Operating segments (Tables)

6 Months Ended

Aug. 31, 2023

Segment Reporting [Abstract]

Operations and assets by segment

Net income from continuing operations by segment for the three and six months ended August 31, 2023 and 2022 was as follows (in thousands):

	Three Months Ended August 31, 2023
	Metal Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)(3)		Total
Sales	$	169,837	$	228,705	$	—	$	—	$	398,542
Cost of sales	119,471		181,825		—		—		301,296
Gross margin	50,366		46,880		—		—		97,246
Selling, general and administrative	5,285		7,874		5,932		17,148		36,239
Operating income (loss) from continuing operations	$	45,081	$	39,006	(5,932)		(17,148)		61,007
Interest expense					—		27,770		27,770
Equity in earnings of unconsolidated subsidiaries					(974)		—		(974)
Other (income) expense					—		(88)		(88)
Income (loss) from continuing operations before income tax					$	(4,958)	(44,830)		34,299
Income tax expense							5,967		5,967
Net income (loss) from continuing operations							$	(50,797)	$	28,332

	Six Months Ended August 31, 2023
	Metal Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)(3)		Total
Sales	$	338,631	$	450,784	$	—	$	—	$	789,415
Cost of sales	237,328		357,822		—		—		595,150
Gross margin	101,303		92,962		—		—		194,265
Selling, general and administrative	10,751		16,266		5,954		34,791		67,762
Operating income (loss) from continuing operations	$	90,552	$	76,696	(5,954)		(34,791)		126,503
Interest expense					—		56,476		56,476
Equity in earnings of unconsolidated subsidiaries					(2,394)		—		(2,394)
Other (income) expense					—		(50)		(50)
Income (loss) from continuing operations before income tax					$	(3,560)	(91,217)		72,471
Income tax expense							15,617		15,617
Net income (loss) from continuing operations							$	(106,834)	$	56,854

	Three Months Ended August 31, 2022
	Metal Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)(3)		Total
Sales	$	165,849	$	240,861	$	—	$	—	$	406,710
Cost of sales	116,437		188,718		—		—		305,155
Gross margin	49,412		52,143		—		—		101,555
Selling, general and administrative	4,416		15,930		—		17,068		37,414
Operating income (loss) from continuing operations	$	44,996	$	36,213	—		(17,068)		64,141
Interest expense					—		28,144		28,144
Other (income) expense					—		55		55
Income (loss) from continuing operations before income tax					$	—	(45,267)		35,942
Income tax expense							10,822		10,822
Net income (loss) from continuing operations							$	(56,089)	$	25,120

	Six Months Ended August 31, 2022
	Metal Coatings		Precoat Metals		Infrastructure Solutions(1)		Corporate(2)(3)		Total
Sales	$	329,293	$	284,551	$	—	$	—	$	613,844
Cost of sales	230,018		222,218		—		—		452,236
Gross margin	99,275		62,333		—		—		161,608
Selling, general and administrative	9,009		19,472		—		41,077		69,558
Operating income (loss) from continuing operations	$	90,266	$	42,861	—		(41,077)		92,050
Interest expense					—		35,615		35,615
Other (income) expense					—		28		28
Income (loss) from continuing operations before income tax					$	—	(76,720)		56,407
Income tax expense							15,922		15,922
Net income (loss) from continuing operations							$	(92,642)	$	40,485
(1) Infrastructure Solutions segment includes the Company’s equity in (earnings) loss from its investment in the AVAIL JV, as well as other expenses related to receivables and liabilities that were retained by the Company following the sale of the AIS business. See Note 16 for a description of a legal settlement recognized during the three months ended August 31, 2023 related to AIS business.
(2) Interest expense, Other (income) expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(3) For fiscal year 2024, amortization expense for acquired intangible assets is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments.

Reconciliation of Assets from Segment to Consolidated

Asset balances by operating segment for each period were as follows (in thousands):

	As of
	August 31, 2023		February 28, 2023
Assets:
Metal Coatings	$	575,330	$	588,337
Precoat Metals	1,504,940		1,488,810
Infrastructure Solutions - Investment in Joint Venture	85,535		84,760
Corporate	48,756		59,572
Total assets	$	2,214,561	$	2,221,479

Revenue from External Customers by Geographic Areas

Financial information about geographical areas for the periods presented was as follows (in thousands):

	Three Months Ended August 31,				Six Months Ended August 31,
	2023		2022		2023		2022
Sales:
United States	$	388,538	$	393,835	$	769,860	$	588,195
Canada	10,004		12,875		19,555		25,649
Total	$	398,542	$	406,710	$	789,415	$	613,844

Long-lived Assets by Geographic Areas

	As of
	August 31, 2023		February 28, 2023
Property, plant and equipment, net:
United States	$	496,972	$	478,722
Canada	19,527		19,781
Total	$	516,499	$	498,503