Astec Industries(US:ASTE)2021-08-05 20:18Financial Performance - Net sales for Q2 2021 were $278.0 million, an increase of 4.8% compared to $265.3 million in Q2 2020[97] - Gross profit for Q2 2021 was $67.0 million, reflecting a 12.4% increase[97] - The company experienced a net income attributable to Astec of $9.0 million, a decrease of 3.2% compared to the previous year[97] - Selling, general and administrative expenses rose by $10.7 million or 28.7% to $48.0 million, accounting for 17.3% of net sales in Q2 2021, compared to 14.1% in Q2 2020[119] - The effective income tax rate for Q2 2021 was 20.4%, up from 16.1% in Q2 2020, primarily due to changes in jurisdictional income and loss[124] Sales and Orders - The backlog of orders as of June 30, 2021, was $436.1 million, an increase of $254.2 million or 139.7% from $181.9 million in June 2020[104] - Domestic sales for Q2 2021 were $201.4 million, representing 72.4% of consolidated net sales, a decrease of $20.3 million or 9.2% from Q2 2020[114] - International sales for Q2 2021 were $76.6 million, representing 27.6% of consolidated net sales, a 75.7% increase from $43.6 million or 16.4% in Q2 2020[116] - Incremental sales from acquired businesses contributed $14.6 million to Q2 2021 net sales[112] - Infrastructure Solutions segment sales for Q2 2021 were $180.2 million, a decrease of $1.7 million or 0.9% from $181.9 million in Q2 2020[127] - Materials Solutions segment sales for Q2 2021 increased by $14.4 million or 17.3% to $97.8 million compared to $83.4 million in Q2 2020[128] Production and Operational Challenges - Labor shortages and supply chain constraints negatively affected production throughput, leading to lower equipment sales[115] - The company is focused on adjusting production schedules and enhancing recruitment processes to address labor shortages[110] - Costs associated with the strategic transformation initiative, Simplify, Focus and Grow (SFG), were $2.1 million for Q2 2021[102] Segment Performance - Infrastructure Solutions segment profit decreased to $11.8 million in Q2 2021 from $14.2 million in Q2 2020, a decline of $2.4 million or 16.9%[131] - Materials Solutions segment profit increased to $12.8 million in Q2 2021 from $8.5 million in Q2 2020, an increase of $4.3 million or 50.6%[132] - For the first six months of 2021, Infrastructure Solutions segment profit was $32.8 million, up from $31.4 million in the same period of 2020, an increase of $1.4 million or 4.5%[133] - Materials Solutions segment profit for the first six months of 2021 was $19.3 million, compared to $14.5 million in the same period of 2020, an increase of $4.8 million or 33.1%[134] Cash Flow and Assets - Net cash provided by operating activities decreased by $54.4 million for the first six months of 2021, totaling $30.5 million compared to $84.9 million in the same period of 2020[140] - Total current assets increased to $634.5 million as of June 30, 2021, up from $565.8 million as of December 31, 2020, an increase of $68.7 million or 12.1%[144] - Total current liabilities increased to $207.8 million as of June 30, 2021, up from $170.3 million as of December 31, 2020, an increase of $37.5 million or 22.0%[144] Market Risk Management - Market risk exposures have not materially changed since the Annual Report on Form 10-K for the year ended December 31, 2020 was filed[149] - Quantitative and qualitative disclosures about market risk are incorporated by reference from Part II, "Item 7A" of the Annual Report[149] - The disclosures provide insights into the company's market risk management strategies[149] - The company continues to monitor market risk factors that could impact financial performance[149] - No significant new market risks have been identified since the last report[149] - The company remains committed to transparency in its market risk disclosures[149] - Historical data from the previous fiscal year is referenced for comparative analysis[149] - The company emphasizes the importance of understanding market risk in its financial reporting[149] - The Annual Report serves as a key resource for stakeholders to assess market risk[149] - Ongoing evaluations of market conditions are part of the company's risk management framework[149]