Worthington Industries(WOR) - 2025 Q2 - Quarterly Report

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 $XX million, representing a XX$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$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].