AZZ: cash from operations doubles in fiscal Q1, cash and equivalents down at $12.08 million

By Lisa Kerner

Charlotte, N.C., July 5 – AZZ Inc.’s first-quarter cash from operations more than doubled year over year to $9.6 million, said president and chief executive officer Tom Ferguson during the company’s earnings call on Tuesday.

The company ended its first quarter on May 31 with cash and cash equivalents of $12.08 million, compared to $40.19 million at Feb. 29, according to a form 10-Q filed with the Securities and Exchange Commission.

AZZ had $116 million of outstanding debt against its revolving credit facility and letters of credit outstanding in the amount of $23.5 million, leaving about $85.5 million of additional credit available under the credit agreement.

Net cash used in investing activities was $33.1 million, and net cash used in financing activities was $4.8 million, resulting in a net decrease in cash and cash equivalents of about $28.1 million.

Ferguson said he was pleased with AZZ’s strong performance during the quarter.

The company completed its acquisition of Power Electronics, Inc. and remains focused on growth, including internationally.

While AZZ is considering more widespread acquisitions, it does not have “deal fever,” Ferguson said.

AZZ posted “solid” bookings during the quarter and had a record backlog of $354.2 million at May 31, said Ferguson. About 25% of the backlog is expected to be delivered outside the United States, according to the earnings news release.

First-quarter revenues were up 6% year over year at about $243 million, while net income was up 5.7% to about $21 million.

The company’s board of directors authorized a quarterly cash dividend in the amount of $0.15 per share its outstanding shares of common stock payable on Aug. 1.

Ferguson reaffirmed fiscal 2017 guidance for earnings per share in the range of $3.15 to $3.45 per diluted share and revenues in the range of $930 million to $970 million.

AZZ is a Fort Worth-based specialty electrical equipment manufacturer.

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