Attached files
| file | filename |
|---|---|
| 8-K - AZZ INC | azzform8kq4.htm |
| EX-99.2 - FINANCIAL AND OTHER STATISTICAL INFO - AZZ INC | q4financialinfo.htm |
May 2011
2
2
Certain statements herein about our expectations of future events or results constitute forward-looking
statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of
1995. You can identify forward-looking statements by terminology such as, “may,” “should,” “expects, “
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of
these terms or other comparable terminology. Such forward-looking statements are based on currently
available competitive, financial and economic data and management’s views and assumptions regarding
future events. Such forward-looking statements are inherently uncertain, and investors must recognize
that actual results may differ from those expressed or implied in the forward-looking statements. In
addition, certain factors could affect the outcome of the matters described herein. This presentation may
contain forward-looking statements that involve risks and uncertainties including, but not limited to,
changes in customer demand and response to products and services offered by AZZ, 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 that AZZ serves, foreign and domestic, customer request delays of shipments,
acquisition opportunities, currency exchange rates, adequacy of financing, and availability of
experienced management employees to implement AZZ’s growth strategy. AZZ has provided additional
information regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the
fiscal year ended February 28, 2010 and other filings with the SEC, available for viewing on AZZ’s
website at www.azz.com and on the SEC’s website at www.sec.gov.
statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of
1995. You can identify forward-looking statements by terminology such as, “may,” “should,” “expects, “
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” or the negative of
these terms or other comparable terminology. Such forward-looking statements are based on currently
available competitive, financial and economic data and management’s views and assumptions regarding
future events. Such forward-looking statements are inherently uncertain, and investors must recognize
that actual results may differ from those expressed or implied in the forward-looking statements. In
addition, certain factors could affect the outcome of the matters described herein. This presentation may
contain forward-looking statements that involve risks and uncertainties including, but not limited to,
changes in customer demand and response to products and services offered by AZZ, 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 that AZZ serves, foreign and domestic, customer request delays of shipments,
acquisition opportunities, currency exchange rates, adequacy of financing, and availability of
experienced management employees to implement AZZ’s growth strategy. AZZ has provided additional
information regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the
fiscal year ended February 28, 2010 and other filings with the SEC, available for viewing on AZZ’s
website at www.azz.com and on the SEC’s website at www.sec.gov.
You are urged to consider these factors carefully in evaluating the forward-looking statements herein
and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in
their entirety by this cautionary statement. These statements are based on information as of the
date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a
result of new information, future events, or otherwise.
and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in
their entirety by this cautionary statement. These statements are based on information as of the
date hereof and AZZ assumes no obligation to update any forward-looking statements, whether as a
result of new information, future events, or otherwise.
Forward Looking Statement
3
3
AZZ is a specialty electrical equipment
manufacturer serving the global markets of
power generation, transmission, distribution and
industrial as well as a leading provider of hot dip
galvanizing services to the steel fabrication
market nationwide.
manufacturer serving the global markets of
power generation, transmission, distribution and
industrial as well as a leading provider of hot dip
galvanizing services to the steel fabrication
market nationwide.
Company Overview
4
Total Company
Sales By Segment
Sales By Segment
43%
57%
57%
43%
Actual
FY2010
$357
(in millions)
Actual
FY2011
$381
(in millions)
Projected
FY2012
$425 to $450
(in millions)
60%
40%
Galvanizing
Electrical and Industrial
4
Total Company
Sales By Market Segment
Sales By Market Segment
Actual
FY2010
$357
(in millions)
Actual
FY2011
$381
(in millions)
Projected
FY2012
$425 to $450
(in millions)
5
6
Electrical and Industrial Products
6
7
Electrical and Industrial Products
Actual
FY2010
$203.5
(in millions)
Actual
FY2011
$163
(in millions)
Projected
FY2012
$170 to $185
(in millions)
7
8
Power Generation
8
9
Power Transmission
9
10
Power Distribution
10
11
Industrial / Commercial
11
12
12
Backlog
($ In Millions)
13
13
Backlog
($ In Millions)
|
|
Fiscal
2010 |
1st Qtr
2011 |
2nd Qtr
2011 |
3rd Qtr
2011
|
4th Qtr
2011 |
Fiscal
2011 |
|
Beginning
Backlog |
$174.8
|
$109.9
|
$110.0
|
$106.4
|
$101.7
|
$109.9
|
|
Bookings
|
$292.1
|
$78.6
|
$95.0
|
$98.1
|
$107.4
|
379.1
|
|
Shipments
|
$357.0
|
$77.5
|
$99.6
|
$102.8
|
$100.7
|
$380.6
|
|
Ending
Backlog |
$109.9
|
$111.0
|
$106.4
|
$101.7
|
$108.4
|
$108.4
|
|
Book to Ship
Ratio |
82%
|
101%
|
95%
|
95%
|
107%
|
100%
|
Galvanizing Services
15
Application: “After-fabrication”
steel corrosion protection
steel corrosion protection
Locations: 33 facilities in 17 states
15
16
16
Galvanizing Services
Actual
FY2011
$218
(in millions)
Projected
FY2012
$255 to $265
(in millions)
Consolidated Net Sales
($ In Millions)
($ In Millions)
$425 to
$450
$450
18
Earnings Per Share
(Fully Diluted)
(Fully Diluted)
$2.70 to
$3.05
$3.05
19
19
Operating Margins
Cash Provided By Operations / EBITDA /
Free Cash Flow
($ In Millions)
Free Cash Flow
($ In Millions)
Projected
21
Projected Debt
Projected Debt to Equity Ratio
Projected Cash
Fiscal Year
Capital Expenditures / Depreciation
($ In Millions)
($ In Millions)
$21.0
23
Return On Assets
24
24
Investment Summary
• Strong Historical Performance
• FY11 is the 24th consecutive year of profitability
• 5 Yr CAGR - Revenues 15%, Net Income 35%, EPS 32%
• Significant Operating Margins (above industry averages)
• Key Growth Drivers
• Domestic & international demand for electrical power and energy
• U.S. infrastructure investment
• Niche products and value added services with strong market share
position
position
• Strong Management Team
• Successful acquisition track record and opportunities for further
expansion and growth
expansion and growth
• Strong balance sheet and cash flows
• Cash Dividend
May 2011