Financial Performance - For fiscal 2024, the company reported net earnings before income taxes attributable to controlling interest of $74.270 million, a decrease of 53.7% from $160.286 million in fiscal 2023[115]. - Adjusted EBITDA from continuing operations for fiscal 2024 was $250.999 million, down 18.0% from $306.025 million in fiscal 2023[115]. - The company incurred impairment charges of $32.975 million in fiscal 2024, compared to only $484 thousand in fiscal 2023[115]. - The company’s adjusted EBIT for fiscal 2024 was $189.181 million, a decline of 23.0% from $245.484 million in fiscal 2023[115]. - The company reported a Non-GAAP net income of $143,463 million, with a diluted EPS of 2.84, reflecting a 23.5% increase[1]. - The effective tax rate for the period was 52.6%, with a net earnings from continuing operations of $35,243 million[1]. - The company reported a pre-tax loss of $16,059 million related to the sale of its 50% noncontrolling equity investment in ArtiFlex[2]. - The company experienced a restructuring and other expense of $29,327 million, with a net impact of $24,590 million on earnings[1]. - The company reported a gain of $2,780 million associated with the divestiture of Brazilian operations during the second quarter of fiscal 2024[2]. - Net earnings attributable to controlling interest were $110,624 thousand, down 56.9% from $256,528 thousand in fiscal 2023[524]. - Earnings per share from continuing operations (basic) decreased to $0.72, down 72.8% from $2.59 in the previous year[524]. Operational Highlights - Corporate costs eliminated at Separation amounted to $19.343 million in fiscal 2024, down from $41.479 million in fiscal 2023[115]. - The company emphasizes a disciplined approach to capital deployment and aims to grow earnings through optimizing operations and pursuing strategic investments[116]. - The company aims to drive continuous improvement through the Worthington Business System, focusing on cost reduction and operational efficiency[1]. - The company’s ability to attract and retain talented personnel is crucial for its operational success and growth strategies[121]. - The company employs approximately 3,800 individuals, with 14% represented by collective bargaining units[231]. - The company is committed to increasing diversity across its workforce, believing it drives innovation and better results[234]. Market and Economic Conditions - The company faces challenges from financial difficulties and bankruptcy filings by customers, which could negatively impact its business operations[122]. - The company monitors macroeconomic data such as GDP and office vacancy rates to assess opportunities in the non-residential construction market[119]. - The company faces risks from volatility in steel prices, which have significantly increased over the past three years due to various global factors[169]. - The company faces risks related to heavy concentration in consumer products and construction end markets, which could adversely impact sales and cash flows[203]. - The principal raw material is flat-rolled steel, with price fluctuations significantly affecting financial results[205]. Segment Performance - Adjusted EBITDA from continuing operations is used to evaluate segment performance, excluding public company and governance-related costs[130]. - The company’s Consumer Products business includes market-leading brands such as Balloon Time®, Bernzomatic®, and Coleman®, serving retail customers in various categories[159]. - Consumer Products generated approximately 40% of consolidated net sales in fiscal 2024, with sales to the top customer representing about 30% of net sales for this segment[216]. - Building Products accounted for approximately 50% of consolidated net sales in fiscal 2024, servicing around 1,650 customers[220]. - The Building Products segment operates eight facilities across multiple locations, including Kentucky, Maryland, Ohio, Rhode Island, Norway, and Portugal[135]. - The Building Products segment provides pressurized containment solutions, including refrigerant and LPG cylinders, primarily sold to gas producers and distributors[161]. Cash Flow and Capital Structure - Net cash provided by operating activities decreased to $290.0 million in fiscal 2024 from $625.4 million in fiscal 2023[478]. - Net cash used by investing activities increased to $(140.8) million in fiscal 2024 from $(71.8) million in fiscal 2023[478]. - Cash and cash equivalents at the end of fiscal 2024 were $244.2 million, down from $455.0 million at the end of fiscal 2023[478]. - The company redeemed its 2026 Notes for $243.6 million and the 2024 Notes for $150.0 million during fiscal 2024, enhancing its capital structure[480]. - The company maintains a $500.0 million Credit Facility, with no borrowings outstanding as of May 31, 2024[487]. Changes in Assets and Liabilities - Total current assets decreased to $673,893 thousand from $1,868,337 thousand, a decline of approximately 64.0% year-over-year[544]. - Total inventories decreased to $164,615 thousand from $194,499 thousand, representing a reduction of about 15.4%[544]. - Cash and cash equivalents decreased to $244,225 thousand from $422,268 thousand, a decrease of approximately 42.2%[544]. - Total assets decreased to $1,638,637 thousand from $3,650,918 thousand, reflecting a decline of about 55.2%[544]. - Goodwill decreased slightly to $331,595 thousand from $336,178 thousand, a decrease of approximately 1.7%[544]. - Total property, plant, and equipment, net decreased to $227,206 thousand from $256,415 thousand, a decline of about 11.4%[544]. - Accumulated depreciation increased to $251,269 thousand from $323,883 thousand, indicating a decrease in asset value[544]. - Investments in unconsolidated affiliates increased to $144,863 thousand from $138,041 thousand, an increase of approximately 4.0%[544]. - Income taxes receivable increased significantly to $17,319 thousand from $1,681 thousand, a rise of approximately 926.5%[544]. - Other assets increased to $21,342 thousand from $14,339 thousand, representing an increase of about 48.8%[544].
Worthington Industries(WOR_V) - 2024 Q4 - Annual Report