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v3.23.3

Operating segments (Tables) | 6 Months Ended
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Aug. 31, 2023
Segment Reporting [Abstract] |
Operations and assets by segment | Net income from continuing operations by segment for the three and six months ended August 31, 2023 and 2022 was as follows (in thousands):
| Three Months Ended August 31, 2023
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 169,837 |  |  | $ | 228,705 |  |  | $ | — |  |  | $ | — |  |  | $ | 398,542 |
Cost of sales | 119,471 |  |  | 181,825 |  |  | — |  |  | — |  |  | 301,296 |
Gross margin | 50,366 |  |  | 46,880 |  |  | — |  |  | — |  |  | 97,246 |
Selling, general and administrative | 5,285 |  |  | 7,874 |  |  | 5,932 |  |  | 17,148 |  |  | 36,239 |
Operating income (loss) from continuing operations | $ | 45,081 |  |  | $ | 39,006 |  |  | (5,932) |  |  | (17,148) |  |  | 61,007 |
Interest expense |  |  |  |  | — |  |  | 27,770 |  |  | 27,770 |
Equity in earnings of unconsolidated subsidiaries |  |  |  |  | (974) |  |  | — |  |  | (974) |
Other (income) expense |  |  |  |  | — |  |  | (88) |  |  | (88) |
Income (loss) from continuing operations before income tax |  |  |  |  | $ | (4,958) |  |  | (44,830) |  |  | 34,299 |
Income tax expense |  |  |  |  |  |  | 5,967 |  |  | 5,967 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (50,797) |  |  | $ | 28,332 |
| Six Months Ended August 31, 2023
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 338,631 |  |  | $ | 450,784 |  |  | $ | — |  |  | $ | — |  |  | $ | 789,415 |
Cost of sales | 237,328 |  |  | 357,822 |  |  | — |  |  | — |  |  | 595,150 |
Gross margin | 101,303 |  |  | 92,962 |  |  | — |  |  | — |  |  | 194,265 |
Selling, general and administrative | 10,751 |  |  | 16,266 |  |  | 5,954 |  |  | 34,791 |  |  | 67,762 |
Operating income (loss) from continuing operations | $ | 90,552 |  |  | $ | 76,696 |  |  | (5,954) |  |  | (34,791) |  |  | 126,503 |
Interest expense |  |  |  |  | — |  |  | 56,476 |  |  | 56,476 |
Equity in earnings of unconsolidated subsidiaries |  |  |  |  | (2,394) |  |  | — |  |  | (2,394) |
Other (income) expense |  |  |  |  | — |  |  | (50) |  |  | (50) |
Income (loss) from continuing operations before income tax |  |  |  |  | $ | (3,560) |  |  | (91,217) |  |  | 72,471 |
Income tax expense |  |  |  |  |  |  | 15,617 |  |  | 15,617 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (106,834) |  |  | $ | 56,854 |
| Three Months Ended August 31, 2022
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 165,849 |  |  | $ | 240,861 |  |  | $ | — |  |  | $ | — |  |  | $ | 406,710 |
Cost of sales | 116,437 |  |  | 188,718 |  |  | — |  |  | — |  |  | 305,155 |
Gross margin | 49,412 |  |  | 52,143 |  |  | — |  |  | — |  |  | 101,555 |
Selling, general and administrative | 4,416 |  |  | 15,930 |  |  | — |  |  | 17,068 |  |  | 37,414 |
Operating income (loss) from continuing operations | $ | 44,996 |  |  | $ | 36,213 |  |  | — |  |  | (17,068) |  |  | 64,141 |
Interest expense |  |  |  |  | — |  |  | 28,144 |  |  | 28,144 |
Other (income) expense |  |  |  |  | — |  |  | 55 |  |  | 55 |
Income (loss) from continuing operations before income tax |  |  |  |  | $ | — |  |  | (45,267) |  |  | 35,942 |
Income tax expense |  |  |  |  |  |  | 10,822 |  |  | 10,822 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (56,089) |  |  | $ | 25,120 |
| Six Months Ended August 31, 2022
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 329,293 |  |  | $ | 284,551 |  |  | $ | — |  |  | $ | — |  |  | $ | 613,844 |
Cost of sales | 230,018 |  |  | 222,218 |  |  | — |  |  | — |  |  | 452,236 |
Gross margin | 99,275 |  |  | 62,333 |  |  | — |  |  | — |  |  | 161,608 |
Selling, general and administrative | 9,009 |  |  | 19,472 |  |  | — |  |  | 41,077 |  |  | 69,558 |
Operating income (loss) from continuing operations | $ | 90,266 |  |  | $ | 42,861 |  |  | — |  |  | (41,077) |  |  | 92,050 |
Interest expense |  |  |  |  | — |  |  | 35,615 |  |  | 35,615 |
Other (income) expense |  |  |  |  | — |  |  | 28 |  |  | 28 |
Income (loss) from continuing operations before income tax |  |  |  |  | $ | — |  |  | (76,720) |  |  | 56,407 |
Income tax expense |  |  |  |  |  |  | 15,922 |  |  | 15,922 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (92,642) |  |  | $ | 40,485 |
(1) Infrastructure Solutions segment includes the Company’s equity in (earnings) loss from its investment in the AVAIL JV, as well as other expenses related to receivables and liabilities that were retained by the Company following the sale of the AIS business. See Note 16 for a description of a legal settlement recognized during the three months ended August 31, 2023 related to AIS business.
(2) Interest expense, Other (income) expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(3) For fiscal year 2024, amortization expense for acquired intangible assets is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments.
Reconciliation of Assets from Segment to Consolidated | Asset balances by operating segment for each period were as follows (in thousands):
|  | As of
|  | August 31, 2023 |  | February 28, 2023
Assets: |  |  |  |
Metal Coatings |  | $ | 575,330 |  |  | $ | 588,337 |
Precoat Metals |  | 1,504,940 |  |  | 1,488,810 |
Infrastructure Solutions - Investment in Joint Venture |  | 85,535 |  |  | 84,760 |
Corporate |  | 48,756 |  |  | 59,572 |
Total assets |  | $ | 2,214,561 |  |  | $ | 2,221,479 |
Revenue from External Customers by Geographic Areas | Financial information about geographical areas for the periods presented was as follows (in thousands):
| Three Months Ended August 31, |  | Six Months Ended August 31,
| 2023 |  | 2022 |  | 2023 |  | 2022
Sales: |  |  |  |  |  |  |
United States | $ | 388,538 |  |  | $ | 393,835 |  |  | $ | 769,860 |  |  | $ | 588,195 |
Canada | 10,004 |  |  | 12,875 |  |  | 19,555 |  |  | 25,649 |
Total | $ | 398,542 |  |  | $ | 406,710 |  |  | $ | 789,415 |  |  | $ | 613,844 |
Long-lived Assets by Geographic Areas |
|  | As of
|  | August 31, 2023 |  | February 28, 2023
Property, plant and equipment, net: |  |  |  |
United States |  | $ | 496,972 |  |  | $ | 478,722 |
Canada |  | 19,527 |  |  | 19,781 |
Total |  | $ | 516,499 |  |  | $ | 498,503 |

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