Slide 1: AZZ Inc. Q1 FY2022 Earnings Release Presentation
AZZ Inc. Q1 FY2022 Earnings Release Presentation July 9, 2021
Slide 2: Safe Harbor Statement
Q1 FY2022 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: Q1 FY2022 Segment Sales and Market Drivers
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Segment Sales and Market Drivers Total Q1 FY2022 Sales: $229.8 million Metal Coatings Infrastructure Solutions Segment Segment $127.7 $102.1 +7.3% vs. Q1 FY2021 +8.3% vs. Q1 FY2021 Market Drivers • Galvanizing plants performed exceptionally well • Spring tur
Slide 4: Q1 FY2022 Summary - Consolidated
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Summary - Consolidated In $millions, except percentages and per share amounts Sales Net Income Diluted EPS +7.8% +303% 319% $0.88 $229.8 $213.3 $22.3 $0.21 $5.5 FY2021 FY2022 FY2021 FY2022 FY2021 FY2022 • Metal Coatings focusing on service • Metal Coatings m
Slide 5: Segment Results – Metal Coatings
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Segment Results – Metal Coatings In millions $ except percentages Sales Operating Income Operating Margin +7.3% +25.9% Key Statistics +360 bps FY2021 Sales $119.0 $119.0 $127.7 $31.6 24.7% 21.1% $25.1 Organic $6.2 Acquisitions $2.5 FY2022 Sales $127.7 FY2021
Slide 6: Segment Results – Infrastructure Solutions
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Segment Results – Infrastructure Solutions In millions $ except percentages Sales Operating Income Operating Margin Key Statistics +8.3% +1,018% +1,050 bps FY 2021 Sales $94.3 9.4% $102.1 FY2021 Book to Sales .82 to 1 $94.3 $9.6 FY2022 Sales $102.1 FY2022 Bo
Slide 7: FY2022 – Updated Full Year Financial Guidance
Q1 FY2022 EARNINGS PRESENTATION FY2022 – Updated Full Year Financial Guidance Previous Range Updated Range Key Drivers: Metal Coatings: In millions, except for EPS • Volume/mix and steel availability for customers • Ability to realize price as production costs increase Sales $835 - $935 $855 - $935
Slide 8: Consolidated Results
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Consolidated Results In millions, except for EPS and percentages % Change vs. Q1 FY 2022 Q1 FY 2021 Prior Year Sales $229.8 $213.3 7.8% Gross Profit $57.9 $42.2 37.2% Gross Margin 25.2% 19.8% 540 bps Operating Profit $30.7 $14.3 114.5% Operating Margin 13.4%
Slide 9: Cash Flow Highlights
Q1 FY2022 EARNINGS PRESENTATION Q1 FY2022 Cash Flow Highlights In millions, except for percentages Q1 FY 2022 Q1 FY 2021 Cash flows used in operating activities $11.1 $(11.2) Less: Capital Expenditures $(7.5) $(10.8) Free Cash Flow $3.6 $(22.0) Net Income $22.3 $5.5 Free Cash Flow / Net Income 16.1%
Slide 10: Capital Allocation Focused on Growth
Q1 FY2022 EARNINGS PRESENTATION Capital Allocation Focused on Growth In millions Q1 2022 Capital Deployment • Safety, Health and Environmental Capital • Productivity and capacity initiatives Expenditures • General maintenance and sustainability Growth • Active portfolio of acquisition opportunities,
Slide 11: Key Indicators
Key Indicators 11
Slide 12: Key Indicators
Q1 FY2022 EARNINGS PRESENTATION Key Indicators Metal Coatings Segment • Fabrication activity remains solid for Q2; some customers experiencing intermittent steel shortages • Surface Technology customers are returning to normal production levels in most markets • Zinc cost in our kettles continues to
Slide 13: Strategic Direction
Q1 FY2022 EARNINGS PRESENTATION Strategic Direction • The previously announced board-led strategic review of our portfolio and capital allocation is complete • We are actively pursuing multiple recommendations that align with and support our strategy • Long term strategy to continue to grow Metal Co
Slide 14: Q&A
Q&A
Slide 15: Reg G Tables
Reg G Tables
Slide 16: Non-GAAP Disclosure of EBITDA
Q1 FY2022 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 is a non-GAAP measure. Management believes that the presentation of thi
Slide 17: Non-GAAP Disclosure of Consolidated EBITDA
Q1 FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of Consolidated EBITDA In millions Consolidated Consolidated Q1 FY 22 Q1 FY 21 GAAP Net Income $22.3 $5.5 Adjustments to reconcile GAAP to non- GAAP Financial Measures Interest Expense $1.7 $2.6 Income Tax Expense $7.7 $4.7 Depreciation and Amortiz
Slide 18: Non-GAAP Disclosure of Metal Coatings and Infrastructure Solutions EBITDA
Q1 FY2022 EARNINGS PRESENTATION Non-GAAP Disclosure of Metal Coatings and Infrastructure Solutions EBITDA In millions Metal Coatings Metal Coatings Infrastructure Infrastructure Solutions Solutions Q1 FY 22 Q1 FY 21 Q1 FY 22 Q1 FY 21 GAAP Operating Income $31.6 $25.1 $9.6 $(1.0) Adjustments to recon