2014

Astec Industries Reports Second Quarter Results

CHATTANOOGA, Tenn., July 24, 2012 /PRNewswire/ -- Astec Industries, Inc. (Nasdaq:   ASTE) today reported results for their second quarter ended June 30, 2012.  Net sales for the second quarter of 2012 were $253.9 million compared to $247.8 million for the second quarter of 2011, a 2% increase.  Earnings for the second quarter of 2012 were $10.4 million or $0.45 per diluted share compared to earnings for the second quarter of 2011 of $14.1 million or $0.61 per diluted share, a decrease of $0.16 or 26% per diluted share. 

Domestic sales increased 16% to $161.5 million for the second quarter of 2012 compared to $139.5 million for the second quarter of 2011.  International sales were $92.4 million for the second quarter of 2012 compared to $108.3 million for the second quarter of 2011, a 15% decrease.

Net sales for the first half of 2012 were $520.5 million compared to $477.9 million for the first half of 2011, a 9% increase.  Earnings for the first half of 2012 were $22.6 million or $0.98 per diluted share compared to earnings for the first half of 2011 of $24.2 million or $1.06 per diluted share, a decrease of $0.08 or 8% per diluted share. 

Domestic sales increased 13% to $322.9 million for the first half of 2012 compared to $287.0 million for the first half of 2011.  International sales were $197.6 million for the first half of 2012 compared to $190.9 million for the first half of 2011, a 3% increase.

The Company's domestic backlog increased 44%, from $103.0 million at June 30, 2011 to $148.7 million at June 30, 2012.  The international backlog at June 30, 2012 was $109.6 million, a 19% decrease from the June 30, 2011 international backlog of $134.5 million.  Total backlog increased 9% to $258.3 million from $237.5 million at June 30, 2012 and 2011, respectively.  2011 backlog amounts have been restated to reflect acquisitions made late in 2011.  

Consolidated financial information for the quarter and six months ended June 30, 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, "During the second quarter, domestic sales were higher overall but we saw significant declines in domestic sales in the Asphalt and Mobile Asphalt Paving groups.  The series of 90-day highway bill continuations that lasted through the second quarter created funding uncertainties at state transportation departments.  This resulted in delays in, and in some cases the elimination of, projects during the peak road construction season.  Our international sales were hurt by a stronger dollar and uncertainty in the global economy.  Although we don't expect to overcome this shortfall this year, the new 27-month highway bill should help demand return to a more normalized level during the second half of the year." 

Dr. Brock continued, "In spite of the uncertainty that exists in the global economy, we continue to develop new products and explore new applications for existing products, all with an eye toward diversification.  We continue to look for acquisitions that fit our strategic goals and help us make our customers successful."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 24, 2012, at 10:00 A.M. Eastern Time to review its June 30, 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, August 7, 2012 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 397799.  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 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 in the second half of 2012, the effects on the Company from its backlog, the effects of our recent acquisitions, dispositions, and joint ventures, the Federal highway bill, the uncertainty in the global economy, and the success of the Company's 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, 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. 

 

Astec Industries, Inc.

Consolidated Balance Sheets

(in thousands)

(unaudited)



Jun 30

Jun 30


2012

2011

Assets



Current assets



Cash and cash equivalents

$         35,916

$        73,490

Receivables, net

119,983

103,842

Inventories

322,086

281,152

Prepaid expenses and other

28,401

24,261

Total current assets

506,386

482,745

Property and equipment, net

191,289

174,582

Other assets

43,171

33,880

Total assets

$       740,846

$      691,207

Liabilities and equity



Current liabilities



Accounts payable - trade

$         51,824

$        49,499

Other accrued liabilities

102,811

92,253

Total current liabilities

154,635

141,752

Other non-current liabilities

33,458

30,960

Total equity

552,753

518,495

Total liabilities and equity

$       740,846

$      691,207




Astec Industries, Inc.



Consolidated Statements of Income



(in thousands, except per share data)



(unaudited)







Three Months Ended

Six Months Ended


Jun 30

Jun 30


2012

2011

2012

2011

Net sales

$       253,875

$      247,756

$       520,513

$       477,945

Cost of sales

197,645

185,785

403,636

361,271

Gross profit

56,230

61,971

116,877

116,674

Selling, general, administrative & engineering expenses

40,376

38,789

82,263

78,278

Asset impairment charge

-

2,170

-

2,170

Income from operations

15,854

21,012

34,614

36,226

Interest expense

42

58

90

94

Other income, net of expenses

627

366

1,477

773

Income before income taxes

16,439

21,320

36,001

36,905

Income taxes

6,010

7,215

13,314

12,642

Net income

10,429

14,105

22,687

24,263

Net income attributable to noncontrolling interest

63

19

76

33

Net income attributable to controlling interest

$         10,366

$        14,086

$         22,611

$         24,230











Earnings per Common Share





Net income attributable to controlling interest





          Basic

$             0.46

$            0.62

$             1.00

$             1.07

          Diluted

$             0.45

$            0.61

$             0.98

$             1.06











Weighted average common shares outstanding





          Basic

22,691

22,576

22,667

22,571

          Diluted

23,041

22,992

23,047

22,956

 

Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended June 30, 2012 and 2011

(in thousands)

(unaudited)


Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

2012 Revenues

59,431

94,860

45,160

34,830

19,594

253,875

2011 Revenues

68,183

86,562

53,466

23,088

16,457

247,756

Change $

(8,752)

8,298

(8,306)

11,742

3,137

6,119

Change %

(12.8%)

9.6%

(15.5%)

50.9%

19.1%

2.5%








2012 Gross Profit

11,775

25,818

10,151

5,223

3,263

56,230

2012 Gross Profit %

19.8%

27.2%

22.5%

15.0%

16.7%

22.1%

2011 Gross Profit

16,750

22,406

15,627

3,934

3,254

61,971

2011 Gross Profit %

24.6%

25.9%

29.2%

17.0%

19.8%

25.0%

Change

(4,975)

3,412

(5,476)

1,289

9

(5,741)








2012 Profit (Loss)

3,902

11,567

4,082

355

(8,590)

11,316

2011 Profit (Loss)

9,102

9,727

8,532

172

(13,565)

13,968

Change $

(5,200)

1,840

(4,450)

183

4,975

(2,652)

Change %

(57.1%)

18.9%

(52.2%)

106.4%

36.7%

(19.0%)















Segment revenues are reported net of intersegment revenues.  Segment gross profit is net of profit on intersegment revenues.  A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):











Three months ended June 30



2012

2011

Change $


Total profit for all segments

$                11,316

$                13,968

$                 (2,652)


Net income attributable to non-controlling interest in subsidiary

(63)

(19)

(44)


Recapture (Elimination) of intersegment profit

(887)

137

(1,024)


Net income attributable to controlling interest

$                10,366

$                14,086

$                 (3,720)























Astec Industries, Inc.

Segment Revenues and Profits

For the six months ended June 30, 2012 and 2011

(in thousands)

(unaudited)


Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

2012 Revenues

128,101

186,164

87,153

71,559

47,536

520,513

2011 Revenues

141,937

165,415

103,421

34,755

32,417

477,945

Change $

(13,836)

20,749

(16,268)

36,804

15,119

42,568

Change %

(9.7%)

12.5%

(15.7%)

105.9%

46.6%

8.9%








2012 Gross Profit

28,171

49,555

20,756

10,357

8,038

116,877

2012 Gross Profit %

22.0%

26.6%

23.8%

14.5%

16.9%

22.5%

2011 Gross Profit

35,978

41,155

29,067

4,057

6,417

116,674

2011 Gross Profit %

25.3%

24.9%

28.1%

11.7%

19.8%

24.4%

Change

(7,807)

8,400

(8,311)

6,300

1,621

203








2012 Profit (Loss)

11,293

21,138

8,003

483

(17,870)

23,047

2011 Profit (Loss)

19,921

15,349

15,843

(3,677)

(22,063)

25,373

Change $

(8,628)

5,789

(7,840)

4,160

4,193

(2,326)

Change %

(43.3%)

37.7%

(49.5%)

113.1%

19.0%

(9.2%)















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):











Six months ended June 30



2012

2011

Change $


Total profit for all segments

$                23,047

$                25,373

$                 (2,326)


Net income attributable to non-controlling interest in subsidiary

(76)

(33)

(43)


Elimination of intersegment profit

(360)

(1,110)

750


Net income attributable to controlling interest

$                22,611

$                24,230

$                 (1,619)






























Astec Industries, Inc.

Backlog by Segment

June 30, 2012 and 2011

(in thousands)

(Unaudited)


Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

2012 Backlog

115,429

97,394

5,055

26,887

13,508

258,273

2011 Backlog

84,794

95,598

10,297

34,352

12,448

237,489

Change $

30,635

1,796

(5,242)

(7,465)

1,060

20,784

Change %

36.1%

1.9%

(50.9%)

(21.7%)

8.5%

8.8%








 

SOURCE Astec Industries, Inc.



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