Astec Industries Inc (NASDAQ:ASTE) Q1 2018 Earnings Conference Call - Final Transcript

Apr 24, 2018 • 10:00 am ET


Astec Industries Inc (NASDAQ:ASTE) Q1 2018 Earnings Conference Call - Final Transcript


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Greetings, and welcome to Astec Industries First Quarter 2018 Earnings Call. [Operator Instructions]

I would now like to turn the conference over to Steve Anderson, Vice President, Director of Investor Relations. Please go ahead, Mr. Anderson.

Stephen C. Anderson

Thank you, Rob. Good morning, and welcome to the Astec Industries conference call for the first quarter that ended March 31, 2018.

As Rob mentioned, my name is Steve Anderson. And also on today's call are Ben Brock, our President and Chief Executive Officer; Rick Dorris, Executive Vice President and Chief Operating Officer; and David Silvious, our Chief Financial Officer. In just a minute, I'll turn the call over to David to summarize our financial results, and then to Ben to review our business activity during the first quarter.

Before we begin, I'll remind you that our discussions this morning do contain forward-looking statements that relate to the future performance of the Company. And these statements are intended to qualify for the safe harbor liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions.

Factors that can influence our results are highlighted in today's financial news release and others are contained in our annual report and our filings with the SEC. As usual, we ask that you familiarize yourself with those factors.

So at this point, I'll turn the call over to David to summarize our financial results for the first quarter.

David Silvious

All right. Thanks, Steve, and good morning, everyone. Thank you for joining us.

Net sales for the quarter were $325.5 million compared to $318.4 million in Q1 of '17, a 2.2% increase or $7.1 million increase in sales. International sales were $55.4 million in this quarter compared to $64.9 million last year, a decrease of 14.7% or a $9.5 million decrease. The decrease in international sales quarter-versus-quarter occurred primarily in Australasia, in Canada, in Mexico and Russia. Those decreases were offset by increases in South America, including Brazil and the post-Soviet states.

For the quarter, international sales decreased in the Infrastructure Group and the Energy Group, and they increased in the Aggregate and Mining Group. International sales were 17% of sales in this quarter compared to 20.4% of sales in Q1 of '17.

Domestic sales were $270.1 million in Q1 of '18 compared to $253.5 million in the first quarter last year, an increase of 6.5% or a $16.6 million increase in domestic sales. Therefore, domestic sales were 83% of sales this quarter compared to 79.6% of Q1 '17 sales. And for the quarter, domestic sales increased in the Agg and Mining Group and in the Energy Group, and decreased in the Infrastructure Group.

Parts sales were $88.1 million this quarter compared to $81 million in Q1 of '17, an increase of $7.1 million or 8.8% increase. Parts sales represented 27.1% of our quarterly sales this year compared to 25.4% of sales in Q1 of '17. For the quarter, parts sales increased in each of our