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 MiningGroup 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 MiningGroup EnergyGroup 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 MiningGroup EnergyGroup 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 %    

For Additional Information Contact:Benjamin G. BrockChief Executive OfficerPhone: (423) 867-4210Fax: (423) 867-4127E-mail: bbrock@astecindustries.comorDavid C. SilviousVice President and Chief Financial OfficerPhone: (423) 899-5898Fax: (423) 899-4456E-mail: dsilvious@astecindustries.comorStephen C. AndersonVice President, Director of Investor Relations & Corporate SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail: sanderson@astecindustries.com

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