EX-99.2 3 dex992.htm UNAUDITED FINANCIAL Unaudited Financial

Exhibit 99.2

Unaudited Financial and Other Statistical Information for the Three and Nine

Month Periods Ended November 30, 2007, and Guidance for Fiscal Year 2008

AZZ incorporated

Consolidated Statements of Income

(unaudited)

 

     Three Months
Ended
November 30,2007
    Nine Months
Ended
November 30,2007
 

Net Sales

   $ 86,593,180     $ 243,576,501  

Cost of Sales

     66,369,431       182,943,181  

Selling, General and Administrative

     7,449,000       27,816,380  

Interest Expense

     341,954       1,261,297  

Net (Gain) Loss on Sale of Property, Plant and Equipment

     (33,819 )     (32,725 )

Other (Income)

     (236,639 )     (793,009 )
                
     73,889,927       211,195,124  

Income Before Income Taxes and Accounting Changes

     12,703,253       32,381,377  

Income Tax Expense

     4,611,672       12,021,508  
                

Income before cumulative effect of changes in accounting principles

   $ 8,091,581     $ 20,359,869  

Cumulative effect of change in accounting principles (net of tax)

     —         —    

Net Income

   $ 8,091,581     $ 20,359,869  
                

Income Per Share:

    

Basic

   $ .67     $ 1.70  
                

Diluted

   $ .66     $ 1.67  
                

 

1


Exhibit 99.2

AZZ incorporated

Consolidated Balance Sheet

(unaudited)

 

     Period Ended
November 30,2007

Assets:

  

Current assets:

  

Cash and cash equivalents

   $ 2,162,281

Accounts receivable, net of allowance for doubtful accounts

     50,424,314

Inventories

     45,868,855

Costs and estimated earnings in excess of billings on uncompleted contracts

     12,843,870

Deferred income taxes

     4,153,253

Prepaid expenses and other

     933,095
      

Total current assets

     116,385,668

Net property, plant, and equipment

     48,606,282

Goodwill, less accumulated amortization

     40,962,104

Other Assets

     1,245,880
      
   $ 207,199,934
      

Liabilities and Shareholders’ Equity:

  

Current liabilities:

  

Accounts payable

   $ 18,974,997

Accrued liabilities

     28,133,739

Long-term debt due within one year

     -0-
      

Total current liabilities

     47,108,736

Long-term debt due after one year

     17,000,000

Deferred income taxes

     4,434,316

Shareholders’ equity

     138,656,882
      
   $ 207,199,934
      

 

2


Exhibit 99.2

AZZ incorporated

Condensed Consolidated Statement of Cash Flows

(unaudited)

 

     Period Ended
November 30,2007
 

Net cash provide by operating activities

   $ 20,107,593  

Net cash used in investing activities

     (7,866,845 )

Net cash provided by (used in) financing activities

     (11,781,589 )
        

Net (decrease) increase in cash and cash equivalents

     459,159  

Cash and cash equivalents at beginning of period

     1,703,092  
        

Cash and cash equivalents at end of period

   $ 2,162,251  
        

 

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

November 30,2007

  

Nine Months

Ended

November 30,2007

Net sales:

     

Electrical and Industrial Products

   $ 51,455    $ 137,479

Galvanizing Services

     35,138      106,098
             
   $ 86,593    $ 243,577

Segment operating income (a):

     

Electrical and Industrial Products

   $ 8,032    $ 22,318

Galvanizing Services

     8,336      26,177
             
   $ 16,368    $ 48,495

General corporate expenses (b)

   $ 3,308    $ 14,825

Interest expense

     342      1,261

Other (income) expense, net (c)

     15      28
             
   $ 3,665    $ 16,114

Income Before Taxes

   $ 12,703    $ 32,381
             

Total assets:

     

Electrical and Industrial Products

   $ 124,196    $ 124,196

Galvanizing Services

     76,370      76,370

Corporate

     6,634      6,634
             
   $ 207,200    $ 207,200
             

 

(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 Thousand except per share amount)

 

    

Actual

Year to Date

November 30,2007

   

Projected

Year Ended

February 29, 2008

 

Net Sales:

    

Electrical and Industrial Products

   $ 137,479     $ 180,000 to $185,000  

Galvanizing Services

   $ 106,098     $ 135,000 to $140,000  
                

Total Sales

   $ 243,577     $ 315,000 to $325,000  

Diluted earnings per share

   $ 1.67     $ 2.12 to $2.22  

Total Company Revenue by Market Segment:

    

Power Generation

       13 %

Transmission and Distribution

       28 %

Industrial

       59 %

Electrical and Industrial Products

    

Revenues by Industry:

    

Power Generation

       22 %

Transmission and Distribution

       48 %

Industrial

       30 %

Galvanizing Services

    

Revenues by Industry:

    

Electrical and Telecommunications

       21 %

OEM’s

       17 %

Industrial

       19 %

Bridge and Highway

       9 %

Petro Chemical

       34 %

Operating Margins:

    

Electrical and Industrial Products

     16.2 %     16 %

Galvanizing Services

     24.7 %     24 %

Cash Provided By Operations

   $ 20,108     $ 25,000  

Capital Expenditures

   $ 8,085     $ 10,000  

Depreciation and Amortization of Intangible Assets and Debt Issue Cost

   $ 6,072     $ 8,500  

Total Bank Debt

   $ 17,000     $ 14,000  

Percent of Business By Segment:

    

Electrical and Industrial Products

     56 %     57 %

Galvanizing Services

     44 %     43 %

 

5


Exhibit 99.2

AZZ incorporated

Financial and Other Statistical Information

(unaudited)

($ in Thousand)

 

    

Quarter Ended

November 30,2007

Book to Ship Ratio:

  

8/31/07 Backlog

   $ 149,196

Qtr. Ending 11/30/07 Bookings

     84,537

Qtr. Ending 11/30/07 Shipments

     86,594

8/31/07 Backlog

   $ 147,139

Book to Ship Ratio

     .98

Outstanding Accounts Receivable Days

     49

 

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