Fourth Quarter EPS up 82%
COLUMBUS, Ohio, Jun 19, 2002 /PRNewswire-FirstCall via COMTEX/ --Worthington
Industries, Inc. (NYSE: WOR) today reported results for the three and twelve
month periods ended May 31, 2002.
Sales for the fourth quarter were $519.3 million, an increase of 11% from $465.8
million last year, and for the year were $1,745.0 million, a decrease of 4% from
$1,826.1 million last year.
Fourth quarter earnings were $26.8 million and earnings per diluted share were
$0.31 compared to earnings of $14.4 million, or $0.17 per diluted share, for the
same period last year. The increase in earnings and diluted earnings per share
was 85% and 82%, respectively, for the comparable fourth quarters.
Full year fiscal 2002 results include the pre-tax impact of a $64.6 million
plant consolidation restructuring charge and a $21.2 million reserve for the
impairment of certain assets. Full year fiscal 2001 results include the pre-tax
impact of a $6.5 million restructuring charge for the partial closure of the
Malvern, Pennsylvania, steel processing facility. Including these one-time
charges, earnings for the fiscal year 2002 were $6.5 million and earnings per
diluted share were $0.08 compared to fiscal 2001 earnings of $35.6 million, or
$0.42 per diluted share. Excluding these charges, earnings for fiscal 2002 were
$61.0 million compared to $39.7 million for fiscal 2001, an increase of 54%.
"Fourth quarter is normally a seasonally strong quarter for Worthington," said
John P. McConnell, Chairman and CEO. "This quarter's results were especially
encouraging. Operating income was up significantly in all three of our primary
business segments. Increased automotive demand in processed steel, stronger
pricing in metal framing and record demand for propane cylinders, propelled by
the mandated new overfill protection device, all contributed to a successful
conclusion to fiscal 2002.
"During the course of a difficult and challenging year, we performed well,
repaid debt, returned cash to our shareholders through the payment of a regular
dividend and provided for future growth. We are optimistic that the improving
economy, realization of the benefits of our consolidation plan and growth in
Dietrich Metal Framing will add up to an improved fiscal 2003," concluded
McConnell.
The fourth quarter marked the first time in eight quarters that total revenues
exceeded the prior comparable period. Although top line strength was most
evident in the Processed Steel Products and Pressure Cylinders business
segments, all business segments reported increased volumes.
Within the Processed Steel Products business segment, net sales increased 12% or
$34.8 million to $328.8 million from $294.0 million in the comparable quarter of
fiscal 2001. Direct and tolling volumes were up over the prior year offsetting a
decline in the spread between selling prices and material costs.
Within the Metal Framing business segment, net sales decreased 2% or $1.5
million to $82.2 million from $83.7 million in the comparable quarter of fiscal
2001. Revenues declined modestly as the commercial construction market remained
slow. However, price increases implemented March 15 and April 15 have begun to
restore margins and profitability to their prior levels.
Within the Pressure Cylinders business segment, net sales increased 21% or $17.9
million to $104.5 million from $86.6 million in the comparable quarter of fiscal
2001. The increase is due to significantly greater demand for propane cylinders
as a result of certain regulatory requirements mandating that all propane
cylinders have overfill protection devices. Inventory built in prior quarters in
anticipation of this change peaked at $20 million and has been completely
depleted.
Operating income of $42.1 million was generated in the fourth quarter, an 80%
improvement over the same quarter last year.
Worthington Industries, Inc. is a leading diversified metal processing company
with annual sales of approximately $2 billion. The Columbus, Ohio, based company
is North America's premier value-added steel processor and a leader in
manufactured metal products such as automotive aftermarket stampings, pressure
cylinders, metal framing, metal ceiling grid systems and laser welded blanks.
The company employs 7,500 people and operates 59 facilities in 10 countries.
Founded in 1955, the company operates under a long-standing corporate philosophy
rooted in the golden rule, with earning money for its shareholders as the first
corporate goal. This philosophy, an unwavering commitment to the customer, and
one of the strongest employee/employer partnerships in American industry serve
as the company's foundation. Worthington Industries is listed as one of the 100
Best Companies to Work For in America by Fortune magazine.
Safe Harbor Statement
The company 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 future sales and operating results; projected capacity
levels; anticipated capital expenditures; projected timing, results, costs,
charges and expenditures related to plant closures and consolidations; and other
non-historical information constitute "forward- looking statements" within the
meaning of the Act. Because they are based on beliefs, estimates and
assumptions, forward-looking statements are inherently subject to risks and
uncertainties that could cause actual results to differ materially from those
projected. Any number of factors could affect actual results, including, without
limitation, product demand, changes in product mix and market acceptance of
products; changes in pricing or availability of raw materials, particularly
steel; effects of plant closures and the consolidation of operations; capacity
restraints and efficiencies; conditions in major product markets; delays in
construction or equipment supply; financial difficulties of customers, suppliers
and others with whom we do business; the effect of national, regional and
worldwide economic conditions; risks associated with doing business
internationally, including economical, political and social instability, and
foreign currency exposure; acts of war and terrorist activities; the ability to
improve processes and business practices to keep pace with the economic,
competitive and technological environment; the business environment and impact
of governmental regulations, both in the United States and abroad; and other
risks described from time to time in filings with the SEC.
WORTHINGTON INDUSTRIES, INC.
EARNINGS HIGHLIGHTS
(In Thousands, Except Per Share)
Three Months Ended Twelve Months Ended
May 31, May 31,
2002 2001 2002 2001
(Unaudited)(Unaudited)(Unaudited) (Audited)
Net Sales:
Processed Steel Products $328,751 $294,016 $1,132,697 $1,184,918
Metal Framing 82,242 83,691 305,994 345,996
Pressure Cylinders 104,454 86,578 292,829 289,076
Other 3,837 1,505 13,441 6,110
Total Net Sales 519,284 465,790 1,744,961 1,826,100
Cost of Goods Sold 426,652 394,950 1,480,184 1,581,178
Gross Margin 92,632 70,840 264,777 244,922
Selling, General &
Administrative Expense 50,518 47,382 165,885 173,264
Restructuring Expense -- -- 64,575 6,474
Operating Income:
Processed Steel Products 26,929 15,147 65,736 35,775
Metal Framing 9,819 3,603 20,049 23,747
Pressure Cylinders 12,466 7,859 21,686 19,264
Other (7,100) (3,151) (8,579) (7,128)
Restructuring Expense -- -- (64,575) (6,474)
Total Operating Income 42,114 23,458 34,317 65,184
Other Income (Expense):
Miscellaneous Expense (1,979) (228) (3,224) (928)
Nonrecurring Loss -- -- (21,223) --
Interest Expense (5,740) (7,242) (22,740) (33,449)
Equity in Net Income of
Unconsolidated
Affiliates 7,745 6,736 23,110 25,201
Earnings Before Taxes 42,140 22,724 10,240 56,008
Income Tax Expense 15,381 8,294 3,738 20,443
Net Earnings $26,759 $14,430 $6,502 $35,565
Average Common Shares
Outstanding - Diluted 86,155 85,508 85,929 85,623
Earnings Per Share -
Diluted $0.31 $0.17 $0.08 $0.42
Common Shares Outstanding at
End of Period 85,512 85,375 85,512 85,375
Net Earnings Excluding Restructuring Expense and Nonrecurring Loss
Reported Net Earnings $26,759 $14,430 $6,502 $35,565
Add back:
Restructuring Expense, net
of tax -- -- 41,005 4,111
Nonrecurring Loss, net of
tax -- -- 13,477 --
Net Earnings Excluding
Restructuring
Expense and Nonrecurring
Loss $26,759 $14,430 $60,984 $39,676
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
May 31, May 31,
2002 2001
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents $496 $194
Accounts receivable, net 197,240 169,330
Inventories 219,950 227,506
Other current assets 72,654 52,689
Total Current Assets 490,340 449,719
Investments in Unconsolidated
Affiliates 91,759 58,638
Goodwill 75,400 76,439
Other Assets 33,219 54,317
Property, Plant and Equipment, net 766,596 836,749
Total Assets $1,457,314 $1,475,862
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $233,181 $207,568
Notes payable 5,281 13,794
Current maturities of long-term
debt 1,082 1,748
Other current liabilities 99,807 83,509
Total Current Liabilities 339,351 306,619
Other Liabilities 73,731 69,396
Long-Term Debt 289,250 309,208
Deferred Income Taxes 148,726 140,974
Shareholders' Equity 606,256 649,665
Total Liabilities and
Shareholders' Equity $1,457,314 $1,475,862
WORTHINGTON INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
Twelve Months Ended
May 31,
2002 2001
(Unaudited) (Audited)
Operating Activities
Net earnings $6,502 $35,565
Adjustments to reconcile net
earnings to net cash provided by
operating activities:
Depreciation and amortization 68,887 70,582
Restructuring expense 64,575 6,474
Nonrecurring loss 21,223 --
Other adjustments (19,634) (6,668)
Changes in current assets and
liabilities (6,296) 215,501
Net Cash Provided By Operating
Activities 135,257 321,454
Investing Activities
Investment in property, plant and
equipment, net (39,100) (62,900)
Acquisitions, net of cash acquired -- (2,043)
Investment in equity affiliates (21,000) --
Proceeds from sale of assets 10,459 1,030
Net Cash Used By Investing
Activities (49,641) (63,913)
Financing Activities
Payments on short-term borrowings (8,513) (146,401)
Proceeds from long-term debt -- 2,064
Principal payments on long-term
debt (20,872) (50,643)
Repurchase of common shares -- (3,406)
Dividends paid (54,655) (54,822)
Other (1,274) (4,677)
Net Cash Used By Financing
Activities (85,314) (257,885)
Increase (decrease) in cash and cash
equivalents 302 (344)
Cash and cash equivalents at
beginning of period 194 538
Cash and cash equivalents at end of
period $496 $194
CONTACT:
Cathy Mayne Lyttle, VP, Corporate Communications,
+1-614-438-3077, or cmlyttle@WorthingtonIndustries.com , or Allison McFerren
Sanders, Director, Investor Relations, +1-614-840-3133, or
asanders@WorthingtonIndustries.com,
both of Worthington Industries, Inc.
URL: http://www.worthingtonindustries.com
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