Astec Industries Reports Third Quarter 2015 Results
CHATTANOOGA, Tenn., Oct. 20, 2015 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their third quarter ended September 30, 2015.
Net sales for the third quarter of 2015 were $211.4 million compared to $220.2 million for the third quarter of 2014, a 4% decrease. Earnings for the third quarter of 2015 were $2.3 million or $0.10 per diluted share compared to $1.9 million or $0.08 per diluted share in the third quarter of 2014, an increase of 25%.
Domestic sales increased 10% to $156.3 million for the third quarter of 2015 compared to $142.6 million for the third quarter of 2014. International sales decreased 29% to $55.1 million for the third quarter of 2015 compared to $77.6 million for the third quarter of 2014.
Net sales for the first nine months of 2015 were $768.1 million compared to $736.1 million for the first nine months of 2014, a 4% increase. Earnings for the first nine months of 2015 were $29.2 million or $1.26 per diluted share compared to $26.0 million or $1.12 per diluted share in the first nine months of 2014, a 12% increase.
Domestic sales increased 12% to $562.0 million for the first nine months of 2015 compared to $502.7 million for the first nine months of 2014. International sales were $206.1 million for the first nine months of 2015 compared to $233.4 million for the first nine months of 2014, a 12% decrease.
The Company’s domestic backlog decreased 1%, from $189.2 million at September 30, 2014 to $187.5 million at September 30, 2015. The international backlog at September 30, 2015 was $58.1 million compared to $105.8 million at September 30, 2014 for a decrease of 45%. Total backlog decreased 17% to $245.6 million at September 30, 2015 from $295.0 million at September 30, 2014.
Consolidated financial information for the quarter and nine months ended September 30, 2015 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, “We were pleased to improve our earnings by 25% in the third quarter versus the third quarter of last year, especially given the current headwinds we are facing, including low oil prices, the global mining slow down, the strong U.S. Dollar, and the absence of a long-term highway bill in the United States.”
Mr. Brock continued, “Low oil prices have hurt our Energy Group sales. The mining slowdown has hurt our Aggregate and Mining Group sales. The strong U.S. Dollar has hurt our international sales and the lack of a long-term highway bill has hurt all of our groups.”
Mr. Brock concluded, “Despite these headwinds, our year-to-date revenues are up 4% and our year-to-date earnings are up 12% versus last year. We have accomplished these increases through a variety of efforts, but two that stand out are our new product offerings that have allowed us to secure many of the orders we have shipped this year and our lean manufacturing initiatives which have improved margins and earnings. We remain committed to new product releases in each of our groups in order to earn more business moving ahead. Eventually the headwinds will subside and we will be well positioned to take advantage when they do.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 20, 2015, at 10:00 A.M. Eastern Time to review its September 30, 2015 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 3, 2015 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13622090. 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 asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. Astec’s manufacturing operations are divided into three primary business segments: road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels, biomass production, and water drilling equipment (Energy Group).
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 effects on the Company from low oil prices, the global mining slow down, the strong U.S. Dollar, and the absence of a long-term highway bill in the United States. 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, oil and liquid asphalt prices, rising steel prices, 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, 2014.
Astec Industries, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Sept 30
Sept 30
2015
2014
Assets
Current assets
Cash and cash equivalents
$
13,985
$
13,820
Investments
1,834
1,903
Receivables, net
105,226
108,844
Inventories
384,531
370,436
Prepaid expenses and other
50,398
36,629
Total current assets
555,974
531,632
Property and equipment, net
170,508
190,395
Other assets
60,805
66,554
Total assets
$
787,287
$
788,581
Liabilities and equity
Current liabilities
Accounts payable - trade
$
46,406
$
53,034
Other current liabilities
91,568
97,059
Total current liabilities
137,974
150,093
Non-current liabilities
36,919
40,139
Total equity
612,394
598,349
Total liabilities and equity
$
787,287
$
788,581
Astec Industries, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
Nine Months Ended
Sept 30
Sept 30
2015
2014
2015
2014
Net sales
$
211,350
$
220,157
$
768,141
$
736,086
Cost of sales
166,212
176,896
594,724
573,890
Gross profit
45,138
43,261
173,417
162,196
Selling, general, administrative & engineering expenses
41,023
38,867
128,136
122,539
Income from operations
4,115
4,394
45,281
39,657
Interest expense
505
193
1,222
375
Other
844
860
3,212
2,410
Income before income taxes
4,454
5,061
47,271
41,692
Income taxes
2,162
3,145
18,070
15,734
Net income attributable to controlling interest
$
2,292
$
1,916
$
29,201
$
25,958
Earnings per Common Share
Net income attributable to controlling interest
Basic
$
0.10
$
0.08
$
1.27
$
1.14
Diluted
$
0.10
$
0.08
$
1.26
$
1.12
Weighted average common shares outstanding
Basic
22,943
22,830
22,930
22,813
Diluted
23,121
23,109
23,118
23,103
Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended September 30, 2015 and 2014
(in thousands)
(unaudited)
Infrastructure Group
Aggregate and Mining Group
Energy Group
Corporate
Total
2015 Revenues
85,625
80,549
45,176
-
211,350
2014 Revenues
78,698
88,177
53,282
-
220,157
Change $
6,927
(7,628
)
(8,106
)
-
(8,807
)
Change %
8.8
%
(8.7
)%
(15.2
)%
-
(4.0
)%
2015 Gross Profit
16,104
19,226
9,794
14
45,138
2015 Gross Profit %
18.8
%
23.9
%
21.7
%
-
21.4
%
2014 Gross Profit
11,367
21,604
10,277
13
43,261
2014 Gross Profit %
14.4
%
24.5
%
19.3
%
-
19.7
%
Change
4,737
(2,378
)
(483
)
1
1,877
2015 Profit (Loss)
2,116
3,790
1,941
(6,853
)
994
2014 Profit (Loss)
520
6,806
2,789
(7,137
)
2,978
Change $
1,596
(3,016
)
(848
)
284
(1,984
)
Change %
306.9
%
(44.3
)%
(30.4
)%
4.0
%
(66.6
)%
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 September 30
2015
2014
Change $
Total profit for all segments
$
994
$
2,978
$
(1,984
)
Recapture (elimination) of intersegment profit
964
(1,212
)
2,176
Net loss attributable to non-controlling interest
334
150
184
Net income attributable to controlling interest
$
2,292
$
1,916
$
376
Astec Industries, Inc.
Segment Revenues and Profits
For the nine months ended September 30, 2015 and 2014
(in thousands)
(unaudited)
Infrastructure Group
Aggregate and Mining Group
Energy Group
Corporate
Total
2015 Revenues
336,768
285,790
145,583
-
768,141
2014 Revenues
296,074
287,976
152,036
-
736,086
Change $
40,694
(2,186
)
(6,453
)
-
32,055
Change %
13.7
%
(0.8
)%
(4.2
)%
-
4.4
%
2015 Gross Profit
74,292
70,182
28,912
31
173,417
2015 Gross Profit %
22.1
%
24.6
%
19.9
%
-
22.6
%
2014 Gross Profit
59,135
70,722
32,309
30
162,196
2014 Gross Profit %
20.0
%
24.6
%
21.3
%
-
22.0
%
Change
15,157
(540
)
(3,397
)
1
11,221
2015 Profit (Loss)
29,472
25,441
2,805
(29,154
)
28,564
2014 Profit (Loss)
21,124
27,065
7,659
(27,578
)
28,270
Change $
8,348
(1,624
)
(4,854
)
(1,576
)
294
Change %
39.5
%
(6.0
)%
(63.4
)%
(5.7
)%
1.0
%
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):
Nine months ended September 30
2015
2014
Change $
Total profit for all segments
$
28,564
$
28,270
$
294
Elimination of intersegment profit
(32
)
(2,468
)
2,436
Net loss attributable to non-controlling interest
669
156
513
Net income attributable to controlling interest
$
29,201
$
25,958
$
3,243
Astec Industries, Inc.
Backlog by Segment
September 30, 2015 and 2014
(in thousands)
(unaudited)
Infrastructure Group
Aggregate and Mining Group
Energy Group
Total
2015 Backlog
145,073
68,110
32,432
245,615
2014 Backlog
135,895
80,978
78,156
295,029
Change $
9,178
(12,868
)
(45,724
)
(49,414
)
Change %
6.8
%
(15.9
)%
(58.5
)%
(16.7
)%
For Additional Information Contact:
Benjamin G. Brock
Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: bbrock@astecindustries.com
or
David C. Silvious
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: dsilvious@astecindustries.com
or
Stephen C. Anderson
Vice President, Director of Investor Relations & Corporate Secretary
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
Source: GlobeNewswire
(October 20, 2015 - 7:01 AM EDT)