Slide 1: AZZ Inc. Q2 FY2021 Earnings Release Presentation
AZZ Inc. Q2 FY2021 Earnings Release Presentation October 13, 2020
Slide 2: Safe Harbor Statement
Q2 FY2021 EARNINGS PRESENTATION Safe Harbor Statement 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-lookin
Slide 3: Q2 FY2021 Segment Performance Update
Q2 FY2021 EARNINGS PRESENTATION Q2 FY2021 Segment Performance Update Total Q2 FY2021 Sales: $203.4 million Metal Coatings Infrastructure Segment Solutions Segment $117.0 $86.3 -6.3% vs. Q2 FY2020 -22.5% vs. Q2 FY2020 Segment Updates • Galvanizing operations down 5.9% from strong prior year • Renamed
Slide 4: Q2 FY2021 Summary - Consolidated
Q2 FY2021 EARNINGS PRESENTATION Legend: Q2 FY2021 Summary - Consolidated (r) – Reported (a) – Adjusted In $ millions, except per share amounts Sales Net Income Diluted EPS -13.9% -16.7% (a) / -111.5% (r) -16.9% (a) / -111.9% (r) $236.2 $203.4 $0.59 $0.49 $15.6 $13.0 -$1.80 -$0.07 FY2020 FY2021 FY 20
Slide 5: Q2 FY2021 Segment Results – Metal Coatings
Q2 FY2021 EARNINGS PRESENTATION Legend: Q2 FY2021 Segment Results – Metal Coatings (r) – Reported (a) – Adjusted In $ millions except percentages Sales Operating Income Operating Margin -6.3% -6.3% (a) 0 bps Key Statistics FY2020 Sales $124.8 $124.8 $117.0 $28.7 23.0% 23.0% $26.9 Organic $(10.5) $15
Slide 6: Q2 FY2021 Segment Results – Infrastructure Solutions
Q2 FY2021 EARNINGS PRESENTATION Legend: Q2 FY2021 Segment Results – Infrastructure Solutions (r) – Reported (a) – Adjusted In $ millions except percentages Sales Operating Income Operating Margin -22.5% -26.2% (a) -30 bps (a) Key Statistics FY 2020 Sales $111.3 $111.3 FY2020 Book to Ship 1.01 to 1 $
Slide 7: Q2 FY2021 Consolidated Results
Q2 FY2021 EARNINGS PRESENTATION Q2 FY2021 Consolidated Results In $ millions, except for EPS and Q2 FY 2021 Q2 FY 2021 Q2 FY 2020 % Change percentages Reported Adjusted Adj, vs. Prior Year Sales $203.4 $203.4 $236.2 -13.9% Gross Profit $46.1 $46.1 $52.7 -12.5% Gross Margin 22.7% 22.7% 22.3% 40 bps O
Slide 8: FY 2021 Year-to-date Cash Flow Highlights
Q2 FY2021 EARNINGS PRESENTATION FY 2021 Year-to-date Cash Flow Highlights In $ millions, except for percentages YTD YTD FY 2021 FY 2020 Cash flows used in operating activities $32.2 $38.2 Less: Capital Expenditures $(19.3) $(16.5) Free Cash Flow $12.9 $21.7 Net Income $3.8 $36.8 Free Cash Flow / Net
Slide 9: Capital Allocation Focused on Growth
Q2 FY2021 EARNINGS PRESENTATION Capital Allocation Focused on Growth In $ millions Q2 2021 Capital Deployment • Safety, Health and Environmental, $19.3 Capital COVID • Facility expansion IPG & Galvanizing Expenditures • Product/technology growth initiatives Growth • No year-to-date acquisitions • Pa
Slide 10: Key Indicators and Initiatives
Q2 FY2021 EARNINGS PRESENTATION Key Indicators and Initiatives Metal Coatings Segment • Fabrication activity remains solid for Q3, but hurricane season has some impact on Gulf Coast activity • The cost of zinc in our kettles continues to decline gradually • Powder Coating and Plating customers begin
Slide 11: Strategic Direction
Q2 FY2021 EARNINGS PRESENTATION Strategic Direction • Long term strategy to continue to grow the Metal Coatings segment organically and with a robust acquisition program, while targeting sustainable 21-23% Operating Margins • Focus on operating excellence and providing outstanding customer service •
Slide 12: Q&A
Q&A
Slide 13: Appendix and Additional Information
Appendix and Additional Information
Slide 14: COVID-19 Update
Q2 FY2021 EARNINGS PRESENTATION COVID-19 Update Suspended previously issued FY2021 guidance Impact on Financial Metal Coatings segment - Galvanizing remains resilient Results Infrastructure Solutions - welding solutions business continues to be most affected by COVID-related business disruptio
Slide 15: Non-GAAP Disclosure of EBITDA
Q2 FY2021 EARNINGS PRESENTATION Non-GAAP Disclosure of EBITDA • In addition to reporting financial results in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"), AZZ has provided EBITDA, which are non-GAAP measures. Management believes that the presentation of the
Slide 16: Non-GAAP Disclosure of Consolidated EBITDA
Q2 FY2021 EARNINGS PRESENTATION Non-GAAP Disclosure of Consolidated EBITDA Current Year vs. Prior Year As Reported to As Adjusted In millions Consolidated Consolidated $(millions) except EPS As Reported (a) Adjustment F/N As Adjusted Q2 FY 21 Q2 FY 20 GAAP Net Income $(1.8) $15.6 Sales $ 203.4 $ 203