Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q4 2019 Earnings Presentation
22 slides from Astec Industries's earnings presentation, Mar 3, 2020
Slide 1: 4Q19 Earnings Presentation
4Q19 Earnings Presentation MARCH 4, 2020
Slide 2: Safe Harbor
Safe Harbor 2 The information contained in this presentation and discussion contains “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the effects on the Company from (
Slide 3: Astec overview & 4Q19 Highlights
Astec overview & 4Q19 Highlights Barry Ruffalo | President & CEO
Slide 4: 2019 Highlights
4 2019 Highlights KEY STATISTICS1 Founded 1972 Headquarters Chattanooga, TN Employees ~3,900 Global Locations 25 in 8 Countries Market-cap $947M Product Categories 100+ Design, Manufacture and Provide Innovative, Productive, Reliable, Eco-friendlyand Safe Equipment to Drive Value for Customers and S
Slide 5: 4Q19 Financial Performance
5 4Q19 Financial Performance Note: All comparisons are YoY, unless otherwise stated. 1 See Appendix for GAAP to Non-GAAP reconciliation table. 2 Calculated by dividing LTM Adjusted FCF by Adjusted Net Income. INCOME STATEMENT BALANCE SHEET AND CASH FLOW Revenues decreased 10.7% to $283.2MAdj. Gross
Slide 6: 2019 Financial Performance
6 2019 Financial Performance Note: All comparisons are YoY, unless otherwise stated. 1 See Appendix for GAAP to Non-GAAP reconciliation table. 2 Calculated by dividing LTM Adjusted FCF by Adjusted Net Income. INCOME STATEMENT BALANCE SHEET AND CASH FLOW Adj. Revenues decreased 7.8% to $1.15BAdj. Gro
Slide 7: Total company & Segment financial results
Total company & Segment financial results Becky Weyenberg | Chief financial Officer
Slide 8: 4Q19 Financial Results
8 4Q19 Financial Results ($M, except per share data) 1 See Appendix for GAAP to Non-GAAP reconciliation table. Equipment sales decreased $48.9M or 21.4%Parts sales increased $6.9M or 9.5%Domestic sales decreased $38.5M or 15.5%International sales increased $4.8M or 6.9%Excluding the impact of foreig
Slide 9: Infrastructure | 4Q19 Financial Performance
9 Infrastructure | 4Q19 Financial Performance ($M) Revenues decrease driven by weakness in domestic equipment, partially offset by increase in partsEquipment sales decreased $9.7M or 11.7% Parts sales increased $2.8M or 9.0%Domestic sales decreased $9.6M or 9.0% Road building orders decreased due to
Slide 10: Aggregate & Mining | 4Q19 Financial Performance
10 Aggregate & Mining | 4Q19 Financial Performance ($M) Revenues decreased in aggregate equipment due primarily to lower dealer activityEquipment sales were down $28.7M or 34.1%Parts sales were up $1.3M or 4.6%International sales decreased $2.8M or 6.7%Domestic sales decreased $21.3M or 28.6% Order
Slide 11: Energy | 4Q19 Financial Performance
11 Energy | 4Q19 Financial Performance ($M) Equipment sales were down $10.7M or 17.3%Parts sales were up $2.6M or 20.3%International sales increased $6.8M or 77.0%Domestic sales decreased $7.7M or 11.4% Order intake decreased in oil and gas due to sustained low oil prices Adjusted gross profit of 24
Slide 12: Focused on Maintaining a Strong Balance Sheet
12 Focused on Maintaining a Strong Balance Sheet Focused on Maintaining a Strong Balance Sheet KEY HIGHLIGHTSOverall strength of the balance sheet provides the financial flexibility to accomplish long-term strategic initiativesInventory turnover improved to 2.6x from 2.5x a year ago Cash position im
Slide 13: Disciplined Capital Deployment Framework
13 Disciplined Capital Deployment Framework Continually evaluate strategy to ensure a balanced approach Use of Cash Over Last 3 Years~$150M Reinvestments Acquisitions Returns to Shareholders Internal investments meeting return objectives of >14% ROIC Future acquisitions to align with growth strategy
Slide 14: Aligned Strategy for Profitable Growth
Aligned Strategy for Profitable Growth 14 FOCUS SIMPLIFY GROW Leveraging global footprint and scale while maintaining strong customer relationships Reduce organizational structure complexityConsolidate and rationalize footprint and product portfolioOptimize supply chain by leveraging size and scale
Slide 15: Transformation Progress
Transformation Progress 15 Changed from subsidiary structure to align by product groupsRefreshed executive leadership team and board membersExecuted Astec Strategic Procurement initiative consolidating supply chainAssessing 1Q20 re-segmentation to streamline reporting structure SIMPLIFY Hired SVP of
Slide 16: Q&A
Q&A
Slide 17: Contact Information
17 Contact Information STEVE ANDERSONSVP of Administration, Investor Relations & Corporate SecretaryPhone: 423-553-5934Email: sanderson@astecindustries.com
Slide 18: Appendix
Appendix
Slide 19: Income Statement
Income Statement Astec Industries, Ine. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended welve Months Ended Dec31 Dec31 2018 2018 WWet sales 3 1tea 3 |§ 1,171,588 costor sales 923.158 [Gross proft (Loss 7285 454 ISeling, general, ad
Slide 20: Balance Sheet
Balance Sheet _ Astec Industries, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) Dec Dec 2019 2018 Assets Curent assets Cash and cash equivalents $ 48867|$ 25,821 Investments 1,547 1,946 Receivables and contract assets, net 124,103 133,978 Inventories 278,863 355,944 Prepaid e
Slide 21: Q4 GAAP to Non-GAAP Reconciliation Table
21 Q4 GAAP to Non-GAAP Reconciliation Table
Slide 22: FY GAAP to Non-GAAP Reconciliation Table
22 FY GAAP to Non-GAAP Reconciliation Table Exhibit 99.2