FORT WORTH, Texas, April 22, 2015 /PRNewswire/ -- AZZ
incorporated (NYSE:AZZ), a global provider of galvanizing services,
welding solutions, specialty electrical equipment and highly
engineered services, today announced financial results for the
three and twelve-month periods ended February 28, 2015.
Fourth Quarter and Fiscal Year Results
Revenues for the fourth quarter were $182.3 million compared to $181.0 million for the same quarter last year, an
increase of 0.7 percent. Net income for the fourth quarter was
$16.3 million, or $0.63 per diluted share, compared to net income
of $10.2 million, or $0.40 per diluted share, for last year's fourth
fiscal quarter.
Earnings for the fourth quarter of fiscal 2015 were positively
impacted by a favorable effective tax rate of 14.5% compared to
39.0% in the fourth quarter of the prior year. The full year
fiscal 2015 effective tax rate was 27.9% compared to 36.5% in
fiscal 2014.
For the twelve-month period, the Company reported revenues of
$816.7 million compared to
$751.7 million for the comparable
period last year, an increase of 8.6 percent. Net income for
the twelve months was $64.9 million,
or $2.52 per diluted share, compared
to $59.6 million, or $2.32 per diluted share in the comparable period
of last year.
Our backlog at the end of the 2015 fiscal year was $332.6 million. Backlog at the end of the prior
year was $325.0 million and
$300.3 million at end of third
quarter fiscal 2015. Incoming orders for the year were
$824.3 million while shipments for
the year totaled $816.7 million,
resulting in a book to ship ratio of 101 percent. Of the backlog of
$332.6 million, 24 percent will be
delivered outside of the U.S.
Energy Segment
Revenues for the Energy Segment for the fourth quarter of fiscal
2015 were $97.2 million as compared
to $103.5 million for the same
quarter last year, decreasing 6.1 percent. Operating income
for the segment increased 6.0 percent to $9.8 million compared to $9.2 million in the same period last year.
Operating margins for the fourth quarter were 10.1 percent for the
quarter as compared to 8.9 percent in the prior year period. For
fiscal 2015, revenues increased 10.1 percent to $458.3 million and operating income decreased
13.1 percent to $38.7 million
compared to $416.1 million and
$44.5 million respectively, in the
prior year period. Operating margins for the 2015 fiscal year
were 8.4 percent as compared to 10.7 percent in the prior year
period, and were affected by costs related to our previously
announced realignment program and certain cost overruns on projects
recognized in the second quarter of fiscal 2015.
Galvanizing Services Segment
Revenues for the Company's Galvanizing Services Segment for the
fourth quarter were $85.1 million,
compared to the $77.5 million in the
same period last year, an increase of 9.8
percent. Operating income was $20.3 million as compared to $18.7 million in the prior period, an increase of
8.8 percent. Operating margins for the fourth quarter were 23.9
percent, compared to 24.1 percent in the same period last
year. For fiscal 2015, revenues increased 6.8 percent to
$358.3 million and operating income
increased 0.9 percent to $88.6
million compared to $335.6
million and $87.8 million
respectively, for the twelve months of the prior fiscal year.
Operating margins for the 2015 fiscal year were 24.7 percent
compared to 26.2 percent in the prior year period, and were
negatively impacted by higher zinc costs and severe weather
conditions.
Management Discussion
Tom Ferguson, president and chief
executive officer of AZZ incorporated, commented, "We are pleased
with the financial performance achieved during the quarter and
fiscal year, resulting in record revenues, improving margins and
strong cash flow, despite the operating challenges addressed during
the year. Fiscal Year 2015 was AZZ's 28th consecutive
year of profitability, a testament to all the employees of
AZZ."
Mr. Ferguson continued, "As I noted on the last call, our
markets remained mixed during the fourth quarter and our
Galvanizing and Energy businesses were impacted by severe weather
conditions resulting in delays. Within the Energy segment, WSI was
impacted by the refinery strikes that slightly reduced the amount
of work completed during available turnarounds. We are seeing
improvements in our quoting activity within our Energy business
segment, resulting in improved backlog and we anticipate further
improvements in our core markets during fiscal 2016. Although
we are seeing a slight impact on a couple of our businesses due to
lower oil prices and reduced rig count, we continue to see a number
of opportunities for growth in most of our businesses. We
remain focused on leveraging our sales teams across our Energy
businesses in North America;
aggressively expanding internationally; driving operational
excellence and growing our galvanizing business, both organically
and with targeted acquisitions."
Mr. Ferguson concluded, "The continued success of AZZ is due to
the hard work, dedication, and the operational excellence displayed
by our employees every day. I greatly appreciate their ongoing
efforts. The Energy leadership team has made significant
progress in accomplishing a number of strategic initiatives, which
bolsters our confidence for continued growth in the coming years.
The Galvanizing leadership team continues to excel and demonstrates
both discipline and focus on providing our customers with industry
leading service and support. We have a solid and balanced portfolio
of products and innovative technologies; a respected position
within our core markets; and loyal customers due to our commitment
to superior service and quality products. I am confident that
fiscal 2016 will be a solid year and I am reaffirming our
previously issued guidance for fiscal 2016 EPS in the range of
$2.75 to $3.25 per diluted share and
revenues to be in the range of $875 million
to $925 million."
Conference Call
AZZ incorporated will conduct a conference call to discuss
financial results for the fourth quarter and fiscal year 2015 at
11:00 A.M. ET on Wednesday, April 22, 2015. 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 #10062911 or for 30
days at http://www.azz.com/investor-relations.
About AZZ incorporated
AZZ incorporated is a global provider of galvanizing services,
welding solutions, specialty electrical equipment and highly
engineered services to the markets of power generation,
transmission, distribution and industrial in protecting metal and
electrical systems used to build and enhance the world's
infrastructure. AZZ Galvanizing is a leading provider of metal
finishing solutions for corrosion protection, including hot dip
galvanizing to the North American steel fabrication industry. AZZ
Energy is dedicated to delivering safe and reliable transmission of
power from generation sources to end customers, and automated weld
overlay solutions for corrosion and erosion mitigation to critical
infrastructure in the energy markets worldwide.
Safe Harbor Statement
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 political stability and
economic conditions of the various markets that AZZ serves, foreign
and domestic, customer requested delays of shipments, acquisition
opportunities, currency exchange rates, adequacy of financing, and
availability of experienced management and 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, 2015 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:
|
Paul Fehlman, 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,
2015
|
|
February 28,
2014
|
|
February 28,
2015
|
|
February 28,
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$182,311
|
|
$181,011
|
|
$816,687
|
|
$751,723
|
Costs of
Sales
|
134,879
|
|
135,287
|
|
610,991
|
|
546,018
|
Operating Income
|
47,432
|
|
45,724
|
|
205,696
|
|
205,705
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative
|
24,339
|
|
24,613
|
|
98,871
|
|
105,591
|
Operating Income
|
23,093
|
|
21,111
|
|
106,825
|
|
100,114
|
|
|
|
|
|
|
|
|
Interest
Expense
|
4,030
|
|
4,663
|
|
16,561
|
|
18,407
|
Net (Gain) Loss on
Sales or Insurance Settlement of
Property, Plant and
Equipment
|
(1,330)
|
|
217
|
|
(2,525)
|
|
(8,039)
|
Other (Income),
net
|
1,350
|
|
(549)
|
|
2,659
|
|
(4,165)
|
Income before income
taxes
|
19,043
|
|
16,780
|
|
90,130
|
|
93,911
|
Income Tax
Expense
|
2,759
|
|
6,538
|
|
25,187
|
|
34,314
|
Net income
|
$16,284
|
|
$10,242
|
|
$64,943
|
|
$59,597
|
Net income per
share
|
|
|
|
|
|
|
|
Basic
|
$0.63
|
|
$0.40
|
|
$2.53
|
|
$2.34
|
Diluted
|
$0.63
|
|
$0.40
|
|
$2.52
|
|
$2.32
|
Diluted average shares
outstanding
|
25,794
|
|
25,721
|
|
25,778
|
|
25,693
|
|
|
|
Segment
Reporting
|
(in
thousands)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
February 28,
2015
|
|
February 28,
2014
|
|
February 28,
2015
|
|
February 28,
2014
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net Sales:
|
|
|
|
|
|
|
|
Energy
|
$97,206
|
|
$103,470
|
|
$458,339
|
|
$416,106
|
Galvanizing Services
|
85,105
|
|
77,541
|
|
358,348
|
|
335,617
|
|
$182,311
|
|
$181,011
|
|
$816,687
|
|
$751,723
|
|
|
|
|
|
|
|
|
Segment Operating
Income :
|
|
|
|
|
|
|
|
Energy
|
$9,805
|
|
$9,249
|
|
$38,703
|
|
$44,513
|
Galvanizing Services
|
20,337
|
|
18,699
|
|
88,562
|
|
87,808
|
Corporate
|
(7,049)
|
|
(6,837)
|
|
(20,440)
|
|
(32,207)
|
Total
Segment Operating Income
|
$23,093
|
|
$21,111
|
|
$106,825
|
|
$100,114
|
Condensed
Consolidated Balance Sheet
|
(in
thousands)
|
|
|
February 28,
2015
|
February 28,
2014
|
|
|
|
|
|
|
Assets:
|
|
|
Current
Assets
|
$298,634
|
$296,181
|
Net Property, Plant
and Equipment
|
196,583
|
197,639
|
Other Assets,
Net
|
441,697
|
459,433
|
Total
Assets
|
$936,914
|
$953,253
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
Current
Liabilities
|
$149,142
|
$144,016
|
Long Term Debt Due
After One Year
|
315,982
|
384,768
|
Long Term Liabilities
Due After One Year
|
-
|
9,121
|
Other
Liabilities
|
51,738
|
39,435
|
Shareholders'
Equity
|
420,052
|
375,913
|
Total Liabilities and
Shareholders' Equity
|
$936,914
|
$953,253
|
|
|
|
|
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in
thousands)
|
|
|
Twelve Months
Ended
|
|
February 28,
2015
|
|
February 28,
2014
|
|
|
|
|
|
|
|
|
Net cash provided by
(used in) operating activities
|
$118,157
|
|
$107,275
|
Net cash provided by
(used in) investing activities
|
(39,565)
|
|
(310,969)
|
Net cash provided by
(used in) financing activities
|
(82,414)
|
|
176,333
|
Effect of exchange
rate changes on cash
|
(1,216)
|
|
(672)
|
Net increase
(decrease) in cash and cash equivalents
|
($5,038)
|
|
($28,033)
|
Cash and cash
equivalents at beginning of period
|
27,565
|
|
55,598
|
Cash and cash
equivalents at end of period
|
$22,527
|
|
$27,565
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/azz-incorporated-reports-financial-results-for-the-fourth-quarter-and-fiscal-year-2015-300070010.html
SOURCE AZZ incorporated