Worthington Industries(US:WOR)2025-04-09 18:24Financial Performance - Net sales for the three months ended February 28, 2025, were $304,524, a decrease of 3.9% compared to $316,755 for the same period in 2024[28]. - Gross profit increased to $89,247 for the three months ended February 28, 2025, compared to $73,112 for the same period in 2024, reflecting a gross margin improvement[28]. - Operating income for the three months ended February 28, 2025, was $20,868, significantly higher than $4,281 for the same period in 2024[28]. - Net earnings from continuing operations for the three months ended February 28, 2025, were $39,339, compared to $22,000 for the same period in 2024, representing an increase of 78.5%[28]. - Comprehensive income for the three months ended February 28, 2025, was $37,344, compared to $28,323 for the same period in 2024[30]. - Net earnings for the three months ended February 28, 2025, were $39,339 thousand, a significant increase from $22,000 thousand for the same period in 2024, representing an increase of 79.5%[33]. - Adjusted EPS from continuing operations for the three months ended February 28, 2025, was $0.91, an increase of $0.11 compared to $0.80 in the prior year quarter[122]. - Net earnings for the nine months ended February 28, 2025, were $92,176, compared to $66,763 for the same period in 2024, representing a year-over-year increase of 38.1%[76]. Assets and Liabilities - Total assets increased to $1,682,004 as of February 28, 2025, up from $1,638,637 as of May 31, 2024[26]. - Total current assets decreased to $633,964 as of February 28, 2025, from $673,893 as of May 31, 2024[26]. - Total liabilities decreased to $743,483 as of February 28, 2025, from $747,625 as of May 31, 2024[26]. - The company had no borrowings outstanding under its multi-year revolving Credit Facility as of February 28, 2025, leaving $500 million available for use[65]. - The company’s retained earnings increased to $637.875 million as of February 28, 2025, from $611.974 million at the end of November 2024[67]. Cash Flow and Investments - Net cash provided by operating activities for the nine months ended February 28, 2025, was $147,330 thousand, compared to $244,806 thousand for the same period in 2024, reflecting a decrease of 39.7%[33]. - The company reported a net cash used by investing activities of $115,079 thousand for the nine months ended February 28, 2025, compared to $116,504 thousand for the same period in 2024, indicating a slight decrease of 1.2%[33]. - Cash and cash equivalents at the end of the period were $222,844 thousand as of February 28, 2025, compared to $227,310 thousand as of February 29, 2024, showing a decrease of 2.1%[33]. - The company received a one-time cash dividend of $150 million from Worthington Steel, which was used to pay off the 2024 Notes[110]. Dividends and Share Repurchase - The company declared cash dividends of $0.17 per common share for the three months ended February 28, 2025, compared to $0.16 for the same period in 2024[28]. - The total cash dividends declared during the nine months ended February 28, 2025, were $16,061,000[76]. - The company repurchased a total of 500,000 common shares during the nine months ended February 28, 2025, leaving 5,565,000 shares available for repurchase[69]. Segment Performance - WAVE's net sales for the three months ended February 28, 2025, were $118.357 million, a slight increase from $117.248 million in the same period of 2024, while net earnings decreased to $50.531 million from $51.706 million[58]. - ClarkDietrich reported a significant decline in net sales for the three months ended February 28, 2025, at $271.184 million, down from $316.269 million in 2024, with net earnings dropping to $37.944 million from $71.164 million[58]. - Other segment net sales increased to $70.258 million for the three months ended February 28, 2025, compared to $64.421 million in 2024, but incurred a net loss of $8.432 million[58]. - Total reportable segments net sales for the nine months ended February 28, 2025, were $835.9 million, a slight increase of $0.6 million or 0.1% compared to $835.3 million in the prior year[123]. Economic and Market Conditions - U.S. residential construction spending increased by 1.6% year-over-year to $940.578 billion as of February 28, 2025[118]. - U.S. non-residential construction spending rose by 3.9% year-over-year to $1,255.176 billion as of February 28, 2025[118]. - Existing home sales declined by 2.7% year-over-year to 4.3 million units as of February 2025, indicating persistent supply challenges[118]. - Authorized housing permits decreased by 6.8% year-over-year to 1,456 units, signaling caution among builders[118]. - The Architectural Billings Index (ABI) fell to 45.5 in February 2025, indicating a contraction in demand for architectural services[119]. - The company expects ongoing economic uncertainty and tighter financial conditions to negatively influence consumer purchasing behavior and overall market demand in the near term[114]. Restructuring and Expenses - The company incurred restructuring and other expenses totaling $9.152 million for the nine months ended February 28, 2025, primarily due to early retirement and severance costs[61]. - The total liability associated with restructuring activities as of February 28, 2025, is expected to be paid within the next 12 months, amounting to $402,000[61]. - The company reported restructuring and other expenses of $5,374 million for the three months ended February 28, 2025, compared to $698 million in the same period last year, indicating a significant increase[80]. Risk Management and Controls - The company has established strict counterparty credit guidelines to manage counterparty credit risk associated with derivative financial instruments[92]. - The company maintains effective disclosure controls and procedures, ensuring timely and accurate reporting of required information[165][166]. - Market risks have not materially changed from those disclosed in the 2024 Form 10-K[164]. - The critical accounting estimates have not significantly changed from those discussed in the 2024 Form 10-K[163]. - Worthington Enterprises' risk factors remain consistent with those disclosed in the 2024 Form 10-K, with no significant changes noted[170].