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DOWNLOAD A COPY OF OF Q4 RESULTS.
DOWNOAD A COPY OF THE CONFERENCE CALL TRANSCRIPT.
CHATTANOOGA, Tenn., Feb. 27 /PRNewswire-FirstCall/ -- Astec Industries, Inc. (Nasdaq: ASTE) today reported results for the fourth quarter and for the year ended December 31, 2006. Revenues for 2006 were $710.6 million and net income for 2006 was $39.6 million, each of which is an historical high for the Company. Net income was $1.81 per diluted share for 2006 compared to $1.34 per diluted share for 2005, for an increase of $0.47, or 35.1% per diluted share.
Revenues for 2006 were $710.6 million compared with $616.1 million for 2005, for an increase of 15.3%. Domestic sales were $518.5 million for 2006, or 73.0% of 2006 revenues, compared to domestic sales of $499.8 million for 2005, or 81.1% of 2005 revenues. International sales were $192.1 million for 2006, a 65.3% increase over 2005, or 27.0% of 2006 revenues, compared to international sales of $116.2 million for 2005, or 18.9% of 2005 revenues. Gross margins for 2006 compared to 2005 increased 210 basis points. The Company reported net income of $39.6 million, or $1.81 per diluted share, for 2006 compared with a net income of $28.1 million, or $1.34 per diluted share for 2005, resulting in a 35.1% increase in diluted earnings per share.
Excluding the unusual items in 2005 (gain on the sale of the Grapevine real estate, impairment charges, and charge-off of prepaid loan fees, as exhibited and reconciled on the attached schedule), income from operations has increased from $40.3 million in 2005 to $60.3 million in 2006, for a 49.8% increase.
Revenues for the fourth quarter of 2006 were $162.2 million compared with $134.5 million for the fourth quarter of 2005, for an increase of 20.6%. Domestic sales were $113.6 million for the fourth quarter of 2006, or 70.0% of 2006 fourth quarter revenues, compared to domestic sales of $108.8 million for the fourth quarter of 2005, or 80.9% of 2005 fourth quarter revenues. International sales were $48.6 million for the fourth quarter of 2006, or 30.0% of 2006 fourth quarter revenues, compared to international sales of $25.7 million for the fourth quarter of 2005, or 19.1% of 2005 fourth quarter revenues. The Company reported net income of $6.3 million, or $0.29 per diluted share, for the fourth quarter of 2006 compared with net income of $1.0 million, or $0.05 per diluted share, for the fourth quarter of 2005, resulting in a 480.0% increase in diluted earnings per share. The Company's previous historical high for fourth quarter earnings was also $0.29 per diluted share in 1998.
Consolidated financial statements for the fourth quarter and year ended December 31, 2006 and additional information related to segment revenues and profits are attached as addenda to this press release.
The Company's backlog at December 31, 2006 was $242.5 million compared to $127.7 million at December 31, 2005, for a $114.8 million increase. The Company's backlog at January 31, 2007 was $261.6 million compared to $161.0 million at January 31, 2006, for a $100.6 million increase.
Commenting on the announcement, Dr. J. Don Brock, Chairman and Chief Executive Officer, stated, "We are very pleased with our 2006 results. We are starting 2007 with historically high backlogs exceeding the prior year by $114.8 million. We will continue to focus on improving our gross margins through more efficient design and manufacturing concepts. We also expect to see moderate inflationary pressure on material costs. We will focus on controlling these costs through the combined purchasing power of our subsidiaries while eliminating waste. We are pleased to have increased our gross margins by 210 basis points in 2006."
Dr. Brock added, "With a record backlog, good economy, highway funding legislation in place, our efficiency initiatives and a strong balance sheet, we are excited about what can be accomplished in growing the business in both revenues and profits in 2007."
Investor Conference Call and Web Simulcast
Astec will conduct a conference call on February 27, 2007, at 10:00 a.m. EST to review its fourth quarter and fiscal 2006 financial results as well as its near term general outlook for 2007. The number to call for this interactive teleconference is (877) 407-9210. Please reference Astec Industries.
The Company will also provide an online Web simulcast and rebroadcast of the conference call. The live broadcast of Astec's conference call will be available online at the Company's website at:
www.astecindustries.com/investors/corporate_info/conference_calls/default.htm
An archived webcast will be available for 90 days at www.astecindustries.com.
A replay of the conference call will be available through midnight on Tuesday, March 6, 2007, by dialing (877) 660-6853;
Account #: 286; Conference ID #: 232442. A transcription of the conference call will be made available under the investor relations section of the Astec Industries, Inc. website within seven days after the call.
Astec Industries, Inc. is a manufacturer of specialized equipment for building and restoring the world's infrastructure. Astec's manufacturing operations are divided into four business segments: aggregate processing and mining equipment; asphalt production equipment; mobile asphalt paving equipment; and underground boring, directional drilling and trenching equipment.
The information contained in this press release contains "forward-looking statements" (within the meaning of the Private Securities Litigation Reform Act of 1995) regarding the future performance of the Company, including statements about the Company's financial performance for 2007, the effects on the Company from its backlog, the effects of highway funding legislation, the effects of improvements in the economy, the effects of a strong balance sheet, and the effects of our efficiency initiatives. These forward-looking statements reflect management's expectations and are based upon currently available information, and the Company undertakes no obligation to update or revise such statements. These statements are not guarantees of performance and are inherently subject to risks and uncertainties, many of which cannot be predicted or anticipated. Future events and actual results, financial or otherwise, could differ materially from those expressed in or implied by the forward-looking statements. Important factors that could cause future events or actual results to differ materially include: general uncertainty in the economy, future downturns in the economy, rising oil and liquid asphalt prices, rising steel prices, a failure to comply in the future with covenants in the Company's credit facility or to obtain waivers thereof, rising interest rates, decreased funding for highway projects, production capacity, general business conditions in the industry, demand for the Company's products, seasonality and cyclicality in operating results, seasonality of sales volumes or lower than expected sales volumes, lower than expected margins on custom equipment orders, competitive activity and those other factors listed from time to time in the Company's reports filed with the Securities and Exchange Commission, including but not limited to the Company's annual report on Form 10-K for the year ended December 31, 2005 and the Company's quarterly reports on Forms 10-Q for the quarters ended March 31, June 30 and September 30, 2006. The
Company plans to file its Form 10-K timely by March 16, 2007.
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