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
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