AZZ (AZZ) 10-Q 5 Oct 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Aug. 31, 2016shares
Document and Entity Information [Abstract]
Entity Registrant Name	AZZ INC
Entity Central Index Key	8,947
Document Type	10-Q
Document Period End Date	Aug. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--02-28
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding	26,009,508

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Current Assets:
Cash and Cash Equivalents	$ 15,914,000	$ 40,191,000
Accounts receivable (net of allowance for doubtful accounts of $340 as of August 31, 2016 and $264 as of February 29, 2016)	137,017,000	131,416,000
Inventories:
Raw Material	72,055,000	66,548,000
Work-In-Process	41,773,000	28,539,000
Finished Goods	7,497,000	7,048,000
Costs and Estimated Earnings In Excess of Billings On Uncompleted Contracts	27,727,000	32,287,000
Deferred Income Taxes	248,000	200,000
Prepaid Expenses and Other	6,182,000	3,105,000
Total Current Assets	308,413,000	309,334,000
Property, Plant and Equipment, Net	224,001,000	226,333,000
Goodwill	306,031,000	292,527,000
Intangibles and Other Assets, Net	153,289,000	153,816,000
Total Assets	991,734,000	982,010,000
Current Liabilities:
Accounts Payable	50,300,000	46,748,000
Income Tax Payables	4,070,000	2,697,000
Accrued Salaries and Wages	18,030,000	30,473,000
Other Accrued Liabilities	22,145,000	20,406,000
Customer Advance Payment	20,862,000	15,652,000
Long Term Debt Due Within One Year	21,317,000	23,192,000
Billings In Excess of Costs and Estimated Earnings On Uncompleted Contracts	12,531,000	9,237,000
Total Current Liabilities	149,255,000	148,405,000
Long-Term Debt Due After One Year	280,058,000	302,429,000
Deferred Income Taxes	51,566,000	49,960,000
Liabilities	480,879,000	500,794,000
Shareholders' Equity:
Common stock, $1 Par Value, Shares Authorized 100,000; 26,009 Shares at August 31, 2016 and 25,874 Shares at February 29, 2016	26,009,000	25,874,000
Capital In Excess of Par Value	38,697,000	35,148,000
Retained Earnings	474,053,000	450,754,000
Accumulated Other Comprehensive Income	(27,904,000)	(30,560,000)
Total Shareholders' Equity	510,855,000	481,216,000
Total Liabilities and Shareholders' Equity	$ 991,734,000	$ 982,010,000

Condensed consolidated Balance3

Condensed consolidated Balance Sheets (Parenthetical) - USD ($)	Aug. 31, 2016	Feb. 29, 2016
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Doubtful Accounts	$ 339,797	$ 264,105
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)	26,009,508	25,873,690
Common Stock, Shares, Outstanding	26,009,508	25,873,690

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Income Statement [Abstract]
Net Sales	$ 195,045	$ 214,246	$ 437,712	$ 443,134
Costs and Expenses
Cost of Sales	153,159	160,741	332,499	330,325
Gross Profit	41,886	53,505	105,213	112,809
Selling, General and Administrative	26,997	27,086	55,816	53,505
Operating Income (Loss)	14,889	26,419	49,397	59,304
Interest Expense	3,580	4,023	7,505	7,869
Gain (Loss) on Disposition of Property Plant Equipment	(192)	25	(82)	449
Other Expense (Income) - net	(68)	547	(190)	855
Income Before Income Taxes	11,185	21,874	42,000	51,029
Income Tax Expense	1,162	4,631	10,914	13,862
Net Income	$ 10,023	$ 17,243	$ 31,086	$ 37,167
Earnings Per Common Share
Basic Earnings Per Share (usd per share)	$ 0.39	$ 0.67	$ 1.20	$ 1.44
Diluted Earnings Per Share (usd per share)	$ 0.38	$ 0.67	$ 1.19	$ 1.44

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Statement of Comprehensive Income [Abstract]
Net Income	$ 10,023	$ 17,243	$ 31,086	$ 37,167
Other Comprehensive Income (Loss):
Unrealized Translation Gains (Losses)	205	(4,796)	2,683	(5,160)
Interest rate swap, net of income tax of $7, $7, $15, and $15, respectively.	(14)	(14)	(27)	(27)
Other Comprehensive Income (Loss)	191	(4,810)	2,656	(5,187)
Comprehensive Income	$ 10,214	$ 12,433	$ 33,742	$ 31,980

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Statement of Comprehensive Income [Abstract]
Interest rate swap, income tax	$ 7	$ 7	$ 15	$ 15

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Cash Flows From Operating Activities:
Net Income	$ 31,086	$ 37,167
Adjustments To Reconcile Net Income To Net Cash Provided By Operating Activities:
Provision For Doubtful Accounts	11	(473)
Amortization and Depreciation	25,370	23,125
Deferred Income Tax Expense	1,509	(1,623)
Property, Plant and Equipment, Disposals	6,706	464
Net Loss (Gain) On Insurance Settlement or On Sale of Property, Plant & Equipment	82	(449)
Amortization of Deferred Borrowing Costs	639	680
Share Based Compensation Expense	3,198	2,523
Effects of Changes In Assets & Liabilities:
Accounts Receivable	(3,247)	(4,348)
Inventories	(15,832)	(511)
Prepaid Expenses and Other	(3,040)	(3,862)
Other Assets	141	(352)
Net Change In Billings Related To Costs and Estimated Earnings On Uncompleted Contracts	8,028	2,183
Accounts Payable	1,656	2,878
Other Accrued Liabilities and Income Taxes Payable	(6,279)	(2,545)
Net Cash Provided By Operating Activities	50,028	54,857
Cash Flows Used For Investing Activities:
Proceeds From Sale Or Insurance Settlement of Property, Plant, and Equipment	320	668
Purchase of Property, Plant and Equipment	(19,760)	(21,746)
Acquisition of Subsidiaries, Net of Cash Acquired	(22,679)	(49,818)
Net Cash From Investing Activities	(42,119)	(70,896)
Cash Flows From Financing Activities:
Excess Tax Benefits From Stock Options and Stock Appreciation Rights	0	(45)
Proceeds from revolving loan	86,000	89,481
Payments on revolving loan	(92,000)	(49,080)
Payments on Long Term Debt	(18,505)	(18,036)
Payments of Dividends	(7,787)	(7,731)
Net Cash Used In Financing Activities	(32,292)	14,589
Effect of Exchange Rate Changes on Cash	106	(851)
Net Increase (Decrease) In Cash & Cash Equivalents	(24,277)	(2,301)
Cash & Cash Equivalents At Beginning of Period	40,191	22,527
Cash & Cash Equivalents At End of Period	15,914	20,226
Supplemental Disclosures
Cash Paid For Interest	7,230	7,480
Cash Paid For Income Taxes	$ 9,764	$ 9,889

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Aug. 31, 2016 - 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. 29, 2016	$ 481,216	$ 25,874	$ 35,148	$ 450,754	$ (30,560)
Balance (shares) at Feb. 29, 2016		25,874
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Compensation (shares)		13
Stock Compensation	3,198	$ 13	3,185
Restricted Stock Units (shares)		21
Restricted Stock Units	(502)	$ 21	(523)
Stock Issued for Stock Appreciation Rights Shares		71
Stock Issued For Stock Appreciation Rights	(224)	$ 71	(295)
Employee Stock Purchase Plan (shares)		30
Employee Stock Purchase Plan	1,212	$ 30	1,182
Cash Dividend Paid	7,787			(7,787)
Net Income	31,086
Foreign Currency Translation	2,683				2,683
Interest rate swap, net of $15 income tax	(27)				(27)
Balance at Aug. 31, 2016	$ 510,855	$ 26,009	$ 38,697	$ 474,053	$ (27,904)
Balance (shares) at Aug. 31, 2016		26,009

Consolidated Statement of Shar9

Consolidated Statement of Shareholders' Equity (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Statement of Stockholders' Equity [Abstract]
Interest rate swap, income tax	$ 7	$ 7	$ 15	$ 15

Basis of Presentation

Basis of Presentation	6 Months Ended
	Aug. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	The Company and Basis of Presentation AZZ Inc. (“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 have two distinct operating segments: the Energy Segment and Galvanizing Segment. AZZ Galvanizing 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 29, 2016 , 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 29, 2016 , 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, 2017 is referred to as fiscal 2017. 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 August 31, 2016 , the results of its operations for the three and six months ended August 31, 2016 and 2015 , and cash flows for the six months ended August 31, 2016 and 2015 . These interim results are not necessarily indicative of results for a full year. Accounting Standards Recently Adopted In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The amendment in this ASU affects all organizations that issue share-based payment awards to employees and is intended to simplify several aspects of the accounting for these awards, including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows, and allowing an accounting policy election to account for forfeitures as they occur. As permitted by ASU 2016-09, the Company elected to early adopt ASU 2016-09 in the quarter ended August 31, 2016 with an effective date of March 1, 2016. As a result of the adoption, a tax benefit of $1.3 million was recorded in the current quarter. The tax benefit was driven primarily by the exercise, during the first six months of fiscal 2017, of share-based awards issued prior to FY2014. The adoption was on a prospective basis and therefore had no impact on prior years. In April 2015, the FASB issued 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. In August 2015, the FASB issued ASU 2015-15, "Interest-Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." ASU 2015-15 allows an entity to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Effective March 1, 2016, we adopted these standards which required the retroactive application and represented a change in accounting principle. The unamortized debt issuance costs of approximately $1.4 million associated with a portion of our outstanding debt , which were previously presented as a component of intangibles and other assets on the consolidated balance sheets, are reflected as a reduction to the carrying liability of our outstanding debt. Debt issuance costs associated with our revolving line of credit remain classified in intangibles and other assets and continue to be charged to interest expense over the term of the agreement. As a result of this change in accounting principal, the consolidated balance sheet as of February 29, 2016 was adjusted as follows: February 29, 2016 Previously Reported Effect of Adoption of Accounting Principle As Adjusted (in thousands) Assets: Intangibles and other assets $ 155,177 $ (1,361 ) $ 153,816 Total assets $ 983,371 $ (1,361 ) $ 982,010 Liabilities: Debt due after one year $ 303,790 $ (1,361 ) $ 302,429 Total liabilities $ 502,155 $ (1,361 ) $ 500,794 New Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, "Leases." The standard requires a lessee to recognize a liability to make lease payments and a right-of-use asset representing a right to use the underlying asset for the lease term on the balance sheet. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact that this standard will have on our consolidated 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	6 Months Ended
	Aug. 31, 2016
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 August 31, Six Months Ended August 31, 2016 2015 2016 2015 (Unaudited) (In thousands except per share data) Numerator: Net income for basic and diluted earnings per common share $ 10,023 $ 17,243 $ 31,086 $ 37,167 Denominator: Denominator for basic earnings per common share–weighted average shares 25,987 25,782 25,950 25,769 Effect of dilutive securities: Employee and Director stock awards 132 140 131 123 Denominator for diluted earnings per common share 26,119 25,922 26,081 25,892 Earnings per share basic and diluted: Basic earnings per common share $ 0.39 $ 0.67 $ 1.20 $ 1.44 Diluted earnings per common share $ 0.38 $ 0.67 $ 1.19 $ 1.44

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Aug. 31, 2016
Share-based Compensation [Abstract]
Stock-based 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, performance share units, stock options, and stock appreciation rights 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 August 31, 2016 the Company has approximately 1,283,882 shares available 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. Awards issued prior to fiscal 2015 generally have a three year cliff vesting schedule and award issued subsequent to fiscal 2015 generally vest ratably over a period of three years but these awards may vest early in accordance with the Plan’s accelerated vesting provisions. The activity of our non-vested restricted stock unit awards for the six month period ended August 31, 2016 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-Vested Balance as of February 29, 2016 98,693 $ 45.03 Granted 43,585 57.47 Vested (30,324 ) 45.78 Forfeited — — Non-Vested Balance as of August 31, 2016 111,954 $ 49.67 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 specific industry peer group as set forth in the plan. The activity of our non-vested performance share unit awards for the six month period ended August 31, 2016 is as follows: Performance Weighted Non-Vested Balance as of February 29, 2016 27,415 $ 46.65 Granted 24,011 57.47 Vested — — Forfeited — — Non-Vested Balance as of August 31, 2016 51,426 $ 51.70 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 six month period ended August 31, 2016 is as follows: SAR’s Weighted Average Exercise Price Outstanding as of February 29, 2016 312,748 $ 34.23 Granted — — Exercised (128,429 ) 25.71 Forfeited — — Outstanding as of August 31, 2016 184,319 $ 40.17 Exercisable as of August 31, 2016 133,371 $ 38.53 The average remaining contractual term for those stock appreciation rights outstanding at August 31, 2016 is 3.76 years, with an aggregate intrinsic value of $4.8 million . The average remaining contractual terms for those stock appreciation rights that are exercisable as of August 31, 2016 is 3.53 years, with an aggregate intrinsic value of $3.7 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 six month period ended August 31, 2016 , the Company issued 30,137 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 August 31, 2016 2015 (In thousands) (Unaudited) Compensation Expense $ 3,198 $ 2,523 Income tax benefits $ 1,023 $ 883 Unrecognized compensation cost related to restricted stock units, performance share unit awards, stock appreciation rights, and the employee stock purchase plan at August 31, 2016 totals $7.0 million . 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. As of August 31, 2016 , no shares have been repurchased under the Company's share repurchase program (see Part II, Item 2) to satisfy these requirements. The Company will periodically consider whether to utilize this program to repurchase shares in the future.

Segments

Segments	6 Months Ended
	Aug. 31, 2016
Segment Reporting [Abstract]
Segments	Segments Information regarding operations and assets by segment was as follows: Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 (Unaudited) Net Sales: Energy $ 97,601 $ 110,777 $ 235,703 $ 247,780 Galvanizing 97,444 103,469 202,009 195,354 Total net sales 195,045 214,246 437,712 443,134 Operating Income: Energy 8,195 9,005 26,948 26,961 Galvanizing 15,032 25,331 39,334 47,425 Corporate (8,338 ) (7,917 ) (16,885 ) (15,082 ) Total operating income 14,889 26,419 49,397 59,304 Interest expense 3,580 4,023 7,505 7,869 Net (gain) loss on sale of property, plant and equipment and insurance proceeds 192 (25 ) 82 (449 ) Other (income) expense, net (68 ) 547 (190 ) 855 Income before income taxes $ 11,185 $ 21,874 $ 42,000 $ 51,029 Total Assets: Energy $ 543,141 $ 527,769 $ 543,141 $ 527,769 Galvanizing 423,587 431,494 423,587 431,494 Corporate 25,006 23,136 25,006 23,136 $ 991,734 $ 982,399 $ 991,734 $ 982,399 Financial Information About Geographical Areas Below is a breakdown of selected financial information by geographical area: Three Months Ended August 31, Six Months Ended August 31, 2016 2015 2016 2015 (Unaudited) Net Sales: U.S. $ 156,897 $ 163,664 $ 345,557 $ 345,934 International 38,148 50,928 92,311 97,546 Eliminations — (346 ) (156 ) (346 ) Total Net Sales $ 195,045 $ 214,246 $ 437,712 $ 443,134 August 31, 2016 February 29, 2016 (In thousands) (Unaudited) Property, Plant and Equipment, Net: U.S. $ 202,944 $ 204,587 Canada 18,259 17,868 Other Countries 2,798 3,878 Total Property, Plant and Equipment, Net $ 224,001 $ 226,333

Warranty Reserves

Warranty Reserves	6 Months Ended
	Aug. 31, 2016
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 2016: Warranty Reserve (unaudited) (in thousands) Balance at February 29, 2016 $ 2,915 Warranty costs incurred (1,150 ) Additions charged to income 880 Balance at August 31, 2016 $ 2,645

DEBT (Notes)

DEBT (Notes)	6 Months Ended
	Aug. 31, 2016
Debt [Abstract]
Long-term Debt [Text Block]	Debt Our debt consisted of the following: As of August 31, 2016 February 29, 2016 (In thousands) (Unaudited) 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 28,572 42,857 Term Note, due in quarterly installments beginning in June 2013 through March 2018 53,906 58,125 Revolving line of credit with bank 95,000 101,000 Total debt 302,478 326,982 Unamortized debt issuance costs for Senior Notes and Term Note (1,103 ) (1,361 ) Total debt, net 301,375 325,621 Less amount due within one year (21,317 ) (23,192 ) Debt due after one year, net $ 280,058 $ 302,429

Realignment (Notes)

Realignment (Notes)	6 Months Ended
	Aug. 31, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Activities Disclosure [Text Block]	Realignment Costs As part of its ongoing efforts to optimize cost and effectiveness, during the second quarter of fiscal 2017, the Company undertook a review of its operations in order to optimize financial performance of its operating assets. As a result, the Company recognized $8.0 million of realignment charges in the second quarter of fiscal 2017. A total of $6.7 million was included in Cost of Sales for the disposition and write off of certain fixed assets within the Galvanizing Segment, including the cost of closing two plants, the write off of certain assets related to the conversion of a third plant from a standard galvanizing plant to a galvanized rebar plant, and the cost of writing off certain other functionally obsolete assets across other galvanizing plants. We also reserved $1.3 million in Selling, General and Administrative Expense for realignment costs related to one-time employee severance associated with changes needed to improve management efficiency in the Energy and Galvanizing Segments. The following table shows changes in the realignment accrual for the six months ended August 31, 2016: Realignment Accrual (unaudited) (in thousands) Realignment reserve balance as of February 29, 2016 $ 61 Realignment costs utilized (38 ) Additions to reserve 1,260 Realignment reserve balance as of August 31, 2016 $ 1,283

Acquisitions (Notes)

Acquisitions (Notes)	6 Months Ended
	Aug. 31, 2016
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	Acquisitions On March 1, 2016, we completed an acquisition of the equity securities of Power Electronics, Inc. ("PEI"), a Millington, Maryland-based manufacturer and integrator of electrical enclosure systems. The acquisition of PEI will enhance our capacity to serve existing and new customers in a diverse set of industries along the Eastern seaboard of the United States. Unaudited pro forma results of operations assuming the PEI acquisition had taken place at the beginning of each period are not provided because the historical operating results of PEI were not significant and pro forma results would not be significantly different from reported results for the periods presented.

Subsequent Events (Notes)

Subsequent Events (Notes)	6 Months Ended
	Aug. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On October 3, 2016, AZZ entered into an agreement to divest its indirectly held subsidiary, Nuclear Logistics LLC (“NL”) to Westinghouse Electric Company, LLC (“Westinghouse”) in exchange for cash. Terms of the transaction were not disclosed, and are subject to customary terms and conditions. The transaction is expected to close in the fall of 2016. Management has determined a potential loss is reasonably possible however, due to the timing until closing and various other factors included in the contract, management does not believe that the amount of such possible loss or a range of potential loss is reasonably estimable.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Aug. 31, 2016
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 August 31, Six Months Ended August 31, 2016 2015 2016 2015 (Unaudited) (In thousands except per share data) Numerator: Net income for basic and diluted earnings per common share $ 10,023 $ 17,243 $ 31,086 $ 37,167 Denominator: Denominator for basic earnings per common share–weighted average shares 25,987 25,782 25,950 25,769 Effect of dilutive securities: Employee and Director stock awards 132 140 131 123 Denominator for diluted earnings per common share 26,119 25,922 26,081 25,892 Earnings per share basic and diluted: Basic earnings per common share $ 0.39 $ 0.67 $ 1.20 $ 1.44 Diluted earnings per common share $ 0.38 $ 0.67 $ 1.19 $ 1.44

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Aug. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block]	The activity of our non-vested performance share unit awards for the six month period ended August 31, 2016 is as follows: Performance Weighted Non-Vested Balance as of February 29, 2016 27,415 $ 46.65 Granted 24,011 57.47 Vested — — Forfeited — — Non-Vested Balance as of August 31, 2016 51,426 $ 51.70
Restricted Stock Unit Awards Non-Vested	The activity of our non-vested restricted stock unit awards for the six month period ended August 31, 2016 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-Vested Balance as of February 29, 2016 98,693 $ 45.03 Granted 43,585 57.47 Vested (30,324 ) 45.78 Forfeited — — Non-Vested Balance as of August 31, 2016 111,954 $ 49.67
Stock Appreciation Rights and Option Awards	A summary of the Company’s stock appreciation rights activity for the six month period ended August 31, 2016 is as follows: SAR’s Weighted Average Exercise Price Outstanding as of February 29, 2016 312,748 $ 34.23 Granted — — Exercised (128,429 ) 25.71 Forfeited — — Outstanding as of August 31, 2016 184,319 $ 40.17 Exercisable as of August 31, 2016 133,371 $ 38.53
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 August 31, 2016 2015 (In thousands) (Unaudited) Compensation Expense $ 3,198 $ 2,523 Income tax benefits $ 1,023 $ 883

Warranty Reserves (Tables)

Warranty Reserves (Tables)	6 Months Ended
	Aug. 31, 2016
Product Warranties Disclosures [Abstract]
Changes in the warranty reserves	The following table shows changes in the warranty reserves since the end of fiscal 2016: Warranty Reserve (unaudited) (in thousands) Balance at February 29, 2016 $ 2,915 Warranty costs incurred (1,150 ) Additions charged to income 880 Balance at August 31, 2016 $ 2,645

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Aug. 31, 2016
Debt [Abstract]
Schedule of Debt [Table Text Block]	Our debt consisted of the following: As of August 31, 2016 February 29, 2016 (In thousands) (Unaudited) 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 28,572 42,857 Term Note, due in quarterly installments beginning in June 2013 through March 2018 53,906 58,125 Revolving line of credit with bank 95,000 101,000 Total debt 302,478 326,982 Unamortized debt issuance costs for Senior Notes and Term Note (1,103 ) (1,361 ) Total debt, net 301,375 325,621 Less amount due within one year (21,317 ) (23,192 ) Debt due after one year, net $ 280,058 $ 302,429

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015
Numerator:
Net income for basic and diluted earnings per common share	$ 10,023	$ 17,243	$ 31,086	$ 37,167
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)	25,987	25,782	25,950	25,769
Effect of dilutive securities:
Employee and Director stock awards (shares)	132	140	131	123
Denominator for diluted earnings per common share (shares)	26,119	25,922	26,081	25,892
Earnings per share basic and diluted:
Basic earnings per Common share (usd per share)	$ 0.39	$ 0.67	$ 1.20	$ 1.44
Diluted earnings per common share (usd per share)	$ 0.38	$ 0.67	$ 1.19	$ 1.44

Stock-based Compensation (Detai

Stock-based Compensation (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Aug. 31, 2016$ / sharesshares
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, 2016 | shares	98,693
Granted (shares) | shares	43,585
Vested (shares) | shares	(30,324)
Forfeited (shares) | shares	0
Non-Vested Balance as of August 31, 2016 | shares	111,954
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, 2016 | $ / shares	$ 45.03
Granted, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	57.47
Vested, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	45.78
Forfeited, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	0
Non-Vested Balance as of August 31, 2016 | $ / shares	$ 49.67

Stock-based Compensation (Det25

Stock-based Compensation (Details 1) - Stock Appreciation Rights (SARs) [Member] - $ / shares	6 Months Ended
	Aug. 31, 2016	Feb. 29, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	184,319	312,748
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 40.17	$ 34.23
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments, Number of Shares [Roll Forward]
Granted (shares)	0
Exercised (shares)	(128,429)
Forfeited (shares)	0
Exercisable as of August 31, 2016	133,371
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument, Weighted Average Grant Date Fair Value [Roll Forward]
Granted, Weighted Average Exercise Price (usd per share)	$ 0
Exercised, Weighted Average Exercise Price (usd per share)	25.71
Forfeited, Weighted Average Exercise Price (usd per share)	0
Exercisable as of August 31, 2016	$ 38.53

Stock-based Compensation (Det26

Stock-based Compensation (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015
Share based compensation expense and related income tax benefits
Compensation Expense	$ 3,198	$ 2,523
Income tax benefits	$ 1,023	$ 883

Stock-based Compensation (Det27

Stock-based Compensation (Details Textual)	6 Months Ended
	Aug. 31, 2016USD ($)share_based_compensation_plan$ / sharesshares	Feb. 29, 2016$ / 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)	1,283,882
Unrecognized compensation cost | $	$ 6,964,605
Restricted Stock [Member]
Share Based Compensation (Textual) [Abstract]
Vesting ratably term	3 years
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	51,426	27,415
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 51.70	$ 46.650
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	24,011
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 57.47
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 0
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 9 months 5 days
Outstanding Aggregate intrinsic value | $	$ 4,800,000
Average remaining contractual term	3 years 6 months 10 days
Aggregate remaining intrinsic value | $	$ 3,700,000
Employee Stock [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	30,137

Segments (Details)

Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 224,001,000		$ 224,001,000		$ 226,333,000
Operations and assets by segment
Net Sales	195,045,000	$ 214,246,000	437,712,000	$ 443,134,000
Operating Income	14,889,000	26,419,000	49,397,000	59,304,000
Interest Expense	3,580,000	4,023,000	7,505,000	7,869,000
Gain (Loss) on Disposition of Property Plant Equipment	192,000	(25,000)	82,000	(449,000)
Other Nonoperating Income (Expense)	(68,000)	547,000	(190,000)	855,000
Income Before Income Taxes	11,185,000	21,874,000	42,000,000	51,029,000
Assets	991,734,000	982,399,164	991,734,000	982,399,164	982,010,000
Energy [Member]
Operations and assets by segment
Net Sales	97,601,000	110,777,000	235,703,000	247,780,000
Operating Income	8,195,000	9,005,000	26,948,000	26,961,000
Assets	543,140,895	527,769,472	543,140,895	527,769,472
Galvanizing Services [Member]
Operations and assets by segment
Net Sales	97,444,000	103,469,000	202,009,000	195,354,000
Operating Income	15,032,000	25,331,000	39,334,000	47,425,000
Assets	423,587,342	431,493,574	423,587,342	431,493,574
Corporate, Non-Segment [Member]
Operations and assets by segment
Operating Income	(8,338,000)	(7,917,000)	(16,885,000)	(15,082,000)
Corporate [Member]
Operations and assets by segment
Assets	25,006,000	23,136,118	25,006,000	23,136,118
UNITED STATES
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	202,944,000		202,944,000		204,587,000
Operations and assets by segment
Net Sales	156,897,000	163,664,000	345,557,000	345,934,000
CANADA
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	18,259,000		18,259,000		17,868,000
Other Countries [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	2,798,000		2,798,000		$ 3,878,000
International [Member]
Operations and assets by segment
Net Sales	38,148,000	50,928,000	92,311,000	97,546,000
Geography Eliminations [Member]
Operations and assets by segment
Net Sales	$ 0	$ (346,000)	$ (156,000)	$ (346,000)

Warranty Reserves (Details)

Warranty Reserves (Details) $ in Thousands	6 Months Ended
	Aug. 31, 2016USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Opening Balance	$ 2,915
Warranty costs incurred	1,150
Closing Balance	2,645
Product Warranty Accrual, Warranties Issued	$ 880

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Aug. 31, 2016	Feb. 29, 2016
Debt Instrument [Line Items]
Long-term Debt	$ 301,375	$ 325,621
Long-term Debt, Gross	302,478	326,982
Unamortized Debt Issuance Expense	(1,103)	(1,361)
Debt, Current	(21,317)	(23,192)
Long-term Debt, Excluding Current Maturities	280,058	302,429
Senior Notes [Member] | Unsecured Senior Notes Due January 2021 [Member]
Debt Instrument [Line Items]
Long-term Debt	125,000	125,000
Senior Notes [Member] | Unsecured Senior Notes Due March 2012 through March 2018 [Member]
Debt Instrument [Line Items]
Long-term Debt	28,572	42,857
Medium-term Notes [Member]
Debt Instrument [Line Items]
Long-term Debt	53,906	58,125
Line of Credit [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 95,000	$ 101,000

Realignment (Details)

Realignment (Details) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2016	Aug. 31, 2015	Feb. 29, 2016
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ (6,706)	$ (464)
Restructuring Reserve	1,283		$ 61
Restructuring Reserve, Accrual Adjustment	(38)
Restructuring Reserve, Period Increase (Decrease)	1,260
Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	6,700
Severance Costs	$ 1,300