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| 8-K - EARNINGS RELEASE - ASTEC INDUSTRIES INC | f8k-072313.htm |
Astec Industries, Inc.
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
ASTEC INDUSTRIES REPORTS SECOND QUARTER 2013 RESULTS
CHATTANOOGA, Tenn. (July 23, 2013) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2013.
Net sales for the second quarter of 2013 were $248.1 million compared to $238.3 million for the second quarter of 2012, a 4% increase. Earnings from continuing operations for the second quarter of 2013 were $11.1 million or $0.48 per diluted share compared to $9.5 million or $0.41 per diluted share for the second quarter of 2012, an increase of 17% per diluted share.
Domestic sales increased 5% to $162.3 million for the second quarter of 2013 from $154.4 million for the second quarter of 2012. International sales were $85.8 million for the second quarter of 2013 compared to $83.9 million for the second quarter of 2012, an increase of 2%.
Net sales for the first half of 2013 were $496.0 million compared to $490.2 million for the first half of 2012, a 1% increase. Earnings from continuing operations for the first half of 2013 were $24.3 million or $1.05 per diluted share compared to $21.5 million or $0.93 per diluted share for the first half of 2012, an increase of 13% per diluted share.
Domestic sales increased 5% to $324.3 million for the first half of 2013 from $309.4 million for the first half of 2012. International sales were $171.7 million for the first half of 2013 compared to $180.8 million for the first half of 2012, a decrease of 5%.
The Company’s domestic backlog decreased 5%, from $147.1 million at June 30, 2012 to $140.3 million at June 30, 2013. The international backlog at June 30, 2013 was $100.3 million, a 7% decrease from the June 30, 2012 international backlog of $107.7 million. The June 30, 2012 backlog has been restated for the sale of American Augers late in 2012.
Consolidated financial information for the second quarter ended June 30, 2013 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “As we discussed in our first quarter conference call, our second quarter performance was very similar to our first quarter. We were able to reduce our S,G,A and E expenses compared to the first quarter of 2013 but our gross margin came in below our expectations in the Asphalt Group due to product mix and decreased overhead absorption.”
Dr. Brock continued, “Many areas of the Central and Eastern United States have experienced historically high rainfall, delaying construction work. This has also delayed many of our shipments. However, on a positive note, customers are seeing a slight pickup in residential and commercial work. With the delayed work for the first half of the year we expect to see their business much stronger in the second half. Hopefully this will improve demand during the fourth quarter and into next year. We continue to be optimistic for our growth in the energy business with our new pellet plant, high tech drill rigs, pump trailers, water heaters, and gas processing heaters. Unfortunately, we see the near term orders being down slightly with a pickup in demand in the fourth quarter. We are continuing to reduce expenses in anticipation of this.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 23, 2013 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 6, 2013 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 417663. 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 building and restoring the world’s infrastructure. Astec’s manufacturing operations are divided into four primary business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and oil, gas and water drilling equipment (Underground Group). Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.
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, its efforts to reduce expenses, the delay in shipments caused by the weather, the increase in demand in its customers’ residential and commercial sectors, and the growth in its energy business. 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, 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, 2012.
For Additional Information Contact:
J. Don Brock
Chairman of the Board & C.E.O.
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
W. Norman Smith
President and COO
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: nsmith@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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Astec Industries, Inc.
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Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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Jun 30
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Jun 30
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2013
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2012
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Assets
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Current assets
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Cash and cash equivalents
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$ | 41,157 | $ | 35,916 | ||||
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Investments
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16,989 | 2,024 | ||||||
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Receivables, net
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102,795 | 119,983 | ||||||
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Inventories
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318,710 | 322,086 | ||||||
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Prepaid expenses and other
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31,494 | 26,377 | ||||||
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Total current assets
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511,145 | 506,386 | ||||||
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Property and equipment, net
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185,033 | 191,289 | ||||||
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Other assets
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41,954 | 43,171 | ||||||
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Total assets
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$ | 738,132 | $ | 740,846 | ||||
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Liabilities and equity
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Current liabilities
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Accounts payable - trade
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$ | 45,776 | $ | 51,824 | ||||
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Other current liabilities
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93,803 | 102,811 | ||||||
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Total current liabilities
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139,579 | 154,635 | ||||||
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Non-current liabilities
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32,531 | 33,458 | ||||||
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Total equity
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566,022 | 552,753 | ||||||
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Total liabilities and equity
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$ | 738,132 | $ | 740,846 | ||||
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Astec Industries, Inc.
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Consolidated Statements of Income
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(in thousands, except per share data)
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(unaudited)
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Three Months Ended
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Six Months Ended
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Jun 30
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Jun 30
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2013
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2012
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2013
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2012
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Net sales
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$ | 248,127 | $ | 238,275 | $ | 495,960 | $ | 490,243 | ||||||||
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Cost of sales
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192,685 | 185,214 | 381,951 | 378,586 | ||||||||||||
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Gross profit
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55,442 | 53,061 | 114,009 | 111,657 | ||||||||||||
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Selling, general, administrative & engineering expenses
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37,795 | 38,456 | 78,162 | 78,599 | ||||||||||||
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Income from operations
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17,647 | 14,605 | 35,847 | 33,058 | ||||||||||||
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Interest expense
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76 | 42 | 147 | 88 | ||||||||||||
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Other
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(29 | ) | 558 | 644 | 1,393 | |||||||||||
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Income from continuing operations before income taxes
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17,542 | 15,121 | 36,344 | 34,363 | ||||||||||||
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Income taxes on continuing operations
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6,450 | 5,603 | 12,081 | 12,834 | ||||||||||||
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Net income from continuing operations
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11,092 | 9,518 | 24,263 | 21,529 | ||||||||||||
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Income from discontinued operations, (net of tax of $406 for the quarter and $479 for the year)
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- | 848 | - | 1,082 | ||||||||||||
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Net income attributable to controlling interest
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$ | 11,092 | $ | 10,366 | $ | 24,263 | $ | 22,611 | ||||||||
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Earnings per Common Share
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Net income from continuing operations
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Basic
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$ | 0.49 | $ | 0.42 | $ | 1.07 | $ | 0.95 | ||||||||
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Diluted
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$ | 0.48 | $ | 0.41 | $ | 1.05 | $ | 0.93 | ||||||||
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Income from discontinued operations, net of tax
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Basic
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$ | - | $ | 0.04 | $ | - | $ | 0.05 | ||||||||
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Diluted
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$ | - | $ | 0.04 | $ | - | $ | 0.05 | ||||||||
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Net income attributable to controlling interest
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Basic
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$ | 0.49 | $ | 0.46 | $ | 1.07 | $ | 1.00 | ||||||||
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Diluted
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$ | 0.48 | $ | 0.45 | $ | 1.05 | $ | 0.98 | ||||||||
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Weighted average common shares outstanding
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Basic
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22,752 | 22,691 | 22,738 | 22,667 | ||||||||||||
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Diluted
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23,069 | 23,041 | 23,075 | 23,047 | ||||||||||||
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the three months ended June 30, 2013 and 2012
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(in thousands)
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(unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others
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Total
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2013 Revenues
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63,153 | 99,884 | 45,750 | 17,094 | 22,246 | 248,127 | ||||||||||||||||||
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2012 Revenues
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59,431 | 94,860 | 45,160 | 19,230 | 19,594 | 238,275 | ||||||||||||||||||
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Change $
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3,722 | 5,024 | 590 | (2,136 | ) | 2,652 | 9,852 | |||||||||||||||||
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Change %
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6.3 | % | 5.3 | % | 1.3 | % | (11.1 | %) | 13.5 | % | 4.1 | % | ||||||||||||
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2013 Gross Profit
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11,878 | 25,615 | 11,171 | 2,232 | 4,546 | 55,442 | ||||||||||||||||||
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2013 Gross Profit %
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18.8 | % | 25.6 | % | 24.4 | % | 13.1 | % | 20.4 | % | 22.3 | % | ||||||||||||
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2012 Gross Profit
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11,775 | 25,818 | 10,151 | 2,054 | 3,263 | 53,061 | ||||||||||||||||||
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2012 Gross Profit %
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19.8 | % | 27.2 | % | 22.5 | % | 10.7 | % | 16.7 | % | 22.3 | % | ||||||||||||
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Change
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103 | (203 | ) | 1,020 | 178 | 1,283 | 2,381 | |||||||||||||||||
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2013 Profit (Loss)
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4,061 | 11,141 | 4,608 | (768 | ) | (7,753 | ) | 11,289 | ||||||||||||||||
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2012 Profit (Loss)
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3,902 | 11,567 | 4,082 | (873 | ) | (8,210 | ) | 10,468 | ||||||||||||||||
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Change $
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159 | (426 | ) | 526 | 105 | 457 | 821 | |||||||||||||||||
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Change %
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4.1 | % | (3.7 | %) | 12.9 | % | 12.0 | % | 5.6 | % | 7.8 | % | ||||||||||||
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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): |
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Three months ended June 30
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2013
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2012
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Change $
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Total profit for all segments
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$ | 11,289 | $ | 10,468 | $ | 821 | ||||||
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Elimination of intersegment profit
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(136 | ) | (887 | ) | 751 | |||||||
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Net income attributable to non-controlling interest
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(61 | ) | (63 | ) | 2 | |||||||
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Net income from continuing operations
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11,092 | 9,518 | 1,574 | |||||||||
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Income from discontinued operations, (net of tax of $406)
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- | 848 | (848 | ) | ||||||||
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Net income attributable to controlling interest
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$ | 11,092 | $ | 10,366 | $ | 726 | ||||||
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the six months ended June 30, 2013 and 2012
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(in thousands)
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(unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others
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Total
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2013 Revenues
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134,703 | 190,646 | 93,041 | 31,800 | 45,770 | 495,960 | ||||||||||||||||||
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2012 Revenues
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128,102 | 186,164 | 87,153 | 41,288 | 47,536 | 490,243 | ||||||||||||||||||
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Change $
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6,601 | 4,482 | 5,888 | (9,488 | ) | (1,766 | ) | 5,717 | ||||||||||||||||
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Change %
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5.2 | % | 2.4 | % | 6.8 | % | (23.0 | %) | (3.7 | %) | 1.2 | % | ||||||||||||
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2013 Gross Profit
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32,032 | 48,656 | 21,730 | 2,507 | 9,084 | 114,009 | ||||||||||||||||||
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2013 Gross Profit %
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23.8 | % | 25.5 | % | 23.4 | % | 7.9 | % | 19.8 | % | 23.0 | % | ||||||||||||
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2012 Gross Profit
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28,171 | 49,555 | 20,756 | 5,137 | 8,038 | 111,657 | ||||||||||||||||||
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2012 Gross Profit %
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22.0 | % | 26.6 | % | 23.8 | % | 12.4 | % | 16.9 | % | 22.8 | % | ||||||||||||
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Change
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3,861 | (899 | ) | 974 | (2,630 | ) | 1,046 | 2,352 | ||||||||||||||||
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2013 Profit (Loss)
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15,202 | 20,198 | 8,829 | (3,149 | ) | (15,927 | ) | 25,153 | ||||||||||||||||
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2012 Profit (Loss)
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11,293 | 21,138 | 8,003 | (1,046 | ) | (17,423 | ) | 21,965 | ||||||||||||||||
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Change $
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3,909 | (940 | ) | 826 | (2,103 | ) | 1,496 | 3,188 | ||||||||||||||||
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Change %
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34.6 | % | (4.4 | %) | 10.3 | % | (201.1 | %) | 8.6 | % | 14.5 | % | ||||||||||||
| 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): |
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Six months ended June 30
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2013
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2012
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Change $
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Total profit for all segments
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$ | 25,153 | $ | 21,965 | $ | 3,188 | ||||||
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Elimination of intersegment profit
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(750 | ) | (360 | ) | (390 | ) | ||||||
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Net income attributable to non-controlling interest
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(140 | ) | (76 | ) | (64 | ) | ||||||
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Net income from continuing operations
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24,263 | 21,529 | 2,734 | |||||||||
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Income from discontinued operations, (net of tax of $479)
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- | 1,082 | (1,082 | ) | ||||||||
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Net income attributable to controlling interest
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$ | 24,263 | $ | 22,611 | $ | 1,652 | ||||||
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Astec Industries, Inc.
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Backlog by Segment
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June 30, 2013 and 2012
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(in thousands)
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(Unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others
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Total
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2013 Backlog
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103,270 | 88,706 | 3,086 | 26,811 | 18,750 | 240,623 | ||||||||||||||||||
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2012 Backlog
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115,428 | 97,394 | 5,055 | 23,415 | 13,508 | 254,800 | ||||||||||||||||||
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Change $
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(12,158 | ) | (8,688 | ) | (1,969 | ) | 3,396 | 5,242 | (14,177 | ) | ||||||||||||||
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Change %
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(10.5 | %) | (8.9 | %) | (39.0 | %) | 14.5 | % | 38.8 | % | (5.6 | %) | ||||||||||||