FORT WORTH, Texas, Jan. 6, 2012 /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 nine-month periods ended
November 30, 2011. Revenues for the
third quarter were $116.5 million
compared to $102.9 million for the
same quarter last year, an increase of 13 percent. Net income for
the third quarter was $10 million, or
$0.79 per diluted share, compared to
net income of $9.7 million, or
$0.77 per diluted share, in last
year's third fiscal quarter.
For the nine-month period, the Company reported revenues of
$345.5 million compared to
$280 million for the comparable
period last year, an increase of 23 percent. Net income for
the nine months was $29.1 million, or
$2.30 per diluted share, compared to
$25.7 million, or $2.04 per diluted share in the comparable period
of last year.
Backlog at the end of the Company's third quarter was
$132.1 million. Backlog at the end of
the third quarter of FY 2011 was $101.7
million and $108.4 million at
February 28, 2011. Incoming
orders for the third quarter were $125.4
million while shipments for the quarter totaled $116.5 million, resulting in a book to ship ratio
of 108 percent. Based upon current customer requested delivery
dates and the Company's production schedules, 43 percent of the
backlog at November 30, 2011 is
expected to ship in the current fiscal year. Of the backlog
of $132.1 million, 32 percent is to
be delivered outside of the U.S.
Revenues for the Electrical and Industrial Products Segment for
the third quarter of Fiscal 2012 were $43.8
million as compared to $41.1
million for the same quarter last year, an increase of 7
percent. Operating income for the segment decreased 8 percent
to $5.7 million compared to
$6.2 million in the same period last
year. Operating margins for the third quarter were 13 percent
as compared to 15 percent in the prior year
period. For the first nine months of Fiscal 2012,
revenues increased 15 percent to $136.5
million and operating income decreased 10 percent to
$18.2 million compared to
$119 million and $20.3 million respectively, for the first nine
months of the prior year. Operating margin for the first nine
months was 13 percent as compared to 17 percent in the prior year
period.
Revenues for the Company's Galvanizing Service Segment for the
third quarter were $72.6 million,
compared to the $61.8 million in the
same period last year, an increase of 17
percent. Operating income was $18.6 million as compared to $15.4 million in the prior period, an increase of
20 percent. Tonnage shipped increased 18 percent when compared to
the prior period. Operating margins for the third quarter were 25.5
percent, compared to 25 percent in the same period last year. For
the nine months of Fiscal 2012, revenues increased 30 percent to
$209 million and operating income
increased 30 percent to $54.4 million
compared to $161 million and
$42.1 million respectively, for the
first nine months of the prior year. Operating margins were
26 percent compared to 26 percent in the prior period. The
contribution for the first nine months of fiscal 2012 from the
acquisition of North American Galvanizing was $60.7 million in revenues and $13.5 million in operating income, compared to
$33.4 million and $8.0 million, respectively, in the prior
year.
David H. Dingus, president and
chief executive officer of AZZ incorporated, commented, "We are
pleased with the results of the third quarter of fiscal 2012 for
both segments of the Company. The quarter and first nine
months positively reflect effective identification and execution of
our opportunities in a market environment of continued economic and
regulatory uncertainty, combined with lingering pricing
pressures. 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 efforts to
identity product and market expansion opportunities to further
enhance our strategic position that will supplement our organic
growth."
Based upon the evaluation of information currently available to
management, we are revising our Fiscal Year 2012 guidance for
revenues to be in the range of $465 million
to $475 million and for earnings to be within the range of
$3.00 to $3.15 per diluted
share. Previously our guidance was for revenues to be in the
range of $450 to $475 million and for
earnings to be within the range of $2.90 to
$3.10. 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.
AZZ incorporated will conduct a conference call to discuss
financial results for the third quarter of Fiscal Year 2012 at
11:00 A.M. EST on Friday, January 6, 2012. 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 #10007561, 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:
|
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
|
---Financial tables on the
following page---
AZZ
incorporated
Condensed Consolidated Statement of Income
(in thousands except per share amounts)
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
November
30,
2011
|
|
November
30,
2010
|
|
November
30,
2011
|
|
November
30,
2010
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Net
sales
|
$116,493
|
|
$102,898
|
|
$345,487
|
|
$279,963
|
Costs and
Expenses:
|
|
|
|
|
|
|
|
Cost of Sales
|
85,686
|
|
75,253
|
|
253,231
|
|
199,702
|
Selling, General and
Administrative
|
11,320
|
|
10,918
|
|
36,110
|
|
35,423
|
Interest Expense
|
3,519
|
|
1,787
|
|
10,453
|
|
5,246
|
Net (Gain) Loss on Sales
or
Insurance
Settlement of Property,
Plant and
Equipment
|
(7)
|
|
7
|
|
164
|
|
(50)
|
Other (Income)
|
(193)
|
|
(257)
|
|
(1,225)
|
|
(1,017)
|
|
$100,325
|
|
$87,708
|
|
$298,733
|
|
$239,304
|
|
|
|
|
|
|
|
|
Income
before income taxes
|
16,168
|
|
15,190
|
|
46,754
|
|
$40,659
|
Income Tax
Expense
|
6,147
|
|
5,472
|
|
17,662
|
|
14,921
|
Net
income
|
$10,021
|
|
$9,718
|
|
$29,092
|
|
$25,738
|
Net income
per share
|
|
|
|
|
|
|
|
Basic
|
$0.80
|
|
$0.78
|
|
$2.32
|
|
$2.07
|
Diluted
|
$0.79
|
|
$0.77
|
|
$2.30
|
|
$2.04
|
Diluted average shares
outstanding
|
12,687
|
|
12,622
|
|
12,670
|
|
12,590
|
|
|
|
|
|
|
|
|
Segment
Reporting
(in thousands)
|
|
Three
Months Ended
|
|
Nine
Months Ended
|
|
|
November
30,
2011
|
|
November
30,
2010
|
|
November
30,
2011
|
|
November
30,
2010
|
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
(unaudited)
|
|
|
|
|
|
|
|
Net
Sales:
|
|
|
|
|
|
|
|
|
Electrical and Industrial
Products
|
$43,849
|
|
$41,051
|
|
$136,518
|
|
$118,980
|
|
Galvanizing Services
|
72,644
|
|
61,847
|
|
208,969
|
|
160,983
|
|
|
$116,493
|
|
$102,898
|
|
$345,487
|
|
$279,963
|
|
|
|
|
|
|
|
|
|
|
Segment
Operating Income (a):
|
|
|
|
|
|
|
|
|
Electrical and Industrial
Products
|
$5,719
|
|
$6,185
|
|
$18,214
|
|
$20,333
|
|
Galvanizing Services
|
18,555
|
|
15,421
|
|
54,431
|
|
42,135
|
|
Total Segment Operating
Income
|
$24,274
|
|
$21,606
|
|
$72,645
|
|
$62,468
|
|
Condensed Consolidated Balance Sheet
(in thousands)
|
|
November
30,
2011
|
February
28,
2011
|
|
(unaudited)
|
(audited)
|
|
|
|
Assets:
|
|
|
Current
assets
|
$313,019
|
$284,019
|
Net property, plant
and equipment
|
$127,091
|
$125,362
|
Other assets,
net
|
$153,556
|
$157,144
|
Total
assets
|
$593,666
|
$566,525
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
Current
liabilities
|
$74,876
|
$58,186
|
Long term debt due
after one year
|
$210,714
|
$225,000
|
Other
liabilities
|
$30,171
|
$27,321
|
Shareholders'
equity
|
$277,905
|
$256,018
|
Total
liabilities and shareholders' equity
|
$593,666
|
$566,525
|
|
|
|
|
|
|
Condensed Consolidated Statement of Cash Flows
(in thousands)
|
|
Nine
Months Ended
|
|
November
30,
2011
|
November
30,
2010
|
|
(unaudited)
|
(unaudited)
|
|
|
|
Net cash
provided by (used in) operating activities
|
$46,832
|
$25,528
|
Net cash
provided by (used in) investing activities
|
($16,070)
|
($114,883)
|
Net cash
provided by (used in) financing activities
|
($9,221)
|
($14,552)
|
Effect of
exchange rate changes on cash
|
$168
|
($47)
|
Net
increase (decrease) in cash and cash equivalents
|
$21,709
|
($103,954)
|
Cash and
cash equivalents at beginning of period
|
$138,390
|
$
110,607
|
Cash and
cash equivalents at end of period
|
$160,099
|
$6,653
|
|
|
|
SOURCE AZZ incorporated