EX-99.2 4 ex992guidance.htm AZZ FY10 FINANCIAL GUIDANCE ex992guidance.htm


 
Exhibit 99.2
Unaudited Financial and Other Statistical Information for the Three Month Period Ended May 31, 2009, and Guidance for Fiscal Year 2010


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

   
Three Months Ended
May 31, 2009
   
Three Months Ended
May 31, 2008
 
             
Net Sales
  $ 95,492     $ 99,958  
                 
Cost of Sales
    65,804       73,689  
                 
Selling, General and Administrative
    12,124       9,857  
Interest Expense
    1,687       1,121  
Net (Gain) Loss on Sale of Property, Plant and Equipment
    (5 )     (3 )
Other (Income)
    (81 )     (484 )
      79,528       84,186  
                 
Income Before Income Taxes and Accounting Changes
    15,964       15,773  
Income Tax Expense
    6,064       5,650  
                 
                 
Net Income
  $ 9,900     $ 10,123  
                 
Income Per Share:
               
   Basic
  $ .81     $ .83  
   Diluted
  $ .80     $ .82  
   




 
1

 

Exhibit 99.2

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

Assets:
 
Period Ended May 31, 2009
 
       
Current assets:
     
Cash and cash equivalents
  $ 57,689  
Accounts receivable, net of allowance for doubtful accounts
    58,731  
Inventories
    49,986  
Costs and estimated earnings in excess of billings on uncompleted contracts
    12,022  
Deferred income taxes
    4,327  
Prepaid expenses and other
    3,183  
Total current assets
    185,938  
         
Net property, plant, and equipment
    87,962  
         
Goodwill
    67,682  
         
Other Assets
    18,483  
         
    $ 360,065  
         
Liabilities and Shareholders’ Equity:
       
         
Current liabilities:
       
Accounts payable
  $ 16,464  
Accrued liabilities
    32,773  
Long-term debt due within one year
    -0-  
Total current liabilities
    49,237  
         
Long-term debt due after one year
    100,000  
         
Deferred income taxes
    10,140  
         
         
Shareholders’ equity
    200,688  
         
    $ 360,065  
 
 
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Exhibit 99.2

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


   
Period Ended May 31, 2009
 
       
Net cash provide by operating activities
  $ 13,740  
         
Net cash used in investing activities
    (3,700 )
         
Net cash provided by (used in) financing activities
    66  
         
Effect of exchange rate changes on cash
    26  
         
Net (decrease) increase in cash and cash equivalents
    10,131  
         
Cash and cash equivalents at beginning of period
    47,558  
         
Cash and cash equivalents at end of period
  $ 57,689  


 
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
May 31, 2009
   
Three Months Ended
 May 31, 2008
 
             
Net sales:
           
Electrical and Industrial Products
  $ 55,386     $ 52,006  
Galvanizing Services
    40,106       47,952  
    $ 95,492     $ 99,958  
                 
Segment operating income (a):
               
Electrical and Industrial Products
  $ 10,512     $ 7,932  
Galvanizing Services
    12,793       13,358  
    $ 23,305     $ 21,290  
                 
General corporate expenses (b)
    5,684       4,558  
Interest expense
    1,687       1,121  
Other (income) expense, net (c)
    (30 )     (162 )
    $ 7,341     $ 5,517  
                 
Income Before Taxes
  $ 15,964     $ 15,773  
                 
                 
Total assets:
               
Electrical and Industrial Products
    159,785     $ 135,565  
Galvanizing Services
    133,998       154,341  
Corporate
    66,282       23,868  
    $ 360,065     $ 313,774  

(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.
 
 
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Exhibit 99.2

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

   
Actual
Year to Date
May 31, 2009
   
Projected
Year Ended
February 28, 2010
 
Net Sales:
           
   Electrical and Industrial Products
  $ 55,386     $ 220,000 to $230,000  
   Galvanizing Services
  $ 40,106     $ 150,000 to $160,000  
        Total Sales
  $ 95,492     $ 370,000 to $390,000  
                 
Diluted earnings per share
  $ .80     $ 2.70 to $2.90  
                 
Net Sales by Market Segment:
               
Power Generation
            18 %
Transmission and Distribution
            37 %
Industrial
            45 %
                 
Electrical and Industrial Products
               
Revenues by Industry:
               
  Power Generation
            22 %
  Transmission and Distribution
            49 %
  Industrial
            29 %
                 
Galvanizing Services
               
Revenues by Industry:
               
  Electrical and Telecommunications
            28 %
  OEM’s
            16 %
  Industrial
            27 %
  Bridge and Highway
            9 %
  Petro Chemical
            20 %
                 
Operating Margins:
               
   Electrical and Industrial Products
    19.0 %  
16% to 18%
 
   Galvanizing Services
    31.9 %  
25% to 27%
 
                 
Cash Provided By Operations
  $ 13,740     $ 75,000  
Capital Expenditures
  $ 3,709     $ 14,000  
Depreciation and Amortization of
   Intangible Assets and Debt Issue Cost
  $ 4,153     $ 14,600  
Total Bank Debt
  $ 100,000     $ 100,000  
                 
Percent of Business By Segment:
               
   Electrical and Industrial Products
    58 %     58 %
   Galvanizing Services
    42 %     42 %
   


5



Exhibit 99.2

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


   
Three Months Ended
May 31, 2009
 
Book to Ship Ratio:
     
   2/28/08 Backlog
  $ 174,831  
   Qtr. Ending 5/31/09 Bookings
    70,719  
   Qtr. Ending 5/31/09 Shipments
    95,492  
   5/31/09 Backlog
  $ 150,058  
   Book to Ship Ratio
    .74  
         

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