AZZ incorporated Reports Results for the Fourth Quarter and Fiscal-Year 2004
April 15 2004 - 8:00AM
PR Newswire (US)
AZZ incorporated Reports Results for the Fourth Quarter and
Fiscal-Year 2004 FORT WORTH, Texas, April 15 /PRNewswire-FirstCall/
-- AZZ incorporated , a manufacturer of electrical products and a
provider of galvanizing services, today announced unaudited
financial results for the fourth quarter and fiscal year ended
February 29, 2004. Revenues for the fourth quarter were $32.5
million compared to $39.8 million for the same quarter last year.
Net income for the quarter was $1.2 million, or $0.22 per diluted
share, compared to net income of $1.4 million, or $0.27 per diluted
share, in last year's fiscal fourth quarter. Incoming orders for
the fourth quarter were $33.1 million for a book to ship ratio of
102 percent for the quarter. For the year, the Company reported
unaudited revenues of $136.2 million compared to fiscal year 2003
revenues of $183.4 million. Net income for the year was $4.3
million, or $0.79 per diluted share, compared to net income of $8.6
million, or $1.63 per diluted share, last year. Guidance, which had
previously been issued for fiscal 2004, was for earnings per
diluted share of $0.72 to $0.78 and revenues of $135 to $140
million. Backlog at year-end was $53.1 million compared to $49.1
million at the end of fiscal 2003. Incoming orders were $140.2 for
the year and resulted in a book to ship ratio of 103% for the year.
Outstanding bank debt at the end of the fiscal year was $30.9
million, a decrease of $13.7 million from the year ended February
28, 2003. AZZ's long- term debt to equity ratio of .37 to 1 at the
end of the fiscal year compares favorably to the .60 to 1 for the
same period last year. Revenues for the Electrical and Industrial
Products Segment were $21.5 million for the fourth quarter,
compared to $28.3 million for the comparable period last year.
Operating income for this segment was $1.7 million, compared to
$2.8 million in the fourth quarter of last year. For the fiscal
year ended February 29, 2004, revenues for this segment were $88.9
million and operating income was $6.4 million compared to $134.9
million and $14.9 million, respectively, for the prior fiscal year.
David H. Dingus, president and chief executive officer of AZZ
incorporated commented, "The operating results for the quarter and
year exceeded our internal expectations and earnings guidance we
had previously issued, despite a continuation of the difficult
market conditions and intense competition. We have sized our
operations to reflect these conditions and have continued our
efforts to improve operating efficiencies and financial
performance. Improvement in coverage and participation in the
international electrical markets was a key goal we set for
ourselves. Fiscal 2004 saw some encouraging results in this
program. With our previously announced operating structure in China
and, improved representation in the Middle East and Asia, we are
better positioned to take advantage of these market which are
experiencing growth. We believe all actions that have been taken in
fiscal 2004 do position us to better compete in both domestic and
international markets and we are positioned well to benefit from
sustained recovery in our served markets. Additionally, we did see
improvement in the fourth quarter of our quotation and bookings
activity related to our transmission products, and we are
encouraged by the increased quotation activity." Revenues for the
Company's Galvanizing Services Segment were $11.0 million for the
fourth quarter, compared to $11.5 million in the previous year's
comparable quarter. Operating income for the segment was $2.4
million for the quarter, compared to $ 2.0 million in the previous
year's comparable quarter. For the fiscal year ended February 29,
2004, revenues were $47.3 million and operating income was $8.6
million compared to $48.5 million and $9.0 million, respectively
for the prior fiscal year. Mr. Dingus continued, "Despite the
complexities brought about by the changes in price of steel and
zinc, we had another solid year in our Galvanizing Services
Segment. The decrease in operating income on a year over year basis
can be directly linked to increased cost of natural gas. Going
forward, we will be faced with the potential impact of steel price
increases on our volume levels, and our ability to offset increases
in the cost of zinc with improved efficiency and price increases.
While market conditions may inhibit our ability to fully recover
the anticipated increases, we are anticipating another solid year
of performance from this segment." Mr. Dingus concluded, "Based
upon the evaluation of information currently available to
management, we are estimating FY 2005 earnings to be within the
range of $0.75 to $0.85 per diluted share, and revenues to be
within the range of $140 to $150 million. Included in our projected
earnings is a one-time expenditure of approximately $650,000 to be
expensed during fiscal 2005 associated with the implementation cost
of our ERP system. Anticipated benefits will be realized in FY
2006." AZZ incorporated will conduct a conference call to discuss
financial results for fiscal year 2004 at 4:15 P.M. Eastern on
April 15, 2004. Interested parties can access the conference call
by dialing (877) 356-5706. 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 confirmation
#6286534, or for 30 days at http://www.azz.com/AZZinvest.htm. AZZ
incorporated is a specialty electrical equipment manufacturer
serving the global growth markets of 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 cost, 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 February 29, February 28, February
29, February 28, 2004 2003 2004 2003 (unaudited) (unaudited)
(unaudited) __________ Net sales $32,505 $39,797 $136,201 $183,370
Income before taxes $1,982 $2,357 $6,878 $13,895 Net income $1,228
$1,419 $4,263 $8,615 Net income per share Basic $0.23 $0.27 $0.80
$1.63 Diluted $0.22 $0.27 $0.79 $1.63 Diluted average shares
outstanding 5,476 5,294 5,397 5,300 Condensed Consolidated Balance
Sheet (in thousands) February 29, 2004 February 28, 2003
(unaudited) ________________ Assets: Current assets $43,713 $55,056
Net property, plant and equipment $34,201 $36,612 Other assets, net
$42,112 $42,369 Total assets $120,026 $134,037 Liabilities and
shareholders' equity: Current liabilities $23,504 $31,346 Long term
debt due after one year $25,375 $37,875 Other liabilities $1,850
$1,407 Shareholders' equity $69,297 $63,409 Total liabilities and
shareholders' equity $120,026 $134,037 Condensed Consolidated
Statement of Cash Flow (in thousands) Twelve Months Ended Twelve
Months Ended February 29, 2004 February 28,2003 (unaudited)
_________________ Net cash provided by (used in) operating
activities $14,963 $22,927 Net cash provided by (used in) investing
activities ($2,920) ($3,941) Net cash provided by (used in)
financing activities ($12,582) ($18,740) Net increase (decrease) in
cash and cash equivalents ($539) $246 Cash and cash equivalents at
beginning of year $1,984 $1,738 Cash and cash equivalents at end of
quarter $1,445 $1,984 DATASOURCE: AZZ incorporated CONTACT: Dana
Perry, Vice President - Finance and CFO of AZZ incorporated,
+1-817-810-0095; or Retail, Robert Blum, or Institutional/Analysts,
Joe Dorame, or Media, Kristen Klein, all of RCG Capital Markets
Group, Inc., +1-480-675-0400, for AZZ incorporated Web site:
http://www.azz.com/AZZinvest.htm http://www.azz.com/
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