2014

Astec Q1 2012 Earnings Up 20% On 16% Increase In Sales

CHATTANOOGA, Tenn., April 24, 2012 /PRNewswire/ -- Astec Industries, Inc. (Nasdaq:   ASTE) today reported results for their first quarter ended March 31, 2012.  Net sales for the first quarter of 2012 were $266.6 million compared to $230.2 million for the first quarter of 2011, a 16% increase.  Earnings for the first quarter of 2012 were $12.2 million or $0.53 per diluted share compared to earnings for the first quarter of 2011 of $10.1 million or $0.44 per diluted share, an increase of $0.09 or 20% per diluted share. 

International sales increased 27%, from $82.7 million for the first quarter of 2011 to $105.2 million for the first quarter of 2012.  Domestic sales were $161.4 million for the first quarter of 2012 compared to $147.5 million for the first quarter of 2011, a 9% increase.    

The Company's domestic backlog increased 30%, from $124.8 million at March 31, 2011 to $162.8 million at March 31, 2012.  The international backlog at March 31, 2012 was $122.8 million, a 12% decrease from the March 31, 2011 international backlog of $139.9 million.  The March 31, 2011 backlog has been restated to reflect acquisitions made late in 2011.  

Consolidated financial information for the first quarter ended March 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, "We are pleased with our sales and earnings growth during the first quarter of 2012.  Our sales growth was in line with our expectations but our gross margins are not where we want them. Although they improved over the fourth quarter of 2011, we will continue to focus on improving our gross margins and refining our manufacturing processes on our new products.  The expiration of the R&D tax credit at the end of 2011 resulted in a first quarter increase in our effective tax rate to 37% from our historical average of 35%, reducing earnings by $0.02 per share."

Dr. Brock continued, "Considering the many uncertainties in our economy and the environment of regulatory change, we believe our revenue and earnings growth validates our strategy over the past two years.  We will continue to actively seek accretive bolt-on acquisitions and to develop new products to meet the needs of our customers."

Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 24, 2012, at 10:00 A.M. Eastern Time to review its first quarter 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, May 8, 2012 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 392851.  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 quarter of 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, 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)



Mar 31

Mar 31


2012

2011

Assets



Current assets



Cash and cash equivalents

$      41,642

$      80,171

Receivables, net

113,609

100,221

Inventories

313,407

272,663

Prepaid expenses and other

21,976

21,173

Total current assets

490,634

474,228

Property and equipment, net

191,489

167,567

Other assets

43,607

35,025

Total assets

$    725,730

$    676,820

Liabilities and equity



Current liabilities



Accounts payable - trade

$      56,137

$      52,124

Other accrued liabilities

92,593

92,684

Total current liabilities

148,730

144,808

Other non-current liabilities

33,901

29,987

Total equity

543,099

502,025

Total liabilities and equity

$    725,730

$    676,820













Astec Industries, Inc.

Consolidated Statements of Income

(in thousands, except shares and share data)

(unaudited)



Three Months Ended


Mar 31


2012

2011

Net sales

$    266,637

$    230,189

Cost of sales

205,991

175,485

Gross profit

60,646

54,704

Selling, general, administrative & engineering expenses

41,887

39,489

Income from operations

18,759

15,215

Interest expense

47

36

Other income, net of expenses

850

406

Income before income taxes

19,562

15,585

Income taxes

7,304

5,427

Net income

12,258

10,158

Net income attributable to noncontrolling interest

13

14

Net income attributable to controlling interest

$      12,245

$      10,144







Earnings per Common Share



Net income attributable to controlling interest



          Basic

$          0.54

$          0.45

          Diluted

$          0.53

$          0.44







Weighted average common shares outstanding



          Basic

22,643,406

22,566,105

          Diluted

23,053,873

22,919,430







    








Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended March 31, 2012 and 2011

(in thousands)

(unaudited)


Asphalt Group

Aggregate and

Mining Group

Mobile Asphalt

Paving Group

Underground Group

All Others

Total

2012 Revenues

68,671

91,304

41,993

36,729

27,940

266,637

2011 Revenues

73,754

78,853

49,955

11,667

15,960

230,189

Change $

(5,083)

12,451

(7,962)

25,062

11,980

36,448

Change %

(6.9%)

15.8%

(15.9%)

214.8%

75.1%

15.8%








2012 Gross Profit

16,396

23,737

10,604

5,134

4,775

60,646

2012 Gross Profit %

23.9%

26.0%

25.3%

14.0%

17.1%

22.7%

2011 Gross Profit

19,228

18,749

13,440

123

3,164

54,704

2011 Gross Profit %

26.1%

23.8%

26.9%

1.1%

19.8%

23.8%

Change

(2,832)

4,988

(2,836)

5,011

1,611

5,942








2012 Profit (Loss)

7,391

9,571

3,921

128

(9,280)

11,731

2011 Profit (Loss)

10,820

5,622

7,312

(3,849)

(8,500)

11,405

Change $

(3,429)

3,949

(3,391)

3,977

(780)

326

Change %

(31.7%)

70.2%

(46.4%)

103.3%

(9.2%)

2.9%















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 March 31



2012

2011

Change $


Total profit for all segments

$        11,731

$               11,405

$      326


Net income attributable to non-controlling interest in subsidiary

(13)

(14)

1


Recapture (elimination) of intersegment profit

527

(1,247)

1,774


Net income attributable to controlling interest

$        12,245

$               10,144

$   2,101





































Astec Industries, Inc.

Backlog by Segment

March 31, 2012 and 2011

(in thousands)

(unaudited)


Asphalt Group

Aggregate and

Mining Group

Mobile Asphalt

Paving Group

Underground Group

All Others

Total

2012 Backlog

123,327

102,686

10,799

35,816

12,980

285,608

2011 Backlog

111,515

92,308

19,911

33,198

7,774

264,706

Change $

11,812

10,378

(9,112)

2,618

5,206

20,902

Change %

10.6%

11.2%

(45.8%)

7.9%

67.0%

7.9%















SOURCE Astec Industries, Inc.



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