Astec Industries Reports Third Quarter Results
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 Nine Months
Ended 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 Aggregate Mobile Underground All
Group and Asphalt Group Others Total
Mining Paving
------- Group Group ------------ ------- -----
------- -------
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 Aggregate Mobile Underground All
Group and Asphalt Group Others Total
Mining Paving
------- Group Group ------------ ------- -----
------- -------
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 Mobile Underground All
Group Aggregate Asphalt Group Others Total
and
Mining Paving
------- Group Group ------------ ------- -----
------- -------
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.