Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the third quarter ended September 30, 2024.
"In the third quarter, we had mixed results. In
Infrastructure Solutions, both sales and margins were up for the
quarter, while in Materials Solutions, we continued to face
difficult market conditions. We made nice progress improving our
cash flow in the third quarter, which continues to be a key focal
point. We were also able to settle one of our previously disclosed,
long-standing, legacy litigation matters related to a product we no
longer own, which resulted in an $8.4 million charge in the third
quarter," said Jaco van der Merwe, Chief Executive Officer.
Mr. van der Merwe continued, "With sound
fundamentals in place, we continue to focus on commercial and
operational excellence. We have a customer-focused approach and
product offerings to drive sustainable value creation for our
shareholders."
| |
GAAP |
|
Adjusted |
| (in millions, except
per share and percentage data) |
3Q 2024 |
|
3Q 2023 |
|
Change |
|
3Q 2024 |
|
3Q 2023 |
|
Change |
| Net sales |
$ |
291.4 |
|
|
$ |
303.1 |
|
|
(3.9 |
)% |
|
|
|
|
|
|
|
Domestic sales |
|
211.2 |
|
|
|
229.6 |
|
|
(8.0 |
)% |
|
|
|
|
|
|
|
International sales |
|
80.2 |
|
|
|
73.5 |
|
|
9.1 |
% |
|
|
|
|
|
|
| Backlog |
|
475.8 |
|
|
|
614.7 |
|
|
(22.6 |
)% |
|
|
|
|
|
|
|
Domestic backlog |
|
377.6 |
|
|
|
510.6 |
|
|
(26.0 |
)% |
|
|
|
|
|
|
|
International backlog |
|
98.2 |
|
|
|
104.1 |
|
|
(5.7 |
)% |
|
|
|
|
|
|
|
(Loss) income from operations |
|
(7.2 |
) |
|
|
(5.2 |
) |
|
(38.5 |
)% |
|
9.9 |
|
|
3.1 |
|
|
219.4 |
% |
|
Operating margin |
|
(2.5 |
)% |
|
|
(1.7 |
)% |
|
(80) bps |
|
|
3.4 |
% |
|
1.0 |
% |
|
240 bps |
|
| Effective tax rate |
|
27.1 |
% |
|
|
8.5 |
% |
|
1,860 bps |
|
|
18.6 |
% |
|
108.3 |
% |
|
(8,970) bps |
|
| Net (loss) income attributable
to controlling interest |
|
(6.2 |
) |
|
|
(6.6 |
) |
|
6.1 |
% |
|
7.0 |
|
|
(0.2 |
) |
|
3600.0 |
% |
| Diluted EPS |
|
(0.27 |
) |
|
|
(0.29 |
) |
|
6.9 |
% |
|
0.31 |
|
|
(0.01 |
) |
|
3200.0 |
% |
| EBITDA (a non-GAAP
measure) |
|
0.6 |
|
|
|
1.8 |
|
|
(66.7 |
)% |
|
17.4 |
|
|
10.0 |
|
|
74.0 |
% |
|
EBITDA margin (a non-GAAP measure) |
|
0.2 |
% |
|
|
0.6 |
% |
|
(40) bps |
|
|
6.0 |
% |
|
3.3 |
% |
|
270 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segments Results
Our two reportable segments are comprised of
sites based upon the nature of the products or services produced,
the type of customer for the products, the similarity of economic
characteristics, the manner in which management reviews results and
the nature of the production process, among other considerations.
Based on a review of these factors, our Australia and LatAm sites,
which were previously reported in the Infrastructure Solutions
segment have moved to the Materials Solutions segment and Astec
Digital, which was previously included in the Corporate and Other
category has moved to the Infrastructure Solutions segment, each
beginning January 1, 2024. Prior periods have been revised to
reflect the changes for the segment composition for
comparability.
Infrastructure Solutions - Road
building equipment, asphalt and concrete plants, thermal storage
solutions and related aftermarket parts.
- Net sales of $165.0 million
increased slightly as the infrastructure construction market
remains strong with healthy demand for asphalt and concrete plant
deliveries anticipated through the beginning of 2025.
- Segment Operating Adjusted EBITDA
of $15.6 million increased 17.3% and Segment Operating Adjusted
EBITDA margin of 9.5% increased 140 basis points.
- Backlog was $351.1 million.
Materials Solutions -
Processing equipment to crush, screen and convey aggregates and
related aftermarket parts.
- Net sales of $126.4 million
decreased by 9.6% primarily due to lower equipment sales
attributable to finance capacity constraints with contractors and
dealers resulting in fewer product conversions. Dealer quoting
remains active.
- Segment Operating Adjusted EBITDA
of $14.5 million increased 52.6% and Segment Operating Adjusted
EBITDA margin of 11.5% increased 470 basis points, due to a $6.4
million legal charge in the prior year third quarter, continued
efforts towards cost reduction and sharing facility capacity with
the Infrastructure Solutions segment.
- Backlog was $124.7 million.
Balance Sheet, Cash Flow and
Liquidity
- Our total liquidity was $195.1
million, consisting of $52.7 million of cash and cash equivalents
available for operating purposes and $142.4 million available for
additional borrowings under our revolving credit facility.
- Free Cash Flow in the quarter was
$19.9 million after incurring capital expenditures of $2.6
million.
Third Quarter Capital
Allocation
- Dividend payment of $0.13 per
share.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, November 6, 2024, at 8:30 A.M. Eastern Time, to
review its third quarter financial results as well as current
business conditions.
To access the call, dial (888) 440-4118 on
Wednesday, November 6, 2024 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/885477721
You will need to give your name and company
affiliation and reference Astec. An archived webcast will be
available for ninety days at www.astecindustries.com.
A replay of the call can be accessed until
November 20, 2024 by dialing (800) 770-2030, or (609) 800-9909 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. Astec also operates a line of controls and automation
products designed to deliver enhanced productivity through improved
equipment performance.
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 this 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," "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 this News
Release.
For Additional Information
Contact: Steve Anderson Senior Vice President of
Administration and Investor RelationsPhone: (423)
899-5898 E-mail: sanderson@astecindustries.com
Certain reclassifications have been made to the
prior period financial information included in this News Release to
conform to the presentation used in the financial statements for
the three months ended September 30, 2024.
|
Astec Industries Inc.Condensed
Consolidated Statements of Operations(In millions,
except shares in thousands and per share amounts;
unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net
sales |
$ |
291.4 |
|
|
$ |
303.1 |
|
|
$ |
946.1 |
|
|
$ |
1,001.0 |
|
| Cost
of sales |
|
224.6 |
|
|
|
233.5 |
|
|
|
721.1 |
|
|
|
759.3 |
|
| Gross
profit |
|
66.8 |
|
|
|
69.6 |
|
|
|
225.0 |
|
|
|
241.7 |
|
| |
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
| Selling, general and
administrative expenses |
|
65.6 |
|
|
|
74.3 |
|
|
|
208.1 |
|
|
|
206.7 |
|
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
|
Restructuring, other impairment and asset charges, net |
|
8.4 |
|
|
|
0.5 |
|
|
|
8.3 |
|
|
|
5.3 |
|
|
Total operating expenses |
|
74.0 |
|
|
|
74.8 |
|
|
|
236.6 |
|
|
|
212.0 |
|
|
(Loss) income from operations |
|
(7.2 |
) |
|
|
(5.2 |
) |
|
|
(11.6 |
) |
|
|
29.7 |
|
| |
|
|
|
|
|
|
|
| Other
expenses, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
(2.6 |
) |
|
|
(2.4 |
) |
|
|
(8.4 |
) |
|
|
(6.4 |
) |
|
Other income, net |
|
1.3 |
|
|
|
0.5 |
|
|
|
2.5 |
|
|
|
2.0 |
|
|
(Loss) income before income taxes |
|
(8.5 |
) |
|
|
(7.1 |
) |
|
|
(17.5 |
) |
|
|
25.3 |
|
|
Income tax (benefit) provision |
|
(2.3 |
) |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
6.5 |
|
| Net
(loss) income |
|
(6.2 |
) |
|
|
(6.5 |
) |
|
|
(16.9 |
) |
|
|
18.8 |
|
| Net
(income) loss attributable to noncontrolling interest |
|
— |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.2 |
) |
| Net
(loss) income attributable to controlling interest |
$ |
(6.2 |
) |
|
$ |
(6.6 |
) |
|
$ |
(16.8 |
) |
|
$ |
18.6 |
|
| |
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
$ |
(0.27 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.74 |
) |
|
$ |
0.82 |
|
|
Diluted |
|
(0.27 |
) |
|
|
(0.29 |
) |
|
|
(0.74 |
) |
|
|
0.82 |
|
| |
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
22,816 |
|
|
|
22,747 |
|
|
|
22,792 |
|
|
|
22,709 |
|
|
Diluted |
|
22,816 |
|
|
|
22,747 |
|
|
|
22,792 |
|
|
|
22,776 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.Reportable
Segment Net Sales and
Operating Adjusted EBITDA(In
millions, except percentage data; unaudited) |
| |
Reportable segment net sales exclude
intersegment sales.
| |
Three Months Ended September 30, |
| |
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
|
Revenues from external customers |
|
|
|
|
|
|
|
|
Infrastructure Solutions |
$ |
165.0 |
|
|
$ |
163.2 |
|
|
$ |
1.8 |
|
|
1.1 |
% |
| Materials Solutions |
|
126.4 |
|
|
|
139.9 |
|
|
|
(13.5 |
) |
|
(9.6 |
)% |
| Net sales |
$ |
291.4 |
|
|
$ |
303.1 |
|
|
$ |
(11.7 |
) |
|
(3.9 |
)% |
| |
|
|
|
|
|
|
|
| Segment Operating
Adjusted EBITDA |
|
|
|
|
|
|
|
| Infrastructure Solutions |
$ |
15.6 |
|
|
$ |
13.3 |
|
|
$ |
2.3 |
|
|
17.3 |
% |
| Materials Solutions |
|
14.5 |
|
|
|
9.5 |
|
|
|
5.0 |
|
|
52.6 |
% |
| Segment Operating Adjusted
EBITDA - Reportable Segments |
|
30.1 |
|
|
|
22.8 |
|
|
|
|
|
| Reconciliation of
Segment Operating Adjusted EBITDA to "(Loss)
income before income taxes" |
|
|
|
|
|
|
|
| Corporate and Other |
|
(12.7 |
) |
|
|
(12.8 |
) |
|
|
|
|
| Transformation program |
|
(8.4 |
) |
|
|
(7.7 |
) |
|
|
|
|
| Restructuring and other
related charges |
|
(8.4 |
) |
|
|
(0.1 |
) |
|
|
|
|
| (Loss) gain on sale of
property and equipment, net |
|
— |
|
|
|
(0.4 |
) |
|
|
|
|
| Interest expense, net |
|
(2.1 |
) |
|
|
(1.9 |
) |
|
|
|
|
| Depreciation and
amortization |
|
(7.0 |
) |
|
|
(7.1 |
) |
|
|
|
|
| Net income attributable to
noncontrolling interest |
|
— |
|
|
|
0.1 |
|
|
|
|
|
| (Loss) income before income
taxes |
$ |
(8.5 |
) |
|
$ |
(7.1 |
) |
|
|
|
|
| |
|
|
|
|
|
|
|
| Segment Operating
Adjusted EBITDA Margin |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
| Infrastructure Solutions |
|
9.5 |
% |
|
|
8.1 |
% |
|
|
140 bps |
|
|
|
| Materials Solutions |
|
11.5 |
% |
|
|
6.8 |
% |
|
|
470 bps |
|
|
|
| |
|
(Continued) |
|
Astec Industries Inc.Reportable Segment
Net Sales and Operating Adjusted EBITDA
(Continued)(In millions, except percentage data;
unaudited) |
| |
| |
Nine Months Ended September 30, |
| |
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
| Revenues from external
customers |
|
|
|
|
|
|
|
|
Infrastructure Solutions |
$ |
588.6 |
|
|
$ |
578.1 |
|
|
$ |
10.5 |
|
|
|
1.8 |
% |
| Materials Solutions |
|
357.5 |
|
|
|
422.9 |
|
|
|
(65.4 |
) |
|
|
(15.5 |
)% |
| Net sales |
$ |
946.1 |
|
|
$ |
1,001.0 |
|
|
$ |
(54.9 |
) |
|
|
(5.5 |
)% |
| |
|
|
|
|
|
|
|
|
|
| Segment Operating
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
| Infrastructure Solutions |
$ |
68.4 |
|
|
$ |
67.5 |
|
|
$ |
0.9 |
|
|
|
1.3 |
% |
| Materials Solutions |
|
30.0 |
|
|
|
42.4 |
|
|
|
(12.4 |
) |
|
|
(29.2 |
)% |
| Segment Operating Adjusted
EBITDA - Reportable Segments |
|
98.4 |
|
|
|
109.9 |
|
|
|
|
|
| Reconciliation of
Segment Operating Adjusted EBITDA to "(Loss)
income before income taxes" |
|
|
|
|
|
|
|
| Corporate and Other |
|
(34.5 |
) |
|
|
(32.5 |
) |
|
|
|
|
| Transformation program |
|
(25.8 |
) |
|
|
(22.5 |
) |
|
|
|
|
| Restructuring and other
related charges |
|
(9.4 |
) |
|
|
(7.6 |
) |
|
|
|
|
| Goodwill impairment |
|
(20.2 |
) |
|
|
— |
|
|
|
|
|
| Asset impairment |
|
— |
|
|
|
(0.8 |
) |
|
|
|
|
| (Loss) gain on sale of
property and equipment, net |
|
1.1 |
|
|
|
3.1 |
|
|
|
|
|
| Interest expense, net |
|
(6.9 |
) |
|
|
(4.9 |
) |
|
|
|
|
| Depreciation and
amortization |
|
(20.1 |
) |
|
|
(19.6 |
) |
|
|
|
|
| Net income (loss) attributable
to noncontrolling interest |
|
(0.1 |
) |
|
|
0.2 |
|
|
|
|
|
| (Loss) income before income
taxes |
$ |
(17.5 |
) |
|
$ |
25.3 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
| Segment Operating
Adjusted EBITDA Margin |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
| Infrastructure Solutions |
|
11.6 |
% |
|
|
11.7 |
% |
|
(10) bps |
|
|
| Materials Solutions |
|
8.4 |
% |
|
|
10.0 |
% |
|
(160) bps |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.Condensed
Consolidated Balance Sheets(In
millions; unaudited) |
| |
| |
September 30, 2024 |
|
December 31, 2023 |
|
Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash, cash equivalents and restricted cash |
$ |
55.3 |
|
|
$ |
63.2 |
|
|
Investments |
|
3.6 |
|
|
|
5.7 |
|
|
Trade receivables, contract assets and other receivables, net |
|
175.2 |
|
|
|
152.7 |
|
|
Inventories, net |
|
466.4 |
|
|
|
455.6 |
|
|
Other current assets, net |
|
39.6 |
|
|
|
42.3 |
|
|
Total current assets |
|
740.1 |
|
|
|
719.5 |
|
|
Property, plant and equipment, net |
|
185.3 |
|
|
|
187.6 |
|
| Other
long-term assets |
|
141.7 |
|
|
|
152.2 |
|
| Total
assets |
$ |
1,067.1 |
|
|
$ |
1,059.3 |
|
| |
|
|
|
|
Liabilities |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ |
87.8 |
|
|
$ |
116.9 |
|
|
Customer deposits |
|
84.0 |
|
|
|
70.2 |
|
|
Other current liabilities |
|
127.4 |
|
|
|
111.9 |
|
|
Total current liabilities |
|
299.2 |
|
|
|
299.0 |
|
|
Long-term debt |
|
99.0 |
|
|
|
72.0 |
|
| Other
long-term liabilities |
|
37.5 |
|
|
|
34.6 |
|
| Total
equity |
|
631.4 |
|
|
|
653.7 |
|
| Total
liabilities and equity |
$ |
1,067.1 |
|
|
$ |
1,059.3 |
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows (In
millions; unaudited) |
| |
| |
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from operating activities: |
|
|
|
| Net
(loss) income |
$ |
(16.9 |
) |
|
$ |
18.8 |
|
|
Adjustments to reconcile net (loss) income to net cash used in
operating activities: |
|
|
|
|
Depreciation and amortization |
|
20.1 |
|
|
|
19.6 |
|
|
Provision for credit losses |
|
1.0 |
|
|
|
0.6 |
|
|
Provision for warranties |
|
12.8 |
|
|
|
14.4 |
|
|
Deferred compensation (benefit) expense |
|
(0.1 |
) |
|
|
0.2 |
|
|
Share-based compensation |
|
3.7 |
|
|
|
3.5 |
|
|
Deferred tax benefit |
|
(6.7 |
) |
|
|
(2.1 |
) |
|
Gain on disposition of property and equipment, net |
|
(1.1 |
) |
|
|
(3.1 |
) |
|
Goodwill impairment |
|
20.2 |
|
|
|
— |
|
|
Other impairment charges |
|
— |
|
|
|
0.8 |
|
|
Amortization of debt issuance costs |
|
0.2 |
|
|
|
0.2 |
|
|
Distributions to deferred compensation programs' participants |
|
(0.8 |
) |
|
|
(1.5 |
) |
|
Change in operating assets and liabilities: |
|
|
|
|
Purchase of trading securities, net |
|
(1.6 |
) |
|
|
(1.4 |
) |
|
Receivables and other contract assets |
|
(23.9 |
) |
|
|
(5.8 |
) |
|
Inventories |
|
(9.9 |
) |
|
|
(59.7 |
) |
|
Prepaid expenses |
|
2.8 |
|
|
|
8.3 |
|
|
Other assets |
|
(2.1 |
) |
|
|
(9.6 |
) |
|
Accounts payable |
|
(28.5 |
) |
|
|
7.1 |
|
|
Accrued loss reserves |
|
(0.3 |
) |
|
|
1.2 |
|
|
Accrued employee related liabilities |
|
(4.7 |
) |
|
|
9.3 |
|
|
Other accrued liabilities |
|
22.0 |
|
|
|
(0.8 |
) |
|
Accrued product warranty |
|
(14.1 |
) |
|
|
(9.6 |
) |
|
Customer deposits |
|
13.5 |
|
|
|
(8.2 |
) |
|
Income taxes payable/prepaid |
|
0.8 |
|
|
|
(1.0 |
) |
| Net
cash used in operating activities |
|
(13.6 |
) |
|
|
(18.8 |
) |
|
Cash flows from investing activities: |
|
|
|
|
Expenditures for property and equipment |
|
(16.0 |
) |
|
|
(25.0 |
) |
|
Proceeds from sale of property and equipment |
|
2.3 |
|
|
|
20.2 |
|
|
Purchase of investments |
|
(0.9 |
) |
|
|
(0.8 |
) |
|
Sale of investments |
|
0.6 |
|
|
|
1.7 |
|
| Net
cash used in investing activities |
|
(14.0 |
) |
|
|
(3.9 |
) |
| |
|
(Continued) |
|
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows
(Continued)(In millions; unaudited) |
| |
| |
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
Cash flows from financing activities: |
|
|
|
|
Payment of dividends |
|
(8.9 |
) |
|
|
(8.9 |
) |
|
Proceeds from borrowings on credit facilities and bank loans |
|
140.6 |
|
|
|
221.4 |
|
|
Repayments of borrowings on credit facilities and bank loans |
|
(111.9 |
) |
|
|
(180.2 |
) |
|
Sale of Company stock by deferred compensation programs, net |
|
0.2 |
|
|
|
0.1 |
|
|
Withholding tax paid upon vesting of share-based compensation
awards |
|
(0.5 |
) |
|
|
(1.6 |
) |
| Net cash provided by financing
activities |
|
19.5 |
|
|
|
30.8 |
|
| Effect of exchange rates on
cash |
|
0.2 |
|
|
|
(0.3 |
) |
| (Decrease) increase in cash,
cash equivalents and restricted cash |
|
(7.9 |
) |
|
|
7.8 |
|
| Cash, cash equivalents and
restricted cash, beginning of period |
|
63.2 |
|
|
|
66.0 |
|
| Cash, cash equivalents and
restricted cash, end of period |
$ |
55.3 |
|
|
$ |
73.8 |
|
| |
|
|
|
|
|
|
|
We present certain non-GAAP information that can
be useful in understanding our operating results and the
performance of our core business. We use both GAAP and non-GAAP
financial measures to establish internal budgets and targets and to
evaluate financial performance against such budgets and targets. We
exclude the costs and related tax effects, which are based on the
statutory tax rate applicable to each respective item unless
otherwise noted below, of the following items as we do not believe
they are indicative of our core business operations:
- Transformation program -
Incremental costs related to the execution of our ongoing strategic
transformation initiatives which may include personnel costs,
third-party consultant costs, duplicative systems usage fees,
administrative costs, accelerated depreciation and amortization on
certain long-lived assets and other similar type charges.
Transformation program initiatives include our multi-year phased
implementation of a standardized enterprise resource planning
system across the global organization and a lean manufacturing
initiative at one of our largest manufacturing sites that was
largely completed during 2023 with certain capital investments
finalized in early 2024. Transformation program costs for the lean
manufacturing initiative ceased at the end of 2023. These costs are
included in "Cost of sales" and "Selling, general and
administrative expenses", as appropriate, in the Consolidated
Statements of Operations.
- Restructuring and other related
charges - Charges related to restructuring activities which
primarily include personnel termination actions and reorganization
efforts to simplify and consolidate our operations. These
activities include the workforce reductions effected in the second
quarter of 2024, the termination of our previous Chief Executive
Officer, the limited overhead restructuring action implemented in
February 2023 and ongoing litigation costs for our exited Enid
location, including the settlement loss recorded in the third
quarter of 2024. These costs are recorded in "Restructuring,
impairment and other asset charges, net" in the Consolidated
Statements of Operations.
- Goodwill impairment - Goodwill
impairment charges, to the extent that they are experienced, are
recorded in "Goodwill impairment" in the Consolidated Statements of
Operations. These charges are associated with the impairment of the
goodwill allocated to the Materials Solutions reporting unit during
the second quarter of 2024. The goodwill impairment is largely
nondeductible for tax purposes and, as such, the tax impact applied
reflects the actual tax impact by jurisdiction.
- Asset impairment - Asset impairment
charges, to the extent that they are experienced, are recorded in
"Restructuring, impairment and other asset charges, net" in the
Consolidated Statements of Operations. These include charges
associated with abandoned in-process internally developed software
that was determined to be impaired during the second quarter of
2023.
- (Loss) gain on sale of property and
equipment, net - Gains or losses recognized on the disposal of
property and equipment that are recorded in "Restructuring,
impairment and other asset charges, net" in the Consolidated
Statements of Operations. We may sell or dispose of assets in the
normal course of our business operations as they are no longer
needed or used.
|
Astec Industries Inc.GAAP vs Non-GAAP
Adjusted Income from Operations Reconciliations(In
millions, except percentage data; unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net
sales |
$ |
291.4 |
|
|
$ |
303.1 |
|
|
$ |
946.1 |
|
|
$ |
1,001.0 |
|
| |
|
|
|
|
|
|
|
|
(Loss) income from operations |
$ |
(7.2 |
) |
|
$ |
(5.2 |
) |
|
$ |
(11.6 |
) |
|
$ |
29.7 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
8.7 |
|
|
|
7.8 |
|
|
|
26.4 |
|
|
|
22.8 |
|
|
Restructuring and other related charges |
|
8.4 |
|
|
|
0.1 |
|
|
|
9.4 |
|
|
|
7.6 |
|
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
Loss (gain) on sale of property and equipment, net |
|
— |
|
|
|
0.4 |
|
|
|
(1.1 |
) |
|
|
(3.1 |
) |
|
Adjusted income from operations |
$ |
9.9 |
|
|
$ |
3.1 |
|
|
$ |
43.3 |
|
|
$ |
57.8 |
|
|
Adjusted operating margin |
|
3.4 |
% |
|
|
1.0 |
% |
|
|
4.6 |
% |
|
|
5.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.GAAP vs Non-GAAP
Adjusted EPS Reconciliations(In millions, except
per share amounts; unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net
(loss) income attributable to controlling interest |
$ |
(6.2 |
) |
|
$ |
(6.6 |
) |
|
$ |
(16.8 |
) |
|
$ |
18.6 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
8.7 |
|
|
|
7.8 |
|
|
|
26.4 |
|
|
|
22.8 |
|
|
Restructuring and other related charges |
|
8.4 |
|
|
|
0.1 |
|
|
|
9.4 |
|
|
|
7.6 |
|
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
Loss (gain) on sale of property and equipment, net |
|
— |
|
|
|
0.4 |
|
|
|
(1.1 |
) |
|
|
(3.1 |
) |
|
Income tax impact of adjustments |
|
(3.9 |
) |
|
|
(1.9 |
) |
|
|
(9.3 |
) |
|
|
(6.5 |
) |
|
Adjusted net income (loss) attributable to controlling
interest |
$ |
7.0 |
|
|
$ |
(0.2 |
) |
|
$ |
28.8 |
|
|
$ |
40.2 |
|
| |
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.27 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.74 |
) |
|
$ |
0.82 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
0.38 |
|
|
|
0.34 |
|
|
|
1.16 |
|
|
|
1.00 |
|
|
Restructuring and other related charges (a) |
|
0.37 |
|
|
|
— |
|
|
|
0.41 |
|
|
|
0.34 |
|
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
0.89 |
|
|
|
— |
|
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
Loss (gain) on sale of property and equipment, net |
|
— |
|
|
|
0.02 |
|
|
|
(0.05 |
) |
|
|
(0.14 |
) |
|
Income tax impact of adjustments |
|
(0.17 |
) |
|
|
(0.08 |
) |
|
|
(0.41 |
) |
|
|
(0.29 |
) |
|
Adjusted EPS |
$ |
0.31 |
|
|
$ |
(0.01 |
) |
|
$ |
1.26 |
|
|
$ |
1.77 |
|
|
(a) Calculation includes the impact of a rounding adjustment |
|
|
|
Astec Industries Inc.EBITDA and Adjusted
EBITDA Reconciliations(In millions, except
percentage data; unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net sales |
$ |
291.4 |
|
|
$ |
303.1 |
|
|
$ |
946.1 |
|
|
$ |
1,001.0 |
|
| |
|
|
|
|
|
|
|
| Net
(loss) income attributable to controlling interest |
$ |
(6.2 |
) |
|
$ |
(6.6 |
) |
|
$ |
(16.8 |
) |
|
$ |
18.6 |
|
|
Interest expense, net |
|
2.1 |
|
|
|
1.9 |
|
|
|
6.9 |
|
|
|
4.9 |
|
|
Depreciation and amortization |
|
7.0 |
|
|
|
7.1 |
|
|
|
20.1 |
|
|
|
19.6 |
|
|
Income tax (benefit) provision |
|
(2.3 |
) |
|
|
(0.6 |
) |
|
|
(0.6 |
) |
|
|
6.5 |
|
|
EBITDA |
|
0.6 |
|
|
|
1.8 |
|
|
|
9.6 |
|
|
|
49.6 |
|
|
EBITDA margin |
|
0.2 |
% |
|
|
0.6 |
% |
|
|
1.0 |
% |
|
|
5.0 |
% |
| |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Transformation program |
|
8.4 |
|
|
|
7.7 |
|
|
|
25.8 |
|
|
|
22.5 |
|
|
Restructuring and other related charges |
|
8.4 |
|
|
|
0.1 |
|
|
|
9.4 |
|
|
|
7.6 |
|
|
Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
|
Asset impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.8 |
|
|
Loss (gain) on sale of property and equipment, net |
|
— |
|
|
|
0.4 |
|
|
|
(1.1 |
) |
|
|
(3.1 |
) |
|
Adjusted EBITDA |
$ |
17.4 |
|
|
$ |
10.0 |
|
|
$ |
63.9 |
|
|
$ |
77.4 |
|
|
Adjusted EBITDA margin |
|
6.0 |
% |
|
|
3.3 |
% |
|
|
6.8 |
% |
|
|
7.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc.Free Cash Flow
Reconciliation(In millions;
unaudited) |
| |
| |
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
| Net cash provided by (used in)
operating activities |
$ |
22.5 |
|
|
$ |
(16.3 |
) |
|
$ |
(13.6 |
) |
|
$ |
(18.8 |
) |
| Expenditures for property and
equipment |
|
(2.6 |
) |
|
|
(7.9 |
) |
|
|
(16.0 |
) |
|
|
(25.0 |
) |
| Free cash flow |
$ |
19.9 |
|
|
$ |
(24.2 |
) |
|
$ |
(29.6 |
) |
|
$ |
(43.8 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 10월(10) 2024 으로 11월(11) 2024
Astec Industries (NASDAQ:ASTE)
과거 데이터 주식 차트
부터 11월(11) 2023 으로 11월(11) 2024
