Astec Industries Reports Third Quarter Results

Oct 19, 2010, 07:00 ET from Astec Industries, Inc.

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.

Consolidated Balance Sheets

(In thousands)

(Unaudited)

Sept 30

Sept 30

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.

Consolidated Statements of Operations

(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

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.

Astec Industries, Inc.

Segment Revenues and Profits

For the three months ended September 30, 2010 and 2009

(in thousands)

(Unaudited)

Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

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.

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 three months ended September 30

2010

2009

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.

Segment Revenues and Profits

For the nine months ended September 30, 2010 and 2009

(in thousands)

(Unaudited)

Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

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.

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 nine months ended September 30

2010

2009

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.

Backlog by Segment

September 30, 2010 and 2009

(in thousands)

(Unaudited)

Asphalt Group

Aggregate and Mining Group

Mobile Asphalt Paving Group

Underground Group

All Others

Total

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.



RELATED LINKS

http://www.astecindustries.com