AZZ Inc. Reports Financial Results for Fiscal Year 2021; Generates Adjusted EPS of $2.11; Reported EPS of $1.52
April 23, 2021 - FORT WORTH, TX - AZZ Inc. (NYSE: AZZ), a global provider of metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services today issued its audited consolidated financial statements contained in the Company's Fiscal Year 2021 Annual Report on Form 10-K for the year ended February 28, 2021.
Fiscal Year 2021 Overview and Recent Highlights:
•Achieved 34th consecutive year of profitability
•Reported earnings per share of $1.52 and reported net income of $39.6 million
•Full Year adjusted earnings per share of $2.11 and adjusted net income of $55.0 million
•Sales of $838.9 million, decreased by 21.0% compared to prior year
◦Metal Coatings segment full year results versus prior year:
▪Sales of $457.8 million, down 8.3%, with galvanizing sales down 6.5%
▪Adjusted operating income of $106.7 million, down 1.1%
▪Adjusted operating margin of 23.3%, versus 21.6%, or 170 bps improvement
◦Infrastructure Solutions segment full year results versus prior year:
▪Sales of $381.1 million, down 32.3%
▪Adjusted operating income of $15.7 million, down 62.6%
▪Adjusted operating margin of 4.1% versus 7.5%, or 340 bps decline
•Cash provided from operating activities of $92.0 million decreased 35.3% versus prior year
•Repurchased over 1.2 million shares, totaling $48.3 million, during the fiscal year
•Effective tax rate of 22.3%; 340 basis points improved over prior year
•Company reaffirms fiscal year 2022 guidance; Revenue of $835 - $935 million, and earnings per share of $2.45 - $2.95, excluding potential acquisitions or divestitures
Tom Ferguson, President and Chief Executive Officer of AZZ, commented, “Throughout fiscal year 2021, the COVID-19 pandemic significantly impacted our operations and financial results. Despite the extraordinary circumstances, the safety and well-being of our employees and continued support of our customers remained top priorities. We were able to generate sales of $838.9 million and net income of $39.6 million, or $1.52 per diluted share, on a reported basis, and achieve our 34th consecutive year of profitability. Our consolidated bookings for the year decreased 19.3% to $785.3 million while our backlog decreased 23.7% to $186.1 million, primarily due to both the pandemic as well as the successful completion of multiple large multi-year international electrical projects for which revenue was recognized in fiscal year 2021. We continued our long history of strong cash flows by generating net cash provided by operating activities of $92.0 million, a decrease of 35.3% compared to prior year. Reported EPS of $1.52 includes pre-tax charges of $20.0 million for impairment and restructuring and the loss on the disposal of the Galvabar and SMS businesses during the year. Excluding these charges, adjusted net income was $55.0 million, down 22.8% compared to prior year adjusted net income of $71.2 million. Adjusted EPS was $2.11, down 22.1% compared to $2.71 as adjusted for the prior year, on a diluted basis.
The following information was filed by Azz Inc (AZZ) on Friday, April 23, 2021 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.