CHATTANOOGA, Tenn., April 25, 2017 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their first quarter ended March 31, 2017. 

Net sales for the first quarter of 2017 were $318.4 million compared to $278.7 million for the first quarter of 2016, a 14% increase.  Earnings for the first quarter of 2017 were $15.1 million or $0.65 per diluted share compared to $17.7 million or $0.77 per diluted share in the first quarter of 2016, a decrease in earnings per share of 16%.

Domestic sales increased 8% to $253.5 million for the first quarter of 2017 from $234.2 million for the first quarter of 2016.  International sales increased 46% to $64.9 million for the first quarter of 2017 from $44.5 million for the first quarter of 2016.

The Company's backlog at March 31, 2017 was $361.8 million.  Domestic backlog decreased 25% to $290.4 million at March 31, 2017 from $387.9 million at March 31, 2016.  The international backlog at March 31, 2017 was $71.3 million compared to $50.8 million at March 31, 2016, an increase of 40%.  Total March 31, 2017 backlog decreased $76.9 million or 18% compared to March 31, 2016.  Excluding all pellet plant backlogs, the Company's March 31, 2017 backlog increased $35.2 million or 14% compared to March 31, 2016.  All prior year backlog amounts have been recast to include the backlog of Power Flame Incorporated which was acquired on August 1, 2016.

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

Commenting on the announcement of the quarterly results, Benjamin G. Brock, Chief Executive Officer, stated: "We are pleased with our results for the first quarter.  We were able to grow revenues and, as expected, our gross margins were lower than usual, mainly due to new products being manufactured in many of our facilities.  Our new products normally carry lower margins early on in their product life cycle.  Our ConExpo show expense of $4.3M also affected our net income but resulted in the best ConExpo I have ever attended.  While our year-over-year backlog is down including pellet plant orders, we were able to grow our March 31, 2017 backlog 14% excluding all pellet plant orders."

Mr. Brock continued, "The domestic market remained strong for our Infrastructure Group's products targeted at the road construction industry.  Our Aggregate and Mining Group continued to see improvement in the domestic market for products targeted at traditional rock quarries.  The market for our equipment continues to be slow on the mining side.  Our Energy Group product sales for the infrastructure industry were strong while specialized industrial markets remained steady during the quarter.  We continue to experience a slight increase in quote and order activity in the oil and gas markets."

Mr. Brock concluded, "We remain optimistic about 2017.  Our backlog at March 31, 2017 was historically very good at $361.8 million.  Still, 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 and we have been able to secure international orders in the face of significant headwinds from the strong U.S. Dollar, we still face challenges on U.S. exports given the continued strength of the U.S. dollar and in products targeted at the cautious mining industry."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on April 25, 2017, 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 Tuesday, May 9, 2017 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Replay ID# 10344.  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 introduction of new products, higher warranty costs, the ConExpo show, the global mining slow down and the strong U.S. Dollar.  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, 2016. 
     
Astec Industries, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
 
  Mar 31 Mar 31
    2017   2016
Assets    
Current assets    
Cash and cash equivalents $   55,401 $   62,445
Investments     1,408     1,654
Receivables, net     156,222     119,371
Inventories     372,570     389,504
Prepaid expenses and other     20,731     26,961
Total current assets     606,332     599,935
Property and equipment, net     182,223     171,205
Other assets     85,933     64,640
Total assets $   874,488 $   835,780
Liabilities and equity    
Current liabilities    
Accounts payable - trade $   73,807 $   56,188
Other current liabilities     110,828     126,453
Total current liabilities     184,635     182,641
Non-current liabilities     25,503     26,877
Total equity     664,350     626,262
Total liabilities and equity $   874,488 $   835,780
     
     
Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
 
  Three Months Ended
  Mar 31
    2017   2016
Net sales $   318,401 $   278,721
Cost of sales     242,630     206,765
Gross profit     75,771     71,956
Selling, general, administrative & engineering expenses     53,121     43,806
Income from operations     22,650     28,150
Interest expense     265     467
Other     552     609
Income before income taxes     22,937     28,292
Income taxes     7,817     10,549
Net income attributable to controlling interest  $   15,120 $   17,743
     
     
Earnings per Common Share    
Net income attributable to controlling interest    
Basic $   0.66 $   0.77
Diluted $   0.65 $   0.77
     
     
Weighted average common shares outstanding    
Basic     23,013     22,965
Diluted     23,176     23,135
     

 
Astec Industries, Inc.  
Segment Revenues and Profits  
For the three months ended March 31, 2017 and 2016  
(in thousands)  
(unaudited)  
  Infrastructure Group Aggregate and Mining Group Energy Group Corporate Group Total  
2017 Revenues   165,243       100,613       52,545       -      318,401    
2016 Revenues   153,114       92,488       33,119       -      278,721    
Change $   12,129       8,125       19,426       -      39,680    
Change % 7.9 %   8.8 %   58.7 %     -    14.2 %  
             
2017 Gross Profit   37,801       25,023       12,887       60     75,771    
2017 Gross Profit % 22.9 %   24.9 %   24.5 %     -    23.8 %  
2016 Gross Profit   39,837       25,148       7,082       (111 )   71,956    
2016 Gross Profit % 26.0 %   27.2 %   21.4 %     -    25.8 %  
Change   (2,036 )     (125 )     5,805       171     3,815    
             
2017 Profit (Loss)   18,180       8,428       2,729       (14,428 )   14,909    
2016 Profit (Loss)   21,863       9,538       (192 )     (14,226 )   16,983    
Change $   (3,683 )     (1,110 )     2,921       (202 )   (2,074 )  
Change % (16.8 %)   (11.6 %)   1521.4 %   (1.4 %) (12.2 %)  
             
             
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 March 31    
      2017     2016   Change $    
Total profit for all segments $   14,909   $   16,983   $   (2,074 )    
Recapture of intersegment profit     172       695       (523 )    
Net loss attributable to non-controlling interest     39       65       (26 )    
Net income attributable to controlling interest  $   15,120   $   17,743   $   (2,623 )    
             
             
             
Astec Industries, Inc.    
Backlog by Segment    
March 31, 2017 and 2016    
(in thousands)    
(Unaudited)    
  Infrastructure Group Aggregate and Mining Group Energy Group Total    
2017 Backlog   221,849       100,043       39,875       361,767      
2016 Backlog   326,039       79,128       33,523       438,690      
Change $   (104,190 )     20,915       6,352       (76,923 )    
Change % (32.0 %)   26.4 %   18.9 %   (17.5 %)    
             
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.comor Stephen C. AndersonVice President, Director of Investor Relations & Corporate SecretaryPhone: (423) 899-5898Fax: (423) 899-4456E-mail: sanderson@astecindustries.com

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