Ohio
(State or other jurisdiction
of incorporation)
|
1-8399
(Commission
File Number)
|
31-1189815
(IRS Employer
Identification No.)
|
200 Old Wilson Bridge Road, Columbus, Ohio
(Address of principal executive offices) |
43085
(Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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)) |
(a) – (c) | Not applicable. |
(d) | Exhibits: The following exhibit is furnished with this Current Report on Form 8-K: |
Exhibit No. | Description |
99.1 | News Release issued by Worthington Industries, Inc. on September 24, 2014. |
WORTHINGTON INDUSTRIES, INC. | ||
Date: September 25, 2014 | ||
By: | /s/Dale T. Brinkman | |
Dale T. Brinkman, Vice President- | ||
Administration, General Counsel & Secretary |
(U.S. dollars in millions, except per share data)
|
||||||||||||
1Q 2015 | 4Q 2014 | 1Q 2014 | ||||||||||
Net sales
|
$ | 862.4 | $ | 891.0 | $ | 692.3 | ||||||
Operating income
|
52.2 | 32.3 | 38.6 | |||||||||
Equity income
|
27.9 | 22.2 | 27.0 | |||||||||
Net earnings
|
44.2 | 33.2 | 54.6 | |||||||||
Earnings per share
|
$ | 0.63 | $ | 0.47 | $ | 0.76 | ||||||
|
·
|
On August 1, 2014, the Company acquired Midstream Equipment Fabrication, LLC (MEF) for cash consideration of $35.2 million and the assumption of certain liabilities. MEF manufactures patented horizontal heated and high pressure separators used to separate oilfield fluids and gas for customers drilling in the Eagle Ford Shale and is well-situated to serve customers in the Permian Basin.
|
|
·
|
On July 31, 2014, the Company acquired James Russell Engineering Works, Inc. (JRE) for cash consideration of $1.6 million. JRE manufactures aluminum and stainless steel cryogenic transport trailers used for hauling liquid oxygen, nitrogen, argon, hydrogen and liquefied natural gas (LNG) for top producers and distributors of industrial gases and LNG.
|
|
·
|
During the quarter, the Company repurchased a total of 490,800 common shares for $20.1 million at an average price of $40.90.
|
|
·
|
On September 24, 2014, the board of directors declared a quarterly dividend of $0.18 per share payable on December 29, 2014 to shareholders of record on December 15, 2014.
|
WORTHINGTON INDUSTRIES, INC.
|
|||||||||
CONSOLIDATED STATEMENTS OF EARNINGS
|
|||||||||
(In thousands, except per share amounts)
|
|||||||||
Three Months Ended
|
|||||||||
August 31,
|
|||||||||
2014
|
2013
|
||||||||
Net sales
|
$
|
862,414
|
$
|
692,291
|
|||||
Cost of goods sold
|
732,907
|
581,327
|
|||||||
Gross margin
|
129,507
|
110,964
|
|||||||
Selling, general and administrative expense
|
75,255
|
71,540
|
|||||||
Impairment of long-lived assets
|
1,950
|
4,641
|
|||||||
Restructuring and other income
|
(7
|
)
|
(3,997
|
)
|
|||||
Joint venture transactions
|
107
|
142
|
|||||||
Operating income
|
52,202
|
38,638
|
|||||||
Other income (expense):
|
|||||||||
Miscellaneous income
|
323
|
10,937
|
|||||||
Interest expense
|
(9,516
|
)
|
(6,240
|
)
|
|||||
Equity in net income of unconsolidated affiliates
|
27,924
|
26,951
|
|||||||
Earnings before income taxes
|
70,933
|
70,286
|
|||||||
Income tax expense
|
22,113
|
13,933
|
|||||||
Net earnings
|
48,820
|
56,353
|
|||||||
Net earnings attributable to noncontrolling interest
|
4,652
|
1,796
|
|||||||
Net earnings attributable to controlling interest
|
$
|
44,168
|
$
|
54,557
|
|||||
Basic
|
|||||||||
Average common shares outstanding
|
67,567
|
69,601
|
|||||||
Earnings per share attributable to controlling interest
|
$
|
0.65
|
$
|
0.78
|
|||||
Diluted
|
|||||||||
Average common shares outstanding
|
69,738
|
72,083
|
|||||||
Earnings per share attributable to controlling interest
|
$
|
0.63
|
$
|
0.76
|
|||||
Common shares outstanding at end of period
|
67,424
|
69,373
|
|||||||
Cash dividends declared per share
|
$
|
0.18
|
$
|
0.15
|
WORTHINGTON INDUSTRIES, INC.
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
(In thousands)
|
||||||||
August 31,
|
May 31,
|
|||||||
2014
|
2014
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 146,921 | $ | 190,079 | ||||
Receivables, less allowances of $3,024 and $3,043 at August 31, 2014 and May 31, 2014, respectively
|
486,005 | 493,127 | ||||||
Inventories:
|
||||||||
Raw materials
|
237,427 | 213,173 | ||||||
Work in process
|
138,616 | 105,872 | ||||||
Finished products
|
91,519 | 90,957 | ||||||
Total inventories
|
467,562 | 410,002 | ||||||
Income taxes receivable
|
3,354 | 5,438 | ||||||
Assets held for sale
|
31,749 | 32,235 | ||||||
Deferred income taxes
|
23,321 | 24,272 | ||||||
Prepaid expenses and other current assets
|
45,632 | 43,769 | ||||||
Total current assets
|
1,204,544 | 1,198,922 | ||||||
Investments in unconsolidated affiliates
|
196,373 | 179,113 | ||||||
Goodwill
|
269,357 | 251,093 | ||||||
Other intangible assets, net of accumulated amortization of $40,182 and $35,506 at August 31, 2014 and May 31, 2014, respectively
|
153,018 | 145,993 | ||||||
Other assets
|
27,264 | 22,399 | ||||||
Property, plant & equipment:
|
||||||||
Land
|
15,263 | 15,260 | ||||||
Buildings and improvements
|
217,388 | 213,848 | ||||||
Machinery and equipment
|
861,580 | 848,889 | ||||||
Construction in progress
|
32,947 | 32,135 | ||||||
Total property, plant & equipment
|
1,127,178 | 1,110,132 | ||||||
Less: accumulated depreciation
|
623,038 | 611,271 | ||||||
Property, plant and equipment, net
|
504,140 | 498,861 | ||||||
Total assets
|
$ | 2,354,696 | $ | 2,296,381 | ||||
Liabilities and equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 369,273 | $ | 333,744 | ||||
Short-term borrowings
|
10,965 | 10,362 | ||||||
Accrued compensation, contributions to employee benefit plans and related taxes
|
66,973 | 78,514 | ||||||
Dividends payable
|
12,954 | 11,044 | ||||||
Other accrued items
|
60,569 | 49,873 | ||||||
Income taxes payable
|
17,836 | 4,953 | ||||||
Current maturities of long-term debt
|
101,182 | 101,173 | ||||||
Total current liabilities
|
639,752 | 589,663 | ||||||
Other liabilities
|
74,178 | 76,426 | ||||||
Distributions in excess of investment in unconsolidated affiliate
|
57,772 | 59,287 | ||||||
Long-term debt
|
554,494 | 554,790 | ||||||
Deferred income taxes
|
69,766 | 71,333 | ||||||
Total liabilities
|
1,395,962 | 1,351,499 | ||||||
Shareholders' equity - controlling interest
|
865,869 | 850,812 | ||||||
Noncontrolling interest
|
92,865 | 94,070 | ||||||
Total equity
|
958,734 | 944,882 | ||||||
Total liabilities and equity
|
$ | 2,354,696 | $ | 2,296,381 | ||||
WORTHINGTON INDUSTRIES, INC.
|
|||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|||||||||
(In thousands)
|
|||||||||
Three Months Ended
|
|||||||||
August 31,
|
|||||||||
2014
|
2013
|
||||||||
Operating activities
|
|||||||||
Net earnings
|
$
|
48,820
|
$
|
56,353
|
|||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
|||||||||
Depreciation and amortization
|
20,367
|
19,460
|
|||||||
Impairment of long-lived assets
|
1,950
|
4,641
|
|||||||
Provision for deferred income taxes
|
(535
|
)
|
(8,424
|
)
|
|||||
Bad debt income
|
(203
|
)
|
(481
|
)
|
|||||
Equity in net income of unconsolidated affiliates, net of distributions
|
(6,990
|
)
|
(5,915
|
)
|
|||||
Net gain on sale of assets
|
(2,830
|
)
|
(4,662
|
)
|
|||||
Stock-based compensation
|
4,355
|
3,780
|
|||||||
Excess tax benefits - stock-based compensation
|
(5,132
|
)
|
(4,298
|
)
|
|||||
Gain on previously held equity interest in TWB
|
-
|
(11,000
|
)
|
||||||
Changes in assets and liabilities, net of impact of acquisitions:
|
|||||||||
Receivables
|
12,752
|
7,655
|
|||||||
Inventories
|
(51,217
|
)
|
515
|
||||||
Prepaid expenses and other current assets
|
(2,872
|
)
|
(2,365
|
)
|
|||||
Other assets
|
121
|
436
|
|||||||
Accounts payable and accrued expenses
|
41,890
|
40,622
|
|||||||
Other liabilities
|
(5,991
|
)
|
(1,853
|
)
|
|||||
Net cash provided by operating activities
|
54,485
|
94,464
|
|||||||
Investing activities
|
|||||||||
Investment in property, plant and equipment
|
(23,873
|
)
|
(13,354
|
)
|
|||||
Investment in notes receivable
|
(5,000
|
)
|
-
|
||||||
Acquisitions, net of cash acquired
|
(36,550
|
)
|
52,957
|
||||||
Distributions from (investments in) unconsolidated affiliates
|
(3,800
|
)
|
5,555
|
||||||
Proceeds from sale of assets and insurance
|
265
|
7,647
|
|||||||
Net cash provided (used) by investing activities
|
(68,958
|
)
|
52,805
|
||||||
Financing activities
|
|||||||||
Net proceeds from (repayments of) short-term borrowings
|
555
|
(51,541
|
)
|
||||||
Principal payments on long-term debt
|
(302
|
)
|
(284
|
)
|
|||||
Proceeds from (payments for) issuance of common shares
|
(1,020
|
)
|
2,201
|
||||||
Excess tax benefits - stock-based compensation
|
5,132
|
4,298
|
|||||||
Payments to noncontrolling interest
|
(2,867
|
)
|
(1,763
|
)
|
|||||
Repurchase of common shares
|
(20,071
|
)
|
(30,516
|
)
|
|||||
Dividends paid
|
(10,112
|
)
|
-
|
||||||
Net cash used by financing activities
|
(28,685
|
)
|
(77,605
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
(43,158
|
)
|
69,664
|
||||||
Cash and cash equivalents at beginning of period
|
190,079
|
51,385
|
|||||||
Cash and cash equivalents at end of period
|
$
|
146,921
|
$
|
121,049
|
|||||
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
|
||||||||||
August 31,
|
||||||||||
2014
|
2013
|
|||||||||
Volume:
|
||||||||||
Steel Processing (tons)
|
905
|
720
|
||||||||
Pressure Cylinders (units)
|
20,754
|
20,847
|
||||||||
Net sales:
|
||||||||||
Steel Processing
|
$
|
552,331
|
$
|
402,441
|
||||||
Pressure Cylinders
|
248,959
|
216,900
|
||||||||
Engineered Cabs
|
49,554
|
48,461
|
||||||||
Other
|
11,570
|
24,489
|
||||||||
Total net sales
|
$
|
862,414
|
$
|
692,291
|
||||||
Material cost:
|
||||||||||
Steel Processing
|
$
|
394,892
|
$
|
287,712
|
||||||
Pressure Cylinders
|
118,437
|
101,580
|
||||||||
Engineered Cabs
|
22,022
|
22,107
|
||||||||
Selling, general and administrative expense:
|
||||||||||
Steel Processing
|
$
|
31,900
|
$
|
28,819
|
||||||
Pressure Cylinders
|
35,013
|
30,637
|
||||||||
Engineered Cabs
|
6,824
|
6,892
|
||||||||
Other
|
1,518
|
5,192
|
||||||||
Total selling, general and administrative expense
|
$
|
75,255
|
$
|
71,540
|
||||||
Operating income (loss):
|
||||||||||
Steel Processing
|
$
|
35,869
|
$
|
22,663
|
||||||
Pressure Cylinders
|
19,606
|
19,454
|
||||||||
Engineered Cabs
|
(2,145
|
)
|
(304
|
)
|
||||||
Other
|
(1,128
|
)
|
(3,175
|
)
|
||||||
Total operating income
|
$
|
52,202
|
$
|
38,638
|
||||||
The following provides detail of impairment of long-lived assets, restructuring and other expense (income), and joint venture transactions included in operating income by segment presented above.
|
Three Months Ended
|
||||||||
August 31,
|
||||||||
2014
|
2013
|
|||||||
Impairment of long-lived assets:
|
||||||||
Steel Processing
|
$
|
1,950
|
$
|
4,641
|
||||
Pressure Cylinders
|
-
|
-
|
||||||
Engineered Cabs
|
-
|
-
|
||||||
Other
|
-
|
-
|
||||||
Total impairment of long-lived assets
|
$
|
1,950
|
$
|
4,641
|
||||
Restructuring and other expense (income):
|
||||||||
Steel Processing
|
$
|
(30
|
)
|
$
|
(4,762
|
)
|
||
Pressure Cylinders
|
23
|
402
|
||||||
Engineered Cabs
|
-
|
-
|
||||||
Other
|
-
|
363
|
||||||
Total restructuring and other income
|
$
|
(7
|
)
|
$
|
(3,997
|
)
|
||
Joint venture transactions:
|
||||||||
Steel Processing
|
$
|
-
|
$
|
-
|
||||
Pressure Cylinders
|
-
|
-
|
||||||
Engineered Cabs
|
-
|
-
|
||||||
Other
|
107
|
142
|
||||||
Total joint venture transactions
|
$
|
107
|
$
|
142
|
||||
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