EX-99.2 4 ex992fy11guidance.htm Q1 FY11 GUIDANCE ex992fy11guidance.htm


Exhibit 99.2
Unaudited Financial and Other Statistical Information for the Three Month Period Ended May 31, 2010, and Guidance for Fiscal Year 2011


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

   
Three Months Ended
May 31, 2010
   
Three Months Ended
May 31, 2009
 
             
Net Sales
  $ 77,475     $ 95,492  
                 
Cost of Sales
    53,911       65,804  
                 
Selling, General and Administrative
    12,274       12,124  
Interest Expense
    1,691       1,687  
Net (Gain) Loss on Sale of Property, Plant and Equipment
    (9 )     (5 )
Other (Income)
    (364 )     (81 )
      67,503       79,528  
                 
Income Before Income Taxes and Accounting Changes
    9,971       15,964  
Income Tax Expense
    3,598       6,064  
                 
                 
Net Income
  6,373     $ 9,900  
                 
Income Per Share:
               
   Basic
  $ .51     $ .81  
   Diluted
  $ .51     $ .80  
   




 
1

 

Exhibit 99.2

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

Assets:
 
Period Ended
May 31, 2010
 
       
Current assets:
     
Cash and cash equivalents
  $ 110,166  
Accounts receivable, net of allowance for doubtful accounts
    39,498  
Inventories
    44,036  
Costs and estimated earnings in excess of billings on uncompleted contracts
    11,374  
Deferred income taxes
    5,723  
Prepaid expenses and other
    3,641  
Total current assets
    214,438  
         
Net property, plant, and equipment
    85,428  
         
Goodwill
    69,491  
         
Other Assets
    17,382  
         
    $ 386,739  
         
Liabilities and Shareholders’ Equity:
       
         
Current liabilities:
       
Accounts payable
  $ 15,627  
Accrued liabilities
    27,872  
Long-term debt due within one year
    -0-  
Total current liabilities
    43,499  
         
Long-term debt due after one year
    100,000  
         
Deferred income taxes
    10,031  
         
         
Shareholders’ equity
    233,209  
         
    $ 386,739  

 
 
2

 
 
Exhibit 99.2

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


   
Period Ended
May 31, 2010
 
       
Net cash provide by operating activities
  $ 4,169  
         
Net cash used in investing activities
    (2,125 )
         
Net cash provided by (used in) financing activities
    (2,469 )
         
Effect of exchange rate changes on cash
    (15 )
         
Net (decrease) increase in cash and cash equivalents
    (441 )
         
Cash and cash equivalents at beginning of period
    110,607  
         
Cash and cash equivalents at end of period
  $ 110,166  


 
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, 2010
   
Three Months
Ended
 May 31, 2009
 
             
Net sales:
           
Electrical and Industrial Products
  $ 37,161     $ 55,386  
Galvanizing Services
    40,314       40,106  
    $ 77,475     $ 95,492  
                 
Segment operating income (a):
               
Electrical and Industrial Products
  $ 6,610     $ 10,512  
Galvanizing Services
    11,473       12,793  
    $ 18,083     $ 23,305  
                 
General corporate expenses (b)
    6,452       5,684  
Interest expense
    1,691       1,687  
Other (income) expense, net (c)
    (31 )     (30 )
    $ 8,112     $ 7,341  
                 
Income Before Taxes
  $ 9,971     $ 15,964  
                 
                 
Total assets:
               
Electrical and Industrial Products
    120,591       159,785  
Galvanizing Services
    142,319       133,998  
Corporate
    123,829       66,282  
    $ 386,739     $ 360,065  

(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.  It includes $1.2 million of acquisition costs for the three month period ending May 31, 2010.

(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
May 31, 2010
   
Projected
Year Ended
February 28, 2011
 
Net Sales:
           
   Electrical and Industrial Products
  $ 37,161     $ 158,000 to $165,000  
   Galvanizing Services
    40,314     $ 222,000 to $230,000  
        Total Sales
  $ 77,475     $ 380,000 to $395,000  
                 
Diluted earnings per share
  $ .51     $ 2.65 to $2.80  
                 
Net Sales by Market Segment:
               
  Power Generation
            17.5 %
  Transmission and Distribution
            27.0 %
  Industrial
            55.5 %
                 
Electrical and Industrial Products
               
Revenues by Industry:
               
  Power Generation
            21 %
  Transmission and Distribution
            44 %
  Industrial
            35 %
                 
Galvanizing Services
               
Revenues by Industry:
               
  Electrical and Telecommunications
            30 %
  OEM’s
            11 %
  Industrial
            32 %
  Bridge and Highway
            9 %
  Petro Chemical
            18 %
                 
Operating Margins:
               
   Electrical and Industrial Products
    17.8 %  
15% to 15.5
   Galvanizing Services
    28.5 %  
24% to 25.0
                 
Cash Provided By Operations
  $ 4,200     $ 49,000  
Capital Expenditures
  $ 2,300     $ 20,000  
Depreciation and Amortization of Intangible Assets and Debt Issue Cost
          $ 20,000  
Total Bank Debt
  $ 100,000     $ 100,000  
                 
Cash Dividend
  $ 3,100     $ 12,400  
                 
Percent of Business By Segment:
               
   Electrical and Industrial Products
    48 %     42 %
   Galvanizing Services
    52 %     58 %
   


 
5

 


Exhibit 99.2

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


   
Three Months Ended
May 31, 2010
 
Book to Ship Ratio:
     
   2/28/10 Backlog
  $ 109,918  
   Qtr. Ending 5/31/09 Bookings
    78,603  
   Qtr. Ending 5/31/09 Shipments
    77,475  
   5/31/09 Backlog
  $ 111,046  
   Book to Ship Ratio
    1.01  
         




 
6