Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the second quarter of 2023.
"Our execution with a focus on creating
stability and profitability was effective as we achieved sales
growth and margin expansion in the second quarter compared to the
same quarter in 2022," said Jaco van der Merwe, Chief Executive
Officer. "I commend our employees for their dedication and hard
work. Consistent with our first quarter results, we realized prior
pricing actions to offset inflation. Backlog trended downward in
the quarter supported by fulfilling parts orders more efficiently,
experiencing fewer supply chain disruptions and driving
manufacturing lead times. Our ERP implementation continues to be on
schedule and on budget as we transform how we connect people,
products and processes to operate more efficiently as OneASTEC. We
have now integrated our first manufacturing site and corporate in
addition to our human capital management modules. We are encouraged
by our results as we execute our strategic initiatives. Our strong
balance sheet and the multi-year federal highway bill are expected
to continue to provide stability as we grow."
|
|
GAAP |
|
Adjusted |
(in millions, except per share and percentage
data) |
|
2Q 2023 |
|
2Q 2022 |
|
Change |
|
2Q 2023 |
|
2Q 2022 |
|
Change |
Net sales |
|
$ |
350.0 |
|
|
$ |
318.2 |
|
|
10.0 |
% |
|
|
|
|
|
|
Domestic sales |
|
|
286.4 |
|
|
|
248.4 |
|
|
15.3 |
% |
|
|
|
|
|
|
International sales |
|
|
63.6 |
|
|
|
69.8 |
|
|
(8.9 |
)% |
|
|
|
|
|
|
Backlog |
|
|
688.8 |
|
|
|
837.4 |
|
|
(17.7 |
)% |
|
|
|
|
|
|
Domestic backlog |
|
|
588.2 |
|
|
|
705.1 |
|
|
(16.6 |
)% |
|
|
|
|
|
|
International backlog |
|
|
100.6 |
|
|
|
132.3 |
|
|
(24.0 |
)% |
|
|
|
|
|
|
Income from operations (a) |
|
|
17.3 |
|
|
|
(1.7 |
) |
|
1117.6 |
% |
|
26.2 |
|
|
8.9 |
|
|
194.4 |
% |
Operating margin (a) |
|
|
4.9 |
% |
|
(0.5 |
)% |
|
540 bps |
|
7.5 |
% |
|
2.8 |
% |
|
470 bps |
Effective tax rate |
|
|
17.0 |
% |
|
|
17.0 |
% |
|
— bps |
|
19.4 |
% |
|
27.1 |
% |
|
(770 bps) |
Net income (loss) attributable to controlling interest |
|
|
13.1 |
|
|
|
(3.9 |
) |
|
435.9 |
% |
|
19.9 |
|
|
4.3 |
|
|
362.8 |
% |
Diluted EPS |
|
|
0.58 |
|
|
|
(0.17 |
) |
|
441.2 |
% |
|
0.87 |
|
|
0.19 |
|
|
357.9 |
% |
Adjusted EBITDA |
|
|
|
|
|
|
|
32.2 |
|
|
13.2 |
|
|
143.9 |
% |
Adjusted EBITDA margin |
|
|
|
|
|
|
|
9.2 |
% |
|
4.1 |
% |
|
510 bps |
(a) Certain reclassifications have been made to the prior period
financial information to conform to the presentation used in the
financial statements for the three months ended June 30, 2023. |
|
- Net sales were driven by favorable net changes in volume,
pricing and mix that generated increases in service and equipment
installation, equipment sales, parts and component sales and used
equipment partially offset by freight and other revenue. Demand was
strong domestically while international sales declined. Sales
reported by our foreign subsidiaries in U.S. dollars for the second
quarter of 2023 would have been $3.5 million higher had second
quarter 2023 foreign exchange rates been the same as second quarter
2022 rates.
- Our backlog continues to be elevated, while decreasing from
historically high levels in 2022. Sales delivery outpaced new
orders. We expect backlog to continue to normalize as customer
order patterns adjust to the current environment of diminished
supply chain constraints that caused prior manufacturing throughput
disruptions. Additionally, we are focused on prudent expansion of
our production capacity. We anticipate this will allow us to
convert backlog more quickly to sales in the future.
- Operating income increased as favorable net volume, pricing and
mix of sales outpaced inflation, manufacturing inefficiencies,
increased selling, general and administrative expenses and
restructuring charges. Selling, general and administrative expenses
were lower as a percentage of sales.
- Adjusted net income and Adjusted EPS exclude $6.8 million and
$0.29, respectively, of incremental costs, net of tax, primarily
driven by our transformation program initiatives to optimize our
company for long term value creation.
Segments Results
Infrastructure Solutions –
Road building equipment, asphalt and concrete plants, thermal
storage solutions.
- Net sales of $218.1 million
increased 4.1% due to favorable net volume, pricing and mix of
sales that generated increased service and equipment installation
revenue, parts and component sales and used equipment sales. These
increases were partially offset by seasonally lower new equipment
sales and freight revenue.
- Segment Operating Adjusted EBITDA
of $26.7 million increased 67.9% primarily due to gross margin
impacts for net positive volume, pricing and mix. Segment Operating
Adjusted EBITDA margin of 12.2% increased 460 basis points.
Materials Solutions –
Processing equipment to crush, screen and convey aggregates.
- Net sales of $130.2 million
increased 21.2% due to favorable net volume, pricing and mix of
sales. The increase was driven by higher new equipment sales and
parts and component sales, partially offset by the increased
utilization of our interest subsidy programs offered to certain of
our dealer customers.
- Segment Operating Adjusted EBITDA
of $18.3 million increased 92.6% due to increased net volume,
pricing and mix of sales and foreign currency translation losses in
2022 that did not recur in 2023. The increase was partially offset
by higher inflation on materials, labor and overhead costs and
manufacturing inefficiencies. Segment Operating Adjusted EBITDA
margin of 14.1% increased 530 basis points.
Balance Sheet, Cash Flow and
Liquidity
- We ended the quarter with balance
sheet cash of $44.5 million, a 12.1% decrease from June 30,
2022.
- Net cash used in operating
activities for the six months ended June 30, 2023 was $2.5 million
as we carried additional inventories on hand to satisfy customer
demand for our products.
- Net cash provided by investing
activities for the six months ended June 30, 2023 was $2.6 million
due to the net proceeds from the sale and purchase of property and
equipment.
- Net cash consumed by financing
activities for the six months ended June 30, 2023 was $22.0 million
primarily due to higher net repayments on our outstanding debt
obligations and funding the dividend payment.
Second Quarter Capital
Allocation
- Capital expenditure investments to
increase capacity and improve efficiency were $9.1 million.
- Dividend payment of $0.13 per
share.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, August 2, 2023, at 8:30 A.M. Eastern Time, to
review its second quarter financial results as well as current
business conditions.
To access the call, dial (888) 440-4118 on
Wednesday, August 2, 2023 at least 10 minutes prior to the
scheduled time for the call. International callers should dial
(646) 960-0833.
You may also access a live webcast of the call at:
https://events.q4inc.com/attendee/312063797.
You will need to give your name and company
affiliation and reference Astec. An archived webcast will be
available for ninety days at www.astecindustries.com.
A replay of the call can be accessed until
August 16, 2023 by dialing (800) 770-2030, or (647) 362-9199 for
international callers, Conference ID# 8741406. A transcript of the
conference call will be made available under the Investor Relations
section of the Astec Industries, Inc. website within 5 business
days after the call.
About Astec
Astec, (www.astecindustries.com), is a
manufacturer of specialized equipment for asphalt road building,
aggregate processing and concrete production. Astec's
manufacturing operations are divided into two primary business
segments: Infrastructure Solutions that includes road building,
asphalt and concrete plants, thermal and storage solutions; and
Materials Solutions that include our aggregate processing
equipment. Astec also operates a line of controls and automation
products designed to deliver enhanced productivity through improved
equipment performance.
Safe Harbor Statements under the Private
Securities Litigation Reform Act of 1995
This News Release contains forward-looking
statements within the meaning of the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, and the
Private Securities Litigation Reform Act of 1995. Such statements
relate to, among other things, income, earnings, cash flows,
changes in operations, operating improvements, businesses in which
we operate and the United States and global economies. Statements
in this News Release that are not historical are hereby identified
as "forward-looking statements" and may be indicated by words or
phrases such as "anticipates," "supports," "plans," "projects,"
"expects," "believes," "should," "would," "could," "forecast,"
"management is of the opinion," use of the future tense and similar
words or phrases. These forward-looking statements are based
largely on management's expectations, which are subject to a number
of known and unknown risks, uncertainties and other factors
discussed and described in our most recent Annual Report on Form
10-K, including those risks described in Part I, Item 1A. Risk
Factors thereof, and in other reports filed
subsequently by us with the Securities and Exchange Commission,
which may cause actual results, financial or otherwise, to be
materially different from those anticipated, expressed or implied
by the forward-looking statements. All forward-looking statements
included in this document are based on information available to us
on the date hereof, and we assume no obligation to update any such
forward-looking statements to reflect future events or
circumstances, except as required by law.
Non-GAAP Financial Measures
In an effort to provide investors with
additional information regarding the Company's results, the Company
refers to various U.S. GAAP (U.S. generally accepted accounting
principles) and non-GAAP financial measures which management
believes provides useful information to investors. These non-GAAP
financial measures have no standardized meaning prescribed by U.S.
GAAP and therefore may not be comparable to the calculation of
similar measures for other companies. Management of the Company
does not intend these items to be considered in isolation or as a
substitute for the related GAAP measures. Nonetheless, this
non-GAAP information can be useful in understanding the Company's
operating results and the performance of its core business.
Management of the Company uses both GAAP and non-GAAP financial
measures to establish internal budgets and targets and to evaluate
the Company's financial performance against such budgets and
targets. A reconciliation of these non-GAAP measures to the most
directly comparable GAAP measure is included in this News
Release.
For Additional Information
Contact: Steve Anderson Senior Vice President of
Administration and Investor RelationsPhone: (423)
899-5898 E-mail: sanderson@astecindustries.com
Certain reclassifications have been made to the
prior period financial information included in this News Release to
conform to the presentation used in the financial statements for
the three and six months ended June 30, 2023.
|
Astec Industries Inc. |
Condensed Consolidated Statements of
Operations |
(In millions, except shares in thousands and per share
amounts; unaudited) |
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net sales |
|
$ |
350.0 |
|
|
$ |
318.2 |
|
|
$ |
697.9 |
|
|
$ |
609.4 |
|
Cost of sales |
|
|
267.1 |
|
|
|
255.3 |
|
|
|
525.8 |
|
|
|
481.8 |
|
Gross profit |
|
|
82.9 |
|
|
|
62.9 |
|
|
|
172.1 |
|
|
|
127.6 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
64.5 |
|
|
|
61.2 |
|
|
|
132.4 |
|
|
|
120.9 |
|
Restructuring, impairment and other asset charges, net |
|
|
1.1 |
|
|
|
3.4 |
|
|
|
4.8 |
|
|
|
4.4 |
|
Total operating expenses |
|
|
65.6 |
|
|
|
64.6 |
|
|
|
137.2 |
|
|
|
125.3 |
|
Income (loss) from operations |
|
|
17.3 |
|
|
|
(1.7 |
) |
|
|
34.9 |
|
|
|
2.3 |
|
|
|
|
|
|
|
|
|
|
Other expenses, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(2.0 |
) |
|
|
(0.6 |
) |
|
|
(4.0 |
) |
|
|
(1.0 |
) |
Other income (expenses), net |
|
|
0.6 |
|
|
|
(2.4 |
) |
|
|
1.5 |
|
|
|
(1.0 |
) |
Income (loss) before income taxes |
|
|
15.9 |
|
|
|
(4.7 |
) |
|
|
32.4 |
|
|
|
0.3 |
|
Income tax provision (benefit) |
|
|
2.7 |
|
|
|
(0.8 |
) |
|
|
7.1 |
|
|
|
0.1 |
|
Net income (loss) |
|
|
13.2 |
|
|
|
(3.9 |
) |
|
|
25.3 |
|
|
|
0.2 |
|
Net income attributable to noncontrolling interest |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
— |
|
Net income (loss) attributable to controlling interest |
|
$ |
13.1 |
|
|
$ |
(3.9 |
) |
|
$ |
25.2 |
|
|
$ |
0.2 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.58 |
|
|
$ |
(0.17 |
) |
|
$ |
1.11 |
|
|
$ |
0.01 |
|
Diluted |
|
|
0.58 |
|
|
|
(0.17 |
) |
|
|
1.11 |
|
|
|
0.01 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
22,724 |
|
|
|
22,851 |
|
|
|
22,690 |
|
|
|
22,817 |
|
Diluted |
|
|
22,769 |
|
|
|
22,851 |
|
|
|
22,772 |
|
|
|
22,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc. |
Segment Net Sales and Operating Adjusted
EBITDA |
(In millions; unaudited) |
|
Segment net sales are reported net of intersegment sales. |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
InfrastructureSolutions |
|
MaterialsSolutions |
|
Corporateand Other |
|
Total |
|
InfrastructureSolutions |
|
MaterialsSolutions |
|
Corporateand Other |
|
Total |
2023 Net sales |
$ |
218.1 |
|
|
$ |
130.2 |
|
|
$ |
1.7 |
|
|
$ |
350.0 |
|
|
$ |
448.0 |
|
|
$ |
244.1 |
|
|
$ |
5.8 |
|
|
$ |
697.9 |
|
2022 Net sales |
|
209.6 |
|
|
|
107.4 |
|
|
|
1.2 |
|
|
|
318.2 |
|
|
|
407.1 |
|
|
|
201.1 |
|
|
|
1.2 |
|
|
|
609.4 |
|
Change $ |
|
8.5 |
|
|
|
22.8 |
|
|
|
0.5 |
|
|
|
31.8 |
|
|
|
40.9 |
|
|
|
43.0 |
|
|
|
4.6 |
|
|
|
88.5 |
|
Change % |
|
4.1 |
% |
|
|
21.2 |
% |
|
|
41.7 |
% |
|
|
10.0 |
% |
|
|
10.0 |
% |
|
|
21.4 |
% |
|
|
383.3 |
% |
|
|
14.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Segment Operating Adjusted EBITDA |
|
26.7 |
|
|
|
18.3 |
|
|
|
(12.3 |
) |
|
|
32.7 |
|
|
|
54.0 |
|
|
|
33.6 |
|
|
|
(19.1 |
) |
|
|
68.5 |
|
2022 Segment Operating Adjusted EBITDA |
|
15.9 |
|
|
|
9.5 |
|
|
|
(12.3 |
) |
|
|
13.1 |
|
|
|
32.3 |
|
|
|
21.7 |
|
|
|
(22.1 |
) |
|
|
31.9 |
|
Change $ |
|
10.8 |
|
|
|
8.8 |
|
|
|
— |
|
|
|
19.6 |
|
|
|
21.7 |
|
|
|
11.9 |
|
|
|
3.0 |
|
|
|
36.6 |
|
Change % |
|
67.9 |
% |
|
|
92.6 |
% |
|
|
— |
% |
|
|
149.6 |
% |
|
|
67.2 |
% |
|
|
54.8 |
% |
|
|
13.6 |
% |
|
|
114.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2023 Segment Operating Adjusted EBITDA Margin |
|
12.2 |
% |
|
|
14.1 |
% |
|
|
|
|
|
|
12.1 |
% |
|
|
13.8 |
% |
|
|
|
|
2022 Segment Operating Adjusted EBITDA Margin |
|
7.6 |
% |
|
|
8.8 |
% |
|
|
|
|
|
|
7.9 |
% |
|
|
10.8 |
% |
|
|
|
|
Change bps |
460 bps |
|
530 bps |
|
|
|
|
|
420 bps |
|
300 bps |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We present certain non-GAAP information that can
be useful in understanding our operating results and the
performance of our core business. We use both GAAP and non-GAAP
financial measures to establish internal budgets and targets and to
evaluate financial performance against such budgets and targets. We
exclude the costs and related tax effects of the following items as
we do not believe they are indicative of our core business
operations:
- Transformation program –
Incremental costs related to the execution of our ongoing strategic
transformation initiatives which may include personnel costs,
third-party consultant costs, duplicative systems usage fees,
administrative costs, accelerated depreciation and amortization on
certain long-lived assets and other similar type charges.
Transformation program initiatives includes our multi-year phased
implementation of a standardized enterprise resource planning
system across the global organization and a lean manufacturing
initiative at one of our largest manufacturing sites. These costs
are included in "Cost of sales" and "Selling, general and
administrative expenses", as appropriate, in the Consolidated
Statements of Operations.
- Restructuring and other related
charges – Charges related to restructuring activities which
primarily include personnel termination actions and reorganization
efforts to simplify and consolidate our operations. These
activities include the termination of our previous CEO, the limited
overhead restructuring action implemented in February 2023, the
closing of our Tacoma location in Q1 2022 and ongoing litigation
costs for our exited Enid location. These costs are recorded in
"Restructuring, impairment and other asset charges, net" in the
Consolidated Statements of Operations.
- Asset impairment – Asset
impairment charges, to the extent that they are experienced, are
recorded in "Restructuring, impairment and other asset charges,
net" in the Consolidated Statements of Operations. These include
charges associated with abandoned in-process internally developed
software that was determined to be impaired in both Q2 2023 and
2022. Additional charges in 2022 relate to the determination that
prepaid charges related to certain manufacturing equipment
contracted to be constructed by a third-party vendor would not be
recovered.
- Gain (loss) on sale of property and
equipment, net – Gains or losses recognized on the disposal of
property and equipment that are recorded in "Restructuring,
impairment and other asset charges, net" in the Consolidated
Statements of Operations. We may sell or dispose of assets in the
normal course of our business operations as they are no longer
needed or used.
- Transaction costs –
Transaction costs associated with the acquisition or integration of
acquired businesses. These costs are typically included in
"Selling, general and administrative expenses" in the Consolidated
Statements of Operations. Transaction costs primarily relate to the
acquisition and integration costs associated with the acquisition
of MINDS Automation Group, Inc. that was completed on April 1,
2022.
A reconciliation of total Segment Operating
Adjusted EBITDA to the Company's "Net income (loss) attributable to
controlling interest" is as follows (in millions; unaudited):
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
Change $ |
|
|
2023 |
|
|
|
2022 |
|
|
Change $ |
Segment Operating Adjusted EBITDA |
$ |
32.7 |
|
|
$ |
13.1 |
|
|
$ |
19.6 |
|
|
$ |
68.5 |
|
|
$ |
31.9 |
|
|
$ |
36.6 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
Transformation program |
|
(7.6 |
) |
|
|
(6.4 |
) |
|
|
(1.2 |
) |
|
|
(14.8 |
) |
|
|
(11.7 |
) |
|
|
(3.1 |
) |
Restructuring and other related charges |
|
(0.4 |
) |
|
|
(0.4 |
) |
|
|
— |
|
|
|
(7.5 |
) |
|
|
(1.4 |
) |
|
|
(6.1 |
) |
Asset impairment |
|
(0.8 |
) |
|
|
(3.0 |
) |
|
|
2.2 |
|
|
|
(0.8 |
) |
|
|
(3.0 |
) |
|
|
2.2 |
|
Gain on sale of property and equipment, net |
|
0.1 |
|
|
|
— |
|
|
|
0.1 |
|
|
|
3.5 |
|
|
|
— |
|
|
|
3.5 |
|
Transaction costs |
|
— |
|
|
|
(0.8 |
) |
|
|
0.8 |
|
|
|
— |
|
|
|
(1.4 |
) |
|
|
1.4 |
|
Interest expense, net |
|
(1.5 |
) |
|
|
(0.4 |
) |
|
|
(1.1 |
) |
|
|
(3.0 |
) |
|
|
(0.6 |
) |
|
|
(2.4 |
) |
Depreciation and amortization |
|
(6.2 |
) |
|
|
(6.9 |
) |
|
|
0.7 |
|
|
|
(12.5 |
) |
|
|
(13.6 |
) |
|
|
1.1 |
|
Income tax (provision) benefit |
|
(2.7 |
) |
|
|
0.8 |
|
|
|
(3.5 |
) |
|
|
(7.1 |
) |
|
|
(0.1 |
) |
|
|
(7.0 |
) |
(Elimination) recapture of intercompany profit |
|
(0.4 |
) |
|
|
0.1 |
|
|
|
(0.5 |
) |
|
|
(1.0 |
) |
|
|
0.1 |
|
|
|
(1.1 |
) |
Net income attributable to noncontrolling interest |
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
— |
|
|
|
(0.1 |
) |
Net income (loss) attributable to controlling interest |
$ |
13.1 |
|
|
$ |
(3.9 |
) |
|
$ |
17.0 |
|
|
$ |
25.2 |
|
|
$ |
0.2 |
|
|
$ |
25.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Astec Industries Inc. |
Condensed Consolidated Balance Sheets |
(In millions; unaudited) |
|
|
June 30, 2023 |
|
December 31, 2022 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and restricted cash |
$ |
44.5 |
|
$ |
66.0 |
Investments |
|
4.0 |
|
|
3.9 |
Trade receivables and contract assets, net |
|
157.6 |
|
|
167.1 |
Inventories, net |
|
429.5 |
|
|
393.4 |
Other current assets, net |
|
40.3 |
|
|
66.0 |
Total current assets |
|
675.9 |
|
|
696.4 |
Property, plant and equipment, net |
|
180.4 |
|
|
173.6 |
Other long-term assets |
|
154.1 |
|
|
144.4 |
Total assets |
$ |
1,010.4 |
|
$ |
1,014.4 |
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
109.2 |
|
$ |
107.2 |
Customer deposits |
|
57.7 |
|
|
69.5 |
Other current liabilities |
|
97.2 |
|
|
97.3 |
Total current liabilities |
|
264.1 |
|
|
274.0 |
Long-term debt |
|
62.0 |
|
|
78.1 |
Other long-term liabilities |
|
36.8 |
|
|
35.4 |
Total equity |
|
647.5 |
|
|
626.9 |
Total liabilities and equity |
$ |
1,010.4 |
|
$ |
1,014.4 |
|
Astec Industries Inc. |
Condensed Consolidated Statements of Cash
Flows |
(In millions; unaudited) |
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
Net income |
$ |
25.3 |
|
|
$ |
0.2 |
|
Adjustments to reconcile net income to net cash used in operating
activities: |
|
|
|
Depreciation and amortization |
|
12.5 |
|
|
|
13.6 |
|
Provision for credit losses |
|
0.2 |
|
|
|
0.2 |
|
Provision for warranties |
|
10.6 |
|
|
|
6.4 |
|
Deferred compensation expense (benefit) |
|
0.1 |
|
|
|
(0.9 |
) |
Share-based compensation |
|
2.2 |
|
|
|
3.4 |
|
Deferred tax benefit |
|
(4.7 |
) |
|
|
(8.0 |
) |
Gain on disposition of property and equipment, net |
|
(3.5 |
) |
|
|
— |
|
Asset impairment charges, net |
|
0.8 |
|
|
|
3.0 |
|
Amortization of debt issuance costs |
|
0.2 |
|
|
|
— |
|
Distributions to deferred compensation programs' participants |
|
(0.4 |
) |
|
|
(0.4 |
) |
Change in operating assets and liabilities: |
|
|
|
Purchase of trading securities, net |
|
(1.1 |
) |
|
|
(0.5 |
) |
Receivables and other contract assets |
|
9.7 |
|
|
|
(21.5 |
) |
Inventories |
|
(37.2 |
) |
|
|
(71.5 |
) |
Prepaid expenses |
|
5.7 |
|
|
|
(3.8 |
) |
Other assets |
|
(8.3 |
) |
|
|
(4.8 |
) |
Accounts payable |
|
1.3 |
|
|
|
22.7 |
|
Accrued loss reserves |
|
0.6 |
|
|
|
0.5 |
|
Accrued employee related liabilities |
|
1.6 |
|
|
|
6.1 |
|
Other accrued liabilities |
|
(7.4 |
) |
|
|
2.6 |
|
Accrued product warranty |
|
(6.0 |
) |
|
|
(5.2 |
) |
Customer deposits |
|
(11.4 |
) |
|
|
14.2 |
|
Income taxes payable/prepaid |
|
6.7 |
|
|
|
1.8 |
|
Net cash used in operating activities |
|
(2.5 |
) |
|
|
(41.9 |
) |
Cash flows from investing activities: |
|
|
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
(17.8 |
) |
Expenditures for property and equipment |
|
(17.1 |
) |
|
|
(18.8 |
) |
Proceeds from sale of property and equipment |
|
20.1 |
|
|
|
0.2 |
|
Purchase of investments |
|
(0.5 |
) |
|
|
(0.6 |
) |
Sale of investments |
|
0.1 |
|
|
|
0.1 |
|
Net cash provided by (used in) investing activities |
|
2.6 |
|
|
|
(36.9 |
) |
|
(Continued) |
|
Astec Industries Inc. |
Condensed Consolidated Statements of Cash Flows
(Continued) |
(In millions; unaudited) |
|
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
Cash flows from financing activities: |
|
|
|
Payment of dividends |
|
(5.9 |
) |
|
|
(5.5 |
) |
Proceeds from borrowings on credit facilities and bank loans |
|
113.6 |
|
|
|
28.5 |
|
Repayments of borrowings on credit facilities and bank loans |
|
(128.1 |
) |
|
|
(25.3 |
) |
Sale of Company stock by deferred compensation programs, net |
|
— |
|
|
|
0.2 |
|
Withholding tax paid upon vesting of share-based compensation
awards |
|
(1.6 |
) |
|
|
(1.6 |
) |
Net cash used in financing activities |
|
(22.0 |
) |
|
|
(3.7 |
) |
Effect of exchange rates on cash |
|
0.4 |
|
|
|
(1.3 |
) |
Decrease in cash, cash equivalents and restricted cash |
|
(21.5 |
) |
|
|
(83.8 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
66.0 |
|
|
|
134.4 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
44.5 |
|
|
$ |
50.6 |
|
|
Astec Industries Inc. |
GAAP vs Non-GAAP Adjusted EPS Reconciliations |
(In millions, except per share amounts;
unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income (loss) attributable to controlling interest |
$ |
13.1 |
|
|
$ |
(3.9 |
) |
|
$ |
25.2 |
|
|
$ |
0.2 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
7.8 |
|
|
|
6.4 |
|
|
|
15.0 |
|
|
|
11.7 |
|
Restructuring and other related charges |
|
0.4 |
|
|
|
0.4 |
|
|
|
7.5 |
|
|
|
1.4 |
|
Asset impairment |
|
0.8 |
|
|
|
3.0 |
|
|
|
0.8 |
|
|
|
3.0 |
|
Gain on sale of property and equipment, net |
|
(0.1 |
) |
|
|
— |
|
|
|
(3.5 |
) |
|
|
— |
|
Transaction costs |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
1.4 |
|
Income tax impact of adjustments |
|
(2.1 |
) |
|
|
(2.4 |
) |
|
|
(4.6 |
) |
|
|
(4.0 |
) |
Adjusted net income attributable to controlling interest |
$ |
19.9 |
|
|
$ |
4.3 |
|
|
$ |
40.4 |
|
|
$ |
13.7 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.58 |
|
|
$ |
(0.17 |
) |
|
$ |
1.11 |
|
|
$ |
0.01 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
0.34 |
|
|
|
0.28 |
|
|
|
0.66 |
|
|
|
0.51 |
|
Restructuring and other related charges(a) |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.32 |
|
|
|
0.06 |
|
Asset impairment(a) |
|
0.03 |
|
|
|
0.13 |
|
|
|
0.03 |
|
|
|
0.13 |
|
Gain on sale of property and equipment, net |
|
— |
|
|
|
— |
|
|
|
(0.15 |
) |
|
|
— |
|
Transaction costs |
|
— |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.06 |
|
Income tax impact of adjustments |
|
(0.09 |
) |
|
|
(0.11 |
) |
|
|
(0.20 |
) |
|
|
(0.17 |
) |
Adjusted EPS |
$ |
0.87 |
|
|
$ |
0.19 |
|
|
$ |
1.77 |
|
|
$ |
0.60 |
|
|
|
|
|
|
|
|
|
(a) Calculation includes the impact of a rounding adjustment |
|
Astec Industries Inc. |
EBITDA and Adjusted EBITDA Reconciliations |
(In millions; unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net sales |
$ |
350.0 |
|
|
$ |
318.2 |
|
|
$ |
697.9 |
|
|
$ |
609.4 |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to controlling interest |
$ |
13.1 |
|
|
$ |
(3.9 |
) |
|
$ |
25.2 |
|
|
$ |
0.2 |
|
Interest expense, net |
|
1.5 |
|
|
|
0.4 |
|
|
|
3.0 |
|
|
|
0.6 |
|
Depreciation and amortization |
|
6.2 |
|
|
|
6.9 |
|
|
|
12.5 |
|
|
|
13.6 |
|
Income tax provision (benefit) |
|
2.7 |
|
|
|
(0.8 |
) |
|
|
7.1 |
|
|
|
0.1 |
|
EBITDA |
|
23.5 |
|
|
|
2.6 |
|
|
|
47.8 |
|
|
|
14.5 |
|
EBITDA margin |
|
6.7 |
% |
|
|
0.8 |
% |
|
|
6.8 |
% |
|
|
2.4 |
% |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
7.6 |
|
|
|
6.4 |
|
|
|
14.8 |
|
|
|
11.7 |
|
Restructuring and other related charges |
|
0.4 |
|
|
|
0.4 |
|
|
|
7.5 |
|
|
|
1.4 |
|
Asset impairment |
|
0.8 |
|
|
|
3.0 |
|
|
|
0.8 |
|
|
|
3.0 |
|
Gain on sale of property and equipment, net |
|
(0.1 |
) |
|
|
— |
|
|
|
(3.5 |
) |
|
|
— |
|
Transaction costs |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
1.4 |
|
Adjusted EBITDA |
$ |
32.2 |
|
|
$ |
13.2 |
|
|
$ |
67.4 |
|
|
$ |
32.0 |
|
Adjusted EBITDA margin |
|
9.2 |
% |
|
|
4.1 |
% |
|
|
9.7 |
% |
|
|
5.3 |
% |
Astec Industries (NASDAQ:ASTE)
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