Azz Inc. · NYSE:AZZ
Azz — Q3 FY2022 Earnings Presentation
16 slides from Azz's earnings presentation, Jan 10, 2022
Slide 1: AZZ Inc. Q3 FY2022 Earnings Release Presentation
AZZ Inc. Q3 FY2022 Earnings Release Presentation January 10, 2022
Slide 2: Safe Harbor Statement
Q3 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: Q3 FY2022 Segment Performance Update
Q3 FY2022 EARNINGS PRESENTATION Q3 FY2022 Segment Performance Update Total Q3 FY2022 Sales: $231.7 million Segment Updates Metal Coatings Segment $133 Infrastructure Solutions Segment $98 • Metal Coatings sales up $17.8M on strong demand for galvanizing from renewables, utility, OEM, and constructio
Slide 4: Q3 FY2022 Summary - Consolidated
Q3 FY2022 EARNINGS PRESENTATION Sales Net Income Diluted EPS Q3 FY2022 Summary - Consolidated $226.6 $231.7 FY2021 FY2022 +2.3% • Higher Metal Coatings segment sales • Continued price realization • Metal Coatings continued strength • Lower SG&A and improved operating income within Infrastructure Sol
Slide 5: Segment Results – Metal Coatings
Q3 FY2022 EARNINGS PRESENTATION Q3 FY2022 Segment Results – Metal Coatings • Segment sales up 15.4% from prior year on higher volumes of steel galvanized and price inflation • End markets continuing to demonstrate strength include renewables, construction, utility, and OEM • Overall segment operatin
Slide 6: Segment Results – Infrastructure Solutions
Q3 FY2022 EARNINGS PRESENTATION Q3 FY2022 Segment Results – Infrastructure Solutions • Backlog improving on stronger U.S. domestic bookings as Switchgear and Enclosure bookings more than offsets China backlog reductions • Sales decline of $12.6 million primarily related to lower Industrial Platform
Slide 7: FY2022 – Updated Full Year Financial Guidance
Q3 FY2022 EARNINGS PRESENTATION FY2022 – Updated Full Year Financial Guidance Key Drivers: Metal Coatings: • Volume/mix and severity of winter weather conditions • Ability to realize price as production costs increase • Successfully integrate acquisitions to achieve expected benefits Infrastructure
Slide 8: Consolidated Results
Q3 FY2022 EARNINGS PRESENTATION Q3 FY2022 Consolidated Results In $ millions, except for EPS and percentages Q3 FY 2022 Q3 FY 2021 Reported (r) Q3 FY 2021 Adjusted (a) % Change, vs. Prior Year (a) Sales $231.7 $226.6 $226.6 2.3% Gross Profit $57.0 $54.7 $54.7 4.2% Gross Margin 24.6% 24.1% 24.1% 50 b
Slide 9: FY 2022 Year-to-date Cash Flow Highlights
Q3 FY2022 EARNINGS PRESENTATION FY 2022 Year-to-date Cash Flow Highlights In $ millions, except for percentages YTD FY 2022 YTD FY 2021 Cash flows used in operating activities $49.7 $59.4 Less: Capital Expenditures $(19.1) $(27.9) Free Cash Flow $30.6 $31.5 Net Income $62.4 $23.5 Free Cash Flow / Ne
Slide 10: Capital Allocation Focused on Growth
Q3 FY2022 EARNINGS PRESENTATION Capital Allocation Focused on Growth $6.0 $0.0 $7.6 $4.2 Capital Expenditures Acquisitions Share Repurchases Dividends Capital Expenditures Acquisitions Share Repurchases Dividends Q3 2022 Capital Deployment In $ millions • Safety, Health and Environmental • Facility
Slide 11: Key Indicators
Q3 FY2022 EARNINGS PRESENTATION 11 Metal Coatings Segment Fabrication activity remains solid for Q4 of fiscal year 2022; Potential for seasonal delays due to inclement weather Zinc cost in our kettles continues to increase Infrastructure Solutions Segment Industrial platform • Craft deployed t
Slide 12: Strategic review complete; growth and shareholder value initiatives
Q3 FY2022 EARNINGS PRESENTATION • The previously announced board-led strategic review of our portfolio and capital allocation is complete • We continue to actively pursue initiatives to drive growth and enhance shareholder value. Previously, we have disclosed a desire for AZZ to become a predominate
Slide 13: Q&A
Q&A
Slide 14: Appendix and Additional Information
Appendix and Additional Information
Slide 15: Non-GAAP Disclosure of EBITDA
Q3 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
Q3 FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of Consolidated EBITDA 16 Legend: (r) – Reported (a) – Adjusted Current Year vs. Prior Year As Reported Fiscal 2021 (prior year) As Reported to As Adjusted In millions Consolidated Q3 FY 2022 Consolidated Q3 FY 2021 GAAP Net Income $21.1 $19.7 Adju