ASTE Astec Industries Inc

CHATTANOOGA, Tenn., Oct. 21 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (NASDAQ:ASTE) today reported results for its third quarter ended September 30, 2008. Revenues for the third quarter of 2008 were $237.4 million compared with $206.2 million for the third quarter of 2007 for a 15.1% increase. Domestic sales accounted for $135.3 million during the third quarter of 2008 compared to $131.7 million during the third quarter of 2007. International sales accounted for $102.1 million of revenues during the third quarter of 2008 compared to $74.5 million during the third quarter of 2007. The Company reported net income of $16.0 million for the third quarter of 2008 compared to net income of $11.6 million for the third quarter of 2007 for an increase of 37.9%. Net income for the third quarter of 2008 was $0.71 per diluted share compared to $0.51 per diluted share for the third quarter of 2007 for a 39.2% increase. The Company's backlog at September 30, 2008 was $255.7 million compared to $239.9 million at September 30, 2007 for a 6.6% increase. Consolidated financial statements for the third quarter ended September 30, 2008 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 are very pleased with our third quarter results. With our present backlog, we expect a strong finish for the year. The injection of $8.0 billion into the Highway Trust Fund ensures full funding at the federal level for 2009. Many states, however, are experiencing lower tax revenues as a result of the economic downturn and, in particular, the higher oil prices. The current trend toward lower oil prices should positively impact the state fuel tax collections as drivers return to the road and reduce the price of asphalt resulting in a greater number of road building contracts. Furthermore, the growth in the energy and mining portions of our business and the strong possibility of a stimulus package for roads and bridges gives us hope of continued strength and growth in 2009." Investor Conference Call and Web Simulcast Astec will conduct a conference call on October 21, 2008, 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: 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, November 4, 2008, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 300071. 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. Astec also has a company engaged in the wood chipping and grinding 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 the fourth quarter and future generally, the ability to maintain or improve margins, the economy, the need for road improvements, state and federal initiatives to increase funding, the awarding of future contracts, the market's acceptance of new products, the Company's improving market share, and the increase in 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 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, 2007. Astec Industries, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands) (Unaudited) Sept 30 Sept 30 2008 2007 Assets Current assets Cash and cash equivalents $28,839 $48,164 Receivables, net 93,912 83,324 Inventories 249,378 201,982 Prepaid expenses and other 17,158 14,025 Total current assets 389,287 347,495 Property and equipment, net 147,822 137,312 Other assets 68,368 42,689 Total assets $605,477 $527,496 Liabilities and shareholders' equity Current liabilities Accounts payable $55,115 $55,303 Other current liabilities 88,131 83,511 Total current liabilities 143,246 138,814 Other non-current liabilities 25,405 22,646 Minority interest in consolidated subsidiary 836 833 Total shareholders' equity 435,990 365,203 Total liabilities and shareholders' equity $605,477 $527,496 Astec Industries, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands) (Unaudited) Three Months Ended Nine Months Ended Sept 30 Sept 30 2008 2007 2008 2007 Net sales $237,443 $206,239 $778,218 $648,216 Cost of sales 178,640 157,678 586,906 486,339 Gross profit 58,803 48,561 191,312 161,877 Selling, general, administrative & engineering expenses 34,269 31,926 106,638 92,774 Income from operations 24,534 16,635 84,674 69,103 Interest expense 276 149 528 765 Other income, net of expenses 260 638 1,099 2,038 Income before income taxes and minority interest 24,518 17,124 85,245 70,376 Income taxes 8,512 5,482 30,593 24,812 Minority interest in earnings (loss) of subsidiary 44 68 99 151 Net income $15,962 $11,574 $54,553 $45,413 Earnings per Common Share Net income Basic $0.72 $0.52 $2.45 $2.08 Diluted $0.71 $0.51 $2.41 $2.03 Weighted average common shares outstanding Basic 22,289,973 22,116,275 22,270,121 21,881,565 Diluted 22,600,978 22,581,075 22,595,174 22,393,677 Astec Industries, Inc. and Subsidiaries Segment Revenues and Profits For the three months ended September 30, 2008 and 2007 (in thousands) (Unaudited) Aggregate Mobile and Asphalt Under- Asphalt Mining Paving ground All Group Group Group Group Others Total 2008 Revenues 56,658 90,268 27,993 40,443 22,081 237,443 2007 Revenues 51,860 81,801 33,323 28,335 10,920 206,239 Change $ 4,798 8,467 (5,330) 12,108 11,161 31,204 Change % 9.3% 10.4% (16.0%) 42.7% 102.2% 15.1% 2008 Gross Profit 17,045 20,402 6,547 11,318 3,491 58,803 2008 Gross Profit % 30.1% 22.6% 23.4% 28.0% 15.8% 24.8% 2007 Gross Profit (Loss) 12,375 18,700 8,096 7,498 1,892 48,561 2007 Gross Profit % 23.9% 22.9% 24.3% 26.5% 17.3% 23.5% Change 4,670 1,702 (1,549) 3,820 1,599 10,242 2008 Profit (Loss) 10,675 10,773 1,465 6,583 (11,948) 17,548 2007 Profit (Loss) 6,656 8,154 3,542 3,223 (9,794) 11,781 Change $ 4,019 2,619 (2,077) 3,360 (2,154) 5,767 Change % 60.4% 32.1% (58.6%) 104.3% (22.0%) 49.0% 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 consolidated net income is as follows: For the three months ended September 30 2008 2007 Total profit for all segments $17,548 $11,781 Minority interest in earnings of subsidiary (44) (68) Elimination of intersegment profit (1,542) (139) Consolidated net income $15,962 $11,574 Astec Industries, Inc. and Subsidiaries Segment Revenues and Profits For the nine months ended September 30, 2008 and 2007 (in thousands) (Unaudited) Aggregate Mobile and Asphalt Under- Asphalt Mining Paving ground All Group Group Group Group Others Total 2008 Revenues 200,572 273,753 130,180 109,298 64,415 778,218 2007 Revenues 183,507 253,138 117,662 82,988 10,921 648,216 Change $ 17,065 20,615 12,518 26,310 53,494 130,002 Change % 9.3% 8.1% 10.6% 31.7% 489.8% 20.1% 2008 Gross Profit 54,652 66,087 32,696 26,728 11,149 191,312 2008 Gross Profit % 27.2% 24.1% 25.1% 24.5% 17.3% 24.6% 2007 Gross Profit 48,358 62,444 28,999 20,209 1,867 161,877 2007 Gross Profit % 26.4% 24.7% 24.6% 24.4% 17.1% 25.0% Change 6,294 3,643 3,697 6,519 9,282 29,435 2008 Profit (Loss) 33,964 32,942 16,030 11,972 (38,724) 56,184 2007 Profit (Loss) 29,827 30,859 14,768 6,515 (36,534) 45,435 Change $ 4,137 2,083 1,262 5,457 (2,190) 10,749 Change % 13.9% 6.8% 8.5% 83.8% (6.0%) 23.7% 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 nine months ended September 30 2008 2007 Total profit for all segments $56,184 $45,435 Minority interest in earnings of subsidiary (99) (151) Recapture (elimination) of intersegment profit (1,532) 129 Consolidated net income $54,553 $45,413 Astec Industries, Inc. and Subsidiaries Backlog by Segment September 30, 2008 and 2007 (in thousands) (Unaudited) Aggregate Mobile and Asphalt Under- Asphalt Mining Paving ground All Group Group Group Group Others Total 2008 Backlog 126,604 104,365 974 14,841 8,880 255,664 2007 Backlog 110,234 96,363 2,779 21,638 8,892 239,906 Change $ 16,370 8,002 (1,805) (6,797) (12) 15,758 Change % 14.9% 8.3% (65.0%) (31.4%) (0.1%) 6.6% 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 Stephen C. Anderson, Secretary - Director of Investor Relations, +1-423-899-5898, Fax: +1-423-899-4456, , all of Astec Industries, Inc. Web site: http://www.astecindustries.com/

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