Astec Industries Reports Second Quarter 2014 Results

By GlobeNewswire,  July 22, 2014, 07:00:00 AM EDT


CHATTANOOGA, Tenn., July 22, 2014 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their second quarter ended June 30, 2014.

Net sales for the second quarter of 2014 were $277.3 million compared to $248.1 million for the second quarter of 2013, a 12% increase. Earnings for the second quarter of 2014 were $14.5 million or $0.63 per diluted share compared to $11.1 million or $0.48 per diluted share for the second quarter of 2013, an increase of 31%.

Domestic sales increased 14% to $184.7 million for the second quarter of 2014 from $162.3 million for the second quarter of 2013. International sales were $92.6 million for the second quarter of 2014 compared to $85.8 million for the second quarter of 2013, an increase of 8%.

Net sales for the first half of 2014 were $515.9 million compared to $496.0 million for the first half of 2013, a 4% increase. Earnings for the first half of 2014 were $24.0 million or $1.04 per diluted share compared to $24.3 million or $1.05 per diluted share for the first half of 2013, a decrease of 1% per diluted share.

Domestic sales increased 11% to $360.1 million for the first half of 2014 from $324.3 million for the first half of 2013. International sales were $155.8 million for the first half of 2014 compared to $171.7 million for the first half of 2013, a decrease of 9%.

The Company's domestic backlog increased 12%, from $140.7 million at June 30, 2013 to $157.4 million at June 30, 2014. The international backlog at June 30, 2014 remained flat at $106.7 million, when compared to the June 30, 2013 international backlog of $106.6 million.

Consolidated financial information for the second quarter ended June 30, 2014 and additional information related to segment revenues and profits are attached as addenda to this press release.

Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, "We are pleased with our performance during the second quarter. Both domestic and international sales increased during the quarter compared to our second quarter last year. Our total backlog is up 7% over June 30 of last year. We grew revenues and profits in each of our manufacturing segments on a quarterly and year-to-date basis."

Mr. Brock continued, "While we are up on sales and profit versus last year, we are cautious regarding our short-term prospects, particularly as they relate to infrastructure spending. Washington continues to pursue short-term extensions in lieu of a long-term funding bill that would provide visibility to our customers for their capital spending. We are seeing improved private markets for our customers and some states have new policies in place to help with funding of highway projects. That being said, we look forward to improving market conditions as our energy, aggregate, and mining businesses see stable to slightly better business in the near term."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 22, 2014 at 10:00 A.M. Eastern Time to review its second quarter results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.

The company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec's conference call will be available online at the Company's website: www.astecindustries.com/conferencecalls. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Tuesday, August 5, 2014 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13586221. A transcription 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. is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. Astec's manufacturing operations are divided into three primary business segments: road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels, biomass production, 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 its backlog, anticipated federal infrastructure spending and new state funding policies. 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, rising oil and liquid asphalt prices, rising steel prices, the effect of any future federal stimulus package, 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, 2013.

Astec Industries, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
   
  June 30 June 30
  2014 2013
Assets    
Current assets    
Cash and cash equivalents  $ 18,624  $ 41,157
Investments  1,375  16,989
Receivables, net  119,694  102,795
Inventories  364,098  322,770
Prepaid expenses and other  32,423  30,177
Total current assets  536,214  513,888
Property and equipment, net  193,552  185,033
Other assets  73,214  41,954
Total assets  $ 802,980  $ 740,875
Liabilities and equity    
Current liabilities    
Accounts payable - trade  $ 57,592  $ 45,776
Other current liabilities  102,281  93,803
Total current liabilities  159,873  139,579
Non-current liabilities  39,188  32,531
Total equity  603,919  568,765
Total liabilities and equity  $ 802,980  $ 740,875
 
Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
         
  Three Months Ended Six Months Ended
  June 30 June 30
  2014 2013 2014 2013
Net sales  $ 277,256  $ 248,127  $ 515,929  $ 495,960
Cost of sales  215,078  192,685  396,994  381,951
Gross profit  62,178  55,442  118,935  114,009
Selling, general, administrative & engineering expenses  40,247  37,795  83,672  78,162
Income from operations  21,931  17,647  35,263  35,847
Interest expense  109  76  182  147
Other  736  (29)  1,550  644
Income before income taxes  22,558  17,542  36,631  36,344
Income taxes  8,061  6,450  12,589  12,081
Net income attributable to controlling interest  $ 14,497  $ 11,092  $ 24,042  $ 24,263
         
         
         
         
Earnings per Common Share        
Net income attributable to controlling interest        
Basic  $ 0.64  $ 0.49  $ 1.05  $ 1.07
Diluted  $ 0.63  $ 0.48  $ 1.04  $ 1.05
         
         
Weighted average common shares outstanding        
Basic  22,822  22,752  22,804  22,738
Diluted  23,099  23,069  23,101  23,075
 
Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended June 30, 2014 and 2013
(in thousands)
(unaudited)
  Infrastructure

Group
Aggregate and Mining

Group
Energy

Group


Corporate


Total
2014 Revenues  118,585  106,691  51,980  --  277,256
2013 Revenues  103,754  99,884  44,489  --  248,127
Change $  14,831  6,807  7,491  --  29,129
Change % 14.3% 6.8% 16.8%  -- 11.7%
           
2014 Gross Profit  25,089  25,694  11,390  5  62,178
2014 Gross Profit % 21.2% 24.1% 21.9%  -- 22.4%
2013 Gross Profit  19,514  25,615  10,311  2  55,442
2013 Gross Profit % 18.8% 25.6% 23.2%  -- 22.3%
Change  5,575  79  1,079  3  6,736
           
2014 Profit (Loss)  11,808  11,158  2,946  (11,323)  14,589
2013 Profit (Loss)  6,103  11,141  2,235  (8,190)  11,289
Change $  5,705  17  711  (3,133)  3,300
Change % 93.5% 0.2% 31.8% (38.3%) 29.2%

Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):

    Three months ended June 30
    2014 2013 Change $
Total profit for all segments  $ 14,589  $ 11,289  $ 3,300
Elimination of intersegment profit  (99)  (136)  37
Net income attributable to non-controlling interest  7  (61)  68
Net income attributable to controlling interest  $ 14,497  $ 11,092  $ 3,405
 
Astec Industries, Inc.
Segment Revenues and Profits
For the six months ended June 30, 2014 and 2013
(in thousands)
(unaudited)
  Infrastructure

Group
Aggregate and Mining

Group
Energy

Group


Corporate


Total
2014 Revenues  217,376  199,799  98,754  --  515,929
2013 Revenues  213,074  190,646  92,240  --  495,960
Change $  4,302  9,153  6,514  --  19,969
Change % 2.0% 4.8% 7.1%  -- 4.0%
           
2014 Gross Profit  47,768  49,119  22,032  16  118,935
2014 Gross Profit % 22.0% 24.6% 22.3%  -- 23.1%
2013 Gross Profit  46,199  48,655  19,155  --  114,009
2013 Gross Profit % 21.7% 25.5% 20.8%  -- 23.0%
Change  1,569  464  2,877  16  4,926
           
2014 Profit (Loss)  20,604  20,259  4,870  (20,441)  25,292
2013 Profit (Loss)  18,981  20,198  3,426  (17,450)  25,155
Change $  1,623  61  1,444  (2,991)  137
Change % 8.6% 0.3% 42.1% (17.1%) 0.5%

Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands):

    Six months ended June 30
    2014 2013 Change $
Total profit for all segments  $ 25,292  $ 25,155  $ 137
Elimination of intersegment profit  (1,256)  (752)  (504)
Net income attributable to non-controlling interest  6  (140)  146
Net income attributable to controlling interest  $ 24,042  $ 24,263  $ (221)
 
Astec Industries, Inc.
Backlog by Segment
June 30, 2014 and 2013
(in thousands)
(Unaudited)
  Infrastructure

Group
Aggregate and Mining

Group
Energy

Group
Total
2014 Backlog  109,380  89,147  65,568  264,095
2013 Backlog  99,605  95,343  52,312  247,260
Change $  9,775  (6,196)  13,256  16,835
Change % 9.8% (6.5%) 25.3% 6.8%
CONTACT: For Additional Information Contact:
         Benjamin G. Brock
         President & Chief Executive Officer
         Phone: (423) 867-4210
         Fax: (423) 867-4127
         E-mail: dbrock@astecindustries.com
         or
         David C. Silvious
         Vice President and Chief Financial Officer
         Phone: (423) 899-5898
         Fax: (423) 899-4456
         E-mail: dsilvious@astecindustries.com
         or
         Stephen C. Anderson
         Vice President, Director of Investor Relations & Corporate Secretary
         Phone: (423) 899-5898
         Fax: (423) 899-4456
         E-mail: sanderson@astecindustries.com
Source: Astec Industries, Inc.

This article appears in: News Headlines

Referenced Stocks: ASTE


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