Attached files
| file | filename |
|---|---|
| 8-K - EARNINGS RELEASE - ASTEC INDUSTRIES INC | f8k-033113.htm |
Exhibit 99-1
Astec Industries, Inc.
News Release
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
ASTEC INDUSTRIES REPORTS FIRST QUARTER 2013 RESULTS
CHATTANOOGA, Tenn. (April 23, 2013) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their first quarter ended March 31, 2013.
Net sales for the first quarter of 2013 were $247.8 million compared to $252.0 million for the first quarter of 2012, a 2% decrease. Earnings from continuing operations for the first quarter of 2013 were $13.3 million or $0.57 per diluted share compared to $12.0 for the first quarter of 2012 or $0.52 per diluted share, an increase of 10% per diluted share.
Domestic sales increased 4% to $161.9 million for the first quarter of 2013 from $155.1 million for the first quarter of 2012. International sales were $85.9 million for the first quarter of 2013 compared to $96.9 million for the first quarter of 2012, a decrease of 11%.
The Company’s domestic backlog increased 5%, from $159.7 million at March 31, 2012 to $167.3 million at March 31, 2013. The international backlog at March 31, 2013 was $109.2 million, a 6% decrease from the March 31, 2012 international backlog of $116.5 million. The March 31, 2012 backlog has been restated for the sale of American Augers late in 2012.
Consolidated financial information for the first quarter ended March 31, 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, “Although our revenues and pre-tax earnings were relatively flat compared to the first quarter of 2012, we were able to improve our gross margin by 30 basis points over the first quarter of 2012 and 250 basis points from the fourth quarter of 2012. Since the federal research and development tax credit for 2012 was not approved by Congress until early 2013, our first quarter results also include a substantial reduction in our effective tax rate.”
Dr. Brock continued, “We continue to see challenging domestic market conditions due to shortfalls in tax revenues in most states. International business is also hampered by economic and political uncertainty in many of the markets we serve. In spite of the lack of strong Federal highway funding and general uncertainty in the world economy, we are pleased that we have maintained our profitability and market share. Our backlog remains strong at $276.5 million.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 23, 2013, 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 7, 2013 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 412258. 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 and the effects of general economic and political uncertainty on our 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, the affect 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, 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
|
Astec Industries, Inc.
|
||
|
Consolidated Balance Sheets
|
||
|
(in thousands)
|
||
|
(unaudited)
|
|
Mar 31
|
Mar 31
|
|||||||
|
2013
|
2012
|
|||||||
|
Assets
|
||||||||
|
Current assets
|
||||||||
|
Cash and cash equivalents
|
$ | 73,175 | $ | 41,642 | ||||
|
Receivables, net
|
104,599 | 113,609 | ||||||
|
Inventories
|
322,007 | 313,407 | ||||||
|
Prepaid expenses and other
|
26,733 | 21,976 | ||||||
|
Total current assets
|
526,514 | 490,634 | ||||||
|
Property and equipment, net
|
186,192 | 191,489 | ||||||
|
Other assets
|
40,890 | 43,607 | ||||||
|
Total assets
|
$ | 753,596 | $ | 725,730 | ||||
|
Liabilities and equity
|
||||||||
|
Current liabilities
|
||||||||
|
Accounts payable - trade
|
$ | 50,781 | $ | 56,137 | ||||
|
Other current liabilities
|
110,134 | 92,593 | ||||||
|
Total current liabilities
|
160,915 | 148,730 | ||||||
|
Non-current liabilities
|
31,999 | 33,901 | ||||||
|
Total equity
|
560,682 | 543,099 | ||||||
|
Total liabilities and equity
|
$ | 753,596 | $ | 725,730 | ||||
|
Astec Industries, Inc.
|
||
|
Consolidated Statements of Income
|
||
|
(in thousands, except per share data)
|
||
|
(unaudited)
|
|
Three Months Ended
|
||||||||
|
Mar 2013
|
Mar 2012
|
|||||||
|
Net sales
|
$ | 247,833 | $ | 251,967 | ||||
|
Cost of sales
|
189,266 | 193,371 | ||||||
|
Gross profit
|
58,567 | 58,596 | ||||||
|
Selling, general, administrative & engineering expenses
|
40,367 | 40,143 | ||||||
|
Income from operations
|
18,200 | 18,453 | ||||||
|
Interest expense
|
70 | 47 | ||||||
|
Other income, net of expenses
|
752 | 849 | ||||||
|
Income from continuing operations before income taxes
|
18,882 | 19,255 | ||||||
|
Income taxes on continuing operations
|
5,631 | 7,231 | ||||||
|
Net income from continuing operations
|
13,251 | 12,024 | ||||||
|
Income from discontinued operations, (net of tax of $73)
|
- | 234 | ||||||
|
Net income
|
13,251 | 12,258 | ||||||
|
Net income attributable to non-controlling interest
|
80 | 13 | ||||||
|
Net income attributable to controlling interest
|
$ | 13,171 | $ | 12,245 | ||||
|
Earnings per Common Share
|
||||||||
|
Net income attributable to controlling interest from continuing operations
|
||||||||
|
Basic
|
$ | 0.58 | $ | 0.53 | ||||
|
Diluted
|
$ | 0.57 | $ | 0.52 | ||||
|
Income from discontinued operations, net of tax
|
||||||||
|
Basic
|
$ | - | $ | 0.01 | ||||
|
Diluted
|
$ | - | $ | 0.01 | ||||
|
Net income attributable to controlling interest
|
||||||||
|
Basic
|
$ | 0.58 | $ | 0.54 | ||||
|
Diluted
|
$ | 0.57 | $ | 0.53 | ||||
|
Weighted average common shares outstanding
|
||||||||
|
Basic
|
22,723 | 22,643 | ||||||
|
Diluted
|
23,080 | 23,054 | ||||||
|
Astec Industries, Inc.
|
||||||||||||||||||||||||
|
Segment Revenues and Profits
|
||||||||||||||||||||||||
|
For the three months ended March 31, 2013 and 2012
|
||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||||||
|
Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All
Others |
Total
|
|||||||||||||||||||
|
2013 Revenues
|
71,549 | 90,762 | 47,290 | 14,706 | 23,526 | 247,833 | ||||||||||||||||||
|
2012 Revenues
|
68,671 | 91,304 | 41,993 | 22,059 | 27,940 | 251,967 | ||||||||||||||||||
|
Change $
|
2,878 | (542 | ) | 5,297 | (7,353 | ) | (4,414 | ) | (4,134 | ) | ||||||||||||||
|
Change %
|
4.2 | % | (0.6 | %) | 12.6 | % | (33.3 | %) | (15.8 | %) | (1.6 | %) | ||||||||||||
|
2013 Gross Profit
|
20,154 | 23,040 | 10,559 | 275 | 4,539 | 58,567 | ||||||||||||||||||
|
2013 Gross Profit %
|
28.2 | % | 25.4 | % | 22.3 | % | 1.9 | % | 19.3 | % | 23.6 | % | ||||||||||||
|
2012 Gross Profit
|
16,396 | 23,737 | 10,604 | 3,084 | 4,775 | 58,596 | ||||||||||||||||||
|
2012 Gross Profit %
|
23.9 | % | 26.0 | % | 25.3 | % | 14.0 | % | 17.1 | % | 23.3 | % | ||||||||||||
|
Change
|
3,758 | (697 | ) | (45 | ) | (2,809 | ) | (236 | ) | (29 | ) | |||||||||||||
|
2013 Profit (Loss)
|
11,141 | 9,057 | 4,221 | (2,381 | ) | (8,172 | ) | 13,866 | ||||||||||||||||
|
2012 Profit (Loss)
|
7,391 | 9,571 | 3,921 | (173 | ) | (9,213 | ) | 11,497 | ||||||||||||||||
|
Change $
|
3,750 | (514 | ) | 300 | (2,208 | ) | 1,041 | 2,369 | ||||||||||||||||
|
Change %
|
50.7 | % | (5.4 | %) | 7.7 | % | (1276.3 | %) | 11.3 | % | 20.6 | % | ||||||||||||
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 |
||||||||||||
|
2013
|
2012
|
Change $
|
||||||||||
|
Total profit for all segments
|
13,866 | 11,497 | 2,369 | |||||||||
|
Recapture (elimination) of intersegment profit
|
(615 | ) | 527 | (1,142 | ) | |||||||
|
Net income from continuing operations
|
13,251 | 12,024 | 1,227 | |||||||||
|
Income from discontinued operations, (net of tax of $73)
|
- | 234 | (234 | ) | ||||||||
|
Net income attributable to non-controlling interest
|
(80 | ) | (13 | ) | (67 | ) | ||||||
|
Net income attributable to controlling interest
|
13,171 | 12,245 | 926 | |||||||||
|
Astec Industries, Inc.
|
||||||||||||||||||||||||
|
Backlog by Segment
|
||||||||||||||||||||||||
|
March 31, 2013 and 2012
|
||||||||||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||
|
(unaudited)
|
||||||||||||||||||||||||
|
Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All
Others |
Total
|
|||||||||||||||||||
|
2013 Backlog
|
126,895 | 93,867 | 10,056 | 30,937 | 14,770 | 276,525 | ||||||||||||||||||
|
2012 Backlog
|
123,327 | 102,686 | 10,799 | 26,380 | 12,980 | 276,172 | ||||||||||||||||||
|
Change $
|
3,568 | (8,819 | ) | (743 | ) | 4,557 | 1,790 | 353 | ||||||||||||||||
|
Change %
|
2.9 | % | (8.6 | %) | (6.9 | %) | 17.3 | % | 13.8 | % | 0.1 | % | ||||||||||||
|
Astec Industries, Inc.
|
||||||||||||||||
|
Supplemental Data Related to the Discontinued Operations of American Augers
|
||||||||||||||||
|
(in thousands)
|
||||||||||||||||
|
(unaudited)
|
||||||||||||||||
|
2012
|
2011
|
|||||||||||||||
|
Quarter Ended
|
Revenues
|
Earnings, net of tax
|
Revenues
|
Earnings, net of tax
|
||||||||||||
|
March 31
|
14,670 | 234 | 5,800 | (1,251 | ) | |||||||||||
|
June 30
|
15,600 | 848 | 16,704 | 918 | ||||||||||||
|
September 30
|
8,651 | 318 | 14,717 | 915 | ||||||||||||
|
December 31
|
14,698 | 2,001 | 9,867 | (357 | ) | |||||||||||
|
Total
|
53,619 | 3,401 | 47,088 | 225 | ||||||||||||