Financial Performance - Net sales for Q2 2021 were $278.0 million, an increase of 4.8% compared to $265.3 million in Q2 2020[97] - Gross profit for Q2 2021 was $67.0 million, reflecting a 12.4% increase[97] - The company experienced a net income attributable to Astec of $9.0 million, a decrease of 3.2% compared to the previous year[97] - Selling, general and administrative expenses rose by $10.7 million or 28.7% to $48.0 million, accounting for 17.3% of net sales in Q2 2021, compared to 14.1% in Q2 2020[119] - The effective income tax rate for Q2 2021 was 20.4%, up from 16.1% in Q2 2020, primarily due to changes in jurisdictional income and loss[124] Sales and Orders - The backlog of orders as of June 30, 2021, was $436.1 million, an increase of $254.2 million or 139.7% from $181.9 million in June 2020[104] - Domestic sales for Q2 2021 were $201.4 million, representing 72.4% of consolidated net sales, a decrease of $20.3 million or 9.2% from Q2 2020[114] - International sales for Q2 2021 were $76.6 million, representing 27.6% of consolidated net sales, a 75.7% increase from $43.6 million or 16.4% in Q2 2020[116] - Incremental sales from acquired businesses contributed $14.6 million to Q2 2021 net sales[112] - Infrastructure Solutions segment sales for Q2 2021 were $180.2 million, a decrease of $1.7 million or 0.9% from $181.9 million in Q2 2020[127] - Materials Solutions segment sales for Q2 2021 increased by $14.4 million or 17.3% to $97.8 million compared to $83.4 million in Q2 2020[128] Production and Operational Challenges - Labor shortages and supply chain constraints negatively affected production throughput, leading to lower equipment sales[115] - The company is focused on adjusting production schedules and enhancing recruitment processes to address labor shortages[110] - Costs associated with the strategic transformation initiative, Simplify, Focus and Grow (SFG), were $2.1 million for Q2 2021[102] Segment Performance - Infrastructure Solutions segment profit decreased to $11.8 million in Q2 2021 from $14.2 million in Q2 2020, a decline of $2.4 million or 16.9%[131] - Materials Solutions segment profit increased to $12.8 million in Q2 2021 from $8.5 million in Q2 2020, an increase of $4.3 million or 50.6%[132] - For the first six months of 2021, Infrastructure Solutions segment profit was $32.8 million, up from $31.4 million in the same period of 2020, an increase of $1.4 million or 4.5%[133] - Materials Solutions segment profit for the first six months of 2021 was $19.3 million, compared to $14.5 million in the same period of 2020, an increase of $4.8 million or 33.1%[134] Cash Flow and Assets - Net cash provided by operating activities decreased by $54.4 million for the first six months of 2021, totaling $30.5 million compared to $84.9 million in the same period of 2020[140] - Total current assets increased to $634.5 million as of June 30, 2021, up from $565.8 million as of December 31, 2020, an increase of $68.7 million or 12.1%[144] - Total current liabilities increased to $207.8 million as of June 30, 2021, up from $170.3 million as of December 31, 2020, an increase of $37.5 million or 22.0%[144] Market Risk Management - Market risk exposures have not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2020 was filed[149] - Quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, "Item 7A" of the Annual Report[149] - The disclosures provide insights into the company's market risk management strategies[149] - The company continues to monitor market risk factors that could impact financial performance[149] - No significant new market risks have been identified since the last report[149] - The company remains committed to transparency in its market risk disclosures[149] - Historical data from the previous fiscal year is referenced for comparative analysis[149] - The company emphasizes the importance of understanding market risk in its financial reporting[149] - The Annual Report serves as a key resource for stakeholders to assess market risk[149] - Ongoing evaluations of market conditions are part of the company's risk management framework[149]

PART I [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents Astec Industries, Inc.'s unaudited consolidated financial statements for Q1 2021, covering balance sheets, income, cash flows, and equity, with detailed accounting notes [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$868.3 million** as of March 31, 2021, with corresponding increases in total liabilities and equity Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Current Assets** | $592.0 | $565.8 | | **Total Assets** | $868.3 | $848.2 | | **Total Current Liabilities** | $185.1 | $170.3 | | **Total Liabilities** | $221.3 | $205.2 | | **Total Equity** | $647.0 | $643.0 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Net sales slightly decreased to **$284.4 million** in Q1 2021, resulting in a significant drop in net income to **$8.7 million** or **$0.38 per diluted share** Q1 2021 vs. Q1 2020 Performance (in millions, except per share data) | Metric | Q1 2021 | Q1 2020 | | :--- | :--- | :--- | | Net Sales | $284.4 | $288.8 | | Gross Profit | $68.5 | $73.4 | | Income from Operations | $9.8 | $15.1 | | Net Income Attributable to Controlling Interest | $8.7 | $20.6 | | Diluted Earnings Per Share | $0.38 | $0.91 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly improved to **$14.6 million** in Q1 2021, contributing to an ending cash balance of **$164.6 million** Cash Flow Summary (in millions) | Activity | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $14.6 | $5.4 | | Net cash used by investing activities | $(3.0) | $(4.1) | | Net cash used by financing activities | $(5.6) | $(3.7) | | **Increase (decrease) in cash** | **$6.0** | **$(5.0)** | | **Cash and cash equivalents, end of period** | **$164.6** | **$43.9** | [Notes To Unaudited Consolidated Financial Statements](index=9&type=section&id=Notes%20To%20Unaudited%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, business segments, recent acquisitions, revenue recognition, segment performance, and restructuring activities - The company operates in two reportable segments: Infrastructure Solutions and Materials Solutions, with a Corporate category for the parent and a captive insurance company[26](index=26&type=chunk)[27](index=27&type=chunk) - In 2020, the company acquired CON-E-CO for **$13.8 million** and BMH Systems for **$15.6 million** to strengthen its Infrastructure Solutions segment[35](index=35&type=chunk)[37](index=37&type=chunk) - The effective income tax rate was **9.4%** for Q1 2021, compared to a **(33.3)% benefit** in Q1 2020, significantly impacted by a **$9.5 million** CARES Act tax benefit in the prior year[51](index=51&type=chunk)[52](index=52&type=chunk) - Restructuring charges of **$0.7 million** were recorded in Q1 2021, primarily for facility closures, compared to **$2.1 million** in Q1 2020, which included a **$1.6 million** goodwill impairment[78](index=78&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) [Management's Discussion and Analysis (MD&A)](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2021 financial results, noting a **1.5% decrease** in net sales and a **57.8% drop** in net income, alongside a **71.5% increase** in order backlog Q1 2021 Financial Highlights vs. Q1 2020 | Metric | Change | | :--- | :--- | | Net Sales | -1.5% | | Gross Profit | -6.7% | | Income from Operations | - $5.3M | | Net Income | -57.8% | | Diluted EPS | -58.2% to $0.38 | - The backlog of orders increased **71.5%** to **$420.8 million** as of March 31, 2021, driven by pent-up demand and slower production cycles due to labor shortages[98](index=98&type=chunk)[114](index=114&type=chunk) - The company faces challenges from rising steel prices, supply constraints on components like engines, and a shortage of production personnel[101](index=101&type=chunk)[102](index=102&type=chunk) [Results of Operations](index=23&type=section&id=Results%20of%20Operations) Net sales decreased **1.5%** to **$284.4 million** in Q1 2021, primarily due to Materials Solutions, while gross profit margin contracted and SG&A expenses increased - Net sales decreased by **$4.4 million (1.5%)** year-over-year, primarily due to lower international equipment and parts sales in the Materials Solutions segment[104](index=104&type=chunk) - Gross profit margin decreased by **130 basis points** to **24.1%** from **25.4%** in Q1 2020, attributed to reduced sales volumes and lower manufacturing efficiency[108](index=108&type=chunk) - SG&A expenses rose by **$2.0 million (4.0%)**, mainly due to transformation initiatives, **$3.6 million** in higher software licensing costs, and **$2.2 million** from acquired businesses[109](index=109&type=chunk) [Segment Analysis](index=24&type=section&id=Segment%20Analysis) Infrastructure Solutions profit increased **22.1%** to **$21.0 million**, Materials Solutions profit rose **8.3%** to **$6.5 million**, but Corporate segment loss significantly increased to **$18.8 million** Segment Profit (Loss) (in millions) | Segment | Q1 2021 | Q1 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Infrastructure Solutions | $21.0 | $17.2 | $3.8 | 22.1% | | Materials Solutions | $6.5 | $6.0 | $0.5 | 8.3% | | Corporate | $(18.8) | $(2.9) | $(15.9) | (548.3)% | - Infrastructure Solutions profit grew due to decreased selling expenses (**$7.5 million**) and lower restructuring/impairment charges (**$1.8 million**), offsetting a **$3.8 million** decrease in gross profit[117](index=117&type=chunk) - The increased Corporate loss was driven by **$7.0 million** in higher income tax expense, **$4.9 million** in increased payroll/incentive costs, and **$3.7 million** in higher software licensing costs[119](index=119&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position with **$164.6 million** in cash and **$144.5 million** available credit, with estimated 2021 capital expenditures between **$25 million** and **$30 million** - As of March 31, 2021, the company had **$164.6 million** in cash and no outstanding borrowings on its **$150.0 million** credit facility[121](index=121&type=chunk) - Estimated capital expenditures for the full year 2021 are projected to be between **$25 million** and **$30 million**[120](index=120&type=chunk) - In late 2020, the company entered into software arrangements with future payment obligations of **$42.0 million** through September 2027 as part of its transformation initiatives[132](index=132&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in the company's market risk exposures have occurred since the 2020 Annual Report on Form 10-K disclosures - The company's market risk exposures have not materially changed since its 2020 Annual Report on Form 10-K[133](index=133&type=chunk) [Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting - The CEO and CFO concluded that as of March 31, 2021, the company's disclosure controls and procedures were effective[134](index=134&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2021 that have materially affected, or are reasonably likely to materially affect, these controls[135](index=135&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, including a breach of warranty lawsuit against its GEFCO subsidiary, with no expected material adverse effect - The company's GEFCO subsidiary is a defendant in a lawsuit alleging breach of warranty for equipment sold in 2013, with the plaintiff seeking rescission of the **~$8.5 million** contract and damages[57](index=57&type=chunk) - Management does not believe that any pending or threatened litigation will result in an outcome that would materially affect the company's business or financial position[136](index=136&type=chunk) [Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) This section refers to the 2020 Annual Report on Form 10-K for detailed risk factors, indicating no material changes during the quarter - The report directs stakeholders to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2020, implying no new material risks have emerged[137](index=137&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - No unregistered sales of equity securities or use of proceeds were reported[137](index=137&type=chunk) [Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including compensation plans, equity award agreements, and CEO/CFO certifications - Filed exhibits include management compensation plans and agreements, such as the Deferred Compensation Plan and award agreements for the 2021 Equity Incentive Plan[140](index=140&type=chunk) - Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act are included as exhibits[140](index=140&type=chunk)

Astec Industries, Inc. (NASDAQ:ASTE) Q1 2021 Earnings Conference Call May 5, 2021 10:00 AM ET Company Participants Steve Anderson - SVP, Administration, IR Barry Ruffalo - CEO Becky Weyenberg - CFO Conference Call Participants Mig Dobre - Robert W. Baird Stanley Elliott - Stifel Steve Ferazani - Sidoti Operator Hello, and welcome to the Astec Industries Incorporated First Quarter Earnings Call. As a reminder, this conference call is being recorded. It is my pleasure to introduce your host, Steve Anderson, S ...

Astec Industries, Inc. (NASDAQ:ASTE) Q4 2020 Earnings Conference Call March 1, 2021 10:00 AM ET Company Participants Steve Anderson - Senior Vice President, Administration, Investor Relations & Secretary Barry Ruffalo - Chief Executive Officer Becky Weyenberg - Chief Financial Officer Conference Call Participants Mig Dobre - Robert W. Baird Stanley Elliott - Stifel Steve Ferazani - Sidoti Larry De Maria - William Blair Operator Hello and welcome to the Astec Industries Inc. Fourth Quarter 2020 Earnings Call ...

INDEX Title of each Class Trading Symbol Name of each exchange on which registered Common Stock ASTE The Nasdaq Stock Market LLC UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission ...

Astec Industries, Inc. (NASDAQ:ASTE) Q3 2020 Results Earnings Conference Call November 4, 2020 10:00 AM ET Company Participants Steve Anderson - Senior Vice President, Administration, IR and Secretary Barry Ruffalo - Chief Executive Officer Becky Weyenberg - Chief Financial Officer Conference Call Participants Mig Dobre - Robert W. Baird. Stanley Elliott - Stifel Operator Hello and welcome to the Astec Industries Third Quarter 2020 Earnings Conference Call. As a reminder this conference call is being record ...