Astec Industries Reports First Quarter 2014 Results

Astec Industries Reports First Quarter 2014 Results  CHATTANOOGA, Tenn., April 22, 2014 (GLOBE NEWSWIRE) -- Astec Industries, Inc. (Nasdaq:ASTE) today reported results for their first quarter ended March 31, 2014.  Net sales for the first quarter of 2014 were $238.7 million compared to $247.8 million for the first quarter of 2013, a 4% decrease. Earnings for the first quarter of 2014 were $9.5 million or $0.41 per diluted share compared to $13.2 million for the first quarter of 2013 or $0.57 per diluted share, a decrease of 28% per diluted share.  Domestic sales increased 8% to $175.5 million for the first quarter of 2014 from $161.9 million for the first quarter of 2013. International sales were $63.2 million for the first quarter of 2014 compared to $85.9 million for the first quarter of 2013, a decrease of 26%.  The Company's backlog increased 8% from $276.5 million at March 31, 2013 to $299.6 million at March 31, 2014. The domestic backlog increased 18% from $167.3 million at March 31, 2013 to $196.9 million at March 31, 2014. The international backlog at March 31, 2014 was $102.7 million, a 6% decrease from the March 31, 2013 international backlog of $109.2 million.  Consolidated financial information for the first quarter ended March 31, 2014 and additional information related to segment revenues and profits are attached as addenda to this press release.  As previously discussed in the Company's annual report on Form 10-K for the year ended December 31, 2013, due to the recent reallocation of certain product lines between some of the Company's subsidiaries, the Company has been reevaluating its reportable segments. This process has now been completed and the composition of the Company's reportable segments has been changed. Recast historical segment information is included in the financial information attached as addenda to this press release.  Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, "We are pleased with our growth in domestic revenues compared to last year although we continue to experience headwinds in our international sales efforts driven by the strong dollar and weakness in certain markets like Canada and Australia. Although total sales decreased slightly we held our gross margin steady which is a testament to our focus on lean manufacturing and cost management. Our presence at ConExpo in early March added $4 million to our S,G,A&E expenses for the quarter, however, we were pleased by the strong attendance in our booth and the interactions we had with customers."  Mr. Brock continued, "With the April 1^st addition of Telestack headquartered in Omagh, Northern Ireland, we have demonstrated our commitment to further global expansion in our core products to better serve our target industries of Infrastructure, Aggregate and Mining, and Energy. Telestack's quality and customer service make it a natural fit for Astec. We expect them to be immediately accretive to earnings and to positively reinforce our backlog and outlook for the remainder of the year."  Investor Conference Call and Web Simulcast  Astec will conduct a conference call on April 22, 2014, 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 6, 2014 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13580080. 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 and production 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 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, 2013.   Astec Industries, Inc. Consolidated Balance Sheets (in thousands) (unaudited)                              Mar 31     Mar 31                             2014       2013 Assets                                  Current assets                          Cash and cash equivalents    $44,969  $73,175 Investments                  1,462     1,573 Receivables, net             109,080   104,599 Inventories                  361,209   326,068 Prepaid expenses and other   28,717    25,159 Total current assets         545,437   530,574 Property and equipment, net  187,895   186,192 Other assets                 41,372    40,890 Total assets                 $774,704 $757,656 Liabilities and equity                  Current liabilities                     Accounts payable - trade     $59,364  $50,781 Other current liabilities    93,596    111,451 Total current liabilities    152,960   162,232 Non-current liabilities      32,490    31,999 Total equity                 589,254   563,425 Total liabilities and equity $774,704 $757,656    Astec Industries, Inc. Consolidated Statements of Income (in thousands, except per share data) (unaudited)                                                         Three Months Ended                                                        Mar 31                                                        2014       2013 Net sales                                               $238,673 $247,833 Cost of sales                                           181,916   189,266 Gross profit                                            56,757    58,567 Selling, general, administrative & engineering expenses 43,424    40,367 Income from operations                                  13,333    18,200 Interest expense                                        73        70 Other                                                   812       672 Income before income taxes                              14,072    18,802 Income taxes                                            4,527     5,631 Net income attributable to controlling interest         $9,545   $13,171                                                                                                                                                                                                                                                                         Earnings per Common Share                                          Net income attributable to controlling interest                    Basic                                                   $0.42    $0.58 Diluted                                                 $0.41    $0.57                                                                                                                                     Weighted average common shares outstanding                         Basic                                                   22,786    22,723 Diluted                                                 23,102    23,080    Astec Industries, Inc. Segment Revenues and Profits For the three months ended March 31, 2014 and 2013 (in thousands) (unaudited)                  Infrastructure   Aggregate and  Energy                 Group            Mining         Group    Corporate  Total                                   Group 2014 Revenues    98,791          93,108        46,774  --        238,673 2013 Revenues    109,320         90,762        47,751  --        247,833 Change $         (10,529)        2,346         (977)   --        (9,160) Change %         (9.6%)           2.6%           (2.0%)   --        (3.7%)                                                                  2014 Gross       22,679          23,424        10,642  12        56,757 Profit 2014 Gross       23.0%            25.2%          22.8%    --        23.8% Profit % 2013 Gross       26,685          23,040        8,844   (2)       58,567 Profit 2013 Gross       24.4%            25.4%          18.5%    --        23.6% Profit % Change           (4,006)         384           1,798   14        (1,810)                                                                  2014 Profit      8,796           9,101         1,923   (9,117)   10,703 (Loss) 2013 Profit      12,878          9,057         1,191   (9,260)   13,866 (Loss) Change $         (4,082)         44            732     143       (3,163) Change %         (31.7%)          0.5%           61.5%    1.5%       (22.8%)                                                                                                                                   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                                               2014      2013      Change $ Total profit for all segments                   $10,703 $13,866 $(3,163) Elimination of intersegment profit              (1,156)  (615)    (541) Net income attributable to non-controlling      (2)      (80)     78 interest Net income attributable to controlling interest $9,545  $13,171 $(3,626)    Astec Industries, Inc. Backlog by Segment March 31, 2014 and 2013 (in thousands) (Unaudited)             Infrastructure Group Aggregate and Mining Energy Group Total                                   Group 2014 Backlog $144,598           $98,903            $56,135    $299,636 2013 Backlog 120,244             93,867              62,414      276,525 Change $     24,354              5,036               (6,279)     23,111 Change %     20.3%                5.4%                 (10.1%)      8.4%    Astec Industries, Inc. Segment Revenues and Profits 2013 (in thousands) (unaudited)               Infrastructure      Aggregate and  Energy              Group               Mining         Group    Corporate  Total                                   Group Q2 Revenues   103,754            99,884        44,489  --        248,127 Q3 Revenues   83,319             79,792        50,066  --        213,177 Q4 Revenues   102,006            80,076        41,779  --        223,861                                                                  Q2 Gross      19,514             25,615        10,311  2         55,442 Profit Q2 Gross      18.8%               25.6%          23.2%    --        22.3% Profit % Q3 Gross      18,552             19,584        7,667   (16)      45,787 Profit Q3 Gross      22.3%               24.5%          15.3%    --        21.5% Profit % Q4 Gross      20,676             19,610        7,103   (66)      47,323 Profit Q4 Gross      20.3%               24.5%          17.0%    --        21.1% Profit %                                                                  Q2 Profit     6,103              11,141        2,235   (8,190)   11,289 (Loss) Q3 Profit     5,919              6,765         456     (5,935)   7,205 (Loss) Q4 Profit     7,914              6,068         123     (6,980)   7,125 (Loss)                                                                                                                                   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 Three months Three months                                       ended        ended        ended                                         June 30      September 30 December 31                                       2013         2013         2013 Total profit for all segments           $11,289    $7,205     $7,125 Elimination of intersegment profit      (136)       (678)       1,159 Net income attributable to              (61)        (13)        (19) non-controlling interest Net income attributable to controlling  $11,092    $6,514     $8,265 interest   Astec Industries, Inc. Backlog by Segment 2013                                                                         (in thousands) (Unaudited)           Infrastructure Group Aggregate and Mining Energy Group Total                                 Group Q2 Backlog $99,605            $88,706            $52,312    $240,623 Q3 Backlog 114,138             69,583              44,816      228,537 Q4 Backlog 137,119             105,022             48,101      290,242  CONTACT: For Additional Information Contact:          Benjamin G. Brock          President and Chief Executive Officer          Phone: (423) 867-4210          Fax: (423) 867-4127          E-mail: bbrock@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  
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