FORT WORTH, Texas, Sept. 29, 2011 /PRNewswire/ -- AZZ incorporated
(NYSE: AZZ), a manufacturer of electrical products and a provider
of galvanizing services, today announced unaudited financial
results for the three and six-month periods ended August 31, 2011. Revenues for the second quarter
were $114.7 million compared to
$99.6 million for the same quarter
last year, an increase of 15 percent. Net income for the second
quarter was $9.6 million, or
$0.76 per diluted share, compared to
net income of $9.6 million, or
$0.77 per diluted share, in last
year’s second fiscal quarter.
For the six-month period, the Company reported revenues of
$229 million compared to $177.1 million for the comparable period last
year, an increase of 29 percent. Net income for the six
months was $19.1 million, or
$1.51 per diluted share, compared to
$16 million, or $1.27 per diluted share in the comparable period
of last year.
Backlog at the end of our second quarter was $123.2 million. Backlog at the end of the second
quarter of FY 2011 was $106.5 million
and $108.4 million at February 28, 2011. Incoming orders for the
second quarter were $123.1 million
while shipments for the quarter totaled $114.7 million, resulting in a book to ship ratio
of 107 percent. Based upon current customer requested delivery
dates and our production schedules, 66 percent of the backlog at
August 31, 2011 is expected to ship
in the current fiscal year. Of the backlog of $123.2 million, 33 percent is to be delivered
outside of the U.S.
Revenues for the Electrical and Industrial Products Segment for
the second quarter of Fiscal 2012 were $44.4
million as compared to $40.8
million for the same quarter last year, an increase of 9
percent. Operating income for the segment decreased 33
percent to $5.1 million compared to
$7.5 million in the same period last
year. Operating margins for the second quarter were 11
percent for the quarter as compared to 18.5 percent in the prior
year period. For the first six months of Fiscal 2012,
revenues increased 19 percent to $92.7
million and operating income decreased 12 percent to
$12.5 million compared to
$77.9 million and $14.1 million respectively, for the first six
months of the prior year. Operating margin for the first six
months was 13 percent as compared to 18 percent in the prior year
period.
Revenues for the Company’s Galvanizing Service Segment for the
second quarter were $70.3 million,
compared to the $58.8 million in the
same period last year, an increase of 19 percent.
Operating income was $18.8
million as compared to $15.2
million in the prior period, an increase of 23 percent.
Tonnage shipped increased 16 percent when compared to the prior
period. Operating margins for the second quarter were 27 percent,
compared to 26 percent in the same period last year. For the six
months of Fiscal 2012, revenues increased 38 percent to
$136.3 million and operating income
increased 34 percent to $35.9 million
compared to $99.2 million and
$26.7 million respectively, for the
first six months of the prior year. Operating margins were 26
percent compared to 27 percent in the prior period. The
contribution for the first six months of fiscal 2012 from the
acquisition of North American Galvanizing was $39.5 million in revenues and $8.9 million in operating income.
David H. Dingus, president and
chief executive officer of AZZ incorporated, commented, “The second
quarter was another quarter of effective identification and
execution of our opportunities in a market environment of continued
economic and regulatory uncertainty. Pricing pressures
remain, however, we continued to adhere to a strategy of improved
margin targets for our new business. We achieved another
quarter of backlog growth and are extremely pleased with both the
volume and operating margins of the Galvanizing Services Segment.
We continue our effort to identity product and market
expansion opportunities to further enhance our strategic
position.”
Based upon the evaluation of information currently available to
management, we are maintaining our Fiscal Year 2012 guidance for
revenues to be in the range of $450 million
to $475 million and for earnings to be within the range of
$2.90 to $3.10 per diluted share.
Our guidance does include the increased interest expense in
Fiscal 2012 of $0.34 per diluted
share associated with the $125
million of Senior Private Placement Notes issued on
January 20, 2011.
Additionally, the Company announced that the Board of Directors,
at its regularly scheduled quarterly meeting, declared a
25 cent per share cash dividend on
the Company’s common stock outstanding. The dividend will be
paid at the close of business on October 31,
2011, to shareholders of record on October 14, 2011.
AZZ incorporated will conduct a conference call to discuss
financial results for the second quarter of Fiscal Year 2012 at
4:30 P.M. ET on Thursday, September 29, 2011. 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 www.azz.com/azzinvest.htm. A replay of the call
will be available for three days at (877) 344-7529 or (412)
317-0088 (international), confirmation #10004310, or for 30 days at
www.azz.com/azzinvest.htm.
AZZ incorporated is a specialty electrical equipment
manufacturer serving the global markets of power generation,
transmission and distribution and industrial, as well as a leading
provider of hot dip galvanizing services to the steel fabrication
market nationwide.
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 electrical 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,
2011 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:
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Dana Perry, Senior Vice
President – Finance and CFO
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AZZ incorporated 817-810-0095
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Internet:
www.azz.com
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Lytham Partners
602-889-9700
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Joe Dorame or Robert
Blum
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Internet: www.lythampartners.com
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---Financial tables to follow---
AZZ
incorporated
Condensed
Consolidated Statement of Income
(in
thousands except per share amounts)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
August
31,
2011
|
|
August
31,
2010
|
|
August
31,
2011
|
|
August
31,
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$114,661
|
|
$99,591
|
|
$228,994
|
|
$177,066
|
|
Costs and Expenses:
|
|
|
|
|
|
|
|
|
Cost of
Sales
|
84,281
|
|
70,538
|
|
167,545
|
|
124,449
|
|
Selling, General
and Administrative
|
11,740
|
|
12,230
|
|
24,790
|
|
24,505
|
|
Interest
Expense
|
3,464
|
|
1,768
|
|
6,934
|
|
3,459
|
|
Net (Gain) Loss on
Sales or
Insurance Settlement of Property,
Plant
and Equipment
|
(60)
|
|
(48)
|
|
171
|
|
(57)
|
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Other
(Income)
|
(385)
|
|
(395)
|
|
(1,032)
|
|
(760)
|
|
|
$99,040
|
|
$84,093
|
|
$198,408
|
|
$151,596
|
|
|
|
|
|
|
|
|
|
|
Income before income
taxes
|
15,621
|
|
15,498
|
|
30,586
|
|
25,470
|
|
Income Tax Expense
|
6,015
|
|
5,851
|
|
11,515
|
|
9,450
|
|
Net income
|
$9,606
|
|
$9,647
|
|
$19,071
|
|
16,020
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Net income per share
|
|
|
|
|
|
|
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Basic
|
$0.76
|
|
$0.77
|
|
$1.52
|
|
$1.29
|
|
Diluted
|
$0.76
|
|
$0.77
|
|
$1.51
|
|
$1.27
|
|
Diluted
average shares outstanding
|
12,677
|
|
12,599
|
|
12,661
|
|
12,574
|
|
|
|
|
|
|
|
|
|
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Segment
Reporting
(in
thousands)
|
|
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Three Months
Ended
|
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Six Months
Ended
|
|
|
|
August
31,
2011
|
|
August
31,
2010
|
|
August
31,
2011
|
|
August
31,
2010
|
|
|
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(unaudited)
|
|
(unaudited)
|
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(unaudited)
|
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(unaudited)
|
|
|
|
|
|
|
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Net Sales:
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Electrical and
Industrial Products
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$44,402
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$40,768
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$92,669
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$77,929
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Galvanizing
Services
|
70,259
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58,823
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|
136,325
|
|
99,137
|
|
|
|
$114,661
|
|
$99,591
|
|
$228,994
|
|
$177,066
|
|
|
|
|
|
|
|
|
|
|
|
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Segment Operating Income
(a):
|
|
|
|
|
|
|
|
|
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Electrical and
Industrial Products
|
$5,081
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|
$7,538
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$12,495
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$14,148
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|
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Galvanizing
Services
|
18,755
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15,241
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35,876
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|
26,715
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|
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Total Segment
Operating Income
|
$23,836
|
|
$22,779
|
|
$48,371
|
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$40,863
|
|
|
|
|
|
|
|
|
|
|
|
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Condensed
Consolidated Balance
Sheet
(in
thousands)
|
|
|
August 31,
2011
|
February 28,
2011
|
|
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(unaudited)
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(audited)
|
|
|
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Assets:
|
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Current
assets
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$302,111
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$284,019
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Net
property, plant and equipment
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$125,999
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$125,362
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Other
assets, net
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$155,136
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$157,144
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Total
assets
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$583,246
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$566,525
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Liabilities and shareholders’
equity:
|
|
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Current
liabilities
|
$74,183
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$58,186
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Long term
debt due after one year
|
$210,714
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$225,000
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Other
liabilities
|
$27,542
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$ 27,321
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Shareholders’ equity
|
$270,807
|
$256,018
|
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Total liabilities and
shareholders’ equity
|
$583,246
|
$566,525
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed
Consolidated Statement of Cash Flows
(in
thousands)
|
|
|
Six Months
Ended
|
|
|
August 31, 2011
|
August 31, 2010
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
|
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Net cash provided by (used in)
operating activities
|
$26,973
|
$ 8,013
|
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Net cash provided by (used in)
investing activities
|
($10,275)
|
($109,403)
|
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Net cash provided by (used in)
financing activities
|
($6,010)
|
($
408)
|
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Effect of exchange rate changes
on cash
|
$
22
|
$
27
|
|
Net increase (decrease) in cash
and cash equivalents
|
$10,710
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($101,771)
|
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Cash and cash equivalents at
beginning of period
|
$138,390
|
$ 110,607
|
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Cash and cash equivalents at end
of period
|
$149,100
|
$
8,836
|
|
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SOURCE AZZ incorporated