Worthington Reports Fourth Quarter and Fiscal Year Results
Record Earnings per Share of $2.11 for Fiscal 2014
COLUMBUS, OH--(Marketwired - Jun 26, 2014) - Worthington
Industries, Inc. (NYSE: WOR) today reported net sales of $891.0
million and net earnings of $33.2 million, or $0.47 per diluted
share, for its fiscal 2014 fourth quarter ended May 31,
2014.
Net earnings in the quarter include impairment and restructuring
charges that reduced earnings by $23.7 million, or $0.21 per share
after tax. The most significant charge was a $19.0 million
impairment of Worthington Nitin Cylinders, a 60% owned joint
venture in India. Worthington's portion of this charge was
$11.4 million after eliminating our partner's $7.6 million share in
the non-controlling interest line. In addition, earnings
benefitted from a $4.9 million pre-tax gain in SG&A as we
settled a legal dispute with a supplier involved in the 2012 recall
of cylinders, and we recorded $2.7 million of miscellaneous income
for insurance proceeds related to property damaged in a fire at our
Austria cylinder plant. The after tax benefit of these two
items was $0.07 per share.
In the fourth quarter of the prior year, the Company reported
net sales of $704.1 million and net earnings of $33.5 million, or
$0.46 per diluted share. Included in the prior quarter were
several impairment and other charges totaling $10.8 million pretax,
which reduced earnings per diluted share by $0.14.
For the fiscal year ended May 31, 2014, the Company reported net
earnings of $151.3 million, or $2.11 per diluted share. Net sales
were up 20%, or $514.2 million, from the prior year due to the
consolidation of the Company's laser-welded blanks joint venture
(TWB), higher volumes in Steel Processing, and recent acquisitions
in Pressure Cylinders. Current year net earnings were adversely
affected by impairment and other non-recurring items which resulted
in a net charge of $36.0 million, pretax, or $0.22 per diluted
share. In the prior year, earnings included $13.0 million of
pre-tax impairment and restructuring charges, or $0.17 per diluted
share.
Financial highlights for the current and comparative periods are
as follows:
|
(U.S. dollars in millions, except per share
data) |
|
|
|
4Q 2014 |
|
3Q 2014 |
|
4Q 2013 |
|
12M2014 |
|
12M2013 |
Net
sales |
|
$ |
891.0 |
|
$ |
773.2 |
|
$ |
704.1 |
|
$ |
3,126.4 |
|
$ |
2,612.2 |
Operating income |
|
|
32.3 |
|
|
45.3 |
|
|
33.5 |
|
|
135.8 |
|
|
129.1 |
Equity income |
|
|
22.2 |
|
|
21.2 |
|
|
21.0 |
|
|
91.5 |
|
|
94.6 |
Net
earnings |
|
|
33.2 |
|
|
40.6 |
|
|
33.5 |
|
|
151.3 |
|
|
136.4 |
Earnings per share |
|
$ |
0.47 |
|
$ |
0.57 |
|
$ |
0.46 |
|
$ |
2.11 |
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
"We had a great fiscal 2014 with the highest annual earnings per
share in our Company's history," said John McConnell, Chairman and
CEO. "The fourth quarter results showed improvement over the
prior year period with Steel Processing leading the way. Our
transformation efforts continue to help that business deliver
strong results as it nears the peak volumes we saw prior to the
downturn." McConnell added, "Pressure Cylinders had good
retail and industrial sales but experienced a negative short-term
impact from the severe winter weather conditions in the energy
business. Transformation is underway with some early success in our
Engineered Cabs business while it operates in a flat market
environment. All in all, we are pleased with the year
over-year-results and our ability to keep our commitment to
shareholders through our stock buy-back and the increase in our
dividend. I want to congratulate our employees for their hard
work and dedication to improving all aspects of our
businesses."
Consolidated Quarterly Results
Net sales for the fourth quarter ended May 31, 2014 were $891.0
million, up 27% from the comparable quarter in the prior year, when
net sales were $704.1 million. The increase resulted from higher
overall volumes, aided by acquisitions.
Gross margin for the current quarter was $130.8 million,
compared to $111.1 million in the prior year quarter. The $19.7
million increase was the result of higher overall
volumes.
Operating income for the current quarter was $32.3 million, a
decrease of $1.2 million from the prior year quarter, as the
improvement in gross margin was more than offset by higher
impairment charges and a $4.2 million increase in SG&A
expense. The increase in SG&A expense was driven by the
impact of acquisitions and higher profit sharing and bonus expense
partially offset by the $4.9 million net gain related to the
settlement of the legal dispute described above. Impairment
charges in the current quarter included $19.0 million related to
Worthington Nitin Cylinders, $2.5 million related to the Company's
stainless steel business, Precision Specialty Metals, and $1.4
million related to the Company's aluminum high-pressure cylinder
business in New Albany, Mississippi.
Interest expense was $8.0 million for the current quarter,
compared to $6.2 million in the comparable period in the prior
year. The increase was due to the impact of higher average
debt levels and higher average interest rates resulting from an
increase in the usage of long-term debt versus short-term
debt.
Equity in net income from unconsolidated joint ventures
increased $1.2 million over the prior year quarter to $22.2 million
on sales of $371.4 million. Excluding the removal of TWB from
equity income, due to its consolidation, and a $4.8 million charge
for the write-off of our China metal framing JV in the prior year,
equity income was essentially flat compared to the prior year
quarter. However, income from ClarkDietrich decreased $2.0
million on lower volumes related to severe weather
conditions. This decrease was offset by increases in WAVE and
Serviacero. All joint ventures posted positive results led by
WAVE, Serviacero and ArtiFlex, which contributed $16.3 million,
$2.5 million, and $1.5 million of equity income, respectively.
Income tax expense was $18.4 million in the current quarter
compared to $16.7 million in the comparable quarter in the prior
year. The current quarter tax expense reflected an effective
rate of 35.7% compared to 33.3% for the prior year
quarter.
Balance Sheet
At quarter end, total debt was $666.3 million, up $224.5 million
from February 28, 2014, due to the April 15, 2014, issuance of
$250.0 million aggregate principal amount of senior notes due
2026. A portion of the net proceeds were used to repay
borrowings then outstanding under both the Company's $425.0 million
revolving credit facility and its $100.0 million trade accounts
receivable securitization facility. The Company had $190
million of cash at quarter end, $100 million of which will be used
to repay $100 million of current notes due in December 2014.
Quarterly Segment Results
Steel Processing's net sales of $563.5 million were up 48%, or
$183.9 million, from the prior year quarter primarily from the
consolidation of TWB and increased sales in the automotive,
agriculture and construction markets. Operating income
increased by $13.3 million to $33.3 million due primarily to the
increase in volume and the addition of TWB. The overall
increase in operating income was partially offset by the $2.5
million impairment charge related to Precision Specialty
Metals.
Pressure Cylinders' net sales of $264.2 million were up 5%, or
$11.9 million, from the comparable prior year quarter driven by
recent acquisitions and higher average selling prices in retail
products. Operating income was $6.0 million, a decrease of
$10.4 million from the prior year quarter, as the favorable impact
of recent acquisitions was more than offset by the impairment
charges.
Engineered Cabs' net sales declined $2.4 million in the current
quarter to $52.7 million as lower average selling prices, due to
product mix, more than offset the impact of higher overall
volumes. Operating loss in the current quarter increased $3.0
million to $4.2 million on lower net sales and higher manufacturing
and SG&A expense.
The "Other" category includes the Construction Services and
Energy Innovations operating segments, as well as non-allocated
corporate expenses. Operations in the "Other" category
reported net sales of $10.6 million, a decrease of $6.4 million
from the prior year quarter, mostly due to the Construction
Services business. The "Other" category reported an operating
loss of $2.8 million driven by losses within Construction
Services. The Mid-Rise business within construction services
was shut down as of May 31, 2014.
Recent Business Developments
- On March 27, 2014, the Company acquired the tank manufacturing
division of Steffes Corporation for cash consideration of $28.9
million. Steffes manufactures oilfield storage tanks for
customers drilling in the Bakken shale and Williston Basin region
from its manufacturing facility in Dickinson, ND.
- On April 15, 2014, the Company completed the public offering of
$250.0 million aggregate principal amount of senior notes due
2026. The notes bear interest at an annual rate of 4.55%.
- During the quarter, the Company repurchased a total of
1,000,000 common shares for $37.1 million at an average price of
$37.14.
- On June 25, 2014, the board of directors declared a quarterly
dividend of $0.18 per share payable on September 29, 2014 to
shareholders of record on September 12, 2014.
- On June 25, 2014, the Board of Directors authorized the
repurchase of an additional 10.0 million shares. This is in
addition to the 1.7 million shares remaining under the 2011
authorization.
Highlights for Fiscal 2014
- On July 31, 2013, the Company acquired an additional 10%
interest in the laser welded blanks joint venture, TWB, increasing
the ownership to a 55% controlling interest. TWB's results have
been consolidated within Steel Processing since that date, with the
minority member's portion of earnings eliminated within earnings
attributable to non-controlling interest.
- During the second quarter of fiscal 2014, a re-branding
initiative was launched to brand substantially all of the
businesses under the Worthington Industries name. In
connection with the branding strategy, the Company discontinued the
use of non-Worthington trade names except for retail brand names
including BernzOmatic® and Balloon Time® and those related to our
joint ventures.
- An agreement was finalized in October 2013 with Nisshin Steel
Co., Ltd. and Marubeni-Itochu Steel Inc. to form Zhejiang Nisshin
Worthington Precision Specialty Steel Co., Ltd. The joint
venture will construct a plant in Zhejiang Province in the People's
Republic of China that will produce cold rolled strip steel
primarily for the automotive industry. Worthington will own a
10% interest in the joint venture with the option to increase its
ownership interest to 34%.
- The Company entered into an agreement in November 2013 to sell
the operating assets related to our steel high pressure and
acetylene cylinders business in North America.
- On December 10, 2013, the Company announced the closure of its
Baltimore steel facility. With the consolidation of the steel
industry, many of the mills that previously supplied the Baltimore
facility have closed, negatively impacting the supply chain
there. The Company has concluded that it can more efficiently
service its customers in the Mid-Atlantic Region from other
Worthington facilities and processing partners. The facility is no
longer operating as of May 31, 2014.
- Worthington acquired a 75% interest in Worthington Aritas, one
of Europe's leading LNG (liquefied natural gas) and cryogenic
technology companies in January, 2014 for cash consideration of
$35.6 million. The remaining 25% stake was retained by the prior
owners.
- During fiscal 2014, the Company repurchased a total of
3,380,500 common shares for $128.2 million at an average price of
$37.93.
Outlook
"We anticipate continued year-over-year growth in fiscal 2015 as
we pursue our strategy and our commitment to delivering consistent
earnings growth," McConnell said. "Automotive should remain
strong and we are seeing some signs of positive growth in the
construction markets. We also expect good results from key
Pressure Cylinders markets in retail, industrial, alternative fuels
and energy products. We will continue to drive improvements
throughout our businesses and we will pursue acquisitions which
enhance existing businesses, providing new products and higher
growth markets."
Conference Call
Worthington will review fourth quarter and full-year results
during its quarterly conference call on June 26, 2014, at 10:30
a.m., Eastern Daylight Saving Time. Details regarding the
conference call can be found on the Company web site at
www.WorthingtonIndustries.com.
Corporate Profile
Worthington Industries is a leading diversified metals
manufacturing company with 2014 fiscal year sales of $3.1 billion.
The Columbus, Ohio based company is North America's premier
value-added steel processor and a leader in manufactured metal
products, such as propane, oxygen, refrigerant and industrial
cylinders, hand torches, camping cylinders, scuba tanks, compressed
natural gas storage cylinders, helium balloon kits and exploration,
recovery and production tanks for global energy markets;
custom-engineered open and enclosed cabs and operator stations for
heavy mobile equipment; laser welded blanks; steel pallets and
racks; and through joint ventures, suspension grid systems for
concealed and lay-in panel ceilings, current and past model
automotive service stampings and light gauge steel framing for
commercial and residential construction. Worthington employs
approximately 10,000 people and operates 80 facilities in 10
countries.
Founded in 1955, the Company operates under a long-standing
corporate philosophy rooted in the golden rule. Earning money for
its shareholders is the first corporate goal. This philosophy
serves as an unwavering commitment to the customer, supplier, and
shareholder, and it serves as the Company's foundation for one of
the strongest employee-employer partnerships in American
industry.
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 outlook,
strategy or business plans; future or expected growth,
performance, sales, volumes, cash flows, earnings, balance sheet
strengths, debt, financial condition or other financial measures;
projected profitability potential, capacity, and working capital
needs; or demand trends for the Company or its markets; additions
to product lines and opportunities to participate in new markets;
pricing trends for raw materials and finished goods and the impact
of pricing changes; anticipated capital expenditures and asset
sales; anticipated improvements and efficiencies in costs,
operations, sales, inventory management, sourcing and the supply
chain and the results thereof; the ability to make acquisitions and
the projected timing, results, benefits, costs, charges and
expenditures related to acquisitions, newly-created joint ventures,
headcount reductions and facility dispositions, shutdowns and
consolidations; the alignment of operations with demand; the
ability to operate profitably and generate cash in down markets;
the ability to maintain margins and capture and maintain market
share and to develop or take advantage of future opportunities, new
products and new markets; expectations for Company and customer
inventories, jobs and orders; expectations for the economy and
markets or improvements therein; expected benefits from
transformation plans, cost reduction efforts and other new
initiatives; expectations for increasing volatility or improving
and sustaining 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 effect of national,
regional and worldwide economic conditions generally and within
major product markets, including a prolonged or substantial
economic downturn; the outcome of negotiations surrounding the
United States debt and budget, which may be adverse due to its
impact on tax increases, governmental spending, and customer
confidence and spending, and the overall economy; the effect of
conditions in national and worldwide financial markets; 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; 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 other 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
industry 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, acts of war
or 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 exposure and the acceptance of our
products in these markets; the ability to improve and maintain
processes and business practices to keep pace with the economic,
competitive and technological environment; the outcome of adverse
claims experience with respect to workers' compensation, product
recalls or product liability, casualty events or other matters;
deviation of actual results from estimates and/or assumptions used
by the Company in the application of its significant accounting
policies; 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 Securities and Exchange Commission and
other governmental agencies as contemplated by the Dodd-Frank Wall
Street Reform and Consumer Protection Act of 2010; the effect of
changes to healthcare laws in the United States which may increase
our healthcare and other costs and negatively impact our operations
and financial results; 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 our Annual Report on Form 10-K for the
fiscal year ended May 31, 2013.
|
|
WORTHINGTON INDUSTRIES, INC. |
|
CONSOLIDATED STATEMENTS OF EARNINGS |
|
(In thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
May 31, |
|
|
May 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Net sales |
|
$ |
891,005 |
|
|
$ |
704,060 |
|
|
$ |
3,126,426 |
|
|
$ |
2,612,244 |
|
Cost of goods sold |
|
|
760,169 |
|
|
|
592,950 |
|
|
|
2,633,907 |
|
|
|
2,215,601 |
|
|
Gross
margin |
|
|
130,836 |
|
|
|
111,110 |
|
|
|
492,519 |
|
|
|
396,643 |
|
Selling, general and administrative expense |
|
|
74,781 |
|
|
|
70,580 |
|
|
|
300,396 |
|
|
|
258,324 |
|
Impairment of long-lived assets |
|
|
22,871 |
|
|
|
4,968 |
|
|
|
58,246 |
|
|
|
6,488 |
|
Restructuring and other expense (income) |
|
|
869 |
|
|
|
1,482 |
|
|
|
(2,912 |
) |
|
|
3,293 |
|
Joint venture transactions |
|
|
(12 |
) |
|
|
584 |
|
|
|
1,036 |
|
|
|
(604 |
) |
|
Operating income |
|
|
32,327 |
|
|
|
33,496 |
|
|
|
135,753 |
|
|
|
129,142 |
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Miscellaneous income |
|
|
3,066 |
|
|
|
388 |
|
|
|
16,963 |
|
|
|
1,452 |
|
|
Interest expense |
|
|
(7,977 |
) |
|
|
(6,167 |
) |
|
|
(26,671 |
) |
|
|
(23,918 |
) |
|
Equity in net income of unconsolidated affiliates |
|
|
22,233 |
|
|
|
21,044 |
|
|
|
91,456 |
|
|
|
94,624 |
|
|
Earnings before income taxes |
|
|
49,649 |
|
|
|
48,761 |
|
|
|
217,501 |
|
|
|
201,300 |
|
Income tax expense |
|
|
18,401 |
|
|
|
16,744 |
|
|
|
57,349 |
|
|
|
64,465 |
|
Net earnings |
|
|
31,248 |
|
|
|
32,017 |
|
|
|
160,152 |
|
|
|
136,835 |
|
Net earnings (loss) attributable to noncontrolling
interest |
|
|
(1,915 |
) |
|
|
(1,506 |
) |
|
|
8,852 |
|
|
|
393 |
|
Net earnings attributable to controlling interest |
|
$ |
33,163 |
|
|
$ |
33,523 |
|
|
$ |
151,300 |
|
|
$ |
136,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding |
|
|
67,980 |
|
|
|
70,201 |
|
|
|
68,944 |
|
|
|
69,301 |
|
Earnings per share attributable to controlling
interest |
|
$ |
0.49 |
|
|
$ |
0.48 |
|
|
$ |
2.19 |
|
|
$ |
1.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average common shares outstanding |
|
|
70,441 |
|
|
|
72,999 |
|
|
|
71,664 |
|
|
|
71,314 |
|
Earnings per share attributable to controlling
interest |
|
$ |
0.47 |
|
|
$ |
0.46 |
|
|
$ |
2.11 |
|
|
$ |
1.91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding at end of period |
|
|
67,408 |
|
|
|
69,752 |
|
|
|
67,408 |
|
|
|
69,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share |
|
$ |
0.15 |
|
|
$ |
- |
|
|
$ |
0.60 |
|
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES, INC. |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
|
|
|
|
|
|
May 31, |
|
May 31, |
|
|
2014 |
|
2013 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
190,079 |
|
$ |
51,385 |
|
Receivables, less allowances of $3,043 and $3,408 at
May 31, 2014 and May 31, 2013, respectively |
|
|
493,127 |
|
|
394,327 |
|
Inventories: |
|
|
|
|
|
|
|
|
Raw materials |
|
|
213,173 |
|
|
175,093 |
|
|
Work in process |
|
|
105,872 |
|
|
103,861 |
|
|
Finished products |
|
|
90,957 |
|
|
77,814 |
|
|
|
Total
inventories |
|
|
410,002 |
|
|
356,768 |
|
Income taxes receivable |
|
|
5,438 |
|
|
724 |
|
Assets held for sale |
|
|
32,235 |
|
|
3,040 |
|
Deferred income taxes |
|
|
24,272 |
|
|
21,928 |
|
Prepaid expenses and other current assets |
|
|
43,769 |
|
|
38,711 |
|
|
Total current assets |
|
|
1,198,922 |
|
|
866,883 |
|
|
|
|
|
|
|
Investments in unconsolidated affiliates |
|
|
179,113 |
|
|
246,125 |
Goodwill |
|
|
251,093 |
|
|
213,858 |
Other intangible assets, net of accumulated
amortization of $35,506 and $26,669 at May 31, 2014 and May 31,
2013, respectively |
|
|
145,993 |
|
|
147,144 |
Other assets |
|
|
22,399 |
|
|
17,417 |
Property, plant & equipment: |
|
|
|
|
|
|
|
Land |
|
|
15,260 |
|
|
26,253 |
|
Buildings and improvements |
|
|
213,848 |
|
|
205,017 |
|
Machinery and equipment |
|
|
848,889 |
|
|
798,467 |
|
Construction in progress |
|
|
32,135 |
|
|
22,899 |
|
|
Property, plant & equipment at cost |
|
|
1,110,132 |
|
|
1,052,636 |
|
|
Less: accumulated depreciation |
|
|
611,271 |
|
|
593,206 |
Property, plant and equipment, net |
|
|
498,861 |
|
|
459,430 |
Total assets |
|
$ |
2,296,381 |
|
$ |
1,950,857 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
|
$ |
333,744 |
|
$ |
222,696 |
|
Short-term borrowings |
|
|
10,362 |
|
|
113,728 |
|
Accrued compensation, contributions to employee benefit
plans |
|
|
|
|
|
|
|
and related taxes |
|
|
78,514 |
|
|
68,043 |
|
Dividends payable |
|
|
11,044 |
|
|
551 |
|
Other accrued items |
|
|
49,873 |
|
|
36,536 |
|
Income taxes payable |
|
|
4,953 |
|
|
6,268 |
|
Current maturities of long-term debt |
|
|
101,173 |
|
|
1,092 |
|
|
Total current liabilities |
|
|
589,663 |
|
|
448,914 |
|
|
|
|
|
|
|
Other liabilities |
|
|
76,426 |
|
|
70,882 |
Distributions in excess of investment in unconsolidated
affiliate |
|
|
59,287 |
|
|
63,187 |
Long-term debt |
|
|
554,790 |
|
|
406,236 |
Deferred income taxes |
|
|
71,333 |
|
|
89,401 |
|
|
Total liabilities |
|
|
1,351,499 |
|
|
1,078,620 |
|
|
|
|
|
|
|
Shareholders' equity - controlling interest |
|
|
850,812 |
|
|
830,822 |
Noncontrolling interest |
|
|
94,070 |
|
|
41,415 |
|
|
Total equity |
|
|
944,882 |
|
|
872,237 |
Total liabilities and equity |
|
$ |
2,296,381 |
|
$ |
1,950,857 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES, INC. |
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
May 31, |
|
|
May 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings |
|
$ |
31,248 |
|
|
$ |
32,017 |
|
|
$ |
160,152 |
|
|
$ |
136,835 |
|
Adjustments to reconcile net earnings to net cash
provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
19,967 |
|
|
|
18,333 |
|
|
|
79,730 |
|
|
|
66,469 |
|
|
Impairment of long-lived assets |
|
|
22,871 |
|
|
|
4,968 |
|
|
|
58,246 |
|
|
|
6,488 |
|
|
Provision for deferred income taxes |
|
|
(5,660 |
) |
|
|
(8,052 |
) |
|
|
(25,916 |
) |
|
|
1,798 |
|
|
Bad
debt expense |
|
|
462 |
|
|
|
208 |
|
|
|
32 |
|
|
|
783 |
|
|
Equity in net income of unconsolidated affiliates, net of
distributions |
|
|
(6,960 |
) |
|
|
8,308 |
|
|
|
(15,333 |
) |
|
|
(10,948 |
) |
|
Net
gain (loss) on sale of assets |
|
|
(352 |
) |
|
|
1,343 |
|
|
|
(11,212 |
) |
|
|
1,121 |
|
|
Stock-based compensation |
|
|
8,810 |
|
|
|
2,684 |
|
|
|
22,017 |
|
|
|
13,270 |
|
|
Excess tax benefits - stock-based compensation |
|
|
(1,586 |
) |
|
|
(1,728 |
) |
|
|
(8,880 |
) |
|
|
(5,183 |
) |
|
Gain
on previously held equity interest in TWB |
|
|
- |
|
|
|
- |
|
|
|
(11,000 |
) |
|
|
- |
|
Changes in assets and liabilities, net of impact of
acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Receivables |
|
|
(34,207 |
) |
|
|
(8,277 |
) |
|
|
(49,206 |
) |
|
|
18,801 |
|
|
Inventories |
|
|
21,573 |
|
|
|
34,372 |
|
|
|
(38,010 |
) |
|
|
77,115 |
|
|
Prepaid expenses and other current assets |
|
|
(7,057 |
) |
|
|
(763 |
) |
|
|
(2,921 |
) |
|
|
871 |
|
|
Other
assets |
|
|
(5,091 |
) |
|
|
1,501 |
|
|
|
(5,278 |
) |
|
|
4,636 |
|
|
Accounts payable and accrued expenses |
|
|
(38,503 |
) |
|
|
(12,612 |
) |
|
|
69,682 |
|
|
|
(47,483 |
) |
|
Other
liabilities |
|
|
2,924 |
|
|
|
4,992 |
|
|
|
6,943 |
|
|
|
8,404 |
|
Net cash provided by operating activities |
|
|
8,439 |
|
|
|
77,294 |
|
|
|
229,046 |
|
|
|
272,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment in property, plant and equipment |
|
|
(19,181 |
) |
|
|
(10,186 |
) |
|
|
(71,338 |
) |
|
|
(44,588 |
) |
|
Acquisitions, net of cash acquired |
|
|
(29,151 |
) |
|
|
(113,115 |
) |
|
|
(11,517 |
) |
|
|
(175,225 |
) |
|
Distributions from unconsolidated affiliates |
|
|
- |
|
|
|
863 |
|
|
|
9,223 |
|
|
|
863 |
|
|
Proceeds from sale of assets and insurance |
|
|
3,125 |
|
|
|
747 |
|
|
|
27,438 |
|
|
|
16,974 |
|
Net cash used by investing activities |
|
|
(45,207 |
) |
|
|
(121,691 |
) |
|
|
(46,194 |
) |
|
|
(201,976 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
proceeds from (repayments of) short-term borrowings |
|
|
(24,994 |
) |
|
|
83,140 |
|
|
|
(103,618 |
) |
|
|
(168,446 |
) |
|
Proceeds from long-term debt |
|
|
247,566 |
|
|
|
- |
|
|
|
247,566 |
|
|
|
150,000 |
|
|
Principal payments on long-term debt |
|
|
(364 |
) |
|
|
(310 |
) |
|
|
(1,219 |
) |
|
|
(1,480 |
) |
|
Proceeds from (payments for) issuance of common shares |
|
|
(628 |
) |
|
|
4,954 |
|
|
|
4,618 |
|
|
|
37,914 |
|
|
Excess tax benefits - stock-based compensation |
|
|
1,586 |
|
|
|
1,728 |
|
|
|
8,880 |
|
|
|
5,183 |
|
|
Payments to noncontrolling interest |
|
|
(1,819 |
) |
|
|
(672 |
) |
|
|
(40,969 |
) |
|
|
(9,254 |
) |
|
Repurchase of common shares |
|
|
(37,140 |
) |
|
|
(30,417 |
) |
|
|
(128,218 |
) |
|
|
(30,417 |
) |
|
Dividends paid |
|
|
(10,246 |
) |
|
|
- |
|
|
|
(31,198 |
) |
|
|
(44,144 |
) |
Net cash provided (used) by financing activities |
|
|
173,961 |
|
|
|
58,423 |
|
|
|
(44,158 |
) |
|
|
(60,644 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents |
|
|
137,193 |
|
|
|
14,026 |
|
|
|
138,694 |
|
|
|
10,357 |
|
Cash and cash equivalents at beginning of period |
|
|
52,886 |
|
|
|
37,359 |
|
|
|
51,385 |
|
|
|
41,028 |
|
Cash and cash equivalents at end of period |
|
$ |
190,079 |
|
|
$ |
51,385 |
|
|
$ |
190,079 |
|
|
$ |
51,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORTHINGTON INDUSTRIES, INC. |
|
SUPPLEMENTAL DATA |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
This supplemental information is provided to assist in
the analysis of the results of operations. |
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
May 31, |
|
|
May 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Volume: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing (tons) |
|
|
949 |
|
|
|
703 |
|
|
|
3,282 |
|
|
|
2,659 |
|
|
Pressure Cylinders (units) |
|
|
22,908 |
|
|
|
23,363 |
|
|
|
84,564 |
|
|
|
82,189 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
563,515 |
|
|
$ |
379,632 |
|
|
$ |
1,936,073 |
|
|
$ |
1,462,630 |
|
|
Pressure Cylinders |
|
|
264,184 |
|
|
|
252,328 |
|
|
|
928,396 |
|
|
|
859,264 |
|
|
Engineered Cabs |
|
|
52,714 |
|
|
|
55,075 |
|
|
|
200,528 |
|
|
|
226,002 |
|
|
Other |
|
|
10,592 |
|
|
|
17,025 |
|
|
|
61,429 |
|
|
|
64,348 |
|
|
|
Total
net sales |
|
$ |
891,005 |
|
|
$ |
704,060 |
|
|
$ |
3,126,426 |
|
|
$ |
2,612,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Material cost: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
412,183 |
|
|
$ |
267,913 |
|
|
$ |
1,392,009 |
|
|
$ |
1,044,802 |
|
|
Pressure Cylinders |
|
|
124,442 |
|
|
|
123,854 |
|
|
|
426,856 |
|
|
|
409,101 |
|
|
Engineered Cabs |
|
|
24,639 |
|
|
|
26,912 |
|
|
|
90,854 |
|
|
|
112,769 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
33,755 |
|
|
$ |
29,483 |
|
|
$ |
129,669 |
|
|
$ |
110,094 |
|
|
Pressure Cylinders |
|
|
30,000 |
|
|
|
31,366 |
|
|
|
125,984 |
|
|
|
106,947 |
|
|
Engineered Cabs |
|
|
7,995 |
|
|
|
6,878 |
|
|
|
30,620 |
|
|
|
27,448 |
|
|
Other |
|
|
3,031 |
|
|
|
2,853 |
|
|
|
14,123 |
|
|
|
13,835 |
|
|
|
Total
selling, general and administrative expense |
|
$ |
74,781 |
|
|
$ |
70,580 |
|
|
$ |
300,396 |
|
|
$ |
258,324 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
33,312 |
|
|
$ |
19,990 |
|
|
$ |
119,025 |
|
|
$ |
68,156 |
|
|
Pressure Cylinders |
|
|
5,997 |
|
|
|
16,402 |
|
|
|
55,004 |
|
|
|
66,367 |
|
|
Engineered Cabs |
|
|
(4,232 |
) |
|
|
(1,209 |
) |
|
|
(26,516 |
) |
|
|
4,158 |
|
|
Other |
|
|
(2,750 |
) |
|
|
(1,687 |
) |
|
|
(11,760 |
) |
|
|
(9,539 |
) |
|
|
Total
operating income |
|
$ |
32,327 |
|
|
$ |
33,496 |
|
|
$ |
135,753 |
|
|
$ |
129,142 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following provides detail of impairment of
long-lived assets, restructuring and other expense (income), and
joint venture transactions included in operating income by segment
presented above. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Twelve Months Ended |
|
|
|
May 31, |
|
|
May 31, |
|
|
|
2014 |
|
|
2013 |
|
|
2014 |
|
|
2013 |
|
Impairment of long-lived assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
2,500 |
|
|
$ |
- |
|
|
$ |
7,141 |
|
|
$ |
- |
|
|
Pressure Cylinders |
|
|
20,371 |
|
|
|
4,968 |
|
|
|
32,005 |
|
|
|
6,488 |
|
|
Engineered Cabs |
|
|
- |
|
|
|
- |
|
|
|
19,100 |
|
|
|
- |
|
|
Other |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
Total
impairment of long-lived assets |
|
$ |
22,871 |
|
|
$ |
4,968 |
|
|
$ |
58,246 |
|
|
$ |
6,488 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other expense (income): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
(3,382 |
) |
|
$ |
- |
|
|
Pressure Cylinders |
|
|
289 |
|
|
|
2,482 |
|
|
|
(745 |
) |
|
|
2,665 |
|
|
Engineered Cabs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other |
|
|
580 |
|
|
|
(1,000 |
) |
|
|
1,215 |
|
|
|
628 |
|
|
|
Total
restructuring and other expense (income) |
|
$ |
869 |
|
|
$ |
1,482 |
|
|
$ |
(2,912 |
) |
|
$ |
3,293 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Joint venture transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Processing |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
Pressure Cylinders |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Engineered Cabs |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
Other |
|
|
(12 |
) |
|
|
584 |
|
|
|
1,036 |
|
|
|
(604 |
) |
|
|
Total
joint venture transactions |
|
$ |
(12 |
) |
|
$ |
584 |
|
|
$ |
1,036 |
|
|
$ |
(604 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACTS: Cathy M. Lyttle VP, Corporate Communications and
Investor Relations Phone: (614) 438-3077 E-mail: Email Contact
Sonya L. Higginbotham Director, Corporate Communications Phone:
(614) 438-7391 E-mail: Email Contact 200 Old Wilson Bridge Rd.
Columbus, Ohio 43085 WorthingtonIndustries.com
Worthington Enterprises (NYSE:WOR)
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