Slide 1: Fiscal Year 2020 First Quarter Earnings Release Conference Call
Fiscal Year 2020 First Quarter Earnings Release Conference Call July 8, 2019
Slide 2: Safe Harbor Statement
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-looking statements by terminology suc
Slide 3: First Quarter Fiscal Year 2020 Consolidated Highlights
First Quarter Fiscal Year 2020 Consolidated Highlights • Earnings per share of $0.81, up 35% from prior year • Revenues up 10.3% to $289.1 million compared to prior year • Net Income of $21.3 million, up 35.4% from prior year • Energy Segment revenues up 13.6% year-over-year, with operating margin o
Slide 4: Q1 Fiscal Year 2020 Highlights
Q1 Fiscal Year 2020 Highlights • Improved operational execution, price realization, lower zinc costs, and contributions from recent acquisitions helped to drive Metal Coatings revenue and margin increases • Normal seasonal domestic refinery turnaround activity, but there was no repeat of a large int
Slide 5: Total Company Revenue by Market
Total Company Revenue by Market Industrial - General Industry, Oil & Gas, Construction Transmission & Distribution Power Generation 20% 18% FY 2020 Expectation 60% 25% 57% Industrial 20% T&D Power Gen Q1 FY2019 Q1 FY2020 $262 million $289 million 5
Slide 6: Reaffirming FY 2020 Guidance
Reaffirming FY 2020 Guidance FY 2020 Revenue $950 - $1,030 million Earnings per share $2.25 - $2.75 • Business Units are, generally, performing as expected Metal Coatings - Stronger Revenue due to price realization and contribution from AZZ Surface Technologies Energy - Revenue increases in Chin
Slide 7: Q1 FY 2020 Consolidated Results
Q1 FY 2020 Consolidated Results (Millions Except for EPS and %) Q1 FY 2020 Q1 FY 2019 % change Revenue $289.1 $262.2 10.3% Gross Profit $66.1 $58.7 12.6% Gross Margin 22.9% 22.4% Operating Profit $31.0 $23.7 30.7% Operating Margin 10.7% 9.0% Net Income (Loss) $21.3 $15.7 35.4% Diluted EPS $0.81 $0.6
Slide 8: Q1 FY 2020 Segment Results
Q1 FY 2020 Segment Results (Millions except for %) Energy Metal Coatings Segment Segment Q1 FY 2020 Revenue $167.0 $122.2 Operating Income $12.6 $29.4 Operating Margin 7.5% 24.1% Q1 FY 2019 Revenue $147.0 $115.3 Operating Income (Loss) $10.0 $25.2 Operating Margin 6.8% 21.9% 8
Slide 9: YTD FY 2020 Cash Flow Highlights
YTD FY 2020 Cash Flow Highlights (Millions except for %) YTD FY20 YTD FY19 Cash flows provided by operating activities $(18.6) $(12.4) Less: Capital Expenditures $(4.7) $(2.8) Free Cash Flow $(23.3) $(15.2) Net Income $21.3 $15.7 Free Cash Flow/Net Income (109.4)% (96.8)% Acquisition of subsidiaries
Slide 10: FY 2020 Risks
FY 2020 Risks • Several risks identified for the year still exist, but did not emerge during the first quarter: • Metal Coatings – improved pricing and operational initiatives are unable to offset any unplanned increase in costs • Refinery turnarounds for the Fall season do not materialize • AZZ’s o
Slide 11: Closing Comments
Closing Comments 11
Slide 12: Q&A
Q&A