Astec Industries, Inc. (Nasdaq:ASTE) today reported results for
their second quarter and year to date ended June 30, 2016.
Net sales for the second quarter of 2016 were
$294.4 million compared to $268.0 million for the second quarter of
2015, a 9.9% increase. Earnings for the second quarter of
2016 were $18.2 million or $0.79 per diluted share compared to
$11.8 million for the second quarter of 2015 or $0.51 per diluted
share, an increase of 54.9% per diluted share.
Domestic sales increased 24.5% to $242.2 million
for the second quarter of 2016 from $194.6 million for the second
quarter of 2015. International sales were $52.2 million for
the second quarter of 2016 compared to $73.4 million for the second
quarter of 2015, a decrease of 28.9%.
Net sales for the first half of 2016 were $573.1
million compared to $556.8 million for the first half of 2015, a
2.9% increase. Earnings for the first half of 2016 were $35.9
million or $1.55 per diluted share compared to $26.9 million for
the first half of 2015 or $1.16 per diluted share, an increase of
33.6% per diluted share.
Domestic sales increased 17.4% to $476.4 million
for the first half of 2016 from $405.7 million for the first half
of 2015. International sales were $96.7 million for the first
half of 2016 compared to $151.1 million for the first half of 2015,
a decrease of 36.0%.
The Company’s backlog increased 58.8% from
$229.5 million at June 30, 2015 to $364.5 million at June 30,
2016. The domestic backlog increased 80% from $172.0 million
at June 30, 2015 to $310.0 million at June 30, 2016. The
international backlog at June 30, 2016 was $54.5 million, a 5%
decrease from the June 30, 2015 international backlog of $57.5
million.
Consolidated financial information for the
second quarter ended June 30, 2016 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 second quarter. As our sales and backlog reflect,
our domestic business remained strong during the quarter. This is
primarily attributable to the increased demand caused by the
passage of a new Federal highway bill in December 2015 and
continuing good private sector activity.”
Mr. Brock continued, “Our backlog is up 58.8%
versus last year. The majority of the increase is in the
Infrastructure Group, again mainly as a result of the Federal
highway bill and the $122.5 million pellet plant order announced
during the first quarter. In contrast to the success of our
domestic business, we continued to face headwinds in all of our
groups with regard to our international business, primarily as a
result of the strong U.S. dollar. We also continue to be challenged
in our Aggregate and Mining Group as a result of the global mining
slow down. Finally, we remain challenged in our Energy Group
equipment sales in the oil and natural gas industries as prices for
these commodities remain at low levels.”
In closing, Mr. Brock commented, “We were
pleased to announce on July 7, 2016 our signed agreement to
purchase Power Flame Incorporated for $43 million, subject to final
due diligence and customary closing conditions. Power Flame
manufactures burners for industrial and commercial use, and is
recognized as an industry leader in technology, service, and market
share. We expect to close the acquisition of Power Flame
during the third quarter. We will discuss Power Flame in more
detail during our earnings call today.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 26,
2016, 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 9, 2016 by dialing
(877) 481-4010, or (919) 882-2331 for international callers,
Conference ID #10057. A transcript 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, wood pellet
production 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 low oil and gas prices, the global
mining slow down, the strong U.S. Dollar, and the impact of the
long-term highway bill in the United States. 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,
2015.
For Additional Information Contact: Benjamin G.
Brock Chief Executive Officer Phone: (423) 867-4210 Fax: (423)
867-4127 E-mail: bbrock@astecindustries.com orDavid C.
Silvious Vice President and Chief Financial OfficerPhone: (423)
899-5898Fax: (423) 899-4456 E-mail:
dsilvious@astecindustries.com or Stephen C. AndersonVice
President, Director of Investor Relations & Corporate
SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail:
sanderson@astecindustries.com
| |
|
|
|
|
| Astec Industries, Inc. |
|
|
| Condensed Consolidated Balance
Sheets |
|
|
| (in thousands) |
|
|
| (unaudited) |
|
|
| |
|
|
|
|
June 30 |
June 30 |
|
|
|
|
|
2016 |
|
|
2015 |
|
|
|
|
Assets |
|
|
|
|
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
68,473 |
|
$ |
16,353 |
|
|
|
|
Investments |
|
1,889 |
|
|
2,726 |
|
|
|
|
Receivables, net |
|
127,490 |
|
|
118,248 |
|
|
|
|
Inventories |
|
379,477 |
|
|
382,841 |
|
|
|
|
Prepaid expenses and other |
|
29,702 |
|
|
46,569 |
|
|
|
|
Total current assets |
|
607,031 |
|
|
566,737 |
|
|
|
|
Property and equipment, net |
|
173,080 |
|
|
174,971 |
|
|
|
|
Other assets |
|
66,517 |
|
|
62,083 |
|
|
|
|
Total assets |
$ |
846,628 |
|
$ |
803,791 |
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable - trade |
$ |
54,498 |
|
$ |
52,471 |
|
|
|
|
Other current liabilities |
|
124,720 |
|
|
92,412 |
|
|
|
|
Total current liabilities |
|
179,218 |
|
|
144,883 |
|
|
|
|
Non-current liabilities |
|
27,836 |
|
|
39,718 |
|
|
|
|
Total equity |
|
639,574 |
|
|
619,190 |
|
|
|
|
Total liabilities and equity |
$ |
846,628 |
|
$ |
803,791 |
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| 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 |
|
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
|
Net sales |
$ |
294,394 |
|
$ |
268,042 |
|
$ |
573,116 |
|
$ |
556,791 |
|
|
Cost of sales |
|
220,942 |
|
|
205,809 |
|
|
427,708 |
|
|
428,512 |
|
|
Gross profit |
|
73,452 |
|
|
62,233 |
|
|
145,408 |
|
|
128,279 |
|
|
Selling, general, administrative & engineering expenses |
|
44,961 |
|
|
43,308 |
|
|
88,766 |
|
|
87,112 |
|
|
Income from operations |
|
28,491 |
|
|
18,925 |
|
|
56,642 |
|
|
41,167 |
|
|
Interest expense |
|
326 |
|
|
420 |
|
|
793 |
|
|
717 |
|
|
Other |
|
327 |
|
|
420 |
|
|
935 |
|
|
2,368 |
|
|
Income before income taxes |
|
28,492 |
|
|
18,925 |
|
|
56,784 |
|
|
42,818 |
|
|
Income taxes |
|
10,300 |
|
|
7,120 |
|
|
20,849 |
|
|
15,909 |
|
|
Net income attributable to controlling interest |
$ |
18,192 |
|
$ |
11,805 |
|
$ |
35,935 |
|
$ |
26,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| Earnings
per Common Share |
|
|
|
|
| Net
income attributable to controlling interest |
|
|
|
|
|
Basic |
$ |
0.79 |
|
$ |
0.51 |
|
$ |
1.56 |
|
$ |
1.17 |
|
|
Diluted |
$ |
0.79 |
|
$ |
0.51 |
|
$ |
1.55 |
|
$ |
1.16 |
|
|
|
|
|
|
|
| |
|
|
|
|
| Weighted average common
shares outstanding |
|
|
|
|
|
Basic |
|
22,999 |
|
|
22,942 |
|
|
22,982 |
|
|
22,923 |
|
|
Diluted |
|
23,135 |
|
|
23,119 |
|
|
23,135 |
|
|
23,117 |
|
| |
|
|
|
|
| Astec Industries, Inc. |
|
| Segment Revenues and Profits |
|
| For the three months ended June 30, 2016 and 2015 |
|
| (in thousands) |
|
| (unaudited) |
|
|
|
Infrastructure Group |
Aggregate and MiningGroup |
Energy Group |
Corporate |
Total |
|
|
2016 Revenues |
|
152,476 |
|
|
99,085 |
|
|
42,833 |
|
|
- |
|
|
294,394 |
|
|
|
2015 Revenues |
|
116,097 |
|
|
98,829 |
|
|
53,116 |
|
|
- |
|
|
268,042 |
|
|
|
Change $ |
|
36,379 |
|
|
256 |
|
|
(10,283 |
) |
|
- |
|
|
26,352 |
|
|
|
Change % |
|
31.3 |
% |
|
0.3 |
% |
|
(19.4 |
%) |
|
- |
|
|
9.8 |
% |
|
|
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
36,583 |
|
|
26,141 |
|
|
10,514 |
|
|
214 |
|
|
73,452 |
|
|
|
2016 Gross Profit % |
|
24.0 |
% |
|
26.4 |
% |
|
24.5 |
% |
|
- |
|
|
25.0 |
% |
|
|
2015 Gross Profit |
|
27,242 |
|
|
24,985 |
|
|
9,998 |
|
|
8 |
|
|
62,233 |
|
|
|
2015 Gross Profit % |
|
23.5 |
% |
|
25.3 |
% |
|
18.8 |
% |
|
- |
|
|
23.2 |
% |
|
|
Change |
|
9,341 |
|
|
1,156 |
|
|
516 |
|
|
206 |
|
|
11,219 |
|
|
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
19,673 |
|
|
10,947 |
|
|
2,626 |
|
|
(14,912 |
) |
|
18,334 |
|
|
|
2015 Profit (Loss) |
|
11,845 |
|
|
10,056 |
|
|
701 |
|
|
(10,334 |
) |
|
12,268 |
|
|
|
Change $ |
|
7,828 |
|
|
891 |
|
|
1,925 |
|
|
(4,578 |
) |
|
6,066 |
|
|
|
Change % |
|
66.1 |
% |
|
8.9 |
% |
|
274.6 |
% |
|
(44.3 |
%) |
|
49.4 |
% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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 |
|
|
| |
|
2016 |
2015 |
Change $ |
|
|
| Total
profit for all segments |
$ |
18,334 |
|
$ |
12,268 |
|
$ |
6,066 |
|
|
|
| Elimination
of intersegment profit |
|
(193 |
) |
|
(610 |
) |
|
417 |
|
|
|
| Net loss
attributable to non-controlling interest |
|
51 |
|
|
147 |
|
|
(96 |
) |
|
|
| Net income attributable to controlling interest |
$ |
18,192 |
|
$ |
11,805 |
|
$ |
6,387 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Astec Industries, Inc. |
|
| Segment Revenues and Profits |
|
| For the six months ended June 30, 2016 and 2015 |
|
| (in thousands) |
|
| (unaudited) |
|
|
|
Infrastructure Group |
Aggregate and MiningGroup |
Energy Group |
Corporate |
Total |
|
|
2016 Revenues |
|
305,590 |
|
|
191,573 |
|
|
75,953 |
|
|
- |
|
|
573,116 |
|
|
|
2015 Revenues |
|
251,143 |
|
|
205,241 |
|
|
100,407 |
|
|
- |
|
|
556,791 |
|
|
|
Change $ |
|
54,447 |
|
|
(13,668 |
) |
|
(24,454 |
) |
|
- |
|
|
16,325 |
|
|
|
Change % |
|
21.7 |
% |
|
(6.7 |
%) |
|
(24.4 |
%) |
|
- |
|
|
2.9 |
% |
|
|
|
|
|
|
|
|
|
|
2016 Gross Profit |
|
76,420 |
|
|
51,289 |
|
|
17,596 |
|
|
103 |
|
|
145,408 |
|
|
|
2016 Gross Profit % |
|
25.0 |
% |
|
26.8 |
% |
|
23.2 |
% |
|
- |
|
|
25.4 |
% |
|
|
2015 Gross Profit |
|
58,188 |
|
|
50,957 |
|
|
19,117 |
|
|
17 |
|
|
128,279 |
|
|
|
2015 Gross Profit % |
|
23.2 |
% |
|
24.8 |
% |
|
19.0 |
% |
|
- |
|
|
23.0 |
% |
|
|
Change |
|
18,232 |
|
|
332 |
|
|
(1,521 |
) |
|
86 |
|
|
17,129 |
|
|
|
|
|
|
|
|
|
|
|
2016 Profit (Loss) |
|
41,536 |
|
|
20,485 |
|
|
2,433 |
|
|
(29,137 |
) |
|
35,317 |
|
|
|
2015 Profit (Loss) |
|
27,356 |
|
|
21,650 |
|
|
864 |
|
|
(22,300 |
) |
|
27,570 |
|
|
|
Change $ |
|
14,180 |
|
|
(1,165 |
) |
|
1,569 |
|
|
(6,837 |
) |
|
7,747 |
|
|
|
Change % |
|
51.8 |
% |
|
(5.4 |
%) |
|
181.6 |
% |
|
(30.7 |
%) |
|
28.1 |
% |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| 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): |
|
|
|
|
|
|
|
|
|
| |
|
Six months ended June 30 |
|
|
| |
|
2016 |
2015 |
Change $ |
|
|
| Total profit for all segments |
$ |
35,317 |
|
$ |
27,570 |
|
$ |
7,747 |
|
|
|
| Recapture
(elimination) of intersegment profit |
|
502 |
|
|
(996 |
) |
|
1,498 |
|
|
|
| Net loss
attributable to non-controlling interest |
|
116 |
|
|
335 |
|
|
(219 |
) |
|
|
| Net income attributable to controlling interest |
$ |
35,935 |
|
$ |
26,909 |
|
$ |
9,026 |
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Astec Industries, Inc. |
|
|
| Backlog by Segment |
|
|
| June 30, 2016 and 2015 |
|
|
| (in thousands) |
|
|
| (unaudited) |
|
|
|
|
Infrastructure Group |
Aggregate and Mining Group |
Energy Group |
Total |
|
|
|
2016 Backlog |
|
272,364 |
|
|
59,522 |
|
|
32,573 |
|
|
364,459 |
|
|
|
|
2015 Backlog |
|
106,376 |
|
|
74,445 |
|
|
48,653 |
|
|
229,474 |
|
|
|
|
Change $ |
|
165,988 |
|
|
(14,923 |
) |
|
(16,080 |
) |
|
134,985 |
|
|
|
|
Change % |
|
156.0 |
% |
|
(20.0 |
%) |
|
(33.1 |
%) |
|
58.8 |
% |
|
|
| |
|
|
|
|
|
|
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