Worthington Reports Fourth Quarter Fiscal 2021 Results

·24 min read

COLUMBUS, Ohio, June 23, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $978.3 million and net earnings of $113.6 million, or $2.15 per diluted share, for its fiscal 2021 fourth quarter ended May 31, 2021. In the fourth quarter of fiscal 2020, the Company reported net sales of $611.6 million and net earnings of $16.2 million, or $0.29 per diluted share. Results in both the current and prior year quarters were impacted by certain unique items, as summarized in the table below.

(U.S. dollars in millions, except per share amounts)

4Q 2021

4Q 2020

After-Tax

Per Share

After-Tax

Per Share

Net earnings

$

113.6

$

2.15

$

16.2

$

0.29

Impairment and restructuring charges

10.9

0.20

11.0

0.20

Incremental expenses related to Nikola gains

(1.1

)

(0.02

)

-

-

Adjusted net earnings

$

123.4

$

2.33

$

27.2

$

0.49

Financial highlights for the current and comparative periods are as follows:

(U.S. dollars in millions, except per share amounts)

4Q 2021

4Q 2020

12M 2021

12M 2020

Net sales

$

978.3

$

611.6

$

3,171.4

$

3,059.1

Operating income

110.5

6.3

167.5

22.5

Equity income

42.4

17.3

123.3

114.8

Net earnings

113.6

16.2

723.8

78.8

Earnings per diluted share

$

2.15

$

0.29

$

13.42

$

1.41

“We had an exceptional fiscal 2021 generating record fourth quarter and annual earnings per share,” said Andy Rose, President and CEO. “While we benefitted from rising steel prices, we also saw robust demand across most of our businesses and joint ventures. I am very pleased with the way our teams executed this past year coming out of the pandemic, and I want to thank all of our employees for their hard work and continuing commitment to making the Company better and growing earnings for our shareholders.”

Consolidated Quarterly Results

Net sales for the fourth quarter of fiscal 2021 were $978.3 million compared to $611.6 million, an increase of 60% over the comparable quarter in the prior year. The increase was driven by overall volume improvements in both Steel Processing and Pressure Cylinders and higher average direct selling prices in Steel Processing.

Gross margin increased $136.3 million over the prior year quarter to $226.1 million, primarily due to improved direct spreads in Steel Processing and the impact of higher overall volumes.

Operating income for the current quarter was $110.5 million, an increase of $104.1 million over the prior year quarter. The impact of higher gross margin was partially offset by higher SG&A expense, which was up $32.1 million, mostly due to higher profit sharing and bonus expense resulting from the significant increase in earnings.

Interest expense was $7.7 million in the current quarter, compared to $7.5 million in the prior year quarter. The increase was due primarily to higher average debt levels.

Equity income from unconsolidated joint ventures increased $25.1 million over the prior year quarter to $42.4 million on higher contributions from all joint ventures. The Company received cash distributions of $25.5 million from unconsolidated joint ventures during the quarter.

Income tax expense was $27.4 million in the current quarter compared to $5.8 million in the prior year quarter. The increase was driven by higher pre-tax earnings, partially offset by a discrete tax benefit realized in connection with the sale of the Company’s liquified petroleum gas (LPG) fuel storage business in Poland. Tax expense in the current quarter reflects an annual effective rate of 19.6% compared to 25.1% for the prior year.

Balance Sheet

At quarter-end, total debt of $710.5 million was relatively consistent with debt at February 28, 2021, and the Company had $640.3 million of cash.

Quarterly Segment Results

Steel Processing’s net sales totaled $655.2 million, up 100%, or $327.0 million, over the comparable prior year quarter when COVID-19 related shutdowns significantly reduced demand. The increase in net sales was driven by higher average direct selling prices and higher volume. Operating income of $94.3 million was $96.1 million higher than the loss in the prior year quarter on improved direct spreads and the impact of higher volume. Direct spreads benefited from significant inventory holding gains, estimated to be $50.5 million in the current quarter compared to $0.6 million in the prior year quarter. The mix of direct versus toll tons processed was 48% to 52% in the current quarter, compared to 45% to 55% in the prior year quarter.

Pressure Cylinders’ net sales totaled $323.1 million, up 14%, or $40.2 million, over the comparable prior year quarter due to higher volumes in both the consumer and industrial products businesses. Operating income of $13.0 million was $0.5 million less than the prior year quarter. Excluding impairment and restructuring charges, operating income was up $9.3 million over the prior year quarter to $31.1 million, driven by higher volumes combined with the impact of divestitures of underperforming businesses completed earlier in the fiscal year.

Recent Developments

  • On March 12, 2021, the Company sold its Structural Composites Industries, LLC business located in Pomona, California to Luxfer Holdings PLC. The Company received net proceeds of $19.1 million, resulting in a pre-tax loss of $7.2 million within restructuring and other expense.

  • On May 31, 2021, the Company sold its LPG fuel storage business, located in Poland, to Westport Fuel Systems, Inc. The Company received total consideration of approximately $6.0 million, resulting in a pre-tax loss of $11.0 million within restructuring and other expense.

  • During the fourth quarter of fiscal 2021, the Company repurchased a total of 700,000 of its common shares for $46.8 million, at an average purchase price of $66.86.

  • On June 8, 2021, the Company acquired certain assets of Shiloh Industries U.S. BlankLight® business, a provider of laser welded solutions, for approximately $105.0 million, subject to closing adjustments. The acquisition includes three facilities that will expand the capacity and capabilities of TWB’s laser welded products business and an additional blanking facility that will support the Company’s core steel processing operations.

  • On June 9, 2021, the Company’s consolidated joint venture, WSP, sold the remaining assets of its Canton, Mich., facility for approximately $20.0 million. The Company expects to record a gain of approximately $12.0 million in the first quarter of fiscal 2022 related to the divestiture. WSP continues to operate locations in Jackson and Taylor, Mich.

  • On June 10, 2021, the Company announced that its Pressure Cylinders segment was being divided into three new reporting segments: Consumer Products, Building Products and Sustainable Energy Solutions, effective at the start of fiscal year 2022. The three new reporting segments are in addition to the Company’s Steel Processing segment.

  • On June 23, 2021, Worthington’s Board of Directors declared a quarterly dividend of $0.28 per share payable on September 29, 2021 to shareholders of record on September 15, 2021.

Outlook

“As we enter our new fiscal year, demand levels and backlogs are quite good across our key end markets. Going forward, we expect results will be positively impacted by our recent acquisitions and actions we have taken to divest underperforming assets,” said Rose. “Our businesses have solid growth strategies, underpinned by innovation, transformation and M&A, and our new reporting segments will allow our teams to reshape these businesses around larger, more attractive end markets.”

Conference Call

Worthington will review fiscal 2021 fourth quarter results during its quarterly conference call on June 24, 2021, at 9:30 a.m., Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonIndustries.com.

About Worthington Industries

Worthington Industries (NYSE:WOR) is a leading industrial manufacturing company delivering innovative solutions to customers that span many industries including transportation, construction, industrial, agriculture, retail and energy. Worthington is North America’s premier value-added steel processor and producer of laser welded products; and a leading global supplier of pressure cylinders and accessories for applications such as fuel storage, water systems, outdoor living, tools and celebrations. The Company’s brands, primarily sold in retail stores, include Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, Well-X-Trol®, General®, Garden-Weasel®, Pactool International® and Hawkeye™. Worthington’s WAVE joint venture with Armstrong is the North American leader in innovative ceiling solutions.

Headquartered in Columbus, Ohio, Worthington operates 53 facilities in 15 states and seven countries, sells into over 90 countries and employs approximately 8,000 people. Founded in 1955, the Company follows a people-first philosophy with earning money for its shareholders as its first corporate goal. Relentlessly finding new ways to drive progress and practicing a shared commitment to transformation, Worthington makes better solutions possible for customers, employees, shareholders and communities.

Safe Harbor Statement

The Company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act”). Statements by the Company relating to the ever-changing effects of the novel coronavirus (“COVID-19”) pandemic – and the various responses of governmental and nongovernmental authorities thereto (such as fiscal stimulus packages, quarantines, shut downs and other restrictions on travel and commercial, social or other activities) on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers; future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; 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; and other non-historical matters constitute “forward-looking statements” within the meaning of the Act. 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, 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 and effectiveness 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 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 ; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company’s products; fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities and other items required by operations; 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, interruption in utility services, civil unrest, international conflicts, 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, 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; 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 other actions of the environmental protection agency or similar regulators which increase costs or limit the ability to use or sell certain products; 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, the Dodd-Frank Wall Street Reform and the 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; 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, 2020.

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)

Three Months Ended

Twelve Months Ended

May 31,
2021

May 31,
2020

May 31,
2021

May 31,
2020

Net sales

$

978,319

$

611,627

$

3,171,429

$

3,059,119

Cost of goods sold

752,171

521,737

2,532,351

2,615,782

Gross margin

226,148

89,890

639,078

443,337

Selling, general and administrative expense

99,925

67,816

351,145

328,110

Impairment of goodwill and long-lived assets

-

7,462

13,739

82,690

Restructuring and other expense, net

18,441

8,267

56,097

10,048

Incremental expenses related to Nikola gains

(2,676

)

-

50,624

-

Operating income

110,458

6,345

167,473

22,489

Other income (expense):

Miscellaneous income, net

797

783

2,163

9,099

Interest expense

(7,650

)

(7,459

)

(30,346

)

(31,616

)

Equity in net income of unconsolidated affiliates

42,386

17,256

123,325

114,848

Gains on investment in Nikola

-

-

655,102

-

Loss on extinguishment of debt

-

-

-

(4,034

)

Earnings before income taxes

145,991

16,925

917,717

110,786

Income tax expense

27,449

5,836

176,267

26,342

Net earnings

118,542

11,089

741,450

84,444

Net earnings (loss) attributable to noncontrolling interests

4,987

(5,086

)

17,655

5,648

Net earnings attributable to controlling interest

$

113,555

$

16,175

$

723,795

$

78,796

Basic

Average common shares outstanding

51,587

54,604

52,701

54,958

Earnings per share attributable to controlling interest

$

2.20

$

0.30

$

13.73

$

1.43

Diluted

Average common shares outstanding

52,862

55,206

53,917

55,983

Earnings per share attributable to controlling interest

$

2.15

$

0.29

$

13.42

$

1.41

Common shares outstanding at end of period

51,330

54,616

51,330

54,616

Cash dividends declared per share

$

0.28

$

0.24

$

1.03

$

0.96

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)

May 31,

May 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

640,311

$

147,198

Receivables, less allowances of $608 and $1,521 at May 31, 2021

and May 31, 2020, respectively

639,964

341,038

Inventories:

Raw materials

266,208

234,629

Work in process

183,413

76,497

Finished products

115,133

93,975

Total inventories

564,754

405,101

Income taxes receivable

1,958

8,376

Assets held for sale

51,956

12,928

Prepaid expenses and other current assets

69,049

68,538

Total current assets

1,967,992

983,179

Investments in unconsolidated affiliates

233,126

203,329

Operating lease assets

35,101

31,557

Goodwill

351,056

321,434

Other intangible assets, net of accumulated amortization of $80,513 and

$92,774 at May 31, 2021 and May 31, 2020, respectively

240,387

184,416

Other assets

30,566

34,956

Property, plant and equipment:

Land

21,744

24,197

Buildings and improvements

271,196

302,796

Machinery and equipment

1,046,065

1,055,139

Construction in progress

53,903

52,231

Total property, plant and equipment

1,392,908

1,434,363

Less: accumulated depreciation

877,891

861,719

Total property, plant and equipment, net

515,017

572,644

Total assets

$

3,373,245

$

2,331,515

Liabilities and equity

Current liabilities:

Accounts payable

$

567,392

$

247,017

Accrued compensation, contributions to employee benefit plans and

related taxes

137,698

64,650

Dividends payable

16,536

14,648

Other accrued items

52,250

49,974

Current operating lease liabilities

9,947

10,851

Income taxes payable

3,620

949

Current maturities of long-term debt

458

149

Total current liabilities

787,901

388,238

Other liabilities

82,824

75,786

Distributions in excess of investment in unconsolidated affiliate

99,669

103,837

Long-term debt

710,031

699,516

Noncurrent operating lease liabilities

27,374

25,763

Deferred income taxes, net

113,751

71,942

Total liabilities

1,821,550

1,365,082

Shareholders' equity - controlling interest

1,398,193

820,821

Noncontrolling interests

153,502

145,612

Total equity

1,551,695

966,433

Total liabilities and equity

$

3,373,245

$

2,331,515

WORTHINGTON INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Three Months Ended

Twelve Months Ended

May 31,
2021

May 31,
2020

May 31,
2021

May 31,
2020

Operating activities:

Net earnings

$

118,542

$

11,089

$

741,450

$

84,444

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization

21,990

23,125

87,654

92,678

Impairment of goodwill and long-lived assets

-

7,462

13,739

82,690

Provision for (benefit from) deferred income taxes

(4,304

)

352

4,822

(1,309

)

Bad debt (income) expense

(95

)

(4

)

(255

)

580

Equity in net income of unconsolidated affiliates, net of distributions

(16,881

)

27,377

(32,318

)

8,106

Net (gain) loss on sale of assets

18,293

180

53,607

(5,057

)

Stock-based compensation

4,692

1,883

19,129

11,883

Gains on investment in Nikola

-

-

(655,102

)

-

Charitable contribution of Nikola shares

-

-

20,653

-

Loss on extinguishment of debt

-

-

-

4,034

Changes in assets and liabilities, net of impact of acquisitions:

Receivables

(112,535

)

131,708

(223,254

)

147,225

Inventories

(163,149

)

(28,781

)

(169,740

)

62,126

Accounts payable

157,593

(114,337

)

315,222

(142,684

)

Accrued compensation and employee benefits

27,134

10,862

75,725

(11,878

)

Income taxes payable

(33,896

)

525

2,671

(215

)

Other operating items, net

22,923

9,435

20,376

4,103

Net cash provided by operating activities

40,307

80,876

274,379

336,726

Investing activities:

Investment in property, plant and equipment

(16,857

)

(23,729

)

(82,178

)

(95,503

)

Proceeds from sale of Nikola shares

-

-

634,449

-

Acquisitions, net of cash acquired

203

(965

)

(129,615

)

(30,748

)

Proceeds from sale of assets

25,259

718

45,854

10,036

Net cash provided (used) by investing activities

8,605

(23,976

)

468,510

(116,215

)

Financing activities:

Proceeds from long-term debt, net of issuance costs

-

-

-

101,464

Principal payments on long-term obligations and debt redemption costs

(330

)

(102

)

(622

)

(154,913

)

Proceeds from issuance of common shares, net of tax withholdings

4,872

82

6,581

(6,513

)

Payments to noncontrolling interests

(2,880

)

-

(10,690

)

(1,453

)

Repurchase of common shares

(46,804

)

-

(192,054

)

(50,972

)

Dividends paid

(12,964

)

(13,112

)

(52,991

)

(53,289

)

Net cash used by financing activities

(58,106

)

(13,132

)

(249,776

)

(165,676

)

Increase (decrease) in cash and cash equivalents

(9,194

)

43,768

493,113

54,835

Cash and cash equivalents at beginning of period

649,505

103,430

147,198

92,363

Cash and cash equivalents at end of period

$

640,311

$

147,198

$

640,311

$

147,198

WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands, except volume)

This supplemental information is provided to assist in the analysis of the results of operations.

Three Months Ended

Twelve Months Ended

May 31,
2021

May 31,
2020

May 31,
2021

May 31,
2020

Volume:

Steel Processing (tons)

1,099,477

795,161

4,066,773

3,830,675

Pressure Cylinders (units)

25,161,866

23,346,466

86,769,147

82,519,829

Net sales:

Steel Processing

$

655,177

$

328,222

$

2,059,397

$

1,859,670

Pressure Cylinders

323,142

282,898

1,110,973

1,148,424

Other

-

507

1,059

51,025

Total net sales

$

978,319

$

611,627

$

3,171,429

$

3,059,119

Material cost:

Steel Processing

$

427,048

$

230,076

$

1,360,089

$

1,339,898

Pressure Cylinders

138,130

123,639

465,917

496,906

Selling, general and administrative expense:

Steel Processing

$

48,682

$

27,664

$

165,382

$

136,664

Pressure Cylinders

52,095

40,090

186,398

180,721

Operating income (loss):

Steel Processing

$

94,333

$

(1,797

)

$

208,648

$

40,564

Pressure Cylinders

12,970

13,498

9,276

38,903

Other

(529

)

(6,133

)

(1,499

)

(54,968

)

Segment operating income

106,774

5,568

216,425

24,499

Unallocated corporate and other

1,008

777

1,672

(2,010

)

Incremental expenses related to Nikola gains

2,676

-

(50,624

)

-

Total operating income

$

110,458

$

6,345

$

167,473

$

22,489

Equity income (loss) by unconsolidated affiliate:

WAVE

$

24,460

$

15,334

$

78,869

$

101,063

ClarkDietrich

8,365

3,309

24,578

17,225

Serviacero Worthington

8,571

(1,029

)

15,965

1,325

ArtiFlex

1,596

(297

)

4,475

2,731

Other

(606

)

(61

)

(562

)

(7,496

)

Total equity income

$

42,386

$

17,256

$

123,325

$

114,848

WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands, except volume)

The following provides detail of Pressure Cylinders volume and net sales by principal class of products.

Three Months Ended

Twelve Months Ended

May 31,
2021

May 31,
2020

May 31,
2021

May 31,
2020

Volume (units):

Consumer products

20,646,812

18,926,216

71,399,889

68,596,103

Industrial products

4,515,054

4,419,990

15,368,823

13,921,973

Oil & gas equipment

-

260

435

1,753

Total Pressure Cylinders

25,161,866

23,346,466

86,769,147

82,519,829

Net sales:

Consumer products

$

162,723

$

125,188

$

537,930

$

485,990

Industrial products

160,419

138,549

552,093

550,543

Oil & gas equipment

-

19,161

20,950

111,891

Total Pressure Cylinders

$

323,142

$

282,898

$

1,110,973

$

1,148,424

The following provides detail of impairment of goodwill and long-lived assets and restructuring and other expense, net included in operating income by segment.

Three Months Ended

Twelve Months Ended

May 31,
2021

May 31,
2020

May 31,
2021

May 31,
2020

Impairment of goodwill and long-lived assets:

Steel Processing

$

-

$

565

$

-

$

1,839

Pressure Cylinders

-

3,800

13,739

37,153

Other

-

3,097

-

43,698

Total impairment of goodwill and long-lived assets

$

-

$

7,462

$

13,739

$

82,690

Restructuring and other expense, net:

Steel Processing

$

79

$

2,799

$

1,883

$

3,501

Pressure Cylinders

18,149

4,535

54,155

5,282

Other

213

933

59

1,265

Total restructuring and other expense, net

$

18,441

$

8,267

$

56,097

$

10,048

WORTHINGTON INDUSTRIES, INC.
NON-GAAP FINANCIAL MEASURES
(In thousands, except per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). The Company also presents adjusted earnings per diluted share and adjusted operating income to assist in the understanding of its results of operations. These represent non-GAAP financial measures and are used by management as measures of operating performance. In general, these measures exclude impairment and restructuring charges, but may also exclude other items that management does not believe reflect the Company’s core operations.

The following provides a reconciliation of adjusted operating income and adjusted earnings per diluted share to the most comparable GAAP measures for the periods presented.

Three Months Ended May 31, 2021

Operating
Income

Earnings
Before
Income
Taxes

Income
Tax
Expense
(Benefit)

Net Earnings
Attributable to
Controlling
Interest
1

Earnings
per
Diluted
Share

GAAP

$

110,458

$

145,991

$

27,449

$

113,555

$

2.15

Restructuring and other expense, net

18,441

18,441

(7,413

)

10,998

0.20

Incremental expenses related to Nikola gains

(2,676

)

(2,676

)

1,544

(1,132

)

(0.02

)

Non-GAAP

$

126,223

$

161,756

$

33,318

$

123,421

$

2.33


Three Months Ended May 31, 2020

Operating
Income

Earnings
Before
Income
Taxes

Income
Tax
Expense
(Benefit)

Net Earnings
Attributable to
Controlling
Interest
1

Earnings
per
Diluted
Share

GAAP

$

6,345

$

16,925

$

5,836

$

16,175

$

0.29

Impairment of long-lived assets

7,462

7,462

(1,865

)

5,406

0.10

Restructuring and other expense, net

8,267

8,267

(2,134

)

5,615

0.10

Non-GAAP

$

22,074

$

32,654

$

9,835

$

27,196

$

0.49

Change

$

104,149

$

129,102

$

23,483

$

96,225

$

1.84

1 Excludes the impact of the noncontrolling interest.

The following provides a reconciliation of adjusted operating income to the most comparable GAAP measure for the Company’s Pressure Cylinders segment for the periods presented.

Three Months Ended

May 31,
2021

May 31,
2020

Operating income

$

12,970

$

13,498

Impairment of long-lived assets

-

3,800

Restructuring and other expense, net

18,149

4,535

Adjusted operating income

$

31,119

$

21,833

Contacts:
SONYA L. HIGGINBOTHAM
VP, CORPORATE COMMUNICATIONS
AND BRAND MANAGEMENT
614.438.7391 | sonya.higginbotham@worthingtonindustries.com

MARCUS A. ROGIER
TREASURER AND INVESTOR RELATIONS OFFICER
614.840.4663 | marcus.rogier@worthingtonindustries.com

200 Old Wilson Bridge Rd. | Columbus, Ohio 43085
WorthingtonIndustries.com


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