Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q1 2024 Earnings Presentation
21 slides from Astec Industries's earnings presentation, May 1, 2024
Slide 1: First Quarter Earnings
First Quarter Earnings MAY 1, 2024 B U I LT TO C O N N E C T
Slide 2: Safe Harbor
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 o
Slide 3: First Quarter Highlights
First Quarter Highlights JACO VAN DER MERWE CEO AND PRESIDENT 3
Slide 4: First Quarter Overview
First Quarter Infrastructure Solutions saw solid performance overall, aside from select Overview 1 supply chain delays, with implied orders up 9.3% sequentially Softening in market conditions and the impact of current interest rates and a $309.2M slowdown in conversions on the dealer side from equip
Slide 5: Strategic Roadmap for 2024 and Beyond
Strategic Roadmap for 2024 and Beyond STR ATEG IC PI LL A R S Develop high performance talent through competitive market based compensation and benefits, ongoing leadership and technical skills development and a values based EMPOWERED, ENABLED culture. & ENGAGED EMPLOYEES Being an employer of choice
Slide 6: Business Dynamics and Observations
Business Dynamics and Observations INFRASTRUCTURE M AT E R I A L S SOLUTIONS SOLUTIONS • Net sales of $202.2M decreased 6.2%: • Net sales of $107.0M decreased by Select supply chain delays resulted in 19.1%: Due to lower equipment sales, revenue moving out of the quarter attributable to finance capa
Slide 7: Q1 24 Implied Orders
Q1 24 Implied Orders Implied Orders ($M) INFRASTRUCTURE SOLUTIONS Implied Orders ($M) +9.3% Q/Q $210 +2.4% Q/Q $192 $299 $172 $166 $292 $119 $235 $239 $229 1Q23 2Q23 3Q23 4Q23 1Q24 MATERIALS SOLUTIONS Implied Orders ($M) $110 -11.0% Q/Q $100 $89 $73 $63 1Q23 2Q23 3Q23 4Q23 1Q24 1Q23 2Q23 3Q23 4Q23 1
Slide 8: Historical Backlog
Historical Backlog BACKLOG ($M) INFRASTRUCTURE SOLUTIONS BACKLOG ($M) $523 $547 $516 $480 $473 $439 $969 $408 $395 $365 $373 $913 $835 $837 $800 $763 $689 $615 $570 $560 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 HISTORICAL RANGE MATERIALS SOLUTIONS BACKLOG ($M) $422 $397 $355 $354 $314 $328
Slide 9: 2024 World of Asphalt/Agg Show and Conference
2024 World of Asphalt/Agg 1 Show and Conference NEW PRODUCTS UNVEILED • ReMix CCPR System: Cold Central Plant Recycling (CCPR) system efficiently utilizes RAP, minimizing waste and promoting sustainable road construction practices. Producing up to 300 TPH nominal production rates. • Vari-Frequency S
Slide 10: First Quarter Financial Results
First Quarter Financial Results HEINRICH JONKER VICE PRESIDENT FINANCE – INFRASTRUCTURE SOLUTIONS AND INTERIM CHIEF FINANCIAL OFFICER 10
Slide 11: 1Q24 Financial Results
1Q24 Financial Results ($M, except per share and percentage data) NET SALES ADJ. EBITDA1 ADJ. EBITDA MARGIN1 ADJ. EPS1 $347.9 $35.2 $0.90 (11.1%) (46.3%) 10.1% (400bps) (62.2%) $309.2 6.1% $18.9 $0.34 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 • Equipment sales decreased • Adj.
Slide 12: Infrastructure Solutions
Infrastructure Solutions 1Q24 Financial Performance ($M, except percentage data) NET SALES SEGMENT OPERATING SEGMENT OPERATING ADJ. EBITDA PERFORMANCE DRIVERS ADJ. EBITDA MARGIN • Sales decreased mainly due to select supply chain delays related to equipment sales, strong (6.2%) $28.5M (10.2%) 13.2%
Slide 13: Materials Solutions
Materials Solutions 1Q24 Financial Performance ($M, except percentage data) NET SALES SEGMENT OPERATING PERFORMANCE DRIVERS ADJ. EBITDA SEGMENT OPERATING • Sales decreased due to lower equipment sales, ADJ. EBITDA MARGIN attributable to finance capacity constraints with contractors and dealers, as w
Slide 14: 1Q24 Adjusted EBITDA Bridge
1Q24 Adjusted EBITDA1 Bridge ($M) 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. 14
Slide 15: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET LIQUIDITY ($M) 3/31/24 ($M) 3/31/24 Cash and Cash Equivalents $55.3 Cash and Cash Equivalents $55.3 Total Current Assets $778.8 Available Credit $115.2 Total Assets $1,123.0 Total Available Liquidity $170.5 Total Curr
Slide 16: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework 21% Share Repurchases Returns to Shareholders • ~$116M remaining in authorized share 7% • Dividend of $0.13 per share in 1Q 2024 repurchase program, positioning us for additional opportunistic share repurchases subject to market conditions 11% ~$159 Acquisiti
Slide 17: 1Q 2024 Summary
1Q 2024 Summary New strategic pillars to ensure continued commitment to drive sustainable 1 value for our employees, customers and shareholders Despite challenging market dynamics, Focused on delivering results while deploying strategy, driving cost 2 efficiencies during mixed market conditions busi
Slide 18: Questions & Answers
Questions & Answers STEVE ANDERSON SVP OF ADMINISTRATION & INVESTOR RELATIONS Phone: 423-553-5934 Email: sanderson@astecindustries.com 18
Slide 19: Appendix
APPENDIX B U I LT TO C O N N E C T 19
Slide 20: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; unaudited) 20
Slide 21: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except percentage data; unaudited) 21