Financial Performance - Worthington Enterprises reported adjusted EBITDA of $67 million and adjusted earnings per share of $0.80 for Q3 2024[8]. - Consolidated net sales decreased by 8.5% to $317 million from $346 million in the prior year, driven by lower sales in Building Products[22]. - Gross profit for the quarter decreased to $73 million, while gross margin increased to 23.1% from 22.8%[23]. - Adjusted EBITDA margin for the trailing 12 months is 21.5%, with trailing 12 months adjusted EBITDA at $279 million[24]. - The Consumer Products segment saw net sales of $133 million, up from $131 million a year ago, with adjusted EBITDA of $26 million[28]. - Building Products generated net sales of $148 million, down 19% from $184 million a year ago, with adjusted EBITDA of $53 million[31]. - Sustainable Energy Solutions reported net sales of $35 million, an 11% increase, but incurred an adjusted EBITDA loss of $3 million[37]. - Worthington Enterprises ended the quarter with $298 million in long-term funded debt and $227 million in cash, yielding around 5%[26]. - The company declared a dividend of $0.16 per share for the quarter, totaling approximately $8 million[27]. Strategic Initiatives - Worthington acquired an 80% interest in HALO Products Group for approximately $9 million, enhancing its outdoor living product offerings[30]. - The HALO acquisition is expected to enhance product development and market presence, with a focus on margin-rich and asset-light opportunities[57][61]. - The company aims to drive its EBITDA margin up to 24% over the next three to five years through improved profitability and capital efficiency[71]. - The M&A pipeline is expected to pick up in 2024, with a focus on larger acquisitions that align with the company's strategic goals[59]. Market Trends and Outlook - The company anticipates a potential increase in demand as it approaches the spring and summer seasons, despite current cautious consumer sentiment[53]. - The company is experiencing destocking in large propane tanks, impacting sales, but overall volumes are only down 2%[76]. - The consumer business has seen a weather-related spike in demand for camping gas cylinders due to recent storms[48]. - The overall market for commercial construction products remains steady, with potential for a renovation renaissance driven by macro trends[65]. - The company has maintained its market share in key categories despite challenges in the current economic environment[55]. Segment Performance - The gross margin for the quarter was 23.1%, with the Consumer products business achieving an EBITDA margin of 19.3%[66]. - The Building Products segment reported a gross margin of 6.2%, which is expected to normalize above this level[68].
Worthington Industries(WOR_V) - 2023 Q4 - Annual Results