AZZ(US:AZZ)2025-01-07 21:24Financial Performance - Total sales reached $403.7 million, an increase of 5.8% compared to the prior year[5] - Adjusted net income was $41.9 million, up 20.5%, with adjusted diluted EPS of $1.39, reflecting a 16.8% increase[5] - Consolidated adjusted EBITDA grew to $90.7 million, representing 22.5% of sales, compared to $86.4 million or 22.6% of sales in the prior year[5] - Segment adjusted EBITDA margin for Metal Coatings was 31.5%, while Precoat Metals improved to 19.1%[5] - Adjusted net income for the three months ended November 30, 2024, was $41,904, or $1.39 per diluted share, compared to $34,773, or $1.19 per diluted share in 2023, marking a 17.0% increase in earnings per share[28] - Adjusted EBITDA for the three months ended November 30, 2024, was $90,722, compared to $86,382 in 2023, indicating a growth of 5.4%[29] - The company reported a net income of $33,603 for the three months ended November 30, 2024, compared to $26,890 in 2023, representing a 25.1% increase[28] - Adjusted EBITDA for the same period was $259,756, with the Metal segment contributing $152,500 and the Coatings segment $129,856[34] Sales and Revenue - Metal Coatings sales increased by 3.3% to $168.6 million, while Precoat Metals sales rose by 7.6% to $235.1 million[5] - The revised fiscal year 2025 guidance estimates sales between $1.550 billion and $1.600 billion, with adjusted EBITDA projected at $340 million to $360 million[10] Debt and Leverage - The company reduced debt by $80 million year-to-date, achieving a net leverage ratio of 2.6x[4] - Long-term debt decreased to $879,548 from $952,742, a reduction of 7.7%[20] - The net leverage ratio improved to 2.6x for the trailing twelve months ended November 30, 2024, down from 3.4x[35] - Gross debt decreased to $930,250 as of November 30, 2024, from $1,010,250 in February 2024[35] Cash Flow and Liquidity - Cash from operations for the first nine months of fiscal year 2025 was $185.6 million, supporting debt reduction and dividend payments[8] - Cash and cash equivalents at the end of the period were $1,484, down from $7,509, reflecting a decrease of 80.3%[22] - Cash per bank statement was $10,233, indicating liquidity position amidst the overall debt[35] - The effect of exchange rate changes on cash resulted in a positive impact of $550 for the nine months ended November 30, 2024, compared to $58 in 2023[22] Capital Expenditures - Capital expenditures for the third quarter totaled $26.4 million, including $11.2 million for a new facility in Washington, Missouri[4] Dividends - The company declared a cash dividend of $0.17 per share to common shareholders[5] Assets and Liabilities - Total assets increased to $2,244,550, up from $2,195,505, representing a growth of 2.2%[20] - Current liabilities rose to $222,292 from $194,306, an increase of 14.4%[20] - Depreciation and amortization expenses totaled $59,034 for the nine months ended November 30, 2023[34] - Interest expense for the nine months was $82,331, contributing to the overall financial burden[34] - Legal settlements and accruals amounted to $10,250 for the nine months ended November 30, 2023, impacting overall financial performance[34]