218,794

179,047

Selling, general, administrative & engineering expenses

43,458

36,272

161,267

131,623

Income from operations

12,262

8,016

57,527

47,424

Interest expense

54

62

193

352

Other income, net of expenses

931

528

1,967

1,631

Income before income taxes

13,139

8,482

59,301

48,703

Income taxes

5,147

2,467

19,281

16,131

Net income

7,992

6,015

40,020

32,572

Net income attributable to noncontrolling interest

28

48

102

142

Net income attributable to controlling interest

$                    7,964

$                  5,967

$                  39,918

$                  32,430











Earnings per Common Share





Net income attributable to controlling interest





         Basic

$                      0.35

$                    0.26

$                      1.77

$                      1.44

         Diluted

$                      0.35

$                    0.26

$                      1.74

$                      1.42











Weighted average common shares outstanding





         Basic

22,613,285

22,553,426

22,588,721

22,517,246

         Diluted

23,018,309

22,874,394

22,984,221

22,829,799



Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended December 31, 2011 and 2010

(in thousands)

(unaudited)


Asphalt Group

Aggregate and
Mining Group

Mobile Asphalt
Paving Group

Underground Group

All Others

Total

2011 Revenues

68,009

84,630

45,424

26,246

38,851

263,160

2010 Revenues

45,518

70,218

40,441

18,322

16,280

190,779

Change $

22,491

14,412

4,983

7,924

22,571

72,381

Change %

49.4%

20.5%

12.3%

43.2%

138.6%

37.9%








2011 Gross Profit

16,665

21,552

10,804

643

6,056

55,720

2011 Gross Profit %

24.5%

25.5%

23.8%

2.4%

15.6%

21.2%

2010 Gross Profit

9,894

17,491

11,442

1,946

3,515

44,288

2010 Gross Profit %

21.7%

24.9%

28.3%

10.6%

21.6%

23.2%

Change

6,771

4,061

(638)

(1,303)

2,541

11,432








2011 Profit (Loss)

8,889

8,379

5,666

(3,940)

(12,091)

6,903

2010 Profit (Loss)

4,262

4,347

6,571

(1,080)

(9,079)

5,021

Change $

4,627

4,032

(905)

(2,860)

(3,012)

1,882

Change %

108.6%

92.8%

(13.8%)

(264.8%)

(33.2%)

37.5%















Segment revenues are reported net of intersegment revenues.  Segment gross profit is net of profit on intersegment



revenues.  A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):














Three months ended December 31


2011

2010

Change $

Total profit for all segments

$                          6,903

$                          5,021

$                          1,882

Net income attributable to non-controlling interest in subsidiary

(28)

(48)

20

Recapture of intersegment profit

1,089

994

95

Net income attributable to controlling interest

$                          7,964

$                          5,967

$                          1,997









Astec Industries, Inc.

Segment Revenues and Profits

For the twelve months ended December 31, 2011 and 2010

(in thousands)

(unaudited)


Asphalt Group

Aggregate and
Mining Group

Mobile Asphalt
Paving Group

Underground Group

All Others

Total

2011 Revenues

260,404

333,278

187,988

84,771

89,288

955,729

2010 Revenues

226,419

256,400

166,436

60,105

61,975

771,335

Change $

33,985

76,878

21,552

24,666

27,313

184,394

Change %

15.0%

30.0%

12.9%

41.0%

44.1%

23.9%








2011 Gross Profit

61,151

83,389

49,962

8,780

15,512

218,794

2011 Gross Profit %

23.5%

25.0%

26.6%

10.4%

17.4%

22.9%

2010 Gross Profit

56,063

60,716

44,580

4,464

13,224

179,047

2010 Gross Profit %

24.8%

23.7%

26.8%

7.4%

21.3%

23.2%

Change

5,088

22,673

5,382

4,316

2,288

39,747








2011 Profit (Loss)

29,310

31,493

26,485

(7,106)

(38,216)

41,966

2010 Profit (Loss)

28,672

16,578

23,234

(8,092)

(27,138)

33,254

Change $

638

14,915

3,251

986

(11,078)

8,712

Change %

2.2%

90.0%

14.0%

12.2%

(40.8%)

26.2%















Segment revenues are reported net of intersegment revenues.  Segment gross profit is net of profit on intersegment



revenues.  A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):














Twelve months ended December 31


2011

2010

Change $

Total profit for all segments

$                        41,966

$                        33,254

$                          8,712

Net income attributable to non-controlling interest in subsidiary

(102)

(142)

40

Elimination of intersegment profit

(1,946)

(682)

(1,264)

Net income attributable to controlling interest

$                        39,918

$                        32,430

$                          7,488









Astec Industries, Inc.

Backlog by Segment

December 31, 2011 and 2010

(in thousands)

(Unaudited)


Asphalt Group

Aggregate and
Mining Group

Mobile Asphalt
Paving Group

Underground Group

All Others

Total

2011 Backlog

115,775

98,262

6,149

32,322

27,090

279,598

2010 Backlog

108,792

81,958

15,109

21,356

5,925

233,140

Change $

6,983

16,304

(8,960)

10,966

21,165

46,458

Change %

6.4%

19.9%

(59.3%)

51.3%

357.2%

19.9%



Astec Industries, Inc. and Subsidiaries

Reconciliation of Net Income Attributable to Controlling Interest as Reported to

Net Income Attributable to Controlling Interest before Special Items

(in thousands, except per share data)

(unaudited)





Three Months Ended

Twelve Months Ended


December 31

December 31


2011

2011

Net income attributable to controlling interest as reported

$                                    7,964

$                                39,918

Special items



         Utility trencher product line charges, net of tax benefit of $871

1,368

1,368

         Company aircraft impairment charge, net of tax benefit of $917

81

1,387

Net income attributable to controlling interest before special items

$                                    9,413

$                                42,673










Net income attributable to controlling interest per diluted share as reported:

$                                      0.35

$                                    1.74

Special items, net of tax, per diluted share:



         Utility trencher product line charges

0.06

0.06

         Company aircraft impairment charge

0.00

0.06

Net income attributable to controlling interest before special items per diluted share:

$                                      0.41

$                                    1.86






The table above reconciles net income attributable to controlling interest and earnings per share as reported according to GAAP with their related non-GAAP measures as discussed in this release.  We believe these non-GAAP measures are helpful to investors in assessing the company's ongoing performance as well as providing comparability with commonly used financial metrics used in the investing community.





SOURCE Astec Industries, Inc.



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