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Dec 31, 2019
Astec Q4 2019 Earnings Report
Astec Industries' Q4 2019 results reflected softness in North America partially offset by international sales increase, with restructuring initiatives underway to simplify and focus the organization for future growth.
Key Takeaways
Astec Industries reported a decrease in net sales by 10.7% to $283.2 million compared to the prior year's fourth quarter. The company experienced an EPS loss of $0.85, with an adjusted EPS of $0.40. The company's adjusted EBITDA decreased by 46.6% to $15.0 million. The company began restructuring initiatives related to strategic pillars for profitable growth – Simplify, Focus and Grow
Net sales decreased by 10.7% to $283.2M compared to the prior year fourth quarter.
Gross profit was 12.2%, with adjusted gross profit at 21.5%, a decrease of 250bps.
EPS loss was $0.85; adjusted EPS of $0.40 decreased from $0.61 a year ago.
Adjusted EBITDA decreased 46.6% to $15.0M; adjusted EBITDA margin declined 350bps to 5.3%.
Forward Guidance
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 effects on the Company from (i) restructuring initiatives, (ii) the potential sale of the GEFCO business, (iii) increases in international demand, and (iv) product demand in North America.
Positive Outlook
- restructuring initiatives
- the potential sale of the GEFCO business
- increases in international demand
- product demand in North America
Challenges Ahead
- general uncertainty in the economy
- oil, gas and liquid asphalt prices
- rising steel prices
- decreased funding for highway projects
- the relative strength/weakness of the dollar to foreign currencies
Historical Earnings Impact
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Avg. Return Before/After Earnings
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