Astec Industries Reports First Quarter 2013 Results

             Astec Industries Reports First Quarter 2013 Results

PR Newswire

CHATTANOOGA, Tenn., April 23, 2013

CHATTANOOGA, Tenn., April 23, 2013 /PRNewswire/ --Astec Industries, Inc.
(Nasdaq: ASTE) today reported results for their first quarter ended March 31,
2013.

Net sales for the first quarter of 2013 were $247.8 million compared to $252.0
million for the first quarter of 2012, a 2% decrease. Earnings from
continuing operations for the first quarter of 2013 were $13.3 million or
$0.57 per diluted share compared to $12.0 for the first quarter of 2012 or
$0.52 per diluted share, an increase of 10% per diluted share.

Domestic sales increased 4% to $161.9 million for the first quarter of 2013
from $155.1 million for the first quarter of 2012. International sales were
$85.9 million for the first quarter of 2013 compared to $96.9 million for the
first quarter of 2012, a decrease of 11%. 

The Company's domestic backlog increased 5%, from $159.7 million at March 31,
2012 to $167.3 million at March 31, 2013. The international backlog at March
31, 2013 was $109.2 million, a 6% decrease from the March 31, 2012
international backlog of $116.5 million. The March 31, 2012 backlog has been
restated for the sale of American Augers late in 2012.

Consolidated financial information for the first quarter ended March 31, 2013
and additional information related to segment revenues and profits are
attached as addenda to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive
Officer, stated, "Although our revenues and pre-tax earnings were relatively
flat compared to the first quarter of 2012, we were able to improve our gross
margin by 30 basis points over the first quarter of 2012 and 250 basis points
from the fourth quarter of 2012. Since the federal research and development
tax credit for 2012 was not approved by Congress until early 2013, our first
quarter results also include a substantial reduction in our effective tax
rate."

Dr. Brock continued, "We continue to see challenging domestic market
conditions due to shortfalls in tax revenues in most states. International
business is also hampered by economic and political uncertainty in many of the
markets we serve. In spite of the lack of strong Federal highway funding and
general uncertainty in the world economy, we are pleased that we have
maintained our profitability and market share. Our backlog remains strong at
$276.5 million."

Investor Conference Call and Web Simulcast
Astec will conduct a conference call on April 23, 2013, 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 7, 2013 by dialing (877) 660-6853, or (201) 612-7415 for international
callers, Account #286, Conference ID# 412258. 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 building
and restoring the world's infrastructure. Astec's manufacturing operations
are divided into four primary business segments: aggregate processing and
mining equipment; asphalt production equipment; mobile asphalt paving
equipment; and oil, gas and water drilling equipment (Underground Group).
Additionally, the Other Group contains one subsidiary that manufactures
equipment used for wood processing and recycling and one that is a
company-owned dealership located in Australia.

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 its backlog and the effects
of general economic and political uncertainty on our business. 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, rising oil and liquid asphalt prices, rising steel
prices, the affect of any future federal stimulus package, 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, 2012.



Astec Industries, Inc.
Consolidated Balance Sheets
(in thousands)
(unaudited)
                                                     Mar 31       Mar 31
                                                     2013         2012
Assets
Current assets
Cash and cash equivalents                            $  73,175   $  41,642
Receivables, net                                     104,599      113,609
Inventories                                          322,007      313,407
Prepaid expenses and other                           26,733       21,976
Total current assets                                 526,514      490,634
Property and equipment, net                          186,192      191,489
Other assets                                         40,890       43,607
Total assets                                         $ 753,596    $ 725,730
Liabilities and equity
Current liabilities
Accounts payable - trade                             $  50,781   $  56,137
Other current liabilities                            110,134      92,593
Total current liabilities                            160,915      148,730
Non-current liabilities                              31,999       33,901
Total equity                                         560,682      543,099
Total liabilities and equity                         $ 753,596    $ 725,730
Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
                                                     Three Months Ended
                                                     Mar 31
                                                     2013         2012
Net sales                                            $ 247,833    $ 251,967
Cost of sales                                        189,266      193,371
Gross profit                                         58,567       58,596
Selling, general, administrative & engineering       40,367       40,143
expenses
Income from operations                               18,200       18,453
Interest expense                                     70           47
Other income, net of expenses                        752          849
Income from continuing operations before income      18,882       19,255
taxes
Income taxes on continuing operations                5,631        7,231
Net income from continuing operations                13,251       12,024
Income from discontinued operations, (net of tax of  -            234
$73)
Net income                                           13,251       12,258
Net income attributable to non-controlling interest  80           13
Net income attributable to controlling interest    $  13,171   $  12,245
Earnings per Common Share
Net income attributable to controlling interest from
continuing operations
 Basic                                      $    0.58 $    0.53
 Diluted                                    $    0.57 $    0.52
Income from discontinued operations, net of tax
 Basic                                      $     - $    0.01
 Diluted                                    $     - $    0.01
Net income attributable to controlling interest
 Basic                                      $    0.58 $    0.54
 Diluted                                    $    0.57 $    0.53
Weighted average common shares outstanding
 Basic                                      22,723       22,643
 Diluted                                    23,080       23,054



Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended March 31, 2013 and 2012
(in thousands)
(unaudited)
                      Aggregate  Mobile
           Asphalt    and Mining Asphalt    Underground            
           Group                 Paving     Group       All Others Total
                      Group
                                 Group
2013       71,549     90,762     47,290     14,706      23,526     247,833
Revenues
2012       68,671     91,304     41,993     22,059      27,940     251,967
Revenues
Change $   2,878      (542)      5,297      (7,353)     (4,414)    (4,134)
Change %   4.2%       (0.6%)     12.6%      (33.3%)     (15.8%)    (1.6%)
2013 Gross 20,154     23,040     10,559     275         4,539      58,567
Profit
2013 Gross 28.2%      25.4%      22.3%      1.9%        19.3%      23.6%
Profit %
2012 Gross 16,396     23,737     10,604     3,084       4,775      58,596
Profit
2012 Gross 23.9%      26.0%      25.3%      14.0%       17.1%      23.3%
Profit %
Change     3,758      (697)      (45)       (2,809)     (236)      (29)
2013
Profit     11,141     9,057      4,221      (2,381)     (8,172)    13,866
(Loss)
2012
Profit     7,391      9,571      3,921      (173)       (9,213)    11,497
(Loss)
Change $   3,750      (514)      300        (2,208)     1,041      2,369
Change %   50.7%      (5.4%)     7.7%       (1276.3%)   11.3%      20.6%
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
                                 2013       2012        Change $
Total profit for all segments    13,866     11,497      2,369
Recapture (elimination) of       (615)      527         (1,142)
intersegment profit
Net income from continuing       13,251     12,024      1,227
operations
Income from discontinued         -          234         (234)
operations, (net of tax of $73)
Net income attributable to       (80)       (13)        (67)
non-controlling interest
Net income
attributable to                  13,171     12,245      926
controlling
interest
Astec Industries, Inc.
Backlog by Segment
March 31, 2013 and 2012
(in thousands)
(unaudited)
                      Aggregate  Mobile
           Asphalt    and Mining Asphalt    Underground
           Group                 Paving     Group       All Others Total
                      Group
                                 Group
2013       126,895    93,867     10,056     30,937      14,770     276,525
Backlog
2012       123,327    102,686    10,799     26,380      12,980     276,172
Backlog
Change $   3,568      (8,819)    (743)      4,557       1,790      353
Change %   2.9%       (8.6%)     (6.9%)     17.3%       13.8%      0.1%
Astec Industries, Inc.
Supplemental Data Related to the Discontinued Operations of American Augers
(in thousands)
(unaudited)
                      2012                  2011
           Quarter    Revenues   Earnings,  Revenues    Earnings,
           Ended                 net of tax             net of tax
           March 31   14,670     234        5,800       (1,251)
           June 30    15,600     848        16,704      918
           September  8,651      318        14,717      915
           30
           December   14,698     2,001      9,867       (357)
           31
           Total      53,619     3,401      47,088      225





SOURCE Astec Industries, Inc.

Website: http://www.astecindustries.com
Contact: J. Don Brock, Chairman of the Board & C.E.O., Phone: (423) 867-4210,
Fax: (423) 867-4127, E-mail: dbrock@astecindustries.com; W. Norman Smith,
President and COO, Phone: (423) 867-4210, Fax: (423) 867-4127, E-mail:
nsmith@astecindustries.com; David C. Silvious, Vice President and Chief
Financial Officer, Phone: (423) 899-5898, Fax: (423) 899-4456, E-mail:
dsilvious@astecindustries.com; Stephen C. Anderson, Vice President, Director
of Investor Relations & Corporate Secretary, Phone: (423) 899-5898, Fax: (423)
899-4456, E-mail: sanderson@astecindustries.com
 
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