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Astec Industries Reports First Quarter 2018 Results

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CHATTANOOGA, Tenn., April 24, 2018 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (NASDAQ:ASTE) today reported results for their first quarter ended March 31, 2018. 

Net sales for the first quarter of 2018 were $325.5 million compared to $318.4 million for the first quarter of 2017, a 2.2% increase.  Domestic sales increased 6.5% to $270.1 million for the first quarter of 2018 from $253.5 million for the first quarter of 2017.  International sales decreased 14.7% to $55.4 million for the first quarter of 2018 from $64.9 million for the first quarter of 2017.

Earnings for the first quarter of 2018 were $20.3 million or $0.87 per diluted share, compared to $15.1 million or $0.65 per diluted share in the first quarter of 2017, an increase in earnings per share of 33.8%.

Commenting on the announcement of the quarterly results, Benjamin G. Brock, Chief Executive Officer, stated, "We are pleased with our first quarter financial results and our increased backlog. While we have a good start to the year, we have opportunities to improve.  Our gross margin for the quarter was 24% which puts us on our way toward our goal to exit 2018 at a 25% gross margin."

Mr. Brock concluded, "Our $444.9 million backlog is reflective of strong private and public work environments for our customers.  Given our backlog and customer feedback on their markets, we are optimistic for 2018 as a whole."

The Company's backlog at March 31, 2018 was $444.9 million, an increase of $67.3 million or 17.8% compared to the March 31, 2017 backlog of $377.6 million.  Domestic backlog increased 11.6% to $341.1 million at March 31, 2018 from $305.8 million at March 31, 2017.  The international backlog at March 31, 2018 was $103.8 million compared to $71.8 million at March 31, 2017, an increase of 44.5%.  Excluding all pellet plant backlogs, the Company's March 31, 2018 backlog increased $69.3 million or 22.4% compared to March 31, 2017.  All prior year backlog amounts have been recast to include the backlog of RexCon, Inc. which was acquired in October, 2017.

Consolidated financial information for the first quarter ended March 31, 2018 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 24, 2018, 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 8, 2018 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Replay ID# 27852.  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; wood processing and concrete production.  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, commercial and industrial burners, concrete 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.  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, 2017. 

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.
Consolidated Balance Sheets
(in thousands)
(unaudited)
 
  Mar 31 Mar 31
  2018 2017
Assets    
Current assets    
Cash and cash equivalents $   41,940 $   55,401
Investments     1,751     1,408
Receivables, net     153,854     156,222
Inventories     411,159     372,570
Prepaid expenses and other     23,533     20,731
Total current assets     632,237     606,332
Property and equipment, net     189,287     182,223
Other assets     96,841     85,933
Total assets $   918,365 $   874,488
Liabilities and equity    
Current liabilities    
Accounts payable - trade $   68,833 $   73,807
Other current liabilities     117,609     110,828
Total current liabilities     186,442     184,635
Non-current liabilities     23,847     25,503
Total equity     708,076     664,350
Total liabilities and equity $   918,365 $   874,488
     
     
Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended
  Mar 31
  2018 2017
Net sales $   325,453 $   318,401
Cost of sales     247,448     242,630
Gross profit     78,005     75,771
Selling, general, administrative & engineering expenses     52,078     53,121
Income from operations     25,927     22,650
Interest expense     150     265
Other     512     552
Income before income taxes     26,289     22,937
Income taxes     6,022     7,817
Net income attributable to controlling interest  $   20,267 $   15,120
     
     
Earnings per Common Share    
Net income attributable to controlling interest    
  Basic $   0.88 $   0.66
  Diluted $   0.87 $   0.65
     
Weighted average common shares outstanding    
  Basic     23,045     23,013
  Diluted     23,236     23,176
     


Astec Industries, Inc.  
Segment Revenues and Profits  
For the three months ended March 31, 2018 and 2017  
(in thousands)  
(unaudited)  
  Infrastructure Group Aggregate and Mining Group Energy Group Corporate Group Total  
2018 Revenues   147,094   119,067   59,292   -    325,453  
2017 Revenues   165,243   100,613   52,545   -    318,401  
Change $   (18,149)   18,454   6,747   -    7,052  
Change % (11.0%) 18.3% 12.8%   -  2.2%  
             
2018 Gross Profit   33,280   29,289   15,286   150   78,005  
2018 Gross Profit % 22.6% 24.6% 25.8%   -  24.0%  
2017 Gross Profit   37,801   25,023   12,887   60   75,771  
2017 Gross Profit % 22.9% 24.9% 24.5%   -  23.8%  
Change   (4,521)   4,266   2,399   90   2,234  
             
2018 Profit (Loss)   14,852   13,110   4,611   (11,248)   21,325  
2017 Profit (Loss)   18,180   8,428   2,729   (14,428)   14,909  
Change $   (3,328)   4,682   1,882   3,180   6,416  
Change % (18.3%) 55.6% 69.0% 22.0% 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    
    2018 2017 Change $    
Total profit for all segments $   21,325   $   14,909   $   6,416      
Recapture (elimination) of intersegment profit     (1,109 )     171       (1,280 )    
Net loss attributable to non-controlling interest     51       40       11      
Net income attributable to controlling interest  $   20,267   $   15,120   $   5,147      
             
             
Astec Industries, Inc.    
Backlog by Segment    
March 31, 2018 and 2017    
(in thousands)    
(Unaudited)    
  Infrastructure Group Aggregate and Mining Group Energy Group Total    
2018 Backlog   230,649   138,687   75,591   444,927    
2017 Backlog   221,849   100,043   55,677   377,569    
Change $   8,800   38,644   19,914   67,358    
Change % 4.0% 38.6% 35.8% 17.8%    
             

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