Financial Performance - Net sales for Q1 2024 were $309.2 million, a decrease of 11.1% from $347.9 million in Q1 2023[87] - Gross profit for Q1 2024 was $76.9 million, representing 24.9% of net sales, down from $89.2 million or 25.6% in Q1 2023, a decrease of 13.8%[99] - Net income attributable to Astec decreased by $8.7 million to $3.4 million in Q1 2024, with diluted earnings per share falling 71.7% to $0.15[87] - Domestic sales in Q1 2024 were $243.2 million, accounting for 78.7% of consolidated net sales, down 13.5% from $281.3 million in Q1 2023[97] Backlog and Orders - Backlog as of March 31, 2024, was $559.8 million, a decrease of 30.0% from $800.2 million a year earlier[106] - The company experienced a decrease in order backlog driven by macroeconomic factors such as higher inflation and increased interest rates[107] Segment Performance - Infrastructure Solutions segment sales decreased to $202.2 million in Q1 2024 from $215.5 million in Q1 2023, a decline of $13.3 million or 6.2%[109] - Materials Solutions segment sales fell to $107.0 million in Q1 2024 from $132.2 million in Q1 2023, a decrease of $25.2 million or 19.1%[111] - Domestic sales in the Infrastructure Solutions segment decreased by $6.1 million or 3.2% in Q1 2024 compared to Q1 2023, while international sales dropped by $7.2 million or 30.6%[110] - Segment Operating Adjusted EBITDA for Infrastructure Solutions was $25.6 million in Q1 2024, down from $28.5 million in Q1 2023, a decrease of $2.9 million or 10.2%[115] - Segment Operating Adjusted EBITDA for Materials Solutions decreased to $5.3 million in Q1 2024 from $14.6 million in Q1 2023, a decline of $9.3 million or 63.7%[116] Expenses and Costs - Selling, general and administrative expenses increased by $3.5 million, or 5.2%, to $71.4 million in Q1 2024, representing 23.1% of net sales[100] - Interest expense rose to $2.7 million in Q1 2024 from $2.0 million in Q1 2023, primarily due to higher average outstanding borrowings[103] - The company anticipates total costs for ERP implementation to be between $125 million and $150 million, with annual costs of $25 to $30 million expected through 2025[88] - The company has capitalized $34.5 million in deferred implementation costs related to the ERP system, which are being amortized over the contract term[90] Liquidity and Cash Flow - Total liquidity as of March 31, 2024, was $170.5 million, consisting of $55.3 million in cash and cash equivalents and $115.2 million available for additional borrowings[118] - Net cash used in operating activities increased by $27.8 million in Q1 2024 compared to Q1 2023, primarily due to higher cash usages for operating assets and liabilities[127] - Net cash provided by financing activities was $48.4 million in Q1 2024, compared to a net cash use of $16.2 million in Q1 2023, primarily due to increased borrowings[130] Capital Expenditures and Share Repurchase - The company anticipates capital expenditures between $25.0 million and $35.0 million for the year ending December 31, 2024[124] - As of March 31, 2024, $115.7 million remains available for repurchase under the approved share repurchase program[132] Current Assets and Liabilities - Total current assets increased to $778.8 million as of March 31, 2024, from $719.5 million as of December 31, 2023, representing an increase of $59.3 million, or 8.2%[133] - Total current liabilities rose to $310.4 million as of March 31, 2024, from $299.0 million as of December 31, 2023, an increase of $11.4 million, or 3.8%[134] - The increase in current assets was primarily due to a $39.3 million rise in trade and other receivables, including a $13.7 million receivable related to a pending litigation settlement[133] - Inventory increased by $28.4 million, while cash, cash equivalents, and restricted cash decreased by $5.1 million[133] - The rise in current liabilities was mainly due to a net increase of $11.3 million in other current liabilities, including $13.7 million related to the pending litigation settlement[134] - Customer deposits increased by $9.8 million, partially offset by a decrease of $8.0 million in accrued employee-related liabilities[134] Market Risk - Market risk exposures have not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2023[135]

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]

Core Viewpoint - Astec Industries, Inc. is set to release its first quarter 2024 financial results on May 1, 2024, followed by a conference call to discuss these results [1]. Group 1: Financial Results Announcement - The financial results will be released on May 1, 2024, at approximately 7:00 a.m. Eastern Time [1]. - A live conference call will take place on the same day at 8:30 a.m. Eastern Time, 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 a link provided for access [1]. - A replay of the call can be accessed until May 15, 2024, using specific dialing instructions and a Conference ID [2]. Group 3: Company Overview - Astec is a manufacturer specializing in equipment for asphalt road building, aggregate processing, and concrete production [3]. - The company operates in two primary business segments: Infrastructure Solutions and Materials Solutions [3].

Core Viewpoint - Astec Industries, Inc. is set to release its first quarter 2024 financial results on May 1, 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 May 1, 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 of the call will be available through a provided link, and an archived version will be accessible for ninety days on the company's website [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].

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores categorize stocks based on value, growth, and momentum characteristics, assigning ratings from A to F [2] - Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [2] - Growth Score emphasizes a company's financial health and future growth potential based on earnings and cash flow [3] - Momentum Score assesses stocks based on price trends and earnings estimate changes to identify favorable investment opportunities [3] - VGM Score combines all three Style Scores to provide a comprehensive evaluation of stocks [4] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to guide investors in building successful portfolios, with 1 (Strong Buy) stocks historically yielding an average annual return of +25.41% since 1988 [5] - Investors are encouraged to select stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal investment potential [6] Company Spotlight: Astec Industries (ASTE) - Astec Industries, based in Chattanooga, TN, specializes in manufacturing road building equipment [7] - Currently rated 3 (Hold) by Zacks, Astec has a VGM Score of A and a Momentum Style Score of B, with shares increasing by 16.5% in the past four weeks [7] - The earnings estimate for fiscal 2024 has been revised upward by one analyst, with the Zacks Consensus Estimate now at $2.90 per share, reflecting an average earnings surprise of 10.9% [7]

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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Core Viewpoint - Astec Industries, Inc. reported a mixed performance in Q4 2023, with adjusted earnings per share exceeding expectations, but revenues falling short of estimates, indicating challenges in the market despite improved profitability metrics [1][2][6]. Revenue & Backlog - Revenues decreased by 3.6% year over year to $337 million, missing the Zacks Consensus Estimate of $353 million [2] - Domestic sales increased by 1.5% year over year, while international sales declined by 24.7% [2] - The backlog stood at $570 million, reflecting a year-over-year decline of 37.6%, with domestic backlog down 41.8% to $450 million and international backlog up 14.1% to $120 million [2] Operating Performance - Cost of sales fell by 11% year over year to $248 million, leading to a gross profit of $89 million compared to $71 million in the prior year [3] - The gross margin improved to 26.4% from 20.3% in the previous year [3] - SG&A expenses increased by 10.3% year over year to approximately $70 million [3] - Adjusted operating income rose to $26.3 million from $14.7 million in the prior year, with an adjusted operating margin of 7.8% compared to 4.2% [3] - Adjusted EBITDA was $33 million, up from $22 million in the previous year, with an adjusted EBITDA margin of 9.7% compared to 6.3% [3] Segment Performances - Infrastructure Solutions segment revenues increased by 0.7% to $240 million, with adjusted EBITDA rising by 52.8% to $35.3 million [4] - Materials Solutions segment revenues fell by 13.1% to $95 million due to softer demand, with adjusted EBITDA down 8.2% to $8.9 million [4] Financial Position - At the end of 2023, cash and cash equivalents totaled $63 million, down from $66 million at the end of 2022 [5] - Long-term debt decreased to $72 million from $78 million at the end of 2022 [5] 2023 Performance - Adjusted EPS for 2023 was $2.67, up from $1.23 in the prior year, beating the Zacks Consensus Estimate of $2.39 [6] - Sales increased by 5% year over year to $1.34 billion, but missed the Zacks Consensus Estimate of $1.35 billion [6] Price Performance - ASTE shares have declined by 13% over the past year, contrasting with the industry's growth of 36.5% [7]