Earnings call transcript Q3 2022

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Operator

Hello, and welcome to the Astec Industries Third Quarter Earnings Call.

As a reminder, this conference call is being recorded.

It is my pleasure to introduce your host, Steve Anderson, Senior Vice President of Administration and Investor Relations. Mr. Anderson, you may begin.

Stephen Anderson

to third welcome conference XXXX and call. you, the quarter Astec earnings Thank

today's Ruffalo, financial a are and me Becky Barry call Joining on and comments, Barry the over Chief then Officer. to provide turn summarize Becky Financial Chief In I'll just our moment, will call to results. Weyenberg, Officer; Executive

intended Act. release future Litigation Any morning uncertainties to the and these statements and that not others forward-looking Before I'll our in and in you our the of remind risks, contain Safe and are that Factors the we for Private future company, that to highlighted qualify may can performance influence the Harbor are contained begin, such performance statements statements by the with are assumptions. results are our filings Reform certain news subject SEC. discussion financial this established of to relate liability are guarantees today's Securities

those ask we that usual, As yourself you with factors. familiarize

to provide useful provide principles, have and information various U.S. management are accounting standardized accepted an company regarding generally U.S. financial to GAAP, In measures, to measures the and non-GAAP results, information investors These by similar believes non-GAAP unlikely which refers the prescribed be other to are, therefore, to calculation companies. financial GAAP comparable meaning effort of company's which no the for additional with investors. measures

materials www.astecindustries.com posted deck. and presentation, Investor the is including to All under or in to Comments reconciliation and Management on news these a GAAP our are results company made related considered of refer appendix release call to at tabs. isolation for non-GAAP as our Presentations today's in and our non-GAAP will Relations the the the of which does a website our intend GAAP during not substitute of be slide results related are measures. earnings items included

turn will over to the I now And call Barry.

Barry Ruffalo

with on will key this an followed quarter, update details on messages joining our of concluding strategic everyone, by for provide made Then opening thank Thank will you progress capital overview from Becky a then our evolution. then begin morning, some questions. on your continued I up you, call Steve. and financial morning. for the and I brief deployment. the us and thoughts Good dynamics results will business before share

Key of Sales X double-digit quarter the quarter robust growth messages remained with increased, overall compared grew even our demand across as sentiment third has have final XX% and with into positive, output XXXX. for and visibility for on achieved, quarter general year, last Customer in our resulted in segments, quarter are the indicators we shown enter Slide while higher order starts macroeconomic backlog growing once to rates are we third steady. that rates soften. the remains products was beginning again, with and solid providing strong order ever the move as in segments sales both highest market XXXX

on chain business job and and done and the culture In Despite these several backlog, navigate has macroeconomic a are that supply combating as over such helps persisted challenges, a factors addition focused our challenges us operations. labor team our last growing our improving on This sales commendable to we continually the these and daily constraints have basis. are we quarters.

year. quarter us and needs, supply and engaging including the position through suppliers to with customer meet by same headcount we to increasing customers both from and chain last better issues and roughly partners, X% successful in were to are We work supply demand

We focus will and on chain supply continue diligent on labor availability an basis. our ongoing

implement to shareholders. our sheet, to and balance invest growth, in maintained As we bullet, which our in return third shown us our transformation strong strategic a enables cash

we our quarter, minutes, serves shareholders $X.XX on this deployment value. to X.X% a week, will and our by announced few the we or more Becky repurchased we this disciplined XXX,XXX $X.X approximately increase per comment million in capital our approach dividend creating last quarterly that to but sustainable share. believe in an own third Just of In shares. balanced

achieving we transform efficiency. to days to our much work and business ahead. progress leverage endeavor. operating believe benefits a to and to years based strategically greater that organization There component for a path this platform we is we journey do, A on on committed technology this are implementing strategies journey remain to our drive Three are by made began on to to but and us new is the global ago, well a key thus the right far, the confident structure. realizing new future that implementing this way automation still a targeted process the to I'm We second

but our In progress earnings executing to aspire our and Again, making. are parallel, strategy and improve Simplify, business and profile. drive Focus I we with pleased are our am team be, growth to Grow the fundamentally not yet we profitable to is where we

forward, for construction-related I significant to chain. anniversary. team was milestone truly celebrated a continue Astec would that Slide revolutionizing I are world. other ago billion innovative founded to as Road From humble Rock grown by the those Industries. bell companies is XX executive Astec NASDAQ In It by connect years Brock, spirit, as on humbled ring achieved Astec we in mission value was milestone to be and we moving to Before of few joined a products global XX members celebrate opening that the we road that the the has entrepreneur delivering our recognize beginnings, X. tremendous to years of manufacturer building like Dr. into shown the products and August equipment an inventor

are the how equipment like responding This in we to and by activities Astec I the building, across has infrastructure review throughput production led current operations. we of capacity business in ongoing is road levels Industry for increasing Turning and is expanding needed as investment backlog, and asphalt markets to support and would dynamics our to to serve. as Slide such aggregate high X, concrete our processing responding. demand remains

We will we these and grow. profitability leverage as investments improve

are long-term should our also provide for be to Additionally, Bill funding own I Highway well. as want these beginning our tight note but are produced addressed components conditions creating suppliers growth. use equipment Many components. manufacturing which tailwinds from Federal shortages challenges, our are and the labor bottlenecks of labor briefly the impacting for are we in labor future the deployed, have processes to in

see in quarters. both to have we the these in challenges expect progress noted, and plans and supply labor to constraints As coming over place action address

expect chain our revenue supply improve the as We normalizes. margins and will

another challenge XX been last has months. the ongoing for Inflation

and to pursue our we'll favorable we ensure delivering strategy However, continue we disciplined our mix, and have made pricing are progress value fully with price customers. the in offsetting are inflation to we volume, to capturing

achieved for the a of record quarter have strong Turning to Slide result eighth order activity to X, as backlog consecutive demand. meet we robust

improvement empower such we are engineers right and ensure driving management. in As we areas workforce, to grow talent targeted as manufacturing the our we with hiring place for project

We technology and automate and all are operations capabilities strategically expand manufacturing equipment are to across the to investing in of leveraging our facilitate sites and demand. our

unifying business us model customers around a and framework shown around The centered on X, markets. Slide aligns OneASTEC

on last commitment model by week Paving the fully We support opportunities values Forward the our our This positions to excellence. headwinds. is in and Road announcing for Association's, objectives industry to approach the articulate core program. proud sustainability. National were operational The Our capitalize to achieve us Asphalt commitment Included to our address evidence

support business This the aligned cost, is a and to program the community model, with embed centralizing primary on Focus XXXX. to asphalt improvement goals initiative our OneASTEC into continuous zero of the an productivity X, asphalt and and pursue footprint and three models strategy, emission Grow educate and complexity in engage, our carbon our operating shown reduce When manufacturing our U.S. empower of of to improve processes. industry-wide common optimizing by our production pillars Slide platforms business our strategic and pavements Simplify,

over With discuss will Becky to the that, now I call financial results. turn detailed our to

Rebecca Weyenberg

and you, morning, Thank everyone. Barry, good

domestic As international in XX%, which shown constant. equipment while By with on and XX% remained XX, XX.X% both increase in $XXX.X XX.X% was increased sales, million, Slide parts, there growth were sales strong region, and a respectively. sales up

As Barry Solutions remains Solutions growing across XX.X%. increased XX.X%. surging Infrastructure international strong, segments robust up backlog, with both XX.X%. with achieved rates quarter in of and eighth record activity were geographies mentioned, XX.X% XX.X% backlog and and we backlog Material consecutive overall of Order order increasing our Backlog domestic

as win commercial are to customers their continue needs our orders with match solutions. teams our We to connecting with

acquired $XX.X impact of X.X% an Adjusted business. fees, million to primarily to increase adjusted manufacturing costs investing were EBITDA basis increased supply in X.X% from expenses, which to costs travel X.X%. and consulting in the costs the XX from decreased as and in adjusted inefficiencies decline are due margin SG&A up The incremental we points chain higher headcount, while was EBITDA

the declined Adjusted year, growth. of SG&A XX.X% sales same percentage last XX.X% future to expenses for strategy in with from line our a period lever to as investments in

expect adjusted overcome We our improve benefits transformation. to as from supply chain challenges margins and EBITDA we realize

value per third which a earnings R&D our program, Brazil XX.X% $X.X net pressures will our for valuation driven optimize driven This benefit tax inflationary share year negative $X.XX, million of and Adjusted Last allowance after recording material and the release rate by transformation had in a by in creation. was excludes credits. costs a company quarter, labor. for long-term in we

income. relative tax weighting to for effective rate the this quarter XX.X%, net adjusted was Our primarily jurisdictional due of

range of still XX% XX% As previously communicated, year the to holds. full

increased sales Solutions XX.X% to parts due Infrastructure XX%, million in volume, Moving mix, to and were sales equipment on Slide $XXX.X international especially up sales the primarily increased net quarter, Domestic and to pricing XX, in favorable while XX.X%. sales.

and sales By million, points to due product, to were part lower, margin chain gross falling also grew challenges. of profit and XXX supply impact points gross logistics basis up XX% Adjusted XX.X%, to SG&A Segment expenses. basis slightly XXX decreased primarily the due higher inflation, equipment margins and XX.X%. to sales were EBITDA increased $XX.X

primarily Segment were declined international decreased increased our and $XXX.X were sales EBITDA X.X% favorable XX, Turning this Slide flat. quarter. mix. XX.X% sales manufacturing up Materials Solutions and Equipment and million, gross million XX.X% Adjusted grew volume profit parts while by basis inefficiencies to cost Domestic sales $XX.X XX.X%. were to for inflation increased driven up pricing essentially XXX to to the margins points margin gross sales segment and XX.X% X.X%. due XX% to

million as In offset X.X% X.X%. to XX, mix The but $XX.X of key On contribution and our EBITDA year-over-year percent more dollars, fell from bridge. volume basis Slide than improved to sales XX a from of highlight the adjusted impact positive points pricing the inflation. we EBITDA drivers

However, negative to that of manufacturing SG&A benefit. expenses offset most disruptions chain supply due efficiencies higher and

to continue benefit from strategy. implementation further and transformation expect we price our ahead, the Looking of realization

as position Slide investing we working capital. in increase our an are to including cash Turning was growth, XX, lower in

supply resolve chain we Our as improve balance expect solid, we to remains manage disruptions. sheet progressively position cash capital working and our and

to and us liquidity of economic negligible Our headwinds. debt enable a withstand variety

As to time, net target our between X.Xx. for a over X.X reminder, range to debt EBITDA is

capital We includes our capital XX. on slide capital shows that shareholder targeted approach the long-term deployment our financial Slide value. growth This criteria. of and strategic follow framework. invested deployment context acquisitions within approach that strategic XX% our to objectives and This objectives disciplined investments a align to maximize return hurdle internal identifying meet a with

to As return tangible Barry we noted, are committed providing a to shareholders.

in we quarter, million $X.X an we quarterly shares. And announced This our in last X.X% week, dividend. increase repurchased

in efficiently across on call on will the by OneASTEC and to the the XX. providing all our Slide like of solutions us beginning global ERP would tools you supports to update more model turning our over implementing summarized transformation Oracle be effectively projects Barry, transformation sites. XXXX, The operating we to of briefly Before May operate I

disclosed, XXXX. conclude previously the months As will process XX approximately take and in will

workflows I team's and our in teams am precisely designed dedicated execute. confident have ability and to phased complete implementation, We to this

efficiencies, targets project The and achieve enablers XX. systems forward about bringing to platform this our our initiative goals. progress. our are financial Oracle Slide you positioning long-term Solutions key greatly I'm of will improve to look updates excited company-wide shown long-term suite further and on This us delivering of on

closing turn that, his comments. Barry over it to will back for With now I

Barry Ruffalo

Thank you, Becky.

key to investment with XX, Turning our Slide review comments I would highlights. my a like to conclude of

been essential the heavy infrastructure positions aligned have and connecting with XX established trends. industries long-term our Astec years, world positive are For build secular in that equipment leadership to has growth with

reputation a and products customer service time become high-quality recognized across Over industry. that superior have our innovative for

sheet and to parts our recurring earnings our and profile. global the base business balance This have weather support a capital us fund leveraged stability opportunities, that our contributes cash establish to balanced improves We aftermarket growth greatly quality economic of to deployment enables challenges. and generates strong to installed

the Grow and the Simplify, will Focus Finally, of our achievement traction three enable strategic and evolution pillars built and goals. is our of gaining vision on long-term

operator, questions. open are call With to any for we that, now ready the

Operator

take Baird. our we [Operator Instructions] with from Mig Dobre And you. first question Thank will

is line open. Your

Mircea Dobre

morning taking the Thank you everyone. for question. Good

Barry Ruffalo

Good morning, Mig.

Rebecca Weyenberg

morning. Good

Mircea Dobre

you My curious the on first can incremental entail this of terms what as how question you a you need give to of kind better comments And a also will do that, maybe intend far be treat that to sort is is if on sense of? aware implementation. adjust we intend out ERP your component CapEx flow that of P&L in like there I'm us through? investments, as or to

Rebecca Weyenberg

I'll little various It's put portion schemes that that's sheet. there Mig. very on one, of cloud, the Sure. take a balance we're very going things. capitalized the Because that on small is gets

a has be we not extent so live. yet site And the to continue to that gone adjusted out

the cost the So their when new we system. retire get they'll system old of

over years. the two And dramatically so next come add-back down our will

live In whole suite with XXXX, mentioned, go points. we'll the at as different we

So ERP next ERP that will And it 'XX rollout. well year. CX live the go elements then of and as be as in the 'XX, HCM, all

we'll we'll see the we And So go. progress. heaviest be as that the split. see come will also, costs XXXX down

Mircea Dobre

of even you guys to this I'm sense Okay. a yes, the not that now But dealing adjusted you're with in that us be sort give position cost all out, of are terms of here a to presuming cash. going is right kind in though we because

Rebecca Weyenberg

correct. It That's is all cash.

of the million program We in the have of has previously. stated keeping in that program. our range the facilities, capital includes that expense. And the It's transformation $XXX which for one also mind total

almost but the is in little expensed, very expense. it's capital there very ERP, all second strictly and talking that's you're program If largely

Mircea Dobre

Understood.

on the then can a And kind in little bit costs X curious of input in bit some materials a figure Okay, your basis, past about lower. you're it, this to as range. are maybe like considering a about we how kind inflation million for raw starting quarters We've call to of this maybe little that I'm of, narrow figures. talk been reported go-forward thinking range a the relatively move $XX-plus

you kind maybe yes, So the and of quarter on comment is. can fourth XXXX into what maybe the setup

Barry Ruffalo

Yes, Mig, to with, anything she add if I'll take is to Becky question Barry. and has can contribute. on that else start this

that is really for that's time QX, outpaced pleased in we've So had along, as pricing company. inflation. that all that up actually inflation in we're what a catching said Earlier we've offset had been year, the we to as experienced pricing pricing first we've inflation basically the

and in we look forward, through As we continue have the as XXXX, we've the into we'll that when QX backlog we XXXX. right earlier rest also pricing Mig, in we to said realized through said prior, as year, in of haven't our now, of this still and realize year that

In that we actually it how to to see actually perspective, inflationary an see From in increase. it's the we've stabilized. is regards slowdown cases, some started

our And we start haven't actually completely go in basis, as inflation so realized. should inflation forward. today inventory year-over-year on We projecting we know that change less a we're through we quarters and move to further there's see that

that got haven't earlier, realized well. But also as we've said know, we pricing I as we

think customers we've well. if to XXXX, pricing our we'll take of moving through in continue to offset now market. at will that have as with look actions pricing we do work the we continue we to look our to got to position that to our that And this dealers into year and forward So more plus rest inflation the continue teams relative at right

got as regards pricing. think visibility. and point more I handle we feel more I place ability said... how better So at we're with good We've Mig, our this got moving And like, time, them forward. control in a in to we in We've

Operator

do speakers. your And Thank we for by appreciate stand your patience. reconnected. while patience. our speakers you we reconnect We have our Please

Barry Ruffalo

I Yes answering Barry. not in you. this I'm your thank off is question. sure Yes, Mig, again, where cut got here

Mircea Dobre

inflation of Well, portions mentioned peaking. and kind what talking last your certain is how that businesses kind I in you backlog pricing into thing Yes. you heard, flowing kind and of the in 'XX, were you and of that's about have of through

Barry Ruffalo

Yes.

right. that's So

the So least experienced pricing the haven't some backlog, we got course We've we've increase yet. you commented year. slowed of realized over inflation as at on, has that what the we seen have in on stabilization, versus

of to to the move there continue So the appropriately we're place value as now into appropriately we'll where to Mig, that we're now position XXXX corner to that look the pricing get And make in is in that because I sit on value marketplace good can we've a through -- XXXX, to order as we take to that forward into in the think, XXXX. we make customers. sure at forward actions move out maintain and but where appropriate positioned outpacing rest kind pricing but really the deliver changes by of generally and our inflation. we turned providing we we're today

Mircea Dobre

Okay.

these instance, mind, of for we proper cost as margins, been seen or XXXX have for so that into is in segment of in months we've over gross that the or to levels Is guess, onerous return we that way? to really maybe with framework price look, here So expect reasonable were to either I not what if view for XXXX? past, gross sort segment kind set call in us it that expectations the when what's it, your margins the nearly as experiencing dynamics premature XX

Barry Ruffalo

Yes, Mig, good question.

rest gross really margin the year believe through will of in XXXX, chain. we forward supply the look governed we be as by So this and that

type margins. had really results, on our was already, from you efficiencies pricing is XXXX gross if supply impact So the the really good inflation our QX at chain stated have issues mix that as an look at manufacturing our today. a that

issues of do to And into supply seen if chain claw that would 'XX supply say, issues generally, I and as throughout the they continue we'll actually improve, forward so, to chain move XXXX. then we've improved and able be course margin. we back So as Mig, see we

some are mind, designs, point within things active offset I our improve but any said, alternative into in that become had now it manufacturing Keep our some are certain better, impact traction, new biggest things time And would that as still but of be teams QX. at determined get in in our an facilities working and doing our -- get impact chain. suppliers should as with this issues, seen more supply start supply suppliers, chain try we're to items that through there and from see extremely engaging we've that is action to And right next year. in we has

Mircea Dobre

Materials Understood. question In us you've you context I dealers. of give surrounding had order here. business know intake from of me. Final does little quite Solutions, And a maybe this segment that that bit its through can a pretty bit strong

you of curious here? strength kind I'm or can category really the equipment sort color of driving what's any by stocking relative So geography here been there's that dealer if or to as other either to provide

Barry Ruffalo

Yes.

I of we this the think as some this time dealer engagement time typically convention year as some Mig, we year around an talked do and ordering is of about well. before, and do period, dealer

that kind year. think, for this signaled, would expect in we've so us, have our as we hit of of we And growth I that potential flow order we time

more Just color, little maybe a bit Mig.

our time some executive what spent we with We've call customers.

look of really came see owners where the customers versus market of our -- is how XX% in it and data 'XX they executives was customers So customers' points as that or XX% of those at be the expect are what they it these customer expected XXXX, going. customers was founders, And out to they I'm are better XX% be of it the XXXX. high-level actually market in And process, see or of more the and within to we've than good through understand 'XX market in as them just to that surveyed that businesses. of XXXX sorry, that businesses two XX% infrastructure

in of question in did spend see commitment 'XX asked 'XX 'XX? of perspective equally did they spend them them it more 'XX than is, Another we've see expect as they'll that and And capital do it that XX% from a as versus they'll how 'XX in much 'XX. XX% budgeting and in perspective,

just some are seeing. that's data primarily of color and the dynamics around market think are I customers. our good customers So course, those And North that American

you have and that hopefully, you more confidence color gives us some why in supports hear market demand. So

Operator

Steve we Ferazani And next Instructions] from our with will [Operator Sidoti. take question

Your line is open.

Steve Ferazani

season. Becky. terms and covered Good you morning sort wanted component what this shortages, bit for a good of what to you're in -- a been I mixed seeing earnings Barry, morning about little of bag ask for your this

Just trying to it is from getting necessary get to your components suppliers? your sense, easier get

mean, struggling are bifurcation of I be also, terms terms there how by of more they And companies in prioritized smaller in seems suppliers. still a to

that. If little on you a can get of take bit

Barry Ruffalo

the question. Yes, good Steve. morning, for Thanks

displays with the and that that equipment, electrical-type have types -- So type on some have I forth, type and equipment so coolers components, we those pretty items hydraulic so issues radiators for were pumps been cooling and and today think, are, components, oil consistent, things. of

So with. the that's generally issues we're types that dealing kind of of

about think side generally, business. the I I significantly. very and model our about direct have where issues that vertically part slowed there's really I this, plant have down would parts really integrated where we're chain say, where There's it, the When the think of supply two of

where some we've chain, drive with say, hydraulics I that's packages. They alternative that's see seen type things supply we our of components so and on new and issues There's in they've teams to actions do really and so forth. to are manage be I hard really differently and the our the some electrical to whether able the more Steve, for our designs, credit procured taken all effectively. part But our through where in this of suppliers, facilities some work and other just and improvement of cooling generally, more equipment we it's business products, would the

going through. we've been I overnight, chain are continue things reduction still severity alluded improvement. work there as the generally, supply that now, some right they're get to, in of but not there's to seen -- a some the to but So issues, honestly, And fixed we we'll

Steve Ferazani

are -- about about bit your you talked customers think a backlog we expecting. and When little what thanks. helpful, That's

federal growth that You your Solutions to highway Infrastructure that some remarks starting starting next expect customers spending of to prepared see that that we think starting about of to projects significant year? in your When in part flow. the see mentioned backlog, beginning is

Stephen Anderson

see the hearing places customers they're well. starting Hey Steve, we're our seeing some from flow. Steve as funds that Anderson. We're in Yes, that to

expected said flow we online the to we new of before, in the in most XXXX. as So projects come and XXXX

So were with expectations customers what confirming that's consistent and the are our that.

know, -- that good mid-XXXX. XXXX, we're pleased So out as you business, a for going is the tailwind through long-term

So glad to see those funds beginning to flow.

Barry Ruffalo

Yes. And just to maybe to add some that. more color

As of months we to customers today, customers that backlog talk about our our longer. is a the have Steve, majority really and nine

confidence have implied good our our they have flow today. a order rate shown So rates work strong start QX. as to through, then us really really backlog stay will to projects continue order they as as of confidence giving And those in that

opportunities really business also is kind they're flow what ability there or set of to only where but the have about a perspective, not just they think margin the their residential relying our revenue I good nonresidential a or from And is towards there's customer also not and perspective. sitting on from just areas

really And Steve, they've now into record know, 'XX from as 'XX to had years and 'XX. you year-over-year-over-year

they've well. So done

we'll some advantage to pricing I move capability we advantage yes, customers, great they're Now take to of impact, inflationary be and of type they'll also they've take able forward but as in time. to talk experiencing got when continue that

Steve Ferazani

this starting into or kind year and -- if next updated of any incorporated you're your of didn't Great. I CapEx? factory efforts hear you've not for plan to Last how if one you expectations and just and terms me, automation year whether in CapEx from

Rebecca Weyenberg

Yes, can I that one, Steve. take

We and it's usage. million we've We range have into million, when goods the timing receiving million we're they'll on really year. go are lowered as that $XX had to the to $XX $XX dropped our and million expectation actually and for when $XX order to on that this

pushed XXXX. into things we've some So out

on. expect have that then $XX we million as to We range carryover that projects, programs automation the to it million be the XXXX in well, of some going $XX continued of but

Barry Ruffalo

Yes.

lot color add Just to maybe to that. more

CapEx All been automation. the put months brown into the of our business really we that last really over has XX a

As most labor. vertically have we've talked upon in about, a high integrated our we dependency very We're sites. Steve, of

capital invest that's doing low-cost we're in that as so really are countries. capacity around we that around really And The produced automation. things

goes in So the in, always we're the cycle of the making that return capital actually regardless business. a sure that we'll have good we're

built shareholder pleased identifying really Astec long-term around through forward. return cycles value projects So will that I'm we've pretty moving momentum with for the

Steve Ferazani

thanks Barry, Becky. Thanks Great.

Barry Ruffalo

Steve. Thanks

Operator

will We question William from next take De Larry our Blair. Maria with

Your line is open.

Barry Ruffalo

Good morning, Larry.

Lawrence De Maria

good thanks, things, first Highway was A of the morning. question Bill. not Hey Bill about last the Infrastructure I the guys. if followed Hey that correctly, few all,

you're cash the for market? numbers the And time some so of starting guys, just what kind to and starting -- market, the confirm, to hitting are your out customers to frame is not expectation projects come. just to But see projects come on meaningful you for meaningful but

Barry Ruffalo

Yes, this Barry. Larry, is hey

application because that's are tell and down, that of Government relief Federal see slowed COVID-relief states, for go of to kind actually our know, we there to also had projects, you and put funds states law flow the now forth to have the well. mentioned. money Yes, also what the which that now are by reiterate were are to would -- I customers certain probably So you that passed. certain as COVID that's were Steve ability some from been allocated actually starting as just some the of Larry, being funds in funded through

they're not able that it's to. funding get other but the types of IIJA types So to also just funding,

that you through really that some that time see always passed funding see XX We've of started the months policies from it's the pleased to good start around today. to through. traction, that said we've So but flow or typically before the is we're flowing law

Lawrence De Maria

that quarter, in for thank the hit. when down a it you more carryover of through maybe price you. then little this And progressive but us think just volume about secondly, Got year next importantly, the break you saw delineate pricing. can very and bit into they I'm kind about price that pricing hikes from the and And specifically, mix helpful, that's curious year

pricing the questions to next and that tackle could you carry year. So over it'll

Barry Ruffalo

Yes.

the seen I -- So already inflation. looked pricing index in said as at volume we as inflation, actually we've outpace versus pricing

we've company. that. had Pricing year-over-year So identified inflation greater on We've $XX a be is than a impact million for impact to from the volumes. nice

So well. we're a that honestly, Larry, quite And mix. [indiscernible] and actually, bit getting door of the out little products more the seen a negative we've from as

being know we in mix So us realized a the and up, volume bit little that and comparison backlog for pricing pricing we a quarter contributor haven't there's all of and pretty on a year-over-year year we corner being good on more drag being where we to that believe turn said XXXX, this first than yet. to that the is up, getting inflation. back being able long that the in pricing caught offset We've have much time we're our

expect we XXXX. So each we pricing have through at rest the move as to through increase we'll through year well will opportunities or go the same look of and needs quarter continue And into that that we frame. as flow pricing as we'll to that time

Lawrence De Maria

not that. I at of Okay. sales, you I constrained. guess, probably obviously, far XQ, that, and top chain differently. And I'm line I guess, looking too XQ similar level thank for know supply

we're seasonality to of don't capacity run better look this the number of the take increases capacity supply a now words, forward? for XX slightly line. out So chain, typical or take the and add three, to the XX X, at top as I go In other some could kind bit gradual know, rates as four bit a we and less we of of next, quarters, little with improving and assume your gradually more at get little price to

Barry Ruffalo

supply that to growth providing remarks it make in we Without I'll at getting will chain yet. a started guidance, improves, margin do or into level of and revenue our haven't prepared We experience and just Yes. do as leave detail even we that.

Lawrence De Maria

luck. Good you. thank Okay,

Barry Ruffalo

Thanks.

Operator

And ladies questions and further any this the additional remarks. would no gentlemen, there time. I to back at Steve Anderson call for are closing or to like turn

Stephen Anderson

technical We staying do apologize appreciate but call. you on the earlier, for the difficulty

our and our you company. your appreciate I for your thank So in in participation conference, interest

X will days. be available the Industries available XX indicates, news As been website November available the and the has so transcript will call section of will for be through today's a release next within under the Relations webcast an Investor Astec XX, days. replay recorded be archived conference The

contained in good our Thank you that call, connect of to additional but Have that this happy earlier day. All I'm morning. distributed with information conclude all. have of the news any will a release questions. is This you

Operator

Ladies today's conclude We you your for gentlemen, this teleconference. participation. and thank does

your disconnect a wonderful now may You day. lines, and have

Astec Industries (ASTE) 2 Nov 222022 Q3 Earnings call transcript