Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the second quarter of 2022.
Second quarter of 2022 net sales of $318.2
million increased 14.6% compared to $277.6 million for the second
quarter of 2021, an increase of $40.6 million or 14.6%. The
increase in net sales was driven by volume, pricing and mix in
equipment and parts sales. Domestic sales increased $47.0 million
or 23.3% mainly due to increases in equipment and parts sales in
both the Infrastructure and Materials Solutions groups.
International sales decreased $6.4 million or 8.4% primarily due to
lower equipment sales partially offset by increased parts and
component sales. Sales declines in Europe and Mexico were partially
offset by higher sales in South America, Brazil and Canada.
Backlog as of June 30, 2022 of $837.4 million
increased by $401.3 million, or 92.0% compared to the backlog of
$436.1 million on June 30, 2021. Domestic backlog increased by
108.1% to $705.1 million while international backlog increased by
36.0% to $132.3 million.
The Company sustained an operating loss of $4.0
million in the second quarter of 2022 compared to operating income
of $10.3 million in the second quarter of 2021 representing a
decrease of 138.8%. Negative operating margin of 1.3% decreased 500
basis points from 3.7% in the second quarter 2021. The variance was
largely driven by inflation which outpaced sales volume, price and
mix combined with foreign exchange loss of $2.3 million, which
declined $2.7 million from a gain of $0.4 million in the prior year
quarter. In addition, we incurred $7.1 million of higher costs
associated with our transformation program and certain asset
impairment charges in the current quarter. Second quarter of 2022
adjusted operating income of $6.6 million decreased 50.0% compared
to $13.2 million for the second quarter of 2021. Adjusted operating
margin of 2.1% decreased 270 basis points from 4.8% in second
quarter 2021. Adjusted selling, general and administrative
expenses, as a percentage of sales, excluding research and
development expenses, declined to 14.6% in the second quarter of
2022 from 16.5% in the second quarter of 2021.
The effective income tax rate for the quarter
was 17.0% compared to 20.2% in the prior year mainly due to lower
earnings from operations. The adjusted tax rate for the quarter was
27.1% compared to 21.1% in the second quarter of 2021 primarily due
to the relative weighting of jurisdictional income.
Net loss of $3.9 million compared to net income
of $8.3 million in the second quarter of 2021 decreased $12.2
million, while diluted EPS of $(0.17) decreased from $0.36 in the
second quarter of 2021. Adjusted net income of $4.3 million
decreased 59.0% compared to the prior year period, while Adjusted
EPS of $0.19 decreased 58.7% compared to $0.46 for the second
quarter of 2021. Adjusted Net Income and Adjusted EPS excludes $8.2
million and $0.36, respectively, of incremental costs, net of tax,
primarily driven by our transformation program further described in
the Business Operations Update section of this news release. Such
costs are from initiatives to optimize our Company for long term
value creation.
EBITDA of $2.6 million decreased $15.3 million,
or 85.5%, compared to the prior year EBITDA of $17.9 million.
Adjusted EBITDA of $13.2 million decreased 36.5% compared to $20.8
million a year ago. Adjusted EBITDA margin declined 340 basis
points from 7.5% in the second quarter of 2021 to 4.1% in the
second quarter of 2022.
"Demand for Astec products continued and our
backlog remained at record levels," said Barry Ruffalo, Chief
Executive Officer of Astec. "However, financial results were
negatively impacted by lingering supply chain disruptions. We will
continue to realize prior pricing actions as we ship our backlog
and, if necessary, take additional pricing actions to combat new
inflationary pressures. Our procurement team is laser-focused on
sourcing purchased components and mitigating inbound deliveries and
increased costs while all of Astec focuses on meeting customer
expectations. Despite these challenges in the quarter, we remain
well-positioned to execute our Simplify, Focus and Grow strategy
with a strong balance sheet, continued focus on operational
excellence and a tailwind in demand provided by the long-term
federal infrastructure bill. Ongoing investments in our people and
operations will help ensure we are able to meet growing
demand."
Business Operations Update
Acquisition of MINDS Automation Group, Inc.- In
April 2022, we acquired Canada-headquartered MINDS Automation
Group, Inc., a leader in plant automation control systems and
cloud-based data management in the asphalt industry. The
acquisition provides us a broader line of controls and automation
products designed to deliver enhanced productivity through improved
equipment performance for our customers.
Simplify, Focus and Grow Strategic
Transformation ("SFG")- We continue to execute on our strategic
transformation initiative focused on implementing new business
strategies and a new operating structure. SFG is an ongoing,
multi-year program with the primary goals of optimizing our
manufacturing footprint and centralizing our business into common
platforms and operating models to reduce complexity and cost,
improving productivity and embedding continuous improvement in our
processes. These efforts are considered critical to enabling us to
operate competitively and support future growth, which are expected
to broadly benefit our customers, partners, employees and
shareholders. Currently, we have two elements of the SFG program in
operation, which include the implementation of a standardized
enterprise resource planning ("ERP") system and a gross
margin-generating lean manufacturing initiative at one of our
largest sites. The manufacturing initiative is intended to serve as
the optimal blueprint for our other manufacturing facilities.
Our multi-year phased implementation of a
standardized ERP system across our global organization will replace
much of our existing disparate core financial systems. The upgraded
ERP will initially convert our internal operations, manufacturing,
finance, human capital resources management and customer
relationship systems to cloud-based platforms. This new ERP system
will provide for standardized processes and integrated technology
solutions that enable us to better leverage automation and process
efficiency. An implementation of this scale is a major financial
undertaking and has required and will continue to require
substantial time and attention of management and key employees. We
expect to complete the ERP global design in 2022 and convert the
operations of one site in 2023 to set the foundation before
accelerating the implementation at additional sites. We anticipate
incurring total costs associated with the ERP implementation in the
range of $125 million to $150 million, with an estimated $25
million to $30 million incurred per year beginning in 2022.
Costs incurred during the three months ended
June 30, 2022 were $6.4 million which represent costs directly
associated with the SFG initiative and which cannot be capitalized
in accordance with U.S. GAAP. These costs are included in "Selling,
general and administrative expenses" in the Consolidated Statements
of Operations. Additionally, at June 30 2022, we have capitalized
$6.8 million in deferred implementation costs associated with the
ERP implementation that will be amortized ratably over the
remaining contract term once the ERP is ready for use, which are
recorded in "Other long-term assets" in the Consolidated Balance
Sheets.
Supply Chain- While we actively manage our
global supply chain for constraints and volatility, we continued to
experience supply chain disruptions in the second quarter. Our
vendors and logistics partners have increased lead times for
certain components used in our manufacturing process. We have
increased the frequency of communications with our suppliers and
customers to ensure business continuity as well as anticipate and
prepare for any new developments.
Labor- In certain manufacturing locations, we
have experienced a shortage of necessary production personnel and
increasing labor costs to attract staff in our manufacturing
operations resulting in a variety of challenges in running our
operations efficiently to meet strong customer demand. We continue
to adjust our production schedules and manufacturing workload
distribution, outsource components, implement efficiency
improvements and actively modify our recruitment process and
compensation and benefits to attract and retain production
personnel in our manufacturing facilities.
Steel- Steel is a major component of our
equipment. Steel prices began increasing in the latter part of
2020. We experienced further increases in steel pricing in 2021 and
as we entered 2022 but has stabilized at this higher run rate more
recently. Global supply chain disruptions caused by the
Russia-Ukraine conflict have added further pressure on steel prices
particularly in the international markets where our manufacturing
facilities are located. We continue to utilize strategies that
include forward-looking contracts and advanced steel purchases to
ensure supply and minimize the impact of price volatility.
Potential ongoing constraints in the supply of steel products will
continue pressuring availability of other components used in our
manufacturing process, and thus have adversely impacted our gross
margins and may continue to do so.
Highway Funding- Federal funding provides a
significant portion of all highway, street, roadway and parking
construction in the United States. We believe federal funding
influences the purchasing decisions of our customers, who are
typically more amenable to making capital equipment purchases with
long-term federal legislation in place. In November 2021, the U.S.
government enacted the Infrastructure Investment and Jobs Act
("IIJA"), which allocates $548 billion in government spending to
new infrastructure over a five-year period, with certain amounts
specifically allocated to fund highway and bridge projects. We
believe that multi-year highway programs (such as the IIJA) will
have the greatest positive impact on the road construction industry
and allow our customers to plan and execute longer-term
projects.
COVID-19- Our business has been significantly
affected by the contributory effects of the COVID-19 pandemic such
as fluctuations in demand for our products, material price
increases, increased shipping costs and lead times from production
materials, supplies and parts, labor shortages and increased labor
costs. The COVID-19 pandemic and its contributory effect on the
economy may continue to negatively disrupt our business and results
of operations in the future. The ongoing impact of the COVID-19
pandemic on our operations and the markets we serve remains
uncertain due to constantly evolving developments and cannot be
accurately predicted.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, August 2, 2022, at 8:30 A.M. Eastern Time, to review
its second quarter financial results as well as current business
conditions.
To access the call, dial (888) 440-4118 on
Tuesday, August 2, 2022 at least 10 minutes prior to the scheduled
time for the call. International callers should dial (646)
960-0833.
You may also access a live webcast of the call at:
https://events.q4inc.com/attendee/908866618
You will need to give your name and company
affiliation and reference Astec. An archived web cast will be
available for ninety days at www.astecindustries.com.
A replay of the call can be accessed by dialing
(800) 770-2030, or (647) 362-9199 for international callers,
Conference ID# 8741406. 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.
About Astec
Astec, (www.astecindustries.com), is a
manufacturer of specialized equipment for asphalt road building,
aggregate processing and concrete production. Astec's
manufacturing operations are divided into two primary business
segments: Infrastructure Solutions that includes road building,
asphalt and concrete plants, thermal and storage solutions; and
Materials Solutions that include our aggregate processing
equipment.
Safe Harbor Statements under the Private
Securities Litigation Reform Act of 1995
This News Release contains forward-looking
statements within the meaning of the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements
relate to, among other things, income, earnings, cash flows,
changes in operations, operating improvements, businesses in which
we operate and the United States and global economies. Statements
in News Release that are not historical are hereby identified as
"forward-looking statements" and may be indicated by words or
phrases such as "anticipates," "supports," "plans," "projects,"
"expects," "believes," "should," "would," "could," "hope,"
"forecast," "management is of the opinion," use of the future tense
and similar words or phrases. These forward-looking statements are
based largely on management's expectations, which are subject to a
number of known and unknown risks, uncertainties and other factors
discussed and described in our most recent Annual Report on Form
10-K, including those risks described in Part I, Item 1A. Risk
Factors thereof,and in other reports filed
subsequently by us with the Securities and Exchange Commission,
which may cause actual results, financial or otherwise, to be
materially different from those anticipated, expressed or implied
by the forward-looking statements. All forward-looking statements
included in this document are based on information available to us
on the date hereof, and we assume no obligation to update any such
forward-looking statements to reflect future events or
circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with
additional information regarding the Company's results, the Company
refers to various U.S. GAAP (U.S. generally accepted accounting
principles) and non-GAAP financial measures which management
believes provides useful information to investors. These non-GAAP
financial measures have no standardized meaning prescribed by U.S.
GAAP and therefore may not be comparable to the calculation of
similar measures for other companies. Management of the Company
does not intend these items to be considered in isolation or as a
substitute for the related GAAP measures. Nonetheless, this
non-GAAP information can be useful in understanding the Company's
operating results and the performance of its core business.
Management of the Company uses both GAAP and non-GAAP financial
measures to establish internal budgets and targets and to evaluate
the Company's financial performance against such budgets and
targets. A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in the appendix to
this News Release.
For Additional Information
Contact:Steve AndersonSenior Vice President of
Administration and Investor RelationsPhone: (423) 899-5898Fax:
(423) 899-4456E-mail: sanderson@astecindustries.com
Astec Industries
Inc.Condensed Consolidated Statements of
Operations(In millions, except shares in thousands
and per share amounts; unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 (a) |
|
|
2022 |
|
|
2021 (a) |
Net sales |
$ |
318.2 |
|
|
$ |
277.6 |
|
|
$ |
609.4 |
|
|
$ |
562.0 |
|
Cost of sales |
|
257.6 |
|
|
|
211.5 |
|
|
|
482.7 |
|
|
|
427.7 |
|
Gross profit |
|
60.6 |
|
|
|
66.1 |
|
|
|
126.7 |
|
|
|
134.3 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
53.7 |
|
|
|
48.0 |
|
|
|
106.4 |
|
|
|
99.7 |
|
Research and development expenses |
|
7.5 |
|
|
|
7.0 |
|
|
|
14.5 |
|
|
|
13.3 |
|
Restructuring, impairment and other asset charges, net |
|
3.4 |
|
|
|
0.8 |
|
|
|
4.4 |
|
|
|
1.5 |
|
Total operating expenses |
|
64.6 |
|
|
|
55.8 |
|
|
|
125.3 |
|
|
|
114.5 |
|
Operating (loss) income |
|
(4.0 |
) |
|
|
10.3 |
|
|
|
1.4 |
|
|
|
19.8 |
|
|
|
|
|
|
|
|
|
Other income: |
|
|
|
|
|
|
|
Interest expense |
|
(0.6 |
) |
|
|
(0.2 |
) |
|
|
(1.0 |
) |
|
|
(0.4 |
) |
Other (expenses) income, net |
|
(0.1 |
) |
|
|
0.3 |
|
|
|
(0.1 |
) |
|
|
0.3 |
|
(Loss) income from operations before income taxes |
|
(4.7 |
) |
|
|
10.4 |
|
|
|
0.3 |
|
|
|
19.7 |
|
Income tax (benefit) provision |
|
(0.8 |
) |
|
|
2.1 |
|
|
|
0.1 |
|
|
|
2.9 |
|
Net (loss) income |
|
(3.9 |
) |
|
|
8.3 |
|
|
|
0.2 |
|
|
|
16.8 |
|
Net income attributable to noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net (loss) income attributable to controlling interest |
$ |
(3.9 |
) |
|
$ |
8.3 |
|
|
$ |
0.2 |
|
|
$ |
16.8 |
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
Basic |
$ |
(0.17 |
) |
|
$ |
0.36 |
|
|
$ |
0.01 |
|
|
$ |
0.74 |
|
Diluted |
|
(0.17 |
) |
|
|
0.36 |
|
|
|
0.01 |
|
|
|
0.73 |
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
Basic |
|
22,851 |
|
|
|
22,742 |
|
|
|
22,817 |
|
|
|
22,688 |
|
Diluted |
|
22,851 |
|
|
|
22,918 |
|
|
|
22,924 |
|
|
|
22,905 |
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
|
|
|
|
|
|
|
|
Astec Industries
Inc.Segment Net Sales and
Profits(In millions; unaudited)
Segment net sales are reported net of
intersegment sales. Segment gross profit excludes profit on
intersegment sales remaining in inventory.
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate |
|
Total |
|
Infrastructure Solutions |
|
Materials Solutions |
|
Corporate |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Net sales |
$ |
209.6 |
|
|
$ |
107.4 |
|
|
$ |
1.2 |
|
|
$ |
318.2 |
|
|
$ |
407.1 |
|
|
$ |
201.1 |
|
|
$ |
1.2 |
|
|
$ |
609.4 |
|
2021 Net sales(a) |
|
179.8 |
|
|
|
97.8 |
|
|
|
— |
|
|
|
277.6 |
|
|
|
381.3 |
|
|
|
180.7 |
|
|
|
— |
|
|
|
562.0 |
|
Change $ |
|
29.8 |
|
|
|
9.6 |
|
|
|
1.2 |
|
|
|
40.6 |
|
|
|
25.8 |
|
|
|
20.4 |
|
|
|
1.2 |
|
|
|
47.4 |
|
Change % |
|
16.6 |
% |
|
|
9.8 |
% |
|
|
— |
% |
|
|
14.6 |
% |
|
|
6.8 |
% |
|
|
11.3 |
% |
|
|
— |
% |
|
|
8.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Gross profit |
|
38.4 |
|
|
|
21.9 |
|
|
|
0.3 |
|
|
|
60.6 |
|
|
|
80.3 |
|
|
|
45.8 |
|
|
|
0.6 |
|
|
|
126.7 |
|
2022 Gross profit % |
|
18.3 |
% |
|
|
20.4 |
% |
|
|
25.0 |
% |
|
|
19.0 |
% |
|
|
19.7 |
% |
|
|
22.8 |
% |
|
|
50 |
% |
|
|
20.8 |
% |
2021 Gross profit(a) |
|
38.8 |
|
|
|
27.3 |
|
|
|
— |
|
|
|
66.1 |
|
|
|
87.0 |
|
|
|
47.3 |
|
|
|
— |
|
|
|
134.3 |
|
2021 Gross profit %(a) |
|
21.6 |
% |
|
|
27.9 |
% |
|
|
N/M |
|
|
|
23.8 |
% |
|
|
22.8 |
% |
|
|
26.2 |
% |
|
|
N/M |
|
|
|
23.9 |
% |
Change $ |
|
(0.4 |
) |
|
|
(5.4 |
) |
|
|
0.3 |
|
|
|
(5.5 |
) |
|
|
(6.7 |
) |
|
|
(1.5 |
) |
|
|
0.6 |
|
|
|
(7.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2022 Adjusted EBITDA |
|
15.9 |
|
|
|
9.5 |
|
|
|
(12.3 |
) |
|
|
13.1 |
|
|
|
32.3 |
|
|
|
21.7 |
|
|
|
(22.1 |
) |
|
|
31.9 |
|
2021 Adjusted EBITDA(a) |
|
16.5 |
|
|
|
15.9 |
|
|
|
(11.9 |
) |
|
|
20.5 |
|
|
|
42.7 |
|
|
|
25.6 |
|
|
|
(26.9 |
) |
|
|
41.4 |
|
Change $ |
|
(0.6 |
) |
|
|
(6.4 |
) |
|
|
(0.4 |
) |
|
|
(7.4 |
) |
|
|
(10.4 |
) |
|
|
(3.9 |
) |
|
|
4.8 |
|
|
|
(9.5 |
) |
Change % |
|
(3.6 |
)% |
|
|
(40.3 |
)% |
|
|
(3.4 |
)% |
|
|
(36.1 |
)% |
|
|
(24.4 |
)% |
|
|
(15.2 |
)% |
|
|
17.8 |
% |
|
|
(22.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively.N/M = Not Meaningful |
A reconciliation of total segment Adjusted EBITDA
to the Company's net income attributable to controlling interest is
as follows (in millions; unaudited):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 (a) |
|
Change $ |
|
|
2022 |
|
|
2021 (a) |
|
Change $ |
Segment Operating Adjusted EBITDA |
$ |
13.1 |
|
|
$ |
20.5 |
|
|
$ |
(7.4 |
) |
|
$ |
31.9 |
|
|
$ |
41.4 |
|
|
$ |
(9.5 |
) |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Transformation program |
|
(6.4 |
) |
|
|
(2.1 |
) |
|
|
(4.3 |
) |
|
|
(11.7 |
) |
|
|
(5.3 |
) |
|
|
(6.4 |
) |
Facility closures and reduction in force |
|
(0.4 |
) |
|
|
(0.8 |
) |
|
|
0.4 |
|
|
|
(1.4 |
) |
|
|
(1.6 |
) |
|
|
0.2 |
|
Asset impairment |
|
(3.0 |
) |
|
|
(0.2 |
) |
|
|
(2.8 |
) |
|
|
(3.0 |
) |
|
|
(0.2 |
) |
|
|
(2.8 |
) |
Gain on sale of property, equipment and business, net |
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
(0.3 |
) |
Transaction costs |
|
(0.8 |
) |
|
|
— |
|
|
|
(0.8 |
) |
|
|
(1.4 |
) |
|
|
— |
|
|
|
(1.4 |
) |
Interest expense, net |
|
(0.4 |
) |
|
|
— |
|
|
|
(0.4 |
) |
|
|
(0.6 |
) |
|
|
(0.1 |
) |
|
|
(0.5 |
) |
Depreciation and amortization |
|
(6.9 |
) |
|
|
(7.5 |
) |
|
|
0.6 |
|
|
|
(13.6 |
) |
|
|
(15.1 |
) |
|
|
1.5 |
|
Income tax benefit (provision) |
|
0.8 |
|
|
|
(2.1 |
) |
|
|
2.9 |
|
|
|
(0.1 |
) |
|
|
(2.9 |
) |
|
|
2.8 |
|
Recapture of intercompany profit |
|
0.1 |
|
|
|
0.3 |
|
|
|
(0.2 |
) |
|
|
0.1 |
|
|
|
0.3 |
|
|
|
(0.2 |
) |
Net (loss) income attributable to controlling interest |
$ |
(3.9 |
) |
|
$ |
8.3 |
|
|
$ |
(12.2 |
) |
|
$ |
0.2 |
|
|
$ |
16.8 |
|
|
$ |
(16.6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
Astec Industries
Inc.Condensed Consolidated Balance
Sheets(In millions; unaudited)
|
June 30, 2022 |
|
December 31, 2021 (a) |
Assets |
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and restricted cash |
$ |
50.6 |
|
$ |
134.4 |
Investments |
|
5.8 |
|
|
8.6 |
Trade receivables and contract assets, net |
|
160.1 |
|
|
141.7 |
Inventories, net |
|
371.1 |
|
|
298.7 |
Other current assets, net |
|
73.9 |
|
|
52.6 |
Total current assets |
|
661.5 |
|
|
636.0 |
Property, plant and equipment, net |
|
162.3 |
|
|
171.7 |
Other long-term assets |
|
126.1 |
|
|
98.1 |
Total assets |
$ |
949.9 |
|
$ |
905.8 |
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
104.3 |
|
$ |
82.2 |
Customer deposits |
|
73.4 |
|
|
60.2 |
Other current liabilities |
|
95.7 |
|
|
80.9 |
Total current liabilities |
|
273.4 |
|
|
223.3 |
Long-term debt |
|
0.1 |
|
|
0.2 |
Other long-term liabilities |
|
32.5 |
|
|
31.0 |
Total equity |
|
643.9 |
|
|
651.3 |
Total liabilities and equity |
$ |
949.9 |
|
$ |
905.8 |
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of contract assets
of $2.4 million, work-in-process inventory of $4.3 million,
accounts payable of $1.3 million, other current liabilities of $0.7
million, equity of $3.5 million and the understatement of other
current assets of $1.0 million and other long-term assets of $0.2
million. |
Astec Industries
Inc.Condensed Consolidated Statements of Cash
Flows(In millions; unaudited)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 (a) |
Cash flows from operating activities: |
|
|
|
Net income |
$ |
0.2 |
|
|
$ |
16.8 |
|
Adjustments to reconcile net income to net cash (used in) provided
by operating activities: |
|
|
|
Depreciation and amortization |
|
13.6 |
|
|
|
15.1 |
|
Provision for credit losses |
|
0.2 |
|
|
|
0.7 |
|
Provision for warranties |
|
6.4 |
|
|
|
4.9 |
|
Deferred compensation (benefit) expense |
|
(0.9 |
) |
|
|
0.3 |
|
Share-based compensation |
|
3.4 |
|
|
|
2.9 |
|
Deferred tax (benefit) provision |
|
(8.0 |
) |
|
|
5.4 |
|
Gain on disposition of property and equipment |
|
— |
|
|
|
(0.3 |
) |
Asset impairment charges, net |
|
3.0 |
|
|
|
0.2 |
|
Distributions to deferred compensation programs' participants |
|
(0.4 |
) |
|
|
(1.1 |
) |
Change in operating assets and liabilities, excluding the effects
of acquisitions: |
|
|
|
Purchase of trading securities, net |
|
(0.5 |
) |
|
|
(3.1 |
) |
Receivables and other contract assets |
|
(21.5 |
) |
|
|
(32.5 |
) |
Inventories |
|
(71.5 |
) |
|
|
(6.6 |
) |
Prepaid expenses |
|
(3.8 |
) |
|
|
(0.1 |
) |
Other assets |
|
(4.8 |
) |
|
|
(0.5 |
) |
Accounts payable |
|
22.7 |
|
|
|
25.5 |
|
Accrued loss reserves |
|
0.5 |
|
|
|
(0.4 |
) |
Accrued payroll and related expenses |
|
6.7 |
|
|
|
7.8 |
|
Other accrued liabilities |
|
2.0 |
|
|
|
6.6 |
|
Accrued product warranty |
|
(5.2 |
) |
|
|
(4.7 |
) |
Customer deposits |
|
14.2 |
|
|
|
0.9 |
|
Income taxes payable/prepaid |
|
1.8 |
|
|
|
(7.3 |
) |
Net cash (used in) provided by operating activities |
|
(41.9 |
) |
|
|
30.5 |
|
Cash flows from investing activities: |
|
|
|
Acquisitions, net of cash acquired |
|
(17.8 |
) |
|
|
0.1 |
|
Price adjustment on prior sale of subsidiary |
|
— |
|
|
|
(1.1 |
) |
Expenditures for property and equipment |
|
(18.8 |
) |
|
|
(7.2 |
) |
Proceeds from sale of property and equipment |
|
0.2 |
|
|
|
1.5 |
|
Purchase of investments |
|
(0.6 |
) |
|
|
(0.6 |
) |
Sale of investments |
|
0.1 |
|
|
|
0.5 |
|
Net cash used in investing activities |
|
(36.9 |
) |
|
|
(6.8 |
) |
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
(Continued)
Astec Industries
Inc.Condensed Consolidated Statements of Cash
Flows (Continued)(In millions;
unaudited)
|
Six Months Ended June 30, |
|
|
2022 |
|
|
|
2021 |
|
Cash flows from financing activities: |
|
|
|
Payment of dividends |
|
(5.5 |
) |
|
|
(5.0 |
) |
Proceeds from borrowings on credit facility and bank loans |
|
28.5 |
|
|
|
2.3 |
|
Repayments of borrowings on credit facility and bank loans |
|
(25.3 |
) |
|
|
(2.7 |
) |
Sale of Company stock by deferred compensation programs, net |
|
0.2 |
|
|
|
0.5 |
|
Withholding tax paid upon vesting of share-based compensation
awards |
|
(1.6 |
) |
|
|
(3.2 |
) |
Net cash used in financing activities |
|
(3.7 |
) |
|
|
(8.1 |
) |
Effect of exchange rates on cash |
|
(1.3 |
) |
|
|
0.3 |
|
(Decrease) increase in cash and cash equivalents and restricted
cash |
|
(83.8 |
) |
|
|
15.9 |
|
Cash and cash equivalents and restricted cash, beginning of
period |
|
134.4 |
|
|
|
158.6 |
|
Cash and cash equivalents and restricted cash, end of period |
$ |
50.6 |
|
|
$ |
174.5 |
|
Appendix
The following tables present selected line items
from the Consolidated Statements of Operations and segment
information for the respective periods identified.
2Q 2022 GAAP to Non-GAAP Reconciliation Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
Transformation Program |
|
Transaction Costs |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
318.2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
318.2 |
|
Gross profit |
|
60.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
60.6 |
|
Gross profit % |
|
19.0 |
% |
|
|
|
|
|
|
|
|
19.0 |
% |
Selling, general and administrative expenses |
|
53.7 |
|
|
|
— |
|
|
|
(6.4 |
) |
|
|
(0.8 |
) |
|
|
46.5 |
|
Restructuring, impairment and other asset charges, net |
|
3.4 |
|
|
|
(3.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating (loss) income |
|
(4.0 |
) |
|
|
3.4 |
|
|
|
6.4 |
|
|
|
0.8 |
|
|
|
6.6 |
|
Income taxes |
|
(0.8 |
) |
|
|
0.8 |
|
|
|
1.4 |
|
|
|
0.2 |
|
|
|
1.6 |
|
Net (loss) income attributable to controlling interest |
|
(3.9 |
) |
|
|
2.6 |
|
|
|
5.0 |
|
|
|
0.6 |
|
|
|
4.3 |
|
Diluted EPS |
|
(0.17 |
) |
|
|
0.11 |
|
|
|
0.22 |
|
|
|
0.03 |
|
|
|
0.19 |
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
209.6 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
209.6 |
|
Gross profit |
|
38.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
38.4 |
|
Gross profit % |
|
18.3 |
% |
|
|
|
|
|
|
|
|
18.3 |
% |
|
|
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
107.4 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
107.4 |
|
Gross profit |
|
21.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21.9 |
|
Gross profit % |
|
20.4 |
% |
|
|
|
|
|
|
|
|
20.4 |
% |
|
|
|
|
|
|
|
|
|
|
2Q YTD 2022 GAAP to Non-GAAP Reconciliation
Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
Transformation Program |
|
Transaction Costs |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
|
|
Net sales |
$ |
609.4 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
609.4 |
|
Gross profit |
|
126.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
126.7 |
|
Gross profit % |
|
20.8 |
% |
|
|
|
|
|
|
|
|
20.8 |
% |
Selling, general and administrative expenses |
|
106.4 |
|
|
|
— |
|
|
|
(11.7 |
) |
|
|
(1.4 |
) |
|
|
93.3 |
|
Restructuring, impairment and other asset charges, net |
|
4.4 |
|
|
|
(4.4 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating income |
|
1.4 |
|
|
|
4.4 |
|
|
|
11.7 |
|
|
|
1.4 |
|
|
|
18.9 |
|
Income taxes |
|
0.1 |
|
|
|
1.0 |
|
|
|
2.7 |
|
|
|
0.3 |
|
|
|
4.1 |
|
Net income attributable to controlling interest |
|
0.2 |
|
|
|
3.4 |
|
|
|
9.0 |
|
|
|
1.1 |
|
|
|
13.7 |
|
Diluted EPS |
|
0.01 |
|
|
|
0.15 |
|
|
|
0.39 |
|
|
|
0.05 |
|
|
|
0.60 |
|
|
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
407.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
407.1 |
|
Gross profit |
|
80.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
80.3 |
|
Gross profit % |
|
19.7 |
% |
|
|
|
|
|
|
|
|
19.7 |
% |
|
|
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
|
|
Net sales |
|
201.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
201.1 |
|
Gross profit |
|
45.8 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
45.8 |
|
Gross profit % |
|
22.8 |
% |
|
|
|
|
|
|
|
|
22.8 |
% |
2Q 2021(a)GAAP to
Non-GAAP Reconciliation Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
Transformation Program |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
277.6 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
277.6 |
|
Gross profit |
|
66.1 |
|
|
|
— |
|
|
|
— |
|
|
|
66.1 |
|
Gross profit % |
|
23.8 |
% |
|
|
|
|
|
|
23.8 |
% |
Selling, general and administrative expenses |
|
48.0 |
|
|
|
— |
|
|
|
(2.1 |
) |
|
|
45.9 |
|
Restructuring, impairment and other asset charges, net |
|
0.8 |
|
|
|
(0.8 |
) |
|
|
— |
|
|
|
— |
|
Operating income |
|
10.3 |
|
|
|
0.8 |
|
|
|
2.1 |
|
|
|
13.2 |
|
Income taxes |
|
2.1 |
|
|
|
0.2 |
|
|
|
0.5 |
|
|
|
2.8 |
|
Net income attributable to controlling interest |
|
8.3 |
|
|
|
0.6 |
|
|
|
1.6 |
|
|
|
10.5 |
|
Diluted EPS |
|
0.36 |
|
|
|
0.03 |
|
|
|
0.07 |
|
|
|
0.46 |
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
Net sales |
|
179.8 |
|
|
|
— |
|
|
|
— |
|
|
|
179.8 |
|
Gross profit |
|
38.8 |
|
|
|
— |
|
|
|
— |
|
|
|
38.8 |
|
Gross profit % |
|
21.6 |
% |
|
|
|
|
|
|
21.6 |
% |
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
Net sales |
|
97.8 |
|
|
|
— |
|
|
|
— |
|
|
|
97.8 |
|
Gross profit |
|
27.3 |
|
|
|
— |
|
|
|
— |
|
|
|
27.3 |
|
Gross profit % |
|
27.9 |
% |
|
|
|
|
|
|
27.9 |
% |
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
|
|
|
|
|
|
|
|
2Q YTD 2021(a)GAAP to
Non-GAAP Reconciliation Table |
|
As Reported (GAAP) |
|
Restructuring, Impairment, and Other Charges,
Net |
|
Transformation Program |
|
As Adjusted (Non-GAAP) |
Consolidated |
|
|
|
|
|
|
|
Net sales |
$ |
562.0 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
562.0 |
|
Gross profit |
|
134.3 |
|
|
|
— |
|
|
|
— |
|
|
|
134.3 |
|
Gross profit % |
|
23.9 |
% |
|
|
|
|
|
|
23.9 |
% |
Selling, general and administrative expenses |
|
200.6 |
|
|
|
— |
|
|
|
(5.3 |
) |
|
|
195.3 |
|
Restructuring, impairment and other asset charges, net |
|
1.5 |
|
|
|
(1.5 |
) |
|
|
— |
|
|
|
— |
|
Operating income |
|
19.8 |
|
|
|
1.5 |
|
|
|
5.3 |
|
|
|
26.6 |
|
Income taxes |
|
2.9 |
|
|
|
0.3 |
|
|
|
1.3 |
|
|
|
4.5 |
|
Net income attributable to controlling interest |
|
16.8 |
|
|
|
1.2 |
|
|
|
4.0 |
|
|
|
22.0 |
|
Diluted EPS |
|
0.73 |
|
|
|
0.05 |
|
|
|
0.18 |
|
|
|
0.96 |
|
|
|
|
|
|
|
|
|
Infrastructure Solutions |
|
|
|
|
|
|
|
Net sales |
|
381.3 |
|
|
|
— |
|
|
|
— |
|
|
|
381.3 |
|
Gross profit |
|
87.0 |
|
|
|
— |
|
|
|
— |
|
|
|
87.0 |
|
Gross profit % |
|
22.8 |
% |
|
|
|
|
|
|
22.8 |
% |
|
|
|
|
|
|
|
|
Materials Solutions |
|
|
|
|
|
|
|
Net sales |
|
180.7 |
|
|
|
— |
|
|
|
— |
|
|
|
180.7 |
|
Gross profit |
|
47.3 |
|
|
|
— |
|
|
|
— |
|
|
|
47.3 |
|
Gross profit % |
|
26.2 |
% |
|
|
|
|
|
|
26.2 |
% |
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
Astec Industries
Inc.GAAP vs Non-GAAP Adjusted EPS
Reconciliations(In millions, except per share
amounts; unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 (a) |
|
|
2022 |
|
|
2021 (a) |
Net (loss) income attributable to controlling interest |
$ |
(3.9 |
) |
|
$ |
8.3 |
|
|
$ |
0.2 |
|
|
$ |
16.8 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
6.4 |
|
|
|
2.1 |
|
|
|
11.7 |
|
|
|
5.3 |
|
Facility closures and reduction in force |
|
0.4 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
1.6 |
|
Asset impairment |
|
3.0 |
|
|
|
0.2 |
|
|
|
3.0 |
|
|
|
0.2 |
|
Gain on sale of property, equipment and business, net |
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.3 |
) |
Transaction costs |
|
0.8 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
Income taxes |
|
(2.4 |
) |
|
|
(0.7 |
) |
|
|
(4.0 |
) |
|
|
(1.6 |
) |
Adjusted net income attributable to controlling interest |
$ |
4.3 |
|
|
$ |
10.5 |
|
|
$ |
13.7 |
|
|
$ |
22.0 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.17 |
) |
|
$ |
0.36 |
|
|
$ |
0.01 |
|
|
$ |
0.73 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
0.28 |
|
|
|
0.09 |
|
|
|
0.51 |
|
|
|
0.23 |
|
Facility closures and reduction in force(b) |
|
0.02 |
|
|
|
0.04 |
|
|
|
0.06 |
|
|
|
0.07 |
|
Asset impairment |
|
0.13 |
|
|
|
0.01 |
|
|
|
0.13 |
|
|
|
0.01 |
|
Gain on sale of property, equipment and business, net |
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
|
|
(0.01 |
) |
Transaction costs |
|
0.04 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
— |
|
Income taxes |
|
(0.11 |
) |
|
|
(0.03 |
) |
|
|
(0.17 |
) |
|
|
(0.07 |
) |
Adjusted EPS |
$ |
0.19 |
|
|
$ |
0.46 |
|
|
$ |
0.60 |
|
|
$ |
0.96 |
|
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
|
|
|
|
|
|
|
|
(b)Calculation includes the impact of a rounding adjustment |
Astec Industries
Inc.EBITDA and Adjusted EBITDA
Reconciliations(In millions;
unaudited)
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2022 |
|
|
2021 (a) |
|
|
2022 |
|
|
2021 (a) |
Net sales |
$ |
318.2 |
|
|
$ |
277.6 |
|
|
$ |
609.4 |
|
|
$ |
562.0 |
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to controlling interest |
$ |
(3.9 |
) |
|
$ |
8.3 |
|
|
$ |
0.2 |
|
|
$ |
16.8 |
|
Interest expense (income), net |
|
0.4 |
|
|
|
— |
|
|
|
0.6 |
|
|
|
0.1 |
|
Depreciation and amortization |
|
6.9 |
|
|
|
7.5 |
|
|
|
13.6 |
|
|
|
15.1 |
|
Income tax (benefit) provision |
|
(0.8 |
) |
|
|
2.1 |
|
|
|
0.1 |
|
|
|
2.9 |
|
EBITDA |
|
2.6 |
|
|
|
17.9 |
|
|
|
14.5 |
|
|
|
34.9 |
|
EBITDA margin |
|
0.8 |
% |
|
|
6.4 |
% |
|
|
2.4 |
% |
|
|
6.2 |
% |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
6.4 |
|
|
|
2.1 |
|
|
|
11.7 |
|
|
|
5.3 |
|
Facility closures and reduction in force |
|
0.4 |
|
|
|
0.8 |
|
|
|
1.4 |
|
|
|
1.6 |
|
Asset impairment |
|
3.0 |
|
|
|
0.2 |
|
|
|
3.0 |
|
|
|
0.2 |
|
Gain on sale of property, equipment and business, net |
|
— |
|
|
|
(0.2 |
) |
|
|
— |
|
|
|
(0.3 |
) |
Transaction costs |
|
0.8 |
|
|
|
— |
|
|
|
1.4 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
13.2 |
|
|
$ |
20.8 |
|
|
$ |
32.0 |
|
|
$ |
41.7 |
|
Adjusted EBITDA margin |
|
4.1 |
% |
|
|
7.5 |
% |
|
|
5.3 |
% |
|
|
7.4 |
% |
|
|
|
|
|
|
|
|
(a)Certain prior period amounts have been revised to correct
immaterial errors related to the overstatement of work-in-process
inventory and an overstatement of "Net sales" and Cost of sales" as
a result of over-time revenue recognition calculation errors. These
errors caused the overstatement of "Net sales" by $0.4 million in
both the three and six month periods ended June 30, 2021 and the
net understatement of "Cost of sales" by $0.5 million and $0.8
million in the three and six months periods ended June 30, 2021,
respectively. |
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024