Financial Performance - Net sales for the three months ended February 29, 2024, were $316,755, a decrease of 8.5% compared to $346,315 for the same period in 2023[24] - Gross profit for the nine months ended February 29, 2024, was $206,020, down 10.2% from $229,428 in the prior year[24] - Net earnings from continuing operations for the three months ended February 29, 2024, were $22,000, a decline of 25.5% compared to $29,751 for the same period in 2023[24] - Net earnings for the three months ended February 29, 2024, were $22,000, compared to $50,258 for the same period in 2023, representing a decrease of 56.3%[29] - Net cash provided by operating activities for the nine months ended February 29, 2024, was $244,806, down from $396,130 in the prior year, a decline of 38.2%[29] - The company reported a comprehensive income of $28,323 for the three months ended February 29, 2024, compared to $86,486 for the same period in 2023[26] - Net earnings for the nine months ended February 29, 2024, were $22,000,000, reflecting a decrease from $64,082,000 in the same period of the previous year[69] - Basic EPS from continuing operations for the nine months ended February 29, 2024, was $1.36, down from $1.56 in the prior year, reflecting a 12.8% decline[84] Assets and Liabilities - Total current assets decreased significantly to $691,111 as of February 29, 2024, from $1,868,337 as of May 31, 2023[22] - Total liabilities reduced to $790,247 as of February 29, 2024, compared to $1,829,290 as of May 31, 2023, indicating a decrease of 56.7%[22] - Cash and cash equivalents decreased to $227,310 as of February 29, 2024, from $422,268 as of May 31, 2023, representing a decline of 46.3%[22] - Long-term debt decreased to $297,695 as of February 29, 2024, from $689,718 as of May 31, 2023, a reduction of 56.7%[22] - The company reported a total cash and cash equivalents balance of $227,310 at the end of the period, down from $267,244 at the end of the previous year[29] - Total assets for continuing operations as of February 29, 2024, were $1,704,689, down from $1,890,122 as of May 31, 2023, representing a decrease of approximately 9.8%[92] Dividends and Shareholder Returns - The company declared cash dividends of $0.16 per common share for the three months ended February 29, 2024, down from $0.31 in the same period of 2023[24] - The company reported cash dividends declared of $8,050,000 for the period ending February 29, 2024[69] - The Board declared a quarterly dividend of $0.16 per common share, payable on June 28, 2024, to shareholders of record on June 14, 2024[187] Acquisitions and Investments - The company acquired an 80% controlling interest in a joint venture with HPG for $9,386 on February 1, 2024, focusing on outdoor cooking products[94] - The acquisition of Halo included identifiable intangible assets valued at $4,500, with a trade name valued at $3,500 and a useful life of 10 years[97] - The total identifiable assets acquired in the Halo acquisition were valued at $11,831, with goodwill amounting to $8,294[98] - The company invested $72.2 million in property, plant, and equipment and spent $29.7 million on acquisitions, including a $21.0 million purchase of Voestalpine[178] Debt Management - The company redeemed the 2026 Notes in full on July 28, 2023, at a price approximating the par value of $243,623,000, resulting in a non-cash loss of $1,534,000[65] - The Credit Facility was amended on September 27, 2023, extending the final maturity to September 27, 2028, while maintaining $500,000,000 in aggregate commitments[66] - The company terminated the AR Facility on June 29, 2023, which allowed for short-term borrowings of up to $175,000,000 without incurring any early termination fees[67] - The company redeemed its 2026 Notes for $243.8 million and 2024 Notes for $150.0 million to facilitate its post-Separation capital structure[182] Operational Highlights - The company reported a significant increase in receivables, with a net change of $(18,124) for the three months ended February 29, 2024, compared to a positive change of $3,382 in the same period last year[29] - The company incurred direct and incremental costs associated with the Separation of approximately $30,986 during the nine months ended February 29, 2024[39] - The company recognized impairment charges of $1,401 for long-lived assets during the nine months ended February 29, 2024[42] - The company continues to focus on cost controls while investing in its Sustainable Energy Solutions business despite challenging market conditions[57] Market and Segment Performance - Consumer Products segment net sales increased by 1.9% to $133.2 million, while Building Products segment sales decreased by 19.4% to $148.2 million[142] - The Sustainable Energy Solutions segment reported a net sales increase of 11.3% to $35.4 million compared to $31.8 million in the previous year[142] - Building Products segment reported an adjusted EBITDA of $53.1 million in Q3 fiscal 2024, down $5.0 million from $58.1 million in Q3 fiscal 2023 due to unfavorable product mix[161] - Sustainable Energy Solutions experienced a loss of $2.7 million in adjusted EBITDA for Q3 fiscal 2024, a decline of $2.9 million year-over-year, attributed to low volumes[161] Compliance and Governance - Worthington Enterprises, Inc. is committed to maintaining compliance with the Sarbanes-Oxley Act through regular certifications by its principal officers[208] - The company has established strict counterparty credit guidelines to mitigate counterparty credit risk associated with derivative financial instruments[108] Strategic Initiatives - The company is focusing on market expansion and strategic partnerships as part of its growth strategy[207] - The company is actively pursuing new product development and technological advancements to strengthen its market position[207]
Worthington Industries(WOR_V) - 2024 Q3 - Quarterly Report