EX-99.1 2 exh99_1.htm EXHIBIT 99.1 exh99_1.htm
 
Exhibit 99.1
 
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Worthington Reports Second Quarter Fiscal 2015 Results
 
 
COLUMBUS, OH--(Marketwired - Dec 17, 2014) - Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $871.0 million and net earnings of $29.5 million, or $0.43 per diluted share, for its fiscal 2015 second quarter ended November 30, 2014. In last year's second quarter, the Company reported net sales of $769.9 million and net earnings of $23.0 million, or $0.32 per diluted share. On an adjusted basis, net earnings were $37.9 million, or $0.55 per diluted share, in the current quarter compared to $40.4 million, or $0.56 per diluted share, in the comparable prior year quarter. A reconciliation to the comparable GAAP financial measures is included in the supplemental financial data.
 
 
Financial highlights for the current and comparative periods are as follows:
 
 
(U.S. dollars in millions, except per share data)
 
                               
      2Q 2015       1Q 2015       2Q 2014       6M 2015       6M 2014  
Net sales
   $ 871.0     $ 862.4     $ 769.9     $ 1,733.4     $ 1,462.2  
Operating income
     33.2       52.2       19.5       85.4       58.1  
Equity income
     22.3       27.9       21.1       50.2       48.0  
Net earnings
     29.5       44.2       23.0       73.6       77.5  
Earnings per share
   $ 0.43     $ 0.63     $ 0.32     $ 1.06     $ 1.08  
                                         
                                         
 
"Steel Processing had a great quarter with increased volume as they continued to perform well," said John McConnell, Chairman and CEO. "However, while we had strong revenue growth across the Company, we were disappointed we did not meet our own Company-wide expectations for results this quarter. We have a couple areas needing attention, particularly one operation in our oil and gas equipment business and one in Engineered Cabs. Both had elevated manufacturing costs and the oil and gas equipment business facility had a product miss on the commercial side. These are isolated issues and we are taking corrective steps so that we continue our Company's forward momentum."
 
 
 
 
 
Consolidated Quarterly Results
 
 
Net sales for the second quarter ended November 30, 2014, were $871.0 million, up 13% from the comparable quarter in the prior year, when net sales were $769.9 million. The increase was driven largely by higher volume in Steel Processing and the impact of recent acquisitions in Pressure Cylinders.
 
 
Gross margin declined $3.0 million from the prior year quarter to $125.2 million. Higher manufacturing expenses in all three business units combined with the unfavorable impact of inventory holding losses in Steel Processing in the current quarter, compared to inventory holding gains in the prior year quarter, more than offset the impact of higher volume.
 
 
Operating income increased $13.7 million in the current quarter to $33.2 million as impairment charges in the current quarter were down $16.5 million from the prior year. Impairment charges in the current quarter include $6.3 million related to the Company's 60%-owned consolidated joint venture in India, $3.2 million related to the Company's aluminum high-pressure cylinder business in New Albany, Miss., $2.4 million related to the Advanced Component Technologies business in Engineered Cabs, $1.2 million related to the military construction business and $1.1 million related to certain non-core Steel Processing assets. The prior year included a $30.7 million impairment charge related to the write-off of certain trade name assets.
 
 
Interest expense was $9.7 million for the current quarter, compared to $6.3 million in the comparable period in the prior year. The increase was due to the impact of higher average debt levels resulting from the issuance of $250.0 million of notes in April 2014.
 
 
Equity in net income from unconsolidated joint ventures increased $1.2 million over the prior year quarter to $22.3 million on net sales of $388.7 million. The overall increase was driven by WAVE and ArtiFlex, where Worthington's portion of equity income increased by $2.2 million and $1.3 million, respectively. However, income from ClarkDietrich decreased $1.9 million on lower volumes.
 
 
Income tax expense was $15.6 million in the current quarter compared to $8.5 million in the comparable quarter in the prior year. The increase was due to higher earnings and a higher effective tax rate. Tax expense in the current quarter reflects an estimated annual effective rate of 33.5% compared to 27.8% for the prior year quarter.
 
 
 
 
 
 
Balance Sheet
 
 
At quarter end, total debt was $685.6 million, up $19.0 million from August 31, 2014, as a result of borrowings against a long-term credit facility entered into by the consolidated joint venture in Turkey in September 2014. The Company had $96.5 million of cash at quarter end, which will be used to repay $100.0 million of current notes due in December 2014.
 
 
Quarterly Segment Results
 
 
Steel Processing's net sales of $552.8 million were up 12%, or $60.6 million, due to the combined impact of higher volume and higher average selling prices. Operating income decreased slightly from the prior year quarter to $33.9 million due to higher manufacturing expenses and the unfavorable impact of inventory holding losses in the current quarter compared to inventory holding gains in the prior year quarter. The change between the inventory holding gains and losses more than offset the impact of higher volume.
 
 
Pressure Cylinders' net sales of $252.7 million were up 18%, or $38.7 million, from the comparable prior year quarter driven by recent acquisitions. Operating income increased $1.3 million over the prior year quarter to $9.6 million as contributions from recent acquisitions were largely offset by higher manufacturing and SG&A expense.
 
 
Engineered Cabs' net sales increased $3.7 million in the current quarter to $51.5 million on higher volume. Operating loss in the current quarter decreased $15.3 million to $5.6 million due to the favorable impact of lower impairment charges, which were down $16.7 million from the prior year quarter. Excluding the impact of the impairment charges, operating income was down $1.4 million largely due to several start-up programs driving an increase in manufacturing expenses.
 
 
The "Other" category includes the Construction Services and Energy Innovations operating segments, as well as non-allocated corporate expenses. Operations in the "Other" category reported net sales of $14.0 million, a decrease of $1.9 million from the prior year quarter, mostly due to reductions in the Energy Innovations business. The "Other" category reported an operating loss of $4.7 million driven by losses within Construction Services, which included a $1.2 million impairment charge related to the military construction business.
 
 
 
 
 
 
 
Recent Business Developments
 

 
·
On October 20, 2014, the Company acquired an 80% interest in dHybrid Systems, LLC, a leader in compressed natural gas fuel systems for large trucks. The remaining 20% was retained by the founding member.
 
 
·
On November 13, 2014, the Company’s consolidated tailor welded blanking joint venture, TWB, opened a new facility in Cambridge, Ontario.  The facility will initially operate one laser welding line with the capacity to produce 2 million tailor welded blanks per year.
 
 
·
During the quarter, the Company repurchased a total of 600,000 common shares for $21.5 million at an average price of $35.91.
 
 
 
·
On December 17, 2014, Worthington Industries board of directors declared a quarterly dividend of $0.18 per share payable on March 27, 2015 to shareholders of record on March 13, 2015.
 
 
 
 
 
 
Outlook
 
 
"There are solid areas of growth, particularly in automotive, where we are working with our customers on a number of initiatives including light weighting solutions," McConnell said. "We expect Steel Processing to continue to perform well. There are some markets, like agriculture, where we are seeing slower demand. However, the Company is on track to continue to reach our primary goal of year-over-year earnings growth and positive cash flow."
 
 
Conference Call
 
 
Worthington will review second quarter results during its quarterly conference call on December 18, 2014, at 10:30 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 is a leading global diversified metals manufacturing company with 2014 fiscal year sales of $3.1 billion. Headquartered in Columbus, Ohio, Worthington is North America's premier value-added steel processor providing customers with wide ranging capabilities, products and services for a variety of markets including automotive, construction and agriculture; a global leader in manufacturing pressure cylinders for industrial gas and cryogenic applications, CNG and LNG storage, transportation and alternative fuel tanks, oil and gas equipment, and brand consumer products for camping, grilling, hand torch solutions, scuba diving and helium balloon kits; and a manufacturer of operator cabs for heavy mobile industrial equipment; laser welded blanks for light weighting applications; automotive racking solutions; and through joint ventures, complete ceiling grid solutions; automotive tooling and stampings; and steel framing for commercial construction. Worthington employs approximately 11,000 people and operates 82 facilities in 10 countries.
 
 
Founded in 1955, the Company operates under a long-standing corporate philosophy rooted in the golden rule. Earning money for its shareholders is the first corporate goal. This philosophy serves as the basis for an unwavering commitment to the customer, supplier, and shareholder, and as the Company's foundation for one of the strongest employee-employer partnerships in American industry.
 
 
 
 
 
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 outlook, strategy or business plans; the ability to correct performance issues at operations; future or expected growth, forward momentum, performance, sales, volumes, cash flows, earnings, balance sheet strengths, debt, financial condition or other financial measures; projected profitability potential, capacity, and working capital needs; demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; pricing trends for raw materials and finished goods and the impact of pricing changes; anticipated capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, newly-created joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to maintain margins and 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; expected benefits from transformation plans, cost reduction efforts and other new initiatives; expectations for increasing volatility or improving and sustaining 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 effect of national, regional and worldwide economic conditions generally and within major product markets, including a recurrent slowing economy; the effect of conditions in national and worldwide financial markets; 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; 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 other 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 industry 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, acts of war or 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 exposure and the acceptance of our products in these markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the outcome of adverse claims experience with respect to workers' compensation, product recalls or product liability, casualty events or other matters; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; level of imports and import prices in the Company's markets; 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 Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of changes to healthcare laws in the United States which may increase our healthcare and other costs and negatively impact our operations and financial results; 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 our Annual Report on Form 10-K for the fiscal year ended May 31, 2014.
 
 
 
 
 
   
WORTHINGTON INDUSTRIES, INC.
  
CONSOLIDATED STATEMENTS OF EARNINGS
  
(In thousands, except per share amounts)
  
   
   
   
Three Months Ended
    
Six Months Ended
  
   
November 30,
    
November 30,
  
   
2014
    
2013
    
2014
    
2013
  
Net sales
  
$
871,012
    
$
769,900
    
$
1,733,426
    
$
1,462,191
  
Cost of goods sold
    
745,789
      
641,668
      
1,478,696
      
1,222,995
  
Gross margin
    
125,223
      
128,232
      
254,730
      
239,196
  
Selling, general and administrative expense
    
77,308
      
78,395
      
152,563
      
149,935
  
Impairment of long-lived assets
    
14,235
      
30,734
      
16,185
      
35,375
  
Restructuring and other expense (income)
    
405
      
(1,182
)
    
398
      
(5,179
)
Joint venture transactions
    
83
      
786
      
190
      
928
  
Operating income
    
33,192
      
19,499
      
85,394
      
58,137
  
Other income (expense):
                                
Miscellaneous income
    
1,220
      
2,472
      
1,543
      
13,409
  
Interest expense
    
(9,676
)
    
(6,258
)
    
(19,192
)
    
(12,498
)
Equity in net income of unconsolidated affiliates
    
22,319
      
21,086
      
50,243
      
48,037
  
Earnings before income taxes
    
47,055
      
36,799
      
117,988
      
107,085
  
Income tax expense
    
15,600
      
8,459
      
37,713
      
22,392
  
Net earnings
    
31,455
      
28,340
      
80,275
      
84,693
  
Net earnings attributable to noncontrolling interest
    
1,993
      
5,363
      
6,645
      
7,159
  
Net earnings attributable to controlling interest
  
$
29,462
    
$
22,977
    
$
73,630
    
$
77,534
  
                                 
Basic
                                
Average common shares outstanding
    
67,105
      
69,304
      
67,337
      
69,454
  
Earnings per share attributable to controlling interest
  
$
0.44
    
$
0.33
    
$
1.09
    
$
1.12
  
                                 
Diluted
                                
Average common shares outstanding
    
69,181
      
71,826
      
69,780
      
72,089
  
Earnings per share attributable to controlling interest
  
$
0.43
    
$
0.32
    
$
1.06
    
$
1.08
  
                                 
                                 
Common shares outstanding at end of period
    
66,912
      
69,138
      
66,912
      
69,138
  
                                 
Cash dividends declared per share
  
$
0.18
    
$
0.15
    
$
0.36
    
$
0.30
  
                                 
                                 
 
 
 
 
 
WORTHINGTON INDUSTRIES, INC.
  
CONSOLIDATED BALANCE SHEETS
  
(In thousands)
  
   
   
 
November 30,
     May 31,  
 
2014
     2014  
Assets
            
Current assets:
            
Cash and cash equivalents
   $ 96,537     $ 190,079  
Receivables, less allowances of $2,997 and $3,043 at November 30, 2014 and May 31, 2014, respectively
     491,687       493,127  
Inventories:
                
Raw materials
     236,126       213,173  
Work in process
     118,796       105,872  
Finished products
     99,853       90,957  
Total inventories
     454,775       410,002  
Income taxes receivable
     13,757       5,438  
Assets held for sale
     28,264       32,235  
Deferred income taxes
     23,064       24,272  
Prepaid expenses and other current assets
     46,310       43,769  
Total current assets
     1,154,394       1,198,922  
                 
Investments in unconsolidated affiliates
     194,686       179,113  
Goodwill
     283,418       251,093  
Other intangible assets, net of accumulated amortization of $45,500 and $35,506 at November 30, 2014 and May 31, 2014, respectively
     150,534       145,993  
Other assets
     22,450       22,399  
Property, plant & equipment:
                
Land
     15,238       15,260  
Buildings and improvements
     218,801       213,848  
Machinery and equipment
     853,219       848,889  
Construction in progress
     43,115       32,135  
Total property, plant & equipment
     1,130,373       1,110,132  
Less: accumulated depreciation
     628,464       611,271  
Property, plant and equipment, net
     501,909       498,861  
Total assets
   $ 2,307,391     $ 2,296,381  
                 
Liabilities and equity
                
Current liabilities:
                
Accounts payable
   $ 324,886     $ 333,744  
Short-term borrowings
     10,769       10,362  
Accrued compensation, contributions to employee benefit plans and related taxes
     62,985       78,514  
Dividends payable
     13,010       11,044  
Other accrued items
     60,961       49,873  
Income taxes payable
     4,396       4,953  
Current maturities of long-term debt
     101,140       101,173  
Total current liabilities
     578,147       589,663  
                 
Other liabilities
     62,297       76,426  
Distributions in excess of investment in unconsolidated affiliate
     59,576       59,287  
Long-term debt
     573,734       554,790  
Deferred income taxes
     62,629       71,333  
Total liabilities
     1,336,383       1,351,499  
                 
Shareholders' equity - controlling interest
     872,502       850,812  
Noncontrolling interest
     98,506       94,070  
Total equity
     971,008       944,882  
Total liabilities and equity
   $ 2,307,391     $ 2,296,381  
 
 
 
 
 
 
WORTHINGTON INDUSTRIES, INC.
  
CONSOLIDATED STATEMENTS OF CASH FLOWS
  
(In thousands)
  
   
               
   
Three Months Ended
    
Six Months Ended
  
   
November 30,
    
November 30,
  
   
2014
    
2013
    
2014
    
2013
  
Operating activities
                                
Net earnings
  
$
31,455
    
$
28,340
    
$
80,275
    
$
84,693
  
Adjustments to reconcile net earnings to net cash provided by operating activities:
                                
Depreciation and amortization
    
21,200
      
20,095
      
41,567
      
39,555
  
Impairment of long-lived assets
    
14,235
      
30,734
      
16,185
      
35,375
  
Provision for deferred income taxes
    
(5,492
)
    
(13,110
)
    
(6,027
)
    
(21,534
)
Bad debt expense (income)
    
143
      
185
      
(60
)
    
(296
)
Equity in net income of unconsolidated affiliates, net of distributions
    
(813
)
    
(3,506
)
    
(7,803
)
    
(9,421
)
Net loss (gain) on sale of assets
    
3,264
      
(7,188
)
    
434
      
(11,850
)
Stock-based compensation
    
4,498
      
4,722
      
8,853
      
8,502
  
Excess tax benefits - stock-based compensation
    
(621
)
    
(1,534
)
    
(5,753
)
    
(5,832
)
Gain on previously held equity interest in TWB
    
-
      
-
      
-
      
(11,000
)
Changes in assets and liabilities, net of impact of acquisitions:
                                
Receivables
    
(6,916
)
    
7,574
      
5,836
      
15,229
  
Inventories
    
16,087
      
(21,838
)
    
(35,130
)
    
(21,323
)
Prepaid expenses and other current assets
    
(5,232
)
    
4,072
      
(8,104
)
    
1,707
  
Other assets
    
3,095
      
139
      
3,216
      
575
  
Accounts payable and accrued expenses
    
(72,095
)
    
(23,922
)
    
(30,205
)
    
16,700
  
Other liabilities
    
(505
)
    
4,556
      
(6,496
)
    
2,703
  
Net cash provided by operating activities
    
2,303
      
29,319
      
56,788
      
123,783
  
                                 
Investing activities
                                
Investment in property, plant and equipment
    
(23,273
)
    
(17,060
)
    
(47,146
)
    
(30,414
)
Investment in notes receivable
    
(2,300
)
    
-
      
(7,300
)
    
-
  
Acquisitions, net of cash acquired
    
(14,543
)
    
276
      
(51,093
)
    
53,233
  
Distributions from (investments in) unconsolidated affiliates
    
129
      
3,668
      
(3,671
)
    
9,223
  
Proceeds from sale of assets and insurance
    
27
      
16,086
      
292
      
23,733
  
Net cash provided (used) by investing activities
    
(39,960
)
    
2,970
      
(108,918
)
    
55,775
  
                                 
Financing activities
                                
Net proceeds from (repayments of) short-term borrowings
    
(196
)
    
(18,736
)
    
359
      
(70,277
)
Proceeds from long-term debt
    
20,480
      
-
      
20,480
      
-
  
Principal payments on long-term debt
    
(511
)
    
(285
)
    
(813
)
    
(569
)
Proceeds from (payments for) issuance of common shares
    
566
      
4,286
      
(454
)
    
6,487
  
Excess tax benefits - stock-based compensation
    
621
      
1,534
      
5,753
      
5,832
  
Payments to noncontrolling interest
    
-
      
(875
)
    
(2,867
)
    
(2,638
)
Repurchase of common shares
    
(21,549
)
    
(19,800
)
    
(41,620
)
    
(50,316
)
Dividends paid
    
(12,138
)
    
(10,407
)
    
(22,250
)
    
(10,407
)
Net cash used by financing activities
    
(12,727
)
    
(44,283
)
    
(41,412
)
    
(121,888
)
                                 
Increase (decrease) in cash and cash equivalents
    
(50,384
)
    
(11,994
)
    
(93,542
)
    
57,670
  
Cash and cash equivalents at beginning of period
    
146,921
      
121,049
      
190,079
      
51,385
  
Cash and cash equivalents at end of period
  
$
96,537
    
$
109,055
    
$
96,537
    
$
109,055
  
                                 
                                 
 
 
 
 

 
   
WORTHINGTON INDUSTRIES, INC.
  
SUPPLEMENTAL DATA
  
(In thousands, except Pressure Cylinders units)
  
   
This supplemental information is provided to assist in the analysis of the results of operations.
  
   
   
Three Months Ended
    
Six Months Ended
  
   
November 30,
    
November 30,
  
   
2014
    
2013
    
2014
    
2013
  
Volume:
                                
Steel Processing (tons)
    
899
      
817
      
1,804
      
1,536
  
Pressure Cylinders (units)
    
19,454,423
      
17,693,730
      
40,208,384
      
38,540,607
  
                                 
Net sales:
                                
Steel Processing
  
$
552,756
    
$
492,134
    
$
1,105,087
    
$
894,575
  
Pressure Cylinders
    
252,744
      
214,022
      
501,703
      
430,922
  
Engineered Cabs
    
51,540
      
47,868
      
101,094
      
96,329
  
Other
    
13,972
      
15,876
      
25,542
      
40,365
  
Total net sales
  
$
871,012
    
$
769,900
    
$
1,733,426
    
$
1,462,191
  
                                 
Material cost:
                                
Steel Processing
  
$
400,677
    
$
349,860
    
$
795,569
    
$
637,572
  
Pressure Cylinders
    
115,832
      
95,234
      
234,269
      
196,814
  
Engineered Cabs
    
23,674
      
21,522
      
45,696
      
43,629
  
                                 
Selling, general and administrative expense:
                                
Steel Processing
  
$
30,253
    
$
34,638
    
$
62,153
    
$
63,457
  
Pressure Cylinders
    
35,941
      
32,630
      
70,954
      
63,267
  
Engineered Cabs
    
7,086
      
8,105
      
13,910
      
14,997
  
Other
    
4,028
      
3,022
      
5,546
      
8,214
  
Total selling, general and administrative expense
  
$
77,308
    
$
78,395
    
$
152,563
    
$
149,935
  
                                 
Operating income (loss):
                                
Steel Processing
  
$
33,877
    
$
34,786
    
$
69,746
    
$
57,449
  
Pressure Cylinders
    
9,580
      
8,275
      
29,186
      
27,729
  
Engineered Cabs
    
(5,609
)
    
(20,892
)
    
(7,754
)
    
(21,196
)
Other
    
(4,656
)
    
(2,670
)
    
(5,784
)
    
(5,845
)
Total operating income
  
$
33,192
    
$
19,499
    
$
85,394
    
$
58,137
  
                                 
                                 
The following provides detail of Pressure Cylinders net sales and volume by principal class of products.
  
   
   
Three Months Ended
    
Six Months Ended
  
   
November 30,
    
November 30,
  
   
2014
    
2013
    
2014
    
2013
  
Volume (units):
                                
Consumer Products
    
13,492,863
      
11,304,860
      
28,088,649
      
25,752,635
  
Industrial Products
    
5,869,129
      
6,298,973
      
11,937,000
      
12,614,131
  
Alternative Fuels
    
88,510
      
87,242
      
172,819
      
168,463
  
Oil and Gas Equipment
    
3,646
      
2,655
      
7,583
      
5,378
  
Cryogenics
    
275
      
-
      
2,333
      
-
  
Total Pressure Cylinders
    
19,454,423
      
17,693,730
      
40,208,384
      
38,540,607
  
                                 
Net sales:
                                
Consumer Products
  
$
62,213
    
$
52,639
    
$
129,745
    
$
115,541
  
Industrial Products
    
103,921
      
109,999
      
210,137
      
213,748
  
Alternative Fuels
    
17,045
      
16,333
      
32,603
      
33,554
  
Oil and Gas Equipment
    
63,170
      
35,051
      
117,679
      
68,079
  
Cryogenics
    
6,395
      
-
      
11,539
      
-
  
Total Pressure Cylinders
  
$
252,744
    
$
214,022
    
$
501,703
    
$
430,922
  
                                 
                                 
 
 
 
 
 
WORTHINGTON INDUSTRIES, INC.
SUPPLEMENTAL DATA
(In thousands)
 
The following provides detail of impairment of long-lived assets, restructuring and other expense (income), and joint venture transactions included in operating income (loss) by segment presented above.
 
     
Three Months Ended
    
Six Months Ended
  
     
November 30,
    
November 30,
  
     
2014
    
2013
    
2014
    
2013
  
Impairment of long-lived assets:
                        
Steel Processing
   $ 1,100     $ -     $ 3,050     $ 4,641  
Pressure Cylinders
     9,567       11,634       9,567       11,634  
Engineered Cabs
     2,389       19,100       2,389       19,100  
Other
     1,179       -       1,179       -  
Total impairment of long-lived assets
   $ 14,235     $ 30,734     $ 16,185     $ 35,375  
Restructuring and other expense (income):
                            
                                 
Steel Processing
   $ -     $ -     $ (30 )   $ (4,762  
Pressure Cylinders
     405       (1,849 )     428       (1,447  
Engineered Cabs
     -       -       -       -  
Other
     -       667       -       1,030  
Total restructuring and other expense (income)
   $ 405     $ (1,182 )   $ 398     $ (5,179  
                                 
Joint venture transactions:
                            
Steel Processing
   $ -     $ -     $ -     $ -  
Pressure Cylinders
     -       -       -       -  
Engineered Cabs
     -       -       -       -  
Other
     83       786       190       928  
Total joint venture transactions
   $ 83     $ 786     $ 190     $ 928  
 
 
 
 
   
WORTHINGTON INDUSTRIES, INC.
  
GAAP / NON-GAAP RECONCILIATION
  
(In thousands, except per share amounts)
  
   
Adjusted net earnings and adjusted earnings per diluted share are non-GAAP financial measures. In general, the measures exclude impairment and restructuring charges and other nonrecurring items that management does not believe reflect the Company's core businesses. Management uses these non-GAAP financial measures internally to evaluate the Company's operating performance; however, these measures should not be considered a substitute for financial measures calculated in accordance with GAAP. The following provides a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures.
  
                           
 
 
 
 
   
Three Months Ended November 30, 2014
    
Three Months Ended November 30, 2013
  
   
GAAP
    
Non-GAAP
Adjustments
    
Non-GAAP
    
GAAP
    
Non-GAAP
Adjustments
    
Non-GAAP
  
Net sales
   $ 871,012     $ -     $ 871,012     $ 769,900     $ -     $ 769,900  
Cost of goods sold
     745,789       -       745,789       641,668       -       641,668  
Gross margin
     125,223       -       125,223       128,232       -       128,232  
Selling, general and administrative expense
     77,308       -       77,308       78,395       -       78,395  
Impairment of long-lived assets(a)
     14,235       (14,235 )     -       30,734       (30,734 )     -  
Restructuring and other expense (income)
     405       (405 )     -       (1,182 )     1,182       -  
Joint venture transactions
     83       (83 )     -       786       (786 )     -  
Operating income
     33,192       14,723       47,915       19,499       30,338       49,837  
Other income (expense):
                                                
Miscellaneous income(b)
     1,220       (846 )     374       2,472       (2,410 )     62  
Interest expense
     (9,676       -       (9,676 )     (6,258 )     -       (6,258  
Equity in net income of unconsolidated affiliates
     22,319       -       22,319       21,086       -       21,086  
Earnings before income taxes
     47,055       13,877       60,932       36,799       27,928       64,727  
Income tax expense
     15,600       2,887       18,487       8,459       10,521       18,980  
Net earnings
     31,455       10,990       42,445       28,340       17,407       45,747  
Net earnings attributable to noncontrolling interest
     1,993       2,538       4,531       5,363       -       5,363  
Net earnings attributable to controlling interest
   $ 29,462     $ 8,452     $ 37,914     $ 22,977     $ 17,407     $ 40,384  
                                                 
Earnings per diluted share attributable to controlling interest
   $ 0.43     $ 0.12     $ 0.55     $ 0.32     $ 0.24     $ 0.56  
 
 
 
 
(a) Includes $6,346 related to the Company's 60%-owned consolidated joint venture in India, $3,221 related to the Company's aluminum high-pressure cylinders business in New Albany, Mississippi, $2,389 related to the Avanced Component Technologies business within Engineered Cabs, $1,179 related to the military contsruction business and $1,100 related to certain non-core Steel Processing assets for the three months ended November 30, 2014, and $30,734 related to the write-off of certain trade name intangible assets in connection with a re-branding initiative for the three months ended November 30, 2013.
 
(b) Includes income from insurance proceeds of $846 for the three months ended November 30, 2014, and $2,410 for the three months ended November 30, 2013.
 
The sum of the components may not equal the total due to rounding.
 
We apply varying tax rates depending on the item's nature and the tax jurisdiction where it is incurred.
 
Contact Information
 
 
Cathy M. Lyttle
VP, Corporate Communications and Investor Relations
Phone: (614) 438-3077
E-mail: Cathy.Lyttle@WorthingtonIndustries.com


Sonya L. Higginbotham
Director, Corporate Communications
Phone: (614) 438-7391
E-mail: Sonya.Higginbotham@WorthingtonIndustries.com

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