CHATTANOOGA, Tenn., April 21, 2015 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq: ASTE ) today reported results for their first quarter ended March 31, 2015.
Net sales for the first quarter of 2015 were $288.7 million compared to $238.7 million for the first quarter of 2014, a 21% increase. Earnings for the first quarter of 2015 were $15.1 million or $0.65 per diluted share compared to $9.5 million for the first quarter of 2014 or $0.41 per diluted share, an increase of 59% per diluted share.
Domestic sales increased 20% to $211.0 million for the first quarter of 2015 from $175.5 million for the first quarter of 2014. International sales were $77.7 million for the first quarter of 2015 compared to $63.2 million for the first quarter of 2014, an increase of 23%.
The Company's backlog decreased 6% from $309.6 million at March 31, 2014 to $291.2 million at March 31, 2015. The domestic backlog increased 2% from $197.3 million at March 31, 2014 to $201.0 million at March 31, 2015. The international backlog at March 31, 2015 was $90.2 million, a 20% decrease from the March 31, 2014 international backlog of $112.3 million.
Consolidated financial information for the first quarter ended March 31, 2015 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, "We were pleased with our results for the first quarter. Our customers in the United States continue to experience a good private construction market and states continue to implement mechanisms to raise funds for highway funding as Congress continues to struggle to develop and pass a long-term highway bill. While we expect another short-term extension of the current federal highway bill, we still believe there is a desire in Washington to pass a long-term highway bill this year."
Mr. Brock continued, "Our backlog was off 6% versus last year. All of the decline was contained in international backlog primarily due to the strength of the United States dollar and the slowdown in mining globally. Despite our backlog being down versus the first quarter of 2014, our backlog remains strong and we are optimistic on our first half 2015. We remain focused on growing and improving our international sales and we will be in a good position when the currency exchange rates improve and the global mining industry rebounds."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 21, 2015, 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 5, 2015 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13606155. 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; and wood processing. Astec's manufacturing operations are divided into three primary business segments: road building 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, 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, including statements about the effects on the Company from its backlog, future federal highway funding and efforts to improve 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, 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, 2014.
| Astec Industries, Inc. | ||
| Consolidated Balance Sheets | ||
| (in thousands) | ||
| (unaudited) | ||
| Mar 31 | Mar 31 | |
| 2015 | 2014 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 12,464 | $ 44,969 |
| Investments | 2,195 | 1,462 |
| Receivables, net | 129,919 | 109,080 |
| Inventories | 388,710 | 361,209 |
| Prepaid expenses and other | 34,923 | 28,717 |
| Total current assets | 568,211 | 545,437 |
| Property and equipment, net | 184,922 | 187,895 |
| Other assets | 60,940 | 41,372 |
| Total assets | $ 814,073 | $ 774,704 |
| Liabilities and equity | ||
| Current liabilities | ||
| Accounts payable - trade | $ 66,220 | $ 59,364 |
| Other current liabilities | 99,631 | 93,596 |
| Total current liabilities | 165,851 | 152,960 |
| Non-current liabilities | 40,498 | 32,490 |
| Total equity | 607,724 | 589,254 |
| Total liabilities and equity | $ 814,073 | $ 774,704 |
| Astec Industries, Inc. | ||
| Consolidated Statements of Income | ||
| (in thousands, except per share data) | ||
| (unaudited) | ||
| Three Months Ended | ||
| Mar 31 | ||
| 2015 | 2014 | |
| Net sales | $ 288,748 | $ 238,673 |
| Cost of sales | 222,703 | 181,916 |
| Gross profit | 66,045 | 56,757 |
| Selling, general, administrative & engineering expenses | 43,804 | 43,424 |
| Income from operations | 22,241 | 13,333 |
| Interest expense | 297 | 73 |
| Other | 1,949 | 812 |
| Income before income taxes | 23,893 | 14,072 |
| Income taxes | 8,788 | 4,527 |
| Net income attributable to controlling interest | $ 15,105 | $ 9,545 |
| Earnings per Common Share | ||
| Net income attributable to controlling interest | ||
| Basic | $ 0.66 | $ 0.42 |
| Diluted | $ 0.65 | $ 0.41 |
| Weighted average common shares outstanding | ||
| Basic | 22,904 | 22,786 |
| Diluted | 23,114 | 23,102 |
| Astec Industries, Inc. | |||||
| Segment Revenues and Profits | |||||
| For the three months ended March 31, 2015 and 2014 | |||||
| (in thousands) | |||||
| (unaudited) | |||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Corporate Group | Total | |
| 2015 Revenues | 135,045 | 106,412 | 47,291 | -- | 288,748 |
| 2014 Revenues | 98,791 | 93,108 | 46,774 | -- | 238,673 |
| Change $ | 36,254 | 13,304 | 517 | -- | 50,075 |
| Change % | 36.7% | 14.3% | 1.1% | -- | 21.0% |
| 2015 Gross Profit | 30,946 | 25,972 | 9,119 | 8 | 66,045 |
| 2015 Gross Profit % | 22.9% | 24.4% | 19.3% | -- | 22.9% |
| 2014 Gross Profit | 22,679 | 23,424 | 10,642 | 12 | 56,757 |
| 2014 Gross Profit % | 23.0% | 25.2% | 22.8% | -- | 23.8% |
| Change | 8,267 | 2,548 | (1,523) | (4) | 9,288 |
| 2015 Profit (Loss) | 15,511 | 11,594 | 163 | (11,965) | 15,303 |
| 2014 Profit (Loss) | 8,796 | 9,101 | 1,923 | (9,117) | 10,703 |
| Change $ | 6,715 | 2,493 | (1,760) | (2,848) | 4,600 |
| Change % | 76.3% | 27.4% | (91.5%) | (31.2%) | 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 | ||||
| 2015 | 2014 | Change $ | ||
| Total profit for all segments | $ 15,303 | $ 10,703 | $ 4,600 | |
| Elimination of intersegment profit | (386) | (1,156) | 770 | |
| Net (income) loss attributable to non-controlling interest | 188 | (2) | 190 | |
| Net income attributable to controlling interest | $ 15,105 | $ 9,545 | $ 5,560 | |
| Astec Industries, Inc. | ||||
| Backlog by Segment | ||||
| March 31, 2015 and 2014 | ||||
| (in thousands) | ||||
| (unaudited) | ||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Total | |
| 2015 Backlog | 127,029 | 77,529 | 86,610 | 291,168 |
| 2014 Backlog | 144,598 | 108,832 | 56,135 | 309,565 |
| Change $ | (17,569) | (31,303) | 30,475 | (18,397) |
| Change % | (12.2%) | (28.8%) | 54.3% | (5.9%) |
For Additional Information Contact: Benjamin G. Brock President & Chief Executive Officer Phone: (423) 867-4210 Fax: (423) 867-4127 E-mail: or David C. Silvious Vice President and Chief Financial Officer Phone: (423) 899-5898 Fax: (423) 899-4456 E-mail: or Stephen C. Anderson Vice President, Director of Investor Relations & Corporate Secretary Phone: (423) 899-5898 Fax: (423) 899-4456 E-mail:
