Worthington Industries, Inc. (NYSE:WOR) Q2 2021 Earnings Conference Call December 17, 2020 2:00 PM ET Company Participants Marcus Rogier - Treasurer & Investor Relations Officer Joe Hayek - Chief Financial Officer Andy Rose - President & Chief Executive Officer Conference Call Participants Seth Rosenfeld - Exane BNP Phil Gibbs - KeyBanc John Tumazos - John Tumazos Independent Operator Good afternoon and welcome to the Worthington Industries Second Quarter Fiscal 2021 Earnings Conference Call. All participan ...

[Part I. Financial Information](index=5&type=section&id=Part%20I%2E%20Financial%20Information) [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201%2E%20Financial%20Statements%20%28Unaudited%29) Unaudited financial statements for the quarter ended August 31, 2020, show a significant increase in net earnings to $618.7 million, primarily driven by a $796.1 million pre-tax gain on the investment in Nikola Corporation [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of August 31, 2020, total assets were $3.13 billion, a significant increase from $2.33 billion at May 31, 2020, primarily due to increased cash and a $287.6 million investment in Nikola Consolidated Balance Sheet Highlights (in thousands) | Account | August 31, 2020 | May 31, 2020 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $650,068 | $147,198 | | Investment in Nikola | $287,630 | $0 | | Total current assets | $1,766,457 | $983,179 | | Total assets | $3,131,053 | $2,331,515 | | **Liabilities & Equity** | | | | Total current liabilities | $542,184 | $388,238 | | Total liabilities | $1,601,153 | $1,365,082 | | Total equity | $1,529,900 | $966,433 | [Consolidated Statements of Earnings (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings%20%28Loss%29) For the three months ended August 31, 2020, the company reported net earnings attributable to controlling interest of $616.7 million, primarily due to a $796.1 million pre-tax gain on the Nikola investment, despite a decrease in net sales to $702.9 million Statement of Earnings Highlights (in thousands, except per share data) | Metric | Three Months Ended Aug 31, 2020 | Three Months Ended Aug 31, 2019 | | :--- | :--- | :--- | | Net sales | $702,909 | $855,859 | | Operating loss | $(30,121) | $(14,588) | | Gains on investment in Nikola | $796,141 | $0 | | Net earnings (loss) attributable to controlling interest | $616,675 | $(4,776) | | Diluted earnings (loss) per share | $11.22 | $(0.09) | - The company incurred **$49.5 million** in incremental expenses related to the Nikola gains, which contributed to the operating loss[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the three months ended August 31, 2020, net cash provided by operating activities was $117.4 million, with investing activities providing $455.0 million, primarily from Nikola share sales, leading to a $502.9 million increase in cash and cash equivalents Cash Flow Summary (in thousands) | Activity | Three Months Ended Aug 31, 2020 | Three Months Ended Aug 31, 2019 | | :--- | :--- | :--- | | Net cash provided by operating activities | $117,388 | $64,369 | | Net cash provided (used) by investing activities | $454,988 | $(12,998) | | Net cash used by financing activities | $(69,506) | $(98,151) | | **Increase (decrease) in cash** | **$502,870** | **$(46,780)** | - Investing activities were significantly impacted by **$487.9 million** in proceeds from the sale of Nikola shares[18](index=18&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=9&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) The notes detail a **$796.1 million** pre-tax gain from the Nikola investment, decreased sales across segments, and **$9.9 million** in impairment charges, with a subsequent sale of the cryogenic and hydrogen trailer business - The company recognized a **$796.1 million** pre-tax gain on its Nikola investment, comprising **$508.5 million** in realized gains and a **$287.6 million** unrealized mark-to-market gain, partially offset by **$49.5 million** in related incremental expenses[33](index=33&type=chunk) - Impairment charges of **$9.9 million** were recognized in Q1 FY2021, primarily related to the cryogenics business and the discontinuation of an alternative fuel cylinders manufacturing line[42](index=42&type=chunk)[44](index=44&type=chunk) - On October 13, 2020, the company sold its cryogenic and hydrogen trailer business for **$10 million**, expecting to generate a loss of approximately **$4 million**[105](index=105&type=chunk) Net Sales by Reportable Segment (in thousands) | Segment | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Steel Processing | $431,020 | $523,375 | | Pressure Cylinders | $270,904 | $304,396 | | Other | $985 | $28,088 | | **Total net sales** | **$702,909** | **$855,859** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the first quarter net earnings of $616.7 million primarily to the net pre-tax gain of $746.6 million from its Nikola investment, despite an 18% decline in net sales to $702.9 million [Results of Operations](index=28&type=section&id=Results%20of%20Operations) Consolidated net sales for Q1 FY2021 decreased by **$153.0 million** year-over-year due to lower selling prices, reduced volumes, and deconsolidation, while net earnings were significantly boosted by the **$796.1 million** gain on the Nikola investment - Net sales decreased by **$153.0 million** YoY, driven by lower average selling prices, lower direct volume in Steel Processing, and the deconsolidation of the Engineered Cabs business[127](index=127&type=chunk) - Impairment charges totaled **$9.9 million** in the current quarter, compared to **$40.6 million** in the prior-year quarter which was related to the former Engineered Cabs business[130](index=130&type=chunk) - Equity income from unconsolidated affiliates decreased by **$1.2 million** to **$23.6 million**, mainly due to a **$6.2 million** decline in WAVE's contribution[134](index=134&type=chunk) [Segment Operations](index=29&type=section&id=Segment%20Operations) In Q1 FY2021, Steel Processing net sales fell by **$92.4 million** but operating income rose to **$13.6 million** on improved spreads, while Pressure Cylinders' net sales decreased by **$33.5 million** and operating income dropped sharply to **$8.6 million** due to prior-year benefits and current-quarter charges Segment Operating Income (in millions) | Segment | Q1 FY2021 | Q1 FY2020 | | :--- | :--- | :--- | | Steel Processing | $13.6 | $6.2 | | Pressure Cylinders | $8.6 | $29.6 | | Other | $(0.7) | $(45.2) | - Steel Processing's operating income increased by **$7.4 million** despite lower sales, driven by improved spreads and lower conversion costs, with inventory holding losses at **$6.8 million**, down from **$8.4 million** YoY[139](index=139&type=chunk) - Pressure Cylinders' operating income fell by **$21.0 million**, as the prior year benefited from a **$12.8 million** gain from a take-or-pay contract cancellation, while the current quarter included **$10.2 million** in impairment and restructuring charges[141](index=141&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity strengthened significantly, with cash and cash equivalents increasing by **$502.9 million** to **$650.1 million** at quarter-end, primarily due to **$487.9 million** in proceeds from selling Nikola shares - Cash and cash equivalents increased to **$650.1 million**, largely due to **$487.9 million** in proceeds from the sale of Nikola shares[145](index=145&type=chunk)[146](index=146&type=chunk) - During the quarter, the company repurchased **1,460,484** of its common shares for **$54.3 million**[145](index=145&type=chunk) - The Board of Directors declared a quarterly dividend of **$0.25 per share**, an increase from **$0.24** in the prior year[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=33&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its market risks have not changed significantly from those disclosed in its Annual Report on Form 10-K for the fiscal year ended May 31, 2020 - There were no significant changes to market risks compared to the disclosures in the fiscal 2020 Form 10-K[162](index=162&type=chunk) [Item 4. Controls and Procedures](index=33&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of August 31, 2020, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of August 31, 2020, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[164](index=164&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[165](index=165&type=chunk) [Part II. Other Information](index=34&type=section&id=Part%20II%2E%20Other%20Information) [Item 1. Legal Proceedings](index=34&type=section&id=Item%201%2E%20Legal%20Proceedings) The company is involved in various legal actions arising in the ordinary course of business but does not expect any pending litigation to have a material adverse effect on its financial position, results, or cash flows - Pending litigation is not expected to have a material adverse effect on the company's financial condition or results of operations[166](index=166&type=chunk) [Item 1A. Risk Factors](index=34&type=section&id=Item%201A%2E%20Risk%20Factors) There have been no significant changes to the company's risk factors from those disclosed in its Annual Report on Form 10-K for the fiscal year ended May 31, 2020 - The company's risk factors have not changed significantly from those disclosed in the 2020 Form 10-K[167](index=167&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=34&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the quarter ended August 31, 2020, the company repurchased **1,516,985** common shares at an average price of **$37.20** per share, with **1,460,484** shares repurchased under publicly announced plans Share Repurchases for the Quarter Ended August 31, 2020 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | June 2020 | 56,501 | $37.94 | 0 | | July 2020 | 1,417,321 | $37.13 | 1,417,321 | | August 2020 | 43,163 | $38.68 | 43,163 | | **Total** | **1,516,985** | **$37.20** | **1,460,484** | - At the end of the quarter, **6,239,516** common shares were still available for repurchase under the company's authorized plans[168](index=168&type=chunk) [Item 6. Exhibits](index=35&type=section&id=Item%206%2E%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the CEO and CFO, various corporate governance and compensation-related documents, and XBRL interactive data files

Worthington Industries, Inc. (NYSE:WOR) Q1 2021 Results Conference Call September 23, 2020 2:00 PM ET Company Participants Marcus Rogier - Treasurer and Investor Relations Officer John McConnell - Executive Chairman Andy Rose - President and Chief Executive Officer Joe Hayek - Chief Financial Officer Conference Call Participants Michael Leshock - Keybanc Capital Markets Seth Rosenfeld - Exane BNP John Tumazos - John Tumazos Very Independent Research Operator Good afternoon and welcome to the Worthington Ind ...

| --- | --- | |------------------------------------------------------------------------------|--------------------------------------------| | Ohio | 31-1189815 | | (State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | | 200 Old Wilson Bridge Road, Columbus, Ohio | 43085 | | (Address of Principal Executive Of ices) | (Zip Code) | UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 ...

Worthington Industries, Inc. (NYSE:WOR) Q4 2020 Earnings Conference Call June 25, 2020 10:30 AM ET Company Participants Marcus Rogier - Treasurer and Investor Relations Officer John McConnell - Chairman and Chief Executive Officer Andy Rose - President Joe Hayek - Chief Financial Officer Conference Call Participants Seth Rosenfeld - Exane BNP Phil Gibbs - KeyBanc Capital Markets John Tumazos - John Tumazos Very Independent Research Edward Collery - SC Fundamental Operator Good morning and welcome to the Wo ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended February 29, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________ Commission file number 001-08399 WORTHINGTON INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Ohio 31-118 ...