TEXAS (State or Other Jurisdiction of Incorporation or Organization) | 1-12777 Commission File No. | 75-0948250 (I.R.S. Employer Identification Number) |
One Museum Place, Suite 500 3100 West Seventh Street Fort Worth, TX 76107 (Address of principal executive offices, including zip code) |
Registrant’s Telephone Number, including Area Code: | (817) 810-0095 |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit 99.1 | AZZ incorporated’s Press Release reporting the Company’s unaudited earnings and other selected financial information for the three and nine month periods ended November 30, 2012, dated January 9, 2013. |
Exhibit 99.2 | Unaudited Financial and Other Statistical Information for the three and nine month periods ended November 30, 2012, and Guidance for Fiscal Year 2013. |
AZZ incorporated | |
DATE: 1/9/2013 | By: /s/ Dana Perry |
Dana Perry Senior Vice President Finance Chief Financial Officer |
Contact: | Dana Perry, Senior Vice President – Finance and CFO |
AZZ incorporated 817-810-0095 | |
Internet: www.azz.com | |
Lytham Partners 602-889-9700 | |
Joe Dorame or Robert Blum | |
Internet: www.lythampartners.com |
Three Months Ended | Nine Months Ended | ||||||||||||||
November 30, 2012 | November 30, 2011 | November 30, 2012 | November 30, 2011 | ||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
Net sales | $149,675 | $116,493 | $430,203 | $345,487 | |||||||||||
Costs and Expenses: | |||||||||||||||
Cost of Sales | 104,672 | 85,686 | 304,022 | 253,231 | |||||||||||
Selling, General and Administrative | 17,895 | 11,320 | 49,019 | 36,110 | |||||||||||
Interest Expense | 3,234 | 3,519 | 9,802 | 10,453 | |||||||||||
Net (Gain) Loss on Sales or Insurance Settlement of Property, Plant and Equipment | 157 | (7) | (5,794) | 164 | |||||||||||
Other (Income) | (454) | (193) | (700) | (1,225) | |||||||||||
$125,504 | $100,325 | $356,349 | $298,733 | ||||||||||||
Income before income taxes | 24,171 | 16,168 | 73,854 | 46,754 | |||||||||||
Income Tax Expense | 8,807 | 6,147 | 26,631 | 17,662 | |||||||||||
Net income | $15,364 | $10,021 | $47,223 | $29,092 | |||||||||||
Net income per share | |||||||||||||||
Basic | $0.61 | $0.40 | $1.87 | $1.16 | |||||||||||
Diluted | $0.60 | $0.39 | $1.85 | $1.15 | |||||||||||
Diluted average shares outstanding | 25,603 | 25,374 | 25,537 | 25,340 | |||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
November 30, 2012 | November 30, 2011 | November 30, 2012 | November 30, 2011 | |||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
Net Sales: | ||||||||||||||||
Electrical and Industrial Products | $60,421 | $43,849 | $171,633 | $136,518 | ||||||||||||
Galvanizing Services | 89,254 | 72,644 | 258,570 | 208,969 | ||||||||||||
$149,675 | $116,493 | $430,203 | $345,487 | |||||||||||||
Segment Operating Income: | ||||||||||||||||
Electrical and Industrial Products | $8,952 | $5,719 | $25,087 | $18,214 | ||||||||||||
Galvanizing Services | 24,449 | 18,555 | 70,631 | 54,431 | ||||||||||||
Total Segment Operating Income | $33,401 | $24,274 | $95,718 | $72,645 | ||||||||||||
November 30, 2012 | February 29, 2012 | |||||
(unaudited) | (audited) | |||||
Assets: | ||||||
Current assets | $252,132 | $302,736 | ||||
Net property, plant and equipment | $152,006 | $135,827 | ||||
Other assets, net | $270,327 | $168,212 | ||||
Total assets | $674,465 | $606,775 | ||||
Liabilities and shareholders’ equity: | ||||||
Current liabilities | $109,493 | $77,979 | ||||
Long term debt due after one year | $196,429 | $210,714 | ||||
Other liabilities | $41,174 | $30,473 | ||||
Shareholders’ equity | $327,369 | $287,609 | ||||
Total liabilities and shareholders’ equity | $674,465 | $606,775 | ||||
Nine Months Ended | ||||||
November 30, 2012 | November 30, 2011 | |||||
(unaudited) | (unaudited) | |||||
Net cash provided by (used in) operating activities | $66,587 | $46,832 | ||||
Net cash provided by (used in) investing activities | ($133,602 | ) | ($16,070 | ) | ||
Net cash provided by (used in) financing activities | ($26,807 | ) | ($9,221 | ) | ||
Effect of exchange rate changes on cash | $27 | $168 | ||||
Net increase (decrease) in cash and cash equivalents | ($93,797 | ) | $21,709 | |||
Cash and cash equivalents at beginning of period | $143,303 | $138,390 | ||||
Cash and cash equivalents at end of period | $49,506 | $160,099 | ||||
Three Months Ended November 30, 2012 | Nine Months Ended November 30, 2012 | ||||||||
Net Sales | $149,674,616 | $430,202,771 | |||||||
Cost of Sales | 104,671,793 | 304,022,422 | |||||||
Selling, General and Administrative | 17,894,549 | 49,019,008 | |||||||
Interest Expense | 3,234,340 | 9,802,412 | |||||||
Net (Gain) Loss on Sale of Property, Plant and Equipment and Insurance Proceeds | 157,065 | (5,794,623) | |||||||
Other (Income) Expense, Net | (453,853) | (700,074) | |||||||
125,503,894 | 356,349,145 | ||||||||
Income Before Income Taxes | 24,170,722 | 73,853,626 | |||||||
Income Tax Expense | 8,807,042 | 26,631,069 | |||||||
Net Income | $15,363,680 | $47,222,557 | |||||||
Income Per Share: | |||||||||
Basic | $.61 | $1.87 | |||||||
Diluted | $.60 | $1.85 | |||||||
Assets: | Period Ended November 30, 2012 | |||||
Current assets: | ||||||
Cash and cash equivalents | $49,505,820 | |||||
Accounts receivable | 95,598,244 | |||||
Allowance for doubtful accounts | (1,200,000) | |||||
Inventories | 84,141,962 | |||||
Costs and estimated earnings in excess of billings on uncompleted contracts | 12,256,456 | |||||
Deferred income taxes | 7,048,783 | |||||
Prepaid expenses and other receivables | 4,780,366 | |||||
Total current assets | 252,131,631 | |||||
Net property, plant, and equipment | 152,005,729 | |||||
Goodwill, less accumulated amortization | 166,607,181 | |||||
Intangibles and Other Assets | 103,719,991 | |||||
$674,464,532 | ||||||
Liabilities and Shareholders’ Equity: | ||||||
Current liabilities: | ||||||
Accounts payable | $30,576,637 | |||||
Accrued liabilities | 78,916,188 | |||||
Total current liabilities | 109,492,825 | |||||
Long-term accrued liabilities due after one year | 8,748,481 | |||||
Long-term debt due after one year | 196,428,571 | |||||
Deferred income taxes | 32,426,015 | |||||
Shareholders’ equity | 327,368,640 | |||||
$674,464,532 |
Period Ended November 30, 2012 | |||||
Net cash provide by operating activities | $66,586,657 | ||||
Net cash used in investing activities | (133,602,174) | ||||
Net cash provided by (used in) financing activities | (26,807,268) | ||||
Effect of exchange rate changes on cash | 25,939 | ||||
Net (decrease) increase in cash and cash equivalents | (93,796,846) | ||||
Cash and cash equivalents at beginning of period | 143,302,666 | ||||
Cash and cash equivalents at end of period | $49,505,820 |
Three Months Ended November 30, 2012 | Nine Months Ended November 30, 2012 | |||||||
Net sales: | ||||||||
Electrical and Industrial Products | $60,421 | $171,633 | ||||||
Galvanizing Services | 89,254 | 258,570 | ||||||
149,675 | 430,203 | |||||||
Segment operating income (a): | ||||||||
Electrical and Industrial Products | 8,952 | 25,087 | ||||||
Galvanizing Services | 24,449 | 70,631 | ||||||
33,401 | 95,718 | |||||||
General corporate expenses (b) | 5,721 | 17,795 | ||||||
Interest expense | 3,234 | 9,802 | ||||||
Other (income) expense, net (c) | 275 | (5,733) | ||||||
9,230 | 21,864 | |||||||
Income Before Taxes | $24,171 | $73,854 | ||||||
Total assets: | ||||||||
Electrical and Industrial Products | $260,191 | $260,191 | ||||||
Galvanizing Services | 359,694 | 359,694 | ||||||
Corporate | 54,580 | 54,580 | ||||||
$674,465 | $674,465 |
Actual Year to Date November 30, 2012 | Projected Year Ended February 28, 2013 | ||||||||
Net Sales: | |||||||||
Electrical and Industrial Products | $171,633 | $240,000 to $245,000 | |||||||
Galvanizing Services | $258,570 | $335,000 to $340,000 | |||||||
Total Sales | $430,203 | $575,000 to $585,000 | |||||||
Diluted earnings per share | $1.85 | $2.35 to $2.45 | |||||||
Net Sales by Market Segment: | |||||||||
Power Generation | 32 | % | |||||||
Transmission and Distribution | 21 | % | |||||||
Industrial | 47 | % | |||||||
Electrical and Industrial Products | |||||||||
Revenues by Industry: | |||||||||
Power Generation | 46 | % | |||||||
Transmission and Distribution | 29 | % | |||||||
Industrial | 25 | % | |||||||
Galvanizing Services | |||||||||
Revenues by Industry: | |||||||||
Electrical and Telecommunications | 35 | % | |||||||
OEM’s | 15 | % | |||||||
Industrial | 30 | % | |||||||
Bridge and Highway | 10 | % | |||||||
Petro Chemical | 10 | % | |||||||
Operating Margins: | |||||||||
Electrical and Industrial Products | 14.6 | % | 14% to 16% | ||||||
Galvanizing Services | 27.3 | % | 26% to 27% | ||||||
Cash Provided By (Used In)Operations | $66,587 | $80,000 | |||||||
Capital Expenditures | $19,628 | $29,000 | |||||||
Depreciation and Amortization of Intangible Assets and Debt Issue Cost | $21,073 | $29,000 | |||||||
Total Bank Debt | $210,714 | $210,714 | |||||||
Cash Dividend | $9,870 | $13,300 | |||||||
Percent of Business By Segment: | |||||||||
Electrical and Industrial Products | 40 | % | 42 | % | |||||
Galvanizing Services | 60 | % | 58 | % |
Period Ended | |||||
Backlog | 2/29/12 | $ | 138,621 | ||
Bookings | 124,666 | ||||
Shipments | 127,143 | ||||
Backlog | 5/31/12 | $ | 136,144 | ||
Book to Ship Ratio | 0.98 | ||||
Bookings | 151,804 | ||||
Acquired Backlog | 78,491 | ||||
Shipments | 153,385 | ||||
Backlog | 8/31/12 | $ | 213,054 | ||
Book to Ship Ratio | 0.99 | ||||
Bookings | 152,421 | ||||
Shipments | 149,675 | ||||
Backlog | 11/30/12 | $ | 215,800 | ||
Book to Ship Ratio | 1.02 |