Financial Data and Key Metrics Changes - The company reported GAAP earnings from continuing operations of $0.79 per share, up from $0.44 in the prior year quarter, reflecting strong earnings growth [20] - Adjusted EBITDA for the quarter was $74 million, an increase from $67 million in Q3 of last year, with an adjusted EBITDA margin of over 24% compared to 21% last year [24] - Consolidated net sales for the quarter were $305 million, a 3.9% decrease from $317 million in the prior year quarter, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment [22][23] Business Line Data and Key Metrics Changes - Consumer Products net sales grew 5% year-over-year to $140 million, with adjusted EBITDA of $29 million and a margin of 20.5% [29] - Building Products Q3 net sales grew 11% year-over-year to $165 million, with adjusted EBITDA of $53 million and a margin of 32% [32] - The decline in equity earnings from joint ventures, particularly ClarkDietrich, negatively impacted overall performance, contributing $9 million in equity earnings for the quarter [34][36] Market Data and Key Metrics Changes - The company experienced improved demand as it returned to more seasonally normal trends across its value streams, contributing to revenue growth [10] - The Building Products team demonstrated resilience in navigating current market conditions, with a focus on heating, cooling, construction, and water infrastructure [36] Company Strategy and Development Direction - The company continues to leverage the Worthington Business System, focusing on innovation, transformation, and M&A as growth drivers [10][18] - Investments in automation and facility modernization are ongoing, with a commitment to enhancing operational efficiency [15][25] - The company aims to maintain a strong balance sheet and liquidity to pursue growth through acquisitions, targeting market-leading businesses [18][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating cost pressures related to tariffs and supply chain issues, highlighting a proactive approach to managing costs [41][42] - The company remains optimistic about future demand, particularly in the Consumer Products segment, despite ongoing macroeconomic uncertainty [31][132] - Management emphasized the importance of maintaining strong relationships with retail partners to ensure product availability and meet customer needs [131] Other Important Information - The company declared a quarterly dividend of $0.17 per share payable in June 2025 [29] - Free cash flow totaled $144 million on a trailing 12-month basis, representing a 104% free cash flow conversion rate relative to adjusted net earnings [27] Q&A Session Summary Question: How are tariffs being navigated in today's market? - Management indicated that they are well-positioned as a domestic manufacturer and have diversified sourcing capabilities to manage cost increases, with pending price increases announced on many products [41][45] Question: What are the contributing factors for progress in the core product's EBITDA margin? - Management noted a positive mix shift and return to seasonally normal demand levels, with the wholly-owned business margin improving significantly [50][51] Question: Can you provide an update on the M&A pipeline? - Management stated that the M&A pipeline remains healthy, with ongoing assessments of opportunities despite macroeconomic uncertainty [92] Question: What is the outlook for free cash flow conversion? - Management expressed a target to sustain free cash flow conversion rates above 100%, despite ongoing capital expenditures for facility modernization [75] Question: How much did new product initiatives contribute to growth this quarter? - Management clarified that new product initiatives did not significantly contribute to the current quarter's growth but are expected to drive future revenue and margin improvements [82][85]

Financial Data and Key Metrics Changes - The company reported GAAP earnings from continuing operations of $0.79 per share, up from $0.44 in the prior year quarter, reflecting strong earnings growth [14] - Adjusted EBITDA for the quarter was $74 million, an increase from $67 million in Q3 of last year, with an adjusted EBITDA margin of over 24% compared to 21% last year [17][19] - Consolidated net sales for the quarter were $305 million, a 3.9% decrease from $317 million in the prior year quarter, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment [15][19] Business Line Data and Key Metrics Changes - Consumer products Q3 net sales grew 5% year over year to $140 million, with adjusted EBITDA of $29 million and a 20.5% margin [20] - Building products Q3 net sales grew 11% year over year to $165 million, with adjusted EBITDA of $53 million and a 32% margin [21] - The Regasco acquisition contributed positively to sales growth, while the heating, cooling, and water businesses showed strong performance [21][22] Market Data and Key Metrics Changes - The company noted improved demand returning to seasonally normal trends across value streams, contributing to growth in various markets [6][21] - The consumer segment benefited from higher volumes, despite ongoing macroeconomic uncertainty, positioning the company well for the spring and outdoor season [20] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and M&A to maximize near and long-term success [7][12] - The strategy includes launching new products, such as IoT-enabled solutions and expanding distribution channels, to enhance market share [8][10] - The company is committed to maintaining a strong balance sheet and liquidity to pursue additional growth through acquisitions [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current operating environment, emphasizing the company's domestic manufacturing strength and diversified sourcing capabilities [29] - The company anticipates long-term growth opportunities in commercial construction and repair and remodel activity, despite current macroeconomic uncertainties [23] Other Important Information - The company invested $13 million in capital projects during the quarter, including $8 million related to facility modernization initiatives [18] - The Board of Directors declared a quarterly dividend of $0.17 per share payable in June 2025 [19] Q&A Session Summary Question: How are tariffs being navigated in today's market? - Management indicated that the company is well-positioned as a domestic manufacturer and has diversified sourcing capabilities to manage cost pressures, including potential price increases [28][30] Question: What are the contributing factors for progress in core products' EBITDA margin? - The building products business saw an increase in EBITDA margin from 6% to 11% year over year, driven by positive mix shifts and returning to seasonally normal demand levels [37] Question: Can you provide an update on the M&A pipeline? - The M&A pipeline remains healthy, with ongoing assessments of opportunities despite macroeconomic uncertainties [70] Question: What is the outlook for free cash flow conversion? - The company aims to maintain strong free cash flow conversion rates, targeting over 100% while continuing to invest in capital projects [57] Question: How is the company addressing the challenges in the consumer segment? - Management noted that demand remains healthy, and proactive communication with retail partners is key to managing inventory levels [101]

Q 3 F Y 2 0 2 5 E A R N I N G S S U M M A R Y M A R C H 2 5 , 2 0 2 5 NEGATIVES CPG BPG Q3 FY2025 / Recent Highlights Consolidated net sales declined 3.9% year over year driven by the SES deconsolidation, but profitability improved with gross margin increasing to 29.3% from 23.1% and Adj. EBITDA margin rising to 24.2% from 21.1% in the prior year quarter Building Products Adj. EBITDA of $53 million and Adj. EBITDA margin of 32.3% in Q3 maintaining a solid performance compared to $53 million and 35.8% in the ...

Financial Data and Key Metrics Changes - Worthington Enterprises reported GAAP earnings from continuing operations of $0.79 per share, up from $0.44 in the prior year quarter, reflecting strong earnings growth [15] - Adjusted EBITDA for the quarter was $74 million, an increase from $67 million in Q3 of the previous year, with an adjusted EBITDA margin of over 24% compared to 21% last year [17][19] - Consolidated net sales for the quarter were $305 million, a 3.9% decrease from $317 million in the prior year quarter, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment [16][19] Business Line Data and Key Metrics Changes - Consumer products net sales grew 5% year over year to $140 million, with adjusted EBITDA of $29 million and a 20.5% margin [20] - Building products net sales increased 11% year over year to $165 million, with adjusted EBITDA of $53 million and a 32% margin [21] - Excluding the Sustainable Energy Solutions segment, sales grew over 8%, driven by the Regasco acquisition and improved demand [16][19] Market Data and Key Metrics Changes - The consumer products segment benefited from higher volumes despite ongoing macroeconomic uncertainty, while the building products segment saw strong performance in heating, cooling, and water businesses [20][21] - Joint ventures contributed $35 million in dividends during the quarter, with a 110% cash conversion rate on net equity income [18] Company Strategy and Development Direction - The company continues to leverage its business system focusing on innovation, transformation, and M&A to maximize near and long-term success [7][13] - Worthington is investing in automation and facility modernization to enhance operational efficiency and is embracing AI across its facilities [12][13] - The company aims to maintain a strong balance sheet and liquidity to pursue growth through acquisitions, focusing on market-leading businesses that can enhance margins and free cash flows [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current operating environment, emphasizing the company's domestic manufacturing strength and diversified sourcing capabilities [28] - The company anticipates continued growth driven by strong market positions and innovative product offerings, despite potential macroeconomic challenges [14][23] - Management highlighted the importance of maintaining a disciplined approach to capital allocation while pursuing growth opportunities [18][55] Other Important Information - The company declared a quarterly dividend of $0.17 per share payable in June 2025 [19] - Free cash flow totaled $144 million on a trailing twelve-month basis, representing a 104% free cash flow conversion rate relative to adjusted net earnings [18] Q&A Session Summary Question: How are tariffs being navigated in today's market? - Management indicated that they are well-positioned as a domestic manufacturer and have diversified sourcing capabilities to manage cost pressures, including potential price increases [28][30] Question: What are the contributing factors for progress in core products' EBITDA margin? - The building products business saw an EBITDA margin increase from 6% to 11% year over year, driven by positive mix shifts and seasonal demand recovery [36] Question: Can you provide an update on the M&A pipeline? - The M&A pipeline remains healthy, with ongoing assessments of opportunities despite current market uncertainties [68] Question: What is the outlook for free cash flow conversion? - Management aims to sustain free cash flow conversion above 100%, even with ongoing capital expenditures for facility modernization [55] Question: How is the company addressing the challenges in the consumer segment? - Management noted that they are proactively working with retail partners to manage inventory levels and ensure product availability, which has led to healthy demand [99]

Core Viewpoint - Worthington Enterprises Inc. reported strong financial results for the third quarter of fiscal 2025, showcasing year-over-year growth in revenue, adjusted EBITDA, and adjusted EPS despite a decrease in net sales due to the deconsolidation of a segment [1][2][3]. Financial Highlights - Net sales for Q3 2025 were $304.5 million, a decrease of $12.2 million or 3.9% from Q3 2024, primarily due to the deconsolidation of the SES segment [2][3]. - Operating income increased significantly to $20.9 million from $4.3 million in the prior year [1][4]. - Earnings before income taxes rose by 30% to $52.6 million, while adjusted EBITDA from continuing operations grew by 10% to $73.8 million [3][4]. - Net earnings from continuing operations were $39.7 million, up from $22.0 million, leading to an 80% increase in diluted EPS from continuing operations to $0.79 [1][3]. Cash Flow and Capital Management - The company generated $57.1 million in net cash from operating activities, an increase of 14% from the previous year, with free cash flow rising to $44.4 million [3][7]. - Worthington repurchased 150,000 shares of common stock for $6.2 million, leaving 5,565,000 shares remaining under its repurchase authorization [3][4]. Segment Performance - The Consumer Products segment reported net sales of $139.7 million, an increase of 4.9% driven by higher volumes [9]. - The Building Products segment generated net sales of $164.8 million, an increase of 11.2%, attributed to contributions from Ragasco and a favorable product mix [10]. Equity Income and Tax Expense - Equity income decreased by $11.2 million to $32.1 million, primarily due to lower contributions from ClarkDietrich [5]. - Income tax expense decreased by $5.2 million to $13.2 million, reflecting a lower estimated annual effective tax rate of 24.4% [6]. Balance Sheet Overview - The company ended the quarter with cash of $222.8 million, down from $244.2 million at the end of the previous quarter [7][26]. - Total debt remained relatively unchanged at $293.9 million, with no borrowings under its revolving credit facility [8][26]. Future Outlook - The company expressed confidence in its ability to drive long-term growth and deliver shareholder value, supported by a strong balance sheet and disciplined capital allocation strategy [11].

Core Points - Worthington Enterprises Inc. declared a quarterly dividend of $0.17 per share, payable on June 27, 2025, to shareholders of record on June 13, 2025, marking a continuous dividend payment since its IPO in 1968 [1] - Brant Standridge has been appointed as a new board member, bringing extensive experience in consumer behavior, trends, and M&A, which will be valuable for the company's growth [2][3] - The company will hold its quarterly earnings conference call on March 26, 2025, at 8:30 a.m. ET to discuss its fiscal third quarter results [3][5] Company Overview - Worthington Enterprises is a designer and manufacturer of market-leading brands that enhance safety, health, and expression in everyday life, operating in two primary segments: Building Products and Consumer Products [6] - The Building Products segment includes solutions for cooking, heating, cooling, and water, while the Consumer Products segment covers tools, outdoor living, and celebrations [6] - The company employs approximately 6,000 people across North America and Europe [7] - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings and community engagement through various initiatives [8]

Company Overview - Worthington Enterprises Inc. is a designer and manufacturer of market-leading brands that enhance safety, health, and expression in everyday life [4] - The company operates through two primary business segments: Building Products and Consumer Products [4] - The Building Products segment includes solutions for cooking, heating, cooling, water, architectural ceilings, and metal framing [4] - The Consumer Products segment offers tools, outdoor living, and celebration solutions, featuring brands like Balloon Time®, Bernzomatic®, and Coleman® [4] - Worthington Enterprises also participates in the global hydrogen ecosystem through a joint venture focused on fueling systems and gas containment [4] Employment and Corporate Philosophy - The company is headquartered in Columbus, Ohio, and employs approximately 6,000 people across North America and Europe [5] - Founded in 1955, Worthington Enterprises follows a people-first philosophy, prioritizing shareholder earnings while empowering employees to innovate and grow [6] - The company engages with local communities through volunteer efforts and workforce development programs, and it reports annually on corporate citizenship and sustainability [6] Upcoming Earnings Conference Call - Worthington Enterprises will hold its quarterly earnings conference call on March 26, 2025, at 8:30 a.m. ET [1][3] - The fiscal third quarter results will be released after market close on March 25, 2025 [1] - A live audio webcast will be available for registration, and a replay will be accessible on the company's website approximately two hours after the call [2]

Core Viewpoint - Worthington Enterprises Inc. is urging stakeholders to heed a safety advisory from the U.S. Department of Transportation regarding unsafe pressure cylinders primarily manufactured by non-U.S. companies, emphasizing the importance of compliance with safety standards [1][2]. Company Overview - Worthington Enterprises is the only American manufacturer of various sizes of steel cylinders used in critical infrastructure applications such as cooking, home heating, refrigeration, and insulation [1]. - The company operates two primary business segments: Building Products and Consumer Products, with a diverse portfolio of brands including Balloon Time®, Bernzomatic®, and Coleman® [4]. - Worthington Enterprises has manufacturing facilities across several states, including Kansas, Kentucky, Ohio, Rhode Island, and Wisconsin [3]. Industry Context - The safety advisory from PHMSA highlights concerns over non-compliant cylinders being sold online, which do not meet DOT specifications or UN standards, posing safety risks to consumers and technicians [2]. - The Compressed Gas Cylinder Safety and Oversight Improvements Act of 2023 aims to establish regulations for foreign-manufactured cylinders sold in the U.S., including facility inspections to ensure compliance [2][3]. - The proliferation of unsafe cylinders is attributed to companies in China and other countries undermining U.S. safety standards, which Worthington has adhered to for over 50 years [2]. Future Outlook - Worthington Enterprises is eager to collaborate with Congress and the Trump administration to enact safety reforms in 2025, emphasizing the need for consistent inspection and accountability in the industry [3].

Financial Performance - Worthington Enterprises reported a significant increase in adjusted EBITDA from continuing operations, reaching $XX million for the second quarter of fiscal 2024, compared to $XX million in the same period last year, reflecting a growth of XX%[17]. - The company achieved an adjusted diluted EPS from continuing operations of $X.XX for the second quarter of fiscal 2024, up from $X.XX in the prior year, indicating a year-over-year increase of XX%[18]. - Worthington Enterprises' net sales for the second quarter of fiscal 2024 were $XX million, representing a XX% increase compared to $XX million in the same quarter of fiscal 2023[19]. - For the three months ended November 30, 2024, GAAP net earnings were $28,260, compared to a loss of $17,934 for the same period in 2023, representing a significant turnaround[24]. - Non-GAAP diluted EPS for the three months ended November 30, 2024, was $0.60, up from $0.36 in the prior year, indicating a 66.67% increase[24]. - The company reported a GAAP operating income of $3,521 for the three months ended November 30, 2024, compared to an operating loss of $14,367 in the same period of 2023[24]. - Net earnings from continuing operations for the three months ended November 30, 2024, were $28.009 million, an increase of 56.3% from $17.934 million in the prior year[32]. - Basic EPS from continuing operations for the six months ended November 30, 2024, was $1.06, up from $0.91 in 2023, reflecting a growth of 16.5%[75]. - The company reported a comprehensive income of $24.689 million for the three months ended November 30, 2024, down from $42.613 million in the prior year[35]. Operational Efficiency - Worthington Enterprises reported a decrease in SG&A expenses as a percentage of net sales, improving operational efficiency and profitability margins[20]. - The adjusted EBITDA margin from continuing operations for the three months ended November 30, 2024, was 20.5%, compared to 18.5% in the same period of 2023, showing an improvement of 2 percentage points[27]. - The company incurred restructuring and other expenses of $2,620 for the three months ended November 30, 2024, compared to $6 for the same period in 2023, indicating a significant increase in restructuring costs[27]. Strategic Initiatives - The company is investing in new product development, with a budget allocation of $XX million aimed at expanding its product lines and entering new markets[21]. - Worthington Enterprises has established a $500 million unsecured revolving credit facility to support its liquidity and operational needs[17]. - The company is actively pursuing strategic acquisitions to bolster its market position, with a focus on enhancing capabilities and expanding its customer base[19]. - Worthington Enterprises has successfully completed the separation of its former steel processing business, effective December 1, 2023, which is expected to enhance operational focus and financial performance[22]. - The company acquired Ragasco for a total purchase price of $101,424, with potential additional cash consideration of up to $14,000 based on earnings targets through calendar year 2024[81]. Market Trends - U.S. residential construction spending increased by $28,422 million year-over-year to $918,113 million as of November 30, 2024[109]. - U.S. non-residential construction spending rose by $33,469 million year-over-year to $1,234,468 million as of November 30, 2024[109]. - The average price of hot-rolled steel decreased by $57 per ton to $690, while cold-rolled steel decreased by $40 per ton to $938[109]. - The Homebuilder's Market Index (HMI) increased by 12 points year-over-year to 46.0, indicating resilience in the residential construction market[111]. - The Core Consumer Price Index (CPI) increased by 3.30% compared to November 2023, reflecting ongoing inflationary pressures[114]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $193,805 as of November 30, 2024, from $244,225 as of May 31, 2024, a decrease of 20.56%[30]. - Net cash provided by operating activities for the three months ended November 30, 2024, was $49.053 million, compared to $134.990 million in the same period of 2023[37]. - The company has access to $500.0 million in unused committed lines of credit under its Credit Facility as of November 30, 2024[151]. - Net cash provided by operating activities decreased to $90.2 million for the six months ended November 30, 2024, down from $194.7 million in the prior year period, primarily due to lower net earnings and a $26.2 million decrease in dividends from unconsolidated joint ventures[155]. Shareholder Returns - Cash dividends declared per common share decreased to $0.17 for the three months ended November 30, 2024, down from $0.32 in the same period of 2023[32]. - The Board declared a quarterly dividend of $0.17 per common share payable on March 28, 2025, with a total of $0.32 per common share declared during the second quarter of fiscal 2024[160]. - The company has paid dividends every quarter since becoming public in 1968, but there is no guarantee that this will continue in the future[165]. Asset Management - Total current assets decreased to $602,999 as of November 30, 2024, from $673,893 as of May 31, 2024, a decline of 10.48%[30]. - The company’s total assets increased to $1,657,017 as of November 30, 2024, compared to $1,638,637 as of May 31, 2024, an increase of 1.12%[30]. - The total equity increased from $891,012 million at May 31, 2024, to $912,958 million at November 30, 2024, reflecting a net earnings increase of $28,009 million during this period[67]. - The company reported a pension liability adjustment of $9 million for the six months ended November 30, 2024, compared to a loss of $3 million in the same period of 2023[66]. Risk Management - The company is closely monitoring raw material pricing trends, particularly for steel, and is implementing strategies to mitigate cost fluctuations[16]. - The company has established strict counterparty credit guidelines to manage counterparty credit risk associated with its derivative financial instruments[89]. - The company reported a total loss of $91 million from economic (non-designated) derivative financial instruments for the three months ended November 30, 2024[96].

Financial Performance - Net sales for Q2 fiscal 2025 were $274.0 million, a decrease of 8.1% from $298.2 million in Q2 fiscal 2024, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment[2][4] - Adjusted EPS from continuing operations increased by 5% to $0.60, while adjusted EBITDA rose by 2% to $56.2 million despite lower net sales[2][3] - Operating income improved to $3.5 million, a favorable change of $17.9 million compared to the operating loss of $14.4 million in the prior year quarter[5] - Net earnings from continuing operations for the three months ended November 30, 2024, were $28,009,000, up from $17,934,000 in the prior year, representing a 56.5% increase[23] - Earnings per share from continuing operations for the three months ended November 30, 2024, were $0.57, compared to $0.36 for the same period in 2023, marking a 58.3% increase[23] - The company reported a net earnings attributable to controlling interest of $28,260,000 for the three months ended November 30, 2024, compared to $24,302,000 in the prior year, an increase of 8.0%[23] - Net earnings for the three months ended November 30, 2024, were $28,009,000, compared to $28,167,000 for the same period in 2023, a decrease of 0.6%[27] Segment Performance - Consumer Products segment net sales were $116.7 million, down 2.2% year-over-year, while adjusted EBITDA increased by $2.8 million to $15.5 million[10] - Building Products segment net sales increased by 4.0% to $157.3 million, with adjusted EBITDA rising by $1.4 million to $47.2 million, driven by contributions from Ragasco[11] - Consumer Products segment net sales for the three months ended November 30, 2024, were $116,748 million, down from $119,389 million year-over-year, a decline of 2.2%[34] - Building Products segment net sales for the three months ended November 30, 2024, were $157,298 million, compared to $151,303 million in the prior year, an increase of 4.0%[34] Cash and Debt Management - The company ended the quarter with cash of $193.8 million, down $50.4 million from the previous quarter, primarily due to the acquisition of Ragasco[8] - Total debt remained stable at $295.7 million, with no borrowings under the revolving credit facility, leaving $500.0 million available for future use[9] - Cash and cash equivalents at the end of the period were $193,805,000, down from $430,906,000, representing a decrease of 55.0%[27] - Long-term debt decreased from $298,133,000 to $295,721,000, a decline of about 0.5%[25] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.17 per share, payable on March 28, 2025[2] - Cash dividends declared per share were $0.17 for the three months ended November 30, 2024, down from $0.32 in the same period last year[23] Operational Efficiency - Gross profit increased to $74,059,000 for the three months ended November 30, 2024, compared to $63,278,000 for the same period in 2023, reflecting a gross margin improvement[23] - The company experienced a decrease in cost of goods sold to $199,987,000 for the three months ended November 30, 2024, from $234,951,000 in the same period last year, a reduction of 15.0%[23] - Net cash provided by operating activities for the three months ended November 30, 2024, was $49,053,000, compared to $134,990,000 for the same period in 2023, a decrease of 63.6%[27] Strategic Focus - The company is focused on transformation, innovation, and M&A to drive sustainable growth and deliver long-term value to shareholders[12] - The company incurred separation costs of $7,056,000 in the three months ended November 30, 2023, which were not present in the current quarter[23] - The company eliminated corporate costs at separation, which amounted to $9,671 million in the previous year[36] Non-GAAP Measures - Non-GAAP net earnings for the three months ended November 30, 2023, were $28,514,000, with diluted EPS of $0.57[29] - Non-GAAP adjusted EBITDA from continuing operations for the six months ended November 30, 2024, was $104,649 million, reflecting a margin of 19.7%[36] - Adjusted net earnings from continuing operations for the six months ended November 30, 2024, were $68,395 million, up from $60,333 million in the previous year[36] Equity Income - Equity income decreased by $4.1 million to $34.6 million, impacted by lower contributions from ClarkDietrich and a prior year gain related to divestiture[6] - Equity in net income of unconsolidated affiliates was $34,556,000 for the three months ended November 30, 2024, compared to $38,668,000 in the same period last year, indicating a decrease of 10.9%[23] - Equity income from unconsolidated affiliates for the three months ended November 30, 2024, was $24,564 million, compared to $21,428 million in the same period last year, an increase of 10.0%[34]