Astec Industries, Inc. (Nasdaq: ASTE) announced today its financial
results for the second quarter ended June 30, 2024.
"We are pleased with the trajectory of our
second quarter performance, specifically, the overall 5.9% increase
in implied orders in spite of difficult market conditions for our
Materials Solutions segment. Our Infrastructure Solutions segment
not only experienced an 11.0% increase in sales during the quarter,
but also saw a robust increase in implied orders, due to high
demand across the construction industry, especially for asphalt and
concrete plants. Our Materials Solutions segment experienced a
decline in sales, driven by continued finance capacity constraints
with contractors and dealers and longer product conversions, but
saw positive movement in implied orders," said Jaco van der Merwe,
Chief Executive Officer. "We anticipate market dynamics to improve
across both groups in the latter half of the year and anticipate
benefits from our transformation programs in future operating
results."
Mr. van der Merwe continued, "Looking ahead, we
are encouraged by the outlook for both interest rates and in the
domestic road building market. Further, we are taking proactive
steps to drive further cost efficiencies and these actions, coupled
with pricing and operational enhancements, will support our
continued focus on margin improvement."
|
GAAP |
|
Adjusted |
(in millions, except per share and percentage
data) |
2Q 2024 |
|
2Q 2023 |
|
Change |
|
2Q 2024 |
|
2Q 2023 |
|
Change |
Net sales |
$ |
345.5 |
|
|
$ |
350.0 |
|
|
(1.3) % |
|
|
|
|
|
|
Domestic sales |
|
272.1 |
|
|
|
286.4 |
|
|
(5.0) % |
|
|
|
|
|
|
International sales |
|
73.4 |
|
|
|
63.6 |
|
|
15.4 % |
|
|
|
|
|
|
Backlog |
|
531.1 |
|
|
|
688.8 |
|
|
(22.9) % |
|
|
|
|
|
|
Domestic backlog |
|
417.2 |
|
|
|
588.2 |
|
|
(29.1) % |
|
|
|
|
|
|
International backlog |
|
113.9 |
|
|
|
100.6 |
|
|
13.2 % |
|
|
|
|
|
|
(Loss) income from operations |
|
(10.7 |
) |
|
|
17.3 |
|
|
(161.8) % |
|
21.4 |
|
|
26.2 |
|
|
(18.3) % |
Operating margin |
|
(3.1 |
)% |
|
|
4.9 |
% |
|
(800) bps |
|
6.2 |
% |
|
7.5 |
% |
|
(130) bps |
Effective tax rate |
|
(2.2 |
)% |
|
|
17.0 |
% |
|
(1,920) bps |
|
23.9 |
% |
|
19.4 |
% |
|
450 bps |
Net (loss) income attributable to controlling interest |
|
(14.0 |
) |
|
|
13.1 |
|
|
(206.9) % |
|
14.0 |
|
|
19.9 |
|
|
(29.6) % |
Diluted EPS |
|
(0.61 |
) |
|
|
0.58 |
|
|
(205.2) % |
|
0.61 |
|
|
0.87 |
|
|
(29.9) % |
Adjusted EBITDA |
|
|
|
|
|
|
27.6 |
|
|
32.2 |
|
|
(14.3) % |
Adjusted EBITDA margin |
|
|
|
|
|
|
8.0 |
% |
|
9.2 |
% |
|
(120) bps |
All comparisons are made to the prior year
second quarter:
- Net sales decreased primarily due
to softness in Materials Solutions this quarter, which saw lower
equipment sales, attributable to finance capacity constraints with
contractors and dealers, as well as longer product
conversions.
- International sales saw a strong
increase of $9.8 million, up 15.4% year-over-year, given heightened
activity in Canada, Mexico, Africa and Europe, partially offset by
declines in Australia and Brazil.
- Backlog continues to stabilize and
approach our historical range, supported by strong performance in
Infrastructure Solutions.
- During the second quarter of 2024,
we performed a quantitative goodwill impairment test on the
Materials Solutions reporting unit. Based on that test, we
recognized a pre-tax non-cash goodwill impairment charge of $20.2
million to fully impair the goodwill allocated to the Materials
Solutions reporting unit, which was a significant contributor to
the $10.7 million loss from operations.
- Operating margin decreased 800
basis points due to the pre-tax non-cash goodwill impairment charge
and higher selling, general and administrative expenses. Increased
selling, general and administrative costs were largely driven by
increased in technology support and certain professional service
costs and higher provision for a credit loss partially offset by
lower customer concessions and dealer commissions.
- Adjusted net income of $14.0
million and Adjusted EPS of $0.61 exclude $28.0 million and $1.22,
respectively, of incremental costs, net of tax, primarily driven by
goodwill impairment, and transformation program costs.
Segments Results
Our two reportable segments are comprised of
sites based upon the nature of the products or services produced,
the type of customer for the products, the similarity of economic
characteristics, the manner in which management reviews results and
the nature of the production process, among other considerations.
Based on a review of these factors, our Australia and LatAm sites,
which were previously reported in the Infrastructure Solutions
segment have moved to the Materials Solutions segment and Astec
Digital, which was previously included in the Corporate and Other
category has moved to the Infrastructure Solutions segment, each
beginning January 1, 2024. Prior periods have been revised to
reflect the changes for the segment composition for
comparability.
Infrastructure Solutions - Road
building equipment, asphalt and concrete plants, thermal storage
solutions and related aftermarket parts.
- Net sales of $221.4 million
increased 11.0% as the infrastructure construction market remains
strong with healthy demand for asphalt and concrete plant
deliveries anticipated through the beginning of 2025.
- Segment Operating Adjusted EBITDA
of $27.2 million compared to $25.7 million for the same period in
the prior year. Segment Operating Adjusted EBITDA margin of 12.3%
decreased 60 basis points, reflecting manufacturing inefficiencies
at select sites. This, and higher selling, general and
administrative costs, partially offset positive net volume, mix and
pricing net of inflation as well as favorable other period
costs.
Materials Solutions -
Processing equipment to crush, screen and convey aggregates and
related aftermarket parts.
- Net sales of $124.1 million decreased
by 17.7% primarily due to lower equipment sales attributable to
finance capacity constraints with contractors and dealers resulting
in fewer product conversions. Dealer quoting remains solid for
future bookings and sales.
- Segment Operating Adjusted EBITDA
of $10.2 million decreased 44.3% and Segment Operating Adjusted
EBITDA margin of 8.2% decreased 390 basis points, due to lower net
volume and mix, manufacturing inefficiencies, and higher selling,
general and administrative costs that were partially offset by
pricing net of inflation and other period costs.
Balance Sheet, Cash Flow and
Liquidity
- Our total liquidity was $175.8
million, consisting of $60.6 million of cash and cash equivalents
available for operating purposes and $115.2 million available for
additional borrowings under our revolving credit facility.
- Net cash used by operating
activities for the six months ended June 30, 2024 was $36.1 million
to support the timing of collections of trade receivables and the
payment of accounts payable.
- Net cash consumed by investing
activities for the six months ended June 30, 2024 was $12.6 million
as compared to providing net cash of $2.6 million during the six
months ended June 30, 2023, which included $20.1 million of
proceeds from the sale of property and equipment. Capital
expenditures decreased $3.7 million during the three months ended
June 30, 2024, as compared to the same period in 2023.
- Net cash provided by financing
activities for the six months ended June 30, 2024 was $49.5 million
primarily due to higher net borrowings on our outstanding debt
obligations.
Second Quarter Capital
Allocation
- Capital expenditure investments,
primarily related to efficiency improvements, were $7.6
million.
- Dividend payment of $0.13 per
share.
Strategic Transformation Initiative
Update
We are undergoing a multi-year phased
implementation of a standardized ERP system across our global
organization, which is replacing much of our existing disparate
core financial systems. To date, we have launched the human capital
resources module in our locations in the United States and
converted the operations of three manufacturing sites along with
Corporate, two of which occurred during the second quarter of 2024.
We are changing the pace of deployment of future site conversions
in order to improve efficiencies and reduce business disruptions at
each manufacturing site, which will have the effect of reducing the
scope to exclude sites outside North America. With these
modifications, we expect the project to conclude in 2027 with total
approximate implementation costs anticipated to range from $180 to
$200 million. Through the second quarter of 2024, we have incurred
total implementation costs of approximately $119 million. Annual
costs are expected to peak in 2024 to a range of $40 to $45 million
and decrease annually each year through the final implementations
in 2027.
Investor Conference Call and
Webcast
Astec will conduct a conference call and live
webcast today, August 7, 2024, 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 7, 2024 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/619109367
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 21, 2024 by dialing (800) 770-2030, or (609) 800-9909 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 months ended June 30, 2024.
|
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, |
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
|
$ |
345.5 |
|
|
$ |
350.0 |
|
|
$ |
654.7 |
|
|
$ |
697.9 |
|
Cost of sales |
|
|
264.2 |
|
|
|
267.1 |
|
|
|
496.5 |
|
|
|
525.8 |
|
Gross profit |
|
|
81.3 |
|
|
|
82.9 |
|
|
|
158.2 |
|
|
|
172.1 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Selling, general and administrative expenses |
|
|
71.1 |
|
|
|
64.5 |
|
|
|
142.5 |
|
|
|
132.4 |
|
Goodwill impairment |
|
|
20.2 |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
Restructuring, other impairment and asset charges, net |
|
|
0.7 |
|
|
|
1.1 |
|
|
|
(0.1 |
) |
|
|
4.8 |
|
Total operating expenses |
|
|
92.0 |
|
|
|
65.6 |
|
|
|
162.6 |
|
|
|
137.2 |
|
(Loss) income from operations |
|
|
(10.7 |
) |
|
|
17.3 |
|
|
|
(4.4 |
) |
|
|
34.9 |
|
|
|
|
|
|
|
|
|
|
Other expenses, net: |
|
|
|
|
|
|
|
|
Interest expense |
|
|
(3.1 |
) |
|
|
(2.0 |
) |
|
|
(5.8 |
) |
|
|
(4.0 |
) |
Other income, net |
|
|
0.1 |
|
|
|
0.6 |
|
|
|
1.2 |
|
|
|
1.5 |
|
(Loss) income before income taxes |
|
|
(13.7 |
) |
|
|
15.9 |
|
|
|
(9.0 |
) |
|
|
32.4 |
|
Income tax provision |
|
|
0.3 |
|
|
|
2.7 |
|
|
|
1.7 |
|
|
|
7.1 |
|
Net (loss) income |
|
|
(14.0 |
) |
|
|
13.2 |
|
|
|
(10.7 |
) |
|
|
25.3 |
|
Net (income) loss attributable to noncontrolling interest |
|
|
— |
|
|
|
(0.1 |
) |
|
|
0.1 |
|
|
|
(0.1 |
) |
Net (loss) income attributable to controlling interest |
|
$ |
(14.0 |
) |
|
$ |
13.1 |
|
|
$ |
(10.6 |
) |
|
$ |
25.2 |
|
|
|
|
|
|
|
|
|
|
Earnings per common share |
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.61 |
) |
|
$ |
0.58 |
|
|
$ |
(0.47 |
) |
|
$ |
1.11 |
|
Diluted |
|
|
(0.61 |
) |
|
|
0.58 |
|
|
|
(0.47 |
) |
|
|
1.11 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
Basic |
|
|
22,797 |
|
|
|
22,724 |
|
|
|
22,779 |
|
|
|
22,690 |
|
Diluted |
|
|
22,797 |
|
|
|
22,769 |
|
|
|
22,779 |
|
|
|
22,772 |
|
|
Astec Industries Inc.Segment Net Sales and
Operating Adjusted EBITDA(In millions, except
percentage data; unaudited) |
|
Segment net sales
are reported net of intersegment sales. |
|
Three Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
Revenues from external customers |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
221.4 |
|
|
|
199.4 |
|
|
22.0 |
|
|
11.0 |
% |
Materials Solutions |
|
124.1 |
|
|
|
150.8 |
|
|
(26.7 |
) |
|
(17.7)% |
Revenues from external customers - reportable segments |
|
345.5 |
|
|
|
350.2 |
|
|
|
|
|
Corporate and Other |
|
— |
|
|
|
(0.2 |
) |
|
|
|
|
Net sales |
|
345.5 |
|
|
|
350.0 |
|
|
(4.5 |
) |
|
(1.3)% |
|
|
|
|
|
|
|
|
Segment Operating Adjusted EBITDA |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
27.2 |
|
|
|
25.7 |
|
|
1.5 |
|
|
5.8 |
% |
Materials Solutions |
|
10.2 |
|
|
|
18.3 |
|
|
(8.1 |
) |
|
(44.3)% |
Segment Operating Adjusted EBITDA - reportable segments |
|
37.4 |
|
|
|
44.0 |
|
|
|
|
|
Reconciliation of Segment Operating Adjusted EBITDA to
"(Loss) income before income
taxes" |
|
|
|
|
|
|
|
Corporate and Other |
|
(9.8 |
) |
|
|
(11.8 |
) |
|
|
|
|
Transformation program |
|
(11.1 |
) |
|
|
(7.6 |
) |
|
|
|
|
Restructuring and other related charges |
|
(0.9 |
) |
|
|
(0.4 |
) |
|
|
|
|
Goodwill impairment |
|
(20.2 |
) |
|
|
— |
|
|
|
|
|
Other impairment charges |
|
— |
|
|
|
(0.8 |
) |
|
|
|
|
Gain on sale of property and equipment, net |
|
0.2 |
|
|
|
0.1 |
|
|
|
|
|
Interest expense, net |
|
(2.7 |
) |
|
|
(1.5 |
) |
|
|
|
|
Depreciation and amortization |
|
(6.6 |
) |
|
|
(6.2 |
) |
|
|
|
|
Net income attributable to noncontrolling interest |
|
— |
|
|
|
0.1 |
|
|
|
|
|
(Loss) income before income taxes |
$ |
(13.7 |
) |
|
$ |
15.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Adjusted EBITDA Margin |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
Infrastructure Solutions |
|
12.3 |
% |
|
|
12.9 |
% |
|
(60) bps |
|
|
Materials Solutions |
|
8.2 |
% |
|
|
12.1 |
% |
|
(390) bps |
|
|
(Continued)
|
Astec Industries Inc.Segment Net Sales and
Operating Adjusted EBITDA (Continued)(In millions,
except percentage data; unaudited) |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
$ Change |
|
% Change |
Revenues from external customers |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
423.6 |
|
|
|
414.9 |
|
|
8.7 |
|
|
2.1 |
% |
Materials Solutions |
|
231.1 |
|
|
|
283.0 |
|
|
(51.9 |
) |
|
(18.3)% |
Net sales |
|
654.7 |
|
|
|
697.9 |
|
|
(43.2 |
) |
|
(6.2)% |
|
|
|
|
|
|
|
|
Segment Operating Adjusted EBITDA |
|
|
|
|
|
|
|
Infrastructure Solutions |
|
52.8 |
|
|
|
54.2 |
|
|
(1.4 |
) |
|
(2.6)% |
Materials Solutions |
|
15.5 |
|
|
|
32.9 |
|
|
(17.4 |
) |
|
(52.9)% |
Segment Operating Adjusted EBITDA - reportable segments |
|
68.3 |
|
|
|
87.1 |
|
|
|
|
|
Reconciliation of Segment Operating Adjusted EBITDA to
"(Loss) income before income
taxes" |
|
|
|
|
|
|
|
Corporate and Other |
|
(21.8 |
) |
|
|
(19.7 |
) |
|
|
|
|
Transformation program |
|
(17.4 |
) |
|
|
(14.8 |
) |
|
|
|
|
Restructuring and other related charges |
|
(1.0 |
) |
|
|
(7.5 |
) |
|
|
|
|
Goodwill impairment |
|
(20.2 |
) |
|
|
— |
|
|
|
|
|
Other impairment charges |
|
— |
|
|
|
(0.8 |
) |
|
|
|
|
Gain on sale of property and equipment, net |
|
1.1 |
|
|
|
3.5 |
|
|
|
|
|
Interest expense, net |
|
(4.8 |
) |
|
|
(3.0 |
) |
|
|
|
|
Depreciation and amortization |
|
(13.1 |
) |
|
|
(12.5 |
) |
|
|
|
|
Net income (loss) attributable to noncontrolling interest |
|
(0.1 |
) |
|
|
0.1 |
|
|
|
|
|
(Loss) income before income taxes |
$ |
(9.0 |
) |
|
$ |
32.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Adjusted EBITDA Margin |
|
2024 |
|
|
|
2023 |
|
|
Change |
|
|
Infrastructure Solutions |
|
12.5 |
% |
|
|
13.1 |
% |
|
(60) bps |
|
|
Materials Solutions |
|
6.7 |
% |
|
|
11.6 |
% |
|
(490) bps |
|
|
|
Astec Industries Inc.Condensed
Consolidated Balance Sheets(In millions;
unaudited) |
|
|
June 30, 2024 |
|
December 31, 2023 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash, cash equivalents and restricted cash |
$ |
63.2 |
|
$ |
63.2 |
Investments |
|
5.2 |
|
|
5.7 |
Trade receivables, contract assets and other receivables, net |
|
218.2 |
|
|
152.7 |
Inventories, net |
|
455.3 |
|
|
455.6 |
Other current assets, net |
|
36.9 |
|
|
42.3 |
Total current assets |
|
778.8 |
|
|
719.5 |
Property, plant and equipment, net |
|
186.9 |
|
|
187.6 |
Other long-term assets |
|
141.3 |
|
|
152.2 |
Total assets |
$ |
1,107.0 |
|
$ |
1,059.3 |
|
|
|
|
Liabilities |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
102.6 |
|
$ |
116.9 |
Customer deposits |
|
89.1 |
|
|
70.2 |
Other current liabilities |
|
119.5 |
|
|
111.9 |
Total current liabilities |
|
311.2 |
|
|
299.0 |
Long-term debt |
|
125.0 |
|
|
72.0 |
Other long-term liabilities |
|
37.5 |
|
|
34.6 |
Total equity |
|
633.3 |
|
|
653.7 |
Total liabilities and equity |
$ |
1,107.0 |
|
$ |
1,059.3 |
|
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows (In
millions; unaudited) |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
Net (loss) income |
$ |
(10.7 |
) |
|
$ |
25.3 |
|
Adjustments to reconcile net (loss) income to net cash used in
operating activities: |
|
|
|
Depreciation and amortization |
|
13.1 |
|
|
|
12.5 |
|
Provision for credit losses |
|
1.9 |
|
|
|
0.2 |
|
Provision for warranties |
|
8.7 |
|
|
|
10.6 |
|
Deferred compensation (benefit) expense |
|
(0.2 |
) |
|
|
0.1 |
|
Share-based compensation |
|
2.3 |
|
|
|
2.2 |
|
Deferred tax benefit |
|
(5.3 |
) |
|
|
(4.7 |
) |
Gain on disposition of property and equipment, net |
|
(1.1 |
) |
|
|
(3.5 |
) |
Goodwill impairment |
|
20.2 |
|
|
|
— |
|
Other impairment charges |
|
— |
|
|
|
0.8 |
|
Amortization of debt issuance costs |
|
0.2 |
|
|
|
0.2 |
|
Distributions to deferred compensation programs' participants |
|
(0.5 |
) |
|
|
(0.4 |
) |
Change in operating assets and liabilities: |
|
|
|
Purchase of trading securities, net |
|
(2.3 |
) |
|
|
(1.1 |
) |
Receivables and other contract assets |
|
(68.6 |
) |
|
|
9.7 |
|
Inventories |
|
(1.7 |
) |
|
|
(37.2 |
) |
Prepaid expenses |
|
3.2 |
|
|
|
5.7 |
|
Other assets |
|
(3.2 |
) |
|
|
(8.3 |
) |
Accounts payable |
|
(12.8 |
) |
|
|
1.3 |
|
Accrued loss reserves |
|
(0.1 |
) |
|
|
0.6 |
|
Accrued employee related liabilities |
|
(12.0 |
) |
|
|
1.6 |
|
Other accrued liabilities |
|
20.4 |
|
|
|
(7.4 |
) |
Accrued product warranty |
|
(9.7 |
) |
|
|
(6.0 |
) |
Customer deposits |
|
19.0 |
|
|
|
(11.4 |
) |
Income taxes payable/prepaid |
|
3.1 |
|
|
|
6.7 |
|
Net cash used in operating activities |
|
(36.1 |
) |
|
|
(2.5 |
) |
Cash flows from investing activities: |
|
|
|
Expenditures for property and equipment |
|
(13.4 |
) |
|
|
(17.1 |
) |
Proceeds from sale of property and equipment |
|
1.1 |
|
|
|
20.1 |
|
Purchase of investments |
|
(0.7 |
) |
|
|
(0.5 |
) |
Sale of investments |
|
0.4 |
|
|
|
0.1 |
|
Net cash (used in) provided by investing activities |
|
(12.6 |
) |
|
|
2.6 |
|
(Continued)
|
Astec Industries Inc. Condensed
Consolidated Statements of Cash Flows
(Continued)(In millions; unaudited) |
|
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows from financing activities: |
|
|
|
Payment of dividends |
|
(5.9 |
) |
|
|
(5.9 |
) |
Proceeds from borrowings on credit facilities and bank loans |
|
107.2 |
|
|
|
113.6 |
|
Repayments of borrowings on credit facilities and bank loans |
|
(51.4 |
) |
|
|
(128.1 |
) |
Withholding tax paid upon vesting of share-based compensation
awards |
|
(0.5 |
) |
|
|
(1.6 |
) |
Net cash provided by (used in) financing activities |
|
49.5 |
|
|
|
(22.0 |
) |
Effect of exchange rates on cash |
|
(0.8 |
) |
|
|
0.4 |
|
(Decrease) increase in cash, cash equivalents and restricted
cash |
|
— |
|
|
|
(21.5 |
) |
Cash, cash equivalents and restricted cash, beginning of
period |
|
63.2 |
|
|
|
66.0 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
63.2 |
|
|
$ |
44.5 |
|
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, which are based on the
statutory tax rate applicable to each respective item unless
otherwise noted below, 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 include 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 that was
largely completed during 2023 with certain capital investments
finalized in early 2024. Transformation program costs for the lean
manufacturing initiative ceased at the end of 2023. 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 workforce reductions effected in the second
quarter of 2024, the termination of our previous Chief Executive
Officer, the limited overhead restructuring action implemented in
February 2023 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.
- Goodwill impairment - Goodwill
impairment charges, to the extent that they are experienced, are
recorded in "Goodwill impairment" in the Consolidated Statements of
Operations. These charges are associated with the impairment of the
goodwill allocated to the Materials Solutions reporting unit during
the second quarter of 2024. The goodwill impairment is largely
nondeductible for tax purposes and, as such, the tax impact applied
reflects the actual tax impact by jurisdiction.
- Other impairment charges - 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 during the second
quarter of 2023.
- Gain 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.
|
Astec Industries Inc.GAAP vs Non-GAAP
Adjusted Income from Operations
Reconciliations(In millions, except percentage
data; unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
345.5 |
|
|
$ |
350.0 |
|
|
$ |
654.7 |
|
|
$ |
697.9 |
|
|
|
|
|
|
|
|
|
(Loss) income from operations |
$ |
(10.7 |
) |
|
$ |
17.3 |
|
|
$ |
(4.4 |
) |
|
$ |
34.9 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
11.2 |
|
|
|
7.8 |
|
|
|
17.7 |
|
|
|
15.0 |
|
Restructuring and other related charges |
|
0.9 |
|
|
|
0.4 |
|
|
|
1.0 |
|
|
|
7.5 |
|
Goodwill impairment |
|
20.2 |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
Other impairment charges |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
0.8 |
|
Gain on sale of property and equipment, net |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
(3.5 |
) |
Adjusted income from operations |
$ |
21.4 |
|
|
$ |
26.2 |
|
|
$ |
33.4 |
|
|
$ |
54.7 |
|
Adjusted operating margin |
|
6.2 |
% |
|
|
7.5 |
% |
|
|
5.1 |
% |
|
|
7.8 |
% |
|
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, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net (loss) income attributable to controlling interest |
$ |
(14.0 |
) |
|
$ |
13.1 |
|
|
$ |
(10.6 |
) |
|
$ |
25.2 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
11.2 |
|
|
|
7.8 |
|
|
|
17.7 |
|
|
|
15.0 |
|
Restructuring and other related charges |
|
0.9 |
|
|
|
0.4 |
|
|
|
1.0 |
|
|
|
7.5 |
|
Goodwill impairment |
|
20.2 |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
Other impairment charges |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
0.8 |
|
Gain on sale of property and equipment, net |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
(3.5 |
) |
Income tax impact of adjustments |
|
(4.1 |
) |
|
|
(2.1 |
) |
|
|
(5.4 |
) |
|
|
(4.6 |
) |
Adjusted net income attributable to controlling interest |
$ |
14.0 |
|
|
$ |
19.9 |
|
|
$ |
21.8 |
|
|
$ |
40.4 |
|
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
(0.61 |
) |
|
$ |
0.58 |
|
|
$ |
(0.47 |
) |
|
$ |
1.11 |
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
0.49 |
|
|
|
0.34 |
|
|
|
0.78 |
|
|
|
0.66 |
|
Restructuring and other related charges (a) |
|
0.03 |
|
|
|
0.01 |
|
|
|
0.05 |
|
|
|
0.32 |
|
Goodwill impairment |
|
0.89 |
|
|
|
— |
|
|
|
0.89 |
|
|
|
— |
|
Asset impairment (a) |
|
— |
|
|
|
0.03 |
|
|
|
— |
|
|
|
0.03 |
|
Gain on sale of property and equipment, net |
|
(0.01 |
) |
|
|
— |
|
|
|
(0.05 |
) |
|
|
(0.15 |
) |
Income tax impact of adjustments |
|
(0.18 |
) |
|
|
(0.09 |
) |
|
|
(0.24 |
) |
|
|
(0.20 |
) |
Adjusted EPS |
$ |
0.61 |
|
|
$ |
0.87 |
|
|
$ |
0.96 |
|
|
$ |
1.77 |
|
(a) Calculation includes the impact of a rounding adjustment |
|
Astec Industries Inc.EBITDA and Adjusted
EBITDA Reconciliations(In millions, except
percentage data; unaudited) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
345.5 |
|
|
$ |
350.0 |
|
|
$ |
654.7 |
|
|
$ |
697.9 |
|
|
|
|
|
|
|
|
|
Net (loss) income attributable to controlling interest |
$ |
(14.0 |
) |
|
$ |
13.1 |
|
|
$ |
(10.6 |
) |
|
$ |
25.2 |
|
Interest expense, net |
|
2.7 |
|
|
|
1.5 |
|
|
|
4.8 |
|
|
|
3.0 |
|
Depreciation and amortization |
|
6.6 |
|
|
|
6.2 |
|
|
|
13.1 |
|
|
|
12.5 |
|
Income tax provision |
|
0.3 |
|
|
|
2.7 |
|
|
|
1.7 |
|
|
|
7.1 |
|
EBITDA |
|
(4.4 |
) |
|
|
23.5 |
|
|
|
9.0 |
|
|
|
47.8 |
|
EBITDA margin |
(1.3) % |
|
|
6.7 |
% |
|
|
1.4 |
% |
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Transformation program |
|
11.1 |
|
|
|
7.6 |
|
|
|
17.4 |
|
|
|
14.8 |
|
Restructuring and other related charges |
|
0.9 |
|
|
|
0.4 |
|
|
|
1.0 |
|
|
|
7.5 |
|
Goodwill impairment |
|
20.2 |
|
|
|
— |
|
|
|
20.2 |
|
|
|
— |
|
Other impairment charges |
|
— |
|
|
|
0.8 |
|
|
|
— |
|
|
|
0.8 |
|
Gain on sale of property and equipment, net |
|
(0.2 |
) |
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
(3.5 |
) |
Adjusted EBITDA |
$ |
27.6 |
|
|
$ |
32.2 |
|
|
$ |
46.5 |
|
|
$ |
67.4 |
|
Adjusted EBITDA margin |
|
8.0 |
% |
|
|
9.2 |
% |
|
|
7.1 |
% |
|
|
9.7 |
% |
Astec Industries (NASDAQ:ASTE)
過去 株価チャート
から 8 2024 まで 9 2024
Astec Industries (NASDAQ:ASTE)
過去 株価チャート
から 9 2023 まで 9 2024