AZZ AZZ, Inc.
AZZ Inc. provides galvanizing and metal coating services, welding solutions, specialty electrical equipment, and highly engineered services to the power generation, transmission, distribution, refining, and industrial markets. The company operates through two segments, Energy and Metal Coatings. The Energy segment provides specialized products and services designed to support industrial, nuclear, and electrical applications. It offers custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting, nuclear safety-related equipment, and tubular products to multi-national companies and small independent companies. This segment sells its products through manufacturers' representatives, distributors, agents, and internal sales force. The Metal Coatings segment offers hot dip galvanizing and other metal coating applications to the steel fabrication industry. It serves fabricators or manufacturers that provide services to the electrical and telecommunications, bridge and highway, petrochemical, and general industrial markets, as well as original equipment manufacturers. As of February 28, 2019, the company operated 42 metal coating plants located in various locations in the United States and Canada The company was founded in 1956 and is headquartered in Fort Worth, TX.
Company profile
Ticker
AZZ
Exchange
Website
CEO
Thomas E. Ferguson
Employees
Incorporated in
Location
Fiscal year end
Industry (SEC)
Former names
Aztec Manufacturing Co
SEC CIK
Corporate docs
IRS number
750948250
AZZ stock data
()
Calendar
29 Apr 20
2 Jul 20
28 Feb 21
News
Company financial data Financial data
| Quarter (USD) | Feb 20 | Nov 19 | Aug 19 | May 19 | |
|---|---|---|---|---|---|
| Revenue | 245.37M | 291.14M | 236.19M | 289.12M | |
| Net income | -10.64M | 22.04M | 15.56M | 21.28M | |
| Diluted EPS | -0.41 | 0.84 | 0.59 | 0.81 | |
| Net profit margin | -4.34% | 7.57% | 6.59% | 7.36% | |
| Operating income | -7.27M | 33.43M | 22.21M | 30.97M | |
| Net change in cash | 22.4M | 706K | -3K | -10.42M | |
| Cash on hand | 36.69M | 14.29M | 13.58M | 13.59M | |
| Cost of revenue | 223.81M | 183.5M | 223.02M |
| Annual (USD) | Feb 20 | Feb 19 | Feb 18 | Feb 17 | |
|---|---|---|---|---|---|
| Revenue | 1.06B | 927.09M | 810.43M | 863.54M | |
| Net income | 48.23M | 51.21M | 45.17M | 61.26M | |
| Diluted EPS | 1.84 | 1.96 | 1.73 | 2.35 | |
| Net profit margin | 4.54% | 5.52% | 5.57% | 7.09% | |
| Operating income | 79.34M | 76.96M | 48.25M | 98.91M | |
| Net change in cash | 12.68M | 3.15M | 9.55M | -28.89M | |
| Cash on hand | 36.69M | 24.01M | 20.85M | 11.3M | |
| Cost of revenue | 824.59M | 728.47M | 650.12M | 658.21M |
Financial data from AZZ earnings reports
Recent insider trades
| Date | Owner | Security | Transaction | Code | $Price | #Shares | $Value | #Remaining |
|---|---|---|---|---|---|---|---|---|
| 22 May 20 | Bacius Chris M. | COMMON STOCK | Option exercise | Aquire M | 0 | 861 | 0 | 10,885 |
| 22 May 20 | Emery Matthew Varley | COMMON STOCK | Payment of exercise | Dispose F | 31.28 | 213 | 6.66K | 8,471 |
| 22 May 20 | Emery Matthew Varley | COMMON STOCK | Option exercise | Aquire M | 0 | 861 | 0 | 8,669 |
| 22 May 20 | Emery Matthew Varley | RSU COMMON STOCK | Option exercise | Dispose M | 0 | 861 | 0 | 1,723 |
| 22 May 20 | Doucet Michael | COMMON STOCK | Payment of exercise | Dispose F | 31.28 | 93 | 2.91K | 2,259 |
| 22 May 20 | Doucet Michael | COMMON STOCK | Option exercise | Aquire M | 0 | 6 | 0 | 2,352 |
| 22 May 20 | Doucet Michael | COMMON STOCK | Option exercise | Aquire M | 0 | 382 | 0 | 2,346 |
| 22 May 20 | Doucet Michael | RSU COMMON STOCK | Option exercise | Dispose M | 0 | 382 | 0 | 766 |
| 22 May 20 | Bacius Chris M. | COMMON STOCK | Payment of exercise | Dispose F | 31.28 | 213 | 6.66K | 10,687 |
| 22 May 20 | Bacius Chris M. | COMMON STOCK | Option exercise | Aquire M | 0 | 15 | 0 | 10,900 |
Institutional ownership Q1 2020
86.9% owned by funds/institutions
13F holders |
Current |
|---|---|
| Total holders | 160 |
| Opened positions | 23 |
| Closed positions | 36 |
| Increased positions | 59 |
| Reduced positions | 52 |
13F shares |
Current |
|---|---|
| Total value | 639.07M |
| Total shares | 22.72M |
| Total puts | 10.7K |
| Total calls | 43.1K |
| Total put/call ratio | 0.2 |
Largest owners |
Shares | Value |
|---|---|---|
| BLK BlackRock | 4.07M | $114.39M |
| Vanguard | 2.79M | $78.37M |
| N Price T Rowe Associates | 1.99M | $55.91M |
| Van Berkom & Associates | 1.71M | $48.04M |
| Dimensional Fund Advisors | 1.19M | $33.46M |
| STT State Street | 857.81K | $24.12M |
| Victory Capital Management | 700.18K | $19.69M |
| FMR | 651.65K | $18.32M |
| Nuveen Asset Management | 629.41K | $17.7M |
| Aristotle Capital Boston | 429.92K | $12.09M |
Financial report summary
?Risks
- Our business segments operate in highly competitive markets.
- Our operating results may vary significantly from quarter to quarter.
- We may be unsuccessful at implementing and generating internal growth from our Strategic Growth Initiatives.
- The departure of key personnel could disrupt our business.
- Our business requires skilled labor, and we may be unable to attract and retain qualified employees.
- Actual and potential claims, lawsuits, and proceedings could ultimately reduce our profitability and liquidity and negatively impact our financial condition.
- Technological innovations by competitors may make existing products and production methods obsolete.
- Catastrophic events could have a material adverse effect on our business, financial condition, results of operations, or cash flows.
- Our operations could be adversely impacted by the effects of future changes to the law and government regulations regarding emissions, the global environment and other sustainability matters.
- New regulations related to conflict minerals could adversely impact our business.
- Our business segments are sensitive to economic downturns.
- International events and political issues may adversely affect our Energy and Metal Coatings segments.
- Fluctuations in the price and supply of raw materials and natural gas for our business segments may adversely affect our operations.
- Climate change could impact our business.
- Changes in greenhouse gas regulations could impact our operating results.
- Our volume of fixed-price contracts for our Energy segment could adversely affect our business.
- Our use of over time revenue accounting in the Energy segment could result in a reduction or elimination of previously reported profits.
- We may not be able to fully realize the revenue value reported in our backlog for our Energy segment.
- Adoption of new or revised employment and labor laws and regulations could make it easier for our employees to obtain union representation and our business could be adversely impacted.
- A failure in our operational systems or cyber security attacks on any of our facilities, or those of third parties, may
- affect adversely our financial results.
- We could face significant liabilities for withdrawal from Multiemployer Pension Plans.
- We have identified a material weakness in our internal control over financial reporting which could, if not remediated, adversely affect investor confidence in our company, the value of our common stock and our ability to report our financial condition and results of operations in a timely and accurate manner.
Management Discussion
- For the fiscal year ended February 29, 2020, we recorded net sales of $1,061.8 million compared to prior year’s net sales of $927.1 million. Of total net sales for fiscal 2020, approximately 47.0% were generated from the Metal Coatings segment and approximately 53.0% of our net sales were generated from the Energy segment. Net income for fiscal 2020 was $48.2 million compared to $51.2 million for fiscal 2019. Net income as a percentage of net sales was 4.5% for fiscal 2020 as compared to 5.5% for fiscal 2019. Earnings per share decreased by 6.1% to $1.84 per share for fiscal 2020 compared to $1.96 per share for fiscal 2019, on a diluted basis.
- The results for fiscal 2020 include a loss on divestiture of $18.6 million related to the sale of our nuclear logistics business and impairment charges of $9.2 million related to the exit from the nuclear certified portion of our industrial welding solutions business.
- Our entire backlog, which is inclusive of transaction taxes for certain foreign subsidiaries, relates to our Energy segment. We ended fiscal 2020 with a backlog of $243.8 million, a decrease of $89.1 million or 26.8% compared to fiscal 2019. The book to revenue ratio decreased in fiscal 2020 as compared to fiscal 2019. The book to revenue ratio was 0.92 to 1 for fiscal 2020 and 1.07 to 1 for fiscal 2019. The reduction in book to revenue ratio in fiscal 2020 resulted from a current year reduction in backlog in China as we completed several large orders received in prior years.
Content analysis
?
| Positive | ||
| Negative | ||
| Uncertain | ||
| Constraining | ||
| Legalese | ||
| Litigous | ||
| Readability |
H.S. sophomore Avg
|
|
New words:
accuracy, addressed, addressing, advantage, Agency, Aid, alter, assertion, ATI, automotive, broadened, brought, capability, care, CISA, clarifying, Cloud, CODM, composition, conjunction, Crane, Cybersecurity, divest, divesting, effort, emergency, epidemic, exceeding, Exterran, feet, forty, forward, foundation, galvabar, globe, Homeland, hosting, HVAC, immaterial, inclusive, inconsistent, incorrectly, indemnity, input, inquired, inspecting, install, issuable, judgement, knowledge, lapse, length, lesser, lightly, logistic, maker, marine, Maryland, mutually, network, NuZinc, opposed, Organization, outlook, outright, pandemic, paragraph, Parker, point, Preferred, preliminary, presence, preserve, pressure, proceeding, procure, prolonged, PSU, reclassified, recommended, recomputed, RSU, sample, satisfactorily, seasonality, SecretaryChief, shelf, shelter, situation, software, Southwest, specialist, spread, square, statute, strain, stronger, substance, substantive, successfully, SuperMedia, surface, suspension, team, temporarily, Thornton, travel, unique, unstable, unvested, viral, world
Removed:
acquire, Africa, armed, ASC, attractive, BDO, carryforward, certification, classification, cliff, commencing, country, deepwater, East, Eastern, entity, exploration, expose, integrator, lawsuit, majeure, manufacturer, Middle, Millington, Northern, occurring, offshore, optimize, PEI, realignment, refinery, reimbursement, release, seaboard, solar, spend, subheading, succeeding, thereon, undistributed, USA, weaken, Zalk
Financial reports
10-K
2020 FY
Annual report
29 Apr 20
10-Q
2020 Q3
Quarterly report
9 Jan 20
10-Q
2020 Q2
Quarterly report
26 Dec 19
10-Q
2020 Q1
Quarterly report
8 Jul 19
10-K
2019 FY
Annual report
17 May 19
10-Q
2019 Q3
Quarterly report
8 Jan 19
10-Q
2019 Q2
Quarterly report
9 Oct 18
10-Q
2019 Q1
Quarterly report
3 Jul 18
10-K
2018 FY
Annual report
15 May 18
10-Q
2018 Q3
Quarterly report
15 May 18
Current reports
8-K
AZZ Inc. Announces Fiscal Year 2021 First Quarter
2 Jul 20
8-K
AZZ Inc. Announces Departure of Paul W. Fehlman and Appoints Philip Schlom as Interim Chief Financial Officer
4 May 20
8-K
AZZ Inc. Reports Financial Results for Fiscal Year 2020
29 Apr 20
8-K
AZZ Inc. Announces Quarterly Cash Dividend
22 Apr 20
8-K
AZZ Inc. Announces the Divestiture of its Nuclear Logistics LLC Operating Business to Paragon Energy Solutions
11 Feb 20
8-K
AZZ Inc. Investor Presentation February, 2020
5 Feb 20
8-K
Revenue of $970 Million – $1.06 Billion and Earnings
27 Jan 20
8-K
AZZ Inc. Announces Quarterly Cash Dividend
17 Jan 20
8-K
Departure of Directors or Certain Officers
10 Jan 20
8-K
AZZ Inc. Reports Financial Results for the Third Quarter of Fiscal Year 2020
9 Jan 20
Registration and prospectus
S-8
Registration of securities for employees
1 Feb 19
S-8
Registration of securities for employees
27 Jul 18
S-8
Registration of securities for employees
9 Jul 14
SC TO-T/A
Third party tender offer statement (amended)
15 Jun 10
SC TO-T/A
Third party tender offer statement (amended)
8 Jun 10
SC TO-T
Third party tender offer statement
7 May 10
S-8
Registration of securities for employees
12 Aug 08
S-8
Registration of securities for employees
12 Aug 08
S-8
Registration of securities for employees
17 Jan 06
S-8
Registration of securities for employees
21 Jun 02
Proxies
DEFA14A
Additional proxy soliciting materials
27 May 20
DEF 14A
Definitive proxy
27 May 20
DEFA14A
Additional proxy soliciting materials
28 May 19
DEF 14A
Definitive proxy
28 May 19
DEFA14A
Additional proxy soliciting materials
5 Jun 18
DEF 14A
Definitive proxy
25 May 18
DEF 14A
Definitive proxy
24 May 17
DEF 14A
Definitive proxy
23 May 16
DEF 14A
Definitive proxy
28 May 15
DEF 14A
Definitive proxy
29 May 14
Other
SD
Conflict minerals disclosure
29 May 20
SD
Conflict minerals disclosure
31 May 19
SD
Conflict minerals disclosure
31 May 18
SD
Conflict minerals disclosure
25 May 17
SD
Conflict minerals disclosure
25 May 16
UPLOAD
Letter from SEC
21 Oct 14
CORRESP
Correspondence with SEC
14 Oct 14
UPLOAD
Letter from SEC
2 Oct 14
UPLOAD
Letter from SEC
12 Feb 14
CORRESP
Correspondence with SEC
10 Feb 14
Ownership
4
AZZ / Bryan Lee Stovall ownership change
26 May 20
4
AZZ / Tara D Mackey ownership change
26 May 20
4
AZZ / Ken Lavelle ownership change
26 May 20
4
AZZ / Gary L. Hill ownership change
26 May 20
4
AZZ / THOMAS E FERGUSON ownership change
26 May 20
4
AZZ / MATTHEW VARLEY EMERY ownership change
26 May 20
4
AZZ / Michael Doucet ownership change
26 May 20
4
AZZ / Chris M. Bacius ownership change
26 May 20
4
AZZ / Bryan Lee Stovall ownership change
19 May 20
4
AZZ / Tara D Mackey ownership change
19 May 20