Astec Industries Reports Fourth Quarter And 2012 Results

CHATTANOOGA, Tenn., Feb. 26, 2013 /PRNewswire/ -- Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their fourth quarter and year ended December 31, 2012. 

Net income attributable to controlling interest for the fourth quarter of 2012 was $10.7 million or $0.47 per diluted share compared to $8.0 million or $0.35 per diluted share for the fourth quarter of 2011, an increase of $2.8 million or 34%.

As previously announced, the Company sold its American Augers, Inc. subsidiary during the fourth quarter of 2012.  The Company recognized an after tax gain of $3.4 million, or $0.15 per diluted share, on the sale.  All amounts presented in this release and the attached financial information have been restated to reflect discontinued operations related to the sale of American Augers, Inc. on November 30, 2012.  Earnings from continuing operations for the fourth quarter of 2012 were $5.4 million or $0.23 per diluted share compared to $8.3 million or $0.36 per diluted share for the fourth quarter of 2011, a decrease of 36% or $0.13 per diluted share.

Net sales for the fourth quarter of 2012 were $227.6 million compared to $253.3 million for the fourth quarter of 2011, a 10% decrease.  Domestic sales decreased 10% to $129.0 million for the fourth quarter of 2012 compared to $142.9 million for the fourth quarter of 2011.  International sales were $98.6 million for the fourth quarter of 2012 compared to $110.4 million for the fourth quarter of 2011, a decrease of 11%.

Net income attributable to controlling interest for 2012 was $40.2 million or $1.74 per diluted share compared to $39.9 million or $1.74 per diluted share for 2011.

Earnings from continuing operations for 2012 were $33.4 million or $1.45 per diluted share compared to earnings from continuing operations for 2011 of $39.7 million or $1.73 per diluted share, a decrease of 16% or $0.28 per diluted share.

Net sales for 2012 were $936.3 million compared to $908.6 million for 2011, a 3% increase.  Domestic sales increased 5% to $572.5 million for 2012 compared to $543.5 million for 2011.  International sales were $363.8 million for 2012, only slightly changed from $365.1 million for 2011.

The Company's domestic backlog increased 8%, from $145.0 million at December 31, 2011 to $156.6 million at December 31, 2012.  The international backlog at December 31, 2012 was $107.2 million, a 13% decrease compared to the December 31, 2011 international backlog of $123.6 million.  Total backlog decreased 2% to $263.8 million at December 31, 2012 from $268.6 million at December 31, 2011.  2011 backlog amounts have been restated to reflect the sale of American Augers in 2012.  

Consolidated financial information for the fourth quarter and year ended December 31, 2012 and additional information related to segment revenues and profits are attached as addenda to this press release. 

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "2012 has been a year of uncertainty for the U.S. economy.  Although Congress finally passed a new 27-month Federal highway funding bill in July, it was too late in the 2012 construction season to have an impact.  Without the certainty of Federal infrastructure spending, many of our customers were reluctant to make capital expenditures.  With the Federal highway funding bill in place we hope to see the release of some of the pent up demand in preparation for the 2013 construction season.  In spite of the uncertainty in the general economy, we continued to develop new and innovative products, expand our markets and develop more efficient ways to build our products."    

Dr. Brock continued, "Although we were pleased to declare and pay a special dividend of $1.00 per share during the fourth quarter of 2012, we continue to focus on finding the right acquisitions and expansion opportunities.  We have put our capital to work with new manufacturing tools at many of our companies.  We look forward to completing our factory in Brazil and shipping our first wood pelletizer order in 2013.  As the economy begins to recover we will be poised to take advantage of opportunities that present themselves." 

Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 26, 2013, at 10:00 A.M. Eastern Time to review its December 31, 2012 results as well as current business conditions.  The number to call for this interactive teleconference is (877) 407-9210.  International callers should dial (201) 689-8049.   Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call.  The live broadcast of Astec's conference call will be available online at the Company's website:  www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, March 12, 2013 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 409143.  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 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 oil, gas and water drilling 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 in 2013, the effects on the Company from its backlog, the Federal highway bill, the uncertainty in the general economy, and the success of new product development, and the effect of the research and development tax credit.  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, 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, 2011 and the Company's quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2012.  The Company plans to file its Form 10-K timely by March 1, 2013. 






Astec Industries, Inc.



Consolidated Balance Sheets



(in thousands)



(unaudited)







Dec 31

Dec 31




2012

2011



Assets





Current assets





Cash and cash equivalents

$         80,929

$        57,505



Receivables, net

89,048

102,060



Inventories

308,622

299,065



Prepaid expenses and other

21,267

26,924



Total current assets

499,866

485,554



Property and equipment, net

182,839

188,018



Other assets

41,860

43,311



Total assets

$       724,565

$      716,883



Liabilities and equity





Current liabilities





Accounts payable - trade

$         46,210

$        55,170



Other accrued liabilities

98,159

98,852



Total current liabilities

144,369

154,022



Other non-current liabilities

32,198

33,678



Total equity

547,998

529,183



Total liabilities and equity

$       724,565

$      716,883























Astec Industries, Inc.



Consolidated Statements of Income



(in thousands, except per share data)



(unaudited)







Three Months Ended

Twelve Months Ended


Dec 31

Dec 31


2012

2011

2012

2011

Net sales

$       227,640

$      253,293

$       936,273

$       908,641

Cost of sales

179,574

199,244

729,334

698,149

Gross profit

48,066

54,049

206,939

210,492

Selling, general, administrative & engineering expenses

39,833

41,435

156,843

150,965

Asset impairment charge

-

-

-

2,170

Income from operations

8,233

12,614

50,096

57,357

Interest expense

97

54

339

190

Other income, net of expenses

621

930

2,928

1,965

Income from continuing operations before income taxes

8,757

13,490

52,685

59,132

Income taxes on continuing operations

3,355

5,141

19,096

19,337

Net income from continuing operations

5,402

8,349

33,589

39,795

Net income attributable to noncontrolling interest

37

28

161

102

Net income attributable to controlling interest from continuing operations

5,365

8,321

33,428

39,693

Net income (loss) from discontinued operations

3,001

(351)

5,218

169

Income tax on discontinued operations

1,000

6

1,817

(56)

Gain on disposal of discontinued operations (net of tax of $1,979)

3,378

-

3,378

-

Net income attributable to controlling interest  

$         10,744

$          7,964

$         40,207

$         39,918





















Earnings per Common Share





Net income attributable to controlling interest from continuing operations





          Basic

$             0.24

$            0.37

$             1.47

$             1.76

          Diluted

$             0.23

$            0.36

$             1.45

$             1.73











Net income from discontinued operations





          Basic

$             0.24

$           (0.02)

$             0.30

$             0.01

          Diluted

$             0.23

$           (0.02)

$             0.29

$             0.01











Net income attributable to controlling interest





          Basic

$             0.47

$            0.35

$             1.77

$             1.77

          Diluted

$             0.47

$            0.35

$             1.74

$             1.74











Weighted average common shares outstanding





          Basic

22,693

22,613

22,680

22,589

          Diluted

23,057

23,018

23,051

22,984
















Astec Industries, Inc.


Segment Revenues and Profits


For the three months ended December 31, 2012 and 2011


(in thousands)


(unaudited)



Asphalt Group

Aggregate and Mining
Group

Mobile Asphalt
Paving Group

Underground Group

All Others

Total


2012 Revenues

59,663

77,404

34,344

20,985

35,244

227,640


2011 Revenues

68,009

84,630

45,424

16,379

38,851

253,293


Change $

(8,346)

(7,226)

(11,080)

4,606

(3,607)

(25,653)


Change %

(12.3%)

(8.5%)

(24.4%)

28.1%

(9.3%)

(10.1%)










2012 Gross Profit

15,733

18,041

6,396

2,026

5,870

48,066


2012 Gross Profit %

26.4%

23.3%

18.6%

9.7%

16.7%

21.1%


2011 Gross Profit

16,665

21,552

10,804

(1,028)

6,056

54,049


2011 Gross Profit %

24.5%

25.5%

23.8%

(6.3%)

15.6%

21.3%


Change

(932)

(3,511)

(4,408)

3,054

(186)

(5,983)










2012 Profit (Loss)

7,477

4,852

1,086

(1,065)

(7,438)

4,912


2011 Profit (Loss)

8,889

8,379

5,666

(3,644)

(12,030)

7,260


Change $

(1,412)

(3,527)

(4,580)

2,579

4,592

(2,348)


Change %

(15.9%)

(42.1%)

(80.8%)

70.8%

38.2%

(32.3%)


















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




2012

2011

Change $



Total profit for all segments

$                  4,912

$                  7,260

$                 (2,348)



Net income attributable to non-controlling interest in subsidiary

(37)

(28)

(9)



Recapture of intersegment profit

490

1,089

(599)



Net income attributable to controlling interest from continuing operations

5,365

8,321

(2,956)



Income (loss) from discontinued operations net of tax

2,001

(357)

2,358



Gain on sale of discontinued operations, net of tax

3,378

-

3,378



Net income attributable to controlling interest  

$                10,744

$                  7,964

$                  2,780



























Astec Industries, Inc.


Segment Revenues and Profits


For the Twelve months ended December 31, 2012 and 2011


(in thousands)


(unaudited)



Asphalt Group

Aggregate and Mining
Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total


2012 Revenues

234,562

355,428

158,115

82,802

105,366

936,273


2011 Revenues

260,404

333,278

187,988

37,683

89,288

908,641


Change $

(25,842)

22,150

(29,873)

45,119

16,078

27,632


Change %

(9.9%)

6.6%

(15.9%)

119.7%

18.0%

3.0%










2012 Gross Profit

53,468

90,554

34,727

9,864

18,326

206,939


2012 Gross Profit %

22.8%

25.5%

22.0%

11.9%

17.4%

22.1%


2011 Gross Profit

61,151

83,389

49,962

478

15,512

210,492


2011 Gross Profit %

23.5%

25.0%

26.6%

1.3%

17.4%

23.2%


Change

(7,683)

7,165

(15,235)

9,386

2,814

(3,553)










2012 Profit (Loss)

21,018

34,687

10,721

(2,238)

(30,080)

34,108


2011 Profit (Loss)

29,310

31,493

26,485

(7,318)

(38,229)

41,741


Change $

(8,292)

3,194

(15,764)

5,080

8,149

(7,633)


Change %

(28.3%)

10.1%

(59.5%)

69.4%

21.3%

(18.3%)


















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




2012

2011

Change $



Total profit for all segments

$                34,108

$                41,741

$                 (7,633)



Net income attributable to non-controlling interest in subsidiary

(161)

(102)

(59)



Elimination of intersegment profit

(519)

(1,946)

1,427



Net income attributable to controlling interest from continuing operations

33,428

39,693

(6,265)



Income from discontinued operations net of tax

3,401

225

3,176



Gain on sale of discontinued operations, net of tax

3,378

-

3,378



Net income attributable to controlling interest  

$                40,207

$                39,918

$                    289



































Astec Industries, Inc.


Backlog by Segment


December 31, 2012 and 2011


(in thousands)


(Unaudited)



Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total


2012 Backlog

139,828

88,123

4,265

13,904

17,671

263,791


2011 Backlog

115,775

98,262

6,149

21,342

27,090

268,618


Change $

24,053

(10,139)

(1,884)

(7,438)

(9,419)

(4,827)


Change %

20.8%

(10.3%)

(30.6%)

(34.9%)

(34.8%)

(1.8%)


























SOURCE Astec Industries, Inc.



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