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

Apr 24, 2018 • 10:00 am ET


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


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Greetings, and welcome to the Astec Industries First Quarter 2018 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

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

Stephen 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 moment, 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 discussion 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 could influence our results are highlighted today financial news release and others are contained in or in the report and are filings with the SEC. As usual we ask 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

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% or $7.1 million increase in net sales.

International sales were 55.4 million in this quarter compared to 64.9 million last year, a decrease of 14.7% or $9.5 million decrease. The decrease in the international sales quarter versus quarter was primarily in Australasia, Canada, Mexico and Russia. Those decreases were offset by increases in South America including Brazil and the post-Soviet states.

For the quarter, international sales decrease in the infrastructure group and the energy group and the increased in the aggregate mining group. International sales were 17% of sales in this quarter compared to 20.4% of sales in Q1 '17.

Domestic sales were 270.1 million in Q1 of '18 to 253.5 million in the first quarter last year, an increase of 6.5% or $16.6 million increase in domestic sales. Therefore domestic sales were 83% of sales this quarter compared to 79.6% of Q1 '17 sales.

For the quarter domestic sales increased Aggregate and Mining Group and the Energy group and decreased in the Infrastructure Group. Part sales were $88.1million this quarter compared to $81 million in Q1 '17, an increase of $7.1 million or 8.8% increase.

Part sales represented 27.1% of our quarterly sales this year compared 25.4% of