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ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Tennessee
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62-0873631
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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1725 Shepherd Road, Chattanooga, Tennessee
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37421
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(Address of principal executive offices)
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(Zip Code)
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(Title of each class)
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(Name of each exchange on which registered)
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Common Stock, $0.20 par value
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NASDAQ National Market
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Yes
ý
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No
☐
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Yes
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No
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Yes
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No
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Yes
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No
☐
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Large Accelerated Filer
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Accelerated Filer
☐
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Non-accelerated Filer
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(Do not check if a smaller reporting company)
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Smaller Reporting Company
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Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
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Yes
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No
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Document
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Form 10-K
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Proxy Statement relating to Annual Meeting of Shareholders to be held on April 27, 2017
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Part III
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PART I
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Page
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Item 1.
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Business
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2
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Item 1A.
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Risk Factors
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17
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Item 1B.
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Unresolved Staff Comments
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23
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Item 2.
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Properties
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23
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Item 3.
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Legal Proceedings
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26
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Item 4.
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Mine Safety Disclosures
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26
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Executive Officers | 26 | ||||
PART II
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|||||
Item 5.
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Market for Registrant's Common Equity; Related Shareholder Matters and Issuer Purchases of Equity Securities
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29
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Item 6.
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Selected Financial Data
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30
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Item 7.
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Management's Discussion and Analysis of Financial Condition and Results of Operations
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30
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Item 7A.
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Quantitative and Qualitative Disclosures About Market Risk
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30
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Item 8.
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Financial Statements and Supplementary Data
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30
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Item 9
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Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
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30
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Item 9A.
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Controls and Procedures
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30
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Item 9B.
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Other Information
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31
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PART III
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|||||
Item 10.
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Directors, Executive Officers and Corporate Governance
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31
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Item 11.
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Executive Compensation
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31
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Item 12.
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Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters
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32
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Item 13.
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Certain Relationships and Related Transactions, and Director Independence
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33
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Item 14.
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Principal Accounting Fees and Services
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33
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PART IV
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|||||
Item 15.
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Exhibits and Financial Statement Schedules
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33
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Item 16
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Form 10-K Summary
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35
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Appendix A
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ITEMS 6, 7, 7A, 8, 9A and 15(a)(1), (2) and (3),and 15(b) and 15(c)
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A-1
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|||
Signatures
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·
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execution of the Company's growth and operation strategy;
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·
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plans for technological innovation;
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·
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compliance with covenants in our credit facility;
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·
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liquidity and capital expenditures;
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·
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sufficiency of working capital, cash flows and available capacity under the Company's credit facilities;
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·
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compliance with government regulations;
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·
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compliance with manufacturing and delivery timetables;
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·
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forecasting of results;
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·
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general economic trends and political uncertainty;
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·
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government funding and growth of highway construction and commercial projects;
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·
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taxes or usage fees;
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·
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interest rates;
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·
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integration of acquisitions;
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·
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industry trends;
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·
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pricing, demand and availability of steel, oil and liquid asphalt;
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·
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development of domestic oil and natural gas production;
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·
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condition of the economy;
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·
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strength of the dollar relative to foreign currencies;
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·
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the success of new product lines;
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·
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presence in the international marketplace;
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·
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suitability of our current facilities;
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·
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future payment of dividends;
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·
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competition in our business segments;
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·
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product liability and other claims;
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·
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protection of proprietary technology;
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·
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demand for products;
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·
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future filling of backlogs;
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·
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employees;
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·
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the seasonality of our business;
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·
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tax assets and reserves for uncertain tax positions;
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·
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critical accounting policies
and the impact of accounting changes;
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·
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anticipated future operations in our Brazilian facility;
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·
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our backlog;
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·
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ability to satisfy contingencies;
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·
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contributions to retirement plans and plan expenses;
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·
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reserve levels for self-insured insurance plans and product warranties;
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·
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supply of raw materials; and
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·
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inventory.
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(i)
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Astec, Inc. (including its Dillman division), which designs, engineers, manufactures and markets asphalt plants, wood pellet plants and related components of each;
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(ii)
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Roadtec, Inc., which designs, engineers, manufactures and markets highway and commercial classes of asphalt pavers, material transfer vehicles, milling machines and a line of soil stabilizing-reclaiming machinery;
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(iii)
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Carlson Paving Products, Inc., which designs, engineers, manufactures and markets asphalt paver screeds and commercial pavers;
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(iv)
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Telsmith, Inc., which designs, engineers, manufactures and markets aggregate processing and mining equipment used in the aggregate, mineral mining, metallic mining and recycling industries;
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(v)
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Kolberg-Pioneer, Inc., which designs, engineers, manufactures and markets aggregate processing equipment for the crushed stone, gravel, manufactured sand, recycle, top soil and remediation markets;
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(vi)
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Johnson Crushers International, Inc., which designs, engineers, manufactures and markets portable and stationary aggregate and ore processing equipment for the crushed stone, gravel, manufactured sand, recycle, top soil and remediation markets;
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(vii)
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Astec Mobile Screens, Inc., which designs, engineers, manufactures and markets mobile screening plants, portable and stationary structures and vibrating screens for the aggregate, recycle and material processing industries;
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(viii)
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Breaker Technology Ltd/Inc., which designs, engineers, manufactures and markets rock breaking systems in addition to mobile processing equipment and utility vehicles for the mining and quarrying industries;
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(ix)
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Osborn Engineered Products SA (Pty) Ltd, which designs, engineers, manufactures and markets a complete line of bulk material handling and minerals processing plant and equipment used in the aggregate, mineral mining, metallic mining and recycling industries and also markets equipment produced by other Astec companies;
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(x)
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Astec do Brasil Fabricacao de Equipamentos Ltda., which manufactures and sells rock crushers, feeders, screens and asphalt plants and represents the brands of several other Astec companies in the South American construction and mining industries;
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(xi)
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Telestack Limited, acquired in April 2014 and located in Northern Ireland, which designs, manufactures and installs a complete line of material handling systems to serve the port handling, bulk material handling and aggregate markets;
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(xii)
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Heatec, Inc., which designs, engineers, manufactures and markets thermal fluid heaters, process heaters, waste heat recovery equipment, liquid storage systems and polymer and rubber blending systems;
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(xiii)
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CEI Enterprises, Inc., which designs, engineers, manufactures and markets thermal fluid heaters, storage tanks, concrete plants and rubberized asphalt and polymer blending systems;
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(xiv)
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GEFCO, Inc., which designs, engineers, manufactures and markets portable drilling rigs and related equipment for the water well, environmental, groundwater monitoring, construction, geothermal, mining and shallow oil and gas exploration and production industries. Additionally, during 2015 the Astec Underground, Inc. product lines were absorbed by GEFCO coincident with the closing of Astec Underground, including high pressure diesel powered pump trailers used for fracking and cleaning oil and gas wells and drilling rigs for the oil and gas industries;
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(xv)
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Peterson Pacific Corp., which designs, engineers, manufactures and markets whole-tree pulpwood chippers, horizontal grinders and blower trucks; and
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(xvi)
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Power Flame Incorporated, acquired on August 1, 2016, which designs, engineers and markets commercial and industrial burners and combustion control systems.
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·
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a decrease in the availability of funds for construction;
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·
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declining economy domestically and internationally;
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·
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labor disputes in the construction industry causing work stoppages;
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·
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rising gas and oil prices;
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·
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rising steel prices and steel surcharges;
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·
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rising interest rates;
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·
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energy or building materials shortages;
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·
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inclement weather; and
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·
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availability of credit for customers.
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·
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we may have difficulty integrating the financial and administrative functions of acquired businesses;
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·
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acquisitions may divert management's attention from our existing operations;
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·
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fluctuations in exchange rates and a weakening of the dollar may impact the competitiveness of acquired businesses;
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·
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we may have difficulty in competing successfully for available acquisition candidates, completing future acquisitions or accurately estimating the financial effect of any businesses we acquire;
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·
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we may have delays in realizing the benefits of our strategies for an acquired business;
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·
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we may not be able to retain key employees necessary to continue the operations of the acquired business;
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·
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acquisition costs may deplete significant cash amounts or may decrease our operating income;
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·
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we may choose to acquire a company that is less profitable or has lower profit margins than our company;
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·
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future acquired companies may have unknown liabilities that could require us to spend significant amounts of additional capital; and
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·
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we may incur domestic or international economic declines that impact our acquired companies.
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·
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fluctuating currency exchange rates, which can reduce the profitability of foreign sales;
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·
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the burden of complying with a wide variety of foreign laws and regulations;
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·
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dependence on foreign sales agents;
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·
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political and economic instability of governments;
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·
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the imposition of protective legislation such as import or export barriers; and
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·
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fluctuating strengths or weakness of the dollar, which can impact net sales or the cost of purchased products.
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·
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general competitive and economic conditions, domestically and internationally;
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·
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delays in, or uneven timing in, the delivery of customer orders;
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·
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the seasonal trend in our industry;
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·
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the introduction of new products by us or our competitors;
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·
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product supply shortages; and
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·
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reduced demand due to adverse weather conditions.
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·
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having a staggered Board of Directors;
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·
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requiring a two-thirds vote of the total number of shares issued and outstanding to remove directors other than for cause;
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·
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requiring advance notice of actions proposed by shareholders for consideration at shareholder meetings;
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·
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limiting the right of shareholders to call a special meeting of shareholders;
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·
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requiring that all shareholders entitled to vote on an action provide written consent in order for shareholders to act without holding a shareholders' meeting; and
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·
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being governed by the Tennessee Control Share Acquisition Act.
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Location
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Approximate
Square Footage |
Approximate
Acreage |
Principal Function (Use by Segment)
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||||||
Chattanooga, Tennessee
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543,200
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65
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Offices, manufacturing and training center – Astec (Infrastructure Group)
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||||||
Chattanooga, Tennessee
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--
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4
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Storage yard – Astec (Infrastructure Group)
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||||||
Rossville, Georgia
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40,500
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3
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Manufacturing – Astec (Infrastructure Group)
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||||||
Prairie du Chien, Wisconsin
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91,500
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39
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Manufacturing – Dillman division of Astec (Infrastructure Group)
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||||||
Chattanooga, Tennessee
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135,000
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69
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Offices, manufacturing and storage – Heatec (Energy Group)
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||||||
Chattanooga, Tennessee
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237,000
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15
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Offices, manufacturing and training center – Roadtec (Infrastructure Group)
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||||||
Chattanooga, Tennessee
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51,200
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7
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Manufacturing – Roadtec (Infrastructure Group)
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||||||
Chattanooga, Tennessee
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14,100
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--
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Leased Hanger and Offices – Astec Industries, Inc. (Corporate)
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||||||
Chattanooga, Tennessee
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10,000
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2
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Corporate offices – Astec Industries, Inc. (Corporate)
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||||||
Mequon, Wisconsin
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236,000
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30
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Offices and manufacturing – Telsmith (Aggregate and Mining Group)
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||||||
Sterling, Illinois
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60,000
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8
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Offices and manufacturing – AMS (Aggregate and Mining Group)
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||||||
Orlando, Florida
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9,000
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--
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Leased machine repair and service facility – Roadtec (Infrastructure Group)
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Location
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Approximate
Square Footage |
Approximate
Acreage |
Principal Function (Use by Segment)
|
||||||
Chattanooga, Tennessee
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66,000
|
--
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Leased warehouse – Roadtec (Infrastructure Group)
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||||||
Eugene, Oregon
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140,000
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8
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Offices and manufacturing – JCI (Aggregate and Mining Group)
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||||||
Albuquerque, New Mexico
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115,000
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14
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Offices and manufacturing – CEI (Energy Group)
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||||||
Yankton, South Dakota
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312,000
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50
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Offices and manufacturing – KPI (Aggregate and Mining Group)
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||||||
Thornbury, Ontario, Canada
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60,500
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12
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Offices and manufacturing – BTI (Aggregate and Mining Group)
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||||||
Riverside, California
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12,500
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--
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Leased offices, sales, assembly and warehouse – BTI (Aggregate and Mining Group)
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||||||
Solon, Ohio
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8,900
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--
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Leased offices, sales, assembly and warehouse – BTI (Aggregate and Mining Group)
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||||||
Tacoma, Washington
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55,850
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8
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Offices and manufacturing – Carlson (Infrastructure Group)
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||||||
Tacoma, Washington
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4,400
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1
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R&D/Services Offices-Carlson (Infrastructure Group)
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||||||
Cape Town, South Africa
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4,600
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--
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Leased sales office and warehouse – Osborn (Aggregate and Mining Group)
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||||||
Durban, South Africa
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9,700
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--
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Leased sales office and warehouse – Osborn (Aggregate and Mining Group)
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||||||
Kathu, South Africa
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--
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61
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Undeveloped land – Osborn (Aggregate and Mining Group)
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||||||
Location
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Approximate
Square Footage |
Approximate
Acreage |
Principal Function (Use by Segment)
|
||||||
Johannesburg, South Africa
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229,000
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21
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Offices and manufacturing – Osborn (Aggregate and Mining Group)
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||||||
Eugene, Oregon
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135,000
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15
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Offices and manufacturing – Peterson Pacific Corp. (Energy Group)
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||||||
Enid, Oklahoma
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350,000
|
42
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Offices and manufacturing – GEFCO, Inc. (Energy Group)
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||||||
West Columbia, South Carolina
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12,300
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--
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Leased distribution center – Peterson Pacific Corp. (Energy Group)
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||||||
Acacia Ridge, Australia
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31,000
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5
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Offices, warehousing, service, light fabrication and storage yard – Astec Australia Pty Ltd (Infrastructure Group)
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||||||
Montgomery, Illinois
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3,000
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--
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Leased warehouse - Roadtec (Infrastructure Group)
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||||||
Canning Vale, Australia
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9,000
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--
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Leased office, warehouse and storage yard - Astec Australia Pty Ltd (Infrastructure Group)
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||||||
Hameln, Germany
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35,300
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3
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Offices and light assembly – Asphalt Mobile Machinery GmbH (Infrastructure Group)
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||||||
Vespasiano-MG Brazil
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132,400
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10
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Offices and manufacturing - Astec Brazil (Aggregate and Mining Group)
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||||||
Omagh, Northern Ireland
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85,000
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8
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Offices and manufacturing-Telestack (Aggregate and Mining Group)
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||||||
Joplin, Missouri
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10,000
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--
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Leased parts warehouse/rebuild shop-Roadtec (Infrastructure Group)
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||||||
Parsons, Kansas
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88,000
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7
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Offices and manufacturing – Power Flame (Energy Group)
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||||||
Plan Category
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(a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants, Rights and RSU's
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(b) Weighted Average Exercise Price of Outstanding Options, Warrants and Rights
(3)
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(c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in
Column (a)) |
|||||||||
Equity Compensation Plans Approved by Shareholders
(1)
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111,811
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(2)
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N/A
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602,786
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(4)
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|||||||
Equity Compensation Plans Not Approved by Shareholders
(5)
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23,177
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(6)
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N/A
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80,027
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(7)
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|||||||
Total
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134,988
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682,813
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(1)
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Our 2011 Incentive Plan.
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(2)
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Represents unvested RSUs granted under our 2011 Incentive Plan.
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(3)
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Restricted Stock Units do not have an exercise price.
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(4)
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Represents shares available for issuance under our 2011 Incentive Plan.
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(5)
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Our 1998 Amended and Restated Non-Employee Director Stock Incentive Plan.
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(6)
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Represents 23,177 Deferred Stock Units granted under our 1998 Amended and Restated Non-Employee Director Stock Incentive Plan.
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(7)
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Represents shares available for issuance under our 1998 Amended and Restated Non-Employee Director Stock Incentive Plan.
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Selected Consolidated Financial Data.
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Management's Discussion and Analysis of Financial Condition and Results of Operations.
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Management's Report on Internal Control over Financial Reporting.
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Reports of Independent Registered Public Accounting Firm.
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Consolidated Balance Sheets at December 31, 2016 and 2015.
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Consolidated Statements of Income for the Years Ended December 31, 2016, 2015 and 2014.
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Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016, 2015 and 2014.
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Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014.
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Consolidated Statements of Equity for the Years Ended December 31, 2016, 2015 and 2014.
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Notes to Consolidated Financial Statements.
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(a)(3) The following Exhibits are incorporated by reference into or are filed with this Report:
|
||
3.1
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Amended and Restated Charter of the Company, adopted on April 28, 1986 and amended on September 7, 1988, May 31, 1989 and January 15, 1999 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2011).
|
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3.2
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Amended and Restated Bylaws of the Company, adopted on March 14, 1990 and amended on July 29, 1993, July 26, 2007 and July 23, 2008 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2011).
|
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10.1
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Trust under Astec Industries, Inc. Supplemental Retirement Plan, dated January 1, 1996 (incorporated by reference from the Company's Annual Report on Form 10-K for the year ended December 31, 1995). *
|
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10.2
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Astec Industries, Inc. 1998 Long-Term Incentive Plan (incorporated by reference from Appendix A of the Company's Proxy Statement for the 1998 Annual Meeting of Shareholders). *
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10.3
|
Astec Industries, Inc. 2006 Incentive Plan (incorporated by reference from Appendix A of the Company's Proxy Statement for the 2006 Annual Meeting of Shareholders). *
|
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10.4
|
Amendment Number 1 to Astec Industries, Inc. 2006 Incentive Plan (incorporated by reference from the Company's Annual Report on form 10-K for the year ended December 31, 2008).*
|
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10.5
|
Astec Industries, Inc. Supplemental Executive Retirement Plan, as amended and restated through January 1, 2009 (incorporated by reference from the Company's Annual Report on Form 10-K for the year ended December 31, 2008). *
|
|
10.6
|
Amendment One to the Amended and Restated Astec Industries, Inc. Supplemental Executive Retirement Plan effective October 21, 2010 (incorporated by reference from the Company's Annual Report on Form 10-K for the year ended December 31, 2010). *
|
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10.7
|
Astec Industries, Inc. 2011 Incentive Plan (incorporated by reference from Appendix A of the Company's Proxy Statement for the 2011 Annual Meeting of Shareholders). *
|
|
10.8
|
Amendment to Appendix A of the Astec Industries, Inc. Supplemental Executive Plan effective August 1, 2011 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2011). *
|
|
10.9
|
Amendment to Appendix A of the Astec Industries, Inc. Supplemental Executive Plan effective November 1, 2011 (incorporate by reference from the company's Annual Report on form 10-K for the year ended December 31, 2011). *
|
|
10.10
|
Amended and Restated Credit Agreement, dated as of April 12, 2012, between Astec Industries, Inc. and Certain of its Subsidiaries and Wells Fargo Bank, National Association (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending March 31, 2012).
|
|
10.11
|
Amendment to Appendix A of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective February 28, 2013 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending March 31, 2013). *
|
|
10.12
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective April 25, 2013 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending June 30, 2013). *
|
|
10.13
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective October 24, 2013 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2013). *
|
|
10.14
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective July 24, 2014 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending June 30, 2014). *
|
|
10.15
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective July 23, 2015
(incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending June 30, 2015). *
|
|
10.16
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective April 28, 2016
(incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending March 31, 2016). *
|
|
10.17
|
Astec Industries, Inc. Executive Change in Control Severance Plan, effective July 28, 2016 (incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending June 30, 2016). *
|
|
10.18
|
Amendment to "Appendix A" of the Astec Industries, Inc. Supplemental Executive Retirement Plan, effective October 27, 2016
(incorporated by reference from the Company's Quarterly Report on Form 10-Q for the period ending September 30, 2016). *
|
|
10.19
|
Astec Industries, Inc. Amended and Restated Non-Employee Directors Compensation Plan, original effective April 23, 1998 with amended and restated provisions effective April 29, 2016. *
|
21
|
Subsidiaries of the Registrant.
|
|
23.1
|
Consent of Independent Registered Public Accounting Firm.
|
|
23.2
|
Consent of Independent Registered Public Accounting Firm.
|
|
31.1
|
Certification of Chief Executive Officer of Astec Industries, Inc. pursuant Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002.
|
|
31.2
|
Certification of Chief Financial Officer of Astec Industries, Inc. pursuant Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002.
|
|
32
|
Certification of Chief Executive Officer and Chief Financial Officer of Astec Industries, Inc. pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002.
|
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
|
*
|
Management contract or compensatory plan or arrangement.
|
|
(b)
|
The Exhibits to this Report are listed under Item 15(a)(3) above.
|
(c)
|
The Financial Statement Schedules to this Report are listed under Item 15(a)(2) above.
|
The Exhibits are numbered in accordance with Item 601 of Regulation S-K. Inapplicable Exhibits are not included in the list.
|
Contents
|
Page
|
Selected Consolidated Financial Data
|
A-3
|
Supplementary Financial Data
|
A-4
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
A-5
|
Management's Report on Internal Control over Financial Reporting
|
A-22
|
Reports of Independent Registered Public Accounting Firms
|
A-23
|
Consolidated Balance Sheets at December 31, 2016 and 2015
|
A-26
|
Consolidated Statements of Income for the Years Ended December 31, 2016, 2015 and 2014
|
A-27
|
Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2016, 2015 and 2014
|
A-28
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2016, 2015 and 2014
|
A-29
|
Consolidated Statements of Equity for the Years Ended December 31, 2016, 2015 and 2014
|
A-31
|
Notes to Consolidated Financial Statements
|
A-32
|
Comparison of 5-Year Cumulative Total Return
|
A-56
|
2016
|
2015
|
2014
|
2013
|
2012
|
||||||||||||||||
Consolidated Statement of Income Data
|
||||||||||||||||||||
Net sales
|
$
|
1,147,431
|
$
|
983,157
|
$
|
975,595
|
$
|
932,998
|
$
|
936,273
|
||||||||||
Gross profit
|
265,269
|
218,843
|
215,316
|
207,119
|
207,951
|
|||||||||||||||
Gross profit %
|
23.1
|
%
|
22.3
|
%
|
22.1
|
%
|
22.2
|
%
|
22.2
|
%
|
||||||||||
Selling, general and administrative
expenses
|
153,145
|
145,180
|
141,490
|
133,337
|
136,323
|
|||||||||||||||
Research and development
|
24,969
|
23,676
|
22,129
|
18,101
|
20,520
|
|||||||||||||||
Income from operations
|
87,155
|
49,987
|
51,697
|
55,681
|
51,108
|
|||||||||||||||
Interest expense
|
1,395
|
1,611
|
720
|
423
|
339
|
|||||||||||||||
Other income (expense), net
|
529
|
3,055
|
1,207
|
1,937
|
1,783
|
|||||||||||||||
Net income from continuing operations
|
54,988
|
31,966
|
34,206
|
39,214
|
34,210
|
|||||||||||||||
Income from discontinued operations,
net of tax
|
--
|
--
|
--
|
--
|
3,401
|
|||||||||||||||
Gain on sale of subsidiary, net of tax
|
--
|
--
|
--
|
--
|
3,378
|
|||||||||||||||
Net income
|
54,988
|
31,966
|
34,206
|
39,214
|
40,989
|
|||||||||||||||
Net income attributable to controlling
interest
|
55,159
|
32,797
|
34,458
|
39,042
|
40,828
|
|||||||||||||||
Earnings per common share*:
|
||||||||||||||||||||
Net income attributable to controlling
interest from continuing operations
|
||||||||||||||||||||
Basic
|
2.40
|
1.43
|
1.51
|
1.72
|
1.50
|
|||||||||||||||
Diluted
|
2.38
|
1.42
|
1.49
|
1.69
|
1.48
|
|||||||||||||||
Income from discontinued operations
|
||||||||||||||||||||
Basic
|
--
|
--
|
--
|
--
|
0.30
|
|||||||||||||||
Diluted
|
--
|
--
|
--
|
--
|
0.29
|
|||||||||||||||
Net income attributable to controlling
interest
|
||||||||||||||||||||
Basic
|
2.40
|
1.43
|
1.51
|
1.72
|
1.80
|
|||||||||||||||
Diluted
|
2.38
|
1.42
|
1.49
|
1.69
|
1.77
|
|||||||||||||||
Consolidated Balance Sheet Data
|
||||||||||||||||||||
Working capital
|
$
|
407,972
|
$
|
399,785
|
$
|
388,862
|
$
|
385,680
|
$
|
355,336
|
||||||||||
Total assets
|
843,601
|
777,353
|
802,265
|
749,291
|
728,783
|
|||||||||||||||
Short-term debt
|
4,632
|
--
|
2,814
|
--
|
--
|
|||||||||||||||
Current maturities of long-term debt
|
2,538
|
4,528
|
1,027
|
34
|
--
|
|||||||||||||||
Long-term debt, less current maturities
|
4,116
|
5,154
|
7,061
|
510
|
--
|
|||||||||||||||
Total equity
|
648,841
|
609,858
|
596,152
|
577,311
|
547,534
|
|||||||||||||||
Cash dividends declared per common
share*
|
0.40
|
0.40
|
0.40
|
0.30
|
1.00
|
|||||||||||||||
Book value per diluted common share
at year-end*
|
27.99
|
26.30
|
25.62
|
24.85
|
23.68
|
Quarterly Financial Highlights
(Unaudited)
|
First
Quarter
|
Second
Quarter |
Third
Quarter
|
Fourth
Quarter |
||||||||||||
206
Net sales
|
$
|
278,721
|
$
|
294,394
|
$
|
247,752
|
$
|
326,564
|
||||||||
Gross profit
|
71,956
|
73,452
|
55,389
|
64,472
|
||||||||||||
Net income
|
17,678
|
18,141
|
6,835
|
12,334
|
||||||||||||
Net income attributable to controlling interest
|
17,743
|
18,192
|
6,838
|
12,386
|
||||||||||||
Earnings per common share*
|
||||||||||||||||
Net income attributable to controlling interest:
|
||||||||||||||||
Basic
|
0.77
|
0.79
|
0.30
|
0.54
|
||||||||||||
Diluted
|
0.77
|
0.79
|
0.30
|
0.53
|
||||||||||||
2015
Net sales
|
$
|
288,748
|
$
|
268,042
|
$
|
211,350
|
$
|
215,017
|
||||||||
Gross profit
|
66,045
|
62,233
|
45,138
|
45,427
|
||||||||||||
Net income
|
14,917
|
11,658
|
1,958
|
3,433
|
||||||||||||
Net income attributable to controlling interest
|
15,105
|
11,805
|
2,292
|
3,595
|
||||||||||||
Earnings per common share*
|
||||||||||||||||
Net income attributable to controlling interest:
|
||||||||||||||||
Basic
|
0.66
|
0.51
|
0.10
|
0.16
|
||||||||||||
Diluted
|
0.65
|
0.51
|
0.10
|
0.16
|
||||||||||||
Common Stock Price*
|
||||||||||||||||
2016 High
|
$
|
47.97
|
$
|
57.51
|
$
|
62.75
|
$
|
71.88
|
||||||||
2016 Low
|
33.08
|
44.21
|
51.73
|
52.08
|
||||||||||||
2015 High
|
$
|
43.85
|
$
|
45.48
|
$
|
43.78
|
$
|
41.99
|
||||||||
2015 Low
|
33.90
|
40.64
|
33.02
|
30.76
|
·
|
design, engineer, manufacture and market equipment used in each phase of road building, including mining, quarrying and crushing the aggregate, mobile bulk and material handling solutions, producing asphalt or concrete, recycling old asphalt or concrete and applying the asphalt;
|
·
|
design, engineer, manufacture and market additional equipment and components, including equipment for geothermal drilling, oil and natural gas drilling, industrial heat transfer, wood chipping and grinding, wood pellet processing, commercial and industrial burners, combustion control systems; and
|
·
|
manufacture and sell replacement parts for equipment in each of its product lines.
|
2016
|
2015
|
$ Change
|
% Change
|
|||||||||||||
Infrastructure Group
|
$
|
608,908
|
$
|
428,737
|
$
|
180,171
|
42.0
|
%
|
||||||||
Aggregate and Mining Group
|
359,760
|
370,813
|
(11,053
|
)
|
(3.0
|
%)
|
||||||||||
Energy Group
|
178,763
|
183,607
|
(4,844
|
)
|
(2.6
|
%)
|
2016
|
2015
|
$ Change
|
% Change
|
|||||||||||||
Infrastructure Group
|
$
|
71,482
|
$
|
33,890
|
$
|
37,592
|
110.9
|
%
|
||||||||
Aggregate and Mining Group
|
34,877
|
30,690
|
4,187
|
13.6
|
%
|
|||||||||||
Energy Group
|
4,145
|
3,609
|
536
|
14.9
|
%
|
|||||||||||
Corporate
|
(55,992
|
)
|
(36,623
|
)
|
(19,369
|
)
|
(52.9
|
%)
|
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Infrastructure Group
|
$
|
428,737
|
$
|
386,356
|
$
|
42,381
|
11.0
|
%
|
||||||||
Aggregate and Mining Group
|
370,813
|
384,883
|
(14,070
|
)
|
(3.7
|
%)
|
||||||||||
Energy Group
|
183,607
|
204,356
|
(20,749
|
)
|
(10.2
|
%)
|
2015
|
2014
|
$ Change
|
% Change
|
|||||||||||||
Infrastructure Group
|
$
|
33,890
|
$
|
29,477
|
$
|
4,413
|
15.0
|
%
|
||||||||
Aggregate and Mining Group
|
30,690
|
32,900
|
(2,210
|
)
|
(6.7
|
%)
|
||||||||||
Energy Group
|
3,609
|
10,316
|
(6,707
|
)
|
(65.0
|
%)
|
||||||||||
Corporate
|
(36,623
|
)
|
(35,270
|
)
|
(1,353
|
)
|
(3.8
|
%)
|
2016
|
2015
|
Increase /
Decrease
|
||||||||||
Net income
|
$
|
54,988
|
$
|
31,966
|
$
|
23,022
|
||||||
Depreciation and amortization
|
24,813
|
24,078
|
735
|
|||||||||
Provision for warranties
|
18,912
|
13,743
|
5,169
|
|||||||||
Deferred income tax benefits
|
(3,521
|
)
|
(2,569
|
)
|
(952
|
)
|
||||||
SERP distributions
|
(532
|
)
|
(2,986
|
)
|
2,454
|
|||||||
(Increase) decrease in receivables
|
(4,895
|
)
|
3,163
|
(8,058
|
)
|
|||||||
(Increase) decrease in inventories
|
30,839
|
(6,499
|
)
|
37,338
|
||||||||
(Increase) decrease in prepaid expenses
|
4,846
|
(3,016
|
)
|
7,862
|
||||||||
Increase (decrease) in accounts payable
|
8,836
|
(11,409
|
)
|
20,245
|
||||||||
Increase (decrease) in income taxes payable
|
181
|
(4,093
|
)
|
4,274
|
||||||||
Decrease in customer deposits
|
(762
|
)
|
(3,697
|
)
|
2,935
|
|||||||
Decrease in accrued product warranties
|
(15,125
|
)
|
(14,177
|
)
|
(948
|
)
|
||||||
Other, net
|
16,226
|
6,362
|
9,864
|
|||||||||
Net cash provided by operating activities
|
$
|
134,806
|
$
|
30,866
|
$
|
103,940
|
2016
|
2015
|
Increase /
Decrease
|
||||||||||
Expenditures for property and equipment
|
$
|
(27,367
|
)
|
$
|
(21,202
|
)
|
$
|
(6,165
|
)
|
|||
Proceeds from sale of property and equipment
|
614
|
10,054
|
(9,440
|
)
|
||||||||
Business acquisition, net of cash acquired
|
(39,764
|
)
|
178
|
(39,942
|
)
|
|||||||
Sale of investments
|
290
|
378
|
(88
|
)
|
||||||||
Net cash used by investing activities
|
$
|
(66,227
|
)
|
$
|
(10,592
|
)
|
$
|
(55,635
|
)
|
2016
|
2015
|
Increase /
Decrease
|
||||||||||
Payment of dividends
|
$
|
(9,217
|
)
|
$
|
(9,193
|
)
|
$
|
(24
|
)
|
|||
Borrowings under bank loans
|
5,973
|
106,034
|
(100,061
|
)
|
||||||||
Repayments of bank loans
|
(5,903
|
)
|
(104,567
|
)
|
98,664
|
|||||||
Other, net
|
(1,873
|
)
|
1,664
|
(3,537
|
)
|
|||||||
Net cash used by financing activities
|
$
|
(11,020
|
)
|
$
|
(6,062
|
)
|
$
|
(4,958
|
)
|
Payments Due by Period
|
||||||||||||||||||||
Contractual Obligations
|
Total
|
Less Than
1 Year
|
1 to 3 Years
|
3 to 5 Years
|
More Than
5 Years
|
|||||||||||||||
Operating lease obligations
|
$
|
3,647
|
$
|
1,337
|
$
|
1,647
|
$
|
642
|
$
|
21
|
||||||||||
Inventory purchase obligations
|
3,356
|
3,356
|
--
|
--
|
--
|
|||||||||||||||
Debt obligations
|
12,384
|
7,683
|
3,512
|
593
|
596
|
|||||||||||||||
Total
|
$
|
19,387
|
$
|
12,376
|
$
|
5,159
|
$
|
1,235
|
$
|
617
|
·
|
execution of the Company's growth and operation strategy;
|
·
|
plans for technological innovation;
|
·
|
compliance with covenants in our credit facility;
|
·
|
liquidity and capital expenditures;
|
·
|
sufficiency of working capital, cash flows and available capacity under the Company's credit facilities;
|
·
|
compliance with government regulations;
|
·
|
compliance with manufacturing and delivery timetables;
|
·
|
forecasting of results;
|
·
|
general economic trends and political uncertainty;
|
·
|
government funding and growth of highway construction and commercial projects;
|
·
|
taxes or usage fees;
|
·
|
interest rates;
|
·
|
integration of acquisitions;
|
·
|
industry trends;
|
·
|
pricing, demand and availability of steel, oil and liquid asphalt;
|
·
|
development of domestic oil and natural gas production;
|
·
|
condition of the economy;
|
·
|
strength of the U.S. dollar relative to foreign currencies;
|
·
|
the success of new product lines;
|
·
|
presence in the international marketplace;
|
·
|
suitability of our current facilities;
|
·
|
future payment of dividends;
|
·
|
competition in our business segments;
|
·
|
product liability and other claims;
|
·
|
protection of proprietary technology;
|
·
|
demand for products;
|
·
|
future fillings of backlogs;
|
·
|
employees;
|
·
|
the seasonality of our business;
|
·
|
tax assets and reserves for uncertain tax positions;
|
·
|
critical accounting policies and the impact of accounting changes;
|
·
|
anticipated future operations in our Brazilian operations;
|
·
|
our backlog;
|
·
|
ability to satisfy contingencies;
|
·
|
contributions to retirement plans and plan expenses;
|
·
|
reserve levels for self-insured insurance plans and product warranties;
|
·
|
construction of new manufacturing facilities;
|
·
|
supply of raw materials; and
|
·
|
inventory
|
December 31
|
||||||||
Assets
|
2016
|
2015
|
||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
82,371
|
$
|
25,062
|
||||
Investments
|
1,024
|
1,539
|
||||||
Trade receivables, net
|
106,659
|
98,865
|
||||||
Notes and other receivables
|
4,014
|
3,132
|
||||||
Inventories
|
360,404
|
384,776
|
||||||
Prepaid expenses
|
21,997
|
26,521
|
||||||
Other current assets
|
364
|
1,902
|
||||||
Total current assets
|
576,833
|
541,797
|
||||||
Property and equipment, net
|
180,538
|
170,206
|
||||||
Investments
|
13,965
|
11,540
|
||||||
Goodwill
|
40,804
|
30,835
|
||||||
Intangible assets, net
|
26,643
|
13,577
|
||||||
Deferred income tax assets
|
2,676
|
6,195
|
||||||
Other long-term assets
|
2,142
|
3,203
|
||||||
Total assets
|
$
|
843,601
|
$
|
777,353
|
||||
Liabilities and Equity
|
||||||||
Current liabilities:
|
||||||||
Short-term debt
|
$
|
4,632
|
$
|
--
|
||||
Current maturities of long-term debt
|
2,538
|
4,528
|
||||||
Accounts payable
|
57,297
|
48,385
|
||||||
Customer deposits
|
39,102
|
40,082
|
||||||
Accrued product warranty
|
13,156
|
9,100
|
||||||
Accrued payroll and related liabilities
|
25,693
|
17,375
|
||||||
Accrued loss reserves
|
2,852
|
2,838
|
||||||
Other accrued liabilities
|
23,591
|
19,704
|
||||||
Total current liabilities
|
168,861
|
142,012
|
||||||
Long-term debt
|
4,116
|
5,154
|
||||||
Deferred income tax liabilities
|
1,669
|
2,348
|
||||||
Other long-term liabilities
|
20,114
|
17,981
|
||||||
Total liabilities
|
194,760
|
167,495
|
||||||
Equity:
|
||||||||
Preferred stock - authorized 4,000 shares of $1.00 par value; none issued
|
--
|
--
|
||||||
Common stock – authorized 40,000 shares of $0.20 par value; issued
|
||||||||
and outstanding – 23,046 in 2016 and 22,988 in 2015
|
4,609
|
4,598
|
||||||
Additional paid-in capital
|
139,970
|
137,883
|
||||||
Accumulated other comprehensive loss
|
(31,562
|
)
|
(23,564
|
)
|
||||
Company shares held by SERP, at cost
|
(1,958
|
)
|
(1,778
|
)
|
||||
Retained earnings
|
536,771
|
490,933
|
||||||
Shareholders' equity
|
647,830
|
608,072
|
||||||
Non-controlling interest
|
1,011
|
1,786
|
||||||
Total equity
|
648,841
|
609,858
|
||||||
Total liabilities and equity
|
$
|
843,601
|
$
|
777,353
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Net sales
|
$
|
1,147,431
|
$
|
983,157
|
$
|
975,595
|
||||||
Cost of sales
|
882,162
|
764,314
|
760,279
|
|||||||||
Gross profit
|
265,269
|
218,843
|
215,316
|
|||||||||
Selling, general and administrative expenses
|
153,145
|
145,180
|
141,490
|
|||||||||
Research and development expenses
|
24,969
|
23,676
|
22,129
|
|||||||||
Income from operations
|
87,155
|
49,987
|
51,697
|
|||||||||
Other income:
|
||||||||||||
Interest expense
|
1,395
|
1,611
|
720
|
|||||||||
Interest income
|
806
|
542
|
1,422
|
|||||||||
Other income (expense), net
|
529
|
3,055
|
1,207
|
|||||||||
Income before income taxes
|
87,095
|
51,973
|
53,606
|
|||||||||
Income taxes
|
32,107
|
20,007
|
19,400
|
|||||||||
Net income
|
54,988
|
31,966
|
34,206
|
|||||||||
Net loss attributable to non-controlling interest
|
(171
|
)
|
(831
|
)
|
(252
|
)
|
||||||
Net income attributable to controlling interest
|
$
|
55,159
|
$
|
32,797
|
$
|
34,458
|
||||||
Earnings per Common Share:
|
||||||||||||
Net income attributable to controlling interest:
|
||||||||||||
Basic
|
$
|
2.40
|
$
|
1.43
|
$
|
1.51
|
||||||
Diluted
|
$ |
2.38
|
$ |
1.42
|
$ |
1.49
|
||||||
Weighted average number of common shares outstanding:
|
||||||||||||
Basic
|
22,992
|
22,934
|
22,819
|
|||||||||
Diluted
|
23,142
|
23,120
|
23,105
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Net income
|
$
|
54,988
|
$
|
31,966
|
$
|
34,206
|
||||||
Other comprehensive loss:
|
||||||||||||
Change in unrecognized pension and post-retirement
benefit costs
|
(80
|
)
|
(178
|
)
|
(1,820
|
)
|
||||||
Tax benefit on change in unrecognized
pension and post-retirement benefit costs
|
29
|
36
|
699
|
|||||||||
Foreign currency translation adjustments
|
(2,420
|
)
|
(13,848
|
)
|
(7,670
|
)
|
||||||
Tax (expense) benefit on foreign currency translation
adjustments
|
(5,527
|
)
|
3,341
|
770
|
||||||||
Other comprehensive loss
|
(7,998
|
)
|
(10,649
|
)
|
(8,021
|
)
|
||||||
Comprehensive loss attributable to non-controlling interest
|
(137
|
)
|
(1,603
|
)
|
(565
|
)
|
||||||
Comprehensive income attributable to controlling interest
|
$ |
47,127
|
$ |
22,920
|
$ |
26,750
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net income
|
$
|
54,988
|
$
|
31,966
|
$
|
34,206
|
||||||
Adjustments to reconcile net income to net cash
provided by operating activities:
|
||||||||||||
Depreciation
|
20,818
|
20,744
|
21,343
|
|||||||||
Amortization
|
3,995
|
3,334
|
3,033
|
|||||||||
Provision for doubtful accounts
|
280
|
18
|
1,011
|
|||||||||
Provision for warranties
|
18,912
|
13,743
|
12,796
|
|||||||||
Deferred compensation provision
|
1,742
|
241
|
74
|
|||||||||
Deferred income tax benefit
|
(3,521
|
)
|
(2,559
|
)
|
(2,544
|
)
|
||||||
Gain on disposition of fixed assets
|
(224
|
)
|
(529
|
)
|
(306
|
)
|
||||||
Tax benefit from stock incentive plans
|
--
|
(345
|
)
|
(586
|
)
|
|||||||
Stock-based compensation
|
2,936
|
1,250
|
1,200
|
|||||||||
Distributions to SERP participants
|
(532
|
)
|
(2,986
|
)
|
--
|
|||||||
Change in operating assets and liabilities:
|
||||||||||||
Sale (purchase) of trading securities, net
|
(1,873
|
)
|
(405
|
)
|
118
|
|||||||
Trade and other receivables
|
(4,895
|
)
|
3,163
|
(6,924
|
)
|
|||||||
Inventories
|
30,839
|
(6,499
|
)
|
(41,933
|
)
|
|||||||
Prepaid expenses
|
4,846
|
(3,016
|
)
|
(3,989
|
)
|
|||||||
Other assets
|
2,069
|
(968
|
)
|
(4,763
|
)
|
|||||||
Accounts payable
|
8,836
|
(11,409
|
)
|
10,755
|
||||||||
Customer deposits
|
(762
|
)
|
(3,697
|
)
|
5,483
|
|||||||
Accrued product warranty
|
(15,125
|
)
|
(14,177
|
)
|
(15,563
|
)
|
||||||
Income taxes payable
|
181
|
(4,093
|
)
|
(1,136
|
)
|
|||||||
Accrued retirement benefit costs
|
(50
|
)
|
24
|
(201
|
)
|
|||||||
Accrued loss reserves
|
229
|
103
|
305
|
|||||||||
Other accrued liabilities
|
11,142
|
3,576
|
3,289
|
|||||||||
Other
|
(25
|
)
|
3,387
|
3,195
|
||||||||
Net cash provided by operating activities
|
134,806
|
30,866
|
18,863
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Business acquisition, net of cash acquired
|
(39,764
|
)
|
178
|
(34,965
|
)
|
|||||||
Proceeds from sale of property and equipment
|
614
|
10,054
|
743
|
|||||||||
Expenditures for property and equipment
|
(27,367
|
)
|
(21,202
|
)
|
(24,851
|
)
|
||||||
Sale of investments
|
290
|
378
|
16,249
|
|||||||||
Net cash used by investing activities
|
(66,227
|
)
|
(10,592
|
)
|
(42,824
|
)
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Cash Flows from Financing Activities
|
||||||||||||
Payment of dividends
|
$
|
(9,217
|
)
|
$
|
(9,193
|
)
|
$
|
(9,167
|
)
|
|||
Borrowings under bank loans
|
5,973
|
106,034
|
113,547
|
|||||||||
Repayment of bank loans
|
(5,903
|
)
|
(104,567
|
)
|
(103,188
|
)
|
||||||
Proceeds from issuance of common stock
|
--
|
72
|
282
|
|||||||||
Tax benefit from stock option exercise
|
--
|
345
|
586
|
|||||||||
Sale (purchase) of shares of subsidiaries, net
|
(696
|
)
|
(653
|
)
|
1,428
|
|||||||
Sale (purchase) of Company shares by SERP, net
|
(153
|
)
|
2,084
|
(95
|
)
|
|||||||
Withholding tax paid upon vesting of restricted stock units
|
(1,024
|
)
|
(600
|
)
|
(953
|
)
|
||||||
Proceeds from cash surrender value of life insurance
|
--
|
416
|
--
|
|||||||||
Net cash provided (used) by financing activities
|
(11,020
|
)
|
(6,062
|
)
|
2,440
|
|||||||
Effect of exchange rates on cash
|
(250
|
)
|
(2,173
|
)
|
(1,020
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
57,309
|
12,039
|
(22,541
|
)
|
||||||||
Cash and cash equivalents, beginning of year
|
25,062
|
13,023
|
35,564
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
82,371
|
$
|
25,062
|
$
|
13,023
|
||||||
Supplemental Cash Flow Information
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
1,407
|
$
|
1,651
|
$
|
476
|
||||||
Income taxes, net of refunds
|
$
|
28,455
|
$
|
29,573
|
$
|
23,027
|
Common
Stock
Shares
|
Common
Stock
Amount
|
Additional Paid-in Capital
|
Accumulated
Other Comprehensive Loss |
Company
Shares Held
by SERP
|
Retained
Earnings
|
Non-
Controlling
Interest
|
Total Equity
|
|||||||||||||||||||||||||
Balance December 31, 2013
|
22,859
|
$ |
4,572
|
$ |
134,730
|
$ |
(4,894
|
)
|
$ |
(2,786
|
)
|
$ |
442,054
|
$ |
3,635
|
$ |
577,311
|
|||||||||||||||
Net income
|
34,458
|
(252
|
)
|
34,206
|
||||||||||||||||||||||||||||
Quarterly dividends ($0.10 per share
for 4 quarters) |
8
|
(9,175
|
)
|
(9,167
|
)
|
|||||||||||||||||||||||||||
Other comprehensive loss
|
(8,021
|
)
|
565
|
(7,456
|
)
|
|||||||||||||||||||||||||||
Change in ownership percentage of subsidiary
|
(1,345
|
)
|
(1,345
|
)
|
||||||||||||||||||||||||||||
Capital contributed by minority shareholder
|
1,583
|
1,583
|
||||||||||||||||||||||||||||||
Stock-based compensation
|
5
|
1
|
1,199
|
1,200
|
||||||||||||||||||||||||||||
Exercise of stock options and RSU vesting,
including tax benefit
|
66
|
13
|
855
|
868
|
||||||||||||||||||||||||||||
Withholding tax on vested RSUs
|
(953
|
)
|
(953
|
)
|
||||||||||||||||||||||||||||
Sale of Company stock held by SERP, net
|
48
|
(143
|
)
|
(95
|
)
|
|||||||||||||||||||||||||||
Balance December 31, 2014
|
22,930
|
4,586
|
135,887
|
(12,915
|
)
|
(2,929
|
)
|
467,337
|
4,186
|
596,152
|
||||||||||||||||||||||
Net income
|
32,797
|
(831
|
)
|
31,966
|
||||||||||||||||||||||||||||
Quarterly dividends ($0.10 per share
for 4 quarters) |
8
|
(9,201
|
)
|
(9,193
|
)
|
|||||||||||||||||||||||||||
Other comprehensive loss
|
(10,649
|
)
|
(772
|
)
|
(11,421
|
)
|
||||||||||||||||||||||||||
Change in ownership percentage of subsidiary
|
(663
|
)
|
(663
|
)
|
||||||||||||||||||||||||||||
Stock-based compensation
|
4
|
1
|
1,249
|
1,250
|
||||||||||||||||||||||||||||
RSU vesting, including tax benefit
|
54
|
11
|
406
|
417
|
||||||||||||||||||||||||||||
Withholding tax on vested RSUs
|
(600
|
)
|
(600
|
)
|
||||||||||||||||||||||||||||
Sale of Company stock held by SERP, net
|
933
|
1,151
|
2,084
|
|||||||||||||||||||||||||||||
Other
|
(134
|
)
|
(134
|
)
|
||||||||||||||||||||||||||||
Balance December 31, 2015
|
22,988
|
|
4,598
|
|
137,883
|
|
(23,564
|
)
|
|
(1,778
|
)
|
|
490,933
|
|
1,786
|
|
609,858
|
|||||||||||||||
Net income
|
55,159
|
(171
|
)
|
54,988
|
||||||||||||||||||||||||||||
Quarterly dividends ($0.10 per share
for 4 quarters) |
9
|
(9,226
|
)
|
(9,217
|
)
|
|||||||||||||||||||||||||||
Other comprehensive loss
|
(7,998
|
)
|
34
|
(7,964
|
)
|
|||||||||||||||||||||||||||
Change in ownership percentage of subsidiary
|
(1,322
|
)
|
(1,322
|
)
|
||||||||||||||||||||||||||||
Stock-based compensation
|
5
|
1
|
2,935
|
2,936
|
||||||||||||||||||||||||||||
RSU vesting
|
53
|
10
|
(10
|
)
|
--
|
|||||||||||||||||||||||||||
Withholding tax on vested RSUs
|
(1,024
|
)
|
(1,024
|
)
|
||||||||||||||||||||||||||||
Sale of Company stock held by SERP, net
|
27
|
(180
|
)
|
(153
|
)
|
|||||||||||||||||||||||||||
Cumulative effect of adopting ASU No. 2016-09
|
150
|
(95
|
)
|
55
|
||||||||||||||||||||||||||||
Other
|
684
|
684
|
||||||||||||||||||||||||||||||
Balance December 31, 2016
|
23,046
|
$
|
4,609
|
$
|
139,970
|
$
|
(31,562
|
)
|
$
|
(1,958
|
)
|
$
|
536,771
|
$
|
1,011
|
$
|
648,841
|
Astec Australia Pty Ltd
|
Astec do Brasil Fabricacao de Equipamentos Ltda. (92% owned)
|
Astec, Inc.
|
Astec Insurance Company
|
Astec Mobile Machinery GmbH
|
Astec Mobile Screens, Inc.
|
Breaker Technology, Inc.
|
Breaker Technology Ltd.
|
Carlson Paving Products, Inc.
|
CEI Enterprises, Inc.
|
GEFCO, Inc.
|
Heatec, Inc.
|
Johnson Crushers International, Inc.
|
Kolberg-Pioneer, Inc.
|
Osborn Engineered Products SA (Pty) Ltd
|
Peterson Pacific Corp.
|
(99% owned)
|
Power Flame Incorporated
|
Roadtec, Inc.
|
Telestack Limited
|
Telsmith, Inc.
|
Level 2 - |
Unadjusted quoted prices in active markets for similar assets or liabilities; or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs other than quoted prices that are observable for the asset or liability.
|
Level 3 - |
Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model.
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Allowance balance, beginning of year
|
$
|
1,837
|
$
|
2,248
|
$
|
1,708
|
||||||
Provision
|
280
|
18
|
1,011
|
|||||||||
Write offs
|
(560
|
)
|
(357
|
)
|
(465
|
)
|
||||||
Other
|
(46
|
)
|
(72
|
)
|
(6
|
)
|
||||||
Allowance balance, end of year
|
$
|
1,511
|
$
|
1,837
|
$
|
2,248
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Denominator:
|
||||||||||||
Denominator for basic earnings per share
|
22,992
|
22,934
|
22,819
|
|||||||||
Effect of dilutive securities:
|
||||||||||||
Employee stock options and restricted stock units
|
85
|
123
|
176
|
|||||||||
Supplemental executive retirement plan
|
65
|
63
|
110
|
|||||||||
Denominator for diluted earnings per share
|
23,142
|
23,120
|
23,105
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Raw materials and parts
|
$
|
137,763
|
$
|
141,967
|
||||
Work-in-process
|
115,613
|
113,859
|
||||||
Finished goods
|
84,898
|
104,879
|
||||||
Used equipment
|
22,130
|
24,071
|
||||||
Total
|
$
|
360,404
|
$
|
384,776
|
December 31, 2016
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Trading equity securities:
|
||||||||||||||||
SERP money market fund
|
$
|
92
|
$
|
--
|
$
|
--
|
$
|
92
|
||||||||
SERP mutual funds
|
3,335
|
--
|
--
|
3,335
|
||||||||||||
Preferred stocks
|
475
|
--
|
--
|
475
|
||||||||||||
Trading debt securities:
|
||||||||||||||||
Corporate bonds
|
5,413
|
--
|
--
|
5,413
|
||||||||||||
Municipal bonds
|
--
|
2,248
|
--
|
2,248
|
||||||||||||
Floating rate notes
|
118
|
--
|
--
|
118
|
||||||||||||
U.S. Treasury bills
|
388
|
--
|
--
|
388
|
||||||||||||
Asset backed securities
|
--
|
637
|
--
|
637
|
||||||||||||
Other
|
--
|
2,283
|
--
|
2,283
|
||||||||||||
Derivative financial instruments
|
--
|
144
|
--
|
144
|
||||||||||||
Total financial assets
|
$
|
9,821
|
$
|
5,312
|
$
|
--
|
$
|
15,133
|
||||||||
Financial Liabilities:
|
||||||||||||||||
SERP liabilities
|
$
|
--
|
$
|
7,882
|
$
|
--
|
$
|
7,882
|
||||||||
Derivative financial instruments
|
--
|
89
|
--
|
89
|
||||||||||||
Total financial liabilities
|
$
|
--
|
$
|
7,971
|
$
|
--
|
$
|
7,971
|
December 31, 2015
|
||||||||||||||||
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Financial Assets:
|
||||||||||||||||
Trading equity securities:
|
||||||||||||||||
SERP money market fund
|
$
|
445
|
$
|
--
|
$
|
--
|
$
|
445
|
||||||||
SERP mutual funds
|
2,864
|
--
|
--
|
2,864
|
||||||||||||
Preferred stocks
|
742
|
--
|
--
|
742
|
||||||||||||
Trading debt securities:
|
||||||||||||||||
Corporate bonds
|
3,756
|
141
|
--
|
3,897
|
||||||||||||
Municipal bonds
|
--
|
1,811
|
--
|
1,811
|
||||||||||||
Floating rate notes
|
84
|
--
|
--
|
84
|
||||||||||||
U.S. Treasury bills
|
404
|
--
|
--
|
404
|
||||||||||||
Savings bonds
|
77
|
--
|
--
|
77
|
||||||||||||
Other
|
--
|
2,755
|
--
|
2,755
|
||||||||||||
Derivative financial instruments
|
--
|
1,265
|
--
|
1,265
|
||||||||||||
Total financial assets
|
$
|
8,372
|
$
|
5,972
|
$
|
--
|
$
|
14,344
|
||||||||
Financial Liabilities:
|
||||||||||||||||
SERP liabilities
|
$
|
--
|
$
|
5,869
|
$
|
--
|
$
|
5,869
|
||||||||
Derivative financial instruments
|
--
|
22
|
-- |
22
|
||||||||||||
Total financial liabilities
|
$
|
--
|
$
|
5,891
|
$
|
--
|
$
|
5,891
|
Amortized
Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair Value
(Net Carrying
Amount) |
|||||||||||||
December 31, 2016
|
||||||||||||||||
Trading equity securities
|
$
|
3,980
|
$
|
40
|
$
|
118
|
$
|
3,902
|
||||||||
Trading debt securities
|
11,312
|
23
|
248
|
11,087
|
||||||||||||
Total
|
$
|
15,292
|
$
|
63
|
$
|
366
|
$
|
14,989
|
||||||||
December 31, 2015
|
||||||||||||||||
Trading equity securities
|
$
|
4,160
|
$
|
79
|
$
|
188
|
$
|
4,051
|
||||||||
Trading debt securities
|
9,263
|
37
|
272
|
9,028
|
||||||||||||
Total
|
$
|
13,423
|
$
|
116
|
$
|
460
|
$
|
13,079
|
Infrastructure
Group |
Aggregate
and Mining Group |
Energy
Group |
Corporate
|
Total
|
||||||||||||||||
Balance, December 31, 2014
|
$
|
8,584
|
$
|
23,411
|
$
|
--
|
$
|
--
|
$
|
31,995
|
||||||||||
Purchase price adjustment
|
--
|
(178
|
)
|
--
|
--
|
(178
|
)
|
|||||||||||||
Foreign currency translation
|
(103
|
)
|
(879
|
)
|
--
|
--
|
(982
|
)
|
||||||||||||
Balance, December 31, 2015
|
8,481
|
22,354
|
--
|
--
|
30,835
|
|||||||||||||||
Acquisition
|
--
|
--
|
12,632
|
--
|
12,632
|
|||||||||||||||
Foreign currency translation
|
(33
|
)
|
(2,630
|
)
|
--
|
--
|
(2,663
|
)
|
||||||||||||
Balance, December 31, 2016
|
$
|
8,448
|
$
|
19,724
|
$
|
12,632
|
$
|
--
|
$
|
40,804
|
2016
|
2015
|
|||||||||||||||||||||||
Gross Carrying
Value |
Accumulated
Amortization |
Net Carrying
Value |
Gross Carrying
Value |
Accumulated
Amortization |
Net Carrying
Value |
|||||||||||||||||||
Dealer network and customer
relationships
|
$
|
26,035
|
$
|
7,584
|
$
|
18,451
|
$
|
13,111
|
$
|
5,552
|
$
|
7,559
|
||||||||||||
Trade names
|
7,021
|
1,362
|
5,659
|
4,857
|
956
|
3,901
|
||||||||||||||||||
Other
|
5,764
|
3,231
|
2,533
|
4,966
|
2,849
|
2,117
|
||||||||||||||||||
Total
|
$
|
38,820
|
$
|
12,177
|
$
|
26,643
|
$
|
22,934
|
$
|
9,357
|
$
|
13,577
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Land
|
$
|
14,768
|
$
|
12,628
|
||||
Building and land improvements
|
140,229
|
132,353
|
||||||
Manufacturing and office equipment
|
231,816
|
214,545
|
||||||
Aviation equipment
|
14,169
|
14,151
|
||||||
Less accumulated depreciation
|
(220,444
|
)
|
(203,471
|
)
|
||||
Total
|
$
|
180,538
|
$
|
170,206
|
2017
|
$
|
1,337
|
||
2018
|
978
|
|||
2019
|
669
|
|||
2020
|
465
|
|||
2021
|
177
|
|||
Thereafter
|
21
|
|||
$
|
3,647
|
2016
|
2015
|
2014
|
||||||||||
Reserve balance, beginning of year
|
$
|
9,100
|
$
|
10,032
|
$
|
12,716
|
||||||
Warranty liabilities accrued
|
18,912
|
13,743
|
12,796
|
|||||||||
Warranty liabilities settled
|
(15,125
|
)
|
(14,177
|
)
|
(15,563
|
)
|
||||||
Other
|
269
|
(498
|
)
|
83
|
||||||||
Reserve balance, end of year
|
$
|
13,156
|
$
|
9,100
|
$
|
10,032
|
Pension Benefits
|
||||||||
2016
|
2015
|
|||||||
Change in benefit obligation
|
||||||||
Benefit obligation, beginning of year
|
$
|
15,565
|
$
|
15,986
|
||||
Interest cost
|
650
|
596
|
||||||
Actuarial (gain)/loss
|
514
|
(417
|
)
|
|||||
Benefits paid
|
(625
|
)
|
(600
|
)
|
||||
Benefit obligation, end of year
|
16,104
|
15,565
|
||||||
Accumulated benefit obligation
|
|
16,104
|
|
15,565
|
||||
Change in plan assets
|
||||||||
Fair value of plan assets, beginning of year
|
|
12,688
|
|
13,283
|
||||
Actual gain/(loss) on plan assets
|
763
|
(279
|
)
|
|||||
Employer contribution
|
415
|
284
|
||||||
Benefits paid
|
(625
|
)
|
(600
|
)
|
||||
Fair value of plan assets, end of year
|
13,241
|
12,688
|
||||||
Funded status, end of year
|
$
|
(2,863
|
)
|
$
|
(2,877
|
)
|
||
Amounts recognized in the consolidated balance sheets
|
||||||||
Noncurrent liabilities
|
$
|
(2,863
|
)
|
$
|
(2,877
|
)
|
||
Net amount recognized
|
$
|
(2,863
|
)
|
$
|
(2,877
|
)
|
||
Amounts recognized in accumulated other comprehensive loss
consist of
|
||||||||
Net loss
|
$
|
6,152
|
$
|
6,098
|
||||
Net amount recognized
|
$
|
6,152
|
$
|
6,098
|
||||
Weighted average assumptions used to determine benefit obligations as of December 31
|
||||||||
Discount rate
|
4.00
|
%
|
4.28
|
%
|
||||
Expected return on plan assets
|
6.25
|
%
|
7.00
|
%
|
||||
Rate of compensation increase
|
N/A
|
N/A
|
Actual Allocation
|
2016 & 2015 Target | |||||||||||
Asset Category
|
2016
|
2015
|
Allocation Ranges
|
|||||||||
Equity securities
|
63.6
|
%
|
66.0
|
%
|
53 - 73
|
%
|
||||||
Debt securities
|
33.5
|
%
|
30.7
|
%
|
21 - 41
|
%
|
||||||
Money market funds
|
2.9
|
%
|
3.3
|
%
|
0 - 15
|
%
|
||||||
Total
|
100.0
|
%
|
100.0
|
%
|
Pension Benefits
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Components of net periodic benefit cost
|
||||||||||||
Interest cost
|
$
|
650
|
$
|
596
|
$
|
620
|
||||||
Expected return on plan assets
|
(782
|
)
|
(840
|
)
|
(816
|
)
|
||||||
Amortization of actuarial loss
|
480
|
500
|
295
|
|||||||||
Net periodic benefit cost
|
|
348
|
|
256
|
|
99
|
||||||
Other changes in plan assets and benefit obligations recognized in
other comprehensive income
|
||||||||||||
Net actuarial loss for the year
|
|
533
|
|
702
|
|
2,115
|
||||||
Amortization of net loss
|
(480
|
)
|
(500
|
)
|
(295
|
)
|
||||||
Total recognized in other comprehensive income
|
53
|
202
|
1,820
|
|||||||||
Total recognized in net periodic benefit cost and other comprehensive income
|
$
|
401
|
$
|
458
|
$
|
1,919
|
||||||
Weighted average assumptions used to determine net periodic benefit cost for years ended December 31
|
||||||||||||
Discount rate
|
4.28
|
%
|
3.81
|
%
|
4.60
|
%
|
||||||
Expected return on plan assets
|
7.00
|
%
|
7.00
|
%
|
7.00
|
%
|
Pension Benefits
|
||||
2017
|
$
|
730
|
||
2018
|
780
|
|||
2019
|
840
|
|||
2020
|
870
|
|||
2021
|
900
|
|||
2022 - 2025
|
4,780
|
December 31, 2016
|
December 31, 2015
|
|||||||||||||||
Cost
|
Market
|
Cost
|
Market
|
|||||||||||||
Company stock
|
$
|
1,958
|
$
|
3,428
|
$
|
1,778
|
$
|
2,560
|
||||||||
Equity securities
|
3,474
|
4,454
|
3,402
|
3,309
|
||||||||||||
Total
|
$
|
5,432
|
$
|
7,882
|
$
|
5,180
|
$
|
5,869
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
United States
|
$
|
87,326
|
$
|
57,846
|
$
|
57,651
|
||||||
Foreign
|
(231
|
)
|
(5,873
|
)
|
(4,045
|
)
|
||||||
Income before income taxes
|
$
|
87,095
|
$
|
51,973
|
$
|
53,606
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Current provision:
|
||||||||||||
Federal
|
$
|
30,623
|
$
|
19,758
|
$
|
18,713
|
||||||
State
|
4,098
|
2,553
|
2,992
|
|||||||||
Foreign
|
907
|
255
|
243
|
|||||||||
Total current provision
|
35,628
|
22,566
|
21,948
|
|||||||||
Deferred provision (benefit):
|
||||||||||||
Federal
|
(2,653
|
)
|
(1,183
|
)
|
(1,627
|
)
|
||||||
State
|
(1,213
|
)
|
(275
|
)
|
(222
|
)
|
||||||
Foreign
|
345
|
(1,101
|
)
|
(699
|
)
|
|||||||
Total deferred benefit
|
(3,521
|
)
|
(2,559
|
)
|
(2,548
|
)
|
||||||
Total provision (benefit):
|
||||||||||||
Federal
|
27,970
|
18,575
|
17,086
|
|||||||||
State
|
2,885
|
2,278
|
2,770
|
|||||||||
Foreign
|
1,252
|
(846
|
)
|
(456
|
)
|
|||||||
Total tax provision
|
$
|
32,107
|
$
|
20,007
|
$
|
19,400
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Tax at the statutory federal income tax rate
|
$
|
30,483
|
$
|
18,191
|
$
|
18,762
|
||||||
Qualified production activity deduction
|
(1,641
|
)
|
(1,174
|
)
|
(1,360
|
)
|
||||||
State income tax, net of federal income tax
|
1,876
|
1,386
|
1,727
|
|||||||||
Other permanent differences
|
673
|
393
|
840
|
|||||||||
Research and development tax credits
|
(785
|
)
|
(291
|
)
|
(1,323
|
)
|
||||||
Change in valuation allowance
|
1,638
|
2,036
|
1,675
|
|||||||||
Other items
|
(137
|
)
|
(534
|
)
|
(921
|
)
|
||||||
Total tax provision
|
$
|
32,107
|
$
|
20,007
|
$
|
19,400
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Deferred tax assets:
|
||||||||
Inventory reserves
|
$
|
8,507
|
$
|
7,828
|
||||
Warranty reserves
|
4,527
|
2,852
|
||||||
Bad debt reserves
|
456
|
436
|
||||||
State tax loss carryforwards
|
3,403
|
3,006
|
||||||
Accrued vacation
|
2,351
|
2,174
|
||||||
SERP
|
299
|
275
|
||||||
Deferred compensation
|
2,124
|
1,328
|
||||||
Restricted stock units
|
1,845
|
1,893
|
||||||
Pension and post-employment benefits
|
2,530
|
2,571
|
||||||
Foreign net operating losses
|
5,461
|
5,134
|
||||||
Other
|
2,516
|
9,315
|
||||||
Valuation allowances
|
(8,280
|
)
|
(8,065
|
)
|
||||
Total deferred tax assets
|
25,739
|
28,747
|
||||||
Deferred tax liabilities:
|
||||||||
Property and equipment
|
20,167
|
19,799
|
||||||
Intangibles
|
1,244
|
1,961
|
||||||
Goodwill
|
1,605
|
1,835
|
||||||
Pension
|
1,205
|
1,305
|
||||||
Outside basis differences
|
511
|
--
|
||||||
Total deferred tax liabilities
|
24,732
|
24,900
|
||||||
Total net deferred assets
|
$
|
1,007
|
$
|
3,847
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Balance, beginning of year
|
$
|
603
|
$
|
2,585
|
$
|
1,933
|
||||||
Additions for tax positions related to the current year
|
73
|
206
|
127
|
|||||||||
Additions for tax positions related to prior years
|
162
|
549
|
525
|
|||||||||
Reductions due to lapse of statutes of limitations
|
(16
|
)
|
(162
|
)
|
--
|
|||||||
Decreases related to settlements with tax authorities
|
(584
|
)
|
(2,575
|
)
|
--
|
|||||||
Balance, end of year
|
$
|
238
|
$
|
603
|
$
|
2,585
|
2016
|
Weighted Average
Grant Date Fair Value |
|||||||
Unvested restricted stock units, beginning of year
|
147
|
$
|
36.83
|
|||||
Units granted
|
44
|
44.52
|
||||||
Units forfeited
|
(1
|
)
|
39.10
|
|||||
Units vested
|
(78
|
)
|
34.42
|
|||||
Unvested restricted stock units, end of year
|
112
|
41.48
|
Infrastructure
Group |
Aggregate
and Mining Group |
Energy
Group |
Corporate
|
Total
|
||||||||||||||||
Revenues from external customers
|
$
|
608,908
|
$
|
359,760
|
$
|
178,763
|
$
|
--
|
$
|
1,147,431
|
||||||||||
Intersegment revenues
|
16,957
|
35,031
|
24,946
|
--
|
76,934
|
|||||||||||||||
Interest expense
|
31
|
948
|
4
|
412
|
1,395
|
|||||||||||||||
Depreciation and amortization
|
7,205
|
10,033
|
6,655
|
920
|
24,813
|
|||||||||||||||
Income taxes
|
3,033
|
664
|
437
|
27,973
|
32,107
|
|||||||||||||||
Profit (loss)
|
71,482
|
34,877
|
4,145
|
(55,992
|
)
|
54,512
|
||||||||||||||
Assets
|
657,225
|
518,351
|
271,121
|
417,351
|
1,864,048
|
|||||||||||||||
Capital expenditures
|
14,451
|
7,437
|
5,018
|
178
|
27,084
|
Infrastructure
Group |
Aggregate
and Mining Group |
Energy
Group |
Corporate
|
Total
|
||||||||||||||||
Revenues from external customers
|
$
|
428,737
|
$
|
370,813
|
$
|
183,607
|
$
|
--
|
$
|
983,157
|
||||||||||
Intersegment revenues
|
22,947
|
28,701
|
16,010
|
--
|
67,658
|
|||||||||||||||
Interest expense
|
258
|
1,005
|
10
|
338
|
1,611
|
|||||||||||||||
Depreciation and amortization
|
6,907
|
10,719
|
5,553
|
899
|
24,078
|
|||||||||||||||
Income taxes
|
1,224
|
764
|
(129
|
)
|
18,148
|
20,007
|
||||||||||||||
Profit (loss)
|
33,890
|
30,690
|
3,609
|
(36,623
|
)
|
31,566
|
||||||||||||||
Assets
|
567,936
|
496,089
|
256,978
|
306,511
|
1,627,514
|
|||||||||||||||
Capital expenditures
|
8,043
|
8,807
|
4,049
|
389
|
21,288
|
Infrastructure
Group |
Aggregate
and Mining Group |
Energy
Group |
Corporate
|
Total
|
||||||||||||||||
Revenues from external customers
|
$
|
386,356
|
$
|
384,883
|
$
|
204,356
|
$
|
--
|
$
|
975,595
|
||||||||||
Intersegment revenues
|
26,661
|
33,009
|
17,548
|
--
|
77,218
|
|||||||||||||||
Interest expense
|
31
|
463
|
11
|
215
|
720
|
|||||||||||||||
Depreciation and amortization
|
7,045
|
10,120
|
6,358
|
853
|
24,376
|
|||||||||||||||
Income taxes
|
1,365
|
1,235
|
348
|
16,452
|
19,400
|
|||||||||||||||
Profit (loss)
|
29,477
|
32,900
|
10,316
|
(35,270
|
)
|
37,423
|
||||||||||||||
Assets
|
539,794
|
494,428
|
244,003
|
302,082
|
1,580,307
|
|||||||||||||||
Capital expenditures
|
5,375
|
16,169
|
2,875
|
413
|
24,832
|
2016
|
2015
|
2014
|
||||||||||
Net income attributable to controlling interest
|
||||||||||||
Total profit for reportable segments
|
$
|
110,504
|
$
|
68,189
|
$
|
72,693
|
||||||
Corporate expenses, net
|
(55,992
|
)
|
(36,623
|
)
|
(35,270
|
)
|
||||||
Net loss attributable to non-controlling interest
|
171
|
831
|
252
|
|||||||||
Recapture (elimination) of intersegment profit
|
476
|
400
|
(3,217
|
)
|
||||||||
Total consolidated net income attributable to controlling interest
|
$
|
55,159
|
$
|
32,797
|
$
|
34,458
|
||||||
Assets
|
||||||||||||
Total assets for reportable segments
|
$
|
1,446,697
|
$
|
1,321,003
|
$
|
1,278,225
|
||||||
Corporate assets
|
417,351
|
306,511
|
302,082
|
|||||||||
Elimination of intercompany profit in inventory
|
(7,020
|
)
|
(7,496
|
)
|
(7,896
|
)
|
||||||
Elimination of intercompany receivables
|
(688,369
|
)
|
(583,834
|
)
|
(515,625
|
)
|
||||||
Elimination of investment in subsidiaries
|
(272,766
|
)
|
(223,500
|
)
|
(227,051
|
)
|
||||||
Other eliminations
|
(52,292
|
)
|
(35,331
|
)
|
(27,470
|
)
|
||||||
Total consolidated assets
|
$
|
843,601
|
$
|
777,353
|
$
|
802,265
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
United States
|
$
|
941,273
|
$
|
722,287
|
$
|
654,230
|
||||||
Canada
|
37,539
|
54,321
|
61,898
|
|||||||||
Africa
|
31,557
|
45,671
|
47,940
|
|||||||||
Australia and Oceania
|
29,948
|
29,995
|
34,772
|
|||||||||
South America (excluding Brazil)
|
28,204
|
32,454
|
49,797
|
|||||||||
Other European Countries
|
19,198
|
23,867
|
12,365
|
|||||||||
Mexico
|
13,489
|
6,990
|
9,993
|
|||||||||
Japan and Korea
|
10,825
|
3,574
|
4,377
|
|||||||||
Other Asian Countries
|
6,926
|
9,513
|
17,018
|
|||||||||
Central America (excluding Mexico)
|
5,904
|
4,404
|
9,275
|
|||||||||
China
|
4,595
|
1,330
|
7,451
|
|||||||||
Brazil
|
4,300
|
8,376
|
12,869
|
|||||||||
Middle East
|
3,403
|
18,995
|
13,327
|
|||||||||
Post-Soviet States (excluding Russia)
|
3,293
|
8,345
|
8,245
|
|||||||||
Russia
|
3,185
|
8,466
|
25,589
|
|||||||||
West Indies
|
2,994
|
1,532
|
4,478
|
|||||||||
India
|
318
|
2,706
|
1,743
|
|||||||||
Other
|
480
|
331
|
228
|
|||||||||
Total foreign
|
206,158
|
260,870
|
321,365
|
|||||||||
Total consolidated sales
|
$
|
1,147,431
|
$
|
983,157
|
$
|
975,595
|
December 31
|
||||||||
2016
|
2015
|
|||||||
United States
|
$
|
151,470
|
$
|
141,727
|
||||
Brazil
|
11,288
|
9,780
|
||||||
South Africa
|
5,372
|
5,116
|
||||||
Northern Ireland
|
4,279
|
5,116
|
||||||
Australia
|
4,234
|
4,351
|
||||||
Canada
|
2,860
|
2,987
|
||||||
Germany
|
1,035
|
1,129
|
||||||
Total foreign
|
29,068
|
28,479
|
||||||
Total
|
$
|
180,538
|
$
|
170,206
|
December 31
|
||||||||
2016
|
2015
|
|||||||
Foreign currency translation adjustment
|
$
|
(27,839
|
)
|
$
|
(19,891
|
)
|
||
Unrecognized pension and post-retirement benefit cost, net of tax of
$2,261 and $2,232, respectively
|
(3,723
|
)
|
(3,673
|
)
|
||||
Accumulated other comprehensive loss
|
$
|
(31,562
|
)
|
$
|
(23,564
|
)
|
Year Ended December 31
|
||||||||||||
2016
|
2015
|
2014
|
||||||||||
Investment income (loss)
|
$
|
(276
|
)
|
$
|
(381
|
)
|
$
|
64
|
||||
Licensing fees
|
546
|
641
|
831
|
|||||||||
Income from life insurance policies
|
--
|
1,204
|
--
|
|||||||||
Other
|
259
|
1,591
|
312
|
|||||||||
Total
|
$
|
529
|
$
|
3,055
|
$
|
1,207
|
Notes:
|
A. Data complete through last fiscal year.
|
B. Corporate Performance Graph with peer group uses peer group only performance (excludes only company).
|
C. Peer group indices use beginning of period market capitalization weighting |
D. Prepared by Zacks Investment Research, Inc. Used with permission. All rights reserved Copyright 1980-2017.
|
E. Calculated (or Derived) based from CRSP NYSE/AMEX/NASDAQ Market (US Companies), Center for Research in
Security Prices (CRSP®), Graduate School of Business, The University of Chicago. Copyright 2016. Used with permission. All rights reserved. |
F. The graph assumes $100 invested at the closing price of the Company's common stock on December 31, 2011
and assumes that all dividends were invested on the date paid. |
ASTEC INDUSTRIES, INC
.
(Registrant)
|
||
BY:
/s/ Benjamin J. Brock
|
||
Benjamin J. Brock, Chief Executive
Officer and Director |
||
SIGNATURE
|
TITLE
|
DATE
|
||
/s/ Benjamin G. Brock
|
Chief Executive Officer and President (Principal Executive Officer) and Director
|
March 1, 2017
|
||
Benjamin G. Brock | ||||
/s/ David C. Silvious
|
Chief Financial Officer, Vice President and Treasurer (Principal Financial and Accounting Officer)
|
March 1, 2017
|
||
David C. Silvious
|
||||
/s/ W. Norman Smith
|
Director
|
February 23, 2017
|
||
W. Norman Smith
|
||||
/s/ William B. Sansom
|
Director
|
February 23, 2017
|
||
William B. Sansom
|
||||
/s/ Charles F. Potts
|
Director
|
February 23, 2017
|
||
Charles F. Potts
|
||||
/s/ Glen E. Tellock
|
Director
|
February 23, 2017
|
||
Glen E. Tellock
|
||||
/s/ William D. Gehl
|
Director
|
February 23, 2017
|
||
William D. Gehl
|
||||
/s/ Daniel K. Frierson
|
Director
|
February 23, 2017
|
||
Daniel K. Frierson
|
||||
/s/ William G. Dorey
|
Director
|
February 23, 2017
|
||
William G. Dorey
|
||||
/s/ James B. Baker
|
Director
|
February 23, 2017
|
||
James B. Baker
|
Exhibit Number
|
Description
|
|
10.19
|
Astec Industries, Inc. Amended and Restated Non-Employee Directors Compensation Plan, original effective April 23, 1998 with amended and restated provisions effective April 29, 2016.
|
|
Exhibit 21
|
Subsidiaries of the Registrant.
|
|
Exhibit 23.1
|
Consent of Independent Registered Public Accounting Firm.
|
|
Exhibit 23.2
|
Consent of Independent Registered Public Accounting Firm.
|
|
Exhibit 31.1
|
Certification pursuant to Rule 13a-14(a)/15d-14(a),
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|
Exhibit 31.2
|
Certification pursuant to Rule 13a-14(a)/15d-14(a),
as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
|
Exhibit 32
|
Certification pursuant to Rule 13a-14(b)/15d-14(b) of the Securities Exchange
Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
|
101.INS
|
XBRL Instance Document
|
|
101.SCH
|
XBRL Taxonomy Extension Schema
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase
|
Service Description
|
Amount
|
|||
Non-Executive Chairman
|
$
|
30,000
|
||
Lead Director
|
$
|
15,000
|
Audit Committee Chair
|
$
|
15,000
|
||
Compensation Committee Chair
|
$
|
10,000
|
||
Nominating and Governance Committee Chair
|
$
|
10,000
|
||
Audit Committee member
|
$
|
7,500
|
||
Compensation Committee member
|
$
|
5,000
|
||
Nominating and Governance Committee member
|
$
|
5,000
|
EXHIBIT 21
|
|||||
LIST OF
SUBSIDIARIES |
|||||
Name
|
Percentage Owned
|
Jurisdiction of Incorporation
|
|||
Astec Australia Pty Ltd
|
100
|
Australia
|
|||
Astec do Brasil Fabricacao de Equipamentos Ltda.
|
92
|
Brazil
|
|||
Astec, Inc.
|
100
|
Tennessee
|
|||
Astec Insurance Company
|
100
|
Vermont
|
|||
Astec Mobile Machinery GmbH
|
100
|
Germany
|
|||
Astec Mobile Screens, Inc.
|
100
|
Nevada
|
|||
Breaker Technology, Inc.
|
100
|
Tennessee
|
|||
Breaker Technology Ltd
|
100
|
Ontario, Canada
|
|||
Carlson Paving Products, Inc.
|
100
|
Washington
|
|||
CEI Enterprises, Inc.
|
100
|
Tennessee
|
|||
GEFCO, Inc.
|
100
|
Tennessee
|
|||
Heatec, Inc.
|
100
|
Tennessee
|
|||
Johnson Crushers International, Inc.
|
100
|
Tennessee
|
|||
Kolberg-Pioneer, Inc.
|
100
|
Tennessee
|
|||
Osborn Engineered Products SA (Pty) Ltd
|
99
|
South Africa
|
|||
Peterson Pacific Corp.
|
100
|
Oregon
|
|||
Power Flame Incorporated
|
100
|
Kansaa
|
|||
Roadtec, Inc.
|
100
|
Tennessee
|
|||
Telestack, Limited
|
100
|
Northern Ireland
|
|||
Telsmith, Inc.
|
100
|
Delaware
|
|||
1. |
I have reviewed this annual report on Form 10-K of Astec Industries, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
/s/ Benjamin G. Brock
|
||
Benjamin G. Brock
|
||
President and CEO
|
||
(Principal Executive Officer)
|
1. |
I have reviewed this annual report on Form 10-K of Astec Industries, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
|
/s/ David C. Silvious
|
||
David C. Silvious
|
||
CFO, Vice President and Treasurer
|
||
(Principal Financial Officer)
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|