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Astec Overstates Net Income, Restates Years Of Financials
Manufacturer corrects misstatements dating back to 2018.
March 21, 2023
Astec Industries (ASTE), a road building equipment manufacturer, understated its cost of sales between 2018-2021, thus overstating sales and net income. The error pertained to work-in-process inventory, which apparently wasn’t caught and compounded during the period. Astec corrected the misstatements in its latest annual report, which include:
—Overstated sales by $1.7 million, or 0.15% in 2021
—Overstated net income by $2 million, or 12.57% in 2021
—Overstated net income by $0.9 million, or 1.95% in 2020
Astec says the misstatements are immaterial and will not correct inaccurate previously filed financial statements.
Revisions to the company’s GAAP results aren’t the only metrics undergoing revisions. In 2022, the company changed how it calculates Adjusted EBITDA, shifting assets between reportable segments, and changing how it allocates expenses between segments.
Separately, Astec fired its CEO January 6, 2023, paying him $4.4 million the company characterized as restructuring costs. Astec warned it will incur additional separation related costs in the first quarter of 2023 but did not quantify.
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