CHATTANOOGA, Tenn.,
Oct. 26, 2012 /PRNewswire/
-- Astec Industries, Inc. (Nasdaq: ASTE) today reported
results for their third quarter ended September 30, 2012. Net sales for the third
quarter of 2012 were $227.0 million
compared to $214.6 million for the third quarter of 2011, a 6%
increase. Pre-tax earnings for the third quarter of 2012 were
$10.1 million compared to
$9.3 million in the third quarter of
2011, an increase of 9%. Earnings for the third quarter of
2012 were $6.9 million or
$0.30 per diluted share compared to
earnings for the third quarter of 2011 of $7.7 million or $0.34 per diluted share, a decrease of
$0.04 or 12% per diluted
share.
Domestic sales increased 10% to $139.5
million for the third quarter of 2012 compared to
$127.3 million for the third quarter
of 2011. International sales were $87.6 million for the third quarter of 2012
compared to $87.3 million for the
third quarter of 2011.
Net sales for the first nine months of 2012 were $747.6 million compared to $692.6 million for the
first nine months of 2011, an 8% increase. Pre-tax earnings
for the first nine months of 2012 were $46.1
million, relatively unchanged from $46.2 million in the first nine months of
2011. Earnings for the first nine months of 2012 were
$29.5 million or $1.28 per diluted share compared to earnings for
the first nine months of 2011 of $32.0
million or $1.39 per diluted
share, a decrease of $0.11 or 8% per
diluted share.
Domestic sales increased 12% to $462.4
million for the first nine months of 2012 compared to
$414.2 million for the first nine
months of 2011. International sales were $285.2 million for the first nine months of 2012
compared to $278.3 million for the
first nine months of 2011, a 3% increase.
The Company's domestic backlog increased 8%, from $107.9 million at September 30, 2011 to $116.1 million at September 30, 2012. The international
backlog at September 30, 2012 was
$124.4 million, a slight increase
compared to the September 30, 2011
international backlog of $124.2
million. Total backlog increased 4% to $240.5 million at September 30, 2012 from $232.1 million September
30, 2011, respectively. 2011 backlog amounts have been
restated to reflect acquisitions made late in 2011.
Consolidated financial information for the quarter and nine
months ended September 30, 2012 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,
"While we were able to grow sales at 6% for the third quarter, our
gross margin remained flat. Our pre-tax earnings were up 9%
during the quarter but our after-tax earnings were impacted by the
lack of a research and development credit which was in effect in
2011 but has yet to be approved by Congress for 2012."
Dr. Brock continued, "Our customers continue to be reluctant to
spend money on capital investments due to the lack of work and
uncertainty in the economy. The delayed passage of the
Federal highway bill caused state transportation departments to
delay lettings until late in the construction season. In
addition, the uncertainty surrounding taxes, regulations and the
lack of general economic improvement continues to discourage
customers from upgrading and expanding their equipment
fleets. We see an opportunity for growth as the economy
rebounds over the next few years and the pent up demand for
equipment needs to be met."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 26, 2012, at 10:00
A.M. Eastern Time to review its September 30, 2012 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 Friday, November 9, 2012
by dialing (877) 660-6853, or (201) 612-7415 for international
callers, Account #286, Conference ID# 397799. A transcription
of the conference call will be made available under the Investor
Relations 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 manufacturing operations are divided
into four primary business segments: aggregate processing and
mining equipment; asphalt production equipment; mobile asphalt
paving 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
Company's financial performance in the fourth quarter of 2012, the
effects on the Company from its backlog, the Federal highway bill,
the uncertainty in the general economy, and the success of the
Company's acquisition strategy. 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, 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, tax rates and the impact of future
legislation thereon, 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, 2011.
|
|
|
Astec
Industries, Inc.
|
Consolidated Balance Sheets
|
(in
thousands)
|
(unaudited)
|
|
|
Sept
30
|
Sept
30
|
|
2012
|
2011
|
Assets
|
|
|
Current
assets
|
|
|
Cash and
cash
equivalents
|
$
35,564
|
$
51,737
|
Receivables, net
|
109,320
|
101,227
|
Inventories
|
340,982
|
290,453
|
Prepaid
expenses and other
|
26,241
|
28,702
|
Total
current assets
|
512,107
|
472,119
|
Property
and equipment, net
|
192,602
|
177,855
|
Other
assets
|
42,704
|
39,054
|
Total
assets
|
$
747,413
|
$
689,028
|
Liabilities and equity
|
|
|
Current
liabilities
|
|
|
Accounts
payable - trade
|
$
49,456
|
$
45,571
|
Other
accrued liabilities
|
103,956
|
92,005
|
Total
current liabilities
|
153,412
|
137,576
|
Other
non-current liabilities
|
33,421
|
29,877
|
Total
equity
|
560,580
|
521,575
|
Total
liabilities and equity
|
$
747,413
|
$
689,028
|
|
|
|
Astec
Industries, Inc.
|
|
|
Consolidated Statements of Income
|
|
|
(in
thousands, except per share data)
|
|
|
(unaudited)
|
|
|
|
|
|
|
Three
Months Ended
|
Nine
Months Ended
|
|
Sept
30
|
Sept
30
|
|
2012
|
2011
|
2012
|
2011
|
Net
sales
|
$
227,041
|
$
214,624
|
$
747,554
|
$
692,569
|
Cost of
sales
|
177,598
|
168,224
|
581,234
|
529,495
|
Gross
profit
|
49,443
|
46,400
|
166,320
|
163,074
|
Selling,
general, administrative & engineering expenses
|
40,003
|
37,362
|
122,266
|
115,640
|
Asset
impairment charge
|
-
|
-
|
-
|
2,170
|
Income
from operations
|
9,440
|
9,038
|
44,054
|
45,264
|
Interest
expense
|
152
|
46
|
242
|
140
|
Other
income, net of expenses
|
856
|
264
|
2,333
|
1,037
|
Income
before income taxes
|
10,144
|
9,256
|
46,145
|
46,161
|
Income
taxes
|
3,244
|
1,492
|
16,558
|
14,134
|
Net
income
|
6,900
|
7,764
|
29,587
|
32,027
|
Net income
attributable to noncontrolling interest
|
48
|
41
|
124
|
74
|
Net income
attributable to controlling interest
|
$
6,852
|
$
7,723
|
$
29,463
|
$
31,953
|
|
|
|
|
|
|
|
|
|
|
Earnings
per Common Share
|
|
|
|
|
Net income
attributable to controlling interest
|
|
|
|
|
Basic
|
$
0.30
|
$
0.34
|
$
1.30
|
$
1.42
|
Diluted
|
$
0.30
|
$
0.34
|
$
1.28
|
$
1.39
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
|
|
|
|
Basic
|
22,691
|
22,599
|
22,675
|
22,580
|
Diluted
|
23,053
|
23,007
|
23,049
|
22,973
|
|
|
|
|
|
Astec
Industries, Inc.
|
Segment
Revenues and Profits
|
For the
three months ended September 30, 2012 and 2011
|
(in
thousands)
|
(unaudited)
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground Group
|
All
Others
|
Total
|
2012
Revenues
|
46,797
|
91,860
|
36,618
|
29,179
|
22,587
|
227,041
|
2011
Revenues
|
50,458
|
83,232
|
39,143
|
23,769
|
18,022
|
214,624
|
Change
$
|
(3,661)
|
8,628
|
(2,525)
|
5,410
|
4,565
|
12,417
|
Change
%
|
(7.3%)
|
10.4%
|
(6.5%)
|
22.8%
|
25.3%
|
5.8%
|
|
|
|
|
|
|
|
2012 Gross
Profit
|
9,563
|
22,957
|
7,575
|
4,929
|
4,419
|
49,443
|
2012 Gross
Profit %
|
20.4%
|
25.0%
|
20.7%
|
16.9%
|
19.6%
|
21.8%
|
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%
|
Change
|
1,055
|
2,275
|
(2,516)
|
849
|
1,380
|
3,043
|
|
|
|
|
|
|
|
2012
Profit (Loss)
|
2,248
|
8,697
|
1,631
|
518
|
(5,545)
|
7,549
|
2011
Profit (Loss)
|
500
|
7,764
|
4,976
|
511
|
(4,062)
|
9,689
|
Change
$
|
1,748
|
933
|
(3,345)
|
7
|
(1,483)
|
(2,140)
|
Change
%
|
349.6%
|
12.0%
|
(67.2%)
|
1.4%
|
(36.5%)
|
(22.1%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
2012
|
2011
|
Change
$
|
|
Total
profit for all segments
|
$
7,549
|
$
9,689
|
$
(2,140)
|
|
Net income
attributable to non-controlling interest in subsidiary
|
(48)
|
(41)
|
(7)
|
|
Elimination of intersegment profit
|
(649)
|
(1,925)
|
1,276
|
|
Net income
attributable to controlling interest
|
$
6,852
|
$
7,723
|
$
(871)
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
Segment
Revenues and Profits
|
For the
nine months ended September 30, 2012 and 2011
|
(in
thousands)
|
(unaudited)
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground Group
|
All
Others
|
Total
|
2012
Revenues
|
174,898
|
278,024
|
123,770
|
100,738
|
70,124
|
747,554
|
2011
Revenues
|
192,396
|
248,647
|
142,565
|
58,524
|
50,437
|
692,569
|
Change
$
|
(17,498)
|
29,377
|
(18,795)
|
42,214
|
19,687
|
54,985
|
Change
%
|
(9.1%)
|
11.8%
|
(13.2%)
|
72.1%
|
39.0%
|
7.9%
|
|
|
|
|
|
|
|
2012 Gross
Profit
|
37,735
|
72,512
|
28,331
|
15,285
|
12,457
|
166,320
|
2012 Gross
Profit %
|
21.6%
|
26.1%
|
22.9%
|
15.2%
|
17.8%
|
22.2%
|
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%
|
Change
|
(6,751)
|
10,674
|
(10,827)
|
7,148
|
3,002
|
3,246
|
|
|
|
|
|
|
|
2012
Profit (Loss)
|
13,541
|
29,836
|
9,634
|
1,001
|
(23,416)
|
30,596
|
2011
Profit (Loss)
|
20,421
|
23,114
|
20,819
|
(3,166)
|
(26,126)
|
35,062
|
Change
$
|
(6,880)
|
6,722
|
(11,185)
|
4,167
|
2,710
|
(4,466)
|
Change
%
|
(33.7%)
|
29.1%
|
(53.7%)
|
131.6%
|
10.4%
|
(12.7%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 net income attributable to controlling
interest is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended September 30
|
|
|
2012
|
2011
|
Change
$
|
|
Total
profit for all segments
|
$
30,596
|
$
35,062
|
$
(4,466)
|
|
Net income
attributable to non-controlling interest in subsidiary
|
(124)
|
(74)
|
(50)
|
|
Elimination of intersegment profit
|
(1,009)
|
(3,035)
|
2,026
|
|
Net income
attributable to controlling interest
|
$
29,463
|
$
31,953
|
$
(2,490)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc.
|
Backlog by
Segment
|
September
30, 2012 and 2011
|
(in
thousands)
|
(Unaudited)
|
|
Asphalt
Group
|
Aggregate
and Mining Group
|
Mobile
Asphalt Paving Group
|
Underground Group
|
All
Others
|
Total
|
2012
Backlog
|
102,944
|
82,648
|
2,828
|
30,580
|
21,505
|
240,505
|
2011
Backlog
|
94,784
|
84,848
|
5,030
|
26,338
|
21,070
|
232,070
|
Change
$
|
8,160
|
(2,200)
|
(2,202)
|
4,242
|
435
|
8,435
|
Change
%
|
8.6%
|
(2.6%)
|
(43.8%)
|
16.1%
|
2.1%
|
3.6%
|
SOURCE Astec Industries, Inc.