0000792987-16-000101.txt : 20161025 0000792987-16-000101.hdr.sgml : 20161025 20161025084158 ACCESSION NUMBER: 0000792987-16-000101 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20161025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20161025 DATE AS OF CHANGE: 20161025 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASTEC INDUSTRIES INC CENTRAL INDEX KEY: 0000792987 STANDARD INDUSTRIAL CLASSIFICATION: CONSTRUCTION MACHINERY & EQUIP [3531] IRS NUMBER: 620873631 STATE OF INCORPORATION: TN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-11595 FILM NUMBER: 161949355 BUSINESS ADDRESS: STREET 1: 1725 SHEPHERD ROAD CITY: CHATTANOOGA STATE: TN ZIP: 37421 BUSINESS PHONE: 4238995898 MAIL ADDRESS: STREET 1: 1725 SHEPHERD ROAD CITY: CHATTANOOGA STATE: TN ZIP: 37421 8-K 1 f8k-102516.htm EARNINGS RELEASE


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 25, 2016
 
ASTEC INDUSTRIES, INC.
(Exact Name of Registrant as Specified in Charter)
 
 
 
 
 
 
 
Tennessee
001-11595
62-0873631
 
 
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
 
 
 
 
 
1725 Shepherd Road
Chattanooga, Tennessee 37421
(Address of Principal Executive Offices and Zip Code)
 
(423) 899-5898
(Registrant's telephone number, including area code)
 
N/A
(Former name or former address, if changed since last report)
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-d(b))
 
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 
 
 
 


Item 2.02. Results of Operations and Financial Condition.
 
The information, including the exhibits attached hereto, in this Current Report on Form 8-K is being "furnished" and shall not be deemed "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document filed by the Company pursuant to the Securities Act of 1933, as amended, or into any other filing or document made by the Company pursuant to the Securities Exchange Act of 1934, as amended, except as otherwise expressly stated in any such filing.
 
Attached and incorporated herein by reference as Exhibit 99.1 is a copy of the press release of Astec Industries, Inc., dated October 25, 2016, reporting the Company's financial results for the three and nine-month periods ended September 30, 2016.
  
Item 9.01. Financial Statements and Exhibits.
 
(c) Exhibits. The following exhibits are furnished herewith:
Exhibit No.
 
Exhibit Description
99.1
 
Press Release, dated October 25, 2016
 
 
 
SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
ASTEC INDUSTRIES, INC.
 
Date: October 25, 2016
By: /s/ David C. Silvious                                   
David C. Silvious, Chief Financial Officer,
Vice President and Treasurer
(Principal Financial and Accounting Officer)
 
 
 
Index to Exhibits
 
 
 
Exhibit No.
 
Exhibit Description
99.1
 
Press Release, dated October 25, 2016
 


 EX-99.1 2 ex99-1.htm PRESS RELEASE
Astec Industries, Inc.
1725 Shepherd Road  Chattanooga, TN 37421  Phone (423)899-5898  Fax (423) 899-4456
 
News Release
 
ASTEC INDUSTRIES REPORTS THIRD QUARTER 2016 RESULTS

CHATTANOOGA, Tenn. (October 25, 2016) - Astec Industries, Inc. (Nasdaq:  ASTE) today reported results for their third quarter and year to date ended September 30, 2016.

Net sales for the third quarter of 2016 were $247.8 million compared to $211.4 million for the third quarter of 2015, a 17% increase.  Earnings for the third quarter of 2016 were $6.8 million or $0.30 per diluted share compared to $2.3 million or $0.10 per diluted share in the third quarter of 2015, an increase of 200%.

Domestic sales increased 28% to $199.9 million for the third quarter of 2016 compared to $156.3 million for the third quarter of 2015.  International sales decreased 13% to $47.9 million for the third quarter of 2016 compared to $55.1 million for the third quarter of 2015.

Net sales for the first nine months of 2016 were $820.9 million compared to $768.1 million for the first nine months of 2015, a 7% increase.  Earnings for the first nine months of 2016 were $42.8 million or $1.85 per diluted share compared to $29.2 million or $1.26 per diluted share for the first nine months of 2015, a 47% increase.

Domestic sales increased 20% to $676.3 million for the first nine months of 2016 compared to $562.0 million for the first nine months of 2015.  International sales were $144.6 million for the first nine months of 2016 compared to $206.1 million for the first nine months of 2015, a 30% decrease.

The Company's domestic backlog increased 69% to $325.6 million at September 30, 2016 from $193.1 million at September 30, 2015.  The international backlog at September 30, 2016 was $63.7 million compared to $58.7 million at September 30, 2015, an increase of 9%.  Total backlog increased 55% to $389.3 million at September 30, 2016 from $251.8 million at September 30, 2015.

Consolidated financial information for the quarter and nine months ended September 30, 2016 and additional information related to segment revenues and profits are attached as addenda to this press release.

Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, "We were pleased to improve our earnings by 200% in the third quarter versus the third quarter of last year.  We were able to secure and ship orders at a more profitable rate during the quarter mainly due to favorable infrastructure and wood pellet equipment activity."

Mr. Brock continued, "Despite our strong overall performance, we still face several challenges.  Low oil and natural gas prices have hurt our Energy Group sales.  The mining slowdown has hurt our Aggregate and Mining Group sales.  The strong U.S. Dollar continues to affect our ability to export from our U.S. based operations.  Nonetheless, our year-to-date revenues are up 7% and our year-to-date earnings are up 47% versus last year.  These positive results are mainly due to good domestic markets for our equipment targeted at the infrastructure and wood pellet industries and execution of our margin improvement plans at our operating subsidiaries. Finally, we are also pleased to report that our backlog is up 55% versus last year indicating continued strong demand for our products."

Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 25, 2016, at 10:00 A.M. Eastern Time to review its September 30, 2016 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 8, 2016 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Account #286, Conference ID# 10099.  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, production and combustion 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 strong domestic demand, low oil prices, the global mining slow down, and the strong U.S. Dollar.  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, 2015.

For Additional Information Contact:
Benjamin G. Brock
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.
            
Condensed Consolidated Balance Sheets
            
(in thousands)
            
(unaudited)
            
             
   
Sept 30
    
Sept 30
  
   
2016
    
2015
  
Assets
            
Current assets
            
Cash and cash equivalents
  
$
52,474
    
$
13,985
  
Investments
    
713
      
1,834
  
Receivables, net
    
111,753
      
105,226
  
Inventories
    
399,718
      
384,531
  
Prepaid expenses and other
    
25,909
      
50,398
  
Total current assets
    
590,567
      
555,974
  
Property and equipment, net
    
178,167
      
170,508
  
Other assets
    
93,105
      
60,805
  
Total assets
  
$
861,839
    
$
787,287
  
Liabilities and equity
                
Current liabilities
                
Accounts payable - trade
  
$
53,496
    
$
46,406
  
Other current liabilities
    
136,710
      
91,568
  
Total current liabilities
    
190,206
      
137,974
  
Non-current liabilities
    
26,702
      
36,919
  
Total equity
    
644,931
      
612,394
  
Total liabilities and equity
  
$
861,839
    
$
787,287
  
                 
 
 
Astec Industries, Inc.
                        
Condensed Consolidated Statements of Income
                        
(in thousands, except per share data)
                        
(unaudited)
                        
                         
   
Three Months Ended
    
Nine Months Ended
  
   
Sept 30
      Sept 30    
Sept 30
      Sept 30  
   
2016
    
2015
    
2016
    
2015
  
Net sales
  
$
247,752
    
$
211,350
    
$
820,868
    
$
768,141
  
Cost of sales
    
192,363
      
166,212
      
620,071
      
594,724
  
Gross profit
    
55,389
      
45,138
      
200,797
      
173,417
  
Selling, general, administrative & engineering expenses
    
43,950
      
41,023
      
132,716
      
128,136
  
Income from operations
    
11,439
      
4,115
      
68,081
      
45,281
  
Interest expense
    
264
      
505
      
1,057
      
1,222
  
Other
    
508
      
844
      
1,443
      
3,212
  
Income before income taxes
    
11,683
      
4,454
      
68,467
      
47,271
  
Income taxes
    
4,845
      
2,162
      
25,694
      
18,070
  
Net income attributable to controlling interest
  
$
6,838
    
$
2,292
    
$
42,773
    
$
29,201
  
                                 
                                 
                                 
                                 
Earnings per Common Share
                                
Net income attributable to controlling interest
                                
          Basic
  
$
0.30
    
$
0.10
    
$
1.86
    
$
1.27
  
          Diluted
  
$
0.30
    
$
0.10
    
$
1.85
    
$
1.26
  
                                 
                                 
Weighted average common shares outstanding
                                
          Basic
    
23,001
      
22,943
      
22,989
      
22,930
  
          Diluted
    
23,145
      
23,121
      
23,138
      
23,118
  
                                 
 
 
 
Astec Industries, Inc.
                          
Segment Revenues and Profits
                          
 For the three months ended September 30, 2016 and 2015                          
(in thousands)  
                          
(unaudited)  
                          
   
Infrastructure
Group
    
Aggregate
and Mining
Group
    
Energy
Group
    
Corporate
    
Total
  
2016 Revenues
    
109,227
      
85,819
      
52,706
      
-
      
247,752
  
2015 Revenues
    
85,625
      
80,549
      
45,176
      
-
      
211,350
  
Change $
    
23,602
      
5,270
      
7,530
      
-
      
36,402
  
Change %
    
27.6
%
    
6.5
%
    
16.7
%
    
-
      
17.2
%
                                         
2016 Gross Profit
    
24,929
      
20,935
      
9,473
      
52
      
55,389
  
2016 Gross Profit %
    
22.8
%
    
24.4
%
    
18.0
%
    
-
      
22.4
%
2015 Gross Profit
    
16,104
      
19,226
      
9,794
      
14
      
45,138
  
2015 Gross Profit %
    
18.8
%
    
23.9
%
    
21.7
%
    
-
      
21.4
%
Change
    
8,825
      
1,709
      
(321
)
    
38
      
10,251
  
                                         
2016 Profit (Loss)
    
9,858
      
7,651
      
805
      
(11,610
)
    
6,704
  
2015 Profit (Loss)
    
2,116
      
3,790
      
1,941
      
(6,853
)
    
994
  
Change $
    
7,742
      
3,861
      
(1,136
)
    
(4,757
)
    
5,710
  
Change %
    
365.9
%
    
101.9
%
    
(58.5
%)
    
(69.4
%)
    
574.4
%
 
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 September 30
  
   
2016
    
2015
    
Change $
  
Total profit for all segments
  
$
6,704
    
$
994
    
$
5,710
  
Recapture of intersegment profit
    
131
      
964
      
(833
)
Net loss attributable to non-controlling interest
    
3
      
334
      
(331
)
Net income attributable to controlling interest
  
$
6,838
    
$
2,292
    
$
4,546
  
                         
 
 
 
Astec Industries, Inc.
                          
Segment Revenues and Profits
                          
For the nine months ended September 30, 2016 and 2015                          
(in thousands)
                          
(unaudited)  
                          
   
Infrastructure
Group
    
Aggregate
and Mining
Group
    
Energy
Group
    
Corporate
    
Total
  
2016 Revenues
    
414,817
      
277,393
      
128,658
      
-
      
820,868
  
2015 Revenues
    
336,768
      
285,790
      
145,583
      
-
      
768,141
  
Change $
    
78,049
      
(8,397
)
    
(16,925
)
    
-
      
52,727
  
Change %
    
23.2
%
    
(2.9
%)
    
(11.6
%)
    
-
      
6.9
%
                                         
2016 Gross Profit
    
101,349
      
72,224
      
27,069
      
155
      
200,797
  
2016 Gross Profit %
    
24.4
%
    
26.0
%
    
21.0
%
    
-
      
24.5
%
2015 Gross Profit
    
74,292
      
70,182
      
28,912
      
31
      
173,417
  
2015 Gross Profit %
    
22.1
%
    
24.6
%
    
19.9
%
    
-
      
22.6
%
Change
    
27,057
      
2,042
      
(1,843
)
    
124
      
27,380
  
                                         
2016 Profit (Loss)
    
51,394
      
28,135
      
3,237
      
(40,745
)
    
42,021
  
2015 Profit (Loss)
    
29,472
      
25,441
      
2,805
      
(29,154
)
    
28,564
  
Change $
    
21,922
      
2,694
      
432
      
(11,591
)
    
13,457
  
Change %
    
74.4
%
    
10.6
%
    
15.4
%
    
(39.8
%)
    
47.1
%
                                         
 
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):
 
   
Nine months ended September 30
  
   
2016
    
2015
    
Change $
  
Total profit for all segments
  
$
42,021
    
$
28,564
    
$
13,457
  
Recapture (elimination) of intersegment profit
    
633
      
(32
)
    
665
  
Net loss attributable to non-controlling interest
    
119
      
669
      
(550
)
Net income attributable to controlling interest
  
$
42,773
    
$
29,201
    
$
13,572
  
                         
 
 
 
Astec Industries, Inc.
                    
Backlog by Segment
                    
September 30, 2016 and 2015
                    
(in thousands)
                   
(unaudited)
                   
   
Infrastructure
Group
    
Aggregate
and Mining
Group
    
Energy
Group
    
Total
  
2016 Backlog
    
286,895
      
61,409
      
40,956
      
389,260
  
2015 Backlog
    
145,073
      
68,110
      
38,592
      
251,775
  
Change $
    
141,822
      
(6,701
)
    
2,364
      
137,485
  
Change %
    
97.8
%
    
(9.8
%)
    
6.1
%
    
54.6
%