Financial Performance - Worthington Industries reported net sales of $5,242,219,000 for the fiscal year ended May 31, 2022, a 65.5% increase from $3,171,429,000 in 2021[280]. - The company's gross margin increased to $714,816,000 in 2022, up from $639,078,000 in 2021, reflecting improved operational efficiency[280]. - Operating income for the fiscal year was $329,268,000, compared to $167,473,000 in the previous year, indicating a significant growth in profitability[280]. - Net earnings for the fiscal year ended May 31, 2022, were $399,264 thousand, a decrease of 46.4% compared to $741,450 thousand in 2021[284]. - Earnings per share attributable to controlling interest was $7.60 for 2022, down from $13.73 in 2021, reflecting the impact of reduced net earnings[280]. - Comprehensive income attributable to controlling interest was $311,149 thousand in 2022, down from $804,399 thousand in 2021, reflecting a decline of 61.3%[284]. - The total comprehensive income for 2022 was $331,027 thousand, significantly lower than $822,054 thousand in 2021, marking a decrease of 59.8%[284]. Assets and Liabilities - Total assets increased to $3,643,023,000 as of May 31, 2022, compared to $3,373,245,000 in 2021, indicating growth in the company's asset base[275]. - Current liabilities rose to $932,261,000 in 2022 from $787,901,000 in 2021, reflecting increased operational activities[278]. - The total debt as of May 31, 2022, was $747,193,000, with long-term debt amounting to $696,345,000[383]. - The funded status of the defined benefit plans showed a deficit of $30,174 thousand at the end of fiscal year 2022, compared to a deficit of $8,059 thousand in 2021[424]. Cash Flow and Investments - Net cash provided by operating activities was $70.112 million, significantly lower than $336.726 million in the previous year[289]. - The company reported a net cash used by investing activities of $438.188 million, compared to a net cash provided of $468.510 million in fiscal year 2021[289]. - The company acquired Tempel Steel Company for approximately $272,208,000, with a fair value of customer relationships intangible asset amounting to $30,000,000[270]. - Investments in unconsolidated affiliates increased to $327,381,000 in 2022 from $233,126,000 in 2021, indicating a strategic focus on partnerships[275]. Market Risks and Derivatives - The company is exposed to market risks related to price fluctuations of steel, natural gas, copper, and zinc, and uses derivative financial instruments to manage this exposure[256]. - The fair value of total derivative financial instruments as of May 31, 2022, was $3.6 million, compared to $63.0 million in 2021, indicating a significant decrease[258]. - The company has a notional amount of $150 million in interest rate swaps to hedge against interest rate changes for its senior unsecured notes[252]. - The company does not use derivative financial instruments to manage foreign currency exchange risk but utilizes forward contracts for certain intercompany loans[254]. Strategic Initiatives and Future Outlook - The company anticipates improvements in operational efficiencies and cost management as part of its strategic initiatives[14]. - The company is focused on maintaining liquidity and accessing financial markets to support its operations and growth plans[14]. - The company plans to continue expanding its market presence and investing in new technologies[360]. Stock and Shareholder Information - The company declared cash dividends of $0.96 per share in 2020 and $1.03 per share in 2021, with a subsequent increase to $1.12 per share in 2022[287]. - The balance of common shares at May 31, 2022, was 48,380,112 shares, reflecting a reduction from 51,330,347 shares in 2021[287]. - During fiscal 2022, the company repurchased 3,235,000 common shares at an aggregate cost of $180,248,000[396]. - The company has authorized the repurchase of up to 6,065,000 common shares as of May 31, 2022[395]. Pension and Employee Benefits - Net periodic benefit cost for defined benefit pension and other postretirement benefit plans was $18,087 thousand in fiscal year 2022, an increase from $17,554 thousand in 2021[421]. - The company assumed approximately $40,160 thousand of net pension and other postretirement benefit obligations from the acquisition of Tempel on December 1, 2021[420]. - The company expects to contribute approximately $7,836,000 to the defined benefit and OPEB plans during fiscal 2023[428]. Taxation - The effective tax rate attributable to controlling interest for fiscal 2022 was 23.3%, compared to 19.6% in fiscal 2021[432]. - The total amount of unrecognized tax benefits increased to $4,706,000 as of May 31, 2022, from $3,836,000 in 2021[434]. - Deferred tax assets totaled $62,608,000 as of May 31, 2022, with net deferred tax assets amounting to $56,730,000[438].
Worthington Industries(WOR_V) - 2022 Q4 - Annual Report