Financial Performance - Net sales for the three months ended November 30, 2024, were $274,046, a decrease of 8.1% compared to $298,229 for the same period in 2023[30]. - Gross profit for the six months ended November 30, 2024, was $136,554, representing an increase of 2.0% from $132,908 in the same period of 2023[30]. - Operating income for the three months ended November 30, 2024, was $3,521, compared to a loss of $14,367 in the same period of 2023[30]. - Net earnings attributable to controlling interest for the six months ended November 30, 2024, were $52,513, down 56.4% from $120,409 in the same period of 2023[30]. - Earnings per share from continuing operations for the three months ended November 30, 2024, were $0.57, an increase of 58.3% from $0.36 in the same period of 2023[30]. - Comprehensive income for the three months ended November 30, 2024, was $24,689, compared to $42,613 for the same period in 2023[33]. - Net earnings for the three months ended November 30, 2024, were $28,009 thousand, a slight decrease from $28,167 thousand in the same period of 2023[36]. - Net earnings for the six months ended November 30, 2024, were $52,513,000, compared to $44,764,000 for the same period in 2023, representing an increase of 17.3%[74]. - The company reported a diluted EPS from continuing operations of $1.04 for the six months ended November 30, 2024, compared to $0.89 for the same period in 2023, indicating a growth of 17%[74]. Assets and Liabilities - Total assets as of November 30, 2024, were $1,657,017, an increase of 1.2% from $1,638,637 as of May 31, 2024[28]. - Total current liabilities decreased to $169,464 as of November 30, 2024, from $178,376 as of May 31, 2024, a reduction of 5.1%[28]. - Cash and cash equivalents decreased to $193,805 as of November 30, 2024, from $244,225 as of May 31, 2024, a decline of 20.6%[28]. - Total assets as of November 30, 2024, were $971.14 million, a decrease from $1,001.47 million as of May 31, 2024[56]. - Current liabilities decreased to $212.81 million as of November 30, 2024, from $264.96 million as of May 31, 2024[56]. - The balance of retained earnings increased to $1,516,657,000 as of November 30, 2024, from $1,428,391,000 at May 31, 2023[67]. - The company’s total assets reached $1,923,967,000 as of November 30, 2024, reflecting an increase from $1,821,628,000 at May 31, 2023[67]. Cash Flow and Investments - Net cash provided by operating activities for the six months ended November 30, 2024, was $90,199 thousand, compared to $194,686 thousand for the same period in 2023, reflecting a decrease of approximately 53.7%[36]. - The company reported a net cash used by investing activities of $101,601 thousand for the six months ended November 30, 2024[36]. - The investment in property, plant, and equipment for the three months ended November 30, 2024, was $15,161 thousand[36]. - Cash and cash equivalents at the end of the period were $193,805 thousand, down from $430,906 thousand at the end of the previous year[36]. - Net cash used in investing activities was $101.6 million, driven by the acquisition of Ragasco and capital expenditures[154]. Shareholder Activities - Cash dividends declared totaled $8.55 million for the three months ended November 30, 2024[66]. - The company repurchased a total of 350,000 common shares during the six months ended November 30, 2024, leaving 5,715,000 shares available for repurchase[68]. - The company repurchased 350,000 shares for $14.9 million at an average price of $42.52 during the six months ended November 30, 2024[106]. - The Board declared a quarterly dividend of $0.17 per common share, payable on March 28, 2025[157]. Acquisitions and Restructuring - The company acquired Ragasco for a total purchase price of $101,424 million, with an additional contingent consideration of up to $14,000 million based on earnings targets[80]. - The company incurred separation costs of $14,895 thousand for the three months ended November 30, 2023, related to the spin-off of Worthington Steel[49]. - Restructuring and other expenses totaled $3.8 million for the six months ended November 30, 2024, compared to $9.5 million in separation costs in the prior year[137]. Market and Economic Conditions - U.S. residential construction spending increased by $28.4 billion year-over-year to $918.1 billion as of November 30, 2024[109]. - The average price of hot-rolled steel decreased by $57 per ton to $690, while cold-rolled steel prices fell by $40 per ton to $938[109]. - The Dodge Momentum Index decreased by 2.3% from October 2024, indicating a pullback in planned projects[112]. - The HMI rose by 12 points year-over-year to 46.0, suggesting resilience in the residential construction market despite economic challenges[111]. - The Core CPI increased by 3.30% compared to the previous year, indicating ongoing inflationary pressures affecting consumer spending[114]. Risk Management and Controls - The company utilizes derivative financial instruments to manage risks related to interest rates, foreign currency exchange, and commodity prices, adjusting these instruments to current fair value through earnings[84]. - The company has established strict counterparty credit guidelines to manage counterparty credit risk associated with derivative financial instruments[88]. - The company maintains effective disclosure controls and procedures, ensuring timely and accurate reporting of required information[166]. - The risk factors affecting the company have not changed significantly from those disclosed in the 2024 Form 10-K[170]. Other Financial Metrics - Adjusted EBITDA from continuing operations for the three months ended November 30, 2024, was $56,213 million, compared to $55,044 million for the same period in 2023, reflecting a 2.1% increase[78]. - Adjusted EPS from continuing operations increased to $0.60, up from $0.57 in the prior year, reflecting a growth of 5.3%[118]. - Gross profit for Q2 fiscal 2025 was $74.1 million, an increase of $10.8 million, or 17.1% from Q2 fiscal 2024, driven by improved spread and higher volume in Consumer Products[122]. - SG&A expenses decreased by $2.7 million, or 3.8%, from Q2 fiscal 2024, primarily due to the elimination of certain corporate overhead costs, partially offset by a $2.8 million increase from the acquisition of Ragasco[123].
Worthington Industries(WOR_V) - 2025 Q2 - Quarterly Report