TEXAS
|
75-0948250
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
One
Museum Place, Suite 500
|
||
3100
West Seventh Street
|
||
Fort
Worth, Texas
|
76107
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Title of each class
|
Name
of each exchange on which registered
|
|
Common
Stock, $1.00 par value per share
|
New
York Stock Exchange
|
Yes
£
|
No T
|
Yes
£
|
No T
|
Yes
T
|
No £
|
Yes
£
|
No T
|
Large
accelerated filer £
|
Accelerated
filer T
|
Non-accelerated
filer £
|
Smaller
Reporting Company £
|
Yes
£
|
No T
|
Document
|
Parts Into Which
Incorporated
|
|
Annual
Report to Shareholders for the Fiscal Year Ended 2009 (Annual
Report)
|
Parts
[I, II, and IV]
|
|
Proxy
Statement for the Annual Meeting of Shareholders to be held July
14,2009 (Proxy Statement)
|
Part
III
|
PART
I
|
1
|
|||
Business
|
1
|
|||
Risk
Factors
|
5
|
|||
Unresolved
Staff Comments
|
8
|
|||
Properties
|
9
|
|||
Legal
Proceedings
|
10
|
|||
Submission
of Matters to a Vote of Security Holders
|
10
|
|||
PART
II
|
10
|
|||
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
10
|
|||
Selected
Financial Data
|
12
|
|||
Management’s
Discussion and Analysis of Financial Condition and Results of
Operation
|
12
|
|||
Quantitative
and Qualitative Disclosures About Market Risk
|
22
|
|||
Financial
Statements and Supplementary Data
|
23
|
|||
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
23
|
|||
Controls
and Procedures
|
23
|
|||
Other
Information
|
23
|
|||
PART
III
|
24
|
|||
Directors,
Executive Officers and Corporate Governance
|
24
|
|||
Executive
Compensation
|
24
|
|||
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
24
|
|||
Certain
Relationships and Related Transactions, and Directors
Independence
|
26
|
|||
Principal
Accountant Fees and Services
|
26
|
|||
PART
IV
|
26
|
|||
Exhibits
and Financial Statement Schedules
|
26
|
|||
27
|
Name
|
Age
|
Business
Experience for Past Five Years
Position or Office with Registrant or Prior
Employer
|
Held Since
|
David
H. Dingus
|
61
|
President
and Chief Executive Officer
|
2001
|
Dana
L. Perry
|
60
|
Senior
Vice President of Finance, Chief Financial Officer and
Secretary
Vice
President of Finance, Chief Financial Officer, Asst. Sec.
|
2004
1992-2004
|
John
V. Petro
|
63
|
Senior
Vice President, Electrical & Industrial Products
Vice
President Operations, Electrical & Industrial Products
|
2006
2001-2006
|
Clement
H. Watson
|
62
|
Vice
President Sales, Electrical Products
|
2000
|
Jim
C. Stricklen
|
60
|
Vice
President, Business and Manufacturing Systems
Vice
President, Assist Connectivity Technology
|
2004
2001-2003
|
Tim
E. Pendley
|
47
|
Senior
Vice President, Galvanizing Services Segment
Vice
President Operations, Galvanizing Services Segment
Division
Operations Manager
|
2009
2004-2009
1999-2004
|
Richard
W. Butler
|
43
|
Vice
President, Corporate Controller
Corporate
Controller
|
2004
1999-2004
|
Ashok
E. Kolady
|
35
|
Vice
President, Business Development
Operation,
Marketing, & Business Development, Eaton Corp
Process
Improvement Lead, General Motors Corporation
|
2007
2004-2007
1999-2004
|
John
Lincoln
|
47
|
Vice
President, Galvanizing Northern Operations
South
Central Regional Manager, AGS
Executive
Vice President, North American Galvanizing
|
2009
2006-2009
1999-2006
|
Bryan
Stovall
|
45
|
Vice
President, Galvanizing Southern Operations
SE
and TX Coast Region Manager, AGS
SW
Region Manager, AGS
|
2009
2007-2009
2001-2007
|
Bill
Estes
|
44
|
Vice
President – Electrical and Industrial Products
General
Manager - CGIT and The Calvert Company
General
Manager – CGIT
|
2009
2004-2009
2001-2004
|
John
Petitto
|
64
|
Vice
President – Electrical and Industrial Products
General
Manager – Central Electric Manufacturing Co.
|
2009
2003-2009
|
Francis
D. Quinn
|
43
|
Vice
President – Human Resources
Vice
President – Benefits and Compensation, Americredit Corp.
Assistant
Vice President – Benefits, Americredit Corp.
|
2009
2004-2008
1999-2004
|
SEC
Public Reference Room
|
|
100
F Street, N.E.
|
|
Washington,
D.C. 20549
|
Public
Reference Section
|
|
Securities
and Exchange Commission
|
|
100
F Street N.E.
|
|
Washington,
D.C. 20549
|
http://www.sec.gov
|
http://www.azz.com
|
New
York Stock Exchange
|
|
20
Broad Street
|
|
New
York, New
York 10005
|
http://www.azz.com
|
AZZ
incorporated
|
|
Investor
Relations
|
|
One
Museum Place, Suite 500
|
|
3100
West Seventh Street
|
|
Fort
Worth, TX 76107
|
|
·
|
political
and economic instability;
|
|
·
|
social
unrest, acts of terrorism, force majeure, war or other armed
conflict;
|
|
·
|
inflation;
|
|
·
|
currency
fluctuation, devaluations and conversion
restrictions;
|
|
·
|
governmental
activities that limit or disrupt markets, restrict payments or limit the
movement of funds; and
|
|
·
|
trade
restrictions and economic embargoes by the United States or other
countries.
|
|
·
|
difficulties
in the integration of operations and
systems;
|
|
·
|
the
termination of relationships by key personnel and customers of the
acquired company;
|
|
·
|
a
failure to add additional employees to handle the increased volume of
business;
|
|
·
|
additional
financial and accounting challenges and complexities in areas such as tax
planning, treasury management and financial
reporting;
|
|
·
|
risks
and liabilities from our acquisitions, some of which may not be discovered
during our due diligence;
|
|
·
|
a
disruption of our ongoing business or an inability of our ongoing business
to receive sufficient management attention;
and
|
|
·
|
a
failure to realize the cost savings or other financial benefits we
anticipated.
|
|
·
|
the
timing and volume of work under new
agreements;
|
|
·
|
general
economic conditions;
|
|
·
|
the
budgetary spending patterns of
customers;
|
|
·
|
variations
in the margins of projects performed during any particular
quarter;
|
|
·
|
losses
experienced in our operations not otherwise covered by
insurance;
|
|
·
|
a
change in the demand or production of our products and our services caused
by severe weather conditions;
|
|
·
|
a
change in the mix of our customers, contracts and
business;
|
|
·
|
a
change in customer delivery
schedule;
|
|
·
|
increases
in design and manufacturing costs;
and
|
|
·
|
abilities
of customers to pay their invoices owed to
us.
|
|
·
|
attract
new customers, internationally and
domestically;
|
|
·
|
increase
the number or size of projects performed for existing
customers;
|
|
·
|
hire
and retain employees; and
|
|
·
|
increase
volume utilizing our existing
facilities.
|
Location
|
Land/Acres
|
Buildings/Sq. Footage
|
Segment/Occupant
|
||||||
Crowley,
Texas
|
29.7 | 201,000 |
Electrical
and Industrial Products
|
||||||
Houston,
Texas
|
5.4 | 61,600 |
Electrical
and Industrial Products
|
||||||
Richland,
Mississippi
|
6.7 | 58,700 |
Electrical
and Industrial Products
|
||||||
Pittsburg,
Kansas
|
15.3 | 87,800 |
Electrical
and Industrial Products
|
||||||
Medway,
Massachusetts
|
- |
(Leased) 80,900
|
Electrical
and Industrial Products
|
||||||
Fulton,
Missouri
|
- |
(Leased)
126,300
|
Electrical
and Industrial Products
|
||||||
Tulsa,
Oklahoma
|
- |
(Leased) 66,000
|
Electrical
and Industrial Products
|
||||||
Greenville,
South Carolina
|
- |
(Leased) 51,000
|
Electrical
and Industrial Products
|
||||||
St.
Catharines, Ontario
|
4.57 | 47,500 |
Electrical
and Industrial Products
|
||||||
Crowley,
Texas
|
28.5 | 79,200 |
Galvanizing
Services
|
||||||
Houston,
Texas
|
25.2 | 61,800 |
Galvanizing
Services
|
||||||
Waskom,
Texas
|
10.6 | 30,400 |
Galvanizing
Services
|
||||||
Beaumont,
Texas
|
12.9 | 33,700 |
Galvanizing
Services
|
||||||
Moss
Point, Mississippi
|
13.5 | 16,000 |
Galvanizing
Services
|
||||||
Richland,
Mississippi
|
5.6 | 22,800 |
Galvanizing
Services
|
||||||
Citronelle,
Alabama
|
10.8 | 34,000 |
Galvanizing
Services
|
||||||
Goodyear,
Arizona
|
16.8 | 36,800 |
Galvanizing
Services
|
||||||
Prairie
Grove, Arkansas
|
11.5 | 34,000 |
Galvanizing
Services
|
||||||
Belle
Chasse, Louisiana
|
9.5 | 34,000 |
Galvanizing
Services
|
||||||
Port
Allen, Louisiana
|
22.2 | 48,700 |
Galvanizing
Services
|
||||||
Cincinnati,
Ohio
|
15 | 81,700 |
Galvanizing
Services
|
||||||
Muncie,
Indiana
|
6.6 | 50,200 |
Galvanizing
Services
|
||||||
Plymouth,
Indiana
|
40 | 42,900 |
Galvanizing
Services
|
||||||
Joliet,
Illinois
|
12 | 113,900 |
Galvanizing
Services
|
||||||
Dixon,
Illinois
|
21.3 | 59,600 |
Galvanizing
Services
|
||||||
Peoria,
Illinois
|
7.4 | 297,600 |
Galvanizing
Services
|
||||||
Peoria,
Illinois
|
- |
(Leased)
66,400
|
Galvanizing
Services
|
||||||
Chelsea,
Oklahoma
|
15 | 30,700 |
Galvanizing
Services
|
||||||
Winsted,
Minnesota
|
10.4 | 81,200 |
Galvanizing
Services
|
||||||
Hamilton,
Indiana
|
49.3 | 110,700 |
Galvanizing
Services
|
||||||
Fort
Worth, Texas
|
- |
(Leased)
27,100
|
Corporate
Offices
|
Market
for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities.
|
Quarter
Ended
May
31,
|
Quarter
Ended
August
31,
|
Quarter
Ended
November
30,
|
Quarter
Ended
February
28/29,
|
|||||||||||||||||||||||||||||
Per
Share
|
2008
|
2007
|
2008
|
2007
|
2008
|
2007
|
2009
|
2008
|
||||||||||||||||||||||||
High
|
$ | 39.20 | $ | 34.62 | $ | 48.50 | $ | 41.45 | $ | 45.14 | $ | 37.41 | $ | 28.97 | $ | 37.50 | ||||||||||||||||
Low
|
$ | 26.15 | $ | 18.33 | $ | 30.67 | $ | 27.14 | $ | 15.09 | $ | 24.41 | $ | 17.67 | $ | 25.85 | ||||||||||||||||
Dividends
Declared
|
- | - | - | - | - | - | - | - |
Symbol
|
CRSP Total Returns Index
for:
|
2/04
|
2/05
|
2/06
|
2/07
|
2/08
|
2/09
|
—— |
AZZ
incorporated
|
100.00
|
101.25
|
142.45
|
253.11
|
442.65
|
252.91
|
– – –
|
CRSP
Index for NYSE Stock Market (US Companies)
|
100.00
|
109.09
|
120.28
|
137.25
|
132.41
|
74.11
|
········
|
CRSP
Index for NYSE Stocks (SIC 5000-5099 US Companies)
|
100.00
|
119.90
|
165.92
|
177.71
|
165.84
|
90.30
|
Wholesale
trade - durable goods
|
Fiscal
Year
|
||||||||||||||||||||
2009
(a)
|
2008
|
2007
(c)
|
2006
|
2005
|
||||||||||||||||
(In
thousands, except per share amounts)
|
||||||||||||||||||||
Summary
of operations:
|
||||||||||||||||||||
Net
sales
|
$ | 412,364 | $ | 320,193 | $ | 260,344 | $ | 187,184 | $ | 152,428 | ||||||||||
Net
income
|
42,206 | 27,688 | 21,604 | 7,827 | 4,812 | |||||||||||||||
Earnings
per share:
|
||||||||||||||||||||
Basic
earnings per common share(b)
|
$ | 3.48 | $ | 2.30 | $ | 1.86 | $ | .70 | $ | .44 | ||||||||||
Diluted
earnings per common share(b)
|
3.43 | 2.26 | 1.82 | .69 | .44 | |||||||||||||||
Total
assets
|
$ | 354,715 | $ | 193,319 | $ | 200,908 | $ | 141,026 | $ | 128,635 | ||||||||||
Long-term
debt
|
100,000 | - | 35,200 | 14,375 | 23,875 | |||||||||||||||
Total
liabilities
|
167,604 | 47,163 | 89,759 | 53,758 | 53,316 | |||||||||||||||
Shareholders'
equity
|
187,112 | 146,157 | 111,148 | 87,269 | 75,319 | |||||||||||||||
Working
capital
|
123,652 | 60,299 | 62,252 | 27,917 | 24,839 | |||||||||||||||
Cash
provided by operating activities
|
$ | 60,196 | $ | 38,926 | $ | 6,928 | $ | 12,794 | $ | 6,471 | ||||||||||
Capital
expenditures
|
20,009 | 9,926 | 10,659 | 6,602 | 6,649 | |||||||||||||||
Depreciation
& amortization
|
14,528 | 8,199 | 6,660 | 5,720 | 5,653 | |||||||||||||||
Cash
dividend per common share
|
- | - | - | - | - | |||||||||||||||
Weighted
average shares outstanding (b)
|
12,140 | 12,013 | 11,599 | 11,168 | 10,888 |
(a)
|
Includes
the acquisition of AAA Industries, Inc. on April 1, 2008 and Blenkhorn and
Sawle on July 1, 2008.
|
(b)
|
Adjusted
to reflect a two-for-one stock split, effective in the form of a stock
dividend on May 4, 2007.
|
(c)
|
Includes
the acquisition of Witt Galvanizing, Inc. on November 1,
2006.
|
Management's
Discussion and Analysis of Financial Condition and Results of
Operation.
|
Period
Ended
|
Period
Ended
|
|||||||||
Backlog
|
2/29/08
|
$ | 134,876 |
2/28/07
|
$ | 120,666 | ||||
Bookings
|
439,075 | 334,403 | ||||||||
Acquired
Backlog
|
13,244 | 0 | ||||||||
Shipments
|
412,364 | 320,193 | ||||||||
Backlog
|
2/28/09
|
$ | 174,831 |
2/29/08
|
$ | 134,876 | ||||
Book
to Ship Ratio
|
1.06 | 1.04 |
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Revenue:
|
||||||||
Electrical
and Industrial Products
|
$ | 225,797 | $ | 179,181 | ||||
Galvanizing
Services
|
186,567 | 141,012 | ||||||
Total
Revenue
|
$ | 412,364 | $ | 320,193 |
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Segment
Operating Income:
|
||||||||
Electrical
and Industrial Products
|
$ | 38,952 | $ | 29,158 | ||||
Galvanizing
Services
|
53,183 | 35,087 | ||||||
Total
Segment Operating Income
|
$ | 92,135 | $ | 64,245 |
Period
Ending
|
Period
Ending
|
|||||||||
Backlog
|
2/28/07
|
$ | 120,666 |
2/28/06
|
$ | 73,765 | ||||
Bookings
|
334,403 | 307,245 | ||||||||
Shipments
|
320,193 | 260,344 | ||||||||
Backlog
|
2/29/08
|
$ | 134,876 |
2/28/07
|
$ | 120,666 | ||||
Book
to Ship Ratio
|
1.04 | 1.18 |
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Revenue:
|
||||||||
Electrical
and Industrial Products
|
$ | 179,181 | $ | 150,250 | ||||
Galvanizing
Services
|
141,012 | 110,094 | ||||||
Total
Revenue
|
$ | 320,193 | $ | 260,344 |
2008
|
2007
|
|||||||
(In
thousands)
|
||||||||
Segment
Operating Income:
|
||||||||
Electrical
and Industrial Products
|
$ | 29,158 | $ | 21,301 | ||||
Galvanizing
Services
|
35,087 | 31,945 | ||||||
Total
Segment Operating Income
|
$ | 64,245 | $ | 53,246 |
Operating
Leases
|
Debt
|
Interest
|
||||||||||
(In
thousands)
|
||||||||||||
2010
|
$ | 3,701 | $ | - | $ | 6,240 | ||||||
2011
|
3,937 | - | 6,240 | |||||||||
2012
|
3,275 | - | 6,240 | |||||||||
2013
|
2,811 | 14,286 | 5,794 | |||||||||
2014
|
2,690 | 14,286 | 4,903 | |||||||||
Thereafter
|
14,192 | 71,428 | 11,143 | |||||||||
Total
|
$ | 30,606 | $ | 100,000 | $ | 40,560 |
|
·
|
Volatility
of our stock price
|
|
·
|
Expected
term of the option
|
|
·
|
Expected
dividend yield
|
|
·
|
Risk-free
interest rate over the expected
term
|
|
·
|
Expected
forfeitures
|
(a)
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights
|
(b)
Weighted
average exercise price of outstanding options, warrants and
rights
|
(c)
Number
of securities remaining available for future issuance under equity
compensation plans (excluding shares reflected in column
(a))
|
||||||||||
Equity
compensation plans approved by shareholders (1)
|
607,070 | (2) | $ | 17.87 | 710,095 | (3) | ||||||
Total
|
607,700 | $ | 17.87 | 710,095 |
|
(1)
|
Consists
of the Amended and Restated 2005 Long-Term Incentive Plan, and 2001
Long-Term Incentive Plan.. See Note 9, “Stock Options and Other
Shareholder Matters” to our “Notes to Consolidated Financial Statements”
for further information.
|
|
(2)
|
The
average term of outstanding options and stock appreciation rights is 2
years.
|
|
(3)
|
Consists
of shares remaining available for future issuance under the Amended and
Restated 2005 Long-Term Incentive Plan of 498,951 shares
and 2001 Long-Term Incentive Plan of 211,144
shares
|
|
A.
|
Financial
Statements
|
|
1.
|
The
financial statements filed as a part of this report are listed in the
“Index to Consolidated Financial Statements” on page
28.
|
|
2.
|
Financial
Statements Schedules
|
|
B.
|
Exhibits
Required by Item 601 of Regulation
S-K
|
AZZ
incorporated
|
||
(Registrant)
|
Date:
5/8/2009
|
By:
/s/ David H.
Dingus
|
|
David
H. Dingus, Principal Executive Officer and
Director
|
/s/David H. Dingus
|
/s/ Dana L. Perry
|
||
David
H. Dingus, Principal Executive Officer and Director
|
Dana
L. Perry, Principal Financial Officer and Director
|
||
/s/Daniel R. Feehan
|
/s/ Richard Butler
|
||
Daniel
R. Feehan, Director
|
Richard
Butler, Vice President and Controller, Principal Accounting
Officer
|
||
/s/Martin C. Bowen
|
/s/Peter A. Hegedus
|
||
Martin
C. Bowen, Director
|
Peter
A. Hegedus, Director
|
||
/s/Daniel E. Berce
|
/s/Dr. H. Kirk Downey
|
||
Daniel
E. Berce, Director
|
Dr.
H. Kirk Downey, Chairman of the Board and Director
|
||
/s/Sam Rosen
|
/s/Kevern R. Joyce
|
||
Sam
Rosen, Director
|
Kevern
R. Joyce, Director
|
||
Page
|
||||
1
|
Consolidated
Financial Statements
|
|||
Management’s Report on Internal Controls Over
Financial Reporting
|
29
|
|||
30-31
|
||||
Consolidated Statements of Income for the years
ended February 28, 2009, February 29, 2008, and February 28,
2007
|
32
|
|||
Consolidated Balance Sheets as of February 28, 2009
and February 29, 2008
|
33-34
|
|||
Consolidated Statements of Cash Flows for the years ended
February 28, 2009, February 29, 2008, and February 28,
2007
|
35-36
|
|||
Consolidated Statements of Shareholders' Equity for
the years ended February 28, 2009, February 29, 2008, and February 28,
2007
|
37
|
|||
38-53
|
||||
2
|
||||
Schedule
II – Valuation and Qualifying Accounts and Reserves
|
54
|
2009
|
2008
|
2007
|
||||||||||
Net
sales
|
$
|
412,364,321
|
$
|
320,193,104
|
$
|
260,343,667
|
||||||
Costs
and expenses:
|
||||||||||||
Cost
of sales
|
299,011,807
|
239,651,058
|
193,411,001
|
|||||||||
Selling,
general, and administrative
|
43,221,186
|
36,261,642
|
31,948,452
|
|||||||||
Net
(gain) loss from sale of or insurance settlement on property, plant and
equipment
|
(1,508,892
|
)
|
32,211
|
(586,001
|
)
|
|||||||
Interest
expense
|
6,169,723
|
1,494,731
|
1,495,442
|
|||||||||
Other
income
|
(1,439,635
|
)
|
(1,079,431
|
)
|
(524,973
|
)
|
||||||
345,454,189
|
276,360,211
|
225,743,921
|
||||||||||
Income
before income taxes and accounting changes
|
66,910,132
|
43,832,893
|
34,599,746
|
|||||||||
Income
tax
expense
|
24,703,907
|
16,145,304
|
12,910,182
|
|||||||||
Income
before cumulative effect of changes in accounting
principles
|
$
|
42,206,225
|
$
|
27,687,589
|
$
|
21,689,564
|
||||||
Cumulative
effect of change in accounting principles (net of tax of $50,667 in
2007)
|
-
|
-
|
(
85,344
|
)
|
||||||||
Net
Income
|
$
|
42,206,225
|
$
|
27,687,589
|
$
|
21,604,220
|
||||||
Earnings
per common share:
|
||||||||||||
Basic
earnings per share before effect of change in accounting
|
$
|
3.48
|
$
|
2.30
|
$
|
1.87
|
||||||
Cumulative
effect of change in accounting
|
-
|
$
|
-
|
(
.01
|
)
|
|||||||
Basic
earnings per share after effect of change in accounting
|
$
|
3.48
|
$
|
2.30
|
$
|
1.86
|
||||||
Diluted earnings
per share before effect of change in accounting
|
$
|
3.43
|
$
|
2.26
|
$
|
1.83
|
||||||
Cumulative
effect of change in accounting
|
-
|
$
|
-
|
(
.01
|
)
|
|||||||
Diluted earnings
per share after effect of change in accounting
|
$
|
3.43
|
$
|
2.26
|
$
|
1.82
|
||||||
Weighted
average number common shares
|
12,140,152
|
12,012,789
|
11,599,428
|
|||||||||
Weighted
average number common shares and potentially dilutive common
shares
|
12,302,176
|
12,227,212
|
11,838,612
|
Assets
|
2009
|
2008
|
||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
47,557,711
|
$
|
2,226,941
|
||||
Accounts
receivable, net of allowance for doubtful accounts of $900,000 in 2009 and
$630,000 in 2008
|
64,763,982
|
38,901,577
|
||||||
Inventories
|
53,775,800
|
43,426,468
|
||||||
Costs
and estimated earnings in excess of billings on uncompleted
contracts
|
11,328,287
|
13,044,076
|
||||||
Deferred
income tax assets
|
3,588,267
|
4,391,398
|
||||||
Prepaid
expenses and other
|
1,009,477
|
1,004,383
|
||||||
Total
current assets
|
182,023,524
|
102,994,843
|
||||||
Property,
plant, and equipment, at cost:
|
||||||||
Land
|
5,293,442
|
2,992,863
|
||||||
Buildings
and structures
|
57,432,879
|
36,763,402
|
||||||
Machinery
and equipment
|
71,222,475
|
46,783,600
|
||||||
Furniture,
fixtures, software and computers
|
11,361,501
|
8,548,747
|
||||||
Automotive
equipment
|
2,025,855
|
1,871,116
|
||||||
Construction
in progress
|
2,575,285
|
2,936,578
|
||||||
149,911,437
|
99,896,306
|
|||||||
Less
accumulated depreciation
|
(62,244,744
|
)
|
(51,611,396
|
)
|
||||
Net
property, plant, and equipment
|
87,666,693
|
48,284,910
|
||||||
Goodwill
|
66,157,000
|
40,962,104
|
||||||
Other
assets
|
18,868,230
|
1,077,423
|
||||||
Total
Assets
|
$
|
354,715,447
|
$
|
193,319,280
|
Liabilities and Shareholders'
Equity
|
2009
|
2008
|
||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
17,853,171
|
$
|
16,035,932
|
||||
Income
tax payable
|
259,734
|
706,966
|
||||||
Accrued
salaries and wages
|
5,509,197
|
4,919,804
|
||||||
Other
accrued liabilities
|
12,293,073
|
6,385,285
|
||||||
Customer
advance payment
|
13,632,734
|
2,115,330
|
||||||
Profit
sharing
|
6,070,000
|
3,900,000
|
||||||
Billings
in excess of costs and estimated earnings on uncompleted
contracts
|
2,753,532
|
3,798,179
|
||||||
Compensation
expense related to stock appreciation rights
|
-
|
4,834,325
|
||||||
Total
current liabilities
|
58,371,441
|
42,695,821
|
||||||
Long-term
debt due after one
year
|
100,000,000
|
-
|
||||||
Deferred
income tax
liabilities
|
9,232,302
|
4,466,834
|
||||||
Commitments and
Contingencies
|
||||||||
Shareholders'
equity:
|
||||||||
Common
stock, $1 par value; 25,000,000 shares authorized; 12,609,160 shares
issued at February 28, 2009 and February 29, 2008
|
12,609,160
|
12,609,160
|
||||||
Capital
in excess of par value
|
18,241,664
|
16,369,938
|
||||||
Retained
earnings
|
161,755,340
|
119,549,115
|
||||||
Accumulated
other comprehensive income (loss)
|
(3,198,159
|
)
|
-
|
|||||
Less
common stock held in treasury, at cost (464,944 shares at February
28, 2009 and 480,188 shares at February 29, 2008)
|
(2,296,301
|
)
|
(2,371,588
|
)
|
||||
Total
shareholders' equity
|
187,111,704
|
146,156,625
|
||||||
$
|
354,715,447
|
$
|
193,319,280
|
2009
|
2008
|
2007
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$
|
42,206,225
|
$
|
27,687,589
|
$
|
21,604,220
|
||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
|
12,921,034
|
7,998,899
|
6,478,441
|
|||||||||
Amortization
|
1,606,957
|
199,981
|
181,203
|
|||||||||
Share
based compensation expense
|
1,843,318
|
845,346
|
763,957
|
|||||||||
Amortization
of deferred borrowing costs
|
281,076
|
13,580
|
155,841
|
|||||||||
Provision
for doubtful accounts
|
931,794
|
111,171
|
450,796
|
|||||||||
Deferred
income tax expense (benefit)
|
5,568,600
|
(529,264
|
)
|
(1,127,389
|
)
|
|||||||
Cumulative
effect of change in accounting principle
|
-
|
-
|
85,344
|
|||||||||
Net
(gain) loss on insurance settlement or sale of property, plant and
equipment
|
(1,508,892
|
)
|
50,914
|
(586,001
|
)
|
|||||||
Effects
of changes in operating assets and liabilities, net of business
acquisitions:
|
||||||||||||
Accounts
receivable
|
(16,653,577
|
)
|
11,264,808
|
(16,126,028
|
)
|
|||||||
Inventories
|
1,998,318
|
2,060,797
|
(17,413,761
|
)
|
||||||||
Prepaid
expenses and other assets
|
43,211
|
999,226
|
(402,038
|
)
|
||||||||
Net
change in billings related to costs and estimated earnings on uncompleted
contracts
|
671,143
|
(3,027,519
|
)
|
(6,118,020
|
)
|
|||||||
Accounts
payable
|
755,889
|
(9,280,234
|
)
|
8,686,064
|
||||||||
Other
accrued liabilities and income taxes
|
9,531,074
|
530,896
|
10,294,892
|
|||||||||
Net
cash provided by operating activities
|
60,196,170
|
38,926,190
|
6,927,521
|
|||||||||
Cash
flows from investing activities:
|
||||||||||||
Proceeds
from the sale or insurance settlement of property, plant and
equipment
|
3,529,481
|
219,795
|
749,118
|
|||||||||
Acquisition
of subsidiaries, net of cash acquired
|
(96,332,010
|
)
|
-
|
(13,425,967
|
)
|
|||||||
Purchases
of property, plant and equipment
|
(20,008,583
|
)
|
(9,926,198
|
)
|
(10,658,561
|
)
|
||||||
Net
cash used in investing activities
|
(112,811,112
|
)
|
(9,706,403
|
)
|
(23,335,410
|
)
|
2009
|
2008
|
2007
|
||||||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from long-term debt
|
100,000,000
|
-
|
-
|
|||||||||
Debt
acquisition costs
|
(2,000,000)
|
-
|
-
|
|||||||||
Tax
benefits from stock options exercised
|
72,453
|
3,053,649
|
266,096
|
|||||||||
Proceeds
from exercise of stock options
|
31,242
|
3,450,413
|
1,260,940
|
|||||||||
Payments
on revolving loan
|
-
|
(35,200,000
|
)
|
(11,640,482
|
)
|
|||||||
Payments
on long-term debt
|
-
|
-
|
(12,375,000
|
)
|
||||||||
Proceeds
from revolving loan
|
-
|
-
|
39,340,482
|
|||||||||
Net
cash provided by (used in) financing activities
|
98,103,695
|
(28,695,938
|
)
|
16,852,036
|
||||||||
Effect
of exchange rate changes on cash
|
(157,983
|
)
|
-
|
-
|
||||||||
Net
increase (decrease) in cash and cash equivalents
|
45,330,770
|
523,849
|
444,147
|
|||||||||
Cash
and cash equivalents at beginning of year
|
2,226,941
|
1,703,092
|
1,258,945
|
|||||||||
Cash
and cash equivalents at end of
year
|
$
|
47,557,711
|
$
|
2,226,941
|
$
|
1,703,092
|
||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||
Cash
paid during the year for:
|
||||||||||||
Interest
|
$
|
3,322,618
|
$
|
1,672,214
|
$
|
1,310,138
|
||||||
Income
taxes
|
$
|
20,558,538
|
$
|
13,726,926
|
$
|
13,849,408
|
Common
Stock
|
Capital
in
|
Retained
|
Accumulated
Other
|
Treasury
|
Total
|
|||||||||||||||||||||||
excess
of
|
earnings
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||
Shares
|
Amount
|
par
value
|
Income
(Loss)
|
|||||||||||||||||||||||||
Balance
at February 28, 2006
|
12,609,160
|
$
|
12,609,160
|
$
|
9,608,026
|
$
|
70,257,305
|
$
|
44,226
|
$
|
(5,250,076
|
)
|
$
|
87,268,641
|
||||||||||||||
Exercise
of stock options
|
523,105
|
737,836
|
1,260,941
|
|||||||||||||||||||||||||
Stock
compensation
|
689,477
|
74,480
|
763,957
|
|||||||||||||||||||||||||
Federal
income tax deducted on stock options
|
266,095
|
266,095
|
||||||||||||||||||||||||||
Comprehensive
income:
Net
income
|
21,604,221
|
21,604,221
|
||||||||||||||||||||||||||
Other
comprehensive income, net of tax:
Unrealized
gain (loss) on market value of interest rate swaps,
net of ($8,403) of income tax
|
(15,605
|
)
|
(15,605
|
)
|
||||||||||||||||||||||||
Comprehensive
income
|
21,588,616
|
|||||||||||||||||||||||||||
Balance
at February 28, 2007
|
12,609,160
|
$
|
12,609,160
|
$
|
11,086,703
|
$
|
91,861,526
|
$
|
28,621
|
$
|
(4,437,760
|
)
|
$
|
111,148,250
|
||||||||||||||
Exercise
of stock options
|
1,384,240
|
2,066,172
|
3,450,412
|
|||||||||||||||||||||||||
Stock
compensation
|
845,346
|
845,346
|
||||||||||||||||||||||||||
Federal
income tax deducted on stock options
|
3,053,649
|
3,053,649
|
||||||||||||||||||||||||||
Comprehensive
income:
Net
income
|
27,687,589
|
27,687,589
|
||||||||||||||||||||||||||
Other
comprehensive income, net of tax:
Unrealized
gain (loss) on market value of interest rate swaps,
net of ($15,411) of income tax
|
(28,621
|
)
|
(28,621
|
)
|
||||||||||||||||||||||||
Comprehensive
income
|
27,658,968
|
|||||||||||||||||||||||||||
Balance
at February 29, 2008
|
12,609,160
|
$
|
12,609,160
|
$
|
16,369,938
|
$
|
119,549,115
|
$
|
-
|
$
|
(2,371,588
|
)
|
$
|
146,156,625
|
||||||||||||||
Exercise
of stock options
|
(5,365
|
)
|
36,606
|
31,242
|
||||||||||||||||||||||||
Stock
compensation
|
1,804,637
|
38,681
|
1,843,318
|
|||||||||||||||||||||||||
Federal
income tax deducted on stock options
|
72,453
|
72,453
|
||||||||||||||||||||||||||
Comprehensive
income:
Net
income
|
42,206,225
|
42,206,225
|
||||||||||||||||||||||||||
Foreign
currency translation
|
(3,198,159
|
)
|
(3,198,159
|
)
|
||||||||||||||||||||||||
Comprehensive
income
|
39,008,066
|
|||||||||||||||||||||||||||
Balance
at February 28, 2009
|
12,609,160
|
$
|
12,609,160
|
$
|
18,241,664
|
$
|
161,755,340
|
$
|
(3,198,159
|
)
|
$
|
(2,296,301
|
)
|
$
|
187,111,704
|
Buildings
and structures
|
10-25
years
|
Machinery
and equipment
|
3-15
years
|
Furniture
and fixtures
|
3-15
years
|
Automotive
equipment
|
3
years
|
Warranty
Reserve
(In
thousands)
|
||||
Balance
at February 28, 2006
|
$ | 1,102 | ||
Warranty
costs incurred
|
(888 | ) | ||
Additions
charged to income
|
1,364 | |||
Balance
at February 28, 2007
|
$ | 1,578 | ||
Warranty
costs incurred
|
(1,034 | ) | ||
Additions
charged to income
|
1,188 | |||
Balance
at February 29, 2008
|
$ | 1,732 | ||
Warranty
costs incurred
|
(1,454 | ) | ||
Additions
charged to income
|
1,737 | |||
Balance
at February 28, 2009
|
$ | 2,015 |
2.
|
Inventories
|
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Raw
materials
|
$ | 27,275 | $ | 26,555 | ||||
Work-in-process
|
23,037 | 14,182 | ||||||
Finished
goods
|
3,464 | 2,689 | ||||||
$ | 53,776 | $ | 43,426 |
3.
|
Costs
and estimated earnings on uncompleted
contracts
|
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Costs
incurred on uncompleted contracts
|
$ | 70,236 | $ | 47,469 | ||||
Estimated
earnings
|
31,393 | 19,195 | ||||||
101,629 | 66,664 | |||||||
Less
billings to date
|
93,054 | 57,418 | ||||||
$ | 8,575 | $ | 9,246 |
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Cost
and estimated earnings in excess of billings on
uncompleted contracts
|
$ | 11,329 | $ | 13,044 | ||||
Billings
in excess of costs and estimated earnings on
uncompleted contracts
|
(2,754 | ) | (3,798 | ) | ||||
$ | 8,575 | $ | 9,246 |
4.
|
Other
accrued liabilities
|
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Accrued
interest
|
$ | 2,600 | $ | 43 | ||||
Tenant
improvements
|
2,177 | 1,099 | ||||||
Accrued
warranty
|
2,015 | 1,732 | ||||||
Commissions
|
1,931 | 1,251 | ||||||
Group
medical insurance
|
800 | 550 | ||||||
Other
|
2,770 | 1,710 | ||||||
$ | 12,293 | $ | 6,385 |
5.
|
Employee
benefit plans
|
6.
|
Income
taxes
|
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Deferred
income tax assets:
|
||||||||
Employee
related items
|
$ | 1,380 | $ | 2,606 | ||||
Inventories
|
257 | 182 | ||||||
Accrued
warranty
|
756 | 650 | ||||||
Accounts
receivable
|
338 | 236 | ||||||
Other
|
857 | 717 | ||||||
Total
deferred income tax assets
|
$ | 3,588 | $ | 4,391 | ||||
Deferred
income tax liabilities:
|
||||||||
Depreciation
methods and property basis differences
|
$ | (5,715 | ) | $ | (1,458 | ) | ||
Other
assets and goodwill
|
(3,517 | ) | (3,008 | ) | ||||
Total
deferred income tax liabilities
|
(9,232 | ) | (4,466 | ) | ||||
Net
deferred income tax liabilities
|
$ | (5,644 | ) | $ | (75 | ) |
|
The
provision for income taxes, including tax effect of change in accounting
principle, consists of:
|
2009
|
2008
|
2007
|
||||||||||
(In
thousands)
|
||||||||||||
Federal:
|
||||||||||||
Current
|
$ | 16,363 | $ | 15,171 | $ | 12,536 | ||||||
Deferred
|
5,264 | (486 | ) | (1,062 | ) | |||||||
State:
|
||||||||||||
Current
|
2,725 | 1,503 | 1,451 | |||||||||
Deferred
|
400 | (43 | ) | (65 | ) | |||||||
Foreign
|
||||||||||||
Current
|
70 | - | - | |||||||||
Deferred
|
(118 | ) | - | - | ||||||||
$ | 24,704 | $ | 16,145 | $ | 12,860 |
2009
|
2008
|
2007
|
||||||||||
Statutory
federal income tax rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
Expenses
not deductible for tax purposes
|
.2 | .2 | .3 | |||||||||
State
income taxes, net of federal income tax benefit
|
3.2 | 2.1 | 2.5 | |||||||||
Benefit
of section 199, manufacturing deduction
|
(1.6 | ) | (1.7 | ) | (1.1 | ) | ||||||
Other
|
.1 | 1.2 | .6 | |||||||||
Effective
income tax rate
|
36.9 | % | 36.8 | % | 37.3 | % |
7.
|
Intangible
assets and goodwill
|
Segment
|
March
1, 2008
|
Acquisitions
|
Foreign
Exchange Translation
|
February
28, 2009
|
||||||||||||
(In
thousands)
|
||||||||||||||||
Galvanizing
Services Segment
|
$ | 9,966 | $ | 15,618 | $ | - | $ | 25,584 | ||||||||
Electrical
& Industrial Products Segment
|
30,996 | 12,062 | (2,485 | ) | 40,573 | |||||||||||
Total
|
$ | 40,962 | $ | 27,680 | $ | (2,485 | ) | $ | 66,157 |
2009
|
2008
|
|||||||
(In
thousands)
|
||||||||
Non-amortizable
intangible assets
|
||||||||
Trademarks
|
$ | 590 | $ | - | ||||
Total
non-amortizable intangible assets
|
$ | 590 | $ | - | ||||
Amortizable
intangible assets
|
||||||||
Customer
related intangibles
|
$ | 15,035 | $ | 765 | ||||
Non-compete
agreements
|
2,983 | 1,183 | ||||||
Certifications
|
205 | - | ||||||
Backlog
|
739 | - | ||||||
18,962 | 1,948 | |||||||
Less
accumulated amortization
|
2,568 | 961 | ||||||
$ | 16,394 | $ | 987 |
(In
thousands)
|
||||
2010
|
$ | 1,686 | ||
2011
|
1,290 | |||
2012
|
1,280 | |||
2013
|
1,272 | |||
2014
|
894 | |||
Thereafter
|
9,972 | |||
Total
|
$ | 16,394 |
2009
|
2008
|
2007
|
||||||||||
(In
thousands, except share and per share amounts)
|
||||||||||||
Numerator:
|
||||||||||||
Income
before cumulative effect of changes in accounting
principles
|
$ | 42,206 | $ | 27,688 | $ | 21,689 | ||||||
Cumulative
effect of accounting change
|
- | - | (85 | ) | ||||||||
Net
income for basic and diluted earnings per common share
|
$ | 42,206 | $ | 27,688 | $ | 21,604 | ||||||
Denominator:
|
||||||||||||
Denominator
for basic earnings per common share - weighted-average
shares
|
12,140,152 | 12,012,789 | 11,599,428 | |||||||||
Effect
of dilutive securities:
|
||||||||||||
Stock
options/Equity SARs
|
162,024 | 214,423 | 239,184 | |||||||||
Denominator
for diluted earnings per common share - adjusted weighted-average
shares
|
12,302,176 | 12,227,212 | 11,838,612 | |||||||||
Earnings
per share basic and diluted:
|
||||||||||||
Before
cumulative effect of change in accounting principles
|
||||||||||||
Basic
earnings per common share
|
$ | 3.48 | $ | 2.30 | $ | 1.87 | ||||||
Diluted
earnings per common share
|
$ | 3.43 | $ | 2.26 | $ | 1.83 | ||||||
After
cumulative effect of change in accounting principles
|
||||||||||||
Basic
earnings per common share
|
$ | 3.48 | $ | 2.30 | $ | 1.86 | ||||||
Diluted
earnings per common share
|
$ | 3.43 | $ | 2.26 | $ | 1.82 |
9.
|
Stock
options and other shareholder
matters
|
2009
|
2008
|
2007
|
||||||||||||||||||||||
Options/
SAR’s
|
Weighted
Average Exercise Price
|
Options/
SAR’s
|
Weighted
Average Exercise Price
|
Options
|
Weighted
Average Exercise Price
|
|||||||||||||||||||
Outstanding
at beginning of year
|
485,292 | $ | 12.78 | 825,590 | $ | 8.92 | 754,776 | $ | 7.90 | |||||||||||||||
Granted
|
131,690 | 35.795 | 147,740 | 19.885 | 234,160 | 11.55 11.55 | ||||||||||||||||||
Exercised
|
(9,912 | ) | 6.89 | (488,038 | ) | 8.41 | (158,504 | ) | 7.96 | |||||||||||||||
Forfeited
|
0 | N/A | 0 | N/A | (4,842 | ) | 8.80 | |||||||||||||||||
Outstanding
at end of year
|
607,070 | $ | 17.87 | 485,292 | $ | 12.78 | 825,590 | $ | 8.92 | |||||||||||||||
Exercisable
at end of year
|
414,350 | $ | 16.24 | 248,572 | $ | 10.68 | 620,834 | $ | 8.78 | |||||||||||||||
Weighted
average fair value for the fiscal year indicated of options and SARs
granted during such year
|
$ | 11.801 | $ | 5.534 | $ | 2.915 |
Range
of
Exercise
Prices
|
Total
Shares/ SAR’s
|
Weighted
Average Remaining Life
|
Weighted
Average Exercise Price
|
Shares
/ SAR’s Currently Exercisable
|
Weighted
Average Exercise Price
|
|||||||||||||||||
$ | 4.215-$5.545 | 36,352 | 4.45 | $ | 4.75 | 36,352 | $ | 4.75 | ||||||||||||||
$ | 7.70-$8.80 | 87,568 | 3.03 | $ | 8.32 | 87,568 | $ | 8.32 | ||||||||||||||
$ | 11.55-$19.885 | 351,460 | .70 | $ | 14.89 | 217,860 | $ | 14.80 | ||||||||||||||
$ | 29.97-$35.88 | 131,690 | 2.00 | $ | 35.80 | 72,570 | $ | 35.88 | ||||||||||||||
$ | 4.125-35.88 | 607,070 | 1.54 | $ | 17.87 | 414,350 | $ | 16.24 |
Long-term
debt consists of the following:
|
2009
|
2008
|
||||||
(In
thousands)
|
||||||||
Senior
Note, payable to bank, due in annual installments of $14,285,714 beginning
in May 2012 through May 2018
|
$ | 100,000 | - | |||||
Revolving
line of credit with bank
|
- | - | ||||||
100,000 | - | |||||||
Less
amount due within one year
|
- | |||||||
$ | 100,000 | - |
(In
thousands)
|
||||
2010
|
$ | - | ||
2011
|
- | |||
2012
|
- | |||
2013
|
14,286 | |||
2014
|
14,286 | |||
Thereafter
|
71,428 | |||
Total
|
$ | 100,000 |
2009
|
2008
|
2007
|
||||||||||
Net
sales:
|
(In
thousands)
|
|||||||||||
Electrical
and Industrial Products
|
$
|
225,797
|
$
|
179,181
|
$
|
150,250
|
||||||
Galvanizing
Services
|
186,567
|
141,012
|
110,094
|
|||||||||
$
|
412,364
|
$
|
320,193
|
$
|
260,344
|
|||||||
Segment
Operating income (a):
|
||||||||||||
Electrical
and Industrial Products
|
$
|
38,952
|
$
|
29,158
|
$
|
21,301
|
||||||
Galvanizing
Services
|
53,183
|
35,087
|
31,945
|
|||||||||
Total
Segment Operating Income
|
92,135
|
64,245
|
53,246
|
|||||||||
General
corporate expenses (b)
|
19,441
|
18,890
|
17,074
|
|||||||||
Interest
expense
|
6,170
|
1,495
|
1,496
|
|||||||||
Other
(income) expense, net (c)
|
(386
|
)
|
27
|
76
|
||||||||
25,225
|
20,412
|
18,646
|
||||||||||
Income
before income taxes and accounting changes
|
$
|
66,910
|
$
|
43,833
|
$
|
34,600
|
||||||
Depreciation
and amortization:
|
||||||||||||
Electrical
and Industrial Products
|
$
|
3,116
|
$
|
2,375
|
$
|
1,826
|
||||||
Galvanizing
Services
|
10,280
|
5,004
|
4,001
|
|||||||||
Corporate
|
1,176
|
820
|
988
|
|||||||||
$
|
14,572
|
$
|
8,199
|
$
|
6,815
|
|||||||
Expenditures
for acquisitions, net of cash, and property, plant and
equipment:
|
||||||||||||
Electrical
and Industrial Products
|
$
|
20,339
|
$
|
4,998
|
$
|
5,425
|
||||||
Galvanizing
Services
|
92,811
|
4,662
|
17,990
|
|||||||||
Corporate
|
3,248
|
266
|
669
|
|||||||||
$
|
116,398
|
$
|
9,926
|
$
|
24,084
|
|||||||
Total
assets:
|
||||||||||||
Electrical
and Industrial Products
|
$
|
159,334
|
$
|
114,722
|
$
|
112,822
|
||||||
Galvanizing
Services
|
138,826
|
72,083
|
81,076
|
|||||||||
Corporate
|
56,555
|
6,514
|
7,010
|
|||||||||
$
|
354,715
|
$
|
193,319
|
$
|
200,908
|
|||||||
Goodwill:
|
||||||||||||
Electrical
and Industrial Products
|
$
|
40,574
|
$
|
30,997
|
$
|
30,997
|
||||||
Galvanizing
Services
|
25,583
|
9,965
|
9,965
|
|||||||||
$
|
66,157
|
$
|
40,962
|
$
|
40,962
|
|
(a)
|
Segment
operating income consists of net sales less cost of sales, specifically
identifiable selling, general and administrative expenses, and other
income and expense items that are specifically identifiable to a
segment.
|
|
(b)
|
General
Corporate Expense consists of selling, general and administrative expenses
that are not specifically identifiable to a
segment.
|
|
(c)
|
Other
(income) expense, net includes gains and losses on sale of property, plant
and equipment and other (income) expenses not specifically identifiable to
a segment.
|
12.
|
Commitments
and contingencies
|
Operating
Leases
|
||||
(In
thousands)
|
||||
2010
|
$ | 3,701 | ||
2011
|
3,937 | |||
2012
|
3,275 | |||
2013
|
2,811 | |||
2014
|
2,690 | |||
Thereafter
|
14,192 | |||
Total
|
$ | 30,606 |
13.
|
Quarterly
financial information, unaudited (in thousands, except per share
amounts)
|
Quarter
ended
|
||||||||||||||||
May
31, 2008
|
August
31, 2008
|
November
30, 2008
|
February
28, 2009
|
|||||||||||||
2009
|
||||||||||||||||
Net
sales
|
$ | 99,958 | $ | 103,259 | $ | 108,860 | $ | 100,286 | ||||||||
Gross
profit
|
26,269 | 29,477 | 29,487 | 28,119 | ||||||||||||
Net
income
|
10,123 | 11,304 | 10,813 | 9,967 | ||||||||||||
Basic
earnings per common share
|
.83 | .93 | .89 | .82 | ||||||||||||
Diluted
earnings per common share
|
.82 | .92 | .88 | .81 |
Quarter
ended
|
||||||||||||||||
May
31, 2007
|
August
31, 2007
|
November
30, 2007
|
February
29, 2008
|
|||||||||||||
2008
|
||||||||||||||||
Net
sales
|
$ | 75,377 | $ | 81,606 | $ | 86,593 | $ | 76,617 | ||||||||
Gross
profit
|
19,169 | 21,241 | 20,224 | 19,908 | ||||||||||||
Net
income
|
4,146 | 8,122 | 8,092 | 7,328 | ||||||||||||
Basic
earnings per common share
|
.35 | .67 | .67 | .60 | ||||||||||||
Diluted
earnings per common share
|
.34 | .66 | .66 | .60 |
14.
|
Acquisitions
|
Purchase Price Allocation
|
||||
($
in thousands)
|
||||
Current
Assets
|
$ | 18,061 | ||
Property
and Equipment
|
32,879 | |||
Intangible
Assets
|
16,070 | |||
Goodwill
|
15,618 | |||
Total
Assets Acquired
|
82,628 | |||
Current
Liabilities
|
(1,053 | ) | ||
Net
Assets Acquired
|
$ | 81,575 |
February
28, 2009
|
February
29, 2008
|
|||||||
(In
thousands, except per share amounts)
|
||||||||
Net
Sales
|
$ | 416,914 | $ | 378,379 | ||||
Net
Income
|
42,237 | 28,755 | ||||||
Earnings
Per Common Share:
|
||||||||
Basic
Earnings Per Share
|
$ | 3.48 | $ | 2.39 | ||||
Diluted
Earnings Per Share
|
$ | 3.43 | $ | 2.35 |
Year
Ended
|
||||||||||||
February
28, 2009
|
February
29, 2008
|
February
28, 2007
|
||||||||||
Allowance
for Doubtful Accounts
|
||||||||||||
Balance
at Beginning of
year
|
$
|
630
|
$
|
670
|
$
|
400
|
||||||
Additions
charged or credited to income
|
932
|
111
|
451
|
|||||||||
Balances
written off, net of recoveries
|
(662
|
)
|
(151
|
)
|
(181
|
)
|
||||||
Balance
at end of
year
|
$
|
900
|
$
|
630
|
$
|
670
|
3(1)
|
Articles
of Incorporation, and all amendments thereto (incorporated by reference to
the Annual Report on Form 10-K filed by Registrant for the fiscal year
ended February 28, 1981).
|
3(2)
|
Articles
of Amendment to the Article of Incorporation of the Registrant dated June
30, 1988 (incorporated by reference to the Annual Report on
Form 10-K filed by Registrant for the fiscal year ended February 29,
2000).
|
3(3)
|
Articles
of Amendment to the Articles of Incorporation of the Registrant dated
October 25, 1999 (incorporated by reference to the Annual
Report on Form 10-K filed by Registrant for the fiscal year ended February
29, 2000).
|
3(4)
|
Articles
of Amendment to the Articles of Incorporation dated July 17, 2000
(incorporated by reference to the Quarterly Report Form 10-Q filed by
Registrant for the quarter ended August 31, 2000).
|
3(5)
|
Amended
and Restated Bylaws of AZZ incorporated (incorporated by reference to the
Exhibit 3(1) to the Current Report Form 8-K filed by the Registrant on
November 27, 2007).
|
3(6)
|
Amended
and Restated Bylaws of AZZ incorporated (incorporated by reference to the
Exhibit 3(1) to the Current Report Form 8-K filed by the Registrant on
April 3, 2009).
|
4
|
Form
of Stock Certificate for the Company’s $1.00 par value Common Stock
(incorporated by reference to the Quarterly Report Form 10-Q filed by
Registrant August 31, 2000).
|
10(1)
|
Second
Amended and Restated Credit Agreement with Bank of America, N.A., dated
May 25, 2006 (incorporated by reference to Exhibit 10(1) of the Form 8-K
filed by the Registrant on May 26, 2006).
|
10(2)
|
First
Amendment to Second Amended and Restated Credit Agreement with Bank of
America, N.A., dated February 28, 2007 (incorporated by reference to
Exhibit 10(1) of the Form 8-K filed by the Registrant on March 1,
2007).
|
10(3) |
Second
Amendment and Consent to Second Amendment and Restated Credit Agreement
dated March 31, 2008, by and between AZZ incorporated and Bank of America,
N.A. (incorporated by reference to Exhibit 10(3) of the Form 8-K filed by
the registrant on April 2, 2008).
|
10(4) |
Note
Purchase Agreement dated March 31, 2008, by and among AZZ incorporated and
the purchasers listed therein (incorporated by reference to Exhibit 10(1)
of the Form 8-K filed by the registrant on April 2,
2008).
|
10(5) |
Asset
Purchase Agreement dated March 31, 2008, by and among AZZ incorporated and
AAA Industries, Inc. (incorporated by reference to Exhibit 10(2) of the
Form 8-K filed by the registrant on April 2,
2008).
|
10(6)
|
Asset
Purchase Agreement executed and delivered on June 26, 2008 and made to be
effective as of June 30, 2008, by and among AZZ incorporated, AZZ
Blenkhorn & Sawle Limited, Blenkhorn and Sawle Limited, and Chriscot
Holdings Limited.
|
10(7)
|
AZZ
incorporated Amended and Restated 2005 Long-Term Incentive Plan
(incorporated by reference to Appendix A of the Proxy Statement for the
2008 Annual Shareholders Meeting).
|
10(8)
|
AZZ
incorporated Employee Stock Purchase Plan (incorporated by reference to
Appendix B of the Proxy Statement for the 2008 Annual Shareholders
Meeting).
|
10(9)
|
1999
Independent Director Share Ownership Plan as Approved on January 19, 1999
and As Amended on September 22, 1999 (incorporated by reference to Exhibit
10(22) of the Annual Report on Form 10-K filed by Registrant for the
fiscal year ended February 28, 2001).
|
10(10)
|
2000
Advisory Director Share Ownership Plan as Approved on March 28, 2000
(incorporated by reference to Exhibit 10(23) of the Annual Report on Form
10-K filed by Registrant for the fiscal year ended February 28,
2001).
|
10(11)
|
AZZ
incorporated 2001 Long-Term Incentive Plan (incorporated by reference to
Exhibit A of the Proxy Statement for the 2001 Annual Shareholders
Meeting).
|
10(12)
|
AZZ
incorporated 2005 Management Incentive Bonus Plan (incorporated by
reference to Exhibit 10(20) to the Annual Report on Form 10-K filed by the
registrant for the fiscal year ended February 28,
2002).
|
10(13)
|
2002
Plan for the Annual Grant of Stock Options to Independent Directors of AZZ
incorporated (incorporated by reference to Exhibit 10(27) to the Quarterly
Report Form 10-Q filed by the registrant for the quarter ended August 31,
2002).
|
10(14)
|
AZZ
incorporated Fiscal Year 2005 Stock Appreciation Rights Plan for Directors
(incorporated by reference to Exhibit 10(53) to the quarterly report Form
10-Q filed by the Registrant for the quarter ended August 31,
2004).
|
10(15)
|
AZZ
incorporated Fiscal Year 2005 Stock Appreciation Rights Plan for Key
Employees (incorporated by reference to Exhibit 10(54) to the quarterly
report Form 10-Q filed by the Registrant for the quarter ended August 31,
2004).
|
10(16)
|
AZZ
incorporated 2005 Independent Director Compensation Plan (incorporated by
reference to Exhibit 10.2 to the current report on Form 8-K filed by the
Registrant on July 14, 2005).
|
11
|
Computation of Per Share Earnings (see Note 8 to the
Consolidated Financial Statements). Filed Herewith.
|
14
|
Code
of Ethics. The Company’s Code of Business Conduct and Ethics
may be accessed via the Company’s Website at www.azz.com.
|
21
|
Subsidiaries of Registrant. Filed
Herewith.
|
23.1
|
Consent of BDO Seidman LLP. Filed
Herewith.
|
31.1
|
Chief Executive Officer Certificate pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 dated May 8, 2009. Filed
Herewith.
|
31.2
|
Chief Financial Officer Certificate pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002 dated May 8, 2009. Filed
Herewith.
|
32.1
|
Chief Executive Officer Certificate pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 dated May 8, 2009. Filed
Herewith.
|
32.2
|
Chief Financial Officer Certificate pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 dated May 8, 2009. Filed
Herewith.
|