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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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