Fourth Quarter Earnings March 1, 2023 Safe Harbor Certain statements contained in this presentation contain forward-looking statements within the meaning of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Such statements relate to, among other things, income, earnings, cash flows, changes in operations, operating improvements, businesses in which we operate and the United States and global economies. Statement ...

Financial Data and Key Metrics Changes - Sales in Q3 2022 reached $315.2 million, an increase of 18.1% compared to the previous year, marking the highest third-quarter sales in the company's history [6][15] - Adjusted EBITDA increased by 1.2% to $16.6 million, while the adjusted EBITDA margin decreased by 80 basis points to 5.3% due to higher manufacturing costs and increased SG&A expenses [16][19] - Adjusted earnings per share was $0.28, impacted by inflationary pressures in material and labor [17] Business Line Data and Key Metrics Changes - Infrastructure Solutions sales increased by 15.7% to $201.9 million, with domestic sales up 16% and international sales up 14.4% [12][18] - Materials Solutions sales grew by 21% to $111.8 million, driven by a 31.8% increase in equipment sales, while parts sales increased by 4.3% [12][18] Market Data and Key Metrics Changes - Domestic sales increased by 23.6%, while international sales remained constant [15] - Backlog increased by 56.2%, with Material Solutions growing by 31.2% and Infrastructure Solutions surging by 75.8% [15] Company Strategy and Development Direction - The company is focused on a strategic transformation through a global technology platform to enhance automation and process efficiency [9] - The "Simplify, Focus and Grow" strategy aims to drive profitable growth and improve the business and earnings profile [9][14] - The company is committed to sustainability, supporting initiatives like the National Asphalt Paving Association's program for zero carbon emission asphalt pavements by 2050 [14] Management's Comments on Operating Environment and Future Outlook - Management noted robust market demand across segments despite softening macroeconomic indicators, with customer sentiment remaining positive [6][11] - The company expects improvements in margins and revenue as supply chain challenges normalize and inflationary pressures stabilize [12][33] - Management expressed confidence in future growth driven by federal funding from the Federal Highway Bill and ongoing infrastructure investments [11][49] Other Important Information - The company announced an 8.3% increase in its quarterly dividend to $0.13 per share and repurchased $6.1 million worth of shares [8][21] - The Oracle transformation project is expected to enhance operational efficiency and is set to be implemented across all global sites by 2025 [22] Q&A Session Summary Question: Can you provide details on the ERP implementation and its financial implications? - Management indicated that the ERP implementation will primarily be expensed, with a total program cost in the $150 million range, including some capital expenses for facility transformation [28][30] Question: How do you view inflation figures moving forward? - Management noted that pricing has begun to outpace inflation, with expectations for continued pricing realization through Q4 and into 2023 [32][33] Question: What is the outlook for gross margins into 2023? - Management stated that gross margins will be influenced by supply chain improvements, with expectations to recover margins as supply chain issues are resolved [39][40] Question: What is driving the strong order intake in Materials Solutions? - Management highlighted that the current ordering period and customer confidence in infrastructure spending are contributing to strong order intake [41][44] Question: How are component shortages affecting operations? - Management acknowledged ongoing challenges with specific components but noted improvements in supply chain conditions overall [46][47] Question: What are the expectations for federal highway spending? - Management confirmed that customers are beginning to see funds flow from federal programs, with expectations for significant project activity in 2023 and 2024 [49][57] Question: What are the updated CapEx expectations for this year and next? - Management revised the CapEx expectation for this year to $35 million to $45 million, with a similar range anticipated for 2023, focusing on automation projects [53][55]

Astec Industries, Inc. (NASDAQ:ASTE) Q2 2022 Earnings Conference Call August 2, 2022 8:30 AM ET Company Participants Steve Anderson - SVP and IR Barry Ruffalo - CEO Becky Weyenberg - CFO Conference Call Participants Stanley Elliott - Stifel Brian Sponheimer - Gabelli Operator Good morning, my name is Dennis and I will be your conference operator today. At this time, I would like to welcome everyone to the Astec Second Quarter 2022 Earnings Conference Call. [Operator Instructions] I would now like to turn th ...

Astec Industries, Inc. (NASDAQ:ASTE) Q1 2022 Earnings Conference Call May 4, 2022 8:30 AM ET Company Participants Steve Anderson - Senior Vice President, Administration and Investor Relations Barry Ruffalo - President and Chief Executive Officer Becky Weyenberg - Chief Financial Officer Conference Call Participants Joe Grabowski - Robert W. Baird & Co, Inc. Steve Ferazani - Sidoti & Company Operator Good day, and thank you for standing by welcome to the Astec reports First Quarter 2022 results call. [Operat ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Unaudited Q1 2022 financial statements reflect increased net sales, decreased net income and EPS, asset growth driven by inventories, prior period error corrections, and a subsequent acquisition Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Current Assets** | $675.7 | $636.0 | | Inventories | $352.9 | $298.7 | | **Total Assets** | **$943.4** | **$905.8** | | **Total Current Liabilities** | $256.5 | $223.3 | | **Total Liabilities** | $286.0 | $254.5 | | **Total Equity** | **$657.4** | **$651.3** | Consolidated Statement of Operations Highlights (in millions, except per share data) | Account | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Sales | $291.2 | $284.4 | | Gross Profit | $66.1 | $68.2 | | Income from Operations | $5.4 | $9.5 | | Net Income Attributable to Controlling Interest | $4.1 | $8.5 | | **Diluted EPS** | **$0.18** | **$0.37** | Consolidated Statement of Cash Flows Highlights (in millions) | Cash Flow Activity | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(9.6) | $14.6 | | Net cash used in investing activities | $(11.7) | $(3.0) | | Net cash used in financing activities | $(2.3) | $(5.6) | | **(Decrease) increase in cash** | **$(22.7)** | **$6.0** | - In Q1 2022, the company identified and corrected immaterial errors from prior periods (2018-2021) related to an overstatement of work-in-process inventory and over-time revenue recognition calculation errors, with prior period financial statements revised accordingly[37](index=37&type=chunk)[38](index=38&type=chunk) - In April 2022, the company acquired MINDS Automation Group, Inc., a leader in asphalt plant automation control systems, for **$18.2 million** in cash[103](index=103&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial performance, noting increased net sales, decreased profitability due to inflation, record backlog growth, ongoing strategic transformation costs, and persistent operational headwinds Q1 2022 vs Q1 2021 Performance (in millions) | Metric | Q1 2022 | Q1 2021 | Change (%) | | :--- | :--- | :--- | :--- | | Net Sales | $291.2 | $284.4 | +2.4% | | Gross Profit | $66.1 | $68.2 | -3.1% | | Income from Operations | $5.4 | $9.5 | -43.2% | | Diluted EPS | $0.18 | $0.37 | -51.4% | - Backlog increased **98.4%** to **$834.7 million** as of March 31, 2022, from **$420.8 million** a year prior, driven by pent-up demand, dealer inventory replenishment, and the U.S. IIJA[119](index=119&type=chunk)[132](index=132&type=chunk) - The ongoing Simplify, Focus and Grow (SFG) strategic transformation, including ERP system implementation and lean manufacturing initiatives, incurred costs of **$5.3 million** in Q1 2022[113](index=113&type=chunk)[115](index=115&type=chunk) - The company faces significant operational headwinds from the COVID-19 pandemic's contributory effects, including material price inflation, increased shipping costs, supply chain disruptions, and labor shortages[116](index=116&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) Segment Sales and Operating Adjusted EBITDA (in millions) | Segment | Q1 2022 Sales | Q1 2021 Sales | Q1 2022 Adj. EBITDA | Q1 2021 Adj. EBITDA | | :--- | :--- | :--- | :--- | :--- | | Infrastructure Solutions | $197.5 | $201.5 | $16.4 | $26.2 | | Materials Solutions | $93.7 | $82.9 | $12.2 | $9.7 | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's market risk exposures have not materially changed since the disclosures made in its Annual Report on Form 10-K for the year ended December 31, 2021 - There have been no material changes to the company's market risk exposures since the filing of the 2021 Form 10-K[155](index=155&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of March 31, 2022, with no material changes in internal control over financial reporting during the quarter - Based on an evaluation as of the end of the reporting period, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective[156](index=156&type=chunk) - No changes occurred during the first quarter of 2022 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[157](index=157&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=35&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in legal actions in the ordinary course of business, with management not expecting any pending litigation to have a material adverse effect beyond prior disclosures - The company reports no new pending or threatened litigation that management believes will result in a materially adverse outcome, beyond what was disclosed in the 2021 Annual Report and Note 8 of this report[158](index=158&type=chunk) [Item 1A. Risk Factors](index=35&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021, and investors are advised to consider those factors - The report refers to the risk factors discussed in the Annual Report on Form 10-K for the year ended December 31, 2021, and indicates no material changes[159](index=159&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[160](index=160&type=chunk) [Item 3. Defaults Upon Senior Securities](index=36&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None reported[160](index=160&type=chunk) [Item 4. Mine Safety Disclosures](index=36&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) The company provided no mine safety disclosures for the period - None reported[160](index=160&type=chunk) [Item 5. Other Information](index=36&type=section&id=Item%205.%20Other%20Information) The company reported no other information for the period - None reported[160](index=160&type=chunk) [Item 6. Exhibits](index=36&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including severance agreements, CEO/CFO certifications (Sections 302 and 906), and iXBRL data files - Exhibits filed include severance agreements for executives, certifications by the CEO and CFO pursuant to Sarbanes-Oxley Sections 302 and 906, and financial statements formatted in iXBRL[161](index=161&type=chunk)