| --- | --- | --- | |---------------------------------------------------------|-------|-------| | | | | | Second Quarter Earnings BUILT TO CONNECT August 7, 2024 | | | | --- | --- | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ...

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]

Core Viewpoint - Astec Industries, Inc. is set to release its second quarter 2024 financial results on August 7, 2024, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results will be released to the wire service at approximately 7:00 a.m. Eastern Time on August 7, 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, Interim CFO, and Senior VP of Administration and Investor Relations [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 will also be available, with an archived version accessible for ninety days post-call [1][2]. Group 3: Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production, divided into two primary business segments: Infrastructure Solutions and Materials Solutions [3].

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 ...

Core Viewpoint - Investors in Astec Industries, Inc. (ASTE) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Dec 20, 2024 $22.5 Put option [1] Company Analysis - Astec Industries is currently rated as a Zacks Rank 5 (Strong Sell) within the Manufacturing - Construction and Mining industry, which is positioned in the bottom 23% of the Zacks Industry Rank [3] - Over the past 60 days, no analysts have increased earnings estimates for the current quarter, while one analyst has decreased the estimates, leading to a reduction in the Zacks Consensus Estimate from 84 cents per share to 72 cents [3] Options Market Insights - The high implied volatility in Astec's options suggests that traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][3] - Options traders often seek to capitalize on high implied volatility by selling premium, aiming for the underlying stock to not move as much as initially expected by expiration [3]

Core Points - The United States District Court for the Eastern District of Tennessee has approved a proposed class action settlement for purchasers of Astec Industries, Inc. common stock [1] - The settlement amount is $13,700,000, and a hearing is scheduled for September 5, 2024, to determine the fairness and adequacy of the settlement [5] - The settlement affects individuals who purchased Astec common stock between July 26, 2016, and October 22, 2018 [4][6] Settlement Details - The proposed settlement includes a plan for distributing the settlement proceeds, which will be evaluated for fairness [5] - Lead Counsel is requesting attorneys' fees of up to one-third of the settlement amount, plus interest, and reimbursement of expenses not exceeding $330,000 [5] - A service payment of no more than $15,000 is proposed for the Lead Plaintiff [5] Claim Process - Individuals wishing to participate in the settlement must submit a Claim Form by August 8, 2024 [6] - Those who wish to be excluded from the settlement class must also submit a request for exclusion by the same date [7] - Objections to the settlement must be submitted by August 8, 2024, following the procedures outlined in the detailed Notice [7]

Core Insights - Astec Industries, Inc. will participate in the Stifel 2024 Cross Sector Insight Conference on June 4th and 5th, 2024 [1] - Key executives including the President and CEO, Interim CFO, and Senior VP of Investor Relations will present and engage in one-on-one meetings [1] - The presentation is scheduled for June 4, 2024, from 4:45 to 5:15 PM Eastern time [1] Company Overview - Astec is a manufacturer of specialized equipment for asphalt road building, aggregate processing, and concrete production [2] - The company's operations are divided into two main segments: Infrastructure Solutions and Materials Solutions [2] - Infrastructure Solutions includes road building, asphalt and concrete plants, and thermal and storage solutions, while Materials Solutions encompasses aggregate processing and mining equipment [2]

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 ...