AZZ incorporated Reports Strong Growth in Revenues And Earnings for Fiscal Year 2001

For the Year Revenues Increase 31 Percent, Net Income Up 24 Percent



Apr 03, 2001, 01:00 ET from AZZ incorporated

    CROWLEY, Texas, April 3 /PRNewswire/ -- AZZ incorporated (NYSE:   AZZ), a
 manufacturer of electrical products and a provider of galvanizing services,
 today announced unaudited financial results for the fourth quarter of fiscal
 2001 and the year-ended February 28, 2001.
     For the year, unaudited revenue was $121.4 million, an increase of
 31 percent over $92.5 million for fiscal 2000.  Net income for the year was
 $8.2 million, or $1.63 per diluted share, compared to $6.6 million, or
 $1.38 per diluted share, for fiscal 2000.  This constituted a 24% increase in
 net income and an 18% increase in diluted earnings per share on a
 year-over-year basis.
     For the fourth quarter, unaudited revenue was $30.9 million, up 18 percent
 from $26.2 million for the comparable quarter last year.  Net income for the
 quarter increased 19 percent to $2.2 million, or $0.42 per diluted share,
 compared to net income of $1.8 million, or $0.38 per diluted share, in last
 year's fiscal fourth quarter.  Backlog for the Manufactured Products Segment
 at the end of fiscal 2001 was $34.8 million.  Management anticipates that due
 to a continued high demand for electrical power, the backlog should strengthen
 to record levels during the first two quarters of fiscal 2002.
     "We are extremely pleased with the financial results for fiscal year
 2001," said David H. Dingus, president and chief executive officer of
 AZZ incorporated.  "Revenue growth of 31 percent and net income growth of
 24 percent is consistent with what we anticipated at the beginning of our
 fiscal year.  Both segments of our business, the Manufactured Products Segment
 and the Services Segment, performed at a very high level in fiscal 2001.  Due
 to the continued strengthening of our balance sheet we do not anticipate that
 current economic conditions will slow our efforts to acquire strategic assets.
 We will continue our stated acquisition strategy in each of our market
 segments."
     Revenue for the Manufactured Products Segment was $18.5 million for the
 fourth quarter compared to $15 million in the fourth quarter of fiscal 2000.
 Revenue for the Company's Services Segment, which consists of its galvanizing
 operations, was $12.4 million for the fourth quarter compared to $11.3 in the
 previous year's fourth quarter.  The Service Segment was impacted by general
 softness in the market, while the Manufactured Products Segment saw product
 shipment delays.
     Mr. Dingus continued, "Looking ahead, with the general economy continuing
 to exhibit signs of slowing and the impact which this has on our galvanizing
 service, we believe it is unlikely that the growth rates of fiscal 2001 can be
 sustained.  The unfavorable impact of rising utility costs in the last few
 months of fiscal 2001 should be minimized as we go forward due to long term
 supply contracts, and our fuel surcharge.  This combined with our anticipation
 that there will be a continuation of the high demand for our electrical
 products, our expectation is that the Company's year-over-year organic revenue
 and net income growth will approximate 10 percent in fiscal 2002.  Clearly, an
 upturn in the economy could have a beneficial impact on our performance,
 however, we believe that a conservative outlook is called for in this
 environment."
     AZZ incorporated will conduct a conference call to discuss its fourth
 quarter and fiscal year-ended 2001 earnings and the outlook for fiscal 2002 on
 Tuesday, April 3, at 4:30 PM Eastern.  This call is available on a live web
 cast and can be accessed at
 http://www.vcall.com/NASApp/Vcall/EventPage?ID=71401
 
     AZZ incorporated, is a specialty electrical equipment manufacturer serving
 the global growth markets of power generation, transmission and distribution,
 and a leading provider of hot dip galvanizing services to the steel
 fabrication market nationwide.
 
     Except for the statements of historical fact, this release may contain
 "forward-looking statements" that involve risks and uncertainties that are
 detailed from time to time in documents filed by the Company with the SEC.
 Those risks, uncertainties, and factors include, but are not limited to:
 changes in demand, prices and raw material cost, including zinc which is used
 in the hot dip galvanizing process; changes in the economic conditions of the
 various markets the Company serves, foreign and domestic; changes in the
 market price for oil and natural gas; acquisition opportunities, adequacy of
 financing, and availability of experienced management employees to implement
 the Company's growth strategy; and customer demand and response to products
 and services offered by the Company.  The Company can give no assurance that
 any forward-looking statement will prove to be correct.
 
 
                                AZZ incorporated
                         Condensed Statement of Income
                    (in thousands except per share amounts)
 
                        THREE MONTHS ENDED           TWELVE MONTHS ENDED
                    February 28,   February 29,  February 28,   February 29,
                        2001           2000          2001           2000
                     (unaudited)    (audited)     (unaudited)    (audited)
 
     Net sales        $30,902        $26,234      $121,406        $92,544
     Income before
      taxes            $3,452         $2,893       $13,127        $10,549
     Net income        $2,150         $1,809        $8,172         $6,593
     Net income per
      share
       Basic            $0.43          $0.38         $1.67          $1.39
       Diluted          $0.42          $0.38         $1.63          $1.38
       Diluted
        average
        shares
        outstanding     5,068          4,810         5,010          4,775
 
 
                      Condensed Consolidated Balance Sheet
                                 (in thousands)
 
                                      February 28, 2001    February 29, 2000
                                         (unaudited)           (audited)
 
     Assets:
       Current assets                       $40,042              $34,958
       Net property, plant
        and equipment                       $28,750              $28,270
       Other assets, net                    $19,576              $21,576
       Total assets                         $88,368              $84,804
 
     Liabilities and shareholders' equity:
       Current liabilities                  $21,310              $19,829
       Long term debt due
        after one year                      $22,947              $31,075
       Other liabilities                       $731                 $879
       Shareholders' equity                 $43,380              $33,021
     Total liabilities and
      shareholders' equity                  $88,368              $84,804
 
 
                        Condensed Statement of Cash Flow
                                 (in thousands)
 
                                      February 28, 2001    February 29 ,2000
                                         (unaudited)           (audited)
 
     Net cash provided by (used in)
      operating activities                  $11,964              $13,833
     Net cash provided by (used in)
      investing activities                  $(4,812)            $(25,033)
     Net cash provided by (used in)
      financing activities                  $(7,034)             $11,728
     Net increase (decrease)
      in cash and cash equivalents             $118                 $528
     Cash and cash equivalents
      at beginning of year                   $1,328                 $800
     Cash and cash equivalents
      at end of quarter                      $1,446               $1,328
 
 
 

SOURCE AZZ incorporated
    CROWLEY, Texas, April 3 /PRNewswire/ -- AZZ incorporated (NYSE:   AZZ), a
 manufacturer of electrical products and a provider of galvanizing services,
 today announced unaudited financial results for the fourth quarter of fiscal
 2001 and the year-ended February 28, 2001.
     For the year, unaudited revenue was $121.4 million, an increase of
 31 percent over $92.5 million for fiscal 2000.  Net income for the year was
 $8.2 million, or $1.63 per diluted share, compared to $6.6 million, or
 $1.38 per diluted share, for fiscal 2000.  This constituted a 24% increase in
 net income and an 18% increase in diluted earnings per share on a
 year-over-year basis.
     For the fourth quarter, unaudited revenue was $30.9 million, up 18 percent
 from $26.2 million for the comparable quarter last year.  Net income for the
 quarter increased 19 percent to $2.2 million, or $0.42 per diluted share,
 compared to net income of $1.8 million, or $0.38 per diluted share, in last
 year's fiscal fourth quarter.  Backlog for the Manufactured Products Segment
 at the end of fiscal 2001 was $34.8 million.  Management anticipates that due
 to a continued high demand for electrical power, the backlog should strengthen
 to record levels during the first two quarters of fiscal 2002.
     "We are extremely pleased with the financial results for fiscal year
 2001," said David H. Dingus, president and chief executive officer of
 AZZ incorporated.  "Revenue growth of 31 percent and net income growth of
 24 percent is consistent with what we anticipated at the beginning of our
 fiscal year.  Both segments of our business, the Manufactured Products Segment
 and the Services Segment, performed at a very high level in fiscal 2001.  Due
 to the continued strengthening of our balance sheet we do not anticipate that
 current economic conditions will slow our efforts to acquire strategic assets.
 We will continue our stated acquisition strategy in each of our market
 segments."
     Revenue for the Manufactured Products Segment was $18.5 million for the
 fourth quarter compared to $15 million in the fourth quarter of fiscal 2000.
 Revenue for the Company's Services Segment, which consists of its galvanizing
 operations, was $12.4 million for the fourth quarter compared to $11.3 in the
 previous year's fourth quarter.  The Service Segment was impacted by general
 softness in the market, while the Manufactured Products Segment saw product
 shipment delays.
     Mr. Dingus continued, "Looking ahead, with the general economy continuing
 to exhibit signs of slowing and the impact which this has on our galvanizing
 service, we believe it is unlikely that the growth rates of fiscal 2001 can be
 sustained.  The unfavorable impact of rising utility costs in the last few
 months of fiscal 2001 should be minimized as we go forward due to long term
 supply contracts, and our fuel surcharge.  This combined with our anticipation
 that there will be a continuation of the high demand for our electrical
 products, our expectation is that the Company's year-over-year organic revenue
 and net income growth will approximate 10 percent in fiscal 2002.  Clearly, an
 upturn in the economy could have a beneficial impact on our performance,
 however, we believe that a conservative outlook is called for in this
 environment."
     AZZ incorporated will conduct a conference call to discuss its fourth
 quarter and fiscal year-ended 2001 earnings and the outlook for fiscal 2002 on
 Tuesday, April 3, at 4:30 PM Eastern.  This call is available on a live web
 cast and can be accessed at
 http://www.vcall.com/NASApp/Vcall/EventPage?ID=71401
 
     AZZ incorporated, is a specialty electrical equipment manufacturer serving
 the global growth markets of power generation, transmission and distribution,
 and a leading provider of hot dip galvanizing services to the steel
 fabrication market nationwide.
 
     Except for the statements of historical fact, this release may contain
 "forward-looking statements" that involve risks and uncertainties that are
 detailed from time to time in documents filed by the Company with the SEC.
 Those risks, uncertainties, and factors include, but are not limited to:
 changes in demand, prices and raw material cost, including zinc which is used
 in the hot dip galvanizing process; changes in the economic conditions of the
 various markets the Company serves, foreign and domestic; changes in the
 market price for oil and natural gas; acquisition opportunities, adequacy of
 financing, and availability of experienced management employees to implement
 the Company's growth strategy; and customer demand and response to products
 and services offered by the Company.  The Company can give no assurance that
 any forward-looking statement will prove to be correct.
 
 
                                AZZ incorporated
                         Condensed Statement of Income
                    (in thousands except per share amounts)
 
                        THREE MONTHS ENDED           TWELVE MONTHS ENDED
                    February 28,   February 29,  February 28,   February 29,
                        2001           2000          2001           2000
                     (unaudited)    (audited)     (unaudited)    (audited)
 
     Net sales        $30,902        $26,234      $121,406        $92,544
     Income before
      taxes            $3,452         $2,893       $13,127        $10,549
     Net income        $2,150         $1,809        $8,172         $6,593
     Net income per
      share
       Basic            $0.43          $0.38         $1.67          $1.39
       Diluted          $0.42          $0.38         $1.63          $1.38
       Diluted
        average
        shares
        outstanding     5,068          4,810         5,010          4,775
 
 
                      Condensed Consolidated Balance Sheet
                                 (in thousands)
 
                                      February 28, 2001    February 29, 2000
                                         (unaudited)           (audited)
 
     Assets:
       Current assets                       $40,042              $34,958
       Net property, plant
        and equipment                       $28,750              $28,270
       Other assets, net                    $19,576              $21,576
       Total assets                         $88,368              $84,804
 
     Liabilities and shareholders' equity:
       Current liabilities                  $21,310              $19,829
       Long term debt due
        after one year                      $22,947              $31,075
       Other liabilities                       $731                 $879
       Shareholders' equity                 $43,380              $33,021
     Total liabilities and
      shareholders' equity                  $88,368              $84,804
 
 
                        Condensed Statement of Cash Flow
                                 (in thousands)
 
                                      February 28, 2001    February 29 ,2000
                                         (unaudited)           (audited)
 
     Net cash provided by (used in)
      operating activities                  $11,964              $13,833
     Net cash provided by (used in)
      investing activities                  $(4,812)            $(25,033)
     Net cash provided by (used in)
      financing activities                  $(7,034)             $11,728
     Net increase (decrease)
      in cash and cash equivalents             $118                 $528
     Cash and cash equivalents
      at beginning of year                   $1,328                 $800
     Cash and cash equivalents
      at end of quarter                      $1,446               $1,328
 
 
 SOURCE  AZZ incorporated

RELATED LINKS

http://www.rcgonline.com