Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q4 2020 Earnings Presentation
32 slides from Astec Industries's earnings presentation, Mar 1, 2021
Slide 1: 4Q20 Earnings Presentation
March 1, 2021 4Q20 Earnings Presentation Exhibit 99.2
Slide 2: Safe Harbor
24Q20 Earnings Presentation | Safe Harbor Certain statements made in the earnings call and contained in this presentation relate to future events and expectations and are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “believe,”
Slide 3: Astec Overview & 4Q20 Highlights
4Q20 Earnings Presentation | Astec Overview & 4Q20 Highlights Barry Ruffalo | President & CEO
Slide 4: Today's Key Messages
44Q20 Earnings Presentation | Today’s Key Messages Strong 4Q20 and full year 2020 performance driven by our ongoing strategic transformation and our ability to gain traction on efficiency and strategic procurement initiatives 01 Customer demand for Astec’s solutions remains resilient; providing our
Slide 5: Rock to Road: Simplified Two Segment Structure
54Q20 Earnings Presentation | ENABLING MORE EFFECTIVE MANAGEMENT Rock to RoadTM Simplified Two Segment Structure Infrastructure Solutions: ~70% Key Products Roadbuilding • Paving • Forestry • Recycling • Asphalt Plants • Concrete Plants • Burners and Heaters • Silos and Storage Tanks Leading Brands
Slide 6: The OneASTEC Business Model is a Competitive Advantage
64Q20 Earnings Presentation | PROACTIVELY MANAGING THROUGH THE PANDEMIC WITH NO SIGNIFICANT DISRUPTIONS The OneASTEC Business Model is a Competitive Advantage Operational Excellence and COVID-19 Update ✓ COVID-19 Task Force continues to actively manage the situation with a focus on safety for our em
Slide 7: Business Dynamics and Observations
74Q20 Earnings Presentation | PROACTIVELY MONITORING THE ENVIRONMENT TO QUICKLY REACT TO CHANGES IN DEMAND Business Dynamics and Observations ✓ Early innings of upcycle in North America; strong residential / non-residential markets ✓ Construction equipment demand is improving; positive customer outl
Slide 8: Early Stages of Our ESG Journey
84Q20 Earnings Presentation | NEAR-TERM FOCUS ON ALIGNING EXISTING PRACTICES WITH ESG FRAMEWORK Early Stages of Our ESG Journey Environmental • Continued respect for environment • Historical and future products developed with a focus on: ‒ Reducing fuel consumption (Double Barrel Green System) ‒ Max
Slide 9: Total Company & Segment Results
4Q20 Earnings Presentation | Total Company & Segment Results Becky Weyenberg | Chief Financial Officer
Slide 10: 4Q20 Financial Results
104Q20 Earnings Presentation | 4Q20 Financial Results ($M, except per share data) • Equipment sales decreased $26.5M or 14.7% • Parts sales increased $8.1M or 10.3% • Domestic sales decreased $29.3M or 14.0% • International sales decreased $15.0M or 20.4% • Materials Solutions backlog increased $68.
Slide 11: 4Q20 Adjusted EBITDA Margin Bridge
114Q20 Earnings Presentation | OVERALL COST SAVINGS DROVE 490 BPS OF YOY MARGIN IMPROVEMENT 4Q20 Adjusted EBITDA Margin1 Bridge 4.9% +140 bps +170 bps +150 bps +30 bps 9.8% 1 See Appendix for GAAP to Non-GAAP reconciliation table.
Slide 12: Infrastructure Solutions 4Q20 Financial Performance
124Q20 Earnings Presentation | Infrastructure Solutions | 4Q20 Financial Performance ($M) 4Q PERFORMANCE DRIVERS • Strong overall performance with favorable product mix particularly from our asphalt and concrete plant product lines. Aftermarket continues to improve with parts sales up 15% year over
Slide 13: Materials Solutions 4Q20 Financial Performance
134Q20 Earnings Presentation | $17.3 $17.7 4Q19 4Q20 ADJ. GROSS PROFIT1 $92.0 $71.7 4Q19 4Q20 NET SALES Materials Solutions | 4Q20 Financial Performance ($M) 4Q PERFORMANCE DRIVERS • Right sizing initiatives taken in 2019 and 2020 to maximize utilization of our manufacturing footprint capacity impro
Slide 14: Full Year 2020 Financial Results vs. 2019
144Q20 Earnings Presentation | Full Year 2020 Financial Results vs. 2019 ($M, except per share data) • Equipment sales decreased $104.2M or 14.0% • Parts sales decreased $18.6M or 5.8% • Domestic sales decreased $71.5M or 8.0% • International sales decreased $53.7M or 20.6% • Materials Solutions bac
Slide 15: YTD20 Adjusted EBITDA Margin Bridge
154Q20 Earnings Presentation | OVERALL COST SAVINGS DROVE 220 BPS OF YOY MARGIN IMPROVEMENT YTD20 Adjusted EBITDA Margin1 Bridge 5.9% +110 bps +90 bps +50 bps -30 bps 8.1% 1 See Appendix for GAAP to Non-GAAP reconciliation table.
Slide 16: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
164Q20 Earnings Presentation | FOCUSED ON MAINTAINING A STRONG BALANCE SHEET Maintain Strong, Flexible Balance Sheet with Ample Liquidity ($M) 12/31/20 Cash and Cash Equivalents 158.6 Total Current Assets 565.8 Total Assets 848.2 Total Current Liabilities 170.3 Total Debt 2.0 Total Liabilities and E
Slide 17: Disciplined Capital Deployment Framework
174Q20 Earnings Presentation | CONTINUALLY EVALUATE STRATEGY TO ENSURE A BALANCED APPROACH Disciplined Capital Deployment Framework Use of Cash Over Last 3 Years ~$152M 44% 21% 19% 16% Plant, Property & Equipment Acquisitions Dividends Share Repurchases Adjustments Given Current Environment Plant, P
Slide 18: Strategic M&A Approach Aligns to Our Growth Strategy
184Q20 Earnings Presentation | CONTINUE TO FOCUS ON STRATEGIC ALIGNMENT AND FINANCIAL DISCIPLINE Strategic M&A Approach Aligns to Our Growth Strategy Financial Criteria EPS Accretion in First Full Year Meet or Exceed Long-term Financial Metrics Attractive Markets / Aligns to Macro Trends #1 or #2 Ma
Slide 19: Our Profitable Growth Strategy Remains Consistent
194Q20 Earnings Presentation | Our Profitable Growth Strategy Remains Consistent SIMPLIFY FOCUS GROW Leverage Actions Taken to Further Simplify the Business Utilize OneASTEC Business Model to Enhance Efficiency Drive Growth through Organic and Inorganic Opportunities • Leverage global footprint and
Slide 20: Update on Our Transformation Progress
204Q20 Earnings Presentation | Update on Our Transformation Progress ✓ Changed from subsidiary structure to align by product groups ✓ Refreshed executive leadership team and board members ✓ Executed Astec Strategic Procurement initiative consolidating supply chain ✓ 1Q20 re-segmentation to two segme
Slide 21: Key Investment Highlights
214Q20 Earnings Presentation | Key Investment Highlights Leadership positions within attractive niche markets in industries benefitting from long-term secular trends including population growth, urbanization and aging infrastructure Industry-leading reputation for innovation, high-quality products a
Slide 22: Q&A
4Q20 Earnings Presentation | Q&A
Slide 23: Contact Information
234Q20 Earnings Presentation | Contact Information STEVE ANDERSON SVP of Administration & Investor Relations Phone: 423-553-5934 Email: sanderson@astecindustries.com
Slide 24: Appendix
4Q20 Earnings Presentation | Appendix
Slide 25: Company Targets Create Value for Shareholders
254Q20 Earnings Presentation | Company Targets Create Value for Shareholders Alignment to Incentive Plan Stand through Cycles 5% - 10% REVENUE GROWTH > 12% EBITDA MARGIN > 10% EPS GROWTH > 100% > 14% ROIC LONG-TERM GOALS Net Income FCF CONVERSION
Slide 26: Income Statement
264Q20 Earnings Presentation | Income Statement
Slide 27: Balance Sheet
274Q20 Earnings Presentation | Balance Sheet Note: Numbers may not foot or cross-foot due to rounding.
Slide 28: Cash Flow Statement
284Q20 Earnings Presentation | Cash Flow Statement
Slide 29: Q4 GAAP to Non-GAAP Reconciliation Table
294Q20 Earnings Presentation | Q4 GAAP to Non-GAAP Reconciliation Table In its earnings release, Astec refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by
Slide 30: 2020 GAAP to Non-GAAP Reconciliation Tables
304Q20 Earnings Presentation | 2020 GAAP to Non-GAAP Reconciliation Tables In its earnings release, Astec refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed
Slide 31: GAAP vs Non-GAAP Adj. EPS Reconciliation
314Q20 Earnings Presentation | GAAP vs Non-GAAP Adj. EPS Reconciliation In its earnings release, Astec refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures being disclosed by
Slide 32: GAAP vs Non-GAAP EBITDA & Adjusted EBITDA Reconciliation
324Q20 Earnings Presentation | GAAP vs Non-GAAP EBITDA & Adjusted EBITDA Reconciliation In its earnings release, Astec refers to various GAAP (U.S. generally accepted accounting principles) and non-GAAP financial measures. These non-GAAP measures may not be comparable to similarly titled measures be