Exhibit 99.1
ASTEC INDUSTRIES, INC. REPORTS SECOND QUARTER 2006 RESULTS
CHATTANOOGA, Tenn. (July 24, 2006) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the quarter and six months ended June 30, 2006.
Net income for the second quarter of 2006 was $12.4 million compared with net income of $10.2 million for the second quarter of 2005 for a 21.0% increase. Earnings per diluted share for the second quarter of 2006 was $0.56 compared to $0.49 per diluted share for the second quarter of 2005.
Net sales for the quarter ended June 30, 2006 were $191.3 million compared to $170.8 million for the quarter ended June 30, 2005 for an increase of 12.0%. International sales for the second quarter of 2006 were 28.0% of net sales versus 19.4% for the same period in 2005.
Net sales for the six months ended June 30, 2006 were $377.0 million compared to $332.4 million for the six months ended June 30, 2005, for an increase of 13.4%. International sales for the six months ended June 30, 2006 were 23.4% of net sales versus 18.5% for the same period in 2005. Net income for the six months ended June 30, 2006 was $23.3 million compared with net income of $17.0 million for the same period in 2005 for a 36.7% increase. Earnings per diluted share for the six months ended June 2006 was $1.06 compared to $0.83 per diluted share for the same period in 2005.
The Company's backlog at June 30, 2006, was $121.7 million compared with $88.0 million at June 30, 2005, for a 38.2% increase.
Consolidated financial statements for the quarter ended June 30, 2006 and additional information related to segment sales and profits are attached as addenda to this press release.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "As our attached segment analysis presents, we have increases in all segments in net sales, gross profit percentage, and profits. These results would have been even better but for certain negative events occurring at the end of the quarter that were beyond our control. Backlog is up 38.2% compared to this period last year. The gross profit percentage improved 180 basis points over the same quarter of 2005 and 50 basis points over the first quarter of 2006. Parts sales were up 19.9%. Net income for the second quarter of 2006 over the second quarter of 2005 was up 21.0% and year-to-date net income compared to the same period in 2005 was up 36.7%."
Comments Concerning The Second Quarter of 2006:The following discussion is a compilation of "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those anticipated as of the date of this press release.
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 24, 2006, at 10:00 A.M. Eastern Time to review its second 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/investors, conference calls section. 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 Monday, July 31, 2006 by dialing (877) 660-6853, or (201) 612-7415 for international callers- confirmation #208883. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within five business 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 the second quarter and future generally. 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, downturns in the general economy or the commer cial construction industry, increases in the price of oil or decreases in the availability of oil, increase in the price of raw materials, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, the timing of large contracts, production capacity, general business conditions in the industry, demand for the Company's products, seasonality and cyclicality in operating results, seasonality of sales volumes, 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, 2005.
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) |
(unaudited) |
|
| June 30 | June 30 |
| 2006 | 2005 |
Assets | | |
Current Assets | | |
Cash and cash equivalents | $ 22,015 | $ 9,833 |
Receivables, net | 79,474 | 67,865 |
Inventories | 151,059 | 124,726 |
Prepaid expenses and other | 11,854 | 15,114 |
Total current assets | 264,402 | 217,538 |
Property and equipment, net | 105,183 | 97,937 |
Other assets | 24,884 | 28,532 |
Total assets | $ 394,469 | $ 344,007 |
Liabilities and shareholders' equity | | |
Current liabilities | | |
Revolving credit loan | $ - | $ 3,347 |
Current maturities of long-term debt | - | 3,310 |
Accounts payable | 43,329 | 38,010 |
Other accrued liabilities | 57,230 | 50,808 |
Total current liabilities | 100,559 | 95,475 |
Long-term debt, less current maturities | - | 23,952 |
Other non-current liabilities | 15,759 | 14,681 |
Minority interest in consolidated
subsidiary | 559 | 519 |
Total shareholders' equity | 277,592 | 209,380 |
Total liabilities and shareholders' equity | $ 394,469 | $ 344,007 |
Astec Industries, Inc. and Subsidiaries |
Consolidated Statements of Operations |
(In thousands) |
(unaudited) |
| |
| Three Months Ended | Six Months Ended |
| June 30 | June 30 |
| 2006 | 2005 | 2006 | 2005 |
Net sales | $ 191,262 | $ 170,814 | $ 376,986 | $ 332,448 |
Cost of sales | 143,859 | 131,521 | 284,443 | 258,123 |
Gross profit | 47,403 | 39,293 | 92,543 | 74,325 |
Selling, general, administrative &
engineering expenses | 27,254 | 22,650 | 55,012 | 45,621 |
Income from operations | 20,149 | 16,643 | 37,531 | 28,704 |
Interest expense | 417 | 984 | 847 | 2,164 |
Other income, net of expenses | 187 | 96 | 482 | 135 |
Income before income taxes and minority
interest | 19,919 | 15,755 | 37,166 | 26,675 |
Income taxes | 7,512 | 5,497 | 13,859 | 9,603 |
Minority interest in earnings | 42 | 37 | 45 | 59 |
Net Income | $ 12,365 | $ 10,221 | $ 23,262 | $ 17,013 |
| | | | |
Earnings per Common Share: | | | | |
Net Income: | | | | |
Basic | $ 0.58 | $ 0.51 | $ 1.09 | $ 0.85 |
Diluted | $ 0.56 | $ 0.49 | $ 1.06 | $ 0.83 |
| | | | |
Weighted average common shares
outstanding: | | | | |
Basic | 21,424,731 | 20,008,425 | 21,314,446 | 19,954,422 |
Diluted | 22,044,210 | 20,735,201 | 21,975,519 | 20,575,752 |
| | | | |
Certain amounts for 2005 have been reclassified to conform with the 2006 presentation. |
Astec Industries, Inc. and Subsidiaries |
Segment Sales and Profits |
For the three months ended June 30, 2006 and 2005 |
(dollars in thousands) |
(Unaudited) |
| Asphalt Group | Aggregate andMining Group | Mobile Asphalt Paving Group | Underground
Group | All Others | Total |
2006 Net Sales $ | 48,218 | 77,598 | 37,884 | 27,562 | - | 191,262 |
2005 Net Sales $ | 47,789 | 65,170 | 34,613 | 23,242 | - | 170,814 |
Change $ | 429 | 12,428 | 3,271 | 4,320 | - | 20,448 |
Change % | 0.9% | 19.1% | 9.5% | 18.6% | - | 12.0% |
| | | | | | |
2006 Gross Profit $ | 12,259 | 19,394 | 9,398 | 6,267 | 85 | 47,403 |
2006 Gross Profit % | 25.4% | 25.0% | 24.8% | 22.7% | - | 24.8% |
2005 Gross Profit $ | 11,186 | 16,074 | 7,666 | 4,391 | (24) | 39,293 |
2005 Gross Profit % | 23.4% | 24.7% | 22.1% | 18.9% | - | 23.0% |
Change $ | 1,073 | 3,320 | 1,732 | 1,876 | 109 | 8,110 |
| | | | | | |
2006 Profit (Loss) $ | 6,491 | 9,184 | 5,164 | 2,137 | (10,734) | 12,242 |
2005 Profit (Loss) $ | 6,383 | 7,501 | 3,663 | 748 | (8,090) | 10,205 |
Change $ | 108 | 1,683 | 1,501 | 1,389 | (2,644) | 2,037 |
Change % | 1.7% | 22.4% | 41.0% | 185.7% | (32.7%) | 20.0% |
| | | | | | |
Segment sales are reported net of intersegment sales. Segment gross profit is net of profit on intersegment
sales. A reconciliation of total segment profits to the Company's consolidated net income is as follows: |
| | |
| | | For the three months ended June 30 |
| | | 2006 | 2005 |
Total profit for all segments $ | | 12,242 | 10,205 |
Minority interest earnings of subsidiary $ | | (42) | (37) |
Recapture of intersegment profit $ | | 165 | 53 |
Net Income $ | | | 12,365 | 10,221 |
Astec Industries, Inc. and Subsidiaries |
Segment Sales and Profits |
For the six months ended June 30, 2006 and 2005 |
(dollars in thousands) |
(Unaudited) |
| Asphalt Group | Aggregate andMining Group | Mobile Asphalt Paving Group | Underground
Group | All Others | Total |
2006 Net Sales $ | 103,950 | 148,859 | 74,237 | 49,940 | - | 376,986 |
2005 Net Sales $ | 101,324 | 123,014 | 63,420 | 44,690 | - | 332,448 |
Change $ | 2,626 | 25,845 | 10,817 | 5,250 | - | 44,538 |
Change % | 2.6% | 21.0% | 17.1% | 11.7% | - | 13.4% |
| | | | | | |
2006 Gross Profit $ | 26,821 | 36,604 | 18,651 | 10,487 | (21) | 92,542 |
2006 Gross Profit % | 25.8% | 24.6% | 25.1% | 21.0% | - | 24.5% |
2005 Gross Profit $ | 21,843 | 29,674 | 14,682 | 8,165 | (39) | 74,325 |
2005 Gross Profit % | 21.6% | 24.1% | 23.2% | 18.3% | - | 22.4% |
Change $ | 4,978 | 6,930 | 3,969 | 2,322 | 18 | 18,217 |
| | | | | | |
2006 Profit (Loss) $ | 14,783 | 17,166 | 10,096 | 2,438 | (21,156) | 23,327 |
2005 Profit (Loss) $ | 12,039 | 12,686 | 7,093 | 904 | (15,639) | 17,083 |
Change $ | 2,744 | 4,480 | 3,003 | 1,534 | (5,517) | 6,244 |
Change % | 22.8% | 35.3% | 42.3% | 169.7% | (35.3%) | 36.6% |
| | | | | | |
Segment sales are reported net of intersegment sales. Segment gross profit is net of profit on intersegment
sales. A reconciliation of total segment profits to the Company's consolidated net income is as follows: |
| | |
| | For the six months ended June 30 |
| | | 2006 | 2005 |
Total profit for all segments $ | | 23,327 | 17,083 |
Minority interest in earnings of subsidiary $ | | (45) | (59) |
Elimination of intersegment profit $ | | (20) | (11) |
Net Income $ | | | 23,262 | 17,013 |
Astec Industries, Inc. and Subsidiaries |
Backlog by Segment |
June 30, 2006 and 2005 |
(dollars in thousands) |
(Unaudited) |
| Asphalt Group | Aggregate and Mining Group | Mobile Asphalt Paving Group | Underground
Group | All Others | Total |
2006 Backlog $ | 40,772 | 63,926 | 2,216 | 14,736 | - | 121,650 |
2005 Backlog $ | 29,829 | 45,428 | 6,300 | 6,476 | - | 88,033 |
Change $ | 10,943 | 18,498 | (4,084) | 8,260 | - | 33,617 |
Change % | 36.7% | 40.7% | (64.8%) | 127.5% | - | 38.2% |
