Astec Industries Reports Third Quarter 2019 Results
- Net sales of $255.8M consistent with Q3 2018
- Gross margin decreased 240 bps to 20.3%, due to softer market conditions
- Q3 EPS $0.13; $0.17 as adjusted compares to $0.30 a year ago
- Introduced aligned strategy for profitable growth – Simplify, Focus and Grow
CHATTANOOGA, Tenn. (October 29, 2019) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its third quarter ended September 30, 2019.
Net sales were relatively flat at $255.8 million compared to $256.6 million for the third quarter of 2018. Domestic sales decreased 2.3% to $189.8 million from $194.2 million a year ago while international sales increased 5.7% to $66.0 million from $62.4 million in the third quarter of 2018.
Net income attributable to controlling interest was $3.0 million or $0.13 per diluted share, compared to net income attributable to controlling interest of $7.0 million or $0.30 per diluted share for the third quarter of 2018, a decrease of 57.0%.
Commenting on the quarterly results, Barry Ruffalo, Chief Executive Officer, stated, “Our results for the quarter highlight our ability to navigate effectively through a challenging environment. Despite margin compression due to softer market conditions, I am confident we are taking the steps necessary to align production with demand and position ourselves for profitable growth over the long-term. I had the opportunity to meet with our regional leaders, facilities managers, and many of our employees and customers around the world during the quarter, and am excited about the opportunities that lie ahead of us. While we are still in the process of developing the details of our strategic path forward, I am excited to introduce the pillars of our aligned strategy for profitable growth – Simplify, Focus and Grow. I look forward to sharing further details of our new strategy in subsequent communications.”
Backlog as of September 30, 2019 was $243.9 million, a decrease of $64.7 million or 21.0% compared to the September 30, 2018 backlog of $308.6 million. Domestic backlog decreased 29.2% to $158.0 million at September 30, 2019 from $223.2 million at September 30, 2018. International backlog at September 30, 2019 remained relatively flat at $85.8 million compared to $85.4 million at September 30, 2018.
Commenting on backlog at quarter end, Mr. Ruffalo continued, “We are actively aligning the business to meet the current demand. The implementation of our Sales and Operations Planning process will help us navigate changing markets and our international strategy will expand our opportunities to accelerate revenue growth.”
Consolidated financial information for the third quarter and nine months ended September 30, 2019 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 and live webcast today, October 29, 2019, at 10:00 A.M. Eastern Time, to review its third quarter and nine-month results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210 (at least 10 minutes prior to the scheduled time for the call). International callers should dial (201) 689-8049. You may also access a live webcast of the call by visiting https://www.investornetwork.com/event/presentation/54354. You will need to give your name and company affiliation and reference Astec Industries. An archived webcast will be available for ninety days at www.astecindustries.com.
A replay of the conference call will be available through November 11, 2019 by dialing (877) 481-4010, or (919) 882-2331 for international callers, Conference ID #54354. 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. (www.astecindustries.com), is a manufacturer of specialized equipment for asphalt road building; aggregate processing; oil, gas and water well drilling and concrete production. Astec's manufacturing operations are divided into three primary business segments: road building, (Infrastructure Group); aggregate processing and mining equipment (Aggregate and Mining Group); and equipment for the extraction and production of fuels 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) market conditions, (ii) efforts to align production with demand, (iii) implementing a Sales and Operations Planning process, and (iv) its backlog activity. 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, 2018.
For Additional Information Contact:
Stephen C. Anderson
Vice President, Director of Investor Relations & Corporate Secretary
Phone: (423) 899-5898
Fax: (423) 899-4456