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| 8-K - EARNINGS RELEASE - ASTEC INDUSTRIES INC | f8k-022112.htm |
Astec Industries, Inc.
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
ASTEC INDUSTRIES REPORTS FOURTH QUARTER AND 2011 RESULTS
CHATTANOOGA, Tenn. (February 21, 2012) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its fourth quarter and year ended December 31, 2011. Net sales for the fourth quarter of 2011 were $263.2 million compared to $190.8 million for the fourth quarter of 2010, a 38% increase. Earnings for the fourth quarter of 2011 were $8.0 million or $0.35 per diluted share compared to the fourth quarter of 2010 earnings of $6.0 million or $0.26 per diluted share, an increase of $0.09 or 35% per diluted share. The fourth quarter results included charges of $2.2 million related to the sale of the utility trencher product line in the Underground Group. Excluding these charges, earnings for the fourth quarter of 2011 were $9.4 million or $0.41 per diluted share.
For the fourth quarter of 2011, domestic sales were $147.1 million or 56% of net sales compared to $119.6 million or 63% of net sales for the fourth quarter of 2010, a 23% increase. International sales were $116.0 million in the fourth quarter of 2011 or 44% of net sales, a 63% increase over the fourth quarter of 2010 international sales of $71.2 million, or 37% of net sales.
Net sales for the year ended December 31, 2011 were $955.7 million compared to $771.3 million for the same period in 2010, an increase of 24%. Earnings for the year ended December 31, 2011 were $39.9 million or $1.74 per diluted share compared to $32.4 million or $1.42 per diluted share for 2010, an increase of $0.32 or 22% per diluted share. Results for the year ended December 31, 2011 included charges of $2.2 million related to the sale of the utility trencher product line in the Underground Group and an impairment charge of $2.3 million related to a company aircraft that is held for sale. Excluding these items, earnings for the year ended December 31, 2011 were $42.7 million, or $1.86 per diluted share.
Domestic sales for 2011 were $561.4 million or 59% of net sales, an 18% increase over 2010 domestic sales of $476.9 million, or 62% of 2010 net sales. International sales were $394.3 million or 41% of 2011 net sales, a 34% increase over 2010 international sales of $294.4 million, or 38% of 2010 net sales.
The Company’s domestic backlog at December 31, 2011 was $148.0 million compared to $111.0 million at December 31, 2010, an increase of $37.0 million or 33%. The international backlog at December 31, 2011 was $131.6 million compared to $122.1 million at the end of 2010, an increase of 8%. All backlog amounts for 2010 have been restated to reflect 2011 acquisitions.
Consolidated financial information for the fourth quarter and year ended December 31, 2011, additional information related to segment revenues, profits and backlogs, and a reconciliation of earnings as reported to earnings before special items are attached as addenda to this press release.
Dr. J. Don Brock, Chairman and Chief Executive Officer, commented, “We are pleased with our performance for the fourth quarter and for the year of 2011. The numbers alone, unfortunately, do not show the great effort that our employees and managers put into making our company perform and in preparing it for future growth. During the year, we acquired two companies, started a new joint venture company in Brazil, bought two new facilities, expanded three of our existing facilities, negotiated the sale of the utility product line, and developed a number of new products.
The magnitude of product development far exceeds the expense and effort of any prior year. We believe that the products that were and are being developed will expand our presence in all segments of the energy, mining, and infrastructure markets."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 21, 2012, at 10:00 a.m. EST to review its fourth quarter and fiscal 2011 financial results as well as its near term general outlook for 2012. 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 at: 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, March 6, 2012, by dialing (877) 660-6853 or (201) 612-7415 for international callers; Account #: 286; Conference ID #:388830. A transcription of the conference call will be made available under the investor relations section of the Astec Industries, Inc. website within five business 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 primary business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment. Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.
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 2012, the effects on the Company from its backlog, the effects of our recent acquisitions, dispositions, and joint ventures, and the success of our product development activities. 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, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, the success of new business models and products, general business conditions in the industry, demand for the Company’s products both domestic and international, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected 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, 2010 and the Company’s quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2011. The Company plans to file its Form 10-K timely by February 29, 2012.
For Additional Information Contact:
J. Don Brock
Chairman of the Board & C.E.O.
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
David C. Silvious
Vice President, Chief Financial Officer and Treasurer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: dsilvious@astecindustries.com
or
Stephen C. Anderson
Director of Investor Relations
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
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Astec Industries, Inc.
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Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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Dec 31
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Dec 31
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2011
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2010
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Assets
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Current assets
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Cash and cash equivalents
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$ | 57,505 | $ | 94,597 | ||||
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Receivables, net
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102,060 | 80,863 | ||||||
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Inventories
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299,065 | 252,981 | ||||||
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Prepaid expenses and other
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26,924 | 19,380 | ||||||
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Total current assets
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485,554 | 447,821 | ||||||
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Property and equipment, net
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188,018 | 168,242 | ||||||
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Other assets
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43,311 | 33,576 | ||||||
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Total assets
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$ | 716,883 | $ | 649,639 | ||||
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Liabilities and equity
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Current liabilities
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Accounts payable - trade
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$ | 55,170 | $ | 44,493 | ||||
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Other accrued liabilities
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98,852 | 85,933 | ||||||
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Total current liabilities
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154,022 | 130,426 | ||||||
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Other non-current liabilities
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33,678 | 26,407 | ||||||
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Total equity
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529,183 | 492,806 | ||||||
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Total liabilities and equity
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$ | 716,883 | $ | 649,639 | ||||
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Astec Industries, Inc.
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Consolidated Statements of Income
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| (in thousands, except shares and share data) | ||
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(unaudited)
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Three Months Ended
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Twelve Months Ended
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Dec 31
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Dec 31
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2011
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2010
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2011
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2010
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Net sales
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$ | 263,160 | $ | 190,779 | $ | 955,729 | $ | 771,335 | ||||||||
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Cost of sales
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207,440 | 146,491 | 736,935 | 592,288 | ||||||||||||
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Gross profit
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55,720 | 44,288 | 218,794 | 179,047 | ||||||||||||
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Selling, general, administrative & engineering expenses
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43,458 | 36,272 | 161,267 | 131,623 | ||||||||||||
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Income from operations
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12,262 | 8,016 | 57,527 | 47,424 | ||||||||||||
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Interest expense
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54 | 62 | 193 | 352 | ||||||||||||
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Other income, net of expenses
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931 | 528 | 1,967 | 1,631 | ||||||||||||
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Income before income taxes
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13,139 | 8,482 | 59,301 | 48,703 | ||||||||||||
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Income taxes
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5,147 | 2,467 | 19,281 | 16,131 | ||||||||||||
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Net income
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7,992 | 6,015 | 40,020 | 32,572 | ||||||||||||
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Net income attributable to noncontolling interest
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28 | 48 | 102 | 142 | ||||||||||||
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Net income attributable to controlling interest
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$ | 7,964 | $ | 5,967 | $ | 39,918 | $ | 32,430 | ||||||||
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Earnings per Common Share
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Net income attributable to controlling interest
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Basic
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$ | 0.35 | $ | 0.26 | $ | 1.77 | $ | 1.44 | ||||||||
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Diluted
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$ | 0.35 | $ | 0.26 | $ | 1.74 | $ | 1.42 | ||||||||
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Weighted average common shares outstanding
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Basic
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22,613,285 | 22,553,426 | 22,588,721 | 22,517,246 | ||||||||||||
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Diluted
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23,018,309 | 22,874,394 | 22,984,221 | 22,829,799 | ||||||||||||
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the three months ended December 31, 2011 and 2010
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(in thousands)
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(unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others |
Total |
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2011 Revenues
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68,009 | 84,630 | 45,424 | 26,246 | 38,851 | 263,160 | ||||||||||||||||||
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2010 Revenues
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45,518 | 70,218 | 40,441 | 18,322 | 16,280 | 190,779 | ||||||||||||||||||
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Change $
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22,491 | 14,412 | 4,983 | 7,924 | 22,571 | 72,381 | ||||||||||||||||||
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Change %
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49.4 | % | 20.5 | % | 12.3 | % | 43.2 | % | 138.6 | % | 37.9 | % | ||||||||||||
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2011 Gross Profit
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16,665 | 21,552 | 10,804 | 643 | 6,056 | 55,720 | ||||||||||||||||||
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2011 Gross Profit %
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24.5 | % | 25.5 | % | 23.8 | % | 2.4 | % | 15.6 | % | 21.2 | % | ||||||||||||
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2010 Gross Profit
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9,894 | 17,491 | 11,442 | 1,946 | 3,515 | 44,288 | ||||||||||||||||||
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2010 Gross Profit %
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21.7 | % | 24.9 | % | 28.3 | % | 10.6 | % | 21.6 | % | 23.2 | % | ||||||||||||
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Change
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6,771 | 4,061 | (638 | ) | (1,303 | ) | 2,541 | 11,432 | ||||||||||||||||
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2011 Profit (Loss)
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8,889 | 8,379 | 5,666 | (3,940 | ) | (12,091 | ) | 6,903 | ||||||||||||||||
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2010 Profit (Loss)
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4,262 | 4,347 | 6,571 | (1,080 | ) | (9,079 | ) | 5,021 | ||||||||||||||||
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Change $
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4,627 | 4,032 | (905 | ) | (2,860 | ) | (3,012 | ) | 1,882 | |||||||||||||||
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Change %
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108.6 | % | 92.8 | % | (13.8 | %) | (264.8 | %) | (33.2 | %) | 37.5 | % | ||||||||||||
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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):
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| Three months ended December 31 |
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2011
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2010
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Change $
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Total profit for all segments
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$ | 6,903 | $ | 5,021 | $ | 1,882 | ||||||
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Net income attributable to non-controlling interest in subsidiary
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(28 | ) | (48 | ) | 20 | |||||||
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Recapture of intersegment profit
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1,089 | 994 | 95 | |||||||||
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Net income attributable to controlling interest
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$ | 7,964 | $ | 5,967 | $ | 1,997 | ||||||
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the twelve months ended December 31, 2011 and 2010
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(in thousands)
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(unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others |
Total |
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2011 Revenues
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260,404 | 333,278 | 187,988 | 84,771 | 89,288 | 955,729 | ||||||||||||||||||
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2010 Revenues
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226,419 | 256,400 | 166,436 | 60,105 | 61,975 | 771,335 | ||||||||||||||||||
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Change $
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33,985 | 76,878 | 21,552 | 24,666 | 27,313 | 184,394 | ||||||||||||||||||
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Change %
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15.0 | % | 30.0 | % | 12.9 | % | 41.0 | % | 44.1 | % | 23.9 | % | ||||||||||||
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2011 Gross Profit
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61,151 | 83,389 | 49,962 | 8,780 | 15,512 | 218,794 | ||||||||||||||||||
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2011 Gross Profit %
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23.5 | % | 25.0 | % | 26.6 | % | 10.4 | % | 17.4 | % | 22.9 | % | ||||||||||||
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2010 Gross Profit
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56,063 | 60,716 | 44,580 | 4,464 | 13,224 | 179,047 | ||||||||||||||||||
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2010 Gross Profit %
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24.8 | % | 23.7 | % | 26.8 | % | 7.4 | % | 21.3 | % | 23.2 | % | ||||||||||||
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Change
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5,088 | 22,673 | 5,382 | 4,316 | 2,288 | 39,747 | ||||||||||||||||||
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2011 Profit (Loss)
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29,310 | 31,493 | 26,485 | (7,106 | ) | (38,216 | ) | 41,966 | ||||||||||||||||
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2010 Profit (Loss)
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28,672 | 16,578 | 23,234 | (8,092 | ) | (27,138 | ) | 33,254 | ||||||||||||||||
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Change $
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638 | 14,915 | 3,251 | 986 | (11,078 | ) | 8,712 | |||||||||||||||||
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Change %
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2.2 | % | 90.0 | % | 14.0 | % | 12.2 | % | (40.8 | %) | 26.2 | % | ||||||||||||
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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):
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| Twelve months ended December 31 |
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2011
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2010
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Change $
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Total profit for all segments
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$ | 41,966 | $ | 33,254 | $ | 8,712 | ||||||
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Net income attributable to non-controlling interest in subsidiary
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(102 | ) | (142 | ) | 40 | |||||||
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Elimination of intersegment profit
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(1,946 | ) | (682 | ) | (1,264 | ) | ||||||
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Net income attributable to controlling interest
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$ | 39,918 | $ | 32,430 | $ | 7,488 | ||||||
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Astec Industries, Inc.
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Backlog by Segment
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December 31, 2011 and 2010
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(in thousands)
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(Unaudited)
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Asphalt
Group |
Aggregate
and Mining Group |
Mobile
Asphalt Paving Group |
Underground
Group |
All Others |
Total |
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2011 Backlog
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115,775 | 98,262 | 6,149 | 32,322 | 27,090 | 279,598 | ||||||||||||||||||
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2010 Backlog
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108,792 | 81,958 | 15,109 | 21,356 | 5,925 | 233,140 | ||||||||||||||||||
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Change $
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6,983 | 16,304 | (8,960 | ) | 10,966 | 21,165 | 46,458 | |||||||||||||||||
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Change %
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6.4 | % | 19.9 | % | (59.3 | %) | 51.3 | % | 357.2 | % | 19.9 | % | ||||||||||||
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Astec Industries, Inc. and Subsidiaries
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| Reconciliation of Net Income Attributable to Controlling Interest as Reported to | ||
| Net Income Attributable to Controlling Interest before Special Items | ||
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(in thousands, except per share data)
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(unaudited)
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Three
Months Ended |
Twelve
Months Ended |
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December 31
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December 31
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2011
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2011
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Net income attributable to controlling interest as reported
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$ | 7,964 | $ | 39,918 | ||||
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Special items
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Utility trencher product line charges, net of tax benefit of $871
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1,368 | 1,368 | ||||||
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Company aircraft impairment charge, net of tax benefit of $917
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81 | 1,387 | ||||||
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Net income attributable to controlling interest before special items
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$ | 9,413 | $ | 42,673 | ||||
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Net income attributable to controlling interest per diluted share as reported:
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$ | 0.35 | $ | 1.74 | ||||
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Special items, net of tax, per diluted share:
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Utility trencher product line charges
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0.06 | 0.06 | ||||||
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Company aircraft impairment charge
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0.00 | 0.06 | ||||||
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Net income attributable to controlling interest before special items per diluted share:
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$ | 0.41 | $ | 1.86 | ||||
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The table above reconciles net income attributable to controlling interest and earnings per share as reported according to GAAP with their related non-GAAP measures as discussed in this release. We believe these non-GAAP measures are helpful to investors in assessing the company's ongoing performance as well as providing comparability with commonly used financial metrics used in the investing community.
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