Tennessee
|
|
001-11595
|
|
62-0873631
|
(State or other jurisdiction
|
|
(Commission
|
|
(IRS Employer
|
of incorporation)
|
|
File Number)
|
|
Identification No.)
|
1725 Shepherd Rd., Chattanooga, TN
|
||||
(Address of principal executive offices)
|
☐
|
Written communications 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-2(b))
|
☐
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
(d)
|
Exhibits
|
|
99.1
|
Press release dated October 23, 2018 issued by the Company
|
Astec Industries, Inc.
(Registrant)
|
|||
Date: October 23, 2018
|
By:
|
/s/ David C. Silvious
|
|
David C. Silvious
|
|||
Chief Financial Officer,
Vice President and Treasurer
|
99.1
|
Earnings release dated October 23, 2018 issued by the Company
|
Astec Industries, Inc.
|
||||||||
Condensed Consolidated Balance Sheets
|
||||||||
(in thousands)
|
||||||||
(unaudited)
|
||||||||
Sept 30
|
Sept 30
|
|||||||
2018
|
2017
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
25,674
|
$
|
66,379
|
||||
Investments
|
2,432
|
1,655
|
||||||
Receivables, net
|
127,523
|
109,693
|
||||||
Inventories
|
429,220
|
399,346
|
||||||
Prepaid expenses and other
|
39,513
|
32,825
|
||||||
Total current assets
|
624,362
|
609,898
|
||||||
Property and equipment, net
|
187,903
|
180,703
|
||||||
Other assets
|
91,199
|
86,411
|
||||||
Total assets
|
$
|
903,464
|
$
|
877,012
|
||||
Liabilities and equity
|
||||||||
Current liabilities
|
||||||||
Accounts payable - trade
|
$
|
74,419
|
$
|
60,107
|
||||
Other current liabilities
|
132,534
|
117,129
|
||||||
Total current liabilities
|
206,953
|
177,236
|
||||||
Long-term debt, less current maturities
|
26,506
|
2,216
|
||||||
Non-current liabilities
|
23,731
|
22,358
|
||||||
Total equity
|
646,274
|
675,202
|
||||||
Total liabilities and equity
|
$
|
903,464
|
$
|
877,012
|
||||
Astec Industries, Inc.
|
||||||||||||||||
Condensed Consolidated Statements of Operations | ||||||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||
Sept 30
|
Sept 30
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Net sales
|
$
|
256,613
|
$
|
252,054
|
$
|
854,595
|
$
|
872,364
|
||||||||
Cost of sales
|
198,329
|
212,970
|
717,197
|
691,985
|
||||||||||||
Gross profit
|
58,284
|
39,084
|
137,398
|
180,379
|
||||||||||||
Selling, general, administrative & engineering expenses
|
51,054
|
45,494
|
154,396
|
142,836
|
||||||||||||
Income (loss) from operations
|
7,230
|
(6,410
|
)
|
(16,998
|
)
|
37,543
|
||||||||||
Interest expense
|
170
|
188
|
488
|
638
|
||||||||||||
Other
|
115
|
1,149
|
1,774
|
2,023
|
||||||||||||
Income (loss) before income taxes
|
7,175
|
(5,449
|
)
|
(15,712
|
)
|
38,928
|
||||||||||
Income taxes
|
180
|
(2,782
|
)
|
(2,301
|
)
|
12,055
|
||||||||||
Net income (loss) attributable to controlling interest
|
$
|
6,995
|
$
|
(2,667
|
)
|
$
|
(13,411
|
)
|
$
|
26,873
|
||||||
Earnings (loss) per Common Share
|
||||||||||||||||
Net income (loss) attributable to controlling interest
|
||||||||||||||||
Basic
|
$
|
0.31
|
$
|
(0.12
|
)
|
$
|
(0.58
|
)
|
$
|
1.17
|
||||||
Diluted
|
$
|
0.30
|
$
|
(0.12
|
)
|
$
|
(0.58
|
)
|
$
|
1.16
|
||||||
Weighted average common shares outstanding
|
||||||||||||||||
Basic
|
22,923
|
23,029
|
23,009
|
23,023
|
||||||||||||
Diluted
|
23,084
|
23,029
|
23,009
|
23,180
|
||||||||||||
Astec Industries, Inc.
|
||||||||||||||||||||
Segment Revenues and Profits (Losses)
|
||||||||||||||||||||
For the three months ended September 30, 2018 and 2017 | ||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Infrastructure
Group
|
Aggregate
and Mining Group |
Energy
Group
|
Corporate
|
Total
|
||||||||||||||||
2018 Revenues
|
87,063
|
101,735
|
67,815
|
-
|
256,613
|
|||||||||||||||
2017 Revenues
|
98,676
|
99,474
|
53,904
|
-
|
252,054
|
|||||||||||||||
Change $
|
(11,613
|
)
|
2,261
|
13,911
|
-
|
4,559
|
||||||||||||||
Change %
|
(11.8
|
%)
|
2.3
|
%
|
25.8
|
%
|
-
|
1.8
|
%
|
|||||||||||
2018 Gross Profit
|
18,642
|
24,294
|
15,282
|
66
|
58,284
|
|||||||||||||||
2018 Gross Profit %
|
21.4
|
%
|
23.9
|
%
|
22.5
|
%
|
-
|
22.7
|
%
|
|||||||||||
2017 Gross Profit
|
1,773
|
23,838
|
13,422
|
51
|
39,084
|
|||||||||||||||
2017 Gross Profit %
|
1.8
|
%
|
24.0
|
%
|
24.9
|
%
|
-
|
15.5
|
%
|
|||||||||||
Change
|
16,869
|
456
|
1,860
|
15
|
19,200
|
|||||||||||||||
2018 Profit (Loss)
|
4,761
|
9,011
|
3,318
|
(9,778
|
)
|
7,312
|
||||||||||||||
2017 Profit (Loss)
|
(12,529
|
)
|
9,565
|
4,460
|
(2,975
|
)
|
(1,479
|
)
|
||||||||||||
Change $
|
17,290
|
(554
|
)
|
(1,142
|
)
|
(6,803
|
)
|
8,791
|
||||||||||||
Change %
|
138.0
|
%
|
(5.8
|
%)
|
(25.6
|
%)
|
(228.7
|
%)
|
594.4
|
%
|
||||||||||
Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits (losses) to the Company's net income (loss) attributable to controlling interest is as follows (in thousands):
|
||||||
|
Three months ended September 30
|
||||||||||||
2018
|
2017
|
Change $
|
||||||||||
Total profit (loss) for all segments
|
$
|
7,312
|
$
|
(1,479
|
)
|
$
|
8,791
|
|||||
Elimination of intersegment profit
|
(410
|
)
|
(1,224
|
)
|
814
|
|||||||
Net loss attributable to non-controlling interest
|
93
|
36
|
57
|
|||||||||
Net income (loss) attributable to controlling interest
|
$
|
6,995
|
$
|
(2,667
|
)
|
$
|
9,662
|
Astec Industries, Inc.
|
||||||||||||||||||||
Segment Revenues and Profits (Losses)
|
||||||||||||||||||||
For the nine months ended September 30, 2018 and 2017 | ||||||||||||||||||||
(in thousands)
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Infrastructure
Group
|
Aggregate
and Mining Group |
Energy
Group
|
Corporate
|
Total
|
||||||||||||||||
2018 Revenues
|
317,359
|
337,100
|
200,136
|
-
|
854,595
|
|||||||||||||||
2017 Revenues
|
407,025
|
307,205
|
158,134
|
-
|
872,364
|
|||||||||||||||
Change $
|
(89,666
|
)
|
29,895
|
42,002
|
-
|
(17,769
|
)
|
|||||||||||||
Change %
|
(22.0
|
%)
|
9.7
|
%
|
26.6
|
%
|
-
|
(2.0
|
%)
|
|||||||||||
2018 Gross Profit
|
4,105
|
82,625
|
50,376
|
292
|
137,398
|
|||||||||||||||
2018 Gross Profit %
|
1.3
|
%
|
24.5
|
%
|
25.2
|
%
|
-
|
16.1
|
%
|
|||||||||||
2017 Gross Profit
|
66,394
|
74,652
|
39,173
|
160
|
180,379
|
|||||||||||||||
2017 Gross Profit %
|
16.3
|
%
|
24.3
|
%
|
24.8
|
%
|
-
|
20.7
|
%
|
|||||||||||
Change
|
(62,289
|
)
|
7,973
|
11,203
|
132
|
(42,981
|
)
|
|||||||||||||
2018 Profit (Loss)
|
(43,121
|
)
|
34,669
|
16,406
|
(20,428
|
)
|
(12,474
|
)
|
||||||||||||
2017 Profit (Loss)
|
15,545
|
29,360
|
10,355
|
(27,666
|
)
|
27,594
|
||||||||||||||
Change $
|
(58,666
|
)
|
5,309
|
6,051
|
7,238
|
(40,068
|
)
|
|||||||||||||
Change %
|
(377.4
|
%)
|
18.1
|
%
|
58.4
|
%
|
26.2
|
%
|
(145.2
|
%)
|
||||||||||
Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits (losses) to the Company's net income (loss) attributable to controlling interest is as follows (in thousands):
|
|||||
|
Nine months ended September 30
|
||||||||||||
2018
|
2017
|
Change $
|
||||||||||
Total profit (loss) for all segments
|
$
|
(12,474
|
)
|
$
|
27,594
|
$
|
(40,068
|
)
|
||||
Elimination of intersegment profit
|
(1,174
|
)
|
(858
|
)
|
(316
|
)
|
||||||
Net loss attributable to non-controlling interest
|
237
|
137
|
100
|
|||||||||
Net income (loss) attributable to controlling interest
|
$
|
(13,411
|
)
|
$
|
26,873
|
$
|
(40,284
|
)
|
||||
Astec Industries, Inc.
|
||||||||||||||||
Backlog by Segment
|
||||||||||||||||
September 30, 2018 and 2017
|
||||||||||||||||
(in thousands)
|
||||||||||||||||
(unaudited)
|
||||||||||||||||
Infrastructure
Group
|
Aggregate
and Mining Group |
Energy
Group
|
Total
|
|||||||||||||
2018 Backlog
|
130,257
|
103,790
|
74,535
|
308,582
|
||||||||||||
2017 Backlog
|
248,893
|
74,625
|
62,953
|
386,471
|
||||||||||||
Change $
|
(118,636
|
)
|
29,165
|
11,582
|
(77,889
|
)
|
||||||||||
Change %
|
(47.7
|
%)
|
39.1
|
%
|
18.4
|
%
|
(20.2
|
%)
|
||||||||
Astec Industries, Inc.
|
||||||||||||||||||||||||
Actual and Ex-Wood Pellet Results for the Third Quarter and Nine Months Ended September 30, 2018 and 2017
|
||||||||||||||||||||||||
Unaudited Proforma
|
||||||||||||||||||||||||
(in millions except per share amounts)
|
||||||||||||||||||||||||
Third Quarter
|
Q3 2018
as Reported |
Q3 2018
Ex-Pellets |
Q3 2017
as Reported |
Q3 2017
Ex-Pellets |
Ex-Pellets
2018 vs 2017 |
% Change
|
||||||||||||||||||
Net Sales
|
256.6
|
256.6
|
252.1
|
265.5
|
(8.9
|
)
|
-3.4
|
%
|
||||||||||||||||
GM%
|
22.7
|
%
|
22.7
|
%
|
15.5
|
%
|
23.3
|
%
|
||||||||||||||||
Op Income (Loss)
|
7.2
|
7.2
|
(6.4
|
)
|
16.3
|
(9.1
|
)
|
-55.8
|
%
|
|||||||||||||||
Net Income (Loss)
|
7.0
|
7.0
|
(2.7
|
)
|
12.0
|
(5.0
|
)
|
-41.7
|
%
|
|||||||||||||||
Per Share Earnings (Loss)
|
0.30
|
0.30
|
(0.12
|
)
|
0.52
|
(0.22
|
)
|
-42.3
|
%
|
|||||||||||||||
EBITDA
|
13.9
|
13.9
|
0.4
|
23.1
|
(9.2
|
)
|
-39.8
|
%
|
||||||||||||||||
EBITDA %
|
5.4
|
%
|
5.4
|
%
|
0.2
|
%
|
8.7
|
%
|
||||||||||||||||
Nine Months
|
YTD 2018
as Reported |
YTD 2018
Ex-Pellets |
YTD 2017
as Reported |
YTD 2017
Ex-Pellets |
Ex-Pellets
2018 vs 2017
|
% Change
|
||||||||||||||||||
Net Sales
|
854.6
|
929.4
|
872.4
|
870.0
|
59.4
|
6.8
|
%
|
|||||||||||||||||
GM%
|
16.1
|
%
|
23.9
|
%
|
20.7
|
%
|
23.9
|
%
|
||||||||||||||||
Op Income (Loss)
|
(17.0
|
)
|
67.3
|
37.5
|
64.6
|
2.7
|
4.2
|
%
|
||||||||||||||||
Net Income (Loss)
|
(13.4
|
)
|
53.9
|
26.9
|
44.5
|
9.4
|
21.1
|
%
|
||||||||||||||||
Per Share Earnings (Loss)
|
(0.58
|
)
|
2.33
|
1.16
|
1.93
|
0.40
|
20.7
|
%
|
||||||||||||||||
EBITDA
|
4.7
|
89.0
|
57.7
|
84.8
|
4.2
|
5.0
|
%
|
|||||||||||||||||
EBITDA %
|
0.5
|
%
|
9.6
|
%
|
6.6
|
%
|
9.7
|
%
|
||||||||||||||||
Astec Industries, Inc.
|
||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data, Ex-Wood Pellets Results
|
||||||||||||||||||||||||||||||||||||||||||||
Unaudited Proforma
|
||||||||||||||||||||||||||||||||||||||||||||
(in thousands except per share amounts)
|
||||||||||||||||||||||||||||||||||||||||||||
2018
|
2018
|
2018
|
2017
|
2017
|
2017
|
2017
|
2016
|
2016
|
2016
|
2016
|
||||||||||||||||||||||||||||||||||
Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | Q4 | Q3 | Q2 | Q1 | ||||||||||||||||||||||||||||||||||
Net Sales
|
256,613
|
347,050
|
325,710
|
306,758
|
265,458
|
297,838
|
306,697
|
255,965
|
228,613
|
276,253
|
251,413
|
|||||||||||||||||||||||||||||||||
Cost of Goods Sold
|
198,329
|
265,018
|
245,016
|
240,557
|
203,636
|
227,451
|
231,428
|
198,221
|
180,377
|
208,272
|
186,496
|
|||||||||||||||||||||||||||||||||
Gross Profit
|
58,284
|
82,031
|
80,694
|
66,202
|
61,822
|
70,387
|
75,269
|
57,744
|
48,236
|
67,981
|
64,917
|
|||||||||||||||||||||||||||||||||
GM%
|
22.7
|
%
|
23.6
|
%
|
24.8
|
%
|
21.6
|
%
|
23.3
|
%
|
23.6
|
%
|
24.5
|
%
|
22.6
|
%
|
21.1
|
%
|
24.6
|
%
|
25.8
|
%
|
||||||||||||||||||||||
SGA&E
|
51,054
|
51,263
|
52,078
|
44,757
|
45,494
|
44,221
|
53,121
|
45,398
|
43,950
|
44,961
|
43,806
|
|||||||||||||||||||||||||||||||||
SGA&E%
|
19.9
|
%
|
14.8
|
%
|
16.0
|
%
|
14.6
|
%
|
17.1
|
%
|
14.8
|
%
|
17.3
|
%
|
17.7
|
%
|
19.2
|
%
|
16.3
|
%
|
17.4
|
%
|
||||||||||||||||||||||
Operating Income
|
7,230
|
30,768
|
28,615
|
21,445
|
16,328
|
26,166
|
22,148
|
12,345
|
4,286
|
23,020
|
21,111
|
|||||||||||||||||||||||||||||||||
Operating Income %
|
2.8
|
%
|
8.9
|
%
|
8.8
|
%
|
7.0
|
%
|
6.2
|
%
|
8.8
|
%
|
7.2
|
%
|
4.8
|
%
|
1.9
|
%
|
8.3
|
%
|
8.4
|
%
|
||||||||||||||||||||||
Other Income (Expense)
|
(147
|
)
|
884
|
311
|
433
|
926
|
76
|
247
|
(327
|
)
|
241
|
(50
|
)
|
76
|
||||||||||||||||||||||||||||||
Pre-tax Income
|
7,083
|
31,652
|
28,927
|
21,878
|
17,253
|
26,242
|
22,395
|
12,018
|
4,527
|
22,970
|
21,187
|
|||||||||||||||||||||||||||||||||
PTI%
|
2.8
|
%
|
9.1
|
%
|
8.9
|
%
|
7.1
|
%
|
6.5
|
%
|
8.8
|
%
|
7.3
|
%
|
4.7
|
%
|
2.0
|
%
|
8.3
|
%
|
8.4
|
%
|
||||||||||||||||||||||
Income Tax Expense
|
180
|
7,755
|
6,639
|
8,787
|
5,227
|
8,617
|
7,640
|
3,888
|
2,162
|
8,319
|
7,334
|
|||||||||||||||||||||||||||||||||
Tax Rate
|
2.5
|
%
|
24.5
|
%
|
23.0
|
%
|
40.2
|
%
|
30.3
|
%
|
32.8
|
%
|
34.1
|
%
|
32.4
|
%
|
47.7
|
%
|
36.2
|
%
|
34.6
|
%
|
||||||||||||||||||||||
Income before Minorty Interest
|
6,903
|
23,897
|
22,288
|
13,090
|
12,027
|
17,625
|
14,755
|
8,130
|
2,366
|
14,652
|
13,853
|
|||||||||||||||||||||||||||||||||
Minority Interest
|
93
|
94
|
50
|
68
|
36
|
61
|
40
|
52
|
3
|
51
|
65
|
|||||||||||||||||||||||||||||||||
Net Income
|
6,995
|
23,991
|
22,338
|
13,158
|
12,063
|
17,686
|
14,795
|
8,182
|
2,369
|
14,703
|
13,918
|
|||||||||||||||||||||||||||||||||
Fully Diluted Shares
|
23,084
|
23,226
|
23,236
|
23,194
|
23,182
|
23,183
|
23,176
|
23,153
|
23,145
|
23,135
|
23,135
|
|||||||||||||||||||||||||||||||||
EPS
|
0.30
|
1.03
|
0.96
|
0.57
|
0.52
|
0.76
|
0.64
|
0.35
|
0.10
|
0.64
|
0.60
|
|||||||||||||||||||||||||||||||||
EBITDA
|
13,918
|
38,568
|
35,900
|
28,453
|
23,144
|
32,701
|
28,935
|
18,921
|
10,952
|
29,112
|
27,305
|
|||||||||||||||||||||||||||||||||
Backlog
|
308,582
|
302,892
|
380,372
|
341,369
|
310,871
|
295,411
|
308,969
|
284,031
|
250,178
|
216,603
|
270,515
|
|||||||||||||||||||||||||||||||||