CHATTANOOGA, Tenn.,
July 20 /PRNewswire-FirstCall/ --
Astec Industries, Inc. (Nasdaq: ASTE) today reported results for
their second quarter ended June 30,
2010.
The Company reported net income attributable to controlling
interest of $10.3 million for the
second quarter of 2010 compared to $7.7
million for the second quarter of 2009 for an increase of
33.8%. Net income attributable to controlling interest for
the second quarter of 2010 was $0.45
per diluted share compared to $0.34
per diluted share for the second quarter of 2009 for a 32.4%
increase.
Revenues for the second quarter of 2010 were $209.2 million compared with $188.8 million for the second quarter of 2009 for
a 10.8% increase. Domestic sales were $129.2 million during the second quarter of 2010
compared to $129.2 million during the
second quarter of 2009. International sales accounted for
$80.0 million of revenues during the
second quarter of 2010 compared to $59.6
million during the second quarter of 2009 and accounted for
38.2% of total sales for the second quarter of 2010 compared to
31.6% for the second quarter of 2009.
The Company's backlog at June 30,
2010 was $139.7 million
compared to $133.6 million at
June 30, 2009 for a 4.6%
increase.
Consolidated financial statements for the second quarter ended
June 30, 2010 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,
"Considering the state of our economy, we are pleased with our
second quarter results. We continue to develop and introduce
new products and apply existing products in the mining and energy
industries, and grow international sales."
Dr. Brock continued, "We remain concerned about the lack of
action by Congress on a new 6-year highway bill. Our
customers will remain cautious and reluctant to make major capital
expenditure commitments until a bill is passed in Washington. In general, customers are
only purchasing equipment needed for current jobs. Customers
continue to purchase components, assemblies and parts for
maintaining or increasing production, but a multi-year highway bill
should give our customers the confidence to expand their production
capacity by purchasing entire plants or installations."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 20, 2010 at 10:00
A.M. Eastern Time to review its second 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, August 3, 2010
by dialing (877) 660-6853, or (201) 612-7415 for international
callers, Account #286, Conference ID# 353865. A transcription
of the conference call will be made available under the Investor
Relation section of the Astec Industries, Inc. website within 5
business 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 its backlog, 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)
|
|
|
|
|
June 30
|
June 30
|
|
|
2010
|
2009
|
|
Assets
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
$
81,989
|
$
10,153
|
|
Receivables, net
|
84,736
|
87,059
|
|
Inventories
|
224,279
|
266,751
|
|
Prepaid expenses and
other
|
18,205
|
23,092
|
|
Total current assets
|
409,209
|
387,055
|
|
Property and equipment,
net
|
167,952
|
170,149
|
|
Other assets
|
34,035
|
48,040
|
|
Total assets
|
$
611,196
|
$
605,244
|
|
Liabilities and equity
|
|
|
|
Current liabilities
|
|
|
|
Revolving credit loan
|
$
-
|
$
11,909
|
|
Accounts payable -
trade
|
37,469
|
37,262
|
|
Other accrued
liabilities
|
73,030
|
66,669
|
|
Total current
liabilities
|
110,499
|
115,840
|
|
Other non-current
liabilities
|
28,598
|
29,145
|
|
Total equity
|
472,099
|
460,259
|
|
Total liabilities and
equity
|
$
611,196
|
$
605,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc.
|
|
|
|
Consolidated Statements of
Operations
|
|
|
|
(In thousands)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
Three Months Ended
|
Six Months Ended
|
|
|
June 30
|
June 30
|
|
|
2010
|
2009
|
2010
|
2009
|
|
Net sales
|
$
209,249
|
$
188,843
|
$
402,704
|
$
394,148
|
|
Cost of sales
|
162,571
|
145,935
|
309,884
|
307,529
|
|
Gross profit
|
46,678
|
42,908
|
92,820
|
86,619
|
|
Selling, general, administrative
& engineering expenses
|
30,824
|
31,607
|
63,542
|
63,034
|
|
Income from
operations
|
15,854
|
11,301
|
29,278
|
23,585
|
|
Interest expense
|
135
|
170
|
259
|
352
|
|
Other income, net of
expenses
|
122
|
810
|
610
|
775
|
|
Income before income
taxes
|
15,841
|
11,941
|
29,629
|
24,008
|
|
Income taxes
|
5,511
|
4,166
|
10,467
|
8,836
|
|
Net income
|
10,330
|
7,775
|
19,162
|
15,172
|
|
Net income (loss) attributable
to noncontrolling interest
|
22
|
26
|
60
|
(9)
|
|
Net income attributable to
controlling interest
|
$
10,308
|
$
7,749
|
$
19,102
|
$
15,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share
|
|
|
|
|
|
Net income attributable to
controlling interest
|
|
|
|
|
|
Basic
|
$
0.46
|
$
0.35
|
$
0.85
|
$
0.68
|
|
Diluted
|
$
0.45
|
$
0.34
|
$
0.84
|
$
0.67
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
Basic
|
22,507,078
|
22,435,037
|
22,490,431
|
22,432,804
|
|
Diluted
|
22,832,785
|
22,735,770
|
22,800,223
|
22,699,619
|
|
|
|
|
|
|
Astec Industries,
Inc.
|
|
Segment Revenues and
Profits
|
|
For the three months ended June
30, 2010 and 2009
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
Asphalt
Group
|
Aggregate and
Mining Group
|
Mobile Asphalt
Paving Group
|
Underground
Group
|
All Others
|
Total
|
|
2010 Revenues
|
65,362
|
67,000
|
47,231
|
13,636
|
16,020
|
209,249
|
|
2009 Revenues
|
69,578
|
55,452
|
36,859
|
17,145
|
9,809
|
188,843
|
|
Change $
|
(4,216)
|
11,548
|
10,372
|
(3,509)
|
6,211
|
20,406
|
|
Change %
|
(6.1%)
|
20.8%
|
28.1%
|
(20.5%)
|
63.3%
|
10.8%
|
|
|
|
|
|
|
|
|
|
2010 Gross Profit
|
14,961
|
15,199
|
12,233
|
868
|
3,417
|
46,678
|
|
2010 Gross Profit %
|
22.9%
|
22.7%
|
25.9%
|
6.4%
|
21.3%
|
22.3%
|
|
2009 Gross Profit
|
18,468
|
13,252
|
8,733
|
276
|
2,179
|
42,908
|
|
2009 Gross Profit %
|
26.5%
|
23.9%
|
23.7%
|
1.6%
|
22.2%
|
22.7%
|
|
Change
|
(3,507)
|
1,947
|
3,500
|
592
|
1,238
|
3,770
|
|
|
|
|
|
|
|
|
|
2010 Profit (Loss)
|
7,574
|
4,973
|
6,264
|
(1,901)
|
(6,069)
|
10,841
|
|
2009 Profit (Loss)
|
11,281
|
3,949
|
4,346
|
(4,241)
|
(6,978)
|
8,357
|
|
Change $
|
(3,707)
|
1,024
|
1,918
|
2,340
|
909
|
2,484
|
|
Change %
|
(32.9%)
|
25.9%
|
44.1%
|
55.2%
|
13.0%
|
29.7%
|
|
|
|
|
|
|
|
|
|
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 June
30
|
|
|
|
|
|
|
2010
|
2009
|
|
|
|
Total profit for all
segments
|
|
|
$
10,841
|
$
8,357
|
|
|
|
Net income attributable to
noncontrolling interest in subsidiary
|
(22)
|
(26)
|
|
|
|
Elimination of intersegment
profit
|
|
|
(511)
|
(582)
|
|
|
|
Net income attributable to
controlling interest
|
|
$
10,308
|
$
7,749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc.
|
|
Segment Revenues and
Profits
|
|
For the six months ended June
30, 2010 and 2009
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
Asphalt Group
|
Aggregate and
Mining Group
|
Mobile Asphalt
Paving Group
|
Underground
Group
|
All Others
|
Total
|
|
2010 Revenues
|
135,423
|
125,919
|
89,314
|
22,563
|
29,485
|
402,704
|
|
2009 Revenues
|
152,829
|
107,029
|
68,263
|
37,391
|
28,636
|
394,148
|
|
Change $
|
(17,406)
|
18,890
|
21,051
|
(14,828)
|
849
|
8,556
|
|
Change %
|
(11.4%)
|
17.6%
|
30.8%
|
(39.7%)
|
3.0%
|
2.2%
|
|
|
|
|
|
|
|
|
|
2010 Gross Profit
|
35,168
|
28,386
|
22,743
|
511
|
6,012
|
92,820
|
|
2010 Gross Profit %
|
26.0%
|
22.5%
|
25.5%
|
2.3%
|
20.4%
|
23.0%
|
|
2009 Gross Profit
|
39,091
|
24,394
|
15,353
|
3,035
|
4,746
|
86,619
|
|
2009 Gross Profit %
|
25.6%
|
22.8%
|
22.5%
|
8.1%
|
16.6%
|
22.0%
|
|
Change
|
(3,923)
|
3,992
|
7,390
|
(2,524)
|
1,266
|
6,201
|
|
|
|
|
|
|
|
|
|
2010 Profit (Loss)
|
20,369
|
7,795
|
11,475
|
(5,443)
|
(13,579)
|
20,617
|
|
2009 Profit (Loss)
|
23,280
|
5,721
|
6,351
|
(6,582)
|
(13,814)
|
14,956
|
|
Change $
|
(2,911)
|
2,074
|
5,124
|
1,139
|
235
|
5,661
|
|
Change %
|
(12.5%)
|
36.3%
|
80.7%
|
17.3%
|
1.7%
|
37.9%
|
|
|
|
|
|
|
|
|
|
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 six months ended June
30
|
|
|
|
|
2010
|
2009
|
|
Total profit for all
segments
|
|
|
$
20,617
|
$
14,956
|
|
Net (income) loss attributable
to noncontrolling interest in subsidiary
|
(60)
|
9
|
|
Recapture (elimination) of
intersegment profit
|
|
(1,455)
|
216
|
|
Net income attributable to
controlling interest
|
|
$
19,102
|
$
15,181
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc.
|
|
Backlog by Segment
|
|
June 30, 2010 and
2009
|
|
(in thousands)
|
|
(Unaudited)
|
|
|
Asphalt Group
|
Aggregate and
Mining Group
|
Mobile Asphalt
Paving Group
|
Underground Group
|
All Others
|
Total
|
|
2010 Backlog
|
66,201
|
48,612
|
11,189
|
7,865
|
5,825
|
139,692
|
|
2009 Backlog
|
54,181
|
65,734
|
1,886
|
7,500
|
4,283
|
133,584
|
|
Change $
|
12,020
|
(17,122)
|
9,303
|
365
|
1,542
|
6,108
|
|
Change %
|
22.2%
|
(26.0%)
|
493.3%
|
4.9%
|
36.0%
|
4.6%
|
|
|
|
|
|
|
|
|
SOURCE Astec Industries, Inc.