Financial Performance - Net sales for the three months ended November 30, 2023, were $1,086,918, a decrease of 7.5% compared to $1,175,541 for the same period in 2022[18]. - Gross margin increased to $123,714 for the three months ended November 30, 2023, compared to $105,763 in the prior year, reflecting a gross margin percentage improvement[18]. - Net earnings attributable to controlling interest for the six months ended November 30, 2023, were $120,409, up 50% from $80,300 in the same period of 2022[18]. - Earnings per common share attributable to controlling interest for the three months ended November 30, 2023, was $0.49, compared to $0.33 for the same period in 2022, representing a 48.5% increase[18]. - Net earnings for the three months ended November 30, 2023, were $28,167,000, compared to $19,505,000 for the same period in 2022, representing a 44.5% increase[23]. - Net earnings for the six months ended November 30, 2023, were $266,236, an increase of 11.7% from $238,421 in the prior year[39]. - Adjusted EBIT for the three months ended November 30, 2023, was $52,849,000, compared to $35,300,000 for the same period in 2022, indicating a 49.9% increase[71]. - Adjusted EBIT for the six months ended November 30, 2023, was $189.3 million, an increase of $41.7 million from $147.6 million in the prior year[171]. Assets and Liabilities - Total current assets decreased to $1,772,603 as of November 30, 2023, from $1,868,337 as of May 31, 2023, a decline of 5.1%[16]. - Total liabilities decreased to $1,660,170 as of November 30, 2023, from $1,829,290 as of May 31, 2023, a reduction of 9.2%[16]. - Total assets decreased to $3,584,137 as of November 30, 2023, from $3,650,918 as of May 31, 2023, a decline of 1.8%[16]. - Total long-term debt as of November 30, 2023, was $298,549, significantly reduced from $689,718 as of May 31, 2023[48]. - The total long-term debt fair value was $391,947,000 as of November 30, 2023, compared to $639,948,000 as of May 31, 2023[107]. Cash Flow and Dividends - Cash and cash equivalents were $430,906 as of November 30, 2023, down from $454,946 as of May 31, 2023, a decrease of 5.3%[16]. - Total net cash provided by operating activities for the six months ended November 30, 2023, was $194,686,000, compared to $213,979,000 for the same period in 2022, a decrease of 9.0%[23]. - The company declared cash dividends of $0.32 per common share for the three months ended November 30, 2023, compared to $0.31 in the same period of 2022[18]. - A quarterly dividend of $0.16 per share was declared, payable on March 29, 2024, to shareholders of record on March 15, 2024[184]. - The company has maintained a consistent dividend payment since going public in 1968, but future payments are not guaranteed[188]. Segment Performance - Steel Processing segment net sales for the three months ended November 30, 2023, were $788,655,000, down 6.3% from $841,947,000 in the same period of 2022[31]. - Consumer Products segment net sales for the three months ended November 30, 2023, were $147,738,000, a decrease of 3.9% from $153,795,000 in the same period of 2022[31]. - The Building Products segment achieved net sales of $122,954,000 for the three months ended November 30, 2023, down from $141,671,000 in the same period of 2022, a decline of 13.2%[71]. - The Sustainable Energy Solutions segment reported a net loss of $2,617,000 for the three months ended November 30, 2023, compared to a profit of $1,143,000 in the same period of 2022[71]. - Steel Processing segment reported adjusted EBIT of $6.8 million, up $24.0 million from a loss of $17.2 million in the prior year quarter[152]. Separation and Acquisitions - The company completed the Separation of the Steel Processing Business on December 1, 2023, distributing shares of Worthington Steel to shareholders on a one-for-one basis[27]. - The company recognized a pre-tax gain of $2,780,000 within equity income from the sale of Workhorse's operations in Brazil during the second quarter of fiscal 2024[36]. - The company acquired Voestalpine Automotive Components Nagold GmbH & Co. KG for a total cash consideration of $21,013,000, with an additional $929,000 pension liability assumed[76]. - The total identifiable assets acquired from Level5 amounted to $47,830,000, with goodwill of $15,947,000, resulting in a total purchase price of $59,472,000[86]. Risk Management and Legal Proceedings - The company has entered into derivative financial instruments to manage interest rate risk, foreign currency exchange rate risk, and commodity price risk[87]. - The company is involved in various legal proceedings but does not expect any material adverse effects on its financial position or operations[195]. - Risk factors have not changed significantly from those disclosed in the 2023 Form 10-K, which could materially affect the company's future results[196]. Other Financial Metrics - The estimated annual effective income tax rate for the three months ended November 30, 2023, was 23.4%, slightly lower than 23.7% for the same period in 2022[61]. - The company recognized a gain of $14,985,000 in other comprehensive income (OCI) for cash flow hedges during the three months ended November 30, 2023[96]. - The company reported a net earnings attributable to noncontrolling interests of $3,865 for the three months ended November 30, 2023[61]. - The balance of accumulated other comprehensive income (OCI) improved to $(14,141) as of November 30, 2023, from $(23,179) on May 31, 2023[57].
Worthington Industries(WOR_V) - 2024 Q2 - Quarterly Report