Slide 1: AZZ Inc. Q4 and Full Year FY2021 Earnings Presentation
AZZ Inc. Q4 and Full Year FY2021 Earnings Presentation April 23, 2021
Slide 2: Safe Harbor Statement
Q4 AND FULL YEAR 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
Slide 3: Fiscal Year 2021 Segment Performance Update
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Performance Update Full Year FY2021 Sales: $838.9 million Metal Infrastructure Coatings Solutions Segment Segment $457.8 $381.1 -8.3% vs. FY2020 -32.3% vs. FY2020 Segment Updates • Overall segment sales down 8.3% compared to prio
Slide 4: Fiscal Year 2021 Summary - Consolidated
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Summary - Consolidated In $ millions, except per share amounts Sales Net Income Diluted EPS -21.0% -17.8% reported; +14.1% adjusted -17.4% reported; +14.7% adjusted $1,061.8 $838.9 $55.0 $48.2 $2.11 $39.6 $1.84 $1.52 FY20 FY21 FY20 FY21
Slide 5: Segment Results – Metal Coatings
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Results – Metal Coatings In $ millions except percentages Sales Operating Income Operating Margin -8.3% -11.1% reported; -1.1% adjusted -60 bps reported; +170 bps adjusted Key Statistics $499.0 FY2020 Sales $499.0 $457.8 $107.9 $
Slide 6: Segment Results – Infrastructure Solutions
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Segment Results – Infrastructure Solutions In $ millions except percentages Sales Operating Income Operating Margin -32.3% -80.2% actual; -52.1% adjusted -410 bps actual; -170 bps adjusted Key Statistics $562.8 FY 2020 Sales $562.8 $381.
Slide 7: Fiscal Year 2022 Full Year Financial Guidance
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2022 Full Year Financial Guidance In millions, except for EPS Key Drivers: FY2022 Range Metal Coatings: Continued operational execution Increasing zinc costs Sales $835 - $935 Infrastructure Solutions: Improving market conditions for re
Slide 8: Q4 FY2021 Consolidated Results
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 FY2021 Consolidated Results In millions, except for EPS and percentages Q4 FY 21 Q4 FY 20 % Reported Reported Change Sales $195.6 $245.4 -20.3% Gross Profit $45.8 $51.1 -10.4% Gross Margin percent 23.4% 20.8% 260 bps Operating Profit $18.8 $(7.3) 358.
Slide 9: Fiscal Year 2021 Consolidated Results
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Consolidated Results In $ millions, except for EPS and FY 2021 FY 2021 FY 2020 FY 2020 percentages Reported Adjusted Reported Adjusted Sales $838.9 $838.9 $1,061.8 $1,061.8 Gross Profit $188.7 $188.7 $237.2 $239.2 Gross Margin 22.5% 22.5
Slide 10: Cash Flow Highlights
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Fiscal Year 2021 Cash Flow Highlights In $ millions, except for percentages FY 2021 FY 2020 Cash flows used in operating activities $92.0 $142.3 Less: Capital Expenditures $(37.1) $(32.6) Free Cash Flow $54.9 $109.7 Net Income $39.6 $48.2 Free Cash Flow
Slide 11: Capital Allocation Focused on Growth
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Capital Allocation Focused on Growth In $ millions Full Year 2021 Capital Deployment $48.3 • Safety, Health and Environmental Capital • Facility expansion & spin plant • Product/technology growth initiatives Expenditures Growth $37.1 • One Metal Coatings
Slide 12: Key Indicators and Initiatives
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Key Indicators and Initiatives Metal Coatings Segment • Cost of zinc in our kettles, which will begin to increase as we enter FY2022, due to higher zinc LME levels • Emphasis on operating efficiency and productivity, supported by Digital Galvanizing Syst
Slide 13: Strategic Direction
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Strategic Direction • Long term strategy to continue to grow the Metal Coatings segment organically and with a robust acquisition program, while maintaining 21 to 23% Operating Margins o Focus on operating excellence and providing outstanding customer se
Slide 14: Q&A
Q&A
Slide 15: Q4 Segment Performance Update
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Performance Update Total Q4 FY2021 Sales: $195.6 million Metal Coatings Infrastructure Segment Solutions $106.1 Segment $89.5 -13.6% vs. prior year -27.0% vs. prior year Market Drivers • Galvanizing sales down 7.2% versus prio
Slide 16: Q4 Summary - Consolidated
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Summary - Consolidated In $millions, except per share amounts Sales Net Income Diluted EPS -20.3% +252.8% Reported; +250.9% Adjusted +253.7% Reported / +251.2% Adjusted $245.4 $0.63 $0.62 $195.6 $16.2 $16.0 -$10.6 FY20 FY21 -$0.41 FY2
Slide 17: Q4 Segment Results – Metal Coatings
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Results – Metal Coatings In millions $ except percentages Sales Operating Income Operating Margin -13.6% +17.7% +670 bps Key Statistics $122.8 $26.6 25.1% FY2020 Sales $122.8 $22.6 $106.1 18.4% Organic -$18.0 Acquisitions $1.3
Slide 18: Q4 Segment Results – Infrastructure Solutions
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal Year 2021 Segment Results – Infrastructure Solutions In millions $ except percentages Revenue Operating Income Operating Margin -27.0% 321.4% Reported and Adjusted +460 bps Reported and Adjusted Key Statistics $122.6 FY20 Revenue $122.6 $89.5 $
Slide 19: Appendix and Additional Information
Appendix and Additional Information
Slide 20: Non-GAAP Disclosure of EBITDA
Q4 AND FULL YEAR 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 belie
Slide 21: Q4 Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Q4 Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA Current Year vs. Prior Year As Reported to As Adjusted In millions Consolidated Consolidated Q4 Consolidated Q4 FY 21 Q4 FY 20 $(millions) except EPS As Reported (a) Adjustment As Adjusted GAAP
Slide 22: Full Year Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA
Q4 AND FULL YEAR FY2021 EARNINGS PRESENTATION Full Year Fiscal 2021 - Non-GAAP Disclosure of Consolidated EBITDA Current Year vs. Prior Year As Reported to As Adjusted In millions Consolidated Consolidated Full Year Consolidated $(millions) except EPS As Reported (a) Adjustment As Adjusted FY 21 FY