Slide 1: AZZ Inc. Q3 FY2021 Earnings Release Presentation
AZZ Inc. Q3 FY2021 Earnings Release Presentation January 11, 2021
Slide 2: Safe Harbor Statement
Q3 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: Q3 FY2021 Segment Performance Update
Q3 FY2021 EARNINGS PRESENTATION Q3 FY2021 Segment Performance Update Total Q3 FY2021 Sales: $226.6 million Metal Infrastructure Coatings Solutions Segment Segment $115.6 -10.5% vs. Q3 FY2020 $111.0 -31.5% vs. Q3 FY2020 Segment Updates • Increased COVID-19 cases drove more state lockdowns • Announced
Slide 4: Q3 FY2021 Summary - Consolidated
Q3 FY2021 EARNINGS PRESENTATION Q3 FY2021 Summary - Consolidated In $ millions, except per share amounts Sales Net Income Diluted EPS -22.2% -10.6% -9.5% $291.1 $0.84 $0.76 $226.6 $22.0 $19.7 FY2020 FY2021 FY 2020 FY2021 FY 2020 FY2021 • Galvanizing sales off 8.8% in quarter • FY21 includes $1.6m of
Slide 5: Segment Results – Metal Coatings
Q3 FY2021 EARNINGS PRESENTATION Q3 FY2021 Segment Results – Metal Coatings In $ millions except percentages Sales Operating Income Operating Margin -10.5% +5.2% +370 bps Key Statistics $129.2 24.8% FY2020 Sales $129.2 $115.6 $27.3 $28.7 21.1% Organic $(14.6) Acquisitions $1.0 FY2021 Sales $115.6 FY2
Slide 6: Segment Results – Infrastructure Solutions
Q3 FY2021 EARNINGS PRESENTATION Q3 FY2021 Segment Results – Infrastructure Solutions In $ millions except percentages Sales Operating Income Operating Margin -31.5% -49.9% -290 bps Key Statistics $161.9 $17.4 FY 2020 Sales $161.9 $111.0 FY2020 Book to Ship 0.91 to 1 $8.7 10.8% 7.9% FY2021 Sales $111
Slide 7: Consolidated Results
Q3 FY2021 EARNINGS PRESENTATION Q3 FY2021 Consolidated Results In $ millions, except for EPS and Q3 FY 2021 Q3 FY 2020 % Change percentages vs. Prior Year Sales $226.6 $291.1 -22.2% Gross Profit $54.7 $67.3 -18.8% Gross Margin 24.1% 23.1% 100 bps Operating Profit $27.9 $33.4 -16.6% Operating Margin
Slide 8: FY 2021 Year-to-date Cash Flow Highlights
Q3 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 $59.4 $72.1 Less: Capital Expenditures $(27.9) $(22.5) Free Cash Flow $31.5 $49.6 Net Income $23.5 $58.9 Free Cash Flow / Ne
Slide 9: Capital Allocation Focused on Growth
Q3 FY2021 EARNINGS PRESENTATION Capital Allocation Focused on Growth In $ millions YTD 2021 Capital Deployment • Safety, Health and Environmental Capital • Facility expansion & spin plant • Product/technology growth initiatives Expenditures Growth $31.0 • No acquisitions through Q3 • Announced acqui
Slide 10: Key Indicators and Initiatives
Q3 FY2021 EARNINGS PRESENTATION Key Indicators and Initiatives Metal Coatings Segment • Post-fabricated metal products industry expected to grow in 2021 as COVID-19 comes under control • The cost of zinc in our kettles will begin to increase as we enter FY2022, due to higher zinc LME price levels •
Slide 11: Strategic Direction
Q3 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 o Focus on operating excellence and providing outstanding customer service o
Slide 12: Q&A
Q&A
Slide 13: Appendix and Additional Information
Appendix and Additional Information
Slide 14: Non-GAAP Disclosure of EBITDA
Q3 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 and Adjusted EBITDA, which are non-GAAP measures. Management believes that the
Slide 15: Non-GAAP Disclosure of Consolidated EBITDA
Q3 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 Q3 FY 21 Q3 FY 20 GAAP Net Income $19.7 $22.0 Sales $ 226.6 - $ 22