Astec Industries, Inc. (ASTE) reported first-quarter 2024 adjusted earnings per share of 34 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line also marked a 62% decline from earnings per share of 90 cents in the prior-year quarter.Including one-time items, the company’s earnings of 15 cents per share in the quarter under review compared with earnings of 53 cents in the year-ago quarter.Revenues & BacklogAstec’s revenues decreased 11.1% year over year to $309 million in the quarter unde ...

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 March 31, 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 ...

Financial Data and Key Metrics Changes - The company reported net sales of $309.2 million, a decrease of 11.1% compared to the previous year, primarily due to finance capacity constraints and supply chain delays [22][24] - Gross margin was reported at 24.9%, with adjusted EBITDA declining by 46.3% to $18.9 million, and adjusted EBITDA margin decreasing by 400 basis points to 6.1% [23][26] - Adjusted EPS was $0.34, down 62.2% from $0.90 in the prior year, while GAAP EPS was $0.15 compared to $0.53 [23][24] Business Line Data and Key Metrics Changes - Infrastructure Solutions net sales decreased by 6.2% to $202.2 million, impacted by supply chain delays, while parts sales increased by 17.7% [14][24] - Materials Solutions net sales fell by 19.1% to $107 million, driven by lower equipment sales and finance capacity constraints [15][25] - Segment operating adjusted EBITDA margin for Infrastructure Solutions decreased by 50 basis points to 12.7%, while Materials Solutions saw a decrease of 600 basis points to 5% [14][15] Market Data and Key Metrics Changes - Domestic sales decreased by 13.5% or $38.1 million, while international sales saw a slight decrease of 0.9% or $0.6 million [22] - Federal highway and pavement contract awards increased by 11% year-over-year, with total state budgets up 12% year-over-year, indicating strong demand for asphalt and concrete production equipment [15] Company Strategy and Development Direction - The company is transitioning to a new strategic framework focused on empowering employees, customer-centric innovation, and operational excellence [11][12] - The new strategic roadmap aims to build on past successes and drive sustainable value creation through innovation and improved operational efficiencies [12][13] - The company is taking actions to address challenges in the Materials Solutions segment through targeted cost reduction initiatives [7][8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging first quarter due to market headwinds but expressed optimism about strong demand for asphalt and concrete plants moving forward [9][10] - The company anticipates that supply chain issues will lessen as 2024 progresses, and they are encouraged by the positive sentiment from customers [10][28] - Management remains confident in the fundamentals of the business, particularly in Infrastructure Solutions, and expects to see improved margins in the future [28] Other Important Information - The company's backlog approached historic levels at $559.8 million, with Infrastructure Solutions backlog at $372.7 million, a 2.1% increase sequentially [10][17] - The company has a disciplined capital deployment framework, with $5.8 million spent on capital expenditures in Q1 to enhance capacity and efficiency [27] Q&A Session Summary Question: How did the quarter progress, and what are the expectations for April? - Management noted that shipments in Materials Solutions were slower than expected, but parts sales were strong. April showed encouraging order intake for asphalt and concrete plants [30][31] Question: Can you clarify the revenue outlook given the current order intake? - Management reaffirmed the outlook of flat to single-digit revenue growth, emphasizing the importance of Infrastructure Solutions, which constitutes two-thirds of the business [32][33] Question: What are the expectations for margins in the Materials Solutions segment? - Management indicated that while margins were under pressure, they expect improvements as inventory issues are resolved and market conditions stabilize [34][35] Question: What are the supply chain challenges faced in Q1? - Management highlighted specific electronic components as a challenge but noted that alternative suppliers are being sourced to mitigate future risks [52][53] Question: How is the company addressing cash conversion and receivables? - Management acknowledged an increase in receivables due to strong parts sales and emphasized the quality of receivables, indicating low risk in aging [56][60] Question: What is the competitive environment like regarding pricing? - Management observed that larger competitors are offering attractive financing options, but they are managing pricing proactively and expect stable pricing moving forward [64][66]

Sales Performance - Net sales decreased 11.1% to $309.2 million, with domestic sales down 13.5% and international sales down 0.9%[3] - Net sales for Q1 2024 decreased to $309.2 million, down 11.1% from $347.9 million in Q1 2023[17] - Infrastructure Solutions segment net sales declined by 6.2% to $202.2 million, while Materials Solutions segment net sales dropped 19.1% to $107.0 million[19] - Net sales for Q1 2024 were $309.2 million, a decrease from $347.9 million in Q1 2023[32] Backlog and Orders - Backlog decreased 30.0% to $559.8 million, with domestic backlog down 36.2% and international backlog up 6.6%[3] - Implied orders increased 2.4% sequentially from the fourth quarter[1] Earnings and Profitability - Diluted EPS of $0.15 compared to $0.53; Adjusted EPS of $0.34 compared to $0.90[1] - Net income attributable to controlling interest fell to $3.4 million in Q1 2024, compared to $12.1 million in Q1 2023[17] - Segment Operating Adjusted EBITDA decreased by 46.0% to $18.9 million in Q1 2024 from $35.2 million in Q1 2023[19] - Net income attributable to controlling interest for Q1 2024 was $3.4 million, compared to $12.1 million in Q1 2023[30] - Adjusted net income attributable to controlling interest for Q1 2024 was $7.8 million, down from $20.5 million in Q1 2023[30] - Diluted EPS for Q1 2024 was $0.15, compared to $0.53 in Q1 2023[30] - Adjusted EPS for Q1 2024 was $0.34, down from $0.90 in Q1 2023[30] - EBITDA for Q1 2024 was $13.4 million, compared to $24.3 million in Q1 2023[32] - EBITDA margin for Q1 2024 was 4.3%, down from 7.0% in Q1 2023[32] - Adjusted EBITDA for Q1 2024 was $18.9 million, compared to $35.2 million in Q1 2023[32] - Adjusted EBITDA margin for Q1 2024 was 6.1%, down from 10.1% in Q1 2023[32] Segment Performance - Infrastructure Solutions net sales decreased 6.2% to $202.2 million, with Segment Operating Adjusted EBITDA margin decreasing 50 basis points to 12.7%[6] - Materials Solutions net sales decreased 19.1% to $107.0 million, with Segment Operating Adjusted EBITDA margin decreasing 600 basis points to 5.0%[7] Liquidity and Financial Position - Total liquidity was $170.5 million, consisting of $55.3 million in cash and cash equivalents and $115.2 million available under the revolving credit facility[8] - Total assets increased to $1,123.0 million as of March 31, 2024, up from $1,059.3 million at the end of 2023[24] - Long-term debt rose to $125.0 million as of March 31, 2024, compared to $72.0 million at the end of 2023[24] - Net cash used in operating activities was $47.0 million in Q1 2024, compared to $19.2 million in Q1 2023[26] - Cash, cash equivalents and restricted cash decreased to $58.1 million at the end of Q1 2024 from $63.2 million at the end of 2023[29] Capital Expenditures and Investments - Capital expenditure investments to increase capacity and improve efficiency were $5.8 million[9] Restructuring and Transformation Costs - Transformation program costs were $6.3 million in Q1 2024, down from $7.2 million in Q1 2023[23] - Restructuring and other related charges decreased to $0.1 million in Q1 2024 from $7.1 million in Q1 2023[23] Industry and Market Trends - Federal highway and pavement contract awards increased 11% year-over-year[1] - Record attendance at 2024 World of Asphalt/Agg1 trade show, with a 38% increase over the previous record set in 2022[4]

CHATTANOOGA, Tenn., April 08, 2024 (GLOBE NEWSWIRE) -- You are invited by Astec Industries, Inc. (NASDAQ:ASTE) to participate in a conference call to review the company’s first quarter 2024 financial results. Astec Industries, Inc. will be releasing the company’s first quarter results to the wire service on Wednesday, May 1, 2024 at approximately 7:00 a.m. Eastern Time. The live call will begin on Wednesday, May 1, 2024 at 8:30 a.m. Eastern Time. Jaco van der Merwe, President and Chief Executive Officer, He ...

CHATTANOOGA, Tenn., April 08, 2024 (GLOBE NEWSWIRE) -- You are invited by Astec Industries, Inc. (NASDAQ:ASTE) to participate in a conference call to review the company's first quarter 2024 financial results. Astec Industries, Inc. will be releasing the company's first quarter results to the wire service on Wednesday, May 1, 2024 at approximately 7:00 a.m. Eastern Time. The live call will begin on Wednesday, May 1, 2024 at 8:30 a.m. Eastern Time. Jaco van der Merwe, President and Chief Executive Officer, He ...

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One stock that might be an intriguing choice for investors right now is Astec Industries, Inc. (ASTE) . This is because this security in the Manufacturing - Construction and Mining space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably ...

The Zacks Manufacturing - Construction and Mining industry is well positioned to gain from the stepped-up infrastructure investment spending in the United States and solid demand from the mining sector, fueled by the energy transition trend. Indications of easing supply-chain issues raise optimism.Players like Caterpillar Inc. (CAT) , Komatsu (KMTUY) , H&E Equipment Services (HEES) and Astec Industries, Inc. (ASTE) are likely to ride on the demand trends. These stocks are likely to benefit from efforts to b ...

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