Cover Page
Cover Page - shares | 3 Months Ended | |
May 31, 2021 | Jun. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-12777 | |
Entity Registrant Name | AZZ Inc. | |
Entity Incorporation, State or Country Code | TX | |
Entity Tax Identification Number | 75-0948250 | |
Entity Address, Address Line One | One Museum Place, Suite 500 | |
Entity Address, Address Line Two | 3100 West 7th Street | |
Entity Address, City or Town | Fort Worth, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 76107 | |
City Area Code | 817 | |
Local Phone Number | 810-0095 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | AZZ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 25,071,582 | |
Entity Central Index Key | 0000008947 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --02-28 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2021 | Feb. 28, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 12,403 | $ 14,837 |
Accounts receivable (net of allowance for credit losses of $5,362 as of May 31, 2021 and $5,713 as of February 28, 2021) | 134,531 | 128,127 |
Inventories: | ||
Raw material | 92,283 | 86,913 |
Work-in-process | 6,214 | 4,453 |
Finished goods | 1,453 | 1,546 |
Contract assets | 71,185 | 58,056 |
Prepaid expenses and other | 11,211 | 5,876 |
Assets held for sale | 5,628 | 3,684 |
Total current assets | 334,908 | 303,492 |
Property, plant and equipment, net | 207,689 | 205,909 |
Operating lease right-of-use assets | 48,698 | 37,801 |
Goodwill | 354,839 | 353,881 |
Intangibles and other assets, net | 93,105 | 95,359 |
Total assets | 1,039,239 | 996,442 |
Current liabilities: | ||
Accounts payable | 48,831 | 41,034 |
Income tax payable | 4,778 | 0 |
Accrued salaries and wages | 16,614 | 22,606 |
Other accrued liabilities | 36,278 | 27,136 |
Customer deposits | 421 | 348 |
Contract liabilities | 17,098 | 16,138 |
Lease liability, short-term | 7,174 | 6,588 |
Total current liabilities | 131,194 | 113,850 |
Debt due after one year, net | 185,435 | 178,419 |
Lease liability, long-term | 40,702 | 32,629 |
Deferred income taxes | 38,467 | 39,283 |
Other long-term liabilities | 6,030 | 8,969 |
Total liabilities | 401,828 | 373,150 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Common stock, $1 par, shares authorized 100,000; 25,071 shares issued and outstanding at May 31, 2021 and 25,108 shares issued and outstanding at February 28, 2021 | 25,071 | 25,108 |
Capital in excess of par value | 75,600 | 75,979 |
Retained earnings | 559,173 | 547,289 |
Accumulated other comprehensive loss | (22,433) | (25,084) |
Total shareholders’ equity | 637,411 | 623,292 |
Total liabilities and shareholders' equity | $ 1,039,239 | $ 996,442 |
Condensed consolidated Balanc_2
Condensed consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2021 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 5,362 | $ 5,713 |
Common Stock, Par Value (usd per share) | $ 1 | $ 1 |
Common Stock, Shares Authorized (shares) | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued (shares) | 25,071,000 | 25,108,000 |
Common Stock, Shares, Outstanding (shares) | 25,071,000 | 25,108,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 229,826 | $ 213,293 |
Costs and Expenses | ||
Cost of sales | 171,899 | 171,085 |
Gross margin | 57,927 | 42,208 |
Selling, general and administrative | 27,215 | 27,890 |
Operating income | 30,712 | 14,318 |
Interest expense | 1,697 | 2,634 |
Other (income) expense, net | (969) | 1,456 |
Income before income taxes | 29,984 | 10,228 |
Income tax expense | 7,647 | 4,687 |
Net income | $ 22,337 | $ 5,541 |
Earnings Per Common Share | ||
Basic earnings per share (usd per share) | $ 0.89 | $ 0.21 |
Diluted earnings per share (usd per share) | 0.88 | 0.21 |
Cash dividends declared per common share (usd per share) | $ 0.17 | $ 0.17 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 22,337 | $ 5,541 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments, net of income tax of $0 | 2,581 | (1,039) |
Interest rate swap, net of income tax of $0 and $7, respectively | 0 | (14) |
Other comprehensive income (loss) | 2,581 | (1,053) |
Comprehensive income | $ 24,918 | $ 4,488 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustments, tax | $ 0 | $ 0 |
Interest rate swap, income tax | $ 0 | $ 7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Cash Flows From Operating Activities: | ||
Net income | $ 22,337 | $ 5,541 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Bad debt expense | (218) | 129 |
Amortization and depreciation | 11,084 | 11,668 |
Deferred income taxes | (892) | (2,147) |
Net (gain) loss on sale of property, plant and equipment | (15) | 40 |
Amortization of deferred borrowing costs | 139 | 135 |
Share-based compensation expense | 1,811 | 1,766 |
Effects of changes in assets and liabilities, net of acquisitions and dispositions: | ||
Accounts receivable | (7,966) | 8,721 |
Inventories | (8,254) | (4,449) |
Prepaid expenses and other | (5,419) | (941) |
Other assets | (778) | 123 |
Net change in contract assets and liabilities | (9,839) | 3,168 |
Accounts payable | 6,321 | (15,328) |
Other accrued liabilities and income taxes payable | 2,749 | (19,610) |
Net cash provided by (used in) operating activities | 11,060 | (11,184) |
Cash Flows Used For Investing Activities: | ||
Proceeds from sale of property, plant and equipment | 23 | 0 |
Purchase of property, plant and equipment | (7,489) | (10,847) |
Net cash used in investing activities | (7,466) | (10,847) |
Cash Flows From Financing Activities: | ||
Payments for taxes related to net share settlement of equity awards | (2,101) | (539) |
Proceeds from revolving loan | 35,000 | 76,000 |
Payments on revolving loan | (28,000) | (60,000) |
Repurchase and retirement of treasury stock | (6,264) | 0 |
Payments of dividends | (4,245) | (4,425) |
Net cash (used in) provided by financing activities | (5,610) | 11,036 |
Effect of exchange rate changes on cash | (418) | 722 |
Net decrease in cash and cash equivalents | (2,434) | (10,273) |
Cash and cash equivalents at beginning of period | 14,837 | 36,687 |
Cash and cash equivalents at end of period | 12,403 | 26,414 |
Supplemental disclosures | ||
Cash paid for interest | 394 | 869 |
Cash paid for income taxes | $ 1,322 | $ 11 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance (shares) at Feb. 29, 2020 | 26,148 | ||||
Balance at Feb. 29, 2020 | $ 634,366 | $ 26,148 | $ 66,703 | $ 572,414 | $ (30,899) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 1,766 | 1,766 | |||
Common stock issued under stock-based plans and related income tax expense (shares) | 47 | ||||
Common stock issued under stock-based plans and related income tax expense | (539) | $ 47 | (586) | ||
Cash dividends paid | (4,425) | (4,425) | |||
Net income | 5,541 | 5,541 | |||
Foreign currency translation | (1,039) | (1,039) | |||
Interest rate swap | (14) | (14) | |||
Balance (shares) at May. 31, 2020 | 26,195 | ||||
Balance at May. 31, 2020 | 635,656 | $ 26,195 | 67,883 | 573,530 | (31,952) |
Balance (shares) at Feb. 28, 2021 | 25,108 | ||||
Balance at Feb. 28, 2021 | 623,292 | $ 25,108 | 75,979 | 547,289 | (25,084) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation expense | 1,811 | 1,811 | |||
Common stock issued under stock-based plans and related income tax expense (shares) | 89 | ||||
Common stock issued under stock-based plans and related income tax expense | (2,101) | $ 89 | (2,190) | ||
Repurchase and retirement of treasury shares (shares) | 126 | ||||
Repurchase and retirement of treasury shares | (6,264) | $ (126) | (6,138) | ||
Cash dividends paid | (4,245) | (4,245) | |||
Net income | 22,337 | 22,337 | |||
Foreign currency translation | 2,581 | (70) | 2,651 | ||
Interest rate swap | 0 | ||||
Balance (shares) at May. 31, 2021 | 25,071 | ||||
Balance at May. 31, 2021 | $ 637,411 | $ 25,071 | $ 75,600 | $ 559,173 | $ (22,433) |
The Company and Basis of Presen
The Company and Basis of Presentation | 3 Months Ended |
May 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and 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 solutions, 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 Metal Coatings segment and the Infrastructure Solutions segment. AZZ Metal Coatings provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. AZZ Infrastructure Solutions 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 markets worldwide. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2021 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, 2021, included in the Company’s Annual Report on Form 10-K covering such period. Certain previously reported amounts have been reclassified to conform to current period presentation. The Company's 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 ending February 28, 2022 is referred to as fiscal 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position of the Company as of May 31, 2021, the results of its operations for the three months ended May 31, 2021 and 2020, and cash flows for the three months ended May 31, 2021 and 2020. The interim results reported herein are not necessarily indicative of results for a full year. Certain previously reported amounts have been reclassified to conform to current period presentation. Coronavirus (COVID-19) In March 2020, the World Health Organization declared the viral strain of coronavirus ("COVID-19") a global pandemic and recommended containment and mitigation measures worldwide. The spread of COVID-19 and the resulting economic contraction has resulted in increased business uncertainty. The Company continues to be impacted by the inability for its Infrastructure Solutions Industrial platform to access certain customer sites to perform services, temporary slow-downs in order placements in the Infrastructure Solutions Electrical platform, and increased costs associated with maintaining safe operations across the entire business. The Company has been able to remain open during the entirety of the pandemic to service its customers. The Company cannot reasonably estimate the length or severity of this pandemic, or the extent to which the disruption may materially impact its consolidated balance sheet, statements of operations or statements of cash flows for fiscal year 2022 or beyond. Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12") . This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in the application of ASC 740. The standard was effective for the Company in the first quarter of its fiscal 2022. The Company adopted ASU 2019-12 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020 and as clarified in January 2021, the FASB issued Accounting Standards Update No. (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective immediately for all entities. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date between March 12, 2020 and December 31, 2022. The Company adopted ASU 2020-04 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its financial condition, results of operations, and cash flows. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
May 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to the potential dilution that could occur if stock awards vested and were converted into common shares during the period. The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data): Three Months Ended May 31, 2021 2020 Numerator: Net income for basic and diluted earnings per common share $22,337 $5,541 Denominator: Denominator for basic earnings per common share–weighted average shares 25,051 26,157 Effect of dilutive securities: Employee and director equity awards 219 35 Denominator for diluted earnings per common share 25,270 26,192 Earnings per share basic and diluted: Basic income per common share $ 0.89 $ 0.21 Diluted income per common share $ 0.88 $ 0.21 For the three months ended May 31, 2021, 154,259 shares were excluded from the calculation of diluted EPS because the effect would be antidilutive. These shares could be dilutive in future periods. |
Sales
Sales | 3 Months Ended |
May 31, 2021 | |
Revenues [Abstract] | |
Sales | Sales Disaggregated Sales The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended May 31, 2021 2020 Sales: Industrial $ 153,983 $ 130,109 Transmission and distribution 43,667 49,057 Power generation 32,176 34,127 Total sales $ 229,826 $ 213,293 See Note 4 for sales information by segment. Contract Liabilities The following table shows the changes in contract liabilities for the three months ended May 31, 2021 and 2020, respectively (in thousands): 2021 2020 Balance at February 28/29, $ 16,138 $ 18,418 Contract liabilities added during the period 12,375 4,796 Sales recognized during the period (11,415) (5,849) Balance at May 31, $ 17,098 $ 17,365 The Company did not record any sales for the three months ended May 31, 2021 or 2020 related to performance obligations satisfied in prior periods. The increases or decreases in accounts receivable, contract assets, and contract liabilities during the three months ended May 31, 2021 and 2020 were due primarily to normal timing differences between the Company’s performance and customer payments in fiscal 2021. The Company expects to recognize sales, related to the $17.1 million balance of contract liabilities as of May 31, 2021 of approximately $12.1 million, $4.7 million, $0.2 million and $0.1 million in fiscal 2022, 2023, 2024 and 2025, respectively. |
Segments
Segments | 3 Months Ended |
May 31, 2021 | |
Segment Reporting [Abstract] | |
Segments | Operating Segments Segment Information The Company has two distinct operating segments: the Metal Coatings segment and the Infrastructure Solutions segment. The Metal Coatings segment provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. Hot dip galvanizing is a metallurgical process in which molten zinc reacts to steel. The zinc alloying provides corrosion protection to fabricated steel for extended periods of up to 50 years. The Infrastructure Solutions segment provides specialized products and services designed to support primarily industrial and electrical applications. The product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting and tubular products. The Infrastructure Solutions segment also focuses on life-cycle extension for the power generation, refining and industrial infrastructure, through providing automated weld overlay solutions for corrosion and erosion mitigation. Sales and operating income by segment for each period were as follows (in thousands): Three Months Ended May 31, 2021 2020 Sales: Metal Coatings $ 127,735 $ 118,991 Infrastructure Solutions 102,091 94,302 Total sales $ 229,826 $ 213,293 Operating income: Metal Coatings $ 31,576 $ 25,085 Infrastructure Solutions 9,624 (1,048) Corporate (10,488) (9,719) Total operating income $ 30,712 $ 14,318 Asset balances by segment for each period were as follows (in thousands): May 31, 2021 February 28, 2021 Total assets: Metal Coatings $ 490,326 $ 480,778 Infrastructure Solutions 521,428 489,986 Corporate 27,485 25,678 Total $ 1,039,239 $ 996,442 Financial Information About Geographical Areas The following table presents sales by geographic region for each period (dollars in thousands): Three Months Ended May 31, 2021 2020 Sales: United States $ 191,116 $ 190,842 International 38,710 22,451 Total $ 229,826 $ 213,293 The following table presents fixed assets by geographic region for each period (dollars in thousands): May 31, 2021 February 28, 2021 Property, plant and equipment, net: United States $ 180,004 $ 180,718 Canada 14,953 15,007 Other countries 12,732 10,184 Total $ 207,689 $ 205,909 |
Warranty Reserves
Warranty Reserves | 3 Months Ended |
May 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserves | Warranty Reserves A reserve has been established to provide for the estimated future cost of warranties on certain delivered products. The warranty accrual is included in "Other accrued liabilities" on the condensed consolidated balance sheets. Management monitors established reserves and adjusts warranty estimates based upon the progression of resolution activities with the Company's customers. Warranties typically cover non-conformance to customer specifications or defects in material and workmanship. The following table shows the changes in the warranty reserves for the three months ended May 31, 2021 (dollars in thousands): Balance at February 28, 2021 $ 4,079 Warranty costs incurred (112) Additions charged to income 170 Balance at May 31, 2021 $ 4,137 |
Debt
Debt | 3 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The Company's debt consisted of the following for each of the periods presented (dollars in thousands): May 31, 2021 February 28, 2021 2017 Revolving Credit Facility $ 36,000 $ 29,000 2020 Senior Notes 150,000 150,000 Total debt, gross 186,000 179,000 Unamortized debt issuance costs (565) (581) Total debt, net 185,435 178,419 Less amount due within one year — — Debt due after one year, net $ 185,435 $ 178,419 The Company's debt agreements require the Company to maintain certain financial ratios, of which the most restrictive is a debt to EBITDA leverage ratio of at least 3.25 to 1.00. As of May 31, 2021, the Company was in compliance with all covenants or other requirements set forth in the debt agreements. |
Leases
Leases | 3 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company is a lessee under various operating leases for facilities and equipment. Supplemental information related to the Company's portfolio of operating leases was as follows (dollars in thousands): Three Months Ended May 31, 2021 2020 Operating cash flows from operating leases included in lease liabilities $ 2,299 $ 2,119 Lease liabilities obtained from new ROU assets - operating 12,661 204 Weighted-average remaining lease term - operating leases (years) 8.4 7.6 Weighted-average discount rate - operating leases 4.6 % 5.0 % Operating and financing cash flows from financing leases included in lease liabilities 18 — Lease liabilities obtained from new ROU assets - financing — — Weighted-average remaining lease term - financing leases (years) 4.3 — Weighted-average discount rate - financing leases 4.3 % — % The following table outlines the classification of lease expense in the statements of income (dollars in thousands): Three Months Ended May 31, 2021 2020 Cost of sales $ 2,546 $ 3,225 Selling, general and administrative 1,130 1,249 Total lease expense $ 3,676 $ 4,474 As of May 31, 2021, maturities of the Company's lease liabilities were as follows (dollars in thousands): Fiscal year: Operating Leases Finance Leases Total 2022 (remaining 9 months) $ 6,896 $ 53 $ 6,949 2023 8,709 71 8,780 2024 7,818 71 7,889 2025 6,777 68 6,845 2026 5,330 14 5,344 Thereafter 21,962 — 21,962 Total lease payments 57,492 277 57,769 Less imputed interest (9,872) (21) (9,893) Total $ 47,620 $ 256 $ 47,876 |
Income Taxes
Income Taxes | 3 Months Ended |
May 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. With respect to the CARES Act, the Company benefited from the deferral of certain payroll taxes through the end of calendar year 2020 and the technical correction with respect to qualified improvement property.The provision for income taxes reflects an effective tax rate of 25.5% for the three months ended May 31, 2021, as compared to 45.8% for the respective prior year comparable period. The decrease in the effective tax rate was primarily attributable to the unfavorable impact of COVID-19 on book earnings in the prior year quarter compared to the current quarter ended May 31, 2021. The Company recorded discrete items in the first quarter of the prior year and the current year; however, since book income was significantly lower in the prior year, the effective tax rate was impacted more significantly by the discrete items. |
Equity
Equity | 3 Months Ended |
May 31, 2021 | |
Equity [Abstract] | |
Equity | EquityOn November 10, 2020, the Company's Board of Directors authorized a $100 million share repurchase program pursuant to which the Company may repurchase its Common Stock (the “2020 Share Authorization”). Repurchases under the 2020 Share Authorization will be made through open market and/or private transactions, in accordance with applicable federal securities laws, and could include repurchases pursuant to Rule 10b5-1 trading plans, which allows stock repurchases when the Company might otherwise be precluded from doing so. During the three months ended May 31, 2021, the Company repurchased 125,770 of its common shares in the amount of $6.3 million at an average purchase price of $49.80 under the 2020 Share Authorization. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
May 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale The Company has been executing a plan to divest certain non-core businesses. The strategic decision to divest of these businesses reflects the Company's long-term strategy to become a more focused metal coatings company . The historical annual sales, operating profit and net assets of these businesses were not significant enough to qualify as discontinued operations. Assets and liabilities allocated to the disposal group are as follows: As of May 31, 2021 Assets Accounts receivable $ 4,715 Inventories 2,600 Contract assets 2,204 Other current assets 186 Property, plant and equipment 1,348 Other assets 43 Goodwill 1,693 Liabilities Accounts payable 856 Contract liabilities 1,926 Other accrued liabilities 877 Lease liability – long term 12 Total carrying value 9,118 Less: Impairment of carrying value of remaining assets held for sale to estimated sales price (3,490) Fair value of disposal group $ 5,628 |
Commitment and Contingencies
Commitment and Contingencies | 3 Months Ended |
May 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesLegalThe Company and its subsidiaries are named defendants and plaintiffs in various routine lawsuits incidental to our business. These proceedings include labor and employment claims, use of the Company’s intellectual property, worker’s compensation, environmental matters, and various commercial disputes, all arising in the normal course of business. As discovery progresses on all outstanding legal matters, the Company will continue to evaluate opportunities to either settle the disputes for nuisance value or potentially enter into mediation as a way to resolve the disputes prior to trial. As the pending cases progress through additional discovery and potential mediation, our assessment of the likelihood of an unfavorable outcome on the pending lawsuits may change. Although the outcome of these lawsuits or other proceedings cannot be predicted with certainty, and the amount of any potential liability that could arise with respect to such lawsuits or other matters cannot be predicted at this time, management, after consultation with legal counsel believes it has strong defenses to all of these matters and does not expect liabilities, if any, from these claims or proceedings, either individually or in the aggregate, to have a material effect on the Company’s financial position, results of operations or cash flows. |
Subsequent Event
Subsequent Event | 3 Months Ended |
May 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On July 8, 2021, the Company refinanced its current un-secured revolving credit facility, which was scheduled to mature in March 2022, with a new five-year un-secured revolving credit facility under that certain credit agreement, dated July 8, 2021 by and among the Company, borrower, Citibank, N.A., as administrative agent and the other agents and lender parties thereto (the “2021 Credit Agreement”). The 2021 Credit Agreement matures in July 2026 and includes the following significant terms; i. provides for a senior un-secured revolving credit facility with a principal amount of up to $400.0 million revolving loan commitments, and includes an additional $200.0 million uncommitted incremental accordion facility, ii. interest rate margin ranges from 87.5 bps to 175 bps for Eurodollar Rate loans, and from 0.0 bps to 75 bps for Base Rate loans, depending on leverage ratio of the Company and its consolidated subsidiaries as a group, iii. includes a letter of credit sub-facility up to $85.0 million for the issuance of standby and commercial letters of credit, iv. includes a $50.0 million sublimit for swing line loans, v. includes customary representations and warranties, affirmative covenants and negative covenants, and events of default, including restrictions on incurrence of non-ordinary course debt, investment and dividends, subject to various exceptions, carve-outs and baskets, and vi. includes a maximum leverage ratio financial covenant and an interest coverage ratio financial covenant, each to be tested at quarter end. The proceeds of the loans under the 2021 Credit Agreement will be used primarily to finance working capital needs, capital improvements, dividends, future acquisitions and general corporate purposes. The foregoing summary of certain terms and provisions of the 2021 Credit Agreement does not purport to be complete and is qualified in its entirety by reference to the 2021 Credit Agreement, a copy of which is attached hereto as Exhibit 10.3 to this Form 10-Q and is incorporated herein by reference. . |
The Company and Basis of Pres_2
The Company and Basis of Presentation (Policies) | 3 Months Ended |
May 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company and 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 solutions, 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 Metal Coatings segment and the Infrastructure Solutions segment. AZZ Metal Coatings provides hot dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. AZZ Infrastructure Solutions 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 markets worldwide. Presentation The accompanying condensed consolidated balance sheet as of February 28, 2021 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, 2021, included in the Company’s Annual Report on Form 10-K covering such period. Certain previously reported amounts have been reclassified to conform to current period presentation. The Company's 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 ending February 28, 2022 is referred to as fiscal 2022. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, which are necessary to present fairly the financial position of the Company as of May 31, 2021, the results of its operations for the three months ended May 31, 2021 and 2020, and cash flows for the three months ended May 31, 2021 and 2020. The interim results reported herein are not necessarily indicative of results for a full year. Certain previously reported amounts have been reclassified to conform to current period presentation. |
Recently Adopted Accounting Pronouncements And Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes ("ASU 2019-12") . This standard is intended to simplify the accounting and disclosure requirements for income taxes by eliminating various exceptions in accounting for income taxes as well as clarifying and amending existing guidance to improve consistency in the application of ASC 740. The standard was effective for the Company in the first quarter of its fiscal 2022. The Company adopted ASU 2019-12 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020 and as clarified in January 2021, the FASB issued Accounting Standards Update No. (“ASU”) 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (“ASU 2020-04”), which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. The amendments are effective immediately for all entities. An entity may elect to apply the amendments on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or on a prospective basis to new modifications from any date between March 12, 2020 and December 31, 2022. The Company adopted ASU 2020-04 in the first quarter of fiscal 2022 and the adoption did not have a material impact on its financial condition, results of operations, and cash flows. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
May 31, 2021 | |
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, except per share data): Three Months Ended May 31, 2021 2020 Numerator: Net income for basic and diluted earnings per common share $22,337 $5,541 Denominator: Denominator for basic earnings per common share–weighted average shares 25,051 26,157 Effect of dilutive securities: Employee and director equity awards 219 35 Denominator for diluted earnings per common share 25,270 26,192 Earnings per share basic and diluted: Basic income per common share $ 0.89 $ 0.21 Diluted income per common share $ 0.88 $ 0.21 |
Sales (Tables)
Sales (Tables) | 3 Months Ended |
May 31, 2021 | |
Revenues [Abstract] | |
Disaggregation of Revenue | Disaggregated Sales The following table presents disaggregated sales by customer industry (in thousands): Three Months Ended May 31, 2021 2020 Sales: Industrial $ 153,983 $ 130,109 Transmission and distribution 43,667 49,057 Power generation 32,176 34,127 Total sales $ 229,826 $ 213,293 |
Contract with Customer, Asset and Liability | The following table shows the changes in contract liabilities for the three months ended May 31, 2021 and 2020, respectively (in thousands): 2021 2020 Balance at February 28/29, $ 16,138 $ 18,418 Contract liabilities added during the period 12,375 4,796 Sales recognized during the period (11,415) (5,849) Balance at May 31, $ 17,098 $ 17,365 |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
May 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Sales and operating income by segment for each period were as follows (in thousands): Three Months Ended May 31, 2021 2020 Sales: Metal Coatings $ 127,735 $ 118,991 Infrastructure Solutions 102,091 94,302 Total sales $ 229,826 $ 213,293 Operating income: Metal Coatings $ 31,576 $ 25,085 Infrastructure Solutions 9,624 (1,048) Corporate (10,488) (9,719) Total operating income $ 30,712 $ 14,318 |
Reconciliation of Assets from Segment to Consolidated | Asset balances by segment for each period were as follows (in thousands): May 31, 2021 February 28, 2021 Total assets: Metal Coatings $ 490,326 $ 480,778 Infrastructure Solutions 521,428 489,986 Corporate 27,485 25,678 Total $ 1,039,239 $ 996,442 |
Revenue from External Customers by Geographic Areas | The following table presents sales by geographic region for each period (dollars in thousands): Three Months Ended May 31, 2021 2020 Sales: United States $ 191,116 $ 190,842 International 38,710 22,451 Total $ 229,826 $ 213,293 |
Long-lived Assets by Geographic Areas | The following table presents fixed assets by geographic region for each period (dollars in thousands): May 31, 2021 February 28, 2021 Property, plant and equipment, net: United States $ 180,004 $ 180,718 Canada 14,953 15,007 Other countries 12,732 10,184 Total $ 207,689 $ 205,909 |
Warranty Reserves (Tables)
Warranty Reserves (Tables) | 3 Months Ended |
May 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Changes in the warranty reserves | The following table shows the changes in the warranty reserves for the three months ended May 31, 2021 (dollars in thousands): Balance at February 28, 2021 $ 4,079 Warranty costs incurred (112) Additions charged to income 170 Balance at May 31, 2021 $ 4,137 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
May 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company's debt consisted of the following for each of the periods presented (dollars in thousands): May 31, 2021 February 28, 2021 2017 Revolving Credit Facility $ 36,000 $ 29,000 2020 Senior Notes 150,000 150,000 Total debt, gross 186,000 179,000 Unamortized debt issuance costs (565) (581) Total debt, net 185,435 178,419 Less amount due within one year — — Debt due after one year, net $ 185,435 $ 178,419 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
May 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | Supplemental information related to the Company's portfolio of operating leases was as follows (dollars in thousands): Three Months Ended May 31, 2021 2020 Operating cash flows from operating leases included in lease liabilities $ 2,299 $ 2,119 Lease liabilities obtained from new ROU assets - operating 12,661 204 Weighted-average remaining lease term - operating leases (years) 8.4 7.6 Weighted-average discount rate - operating leases 4.6 % 5.0 % Operating and financing cash flows from financing leases included in lease liabilities 18 — Lease liabilities obtained from new ROU assets - financing — — Weighted-average remaining lease term - financing leases (years) 4.3 — Weighted-average discount rate - financing leases 4.3 % — % The following table outlines the classification of lease expense in the statements of income (dollars in thousands): Three Months Ended May 31, 2021 2020 Cost of sales $ 2,546 $ 3,225 Selling, general and administrative 1,130 1,249 Total lease expense $ 3,676 $ 4,474 |
Lessee, Operating Lease, Liability, Maturity | As of May 31, 2021, maturities of the Company's lease liabilities were as follows (dollars in thousands): Fiscal year: Operating Leases Finance Leases Total 2022 (remaining 9 months) $ 6,896 $ 53 $ 6,949 2023 8,709 71 8,780 2024 7,818 71 7,889 2025 6,777 68 6,845 2026 5,330 14 5,344 Thereafter 21,962 — 21,962 Total lease payments 57,492 277 57,769 Less imputed interest (9,872) (21) (9,893) Total $ 47,620 $ 256 $ 47,876 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 3 Months Ended |
May 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | Assets and liabilities allocated to the disposal group are as follows: As of May 31, 2021 Assets Accounts receivable $ 4,715 Inventories 2,600 Contract assets 2,204 Other current assets 186 Property, plant and equipment 1,348 Other assets 43 Goodwill 1,693 Liabilities Accounts payable 856 Contract liabilities 1,926 Other accrued liabilities 877 Lease liability – long term 12 Total carrying value 9,118 Less: Impairment of carrying value of remaining assets held for sale to estimated sales price (3,490) Fair value of disposal group $ 5,628 |
The Company and Basis of Pres_3
The Company and Basis of Presentation (Details) | 3 Months Ended |
May 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of operating segments | 2 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Numerator: | ||
Net income for basic and diluted earnings per common share | $ 22,337 | $ 5,541 |
Denominator: | ||
Denominator for basic earnings per common share-weighted average shares (shares) | 25,051 | 26,157 |
Effect of dilutive securities: | ||
Employee and Director stock awards (shares) | 219 | 35 |
Denominator for diluted earnings per common share (shares) | 25,270 | 26,192 |
Earnings per share basic and diluted: | ||
Basic earnings per common share (usd per share) | $ 0.89 | $ 0.21 |
Diluted earnings per common share (usd per share) | $ 0.88 | $ 0.21 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) shares in Thousands | 3 Months Ended |
May 31, 2021shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 154,259 |
Sales Disaggregated Revenues (D
Sales Disaggregated Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 229,826 | $ 213,293 |
Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 153,983 | 130,109 |
Transmission and distribution | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 43,667 | 49,057 |
Power generation | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 32,176 | $ 34,127 |
Sales Contract Liability (Detai
Sales Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Movement In Contract With Customer, Liability [Roll Forward] | ||
Balance at February 28/29, | $ 16,138 | $ 18,418 |
Contract liabilities added during the period | 12,375 | 4,796 |
Sales recognized during the period | (11,415) | (5,849) |
Balance at May 31, | $ 17,098 | $ 17,365 |
Sales Future Revenues (Details)
Sales Future Revenues (Details) - USD ($) $ in Thousands | May 31, 2021 | Feb. 28, 2021 | May 31, 2020 | Feb. 29, 2020 |
Revenues [Abstract] | ||||
Contract liabilities | $ 17,098 | $ 16,138 | $ 17,365 | $ 18,418 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 12,100 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 4,700 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 200 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-06-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 100 | |||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Segments (Details)
Segments (Details) $ in Thousands | 3 Months Ended | ||
May 31, 2021USD ($)segment | May 31, 2020USD ($) | Feb. 28, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | segment | 2 | ||
Operations and assets by segment | |||
Revenues | $ 229,826 | $ 213,293 | |
Operating income: | 30,712 | 14,318 | |
Total assets: | 1,039,239 | $ 996,442 | |
Property, plant and equipment, net | 207,689 | 205,909 | |
United States | |||
Operations and assets by segment | |||
Revenues | 191,116 | 190,842 | |
Property, plant and equipment, net | 180,004 | 180,718 | |
International | |||
Operations and assets by segment | |||
Revenues | 38,710 | 22,451 | |
Canada | |||
Operations and assets by segment | |||
Property, plant and equipment, net | 14,953 | 15,007 | |
Other countries | |||
Operations and assets by segment | |||
Property, plant and equipment, net | 12,732 | 10,184 | |
Corporate | |||
Operations and assets by segment | |||
Operating income: | (10,488) | (9,719) | |
Total assets: | 27,485 | 25,678 | |
Metal Coatings | Operating Segments | |||
Operations and assets by segment | |||
Revenues | 127,735 | 118,991 | |
Operating income: | 31,576 | 25,085 | |
Total assets: | 490,326 | 480,778 | |
Infrastructure Solutions | Operating Segments | |||
Operations and assets by segment | |||
Revenues | 102,091 | 94,302 | |
Operating income: | 9,624 | $ (1,048) | |
Total assets: | $ 521,428 | $ 489,986 |
Warranty Reserves (Details)
Warranty Reserves (Details) $ in Thousands | 3 Months Ended |
May 31, 2021USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
Opening Balance | $ 4,079 |
Warranty costs incurred | (112) |
Additions charged to income | 170 |
Closing Balance | $ 4,137 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | May 31, 2021 | Feb. 28, 2021 |
Debt Instrument [Line Items] | ||
Total debt, gross | $ 186,000 | $ 179,000 |
Unamortized debt issuance costs | (565) | (581) |
Total debt, net | 185,435 | 178,419 |
Debt due within one year | 0 | 0 |
Debt due after one year, net | 185,435 | 178,419 |
Senior Notes | 2020 Senior Notes | ||
Debt Instrument [Line Items] | ||
Total debt, gross | 150,000 | 150,000 |
Revolving Credit Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt, gross | $ 36,000 | $ 29,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended |
May 31, 2021 | |
Senior Notes | Line of Credit | |
Debt Instrument [Line Items] | |
Covenant, maximum leverage ratio | 3.25 |
Leases - Lease Information (Det
Leases - Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases included in lease liabilities | $ 2,299 | $ 2,119 |
Lease liabilities obtained from new ROU assets - operating | $ 12,661 | $ 204 |
Weighted-average remaining lease term - operating leases (years) | 8 years 4 months 24 days | 7 years 7 months 6 days |
Weighted-average discount rate - operating leases | 4.60% | 5.00% |
Operating and financing cash flows from financing leases included in lease liabilities | $ 18 | |
Lease liabilities obtained from new ROU assets - financing | $ 0 | |
Weighted-average remaining lease term - financing leases (years) | 4 years 3 months 18 days | |
Weighted-average discount rate - financing leases | 4.30% |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Total lease expense | $ 3,676 | $ 4,474 |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Total lease expense | 2,546 | 3,225 |
Selling, general and administrative | ||
Lessee, Lease, Description [Line Items] | ||
Total lease expense | $ 1,130 | $ 1,249 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | May 31, 2021USD ($) |
Operating Leases | |
2022 (remaining 9 months) | $ 6,896 |
2023 | 8,709 |
2024 | 7,818 |
2025 | 6,777 |
2026 | 5,330 |
Thereafter | 21,962 |
Total lease payments | 57,492 |
Less imputed interest | (9,872) |
Total | 47,620 |
Finance Leases | |
2022 (remaining 9 months) | 53 |
2023 | 71 |
2024 | 71 |
2025 | 68 |
2026 | 14 |
Thereafter | 0 |
Total lease payments | 277 |
Less imputed interest | (21) |
Total | 256 |
2022 (remaining 9 months) | 6,949 |
2023 | 8,780 |
2024 | 7,889 |
2025 | 6,845 |
2026 | 5,344 |
Thereafter | 21,962 |
Total lease payments | 57,769 |
Less imputed interest | (9,893) |
Total | $ 47,876 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
May 31, 2021 | May 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (percent) | 25.50% | 45.80% |
Equity (Details)
Equity (Details) - 2020 Share Repurchase Program - USD ($) | 3 Months Ended | |
May 31, 2021 | Nov. 10, 2020 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchase program authorized amount | $ 100,000,000 | |
Repurchase of common stock (in shares) | 125,770 | |
Repurchase of common stock, value | $ 6,300,000 | |
Shares repurchased, average price per share (in usd per share) | $ 49.80 |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations $ in Thousands | 3 Months Ended |
May 31, 2021USD ($) | |
Assets | |
Accounts receivable | $ 4,715 |
Inventories | 2,600 |
Contract assets | 2,204 |
Other current assets | 186 |
Property, plant and equipment | 1,348 |
Other assets | 43 |
Goodwill | 1,693 |
Liabilities | |
Accounts payable | 856 |
Contract liabilities | 1,926 |
Other accrued liabilities | 877 |
Lease liability – long term | 12 |
Total carrying value | 9,118 |
Less: Impairment of carrying value of remaining assets held for sale to estimated sales price | (3,490) |
Fair value of disposal group | $ 5,628 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ in Millions | Jul. 08, 2021USD ($) |
Minimum | Eurodollar | |
Subsequent Event [Line Items] | |
Line of credit facility, interest rate | 0.875% |
Minimum | Base Rate | |
Subsequent Event [Line Items] | |
Line of credit facility, interest rate | 0.00% |
Maximum | Eurodollar | |
Subsequent Event [Line Items] | |
Line of credit facility, interest rate | 1.75% |
Maximum | Base Rate | |
Subsequent Event [Line Items] | |
Line of credit facility, interest rate | 0.75% |
Revolving Credit Facility | 2021 Credit Agreement | |
Subsequent Event [Line Items] | |
Maximum borrowing capacity | $ 400 |
Accordion feature | 200 |
Standby And Commercial Letters Of Credit | 2021 Credit Agreement | |
Subsequent Event [Line Items] | |
Accordion feature | 85 |
Swing Line Loan | 2021 Credit Agreement | |
Subsequent Event [Line Items] | |
Accordion feature | $ 50 |