Worthington Industries, Inc. (NYSE: WOR) today reported net sales
of $1.2 billion and net earnings of $16.2 million, or $0.33 per
diluted share, for its fiscal 2023 second quarter ended November
30, 2022. In the second quarter of fiscal 2022, the Company
reported net sales of $1.2 billion and net earnings of $110.3
million, or $2.15 per diluted share. Results in both the current
and prior year quarter were impacted by certain unique items, as
summarized in the table below.
(U.S. dollars in millions, except per share
amounts)
|
|
|
2Q 2023 |
|
|
2Q 2022 |
|
|
|
|
After-Tax |
|
|
Per Share |
|
|
After-Tax |
|
|
Per Share |
|
|
Net earnings |
|
$ |
16.2 |
|
|
$ |
0.33 |
|
|
$ |
110.3 |
|
|
$ |
2.15 |
|
|
Incremental expense related to Level5 earnout |
|
|
0.4 |
|
|
|
0.01 |
|
|
|
- |
|
|
|
- |
|
|
Restructuring gains |
|
|
(1.8 |
) |
|
|
(0.04 |
) |
|
|
(1.5 |
) |
|
|
(0.03 |
) |
|
Separation costs |
|
|
7.0 |
|
|
|
0.14 |
|
|
|
- |
|
|
|
- |
|
|
Adjusted net earnings |
|
$ |
21.8 |
|
|
$ |
0.44 |
|
|
$ |
108.8 |
|
|
$ |
2.12 |
|
Financial highlights for the current and
comparative periods are as follows:
(U.S. dollars in millions, except per share
amounts)
|
|
2Q 2023 |
|
|
2Q 2022 |
|
|
6M 2023 |
|
|
6M 2022 |
|
|
Net sales |
$ |
1,175.5 |
|
|
$ |
1,232.9 |
|
|
$ |
2,584.2 |
|
|
$ |
2,343.7 |
|
|
Operating income (loss) |
|
(7.0 |
) |
|
|
90.5 |
|
|
|
59.7 |
|
|
|
226.3 |
|
|
Equity income |
|
36.9 |
|
|
|
60.2 |
|
|
|
68.6 |
|
|
|
113.1 |
|
|
Net earnings |
|
16.2 |
|
|
|
110.3 |
|
|
|
80.3 |
|
|
|
242.8 |
|
|
Earnings per diluted share |
$ |
0.33 |
|
|
$ |
2.15 |
|
|
$ |
1.63 |
|
|
$ |
4.71 |
|
“We faced significant headwinds in the quarter
from the dramatic decline in steel prices, a slowing economy and
customers reducing inventory levels. Our teams navigated those
challenges admirably focusing on execution and continuing to
enhance our value proposition for customers,” said Andy Rose,
President and CEO.
Consolidated Quarterly
Results
Net sales for the second quarter of fiscal 2023
were $1.2 billion, a decrease of $57.4 million, or 5%, from the
comparable quarter in the prior year. The decrease was driven by
lower average selling prices in Steel Processing, partially offset
by the impact of acquisitions and higher average selling prices
across the Consumer Products, Building Products, and Sustainable
Energy Solutions businesses.
Gross margin decreased $78.8 million from the
prior year quarter to $105.8 million due to lower contributions
from Steel Processing, down $79.7 million, as declining steel
prices resulted in an estimated $95.2 million unfavorable swing
related to inventory holding losses in the current quarter compared
to inventory holding gains in the prior year quarter.
The Company generated an operating loss of $7.0
million in the current quarter compared to operating income of
$90.5 million in the prior year quarter. Results in the current
quarter included $9.2 million of incremental pre-tax costs incurred
in connection with the planned separation of the Company’s Steel
Processing business. Excluding these incremental costs and the net
restructuring gains in both the current and prior year quarter,
operating income was down $90.0 million on the combined impact of
lower gross margin and higher SG&A expense, which was up $11.7
million due to the impact of acquisitions, partially offset by
lower profit sharing and bonus expense.
Interest expense was $7.6 million in the current
quarter, up $0.3 million over the prior year quarter due to the
impact of higher average debt levels associated with short-term
borrowings.
Equity income from unconsolidated joint ventures
decreased $23.4 million from the prior year quarter driven by lower
contributions from ClarkDietrich, Serviacero and WAVE.
Income tax expense was $4.1 million in the
current quarter compared to $31.2 million in the prior year
quarter. The decrease was driven by lower pre-tax earnings. Tax
expense in the current quarter reflects an estimated annual
effective rate of 23.7% compared to 22.8% for the prior year.
Balance Sheet
At quarter-end, total debt of $698.6 million,
was down $46.0 million from May 31, 2022, on lower short-term
borrowings. The Company had $129.6 million of cash at quarter end,
an increase of $95.1 million from May 31, 2022.
Quarterly Segment Results
Steel Processing’s net sales totaled $841.9
million, down $95.9 million, from the prior year quarter. The
decrease was driven primarily by lower average selling prices and
to a lesser extent lower volumes, partially offset by the impact of
acquisitions. Adjusted EBIT was down $89.1 million from the prior
year quarter to a loss of $17.2 million on lower contributions from
both operating income and equity income. Excluding restructuring,
operating income was down $84.4 million from the prior year quarter
driven by an estimated $95.2 million unfavorable swing related to
estimated inventory holding losses of $53.1 million in the current
quarter compared to inventory holding gains of $42.1 million in the
prior year quarter. Adjusted EBIT was also negatively impacted by
lower equity income at Serviacero, down $6.9 million from the prior
year quarter, as lower steel prices reduced spreads. The mix of
direct versus toll tons processed was 54% to 46% in the current
quarter, compared to 47% to 53% in the prior year quarter.
Consumer Products’ net sales totaled $153.8
million, up 9%, or $13.0 million, over the prior year quarter as
higher average selling prices more than offset the impact of lower
overall volume. Adjusted EBIT was down $4.1 million in the current
quarter to $13.5 million, as the favorable impact of higher average
selling prices was more than offset by lower volumes and higher
input and production costs.
Building Products’ net sales totaled $141.7
million, up 17%, or $20.6 million, over the prior year quarter on
higher average selling prices, partially offset by lower volumes.
Adjusted EBIT decreased $13.5 million from the prior year quarter
to $41.2 million, due to lower contributions of equity income from
unconsolidated joint ventures which were down $14.8 million,
partially offset by higher operating income from our wholly owned
businesses which was up $1.4 million on the impact of higher
average selling prices and a favorable product mix. Equity income
from unconsolidated joint ventures for the current quarter totaled
$35.1 million with lower contributions from both ClarkDietrich and
WAVE which were down $11.4 million and $3.4 million,
respectively.
Sustainable Energy Solutions’ net sales totaled
$38.1 million, up 15%, or $5.0 million, from the prior year quarter
due to higher average selling prices. Adjusted EBIT increased $0.3
million over the prior year quarter to $1.1 million on the
favorable impact of higher average selling prices, partially offset
by higher production costs.
Worthington 2024
On September 29, 2022, the Company announced
that its Board of Directors approved a plan to pursue a separation
of the Company’s Steel Processing business which it expects to
complete by 2024. In the months ahead, this plan will be referred
to as “Worthington 2024.” Worthington 2024 will result in two
independent, publicly traded companies that are more specialized
and fit-for-purpose, with enhanced prospects for growth and value
creation. Worthington plans to effect the separation via a
distribution of stock of the Steel Processing business, which is
expected to be tax-free to shareholders for U.S. federal income tax
purposes. A dedicated area of the Company’s website will have more
information as it is available at
www.WorthingtonIndustries.com/W24.
Recent Developments
- On October 31, 2022, the Company’s
consolidated joint venture, WSP, sold its remaining manufacturing
facility, located in Jackson, Michigan, for total consideration of
approximately $21.5 million, resulting in a pre-tax gain of $3.9
million recorded within restructuring and other income, net.
- On December 20, 2022, Worthington’s
Board of Directors declared a quarterly dividend of $0.31 per share
payable on March 29, 2023, to shareholders of record at the close
of business on March 15, 2023.
Outlook
“Despite a somewhat murky economic outlook,
steel prices appear to have stabilized and we believe many of our
customers have returned to seasonally normal inventory levels. End
market demand remains solid across most markets, and we are
optimistic about our start to 2023,” Rose said. “We continue to
make progress on our previously announced business separation
(Worthington 2024) and remain confident that the separation will
enhance shareholder value by creating two distinct, market-leading
companies with strong cash flows that are better positioned to
pursue their respective growth strategies while delivering superior
returns for shareholders.”
Conference Call
Worthington will review fiscal 2023 second
quarter results during its quarterly conference call on December
21, 2022, at 8:30 a.m., Eastern Time. Details regarding the
conference call can be found on the Company website at
www.WorthingtonIndustries.com.
About Worthington
Industries
Worthington Industries (NYSE:WOR) is a leading
industrial manufacturing company pursuing its vision to be the
transformative partner to its customers, a positive force for its
communities and earn exceptional returns for its shareholders. For
over six decades, the Company has been delivering innovative
solutions to customers spanning industries such as automotive,
energy, retail and construction. Worthington is North America’s
premier value-added steel processor and producer of laser welded
solutions and electrical steel laminations that provide
lightweighting, safety critical and emission reducing components to
the mobility market. Through on-board fueling systems and gas
containment solutions, Worthington serves the growing global
hydrogen ecosystem. The Company’s focus on innovation and
manufacturing expertise extends to market-leading consumer products
in tools, outdoor living and celebrations categories, sold under
brand names, Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®,
Well-X-Trol®, General®, Garden-Weasel®, Pactool International®,
Hawkeye™ and Level5® ; as well as market leading building products,
including water systems, heating & cooling solutions,
architectural and acoustical grid ceilings and metal framing and
accessories. Headquartered in Columbus, Ohio, Worthington operates
52 facilities in 15 states and nine countries, sells into over 90
countries and employs approximately 9,500 people. Founded in 1955,
the Company follows a people-first philosophy with earning money
for its shareholders as its first corporate goal. Relentlessly
finding new ways to drive progress and transform, Worthington is
committed to providing better solutions for customers and bettering
the communities where it operates by reducing waste, supporting
community-based non-profits and developing the next generations of
makers.
Safe Harbor Statement
The Company wishes to take advantage of the Safe
Harbor provisions included in the Private Securities Litigation
Reform Act of 1995 (the “Act”). Statements by the Company relating
to the ever-changing effects of the novel coronavirus (“COVID-19”)
pandemic and the various responses of governmental and
nongovernmental authorities thereto (such as fiscal stimulus
packages, quarantines, shut downs and other restrictions on travel
and commercial, social or other activities) on economies (local,
national and international) and markets, and on our customers,
counterparties, employees and third-party service providers; future
or expected cash positions, liquidity and ability to access
financial markets and capital; outlook, strategy or business plans;
the intended separation of the Company’s Steel Processing business
(the “Separation”); the timing and method of the Separation; the
anticipated benefits of the Separation; the expected financial and
operational performance of, and future opportunities for, each of
the two independent, publicly-traded companies following the
Separation; the tax treatment of the Separation transaction; the
leadership of each of the two independent, publicly-traded
companies following the Separation; future or expected growth,
growth potential, forward momentum, performance, competitive
position, sales, volumes, cash flows, earnings, margins, balance
sheet strengths, debt, financial condition or other financial
measures; pricing trends for raw materials and finished goods and
the impact of pricing changes; the ability to improve or maintain
margins; expected demand or demand trends for the Company or its
markets; additions to product lines and opportunities to
participate in new markets; expected benefits from transformation
and innovation efforts; the ability to improve performance and
competitive position at the Company’s operations; anticipated
working capital needs, capital expenditures and asset sales;
anticipated improvements and efficiencies in costs, operations,
sales, inventory management, sourcing and the supply chain and the
results thereof; projected profitability potential; the ability to
make acquisitions and the projected timing, results, benefits,
costs, charges and expenditures related to acquisitions, joint
ventures, headcount reductions and facility dispositions, shutdowns
and consolidations; projected capacity and the alignment of
operations with demand; the ability to operate profitably and
generate cash in down markets; the ability to capture and maintain
market share and to develop or take advantage of future
opportunities, customer initiatives, new businesses, new products
and new markets; expectations for Company and customer inventories,
jobs and orders; expectations for the economy and markets or
improvements therein; expectations for generating improving and
sustainable earnings, earnings potential, margins or shareholder
value; effects of judicial rulings; and other non-historical
matters constitute “forward-looking statements” within the meaning
of the Act. Forward-looking statements may be characterized by
terms such as “believe,” “expect,” “anticipate,” “may,” “could,”
“should,” “would,” “intend,” “plan,” “will,” “likely,” “estimate,”
“project,” “positioned,” “strategy,” “targets,” “aims,” “seek,”
“foresee” and similar expressions. Because they are based on
beliefs, estimates and assumptions, forward-looking statements are
inherently subject to risks and uncertainties that could cause
actual results to differ materially from those projected. Any
number of factors could affect actual results, including, without
limitation, those that follow: obtaining final approval of the
Separation by the Worthington Industries, Inc. Board of Directors;
the uncertainty of obtaining regulatory approvals in connection
with the Separation, including rulings from the Internal Revenue
Service; the ability to satisfy the necessary closing conditions to
complete the Separation on a timely basis, or at all; the Company’s
ability to successfully separate the two independent companies and
realize the anticipated benefits of the Separation; the risks,
uncertainties and impacts related to the COVID-19 pandemic – the
duration, extent and severity of which are impossible to predict,
including the possibility of future resurgence in the spread of
COVID-19 or variants thereof – and the availability, effectiveness
and acceptance of vaccines, and other actual or potential public
health emergencies and actions taken by governmental authorities or
others in connection therewith; the effect of national, regional
and global economic conditions generally and within major product
markets, including significant economic disruptions from COVID-19,
the actions taken in connection therewith and the implementation of
related fiscal stimulus packages; the effect of conditions in
national and worldwide financial markets, including inflation,
increases in interest rates and economic recession, and with
respect to the ability of financial institutions to provide
capital; the impact of tariffs, the adoption of trade restrictions
affecting the Company’s products or suppliers, a United States
withdrawal from or significant renegotiation of trade agreements,
the occurrence of trade wars, the closing of border crossings, and
other changes in trade regulations or relationships; changing oil
prices and/or supply; product demand and pricing; changes in
product mix, product substitution and market acceptance of the
Company’s products; volatility or fluctuations in the pricing,
quality or availability of raw materials (particularly steel),
supplies, transportation, utilities, labor and other items required
by operations (especially in light of the COVID-19 pandemic and
Russia’s invasion of Ukraine); effects of sourcing and supply chain
constraints; the outcome of adverse claims experience with respect
to workers’ compensation, product recalls or product liability,
casualty events or other matters; effects of facility closures and
the consolidation of operations; the effect of financial
difficulties, consolidation and other changes within the steel,
automotive, construction and other industries in which the Company
participates; failure to maintain appropriate levels of
inventories; financial difficulties (including bankruptcy filings)
of original equipment manufacturers, end-users and customers,
suppliers, joint venture partners and others with whom the Company
does business; the ability to realize targeted expense reductions
from headcount reductions, facility closures and other cost
reduction efforts; the ability to realize cost savings and
operational, sales and sourcing improvements and efficiencies, and
other expected benefits from transformation initiatives, on a
timely basis; the overall success of, and the ability to integrate,
newly-acquired businesses and joint ventures, maintain and develop
their customers, and achieve synergies and other expected benefits
and cost savings therefrom; capacity levels and efficiencies,
within facilities, within major product markets and within the
industries in which the Company participates as a whole; the effect
of disruption in the business of suppliers, customers, facilities
and shipping operations due to adverse weather, casualty events,
equipment breakdowns, labor shortages (especially in light of the
COVID-19 pandemic), interruption in utility services, civil unrest,
international conflicts (especially in light of Russia’s invasion
of Ukraine), terrorist activities or other causes; changes in
customer demand, inventories, spending patterns, product choices,
and supplier choices; risks associated with doing business
internationally, including economic, political and social
instability (especially in light of Russia’s invasion of Ukraine),
foreign currency exchange rate exposure and the acceptance of the
Company’s products in global markets; the ability to improve and
maintain processes and business practices to keep pace with the
economic, competitive and technological environment; the effect of
inflation, interest rate increases and economic recession, which
may negatively impact the Company’s operations and financial
results; deviation of actual results from estimates and/or
assumptions used by the Company in the application of its
significant accounting policies; the level of imports and import
prices in the Company’s markets; the impact of environmental laws
and regulations or the actions of the United States Environmental
Protection Agency or similar regulators which increase costs or
limit the Company’s ability to use or sell certain products; the
impact of increasing environmental, greenhouse gas emission and
sustainability considerations or regulations; the impact of
judicial rulings and governmental regulations, both in the United
States and abroad, including those adopted by the United States
Securities and Exchange Commission and other governmental agencies
as contemplated by the Coronavirus Aid, Relief and Economic
Security (CARES) Act, the Consolidated Appropriations Act, 2021,
the American Rescue Act of 2021, and the Dodd-Frank Wall Street
Reform and the Consumer Protection Act of 2010; the effect of
healthcare laws in the United States and potential changes for such
laws, especially in light of the COVID-19 pandemic, which may
increase the Company’s healthcare and other costs and negatively
impact the Company’s operations and financial results; the effects
of tax laws in the United States and potential changes for such
laws, which may increase the Company’s costs and negatively impact
the Company’s operations and financial results; cyber security
risks; the effects of privacy and information security laws and
standards; and other risks described from time to time in the
filings of Worthington Industries, Inc. with the United States
Securities and Exchange Commission, including those described in
“Part I – Item 1A. – Risk Factors” of the Annual Report on Form
10-K of Worthington Industries, Inc. for the fiscal year ended May
31, 2022.
| |
| WORTHINGTON
INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF
EARNINGS(In thousands, except per share
amounts) |
| |
|
|
|
|
|
| |
Three Months Ended |
|
|
Six Months Ended |
|
|
|
November 30, |
|
|
November 30, |
|
|
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Net sales |
$ |
1,175,541 |
|
|
$ |
1,232,861 |
|
|
$ |
2,584,206 |
|
|
$ |
2,343,679 |
|
| Cost of
goods sold |
|
1,069,778 |
|
|
|
1,048,270 |
|
|
|
2,309,069 |
|
|
|
1,939,714 |
|
|
Gross margin |
|
105,763 |
|
|
|
184,591 |
|
|
|
275,137 |
|
|
|
403,965 |
|
| Selling,
general and administrative expense |
|
107,813 |
|
|
|
96,130 |
|
|
|
211,261 |
|
|
|
191,981 |
|
| Impairment
of long-lived assets |
|
- |
|
|
|
- |
|
|
|
312 |
|
|
|
- |
|
|
Restructuring and other income, net |
|
(4,282 |
) |
|
|
(2,004 |
) |
|
|
(5,382 |
) |
|
|
(14,278 |
) |
| Separation
costs |
|
9,246 |
|
|
|
- |
|
|
|
9,246 |
|
|
|
- |
|
|
Operating income (loss) |
|
(7,014 |
) |
|
|
90,465 |
|
|
|
59,700 |
|
|
|
226,262 |
|
| Other income
(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income (expense), net |
|
1,405 |
|
|
|
1,040 |
|
|
|
(3,681 |
) |
|
|
1,670 |
|
|
Interest expense |
|
(7,612 |
) |
|
|
(7,312 |
) |
|
|
(16,210 |
) |
|
|
(15,030 |
) |
|
Equity in net income of unconsolidated affiliates |
|
36,857 |
|
|
|
60,218 |
|
|
|
68,569 |
|
|
|
113,134 |
|
|
Earnings before income taxes |
|
23,636 |
|
|
|
144,411 |
|
|
|
108,378 |
|
|
|
326,036 |
|
| Income tax
expense |
|
4,131 |
|
|
|
31,226 |
|
|
|
23,629 |
|
|
|
71,376 |
|
| Net
earnings |
|
19,505 |
|
|
|
113,185 |
|
|
|
84,749 |
|
|
|
254,660 |
|
| Net earnings
attributable to noncontrolling interests |
|
3,287 |
|
|
|
2,884 |
|
|
|
4,449 |
|
|
|
11,868 |
|
| Net
earnings attributable to controlling interest |
$ |
16,218 |
|
|
$ |
110,301 |
|
|
$ |
80,300 |
|
|
$ |
242,792 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
| Weighted
average common shares outstanding |
|
48,558 |
|
|
|
50,381 |
|
|
|
48,518 |
|
|
|
50,618 |
|
|
Earnings per share attributable to controlling
interest |
$ |
0.33 |
|
|
$ |
2.19 |
|
|
$ |
1.66 |
|
|
$ |
4.80 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
| Weighted
average common shares outstanding |
|
49,330 |
|
|
|
51,214 |
|
|
|
49,293 |
|
|
|
51,532 |
|
|
Earnings per share attributable to controlling
interest |
$ |
0.33 |
|
|
$ |
2.15 |
|
|
$ |
1.63 |
|
|
$ |
4.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Common
shares outstanding at end of period |
|
48,572 |
|
|
|
50,334 |
|
|
|
48,572 |
|
|
|
50,334 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
| Cash
dividends declared per share |
$ |
0.31 |
|
|
$ |
0.28 |
|
|
$ |
0.62 |
|
|
$ |
0.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| CONSOLIDATED
BALANCE SHEETSWORTHINGTON INDUSTRIES,
INC.(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
November 30, |
|
|
May 31, |
|
|
|
|
2022 |
|
|
2022 |
|
|
Assets |
|
|
|
|
|
|
| Current
assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
129,596 |
|
|
$ |
34,485 |
|
|
Receivables, less allowances of $2,679 and $1,292 at November 30,
2022 and May 31, 2022, respectively |
|
|
694,668 |
|
|
|
857,493 |
|
|
Inventories: |
|
|
|
|
|
|
|
Raw materials |
|
|
304,692 |
|
|
|
323,609 |
|
|
Work in process |
|
|
159,772 |
|
|
|
255,019 |
|
|
Finished products |
|
|
190,160 |
|
|
|
180,512 |
|
|
Total inventories |
|
|
654,624 |
|
|
|
759,140 |
|
|
Income taxes receivable |
|
|
19,834 |
|
|
|
20,556 |
|
|
Assets held for sale |
|
|
5,191 |
|
|
|
20,318 |
|
|
Prepaid expenses and other current assets |
|
|
98,873 |
|
|
|
93,661 |
|
|
Total current assets |
|
|
1,602,786 |
|
|
|
1,785,653 |
|
| Investments
in unconsolidated affiliates |
|
|
240,859 |
|
|
|
327,381 |
|
| Operating
lease assets |
|
|
103,488 |
|
|
|
98,769 |
|
|
Goodwill |
|
|
412,971 |
|
|
|
401,469 |
|
| Other intangible assets, net of accumulated amortization of
$102,561 and $93,973 at November 30, 2022 and May 31, 2022,
respectively |
|
|
322,934 |
|
|
|
299,017 |
|
| Other
assets |
|
|
25,439 |
|
|
|
34,394 |
|
| Property,
plant and equipment: |
|
|
|
|
|
|
|
Land |
|
|
49,644 |
|
|
|
51,483 |
|
|
Buildings and improvements |
|
|
302,999 |
|
|
|
303,269 |
|
|
Machinery and equipment |
|
|
1,223,841 |
|
|
|
1,196,806 |
|
|
Construction in progress |
|
|
60,673 |
|
|
|
59,363 |
|
|
Total property, plant and equipment |
|
|
1,637,157 |
|
|
|
1,610,921 |
|
|
Less: accumulated depreciation |
|
|
954,974 |
|
|
|
914,581 |
|
|
Total property, plant and equipment, net |
|
|
682,183 |
|
|
|
696,340 |
|
|
Total assets |
|
$ |
3,390,660 |
|
|
$ |
3,643,023 |
|
| |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
| Current
liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
481,273 |
|
|
$ |
668,438 |
|
|
Short-term borrowings |
|
|
4,935 |
|
|
|
47,997 |
|
|
Accrued compensation, contributions to employee benefit plans and
related taxes |
|
|
86,998 |
|
|
|
117,530 |
|
|
Dividends payable |
|
|
17,663 |
|
|
|
15,988 |
|
|
Other accrued items |
|
|
58,046 |
|
|
|
70,125 |
|
|
Current operating lease liabilities |
|
|
11,719 |
|
|
|
11,618 |
|
|
Income taxes payable |
|
|
- |
|
|
|
300 |
|
|
Current maturities of long-term debt |
|
|
257 |
|
|
|
265 |
|
|
Total current liabilities |
|
|
660,891 |
|
|
|
932,261 |
|
| Other
liabilities |
|
|
115,688 |
|
|
|
115,991 |
|
|
Distributions in excess of investment in unconsolidated
affiliate |
|
|
91,643 |
|
|
|
81,149 |
|
| Long-term
debt |
|
|
693,453 |
|
|
|
696,345 |
|
| Noncurrent
operating lease liabilities |
|
|
93,513 |
|
|
|
88,183 |
|
| Deferred
income taxes, net |
|
|
96,180 |
|
|
|
115,132 |
|
|
Total liabilities |
|
|
1,751,368 |
|
|
|
2,029,061 |
|
|
Shareholders' equity - controlling interest |
|
|
1,513,393 |
|
|
|
1,480,752 |
|
|
Noncontrolling interests |
|
|
125,899 |
|
|
|
133,210 |
|
|
Total equity |
|
|
1,639,292 |
|
|
|
1,613,962 |
|
|
Total liabilities and equity |
|
$ |
3,390,660 |
|
|
$ |
3,643,023 |
|
| |
|
|
|
|
|
|
|
|
| |
| WORTHINGTON
INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands) |
| |
|
|
|
|
|
| |
Three Months Ended |
|
|
Six Months Ended |
|
| |
November 30, |
|
|
November 30, |
|
| |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
$ |
19,505 |
|
|
$ |
113,185 |
|
|
$ |
84,749 |
|
|
$ |
254,660 |
|
| Adjustments
to reconcile net earnings to net cash provided (used) by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
28,354 |
|
|
|
21,090 |
|
|
|
56,355 |
|
|
|
43,154 |
|
|
Impairment of long-lived assets |
|
- |
|
|
|
- |
|
|
|
312 |
|
|
|
- |
|
|
Provision for (benefit from) deferred income taxes |
|
(3,617 |
) |
|
|
1,309 |
|
|
|
(14,673 |
) |
|
|
2,675 |
|
|
Bad debt expense |
|
1,098 |
|
|
|
335 |
|
|
|
1,440 |
|
|
|
514 |
|
|
Equity in net income of unconsolidated affiliates, net of
distributions |
|
18,352 |
|
|
|
(31,274 |
) |
|
|
61,197 |
|
|
|
(64,492 |
) |
|
Net gain on sale of assets |
|
(4,265 |
) |
|
|
(496 |
) |
|
|
(5,034 |
) |
|
|
(13,202 |
) |
|
Stock-based compensation |
|
4,547 |
|
|
|
4,248 |
|
|
|
8,783 |
|
|
|
7,551 |
|
| Changes in
assets and liabilities, net of impact of acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
119,674 |
|
|
|
(89,817 |
) |
|
|
157,093 |
|
|
|
(121,685 |
) |
|
Inventories |
|
72,293 |
|
|
|
(97,182 |
) |
|
|
113,460 |
|
|
|
(260,864 |
) |
|
Accounts payable |
|
(100,535 |
) |
|
|
(47,594 |
) |
|
|
(202,116 |
) |
|
|
(926 |
) |
|
Accrued compensation and employee benefits |
|
3,336 |
|
|
|
14,358 |
|
|
|
(30,532 |
) |
|
|
(31,819 |
) |
|
Income taxes payable |
|
(7,629 |
) |
|
|
(22,922 |
) |
|
|
(300 |
) |
|
|
12,935 |
|
|
Other operating items, net |
|
(18,172 |
) |
|
|
15,656 |
|
|
|
(16,755 |
) |
|
|
2,583 |
|
| Net
cash provided (used) by operating activities |
|
132,941 |
|
|
|
(119,104 |
) |
|
|
213,979 |
|
|
|
(168,916 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Investment in property, plant and equipment |
|
(24,490 |
) |
|
|
(24,234 |
) |
|
|
(45,967 |
) |
|
|
(48,159 |
) |
|
Investment in non-marketable equity securities |
|
(140 |
) |
|
|
- |
|
|
|
(250 |
) |
|
|
- |
|
|
Acquisitions, net of cash acquired |
|
- |
|
|
|
(3,000 |
) |
|
|
(56,088 |
) |
|
|
(107,750 |
) |
|
Proceeds from the sale of investment in ArtiFlex |
|
- |
|
|
|
- |
|
|
|
36,095 |
|
|
|
- |
|
|
Proceeds from sale of assets, net of selling costs |
|
23,739 |
|
|
|
5,136 |
|
|
|
35,494 |
|
|
|
31,821 |
|
| Net
cash used by investing activities |
|
(891 |
) |
|
|
(22,098 |
) |
|
|
(30,716 |
) |
|
|
(124,088 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Net repayments of short-term borrowings |
|
(10,619 |
) |
|
|
- |
|
|
|
(43,062 |
) |
|
|
- |
|
|
Principal payments on long-term obligations |
|
(13 |
) |
|
|
(10 |
) |
|
|
(150 |
) |
|
|
(402 |
) |
|
Proceeds from issuance of common shares, net of tax
withholdings |
|
(649 |
) |
|
|
(2,694 |
) |
|
|
(4,115 |
) |
|
|
(6,785 |
) |
|
Payments to noncontrolling interests |
|
(11,760 |
) |
|
|
(2,879 |
) |
|
|
(11,760 |
) |
|
|
(12,076 |
) |
|
Repurchase of common shares |
|
- |
|
|
|
(12,702 |
) |
|
|
- |
|
|
|
(73,587 |
) |
|
Dividends paid |
|
(15,181 |
) |
|
|
(14,565 |
) |
|
|
(29,065 |
) |
|
|
(29,263 |
) |
| Net
cash used by financing activities |
|
(38,222 |
) |
|
|
(32,850 |
) |
|
|
(88,152 |
) |
|
|
(122,113 |
) |
| Increase
(decrease) in cash and cash equivalents |
|
93,828 |
|
|
|
(174,052 |
) |
|
|
95,111 |
|
|
|
(415,117 |
) |
| Cash and
cash equivalents at beginning of period |
|
35,768 |
|
|
|
399,246 |
|
|
|
34,485 |
|
|
|
640,311 |
|
| Cash
and cash equivalents at end of period |
$ |
129,596 |
|
|
$ |
225,194 |
|
|
$ |
129,596 |
|
|
$ |
225,194 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA
(In thousands, except volume and per share
amounts)
The Company reports its financial results in
accordance with accounting principles generally accepted in the
United States (GAAP). The Company also presents certain non-GAAP
financial measures including adjusted operating income (loss),
adjusted net earnings attributable to controlling interest and
adjusted net earnings per diluted share attributable to controlling
interest, and for purposes of evaluating segment performance,
adjusted earnings (loss) before interest and taxes attributable to
controlling interest (“adjusted EBIT”) and adjusted earnings (loss)
before interest, taxes, depreciation and amortization attributable
to controlling interest (“adjusted EBITDA”). These non-GAAP
financial measures typically exclude impairment and restructuring
charges (gains), but may also exclude other items that management
believes are not reflective of, and thus should not be included
when evaluating the performance of the Company’s ongoing
operations. Management uses these non-GAAP financial measures to
evaluate the Company’s performance, engage in financial and
operational planning, and determine incentive compensation and
believes these non-GAAP financial measures provide useful
information to investors because they provide additional
perspective and, in some circumstances are more closely correlated
to, the performance of the Company’s ongoing operations.
Additionally, management believes these non-GAAP financial measures
provide useful information to investors because they allow for
meaningful comparisons and analysis of trends in the Company’s
businesses and enables investors to evaluate operations and future
prospects in the same manner as management.
The following provides a reconciliation to
adjusted operating income, adjusted net earnings attributable to
controlling interest and adjusted earnings per diluted share
attributable to controlling interest from the most comparable GAAP
measures for the three months ended November 30, 2022 and 2021.
| |
|
Three Months Ended November 30, 2022 |
|
|
|
|
OperatingLoss |
|
|
Earnings BeforeIncome Taxes |
|
|
Income TaxExpense (Benefit) |
|
|
Net EarningsAttributable toControlling Interest(1) |
|
|
Earnings perDiluted Share |
|
|
GAAP |
|
$ |
(7,014 |
) |
|
$ |
23,636 |
|
|
$ |
4,131 |
|
|
$ |
16,218 |
|
|
$ |
0.33 |
|
| Incremental
expense related to Level5 earnout |
|
|
525 |
|
|
|
525 |
|
|
|
(127 |
) |
|
|
398 |
|
|
|
0.01 |
|
|
Restructuring and other income, net |
|
|
(4,282 |
) |
|
|
(4,282 |
) |
|
|
582 |
|
|
|
(1,850 |
) |
|
|
(0.04 |
) |
| Separation
costs |
|
|
9,246 |
|
|
|
9,246 |
|
|
|
(2,228 |
) |
|
|
7,018 |
|
|
|
0.14 |
|
|
Non-GAAP |
|
$ |
(1,525 |
) |
|
$ |
29,125 |
|
|
$ |
5,904 |
|
|
$ |
21,784 |
|
|
$ |
0.44 |
|
| |
|
Three Months Ended November 30, 2021 |
|
|
|
|
OperatingIncome |
|
|
Earnings BeforeIncome Taxes |
|
|
Income TaxExpense |
|
|
Net EarningsAttributable toControlling Interest(1) |
|
|
Earnings perDiluted Share |
|
|
GAAP |
|
$ |
90,465 |
|
|
$ |
144,411 |
|
|
$ |
31,226 |
|
|
$ |
110,301 |
|
|
$ |
2.15 |
|
|
Restructuring and other income, net |
|
|
(2,004 |
) |
|
|
(2,004 |
) |
|
|
410 |
|
|
|
(1,513 |
) |
|
|
(0.03 |
) |
|
Non-GAAP |
|
$ |
88,461 |
|
|
$ |
142,407 |
|
|
$ |
30,816 |
|
|
$ |
108,788 |
|
|
$ |
2.12 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change |
|
$ |
(89,986 |
) |
|
$ |
(113,282 |
) |
|
$ |
(24,912 |
) |
|
$ |
(87,004 |
) |
|
$ |
(1.68 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes the
impact of the noncontrolling interest. |
|
| |
|
The following provides a reconciliation to
adjusted operating income, adjusted net earnings attributable to
controlling interest and adjusted earnings per diluted share
attributable to controlling interest from the most comparable GAAP
measures for the six months ended November 30, 2022 and 2021.
| |
|
Six Months Ended November 30, 2022 |
|
|
|
|
OperatingIncome |
|
|
Earnings BeforeIncome Taxes |
|
|
Income TaxExpense (Benefit) |
|
|
Net EarningsAttributable toControlling Interest(1) |
|
|
Earnings perDiluted Share |
|
|
GAAP |
|
$ |
59,700 |
|
|
$ |
108,378 |
|
|
$ |
23,629 |
|
|
$ |
80,300 |
|
|
$ |
1.63 |
|
| Incremental
expense related to Level5 earnout |
|
|
1,050 |
|
|
|
1,050 |
|
|
|
(253 |
) |
|
|
797 |
|
|
|
0.02 |
|
| Impairment
of long-lived assets |
|
|
312 |
|
|
|
312 |
|
|
|
(47 |
) |
|
|
149 |
|
|
|
- |
|
|
Restructuring and other income, net |
|
|
(5,382 |
) |
|
|
(5,382 |
) |
|
|
851 |
|
|
|
(2,681 |
) |
|
|
(0.05 |
) |
| Separation
costs |
|
|
9,246 |
|
|
|
9,246 |
|
|
|
(2,228 |
) |
|
|
7,018 |
|
|
|
0.14 |
|
| Pension
settlement charge |
|
|
- |
|
|
|
4,774 |
|
|
|
(1,150 |
) |
|
|
3,624 |
|
|
|
0.07 |
|
| Loss on sale
of investment in ArtiFlex |
|
|
- |
|
|
|
15,759 |
|
|
|
(3,798 |
) |
|
|
11,961 |
|
|
|
0.24 |
|
|
Non-GAAP |
|
$ |
64,926 |
|
|
$ |
134,137 |
|
|
$ |
30,254 |
|
|
$ |
101,168 |
|
|
$ |
2.05 |
|
| |
|
Six Months Ended November 30, 2021 |
|
|
|
|
OperatingIncome |
|
|
Earnings BeforeIncome Taxes |
|
|
Income TaxExpense |
|
|
Net EarningsAttributable toControlling Interest(1) |
|
|
Earnings perDiluted Share |
|
|
GAAP |
|
$ |
226,262 |
|
|
$ |
326,036 |
|
|
$ |
71,376 |
|
|
$ |
242,792 |
|
|
$ |
4.71 |
|
|
Restructuring and other income, net |
|
|
(14,278 |
) |
|
|
(14,278 |
) |
|
|
1,890 |
|
|
|
(6,361 |
) |
|
|
(0.12 |
) |
|
Non-GAAP |
|
$ |
211,984 |
|
|
$ |
311,758 |
|
|
$ |
69,486 |
|
|
$ |
236,431 |
|
|
$ |
4.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Change |
|
$ |
(147,058 |
) |
|
$ |
(177,621 |
) |
|
$ |
(39,232 |
) |
|
$ |
(135,263 |
) |
|
$ |
(2.54 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes the
impact of the noncontrolling interest. |
|
| |
|
To further assist in the analysis of segment
results for the periods presented, the following volume and sales
information for the three and six months ended November 30, 2022
and 2022 has been provided along with a reconciliation of adjusted
EBIT and adjusted EBITDA to the most comparable GAAP measure, which
is operating income for purposes of measuring segment profit:
| |
Three Months Ended November 30, 2022 |
|
| |
SteelProcessing |
|
|
ConsumerProducts |
|
|
BuildingProducts |
|
|
SustainableEnergySolutions |
|
|
Other |
|
|
Consolidated |
|
| Volume
(tons/units) |
|
925,434 |
|
|
|
16,583,326 |
|
|
|
2,367,770 |
|
|
|
155,687 |
|
|
n/a |
|
|
n/a |
|
| Sales |
$ |
841,947 |
|
|
$ |
153,795 |
|
|
$ |
141,671 |
|
|
$ |
38,128 |
|
|
n/a |
|
|
$ |
1,175,541 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
(14,286 |
) |
|
$ |
12,995 |
|
|
$ |
6,041 |
|
|
$ |
1,001 |
|
|
$ |
(12,765 |
) |
|
$ |
(7,014 |
) |
| Incremental
expenses related to Level5 earnout |
|
- |
|
|
|
525 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
525 |
|
|
Restructuring and other income, net |
|
(4,282 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,282 |
) |
| Separation
costs(2) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,246 |
|
|
|
9,246 |
|
|
Adjusted operating income (loss) |
|
(18,568 |
) |
|
|
13,520 |
|
|
|
6,041 |
|
|
|
1,001 |
|
|
|
(3,519 |
) |
|
|
(1,525 |
) |
|
Miscellaneous income (expense), net |
|
850 |
|
|
|
(47 |
) |
|
|
76 |
|
|
|
142 |
|
|
|
384 |
|
|
|
1,405 |
|
| Equity in
net income of unconsolidated affiliates |
|
1,906 |
|
|
|
- |
|
|
|
35,107 |
|
|
|
- |
|
|
|
(156 |
) |
|
|
36,857 |
|
| Less: Net
earnings attributable to noncontrolling interests(1) |
|
1,437 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,437 |
|
|
Adjusted EBIT |
|
(17,249 |
) |
|
|
13,473 |
|
|
|
41,224 |
|
|
|
1,143 |
|
|
|
(3,291 |
) |
|
|
35,300 |
|
| Depreciation
and amortization |
|
16,984 |
|
|
|
3,845 |
|
|
|
4,375 |
|
|
|
1,500 |
|
|
|
1,650 |
|
|
|
28,354 |
|
|
Adjusted EBITDA |
$ |
(265 |
) |
|
$ |
17,318 |
|
|
$ |
45,599 |
|
|
$ |
2,643 |
|
|
$ |
(1,641 |
) |
|
$ |
63,654 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) Excludes the
noncontrolling interest portion of the restructuring gains within
Steel Processing of $1,850. |
|
| (2) Separation
costs reflect direct and incremental costs incurred in connection
with the anticipated tax-free spin-off of the Company's Steel
Processing business, including audit, advisory, and legal
costs. |
|
| |
Three Months Ended November 30, 2021 |
|
| |
SteelProcessing |
|
|
ConsumerProducts |
|
|
BuildingProducts |
|
|
SustainableEnergySolutions |
|
|
Other |
|
|
Consolidated |
|
| Volume
(tons/units) |
|
1,067,589 |
|
|
|
18,698,589 |
|
|
|
2,565,025 |
|
|
|
155,001 |
|
|
n/a |
|
|
n/a |
|
| Sales |
$ |
937,842 |
|
|
$ |
140,793 |
|
|
$ |
121,125 |
|
|
$ |
33,101 |
|
|
n/a |
|
|
$ |
1,232,861 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
$ |
66,070 |
|
|
$ |
17,425 |
|
|
$ |
4,606 |
|
|
$ |
714 |
|
|
$ |
1,650 |
|
|
$ |
90,465 |
|
|
Restructuring and other income, net |
|
(182 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,822 |
) |
|
|
(2,004 |
) |
|
Adjusted operating income (loss) |
|
65,888 |
|
|
|
17,425 |
|
|
|
4,606 |
|
|
|
714 |
|
|
|
(172 |
) |
|
|
88,461 |
|
|
Miscellaneous income, net |
|
17 |
|
|
|
159 |
|
|
|
218 |
|
|
|
82 |
|
|
|
564 |
|
|
|
1,040 |
|
| Equity in
net income of unconsolidated affiliates |
|
8,823 |
|
|
|
- |
|
|
|
49,894 |
|
|
|
- |
|
|
|
1,501 |
|
|
|
60,218 |
|
| Less: Net
earnings attributable to noncontrolling interests(3) |
|
2,803 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,803 |
|
|
Adjusted EBIT |
|
71,925 |
|
|
|
17,584 |
|
|
|
54,718 |
|
|
|
796 |
|
|
|
1,893 |
|
|
|
146,916 |
|
| Depreciation
and amortization |
|
10,216 |
|
|
|
3,271 |
|
|
|
4,058 |
|
|
|
1,691 |
|
|
|
1,854 |
|
|
|
21,090 |
|
|
Adjusted EBITDA |
$ |
82,141 |
|
|
$ |
20,855 |
|
|
$ |
58,776 |
|
|
$ |
2,487 |
|
|
$ |
3,747 |
|
|
$ |
168,006 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (3) Excludes the
noncontrolling interest portion of the restructuring gains within
Steel Processing of $81. |
|
| |
Six Months Ended November 30, 2022 |
|
| |
SteelProcessing |
|
|
ConsumerProducts |
|
|
BuildingProducts |
|
|
SustainableEnergySolutions |
|
|
Other |
|
|
Consolidated |
|
| Volume
(tons/units) |
|
1,900,083 |
|
|
|
38,966,668 |
|
|
|
5,289,933 |
|
|
|
288,820 |
|
|
n/a |
|
|
n/a |
|
| Sales |
$ |
1,880,827 |
|
|
$ |
342,497 |
|
|
$ |
291,994 |
|
|
$ |
68,888 |
|
|
n/a |
|
|
$ |
2,584,206 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
19,560 |
|
|
$ |
33,438 |
|
|
$ |
14,687 |
|
|
$ |
(306 |
) |
|
$ |
(7,679 |
) |
|
$ |
59,700 |
|
| Incremental
expenses related to Level5 earnout |
|
- |
|
|
|
1,050 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,050 |
|
| Impairment
of long-lived assets |
|
312 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
312 |
|
|
Restructuring and other income, net |
|
(4,205 |
) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,177 |
) |
|
|
(5,382 |
) |
| Separation
costs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
9,246 |
|
|
|
9,246 |
|
|
Adjusted operating income (loss) |
|
15,667 |
|
|
|
34,488 |
|
|
|
14,687 |
|
|
|
(306 |
) |
|
|
390 |
|
|
|
64,926 |
|
|
Miscellaneous income (expense), net(4) |
|
1,035 |
|
|
|
(82 |
) |
|
|
299 |
|
|
|
56 |
|
|
|
(215 |
) |
|
|
1,093 |
|
| Equity in
net income of unconsolidated affiliates(5) |
|
3,676 |
|
|
|
- |
|
|
|
78,973 |
|
|
|
- |
|
|
|
1,679 |
|
|
|
84,328 |
|
| Less: Net
earnings attributable to noncontrolling interests(6) |
|
2,715 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,715 |
|
|
Adjusted EBIT |
|
17,663 |
|
|
|
34,406 |
|
|
|
93,959 |
|
|
|
(250 |
) |
|
|
1,854 |
|
|
|
147,632 |
|
| Depreciation
and amortization |
|
33,829 |
|
|
|
7,547 |
|
|
|
8,632 |
|
|
|
2,970 |
|
|
|
3,377 |
|
|
|
56,355 |
|
|
Adjusted EBITDA |
$ |
51,492 |
|
|
$ |
41,953 |
|
|
$ |
102,591 |
|
|
$ |
2,720 |
|
|
$ |
5,231 |
|
|
$ |
203,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (4) Excludes
within Other a non-cash settlement charge of $4,774 to accelerate a
portion of deferred pension cost resulting from a pension lift-out
transaction to transfer a portion of the total projected benefit
obligation of The Gerstenslager Company Bargaining Unit Employees'
Pension Plan to a third-party insurance company. |
|
| (5) Excludes
within Other a loss of $15,759 within Other related to the sale of
the Company's 50% noncontrolling equity investment in ArtiFlex
Manufacturing, LLC effective August 3, 2022. |
|
| (6) Excludes the
noncontrolling interest portion of impairment of long-lived assets
and restructuring of $1,734 within Steel Processing. |
|
| |
Six Months Ended November 30, 2021 |
|
| |
SteelProcessing |
|
|
ConsumerProducts |
|
|
BuildingProducts |
|
|
SustainableEnergySolutions |
|
|
Other |
|
|
Consolidated |
|
| Volume
(tons/units) |
|
2,129,877 |
|
|
|
40,086,729 |
|
|
|
5,450,736 |
|
|
|
285,677 |
|
|
n/a |
|
|
n/a |
|
| Sales |
$ |
1,760,652 |
|
|
$ |
288,576 |
|
|
$ |
235,868 |
|
|
$ |
58,583 |
|
|
n/a |
|
|
$ |
2,343,679 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) |
$ |
179,552 |
|
|
$ |
37,931 |
|
|
$ |
10,440 |
|
|
$ |
(1,639 |
) |
|
$ |
(22 |
) |
|
$ |
226,262 |
|
|
Restructuring and other income, net |
|
(12,313 |
) |
|
|
- |
|
|
|
- |
|
|
|
(143 |
) |
|
|
(1,822 |
) |
|
|
(14,278 |
) |
|
Adjusted operating income (loss) |
|
167,239 |
|
|
|
37,931 |
|
|
|
10,440 |
|
|
|
(1,782 |
) |
|
|
(1,844 |
) |
|
|
211,984 |
|
|
Miscellaneous income, net |
|
47 |
|
|
|
209 |
|
|
|
144 |
|
|
|
22 |
|
|
|
1,248 |
|
|
|
1,670 |
|
| Equity in
net income of unconsolidated affiliates |
|
18,172 |
|
|
|
- |
|
|
|
92,887 |
|
|
|
- |
|
|
|
2,075 |
|
|
|
113,134 |
|
| Less: Net
earnings attributable to noncontrolling interests(7) |
|
5,841 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
5,841 |
|
|
Adjusted EBIT |
|
179,617 |
|
|
|
38,140 |
|
|
|
103,471 |
|
|
|
(1,760 |
) |
|
|
1,479 |
|
|
|
320,947 |
|
| Depreciation
and amortization |
|
21,765 |
|
|
$ |
6,564 |
|
|
$ |
7,827 |
|
|
$ |
3,263 |
|
|
$ |
3,735 |
|
|
$ |
43,154 |
|
|
Adjusted EBITDA |
$ |
201,382 |
|
|
$ |
44,704 |
|
|
$ |
111,298 |
|
|
$ |
1,503 |
|
|
$ |
5,214 |
|
|
$ |
364,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (7) Excludes the
noncontrolling interest portion of restructuring gains within Steel
Processing of $6,027. |
|
| |
|
The following tables outlines our equity income
(loss) by unconsolidated affiliate for the periods presented:
| |
Three Months Ended |
|
|
Six Months Ended |
|
| |
November 30, |
|
|
November 30, |
|
| |
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
|
WAVE |
$ |
18,982 |
|
|
$ |
22,415 |
|
|
$ |
42,775 |
|
|
$ |
48,086 |
|
|
ClarkDietrich |
|
16,125 |
|
|
|
27,479 |
|
|
|
36,198 |
|
|
|
44,801 |
|
| Serviacero
Worthington |
|
1,906 |
|
|
|
8,823 |
|
|
|
3,676 |
|
|
|
18,172 |
|
|
ArtiFlex(1) |
|
- |
|
|
|
1,815 |
|
|
|
(13,400 |
) |
|
|
3,023 |
|
|
Workhorse |
|
(156 |
) |
|
|
(314 |
) |
|
|
(680 |
) |
|
|
(948 |
) |
|
Total equity income |
$ |
36,857 |
|
|
$ |
60,218 |
|
|
$ |
68,569 |
|
|
$ |
113,134 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) On August 3,
2022, the Company sold its 50% interest in ArtiFlex. |
|
| |
|
Worthington Enterprises (NYSE:WOR)
Historical Stock Chart
Von Nov 2023 bis Dez 2023
Worthington Enterprises (NYSE:WOR)
Historical Stock Chart
Von Dez 2022 bis Dez 2023
