Astec Industries, Inc. · NASDAQ:ASTE
Astec Industries — Q2 2024 Earnings Presentation
22 slides from Astec Industries's earnings presentation, Aug 7, 2024
Slide 1: Second Quarter Earnings
Second Quarter Earnings August 7, 2024 B U I LT TO C O N N E C T
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 CEO AND PRESIDENT 3
Slide 4: Second Quarter Overview
Second Quarter Infrastructure Solutions segment saw continued solid performance overall Overview 1 with implied orders up 3.4% sequentially as the infrastructure construction market remains strong with healthy demand for asphalt and concrete plant deliveries anticipated through the beginning of 2025
Slide 5: Strategic Roadmap for 2024 and Beyond
Strategic Roadmap for 2024 and Beyond STRATEGIC PILL ARS Develop high performance talent through competitive market based compensation and benefits, ongoing leadership and technical skills development and a values EMPOWERED, ENABLED based culture. & ENGAGED EMPLOYEES Being an employer of choice, giv
Slide 6: Business Dynamics and Observations
Business Dynamics and Observations INFRASTRUCTURE M AT E R I A L S SOLUTIONS SOLUTIONS • Net sales of $221.4M increased • Net sales of $124.1M decreased by 11.0%: Strong performance from 17.7%: Due to lower equipment sales, equipment sales and pricing actions, attributable to finance capacity constr
Slide 7: Q2 Implied Orders
Q2 24 Implied Orders Implied Orders ($M) INFRASTRUCTURE SOLUTIONS Implied Orders ($M) +3.4% Q/Q +5.9% Q/Q $210 $217 $317 $192 $292 $299 $166 $119 $239 $229 2Q23 3Q23 4Q23 1Q24 2Q24 MATERIALS SOLUTIONS Implied Orders ($M) $110 +11.8% Q/Q $100 $100 $89 $73 2Q23 3Q23 4Q23 1Q24 2Q24 2Q23 3Q23 4Q23 1Q24
Slide 8: Historical Backlog
Historical Backlog BACKLOG ($M) INFRASTRUCTURE SOLUTIONS BACKLOG ($M) $523 $547 $516 $480 $473 $439 $969 $408 $395 $365 $373 $369 $913 $835 $837 $800 $763 $689 $615 $570 $560 $531 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 HISTORICAL RANGE MATERIALS SOLUTIONS BACKLOG ($M) $422 $397 $355
Slide 9: Hillhead 2024 Overview
Hillhead 2024 Overview SIXTEEN PRODUCTS DISPLAYED TELESTACK TSR40 RADIAL TELESCOPIC 19,500+ ATTENDEES CONVEYOR A Record-Breaking Year LIVE DEMONSTRATIONS KOLBERG 9225SP SAND PLANT SF20 MOBILE INCLINE SCREEN FT4250 HSI Plant • GT205 Screen Plant NEW PRODUCTS REVEALED AT OVER TEN Media Mentions For MS
Slide 10: Second Quarter Financial Results
Second Quarter Financial Results HEINRICH JONKER VICE PRESIDENT FINANCE – INFRASTRUCTURE SOLUTIONS AND INTERIM CHIEF FINANCIAL OFFICER 10
Slide 11: 2Q24 Financial Results
2Q24 Financial Results ($M, except per share and percentage data) NET SALES ADJ. EBITDA1 ADJ. EBITDA MARGIN1 ADJ. EPS1 (29.9%) (1.3%) 32.2 (14.3%) 9.2% (120bps) 0.87 350.0 345.5 8.0% 27.6 0.61 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 2Q 2023 2Q 2024 • Domestic sales decreased $14.3M or Adj. E
Slide 12: Infrastructure Solutions
Infrastructure Solutions 2Q24 Financial Performance ($M, except percentage data) NET SALES SEGMENT OPERATING SEGMENT OPERATING ADJ. EBITDA PERFORMANCE DRIVERS ADJ. EBITDA MARGIN • Sales increased mainly due to strong 11.0% 5.8% (60bps) performance from equipment sales and pricing $221.4 $25.7 $27.2
Slide 13: Materials Solutions
Materials Solutions 2Q24 Financial Performance ($M, except percentage data) NET SALES SEGMENT OPERATING SEGMENT OPERATING PERFORMANCE DRIVERS ADJ. EBITDA ADJ. EBITDA MARGIN • Sales decreased mainly due to lower equipment sales, attributable to finance capacity constraints with contractors and dealer
Slide 14: 2Q24 Adjusted EBITDA Bridge
2Q24 Adjusted EBITDA1 Bridge ($M) $10.5 $(3.7) $32.2 $(7.6) $27.6 $(3.8) Volume, Pricing Manufacturing 2Q24 & Mix Inefficiencies and Other Period… 2Q23 Inflation SG&A & Other 1 See appendix for the reconciliation of GAAP to Non-GAAP measures.
Slide 15: Maintain Strong, Flexible Balance Sheet with Ample Liquidity
Maintain Strong, Flexible Balance Sheet with Ample Liquidity SUMMARY BALANCE SHEET LIQUIDITY ($M) 6/30/24 ($M) 6/30/24 Cash and Cash Equivalents $60.6 Cash and Cash Equivalents $60.6 Total Current Assets $778.8 Available Credit $115.2 Total Assets $1,107.0 Total Available Liquidity $175.8 Total Curr
Slide 16: Disciplined Capital Deployment Framework
Disciplined Capital Deployment Framework 21% Returns to Shareholders Acquisitions Dividend of $0.13 per share in 2Q 2024 11% Disciplined M&A approach to identify acquisitions that align with growth ~$163 strategy and meet financial criteria 6% USE OF CASH LAST 3 YEARS Share Repurchases Capital Alloc
Slide 17: 2Q 2024 Summary
2Q 2024 Summary Focused on delivering consistent results for our customers and driving further cost efficiencies to enhance value creation for all stakeholders Despite continued Restructuring program implemented at select sites during the quarter challenging market due to lower volumes and to addres
Slide 18: Rock to Road: Stable Funding, Customer Sentiment, Parts Revenue
Trusted source -High-quality solutions to facilitate 1 construction from Rock to Road TM Stable Funding – Encouraged by increased federal and state 2 highway funding Positive Customer Sentiment - Strong customer backlogs 3 stretching into 2025 Recurring Parts Revenue – Growing aftermarket parts 4 bu
Slide 19: Questions & Answers
Questions & Answers STEVE ANDERSON SVP OF ADMINISTRATION & INVESTOR RELATIONS Phone: 423-553-5934 Email: sanderson@astecindustries.com 19
Slide 20: Appendix
APPENDIX B U I LT TO C O N N E C T 20
Slide 21: GAAP vs Non-GAAP Adjusted EPS Reconciliations
GAAP vs Non-GAAP Adjusted EPS Reconciliations (in millions, except per share amounts; unaudited) 21
Slide 22: EBITDA and Adjusted EBITDA Reconciliations
EBITDA and Adjusted EBITDA Reconciliations (in millions, except percentage data; unaudited) 22