CHATTANOOGA, Tenn., Feb. 20, 2018 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their fourth quarter and year ended December 31, 2017. 

Net sales for the fourth quarter of 2017 were $312.4 million compared to $326.6 million for the fourth quarter of 2016, a 4.3% decrease. Domestic sales decreased 7.4% to $245.4 million for the fourth quarter of 2017 from $265.0 million for the fourth quarter of 2016.  International sales were $67.0 million for the fourth quarter of 2017 compared to $61.6 million for the fourth quarter of 2016, an increase of 8.7%.

Earnings for the fourth quarter of 2017 were $10.9 million, or $0.47 per share, including an income tax benefit from U.S. Tax Reform legislation of $1.1 million, compared to $12.4 million, or $0.53 per diluted share, for the fourth quarter of 2016, a decrease of 11.3% per diluted share.    

Net sales for 2017 were $1.185 billion compared to $1.147 billion for 2016, a 3.3% increase.  Domestic sales decreased 1.0% to $932.3 million for 2017 from $941.3 million for 2016.  International sales were $252.4 million for 2017 compared to $206.2 million for 2016, an increase of 22.5%.     

Earnings for 2017 were $37.8 million, or $1.63 per diluted share, compared to $55.2 million, or $2.38 per diluted share, for 2016, a decrease of 31.5% per diluted share.  As previously announced, the Company initiated significant design upgrades to its customers’ Georgia and Arkansas wood pellet plants to meet full production rates, which negatively impacted earnings per share by approximately $0.59 during the third quarter of 2017.

Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, “We were pleased to exceed our previously announced earnings projection for the quarter while increasing our backlog to a historically strong $411.5 million.  Given our backlog, quote activity and conversations with our customers in both domestic and international markets we are optimistic on our outlook.  Our customers are experiencing good market conditions and we are excited for the opportunity to have improved results in 2018.”

The Company’s backlog at December 31, 2017 was $411.5 million compared to $361.8 million at December 31, 2016, an increase of $49.6 million or 13.7%.  Domestic backlog increased 12.3% to $335.9 million at December 31, 2017 from $299.1 million at December 31, 2016.  The international backlog at December 31, 2017 was $75.6 million compared to $62.7 million at December 31, 2016, an increase of 20.5%.  Excluding pellet plant backlogs, the Company’s December 31, 2017 backlog increased $57.3 million, or 22.9%, compared to December 31, 2016.  All backlog numbers for prior periods have been recast to include the backlog of RexCon, Inc. acquired in October, 2017.

Consolidated financial information for the fourth quarter and year ended December 31, 2017 and additional information related to segment revenues and profits are attached as addenda to this press release.

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on Tuesday, February 20, 2018 at 10:00 A.M. Eastern Time to review its fourth 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, March 6, 2018 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Conference ID #25199.  A transcript 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; wood processing and concrete production.  Astec’s manufacturing operations are divided into three primary business segments: road building, wood pellet production 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, concrete 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.  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, gas 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, 2016. 

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.
Consolidated Balance Sheets
(in thousands)
(unaudited)
	Dec 31			Dec 31
	2017			2016
Assets
Current assets
Cash and cash equivalents	$	62,280		$	82,371
Investments		1,624			1,024
Receivables, net		119,952			110,673
Inventories		391,379			360,404
Prepaid expenses and other		27,734			22,361
Total current assets		602,969			576,833
Property and equipment, net		190,396			180,538
Other assets		96,214			86,230
Total assets	$	889,579		$	843,601
Liabilities and equity
Current liabilities
Accounts payable - trade	$	60,417		$	57,297
Other current liabilities		118,729			111,564
Total current liabilities		179,146			168,861
Non-current liabilities		23,668			25,899
Total equity		686,765			648,841
Total liabilities and equity	$	889,579		$	843,601
Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
	Three Months Ended						Twelve Months Ended
	Dec 31						Dec 31
		2017			2016			2017			2016
Net sales	$	312,375		$	326,564		$	1,184,739		$	1,147,431
Cost of sales		249,625			262,092			941,610			882,162
Gross profit		62,750			64,472			243,129			265,269
Selling, general, administrative & engineering expenses		44,756			45,398			187,592			178,114
Income from operations		17,994			19,074			55,537			87,155
Interest expense		202			338			840			1,395
Other		702			63			2,725			1,506
Income before income taxes		18,494			18,799			57,422			87,266
Income taxes		7,572			6,413			19,627			32,107
Net income attributable to controlling interest	$	10,922		$	12,386		$	37,795		$	55,159
Earnings per Common Share
Net income attributable to controlling interest
Basic	$	0.47		$	0.54		$	1.64		$	2.40
Diluted	$	0.47		$	0.53		$	1.63		$	2.38
Weighted average common shares outstanding
Basic		23,033			23,002			23,025			22,992
Diluted		23,194			23,154			23,184			23,142

 

Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended December 31, 2017 and 2016
(in thousands)
(unaudited)
	Infrastructure Group			Aggregate and Mining Group			Energy Group			Corporate			Total
2017 Revenues	$	146,666		$	96,515		$	69,194		$	-		$	312,375
2016 Revenues		194,090			82,367			50,107			-			326,564
Change $		(47,424)			14,148			19,087			-			(14,189)
Change %		(24.4%)			17.2%			38.1%			-			(4.3%)
2017 Gross Profit		26,632			19,140			16,601			377			62,750
2017 Gross Profit %		18.2%			19.8%			24.0%			-			20.1%
2016 Gross Profit		34,498			19,128			10,752			94			64,472
2016 Gross Profit %		17.8%			23.2%			21.5%			-			19.7%
Change		(7,866)			12			5,849			283			(1,722)
2017 Profit (Loss)		11,096			6,388			5,864			(13,297)			10,051
2016 Profit (Loss)		20,088			6,742			908			(15,247)			12,491
Change $		(8,992)			(354)			4,956			1,950			(2,440)
Change %		(44.8%)			(5.3%)			545.8%			12.8%			(19.5%)

 

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 December 31
				2017			2016		Change $
Total profit for all segments			$	10,051		$	12,491		$	(2,440)
Recapture (elimination) of intersegment profit				803			(157)			960
Net  loss attributable to non-controlling interest				68			52			16
Net income attributable to controlling interest			$	10,922		$	12,386		$	(1,464)

  

Astec Industries, Inc.
Segment Revenues and Profits
For the twelve months ended December 31, 2017 and 2016
(in thousands)
(unaudited)
	Infrastructure Group			Aggregate and Mining Group			Energy Group			Corporate			Total
2017 Revenues	$	553,691		$	403,720		$	227,328		$	-		$	1,184,739
2016 Revenues		608,908			359,760			178,763			-			1,147,431
Change $		(55,217)			43,960			48,565			-			37,308
Change %		(9.1%)			12.2%			27.2%			-			3.3%
2017 Gross Profit		93,027			93,792			55,774			536			243,129
2017 Gross Profit %		16.8%			23.2%			24.5%			-			20.5%
2016 Gross Profit		135,848			91,352			37,820			249			265,269
2016 Gross Profit %		22.3%			25.4%			21.2%			-			23.1%
Change		(42,821)			2,440			17,954			287			(22,140)
2017 Profit (Loss)		26,641			35,748			16,219			(40,963)			37,645
2016 Profit (Loss)		71,482			34,877			4,145			(55,992)			54,512
Change $		(44,841)			871			12,074			15,029			(16,867)
Change %		(62.7%)			2.5%			291.3%			26.8%			(30.9%)

 

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):
				Twelve months ended December 31
				2017				2016		Change $
Total profit for all segments				$	37,645		$	54,512		$	(16,867)
Recapture (elimination) of intersegment profit					(55)			476			(531)
Net loss attributable to non-controlling interest					205			171			34
Net income attributable to controlling interest				$	37,795		$	55,159		$	(17,364)
Astec Industries, Inc.
Backlog by Segment
December 31, 2017 and 2016
(in thousands)
(unaudited)
	Infrastructure Group			Aggregate and Mining Group			Energy Group			Total
2017 Backlog	$	239,495		$	116,987		$	54,987		$	411,469
2016 Backlog		232,224			88,951			40,656			361,831
Change $		7,271			28,036			14,331			49,638
Change %		3.1%			31.5%			35.2%			13.7%