AZZ - Earnings call transcript Q3 2021

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Operator

Good day, and welcome to the AZZ, Inc.

Third Quarter of Fiscal Year 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would like to turn the conference over to Joe Dorame. sir. ahead go Please

Joe Dorame

November Good review thank AZZ, the quarter XXXX the Jack. us Inc. for today third ended year fiscal to financial of XXXX. morning, you, you and joining for XX, Thank results of

Chief the Joining Schlom, Officer, prepared conclusion Nark, Vice of Chief today's Tom Communications at and David Philip for call President, a will and question-and-answer today's Executive Marketing the which Officer, and are Please call Senior note today Ferguson, found Financial the IR. is AZZ's under remarks for we there Relations slide presentation on session. a call, be www.azz.com. can page open Investor Financial After Information

and which begin meaning and response of XXXX. which statements and facts, markets power costs, offered may used coatings call Securities services this we industrial remind conference natural zinc and this Act customer prices metal prepared by the of including to Litigation uncertainties, are products markets, in forward-looking annual the electrical call markets, are report uncertainties contain requested economic domestic; Reform raw generation growth AZZ the of markets; to forward-looking like everyone transmission made the demand XXXX. ended the the gas, the the material in XX, Exchange including company, statements changes XX-K experienced of by and AZZ Commission, demand company's within and in by statements of documents including to, the but changes and during Before constitute Securities and certain that AZZ statements and the from the distribution and markets to of currency adequate acquisition of historical Those February employees conference management process; conditions Private opportunities; and the customer shipments; serves, remarks, management with financing the on rates; include, various involve foreign some in exchange filed galvanizing with Except political risks not implement stability strategies. availability that I'd dip and by team and time-to-time the are limited year the fiscal for of delays hot for risks Form detailed

could as COVID-XX on addition, The call impacted its adversely the let company information statements operations or Executive that AZZ future of and no can any customers over a pandemic. the and obligation the assurance that AZZ. information, With forward-looking assumes forward-looking Tom? whether ongoing potentially me give by as Tom of be statements will These turn otherwise. be Ferguson, to to In to way, based the are of no AZZ’s events date new hereof, of such update Chief statements, result correct. prove out Officer

Thomas Ferguson

And this Joe. XXXX fiscal call. us Happy New everyone and third quarter earnings Thanks, you welcome joining year morning. for our Year to to thank

we continue variety way had have be businesses by adapted our a to challenges have to encompasses normal stabilizing COVID-XX, our new to operating, While which impacted and we of overcome. markets the that of are

earlier. had normal of share with uptick on equally open our had of our plants between Metal sales sequential have progress good we third and generated The improvement efforts form folks the segments. in operating have for production. we shareholders consolidated cash announced quarter returned capital of in performance, the million COVID Board-led this million strategic in of repurchases and all to Coatings review Also, third have an through year. we our over Solution we cases, and $XX have While that of almost split the collective Infrastructure quarter, our dividends remained of made We $XXX

resulted period our basis. operational of $XX.X million, in from of realignment This of $X.XX down XX% from EPS XX% performance While generated of sales same diluted adjusted last an year. share, about down on or $X.XX income QX year, net the and activities the per prior were

quarter Our even Metal from while international Within of to strongly Hot the surface dip down from our navigating year oil refined more due as sales Technologies Solution China. while results their improved well results the X.X% was being third business Infrastructure galvanizing impacted COVID. year, uncertainty sales to quarter same segment, resulting economic refining the from due customer continues Segment were execute a demand turnaround for weak nature protracted the more as last by sales, below the to base lower sequentially, primarily fall muted quarter with season. prior products, same the Coatings COVID. were down

As dynamics to impact the of we and we accelerate aggressive coatings began to strategic steps businesses restructure the pandemic, COVID-XX protracted portfolio due our goal earlier becoming take this previously shifting customer industry of of the year of with a business. predominantly communicated and the to

with of actions sale the quarter of Our businesses the recording and advisors. during of loss the initiating tax legal financial, leading of included review assistance SMS on independent our a and million comprehensive Board-led a $X.X

maximize with As review and Infrastructure team made during has allocation and is of the other the associated the I progress opportunities our mentioned, value capital ongoing. assets shareholder to of I And Solutions exploration the businesses the am quarter. pleased

XXX,XXX XXX,XXX an Finally, brings our year use the shares. repurchased for repurchase share over in to currently given of the quarter, our the capital, total is attractive over we’ve which

the customers. still income their lower the some able how segment sales due plants, were were demand way prior third to While at impacted operating sales primarily Surface Technology in improved they XX.X%. Metal and several to the of COVID margins year, higher quarter badly largest had off of generate to Coatings operating for

week's Technologies lower last However, coating announcement idled Coatings market by growth am pricing acquisition committed level how regarding Metal earlier quarter. during plan customer Texas during segment, maintaining been particularly the as our pleased Acme costs with Milwaukee, to while to to they in as two continues service remain from outstanding value performance, previously the the had this began Wisconsin. We in of drive the plants operational and lines in that benefited quarter, I year. zinc team through reopen evidenced strategic powder for Galvanizing Surface the

grateful I the And to able right Acme to welcome normal am AZZ. to Although the customers close of Galvanizing has want holidays. was pace moment acquisition that COVID the and employees take this after a slowed acquisitions, team our to

second continued previously activity quarter call, indicated, sequentially by on quarter we COVID products. refinery turnaround demand As third constrained the our remained and for the earnings turned travel out restrictions stronger, low

million. third XXXX This quarter $XX.X million decreased as Infrastructure Our fiscal Solutions QX, ago. in in year income to by resulted of to a operating XX.X% segment’s $XXX compared $X.X sales million

throughout effectively activity quarter, our particularly previously, several well services. the on COVID operations will decline as the foreign lower provide in range. domestic a also mentioned demand on shipments guidance in open markets, end was the not I remained refinery the and fiscal projects. U.S., China related of our as associated result they to and suspended and WSI's quarter, to platforms an electrical with sales and decreased many the remained COVID sales facilities the some uncertainty in As our XXXX turnaround uptick working, crews products voltage earnings cases. Due as managed oil-patch pandemic we for of All smaller previously the prolonged and update open bus of high deployed muted in and

last will our earnings year. the versus However, seasonally fourth fourth earnings of the quarter than we improved but quarter quarter third lower we adjusted generate be believe should

low to ability strong us and our the with flow debt XXXX to level fiscal year manage remainder consistent Our generate liquidity ability effectively our cash debt with throughout provides combined beyond. of the and

Board we wrap meetings. XXXX as to a cadence for normal establish up it guidance for budgeting fiscal annual the expect We our review process upcoming and at our

business Coatings is the fairly normal states restrictions despite in and some and operate in. we level few disruptions of Metal at Our continued a operating a cities

that improving infrastructure. and vital to We remains are our sustaining confident business though

of growth So year core remainder we position to businesses and said, provide to into I'll long it With sustainable future. that to equipped our stronger will the our use turn profitability Philip. the over better to emerge fiscal

Philip Schlom

Thanks, Tom.

to quarter. third Sales continued from noted primarily third $XX.X compared to XX.X% Operating compared the $XXX.X divested For result million, per and million down the year than EPS quarter Diluted of per the XXXX sales sales, sales, sales of decreased quarter $XX.X improved third Net strong point fiscal decrease lower industrial a the gross XX.X% Coatings the basis lower infrastructure a XX.X% share year-over-year fiscal reported year. prior quarter Metal XXXX sales quarter million were million, year. basis was of the the of driven points result million, the or a year basis, performance the third XX share margin Tom quarter and of quarter. third Despite prior declined segment. a $XX.X prior company's the as as on was a within XX.X% the XX the from income increased in or year X.X%, to -- points, sales past XXX of to lower the of of margins 'XX $X.XX of prior over as XX.X% for $X.XX by quarter. fiscal $X.X margin of of XX.X% third in Operating for in platform $XX.X million third third XXXX pandemic in decrease year. of the entities income year lost fiscal below aggregate prior we the

in of third $XX.X Third last EBITDA million and to $XX.X decreased EBITDA compared XX.X% year's quarter million, quarter.

as same in as per million was decrease charges $XX.X prior year XX.X% year, sales third we quarter share, period million, or in impairment a quarter markets restrictions reported last million, income, net of resulting XX.X% which and the mostly an declined period and well from $XX.X EPS compared year-to-date to XX.X% below 'XX, softer EPS restructuring million restructuring was travel million, diluted XX.X% a XXXX $X.XX third $XX $XXX.X the of in the our adjusted year. impairment year. As incurred driven reduction early the year-to-date as same the adjusted a pandemic in Solutions for the Year-to-date for the Infrastructure in charges, segment. or year. in the per net income was than prior year-to-date share and sales last of lower results, $X.XX for results. Year-to-date, from was period On primarily share, diluted $X.XX the by the $XX.X comparable million, for of XX.X% same basis, the as fiscal primarily last the $XXX.X Year-to-date to reported year

XX.X% period XX.X% $XX.X lower the to margin turn $XX.X of gross year. year. $XX.X XX.X% XX and now was million On liquidity million XX basis impairment a same allocation. below our to operating basis, the the of year, in regarding or year. prior margins operating lower reported charges, a operating the reported $XX.X million, decreased year-to-date compared the provided our XXX profit XX.X% gross Year-to-date or the of net X.X% declined comparable year-to-date XXXX from basis $XX.X the discussion Year-to-date On net year capital year. or margin last excluding than of X.X% million, the for reported prior points, from were operating basis of last year-to-date by impact primarily points cash a restructuring impact prior of XX.X% and margins fiscal from million of Our points basis, year-to-date I'll declined activities $XX.X period million income. the of

year-to-date average thousand for noted, as in the as expectations spending year-to-date equipment back and on the have at $XX.X debt repurchased our Tom? $XX.XX. of At $X.X third sheet. end Investments of had During business quarter quarter million XXXX, were Tom per a million year, line of from the million the million a our share. turn common basis, million third manage the roughly of of with our to On balance $XX.X stock $XX our Tom his shares shares average capital price is now final million XXXX, an support to year. of the XXX,XXX which it at to an fiscal we XXX.X are existing for of down for effectively third quarter of of our price fiscal continue we basis, I'll our repurchased we comments. $XXX in $XX.XX end

Thomas Ferguson

to sharing monitor. key I Philip. continue you, that some will close you indicators by Thank with we

will For are tracking in anticipate are to we solid stable, and are quarter, closely balance fourth remain activity. kettles December. Coatings fabrication segment, and we of but our Zinc Metal during the and activity reasonably in zinc construction Gulf good our Within team operating galvanizing the as zinc existing a business, relatively fabrication increases have in steel been integrated market galvanizing our costs off a start LME XXXX, on fiscal network, our is now. dip a in the leading for two into America, Acme costs Coast bringing Galvanizing closing recently locations rising while sites North quickly spite of to prices XX locations. total being The in hot our we

we're existing with driving primarily growing process on improvements. technologies, both focused operational new and sales and surface customers For

Solutions the refining of in platform we states industrial are the with the segment, Within restrictions situation the large travel monitor to carefully in we COVID Infrastructure experiencing some Currently, countries. continue still capacities.

proposal the December. platform the Infrastructure electrical tracking Solutions experienced activity of in carefully and For we solid are bookings segment,

will growing fiscal backlog units year We shape. of the to continue we focus business good so enter that many for on XXXX in our

customer Finally, above if technologies. Metal is to strong believe have management achieving focus, including strategy galvanizing XX% and customer to Coatings to cash will margin experienced and for XX%, cash We remain we while crisis, profile, processes XX% not technologies Post-COVID rebuild our further oversight and customer surface operating end, have payments. increased to to from we any a grows. have contribution credit. indicators on we as surface tend corporate, flow demand around to slowdown going run in Currently, our its margins, committed high the not the growth an

enter For will about on we in COVID on Infrastructure margins disruptions and spite other restructuring we review momentum. well-positioned actions activities while this businesses quite completing the finish focus continue intend comprehensive Solutions, strategic to year are our of feel complete of taken fiscal We fiscal evaluation to this We confident, improving segment. already that the the now with operating and underway. XXXX we've focus and the to of Board-led

support aggressively growth in Finally, our plan. activities of active primarily we'll we and will strategic area Coatings, that in seek remain the M&A, Metal

deal travel travel to continue active during questions. we open of it third improved was are restricted we'll somewhat And pandemic-related that, up quarter, conditions seeing that with portfolio and the have While for still an we opportunities will pursue.

Operator

[Operator & question Franzreb Sidoti Company. Instructions] come Please And our John go first ahead. with will from

John Franzreb

Philip. Tom good morning, and Hi,

Thomas Ferguson

John. Hey,

John Franzreb

of questions. want Just A couple hey. to quick say

that margin improvement of on a pricing? divestiture the much the underperforming First, margin, of some the in much how segment, reflect does operating the improvement how on zinc -- does the Metal that Coatings year-over-year, in versus businesses the in

Thomas Ferguson

question. not year, we facilities good effect, And Galvabar closed most still the the picked by that price of but cost, in business It's up driving versus had that driven other a the earlier That's of much. some zinc predominantly then operational we improvement, locations. divestiture really in

John Franzreb

lower in prices Am the so business a than Okay, that of really, I it profile was getting more change zinc. correct? the

Thomas Ferguson

of value and COVID, something -- to cost on part did we our point lower keeping play zinc the ability no, open lot. a a No, and operating operations but our sell and was through I to think

John Franzreb

Okay.

conference business? turnaround the it last side for about the you positive that the a promising on to spoke fall, still Is anticipated You negative changed the the or spring. bookings infrastructure been that order due of were this call has case the season weak and that but

Thomas Ferguson

it's Yeah, which weak off oil demand -- turnarounds. -- reason. fall oil doesn't so for QX came was weak it's to driven what mostly we some in that The locations, refined drive WSI last year product about thought. We able business to travel significantly were but versus by

spring, spring. feel of As stacking are season, the we getting the I still orders -- the -- won’t quoting of on some and books. the a up say, far to but well [ph] turnaround about a spring good boomer don't we be as

start fuel to feel gasoline are grow. for we like demand take things and little but not, to demand a good doing refineries bit longer definitely to as So again going about it, seems jet turnarounds continues

say So through to lot about spring, spread pretty of like the the year. this while is looking it's feel we good I'd a going

John Franzreb

fees out into last us? for or there you back during one the that fourth was incurred in parcel quarter quarter And question, professional you could the I’ll queue, anticipate Okay. get any

Philip Schlom

Yes.

our some point they're that related review are say we've wouldn't to We disclosed. time. comprehensive overly significant I at incurring this fees in

John Franzreb

Okay. I'll get guys. back in queue. Thanks,

Thomas Ferguson

John. right, All

Operator

ahead. next question Noelle from with will come Dilts go Our Please Stifel.

Thomas Ferguson

Noelle. Hi,

Operator

me, Pardon -- it question left seems that queue. has Dilts Noelle it seems she the has

will go Our next ahead. question Braatz Please Capital. City John with come from Kansas

John Braatz

as have fit -- would strategy? a that you review, -- there about you currently question a else might more that What Tom everyone. surface company, into morning, technology. being in Metal Coatings do be Good your strategic the think you and galvanizing

Thomas Ferguson

I -- types and things of lot different think, there's coatings, anodizing it's types of a of that. plating, different of lots like

metal the about already, because just couple last with we coatings, talk it versus opens we of acquired when bit, we're as the than coating quite it a businesses coatings, pieces. in years, we're So more found up lot we've just metal a

be So a things that that differentiated, than makes can some it market. wide a more a scale, really, paint finding shop require that in The setting that for us issue garage. up is really have

do in us, margin a something for commitments while think to open looking profile we on have what because for ability set it's of our on we're of I our differentiate. tight it's So and that wide parameters of terms opportunities the

galvanizing plant -- the and to And delays at to goes that be So one I think all down delays, the and believe. online completing continues COVID Houston and we're it's online end month, things there the of weather due that's -- spin opportunities. another this going I of think in I

And that to us for so grow at look organically. as opportunities other we

there's because still, and with for while had obviously the COVID. acquisition delayed that deal and we've working a of So Acme, on of it been been

we as of out we're the deals. contact start in traditional galvanizing to with And so some get again,

about we pretty things. good So feel

John Braatz

want to looking to, parameters, want at you financial there we is of -- size tell be us about terms size? terms anything talk in Okay, you might -- what a of can parameters, what you in of might you

Thomas Ferguson

But have target. north -- and have prefer play up our to the to pretty we're still million we million $XX obviously that $XXX building over plug of an way probably more million we operating can does revenue, look bench to just things does is we're is XX preferred don't -- $XX team, to much do focused it because it at in We $XX galvanizing, we have so we on galvanizing. talent leadership people on, unlike have million

more we're there's kind say them. about, I'll and place. the really owners and of a leadership's what there the in a -- as are we go what say and little So this I we size XXs, is of prefer for careful call looking away. But not Usually X lot I'd out

EBITDA, XX% acquisitive. tend X% So they're they have multisite deals, EBIT, been because to if

have a lot operating And of not a of so DA, they but income. lot

good in So this have pipeline opportunities. a pretty we market. yet down the And narrows that slate still of it's the

John Braatz

Tom, December, want that of here with we look you and company of but domestically, and bidding on a spring And it's if I or you're had postponed on, in and you of at question, call be and fertilizer happen? forth. I after on, potentially so about being some COVID Or about cases? talked that for it, guess they one nice it's talked travel them things, lot to restrictions and so to turnaround are just delayed, because activity going of and abbreviated going conversation they at in still so a final season. locked just a risk of there as to point their And the turnaround this of are increase this because at is season sort sort

Thomas Ferguson

that some go to some we as go to we bit it that probably on we forward. think a And seldom of thinking the orders, thinking about I earlier, us has starts not last get is do is that that they and sight the gives what us strong of in it's once prefer how we -- little and as I going and pause as do being have give -- call. big surety this think earnings is were it I a in engineering answered of line engineering to when forward. course, -- Very project forward. we some orders

So still yes, some there's concern.

we in January, see activity some the February that would or see the we fall normally spring. seeing either are in We probably it’s seen in would

able So spread a they low it things the because to petrochem seem of so out does perhaps is things. that demand, sector bit, are spreading little

limitations spike I to on the why because could do the this number in crews that's for deploy. have So actually, big some without of we good say spring. longer season have be of the we that's a But us

John Braatz

all Tom, it. Appreciate Okay, thanks much. right. very

Operator

question ahead. Please Dilts come next will Our Stifel. with from Noelle go

Noelle Dilts

Yes, good morning.

Thomas Ferguson

Hey, Noelle.

Noelle Dilts

not before on I'm what anywhere. went I sure though, go didn't

the for and on the just I to first a business. electrical on wanted Solutions, start side little the of side demand Infrastructure bit more So

stronger anticipating, So sorry help missed just if that you the I think were next switchgear sustainable you might could me degree originally for than demand be over to quarters? but what's this, understand you and the the which driving few

Thomas Ferguson

spend the distribution transmission and good has the gen been as power think solar some has well. I activity good been Yeah, of

getting just that switch of gear. where stage where the these in some So projects time to they they're need it's

up also, it industrial picked the We an of switchgear call years of light we Oshkosh, with and I acquisition more or couple rail. of even line ago, industrial

our switchgears. broadened it's So opportunities for

on utility the big stuff. So we're not just grade dependent

So good although that's recently. had activity where we've

on just a So, base sure in around the I'd activity our some it and the we're in enclosures base. somewhat that focused similar, been it's is and customer our has but enclosure part the and uptick general big -- the And our not been of stuff where smaller has of off of industrial, it's of more solid. say customer our I'm indicative It's big some side, sector. OEM

mixed it's out a So just there. really bag

where medium focused we've they're last and we most we're a In side orders, part on we picking voltage and the our up some where narrow that customers of for is international was so some versus it's have what is of a a There's voltage, high gotten which quarter where activity. and the quiet. not, active now, domestic -- lot offering we're just have. And right part, the bus fairly are this selling but the versus

So a ago. than we're just were slower couple years we

Noelle Dilts

remain could but been has in this that forward, the industrial -- structure shifting expectations. If the know been particularly business the exceeded quarter you we given turnaround, somewhat is that really my profitability. speak moving And for Solutions, I to margins at the turnaround kind mean. muted said, has look I of slow, you're pretty the as how Okay. cost the forward? work turnaround with flexible. will as Got to then And sticking it. you Infrastructure still that thinking side, there Profitability work about

where So point quarters? few to it's do as you at kind were over now of a past as not you a of where looking big have the drag, it

Thomas Ferguson

Yes.

Noelle. spring, saw on back in touched well, We that we wiped the spring had taken cost when good the had pretty a You early, point significant there, out. actions been

So the we took to office, Solutions adjusted the some out Infrastructure of capacity call that back some but in operations. SG&A hate in and of

the moderate So our third structure. that know, work to were you that the originally were of came or as have, then as we we because have spring. activity opportunities, we upside quarter with the limits though, us margins, cost into as lower the to and able we anticipating just on good And even big that muted also when activity, get we did in pretty on

it So do hope stretches that out. we

that's I getting we we're profile actions Infrastructure XX% we try EBITDA. structure have, with think the to structure. improve And continue markets to to the we the cost Solutions, serve taking think the with and margin operating our to for ability XX% margin, to on international to doable XX% side the lower look with at that a international

Noelle Dilts

growth weak, on markets those and particularly business particularly the were about XX are then you're how any the that that for markets comments any that guess or I over you months? the profile in Okay. shifting Coating, Metal every changes ask thinking how over I maybe Great. -- that any to And next just quarter, have were strong impacting

Thomas Ferguson

side. Metal we You Coating our love do know,

did productive the -- efficient. team well, their and galvanizing and outstandingly So facilities keeping they open

of DGS. the plant adjust we've more react also even capacity, to and some margins zinc credit for their digital and is getting done productively of driven close So probably north on range of or us but technology I quarter. price to it. the XX% cost efficiently data part by were galvanizing the system, the mentioned more the our we're in earlier, that, and and from side give to flex to with And things as ratio, then the we allowing It's operate XX%,

good basis. feel that an ongoing we about So on

out. Our finished for and of about markets year quarter line to good have how year, -- as kind a turn this we sight we going this of good this is feel

okay As going we customers now, impact get feeling is I attitude. year, to waiting Bill, kind which of see on into next them tax next be it to be going are -- right reform? our wouldn’t changes Is an think Infrastructure but have year, the there there they're to corporate we're much

say coming there some into we our we've probably out market, about online. come plants a competition some good I'd feel next year, some few the going as So forward, of is the kettles folks. other At time, taken that'll new same

galvanizing pretty balance about good feel the we team's demand good it. So to supply respond in to and feel our about ability

when -- that. at we but up continue -- I Metal good of stay believe XX to say, doing sustaining yeah, So like north COO doesn't pretty of Coating I my they're it around XX%, they've demonstrated,

Noelle Dilts

you much. very Thank perfect. Okay,

Operator

DeForest go Walthausen Please the & ahead. from will with next Our Company. Hinman question come

DeForest Hinman

questions. thanks the Hi, for taking

last that Just made. extend building can you into comment, you pricing, on that

reference On XXXX? to going the move be able pricing going zinc galvanizing in side, to to up. you pricing Are made higher we directionally

Thomas Ferguson

price of goods sold zinc tend I the on cost since it'll of think there's generally about that's is market move cost average, zinc to up. XX% -- our -- as

We galvanizing like XX think values, to, our go As job, week. every intent to we've it's -- up. migrate sustaining I different as did plants. selling to prices. fight We tell would battles got of good But our prices costs a be our people, up XX it our I

to go which But -- our competitors would keep of respond fully respond that that, that. staffed continuing that because we And yeah, hope up the COVID, to costs continues. And open. would them up. that so through be were would our as market able facilities was to were we intent the before Some to our migrate price

DeForest Hinman

Okay, helpful. very

the bargain Or million the in a were phrased, $X.X gain? net purchase says the $X.X clarity is and way Just to proceeds it's just there's was transaction, Is million. a that consideration? Acme that it it XX-Q reference cash

Philip Schlom

cash a That's consideration.

DeForest Hinman

Okay. we're more And of there is there? purchase an that that Or EBITDA price any type kind is color seeing? number asset that type of of

Philip Schlom

in the mentioned first asset months. in past the pretty the facilities and as quickly we're of Thomas more purchase to three those integrate within year, That's we get price, able and

we've AZZ Oracle So of moving on into them into up them a way integrating there our had already the doing business team system day and one, things.

DeForest Hinman

XX Okay. entail? the that Can any commentary announced, and on And that within then that next X us give in we're related to the deals working closing terms the of color could you then outlay these deals. continued there's just potentially of to expectations we type any for deal months

Thomas Ferguson

been yes, working do to it on deals frame. and anything going specific say be in we're has I closed so, -- have just hate to we Just would any time some get to done thought we

mostly We do are deals. we quite traveling to face a we've face working Acme been with team, for while. The where

was So there. long a there relationship

of We a relationships have other in opportunities. long couple

got so would the just continue of of But year I right first think that then look to done. of can those -- it's But many the there's divestitures we every and -- the we deals now. couple I move early we in for only part get year, done hope one us forward. And to during part a just and year acquisition normally year. so variables the This did

the couple, versus year, on fiscal them But would half get normal, can't. first I this I in three back calling get for acquisition done upcoming second, a side. into So our the we'll think really the deals

DeForest Hinman

I think share last Does third the utilizing share active own and or our relates the pretty utilizing And share we're stock the been moving helpful. in responded to update markets XXs give the the the share on you deployment acquisitions? doing to market's think capital as just well price the price us when an outlook strategic current authorization, expectations that's quarter, execution, to up buying dampen the our review the for repurchase Okay, repurchase about high of authorization in question, generally. it can starting

Philip Schlom

That's question. really a good

I to where we're and think is and we're part Philip pieces -- as this is do valuation thing and AZZ going this the comprehensive And that comprehensive of continue obviously looking review. buy. doing its of at through one review, we

board. capital the asking have to to just were depending So we on M&A $XXX across you activity. spend, we Board We'll how million as related deploy evaluate authorized

Thomas Ferguson

a anticipated in run things had had in the rapid XXbX-X place that was up share we our Yes, not quarter. we and one for I want And to price. the of add, the

the we in of so did the outstrip quarter. it And part latter

kind the at. we are our So maybe the but will that's quarter, of dampened right at the look the that activity of thing things those end

As evaluation Philip an a said, on of one valuation. meeting got looking was coming got Board the update at We've up. we've and activities that

of So go. weeks which have a we'll idea couple direction we're just to the in going next better

DeForest Hinman

Okay, your time. you I appreciate color. the thank for

Thomas Ferguson

Thank you.

Operator

come will Company. Sidoti Our Please Franzreb go next ahead. question John with and from

John Franzreb

continue had or guidance budgetary that month to in Yes, like Does Tom, that you once you guidance past to your through sometime issuing in going you mean I revisit think your go the you're remarks, suspend you you'll process. it this while said that be not?

Thomas Ferguson

a we ongoing hope any that me want would don’t gives strategic pause out guidance And two And strategic only put announce We to. weeks is for activity. do sure, move. later thing we have The just this I to evaluation then make XXXX.

only be my our back it to be would intent cadence. note cautionary into would other than get So that that

John Franzreb

and sold just in of sales, the Infrastructure it, on being likelihood or the a the current being as business, and it strategic review what's sold whole the potential piecemeal? Got unit

Thomas Ferguson

We're be that, point me to in handicap for to that evaluation not honest. the yet at

John Franzreb

Okay, I shot. gave it a

thank Okay, you.

Thomas Ferguson

John. right, All

Operator

This like question-and-answer Tom go turn concludes Please for ahead, sir. conference over the closing to session. remarks. Ferguson would back to our I any

John Franzreb

for year, be this calls our We this you end we'll evaluation look to fiscal note. want able at just being out you folks finishing And the direction Nark hopefully is strategic positive on talking and year as announce call, all of David from on then a from further the forward activities. discussions. to to and to the being we to available if -- thank you always, take have We

you And look to very that. so Thank much. forward we

Operator

conference you The has presentation. for now concluded. Thank attending today's

You disconnect. may now

AZZ (AZZ) 11 Jan 212021 Q3 Earnings call transcript