Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Q3 2023 Earnings Presentation
26 slides from Worthington Enterprises's earnings presentation, Mar 23, 2023
Slide 1: Q3 FY2023 Results / Business Update
Q3 FY2023 Results / Business Update
Slide 2: Vision
VISION TO BE THE TRANSFORMATIVE PARTNER FOR OUR CUSTOMERS, A POSITIVE FORCE IN OUR COMMUNITIES AND EARN EXCEPTIONAL RETURNS 2
Slide 3: Corporate Citizenship & Sustainability
CORPORATE CITIZENSHIP & SUSTAINABILITY Long history of keeping employees safe, practicing good citizenship and protecting the environment FY2022 HIGHLIGHTS AWARDS & RECOGNITIONS Top-ranked company on IBD’s 100 Best ESG companies for 2022 Newsweek America’s Most Responsible Companies for 2023 For mor
Slide 4: $5.2B of Sales in Trailing Twelve Months
$5.2B OF SALES IN TRAILING TWELVE MONTHS 2/28/23 NET SALES BY END-MARKETS ADJ. EBIT BY SEGMENT TTM* $329.9 MILLION 12% 7% 13% 5% 4% $81.8 10% 5% $209.0 8% $42.0 36% $0.5 Automotive Construction ($3.4) Consumer Products Building Products Steel Consumer Products Machinery & Equipment Agriculture Build
Slide 5: $1.1B of Sales in Q3 of Fiscal 2023
$1.1B OF SALES IN Q3 OF FISCAL 2023 2/28/23 NET SALES BY END-MARKETS ADJ. EBIT BY SEGMENT* $71.3 MILLION 14% 15% 7% 4% 3% $17.9 8% $51.5 4% 8% $7.8 37% $(4.4) Automotive Construction $(1.4) Consumer Products Building Products Steel Consumer Products Building Products Sustainable Energy Solutions Mac
Slide 6: 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 6
Slide 7: 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 $500 $ Millions 400 300 $175 200 $244 100 $200 $150 0 $32 $32
Slide 8: 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 OVER $2.5 BILLION OF CAPITAL DEPLOYED IN PAST 5 YEARS SINCE START OF FY2018 ✓ Reinvest in the business to create value and sup
Slide 9: Consolidated Results
CONSOLIDATED RESULTS $ millions, except EPS FY2020 FY2021 FY2022 FY2022 – Q3 FY2023 – Q3 Sales $3,059 $3,171 $5,242 $1,378 $1,103 Adjusted EBIT* $208 $396 $517 $85 $71 % of sales* 6.8% 12.5% 9.9% 6.1% 6.5% Adjusted EBITDA* $300 $483 $615 $112 $99 % of sales* 9.8% 15.2% 11.7% 8.1% 9.0% EPS* $2.39 $5.
Slide 10: Update on Separation into Two Market-Leading, Independent Public Companies
UPDATE ON SEPARATION INTO TWO MARKET-LEADING, INDEPENDENT PUBLIC COMPANIES 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 & Approva
Slide 11: Supplemental Data
4 WORTHINGTON INDUSTRIES SUPPLEMENTAL DATA
Slide 12: Steel Processing Financials
STEEL PROCESSING FINANCIALS $ millions FY2020 FY2021 FY2022 FY2022 – Q3 FY2023 – Q3 Sales $1,860 $2,059 $3,933 $1,053 $757 Adj. EBIT* $40 $208 $203 $7 $8 % of sales* 2.1% 10.1% 5.2% 0.7% 1.0% Adj. EBITDA* $81 $249 $259 $24 $24 % of sales* 4.3% 12.1% 6.6% 2.3% 3.2% Capital Expenditures $41 $28 $36 $9
Slide 13: Consumer Products Financials
CONSUMER PRODUCTS FINANCIALS $ millions FY2020 FY2021 FY2022 FY2022 – Q3 FY2023 – Q3 Sales $449 $524 $636 $162 $163 Adj. EBIT* $65 $75 $94 $27 $18 % of sales* 14.6% 14.3% 14.8% 16.5% 11.0% Adj. EBITDA* $76 $87 $107 $30 $22 % of sales* 16.9% 16.7% 16.8% 18.4% 13.6% Capital Expenditures $8 $13 $13 $4
Slide 14: Building Products Financials
BUILDING PRODUCTS FINANCIALS $ millions FY2020 FY2021 FY2022 FY2022 – Q3 FY2023 – Q3 Sales $383 $402 $542 $133 $152 Adj. EBIT* $105 $118 $217 $50 $51 % of sales* 27.3% 29.3% 40.0% 37.3% 33.9% Adj. EBITDA* $122 $133 $233 $54 $56 % of sales* 31.8% 33.2% 43.0% 40.4% 36.9% Capital Expenditures $18 $23 $
Slide 15: Sustainable Energy Solutions Financials
SUSTAINABLE ENERGY SOLUTIONS FINANCIALS $ millions FY2020 FY2021 FY2022 FY2022 – Q3 FY2023 – Q3 Sales $122 $135 $131 $31 $32 Adj. EBIT* $5 $5 ($6) ($3) ($1) % of sales* 4.1% 3.7% -4.8% -9.0% -4.5% Adj. EBITDA* $11 $12 $0 ($1) $0 % of sales* 8.7% 8.6% 0.2% -3.6% 0.7% Capital Expenditures $14 $9 $6 $2
Slide 16: Consolidated Adjusted EBITDA / Free Cash Flow
SUPPLEMENTAL DATA CONSOLIDATED ADJUSTED EBITDA / FREE CASH FLOW FY 21 FY 22 FY 22 FY 23 Annual Annual Q3 Q3 Net Income $ 723.8 $ 379.4 $ 56.3 $ 46.3 Interest Expense 30.3 31.3 8.1 6.0 Taxes 176.3 115.0 18.7 12.1 EBIT $ 930.4 $ 525.7 $ 83.2 $ 64.4 Restructuring and non recurring (534.6) (9.2) 1.4 6.9
Slide 17: Reconciliation of Adjusted EPS Q3
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS Q3 (FY2023/FY2022) Three Months Ended February 28, 2023 Net Earnings Attributable to Operating Earnings Before Income Tax Controlling Earnings per Income Income Taxes Expense (Benefit) Interest(1) Diluted Share GAAP $ 30.1 $ 62.3 $ 12.1 $ 46.3 $ 0.94
Slide 18: Reconciliation of Adjusted EPS (FY2022/FY2021/FY2020)
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS (FY2022/FY2021/FY2020) Fiscal 2022 Income Tax Net Earnings Operating Earnings Before Expense Attributable to Earnings per (In millions, except per share data) Income Income Taxes (Benefit) Controlling Interest (1) Diluted Share GAAP $ 329.3 $ 514.3 $
Slide 19: Reconciliation of Adjusted EBIT & EBITDA – FY2023 Q3
SUPPLEMENTAL DATARECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2023 Q3 Three Months Ended February 28, 2023 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 917,670 19,158,164 2,494,881 122,139 n/a n/a Net sales $ 757.0 $ 162.6 $
Slide 20: Reconciliation of Adjusted EBIT & EBITDA – FY2022 Q3
SUPPLEMENTAL DATARECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2022 Q3 Three Months Ended February 28, 2022 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 998,590 20,297,372 2,786,560 144,108 n/a n/a Net sales $ 1,052.6 $ 161.7
Slide 21: Reconciliation of Adjusted EBIT & EBITDA – FY2022
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2022 $ Millions (except volume) Fiscal Year Ended May 31, 2022 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,170,931 82,393,013 11,707,258 610,811 - n/a Sales $
Slide 22: Reconciliation of Adjusted EBIT & EBITDA – FY2021
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2021 $ Millions (except volume) Fiscal Year Ended May 31, 2021 Sustainable Steel Consumer Building 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 23: Reconciliation of Adjusted EBIT & EBITDA – FY2020
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2020 $ Millions (except volume) Fiscal Year ended May 31, 2020 Sustainable Steel Consumer Building Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 3,830,675 70,710,740 10,896,035 846,431 n/m n/a Net s
Slide 24: 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 25: 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 26: Contact
CONTACT 614.840.4663 Marcus.Rogier@WorthingtonIndustries.com 2 6
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