ASTE Astec Industries Inc

CHATTANOOGA, Tenn., April 24 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (NASDAQ:ASTE) today reported results for their first quarter ended March 31, 2007. Net income for the first quarter of 2007 was $0.69 per diluted share compared to $0.50 per diluted share in 2006 for a 38.0% increase. Revenues for the first quarter of 2007 were $215.6 million compared with $185.7 million for the first quarter of 2006 for a 16.1% increase. Domestic sales accounted for 77.2% and international sales for 22.8% of revenues during the first quarter of 2007 compared to 81.3% for domestic sales and 18.7% for international sales during the first quarter of 2006. The Company reported net income of $15.3 million for the first quarter of 2007 compared to net income of $10.9 million for the first quarter of 2006 for an increase of 40.4%. The Company's backlog at March 31, 2007 was $260.7 million compared to $144.5 million at March 31, 2006 for an 80.4% increase. Consolidated financial statements for the first quarter ended March 31, 2007 and additional information related to segment revenues and profits are attached as addenda to this press release. Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are pleased with the increased volume, improved margins and net income for the first quarter of 2007. The initiatives implemented by the Company to increase gross margins resulted in a 90 basis point improvement in the first quarter of 2007 compared to the first quarter of 2006. The gross margin percentage improved in the first quarter of 2007 to 25.2% from 24.3% in the first quarter of 2006. We will continue to focus on these initiatives and will monitor inflation closely and take the necessary actions to maintain margins. Selling, General, Administrative and Engineering Expenses decreased from 14.9% of net sales in 2006 to 14.2% of net sales in 2007." "We believe that our increase in sales is reflective of a strong economy, an overwhelming need for road improvements resulting in state initiatives to increase funding, market acceptance of new products, improving market share, increasing sales of recycling equipment and stronger international sales." Investor Conference Call and Web Simulcast Astec will conduct a conference call on April 24, 2007, at 10:00 A.M. Eastern Time to review its first 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: http://www.astecindustries.com/www/docs/100, Conference Calls Section. An archived webcast will be available for 90 days at http://www.astecindustries.com/. A replay of the conference call will be available through midnight on Tuesday, May 1, 2007 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 238541. A transcription of the conference call will be made available under the Investor Relation 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 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. 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 second quarter and future generally, the ability to maintain margins, the economy, the need for road improvements, the state initiatives to increase funding, the market's acceptance of new products, the Company's improving market share, the increase in sales of recycling equipment and international sales. 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, downturns in the general economy or the commercial construction industry, cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells, increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company's amended credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, managing and expanding in international markets, the timing of large contracts, production capacity, general business conditions in the industry, demand for the Company's products, seasonality of 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, 2006. Astec Industries, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands) (Unaudited) March 31 March 31 2007 2006 Assets Current assets Cash and cash equivalents $57,120 $20,856 Receivables, net 86,226 78,025 Inventories 164,725 148,167 Prepaid expenses and other 14,188 13,215 Total current assets 322,259 260,263 Property and equipment, net 117,720 99,453 Other assets 25,182 24,647 Total assets $465,161 $384,363 Liabilities and shareholders' equity Current liabilities Accounts payable - trade $52,837 $46,181 Other accrued liabilities 74,679 61,978 Total current liabilities 127,516 108,159 Other non-current liabilities 20,160 15,636 Minority interest in consolidated subsidiary 704 606 Total shareholders' equity 316,781 259,962 Total liabilities and shareholders' equity $465,161 $384,363 Astec Industries, Inc. and Subsidiaries Consolidated Statements of Income (In thousands) (Unaudited) Three Months Ended March 31 2007 2006 Net sales $215,563 $185,724 Cost of sales 161,190 140,572 Gross profit 54,373 45,152 Selling, general, administrative & engineering expenses 30,529 27,740 Income from operations 23,844 17,412 Interest expense 415 430 Other income, net of expense 685 265 Income before income taxes and minority interest 24,114 17,247 Income taxes 8,746 6,347 Minority interest in earnings 34 3 Net income $15,334 $10,897 Earnings per Common Share Net income: Basic $0.71 $0.51 Diluted $0.69 $0.50 Weighted average common shares outstanding: Basic 21,644,097 21,194,708 Diluted 22,194,736 21,897,073 Certain amounts for 2006 have been reclassified to conform with the 2007 presentation. Astec Industries, Inc. and Subsidiaries Segment Revenues and Profits For the three months ended March 31, 2007 and 2006 (in thousands) (Unaudited) Aggregate Mobile and Asphalt Under- Asphalt Mining Paving ground All Group Group Group Group Others Total 2007 Revenues 65,010 82,343 43,950 24,260 - 215,563 2006 Revenues 55,732 71,262 36,353 22,377 - 185,724 Change $ 9,278 11,081 7,597 1,883 - 29,839 Change % 16.6% 15.5% 20.9% 8.4% - 16.1% 2007 Gross Profit 17,927 20,879 10,182 5,395 (10) 54,373 2007 Gross Profit % 27.6% 25.4% 23.2% 22.2% - 25.2% 2006 Gross Profit 14,568 17,186 9,258 4,246 (106) 45,152 2006 Gross Profit % 26.1% 24.1% 25.5% 19.0% - 24.3% Change 3,359 3,693 924 1,149 96 9,221 2007 Profit (Loss) 11,453 10,375 5,477 1,014 (13,110) 15,209 2006 Profit (Loss) 8,293 7,982 4,932 302 (10,424) 11,085 Change $ 3,160 2,393 545 712 (2,686) 4,124 Change % 38.1% 30.0% 11.1% 235.8% (25.8%) 37.2% Certain amounts for 2006 have been reclassified to conform with the 2007 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 consolidated net income is as follows: For the three months ended December 31 2007 2006 Total profit for all segments $15,209 $11,085 Minority interest in earnings of subsidiary (34) (3) Recapture (elimination) of intersegment profit 159 (185) Consolidated net income $15,334 $10,897 Astec Industries, Inc. and Subsidiaries Backlog by Segment March 31, 2007 and 2006 (in thousands) (Unaudited) Aggregate Mobile and Asphalt Under- Asphalt Mining Paving ground All Group Group Group Group Others Total 2007 Backlog 113,973 120,605 16,430 9,697 - 260,705 2006 Backlog 44,744 77,829 5,713 16,195 - 144,481 Change $ 69,229 42,776 10,717 (6,498) - 116,224 Change % 154.7% 55.0% 187.6% (40.1%) - 80.4% DATASOURCE: Astec Industries, Inc. CONTACT: J. Don Brock, Chairman of the Board & C.E.O., +1-423-867-4210, fax, +1-423-867-4127, , or F. McKamy Hall, Vice President and Chief Financial Officer, +1-423-899-5898, fax, +1-423-899-4456, , or David C. Silvious, Corporate Controller, +1-423- 899-5898, fax, +1-423-899-4456, , all of Astec Industries, Inc. Web site: http://www.astecindustries.com/

Copyright