Worthington Reports Fourth Quarter Fiscal 2021 Results
Worthington Industries, Inc. (NYSE: WOR) reported significant financial gains for Q4 2021, with net sales of $978.3 million and net earnings of $113.6 million ($2.15 per diluted share). This marks a 60% increase in net sales compared to Q4 2020. Total annual net earnings reached $723.8 million, a significant rise from $78.8 million the previous year. The company benefitted from improved demand and rising steel prices, despite some restructuring charges. Looking forward, the company is optimistic about demand and recent acquisitions driving growth.
- Net sales increased by 60% year-over-year to $978.3 million.
- Net earnings for Q4 2021 were $113.6 million, up from $16.2 million in Q4 2020.
- Annual net earnings rose to $723.8 million from $78.8 million, indicating strong overall performance.
- Operating income for Q4 increased to $110.5 million, a significant rise from $6.3 million in the prior year.
- Successful acquisitions and divestitures expected to enhance future performance.
- Higher SG&A expenses increased by $32.1 million, impacting overall profitability.
- Impairment and restructuring charges of $10.9 million affected Q4 earnings.
COLUMBUS, Ohio, June 23, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of
(U.S. dollars in millions, except per share amounts)
| 4Q 2021 | 4Q 2020 | |||||||||||||||
| After-Tax | Per Share | After-Tax | Per Share | |||||||||||||
| Net earnings | $ | 113.6 | $ | 2.15 | $ | 16.2 | $ | 0.29 | ||||||||
| Impairment and restructuring charges | 10.9 | 0.20 | 11.0 | 0.20 | ||||||||||||
| Incremental expenses related to Nikola gains | (1.1 | ) | (0.02 | ) | - | - | ||||||||||
| Adjusted net earnings | $ | 123.4 | $ | 2.33 | $ | 27.2 | $ | 0.49 | ||||||||
Financial highlights for the current and comparative periods are as follows:
(U.S. dollars in millions, except per share amounts)
| 4Q 2021 | 4Q 2020 | 12M 2021 | 12M 2020 | ||||||||||||
| Net sales | $ | 978.3 | $ | 611.6 | $ | 3,171.4 | $ | 3,059.1 | |||||||
| Operating income | 110.5 | 6.3 | 167.5 | 22.5 | |||||||||||
| Equity income | 42.4 | 17.3 | 123.3 | 114.8 | |||||||||||
| Net earnings | 113.6 | 16.2 | 723.8 | 78.8 | |||||||||||
| Earnings per diluted share | $ | 2.15 | $ | 0.29 | $ | 13.42 | $ | 1.41 | |||||||
“We had an exceptional fiscal 2021 generating record fourth quarter and annual earnings per share,” said Andy Rose, President and CEO. “While we benefitted from rising steel prices, we also saw robust demand across most of our businesses and joint ventures. I am very pleased with the way our teams executed this past year coming out of the pandemic, and I want to thank all of our employees for their hard work and continuing commitment to making the Company better and growing earnings for our shareholders.”
Consolidated Quarterly Results
Net sales for the fourth quarter of fiscal 2021 were
Gross margin increased
Operating income for the current quarter was
Interest expense was
Equity income from unconsolidated joint ventures increased
Income tax expense was
Balance Sheet
At quarter-end, total debt of
Quarterly Segment Results
Steel Processing’s net sales totaled
Pressure Cylinders’ net sales totaled
Recent Developments
- On March 12, 2021, the Company sold its Structural Composites Industries, LLC business located in Pomona, California to Luxfer Holdings PLC. The Company received net proceeds of
$19.1 million , resulting in a pre-tax loss of$7.2 million within restructuring and other expense. - On May 31, 2021, the Company sold its LPG fuel storage business, located in Poland, to Westport Fuel Systems, Inc. The Company received total consideration of approximately
$6.0 million , resulting in a pre-tax loss of$11.0 million within restructuring and other expense. - During the fourth quarter of fiscal 2021, the Company repurchased a total of 700,000 of its common shares for
$46.8 million , at an average purchase price of$66.86 . - On June 8, 2021, the Company acquired certain assets of Shiloh Industries U.S. BlankLight® business, a provider of laser welded solutions, for approximately
$105.0 million , subject to closing adjustments. The acquisition includes three facilities that will expand the capacity and capabilities of TWB’s laser welded products business and an additional blanking facility that will support the Company’s core steel processing operations. - On June 9, 2021, the Company’s consolidated joint venture, WSP, sold the remaining assets of its Canton, Mich., facility for approximately
$20.0 million . The Company expects to record a gain of approximately$12.0 million in the first quarter of fiscal 2022 related to the divestiture. WSP continues to operate locations in Jackson and Taylor, Mich. - On June 10, 2021, the Company announced that its Pressure Cylinders segment was being divided into three new reporting segments: Consumer Products, Building Products and Sustainable Energy Solutions, effective at the start of fiscal year 2022. The three new reporting segments are in addition to the Company’s Steel Processing segment.
- On June 23, 2021, Worthington’s Board of Directors declared a quarterly dividend of
$0.28 per share payable on September 29, 2021 to shareholders of record on September 15, 2021.
Outlook
“As we enter our new fiscal year, demand levels and backlogs are quite good across our key end markets. Going forward, we expect results will be positively impacted by our recent acquisitions and actions we have taken to divest underperforming assets,” said Rose. “Our businesses have solid growth strategies, underpinned by innovation, transformation and M&A, and our new reporting segments will allow our teams to reshape these businesses around larger, more attractive end markets.”
Conference Call
Worthington will review fiscal 2021 fourth quarter results during its quarterly conference call on June 24, 2021, at 9:30 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 delivering innovative solutions to customers that span many industries including transportation, construction, industrial, agriculture, retail and energy. Worthington is North America’s premier value-added steel processor and producer of laser welded products; and a leading global supplier of pressure cylinders and accessories for applications such as fuel storage, water systems, outdoor living, tools and celebrations. The Company’s brands, primarily sold in retail stores, include Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, Well-X-Trol®, General®, Garden-Weasel®, Pactool International® and Hawkeye™. Worthington’s WAVE joint venture with Armstrong is the North American leader in innovative ceiling solutions.
Headquartered in Columbus, Ohio, Worthington operates 53 facilities in 15 states and seven countries, sells into over 90 countries and employs approximately 8,000 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 practicing a shared commitment to transformation, Worthington makes better solutions possible for customers, employees, shareholders and communities.
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; 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. 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, 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 and effectiveness 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 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 ; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company’s products; fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities and other items required by operations; 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, interruption in utility services, civil unrest, international conflicts, 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, 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; 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 other actions of the environmental protection agency or similar regulators which increase costs or limit the ability to use or sell certain products; 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 Plan Act of 2021, 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; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company’s filings with the United States Securities and Exchange Commission, including those described in “Part I – Item 1A. – Risk Factors” of the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2020.
WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||
| Net sales | $ | 978,319 | $ | 611,627 | $ | 3,171,429 | $ | 3,059,119 | |||||||
| Cost of goods sold | 752,171 | 521,737 | 2,532,351 | 2,615,782 | |||||||||||
| Gross margin | 226,148 | 89,890 | 639,078 | 443,337 | |||||||||||
| Selling, general and administrative expense | 99,925 | 67,816 | 351,145 | 328,110 | |||||||||||
| Impairment of goodwill and long-lived assets | - | 7,462 | 13,739 | 82,690 | |||||||||||
| Restructuring and other expense, net | 18,441 | 8,267 | 56,097 | 10,048 | |||||||||||
| Incremental expenses related to Nikola gains | (2,676 | ) | - | 50,624 | - | ||||||||||
| Operating income | 110,458 | 6,345 | 167,473 | 22,489 | |||||||||||
| Other income (expense): | |||||||||||||||
| Miscellaneous income, net | 797 | 783 | 2,163 | 9,099 | |||||||||||
| Interest expense | (7,650 | ) | (7,459 | ) | (30,346 | ) | (31,616 | ) | |||||||
| Equity in net income of unconsolidated affiliates | 42,386 | 17,256 | 123,325 | 114,848 | |||||||||||
| Gains on investment in Nikola | - | - | 655,102 | - | |||||||||||
| Loss on extinguishment of debt | - | - | - | (4,034 | ) | ||||||||||
| Earnings before income taxes | 145,991 | 16,925 | 917,717 | 110,786 | |||||||||||
| Income tax expense | 27,449 | 5,836 | 176,267 | 26,342 | |||||||||||
| Net earnings | 118,542 | 11,089 | 741,450 | 84,444 | |||||||||||
| Net earnings (loss) attributable to noncontrolling interests | 4,987 | (5,086 | ) | 17,655 | 5,648 | ||||||||||
| Net earnings attributable to controlling interest | $ | 113,555 | $ | 16,175 | $ | 723,795 | $ | 78,796 | |||||||
| Basic | |||||||||||||||
| Average common shares outstanding | 51,587 | 54,604 | 52,701 | 54,958 | |||||||||||
| Earnings per share attributable to controlling interest | $ | 2.20 | $ | 0.30 | $ | 13.73 | $ | 1.43 | |||||||
| Diluted | |||||||||||||||
| Average common shares outstanding | 52,862 | 55,206 | 53,917 | 55,983 | |||||||||||
| Earnings per share attributable to controlling interest | $ | 2.15 | $ | 0.29 | $ | 13.42 | $ | 1.41 | |||||||
| Common shares outstanding at end of period | 51,330 | 54,616 | 51,330 | 54,616 | |||||||||||
| Cash dividends declared per share | $ | 0.28 | $ | 0.24 | $ | 1.03 | $ | 0.96 | |||||||
WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
| May 31, | May 31, | ||||||
| 2021 | 2020 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 640,311 | $ | 147,198 | |||
| Receivables, less allowances of | |||||||
| and May 31, 2020, respectively | 639,964 | 341,038 | |||||
| Inventories: | |||||||
| Raw materials | 266,208 | 234,629 | |||||
| Work in process | 183,413 | 76,497 | |||||
| Finished products | 115,133 | 93,975 | |||||
| Total inventories | 564,754 | 405,101 | |||||
| Income taxes receivable | 1,958 | 8,376 | |||||
| Assets held for sale | 51,956 | 12,928 | |||||
| Prepaid expenses and other current assets | 69,049 | 68,538 | |||||
| Total current assets | 1,967,992 | 983,179 | |||||
| Investments in unconsolidated affiliates | 233,126 | 203,329 | |||||
| Operating lease assets | 35,101 | 31,557 | |||||
| Goodwill | 351,056 | 321,434 | |||||
| Other intangible assets, net of accumulated amortization of | |||||||
| 240,387 | 184,416 | ||||||
| Other assets | 30,566 | 34,956 | |||||
| Property, plant and equipment: | |||||||
| Land | 21,744 | 24,197 | |||||
| Buildings and improvements | 271,196 | 302,796 | |||||
| Machinery and equipment | 1,046,065 | 1,055,139 | |||||
| Construction in progress | 53,903 | 52,231 | |||||
| Total property, plant and equipment | 1,392,908 | 1,434,363 | |||||
| Less: accumulated depreciation | 877,891 | 861,719 | |||||
| Total property, plant and equipment, net | 515,017 | 572,644 | |||||
| Total assets | $ | 3,373,245 | $ | 2,331,515 | |||
| Liabilities and equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 567,392 | $ | 247,017 | |||
| Accrued compensation, contributions to employee benefit plans and | |||||||
| related taxes | 137,698 | 64,650 | |||||
| Dividends payable | 16,536 | 14,648 | |||||
| Other accrued items | 52,250 | 49,974 | |||||
| Current operating lease liabilities | 9,947 | 10,851 | |||||
| Income taxes payable | 3,620 | 949 | |||||
| Current maturities of long-term debt | 458 | 149 | |||||
| Total current liabilities | 787,901 | 388,238 | |||||
| Other liabilities | 82,824 | 75,786 | |||||
| Distributions in excess of investment in unconsolidated affiliate | 99,669 | 103,837 | |||||
| Long-term debt | 710,031 | 699,516 | |||||
| Noncurrent operating lease liabilities | 27,374 | 25,763 | |||||
| Deferred income taxes, net | 113,751 | 71,942 | |||||
| Total liabilities | 1,821,550 | 1,365,082 | |||||
| Shareholders' equity - controlling interest | 1,398,193 | 820,821 | |||||
| Noncontrolling interests | 153,502 | 145,612 | |||||
| Total equity | 1,551,695 | 966,433 | |||||
| Total liabilities and equity | $ | 3,373,245 | $ | 2,331,515 | |||
WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||
| Operating activities: | |||||||||||||||
| Net earnings | $ | 118,542 | $ | 11,089 | $ | 741,450 | $ | 84,444 | |||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||||||
| Depreciation and amortization | 21,990 | 23,125 | 87,654 | 92,678 | |||||||||||
| Impairment of goodwill and long-lived assets | - | 7,462 | 13,739 | 82,690 | |||||||||||
| Provision for (benefit from) deferred income taxes | (4,304 | ) | 352 | 4,822 | (1,309 | ) | |||||||||
| Bad debt (income) expense | (95 | ) | (4 | ) | (255 | ) | 580 | ||||||||
| Equity in net income of unconsolidated affiliates, net of distributions | (16,881 | ) | 27,377 | (32,318 | ) | 8,106 | |||||||||
| Net (gain) loss on sale of assets | 18,293 | 180 | 53,607 | (5,057 | ) | ||||||||||
| Stock-based compensation | 4,692 | 1,883 | 19,129 | 11,883 | |||||||||||
| Gains on investment in Nikola | - | - | (655,102 | ) | - | ||||||||||
| Charitable contribution of Nikola shares | - | - | 20,653 | - | |||||||||||
| Loss on extinguishment of debt | - | - | - | 4,034 | |||||||||||
| Changes in assets and liabilities, net of impact of acquisitions: | |||||||||||||||
| Receivables | (112,535 | ) | 131,708 | (223,254 | ) | 147,225 | |||||||||
| Inventories | (163,149 | ) | (28,781 | ) | (169,740 | ) | 62,126 | ||||||||
| Accounts payable | 157,593 | (114,337 | ) | 315,222 | (142,684 | ) | |||||||||
| Accrued compensation and employee benefits | 27,134 | 10,862 | 75,725 | (11,878 | ) | ||||||||||
| Income taxes payable | (33,896 | ) | 525 | 2,671 | (215 | ) | |||||||||
| Other operating items, net | 22,923 | 9,435 | 20,376 | 4,103 | |||||||||||
| Net cash provided by operating activities | 40,307 | 80,876 | 274,379 | 336,726 | |||||||||||
| Investing activities: | |||||||||||||||
| Investment in property, plant and equipment | (16,857 | ) | (23,729 | ) | (82,178 | ) | (95,503 | ) | |||||||
| Proceeds from sale of Nikola shares | - | - | 634,449 | - | |||||||||||
| Acquisitions, net of cash acquired | 203 | (965 | ) | (129,615 | ) | (30,748 | ) | ||||||||
| Proceeds from sale of assets | 25,259 | 718 | 45,854 | 10,036 | |||||||||||
| Net cash provided (used) by investing activities | 8,605 | (23,976 | ) | 468,510 | (116,215 | ) | |||||||||
| Financing activities: | |||||||||||||||
| Proceeds from long-term debt, net of issuance costs | - | - | - | 101,464 | |||||||||||
| Principal payments on long-term obligations and debt redemption costs | (330 | ) | (102 | ) | (622 | ) | (154,913 | ) | |||||||
| Proceeds from issuance of common shares, net of tax withholdings | 4,872 | 82 | 6,581 | (6,513 | ) | ||||||||||
| Payments to noncontrolling interests | (2,880 | ) | - | (10,690 | ) | (1,453 | ) | ||||||||
| Repurchase of common shares | (46,804 | ) | - | (192,054 | ) | (50,972 | ) | ||||||||
| Dividends paid | (12,964 | ) | (13,112 | ) | (52,991 | ) | (53,289 | ) | |||||||
| Net cash used by financing activities | (58,106 | ) | (13,132 | ) | (249,776 | ) | (165,676 | ) | |||||||
| Increase (decrease) in cash and cash equivalents | (9,194 | ) | 43,768 | 493,113 | 54,835 | ||||||||||
| Cash and cash equivalents at beginning of period | 649,505 | 103,430 | 147,198 | 92,363 | |||||||||||
| Cash and cash equivalents at end of period | $ | 640,311 | $ | 147,198 | $ | 640,311 | $ | 147,198 | |||||||
WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands, except volume)
| This supplemental information is provided to assist in the analysis of the results of operations. | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||
| Volume: | |||||||||||||||
| Steel Processing (tons) | 1,099,477 | 795,161 | 4,066,773 | 3,830,675 | |||||||||||
| Pressure Cylinders (units) | 25,161,866 | 23,346,466 | 86,769,147 | 82,519,829 | |||||||||||
| Net sales: | |||||||||||||||
| Steel Processing | $ | 655,177 | $ | 328,222 | $ | 2,059,397 | $ | 1,859,670 | |||||||
| Pressure Cylinders | 323,142 | 282,898 | 1,110,973 | 1,148,424 | |||||||||||
| Other | - | 507 | 1,059 | 51,025 | |||||||||||
| Total net sales | $ | 978,319 | $ | 611,627 | $ | 3,171,429 | $ | 3,059,119 | |||||||
| Material cost: | |||||||||||||||
| Steel Processing | $ | 427,048 | $ | 230,076 | $ | 1,360,089 | $ | 1,339,898 | |||||||
| Pressure Cylinders | 138,130 | 123,639 | 465,917 | 496,906 | |||||||||||
| Selling, general and administrative expense: | |||||||||||||||
| Steel Processing | $ | 48,682 | $ | 27,664 | $ | 165,382 | $ | 136,664 | |||||||
| Pressure Cylinders | 52,095 | 40,090 | 186,398 | 180,721 | |||||||||||
| Operating income (loss): | |||||||||||||||
| Steel Processing | $ | 94,333 | $ | (1,797 | ) | $ | 208,648 | $ | 40,564 | ||||||
| Pressure Cylinders | 12,970 | 13,498 | 9,276 | 38,903 | |||||||||||
| Other | (529 | ) | (6,133 | ) | (1,499 | ) | (54,968 | ) | |||||||
| Segment operating income | 106,774 | 5,568 | 216,425 | 24,499 | |||||||||||
| Unallocated corporate and other | 1,008 | 777 | 1,672 | (2,010 | ) | ||||||||||
| Incremental expenses related to Nikola gains | 2,676 | - | (50,624 | ) | - | ||||||||||
| Total operating income | $ | 110,458 | $ | 6,345 | $ | 167,473 | $ | 22,489 | |||||||
| Equity income (loss) by unconsolidated affiliate: | |||||||||||||||
| WAVE | $ | 24,460 | $ | 15,334 | $ | 78,869 | $ | 101,063 | |||||||
| ClarkDietrich | 8,365 | 3,309 | 24,578 | 17,225 | |||||||||||
| Serviacero Worthington | 8,571 | (1,029 | ) | 15,965 | 1,325 | ||||||||||
| ArtiFlex | 1,596 | (297 | ) | 4,475 | 2,731 | ||||||||||
| Other | (606 | ) | (61 | ) | (562 | ) | (7,496 | ) | |||||||
| Total equity income | $ | 42,386 | $ | 17,256 | $ | 123,325 | $ | 114,848 | |||||||
WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands, except volume)
| The following provides detail of Pressure Cylinders volume and net sales by principal class of products. | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||
| Volume (units): | |||||||||||||||
| Consumer products | 20,646,812 | 18,926,216 | 71,399,889 | 68,596,103 | |||||||||||
| Industrial products | 4,515,054 | 4,419,990 | 15,368,823 | 13,921,973 | |||||||||||
| Oil & gas equipment | - | 260 | 435 | 1,753 | |||||||||||
| Total Pressure Cylinders | 25,161,866 | 23,346,466 | 86,769,147 | 82,519,829 | |||||||||||
| Net sales: | |||||||||||||||
| Consumer products | $ | 162,723 | $ | 125,188 | $ | 537,930 | $ | 485,990 | |||||||
| Industrial products | 160,419 | 138,549 | 552,093 | 550,543 | |||||||||||
| Oil & gas equipment | - | 19,161 | 20,950 | 111,891 | |||||||||||
| Total Pressure Cylinders | $ | 323,142 | $ | 282,898 | $ | 1,110,973 | $ | 1,148,424 | |||||||
| The following provides detail of impairment of goodwill and long-lived assets and restructuring and other expense, net included in operating income by segment. | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| May 31, 2021 | May 31, 2020 | May 31, 2021 | May 31, 2020 | ||||||||||||
| Impairment of goodwill and long-lived assets: | |||||||||||||||
| Steel Processing | $ | - | $ | 565 | $ | - | $ | 1,839 | |||||||
| Pressure Cylinders | - | 3,800 | 13,739 | 37,153 | |||||||||||
| Other | - | 3,097 | - | 43,698 | |||||||||||
| Total impairment of goodwill and long-lived assets | $ | - | $ | 7,462 | $ | 13,739 | $ | 82,690 | |||||||
| Restructuring and other expense, net: | |||||||||||||||
| Steel Processing | $ | 79 | $ | 2,799 | $ | 1,883 | $ | 3,501 | |||||||
| Pressure Cylinders | 18,149 | 4,535 | 54,155 | 5,282 | |||||||||||
| Other | 213 | 933 | 59 | 1,265 | |||||||||||
| Total restructuring and other expense, net | $ | 18,441 | $ | 8,267 | $ | 56,097 | $ | 10,048 | |||||||
WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except 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 adjusted earnings per diluted share and adjusted operating income to assist in the understanding of its results of operations. These represent non-GAAP financial measures and are used by management as measures of operating performance. In general, these measures exclude impairment and restructuring charges, but may also exclude other items that management does not believe reflect the Company’s core operations.
The following provides a reconciliation of adjusted operating income and adjusted earnings per diluted share to the most comparable GAAP measures for the periods presented.
| Three Months Ended May 31, 2021 | |||||||||||||||||||
| Operating Income | Earnings Before Income Taxes | Income Tax Expense (Benefit) | Net Earnings Attributable to Controlling Interest1 | Earnings per Diluted Share | |||||||||||||||
| GAAP | $ | 110,458 | $ | 145,991 | $ | 27,449 | $ | 113,555 | $ | 2.15 | |||||||||
| Restructuring and other expense, net | 18,441 | 18,441 | (7,413 | ) | 10,998 | 0.20 | |||||||||||||
| Incremental expenses related to Nikola gains | (2,676 | ) | (2,676 | ) | 1,544 | (1,132 | ) | (0.02 | ) | ||||||||||
| Non-GAAP | $ | 126,223 | $ | 161,756 | $ | 33,318 | $ | 123,421 | $ | 2.33 | |||||||||
| Three Months Ended May 31, 2020 | |||||||||||||||||||
| Operating Income | Earnings Before Income Taxes | Income Tax Expense (Benefit) | Net Earnings Attributable to Controlling Interest1 | Earnings per Diluted Share | |||||||||||||||
| GAAP | $ | 6,345 | $ | 16,925 | $ | 5,836 | $ | 16,175 | $ | 0.29 | |||||||||
| Impairment of long-lived assets | 7,462 | 7,462 | (1,865 | ) | 5,406 | 0.10 | |||||||||||||
| Restructuring and other expense, net | 8,267 | 8,267 | (2,134 | ) | 5,615 | 0.10 | |||||||||||||
| Non-GAAP | $ | 22,074 | $ | 32,654 | $ | 9,835 | $ | 27,196 | $ | 0.49 | |||||||||
| Change | $ | 104,149 | $ | 129,102 | $ | 23,483 | $ | 96,225 | $ | 1.84 | |||||||||
| 1 Excludes the impact of the noncontrolling interest. | |||||||||||||||||||
The following provides a reconciliation of adjusted operating income to the most comparable GAAP measure for the Company’s Pressure Cylinders segment for the periods presented.
| Three Months Ended | |||||||
| May 31, 2021 | May 31, 2020 | ||||||
| Operating income | $ | 12,970 | $ | 13,498 | |||
| Impairment of long-lived assets | - | 3,800 | |||||
| Restructuring and other expense, net | 18,149 | 4,535 | |||||
| Adjusted operating income | $ | 31,119 | $ | 21,833 | |||
Contacts:
SONYA L. HIGGINBOTHAM
VP, CORPORATE COMMUNICATIONS
AND BRAND MANAGEMENT
614.438.7391 | sonya.higginbotham@worthingtonindustries.com
MARCUS A. ROGIER
TREASURER AND INVESTOR RELATIONS OFFICER
614.840.4663 | marcus.rogier@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio 43085
WorthingtonIndustries.com
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