Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Mar. 22, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ASTEC INDUSTRIES INC | |
Entity Central Index Key | 792987 | |
Current Fiscal Year End Date | -19 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 22,928,686 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $12,464 | $13,023 |
Investments | 2,195 | 1,916 |
Trade receivables | 125,720 | 105,743 |
Other receivables | 4,199 | 1,558 |
Inventories | 388,710 | 387,835 |
Prepaid expenses and other | 19,850 | 28,299 |
Deferred income tax assets | 15,073 | 14,817 |
Total current assets | 568,211 | 553,191 |
Property and equipment, net | 184,922 | 187,610 |
Investments | 10,853 | 11,393 |
Goodwill | 30,867 | 31,995 |
Other long-term assets | 19,220 | 21,276 |
Total assets | 814,073 | 805,465 |
Current liabilities: | ||
Short-term debt | 5,376 | 3,841 |
Accounts payable | 66,220 | 60,987 |
Income taxes payable | 7,228 | 2,418 |
Accrued product warranty | 10,695 | 10,032 |
Customer deposits | 34,183 | 45,086 |
Accrued payroll and related liabilities | 17,899 | 17,265 |
Accrued loss reserves | 3,231 | 3,050 |
Other current liabilities | 21,019 | 18,450 |
Total current liabilities | 165,851 | 161,129 |
Long-term debt | 5,084 | 7,061 |
Deferred income tax liabilities | 15,280 | 16,836 |
Other long-term liabilities | 20,134 | 21,087 |
Total liabilities | 206,349 | 206,113 |
Shareholders' equity | 604,230 | 595,166 |
Non-controlling interest | 3,494 | 4,186 |
Total equity | 607,724 | 599,352 |
Total liabilities and equity | $814,073 | $805,465 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Income (unaudited) [Abstract] | ||
Net sales | $288,748 | $238,673 |
Cost of sales | 222,703 | 181,916 |
Gross profit | 66,045 | 56,757 |
Selling, general, administrative and engineering expenses | 43,804 | 43,424 |
Income from operations | 22,241 | 13,333 |
Other income: | ||
Interest expense | 297 | 73 |
Other income, net of expenses | 1,761 | 814 |
Income from operations before income taxes | 23,705 | 14,074 |
Income taxes | 8,788 | 4,527 |
Net income | 14,917 | 9,547 |
Net income (loss) attributable to non-controlling interest | -188 | 2 |
Net income attributable to controlling interest | $15,105 | $9,545 |
Net income attributable to controlling interest | ||
Basic (in dollars per share) | $0.66 | $0.42 |
Diluted (in dollars per share) | $0.65 | $0.41 |
Weighted average number of common shares outstanding: | ||
Basic (in shares) | 22,904 | 22,786 |
Diluted (in shares) | 23,114 | 23,102 |
Dividends declared per common share (in dollars per share) | $0.10 | $0.10 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Consolidated Statements of Comprehensive Income (unaudited) [Abstract] | ||
Net income | $14,917 | $9,547 |
Other comprehensive income | ||
Change in unrecognized pension and post-retirement benefit costs | 28 | 0 |
Income tax (provision) benefit on change in unrecognized pension and post-retirement benefit costs | 27 | -15 |
Foreign currency translation adjustments | -6,258 | 250 |
Income tax benefit on foreign currency translation adjustments | 350 | 64 |
Other comprehensive income (loss) | -5,853 | 299 |
Comprehensive income | 9,064 | 9,846 |
Comprehensive loss attributable to non-controlling interest | -537 | 131 |
Comprehensive income attributable to controlling interest | $9,601 | $9,715 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $14,917 | $9,547 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 6,040 | 5,528 |
Provision (benefit) for doubtful accounts | -234 | 10 |
Provision for warranties | 4,146 | 3,671 |
Deferred compensation provision | 392 | 585 |
Sale (purchase) of trading securities, net | 327 | -18 |
Stock-based compensation | 359 | 363 |
Tax benefit from stock incentive plans | -347 | -412 |
Deferred income tax benefit | -2,013 | -1,662 |
Gain on disposition of fixed assets | -13 | -62 |
Change in operating assets and liabilities: | ||
Trade and other receivables | -22,001 | -14,050 |
Inventories | -474 | -18,896 |
Prepaid expenses | 2,561 | 1,628 |
Other assets | 1,952 | -222 |
Accounts payable | 5,233 | 13,519 |
Accrued product warranty | -3,384 | -2,917 |
Customer deposits | -10,902 | -816 |
Prepaid and income taxes payable | 10,544 | 5,007 |
Other | -507 | 301 |
Net cash provided by operating activities | 6,596 | 1,104 |
Cash flows from investing activities: | ||
Expenditures for property and equipment | -6,873 | -8,364 |
Sale of short-term investments | 0 | 16,249 |
Proceeds from sale of property and equipment | 55 | 84 |
Net cash provided (used) by investing activities | -6,818 | 7,969 |
Cash flows from financing activities: | ||
Payment of dividends | -2,296 | -2,291 |
Borrowings under bank loans | 1,276 | 2,104 |
Repayments of bank loans | -190 | 0 |
Tax benefit from stock issued under incentive plans | 347 | 412 |
Supplemental Executive Retirement Plan transactions, net | 2,003 | 46 |
Withholding tax paid upon vesting of restricted stock units | -600 | -802 |
Sale of subsidiaries shares to minority shareholders, net | 0 | 1,384 |
Net cash provided by financing activities | 540 | 853 |
Effect of exchange rates on cash | -877 | -521 |
Net increase (decrease) in cash and cash equivalents | -559 | 9,405 |
Cash and cash equivalents, beginning of period | 13,023 | 35,564 |
Cash and cash equivalents, end of period | $12,464 | $44,969 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statement of Equity (unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Company Shares Held by SERP [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] | Total |
In Thousands | |||||||
Balance at Dec. 31, 2014 | $4,586 | $135,887 | ($12,915) | ($2,929) | $470,537 | $4,186 | $599,352 |
Balance (in shares) at Dec. 31, 2014 | 22,930 | ||||||
Net income | 0 | 0 | 0 | 0 | 15,105 | -188 | 14,917 |
Other comprehensive loss | 0 | 0 | -5,853 | 0 | 0 | 0 | -5,853 |
Dividends declared | 0 | 2 | 0 | 0 | -2,298 | 0 | -2,296 |
Stock-based compensation | 0 | 359 | 0 | 0 | 0 | 0 | 359 |
Stock-based compensation (in shares) | 1 | ||||||
Stock issued under incentive plans | 10 | 337 | 0 | 0 | 0 | 0 | 347 |
Stock issued under incentive plans (in shares) | 52 | ||||||
Withholding tax paid upon vesting of RSUs | 0 | -600 | 0 | 0 | 0 | 0 | -600 |
SERP transactions, net | 0 | 902 | 0 | 1,101 | 0 | 0 | 2,003 |
Other | 0 | -1 | 0 | 0 | 0 | -504 | -505 |
Balance at Mar. 31, 2015 | $4,596 | $136,886 | ($18,768) | ($1,828) | $483,344 | $3,494 | $607,724 |
Balance (in shares) at Mar. 31, 2015 | 22,983 |
Significant_Accounting_Policie
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1. Significant Accounting Policies |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Act of 1933. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2014. | |
The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. | |
Dollar and share amounts shown are in thousands, except per share amounts, unless otherwise specified. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which raises the previous threshold for disposals to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The standard also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation. The standard requires the reclassification of assets and liabilities of a discontinued operation in the balance sheet for all periods presented. The standard is effective for public entities for annual periods beginning on or after December 15, 2014 and is to be implemented prospectively. The Company adoption of this standard effective January 1, 2015 did not have a significant impact on the Company's financial position or results of operations. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes existing revenue guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The implementation of this new standard will require companies to use more judgment and to make more estimates than under current guidance. The standard is effective for public companies for annual periods beginning after December 15, 2016. The Company plans to adopt the new standard effective January 1, 2017. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company's financial position or results of operations. |
Earnings_per_Share
Earnings per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per Share [Abstract] | |||||||||
Earnings per Share | Note 2. Earnings per Share | ||||||||
Basic earnings per share are determined by dividing earnings by the weighted average number of common shares outstanding during each period. Diluted earnings per share include the potential dilutive effects of options, restricted stock units and shares held in the Company's Supplemental Executive Retirement Plan. | |||||||||
The following table sets forth the computation of net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income attributable to controlling interest | $ | 15,105 | $ | 9,545 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share | 22,904 | 22,786 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options and restricted stock units | 145 | 207 | |||||||
Supplemental Executive Retirement Plan | 65 | 109 | |||||||
Denominator for diluted earnings per share | 23,114 | 23,102 | |||||||
Antidilutive options are not included in the diluted earnings per share computation. The number of antidilutive options in the three-month periods ended March 31, 2015 and 2014 was not material. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2015 | |
Receivables [Abstract] | |
Receivables | Note 3. Receivables |
Receivables are net of allowances for doubtful accounts of $1,777 and $2,248 as of March 31, 2015 and December 31, 2014, respectively. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 4. Inventories | ||||||||
Inventories consist of the following: | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials and parts | $ | 152,355 | $ | 149,171 | |||||
Work-in-process | 109,817 | 105,163 | |||||||
Finished goods | 99,686 | 102,235 | |||||||
Used equipment | 26,852 | 31,266 | |||||||
Total | $ | 388,710 | $ | 387,835 | |||||
Raw material inventory is comprised of purchased steel and other purchased items for use in the manufacturing process or held for sale in the Company's after-market parts business. The category also includes the manufacturing cost of completed equipment sub-assemblies produced for either integration into equipment manufactured at a later date or for sale in the Company's after-market parts business. | |||||||||
Work-in-process inventory consists of the value of materials, labor and overhead incurred to date in the manufacturing of incomplete equipment or incomplete equipment sub-assemblies being produced. | |||||||||
Finished goods inventory consists of completed equipment manufactured for sale to customers. | |||||||||
Used inventory consists of equipment accepted in trade or purchased on the open market. The category also includes equipment rented to prospective customers on a short-term or month-to-month basis. Used equipment is valued at the lower of acquired or trade-in cost or market determined on each separate unit. Each unit of rental equipment is valued at its original manufacturing cost and is reduced by an appropriate reserve each month during the period of time the equipment is rented. | |||||||||
Inventories are valued at the lower of cost (first-in, first-out) or market, which requires the Company to make specific estimates, assumptions and judgments in determining the amount, if any, of reductions in the valuation of inventories to their net realizable values. The net realizable values of the Company's products are impacted by a number of factors, including changes in the price of steel, competitive sales pricing, quantities of inventories on hand, the age of the individual inventory items, market acceptance of the Company's products, the Company's normal gross margins, actions by our competitors, the condition of our used and rental inventory and general economic factors. Once an inventory item's value has been deemed to be less than cost, a net realizable value allowance is calculated and a new "cost basis" for that item is effectively established. This new cost is retained for that item until such time as the item is disposed of or the Company determines that an additional write-down is necessary. Additional write-downs may be required in the future based upon changes in assumptions due to general economic downturns in the markets in which the Company operates, changes in competitor pricing, new product design or other technological advances introduced by the Company or its competitors and other factors unique to individual inventory items. | |||||||||
The most significant component of the Company's inventory is steel. A significant decline in the market price of steel could result in a decline in the market value of the equipment or parts we sell. During periods of significant declining steel prices, the Company reviews the valuation of its inventories to determine if reductions are needed in the recorded value of inventory on hand to its net realizable value. | |||||||||
The Company reviews the individual items included in its finished goods, used equipment and rental equipment inventory on a model-by-model or unit-by-unit basis to determine if any item's net realizable value is below its carrying value each quarter. This analysis is expanded to include items in work-in-process and raw material inventory if factors indicate those items may also be impacted. In performing this review, judgments are made and, in addition to the factors discussed above, additional consideration is given to the age of the specific items of used or rental inventory, prior sales offers or lack thereof, the physical condition of the specific items and general market conditions for the specific items. Additionally, an analysis of raw material inventory is performed each quarter to calculate reserves needed for obsolete inventory based upon quantities of items on hand, the age of those items and their recent and expected future usage or sale. | |||||||||
When the Company determines that the value of inventory has become impaired through damage, deterioration, obsolescence, changes in price levels, excessive levels of inventory or other causes, the Company reduces the carrying value to estimated market value based on estimates, assumptions and judgments made from the information available at that time. | |||||||||
Abnormal amounts of idle facility expense, freight, handling cost and wasted materials are recognized as current period charges. |
Property_and_Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2015 | |
Property and Equipment [Abstract] | |
Property and Equipment | Note 5. Property and Equipment |
Property and equipment is stated at cost, less accumulated depreciation of $219,416 and $222,001 as of March 31, 2015 and December 31, 2014, respectively. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Fair Value Measurements | Note 6. Fair Value Measurements | ||||||||||||
The Company has various financial instruments that must be measured at fair value on a recurring basis, including marketable debt and equity securities held by Astec Insurance Company ("Astec Insurance"), the Company's captive insurance company, and marketable equity securities held in an unqualified Supplemental Executive Retirement Plan ("SERP"). The obligations of the Company associated with the financial assets held in the SERP also constitute a liability of the Company for financial reporting purposes and are included in other long-term liabilities in the accompanying balance sheets. The Company's subsidiaries also occasionally enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. | |||||||||||||
The carrying amount of cash and cash equivalents, trade receivables, other receivables, revolving debt and accounts payable approximates their fair value because of the short-term nature of these instruments. Investments are carried at their fair value based on quoted market prices for identical or similar assets or, where no quoted prices exist, other observable inputs for the asset. The fair values of foreign currency exchange contracts are based on quotations from various banks for similar instruments using models with market based inputs. | |||||||||||||
Financial assets and liabilities are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The inputs used to measure the fair value are identified in the following hierarchy: | |||||||||||||
Level 1 - | Unadjusted quoted prices in active markets for identical assets or liabilities. | ||||||||||||
Level 2 - | Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted | ||||||||||||
quoted prices for identical or similar assets or liabilities in markets that are not active; or | |||||||||||||
inputs other than quoted prices that are observable for the asset or liability. | |||||||||||||
Level 3 - | Inputs reflect management's best estimate of what market participants would use in pricing | ||||||||||||
the asset or liability at the measurement date. Consideration is given to the risk inherent in | |||||||||||||
the valuation technique and the risk inherent in the inputs to the model. | |||||||||||||
As indicated in the tables below (which excludes the Company's pension assets), the Company has determined that all of its financial assets and liabilities as of March 31, 2015 and December 31, 2014 are level 1 and level 2 in the fair value hierarchy as defined above: | |||||||||||||
31-Mar-15 | |||||||||||||
Level 1 | Level 2 | Total | |||||||||||
Financial Assets: | |||||||||||||
Trading equity securities: | |||||||||||||
SERP money market fund | $ | 537 | $ | - | $ | 537 | |||||||
SERP mutual funds | 2,832 | - | 2,832 | ||||||||||
Preferred stocks | 967 | - | 967 | ||||||||||
Trading debt securities: | |||||||||||||
Corporate bonds | 3,356 | 1,114 | 4,470 | ||||||||||
Municipal bonds | - | 2,024 | 2,024 | ||||||||||
Floating rate notes | 101 | 317 | 418 | ||||||||||
U.S. Treasury bonds and bills | 403 | - | 403 | ||||||||||
Other | - | 1,397 | 1,397 | ||||||||||
Derivative financial instruments | 604 | 604 | |||||||||||
Total financial assets | $ | 8,196 | $ | 5,456 | $ | 13,652 | |||||||
Financial Liabilities: | |||||||||||||
SERP liabilities | $ | - | $ | 6,160 | $ | 6,160 | |||||||
Total financial liabilities | $ | - | $ | 6,160 | $ | 6,160 | |||||||
31-Dec-14 | |||||||||||||
Level 1 | Level 2 | Total | |||||||||||
Financial Assets: | |||||||||||||
Trading equity securities: | |||||||||||||
SERP money market fund | $ | 532 | $ | - | $ | 532 | |||||||
SERP mutual funds | 3,195 | - | 3,195 | ||||||||||
Preferred stocks | 973 | - | 973 | ||||||||||
Trading debt securities: | |||||||||||||
Corporate bonds | 2,825 | 1,184 | 4,009 | ||||||||||
Municipal bonds | - | 2,060 | 2,060 | ||||||||||
Floating rate notes | 100 | 322 | 422 | ||||||||||
U.S. treasury bonds | 622 | - | 622 | ||||||||||
Other | - | 1,496 | 1,496 | ||||||||||
Derivative financial instruments | - | 547 | 547 | ||||||||||
Total financial assets | $ | 8,247 | $ | 5,609 | $ | 13,856 | |||||||
Financial Liabilities: | |||||||||||||
SERP liabilities | $ | - | $ | 8,128 | $ | 8,128 | |||||||
Total financial liabilities | $ | - | $ | 8,128 | $ | 8,128 | |||||||
The Company reevaluates the volume of trading activity for each of its investments at the end of each quarter and adjusts the level within the fair value hierarchy as needed. One corporate bond investment with a market value of $162 changed from Level 1 in the hierarchy at December 31, 2014 to Level 2 at March 31, 2015 due to a reduction in trading activity. | |||||||||||||
The trading equity investments noted above are valued at their fair value based on their quoted market prices, and the debt securities are valued based upon a mix of observable market prices and model driven prices derived from a matrix of observable market prices for assets with similar characteristics obtained with the assistance of a nationally recognized third party pricing service. Additionally, a significant portion of the SERP's investments in trading equity securities are in money market and mutual funds. As these money market and mutual funds are held in a SERP, they are also included in the Company's liability under its SERP. | |||||||||||||
Trading debt securities are comprised of marketable debt securities held by Astec Insurance. Astec Insurance has an investment strategy that focuses on providing regular and predictable interest income from a diversified portfolio of high-quality fixed income securities. | |||||||||||||
Net unrealized gains or losses incurred on investments still held as of March 31, 2015 and December 31, 2014 amounted to gains of $213 and a losses of $17, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2015 | |
Debt [Abstract] | |
Debt | Note 7. Debt |
On April 12, 2012, the Company and certain of its subsidiaries entered into an amended and restated credit agreement whereby Wells Fargo extended to the Company an unsecured line of credit of up to $100,000, including a sub-limit for letters of credit of up to $25,000. During the three months ended March 31, 2015, the highest amount of outstanding borrowings at any time under the facility was $7,871. As of March 31, 2015 and December 31, 2014, there were no outstanding borrowings under the line of credit facility. Letters of credit totaling $12,407, including $8,674 of letters of credit issued to banks in Brazil to secure the local debt of Astec Brazil, were outstanding under the credit facility as of March 31, 2015, resulting in additional borrowing ability of $87,593 under the credit facility. The credit agreement has a five-year term expiring in April 2017. Borrowings under the agreement are subject to an interest rate equal to the daily one-month LIBOR rate plus a 0.75% margin, resulting in a rate of 0.93% as of March 31, 2015. The unused facility fee is 0.175%. Interest only payments are due monthly. The amended and restated credit agreement contains certain financial covenants, including provisions concerning required levels of annual net income, minimum tangible net worth and maximum allowed capital expenditures. The Company was in compliance with these covenants as of March 31, 2015. | |
The Company's South African subsidiary, Osborn Engineered Products SA (Pty) Ltd ("Osborn"), has a credit facility of $7,826 with a South African bank to finance short-term working capital needs, as well as to cover performance letters of credit, advance payment and retention guarantees. As of March 31, 2015, Osborn had $3,281 of outstanding borrowings (which is included in short-term debt in the accompanying balance sheets) and $701 in performance, advance payment and retention guarantees outstanding under the facility. The facility is unsecured and a 0.75% unused facility fee is charged if less than 50% of the facility is utilized. As of March 31, 2015, Osborn had available credit under the facility of $3,844. The interest rate is 0.25% less than the South Africa prime rate, resulting in a rate of 9.0% as of March 31, 2015. | |
The Company's Brazilian subsidiary, Astec do Brasil Fabricacao de Equipamentos Ltda. ("Astec Brazil"), has outstanding working capital loans totaling $5,226 from two Brazilian banks with interest rates ranging from 14.25% to 19.3%. The loans' maturity dates range from November 2016 to September 2017 and are secured by letters of credit totaling $8,674 issued by Astec Industries, Inc. Additionally, Astec Brazil has various 5-year equipment financing loans outstanding with another Brazilian bank in the aggregate of $1,953 as of March 31, 2015 that have interest rates ranging from 3.5% to 6.0%. These equipment loans have maturity dates ranging from September 2018 to September 2019. Astec Brazil's loans are included in the accompanying balance sheets as short-term debt ($2,095) and long-term debt ($5,084). |
Product_Warranty_Reserves
Product Warranty Reserves | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranty Reserves [Abstract] | |||||||||
Product Warranty Reserves | Note 8. Product Warranty Reserves | ||||||||
The Company warrants its products against manufacturing defects and performance to specified standards. The warranty period and performance standards vary by market and uses of its products, but generally range from three months to one year or up to a specified number of hours of operation. The Company estimates the costs that may be incurred under its warranties and records a liability at the time product sales are recorded. The product warranty liability is primarily based on historical claim rates, nature of claims and the associated cost. | |||||||||
Changes in the Company's product warranty liability for the three-month periods ended March 31, 2015 and 2014 are as follows: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Reserve balance, beginning of the period | $ | 10,032 | $ | 12,716 | |||||
Warranty liabilities accrued | 4,146 | 3,671 | |||||||
Warranty liabilities settled | (3,384 | ) | (2,917 | ) | |||||
Other | (99 | ) | 24 | ||||||
Reserve balance, end of the period | $ | 10,695 | $ | 13,494 |
Accrued_Loss_Reserves
Accrued Loss Reserves | 3 Months Ended |
Mar. 31, 2015 | |
Accrued Loss Reserves [Abstract] | |
Accrued Loss Reserves | Note 9. Accrued Loss Reserves |
The Company records reserves for losses related to known workers' compensation and general liability claims that have been incurred but not yet paid or are estimated to have been incurred but not yet reported to the Company. The undiscounted reserves are actuarially determined based on the Company's evaluation of the type and severity of individual claims and historical information, primarily its own claims experience, along with assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause these estimates to change in the future. Total accrued loss reserves were $7,883 as of March 31, 2015 and $7,562 as of December 31, 2014, of which $4,652 and $4,512 were included in other long-term liabilities as of March 31, 2015 and December 31, 2014, respectively. |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 10. Income Taxes |
The Company's combined effective income tax rate was 37.1% and 32.2% for the three-month periods ended March 31, 2015 and 2014, respectively. The Company's effective tax rates for the three-month periods ended March 31, 2015 and 2014 include the effect of state income taxes and other discrete items but does not include benefits for the research and development credits as legislation extending the research and development credit for each year was not enacted by Congress as of the end of each period. |
Segment_Information
Segment Information | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||
Segment Information | Note 11. Segment Information | ||||||||||||||||||||
The Company has three reportable segments, each of which is comprised of multiple business units that offer similar products and services and meet the requirements for aggregation. A brief description of each segment is as follows: | |||||||||||||||||||||
Infrastructure Group - This segment consists of five business units, three of which design, engineer, manufacture and market a complete line of portable, stationary and relocatable hot-mix asphalt plants, wood pellet plants, asphalt pavers, material transfer vehicles, milling machines and paver screeds. The other two business units in this segment primarily operate as Company-owned dealers in the foreign countries in which they are domiciled. These two business units sell, service and install products produced by the manufacturing subsidiaries of the Company, and a majority of their sales are to customers in the infrastructure industry. The principal purchasers of the products produced by this group are asphalt producers, highway and heavy equipment contractors, wood pellet processors and foreign and domestic governmental agencies. | |||||||||||||||||||||
Aggregate and Mining Group - This segment consists of eight business units that design, engineer, manufacture and market a complete line of jaw crushers, cone crushers, horizontal shaft impactors, vertical shaft impactors, material handling, roll rock crushers and stationary rockbreaker systems, vibrating feeders and high frequency vibrating screens, conveyors, inclined, vertical and horizontal screens and sand classifying and washing equipment. The principal purchasers of products produced by this group are distributors, open mine operators, quarry operators, port and inland terminal operators, highway and heavy equipment contractors and foreign and domestic governmental agencies. This group includes the operations of Telestack Limited, which was acquired in April 2014. | |||||||||||||||||||||
Energy Group - This segment consists of five business units that design, engineer, manufacture and market a complete line of drilling rigs for the oil and gas, geothermal and water well industries, high pressure diesel pump trailers for fracking and cleaning oil and gas wells, a variety of industrial heaters to fit a broad range of applications including heating equipment for refineries, oil sands and energy related processing, heat transfer processing equipment, thermal fluid storage tanks, waste heat recovery equipment, whole-tree pulpwood and biomass chippers and horizontal grinders. The principal purchasers of products produced by this group are oil, gas and water well drilling industry contractors, processors of oil, gas and biomass for energy production and contractors in the construction and demolition recycling markets. | |||||||||||||||||||||
Corporate - This category consists of business units that do not meet the requirements for separate disclosure as an operating segment or inclusion in one of the other reporting segments and includes the Company's parent company, Astec Industries, Inc., and Astec Insurance Company, a Company-owned captive insurance company. The Company evaluates performance and allocates resources to its operating segments based on profit or loss from operations before U.S. federal income taxes and corporate overhead and thus these costs are included in the Corporate category. | |||||||||||||||||||||
The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. | |||||||||||||||||||||
Segment Information: | |||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Infrastructure | Aggregate | Energy | Corporate | Total | |||||||||||||||||
Group | and Mining | Group | |||||||||||||||||||
Group | |||||||||||||||||||||
Net sales to external | $ | 135,045 | $ | 106,412 | $ | 47,291 | $ | - | $ | 288,748 | |||||||||||
customers | |||||||||||||||||||||
Intersegment sales | 5,104 | 10,684 | 7,477 | - | 23,265 | ||||||||||||||||
Gross profit | 30,946 | 25,972 | 9,119 | 8 | 66,045 | ||||||||||||||||
Gross profit percent | 22.9 | % | 24.4 | % | 19.3 | % | - | 22.9 | % | ||||||||||||
Segment profit (loss) | $ | 15,511 | $ | 11,594 | $ | 163 | $ | (11,965 | ) | $ | 15,303 | ||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Infrastructure | Aggregate | Energy Group | Corporate | Total | |||||||||||||||||
Group | and Mining | ||||||||||||||||||||
Group | |||||||||||||||||||||
Net sales to external | $ | 98,791 | $ | 93,108 | $ | 46,774 | $ | - | $ | 238,673 | |||||||||||
customers | |||||||||||||||||||||
Intersegment sales | 4,557 | 7,840 | 3,463 | - | 15,860 | ||||||||||||||||
Gross profit | 22,679 | 23,424 | 10,642 | 12 | 56,757 | ||||||||||||||||
Gross profit percent | 23 | % | 25.2 | % | 22.8 | % | - | 23.8 | % | ||||||||||||
Segment profit (loss) | $ | 8,796 | $ | 9,101 | $ | 1,923 | $ | (9,117 | ) | $ | 10,703 | ||||||||||
A reconciliation of total segment profits to the Company's consolidated totals is as follows: | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Total segment profits | $ | 15,303 | $ | 10,703 | |||||||||||||||||
Elimination of intersegment profit | (386 | ) | (1,156 | ) | |||||||||||||||||
Net income | 14,917 | 9,547 | |||||||||||||||||||
Net income (loss) attributable to non-controlling | (188 | ) | 2 | ||||||||||||||||||
interest in subsidiaries | |||||||||||||||||||||
Net income attributable to controlling interest | $ | 15,105 | $ | 9,545 |
Contingent_Matters
Contingent Matters | 3 Months Ended |
Mar. 31, 2015 | |
Contingent Matters [Abstract] | |
Contingent Matters | Note 12. Contingent Matters |
Certain customers have financed purchases of Company products through arrangements in which the Company is contingently liable for customer debt of $2,302 as of March 31, 2015. The maximum potential amount of future payments for which the Company would be liable was equal to $2,302 as of March 31, 2015. These arrangements also provide that the Company will receive the lender's full security interest in the equipment financed if the Company is required to fulfill its contingent liability under these arrangements. The Company has recorded a liability of $101 related to these guarantees as of March 31, 2015. | |
In addition, the Company is contingently liable under letters of credit issued by Wells Fargo totaling $12,407 as of March 31, 2015, including $8,674 of letters of credit that guarantee certain Astec Brazil bank debt. The outstanding letters of credit expire at various dates through November 2017. As of March 31, 2015, Osborn is contingently liable for a total of $830 in performance letters of credit, advance payments and retention guarantees. As of March 31, 2015, Astec Australia is contingently liable for a total of $19 in performance bank guarantees. The maximum potential amount of future payments under these letters of credit and guarantees for which the Company could be liable is $13,256 as of March 31, 2015. | |
The Company is currently a party to various claims and legal proceedings that have arisen in the ordinary course of business. If management believes that a loss arising from such claims and legal proceedings is probable and can reasonably be estimated, the Company records the amount of the loss (excluding estimated legal fees) or the minimum estimated liability when the loss is estimated using a range and no point within the range is more probable than another. As management becomes aware of additional information concerning such contingencies, any potential liability related to these matters is assessed and the estimates are revised, if necessary. If management believes that a loss arising from such claims and legal proceedings is either (i) probable but cannot be reasonably estimated or (ii) reasonably possible but not probable, the Company does not record the amount of the loss, but does make specific disclosure of such matter. Based upon currently available information and with the advice of counsel, management believes that the ultimate outcome of its current claims and legal proceedings, individually and in the aggregate, will not have a material adverse effect on the Company's financial position, cash flows or results of operations. However, claims and legal proceedings are subject to inherent uncertainties and rulings unfavorable to the Company could occur. If an unfavorable ruling were to occur, there exists the possibility of a material adverse effect on the Company's financial position, cash flows or results of operations. | |
During 2004, the Company received notice from the Environmental Protection Agency ("EPA") that it may be responsible for a portion of the costs incurred in connection with an environmental cleanup in Illinois. The discharge of hazardous materials and associated cleanup relate to activities occurring prior to the Company's acquisition of Barber-Greene in 1986. The Company believes that over 300 other parties have received similar notices. At this time, the Company cannot predict whether the EPA will seek to hold the Company liable for a portion of the cleanup costs or the amount of any such liability. The Company has not recorded a liability with respect to this matter because no estimate of the amount of any such liability can be made at this time. |
Shareholders_Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2015 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 13. Shareholders' Equity |
Beginning in 2006 and again in 2011, the Company implemented five-year plans to award key members of management restricted stock units ("RSUs") each year based upon the annual financial performance of the Company and its subsidiaries. Each five-year plan allows up to 700 newly issued shares of Company stock to be granted to employees. The number of RSUs granted each year is determined based upon the performance of individual subsidiaries and consolidated annual financial performance, with additional RSUs available for cumulative five-year results. Generally, each award vests at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier. | |
A total of 66 and 62 RSUs vested during the three-month periods ended March 31, 2015 and 2014, respectively. The Company withheld 14 and 20 shares due to statutory payroll tax withholding requirements upon the vesting of the RSUs in the first three months of 2015 and 2014, respectively and used Company funds to remit the related required minimum withholding taxes to the various tax authorities. The vesting date fair value of the RSUs that vested during the first three months of 2015 and 2014 was $2,785 and $2,504, respectively. Compensation expense of $301 and $305 was recorded in the three-month periods ended March 31, 2015 and 2014, respectively, to reflect the fair value of RSUs granted (or anticipated to be granted for 2015 and cumulative five-year performance) less estimated forfeitures, amortized over the portion of the vesting period occurring during the periods. |
Other_Income_net_of_expenses
Other Income, net of expenses | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income, net of expenses [Abstract] | |||||||||
Other Income, net of expenses | Note 14. Other Income, Net of Expenses | ||||||||
Other income, net of expenses for the three-month periods ended March 31, 2015 and 2014 is presented below: | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest income | $ | 137 | $ | 211 | |||||
Life insurance proceeds | 1,204 | - | |||||||
Gain (loss) on investments | (22 | ) | 207 | ||||||
License fee income | 263 | 385 | |||||||
Other | 179 | 11 | |||||||
Total | $ | 1,761 | $ | 814 |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 15. Derivative Financial Instruments |
From time to time the Company's foreign subsidiaries enter into foreign currency exchange contracts to mitigate exposure to fluctuations in currency exchange rates. The fair value of the derivative financial instrument is recorded on the Company's balance sheet and is adjusted to fair value at each measurement date. The changes in fair value are recognized in the consolidated statements of income in the current period. The Company does not engage in speculative transactions nor does it hold or issue financial instruments for trading purposes. The average U.S. dollar equivalent notional amount of outstanding foreign currency exchange contracts was $8,673 during the three-month period ended March 31, 2015. The Company reported $510 of derivative assets in other current assets and $94 of derivative assets in other long term assets at March 31, 2015. At December 31, 2014, the Company reported $434 of derivative assets in other current assets and $113 of derivative assets in other long-term assets. The Company recognized, as a component of cost of sales, a net gain of $418 on the change in fair value of derivative financial instruments in the three-month period ended March 31, 2015. In the three-months ended March 31, 2014, the Company recognized, as a component of cost of sales, a net loss of $530 on the change in fair value of derivative financial instruments. There were no derivatives that were designated as hedges at March 31, 2015. |
Business_Acquisition
Business Acquisition | 3 Months Ended |
Mar. 31, 2015 | |
Business Acquisition [Abstract] | |
Business Acquisition | Note 16. Business Acquisition |
On April 1, 2014, the Company purchased 100% of the stock of Telestack Limited ("Telestack") for a total purchase price of $36,183. The purchase price was paid in cash with $2,500 deposited into escrow for a period of time not to exceed one year and is subject to certain post-closing adjustments. The post-closing adjustments were finalized during the first quarter of 2015 resulting in a decrease in the purchase price of $178. The adjusted purchase price allocation recorded includes the recognition of $18,078 of goodwill and $14,445 of other intangible assets, based on the foreign exchange rate as of the acquisition date, consisting of trade names (15 year useful life), patents (5 to 10 year useful lives), non-compete agreements (3 year useful life) and customer relationships (11 year useful life). Telestack's operating results are included in the Aggregate and Mining Group beginning in the second quarter of 2014. The revenue and results of operations of Telestack were not significant in relation to the Company's financial statements for the three or nine-month periods ended March 31, 2015 and December 31, 2014, respectively and would not have been significant on a pro forma basis to any earlier periods. | |
Telestack, located in Omagh, Northern Ireland, began operations in 1999 and specializes in the complete in-house design, manufacture, installation and commissioning of a complete line of material handling systems used extensively in the port, aggregate and mining industries. Telestack markets its products throughout the world by a combination of direct sales and distribution through dealers. The Company anticipates the synergies between Telestack and the Company's existing aggregate and wood pellet product lines will benefit both companies. |
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation |
The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X promulgated under the Securities Act of 1933. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America ("U.S. GAAP") for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three-month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Astec Industries, Inc. Annual Report on Form 10-K for the year ended December 31, 2014. | |
The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. | |
Dollar and share amounts shown are in thousands, except per share amounts, unless otherwise specified. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity," which raises the previous threshold for disposals to qualify as discontinued operations and requires new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. The standard also allows companies to have significant continuing involvement and continuing cash flows with the discontinued operation. The standard requires the reclassification of assets and liabilities of a discontinued operation in the balance sheet for all periods presented. The standard is effective for public entities for annual periods beginning on or after December 15, 2014 and is to be implemented prospectively. The Company adoption of this standard effective January 1, 2015 did not have a significant impact on the Company's financial position or results of operations. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers," which supersedes existing revenue guidance under U.S. GAAP. The standard's core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The implementation of this new standard will require companies to use more judgment and to make more estimates than under current guidance. The standard is effective for public companies for annual periods beginning after December 15, 2016. The Company plans to adopt the new standard effective January 1, 2017. The Company has not yet determined what impact, if any, the adoption of this new standard will have on the Company's financial position or results of operations. |
Earnings_per_Share_Tables
Earnings per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings per Share [Abstract] | |||||||||
Computation of earnings per share | The following table sets forth the computation of net income attributable to controlling interest and the number of basic and diluted shares used in the computation of earnings per share: | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
2015 | 2014 | ||||||||
Numerator: | |||||||||
Net income attributable to controlling interest | $ | 15,105 | $ | 9,545 | |||||
Denominator: | |||||||||
Denominator for basic earnings per share | 22,904 | 22,786 | |||||||
Effect of dilutive securities: | |||||||||
Employee stock options and restricted stock units | 145 | 207 | |||||||
Supplemental Executive Retirement Plan | 65 | 109 | |||||||
Denominator for diluted earnings per share | 23,114 | 23,102 | |||||||
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Inventories consist of the following: | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Raw materials and parts | $ | 152,355 | $ | 149,171 | |||||
Work-in-process | 109,817 | 105,163 | |||||||
Finished goods | 99,686 | 102,235 | |||||||
Used equipment | 26,852 | 31,266 | |||||||
Total | $ | 388,710 | $ | 387,835 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||
Schedule of financial assets and liabilities, at fair value | As indicated in the tables below (which excludes the Company's pension assets), the Company has determined that all of its financial assets and liabilities as of March 31, 2015 and December 31, 2014 are level 1 and level 2 in the fair value hierarchy as defined above: | ||||||||||||
31-Mar-15 | |||||||||||||
Level 1 | Level 2 | Total | |||||||||||
Financial Assets: | |||||||||||||
Trading equity securities: | |||||||||||||
SERP money market fund | $ | 537 | $ | - | $ | 537 | |||||||
SERP mutual funds | 2,832 | - | 2,832 | ||||||||||
Preferred stocks | 967 | - | 967 | ||||||||||
Trading debt securities: | |||||||||||||
Corporate bonds | 3,356 | 1,114 | 4,470 | ||||||||||
Municipal bonds | - | 2,024 | 2,024 | ||||||||||
Floating rate notes | 101 | 317 | 418 | ||||||||||
U.S. Treasury bonds and bills | 403 | - | 403 | ||||||||||
Other | - | 1,397 | 1,397 | ||||||||||
Derivative financial instruments | 604 | 604 | |||||||||||
Total financial assets | $ | 8,196 | $ | 5,456 | $ | 13,652 | |||||||
Financial Liabilities: | |||||||||||||
SERP liabilities | $ | - | $ | 6,160 | $ | 6,160 | |||||||
Total financial liabilities | $ | - | $ | 6,160 | $ | 6,160 | |||||||
31-Dec-14 | |||||||||||||
Level 1 | Level 2 | Total | |||||||||||
Financial Assets: | |||||||||||||
Trading equity securities: | |||||||||||||
SERP money market fund | $ | 532 | $ | - | $ | 532 | |||||||
SERP mutual funds | 3,195 | - | 3,195 | ||||||||||
Preferred stocks | 973 | - | 973 | ||||||||||
Trading debt securities: | |||||||||||||
Corporate bonds | 2,825 | 1,184 | 4,009 | ||||||||||
Municipal bonds | - | 2,060 | 2,060 | ||||||||||
Floating rate notes | 100 | 322 | 422 | ||||||||||
U.S. treasury bonds | 622 | - | 622 | ||||||||||
Other | - | 1,496 | 1,496 | ||||||||||
Derivative financial instruments | - | 547 | 547 | ||||||||||
Total financial assets | $ | 8,247 | $ | 5,609 | $ | 13,856 | |||||||
Financial Liabilities: | |||||||||||||
SERP liabilities | $ | - | $ | 8,128 | $ | 8,128 | |||||||
Total financial liabilities | $ | - | $ | 8,128 | $ | 8,128 |
Product_Warranty_Reserves_Tabl
Product Warranty Reserves (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Product Warranty Reserves [Abstract] | |||||||||
Product warranty reserves | Changes in the Company's product warranty liability for the three-month periods ended March 31, 2015 and 2014 are as follows: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Reserve balance, beginning of the period | $ | 10,032 | $ | 12,716 | |||||
Warranty liabilities accrued | 4,146 | 3,671 | |||||||
Warranty liabilities settled | (3,384 | ) | (2,917 | ) | |||||
Other | (99 | ) | 24 | ||||||
Reserve balance, end of the period | $ | 10,695 | $ | 13,494 |
Segment_Information_Tables
Segment Information (Tables) | 3 Months Ended | ||||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||||
Segment Information [Abstract] | |||||||||||||||||||||
Segment information | Segment Information: | ||||||||||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||||||||||
Infrastructure | Aggregate | Energy | Corporate | Total | |||||||||||||||||
Group | and Mining | Group | |||||||||||||||||||
Group | |||||||||||||||||||||
Net sales to external | $ | 135,045 | $ | 106,412 | $ | 47,291 | $ | - | $ | 288,748 | |||||||||||
customers | |||||||||||||||||||||
Intersegment sales | 5,104 | 10,684 | 7,477 | - | 23,265 | ||||||||||||||||
Gross profit | 30,946 | 25,972 | 9,119 | 8 | 66,045 | ||||||||||||||||
Gross profit percent | 22.9 | % | 24.4 | % | 19.3 | % | - | 22.9 | % | ||||||||||||
Segment profit (loss) | $ | 15,511 | $ | 11,594 | $ | 163 | $ | (11,965 | ) | $ | 15,303 | ||||||||||
Three Months Ended March 31, 2014 | |||||||||||||||||||||
Infrastructure | Aggregate | Energy Group | Corporate | Total | |||||||||||||||||
Group | and Mining | ||||||||||||||||||||
Group | |||||||||||||||||||||
Net sales to external | $ | 98,791 | $ | 93,108 | $ | 46,774 | $ | - | $ | 238,673 | |||||||||||
customers | |||||||||||||||||||||
Intersegment sales | 4,557 | 7,840 | 3,463 | - | 15,860 | ||||||||||||||||
Gross profit | 22,679 | 23,424 | 10,642 | 12 | 56,757 | ||||||||||||||||
Gross profit percent | 23 | % | 25.2 | % | 22.8 | % | - | 23.8 | % | ||||||||||||
Segment profit (loss) | $ | 8,796 | $ | 9,101 | $ | 1,923 | $ | (9,117 | ) | $ | 10,703 | ||||||||||
Schedule of segment profits to the Company's consolidated totals | A reconciliation of total segment profits to the Company's consolidated totals is as follows: | ||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
March 31, | |||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Total segment profits | $ | 15,303 | $ | 10,703 | |||||||||||||||||
Elimination of intersegment profit | (386 | ) | (1,156 | ) | |||||||||||||||||
Net income | 14,917 | 9,547 | |||||||||||||||||||
Net income (loss) attributable to non-controlling | (188 | ) | 2 | ||||||||||||||||||
interest in subsidiaries | |||||||||||||||||||||
Net income attributable to controlling interest | $ | 15,105 | $ | 9,545 |
Other_Income_net_of_expenses_T
Other Income, net of expenses (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Other Income, net of expenses [Abstract] | |||||||||
Schedule of Other income, net of expenses | Other income, net of expenses for the three-month periods ended March 31, 2015 and 2014 is presented below: | ||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2015 | 2014 | ||||||||
Interest income | $ | 137 | $ | 211 | |||||
Life insurance proceeds | 1,204 | - | |||||||
Gain (loss) on investments | (22 | ) | 207 | ||||||
License fee income | 263 | 385 | |||||||
Other | 179 | 11 | |||||||
Total | $ | 1,761 | $ | 814 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator: | ||
Net income attributable to controlling interest | $15,105 | $9,545 |
Denominator: | ||
Denominator for basic earnings per share (in shares) | 22,904 | 22,786 |
Effect of dilutive securities [Abstract] | ||
Employee stock options and restricted stock units (in shares) | 145 | 207 |
Supplemental Executive Retirement Plan (in shares) | 65 | 109 |
Denominator for diluted earnings per share (in shares) | 23,114 | 23,102 |
Receivables_Details
Receivables (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Allowances for doubtful accounts | $1,777 | $2,248 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials and parts | $152,355 | $149,171 |
Work-in-process | 109,817 | 105,163 |
Finished goods | 99,686 | 102,235 |
Used equipment | 26,852 | 31,266 |
Total | $388,710 | $387,835 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property and Equipment [Abstract] | ||
Accumulated depreciation | $219,416 | $222,001 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Trading equity securities [Abstract] | ||
SERP money market fund | $537 | $532 |
SERP mutual funds | 2,832 | 3,195 |
Preferred stocks | 967 | 973 |
Trading debt securities [Abstract] | ||
Corporate bonds | 4,470 | 4,009 |
Municipal bonds | 2,024 | 2,060 |
Floating rate notes | 418 | 422 |
U.S. Treasury bonds and bills | 403 | 622 |
Other | 1,397 | 1,496 |
Derivative financial instruments | 604 | 547 |
Total financial assets | 13,652 | 13,856 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 6,160 | 8,128 |
Total financial liabilities | 6,160 | 8,128 |
Investments included in Level 1 were transferred to Level 2 | 162 | |
Net unrealized gains (losses) incurred | 213 | -17 |
Level 1 [Member] | ||
Trading equity securities [Abstract] | ||
SERP money market fund | 537 | 532 |
SERP mutual funds | 2,832 | 3,195 |
Preferred stocks | 967 | 973 |
Trading debt securities [Abstract] | ||
Corporate bonds | 3,356 | 2,825 |
Municipal bonds | 0 | 0 |
Floating rate notes | 101 | 100 |
U.S. Treasury bonds and bills | 403 | 622 |
Other | 0 | 0 |
Derivative financial instruments | 0 | |
Total financial assets | 8,196 | 8,247 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 0 | 0 |
Total financial liabilities | 0 | 0 |
Level 2 [Member] | ||
Trading equity securities [Abstract] | ||
SERP money market fund | 0 | 0 |
SERP mutual funds | 0 | 0 |
Preferred stocks | 0 | 0 |
Trading debt securities [Abstract] | ||
Corporate bonds | 1,114 | 1,184 |
Municipal bonds | 2,024 | 2,060 |
Floating rate notes | 317 | 322 |
U.S. Treasury bonds and bills | 0 | 0 |
Other | 1,397 | 1,496 |
Derivative financial instruments | 604 | 547 |
Total financial assets | 5,456 | 5,609 |
Financial Liabilities [Abstract] | ||
SERP liabilities | 6,160 | 8,128 |
Total financial liabilities | $6,160 | $8,128 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Osborn [Member] | ||
Debt [Line Items] | ||
Amount of credit facility | $7,826 | |
Borrowings outstanding | 3,281 | |
Unused facility fee as a percentage of line of credit (in hundredths) | 0.75% | |
Under utilized facility resulting in unused facility fee (in hundredths) | 50.00% | |
Performance guarantees | 701 | |
Available credit under the facility | 3,844 | |
Basis spread on variable rate (in hundredths) | -0.25% | |
Interest rate at period end (in hundredths) | 9.00% | |
Astec Brazil Working Capital Loans [Member] | ||
Debt [Line Items] | ||
Number of banks with outstanding working capital loans | 2 | |
Astec Brazil Working Capital Loans [Member] | Minimum [Member] | ||
Debt [Line Items] | ||
Interest rate at period end (in hundredths) | 14.25% | |
Astec Brazil Working Capital Loans [Member] | Maximum [Member] | ||
Debt [Line Items] | ||
Interest rate at period end (in hundredths) | 19.30% | |
Astec Brazil Equipment Financing [Member] | ||
Debt [Line Items] | ||
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | 8,674 | |
Term loan | 5 years | |
Minimum interest rate (in hundredths) | 3.50% | |
Maximum interest rate (in hundredths) | 6.00% | |
Current maturities of long-term debt | 2,095 | |
Long-term debt | 5,084 | |
Astec Brazil Equipment Financing [Member] | Minimum [Member] | ||
Debt [Line Items] | ||
Maturity date | 30-Nov-16 | |
Astec Brazil Equipment Financing [Member] | Maximum [Member] | ||
Debt [Line Items] | ||
Maturity date | 30-Sep-17 | |
Wells Fargo [Member] | ||
Debt [Line Items] | ||
Amount of credit facility | 100,000 | |
Sub-limit for letters of credit | 25,000 | |
Highest amount of outstanding borrowings | 7,871 | |
Borrowings outstanding | 0 | 0 |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | 12,407 | |
Line of credit, additional borrowing capacity | 87,593 | |
Term of credit facility | 5 years | |
Maturity date | 30-Apr-17 | |
Interest rate description | daily one month LIBOR rate plus a 0.75% margin | |
Additional rate over base, percentage (in hundredths) | 0.75% | |
Unused facility fee as a percentage of line of credit (in hundredths) | 0.18% | |
Interest rate at period end (in hundredths) | 0.93% | |
Working Capital Loan [Member] | Astec Brazil [Member] | ||
Debt [Line Items] | ||
Borrowings outstanding | 5,226 | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | ||
Debt [Line Items] | ||
Borrowings outstanding | $1,953 | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | Minimum [Member] | ||
Debt [Line Items] | ||
Maturity date | 30-Sep-18 | |
Equipment Financing Loans [Member] | Astec Brazil [Member] | Maximum [Member] | ||
Debt [Line Items] | ||
Maturity date | 30-Sep-19 |
Product_Warranty_Reserves_Deta
Product Warranty Reserves (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Product Warranty Reserves [Abstract] | ||
Product warranty reserve term, minimum | 3 months | |
Standard product warranty term, maximum | 1 year | |
Product warranty reserves [Roll Forward] | ||
Reserve balance, beginning of the period | $10,032 | $12,716 |
Warranty liabilities accrued | 4,146 | 3,671 |
Warranty liabilities settled | -3,384 | -2,917 |
Other | -99 | 24 |
Reserve balance, end of the period | $10,695 | $13,494 |
Accrued_Loss_Reserves_Details
Accrued Loss Reserves (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Loss Reserves [Abstract] | ||
Total accrued loss reserves | $7,883 | $7,562 |
Accrued loss reserves included in other long-term liabilities | $4,652 | $4,512 |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Taxes [Abstract] | ||
Effective income tax rate (in hundredths) | 37.10% | 32.20% |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Segment | ||
Segment Information [Abstract] | ||
Number of reportable segments | 3 | |
Sales [Abstract] | ||
Net sales | $288,748 | $238,673 |
Gross profit | 66,045 | 56,757 |
Gross profit (in hundredths) | 22.90% | 23.80% |
Segment profit (loss) | 15,303 | 10,703 |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||
Total segment profits | 15,303 | 10,703 |
Elimination of intersegment profit | -386 | -1,156 |
Net income | 14,917 | 9,547 |
Net income (loss) attributable to non-controlling interest | -188 | 2 |
Net income attributable to controlling interest | 15,105 | 9,545 |
Infrastructure Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of business units | 5 | |
Number of business units that design, engineer, manufacture and market | 3 | |
Number of business units that operate as Company owned dealers in foreign countries | 2 | |
Aggregate and Mining Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of business units | 8 | |
Energy Group [Member] | ||
Segment Reporting Information [Line Items] | ||
Number of business units | 5 | |
Reportable Segments [Member] | Infrastructure Group [Member] | ||
Sales [Abstract] | ||
Net sales | 135,045 | 98,791 |
Gross profit | 30,946 | 22,679 |
Gross profit (in hundredths) | 22.90% | 23.00% |
Segment profit (loss) | 15,511 | 8,796 |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||
Total segment profits | 15,511 | 8,796 |
Reportable Segments [Member] | Aggregate and Mining Group [Member] | ||
Sales [Abstract] | ||
Net sales | 106,412 | 93,108 |
Gross profit | 25,972 | 23,424 |
Gross profit (in hundredths) | 24.40% | 25.20% |
Segment profit (loss) | 11,594 | 9,101 |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||
Total segment profits | 11,594 | 9,101 |
Reportable Segments [Member] | Energy Group [Member] | ||
Sales [Abstract] | ||
Net sales | 47,291 | 46,774 |
Gross profit | 9,119 | 10,642 |
Gross profit (in hundredths) | 19.30% | 22.80% |
Segment profit (loss) | 163 | 1,923 |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||
Total segment profits | 163 | 1,923 |
Intersegment Eliminations [Member] | ||
Sales [Abstract] | ||
Net sales | 23,265 | 15,860 |
Intersegment Eliminations [Member] | Infrastructure Group [Member] | ||
Sales [Abstract] | ||
Net sales | 5,104 | 4,557 |
Intersegment Eliminations [Member] | Aggregate and Mining Group [Member] | ||
Sales [Abstract] | ||
Net sales | 10,684 | 7,840 |
Intersegment Eliminations [Member] | Energy Group [Member] | ||
Sales [Abstract] | ||
Net sales | 7,477 | 3,463 |
Corporate [Member] | ||
Sales [Abstract] | ||
Net sales | 0 | 0 |
Gross profit | 8 | 12 |
Gross profit (in hundredths) | 0.00% | 0.00% |
Segment profit (loss) | -11,965 | -9,117 |
Reconciliation of total segment profits to the Company's consolidated totals [Abstract] | ||
Total segment profits | ($11,965) | ($9,117) |
Contingent_Matters_Details
Contingent Matters (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Contingent Matters [Abstract] | |
Contingent liability for customer debt | $2,302 |
Maximum potential amount of future payments for customer debt | 2,302 |
Liability recorded related to guarantees | 101 |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | 13,256 |
Number of parties involved in EPA cleanup | 300 |
Letter of Credit Wells Fargo [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit | 12,407 |
Outstanding letters of credit, maximum expiration date | 30-Nov-17 |
Letters of Credit Osborn [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee of subsidiary | 830 |
Letters of Credit Astec Australia [Member] | |
Guarantor Obligations [Line Items] | |
Performance bank guarantee of subsidiary | 19 |
Letters of Credit Astec Brazil [Member] | |
Guarantor Obligations [Line Items] | |
Contingent liabilities for letters of credit issued on behalf of foreign subsidiaries | $8,674 |
Shareholders_Equity_Details
Shareholders' Equity (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||
Maximum shares granted to employees (in shares) | 700 | |
Terms for stock vesting if earlier than five years | Each award vests at the end of five years from the date of grant, or at the time a recipient retires after reaching age 65, if earlier | |
Restricted Stock Units vested (in shares) | 66 | 62 |
Shares withheld upon vesting (in shares) | 14 | 20 |
Fair value of vested Restricted Stock Units | $2,785 | $2,504 |
Compensation expense for 2006 and 2011 incentive plans | $301 | $305 |
2006 Incentive Plan [Member] | ||
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||
Award vesting period | 5 years | |
2011 Incentive Plan [Member] | ||
Restricted stock units under the 2006 and 2011 Incentive Plan [Abstract] | ||
Award vesting period | 5 years |
Other_Income_net_of_expenses_D
Other Income, net of expenses (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Income, net of expenses [Abstract] | ||
Interest income | $137 | $211 |
Life insurance proceeds | 1,204 | 0 |
Gain (loss) on investments | -22 | 207 |
License fee income | 263 | 385 |
Other | 179 | 11 |
Total | $1,761 | $814 |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $604 | $547 |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 510 | 434 |
Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 94 | 113 |
Foreign Exchange Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Average notional amount | $8,673 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments, Gain (Loss) recognized in income (Details) (Not Designated as Hedging Instrument [Member], Foreign Exchange Contract [Member], Cost of Sales [Member], USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Not Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) of derivative financial instruments recognized in income, net | $418 | ($530) |
Business_Acquisition_Details
Business Acquisition (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Goodwill | $30,867 | $31,995 |
Telestack Limited [Member] | ||
Business Acquisition [Line Items] | ||
Date of acquisition | 1-Apr-14 | |
Percentages of stock acquired of Telestack Limited (in hundredths) | 100.00% | |
Total purchase price | 36,183 | |
Decrease in purchase price | 178 | |
Purchase price deposited in escrow | 2,500 | |
Period of time for amount held in escrow | 1 year | |
Goodwill | 18,078 | |
Other intangibles assets | $14,445 | |
Telestack Limited [Member] | Trade names [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of intangible assets | 15 years | |
Telestack Limited [Member] | Patents [Member] | Minimum [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of intangible assets | 5 years | |
Telestack Limited [Member] | Patents [Member] | Maximum [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of intangible assets | 10 years | |
Telestack Limited [Member] | Noncompete agreements [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of intangible assets | 3 years | |
Telestack Limited [Member] | Customer relationships [Member] | ||
Business Acquisition [Line Items] | ||
Useful life of intangible assets | 11 years |