Core Viewpoint - Astec Industries, Inc. is set to release its third quarter 2024 financial results on November 6, 2024, followed by a conference call to discuss the results [1]. Group 1: Financial Results Announcement - The third quarter results will be released to the wire service at approximately 7:00 a.m. Eastern Time on November 6, 2024 [1]. - A live conference call will take place at 8:30 a.m. Eastern Time on the same day, hosted by key executives including the President and CEO, CFO, and other senior management [1]. Group 2: Access Information - Participants can access the call by dialing (888) 440-4118 or (646) 960-0833 for international callers, at least 10 minutes prior to the scheduled time [1]. - A live webcast of the call will also be available through a provided link, with an archived version accessible for ninety days post-call [1]. Group 3: Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, divided into two main business segments: Infrastructure Solutions and Materials Solutions [3].

Group 1 - Astec Industries, Inc. will present at the Sidoti Small-Cap Virtual Investor Conference on September 19, 2024, at 10:00 a.m. EDT, with key executives participating in one-on-one meetings with investors [1] - The conference aims to provide a platform for small and microcap companies to engage with investors, highlighting Astec's focus on investor relations [1][2] - Registration for the conference and one-on-one meetings is free and open to all interested participants, not limited to Sidoti clients [1] Group 2 - Astec Industries specializes in manufacturing equipment for asphalt road building, aggregate processing, and concrete production, operating through two main segments: Infrastructure Solutions and Materials Solutions [3] - The Infrastructure Solutions segment includes products related to road building, asphalt and concrete plants, as well as thermal and storage solutions [3] - The Materials Solutions segment focuses on aggregate processing equipment, indicating a comprehensive approach to construction and infrastructure needs [3]

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 June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission File Number: 001-11595 Astec Industries, Inc. (Exact name of registrant as specified in its charter) Tennessee 62-0873631 (State or o ...

Financial Data and Key Metrics Changes - In Q2 2024, the company reported net sales of $345.5 million, a slight decrease of 1.3% compared to the previous year [16] - Gross margin was 23.5%, with adjusted EBITDA declining 14.3% to $27.6 million and adjusted EBITDA margin decreasing 120 basis points to 8% [17][20] - Adjusted EPS was $0.61, down 29.9% from $0.87 in the prior year [17] Business Line Data and Key Metrics Changes - Infrastructure Solutions segment net sales increased 11% year-over-year to $221.4 million, driven by strong equipment sales [10][12] - Material Solutions segment net sales decreased 17.7% year-over-year to $124.1 million, impacted by longer product conversions and finance capacity constraints [19] - Infrastructure Solutions operating adjusted EBITDA margin was 12.3%, down 60 basis points, while Material Solutions operating adjusted EBITDA margin was 8.2%, down 390 basis points [10][19] Market Data and Key Metrics Changes - Domestic sales decreased by $14.3 million or 5%, while international sales increased by $9.8 million or 15.4% [16] - Total backlog as of June 30, 2024, was $531 million, with Infrastructure Solutions backlog at $369 million (down 16% year-over-year) and Material Solutions backlog at $163 million (down 35.1% year-over-year) [13][18] Company Strategy and Development Direction - The company is focusing on three core pillars: empowered employees, customer focus, and industry-changing innovation [8] - A restructuring program was implemented to address manufacturing inefficiencies, with expected savings of $1.5 million to $1.8 million per quarter [34] - The company anticipates flat to low single-digit sales growth for the full year compared to 2023, supported by strong demand in the infrastructure construction market [22][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business despite market challenges, highlighting strong demand for asphalt and concrete plants [22] - The company expects continued strong demand in the infrastructure construction market through early 2025, with a healthy backlog supporting future sales [11][50] - Management noted that the electronic component issues affecting deliveries have largely been resolved, allowing for a more stable outlook [41] Other Important Information - The company reduced inventory by 5.9% or $28.7 million compared to Q1 2024 [7] - Cash and cash equivalents at the end of the quarter were $60.6 million, with total available liquidity of $175.8 million [20] - The company returned cash to shareholders through a dividend of $0.13 per share and spent $7.6 million on capital expenditures [21] Q&A Session Summary Question: How does the company view revenue for Material Solutions in the second half? - Management indicated that Material Solutions sales need to align with the beginning of the year to reach similar levels as the second quarter, with strong quoting activity supporting this outlook [27][29] Question: What is the expected EBITDA margin for Material Solutions in the second half? - Management expressed confidence that the margin outlook for H2 will be in line with Q2, with efforts to minimize under-absorption in factories [30][31] Question: Will the company adjust its gross margin target for the year? - Management confirmed that they are comfortable maintaining the gross margin target range of 24% to 25.5% for the year, despite lower margins in the first half [36][37] Question: How is the demand for asphalt and concrete expected to evolve? - Management noted that demand remains strong, with visibility into backlog extending into 2025, and they expect continued strong performance in the asphalt and concrete segments [47][50]

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Astec Q2 2024 Financial Results [Q2 2024 Key Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Overview) Astec's Q2 2024 net sales slightly decreased, with diluted EPS heavily impacted by a $20.2 million goodwill impairment Q2 2024 Financial Performance Summary (in millions, except per share data) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $345.5M | $350.0M | (1.3)% | | Diluted EPS | $(0.61) | $0.58 | (205.2)% | | Adjusted EPS | $0.61 | $0.87 | (29.9)% | | Backlog | $531.1M | $688.8M | (22.9)% | | International Sales | $73.4M | $63.6M | 15.4% | | (Loss) Income from Operations | $(10.7)M | $17.3M | (161.8)% | - A pre-tax non-cash goodwill impairment charge of **$20.2 million** was recognized for the Materials Solutions reporting unit, significantly contributing to the quarterly operating loss. This impairment had an **$0.89 per share** impact on Diluted EPS[2](index=2&type=chunk)[7](index=7&type=chunk) - Implied orders showed positive momentum, increasing **5.9%** sequentially from Q1 2024, driven by high demand in the Infrastructure Solutions segment[2](index=2&type=chunk)[4](index=4&type=chunk) - Management noted that federal highway bill spending is still in its early stages, with only about **20%** of funds disbursed, suggesting future potential for the domestic road building market[2](index=2&type=chunk) [Segment Performance](index=2&type=section&id=Segments%20Results) Segment performance was mixed, with Infrastructure Solutions growing and Materials Solutions declining due to financing constraints Infrastructure Solutions Q2 2024 Performance (in millions) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $221.4M | $199.4M | +11.0% | | Segment Operating Adjusted EBITDA | $27.2M | $25.7M | +5.8% | | Segment Operating Adjusted EBITDA Margin | 12.3% | 12.9% | -60 bps | - The Infrastructure Solutions segment's sales growth was fueled by a strong infrastructure construction market, with healthy demand for asphalt and concrete plant deliveries expected through early 2025[9](index=9&type=chunk) Materials Solutions Q2 2024 Performance (in millions) | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $124.1M | $150.8M | -17.7% | | Segment Operating Adjusted EBITDA | $10.2M | $18.3M | -44.3% | | Segment Operating Adjusted EBITDA Margin | 8.2% | 12.1% | -390 bps | - The decline in the Materials Solutions segment was primarily due to lower equipment sales resulting from finance capacity constraints among contractors and dealers, which led to fewer product conversions[10](index=10&type=chunk) [Financial Position and Cash Flow](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20and%20Liquidity) Astec maintained total liquidity of $175.8 million, with net cash used in operating activities at $36.1 million - Total liquidity stood at **$175.8 million**, comprising **$60.6 million** in cash and cash equivalents and **$115.2 million** available under the revolving credit facility[11](index=11&type=chunk) - Net cash used in operating activities for the six months ended June 30, 2024, was **$36.1 million**[11](index=11&type=chunk) - Capital expenditures for efficiency improvements were **$7.6 million** in Q2 2024, and the company paid a dividend of **$0.13 per share**[12](index=12&type=chunk) [Strategic Initiatives and Outlook](index=2&type=section&id=Strategic%20Transformation%20Initiative%20Update) Astec continues its multi-year ERP system implementation, expected to complete in 2027, while driving cost efficiencies - Management anticipates market dynamics to improve in the latter half of the year and expects benefits from transformation programs in future operating results[4](index=4&type=chunk) - The company is implementing a standardized ERP system. The pace of deployment is being adjusted to improve efficiencies, with the project now expected to conclude in **2027**[13](index=13&type=chunk) - Total anticipated implementation costs for the ERP project range from **$180 to $200 million**, with approximately **$119 million** incurred through Q2 2024. Annual costs are expected to peak in **2024**[14](index=14&type=chunk) [Detailed Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Q2 and H1 2024 and 2023 [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Statements of Operations (in millions, except per share data) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | :--- | :--- | | | **2024** | **2023** | **2024** | **2023** | | **Net sales** | **$345.5** | **$350.0** | **$654.7** | **$697.9** | | Gross profit | $81.3 | $82.9 | $158.2 | $172.1 | | (Loss) income from operations | $(10.7) | $17.3 | $(4.4) | $34.9 | | Net (loss) income | $(14.0) | $13.2 | $(10.7) | $25.3 | | **Diluted EPS** | **$(0.61)** | **$0.58** | **$(0.47)** | **$1.11** | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (in millions) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash, cash equivalents and restricted cash | $63.2 | $63.2 | | Inventories, net | $455.3 | $455.6 | | Total current assets | $778.8 | $719.5 | | Total assets | $1,107.0 | $1,059.3 | | Total current liabilities | $311.2 | $299.0 | | Long-term debt | $125.0 | $72.0 | | Total equity | $633.3 | $653.7 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash Flow Summary for Six Months Ended June 30 (in millions) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(36.1) | $(2.5) | | Net cash (used in) provided by investing activities | $(12.6) | $2.6 | | Net cash provided by (used in) financing activities | $49.5 | $(22.0) | | Change in cash, cash equivalents and restricted cash | $0.0 | $(21.5) | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=GAAP%20vs%20Non-GAAP%20Reconciliations) This section reconciles U.S. GAAP to non-GAAP financial measures, adjusting for non-core items to reflect core performance - The company excludes costs it does not believe are indicative of core business operations, including transformation program costs, restructuring charges, and goodwill impairment[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) [Adjusted Income from Operations Reconciliation](index=12&type=section&id=GAAP%20vs%20Non-GAAP%20Adjusted%20Income%20from%20Operations%20Reconciliations) Reconciliation of (Loss) Income from Operations to Adjusted (in millions) | | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | (Loss) income from operations (GAAP) | $(10.7) | $17.3 | | Transformation program | $11.2 | $7.8 | | Restructuring and other related charges | $0.9 | $0.4 | | Goodwill impairment | $20.2 | - | | **Adjusted income from operations (Non-GAAP)** | **$21.4** | **$26.2** | | **Adjusted operating margin** | **6.2%** | **7.5%** | [Adjusted EPS Reconciliation](index=13&type=section&id=GAAP%20vs%20Non-GAAP%20Adjusted%20EPS%20Reconciliations) Reconciliation of Diluted EPS to Adjusted EPS | | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Diluted EPS (GAAP) | $(0.61) | $0.58 | | Transformation program | $0.49 | $0.34 | | Restructuring and other related charges | $0.03 | $0.01 | | Goodwill impairment | $0.89 | - | | Income tax impact of adjustments | $(0.18) | $(0.09) | | **Adjusted EPS (Non-GAAP)** | **$0.61** | **$0.87** | [EBITDA and Adjusted EBITDA Reconciliation](index=14&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliations) Reconciliation of Net (Loss) Income to Adjusted EBITDA (in millions) | | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net (loss) income (GAAP) | $(14.0) | $13.1 | | Interest, Taxes, D&A | $9.6 | $10.4 | | EBITDA | $(4.4) | $23.5 | | Transformation program | $11.1 | $7.6 | | Goodwill impairment | $20.2 | - | | Other adjustments | $0.7 | $1.1 | | **Adjusted EBITDA (Non-GAAP)** | **$27.6** | **$32.2** | | **Adjusted EBITDA margin** | **8.0%** | **9.2%** |

Second Quarter 2024 Overview (all comparisons are made to the corresponding prior year second quarter unless otherwise specified): Net sales of $345.5 million decreased 1.3% from the record sales in the prior year.Implied orders increased 5.9% sequentially from the first quarter.Inventory initiatives drove $28.7 million sequential reduction from the first quarter.Diluted EPS of $(0.61), which included an $0.89 per share impact related to goodwill impairment, compared to $0.58; Adjusted EPS of $0.61 compared ...

Core Points - Astec Industries, Inc. declared a quarterly dividend of $0.13 per share, payable on or about August 30, 2024, to shareholders of record as of the close of business on August 12, 2024 [1] Company Overview - Astec is a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production [1] - The company's manufacturing operations are divided into two primary business segments: - Infrastructure Solutions, which includes road building, asphalt and concrete plants, thermal and storage solutions - Materials Solutions, which includes aggregate processing equipment [1]

CHATTANOOGA, Tenn., July 15, 2024 (GLOBE NEWSWIRE) -- You are invited by Astec Industries, Inc. (NASDAQ:ASTE) to participate in a conference call to review the company's second quarter 2024 financial results. Astec Industries, Inc. will be releasing the company's second quarter results to the wire service on Wednesday, August 7, 2024 at approximately 7:00 a.m. Eastern Time. The live call will begin on Wednesday, August 7, 2024 at 8:30 a.m. Eastern Time. Jaco van der Merwe, President and Chief Executive Offi ...

CHATTANOOGA, Tenn., July 15, 2024 (GLOBE NEWSWIRE) -- You are invited by Astec Industries, Inc. (NASDAQ:ASTE) to participate in a conference call to review the company’s second quarter 2024 financial results. Astec Industries, Inc. will be releasing the company’s second quarter results to the wire service on Wednesday, August 7, 2024 at approximately 7:00 a.m. Eastern Time. The live call will begin on Wednesday, August 7, 2024 at 8:30 a.m. Eastern Time. Jaco van der Merwe, President and Chief Executive Offi ...