AZZ Delivers Growth in Sales, Profits, and
Cash Flow Supporting Debt Pay Down
Narrowing Annual
Guidance
FORT
WORTH, Texas, Jan. 9, 2024
/PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the leading
independent provider of hot-dip galvanizing and coil coating
solutions, today announced financial results for the third quarter
ended November 30, 2023.
Third
Quarter Overview (results from
continuing operations as compared to prior
year(1)):
- Total Sales $381.6 million, up
2.2%
- Metal Coatings sales of $163.2
million, up 3.1%
- Precoat Metals sales of $218.4
million, up 1.6%
- Diluted EPS of $0.92, up 55.9%
versus prior year, Adjusted EPS of $1.19, up 52.6%
- Net Income of $26.9 million, up
45.8%
- Adjusted net income of $34.8
million, up 78.3%
- Adjusted EBITDA $86.4 million or
22.6% of sales, versus prior year of $68.9
million or 18.5% of sales
- Segment EBITDA margin of 30.0% for Metal Coatings and 18.4% for
Precoat Metals
- Reduced debt by $25.0 million in
the quarter, resulting in net leverage of 3.1x
(1) Adjusted Net Income, Adjusted
EPS, and Adjusted EBITDA are non-GAAP financial measures as defined
and reconciled in the tables below.
|
Tom Ferguson, President, and
Chief Executive Officer of AZZ, commented, "Both segments performed
well in the third quarter, delivering organic sales growth of 3.1%
for Metal Coatings and 1.6% for Precoat Metals. Consolidated
Adjusted EBITDA margin grew to 22.6%, driven by a favorable mix and
a continuation of improvements in operational efficiencies over the
prior year. Metal Coatings benefited from strength in
transmission and distribution, as well as bridge and highway
markets spending, and delivered an EBITDA margin of 30.0%.
Precoat Metals' EBITDA margin of 18.4%, significantly improved over
prior year, resulted from strong conversion-selling and value
pricing to offset inflation, with a backdrop of certain end-market
softness related to the construction, HVAC and transportation
markets."
"With our strong cash flow generation and effective management
of working capital, we have reduced our debt by $85 million year-to-date, including $25 million in the third quarter. Our greenfield
plant construction in Washington,
Missouri, is progressing, and we
are continuing to track to our timeline and budget. This year's
capital expenditures of approximately $119
million include about $70
million of spending related to the new plant.
Additionally, we recently repriced the terms of our Senior Secured
Revolver Credit Agreement, resulting in lower interest costs moving
forward. We are strengthening our balance sheet and remain
committed to reducing our debt and leverage."
"While the fourth quarter typically represents a seasonally
slower period for AZZ, we anticipate meaningfully improved
profitability over prior year same quarter. Secular tailwinds
exist for non-building construction on infrastructure and
renewables projects, reshoring of manufacturing, and continued
migration to more environmentally friendly pre-painted steel and
aluminum. I want to thank our AZZ team for their dedicated
performance in the third quarter of fiscal year 2024," Ferguson
concluded.
Fiscal Year 2024 Third Quarter Segment Performance
AZZ Metal Coatings
Sales increased
year-over-year by 3.1% to $163.2
million, due to the progression of infrastructure spending
and value-pricing strategies. Adjusted EBITDA of $49.0 million, or 30.0% of sales, reflects
results within our 25-30% targeted Adjusted EBITDA
range.
AZZ Precoat Metals
Sales of $218.4 million increased year-over-year by 1.6%
despite lower volume in HVAC, transportation, and container
end markets. Average selling price increased 4% compared to
the same quarter last year, driven by value-pricing initiatives and
a shift in sales mix. EBITDA of $40.3
million, or 18.4% of sales, increased 240 basis points
from the prior year quarter and within our targeted range of
17-22%.
Balance Sheet, Liquidity and Capital Allocation
The
Company generated significant operating cash of $180.9 million for the year's first nine months
through improved earnings and disciplined working capital
management. At the end of the third quarter, net leverage was
3.1x TTM EBITDA. During the year-to-date period ended
November 30, 2023, the Company paid down debt of $85 million and returned cash to common
shareholders through cash dividend payments totaling $12.8 million. Capital expenditures were
$66.9 million year-to-date, and full
fiscal year capital expenditures are expected to be approximately
$119 million.
Financial Outlook - Fiscal Year 2024
Guidance
Narrowing and revising upward fiscal year 2024
guidance to reflect AZZ's nine-month actual results and fourth
quarter projections. Guidance includes estimated interest
expense benefits from the repricing of our Term Loan B and the
December repricing of our Senior Secured Revolver, and the
reduction of another $25 million in
debt in the third quarter, as well as Equity in earnings of
unconsolidated subsidiaries (40% AVAIL investment). These actions
have helped offset the impact of the higher interest rate
environment. The computation of Adjusted earnings per diluted share
also reflects the impact of the Series A Preferred stock and an
effective tax rate of approximately 24% for the year.
|
Previous
FY24
Guidance
|
|
Revised
FY24
Guidance
|
Sales
|
$1.40 - $1.55
billion
|
|
$1.45 - $1.55
billion
|
Adjusted
EBITDA
|
$300 - $325
million
|
|
$315 - $335
million
|
Adjusted Diluted
EPS
|
$3.85 -
$4.35
|
|
$4.15 -
$4.35
|
Conference Call Details
AZZ Inc. will conduct a live
conference call with Tom Ferguson,
Chief Executive Officer, Philip
Schlom, Chief Financial Officer, and David Nark, Senior Vice
President of Marketing, Communications, and Investor Relations to
discuss financial results for the third quarter of the fiscal year
2024, Wednesday, January 10, 2024, at 11:00 A.M. ET. Interested parties can access the
conference call by dialing (844) 855-9499 or (412) 317-5497
(international). A webcast of the call will be available on the
Company's Investor Relations page at
http://www.azz.com/investor-relations.
A replay of the call will be available at (877) 344-7529 or
(412) 317-0088 (international), replay access code: 8388037,
through January 17, 2024, or by visiting
http://www.azz.com/investor-relations for the next 12 months.
About AZZ Inc.
AZZ Inc. is the leading independent provider of hot-dip
galvanizing and coil coating solutions to a broad range of
end-markets. Collectively, our business segments provide
sustainable, unmatched metal coating solutions that enhance the
longevity and appearance of buildings, products and infrastructure
that are essential to everyday life.
Safe Harbor Statement
Certain statements herein about our expectations of future
events or results constitute forward-looking statements for
purposes of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. You can identify forward-looking
statements by terminology such as "may," "could," "should,"
"expects," "plans," "will," "might," "would," "projects,"
"currently," "intends," "outlook," "forecasts," "targets,"
"anticipates," "believes," "estimates," "predicts," "potential,"
"continue," or the negative of these terms or other comparable
terminology. Such forward-looking statements are based on currently
available competitive, financial, and economic data and
management's views and assumptions regarding future events. Such
forward-looking statements are inherently uncertain, and investors
must recognize that actual results may differ from those expressed
or implied in the forward-looking statements. Forward-looking
statements speak only as of the date they are made and are subject
to risks that could cause them to differ materially from actual
results. Certain factors could affect the outcome of the matters
described herein. This press release may contain
forward-looking statements that involve risks and uncertainties
including, but not limited to, changes in customer demand for our
products and services, including demand by the construction
markets, the industrial markets, and the metal coatings markets. We
could also experience additional increases in labor costs,
components and raw materials including zinc and natural gas, which
are used in our hot-dip galvanizing process; supply-chain vendor
delays; customer requested delays of our products or services;
delays in additional acquisition opportunities; an increase in our
debt leverage and/or interest rates on our debt, of which a
significant portion is tied to variable interest rates;
availability of experienced management and employees to implement
AZZ's growth strategy; a downturn in market conditions in any
industry relating to the products we inventory or sell or the
services that we provide; economic volatility, including a
prolonged economic downturn or macroeconomic conditions such as
inflation or changes in the political stability in the United States and other foreign markets in
which we operate; acts of war or terrorism inside the United States or abroad; and other changes
in economic and financial conditions. AZZ has provided additional
information regarding risks associated with the business, including
in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form
10-K for the fiscal year ended February
28, 2023, and other filings with the SEC, available for
viewing on AZZ's website at www.azz.com and on the SEC's website at
www.sec.gov. You are urged to consider these factors
carefully when evaluating the forward-looking statements herein and
are cautioned not to place undue reliance on such forward-looking
statements, which are qualified in their entirety by this
cautionary statement. These statements are based on information as
of the date hereof and AZZ assumes no obligation to update any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Company Contact:
David Nark, Senior Vice President of
Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy
Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
AZZ
Inc.
|
Condensed
Consolidated Statements of Income
|
(dollars in thousands,
except per share data)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
November 30,
|
|
Nine Months
Ended
November 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales
|
|
$
381,605
|
|
$
373,301
|
|
$ 1,171,020
|
|
$
987,145
|
Cost of
sales
|
|
293,456
|
|
300,219
|
|
888,606
|
|
752,455
|
Gross
margin
|
|
88,149
|
|
73,082
|
|
282,414
|
|
234,690
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
|
35,325
|
|
27,689
|
|
103,087
|
|
97,247
|
Operating
income
|
|
52,824
|
|
45,393
|
|
179,327
|
|
137,443
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
25,855
|
|
26,123
|
|
82,331
|
|
61,739
|
Equity in earnings of
unconsolidated subsidiaries
|
|
(8,742)
|
|
(1,006)
|
|
(11,136)
|
|
(1,006)
|
Other (income) expense,
net
|
|
41
|
|
(610)
|
|
(9)
|
|
(582)
|
Income from continuing
operations before income taxes
|
|
35,670
|
|
20,886
|
|
108,141
|
|
77,292
|
Income tax
expense
|
|
8,780
|
|
2,447
|
|
24,397
|
|
18,380
|
Net income from
continuing operations
|
|
26,890
|
|
18,439
|
|
83,744
|
|
58,912
|
Income from
discontinued operations, net of tax
|
|
—
|
|
1,665
|
|
—
|
|
17,126
|
Loss on disposal of
discontinued operations, net of tax
|
|
—
|
|
(40,646)
|
|
—
|
|
(130,073)
|
Net loss from
discontinued operations
|
|
—
|
|
(38,981)
|
|
—
|
|
(112,947)
|
Net income
(loss)
|
|
26,890
|
|
(20,542)
|
|
83,744
|
|
(54,035)
|
Dividends on preferred
stock
|
|
(3,600)
|
|
(3,600)
|
|
(10,800)
|
|
(4,640)
|
Net income (loss)
available to common shareholders
|
|
$
23,290
|
|
$
(24,142)
|
|
$
72,944
|
|
$
(58,675)
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Earnings per common
share from continuing operations
|
|
$
0.93
|
|
$
0.60
|
|
$
2.91
|
|
$
2.19
|
Loss per common share
from discontinued operations
|
|
$
—
|
|
$
(1.57)
|
|
$
—
|
|
$
(4.55)
|
Earnings (loss) per
common share
|
|
$
0.93
|
|
$
(0.97)
|
|
$
2.91
|
|
$
(2.37)
|
Diluted earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Earnings per common
share from continuing operations
|
|
$
0.92
|
|
$
0.59
|
|
$
2.86
|
|
$
2.17
|
Loss per common share
from discontinued operations
|
|
$
—
|
|
$
(1.56)
|
|
$
—
|
|
$
(4.52)
|
Earnings (loss) per
common share
|
|
$
0.92
|
|
$
(0.97)
|
|
$
2.86
|
|
$
(2.35)
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding - Basic
|
|
25,077
|
|
24,867
|
|
25,024
|
|
24,804
|
Weighted average
shares outstanding - Diluted
|
|
29,330
|
|
24,995
|
|
29,278
|
|
24,984
|
AZZ
Inc.
|
Segment
Reporting
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
November 30,
|
|
Nine Months
Ended
November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Sales:
|
|
|
|
|
|
|
|
Metal
Coatings
|
$
163,186
|
|
$
158,274
|
|
$
501,816
|
|
$
487,567
|
Precoat
Metals
|
218,419
|
|
215,027
|
|
669,204
|
|
499,578
|
Total sales
|
$
381,605
|
|
$
373,301
|
|
$ 1,171,020
|
|
$
987,145
|
|
|
|
|
|
|
|
|
EBITDA(1)
|
|
|
|
|
|
|
|
Metal
Coatings(2)
|
$
48,991
|
|
$
41,895
|
|
$
152,500
|
|
$
148,591
|
Precoat
Metals
|
40,253
|
|
34,434
|
|
129,856
|
|
93,846
|
Infrastructure
Solutions(3)
|
8,452
|
|
1,006
|
|
10,642
|
|
1,006
|
Total Segment
EBITDA(4)
|
$
97,696
|
|
$
77,335
|
|
$
292,998
|
|
$
243,443
|
|
|
|
|
|
|
(1)
|
See the Non-GAAP
disclosure section below for a reconciliation between the various
measures calculated in accordance with
GAAP to the non-GAAP
financial measures.
|
(2)
|
Represents Adjusted
EBITDA, which includes an accrual for a litigation matter related
to the Metal Coatings segment.
|
(3)
|
Represents Adjusted
EBITDA, which includes a settlement for a litigation matter related
to the AIS segment recognized during the second quarter of fiscal year 2024. Infrastructure
Solutions segment includes the Company's equity in earnings from
its investment in the
AVAIL joint venture, as well as other expenses related to
receivables that were retained by the Company following the sale of the AIS business.
|
(4)
|
Total segment EBITDA
excludes Corporate EBITDA.
|
AZZ
Inc.
|
Condensed
Consolidated Balance Sheets
|
(dollars in
thousands)
|
(unaudited)
|
|
|
As of
|
|
|
November 30,
2023
|
|
February 28,
2023
|
Assets:
|
|
|
|
|
Current
assets
|
|
$
392,728
|
|
$
417,416
|
Property, plant and
equipment, net
|
|
525,338
|
|
498,503
|
Other assets,
net
|
|
1,290,690
|
|
1,305,560
|
Total assets
|
|
$
2,208,756
|
|
$
2,221,479
|
|
|
|
|
|
Liabilities and
Shareholders' Equity:
|
|
|
|
|
Current
liabilities
|
|
$
200,000
|
|
$
187,240
|
Long-term debt,
net
|
|
980,004
|
|
1,058,120
|
Other
liabilities
|
|
107,602
|
|
122,659
|
Shareholders'
Equity
|
|
921,150
|
|
853,460
|
Total liabilities and
shareholders' equity
|
|
$
2,208,756
|
|
$
2,221,479
|
AZZ
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
Nine Months Ended
November 30,
|
|
|
2023
|
|
2022
|
Net cash provided by
operating activities of continuing operations
|
|
$
180,928
|
|
$
68,622
|
Net cash used in
investing activities of continuing operations
|
|
(66,853)
|
|
(1,207,653)
|
Net cash provided by
(used in) financing activities of continuing operations
|
|
(109,444)
|
|
1,005,456
|
Cash used in
discontinued operations
|
|
—
|
|
123,982
|
Effect of exchange rate
changes on cash
|
|
58
|
|
(2,199)
|
Net increase in cash
and cash equivalents
|
|
4,689
|
|
(11,792)
|
Cash and cash
equivalents at beginning of period
|
|
2,820
|
|
15,082
|
Cash and cash
equivalents from continuing operations at end of period
|
|
$
7,509
|
|
$
3,290
|
AZZ Inc.
Non-GAAP
Disclosure
Adjusted Net Income, Adjusted Earnings Per
Share and Adjusted EBITDA
In addition to reporting financial results in accordance with
Generally Accepted Accounting Principles in the United States ("GAAP"), we provided
adjusted net income and adjusted earnings per share, (collectively,
the "Adjusted Earnings Measures"), which are non-GAAP measures.
Management believes that the presentation of these measures
provides investors with greater transparency when comparing
operating results across a broad spectrum of companies, which
provides a more complete understanding of our financial
performance, competitive position and prospects for future capital
investment and debt reduction. Management also believes that
investors regularly rely on non-GAAP financial measures, such as
adjusted net income and adjusted earnings per share, to assess
operating performance and that such measures may highlight trends
in our business that may not otherwise be apparent when relying on
financial measures calculated in accordance with GAAP.
In calculating adjusted net income and adjusted earnings per
share, management excludes intangible asset amortization,
acquisition expenses, transaction related expenses and certain
legal settlements and accruals. Management also provides
EBITDA and Adjusted EBITDA, which are non-GAAP measures. Management
defines EBITDA as earnings excluding depreciation, amortization,
interest, and provision for income taxes. Adjusted EBITDA is
defined as earnings excluding depreciation, amortization, interest,
provision for income taxes, acquisition expenses, transaction
related expenses and certain legal settlements and accruals.
Management believes EBITDA and Adjusted EBITDA are used by
investors to analyze operating performance and evaluate the
Company's ability to incur and service debt and its capacity for
making capital expenditures in the future. EBITDA and Adjusted
EBITDA are also useful to investors to help assess the Company's
estimated enterprise value. In addition, management believes that
the adjustments shown below are useful to investors in order to
allow them to compare the Company's financial results during the
periods shown without the effect of each of these adjustments.
Management provides non-GAAP financial measures for
informational purposes and to enhance understanding of the
Company's GAAP consolidated financial statements. Readers should
consider these measures in addition to, but not instead of or
superior to, the Company's financial statements prepared in
accordance with GAAP. These non-GAAP financial measures may be
determined or calculated differently by other companies, limiting
the usefulness of those measures for comparative purposes.
The following tables provides a reconciliation for the three and
nine months ended November 30, 2023
and 2022 between the various measures calculated in accordance with
GAAP to the Adjusted Earnings Measures (in thousands, except per
share data):
Adjusted Net
Income and Adjusted Earnings Per Share from Continuing
Operations
|
|
|
Three Months Ended
November 30,
|
|
Nine Months Ended
November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Amount
|
|
Per
Diluted
Share(1)
|
|
Amount
|
|
Per
Diluted
Share(1)
|
|
Amount
|
|
Per
Diluted
Share(1)
|
|
Amount
|
|
Per
Diluted
Share(1)
|
Net income from
continuing operations
|
$ 26,890
|
|
|
|
$ 18,439
|
|
|
|
$ 83,744
|
|
|
|
$ 58,912
|
|
|
Less: preferred stock
dividends
|
(3,600)
|
|
|
|
(3,600)
|
|
|
|
(10,800)
|
|
|
|
(4,640)
|
|
|
Net income from
continuing operations available to common shareholders
|
23,290
|
|
|
|
14,839
|
|
|
|
72,944
|
|
|
|
54,272
|
|
|
Impact of preferred
stock dividends
|
3,600
|
|
|
|
—
|
|
|
|
10,800
|
|
|
|
—
|
|
|
Net income and diluted
earnings per share from continuing
operations(2)
|
26,890
|
|
$ 0.92
|
|
14,839
|
|
$ 0.59
|
|
83,744
|
|
$ 2.86
|
|
54,272
|
|
$ 2.17
|
Impact of preferred
stock dividends
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
4,640
|
|
|
Net income and diluted
earnings per share from continuing operations for Adjusted net
income calculation(2)
|
26,890
|
|
0.92
|
|
14,839
|
|
0.59
|
|
83,744
|
|
2.86
|
|
58,912
|
|
2.10
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and
transaction-related expenditures(3)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,320
|
|
0.55
|
Amortization of
intangible assets
|
5,872
|
|
0.20
|
|
6,133
|
|
0.25
|
|
18,108
|
|
0.62
|
|
17,615
|
|
0.63
|
Legal settlement and
accrual(4)
|
4,500
|
|
0.15
|
|
—
|
|
—
|
|
10,250
|
|
0.35
|
|
—
|
|
—
|
Subtotal
|
10,372
|
|
0.35
|
|
6,133
|
|
0.25
|
|
28,358
|
|
0.97
|
|
32,935
|
|
1.18
|
Tax
impact(5)
|
(2,489)
|
|
(0.08)
|
|
(1,472)
|
|
(0.06)
|
|
(6,806)
|
|
(0.23)
|
|
(7,904)
|
|
(0.28)
|
Total
adjustments
|
7,883
|
|
0.27
|
|
4,661
|
|
0.19
|
|
21,552
|
|
0.74
|
|
25,031
|
|
0.90
|
Adjusted net income and
adjusted earnings per share from continuing operations
|
$ 34,773
|
|
$ 1.19
|
|
$ 19,500
|
|
$ 0.78
|
|
$
105,296
|
|
$ 3.60
|
|
$ 83,943
|
|
$ 3.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - Diluted
|
|
|
29,330
|
|
|
|
24,995
|
|
|
|
29,278
|
|
|
|
28,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Earnings per share
amounts included in the table above may not sum due to rounding
differences. Year-to- date earnings per share does not always
represent the sum of the quarters'
earnings per share when the preferred shares for any quarter in the
year-to-date period are anti-dilutive.
|
(2)
|
For the nine months
ended November 30, 2022, the calculation of diluted earnings per
share is based on weighted average shares outstanding of 24,984, as
the preferred shares are
anti-dilutive for this calculation. The calculation of
adjusted diluted earnings per share is based on weighted average
shares outstanding of 28,022, as
the preferred shares are dilutive for this calculation.
Adjusted net income for adjusted earnings per share also includes
the addback of preferred dividends.
|
(3)
|
Includes Corporate
expenses related to the Precoat Metals acquisition and the
divestiture of AZZ Infrastructure Solutions business into the AVAIL
JV.
|
(4)
|
For the three months
ended November 30, 2023, represents a legal accrual related to the
Metal Coatings segment of $4.5 million. For the nine months
ended November 20, 2023, consists
of the $4.5 million accrual for the Metal Coatings segment and
$5.75 million for the settlement of a litigation matter
related to the AIS segment that
was retained following the sale of the AIS business.
|
(5)
|
The non-GAAP effective
tax rate for each of the periods presented is estimated at
24.0%.
|
Adjusted EBITDA
from Continuing Operations
|
|
|
Three Months
Ended
November 30,
|
|
Nine Months
Ended
November 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income from
continuing operations
|
$
26,890
|
|
$
18,439
|
|
$
83,744
|
|
$
58,912
|
Interest
expense
|
25,855
|
|
26,123
|
|
82,331
|
|
61,739
|
Income tax
expense
|
8,780
|
|
2,447
|
|
24,397
|
|
18,380
|
Depreciation and
amortization
|
20,357
|
|
21,938
|
|
59,034
|
|
55,813
|
Acquisition and
transaction-related expenditures
|
—
|
|
—
|
|
—
|
|
15,320
|
Legal settlement and
accrual
|
4,500
|
|
—
|
|
10,250
|
|
—
|
Adjusted EBITDA from
continuing operations
|
$
86,382
|
|
$
68,947
|
|
$
259,756
|
|
$
210,164
|
Adjusted EBITDA
from Continuing Operations by Segment
|
|
|
Three Months Ended
November 30, 2023
|
|
Metal
Coatings
|
|
Precoat
Metals
|
|
Infrastructure
Solutions
|
|
Corporate
|
|
Total
|
Net income (loss) from
continuing operations
|
$
37,813
|
|
$
32,752
|
|
$
8,452
|
|
$
(52,127)
|
|
$
26,890
|
Interest
expense
|
—
|
|
—
|
|
—
|
|
25,855
|
|
25,855
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
8,780
|
|
8,780
|
Depreciation and
amortization
|
6,678
|
|
7,501
|
|
—
|
|
6,178
|
|
20,357
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Legal
accrual
|
4,500
|
|
—
|
|
—
|
|
—
|
|
4,500
|
Adjusted EBITDA from
continuing operations
|
$
48,991
|
|
$
40,253
|
|
$
8,452
|
|
$
(11,314)
|
|
$
86,382
|
|
|
|
Three Months Ended
November 30, 2022
|
|
Metal
Coatings
|
|
Precoat
Metals
|
|
Infrastructure
Solutions
|
|
Corporate
|
|
Total
|
Net income (loss) from
continuing operations
|
$
33,670
|
|
$
21,053
|
|
$
1,006
|
|
$
(37,290)
|
|
$
18,439
|
Interest
expense
|
—
|
|
—
|
|
—
|
|
26,123
|
|
26,123
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
2,447
|
|
2,447
|
Depreciation and
amortization
|
8,225
|
|
13,381
|
|
—
|
|
332
|
|
21,938
|
Adjusted EBITDA from
continuing operations
|
$
41,895
|
|
$
34,434
|
|
$
1,006
|
|
$
(8,388)
|
|
$
68,947
|
|
|
|
Nine Months Ended
November 30, 2023
|
|
Metal
Coatings
|
|
Precoat
Metals
|
|
Infrastructure
Solutions
|
|
Corporate
|
|
Total
|
Net income (loss) from
continuing operations
|
$
128,353
|
|
$
109,449
|
|
$
4,892
|
|
$
(158,950)
|
|
$
83,744
|
Interest
expense
|
—
|
|
—
|
|
—
|
|
82,331
|
|
82,331
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
24,397
|
|
24,397
|
Depreciation and
amortization
|
19,647
|
|
20,407
|
|
—
|
|
18,980
|
|
59,034
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Legal settlement and
accrual
|
4,500
|
|
—
|
|
5,750
|
|
—
|
|
10,250
|
Adjusted EBITDA from
continuing operations
|
$
152,500
|
|
$
129,856
|
|
$
10,642
|
|
$
(33,242)
|
|
$ 259,756
|
|
|
|
Nine Months Ended
November 30, 2022
|
|
Metal
Coatings
|
|
Precoat
Metals
|
|
Infrastructure
Solutions
|
|
Corporate
|
|
Total
|
Net income (loss) from
continuing operations
|
$
123,806
|
|
$
63,955
|
|
$
1,006
|
|
$
(129,855)
|
|
$
58,912
|
Interest
expense
|
—
|
|
—
|
|
—
|
|
61,739
|
|
61,739
|
Income tax
expense
|
—
|
|
—
|
|
—
|
|
18,380
|
|
18,380
|
Depreciation and
amortization
|
24,785
|
|
29,891
|
|
—
|
|
1,137
|
|
55,813
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Acquisition and
transaction-related expenditures
|
—
|
|
—
|
|
—
|
|
15,320
|
|
15,320
|
Adjusted EBITDA from
continuing operations
|
$
148,591
|
|
$
93,846
|
|
$
1,006
|
|
$
(33,279)
|
|
$ 210,164
|
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SOURCE AZZ, Inc.