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Jun 30, 2020
Astec Q2 2020 Earnings Report
Astec reported results with adjusted EPS increasing and closure of Wisconsin facility announced.
Key Takeaways
Astec Industries reported a decrease in net sales by 13.0% to $265.3 million, but adjusted net sales decreased by only 6.8%. EPS was $0.41, while adjusted EPS increased by 81.1% to $0.67. The company announced the closure of its Mequon, Wisconsin facility as part of its global footprint consolidation strategy.
Net sales decreased 13.0% to $265.3M; adjusted net sales decreased just 6.8% due to $20.0M included in 2019 sale of a wood pellet plant
Gross margin of 22.5% decreased 480 bps; adjusted Gross margin increased 100 bps
EPS of $0.41 compared to $1.03 a year ago; adjusted EPS of $0.67 increased 81.1%
EBITDA decreased 53.2% to $17.4M; adjusted EBITDA of $25.3M increased 46.9% from $17.2M a year ago; adjusted EBITDA margin of 9.5% increased 350 bps
Revenue by Segment
Forward Guidance
Astec remains cautious given the global pandemic but is well positioned to navigate the economic challenges ahead with a more efficient and streamlined organizational structure, a strong balance sheet and ample liquidity.
Positive Outlook
- More efficient and streamlined organizational structure
- Strong balance sheet
- Ample liquidity
- Strategic transformation with Adjusted EBITDA and 350 bps expansion in Adjusted EBITDA margin
- Acquisition of two premier full-line concrete batch plant manufacturers, CON-E-CO and BMH
Challenges Ahead
- Global pandemic
- Economic challenges
- Net Sales decreased 13.0%
- Gross margin decreased 480 bps
- COVID-19 uncertainties
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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