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Worthington
🇺🇸 NYSE:WOR
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May 31, 2020

Worthington Q4 2020 Earnings Report

Worthington Industries reported earnings of $0.29 per share, with net sales decreasing 35% from the prior year quarter. The company faced significant uncertainty related to the coronavirus and associated shutdowns, impacting demand and results.

Key Takeaways

Worthington Industries reported Q4 earnings of $0.29 per share, a decrease from $0.66 in the prior year quarter. Net sales were $612 million, down 35% year-over-year, primarily due to lower volumes in Steel Processing and a shift in mix in Cylinders. The company experienced lower demand in key end markets due to COVID-19 but saw sequential improvement through the quarter, with May showing signs of recovery.

Q4 earnings were $0.29 per share, compared to $0.66 in the prior year quarter.

Net sales decreased 35% year-over-year to $612 million, driven by lower volumes in Steel Processing and a shift in mix in Cylinders.

Gross profit declined to $90 million from $126 million in the prior year, but gross margin increased to 14.7% from 13.4%.

Adjusted EBITDA was $67 million, compared to $89 million in the prior year, with positive EBITDA generated in each month of Q4.

Total Revenue
$612M
Previous year: $939M
-34.9%
EPS
$0.49
Previous year: $0.77
-36.4%
Gross Profit
$90M
Previous year: $126M
-28.6%
Cash and Equivalents
$147M
Previous year: $92.4M
+59.2%
Free Cash Flow
$57.1M
Previous year: $46.7M
+22.3%
Total Assets
$2.33B
Previous year: $2.51B
-7.1%

Worthington

Worthington

Worthington Revenue by Segment

Forward Guidance

Assuming the economy continues to open back up here and abroad, Worthington expects to see improvements in our businesses, particularly those that were hardest hit last quarter.

Positive Outlook

  • Business conditions are improved.
  • Positive developments around our investment in Nikola.
  • Most of our businesses operated under the essential business rules
  • Begin the year with a strong balance sheet, low interest expense and significant cash and revolver availability.
  • Expect to see improvements in our businesses, particularly those that were hardest hit last quarter.

Challenges Ahead

  • There were restructuring and impairment charges of $15.7 million, or $0.20 per share, in Q4
  • Consolidated net sales of $612 million decreased 35% from the prior year quarter
  • Gross profit declined in the quarter by $36 million from Q4 last year to $90 million
  • The decrease was across the board, as our JV’s primarily serve the construction and automotive end markets.
  • Economic outlook still unclear, we will remain guarded in our approach until there is evidence of a broad-based recovery.

Company Overview

Full financial data and analysis

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