Business
UPDATED and REVISED ASTEC INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS
UPDATED BY ASTEC INDUSTRIES, INC. CHATTANOOGA, Tenn., March 17, 2020 (GLOBE NEWSWIRE) -- In the press release for the fourth quarter and full year 2019, gross
About this update from Astec Industries, Inc.
[{"type":"text","content":"UPDATED BY ASTEC INDUSTRIES, INC.\nCHATTANOOGA, Tenn., March 17, 2020 (GLOBE NEWSWIRE) -- In the press release for the fourth quarter and full year 2019, gross profit, restructuring and impairment charges, income taxes, net income, earnings per share and certain balance sheet items, including inventory, have all been updated to reflect a change in the accounting treatment of our GEFCO business. In the earlier press release, GEFCO’s net assets were treated as “assets held for sale” and its net assets were reduced to their estimated fair value based upon early indications of interest from potential purchasers. Currently, the sale of the GEFCO business under the terms and timing contained in the early indications of interest is unlikely. As a result, the value of the GEFCO’s assets is now accounted for as “assets held and used.” The Company’s current plan is to exit the GEFCO oil and gas business and continue to operate and pursue an exit strategy for the GEFCO water and geothermal well business. The related oil and gas inventories on hand at December 31, 2019 have been reduced to their net realizable value considering the Company’s planned exit. \n The updated and revised release reads: ASTEC INDUSTRIES REPORTS FOURTH QUARTER AND FULL YEAR 2019 RESULTS Fourth Quarter 2019 Highlights (all comparisons are made to the prior year fourth quarter): Net Sales decreased 10.7% to $283.2MGross profit of 9.7%; adjusted gross profit of 21.2% decreased 280 bpsEPS loss of $0.81; adjusted EPS of $0.36 decreased from $0.61 a year agoAdjusted EBITDA of $13.7M decreased 51.0%; adjusted EBITDA margin of 4.9% declined 390bps 2019 Highlights (all comparisons are made to the prior year): Net sales were relatively flat; adjusted net sales decreased 7.8% to $1.15BGross profit of 20.5%; adjusted gross profit of 21.9% decreased 190bpsEPS of $0.98; adjusted EPS of $1.55 decreased from $2.94 a year agoAdjusted EBITDA of $67.1M decreased 42.3%; adjusted EBITDA margin of 5.8% declined 350bpsBegan restructuring initiatives related to strategic pillars for profitable growth – Simplify, Focus and Grow Fourth Quarter 2019 Results Fourth quarter net sales of $283.2 million decreased 10.7% compared to $317.0 million for the fourth quarter of 2018. Domestic sales of $209.6 million decreased 15.5% from $248.2 million a year ago, while International sales of $73.6 mill...