Workflow
Astec Reports Third Quarter 2024 Results
ASTEAstec Industries(ASTE) GlobeNewswire News Room·2024-11-06 12:01

Core Insights - Astec Industries, Inc. reported a net sales decrease of 3.9% to 291.4millioninQ32024comparedtoQ32023,withanetlossof291.4 million in Q3 2024 compared to Q3 2023, with a net loss of 6.2 million, which included an 8.4millionchargerelatedtoalitigationsettlement[1][2][3]−Adjustednetincomeforthequarterwas8.4 million charge related to a litigation settlement [1][2][3] - Adjusted net income for the quarter was 7.0 million, with adjusted EBITDA increasing by 74.0% to 17.4million[1][3][32]−Thecompanyexperiencedmixedresultsacrossitssegments,withInfrastructureSolutionsshowingsalesandmargingrowth,whileMaterialsSolutionsfacedchallengingmarketconditions[2][6][7]FinancialPerformance−Netsales:17.4 million [1][3][32] - The company experienced mixed results across its segments, with Infrastructure Solutions showing sales and margin growth, while Materials Solutions faced challenging market conditions [2][6][7] Financial Performance - Net sales: 291.4 million in Q3 2024 vs. 303.1millioninQ32023,adecreaseof3.9303.1 million in Q3 2023, a decrease of 3.9% [1][17] - Domestic sales decreased by 8.0% to 211.2 million, while international sales increased by 9.1% to 80.2million[3][17]−Backlogdecreasedby22.680.2 million [3][17] - Backlog decreased by 22.6% to 475.8 million, with domestic backlog down 26.0% and international backlog down 5.7% [3][17] Segment Results - Infrastructure Solutions segment net sales increased slightly to 165.0million,withanoperatingadjustedEBITDAof165.0 million, with an operating adjusted EBITDA of 15.6 million, up 17.3% [6][17] - Materials Solutions segment net sales decreased by 9.6% to 126.4million,butoperatingadjustedEBITDAincreasedby52.6126.4 million, but operating adjusted EBITDA increased by 52.6% to 14.5 million [7][17] Cash Flow and Liquidity - Operating cash flow for the quarter was 22.5million,withfreecashflowof22.5 million, with free cash flow of 19.9 million after capital expenditures of 2.6million[1][8]−Totalliquiditystoodat2.6 million [1][8] - Total liquidity stood at 195.1 million, comprising 52.7millionincashandcashequivalentsand52.7 million in cash and cash equivalents and 142.4 million available for additional borrowings [8][20] Balance Sheet Highlights - Total assets increased to 1,067.1millionasofSeptember30,2024,comparedto1,067.1 million as of September 30, 2024, compared to 1,059.3 million at the end of 2023 [20] - Total equity decreased to 631.4millionfrom631.4 million from 653.7 million [20] Strategic Focus - The company is concentrating on commercial and operational excellence, aiming to drive sustainable value creation for shareholders [2][3] - Ongoing transformation initiatives include a phased implementation of a standardized enterprise resource planning system and lean manufacturing efforts [24][25]