Astec Industries(US:ASTE)2024-05-02 20:16Financial 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]