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
Group
|
Aggregate
and
Mining
Group
|
Mobile
Asphalt
Paving
Group
|
Underground
Group
|
All
Others
|
Total
|
|
|
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
Group
|
Aggregate
and
Mining
Group
|
Mobile
Asphalt
Paving
Group
|
Underground
Group
|
All
Others
|
Total
|
|
|
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
Group
|
Aggregate
and
Mining
Group
|
Mobile
Asphalt
Paving
Group
|
Underground
Group
|
All
Others
|
Total
|
|
|
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 31
|
Asphalt
Group
|
Aggregate
and
Mining
Group
|
Mobile
Asphalt
Paving
Group
|
Underground
Group
|
All
Others
|
Total
|
|
|
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 31
|
Asphalt
Group
|
Aggregate
and
Mining
Group
|
Mobile
Asphalt
Paving
Group
|
Underground
Group
|
All
Others
|
Total
|
|
|
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
|
Twelve
months ended December 31
|
|
|
2010
|
2009
|
Change
$
|
2010
|
2009
|
Change
$
|
|
|
Total profit for all segments
excluding impairment charges
|
$ 5,021
|
$ (1,075)
|
$ 6,096
|
$ 33,254
|
$ 17,505
|
$ 15,749
|
|
|
Net income attributable to
non-controlling interest in subsidiary
|
(48)
|
(22)
|
(26)
|
(142)
|
(38)
|
(104)
|
|
|
Recapture (elimination) of
intersegment profit
|
994
|
663
|
331
|
(682)
|
623
|
(1,305)
|
|
|
Net income (loss) attributable
to controlling interest excluding impairment
charges
|
5,967
|
(434)
|
6,401
|
32,430
|
18,090
|
14,340
|
|
|
Intangible asset impairment
charges, net of tax benefit of $2,014*
|
-
|
(15,022)
|
15,022
|
-
|
(15,022)
|
15,022
|
|
|
Net income (loss) attributable
to controlling interest
|
$ 5,967
|
$ (15,456)
|
$ 21,423
|
$ 32,430
|
$ 3,068
|
$ 29,362
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share:
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to controlling interest excluding impairment charges
|
|
|
|
|
|
|
|
|
Basic
|
$0.26
|
$
(0.02)
|
$
0.28
|
$ 1.44
|
$
0.81
|
$ 0.63
|
|
|
Diluted
|
$ 0.26
|
$ (0.02)
|
$ 0.28
|
$ 1.42
|
$ 0.80
|
$ 0.62
|
|
|
|
|
|
|
|
|
|
|
Net loss from impairment
charges
|
|
|
|
|
|
|
|
|
Basic
|
$
-
|
$ (0.67)
|
$ 0.67
|
$
-
|
$ (0.67)
|
$ 0.67
|
|
|
Diluted
|
$
-
|
$ (0.67)
|
$ 0.67
|
$
-
|
$ (0.66)
|
$ 0.66
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to controlling interest
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.26
|
$ (0.69)
|
$ 0.95
|
$ 1.44
|
$ 0.14
|
$ 1.30
|
|
|
Diluted
|
$ 0.26
|
$ (0.69)
|
$ 0.95
|
$ 1.42
|
$ 0.14
|
$ 1.28
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
* 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.