EX-99.1 2 ex99-1.htm PRESS RELEASE
 
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 2015 RESULTS
 
CHATTANOOGA, Tenn. (April 21, 2015) - 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.

For Additional Information Contact:
Benjamin G. Brock
President & Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: bbrock@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
 
   
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
%)