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Segment Operations (Tables)
 9 Months Ended
Feb. 29, 2024
Segment Reporting [Abstract]  
Financial Information for Reportable Segments

The following tables presents summarized financial information for our reportable segments for the periods indicated.

 

 

Three Months Ended February 29, 2024

 

(In thousands)

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

Unallocated Corporate and Other

 

 

Consolidated (5)

 

Net sales

$

133,181

 

 

$

148,190

 

 

$

35,384

 

$

-

 

 

$

316,755

 

Restructuring and other expense, net

 

-

 

 

 

84

 

 

 

-

 

 

614

 

 

 

698

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

2,999

 

 

 

2,999

 

Miscellaneous income (expense), net

 

12

 

 

 

154

 

 

 

328

 

 

(7,489

)

 

 

(6,995

)

Equity Income

 

-

 

 

 

43,813

 

 

 

-

 

 

(578

)

 

 

43,235

 

Adjusted EBITDA (1)

 

25,649

 

 

 

53,059

 

 

 

(2,667

)

 

(9,170

)

 

 

66,871

 

 

 

Three Months Ended February 28, 2023

 

(In thousands)

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

Unallocated Corporate and Other

 

 

Consolidated (5)

 

Net sales

$

130,684

 

 

$

183,839

 

 

$

31,792

 

$

-

 

 

$

346,315

 

Impairment of long-lived assets

 

-

 

 

 

484

 

 

 

-

 

 

-

 

 

 

484

 

Restructuring and other expense, net

 

206

 

 

 

617

 

 

 

-

 

 

-

 

 

 

823

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

2,305

 

 

 

2,305

 

Miscellaneous income (expense), net

 

(12

)

 

 

122

 

 

 

(37

)

 

144

 

 

 

217

 

Equity Income

 

-

 

 

 

37,836

 

 

 

-

 

 

(725

)

 

 

37,111

 

Adjusted EBITDA (2)(4)

 

21,100

 

 

 

58,097

 

 

 

212

 

 

(9,193

)

 

 

70,216

 

 

 

 

Nine Months Ended February 29, 2024

 

(In thousands)

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

Unallocated Corporate and Other

 

 

Consolidated (5)

 

Net sales

$

369,923

 

 

$

465,421

 

 

$

91,558

 

$

-

 

 

$

926,902

 

Restructuring and other expense, net

 

-

 

 

 

84

 

 

 

-

 

 

620

 

 

 

704

 

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

12,465

 

 

 

12,465

 

Miscellaneous income (expense), net

 

49

 

 

 

452

 

 

 

1,165

 

 

(7,649

)

 

 

(5,983

)

Loss on extinguishment of debt

 

-

 

 

 

-

 

 

 

-

 

 

(1,534

)

 

 

(1,534

)

Equity Income

 

-

 

 

 

124,032

 

 

 

-

 

 

3,296

 

 

 

127,328

 

Adjusted EBITDA (1)(2)(3)(4)

 

52,537

 

 

 

158,501

 

 

 

(6,434

)

 

(16,775

)

 

 

187,829

 

 

 

Nine Months Ended February 29, 2023

 

(In thousands)

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

Unallocated Corporate and Other

 

 

Consolidated (5)

 

Net sales

$

406,479

 

 

$

542,536

 

 

$

100,679

 

$

-

 

 

$

1,049,694

 

Impairment of long-lived assets

 

-

 

 

 

484

 

 

 

-

 

 

-

 

 

 

484

 

Restructuring and other expense (income), net

 

206

 

 

 

617

 

 

 

-

 

 

(1,177

)

 

 

(354

)

Separation costs

 

-

 

 

 

-

 

 

 

-

 

 

3,572

 

 

 

3,572

 

Miscellaneous income (expense), net

 

(78

)

 

 

405

 

 

 

19

 

 

(4,845

)

 

 

(4,499

)

Equity Income

 

-

 

 

 

116,809

 

 

 

-

 

 

(14,805

)

 

 

102,004

 

Adjusted EBITDA (1)(2)(4)

 

67,846

 

 

 

157,458

 

 

 

2,932

 

 

(15,948

)

 

 

212,288

 

 

 

 

(1)
Excludes pre-tax charges of $8,103 and $4,774 from separate pension lift-out transactions completed in February 2024 and August 2022, respectively, to transfer the pension benefit obligation under The Gerstenslager Company Bargaining Unit Employees’ Pension Plan to third-party insurance companies.
(2)
Excludes the following items reflected in Equity Income in our consolidated statements of earnings:
•
For the nine months ended February 29, 2024, our share of the gain realized by our engineered cabs joint venture, Workhorse, in connection with the sale of the joint venture’s operations in Brazil, which totaled $2,780 on a pre-tax basis.
•
For the nine months ended February 28, 2023, the loss realized in connection with the August 3, 2022, sale of our then 50% noncontrolling equity investment in ArtiFlex, or $16,059 on a pre-tax basis, including $300 of transaction costs during the three months ended February 28, 2023.
(3)
Excludes a pre-tax loss of $1,534 realized in connection with the July 28, 2023, early redemption of the 2026 Notes. The loss resulted primarily from unamortized issuance costs and discount included in the carrying amount of the 2026 Notes and the acceleration of the remaining unamortized loss in equity related to a treasury lock derivative instrument executed in connection with the issuance of the 2026 Notes.
(4)
Reflects reductions in 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 Worthington Steel but did not meet the requirements to be presented as discontinued operations.
(5)
A reconciliation of net earnings from continuing operations (the most comparable GAAP financial measure) to consolidated adjusted EBITDA is included in the MD&A “Results of Operations” section of this Form 10-Q for the respective three and nine months ended February 29, 2024 and February 28, 2023.

 

Total assets for each of our reportable segments at the dates indicated were as follows:

 

 

February 29,

 

 

May 31,

 

(In thousands)

2024

 

 

2023

 

Consumer Products

$

566,715

 

 

$

544,911

 

Building Products

 

678,699

 

 

 

706,169

 

Sustainable Energy Solutions

 

144,543

 

 

 

129,872

 

Unallocated Corporate and Other

 

314,732

 

 

 

509,170

 

Total assets of continuing operations

$

1,704,689

 

 

$

1,890,122