Astec Industries Reports Third Quarter Results
CHATTANOOGA, Tenn., Oct 20, 2009 /PRNewswire-FirstCall via COMTEX/ --
Company: Astec Industries, Inc. (ASTE)
Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2009.
Revenues for the third quarter of 2009 were $166.1 million compared with $237.4 million for the third quarter of 2008 for a 30.0% decrease. Domestic sales were $101.3 million during the third quarter of 2009 compared to $135.3 million during the third quarter of 2008. International sales were $64.8 million during the third quarter of 2009 compared to $102.1 million during the third quarter of 2008. The Company reported net income attributable to controlling interest of $3.3 million for the third quarter of 2009 compared to net income attributable to controlling interest of $16.0 million for the third quarter of 2008 for a decrease of 79.4%. Net income attributable to controlling interest for the third quarter of 2009 was $0.15 per diluted share compared to $0.71 per diluted share for the third quarter of 2008 for a 78.9% decrease.
The Company's backlog at September 30, 2009 was $144.3 million compared to $261.9 million at September 30, 2008 for a 44.9% decrease.
Consolidated financial statements for the third quarter ended September 30, 2009 and additional information related to segment revenues, profits, and backlog are attached to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are disappointed with our third quarter results. We experienced a continued downturn in total revenues during the third quarter. The downturn, however, is not consistent across our segments. For example, the Mobile Asphalt Paving Group third quarter revenues are up 31.5% compared to the third quarter of last year, but the Underground is down 58.1%. With these differences, we have attempted to rightsize each subsidiary and are generally pleased with the gross margins of most segments. S,G,&A expenses have been reduced, but, given the soft sales, S,G,&A is still a higher percentage of sales than our goal. We continue to aggressively develop new products with resulting higher R&D expenses."
"The failure of Congress to renew the Highway Bill creates uncertainty about future funding impacting capital equipment purchasing behavior. Additionally, continued softness in the residential and commercial real estate markets is resulting in the under utilization of customer equipment and less need for additional or replacement equipment. The stimulus packages passed earlier in the year are clearly helping the Mobile Asphalt Paving Group and other segments, but are not enough to counter the continuing economic downturn and the uncertainty around the Highway Bill. Until Congress settles on a new Highway Bill, we expect to see little improvement in domestic sales during the fourth quarter of 2009 and next year."
"International sales declined in total dollars and as a percentage of total sales. Nonetheless, more than 50% of our September 30 backlog is international orders. Approximately 25 foreign countries have instituted stimulus packages and the weak U.S. dollar should favorably impact international sales."
Dr. Brock continued, "Visibility in the market and trends is very limited. The fourth quarter is normally our least profitable quarter of the year. We will manage the company for the long-term and control costs. We have no debt and $36 million of cash and cash equivalents, and will continue to manage our assets. Our strong balance sheet gives us the opportunity to develop new products and to consider acquisitions as they become available."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 20, 2009, at 10:00 A.M. Eastern Time to review its third 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, November 3, 2009, by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 335140. A transcription of the conference call will be made available under the Investor Relation section of the Astec Industries, Inc. website within 5 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 business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. Astec also has a company engaged in the wood chipping and grinding industry.
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 Company's financial performance for 2009, the ability to control costs and maintain or improve margins, the state of the U.S. economy, the effect of a renewed Highway Bill, increases in demand for certain products, the effect of domestic and international stimulus packages, the continued strength or weakness of various business units, and international sales. 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, downturns in the general economy or the commercial construction industry, the cyclical nature of the commercial, construction industry and the customization of the equipment the Company sells, increases in the price of oil or decreases in the availability of oil, increases in the price of raw materials, a failure to comply with covenants in the Company's credit agreement, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, increased government regulation, managing and expanding in international markets, the timing of large contracts, the costs of introducing new equipment systems, the Company's production capacity, demand for the Company's products, seasonality of sales volumes, competitive activity 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, 2008.
Astec Industries, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
Sept 30 Sept 30
2009 2008
---- ----
Assets
Current assets
Cash and cash equivalents $36,149 $28,839
Receivables, net 65,033 93,912
Inventories 263,705 249,378
Prepaid expenses and other 22,067 17,158
------ ------
Total current assets 386,954 389,287
Property and equipment, net 169,559 147,822
Other assets 49,901 68,368
------ ------
Total assets $606,414 $605,477
======== ========
Liabilities and equity
Current liabilities
Accounts payable - trade $36,444 $55,115
Other accrued liabilities 75,823 88,131
------ ------
Total current liabilities 112,267 143,246
Other non-current liabilities 28,387 25,405
Total equity 465,760 436,826
------- -------
Total liabilities and equity $606,414 $605,477
======== ========
Astec Industries, Inc.
Consolidated Statements of Operations
(In thousands)
(Unaudited)
Three Months Ended Nine Months Ended
Sept 30 Sept 30
2009 2008 2009 2008
---- ---- ---- ----
Net sales $166,084 $237,443 $560,231 $778,218
Cost of sales 131,367 178,640 439,264 586,906
------- ------- ------- -------
Gross profit 34,717 58,803 120,967 191,312
Selling, general,
administrative &
engineering expenses 30,433 34,269 93,466 106,638
------ ------ ------ -------
Income from operations 4,284 24,534 27,501 84,674
Interest expense 66 276 418 528
Other income, net of expenses 471 260 1,614 1,099
Income before income taxes 4,689 24,518 28,697 85,245
Income taxes 1,320 8,512 10,157 30,593
----- ----- ------ ------
Net income 3,369 16,006 18,540 54,652
Net income attributable to
noncontrolling interest 25 44 16 99
-- -- -- --
Net income attributable to
controlling interest $3,344 $15,962 $18,524 $54,553
====== ======= ======= =======
Earnings per Common Share
Net income attributable to
controlling interest
Basic $0.15 $0.72 $0.83 $2.45
===== ===== ===== =====
Diluted $0.15 $0.71 $0.82 $2.41
===== ===== ===== =====
Weighted average
common shares
outstanding
Basic 22,453,073 22,289,973 22,439,635 22,270,121
========== ========== ========== ==========
Diluted 22,735,064 22,600,978 22,711,526 22,595,174
========== ========== ========== ==========
Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended September 30, 2009 and 2008
(in thousands)
(Unaudited)
Aggregate Mobile
and Asphalt
Asphalt Mining Paving Underground All
Group Group Group Group Others Total
------- --------- -------- ----------- ------ -----
2009 Revenues 44,556 55,865 36,814 16,939 11,910 166,084
2008 Revenues 56,658 90,268 27,993 40,443 22,081 237,443
Change $ (12,102) (34,403) 8,821 (23,504) (10,171) (71,359)
Change % (21.4%) (38.1%) 31.5% (58.1%) (46.1%) (30.1%)
2009 Gross
Profit 10,769 12,691 9,148 784 1,325 34,717
2009 Gross
Profit % 24.2% 22.7% 24.8% 4.6% 11.1% 20.9%
2008 Gross
Profit 17,045 20,402 6,547 11,318 3,491 58,803
2008 Gross
Profit % 30.1% 22.6% 23.4% 28.0% 15.8% 24.8%
Change (6,276) (7,711) 2,601 (10,534) (2,166) (24,086)
2009 Profit
(Loss) 4,045 2,811 4,281 (3,007) (4,505) 3,625
2008 Profit
(Loss) 10,675 10,773 1,465 6,583 (11,948) 17,548
Change $ (6,630) (7,962) 2,816 (9,590) 7,443 (13,923)
Change % (62.1%) (73.9%) 192.2% (145.7%) 62.3% (79.3%)
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:
For the three months ended
September 30
2009 2008
---- ----
Total profit for all segments $3,625 $17,548
Net income attributable to
noncontrolling interest in subsidiary (25) (44)
Elimination of intersegment profit (256) (1,542)
---- ------
Net income attributable to controlling
interest $3,344 $15,962
====== =======
Astec Industries, Inc.
Segment Revenues and Profits
For the nine months ended September 30, 2009 and 2008
(in thousands)
(Unaudited)
Aggregate Mobile
and Asphalt
Asphalt Mining Paving Underground All
Group Group Group Group Others Total
------- --------- ------- ----------- ------ -----
2009 Revenues 197,385 162,893 105,077 54,331 40,545 560,231
2008 Revenues 200,572 273,753 130,180 109,298 64,415 778,218
Change $ (3,187) (110,860) (25,103) (54,967) (23,870) (217,987)
Change % (1.6%) (40.5%) (19.3%) (50.3%) (37.1%) (28.0%)
2009 Gross
Profit 49,860 37,165 24,501 3,820 5,621 120,967
2009 Gross
Profit % 25.3% 22.8% 23.3% 7.0% 13.9% 21.6%
2008 Gross
Profit 54,652 66,087 32,696 26,728 11,149 191,312
2008 Gross
Profit % 27.2% 24.1% 25.1% 24.5% 17.3% 24.6%
Change (4,792) (28,922) (8,195) (22,908) (5,528) (70,345)
2009 Profit
(Loss) 27,325 8,532 10,632 (9,589) (18,320) 18,580
2008 Profit
(Loss) 33,964 32,942 16,030 11,972 (38,724) 56,184
Change $ (6,639) (24,410) (5,398) (21,561) 20,404 (37,604)
Change % (19.5%) (74.1%) (33.7%) (180.1%) 52.7% (66.9%)
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:
For the nine months ended
September 30
2009 2008
---- ----
Total profit for all segments $18,580 $56,184
Net income attributable to noncontrolling
interest in subsidiary (16) (99)
Elimination of intersegment profit (40) (1,532)
--- ------
Net income attributable to controlling
interest $18,524 $54,553
======= =======
Astec Industries, Inc.
Backlog by Segment
September 30, 2009 and 2008
(in thousands)
(Unaudited)
Aggregate Mobile
and Asphalt
Asphalt Mining Paving Underground All
Group Group Group Group Others Total
------- ---------- ------- ----------- ------ -----
2009 Backlog 76,328 54,693 4,346 2,947 5,968 144,282
2008 Backlog 130,688 104,364 974 14,841 10,988 261,855
Change $ (54,360) (49,671) 3,372 (11,894) (5,020) (117,573)
Change % (41.6%) (47.6%) 346.2% (80.1%) (45.7%) (44.9%)
SOURCE Astec Industries, Inc.
http://www.astecindustries.com
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Company: Astec Industries, Inc. (ASTE)
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