Astec Industries Inc (NASDAQ:ASTE) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET


Astec Industries Inc (NASDAQ:ASTE) Q2 2020 Earnings Conference Call - Final Transcript


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Stephen C. Anderson

Thank you and welcome to the Astec Industries Second Quarter 2020 Earnings Conference Call. My name is Steve Anderson and joining me on today's call are Barry Ruffalo, our Chief Executive Officer; and Becky Weyenberg, our Chief Financial Officer. In just a moment, I'll turn the call over to Barry to provide comments, and then Becky will summarize our financial results.

Before we begin, I'll remind you that our discussion this morning may 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 in today's financial news release, and others are contained in our filings with the SEC. As usual, we ask that you familiarize yourself with those factors.

You should also note comments made during today's call will refer to the non-GAAP results and a reconciliation of GAAP to non-GAAP results, and they're included in our news release and appendix of our slide deck.

At this point, I'll turn the call over to Barry.

Barry Ruffalo

Thank you, Steve. Good morning, everyone and thank you for joining us on the call this morning to discuss our second quarter 2020 results. I'm very pleased with how our team members have embraced and adapted to the COVID-19 situation as an organization and how we have safely and productively managed through this challenging environment.

The health and safety of our employees, suppliers and customers continue to be our top priority as we navigate through this and work to control the things within our control with a focus on driving long-term profitable growth.

I'll start off today's call by highlighting key messages from the quarter and then provide an update on the COVID-19 response, followed by an update on Astec's operations. I will also discuss what we're seeing in terms of demand in our supply chain, before turning the call over to Becky for details on our financial results. We'll also highlight progress made on our strategic transformation plan and then open the call for Q&A.

Beginning on Slide 4, here are the key messages that we would like to share from the quarter. As a result of the actions that we took in 2019 to transform our company and our continued focus on driving operational excellence, we were able to drive solid performance in the second quarter with a 47% increase in adjusted EBITDA and 350 basis points increase in adjusted EBITDA margin compared to the prior year, despite the challenging macro environment and a reduction in revenue.

In the quarter, we continue to see resilient demand from our customers as our products are essential for building infrastructure and are used to facilitate the transportation needs of our communities. While our customers face near-term uncertainties, they are continuing to demand Astec's solutions, and we will continue to