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Nov 30, 2020
Azz Q3 2021 Earnings Report
Reported earnings per share of $0.76 and net income of $19.7 million, despite challenges from the COVID-19 pandemic.
Key Takeaways
AZZ Inc. reported third quarter fiscal year 2021 results with earnings per share of $0.76 and net income of $19.7 million. Sales for the quarter were $226.6 million, a decrease of 22.2% compared to the same period last year. The company is strategically restructuring its portfolio to focus on the metal coatings business.
Earnings per share of $0.76 and net income of $19.7 million, including net charges of $1.6 million related to the divestiture of Southern Mechanical Services (SMS).
Sales of $226.6 million, increased sequentially by 11.4% from the second quarter.
Metal Coatings segment sales decreased 10.5% to $115.6 million, while operating income increased 5.2% to $28.7 million.
Infrastructure Solutions segment sales decreased 31.5% to $111.0 million, and operating income decreased 49.9% to $8.7 million.
Revenue by Segment
Forward Guidance
AZZ Inc. anticipates fiscal 2021 fourth quarter financial results to exceed the fiscal 2020 fourth quarter adjusted earnings per share of $0.47 per diluted share, but expects fourth quarter results to be below the third quarter results. The company continues to suspend full fiscal year 2021 guidance due to COVID-19 disruptions.
Positive Outlook
- Strong cash flow generation will help manage debt and liquidity effectively.
- Focus on capital expenditures on core growth initiatives and safety-related spending.
- Reducing debt and repurchasing shares to enhance shareholder value.
- Integrating the acquisition of Acme Galvanizing to drive market share growth and operating efficiencies.
- Building backlog in the Infrastructure Solutions segment.
Challenges Ahead
- Ongoing COVID-related travel restrictions within certain geographical areas served by Infrastructure Solutions teams.
- Expects fourth quarter results to be below the third quarter results.
- Continued disruption from COVID-19.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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