ASTE
$30.77
Astec Inds
$1.00
3.36%
Earnings Details
1st Quarter March 2019
Tuesday, April 23, 2019 7:00:00 AM
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Summary

Astec Inds Misses

Astec Inds (ASTE) reported 1st Quarter March 2019 earnings of $0.63 per share on revenue of $325.8 million. The consensus earnings estimate was $0.82 per share on revenue of $338.7 million. The Earnings Whisper number was $0.80 per share. Revenue grew 0.1% on a year-over-year basis.

Astec Industries Inc designs, engineers, manufactures and markets equipment and components used in road building, utility and related construction activities as well as other products.

Results
Reported Earnings
$0.63
Earnings Whisper
$0.80
Consensus Estimate
$0.82
Reported Revenue
$325.8 Mil
Revenue Estimate
$338.7 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Astec Industries Reports First Quarter 2019 Results

CHATTANOOGA, Tenn., April 23, 2019 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their first quarter ended March 31, 2019

Net sales for the first quarter of 2019 were $325.8 million compared to $325.5 million for the first quarter of 2018.  Domestic sales decreased 2.7% to $262.8 million for the first quarter of 2019 from $270.1 million for the first quarter of 2018.  International sales increased 13.7% to $63.0 million for the first quarter of 2019 from $55.4 million for the first quarter of 2018. 

Earnings for the first quarter of 2019 were $14.3 million or $0.63 per diluted share, compared to $20.3 million or $0.87 per diluted share in the first quarter of 2018, a decrease in earnings per share of 27.6%.  As adjusted for the impact of pellet plant activity in the first quarter of 2018, earnings per diluted share decreased $0.33 or 34.4%.

Commenting on the announcement of the quarterly results, Richard J. Dorris, Interim Chief Executive Officer, stated, “We are disappointed that our performance in the first quarter did not meet our expectations.  All three segments experienced pricing pressure from competitors in a tighter market and temporary weather related shutdowns at seven of our subsidiaries impacted our ability to build and ship equipment.” 

Mr. Dorris continued, “Lower than expected volumes impacted our gross margins at several of our subsidiaries.  As we’ve previously discussed, our SGA&E is also temporarily at a higher run rate than normal due to our ongoing strategic sourcing project.  Bookings were also affected by the weather as customers were unable to work in unusually wet or icy conditions in much of the U.S.”

The Company’s backlog at March 31, 2019 was $236.5 million, a decrease of $208.4 million or 46.8% compared to the March 31, 2018 backlog of $444.9 million.  Domestic backlog decreased 52.6% to $161.8 million at March 31, 2019 from $341.1 million at March 31, 2018.  The international backlog at March 31, 2019 was $74.7 million compared to $103.8 million at March 31, 2018, a decrease of 28.0%.  Adjusted for pellet plant backlog included in the March 31, 2018 backlog, the Company’s backlog decreased $143.8 million or 37.8%.

Mr. Dorris concluded, “While we are paying close attention to the decrease in our backlog, we note that we experienced historical high points in our backlogs in the first quarter of 2018.  We have already made a number of moves to adjust our capacity and, while we’ve seen some positive developments in recent order intake, we will continue to monitor the backlog and make adjustments where necessary.” 

Consolidated financial information for the first quarter ended March 31, 2019 and additional information related to segment revenues and profits are attached as addenda to this press release.

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on April 23, 2019, at 10:00 A.M. Eastern Time to review its first 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, May 7, 2019 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Replay ID# 47335.  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., (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling and concrete production. Astec's manufacturing operations are divided into three primary business segments: road building, (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels 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 (i) product demand and pricing pressure, (ii) the effect of its strategic sourcing project (iii) efforts to adjust manufacturing capacity, and (iv) its backlog activity. 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, oil, gas and liquid asphalt prices, rising steel prices, 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, 2018

For Additional Information Contact:

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

   
Astec Industries, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
 
 Mar 31Mar 31
  2019  2018 
Assets  
Current assets  
Cash and cash equivalents$  28,606 $  41,940 
Investments   1,589    1,751 
Receivables, net   137,211    153,854 
Inventories   366,835    411,159 
Prepaid expenses and other   41,832    23,533 
Total current assets   576,073    632,237 
Property and equipment, net   192,143    189,287 
Other assets   104,089    96,841 
Total assets$  872,305 $  918,365 
Liabilities and equity  
Current liabilities  
Accounts payable - trade$  76,451 $  68,833 
Other current liabilities   114,342    117,609 
Total current liabilities   190,793    186,442 
Long-term debt, less current maturities   56,629    1,357 
Non-current liabilities   25,617    22,490 
Total equity   599,266    708,076 
Total liabilities and equity$  872,305 $  918,365 
   
   
   
   
Astec Industries, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 
 Three Months Ended
 Mar 31
  2019  2018 
Net sales$  325,780 $  325,453 
Cost of sales   249,254    247,448 
Gross profit   76,526    78,005 
Selling, general, administrative & engineering expenses   58,348    52,078 
Income from operations   18,178    25,927 
Interest expense   (648)   (150)
Other   525    512 
Income before income taxes   18,055    26,289 
Income taxes   3,781    6,022 
Net income attributable to controlling interest $  14,274 $  20,267 
   
   
   
   
Earnings per Common Share  
Net income attributable to controlling interest  
  Basic$  0.63 $  0.88 
  Diluted$  0.63 $  0.87 
   
   
Weighted average common shares outstanding  
  Basic   22,498    23,045 
  Diluted   22,646    23,236 
   

 

Astec Industries, Inc. 
Segment Revenues and Profits 
For the three months ended March 31, 2019 and 2018 
(in thousands) 
(unaudited) 
 Infrastructure GroupAggregate and Mining
Group
Energy GroupCorporate GroupTotal 
2019 Revenues   154,994    106,531    64,255    -    325,780  
2018 Revenues   147,094    119,067    59,292    -    325,453  
Change $   7,900    (12,536)   4,963    -    327  
Change % 5.4% (10.5%) 8.4%   -  0.1% 
       
2019 Gross Profit   35,506    25,545    15,479    (4)  76,526  
2019 Gross Profit % 22.9% 24.0% 24.1%   -  23.5% 
2018 Gross Profit   33,280    29,289    15,286    150   78,005  
2018 Gross Profit % 22.6% 24.6% 25.8%   -  24.0% 
Change   2,226    (3,744)   193    (154)  (1,479) 
       
2019 Profit (Loss)   15,238    8,678    3,394    (13,469)  13,841  
2018 Profit (Loss)   14,852    13,110    4,611    (11,248)  21,325  
Change $   386    (4,432)   (1,217)   (2,221)  (7,484) 
Change % 2.6% (33.8%) (26.4%) (19.7%)(35.1%) 
       
       
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 March 31  
   2019  2018 Change $  
Total profit for all segments $  13,841 $  21,325 $  (7,484)  
Recapture (elimination) of intersegment profit   377    (1,109)   1,486   
Net loss attributable to non-controlling interest   56    51    5   
Net income attributable to controlling interest $  14,274 $  20,267 $  (5,993)  
       
       
       
       
Astec Industries, Inc.  
Backlog by Segment  
March 31, 2019 and 2018  
(in thousands)  
(unaudited)  
 Infrastructure GroupAggregate and Mining
Group
Energy GroupTotal  
2019 Backlog   80,553    103,640    52,355    236,548   
2018 Backlog   230,649    138,687    75,591    444,927   
Change $   (150,096)   (35,047)   (23,236)   (208,379)  
Change % (65.1%) (25.3%) (30.7%) (46.8%)  
2018 Pellet Backlog   64,600    -     -     64,600   
2018 Backlog as Adjusted   166,049    138,687    75,591    380,327   
As Adjusted Change $   (85,496)   (35,047)   (23,236)   (143,779)  
As Adjusted Change % (51.5%) (25.3%) (30.7%) (37.8%)  
       
       
       
       
Astec Industries, Inc.     
Reconciliation of GAAP EPS to EPS As Adjusted     
For the three months ended March 31, 2018     
(unaudited)     
Fully Diluted EPS$0.87      
EPS impact of Pellet Activity   0.09      
EPS As Adjusted$0.96      


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Source: Astec Industries, Inc.