AZZ Inc. Reports Financial Results for the Third Quarter, Fourth Quarter, Fiscal Year 2018, and Issues Guidance for Fiscal Year 2019

Mr. Ferguson continued, "As we previously reported, we took appropriate realignment actions during the year, including a change in leadership of the Electrical platform, restructuring the sales effort, and increasing emphasis on operational excellence and customer satisfaction. We are seeing signs of improvement, and our expectation is for more normalized margins in the business as we move through 2019 and into 2020. The Specialty Welding business was restructured during the year to better align its cost structure, and we invested in the selling organization to help drive WSI's unique value proposition and improve the outlook for fiscal 2019."

Fiscal Year 2019 Guidance

Mr. Ferguson concluded, "We are gaining confidence in our outlook for fiscal 2019 as we see improving market activity in refinery turnarounds and are seeing more robust galvanizing markets. Additionally, we should benefit from improved operational performance with our realigned sales team and expect accretion from our recent acquisitions. We are initiating our fiscal 2019 earnings per fully diluted share guidance range at $1.75 to $2.25, a substantial increase over our Non-GAAP adjusted earnings for fiscal 2018 of $1.35.  We are also initiating our fiscal 2019 annual sales guidance range from $900 million to $960 million. We believe we have taken the necessary actions to improve operating performance and with the improved market dynamics, we are optimistic for a much improved fiscal 2019."

Fourth Quarter and Fiscal Year Results

For the twelve-month period, the Company reported revenues of $810.4 million compared to $863.5 million for the comparable period last year, a decrease of 6.2%.  Net income for the twelve months was $45.2 million, or $1.73 per diluted share, compared to $61.3 million, or $2.35 per diluted share compared to the prior fiscal year.  Although the Company posted $1.73 earnings per diluted share for fiscal 2018, when adjusted for one-time non-recurring items, including the favorable impact of the Tax Cuts and Jobs Act of 2017, the adjusted earnings per share for fiscal 2018 were $1.35 per share (as shown in the attached reconciliation table).

Bookings for fiscal 2018 were $746.5 million, compared to $858.9 million for the prior year, a decrease of 13.1%.  Backlog at the end of the 2018 fiscal year was $265.4 million, a decrease of 16.5% compared to backlog at the end of the prior year of $317.9 million.  Incoming orders for the year were $746.5 million while revenues for the year totaled $810.4 million, resulting in a book to bill ratio of 0.92.  Approximately 41% of the $265.4 million in backlog is expected to be delivered outside of the U.S.

Revenues for the fourth quarter were $200.7 million compared to $184.3 million for the same quarter last year, an increase of 8.9%. Net income for the fourth quarter was $23.5 million, or $0.90 per diluted share, compared to net income of $12.3 million, or $0.47 per diluted share, for last year's fourth fiscal quarter.  The increase was primarily from one-time non-recurring items.

Energy Segment

For full year fiscal 2018, Energy segment revenues decreased 13.7% to $421.0 million and the operating loss of $1.8 million was a $54.3 million decline from the prior year. The decrease in net sales for fiscal 2018 was caused by several factors including reduced turnarounds in the U.S. refinery market, continued softness in the petrochemical market, negative impacts from the hurricane Harvey, cancellations and delays in the release of several large projects in the U.S. and overseas. In addition, net sales were negatively impacted by the weak nuclear market coupled with the Westinghouse Electric Company bankruptcy filed on March 29, 2017.  Operating margins for the 2018 fiscal year were negative 0.4% as compared to 10.8% in the prior fiscal year. This decrease was attributable to the reduction in refinery turnarounds described above, which typically carry a higher margin, contract cancellations, lower margins on weakness in the Electrical market in the U.S. and the effects from the Westinghouse bankruptcy.  In addition, for fiscal 2018, the Company recognized impairment charge of $10.5 million and a provision for doubtful accounts of $2.9 million resulting from an adverse court decision related to certain outstanding accounts receivables.

Revenues for the Energy segment for the fourth quarter of fiscal 2018 were $103.5 million as compared to $102.6 million for the same quarter last year, increasing by 0.9%. Operating income for the segment fell to $1.3 million compared to $10.7 million in the same period last year. Operating margins for the fourth quarter were 1.2% as compared to 10.5% in the prior year period.

Metal Coatings Segment

For full year fiscal 2018, Metal Coatings segment revenues increased 3.7% to $389.4 million and operating income increased 6.7% to $84.3 million compared to $375.5 million and $79.0 million respectively, for the prior fiscal year.  The increased revenue was attributable to incremental net sales from our acquisitions during the year and increased prices. These increases were partially offset by decreased volumes in steel processed as a result of softness in the solar, petrochemical, and the oil and gas markets.  Operating margins for the 2018 fiscal year were 21.7% compared to 21.0% in the prior fiscal year. 

Revenues for the Company's Metal Coatings segment for the fourth quarter of fiscal 2018 were $97.2 million, compared to the $81.6 million in the same period last year, an increase of 19.1%. Operating income was $18 million as compared to $18.4 million in the prior period, a decrease of 1.9%. Operating margins for the fourth quarter were 18.5%, compared to 22.5% in the same period last year.

Conference Call Details

Interested parties can access the conference call by dialing (844) 855-9499 or (412) 317-5497 (international). The call will be webcast via the Internet at http://www.azz.com/investor-relations. 

A replay of the call will be available for three days at (877) 344-7529 or (412) 317-0088 (international), confirmation # 10120333, or for 30 days at http://www.azz.com/investor-relations.

There will be a slide presentation accompanying today's event. The Company's slide presentation for the call will be available on the Investor Relations page at www.azz.com. 

About AZZ Inc.

AZZ Inc. is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the markets of power generation, transmission, distribution and industrial in protecting metal and electrical systems used to build and enhance the world's infrastructure. AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide.

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," "should," "expects," "plans," "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. This release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand and response to products and services offered by AZZ, including demand by the power generation markets, electrical transmission and distribution markets, the industrial markets, and the hot dip galvanizing markets; prices and raw material cost, including zinc and natural gas which are used in the hot dip galvanizing process; changes in the political stability and economic conditions of the various markets that AZZ serves, foreign and domestic, customer requested delays of shipments, acquisition opportunities, currency exchange rates, adequacy of financing, and availability of experienced management and employees to implement AZZ's growth strategy. AZZ has provided additional information regarding risks associated with the business in AZZ's Annual Report on Form 10-K for the fiscal year ended February 28, 2018 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 in 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.

---Financial tables on the following page---

AZZ Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share data)
	Three Months Ended								Twelve Months Ended
	February 28, 2018				February 28, 2017				February 28, 2018				February 28, 2017
	(unaudited)				(unaudited)
Net sales	$	200,660			$	184,266			$	810,430			$	863,538
Costs of sales	162,650				137,463				650,121				658,206
Gross margin	38,010				46,803				160,309				205,332
Selling, general and administrative	28,726				25,526				112,061				106,424
Operating income	9,284				21,277				48,248				98,908
Interest expense	3,593				3,573				13,860				14,732
Net loss on sale of property, plant and equipment and insurance proceeds	190				50				765				76
Other (income) expense, net	3,209				(248)				2,724				(1,197)
Income before income taxes	2,292				17,902 Werbung Mehr Nachrichten zur Azz Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 02:00 - PR Newswire BlackRock Throgmorton Trust Plc - Total Voting Rights 24.04.24 - PR Newswire Finsbury Growth & Income Trust Plc - Transaction in Own Shares 24.04.24 - PR Newswire BlackRock Sustainable American Income Trust Plc - Transaction in Own Shares SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59