EX-99.1 2 pressrelease.htm

Exhibit 99.1 

ASTEC INDUSTRIES, INC. REPORTS SECOND QUARTER 2006 RESULTS

 

CHATTANOOGA, Tenn. (July 24, 2006) - Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the quarter and six months ended June 30, 2006.

Net income for the second quarter of 2006 was $12.4 million compared with net income of $10.2 million for the second quarter of 2005 for a 21.0% increase. Earnings per diluted share for the second quarter of 2006 was $0.56 compared to $0.49 per diluted share for the second quarter of 2005.

Net sales for the quarter ended June 30, 2006 were $191.3 million compared to $170.8 million for the quarter ended June 30, 2005 for an increase of 12.0%. International sales for the second quarter of 2006 were 28.0% of net sales versus 19.4% for the same period in 2005.

Net sales for the six months ended June 30, 2006 were $377.0 million compared to $332.4 million for the six months ended June 30, 2005, for an increase of 13.4%. International sales for the six months ended June 30, 2006 were 23.4% of net sales versus 18.5% for the same period in 2005. Net income for the six months ended June 30, 2006 was $23.3 million compared with net income of $17.0 million for the same period in 2005 for a 36.7% increase. Earnings per diluted share for the six months ended June 2006 was $1.06 compared to $0.83 per diluted share for the same period in 2005.

The Company's backlog at June 30, 2006, was $121.7 million compared with $88.0 million at June 30, 2005, for a 38.2% increase.

Consolidated financial statements for the quarter ended June 30, 2006 and additional information related to segment sales and profits are attached as addenda to this press release.

Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "As our attached segment analysis presents, we have increases in all segments in net sales, gross profit percentage, and profits. These results would have been even better but for certain negative events occurring at the end of the quarter that were beyond our control. Backlog is up 38.2% compared to this period last year. The gross profit percentage improved 180 basis points over the same quarter of 2005 and 50 basis points over the first quarter of 2006. Parts sales were up 19.9%. Net income for the second quarter of 2006 over the second quarter of 2005 was up 21.0% and year-to-date net income compared to the same period in 2005 was up 36.7%."

Comments Concerning The Second Quarter of 2006: The following discussion is a compilation of "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act. Such statements are not guarantees of future performance and are subject to certain risks, uncertainties, assumptions and other factors, some of which are beyond the Company's control, that could cause actual results to differ materially from those anticipated as of the date of this press release.

Investor Conference Call and Web Simulcast

Astec will conduct a conference call on July 24, 2006, at 10:00 A.M. Eastern Time to review its second quarter results as well as current business conditions. The number to call for this interactive teleconference is (877) 407-9210. International callers should dial (201) 689-8049. Please reference Astec Industries.

The Company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec's conference call will be available online at the Company's website: www.astecindustries.com/investors, conference calls section. An archived webcast will be available for 90 days at www.astecindustries.com.

A replay of the conference call will be available through midnight on Monday, July 31, 2006 by dialing (877) 660-6853, or (201) 612-7415 for international callers- confirmation #208883. A transcription of the conference call will be made available under the Investor Relations section of the Astec Industries, Inc. website within five business days after the call.

Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.

The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company's financial performance for the second quarter and future generally. These forward-looking statements reflect management's expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, downturns in the general economy or the commercial construction industry, increases in the price of oil or decreases in the availability of oil, increase in the price of raw materials, contingent liability for certain customer debt, rising interest rates, rising steel and steel component pricing, delayed or decreased funding for highway construction and maintenance, the timing of large contracts, production capacity, general business conditions in the industry, demand for the Company's products, seasonality and cyclicality in operating results, seasonality of sales volumes, competitive activity and those other factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2005.

For Additional Information Contact:

J. Don Brock
Chairman of the Board & C.E.O.
Phone: (423) 867-4210
Fax: (423) 867-4127
E-mail: dbrock@astecindustries.com
or
F. McKamy Hall
Vice President and Chief Financial Officer
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: mhall@astecindustries.com
or
Stephen C. Anderson
Director of Investor Relations
Phone: (423) 899-5898
Fax: (423) 899-4456
E-mail: sanderson@astecindustries.com

 

 

Astec Industries, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)

(unaudited)

 

 

June 30   

June 30   

 

       2006    

      2005    

Assets

 

 

Current Assets

 

 

Cash and cash equivalents

$      22,015

$      9,833

Receivables, net

79,474

67,865

Inventories

151,059

124,726

Prepaid expenses and other

        11,854

       15,114

Total current assets

264,402

217,538

Property and equipment, net

105,183

97,937

Other assets

       24,884

       28,532

Total assets

$   394,469

$   344,007

Liabilities and shareholders' equity

 

 

Current liabilities

 

 

Revolving credit loan

$               -

$        3,347

Current maturities of long-term debt

-

3,310

Accounts payable

43,329

38,010

Other accrued liabilities

       57,230

       50,808

Total current liabilities

100,559

95,475

Long-term debt, less current maturities

-

23,952

Other non-current liabilities

15,759

14,681

Minority interest in consolidated
  subsidiary

           559

           519

Total shareholders' equity

     277,592

      209,380

Total liabilities and shareholders' equity

$   394,469

$    344,007

 

 

 

 

 

Astec Industries, Inc. and Subsidiaries

Consolidated Statements of Operations

(In thousands)

(unaudited)

 

 

Three Months Ended

Six Months Ended

 

            June 30          

           June 30         

 

    2006  

    2005  

    2006  

    2005  

Net sales

$  191,262

$  170,814

$  376,986

$  332,448

Cost of sales

   143,859

   131,521

   284,443

   258,123

Gross profit

47,403

39,293

92,543

74,325

Selling, general, administrative &
  engineering expenses

    27,254

    22,650

    55,012

    45,621

Income from operations

20,149

16,643

37,531

28,704

Interest expense

417

984

847

2,164

Other income, net of expenses

          187

          96

         482

         135

Income before income taxes and minority
  interest

19,919

15,755

37,166

26,675

Income taxes

7,512

5,497

13,859

9,603

Minority interest in earnings

            42

           37

           45

           59

Net Income

$   12,365

$  10,221

$  23,262

$  17,013

Earnings per Common Share:

Net Income:

  Basic

$   0.58

$   0.51

$   1.09

$   0.85

  Diluted

$   0.56

$   0.49

$   1.06

$   0.83

Weighted average common shares
  outstanding:

  Basic

21,424,731

20,008,425

21,314,446

19,954,422

  Diluted

22,044,210

20,735,201

21,975,519

20,575,752

Certain amounts for 2005 have been reclassified to conform with the 2006 presentation.

 

  

 

Astec Industries, Inc. and Subsidiaries

Segment Sales and Profits

For the three months ended June 30, 2006 and 2005

(dollars in thousands)

(Unaudited)

 

Asphalt   Group  

Aggregate and Mining Group

Mobile Asphalt Paving    Group   

Underground
      Group     

  All Others 

      Total  

2006 Net Sales $

48,218

77,598

37,884

27,562

-

191,262

2005 Net Sales $

47,789

65,170

34,613

23,242

-

170,814

Change $

429

12,428

3,271

4,320

-

20,448

Change %

0.9%

19.1%

9.5%

18.6%

-

12.0%

 

 

 

 

 

 

 

2006 Gross Profit $

12,259

19,394

9,398

6,267

85 

47,403

2006 Gross Profit %

25.4%

25.0%

24.8%

22.7%

-

24.8%

2005 Gross Profit $

11,186

16,074

7,666

4,391

(24)

39,293

2005 Gross Profit %

23.4%

24.7%

22.1%

18.9%

-

23.0%

Change $

1,073

3,320

1,732

1,876

109 

8,110

 

 

 

 

 

 

 

2006 Profit (Loss) $

6,491

9,184

5,164

2,137

(10,734)

12,242

2005 Profit (Loss) $

6,383

7,501

3,663

748

(8,090)

10,205

Change $

108

1,683

1,501

1,389

(2,644)

2,037

Change %

1.7%

22.4%

41.0%

185.7%

(32.7%)

20.0%

 

Segment sales are reported net of intersegment sales. Segment gross profit is net of profit on intersegment
  sales. A reconciliation of total segment profits to the Company's consolidated net income is as follows:

For the three months ended June 30

     2006  

     2005  

Total profit for all segments $

12,242 

10,205 

Minority interest earnings of subsidiary $

(42)

(37)

Recapture of intersegment profit $

        165 

           53 

Net Income $

    12,365 

      10,221 

 

 

 

Astec Industries, Inc. and Subsidiaries

Segment Sales and Profits

For the six months ended June 30, 2006 and 2005

(dollars in thousands)

(Unaudited)

 

Asphalt   Group  

Aggregate and Mining Group

Mobile Asphalt Paving     Group   

Underground
       Group    

 All Others 

     Total  

2006 Net Sales $

103,950

148,859

74,237

49,940

-

376,986

2005 Net Sales $

101,324

123,014

63,420

44,690

-

332,448

Change $

2,626

25,845

10,817

5,250

-

44,538

Change %

2.6%

21.0%

17.1%

11.7%

-

13.4%

 

 

 

 

 

 

 

2006 Gross Profit $

26,821

36,604

18,651

10,487

(21)

92,542

2006 Gross Profit %

25.8%

24.6%

25.1%

21.0%

-

24.5%

2005 Gross Profit $

21,843

29,674

14,682

8,165

(39)

74,325

2005 Gross Profit %

21.6%

24.1%

23.2%

18.3%

-

22.4%

Change $

4,978

6,930

3,969

2,322

18

18,217

 

 

 

 

 

 

 

2006 Profit (Loss) $

14,783

17,166

10,096

2,438

(21,156)

23,327

2005 Profit (Loss) $

12,039

12,686

7,093

904

(15,639)

17,083

Change $

2,744

4,480

3,003

1,534

(5,517)

6,244

Change %

22.8%

35.3%

42.3%

169.7%

(35.3%)

36.6%

 

Segment sales are reported net of intersegment sales. Segment gross profit is net of profit on intersegment
  sales. A reconciliation of total segment profits to the Company's consolidated net income is as follows:

For the six months ended June 30

   2006  

   2005  

Total profit for all segments $

23,327 

17,083 

Minority interest in earnings of subsidiary $

(45)

(59)

Elimination of intersegment profit $

     (20)

      (11)

Net Income $

  23,262 

   17,013 

 

 

 

Astec Industries, Inc. and Subsidiaries

Backlog by Segment

June 30, 2006 and 2005

(dollars in thousands)

(Unaudited)

 

Asphalt   Group  

Aggregate and Mining      Group  

Mobile Asphalt Paving     Group    

Underground
       Group   

 All  Others  

     Total  

2006 Backlog $

40,772

63,926

2,216 

14,736

-

121,650

2005 Backlog $

29,829

45,428

6,300 

6,476

-

88,033

Change $

10,943

18,498

(4,084)

8,260

-

33,617

Change %

36.7%

40.7%

(64.8%)

127.5%

-

38.2%