CHATTANOOGA, Tenn., July 21, 2015 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their second quarter ended June 30, 2015.
Net sales for the second quarter of 2015 were $268.0 million compared to $277.3 million for the second quarter of 2014, a 3% decrease. Earnings for the second quarter of 2015 were $11.8 million or $0.51 per diluted share compared to $14.5 million or $0.63 per diluted share for the second quarter of 2014, a decrease of 19%.
Domestic sales increased 5% to $194.6 million for the second quarter of 2015 from $184.7 million for the second quarter of 2014. International sales were $73.4 million for the second quarter of 2015 compared to $92.6 million for the second quarter of 2014, a decrease of 21%.
Net sales for the first half of 2015 were $556.8 million compared to $515.9 million for the first half of 2014, an 8% increase. Earnings for the first half of 2015 were $26.9 million or $1.16 per diluted share compared to $24.0 million or $1.04 per diluted share for the first half of 2014, an increase of 12%.
Domestic sales increased 13% to $405.7 million for the first half of 2015 from $360.1 million for the first half of 2014. International sales were $151.1 million for the first half of 2015 compared to $155.8 million for the first half of 2014, a decrease of 3%.
The Company’s domestic backlog increased 9%, from $157.4 million at June 30, 2014 to $172.0 million at June 30, 2015. The international backlog at June 30, 2015 decreased 46% to $57.5 million compared to the June 30, 2014 international backlog of $106.7 million.
Consolidated financial information for the second quarter and six months ended June 30, 2015 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, “While we are disappointed with our second quarter results, we are pleased with our performance for the first half with sales up 8% and earnings up 12% over the first half of last year.”
Mr. Brock continued, “Although the strong US dollar has hampered our international sales and backlog, we remain committed to our international sales effort and we will continue to develop new products for targeted global markets. With regard to our domestic market, we are encouraged that our infrastructure equipment customers have good backlogs of work overall, particularly in the private sector, and we are optimistic that our federal government will pass a long-term highway bill with increased funding by year end. This bill will provide the visibility that our customers need in order to increase their capital spending on equipment. In the meantime, we have seen the efforts in some states to fund highway projects through their own new funding mechanisms start to show up in the form of new project proposals and bids in those states.”
Mr. Brock concluded, “Despite the current headwinds in our international sales we are in a position to improve on last year’s third quarter results which will put us in a position to finish this year ahead of 2014’s full year results.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 21, 2015 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 4, 2015 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13614127. 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, future federal highway funding and efforts to improve international sales. 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 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, 2014.
For Additional Information Contact:
Benjamin G. Brock
Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: bbrock@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
| Astec Industries, Inc. | ||||||||||||
| Condensed Consolidated Balance Sheets | ||||||||||||
| (in thousands) | ||||||||||||
| (unaudited) | ||||||||||||
| June 30 | June 30 | |||||||||||
| 2015 | 2014 | |||||||||||
| Assets | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 16,353 | $ | 18,624 | ||||||||
| Investments | 2,726 | 1,375 | ||||||||||
| Receivables, net | 118,248 | 119,694 | ||||||||||
| Inventories | 382,841 | 364,098 | ||||||||||
| Prepaid expenses and other | 46,569 | 32,582 | ||||||||||
| Total current assets | 566,737 | 536,373 | ||||||||||
| Property and equipment, net | 174,971 | 193,552 | ||||||||||
| Other assets | 62,083 | 73,214 | ||||||||||
| Total assets | $ | 803,791 | $ | 803,139 | ||||||||
| Liabilities and equity | ||||||||||||
| Current liabilities | ||||||||||||
| Accounts payable - trade | $ | 52,471 | $ | 57,592 | ||||||||
| Other current liabilities | 92,412 | 102,440 | ||||||||||
| Total current liabilities | 144,883 | 160,032 | ||||||||||
| Non-current liabilities | 39,718 | 39,188 | ||||||||||
| Total equity | 619,190 | 603,919 | ||||||||||
| Total liabilities and equity | $ | 803,791 | $ | 803,139 | ||||||||
| Astec Industries, Inc. | ||||||||||||
| Condensed Consolidated Statements of Income | ||||||||||||
| (in thousands, except per share data) | ||||||||||||
| (unaudited) | ||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||
| June 30 | June 30 | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Net sales | $ | 268,042 | $ | 277,256 | $ | 556,791 | $ | 515,929 | ||||
| Cost of sales | 205,809 | 215,078 | 428,512 | 396,994 | ||||||||
| Gross profit | 62,233 | 62,178 | 128,279 | 118,935 | ||||||||
| Selling, general, administrative & engineering expenses | 43,308 | 40,247 | 87,112 | 83,672 | ||||||||
| Income from operations | 18,925 | 21,931 | 41,167 | 35,263 | ||||||||
| Interest expense | 420 | 109 | 717 | 182 | ||||||||
| Other | 420 | 736 | 2,368 | 1,550 | ||||||||
| Income before income taxes | 18,925 | 22,558 | 42,818 | 36,631 | ||||||||
| Income taxes | 7,120 | 8,061 | 15,909 | 12,589 | ||||||||
| Net income attributable to controlling interest | $ | 11,805 | $ | 14,497 | $ | 26,909 | $ | 24,042 | ||||
| Earnings per Common Share | ||||||||||||
| Net income attributable to controlling interest | ||||||||||||
| Basic | $ | 0.51 | $ | 0.64 | $ | 1.17 | $ | 1.05 | ||||
| Diluted | $ | 0.51 | $ | 0.63 | $ | 1.16 | $ | 1.04 | ||||
| Weighted average common shares outstanding | ||||||||||||
| Basic | 22,942 | 22,822 | 22,923 | 22,804 | ||||||||
| Diluted | 23,119 | 23,099 | 23,117 | 23,101 | ||||||||
| Astec Industries, Inc. | ||||||||||||||||
| Segment Revenues and Profits | ||||||||||||||||
| For the three months ended June 30, 2015 and 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Corporate | Total | ||||||||||||
| 2015 Revenues | 116,097 | 98,829 | 53,116 | - | 268,042 | |||||||||||
| 2014 Revenues | 118,585 | 106,691 | 51,980 | - | 277,256 | |||||||||||
| Change $ | (2,488 | ) | (7,862 | ) | 1,136 | - | (9,214 | ) | ||||||||
| Change % | (2.1 | )% | (7.4 | )% | 2.2 | % | - | (3.3 | )% | |||||||
| 2015 Gross Profit | 27,242 | 24,985 | 9,998 | 8 | 62,233 | |||||||||||
| 2015 Gross Profit % | 23.5 | % | 25.3 | % | 18.8 | % | - | 23.2 | % | |||||||
| 2014 Gross Profit | 25,089 | 25,694 | 11,390 | 5 | 62,178 | |||||||||||
| 2014 Gross Profit % | 21.2 | % | 24.1 | % | 21.9 | % | - | 22.4 | % | |||||||
| Change | 2,153 | (709 | ) | (1,392 | ) | 3 | 55 | |||||||||
| 2015 Profit (Loss) | 11,845 | 10,056 | 701 | (10,334 | ) | 12,268 | ||||||||||
| 2014 Profit (Loss) | 11,808 | 11,158 | 2,946 | (11,323 | ) | 14,589 | ||||||||||
| Change $ | 37 | (1,102 | ) | (2,245 | ) | 989 | (2,321 | ) | ||||||||
| Change % | 0.3 | % | (9.9 | )% | (76.2 | )% | 8.7 | % | (15.9 | )% | ||||||
| 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 | ||||||||||||||||
| 2015 | 2014 | Change $ | ||||||||||||||
| Total profit for all segments | $ | 12,268 | $ | 14,589 | $ | (2,321 | ) | |||||||||
| Elimination of intersegment profit | (610 | ) | (99 | ) | (511 | ) | ||||||||||
| Net loss attributable to non-controlling interest | 147 | 7 | 140 | |||||||||||||
| Net income attributable to controlling interest | $ | 11,805 | $ | 14,497 | $ | (2,692 | ) | |||||||||
| Astec Industries, Inc. | ||||||||||||||||
| Segment Revenues and Profits | ||||||||||||||||
| For the six months ended June 30, 2015 and 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Corporate | Total | ||||||||||||
| 2015 Revenues | 251,143 | 205,241 | 100,407 | - | 556,791 | |||||||||||
| 2014 Revenues | 217,376 | 199,799 | 98,754 | - | 515,929 | |||||||||||
| Change $ | 33,767 | 5,442 | 1,653 | - | 40,862 | |||||||||||
| Change % | 15.5 | % | 2.7 | % | 1.7 | % | - | 7.9 | % | |||||||
| 2015 Gross Profit | 58,188 | 50,957 | 19,117 | 17 | 128,279 | |||||||||||
| 2015 Gross Profit % | 23.2 | % | 24.8 | % | 19.0 | % | - | 23.0 | % | |||||||
| 2014 Gross Profit | 47,768 | 49,119 | 22,032 | 16 | 118,935 | |||||||||||
| 2014 Gross Profit % | 22.0 | % | 24.6 | % | 22.3 | % | - | 23.1 | % | |||||||
| Change | 10,420 | 1,838 | (2,915 | ) | 1 | 9,344 | ||||||||||
| 2015 Profit (Loss) | 27,356 | 21,650 | 864 | (22,300 | ) | 27,570 | ||||||||||
| 2014 Profit (Loss) | 20,604 | 20,259 | 4,870 | (20,441 | ) | 25,292 | ||||||||||
| Change $ | 6,752 | 1,391 | (4,006 | ) | (1,859 | ) | 2,278 | |||||||||
| Change % | 32.8 | % | 6.9 | % | (82.3 | )% | (9.1 | )% | 9.0 | % | ||||||
| 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 | ||||||||||||||||
| 2015 | 2014 | Change $ | ||||||||||||||
| Total profit for all segments | $ | 27,570 | $ | 25,292 | $ | 2,278 | ||||||||||
| Elimination of intersegment profit | (996 | ) | (1,256 | ) | 260 | |||||||||||
| Net loss attributable to non-controlling interest | 335 | 6 | 329 | |||||||||||||
| Net income attributable to controlling interest | $ | 26,909 | $ | 24,042 | $ | 2,867 | ||||||||||
| Astec Industries, Inc. | ||||||||||||||||
| Backlog by Segment | ||||||||||||||||
| June 30, 2015 and 2014 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Total | |||||||||||||
| 2015 Backlog | 106,376 | 74,445 | 48,653 | 229,474 | ||||||||||||
| 2014 Backlog | 109,380 | 89,147 | 65,568 | 264,095 | ||||||||||||
| Change $ | (3,004 | ) | (14,702 | ) | (16,915 | ) | (34,621 | ) | ||||||||
| Change % | (2.7 | )% | (16.5 | )% | (25.8 | )% | (13.1 | )% | ||||||||