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Worthington Reports Fourth Quarter Fiscal 2021 Results

06/23/2021

COLUMBUS, Ohio, June 23, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $978.3 million and net earnings of $113.6 million, or $2.15 per diluted share, for its fiscal 2021 fourth quarter ended May 31, 2021. In the fourth quarter of fiscal 2020, the Company reported net sales of $611.6 million and net earnings of $16.2 million, or $0.29 per diluted share. Results in both the current and prior year quarters were impacted by certain unique items, as summarized in the table below.

(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 $978.3 million compared to $611.6 million, an increase of 60% over the comparable quarter in the prior year. The increase was driven by overall volume improvements in both Steel Processing and Pressure Cylinders and higher average direct selling prices in Steel Processing.
        
Gross margin increased $136.3 million over the prior year quarter to $226.1 million, primarily due to improved direct spreads in Steel Processing and the impact of higher overall volumes.

Operating income for the current quarter was $110.5 million, an increase of $104.1 million over the prior year quarter. The impact of higher gross margin was partially offset by higher SG&A expense, which was up $32.1 million, mostly due to higher profit sharing and bonus expense resulting from the significant increase in earnings.

Interest expense was $7.7 million in the current quarter, compared to $7.5 million in the prior year quarter. The increase was due primarily to higher average debt levels.

Equity income from unconsolidated joint ventures increased $25.1 million over the prior year quarter to $42.4 million on higher contributions from all joint ventures. The Company received cash distributions of $25.5 million from unconsolidated joint ventures during the quarter.

Income tax expense was $27.4 million in the current quarter compared to $5.8 million in the prior year quarter. The increase was driven by higher pre-tax earnings, partially offset by a discrete tax benefit realized in connection with the sale of the Company’s liquified petroleum gas (LPG) fuel storage business in Poland.   Tax expense in the current quarter reflects an annual effective rate of 19.6% compared to 25.1% for the prior year.

Balance Sheet

At quarter-end, total debt of $710.5 million was relatively consistent with debt at February 28, 2021, and the Company had $640.3 million of cash.

Quarterly Segment Results

Steel Processing’s net sales totaled $655.2 million, up 100%, or $327.0 million, over the comparable prior year quarter when COVID-19 related shutdowns significantly reduced demand. The increase in net sales was driven by higher average direct selling prices and higher volume. Operating income of $94.3 million was $96.1 million higher than the loss in the prior year quarter on improved direct spreads and the impact of higher volume. Direct spreads benefited from significant inventory holding gains, estimated to be $50.5 million in the current quarter compared to $0.6 million in the prior year quarter. The mix of direct versus toll tons processed was 48% to 52% in the current quarter, compared to 45% to 55% in the prior year quarter.

Pressure Cylinders’ net sales totaled $323.1 million, up 14%, or $40.2 million, over the comparable prior year quarter due to higher volumes in both the consumer and industrial products businesses. Operating income of $13.0 million was $0.5 million less than the prior year quarter. Excluding impairment and restructuring charges, operating income was up $9.3 million over the prior year quarter to $31.1 million, driven by higher volumes combined with the impact of divestitures of underperforming businesses completed earlier in the fiscal year.  

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 $608 and $1,521 at May 31, 2021              
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 $80,513 and              
$92,774 at May 31, 2021 and May 31, 2020, respectively   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
Interest
1
    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
Interest
1
    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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Source: Worthington Industries, Inc.

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