CHATTANOOGA, Tenn.,
Oct. 25, 2011 /PRNewswire/ -- Astec
Industries, Inc. (Nasdaq: ASTE) today reported results for its
third quarter ended September 30,
2011.
Revenues for the third quarter of 2011 were $214.6 million compared with $177.9 million for
the third quarter of 2010 for a 20.6% increase. Domestic
sales were $127.3 million during the
third quarter of 2011 compared to $98.6
million during the third quarter of 2010 for an increase of
29.1%. International sales were $87.3
million during the third quarter of 2011 compared to
$79.3 million during the third
quarter of 2010 for an increase of 10.1%. The Company
reported net income attributable to controlling interest of
$7.7 million for the third quarter of
2011 compared to net income attributable to controlling interest of
$7.4 million for the third quarter of
2010 for an increase of 4.1%. Net income attributable to
controlling interest for the third quarter of 2011 was $0.34 per diluted share compared to $0.32 per diluted share for the third quarter of
2010 for a 6.3% increase.
The Company's backlog at September 30,
2011 was $221.5 million
compared to $145.6 million at
September 30, 2010 for a 52.1%
increase.
Consolidated financial statements for the third quarter ended
September 30, 2011 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, "In
the third quarter, we were busy with several business development
activities and initiatives. We completed a $3 million acquisition in Germany, added new facilities in Australia and Germany totaling approximately $7 million, signed a manufacturing joint venture
agreement in Brazil which will
result in an initial investment of $12
million and completed the GEFCO and STECO acquisition in
early October for $30.8 million.
These activities represent an investment in our future
business and we look forward to their growth and success.
We were pleased with our results for the third quarter, despite
a number of charges that negatively affected net income during the
quarter. We incurred $3.3
million or $0.10 per diluted
share in R&D related expenses. These expenses related to
further development of the prototype wood pellet plant and pellet
press, improvements to our crushing line of equipment and concrete
plants, development of a line of hot water heaters and pump
trailers for oil and natural gas fracking operations and
development of a new Peterson micro-chipper. We also had an
unusually high volume of intercompany sales this quarter which
resulted in $1.9 million or
$.06 per diluted share of profit
being deferred until future quarters. The majority of these
sales were to our subsidiary in Australia for distribution into that
country."
Dr. Brock continued, "In late September we were awarded a
contract to supply asphalt plants to the U.S. Army that could
amount to $89 million in sales over
the next 5 years. As these contingent sales become firm
orders they will be reflected in our backlog. Considering the
overall condition of the domestic economy and the uncertainty in
Washington, we continue to be
pleased with the company's performance. We believe during the
next six months we may see a new, enhanced six-year highway bill
which should give more certainty to our domestic customers and
hopefully we will see continued improvement in our domestic
business."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 25, 2011 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: 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 Sunday, November 6, 2011,
by dialing (877) 660-6853, or (201) 612-7415 for international
callers, Account #286, Conference ID# 380997. 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
primary business segments: asphalt production equipment,
mobile asphalt paving equipment, aggregate processing and mining
equipment, and underground boring, directional drilling and
trenching equipment. Additionally, the Other Group contains
one subsidiary that manufactures equipment used for wood processing
and recycling and one that is a company-owned dealership located in
Australia.
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 effects
on the Company from its backlog, the results of the Company's
acquisition and business development strategy, results of the
Company's R&D efforts, effects of the U.S. Army contract for
asphalt plants, and the status of the multi-year highway bill and
investigation of potential acquisitions and divestitures.
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 effect 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, 2010.
Astec
Industries, Inc.
|
|
|
|
Consolidated
Balance Sheets
|
|
|
|
(in
thousands)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Sept
30
|
Sept
30
|
|
|
|
|
2011
|
2010
|
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Cash and cash
equivalents
|
$
51,737
|
$
81,366
|
|
|
|
Receivables, net
|
101,227
|
88,266
|
|
|
|
Inventories
|
290,453
|
242,137
|
|
|
|
Prepaid expenses and
other
|
28,702
|
16,452
|
|
|
|
Total current assets
|
472,119
|
428,221
|
|
|
|
Property and equipment,
net
|
177,855
|
168,414
|
|
|
|
Other assets
|
39,054
|
33,698
|
|
|
|
Total assets
|
$
689,028
|
$
630,333
|
|
|
|
Liabilities
and equity
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable -
trade
|
$
45,571
|
$
39,382
|
|
|
|
Other accrued
liabilities
|
92,005
|
79,619
|
|
|
|
Total current
liabilities
|
137,576
|
119,001
|
|
|
|
Other non-current
liabilities
|
29,877
|
28,094
|
|
|
|
Total equity
|
521,575
|
483,238
|
|
|
|
Total liabilities and
equity
|
$
689,028
|
$
630,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
|
|
|
Consolidated
Statements of Income
|
|
|
|
(in
thousands, except shares and share data)
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Nine Months
Ended
|
|
|
Sept
30
|
Sept
30
|
|
|
2011
|
2010
|
2011
|
2010
|
|
Net sales
|
$
214,624
|
$
177,853
|
$
692,569
|
$
580,557
|
|
Cost of sales
|
168,224
|
135,913
|
529,495
|
445,797
|
|
Gross profit
|
46,400
|
41,940
|
163,074
|
134,760
|
|
Selling, general, administrative
& engineering expenses
|
37,362
|
31,808
|
115,640
|
95,351
|
|
Asset impairment
charge
|
-
|
-
|
2,170
|
-
|
|
Income from
operations
|
9,038
|
10,132
|
45,264
|
39,409
|
|
Interest expense
|
46
|
30
|
140
|
289
|
|
Other income, net of
expenses
|
264
|
492
|
1,037
|
1,103
|
|
Income before income
taxes
|
9,256
|
10,594
|
46,161
|
40,223
|
|
Income taxes
|
1,492
|
3,198
|
14,134
|
13,665
|
|
Net income
|
7,764
|
7,396
|
32,027
|
26,558
|
|
Net income attributable to
noncontrolling interest
|
41
|
34
|
74
|
94
|
|
Net income attributable to
controlling interest
|
$
7,723
|
$
7,362
|
$
31,953
|
$
26,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per Common
Share
|
|
|
|
|
|
Net income attributable to
controlling interest
|
|
|
|
|
|
Basic
|
$
0.34
|
$
0.33
|
$
1.42
|
$
1.18
|
|
Diluted
|
$
0.34
|
$
0.32
|
$
1.39
|
$
1.16
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
Basic
|
22,598,642
|
22,533,606
|
22,580,443
|
22,504,876
|
|
Diluted
|
23,006,530
|
22,843,300
|
22,972,758
|
22,814,634
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
|
Segment
Revenues and Profits
|
|
For the
three months ended September 30, 2011 and 2010
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground
Group
|
All
Others
|
Total
|
|
2011
Revenues
|
50,458
|
83,232
|
39,143
|
23,769
|
18,022
|
214,624
|
|
2010
Revenues
|
45,478
|
60,263
|
36,681
|
19,220
|
16,211
|
177,853
|
|
Change
$
|
4,980
|
22,969
|
2,462
|
4,549
|
1,811
|
36,771
|
|
Change
%
|
11.0%
|
38.1%
|
6.7%
|
23.7%
|
11.2%
|
20.7%
|
|
|
|
|
|
|
|
|
|
2011 Gross
Profit
|
8,508
|
20,682
|
10,091
|
4,080
|
3,039
|
46,400
|
|
2011 Gross
Profit %
|
16.9%
|
24.8%
|
25.8%
|
17.2%
|
16.9%
|
21.6%
|
|
2010 Gross
Profit
|
11,001
|
14,839
|
10,395
|
2,007
|
3,698
|
41,940
|
|
2010 Gross
Profit %
|
24.2%
|
24.6%
|
28.3%
|
10.4%
|
22.8%
|
23.6%
|
|
Change
|
(2,493)
|
5,843
|
(304)
|
2,073
|
(659)
|
4,460
|
|
|
|
|
|
|
|
|
|
2011 Profit
(Loss)
|
500
|
7,764
|
4,976
|
511
|
(4,062)
|
9,689
|
|
2010 Profit
(Loss)
|
4,041
|
4,437
|
5,188
|
(1,569)
|
(4,480)
|
7,617
|
|
Change
$
|
(3,541)
|
3,327
|
(212)
|
2,080
|
418
|
2,072
|
|
Change
%
|
(87.6%)
|
75.0%
|
(4.1%)
|
132.6%
|
9.3%
|
27.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30
|
|
|
|
2011
|
2010
|
Change
$
|
|
|
Total profit for all
segments
|
$
9,689
|
$
7,617
|
$ 2,072
|
|
|
Net income attributable to
non-controlling interest in subsidiary
|
(41)
|
(34)
|
(7)
|
|
|
Elimination of intersegment
profit
|
(1,925)
|
(221)
|
(1,704)
|
|
|
Net income attributable to
controlling interest
|
$
7,723
|
$
7,362
|
$
361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
|
Segment
Revenues and Profits
|
|
For the nine
months ended September 30, 2011 and 2010
|
|
(in
thousands)
|
|
(unaudited)
|
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground
Group
|
All
Others
|
Total
|
|
2011
Revenues
|
192,396
|
248,647
|
142,565
|
58,524
|
50,437
|
692,569
|
|
2010
Revenues
|
180,901
|
186,182
|
125,995
|
41,783
|
45,696
|
580,557
|
|
Change
$
|
11,495
|
62,465
|
16,570
|
16,741
|
4,741
|
112,012
|
|
Change
%
|
6.4%
|
33.6%
|
13.2%
|
40.1%
|
10.4%
|
19.3%
|
|
|
|
|
|
|
|
|
|
2011 Gross
Profit
|
44,486
|
61,838
|
39,158
|
8,137
|
9,455
|
163,074
|
|
2011 Gross
Profit %
|
23.1%
|
24.9%
|
27.5%
|
13.9%
|
18.7%
|
23.5%
|
|
2010 Gross
Profit
|
46,169
|
43,225
|
33,138
|
2,519
|
9,709
|
134,760
|
|
2010 Gross
Profit %
|
25.5%
|
23.2%
|
26.3%
|
6.0%
|
21.2%
|
23.2%
|
|
Change
|
(1,683)
|
18,613
|
6,020
|
5,618
|
(254)
|
28,314
|
|
|
|
|
|
|
|
|
|
2011 Profit
(Loss)
|
20,421
|
23,114
|
20,819
|
(3,166)
|
(26,126)
|
35,062
|
|
2010 Profit
(Loss)
|
24,410
|
12,232
|
16,662
|
(7,012)
|
(18,058)
|
28,234
|
|
Change
$
|
(3,989)
|
10,882
|
4,157
|
3,846
|
(8,068)
|
6,828
|
|
Change
%
|
(16.3%)
|
89.0%
|
24.9%
|
54.8%
|
(44.7%)
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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):
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months
ended September 30
|
|
|
|
2011
|
2010
|
Change
$
|
|
|
Total profit for all
segments
|
$
35,062
|
$
28,234
|
$ 6,828
|
|
|
Net income attributable to
non-controlling interest in subsidiary
|
(74)
|
(94)
|
20
|
|
|
Elimination of intersegment
profit
|
(3,035)
|
(1,676)
|
(1,359)
|
|
|
Net income attributable to
controlling interest
|
$
31,953
|
$
26,464
|
$ 5,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
|
Backlog by
Segment
|
|
September
30, 2011 and 2010
|
|
(in
thousands)
|
|
(Unaudited)
|
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground
Group
|
All
Others
|
Total
|
|
2011
Backlog
|
94,784
|
84,848
|
5,030
|
15,741
|
21,070
|
221,473
|
|
2010
Backlog
|
74,034
|
55,367
|
6,141
|
4,290
|
5,811
|
145,643
|
|
Change
$
|
20,750
|
29,481
|
(1,111)
|
11,451
|
15,259
|
75,830
|
|
Change
%
|
28.0%
|
53.2%
|
(18.1%)
|
266.9%
|
262.6%
|
52.1%
|
|
|
|
|
|
|
|
|
SOURCE Astec Industries, Inc.