Astec Industries, Inc.
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
CHATTANOOGA, Tenn. (February 22, 2011) – Astec Industries, Inc. (Nasdaq: ASTE) today reported results for its fourth quarter and year ended December 31, 2010. Net sales for the fourth quarter of 2010 were $190.8 million compared to $177.9 million for the fourth quarter of 2009, a 7.3% increase. Domestic sales for the fourth quarter of 2010 were $119.6 million or 62.7% of fourth quarter 2010 net sales compared to $103.1 million for the fourth quarter of 2009 or 58.0% of 2009 fourth quarter net sales, a 16.0% increase. International sales were $71.2 million in the fourth quarter of 2010 or 37.3% of fourth quarter net sales in 2010, a 4.8% decrease from international sales of $74.8 million in the fourth quarter of 2009 or 42.0% of 2009 fourth quarter net sales.
Net income attributable to controlling interest for the fourth quarter of 2010 was $6.0 million or $0.26 per diluted share compared to a net loss attributable to controlling interest in the fourth quarter of 2009 of $15.5 million or $0.69 per share. Net income attributable to controlling interest for the year ended December 31, 2010 was $32.4 million or $1.42 per diluted share compared to $3.1 million or $0.14 per diluted share for 2009. The 2009 fourth quarter and full year results include intangible asset impairment charges of $17.0 million or $15.0 million after tax. Excluding the effects of the 2009 impairment charges, net income attributable to controlling interest increased $6.4 million, or $.28 per diluted share in the fourth quarter of 2010 compared to 2009 and increased $14.3 million, or $0.62 per share, in 2010 compared to 2009.
Net sales for the year ended December 31, 2010 were $771.3 million compared with $738.1 million for the same period in 2009, an increase of 4.5%. Domestic sales were $476.9 million or 61.8% of 2010 revenues, a 2.4% increase over 2009 domestic sales of $465.5 million or 63.1% of 2009 revenues. International sales were $294.4 million or 38.2% of 2010 revenues, an 8.0% increase compared to 2009 international sales of $272.6 million or 36.9% of 2009 revenues.
The Company’s total backlog at December 31, 2010 was $216.6 million compared to $135.1 million at December 31, 2009, an increase of $81.5 million or 60.4%. The international backlog at December 31, 2010 was $109.6 million compared to $62.2 million at the end of 2009, an increase of 76.1%. The domestic backlog at December 31, 2010 was $107.0 million compared to $72.9 million at the end of 2009, an increase of 46.8%. The asphalt segment accounted for 48.5% of the total international backlog increase and the aggregate segment backlog accounted for 38.2% of the total domestic backlog increase.
Consolidated financial information for the fourth quarter and year ended December 31, 2010, additional information related to segment revenues, profits and backlogs, and a reconciliation of non-GAAP measures are attached as addenda to this press release.
Dr. J. Don Brock, Chairman and Chief Executive Officer, commented that, “We are very pleased with the 2010 sales level. The recession that started in September 2008 was deep and fast. Our management right sized their businesses under extremely difficult conditions. For significant domestic growth, we need a responsible six-year highway bill which should give customers the vision to make larger capital investments.”
Dr. Brock continued “As we look forward to 2011, we expect continued growth in international sales. We continue to seek domestic and international acquisitions. We are expanding Astec Australia and will use that business model to sell multiple product lines in other international locations. Without a highway bill, we expect domestic sales to remain weak; however we hope our new and improved products and increased international sales will make up that shortfall. We see 2011 revenue improving over 2010 and expect to return to slow growth.”
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 22, 2011, at 10:00 a.m. EST to review its fourth quarter and fiscal 2010 financial results as well as its near term general outlook for 2011. 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 at: 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 Saturday, March 5, 2011, by dialing (877) 660-6853 or (201) 612-7415 for international callers; Account #: 286; Conference ID #: 367061. 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. We also have a company engaged in the wood grinding and processing industry.
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 2011, the effects on the Company from its backlog, the effects of the economic downturn, stimulus package and credit crisis, and the effects of our recent acquisitions. 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.& #160; 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, rising oil and liquid asphalt prices, rising steel prices, the affect of any future federal stimulus package, decreased funding for highway projects, the relative strength/weakness of the dollar to foreign currencies, the success of new business models and products, general business conditions in the industry, demand for the Company’s products both domestic and international, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected 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, 2009 and the Company’s quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2010. The Company plans to file its Form 10-K timely by March 1, 2011.
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
