Crude Oil ( ) Brent Crude ( ) Natural Gas ( ) S&P 500 ( ) PHLX Oil ( )
 October 20, 2015 - 7:01 AM EDT
Print Email Article Font Down Font Up Charts

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 30Sept 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 EndedNine Months Ended
 Sept 30Sept 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
CorporateTotal 
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
CorporateTotal 
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

Primary Logo


Source: GlobeNewswire (October 20, 2015 - 7:01 AM EDT)

News by QuoteMedia
www.quotemedia.com