Astec Industries Reports First Quarter 2015 Results
April 21 2015 - 7:00AM
Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their first quarter ended March 31, 2015.
Net sales for the first quarter of 2015 were $288.7 million
compared to $238.7 million for the first quarter of 2014, a 21%
increase. Earnings for the first quarter of 2015 were $15.1 million
or $0.65 per diluted share compared to $9.5 million for the first
quarter of 2014 or $0.41 per diluted share, an increase of 59% per
diluted share.
Domestic sales increased 20% to $211.0 million for the first
quarter of 2015 from $175.5 million for the first quarter of 2014.
International sales were $77.7 million for the first quarter of
2015 compared to $63.2 million for the first quarter of 2014, an
increase of 23%.
The Company's backlog decreased 6% from $309.6 million at March
31, 2014 to $291.2 million at March 31, 2015. The domestic
backlog increased 2% from $197.3 million at March 31, 2014 to
$201.0 million at March 31, 2015. The international backlog at
March 31, 2015 was $90.2 million, a 20% decrease from the March 31,
2014 international backlog of $112.3 million.
Consolidated financial information for the first quarter ended
March 31, 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, "We were pleased with our results for
the first quarter. Our customers in the United States continue
to experience a good private construction market and states
continue to implement mechanisms to raise funds for highway funding
as Congress continues to struggle to develop and pass a long-term
highway bill. While we expect another short-term extension of
the current federal highway bill, we still believe there is a
desire in Washington to pass a long-term highway bill this
year."
Mr. Brock continued, "Our backlog was off 6% versus last
year. All of the decline was contained in international
backlog primarily due to the strength of the United States dollar
and the slowdown in mining globally. Despite our backlog being
down versus the first quarter of 2014, our backlog remains strong
and we are optimistic on our first half 2015. We remain
focused on growing and improving our international sales and we
will be in a good position when the currency exchange rates improve
and the global mining industry rebounds."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 21, 2015, 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 5, 2015 by dialing (877) 660-6853, or
(201) 612-7415 for international callers, Account #286, Conference
ID# 13606155. 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.
Astec Industries,
Inc. |
Consolidated Balance
Sheets |
(in
thousands) |
(unaudited) |
|
|
Mar 31 |
Mar 31 |
|
2015 |
2014 |
Assets |
|
|
Current assets |
|
|
Cash and cash equivalents |
$ 12,464 |
$ 44,969 |
Investments |
2,195 |
1,462 |
Receivables, net |
129,919 |
109,080 |
Inventories |
388,710 |
361,209 |
Prepaid expenses and other |
34,923 |
28,717 |
Total current assets |
568,211 |
545,437 |
Property and equipment, net |
184,922 |
187,895 |
Other assets |
60,940 |
41,372 |
Total assets |
$ 814,073 |
$ 774,704 |
Liabilities and equity |
|
|
Current liabilities |
|
|
Accounts payable - trade |
$ 66,220 |
$ 59,364 |
Other current liabilities |
99,631 |
93,596 |
Total current liabilities |
165,851 |
152,960 |
Non-current liabilities |
40,498 |
32,490 |
Total equity |
607,724 |
589,254 |
Total liabilities and equity |
$ 814,073 |
$ 774,704 |
|
|
Astec Industries,
Inc. |
Consolidated Statements
of Income |
(in thousands, except
per share data) |
(unaudited) |
|
|
Three Months Ended |
|
Mar 31 |
|
2015 |
2014 |
Net sales |
$ 288,748 |
$ 238,673 |
Cost of sales |
222,703 |
181,916 |
Gross profit |
66,045 |
56,757 |
Selling, general, administrative &
engineering expenses |
43,804 |
43,424 |
Income from operations |
22,241 |
13,333 |
Interest expense |
297 |
73 |
Other |
1,949 |
812 |
Income before income taxes |
23,893 |
14,072 |
Income taxes |
8,788 |
4,527 |
Net income attributable to controlling
interest |
$ 15,105 |
$ 9,545 |
|
|
|
|
|
|
Earnings per Common Share |
Net income attributable to
controlling interest |
Basic |
$ 0.66 |
$ 0.42 |
Diluted |
$ 0.65 |
$ 0.41 |
|
|
|
|
|
|
Weighted average common shares
outstanding |
Basic |
22,904 |
22,786 |
Diluted |
23,114 |
23,102 |
|
|
Astec Industries, Inc. |
Segment Revenues and
Profits |
For the three months ended
March 31, 2015 and 2014 |
(in thousands) |
(unaudited) |
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Corporate Group |
Total |
2015 Revenues |
135,045 |
106,412 |
47,291 |
-- |
288,748 |
2014 Revenues |
98,791 |
93,108 |
46,774 |
-- |
238,673 |
Change $ |
36,254 |
13,304 |
517 |
-- |
50,075 |
Change % |
36.7% |
14.3% |
1.1% |
-- |
21.0% |
|
|
|
|
|
|
2015 Gross Profit |
30,946 |
25,972 |
9,119 |
8 |
66,045 |
2015 Gross Profit % |
22.9% |
24.4% |
19.3% |
-- |
22.9% |
2014 Gross Profit |
22,679 |
23,424 |
10,642 |
12 |
56,757 |
2014 Gross Profit % |
23.0% |
25.2% |
22.8% |
-- |
23.8% |
Change |
8,267 |
2,548 |
(1,523) |
(4) |
9,288 |
|
|
|
|
|
|
2015 Profit (Loss) |
15,511 |
11,594 |
163 |
(11,965) |
15,303 |
2014 Profit (Loss) |
8,796 |
9,101 |
1,923 |
(9,117) |
10,703 |
Change $ |
6,715 |
2,493 |
(1,760) |
(2,848) |
4,600 |
Change % |
76.3% |
27.4% |
(91.5%) |
(31.2%) |
43.0% |
|
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): |
|
|
|
|
Three months ended March
31 |
|
|
2015 |
2014 |
Change $ |
Total profit for all segments |
|
$ 15,303 |
$ 10,703 |
$ 4,600 |
Elimination of intersegment
profit |
(386) |
(1,156) |
770 |
Net (income) loss attributable to
non-controlling interest |
188 |
(2) |
190 |
Net income attributable to
controlling interest |
$ 15,105 |
$ 9,545 |
$ 5,560 |
|
|
Astec Industries, Inc. |
Backlog by Segment |
March 31, 2015 and 2014 |
(in thousands) |
(unaudited) |
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
2015 Backlog |
127,029 |
77,529 |
86,610 |
291,168 |
2014 Backlog |
144,598 |
108,832 |
56,135 |
309,565 |
Change $ |
(17,569) |
(31,303) |
30,475 |
(18,397) |
Change % |
(12.2%) |
(28.8%) |
54.3% |
(5.9%) |
CONTACT: For Additional Information Contact:
Benjamin G. Brock
President & 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
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