Date of Report (Date of earliest event reported):
|
March 21, 2013
|
Ohio
(State or other jurisdiction |
1-8399
(Commission |
31-1189815
(IRS Employer |
of incorporation) | File Number) | Identification No.) |
200 Old Wilson Bridge Road, Columbus, Ohio
(Address of principal executive offices) |
43085
(Zip Code) |
Registrant’s telephone number, including area code:
|
(614) 438-3210
|
|
o
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
o
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
WORTHINGTON INDUSTRIES, INC. | |
Date: March 21, 2013 | By: /s/Dale T. Brinkman |
Dale T. Brinkman, Vice President-Administration, | |
General Counsel and Secretary |
3Q 2013
|
2Q 2013
|
3Q 2012
|
9M2013
|
9M2012
|
||||||||||
Net sales
|
$
|
619.5
|
$
|
622.6
|
$
|
611.3
|
$
|
1,908.2
|
$
|
1,779.3
|
||||
Operating income
|
33.4
|
28.8
|
18.1
|
95.6
|
42.1
|
|||||||||
Equity income
|
25.7
|
25.2
|
24.0
|
73.6
|
70.6
|
|||||||||
Net earnings
|
37.1
|
31.8
|
25.9
|
102.9
|
63.5
|
|||||||||
Earnings per share
|
$
|
0.52
|
$
|
0.45
|
$
|
0.37
|
$
|
1.46
|
$
|
0.90
|
WORTHINGTON INDUSTRIES, INC.
|
|||||||||||||||||
CONSOLIDATED STATEMENTS OF EARNINGS
|
|||||||||||||||||
(In thousands, except per share amounts)
|
|||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
February 28,
|
February 29,
|
February 28,
|
February 29,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Net sales
|
$
|
619,527
|
$
|
611,255
|
$
|
1,908,184
|
$
|
1,779,294
|
|||||||||
Cost of goods sold
|
522,501
|
527,923
|
1,622,651
|
1,567,894
|
|||||||||||||
Gross margin
|
97,026
|
83,332
|
285,533
|
211,400
|
|||||||||||||
Selling, general and administrative expense
|
63,221
|
62,489
|
187,744
|
160,751
|
|||||||||||||
Impairment of long-lived assets
|
-
|
-
|
1,520
|
-
|
|||||||||||||
Restructuring and other expense
|
146
|
956
|
1,811
|
4,707
|
|||||||||||||
Joint venture transactions
|
253
|
1,812
|
(1,188
|
)
|
3,835
|
||||||||||||
Operating income
|
33,406
|
18,075
|
95,646
|
42,107
|
|||||||||||||
Other income (expense):
|
|||||||||||||||||
Miscellaneous income
|
596
|
728
|
1,064
|
1,408
|
|||||||||||||
Interest expense
|
(6,158
|
)
|
(5,073
|
)
|
(17,751
|
)
|
(14,517
|
)
|
|||||||||
Equity in net income of unconsolidated affiliates
|
25,716
|
24,005
|
73,580
|
70,614
|
|||||||||||||
Earnings before income taxes
|
53,560
|
37,735
|
152,539
|
99,612
|
|||||||||||||
Income tax expense
|
16,229
|
9,337
|
47,721
|
28,673
|
|||||||||||||
Net earnings
|
37,331
|
28,398
|
104,818
|
70,939
|
|||||||||||||
Net earnings attributable to noncontrolling interest
|
200
|
2,518
|
1,899
|
7,422
|
|||||||||||||
Net earnings attributable to controlling interest
|
$
|
37,131
|
$
|
25,880
|
$
|
102,919
|
$
|
63,517
|
|||||||||
Basic
|
|||||||||||||||||
Average common shares outstanding
|
69,791
|
68,972
|
68,998
|
69,952
|
|||||||||||||
Earnings per share attributable to controlling interest
|
$
|
0.53
|
$
|
0.38
|
$
|
1.49
|
$
|
0.91
|
|||||||||
Diluted
|
|||||||||||||||||
Average common shares outstanding
|
71,914
|
69,509
|
70,501
|
70,481
|
|||||||||||||
Earnings per share attributable to controlling interest
|
$
|
0.52
|
$
|
0.37
|
$
|
1.46
|
$
|
0.90
|
|||||||||
Common shares outstanding at end of period
|
70,168
|
69,014
|
70,168
|
69,014
|
|||||||||||||
Cash dividends declared per share
|
$
|
0.26
|
$
|
0.12
|
$
|
0.52
|
$
|
0.36
|
WORTHINGTON INDUSTRIES, INC.
|
|||||||||
CONSOLIDATED BALANCE SHEETS
|
|||||||||
(In thousands)
|
|||||||||
February 28,
|
May 31,
|
||||||||
2013
|
2012
|
||||||||
Assets
|
|||||||||
Current assets:
|
|||||||||
Cash and cash equivalents
|
$
|
37,359
|
$
|
41,028
|
|||||
Receivables, less allowances of $3,978 and $3,329 at February 28, 2013 and May 31, 2012, respectively
|
376,534
|
400,869
|
|||||||
Inventories:
|
|||||||||
Raw materials
|
184,033
|
211,543
|
|||||||
Work in process
|
102,782
|
115,510
|
|||||||
Finished products
|
86,567
|
74,887
|
|||||||
Total inventories
|
373,382
|
401,940
|
|||||||
Income taxes receivable
|
15,127
|
892
|
|||||||
Assets held for sale
|
3,040
|
7,202
|
|||||||
Deferred income taxes
|
20,176
|
20,906
|
|||||||
Prepaid expenses and other current assets
|
37,962
|
41,402
|
|||||||
Total current assets
|
863,580
|
914,239
|
|||||||
Investments in unconsolidated affiliates
|
256,262
|
240,882
|
|||||||
Goodwill
|
179,662
|
156,681
|
|||||||
Other intangible assets, net of accumulated amortization of $23,141 and $16,103 at February 28, 2013 and May 31, 2012, respectively
|
112,183
|
100,333
|
|||||||
Other assets
|
18,855
|
22,585
|
|||||||
Property, plant and equipment, net
|
454,640
|
443,077
|
|||||||
Total assets
|
$
|
1,885,182
|
$
|
1,877,797
|
|||||
Liabilities and equity
|
|||||||||
Current liabilities:
|
|||||||||
Accounts payable
|
$
|
245,862
|
$
|
252,334
|
|||||
Short-term borrowings
|
30,588
|
274,923
|
|||||||
Accrued compensation, contributions to employee benefit plans and related taxes
|
62,986
|
71,271
|
|||||||
Dividends payable
|
674
|
8,478
|
|||||||
Other accrued items
|
36,763
|
38,231
|
|||||||
Income taxes payable
|
2,725
|
11,697
|
|||||||
Current maturities of long-term debt
|
1,111
|
1,329
|
|||||||
Total current liabilities
|
380,709
|
658,263
|
|||||||
Other liabilities
|
72,562
|
72,371
|
|||||||
Distributions in excess of investment in unconsolidated affiliate
|
64,128
|
69,165
|
|||||||
Long-term debt
|
406,523
|
257,462
|
|||||||
Deferred income taxes
|
100,465
|
73,099
|
|||||||
Total liabilities
|
1,024,387
|
1,130,360
|
|||||||
Shareholders' equity - controlling interest
|
816,875
|
697,174
|
|||||||
Noncontrolling interest
|
43,920
|
50,263
|
|||||||
Total equity
|
860,795
|
747,437
|
|||||||
Total liabilities and equity
|
$
|
1,885,182
|
$
|
1,877,797
|
WORTHINGTON INDUSTRIES, INC.
|
|||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||||||||||
(In thousands)
|
|||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
February 28,
|
February 29,
|
February 28,
|
February 29,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Operating activities
|
|||||||||||||||||
Net earnings
|
$
|
37,331
|
$
|
28,398
|
$
|
104,818
|
$
|
70,939
|
|||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|||||||||||||||||
Depreciation and amortization
|
17,048
|
14,653
|
48,136
|
40,626
|
|||||||||||||
Impairment of long-lived assets
|
-
|
-
|
1,520
|
-
|
|||||||||||||
Provision for deferred income taxes
|
6,491
|
(667
|
)
|
9,850
|
7,511
|
||||||||||||
Bad debt expense
|
76
|
316
|
575
|
205
|
|||||||||||||
Equity in net income of unconsolidated affiliates, net of distributions
|
(4,841
|
)
|
3,998
|
(19,256
|
)
|
1,711
|
|||||||||||
Net loss (gain) on sale of assets
|
(153
|
)
|
143
|
(222
|
)
|
(1,925
|
)
|
||||||||||
Stock-based compensation
|
3,653
|
2,797
|
10,586
|
8,576
|
|||||||||||||
Excess tax benefits - stock-based compensation
|
(3,455
|
)
|
-
|
(3,455
|
)
|
-
|
|||||||||||
Changes in assets and liabilities, net of impact of acquisitions:
|
|||||||||||||||||
Receivables
|
(41,672
|
)
|
(28,643
|
)
|
27,078
|
27,449
|
|||||||||||
Inventories
|
(15,158
|
)
|
(31,049
|
)
|
42,743
|
23,726
|
|||||||||||
Prepaid expenses and other current assets
|
32
|
9,576
|
1,634
|
13,126
|
|||||||||||||
Other assets
|
198
|
(1,046
|
)
|
3,135
|
1,794
|
||||||||||||
Accounts payable and accrued expenses
|
35,320
|
90,258
|
(34,871
|
)
|
(56,871
|
)
|
|||||||||||
Other liabilities
|
1,434
|
(1,296
|
)
|
3,412
|
86
|
||||||||||||
Net cash provided by operating activities
|
36,304
|
87,438
|
195,683
|
136,953
|
|||||||||||||
Investing activities
|
|||||||||||||||||
Investment in property, plant and equipment, net
|
(9,786
|
)
|
(5,769
|
)
|
(34,402
|
)
|
(15,800
|
)
|
|||||||||
Acquisitions, net of cash acquired
|
-
|
(152,389
|
)
|
(62,110
|
)
|
(232,171
|
)
|
||||||||||
Distributions from unconsolidated affiliates
|
-
|
44,023
|
-
|
43,238
|
|||||||||||||
Proceeds from sale of assets
|
552
|
3,178
|
16,227
|
14,525
|
|||||||||||||
Net cash used by investing activities
|
(9,234
|
)
|
(110,957
|
)
|
(80,285
|
)
|
(190,208
|
)
|
|||||||||
Financing activities
|
|||||||||||||||||
Net proceeds from (repayments of) short-term borrowings
|
(13,390
|
)
|
15,329
|
(251,586
|
)
|
108,460
|
|||||||||||
Proceeds from long-term debt
|
-
|
-
|
150,000
|
-
|
|||||||||||||
Principal payments on long-term debt
|
(365
|
)
|
(95
|
)
|
(1,170
|
)
|
(95
|
)
|
|||||||||
Proceeds from issuance of common shares
|
17,332
|
1,186
|
32,960
|
9,709
|
|||||||||||||
Excess tax benefits - stock-based compensation
|
3,455
|
-
|
3,455
|
-
|
|||||||||||||
Dividends paid to noncontrolling interest, net of contributions
|
(2,592
|
)
|
(3,168
|
)
|
(8,582
|
)
|
(9,744
|
)
|
|||||||||
Repurchase of common shares
|
-
|
-
|
-
|
(52,120
|
)
|
||||||||||||
Dividends paid
|
(27,040
|
)
|
(8,273
|
)
|
(44,144
|
)
|
(23,856
|
)
|
|||||||||
Net cash provided (used) in financing activities
|
(22,600
|
)
|
4,979
|
(119,067
|
)
|
32,354
|
|||||||||||
Increase (decrease) in cash and cash equivalents
|
4,470
|
(18,540
|
)
|
(3,669
|
)
|
(20,901
|
)
|
||||||||||
Cash and cash equivalents at beginning of period
|
32,889
|
53,806
|
41,028
|
56,167
|
|||||||||||||
Cash and cash equivalents at end of period
|
$
|
37,359
|
$
|
35,266
|
$
|
37,359
|
$
|
35,266
|
WORTHINGTON INDUSTRIES, INC.
|
||||||||||||||||||
SUPPLEMENTAL DATA
|
||||||||||||||||||
(In thousands)
|
||||||||||||||||||
This supplemental information is provided to assist in the analysis of the results of operations.
|
||||||||||||||||||
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||
February 28,
|
February 29,
|
February 28,
|
February 29,
|
|||||||||||||||
2013
|
2012
|
2013
|
2012
|
|||||||||||||||
Volume:
|
||||||||||||||||||
Steel Processing (tons)
|
636
|
716
|
1,956
|
2,101
|
||||||||||||||
Pressure Cylinders (units)
|
17,861
|
17,927
|
58,826
|
47,767
|
||||||||||||||
Net sales:
|
||||||||||||||||||
Steel Processing
|
$
|
349,569
|
$
|
367,259
|
$
|
1,068,854
|
$
|
1,148,894
|
||||||||||
Pressure Cylinders
|
205,206
|
187,737
|
606,936
|
533,283
|
||||||||||||||
Engineered Cabs
|
48,628
|
40,173
|
170,927
|
40,173
|
||||||||||||||
Other
|
16,124
|
16,086
|
61,467
|
56,944
|
||||||||||||||
Total net sales
|
$
|
619,527
|
$
|
611,255
|
$
|
1,908,184
|
$
|
1,779,294
|
||||||||||
Material cost:
|
||||||||||||||||||
Steel Processing
|
$
|
249,689
|
265,185
|
$
|
770,584
|
$
|
853,619
|
|||||||||||
Pressure Cylinders
|
95,604
|
92,553
|
285,247
|
269,567
|
||||||||||||||
Engineered Cabs
|
23,806
|
22,116
|
85,857
|
22,116
|
||||||||||||||
Selling, general and administrative expense:
|
||||||||||||||||||
Steel Processing
|
$
|
26,045
|
$
|
28,423
|
$
|
78,918
|
$
|
79,791
|
||||||||||
Pressure Cylinders
|
27,383
|
23,622
|
75,581
|
59,358
|
||||||||||||||
Engineered Cabs
|
6,036
|
4,303
|
20,570
|
4,303
|
||||||||||||||
Other
|
3,757
|
6,141
|
12,675
|
17,299
|
||||||||||||||
Total selling, general and administrative expense
|
$
|
63,221
|
$
|
62,489
|
$
|
187,744
|
$
|
160,751
|
||||||||||
Operating income (loss):
|
||||||||||||||||||
Steel Processing
|
$
|
17,504
|
$
|
15,405
|
$
|
46,837
|
$
|
39,069
|
||||||||||
Pressure Cylinders
|
17,860
|
10,887
|
49,965
|
23,333
|
||||||||||||||
Engineered Cabs
|
108
|
(1,447
|
)
|
5,367
|
(1,447
|
)
|
||||||||||||
Other
|
(2,066
|
)
|
(6,770
|
)
|
(6,523
|
)
|
(18,848
|
)
|
||||||||||
Total operating income
|
$
|
33,406
|
$
|
18,075
|
$
|
95,646
|
$
|
42,107
|
||||||||||
The following provides detail of impairment of long-lived assets, restructuring and other expense, and joint venture transactions included in operating income by segment presented above.
|
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
February 28,
|
February 29,
|
February 28,
|
February 29,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Impairment of long-lived assets and restructuring and other expense:
|
|||||||||||||||||
Steel Processing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||
Pressure Cylinders
|
177
|
-
|
1,703
|
-
|
|||||||||||||
Engineered Cabs
|
-
|
-
|
-
|
-
|
|||||||||||||
Other
|
(31
|
) |
956
|
1,628
|
4,707
|
||||||||||||
Total impairment of long-lived assets and restructuring and other expense
|
$
|
146
|
$
|
956
|
$
|
3,331
|
$
|
4,707
|
|||||||||
Three Months Ended
|
Nine Months Ended
|
||||||||||||||||
February 28,
|
February 29,
|
February 28,
|
February 29,
|
||||||||||||||
2013
|
2012
|
2013
|
2012
|
||||||||||||||
Joint venture transactions:
|
|||||||||||||||||
Steel Processing
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||
Pressure Cylinders
|
-
|
-
|
-
|
-
|
|||||||||||||
Engineered Cabs
|
-
|
-
|
-
|
-
|
|||||||||||||
Other
|
253
|
1,812
|
(1,188
|
)
|
3,835
|
||||||||||||
Total joint venture transactions
|
$
|
253
|
$
|
1,812
|
$
|
(1,188
|
)
|
$
|
3,835
|