EX-99.2 4 ex992azzguidance.htm AZZ Q2 GUIDANCE ex992azzguidance.htm




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


AZZ incorporated
Consolidated Statements of Income
(unaudited)

   
Three Months Ended
August 31, 2010
   
Six Months Ended
August 31, 2010
 
             
Net Sales
  $ 99,591,069     $ 177,065,615  
                 
Cost of Sales
    70,538,383       124,449,456  
                 
Selling, General and Administrative
    12,230,450       24,504,785  
Interest Expense
    1,768,129       3,459,244  
Net (Gain) Loss on Sale of Property, Plant and Equipment and Insurance Proceeds
    (47,688 )     (57,118 )
Other (Income) Expense, Net
    (396,462 )     (760,412 )
      84,092,812       151,595,955  
                 
Income Before Income Taxes
    15,498,257       25,469,660  
Income Tax Expense
    5,851,502       9,449,416  
                 
                 
Net Income
  $ 9,646,755     $ 16,020,244  
                 
Income Per Share:
               
   Basic
  $ .77     $ 1.29  
   Diluted
  $ .77     $ 1.27  
   




 
1

 

Exhibit 99.2

AZZ incorporated
Consolidated Balance Sheet
 (unaudited)

Assets:
 
Period Ended
August 31, 2010
 
       
Current assets:
     
Cash and cash equivalents
  $ 8,836,398  
Accounts receivable
    55,863,551  
Allowance for doubtful accounts
 
(747,439
)
Inventories
    52,853,927  
Costs and estimated earnings in excess of billings on uncompleted contracts
    11,030,912  
Deferred income taxes
    7,675,579  
Prepaid expenses and other receivables
    16,531,700  
Total current assets
    152,044,628  
         
Net property, plant, and equipment
    124,372,383  
         
Goodwill, less accumulated amortization
    112,505,842  
         
Intangibles and Other Assets
    44,363,914  
         
    $ 433,286,767  
         
Liabilities and Shareholders’ Equity:
       
         
Current liabilities:
       
Accounts payable
  $ 18,065,343  
Accrued liabilities
    31,358,039  
Total current liabilities
    49,423,382  
         
Long-term debt due after one year
    112,000,000  
         
Deferred income taxes
    31,260,094  
         
         
Shareholders’ equity
    240,603,291  
         
    $ 433,286,767  


 
2

 

Exhibit 99.2

AZZ incorporated
Condensed Consolidated Statement of Cash Flows
 (unaudited)


   
Period Ended
August 31, 2010
 
       
Net cash provide by operating activities
  $ 8,013,481  
         
Net cash used in investing activities
    (109,403,308 )
         
Net cash provided by (used in) financing activities
    (407,861 )
         
Effect of exchange rate changes on cash     27,057  
         
Net (decrease) increase in cash and cash equivalents
    (101,770,631 )
         
Cash and cash equivalents at beginning of period
    110,607,029  
         
Cash and cash equivalents at end of period
  $ 8,836,398  


 
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
August 31, 2010
   
Six Months Ended
August 31, 2010
 
Net sales:
           
Electrical and Industrial Products
  $ 40,768     $ 77,929  
Galvanizing Services
    58,823       99,137  
      99,591       177,066  
                 
Segment operating income (a):
               
Electrical and Industrial Products
    7,538       14,148  
Galvanizing Services
    15,241       26,715  
      22,779       40,863  
                 
General corporate expenses (b)
    5,515       11,967  
Interest expense
    1,768       3,459  
Other (income) expense, net (c)
    (2 )     (33 )
      7,281       15,393  
                 
Income Before Taxes
  $ 15,498     $ 25,470  
                 
                 
Total assets:
               
Electrical and Industrial Products
  $ 123,866     $ 123,866  
Galvanizing Services
    271,847       271,847  
Corporate
    37,574       37,574  
    $ 433,287     $ 433,287  


(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 Thousands except per share amount)

   
Actual
Year to Date
August 31, 2010
   
Projected
Year Ended
February 28, 2011
 
Net Sales:
           
   Electrical and Industrial Products
  $ 77,929     $ 163,000 to $168,000  
   Galvanizing Services
  $ 99,137     $ 222,000 to $227,000  
        Total Sales
  $ 177,066     $ 385,000 to $395,000  
                 
Diluted earnings per share
  $ 1.27     $ 2.70 to $2.85  
                 
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
    18.2 %  
15% to 17
   Galvanizing Services
    27.0 %  
25% to 26
%
                 
Cash Provided By (Used In)Operations
  $ 8,000     $ 40,000  
Capital Expenditures
  $ 5,500     $ 20,000  
Depreciation and Amortization of Intangible Assets and Debt Issue Cost
  $ 10,300     $ 20,000  
Total Bank Debt
  $ 112,000     $ 100,000  
                 
Cash Dividend
  $ 6,200     $ 12,400  
                 
Percent of Business By Segment:
               
   Electrical and Industrial Products
    44 %     43 %
   Galvanizing Services
    56 %     57 %
   



 
5

 

Exhibit 99.2


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


 
Period Ended
     
Backlog
2/28/10
  $ 109,918  
Bookings
      78,603  
Shipments
      77,475  
Backlog
5/31/10
  $ 111,046  
Book to Ship Ratio
      1.01  
Bookings
      95,033  
Shipments
      99,591  
Backlog
8/31/10
  $ 106,488  
Book to Ship Ratio
      .95  


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