AZZ Inc. recently released its 10-Q report, providing a detailed look into its financial performance for the three months ended May 31, 2024. The company, headquartered in Fort Worth, Texas, specializes in providing hot-dip galvanizing and coil coating solutions primarily in North America. AZZ caters to a wide array of industries, including steel fabrication, transmission and distribution, bridge and highway, petrochemical, and general industrial markets, offering corrosion protection and aesthetic coatings for steel and aluminum products.
The company's net income for the three months ended May 31, 2024, was $39.6 million, with an operating cash flow of $71.9 million. However, net income attributable to common shareholders was a loss of $36.8 million, after deducting preferred dividends and the redemption premium on the Series A Preferred Stock. The company generated $308.7 million in cash flows from the issuance of common shares, which was used to fund the redemption of Series A Preferred Stock amounting to $308.9 million. As of May 31, 2024, AZZ had $350.7 million available under its Revolving Credit Facility, with cash and cash equivalents amounting to $10.5 million, reflecting an increase of $6.7 million from the previous year.
The company's consolidated sales for the three months ended May 31, 2024, increased by 5.7% compared to the same period in 2023, totaling $413.2 million. Sales for the AZZ Metal Coatings segment increased by 4.7%, while sales for the AZZ Precoat Metals segment increased by 6.5%. The increase in sales was primarily attributed to a higher volume of steel processed and coil coated during the current quarter.
Operating income for the AZZ Metal Coatings segment increased by 5.4% for the current quarter, driven by increased sales, partially offset by higher cost of sales. The AZZ Precoat Metals segment also saw a 6.4% increase in operating income, primarily due to increased sales, offset by higher cost of sales and selling, general, and administrative expenses.
The company's liquidity as of May 31, 2024, stood at $361.2 million, with available capacity on its Revolving Credit Facility amounting to $350.7 million. Net cash provided by operating activities for the current three-month period was $71.9 million, primarily driven by net income from continuing operations, adjusted to exclude non-cash charges, and an increase in cash resulting from a reduction in working capital.
AZZ Inc.'s 10-Q report provides a comprehensive overview of its financial performance, highlighting its continued focus on operational efficiency and growth strategies amid market challenges and economic uncertainties. Today the company's shares have moved 2.3% to a price of $76.51. Check out the company's full 10-Q submission here.
