Azz Inc. · NYSE:AZZ
Azz — Q2 FY2022 Earnings Presentation
16 slides from Azz's earnings presentation, Oct 12, 2021
Slide 1: AZZ Inc. Q2 FY2022 Earnings Release Presentation
AZZ Inc. Q2 FY2022 Earnings Release Presentation October 12, 2021
Slide 2: Safe Harbor Statement
Q2 FY2022 EARNINGS PRESENTATION Safe Harbor Statement 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-look
Slide 3: Q2 FY2022 Segment Performance Update
Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Performance Update Total Q2 FY2022 Sales: $216.4 million Segment Updates Metal Coatings Segment $129.6 Infrastructure Solutions Segment $86.8 • Sales up over prior year, on strong demand from agriculture, recreation, solar, bridge and highway, and OE
Slide 4: Q2 FY2022 Summary - Consolidated
Q2 FY2022 EARNINGS PRESENTATION Sales Net Income Diluted EPS Q2 FY2022 Summary - Consolidated $203.4 $216.4 FY2021 FY2022 +6.4% • Higher Metal Coatings segment sales • Price realization • Electrical demand continues to grow • Metal Coatings strength • Businesses benefitting from realignment actions
Slide 5: Segment Results – Metal Coatings
Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Results – Metal Coatings • Segment sales up 10.7% from prior year quarter, driven by strong growth in several end markets including solar, agriculture, bridge and highway, and OEM • Overall segment operating margins of 24.4%, compared to 23.0% in the
Slide 6: Segment Results – Infrastructure Solutions
Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Segment Results – Infrastructure Solutions • Backlog increasing on stronger U.S. domestic bookings as the Electrical Platform replaces China backlog • Q2 sales, excluding SMS divestiture, were up 4.3% • Electrical sales improved from same quarter, prior year
Slide 7: FY2022 – Updated Full Year Financial Guidance
Q2 FY2022 EARNINGS PRESENTATION FY2022 – Updated Full Year Financial Guidance Key Drivers: Metal Coatings: • Volume/mix and steel availability for customers • Ability to realize price as production costs increase Infrastructure Solutions: • Refining end-market showing improvement • Orders for Electr
Slide 8: Consolidated Results
Q2 FY2022 EARNINGS PRESENTATION Q2 FY2022 Consolidated Results In $ millions, except for EPS and percentages Q2 FY 2022 Q2 FY 2021 Reported Q2 FY 2021 Adjusted % Change, vs. Prior Year (a) Sales $216.4 $203.4 $203.4 6.4% Gross Profit $55.1 $46.1 $46.1 19.6% Gross Margin 25.5% 22.7% 22.7% 280 bps Ope
Slide 9: FY 2022 Year-to-date Cash Flow Highlights
Q2 FY2022 EARNINGS PRESENTATION FY 2022 Year-to-date Cash Flow Highlights In $ millions, except for percentages YTD FY 2022 YTD FY 2021 (a) YTD FY 2021 (r) Cash flows used in operating activities $37.8 $32.2 $32.2 Less: Capital Expenditures $(13.1) $(19.3) $(19.3) Free Cash Flow $24.7 $12.9 $12.9 Ne
Slide 10: Capital Allocation Focused on Growth
Q2 FY2022 EARNINGS PRESENTATION Capital Allocation Focused on Growth $5.1 $0.0 $15.0 $4.3 Capital Expenditures Acquisitions Share Repurchases Dividends Capital Expenditures Acquisitions Share Repurchases Dividends Q2 2022 Capital Deployment In $ millions • Safety, Health and Environmental • Facility
Slide 11: Key Indicators: Metal Coatings and Infrastructure Solutions
Q2 FY2022 EARNINGS PRESENTATION 11 Metal Coatings Segment Fabrication activity remains solid for Q3; some customers experiencing intermittent steel shortages. Active hurricane season in gulf states having some effect on customers Zinc cost in our kettles continues to rise Infrastructure Solution
Slide 12: Strategic Review Complete; Focus on Metal Coatings
Q2 FY2022 EARNINGS PRESENTATION • The previously announced board-led strategic review of our portfolio and capital allocation is complete • With respect to strategic alternatives for AIS, we continue to explore a small number of specific opportunities with the expectation that AZZ will become a focu
Slide 13: Q&A
Q&A
Slide 14: Appendix and Additional Information
Appendix and Additional Information
Slide 15: Non-GAAP Disclosure of EBITDA
Q2 FY2022 EARNINGS PRESENTATION • 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 these measures provides investors
Slide 16: Non-GAAP Disclosure of Consolidated EBITDA
Q2 FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of Consolidated EBITDA 16 In millions Consolidated Q2 FY 22 Consolidated Q2 FY 21 GAAP Net Income $19.0 $(1.8) Adjustments to reconcile GAAP to non- GAAP Financial Measures Interest Expense $1.7 $2.5 Income Tax Expense $4.9 $(0.1) Depreciation and