Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q2 2023 Earnings Presentation
25 slides from Astec Industries's earnings presentation, Aug 2, 2023
Slide 1: Second Quarter Earnings
Second Quarter Earnings August 2, 2023
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: Second Quarter Highlights
Second Quarter Highlights Jaco van der Merwe President & Chief Executive Officer ir.astecindustries.com | 3
Slide 4: Key 2Q 2023 Messages
KEY Record net sales with double-digit year-over-year growth as Astec 1 2Q 2023 team delivers impressive results on operational excellence improvement and price realization MESSAGES Market demand solid across both segments, with positive 2 customer sentiment; backlog and Federal Highway Bill support
Slide 5: 2023 Priorities Focused on Execution
2023 Priorities Focused on Execution Driving Simplify, Focus and Grow strategy • Establishing consistent track record of financial results to create value • Focus on strategic priorities • Further expanded distribution network in North America Dedicated to employees, customers, and shareholders • St
Slide 6: Focus on returns for all stakeholders
Focus on returns for all stakeholders Simplify Focus Grow Optimizing Organizational Improved Operational Profitable Structure and Operations Excellence Growth • Reduce organizational • Quality and performance • Aftermarket development structure complexity focused company culture • Dealer expansion •
Slide 7: Business Dynamics and Observations
Business Dynamics and Observations INDUSTRY TREND ASTEC RESPONSE / IMPACT Strong infrastructure demand for ✓ Customer conversations indicate sustainable positive demand asphalt roadbuilding, aggregate ✓ Capacity expansion is increasing throughput as we convert backlog to processing and concrete prod
Slide 8: Initiatives to Convert Elevated Backlog
Initiatives to Convert BACKLOG ($M) Elevated Backlog $969 $913 $835 $837 $800 $763 3-year average $655 $689 $621 • Capital Expenditures for facility expansion, automation, productivity and throughput • Selectively adding headcount in manufacturing facilities $421 $436 • Enhanced Operations Managemen
Slide 9: ESG Journey Creates Value
ESG Journey Creates Value Key Focus Areas Invest in Resources to Accelerate Continue to Advance Maintain Sound Environmental Initiatives Social Initiatives Governance Practices Establish KPI tracking and Maintain focus on employee Board Refreshment assessments (GHG, utilities, etc.) safety and welfa
Slide 10: Rock to Road and Beyond
ROCK TO ROAD AND BEYOND Customer/Market Value Chain INDUSTRIAL MOBILE PLANT AUTOMATION TELEMATICS TELEMATICS ROBOTICS CONNECTIVITY & XR SUITE 10
Slide 11: Second Quarter Financial Results
Second Quarter Financial Results Becky Weyenberg Chief Financial Officer ir.astecindustries.com | 11
Slide 12: 2Q23 Financial Results
2Q23 Financial Results ($M, except per share data) NET SALES BACKLOG ADJ. EBITDA1 ADJ. EPS1 $837.4 $32.2 $350.0 $0.87 $318.2 $688.8 $13.2 357.9% 143.9% 10.0% (17.7%) $0.19 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 2Q22 2Q23 • Equipment sales increased • Domestic backlog decreased • Adj. EBITDA margin increased
Slide 13: Infrastructure Solutions
Infrastructure Solutions 2Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales increased on strong domestic demand, mainly service and equipment installation revenue, and favorable net volume, pricing and mix – Domestic sales +10.7% – International sales -24.9% NET SALES BACKLOG SEGMENT OPERAT
Slide 14: Materials Solutions
Materials Solutions 2Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales increase driven by strong domestic equipment sales, and net positive volume, pricing and mix – Domestic sales +24.9% – International sales +11.6% – Equipment sales +29.6% NET SALES BACKLOG SEGMENT OPERATING – Parts sales
Slide 15: 2Q23 Adjusted EBITDA Bridge
2Q23 Adjusted EBITDA1 Bridge 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. ir.astecindustries.com | 15
Slide 16: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET ($M) 6/30/23 ($M) 6/30/23 Cash and Cash Equivalents $41.4 Cash and Cash Equivalents $41.4 Total Current Assets $675.9 Available Credit $185.4 Total Assets $1,010.4 Total Available Liquidity $226.8 Total Current Liabil
Slide 17: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Returns to Shareholders • Dividend of $0.13 per share in 2Q23 Continually evaluate strategy 18% to ensure a balanced approach Share Repurchases • ~$116M remaining in authorized share 6% Plant, Property, repurchase program, positioning us for additional opport
Slide 18: Oracle Suite of Solutions Enabling Transformation
Oracle Suite of Solutions Enabling Transformation y r n e Jo u OUR VISION ti o n d o p n d A n a Desig Cloud O neASTEC Completion of ERP and CX rollout globally Rollout of ERP and CX at majority of IS sites Common operating Implementation of ERP OneASTEC model and CX at corporate and To transform ho
Slide 19: Key Investment Highlights
KEY Leadership within attractive niche markets in industries benefiting from INVESTMENT 1 long-term secular trends including population growth, urbanization and aging infrastructure HIGHLIGHTS Industry-leading reputation for innovation, high-quality products and 2 superior customer service, supporte
Slide 20: Long-Term Goals
Long-Term Goals Deploying the OneASTEC business model to fuel strong future operational and financial performance 5%-10% >12% >10% >1.0 >14% Revenue EBITDA EPS FCF ROIC Growth Margin Growth Conversion1 Create Value for Shareholders Alignment to Incentive Plan Stand Through Cycles 1 Calculated by div
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS ir.astecindustries.com | 21
Slide 22: Corporate Office
CORPORATE OFFICE Steve Anderson SVP of Administration & Investor Relations 1725 Shepherd Road Phone: 423-553-5934 Chattanooga, TN 37421 Email: sanderson@astecindustries.com +1 (423) 899 - 5898 Visit Our Website ir.astecindustries.com | 22
Slide 23: Appendix
APPENDIX ir.astecindustries.com | 23
Slide 24: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; unaudited) ir.astecindustries.com | 24
Slide 25: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except percentage data; unaudited) ir.astecindustries.com | 25