Astec Industries Reports First Quarter 2018 Results
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: [email protected] orDavid C. Silvious Vice President and Chief Financial OfficerPhone: (423) 899-5898Fax: (423) 899-4456 E-mail: [email protected]or Stephen C. AndersonVice President, Director of Investor Relations & Corporate SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail: [email protected]
| 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% | ||||||||||