Welcome!

Microsoft Cloud Authors: Elizabeth White, Mihai Corbuleac, Pat Romanski, David Bermingham, Steven Mandel

News Feed Item

AZZ incorporated Reports Results for the Third Quarter and Year-To-Date of Fiscal Year 2013, and Announces the Acquisition of G3 Galvanizing Limited in Halifax, Nova Scotia

For the nine months - Revenues Increase 25%, Net Income up 62%, Earnings per Share Increased 61% and Backlog Increased 63% when compared to the same period last year

FORT WORTH, Texas, Jan. 9, 2013 /PRNewswire/ -- AZZ incorporated (NYSE:AZZ), (the "Company" or "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, 2012. Revenues for the third quarter were $149.7 million compared to $116.5 million for the same quarter last year, an increase of 29 percent. Net income for the third quarter was $15.4 million, or $0.60 per diluted share, compared to net income of $10.0 million, or $0.39 per diluted share, in last year's third fiscal quarter. 

For the nine-month period, the Company reported revenues of $430.2 million compared to $345.5 million for the comparable period last year, an increase of 25 percent.  Net income for the nine months was $47.2 million, or $1.85 per diluted share, compared to $29.1 million, or $1.15 per diluted share in the comparable period of last year.  The net income and earnings per diluted share for the first nine months reflect a pre-tax gain of approximately $6 million related to a partial insurance settlement for assets destroyed in a fire at one of the Company's galvanizing facilities.  While we expect to receive substantial additional insurance proceeds under the policy in the future, 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.  Pro forma earnings per diluted share exclusive of this non operational income item for the first nine months were $1.73, a 50 percent gain over the same period last year.

Backlog at the end of our third quarter was $215.8 million, which includes the favorable impact of Nuclear Logistics Incorporated's acquired backlog. Backlog at the end of the third quarter of fiscal year 2012 was $132.1 million and $138.6 million at February 29, 2012. Incoming orders for the third quarter were $152.4 million while shipments for the quarter totaled $149.7 million, resulting in a book to ship ratio of 102 percent. Of the backlog of $215.8 million, 29 percent is to be delivered outside of the U.S.

Revenues for the Electrical and Industrial Products Segment for the third quarter of fiscal 2013 were $60.4 million as compared to $43.9 million for the same quarter last year, an increase of 38 percent.  NLI, acquired June 1, 2012, contributed $16.4 million of this increase.  Operating income for the segment increased 57 percent to $9 million compared to $5.7 million in the same period last year.  Operating margins for the third quarter were 15 percent for the quarter as compared to 13 percent in the prior year period. For the first nine months of fiscal 2013, revenues increased 26 percent to $171.6 million and operating income increased 38 percent to $25.1 million compared to $136.5 million and $18.2 million respectively, in the prior year period.  Operating margin for the first nine months was 15 percent as compared to 13 percent in the prior year period.

Revenues for the Company's Galvanizing Service Segment for the third quarter were $89.3 million, compared to the $72.6 million in the same period last year, an increase of 23 percent.  Operating income was $24.4 million as compared to $18.6 million in the prior period, an increase of 32 percent. Operating margins for the third quarter were 27 percent, compared to 26 percent in the same period last year. For the nine months of fiscal 2013, revenues increased 24 percent to $258.6 million and operating income increased 30 percent to $70.6 million compared to $209 million and $54.4 million respectively, for the first nine months of the prior year.  Year to date operating margins were 27 percent compared to 26 percent in the prior year period. 

David H. Dingus, president and chief executive officer of AZZ incorporated, commented, "The third quarter and first nine months of fiscal 2013 reflects favorable year over year growth in both segments and effective identification and execution of our opportunities in a market environment of continued economic and regulatory uncertainty.  We are extremely pleased with the reported results.  We continue our effort to identify product and market expansion opportunities to further enhance our strategic position."

The company today announced that it has acquired G3 Galvanizing, a galvanizing operation in Halifax, Nova Scotia on January 2, 2013.  This acquisition is part of the stated AZZ strategy to continue the geographic expansion of its served markets that should provide a basis for continued growth of the Galvanizing Services Segment of AZZ.  G3, while relatively small in terms of production and revenue, has a rich heritage of providing superior level of service and support to the customers in Canadian Maritimes.  Operated with pride and integrity since its founding, this very successful operation will complement our existing network of North American plants.  Existing operating management has agreed to remain with the company and the acquisition is anticipated to be accretive in the first year of operation.

Based upon the evaluation of information currently available to management, we are revising our fiscal year 2013 guidance for revenues to be in the range of $575 to $585 million.  Our earnings are anticipated to be in the range of $2.35 and $2.45 per diluted share.  This guidance reflects the two-for-one-stock split effective July 30, 2012.  The previously issued guidance was for revenues to be in the range of $575 to $600 million and that fully diluted earnings per share to be in the rage of $2.25 to $2.40 after the effect of the two-for-one stock split.  Our guidance does reflect the acquisition of NLI during the last nine months of fiscal 2013 and the acquisition of Galvcast for the last five months of fiscal 2013, and G3 Galvanizing for the last two months of the fiscal 2013.

AZZ incorporated will conduct a conference call to discuss financial results for the third quarter of fiscal year 2013 at 11:00 A.M. ET on Wednesday, January 9, 2013.  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 #10022595 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 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 29, 2012 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, 2012


November 30, 2011


November 30, 2012


November 30, 2011


(unaudited)


(unaudited)


(unaudited)


(unaudited)









Net sales

$149,675


$116,493


$430,203


$345,487

Costs and Expenses:








     Cost of Sales

104,672


85,686


304,022


253,231

     Selling, General and Administrative

17,895


11,320


49,019


36,110

     Interest Expense

3,234


3,519


9,802


10,453

     Net (Gain) Loss on Sales or Insurance Settlement of Property, Plant and Equipment

157


(7)


(5,794)


164

     Other (Income)

(454)


(193)


(700)


(1,225)


$125,504


$100,325


$356,349


$298,733









Income before income taxes

24,171


16,168


73,854


46,754

Income Tax Expense

8,807


6,147


26,631


17,662

Net income

$15,364


$10,021


$47,223


$29,092

Net income per share








      Basic

$0.61


$0.40


$1.87


$1.16

      Diluted

$0.60


$0.39


$1.85


$1.15

      Diluted average shares outstanding

25,603


25,374


25,537


25,340









 

Segment Reporting

(in thousands)

 


Three Months Ended


Nine Months Ended


November 30, 2012


November 30, 2011


November 30, 2012


November 30, 2011


(unaudited)


(unaudited)


(unaudited)


(unaudited)







Net Sales:








   Electrical and Industrial Products

$60,421


$43,849


$171,633


$136,518

   Galvanizing Services

89,254


72,644


258,570


208,969


$149,675


$116,493


$430,203


$345,487









Segment Operating Income:








   Electrical and Industrial Products

$8,952


$5,719


$25,087


$18,214

   Galvanizing Services

24,449


18,555


70,631


54,431

   Total Segment Operating Income

$33,401


$24,274


$95,718


$72,645









 

Condensed Consolidated Balance Sheet

(in thousands)

 


November 30,

2012

February 29,

2012


(unaudited)

 (audited)




Assets:



      Current assets

$252,132

$302,736

      Net property, plant and equipment

$152,006

$135,827

      Other assets, net

$270,327

$168,212

      Total assets

$674,465

$606,775




Liabilities and shareholders' equity:



      Current liabilities

$109,493

$77,979

      Long term debt due after one year

$196,429

$210,714

      Other liabilities

$41,174

$30,473

      Shareholders' equity

$327,369

$287,609

Total liabilities and shareholders' equity

$674,465

$606,775







 

Condensed Consolidated Statement of Cash Flows

(in thousands)

 


Nine Months Ended


November 30,

2012

November 30,

2011


(unaudited)

(unaudited)




Net cash provided by (used in) operating activities

$66,587

$46,832

Net cash provided by (used in) investing activities

($133,602)

($16,070)

Net cash provided by (used in) financing activities

($26,807)

($9,221)

Effect of exchange rate changes on cash

$27

$168

Net increase (decrease) in cash and cash equivalents

$(93,797)

$21,709

Cash and cash equivalents at beginning of period

$143,303

$138,390

Cash and cash equivalents at end of period

$49,506

$160,099




 

SOURCE AZZ incorporated

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
Manufacturers are embracing the Industrial Internet the same way consumers are leveraging Fitbits – to improve overall health and wellness. Both can provide consistent measurement, visibility, and suggest performance improvements customized to help reach goals. Fitbit users can view real-time data and make adjustments to increase their activity. In his session at @ThingsExpo, Mark Bernardo Professional Services Leader, Americas, at GE Digital, will discuss how leveraging the Industrial Interne...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The demand for organizations to expand their infrastructure to multiple IT environments like the cloud, on-premise, mobile, bring your own device (BYOD) and the Internet of Things (IoT) continues to grow. As this hybrid infrastructure increases, the challenge to monitor the security of these systems increases in volume and complexity. In his session at 18th Cloud Expo, Stephen Coty, Chief Security Evangelist at Alert Logic, will show how properly configured and managed security architecture can...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
The IETF draft standard for M2M certificates is a security solution specifically designed for the demanding needs of IoT/M2M applications. In his session at @ThingsExpo, Brian Romansky, VP of Strategic Technology at TrustPoint Innovation, will explain how M2M certificates can efficiently enable confidentiality, integrity, and authenticity on highly constrained devices.
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.