Astec Industries Reports Third Quarter 2013 Results

Astec Industries Reports Third Quarter 2013 Results

CHATTANOOGA, Tenn., Oct. 22, 2013 (GLOBE NEWSWIRE) -- Astec Industries, Inc.
(Nasdaq:ASTE) today reported results for their third quarter ended September
30, 2013. Net sales for the third quarter of 2013 were $213.2 million compared
to $218.4 million for the third quarter of 2012, a 2% decrease. Earnings from
continuing operations for the third quarter of 2013 were $6.5 million or $0.28
per diluted share compared to $6.6 million or $0.29 per diluted share in the
third quarter of 2012, a decrease of 1%.

Domestic sales decreased 1% to $132.4 million for the third quarter of 2013
compared to $134.0 million for the third quarter of 2012. International sales
decreased 4% to $80.8 million for the third quarter of 2013 compared to $84.4
million for the third quarter of 2012.

Net sales for the first nine months of 2013 were $709.1 million compared to
$708.6 million for the first nine months of 2012, a slight increase. Earnings
from continuing operations for the first nine months of 2013 were $30.8
million or $1.33 per diluted share compared to $28.5 million or $1.24 per
diluted share in the first nine months of 2012, an 8% increase.

Domestic sales increased 3% to $456.6 million for the first nine months of
2013 compared to $443.5 million for the first nine months of 2012.
International sales were $252.5 million for the first nine months of 2013
compared to $265.1 million for the first nine months of 2012, a 5% decrease.

The Company's domestic backlog increased 20%, from $110.6 million at September
30, 2012 to $132.9 million at September 30, 2013. The international backlog at
September 30, 2013 was $95.6 million compared to $120.1 million at September
30, 2012 for a decrease of 20%. Total backlog decreased 1% to $228.5 million
at September 30, 2013 from $230.7 million at September 30, 2012. 2012 backlog
amounts have been revised to reflect divestitures made late in 2012.

Prior period results have been revised to correct errors identified during the
third quarter of 2013. The effects of the errors are not material to such
prior periods, and therefore the Company has concluded that its financial
statements for such prior periods can still be relied upon. The net impact of
the correction is an increase to net income of $51,000 and $480,000 for the
third quarter and nine months ended September 30, 2012, respectively,
resulting in no change to earnings per diluted share for the third quarter of
2012 and an increase to earnings per diluted share of $.02 for the nine months
ended September 30, 2012. Balance sheet corrections consisted of increasing
retained earnings by $2.6 million and inventory by $3.8 million, each on a
cumulative basis at September 30, 2012, along with related changes in deferred
and current income tax balance sheet amounts. The increase in profit occurred
primarily in the Asphalt Group's gross margin while the related tax effects
occurred primarily in the Other Group.

Consolidated financial information for the quarter and nine months ended
September 30, 2013 and additional information related to segment revenues and
profits are attached as addenda to this press release.

Commenting on the announcement of quarterly results, Dr. J. Don Brock,
Chairman and Chief Executive Officer, stated, "Sales for the third quarter
were down slightly, primarily driven by a lack of equipment sales in the
Aggregate and Mining Group. This resulted in a decrease in overhead absorption
which affected our gross margin. We believe continued rainy weather during the
quarter in some parts of the country hampered many of our customers and a
continued lack of clarity on the future of highway funding has made many of
our customers hesitant to spend on major equipment purchases. International
business has slowed when compared to last year but we have seen a pickup in
orders early in the fourth quarter."

Dr. Brock continued, "We are busy installing our first pellet plant in
Georgia. We hope to open the plant and start producing pellets there before
the end of the year. We are also making progress on the construction of our
manufacturing facility in Brazil. We continue to look for appropriate
acquisitions to expand our product offering and market coverage. Although we
are cautious about the near-term economic outlook, we are building a
foundation for future growth in sales and profits."

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on October 22, 2013, at 10:00 A.M.
Eastern Time to review its September 30, 2013 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,
November 5, 2013 by dialing (877) 660-6853, or (201) 612-7415 for
international callers, Account #286, Conference ID# 100581. 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, the delay in
shipments caused by the weather, the lack of highway funding, and the opening
of plants in Georgia and Brazil. 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, 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)

                                      
                            Sept 30    Sept 30
                            2013       2012
Assets                                 
Current assets                         
Cash and cash equivalents    $46,342  $35,564
Investments                  16,342    1,743
Receivables, net             97,347    109,320
Inventories                  339,826   344,798
Prepaid expenses and other   21,701    23,278
Total current assets         521,558   514,703
Property and equipment, net  186,546   192,602
Other assets                 41,959    42,704
Total assets                 $750,063 $750,009
Liabilities and equity                 
Current liabilities                    
Accounts payable - trade     $48,492  $49,456
Other current liabilities    95,083    103,956
Total current liabilities    143,575   153,412
Non-current liabilities      32,903    33,422
Total equity                 573,585   563,175
Total liabilities and equity $750,063 $750,009



Astec Industries, Inc.
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
                                                       
                                  Three Months Ended    Nine Months Ended
                                  Sept 30               Sept 30
                                  2013       2012       2013       2012
Net sales                          $213,177 $218,391 $709,136 $708,633
Cost of sales                      167,390   171,094   549,341   548,993
Gross profit                       45,787    47,297    159,795   159,640
Selling, general, administrative & 36,635    38,411    114,797   117,010
engineering expenses
Income from operations             9,152     8,886     44,998    42,630
Interest expense                   269       152       417       240
Other                              1,087     788       1,731     2,181
Income from continuing operations  9,970     9,522     46,312    44,571
before income taxes
Income taxes on continuing         3,456     2,937     15,536    16,028
operations
Net income from continuing         6,514     6,585     30,776    28,543
operations
Income from discontinued
operations, (net of tax of $338    --       318       --       1,400
for the quarter and $817 for the
year)
Net income attributable to         $6,514   $6,903   $30,776  $29,943
controlling interest
                                                                
                                                                
                                                                
Earnings per Common Share                                        
Net income from continuing                                       
operations
Basic                              $0.29    $0.29    $1.35    $1.26
Diluted                            $0.28    $0.29    $1.33    $1.24
                                                                
                                                                
Income from discontinued                                         
operations, net of tax
Basic                              $--     $0.01    $--     $0.06
Diluted                            $--     $0.01    $--     $0.06
                                                                
                                                                
Net income attributable to                                       
controlling interest
Basic                              $0.29    $0.30    $1.35    $1.32
Diluted                            $0.28    $0.30    $1.33    $1.30
                                                                
                                                                
Weighted average common shares                                   
outstanding
Basic                              22,756    22,691    22,744    22,675
Diluted                            23,082    23,053    23,077    23,049



Astec Industries, Inc.
Segment Revenues and Profits
For the three months ended September 30, 2013 and 2012
(in thousands)
(unaudited)
            Asphalt  Aggregate   Mobile       Underground  All
           Group    and Mining  Asphalt      Group        Others    Total
                     Group       Paving Group
2013        47,058  79,792     35,419      27,266      23,642   213,177
Revenues
2012        46,797  91,860     36,618      20,529      22,587   218,391
Revenues
Change $    261     (12,068)   (1,199)     6,737       1,055    (5,214)
Change %    0.6%     (13.1%)     (3.3%)       32.8%        4.7%      (2.4%)
                                                               
2013 Gross  12,257  19,584     7,922       1,979       4,045    45,787
Profit
2013 Gross  26.0%    24.5%       22.4%        7.3%         17.1%     21.5%
Profit %
2012 Gross  9,645   22,957     7,575       2,701       4,419    47,297
Profit
2012 Gross  20.6%    25.0%       20.7%        13.2%        19.6%     21.7%
Profit %
Change      2,612   (3,373)    347         (722)       (374)    (1,510)
                                                               
2013 Profit 4,846   6,765      2,059       (813)       (5,652)  7,205
(Loss)
2012 Profit 2,324   8,697      1,631       (127)       (5,243)  7,282
(Loss)
Change $    2,522   (1,932)    428         (686)       (409)    (77)
Change %    108.5%   (22.2%)     26.2%        (540.2%)     (7.8%)    (1.1%)


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 September 30
                                              2013       2012       Change $
Total profit for all segments                  $7,205   $7,282   $(77)
Elimination of intersegment profit             (678)     (649)     (29)
Net income attributable to non-controlling     (13)      (48)      35
interest
Net income from continuing operations          6,514      6,585      (71)
Income from discontinued operations, (net of   --       318       (318)
tax of $338)
Net income attributable to controlling         $6,514   $6,903   $(389)
interest


Astec Industries, Inc.
Segment Revenues and Profits
For the nine months ended September 30, 2013 and 2012
(in thousands)
(unaudited)
            Asphalt   Aggregate   Mobile       Underground
           Group     and Mining  Asphalt      Group       All Others Total
                      Group       Paving Group
2013        181,761  270,438    128,459     59,066     69,412    709,136
Revenues
2012        174,898  278,024    123,770     61,817     70,124    708,633
Revenues
Change $    6,863    (7,586)    4,689       (2,751)    (712)     503
Change %    3.9%      (2.7%)      3.8%         (4.5%)      (1.0%)     0.1%
                                                                
2013 Gross  44,289   68,240     29,652      4,486      13,128    159,795
Profit
2013 Gross  24.4%     25.2%       23.1%        7.6%        18.9%      22.5%
Profit %
2012 Gross  38,502   72,512     28,331      7,838      12,457    159,640
Profit
2012 Gross  22.0%     26.1%       22.9%        12.7%       17.8%      22.5%
Profit %
Change      5,787    (4,272)    1,321       (3,352)    671       155
                                                                
2013 Profit 20,048   26,963     10,888      (3,963)    (21,578)  32,358
(Loss)
2012 Profit 14,308   29,836     9,634       (1,173)    (22,929)  29,676
(Loss)
Change $    5,740    (2,873)    1,254       (2,790)    1,351     2,682
Change %    40.1%     (9.6%)      13.0%        (237.9%)    5.9%       9.0%


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):

                                               Nine months ended September 30
                                               2013       2012       Change $
Total profit for all segments                   $32,358  $29,676  $2,682
Elimination of intersegment profit              (1,428)   (1,009)   (419)
Net income attributable to non-controlling      (154)     (124)     (30)
interest
Net income from continuing operations           30,776     28,543     2,233
Income from discontinued operations, (net of    --       1,400     (1,400)
tax of $817)
Net income attributable to controlling interest $30,776  $29,943  $833



Astec Industries, Inc.
Backlog by Segment
September 30, 2013 and 2012
(in thousands)
(Unaudited)
         Asphalt  Aggregate  Mobile Asphalt      Underground All
        Group    and Mining Paving Group        Group       Others   Total
                  Group
2013     120,459 69,583    3,439              17,192     17,864  228,537
Backlog
2012     102,944 82,648    2,828              20,793     21,505  230,718
Backlog
Change $ 17,515  (13,065)  611                (3,601)    (3,641) (2,181)
Change % 17.0%    (15.8%)    21.6%               (17.3%)     (16.9%)  (0.9%)

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