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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Astec Industries Inc | NASDAQ:ASTE | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-0.39 | -1.15% | 33.58 | 33.58 | 33.75 | 34.05 | 33.50 | 34.05 | 15,606 | 15:22:51 |
“Despite a difficult first quarter, we remain optimistic for the year. We anticipate Materials Solutions softness to be offset by a strong Infrastructure Solutions market. Declines during the first quarter in the Materials Solutions segment were primarily due to longer product conversion cycles from rental to buy and finance capacity constraints attributable to the challenging interest rate environment. Infrastructure Solutions sales were affected by supply chain delays from a specific supplier and are expected to ship during the second quarter.” said Jaco van der Merwe, Chief Executive Officer. “We anticipate a continuation of challenging conditions in our Materials Solutions segment in the first half of the year, resulting in more conversions occurring towards the end of the year. In our Infrastructure Solutions segment, we continue to see strong demand for asphalt and concrete plants and project activity at the federal, state and local levels remains robust. As we navigate these near-term headwinds, we are focused on maintaining efficient operations and performing for our customers while deploying our long term strategy."
Mr. van der Merwe continued, "We see additional opportunity ahead supported by the expansion of our collaboration with dealers to develop best-in-class aftermarket practices in both Infrastructure Solutions and Materials Solutions and the rollout of new products in 2024, and we will remain focused on driving margin enhancement and working capital improvements."
(in millions, except per share and percentage data) | 1Q 2024 | 1Q 2023 | Change | |||||||
Net sales | $ | 309.2 | $ | 347.9 | (11.1) | % | ||||
Domestic sales | 243.2 | 281.3 | (13.5) | % | ||||||
International sales | 66.0 | 66.6 | (0.9) | % | ||||||
Backlog | 559.8 | 800.2 | (30.0) | % | ||||||
Domestic backlog | 437.8 | 685.7 | (36.2) | % | ||||||
International backlog | 122.0 | 114.5 | 6.6 | % | ||||||
Income from operations | 6.3 | 17.6 | (64.2) | % | ||||||
Operating margin | 2.0 | % | 5.1 | % | (310) | bps | ||||
Effective tax rate | 29.8 | % | 26.7 | % | 310 | bps | ||||
Net income attributable to controlling interest | 3.4 | 12.1 | 71.9 | % | ||||||
Diluted EPS | 0.15 | 0.53 | 71.7 | % | ||||||
Adjusted (Non-GAAP) | ||||||||||
Adjusted income from operations | 12.0 | 28.5 | (57.9) | % | ||||||
Adjusted operating margin | 3.9 | % | 8.2 | % | (430) | bps | ||||
Adjusted effective tax rate | 26.0 | % | 25.2 | % | 80 | bps | ||||
Adjusted net income attributable to controlling interest | 7.8 | 20.5 | (62.0) | % | ||||||
Adjusted EPS | 0.34 | 0.90 | (62.2) | % | ||||||
Adjusted EBITDA | 18.9 | 35.2 | (46.3) | % | ||||||
Adjusted EBITDA margin | 6.1 | % | 10.1 | % | (400) | bps | ||||
All comparisons are made to the prior year first quarter:
Segments Results
Our two reportable segments are comprised of sites based upon the nature of the products or services produced, the type of customer for the products, the similarity of economic characteristics, the manner in which management reviews results and the nature of the production process, among other considerations. Based on a review of these factors, our Australia and LatAm sites, which were previously reported in the Infrastructure Solutions segment have moved to the Materials Solutions segment and Astec Digital, which was previously included in the Corporate and Other category has moved to the Infrastructure Solutions segment, each beginning January 1, 2024. Prior periods have been revised to reflect the changes for the segment composition for comparability.
Infrastructure Solutions - Road building equipment, asphalt and concrete plants, thermal storage solutions and related aftermarket parts.
Materials Solutions - Processing equipment to crush, screen and convey aggregates and related aftermarket parts.
Balance Sheet, Cash Flow and Liquidity
First Quarter Capital Allocation
Investor Conference Call and Webcast
Astec will conduct a conference call and live webcast today, May 1, 2024, at 8:30 A.M. Eastern Time, to review its first quarter financial results as well as current business conditions.
To access the call, dial (888) 440-4118 on Wednesday, May 1, 2024 at least 10 minutes prior to the scheduled time for the call. International callers should dial (646) 960-0833.
You may also access a live webcast of the call at: https://events.q4inc.com/attendee/470717703
You will need to give your name and company affiliation and reference Astec. An archived webcast will be available for ninety days at www.astecindustries.com.
A replay of the call can be accessed until May 15, 2024 by dialing (800) 770-2030, or (609) 800-9909 for international callers, Conference ID# 8741406. 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.
About Astec
Astec, (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building, aggregate processing and concrete production. Astec's manufacturing operations are divided into two primary business segments: Infrastructure Solutions that includes road building, asphalt and concrete plants, thermal and storage solutions; and Materials Solutions that include our aggregate processing equipment. Astec also operates a line of controls and automation products designed to deliver enhanced productivity through improved equipment performance.
Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995
This News Release contains forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statements in this News Release that are not historical are hereby identified as "forward-looking statements" and may be indicated by words or phrases such as "anticipates," "supports," "plans," "projects," "expects," "believes," "should," "would," "could," "forecast," "management is of the opinion," use of the future tense and similar words or phrases. These forward-looking statements are based largely on management's expectations, which are subject to a number of known and unknown risks, uncertainties and other factors discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission, which may cause actual results, financial or otherwise, to be materially different from those anticipated, expressed or implied by the forward-looking statements. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with additional information regarding the Company's results, the Company refers to various U.S. GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures which management believes provides useful information to investors. These non-GAAP financial measures have no standardized meaning prescribed by U.S. GAAP and therefore may not be comparable to the calculation of similar measures for other companies. Management of the Company does not intend these items to be considered in isolation or as a substitute for the related GAAP measures. Nonetheless, this non-GAAP information can be useful in understanding the Company's operating results and the performance of its core business. Management of the Company uses both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate the Company's financial performance against such budgets and targets. A reconciliation of these non-GAAP measures to the most directly comparable GAAP measure is included in this News Release.
For Additional Information Contact: Steve Anderson Senior Vice President of Administration and Investor RelationsPhone: (423) 899-5898 E-mail: sanderson@astecindustries.com
Certain reclassifications have been made to the prior period financial information included in this News Release to conform to the presentation used in the financial statements for the three months ended March 31, 2024.
Astec Industries Inc. | ||||||||
Condensed Consolidated Statements of Operations | ||||||||
(In millions, except shares in thousands and per share amounts; unaudited) | ||||||||
Three Months Ended March 31, | ||||||||
2024 | 2023 | |||||||
Net sales | $ | 309.2 | $ | 347.9 | ||||
Cost of sales | 232.3 | 258.7 | ||||||
Gross profit | 76.9 | 89.2 | ||||||
Operating expenses: | ||||||||
Selling, general and administrative expenses | 71.4 | 67.9 | ||||||
Restructuring and other asset (gains) charges, net | (0.8 | ) | 3.7 | |||||
Total operating expenses | 70.6 | 71.6 | ||||||
Income from operations | 6.3 | 17.6 | ||||||
Other expenses, net: | ||||||||
Interest expense | (2.7 | ) | (2.0 | ) | ||||
Other income, net | 1.1 | 0.9 | ||||||
Income before income taxes | 4.7 | 16.5 | ||||||
Income tax provision | 1.4 | 4.4 | ||||||
Net income | 3.3 | 12.1 | ||||||
Net loss attributable to noncontrolling interest | 0.1 | — | ||||||
Net income attributable to controlling interest | $ | 3.4 | $ | 12.1 | ||||
Earnings per common share | ||||||||
Basic | $ | 0.15 | $ | 0.53 | ||||
Diluted | 0.15 | 0.53 | ||||||
Weighted average shares outstanding | ||||||||
Basic | 22,762 | 22,656 | ||||||
Diluted | 22,835 | 22,743 |
Astec Industries Inc. | |||||||||||||||||||
Segment Net Sales and Operating Adjusted EBITDA | |||||||||||||||||||
(In millions, except percentage data; unaudited) | |||||||||||||||||||
Segment net sales are reported net of intersegment sales. | |||||||||||||||||||
Three Months Ended March 31, | |||||||||||||||||||
Infrastructure Solutions | Materials Solutions | Corporate and Other | Total | ||||||||||||||||
2024 Net sales | $ | 202.2 | $ | 107.0 | $ | — | $ | 309.2 | |||||||||||
2023 Net sales | 215.5 | 132.2 | 0.2 | 347.9 | |||||||||||||||
Change $ | (13.3 | ) | (25.2 | ) | (0.2 | ) | (38.7 | ) | |||||||||||
Change % | (6.2 | ) | % | (19.1 | ) | % | (100.0 | ) | % | (11.1 | ) | % | |||||||
2024 Segment Operating Adjusted EBITDA | 25.6 | 5.3 | (12.0 | ) | 18.9 | ||||||||||||||
2023 Segment Operating Adjusted EBITDA | 28.5 | 14.6 | (7.9 | ) | 35.2 | ||||||||||||||
Change $ | (2.9 | ) | (9.3 | ) | (4.1 | ) | (16.3 | ) | |||||||||||
Change % | (10.2 | ) | % | (63.7 | ) | % | (51.9 | ) | % | (46.0 | ) | % | |||||||
2024 Segment Operating Adjusted EBITDA Margin | 12.7 | % | 5.0 | % | |||||||||||||||
2023 Segment Operating Adjusted EBITDA Margin | 13.2 | % | 11.0 | % | |||||||||||||||
Change bps | (50 | ) | bps | (600 | ) | bps | |||||||||||||
We present certain non-GAAP information that can be useful in understanding our operating results and the performance of our core business. We use both GAAP and non-GAAP financial measures to establish internal budgets and targets and to evaluate financial performance against such budgets and targets. We exclude the costs and related tax effects, which are based on the statutory tax rate applicable to each respective item, of the following items as we do not believe they are indicative of our core business operations:
A reconciliation of total Segment Operating Adjusted EBITDA to the Company's "Net income attributable to controlling interest" is as follows (in millions; unaudited):
Three Months Ended March 31, | ||||||||||||
2024 | 2023 | Change $ | ||||||||||
Segment Operating Adjusted EBITDA | $ | 18.9 | $ | 35.2 | $ | (16.3 | ) | |||||
Adjustments: | ||||||||||||
Transformation program | (6.3 | ) | (7.2 | ) | 0.9 | |||||||
Restructuring and other related charges | (0.1 | ) | (7.1 | ) | 7.0 | |||||||
Gain on sale of property and equipment, net | 0.9 | 3.4 | (2.5 | ) | ||||||||
Interest expense, net | (2.1 | ) | (1.5 | ) | (0.6 | ) | ||||||
Depreciation and amortization | (6.5 | ) | (6.3 | ) | (0.2 | ) | ||||||
Income tax provision | (1.4 | ) | (4.4 | ) | 3.0 | |||||||
Net income attributable to controlling interest | $ | 3.4 | $ | 12.1 | $ | (8.7 | ) |
Astec Industries Inc. | |||||
Condensed Consolidated Balance Sheets | |||||
(In millions; unaudited) | |||||
March 31, 2024 | December 31, 2023 | ||||
Assets | |||||
Current assets: | |||||
Cash, cash equivalents and restricted cash | $ | 58.1 | $ | 63.2 | |
Investments | 5.7 | 5.7 | |||
Trade receivables, contract assets and other receivables, net | 192.0 | 152.7 | |||
Inventories, net | 484.0 | 455.6 | |||
Other current assets, net | 39.0 | 42.3 | |||
Total current assets | 778.8 | 719.5 | |||
Property, plant and equipment, net | 185.0 | 187.6 | |||
Other long-term assets | 159.2 | 152.2 | |||
Total assets | $ | 1,123.0 | $ | 1,059.3 | |
Liabilities | |||||
Current liabilities: | |||||
Accounts payable | $ | 117.8 | $ | 116.9 | |
Customer deposits | 80.0 | 70.2 | |||
Other current liabilities | 112.6 | 111.9 | |||
Total current liabilities | 310.4 | 299.0 | |||
Long-term debt | 125.0 | 72.0 | |||
Other long-term liabilities | 37.1 | 34.6 | |||
Total equity | 650.5 | 653.7 | |||
Total liabilities and equity | $ | 1,123.0 | $ | 1,059.3 |
Astec Industries Inc. | |||||||
Condensed Consolidated Statements of Cash Flows | |||||||
(In millions; unaudited) | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 3.3 | $ | 12.1 | |||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||
Depreciation and amortization | 6.5 | 6.3 | |||||
Provision for credit losses | 0.1 | 0.2 | |||||
Provision for warranties | 4.2 | 3.9 | |||||
Deferred compensation expense | 0.1 | — | |||||
Share-based compensation | 1.2 | 0.8 | |||||
Deferred tax benefit | (2.0 | ) | (2.6 | ) | |||
Gain on disposition of property and equipment, net | (0.9 | ) | (3.4 | ) | |||
Amortization of debt issuance costs | 0.1 | 0.1 | |||||
Distributions to deferred compensation programs' participants | — | (0.1 | ) | ||||
Change in operating assets and liabilities: | |||||||
Purchase of trading securities, net | (2.2 | ) | (0.8 | ) | |||
Receivables and other contract assets | (39.1 | ) | (4.5 | ) | |||
Inventories | (30.6 | ) | (27.2 | ) | |||
Prepaid expenses | 0.6 | 2.5 | |||||
Other assets | (4.0 | ) | (5.4 | ) | |||
Accounts payable | 2.5 | 3.5 | |||||
Accrued loss reserves | (0.3 | ) | 0.4 | ||||
Accrued employee related liabilities | (7.8 | ) | (0.8 | ) | |||
Other accrued liabilities | 12.2 | (5.9 | ) | ||||
Accrued product warranty | (4.5 | ) | (3.4 | ) | |||
Customer deposits | 10.1 | (1.9 | ) | ||||
Income taxes payable/prepaid | 3.5 | 7.0 | |||||
Net cash used in operating activities | (47.0 | ) | (19.2 | ) | |||
Cash flows from investing activities: | |||||||
Expenditures for property and equipment | (5.8 | ) | (8.0 | ) | |||
Proceeds from sale of property and equipment | 0.4 | 20.0 | |||||
Purchase of investments | (0.5 | ) | (0.2 | ) | |||
Net cash (used in) provided by investing activities | (5.9 | ) | 11.8 |
Astec Industries Inc. | |||||||
Condensed Consolidated Statements of Cash Flows (Continued) | |||||||
(In millions; unaudited) | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Cash flows from financing activities: | |||||||
Payment of dividends | (2.9 | ) | (2.9 | ) | |||
Proceeds from borrowings on credit facilities and bank loans | 68.4 | 32.1 | |||||
Repayments of borrowings on credit facilities and bank loans | (16.7 | ) | (44.0 | ) | |||
Withholding tax paid upon vesting of share-based compensation awards | (0.4 | ) | (1.4 | ) | |||
Net cash provided by (used in) financing activities | 48.4 | (16.2 | ) | ||||
Effect of exchange rates on cash | (0.6 | ) | 0.1 | ||||
Decrease in cash, cash equivalents and restricted cash | (5.1 | ) | (23.5 | ) | |||
Cash, cash equivalents and restricted cash, beginning of period | 63.2 | 66.0 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 58.1 | $ | 42.5 |
Astec Industries Inc. | |||||||
GAAP vs Non-GAAP Adjusted EPS Reconciliations | |||||||
(In millions, except per share amounts; unaudited) | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Net income attributable to controlling interest | $ | 3.4 | $ | 12.1 | |||
Adjustments: | |||||||
Transformation program | 6.5 | 7.2 | |||||
Restructuring and other related charges | 0.1 | 7.1 | |||||
Gain on sale of property and equipment, net | (0.9 | ) | (3.4 | ) | |||
Income tax impact of adjustments | (1.3 | ) | (2.5 | ) | |||
Adjusted net income attributable to controlling interest | $ | 7.8 | $ | 20.5 | |||
Diluted EPS | $ | 0.15 | $ | 0.53 | |||
Adjustments: | |||||||
Transformation program(a) | 0.29 | 0.32 | |||||
Restructuring and other related charges | — | 0.31 | |||||
Gain on sale of property and equipment, net | (0.04 | ) | (0.15 | ) | |||
Income tax impact of adjustments | (0.06 | ) | (0.11 | ) | |||
Adjusted EPS | $ | 0.34 | $ | 0.90 | |||
(a) Calculation includes the impact of a rounding adjustment |
Astec Industries Inc. | |||||||
EBITDA and Adjusted EBITDA Reconciliations | |||||||
(In millions, except percentage data; unaudited) | |||||||
Three Months Ended March 31, | |||||||
2024 | 2023 | ||||||
Net sales | $ | 309.2 | $ | 347.9 | |||
Net income attributable to controlling interest | $ | 3.4 | $ | 12.1 | |||
Interest expense, net | 2.1 | 1.5 | |||||
Depreciation and amortization | 6.5 | 6.3 | |||||
Income tax provision | 1.4 | 4.4 | |||||
EBITDA | 13.4 | 24.3 | |||||
EBITDA margin | 4.3 | % | 7.0 | % | |||
Adjustments: | |||||||
Transformation program | 6.3 | 7.2 | |||||
Restructuring and other related charges | 0.1 | 7.1 | |||||
Gain on sale of property and equipment, net | (0.9 | ) | (3.4 | ) | |||
Adjusted EBITDA | $ | 18.9 | $ | 35.2 | |||
Adjusted EBITDA margin | 6.1 | % | 10.1 | % |
1 Year Astec Industries Chart |
1 Month Astec Industries Chart |
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