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Operating segments (Tables) | 6 Months Ended
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Aug. 31, 2024
Segment Reporting [Abstract] |
Operations and assets by segment | three and six months ended August 31, 2024 and 2023 by segment, for the Company's corporate operations and on a consolidated basis (in thousands):
| Three Months Ended August 31, 2024
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 171,500 |  |  | $ | 237,507 |  |  | $ | — |  |  | $ | — |  |  | $ | 409,007 |
Cost of sales | 118,193 |  |  | 187,300 |  |  | — |  |  | — |  |  | 305,493 |
Gross margin | 53,307 |  |  | 50,207 |  |  | — |  |  | — |  |  | 103,514 |
Selling, general and administrative | 5,619 |  |  | 7,677 |  |  | 9 |  |  | 22,563 |  |  | 35,868 |
Operating income (loss) | 47,688 |  |  | 42,530 |  |  | (9) |  |  | (22,563) |  |  | 67,646 |
Interest expense | — |  |  | — |  |  | — |  |  | (21,909) |  |  | (21,909) |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | 1,478 |  |  | — |  |  | 1,478 |
Other (expense) income | (7) |  |  | — |  |  | — |  |  | 424 |  |  | 417 |
Income (loss) before income tax | $ | 47,681 |  |  | $ | 42,530 |  |  | $ | 1,469 |  |  | (44,048) |  |  | 47,632 |
Income tax expense |  |  |  |  |  |  | 12,213 |  |  | 12,213 |
Net income (loss) |  |  |  |  |  |  | $ | (56,261) |  |  | $ | 35,419 |
See notes below tables.
| Six Months Ended August 31, 2024
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | Total
Sales | $ | 348,152 |  |  | $ | 474,063 |  |  | $ | — |  |  | $ | — |  |  | $ | 822,215 |
Cost of sales | 240,929 |  |  | 375,102 |  |  | — |  |  | — |  |  | 616,031 |
Gross margin | 107,223 |  |  | 98,961 |  |  | — |  |  | — |  |  | 206,184 |
Selling, general and administrative | 11,602 |  |  | 16,338 |  |  | 38 |  |  | 40,811 |  |  | 68,789 |
Operating income (loss) | 95,621 |  |  | 82,623 |  |  | (38) |  |  | (40,811) |  |  | 137,395 |
Interest expense | — |  |  | — |  |  | — |  |  | (44,683) |  |  | (44,683) |
Equity in earnings of unconsolidated subsidiaries | — |  |  | — |  |  | 5,302 |  |  | — |  |  | 5,302 |
Other income | 49 |  |  | — |  |  | — |  |  | 572 |  |  | 621 |
Income (loss) before income tax | $ | 95,670 |  |  | $ | 82,623 |  |  | $ | 5,264 |  |  | (84,922) |  |  | 98,635 |
Income tax expense |  |  |  |  |  |  | 23,614 |  |  | 23,614 |
Net income (loss) |  |  |  |  |  |  | $ | (108,536) |  |  | $ | 75,021 |
See notes below tables.
| Three Months Ended August 31, 2023
| Metal Coatings |  | Precoat Metals |  | Infrastructure Solutions(1) |  | Corporate(2) |  | 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) | 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 | 13 |  |  | — |  |  | — |  |  | 75 |  |  | 88 |
Income (loss) before income tax | $ | 45,094 |  |  | $ | 39,006 |  |  | $ | (4,958) |  |  | (44,843) |  |  | 34,299 |
Income tax expense |  |  |  |  |  |  | 5,967 |  |  | 5,967 |
Net income (loss) |  |  |  |  |  |  | $ | (50,810) |  |  | $ | 28,332 |
See notes below tables.
| Six Months Ended August 31, 2023
| Metal Coatings |  | Precoat Metals(4) |  | Infrastructure Solutions(1) |  | Corporate(2) |  | 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) | 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) | (11) |  |  | — |  |  | — |  |  | 61 |  |  | 50 |
Income (loss) before income tax | $ | 90,541 |  |  | $ | 76,696 |  |  | $ | (3,560) |  |  | (91,206) |  |  | 72,471 |
Income tax expense |  |  |  |  |  |  | 15,617 |  |  | 15,617 |
Net income (loss) |  |  |  |  |  |  | $ | (106,823) |  |  | $ | 56,854 |
(1) Infrastructure Solutions segment includes the equity in earnings from our investment in the AVAIL JV as well as other expenses related to receivables and liabilities that were retained 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.
Reconciliation of Assets from Segment to Consolidated | Asset balances by operating segment for each period were as follows (in thousands):
|  | As of
|  | August 31, 2024 |  | February 29, 2024
Assets: |  |  |  |
Metal Coatings |  | $ | 550,394 |  |  | $ | 553,505 |
Precoat Metals |  | 1,557,895 |  |  | 1,500,122 |
Infrastructure Solutions - Investment in Joint Venture |  | 97,768 |  |  | 98,169 |
Corporate |  | 34,273 |  |  | 43,709 |
Total assets |  | $ | 2,240,330 |  |  | $ | 2,195,505 |
Revenue from External Customers by Geographic Areas | Financial information about geographical areas for the periods presented was as follows (in thousands). The geographic area is based on the location of the operating facility and no customer accounted for 10 percent or more of consolidated sales.
| Three Months Ended August 31, |  | Six Months Ended August 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Sales: |  |  |  |  |  |  |
United States | $ | 398,658 |  |  | $ | 388,538 |  |  | $ | 801,709 |  |  | $ | 769,860 |
Canada | 10,349 |  |  | 10,004 |  |  | 20,506 |  |  | 19,555 |
Total | $ | 409,007 |  |  | $ | 398,542 |  |  | $ | 822,215 |  |  | $ | 789,415 |
Long-lived Assets by Geographic Areas |
|  | As of
|  | August 31, 2024 |  | February 29, 2024
Property, plant and equipment, net: |  |  |  |
United States |  | $ | 550,761 |  |  | $ | 522,693 |
Canada |  | 18,971 |  |  | 18,959 |
Total |  | $ | 569,732 |  |  | $ | 541,652 |

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