AZZ incorporated Reports Year-to-Date and Second Quarter Results of Fiscal-Year 2005
24 September 2004 - 1:42AM
PR Newswire (US)
AZZ incorporated Reports Year-to-Date and Second Quarter Results of
Fiscal-Year 2005 For the Six Months - Revenues Increase 8%, Net
Income Up 15%, Earnings per Share Increase 11% and Backlog Is Up
11% FORT WORTH, Texas, Sept. 23 /PRNewswire-FirstCall/ -- 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, 2004. Revenues for the second quarter were $36.5 million,
compared to $34.0 million for the comparable period last year. Net
income for the second quarter was $0.9 million, or $0.16 per
diluted share, compared to net income of $1.0 million, or $0.19 per
diluted share, in last year's fiscal second quarter. Backlog at the
end of the second quarter was $53.8 million, compared to $51.9
million at the end of the previous quarter and $48.5 million for
the comparable period last year. Incoming orders for the second
quarter totaled $38.4 million for a book to ship ratio of 105
percent for the quarter. Outstanding debt at the end of the quarter
was $28.6 million, down 11 percent from the comparable period last
year. AZZ's long-term debt to equity ratio is now .32 to 1.
Compliance cost associated with Sarbanes Oxley and implementation
cost associated with our new Oracle ERP system in the amount of
$399,000 are included in Selling, General and Administrative
expense for the six month period ending August 31, 2004. For the
six-month period, the Company reported revenues of $76.2 million,
compared to $70.4 million for the comparable period last year. Net
income for the six months was $2.2 million, or $0.39 per diluted
share, compared to $1.9 million, or $0.35 per diluted share for the
comparable six-month period last year. Incoming orders for the
first six-month period were $76.9 million for a year to date book
to ship ratio of 101 percent. Revenues for the Electrical and
Industrial Products Segment were $23.4 million for the second
quarter, compared to $22.1 million in the previous year's second
quarter. Operating income for this segment was $1.3 million,
compared to $1.5 million in the second quarter of last year. For
the first six months, revenues were $51.0 million and operating
income was $3.2 million compared to $46.3 and $3.0 million
respectively for the first six months of the prior year. David H.
Dingus, president and chief executive officer of AZZ incorporated,
commented, "Quotation activity in our Electrical and Industrial
Products Segment continued to show some signs of improvement, both
domestically and internationally. While our second quarter book to
ship ratio showed improvement over the first quarter, several
projects continued to be delayed due to some remaining economic
uncertainty in the industrial markets, and pending energy
legislation. Competitive pricing pressures continued and some
opportunities were lost due to pricing being below our acceptable
margin level. Additionally, margins continued to be adversely
impacted by our inability to pass along many of the material cost
increases we have incurred, due again to competitive pricing
levels. We remain optimistic that our efforts to continually
improve on our operating efficiency and lower our internal cost
structure, combined with our expansion of served markets, should
facilitate future improvement in revenues and operating margins."
Revenues for the Company's Galvanizing Service Segment were $13.1
million for the second quarter, compared to $11.9 million in the
previous year's comparable quarter. Operating income for the
Segment was $2.4 million compared to $2.0 million in the same
quarter last year. For the first six months of fiscal 2004,
revenues were $25.2 million, and operating income was $4.7 million
compared to $24.1 and $4.0 million, respectively, for the first six
months of the prior year. Mr. Dingus continued, "We are very
pleased with the operating results of this segment for the second
quarter and year-to-date. The stabilization of our served markets,
the ability to recover our cost increases in our pricing, and the
leverage gained from prior adjustments to our cost and operating
structure, allowed us to show a substantial improvement in margins
on a modest increase in volume. We believe that a sustained
improvement in our served markets will continue to reflect improved
operating results for this Segment." Mr. Dingus concluded, "On a
year to date basis, our revenues and income are consistent with our
internal targets. This combined with the evaluation of information
currently available to management, we are continuing to estimate
FY2005 earnings to be within the range of $0.75 to $0.85 per
diluted share and revenues to be within the range of $140 to $150
million. Our earnings per share estimate includes the portion of
Oracle ERP system implementation project cost of $650,000, which
does not qualify for capitalization, in fiscal 2005. Approximately
$280,000 of this amount was incurred in the first six months of the
current fiscal year. AZZ incorporated will conduct a conference
call to discuss financial results for the second quarter of fiscal
2005 at 4:15 P.M. Eastern on September 23, 2004. Interested parties
can access the call at (719) 457-2625. The call will be web cast
via the Internet at http://www.azz.com/AZZinvest.htm. A replay of
the call will be available for three days at (719) 457-0820,
confirmation #265129, or for 30 days at
http://www.azz.com/AZZinvest.htm. AZZ incorporated is a specialty
electrical equipment manufacturer serving the global markets of
industrial, power generation, transmission and distribution, as
well as a leading provider of hot dip galvanizing services to the
steel fabrication market nationwide. Except for the statements of
historical fact, this release may contain forward-looking
statements that involve risks and uncertainties some of which are
detailed from time to time in documents filed by the Company with
the SEC. Those risks and uncertainties include, but are not limited
to: changes in customer demand and response to products and
services offered by the company, 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 costs, including zinc and natural
gas which are used in the hot dip galvanizing process; changes in
the economic conditions of the various markets the Company serves,
foreign and domestic, customer requested delays of shipments,
acquisition opportunities, adequacy of financing, and availability
of experienced management employees to implement the Company's
growth strategy. The Company can give no assurance that such
forward-looking statements will prove to be correct. Condensed
Consolidated Statement of Income (in thousands except per share
amount) Three Months Ended Six Months Ended August 31, August 31,
August 31, August 31, 2004 2003 2004 2003 (unaudited) (unaudited)
(unaudited) (unaudited) Net sales $36,510 $34,011 $76,204 $70,358
Income before taxes $1,440 $1,607 $3,417 $3,031 Net income $908
$996 $2,153 $1,879 Net income per share Basic $0.17 $0.19 $0.40
$0.35 Diluted $0.16 $0.19 $0.39 $0.35 Diluted average shares
outstanding 5,513 5,366 5,509 5,336 Condensed Consolidated Balance
Sheet (in thousands) August 31, February 28, 2004 2004 (unaudited)
(audited) Assets: Current assets $44,572 $43,713 Net property,
plant and equipment $34,932 $34,201 Other assets, net $42,351
$42,112 Total assets $121,855 $120,026 Liabilities and
shareholders' equity: Current liabilities $24,874 $23,504 Long term
debt due after one year $23,125 $25,375 Other liabilities $1,940
$1,850 Shareholders' equity $71,916 $69,297 Total liabilities and
shareholders' equity $121,855 $120,026 Condensed Consolidated
Statement of Cash Flow (in thousands) Six Months Six Months Ended
Ended August 31, August 31, 2004 2003 (unaudited) (unaudited) Net
cash provided by (used in) operating activities $5,385 $12,146 Net
cash provided by (used in) investing activities ($3,493) ($338) Net
cash provided by (used in) financing activities ($2,080) ($11,712)
Net increase (decrease) in cash and cash equivalents ($188) $96
Cash and cash equivalents at beginning of year $1,445 $1,984 Cash
and cash equivalents at end of quarter $1,257 $2,080 DATASOURCE:
AZZ incorporated CONTACT: Dana Perry, Senior Vice President -
Finance and CFO of AZZ incorporated, +1-817-810-0095; or Retail:
Robert Blum, or Institutional/Analysts: Joe Dorame, or Media:
Kristen Klein, all of RCG Capital Markets Group, Inc.,
+1-480-675-0400, for AZZ incorporated Web site:
http://www.azz.com/AZZinvest.htm http://www.azz.com/
Copyright
AZZ (NYSE:AZZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
AZZ (NYSE:AZZ)
Historical Stock Chart
From Jul 2023 to Jul 2024