Exhibit 99.1
Astec Industries, Inc.
News Release
1725 Shepherd Road | Chattanooga, TN 37421 | Phone (423) 899-5898 | Fax (423) 899-4456
ASTEC INDUSTRIES REPORTS SECOND QUARTER 2014 RESULTS
CHATTANOOGA, Tenn. (July 22, 2014) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for their second quarter ended June 30, 2014.
Net sales for the second quarter of 2014 were $277.3 million compared to $248.1 million for the second quarter of 2013, a 12% increase. Earnings for the second quarter of 2014 were $14.5 million or $0.63 per diluted share compared to $11.1 million or $0.48 per diluted share for the second quarter of 2013, an increase of 31%.
Domestic sales increased 14% to $184.7 million for the second quarter of 2014 from $162.3 million for the second quarter of 2013. International sales were $92.6 million for the second quarter of 2014 compared to $85.8 million for the second quarter of 2013, an increase of 8%.
Net sales for the first half of 2014 were $515.9 million compared to $496.0 million for the first half of 2013, a 4% increase. Earnings for the first half of 2014 were $24.0 million or $1.04 per diluted share compared to $24.3 million or $1.05 per diluted share for the first half of 2013, a decrease of 1% per diluted share.
Domestic sales increased 11% to $360.1 million for the first half of 2014 from $324.3 million for the first half of 2013. International sales were $155.8 million for the first half of 2014 compared to $171.7 million for the first half of 2013, a decrease of 9%.
The Company's domestic backlog increased 12%, from $140.7 million at June 30, 2013 to $157.4 million at June 30, 2014. The international backlog at June 30, 2014 remained flat at $106.7 million, when compared to the June 30, 2013 international backlog of $106.6 million.
Consolidated financial information for the second quarter ended June 30, 2014 and additional information related to segment revenues and profits are attached as addenda to this press release.
Commenting on the announcement, Benjamin G. Brock, President and Chief Executive Officer, stated, "We are pleased with our performance during the second quarter. Both domestic and international sales increased during the quarter compared to our second quarter last year. Our total backlog is up 7% over June 30 of last year. We grew revenues and profits in each of our manufacturing segments on a quarterly and year-to-date basis."
Mr. Brock continued, "While we are up on sales and profit versus last year, we are cautious regarding our short- term prospects, particularly as they relate to infrastructure spending. Washington continues to pursue short-term extensions in lieu of a long-term funding bill that would provide visibility to our customers for their capital spending. We are seeing improved private markets for our customers and some states have new policies in place to help with funding of highway projects. That being said, we look forward to improving market conditions as our energy, aggregate, and mining businesses see stable to slightly better business in the near term."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on July 22, 2014 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/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, August 5, 2014 by dialing (877) 660-6853, or (201) 612-7415 for international callers, Account #286, Conference ID# 13586221. A transcription 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; and wood processing. Astec's manufacturing operations are divided into three primary business segments: road building 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, 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 its backlog, anticipated federal infrastructure spending and new state funding policies. 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, rising oil and liquid asphalt prices, rising steel prices, the effect of any future federal stimulus package, 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, 2013.
For Additional Information Contact:
Benjamin G. Brock
President & Chief Executive Officer
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
David C. Silvious
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: dsilvious@astecindustries.com
or
Stephen C. Anderson
Vice President, Director of Investor Relations & Corporate Secretary
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com
| Astec Industries, Inc. | | | | | | |
| Consolidated Balance Sheets | | | | | | |
| (in thousands) | | | | | | |
| (unaudited) | | | | | | |
| | | | | | |
| | June 30 | | | June 30 | |
| | 2014 | | | 2013 | |
| Assets | | | | | | |
| Current assets | | | | | | |
| Cash and cash equivalents | | $ | 18,624 | | | $ | 41,157 | |
| Investments | | | 1,375 | | | | 16,989 | |
| Receivables, net | | | 119,694 | | | | 102,795 | |
| Inventories | | | 364,098 | | | | 322,770 | |
| Prepaid expenses and other | | | 32,423 | | | | 30,177 | |
| Total current assets | | | 536,214 | | | | 513,888 | |
| Property and equipment, net | | | 193,552 | | | | 185,033 | |
| Other assets | | | 73,214 | | | | 41,954 | |
| Total assets | | $ | 802,980 | | | $ | 740,875 | |
| Liabilities and equity | | | | | | | | |
| Current liabilities | | | | | | | | |
| Accounts payable - trade | | $ | 57,592 | | | $ | 45,776 | |
| Other current liabilities | | | 102,281 | | | | 93,803 | |
| Total current liabilities | | | 159,873 | | | | 139,579 | |
| Non-current liabilities | | | 39,188 | | | | 32,531 | |
| Total equity | | | 603,919 | | | | 568,765 | |
| Total liabilities and equity | | $ | 802,980 | | | $ | 740,875 | |
| | | | | | | | |
