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Astec Industries (ASTE)
Q3 2013 Earnings Call
October 22, 2013 10:00 am ET
Stephen C. Anderson - Vice President of Administration, Director of Investor Relations and Secretary
David C. Silvious - Chief Financial Officer, Vice President and Treasurer
James Don Brock - Chairman of The Board and Chairman of Executive Committee
Benjamin G. Brock - Chief Executive Officer, President and Director
Brian D. Brophy - Robert W. Baird & Co. Incorporated, Research Division
Morris Ajzenman - Griffin Securities, Inc., Research Division
Jason Ursaner - CJS Securities, Inc.
Ted Grace - Susquehanna Financial Group, LLLP, Research Division
Nicholas A. Coppola - Thompson Research Group, LLC
Lawrence T. De Maria - William Blair & Company L.L.C., Research Division
Brian Gary Rafn - Morgan Dempsey Capital Management, LLC
Previous Statements by ASTE
» Astec Industries, Inc. (ASTE) Management Discusses Q2 2013 Results - Earnings Call Transcript
» Astec Industries Management Discusses Q1 2013 Results - Earnings Call Transcript
» Astec Industries Management Discusses Q4 2012 Results - Earnings Call Transcript
Stephen C. Anderson
Good morning, and welcome to the Astec Industries conference call for the third quarter ended September 30, 2013. As Rob mentioned, my name is Steve Anderson, and I'm the Vice President of Administration, Secretary, Director of Investor Relations for the company. Also on today's call are Dr. J. Don Brock, our Chairman and Chief Executive Officer; Ben Brock, Vice President of our Asphalt Group and President of Astec Inc.; and David Silvious, our Chief Financial Officer. In just a moment, I'll turn the call over to David to summarize our financial results, and then to Don and Ben to review business activity during the third quarter.
Before we begin, I'll remind you that our discussion this morning may contain forward-looking statements that relate to the future performance of the company, and that these statements are intended to qualify for the Safe Harbor liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and are subject to certain risks, certain uncertainties and assumptions. Factors that can influence our results are highlighted in today's financial news release and others are contained in our annual report and our filings with the SEC.
As usual, we ask that you familiarize yourself with those factors. At this point, I'll turn the call over to David to summarize our financial results for the third quarter of 2013. David?
David C. Silvious
All right. Thank you, Steve, and good morning, everyone. Net sales for the quarter were $213.2 million versus $218.4 million in the Q3 of '12, that's a decrease of 2.4% or $5.2 million. International sales for the third quarter of '13 were $80.8 million compared to $84.4 million for the third quarter of '12. That's a decrease of 4.3% or $3.6 million. International sales represented 37.9% of Q3 '13 sales compared to 38.6% of Q3 '12 sales. The decrease in international sales for Q3 compared to Q3 of '12 occurred primarily in Europe, Canada, South America, including Brazil, and Africa and the Middle East. These decreases were offset primarily by increases in the post-Soviet states.
Domestic sales for the third quarter of '13 was $132.4 million compared to $134 million in Q3 of '12. That's a decrease of 1.2% or $1.6 million. Domestic sales were 62.1% of Q3 '13 sales compared to 61.4% of Q3 '12 sales.
Parts sales for Q3 of '13 were $59.4 million compared to $54.8 million for Q3 of '12. That's an 8.4% increase or $4.6 million. Parts sales were 27.9% of the quarterly sales in Q3 of '13 versus 25.1% of the quarterly sales for Q3 of '12.
In parts sales, Aggregate and Mining Group had the largest dollar increase, followed by the Mobile Asphalt Paving Group for the quarter. The Asphalt Group and the Underground Group had small decreases.
Segment revenues for the third quarter of '13 are attached to your press release. Net sales on a year-to-date basis were $709.1 million compared to $708.6 million for 2012. That's an increase of just 0.1% or $0.5 million. International sales were $252.5 million on a year-to-date basis in '13 compared to $265.1 million in 2012. That is a decrease of 4.8% or $12.6 million. Decreases in dollars for the international sales occurred primarily in Canada, Australia, South America, including Brazil, and Europe. And these were offset by increases in Africa, the post-Soviet states, Russia, the West Indies and Mexico. International sales were 35.6% of net sales year-to-date '13 compared to 37.4% year-to-date 2012.
2013 segments, if you look at international sales on a year-to-date basis, international sales decreased for all segments across-the-board except for the Underground Group. Domestic sales on a year-to-date basis were $456.6 million compared to year-to-date 2012. Domestic sales of $443.5 million, that's a $13.1 million increase or a 3% increase. Year-to-date 2013 domestic sales are 64.4% of 2013's total sales compared to 62.6% of total sales for year-to-date 2012. Parts sales on a year-to-date basis were $190.2 million as compared to $187.7 million on a year-to-date basis last year. It's an increase of 1.3% or $2.5 million. Parts sales in '13 on a year-to-date basis represented 26.8% of total sales compared to 26.5% year-to-date in 2012. Our sales by segment for the year-to-date in the quarter are all attached to your press release.
Gross profit for the quarter in '13 was $45.8 million compared to $47.3 million last year. That is a decrease of $1.5 million or 3.2%. The gross profit percentage for the quarter was 21.5% compared to 21.7% for the same quarter in '12. We did have a negative change in the absorption variance. Our negative impact from underabsorbed overhead was about $2 million during the quarter compared to Q2 of -- Q3, sorry, of 2012.