Worthington Industries, Inc. (NYSE: WOR) today reported net sales
of $731.1 million and a net loss of $74.0 million, or $(1.40) per
diluted share, for its fiscal 2021 second quarter ended November
30, 2020. In the second quarter of fiscal 2020, the Company
reported net sales of $827.6 million and net earnings of $52.1
million, or $0.93 per diluted share. Results in both the current
and prior year quarter were impacted by several unique items, as
summarized below, including a combined pre-tax loss of $148.4
million, or $(2.18) per diluted share, in the current quarter
related to the Company’s investment in Nikola Corporation
(“Nikola”). See Recent Developments below for further information
regarding the Company’s investment in Nikola.
(U.S. dollars in millions, except per share
amounts)
|
|
2Q 2021 |
|
2Q 2020 |
|
|
|
Pre-Tax |
|
EPS |
|
Pre-Tax |
|
EPS |
|
Impairment and restructuring charges |
|
$ |
(11.4 |
) |
|
$ |
(0.17 |
) |
|
$ |
- |
|
$ |
- |
|
Incremental expenses related
to Nikola gains |
|
|
(4.6 |
) |
|
|
(0.07 |
) |
|
|
- |
|
|
- |
|
Unrealized loss on investment
in Nikola |
|
|
(143.8 |
) |
|
|
(2.11 |
) |
|
|
- |
|
|
- |
|
Gain on sale of WAVE
international operations |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
23.1 |
|
$ |
0.33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial highlights for the current and comparative periods are
as follows:
(U.S. dollars in millions, except per share amounts)
|
|
2Q 2021 |
|
2Q 2020 |
|
6M 2021 |
|
6M 2020 |
|
Net sales |
|
$ |
731.1 |
|
|
$ |
827.6 |
|
|
$ |
1,434.0 |
|
$ |
1,683.5 |
|
Operating income |
|
|
37.4 |
|
|
|
32.1 |
|
|
|
7.2 |
|
|
17.5 |
|
Equity income |
|
|
25.6 |
|
|
|
47.3 |
|
|
|
49.3 |
|
|
72.1 |
|
Net earnings (loss) |
|
|
(74.0 |
) |
|
|
52.1 |
|
|
|
542.6 |
|
|
47.3 |
|
Earnings (loss) per diluted
share |
|
$ |
(1.40 |
) |
|
$ |
0.93 |
|
|
$ |
9.97 |
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“We had an outstanding second quarter, despite
some noise in the numbers, due to continued great work by our teams
as we navigate the challenges of the ongoing COVID-19 pandemic,”
said President & CEO Andy Rose. “Steel Processing
delivered strong year over year earnings growth, aided by stable
automotive and construction demand and improving agricultural
demand. Pressure Cylinders continued to experience solid
demand for its consumer products, particularly for portable propane
and helium products, while headwinds persisted in Europe and the
oil & gas business.”
Consolidated Quarterly Results
Net sales for the second quarter of fiscal 2021
were $731.1 million, down 12% from the comparable quarter in the
prior year, when net sales were $827.6 million. The decrease was
driven primarily by lower average selling prices in Steel
Processing, lower volumes in the oil and gas equipment business in
Pressure Cylinders, and the divestiture of the engineered cabs
business in the prior year.
Gross margin
increased $14.9 million over the prior year quarter to $135.5
million as lower conversion costs and improved spreads in Steel
Processing were partially offset by a decline in the oil and gas
equipment business in Pressure Cylinders.
Operating income for the current quarter was
$37.4 million, an increase of $5.2 million over the prior year
quarter. The impact of higher gross margin and lower SG&A
expense was partially offset by higher combined impairment and
restructuring charges, and the profit sharing and bonus expenses
related to the Company’s investment in Nikola.
Interest expense was $7.5 million for the
current quarter, compared to $7.3 million in the prior year
quarter. The increase was due primarily to higher average debt
levels.
Equity income from unconsolidated joint ventures
decreased $21.7 million from the prior year quarter, which included
a $23.1 million pre-tax gain related to the sale of WAVE’s
international operations. Excluding the gain in the prior year
quarter, equity income increased $1.4 million primarily due to
higher contributions from Serviacero. The Company received cash
distributions of $30.2 million from its unconsolidated joint
ventures during the quarter.
Income tax benefit was $19.4 million in the
current quarter compared to income tax expense of $15.9 million in
the prior year quarter. The current quarter income tax benefit was
due to the unrealized mark-to-market loss on the Company’s
investment in Nikola. Tax expense in the current quarter reflects
an estimated annual effective rate of 21.5% compared to 24.8% for
the prior year quarter.
Balance Sheet
At quarter-end, total debt was $707.5 million,
relatively consistent with debt at August 31, 2020, and the Company
had $713.1 million of cash.
Quarterly Segment Results
Steel Processing’s net sales totaled $468.7
million, down 9%, or $48.2 million, from the comparable prior year
quarter driven by lower average selling prices. Operating income of
$37.8 million was $20.7 million higher than the prior year quarter
as the impact of lower average selling prices was more than offset
by lower conversion costs, improved spreads, and the lack of
inventory holding losses, which negatively impacted the prior year
quarter by an estimated $6.5 million. The mix of direct versus toll
tons processed was 48% to 52% in the current quarter, compared to
49% to 51% in the prior year quarter.
Pressure Cylinders’ net sales totaled $262.3
million, down 10%, or $27.9 million, from the comparable prior year
quarter due primarily to lower volume in the oil and gas equipment
business. Operating income of $3.3 million was $12.3 million less
than the prior year quarter. The decrease was driven by current
quarter impairment and restructuring charges, which totaled $11.1
million, and lower volume in the oil and gas equipment business,
partially offset by lower SG&A expense and improvements in the
industrial products business.
Recent Developments
- In
October 2020, the Company sold its cryogenic trailer and hydrogen
trailer business, including the Theodore, Ala. manufacturing site,
to Chart Industries, Inc. and its cryo-science and microbulk
business to IC Biomedical US, LLC. The combined sale proceeds from
the two transactions were $21.2 million, resulting in a pre-tax
loss of $7.1 million within restructuring and other expense.
- During
the second quarter of fiscal 2021, the Company repurchased a total
of 857,980 of its common shares for $38.6 million, at an average
purchase price of $44.95.
- During
the second quarter of fiscal 2021, the Company recognized a
combined pre-tax loss of $148.4 million, or $(2.18) per diluted
share, related to its investment in Nikola comprised of an
unrealized mark-to-market loss of $143.8 million and $4.6 million
of profit sharing and bonus expenses. At quarter end,
the Company owned 7,048,020 shares of Nikola common stock.
Outlook
“We are optimistic that demand for our key end
markets will remain steady,” Rose said. “The tight steel
market, while challenging, is an opportunity to differentiate
ourselves from our competitors. As we enter 2021, we are well
positioned, and will look to drive growth through innovation,
transformation and strategic acquisitions.”
Conference Call
Worthington will review fiscal 2021 second
quarter results during its quarterly conference call on December
17, 2020, at 2:00 p.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®
and Well-X-Trol®. Worthington’s WAVE joint venture with Armstrong
is the North American leader in innovative ceiling
solutions.Headquartered in Columbus, Ohio, Worthington operates 51
facilities in 15 states and six countries, sells into over 90
countries and employs approximately 7,500 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 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
the impacts from the Novel Coronavirus (COVID-19”) and the actions
taken by governmental authorities and others related thereto,
including our ability to continue operating facilities in
connection therewith or to cut variable costs; 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 COVID-19 and other actual or
potential public health emergencies and actions taken by
governmental authorities or others in connection therewith, their
potential impacts related to the ability and costs to continue to
operate facilities and their potential to exacerbate other risks;
the effect of national, regional and global economic conditions
generally and within major product markets, including significant
economic disruptions from COVID-19 and the actions taken therewith;
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;
lower oil prices as a factor in demand for products; 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, oil and gas, 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 judicial rulings and governmental regulations, both in the
United States and abroad, including those adopted by the United
States governmental agencies as contemplated by the Coronavirus
Aid, Relief and Economic Security (CARES) Act and the Dodd-Frank
Wall Street Reform and 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
(LOSS)(In thousands, except per share
amounts)
|
Three Months EndedNovember
30, |
|
|
Six Months EndedNovember 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Net sales |
$ |
731,092 |
|
|
$ |
827,637 |
|
|
$ |
1,434,001 |
|
|
$ |
1,683,496 |
|
Cost of goods sold |
|
595,618 |
|
|
|
707,026 |
|
|
|
1,185,169 |
|
|
|
1,445,594 |
|
Gross margin |
|
135,474 |
|
|
|
120,611 |
|
|
|
248,832 |
|
|
|
237,902 |
|
Selling, general and
administrative expense |
|
82,129 |
|
|
|
88,543 |
|
|
|
164,325 |
|
|
|
179,366 |
|
Impairment of long-lived
assets |
|
3,815 |
|
|
|
- |
|
|
|
13,739 |
|
|
|
40,601 |
|
Restructuring and other
expense (income), net |
|
7,596 |
|
|
|
(50 |
) |
|
|
9,444 |
|
|
|
405 |
|
Incremental expenses related
to Nikola gains |
|
4,570 |
|
|
|
- |
|
|
|
54,081 |
|
|
|
- |
|
Operating income |
|
37,364 |
|
|
|
32,118 |
|
|
|
7,243 |
|
|
|
17,530 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income, net |
|
376 |
|
|
|
636 |
|
|
|
827 |
|
|
|
1,331 |
|
Interest expense |
|
(7,548 |
) |
|
|
(7,315 |
) |
|
|
(15,138 |
) |
|
|
(16,795 |
) |
Equity in net income of unconsolidated affiliates |
|
25,631 |
|
|
|
47,346 |
|
|
|
49,265 |
|
|
|
72,113 |
|
Gains (loss) on investment in Nikola |
|
(143,780 |
) |
|
|
- |
|
|
|
652,362 |
|
|
|
- |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(4,034 |
) |
Earnings (loss) before income taxes |
|
(87,957 |
) |
|
|
72,785 |
|
|
|
694,559 |
|
|
|
70,145 |
|
Income tax expense
(benefit) |
|
(19,445 |
) |
|
|
15,863 |
|
|
|
144,333 |
|
|
|
15,678 |
|
Net earnings (loss) |
|
(68,512 |
) |
|
|
56,922 |
|
|
|
550,226 |
|
|
|
54,467 |
|
Net earnings attributable to
noncontrolling interests |
|
5,532 |
|
|
|
4,836 |
|
|
|
7,595 |
|
|
|
7,157 |
|
Net earnings (loss)
attributable to controlling interest |
$ |
(74,044 |
) |
|
$ |
52,086 |
|
|
$ |
542,631 |
|
|
$ |
47,310 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
52,988 |
|
|
|
55,059 |
|
|
|
53,532 |
|
|
|
55,150 |
|
Earnings (loss) per
share attributable to controlling interest |
$ |
(1.40 |
) |
|
$ |
0.95 |
|
|
$ |
10.14 |
|
|
$ |
0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares
outstanding |
|
52,988 |
|
|
|
56,072 |
|
|
|
54,439 |
|
|
|
56,205 |
|
Earnings (loss) per
share attributable to controlling interest |
$ |
(1.40 |
) |
|
$ |
0.93 |
|
|
$ |
9.97 |
|
|
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at
end of period |
|
52,754 |
|
|
|
55,094 |
|
|
|
52,754 |
|
|
|
55,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per
share |
$ |
0.25 |
|
|
$ |
0.24 |
|
|
$ |
0.50 |
|
|
$ |
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES,
INC.CONSOLIDATED BALANCE
SHEETS(In thousands)
|
November 30, |
|
|
May 31, |
|
|
2020 |
|
|
2020 |
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
713,130 |
|
|
$ |
147,198 |
|
Receivables, less allowances of $1,291 and $1,521 at November 30,
2020 |
|
|
|
|
|
|
|
and May 31, 2020, respectively |
|
441,936 |
|
|
|
341,038 |
|
Inventories: |
|
|
|
|
|
|
|
Raw materials |
|
152,824 |
|
|
|
234,629 |
|
Work in process |
|
82,747 |
|
|
|
76,497 |
|
Finished products |
|
68,872 |
|
|
|
93,975 |
|
Total inventories |
|
304,443 |
|
|
|
405,101 |
|
Income taxes receivable |
|
3,247 |
|
|
|
8,376 |
|
Assets held for sale |
|
12,893 |
|
|
|
12,928 |
|
Investment in Nikola |
|
143,850 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
68,371 |
|
|
|
68,538 |
|
Total current assets |
|
1,687,870 |
|
|
|
983,179 |
|
Investments in unconsolidated
affiliates |
|
209,952 |
|
|
|
203,329 |
|
Operating lease assets |
|
30,007 |
|
|
|
31,557 |
|
Goodwill |
|
320,014 |
|
|
|
321,434 |
|
Other intangible assets, net
of accumulated amortization of $86,489 and |
|
|
|
|
|
|
|
$92,774 at November 30, 2020 and May 31, 2020, respectively |
|
174,376 |
|
|
|
184,416 |
|
Other assets |
|
32,842 |
|
|
|
34,956 |
|
Property, plant and
equipment: |
|
|
|
|
|
|
|
Land |
|
23,592 |
|
|
|
24,197 |
|
Buildings and improvements |
|
292,544 |
|
|
|
302,796 |
|
Machinery and equipment |
|
1,082,979 |
|
|
|
1,055,139 |
|
Construction in progress |
|
63,526 |
|
|
|
52,231 |
|
Total property, plant and equipment |
|
1,462,641 |
|
|
|
1,434,363 |
|
Less: accumulated depreciation |
|
890,317 |
|
|
|
861,719 |
|
Total property, plant and equipment, net |
|
572,324 |
|
|
|
572,644 |
|
Total
assets |
$ |
3,027,385 |
|
|
$ |
2,331,515 |
|
|
|
|
|
|
|
|
|
Liabilities and
equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$ |
337,976 |
|
|
$ |
247,017 |
|
Accrued compensation, contributions to employee benefit plans
and |
|
|
|
|
|
|
|
related taxes |
|
101,812 |
|
|
|
64,650 |
|
Dividends payable |
|
14,843 |
|
|
|
14,648 |
|
Other accrued items |
|
51,439 |
|
|
|
49,974 |
|
Current operating lease liabilities |
|
10,954 |
|
|
|
10,851 |
|
Income taxes payable |
|
39,990 |
|
|
|
949 |
|
Current maturities of long-term debt |
|
160 |
|
|
|
149 |
|
Total current liabilities |
|
557,174 |
|
|
|
388,238 |
|
Other liabilities |
|
85,105 |
|
|
|
75,786 |
|
Distributions in excess of
investment in unconsolidated affiliate |
|
107,951 |
|
|
|
103,837 |
|
Long-term debt |
|
707,340 |
|
|
|
699,516 |
|
Noncurrent operating lease
liabilities |
|
23,695 |
|
|
|
25,763 |
|
Deferred income taxes,
net |
|
115,649 |
|
|
|
71,942 |
|
Total liabilities |
|
1,596,914 |
|
|
|
1,365,082 |
|
Shareholders' equity -
controlling interest |
|
1,276,899 |
|
|
|
820,821 |
|
Noncontrolling interests |
|
153,572 |
|
|
|
145,612 |
|
Total equity |
|
1,430,471 |
|
|
|
966,433 |
|
Total liabilities and
equity |
$ |
3,027,385 |
|
|
$ |
2,331,515 |
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES,
INC.CONSOLIDATED STATEMENTS OF CASH
FLOWS(In thousands)
|
Three Months EndedNovember
30, |
|
|
Six Months EndedNovember 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss) |
$ |
(68,512 |
) |
|
$ |
56,922 |
|
|
$ |
550,226 |
|
|
$ |
54,467 |
|
Adjustments to reconcile net
earnings (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
21,560 |
|
|
|
22,596 |
|
|
|
43,771 |
|
|
|
46,773 |
|
Impairment of long-lived assets |
|
3,815 |
|
|
|
- |
|
|
|
13,739 |
|
|
|
40,601 |
|
Provision for (benefit from) deferred income taxes |
|
(31,776 |
) |
|
|
6,843 |
|
|
|
39,255 |
|
|
|
3,345 |
|
Bad debt (income) expense |
|
(159 |
) |
|
|
143 |
|
|
|
(65 |
) |
|
|
311 |
|
Equity in net income of unconsolidated affiliates, net of
distributions |
|
4,608 |
|
|
|
(19,879 |
) |
|
|
(2,149 |
) |
|
|
(14,797 |
) |
Net (gain) loss on sale of assets |
|
7,271 |
|
|
|
(17 |
) |
|
|
7,673 |
|
|
|
601 |
|
Stock-based compensation |
|
4,854 |
|
|
|
3,280 |
|
|
|
9,710 |
|
|
|
7,275 |
|
(Gains) loss on investment in Nikola |
|
143,779 |
|
|
|
- |
|
|
|
(652,362 |
) |
|
|
- |
|
Charitable contribution of Nikola shares |
|
- |
|
|
|
- |
|
|
|
20,653 |
|
|
|
- |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,034 |
|
Changes in assets and
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
3,580 |
|
|
|
(5,456 |
) |
|
|
(78,614 |
) |
|
|
9,525 |
|
Inventories |
|
4,623 |
|
|
|
43,601 |
|
|
|
90,245 |
|
|
|
87,883 |
|
Accounts payable |
|
48,176 |
|
|
|
(20,743 |
) |
|
|
95,330 |
|
|
|
(57,977 |
) |
Accrued compensation and employee benefits |
|
13,960 |
|
|
|
9,619 |
|
|
|
37,812 |
|
|
|
(13,596 |
) |
Income taxes payable |
|
(44,623 |
) |
|
|
(118 |
) |
|
|
39,041 |
|
|
|
(1,132 |
) |
Other operating items, net |
|
(3,728 |
) |
|
|
7,369 |
|
|
|
10,551 |
|
|
|
1,216 |
|
Net cash provided by
operating activities |
|
107,428 |
|
|
|
104,160 |
|
|
|
224,816 |
|
|
|
168,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in property, plant and equipment |
|
(16,073 |
) |
|
|
(28,381 |
) |
|
|
(48,944 |
) |
|
|
(50,555 |
) |
Proceeds from sale of Nikola shares |
|
- |
|
|
|
- |
|
|
|
487,859 |
|
|
|
- |
|
Acquisitions, net of cash acquired |
|
(75 |
) |
|
|
(29,283 |
) |
|
|
(75 |
) |
|
|
(29,283 |
) |
Proceeds from sale of assets |
|
21,580 |
|
|
|
23 |
|
|
|
21,580 |
|
|
|
9,199 |
|
Net cash provided
(used) by investing activities |
|
5,432 |
|
|
|
(57,641 |
) |
|
|
460,420 |
|
|
|
(70,639 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term debt, net of issuance costs |
|
- |
|
|
|
(134 |
) |
|
|
- |
|
|
|
101,464 |
|
Principal payments on long-term obligations and debt redemption
costs |
|
(96 |
) |
|
|
(490 |
) |
|
|
(193 |
) |
|
|
(154,467 |
) |
Proceeds from issuance of common shares, net of tax
withholdings |
|
2,294 |
|
|
|
(3,811 |
) |
|
|
1,144 |
|
|
|
(7,024 |
) |
Payments to noncontrolling interests |
|
- |
|
|
|
(1,453 |
) |
|
|
(560 |
) |
|
|
(1,453 |
) |
Repurchase of common shares |
|
(38,563 |
) |
|
|
- |
|
|
|
(92,883 |
) |
|
|
(29,599 |
) |
Dividends paid |
|
(13,433 |
) |
|
|
(13,954 |
) |
|
|
(26,812 |
) |
|
|
(26,914 |
) |
Net cash used by
financing activities |
|
(49,798 |
) |
|
|
(19,842 |
) |
|
|
(119,304 |
) |
|
|
(117,993 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash
and cash equivalents |
|
63,062 |
|
|
|
26,677 |
|
|
|
565,932 |
|
|
|
(20,103 |
) |
Cash and cash equivalents at
beginning of period |
|
650,068 |
|
|
|
45,583 |
|
|
|
147,198 |
|
|
|
92,363 |
|
Cash and cash
equivalents at end of period |
$ |
713,130 |
|
|
$ |
72,260 |
|
|
$ |
713,130 |
|
|
$ |
72,260 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 EndedNovember
30, |
|
|
Six Months EndedNovember 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Volume: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing (tons) |
|
1,023,979 |
|
|
|
1,004,847 |
|
|
|
1,952,423 |
|
|
|
1,896,234 |
|
Pressure Cylinders (units) |
|
19,180,746 |
|
|
|
21,608,356 |
|
|
|
40,923,811 |
|
|
|
41,792,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
468,723 |
|
|
$ |
516,937 |
|
|
$ |
899,743 |
|
|
$ |
1,040,312 |
|
Pressure Cylinders |
|
262,284 |
|
|
|
290,136 |
|
|
|
533,188 |
|
|
|
594,532 |
|
Other |
|
85 |
|
|
|
20,564 |
|
|
|
1,070 |
|
|
|
48,652 |
|
Total net sales |
$ |
731,092 |
|
|
$ |
827,637 |
|
|
$ |
1,434,001 |
|
|
$ |
1,683,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Material cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
313,330 |
|
|
$ |
370,760 |
|
|
$ |
618,917 |
|
|
$ |
767,202 |
|
Pressure Cylinders |
|
108,930 |
|
|
|
127,112 |
|
|
|
224,647 |
|
|
|
253,982 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
38,769 |
|
|
$ |
37,482 |
|
|
$ |
74,367 |
|
|
$ |
72,998 |
|
Pressure Cylinders |
|
44,677 |
|
|
|
48,749 |
|
|
|
88,134 |
|
|
|
95,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
37,824 |
|
|
$ |
17,172 |
|
|
$ |
51,441 |
|
|
$ |
23,340 |
|
Pressure Cylinders |
|
3,305 |
|
|
|
15,647 |
|
|
|
11,947 |
|
|
|
45,270 |
|
Other |
|
(322 |
) |
|
|
(1,919 |
) |
|
|
(1,081 |
) |
|
|
(47,051 |
) |
Segment operating income |
|
40,807 |
|
|
|
30,900 |
|
|
|
62,307 |
|
|
|
21,559 |
|
Unallocated corporate and other |
|
1,127 |
|
|
|
1,218 |
|
|
|
(983 |
) |
|
|
(4,029 |
) |
Incremental expenses related to Nikola gains |
|
(4,570 |
) |
|
|
- |
|
|
|
(54,081 |
) |
|
|
- |
|
Total operating income |
$ |
37,364 |
|
|
$ |
32,118 |
|
|
$ |
7,243 |
|
|
$ |
17,530 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity income (loss) by
unconsolidated affiliate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WAVE |
$ |
17,280 |
|
|
$ |
41,738 |
|
|
$ |
34,936 |
|
|
$ |
65,655 |
|
ClarkDietrich |
|
5,411 |
|
|
|
4,917 |
|
|
|
10,307 |
|
|
|
9,007 |
|
Serviacero Worthington |
|
1,861 |
|
|
|
803 |
|
|
|
3,170 |
|
|
|
1,557 |
|
ArtiFlex |
|
1,253 |
|
|
|
1,134 |
|
|
|
1,145 |
|
|
|
1,340 |
|
Other |
|
(174 |
) |
|
|
(1,246 |
) |
|
|
(293 |
) |
|
|
(5,446 |
) |
Total equity income |
$ |
25,631 |
|
|
$ |
47,346 |
|
|
$ |
49,265 |
|
|
$ |
72,113 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 EndedNovember
30, |
|
|
Six Months EndedNovember 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Volume (units): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer products |
|
15,915,466 |
|
|
|
18,675,057 |
|
|
|
33,772,607 |
|
|
|
35,573,447 |
|
Industrial products |
|
3,265,076 |
|
|
|
2,932,923 |
|
|
|
7,150,881 |
|
|
|
6,217,378 |
|
Oil & gas equipment |
|
204 |
|
|
|
376 |
|
|
|
323 |
|
|
|
1,219 |
|
Total Pressure Cylinders |
|
19,180,746 |
|
|
|
21,608,356 |
|
|
|
40,923,811 |
|
|
|
41,792,044 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer products |
$ |
121,618 |
|
|
$ |
128,065 |
|
|
$ |
254,400 |
|
|
$ |
247,545 |
|
Industrial products |
|
134,020 |
|
|
|
130,334 |
|
|
|
262,245 |
|
|
|
282,952 |
|
Oil & gas equipment |
|
6,646 |
|
|
|
31,737 |
|
|
|
16,543 |
|
|
|
64,035 |
|
Total Pressure Cylinders |
$ |
262,284 |
|
|
$ |
290,136 |
|
|
$ |
533,188 |
|
|
$ |
594,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following
provides detail of impairment of long-lived assets and
restructuring and other expense (income), net included in operating
income by segment. |
|
|
|
|
Three Months EndedNovember
30, |
|
|
Six Months EndedNovember 30, |
|
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Impairment of long-lived
assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Pressure Cylinders |
|
3,815 |
|
|
|
- |
|
|
|
13,739 |
|
|
|
- |
|
Other |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
40,601 |
|
Total impairment of long-lived assets |
$ |
3,815 |
|
|
$ |
- |
|
|
$ |
13,739 |
|
|
$ |
40,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other
expense (income), net: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
$ |
375 |
|
|
$ |
- |
|
|
$ |
1,846 |
|
|
$ |
(26 |
) |
Pressure Cylinders |
|
7,257 |
|
|
|
- |
|
|
|
7,571 |
|
|
|
- |
|
Other |
|
(36 |
) |
|
|
(50 |
) |
|
|
27 |
|
|
|
431 |
|
Total restructuring and other expense (income), net |
$ |
7,596 |
|
|
$ |
(50 |
) |
|
$ |
9,444 |
|
|
$ |
405 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contacts:SONYA L. HIGGINBOTHAMVP, CORPORATE
COMMUNICATIONS AND BRAND MANAGEMENT614.438.7391 |
sonya.higginbotham@worthingtonindustries.com
MARCUS A. ROGIERTREASURER AND INVESTOR
RELATIONS OFFICER614.840.4663 |
marcus.rogier@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio
43085WorthingtonIndustries.com
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