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Feb 29, 2020

Azz Q4 2020 Earnings Report

AZZ Inc. reported a revenue increase of 21.1% and a decrease in operating income due to one-time charges.

Key Takeaways

AZZ Inc. reported a 21.1% increase in revenue for the fourth quarter of fiscal year 2020. However, the company experienced a decrease in operating income and net income due to pre-tax adjusted items, including a loss on the disposal of the NLI business and impairment charges. Adjusted non-GAAP net income was $12.4 million, or $0.47 per share.

Revenues for the fourth quarter were $245.4 million, an increase of 21.1%.

Reported operating income for the fourth quarter decreased 154.3% to $(7.3) million.

Reported net loss for the fourth quarter was $(10.6) million, or $(.41) per diluted share.

Adjusted non-GAAP net income was $12.4 million or $0.47 per share.

Total Revenue
$245M
Previous year: $203M
+21.1%
EPS
$0.47
Previous year: $0.34
+38.2%
Gross Profit
$51.1M
Previous year: $43.3M
+18.1%
Cash and Equivalents
$36.7M
Previous year: $24M
+52.8%
Free Cash Flow
$60.2M
Previous year: $42.3M
+42.2%
Total Assets
$1.07B
Previous year: $1.09B
-1.4%

Azz

Azz

Azz Revenue by Segment

Forward Guidance

Due to uncertainty associated with the recent COVID-19 pandemic on many of our end markets, we are discontinuing our previously issued fiscal 2021 sales and earnings per fully diluted share guidance range.

Positive Outlook

  • Continue to operate as an ‘essential business’ in supporting critical infrastructure needs
  • Low debt level
  • Ample borrowing capacity
  • Consistent ability to generate cash
  • Have not experienced any unusual slowdown in customer payments

Challenges Ahead

  • Uncertainty associated with the recent COVID-19 pandemic on many of our end markets
  • Discontinuing previously issued fiscal 2021 sales and earnings per fully diluted share guidance range
  • Modestly reduce capital expenditures
  • Suspending share repurchases
  • Taking selected staffing reductions in businesses with low demand

Revenue & Expenses

Visualization of income flow from segment revenue to net income