Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Apr. 14, 2015 | Aug. 29, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 28-Feb-15 | ||
Entity Registrant Name | AZZ INC | ||
Entity Central Index Key | 8947 | ||
Current Fiscal Year End Date | -26 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2015 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 25,765,025 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,154,492,795 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income Statement [Abstract] | |||
Net Sales | $816,687 | $751,723 | $570,594 |
Costs and Expenses | |||
Cost of Sales | 610,991 | 546,018 | 406,421 |
Gross profit | 205,696 | 205,705 | 164,173 |
Selling, General and Administrative | 98,871 | 105,591 | 66,189 |
Operating Income (Loss) | 106,825 | 100,114 | 97,984 |
Interest Expense | 16,561 | 18,407 | 13,073 |
Other Expense (Income) - net | 2,659 | -4,165 | -1,155 |
Gain (Loss) on Disposition of Property Plant Equipment | 2,525 | 8,039 | 8,303 |
Income before income taxes | 90,130 | 93,911 | 94,369 |
Income Tax Expense | 25,187 | 34,314 | 33,913 |
Net Income | $64,943 | $59,597 | $60,456 |
Earnings Per Common Share | |||
Basic Earnings Per Share (usd per share) | $2.53 | $2.34 | $2.39 |
Diluted Earnings Per Share (usd per share) | $2.52 | $2.32 | $2.37 |
Weighted average number common shares (shares) | 25,675,645 | 25,514,387 | 25,320,147 |
Weighted average number common shares and potentially dilutive common shares (shares) | 25,777,945 | 25,693,468 | 25,560,594 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Net Income | $64,943 | $59,597 | $60,456 |
Other Comprehensive Income (Loss): | |||
Unrealized Translation Gains (Losses) | -11,760 | -7,775 | -4,439 |
Interest Rate Swap, Net of Income Tax of $29, $29 and $29, respectively. | -54 | -54 | -54 |
Other Comprehensive Income (Loss) | -11,814 | -7,829 | -4,493 |
Comprehensive Income | $53,129 | $51,768 | $55,963 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Interest rate swap, income tax | ($29) | ($29) | ($29) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $22,527 | $27,565 |
Accounts receivable, net of allowance for doubtful accounts of $1,472 and $1,744 in 2015 and 2014, respectively | 125,638 | 116,128 |
Inventories - net | 107,697 | 107,581 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 33,676 | 27,222 |
Deferred income tax assets | 4,526 | 7,801 |
Prepaid expenses and other | 4,570 | 9,884 |
Total current assets | 298,634 | 296,181 |
Property, plant, and equipment, net | 196,583 | 197,639 |
Goodwill | 279,074 | 278,556 |
Intangibles and other assets | 162,623 | 180,877 |
Total Assets | 936,914 | 953,253 |
Current Liabilities: | ||
Accounts payable | 49,580 | 38,833 |
Income tax payable | 2,888 | 5,359 |
Accrued salaries and wages | 17,046 | 17,760 |
Other accrued liabilities | 18,287 | 17,155 |
Customer advance payment | 28,401 | 33,733 |
Profit sharing | 6,400 | 7,310 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 4,674 | 3,018 |
Long-term debt due within one year | 21,866 | 20,848 |
Total Current Liabilities | 149,142 | 144,016 |
Long-term debt due after one year | 315,982 | 384,768 |
Deferred income tax liabilities | 51,738 | 39,435 |
Other Liabilities, Noncurrent | 0 | 9,121 |
Total liabilities | 516,862 | 577,340 |
Shareholders' Equity: | ||
Common Stock, $1.00 par value; 100,000 shares authorized; 25,732 shares issued and outstanding at February 28, 2015 and 25,577 at February 28, 2014 | 25,732 | 25,577 |
Capital in excess of par value | 27,706 | 21,954 |
Retained earnings | 389,446 | 339,400 |
Accumulated other comprehensive income (loss) | -22,832 | -11,018 |
Total Shareholders’ Equity | 420,052 | 375,913 |
Total Liabilities and Shareholders’ Equity | $936,914 | $953,253 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accounts Receivable, Allowance for Doubtful Accounts | $1,472 | $1,744 |
Common Stock, Par Value (usd per share) | $1 | $1 |
Common Stock, Shares Authorized (shares) | 100,000,000 | 100,000,000 |
Common Stock, Value, Issued | $25,732 | $25,577 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Cash Flows From Operating Activities: | |||
Net Income | $64,943,000 | $59,597,000 | $60,456,000 |
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities: | |||
Depreciation | 28,100,000 | 25,100,000 | 19,400,000 |
Depreciation, Amortization and Accretion, Net | 46,089,000 | 43,305,000 | 29,363,000 |
Deferred income tax expense | 15,818,000 | 842,000 | 3,366,000 |
Share-based compensation expense | 4,080,000 | 3,703,000 | 3,175,000 |
Amortization of deferred borrowing costs | 1,431,000 | 1,421,000 | 287,000 |
Provision for doubtful accounts | 458,000 | -116,000 | 446,000 |
Gain (Loss) on Disposition of Assets | 2,651,000 | 0 | 0 |
Net (gain) loss on insurance settlement or sale of property, plant and equipment | -2,525,000 | -8,039,000 | -8,303,000 |
Effects of changes in operating assets and liabilities, net of acquisitions: | |||
Accounts Receivable | -9,382,000 | 35,955,000 | -11,599,000 |
Inventories | -879,000 | -6,209,000 | -4,454,000 |
Prepaid expenses and other assets | 5,543,000 | -6,590,000 | -2,244,000 |
Net change in billings related to costs and estimated earnings on uncompleted contracts | -5,635,000 | -9,732,000 | 1,942,000 |
Accounts payable | 11,025,000 | -4,150,000 | 958,000 |
Other accrued liabilities and income taxes payable | -15,460,000 | -2,712,000 | 19,345,000 |
Net cash provided by operating activities: | 118,157,000 | 107,275,000 | 92,738,000 |
Cash flows from investing activities: | |||
Proceeds from the sale or insurance settlement of property, plant, and equipment | 1,330,000 | 8,205,000 | 11,839,000 |
Acquisition of subsidiaries, net of cash acquired | -11,518,000 | -275,702,000 | -137,058,000 |
Purchases of property, plant and equipment | -29,377,000 | -43,472,000 | -24,923,000 |
Net cash used in investing activities: | -39,565,000 | -310,969,000 | -150,142,000 |
Cash flows from financing activities: | |||
Tax benefits from stock options exercised | 259,000 | 1,602,000 | 1,283,000 |
Proceeds from exercise of stock options and stock appreciation rights | 0 | 0 | 16,000 |
Payments on revolving loan | -57,905,000 | -60,000,000 | 0 |
Proceeds from Lines of Credit | 10,977,000 | 197,000,000 | 0 |
Proceeds from Issuance of Long-term Debt | 0 | 75,000,000 | 0 |
Proceeds from long-term debt | -20,848,000 | -17,098,000 | -18,136,000 |
Cash dividends paid | -14,897,000 | -14,290,000 | -13,423,000 |
Net cash provided by (used in) financing activities | -82,414,000 | 176,333,000 | -30,360,000 |
Effect of exchange rate changes on cash | -1,216,000 | -672,000 | 59,000 |
Net increase (decrease) in cash and cash equivalents | -5,038,000 | -28,033,000 | -87,705,000 |
Cash and cash equivalents at beginning of year | 27,565,000 | 55,598,000 | 143,303,000 |
Cash and cash equivalents at end of year | 22,527,000 | 27,565,000 | 55,598,000 |
Cash paid during the year for: | |||
Interest | 15,613,000 | 16,500,000 | 13,108,000 |
Income taxes | 15,264,000 | 26,332,000 | 30,967,000 |
Payments of Debt Issuance Costs | $0 | ($5,881,000) | ($100,000) |
Consolidated_Statement_of_Shar
Consolidated Statement of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, unless otherwise specified | ||||||
Balance, beginning balance at Feb. 29, 2012 | $287,609 | $25,218 | $14,201 | $247,060 | $1,304 | ($174) |
Balance, beginning balance (shares) at Feb. 29, 2012 | 25,218 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options | 15 | 7 | 8 | |||
Stock compensation (shares) | 14 | |||||
Stock compensation | 3,175 | 14 | 3,161 | |||
Restricted Stock Units | -413 | -517 | 104 | |||
Stock Issued for SARs, Shares | 90 | |||||
Stock Issued for SARs | -1,192 | 90 | -1,297 | 15 | ||
Employee Stock Purchase Plan (shares) | 47 | |||||
Employee Stock Purchase Plan | -916 | 47 | -814 | 55 | ||
Federal income tax deducted on stock options | 1,283 | 1,283 | ||||
Cash dividend paid | -13,423 | -13,423 | ||||
Net income | 60,456 | 60,456 | ||||
Foreign currency translation | -4,439 | -4,439 | ||||
Interest rate swap, net of $29,205 of income tax | -54 | -54 | ||||
Balance, ending balance at Feb. 28, 2013 | 333,933 | 25,376 | 17,653 | 294,093 | -3,189 | 0 |
Balance, ending balance (shares) at Feb. 28, 2013 | 25,376 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation (shares) | 14 | |||||
Stock compensation | 3,703 | 14 | 3,689 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 56 | |||||
Restricted Stock Units | -1,337 | 56 | -1,393 | |||
Stock Issued for SARs, Shares | 68 | |||||
Stock Issued for SARs | -1,049 | 68 | -1,117 | |||
Employee Stock Purchase Plan (shares) | 63 | |||||
Employee Stock Purchase Plan | -1,582 | 63 | -1,519 | |||
Federal income tax deducted on stock options | 1,603 | -1,603 | ||||
Cash dividend paid | -14,290 | -14,290 | ||||
Net income | 59,597 | 59,597 | ||||
Foreign currency translation | -7,775 | -7,775 | ||||
Interest rate swap, net of $29,205 of income tax | -54 | -54 | ||||
Balance, ending balance at Feb. 28, 2014 | 375,913 | 25,577 | 21,954 | 339,400 | -11,018 | 0 |
Balance, ending balance (shares) at Feb. 28, 2014 | 25,577 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock compensation (shares) | 16 | |||||
Stock compensation | 4,080 | 16 | 4,064 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 21 | |||||
Restricted Stock Units | -476 | 21 | -497 | |||
Stock Issued for SARs, Shares | 40 | |||||
Stock Issued for SARs | -331 | 40 | -371 | |||
Employee Stock Purchase Plan (shares) | 78 | |||||
Employee Stock Purchase Plan | 2,375 | 78 | 2,297 | |||
Federal income tax deducted on stock options | 259 | 259 | ||||
Cash dividend paid | -14,897 | -14,897 | ||||
Net income | 64,943 | |||||
Foreign currency translation | -11,760 | -11,760 | ||||
Interest rate swap, net of $29,205 of income tax | -54 | -54 | ||||
Balance, ending balance at Feb. 28, 2015 | $420,052 | $25,732 | $27,706 | $389,446 | ($22,832) | $0 |
Balance, ending balance (shares) at Feb. 28, 2015 | 25,732 |
Consolidated_Statement_of_Shar1
Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Statement of Stockholders' Equity [Abstract] | |||
Interest rate swap, income tax | ($29) | ($29) | ($29) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies (Notes) | 12 Months Ended | |||
Feb. 28, 2015 | ||||
Accounting Policies [Abstract] | ||||
Summary of significant accounting policies | Summary of significant accounting policies | |||
Organization-AZZ incorporated (the “Company” “AZZ” or “We”) operates primarily in the United States of America and Canada and has recently begun operating in China, Brazil, Poland and the Netherlands. Information about the Company's operations by segment is included in Note 13 to the consolidated financial statements. | ||||
Basis of consolidation—The consolidated financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||
Use of estimates—The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||
Concentrations of credit risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. | ||||
The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the United States and Canada, as well as Europe, China and Brazil. The Company's policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's banking relationships and has not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents. | ||||
Concentrations of credit risk with respect to trade accounts receivable are limited due to the Company’s diversity by virtue of two operating segments, the number of customers, and the absence of a concentration of trade accounts receivable in a small number of customers. The Company performs continuous evaluations of the collectability of trade accounts receivable and allowance for doubtful accounts based upon historical losses, economic conditions and customer specific events. After all collection efforts are exhausted and an account is deemed uncollectible, it is written off against the allowance for doubtful accounts. Accounts receivable written off, net of recoveries, in fiscal 2015, 2014 and 2013 were approximately $0.7 million, $0.3 million and $0.3 million, respectively. Collateral is usually not required from customers as a condition of sale. | ||||
Revenue recognition—The Company recognizes revenue for the Energy Segment upon transfer of title and risk to customer or based upon the percentage of completion method of accounting for electrical products built to customer specifications and services under long-term contracts. We typically recognize revenue for the Galvanizing Services Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred. | ||||
Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated. | ||||
Cash and cash equivalents—The Company considers cash and cash equivalents to include cash on hand, deposits with banks and all highly liquid investments with an original maturity of three months or less. | ||||
Inventories—Cost is determined principally using a weighted-average method for the Energy Segment and the first-in-first-out (FIFO) method for the Galvanizing Services Segment. | ||||
Property, plant and equipment—For financial reporting purposes, depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: | ||||
Buildings and structures | 10-25 years | |||
Machinery and equipment | 3-15 years | |||
Furniture and fixtures | 3-15 years | |||
Automotive equipment | 3 years | |||
Computers and software | 3 years | |||
Maintenance and repairs are charged to expense as incurred; renewals and betterments that significantly extend the useful life of the asset are capitalized. | ||||
Long-lived assets, intangible assets and goodwill—Purchased intangible assets included on the balance sheets are comprised of customer lists, backlogs, engineering drawings and non-compete agreements. Such intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from two to nineteen years. The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. As of February 28, 2015, no impairment of long-lived assets, intangible assets or goodwill was determined. | ||||
Debt issue costs—Debt issue costs, included in other assets, are amortized using the effective interest rate method over the term of the debt. | ||||
Income taxes—We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | ||||
We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | ||||
As applicable, we record uncertain tax positions in accordance with GAAP on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We currently do not have any unrecognized tax benefits to record related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future. | ||||
The Company is subject to taxation in the U.S. and various state, provincial and local and foreign jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2012. | ||||
Share-based compensation—The Company has granted stock options, stock appreciation rights or restricted stock units for a fixed number of shares to employees and directors. A discussion of share-based compensation can be found in Note 11 to the Consolidated Financial Statements. | ||||
Financial instruments—Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2, or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included with Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market. | ||||
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our outstanding Senior Notes. For fiscal 2015 and 2014 the fair value of our senior outstanding notes, as described in Note 12 to the Consolidated Financial Statements, was approximately $164.4 million and $179.4 million, respectively. These fair values were determined using the discounted cash flow at the market rate as well as the applicable market interest rates classified as Level 2 inputs. During fiscal 2015 a principal payment was made in the amount of $14.3 million related to the $100.0 million unsecured Senior Notes due March 31, 2018, which accounts for a portion of the decrease in fair value for the compared periods in conjunction with lower market interest rates. | ||||
Derivative financial instruments—From time to time, the Company uses derivatives to manage interest rate risk. The Company’s policy is to use derivatives for risk management purposes only, which includes maintaining the ratio between the Company’s fixed and floating rate debt obligations that management deems appropriate, and prohibits entering into such contracts for trading purposes. The Company enters into derivatives only with counterparties (primarily financial institutions) which have substantial financial wherewithal to minimize credit risk. As the result of the recent global financial crisis, a number of financial institutions have failed or required government assistance, and counterparties considered substantial may develop credit risk. The amount of gains or losses from the use of derivative financial instruments has not been and is not expected to be material to the Company’s consolidated financial statements. As of February 28, 2015, the Company had no derivative financial instruments. | ||||
Warranty reserves—Within other accrued liabilities, a reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products. Management periodically reviews the reserves, and adjustments are made accordingly. A provision for warranty on products is made on the basis of the Company’s historical experience and identified warranty issues. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship. | ||||
The following is a roll-forward of amounts accrued for warranties (in thousands): | ||||
Balance at February 29, 2012 | $ | 1,670 | ||
Warranty costs incurred | (2,026 | ) | ||
Additions charged to income | 2,429 | |||
Balance at February 28, 2013 | $ | 2,073 | ||
Warranty costs incurred | (2,246 | ) | ||
Additions charged to income | 1,511 | |||
Balance at February 28, 2014 | $ | 1,338 | ||
Warranty costs incurred | (1,294 | ) | ||
Additions charged to income | 2,243 | |||
Balance at February 28, 2015 | $ | 2,287 | ||
Accumulated Other Comprehensive Income (Loss)—On January 21, 2011, we entered into a Note Purchase Agreement, (the “2011 Agreement”) and incurred fixed rate, long-term indebtedness of $125.0 million in relation to the 2011 Agreement. See Note 10 to the Consolidated Financial Statements. In anticipation of the issuance of Senior Notes thereunder, we entered into a treasury lock hedging transaction with Bank of America Merrill Lynch (BAML) in order to eliminate the variability of cash flows on the forecasted fixed rate coupon of the debt during the pre-issuance period. The hedging transaction settled during the Company’s third fiscal quarter of fiscal 2011, and the Company received a payment from BAML in the amount of $0.8 million resulting therefrom. The notional value of the hedge was $75.0 million and qualified for hedge accounting as a cash flow hedge. The gain on the settlement was recorded as a component of Accumulated Other Comprehensive Income (Loss) and is being amortized to interest expense in the form of a credit over the life of the 10 year loan. Amortization of this gain to interest expense was recorded in a credit of $0.1 million for fiscal 2015, 2014, and 2013. | ||||
Accumulated Other Comprehensive Income (Loss) also includes foreign currency translation adjustments from our foreign subsidiaries consisting of Aquilex SRO, AZZ Trading (Shanghai), Blenkhorn and Sawle, Galvan, Galvcast and G3. | ||||
Foreign Currency Translation—The local currency is the functional currency for the Company’s foreign operations. Related assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet date, and revenues and expenses are translated at weighted-average exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss). | ||||
Accruals for Contingent Liabilities— The amounts we record for estimated claims, such as self-insurance programs, warranty, environmental and other contingent liabilities, requires us to make judgments regarding the amount of expenses that will ultimately be incurred. We use past history and experience and other specific circumstances surrounding these claims in evaluating the amount of liability that should be recorded. Actual results may be different than what we estimate. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. |
Inventories_Notes
Inventories (Notes) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | Inventories | ||||||||
Inventories (net) consisted of the following: | |||||||||
As of February 28, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 62,794 | $ | 64,817 | |||||
Work-in-process | 42,001 | 39,781 | |||||||
Finished goods | 2,902 | 2,983 | |||||||
$ | 107,697 | $ | 107,581 | ||||||
Property_Plant_and_Equipment_N
Property, Plant and Equipment (Notes) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | Property, Plant, and Equipment | ||||||||
Following is a summary of property, plant and equipment: | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Land | $ | 16,004 | $ | 15,116 | |||||
Building and structures | 122,539 | 117,765 | |||||||
Machinery and equipment | 184,921 | 175,955 | |||||||
Furniture, fixtures, software and computers | 21,716 | 20,497 | |||||||
Automotive equipment | 2,351 | 2,429 | |||||||
Construction in progress | 12,193 | 8,277 | |||||||
359,724 | 340,039 | ||||||||
Less accumulated depreciation | (163,141 | ) | (142,400 | ) | |||||
Net property, plant, and equipment | $ | 196,583 | $ | 197,639 | |||||
Depreciation expense was $28.1 million, $25.1 million, and $19.4 million for fiscal 2015, 2014, and 2013, respectively. |
Costs_and_Estimated_Earnings_O
Costs and Estimated Earnings On Uncompleted Contracts (Notes) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Contractors [Abstract] | |||||||||
Costs and estimated earnings on uncompleted contracts | Costs and estimated earnings on uncompleted contracts | ||||||||
Costs and estimated earnings on uncompleted contracts consisted of the following: | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Costs incurred on uncompleted contracts | $ | 126,882 | $ | 158,224 | |||||
Estimated earnings | 50,487 | 65,063 | |||||||
177,369 | 223,287 | ||||||||
Less billings to date | 148,367 | 199,083 | |||||||
$ | 29,002 | $ | 24,204 | ||||||
The amounts noted above are included in the accompanying consolidated balance sheets under the following captions: | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Cost and estimated earnings in excess of billings on uncompleted contracts | $ | 33,676 | $ | 27,222 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (4,674 | ) | (3,018 | ) | |||||
$ | 29,002 | $ | 24,204 | ||||||
Other_Accrued_Liabilities_Note
Other Accrued Liabilities (Notes) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Other accrued liabilities | Other accrued liabilities | ||||||||
Other accrued liabilities consisted of the following: | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Accrued interest | $ | 2,878 | $ | 3,415 | |||||
Tenant improvements | 745 | 984 | |||||||
Accrued warranty | 2,287 | 1,338 | |||||||
Commissions | 2,540 | 1,259 | |||||||
Personnel expenses | 6,034 | 5,579 | |||||||
Group medical insurance | 1,502 | 1,858 | |||||||
Other | 2,301 | 2,722 | |||||||
$ | 18,287 | $ | 17,155 | ||||||
Realignment_Costs_Notes
Realignment Costs (Notes) | 12 Months Ended | |||
Feb. 28, 2015 | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Activities Disclosure [Text Block] | Realignment Costs | |||
As part of AZZ's ongoing efforts to optimize cost and effectiveness, during the second quarter of fiscal 2015, the Company underwent a review of its current management structure with respect to its segment and corporate operations and recorded realignment costs related to severance associated with changes needed to improve management efficiency and accountability. We also reserved for the disposition and write off of certain fixed assets in connection with the realignment. The total cost related to the realignment is estimated to be $4.0 million. One-time severance costs total $1.3 million and is included in Selling, General and Administrative Expense. The loss recognized from the disposition of certain fixed assets total $2.7 million and is included in Costs of Sales. The following table shows changes in the realignment accrual: | ||||
Realignment Accrual | ||||
(in thousands) | ||||
Realignment costs accrued | $ | 3,952 | ||
Realignment costs utilized | (3,496 | ) | ||
Balance at February 28, 2015 | $ | 456 | ||
Employee_Benefit_Plans_Notes
Employee Benefit Plans (Notes) | 12 Months Ended |
Feb. 28, 2015 | |
Postemployment Benefits [Abstract] | |
Employee benefit plans | Employee benefit plans |
The Company has a trusted profit sharing plan and 401(k) plan covering substantially all of its employees. Under the provisions of the plan, the Company contributes amounts as authorized by the Board of Directors. Total contributions to the profit sharing plan, which included the Company’s 401(k) matching, were $10.0 million, $10.4 million, and $10.5 million for fiscal 2015, 2014, and 2013, respectively. |
Income_Taxes_Notes
Income Taxes (Notes) | 12 Months Ended | ||||||||||
Feb. 28, 2015 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Income taxes | Income taxes | ||||||||||
The provision for income taxes consists of: | |||||||||||
2015 | 2014 | 2013 | |||||||||
Income before income taxes: | |||||||||||
Domestic | $ | 76,434 | $ | 83,495 | $ | 92,334 | |||||
Foreign | 13,696 | 10,416 | 2,035 | ||||||||
Income before income taxes | $ | 90,130 | $ | 93,911 | $ | 94,369 | |||||
Current provision: | |||||||||||
Federal | $ | 3,770 | $ | 28,901 | $ | 26,330 | |||||
Foreign | 3,025 | 1,903 | (2,600 | ) | |||||||
State and Local | 2,575 | 4,382 | 4,136 | ||||||||
Total current provision for income taxes | $ | 9,370 | $ | 35,186 | $ | 27,866 | |||||
Deferred provision (benefit): | |||||||||||
Federal | $ | 15,455 | $ | (2,143 | ) | $ | 2,024 | ||||
Foreign | (858 | ) | 1,230 | 3,455 | |||||||
State and Local | 1,220 | 41 | 568 | ||||||||
Total deferred provision for income taxes | $ | 15,817 | $ | (872 | ) | $ | 6,047 | ||||
Total provision for income taxes | $ | 25,187 | $ | 34,314 | $ | 33,913 | |||||
A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows: | |||||||||||
2015 | 2014 | 2013 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Permanent differences | 0.6 | 1.3 | 0.2 | ||||||||
State income taxes, net of federal income tax benefit | 2.7 | 3 | 3.1 | ||||||||
Benefit of Section 199 of the Code, manufacturing deduction | (2.4 | ) | (2.2 | ) | (2.6 | ) | |||||
Valuation allowance | (3.4 | ) | — | — | |||||||
Tax credits | (3.4 | ) | — | — | |||||||
Foreign tax rate differential | (0.7 | ) | (0.6 | ) | 0.2 | ||||||
Other | (0.5 | ) | — | — | |||||||
Effective income tax rate | 27.9 | % | 36.5 | % | 35.9 | % | |||||
Deferred federal and state income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial accounting purposes and the amounts used for income tax purposes. Significant components of the Company’s net deferred income tax liability are as follows: | |||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Deferred income tax assets: | |||||||||||
Employee related items | $ | 4,690 | $ | 4,314 | |||||||
Inventories | 1,080 | 839 | |||||||||
Accrued warranty | 893 | 504 | |||||||||
Accounts receivable | 565 | 2,342 | |||||||||
Net operating loss carry forward | 1,919 | 4,268 | |||||||||
Other | — | 606 | |||||||||
9,147 | 12,873 | ||||||||||
Less: valuation allowance | (1,588 | ) | (3,793 | ) | |||||||
Total deferred income tax assets | 7,559 | 9,080 | |||||||||
Deferred income tax liabilities: | |||||||||||
Depreciation methods and property basis differences | (28,611 | ) | (19,995 | ) | |||||||
Other assets and tax-deductible goodwill | (26,161 | ) | (20,719 | ) | |||||||
Total deferred income tax liabilities | (54,772 | ) | (40,714 | ) | |||||||
Net deferred income tax liabilities | $ | (47,213 | ) | $ | (31,634 | ) | |||||
In general, it is our practice and intention to reinvest the earnings of our non-U.S. subsidiaries in those operations. As of fiscal year end 2015, we have not made a provision for U.S. or additional foreign withholding taxes on approximately $17.5 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that is indefinitely reinvested. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. | |||||||||||
The following table summarizes the Net Operating Loss Carry forward: | |||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Federal | $ | — | $ | 1,089 | |||||||
State | $ | 1,919 | $ | 1,919 | |||||||
Foreign | $ | — | $ | 1,260 | |||||||
As of February 28, 2015, the Company had state NOL carry forwards of $31.9 million which, if unused, will begin to expire in 2025. | |||||||||||
We believe that it is more likely than not that the benefit from certain state NOL carry forwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $1.6 million on the deferred tax assets related to these state NOL carry forwards. We will review this risk within the next fiscal year and may conclude that a significant portion of the valuation allowance will no longer be needed. The tax benefits related to any reversal of the valuation allowance will be recognized as a reduction of income tax expense. | |||||||||||
As of fiscal 2015, a portion of our deferred tax assets were the result of state NOL carry forwards. A valuation allowance of $1.6 million and $3.8 million was recorded against our gross deferred tax asset balance as of fiscal year end 2015 and 2014, respectively. For the year ended February 28, 2015, we recorded a net valuation allowance release of $2.2 million (comprising of a full-year valuation release of $1.2 million related to foreign operations, and $1.0 million related to NOLs from purchased stock of Aquilex SRO, in March 2013), on the basis of local tax authority reassessment of the amount which was realized in local tax jurisdictions and on local income tax returns. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets (Notes) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and intangible assets | Goodwill and intangible assets | ||||||||||||||||
Goodwill is not amortized but is subject to annual impairment tests. Other intangible assets are amortized over their estimated useful lives. | |||||||||||||||||
Changes in goodwill by segment during the year are as follows: | |||||||||||||||||
Segment | March 1, | Acquisitions | Foreign | February 28, | |||||||||||||
2014 | Exchange | 2015 | |||||||||||||||
Translation | |||||||||||||||||
(In thousands) | |||||||||||||||||
Galvanizing Services | $ | 94,731 | $ | 3,306 | $ | (2,499 | ) | $ | 95,538 | ||||||||
Energy | 183,825 | 807 | (1,096 | ) | 183,536 | ||||||||||||
Total | $ | 278,556 | $ | 4,113 | $ | (3,595 | ) | $ | 279,074 | ||||||||
Segment | March 1, | Acquisitions | Foreign | February 28, | |||||||||||||
2013 | Exchange | 2014 | |||||||||||||||
Translation | |||||||||||||||||
(In thousands) | |||||||||||||||||
Galvanizing Services | $ | 96,735 | $ | — | $ | (2,004 | ) | $ | 94,731 | ||||||||
Energy | 75,151 | 109,636 | (962 | ) | 183,825 | ||||||||||||
Total | $ | 171,886 | $ | 109,636 | $ | (2,966 | ) | $ | 278,556 | ||||||||
The Company completes its annual impairment analysis of goodwill on December 31st of each year. As a result, the Company determined that there was no impairment of goodwill. | |||||||||||||||||
Amortizable intangible assets consisted of the following as of February 28: | |||||||||||||||||
2015 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Amortizable intangible assets | |||||||||||||||||
Customer related intangibles | $ | 159,235 | $ | 158,913 | |||||||||||||
Non-compete agreements | 5,715 | 5,037 | |||||||||||||||
Trademarks | 5,042 | 5,110 | |||||||||||||||
Technology | 7,400 | 7,400 | |||||||||||||||
Certifications | 209 | 232 | |||||||||||||||
Engineering drawings | 24,600 | 24,600 | |||||||||||||||
Backlog | 8,355 | 8,440 | |||||||||||||||
210,556 | 209,732 | ||||||||||||||||
Less accumulated amortization | (56,699 | ) | (39,300 | ) | |||||||||||||
$ | 153,857 | $ | 170,432 | ||||||||||||||
The Company recorded amortization expense of $18.0 million, $18.2 million and $10.0 million for fiscal 2015, 2014 and 2013, respectively. The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter. | |||||||||||||||||
(In thousands) | |||||||||||||||||
2016 | $ | 15,666 | |||||||||||||||
2017 | 15,402 | ||||||||||||||||
2018 | 14,812 | ||||||||||||||||
2019 | 14,136 | ||||||||||||||||
2020 | 13,666 | ||||||||||||||||
Thereafter | 80,175 | ||||||||||||||||
Total | $ | 153,857 | |||||||||||||||
Earnings_Per_Share_Notes
Earnings Per Share (Notes) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings per share | Earnings per share | ||||||||||||
Basic earnings per share is based on the weighted average number of shares outstanding during each year. Diluted earnings per share were similarly computed but have been adjusted for the dilutive effect of the weighted average number of stock options, stock appreciation rights and restricted stock units outstanding. The shares and earnings per share were adjusted to reflect our two for one stock split effected in the form of a share dividend approved by the Board of Directors on June 28, 2012, and paid on July 30, 2012. All share data has been retroactively restated. | |||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator: | |||||||||||||
Net income for basic and diluted earnings per common share | $ | 64,943 | $ | 59,597 | $ | 60,456 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per common share–weighted average shares | 25,676 | 25,514 | 25,320 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee and Director stock awards | 102 | 179 | 241 | ||||||||||
Denominator for diluted earnings per common share | 25,778 | 25,693 | 25,561 | ||||||||||
Earnings per share basic and diluted: | |||||||||||||
Basic earnings per common share | $ | 2.53 | $ | 2.34 | $ | 2.39 | |||||||
Diluted earnings per common share | $ | 2.52 | $ | 2.32 | $ | 2.37 | |||||||
Stock appreciation rights of approximately 80,683 and 113,887 were excluded from the computation of diluted earnings per share for fiscal 2015 and 2014, respectively, as the effect would be anti-dilutive. There were zero stock options or stock appreciation rights outstanding with exercise prices greater than the average market price of common shares for fiscal 2013. |
Stock_Compensation_Notes
Stock Compensation (Notes) | 12 Months Ended | |||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||
Stock compensation | Share-based compensation | |||||||||||||||||||||
The Company has one share-based compensation plan, the 2014 Long Term Incentive Plan (the “Plan”). The purpose of the Plan is to promote the growth and prosperity of the Company by permitting the Company to grant to its employees, directors and advisors various types of restricted stock unit awards, stock appreciation rights and options to purchase common stock of the Company. The maximum number of shares that may be issued under the Plan is 1,500,000 shares. As of February 28, 2015, the Company had approximately 1,473,148 shares reserved for future issuance under the Plan. | ||||||||||||||||||||||
Restricted Stock Unit Awards | ||||||||||||||||||||||
Restricted stock unit awards are valued at the market price of our common stock on the grant date. These awards generally have a three year cliff vesting schedule but may vest early in accordance with the Plan’s accelerated vesting provisions. | ||||||||||||||||||||||
Activity in our non-vested restricted stock unit awards for the year ended February 28, 2015 was as follows: | ||||||||||||||||||||||
Restricted | Weighted | |||||||||||||||||||||
Stock Units | Average Grant | |||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||
Non-Vested Balance as of February 28, 2014 | 70,352 | $ | 34.95 | |||||||||||||||||||
Granted | 48,616 | 42.89 | ||||||||||||||||||||
Vested | (28,647 | ) | 28.57 | |||||||||||||||||||
Forfeited | (12,875 | ) | 40.87 | |||||||||||||||||||
Non-Vested Balance as of February 28, 2015 | 77,446 | $ | 41.31 | |||||||||||||||||||
The total fair value of restricted stock units vested during fiscal years 2015, 2014, and 2013 was $0.8 million, $1.9 million and $0.5 million, respectively. For fiscal years ended 2015, 2014 and 2013, there were 77,446, 70,352 and 109,430, respectively, of non vested restricted stock units outstanding with weighted average grant date fair values of $41.31, $34.95 and $20.73, respectively. | ||||||||||||||||||||||
Stock Appreciation Rights and Option Awards | ||||||||||||||||||||||
Stock appreciation rights and option awards are granted with an exercise price equal to the market value of our common stock on the date of grant. These awards generally have a contractual term of 7 years and vest ratably over a period of 3 years although some may vest immediately on issuance. These awards are valued using the Black-Scholes option pricing model. | ||||||||||||||||||||||
A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, were as follows: | ||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Options/ | Weighted | Options/ | Weighted | Options/ | Weighted | |||||||||||||||||
SAR’s | Average | SAR’s | Average | SAR’s | Average | |||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding at beginning of year | 396,174 | $ | 26.64 | 439,863 | $ | 19.12 | 573,000 | $ | 15.46 | |||||||||||||
Granted | 126,532 | 43.92 | 116,032 | 45.2 | 118,107 | 25.77 | ||||||||||||||||
Exercised | (98,942 | ) | 22.79 | (159,721 | ) | 19.19 | (251,240 | ) | 13.84 | |||||||||||||
Forfeited | (46,782 | ) | 44.14 | — | — | (4 | ) | 2.11 | ||||||||||||||
Outstanding at end of year | 376,982 | $ | 31.27 | 396,174 | $ | 26.64 | 439,863 | $ | 19.12 | |||||||||||||
Exercisable at end of year | 204,107 | $ | 21.55 | 153,343 | $ | 15.32 | 115,395 | $ | 13.14 | |||||||||||||
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year | $ | 16.94 | $ | 13.68 | $ | 8.81 | ||||||||||||||||
The average remaining contractual term for those options and stock appreciation rights outstanding as of February 28, 2015 was 4.13 years, with an aggregate intrinsic value of $17.1 million. The average remaining contractual terms for those options and stock appreciation rights that are exercisable as of February 28, 2014 was 2.82 years, with an aggregate intrinsic value of $9.3 million. As of February 28, 2015, the intrinsic value of options/stock appreciation rights exercised was $4.5 million. | ||||||||||||||||||||||
The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015. | ||||||||||||||||||||||
Range of | Total | Average | Weighted | Options / | Weighted | |||||||||||||||||
Exercise Prices | Options/ | Remaining | Average | SAR’s | Average | |||||||||||||||||
SAR’s | Life | Exercise | Currently | Exercise | ||||||||||||||||||
Price | Exercisable | Price | ||||||||||||||||||||
$9.06 | 48,510 | 1 | $ | 9.06 | 48,510 | $ | 9.06 | |||||||||||||||
$15.84 | 54,546 | 2 | $ | 15.84 | 54,546 | $ | 15.84 | |||||||||||||||
$20.91 | 40,950 | 3 | $ | 20.91 | 40,950 | $ | 20.91 | |||||||||||||||
$25.67 | 38,932 | 4 | $ | 25.67 | 24,082 | $ | 25.67 | |||||||||||||||
$39.65 | 950 | 5 | $ | 39.65 | — | $ | 39.65 | |||||||||||||||
$43.92 | 112,411 | 6 | $ | 43.92 | 8,089 | $ | 43.92 | |||||||||||||||
$45.26 | 40,000 | 6 | $ | 45.26 | 10,000 | $ | 45.26 | |||||||||||||||
$45.36 | 39,924 | 5 | $ | 45.36 | 17,677 | $ | 45.36 | |||||||||||||||
$46.43 | 759 | 5 | $ | 46.43 | 253 | $ | 46.43 | |||||||||||||||
$ 9.06 - $46.43 | 376,982 | 4.13 | $ | 31.27 | 204,107 | $ | 21.55 | |||||||||||||||
Assumptions used in the Black-Scholes option pricing model for the last three fiscal years were as follows for all stock appreciation rights plans: | ||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Expected term in years | 4.5 | 4.5 | 4.5 | |||||||||||||||||||
Expected dividend yield | 1.20% – 1.32% | 1.21% - 1.49% | 1.76% – 1.95% | |||||||||||||||||||
Expected price volatility | 35.39% – 40.00% | 36.34% – 53.00% | 45.00% – 47.83% | |||||||||||||||||||
Risk-free interest rate | 2.32 – 2.73 | 0.75 - 2.98 | 0.59 – 0.89 | |||||||||||||||||||
Directors Grants | ||||||||||||||||||||||
During fiscal 2013 the Company granted each of its independent directors 1,000 shares of the Company’s common stock which subsequently split 2 for 1. In fiscal 2014 and 2015, each of its independent directors were granted 2,000 shares of the Company’s common stock. These common stock grants were valued at $44.90, $36.70 and $32.51 per share for fiscal 2015, 2014 and 2013, respectively, which was the market price of our common stock on the grant date. | ||||||||||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||||||||||
The Company also has an employee stock purchase plan, which allows employees of the Company to purchase common stock of the Company through accumulated payroll deductions. Offerings under this plan have a duration of 24 months (the "offering period"). On the first day of an offering period (the “enrollment date”) the participant is granted the option to purchase shares on each exercise date at the lower of 85% of the market value of a share of our common stock on the enrollment date or the exercise date. The participant’s right to purchase common stock under the plan is restricted to no more than $25,000 per calendar year and the participant may not purchase more than 5,000 shares during any offering period. Participants may terminate their interest in a given offering or a given exercise period by withdrawing all of their accumulated payroll deductions at any time prior to the end of the offering period. | ||||||||||||||||||||||
Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows: | ||||||||||||||||||||||
Year Ended February 28, | 2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Compensation Expense | $ | 4,080 | $ | 3,703 | $ | 3,175 | ||||||||||||||||
Income tax benefits | $ | 1,428 | $ | 1,296 | $ | 1,111 | ||||||||||||||||
Unrecognized compensation cost related to all the above at February 28, 2015 totaled $4.1 million. These costs are expected to be recognized over a weighted period of 2.66 years. | ||||||||||||||||||||||
The Company did not receive cash from the exercise of stock options for the years ended February 28, 2015 and 2014. Cash received from the exercise of stock options for the year ended February 28, 2013 was insignificant. The actual tax benefit realized for tax deductions from options exercised each of these years totaled $0.3 million, $1.6 million and $1.3 million, respectively. | ||||||||||||||||||||||
The Company’s policy is to issue shares required under these plans from the Company’s treasury shares or from the Company’s authorized but unissued shares. The Company has no formal or informal plan to repurchase shares on the open market to satisfy these requirements. |
Longterm_Debt_Notes
Long-term Debt (Notes) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term debt | ebt | ||||||||
Debt consisted of the following: | 2015 | 2014 | |||||||
(In thousands) | |||||||||
Senior Notes, due in balloon payment in January 2021 | $ | 125,000 | $ | 125,000 | |||||
Senior Notes, due in annual installments of $14,286 beginning in March 2012 through March 2018 | $ | 57,143 | $ | 71,428 | |||||
Term Note, due in quarterly installments beginning in June 2013 through March 2018 | $ | 65,625 | $ | 72,188 | |||||
Revolving line of credit with bank | $ | 90,080 | $ | 137,000 | |||||
Total debt | $ | 337,848 | $ | 405,616 | |||||
Less amount due within one year | $ | (21,866 | ) | $ | (20,848 | ) | |||
Total long-term debt | $ | 315,982 | $ | 384,768 | |||||
On March 27, 2013, we entered into a Credit Agreement (the “Credit Agreement”) with Bank of America and other lenders. The Credit Agreement provided for a $75.0 million term facility and a $225.0 million revolving credit facility that included a $75.0 million “accordion” feature. The Credit Agreement is used to provide for working capital needs, capital improvements, dividends, future acquisitions and letter of credit needs. | |||||||||
Interest rates for borrowings under the Credit Agreement are based on either a Eurodollar Rate or a Base Rate plus a margin ranging from 1.0% to 2.0% depending on our Leverage Ratio. The Eurodollar Rate is defined as LIBOR for a term equivalent to the borrowing term (or other similar interbank rates if LIBOR is unavailable). The Base Rate is defined as the highest of the applicable Fed Funds rate plus 0.50%, the Prime rate, or the Eurodollar Rate plus 1.0% at the time of borrowing. The Credit Agreement also carries a Commitment Fee for the unfunded portion ranging from 0.20% to 0.30% per annum, depending on our Leverage Ratio. | |||||||||
The $75.0 million term facility under the Credit Agreement requires quarterly principal and interest payments commencing on June 30, 2013 through March 27, 2018, the maturity date. | |||||||||
The Credit Agreement provides various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $230.0 million, plus 50.0% of future net income, b) maintain on a consolidated basis a Leverage Ratio (as defined in the Credit Agreement) not to exceed 3.25:1.0, c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Credit Agreement) of at least 1.75:1.0 and d) not to make Capital Expenditures (as defined in the Credit Agreement) on a consolidated basis in an amount in excess of $60.0 million during the fiscal year ended February 28, 2014 and $50.0 million during any subsequent year. | |||||||||
As of February 28, 2015, we had $90.1 million of outstanding debt against the revolving credit facility provided and letters of credit outstanding in the amount of $13.0 million, which left approximately $122.0 million of additional credit available under the Credit Agreement. | |||||||||
On March 31, 2008, the Company entered into a Note Purchase Agreement (the “Note Purchase Agreement”) pursuant to which the Company issued $100.0 million aggregate principal amount of its 6.24% unsecured Senior Notes (the “2008 Notes”) due March 31, 2018 through a private placement (the “2008 Note Offering”). Pursuant to the Note Purchase Agreement, the Company’s payment obligations with respect to the 2008 Notes may be accelerated upon any Event of Default, as defined in the Note Purchase Agreement. | |||||||||
The Company entered into an additional Note Purchase Agreement on January 21, 2011 (the “2011 Agreement”), pursuant to which the Company issued $125.0 million aggregate principal amount of its 5.42% unsecured Senior Notes (the “2011 Notes”), due in January of 2021, through a private placement (the “2011 Note Offering”). Pursuant to the 2011 Agreement, the Company's payment obligations with respect to the 2011 Notes may be accelerated under certain circumstances. | |||||||||
The 2008 Notes and the 2011 Notes each provide for various financial covenants requiring us, among other things, to a) maintain on a consolidated basis net worth equal to at least the sum of $116.9 million plus 50.0% of future net income; b) maintain a ratio of indebtedness to EBITDA (as defined in Note Purchase Agreement) not to exceed 3.25:1.00; c) maintain on a consolidated basis a Fixed Charge Coverage Ratio (as defined in the Note Purchase Agreement) of at least 2.0:1.0; d) not at any time permit the aggregate amount of all Priority Indebtedness (as defined in the Note Purchase Agreement) to exceed 10.0% of Consolidated Net Worth (as defined in the Note Purchase Agreement). | |||||||||
As of February 28, 2015, the Company was in compliance with all of its debt covenants. | |||||||||
Maturities of debt are as follows: | |||||||||
Fiscal Year | (In thousands) | ||||||||
2016 | $ | 21,866 | |||||||
2017 | 23,192 | ||||||||
2018 | 16,629 | ||||||||
2019 | 151,161 | ||||||||
2020 | — | ||||||||
Thereafter | 125,000 | ||||||||
Total | $ | 337,848 | |||||||
Operating_segments_Notes
Operating segments (Notes) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Operating segments | Operating segments | ||||||||||||
Information regarding operations and assets by segment was as follows: | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net sales: | (In thousands) | ||||||||||||
Energy | $ | 458,339 | $ | 416,106 | $ | 233,555 | |||||||
Galvanizing Services | 358,348 | 335,617 | 337,039 | ||||||||||
$ | 816,687 | $ | 751,723 | $ | 570,594 | ||||||||
Operating income: | |||||||||||||
Energy | $ | 38,703 | $ | 44,513 | $ | 32,073 | |||||||
Galvanizing Services | 88,562 | 87,808 | 88,505 | ||||||||||
Corporate | (20,440 | ) | (32,207 | ) | (22,594 | ) | |||||||
Total Operating Income | 106,825 | 100,114 | 97,984 | ||||||||||
Interest expense | 16,561 | 18,407 | 13,073 | ||||||||||
Net gain on sale of property, plant and equipment and insurance proceeds | (2,525 | ) | (8,039 | ) | (8,303 | ) | |||||||
Other (income) expense, net | 2,659 | (4,165 | ) | (1,155 | ) | ||||||||
Income before income taxes | $ | 90,130 | $ | 93,911 | $ | 94,369 | |||||||
Depreciation and amortization: | |||||||||||||
Energy | $ | 20,725 | $ | 19,959 | $ | 8,587 | |||||||
Galvanizing Services | 23,964 | 22,008 | 19,501 | ||||||||||
Corporate | 1,400 | 1,338 | 1,275 | ||||||||||
$ | 46,089 | $ | 43,305 | $ | 29,363 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment: | |||||||||||||
Energy | $ | 10,647 | $ | 284,514 | $ | 79,513 | |||||||
Galvanizing Services | 26,928 | 33,282 | 81,604 | ||||||||||
Corporate | 3,320 | 1,378 | 864 | ||||||||||
$ | 40,895 | $ | 319,174 | $ | 161,981 | ||||||||
Total assets: | |||||||||||||
Energy | $ | 523,247 | $ | 542,809 | $ | 261,074 | |||||||
Galvanizing Services | 378,823 | 378,358 | 370,142 | ||||||||||
Corporate | 34,844 | 32,086 | 62,989 | ||||||||||
$ | 936,914 | $ | 953,253 | $ | 694,205 | ||||||||
Geographic net sales: | |||||||||||||
United States | $ | 631,544 | $ | 601,674 | $ | 503,699 | |||||||
Other countries | 189,855 | 150,049 | 66,895 | ||||||||||
Eliminations | (4,712 | ) | — | — | |||||||||
$ | 816,687 | $ | 751,723 | $ | 570,594 | ||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 173,712 | $ | 171,727 | $ | 127,410 | |||||||
Canada | 20,289 | 23,779 | 27,066 | ||||||||||
Other Countries | 2,582 | 2,133 | — | ||||||||||
$ | 196,583 | $ | 197,639 | $ | 154,476 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Notes) | 12 Months Ended | |||
Feb. 28, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and contingencies | Commitments and contingencies | |||
Leases | ||||
The Company is obligated under various operating leases for property, plant and equipment. As February 28, 2015, future minimum lease payments under non-cancelable operating leases with initial terms in excess of one year are summarized in the below table: | ||||
Fiscal Year: | (In thousands) | |||
2016 | $ | 6,955 | ||
2017 | 6,415 | |||
2018 | 4,561 | |||
2019 | 3,257 | |||
2020 | 1,204 | |||
Thereafter | 2,758 | |||
Total | $ | 25,150 | ||
Rent expense was $14.1 million, $11.0 million and $7.8 million for fiscal years 2015, 2014 and 2013, respectively. Rent expense includes various equipment rentals that do not meet the terms of a non-cancelable lease or that have initial terms of less than one year. | ||||
Commodity pricing | ||||
We have no contracted commitments for any commodities including steel, aluminum, natural gas, cooper, zinc, nickel based alloys, except for those entered into under the normal course of business. | ||||
Other | ||||
At February 28, 2015, the Company had outstanding letters of credit in the amount of $13.0 million. These letters of credit were issued to customers served by our Energy Segment to cover insurance reserves and any potential warranty costs and performance issues and bid bonds. In addition, as of February 28, 2015, a warranty reserve in the amount of $2.3 million was established to offset any future warranty claims. |
Quarterly_Financial_Informatio
Quarterly Financial Information, Unaudited (Notes) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly financial information, Unaudited | uarterly financial data (Unaudited) | ||||||||||||||||
Quarter ended | |||||||||||||||||
May 31, | August 31, | November 30, | February 28, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 216,126 | $ | 193,416 | $ | 224,833 | $ | 182,312 | |||||||||
Gross profit | 55,389 | 42,100 | 60,775 | 47,432 | |||||||||||||
Net income | 14,925 | 13,769 | 19,965 | 16,283 | |||||||||||||
Basic earnings per share | 0.58 | 0.54 | 0.78 | 0.63 | |||||||||||||
Diluted earnings per share | 0.58 | 0.53 | 0.77 | 0.63 | |||||||||||||
Quarter ended | |||||||||||||||||
May 31, | August 31, | November 30, | February 28, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 183,175 | $ | 189,782 | $ | 197,755 | $ | 181,011 | |||||||||
Gross profit | 50,715 | 55,905 | 53,361 | 45,724 | |||||||||||||
Net income | 14,547 | 16,363 | 18,445 | 10,242 | |||||||||||||
Basic earnings per share | 0.57 | 0.64 | 0.72 | 0.4 | |||||||||||||
Diluted earnings per share | 0.57 | 0.64 | 0.72 | 0.4 | |||||||||||||
Acquisitions
Acquisitions | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisitions | Acquisitions | ||||||||
On June 30, 2014, we completed our acquisition of substantially all the assets of Zalk Steel & Supply Co. (“Zalk Steel”), a Minneapolis, Minnesota-based galvanizing company, for a purchase price of $10.5 million and the assumption of $0.3 million in liabilities. The Company recorded $3.3 million of goodwill, which has been allocated to the Galvanizing Services Segment, and $3.4 million of intangible assets associated with this acquisition. The intangible assets associated with the acquisition consist primarily of trade names, customer relationships and non-compete agreements. These intangible assets are being amortized on a straight-line basis over a period of 19 years for customer relationships, 19 years for trade names, and 5 years for non-compete agreements. Zalk Steel was acquired to expand AZZ's existing geographic footprint in North America. The goodwill arising from this acquisition was allocated to the Galvanizing Segment and is deductible for income tax purposes. | |||||||||
Unaudited pro forma results of operations assuming the Zalk Steel acquisition had taken place at the beginning of each period are not provided because the historical operating results of Zalk Steel were not significant and pro forma results would not be significantly different from reported results for the periods presented. | |||||||||
On March 29, 2013, we completed our acquisition of all of the equity securities of Aquilex Specialty Repair and Overhaul LLC, a Delaware limited liability company (“Aquilex SRO”), pursuant to the terms of the Securities Purchase Agreement dated February 22, 2013 (the “Purchase Agreement”). Aquilex SRO provides the energy industry with specialty repair and overhaul solutions designed to improve mechanical integrity and extend component life. Aquilex SRO offers services to a diverse base of blue-chip customers in the nuclear, fossil power, refining, chemical processing, pulp and waste-to-energy industries, serving clients that place a high value on reliability, quality and safety. Aquilex SRO’s offering is differentiated through advanced proprietary tooling and process technologies delivered by a uniquely skilled specialized workforce. The acquisition is part of our strategy to expand our offerings in the Energy Segment to enhance our presence in the power generation market. The Purchase Agreement provided for AZZ's acquisition of all equity securities of Aquilex SRO for cash consideration in the amount of $275.7 million, which was comprised of $271.8 million as cash paid at closing and $3.9 million subsequently paid in connection with a purchase price adjustment based on working capital pursuant to the Purchase Agreement. | |||||||||
Under the acquisition method of accounting, the total purchase price was allocated to Aquilex SRO’s net identifiable assets based on their estimated fair values as of March 29, 2013, the date on which AZZ acquired control of Aquilex SRO through cash purchase. The excess of the purchase price over the net identifiable assets was recorded as goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities of Aquilex SRO assumed at the date of acquisition: | |||||||||
($ in thousands) | |||||||||
Current Assets | $ | 78,619 | |||||||
Property and Equipment | 27,669 | ||||||||
Intangible Assets | 87,100 | ||||||||
Goodwill | 109,636 | ||||||||
Other Assets | 205 | ||||||||
Total Assets Acquired | 303,229 | ||||||||
Current Liabilities | (27,527 | ) | |||||||
Net Assets Acquired | $ | 275,702 | |||||||
The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also synergies expected to arise. This goodwill has been allocated to the Energy Segment and will not be deductible for income tax purposes. All of the $87.1 million of intangible assets acquired are assigned to customer related intangibles and technology. The intangible assets are being amortized over 14 years for customer related intangibles, 19 years for trade names and 3-9 years for technology on a straight line basis. During fiscal 2014, we expensed $5.4 million in acquisition costs related to the acquisition of Aquilex SRO. | |||||||||
The following unaudited pro forma information assumes that the acquisition of Aquilex SRO took place on March 1, 2012 for the income statements for the years ended February 28, 2014, and February 28, 2013. | |||||||||
2014 | 2013 | ||||||||
(Unaudited) (In thousands, except for per share amounts) | |||||||||
Net sales: | $ | 774,818 | $ | 783,126 | |||||
Net Income | $ | 60,080 | $ | 58,372 | |||||
Earnings Per Common Share | |||||||||
Basic Earnings Per Share | $ | 2.35 | $ | 2.31 | |||||
Diluted Earnings Per Share | $ | 2.34 | $ | 2.28 | |||||
On January 2, 2013, we acquired G3 Galvanizing Limited ("G3"), a galvanizing operation in Halifax, Nova Scotia. This acquisition is part of the stated AZZ strategy to continue the geographic expansion of its served markets that should provide a basis for continued growth of the Galvanizing Services Segment of AZZ. The purchase price paid in connection with the asset purchase was $12.0 million and the assumption of $3.1 million in liabilities. Goodwill of $4.2 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and will not be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. During fiscal 2013, we expensed $0.5 million in acquisition costs related to the acquisition of G3. | |||||||||
On October 1, 2012, we completed the acquisition of substantially all of the assets of Galvcast Manufacturing Inc. (“Galvcast”), a Canadian galvanizing company with operations in Ontario, and certain real property owned by an affiliate of Galvcast. The purchase price paid in connection with the asset purchase was $48.0 million and the assumption of approximately $0.9 million in liabilities. Goodwill of $15.7 million resulting from the acquisition has been allocated to the Galvanizing Services Segment and 75% of the goodwill will be deductible for tax purposes. The goodwill recorded in connection with the acquisition is primarily attributable to a larger geographic footprint and also reflects the synergies that are expected to arise. This acquisition was made to compliment and expand our existing geographic Canadian footprint. During fiscal 2013, we expensed $0.3 million in acquisition costs related to the acquisition of Galvcast. | |||||||||
On June 1, 2012, we completed the acquisition of substantially all of the assets of Nuclear Logistics Incorporated (“NLI”). The purchase price paid in connection with the asset purchase was $77.0 million, net of cash acquired, along with the assumption of certain liabilities and the payoff of $3.8 million of notes payable at closing. In connection with our acquisition of NLI on June 1, 2012, we may be obligated to make an additional payment of up to $20.0 million which will be based on the future financial performance of the NLI business. Based on the cumulative performance to date and current forecast, we do not believe this additional payment will be probable and based on that determination, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. During fiscal 2013, we expensed $0.9 million in acquisition costs related to the acquisition of NLI. | |||||||||
The following unaudited pro forma information assumes that the acquisition of NLI took place on March 1, 2012 for the income statements for the year ended February 28, 2013. | |||||||||
2013 | |||||||||
(Unaudited) (In thousands, except for per share amounts) | |||||||||
Net sales: | $ | 583,743 | |||||||
Net Income | $ | 60,602 | |||||||
Earnings Per Common Share | |||||||||
Basic Earnings Per Share | $ | 2.39 | |||||||
Diluted Earnings Per Share | $ | 2.37 | |||||||
The total purchase price was allocated to NLI’s net tangible and identifiable intangible assets based on their estimated fair values as of June 1, 2012, the date on which AZZ acquired control of NLI. The excess of the purchase price over the net tangible and identifiable intangible assets was recorded as goodwill and will be allocated to the Energy Segment. The goodwill will be deductible for income tax purposes. The goodwill arising from this acquisition is mainly attributable to business synergies expected to arise between NLI and other AZZ subsidiaries along with the long term growth that is projected at NLI. The potential earn out payment with respect to NLI, as described above, was classified as a long term liability for purposes of the purchase price allocation, however, the accrual recorded at the end of fiscal 2014 of $9.1 million was reversed during the second quarter of fiscal 2015. AZZ has made an allocation of the purchase price as follows: | |||||||||
($ in thousands) | |||||||||
Current Assets | $ | 22,901 | |||||||
Property and Equipment | 1,416 | ||||||||
Intangible Assets | 50,600 | ||||||||
Goodwill | 32,323 | ||||||||
Other Assets | 58 | ||||||||
Total Assets Acquired | 107,298 | ||||||||
Current Liabilities | (17,866 | ) | |||||||
Long Term Liabilities | (12,388 | ) | |||||||
Net Assets Acquired | $ | 77,044 | |||||||
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Feb. 28, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
None. |
Schedule_II_Valuation_and_Qual
Schedule II : Valuation and Qualiying Accounts and Reserves (Notes) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||
Schedule II : Valuation and Qualifying Accounts and Reserves | Schedule II | ||||||||||||
AZZ incorporated | |||||||||||||
Valuation and Qualifying Accounts and Reserves | |||||||||||||
(In thousands) | |||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
Allowance for Doubtful Accounts | |||||||||||||
Balance at beginning of year | $ | 1,744 | $ | 1,000 | $ | 898 | |||||||
Additions (reductions) charged or credited to income | 458 | (116 | ) | 446 | |||||||||
Balances written off, net of recoveries | (700 | ) | (294 | ) | (344 | ) | |||||||
Other | — | 1,184 | — | ||||||||||
Effect of exchange rate | (30 | ) | (30 | ) | — | ||||||||
Balance at end of year | $ | 1,472 | $ | 1,744 | $ | 1,000 | |||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Feb. 28, 2015 | ||
Accounting Policies [Abstract] | ||
Basis of consolidation | Organization-AZZ incorporated (the “Company” “AZZ” or “We”) operates primarily in the United States of America and Canada and has recently begun operating in China, Brazil, Poland and the Netherlands. Information about the Company's operations by segment is included in Note 13 to the consolidated financial statements. | |
Basis of consolidation—The consolidated financial statements were prepared in accordance with the accounting principles generally accepted in the United States of America and include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||
Use of estimates | Use of estimates—The preparation of the financial statements in conformity with generally accepted accounting principles in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Concentration of credit risk | Concentrations of credit risk—Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents and trade accounts receivable. | |
The Company maintains cash and cash equivalents with various financial institutions. These financial institutions are located throughout the United States and Canada, as well as Europe, China and Brazil. The Company's policy is designed to limit exposure to any one institution. The Company performs periodic evaluations of the relative credit standing of those financial institutions that are considered in the Company's banking relationships and has not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk related to cash and cash equivalents. | ||
Concentrations of credit risk with respect to trade accounts receivable are limited due to the Company’s diversity by virtue of two operating segments, the number of customers, and the absence of a concentration of trade accounts receivable in a small number of customers. The Company performs continuous evaluations of the collectability of trade accounts receivable and allowance for doubtful accounts based upon historical losses, economic conditions and customer specific events. After all collection efforts are exhausted and an account is deemed uncollectible, it is written off against the allowance for doubtful accounts. Accounts receivable written off, net of recoveries, in fiscal 2015, 2014 and 2013 were approximately $0.7 million, $0.3 million and $0.3 million, respectively. Collateral is usually not required from customers as a condition of sale. | ||
Revenue recognition | Revenue recognition—The Company recognizes revenue for the Energy Segment upon transfer of title and risk to customer or based upon the percentage of completion method of accounting for electrical products built to customer specifications and services under long-term contracts. We typically recognize revenue for the Galvanizing Services Segment at completion of the service unless we specifically agree with the customer to hold its material for a predetermined period of time after the completion of the galvanizing process and, in that circumstance, we invoice and recognize revenue upon shipment. Customer advanced payments presented in the balance sheets arise from advanced payments received from our customers prior to shipment of the product and are not related to revenue recognized under the percentage of completion method. The extent of progress for revenue recognized using the percentage of completion method is measured by the ratio of contract costs incurred to date to total estimated contract costs at completion. Contract costs include direct labor and material and certain indirect costs. Selling, general and administrative costs are charged to expense as incurred. | |
Provisions for estimated losses, if any, on uncompleted contracts are made in the period in which such losses are able to be determined. The assumptions made in determining the estimated cost could differ from actual performance resulting in a different outcome for profits or losses than anticipated. | ||
Cash and cash equivalents | Cash and cash equivalents—The Company considers cash and cash equivalents to include cash on hand, deposits with banks and all highly liquid investments with an original maturity of three months or less. | |
Inventories | Inventories—Cost is determined principally using a weighted-average method for the Energy Segment and the first-in-first-out (FIFO) method for the Galvanizing Services Segment. | |
Property, plant and equipment | Property, plant and equipment—For financial reporting purposes, depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows: | |
Buildings and structures | 10-25 years | |
Machinery and equipment | 3-15 years | |
Furniture and fixtures | 3-15 years | |
Automotive equipment | 3 years | |
Computers and software | 3 years | |
Maintenance and repairs are charged to expense as incurred; renewals and betterments that significantly extend the useful life of the asset are capitalized. | ||
Intangible assets | Long-lived assets, intangible assets and goodwill—Purchased intangible assets included on the balance sheets are comprised of customer lists, backlogs, engineering drawings and non-compete agreements. Such intangible assets are being amortized using the straight-line method over the estimated useful lives of the assets ranging from two to nineteen years. The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. As of February 28, 2015, no impairment of long-lived assets, intangible assets or goodwill was determined. | |
Long-lived assets | The Company records impairment losses on long-lived assets, including identifiable intangible assets, when events and circumstances indicate that the assets might be impaired and the undiscounted projected cash flows associated with those assets are less than their carrying amount. In those situations, impairment loss on a long-lived asset is measured based on the excess of the carrying amount of the asset over the asset’s fair value. | |
Goodwill | For goodwill, the Company performs an annual impairment test on December 31st each year or as indicators are present. The test is calculated using the anticipated future cash flows after tax from our operating segments. Based on the present value of the future cash flows, we determine whether impairment may exist. A significant change in projected cash flows or cost of capital for future years could result in an impairment of goodwill in future years. Variables impacting future cash flows include, but are not limited to, the level of customer demand for and response to products and services we offer to the power generation market, the electrical transmission and distribution markets, the general industrial market and the hot dip galvanizing market; changes in economic conditions of these various markets; raw material and natural gas costs and availability of experienced labor and management to implement our growth strategies. | |
Debt issue costs | Debt issue costs—Debt issue costs, included in other assets, are amortized using the effective interest rate method over the term of the debt. | |
Income taxes | Income taxes—We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined on the basis of the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. | |
We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. In making such a determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. | ||
As applicable, we record uncertain tax positions in accordance with GAAP on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold, we recognize the largest amount of tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. We currently do not have any unrecognized tax benefits to record related to U.S. federal, state or, foreign tax exposure. We continue to review our tax exposure for any significant need to record unrecognized tax benefits in the future. | ||
The Company is subject to taxation in the U.S. and various state, provincial and local and foreign jurisdictions. With few exceptions, as of fiscal 2015, the Company is no longer subject to U.S. federal or state examinations by tax authorities for years before fiscal 2012. | ||
Stock-based compensation | Share-based compensation—The Company has granted stock options, stock appreciation rights or restricted stock units for a fixed number of shares to employees and directors. A discussion of share-based compensation can be found in Note 11 to the Consolidated Financial Statements. | |
Financial Instruments | Financial instruments—Fair value is an exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Hierarchy Levels 1, 2, or 3 are terms for the priority of inputs to valuation techniques used to measure fair value. Hierarchy Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy Level 2 inputs are inputs other than quoted prices included with Level 1 that are directly or indirectly observable for the asset or liability. Hierarchy Level 3 inputs are inputs that are not observable in the market. | |
The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and debt. Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our outstanding Senior Notes. For fiscal 2015 and 2014 the fair value of our senior outstanding notes, as described in Note 12 to the Consolidated Financial Statements, was approximately $164.4 million and $179.4 million, respectively. These fair values were determined using the discounted cash flow at the market rate as well as the applicable market interest rates classified as Level 2 inputs. During fiscal 2015 a principal payment was made in the amount of $14.3 million related to the $100.0 million unsecured Senior Notes due March 31, 2018, which accounts for a portion of the decrease in fair value for the compared periods in conjunction with lower market interest rates. | ||
Derivative financial instruments | Derivative financial instruments—From time to time, the Company uses derivatives to manage interest rate risk. The Company’s policy is to use derivatives for risk management purposes only, which includes maintaining the ratio between the Company’s fixed and floating rate debt obligations that management deems appropriate, and prohibits entering into such contracts for trading purposes. The Company enters into derivatives only with counterparties (primarily financial institutions) which have substantial financial wherewithal to minimize credit risk. As the result of the recent global financial crisis, a number of financial institutions have failed or required government assistance, and counterparties considered substantial may develop credit risk. The amount of gains or losses from the use of derivative financial instruments has not been and is not expected to be material to the Company’s consolidated financial statements. As of February 28, 2015, the Company had no derivative financial instruments. | |
Warranty reserves | Warranty reserves—Within other accrued liabilities, a reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products. Management periodically reviews the reserves, and adjustments are made accordingly. A provision for warranty on products is made on the basis of the Company’s historical experience and identified warranty issues. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship. | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)—On January 21, 2011, we entered into a Note Purchase Agreement, (the “2011 Agreement”) and incurred fixed rate, long-term indebtedness of $125.0 million in relation to the 2011 Agreement. See Note 10 to the Consolidated Financial Statements. In anticipation of the issuance of Senior Notes thereunder, we entered into a treasury lock hedging transaction with Bank of America Merrill Lynch (BAML) in order to eliminate the variability of cash flows on the forecasted fixed rate coupon of the debt during the pre-issuance period. The hedging transaction settled during the Company’s third fiscal quarter of fiscal 2011, and the Company received a payment from BAML in the amount of $0.8 million resulting therefrom. The notional value of the hedge was $75.0 million and qualified for hedge accounting as a cash flow hedge. The gain on the settlement was recorded as a component of Accumulated Other Comprehensive Income (Loss) and is being amortized to interest expense in the form of a credit over the life of the 10 year loan. Amortization of this gain to interest expense was recorded in a credit of $0.1 million for fiscal 2015, 2014, and 2013. | |
Accumulated Other Comprehensive Income (Loss) also includes foreign currency translation adjustments from our foreign subsidiaries consisting of Aquilex SRO, AZZ Trading (Shanghai), Blenkhorn and Sawle, Galvan, Galvcast and G3. | ||
Foreign Currency Translation | Foreign Currency Translation—The local currency is the functional currency for the Company’s foreign operations. Related assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet date, and revenues and expenses are translated at weighted-average exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income (loss). |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Accounting Policies [Abstract] | |||||||||
Property, Plant and Equipment | Following is a summary of property, plant and equipment: | ||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Land | $ | 16,004 | $ | 15,116 | |||||
Building and structures | 122,539 | 117,765 | |||||||
Machinery and equipment | 184,921 | 175,955 | |||||||
Furniture, fixtures, software and computers | 21,716 | 20,497 | |||||||
Automotive equipment | 2,351 | 2,429 | |||||||
Construction in progress | 12,193 | 8,277 | |||||||
359,724 | 340,039 | ||||||||
Less accumulated depreciation | (163,141 | ) | (142,400 | ) | |||||
Net property, plant, and equipment | $ | 196,583 | $ | 197,639 | |||||
Schedule of Warranty Reserve | The following is a roll-forward of amounts accrued for warranties (in thousands): | ||||||||
Balance at February 29, 2012 | $ | 1,670 | |||||||
Warranty costs incurred | (2,026 | ) | |||||||
Additions charged to income | 2,429 | ||||||||
Balance at February 28, 2013 | $ | 2,073 | |||||||
Warranty costs incurred | (2,246 | ) | |||||||
Additions charged to income | 1,511 | ||||||||
Balance at February 28, 2014 | $ | 1,338 | |||||||
Warranty costs incurred | (1,294 | ) | |||||||
Additions charged to income | 2,243 | ||||||||
Balance at February 28, 2015 | $ | 2,287 | |||||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory | Inventories (net) consisted of the following: | ||||||||
As of February 28, | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Raw materials | $ | 62,794 | $ | 64,817 | |||||
Work-in-process | 42,001 | 39,781 | |||||||
Finished goods | 2,902 | 2,983 | |||||||
$ | 107,697 | $ | 107,581 | ||||||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Property, Plant and Equipment [Line Items] | |||||||||
Property, Plant and Equipment | Following is a summary of property, plant and equipment: | ||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Land | $ | 16,004 | $ | 15,116 | |||||
Building and structures | 122,539 | 117,765 | |||||||
Machinery and equipment | 184,921 | 175,955 | |||||||
Furniture, fixtures, software and computers | 21,716 | 20,497 | |||||||
Automotive equipment | 2,351 | 2,429 | |||||||
Construction in progress | 12,193 | 8,277 | |||||||
359,724 | 340,039 | ||||||||
Less accumulated depreciation | (163,141 | ) | (142,400 | ) | |||||
Net property, plant, and equipment | $ | 196,583 | $ | 197,639 | |||||
Costs_and_Estimated_Earnings_O1
Costs and Estimated Earnings On Uncompleted Contracts (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Contractors [Abstract] | |||||||||
Costs in Excess of Billings and Billings in Excess of Costs | Costs and estimated earnings on uncompleted contracts consisted of the following: | ||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Costs incurred on uncompleted contracts | $ | 126,882 | $ | 158,224 | |||||
Estimated earnings | 50,487 | 65,063 | |||||||
177,369 | 223,287 | ||||||||
Less billings to date | 148,367 | 199,083 | |||||||
$ | 29,002 | $ | 24,204 | ||||||
The amounts noted above are included in the accompanying consolidated balance sheets under the following captions: | |||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Cost and estimated earnings in excess of billings on uncompleted contracts | $ | 33,676 | $ | 27,222 | |||||
Billings in excess of costs and estimated earnings on uncompleted contracts | (4,674 | ) | (3,018 | ) | |||||
$ | 29,002 | $ | 24,204 | ||||||
Other_Accrued_Liabilities_Tabl
Other Accrued Liabilities (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Other Liabilities Disclosure [Abstract] | |||||||||
Schedule of Accrued Liabilities | Other accrued liabilities consisted of the following: | ||||||||
2015 | 2014 | ||||||||
(In thousands) | |||||||||
Accrued interest | $ | 2,878 | $ | 3,415 | |||||
Tenant improvements | 745 | 984 | |||||||
Accrued warranty | 2,287 | 1,338 | |||||||
Commissions | 2,540 | 1,259 | |||||||
Personnel expenses | 6,034 | 5,579 | |||||||
Group medical insurance | 1,502 | 1,858 | |||||||
Other | 2,301 | 2,722 | |||||||
$ | 18,287 | $ | 17,155 | ||||||
Realignment_Costs_Tables
Realignment Costs (Tables) | 12 Months Ended | |||
Feb. 28, 2015 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Schedule of Restructuring Reserve by Type of Cost [Table Text Block] | The following table shows changes in the realignment accrual: | |||
Realignment Accrual | ||||
(in thousands) | ||||
Realignment costs accrued | $ | 3,952 | ||
Realignment costs utilized | (3,496 | ) | ||
Balance at February 28, 2015 | $ | 456 | ||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Feb. 28, 2015 | |||||||||||
Income Tax Disclosure [Abstract] | |||||||||||
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred income tax liability are as follows: | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Deferred income tax assets: | |||||||||||
Employee related items | $ | 4,690 | $ | 4,314 | |||||||
Inventories | 1,080 | 839 | |||||||||
Accrued warranty | 893 | 504 | |||||||||
Accounts receivable | 565 | 2,342 | |||||||||
Net operating loss carry forward | 1,919 | 4,268 | |||||||||
Other | — | 606 | |||||||||
9,147 | 12,873 | ||||||||||
Less: valuation allowance | (1,588 | ) | (3,793 | ) | |||||||
Total deferred income tax assets | 7,559 | 9,080 | |||||||||
Deferred income tax liabilities: | |||||||||||
Depreciation methods and property basis differences | (28,611 | ) | (19,995 | ) | |||||||
Other assets and tax-deductible goodwill | (26,161 | ) | (20,719 | ) | |||||||
Total deferred income tax liabilities | (54,772 | ) | (40,714 | ) | |||||||
Net deferred income tax liabilities | $ | (47,213 | ) | $ | (31,634 | ) | |||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of: | ||||||||||
2015 | 2014 | 2013 | |||||||||
Income before income taxes: | |||||||||||
Domestic | $ | 76,434 | $ | 83,495 | $ | 92,334 | |||||
Foreign | 13,696 | 10,416 | 2,035 | ||||||||
Income before income taxes | $ | 90,130 | $ | 93,911 | $ | 94,369 | |||||
Current provision: | |||||||||||
Federal | $ | 3,770 | $ | 28,901 | $ | 26,330 | |||||
Foreign | 3,025 | 1,903 | (2,600 | ) | |||||||
State and Local | 2,575 | 4,382 | 4,136 | ||||||||
Total current provision for income taxes | $ | 9,370 | $ | 35,186 | $ | 27,866 | |||||
Deferred provision (benefit): | |||||||||||
Federal | $ | 15,455 | $ | (2,143 | ) | $ | 2,024 | ||||
Foreign | (858 | ) | 1,230 | 3,455 | |||||||
State and Local | 1,220 | 41 | 568 | ||||||||
Total deferred provision for income taxes | $ | 15,817 | $ | (872 | ) | $ | 6,047 | ||||
Total provision for income taxes | $ | 25,187 | $ | 34,314 | $ | 33,913 | |||||
Summary of Operating Loss Carryforwards | The following table summarizes the Net Operating Loss Carry forward: | ||||||||||
2015 | 2014 | ||||||||||
(In thousands) | |||||||||||
Federal | $ | — | $ | 1,089 | |||||||
State | $ | 1,919 | $ | 1,919 | |||||||
Foreign | $ | — | $ | 1,260 | |||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation from the federal statutory income tax rate to the effective income tax rate is as follows: | ||||||||||
2015 | 2014 | 2013 | |||||||||
Statutory federal income tax rate | 35 | % | 35 | % | 35 | % | |||||
Permanent differences | 0.6 | 1.3 | 0.2 | ||||||||
State income taxes, net of federal income tax benefit | 2.7 | 3 | 3.1 | ||||||||
Benefit of Section 199 of the Code, manufacturing deduction | (2.4 | ) | (2.2 | ) | (2.6 | ) | |||||
Valuation allowance | (3.4 | ) | — | — | |||||||
Tax credits | (3.4 | ) | — | — | |||||||
Foreign tax rate differential | (0.7 | ) | (0.6 | ) | 0.2 | ||||||
Other | (0.5 | ) | — | — | |||||||
Effective income tax rate | 27.9 | % | 36.5 | % | 35.9 | % |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Goodwill | Changes in goodwill by segment during the year are as follows: | ||||||||||||||||
Segment | March 1, | Acquisitions | Foreign | February 28, | |||||||||||||
2014 | Exchange | 2015 | |||||||||||||||
Translation | |||||||||||||||||
(In thousands) | |||||||||||||||||
Galvanizing Services | $ | 94,731 | $ | 3,306 | $ | (2,499 | ) | $ | 95,538 | ||||||||
Energy | 183,825 | 807 | (1,096 | ) | 183,536 | ||||||||||||
Total | $ | 278,556 | $ | 4,113 | $ | (3,595 | ) | $ | 279,074 | ||||||||
Segment | March 1, | Acquisitions | Foreign | February 28, | |||||||||||||
2013 | Exchange | 2014 | |||||||||||||||
Translation | |||||||||||||||||
(In thousands) | |||||||||||||||||
Galvanizing Services | $ | 96,735 | $ | — | $ | (2,004 | ) | $ | 94,731 | ||||||||
Energy | 75,151 | 109,636 | (962 | ) | 183,825 | ||||||||||||
Total | $ | 171,886 | $ | 109,636 | $ | (2,966 | ) | $ | 278,556 | ||||||||
Schedule of Finite-Lived Intangible Assets by Major Class | Amortizable intangible assets consisted of the following as of February 28: | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
(In thousands) | |||||||||||||||||
Amortizable intangible assets | |||||||||||||||||
Customer related intangibles | $ | 159,235 | $ | 158,913 | |||||||||||||
Non-compete agreements | 5,715 | 5,037 | |||||||||||||||
Trademarks | 5,042 | 5,110 | |||||||||||||||
Technology | 7,400 | 7,400 | |||||||||||||||
Certifications | 209 | 232 | |||||||||||||||
Engineering drawings | 24,600 | 24,600 | |||||||||||||||
Backlog | 8,355 | 8,440 | |||||||||||||||
210,556 | 209,732 | ||||||||||||||||
Less accumulated amortization | (56,699 | ) | (39,300 | ) | |||||||||||||
$ | 153,857 | $ | 170,432 | ||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table projects the estimated amortization expense for the five succeeding fiscal years and thereafter. | ||||||||||||||||
(In thousands) | |||||||||||||||||
2016 | $ | 15,666 | |||||||||||||||
2017 | 15,402 | ||||||||||||||||
2018 | 14,812 | ||||||||||||||||
2019 | 14,136 | ||||||||||||||||
2020 | 13,666 | ||||||||||||||||
Thereafter | 80,175 | ||||||||||||||||
Total | $ | 153,857 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share: | ||||||||||||
Year Ended February 28, | |||||||||||||
2015 | 2014 | 2013 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator: | |||||||||||||
Net income for basic and diluted earnings per common share | $ | 64,943 | $ | 59,597 | $ | 60,456 | |||||||
Denominator: | |||||||||||||
Denominator for basic earnings per common share–weighted average shares | 25,676 | 25,514 | 25,320 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Employee and Director stock awards | 102 | 179 | 241 | ||||||||||
Denominator for diluted earnings per common share | 25,778 | 25,693 | 25,561 | ||||||||||
Earnings per share basic and diluted: | |||||||||||||
Basic earnings per common share | $ | 2.53 | $ | 2.34 | $ | 2.39 | |||||||
Diluted earnings per common share | $ | 2.52 | $ | 2.32 | $ | 2.37 | |||||||
Stock_Compensation_Tables
Stock Compensation (Tables) | 12 Months Ended | |||||||||||||||||||||
Feb. 28, 2015 | ||||||||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||||||||
Restricted Stock Unit Awards Non-Vested | Activity in our non-vested restricted stock unit awards for the year ended February 28, 2015 was as follows: | |||||||||||||||||||||
Restricted | Weighted | |||||||||||||||||||||
Stock Units | Average Grant | |||||||||||||||||||||
Date Fair Value | ||||||||||||||||||||||
Non-Vested Balance as of February 28, 2014 | 70,352 | $ | 34.95 | |||||||||||||||||||
Granted | 48,616 | 42.89 | ||||||||||||||||||||
Vested | (28,647 | ) | 28.57 | |||||||||||||||||||
Forfeited | (12,875 | ) | 40.87 | |||||||||||||||||||
Non-Vested Balance as of February 28, 2015 | 77,446 | $ | 41.31 | |||||||||||||||||||
Stock Appreciation Rights and Option Awards | A summary of the Company’s stock appreciation rights and option awards activity for the three years ended February 28, were as follows: | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Options/ | Weighted | Options/ | Weighted | Options/ | Weighted | |||||||||||||||||
SAR’s | Average | SAR’s | Average | SAR’s | Average | |||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||
Outstanding at beginning of year | 396,174 | $ | 26.64 | 439,863 | $ | 19.12 | 573,000 | $ | 15.46 | |||||||||||||
Granted | 126,532 | 43.92 | 116,032 | 45.2 | 118,107 | 25.77 | ||||||||||||||||
Exercised | (98,942 | ) | 22.79 | (159,721 | ) | 19.19 | (251,240 | ) | 13.84 | |||||||||||||
Forfeited | (46,782 | ) | 44.14 | — | — | (4 | ) | 2.11 | ||||||||||||||
Outstanding at end of year | 376,982 | $ | 31.27 | 396,174 | $ | 26.64 | 439,863 | $ | 19.12 | |||||||||||||
Exercisable at end of year | 204,107 | $ | 21.55 | 153,343 | $ | 15.32 | 115,395 | $ | 13.14 | |||||||||||||
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year | $ | 16.94 | $ | 13.68 | $ | 8.81 | ||||||||||||||||
Share-based Compensation Activity | The following table summarizes additional information about stock options and stock appreciation rights outstanding at February 28, 2015. | |||||||||||||||||||||
Range of | Total | Average | Weighted | Options / | Weighted | |||||||||||||||||
Exercise Prices | Options/ | Remaining | Average | SAR’s | Average | |||||||||||||||||
SAR’s | Life | Exercise | Currently | Exercise | ||||||||||||||||||
Price | Exercisable | Price | ||||||||||||||||||||
$9.06 | 48,510 | 1 | $ | 9.06 | 48,510 | $ | 9.06 | |||||||||||||||
$15.84 | 54,546 | 2 | $ | 15.84 | 54,546 | $ | 15.84 | |||||||||||||||
$20.91 | 40,950 | 3 | $ | 20.91 | 40,950 | $ | 20.91 | |||||||||||||||
$25.67 | 38,932 | 4 | $ | 25.67 | 24,082 | $ | 25.67 | |||||||||||||||
$39.65 | 950 | 5 | $ | 39.65 | — | $ | 39.65 | |||||||||||||||
$43.92 | 112,411 | 6 | $ | 43.92 | 8,089 | $ | 43.92 | |||||||||||||||
$45.26 | 40,000 | 6 | $ | 45.26 | 10,000 | $ | 45.26 | |||||||||||||||
$45.36 | 39,924 | 5 | $ | 45.36 | 17,677 | $ | 45.36 | |||||||||||||||
$46.43 | 759 | 5 | $ | 46.43 | 253 | $ | 46.43 | |||||||||||||||
$ 9.06 - $46.43 | 376,982 | 4.13 | $ | 31.27 | 204,107 | $ | 21.55 | |||||||||||||||
Share-based Compensation Fair Value Assumptions | Assumptions used in the Black-Scholes option pricing model for the last three fiscal years were as follows for all stock appreciation rights plans: | |||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||
Expected term in years | 4.5 | 4.5 | 4.5 | |||||||||||||||||||
Expected dividend yield | 1.20% – 1.32% | 1.21% - 1.49% | 1.76% – 1.95% | |||||||||||||||||||
Expected price volatility | 35.39% – 40.00% | 36.34% – 53.00% | 45.00% – 47.83% | |||||||||||||||||||
Risk-free interest rate | 2.32 – 2.73 | 0.75 - 2.98 | 0.59 – 0.89 | |||||||||||||||||||
Share-based compensation expense and related income tax | Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows: | |||||||||||||||||||||
Year Ended February 28, | 2015 | 2014 | 2013 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||
Compensation Expense | $ | 4,080 | $ | 3,703 | $ | 3,175 | ||||||||||||||||
Income tax benefits | $ | 1,428 | $ | 1,296 | $ | 1,111 | ||||||||||||||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Schedule of Debt | |||||||||
Debt consisted of the following: | 2015 | 2014 | |||||||
(In thousands) | |||||||||
Senior Notes, due in balloon payment in January 2021 | $ | 125,000 | $ | 125,000 | |||||
Senior Notes, due in annual installments of $14,286 beginning in March 2012 through March 2018 | $ | 57,143 | $ | 71,428 | |||||
Term Note, due in quarterly installments beginning in June 2013 through March 2018 | $ | 65,625 | $ | 72,188 | |||||
Revolving line of credit with bank | $ | 90,080 | $ | 137,000 | |||||
Total debt | $ | 337,848 | $ | 405,616 | |||||
Less amount due within one year | $ | (21,866 | ) | $ | (20,848 | ) | |||
Total long-term debt | $ | 315,982 | $ | 384,768 | |||||
Schedule of Maturities of Long-term Debt | Maturities of debt are as follows: | ||||||||
Fiscal Year | (In thousands) | ||||||||
2016 | $ | 21,866 | |||||||
2017 | 23,192 | ||||||||
2018 | 16,629 | ||||||||
2019 | 151,161 | ||||||||
2020 | — | ||||||||
Thereafter | 125,000 | ||||||||
Total | $ | 337,848 | |||||||
Operating_segments_Tables
Operating segments (Tables) | 12 Months Ended | ||||||||||||
Feb. 28, 2015 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Operations and assets by segment | Information regarding operations and assets by segment was as follows: | ||||||||||||
2015 | 2014 | 2013 | |||||||||||
Net sales: | (In thousands) | ||||||||||||
Energy | $ | 458,339 | $ | 416,106 | $ | 233,555 | |||||||
Galvanizing Services | 358,348 | 335,617 | 337,039 | ||||||||||
$ | 816,687 | $ | 751,723 | $ | 570,594 | ||||||||
Operating income: | |||||||||||||
Energy | $ | 38,703 | $ | 44,513 | $ | 32,073 | |||||||
Galvanizing Services | 88,562 | 87,808 | 88,505 | ||||||||||
Corporate | (20,440 | ) | (32,207 | ) | (22,594 | ) | |||||||
Total Operating Income | 106,825 | 100,114 | 97,984 | ||||||||||
Interest expense | 16,561 | 18,407 | 13,073 | ||||||||||
Net gain on sale of property, plant and equipment and insurance proceeds | (2,525 | ) | (8,039 | ) | (8,303 | ) | |||||||
Other (income) expense, net | 2,659 | (4,165 | ) | (1,155 | ) | ||||||||
Income before income taxes | $ | 90,130 | $ | 93,911 | $ | 94,369 | |||||||
Depreciation and amortization: | |||||||||||||
Energy | $ | 20,725 | $ | 19,959 | $ | 8,587 | |||||||
Galvanizing Services | 23,964 | 22,008 | 19,501 | ||||||||||
Corporate | 1,400 | 1,338 | 1,275 | ||||||||||
$ | 46,089 | $ | 43,305 | $ | 29,363 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment: | |||||||||||||
Energy | $ | 10,647 | $ | 284,514 | $ | 79,513 | |||||||
Galvanizing Services | 26,928 | 33,282 | 81,604 | ||||||||||
Corporate | 3,320 | 1,378 | 864 | ||||||||||
$ | 40,895 | $ | 319,174 | $ | 161,981 | ||||||||
Total assets: | |||||||||||||
Energy | $ | 523,247 | $ | 542,809 | $ | 261,074 | |||||||
Galvanizing Services | 378,823 | 378,358 | 370,142 | ||||||||||
Corporate | 34,844 | 32,086 | 62,989 | ||||||||||
$ | 936,914 | $ | 953,253 | $ | 694,205 | ||||||||
Geographic net sales: | |||||||||||||
United States | $ | 631,544 | $ | 601,674 | $ | 503,699 | |||||||
Other countries | 189,855 | 150,049 | 66,895 | ||||||||||
Eliminations | (4,712 | ) | — | — | |||||||||
$ | 816,687 | $ | 751,723 | $ | 570,594 | ||||||||
Property, plant and equipment, net: | |||||||||||||
United States | $ | 173,712 | $ | 171,727 | $ | 127,410 | |||||||
Canada | 20,289 | 23,779 | 27,066 | ||||||||||
Other Countries | 2,582 | 2,133 | — | ||||||||||
$ | 196,583 | $ | 197,639 | $ | 154,476 | ||||||||
Commitments_and_Contingencies_1
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Feb. 28, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Future Minimum Rental Payments for Operating Leases | ||||
Fiscal Year: | (In thousands) | |||
2016 | $ | 6,955 | ||
2017 | 6,415 | |||
2018 | 4,561 | |||
2019 | 3,257 | |||
2020 | 1,204 | |||
Thereafter | 2,758 | |||
Total | $ | 25,150 | ||
Quarterly_Financial_Informatio1
Quarterly Financial Information, Unaudited (Tables) | 12 Months Ended | ||||||||||||||||
Feb. 28, 2015 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||
Quarter ended | |||||||||||||||||
May 31, | August 31, | November 30, | February 28, | ||||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 216,126 | $ | 193,416 | $ | 224,833 | $ | 182,312 | |||||||||
Gross profit | 55,389 | 42,100 | 60,775 | 47,432 | |||||||||||||
Net income | 14,925 | 13,769 | 19,965 | 16,283 | |||||||||||||
Basic earnings per share | 0.58 | 0.54 | 0.78 | 0.63 | |||||||||||||
Diluted earnings per share | 0.58 | 0.53 | 0.77 | 0.63 | |||||||||||||
Quarter ended | |||||||||||||||||
May 31, | August 31, | November 30, | February 28, | ||||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Net sales | $ | 183,175 | $ | 189,782 | $ | 197,755 | $ | 181,011 | |||||||||
Gross profit | 50,715 | 55,905 | 53,361 | 45,724 | |||||||||||||
Net income | 14,547 | 16,363 | 18,445 | 10,242 | |||||||||||||
Basic earnings per share | 0.57 | 0.64 | 0.72 | 0.4 | |||||||||||||
Diluted earnings per share | 0.57 | 0.64 | 0.72 | 0.4 | |||||||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||
Feb. 28, 2015 | |||||||||
Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Schedule of assets acquired and liabilities assumed | The excess of the purchase price over the net identifiable assets was recorded as goodwill. The following table summarizes the estimated fair value of the assets acquired and liabilities of Aquilex SRO assumed at the date of acquisition: | ||||||||
($ in thousands) | |||||||||
Current Assets | $ | 78,619 | |||||||
Property and Equipment | 27,669 | ||||||||
Intangible Assets | 87,100 | ||||||||
Goodwill | 109,636 | ||||||||
Other Assets | 205 | ||||||||
Total Assets Acquired | 303,229 | ||||||||
Current Liabilities | (27,527 | ) | |||||||
Net Assets Acquired | $ | 275,702 | |||||||
Schedule of proforma information | The following unaudited pro forma information assumes that the acquisition of Aquilex SRO took place on March 1, 2012 for the income statements for the years ended February 28, 2014, and February 28, 2013. | ||||||||
2014 | 2013 | ||||||||
(Unaudited) (In thousands, except for per share amounts) | |||||||||
Net sales: | $ | 774,818 | $ | 783,126 | |||||
Net Income | $ | 60,080 | $ | 58,372 | |||||
Earnings Per Common Share | |||||||||
Basic Earnings Per Share | $ | 2.35 | $ | 2.31 | |||||
Diluted Earnings Per Share | $ | 2.34 | $ | 2.28 | |||||
Nuclear Logistics Incorporated [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Schedule of assets acquired and liabilities assumed | |||||||||
($ in thousands) | |||||||||
Current Assets | $ | 22,901 | |||||||
Property and Equipment | 1,416 | ||||||||
Intangible Assets | 50,600 | ||||||||
Goodwill | 32,323 | ||||||||
Other Assets | 58 | ||||||||
Total Assets Acquired | 107,298 | ||||||||
Current Liabilities | (17,866 | ) | |||||||
Long Term Liabilities | (12,388 | ) | |||||||
Net Assets Acquired | $ | 77,044 | |||||||
Schedule of proforma information | The following unaudited pro forma information assumes that the acquisition of NLI took place on March 1, 2012 for the income statements for the year ended February 28, 2013. | ||||||||
2013 | |||||||||
(Unaudited) (In thousands, except for per share amounts) | |||||||||
Net sales: | $ | 583,743 | |||||||
Net Income | $ | 60,602 | |||||||
Earnings Per Common Share | |||||||||
Basic Earnings Per Share | $ | 2.39 | |||||||
Diluted Earnings Per Share | $ | 2.37 | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Jun. 02, 2012 | |
operating_segment | ||||
Business Acquisition [Line Items] | ||||
Number of operating segments | 2 | |||
Allowance for doubtful accounts, net | $700,000 | $300,000 | $300,000 | |
Nuclear Logistics Incorporated [Member] | ||||
Business Acquisition [Line Items] | ||||
Future contingent consideration | $9,100,000 | $20,000,000 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | 12 Months Ended |
Feb. 28, 2015 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 25 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 15 years |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Feb. 28, 2015 | |
Minimum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life | 2 years |
Maximum [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful life | 19 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Product Warranty Roll-forward (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Movement in Standard Product Warranty Accrual [Roll Forward] | |||
Balance, beginning balance | $1,338 | $2,073 | $1,670 |
Warranty costs incurred | -1,294 | -2,246 | -2,026 |
Additions charged to income | 2,243 | 1,511 | 2,429 |
Balance, ending balance | $2,287 | $1,338 | $2,073 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Debt (Details) (Senior Notes [Member], USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Jan. 21, 2011 |
Unsecured Senior Notes Due March 31, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Fair value of notes | $164,418,000 | $179,377,000 | |
Debt Instrument, Annual Principal Payment | 14,300,000 | ||
Debt instrument, face amount | 100,000,000 | ||
Unsecured Senior Notes Due January 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, face amount | $125,000,000 |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Hedging Transactions (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Nov. 30, 2011 | Feb. 28, 2015 | Feb. 28, 2014 | Oct. 01, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Loan term | 10 years | |||
Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Proceeds from cash flow hedge | $834,416 | |||
Notional amount of hedge | 75,000,000 | |||
Interest rate reclassified to earnings | $83,442 | $83,442 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Long Term Contingent Consideration (Details) (Nuclear Logistics Incorporated [Member], USD $) | Feb. 28, 2014 | Jun. 02, 2012 |
In Millions, unless otherwise specified | ||
Nuclear Logistics Incorporated [Member] | ||
Business Acquisition, Contingent Consideration [Line Items] | ||
Future contingent consideration | $9.10 | $20 |
Inventories_Details
Inventories (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $62,794 | $64,817 |
Work-in-process | 42,001 | 39,781 |
Finished goods | 2,902 | 2,983 |
Total Inventory | $107,697 | $107,581 |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $28,100,000 | $25,100,000 | $19,400,000 |
Property, Plant and Equipment, Gross | 359,724,000 | 340,039,000 | |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -163,141,000 | -142,400,000 | |
Property, plant, and equipment, net | 196,583,000 | 197,639,000 | 154,476,000 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 16,004,000 | 15,116,000 | |
Building and Building Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 122,539,000 | 117,765,000 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 184,921,000 | 175,955,000 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 21,716,000 | 20,497,000 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | 2,351,000 | 2,429,000 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Gross | $12,193,000 | $8,277,000 |
Costs_and_Estimated_Earnings_O2
Costs and Estimated Earnings On Uncompleted Contracts - Accumulated Costs Net Of Billings (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Contractors [Abstract] | ||
Costs incurred on uncompleted contracts | $126,882 | $158,224 |
Estimated earnings | 50,487 | 65,063 |
Total costs and estimated earnings | 177,369 | 223,287 |
Less billings to date | 148,367 | 199,083 |
Total costs net of billings | $29,002 | $24,204 |
Costs_Net_of_Billings_By_Balan
- Costs Net of Billings By Balance Sheet Location (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Contractors [Abstract] | ||
Cost and estimated earnings in excess of billings on uncompleted contracts | $33,676 | $27,222 |
Billings in excess of costs and estimated earnings on uncompleted contracts | -4,674 | -3,018 |
Total costs net of billings | $29,002 | $24,204 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrued interest | $2,878,031 | $3,414,504 |
Tenant improvements | 745,087 | 983,664 |
Accrued warranty | 2,287,310 | 1,337,717 |
Commissions | 2,539,642 | 1,258,983 |
Personnel expenses | 6,033,578 | 5,578,772 |
Group medical insurance | 1,501,972 | 1,857,940 |
Other | 2,301,565 | 2,723,850 |
Total other accrued liabilities | $18,287,185 | $17,155,430 |
Realignment_Costs_Details
Realignment Costs (Details) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Jun. 01, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve | $456,000 | $3,952,000 | ||
Restructuring Charges | -3,496,000 | |||
Gain (Loss) on Disposition of Assets | -2,651,000 | 0 | 0 | |
Restructuring Charges [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 1,300,000 | |||
Gain (Loss) on Disposition of Assets | $2,700,000 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Postemployment Benefits [Abstract] | |||
Costs recognized for postemployement benefit plan | $10,042,744 | $10,437,080 | $10,492,458 |
Income_Taxes_Provision_of_Inco
Income Taxes - Provision of Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Income (loss) before income taxes: | |||
Domestic | $76,434 | $83,495 | $92,334 |
Foreign | 13,696 | 10,416 | 2,035 |
Income before income taxes | 90,130 | 93,911 | 94,369 |
Current provision: | |||
Federal | 3,770 | 28,901 | 26,330 |
Foreign | 3,025 | 1,903 | -2,600 |
State and Local | 2,575 | 4,382 | 4,136 |
Total current provision for income taxes | 9,370 | 35,186 | 27,866 |
Deferred provision (benefit): | |||
Federal | 15,455 | -2,143 | 2,024 |
Foreign | -858 | 1,230 | 3,455 |
State and Local | 1,220 | 41 | 568 |
Deferred Income Tax Expense (Benefit) | 15,817 | -872 | 6,047 |
Total provision for income taxes | $25,187 | $34,314 | $33,913 |
Income_Taxes_Reconcilliation_o
Income Taxes - Reconcilliation of Effective Income Tax Rate (Details) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Meals and Entertainment, Percent | 0.60% | 1.30% | 0.20% |
State income taxes, net of federal income tax benefit | 2.70% | 3.00% | 3.10% |
Benefit of Section 199 of the Code, manufacturing deduction | 2.40% | 2.20% | 2.60% |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | -3.40% | 0.00% | 0.00% |
Other | -0.50% | 0.00% | 0.00% |
Effective income tax rate | 27.90% | 36.50% | 35.90% |
Effective Income Tax Rate Reconciliation, Tax Credit, Percent | -3.40% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | -0.70% | -0.60% | 0.20% |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
Deferred income tax assets: | ||
Employee related items | $4,690,000 | $4,314,000 |
Inventories | 1,080,000 | 839,000 |
Accrued warranty | 893,000 | 504,000 |
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Allowance for Doubtful Accounts | 565,000 | 2,342,000 |
Net operating loss carry forward | 1,919,000 | 4,268,000 |
Other | 0 | 606,000 |
Total deferred income tax assets | 9,147,000 | 12,873,000 |
Deferred Tax Assets, Valuation Allowance | -1,588,000 | -3,793,000 |
Deferred Tax Assets, Net of Valuation Allowance | 7,559,000 | 9,080,000 |
Deferred income tax liabilities: | ||
Depreciation methods and property basis differences | -28,611,000 | -19,995,000 |
Deferred Tax Liabilities, Goodwill and Intangible Assets | -26,161,000 | -20,719,000 |
Total deferred income tax liabilities | -54,772,000 | -40,714,000 |
Net deferred income tax liabilities | -47,213,000 | -31,634,000 |
Excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries | $17,500,000 |
Income_Taxes_Schedule_of_Net_O
Income Taxes - Schedule of Net Operating Loss Carryforwards (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Assets, Valuation Allowance | $1,588,000 | $3,793,000 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2,200,000 | |
Federal | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, tax impact | 0 | 1,089,000 |
State | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, tax impact | 1,919,000 | 1,919,000 |
Operating loss carryforwards | 31,900,000 | |
Foreign | ||
Operating Loss Carryforwards [Line Items] | ||
Operating loss carryforward, tax impact | 0 | 1,260,000 |
Deferred Tax Asset, Net Operating Loss from Purchase Stock [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 1,000,000 | |
Deferred Tax Asset, Foreign Operations [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $1,200,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $278,556,000 | $171,886,000 |
Acquisitions | 4,113,000 | 109,636,000 |
Foreign Exchange Translation | -3,595,000 | -2,966,000 |
Goodwill, ending balance | 279,074,000 | 278,556,000 |
Galvanizing Services [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 94,731,000 | 96,735,000 |
Acquisitions | 3,306,000 | 0 |
Foreign Exchange Translation | -2,499,000 | -2,004,000 |
Goodwill, ending balance | 95,538,000 | 94,731,000 |
Energy [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 183,825,000 | 75,151,000 |
Acquisitions | 807,000 | 109,636,000 |
Foreign Exchange Translation | -1,096,000 | -962,000 |
Goodwill, ending balance | $183,536,000 | $183,825,000 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Amortizable Intangible Assets (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | $210,556 | $209,732 |
Less accumulated amortization | -56,699 | -39,300 |
Finite-Lived Intangible Assets, Net | 153,857 | 170,432 |
Customer-Related Intangible Assets [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 159,235 | 158,913 |
Noncompete Agreements [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 5,715 | 5,037 |
Trademarks [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 5,042 | 5,110 |
Technology [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 7,400 | 7,400 |
Certification Marks [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 209 | 232 |
Engineering Drawings [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | 24,600 | 24,600 |
Order or Production Backlog [Member] | ||
Amortizable intangible assets | ||
Finite-lived intangible assets, gross | $8,355 | $8,440 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Narrative (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | Feb. 28, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated amortization | $39,300 | $56,699 | ||
Amortization of intangible assets | $18,039 | $18,214 | $9,999 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Schedule of Future Amortization (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2015 | $15,666 | |
2016 | 15,402 | |
2017 | 14,812 | |
2018 | 14,136 | |
2019 | 13,666 | |
Thereafter | 80,175 | |
Finite-Lived Intangible Assets, Net | $153,857 | $170,432 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | ||||||||||
Numerator: | |||||||||||
Net income | $16,283 | $19,965 | $13,769 | $14,925 | $10,242 | $18,445 | $16,363 | $14,547 | $64,943 | $59,597 | $60,456 |
Denominator: | |||||||||||
Denominator for basic earnings per common share-weighted average shares (shares) | 25,675,645 | 25,514,387 | 25,320,147 | ||||||||
Effect of dilutive securities: | |||||||||||
Employee and Director stock awards (shares) | 102,300 | 179,081 | 240,447 | ||||||||
Denominator for diluted earnings per common share (shares) | 25,777,945 | 25,693,468 | 25,560,594 | ||||||||
Earnings per share basic and diluted: | |||||||||||
Basic earnings per common share (usd per share) | $0.63 | $0.78 | $0.54 | $0.58 | $0.40 | $0.72 | $0.64 | $0.57 | $2.53 | $2.34 | $2.39 |
Diluted earnings per common share (usd per share) | $0.63 | $0.77 | $0.53 | $0.58 | $0.40 | $0.72 | $0.64 | $0.57 | $2.52 | $2.32 | $2.37 |
Stock Appreciation Rights (SARs) [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 80,683 | 113,887 | 0 |
Stock_Compensation_Nonvested_R
Stock Compensation - Non-vested Restricted Stock Activity (Details) (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | |
Feb. 28, 2015 | Feb. 28, 2013 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-Vested Balance as of February 29, 2013 (shares) | 70,352 | 109,430 |
Granted (shares) | 48,616 | |
Vested (shares) | -28,647 | |
Forfeited (shares) | -12,875 | |
Non-Vested Balance as of February 28, 2014 (shares) | 77,446 | 109,430 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-Vested Balance as of February 29, 2013, Weight Average Grant Date Fair Value (usd per share) | $34.95 | $20.73 |
Granted, Weighted Average Grant Date Fair Value (usd per share) | $42.89 | |
Vested, Weighted Average Grant Date Fair Value (usd per share) | $28.57 | |
Forfeited, Weighted Average Grant Date Fair Value (usd per share) | $40.87 | |
Non-Vested as of February 28, 2014, Weighted Average Grant Date Fair Value (usd per share) | $41.31 | $20.73 |
Stock_Compensation_SARs_and_Op
Stock Compensation - SARs and Option Awards Activity (Details) (Stock Appreciation Rights SARS and Stock Option [Member], USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Stock Appreciation Rights SARS and Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments, Number of Shares [Roll Forward] | |||
Outstanding at beginning of year (shares) | 396,174 | 439,863 | 573,000 |
Granted (shares) | 126,532 | 116,032 | 118,107 |
Exercised (shares) | -98,942 | -159,721 | -251,240 |
Forfeited (shares) | -46,782 | 0 | -4 |
Outstanding at end of year (shares) | 376,982 | 396,174 | 439,863 |
Exercisable at end of year (shares) | 204,107 | 153,343 | 115,395 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning of year, Weighted Average Exercise Price (usd per share) | $26.64 | $19.12 | $15.46 |
Granted, Weighted Average Exercise Price (usd per share) | $43.92 | $45.20 | $25.77 |
Exercised, Weighted Average Exercise Price (usd per share) | $22.79 | $19.19 | $13.84 |
Forfeited, Weighted Average Exercise Price (usd per share) | $44.14 | $0 | $2.11 |
Outstanding at end of year, Weighted Average Exercise Price (usd per share) | $31.27 | $26.64 | $19.12 |
Exercisable at end of year, Weighted Average Exercise Price (usd per share) | $21.55 | $15.32 | $13.14 |
Weighted average fair value for the fiscal year indicated of options and SARs granted during such year (usd per share) | $16.94 | $13.68 | $8.81 |
Stock_Compensation_Schedule_By
Stock Compensation - Schedule By Exercise Price Range (Details) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Options/ SAR’s (shares) | 376,982 | 396,174 | 439,863 | 573,000 |
Weighted Average Exercise Price, Outstanding (usd per share) | $31.27 | $26.64 | $19.12 | $15.46 |
Options / SAR’s Currently Exercisable (shares) | 204,107 | 153,343 | 115,395 | |
Weighted Average Exercise Price, Exercisable (usd per share) | $21.55 | $15.32 | $13.14 | |
$9.06 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $9.06 | |||
Total Options/ SAR’s (shares) | 48,510 | |||
Average Remaining Life | 1 year | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $9.06 | |||
Options / SAR’s Currently Exercisable (shares) | 48,510 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $9.06 | |||
$15.84 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $15.84 | |||
Total Options/ SAR’s (shares) | 54,546 | |||
Average Remaining Life | 2 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $15.84 | |||
Options / SAR’s Currently Exercisable (shares) | 54,546 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $15.84 | |||
$20.91 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $20.91 | |||
Total Options/ SAR’s (shares) | 40,950 | |||
Average Remaining Life | 3 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $20.91 | |||
Options / SAR’s Currently Exercisable (shares) | 40,950 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $20.91 | |||
$25.67 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $25.67 | |||
Total Options/ SAR’s (shares) | 38,932 | |||
Average Remaining Life | 4 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $25.67 | |||
Options / SAR’s Currently Exercisable (shares) | 24,082 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $25.67 | |||
$45.36 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $39.65 | |||
Total Options/ SAR’s (shares) | 950 | |||
Average Remaining Life | 5 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $39.65 | |||
Options / SAR’s Currently Exercisable (shares) | 0 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $39.65 | |||
$45.26 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $43.92 | |||
Total Options/ SAR’s (shares) | 112,411 | |||
Average Remaining Life | 6 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $43.92 | |||
Options / SAR’s Currently Exercisable (shares) | 8,089 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $43.92 | |||
$42.08 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $45.26 | |||
Total Options/ SAR’s (shares) | 40,000 | |||
Average Remaining Life | 6 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $45.26 | |||
Options / SAR’s Currently Exercisable (shares) | 10,000 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $45.26 | |||
$46.43 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $45.36 | |||
Total Options/ SAR’s (shares) | 39,924 | |||
Average Remaining Life | 5 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $45.36 | |||
Options / SAR’s Currently Exercisable (shares) | 17,677 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $45.36 | |||
$39.65 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of Exercise Prices (usd per share) | $46.43 | |||
Total Options/ SAR’s (shares) | 759 | |||
Average Remaining Life | 5 years | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $46.43 | |||
Options / SAR’s Currently Exercisable (shares) | 253 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $46.43 | |||
$9.06 - $45.36 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise price range, lower limit (usd per share) | $9.06 | |||
Exercise price range, upper limit (usd per share) | $46.43 | |||
$9.06 - $45.36 [Member] | Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total Options/ SAR’s (shares) | 376,982 | |||
Average Remaining Life | 4 years 1 month 18 days | |||
Weighted Average Exercise Price, Outstanding (usd per share) | $31.27 | |||
Options / SAR’s Currently Exercisable (shares) | 204,107 | |||
Weighted Average Exercise Price, Exercisable (usd per share) | $21.55 |
Stock_Compensation_Fair_Value_
Stock Compensation - Fair Value Assumptions (Details) (Employee Stock Purchase Plan [Member], Stock Appreciation Rights (SARs) [Member]) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected price volatilty (minimum) | 35.39% | 36.34% | 45.00% |
Expected price volatility (maximum) | 40.00% | 53.00% | 47.83% |
Risk-free interest rate (minimum) | 2.32% | 75.00% | 59.00% |
Risk-free interest rate (maximum) | 2.73% | 2.98% | 89.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life in years | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Expected dividend yield | 1.20% | 1.21% | 1.76% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life in years | 4 years 6 months | 4 years 6 months | 4 years 6 months |
Expected dividend yield | 1.32% | 1.49% | 1.95% |
Stock_Compensation_Sharebased_
Stock Compensation - Share-based Compensation and Income Taxes (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Share based compensation expense and related income tax benefits | |||
Compensation Expense | $4,080,203 | $3,703,407 | $3,175,051 |
Income tax benefits | $1,428,071 | $1,296,193 | $1,111,268 |
Stock_Compensation_Details_Tex
Stock Compensation (Details Textual) (USD $) | 12 Months Ended | |||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 | |
Share Based Compensation (Textual) [Abstract] | ||||
Number of share-based compensation plans | 1 | |||
Shares authorized (shares) | 1,500,000 | |||
Share for future issuance (shares) | 1,473,148 | |||
Total intrinsic value of options exercised | $4,500,000 | |||
Unrecognized compensation cost | 4,115,200 | |||
Unrecongized compensation cost, amortization period | 2 years 7 months 28 days | |||
Proceeds from Stock Options Exercised | 0 | 0 | 16,000 | |
Tax benefits from stock options exercised | 259,000 | 1,602,000 | 1,283,000 | |
Employee Stock Purchase Plan [Member] | ||||
Share Based Compensation (Textual) [Abstract] | ||||
Granted option lower than | 85.00% | |||
Restricted common stock under plan | 25,000 | |||
Common stock purchased during period (shares) | 5,000 | |||
Directors Grants [Member] | ||||
Share Based Compensation (Textual) [Abstract] | ||||
Shares of company common stock (shares) | 2,000 | 1,000 | 1,000 | |
Value of common stock grants (usd per share) | $44.90 | $36.70 | $32.51 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share Based Compensation (Textual) [Abstract] | ||||
Vesting ratably term | 3 years | |||
Total fair value of vested shares | 818,519 | 1,900,000 | 500,000 | |
Non-vested shares outstanding (shares) | 77,446 | 70,352 | 109,430 | |
Non-vested shares outstanding, weighted average grant date fair value (usd per share) | $41.31 | $34.95 | $20.73 | |
Stock Appreciation Rights SARS and Stock Option [Member] | ||||
Share Based Compensation (Textual) [Abstract] | ||||
Vesting ratably term | 3 years | |||
Term for the contract | 7 years | |||
Outstanding average contractual term | 4 years 1 month 18 days | |||
Outstanding aggregate intrinsic value | 17,100,000 | |||
Average remaining contractual term | 2 years 9 months 25 days | |||
Aggregate remaining intrinsic value | $9,300,000 |
Longterm_Debt_Schedule_of_Long
Long-term Debt - Schedule of Long-term Debt (Details) (USD $) | 12 Months Ended | |
Feb. 28, 2014 | Feb. 28, 2015 | |
Debt Instrument [Line Items] | ||
Total | $405,616,000 | $337,848,000 |
Less amount due within one year | -20,848,000 | -21,866,000 |
Long-term debt, exculding current maturities | 384,768,000 | 315,982,000 |
Senior Notes [Member] | Unsecured Senior Notes Due January 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 125,000,000 | 125,000,000 |
Senior Notes [Member] | Unsecured Senior Notes Due March 2012 through March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total | 71,428,000 | 57,143,000 |
Annual installments | 14,285,714 | |
Line of Credit [Member] | Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Total | 137,000,000 | 90,080,000 |
Term Note [Member] | Term Not Due in Quarterly Installments Beginning in June 2013 through March 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total | $72,188,000 | $65,625,000 |
Longterm_Debt_Narrative_Detail
Long-term Debt - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||
Feb. 28, 2014 | Mar. 27, 2013 | Feb. 28, 2015 | Mar. 31, 2008 | Jan. 21, 2011 | Feb. 28, 2013 | |
Senior Notes [Member] | Unsecured Senior Notes Due March 2012 through March 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Covenant, net worth minimum | $116,900,000 | |||||
Covenant, minimum retention of future income | 50.00% | |||||
Covenant, minimum fixed charge coverage ratio | 2 | |||||
Debt instrument, face amount | 100,000,000 | |||||
Debt instrument, stated percentage | 6.24% | |||||
Covenant, minimum ratio of indebtedness to EBIDTA | 3.25 | |||||
Covenant, maximum percentage of priority indebtedness | 10.00% | |||||
Senior Notes [Member] | Unsecured Senior Notes Due January 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Covenant, net worth minimum | 116,900,000 | |||||
Covenant, minimum retention of future income | 50.00% | |||||
Covenant, minimum fixed charge coverage ratio | 2 | |||||
Debt instrument, face amount | 125,000,000 | |||||
Debt instrument, stated percentage | 5.42% | |||||
Covenant, minimum ratio of indebtedness to EBIDTA | 3.25 | |||||
Covenant, maximum percentage of priority indebtedness | 10.00% | |||||
Revolving Credit Facility [Member] | Bank of America [Member] | Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Covenant, net worth minimum | 230,000,000 | |||||
Covenant, minimum retention of future income | 50.00% | |||||
Covenant, maximum leverage ratio | 3.25 | |||||
Covenant, minimum fixed charge coverage ratio | 1.75 | |||||
Covenant, maximum capital expenditures | 60,000,000 | |||||
Capital expenditure covenant | 50,000,000 | |||||
Amount outstanding on line of credit | 90,080,000 | 0 | ||||
Letters of credit outstanding | 13,000,000 | |||||
Remaining borrowing capacity on line of credit | 122,000,000 | |||||
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 225,000,000 | |||||
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Variable rate description | Eurodollar | |||||
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Eurodollar [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 1.00% | |||||
Commitment fees | 0.20% | |||||
Revolving Credit Facility [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | Eurodollar [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread | 2.00% | |||||
Commitment fees | 0.30% | |||||
Line of Credit [Member] | Bank Of America And Other Lenders [Member] | Line of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 75,000,000 | |||||
Accordion feature | $75,000,000 |
Longterm_Debt_Schedule_of_Long1
Long-term Debt - Schedule of Long-term Debt Maturities (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
2015 | $21,866 | |
2016 | 23,192 | |
2017 | 16,629 | |
2018 | 151,161 | |
2019 | 0 | |
Thereafter | 125,000 | |
Total | $337,848 | $405,616 |
Operating_segments_Narrative_D
Operating segments - Narrative (Details) | 12 Months Ended |
Feb. 28, 2015 | |
operating_segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Operating_segments_Details
Operating segments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Operations and assets by segment | |||||||||||
Net sales | $182,312,000 | $224,833,000 | $193,416,000 | $216,126,000 | $181,011,000 | $197,755,000 | $189,782,000 | $183,175,000 | $816,687,000 | $751,723,000 | $570,594,000 |
Segment Operating income | 106,825,000 | 100,114,000 | 97,984,000 | ||||||||
Gain (Loss) on Disposition of Property Plant Equipment | -2,525,000 | -8,039,000 | -8,303,000 | ||||||||
Other Nonoperating Income (Expense) | -2,659,000 | 4,165,000 | 1,155,000 | ||||||||
Interest expense | 16,561,000 | 18,407,000 | 13,073,000 | ||||||||
Total Operating Income | 90,130,000 | 93,911,000 | 94,369,000 | ||||||||
Depreciation and amortization | 46,089,000 | 43,305,000 | 29,363,000 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment | 40,895,000 | 319,174,000 | 161,981,000 | ||||||||
Assets | 936,914,000 | 953,253,000 | 936,914,000 | 953,253,000 | 694,205,000 | ||||||
Goodwill | 279,074,000 | 278,556,000 | 279,074,000 | 278,556,000 | 171,886,000 | ||||||
Property, Plant and Equipment, Net | 196,583,000 | 197,639,000 | 196,583,000 | 197,639,000 | 154,476,000 | ||||||
Galvanizing Services [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Net sales | 358,348,000 | 335,617,000 | 337,039,000 | ||||||||
Segment Operating income | 88,562,000 | 87,808,000 | 88,505,000 | ||||||||
Depreciation and amortization | 23,964,000 | 22,008,000 | 19,501,000 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment | 26,928,000 | 33,282,000 | 81,604,000 | ||||||||
Assets | 378,823,000 | 378,358,000 | 378,823,000 | 378,358,000 | 370,142,000 | ||||||
Goodwill | 95,538,000 | 94,731,000 | 95,538,000 | 94,731,000 | 96,735,000 | ||||||
Corporate, Non-Segment [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Segment Operating income | -20,440,000 | -32,207,000 | -22,594,000 | ||||||||
Corporate [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Depreciation and amortization | 1,400,000 | 1,338,000 | 1,275,000 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment | 3,320,000 | 1,378,000 | 864,000 | ||||||||
Assets | 34,844,000 | 32,086,000 | 34,844,000 | 32,086,000 | 62,989,000 | ||||||
Energy [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Net sales | 458,339,000 | 416,106,000 | 233,555,000 | ||||||||
Segment Operating income | 38,703,000 | 44,513,000 | 32,073,000 | ||||||||
Depreciation and amortization | 20,725,000 | 19,959,000 | 8,587,000 | ||||||||
Expenditures for acquisitions, net of cash, and property, plant and equipment | 10,647,000 | 284,514,000 | 79,513,000 | ||||||||
Assets | 523,247,000 | 542,809,000 | 523,247,000 | 542,809,000 | 261,074,000 | ||||||
Goodwill | 183,536,000 | 183,825,000 | 183,536,000 | 183,825,000 | 75,151,000 | ||||||
UNITED STATES | |||||||||||
Operations and assets by segment | |||||||||||
Net sales | 631,544,000 | 601,674,000 | 503,699,000 | ||||||||
Property, Plant and Equipment, Net | 173,712,000 | 171,727,000 | 173,712,000 | 171,727,000 | 127,410,000 | ||||||
International [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Net sales | 189,855,000 | 150,049,000 | 66,895,000 | ||||||||
Geography Eliminations [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Net sales | -4,712,000 | 0 | 0 | ||||||||
CANADA | |||||||||||
Operations and assets by segment | |||||||||||
Property, Plant and Equipment, Net | 20,289,000 | 23,779,000 | 20,289,000 | 23,779,000 | 27,066,000 | ||||||
Other Countries [Member] | |||||||||||
Operations and assets by segment | |||||||||||
Property, Plant and Equipment, Net | $2,582,000 | $2,133,000 | $2,582,000 | $2,133,000 | $0 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum operating lease term | 1 year | ||
Rent expense | $14,071,000 | $11,047,000 | $7,808,459 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Schedule Of Future Operating Lease Expenses (Details) (USD $) | Feb. 28, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $6,955 |
2016 | 6,415 |
2017 | 4,561 |
2018 | 3,257 |
2019 | 1,204 |
Thereafter | 2,758 |
Total | $25,150 |
Commitments_and_Contingencies_4
Commitments and Contingencies - Product Warranty Accrual (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Feb. 29, 2012 |
Loss Contingencies [Line Items] | ||||
Reserve for warranty | $2,287,000 | $1,338,000 | $2,073,000 | $1,670,000 |
Accrued warranty | 2,287,310 | 1,337,717 | ||
Energy [Member] | ||||
Loss Contingencies [Line Items] | ||||
Letters of credit outstanding | $13,000,000 |
Quarterly_Financial_Informatio2
Quarterly Financial Information, Unaudited (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Nov. 30, 2014 | Aug. 31, 2014 | 31-May-14 | Feb. 28, 2014 | Nov. 30, 2013 | Aug. 31, 2013 | 31-May-13 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $182,312 | $224,833 | $193,416 | $216,126 | $181,011 | $197,755 | $189,782 | $183,175 | $816,687 | $751,723 | $570,594 |
Gross profit | 47,432 | 60,775 | 42,100 | 55,389 | 45,724 | 53,361 | 55,905 | 50,715 | 205,696 | 205,705 | 164,173 |
Net income | $16,283 | $19,965 | $13,769 | $14,925 | $10,242 | $18,445 | $16,363 | $14,547 | $64,943 | $59,597 | $60,456 |
Basic earnings per common share (usd per share) | $0.63 | $0.78 | $0.54 | $0.58 | $0.40 | $0.72 | $0.64 | $0.57 | $2.53 | $2.34 | $2.39 |
Diluted earnings per common share (usd per share) | $0.63 | $0.77 | $0.53 | $0.58 | $0.40 | $0.72 | $0.64 | $0.57 | $2.52 | $2.32 | $2.37 |
Acquisitions_Pro_Forma_Informa
Acquisitions - Pro Forma Information (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Feb. 28, 2014 | Feb. 28, 2013 |
Nuclear Logistics Incorporated [Member] | ||
Summary of acquisitions | ||
Net Sales | $583,743 | |
Net Income | 60,602 | |
Earnings Per Common Share | ||
Basic Earnings Per Share (usd per share) | $2.39 | |
Diluted Earnings Per Share (usd per share) | $2.37 | |
Aquilex [Member] | ||
Summary of acquisitions | ||
Net Sales | 774,818 | 783,126 |
Net Income | $60,080 | $58,372 |
Earnings Per Common Share | ||
Basic Earnings Per Share (usd per share) | $2.35 | $2.31 |
Diluted Earnings Per Share (usd per share) | $2.34 | $2.28 |
Acquisitions_Purchase_Price_Al
Acquisitions - Purchase Price Allocation (Details) (USD $) | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Jun. 02, 2012 |
Purchase Price Allocation | ||||
Goodwill | $279,074,000 | $278,556,000 | $171,886,000 | |
Aquilex [Member] | ||||
Purchase Price Allocation | ||||
Current Assets | 78,619,000 | |||
Property and Equipment | 27,669,000 | |||
Intangible Assets | 87,100,000 | |||
Goodwill | 109,636,000 | |||
Other Assets | 205,000 | |||
Total Assets Acquired | 303,229,000 | |||
Current Liabilities | -27,527,000 | |||
Net Assets Acquired | 275,702,000 | |||
Nuclear Logistics Incorporated [Member] | ||||
Purchase Price Allocation | ||||
Current Assets | 22,901,000 | |||
Property and Equipment | 1,416,000 | |||
Intangible Assets | 50,600,000 | |||
Goodwill | 32,323,000 | |||
Other Assets | 58,000 | |||
Total Assets Acquired | 107,298,000 | |||
Current Liabilities | -17,866,000 | |||
Long Term Liabilities | -12,388,000 | |||
Net Assets Acquired | $77,044,000 |
Acquisitions_Details_Textual
Acquisitions (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | |||||||
Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 | Jun. 30, 2014 | Mar. 29, 2013 | Jun. 01, 2012 | Oct. 01, 2012 | Jun. 02, 2012 | Jan. 02, 2013 | |
Business Acquisition [Line Items] | |||||||||
Liabilities assumed | $300,000 | ||||||||
Goodwill | 279,074,000 | 278,556,000 | 171,886,000 | ||||||
Purchase price of acquisition, net of cash | 11,518,000 | 275,702,000 | 137,058,000 | ||||||
Zalk Steel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Goodwill | 3,300,000 | ||||||||
Purchase price of acquisition | 10,500,000 | ||||||||
Intangible assets acquired | 3,400,000 | ||||||||
Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Assets acquired | 303,229,000 | ||||||||
Goodwill | 109,636,000 | ||||||||
Acquisition related costs | 5,400,000 | ||||||||
Additional payment on performance | 3,900,000 | ||||||||
Purchase price of acquisition | 275,700,000 | ||||||||
Business Acquisition Amount of Payment Due at Close under Purchase Agreement | 271,800,000 | ||||||||
Intangible assets acquired | 87,100,000 | ||||||||
G3 Galvananizing Limited [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Assets acquired | 12,000,000 | ||||||||
Liabilities assumed | 3,100,000 | ||||||||
Goodwill | 4,200,000 | ||||||||
Acquisition related costs | 500,000 | ||||||||
Nuclear Logistics Incorporated [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Future contingent consideration | 9,100,000 | 20,000,000 | |||||||
Assets acquired | 107,298,000 | ||||||||
Goodwill | 32,323,000 | ||||||||
Acquisition related costs | 900,000 | ||||||||
Certain liabilities payoff | 3,800,000 | ||||||||
Purchase price of acquisition | 77,000,000 | ||||||||
Intangible assets acquired | 50,600,000 | ||||||||
Galvcast Manufacturing Inc [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Assets acquired | 48,000,000 | ||||||||
Liabilities assumed | 900,000 | ||||||||
Goodwill | 15,700,000 | ||||||||
Acquisition related costs | $300,000 | ||||||||
Goodwill, deductible | 75.00% | ||||||||
Customer Relationships [Member] | Zalk Steel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 19 years | ||||||||
Customer Related Intangibles [Member] | Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 14 years | ||||||||
Trade Names [Member] | Zalk Steel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 19 years | ||||||||
Trade Names [Member] | Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 19 years | ||||||||
Noncompete Agreements [Member] | Zalk Steel [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 5 years | ||||||||
Minimum [Member] | Technology [Member] | Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 3 years | ||||||||
Maximum [Member] | Technology [Member] | Aquilex [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Weighted average useful life | 9 years |
Schedule_II_Valuation_and_Qual1
Schedule II : Valuation and Qualiying Accounts and Reserves (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2013 |
Allowance for Doubtful Accounts [Member] | |||
Allowance for Doubtful Accounts | |||
Balance at Beginning of year | $1,744 | $1,000 | $898 |
Valuation Allowances and Reserves, Adjustments | 458 | -116 | 446 |
Valuation Allowances and Reserves, Deductions | -700 | -294 | -344 |
Effect of exchange rate | -30 | -30 | 0 |
Balance at end of year | 1,472 | 1,744 | 1,000 |
Valuation Allowances and Reserves, Adjustments | $0 | $1,184 | $0 |