Financial Performance - Net sales for Q2 fiscal 2025 were $274.0 million, a decrease of 8.1% from $298.2 million in Q2 fiscal 2024, primarily due to the deconsolidation of the former Sustainable Energy Solutions segment[2][4] - Adjusted EPS from continuing operations increased by 5% to $0.60, while adjusted EBITDA rose by 2% to $56.2 million despite lower net sales[2][3] - Operating income improved to $3.5 million, a favorable change of $17.9 million compared to the operating loss of $14.4 million in the prior year quarter[5] - Net earnings from continuing operations for the three months ended November 30, 2024, were $28,009 thousand, up from $17,934 thousand in the same period in 2023, representing a year-over-year increase of 56.4%[23] - The company reported a net earnings attributable to controlling interest of $28,260 thousand for the three months ended November 30, 2024, compared to $24,302 thousand in the same period last year, marking a 12.1% increase[23] - Non-GAAP net earnings for the three months ended November 30, 2024, were $28,514,000, compared to $17,934,000 for the same period in 2023, an increase of 58.8%[29] Segment Performance - Consumer Products segment net sales were $116.7 million, down 2.2% year-over-year, while adjusted EBITDA increased by $2.8 million to $15.5 million[10] - Building Products segment net sales increased by 4.0% to $157.3 million, with adjusted EBITDA rising by $1.4 million to $47.2 million, driven by contributions from Ragasco[11] - Consumer Products segment net sales for the three months ended November 30, 2024, were $116,748 million, down from $119,389 million year-over-year[34] - Building Products segment net sales for the three months ended November 30, 2024, were $157,298 million, compared to $151,303 million in the prior year, indicating an increase of 4.0%[34] - Adjusted EBITDA margin for the Consumer Products segment improved to 13.3% from 10.6% year-over-year[34] Cash and Debt Management - The company ended the quarter with cash of $193.8 million, down $50.4 million from the previous quarter, primarily due to the acquisition of Ragasco[8] - Total debt remained stable at $295.7 million, with no borrowings under the revolving credit facility, leaving $500.0 million available for future use[9] - Cash and cash equivalents at the end of the period were $193,805,000, down from $430,906,000, a decrease of 55.0%[27] - Long-term debt decreased slightly from $298,133,000 to $295,721,000, a reduction of 0.5%[25] Dividends and Shareholder Returns - The company declared a quarterly dividend of $0.17 per share, payable on March 28, 2025[2] - Cash dividends declared per share were $0.17 for the three months ended November 30, 2024, compared to $0.32 for the same period in 2023[23] Operational Challenges and Risks - The company continues to face risks related to economic conditions, supply chain constraints, and regulatory changes that could impact future performance[20] - The company incurred separation costs of $7,056 thousand in the three months ended November 30, 2023, which were not present in the current quarter[23] Asset and Liability Management - Total current assets decreased from $673,893,000 to $602,999,000, a decline of approximately 10.5%[25] - Total liabilities decreased from $747,625,000 to $744,059,000, a slight reduction of 0.5%[25] - Total assets increased from $1,638,637,000 to $1,657,017,000, an increase of approximately 1.1%[25] - The company reported a net cash used by investing activities of $12,854,000 for the three months ended November 30, 2024, compared to $53,553,000 in the same period last year, a decrease of 76.0%[27] Non-GAAP Financial Metrics - GAAP operating income for the three months ended November 30, 2024, was $3,521 million, with a diluted EPS from continuing operations of $0.56[31] - Non-GAAP adjusted EBITDA from continuing operations for the six months ended November 30, 2024, was $104,649 million, reflecting a margin of 19.7%[36] - The company incurred restructuring and other expenses of $2,620 million for the three months ended November 30, 2024[36] - Impairment charges are excluded from financial results as they are non-cash and unpredictable in timing and amount, facilitating better comparison of financial data[40] - Restructuring activities, including divestitures and employee severance, are excluded as they are not part of ongoing operations[40] - Separation costs related to the completed Separation are excluded due to their one-time nature, including fees for third-party advisors and incremental compensation expenses[40] - Loss on early extinguishment of debt is excluded as it does not occur in normal business operations and can obscure financial performance analysis[40] - Corporate costs eliminated at Separation are those that no longer exist to support continuing operations post-Separation[40]
Worthington Industries(WOR_V) - 2024 Q3 - Quarterly Results