CHATTANOOGA, Tenn., Feb. 21, 2017 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their fourth quarter and year ended December 31, 2016.
Net sales for the fourth quarter of 2016 were $326.6 million compared to $215.0 million for the fourth quarter of 2015, a 52% increase. Earnings for the fourth quarter of 2016 were $12.4 million or $0.53 per diluted share compared to $3.6 million or $0.16 per diluted share in the fourth quarter of 2015, an increase in earnings per share of 231%.
Domestic sales increased 65% to $265.0 million for the fourth quarter of 2016 from $160.3 million for the fourth quarter of 2015. International sales increased 13% to $61.6 million for the fourth quarter of 2016 from $54.7 million for the fourth quarter of 2015.
Net sales for 2016 were $1.147 billion compared to $983.2 million for 2015, a 17% increase. Earnings for 2016 were $55.2 million or $2.38 per diluted share compared to $32.8 million or $1.42 per diluted share for 2015, a 68% increase in earnings per share.
Domestic sales increased 30% to $941.3 million for 2016 from $722.3 million for 2015. International sales were $206.2 million for 2016 compared to $260.9 million for 2015, a 21% decrease.
The Company’s domestic backlog increased 13% to $294.8 million at December 31, 2016 from $261.8 million at December 31, 2015. The international backlog at December 31, 2016 was $62.6 million compared to $54.1 million at December 31, 2015, an increase of 16%. Total backlog increased 13% to a year-end record of $357.4 million at December 31, 2016 from $315.9 million at December 31, 2015.
Consolidated financial information for the quarter and year ended December 31, 2016 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement of quarterly and annual results, Benjamin G. Brock, Chief Executive Officer, stated, “We were pleased with our results for the fourth quarter and for the year. We were able to grow revenues and net income both quarter over quarter and year over year. At the same time, we were able to grow our backlog at December 31, 2016 to $357.4 million, a December record.”
Mr. Brock continued, “The domestic market was strong for our Infrastructure Group’s products targeted at the road construction industry and the group also recognized better than expected wood pellet plant revenues. Our Aggregate and Mining group started to see an improvement in the domestic market for products targeted at traditional rock quarries while the mining market continued to be slow. Our Energy Group products targeted at specialized industrial markets saw an increase during the quarter, while we experienced a slight increase in quote and order activity in the oil and gas markets.”
Mr. Brock concluded, “Given these positive developments, and our order activity in January, we are optimistic about 2017. Our backlog at January 31, 2017 was $386.3 million, a record high for January. Some of these orders are for new equipment designs that have the potential to carry lower margin and/or higher than normal warranty expense in the first half of this year. However, the introduction of new products is essential for our future. While the increase in order activity is a good sign for the year ahead, we still face significant challenges on U.S. exports given the continued strength of the U.S. dollar.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 21, 2017, at 10:00 A.M. Eastern Time to review its December 31, 2016 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 7, 2017 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Replay ID# 10240. 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 asphalt road building; aggregate processing; oil, gas and water well drilling; and wood processing. Astec’s manufacturing operations are divided into three primary business segments: road building and related equipment (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction, production and combustion of fuels, biomass 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, including statements about the effects on the Company from low oil prices, the global mining slow down, the strong U.S. Dollar, and the impact of a long-term highway bill in the United States. 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 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, 2015.
| Astec Industries, Inc. | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands) | ||||||||
| (unaudited) | ||||||||
| Dec 31 | Dec 31 | |||||||
| 2016 | 2015 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 82,371 | $ | 25,062 | ||||
| Investments | 1,024 | 1,539 | ||||||
| Receivables, net | 110,673 | 101,997 | ||||||
| Inventories | 360,404 | 384,776 | ||||||
| Prepaid expenses and other | 22,361 | 28,423 | ||||||
| Total current assets | 576,833 | 541,797 | ||||||
| Property and equipment, net | 180,538 | 170,206 | ||||||
| Other assets | 86,230 | 65,350 | ||||||
| Total assets | $ | 843,601 | $ | 777,353 | ||||
| Liabilities and equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable - trade | $ | 57,297 | $ | 48,385 | ||||
| Other current liabilities | 111,564 | 93,627 | ||||||
| Total current liabilities | 168,861 | 142,012 | ||||||
| Non-current liabilities | 25,899 | 25,483 | ||||||
| Total equity | 648,841 | 609,858 | ||||||
| Total liabilities and equity | $ | 843,601 | $ | 777,353 | ||||
| Astec Industries, Inc. | ||||||||
| Consolidated Statements of Income | ||||||||
| (in thousands, except per share data) | ||||||||
| (unaudited) | ||||||||
| Three Months Ended | Twelve Months Ended | |||||||
| Dec 31 | Dec 31 | |||||||
| 2016 | 2015 | 2016 | 2015 | |||||
| Net sales | $ | 326,563 | $ | 215,017 | $ | 1,147,431 | $ | 983,157 |
| Cost of sales | 262,091 | 169,590 | 882,162 | 764,314 | ||||
| Gross profit | 64,472 | 45,427 | 265,269 | 218,843 | ||||
| Selling, general, administrative & engineering expenses | 45,398 | 40,722 | 178,115 | 168,856 | ||||
| Income from operations | 19,074 | 4,705 | 87,154 | 49,987 | ||||
| Interest expense | 338 | 389 | 1,395 | 1,611 | ||||
| Other | 63 | 1,216 | 1,507 | 4,428 | ||||
| Income before income taxes | 18,799 | 5,532 | 87,266 | 52,804 | ||||
| Income taxes | 6,413 | 1,937 | 32,107 | 20,007 | ||||
| Net income attributable to controlling interest | $ | 12,386 | $ | 3,595 | $ | 55,159 | $ | 32,797 |
| Earnings per Common Share | ||||||||
| Net income attributable to controlling interest | ||||||||
| Basic | $ | 0.54 | $ | 0.16 | $ | 2.40 | $ | 1.43 |
| Diluted | $ | 0.53 | $ | 0.16 | $ | 2.38 | $ | 1.42 |
| Weighted average common shares outstanding | ||||||||
| Basic | 23,002 | 22,947 | 22,992 | 22,934 | ||||
| Diluted | 23,154 | 23,124 | 23,142 | 23,120 | ||||
| Astec Industries, Inc. | ||||||||||||||||
| Segment Revenues and Profits | ||||||||||||||||
| For the three months ended December 31, 2016 and 2015 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Corporate | Total | ||||||||||||
| 2016 Revenues | $ | 194,090 | $ | 82,367 | $ | 50,106 | $ | - | $ | 326,563 | ||||||
| 2015 Revenues | 91,969 | 85,023 | 38,025 | - | 215,017 | |||||||||||
| Change $ | 102,121 | (2,656 | ) | 12,081 | - | 111,546 | ||||||||||
| Change % | 111.0 | % | (3.1 | %) | 31.8 | % | - | 51.9 | % | |||||||
| 2016 Gross Profit | 34,498 | 19,128 | 10,752 | 94 | 64,472 | |||||||||||
| 2016 Gross Profit % | 17.8 | % | 23.2 | % | 21.5 | % | - | 19.7 | % | |||||||
| 2015 Gross Profit | 18,672 | 19,319 | 6,831 | 605 | 45,427 | |||||||||||
| 2015 Gross Profit % | 20.3 | % | 22.7 | % | 18.0 | % | - | 21.1 | % | |||||||
| Change | 15,826 | (191 | ) | 3,921 | (511 | ) | 19,045 | |||||||||
| 2016 Profit (Loss) | 20,088 | 6,742 | 908 | (15,247 | ) | 12,491 | ||||||||||
| 2015 Profit (Loss) | 4,418 | 5,249 | 804 | (7,470 | ) | 3,001 | ||||||||||
| Change $ | 15,670 | 1,493 | 104 | (7,777 | ) | 9,490 | ||||||||||
| Change % | 354.7 | % | 28.4 | % | 12.9 | % | (104.1 | %) | 316.2 | % | ||||||
| Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment revenues. A reconciliation of total segment profits to the Company's net income attributable to controlling interest is as follows (in thousands): | ||||||||||||||||
| Three months ended December 31 | ||||||||||||||||
| 2016 | 2015 | Change $ | ||||||||||||||
| Total profit for all segments | $ | 12,491 | $ | 3,001 | $ | 9,490 | ||||||||||
| Recapture (elimination) of intersegment profit | (157 | ) | 432 | (589 | ) | |||||||||||
| Net loss attributable to non-controlling interest | 52 | 162 | (110 | ) | ||||||||||||
| Net income attributable to controlling interest | $ | 12,386 | $ | 3,595 | $ | 8,791 | ||||||||||
| Astec Industries, Inc. | ||||||||||||||||
| Segment Revenues and Profits | ||||||||||||||||
| For the twelve months ended December 31, 2016 and 2015 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Corporate | Total | ||||||||||||
| 2016 Revenues | $ | 608,908 | $ | 359,760 | $ | 178,763 | $ | - | $ | 1,147,431 | ||||||
| 2015 Revenues | 428,737 | 370,813 | 183,607 | - | 983,157 | |||||||||||
| Change $ | 180,171 | (11,053 | ) | (4,844 | ) | - | 164,274 | |||||||||
| Change % | 42.0 | % | (3.0 | %) | (2.6 | %) | - | 16.7 | % | |||||||
| 2016 Gross Profit | 135,848 | 91,352 | 37,820 | 249 | 265,269 | |||||||||||
| 2016 Gross Profit % | 22.3 | % | 25.4 | % | 21.2 | % | - | 23.1 | % | |||||||
| 2015 Gross Profit | 92,964 | 89,501 | 35,743 | 635 | 218,843 | |||||||||||
| 2015 Gross Profit % | 21.7 | % | 24.1 | % | 19.5 | % | - | 22.3 | % | |||||||
| Change | 42,884 | 1,851 | 2,077 | (386 | ) | 46,426 | ||||||||||
| 2016 Profit (Loss) | 71,482 | 34,877 | 4,145 | (55,992 | ) | 54,512 | ||||||||||
| 2015 Profit (Loss) | 33,890 | 30,690 | 3,609 | (36,623 | ) | 31,566 | ||||||||||
| Change $ | 37,592 | 4,187 | 536 | (19,369 | ) | 22,946 | ||||||||||
| Change % | 110.9 | % | 13.6 | % | 14.9 | % | (52.9 | %) | 72.7 | % | ||||||
| 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 | ||||||||||||||||
| 2016 | 2015 | Change $ | ||||||||||||||
| Total profit for all segments | $ | 54,512 | $ | 31,566 | $ | 22,946 | ||||||||||
| Recapture of intersegment profit | 476 | 400 | 76 | |||||||||||||
| Net loss attributable to non-controlling interest | 171 | 831 | (660 | ) | ||||||||||||
| Net income attributable to controlling interest | $ | 55,159 | $ | 32,797 | $ | 22,362 | ||||||||||
| Astec Industries, Inc. | ||||||||||||||||
| Backlog by Segment | ||||||||||||||||
| December 31, 2016 and 2015 | ||||||||||||||||
| (in thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Infrastructure Group | Aggregate and Mining Group | Energy Group | Total | |||||||||||||
| 2016 Backlog | $ | 232,224 | $ | 88,951 | $ | 36,192 | $ | 357,367 | ||||||||
| 2015 Backlog | 203,830 | 74,484 | 37,596 | 315,910 | ||||||||||||
| Change $ | 28,394 | 14,467 | (1,404 | ) | 41,457 | |||||||||||
| Change % | 13.9 | % | 19.4 | % | (3.7 | %) | 13.1 | % | ||||||||