AZZ Inc. (NYSE:AZZ) Q2 2024 Earnings Conference Call October 11, 2023 11:00 AM ET Company Participants Sandy Martin - IR, Three Part Advisors Tom Ferguson - President & CEO Philip Schlom - CFO David Nark - SVP of Marketing, Communications & IR Conference Call Participants John Franzreb - Sidoti & Company Adam Thalhimer - Thompson Davis Michael Heim - Noble Capital Markets Lucas Pipes - B. Riley Securities Jonathan Braatz - Kansas City Capital Brett Kearney - Gabelli Funds Operator Good morning, and welcome ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-12777 AZZ Inc. (Exact name of registrant as specified in its charter) Texas 75-0948250 (State or other jurisdiction of incorporation or organization) (I.R. ...

AZZ Inc. (NYSE:AZZ) Q1 2024 Earnings Conference Call July 10, 2023 11:00 AM ET Company Participants Sandy Martin - Investor Relations, Three Part Advisors Tom Ferguson - President and Chief Executive Officer Philip Schlom - Chief Financial Officer Conference Call Participants John Franzreb - Sidoti & Company Adam Thalhimer - Thompson Davis Brett Kearney - Gabelli Funds Operator Hello, and welcome to the AZZ Incorporated First Quarter 2024 Earnings Conference Call and Webcast. All participants will be in lis ...

AZZ Inc. Q1 FY2024 Earnings Release Presentation ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 1-12777 AZZ Inc. (Exact name of registrant as specified in its charter) Texas 75-0948250 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

AZZ Inc. Q4 and Full Year FY2023 Earnings Release Presentation ...

AZZ Inc. (NYSE:AZZ) Q4 2023 Earnings Conference Call April 26, 2023 11:00 AM ET Company Participants Sandy Martin - Investor Relations Tom Ferguson - President and Chief Executive Officer Philip Schlom - Chief Financial Officer David Nark - Senior Vice President, Marketing Communications and Investor Relations Conference Call Participants John Franzreb - Sidoti & Company Adam Thalhimer - Thomson Davis John Braatz - Kansas City Capital Bill Baldwin - Baldwin Anthony Securities Brett Kearney - Gabelli Funds O ...

Financial Performance - For fiscal year 2023, total sales reached $1,323.6 million, a significant increase of 151.8% compared to $525.6 million in fiscal 2022[120] - The AZZ Metal Coatings segment generated sales of $636.98 million, up 21.2% from $525.6 million in the prior year, driven by improved pricing and increased steel processing volume[119] - The AZZ Precoat Metals segment, acquired on May 13, 2022, contributed $686.67 million in sales for fiscal 2023[120] - Net income for fiscal 2023 was $(61.2) million, a decline from $84.0 million in fiscal 2022, resulting in a net income margin of (4.6)% compared to 16.0% in the prior year[118] - Operating income for the AZZ Metal Coatings segment increased by $27.2 million, or 21.1%, to $156.0 million, maintaining an operating margin of 24.5%[123] - The AZZ Infrastructure Solutions segment reported a sales decline of 32.0% to $256.2 million for fiscal 2023, primarily due to its divestiture on September 30, 2022[129] - The company recorded a net income from continuing operations of $66.339 million for the year ended February 28, 2023, compared to $49.817 million in 2022, representing a 33% increase[169] - Adjusted EBITDA from continuing operations for the year ended February 28, 2023, was $267.385 million, significantly up from $113.029 million in 2022, indicating a strong operational performance[170] - The company reported a net loss of $61,214,000 available to common shareholders for the year, compared to a net income of $84,022,000 in 2022[206] - Basic earnings per share from continuing operations increased to $2.34, up from $2.00 in the previous year, while earnings per share from discontinued operations fell to $(4.81) from $1.38[204] Debt and Financing - Interest expense surged to $88.8 million in fiscal 2023, up from $6.4 million in fiscal 2022, primarily due to debt incurred from the Precoat Acquisition[125] - The company reported a debt-to-equity ratio of 1.24:1 at the end of fiscal 2023, compared to 0.34:1 at the end of fiscal 2022[125] - The 2022 Credit Agreement includes a senior secured initial term loan of $1.3 billion due May 13, 2029, and a revolving credit facility of $400.0 million due May 13, 2027[141] - The effective interest rate for the Revolving Credit Facility and Term Loan B was 8.81% as of February 28, 2023[143] - The leverage ratio as of February 28, 2023, was 5.75, with a maximum Total Net Leverage Ratio requirement decreasing to 4.5 by May 31, 2024[143] - The proceeds from the Convertible Notes issuance of $240.0 million were used to fund the Precoat Acquisition[144] - The company had total outstanding letters of credit amounting to $16.7 million as of February 28, 2023[145] - The company did not repurchase shares during fiscal 2023, prioritizing debt repayments instead, after repurchasing 601,822 shares for $30.8 million in fiscal 2022[151] Cash Flow and Investments - Net cash provided by operating activities of continuing operations was $91.4 million for fiscal 2023, an increase from $60.6 million in fiscal 2022[135] - Net cash used in investing activities of continuing operations rose to $1,228.9 million, largely due to the Precoat Acquisition[136] - Net cash provided by financing activities for continuing operations in fiscal 2023 was $1,027.3 million, a significant increase from $0.9 million in fiscal 2022[137] - Cash used in investing activities of continuing operations was $1,228,921,000, significantly higher than $82,143,000 in the previous year, indicating a substantial increase in investment activities[209] - Proceeds from the issuance of common stock amounted to $2,372,000, slightly down from $2,788,000 in 2022[209] Assets and Liabilities - As of February 28, 2023, total assets of AZZ Inc. amounted to $2,221.5 million, a significant increase from $1,133.0 million in 2022, representing an increase of approximately 96.3%[201] - Total liabilities reached $1,368.0 million in 2023, compared to $465.7 million in 2022, representing an increase of approximately 194.5%[201] - Long-term debt increased to $1,058.1 million in 2023 from $226.5 million in 2022, indicating a substantial rise of approximately 367.5%[201] - The company reported current assets of $417.4 million as of February 28, 2023, compared to $386.5 million in 2022, reflecting a growth of about 8.5%[201] - Accounts receivable increased to $183.4 million in 2023 from $85.1 million in 2022, marking an increase of approximately 115.0%[201] - Goodwill rose to $702.5 million in 2023, up from $190.4 million in 2022, reflecting an increase of about 268.5%[201] - The company reported retained earnings of $506.0 million as of February 28, 2023, down from $584.2 million in 2022, indicating a decrease of about 13.4%[201] Acquisitions and Divestitures - The acquisition of Precoat Metals on May 13, 2022, resulted in the recognition of $446.0 million in intangible assets, including customer relationships, tradename, and technology[187] - The company completed a joint venture with Fernweh Group LLC, contributing its AZZ Infrastructure Solutions segment at an implied enterprise value of $300 million, resulting in a loss on the sale of the segment[159] - The total purchase price for the Precoat Acquisition was approximately $1.3 billion, funded primarily through a term loan and convertible debt[274] - The divestiture of the AZZ Infrastructure Solutions segment resulted in a 60% interest sold to Fernweh Group LLC at an implied enterprise value of $300,000,000[290] - The company executed a plan to divest non-core businesses, including the sale of the Galvabar business for net proceeds of $8,300,000[300] Operational Metrics - Cost of sales for fiscal year 2023 was $49,413 million, a significant increase from $23,795 million in 2022, representing a growth of 107.5%[264] - Total depreciation expense for fiscal year 2023 was $51,977 million, compared to $25,423 million in 2022, marking an increase of 104.5%[264] - The company’s total accumulated depreciation for property, plant, and equipment was $293.2 million as of February 28, 2023[262] - The company’s lease expense for minimum lease payments is recognized on a straight-line basis over the lease term[253] - The company recognized $0.8 million in income from subleases during fiscal year 2023[311] Tax and Compliance - The non-GAAP effective tax rates for fiscal 2023 and 2022 were 24.0% and 22.9%, respectively, indicating a slight increase in the tax burden[169] - The company maintained effective internal control over financial reporting as of February 28, 2023, according to the audit opinion[194] - The company assesses its investment in unconsolidated joint ventures for recoverability when events suggest a decline in value, ensuring prudent financial management[160] - The Company did not recognize any impairment losses for goodwill or indefinite-lived intangible assets for fiscal years 2023, 2022, and 2021[240]

AZZ Inc. (NYSE:AZZ) Q3 2023 Earnings Conference Call January 10, 2023 11:00 AM ET Company Participants Sandy Martin - Managing Director, Three Part Advisors Tom Ferguson - CEO Philip Schlom - CFO David Nark - SVP, Marketing, Communications & IR Conference Call Participants John Franzreb - Sidoti & Company Noelle Dilts - Stifel John Braatz - Kansas City Capital Operator Good day, and welcome to the AZZ Inc. Q3 2023 Earnings Conference Call and Webcast. All participants will be in listen-only mode. [Operator ...

AZZ Inc. Q3 FY2023 Earnings Release Presentation January 10, 2023 Q3 FY2023 EARNINGS PRESENTATION Disclaimers Cautionary Statements Regarding Forward Looking Statements — Certain statements herein about our expectations of future events or results constitute forwardlooking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995, including the statements regarding our strategic and financial initiatives. You can identify forward-looking statements by term ...