EX-99.2 3 ex992finguidance.htm EX 99.2 FINANICAL GUIDANCE ex992finguidance.htm


Exhibit 99.2
Unaudited Financial and Other Statistical Information for the Three and Twelve-Month Periods Ended February 28, 2009, and Guidance for Fiscal Year 2010


AZZ incorporated
Condensed Consolidated Statements of Income
(unaudited)
($ in Thousands except per share amount)

   
Three Months
Ended
February 28, 2009
   
Twelve Months
Ended
 February 28, 2009
 
             
Net Sales
  $ 100,286     $ 412,364  
                 
Cost of Sales
    72,167       299,012  
                 
Selling, General and Administrative
    10,676       43,221  
Interest Expense
    1,685       6,170  
Net (Gain) Loss on Sale of Property, Plant and Equipment
    (373 )     (1,509 )
Other (Income)
    (61 )     (1,440 )
      84,094       345,454  
                 
Income Before Income Taxes and Accounting Changes
    16,192       66,910  
Income Tax Expense
    6,225       24,704  
                 
Income before cumulative effect of changes in accounting principles
  $ 9,967     $ 42,206  
                 
Cumulative effect of change in accounting principles (net of tax)
    -       -  
                 
Net Income
  $ 9,967     $ 42,206  
                 
Income Per Share:
               
   Basic
  $ .82     $ 3.48  
   Diluted
  $ .81     $ 3.43  




 
1

 

Exhibit 99.2

AZZ incorporated
Condensed Consolidated Balance Sheet
 (unaudited)
($ in Thousands)

Assets:
 
Period Ended
February 28, 2009
 
       
Current assets:
     
Cash and cash equivalents
  $ 47,558  
Accounts receivable, net of allowance for doubtful accounts
    64,764  
Inventories
    53,776  
Costs and estimated earnings in excess of billings on uncompleted contracts
    11,328  
Deferred income taxes
    3,588  
Prepaid expenses and other
    1,008  
Total current assets
    182,023  
         
Net property, plant, and equipment
    87,667  
         
Goodwill
    66,157  
         
Other Assets
    18,868  
         
    $ 354,715  
         
Liabilities and Shareholders’ Equity:
       
         
Current liabilities:
       
Accounts payable
  $ 17,853  
Accrued liabilities
    40,518  
Long-term debt due within one year
    -0-  
Total current liabilities
    58,371  
         
Long-term debt due after one year
    100,000  
         
Deferred income taxes
    9,232  
         
Shareholders’ equity
    187,112  
         
    $ 354,715  


 
2

 

Exhibit 99.2

AZZ incorporated
Condensed Consolidated Statement of Cash Flows
 (unaudited)
($ in Thousands)


   
Period Ended
February 28, 2009
 
       
Net cash provide by operating activities
  $ 60,196  
         
Net cash used in investing activities
    (112,811 )
         
Net cash provided by (used in) financing activities
    98,104  
         
Effect of exchange rate changes on cash
    (158 )
         
Net (decrease) increase in cash and cash equivalents
    45,331  
         
Cash and cash equivalents at beginning of period
    2,227  
         
Cash and cash equivalents at end of period
  $ 47,558  


 
3

 

Exhibit 99.2

AZZ incorporated
Financial and Other Statistical Information
 (unaudited)
($ in Thousands)

Information regarding operations and assets by segment is as follows:

   
Three Months
Ended
February 28, 2009
   
Twelve Months
Ended
 February 28, 2009
 
             
Net sales:
           
Electrical and Industrial Products
  $ 59,872     $ 225,797  
Galvanizing Services
    40,414       186,567  
    $ 100,286     $ 412,364  
                 
Segment operating income (a):
               
Electrical and Industrial Products
  $ 10,811     $ 38,951  
Galvanizing Services
    11,223       53,184  
    $ 22,034     $ 92,135  
                 
General corporate expenses (b)
    4,149       19,441  
Interest expense
    1,686       6,170  
Other (income) expense, net (c)
    7       (386 )
                 
Income Before Taxes
  $ 16,192     $ 66,910  
                 
                 
Total assets:
               
Electrical and Industrial Products
  $ (11,527 )   $ 159,334  
Galvanizing Services
    (5,959 )     138,826  
Corporate
    34,918       56,555  
    $ 17,432     $ 354,715  


(a) Segment operating income consists of net sales less cost of sales, specifically identifiable general and administrative expenses, specifically identifiable selling expenses and other income and expense items that are specifically identifiable to a segment.

(b) General corporate expense consists of selling, general and administrative expense that are not specifically identifiable to a segment.

(c) Other (income) expense, net includes gains and losses on sale of property, plant and equipment and other (income) expense not specifically identifiable to a segment.

 
4

 

Exhibit 99.2

AZZ incorporated
Financial and Other Statistical Information
(unaudited)
($ in Thousand except per share amount)

   
Actual
Year to Date
February 28, 2009
   
Projected
Year Ended
February 28, 2010
 
Net Sales:
           
   Electrical and Industrial Products
  $ 225,797     $ 245,000 to $255,000  
   Galvanizing Services
  $ 186,567     $ 150,000 to $160,000  
        Total Sales
  $ 412,364     $ 395,000 to $415,000  
                 
Diluted earnings per share
  $ 3.43     $ 2.75 to $2.95  
                 
Net Sales by Market Segment:
               
Power Generation
    13 %     17 %
Transmission and Distribution
    29 %     33 %
Industrial
    58 %     50 %
                 
Electrical and Industrial Products
               
Revenues by Industry:
               
  Power Generation
    18 %     22 %
  Transmission and Distribution
    46 %     48 %
  Industrial
    36 %     30 %
                 
Galvanizing Services
               
Revenues by Industry:
               
  Electrical and Telecommunications
    24 %     28 %
  OEM’s
    21 %     16 %
  Industrial
    29 %     24 %
  Bridge and Highway
    5 %     9 %
  Petro Chemical
    21 %     23 %
                 
Operating Margins:
               
   Electrical and Industrial Products
    17.2 %  
17% to 18
 %
   Galvanizing Services
    28.5 %  
24% to 25.5
 %
                 
Cash Provided By Operations
  $ 60,196     $ 75,000  
Capital Expenditures
  $ 20,008     $ 14,000  
Depreciation and Amortization of Intangible Assets and Debt Issue Cost
  $ 14,542     $ 14,600  
Total Bank Debt
  $ 100,000     $ 100,000  
                 
Percent of Business By Segment:
               
   Electrical and Industrial Products
    55 %     62 %
   Galvanizing Services
    45 %     38 %



 
5

 


Exhibit 99.2

AZZ incorporated
Financial and Other Statistical Information
(unaudited)
($ in Thousands)


   
Three Months Ended
February 28, 2009
 
Book to Ship Ratio:
     
   11/30/08 Backlog
  $ 195,200  
   Qtr. Ending 2/28/09 Bookings
    79,900  
   Qtr. Ending 2/28/09 Shipments
    100,300  
   2/28/09 Backlog
  $ 174,800  
   Book to Ship Ratio
    .80  

6