Astec Industries Reports Third Quarter 2016
CHATTANOOGA, Tenn. (October 25, 2016) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their third quarter and year to date ended September 30, 2016.
Net sales for the third quarter of 2016 were $247.8 million compared to $211.4 million for the third quarter of 2015, a 17% increase. Earnings for the third quarter of 2016 were $6.8 million or $0.30 per diluted share compared to $2.3 million or $0.10 per diluted share in the third quarter of 2015, an increase of 200%.
Domestic sales increased 28% to $199.9 million for the third quarter of 2016 compared to $156.3 million for the third quarter of 2015. International sales decreased 13% to $47.9 million for the third quarter of 2016 compared to $55.1 million for the third quarter of 2015.
Net sales for the first nine months of 2016 were $820.9 million compared to $768.1 million for the first nine months of 2015, a 7% increase. Earnings for the first nine months of 2016 were $42.8 million or $1.85 per diluted share compared to $29.2 million or $1.26 per diluted share for the first nine months of 2015, a 47% increase.
Domestic sales increased 20% to $676.3 million for the first nine months of 2016 compared to $562.0 million for the first nine months of 2015. International sales were $144.6 million for the first nine months of 2016 compared to $206.1 million for the first nine months of 2015, a 30% decrease.
The Company’s domestic backlog increased 69% to $325.6 million at September 30, 2016 from $193.1 million at September 30, 2015. The international backlog at September 30, 2016 was $63.7 million compared to $58.7 million at September 30, 2015, an increase of 9%. Total backlog increased 55% to $389.3 million at September 30, 2016 from $251.8 million at September 30, 2015.
Consolidated financial information for the quarter and nine months ended September 30, 2016 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, “We were pleased to improve our earnings by 200% in the third quarter versus the third quarter of last year. We were able to secure and ship orders at a more profitable rate during the quarter mainly due to favorable infrastructure and wood pellet equipment activity.”
Mr. Brock continued, “Despite our strong overall performance, we still face several challenges. Low oil and natural gas prices have hurt our Energy Group sales. The mining slowdown has hurt our Aggregate and Mining Group sales. The strong U.S. Dollar continues to affect our ability to export from our U.S. based operations. Nonetheless, our year-to-date revenues are up 7% and our year-to-date earnings are up 47% versus last year. These positive results are mainly due to good domestic markets for our equipment targeted at the infrastructure and wood pellet industries and execution of our margin improvement plans at our operating subsidiaries. Finally, we are also pleased to report that our backlog is up 55% versus last year indicating continued strong demand for our products.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on October 25, 2016, at 10:00 A.M. Eastern Time to review its September 30, 2016 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 8, 2016 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Account #286, Conference ID# 10099. 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, production and combustion 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 low oil prices, the global mining slow down, the strong U.S. Dollar, and the impact of a long-term highway bill in the United States. 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, 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, 2015.
For Additional Information Contact:
Benjamin G. Brock
President and Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
David C. Silvious
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
Stephen C. Anderson
Vice President, Director of Investor Relations & Corporate Secretary
Phone: (423) 899-5898
Fax: (423) 899-4456