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
|
$
|