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Segment Operations
3 Months Ended
Aug. 31, 2021
Segment Reporting [Abstract]  
Segment Operations

NOTE O – Segment Operations

Segment information is prepared on the same basis that our management reviews financial information for operational decision-making purposes. Factors used to identify reportable operating segments include the nature of the products and services provided by each business, the management reporting structuring, similarity of economic characteristics and certain quantitative measures, as prescribed by authoritative accounting guidance.  

Effective June 1, 2021, we reorganized the management structure of our Pressure Cylinders business to better align around the end markets which it serves, resulting in three new reportable operating segments: Consumer Products, Building Products and Sustainable Energy Solutions.  Our Steel Processing operating segment was not impacted by these changes.  A discussion of each of these new reportable segments is included below.

Consumer Products: This reportable segment is comprised of brands that offer market-leading products in the tools, outdoor living and celebrations end markets with brands that include Coleman®, Bernzomatic®, Balloon Time®, Mag Torch®, General®, Garden-Weasel®, Pactool International®, Hawkeye™ and Worthington Pro-Grade ™.  This market sector includes propane-filled cylinders for torches, camping stoves and other applications, certain propane gas (LPG) cylinders, hand-held torches, Balloon Time® helium-filled balloon kits, and specialized hand tools and instruments.  These products are sold primarily to mass merchandisers, retailers and distributors. LPG cylinders, which hold fuel for barbeque grills and recreational vehicle equipment, are also sold through cylinder exchangers.

Building Products: This reportable segment includes refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products. Cylinders are generally sold to gas producers, and distributors. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential, and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for residential and light commercial heating systems, industrial forklifts and commercial/residential cooking (the latter, generally outside North America).Well water tanks and expansion tanks are used in the residential market with the latter also sold into commercial markets.  Specialty products include a variety of fire suppression and chemical tanks.  

Sustainable Energy Solutions: This reportable segment, which is primarily based in Europe, includes on-board fueling systems and services, as well as gas containment solutions and services for storage, transport and distribution of industrial gases.  It includes high pressure and acetylene cylinders for life support cylinders and alternative fuel cylinders used to hold compressed natural gas (CNG) and hydrogen for automobiles, buses, and light-duty trucks.

Other: Divested businesses historically reported within Pressure Cylinders but no longer included in the Company’s management structure are presented within the “Other” category, on a historical basis, through the date of disposal.  For the periods presented, these include the following:  Structural Composites Industries, LLC (until March 2021); Oil & Gas Equipment (until January 2021); Cryogenic Storage and Cryo-Science (until October 2020). The Other category also includes the results of our former Engineered Cabs operating segment, on a historical basis, through the date of disposition as well as certain income and expense items not allocated to our operating segments.

Prior period financial information has been revised to reflect the operating results and financial position of the new reportable operating segments. Historical financial information presented herein reflects this change.

Concurrent with the change in management structure described above, the profit measure that the Company’s CODM uses to assess segment performance and allocate resources was changed from operating income to adjusted earnings before interest and taxes (“EBIT”).  In general, adjusted EBIT excludes impairment and restructuring charges (gains), but may also exclude other items that management believes are not reflective of, and thus should not be included when evaluating, the performance of the Company’s ongoing operations. Adjusted EBIT is a non-GAAP measure and is used by management to evaluate segment performance, engage in financial and operational planning and determine incentive compensation because they believe that this measure provides additional perspective and, in some circumstances is more closely correlated to, the performance of the Company’s ongoing operations.

For the periods presented, equity income from our unconsolidated joint ventures is included in the measurement of segment profit as shown in the table below.  The related investment balances are included in segment net assets in the same manner.

 

Unconsolidated Joint Ventures Included in Segment Profit

Steel Processing

 

Consumer Products

 

Building Products

 

Sustainable Energy Solutions

 

Other

Serviacero Worthington

 

N/A

 

WAVE

 

N/A

 

Cabs

 

 

 

 

ClarkDietrich

 

 

 

ArtiFlex

 

 

The following table presents summarized financial information for our reportable segments for the periods indicated, as well as a reconciliation of adjusted EBIT to the most comparable GAAP measure, which is operating income (loss) for purposes of measuring segment profit.

 

 

Three Months Ended August 31, 2021

 

 

Steel Processing

 

 

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

 

Other

 

 

Consolidated

 

Net sales

$

822,810

 

 

$

147,783

 

 

$

114,743

 

 

$

25,482

 

 

$

-

 

 

$

1,110,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

113,482

 

 

$

20,506

 

 

$

5,834

 

 

$

(2,352

)

 

$

(1,673

)

 

$

135,797

 

Restructuring and other income, net

 

(12,131

)

 

 

-

 

 

 

-

 

 

 

(143

)

 

 

-

 

 

 

(12,274

)

Adjusted operating income (loss)

 

101,351

 

 

 

20,506

 

 

 

5,834

 

 

 

(2,495

)

 

 

(1,673

)

 

 

123,523

 

Miscellaneous income (loss), net

 

30

 

 

 

49

 

 

 

(73

)

 

 

(59

)

 

 

683

 

 

 

630

 

Equity in net income of unconsolidated affiliates

 

9,349

 

 

 

-

 

 

 

42,993

 

 

 

-

 

 

 

574

 

 

 

52,916

 

Less net earnings attributable to noncontrolling interests (1)

 

3,038

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

3,038

 

Adjusted earnings (loss) before interest and taxes

$

107,692

 

 

$

20,555

 

 

$

48,754

 

 

$

(2,554

)

 

$

(416

)

 

$

174,031

 

 

 

Three Months Ended August 31, 2020

 

 

Steel Processing

 

 

Consumer Products

 

 

Building Products

 

 

Sustainable Energy Solutions

 

 

Other

 

 

Consolidated

 

Net sales

$

431,020

 

 

$

133,622

 

 

$

88,103

 

 

$

27,857

 

 

$

22,307

 

 

$

702,909

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

$

13,617

 

 

$

23,424

 

 

$

(440

)

 

$

(643

)

 

$

(66,079

)

 

$

(30,121

)

Impairment of long-lived assets

 

-

 

 

 

506

 

 

 

1,423

 

 

 

-

 

 

 

7,995

 

 

 

9,924

 

Restructuring and other expense, net

 

1,471

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

377

 

 

 

1,848

 

Incremental expenses related to Nikola gains

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

49,511

 

 

 

49,511

 

Adjusted operating income (loss)

 

15,088

 

 

 

23,930

 

 

 

983

 

 

 

(643

)

 

 

(8,196

)

 

 

31,162

 

Miscellaneous income (loss), net

 

(43

)

 

 

(21

)

 

 

(161

)

 

 

82

 

 

 

595

 

 

 

452

 

Equity in net income of unconsolidated affiliates

 

1,309

 

 

 

-

 

 

 

22,552

 

 

 

-

 

 

 

(227

)

 

 

23,634

 

Less net earnings attributable to noncontrolling interests (1)

 

2,179

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2,179

 

Adjusted earnings (loss) before interest and taxes

$

14,175

 

 

$

23,909

 

 

$

23,374

 

 

$

(561

)

 

$

(7,828

)

 

$

53,069

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Excludes the noncontrolling interest portion of impairment and restructuring charges (gains) of $(5,946,000) and $116,000 for the three months ended August 31, 2021 and 2020, respectively

 

 

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

 

 

August 31,

2021

 

 

May 31,

2021

 

Total assets

 

 

 

 

 

 

 

Steel Processing

$

1,762,053

 

 

$

1,359,598

 

Consumer Products

 

550,712

 

 

 

541,028

 

Building Products

 

574,077

 

 

 

664,113

 

Sustainable Energy Solutions

 

114,788

 

 

 

169,550

 

Other

 

546,125

 

 

 

638,956

 

Total assets

$

3,547,755

 

 

$

3,373,245