Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q4 2023 Earnings Presentation
26 slides from Astec Industries's earnings presentation, Feb 28, 2024
Slide 1: Fourth Quarter and Full Year Earnings
Fourth Quarter and Full Year Earnings February 28, 2024
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: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights Jaco van der Merwe President & Chief Executive Officer ir.astecindustries.com | 3
Slide 4: Full Year 2023 Highlights
Full Year 2023 Highlights Record full-year sales +5% on solid end market demand, including parts; 1 implied orders +27.6% Q/Q in 4Q; Federal Highway Bill funding further supports confidence in long-term performance 2023 Y/Y GM 24.7%, +400 bps Y/Y price realization; full-year adj. EPS1 more than Sale
Slide 5: Strategic Actions Drive Stakeholder Returns
Strategic Actions Drive Stakeholder Returns Optimizing Reduce organizational structure complexity Simplify Organizational Structure System and process consolidation and Operations Product portfolio optimization Quality and performance focused company culture Large investments in mobile construction
Slide 6: Creating a Performance Culture through Consistent Execution
Creating a Performance Culture through Consistent Execution 2023 Accomplishments 2024 Objectives • Expanded gross margins 400 bps • Leveraging strategic priorities to serve Driving One ASTEC strategy to • Positive margin impact from pricing growing markets create value • Factory investments in peopl
Slide 7: Business Dynamics and Observations
Business Dynamics and Observations Infrastructure Solutions Astec Dynamics • Strong infrastructure demand for asphalt road building and • New product offerings concrete production • End Customers remain busy with growing project • Working with dealers to support growing aftermarket backlog opportuni
Slide 8: Robust Customer Demand for Innovative New Products
Robust Customer Demand for Innovative New Products Peterson 5710 E Horizontal Grinder Roadtec RX405 Cold Planer Equipped with features to improve efficiency and New half lane milling machine serving largest reduce material handling costs market segment Launched March 2023 Launched October 2023 Units
Slide 9: Converting Backlog with Operational Excellence
Converting Backlog with BACKLOG ($M) Operational Excellence $969 $913 $835 $837 $800 • Improved throughput velocity through OpEx $763 and CapEx investments $689 $621 • Enhanced Operations Management $615 $570 (Manufacturing/Quality Engineers) • Dynamic environment impacting backlog and Historical Ra
Slide 10: Uptick in 4Q23 Implied Orders
Uptick in 4Q23 Implied Orders IMPLIED ORDERS ($M) Q Q/ Optimistic About Outlook % $294 7.6 $292 +2 Road construction growth 16%(*) YOY $235 $239 $229 State Department of Transportations plan to increase capital spending by 13%(*) Positive asphalt and concrete plant outlook New product releases expec
Slide 11: Total Company and Segment Financial Results
Total Company and Segment Financial Results Becky Weyenberg Chief Financial Officer ir.astecindustries.com | 11
Slide 12: 4Q23 Financial Results
4Q23 Financial Results ($M, except per share and percentage data) NET SALES ADJ. EBITDA1 ADJ. EBITDA MARGIN1 ADJ. EPS1 $349.9 $32.6 $0.90 $337.2 9.7% $22.2 6.3% (3.6%) 46.8% $0.34 164.7% 340 bps 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 4Q22 4Q23 • Equipment sales decreased • Excludes transformation and • Adj.
Slide 13: 4Q23 Adjusted EBITDA Bridge
4Q23 Adjusted EBITDA1 Bridge ($M) $8.6 $14.7 $32.6 $(7.1) $(5.8) $22.2 4Q22 Volume, Pricing Inflation Manufacturing SG&A & 4Q23 & Mix Efficiencies Other 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. ir.astecindustries.com | 13
Slide 14: Infrastructure Solutions
Infrastructure Solutions 4Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales increased as domestic sales offset soft international demand – Domestic sales +5.0% – International sales -23.6% – Equipment sales -2.8% SEGMENT OPERATING SEGMENT OPERATING – Parts sales +7.2% NET SALES ADJ. EBITDA
Slide 15: Materials Solutions
Materials Solutions 4Q23 Financial Performance ($M) PERFORMANCE DRIVERS • Sales decreased with soft demand across all regions and both equipment and parts – Domestic sales -7.0% – International sales -28.7% – Equipment sales -15.7% SEGMENT OPERATING SEGMENT OPERATING – Parts sales -7.8% NET SALES AD
Slide 16: Full Year 2023 Financial Results
Full Year 2023 Financial Results ($M, except per share and percentage data) NET SALES ADJ. EBITDA1 ADJ. EBITDA MARGIN1 ADJ. EPS1 $110.0 8.2% $2.67 $1,274.5 $1,338.2 5.6% $70.8 5.0% $1.23 260 bps 117.1% 55.4% 2022 2023 2022 2023 2022 2023 2022 2023 • Equipment sales increased • Margin increased due t
Slide 17: Full Year 2023 Adjusted EBITDA Bridge
Full Year 2023 Adjusted EBITDA1 Bridge ($M) $104.9 $0.6 $(40.9) $110.0 $(27.2) $70.8 $1.8 FY22 Acquisitions Volume, Pricing Inflation Manufacturing SG&A & FY23 & Divestitures & Mix Efficiencies Other 1 See appendix for the reconciliation of GAAP to Non-GAAP measures. ir.astecindustries.com | 17
Slide 18: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET ($M) 12/31/23 ($M) 12/31/23 Cash and Cash Equivalents $59.8 Cash and Cash Equivalents $59.8 Total Current Assets $719.5 Available Credit $174.7 Total Assets $1,059.3 Total Available Liquidity $234.5 Total Current Liab
Slide 19: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework Returns to Shareholders • Dividend of $0.13 per share in 4Q23 Continually evaluate strategy to ensure a balanced approach 21% Share Repurchases • ~$116M remaining in authorized share Property and Equipment repurchase program, positioning us for additional opp
Slide 20: 4Q 2023 Summary
4Q 2023 Built momentum during 4Q with sequential growth in sales and 1 implied orders, accompanied by margin expansion; full-year SUMMARY 2023 performance improved on nearly all metrics Data points support stable demand in 2024 as customer 2 sentiment remains positive amidst anticipated industry gro
Slide 21: Questions and Answers
QUESTIONS AND ANSWERS ir.astecindustries.com | 21
Slide 22: Corporate Office: Steve Anderson
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
Slide 26: Return on Invested Capital Reconciliations
Return on Invested Capital Reconciliations (in millions, except percentage data; unaudited) ir.astecindustries.com | 26