Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their first quarter ended March 31, 2013, including a rise in earnings despite a drop in sales.
Net sales for the first quarter of 2013 were $247.8 million compared to $252 million for the first quarter of 2012, a two percent decrease. Earnings from continuing operations for the first quarter of 2013 were $13.3 million or $0.57 per diluted share compared to $12 million for the first quarter of 2012 or $0.52 per diluted share, an increase of 10 percent per diluted share.
Domestic sales increased four percent 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 percent.
The company's domestic backlog increased five percent, 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 six percent 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.
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 $276.5 million."
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four primary business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and oil, gas and water drilling equipment (Underground Group). Additionally, the Other Group contains one subsidiary that manufactures equipment used for wood processing and recycling and one that is a company-owned dealership located in Australia.
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Astec Industries, Inc.
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Consolidated Balance Sheets
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(in thousands)
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(unaudited)
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Mar 31
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Mar 31
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2013
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2012
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Assets
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Current assets
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Cash and cash equivalents
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$ 73,175
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$ 41,642
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Receivables, net
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104,599
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113,609
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Inventories
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322,007
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313,407
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Prepaid expenses and other
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26,733
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21,976
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Total current assets
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526,514
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490,634
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Property and equipment, net
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186,192
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191,489
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Other assets
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40,890
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43,607
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Total assets
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$ 753,596
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$ 725,730
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Liabilities and equity
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Current liabilities
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Accounts payable - trade
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$ 50,781
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$ 56,137
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Other current liabilities
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110,134
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92,593
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Total current liabilities
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160,915
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148,730
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Non-current liabilities
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31,999
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33,901
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Total equity
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560,682
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543,099
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Total liabilities and equity
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$ 753,596
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$ 725,730
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Astec Industries, Inc.
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Consolidated Statements of Income
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(in thousands, except per share data)
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(unaudited)
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Three Months Ended
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Mar 31
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2013
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2012
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Net sales
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$ 247,833
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$ 251,967
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Cost of sales
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189,266
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193,371
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Gross profit
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58,567
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58,596
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Selling, general, administrative & engineering expenses
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40,367
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40,143
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Income from operations
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18,200
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18,453
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Interest expense
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70
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47
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Other income, net of expenses
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752
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849
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Income from continuing operations before income taxes
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18,882
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19,255
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Income taxes on continuing operations
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5,631
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7,231
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Net income from continuing operations
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13,251
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12,024
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Income from discontinued operations, (net of tax of $73)
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-
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234
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Net income
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13,251
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12,258
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Net income attributable to non-controlling interest
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80
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13
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Net income attributable to controlling interest
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$ 13,171
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$ 12,245
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Earnings per Common Share
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Net income attributable to controlling interest from continuing operations
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Basic
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$ 0.58
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$ 0.53
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Diluted
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$ 0.57
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$ 0.52
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Income from discontinued operations, net of tax
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Basic
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$ -
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$ 0.01
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Diluted
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$ -
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$ 0.01
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Net income attributable to controlling interest
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Basic
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$ 0.58
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$ 0.54
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Diluted
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$ 0.57
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$ 0.53
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Weighted average common shares outstanding
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Basic
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22,723
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22,643
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Diluted
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23,080
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23,054
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Astec Industries, Inc.
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Segment Revenues and Profits
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For the three months ended March 31, 2013 and 2012
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(in thousands)
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(unaudited)
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Asphalt Group
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Aggregate and Mining
Group
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Mobile Asphalt Paving
Group
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Underground Group
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All Others
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Total
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2013 Revenues
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71,549
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90,762
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47,290
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14,706
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23,526
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247,833
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2012 Revenues
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68,671
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91,304
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41,993
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22,059
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27,940
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251,967
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Change $
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2,878
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(542)
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5,297
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(7,353)
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(4,414)
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(4,134)
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Change %
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4.2%
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(0.6%)
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12.6%
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(33.3%)
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(15.8%)
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(1.6%)
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2013 Gross Profit
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20,154
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23,040
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10,559
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275
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4,539
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58,567
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2013 Gross Profit %
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28.2%
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25.4%
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22.3%
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1.9%
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19.3%
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23.6%
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2012 Gross Profit
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16,396
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23,737
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10,604
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3,084
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4,775
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58,596
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2012 Gross Profit %
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23.9%
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26.0%
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25.3%
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14.0%
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17.1%
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23.3%
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Change
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3,758
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(697)
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(45)
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(2,809)
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(236)
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(29)
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2013 Profit (Loss)
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11,141
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9,057
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4,221
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(2,381)
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(8,172)
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13,866
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2012 Profit (Loss)
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7,391
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9,571
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3,921
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(173)
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(9,213)
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11,497
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Change $
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3,750
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(514)
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300
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(2,208)
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1,041
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2,369
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Change %
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50.7%
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(5.4%)
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7.7%
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(1276.3%)
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11.3%
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20.6%
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