Astec Industries
Annual Report 2022

Plain-text annual report

2022 ANNUAL REPORT ASPHALT • CONCRETE • CRUSHING• INDUSTRIAL HEATING SYSTEMS • MATERIAL HANDLING • ROAD CONSTRUCTION FORESTRY & ENVIRONMENTAL RECYCLING • MOBILE CRUSHING & SCREENING • ROCK BREAKER TECHNOLOGY SCREENS & FEEDERS • WASHING & CLASSIFYING About the Company Astec is a leading manufacturer of equipment for asphalt road building, aggregate processing, concrete production and environmental recycling. Products include rock crushing and screening plants, hot mix asphalt facilities, concrete plants, milling machines, asphalt pavers, material transfer vehicles and horizontal grinding equipment. Rock to Road® Value Chain Astec offers a full line of high-quality products to facilitate construction from Rock to Road. This allows customers to choose the equipment and parts they need from one trusted source. OneASTEC makes the purchasing process easier while providing greater value to the customer. INFRASTRUCTURE SOLUTIONS MATERIALS SOLUTIONS Asphalt and Concrete Plants, Industrial Heating, Construction Machinery Crushing & Screening For Raw Materials 2022 ANNUAL REPORT 1 AT A GLANCE Headquarters Chattanooga, TN, USA Stock Symbol NASDAQ: ASTE Employees ~4,300 Market-cap $1.0 Billion* *As of February 24, 2023 Purpose Built to Connect Vision To connect people, processes and products while advancing innovative solutions from Rock to Road as OneASTEC. Core Values Safety Integrity Devotion Respect Innovation 2 ASTEC INDUSTRIES, INC. Performance at a Glance Data (in millions, except per share amounts) CONSOLIDATED NET SALES $1,274.5 $1,095.5 $1,024.4 Year Ended December 31, 2022 Year Ended December 31, 2021 Year Ended December 31, 2020 SEGMENT NET SALES: Infrastructure Solutions Materials Solutions Corporate and Other TOTAL CONSOLIDATED NET SALES SALES BY GEOGRAPHIC REGION: United States Canada Australia and Oceania Africa Europe Brazil South America (Excluding Brazil) Asia Mexico Central America (Excluding Mexico) Other TOTAL FOREIGN TOTAL CONSOLIDATED NET SALES $847.4 422.7 4.4 $1,274.5 $1,014.3 63.0 46.7 36.1 31.0 24.8 20.0 13.6 10.7 10.7 3.6 $260.2 $1,274.5 $743.4 352.1 - $1,095.5 $842.1 68.1 43.4 33.9 38.9 21.5 15.2 10.8 13.5 3.9 4.2 $253.4 $1,095.5 $703.1 321.3 - $1,024.4 $817.0 57.9 28.5 22.4 30.3 20.4 21.9 12.5 2.9 1.3 9.3 $207.4 $1,024.4 DILUTED EARNINGS PER SHARE $ - $0.69 $2.01 DIVIDEND PAID PER SHARE Q1 Q2 Q3 Q4 TOTAL $0.12 0.12 0.12 0.13 $0.49 $0.11 0.11 0.11 0.12 $0.45 $0.11 0.11 0.11 0.11 $0.44 2022 ANNUAL REPORT 3 Investing In OUR FUTURE JACO VAN DER MERWE CEO AND PRESIDENT I am inspired by our Purpose – Built to Connect and take pride that our equipment builds the infrastructure that connects family, friends and communities. Dear Fellow Shareholders It was a milestone year for Astec as we commemorated our 50th anniversary in August 2022. While we took a moment to celebrate and reflect on our rich history, we never stopped moving forward. Guided by our OneASTEC business model, we continued to invest in our future with new products, technology, capital projects and business processes. It is an honor and a privilege to lead such a world class organization into its next chapter. During my last six years at Astec I have become increasingly convinced we have the greatest employees, customers and products. I am inspired by our Purpose – Built to Connect and take pride that our equipment builds the infrastructure that connects family, friends and communities. Our Purpose is at the core of our OneASTEC business model. It kept us centered as we navigated industry-wide challenges such as inflation, supply chain issues and labor shortages. We proactively engaged with our supply chain partners to find solutions; invested in our systems and operations to increase capacity; and implemented programs to attract and retain talent. We will continue to Simplify and Grow our business as we Focus on performance through execution. 4 ASTEC INDUSTRIES, INC. 66% Infrastructure Solutions 33% Materials Solutions 2022 NET SALES BY SEGMENT 1% Corporate and Other 80% Domestic 20% International 2022 NET SALES BY GEOGRAPHY 1.3 1.2 1.1 1.0 2022 2021 2020 2019 CONSOLIDATED NET SALES (IN BILLIONS) The Future is Now We continued to invest in digital solutions to enable our customers to operate more efficiently. We are in a unique position to provide an integrated digital platform across our Rock to Road value chain and complementary products as we offer game changing solutions for our customers. In 2022, we strengthened our commitment by acquiring MINDS Automation Group, Inc. (MINDS). The MINDS team joined Astec Controls and Grathwol Automation to create the foundation for our Astec Digital organization which has some exciting plans for this year. Our Transformation Considerable progress was made in our customer-focused transformation. The investment in systems and processes will enable us to operate more efficiently. Implementing company- wide Enterprise Resource Planning, Human Capital Management and Customer Experience systems will position us for future growth. This transformation is a journey and work will continue into 2023, and beyond, with a series of strategic, phased launches of enhanced systems. 2022 ANNUAL REPORT 5 Furthering Sustainability Sustainability is built into our business model with a focus on our products and operations. We are actively establishing our baselines of utility usage and greenhouse gas emissions. Once complete, these baselines will serve as a roadmap to achieve targeted goals. To further evidence our commitment to sustainability, we joined the National Asphalt Pavement Association’s “The Road Forward” program in 2022. This program is an industry-wide initiative to engage, educate and empower the U.S. asphalt community to pursue the production of zero carbon emission asphalt pavements by 2050. We also joined the Department of Energy Better Plants program which works with leading U.S. manufacturers to set and achieve voluntary energy performance goals. Looking Ahead We move into 2023 excited about the opportunities ahead. Customer demand remains strong in the U.S. and internationally. Our Rock to Road product portfolio, along with our complementary forestry, environmental recycling, and industrial heating products, create value for customers and in turn, our shareholders. Our employees, who are our true competitive advantage, are united by Purpose and guided by our Core Values. I am excited about what we will achieve together. Best, Jaco van der Merwe President and CEO Astec Industries, Inc. Providing Digital Solutions for Our Customers Our customers are seeking new ways to improve their efficiency and competitiveness. They are asking for digital solutions that help them with things like maintenance, inventory, fuel and operations in real time. It’s all part of a digital transformation happening across the construction industry. Astec is in a unique position to create value for our customers by developing a digital platform across our Rock to Road portfolio of products. As a market leader, our extensive equipment knowledge pairs well with technology to create an integrated system. We can deploy technology at scale as well as provide long-term support and training. In 2022, we welcomed a new Chief Technology Officer & President of Digital and Innovation to develop our vision and roadmap for technological innovation as OneASTEC. In January 2023, we launched the Astec Digital Suite. The suite represents new and existing solutions across controls, data and process intelligence, telematics and robotics.. 2022 ANNUAL REPORT 7 New Products and Features in our Rock to Road® Value Chain We are committed to delivering innovative, high-quality products that deliver value for our customers. High Frequency Portable Screening Plant The plant is equipped with an 8-foot-wide high frequency screen, the first of its kind for the industry. The patent-pending screen design features externally-mounted vibrators at the ends of the tappets for a more aggressive screening action. It also allows for easier maintenance and adjustments. The screen is equipped with hydraulic operating angle adjustment, a fines collection hopper, top- and bottom-deck discharge chutes and an aggregate spreader. 8 ASTEC INDUSTRIES, INC. BreakerBOSS 5D Mobile Rock Breaker The new mobile rock breaker, the BreakerBOSS 5D, is used for breaking oversized material in underground mines, typically broken at draw points and grizzly stations where rock must keep flowing. The machine includes a conveniently center- mounted operating cabin for maximum visibility, heavy-duty, tube-in-tube stabilizers at each corner of the machine and manual boom/carrier and breaker lubrication systems. The BreakerBOSS5D also features a large-coverage boom for extended vertical and horizontal reach and a compact tram design for easy maneuvering. 2022 ANNUAL REPORT 9 Astec Batch Tower The versatile Astec Batch Tower builds upon the Astec legacy of delivering sound performance paired with exceptional technology. This freshly redesigned batch tower is offered in a broad range of mixing capacity with varying volumes of hot bin storage. 10 ASTEC INDUSTRIES, INC. 2021 ANNUAL REPORT Astec Portable Self-Erect Storage Silo The NTEP Certified Astec Self-Erect Storage Silo offers overnight storage capabilities. An optional oil-sealed gate and an enclosed silo top equipped with a grease seal to prevent oxygen penetration to allow longer-term storage. The silo and drag share a common chassis and are erected together using hydraulic cylinders. RP-Series Paver Control System The RP paver line has been updated with operator controls that provide improved functionality and a compact, modern feel. All highway class asphalt pavers are now outfitted with an innovative digital control system and easy-to- understand touch screen interface. These advanced updates deliver a balance of intuitive technology and simplified operation, providing the durability and serviceability Astec customers expect. 2022 ANNUAL REPORT 11 Executive Leadership Team Jaco van der Merwe President & CEO Becky Weyenberg Chief Financial Officer Anshu Pasricha General Counsel, Corporate Secretary and Chief Compliance Officer Tim Averkamp Group President Steve Anderson SVP of Administration and Investor Relations Michael Norris SVP, International and Aftermarket Sales Aletheia Silcott Global Vice President of Human Resources Siddharth Verma Chief Technology Officer and President - Digital and Innovation 12 ASTEC INDUSTRIES, INC. Board of Directors William D. Gehl Chairman of Freightcar America, Chairman of IBD Southeast Wisconsin, Chairperson of the Board (2,3) James B. Baker Managing Partner of River Associates, LLC (1) Tracey H. Cook VP, Fluor Corporation and President, AMECO. Audit Committee Chair (1,2) William G. Dorey Former President & CEO, Granite Construction, Inc. (1) Mark Gliebe Former Chairman and CEO, Regal Beloit Corporation (1,2) Mary L. Howell Founder & CEO, Howell Strategy Group Nominating & Corporate Governance Committee Chair (2,3) Nalin Jain Group President, Digital Electronics Wabtec Corporation (1,3) Linda Knoll Advisor, EXOR, NV (2,3) Charles F. Potts Chairman, Heritage Construction Materials (3) William Bradley Southern CEO, Louisiana-Pacific Corp. Compensation Committee Chair (2) Glen E. Tellock Former President & CEO, Lakeside Foods (1,2) Jaco van der Merwe President & CEO, Astec Industries, Inc. (1) Audit Committee • (2) Compensation Committee • (3) Nominating & Corporate Governance Committee Transfer Agent Computershare 250 Royall Street, Canton, MA 02021 800.617.6437 www.computershare.com/investor Stock Exchange NASDAQ, National Market—ASTE Investor Relations Stephen C. Anderson 423.553.5934 Corporate Office Astec Industries, Inc. 1725 Shepherd Road Chattanooga, TN 37421 Ph 423.899.5898 Fax 423.899.4456 www.astecindustries.com The Form 10-K, as filed with the Securities and Exchange Commission, may be obtained at no cost by any shareholder upon written request to Astec Industries, Inc., Attention: Investor Relations. 14 ASTEC INDUSTRIES, INC. 

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