Operating Segments

12 Months Ended

Feb. 28, 2023

Segment Reporting [Abstract]

Operating Segments

Segment Information

The Company’s Chief Executive Officer, who is the chief operating decision maker ("CODM"), reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. Sales and operating income (loss) are the primary measures used by the CODM to evaluate segment operating performance and to allocate resources to segments. Expenses related to certain centralized administration or executive functions that are not specifically related to an operating segment are included in Corporate. As presented in Note 6, the AIS joint venture operating results for the period prior to deconsolidation are included within discontinued operations, with the exception of AZZ Crowley Tubing, which was retained by the Company and merged into the AZZ Metal Coatings segment. See Note 6 for the results of operations related to the AZZ Infrastructure Solutions segment.

A summary of each of the Company's operating segments is as follows:

AZZ Metal Coatings — provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. Hot-dip galvanizing is a metallurgical process in which molten zinc reacts to steel. The zinc alloying provides corrosion protection and extends the life-cycle of fabricated steel for several decades.

AZZ Precoat Metals — engages in the advanced application of protective and decorative coatings and related value-added services for steel and aluminum coil primarily serving the construction; appliance; heating, ventilation and air conditioning (HVAC); container; transportation and other end markets.

AZZ Infrastructure Solutions — provides specialized products and services designed to support primarily industrial and electrical applications. The product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting and tubular products. The Infrastructure Solutions segment also focuses on life-cycle extension for the power generation, refining and industrial infrastructure, through providing automated weld overlay solutions for corrosion and erosion mitigation. Fiscal 2021 includes eight months of financial results from AZZ SMS through October 26, 2020, when it was divested.

The following tables show information by reportable segment for fiscal years 2023, 2022 and 2021 (in thousands):

	Year Ended February 28,
	2023		2022		2021
Sales:
Metal Coatings	$	636,982	$	525,598	$	461,693
Precoat Metals	686,667		—		—
Infrastructure Solutions	—		—		18,881
Total sales	$	1,323,649	$	525,598	$	480,574
Operating income (loss):
Metal Coatings	$	155,953	$	128,758	$	92,778
Precoat Metals	79,509		—		—
Infrastructure Solutions	—		—		(4,482)
Corporate	(61,824)		(49,539)		(40,819)
Total operating income	$	173,638	$	79,219	$	47,477

	Year Ended February 28,
	2023		2022		2021
Depreciation and amortization:
Metal Coatings	$	32,955	$	30,453	$	30,273
Precoat Metals	40,199		—		—
Infrastructure Solutions	—		—		127
Corporate	1,436		1,628		1,694
Total	$	74,590	$	32,081	$	32,094

	Year Ended February 28,
	2023		2022		2021
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Metal Coatings	$	23,639	$	82,736	$	29,024
Precoat Metals	1,315,414		—		—
Corporate	797		2,073		2,574
Total	$	1,339,850	$	84,809	$	31,598

Asset information by segment was as follows as of February 28, 2023 and February 28, 2022 (in thousands):

	February 28,
	2023		2022
Assets:
Metal Coatings	$	588,337	$	578,885
Precoat Metals	1,488,810		—
Infrastructure Solutions - Investment in Joint Venture	84,760		—
Corporate	59,572		46,266
Discontinued Operations:
Infrastructure Solutions	—		507,876
Total assets	$	2,221,479	$	1,133,027

Financial Information About Geographical Areas

Financial information about geographical areas for the periods presented was as follows for fiscal years 2023, 2022 and 2021 (in thousands):

	Year Ended February 28,
	2023		2022		2021
Sales:
United States	$	1,279,890	$	494,012	$	450,904
Canada	43,759		31,586		29,670
Total	$	1,323,649	$	525,598	$	480,574

 

	February 28,
	2023		2022
Property, plant and equipment, net:
United States	$	478,722	$	167,634
Canada	19,781		25,724
Total	$	498,503	$	193,358