Exhibit 99.7
Unaudited Financial and Other Statistical Information for the Three and Six-Month
Periods Ended August 31, 2004, and Guidance for Fiscal Year 2005
AZZ incorporated
Condensed Consolidated Statements of Income
(unaudited)
($ in Thousands except per share amount)
Three Months Ended August 31, 2004 | Six Months Ended August 31, 2004 | |||||
Net Sales | $ | 36,510,459 | $ | 76,203,956 | ||
Costs and Expenses: | ||||||
Cost of sales | 30,001,809 | 62,498,144 | ||||
Selling, general and administrative | 4,629,767 | 9,379,525 | ||||
Interest expense | 428,057 | 870,174 | ||||
Other expense, net | 10,614 | 38,532 | ||||
| $ | 35,070,247 | $ | 72,786,375 | |||
Income before income taxes | 1,440,212 | 3,417,581 | ||||
Income tax expense | 532,400 | 1,264,468 | ||||
Net income | $ | 907,812 | $ | 2,153,113 | ||
Earnings per share: | ||||||
Basic | $ | 0.17 | $ | 0.40 | ||
Diluted | $ | 0.16 | $ | 0.39 | ||
AZZ incorporated
Condensed Consolidated Balance Sheet
(unaudited)
($ in Thousands)
Period Ended August 31, 2004 | |||
Assets: | |||
Current assets: | |||
Cash and cash equivalents | $ | 1,257,353 | |
Accounts receivable, net of allowance for doubtful accounts | 21,998,505 | ||
Inventories | 17,135,643 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | 1,911,263 | ||
Deferred income taxes | 1,648,050 | ||
Prepaid expenses and other | 621,514 | ||
Total current assets | 44,572,327 | ||
Net property, plant, and equipment | 34,932,276 | ||
Goodwill, less accumulated amortization | 40,962,104 | ||
Other Assets | 1,387,843 | ||
| $ | 121,854,550 | ||
Liabilities and Shareholders’ Equity: | |||
Current liabilities: | |||
Accounts payable | $ | 11,588,893 | |
Accrued liabilities | 7,785,473 | ||
Long-term debt due within one year | 5,500,000 | ||
Total current liabilities | 24,874,366 | ||
Long-term debt due after one year | 23,125,000 | ||
Deferred income taxes | 1.939,580 | ||
Shareholders’ equity | 71,915,605 | ||
| $ | 121,854,550 | ||
2
AZZ incorporated
Condensed Consolidated Statement of Cash Flows
(unaudited)
($ in Thousands)
Period Ended August 31, 2004 | ||||
Net cash provide by operating activities | $ | 5,384,934 | ||
Net cash used in investing activities | (3,492,898 | ) | ||
Net cash provided by (used in) financing activities | (2,079,665 | ) | ||
Net decrease in cash and cash equivalents | (187,629 | ) | ||
Cash and cash equivalents at beginning of year | 1,444,982 | |||
Cash and cash equivalents at end of year | $ | 1,257,353 | ||
3
AZZ incorporated
Financial and Other Statistical Information
(unaudited)
($ in Thousands)
Information regarding operations and assets by segment is as follows:
| Three Months Ended August 31, 2004 | Six Months Ended August 31, 2004 | |||||
Net sales: | ||||||
Electrical and Industrial Products | $ | 23,435 | $ | 51,045 | ||
Galvanizing Services | 13,076 | 25,159 | ||||
| $ | 36,511 | $ | 76,204 | |||
Operating income (a): | ||||||
Electrical and Industrial Products | $ | 1,319 | $ | 3,231 | ||
Galvanizing Services | 2,386 | 4,725 | ||||
| $ | 3,705 | $ | 7,956 | |||
General corporate expenses | $ | 1,810 | $ | 3,612 | ||
Interest expense | 429 | 870 | ||||
Other (income) expense, net (b) | 26 | 56 | ||||
| $ | 2,265 | $ | 4,538 | |||
Income before income taxes | $ | 1,440 | $ | 3,418 | ||
Total assets: | ||||||
Electrical and Industrial Products | $ | 73,203 | $ | 73,203 | ||
Galvanizing Services | 43,869 | 43,869 | ||||
Corporate | 4,783 | 4,783 | ||||
| $ | 121,855 | $ | 121,855 | |||
| (a) | Operating income consists of net sales less cost of sales, specifically identifiable general and administrative expenses and specifically identifiable selling expenses. |
| (b) | Other (income) expense, net includes gains and losses on sale of property, plant and equipment and other (income) expense not specifically identifiable to a segment. |
4
AZZ incorporated
Financial and Other Statistical Information
(unaudited)
($ in Thousand except per share amount)
Actual Quarter Ended August 31, 2004 | Actual Year to Date August 31, 2004 | Projected Year Ended Feb. 28, 2005 | ||||||||
Net Sales: | ||||||||||
Electrical and Industrial Products | $ | 23,435 | $ | 51,045 | $94,000 to $101,000 | |||||
Galvanizing Services | $ | 13,076 | $ | 25,159 | $46,000 to $49,000 | |||||
Total Sales | $ | 36,511 | $ | 76,204 | $140,000 to $150,000 | |||||
Diluted earnings per share | $ | 0.16 | $ | .39 | $.75 to $.85 | |||||
Operating Margins: | ||||||||||
Electrical and Industrial Products | 5.6 | % | 6.3 | % | 7% | |||||
Galvanizing Services | 18.2 | % | 18.8 | % | 18% | |||||
Cash Provided By Operations | $ | 5,385 | $7,000 | |||||||
Capital Expenditures | $ | 3,493 | $6,000 | |||||||
Depreciation and Amortization of Intangible Assets and Debt Issue Cost | $ | 2,813 | $6,000 | |||||||
AZZ incorporated
Financial and Other Statistical Information
(unaudited)
($ in Thousand)
| Quarter Ended Aug. 31, 2004 | |||
Book to Ship Ratio: | |||
5/31/04 Backlog | $ | 51,900 | |
Qtr. Ending 8/31/04 Bookings | 38,400 | ||
Qtr. Ending 8/31/04 Shipments | 36,500 | ||
8/31/04 Backlog | 53,800 | ||
Book to Ship Ratio | 1.05 to 1 | ||
Outstanding Accounts Receivable Days | 56 | ||
5
