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May 31, 2020
Azz Q1 2021 Earnings Report
Reported financial results for the first quarter of fiscal year 2021 amidst COVID-19 disruptions.
Key Takeaways
AZZ Inc. reported a decrease in revenue by 26.2% compared to the same quarter last year, with a significant impact on the Energy Segment due to COVID-19. However, the Metal Coatings Segment delivered solid results. The company is focused on structuring operations, divesting non-core businesses, and investing in core businesses.
Effectively managed liquidity with $342 million of additional available credit.
Metal Coatings Segment revenue decreased by 2.6% with operating income down 14.7%.
Energy Segment revenue decreased by 43.5% with operating income down to $(1.0) million.
Net income decreased to $5.5 million, or $0.21 per share, compared to $21.3 million, or $0.81 per share, in the same quarter last year.
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Azz Revenue by Segment
Revenue by Segment
Metal Coatings Revenue
CapyFin.com Forward Guidance
Due to the continued uncertainty associated with the COVID-19 pandemic on many of our end markets, we cannot provide an update to our previously suspended fiscal 2021 sales and earnings guidance range at this time.
Positive Outlook
- Continue to operate as an ‘essential business’ in supporting critical infrastructure needs.
- Low debt level and ample borrowing capacity.
- Consistent ability to generate cash.
- Focusing capital expenditures on core growth initiatives and safety-related spending.
- Prudent cash management.
Challenges Ahead
- Continued uncertainty associated with the COVID-19 pandemic on many of our end markets.
- Risks in fully integrating the Galvanizing and Surface Technologies platforms.
- Risks in building backlog in our core Electrical Businesses.
- Risks in ensuring our ability to deploy resources effectively during a strengthening fall turnaround season.
- Some M&A efforts have been impacted by our inability to meet with prospective parties due to the COVID-19 pandemic.