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| 8-K - EARNINGS RELEASE Q1-2012 - ASTEC INDUSTRIES INC | f8k-042412.htm |
Exhibit 99.1
Astec Industries, Inc.
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
ASTEC Q1 2012 EARNINGS UP 20% ON 16% INCREASE IN SALES
CHATTANOOGA, Tenn. (April 24, 2012) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their first quarter ended March 31, 2012. Net sales for the first quarter of 2012 were $266.6 million compared to $230.2 million for the first quarter of 2011, a 16% increase. Earnings for the first quarter of 2012 were $12.2 million or $0.53 per diluted share compared to earnings for the first quarter of 2011 of $10.1 million or $0.44 per diluted share, an increase of $0.09 or 20% per diluted share.
International sales increased 27%, from $82.7 million for the first quarter of 2011 to $105.2 million for the first quarter of 2012. Domestic sales were $161.4 million for the first quarter of 2012 compared to $147.5 million for the first quarter of 2011, a 9% increase.
The Company’s domestic backlog increased 30%, from $124.8 million at March 31, 2011 to $162.8 million at March 31, 2012. The international backlog at March 31, 2012 was $122.8 million, a 12% decrease from the March 31, 2011 international backlog of $139.9 million. The March 31, 2011 backlog has been restated to reflect acquisitions made late in 2011.
Consolidated financial information for the first quarter ended March 31, 2012 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, “We are pleased with our sales and earnings growth during the first quarter of 2012. Our sales growth was in line with our expectations but our gross margins are not where we want them. Although they improved over the fourth quarter of 2011, we will continue to focus on improving our gross margins and refining our manufacturing processes on our new products. The expiration of the R&D tax credit at the end of 2011 resulted in a first quarter increase in our effective tax rate to 37% from our historical average of 35%, reducing earnings by $0.02 per share.”
Dr. Brock continued, “Considering the many uncertainties in our economy and the environment of regulatory change, we believe our revenue and earnings growth validates our strategy over the past two years. We will continue to actively seek accretive bolt-on acquisitions and to develop new products to meet the needs of our customers.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 24, 2012, 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 Friday, May 8, 2012 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 392851. 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 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 in the second quarter of 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, 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, 2011.
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 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
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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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Mar 31
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Mar 31
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2012
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2011
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Assets
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Current assets
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Cash and cash equivalents
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$ | 41,642 | $ | 80,171 | ||||
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Receivables, net
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113,609 | 100,221 | ||||||
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Inventories
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313,407 | 272,663 | ||||||
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Prepaid expenses and other
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21,976 | 21,173 | ||||||
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Total current assets
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490,634 | 474,228 | ||||||
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Property and equipment, net
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191,489 | 167,567 | ||||||
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Other assets
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43,607 | 35,025 | ||||||
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Total assets
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$ | 725,730 | $ | 676,820 | ||||
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Liabilities and equity
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Current liabilities
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Accounts payable - trade
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$ | 56,137 | $ | 52,124 | ||||
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Other accrued liabilities
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92,593 | 92,684 | ||||||
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Total current liabilities
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148,730 | 144,808 | ||||||
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Other non-current liabilities
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33,901 | 29,987 | ||||||
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Total equity
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543,099 | 502,025 | ||||||
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Total liabilities and equity
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$ | 725,730 | $ | 676,820 | ||||
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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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Mar 31
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2012
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2011
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Net sales
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$ | 266,637 | $ | 230,189 | ||||
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Cost of sales
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205,991 | 175,485 | ||||||
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Gross profit
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60,646 | 54,704 | ||||||
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Selling, general, administrative & engineering expenses
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41,887 | 39,489 | ||||||
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Income from operations
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18,759 | 15,215 | ||||||
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Interest expense
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47 | 36 | ||||||
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Other income, net of expenses
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850 | 406 | ||||||
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Income before income taxes
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19,562 | 15,585 | ||||||
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Income taxes
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7,304 | 5,427 | ||||||
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Net income
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12,258 | 10,158 | ||||||
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Net income attributable to noncontolling interest
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13 | 14 | ||||||
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Net income attributable to controlling interest
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$ | 12,245 | $ | 10,144 | ||||
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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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$ | 0.54 | $ | 0.45 | ||||
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Diluted
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$ | 0.53 | $ | 0.44 | ||||
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Weighted average common shares outstanding
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Basic
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22,643,406 | 22,566,105 | ||||||
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Diluted
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23,053,873 | 22,919,430 | ||||||
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the three months ended March 31, 2012 and 2011
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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
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Total
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2012 Revenues
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68,671 | 91,304 | 41,993 | 36,729 | 27,940 | 266,637 | ||||||||||||||||||
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2011 Revenues
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73,754 | 78,853 | 49,955 | 11,667 | 15,960 | 230,189 | ||||||||||||||||||
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Change $
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(5,083 | ) | 12,451 | (7,962 | ) | 25,062 | 11,980 | 36,448 | ||||||||||||||||
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Change %
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(6.9 | %) | 15.8 | % | (15.9 | %) | 214.8 | % | 75.1 | % | 15.8 | % | ||||||||||||
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2012 Gross Profit
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16,396 | 23,737 | 10,604 | 5,134 | 4,775 | 60,646 | ||||||||||||||||||
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2012 Gross Profit %
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23.9 | % | 26.0 | % | 25.3 | % | 14.0 | % | 17.1 | % | 22.7 | % | ||||||||||||
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2011 Gross Profit
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19,228 | 18,749 | 13,440 | 123 | 3,164 | 54,704 | ||||||||||||||||||
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2011 Gross Profit %
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26.1 | % | 23.8 | % | 26.9 | % | 1.1 | % | 19.8 | % | 23.8 | % | ||||||||||||
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Change
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(2,832 | ) | 4,988 | (2,836 | ) | 5,011 | 1,611 | 5,942 | ||||||||||||||||
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2012 Profit (Loss)
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7,391 | 9,571 | 3,921 | 128 | (9,280 | ) | 11,731 | |||||||||||||||||
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2011 Profit (Loss)
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10,820 | 5,622 | 7,312 | (3,849 | ) | (8,500 | ) | 11,405 | ||||||||||||||||
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Change $
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(3,429 | ) | 3,949 | (3,391 | ) | 3,977 | (780 | ) | 326 | |||||||||||||||
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Change %
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(31.7 | %) | 70.2 | % | (46.4 | %) | 103.3 | % | (9.2 | %) | 2.9 | % | ||||||||||||
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 March 31
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2012
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2011
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Change $
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Total profit for all segments
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$ | 11,731 | $ | 11,405 | $ | 326 | ||||||
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Net income attributable to non-controlling interest in subsidiary
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(13 | ) | (14 | ) | 1 | |||||||
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Recapture (elimination) of intersegment profit
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527 | (1,247 | ) | 1,774 | ||||||||
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Net income attributable to controlling interest
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$ | 12,245 | $ | 10,144 | $ | 2,101 | ||||||
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Astec Industries, Inc.
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Backlog by Segment
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March 31, 2012 and 2011
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(in thousands)
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(unaudited)
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Asphalt Group
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Aggregate
and Mining Group |
Mobile
Asphalt
Paving Group |
Underground
Group |
All Others
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Total
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2012 Backlog
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123,327 | 102,686 | 10,799 | 35,816 | 12,980 | 285,608 | ||||||||||||||||||
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2011 Backlog
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111,515 | 92,308 | 19,911 | 33,198 | 7,774 | 264,706 | ||||||||||||||||||
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Change $
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11,812 | 10,378 | (9,112 | ) | 2,618 | 5,206 | 20,902 | |||||||||||||||||
| Change % | 10.6 | % | 11.2 | % | (45.8 | %) | 7.9 | % | 67.0 | % | 7.9 | % | ||||||||||||