AZZ - Earnings call transcript Q4 2024

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Operator

Good day, and welcome to the AZZ Inc. Quarter 4 and Year-End Earnings Conference Call and Webcast. [Operator Instructions] Please note, this event is being recorded.

I would now like to turn the conference over to Sandy Martin, Three Part Advisors. Please go ahead.

Sandra Martin

operator. you, Thank thank AZZ's and quarter joining today XXXX. us full Good results you for review XX, February financial which fourth the to year, morning, ended for fiscal and XXXX

are the Schlom, President Philip Officer; of Tom Joining Communication Financial today Ferguson, and Investor Executive Chief Senior Chief Nark, Dave and President and Marketing, Officer; Financial Vice call Relations.

webcast events. be we for questions. the live After found call Please can which www.azz.com/investors- the today's for will prepared call, open remarks, at today's note

Before want forward-looking our made Litigation provisions I XXXX. we today under discussion Private of the harbor that begin, everyone remind to safe will Securities statements include Act of Reform the

By which documents filed control. Exchange annual involve time statements nature, of may Commission, in statements actual are outside to and the Form time containing and the fiscal Except XX-K some uncertainties, Securities detailed forward-looking their risks company's the and year. including from for on the of are results, forward-looking by uncertain for our with AZZ report comments

statements future be guarantees from undue expectations. results Actual Therefore, of differ these could performance. not upon them. not placed should reliance These are materially

for a addition, Non-GAAP financial considered in measures financial release. today's non-GAAP not press you supplement the We measures. measures. to, GAAP call a be should In to non-GAAP refer measures will substitute to GAAP from discuss reconciliation today's earnings

call Tom Ferguson. to turn over would now like the to I

Thomas Ferguson

and an and and us year thank financial was Fiscal exciting AZZ, successful morning, including Good you joining important achievements. for for XXXX several operational today.

hard exceptional year. work accomplishments and for are fiscal We of our the team's proud

the for our highlights. conclude detailed updates. year current and will I discussing before cover line will questions. discuss financial then opening outlook cover Today, the Dave I will quarter will industry full fourth results, by the and Philip

hot North coating market segments, solutions. includes America's Today, company. AZZ in leads our of business a coatings position which galvanizing #X X and dip each pure-play with AZZ metal is coil

the and blue-chip over years customer broad company of base, XX including strategic trusted customers footprint diversified a serves large-scale expertise. also Our long-term brings

Last that year, operational objectives, full exceptionally both provide solutions We quarter report unrivaled fourth the is critical, year. coating and the sustainable team financial pleased our proprietary customer-centric in I to and am segments performed focused technologies. particularly well, on supported by and

results technical uniquely XXXX and reflect and technologies, of the customers that strategically positioned deep placed Our bench generated facilities serve ended longer-term U.S. expanding near- growth, working enhancements that expertise and strategic year capabilities, the to solutions-based and fiscal capital competitive proprietary of and a February sales We're improvements. combination with through across leadership, margin significant extensive moat an talented initiatives Canada.

In fiscal AZZ's XXXX, sheet. reduced we strengthen company's took the and balance to significantly debt action

to focus strong operational our continues of growth collaborative to talented and teams future success. relentless excellence Our culture our and be our supports commitment the

sales we versus year. to year. to fiscal were year. up $XXX XX results prior for XX.X% weeks Precoat's for up were prior Turning sales record compared million, Precoat full Metals included billion. Metal of Coatings by a year. million, XX And XXXX the sales X% the $XXX XX.X% the the to our $X.XX total increased weeks fiscal year prior sales versus

EBITDA adjusted and provided million, million year. the $XXX Our full increased year operations by to we of generated cash for $XXX

discuss of will a uses moments. in We the few cash

to $X.XX, XX% per the year's earnings adjusted previous to EPS. grew Finally, share up almost compared

slower organic entirely Metal to Metals of with X.X%, from which million increased total winter fourth up quarter, fiscal $XXX the is up our X.X% months, construction the activity XXXX sales expansion. during XX.X%, usually and For weakest due Coatings Precoat by

flow for led million. $XX strong of adjusted quarter, by to the we for Also the cash EBITDA operations from per $XX share grew to million. XXX% by earnings to increased adjusted and $X.XX This XX% quarter

for range profitability for quality flow year. XX.X% were sales, result, service the to EBITDA improved our adjusted short, to customer each significant led for continued segment. our XX.X% Precoat and In for full Metal quarter and a Coatings and and Metals cash increased margins delivering targeted As dedication within best-in-class fourth

operational seek business invest with fiscal We to platforms XXXX in integrate also as our we deeply technology our more our in continue to customers.

Coatings segment productivity into projects DGS, Our efficiencies end. and communication better has platform called have Metal customers System, and a from benefit Galvanizing more our effective to Digital beginning from and we their so faster improved or and visibility provided

customers Metals, Precoat coil utilize zone. For

innovative real-time other These run for position on to of service Our business utilize proprietary network a vital provider is highly passion throughout XXX customers North and excellent XX/X across facilities. to a among customers platform, America. metal provides and their information days to coatings Precoat's XX which access, a inventory, teams AZZ help platforms year scheduling basis differentiated daily our

over years catalyst past transformation flow. a generating significantly for and higher X a rate strategic has Our run the been cash EBITDA

to moment, As continue prudently discuss and we Philip capital will AZZ's in strengthen last year. more a balance allocate sheet

over revolver our million or and last loan our repriced lower the reduced have interest to We year term by $XXX costs. debt

deployed plans. project organic in critical schedule. We of significant greenfield on the as growth This aluminum our remains also coil facility to part Missouri, coating funds Washington,

We inorganic creation. our through are as our continue to we our differentiated scaling investing leveraging we AZZ's accelerate growth relentlessly that highly shareholders. for organic plan proposition continually and focused highly and will business customers our in on We We strategy, create believe long-term our by and executing our value value through sustainable value creating solutions. people long-term value to

to Philip. that, I'll over it turn With

Philip Schlom

and everybody. Thanks, morning, Tom, good

of million with fourth fiscal up $XXX mentioned, Metals up $XXX sales last year over XX.X%. X.X% last Tom sales fourth fourth Coatings in to of XXXX Precoat million As quarter sales reported year's Metal the Total we year, X.X% quarter. compared quarter increased

over $XX.X basis million year $XX ago of and improved performance XX.X% prior of segment improved in million or the in Metal or year sales Coatings zinc was by segment costs the profit gross in a lower of sales quarter. lower quarter Metals margins points compared XX.X% result Gross period. a Fourth fourth as with as the overhead costs Precoat XXX

$XX.X center, reclassifying and labor related compared by to increased fourth year our costs. million from the other in included the amortization prior with commercial outstanding quarter. benefited offset of Selling, long in partially profit were in the resolution $XX.X $X.X accruals variable expenses and gross administrative legal quarter Also, The disputes. fourth intangible general million corporate to asset fourth quarter million

improvement million expenses million sales. XX.X% year year's quarter XX the for fiscal quarter fourth to accruals, XX.X% legal fourth X.X% basis of was income been of $XX.X quarter. or of points Excluding sales, compared SG&A from the sales prior or Operating and of $XX.X fourth X.X% would million, in have the quarter XX.X% last an of $XX fourth

discuss The in compared lower outstanding late to Loan the $X.X earnings and compared same year. year million revolving and capital moment. efforts to unconsolidated expense year. of ownership for expectations. due to I facility for a credit interest fourth repricing they Interest the for quarter the as is prior to $XX.X to $X.X AVAIL quarter to the XX% higher subsidiaries last perform was Equity in continue JV company's allocation to in million fourth our debt Term earnings the million, minority and our million the due the quarter will increase in $XX.X increased from B

the to fourth Reported quarter reflecting million Current $XX.X in year. fourth rate rates tax quarter for compared year were quarter, the impact effective net quarter XX.X% compared higher an income during the where million, quarter was prior $X.X was for the of the tax to the much the due of income prior XX.X% in million $X.X prior transformative to activities fourth the M&A year. of

more year, $X.X net up in compared million Adjusted than X.Xx fourth year. prior to quarter the the million for income prior was over the $XX.X

outstanding segment margin our conversion shares as $X.XX, quarter added XX% weighted in -- share to the point convertible EBITDA average to $XX.X driven adjusted adjusted $XX.X of to in XXX computation. Under Coatings or operational shares. are XX.X improved primarily earnings adjusted million by or Metals current and spoke Our The dividends continued year our compared the EBITDA year. assumption, our a preferred in to XX.X% the in the Since sales shares million dilutive improvement quarter are diluting Precoat prior EPS, Metal adjusted earnings million preferred of sales in quarter. Tom quarter of the EPS strong the was preferred compared Fourth adjusted convertible efficiencies diluted the was $X.XX basis earnings company's in fourth for the are adjusted back segment. about, per shares last by full approximately

compared full spoke year. fiscal the ending $X.X prior. Gross points margin efficiencies increased I year a gross million fourth ago, the about sales over in ago improving of sales the the year from Precoat The or XX year operational weeks year only in on our just to same of basis just $XXX weeks during quarter. last XX to XXX the over XX.X% profit were February, the over fiscal For up full include XX.X% sales in results billion,

sales, Operating income percentage SG&A as of on year. improved in par costs from operating last operations the was million or sales basis of of were XX.X% or $XXX.X million XXX $XXX.X million $XXX.X was compared XX.X% SG&A with compared million, last sales of year. sales X.X% to income the from net year. to for points Reported the $XX.X prior continuing income of when year a

share EBITDA in the share of last was prior $XXX.X of million dollars solid which fiscal $XXX.X [ $XXX.X XX% fiscal year, sales for for ] to EBITDA compared $X.XX an million or fiscal improvement year year-over-year. year sales million year, compared income $X.XX to net or the compared the $XX.X Adjusted represents XX.X% Adjusted increase year. of million per prior the EPS was per XX.X% or in XX.X% or a to

cash operations several $XXX.X of we financial position executed year. strong and If as to capital during initiatives working balance flow we I our cash from sheet on $XXX.X flow million the generated now, turn million and of free

from computed million Tom operating maintenance year moments. for typical greenfield to cash few will less is flow $XX.X construction Missouri. including approximately under cover in well aluminum were expenditures. as coating cash as expenditures and $XX.X free in new the million, gross Capital spending flows project plant as Washington, safety, capital the the a Our related activities

related $XXX million, expect million facility complete $XXX construction We the million $XX we as ready we fiscal provided debt site part to reduced be In to of $XX we annual to the million target by the during for million, $XX capital Washington expenditures the including 'XX, and exceeding to million our production. $XXX $XXX approximately guidance. year as million to

overall net under we of debt and ratio leverage target on of stated debt X.Xx, leverage Additionally, goal of originally reduction, working focus our getting strong in with exceeded 'XX, reaching with a by back X. May capital, leverage our --

and $XXX by In reducing XX last addition, credit successfully our loan percentage March basis B term twice facility, B year, repriced time in in margin revolving X term 'XX August our and million point a total repricing reduction. points loan the 'XX, we again during the our repriced each for

December XXXX, basis SOFR margin. ratio -- XXX another moved SOFR SOFR in margin facility margin repriced year-end plus 'XX, February X, credit we which us credit to a or XX go-forward Additionally, rate in we of at below our tiered revolving to point reduction with fixed plus XXX of leverage revolving expect SOFR our from grid pricing be being rate our

to addition, the we May increase our BB- acknowledging have and In rating, Precoat minus rating the B] in X-notch a pleased debt very progress made the secured coverage on senior Metals a XXXX. S&P since B, of Fitch from we of acquisition are Global share company that with from similar upgraded [X initiated Ratings

foundation as structure debt forward position with our a until and XXXX. move strong no liquidity capital provides maturities strong remains Our we

variable fixes agreement the more continue debt. We than rate half under be that of to swap a

to we dividends debt share turn year I'd $XX.X common repurchases like Finally, We the to during the preferred we and no year. With since paid David made for on the totaling reduction. that, over million focus stock Nark. call cash on

David Nark

uniquely serve morning, Good scale, differentiated everyone. and in market customer-centric Philip. by the American technology AZZ's highly and value-added Tom Metal segments to today's describing expertise that steel North you, Thank X aluminum #X markets. Coatings began discussion position provide positioned

customers' services of extend sustainable, provide products materials that process. our life Our friendly through coating the environmentally solutions our specialized

as well plastics to from renewables infrastructure positioned related North investments, conversions manufacturing to reshoring and to benefit and the Our business growth secular drivers important is American U.S. aluminum. from as well

which Looking back favorably concluded fiscal in both February, the impacted fourth from at industry. quarter, warmer weather construction benefited unseasonably our that segments

and the transmission interstate Regarding a our by ramp continued projects and activity highway of end Metal markets, in and robust Coatings was quarter. supported bridge distribution

with Acts, projects impact beneficial CHIPS and see tailwinds closely to critical to associated the our tied infrastructure AIIJA which results. positively continue We

budgets states. as We funding, We uptick are the in are a the evidenced of federal signs of are seeing monies of ramp-up flowing XX in Department DOT announcements by all in the believe Commerce XXXX infrastructure that by available cadence in and Energy, and award Transportation.

Going plant expect quarters. elevated in related our and we chip forward, highway, an centers work number T&D, to future bridge data projects of and

projects of U.S. and T&D, America. October are for across reliability electric $X.X XX investments resilience grid Department XX encouraged up of announcement partnership states of Within Within bridge hot-dip $X.X projects specifically where which this by resilience steel to strengthen Energy's different to the by Department and are program and the encouraged billion we in highway, grid more commonly of galvanized by innovation funding and we the than resilience, XX is across projects. these to grid infrastructure relate XX used. of is Transportation January announcement for billion

Samsung last construction the the Ohio, sector, in for Intel loans to Mexico billion develop will and Oregon. Texas. the direct as Texas manufacturing plants funding to administration manufacturing week, factories as administration announced X announced Arizona, include cluster New computer direct a $XX R&D for and In as facility an and in here research in to Electronics $X.X billion in to up chip cluster well manufacturing the as and funding $X.X packaging up recently in computer And billion of facility. Samsung's chip

is either galvanizing have operational in operational being first Both Samsung projects are currently coating hot-dip facility with we the XXXX. expected second solutions. and or to in are actively that The XXXX, Intel providing or coil be

pockets rebound markets to continue solar the renewables far. with been strength we States, a have announced $XX planned of investments so where from billion end Lastly, nearly in slight see regional across United and

projects conversion growing value in fourth our paint segment Volume selling pricing. based mix outsource than market decided rebound quarter Precoat market a [ companies captive categories. with performance, gains, to quarter the from The and slight to and better fourth especially appliances on Metals and favorable helped in coating volumes continued that perform the to services. these continued the and ] construction win Freeco coil lines

spending Nonresidential improvements, category offset private some Although compared include public for projects, XXXX the building year. has the calendar in in nonresidential construction continues container construction perform manufacturing transportation to call spending and pressure agriculture. to under construction year-over-year continued smaller and significant higher construction which the be construction manufacturing last with volumes, and well strength the Projections to by for quarter, increases. spending

saw about steel you raised expectations to guidance, As optimistic from transition aluminum. manufacturing, our long-term remain prepainted the the and and we reshoring for

North aluminum America. We in the also category see plastics a from container steady to movement throughout

gains progress Our to to galvanizing teams business. Precoat hot-dip Metals incremental coil in with both Metal like with back customers Coatings new to continue coating and our and With solid make I'd over market share that, turn it Tom.

Thomas Ferguson

year XXXX Thanks, Dave. the company. a pivotal Fiscal was for

the Our to throughout prudently XXXX. AZZ by forward and cash Improving deploying our well. high-return focusing continue operations, customers fiscal projects teams drive strategy on on serving

leaders both expectations. further cash our demonstrated drove we I'm and operations The position. ahead while to proud as and of efficiencies down generated operational from financial they of and the improved significant paid who collectively passion margins growth enhance company's strengthen organic debt company pride

a as trailing EBITDA ability debt our net We our XX% management million. cash well at $XXX ended EBITDA to testament grow year to discipline X.XXx, our by adjusted last year as with to the to which is

superior with to We customers with trust service continue and to as build partner quality our them we levels. provide

business important that to Metal enhance longevity provide and Our essential and appearance an sustainable infrastructure products solutions segments of everyday the building life. Coatings

services the solutions and sustainability. fact that enjoy We are synonymous our with

enter we its the mentioned, particularly strongest. our months spring positive, business when outlook as activity As is construction at summer Dave is and

Our expected teams benefit grow to are positioned share to find ways of market spending. from infrastructure ramp-up new and the

footprint. are the market however this and shapes Given both broad positioned well We in year. our AZZ's scale we up economy are believe strong strategic positions segments for

totaling turnover pain will of Since shifts, macroeconomic and to demand business, nimble we inventories whether we impacts. if other from zinc ago. to or employee adjust year a and remain improve Labor a initiatives due our and are continues growth

underway installation in Our in and Missouri greenfield inside to progressing electrical schedule. tracking has aluminum the building coating line and -- coating facility the installation shifted process. Work coil the with coating the well the of of is on

turning third staffing, it a weeks raised the the in our now today. our line of are now. exciting It's couple reiterating and is just coating commissioning begin quarter hot our qualification focus to months to a from guidance think few and testing We will of Our that efforts. ago

XXXX million million in related at $X.XXX billion range and million EBITDA is $X.XXX are to the expenditures this to $XXX reduction fiscal current is planned $XX in be EPS unchanged our to range year the new million expected $XXX to debt for $XX $XX in $XX million, billion to The to and Our interest of guidance $XXX million minority in the million remain plant. guidance venture the expected million to sales earnings adjusted million including $XX for to $XXX year adjusted $X. Capital to and $X.XX Washington, joint the to available is $XX range. from the million Missouri equity fiscal

focused remain on acquisition to pipeline. the beginning seeing are we enter some will we While small paying opportunities debt, galvanizing down

dedicated thank value we the I to we fiscal work are new accomplishments ourselves as strong shareholder already are fiscal we their in generates them through cash are first Our year, begin significant and well want quarter we deliver operating XXXX. and believe to maximize flow for and and find past year, halfway confidently teams as hard positioned results. energized our this

open for the would operator, questions. up please Now, the call

Operator

Pipes Instructions] [Operator with The question Lucas first B. Riley comes from Securities.

Lucas Pipes

or to And My do hold cash wondered getting balance on where more side? to there, I sheet. on little you more do the is Coatings the with And on first bit plan side the this, about question see acquisitions? ratio leverage And so, maybe balance you the Metal think the if you on job X.Xx. Good do Precoat a sheet? opportunities

Philip Schlom

sheet to is excess and reduce operate low the on we done start, revolver. the we've balance the use Tom, what question. cash can borrowings pretty with cash I balances typically,

about $XXX at the million have million capacity We the revolver end of with in year. $XXX

to So Tom? the credit facility. was smaller we you, Tom through the fund should revolving able to bolt-on acquisition, speaking be

Thomas Ferguson

Lucas, have look our off I the expect would team to likes those right -- naturally, above how a is that active couple of of our that that popped at. And think fund we sites will bolt-on but EBITDA there's No kind revolver. those to of Yes. now, galvanizing potential we'd we're have what the up idea opportunities be, seeing multiple. but good one-off

So...

Lucas Pipes

you would [indiscernible]. volume for sense Got what it. or bolt-on of just you And mentioned you get when trying I'm consider level a to EBITDA to up consider bolt-on? would

Thomas Ferguson

typically $XX million to These the in $XX are side. million revenue

usually, well, say, -- or or So they're We EBITDA. to tend have, X going million million X $X probably yes, $X roughly to pay of Xx.

we what that's strong then consider bolt-on. good anticipate in basis first we And range. improvement often XXX,XXX year synergies the our team, point So

Lucas Pipes

Very here. in? to year you realistic helpful. of think are do those this fiscal for And tuck many How

Thomas Ferguson

there been in Last hasn't -- were we down There mode. year, the of acquisition any. flag taken out we course, we've that

of to needs. So our anticipated, think under I know paying funding we've and be focused facility debt let gotten going we've Xx kind that Washington on that quicker normal we're in our as CapEx down while still folks the we'd debt, than

due we usually times recently kind from just to that cycle active when become they So These of we're let able to interested again. diligence X-month and out to close. we're X- have when it

That'd X. or about X it. maybe So be

Lucas Pipes

maybe that you some mentioned? round factor of would out That's these where very organic think helpful. growth, of to in kind on vis-a-vis the conversation growth. Do bolt-ons just you about And

Thomas Ferguson

Yes.

Metal side, still GDP. run to Coatings think I particularly -- tends organic we growth, with on the our normal

run So can full when X% year X% that's on basis. a another acquisitions, couple to get we or add of a rate going

X% I things we've quarter. feel going up as improving side, are Precoat we on. in the X got we One, volumes volume. on On believe were about saw fourth the we

Precoat have next growth. which volumes So Washington year, we to on site finish the into we're organic up that's nice get start calendar the side, into And gives when as then year, next online. coming year, this out seeing us pick get we'll the

and So EBITDA growth. some revenue let's not provide additional

Operator

with Company. question & comes John from Franzreb Sidoti next Our

John Franzreb

in good another revenue I'd profile quarter. on fourth with the Congratulations to start quarter. the like

a, into You of and things. business the able of if that X thing guidance because seasonal case, suggested was fourth revenue? pulled quarter; there that that more the suggests that b, maintaining on I'm from unusually That a the first a to positive some and was quarter backfill warm is you're suggests, that was basis. actually wondering

Thomas Ferguson

John. That's a point, good

months as on of what yes, start. earlier of fall. -- a quarter, side, I normal there's would And active. as pull on think sure construction -- of see -- the Hopefully, and ramp-up. in terms Metal the so little projects but the an that's some then getting cycle, buildup first the in get we so some in we summer whole in I among additional side, I'm and that It summer ordering a not potentially bit pipeline Precoat pulled from the lot Coatings of into our some on yes, did into inventory that customers. come kind stay depends the

guidance the And as So yes, we on. as to solid. traditionally, the feel continue conservative. And is update that like be we we'll year then to try goes

John Franzreb

share Fair a And the was there market on bit and pre-code getting you're Can share about . side. press gains mentioned talk release, you from? gains it in also you little the where the market enough.

David Nark

this is John, Yes, Dave.

it, segment. we're market in Also another in believe some in and seeing as we're we're the We outperforming outperforming place. there's market taking the where seeing at think you is I markets a construction some area the the end couple improvement. conversions of look areas appliance where

the I'd So areas to. those main point are X

John Franzreb

one the last get in And Okay. queue. question, and I'll back

Metal in What's that? benefited little the that in to the of bit going Can talked Is go side Coatings MC? a zinc on on prices? about the initiative pricing quarter. you You initiatives front on the pricing on just business response deeper

Thomas Ferguson

Yes.

tried to help. our it up. been trending pricing have zinc, always has talk how I differentiate Zinc think does we've versus about to but tried value we

our levels. zinc help to as price tends so And that trends support up,

that that income per our will. anywhere also to more and transportation price add hundredweight, I also more revenue if adds that basically to able you continue responsive, and just but and so flow-through adding we services think increases from we're be

well. all -- think bode things those have they I So

We have another late added year. We spend last improved. line also

and higher per hundredweight. to benefit tends the of tends be per to getting actually we're at So that, price It piece. that a be priced

that So have us, this forward all hope as we from continue those things to we to year. benefited benefit are and go

Operator

with from The comes Thalhimer Adam Davis. next Thompson, question

Adam Thalhimer

your And a margins there's Philip, congrats on on points your how Congrats fiscal for fiscal were In trend basis gross in 'XX, so 'XX. XXX strong more up room retirement. quarter. Coatings, that Metal in if might improvement? Curious

Thomas Ferguson

our I we lot are to we those think margin then -- this from We teams tactics and and leadership improvements a continue and playbooks. the talk the should using. DGS hold we continue believe and about benefiting hopefully benefit from that, and benefit that in to we're various

I So we with up, as volumes the team. as . long we And drive those hold margins. confident feel can pretty believe

Adam Thalhimer

And or November between you it in then Precoat pre-code, just February this in had and a like seasonality really at is good normal quarter sounded also Okay. February?

Thomas Ferguson

We did.

of quarter, we by also, fourth good of and operating So were inventory, we good, just think Precoat. we mentioned got -- that performance year, as than is, a part But was out lot this lighter we into the fiscal winter team normal. last yes, I had the a customer where in carrying it cleaned

just normal us and -- productivity volume, volume the pop through, this tend margins the of to flows benefit allows inventories efficiency customer I kind nicely. when And quarter, was it facilities, get our to we in start then sitting then to think so fourth which of drive and those

Adam Thalhimer

like interest tax and forecast the have guys an guidance? in you embedded do expense then that's actual And Okay. rate

Philip Schlom

curve mean on our at interest rates. forward I do. the look we We

expecting So . part X this able everybody have wouldn't reprice original we been X just our there got in out 'XX, out like year else which cuts to than we're we're of here and forecast there, to March

Thomas Ferguson

Well, have don't factored we cuts in.

curve. forward the Just

Philip Schlom

have stat it rate, XX% on then so we North we're and to then call And America, X% primarily tax X%. the X.X%, a rate, X%,

utilize. So XX.X% tax that's to what of we is XX% rate kind

Operator

Our with Kansas John City Capital. comes next from question Braatz

Jon Braatz

talk there little you a as up, costs little margins for you And a on to Washington, maybe can is bit can what Tom, Missouri, this production? absorbing prior year? you're about you fiscal start-up ramp costs a of say or drag about bit

Thomas Ferguson

No, there shouldn't be.

that there, budgets And for going all in too. got a up. got to contingency bit we're little we've think our I in we've plan naturally, ramp of how

we've committed. to the producing whether got of online, and been some decisions just we start at So normal in and year. actually the line end tested carry customer we gets as comes demand meet the Or make whether out that's the

but in that case, either drag. be don't to a -- I for look So

an So there should be opportunity. .

Jon Braatz

the is how at much of And production this Okay. committed point?

Thomas Ferguson

is contractually how -- kind is, that of built XX% that fact committed, we've and that's how ends. model in what and the we

XX% So liked would that made this although that the got case, in customer to have go actually we've sell, have commitment XXX% to had of it.

got month so. we've here to upside we with this announce customer, hope next which So in the or

ability us other there's that. the to then secondly, to chase that And does give I go it opportunity -- of some business, which always do half like

Jon Braatz

committed customer? see you XX%? I be most, now? You're the you Okay, one at would like XX% what mean, by XX%, to At would

Thomas Ferguson

so. X-year another plant so but we Louis have does but much to because do on that contractual I St. do obviously, arrangement. it's I one another it's line aluminum customer, well, speak. that smaller hesitate concerned, too, And have always with Yes, in business, actually. a this think a that case, less dependent get we -- in I'm capability, to

So we between both balance and do that have up to that we make opportunity sure business plants. pick it

Operator

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

Thomas Ferguson

your for you time Thank today.

in a our you on look results months. first to As I our tell, and quarter about just you excited few forward can future, updating we're

Operator

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

You now may disconnect.

AZZ (AZZ) 22 Apr 242024 Q4 Earnings call transcript