Latest news with #JoeHayek
Yahoo
24-06-2025
- Business
- Yahoo
Worthington (NYSE:WOR) Delivers Impressive Q2, Stock Soars
Diversified industrial manufacturing company Worthington (NYSE:WOR) announced better-than-expected revenue in Q2 CY2025, but sales were flat year on year at $317.9 million. Its non-GAAP profit of $1.06 per share was 25.6% above analysts' consensus estimates. Is now the time to buy Worthington? Find out in our full research report. Revenue: $317.9 million vs analyst estimates of $301.1 million (flat year on year, 5.6% beat) Adjusted EPS: $1.06 vs analyst estimates of $0.84 (25.6% beat) Adjusted EBITDA: $85.06 million vs analyst estimates of $69.77 million (26.8% margin, 21.9% beat) Operating Margin: -9.6%, up from -17.6% in the same quarter last year Free Cash Flow Margin: 15.5%, up from 10.6% in the same quarter last year Market Capitalization: $2.96 billion 'We closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow,' said Worthington Enterprises President and CEO Joe Hayek. Founded by a steel salesman, Worthington (NYSE:WOR) specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. A company's long-term performance is an indicator of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Worthington's demand was weak over the last five years as its sales fell at a 17.7% annual rate. This was below our standards and suggests it's a low quality business. We at StockStory place the most emphasis on long-term growth, but within industrials, a half-decade historical view may miss cycles, industry trends, or a company capitalizing on catalysts such as a new contract win or a successful product line. Worthington's recent performance shows its demand remained suppressed as its revenue has declined by 40.9% annually over the last two years. Worthington isn't alone in its struggles as the Engineered Components and Systems industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time. Worthington also breaks out the revenue for its most important segments, Consumer Products and Building Products, which are 39.5% and 60.5% of revenue. Over the last two years, Worthington's Consumer Products revenue (cylinders, torches, balloon kits, tools) averaged 8.9% year-on-year declines. On the other hand, its Building Products revenue (refrigerant, cylinders, tanks) averaged 1.3% growth. This quarter, Worthington's $317.9 million of revenue was flat year on year but beat Wall Street's estimates by 5.6%. Looking ahead, sell-side analysts expect revenue to grow 2% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector. Software is eating the world and there is virtually no industry left that has been untouched by it. That drives increasing demand for tools helping software developers do their jobs, whether it be monitoring critical cloud infrastructure, integrating audio and video functionality, or ensuring smooth content streaming. Click here to access a free report on our 3 favorite stocks to play this generational megatrend. Operating margin is one of the best measures of profitability because it tells us how much money a company takes home after procuring and manufacturing its products, marketing and selling those products, and most importantly, keeping them relevant through research and development. Worthington was profitable over the last five years but held back by its large cost base. Its average operating margin of 3.5% was weak for an industrials business. This result isn't too surprising given its low gross margin as a starting point. Analyzing the trend in its profitability, Worthington's operating margin decreased by 6.2 percentage points over the last five years. Worthington's performance was poor no matter how you look at it - it shows that costs were rising and it couldn't pass them onto its customers. This quarter, Worthington generated an operating margin profit margin of negative 9.6%, up 8 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead. Revenue trends explain a company's historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions. Worthington's EPS grew at an unimpressive 4.1% compounded annual growth rate over the last five years. This performance was better than its 17.7% annualized revenue declines but doesn't tell us much about its business quality because its operating margin didn't improve. Diving into the nuances of Worthington's earnings can give us a better understanding of its performance. A five-year view shows that Worthington has repurchased its stock, shrinking its share count by 9.4%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business. For Worthington, its two-year annual EPS declines of 27.4% show it's continued to underperform. These results were bad no matter how you slice the data. In Q2, Worthington reported EPS at $1.06, up from $0.74 in the same quarter last year. This print easily cleared analysts' estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Worthington's full-year EPS of $3.07 to grow 8.2%. We were impressed by how significantly Worthington blew past analysts' EPS and EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates. Zooming out, we think this was a solid print. The stock traded up 6.3% to $63.95 immediately after reporting. Indeed, Worthington had a rock-solid quarterly earnings result, but is this stock a good investment here? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
24-06-2025
- Business
- Yahoo
Worthington Enterprises Reports Fourth Quarter Fiscal 2025 Results
COLUMBUS, Ohio, June 24, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today reported results for its fiscal 2025 fourth quarter ended May 31, 2025. Recent Developments and Fourth Quarter Highlights (all comparisons to the fourth quarter of fiscal 2024): Net sales were $317.9 million, a decrease of 0.3%, reflecting the deconsolidation of the former Sustainable Energy Solutions segment ('SES'), nearly offset by volume growth and contributions from the Ragasco business acquired in the first quarter of fiscal 2025. Net earnings from continuing operations increased 111% to $3.6 million, while adjusted EBITDA from continuing operations grew 35% to $85.1 million. Earnings per share ('EPS') from continuing operations (diluted) improved from a loss of $(0.64) to $0.08 per share, while adjusted EPS from continuing operations (diluted) increased from $0.74 to $1.06 per share. Operating cash flow increased 38% to $62.4 million, while free cash flow increased 46% to $49.3 million. Repurchased 200,000 shares of common stock for $9.8 million, leaving 5,365,000 shares remaining on the Company's share repurchase authorization. Declared a quarterly dividend of $0.19 per share payable on September 29, 2025, to shareholders of record at the close of business on September 15, 2025, a 12% increase, or $0.02 per share, compared to the prior quarter. Acquired Elgen Manufacturing, a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial buildings throughout North America. The acquisition closed on June 19, 2025, for approximately $93 million, subject to closing adjustments. 'We closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow,' said Worthington Enterprises President and CEO Joe Hayek. 'Consumer Products continued to perform well in a dynamic environment, driven by disciplined cost management and effective execution, while Building Products delivered robust top- and bottom-line growth, supported by improved volumes and steady contributions from WAVE and ClarkDietrich. Our results reflect the efforts of exceptional teams across our Company delivering value for shareholders. I want to thank all of our employees across the globe for their continued hard work and commitment to serving our customers.' Financial highlights for the fiscal 2025 and fiscal 2024 fourth quarters are as follows: (U.S. dollars in millions, except per share amounts) 4Q 2025 4Q 2024 GAAP Financial Measures Net sales $ 317.9 $ 318.8 Operating loss (30.4 ) (56.1 ) Earnings (loss) before income taxes 8.3 (26.8 ) Net earnings (loss) from continuing operations 3.9 (31.5 ) EPS from continuing operations - diluted 0.08 (0.64 ) Net cash provided by operating activities 62.4 45.2 Non-GAAP Financial Measures(1) Adjusted operating income $ 21.8 $ 5.8 Adjusted EBITDA from continuing operations 85.1 63.2 Adjusted EPS from continuing operations - diluted 1.06 0.74 Free cash flow 49.3 33.8 ________________________________ (1) Refer to the 'Use of Non-GAAP Financial Measures and Definitions' section of this release for additional information regarding our use of non-GAAP financial measures, including reconciliations to the most comparable GAAP measures. Consolidated Quarterly Results Net sales for the fourth quarter of fiscal 2025 were down slightly from the prior year quarter to $317.9 million as the impact of the deconsolidation of SES effective May 29, 2024, was nearly offset by higher overall volumes and contributions from the Ragasco acquisition. Net sales in the prior year quarter included $39.9 million related to SES, which is now operated as an unconsolidated joint venture and its results are reported within equity income on the consolidated statement of earnings beginning June 1, 2024. The operating loss of $30.4 million represented a $25.6 million improvement over the prior year quarter. Results in both the fiscal 2025 and prior year fourth quarters included nonrecurring items totaling $52.2 million and $61.8 million, respectively, primarily resulting from the non-cash write-down of intangible assets in the General Tools & Instruments ('GTI') business in the fiscal 2025 fourth quarter and the deconsolidation of the SES business in the prior year quarter. Excluding these items, adjusted operating income increased $16.0 million to $21.8 million on the impact of higher overall volume, particularly within the Building Products segment. Equity income increased $2.3 million from the prior year quarter to $42.7 million, driven by higher contributions from WAVE and ClarkDietrich, which were up a combined $6.4 million over the prior year quarter. This was partially offset by a loss at the SES joint venture, which included a $3.4 million non-cash impairment charge that reduced equity income in the quarter. Income tax expense was down slightly to $4.7 million, as the impact of discrete items in both periods more than offset higher pre-tax earnings from continuing operations. Income tax expense in the fourth quarter of fiscal 2025 reflects an annual effective rate of 26.1% compared to 52.6% in the prior year, which was impacted by discrete items related to the deconsolidation of the SES business. On an adjusted basis, the annual effective tax rate was 23.0% compared to 23.5% in the prior year. Balance Sheet and Cash Flow The Company ended the quarter with cash of $250.1 million, an increase of $5.9 million from May 31, 2024. During the fourth quarter, the Company generated operating cash flow of $62.4 million, of which $13.1 million was invested in capital expenditures, resulting in free cash flow of $49.3 million, up from $33.8 million in the prior year quarter. Capital expenditures in the fiscal 2025 fourth quarter included approximately $7.7 million related to ongoing facility modernization projects. Total debt at quarter end was $302.9 million, consisting entirely of long-term debt, and increased $4.7 million from May 31, 2024, primarily due to the remeasurement of the Company's euro-denominated notes. The Company had no borrowings under its revolving credit facility as of May 31, 2025, leaving $500.0 million available for future use. Quarterly Segment Results Consumer Products generated net sales of $125.6 million, essentially flat compared to the prior year quarter, on slightly higher volume. Adjusted EBITDA increased $3.7 million over the prior year quarter to $20.8 million, driven by lower SG&A expenses and favorable product mix. Building Products generated net sales of $192.3 million in the fiscal 2025 fourth quarter, an increase of $38.8 million, or 25.2%, over the prior year quarter. Growth was driven by higher overall volumes and contributions from the Ragasco acquisition. Adjusted EBITDA increased $19.6 million over the prior year quarter to $71.3 million on the impact of higher net sales and higher equity income contributions from WAVE and ClarkDietrich. Outlook 'Heading into fiscal 2026, we are confident in our ability to continue to drive sustainable growth and long-term value,' Hayek said. 'Our recent acquisition of Elgen Manufacturing reflects our growth strategy of building and acquiring businesses with leadership positions in niche markets. Leveraging our people first performance-based culture, the Worthington Business System and a strong balance sheet, our teams are very well positioned to continue leading the way by focusing on innovative solutions that elevate spaces and experiences." Conference Call The Company will review fiscal 2025 fourth quarter results during its quarterly conference call on June 25, 2025, at 8:30 a.m. Eastern Time. Details regarding the conference call can be found on the Company website at About Worthington Enterprises Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others. Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit Safe Harbor Statement Selected statements contained in this release constitute 'forward-looking statements,' as that term is used in the Private Securities Litigation Reform Act of 1995 (the 'Act'). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as 'believe,' 'expect,' 'anticipate,' 'may,' 'could,' 'should,' 'would,' 'intend,' 'plan,' 'will,' 'likely,' 'estimate,' 'project,' 'position,' 'strategy,' 'target,' 'aim,' 'seek,' 'foresee' and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the separation of the Company's Steel Processing business (the 'Separation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company's performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company's operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus ('COVID-19') pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company's ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic – the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof – and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company's products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of the COVID-19 pandemic and Russia's invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia's invasion of Ukraine), terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia's invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company's products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact the Company's operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company's markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company's ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Company's healthcare and other costs and negatively impact the Company's operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company's costs and negatively impact the Company's operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in 'Part I – Item 1A. – Risk Factors' of the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2024. Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. WORTHINGTON ENTERPRISES, STATEMENTS OF EARNINGS(In thousands, except per share amounts) Three Months Ended Twelve Months Ended May 31, May 31, 2025 2024 2025 2024 Net sales $ 317,884 $ 318,801 $ 1,153,762 $ 1,245,703 Cost of goods sold 224,650 239,802 834,727 960,684 Gross profit 93,234 78,999 319,035 285,019 Selling, general and administrative expense 71,454 73,210 268,413 283,471 Impairment of goodwill and long-lived assets 50,813 32,975 50,813 32,975 Restructuring and other expense, net 1,372 28,624 10,524 29,327 Separation costs - 240 - 12,705 Operating loss (30,405 ) (56,050 ) (10,715 ) (73,459 ) Other income (expense): Miscellaneous expense, net (4,031 ) (11,145 ) (3,222 ) (17,129 ) Loss on extinguishment of debt - - - (1,534 ) Interest income (expense), net 60 9 (2,090 ) (1,587 ) Equity in net income of unconsolidated affiliates 42,707 40,388 144,836 167,716 Earnings (loss) before income taxes 8,331 (26,798 ) 128,809 74,007 Income tax expense 4,717 4,986 33,839 39,027 Net earnings (loss) from continuing operations 3,614 (31,784 ) 94,970 34,980 Net earnings (loss) from discontinued operations - (265 ) - 82,841 Net earnings (loss) 3,614 (32,049 ) 94,970 117,821 Net earnings (loss) attributable to noncontrolling interests (263 ) (263 ) (1,083 ) 7,197 Net earnings (loss) attributable to controlling interest $ 3,877 $ (31,786 ) $ 96,053 $ 110,624 Amounts attributable to controlling interest: Net earnings (loss) from continuing operations $ 3,877 $ (31,521 ) $ 96,053 $ 35,243 Net earnings (loss) from discontinued operations - (265 ) - 75,381 Net earnings (loss) attributable to controlling interest $ 3,877 $ (31,786 ) $ 96,053 $ 110,624 Earnings (loss) per share - basic: Continuing operations $ 0.08 $ (0.64 ) $ 1.94 $ 0.72 Discontinued operations - (0.01 ) - 1.53 Consolidated $ 0.08 $ (0.65 ) $ 1.94 $ 2.25 Earnings (loss) per share - diluted: Continuing operations $ 0.08 $ (0.64 ) $ 1.92 $ 0.70 Discontinued operations - (0.01 ) - 1.50 Consolidated $ 0.08 $ (0.65 ) $ 1.92 $ 2.20 Weighted average common shares outstanding - basic 49,253 49,437 49,395 49,195 Weighted average common shares outstanding - diluted 49,997 49,437 50,131 50,348 Cash dividends declared per share $ 0.17 $ 0.16 $ 0.68 $ 0.96 CONSOLIDATED BALANCE SHEETSWORTHINGTON ENTERPRISES, INC.(In thousands) May 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 250,075 $ 244,225 Receivables, less allowances of $907 and $343, respectively 215,824 199,798 Inventories Raw materials 80,522 66,040 Work in process 9,408 11,668 Finished products 79,463 86,907 Total inventories 169,393 164,615 Income taxes receivable 12,720 17,319 Prepaid expenses and other current assets 37,358 47,936 Total current assets 685,370 673,893 Investment in unconsolidated affiliates 129,262 144,863 Operating lease assets 22,699 18,667 Goodwill 376,480 331,595 Other intangibles, net of accumulated amortization of $88,887 and $83,242, respectively 190,398 221,071 Other assets 20,717 21,342 Property, plant and equipment: Land 8,703 8,657 Buildings and improvements 132,742 123,478 Machinery and equipment 372,798 321,836 Construction in progress 33,326 24,504 Total property, plant and equipment 547,569 478,475 Less: accumulated depreciation 277,343 251,269 Total property, plant and equipment, net 270,226 227,206 Total assets $ 1,695,152 $ 1,638,637 Liabilities and equity Current liabilities: Accounts payable $ 103,205 $ 91,605 Accrued compensation, contributions to employee benefit plans and related taxes 43,864 41,974 Dividends payable 9,172 9,038 Other accrued items 34,478 29,061 Current operating lease liabilities 6,014 6,228 Income taxes payable 109 470 Total current liabilities 196,842 178,376 Other liabilities 53,364 62,243 Distributions in excess of investment in unconsolidated affiliate 103,767 111,905 Long-term debt 302,868 298,133 Noncurrent operating lease liabilities 17,173 12,818 Deferred income taxes 82,901 84,150 Total liabilities 756,915 747,625 Shareholders' equity - controlling interest 937,187 888,879 Noncontrolling interests 1,050 2,133 Total equity 938,237 891,012 Total liabilities and equity $ 1,695,152 $ 1,638,637 WORTHINGTON ENTERPRISES, STATEMENTS OF CASH FLOWS(In thousands) Three Months Ended Twelve Months Ended May 31, May 31, 2025 2024 2025 2024 Operating activities: Net earnings (loss) $ 3,614 $ (32,049 ) $ 94,970 $ 117,821 Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation and amortization 12,555 12,423 48,262 80,704 Impairment of goodwill and long-lived assets 50,813 32,975 50,813 34,377 Provision for (benefit from) deferred income taxes (7,568 ) 1,919 (18,439 ) 2,762 Impairment of investment in note receivable 5,000 11,170 5,000 11,170 Loss on extinguishment of debt - - - 1,534 Bad debt expense (income) (31 ) (21 ) 3,158 (450 ) Equity in net income of unconsolidated affiliates, net of distributions (2,041 ) 2,552 8,769 5,722 Net loss on sale of assets 824 29,329 277 28,980 Stock-based compensation 3,399 3,394 16,186 16,688 Changes in assets and liabilities, net of impact of acquisitions: Receivables (13,238 ) 342 (22,261 ) 50,078 Inventories (4,058 ) 8,597 11,500 63,596 Accounts payable 13,219 (5,866 ) 619 (65,401 ) Accrued compensation and employee benefits 6,435 2,498 1,807 468 Other operating items, net (6,509 ) (22,094 ) 9,083 (58,073 ) Net cash provided by operating activities 62,414 45,169 209,744 289,976 Investing activities: Investment in property, plant and equipment (13,086 ) (11,336 ) (50,580 ) (83,527 ) Acquisitions, net of cash acquired (6,862 ) (12,315 ) (95,018 ) (42,035 ) Proceeds from sale of assets, net of selling costs 11 28 13,455 865 Investment in non-marketable equity securities (85 ) (681 ) (2,958 ) (2,296 ) Investment in note receivable - - - (14,900 ) Excess distribution from unconsolidated affiliate - - - 1,085 Net cash used by investing activities (20,022 ) (24,304 ) (135,101 ) (140,808 ) Financing activities: Dividends paid (8,396 ) (7,911 ) (33,903 ) (56,819 ) Repurchase of common shares (9,831 ) - (30,883 ) - Proceeds from issuance of common shares, net of tax withholdings 3,066 3,961 (4,007 ) (11,399 ) Net proceeds from short-term borrowings(1) - - - 172,187 Distribution to Worthington Steel at Separation - - - (218,048 ) Principal payments on long-term obligations - - - (393,890 ) Dividends from Worthington Steel at Separation - - - 150,000 Payments to noncontrolling interests - - - (1,920 ) Net cash used by financing activities (15,161 ) (3,950 ) (68,793 ) (359,889 ) Increase (decrease) in cash and cash equivalents 27,231 16,915 5,850 (210,721 ) Cash and cash equivalents at beginning of period 222,844 227,310 244,225 454,946 Cash and cash equivalents at end of period(2) $ 250,075 $ 244,225 $ 250,075 $ 244,225 ________________________________ (1) Net proceeds in fiscal 2024 consisted of borrowings under Worthington Steel's short-term credit facilities assumed by Worthington Steel in conjunction with the Separation. (2) The cash flows related to discontinued operations have not been segregated in the periods presented herein. Accordingly, the consolidated statements of cash flows include the results from continuing and discontinued operations. WORTHINGTON ENTERPRISES, INFORMATION(Dollars and units in thousands) Three Months Ended Twelve Months Ended May 31, May 31, 2025 2024 2025 2024 Volume Consumer Products 15,725 15,660 69,076 66,632 Building Products 4,252 3,579 14,234 14,157 Total reportable segments 19,977 19,239 83,310 80,789 Other(1) - 160 - 523 Consolidated 19,977 19,399 83,310 81,312 Net sales Consumer Products $ 125,568 $ 125,336 $ 499,625 $ 495,259 Building Products 192,316 153,551 654,137 618,973 Total reportable segments 317,884 278,887 1,153,762 1,114,232 Other(1) - 39,914 - 131,471 Consolidated $ 317,884 $ 318,801 $ 1,153,762 $ 1,245,703 Adjusted EBITDA from continuing operations Consumer Products $ 20,791 $ 17,061 $ 82,676 $ 69,598 Building Products 71,253 51,628 211,354 210,128 Total reportable segments 92,044 68,689 294,030 279,726 Other 638 2,603 (2,672 ) (3,315 ) Unallocated Corporate (7,622 ) (8,124 ) (27,869 ) (25,412 ) Consolidated $ 85,060 $ 63,168 $ 263,489 $ 250,999 Adjusted EBITDA margin from continuing operations Consumer Products 16.6 % 13.6 % 16.5 % 14.1 % Building Products 37.0 % 33.6 % 32.3 % 33.9 % Consolidated 26.8 % 19.8 % 22.8 % 20.1 % Equity income by unconsolidated affiliate(2) WAVE $ 32,622 $ 27,534 $ 110,100 $ 103,298 ClarkDietrich 12,836 11,560 40,795 59,827 Other (2,751 ) 1,294 (6,059 ) 4,591 Consolidated $ 42,707 $ 40,388 $ 144,836 $ 167,716 ________________________________ (1) Amounts relate to our former SES operating segment, which was deconsolidated on May 29, 2024. (2) Equity income contributed by WAVE and ClarkDietrich is included in the Building Products segment results. Other includes the equity earnings of Taxi Workhorse, LLC and the SES joint venture in periods subsequent to its deconsolidation on May 29, 2024. WORTHINGTON ENTERPRISES, / NON-GAAP RECONCILIATIONS (1) (Dollars in thousands, except per share amounts) Consolidated Results - Adjusted Earnings per Share from Continuing Operations - Diluted Three Months Ended May 31, 2025 Earnings Operating Before Income DilutedEPS – Effective Income Income Tax Continuing Tax (Loss) Taxes Expense Net Earnings(2) Operations(2) Rate(2) GAAP $ (30,405 ) $ 8,331 $ 4,717 $ 3,877 $ 0.08 54.9 % Impairment of long-lived assets 50,813 50,813 (10,387 ) 40,426 0.81 Restructuring and other expense, net 1,372 1,372 (164 ) 1,208 0.02 Non-cash charges in miscellaneous expense, net - 5,000 - 5,000 0.10 Non-recurring loss in equity income - 3,387 (801 ) 2,586 0.05 Non-GAAP $ 21,780 $ 68,903 $ 16,069 $ 53,097 $ 1.06 23.2 % Three Months Ended May 31, 2024 Earnings Net Earnings (Loss) (Loss) Diluted Operating Before Income from EPS - Effective Income Income Tax Continuing Continuing Tax (Loss) Taxes Expense Operations(2) Operations(2) Rate(2) GAAP $ (56,050 ) $ (26,798 ) $ 4,986 $ (31,521 ) $ (0.64 ) (18.8 %) Impairment of goodwill and long-lived assets 32,975 32,975 - 32,975 0.66 Restructuring and other expense, net 28,624 28,624 (4,609 ) 24,015 0.48 Separation costs 240 240 (81 ) 159 - Non-cash charges in miscellaneous expense, net - 11,077 7 11,084 0.22 Pension settlement charge in equity income - 1,040 (244 ) 796 0.02 Non-GAAP $ 5,789 $ 47,158 $ 9,913 $ 37,508 $ 0.74 20.9 % Twelve Months Ended May 31, 2025 Earnings Diluted Operating Before Income EPS – Effective Income Income Tax Continuing Tax (Loss) Taxes Expense Net Earnings(2) Operations(2) Rate(2) GAAP $ (10,715 ) $ 128,809 $ 33,839 $ 96,053 $ 1.92 26.1 % Impairment of long-lived assets 50,813 50,813 (10,387 ) 40,426 0.81 Restructuring and other expense, net 10,524 10,524 (796 ) 9,728 0.19 Non-cash charges in miscellaneous expense, net - 5,000 - 5,000 0.10 Non-recurring loss in equity income - 3,387 (801 ) 2,586 0.05 Non-GAAP $ 50,622 $ 198,533 $ 45,823 $ 153,793 $ 3.07 23.0 % Twelve Months Ended May 31, 2024 Earnings Net Earnings Diluted Operating Before Income from EPS - Effective Income Income Tax Continuing Continuing Tax (Loss) Taxes Expense Operations(2) Operations(2) Rate(2) GAAP $ (73,459 ) $ 74,007 $ 39,027 $ 35,243 0.70 52.6 % Corporate costs eliminated at Separation 19,343 19,343 (4,643 ) 14,700 0.29 Impairment of goodwill and long-lived assets 32,975 32,975 - 32,975 0.65 Restructuring and other expense, net 29,327 29,327 (4,737 ) 24,590 0.49 Separation costs 12,705 12,705 (3,049 ) 9,656 0.19 Non-cash charges in miscellaneous expense - 19,180 (1,922 ) 17,258 0.34 Loss on extinguishment of debt - 1,534 (368 ) 1,166 0.02 Net non-recurring loss in equity income - (1,740 ) 418 (1,322 ) (0.02 ) One-time tax effects of Separation - - 9,197 9,197 0.18 Non-GAAP $ 20,891 $ 187,331 $ 44,131 $ 143,463 $ 2.84 23.5 % ________________________________ (1) For more information on these measures, refer to the 'Use of Non-GAAP Financial Measures and Definitions' section herein. (2) Excludes the impact of noncontrolling interest. Consolidated Results - Adjusted EBITDA from Continuing Operations Three Months Ended Twelve Months Ended May 31, May 31, 2025 2024 2025 2024 Net earnings (loss) from continuing operations (GAAP) 3,614 (31,784 ) 94,970 34,980 Plus: Net loss attributable to noncontrolling interest 263 263 1,083 263 Net earnings (loss) from continuing operations attributable to controlling interest 3,877 (31,521 ) 96,053 35,243 Interest (income) expense, net (60 ) (9 ) 2,090 1,587 Income tax expense 4,717 4,986 33,839 39,027 EBIT(1) 8,534 (26,544 ) 131,982 75,857 Corporate costs eliminated at Separation - - - 19,343 Impairment of goodwill and long-lived assets(2) 50,813 32,975 50,813 32,975 Restructuring and other expense, net(2) 1,372 28,624 10,524 29,327 Separation costs - 240 - 12,705 Non-cash charges in miscellaneous expense, net(3) 5,000 11,077 5,000 19,180 Loss on extinguishment of debt - - - 1,534 Non-recurring (gain) loss in equity income(4) 3,387 1,040 3,387 (1,740 ) Adjusted EBIT(1) 69,106 47,412 201,706 189,181 Depreciation and amortization 12,555 12,424 48,262 48,663 Stock-based compensation(5) 3,399 3,332 13,521 13,155 Adjusted EBITDA from continuing operations (non-GAAP) $ 85,060 $ 63,168 $ 263,489 $ 250,999 Net earnings (loss) from continuing operations margin (GAAP) 1.1 % (10.0 %) 8.2 % 2.8 % Adjusted EBITDA from continuing operations margin (non-GAAP) 26.8 % 19.8 % 22.8 % 20.1 % ________________________________ (1) EBIT and adjusted EBIT are non-GAAP financial measures. However, these measures are not used by management to evaluate the Company's performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of earnings before income taxes from continuing operations to adjusted EBITDA from continuing operations, which is a non-GAAP financial measure used by management. (2) Significant pre-tax impairment and restructuring charges include the following: Impairment of goodwill and long-lived assets: Non-cash charges of $50,050 in the fourth quarter of fiscal 2025 related to the write-down of intangible assets associated with GTI and $32,203 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former SES operating segment. Restructuring and other expense, net: A charge of $4,536 in fiscal 2025 related to an increase in the fair value of the contingent liability associated with the Ragasco earnout arrangement and a loss of $30,502 in the fourth quarter of fiscal 2024 due to the deconsolidation of our former SES operating segment during the fourth quarter of fiscal 2024. (3) Reflects the following non-cash charges in miscellaneous expense: Pre-tax charges of $5,000 and $11,077 during the fourth quarter of fiscal 2025 and fiscal 2024, respectively, to write down an investment that was determined to be other than temporarily impaired. A pre-tax charge of $8,010 during the fourth quarter of fiscal 2024 related to the completion of a pension lift-out transaction. (4) Includes the following activity within equity income: A non-cash impairment charge of $3,387 at the SES joint venture during the fourth quarter of fiscal 2025. A net gain of $2,780 associated with the divestiture of the Brazilian operations of Taxi Workhorse Holdings, LLC during the fourth quarter of fiscal 2024 and the settlement of certain participant balances within the pension plan maintained by WAVE. (5) Excludes $2,655 of stock-based compensation reported in restructuring and other expense, net in the Company's consolidated statement of earnings during fiscal 2025 related to the accelerated vesting of certain outstanding equity awards upon retirement of our former CEO effective November 1, 2024. Consolidated Results - Free Cash Flow The following tables provide a reconciliation of net cash provided by operating activities to free cash flow and the calculation of operating cash flow conversion to free cash flow conversion for the three months ended May 31, 2025 and 2024 and twelve months ended May 31, 2025. Cash flow information for the twelve months ended May 31, 2024 has not been presented because it is combined with the discontinued operations of Worthington Steel and is not meaningful for purposes of comparison. Refer to the consolidated Statements of Cash Flows for additional information. Three Twelve Months Ended Months Ended May 31, May 31, 2025 2024 2025 Net cash provided by operating activities (GAAP) $ 62,414 $ 45,169 $ 209,744 Investment in property, plant, and equipment (13,086 ) (11,336 ) (50,580 ) Free cash flow (non-GAAP) $ 49,328 $ 33,833 $ 159,164 Net earnings (loss) from continuing operations attributable to controlling interest (GAAP) $ 3,877 $ (31,521 ) $ 96,053 Adjusted net earnings attributable to controlling interest (non-GAAP) $ 53,097 $ 37,508 $ 153,793 Operating cash flow conversion (GAAP)(1) 1,610 % (143 %) 218 % Free cash flow conversion (non-GAAP) 93 % 90 % 103 % ________________________________ (1) Operating cash flow conversion is defined as net cash provided by operating activities divided by net earnings from continuing operations attributable to controlling interest. WORTHINGTON ENTERPRISES, OF NON-GAAP FINANCIAL MEASURES AND DEFINITIONS NON-GAAP FINANCIAL MEASURES. These materials include certain financial measures that are not calculated and presented in accordance with accounting principles generally accepted in the United States ('GAAP'). Non-GAAP financial measures typically exclude items that management believes are not reflective of, and thus should not be included when evaluating the performance of the Company's ongoing operations. Management uses these non-GAAP financial measures to evaluate ongoing performance, engage in financial and operational planning, and determine incentive compensation. Management believes these non-GAAP financial measures provide useful supplemental information regarding the performance of the Company's ongoing operations and should not be considered as an alternative to the comparable GAAP financial measure. Additionally, management believes these non-GAAP financial measures allow for meaningful comparisons and analysis of trends in the Company's businesses and enables investors to evaluate operations and future prospects in the same manner as management. The following provides an explanation of each non-GAAP financial measure presented in these materials: Adjusted operating income (loss) is defined as operating income (loss) excluding the items listed below, to the extent naturally included in operating income (loss). Adjusted net earnings from continuing operations is defined as net earnings from continuing operations attributable to controlling interest ('net earnings from continuing operations') excluding the after-tax effect of the excluded items outlined below. Adjusted earnings per diluted share from continuing operations ('Adjusted EPS from continuing operations - diluted') is defined as adjusted net earnings from continuing operations divided by diluted weighted-average shares outstanding). Adjusted EBITDA from continuing operations is the measure by which management evaluates segment performance and overall profitability. EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. Adjusted EBITDA from continuing operations excludes additional items including, but not limited to, those listed below, as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of ongoing operations. Adjusted EBITDA from continuing operations also excludes stock-based compensation due to its non-cash nature, which is consistent with how management assesses operating performance and determines incentive compensation. At the segment level, adjusted EBITDA from continuing operations includes expense allocations for centralized corporate back-office functions that exist to support the day-to-day business operations. Public company and other governance costs are held at the corporate level within the unallocated corporate and other category. Adjusted EBITDA from continuing operations margin is calculated by dividing adjusted EBITDA from continuing operations by net sales. Free cash flow is a non-GAAP financial liquidity measure that is used by the Company to assess its ability to generate cash beyond what is required for its business operations and capital expenditures. The Company defines free cash flow as net cash flows from operating activities less investment in property, plant, and equipment. Free cash flow conversion is a non-GAAP financial measure that is used by the Company to measure how much of its adjusted net earnings attributable to controlling interest is converted into cash. The Company defines free cash flow conversion as free cash flow divided by net earnings from continuing operations. EXCLUSIONS FROM NON-GAAP FINANCIAL MEASURES Management believes it is useful to exclude the following items from its non-GAAP financial measures for its own and investors' assessment of the business for the reasons identified below. Additionally, management may exclude other items from non-GAAP financial measures that do not occur in the ordinary course of the Company's ongoing business operations and note them in the reconciliation from net earnings from continuing operations to the non-GAAP financial measure adjusted EBITDA from continuing operations. Impairment charges are excluded because they do not occur in the ordinary course of the Company's ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, which management believes facilitates the comparison of historical, current and forecasted financial results. Restructuring activities consists of established programs that are intended to fundamentally change the Company's operations, and as such are excluded from its non-GAAP financial measures. The Company's restructuring programs may include closing or consolidating production facilities or moving manufacturing of a product to another location, realignment of the management structure of a business unit in response to changing market conditions or general rationalization of headcount. The Company's restructuring activities generally give rise to employee-related costs, such as severance pay, and facility-related costs, such as exit costs and gains or losses on asset disposals but may include other incremental costs associated with the Company's restructuring activities. Restructuring and other expense, net, may also include other nonrecurring items included in operating income but incremental to the Company's normal business activities. These items are excluded because they are not part of the ongoing operations of the Company's underlying business. Separation costs, which consist of direct and incremental costs incurred in connection with the completed Separation are excluded as they are one-time in nature and are not expected to occur in periods following the Separation. These costs include fees paid to third-party advisors, such as investment banking, audit and other advisory services as well as direct and incremental costs associated with the Separation of shared corporate functions. Results in fiscal 2024 also include incremental compensation expense associated with the modification of unvested short and long-term incentive compensation awards, as required under the employee matters agreement executed in conjunction with the Separation. Non-cash charges in miscellaneous expense are excluded due to their non-cash nature and the fact that they do not occur in the normal course of business and may obscure analysis of trends and financial performance. Loss on extinguishment of debt is excluded because it does not occur in the normal course of business and may obscure analysis of trends and financial performance. Additionally, the amount and frequency of this type of charge is not consistent and is significantly impacted by the timing and size of debt extinguishment transactions. Corporate costs eliminated at Separation reflect certain corporate overhead costs that no longer exist post-Separation. These costs were included in continuing operations as they represent general corporate overhead that was historically allocated to the Company's former steel processing business but did not meet the requirements to be presented as discontinued operations. Pension settlement charges are excluded due to their non-cash nature and the fact that they do not occur in the normal course of business and may obscure analysis of trends and financial performance. These transactions typically result from the transfer of all or a portion of the total projected benefit obligation to third-party insurance companies. One-time tax effects of Separation are charges to income tax expense primarily related to non-deductible transaction costs. They are excluded because they are one-time in nature and not expected to occur in periods following the Separation. Non-recurring loss in equity income is excluded because it does not occur in the normal course of business and is inherently unpredictable in timing and amount. Sonya L. HigginbothamSenior Vice PresidentChief of Corporate Affairs, Communications and Marcus A. RogierTreasurer and Investor Relations 200 West Old Wilson Bridge Ohio
Yahoo
19-06-2025
- Business
- Yahoo
Worthington Enterprises Acquires Elgen Manufacturing; Expands Building Systems and Components Portfolio
Elgen Manufacturing COLUMBUS, Ohio, June 19, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises (NYSE: WOR), a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences, today announced its acquisition of Elgen Manufacturing (Elgen) of Closter, New Jersey. Elgen is a market-leading designer and manufacturer of HVAC parts and components, ductwork and structural framing primarily used in commercial buildings throughout North America. Recurring demand for maintenance, repair and remodel of existing HVAC installations is a key driver of volume and customer spend in these markets. Joe Hayek, president and chief executive officer, Worthington Enterprises, said, 'The addition of Elgen aligns closely with our strategy to build and acquire businesses with leadership positions in niche markets. Elgen's manufacturing processes, go-to-market strategies and end markets mirror ours, creating meaningful opportunities for synergies and growth. We are excited to welcome the Elgen team to Worthington Enterprises and look forward to growing together as their 250 employees become part of our people-first, performance-based culture.' Elgen will become part of the Building Products segment at Worthington Enterprises that includes a portfolio of critical building systems and components for heating, cooling, construction and water applications, as well as architectural and acoustical grid ceilings and metal framing and accessories. Elgen's steel-based products are used by contractors to renovate, repair and build the HVAC infrastructure within commercial buildings. Its sales strategy features direct sales to contractors and strategic distributor partnerships that broaden reach into niche markets. The company's distribution model allows for superior customer service and flexibility in best-in-class lead times for specialty (non-standard) products that are frequently needed by contractors installing on tight timelines. Jimmy Bowes, president, Building Products, Worthington Enterprises, added, 'Elgen's HVAC componentry and recurring revenue through maintenance, repair and remodel are a natural fit with our products for the building envelope. We believe we can create new value for Elgen's customers and generate operational efficiencies for the business by leveraging Worthington's domestic footprint, manufacturing expertise and purchasing power.' David Young, chief executive officer, Elgen Manufacturing, said, 'This is a milestone in our rich history and one that we believe accelerates our ability to serve our customers and retain and attract a top workforce. We look forward to supporting the continued growth of Worthington Enterprises and remain committed to delivering innovative products and excellent service to our customers.' Young and other members of the Elgen leadership team will remain with the business and maintain similar roles and responsibilities. Worthington Enterprises acquired Elgen Manufacturing for approximately $93 million funded with cash on hand. For the trailing 12 months ended April 30, 2025, Elgen generated net sales of $114.9 million and EBITDA of $13.3 million. A presentation with more information on the transaction can be found on the investor relations section of the Company's website. About Worthington Enterprises Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that improve everyday life by elevating spaces and experiences. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Elgen, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others. Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit Safe Harbor Statement Selected statements contained in this release constitute 'forward-looking statements,' as that term is used in the Private Securities Litigation Reform Act of 1995 (the 'Act'). The Company wishes to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company's current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as 'believe,' 'expect,' 'anticipate,' 'may,' 'could,' 'should,' 'would,' 'intend,' 'plan,' 'will,' 'likely,' 'estimate,' 'project,' 'position,' 'strategy,' 'target,' 'aim,' 'seek,' 'foresee' and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the separation of the Company's Steel Processing business (the 'Separation); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the Company's performance on a pro forma basis to illustrate the estimated effects of the Separation on historical periods; the tax treatment of the Separation transaction; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company's operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus ('COVID-19') pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation, those that follow: the uncertainty of obtaining regulatory approvals in connection with the Separation, including rulings from the Internal Revenue Service; the Company's ability to successfully realize the anticipated benefits of the Separation; the risks, uncertainties and impacts related to the COVID-19 pandemic – the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof – and the availability, effectiveness and acceptance of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company's products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company's products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of the COVID-19 pandemic and Russia's invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly-acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia's invasion of Ukraine), terrorist activities or other causes; changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia's invasion of Ukraine), foreign currency exchange rate exposure and the acceptance of the Company's products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, which may negatively impact the Company's operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company's markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company's ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Company's healthcare and other costs and negatively impact the Company's operations and financial results; the effects of tax laws in the United States and potential changes for such laws, which may increase the Company's costs and negatively impact the Company's operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company's filings with the United States Securities and Exchange Commission, including those described in 'Part I – Item 1A. – Risk Factors' of the Company's Annual Report on Form 10-K for the fiscal year ended May 31, 2024. Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, readers should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law. Sonya L. HigginbothamSenior Vice PresidentChief of Corporate Affairs, Communications and Marcus A. RogierTreasurer and Investor Relations 200 West Old Wilson Bridge Ohio A photo accompanying this announcement is available at
Yahoo
29-01-2025
- Business
- Yahoo
Worthington Enterprises Supports PHMSA Cylinder Safety Advisory Seeking to Keep Americans Safe from Fraudulent Imports
COLUMBUS, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR) is encouraging consumers, contractors, retailers and other users of pressure cylinders to follow the January 13, 2025, safety advisory issued by the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) regarding unsafe cylinders manufactured primarily by non-U.S. companies. Worthington Enterprises is the only American manufacturer of many sizes of steel cylinders, which are used for various critical infrastructure purposes such as cooking, home heating, refrigeration/cooling, foam insulation, sealants and adhesives. In its advisory, PHMSA described the safety issue by writing, 'Cylinders that are not authorized for the safe filling or transport of gases are being sold online by major retailers. PHMSA is particularly concerned that these cylinders are not manufactured to a DOT specification or UN standard, lack certification markings as required by [PHMSA's regulations], and are being sold to consumers, and HVAC personnel and service technicians. For cylinders that are used for activities such as outdoor grilling or camping, consumers should ensure their cylinders are in compliance with [PHMSA's regulations] for their own safety. Likewise, technicians are supposed to use authorized DOT specification or UN standard cylinders to extract or recover refrigerant gas from systems in need of repair or replacement, so that the cylinder can be safely and legally transported.' Joe Hayek, president and chief executive officer, Worthington Enterprises, said, 'We are grateful for PHMSA's work to keep Americans safe, and we share the agency's concerns about the proliferation of non-compliant cylinders making their way into and throughout our country. There is mounting evidence that companies in China and other countries are undermining DOT's pressurized cylinder quality and safety standards that Worthington has adhered to for more than 50 years. The sale of non-compliant cylinders and the shipping of hazardous material in those cylinders without required markings creates safety risks that need to be addressed.' The Compressed Gas Cylinder Safety and Oversight Improvements Act of 2023 (H.R. 3404 and S. 1632) is an important part of the solution. The proposed bill, which was introduced by a bipartisan group of co-sponsors from the U.S. Senate and U.S. House of Representatives, seeks to require the U.S. Secretary of Transportation to establish regulations relating to cylinders manufactured in foreign countries and sold in the United States. Regulations could include facility inspections and other protocols to ensure safety and compliance. While this bill was not enacted before the end of the last Congressional session, Worthington Enterprises is eager to collaborate with the new Congress and the Trump administration to enact these reforms in 2025. Hayek concluded, 'These products, which are growing in variety and volume, are potentially unsafe and put users in danger. The risks presented will only grow in the absence of consistent inspection and accountability. We are looking forward to working with Congress and the professional leadership at PHMSA to champion high-quality and safe products made in America.' Worthington Enterprises manufacturers cylinders in the United States at facilities in Maize, Kansas; Paducah, Kentucky; Columbus, Jefferson and Westerville, Ohio; West Warwick, Rhode Island; and, Chilton, Wisconsin. About Worthington Enterprises Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that help enable people to live safer, healthier and more expressive lives. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others. The Company also serves the growing global hydrogen ecosystem via a joint venture focused on on-board fueling systems and gas containment solutions. Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit Forward-Looking Statements Statements by Worthington Enterprises that are not limited to historical information constitute 'forward-looking statements' under federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expected by Worthington Enterprises. Readers should evaluate forward-looking statements in the context of such risks, uncertainties and other factors, many of which are described in Worthington Enterprises' filings with the Securities and Exchange Commission ('SEC'). Forward-looking statements are qualified by the cautionary statements included in Worthington Enterprises' SEC filings and other public communications. This press release speaks only as of the date hereof. Worthington Enterprises does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation. Sonya L. HigginbothamSenior Vice PresidentChief of Corporate Affairs, Communications and Marcus A. RogierTreasurer and Investor Relations 200 West Old Wilson Bridge Ohio in to access your portfolio
Associated Press
29-01-2025
- Business
- Associated Press
Worthington Enterprises Supports PHMSA Cylinder Safety Advisory Seeking to Keep Americans Safe from Fraudulent Imports
COLUMBUS, Ohio, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Worthington Enterprises Inc. (NYSE: WOR) is encouraging consumers, contractors, retailers and other users of pressure cylinders to follow the January 13, 2025, safety advisory issued by the U.S. Department of Transportation (DOT) Pipeline and Hazardous Materials Safety Administration (PHMSA) regarding unsafe cylinders manufactured primarily by non-U.S. companies. Worthington Enterprises is the only American manufacturer of many sizes of steel cylinders, which are used for various critical infrastructure purposes such as cooking, home heating, refrigeration/cooling, foam insulation, sealants and adhesives. In its advisory, PHMSA described the safety issue by writing, 'Cylinders that are not authorized for the safe filling or transport of gases are being sold online by major retailers. PHMSA is particularly concerned that these cylinders are not manufactured to a DOT specification or UN standard, lack certification markings as required by [PHMSA's regulations], and are being sold to consumers, and HVAC personnel and service technicians. For cylinders that are used for activities such as outdoor grilling or camping, consumers should ensure their cylinders are in compliance with [PHMSA's regulations] for their own safety. Likewise, technicians are supposed to use authorized DOT specification or UN standard cylinders to extract or recover refrigerant gas from systems in need of repair or replacement, so that the cylinder can be safely and legally transported.' Joe Hayek, president and chief executive officer, Worthington Enterprises, said, 'We are grateful for PHMSA's work to keep Americans safe, and we share the agency's concerns about the proliferation of non-compliant cylinders making their way into and throughout our country. There is mounting evidence that companies in China and other countries are undermining DOT's pressurized cylinder quality and safety standards that Worthington has adhered to for more than 50 years. The sale of non-compliant cylinders and the shipping of hazardous material in those cylinders without required markings creates safety risks that need to be addressed.' The Compressed Gas Cylinder Safety and Oversight Improvements Act of 2023 (H.R. 3404 and S. 1632) is an important part of the solution. The proposed bill, which was introduced by a bipartisan group of co-sponsors from the U.S. Senate and U.S. House of Representatives, seeks to require the U.S. Secretary of Transportation to establish regulations relating to cylinders manufactured in foreign countries and sold in the United States. Regulations could include facility inspections and other protocols to ensure safety and compliance. While this bill was not enacted before the end of the last Congressional session, Worthington Enterprises is eager to collaborate with the new Congress and the Trump administration to enact these reforms in 2025. Hayek concluded, 'These products, which are growing in variety and volume, are potentially unsafe and put users in danger. The risks presented will only grow in the absence of consistent inspection and accountability. We are looking forward to working with Congress and the professional leadership at PHMSA to champion high-quality and safe products made in America.' Worthington Enterprises manufacturers cylinders in the United States at facilities in Maize, Kansas; Paducah, Kentucky; Columbus, Jefferson and Westerville, Ohio; West Warwick, Rhode Island; and, Chilton, Wisconsin. About Worthington Enterprises Worthington Enterprises (NYSE: WOR) is a designer and manufacturer of market-leading brands that help enable people to live safer, healthier and more expressive lives. The Company operates with two primary business segments: Building Products and Consumer Products. The Building Products segment includes cooking, heating, cooling and water solutions, architectural and acoustical grid ceilings and metal framing and accessories. The Consumer Products segment provides solutions for the tools, outdoor living and celebrations categories. Product brands within the Worthington Enterprises portfolio include Balloon Time®, Bernzomatic®, Coleman® (propane cylinders), CoMet®, Garden Weasel®, General®, HALO™, Hawkeye™, Level5 Tools®, Mag Torch®, NEXI™, Pactool International®, PowerCore™, Ragasco®, Well-X-Trol® and XLite™, among others. The Company also serves the growing global hydrogen ecosystem via a joint venture focused on on-board fueling systems and gas containment solutions. Headquartered in Columbus, Ohio, Worthington Enterprises and its joint ventures employ approximately 6,000 people throughout North America and Europe. Founded in 1955 as Worthington Industries, Worthington Enterprises follows a people-first Philosophy with earning money for its shareholders as its first corporate goal. Worthington Enterprises achieves this outcome by empowering its employees to innovate, thrive and grow with leading brands in attractive markets that improve everyday life. The Company engages deeply with local communities where it has operations through volunteer efforts and The Worthington Companies Foundation, participates actively in workforce development programs and reports annually on its corporate citizenship and sustainability efforts. For more information, visit Forward-Looking Statements Statements by Worthington Enterprises that are not limited to historical information constitute 'forward-looking statements' under federal securities laws. Forward-looking statements are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from those expected by Worthington Enterprises. Readers should evaluate forward-looking statements in the context of such risks, uncertainties and other factors, many of which are described in Worthington Enterprises' filings with the Securities and Exchange Commission ('SEC'). Forward-looking statements are qualified by the cautionary statements included in Worthington Enterprises' SEC filings and other public communications. This press release speaks only as of the date hereof. Worthington Enterprises does not undertake any obligation to update or revise its forward-looking statements except as required by applicable law or regulation. Sonya L. Higginbotham 614.438.7391 Marcus A. Rogier 614.840.4663 200 West Old Wilson Bridge Rd. Columbus, Ohio 43085
