Astec Industries Reports Fourth Quarter 2017 Results
CHATTANOOGA, Tenn. (February 20, 2018) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their fourth quarter and year ended December 31, 2017.
Net sales for the fourth quarter of 2017 were $312.4 million compared to $326.6 million for the fourth quarter of 2016, a 4.3% decrease. Domestic sales decreased 7.4% to $245.4 million for the fourth quarter of 2017 from $265.0 million for the fourth quarter of 2016. International sales were $67.0 million for the fourth quarter of 2017 compared to $61.6 million for the fourth quarter of 2016, an increase of 8.7%.
Earnings for the fourth quarter of 2017 were $10.9 million, or $0.47 per share, including an income tax benefit from U.S. Tax Reform legislation of $1.1 million, compared to $12.4 million, or $0.53 per diluted share, for the fourth quarter of 2016, a decrease of 11.3% per diluted share.
Net sales for 2017 were $1.185 billion compared to $1.147 billion for 2016, a 3.3% increase. Domestic sales decreased 1.0% to $932.3 million for 2017 from $941.3 million for 2016. International sales were $252.4 million for 2017 compared to $206.2 million for 2016, an increase of 22.5%.
Earnings for 2017 were $37.8 million, or $1.63 per diluted share, compared to $55.2 million, or $2.38 per diluted share, for 2016, a decrease of 31.5% per diluted share. As previously announced, the Company initiated significant design upgrades to its customers' Georgia and Arkansas wood pellet plants to meet full production rates, which negatively impacted earnings per share by approximately $0.59 during the third quarter of 2017.
Commenting on the announcement, Benjamin G. Brock, Chief Executive Officer, stated, "We were pleased to exceed our previously announced earnings projection for the quarter while increasing our backlog to a historically strong $411.5 million. Given our backlog, quote activity and conversations with our customers in both domestic and international markets we are optimistic on our outlook. Our customers are experiencing good market conditions and we are excited for the opportunity to have improved results in 2018."
The Company's backlog at December 31, 2017 was $411.5 million compared to $361.8 million at December 31, 2016, an increase of $49.6 million or 13.7%. Domestic backlog increased 12.3% to $335.9 million at December 31, 2017 from $299.1 million at December 31, 2016. The international backlog at December 31, 2017 was $75.6 million compared to $62.7 million at December 31, 2016, an increase of 20.5%. Excluding pellet plant backlogs, the Company's December 31, 2017 backlog increased $57.3 million, or 22.9%, compared to December 31, 2016. All backlog numbers for prior periods have been recast to include the backlog of RexCon, Inc. acquired in October, 2017.
Consolidated financial information for the fourth quarter and year ended December 31, 2017 and additional information related to segment revenues and profits are attached as addenda to this press release.
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on Tuesday, February 20, 2018 at 10:00 A.M. Eastern Time to review its fourth 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, March 6, 2018 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Conference ID #25199. A transcript 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; wood processing and concrete production. Astec’s manufacturing operations are divided into three primary business segments: road building, specialized industrial products, 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, concrete 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 (i) its backlog activity, (ii) the capital allocation and share repurchase program, and (iii) the engagement of Maine Pointe and efforts to improve strategic sourcing and operational efficiencies. 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, gas 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, 2017.
For Additional Information Contact:
Benjamin G. Brock
President & Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
David C. Silvious
Vice President, Chief Financial Officer and Treasurer
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