Astec Industries, Inc. (Nasdaq: ASTE) today reported results for
its third quarter ended September 30, 2019.
Net sales were relatively flat at $255.8 million
compared to $256.6 million for the third quarter of 2018. Domestic
sales decreased 2.3% to $189.8 million from $194.2 million a year
ago while international sales increased 5.7% to $66.0 million from
$62.4 million in the third quarter of 2018.
Net income attributable to controlling interest
was $3.0 million or $0.13 per diluted share, compared to net income
attributable to controlling interest of $7.0 million or $0.30 per
diluted share for the third quarter of 2018, a decrease of
57.0%.
Commenting on the quarterly results, Barry
Ruffalo, Chief Executive Officer, stated, “Our results for the
quarter highlight our ability to navigate effectively through a
challenging environment. Despite margin compression due to
softer market conditions, I am confident we are taking the steps
necessary to align production with demand and position ourselves
for profitable growth over the long-term. I had the opportunity to
meet with our regional leaders, facilities managers, and many of
our employees and customers around the world during the quarter,
and am excited about the opportunities that lie ahead of us.
While we are still in the process of developing the details of our
strategic path forward, I am excited to introduce the pillars of
our aligned strategy for profitable growth – Simplify, Focus and
Grow. I look forward to sharing further details of our new
strategy in subsequent communications.”
Backlog as of September 30, 2019 was $243.9
million, a decrease of $64.7 million or 21.0% compared to the
September 30, 2018 backlog of $308.6 million. Domestic
backlog decreased 29.2% to $158.0 million at September 30, 2019
from $223.2 million at September 30, 2018. International backlog at
September 30, 2019 remained relatively flat at $85.8 million
compared to $85.4 million at September 30, 2018.
Commenting on backlog at quarter end, Mr.
Ruffalo continued, “We are actively aligning the business to meet
the current demand. The implementation of our Sales and
Operations Planning process will help us navigate changing markets
and our international strategy will expand our opportunities to
accelerate revenue growth.”
Consolidated financial information for the third
quarter and nine months ended September 30, 2019 and additional
information related to segment revenues and profits are attached as
addenda to this press release.
Investor Conference Call and Web
Simulcast
Astec will conduct a conference call and live
webcast today, October 29, 2019, at 10:00 A.M. Eastern Time, to
review its third quarter and nine-month results as well as current
business conditions. The number to call for this interactive
teleconference is (877) 407-9210 (at least 10 minutes prior to the
scheduled time for the call). International callers should dial
(201) 689-8049. You may also access a live webcast of the
call by visiting
https://www.investornetwork.com/event/presentation/54354. You
will need to give your name and company affiliation and reference
Astec Industries. An archived webcast will be available for
ninety days at www.astecindustries.com.
A replay of the conference call will be
available through November 11, 2019 by dialing (877) 481-4010, or
(919) 882-2331 for international callers, Conference ID #54354. A
transcript 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.,
(www.astecindustries.com), is a manufacturer of specialized
equipment for asphalt road building; aggregate processing; oil, gas
and water well drilling and concrete production. Astec's
manufacturing operations are divided into three primary business
segments: road building, (Infrastructure Group); aggregate
processing and mining equipment (Aggregate and Mining Group); and
equipment for the extraction and production of fuels and water
drilling equipment (Energy Group).
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 (i) market conditions, (ii) efforts to
align production with demand, (iii) implementing a Sales and
Operations Planning process, and (iv) its backlog activity. 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, oil, gas and liquid asphalt prices, rising steel prices,
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,
2018.
For Additional Information Contact:
Steve Anderson Vice President, Director of Investor
Relations & Corporate Secretary Phone: (423)
899-5898 Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
Astec
Industries, Inc. |
|
|
Condensed
Consolidated Balance Sheets |
|
|
(in
thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
September 30 |
September 30 |
|
|
|
|
2019 |
|
|
2018 |
|
|
|
Assets |
|
|
|
|
Current assets |
|
|
|
|
Cash and cash equivalents |
$ |
26,289 |
|
$ |
25,674 |
|
|
|
Investments |
|
1,103 |
|
|
2,432 |
|
|
|
Receivables, net |
|
114,073 |
|
|
127,523 |
|
|
|
Inventories |
|
356,889 |
|
|
429,220 |
|
|
|
Prepaid expenses and other |
|
31,530 |
|
|
39,513 |
|
|
|
Total current assets |
|
529,884 |
|
|
624,362 |
|
|
|
Property and equipment, net |
|
190,545 |
|
|
187,903 |
|
|
|
Other assets |
|
95,240 |
|
|
91,199 |
|
|
|
Total assets |
$ |
815,669 |
|
$ |
903,464 |
|
|
|
Liabilities and equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable - trade |
$ |
59,886 |
|
$ |
74,419 |
|
|
|
Other current liabilities |
|
113,195 |
|
|
132,534 |
|
|
|
Total current liabilities |
|
173,081 |
|
|
206,953 |
|
|
|
Long-term debt, less current maturities |
|
717 |
|
|
26,506 |
|
|
|
Non-current liabilities |
|
24,287 |
|
|
23,731 |
|
|
|
Total equity |
|
617,584 |
|
|
646,274 |
|
|
|
Total liabilities and equity |
$ |
815,669 |
|
$ |
903,464 |
|
|
|
|
|
|
|
|
|
Astec
Industries, Inc. |
Condensed
Consolidated Statements of Operations |
(in
thousands, except per share data) |
(unaudited) |
|
|
|
|
Three Months Ended |
Nine Months Ended |
|
September 30 |
September 30 |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
Net sales |
$ |
255,807 |
|
$ |
256,613 |
|
$ |
886,389 |
|
$ |
854,595 |
|
Cost of sales |
|
203,947 |
|
|
198,329 |
|
|
674,362 |
|
|
717,197 |
|
Gross profit |
|
51,860 |
|
|
58,284 |
|
|
212,027 |
|
|
137,398 |
|
Selling, general, administrative & engineering expenses |
|
47,643 |
|
|
51,054 |
|
|
158,594 |
|
|
154,396 |
|
Restructuring charges |
|
875 |
|
|
- |
|
|
1,431 |
|
|
- |
|
Income (loss) from operations |
|
3,342 |
|
|
7,230 |
|
|
52,002 |
|
|
(16,998 |
) |
Interest expense |
|
(167 |
) |
|
(170 |
) |
|
(1,299 |
) |
|
(488 |
) |
Other |
|
467 |
|
|
115 |
|
|
1,379 |
|
|
1,774 |
|
Income (loss) before income taxes |
|
3,642 |
|
|
7,175 |
|
|
52,082 |
|
|
(15,712 |
) |
Income tax expense (benefit) |
|
632 |
|
|
180 |
|
|
11,420 |
|
|
(2,301 |
) |
Net income (loss) attributable to controlling interest |
$ |
3,010 |
|
$ |
6,995 |
|
$ |
40,662 |
|
$ |
(13,411 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings
(loss) per Common Share |
|
|
|
|
Net income
(loss) attributable to controlling interest |
|
|
|
|
Basic |
$ |
0.13 |
|
$ |
0.31 |
|
$ |
1.81 |
|
$ |
(0.58 |
) |
Diluted |
$ |
0.13 |
|
$ |
0.30 |
|
$ |
1.79 |
|
$ |
(0.58 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding |
|
|
|
|
Basic |
|
22,523 |
|
|
22,923 |
|
|
22,510 |
|
|
23,009 |
|
Diluted |
|
22,685 |
|
|
23,084 |
|
|
22,666 |
|
|
23,009 |
|
|
|
|
|
|
Astec Industries,
Inc. |
|
|
Segment Revenues and
Profit (Loss) |
|
|
For the three months
ended September 30, 2019 and 2018 |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
|
2019 Revenues |
88,219 |
|
|
99,617 |
|
|
67,971 |
|
|
- |
|
255,807 |
|
|
|
2018 Revenues |
87,063 |
|
|
101,735 |
|
|
67,815 |
|
|
- |
|
256,613 |
|
|
|
Change $ |
1,156 |
|
|
(2,118 |
) |
|
156 |
|
|
- |
|
(806 |
) |
|
|
Change % |
1.3% |
|
|
(2.1% |
) |
|
0.2% |
|
|
- |
|
(0.3% |
) |
|
|
|
|
|
|
|
|
|
|
2019 Gross Profit |
15,406 |
|
|
20,837 |
|
|
15,541 |
|
|
76 |
|
51,860 |
|
|
|
2019 Gross Profit % |
17.5% |
|
|
20.9% |
|
|
22.9% |
|
|
- |
|
20.3% |
|
|
|
2018 Gross Profit |
18,642 |
|
|
24,294 |
|
|
15,282 |
|
|
66 |
|
58,284 |
|
|
|
2018 Gross Profit % |
21.4% |
|
|
23.9% |
|
|
22.5% |
|
|
- |
|
22.7% |
|
|
|
Change |
(3,236 |
) |
|
(3,457 |
) |
|
259 |
|
|
10 |
|
(6,424 |
) |
|
|
|
|
|
|
|
|
|
|
2019 Profit (Loss) |
(419 |
) |
|
5,803 |
|
|
5,093 |
|
|
(7,732 |
) |
2,745 |
|
|
|
2018 Profit (Loss) |
4,761 |
|
|
9,011 |
|
|
3,318 |
|
|
(9,778 |
) |
7,312 |
|
|
|
Change $ |
(5,180 |
) |
|
(3,208 |
) |
|
1,775 |
|
|
2,046 |
|
(4,567 |
) |
|
|
Change % |
(108.8% |
) |
|
(35.6% |
) |
|
53.5% |
|
|
20.9% |
|
(62.5% |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues are
reported net of intersegment revenues. Segment gross profit (loss)
is net of profit on intersegment |
|
|
revenues. A
reconciliation of total segment profit (loss) to the Company's net
income (loss) attributable to controlling interest is as follows
(in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30 |
|
|
|
|
|
|
2019 |
|
|
2018 |
|
Change $ |
|
|
|
Total profit for all segments |
$ |
2,745 |
|
$ |
7,312 |
|
$ |
(4,567 |
) |
|
|
|
Recapture (elimination) of intersegment profit |
|
211 |
|
|
(410 |
) |
|
621 |
|
|
|
|
Net loss attributable to non-controlling interest |
|
54 |
|
|
93 |
|
|
(39 |
) |
|
|
|
Net income attributable to controlling interest |
$ |
3,010 |
|
$ |
6,995 |
|
$ |
(3,985 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc. |
|
|
Segment Revenues and
Profit (Loss) |
|
|
For the nine months
ended September 30, 2019 and 2018 |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate |
Total |
|
|
2019 Revenues |
376,448 |
|
|
312,985 |
|
|
196,956 |
|
|
- |
|
886,389 |
|
|
|
2018 Revenues |
317,359 |
|
|
337,100 |
|
|
200,136 |
|
|
- |
|
854,595 |
|
|
|
Change $ |
59,089 |
|
|
(24,115 |
) |
|
(3,180 |
) |
|
- |
|
31,794 |
|
|
|
Change % |
18.6% |
|
|
(7.2% |
) |
|
(1.6% |
) |
|
- |
|
3.7% |
|
|
|
|
|
|
|
|
|
|
|
2019 Gross Profit |
93,792 |
|
|
71,876 |
|
|
46,207 |
|
|
152 |
|
212,027 |
|
|
|
2019 Gross Profit % |
24.9% |
|
|
23.0% |
|
|
23.5% |
|
|
- |
|
23.9% |
|
|
|
2018 Gross Profit |
4,105 |
|
|
82,625 |
|
|
50,376 |
|
|
292 |
|
137,398 |
|
|
|
2018 Gross Profit % |
1.3% |
|
|
24.5% |
|
|
25.2% |
|
|
- |
|
16.1% |
|
|
|
Change |
89,687 |
|
|
(10,749 |
) |
|
(4,169 |
) |
|
(140 |
) |
74,629 |
|
|
|
|
|
|
|
|
|
|
|
2019 Profit (Loss) |
39,264 |
|
|
22,969 |
|
|
11,625 |
|
|
(34,422 |
) |
39,436 |
|
|
|
2018 Profit (Loss) |
(43,121 |
) |
|
34,669 |
|
|
16,406 |
|
|
(20,428 |
) |
(12,474 |
) |
|
|
Change $ |
82,385 |
|
|
(11,700 |
) |
|
(4,781 |
) |
|
(13,994 |
) |
51,910 |
|
|
|
Change % |
191.1% |
|
|
(33.7% |
) |
|
(29.1% |
) |
|
(68.5% |
) |
416.1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment revenues are
reported net of intersegment revenues. Segment gross profit (loss)
is net of profit on intersegment |
|
|
revenues. A
reconciliation of total segment profit (loss) to the Company's net
income (loss) attributable to controlling interest is as follows
(in thousands): |
|
|
|
|
|
|
|
|
|
|
|
Nine months ended September 30 |
|
|
|
|
|
|
2019 |
|
|
2018 |
|
Change $ |
|
|
|
Total profit (loss) for all segments |
$ |
39,436 |
|
$ |
(12,474 |
) |
$ |
51,910 |
|
|
|
|
Recapture (elimination) of intersegment profit |
|
1,099 |
|
|
(1,174 |
) |
|
2,273 |
|
|
|
|
Net loss attributable to non-controlling interest |
|
127 |
|
|
237 |
|
|
(110 |
) |
|
|
|
Net income
(loss) attributable to controlling interest |
|
$ |
40,662 |
|
$ |
(13,411 |
) |
$ |
54,073 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries,
Inc. |
|
|
Backlog by
Segment |
|
|
September 30, 2019
and 2018 |
|
|
(in thousands) |
|
|
(unaudited) |
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
|
2019 Backlog |
114,980 |
|
|
76,129 |
|
|
52,779 |
|
|
243,888 |
|
|
|
|
2018 Backlog |
130,257 |
|
|
103,790 |
|
|
74,535 |
|
|
308,582 |
|
|
|
|
Change $ |
(15,277 |
) |
|
(27,661 |
) |
|
(21,756 |
) |
|
(64,694 |
) |
|
|
|
Change % |
(11.7% |
) |
|
(26.7% |
) |
|
(29.2% |
) |
|
(21.0% |
) |
|
|
|
|
|
|
|
|
|
|
|
GLOSSARY
In its earnings release, Astec refers to various
GAAP (U.S. generally accepted accounting principles) and non-GAAP
financial measures. These non-GAAP measures may not be
comparable to similarly titled measures being disclosed by other
companies. Non-GAAP financial measures should be considered
in addition to, and not in lieu of, GAAP financial measures.
Nonetheless, this non-GAAP information can be useful in
understanding the Company’s operating results and the performance
of its core businesses.
The amounts described below are unaudited,
reported in thousands of U.S. dollars (except share data), and as
of or for the periods indicated.
Q3 2019 |
As Reported (GAAP) |
Sale of Pellet Plant (1) |
Restructuring Charges |
As Adjusted (Non-GAAP) |
Net Sales |
255,807 |
|
- |
- |
|
255,807 |
Domestic Sales |
189,783 |
|
- |
- |
|
189,783 |
GM |
51,860 |
|
- |
- |
|
51,860 |
GM% |
20.3% |
|
- |
- |
|
20.3% |
Op Income (Loss) |
3,342 |
|
- |
(875 |
) |
4,217 |
Income Tax Expense (Benefit)
(2) |
632 |
|
- |
(132 |
) |
764 |
Net (Loss) Income |
3,010 |
|
- |
(743 |
) |
3,753 |
EPS |
0.13 |
|
- |
(0.04 |
) |
0.17 |
EBITDA |
9,869 |
|
- |
(875 |
) |
10,744 |
|
|
|
|
|
Q3 YTD
2019 |
|
|
|
|
Net Sales |
886,389 |
|
20,000 |
- |
|
866,389 |
Domestic Sales |
698,825 |
|
20,000 |
- |
|
678,825 |
GM |
212,027 |
|
20,000 |
- |
|
192,027 |
GM% |
23.9% |
|
- |
- |
|
22.2% |
Op Income (Loss) |
52,002 |
|
20,000 |
(1,431 |
) |
33,433 |
Income Tax Expense (Benefit)
(2) |
11,421 |
|
4,731 |
(132 |
) |
6,822 |
Net Income (Loss) |
40,662 |
|
15,269 |
(1,299 |
) |
26,692 |
EPS |
1.79 |
|
0.67 |
(0.06 |
) |
1.18 |
EBITDA |
71,936 |
|
20,000 |
(1,431 |
) |
53,367 |
(1) Georgia pellet plant written down
to zero value at 12/31/18 was ultimately sold in 2019
(2) Tax effect on adjustments is
calculated using the applicable jurisdictional blended tax rate
Q3
2018 |
As Reported (GAAP) |
Pellet Plant Activity |
Restructuring Charges |
As Adjusted (Non-GAAP) |
Net Sales |
256,613 |
|
- |
|
- |
256,613 |
Domestic
Sales |
194,166 |
|
- |
|
- |
194,166 |
GM |
58,284 |
|
- |
|
- |
58,284 |
GM% |
22.7% |
|
- |
|
- |
22.7% |
Op Income |
7,230 |
|
- |
|
- |
7,230 |
Income Tax Expense
(Benefit) (1) |
180 |
|
- |
|
- |
180 |
Net
Income |
6,995 |
|
- |
|
- |
6,995 |
EPS |
0.30 |
|
- |
|
- |
0.30 |
EBITDA |
13,918 |
|
- |
|
- |
13,918 |
|
|
|
|
|
Q3 YTD
2018 |
|
|
|
|
Net Sales |
854,595 |
|
(74,778 |
) |
- |
929,373 |
Domestic
Sales |
667,630 |
|
(74,778 |
) |
- |
742,408 |
GM |
137,398 |
|
(83,611 |
) |
- |
221,009 |
GM% |
16.1% |
|
(111.8% |
) |
- |
23.8% |
Op Income
(Loss) |
(16,998 |
) |
(83,611 |
) |
- |
66,613 |
Income Tax
(Benefit) Expense (1) |
(2,301 |
) |
(17,605 |
) |
- |
15,304 |
Net (Loss)
Income |
(13,411 |
) |
(66,735 |
) |
- |
53,324 |
EPS |
(0.58 |
) |
(2.88 |
) |
- |
2.30 |
EBITDA |
4,705 |
|
(83,611 |
) |
- |
88,316 |
|
|
|
|
|
|
|
(1) Tax effect
on adjustments is calculated using the applicable jurisdictional
blended tax rate
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 7월(7) 2024 으로 8월(8) 2024
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 8월(8) 2023 으로 8월(8) 2024