CHATTANOOGA, Tenn., Oct. 19 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2010.
Revenues for the third quarter of 2010 were $177.9 million compared with $166.1 million for the third quarter of 2009 for a 7.1% increase. Domestic sales were $98.6 million during the third quarter of 2010 compared to $101.3 million during the third quarter of 2009 for a decrease of 2.6%. International sales were $79.3 million during the third quarter of 2010 compared to $64.8 million during the third quarter of 2009 for an increase of 22.4%. The Company reported net income attributable to controlling interest of $7.4 million for the third quarter of 2010 compared to net income attributable to controlling interest of $3.3 million for the third quarter of 2009 for an increase of 124.2%. Net income attributable to controlling interest for the third quarter of 2010 was $0.32 per diluted share compared to $0.15 per diluted share for the third quarter of 2009 for a 113.3% increase.
The Company's backlog at September 30, 2010 was $145.6 million compared to $144.3 million at September 30, 2009 for a 0.9% increase.
Consolidated financial statements for the third quarter ended September 30, 2010 and additional information related to segment revenues, profits, and backlog are attached to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We saw a marginal improvement in revenue for the third quarter, and a significant improvement in our net income. This increase was attributable to the downsizing we did in 2009, more productive fabricating and machine tools, increased parts sales and improved utilization of capacity. During the quarter, weakness in the domestic markets was offset by increases in international sales and parts sales.
"We expect to see a continued weakness in domestic sales for the next 12 to 24 months. This could change with passage of a new Federal Highway Bill. To sustain and grow our revenue during these uncertain times, we are increasing our sales, service and parts personnel throughout the world. We are also increasing our presence in the mining industries and growing our product offering in the energy business."
Dr. Brock continued, "Considering the severity of the continuing economic downturn, we are pleased with our results and feel that we are positioned to take advantage of any opportunities that may occur."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 19, 2010 at 10:00 A.M. Eastern Time to review its third 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, November 2, 2010, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 358499. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within 5 days after the call.
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's equipment and manufacturing operations are divided into four primary business groups: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. The Other Group contains wood processing equipment manufacturing and Australian distribution for several of the Astec companies as well as Corporate.
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 the remainder of 2010, the effects on the Company from increasing its sales, service and parts personnel, the effects of the economic downturn, the continued growth of our international business, and the status of the multi-year highway bill. 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, tax and healthcare reform, 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 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, 2009.
Astec Industries, Inc. |
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Consolidated Balance Sheets |
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(In thousands) |
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(Unaudited) |
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Sept 30 |
Sept 30 |
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2010 |
2009 |
||
Assets |
|||
Current assets |
|||
Cash and cash equivalents |
$ 81,366 |
$ 36,149 |
|
Receivables, net |
88,266 |
65,033 |
|
Inventories |
242,137 |
263,705 |
|
Prepaid expenses and other |
16,452 |
22,067 |
|
Total current assets |
428,221 |
386,954 |
|
Property and equipment, net |
168,414 |
169,559 |
|
Other assets |
33,698 |
49,901 |
|
Total assets |
$ 630,333 |
$ 606,414 |
|
Liabilities and equity |
|||
Current liabilities |
|||
Accounts payable - trade |
$ 39,382 |
$ 36,444 |
|
Other accrued liabilities |
79,619 |
75,823 |
|
Total current liabilities |
119,001 |
112,267 |
|
Other non-current liabilities |
28,094 |
28,387 |
|
Total equity |
483,238 |
465,760 |
|
Total liabilities and equity |
$ 630,333 |
$ 606,414 |
|
Astec Industries, Inc. |
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Consolidated Statements of Operations |
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(In thousands) |
|||||
(Unaudited) |
|||||
Three Months Ended |
Nine Months Ended |
||||
Sept 30 |
Sept 30 |
||||
2010 |
2009 |
2010 |
2009 |
||
Net sales |
$ 177,853 |
$ 166,084 |
$ 580,557 |
$ 560,231 |
|
Cost of sales |
135,913 |
131,439 |
445,797 |
438,968 |
|
Gross profit |
41,940 |
34,645 |
134,760 |
121,263 |
|
Selling, general, administrative & engineering expenses |
31,808 |
30,445 |
95,351 |
93,478 |
|
Income from operations |
10,132 |
4,200 |
39,409 |
27,785 |
|
Interest expense |
30 |
66 |
289 |
418 |
|
Other income, net of expenses |
492 |
555 |
1,103 |
1,330 |
|
Income before income taxes |
10,594 |
4,689 |
40,223 |
28,697 |
|
Income taxes |
3,198 |
1,320 |
13,665 |
10,157 |
|
Net income |
7,396 |
3,369 |
26,558 |
18,540 |
|
Net income attributable to non-controlling interest |
34 |
25 |
94 |
16 |
|
Net income attributable to controlling interest |
$ 7,362 |
$ 3,344 |
$ 26,464 |
$ 18,524 |
|
Earnings per Common Share |
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Net income attributable to controlling interest |
|||||
Basic |
$ 0.33 |
$ 0.15 |
$ 1.18 |
$ 0.83 |
|
Diluted |
$ 0.32 |
$ 0.15 |
$ 1.16 |
$ 0.82 |
|
Weighted average common shares outstanding |
|||||
Basic |
22,533,606 |
22,453,073 |
22,504,876 |
22,439,635 |
|
Diluted |
22,843,300 |
22,735,064 |
22,814,634 |
22,711,526 |
|
Certain amounts for 2009 have been reclassified to conform with the 2010 presentation. |
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Astec Industries, Inc. |
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Segment Revenues and Profits |
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For the three months ended September 30, 2010 and 2009 |
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(in thousands) |
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(Unaudited) |
|||||||
Asphalt Group |
Aggregate and |
Mobile Asphalt |
Underground Group |
All Others |
Total |
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2010 Revenues |
45,478 |
60,263 |
36,681 |
19,220 |
16,211 |
177,853 |
|
2009 Revenues |
44,556 |
55,865 |
36,814 |
16,939 |
11,910 |
166,084 |
|
Change $ |
922 |
4,398 |
(133) |
2,281 |
4,301 |
11,769 |
|
Change % |
2.1% |
7.9% |
(0.4%) |
13.5% |
36.1% |
7.1% |
|
2010 Gross Profit |
11,001 |
14,839 |
10,395 |
2,007 |
3,698 |
41,940 |
|
2010 Gross Profit % |
24.2% |
24.6% |
28.3% |
10.4% |
22.8% |
23.6% |
|
2009 Gross Profit |
10,769 |
12,367 |
9,148 |
784 |
1,577 |
34,645 |
|
2009 Gross Profit % |
24.2% |
22.1% |
24.8% |
4.6% |
13.2% |
20.9% |
|
Change |
232 |
2,472 |
1,247 |
1,223 |
2,121 |
7,295 |
|
2010 Profit (Loss) |
4,041 |
4,437 |
5,188 |
(1,569) |
(4,480) |
7,617 |
|
2009 Profit (Loss) |
4,045 |
2,811 |
4,281 |
(3,007) |
(4,505) |
3,625 |
|
Change $ |
(4) |
1,626 |
907 |
1,438 |
25 |
3,992 |
|
Change % |
(0.1%) |
57.8% |
21.2% |
47.8% |
0.6% |
110.1% |
|
Certain amounts for 2009 have been reclassified to conform with the 2010 presentation. |
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Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on |
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For the three months ended September 30 |
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2010 |
2009 |
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Total profit for all segments |
$ 7,617 |
$ 3,625 |
|
Net income attributable to non-controlling interest in subsidiary |
(34) |
(25) |
|
Elimination of intersegment profit |
(221) |
(256) |
|
Net income attributable to controlling interest |
$ 7,362 |
$ 3,344 |
|
Astec Industries, Inc. |
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Segment Revenues and Profits |
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For the nine months ended September 30, 2010 and 2009 |
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(in thousands) |
|||||||
(Unaudited) |
|||||||
Asphalt Group |
Aggregate and |
Mobile Asphalt |
Underground Group |
All Others |
Total |
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2010 Revenues |
180,901 |
186,182 |
125,995 |
41,783 |
45,696 |
580,557 |
|
2009 Revenues |
197,385 |
162,893 |
105,077 |
54,331 |
40,545 |
560,231 |
|
Change $ |
(16,484) |
23,289 |
20,918 |
(12,548) |
5,151 |
20,326 |
|
Change % |
(8.4%) |
14.3% |
19.9% |
(23.1%) |
12.7% |
3.6% |
|
2010 Gross Profit |
46,169 |
43,225 |
33,138 |
2,519 |
9,709 |
134,760 |
|
2010 Gross Profit % |
25.5% |
23.2% |
26.3% |
6.0% |
21.2% |
23.2% |
|
2009 Gross Profit |
49,860 |
36,761 |
24,501 |
3,818 |
6,323 |
121,263 |
|
2009 Gross Profit % |
25.3% |
22.6% |
23.3% |
7.0% |
15.6% |
21.6% |
|
Change |
(3,691) |
6,464 |
8,637 |
(1,299) |
3,386 |
13,497 |
|
2010 Profit (Loss) |
24,410 |
12,232 |
16,662 |
(7,012) |
(18,058) |
28,234 |
|
2009 Profit (Loss) |
27,325 |
8,532 |
10,632 |
(9,589) |
(18,320) |
18,580 |
|
Change $ |
(2,915) |
3,700 |
6,030 |
2,577 |
262 |
9,654 |
|
Change % |
(10.7%) |
43.4% |
56.7% |
26.9% |
1.4% |
52.0% |
|
Certain amounts for 2009 have been reclassified to conform with the 2010 presentation. |
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Segment revenues are reported net of intersegment revenues. Segment gross profit is net of |
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For the nine months ended September 30 |
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2010 |
2009 |
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Total profit for all segments |
$ 28,234 |
$ 18,580 |
|
Net income attributable to non-controlling interest in subsidiary |
(94) |
(16) |
|
Elimination of intersegment profit |
(1,676) |
(40) |
|
Net income attributable to controlling interest |
$ 26,464 |
$ 18,524 |
|
Astec Industries, Inc. |
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Backlog by Segment |
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September 30, 2010 and 2009 |
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(in thousands) |
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(Unaudited) |
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Asphalt Group |
Aggregate |
Mobile Asphalt |
Underground Group |
All Others |
Total |
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2010 Backlog |
74,034 |
55,367 |
6,141 |
4,290 |
5,811 |
145,643 |
|
2009 Backlog |
76,328 |
54,693 |
4,346 |
2,947 |
5,968 |
144,282 |
|
Change $ |
(2,294) |
674 |
1,795 |
1,343 |
(157) |
1,361 |
|
Change % |
(3.0%) |
1.2% |
41.3% |
45.6% |
(2.6%) |
0.9% |
|
SOURCE Astec Industries, Inc.
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