AZZ - Earnings call transcript Q4 2021

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Operator

Good morning, and welcome to the AZZ, Inc. Fourth Quarter and Fiscal Year 2021 Financial Results Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. Please note, this event is being recorded. to conference like Dorame, to now Partner. Managing would turn over the Joe I ahead. go Please

Joe Dorame

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

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

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

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 be me give by as Tom of potentially 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

Tom Ferguson

for Joe, and earnings you and welcome fourth quarter fiscal XXXX thank Thanks us and morning. call, this year to full our joining

able and the reaching we declined sales Overall, respond concerted ordinary versus cases, the in employees, AZZ as fiscal efforts several prior COVID as declining and for XX% XX% lower to our by XXth pandemic, of to Metal express need appreciation stepped The impacted $XXX will consecutive down I caused the COVID partners completed portion also divestitures the storm great profitability, two up that year. our we we during by AZZ during take the to able our and the impact of we some year the X% of quarter. million. primarily million, annual our were families driven just to to First, future. out along. Due Infrastructure finish way our as a end significant were COVID made $XXX before impacted winter our pleased to well for have on go fourth our and get were profitable my negatively customers the Solutions year. results, better employees, to our and to Coatings I into the the details of record with million during of position pandemic, volumes year extra weeks a this and quickly We're by while the the actions production their $XXX

$XX during We during plants of a conditions businesses generate cash adjusted successful were net completing the that strong plants market closed couple continue divestiture galvanizing of generated by of of our provided the year the million our income the EPS efficiently absorb cash operating their share. year; with to We diluted per $X.XX of other flow could both $XX local business. net majority adjusted SMS We activities. of and the in and due of Galvabar to and we proximity million

of productivity basis, rising achieving remain plant Technology labor primarily recently of severely Surface energy adjusted shares the customers distributed value due closed but an made for and also line were nicely of which the galvanizing previous we fiscal hydrogen the the strategic that committed The and to our $XXX operating The improvement two face dividends. is for commitment driving to repurchased while margin million the $X.X coatings and on business COVID costs. of our In brought Metal million to of year. by to investments we was delivering XX.X% note acquisition Surface the it in than in with operating year. near lines, We business, million, the in more In Acme impacted back efficiencies We Milwaukee sites. this posted $XX.X team from online. Technology on over in up margins the and million creation, X.X Galvanizing end of sales completed important on Coatings were

uncertainty, severely income COVID for are Segment folks $X.X declined well early fiscal managing year. deemed margins totaled it year. the over with key, to divested be our COVID strategy. of Solutions for SMS to to business Our X.X%. adjusted but particularly as the part in was by safe. employees the Restructuring of some The Sales million, was down and term our million non-core impacted adjusted the disruptions our pandemic, generating XXXX Infrastructure $XXX charges Infrastructure generate XX%, to keeping long impairment XX% Solutions the We and operating continues

reaffirming our previously sales $XXX is increasing. growth, to to to sales in are and galvanizing due including Coatings to several million also to on range sites. Operational leveraging of be cost $X.XX. or spin anticipate million $XXX Metal and on focus are execution operating of inflation labor we operations continuing $X.XX issued We EPS they guidance. So and service – operational as in expenses focused are material the customer

gradual entered and business Our normalized return more Infrastructure QX seeing segment Solution activity to a some is momentum. with

good Poland business the on expanded experience continues execution and due at facility, although growing project seeing to its Platform delays sites. is focused operational outbreaks some Businesses customer from The our Industrial is globally Electrical E-House certain switchgear to businesses. Our intermittent and results COVID

are to services For growth At of that we fiscal will year shareholder our infrastructure. on execute XXXX, to core objectives drive sustaining Metal company AZZ value. provider manufacturer and strategic continue are a Coatings critical a to of and products

commitment is unwavering. superior to customer Our service

emphasis Our manage strong generate and collection initiatives ability to cost operating excellence, within flows our pricing to cash drive platforms. discipline is share receivables on and on based operational

we're businesses it over actively We I'll provide into infrastructure, future. long with improving Philip. vital sustaining remain And the are that to to sustainable to our turn so businesses our working profitability core that confident to position and said,

Philip Schlom

Thanks Tom.

million XX.X% fiscal we below XXXX, than quarter fourth XXXX. for quarter year. fiscal fourth reported or year the million, of of of prior sales the lower $XXX.X Gross million the $XX.X year quarter XX.X% was For margin $X.X million $XX.X of or

year-over-year. comparable diluted compared to of the sales gross Infrastructure quarter of on our rose the sale million a the and margins income $XX.X business compared charges Net quarter, a assets was fourth loss per year fourth recorded XX.X% million point within XX.X% improvement year of to basis $XX.X share. was in company However, segment. of to $X.XX to nuclear the the Solutions related EPS prior for the prior while for in quarter loss had logistics the the impairment recorded Reported XXX quarter,

charges the $XXX.X $XXX.X as EBITDA of year to of indicated year-over-year EBITDA Cash the $XXX from adjusted downturn of Industrial earlier adjusted performance, to year year's largely million as result impacted Solutions tax a prior partially million, to million $X.XX on the result divestitures and $XX.X Metal and Solutions the in the million profit in million operating on reduction compared X.X% pandemic current points year SMS where XX.X% the or $XX prior from the operating lower our had our XX.X% full year a within was current impact as prior profit year. million in sales XX.X% from fiscal income, a decrease of compared offset prior of billion, net year year. earnings, or due Infrastructure than well a working and XX% XX.X% Energy profit basis, the the for million lower our [ph] in adjusted were as million, of as capital the year. during impairment $XXX.X million business impact as fiscal year with pandemic, Coatings than Market XX they Tom the $XX.X prior or from fluctuations ‘XX Gross was XXXX compared XX.X% Electrical the China Coatings to and the sales of business as $XXX.X our by the the were expense to and during Galvabar as lower part down prior million for was our year charges restructuring backlog. prior we Platforms which Solutions year. Infrastructure to $XX.X the million. the As mostly more pandemic. restructuring in by recorded on on divestitures $XX $XXX.X operating prior higher business reduced current XX.X% prior down by the year. to execute margins adjusted of of segment. compared the reported was profit on from offset the continue lower second in basis were strongly Metal flows Operating partially year improved in a stronger in as was in margins, non-cash Infrastructure are $XX.X the China and EBITDA of Full Full the quarter year year on existing year's of million, impairment revenues result current million impact operations as lower $XX.X operating the business year of lower were for Reported year charges, year losses as Reported

million bearing During in to XX with we year. million over our interest with shares; of borrowings $X.X with seven $XXX resulting periods outstanding year In following: refinanced the million, year - million market $XXX tougher successfully capital regards annual were allocation $XXX We notes senior accomplish million navigate pandemic of end the million last million, and in we $XXX to in conditions interest business. we reduce in expense. Even debt upsized to able and lower the to the were year able in XX.X the continue invest offering at repurchased an million ending of under X%, $XXX to we compared borrowings $XX X.XX% fiscal

balance dividends. as We during the we strategies our we and of and during acquired by support and continue XXXX. completed on initiatives one liquidity with continue investing million operations evaluate operation operations projects plating as spin and and underperforming We the as maintain divested January sheet allocation noted Tom year. to quarterly Houston capital progress from growth manufacturing further strong our to our facility. We $XX.X have Poland and We continue modernization internally as had well year a alternatives. the expansion of closed pay to galvanizing We strategic in plenty plant, capital

Tom. Lastly, related I'll our and our back we material successfully controls it to reporting our accounting. improved reported turn With to financial weaknesses remediated tax internal over previously that,

Tom Ferguson

Philip. Thanks

paying Here are particular to. are some key indicators attention that we

For and Coating carefully we and business, labor and material galvanizing activity, cost segments, fabrication progress Metal of the tracking are legislation. inflation construction infrastructure

technologies our customer take getting expanding back customers time normal and some we our base of may are considerable service on primarily to focused For production. in

turn and with activity. season fall having distribution start is and The a decent and a the and data Electoral is returned Platform be quite outage good. center to activity transmission battery looking normal level, increasing storage energy off to around we're Solutions spending, utility Infrastructure currently and benefiting For to from

achieving completing facility. review Metal committed we XX% credit our are strategy focused of and solutions the improve performance margins quite continue Finally on galvanizing and to infrastructure XX% strategic growth being operating replacing We with our around Surface remain for steady we Technologies. as to Coatings to corporate,

galvanizing. We will remain inquisitive, particularly in

profitable on businesses. Infrastructure focus to in For we our core continue Solutions growth will

benefit should and that, market datacenter questions. for solid E-houses And seasons utility up switchgear. unit open we'll more Infrastructure T&D, turnaround a Our business from Solutions it with in normal and and outage for

Operator

begin now [Operator We Instructions]. will session. the question-and-answer

first Our comes question with & Franzreb John Sidoti from Company. today

John Franzreb

Good morning guys.

you talk ’XX? maybe could if every corporate, the and quarter of the about been regarding just there’s revenue fourth the differed First, any first impact, winter quarter storm's into on the

Philip Schlom

in last the our would the a recover year, Texas able think during couple first of last quarter. business I were weeks was the the mostly here carryover North first Midwest A lot we into the to the to year, bit. up quarter of two but weeks of we impacted believe during the in some there be little

Tom Ferguson

pretty though. It's minor

John Franzreb

Minor or meaning scope? million just that beyond a couple of

Tom Ferguson

Not even much. that

John Franzreb

right. all Okay,

headwind kind mentioned in year your little you prepared costs? can roughly remarks that in present Secondly, of you to zinc What providing XX talk ahead? a You Tom, the about bit pound. did a about

Tom Ferguson

seeing zinc that $X.XX stable $X.XX have been think fairly while, for You so know range. in to now costs little I we're a

I think if even too right a got little the normal six I’ve within the more year. of know or you it's our months, stays but there, our inventory look bit thought first it know XX already the likely part significant in even now, – about for be you or could tremendous lot down a we in that range, don't its so cattle, about in we've and costs than XX headwinds so – headwinds that

John Franzreb

last spring we said you spoke the season relative fall, closer like looking couple time turnaround And to what's better home, to great. look the of ago? the the Okay, a months but in was season that turnaround

Tom Ferguson

on We've We're deployed few been projects. international that’s job. active. one COVID a one aware crew's It's of the where had quite been pulled that only on because I'm – back of

I’d the active. good year. it's No I'm a last most what We significantly know. you mega for but call have So any, don't better Wales them spring of as in stream those just having be on really are of the projects, part, of scope it activity so a of there's good season. solid delays. been good growth because getting should lot site, a A lot we’re than

John Franzreb

back take get into questions. I'll Okay, let queue else somebody the and

Tom Ferguson

Thanks John.

Operator

Dilts next Stifel. Noelle Our from question with comes

Noelle Dilts

Hi on year. finishing guys, out tough congrats and a

Tom Ferguson

Thanks Noelle.

Noelle Dilts

first you question costs raw kind that impacts about of and hoping line material I sticks you're just of to how the know speak my that steel thinking you with inflation. escalated could So how was have on your of seeing and you're know and coatings an relates generally the being you demand to with if it steel. as industrial produced side things just metal position cost business then Thanks. any impact with

Tom Ferguson

short where raw metal Yeah, for electrical I material buy they of part relatively – think for side a know particularly on time the quote we're of job cycle have the we know fabrication, a lot the times from talking the to months. you of you of a most for maybe a on terms in weeks, the we time books, couple so matter and

of to able part vast into say majority been So far I’d so work costs so most the those and that’s for has bids happening. our we’re the increased what

know either for of the could appreciate creating of lot it but that a you mostly haven't Metal we have us, are it’s attention lot headwind we the the we're seen of happen, more steel, projects. in the as Coatings but because for and delays availability longer headwinds cost the of we the moment, cancellations steel the if some hearing so of or at you just part seeing market place or you side, a of that of doesn't continues moment that steel we pose far latter we running year, know noise. we to close the towards see are so – On a either but to, and do definitely steel know are cost, for the paying something because our on as tight term, availability get soon fabricators in In

Noelle Dilts

Okay, that’s helpful.

in on the I'm I’m then galvanizing what the sorry, could and you always and T&D bit of I hoping the markets. infrastructure returns industrial metal T&D, markets. interested the expand forward just hearing key – seeing, coatings So key then some you’re you're was on a

Tom Ferguson

there dip and pull for bullish the feeling including that's been been transmission going been good stuff on Yes, has we've positive. good. so of Ag Quite we’re of so been hot a activity, uptick distribution always XG that’s an seen active and you fairly so bit there's that's and… galvanizing, know – where some

I dioxin we of and too which a for thing, our think to is of expecting we've of have seen the the throughout the were we the of quite Midwest, sites. not that enough some see a so you year, coming seen prior we've staff, know [ph]. lot And strangely other out recreation activity but that seen floods bit from Ag positive of a lot

major generally So activity and have have so it's on, good positive. the been that petrochemical and some a We even markets relatively project seen pretty we've positive been sized good. just

Noelle Dilts

obviously to know understand news to-date. Okay, in you there. from categories know about been information, then that's goal the you that news what the the potential we're some something have think of are to I exposure your opportunity the how headlines great. will thinking proposed you of be how kind of Could about you looking at you sort know likely And today, about the different a you speak Nurasol. ultimate lot but for of in the

Tom Ferguson

of our fabricators know an of the we're and for know looking you by part, most not customer much we're Yeah, is difficulty this spend any the our you the not impact the flows year. into much for us expecting this time at actual – base,

expanded, on in has and and Texas to comes we us distribution, So next for but as the more about when business, be the to particularly electrical Gen winter it grid updated here saw metal a it through we continue good know is really year, almost spend excited transmission our infrastructure any maybe little starts get storm. power but the to coatings

something So looking paying would now good as it. at coatings attention and also impacts we're looking year. just – into our not definitely if year We're it’s for it as metals so right it good for but our more get at infrastructure the got the just next into this close I capacity play and optimism that's but deployment but guess you our mood we through know done, and side, we're solutions, as facilities capital

Noelle Dilts

very thanks right, All much.

Tom Ferguson

Thanks Noelle.

Operator

Company. Sidoti [Operator John Instructions] is a Franzreb question Our from follow-up next and with

John Franzreb

that talk in be rate what about just quarter you you thinking you in XXXX? fourth tax the can and Yeah, about the should put

Philip Schlom

in tax up little we’re finishing to year finished like little tax hover it bit over point a with for in rate the but XX.X%, of than a we're our see a going Yeah, bill an I we’re higher see at think last XX%. unless to that and at uptick, there's bit change. going year we'd range, just obviously up XX%, this Might time,

John Franzreb

How Any the XXXX. in configured $XX know – currently a at that about does is you thoughts year. million know make spending, ample a you the good company

Tom Ferguson

I you’ll more we think year, growth initiatives. of a see little couple because that we last spent had a

that this business. invest to will spending we're in see the you year a continuing down So where capital come bit

in we're full spending $XX $XX $XX a the million you'll million, think million the us I So probably year of spend. in see maintenance type and on

John Franzreb

far Is last staffed, as about and activity there kind just labor issue an Okay, personnel yeah. one our update, question to us more fully give costs. of as any

Tom Ferguson

markets markets that and to we yeah, areas, look a for entry lot I recruiting across of know, are have But craft been deployed cases and we but had in guess in some continue. can and of last very on that focus you had make it's more percent major about; are the for the are talk which then XX of you we so increasing a labor couple some to we to programs something a it's we’ve to cost. are and sure don't news and a locations we we're bit generally and want our – fully definitely we spread – having the so. generally, we're at in staffed, from access cost level our Yeah, look to enhance pulling as years. light, business use I metropolitan But It’s get to also to good lot we're but are a is has that resources they than total the know manageable. people we of the you temp-up. know

John Franzreb

Okay, considered on pipeline does to the you update, of giving and an have look on sorry your this, comment us you what like I’m thoughts them a – and push (a) and just there. but kind know

Tom Ferguson

normally I can't we're going buyer wish we this in dragging for to normal do slowed in the but think looks get part locations, for things. the a but Yeah, get into quarter, done so extra can America and in like most now, just negotiations. I we officers to of of some or in – know, They for really get just travel say our so it everything's the in we're intend impact an really, I due could like you we're know diligence, out part quarter said, most are without of you to cases ready North days and kind levels. terms two And have or activity and the finalize I most all to places weeks, cases that there's so get – just been have that we've quarantining I of just some by pipeline, we we so something COVID and a vaccinated solid think my relational

are we enough the work, for see to in people we've in so. out pipeline teed it travel willing and we'd deal way, so. So have year just and that we are get loosening to to But that done, two do more up, us we anything or up or done while the don't is that we and like getting get deals of this even early more – we ensure got three so the part usually can will here have some deals don't that

John Franzreb

it. appreciate Thank follow-ups. you the I for

Operator

question comes from & Hinman DeForest Walthausen next with Co. Our

DeForest Hinman

for the Thanks questions. taking

Tom Ferguson

DeForest. Hi

DeForest Hinman

we anything? terms of review black share part wrapping you on update like from of you with a or activity buying Can precluded as morning. good the and strategic review. out very repurchase with of know us stock in give Are strategic up outlook kind an A a

Tom Ferguson

DeForest black are We out. actually. that I to shouldn't subject Well a say normal

under we've restrictions but buy to and so aren’t we the they’ve a in on opportunistically. got stock We’re XXbX-X that subject continuing that, plan, some been to market

a as to We’re to as we've XX. evaluating pricing, review part February know the be strategic market of that but post continued the in

DeForest Hinman

Perfect, that's helpful. we're received. any waiting strategic on give up And perspective, something. from color know from perspective just It's a then and you timing us been the a benchmark review on the consultant to already

as board looked at reviewing be it can there helpful something you color would and shareholders. We’re very provide the to any

Tom Ferguson

Yeah, we with a ago. the of our one meeting couple actually had weeks advisors first of in-person

And two fairly that but next or actually review, definitive think knock you with doing by the tighten probably us. know on continue received not we the and one So hopefully give time of still that be we a just work know you dependent had have thorough is you That's – you so. milestones some through streams up going preliminary able summer, analysis. encouraging. process. That'll front kind significant we’ll two three on it's progress least hopefully through review. project board, a the This to actually complex more then know was It’s to the of packages on at We've we're time. I let in and anybody. a We've talk

DeForest Hinman

the like is know wrench completed when this terms Has be be you as with completed. to starting would deadline that. a on consultant, there think some But would given is COVID question to this practically us obviously they final of one a and just yet board really when maybe date things. a you And in Okay.

Tom Ferguson

in stuff how sessions I COVID and being started because mind, to meetings extra time that. like time video was Yeah, in-person of finding be I out much instead able with and going doing involved fact to realizing think frame of and if travel not a to and calls sites

several we've – we've lot So, that being that I got there and are its a believe are of questions think is explored; got work we proceeding. streams at I –

performs, of just so was had not video on and We probably now our I that teleconferences had good face-to-face that meeting, are and of a a lot that just and now like complexities COVID, of customers and operations our businesses the so is on able for a had we safe focus on that take – still are Solutions the off meeting of as focus our it is to – stay and that. focus said, functioning and Because it we before and ago first manufacturing pace. minimize couple weeks maintaining they but the Infrastructure a our next right calls distractions kick care our quarter we’d still there deployments in field a or through that, lot face we our are of operations service with that's making now. sure lot the a

DeForest Hinman

little to keep a steel a I'd it color you, companies you provide earlier comment steel bit related very to reading, a more It up. volumes like are seems if from ask like working availability. been on could And I've to that's of helpful. lot just Okay, what as hard

shortages your got it's it’s not it financially of and helpful. is available? remain Yeah, over or us, that I I be Any in to whether into. a the the elevated. run they unwilling right of for short to those in any appreciation there But Is groups, fabrication know steel into customer starts broadly? so are projects hesitate on or this. think on you some inventory large the know call viable and that of through take it justification all of mid-sized happening a some the be from There's of Is general specific what's – body. prices not. think projects into just are you without getting where geographies color manage I just concern term, you've know so distributors ground able certain its would they types the I perspective available projects some you now, inventory cost commentary places, can bigger may come Some some as delays to you lot terms to the don't lack on provide of very

far So actually anything don't, seen we've canceled. significance I any of don't think I

that's lot – right like inventories of don't they to I of stocking delays get I'm access to just the is stuff to, not it’s think now a beams I it’s So things the a that, and work and think high need. and or just particular the of little some well structural maybe harder – a any issue. steel extra it's more

DeForest Hinman

helpful. today. the Okay, for Thanks that's taking questions

Operator

Noelle a Our next Instructions] with from Dilts question [Operator Stifel. is up follow

Noelle Dilts

again. Thanks

thinking could you for So I about hoping on ’XX. expand two margin the how fiscal a was in the just divisions profile little you're bit

know the bit expectations. in You our a ahead Coatings for came I us think margin Metal of little

So do the kind QX XX% sustained color think the be past. margins there helpful. talked above of you high-end Thanks. that to our range Any about target would you you in XX% of

Philip Schlom

You they're them fact the know, helped time time had they running. are the one think non-recurring that things generally and they some would, one think in fourth but so, I that I quarter,

and that, You know as I'd above are to they are of be XX% going sometimes like XX%, that the, course and the call to so it able they think are of that to it. midpoint pop above range doing be they to in going

help what now right we going, stabilize improve we, end as part towards upper continue those that as not and do, they big Surface a trend that's range. of to think but operations, Technology I is us the of

Philip Schlom

is Phillip. this Noelle, Hi

year. Electrical, know bottom there, we've other the think the last side I late Solutions Infrastructure of seen the and you On

business progress, we'll we'll forward hopefully we stabilized hopefully there improvement some know and see businesses you going and as margin well. these better see are as So

Tom Ferguson

still well that's strategically that divested as be low we right we to. we that and is there double focus back want think the But will, business, size. they think should of to exposure a fluctuation have they that they there margins our have in and can some the you back operating where now particularly digit they're get greater little digit those margin by pulled still tended businesses its of train some if back which than operating logs we as to was single building down pads SMS, bit to Yeah

piece of that’s advantage around just as that as better the we're in and with activity on spread we're U.S. we to the refinery WSI we world think I parts take so So some got world, used dependent we in of and better what we and Industrial a other have the of not the think. the turnaround positioned can

Noelle Dilts

Right.

that’s from Thanks. me. Okay, it

Tom Ferguson

Noelle. Thanks

Operator

Baldwin, Anthony from Bill Securities. with question next Baldwin Our comes

Bill Baldwin

and Tom Hey, good Phil. morning

Tom Ferguson

Hey Bill.

Bill Baldwin

to that Tom, spending outlook next the you indicated to improve your you on that as the grid? business. going be years, continue over looks pretty will good far specific is Infrastructure It particular several for for products from the positive it's think mentioned continued you a grid, you you the grid. the more and that benefit continue primarily Could spending to like be the also as

Tom Ferguson

Oh, well yeah. The enclosures, E-houses are given three locations. positioned really our

then switchgear muni of and know, And well positioned utility we've we up businesses, then switchgears. more like Oshkosh in of Chattanooga Missouri, outside is Switchgears the grade. Pittsburg, the and industrial Kansas. in You the which kind Baltimore, got in Fulton, is more then

COVID locations. driving the disrupted their So operations battery feel The additional on we really we've and range improving operations centers in the we and data about and side E-houses got in are E-house efficiencies, switchgear, so opportunities its – a to of and and able just on coming like have we’re focus bullish we their storage. year, and good the our and products from

we're galvanizing the the bullish renewable get know dip galvanizing very business. just you poles of that's solar, you any it’s for most as as just good hardware hot there, part and, steel into and then soon know our good for you So and and

in a businesses that – benefit, spot, really other so that’s it – know may sweet So right. our systems was little I'd but say so not their that's bit, you

Bill Baldwin

little you benefit of legacy, industrial a can your business. your secondly, electrical traditional and feel also give welding specialty but And more – business, of the international, for outside us

Philip Schlom

We have U.S. of outside much don't the

in the got couple drop drop lot and China. work, been we’ve know the in China, a backlog, a to You in the and China and a reduction big working of on chunk orders last backlogs, for we've taken see new orders years haven't we a the our in

Tom Ferguson

just but so took activity. there one, Well is we

traveling I to think from being that normally you of the be because not restrictions Saudi would just or to happening. travel the U.S. our and China, know competitive executives that's

for So I of creates little a bit a it us. think just, that hurdle

look our the I second are know summer. again up getting So most so for and vaccinated into of travel mentioned you travel as once can I and we as that folks into they quarter, get the opens that probably

Bill Baldwin

in there over and JV still your is it’s Arabia Saudi right, activity, But still...

Tom Ferguson

open It it’s think some see we could would I that there, for and there over that yeah, – is business activity over be good.

Bill Baldwin

So all then. right that could be class the

might kind I … your international all you – some are you considering for – activities throwing you’re be any adders coating at see can know of business or You developments. was thinking interesting what

Tom Ferguson

you U.S. you want Yeah, outside potentially. North know international of if America call, to the

Bill Baldwin

okay. Sure,

to going are North stick you America to outages. So

Tom Ferguson

much. Pretty

Bill Baldwin

right. all Okay,

Tom Ferguson

you Nice talking Bill. to

Bill Baldwin

Thank you.

Philip Schlom

Thanks Bill.

Operator

turn to This concludes I'd remarks. back session. for like question-and-answer closing to Mr. any our call Tom the Ferguson over

Tom Ferguson

normalized look more today, on out thank updates Solutions to as able to work for much forward our talking first looking being progress a call quarter that being on you the first we were finishing effort, well about year. just and forward our out QX the to I evaluation Infrastructure reporting quarter I more and us on our with and as and give last everybody as versus deeper what

forward to a you. update look months. couple of So in Thank that

Operator

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

disconnect. You may now

AZZ (AZZ) 23 Apr 212021 Q4 Earnings call transcript