AZZ incorporated Reports Results for the Fourth Quarter and Fiscal-Year 2005
April 08 2005 - 8:00AM
PR Newswire (US)
AZZ incorporated Reports Results for the Fourth Quarter and
Fiscal-Year 2005 For the Twelve Months - Revenues Increase 12%, Net
Income up 13%, Earnings per Share Increased 10% and Backlog is Up
22% FORT WORTH, Texas, April 8 /PRNewswire-FirstCall/ -- AZZ
incorporated (NYSE:AZZ), a manufacturer of electrical products and
a provider of galvanizing services today announced unaudited
financial results for the three and twelve-month periods ended
February 28, 2005. Revenues for the fourth quarter were $37.9
million, compared to $32.5 million for the comparable period last
year. Net income for the fourth quarter was $1.5 million, or $0.26
per diluted share, compared to net income of $1.2 million, or $0.22
per diluted share, in last year's fiscal fourth quarter. Backlog at
the end of the fourth quarter was $64.8 million, compared to $60.1
million at the end of the previous quarter and $53.1 million for
the fourth quarter of last year. Incoming orders for the fourth
quarter totaled $42.6 million while shipments for the quarter
totaled $37.9 million, resulting in a book to ship ratio of 112
percent for the quarter. For the fiscal year, the Company reported
revenues of $152.4 million, compared to $136.2 million for the
comparable period last year. Net income for the year was $4.8
million, or $0.87 per diluted share, compared to $4.3 million, or
$0.79 per diluted share for the comparable twelve-month period last
year. Incoming orders for the twelve-month period were $164.1
million, while year to date shipments totaled $152.4 million,
resulting in a book to ship ratio of 108 percent. Implementation
cost associated with the installation of our new ERP system and
Sarbanes Oxley compliance cost totaling $775,000 is included in
Selling, General and Administrative expense for the twelve month
period ending February 28, 2005. David H. Dingus, president and
chief executive officer of AZZ incorporated, commented, "We are
pleased to report double digit improvement in our revenues, net
income, fully diluted earnings per share and backlog for the fiscal
year. The revenue and earnings results for Fiscal 2005 exceeded our
previously issued guidance. We were fortunate that customer
scheduled shipment dates were maintained, and in some cases
expedited. The fourth quarter was also favorably impacted by
several quick turn jobs and increased demand for our hot dip
galvanizing services. We did see some flattening in the number of
new electrical quotation requests in December and January. It is
difficult at this time to determine if this is a trend or seasonal.
However, the dollar value of outstanding quotes did increase due
primarily to several large international quotes. It was a year of
extreme competitive conditions and accelerating cost. We were
disappointed that despite improving market conditions for our
electrical products, we were not able to recover our cost
escalation with price increases. Price pressures were and continue
to be extreme, and we have walked away from business which was
below our acceptable minimum levels. Demand for our galvanizing
services showed a very nice increase in the fourth quarter and
margins remained strong despite soaring increases in zinc cost."
Revenues for the Electrical and Industrial Products Segment were
$24.5 million for the fourth quarter, compared to $21.5 million in
the previous year's fourth quarter. Operating income for this
segment was $2.3 million, compared to $1.7 million in the fourth
quarter of last year. For the fiscal year ended February 28, 2005,
revenues were $100.5 million and operating income was $7.3 million
compared to $88.9 and $6.4 million, respectively, in the prior
fiscal year. Revenues for the Company's Galvanizing Service Segment
were $13.4 million for the fourth quarter, compared to $11.0
million in the previous year's comparable quarter. Operating income
was unchanged at $2.4 million in the fourth quarter as compared to
the same quarter last year. For the fiscal year, revenues were
$51.9 million, and operating income was $9.6 million compared to
$47.3 and $8.6 million, respectively, for the prior fiscal year.
Mr. Dingus concluded, "Despite the increases in market demand, we
believe that we will continue to see very competitive pricing due
to excess capacity and a continuing increase in commodity pricing,
particularly zinc that will inhibit our growth and keep pressure on
our margins. We will continue our efforts to aggressively manage
our way through these conditions in order to build upon the
accomplishments of fiscal 2005. Based upon evaluation of
information currently available to management, we are estimating
fiscal 2006 earnings to be within the range of $0.87 to $.97 per
diluted share and revenues to be within the range of $155 to $165
million. Our earnings per share estimate includes the completion of
Oracle ERP system implementation project costs and Sarbanes-Oxley
compliance costs of $550,000. AZZ incorporated will conduct a
conference call to discuss financial results for the fourth quarter
and fiscal year 2005 at 4:15 P.M. Eastern on April 8, 2005.
Interested parties can access the call at (877) 356-5706 or (706)
643-0580 (international). The call will be web cast via the
Internet at http://www.azz.com/AZZinvest.htm. A replay of the call
will be available for three days at (800) 642-1687, of (706)
645-9291 (international) confirmation #5171434, or for 30 days at
http://www.azz.com/AZZinvest.htm. AZZ incorporated is a specialty
electrical equipment manufacturer serving the global markets of
industrial, power generation, transmission and distribution, as
well as a leading provider of hot dip galvanizing services to the
steel fabrication market nationwide. Except for the statements of
historical fact, this release may contain forward-looking
statements that involve risks and uncertainties some of which are
detailed from time to time in documents filed by the Company with
the SEC. Those risks and uncertainties include, but are not limited
to: changes in customer demand and response to products and
services offered by the company, including demand by the electrical
power generation markets, electrical transmission and distribution
markets, the industrial markets, and the hot dip galvanizing
markets; prices and raw material costs, including zinc and natural
gas which are used in the hot dip galvanizing process; changes in
the economic conditions of the various markets the Company serves,
foreign and domestic, customer requested delays of shipments,
acquisition opportunities, adequacy of financing, and availability
of experienced management employees to implement the Company's
growth strategy. The Company can give no assurance that such
forward-looking statements will prove to be correct. AZZ
incorporated Condensed Consolidated Statement of Income (in
thousands except per share amount) Three Months Ended Twelve Months
Ended Feb. 28, Feb. 29, Feb. 28, Feb. 29, 2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (audited) Net sales $37,927
$32,505 $152,428 $136,201 Income before taxes $2,077 $1,982 $7,407
$6,878 Net income $1,460 $1,228 $4,812 $4,263 Net income per share
Basic $0.27 $0.23 $0.88 $0.80 Diluted $0.26 $0.22 $0.87 $0.79
Diluted average shares outstanding 5,538 5,475 5,517 5,397
Condensed Consolidated Balance Sheet (in thousands) Feb. 28, 2005
Feb. 29, 2004 (unaudited) (audited) Assets: Current assets $51,162
$43,713 Net property, plant and equipment $35,312 $34,201 Other
assets, net $42,161 $42,112 Total assets $128,635 $120,026
Liabilities and shareholders' equity: Current liabilities $26,324
$23,504 Long term debt due after one year $23,875 $25,375 Other
liabilities $3,117 $1,850 Shareholders' equity $75,319 $69,297
Total liabilities and shareholders' equity $128,635 $120,026
Condensed Consolidated Statement of Cash Flow (in thousands) Twelve
Months Twelve Months Ended Ended Feb. 28, 2005 Feb. 29,2004
(unaudited) (audited) Net cash provided by (used in) operating
activities $6,394 $14,963 Net cash provided by (used in) investing
activities ($6,638) ($2,920) Net cash provided by (used in)
financing activities ($684) ($12,582) Net increase (decrease) in
cash and cash equivalents ($928) ($539) Cash and cash equivalents
at beginning of year $1,445 $1,984 Cash and cash equivalents at end
of quarter $517 $1,445 Contact: Dana Perry, Senior Vice President
-- Finance and CFO AZZ incorporated 817-810-0095 Internet:
http://www.azz.com/ RCG Capital Markets Group, Inc. 480-675-0400
Retail: Robert Blum Institutional/Analysts: Joe Dorame Media:
Andrea Huttle Internet: http://www.rcgonline.com/ DATASOURCE: AZZ
incorporated CONTACT: Dana Perry, Senior Vice President -- Finance
and CFO of AZZ incorporated, +1-817-810-0095; or Retail, Robert
Blum, or Institutional/Analysts, Joe Dorame, or Media, Andrea
Huttle, all of RCG Capital Markets Group, Inc., +1-480-675-0400,
for AZZ incorporated Web site: http://www.rcgonline.com/ Web site:
http://www.azz.com/AZZinvest.htm Web site: http://www.azz.com/
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