Worthington Industries, Inc. (NYSE:WOR) today reported net sales of
$871.3 million and net earnings of $39.4 million, or $0.62 per
diluted share, for its fiscal 2018 second quarter ended November
30, 2017. Net earnings in the quarter included pre-tax
impairment charges of $8.3 million and a net pre-tax restructuring
gain of $9.7 million, which combined to increase earnings per
diluted share by $0.01. Results for the current quarter also
included a charge of $3.6 million within equity income to reflect a
new cost-sharing agreement at the Worthington Armstrong Venture
(WAVE) joint venture, which required an adjustment for the period
covering January 1, 2017 to August 31, 2017. The after-tax
impact of this item reduced earnings per diluted share by $0.04 in
the quarter. In the second quarter of fiscal 2017, the
Company reported net sales of $727.8 million and net earnings of
$46.6 million, or $0.72 per diluted share. Net earnings in
the second quarter of fiscal 2017 included pre-tax restructuring
charges totaling $3.3 million, which reduced earnings per diluted
share by $0.03.
Financial highlights for the current and comparative periods are
as follows:
(U.S. dollars in millions, except per share amounts) |
|
|
2Q 2018 |
|
1Q 2018 |
|
2Q 2017 |
|
6M 2018 |
|
6M 2017 |
Net sales |
$ |
871.3 |
|
$ |
848.2 |
|
$ |
727.8 |
|
$ |
1,719.5 |
|
$ |
1,465.3 |
Operating income |
|
52.1 |
|
|
42.2 |
|
|
43.0 |
|
|
94.3 |
|
|
107.9 |
Equity income |
|
16.4 |
|
|
27.3 |
|
|
27.1 |
|
|
43.8 |
|
|
61.7 |
Net earnings |
|
39.4 |
|
|
45.5 |
|
|
46.6 |
|
|
84.9 |
|
|
112.1 |
Earnings per diluted
share |
$ |
0.62 |
|
$ |
0.70 |
|
$ |
0.72 |
|
$ |
1.33 |
|
$ |
1.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
“We had the second best, second quarter results in our history,”
said John McConnell, Chairman and CEO of Worthington
Industries. “We saw improvement in our Pressure Cylinders
segment, with especially strong results in consumer product volumes
driven by our 14 and 16 oz. camping cylinders and solid earnings
from our Amtrol acquisition. Lower toll volumes in Steel
Processing and lower equity income from our joint ventures led to a
decline from the year ago quarter. We also had a charge at
WAVE for parent company allocations.” McConnell added, “All
in all, most of the markets we serve were steady.”
Consolidated Quarterly Results
Net sales for the second quarter of fiscal 2018
were $871.3 million, up 20% over the comparable quarter in the
prior year, when net sales were $727.8 million. The increase was
driven by contributions from the June 2, 2017 acquisition of
Amtrol, higher overall volumes in Pressure Cylinders, and higher
average direct selling prices in Steel
Processing.
Gross margin increased $17.3 million over the prior year quarter to
$140.1 million on contributions from the Amtrol acquisition and
higher overall volumes in Pressure Cylinders, partially offset by
lower direct spreads in Steel Processing.
Operating income for the current quarter was
$52.1 million, an increase of $9.0 million over the prior year
quarter. The increase was driven by higher gross margin and
lower combined impairment and restructuring charges, partially
offset by higher SG&A expense, up $12.9 million, due primarily
to the Amtrol acquisition.
Interest expense was $10.0 million for the
current quarter, compared to $7.7 million in the prior year
quarter. The increase was due primarily to the July 2017
issuance of $200.0 million of 4.3% senior unsecured notes due
August 1, 2032.
Equity income from unconsolidated joint ventures
decreased $10.7 million from the prior year quarter to $16.4
million on lower contributions from WAVE, ClarkDietrich and
ArtiFlex. WAVE’s contribution to equity income was $5.0
million lower than the prior year quarter due primarily to an
increase in allocated costs resulting from a new cost-sharing
agreement between the joint venture and its partners, which
required an adjustment of $3.6 million to equity income for the
period covering January 1, 2017 to August 31, 2017. The
Company’s portion of allocated costs for the period covering the
current quarter were approximately $1.3 million, but this run rate
is expected to decline 40 to 50% once the sale of the international
business closes in 2018. The majority of the increase in
allocated costs were from the joint venture partner and therefore
are not offset elsewhere in the Company’s results.
ClarkDietrich’s contribution to equity income was $3.9 million
lower than the prior year quarter as higher steel prices compressed
margins. ArtiFlex’s equity income was $1.3 million below the prior
year quarter, primarily due to a decline in its offload business.
The Company received cash distributions of $19.4 million from
unconsolidated joint ventures during the quarter for a total of
$38.9 million year-to-date for fiscal 2018, a cash conversion rate
of 89% on equity income.
Income tax expense was $18.2 million in the
current quarter compared to $13.5 million in the prior year
quarter. The increase was due primarily to favorable discrete
tax adjustments booked in the prior year quarter. Tax expense in
the current quarter reflects an estimated annual effective rate of
30.0% compared to 28.5% for the prior year quarter.
Balance Sheet
At quarter-end, total debt was $780.7 million,
up $0.1 million from August 31, 2017. The Company had $122.2
million of cash at quarter-end.
Quarterly Segment Results
Steel Processing’s net sales totaled $538.4
million, up 6%, or $29.6 million, over the comparable prior year
quarter driven by higher average direct selling prices, partially
offset by lower tolling volume due primarily to declines at certain
consolidated joint ventures. Operating income of $41.1
million was $5.7 million higher than the prior year quarter driven
by a net gain of $10.6 million related to the sale of the legacy
real estate of the Company’s former stainless steel business, PSM,
partially offset by lower direct spreads and lower tolling
volume. Inventory holding gains were negligible in both the
current and prior year quarters. The mix of direct versus
toll tons processed was 57% to 43% in the current quarter, compared
to 49% to 51% in the prior year quarter.
Pressure Cylinders’ net sales totaled $300.9
million, up 55%, or $106.2 million, over the comparable prior year
quarter due to contributions from the Amtrol acquisition and higher
volumes across the legacy consumer and industrial products
businesses and in the oil & gas equipment business.
Operating income of $24.7 million was $13.4 million higher than the
prior year quarter driven by improvements in the legacy consumer
and industrial products businesses and contributions from the
Amtrol acquisition. Improvements in the oil & gas
equipment business were largely offset by a decline in the
alternative fuels business.
Engineered Cabs’ net sales totaled $30.4
million, up $7.9 million, or 35%, over the prior year quarter on
higher volume. The operating loss of $1.6 million was $1.8
million less than the prior year quarter due to the favorable
impact of higher volume.
The “Other” category includes the energy
innovations business, as well as non-allocated corporate
expenses. Net sales in the “Other” category were $1.6
million, a decrease of $0.2 million from the prior year quarter on
lower volume in the energy innovations business. The
operating loss of $12.2 million for the quarter was driven by an
impairment charge of $7.3 million in the energy innovations
business related to its goodwill and intangible assets, and an
increase in non-allocated corporate expenses.
Recent Business
Developments
- On June 2, 2017, the Company acquired Amtrol, a leading
manufacturer of pressure cylinders and water system tanks with
operations in the U.S. and Europe. The total purchase price
was $291.9 million after adjusting for final working capital.
The acquisition was funded primarily with cash on hand. The
net assets became part of the Company’s Pressure Cylinders
operating segment at closing, with the well water and expansion
tank operations aligning under the consumer product business and
the refrigerant, liquid propane, and industrial and specialty gas
operations aligning under the industrial products business.
- On July 28, 2017, the Company completed a public offering of
$200.0 million aggregate principal amount of senior unsecured
notes. The notes bear interest at a rate of 4.3% and mature
on August 1, 2032.
- On November 20, 2017, the Company announced that its WAVE joint
venture, had agreed to sell its business and operations in Europe,
the Middle East, Africa and Asia, to Knauf Group, a family-owned
manufacturer of building materials headquartered in Germany.
Worthington expects to realize proceeds of approximately $45
million for its 50% share of the WAVE operations being sold.
The transaction is subject to regulatory approvals and other
customary closing conditions and is anticipated to close in the
middle of calendar 2018.
- During the second fiscal quarter, the Company repurchased a
total of 1,500,000 common shares for $67.4 million at an
average price of $44.97.
Outlook
“The Company is performing well with strong
volumes from the heavy truck and agriculture markets, and
improvements in Pressure Cylinders, where we are seeing strong
consumer product volumes and increasing demand in the oil and gas
business,” McConnell said. “The repositioning of Engineered
Cabs to attract new customers is resulting in increasing sales and
we anticipate WAVE to continue to deliver excellent results as it
focuses on its North America growth strategy with the pending sale
of the international business.”
Conference Call
Worthington will review fiscal 2018 second
quarter results during its quarterly conference call on December
19, 2017 at 2:30 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 is a leading global
diversified metals manufacturing company with 2017 fiscal year
sales of $3.0 billion. Headquartered in Columbus, Ohio,
Worthington is North America’s premier value-added steel processor
providing customers with wide ranging capabilities, products and
services for a variety of markets including automotive,
construction and agriculture; a global leader in manufacturing
pressure cylinders for propane, refrigerant and industrial gases
and for cryogenic applications, water well tanks for commercial and
residential uses, CNG and LNG storage, transportation and
alternative fuel tanks, oil & gas equipment, and consumer
products for camping, grilling, hand torch solutions and helium
balloon kits; and a manufacturer of operator cabs for heavy mobile
industrial equipment; laser welded blanks for light weighting
applications; automotive racking solutions; and through
unconsolidated joint ventures, complete ceiling grid solutions;
automotive tooling and stampings; and steel framing for commercial
construction. Worthington employs approximately 11,000
people and operates 85 facilities in 11 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 the basis for an unwavering commitment to
the customer, supplier, and shareholder, and 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,
growth potential, forward momentum, performance, competitive
position, sales, volumes, cash flows, earnings, balance sheet
strengths, debt, financial condition or other financial measures;
pricing trends for raw materials and finished goods and the impact
of pricing changes; 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 and the ability to improve performance and competitive
position at our 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 successfully integrate
AMTROL and the expected benefits, costs and results from the
acquisition of AMTROL; 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 anticipated impact of the pending sale of WAVE
international; projected capacity and 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, 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 effect of
national, regional and global economic conditions generally and
within major product markets, including a recurrent slowing
economy; the effect of conditions in national and worldwide
financial markets; lower oil prices as a factor in demand for
products; product demand and pricing; changes in product mix,
product substitution and market acceptance of our 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, oil and gas, and other industries
in which we participate; 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 we do
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; the successful completion of the single,
integrated sale of the Armstrong World Industries international
business and WAVE international; capacity levels and efficiencies,
within facilities, within major product markets and within the
industries 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, 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 our products in global markets; the ability to
improve and maintain processes and business practices to keep pace
with the economic, competitive and technological environment; the
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 us in the application of our significant
accounting policies; level of imports and import prices in our
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
healthcare laws in the United States and potential changes for such
laws which may increase our healthcare and other costs and
negatively impact our operations and financial results; the impact
of U.S. tax reform legislation; cyber security risks; 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,
2017.
WORTHINGTON INDUSTRIES, INC. |
CONSOLIDATED STATEMENTS OF
EARNINGS |
(In thousands, except per share
amounts) |
|
|
Three Months Ended November
30, |
|
Six Months Ended November
30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Net sales |
$ |
871,266 |
|
|
$ |
727,780 |
|
|
$ |
1,719,503 |
|
|
$ |
1,465,329 |
|
Cost of goods sold |
|
731,187 |
|
|
|
604,977 |
|
|
|
1,446,646 |
|
|
|
1,195,244 |
|
Gross
margin |
|
140,079 |
|
|
|
122,803 |
|
|
|
272,857 |
|
|
|
270,085 |
|
Selling, general and
administrative expense |
|
89,425 |
|
|
|
76,487 |
|
|
|
177,674 |
|
|
|
157,543 |
|
Impairment of goodwill
and long-lived assets |
|
8,289 |
|
|
|
- |
|
|
|
8,289 |
|
|
|
- |
|
Restructuring and other
expense (income), net |
|
(9,694 |
) |
|
|
3,272 |
|
|
|
(7,390 |
) |
|
|
4,600 |
|
Operating
income |
|
52,059 |
|
|
|
43,044 |
|
|
|
94,284 |
|
|
|
107,942 |
|
Other income
(expense): |
|
|
|
|
|
|
|
Miscellaneous income, net |
|
1,321 |
|
|
|
872 |
|
|
|
1,669 |
|
|
|
1,735 |
|
Interest
expense |
|
(10,038 |
) |
|
|
(7,658 |
) |
|
|
(18,845 |
) |
|
|
(15,528 |
) |
Equity in
net income of unconsolidated affiliates |
|
16,445 |
|
|
|
27,124 |
|
|
|
43,751 |
|
|
|
61,668 |
|
Earnings
before income taxes |
|
59,787 |
|
|
|
63,382 |
|
|
|
120,859 |
|
|
|
155,817 |
|
Income tax expense |
|
18,165 |
|
|
|
13,515 |
|
|
|
31,163 |
|
|
|
37,414 |
|
Net earnings |
|
41,622 |
|
|
|
49,867 |
|
|
|
89,696 |
|
|
|
118,403 |
|
Net earnings
attributable to noncontrolling interests |
|
2,219 |
|
|
|
3,302 |
|
|
|
4,759 |
|
|
|
6,271 |
|
Net earnings
attributable to controlling interest |
$ |
39,403 |
|
|
$ |
46,565 |
|
|
$ |
84,937 |
|
|
$ |
112,132 |
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
|
|
|
|
Average common shares
outstanding |
|
61,503 |
|
|
|
62,348 |
|
|
|
61,976 |
|
|
|
62,115 |
|
Earnings per
share attributable to controlling interest |
$ |
0.64 |
|
|
$ |
0.75 |
|
|
$ |
1.37 |
|
|
$ |
1.81 |
|
|
|
|
|
|
|
|
|
Diluted |
|
|
|
|
|
|
|
Average common shares
outstanding |
|
63,468 |
|
|
|
64,725 |
|
|
|
64,044 |
|
|
|
64,599 |
|
Earnings per
share attributable to controlling interest |
$ |
0.62 |
|
|
$ |
0.72 |
|
|
$ |
1.33 |
|
|
$ |
1.74 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding at end of period |
|
60,755 |
|
|
|
62,562 |
|
|
|
60,755 |
|
|
|
62,562 |
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share |
$ |
0.21 |
|
|
$ |
0.20 |
|
|
$ |
0.42 |
|
|
$ |
0.40 |
|
WORTHINGTON INDUSTRIES, INC. |
CONSOLIDATED BALANCE SHEETS |
(In thousands) |
|
|
November 30, |
|
May 31, |
|
2017 |
|
2017 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and
cash equivalents |
$ |
122,214 |
|
$ |
278,081 |
Receivables, less allowances of $3,127 and $3,444 at November 30,
2017 |
|
|
|
and May
31, 2017, respectively |
|
507,704 |
|
|
486,730 |
Inventories: |
|
|
|
Raw
materials |
|
228,568 |
|
|
185,001 |
Work in
process |
|
108,260 |
|
|
95,630 |
Finished
products |
|
79,180 |
|
|
73,303 |
Total
inventories |
|
416,008 |
|
|
353,934 |
Income
taxes receivable |
|
10,858 |
|
|
7,164 |
Assets
held for sale |
|
3,740 |
|
|
9,654 |
Prepaid
expenses and other current assets |
|
51,204 |
|
|
55,406 |
Total
current assets |
|
1,111,728 |
|
|
1,190,969 |
Investments in
unconsolidated affiliates |
|
213,814 |
|
|
208,591 |
Goodwill |
|
350,117 |
|
|
247,673 |
Other intangible
assets, net of accumulated amortization of $71,580 and |
|
|
|
$63,134
at November 30, 2017 and May 31, 2017, respectively |
|
239,934 |
|
|
82,781 |
Other assets |
|
28,369 |
|
|
24,841 |
Property, plant and
equipment: |
|
|
|
Land |
|
27,381 |
|
|
22,077 |
Buildings
and improvements |
|
311,685 |
|
|
297,951 |
Machinery
and equipment |
|
1,035,787 |
|
|
961,542 |
Construction in progress |
|
34,015 |
|
|
27,616 |
Total
property, plant and equipment |
|
1,408,868 |
|
|
1,309,186 |
Less:
accumulated depreciation |
|
781,117 |
|
|
738,697 |
Total
property, plant and equipment, net |
|
627,751 |
|
|
570,489 |
Total
assets |
$ |
2,571,713 |
|
$ |
2,325,344 |
|
|
|
|
Liabilities and
equity |
|
|
|
Current
liabilities: |
|
|
|
Accounts
payable |
$ |
363,032 |
|
$ |
368,071 |
Short-term borrowings |
|
723 |
|
|
123 |
Accrued
compensation, contributions to employee benefit plans and |
|
|
|
related
taxes |
|
74,404 |
|
|
86,201 |
Dividends
payable |
|
13,815 |
|
|
13,698 |
Other
accrued items |
|
59,255 |
|
|
41,551 |
Income
taxes payable |
|
2,027 |
|
|
4,448 |
Current
maturities of long-term debt |
|
13,193 |
|
|
6,691 |
Total
current liabilities |
|
526,449 |
|
|
520,783 |
Other liabilities |
|
68,672 |
|
|
61,498 |
Distributions in excess
of investment in unconsolidated affiliate |
|
61,085 |
|
|
63,038 |
Long-term debt |
|
766,737 |
|
|
571,796 |
Deferred income taxes,
net |
|
105,987 |
|
|
34,300 |
Total
liabilities |
|
1,528,930 |
|
|
1,251,415 |
Shareholders' equity -
controlling interest |
|
919,287 |
|
|
951,635 |
Noncontrolling
interests |
|
123,496 |
|
|
122,294 |
Total
equity |
|
1,042,783 |
|
|
1,073,929 |
Total
liabilities and equity |
$ |
2,571,713 |
|
$ |
2,325,344 |
WORTHINGTON INDUSTRIES, INC. |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(In thousands) |
|
|
Three Months Ended November
30, |
|
Six Months Ended November
30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Operating
activities: |
|
|
|
|
|
|
|
Net earnings |
$ |
41,622 |
|
|
$ |
49,867 |
|
|
$ |
89,696 |
|
|
$ |
118,403 |
|
Adjustments to
reconcile net earnings to net cash provided by operating
activities: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
26,283 |
|
|
|
21,645 |
|
|
|
51,648 |
|
|
|
43,476 |
|
Impairment of goodwill and long-lived assets |
|
8,289 |
|
|
|
- |
|
|
|
8,289 |
|
|
|
- |
|
Provision
for (benefit from) deferred income taxes |
|
(583 |
) |
|
|
2,316 |
|
|
|
7,351 |
|
|
|
2,336 |
|
Bad debt
(income) expense |
|
41 |
|
|
|
232 |
|
|
|
(21 |
) |
|
|
151 |
|
Equity in
net income of unconsolidated affiliates, net of distributions |
|
2,952 |
|
|
|
(2,824 |
) |
|
|
(4,803 |
) |
|
|
1,074 |
|
Net
(gain) loss on assets |
|
(10,680 |
) |
|
|
(2,912 |
) |
|
|
(9,255 |
) |
|
|
1,484 |
|
Stock-based compensation |
|
3,787 |
|
|
|
3,824 |
|
|
|
7,194 |
|
|
|
6,960 |
|
Changes in assets and
liabilities, net of impact of acquisitions: |
|
|
|
|
|
|
|
Receivables |
|
(46,097 |
) |
|
|
(7,156 |
) |
|
|
16,581 |
|
|
|
9,798 |
|
Inventories |
|
9,871 |
|
|
|
31,875 |
|
|
|
(24,825 |
) |
|
|
(18,523 |
) |
Prepaid
expenses and other current assets |
|
3,622 |
|
|
|
(1,737 |
) |
|
|
4,765 |
|
|
|
5,425 |
|
Other
assets |
|
(626 |
) |
|
|
1,165 |
|
|
|
(976 |
) |
|
|
2,411 |
|
Accounts
payable and accrued expenses |
|
(21,577 |
) |
|
|
(65,946 |
) |
|
|
(48,368 |
) |
|
|
(22,885 |
) |
Other
liabilities |
|
2,478 |
|
|
|
950 |
|
|
|
5,461 |
|
|
|
2,094 |
|
Net cash
provided by operating activities |
|
19,382 |
|
|
|
31,299 |
|
|
|
102,737 |
|
|
|
152,204 |
|
|
|
|
|
|
|
|
|
Investing
activities: |
|
|
|
|
|
|
|
Investment in property, plant and equipment |
|
(23,678 |
) |
|
|
(14,730 |
) |
|
|
(41,691 |
) |
|
|
(31,046 |
) |
Acquisitions, net of cash acquired |
|
(523 |
) |
|
|
- |
|
|
|
(285,028 |
) |
|
|
- |
|
Proceeds
from sale of assets |
|
16,312 |
|
|
|
799 |
|
|
|
16,739 |
|
|
|
956 |
|
Net cash used
by investing activities |
|
(7,889 |
) |
|
|
(13,931 |
) |
|
|
(309,980 |
) |
|
|
(30,090 |
) |
|
|
|
|
|
|
|
|
Financing
activities: |
|
|
|
|
|
|
|
Net
proceeds from (repayments of) short-term borrowings |
|
302 |
|
|
|
(1,037 |
) |
|
|
600 |
|
|
|
(2,154 |
) |
Proceeds
from long-term debt, net of issuance costs |
|
(594 |
) |
|
|
- |
|
|
|
197,685 |
|
|
|
- |
|
Principal
payments on long-term debt |
|
(220 |
) |
|
|
(218 |
) |
|
|
(439 |
) |
|
|
(437 |
) |
Proceeds
from issuance of common shares, net of tax withholdings |
|
(722 |
) |
|
|
(2,849 |
) |
|
|
(3,996 |
) |
|
|
2,972 |
|
Payments
to noncontrolling interests |
|
(3,196 |
) |
|
|
(6,781 |
) |
|
|
(3,916 |
) |
|
|
(6,781 |
) |
Repurchase of common shares |
|
(67,448 |
) |
|
|
- |
|
|
|
(112,524 |
) |
|
|
- |
|
Dividends
paid |
|
(13,256 |
) |
|
|
(12,828 |
) |
|
|
(26,034 |
) |
|
|
(24,722 |
) |
Net cash
provided (used) by financing activities |
|
(85,134 |
) |
|
|
(23,713 |
) |
|
|
51,376 |
|
|
|
(31,122 |
) |
|
|
|
|
|
|
|
|
Increase (decrease) in
cash and cash equivalents |
|
(73,641 |
) |
|
|
(6,345 |
) |
|
|
(155,867 |
) |
|
|
90,992 |
|
Cash and cash
equivalents at beginning of period |
|
195,855 |
|
|
|
181,525 |
|
|
|
278,081 |
|
|
|
84,188 |
|
Cash and cash
equivalents at end of period |
$ |
122,214 |
|
|
$ |
175,180 |
|
|
$ |
122,214 |
|
|
$ |
175,180 |
|
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 November
30, |
|
Six Months Ended November
30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Volume: |
|
|
|
|
|
|
|
Steel
Processing (tons) |
|
921,961 |
|
|
|
1,020,147 |
|
|
|
1,890,291 |
|
|
|
2,051,645 |
|
Pressure
Cylinders (units) |
|
23,321,823 |
|
|
|
16,308,448 |
|
|
|
43,763,099 |
|
|
|
35,224,326 |
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
Steel
Processing |
$ |
538,390 |
|
|
$ |
508,806 |
|
|
$ |
1,081,881 |
|
|
$ |
1,014,480 |
|
Pressure
Cylinders |
|
300,862 |
|
|
|
194,661 |
|
|
|
570,673 |
|
|
|
399,870 |
|
Engineered Cabs |
|
30,404 |
|
|
|
22,463 |
|
|
|
62,350 |
|
|
|
48,044 |
|
Other |
|
1,610 |
|
|
|
1,850 |
|
|
|
4,599 |
|
|
|
2,935 |
|
Total net
sales |
$ |
871,266 |
|
|
$ |
727,780 |
|
|
$ |
1,719,503 |
|
|
$ |
1,465,329 |
|
|
|
|
|
|
|
|
|
Material cost: |
|
|
|
|
|
|
|
Steel
Processing |
$ |
380,328 |
|
|
$ |
338,988 |
|
|
$ |
759,548 |
|
|
$ |
651,703 |
|
Pressure
Cylinders |
|
129,981 |
|
|
|
76,302 |
|
|
|
250,612 |
|
|
|
159,230 |
|
Engineered Cabs |
|
14,934 |
|
|
|
10,173 |
|
|
|
29,151 |
|
|
|
21,420 |
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense: |
|
|
|
|
|
|
|
Steel
Processing |
$ |
33,543 |
|
|
$ |
35,806 |
|
|
$ |
70,071 |
|
|
$ |
72,688 |
|
Pressure
Cylinders |
|
46,312 |
|
|
|
35,530 |
|
|
|
91,780 |
|
|
|
72,520 |
|
Engineered Cabs |
|
4,233 |
|
|
|
3,669 |
|
|
|
8,502 |
|
|
|
7,620 |
|
Other |
|
5,337 |
|
|
|
1,482 |
|
|
|
7,321 |
|
|
|
4,715 |
|
Total
selling, general and administrative expense |
$ |
89,425 |
|
|
$ |
76,487 |
|
|
$ |
177,674 |
|
|
$ |
157,543 |
|
|
|
|
|
|
|
|
|
Operating income
(loss): |
|
|
|
|
|
|
|
Steel
Processing |
$ |
41,130 |
|
|
$ |
35,448 |
|
|
$ |
74,002 |
|
|
$ |
90,230 |
|
Pressure
Cylinders |
|
24,675 |
|
|
|
11,304 |
|
|
|
35,133 |
|
|
|
25,409 |
|
Engineered Cabs |
|
(1,587 |
) |
|
|
(3,381 |
) |
|
|
(1,948 |
) |
|
|
(5,224 |
) |
Other |
|
(12,159 |
) |
|
|
(327 |
) |
|
|
(12,903 |
) |
|
|
(2,473 |
) |
Total
operating income |
$ |
52,059 |
|
|
$ |
43,044 |
|
|
$ |
94,284 |
|
|
$ |
107,942 |
|
|
|
|
|
|
|
|
|
Equity income (loss) by
unconsolidated affiliate: |
|
|
|
|
|
|
|
WAVE |
$ |
13,729 |
|
|
$ |
18,720 |
|
|
$ |
35,957 |
|
|
$ |
39,466 |
|
ClarkDietrich |
|
374 |
|
|
|
4,262 |
|
|
|
1,081 |
|
|
|
12,929 |
|
Serviacero |
|
1,514 |
|
|
|
2,039 |
|
|
|
4,488 |
|
|
|
3,991 |
|
ArtiFlex |
|
865 |
|
|
|
2,134 |
|
|
|
2,348 |
|
|
|
5,027 |
|
Other |
|
(37 |
) |
|
|
(31 |
) |
|
|
(123 |
) |
|
|
255 |
|
Total
equity income |
$ |
16,445 |
|
|
$ |
27,124 |
|
|
$ |
43,751 |
|
|
$ |
61,668 |
|
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 November
30, |
|
Six Months Ended November
30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Volume (units): |
|
|
|
|
|
|
|
Consumer
products |
|
19,498,496 |
|
|
|
14,330,955 |
|
|
|
35,852,923 |
|
|
|
30,477,672 |
|
Industrial products |
|
3,707,829 |
|
|
|
1,842,869 |
|
|
|
7,684,119 |
|
|
|
4,475,212 |
|
Alternative fuels |
|
114,779 |
|
|
|
134,190 |
|
|
|
224,635 |
|
|
|
270,252 |
|
Oil &
gas equipment |
|
719 |
|
|
|
434 |
|
|
|
1,422 |
|
|
|
1,190 |
|
Total
Pressure Cylinders |
|
23,321,823 |
|
|
|
16,308,448 |
|
|
|
43,763,099 |
|
|
|
35,224,326 |
|
|
|
|
|
|
|
|
|
Net sales: |
|
|
|
|
|
|
|
Consumer
products |
$ |
123,236 |
|
|
$ |
75,130 |
|
|
$ |
231,917 |
|
|
$ |
156,931 |
|
Industrial products |
|
126,421 |
|
|
|
79,173 |
|
|
|
239,435 |
|
|
|
158,358 |
|
Alternative fuels |
|
25,986 |
|
|
|
29,170 |
|
|
|
49,665 |
|
|
|
58,932 |
|
Oil &
gas equipment |
|
25,219 |
|
|
|
11,188 |
|
|
|
49,656 |
|
|
|
25,649 |
|
Total
Pressure Cylinders |
$ |
300,862 |
|
|
$ |
194,661 |
|
|
$ |
570,673 |
|
|
$ |
399,870 |
|
|
|
The
following provides detail of impairment of goodwill and long-lived
assets and restructuring and other expense (income), net included
in operating income by segment. |
|
|
Three Months Ended November
30, |
|
Six Months Ended November
30, |
|
|
2017 |
|
|
|
2016 |
|
|
|
2017 |
|
|
|
2016 |
|
Impairment of goodwill
and long-lived assets: |
|
|
|
|
|
|
|
Steel
Processing |
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
|
$ |
- |
|
Pressure
Cylinders |
|
964 |
|
|
|
- |
|
|
|
964 |
|
|
|
- |
|
Engineered Cabs |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Other |
|
7,325 |
|
|
|
- |
|
|
|
7,325 |
|
|
|
- |
|
Total
impairment of goodwill and long-lived assets |
$ |
8,289 |
|
|
$ |
- |
|
|
$ |
8,289 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
Restructuring and other
expense (income), net: |
|
|
|
|
|
|
|
Steel
Processing |
$ |
(10,335 |
) |
|
$ |
318 |
|
|
$ |
(10,056 |
) |
|
$ |
1,284 |
|
Pressure
Cylinders |
|
488 |
|
|
|
1,963 |
|
|
|
2,365 |
|
|
|
2,109 |
|
Engineered Cabs |
|
(82 |
) |
|
|
1,004 |
|
|
|
(78 |
) |
|
|
1,210 |
|
Other |
|
235 |
|
|
|
(13 |
) |
|
|
379 |
|
|
|
(3 |
) |
Total
restructuring and other expense (income), net |
$ |
(9,694 |
) |
|
$ |
3,272 |
|
|
$ |
(7,390 |
) |
|
$ |
4,600 |
|
Contacts:CATHY M. LYTTLEVP, CORPORATE COMMUNICATIONSAND INVESTOR RELATIONS614.438.3077 | cathy.lyttle@WorthingtonIndustries.comSONYA L. HIGGINBOTHAMDIRECTOR, CORPORATE COMMUNICATIONS614.438.7391 | sonya.higginbotham@worthingtonindustries.com
200 Old Wilson Bridge Rd. | Columbus, Ohio 43085WorthingtonIndustries.com
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