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Operating segments (Tables) | 9 Months Ended
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Nov. 30, 2023
Segment Reporting [Abstract] |
Operations and assets by segment | Net income from continuing operations by segment for the three and nine months ended November 30, 2023 and 2022 was as follows (in thousands):
| Three Months Ended November 30, 2023
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 163,186 |  |  | $ | 218,419 |  |  | $ | — |  |  | $ | — |  |  | $ | 381,605 |
Cost of sales | 115,952 |  |  | 177,504 |  |  | — |  |  | — |  |  | 293,456 |
Gross margin | 47,234 |  |  | 40,915 |  |  | — |  |  | — |  |  | 88,149 |
Selling, general and administrative | 9,392 |  |  | 8,163 |  |  | 290 |  |  | 17,480 |  |  | 35,325 |
Operating income (loss) from continuing operations | 37,842 |  |  | 32,752 |  |  | (290) |  |  | (17,480) |  |  | 52,824 |
Interest expense | — |  |  | — |  |  | — |  |  | 25,855 |  |  | 25,855 |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | (8,742) |  |  | — |  |  | (8,742) |
Other expense | 29 |  |  | — |  |  | — |  |  | 12 |  |  | 41 |
Income (loss) from continuing operations before income tax | $ | 37,813 |  |  | $ | 32,752 |  |  | $ | 8,452 |  |  | (43,347) |  |  | 35,670 |
Income tax expense |  |  |  |  |  |  | 8,780 |  |  | 8,780 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (52,127) |  |  | $ | 26,890 |
| Nine Months Ended November 30, 2023
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 501,816 |  |  | $ | 669,204 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,171,020 |
Cost of sales | 353,280 |  |  | 535,326 |  |  | — |  |  | — |  |  | 888,606 |
Gross margin | 148,536 |  |  | 133,878 |  |  | — |  |  | — |  |  | 282,414 |
Selling, general and administrative | 20,143 |  |  | 24,429 |  |  | 6,244 |  |  | 52,271 |  |  | 103,087 |
Operating income (loss) from continuing operations | 128,393 |  |  | 109,449 |  |  | (6,244) |  |  | (52,271) |  |  | 179,327 |
Interest expense | — |  |  | — |  |  | — |  |  | 82,331 |  |  | 82,331 |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | (11,136) |  |  | — |  |  | (11,136) |
Other (income) expense | 40 |  |  | — |  |  | — |  |  | (49) |  |  | (9) |
Income (loss) from continuing operations before income tax | $ | 128,353 |  |  | $ | 109,449 |  |  | $ | 4,892 |  |  | (134,553) |  |  | 108,141 |
Income tax expense |  |  |  |  |  |  | 24,397 |  |  | 24,397 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (158,950) |  |  | $ | 83,744 |
(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.
(2) Interest 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.
| Three Months Ended November 30, 2022
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 158,274 |  |  | $ | 215,027 |  |  | $ | — |  |  | $ | — |  |  | $ | 373,301 |
Cost of sales | 120,134 |  |  | 180,085 |  |  | — |  |  | — |  |  | 300,219 |
Gross margin | 38,140 |  |  | 34,942 |  |  | — |  |  | — |  |  | 73,082 |
Selling, general and administrative | 4,594 |  |  | 13,889 |  |  | — |  |  | 9,206 |  |  | 27,689 |
Operating income (loss) from continuing operations | 33,546 |  |  | 21,053 |  |  | — |  |  | (9,206) |  |  | 45,393 |
Interest expense | — |  |  | — |  |  | — |  |  | 26,123 |  |  | 26,123 |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | (1,006) |  |  | — |  |  | (1,006) |
Other income | (124) |  |  | — |  |  | — |  |  | (486) |  |  | (610) |
Income (loss) from continuing operations before income tax | $ | 33,670 |  |  | $ | 21,053 |  |  | $ | 1,006 |  |  | (34,843) |  |  | 20,886 |
Income tax expense |  |  |  |  |  |  | 2,447 |  |  | 2,447 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (37,290) |  |  | $ | 18,439 |
| Nine Months Ended November 30, 2022
| Metal Coatings |  | Precoat Metals(4) |  | Infrastructure Solutions(1) |  | Corporate(2)(3) |  | Total
Sales | $ | 487,567 |  |  | $ | 499,578 |  |  | $ | — |  |  | $ | — |  |  | $ | 987,145 |
Cost of sales | 350,152 |  |  | 402,303 |  |  | — |  |  | — |  |  | 752,455 |
Gross margin | 137,415 |  |  | 97,275 |  |  | — |  |  | — |  |  | 234,690 |
Selling, general and administrative | 13,603 |  |  | 33,361 |  |  | — |  |  | 50,283 |  |  | 97,247 |
Operating income (loss) from continuing operations | 123,812 |  |  | 63,914 |  |  | — |  |  | (50,283) |  |  | 137,443 |
Interest expense | — |  |  | — |  |  | — |  |  | 61,739 |  |  | 61,739 |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | (1,006) |  |  | — |  |  | (1,006) |
Other (income) expense | 6 |  |  | (41) |  |  | — |  |  | (547) |  |  | (582) |
Income (loss) from continuing operations before income tax | $ | 123,806 |  |  | $ | 63,955 |  |  | $ | 1,006 |  |  | (111,475) |  |  | 77,292 |
Income tax expense |  |  |  |  |  |  | 18,380 |  |  | 18,380 |
Net income (loss) from continuing operations |  |  |  |  |  |  | $ | (129,855) |  |  | $ | 58,912 |
(1) Infrastructure Solutions segment includes the Company’s equity in (earnings) loss from its investment in the AVAIL JV.
(2) Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(3) For fiscal year 2023, amortization expense for acquired intangible assets is included in Metal Coatings expenses in "Cost of sales" and in Precoat Metals in "Selling, general and administrative" expense.
(4) For the nine months ended November 30, 2022, Precoat Metals segment includes results from May 13, 2022 - November 30, 2022.
Reconciliation of Assets from Segment to Consolidated | Asset balances by operating segment for each period were as follows (in thousands):
|  | As of
|  | November 30, 2023 |  | February 28, 2023
Assets: |  |  |  |
Metal Coatings |  | $ | 559,149 |  |  | $ | 588,337 |
Precoat Metals |  | 1,504,828 |  |  | 1,488,810 |
Infrastructure Solutions - Investment in Joint Venture |  | 97,238 |  |  | 84,760 |
Corporate |  | 47,541 |  |  | 59,572 |
Total assets |  | $ | 2,208,756 |  |  | $ | 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 November 30, |  | Nine Months Ended November 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Sales: |  |  |  |  |  |  |
United States | $ | 370,485 |  |  | $ | 363,660 |  |  | $ | 1,140,344 |  |  | $ | 951,855 |
Canada | 11,120 |  |  | 9,641 |  |  | 30,676 |  |  | 35,290 |
Total | $ | 381,605 |  |  | $ | 373,301 |  |  | $ | 1,171,020 |  |  | $ | 987,145 |
Long-lived Assets by Geographic Areas |
|  | As of
|  | November 30, 2023 |  | February 28, 2023
Property, plant and equipment, net: |  |  |  |
United States |  | $ | 506,070 |  |  | $ | 478,722 |
Canada |  | 19,268 |  |  | 19,781 |
Total |  | $ | 525,338 |  |  | $ | 498,503 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482573/350-20-50-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-25 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-30 + Details
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