FORT WORTH, Texas, April 4, 2014 /PRNewswire/ -- AZZ
incorporated (NYSE:AZZ), a global provider of electrical products
and services and a provider of galvanizing services, today
announced unaudited financial results for the three and
twelve-month periods ended February 28,
2014. Revenues for the fourth quarter were $181.0 million compared to $140.4 million for the same quarter last year, an
increase of 28.9 percent. Net income for the fourth quarter was
$10.2 million, or $0.40 per diluted share, compared to net income
of $13.2 million, or $0.52 per diluted share, in last year's fourth
fiscal quarter.
For the twelve-month period, the Company reported revenues of
$751.7 million compared to
$570.6 million for the comparable
period last year, an increase of 31.7 percent.
Net income for the twelve months was $59.6
million, or $2.32 per diluted
share, compared to $60.5 million, or
$2.37 per diluted share in the
comparable period of last year.
Our products backlog at the end of our fourth quarter was
$229.9 million. Backlog at the end of
the fourth quarter of fiscal year 2013 was $221.7 million. Incoming
orders for the fourth quarter were $199.1
million while shipments for the quarter totaled $181.0 million, resulting in a book to ship ratio
of 110 percent. Of the backlog of $229.9
million, 33.0 percent is to be delivered outside of the
U.S.
Revenues for the Electrical and Industrial Products and Services
Segment for the fourth quarter of fiscal 2014 were $103.5 million as compared to $61.9 million for the same quarter last year, an
increase of 67.1 percent. Operating income for
the segment increased 11.7 percent to $10.2
million compared to $9.2
million in the same period last year. Operating margins for
the fourth quarter were 10.0 percent for the quarter as compared to
14.8 percent in the prior year period. AZZ WSI LLC (together with
its subsidiaries, "WSI"), acquired March 29,
2013, contributed $53.8
million in revenues and $5.0
million in operating income for the quarter. Excluding WSI,
margins for the quarter would have been 10.6 percent. For fiscal
2014, revenues increased 78.2 percent to $416.1 million and operating income increased
34.0 percent to $45.9 million
compared to $233.6 million and
$34.2 million respectively, in the
prior year period. Operating margin for the 2014
fiscal year was 11.0 percent as compared to 14.7 percent in the
prior year period. Excluding WSI, FY2014 year to date margins would
have been 13.9 percent.
Revenues for the Company's Galvanizing Service Segment for the
fourth quarter were $77.5 million,
compared to the $78.5 million in the
same period last year, a decrease of 1.2
percent. Operating income was
$18.7 million as compared to
$17.2 million in the prior period, an
increase of 9 percent. Operating margins for the fourth quarter
were 24.1 percent, compared to 21.9 percent in the same period last
year. For fiscal 2014, revenues were
$335.6 million and operating income
increased 4.8 percent to $92.0
million compared to $337.0
million and $87.8 million
respectively, for the twelve months of the prior fiscal
year. Year to date operating margins were 27.4
percent compared to 26.1 percent for fiscal 2013.
Non-recurring expenses and income items recorded during the
fourth quarter are related to the fire at our Joliet facility as
well as expenses related to acquisitions. The rebuilt Joliet
facility began a soft start in mid-November, and this facility is
now in full production. While we expect to receive
additional insurance proceeds under our insurance policy in the
future related to the fire at our Joliet facility, the ultimate
amount that we collect has not yet been
determined. Any future recoveries under this
policy will be recognized in the period in which proceeds are
approved by our insurance carrier. A
reconciliation of these non-recurring items for the compared period
is included with the financial tables.
Based upon the evaluation of information currently available to
management, we continue to anticipate our fiscal year 2015 gross
revenues to be in the range of $850 to $900
million. Our earnings are anticipated to be in the range of
$2.40 and $2.80 per diluted share.
Tom Ferguson, president and chief
executive officer of AZZ Incorporated, commented, "As I noted on
the last call, our markets during the fourth quarter did remain
sluggish and our businesses were impacted by more weather delays
than expected. We were able to pull in some projects at WSI
and to catch up on some of the lost days within Galvanizing.
We are seeing some improvement in our quoting activity and look
forward to improvement in our core markets during FY2015. We
are focused on leveraging our sales teams across all Electrical
& Industrial businesses in North
America; aggressively expanding internationally; driving
operational excellence and growing our galvanizing business, both
organically and with targeted acquisitions. I am
appreciative of the hard work and dedication I have witnessed from
our employees and committed to providing them better systems and
tools to perform their roles even more effectively. We have a
good portfolio of products and technologies; a respected position
within our core markets; and customers that remain loyal due to our
service and quality. I am quite optimistic about FY2015 and
beyond and believe our guidance for FY2015 is achievable."
Additionally, the Company announced that the Board of Directors,
at its regularly scheduled quarterly meeting, declared a
$0.14 per share cash dividend on the
Company's common stock outstanding. The dividend
will be paid at the close of business on May
5, 2014, to shareholders of record on April 21, 2014.
AZZ incorporated will conduct a conference call to discuss
financial results for the fourth quarter of fiscal year 2014 at
11:00 A.M. ET on Friday, April 4, 2014.
Interested parties can access the conference call by dialing (877)
317-6789 or (412) 317-6789 (international). The call will be web
cast via the Internet at
http://www.azz.com/investor-relations. A
replay of the call will be available for three days at (877)
344-7529 or (412) 317-0088 (international), confirmation #10042828
or for 30 days at
http://www.azz.com/investor-relations.
AZZ incorporated is a global provider of specialty electrical
equipment and highly engineered services to the power generation,
transmission, distributions, and industrial markets as well as a
leading provider of hot dip galvanizing services to the North
American steel fabrication market.
Certain statements herein about our expectations
of future events or results constitute forward-looking statements
for purposes of the safe harbor provisions of The Private
Securities Litigation Reform Act of 1995. You can identify
forward-looking statements by terminology such as, "may," "should,"
"expects," "plans," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of these terms
or other comparable terminology. Such forward-looking statements
are based on currently available competitive, financial and
economic data and management's views and assumptions regarding
future events. Such forward-looking statements are inherently
uncertain, and investors must recognize that actual results may
differ from those expressed or implied in the forward-looking
statements. This release may contain forward-looking statements
that involve risks and uncertainties including, but not limited to,
changes in customer demand and response to products and services
offered by AZZ, including demand by the power generation markets,
electrical transmission and distribution markets, the industrial
markets, and the hot dip galvanizing markets; prices and raw
material cost, including zinc and natural gas which are used in the
hot dip galvanizing process; changes in the economic conditions of
the various markets that AZZ serves, foreign and domestic, customer
request delays of shipments, acquisition opportunities, currency
exchange rates, adequacy of financing, and availability of
experienced management employees to implement AZZ's growth
strategy. AZZ has provided additional information regarding risks
associated with the business in AZZ's Annual Report on Form 10-K
for the fiscal year ended February 28,
2013 and other filings with the SEC, available for viewing
on AZZ's website at www.azz.com and on the SEC's website at
www.sec.gov. You are urged to consider these
factors carefully in evaluating the forward-looking statements
herein and are cautioned not to place undue reliance on such
forward-looking statements, which are qualified in their
entirety by this cautionary statement. These statements
are based on information as of the date hereof and AZZ assumes
no obligation to update any forward-looking statements, whether as
a result of new information, future events, or
otherwise.
Contact:
|
Dana Perry, Senior
Vice President – Finance and CFO
|
|
AZZ incorporated
817-810-0095
|
|
Internet:
www.azz.com
|
|
|
|
Lytham Partners
602-889-9700
|
|
Joe Dorame or Robert
Blum
|
|
Internet:
www.lythampartners.com
|
AZZ
incorporated
|
Condensed Consolidated Statement of
Income
|
(in thousands except per share
amounts)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
February 28, 2014
|
|
February 28, 2013
|
|
February 28, 2014
|
|
February 28, 2013
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net sales
|
$181,011
|
|
$140,391
|
|
$751,723
|
|
$570,594
|
Costs and Expenses:
|
|
|
|
|
|
|
|
Cost of
Sales
|
135,287
|
|
102,399
|
|
546,018
|
|
406,422
|
Selling, General and
Administrative
|
24,613
|
|
17,170
|
|
105,591
|
|
66,189
|
Interest
Expense
|
4,663
|
|
3,270
|
|
18,407
|
|
13,073
|
Net (Gain) Loss on
Sales or Insurance
Settlement of Property, Plant
and
Equipment
|
217
|
|
(2,508)
|
|
(8,039)
|
|
(8,303)
|
Other
(Income)
|
(549)
|
|
(455)
|
|
(4,165)
|
|
(1,155)
|
|
$164,231
|
|
$119,876
|
|
$657,812
|
|
$476,225
|
|
|
|
|
|
|
|
|
Income before income taxes
|
$16,780
|
|
$20,515
|
|
$93,911
|
|
$94,369
|
Income Tax Expense
|
6,538
|
|
7,281
|
|
34,314
|
|
33,913
|
Net income
|
$10,242
|
|
$13,234
|
|
$59,597
|
|
$60,456
|
Net income per share
|
|
|
|
|
|
|
|
Basic
|
$0.40
|
|
$0.52
|
|
$2.34
|
|
$2.39
|
Diluted
|
$0.40
|
|
$0.52
|
|
$2.32
|
|
$2.37
|
|
|
|
|
|
|
|
|
Diluted Average Shares Outstanding
|
25,721
|
|
25,635
|
|
25,693
|
|
25,561
|
Segment Reporting
|
(in thousands)
|
|
|
Three Months Ended
|
|
Twelve Months Ended
|
|
|
|
February 28, 2014
|
|
February 28, 2013
|
|
February 28, 2014
|
|
February 28, 2013
|
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net Sales:
|
|
|
|
|
|
|
|
|
|
Electrical and Industrial Products
|
$103,470
|
|
$61,921
|
|
$416,105
|
|
$233,555
|
|
|
Galvanizing Services
|
77,541
|
|
78,470
|
|
335,618
|
|
337,039
|
|
|
|
$181,011
|
|
$140,391
|
|
$751,723
|
|
$570,594
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Operating Income:
|
|
|
|
|
|
|
|
|
|
Electrical and Industrial Products
|
$10,232
|
|
$9,157
|
|
$45,866
|
|
$34,228
|
|
|
Galvanizing Services
|
18,723
|
|
17,176
|
|
91,983
|
|
87,807
|
|
|
Total
Segment Operating Income
|
$28,955
|
|
$26,333
|
|
$137,849
|
|
$122,035
|
|
|
Condensed Consolidated Balance
Sheet
|
(in thousands)
|
|
|
February 28, 2014
|
February 28, 2013
|
|
(unaudited)
|
(unaudited)
|
|
|
|
Assets:
|
|
|
Current
assets
|
$296,181
|
$262,432
|
Net property,
plant and equipment
|
197,639
|
154,476
|
Other assets,
net
|
459,433
|
277,297
|
Total
assets
|
$953,253
|
$694,205
|
|
|
|
Liabilities and shareholders'
equity:
|
|
|
Current
liabilities
|
$144,016
|
$118,900
|
Long term debt
due after one year
|
384,768
|
196,429
|
Long term
liabilities due after one year
|
9,121
|
8,539
|
Other
liabilities
|
39,435
|
36,403
|
Shareholders'
equity
|
375,913
|
333,934
|
Total liabilities and shareholders'
equity
|
$953,253
|
$694,205
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash
Flows
|
(in thousands)
|
|
|
Twelve Months Ended
|
|
February 28, 2014
|
February 28, 2013
|
|
(unaudited)
|
(unaudited)
|
|
|
|
Net cash provided by (used in) operating
activities
|
$107,275
|
$92,738
|
Net cash provided by (used in) investing
activities
|
($310,968)
|
($150,142)
|
Net cash provided by (used in) financing
activities
|
176,333
|
($30,360)
|
Effect of exchange rate changes on
cash
|
($673)
|
$59
|
Net increase (decrease) in cash and cash
equivalents
|
($28,033)
|
($87,705)
|
Cash and cash equivalents at beginning of
period
|
$55,598
|
$143,303
|
Cash and cash equivalents at end of
period
|
$27,565
|
$55,598
|
|
|
|
AZZ incorporated
Non-GAAP Disclosure
Adjusted
Earning and Adjusted Earnings Per Share
Adjusted Earnings and Adjusted Earnings Per
Share
In addition to reporting financial results in accordance
with GAAP, the Company has provided adjusted earnings and adjusted
earnings per share, which are non-GAAP measures.
Management believes that the presentation of these measures
provides investors with greater transparency comparison of
operating results across a broad spectrum of companies , which
provides a more complete understanding of the Company's financial
performance, competitive position and prospects for the
future. Management also believes that investors
regularly rely on non-GAAP financial measures, such as adjusted
earnings and adjusted earnings per share, to assess operating
performance and that such measures may highlight trends in the
Company's business that may not otherwise be apparent when relying
on financial measures calculated in
accordance with GAAP.
The following table provides a reconciliation for the
three and twelve months
ended February 28,
2014 and 2013 between
net income and diluted earnings per share calculated in accordance
with GAAP to adjusted earnings and adjusted per share,
respectively, which are shown net of tax (dollars in thousands,
except per share data):
|
|
Three Months Ended
February 28,
|
|
|
2014
|
|
2013
|
|
|
(in
thousands)
|
|
|
|
Per Diluted
Share
|
|
|
Per Diluted
Share
|
Net income and diluted earnings per
share
|
|
$10,242
|
$0.40
|
|
$13,234
|
$0.52
|
|
|
|
|
|
|
|
Adjustments (net of tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joliet Facility Fire Operating Loss
|
|
126
|
0.0
|
|
637
|
0.03
|
Joliet Facility Fire-Business Interruption Insurance
Proceeds
|
|
-
|
-
|
|
-
|
-
|
Joliet Facility Fire-Gain from Property Insurance
Proceeds
|
|
(92)
|
-
|
|
-
|
-
|
Law Suit Settlement
|
|
-
|
-
|
|
-
|
-
|
Acquisition Integration Related
Expenditures
|
|
476
|
0.02
|
|
197
|
0.0
|
Acquisition Related Expense
|
|
-
|
-
|
|
415
|
0.02
|
|
|
|
|
|
|
|
Adjusted earnings and adjusted earnings per
share
|
|
$10,752
|
$0.42
|
|
$14,483
|
$0.57
|
|
|
|
|
Twelve Months
Ended February 28,
|
|
|
2014
|
|
2013
|
|
|
(in
thousands)
|
|
|
|
Per Diluted
Share
|
|
|
Per Diluted
Share
|
Net income and diluted earnings per
share
|
|
$59,597
|
$2.32
|
|
$60,456
|
$2.37
|
|
|
|
|
|
|
|
Adjustments (net of tax)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joliet Facility Fire Operating Loss
|
|
2,014
|
0.08
|
|
2,371
|
0.09
|
Joliet Facility Fire-Business Interruption Insurance
Proceeds
|
|
(1,796)
|
(0.07)
|
|
-
|
-
|
Joliet Facility Fire-Gain from Property Insurance
Proceeds
|
|
(5,098)
|
(0.20)
|
|
(5,827)
|
(0.23)
|
Law Suit Settlement
|
|
(2,665)
|
(0.10)
|
|
-
|
-
|
Acquisition Integration Related
Expenditures
|
|
1,223
|
0.05
|
|
182
|
0.0
|
Acquisition Related Expense
|
|
2,193
|
0.08
|
|
1,090
|
0.05
|
|
|
|
|
|
|
|
Adjusted earnings and adjusted earnings per
share
|
|
$55,468
|
$2.16
|
|
$58,272
|
$2.28
|
SOURCE AZZ incorporated