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Astec Industries (ASTE)
Q4 2013 Earnings Call
February 25, 2014 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
Benjamin G. Brock - Chief Executive Officer, President and Director
John F. Kasprzak - BB&T Capital Markets, Research Division
Joseph M. Grabowski - Robert W. Baird & Co. Incorporated, Research Division
Jason Ursaner - CJS Securities, Inc.
Ted Grace - Susquehanna Financial Group, LLLP, Research Division
Walter S. Liptak - Global Hunter Securities, LLC, Research Division
Barry George Haimes - Sage Asset Management, LLC
Previous Statements by ASTE
» Astec Industries Management Discusses Q3 2013 Results - Earnings Call Transcript
» Astec Industries, Inc. (ASTE) Management Discusses Q2 2013 Results - Earnings Call Transcript
» Astec Industries Management Discusses Q1 2013 Results - Earnings Call Transcript
It is now my pleasure to introduce your host, Steve Anderson. Thank you. Mr. Anderson, you may begin.
Stephen C. Anderson
Thank you, Christine. Good morning, and welcome to the Astec Industries conference call for the fourth quarter and fiscal year that ended December 31, 2013. As Christine mentioned, my name is Steve Anderson, and I'm the Vice President of Administration and Secretary and Director of Investor Relations for the company. Also in today's call are Benjamin G. Brock, our President and Chief Executive Officer; Richard Dorris, Executive Vice President and Chief Operating Officer; 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 Ben to review our business activity during the fourth 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 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, uncertainties and assumptions. Factors that could 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 fourth quarter and the full year of 2013. David?
David C. Silvious
All right. Thanks, Steve. Thank you everyone for joining us this morning. I will run through the financial analysis quickly here.
For the quarter, our net sales were $223.9 million in Q4 of '13 compared to $227.6 million in Q4 of '12. That is a decrease of 1.6% or $3.7 million. International sales for the Q4 of '13 was $81.5 million compared to $98.6 million in Q4 of '12. Now that is a decrease of 17.4% or $17.1 million in international sales. International sales were 36.4% of our Q4 net sales compared to 43.3% of Q4 of '12 net sales. The decrease in international sales for Q4 of '13 compared to Q4 of '12 occurred primarily in Mexico, Australia, Africa, Asia, India and the Middle East. Those decreases in those geographic areas were offset primarily by increases in the post-Soviet states.
Domestic sales for the fourth quarter of '13 were $142.4 million compared to $129 million in the fourth quarter of '12. It's an increase of 10.4% or $13.4 million. Domestic sales were 63.6% of Q4 '13 net sales compared to 56.7% of Q4 of '12 net sales.
Parts sales for the fourth quarter of '13 were $56.8 million, and that compares to $58.1 million for the fourth quarter of '12. That's a 2.2% decrease or $1.3 million. Parts sales were 25.4% of quarterly sales in Q4 of '13 compared to 25.5% of net sales in Q4 of '12.
On a year-to-date basis, sales were $933 million compared to $936.3 million for 2012. That's just a slight decrease of $3.3 million. International sales on a year-to-date basis in '13 were $333.9 million compared to $363.8 million in 2012. That's a decrease of 8.2% or $29.9 million. The decrease on a year-to-date basis in international sales occurred primarily in Australia, Canada, Mexico, Europe, then Brazil and the rest of South America. These were offset by increases in the post-Soviet states in the West Indies and in Russia.
International sales were 35.8% of net sales on a year-to-date basis in '13 compared to 38.9% of sales on a year-to-date basis in 2012. Domestic sales on a year-to-date 2013 basis, were $599.1 million compared to $572.5 million in 2012. That's an increase of $26.6 million or 4.6%. Domestic sales were 64.2% of our overall net sales in '13 compared to 61.1% of our total sales in '12. Parts sales in 2013 were $246.9 million compared to $245.9 million in 2012. That's an increase of just 0.4% or $1 million. Parts sales for 2013 were 26.5% of total sales versus 26.3% of total sales in '12.
Of course all that information, all sales information for all the segments is located -- attached to your press release financial statements for both quarter and year-to-date.
Gross profit for the quarter was $47.3 million or -- compared to $48.3 million in Q4 of 2012. It's a decrease of $1 million or down 2.1%. Gross profit percentage then is 21.1% for Q4 of '13 versus 21.2% of Q4 in 2012, basically flat. The absorption variance in Q4 of 2013 was just over $7 million underabsorbed, and that compares to about the same number, $7.7 million underabsorbed in Q4 of '12. It's a positive change of $400,000 in absorption in Q4.