Astec Industries Reports Fourth Quarter and 2010 Results
CHATTANOOGA, Tenn., Feb. 22, 2011 /PRNewswire/ — Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its fourth quarter and year ended December 31, 2010. Net sales for the fourth quarter of 2010 were $190.8 million compared to $177.9 million for the fourth quarter of 2009, a 7.3% increase. Domestic sales for the fourth quarter of 2010 were $119.6 million or 62.7% of fourth quarter 2010 net sales compared to $103.1 million for the fourth quarter of 2009 or 58.0% of 2009 fourth quarter net sales, a 16.0% increase. International sales were $71.2 million in the fourth quarter of 2010 or 37.3% of fourth quarter net sales in 2010, a 4.8% decrease from international sales of $74.8 million in the fourth quarter of 2009 or 42.0% of 2009 fourth quarter net sales.
Net income attributable to controlling interest for the fourth quarter of 2010 was $6.0 million or $0.26 per diluted share compared to a net loss attributable to controlling interest in the fourth quarter of 2009 of $15.5 million or $0.69 per share. Net income attributable to controlling interest for the year ended December 31, 2010 was $32.4 million or $1.42 per diluted share compared to $3.1 million or $0.14 per diluted share for 2009. The 2009 fourth quarter and full year results include intangible asset impairment charges of $17.0 million or $15.0 million after tax. Excluding the effects of the 2009 impairment charges, net income attributable to controlling interest increased $6.4 million, or $.28 per diluted share in the fourth quarter of 2010 compared to 2009 and increased $14.3 million, or $0.62 per share, in 2010 compared to 2009.
Net sales for the year ended December 31, 2010 were $771.3 million compared with $738.1 million for the same period in 2009, an increase of 4.5%. Domestic sales were $476.9 million or 61.8% of 2010 revenues, a 2.4% increase over 2009 domestic sales of $465.5 million or 63.1% of 2009 revenues. International sales were $294.4 million or 38.2% of 2010 revenues, an 8.0% increase compared to 2009 international sales of $272.6 million or 36.9% of 2009 revenues.
The Company’s total backlog at December 31, 2010 was $216.6 million compared to $135.1 million at December 31, 2009, an increase of $81.5 million or 60.4%. The international backlog at December 31, 2010 was $109.6 million compared to $62.2 million at the end of 2009, an increase of 76. 1%. The domestic backlog at December 31, 2010 was $107.0 million compared to $72.9 million at the end of 2009, an increase of 46.8%. The asphalt segment accounted for 48.5% of the total international backlog increase and the aggregate segment backlog accounted for 38.2% of the total domestic backlog increase.
Consolidated financial information for the fourth quarter and year ended December 31, 2010, additional information related to segment revenues, profits and backlogs, and a reconciliation of non-GAAP measures are attached as addenda to this press release.
Dr. J. Don Brock, Chairman and Chief Executive Officer, commented that “We are very pleased with the 2010 sales level. The recession that started in September 2008 was deep and fast. Our management right sized their businesses under extremely difficult conditions. For significant domestic growth, we need a responsible six-year highway bill which should give customers the vision to make larger capital investments.”
Dr. Brock continued, “As we look forward to 2011, we expect continued growth in international sales. We continue to seek domestic and international acquisitions. We are expanding Astec Australia and will use that business model to sell multiple product lines in other international locations. Without a highway bill, we expect domestic sales to remain weak; however we hope our new and improved products and increased international sales will make up that shortfall. We see 2011 revenue improving over 2010 and expect to return to slow growth.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 22, 2011, at 10:00 a.m. EST to review its fourth quarter and fiscal 2010 financial results as well as its near term general outlook for 2011. 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 at: 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 Saturday, March 5, 2011, by dialing (877) 660-6853 or (201) 612-7415 for international callers; Account #: 286; Conference ID #: 367061. A transcription of the conference call will be made available under the investor relations section of the Astec Industries, Inc. website within five business days after the call.
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world’s infrastructure. Astec’s manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. We also have a company engaged in the wood grinding and processing industry.
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 2011, the effects on the Company from its backlog, the effects of the economic downturn, stimulus package and credit crisis, and the effects of our recent acquisitions. 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, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, the success of new business models and products, general business conditions in the industry, demand for the Company’s products both domestic and international, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, 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 and the Company’s quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2010. The Company plans to file its Form 10-K timely by March 1, 2011.
Astec Industries, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
Dec 31 Dec 31
2010 2009
---- ----
Assets
Current assets
Cash and cash equivalents $94,597 $40,429
Receivables, net 80,863 68,104
Inventories 252,981 248,548
Prepaid expenses and other 19,380 27,284
------ ------
Total current assets 447,821 384,365
Property and equipment, net 168,242 172,057
Other assets 33,576 34,479
------ ------
Total assets $649,639 $590,901
======== ========
Liabilities and equity
Current liabilities
Accounts payable - trade $44,493 $36,388
Other accrued liabilities 85,933 69,919
------ ------
Total current liabilities 130,426 106,307
Other non-current liabilities 26,407 32,334
Total equity 492,806 452,260
------- -------
Total liabilities and equity $649,639 $590,901
---------------------------- ======== ========
Astec Industries, Inc.
Consolidated Statements of Operations
(in thousands, except shares and share data)
(unaudited)
Three Months Ended Twelve Months Ended
Dec 31 Dec 31
2010 2009 2010 2009
---- ---- ---- ----
Net sales $190,779 $177,862 $771,335 $738,094
Cost of sales 146,491 146,699 592,288 585,667
------- ------- ------- -------
Gross profit 44,288 31,163 179,047 152,427
Selling, general,
administrative &
engineering expenses 36,272 32,006 131,623 125,484
Intangible asset
impairment charge - 17,036 - 17,036
--- ------ --- ------
Income (loss) from
operations 8,016 (17,879) 47,424 9,907
Interest expense 62 118 352 537
Other income, net of
expenses 528 541 1,631 1,871
Income (loss) before
income taxes 8,482 (17,456) 48,703 11,241
Income taxes 2,467 (2,022) 16,131 8,135
Net income (loss) 6,015 (15,434) 32,572 3,106
Net income attributable
to noncontolling
interest 48 22 142 38
Net income (loss)
attributable to
controlling interest $5,967 $(15,456) $32,430 $3,068
--------------------- ====== ======== ======= ======
Earnings per Common
Share
Net income (loss)
attributable to
controlling interest
Basic $0.26 $(0.69) $1.44 $0.14
===== ====== ===== =====
Diluted $0.26 $(0.69) $1.42 $0.14
===== ====== ===== =====
Weighted average common
shares outstanding
Basic 22,553,426 22,468,618 22,517,246 22,446,940
========== ========== ========== ==========
Diluted 22,874,394 22,468,618 22,829,799 22,715,780
========== ========== ========== ==========
Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended December 31, 2010 and 2009
(in thousands)
(unaudited)
Asphalt Aggregate Mobile Underground All
Group and Asphalt Group Others Total
------- --------- ------- ----------- ------ -----
Mining Paving
Group Group
------- -------
2010 Revenues 45,518 70,218 40,441 18,322 16,280 190,779
2009 Revenues 61,142 55,439 31,759 13,023 16,499 177,862
Change $(15,624) 14,779 8,682 5,299 (219) 12,917
Change % (25.6%) 26.7% 27.3% 40.7% (1.3%) 7.3%
2010 Gross
Profit 9,894 17,491 11,442 1,946 3,515 44,288
2010 Gross
Profit % 21.7% 24.9% 28.3% 10.6% 21.6% 23.2%
2009 Gross
Profit 13,530 9,723 7,155 (1,293) 2,048 31,163
2009 Gross
Profit % 22.1% 17.5% 22.5% (9.9%) 12.4% 17.5%
Change (3,636) 7,768 4,287 3,239 1,467 13,125
2010 Profit
(Loss) 4,262 4,347 6,571 (1,080) (9,079) 5,021
2009 Profit
(Loss) 6,130 (8,704) 2,742 (4,971) (11,294) (16,097)
Change $(1,868) 13,051 3,829 3,891 2,215 21,118
Change % (30.5%) 149.9% 139.6% 78.3% 19.6% 131.2%
-------- ------- ----- ----- ---- ---- -----
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 December 31
------------------------------
2010 2009 Change $
---- ---- --------
Total profit for all segments $5,021 $(16,097) $21,118
Net income attributable to non-
controlling interest in subsidiary (48) (22) (26)
Recapture of intersegment profit 994 663 331
--- --- ---
Net income (loss) attributable to
controlling interest $5,967 $(15,456) $21,423
====== ======== =======
Astec Industries, Inc.
Segment Revenues and Profits
For the twelve months ended December 31, 2010 and 2009
(in thousands)
(unaudited)
Asphalt Aggregate Mobile Underground All
Group and Asphalt Group Others Total
------- --------- ------- ----------- ------ -----
Mining Paving
Group Group
------- -------
2010 Revenues 226,419 256,400 166,436 60,105 61,975 771,335
2009 Revenues 258,527 218,332 136,836 67,353 57,046 738,094
Change $(32,108) 38,068 29,600 (7,248) 4,929 33,241
Change % (12.4%) 17.4% 21.6% (10.8%) 8.6% 4.5%
2010 Gross
Profit 56,063 60,716 44,580 4,464 13,224 179,047
2010 Gross
Profit % 24.8% 23.7% 26.8% 7.4% 21.3% 23.2%
2009 Gross
Profit 63,390 46,484 31,656 2,526 8,371 152,427
2009 Gross
Profit % 24.5% 21.3% 23.1% 3.8% 14.7% 20.7%
Change (7,327) 14,232 12,924 1,938 4,853 26,620
2010 Profit
(Loss) 28,672 16,578 23,234 (8,092) (27,138) 33,254
2009 Profit
(Loss) 33,455 (172) 13,374 (14,560) (29,614) 2,483
Change $(4,783) 16,750 9,860 6,468 2,476 30,771
Change % (14.3%) 9738.4% 73.7% 44.4% 8.4% 1239.3%
----------- ------- ------ ---- ---- --- ------
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):
Twelve months ended December 31
-------------------------------
2010 2009 Change $
---- ---- --------
Total profit for all segments $33,254 $2,483 $30,771
Net income attributable to non-
controlling interest in subsidiary (142) (38) (104)
Recapture (elimination) of intersegment
profit (682) 623 (1,305)
---- --- ------
Net income attributable to controlling
interest $32,430 $3,068 $29,362
======= ====== =======
Astec Industries, Inc.
Backlog by Segment
December 31, 2010 and 2009
(in thousands)
(Unaudited)
Asphalt Aggregate Mobile Underground All
Group and Asphalt Group Others Total
------- --------- ------- ----------- ------ -----
Mining Paving
Group Group
------- -------
2010 Backlog 108,792 81,958 15,109 4,843 5,925 216,627
2009 Backlog 75,591 47,793 3,609 1,898 6,199 135,090
Change $33,201 34,165 11,500 2,945 (274) 81,537
Change % 43.9% 71.5% 318.6% 155.2% (4.4%) 60.4%
------------ ---- ---- ----- ----- ------ ----
Astec Industries, Inc.
Segment Profits Excluding Intangible Asset Impairment Charges
For the three and twelve months ended December 31, 2010 and 2009
(in thousands, except shares and share data)
(unaudited)
Three
months
ended
December Asphalt Aggregate Mobile
31 Group and Asphalt Underground All Others Total
--------- ------- --------- ------- ----------- ---------- -----
Mining Paving
Group Group Group
------- ------- -----
2009
Profit
(loss) as
reported 6,130 (8,704) 2,742 (4,971) (11,294) (16,097)
2009
Impairment
charges
after tax - (8,476) - (269) (6,277) (15,022)
2009
Profit
(loss)
excluding
impairment
charges 6,130 (228) 2,742 (4,702) (5,017) (1,075)
2010
Profit
(loss) 4,262 4,347 6,571 (1,080) (9,079) 5,021
Change $(1,868) 4,575 3,829 3,622 (4,062) 6,096
------ ------- ----- ----- ----- ------ -----
Twelve
months
ended
December Asphalt Aggregate Mobile
31 Group and Asphalt Underground All Others Total
--------- ------- --------- ------- ----------- ---------- -----
Mining Paving
Group Group Group
------- ------- -----
2009
Profit
(loss)
as
reported 33,455 (172) 13,374 (14,560) (29,614) 2,483
2009
Impairment
charges
after
tax - (8,476) - (269) (6,277) (15,022)
2009
Profit
(loss)
excluding
impairment
charges 33,455 8,304 13,374 (14,291) (23,337) 17,505
2010
Profit
(loss) 28,672 16,578 23,234 (8,092) (27,138) 33,254
Change $(4,783) 8,274 9,860 6,199 (3,801) 15,749
------ ------- ----- ----- ----- ------ ------
Three months ended December
31
----------------------------
2010 2009 Change $
---- ---- --------
Total profit for all segments
excluding impairment charges $5,021 $(1,075) $6,096
Net income attributable to non-
controlling interest in subsidiary (48) (22) (26)
Recapture (elimination) of
intersegment profit 994 663 331
Net income (loss) attributable to
controlling interest excluding
impairment charges 5,967 (434) 6,401
Intangible asset impairment
charges, net of tax benefit of
$2,014* - (15,022) 15,022
--- ------- ------
Net income (loss) attributable to
controlling interest $5,967 $(15,456) $21,423
====== ======== =======
Earnings per Common Share:
Net income (loss) attributable to
controlling interest excluding
impairment charges
Basic $0.26 $(0.02) $0.28
===== ====== =====
Diluted $0.26 $(0.02) $0.28
===== ====== =====
Net loss from impairment charges
Basic $- $(0.67) $0.67
=== ====== =====
Diluted $- $(0.67) $0.67
=== ====== =====
Net income (loss) attributable to
controlling interest
Basic $0.26 $(0.69) $0.95
===== ====== =====
Diluted $0.26 $(0.69) $0.95
===== ====== =====
Weighted average common shares
outstanding
Basic 22,553,426 22,468,618
========== ==========
Diluted 22,874,394 22,468,618
========== ==========
Twelve months ended December 31
-------------------------------
2010 2009 Change $
---- ---- --------
Total profit for all segments
excluding impairment charges $33,254 $17,505 $15,749
Net income attributable to non-
controlling interest in
subsidiary (142) (38) (104)
Recapture (elimination) of
intersegment profit (682) 623 (1,305)
Net income (loss) attributable to
controlling interest excluding
impairment charges 32,430 18,090 14,340
Intangible asset impairment
charges, net of tax benefit of
$2,014* - (15,022) 15,022
--- ------- ------
Net income (loss) attributable to
controlling interest $32,430 $3,068 $29,362
======= ====== =======
Earnings per Common Share:
Net income (loss) attributable to
controlling interest excluding
impairment charges
Basic $1.44 $0.81 $0.63
===== ===== =====
Diluted $1.42 $0.80 $0.62
===== ===== =====
Net loss from impairment charges
Basic $- $(0.67) $0.67
=== ====== =====
Diluted $- $(0.66) $0.66
=== ====== =====
Net income (loss) attributable to
controlling interest
Basic $1.44 $0.14 $1.30
===== ===== =====
Diluted $1.42 $0.14 $1.28
===== ===== =====
Weighted average common shares
outstanding
Basic 22,517,246 22,446,940
========== ==========
Diluted 22,829,799 22,715,780
========== ==========
* Tax benefit allocated to impairment charges has been revised from
the amount reported in the Company's February 23, 2010 press release.
This revision did not impact the Company's financial statements.
SOURCE Astec Industries, Inc.