ASTE Astec Industries Inc

CHATTANOOGA, Tenn., April 21 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (NASDAQ:ASTE) today reported results for their first quarter ended March 31, 2009. Revenues for the first quarter of 2009 were $205 million compared with $263 million for the first quarter of 2008 for a 22% decrease. Domestic sales accounted for 64% and international sales for 36% of revenues during the first quarter of 2009 compared to 65% for domestic sales and 35% for international sales during the first quarter of 2008. The Company reported net income attributable to controlling interest of $7 million for the first quarter of 2009 compared to net income attributable to controlling interest of $18 million for the first quarter of 2008 for a decrease of 58%. Net income attributable to controlling interest for the first quarter of 2009 was $0.33 per diluted share compared to $0.78 per diluted share for the first quarter of 2008 for a 58% decrease. The Company's backlog at March 31, 2009 was $140 million compared to $275 million at March 31, 2008 for a 49% decrease. Consolidated financial information for the first quarter ended March 31, 2009 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, "In light of the severe economic downturn, we are pleased with our first quarter results. The anticipation of the stimulus funding encouraged many state Departments of Transportation to delay letting jobs for five to six months starting in October, 2008. As a result many of our customers completed their open jobs with few new jobs being awarded by states. In April, we have seen very large numbers of highway projects being released by the state Departments of Transportation. We are experiencing an increase in business in our Mobile Group and continued business in the Asphalt Group. Our other companies continue to be slow. We believe the economy hit bottom in late February; however, we believe the recovery will continue to be slow. During this period our strategy will be to aggressively develop new products and enhance existing products. We are developing products that will broaden the number of industries that we serve and that will be counter cyclical to our existing businesses. Our strong balance sheet gives us the flexibility to move forward with product developments that will make us stronger when the economy recovers." Dr. Brock continued, "Due to the severe and rapid downturn that occurred in the fourth quarter, our customers are cautious and are buying equipment only after getting the jobs. Our lower backlog allows us to react to customer needs more quickly and will hopefully prevent us from losing sales due to lengthy deliveries when backlogs are higher." Investor Conference Call and Web Simulcast Astec will conduct a conference call on April 21, 2009, 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 5, 2009 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 313683. 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 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 process 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 2009, 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 and its recovery, the effect of stimulus funding, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, a failure to comply in the future with covenants in the Company's credit facility or to obtain waivers thereof, rising interest rates, decreased funding for highway projects, 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, 2008. Astec Industries, Inc. Consolidated Balance Sheets (In thousands) (Unaudited) Mar 31 Mar 31 2009 2008 Assets Current assets Cash and cash equivalents $10,563 $29,154 Receivables, net 80,456 115,197 Inventories 277,994 219,028 Prepaid expenses and other 20,466 16,621 Total current assets 389,479 380,000 Property and equipment, net 168,196 142,817 Other assets 47,715 52,969 Total assets $605,390 $575,786 Liabilities and equity Current liabilities Revolving credit loan $18,379 $- Accounts payable - trade 41,953 62,807 Other accrued liabilities 70,725 96,261 Total current liabilities 131,057 159,068 Other non-current liabilities 27,562 21,966 Total equity 446,771 394,752 Total liabilities and equity $605,390 $575,786 Astec Industries, Inc. Consolidated Statements of Operations (In thousands) (Unaudited) Three Months Ended Mar 31 2009 2008 Net sales $205,304 $263,072 Cost of sales 161,842 196,852 Gross profit 43,462 66,220 Selling, general, administrative & engineering expenses 31,426 38,779 Income from operations 12,036 27,441 Interest expense 183 131 Other income, net of expenses 214 426 Income before income taxes 12,067 27,736 Income taxes 4,671 10,160 Net income 7,396 17,576 Net income (loss) attributable to noncontrolling interest (35) 57 Net income attributable to controlling interest $7,431 $17,519 Earnings per Common Share Net income attributable to controlling interest Basic $0.33 $0.79 Diluted $0.33 $0.78 Weighted average common shares outstanding Basic 22,430,546 22,237,100 Diluted 22,663,415 22,550,536 Astec Industries, Inc. Segment Revenues and Profits For the three months ended March 31, 2009 and 2008 (in thousands) (Unaudited) Aggregate and Mobile Asphalt Asphalt Group Mining Group Paving Group 2009 Revenues 83,252 51,577 31,404 2008 Revenues 71,585 91,090 47,131 Change $ 11,667 (39,513) (15,727) Change % 16.3% (43.4%) (33.4%) 2009 Gross Profit 20,623 10,904 6,620 2009 Gross Profit % 24.8% 21.1% 21.1% 2008 Gross Profit 19,606 23,157 12,592 2008 Gross Profit % 27.4% 25.4% 26.7% Change 1,017 (12,253) (5,972) 2009 Profit (Loss) 11,999 1,772 2,004 2008 Profit (Loss) 11,845 10,259 6,528 Change $ 154 (8,487) (4,524) Change % 1.3% (82.7%) (69.3%) Underground Group All Others Total 2009 Revenues 20,246 18,825 205,304 2008 Revenues 32,643 20,623 263,072 Change $ (12,397) (1,798) (57,768) Change % (38.0%) (8.7%) (22.0%) 2009 Gross Profit 2,760 2,555 43,462 2009 Gross Profit % 13.6% 13.6% 21.2% 2008 Gross Profit 7,103 3,762 66,220 2008 Gross Profit % 21.8% 18.2% 25.2% Change (4,343) (1,207) (22,758) 2009 Profit (Loss) (2,341) (6,835) 6,599 2008 Profit (Loss) 1,845 (12,725) 17,752 Change $ (4,186) 5,890 (11,153) Change % (226.9%) 46.3% (62.8%) 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 March 31 2009 2008 Total profit for all segments $6,599 $17,752 Net (income) loss attributable to noncontrolling interest in subsidiary 35 (57) Recapture (elimination) of intersegment profit 797 (176) Net income attributable to controlling interest $7,431 $17,519 Astec Industries, Inc. Backlog by Segment March 31, 2009 and 2008 (in thousands) (Unaudited) Aggregate and Mobile Asphalt Asphalt Group Mining Group Paving Group 2009 Backlog 73,971 55,138 1,788 2008 Backlog 128,106 99,637 13,307 Change $ (54,135) (44,499) (11,519) Change % (42.3%) (44.7%) (86.6%) Underground Group All Others Total 2009 Backlog 6,911 2,291 140,099 2008 Backlog 14,893 19,081 275,024 Change $ (7,982) (16,790) (134,925) Change % (53.6%) (88.0%) (49.1%) 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, Director of Investor Relations & Corporate Secretary, +1-423-899-5898, Fax: +1-423- 899-4456, , all of Astec Industries, Inc. Web Site: http://www.astecindustries.com/

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