EXHIBIT 99.1
ASTEC INDUSTRIES REPORTS FOURTH QUARTER
AND 2004 RESULTS
CHATTANOOGA, Tenn. (March 1, 2005) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the fourth quarter and year ended December 31, 2004.
Revenues for the fourth quarter of 2004 were $111.2 million compared with $82.5 million for the fourth quarter of 2003. Domestic sales were $85.4 million for the fourth quarter of 2004, or 76.8% of 2004 fourth quarter revenues, compared to domestic sales of $58.4 million for the fourth quarter of 2003, or 70.8% of 2003 fourth quarter revenues. International sales were $25.8 million for the fourth quarter of 2004, or 23.2% of 2004 fourth quarter revenues, compared to international sales of $24.1 million for the fourth quarter of 2003, or 29.2% of 2003 fourth quarter revenues. The Company reported a net income of $0.3 million, or $0.01 per diluted share, for the fourth quarter of 2004 compared with a net loss of $24.1 million, or $1.23 per diluted share, for the fourth quarter of 2003. The fourth quarter of 2003 included goodwill impairment expense of $16.3 million. Earnings per share from continuing operations for the fourth quarter were $0.03 per diluted share compared to a loss of $1.24 p er diluted share for the fourth quarter of 2003.
Revenues for 2004 were $504.6 million compared with $402.1 million for 2003. Domestic sales were $382.0 million for 2004, or 75.7% of 2004 revenues, compared to domestic sales of $308.4 million for 2003, or 76.7% of 2003 revenues. International sales were $122.6 million for 2004, 24.3% of 2004 revenues, compared to international sales of $93.7 million for 2003, or 23.3% of 2003 revenues. The Company reported a net income of $19.1 million, or $0.95 per diluted share, for 2004 compared with a net loss of $29.0 million, or $1.47 per diluted share, for the prior year. Income from continuing operations was $0.62 per diluted share for 2004, compared to a loss from continuing operations of $1.56 for 2003.
The Company sold substantially all of the assets and liabilities of Superior Industries of Morris, Inc. on June 30, 2004. The consolidated statement of operations for 2003 has been restated to reflect discontinued operations for Superior. The results from discontinued operations are presented in the income from discontinued operations line and the gain on disposal of discontinued operations (net of tax) and are excluded from all other lines on the consolidated statement of operations.
Consolidated financial statements for the fourth quarter and year ended December 31, 2004 and additional information related to segment revenues and profits are attached as addenda to this press release.
Astec's backlog at December 31, 2004 was $93.5 million compared to $75.9 million for 2003. Astec's backlog at January 31, 2005, was $114.4 million compared with $87.4 million at January 31, 2004 for a 31% increase.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are pleased with our revenues and profits for 2004. We exceeded our internal forecast and believe that we could have performed much better had it not been for the rapid escalation of steel prices. The fourth quarter was seasonably weak as we expected but remained profitable."
"As we look forward in 2005, we are starting with strong backlogs in each company. We are diligently watching our margins in the face of continued component pricing increases. Steel pricing seems to be stabilizing. The Senate, House and Administration are all finally in agreement on a new $284 billion dollar highway bill. This will increase funding for the next five years, especially in 2005 and 2009."
Dr. Brock added, "With our backlog up 31% at January 31 versus the prior year plus more volume for our customers from an improving economy and increased highway funding, we are optimistic about continued improvement in our operations throughout 2005."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on March 1, 2005, at 10:00 a.m. EST to review its fourth quarter and fiscal 2004 financial results as well as its near term general outlook for 2005. The number to call for this interactive teleconference is (800) 938-0653. 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 at:
www.astecindustries.com/investors/corporate_info/conference_calls/default.htm
An archived webcast will be available for 90 days atwww.astecindustries.com.
A replay of the conference call will be available through midnight on Sunday, March 6, 2005, by dialing (877) 519-4471; conference ID number 5729109. A transcription of the conference call will be made available under the investor relations section of the Astec Industries, Inc. website within seven days after the call.
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 business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.
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 Company's financial performance for 2005, the effects on the Company from its backlog and increased customer activity and from increased highway funding, the renewal and amount of the highway bill, continued component price increases, the effects of improvements in the economy on our customers, and the stabilization of steel prices. 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 ma terially 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, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, a failure to comply in the future with covenants in the Company's credit facility or to obtain waivers thereof, rising interest rates, decreased funding for highway projects, 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 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, 2003 and the Company's quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2004.
For Additional Information Contact:
J. Don Brock
Chairman of the Board & C.E.O.
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
F. McKamy Hall
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: mhall@astecindustries.com
or
Stephen C. Anderson
Director of Investor Relations
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
Astec Industries, Inc. and Subsidiaries |
Consolidated Balance Sheets |
(In thousands) |
| December 31 | December 31 |
| 2004 | 2003 |
Assets | | |
Current Assets | | |
Cash and cash equivalents | $ 8,349 | $ 8,751 |
Receivables, net | 45,289 | 46,018 |
Inventories | 126,970 | 110,234 |
Prepaid expenses and other | 17,877 | 18,166 |
Total current assets | 198,485 | 183,169 |
Property and equipment, net | 96,526 | 105,182 |
Other assets | 29,807 | 31,622 |
Total assets | $ 324,818 | $ 319,973 |
Liabilities and shareholders' equity | | |
Current liabilities | | |
Revolving credit loan | $ 8,517 | $ 27,997 |
Current maturities of long-term debt | 3,310 | 8,689 |
Accounts payable - trade | 35,451 | 27,972 |
Other accrued liabilities | 44,718 | 37,510 |
Total current liabilities | 91,996 | 102,168 |
Long-term debt, less current maturities | 25,857 | 38,696 |
Other non-current liabilities | 15,134 | 11,102 |
Minority interest in consolidated subsidiary | 575 | 490 |
Total shareholders' equity | 191,256 | 167,517 |
Total liabilities and shareholders' equity | $ 324,818 | $ 319,973 |
Astec Industries, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(In thousands) |
| Three Months Ended | Twelve Months Ended |
| December 31 | December 31 |
| 2004 | 2003 | 2004 | 2003 |
Net sales | $ 111,171 | $ 82,454 | $ 504,554 | $ 402,066 |
Cost of sales | 90,786 | 71,659 | 401,482 | 336,793 |
Gross profit | 20,385 | 10,795 | 103,072 | 65,273 |
Selling, general, administrative & engineering expenses | 19,310 | 18,886 | 79,861 | 73,859 |
Goodwill impairment | - | 16,261 | - | 16,261 |
Income (loss) from operations | 1,075 | (24,352) | 23,211 | (24,847) |
Interest expense | 861 | 1,305 | 3,889 | 7,284 |
Other income, net of expense | 82 | (134) | 292 | (183) |
Senior note termination expense | - | - | - | (3,837) |
Income (loss) from continuing operations before income taxes | 296 | (25,791) | 19,614 | (36,151) |
Income taxes on continuing operations | (391) | (1,484) | 7,021 | (5,472) |
Minority interest in earnings | 64 | (5) | 111 | 33 |
Income (loss) from continuing operations | 623 | (24,302) | 12,482 | (30,712) |
Income from discontinued operations | 13 | 204 | 2,320 | 2,734 |
Income taxes on discontinued operations | (267) | (38) | (1,155) | (986) |
Gain on disposal of discontinued operations (net of tax of $5,071) | (101) | - | 5,406 | - |
Net income (loss) | $ 268 | $ (24,136) | $ 19,053 | $ (28,964) |
|
Earnings (Loss) per Common Share | | | | |
Income (loss) from continuing operations: | | | | |
Basic | $ 0.03 | $ (1.24) | $ 0.63 | $ (1.56) |
Diluted | $ 0.03 | $ (1.24) | $ 0.62 | $ (1.56) |
| | | | |
Income from discontinued operations: | | | | |
Basic | $ (0.02) | $ 0.01 | $ 0.33 | $ 0.09 |
Diluted | $ (0.02) | $ 0.01 | $ 0.33 | $ 0.09 |
| | | | |
Net income (loss): | | | | |
Basic | $ 0.01 | $ (1.23) | $ 0.96 | $ (1.47) |
Diluted | $ 0.01 | $ (1.23) | $ 0.95 | $ (1.47) |
| | | | |
Weighted average common shares outstanding | | | | |
Basic | 19,865,688 | 19,623,990 | 19,740,699 | 19,671,697 |
Diluted | 20,271,167 | 19,623,990 | 20,079,349 | 19,671,697 |
Astec Industries, Inc. and Subsidiaries |
Segment Revenues and Profits |
For the three months ended December 31, 2004 and 2003 |
(in thousands) |
(Unaudited) |
| | | | | | |
| Asphalt Group | Aggregate andMining Group* | Mobile AsphaltPaving Group | UndergroundGroup | All Others | Total |
2004 Revenues | 26,590 | 52,617 | 21,769 | 9,910 | 285 | 111,171 |
2003 Revenues | 17,668 | 37,708 | 14,204 | 12,680 | 194 | 82,454 |
Change $ | 8,922 | 14,909 | 7,565 | (2,770) | 91 | 28,717 |
Change % | 50.5% | 39.5% | 53.3% | (21.8%) | 46.9% | 34.8% |
| | | | | | |
2004 Gross Profit | 2,605 | 13,579 | 4,709 | 380 | (888) | 20,385 |
2004 Gross Profit % | 9.8% | 25.8% | 21.6% | 3.8% | (311.6%) | 18.3% |
2003 Gross Profit | 645 | 7,921 | 2,321 | (1,093) | 1,001 | 10,795 |
2003 Gross Profit % | 3.7% | 21.0% | 16.3% | (8.6%) | 516.0% | 13.1% |
Change | 1,960 | 5,658 | 2,388 | 1,473 | (1,889) | 9,590 |
| | | | | | |
2004 Profit (Loss) | (1,925) | 5,548 | 1,676 | (2,047) | (2,699) | 553 |
2003 Profit (Loss) | (4,487) | 152 | (2,914) | (16,184) | (834) | (24,267) |
Change $ | 2,562 | 5,396 | 4,590 | 14,137 | (1,865) | 24,820 |
Change % | 57.1% | 3550.0% | 157.5% | 87.4% | (223.6%) | 102.3% |
| | | | | | |
* The segment data for 2003 and 2004 has been adjusted to reflect the sale of Superior Industries of Morris, Inc. |
| | | | | | |
Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment |
revenues. A reconciliation of total segment profits (losses) to the Company's consolidated net income (loss) is as follows: |
| | | | | | |
| | For the three months ended December 31 | |
| | | 2004 | 2003 | | |
Total profit (loss) for all segments | | 553 | (24,267) | | |
Minority interest in (earnings) loss of subsidiary | (64) | 5 | | |
Recapture (elimination) of intersegment profit | 134 | (40) | | |
Consolidated net income (loss) from continuing operations | 623 | (24,302) | | |
Income (loss) from discontinued operations, net of tax | (254) | 166 | | |
Loss on sale of discontinued operations, net of tax | (101) | - | | |
Consolidated net income (loss) | | 268 | (24,136) | | |
| | | | | | |
| | | | | | |
| | | | | | |
Astec Industries, Inc. and Subsidiaries |
Segment Revenues and Profits |
For the twelve months ended December 31, 2004 and 2003 |
(in thousands) |
(Unaudited) |
| Asphalt Group | Aggregate andMining Group* | Mobile AsphaltPaving Group | UndergroundGroup | All Others | Total |
2004 Revenues | 141,050 | 207,397 | 91,390 | 64,386 | 331 | 504,554 |
2003 Revenues | 119,302 | 153,161 | 75,153 | 52,410 | 2,040 | 402,066 |
Change $ | 21,748 | 54,236 | 16,237 | 11,976 | (1,709) | 102,488 |
Change % | 18.2% | 35.4% | 21.6% | 22.9% | (83.8%) | 25.5% |
| | | | | | |
2004 Gross Profit | 25,332 | 49,695 | 20,565 | 9,127 | (1,647) | 103,072 |
2004 Gross Profit % | 18.0% | 24.0% | 22.5% | 14.2% | (497.6%) | 20.4% |
2003 Gross Profit | 14,879 | 31,107 | 15,354 | 1,669 | 2,264 | 65,273 |
2003 Gross Profit % | 12.5% | 20.3% | 20.4% | 3.2% | 111.0% | 16.2% |
Change | 10,453 | 18,588 | 5,211 | 7,458 | (3,911) | 37,799 |
| | | | | | |
2004 Profit (Loss) | 8,109 | 19,685 | 7,554 | (1,653) | (21,205) | 12,490 |
2003 Profit (Loss) | (2,712) | 2,448 | 560 | (22,004) | (9,416) | (31,124) |
Change $ | 10,821 | 17,237 | 6,994 | 20,351 | (11,789) | 43,614 |
Change % | 399.0% | 704.1% | 1248.9% | 92.5% | (125.2%) | 140.1% |
| | | | | | |
* The segment data for 2003 and 2004 has been adjusted to reflect the sale of Superior Industries of Morris, Inc. |
| | | | | | |
Segment revenues are reported net of intersegment revenues. Segment gross profit is net of profit on intersegment |
revenues. A reconciliation of total segment profits (losses) to the Company's consolidated net income (loss) is as follows: |
| | | | | | |
| | For the twelve months ended December 31 | |
| | | 2004 | 2003 | | |
Total profit (loss) for all segments | | 12,490 | (31,124) | | |
Minority interest in earnings of subsidiary | | (111) | (33) | | |
Recapture of intersegment profit | | 103 | 445 | | |
Consolidated net income (loss) from continuing operations | 12,482 | (30,712) | | |
Income from discontinued operations, net of tax | 1,165 | 1,748 | | |
Gain on sale of discontinued operations, net of tax | 5,406 | - | | |
Consolidated net income (loss) | | 19,053 | (28,964) | | |
| | | | | | |
| | | | | | |
Astec Industries, Inc. and Subsidiaries |
Backlog by Segment |
December 31, 2004 and 2003 |
(in thousands) |
(Unaudited) |
| Asphalt Group | Aggregate andMining Group* | Mobile AsphaltPaving Group | UndergroundGroup | All Others | Total |
2004 Backlog | 35,647 | 47,311 | 5,363 | 5,222 | - | 93,543 |
2003 Backlog | 24,889 | 39,508 | 3,134 | 8,349 | - | 75,880 |
Change $ | 10,758 | 7,803 | 2,229 | (3,127) | - | 17,663 |
Change % | 43.2% | 19.8% | 71.1% | (37.5%) | - | 23.3% |
| | | | | | |
* The segment data for 2003 and 2004 has been adjusted to reflect the sale of Superior Industries of Morris, Inc. |
