Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Q4 2024 Earnings Presentation
24 slides from Worthington Enterprises's earnings presentation, Jun 26, 2024
Slide 1: IR Overview: Q4 FY2024
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx IR OVERVIEW: Q4 FY2024 JUNE 25, 2024
Slide 2: Notes to Investors
Notes to Investors FORWARD-LOOKING STATEMENTS. Selected statements in this presentation constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). Worthington Enterprises, Inc. (the “Company” or “Worthington”) wishes to take adv
Slide 3: Q4 FY2024 / Recent Highlights
Q4 FY2024 / Recent Highlights Consolidated net sales of $319 million with Adj. EBITDA from continuing operations of $63 million or 19.8% in Q4 Building Products Adj. EBITDA of $52 million and Adj. EBITDA margin of 33.6% in Q4 Building Products completed the acquisition of Hexagon Ragasco, a global m
Slide 4: Q4 FY2024 Highlights – Financial Summary
Q4 FY2024 Highlights – Financial Summary $ Millions except EPS Q4 Q4 Worthington Enterprises Consolidated FY 2024 FY 2023 Net Sales $319 $369 Adj. EBITDA $63 $94 % Margin 19.8% 25.4% Adj. EPS $0.74 $1.19 Building Products Segment Net Sales $154 $175 Adj. EBITDA $52 $65 % Margin 33.6% 37.1% Consumer
Slide 5: Q4 FY2024 – Unique Items Impact to Earnings
Q4 FY2024 – Unique Items Impact to Earnings Q4 FY2024 Q4 FY2023 Worthington Enterprises Consolidated $ Millions Diluted $ Millions Diluted after tax EPS after tax EPS Net Earnings (Loss) – Continuing Operations (GAAP) ($32) ($0.64) $50 $1.01 Corporate costs eliminated at Separation (1) - - $8 $0.16
Slide 6: Worthington Enterprises
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx WORTHINGTON ENTERPRISES A market-leading designer and manufacturer of innovative Building Products and Consumer Products that help enable people
Slide 7: Building Products At-a-Glance
Building Products At-a-Glance KEY FIGURES Heating and Cooking (FY24) $619M 34% $210M Facilitating the transition away from fuel oil, as well as providing back-up power solutions. Water NE T S AL E S AD J . E B I TD A M AR GI N AD J . E B I TD A Key component in providing safe and clean drinking wate
Slide 8: Consumer Products At-a-Glance
Consumer Products At-a-Glance KEY FIGURES Tools Outdoor Living (FY24) Hand-held torches, micro torches, lighters, accessories and fuel for constructing, fixing, making and Torches, fuel and accessories, including the first in-market digital fuel gauge, for outdoor adventures, $495M 14% $70M NET SALE
Slide 9: Worthington Enterprises - A Compelling Financial Profile
Worthington Enterprises - A Compelling Financial Profile Adj. EBITDA Net Sales Adj. EBITDA1 Margin $1,246M $251M 20% Net Working Fixed Assets Net Debt Capital2 $273M $227M $54M Note: Figures as of FY2024 ending 05/31/24. 1 Refer to appendix for reconciliation of Adjusted EBITDA from continuing opera
Slide 10: With Solid Historical Financial Results
With Solid Historical Financial Results Net Sales ($M) Adjusted EBITDA1 ($M) $319 $302 $1,418 $1,309 $1,246 $251 $1,112 $205 FY2021 FY2022 FY2023 FY2024 FY2021 FY2022 FY2023 FY2024 1 Refer to appendix for reconciliation of Adjusted EBITDA from continuing operations to the comparable GAAP measure. No
Slide 11: Established Portfolio of Market-Leading Brands…
Established Portfolio of Market-Leading Brands… 80%+ of Adjusted EBITDA comes from brands and products with leading market positions Ceiling Metal Hand Torch Camping Portable Vertical Well Water Suspension Framing And Fuels Fuel Helium Tanks Residential Tanks Systems Heating Tanks Note: FY2024 perio
Slide 12: …With High Barriers-to-Entry and Returns
High Margin, Asset-Light Business Model, Generating Strong Cash Flow …With High Barriers-to-Entry and Returns Highly Engineered Solutions – Meeting Rigorous Specifications in Highly Regulated Markets Reliability, Speed & Product Quality – Exceptional Quality, Service, and Supply Chain Solutions Robu
Slide 13: Our Products Serve Markets Positioned to Capitalize on Strong Secular Trends
Our Products Serve Markets that are Well Positioned to Capitalize on Strong Secular Trends GOVERNMENT STIMULUS ENVIRONMENTAL RE-SHORING AND AND SUPPORT POPULATION SHIFT INVESTMENT NEAR SHORING Ceiling Metal HVAC H2 & CNG Propane Refillable Lawn & BBQ / Foam & Industrial Metal HVAC Tools Systems Solu
Slide 14: Worthington Business System Accelerates Our Growth and Profitability
Worthington Business System Accelerates Our Growth and Profitability Our deeply-held Philosophy is rooted in the Golden Rule – we treat our customers, employees, investors, and suppliers as we would like to be treated • Through continuous transformation we drive higher margins within Manufacturing,
Slide 15: Innovation for Highly Engineered Products Drives Incremental Sales and Margin
Innovation for Highly Engineered Products Drives Incremental Sales and Margin 01 02 03 BUILDING EXPANDING DISRUPTING THE CORE THE CORE THE CORE Improving existing Transformational Strength in channel products with a innovations driving management to drive leading brand sustainable value margin expan
Slide 16: Guided by Our Philosophy
Guided by Our Philosophy A People-First, Performance-Based Culture Culture of Health & Positive Diversity & Profit-Sharing Engagement Safety Impact Inclusion Incentives Strong sense of Putting our people Partnering with Valuing diversity of Committed to best- belonging and first and ensuring the org
Slide 17: Low Leverage and Ample Liquidity Provides Financial Flexibility
Low Leverage and Ample Liquidity Provides Financial Flexibility Strong Leverage1: 1.2x Balance Sheet Total Debt / TTM Adj. EBITDA Commitment to Maintaining Financial Investment Grade Rating Flexibility Ample Liquidity2: $744M Disciplined Focused on growth and Capital rewarding shareholders Allocatio
Slide 18: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities • Brand, Innovation, and Channel investments ORGANIC GROWTH • Investments in automation and R&D initiatives • High-returning Capex investments • Build out core businesses and selectively grow into new markets TARGETED M&A • Create value via channel and supply
Slide 19: Worthington Enterprises Key Investment Highlights
Worthington Enterprises FOUNDED IN KEY INVESTMENT HIGHLIGHTS 1955 • Established Portfolio of Market-Leading Brands with NET SALES OF High Barriers to Entry $1.2 BILLION1 • Strong Underlying Secular Trends Enabling Steady Long-Term Growth Adj. EBITDA of $251 million2 • Business Model Drives High Free
Slide 20: Appendix
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Appendix
Slide 21: Worthington Enterprises Reconciliation of Non-GAAP Measures
Worthington Enterprises Reconciliation of Non-GAAP Measures (in millions) Fiscal Year Ended May 31 FY 2023 FY2024 FY 2021 FY 2022 FY 2023 FY 2024 Q4 Q4 Earnings (loss) before income taxes (GAAP) $ 693.4 $ 210.6 $ 160.3 $ 74.0 $ 64.0 $ (26.8) Less: net loss attributable to noncontrolling interest - -
Slide 22: Worthington Enterprises Reconciliation of Non-GAAP Measures
Worthington Enterprises Reconciliation of Non-GAAP Measures (in millions) Non-GAAP Footnotes (1) Reflects reductions in certain corporate overhead costs that no longer exist post-Separation. These costs were included in continuing operations as they represent general corporate overhead that was hist
Slide 23: Use of Non-GAAP Measures and Definitions
Use of Non-GAAP Measures and Definitions Effective December 1, 2023, the Company shifted management responsibilities for a propane tank manufacturing facility that was previously reported within the Consumer Products segment to the Building Products segment. Segment financial data included in these
Slide 24: Use of Pro Forma Financial Information
Use of Pro Forma Financial Information PRO FORMA FINANCIAL INFORMATION. These materials include certain financial data and operating metrics that are presented on a pro forma basis to illustrate the estimated effects of the Separation of Worthington Steel from the historical combined company, which
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