Astec Industries Reports Fourth Quarter and 2009 Results
CHATTANOOGA, Tenn., Feb. 23 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the fourth quarter and for the year ended December 31, 2009. Net sales for the fourth quarter of 2009 were $177.9 million and the net loss for the fourth quarter of 2009 was $15.5 million. The net loss for the fourth quarter of 2009, including a non-cash impairment charge of $0.61 per diluted share, was $0.69 per diluted share compared to net income of $8.0 million or $0.38 per diluted share for the fourth quarter of 2008. Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, said, "While we are disappointed with the year-end results for 2009, we are happy to have weathered the economic downturn with a strong balance sheet, no bank debt for money borrowed and over $40 million in cash and equivalents in the bank."
The 2009 fourth quarter results include an intangible impairment charge of approximately $17.0 million ($13.6 million after tax, or $0.61 per share). The impairment charge primarily relates to goodwill attributed to two acquisitions completed prior to the current economic downturn. The net loss for the fourth quarter of 2009 before impairment charge was $0.08 per share. The attached statement of operations contains a separate line item for the impairment charge and attached is a reconciliation to the GAAP measurement.
Net sales for 2009 were $738.1 million compared with $973.7 million for 2008, for a decrease of 24.2%. Domestic net sales were $465.5 million for 2009, a 25.0% decrease compared to 2008. Domestic net sales were 63.1% of 2009 total net sales compared to 63.8% of 2008 total net sales. International sales were $272.6 million for 2009, a 22.7% decrease compared to 2008. Gross margins for 2009 compared to 2008 decreased 330 basis points. Income from operations decreased 89.2% from $91.8 million in 2008 to $9.9 million, including the intangible impairment charge of $17.0 million in 2009. The Company reported net income of $3.1 million, or $0.14 per diluted share for 2009 compared with a net income of $63.1 million, or $2.80 per diluted share for 2008.
Net sales for the fourth quarter of 2009 were $177.9 million compared with $195.5 million for the fourth quarter of 2008, for a decrease of 9.0%. Domestic sales were $103.1 million for the fourth quarter of 2009, a 20.9% decrease compared to the fourth quarter of 2008 or 58.0% of 2009 fourth quarter revenues, compared to domestic sales of $130.4 million for the fourth quarter of 2008, or 66.7% of 2008 fourth quarter revenues. International sales were $74.8 million for the fourth quarter of 2009, a 15.1% increase over the fourth quarter of 2008 or 42.0% of 2009 fourth quarter revenues, compared to international sales of $65.0 million for the fourth quarter of 2008, or 33.2% of 2008 fourth quarter revenues.
Consolidated financial information for the fourth quarter and year ended December 31, 2009 and additional information related to segment revenues, profits and backlogs are attached as addenda to this press release.
The Company's total backlog at December 31, 2009 was $135.1 million compared to $193.3 million at December 31, 2008, for a decrease of $58.2 million or 30.0%. The international backlog at December 31, 2009 was $62.2 million compared to $87.7 million at the end of 2008 for a decrease of 29.0%. The domestic backlog at December 31, 2009 was $72.9 million compared to $105.6 million at the end of 2008, a decrease of 31.0%. The asphalt segment accounted for 78.0% of the total domestic backlog decrease and the aggregate segment backlog accounted for 57.0% of the total international backlog decrease.
Dr. J. Don Brock, Chairman and Chief Executive Officer, also commented that, "2009 was a year in which we saw a very deep downturn in the U.S. economy occurring very rapidly. Half of our companies saw revenue drops for the year in the 40% to 50% range. Although roads and bridges only represented 3-1/2% of the federal stimulus package, it was very helpful to our asphalt and mobile equipment company businesses. The engineering for projects to resurface or rehabilitate roads generally can be done very quickly and therefore these jobs were among the first to be awarded. Due to the short timetables required by the federal stimulus package, additional equipment was required particularly in the mobile paving side of the business. As the dollar strengthened in late 2008, we saw a significant drop in our international business which continued through the first six months of 2009. We began to see improvements in our international business with the weakening of the dollar and many countries also passed stimulus packages with strong emphasis on infrastructure improvements."
Dr. Brock continued "As we look forward to 2010, we are hopeful of a slight improvement in our companies that experienced the worst downturn. The continuing indecision on a new multi-year Highway Bill and the timing of the funding of any additional stimulus package for roads, however, makes our customers reluctant to purchase equipment until market visibility improves. On a positive note, we believe the lack of expenditures is creating a pent up demand which should be very beneficial whenever a new Highway Bill is passed. We also believe that we will see continuing improvement in our international business. Despite the downturn in 2009, we have continued to invest in the research and development of new products. This investment has resulted in a number of new "green" products and we hope to generate additional revenues with these products in 2010 and beyond."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 23, 2010, at 10:00 a.m. EST to review its fourth quarter and fiscal 2009 financial results as well as its near term general outlook for 2010. The number to call for this interactive teleconference is (877) 407-8031. International callers should dial (201) 689-8031. 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 9, 2010, by dialing (877) 660-6853 or (201) 612-7415 for international callers; Account #: 286; Conference ID #: 344359. 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 business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. We also have a company engaged in the wood grinding and processing industry.
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 2010, the effects on the Company from its backlog, the effects of the economic downturn, stimulus package and credit crisis, and the effects of our recent acquisitions. 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, future downturns 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, 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, 2008 and the Company's quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2009. The Company plans to file its Form 10-K timely by March 1, 2010.
Astec Industries, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
Dec 31 Dec 31
2009 2008
------ ------
Assets
Current assets
Cash and cash equivalents $40,429 $9,674
Receivables, net 68,104 75,161
Inventories 248,548 285,817
Prepaid expenses and other 27,284 24,447
------ ------
Total current assets 384,365 395,099
Property and equipment, net 172,057 169,130
Other assets 34,479 48,583
------ ------
Total assets $590,901 $612,812
======== ========
Liabilities and equity
Current liabilities
Revolving credit loan $- $3,427
Accounts payable - trade 36,388 51,053
Other accrued liabilities 69,919 89,356
------ ------
Total current liabilities 106,307 143,836
Other non-current liabilities 32,334 28,942
Total equity 452,260 440,034
------- -------
Total liabilities and equity $590,901 $612,812
======== ========
Astec Industries, Inc.
Consolidated Statements of Operations
(In thousands, except shares and per share data)
(Unaudited)
Three Months Ended Twelve Months Ended
Dec 31 Dec 31
2009 2008 2009 2008
---- ---- ---- ----
Net sales $177,862 $195,482 $738,094 $973,700
Cost of sales 146,699 153,648 585,667 740,389
------- ------- ------- -------
Gross profit 31,163 41,834 152,427 233,311
Selling, general, administrative &
engineering expenses 32,006 34,904 125,484 141,542
Intangible asset impairment
Charges 17,036 - 17,036 -
------ - ------ -
Income (loss) from operations (17,879) 6,930 9,907 91,769
Interest expense 118 323 537 851
Other income, net of expenses 541 6,209 1,871 7,144
Income (loss) before income taxes (17,456) 12,816 11,241 98,062
Income taxes (2,022) 4,174 8,135 34,767
------ ----- ----- ------
Net income (loss) (15,434) 8,642 3,106 63,295
Net income attributable to non-
controlling interest 22 67 38 167
-- -- -- ---
Net income (loss) attributable to
controlling interest $(15,456) $8,575 $3,068 $63,128
======== ====== ====== =======
Earnings per Common Share
Net income (loss) attributable to
controlling interest
Basic $(0.69) $0.38 $0.14 $2.83
====== ===== ===== =====
Diluted $(0.69) $0.38 $0.14 $2.80
====== ===== ===== =====
Weighted average common shares
outstanding
Basic 22,468,618 22,339,477 22,446,940 22,287,554
========== ========== ========== ==========
Diluted 22,468,618 22,557,181 22,715,780 22,585,775
========== ========== ========== ==========
Certain amounts for 2008 have been reclassified to conform with the 2009
presentation.
Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended December 31, 2009 and 2008
(in thousands)
(Unaudited)
-----------
Aggregate Mobile
and Asphalt Under-
Asphalt Mining Paving ground All
Group Group Group Group Others Total
------- --------- ------- ------ ------ -----
2009 Revenues 61,142 55,439 31,759 13,023 16,499 177,862
2008 Revenues 56,764 76,598 20,512 25,855 15,753 195,482
Change $ 4,378 (21,159) 11,247 (12,832) 746 (17,620)
Change % 7.7% (27.6%) 54.8% (49.6%) 4.7% (9.0%)
2009 Gross
Profit 13,530 9,723 7,155 (1,293) 2,048 31,163
2009 Gross
Profit % 22.1% 17.5% 22.5% (9.9%) 12.4% 17.5%
2008 Gross
Profit 12,833 16,707 3,130 5,408 3,756 41,834
2008 Gross
Profit % 22.6% 21.8% 15.3% 20.9% 23.8% 21.4%
Change 697 (6,984) 4,025 (6,701) (1,708) (10,671)
2009 Profit
(Loss) 6,130 (8,704) 2,742 (4,971) (11,294) (16,097)
2008 Profit
(Loss) 6,801 4,090 (943) 539 (2,429) 8,058
Change $ (671) (12,794) 3,685 (5,510) (8,865) (24,155)
Change % (9.9%) (312.8%) 390.8% (1022.3%) (365.0%) (299.8%)
---- ------ ----- ------- ------ ------
Certain amounts for 2008 have been reclassified to conform with the 2009
presentation.
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 (loss) attributable to
controlling interest is as follows:
For the three months ended December 31
--------------------------------------
2009 2008
---- ----
Total profit (loss) for all segments $(16,097) $8,058
Net income attributable to
non-controlling interest in subsidiary (22) (67)
Recapture of intersegment profit 663 584
--- ---
Net income (loss) attributable to
controlling interest $(15,456) $8,575
======== ======
Astec Industries, Inc.
Segment Revenues and Profits
For the twelve months ended December 31, 2009 and 2008
(in thousands)
(Unaudited)
-----------
Aggregate Mobile
and Asphalt Under-
Asphalt Mining Paving ground All
Group Group Group Group Others Total
------- --------- ------- ------ ------ -----
2009 Revenues 258,527 218,332 136,836 67,353 57,046 738,094
2008 Revenues 257,336 350,350 150,692 135,152 80,170 973,700
Change $ 1,191 (132,018) (13,856) (67,799) (23,124) (235,606)
Change % 0.5% (37.7%) (9.2%) (50.2%) (28.8%) (24.2%)
2009 Gross
Profit 63,390 46,484 31,656 2,526 8,371 152,427
2009 Gross
Profit % 24.5% 21.3% 23.1% 3.8% 14.7% 20.7%
2008 Gross
Profit 67,485 82,967 35,826 32,127 14,906 233,311
2008 Gross
Profit % 26.2% 23.7% 23.8% 23.8% 18.6% 24.0%
Change (4,095) (36,483) (4,170) (29,601) (6,535) (80,884)
2009 Profit
(Loss) 33,455 (172) 13,374 (14,560) (29,614) 2,483
2008 Profit
(Loss) 40,765 37,032 15,087 12,511 (41,154) 64,241
Change $ (7,310) (37,204) (1,713) (27,071) 11,540 (61,758)
Change % (17.9%) (100.5%) (11.4%) (216.4%) 28.0% (96.1%)
----- ------ ----- ------ ---- -----
Certain amounts for 2008 have been reclassified to conform with the 2009
presentation.
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:
For the twelve months ended December 31
---------------------------------------
2009 2008
---- ----
Total profit for all segments $2,483 $64,241
Net income attributable to
non-controlling
interest in subsidiary (38) (167)
Recapture (elimination) of intersegment
profit 623 (946)
--- ----
Net income attributable to
controlling interest $3,068 $63,128
====== =======
Astec Industries, Inc.
Backlog by Segment
December 31, 2009 and 2008
(in thousands)
(Unaudited)
-----------
Aggregate Mobile
and Asphalt Under-
Asphalt Mining Paving ground All
Group Group Group Group Others Total
------- --------- ------- ------ ------ -----
2009 Backlog 75,591 47,793 3,609 1,898 6,199 135,090
2008 Backlog 106,223 65,340 2,855 12,118 6,780 193,316
Change $ (30,632) (17,547) 754 (10,220) (581) (58,226)
Change % (28.8%) (26.9%) 26.4% (84.3%) (8.6%) (30.1%)
----- ----- ---- ----- ---- -----
Astec Industries, Inc. and Subsidiaries
Reconciliation of Net Earnings (Loss) as Reported to
Net Earnings (Loss) before Impairment Charges
(in thousands, except shares and per share data)
(unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
2009 2009
------------------ -------------------
Net earnings (loss) as reported $(15,456) $3,068
Impairment charges, net of tax
benefit of $3,409 (13,627) (13,627)
------- -------
Net earnings (loss) before
impairment charges $(1,829) $16,695
======= =======
Earnings per Common Share
Net earnings (loss) as reported:
Basic $(0.69) $0.14
====== =====
Diluted $(0.69) $0.14
====== =====
Net loss from impairment charges:
Basic $(0.61) $(0.61)
====== ======
Diluted $(0.61) $(0.60)
====== ======
Net earnings (loss) before impairment
charges:
Basic $(0.08) $0.74
====== =====
Diluted $(0.08) $0.73
====== =====
Weighted average common shares
outstanding
Basic 22,468,618 22,446,940
========== ==========
Diluted 22,468,618 22,715,780
========== ==========
SOURCE Astec Industries, Inc.
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