ASTE - Earnings call transcript Q1 2024

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Operator

Hello, and welcome to Astec Industries First 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 C. Anderson

morning, good and you, everyone. Thank

of comments, in In today's Joining Chief and Chief our I'll the contain Act. Jonker. provide and guarantees and Heinrich uncertainties then assumptions. are company, relate Securities performance the by forward-looking Officer, these others me influence the we certain Financial not statements to to financial the Jaco and statements over Heinrich performance Interim that on Executive filings our Reform to our qualify are van contained President safe risks, discussion subject in the will are you future and the and earnings are for I'll Any today's moment, that call der SEC. our call a Litigation release just remind Jaco Officer, that established are future our are intended such statements harbor Factors this turn results.Before highlighted and Merwe; with liability to of Private could summarize our begin, morning may to results

comparable information which posted related slide of under useful the appendix As provide usual, tabs. of substitute GAAP a non-GAAP to is to including included on does presentation, non-GAAP in information the not Management management and with provide that be meaning or considered we measures. our the U.S. with for as to materials are, are regarding release the investors our deck. Relations refer results, company results Investor we to to measures prescribed related of Presentations company website additional other financial no unlikely measures an at companies. effort www.astecindustries.com measures, have our familiarize and these is the items U.S. our those various earnings in therefore, yourself GAAP be the intend calculation factors.In All non-GAAP ask A of financial by earnings to reconciliation investors. isolation standardized which These and to U.S. GAAP for believes similar you

over I'll So now to Jaco. turn the call

Jaco van der Merwe

you, Thank Steve.

Before team, to take welcome integral moment Astec has interim been I I'd our CFO. Heinrich start the XXXX, quarter, in the for to joining leader Since serving acumen our an of financial recently with Infrastructure like our years public has business he of review a on as company segment. as experience, Finance approximately most Heinrich and our our VP he of financial well. deep knows Solutions XX

Slide hard I Heinrich, hours the he on has Astec into the thanks put for your summarized me that, seamless underplaying our certainly helped and the on and of would first am CFO, All like make work he with a for long although in this to and stepped since transition quarter today's interim have for overview to commitment begin to call.With remarks my role. joining I X. team

segment. indicate, due a Solutions results experienced was our quarter anticipated, Solutions offsetting results, our for first These headwinds more a segment. challenging than headwinds our we what solid our Materials to reported relatively As impacted market Infrastructure in quarter mainly

targeted are call. the to later initiatives action strategy taking our of Materials in headwinds execution these which to in will and cost We overcome return we focused through Solutions, reduction

delivered up quarter overview. X.X% deliver team Solutions. and to We North our right our practices Star, $XXX.X and those gross we to net in innovative continue implied Driving aftermarket Infrastructure tools the hand sales on our and best-in-class margin consolidated in opportunities market remains we expansion million XX.X% see orders first with deliver sequentially. with to margin have objectives.Moving Materials of on and We as growth to sustainable collaborate the develop profitable ahead customers, products and both new and

a the and stemming positive Infrastructure impacted lines. lessen our product concrete sequentially. rate conversions us demand for million, delay continue Heinrich environment. allow range to more we are experienced do finance on to results the constraints lead meet minutes, plants.Our prior our historic While results products at will demand supply up most sales. anticipate Solutions implied by approached from to and share XXXX, implied of With levels times orders see due backlog X.X% in current our moving from Solutions were continued XX% interest were capacity a $XXX.X specific in on a and supplier to This Group, asphalt this, encouraged chain Materials few buy quarter. we were we these but improved through and strong the move the to and rental underlying increase from our orders headwinds to as in the specifics will decrease we forward lower Solutions from for we saw Materials

the of highlight of fruitful in the a previous XXXX. incredibly in was conference customer our with and Another show and the time over XX% increase at quarter, record World Asphalt/AggX engagement visitors strong

received. Slide I framework our very value which to Our long-term plant left well drive deliver will take with attest moment a X. We commitment were to leads, new turning to positive creation. new that to believe customers.Now our products multiple we strategic among sustainable a want mindset displayed discuss to

Focus aftermarket been to Simplify, a significant for we framework, performance, this know, that profitable working Grow. you management structure for last quality call improve strides growth. such excellence and and under excellence, years, As organizational strategic position the inventory under company our several and as in Operating areas operations, made operational have streamline the we we framework

initiatives we are with map, supported ended this framework for evergreen, our fiscal elements with new a excellence largely growth, road moving core strategic forward and engaged X empowered, customer-focused innovation. completed.As key While strategy and of and our pillars, focus operational Simplify, example, such, Grow on XXXX remain in Focus employees, industry-changing by and enabled under the XXXX profitable we

touch on pillar. briefly me Let each

culture to based employees provide needed the an our a our of and on this and the do with ongoing We succeed to life-changing First, development offers Being competitive employer technical that tools opportunities. professional talent. develop it and to leadership align values at Astec is choice high-performing skills through of goal employees. compensation,

in is at improvements the the This our legacy. technology development a of past Astec to operational examples.Finally, strategic a of digital offerings leverage strong cornerstone of organization as driving few been product competitiveness do. new Next, want our and our industry-changing to is core focus by few innovation very a on product simplifying we success. processes operational and key of believe innovation who confidence a ability long on and out has quarters history and and excellence deliver to gives the better The goals. market rolling We production commercial what approach across over increases our our Innovation customer build and that our connectivity. much our is we our our success us means

Our X us business Slide for turning and an our employees, help strategic would value our these customers to our pillars focus on momentum and to X. build drive on to support shareholders.Now efforts provide current like dynamics. will I on our update

sales decreased we on strategic driving including net million, chain sales inventory Solutions, growing saw efficiencies supply X.X%. reduction. channels, focused Infrastructure and our accounts, our strengthening cost We $XXX.X For are strong which of control ensuring and

but was mainly this chain due to As supply I decline a sales. earlier, mentioned issue, part by was increased this partially offset select

side, impacted delay a margin adjusted sales of the factors, of adjusted due million, equipment saw and a operating Materials which and manufacturing Solutions reported reflects lower points due XX.X%. margin segment of costs. XX we inefficiencies.On decreased select EBITDA and including also supply XX.X%, dealers. segment decreased basis volume-related to $XXX This combination lower which by basis operating to manufacturing conversions slower X% inventory-related of constraints net We with chain of product decrease EBITDA the volume, latter Separately, sales, points. XXX inefficiencies our results contractors sales the were are finance These capacity and of

year-over-year, up to contract We business. according the year-over-year, with highway Highway Federal also the to Road provide Association. an Transportation wanted as increased relates it awards total state budgets and to Builders Bill pavement on XX% Federal American and update our XX%

asphalt numbers, further X, moving these equipment expect forward.On production orders. implied continued demand concrete building Given and for road Slide we we highlight strong

to $XXX million million in comparison last said, I $XXX is X.X% quarter. implied sequentially up As orders at

Infrastructure Additionally, decrease Materials Solutions from the XX% orders from we a expect. momentum indicator last this million positive this $XXX to quarter, quarter Solutions saw implied million Separately, $XXX X.X% increased strong quarter of $XXX stemming from constraints million this change, a lower I interest to due capacity quarter, buy current $XX earlier, last said finance environment. conversions million to from the as and quarter rate rental to

of a Infrastructure our Solutions our a $XXX.X of range. we was As X/X Solutions of our sequentially, XXXX, our backlog million, Infrastructure XX, increase X.X% Solutions decrease is of million, $XXX.X March up total reminder, returning backlog was X.X% X, million, makes for Materials as backlog a and Backlog sequentially. for Slide historical business.On $XXX.X trends. show to

up Slide were I overall our and orders this we the is of well and to products to positioned noted As strategy. and believe X. consolidated earlier implied I growth innovation earlier, meet into backlog sequentially, we development our convert to new important product sales.Moving how X.X% demand noted are

Asphalt/AggX Let me March. at new show products of some trade highlight we World of the in exhibited the

or minimizing waste CCPR ReMix reclaimed and asphalt sustainable construction RAP, road utilizes Our system efficiently pavement promoting practices.

these plants. our burner cloth insights Controls artificial industry the to Vari-Frequency performance Various now technologies operating ability levels that call empower the Intelliflex We discuss into into intelligence aggregate of operators hard intuitive us of our performance mixing the provides safety innovative and to System and to and feedback for blinding, products Our cost. customers' at detailed turn provide these Astec moisture Screen at reduce received Heinrich apply with data to teams future.With Technology with Burner and that, get will our increase to financial features over control asphalt The I will advanced visibility them World eliminate are Asphalt/AggX, strong enable work Moisture results. revolutionize IntelliPac hands. virgin products new with on enabled in screen will its real-time operations and

Heinrich Jonker

you, morning, Thank Jaco, good everyone. and

wanted share I Before of this in our honored overview how role. into serving am the I be interim results, I to to jump

For team. transition have smooth. our And colleagues Finance, to support I as almost my worked X been Solutions. this has that new role Due Jaco finance to alongside I President, collaboration, have closely Vice Astec and time, served during the and Infrastructure years, broader

to Materials X comprised strong at for our every the have produced, the of customers for I our has delivering customer I upon wanted reportable products the nature that Based everyone Solutions X, focused day sites review type I based XXXX. were start, segment. the the deep company's beginning Each and America The changed previously have and and talent company the Latin considerations. of a We have segments of production January moved on LatAm of reportable bench and or is Astec, Digital products nature other segment segment know factors, the segments. reported sites process, of Astec shareholders.Before LatAm Infrastructure Solutions share of the in and sites services and and and these Australia among the Australia on a the to

has and Astec Digital was and Infrastructure in previously Corporate segment. Other included the Solutions moved to the category

financial $XXX.X Solutions results the on quarter, Slide sales to Infrastructure Solutions Group metric profit or that, the segment for numbers. and revised to is our periods from for to the for Although million in primarily composition first a due impact let's Net specific of the have my our chain and supply changes segment quarter discuss the I'll XX. been overall and this of prior capacity delays lower relatively constraints from change both conversions review minor, decreased the finance the reflect Materials comparability.With Group. supplier begin loss calculation XX.X%

make as a for asphalt and our As mentioned million down plants. international or to $XX.X Jaco, with ground XXXX million. decrease domestic strong region, By X.X% or XX.X% demand see net the net by concrete by across markets, to expect were continue sales and do remainder slightly of we decreased $X.X we sales up of

the U.S. represents a of XX% consolidated our As reminder, sales. around

did $XX.X points saw decreased in EBITDA related sites X.X%, costs. margin, of or select inflation.Increased other This a XXX to were XX.X% EBITDA year. activity and Adjusted pricing $XX we higher which net during costs largely decline a respectively. margin million manufacturing the restructuring million.Further, SG&A of and and prior sales a decrease or a to but was we basis volumes, reported lower recovery Additionally, partly linked personnel part by to period impacted at decrease with $XX.X costs EBITDA adjusted sales decreased both driven offset of by onetime million, due XX.X% to related adjusted equipment efficiencies XX.X% increase or

and XX.X%, exhibit Additionally, EPS support partially were GAAP increased $X.XX promotional the lower technology consulting and had by costs EPS was in $X.XX. compared to Adjusted and a $X.XX we to costs. offset of decrease quarter, compared $X.XX of

basis to XX. on year costs We as XXXX. decreased XX%.Moving rate and points lower adjusted sales offset domestic previously attributable to by Segment volumes, XX.X%. effective first mentioned, $X.X were X.X%, net basis EBITDA implemented of million, decreased and related decreased lower tax Slide lower These XX mix, as was We see and sales other late conditions XX.X% to quarter manufacturing the segment anticipate sales, in and million, manufacturing respectively. declines inflation.Moving which strong other volumes, sales. decreased equipment EBITDA mix, did higher to inefficiencies were XX.X% adjusted parts first constraints and contractors rightsizing while XXX transformation and $X.XX from respectively. decreased capacity as for year. operating operating volume lower and a by excludes cost partially up as Slide decreased the and after dealers declines XX.X% this to performance conversions. we XX.X%, EBITDA our international of XX%, by mentioned Solutions $XXX.X the up net inflation.On net adjusted first due of international driven the attributable volume to net million, to well XX.X% pricing million XX. of margin parts primarily and a product adjusted EBITDA segment sales X%. and adjusted were EBITDA X.X% did which, Segment softening The from Infrastructure operating the equipment which partly the half was XX, Solutions were offset to which Materials sales and sales, delay of net during $XXX and we bridge. costs, result quarter operating $XX.X sales, EPS costs period equipment down show margin points supply to to a XX.X%. X%, the sales were see and adjusted sales, Our to lower SG&A sales $X.XX of related also were dealers from with Slide equipment which sales XX.X%, finance net our chain inefficiencies pricing by quarter decreased Separately, select I were to XX.X% contractors adjusted in activities Domestic We

in December the other which slight with mix available As of X.X%. pricing other XX. million earlier, $X.X and decline in XX.X% adjusted $X.X I shared mostly we manufacturing from decline decreased of mentioned compared million SG&A previously period $XX.X $XX volume, costs million, points and million, to EBITDA We relates million, to of of EBITDA quarter from to of to adjusted $XXX.X Slide $XXX.X $XX.X million, and inventory and saw basis of credit had the and a liquidity margin $X.X equivalents the a benefit million We impact of to available and adjustments inefficiencies cash cash which total XXX XXXX. XX.X% million costs.Turning and ended as XX, impact with of inflation

growth quarter, capital of for strategy to and approach operations $X.X capital X.X%.As in our acquisitions cash our in used spent issued that and and a quarter $XX and efficiency. with capacity balanced continue deployment growth continue increase M&A expenditure of cash and a Our first in the disciplined improve financial XX, investments see of execute a first align on decreased quarter Slide returning you'll the $X.XX shareholders, to to criteria. to per our first million we the to maintain we disciplined cash activities operating framework, share dividend identify in million meet available We

conditions.With call to turn share program, positioning over back authorized in million I also the for We to have opportunistic repurchases, subject share us market remaining will Jaco. that, $XXX repurchase

Jaco van der Merwe

Heinrich. you, Thank

dynamics, challenging our current of asphalt strong, market plants. remain Slide remain Turning Solutions fundamentals to the and Infrastructure guided summary, In XX. for by led business The moving forward despite favorable demand outlook for strong pillars. continued are strategic Solutions, and we due by new the Infrastructure to our concrete

efficiencies additional half challenging contractors reductions we in in the for of we We cost and As to drive actions we dealers noted have and Solutions as year. trade released this this and Materials World taken conditions and XXXX. earlier, between excited new earlier first at momentum a in pipeline about the of our ConExpo we now products Asphalt/AggX year, significant of innovation XXXX show the number are anticipate

We our we increased by and highway also the sentiment receive. continue are encouraged the positive funding from federal to customers,

our new reduction take Our drive framework happy your with forward.With resilient operating value to us we creation foundation and and model, are cost strategic initiatives efficiency to provide a questions. growth solid and moving that,

Operator

you. Thank

Instructions] [Operator begin your now will session. the Stifel. of first from question-and-answer question the Elliott line comes Stanley We And from

Stanley Elliott

I thinking about of March? would out in progressed? dropped talk if to off just us? quarter end picked were or it you all March did February, report the curious maybe have the track you you're April Can at if maybe mean orders in how did up you all how frame And that then business all for

Jaco van der Merwe

Yes. No, good question, Stanley.

side, So Solutions much obviously, shipments we February. when guys we what our than Materials in came to on the in talked expected you slower

pretty parts the On came we on Infrastructure we year. supply strong from that the pretty the to issues in some gave a the chain QX. for number decent that, we moved the side flip through us mentioned of side. experienced Solutions sales And that of QX That call

morning. in see with what we point an orders got I following of here months. Materials in view, say, on of are, side, From So last couple Solutions the will the an we've quarter. I in April the will actually update that seen this line

that remainder to and order strong seen year. concrete intake plants that the However, We really I for plants. we've for am think the going business the of be very excited asphalt about is

Stanley Elliott

it of kind strong where and plant business guess than revenue. you guessed. like you help we kind would have material to are of about weaker talked probably also the flat what I being the with being frame that now And sounding Maybe single-digit business up

Jaco van der Merwe

we discussed And Yes. reconfirming internally, this a that in time, point we view. are No, Stanley. at that lot

Materials we MS expected, As is side. side, there's and a losses the Solutions, said that of the I the some up believe IS obviously, especially that than potential we on outperform on that what plant can make side, that, lower but the

think important it's business. IS I to up of remember makes our also X/X about

momentum seeing momentum margin the side. dropped bit positive, optimistic margin We're previous Obviously, organization. effect But it rest that for if will the will on pretty a good it we for the from the on continue the also in a of quarter. to see little momentum. have see positive quarter, the So what year. is good I'm And we really

Stanley Elliott

And points are of margins basis or the speaking of you COVID now, type kind you 'XX of mean, about side. to are back margins, maybe figure kind of How I are XXX thinking help for progression guys kind sequentially unpack the on it the full all we MS out where impacted. 'XX, to when of that right because, year was

Jaco van der Merwe

Yes. No, question. good

comes be that case, obviously, And we're on we momentum very available, side. that if was hands. there goods policy into if shift in onetime finished follow. this going the although to at onetime to market including now positioned think in I things And conservative obviously, foresee inventory it don't in back, inventory few We inventory Materials our have bridge, EBITDA we We that we you very couple of And those customers' highlight get to a and will carefully. adjustments. some valuation well look a a items Solutions, there, have continue, there. our we inventory items the watch

And that, to view good on So going obviously, we continue we're watch have that. to Stanley. a

Materials under For the as of do we on said, remainder side, year the I see pressure. volumes the staying the Solutions

rental our about their inventory had that that seen we've after of all machines April, the XX% in here in fleets. dealers into moved Although

purchases. we replenished dealers still momentum. only are moment orders The those are converting In quarter, obviously continue we our our were that on XX% seeing that into The dealers.Parts So happens, will see by those customers the parts. about to not up are see busy. good thing

our lot, team continue it's the for are guys think and that we that know, rest And work the focused you are year. the doing. well teams things on I and of of with as a As momentum me will very the the encouraged are one

Operator

of line Mig the from Baird. from comes question Dobre next Our

Mircea Dobre

okay? Can me Yes. hear you

Jaco van der Merwe

Yes...

Mircea Dobre

I average being million. in that prior When outlook struggle I commentary they $XXX quarters, up honest million. deliver you your To single really we're with with And be of, back the math $XXX than to to the for orders relative looking go here maybe to want the about significantly would need because to $XXX is revenue down for you, were it, next at imply your the less here call flat pretty that QX, X backlog, backlog digits to year. XXXX. million,

what assumption standpoint ramp order down you such think needs to quarters I $XXX are unless So burning here $XXX know, allow the million, XXXX. I'm something to like, to be from is over the million significant happen revenue that the a trying next through in X backlog an exiting to to don't we going here

that? do you So how do how do about you give... of what And think kind production numbers the given planning

Jaco van der Merwe

our I it allows you do lead continuously And to our is manufacturing in our factories. down that investments improving affecting look necessarily mean, at QX. obviously, sales. without if in due Mig, backlog, from go that X.X% only times backlog down Yes, see went to We about

availability product is parts high our of most all-time for at Our a lines.

then Stanley we've encouraged that concrete here asked continue. And indications doesn't the order with backlog, most question, means plants. of when asphalt make intake as and will parts it to that plants mentioned, have that, April that the that are and in I all really seen So for our we we

give models is need that side and couple we a that and an think due There's we that on the on to that will those other volumes. at they new those volume have the feedback around customers that Our displayed we've World get have.The consider work of upside backlogs that that the have that amount thing continuously they positive to Asphalt we believe market. us momentum of highest to products entering the we to are released products I And in of we market. the segments

quarters. felt X now, the with we was reconfirm us for that. next right on it see prudent view But that we to strong yes, So what

Mircea Dobre

reason X% because were clarify XX% prior to something. backlog year. is is your I revenues down only want The the to why QX sequentially down relative

your internal below in expectations. own came QX So

year, As your revenues is you issue because order The keep in obviously relatively relative to your implies ramp order it here what intake backlog flat sequentially that a in production, grow revenues, at is revenues result, theory, significant a even was prior between very the supported in be discrepancy which, unchanged. in to again, by has to for and the them least or orders.

my relative $XXX seeing So we to you're towards call saying X it, the able actually the quarters year? are I you're guess we question about million all that? of rate remaining of can of And you this is plus in sort that as kind think orders quantify think orders to April, of return if a, should run better that

Jaco van der Merwe

mean, strong for Yes. plant plant side I very on No. side. was the as us and I asphalt April said, concrete the

side seen Our pretty quarters. in movement of there movement MS the part encouraging XX% parts out line inventory with dealer was fleet. just in remains the couple was what inventory, MS last we've into standing the rental more for the order strong. The significant less or is us. on intake of

Mig, yes, fair So question. it's mean, I a

comfortable And now, see guys With what are on very you anything if right that. encouraged seen what felt we here we've we will obviously, we in shifts, We with update with April. that.

Mircea Dobre

visibility again, idea in have hopefully you're unfortunately, to My questions systems to here as and curious, last in you've well, second And investing spent we're relative quarter, I'm that. better around going internally and couple you're with sort consistent here margin. the years that yet seeing this of And more execution. of variances people some set going have to is of the

in what a get here more go-forward from map kind done road sort here curious, on of operational of to to your basis? standpoint, even sort I'm of needs So be order a

Jaco van der Merwe

XX.X%. at Yes. you margins, ended No. we look I that mean on QX, the if

Our Materials in We guys year. that the and for optimistic before to we the we XX% Solutions to cost on higher strong. was them Obviously, of side, down. we the feel in range closer inventory pulled that the our we came will have end end of range Actually, Infrastructure side provided under-absorption the in that to that that you XX.X%. the margins book some Solutions

also margin see continued positive We parts business. on development our

XX% So had, teams on to see. I what we things. inventory adjustments and encouraged our working the still the the Mig, during think we margins right the quarter. I'm with were If we just all are take that close

Mircea Dobre

on us what you was note, charge understand can talking this you're about? help inventory that So that

Jaco van der Merwe

No, Yes. couple of we review have obsoletion a during Obviously, our excess aging policy. quarter, the I policies It's goods view. internal can. inventory conservative that from threshold of to write-down. the good. certain see a the move a that of we reached inventory. inventory, that point we positive effect an sellable And quality had very And inventory and units we we is It's in will the still take the Obviously, that that when margins in finished future.

evaluating are this. We

the for of that quarters. next on visibility good pretty have couple We

on continue at it apply our got as the an moment. So we've we'll And in eye we'll policy here that. to keep obviously, place

Mircea Dobre

that used or Is inventory equipment? equipment new

Jaco van der Merwe

the from it's big difference the No, And No. not. that's No. past.

is remember move issue. new that ago, their will dealers used inventory. we'll the there able fleets, very that inventory as we this a I think you of guys was No, be inventory of a feel And to big sell comfortable out inventory. couple years

Mircea Dobre

I'm by have been sorry, equipment one last question puzzled I'm a anything, if this here. because up. bit going little prices

especially talking a equipment it So write-down, why about not that requires we're this if inventory? used is

Jaco van der Merwe

policy. we're question. continuously Obviously, reviewing again, with in the that place a applying ago. years put our good these And of a conservative internal here are No, Yes. policy we couple together team audit once policies that It's team.

So definitely conservative, Mig.

Operator

Stephen from [Operator Ferazani the line Instructions] Sidoti. next Our from comes of question

Steve Ferazani

into call. construction challenges you given orders on up. chain those picking ran you're as ask wanted in QX. widen on would projects the in strength detail seem X like noted, over the the you the And Appreciate seem, and quarters. spending might I supply seeing the next X to It Infrastructure challenges about underway. would Solutions It highway or the

a quarterly So to have what to those visibility anything basis? I'm that? do? challenges on Is impacting do prevent you can you results about, And can there to from think trying do you your

Jaco van der Merwe

We Steve. do design. basically is This asphalt that absolutely, that. a components plants. No, electronic into specific something goes about Yes. pretty complex our a can It's

plant. control past. is If in look operates asphalt at an that house that we you And with single that the whole were sourced one typically area the

cycle found there and going an We have Unfortunately, we're is cycle through now. that suppliers. verification engineering right design alternative

on alternative have now line we approved. So the is suppliers that

next quarters, additional view. the supplier a we have point will of options over So couple from base of

tight. So it will be

able There QX delivered to that year, the out backlog some we QX year. QX, for see deliver Some of feel make that is that where ship. we this commitments to items within move and should potential be of the customers orders will on those of and we in the the from what orders we have that to will moved still a risk we QX. to But be

Steve Ferazani

just to concerned? on item challenges, could supply and clear, be on in not the your you're XQ, the now into but So specific electronics else you're side. to seeing right persist that chain very somewhat not expectation it's it a anything

Jaco van der Merwe

has corrective work to No. just But explore there's that during that us from future. X where now a time us alternatives is this or no engineering done have very time. issue X the the alternatives our always have components I teams will bugging quarter. say mean, And our we action is and I in the to specific given

Steve Ferazani

had quarter. a thinking how And with to went this Okay. know is QX you whether receivables certain on into a conversion compared year? reversible Appreciate is cash this about some quarter, you how issues ran of specific that's is good and typically up this How that your customers? to Materials Solutions obviously, cash I I challenges you're It that. on bit never conversion negative look, concerned EPS. When quarter, much

Jaco van der Merwe

Yes.

me can Let a first on elaborate. and then step maybe that take Heinrich

sales, remember, million. any up that's receivables XX reason parts, for on know receivables don't pay terms in have a up. range went have being strong and One our Heinrich, of $XX customers biggest if typically On is capital typically right, days the we that the You're delivery. QX additional thing view to I part this. equipment, going Steve, But that on obviously, on is you

Heinrich Jonker

here. to similar mentioned No, what Jaco I think it's

in side think, little We specifically related Jaco a the the areas here do part on have receivables your sales I those terms during More we think I the QX. of bit to on within question of inventory that part that to sales. the a side, conversion to focus, lot cash we stronger the business. cycle, had continue specifically mentioned

insurance On improve share equipment we during from side, sales shipment we that that we being on that balance at number the no estimable take The QX then payments impact criteria that. the have item. side that probable, receivables will clearly well. also, There a collect basically in continue which on item. a a as liability. It's fully P&L the the to that and receivable was carrier equipment created is sheet and the to of phase. And were forward. we reached on and a class And also as yes, going within It's lower suits equipment full

not long-term in be for receivables. item it will us So a

Jaco van der Merwe

low receivables. risk the see We Steve, just very to good receivables. of a also, confirm very in aging we feel that quality about

Steve Ferazani

I are one see more as you benefits last as comments the margin get implementation? Okay. If see pretty on 'XX to on on these year the questions. expecting based you've more sound efficiency Are well plant to from any last to the benefits confident you your margin you starting from efforts helpful. over in, ERP undertaken That's

Jaco van der Merwe

Yes.

of an structured. fully are from our say, now, view, I OpEx teams So and will CapEx point

it's those bit on say been a in expect little teams now implementation. the for of operation future. Some year I up early fully a show the the We have to the benefits article will plus. in of

teams that phase believe step now the in need. starting that went in are Although that we have we our next we the the the to investments identify plants we first,

article the have implementation finished. We

margins for is pretty drive opportunity good. to there the us So

with see So that's more, about I feel end of talking we why we for comfortable and range think will this year. upper the the

Operator

of Our next from line Sponheimer Brian Funds. Gabelli question comes the from

Brian Sponheimer

as pricing I talk you get either challenge broader the you what something you're some we forward into environment larger this and to from just wanted to that go for that an pricing and seeing a perhaps competitive providers the relative niche or the whether about opportunity competitors to and that's there's want? year, of

Jaco van der Merwe

giving subsidies plans, No, are by quite from larger in arrangements. one is good say will rates array for specifically floor players terms the interest floor a of we seeing in interest months wide I the plan question. thing market. XX, competitors and of the Obviously, we XX have X

to which little more of that, us back pre-COVID a takes seeing definitely we're era. So the bit

those in We business. reflected the of in some side Solutions well, is had we've cases. of of have some as that obviously, the responded And results that especially on the Materials

much that wanted. also close a know come keeping very pricing. eye has inflation the are down on you Fed's as not But as guys We

as taking start I'm doing other foreseeable we we we're data for going us see pricing we good procurement and and Astec pricing the So I items fairly think And think thinking really now line. for that us into some think are of product One into is trend I about for even a that sell excited and forward, are we sell, lines to to that going stable analytics action year.The our XXXX, job already with is next side our team the really future.

with have today type time price on seen we in things. those suppliers, better copper, what I've my steel, lines visibility of trend So increases Astec around than from

managing So much quarters. proactive definitely way we've what more it in done we're in historical than a

Brian Sponheimer

Great. right. beyond. and best for wishes And quarter second better All

Operator

this time. And there for hand the further the to I would closing Anderson Steve questions queue in remarks. back no are at to call like

Stephen C. Anderson

]. conference for Dee [ in you, interest Thank your your on appreciate participation our We thank and you call, Astec.

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

the contained news this of All information release morning. in we distributed is that

call, you said, So have connect I'm concludes any happy with this of Have as if day. all. to you on. we our good a you Thank and later questions

Operator

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

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

Astec Industries (ASTE) 1 May 242024 Q1 Earnings call transcript