Vcall Transcript of Astec Industries, Inc. (ASTE) · 2015-12-09 · 1 Vcall 601 Moorefield Park Dr. Richmond, VA 23236 Phone: 888-301-5399 Fax: 804-327-7554 [email protected] Transcript

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Vcall 601 Moorefield Park Dr. Richmond, VA 23236 Phone: 888-301-5399 Fax: 804-327-7554 [email protected] www.vcall.com www.investorcalendar.com

Transcript of

Astec Industries, Inc. (ASTE) First Quarter 2012 Earnings Conference Call

April 24, 2012

Participants J. Don Brock, Chairman and Chief Executive Officer David C. Silvious, Vice President and Chief Financial Officer Stephen C. Anderson, Vice President of Administration and Director of Investor Relations

Presentation

Operator Greetings and welcome to the Astec Industries’ First Quarter 2012 Earnings Conference Call. At this time, all participants are on a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Mr. Steve Anderson. Thank you, Mr. Anderson, you may begin. Stephen C. Anderson – Astec Industries, Inc. – Vice President of Administration and Director of Investor Relations Thank you, Lewis. Good morning and welcome to the Astec Industries’ conference call for the first quarter ended March 31, 2012. As Lewis mentioned, my name is Steve Anderson and I’m Vice President of Administration and Director of Investor Relations for the company. Also on today’s call are Dr. J. Don Brock, our Chairman and Chief Executive Officer; and David Silvious, our Chief Financial Officer. In just a moment, I will turn the call over to David to summarize our financial results and then to Don to review our business activity during the first quarter. Before we begin, I’ll remind you that our discussion this morning may contain forward-looking statements that relate to the future performance of the company and these statements are intended to qualify for the Safe Harbor liability established by the Private Securities Litigation Reform Act. Any such statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions. At this point, I’ll turn things over to David to summarize the financial results for the first quarter of 2012. David?

Transcript: Astec Industries, Inc. (ASTE)

First Quarter 2012 Earnings Conference Call April 24, 2012

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David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer All right. Thanks, Steve, and good morning to everyone. We appreciate you being with us this morning. I’ll run through the financials quickly. Net sales for the quarter were $266.6 million in 2012 versus $230.2 million in 2011. That’s a 16% increase or $36.4 million increase. International sales were $105.2 million of that in 2012 compared to $82.7 million in 2011. That’s a 27% increase, $22.5 million increase, and that represented 40% of the Q1 2012 sales. In 2011, international sales were 36% of Q1 2011 sales. The increase in the international sales for Q1 2012 versus Q1 of 2011 occurred primarily in Australia, in Brazil, in the post Soviet states and Russia, in Asia and the Middle East, and in Mexico. Domestic sales for the first quarter of 2012 were $161.4 million. That compares to $147.5 million in the first quarter of 2011 or a 9% increase or $13.9 million increase. Domestic sales then represented 60% of the Q1 2012 sales versus 64% in Q1 of 2011. Part sales for the first quarter of 2012 were $76 million and that compares to $57.3 million for the first quarter of 2011. That’s a 33% increase in part sales, or $18.7 million. Part sales were 29% of the quarterly sales in 2012 compared to 25% in 2011. The segment revenues are attached to your press release. I won’t read those to you here. They’re given to you in detail there for the first quarter of 2011 and 2012. The gross profit for the quarter was $60.6 million compared to the prior year of $54.7 million. That’s an increase of $5.9 million or an 11% increase in dollars. The gross profit percentage on a consolidated basis decreased 110 basis points for the quarter from 23.8% last year to 22.7% this year. Gross margin by segment is also attached to your press release and we won’t cover those in my comments. SGA&E for the quarter was $41.9 million compared to $39.5 million in Q1 of 2011. It was 15.7% of sales this year versus 17.2% of sales last year. That’s an increase of $2.4 million but a decrease of 150 basis points when it comes to as a percent of sales. The primary area where there were decreases was ConExpo. If you remember then in 2011, we had ConExpo, which is every three years. We had increases this year in health insurance and some payroll and related travel expenses in SGA&E. Operating income increased from $15.2 million in Q1 of 2011 to $18.8 million in Q1 of 2012. That’s an increase of $3.6 million or 24% increase in the operating income. Income by segments is also included in the press release. The tax rate was 37.3% on an effective basis for the quarter. That compares to 34.8% in the prior year and that increase is primarily due to the R&D tax credit being in effect for 2011 but not in effect for 2012 yet. We are hopeful that Congress will



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pass that R&D tax credit during 2012 and it will be retroactively effective back to January 1, 2012 but being that they have not passed that R&D tax credit yet, we certainly cannot consider that when calculating the effective rate on our earnings so the rate is 37.3%. Net income attributable to controlling interest is $12.2 million in the first quarter of 2012 compared to $10.1 million in the first quarter of 2011. That is a 21% increase in earnings there or $10.1 million. Earnings per share per fully diluted share for the quarter is $0.53. That compares to $0.44 per diluted share in Q1 of 2011. That’s a 20% increase in our earnings for the quarter. The backlog at March 31 2012 was $285.6 million compared to $264.7 million at the same time last year. That’s a $20.9 million increase or 8% increase in the total backlog and that backlog for 2011 was adjusted to reflect those acquisitions that occurred, primarily GEFCO that occurred late in 2011. The international backlog at March 31 2012 was $122.8 million compared to $139.9 million last year for a decrease of $17.1 million or a 12% decrease in the international backlog. However, the domestic backlog increased from $124.8 million at March 31, 2011 to $162.8 million at March 31, 2012. That’s a $38 million increase or a 30% increase in the domestic backlog. The backlog by segment is also attached to your press release. We look at the balance sheet. Our balance sheet remains very strong. Receivables are $113.6 million this year, March 31, compared to $100.2 million last year. That’s a $13.4 million increase and the days outstanding actually reduced by one day from 39.1 last year to 38.1 this year. Our inventory is up to $313.4 million this year versus $272.7 million last year at March 31. That’s a $40.7 million increase. That increase is partially due to the acquisition of GEFCO, which makes it about $22.6 million of that inventory increase. Inventories turning in 2012 at 2.6 turns versus 2.5 turns last year so the turns have slightly improved. We owe nothing on our $100 million credit facility. We have $41.6 million in cash and cash equivalents on the balance sheet right now. Letters of credit outstanding are $13.5 million against that credit facility so our borrowing availability is $86.5 million under that facility. We did renew that facility. Many of you may know that it was going to expire in April and we did renew that $100 million credit facility with Wells Fargo and you may have seen the 8-K file on that. It is a five-year deal on substantially the same terms as our previous five-year credit agreement with Wells Fargo. Capital expenditures for the quarter were $5.4 million. We’re budgeted to spend about $37.5 million for 2012. Depreciation for the first quarter was $5.4 million and we have budgeted about $22.5 million depreciation for the year 2012. That concludes my prepared remarks on the financial details and certainly will be available to answer any questions you may have later in the call.



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Stephen C. Anderson – Astec Industries, Inc. – Vice President of Administration and Director of Investor Relations Okay. Thank you, David. Don Brock is now going to provide some comments regarding our first quarter of this year’s operations. Don? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Thank you, Steve. As David had said, our revenues were up from $267 million versus $230 last year or an increase of 16%. Our pretax profit was $19.5 million versus $15.5 million or a 26% increase while after tax was $12.2 million versus $10 million or a 21% increase. The difference, as David said was due to the difference in the tax rate of 34.8% versus 37.3% due to the expiration of the R&D tax credit. This affected our earnings per share of about $0.02. Our EPS was $0.53 versus $0.44 for an increase of 20.8. We continue to struggle with our equipment margins during the quarter. In the mobile equipment, the change from Tier 3 to Tier 4 required major redesigns in each equipment model that we build. We not only experienced higher engine costs in doing this, but saw man hours increased due to the first of these new models being built. We were also hurt by our foreign competitors who are also able to bring in Tier 3 engines due to models being built before they were able to stock pile engines in advance. US manufacturers were not allowed to stock pile at the end of 2010. This has led us to a very tough pricing competition particularly in the paver side of the market. We’ve also experienced higher costs on our other new and first up products that we’re building. We have a number of these due to our aggressive product development program over the last two years. However, these products will be what will grow our company in the future and it seems to be a price that we have to pay on all new products. Although our margins improved 150 basis points from the low of Q4 of last year, we remained 110 basis points below quarter 1 of 2011. This difference equates to about $0.08 a share. On the real positive side, we saw our part sales continue to grow. As David mentioned, we have a 33% increase from $57 million to $76 million. Basically, most of our gross profit was totally due to growth in parts. We’re pleased to see the efforts that we’ve put forth in the last couple of years of growing our parts business, increasing our parts sales begin to pay off. However, it should be pointed out with a weak market, you expect your parts, particularly here in the United States, we see people buying more parts, doing repairs in lieu of buying new equipment. We expect to see our margins gradually recover during the year, as we’ve mentioned in the past, but we think this will be a slow recovery as we gradually build more of the machines and work our man hours and our costs down. Looking forward to the second quarter and the rest of the year, I guess first, if we look at the equipment for the infrastructure, we remain without a highway bill with a ninth extension in place. Volume for our customers remains weak. Highway lettings are off 14% year-over-year. We do not believe that we’ll see a highway bill personally. I don’t believe that we’ll see it before 2013 due to the election. With this backdrop, we



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expect domestic sales to remain weak and very competitive. International sales continue to grow but not as rapid a pace as we’ve seen in the last two years. However, with all of these negatives, let’s say that we believe that we will be able to back fill this weakness with equipment from the energy and mining sector. We continue to grow our drill businesses. We are building water heaters that are used for fracking, pump trailers for well service and fracking, larger chippers and flails that are used for producing wood chips. Our new concrete plant is beginning to sell. Surface miners and wood pellet plants are also being developed and we are beginning to receive our first orders. This wide variety of products creates many opportunities for us but it also creates many challenges. As the US economy improves and the volume of our core products return to normal, our growth will be driven by these present low margin products that we’re birthing today. At the end of the quarter, our backlog was $285 million versus $264 million for last year, up 8%. Domestically, we believe that the uncertainty of no highway bill, the delay in the keystone pipeline, the environmental resistance to fracking will prevail throughout this year keeping our customers cautious and somewhat paralyzed, buying only what they have to buy. The expiration of 100% depreciation credit has also slowed the buying of our strong private customers who generally buy on a more consistent basis regardless of the economy. However, with all of this said, we continue to believe that we will continue to grow our business at approximately 15% per year. Typically, at this rate of growth, you will see improvements in the incremental margins. However, based on the number of new products, the competitiveness of the market, we think our profits will grow along with our revenues and basically, we will not see incremental improvements as we have in the past. Our balance sheet remains strong and we continue to look at bolt-on acquisitions that will be accretive and synergistic. I’ll be glad to answer any questions that you have at this point. Operator We will now be conducting a question-and-answer session. If you would like to ask a question, please press *1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press *2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the * keys. One moment please while we poll for questions. Our first question comes from Jack Kasprzak of BB&T. Please proceed with your questions. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Jack.



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Jack Kasprzak – BB&T Capital Markets Good morning, Don. Good morning, everyone. First question is with regard to Q1 asphalt sales. Asphalt group sales were down and mobile sales are down in the quarter so is that just due to the lack of a highway bill and the uncertainty you underscored, Don, or is there anything else going on? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer No, I think that’s pretty well it. Jack, there are a lot of the states that just stopped the lettings because they fooled around until the last week of March before they extended the bill and as a result, a lot of lettings were just stopped and continued what we are selling domestically on asphalt plants, they all have wheels on them, the people generally are low on volume of work and if there are large jobs, they’re more prone to move and so we’re selling a number of portable plants. We have an order for seven plants from the US Army. The first one we built was not profitable; the others will gradually be, so another one of the new products. They have a few special things that they require on it that required re-engineering. In the paver side of it, we have been hurt by the fact that one of our competitors stock piled a large number of Tier 3 engines and he’s now bringing them into the States and very aggressive on pricing and that’s certainly for us to meet that price, again, hurt our margins on top of the fact that we’re having to put the Tier 4 in ours and our margins have gone down on that. I’d say we have seen that improved but I don’t see a lot of revenue pick up in both of these areas other than from the international until we get some stability or some certainty about what kind of highway bill we’re going to have. Jack Kasprzak – BB&T Capital Markets Are you feeling less optimistic about the domestic sales opportunities you have right now than you were three or six months ago? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I guess it’s pretty frustrating to answer your question on what they might do with the highway bill. On the positive side, I do see commercial work slowly coming back, not greatly. The homebuilding as you know was up slightly, a long way from where it needs to be, but we’re seeing a gradual return to the commercial work, which helps our customers. But the highway work remains slow and I’ll have to say, I’m still negative of getting anything done before – we have to have more revenues and Republicans don’t want to do anything to raise it and the Democrats’ definition of infrastructure is a lot different from roads and bridges. So, it’s not a very positive thing. There are a number of people in the industry that have the opinion that maybe with these conferences that they will convene, we might end up with a three-year highway bill. And even though it would be probably a flat bill, they will still have to come up with some funding. That wouldn’t be all bad. At least it lets a little bit of certainty into the market but right now, people are just somewhat paralyzed by the unknown of what’s going to happen related to it. Jack Kasprzak – BB&T Capital Markets And where do you think guys are in the transition from the Tier 3 to Tier 4 engines in terms of your retooling of your equipment?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Well, our biggest area was at Roadtec, and I’d say they are 80% through with all that and we have all of the new models designed there. There are some of our other businesses, Peterson, the chipper business, is just getting started in it. They have larger engines and they have more time on that. But I would say on the whole of our mobile equipment, we’re probably 70% there. Jack Kasprzak – BB&T Capital Markets Okay. That does it for me. Thank you very much. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Thank you. Operator Our next question comes from Robert McCarthy of Robert W. Baird. Please proceed with your questions. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Rob. Robert McCarthy – Robert W. Baird & Company, Inc. Good morning, Don. That’s Baird, of course. As you would expect from me, I’ve got some number oriented questions. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Okay. Robert McCarthy – Robert W. Baird & Company, Inc. First, I want to make sure that I understand the backlog adjustment that we’re making. We’ve added about 20 million to last year’s backlog for comparability purposes. That’s GEFCO I gather. David Silvious – Astec Industries, Inc. – Chief Financial Officer That’s correct. Robert McCarthy – Robert W. Baird Okay. And then the thing that sorts of surprises me in like this question of ignorance. It looks like about two-thirds or three-quarters of that backlog was international. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, GEFCO, before we bought them last year, had about $19 million backlog at the end of first quarter and $10 million of it was a large order to Egypt that our core of engineers paid for. So it was an unusual size order for that company and that doesn’t exist this year, so that was kind of an anomaly. That order shipped before we bought the company. Robert McCarthy – Robert W. Baird Yeah. So their business today, is it mostly domestic which was I had assumed?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer No, I would say, again, it’s about half international. The good part of it, they had a very good first quarter and I might say, I’m very pleased with the people there and with that acquisition. They’re very excited about us upgrading their plant and putting in more equipment but one of the things, they had been very cautious and held back for a number of years and we have doubled the number of people they have in the parts area. So their parts business is about 42% to 43% of their business. They have such a string of products out in the field. And we’re growing that business. Their new equipment, we’re redesigning some of it and growing it. It was exciting; I was out there last week and we started their focus groups about three months ago and I’ve never seen a group so excited about how much savings that they can take out of what they’re doing. So we’re very pleased with that. I think it’s going to be a great company for us. Robert McCarthy – Robert W. Baird Can you tell us what GEFCO contributed in revenue in the quarter? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer It was around 14, 15 million range. Robert McCarthy – Robert W. Baird Okay. And last question, more broadly, looking at the international and domestic order comparisons, like driving that from backlog, it looks like your international order activity was roughly flat year on year, Don. Is that some surprise to you? Is there an element in last year’s number that made it a more difficult comp or can you just talk about what you’re seeing here? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer It’s a mix, Rob, between the companies. Canada and Australia continues to be good for asphalt. The thing that’s been a little surprising as we’ve done our quarterly reviews is that the domestic business in the aggregate side of the business for the first time in about three years has begun to pick up a little bit which was a little bit surprising to me while on the domestic side of the asphalt business it’s a struggle. But the mix between international and domestic has switched over and it’s about half and half now in the aggregate side and tells me there was about 70% international last year. So we are seeing an improvement. I might add, a part of that on our track-mounted machines, there are a lot of those going out to dealers who are renting them. The rental business is just a part of the uncertainty and people are doing a lot more renting than they are buying and the machinery that we have in that area has been doing better because of that. Robert McCarthy – Robert W. Baird Okay. Thank you. I’ll get back in queue. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Okay.



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Operator Our next question comes from Rich Wesolowski of Sidoti & Company. Please proceed with your questions. Richard Wesolowski – Sidoti & Company LLC Thank you. Good morning. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Rich. Richard Wesolowski – Sidoti & Company LLC Don, over the last couple of calls, you voiced optimism that the company can reap operating leverage under 15% sales growth both in the gross margin and in the SG&A and today, it seems the reverse and you’re calling for earnings expanding in line with sales. Could you discuss what changed that? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer It’s mainly in the mobile side due to the redesign of the equipment for the Tier 4 and the cost of the engines in the Tier 4 and the new products. What we are selling to backfill are brand new products and, without any question, the margins on those have been disappointingly low. It’s like one of our presidents said, you know, I’m embarrassed that we lost money on this first sale but he said we’re going to up the price and we’re going to cut our cost and we’ll get the margins back in shape and we are going through that process. Our margins on our equipment were down about 2% year over year but what saved us was the parts business… Richard Wesolowski – Sidoti & Company LLC Right. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer …and the growth of that. But we’re disappointed that the margins that we’re not getting the incremental benefit. I believe we will. It may take another quarter or two to do that. I don’t know whether anybody else can, but we can’t design a brand new product or a new model and not have to do some rework, not to have to have some warranty, not to have excess man hours on it. It seems to happen and I know from over the years, we’ve seen our man hour cost go to 40% of what the first unit was so this is not unusual what we’re seeing here today. Richard Wesolowski – Sidoti & Company LLC Am I correct to assuming that the bulk of the 1Q sales were for products that did not have the late 2011 price increase but that the great majority of the sales in 2Q and beyond would benefit from the price increase? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, that’s correct.



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Richard Wesolowski – Sidoti & Company LLC Okay. Then lastly, even without GEFCO’s contribution, your parts business was about $70 million and you’ve never even cracked $60 million in the past. What was the big change from 1Q versus 2011? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I think there are two things. One, we are being very aggressive about selling our parts. As I’ve mentioned in other calls, we continue to add PSRs or parts service representatives out in the field and the people who buy the parts are not the people that buy the new equipment. I’m a little embarrassed that we hadn’t recognized that in the past more. We’ve been more order takers on parts and now, we’re aggressively trying to sell them. We’re reverse engineering some of our competitors’ parts and some of our competitors that have gone out of business. But I think the second thing that’s probably equally as important is that in the uncertainty of the economy, there are two major things out and people are at least on asphalt plants, they’re buying used asphalt plants versus new if they can find them and number two, particularly in the mobile stuff, they will rent before they buy. It’s really just a process in my opinion, Rich, in delaying a decision. It’s not that they don’t need it but with the uncertainty and not being able to have much visibility out, they will pay a higher price to rent. Richard Wesolowski – Sidoti & Company LLC Great. I appreciate it. Best of luck. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Oh, thank you. Operator Our next question comes from Nick Coppola of Thompson Research Group. Please proceed with your questions. Nicholas Coppola – Thompson Research Group, LLC Hi. Good morning. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Nick. David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Good morning. Nicholas Coppola – Thompson Research Group, LLC If you were to look across segments and divide it into infrastructure, mining, and energy, what was the performance like in each of those buckets? Any quantitative or qualitative comments would be appreciated. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes. If I understand your question I guess if we look at the asphalt side of the business. It is still very strong infrastructure; probably 75% of what they do is infrastructure, maybe 80%. The one company there that has done very well in



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diversifying more in energy is Heatec, the Heatec operation. I know where half of their business is going to heaters for processing natural gas, for fracking for hot water. So they’ve done a very good job. Astec still sells some soil remediation plants. Astec has invested a lot of money in this wood pellet plant and it could be a substantial part of its business in the future. We have two plants that, as I’ve said earlier, we think we’ll sell this year the larger of the two. I got an email from our customer yesterday that said they hope to sign the contract on the off take agreement by the end of this month or by the end of May, I should say, and would be proceeding with the plan. So we’ve got a firm verbal, so to speak, on about a $40 million pellet plant. That will be a part of that business. In the aggregate side of it, the predominant amount of their business is going to infrastructure and mining with probably 30% of it now going to mining. In the underground side, it’s predominantly going to energy or drilling. Our drill rigs are going quite well and the directional drills are pretty well, a large part of it being sold internationally but, again, that’s for pipelines and things like that. The mobile side of the business is predominantly infrastructure and really has not diversified a lot out of that. Nicholas Coppola – Thompson Research Group, LLC Okay. All right. Well, that’s helpful. Then I guess talking about the wood pellet plant, I think the last time that we spoke, I guess there were still some technological or there was some functionality issues being ironed out. Where are you on that? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We have continued to struggle with the pellet press. The first plant we sold will be using ring dyes, the more conventional type units that we will purchase. That amounts to about 10% of the cost of the total plant. The drying and burning up of the VOCs and the torifying of the wood has worked very successful through the tube-type dryer we’ve tested and all our test did come out very well and we’re pretty excited we’ve got a great product there. Torification is still kind of a new process that will be a while probably before the utilities buy into it. The economics of it at this point don’t work as well as just the regular wood pellets and many of the European utilities are set up just to handle the wood pellets but we think we’re ahead of the game on that and we think we have the ability. The test we run, most pellet plants that run southern pine without an afterburner or RTO on the plant, you can’t run over about 120,000 tons a year. With the system we have, we can run up to over 600,000 and 700,000 tons a year without an afterburner so we have some real advantages and we’re pretty excited that we’re getting close to having all the bugs out of it. Nicholas Coppola – Thompson Research Group, LLC Okay. That’s great. Thanks. Then one last question. I guess of the 15.8% increase in revenue, how much of that was acquired revenue?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We’re making a comparison of year-over-year basically. Their backlog and everything, it has it included. Of the revenue, it’s about $15 million but as a comparison of year over year, we had GEFCO’s last years in there… David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer No. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer …but we had it in our backlogs… David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer In the backlog but not in the revenue, so it’s about $15 million. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer About $15 million in the revenues but it is in their backlog in comparison. Nicholas Coppola – Thompson Research Group, LLC Got you. Okay. Thank you. Operator Our next question comes from Jason Ursaner of CJS Securities. Please proceed with your questions. Jason Ursaner – CJS Securities Good morning. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Jason. Jason Ursaner – CJS Securities A quick followup on Jack’s original question about the contract with the US Army, what was the revenue content that’s actually shipped through the quarter on that first one and what do you have in backlog now from that? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Basically, the total contract is $89 million to $90 million. We have only put in backlog $21 million – about $21 million of it. We have firm orders for seven plants. We did not actually ship the plant. The first plant will be shipping in the second quarter. We had a lot of expenses related to it. Jason Ursaner – CJS Securities Okay. You won’t have ConExpo this year and I know last year, you had a very strong showing there at the end of March. In terms of the top line impact of that, I think most of the shipments went out in Q2 but were the orders already in backlog by the time Q1 ended last year?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer No, I think we sold everything that was out at ConExpo but I would say probably most of the benefit of that stretches out over nine months and you ask a question that’s hard for us to analyze. I struggled with whether we get the benefit of that as our salespeople think we do but we had just finished the show last week at Intermat in France and, again, you don’t spend there what you do at ConExpo but we were successful in picking up some orders there. But I think the answer to your question, most of that showed up in the second quarter if it shipped out of what was at the show and then other orders would have been in the second or third quarter of last year. Jason Ursaner – CJS Securities But those wouldn’t have been in backlog. It sort of was an immediate order from the show? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Some of those were in backlog. Some of those I would say half of what went to the show, we already had sold, Jason. Jason Ursaner – CJS Securities Okay. In terms of hitting the annual revenue growth target, I see the acquisition growth is in hand but listening to your commentary and I guess the backlog figures, I’m a little confused where the volume growth is going to come from. You’re still showing growth but the quarterly comparisons are getting a little tougher from here on out. So just if you could I guess give any more color on that. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Well, I guess we see the 15% growth as still being very achievable. It will probably, in the second half, switch more to being international. I guess domestically on infrastructure, I think you’ll see a continued slight improvement in residential and commercial type building just a slow improvement. I think highway work is going to be flat and as I said earlier, it’s already down like 14%. We’re getting a lot of our growth or will get more of it out of the energy business. We have a number of orders for pump trailers for oil service and fracking. We have about 30 some orders for hot water heaters for fracking. We have a year’s backlog for thermal oil heaters going on gas platforms. With the pellet plants, we hope will start to fill in the fourth quarter. So, we have a variety of diversified products that should continue to back fill, and that’s what we’re banking on. Jason Ursaner – CJS Securities Okay. Great. I appreciate the context. Operator Our next question comes from the line of Ted Grace of Susquehanna. Please proceed with your questions. Ted Grace – Susquehanna Financial Group Hi, guys. How are you doing?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer All right, Ted. David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Good. Ted Grace – Susquehanna Financial Group The first thing I was hoping to come at is the orders by end market and so if you could just dissect, you know, when we look at the year-over-year change in your quarters, it’s not backlog but orders, how much of that came from infrastructure versus energy versus mining? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer My best estimate of it, Ted, would be probably 20% mining, 15% to 20% in energy, and about 60% to 65% infrastructure. Ted Grace – Susquehanna Financial Group Okay. But that’s orders, not revenue. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer That’s correct. Ted Grace – Susquehanna Financial Group Okay. Just for clarification sake, I know you gave kind of an apples-to-apples comparison on the backlog, could you give us the orders from the first quarter adjusting for GEFCO and whatever other adjustments you think are appropriate? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I’m not sure I understand what your question is there. I mean GEFCO is about $15 million in revenues and their backlog is comparable to that. They have about a month – about a quarter’s backlog. The way the accounting is David and I knock heads sometimes over this but he wins. He’s bigger than I am. In presenting our backlog, we have to compare what backlog GEFCO had last year and they had $19 million last year versus about, I believe, its $15 million this year in backlogs. They had that one large order. Even though we didn’t own them and even though we did an asset purchase, we have to make that comparison. So it was an asset purchase for the revenues, we add their revenues without a comparison to last year. Ted Grace – Susquehanna Financial Group Okay. So maybe said otherwise, if I just look at your orders on an apples-to-apples basis dollar wise, they’re up what? $30 million year over year? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer That’s pretty close, yes. Ted Grace – Susquehanna Financial Group What you’re saying is two-thirds of that came from infrastructure despite the headwinds and only 20% was mining, only 20% was energy?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer That’s right. Ted Grace – Susquehanna Financial Group Okay. That was what I was trying to get at. In terms of the April lettings on the contract on the highway side, any sense for how that’s going? Have you seen an uptick or an improvement given that you did get a CR? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I know in Georgia, for example, they canceled all the lettings in March until June but they reinstated them and they had a pretty good letting in April and in May, likewise in Mississippi, likewise in most states. What all of this has done though is it’s tended to delay the start of the construction season for the contractors. Due to good weather, they used up their backlog and as a result, they’re getting somewhat of a late start and then you still continue with uncertainty what’s going to go on after June. In one respect, it’s like we’ve had for the last 2-1/2 years the type of work they can let is primarily asphalt jobs. The bigger jobs that require a year or so of design, you’re not going to see any of that done until you get a multiple year highway bill. There is an opportunity in this conference committee that we might see maybe a compromise of a three-year bill. There’s been some discussion of that at about flat funding as I said earlier and I would think that’s probably got a 50/50 chance of getting done. Ted Grace – Susquehanna Financial Group So if you look at the… J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer With that, it would probably change the back end of our year a little bit. Ted Grace – Susquehanna Financial Group Okay. But if you look at the highway lettings, they’re down five months before March so they’re down six months in a row and seven out of eight by an average of 25%. You think that can reverse itself in the, call it, the spring season? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer It will a little bit but it won’t make it up to 25%. Ted Grace – Susquehanna Financial Group Okay. The last thing I was just hoping is to get a little more color on Brazil in the quarter, kind of where the strength was, and how you’re thinking about Brazil for the rest of the year? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer David, you’ve been down there. We’ve been slowed by just the legalities of it. The plant is beginning to be started.



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David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer There’s a lot of bureaucracy that you have to wade through in Brazil to do just about anything but we are making progress. We have blueprints and such and we’re getting ready to break ground and we still project that by the end of the year of 2012, probably first quarter of 2013, we’ll begin production in Brazil. Again, there’s a lot to wade through so we have a lot of the administration and back office operation underway so it’s looking pretty good. Ted Grace – Susquehanna Financial Group I guess more specifically I was trying to get a sense for sales, not operations. So when David went through international sales results, the second listed region and so I didn’t know if we should infer that it was force [PH] ranked by Australia then Brazil then CIS or – I was trying to get a little bit of flavor for how your business did in the first quarter this year. David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Those were sales out of the US into Brazil and we believe that certainly Brazil will move up the ladder once we start selling in Brazil. I mean there are a lot of incentives for people to buy from Brazilian manufacturers. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer The main reason we’re going to Brazil is we have to do this and we’ve taken products in there that’s extremely high. Ted Grace – Susquehanna Financial Group Yes. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer And it’s not to build there and export out of there. It’s to build there and sell in Brazil to be competitive with our competitors that are there. Ted Grace – Susquehanna Financial Group Got it. Okay. Good luck, guys. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Thank you. Operator Our next question comes from the line of Walt Liptak of Barrington Research. Please proceed with your questions. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Hi, Walt. Walter Liptak – Barrington Research Associates Hi. Thanks. Good morning, guys. I wanted to ask another one on this Tier 3, Tier 4 transition. You mentioned foreign competitors that are allowed to bring in Tier 3



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engines, are those transition engines and when does that come to an end because that might alleviate some of the margin pressure? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Walt, we don’t know how many they stockpiled but we were unable legally to stockpile engines, Tier 3s. We do have a flex program where depending on the amount of number of engines that you build, you get a percentage of that as a transition period. The foreign competitors were able to stockpile as many as they wanted to and in addition to that, they have the flex program available after that. So it’s kind of a typical bureaucratic – it really puts the American manufacturer at a major disadvantage and kind of frustrating for us but I think they’ll blow through that this year. Walter Liptak – Barrington Research Associates Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer The other thing that will help us too, and we’re already seeing it, our margins are coming back up on the new models as we get the jigs and fixtures and the things for those. So I think we will probably be ahead of them and also in the warranty problems that you have with new machines, we’ll certainly be ahead of them on that. But right now, they have probably a nine-month advantage on us. Walter Liptak – Barrington Research Associates Okay. The margin pressure that you saw in asphalt, was that because of that sole army related plant? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes. The first one or two of those are not going to have much in them. The biggest thing that we’re seeing on that is just a lack of good volume. We’re selling a lot of components. We’re selling a lot of parts in the asphalt side but – in our quarterly review with the Astec subsidiary, our sales manager said that they had been in the last 12 months, 14 of what I would call our double barrels, our relocatable type plants – 14 of those out on the market. About six of them have been sold and the problem with that is that it just takes away new business. We sell parts to the people that buy the plants but it takes away the new side of the business. So what they are buying, they’re either fixing up what they have or buying a portable because they’re moving out of the area they normally work… Walter Liptak – Barrington Research Associates Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer …or they have the ability to go look for a used one. Walter Liptak – Barrington Research Associates Okay. All right. Let me just switch gears but I guess still talking about margins, the price cost. A lot of commodity costs have been moderating, maybe some contracting, wouldn’t that help your second quarter and your back half of the year if some of your material prices come in?



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, that would be a real help. We’ve seen steel moderate a little bit but it’s still probably 25% above where it was a couple of years ago. It went up maybe 40% and then back down but it hadn’t moderated like it did in 2009. It’s still probably 20% or better above what it was at the beginning of last year. Walter Liptak – Barrington Research Associates Okay. But at this point, you’re not seeing the relief come through from raw materials? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Not a lot. Walter Liptak – Barrington Research Associates Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We’ve seen the rate of increase moderating but not necessarily in falling back on them. Walter Liptak – Barrington Research Associates Okay. Then the last one I want to ask is the businesses that continued to do well, you know, the backlogs and Underground group and aggregate mining, and you talked about how the commodities area is still going to be good but we’ve seen commodity prices come in. At what point should be worry a little bit about too much capacity being out there for commodities process and just the prices are coming down or you’re just not seeing a robust market? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We’re not seeing the market as being really robust at this point. Walter Liptak – Barrington Research Associates Okay. But your backlogs continue to grow? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes. I guess our expectations and if I sound disappointed – my disappointment with the growth in revenues I think will have that. My disappointment is that we didn’t do better on our margins. Walter Liptak – Barrington Research Associates Profit. Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes. That’s mine, Walt. Maybe my expectation was a little too high but that’s been disappointing. I think it’s an opportunity there for us to improve and I think we will do that. Walter Liptak – Barrington Research Associates Okay. Okay. Thanks very much.



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Thank you. Operator Our next question comes from the line of Todd Vencil of Sterne Agee. Please proceed with your questions. Todd Vencil – Sterne Agee Thanks a lot. Good morning, guys. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning. David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Good morning. Todd Vencil – Sterne Agee Most of my questions have been knocked out but I’d like to drill down on a couple of things. One is, Don, when you talked about margins sort of recovering slowly and you’re not really looking for incremental improvements from volumes but you are looking for, I guess, a recovery from some of the things that hit you during the first quarter. So are we thinking about kind of recovery up to the 24% gross margin level that you saw in 2007 and 2008? Is that kind of the level you’re thinking about? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer That’s where I’d like to see us get to but it will be probably 12 months before we get back to that. Todd Vencil – Sterne Agee Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I think we’ll just see a gradual improvement. Todd Vencil – Sterne Agee Okay. Then you had mentioned the domestic – that you were not looking for a lot of domestic growth certainly on the asphalt and mobile side given what’s going on here with the highway bill or lack thereof. For those two businesses, asphalt and mobile asphalt paving, what is the domestic and international split? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer They are generally in the 25% to 30% international. Todd Vencil – Sterne Agee Got it. Okay. That’s what I’ve got. Thanks a lot. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good. Thank you.



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Operator Our next question comes from Robert McCarthy of Robert W. Baird. Please proceed with your questions. Robert McCarthy – Robert W. Baird Thanks for taking another question. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Sure. Robert McCarthy – Robert W. Baird They are a couple. David, just to be perfectly clear on tax rate expectations that we should just use 37% for the balance of the year is the best guess right now? David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Best guess if Congress will pass the R&D tax credit? It should revert to our historical norm which is about 35%. Robert McCarthy – Robert W. Baird Right. David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer I hate to count on Congress to do much of anything these days. Robert McCarthy – Robert W. Baird Got it. The corporate expense, unallocated corporate expense, if you net out things like interest expense and taxes, et cetera, that number was down something like 50% year on year, that’s cut in half. Was there something unusual that contributed a positive offset in there? David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer No. There was nothing unusual. Robert McCarthy – Robert W. Baird So expense levels last year then were elevated? David C. Silvious – Astec Industries, Inc. – Vice President and Chief Financial Officer Yes. They were slightly elevated last year. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I think last year we had on like ConExpo in there, Rob. Robert McCarthy – Robert W. Baird Okay.



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We see our SG&A and engineering as being pretty well flat the rest of the year and as a percentage of total revenue, we see it getting more back in line where it should be. Robert McCarthy – Robert W. Baird Okay. The only other question I had was in the asphalt group, typically, Don, you’d see a measureable revenue decline in the second quarter from the first quarter. Is that what you also expect to see this year? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer No. Normally, the decline, Rob, would be in the third or fourth quarter. The second, generally, is equal to the first and always has been and sometimes – second has historically been our best quarter for the whole company and generally, Astec pretty well parallels that. Robert McCarthy – Robert W. Baird I don’t mean to be argumentative, Don, but the last three years, the second quarter asphalt revenues declined by at least $5 million from the prior quarter. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We don’t expect that this year. Robert McCarthy – Robert W. Baird Okay. That’s fair enough. Thank you, Don. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer All right. Operator Our next question comes from Rich Wesolowski of Sidoti & Company. Please proceed with your questions. Richard Wesolowski – Sidoti & Company LLC Hi. Thank you for circling back. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Sure. Richard Wesolowski – Sidoti & Company LLC Don, did you mention that you have a firm order for a $40 million pellet plant or group of plants? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I had a second word, a firm verbal. Richard Wesolowski – Sidoti & Company LLC Firm verbal, okay, that’s the one I missed. Okay. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer



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We had a number of meetings with this particular customer. They run two pellet plants in Georgia. They’re building a third large one. We have agreed on the numbers. We have agreed on everything except they are in Europe as we speak. Hopefully, we’ll get a contract signed for all other phases by the end of May. The one thing that has everything a little bit in limbo over there is the British government has a very aggressive program to give tax credits for burning biomass type fuels and replacing their coal-fired power plants with it and that law is supposed to take effect I think the first of May and they hope to have their contract in place. So our order is contingent on that contract getting in place. Richard Wesolowski – Sidoti & Company LLC Would you mind discussing the order outlook for that product line beyond this one prospect? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We have a very good prospect for this prototype plant that we have and frankly, we have prospects for probably three or four more of the big plants. We want to digest this big one and get it running and make sure that we have no other problems with it but I would say that we should start to see more substantial orders in 2013 for the plants, but we’re not ready to take multiple orders till we get this first one in and operating. Richard Wesolowski – Sidoti & Company LLC Right. Lastly, would you remind of the range of sizes of the pellet plants and the price tags that can go on this? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Typically, the lines that we’re building, we’re building a modular type plant and they will operate at 15 tons per hour guaranteed production and we hope they’ll do 20 tons an hour; it’s our expectation. That’s very dependent on how wet the wood is but the one in Georgia we’re talking about will have three lines, three identical lines. So it will do 45 to 60 tons an hour. The first line with the auxiliary equipment that goes with it is probably a $16 million plant and the other lines would be like $13 million a piece. Richard Wesolowski – Sidoti & Company LLC Great. I appreciate it. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, sir. Operator Our next question comes from Jason Ursaner of CJS Securities. Please proceed with your questions. Jason Ursaner – CJS Securities Thanks for taking the followup, Don.



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J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, sir. Jason Ursaner – CJS Securities Just what was the revenue on the small trencher business you sold to Toro and is that still going to be a drag on that segment earnings until you finish out sort of the contract manufacturing agreement or will you be able to list it as a discontinued op? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We will not list it as a discontinued op. The revenues were around $17 million to $18 million a year and that includes the parts related to it. There was about $4 million to $5 million of that being parts. We will continue to manufacture for them until the fourth quarter. It will be – I’d like to say it will be a breakeven but it may be a slight loss till the fourth quarter. It is just consuming man hours in that plant as we reload it with these other products. Jason Ursaner – CJS Securities Okay. So if I think about the GEFCO contribution though it’s probably, on a gross margin percentage, it’s a bit higher than that consolidated? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes. The Underground is still a drag on us there. We expect that to improve considerably as the fracking trailers go out and we have orders for those and we have started to get orders for the larger trenchers again, which is a pleasant surprise. Jason Ursaner – CJS Securities Okay. Great. I appreciate it. Thanks. Operator Our next question comes from the line of Larry DeMaria of William Blair. Please proceed with your questions. Larry DeMaria – William Blair Hi. Good morning. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Good morning, Larry. Larry DeMaria – William Blair Most of the things have obviously been answered but two quick questions. If you get the two orders for the wood pellet plants, when would you anticipate shipping? Would it be third or fourth quarter? That’s the first question. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer We would anticipate that the first line of the big plant going in the fourth quarter and the other two lines going in the first quarter of next year. The small prototype plant we have here probably in the fourth quarter. Larry DeMaria – William Blair



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Okay. Thank you. And then with regard to Intermat, any more color you could give us in terms of how orders shaped up and are they staying in western Europe or they mostly going to eastern Europe or elsewhere? Just the overall sense you guys got for Intermat would be helpful. Thanks. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer The prospect is kind of jump all over the place but we sold one plant and it’s going to France. The other prospects are kind of scattered all over but I would say more eastern Europe than anywhere else. I was quickly looking on my BlackBerry and my son sent me a list of all the different ones from the different areas and there are some of them in the Middle East, some Africa. Mainly, I would say eastern Europe. Larry DeMaria – William Blair Okay. That’s helpful. Do you guys feel better or worse about coming out of Intermat than you did going in I guess since what’s going on in the world? J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer I guess I’ve always been the negative one on Intermat. The times I’ve been it wasn’t much but he was saying leads out of France, Italy, Belgium, Kazakhstan, Czechoslovakia, Qatar, South Africa, Finland, Angola, Ireland, and Poland. Larry DeMaria – William Blair That covers a lot now. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, it covers a lot. Larry DeMaria – William Blair Okay. Thanks. J. Don Brock – Astec Industries, Inc. – Chairman and Chief Executive Officer Yes, sir. Operator There are no further questions at this time. I’d like to hand the floor back over to management for closing comments. Stephen C. Anderson – Astec Industries, Inc. – Vice President of Administration and Director of Investor Relations All right. Thank you, Lewis. We appreciate your participation on this first quarter conference call and thank you for your interest in Astec. As our news release indicates, today’s conference call has been recorded. A replay of the conference call will be available through May 8, 2012 and an archived webcast will be available for 90 days. A transcript will be available under the Investor Relations section of the Astec Industries website within the next seven days. Again, all of that information is contained in the news release today. This concludes our call. Thank you and have a good week. Operator



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This concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.

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Vcall Transcript of Astec Industries, Inc. (ASTE) · 2015-12-09 · 1 Vcall 601 Moorefield Park Dr. Richmond, VA 23236 Phone: 888-301-5399 Fax: 804-327-7554 [email protected] Transcript