AZZ (AZZ) 10-Q 1 Jul 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - May. 31, 2015 - shares	Total
Document and Entity Information [Abstract]
Entity Registrant Name	AZZ INC
Entity Central Index Key	8,947
Document Type	10-Q
Document Period End Date	May 31, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--02-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	25,770,861

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	May. 31, 2015	Feb. 28, 2015
Current Assets:
Cash and Cash Equivalents	$ 45,764	$ 22,527
Accounts receivable (net of allowance for doubtful accounts of $1,568 as of May 31, 2015 and $1,472 as of February 28, 2015)	130,040	125,638
Inventories:
Raw Material	66,626	62,794
Work-In-Process	42,770	42,001
Finished Goods	4,485	2,902
Costs and Estimated Earnings In Excess of Billings On Uncompleted Contracts	55,329	33,676
Deferred Income Taxes	3,499	4,526
Prepaid Expenses and Other	9,421	4,570
Total Current Assets	357,934	298,634
Property, Plant and Equipment, Net	195,830	196,583
Goodwill	279,095	279,074
Intangibles and Other Assets, Net	158,301	162,623
Total Assets	991,160	936,914
Current Liabilities:
Accounts Payable	52,173	49,580
Income Tax Payables	6,727	2,888
Accrued Salaries and Wages	17,976	17,046
Other Accrued Liabilities	20,334	18,287
Customer Advance Payment	29,718	28,401
Profit sharing	6,550	6,400
Long Term Debt Due Within One Year	22,270	21,866
Billings In Excess of Costs and Estimated Earnings On Uncompleted Contracts	5,891	4,674
Total Current Liabilities	161,639	149,142
Long-Term Debt Due After One Year	344,821	315,982
Deferred Income Taxes	47,443	51,738
Liabilities	553,903	516,862
Shareholders' Equity:
Common stock, $1 Par Value, Shares Authorized 100,000 (25,771 Shares at May 31, 2015 and 25,732 Shares at February 28, 2015)	25,771	25,732
Capital In Excess of Par Value	29,190	27,706
Retained Earnings	405,505	389,446
Accumulated Other Comprehensive Income	(23,209)	(22,832)
Total Shareholders' Equity	437,257	420,052
Total Liabilities and Shareholders' Equity	$ 991,160	$ 936,914

Condensed consolidated Balance3

Condensed consolidated Balance Sheets (Parenthetical) - USD ($)	May. 31, 2015	Feb. 28, 2015
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Doubtful Accounts	$ 1,568,317	$ 1,471,986
Common Stock, Par Value (usd per share)	$ 1	$ 1
Common Stock, Shares Authorized (shares)	100,000,000	100,000,000
Common Stock, Shares Issued (shares)	25,770,861	25,732,331

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Income Statement [Abstract]
Net Sales	$ 228,888	$ 216,126
Costs and Expenses
Cost of Sales	169,584	160,738
Gross Profit	59,304	55,388
Selling, General and Administrative	26,419	27,541
Operating Income (Loss)	32,885	27,847
Interest Expense	3,847	4,209
Gain (Loss) on Disposition of Property Plant Equipment	424	27
Other Expense (Income) - net	307	(31)
Income Before Income Taxes	29,155	23,696
Income Tax Expense	9,231	8,771
Net Income	$ 19,924	$ 14,925
Earnings Per Common Share
Basic Earnings Per Share (usd per share)	$ 0.77	$ 0.58
Diluted Earnings Per Share (usd per share)	$ 0.77	$ 0.58

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Statement of Comprehensive Income [Abstract]
Net Income	$ 19,924	$ 14,925
Other Comprehensive Income (Loss):
Unrealized Translation Gains (Losses)	(363)	3,007
Interest rate swap, net of income tax of $7 and $7, respectively.	(14)	(14)
Other Comprehensive Income (Loss)	(377)	2,993
Comprehensive Income	$ 19,547	$ 17,918

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Statement of Comprehensive Income [Abstract]
Interest rate swap, income tax	$ 7	$ 7

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Cash Flows From Operating Activities:
Net Income	$ 19,924	$ 14,925
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:
Provision For Doubtful Accounts	101	(197)
Amortization and Depreciation	11,063	11,538
Deferred Income Tax Expense	(3,270)	(462)
Net Loss (Gain) On Insurance Settlement or On Sale of Property, Plant & Equipment	(424)	(27)
Amortization of Deferred Borrowing Costs	343	366
Share Based Compensation Expense	771	1,139
Effects of Changes In Assets & Liabilities:
Accounts Receivable	(4,230)	(14,591)
Inventories	(6,258)	(6,551)
Prepaid Expenses and Other	(5,013)	(2,688)
Other Assets	73	78
Net Change In Billings Related To Costs and Estimated Earnings On Uncompleted Contracts	(20,534)	(3,838)
Accounts Payable	2,957	13,938
Other Accrued Liabilities and Income Taxes Payable	9,219	(1,536)
Net Cash Provided By Operating Activities	4,722	12,094
Cash Flows Used For Investing Activities:
Proceeds From Sale Or Insurance Settlement of Property, Plant, and Equipment	262	34
Purchase of Property, Plant and Equipment	(6,470)	(5,854)
Net Cash From Investing Activities	(6,208)	(5,820)
Cash Flows From Financing Activities:
Excess Tax Benefits From Stock Options and Stock Appreciation Rights	(138)	366
Proceeds from revolving loan	59,481	10,000
Payments on revolving loan	(14,080)	0
Payments on Long Term Debt	(16,161)	(15,223)
Payments of Dividends	(3,865)	(3,590)
Net Cash Used In Financing Activities	25,237	(8,447)
Effect of Exchange Rate Changes on Cash	(514)	256
Net Increase (Decrease) In Cash & Cash Equivalents	23,237	(1,917)
Cash & Cash Equivalents At Beginning of Period	22,527	27,565
Cash & Cash Equivalents At End of Period	45,764	25,648
Supplemental Disclosures
Cash Paid For Interest	2,859	3,498
Cash Paid For Income Taxes	$ 3,583	$ 6,486

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - 3 months ended May. 31, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Feb. 28, 2015	$ 420,052	$ 25,732	$ 27,706	$ 389,446	$ (22,832)
Balance (shares) at Feb. 28, 2015		25,732
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Compensation (shares)		0
Stock Compensation	771	$ 0	771
Restricted Stock Units (shares)		2
Restricted Stock Units	(38)	$ 2	(40)
Stock Issued for Stock Appreciation Rights Shares		7
Stock Issued For Stock Appreciation Rights	(158)	$ 7	(165)
Employee Stock Purchase Plan (shares)		30
Employee Stock Purchase Plan	1,086	$ 30	1,056
Federal Income Tax Deducted on Stock Options and SARs	(138)		(138)
Cash Dividend Paid	(3,865)			(3,865)
Net Income	19,924			19,924
Foreign Currency Translation	(363)				(363)
Interest rate swap, net of $7 income tax	(14)				(14)
Balance at May. 31, 2015	$ 437,257	$ 25,771	$ 29,190	$ 405,505	$ (23,209)
Balance (shares) at May. 31, 2015		25,771

Consolidated Statement of Shar9

Consolidated Statement of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Statement of Stockholders' Equity [Abstract]
Interest rate swap, income tax	$ 7	$ 7

Basis of Presentation

Basis of Presentation	3 Months Ended
	May. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The Company and Basis of Presentation AZZ incorporated (“AZZ”, the “Company”, "our" or “we”) was established in 1956 and incorporated under the laws of the State of Texas. We are a global provider of galvanizing services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. We operate in two segments; Energy and Galvanizing Services. AZZ Galvanizing Services is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. AZZ Energy is dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in the energy markets worldwide. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2015, which was derived from audited financial statements, and the unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete consolidated financial statements. These financial statements should be read in conjunction with the audited financial statements and related notes for the fiscal year ended February 28, 2015 , included in the Company’s Annual Report on Form 10-K covering such period. Our fiscal year ends on the last day of February and is identified as the fiscal year for the calendar year in which it ends. For example, the fiscal year ended February 28, 2015 is referred to as fiscal 2015 . In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position of the Company as of May 31, 2015 , the results of its operations for the three months ended May 31, 2015 and 2014 , and cash flows for the three months ended May 31, 2015 and 2014 . These interim results are not necessarily indicative of results for a full year. New Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers", issued as a new Topic, Accounting Standards Codification (ASC) Topic 606 ("ASU 2014-09"). The new revenue recognition standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The premise of the guidance is that a Company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 can be adopted by the Company either retrospectively or as a cumulative-effect adjustment as of the date of adoption. On April 1, 2015, the FASB decided to defer the effective date of the new revenue standard by one year. As a result, public entities would apply the new revenue standard to annual reporting periods beginning after December 15, 2017. This standard will be effective for the Company beginning in fiscal 2019. The Company is currently evaluating the new guidance and has not determined the impact this standard may have on its financial statements or decided upon the method of adoption.

Earnings Per Share

Earnings Per Share	3 Months Ended
	May. 31, 2015
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Earnings per share is based on the weighted average number of shares outstanding during each period, adjusted for the dilutive effect of stock awards. The following table sets forth the computation of basic and diluted earnings per share: Three Months ended May 31, 2015 2014 (Unaudited) (In thousands except per share data) Numerator: Net income for basic and diluted earnings per common share $ 19,924 $ 14,925 Denominator: Denominator for basic earnings per common share–weighted average shares 25,756 25,623 Effect of dilutive securities: Employee and Director stock awards 106 116 Denominator for diluted earnings per common share 25,862 25,739 Earnings per share basic and diluted: Basic earnings per common share $ 0.77 $ 0.58 Diluted earnings per common share $ 0.77 $ 0.58

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	May. 31, 2015
Share-based Compensation [Abstract]
Stock-based Compensation	-based Compensation The Company has one share-based compensation plan, the 2014 Long Term Incentive Plan (the “Plan”) under which share-based compensation may currently be granted. 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, performance share units, and stock appreciation rights. The maximum number of shares that may be issued under the Plan is 1,500,000 shares. As of May 31, 2015 the Company has approximately 1,397,482 shares available for future issuance under the Plan. In addition, certain share-based awards are outstanding under the Company's Amended and Restated 2005 Long Term Incentive Plan, which was replaced by 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. The activity of our non-vested restricted stock unit awards for the three months ended May 31, 2015 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-Vested Balance as of February 28, 2015 77,446 $ 41.31 Granted 47,113 46.65 Vested (10,134 ) 25.67 Forfeited (2,137 ) 44.15 Non-Vested Balance as of May 31, 2015 112,288 $ 45.26 Performance Share Unit Awards Performance share unit awards are valued at the market price of our common stock on the grant date. These awards have a three year performance cycle and will vest and become payable, if at all, on the third anniversary of the award date. The awards are subject to the Company’s degree of achievement of a target annual average adjusted return on assets during these three year periods. In addition, a multiplier may be applied to the total awards granted which is based on the Company’s total shareholder return during such three year period in comparison to a defined industry peer group as set forth in the agreement. For the three months ended May 31, 2015 , the Company issued 28,553 performance share unit awards with a weighted average grant date fair value of $46.65 . Stock Appreciation Rights Stock appreciation rights 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 three 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 activity for the three months ended May 31, 2015 is as follows: SAR’s Weighted Average Exercise Price Outstanding as of February 28, 2015 376,982 $ 31.27 Granted — — Exercised (5,128 ) 23.69 Forfeited (4,078 ) 44.42 Outstanding as of May 31, 2015 367,776 $ 31.23 Exercisable as of May 31, 2015 258,856 $ 25.69 The average remaining contractual term for those stock appreciation rights outstanding at May 31, 2015 is 3.85 years, with an aggregate intrinsic value of $17.6 million . The average remaining contractual terms for those stock appreciation rights that are exercisable as of May 31, 2015 is 3.12 years, with an aggregate intrinsic value of $12.4 million . 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. The fair value of the estimated number of shares to be issued under each offering is determined using the Black-Scholes option pricing model. For the three months ended May 31, 2015 , the Company issued 29,995 shares under the Employee Stock Purchase Plan. Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows: Period ended May 31, 2015 2014 (In thousands) Compensation Expense $ 771 $ 1,139 Income tax benefits $ 270 $ 399 Unrecognized compensation cost related to restricted stock units, performance share unit awards, stock appreciation rights, and the employee stock purchase plan at May 31, 2015 totals $7.1 million . The Company’s policy is to issue shares required under these plans from the Company’s authorized but unissued shares and treasury shares.

Segments

Segments	3 Months Ended
	May. 31, 2015
Segment Reporting [Abstract]
Segments	Segments We have two operating segments, Energy and Galvanizing Services, as defined in our Annual Report on Form 10-K for the year ended February 28, 2015 . Information regarding operations and assets by segment is as follows: Three Months Ended May 31, 2015 2014 (Unaudited) Net Sales: Energy $ 137,003 $ 130,521 Galvanizing Services 91,885 85,605 Total net sales 228,888 216,126 Operating Income: Energy 17,956 13,657 Galvanizing Services 22,094 22,010 Corporate (7,165 ) (7,820 ) Total operating income 32,885 27,847 Interest expense 3,847 4,209 Net gain on sale of property, plant and equipment and insurance proceeds (424 ) (27 ) Other (income) expense, net 307 (31 ) Income before income taxes $ 29,155 $ 23,696 Total Assets: Energy $ 556,308 $ 559,341 Galvanizing Services 374,905 383,612 Corporate 59,947 40,586 $ 991,160 $ 983,539 Financial Information About Geographical Areas Below is a breakdown of selected financial information by geographical area: Three Months Ended May 31, 2015 2014 (Unaudited) Net Sales: U.S. $ 182,270 $ 176,439 International 46,618 39,687 Total Net Sales $ 228,888 $ 216,126 May 31, 2015 February 28, 2015 Property, Plant and Equipment, Net: U.S. 173,562 173,712 Canada 19,931 20,289 Other Countries 2,337 2,582 Total Property, Plant and Equipment, Net $ 195,830 $ 196,583

Warranty Reserves

Warranty Reserves	3 Months Ended
	May. 31, 2015
Product Warranties Disclosures [Abstract]
Warranty Reserves	Warranty Reserves A reserve has been established to provide for the estimated future cost of warranties on a portion of the Company’s delivered products and is classified within accrued liabilities on the consolidated balance sheet. Management periodically reviews the reserves and makes adjustments accordingly. Warranties cover such factors as non-conformance to specifications and defects in material and workmanship. The following table shows changes in the warranty reserves since the end of fiscal 2015: Warranty Reserve (unaudited) (in thousands) Balance at February 28, 2015 $ 2,287 Warranty costs incurred (439 ) Additions charged to income 844 Balance at May 31, 2015 $ 2,692

Realignment Costs (Notes)

Realignment Costs (Notes)	3 Months Ended
	May. 31, 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 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 totaling $1.3 million were included in Selling, General and Administrative Expense for the year ending February 28, 2015. The loss recognized from the disposition of certain fixed assets totaling $2.7 million was included in Costs of Sales for the year ending February 28, 2015. The following table shows changes in the realignment accrual: Realignment Accrual (unaudited) (in thousands) Realignment reserve balance as of February 28, 2015 $ 456 Realignment costs utilized (27 ) Realignment reserve balance as of May 31, 2015 $ 429

Subsequent Events (Notes)

Subsequent Events (Notes)	3 Months Ended
	May. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On June 5, 2015, we completed the acquisition of substantially all the assets of US Galvanizing, LLC, a provider of steel corrosion coating services and a wholly-owned subsidiary of Trinity Industries, Inc. The acquisition of the US Galvanizing, LLC assets includes six galvanizing facilities located in Hurst, Texas; Kennedale, Texas; Big Spring, Texas; San Antonio, Texas; Morgan City, Louisiana; and Kosciusko, Mississippi. Additionally, the transaction includes Texas Welded Wire, a secondary business integrated within U.S. Galvanizing's Hurst, Texas facility. As part of this acquisition, AZZ and Meyer Steel Structures, a leading manufacturer of steel structures for electricity transmission and distribution and a wholly-owned subsidiary of Trinity Industries, Inc., have entered into a long-term supply and service agreement where AZZ will be the primary supplier of hot-dip galvanizing services for Meyer Steel Structures. US Galvanizing LLC was acquired to expand AZZ's existing geographic footprint in North America. The purchase agreement provided for AZZ's acquisition of all the assets, excluding prepaid assets, of US Galvanizing, LLC along with trade accounts payable in exchange for cash consideration.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	May. 31, 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: Three Months ended May 31, 2015 2014 (Unaudited) (In thousands except per share data) Numerator: Net income for basic and diluted earnings per common share $ 19,924 $ 14,925 Denominator: Denominator for basic earnings per common share–weighted average shares 25,756 25,623 Effect of dilutive securities: Employee and Director stock awards 106 116 Denominator for diluted earnings per common share 25,862 25,739 Earnings per share basic and diluted: Basic earnings per common share $ 0.77 $ 0.58 Diluted earnings per common share $ 0.77 $ 0.58

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	May. 31, 2015
Share-based Compensation [Abstract]
Restricted Stock Unit Awards Non-Vested	The activity of our non-vested restricted stock unit awards for the three months ended May 31, 2015 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-Vested Balance as of February 28, 2015 77,446 $ 41.31 Granted 47,113 46.65 Vested (10,134 ) 25.67 Forfeited (2,137 ) 44.15 Non-Vested Balance as of May 31, 2015 112,288 $ 45.26
Stock Appreciation Rights and Option Awards	A summary of the Company’s stock appreciation rights activity for the three months ended May 31, 2015 is as follows: SAR’s Weighted Average Exercise Price Outstanding as of February 28, 2015 376,982 $ 31.27 Granted — — Exercised (5,128 ) 23.69 Forfeited (4,078 ) 44.42 Outstanding as of May 31, 2015 367,776 $ 31.23 Exercisable as of May 31, 2015 258,856 $ 25.69
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: Period ended May 31, 2015 2014 (In thousands) Compensation Expense $ 771 $ 1,139 Income tax benefits $ 270 $ 399

Warranty Reserves (Tables)

Warranty Reserves (Tables)	3 Months Ended
	May. 31, 2015
Product Warranties Disclosures [Abstract]
Changes in the warranty reserves	The following table shows changes in the warranty reserves since the end of fiscal 2015: Warranty Reserve (unaudited) (in thousands) Balance at February 28, 2015 $ 2,287 Warranty costs incurred (439 ) Additions charged to income 844 Balance at May 31, 2015 $ 2,692

Realignment Costs (Tables)

Realignment Costs (Tables)	3 Months Ended
	May. 31, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]	The following table shows changes in the realignment accrual: Realignment Accrual (unaudited) (in thousands) Realignment reserve balance as of February 28, 2015 $ 456 Realignment costs utilized (27 ) Realignment reserve balance as of May 31, 2015 $ 429

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Numerator:
Net income for basic and diluted earnings per common share	$ 19,924	$ 14,925
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)	25,756	25,623
Effect of dilutive securities:
Employee and Director stock awards (shares)	106	116
Denominator for diluted earnings per common share (shares)	25,862	25,739
Earnings per share basic and diluted:
Basic earnings per Common share (usd per share)	$ 0.77	$ 0.58
Diluted earnings per common share (usd per share)	$ 0.77	$ 0.58

Stock-based Compensation (Detai

Stock-based Compensation (Details) - 3 months ended May. 31, 2015 - Restricted Stock Units (RSUs) [Member] - $ / shares	Total
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 28, 2015	77,446
Granted (shares)	47,113
Vested (shares)	(10,134)
Forfeited (shares)	(2,137)
Non-Vested Balance as of May 31, 2015	112,288
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 28, 2015	$ 41.31
Granted, Weighted Average Grant Date Fair Value (usd per share)	46.65
Vested, Weighted Average Grant Date Fair Value (usd per share)	25.67
Forfeited, Weighted Average Grant Date Fair Value (usd per share)	44.15
Non-Vested Balance as of May 31, 2015	$ 45.26

Stock-based Compensation (Det23

Stock-based Compensation (Details 1) - May. 31, 2015 - Stock Appreciation Rights (SARs) [Member] - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments, Number of Shares [Roll Forward]
Outstanding as of February 28, 2015	376,982
Granted (shares)	0
Exercised (shares)	(5,128)
Forfeited (shares)	(4,078)
Outstanding as of May 31, 2015	367,776
Exercisable as of May 31, 2015	258,856
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument, Weighted Average Grant Date Fair Value [Roll Forward]
Outstanding as of February 28, 2015	$ 31.27
Granted, Weighted Average Exercise Price (usd per share)	0
Exercised, Weighted Average Exercise Price (usd per share)	23.69
Forfeited, Weighted Average Exercise Price (usd per share)	44.42
Outstanding as of May 31, 2015	31.23
Exercisable as of May 31, 2015	$ 25.69

Stock-based Compensation (Det24

Stock-based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended
	May. 31, 2015	May. 31, 2014
Share based compensation expense and related income tax benefits
Compensation Expense	$ 771	$ 1,139
Income tax benefits	$ 270	$ 399

Stock-based Compensation (Det25

Stock-based Compensation (Details Textual) - May. 31, 2015	USD ($)share_based_compensation_plan$ / sharesshares
Share Based Compensation (Textual) [Abstract]
Number Of Share-Based Compensation Plans | share_based_compensation_plan	1
Shares authorized (shares)	1,500,000
Share for future issuance (shares)	1,397,482
Unrecognized compensation cost | $	$ 7,104,423
Employee Stock Purchase Plan [Member]
Share Based Compensation (Textual) [Abstract]
Term of offering under stock purchase plan	24 months
Granted option lower than	85.00%
Restricted common stock under plan | $	$ 25,000
Common stock purchased during period (shares)	5,000
Share-based Compensation Arrangement, By Share-based Payment Award, Common Shares Estimated To Be Issued	29,995
Restricted Stock [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term	3 years
Performance Shares [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term	3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	28,553
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 46.65
Stock Appreciation Rights (SARs) [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term	3 years
Term for the contract	7 years
Outstanding Average contractual term	3 years 10 months 05 days
Outstanding Aggregate intrinsic value | $	$ 17,600,000
Average remaining contractual term	3 years 1 month 15 days
Aggregate remaining intrinsic value | $	$ 12,400,000

Segments (Details)

Segments (Details) $ in Thousands	3 Months Ended
	May. 31, 2015USD ($)segment	May. 31, 2014USD ($)	Feb. 28, 2015USD ($)
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 195,830		$ 196,583
Number of operating segments | segment	2
Operations and assets by segment
Net Sales	$ 228,888	$ 216,126
Operating Income	32,885	27,847
Interest Expense	3,847	4,209
Gain (Loss) on Disposition of Property Plant Equipment	(424)	(27)
Other Nonoperating Income (Expense)	307	(31)
Income Before Income Taxes	29,155	23,696
Assets	991,160	983,539	936,914
Energy [Member]
Operations and assets by segment
Net Sales	137,003	130,521
Operating Income	17,956	13,657
Assets	556,308	559,341
Galvanizing Services [Member]
Operations and assets by segment
Net Sales	91,885	85,605
Operating Income	22,094	22,010
Assets	374,905	383,612
Corporate, Non-Segment [Member]
Operations and assets by segment
Operating Income	(7,165)	(7,820)
Corporate [Member]
Operations and assets by segment
Assets	59,947	40,586
UNITED STATES
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	173,562		173,712
Operations and assets by segment
Net Sales	182,270	176,439
CANADA
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	19,931		20,289
Other Countries [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	2,337		$ 2,582
International [Member]
Operations and assets by segment
Net Sales	$ 46,618	$ 39,687

Warranty Reserves (Details)

Warranty Reserves (Details) $ in Thousands	3 Months Ended
	May. 31, 2015USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Opening Balance	$ 2,287
Warranty costs incurred	439
Closing Balance	2,692
Product Warranty Accrual, Warranties Issued	$ 844

Realignment Costs (Details)

Realignment Costs (Details) - USD ($)	3 Months Ended	12 Months Ended
	May. 31, 2015	Feb. 28, 2015	Jun. 01, 2014
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 429,000	$ 456,354	$ 4,000,000
Restructuring Charges	$ (27,000)
Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Severance Costs		1,300,000
Gain (Loss) on Disposition of Assets		$ 2,700,000