Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q3 2019 Earnings Presentation
22 slides from Astec Industries's earnings presentation, Oct 29, 2019
Slide 1: 3Q19 Earnings Call Presentation
3Q19 Earnings call PRESENTATION October 29, 2019
Slide 2: Safe Harbor
This presentation and discussion may contain forward-looking statements regarding the future performance of the Company, including representations about the Company's future financial performance, market conditions, the long-term growth prospects of the Company and its markets, opportunities for mar
Slide 3: Astec overview & 3Q19 Highlights
Astec overview & 3Q19 Highlights Barry Ruffalo | President & CEO
Slide 4: Astec Industries at a Glance
4 Astec Industries at a Glance (NASDAQ: ASTE) KEY STATISTICS1 Founded 1972 Headquarters Chattanooga, TN Employees ~4,100 Global Locations 26 in 6 Countries Market-cap $732M Product Categories 100+ Design, Manufacture and Provide Innovative, Productive, Reliable, Eco-friendlyand Safe Equipment to Dri
Slide 5: 3Q19 Financial Performance
3Q19 Financial Performance 5 Note: All comparisons are YoY, unless otherwise stated. 1 See Appendix for GAAP to Non-GAAP reconciliation table. 2 Calculated by dividing YTD Adjusted FCF by Adjusted Net Income. INCOME STATEMENT BALANCE SHEET AND CASH FLOW Revenues decreased 0.3% to $255.8MGross Margin
Slide 6: Total company & Segment financial results
Total company & Segment financial results David Silvious | CFO, VP & Treasurer
Slide 7: 3Q19 Financial Results
3Q19 Financial Results ($M, except per share data) 7 (0.3%) (43.3%) (22.8%) Adjustments 1 See Appendix for GAAP to Non-GAAP reconciliation table. Adjustments Equipment sales decreased $3.7M or 2.2%Parts sales increased $3.6M or 5.2%Domestic sales decreased $4.4M or 2.3%International sales increased
Slide 8: Infrastructure | 3Q19 Financial Performance
8 Infrastructure | 3Q19 Financial Performance ($M) 1.3% 1 See Appendix for GAAP to Non-GAAP reconciliation table. (40.1%) Adjustments Revenues increased in asphalt production equipment while decreasing in road building equipmentEquipment sales increased $1.6M or 3.1% Parts sales were consistent with
Slide 9: Aggregate & Mining | 3Q19 Financial Performance
9 Aggregate & Mining | 3Q19 Financial Performance ($M) (2.1%) (14.2%) Revenues decreased in aggregate equipment due primarily to lower dealer activityEquipment sales were down $5.9M or 8.8%Parts sales were up $2.5M or 8.5%International sales increased $7.3M or 20.1%Domestic sales decreased $9.4M or
Slide 10: Energy | 3Q19 Financial Performance
10 Energy | 3Q19 Financial Performance ($M) 0.2% Equipment sales were down $0.6M or 1.3%Parts sales were up $1.2M or 10.0%International sales increased $4.7M or 70.4%Domestic sales decreased $4.5M or 7.4% Gross margin of 22.9% increased 40 bps EBITDA Margin of 10.7% increased 230 bps YoYBenefit from
Slide 11: Focused on Maintaining a Strong Balance Sheet
Focused on Maintaining a Strong Balance Sheet Managing Cash Flow and Balance Sheet with Great Financial Discipline 11 KEY HIGHLIGHTSOverall strength of the balance sheet provides the financial flexibility to accomplish long-term strategic initiativesInventory turnover improved to 2.6x from 2.4x a ye
Slide 12: Disciplined Capital Deployment Framework
12 Disciplined Capital Deployment Framework Continually evaluate strategy to ensure a balanced approach Use of Cash Over Last 3 Years~$196M Reinvestments Acquisitions Returns to Shareholders Internal investments meeting return objectives of >14% ROIC Future acquisitions to align with growth strategy
Slide 13: Key Observations as Newly Appointed CEO
Key Observations as Newly Appointed CEO Excellent Foundation to Create Shareholder Value 13 KEY, STRATEGICOPPORTUNITY AREASOPTIMIZED STRUCTURESimplify the organization, be closer to customers, make quicker decisionsTECHNOLOGYEnhance customer engagement with more touch points to provide greater value
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: Company Targets Long-term Goals
Company Targets 15 Long-term Goals Revenue Growth 5% - 10% EBITDA Margin > 12% EPS Growth > 10% FCF Conversion1 > 100% Net Income ROIC > 14% Create Value for Shareholders Alignment to Incentive Plan Stand through Cycles 1 Calculated by dividing YTD Adjusted FCF by Adjusted Net Income.
Slide 16: Key Investment Highlights
Key Investment Highlights 16 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 and superior customer service
Slide 17: Q&A
Q&A
Slide 18: Contact Information
18 Contact Information STEVE ANDERSONVP of Administration & Director of Investor RelationsPhone: 423-553-5934Email: sanderson@astecindustries.com
Slide 19: Appendix
Appendix
Slide 20: Income Statement
Income Statement [e\ a Astec Industries, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (unaudited) Three Months Ended Nine Months Ended September 30 September 30 2019 2018 2019 2018 Net sales $ 255.807 | $ 256.613 | $ 886.389 | $ 854.595 Cost of sales 203
Slide 21: Balance Sheet
Balance Sheet _ Astec Industries, Inc. Condensed Consolidated Balance Sheets (in thousands) (unaudited) September 20 ]September 30 2019 2018 Assets Current assets Cash and cash equivalents S$ 26,289/$ 25.674 Investments 4,103 2,432 Receivables, net 114,073 127,523 Inventories 356,889 429,220 Prepaid
Slide 22: Non-GAAP to GAAP Reconciliation Table
Non-GAAP to GAAP Reconciliation Table Q3 2019 As Reported (GAAP) Restructuring Charges Pellet Plant Sale As Adjusted (Non-GAAP) Consolidated Op Income $3,342 $875 - $4,217 Income Tax Expense (Benefit) 1 632 (132) - 764 Net Income attrib. to controlling interest 3,010 743 - 3,753 EPS 0.13 0.04 - 0.17