AZZ (AZZ) 10-Q 9 Oct 18 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Aug. 31, 2018shares
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, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,019
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--02-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	26,050,242

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Aug. 31, 2018	Feb. 28, 2018
Current assets:
Cash and cash equivalents	$ 9,204	$ 20,853
Accounts receivable (net of allowance for doubtful accounts of $2,398 as of August 31, 2018 and $569 as of February 28, 2018)	152,468	141,488
Inventories:
Raw material	103,959	98,475
Work-in-process	354	2,544
Finished goods	8,565	9,742
Contract assets	71,236	51,787
Prepaid expenses and other	6,657	4,265
Total current assets	352,443	329,154
Property, plant and equipment, net	209,404	216,855
Goodwill	324,080	321,307
Intangibles and other assets, net	152,097	160,893
Total assets	1,038,024	1,028,209
Current liabilities:
Accounts payable	43,247	54,162
Income tax payable	2,453	144
Accrued salaries and wages	18,725	19,011
Other accrued liabilities	22,768	19,622
Customer deposits	1,311	1,816
Contract liabilities	23,763	22,698
Debt due within one year	0	14,286
Total current liabilities	112,267	131,739
Debt due after one year, net	295,679	286,609
Other long-term liabilities	10,759	11,696
Deferred income taxes	33,394	32,962
Total liabilities	452,099	463,006
Shareholders’ equity:
Common stock, $1 par, shares authorized 100,000; 26,050 shares issued and outstanding at August 31, 2018 and 25,959 shares issued and outstanding at February 28, 2018	26,050	25,959
Capital in excess of par value	42,787	38,446
Retained earnings	544,136	526,018
Accumulated other comprehensive loss	(27,048)	(25,220)
Total shareholders’ equity	585,925	565,203
Total liabilities and shareholders' equity	$ 1,038,024	$ 1,028,209

Condensed consolidated Balanc_2

Condensed consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Aug. 31, 2018	Feb. 28, 2018
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Doubtful Accounts	$ 2,398	$ 569
Common Stock, Par Value (usd per share)	$ 1	$ 1
Common Stock, Shares Authorized (shares)	100,000	100,000
Common Stock, Shares Issued (shares)	26,050	25,959
Common Stock, Shares, Outstanding	26,050	25,959

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Income Statement [Abstract]
Net sales	$ 222,787	$ 196,329	$ 485,023	$ 401,612
Costs and Expenses
Cost of sales	175,883	152,529	379,414	310,430
Gross margin	46,904	43,800	105,609	91,182
Selling, general and administrative	29,799	26,413	64,808	53,772
Operating income	17,105	17,387	40,801	37,410
Interest expense	3,980	3,400	7,818	6,760
Other (income) expense, net	(857)	260	(1,148)	75
Income before income taxes	13,982	13,727	34,131	30,575
Income tax expense	2,738	3,941	7,169	8,727
Net income	$ 11,244	$ 9,786	$ 26,962	$ 21,848
Earnings Per Common Share
Basic Earnings Per Share (usd per share)	$ 0.43	$ 0.38	$ 1.04	$ 0.84
Diluted Earnings Per Share (usd per share)	0.43	0.38	1.03	0.84
Common Stock, Dividends, Per Share, Declared	$ 0.17	$ 0.17	$ 0.34	$ 0.34

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 11,244	$ 9,786	$ 26,962	$ 21,848
Other comprehensive income (loss):
Foreign currency translation adjustments, net of income tax of $0	455	5,326	(1,801)	4,328
Interest rate swap, net of income tax of $7, $7, $15 and $15, respectively.	(13)	(14)	(27)	(27)
Other comprehensive income (loss)	442	5,312	(1,828)	4,301
Comprehensive income	$ 11,686	$ 15,098	$ 25,134	$ 26,149

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Statement of Comprehensive Income [Abstract]
Interest rate swap, income tax	$ 7	$ 7	$ 15	$ 15

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Cash Flows From Operating Activities:
Net income	$ 26,962	$ 21,848
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts	2,050	47
Amortization and depreciation	25,698	24,984
Deferred income taxes	467	850
Net loss on property, plant and equipment due to impairment	811	0
Net loss (gain) on sale of property, plant and equipment	(308)	554
Amortization of deferred borrowing costs	343	303
Share-based compensation expense	3,659	3,400
Effects of changes in assets and liabilities:
Accounts receivable	(13,179)	939
Inventories	(2,171)	(13,304)
Prepaid expenses and other	(2,390)	(4,021)
Other assets	(1,017)	(1,106)
Net change in contract assets and liabilities	(19,278)	(14,197)
Accounts payable	(10,025)	(6,770)
Other accrued liabilities and income taxes payable	5,845	(10,742)
Net cash provided by operating activities	17,467	2,785
Cash Flows Used For Investing Activities:
Proceeds from sale of property, plant and equipment	339	177
Purchase of Property, Plant and Equipment	(7,179)	(16,636)
Acquisition of Subsidiaries, Net of Cash Acquired	(8,000)	(10,250)
Net Cash From Investing Activities	(14,840)	(26,709)
Cash Flows From Financing Activities:
Proceeds from revolving loan	178,000	209,000
Payments on revolving loan	(169,000)	(115,500)
Payments on Long Term Debt	(14,286)	(63,504)
Payments for Repurchase of Common Stock	0	(5,185)
Payments of Dividends	(8,844)	(8,845)
Net Cash Used In Financing Activities	(14,130)	15,966
Effect of Exchange Rate Changes on Cash	(146)	205
Net Increase (Decrease) In Cash & Cash Equivalents	(11,649)	(7,753)
Cash & Cash Equivalents At Beginning of Period	20,853	11,302
Cash & Cash Equivalents At End of Period	9,204	3,549
Supplemental Disclosures
Cash Paid For Interest	7,838	7,020
Cash Paid For Income Taxes	$ 1,514	$ 7,605

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (Unaudited) - 6 months ended Aug. 31, 2018 - 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, 2018	$ 565,203	$ 25,959	$ 38,446	$ 526,018	$ (25,220)
Balance (shares) at Feb. 28, 2018		25,959
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Compensation (shares)		15
Stock Compensation	3,659	$ 15	3,644
Restricted Stock Units (shares)		30
Restricted Stock Units	(533)	$ 30	(563)
Stock Issued for Stock Appreciation Rights Shares		9
Stock Issued For Stock Appreciation Rights	(21)	$ 9	(30)
Employee Stock Purchase Plan (shares)		37
Employee Stock Purchase Plan	1,327	$ 37	1,290
Cash Dividend Paid	(8,844)			(8,844)
Net income	26,962			26,962
Foreign Currency Translation	(1,801)				(1,801)
Interest rate swap	(27)				(27)
Balance at Aug. 31, 2018	$ 585,925	$ 26,050	$ 42,787	$ 544,136	$ (27,048)
Balance (shares) at Aug. 31, 2018		26,050

Basis of Presentation (Notes)

Basis of Presentation (Notes)	6 Months Ended
	Aug. 31, 2018
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. The Company is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company has two distinct operating segments: the Energy segment and Metal Coatings segment. 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. AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2018 , 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, 2018 , 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, 2019 is referred to as fiscal 2019. 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, 2018 , the results of its operations for the three and six months ended August 31, 2018 and 2017 , and cash flows for the six months ended August 31, 2018 and 2017 . These interim results are not necessarily indicative of results for a full year. Accounting Standards Recently Adopted On March 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments ("ASC 606") using the modified retrospective method applied to those contracts which were not completed as of February 28, 2018. Results for operating periods beginning on or after March 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. However, for the three and six months ended August 31, 2018, the impact of applying ASC 606 as opposed to applying legacy accounting guidance did not result in a significant change to reported revenues or costs of revenues. Accordingly, no reconciliation has been provided to show the difference between applying ASC 606 and legacy guidance for the three and six months ended August 31, 2018 . In addition, there was no cumulative effect adjustment to the beginning retained earnings on March 1, 2018 related to the adoption. See Note 2 for a description of the Company's accounting policy resulting from the adoption of ASC 606. On March 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The adoption did not have a material impact on the Company's consolidated statements of cash flows. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU will be effective for the Company in the first quarter of its fiscal year 2020 and early adoption is permitted. The ASU requires adoption based upon a modified retrospective transition approach. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard to its consolidated financial statements and related disclosures. In particular, the Company has made progress in assessing its portfolio of leases for accounting and disclosure purposes. To address the new standard's requirements, the Company is also in the process of assessing the design of the future lease accounting procedures and related internal controls, selecting and implementing lease accounting software, and finalizing policies, including the election of any practical expedients permitted by the standard. While the Company has not yet completed its evaluation of the financial statement impact of the new lease accounting standard, the Company expects to recognize right of use assets and lease liabilities for its operating leases in its consolidated balance sheets upon adoption and thereafter.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Aug. 31, 2018
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Summary of Significant Accounting Policies The Company’s significant accounting policies are detailed in Note 1 of its Annual Report on Form 10-K for the year ended February 28, 2018. The following section includes revised accounting policies related to the adoption of ASC 606. Revenue recognition The Company determines revenue recognition through the following steps: 1) Identification of the contract with a customer, 2) Identification of the performance obligations in the contract, 3) Determination of the transaction price, 4) Allocation of the transaction price to performance obligations in the contract, and 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. The amount and timing of revenue recognition varies by segment based on the nature of the goods or services provided and the terms and conditions of the customer contract. Energy Segment AZZ's Energy segment is a provider of specialized products and services designed to support industrial, nuclear and electrical applications. Within this segment, the contract is governed by a customer purchase order and an executed product or services agreement. The contract generally specifies the delivery of what constitutes a single performance obligation consisting of either custom built products, custom services, or off-the-shelf products. When the Company does enter into an arrangement with multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling prices of the goods or services being provided to the customer and revenue is recognized upon the satisfaction of each performance obligation. The Company combines contracts for revenue recognition purposes that are executed with the same customer within a short timeframe from each other and that purport to be for a single commercial objective. For custom built products, the Company recognizes revenues over time provided that the goods do not have an alternative use to the Company and the Company has an unconditional right to payment for work completed to date plus a reasonable margin. For custom services, which consist of specialized welding and other professional services, the Company recognizes revenues over time as the services are rendered due to the fact that the services enhance a customer owned asset. For off-the-shelf products, which consist of tubing and lighting products, the Company recognizes revenue at a point-in-time upon the transfer of the goods to the customer. For services and custom built products, the Company recognizes revenues over time using a cost-to-cost input measure. This requires the Company to estimate the total contract revenues, costs and margin, which can involve significant management judgment. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, management reviews and updates its contract related estimates regularly. The Company recognizes adjustments in estimated margin on contracts under a cumulative catch-up basis and subsequent revenues are recognized using the adjusted estimate. If the estimate of contract margin indicates an anticipated loss on the contract, the Company recognizes the total estimated loss in the period it is identified. Due to the custom nature of the goods and services provided, contracts within the Energy segment are often modified to account for changes in contract specifications and requirements. A contract modification exists when the modification either creates new, or changes the existing, enforceable rights and obligations in the contract. For the Company, most contract modifications are related to goods or services that are not distinct from those in the original contract due to the significant interrelationship or interdependencies between the deliverables. Such modifications are accounted for as if they were part of the original contract. As a result, the transaction price and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In addition to fixed consideration, the Company’s contracts within its Energy segment can include variable consideration, including claims, incentive fees, liquidated damages or other penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value or the most likely amount method, whichever is expected to better predict the amount. Metal Coatings Segment AZZ’s Metal Coatings segment is a provider of hot dip galvanizing, powder coating and other metal coating applications to the steel fabrication industry. Within this segment, the contract is governed by a customer purchase order or work order. The contract generally specifies the delivery of what constitutes a single performance obligation consisting of metal coating services. The Company combines contracts for revenue recognition purposes that are executed with the same customer within a short timeframe from each other and that purport to be for a single commercial objective. The Company recognizes revenue over time as the metal coating is applied to the customer provided material as the process enhances a customer controlled asset. Contract modifications are rare within this segment and most contracts are on a fixed price basis with no variable consideration. Contract Assets and Liabilities The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer advances and deposits) on the consolidated balance sheet, primarily related to the Company’s Energy segment. Amounts are billed as work progresses in accordance with agreed upon contractual terms, either at periodic intervals (e.g., weekly or monthly) or upon achievement of contractual milestones. Billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, the Company can receive advances or deposits from its customers, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. For the six months ended August 31, 2018 , the Company recognized $20.1 million of revenues from amounts that were included in contract liabilities at February 28, 2018. The Company did not record any revenues for the three or six months ended August 31, 2018 related to performance obligations satisfied in prior periods. The Company expects to recognize revenues of approximately $18.2 million , $4.1 million and $1.5 million in fiscal 2019 , 2020 and 2021 , respectively, related to the $23.8 million balance of contract liabilities as of August 31, 2018 . The increases or decreases in accounts receivable, contract assets and contract liabilities during the three and six months ended August 31, 2018 were due primarily to normal timing differences between the Company’s performance and customer payments. The Lectrus acquisition described in Note 8 had no impact on contract assets or liabilities as of the date of acquisition. Other No general rights of return exist for customers and the Company establishes provisions for estimated warranties. The Company generally does not sell extended warranties. Revenue is recognized net of applicable sales and other taxes. The Company does not adjust the contract price for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a good or service to a customer and when the customer pays for that good or service will be one year or less, which is generally the case. Sales commissions are deferred and recognized over the same period as the related revenues. Shipping and handling is treated as a fulfillment obligation instead of a separate performance obligation and such costs are expensed as incurred. Disaggregated Revenue Revenue by segment and geography is disclosed in Note 5. In addition, the following table presents disaggregated revenue by customer industry (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: Industrial - oil and gas, construction, and general* $ 120,305 $ 115,834 $ 271,613 $ 228,919 Transmission and distribution* 60,152 41,229 126,106 84,339 Power generation* 42,330 39,266 87,304 88,354 Total net sales $ 222,787 $ 196,329 $ 485,023 $ 401,612 * The Company revised its internal methodology for allocating revenues by customer industry during the three months ended August 31, 2018. All prior periods have been recast to conform to this revised methodology.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Aug. 31, 2018
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 (in thousands, expect per share data): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Numerator: Net income for basic and diluted earnings per common share $ 11,244 $ 9,786 $ 26,962 $ 21,848 Denominator: Denominator for basic earnings per common share–weighted average shares 26,019 25,970 26,001 25,991 Effect of dilutive securities: Employee and director stock awards 72 66 61 74 Denominator for diluted earnings per common share 26,091 26,036 26,062 26,065 Earnings per share basic and diluted: Basic earnings per common share $ 0.43 $ 0.38 $ 1.04 $ 0.84 Diluted earnings per common share $ 0.43 $ 0.38 $ 1.03 $ 0.84

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Aug. 31, 2018
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, 2018 , the Company had approximately 1,248,775 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 generally vest ratably over a period of three years but these awards may vest earlier in accordance with the Plan’s accelerated vesting provisions. A summary of the Company’s non-vested restricted stock unit award activity for the six month period ended August 31, 2018 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested balance as of February 28, 2018 109,777 $ 56.62 Granted 82,371 42.00 Vested (37,670 ) 54.63 Forfeited (7,290 ) 55.27 Non-vested balance as of August 31, 2018 147,188 $ 49.01 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. A summary of the Company’ non-vested performance share unit award activity for the six month period ended August 31, 2018 is as follows: Performance Weighted Non-vested balance as of February 28, 2018 70,030 $ 54.59 Granted 46,183 42.00 Vested (3,378 ) 46.65 Forfeited (29,710 ) 49.51 Non-vested balance as of August 31, 2018 83,125 $ 49.74 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, 2018 is as follows: SARs Weighted Average Exercise Price Outstanding as of February 28, 2018 148,513 $ 43.29 Granted — — Exercised (43,928 ) 40.96 Forfeited — — Outstanding as of August 31, 2018 104,585 $ 44.27 Exercisable as of August 31, 2018 104,585 $ 44.27 The average remaining contractual term for those stock appreciation rights outstanding as of August 31, 2018 is 2.33 years, with an aggregate intrinsic value of $1.0 million . The average remaining contractual terms for those stock appreciation rights that are exercisable as of August 31, 2018 is 2.33 years, with an aggregate intrinsic value of $1.0 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, 2018 , the Company issued 37,224 shares under the Employee Stock Purchase Plan. Share-based Compensation Expense Share-based compensation expense and related income tax benefits related to all the plans listed above were as follows (in thousands): Six Months Ended August 31, 2018 2017 Compensation expense $ 3,659 $ 3,400 Income tax benefits $ 823 $ 1,088 Unrecognized compensation cost related to restricted stock units, performance share unit awards, stock appreciation rights, and the employee stock purchase plan at August 31, 2018 totals $8.8 million . The Company’s policy is to issue shares required under these plans from the Company’s authorized but unissued shares.

Segments

Segments	6 Months Ended
	Aug. 31, 2018
Segment Reporting [Abstract]
Segments	Segments Segment Information Net sales and operating income by segment for each period were as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: Energy $ 106,515 $ 97,299 $ 253,501 $ 210,504 Metal Coatings 116,272 99,030 231,522 191,108 Total net sales $ 222,787 $ 196,329 $ 485,023 $ 401,612 Operating income (loss): Energy $ 4,273 $ 2,363 $ 14,231 $ 9,074 Metal Coatings 22,076 23,409 47,260 44,651 Corporate (9,244 ) (8,385 ) (20,690 ) (16,315 ) Total operating income $ 17,105 $ 17,387 $ 40,801 $ 37,410 Asset balances by segment for each period were as follows (in thousands): August 31, 2018 February 28, 2018 Total assets: Energy $ 574,230 $ 554,866 Metal Coatings 453,821 460,575 Corporate 9,973 12,768 Total $ 1,038,024 $ 1,028,209 For the three and six months ended August 31, 2018, the Company recognized impairment charges of $0.8 million, which were classified within cost of sales in the consolidated statement of income and were related to property, plant and equipment in the Metal Coatings segment that was vacated or abandoned upon the consolidation of two galvanizing facilities in the Gulf Coast region of the United States. As part of the consolidation of facilities, the Company also recognized $0.5 million in employee severance and other disposal costs for the three and six months ended August 31, 2018, which were also classified within cost of sales in the consolidated statement of income. Financial Information About Geographical Areas The following table presents revenues by geographic region for each period (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: United States $ 188,278 $ 162,490 $ 401,834 $ 329,219 International 34,509 33,839 83,189 72,393 Total $ 222,787 $ 196,329 $ 485,023 $ 401,612 The following table presents fixed assets by geographic region for each period (in thousands): August 31, 2018 February 28, 2018 Property, plant and equipment, net: United States $ 187,983 $ 194,418 Canada 17,410 18,254 Other countries 4,011 4,183 Total $ 209,404 $ 216,855

Warranty Reserves

Warranty Reserves	6 Months Ended
	Aug. 31, 2018
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 other accrued liabilities on the consolidated balance sheets. 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 the changes in the warranty reserves for the six month period ended August 31, 2018 (in thousands): Warranty Reserve Balance at February 28, 2018 $ 2,013 Warranty costs incurred (1,179 ) Additions charged to income 1,221 Balance at August 31, 2018 $ 2,055

Debt

Debt	6 Months Ended
	Aug. 31, 2018
Debt [Abstract]
Long-term Debt [Text Block]	Debt The Company's debt consisted of the following for each of the periods presented (in thousands): August 31, 2018 February 28, 2018 2011 Senior Notes $ 125,000 $ 125,000 2008 Senior Notes — 14,286 2017 Revolving Credit Facility 171,000 162,000 Total debt 296,000 301,286 Unamortized debt issuance costs for Senior Notes (321 ) (391 ) Total debt, net 295,679 300,895 Less amount due within one year — (14,286 ) Debt due after one year, net $ 295,679 $ 286,609 On March 31, 2018, the Company made the final principal payment of $14.3 million to fully settle the 2008 Senior Notes on the scheduled maturity date.

Acquisitions

Acquisitions	6 Months Ended
	Aug. 31, 2018
Business Combinations [Abstract]
Business Combination Disclosure [Text Block]	Acquisitions On March 22, 2018, the Company purchased certain assets through a bankruptcy sales process from Lectrus Corporation, a privately-held corporation based in Chattanooga, Tennessee. Lectrus designs and manufactures custom metal enclosures and provides electrical and mechanical integration. The acquisition will complement AZZ's current metal enclosure and switchgear businesses. This acquisition was not significant. Accordingly, disclosures of the purchase price allocation and unaudited pro forma results of operations have not been provided.

Basis of Presentation (Policies

Basis of Presentation (Policies)	6 Months Ended
	Aug. 31, 2018
Accounting Policies [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. The Company is a global provider of metal coating services, welding solutions, specialty electrical equipment and highly engineered services to the power generation, transmission, distribution, refining and industrial markets. The Company has two distinct operating segments: the Energy segment and Metal Coatings segment. 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. AZZ Metal Coatings is a leading provider of metal finishing solutions for corrosion protection, including hot dip galvanizing to the North American steel fabrication industry. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2018 , 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, 2018 , 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, 2019 is referred to as fiscal 2019. 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, 2018 , the results of its operations for the three and six months ended August 31, 2018 and 2017 , and cash flows for the six months ended August 31, 2018 and 2017 . These interim results are not necessarily indicative of results for a full year.
New Accounting Pronouncements	Accounting Standards Recently Adopted On March 1, 2018, the Company adopted Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and the related amendments ("ASC 606") using the modified retrospective method applied to those contracts which were not completed as of February 28, 2018. Results for operating periods beginning on or after March 1, 2018 are presented under ASC 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the accounting standards in effect for those periods. However, for the three and six months ended August 31, 2018, the impact of applying ASC 606 as opposed to applying legacy accounting guidance did not result in a significant change to reported revenues or costs of revenues. Accordingly, no reconciliation has been provided to show the difference between applying ASC 606 and legacy guidance for the three and six months ended August 31, 2018 . In addition, there was no cumulative effect adjustment to the beginning retained earnings on March 1, 2018 related to the adoption. See Note 2 for a description of the Company's accounting policy resulting from the adoption of ASC 606. On March 1, 2018, the Company adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. The adoption did not have a material impact on the Company's consolidated statements of cash flows. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-02, Leases (Topic 842) . Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with current GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. This ASU will be effective for the Company in the first quarter of its fiscal year 2020 and early adoption is permitted. The ASU requires adoption based upon a modified retrospective transition approach. The Company has not yet determined whether it will elect early adoption and is currently evaluating the impact of the adoption of this standard to its consolidated financial statements and related disclosures. In particular, the Company has made progress in assessing its portfolio of leases for accounting and disclosure purposes. To address the new standard's requirements, the Company is also in the process of assessing the design of the future lease accounting procedures and related internal controls, selecting and implementing lease accounting software, and finalizing policies, including the election of any practical expedients permitted by the standard. While the Company has not yet completed its evaluation of the financial statement impact of the new lease accounting standard, the Company expects to recognize right of use assets and lease liabilities for its operating leases in its consolidated balance sheets upon adoption and thereafter.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Aug. 31, 2018
Accounting Policies [Abstract]
Revenue Recognition	Revenue recognition The Company determines revenue recognition through the following steps: 1) Identification of the contract with a customer, 2) Identification of the performance obligations in the contract, 3) Determination of the transaction price, 4) Allocation of the transaction price to performance obligations in the contract, and 5) Recognition of revenue when, or as, the Company satisfies a performance obligation Revenue is recognized when control of the promised goods or services is transferred to the Company’s customers, in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. The amount and timing of revenue recognition varies by segment based on the nature of the goods or services provided and the terms and conditions of the customer contract. Energy Segment AZZ's Energy segment is a provider of specialized products and services designed to support industrial, nuclear and electrical applications. Within this segment, the contract is governed by a customer purchase order and an executed product or services agreement. The contract generally specifies the delivery of what constitutes a single performance obligation consisting of either custom built products, custom services, or off-the-shelf products. When the Company does enter into an arrangement with multiple performance obligations, the transaction price is allocated to each performance obligation based on the relative standalone selling prices of the goods or services being provided to the customer and revenue is recognized upon the satisfaction of each performance obligation. The Company combines contracts for revenue recognition purposes that are executed with the same customer within a short timeframe from each other and that purport to be for a single commercial objective. For custom built products, the Company recognizes revenues over time provided that the goods do not have an alternative use to the Company and the Company has an unconditional right to payment for work completed to date plus a reasonable margin. For custom services, which consist of specialized welding and other professional services, the Company recognizes revenues over time as the services are rendered due to the fact that the services enhance a customer owned asset. For off-the-shelf products, which consist of tubing and lighting products, the Company recognizes revenue at a point-in-time upon the transfer of the goods to the customer. For services and custom built products, the Company recognizes revenues over time using a cost-to-cost input measure. This requires the Company to estimate the total contract revenues, costs and margin, which can involve significant management judgment. As a significant change in one or more of these estimates could affect the profitability of the Company’s contracts, management reviews and updates its contract related estimates regularly. The Company recognizes adjustments in estimated margin on contracts under a cumulative catch-up basis and subsequent revenues are recognized using the adjusted estimate. If the estimate of contract margin indicates an anticipated loss on the contract, the Company recognizes the total estimated loss in the period it is identified. Due to the custom nature of the goods and services provided, contracts within the Energy segment are often modified to account for changes in contract specifications and requirements. A contract modification exists when the modification either creates new, or changes the existing, enforceable rights and obligations in the contract. For the Company, most contract modifications are related to goods or services that are not distinct from those in the original contract due to the significant interrelationship or interdependencies between the deliverables. Such modifications are accounted for as if they were part of the original contract. As a result, the transaction price and the measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. In addition to fixed consideration, the Company’s contracts within its Energy segment can include variable consideration, including claims, incentive fees, liquidated damages or other penalties. The Company recognizes revenue for variable consideration when it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. The Company estimates the amount of revenue to be recognized on variable consideration using the expected value or the most likely amount method, whichever is expected to better predict the amount. Metal Coatings Segment AZZ’s Metal Coatings segment is a provider of hot dip galvanizing, powder coating and other metal coating applications to the steel fabrication industry. Within this segment, the contract is governed by a customer purchase order or work order. The contract generally specifies the delivery of what constitutes a single performance obligation consisting of metal coating services. The Company combines contracts for revenue recognition purposes that are executed with the same customer within a short timeframe from each other and that purport to be for a single commercial objective. The Company recognizes revenue over time as the metal coating is applied to the customer provided material as the process enhances a customer controlled asset. Contract modifications are rare within this segment and most contracts are on a fixed price basis with no variable consideration. Contract Assets and Liabilities The timing of revenue recognition, billings and cash collections results in accounts receivable, contract assets (unbilled receivables), and contract liabilities (customer advances and deposits) on the consolidated balance sheet, primarily related to the Company’s Energy segment. Amounts are billed as work progresses in accordance with agreed upon contractual terms, either at periodic intervals (e.g., weekly or monthly) or upon achievement of contractual milestones. Billing can occur subsequent to revenue recognition, resulting in contract assets. In addition, the Company can receive advances or deposits from its customers, before revenue is recognized, resulting in contract liabilities. These assets and liabilities are reported on the consolidated balance sheet on a contract-by-contract basis at the end of each reporting period. For the six months ended August 31, 2018 , the Company recognized $20.1 million of revenues from amounts that were included in contract liabilities at February 28, 2018. The Company did not record any revenues for the three or six months ended August 31, 2018 related to performance obligations satisfied in prior periods. The Company expects to recognize revenues of approximately $18.2 million , $4.1 million and $1.5 million in fiscal 2019 , 2020 and 2021 , respectively, related to the $23.8 million balance of contract liabilities as of August 31, 2018 . The increases or decreases in accounts receivable, contract assets and contract liabilities during the three and six months ended August 31, 2018 were due primarily to normal timing differences between the Company’s performance and customer payments. The Lectrus acquisition described in Note 8 had no impact on contract assets or liabilities as of the date of acquisition. Other No general rights of return exist for customers and the Company establishes provisions for estimated warranties. The Company generally does not sell extended warranties. Revenue is recognized net of applicable sales and other taxes. The Company does not adjust the contract price for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a good or service to a customer and when the customer pays for that good or service will be one year or less, which is generally the case. Sales commissions are deferred and recognized over the same period as the related revenues. Shipping and handling is treated as a fulfillment obligation instead of a separate performance obligation and such costs are expensed as incurred. Disaggregated Revenue Revenue by segment and geography is disclosed in Note 5. In addition, the following table presents disaggregated revenue by customer industry (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: Industrial - oil and gas, construction, and general* $ 120,305 $ 115,834 $ 271,613 $ 228,919 Transmission and distribution* 60,152 41,229 126,106 84,339 Power generation* 42,330 39,266 87,304 88,354 Total net sales $ 222,787 $ 196,329 $ 485,023 $ 401,612 * The Company revised its internal methodology for allocating revenues by customer industry during the three months ended August 31, 2018. All prior periods have been recast to conform to this revised methodology.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Aug. 31, 2018
Accounting Policies [Abstract]
Disaggregation of Revenue [Table Text Block]	Disaggregated Revenue Revenue by segment and geography is disclosed in Note 5. In addition, the following table presents disaggregated revenue by customer industry (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: Industrial - oil and gas, construction, and general* $ 120,305 $ 115,834 $ 271,613 $ 228,919 Transmission and distribution* 60,152 41,229 126,106 84,339 Power generation* 42,330 39,266 87,304 88,354 Total net sales $ 222,787 $ 196,329 $ 485,023 $ 401,612 * The Company revised its internal methodology for allocating revenues by customer industry during the three months ended August 31, 2018. All prior periods have been recast to conform to this revised methodology.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Aug. 31, 2018
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 (in thousands, expect per share data): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Numerator: Net income for basic and diluted earnings per common share $ 11,244 $ 9,786 $ 26,962 $ 21,848 Denominator: Denominator for basic earnings per common share–weighted average shares 26,019 25,970 26,001 25,991 Effect of dilutive securities: Employee and director stock awards 72 66 61 74 Denominator for diluted earnings per common share 26,091 26,036 26,062 26,065 Earnings per share basic and diluted: Basic earnings per common share $ 0.43 $ 0.38 $ 1.04 $ 0.84 Diluted earnings per common share $ 0.43 $ 0.38 $ 1.03 $ 0.84

Stock-based Compensation (Table

Stock-based Compensation (Tables)	6 Months Ended
	Aug. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation, Performance Shares Award Unvested Activity [Table Text Block]	non-vested performance share unit award activity for the six month period ended August 31, 2018 is as follows: Performance Weighted Non-vested balance as of February 28, 2018 70,030 $ 54.59 Granted 46,183 42.00 Vested (3,378 ) 46.65 Forfeited (29,710 ) 49.51 Non-vested balance as of August 31, 2018 83,125 $ 49.74
Restricted Stock Unit Awards Non-Vested	non-vested restricted stock unit award activity for the six month period ended August 31, 2018 is as follows: Restricted Stock Units Weighted Average Grant Date Fair Value Non-vested balance as of February 28, 2018 109,777 $ 56.62 Granted 82,371 42.00 Vested (37,670 ) 54.63 Forfeited (7,290 ) 55.27 Non-vested balance as of August 31, 2018 147,188 $ 49.01
Stock Appreciation Rights and Option Awards	A summary of the Company’s stock appreciation rights activity for the six month period ended August 31, 2018 is as follows: SARs Weighted Average Exercise Price Outstanding as of February 28, 2018 148,513 $ 43.29 Granted — — Exercised (43,928 ) 40.96 Forfeited — — Outstanding as of August 31, 2018 104,585 $ 44.27 Exercisable as of August 31, 2018 104,585 $ 44.27
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 (in thousands): Six Months Ended August 31, 2018 2017 Compensation expense $ 3,659 $ 3,400 Income tax benefits $ 823 $ 1,088

Segments (Tables)

Segments (Tables)	6 Months Ended
	Aug. 31, 2018
Segment Reporting Information [Line Items]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Net sales and operating income by segment for each period were as follows (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: Energy $ 106,515 $ 97,299 $ 253,501 $ 210,504 Metal Coatings 116,272 99,030 231,522 191,108 Total net sales $ 222,787 $ 196,329 $ 485,023 $ 401,612 Operating income (loss): Energy $ 4,273 $ 2,363 $ 14,231 $ 9,074 Metal Coatings 22,076 23,409 47,260 44,651 Corporate (9,244 ) (8,385 ) (20,690 ) (16,315 ) Total operating income $ 17,105 $ 17,387 $ 40,801 $ 37,410
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	Asset balances by segment for each period were as follows (in thousands): August 31, 2018 February 28, 2018 Total assets: Energy $ 574,230 $ 554,866 Metal Coatings 453,821 460,575 Corporate 9,973 12,768 Total $ 1,038,024 $ 1,028,209
Revenue from External Customers by Geographic Areas [Table Text Block]	The following table presents revenues by geographic region for each period (in thousands): Three Months Ended August 31, Six Months Ended August 31, 2018 2017 2018 2017 Net sales: United States $ 188,278 $ 162,490 $ 401,834 $ 329,219 International 34,509 33,839 83,189 72,393 Total $ 222,787 $ 196,329 $ 485,023 $ 401,612
Long-lived Assets by Geographic Areas [Table Text Block]	The following table presents fixed assets by geographic region for each period (in thousands): August 31, 2018 February 28, 2018 Property, plant and equipment, net: United States $ 187,983 $ 194,418 Canada 17,410 18,254 Other countries 4,011 4,183 Total $ 209,404 $ 216,855

Warranty Reserves (Tables)

Warranty Reserves (Tables)	6 Months Ended
	Aug. 31, 2018
Product Warranties Disclosures [Abstract]
Changes in the warranty reserves	The following table shows the changes in the warranty reserves for the six month period ended August 31, 2018 (in thousands): Warranty Reserve Balance at February 28, 2018 $ 2,013 Warranty costs incurred (1,179 ) Additions charged to income 1,221 Balance at August 31, 2018 $ 2,055

Debt (Tables)

Debt (Tables)	6 Months Ended
	Aug. 31, 2018
Debt [Abstract]
Schedule of Debt [Table Text Block]	The Company's debt consisted of the following for each of the periods presented (in thousands): August 31, 2018 February 28, 2018 2011 Senior Notes $ 125,000 $ 125,000 2008 Senior Notes — 14,286 2017 Revolving Credit Facility 171,000 162,000 Total debt 296,000 301,286 Unamortized debt issuance costs for Senior Notes (321 ) (391 ) Total debt, net 295,679 300,895 Less amount due within one year — (14,286 ) Debt due after one year, net $ 295,679 $ 286,609 On March 31, 2018, the Company made the final principal payment of $14.3 million to fully settle the 2008 Senior Notes on the scheduled maturity date.

Summary of Significant Accoun_4

Summary of Significant Accounting Policies Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Disaggregation of Revenue [Line Items]
Revenue, Net	$ 222,787	$ 196,329	$ 485,023	$ 401,612
Industrial [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	120,305	115,834	271,613	228,919
Trasmission & Distribution [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	60,152	41,229	126,106	84,339
Power Generation [Member]
Disaggregation of Revenue [Line Items]
Revenue, Net	$ 42,330	$ 39,266	$ 87,304	$ 88,354

Summary of Significant Accoun_5

Summary of Significant Accounting Policies Revenue Details (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Feb. 28, 2019	Aug. 31, 2018	Feb. 28, 2021	Feb. 28, 2020
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Contract with Customer, Liability, Revenue Recognized		$ 20
Future Revenues	$ 18.2		$ 1.5	$ 4.1
Revenue, Remaining Performance Obligation		$ 23.8

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, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017
Numerator:
Net income for basic and diluted earnings per common share	$ 11,244	$ 9,786	$ 26,962	$ 21,848
Denominator:
Denominator for basic earnings per common share-weighted average shares (shares)	26,019	25,970	26,001	25,991
Effect of dilutive securities:
Employee and Director stock awards (shares)	72	66	61	74
Denominator for diluted earnings per common share (shares)	26,091	26,036	26,062	26,065
Earnings per share basic and diluted:
Basic earnings per Common share (usd per share)	$ 0.43	$ 0.38	$ 1.04	$ 0.84
Diluted earnings per common share (usd per share)	$ 0.43	$ 0.38	$ 1.03	$ 0.84

Stock-based Compensation (Detai

Stock-based Compensation (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Aug. 31, 2018$ / 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 28, 2018 | shares	109,777
Granted (shares) | shares	82,371
Vested (shares) | shares	(37,670)
Forfeited (shares) | shares	(7,290)
Non-vested balance as of August 31, 2018 | shares	147,188
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, 2018 | $ / shares	$ 56.62
Granted, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	42
Vested, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	54.63
Forfeited, Weighted Average Grant Date Fair Value (usd per share) | $ / shares	55.27
Non-vested balance as of August 31, 2018 | $ / shares	$ 49.01

Stock-based Compensation (Det_2

Stock-based Compensation (Details 1) - Stock Appreciation Rights (SARs) [Member] - $ / shares	6 Months Ended
	Aug. 31, 2018	Feb. 28, 2018
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	104,585	148,513
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price	$ 44.27	$ 43.29
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments, Number of Shares [Roll Forward]
Granted (shares)	0
Exercised (shares)	(43,928)
Forfeited (shares)	0
Exercisable as of August 31, 2018	104,585
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)	40.96
Forfeited, Weighted Average Exercise Price (usd per share)	0
Exercisable as of August 31, 2018	$ 44.27

Stock-based Compensation (Det_3

Stock-based Compensation (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017
Share-based Compensation [Abstract]
Share-based Compensation	$ 3,659	$ 3,400
Share based compensation expense and related income tax benefits
Income tax benefits	$ 823	$ 1,088

Stock-based Compensation (Det_4

Stock-based Compensation (Details Textual)	6 Months Ended
	Aug. 31, 2018USD ($)share_based_compensation_plan$ / sharesshares	Feb. 28, 2018$ / 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)	1,248,775
Unrecognized compensation cost | $	$ 8,800,000
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	83,125	70,030
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 49.74	$ 54.59
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	46,183
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 42
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	(3,378)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares	$ 46.65
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period	(29,710)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares	$ 49.51
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	2 years 3 months 28 days
Outstanding Aggregate intrinsic value | $	$ 1,000,000
Average remaining contractual term	2 years 3 months 28 days
Aggregate remaining intrinsic value | $	$ 1,000,000
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	37,224

Segments (Details)

Segments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Aug. 31, 2018	Aug. 31, 2017	Aug. 31, 2018	Aug. 31, 2017	Feb. 28, 2018
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	$ 209,404		$ 209,404		$ 216,855
Operations and assets by segment
Net sales	222,787	$ 196,329	485,023	$ 401,612
Operating Income	17,105	17,387	40,801	37,410
Assets	1,038,024		1,038,024		1,028,209
Energy
Operations and assets by segment
Net sales	106,515	97,299	253,501	210,504
Operating Income	4,273	2,363	14,231	9,074
Assets	574,230		574,230		554,866
Metal Coatings
Operations and assets by segment
Net sales	116,272	99,030	231,522	191,108
Operating Income	22,076	23,409	47,260	44,651
Assets	453,821		453,821		460,575
Corporate
Operations and assets by segment
Operating Income	(9,244)	(8,385)	(20,690)	(16,315)
Corporate
Operations and assets by segment
Assets	9,973		9,973		12,768
UNITED STATES
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	187,983		187,983		194,418
Operations and assets by segment
Net sales	188,278	162,490	401,834	329,219
CANADA
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	17,410		17,410		18,254
Other Countries [Member]
Segment Reporting Information [Line Items]
Property, Plant and Equipment, Net	4,011		4,011		$ 4,183
International [Member]
Operations and assets by segment
Net sales	$ 34,509	$ 33,839	$ 83,189	$ 72,393

Warranty Reserves (Details)

Warranty Reserves (Details) $ in Thousands	6 Months Ended
	Aug. 31, 2018USD ($)
Movement in Standard Product Warranty Accrual [Roll Forward]
Opening Balance	$ 2,013
Warranty costs incurred	1,179
Closing Balance	2,055
Product Warranty Accrual, Warranties Issued	$ 1,221

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Aug. 31, 2018	Feb. 28, 2018
Debt Instrument [Line Items]
Long-term Debt	$ 295,679	$ 300,895
Long-term Debt, Gross	296,000	301,286
Unamortized Debt Issuance Expense	(321)	(391)
Debt, Current	0	(14,286)
Long-term Debt, Excluding Current Maturities	295,679	286,609
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	0	14,286
Line of Credit [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 171,000	$ 162,000