Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Q1 2024 Earnings Presentation
27 slides from Worthington Enterprises's earnings presentation, Sep 28, 2023
Slide 1: Q1 FY 2024 Results / Business Update
Q1 FY 2024 Results / Business Update
Slide 2: $4.7B of Sales in Trailing Twelve Months
$4.7B OF SALES IN TRAILING TWELVE MONTHS 8/31/23 NET SALES BY END-MARKETS ADJ. EBITDA BY SEGMENT TTM* $539.3 MILLION 12% 14% 7% $82.0 4% 8% 4% $230.5 5% 8% $224.5 38% ($1.9) Automotive Construction $4.2 Consumer Products Building Products Steel Consumer Products Machinery & Equipment Agriculture Bui
Slide 3: $1.2B of Sales in Q1 of Fiscal 2024
$1.2B OF SALES IN Q1 OF FISCAL 2024 8/31/23 NET SALES BY END-MARKETS ADJ. EBITDA BY SEGMENT* $164.7 MILLION 13% 11% 6% 3% $94.1 $12.9 9% 4% 5% 8% $59.0 41% $1.6 Automotive Construction $(2.9) Consumer Products Building Products Steel Consumer Products Building Products Sustainable Energy Solutions M
Slide 4: Financial Goals
F IN A N CIA L G O A L S • INCREASE MARGINS / DECREASE ASSET INTENSITY • REDUCE EARNINGS VOLATILITY • MODEST LEVERAGE / AMPLE LIQUIDITY (INVESTMENT GRADE) • BALANCED CAPITAL ALLOCATION • RIGOROUS CAPITAL DISCIPLINE 4
Slide 5: Strong Capital Structure & Liquidity
STRONG CAPITAL STRUCTURE & LIQUIDITY Strong balance sheet with investment grade credit ratings and significant liquidity available enables financial flexibility and shareholder returns Corporate credit ratings: BBB / Baa2 800 700 600 500 $ Millions 400 300 200 $500 100 $200 $150 0 $33 $33 $34 2023 2
Slide 6: Balanced Capital Allocation Strategy
BALANCED CAPITAL ALLOCATION STRATEGY Strong cash flows and significant liquidity support balanced approach to capital allocation focused on growth and rewarding shareholders NEARLY $2.0 BILLION OF CAPITAL DEPLOYED IN PAST 5 YEARS SINCE START OF FY2019 ✓ Reinvest in the business to create value and s
Slide 7: Consolidated Results
CONSOLIDATED RESULTS $ millions, except EPS FY2021 FY2022 FY2023 FY2023 – Q1 FY2024 – Q1 Sales $3,171 $5,242 $4,916 $1,409 $1,193 Adjusted EBIT* $396 $517 $402 $112 $136 % of sales* 12.5% 9.9% 8.2% 8.0% 11.4% Adjusted EBITDA* $483 $615 $515 $140 $165 % of sales* 15.2% 11.7% 10.5% 10.0% 13.8% EPS* $5
Slide 8: Update on Worthington 2024 Plan
UPDATE ON WORTHINGTON 2024 PLAN On September 29th, 2022, Worthington Industries announced plans to separate its Steel Processing business, unlocking value by creating a new standalone public company Transaction Rationale Pro-Forma Structure Timing & Approvals ◼ Creates two standalone, market- ◼ Pro
Slide 9: Corporate Citizenship and Sustainability
CORPORATE CITIZENSHIP AND SUSTAINABILITY Continuing a long history of developing employees, practicing good citizenship and protecting the environment For more details, please see our FY 2023 Citizenship & Sustainability Report located on the “Sustainability” page of our website at: WorthingtonIndus
Slide 10: Supplemental Data
4 WORTHINGTON INDUSTRIES SUPPLEMENTAL DATA
Slide 11: Steel Processing Financials
STEEL PROCESSING FINANCIALS $ millions FY2021 FY2022 FY2023 FY2023 – Q1 FY2024 – Q1 Sales $2,059 $3,933 $3,498 $1,039 $881 Adj. EBIT* $208 $203 $122 $35 $78 % of sales* 10.1% 5.2% 3.5% 3.4% 8.9% Adj. EBITDA* $249 $259 $188 $52 $94 % of sales* 12.1% 6.6% 5.4% 5.0% 10.7% Capital Expenditures $28 $36 $
Slide 12: Consumer Products Financials
CONSUMER PRODUCTS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2023 – Q1 FY2024 – Q1 Sales $524 $636 $686 $189 $149 Adj. EBIT* $75 $94 $78 $21 $9 % of sales* 14.3% 14.8% 11.4% 11.1% 6.0% Adj. EBITDA* $87 $107 $94 $25 $13 % of sales* 16.7% 16.8% 13.7% 13.1% 8.6% Capital Expenditures $13 $13 $14 $2 $4
Slide 13: Building Products Financials
BUILDING PRODUCTS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2023 – Q1 FY2024 – Q1 Sales $402 $542 $586 $150 $134 Adj. EBIT* $118 $217 $205 $53 $54 % of sales* 29.3% 40.0% 34.9% 35.1% 40.3% Adj. EBITDA* $133 $233 $222 $57 $59 % of sales* 33.2% 43.0% 38.0% 37.9% 44.1% Capital Expenditures $23 $31 $
Slide 14: Sustainable Energy Solutions Financials
SUSTAINABLE ENERGY SOLUTIONS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2023 – Q1 FY2024 – Q1 Sales $135 $131 $146 $31 $29 Adj. EBIT* $5 ($6) $1 ($1) ($5) % of sales* 3.7% -4.8% 0.6% -4.5% -16.5% Adj. EBITDA* $12 $0 $7 $0 ($3) % of sales* 8.6% 0.2% 5.0% 0.3% -10.2% Capital Expenditures $9 $6 $6 $1
Slide 15: Consolidated Adjusted EBITDA / Free Cash Flow
SUPPLEMENTAL DATACONSOLIDATED ADJUSTED EBITDA / FREE CASH FLOW FY 21 FY 22 FY 23 FY 23 FY 24 Annual Annual Annual Q1 Q1 Net Income $ 723.8 $ 379.4 $ 256.5 $ 64.1 $ 96.1 Interest Expense 30.3 31.3 26.8 8.6 3.1 Taxes 176.3 115.0 76.2 19.5 28.8 EBIT $ 930.4 $ 525.7 $ 359.5 $ 92.2 $ 128.0 Restructuring
Slide 16: Reconciliation of Adjusted EPS Q1 (FY2024)
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS Q1 (FY2024) $ Millions (except EPS) Three Months Ended August 31, 2023 Net Earnings Attributable to Operating Earnings Before Income Tax Controlling Earnings per Income Income Taxes Expense (Benefit) Interest (1) Diluted Share GAAP $ 77.7 $ 128.5 $ 28
Slide 17: Reconciliation of Adjusted EPS Q1 (FY2023)
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS Q1 (FY2023) $ Millions (except EPS) Three Months Ended August 31, 2022 Net Earnings Attributable to Operating Earnings Before Income Tax Controlling Earnings per Income Income Taxes Expense (Benefit) Interest (1) Diluted Share GAAP $ 66.7 $ 84.7 $ 19.
Slide 18: Reconciliation of Adjusted EPS (FY2023/FY2022)
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS (FY2023/FY2022) Fiscal Year Ended May 31, 2023 Net Earnings $ Millions (except EPS) Attributable to Operating Earnings Before Income Tax Expense Controlling Earnings per Income Income Taxes (Benefit) Interest(1) Diluted Share GAAP $ 212.4 $ 345.4 $ 76
Slide 19: Reconciliation of Adjusted EPS (FY2021)
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS (FY2021) $ Millions (except EPS) Fiscal Year Ended May 31, 2021 Net Earnings Income Tax Attributable to Operating Earnings Before Expense Controlling Earnings per Income Income Taxes (Benefit) Interest(1) Diluted Share GAAP $ 167,473 $ 917,717 $ 176,2
Slide 20: Reconciliation of Adjusted EBIT & EBITDA – FY2024 Q1
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2024 Q1 $ Millions (except volume) Three Months Ended August 31, 2023 Steel Consumer Building Sustainable Processing Products Products Energy Solutions Other Consolidated Volume (tons/units) 999,658 17,068,945 2,771,458 106,306 n/a n/a N
Slide 21: Reconciliation of Adjusted EBIT & EBITDA – FY2023 Q1
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2023 Q1 $ Millions (except volume) Three Months Ended August 31, 2022 $ Millions (except volume) Three Months Ended August 31, 2022 Sustainable Steel Consumer Building Energy Sustainable Processing Products Products Solutions Other Conso
Slide 22: Reconciliation of Adjusted EBIT & EBITDA – FY2023
SUPPLEMENTAL DATARECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2023 Fiscal Year Ended May 31, 2023 $ Millions (except volume) Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 3,842,828 78,234,587 10,532,434 573,853 n/a n/a Net Sa
Slide 23: Reconciliation of Adjusted EBIT & EBITDA – FY2022
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2022 $ Millions (except volume) Fiscal Year Ended May 31, 2022 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,170,931 82,393,013 11,707,258 610,811 n/a n/a Net S
Slide 24: Reconciliation of Adjusted EBIT & EBITDA – FY2021
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2021 Fiscal Year Ended May 31, 2021 $ Millions (except volume) Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,066,773 74,656,594 11,181,873 897,261 33,419 n/a Sa
Slide 25: Notes to Investors
NOTES TO INVESTORS FORWARD LOOKING STATEMENTS. Worthington Industries, Inc. (the “Company” or “Worthington”) 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 the intended separat
Slide 26: Notes to Investors
NOTES TO INVESTORS changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia’s invasion of Ukraine), foreign currency exc
Slide 27: Contact
CONTACT 614.840.4663 Marcus.Rogier@WorthingtonIndustries.com 2 7
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