Worthington Industries, Inc. (NYSE:WOR) Q4 2023 Earnings Conference Call June 29, 2023 9:00 AM ET Company Participants Marcus Rogier - Treasurer and IRO Joe Hayek - CFO Tim Adams - CFO, Steel Processing Business Andy Rose - President and CEO Conference Call Participants Katja Jancic - BMO Capital Markets Martin Englert - Seaport Research Partners Phil Gibbs - Keybanc Capital Markets John Tumazos - John Tumazos Very Independent Research, LLC Operator Hello and welcome to the Worthington Industries' Fourth Qu ...

Q4 FY2023 Results / Business Update V I S I O N T O B E T H E TRANSFORMATIVE PARTNER F O R O U R C U S T O M E R S , A POSITIVE FORCE I N O U R C O M M U N I T I E S A N D E A R N EXCEPTIONAL RETURNS 2 CORPORATE CITIZENSHIP & SUSTAINABILITY Long history of keeping employees safe, practicing good citizenship and protecting the environment FY2022 HIGHLIGHTSAWARDS & RECOGNITIONS Top-ranked company on IBD's 100 Best ESG companies for 2022 Newsweek America's Most Responsible Companies for 2023 For more details, ...

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 28, 2023 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 ...

Worthington Industries, Inc. (NYSE:WOR) Q3 Fiscal 2023 Earnings Conference Call March 23, 2023 9:00 AM ET Company Participants Marcus Rogier - Treasurer and Investor Relations Officer Andy Rose - President and Chief Executive Officer Joe Hayek - Chief Financial Officer Tim Adams - CFO of the Steel Processing business Conference Call Participants Martin Englert - Seaport Research Partners Katja Jancic - BMO Capital Markets John Tumazos - John Tumazos Very Independent Research, LLC Phil Gibbs - Keybanc Operat ...

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 November 30, 2022 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 ...

Worthington Industries, Inc. (NYSE:WOR) Q2 2023 Earnings Conference Call December 21, 2022 8:30 AM ET Company Participants Marcus Rogier - Investor Relations Andy Rose - President and Chief Executive Officer Joe Hayek - Chief Financial Officer Geoff Gilmore - Chief Operating Officer Conference Call Participants Phil Gibbs - KeyBanc Capital Markets Katja Jancic - BMO Capital Markets John Tumazos - John Tumazos Very Independent Research Operator Good morning and welcome to the Worthington Industries Second Qu ...

Worthington Industries, Inc. (NYSE:WOR) Q1 2023 Earnings Conference Call September 29, 2022 8:30 AM ET Company Participants Marcus Rogier - Treasurer and IR Officer Andy Rose - President & CEO Joseph Hayek - CFO Conference Call Participants Martin Englert - Seaport Research Partners Phil Gibbs - KeyBanc Capital Markets Seth Rosenfeld - BNP Paribas Katja Jancic - BMO Capital Markets John Tumazos - JTI Research Operator Good morning, and welcome to the Worthington Industries First Quarter Fiscal 2023 Earnings ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Worthington Industries is an industrial manufacturing company focused on value-added steel processing and manufactured consumer, building, and sustainable mobility products - The company is an industrial manufacturer with two main focus areas: **value-added steel processing** and **manufactured products for consumer, building, and sustainable mobility markets**[13](index=13&type=chunk) - Effective June 1, 2021, the company reorganized its legacy Pressure Cylinders segment into three new reportable segments: **Consumer Products**, **Building Products**, and **Sustainable Energy Solutions**[16](index=16&type=chunk) - Key acquisitions in fiscal 2022 include certain assets of Shiloh Industries' U.S. BlankLight® business for approximately **$104.5 million** and Tempel Steel Company for approximately **$272.2 million**, both bolstering the Steel Processing segment[16](index=16&type=chunk)[19](index=19&type=chunk) FY2022 Net Sales by Segment | Segment | Net Sales Percentage | | :--- | :--- | | Steel Processing | 75.0% | | Consumer Products | 12.1% | | Building Products | 10.3% | | Sustainable Energy Solutions | 2.5% | - The automotive industry is the largest end market for the Steel Processing segment, and one automotive customer accounted for **13% of the company's consolidated net sales** in fiscal 2022[22](index=22&type=chunk)[24](index=24&type=chunk) [Risk Factors](index=15&type=section&id=Item%201A.%20Risk%20Factors) The company identifies numerous risks, including macroeconomic and geopolitical factors, supply chain disruptions, and commodity price volatility - The COVID-19 pandemic continues to pose risks through potential **volatility in product demand**, **supply chain disruptions**, and **operational closures**[66](index=66&type=chunk) - The Russia-Ukraine conflict may adversely affect business, particularly European operations, through **market disruptions**, **commodity price volatility**, and **supply chain interruptions**[69](index=69&type=chunk)[71](index=71&type=chunk) - A significant portion of net sales is tied to the **automotive and construction industries**, making the company vulnerable to downturns in these cyclical markets[72](index=72&type=chunk) - Operating results are significantly affected by **fluctuations in raw material prices**, particularly steel, and the company may not be able to pass on cost increases or avoid inventory write-downs[75](index=75&type=chunk)[76](index=76&type=chunk) - Approximately **50% of the Steel Processing segment's net sales** are to automotive-related customers, with a significant portion tied to the Detroit Three automakers, posing risk from production reductions[83](index=83&type=chunk) [Unresolved Staff Comments](index=25&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments from the SEC - There are **no unresolved staff comments**[126](index=126&type=chunk) [Properties](index=25&type=section&id=Item%202.%20Properties) The company operates over 10 million square feet of manufacturing space, primarily owned, and considers its facilities well-maintained and sufficient for current needs - As of May 31, 2022, the company and its joint ventures operate from over **10,000,000 square feet of owned or leased space**, primarily for manufacturing[126](index=126&type=chunk) Facility Ownership Summary (Excluding JVs) | Operating Segment | Number of Facilities | Leased | Owned | | :--- | :--- | :--- | :--- | | Steel Processing | 14 | 2 | 12 | | Consumer Products | 5 | 2 | 3 | | Building Products | 6 | 0 | 6 | | Sustainable Energy Solutions | 3 | 0 | 3 | | **Total** | **28** | **4** | **24** | [Legal Proceedings](index=26&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in various ordinary course legal proceedings but does not expect any to have a material adverse effect on its financial condition or operations - The company does not expect any ongoing legal proceedings to have a **material adverse effect** on its financial condition or results[131](index=131&type=chunk) [Mine Safety Disclosures](index=26&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=28&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Worthington Industries' common shares trade on the NYSE, and the company repurchased **1,000,000 shares** for **$52.4 million** in Q4 FY2022, with **6,065,000 shares** remaining for repurchase - The company's common shares are traded on the New York Stock Exchange under the ticker symbol **WOR**[144](index=144&type=chunk) Share Repurchases (Quarter Ended May 31, 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | March 2022 | 300,000 | $52.08 | | April 2022 | 700,000 | $52.64 | | May 2022 | 0 | - | | **Total** | **1,000,000** | **$52.39** | - As of May 31, 2022, there were **6,065,000 common shares** remaining for repurchase under the company's publicly announced plans[150](index=150&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In fiscal 2022, net sales increased by **65.3% to $5.24 billion** due to higher steel prices, while net earnings decreased to **$379.4 million** from **$723.8 million** due to a prior-year gain, and operating cash flow declined due to increased working capital Fiscal 2022 vs. 2021 Performance Summary | Metric (in millions, except EPS) | Fiscal 2022 | Fiscal 2021 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $5,242.2 | $3,171.4 | +$2,070.8 | | Operating Income | $329.3 | $167.5 | +$161.8 | | Equity Income | $213.6 | $123.3 | +$90.3 | | Net Earnings Attributable to Controlling Interest | $379.4 | $723.8 | -$344.4 | | Diluted EPS | $7.44 | $13.40 | -$5.96 | - The significant increase in FY2022 net sales was primarily driven by **higher average selling prices in the Steel Processing segment**, reflecting a sharp rise in market steel prices, with the average price per ton of hot-rolled steel at **$1,588** in FY2022 compared to **$869** in FY2021[176](index=176&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - The decrease in net earnings for FY2022 is attributable to the prior year (FY2021) including a **$655.1 million pre-tax gain** on the investment in Nikola Corporation[187](index=187&type=chunk) - Net cash provided by operating activities decreased to **$70.1 million** in FY2022 from **$274.4 million** in FY2021, mainly due to a **$179.8 million increase in operating working capital requirements** driven by higher average steel prices[229](index=229&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=47&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages market risks from interest rates, foreign currency, and commodity prices using derivative financial instruments for hedging purposes, not speculation - The company manages interest rate risk using a combination of **fixed and variable rate debt** and has used interest rate swaps in conjunction with the issuance of its 2026 and 2032 senior notes[260](index=260&type=chunk)[261](index=261&type=chunk)[262](index=262&type=chunk) - Foreign currency exchange risk is managed using **forward contracts** to hedge exposure on certain intercompany loans and transactions denominated in non-local currencies[263](index=263&type=chunk) - Commodity price risk for materials such as steel, natural gas, copper, and zinc is managed through the use of **derivative financial instruments** to hedge against price fluctuations[265](index=265&type=chunk) Fair Value of Outstanding Derivative Positions | (in millions) | Fair Value at May 31, 2022 | Fair Value at May 31, 2021 | | :--- | :--- | :--- | | Foreign currency exchange contracts | $(0.3) | $(0.5) | | Commodity contracts | $3.9 | $63.5 | | **Total** | **$3.6** | **$63.0** | [Financial Statements and Supplementary Data](index=49&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for fiscal year 2022, including balance sheets, statements of earnings, cash flows, and detailed notes - The independent auditor, KPMG LLP, issued an **unqualified opinion** on the consolidated financial statements and on the effectiveness of the company's internal control over financial reporting[273](index=273&type=chunk)[274](index=274&type=chunk) Consolidated Balance Sheet Highlights (in thousands) | Account | May 31, 2022 | May 31, 2021 | | :--- | :--- | :--- | | Total Current Assets | $1,785,653 | $1,967,992 | | Total Assets | $3,643,023 | $3,373,245 | | Total Current Liabilities | $932,261 | $787,901 | | Total Liabilities | $2,029,061 | $1,821,550 | | Total Equity | $1,613,962 | $1,551,695 | Consolidated Statement of Earnings Highlights (in thousands) | Account | FY 2022 | FY 2021 | FY 2020 | | :--- | :--- | :--- | :--- | | Net Sales | $5,242,219 | $3,171,429 | $3,059,119 | | Gross Margin | $714,816 | $639,078 | $443,337 | | Operating Income | $329,268 | $167,473 | $22,489 | | Net Earnings Attributable to Controlling Interest | $379,386 | $723,795 | $78,796 | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=103&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) This item is not applicable to the company [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of May 31, 2022, with internal control assessment excluding recently acquired businesses, and no material changes occurred in Q4 - The principal executive officer and principal financial officer concluded that **disclosure controls and procedures were effective** at a reasonable assurance level as of May 31, 2022[588](index=588&type=chunk) - Management's assessment of internal control over financial reporting excluded the operations of **Shiloh's U.S. BlankLight® business** and **Tempel**, both acquired in fiscal 2022[592](index=592&type=chunk) - The independent registered public accounting firm, KPMG LLP, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting as of May 31, 2022[594](index=594&type=chunk)[597](index=597&type=chunk) [Other Information](index=107&type=section&id=Item%209B.%20Other%20Information) The company reports no other information for this item - **None**[605](index=605&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=108&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information regarding directors, executive officers, and corporate governance is incorporated by reference from the company's 2022 Proxy Statement - Information concerning directors and nominees is **incorporated by reference** from the definitive Proxy Statement for the 2022 Annual Meeting[607](index=607&type=chunk) - Information about executive officers is located in the 'Supplemental Item – Information about our Executive Officers' section in **Part I of this Form 10-K**[608](index=608&type=chunk) [Executive Compensation](index=109&type=section&id=Item%2011.%20Executive%20Compensation) Detailed information regarding executive compensation is incorporated by reference from the company's 2022 Proxy Statement - All information required by this item is **incorporated by reference** from the 2022 Proxy Statement[613](index=613&type=chunk)[614](index=614&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=109&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information regarding security ownership of certain beneficial owners, management, and equity compensation plans is incorporated by reference from the company's 2022 Proxy Statement - Information on security ownership and equity compensation plans is **incorporated by reference** from the 2022 Proxy Statement[615](index=615&type=chunk)[616](index=616&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=109&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information concerning certain relationships, related person transactions, and director independence is incorporated by reference from the company's 2022 Proxy Statement - Details on related party transactions and director independence are **incorporated by reference** from the 2022 Proxy Statement[617](index=617&type=chunk)[618](index=618&type=chunk) [Principal Accountant Fees and Services](index=109&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding fees paid to and services provided by KPMG LLP is incorporated by reference from the company's 2022 Proxy Statement - Information on principal accountant fees and services is **incorporated by reference** from the 2022 Proxy Statement[619](index=619&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=110&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists all documents filed as part of the Form 10-K, including financial statements, schedules, and a comprehensive index of exhibits - This section contains the list of all financial statements, schedules, and exhibits filed with the **Form 10-K**[621](index=621&type=chunk)[622](index=622&type=chunk) [Form 10-K Summary](index=110&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company