COLUMBUS, Ohio–(BUSINESS WIRE)–Worthington Steel, Inc. (NYSE: WS) today reported financial results for the fiscal 2024 third quarter ended February 29, 2024.
The Company reported net sales of $805.8 million and net earnings attributable to controlling interest of $49.0 million, or $0.98 per diluted share, for its fiscal 2024 third quarter. For the third quarter of fiscal 2023 ended February 28, 2023, the Company recorded net sales of $780.7 million and net earnings attributable to controlling interest of $5.4 million, or $0.11 per diluted share. Results in both the current year quarter and prior year quarter were impacted by certain items, as summarized in the table below and as further discussed in the Non-GAAP Financial Measures / Supplemental Data section later in this release.
|
(U.S. dollars in millions, except per share amounts) |
||||||||||||||||
|
|
|
3Q 2024 |
|
3Q 2023 |
||||||||||||
|
|
|
After-Tax |
|
Per Share |
|
After-Tax |
|
Per Share |
||||||||
|
Net earnings attributable to controlling interest |
|
$ |
49.0 |
|
|
$ |
0.98 |
|
|
$ |
5.4 |
|
|
$ |
0.11 |
|
|
Separation costs |
|
|
0.6 |
|
|
|
0.01 |
|
|
|
3.2 |
|
|
|
0.06 |
|
|
Adjusted net earnings attributable to controlling interest (Non-GAAP) |
|
$ |
49.6 |
|
|
$ |
0.99 |
|
|
$ |
8.6 |
|
|
$ |
0.17 |
|
Financial highlights for the current and comparative periods are as follows:
|
(U.S. dollars in millions, except per share amounts) |
||||||||||||||||
|
|
|
3Q 2024 |
|
3Q 2023 |
|
9M 2024 |
|
9M 2023 |
||||||||
|
Net sales |
|
$ |
805.8 |
|
|
$ |
780.7 |
|
|
$ |
2,519.6 |
|
|
$ |
2,723.7 |
|
|
Operating income |
|
|
66.3 |
|
|
|
9.5 |
|
|
|
127.2 |
|
|
|
30.5 |
|
|
Equity in net income of unconsolidated affiliate |
|
|
2.9 |
|
|
|
(0.2 |
) |
|
|
15.7 |
|
|
|
3.5 |
|
|
Net earnings attributable to controlling interest |
|
|
49.0 |
|
|
|
5.4 |
|
|
|
101.5 |
|
|
|
19.8 |
|
|
Earnings per diluted share attributable to controlling interest |
|
$ |
0.98 |
|
|
$ |
0.11 |
|
|
$ |
2.05 |
|
|
$ |
0.40 |
|
“The Worthington Steel team delivered a strong third quarter and I want to thank and congratulate our employees on their great performance in our first quarter as a standalone company,” said Geoff Gilmore, president and chief executive officer of Worthington Steel. “We saw improvements in sales, operating income and net income over the same quarter in 2023, and our teams are laser-focused on finishing the fiscal year strong.”
Consolidated Quarterly Results
Net sales for the third quarter of fiscal 2024 were $805.8 million, an increase of $25.1 million, or 3%, compared to the prior year quarter. The increase was driven primarily by a 1% increase in direct selling prices and an 11% increase in toll selling prices. Additionally, there was a 1% increase in direct tons and a 9% increase in toll tons sold in the current year quarter compared to the prior year quarter. Correspondingly, the mix of direct tons versus toll tons processed was 55% to 45% in the current year quarter, compared to 56% to 44% in the prior year quarter.
Gross margin increased by $56.9 million over the prior year quarter to $120.1 million. The increase was driven primarily by improved direct spreads and higher volume. Direct spreads, up $52.9 million, benefited from a $45.9 million favorable change from an estimated $26.6 million inventory holding loss in the prior year quarter to an estimated $19.3 million inventory holding gain in the current year quarter.
Operating income improved by $56.8 million over the prior year quarter to $66.3 million, primarily due to the improved gross margin. Operating income incrementally benefited from a $3.0 million decrease in costs associated with the Company’s December 1, 2023, separation from Worthington Enterprises, Inc. (“Separation”) compared to the prior year quarter. These increases were offset by higher selling, general and administrative (“SG&A”) expense, up $3.1 million, primarily due to increased wage and benefit costs resulting from a combination of higher headcount after the Separation as well as continued inflationary pressures.
Recent Developments
- On December 1, 2023, in connection with the Separation of the Company from Worthington Enterprises, Inc. (“Former Parent”), a $150.0 million distribution was paid to the Former Parent.
- On March 13, 2024, Worthington Steel Joint Venture, TWB Company signed a licensing agreement with AcerlorMittal Tailored Blanks for a patented ablation technology that will expand the organization’s capabilities in North America.
- On March 21, 2024, Worthington Steel’s Board of Directors declared a quarterly dividend of $0.16 per share payable on June 28, 2024 to shareholders of record on June 14, 2024.
Outlook
“Our company is performing well,” Gilmore said. “Our team is aligned and focused on creating value for our shareholders and working with our customers to ensure the products the world uses every day are stronger, better performing and more durable. I’m optimistic about our future and confident in our team, our growth plans and our strategy.”
Conference Call
The Company will review fiscal 2024 third quarter results during its quarterly conference call on March 22, 2024, beginning at 8:30 a.m., Eastern Time. Details regarding the conference call are located in the investor section of the Company’s website at www.WorthingtonSteel.com.
About Worthington Steel
Worthington Steel (NYSE:WS) is a metals processor that partners with customers to deliver highly technical and customized solutions. Worthington Steel’s expertise in carbon flat-roll steel processing, electrical steel laminations and tailor welded solutions are driving steel toward a more sustainable future.
As one of the most trusted metals processors in North America, Worthington Steel and its 4,600 employees harness the power of steel to advance our customers’ visions through value-added processing capabilities including galvanizing, pickling, configured blanking, specialty cold reduction, lightweighting and electrical lamination. Headquartered in Columbus, Ohio, Worthington Steel operates 32 facilities in seven states and six countries. Following a people-first Philosophy, commitment to sustainability and proven business system, Worthington Steel’s purpose is to generate positive returns by providing trusted and innovative solutions for customers, creating opportunities for employees, and strengthening its communities.
Safe Harbor Statement
Selected statements contained in this release constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). The Company to take advantage of the safe harbor provisions included in the Act. Forward-looking statements reflect the Company’s current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as “believe,” “anticipate,” “may,” “could,” “should,” “would,” “intend,” “plan,” “will,” “likely,” “expect,” “estimate,” “project,” “position,” “strategy,” “target,” “aim,” “seek,” “foresee” and similar words or phrases. These forward-looking statements include, without limitation, statements relating to: future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; the anticipated benefits of the Company’s separation from Worthington Enterprises, Inc. (the “Separation”); the expected financial and operational performance of, and future opportunities for, the Company following the Separation; the tax treatment of the Separation transaction; the leadership of the Company following the Separation; future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condition or other financial measures; pricing trends for raw materials and finished goods and the impact of pricing changes; the ability to improve or maintain margins; expected demand or demand trends for the Company or its markets; additions to product lines and opportunities to participate in new markets; expected benefits from transformation and innovation efforts; the ability to improve performance and competitive position at the Company’s operations; anticipated working capital needs, capital expenditures and asset sales; anticipated improvements and efficiencies in costs, operations, sales, inventory management, sourcing and the supply chain and the results thereof; projected profitability potential; the ability to make acquisitions and the projected timing, results, benefits, costs, charges and expenditures related to acquisitions, joint ventures, headcount reductions and facility dispositions, shutdowns and consolidations; projected capacity and the alignment of operations with demand; the ability to operate profitably and generate cash in down markets; the ability to capture and maintain market share and to develop or take advantage of future opportunities, customer initiatives, new businesses, new products and new markets; expectations for Company and customer inventories, jobs and orders; expectations for the economy and markets or improvements therein; expectations for generating improving and sustainable earnings, earnings potential, margins or shareholder value; effects of judicial rulings; the ever-changing effects of the novel coronavirus (“COVID-19”) pandemic and the various responses of governmental and nongovernmental authorities thereto on economies and markets, and on our customers, counterparties, employees and third-party service providers; and other non-historical matters.
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, those that follow: our ability to successfully realize the anticipated benefits of the Separation; the effect of conditions in national and worldwide financial markets, including inflation, increases in interest rates and economic recession, and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Company’s products or suppliers, a United States withdrawal from or significant renegotiation of trade agreements, the occurrence of trade wars, the closing of border crossings, and other changes in trade regulations or relationships; changing oil prices and/or supply; product demand and pricing; changes in product mix, product substitution and market acceptance of the Company’s products; volatility or fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities, labor and other items required by operations (especially in light of Russia’s invasion of Ukraine); effects of sourcing and supply chain constraints; the outcome of adverse claims experience with respect to workers’ compensation, product recalls or product liability, casualty events or other matters; effects of facility closures and the consolidation of operations; the effect of financial difficulties, consolidation and other changes within the steel, automotive, construction and other industries in which the Company participates; failure to maintain appropriate levels of inventories; financial difficulties (including bankruptcy filings) of original equipment manufacturers, end-users and customers, suppliers, joint venture partners and others with whom the Company does business; the ability to realize targeted expense reductions from headcount reductions, facility closures and other cost reduction efforts; the ability to realize cost savings and operational, sales and sourcing improvements and efficiencies, and other expected benefits from transformation initiatives, on a timely basis; the overall success of, and the ability to integrate, newly acquired businesses and joint ventures, maintain and develop their customers, and achieve synergies and other expected benefits and cost savings therefrom; capacity levels and efficiencies, within facilities, within major product markets and within the industries in which the Company participates as a whole; the effect of disruption in the business of suppliers, customers, facilities and shipping operations due to adverse weather, casualty events, equipment breakdowns, labor shortages, interruption in utility services, civil unrest, international conflicts (especially in light of Russia’s invasion of Ukraine), terrorist activities or other causes; 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 exchange rate exposure and the acceptance of the Company’s products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; the effect of inflation, interest rate increases and economic recession, as well as potential adverse impacts as a result of the Inflation Reduction Act of 2022, which may negatively impact the Company’s operations and financial results; deviation of actual results from estimates and/or assumptions used by the Company in the application of its significant accounting policies; the level of imports and import prices in the Company’s markets; the impact of environmental laws and regulations or the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Company’s ability to use or sell certain products; the impact of increasing environmental, greenhouse gas emission and sustainability regulations and considerations; the impact of judicial rulings and governmental regulations, both in the United States and abroad, including those adopted by the United States Securities and Exchange Commission (“SEC”) and other governmental agencies as contemplated by the Coronavirus Aid, Relief and Economic Security (CARES) Act, the Consolidated Appropriations Act, 2021, the American Rescue Plan Act of 2021, and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, which may increase the Company’s healthcare and other costs and negatively impact the Company’s operations and financial results; the effect of tax laws in the United States and potential changes for such laws, which may increase the Company’s costs and negatively impact its operations and financial results; cyber security risks; the effects of privacy and information security laws and standards; and other risks described from time to time in the Company’s filings with the SEC, including those described in the “Risk Factors” section of the information statement filed as Exhibit 99.1 to the Company’s Amendment No. 3 to its registration statement on Form 10 filed with the SEC on November 14, 2023.
Forward-looking statements should be construed in the light of such risks. The Company notes these factors for investors as contemplated by the Act. It is impossible to predict or identify all potential risk factors. Consequently, you should not consider the foregoing list to be a complete set of all potential risks and uncertainties. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. The Company does not undertake, and hereby disclaims, any obligation to update any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.
|
WORTHINGTON STEEL, INC. CONSOLIDATED AND COMBINED STATEMENTS OF EARNINGS (In millions, except per share amounts) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
February 29, |
|
February 28, |
|
February 29, |
|
February 28, |
||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Net sales |
|
$ |
805.8 |
|
|
$ |
780.7 |
|
|
$ |
2,519.6 |
|
|
$ |
2,723.7 |
|
|
Cost of goods sold |
|
|
685.7 |
|
|
|
717.5 |
|
|
|
2,210.8 |
|
|
|
2,537.4 |
|
|
Gross margin |
|
|
120.1 |
|
|
|
63.2 |
|
|
|
308.8 |
|
|
|
186.3 |
|
|
Selling, general and administrative expense |
|
|
52.8 |
|
|
|
49.7 |
|
|
|
160.7 |
|
|
|
147.7 |
|
|
Impairment of long-lived assets |
|
|
– |
|
|
|
– |
|
|
|
1.4 |
|
|
|
0.3 |
|
|
Restructuring and other income, net |
|
|
– |
|
|
|
– |
|
|
|
– |
|
|
|
(4.2 |
) |
|
Separation costs |
|
|
1.0 |
|
|
|
4.0 |
|
|
|
19.5 |
|
|
|
12.0 |
|
|
Operating income |
|
|
66.3 |
|
|
|
9.5 |
|
|
|
127.2 |
|
|
|
30.5 |
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Miscellaneous income, net |
|
|
0.1 |
|
|
|
1.3 |
|
|
|
1.6 |
|
|
|
2.4 |
|
|
Interest expense, net |
|
|
(2.9 |
) |
|
|
(0.5 |
) |
|
|
(3.6 |
) |
|
|
(2.7 |
) |
|
Equity in net income of unconsolidated affiliate |
|
|
2.9 |
|
|
|
(0.2 |
) |
|
|
15.7 |
|
|
|
3.5 |
|
|
Earnings before income taxes |
|
|
66.4 |
|
|
|
10.1 |
|
|
|
140.9 |
|
|
|
33.7 |
|
|
Income tax expense |
|
|
14.0 |
|
|
|
0.8 |
|
|
|
28.5 |
|
|
|
5.6 |
|
|
Net earnings |
|
|
52.4 |
|
|
|
9.3 |
|
|
|
112.4 |
|
|
|
28.1 |
|
|
Net earnings attributable to noncontrolling interests |
|
|
3.4 |
|
|
|
3.9 |
|
|
|
10.9 |
|
|
|
8.3 |
|
|
Net earnings attributable to controlling interest |
|
$ |
49.0 |
|
|
$ |
5.4 |
|
|
$ |
101.5 |
|
|
$ |
19.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding(1) |
|
|
49.3 |
|
|
|
49.3 |
|
|
|
49.3 |
|
|
|
49.3 |
|
|
Earnings per share attributable to controlling interest |
|
$ |
0.99 |
|
|
$ |
0.11 |
|
|
$ |
2.06 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average common shares outstanding(2) |
|
|
50.3 |
|
|
|
49.3 |
|
|
|
49.6 |
|
|
|
49.3 |
|
|
Earnings per share attributable to controlling interest |
|
$ |
0.98 |
|
|
$ |
0.11 |
|
|
$ |
2.05 |
|
|
$ |
0.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Common shares outstanding at end of period(1) |
|
|
49.3 |
|
|
|
49.3 |
|
|
|
49.3 |
|
|
|
49.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash dividends declared per share |
|
$ |
0.16 |
|
|
n/a |
|
|
$ |
0.16 |
|
|
n/a |
|
||
| ______________________________________ | |
|
(1) |
Prior to the third quarter of fiscal 2024, reported Weighted average common shares outstanding (Basic) and Common shares outstanding at end of period reflects the basic shares at the Separation date. This share amount is being utilized for the calculation of basic earnings per share for periods presented prior to the Separation date. |
|
(2) |
Prior to the third quarter of fiscal 2024, reported Weighted average common shares outstanding (Diluted) reflects the basic shares at the Separation date. This share amount is being utilized for the calculation of diluted earnings per share for periods presented prior to the Separation date. |
|
WORTHINGTON STEEL, INC. CONSOLIDATED AND COMBINED BALANCE SHEETS (In millions, except share amounts) (Unaudited) |
||||||||
|
|
|
February 29, |
|
May 31, |
||||
|
|
|
2024 |
|
2023 |
||||
|
Assets |
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
60.8 |
|
|
$ |
32.7 |
|
|
Receivables, less allowances of $1.8 and $2.6 at February 29, 2024 and May 31, 2023, respectively |
|
|
468.8 |
|
|
|
468.0 |
|
|
Inventories |
|
|
|
|
|
|
||
|
Raw materials |
|
|
157.1 |
|
|
|
173.9 |
|
|
Work in process |
|
|
175.8 |
|
|
|
164.1 |
|
|
Finished products |
|
|
75.3 |
|
|
|
76.8 |
|
|
Total inventories |
|
|
408.2 |
|
|
|
414.8 |
|
|
Income taxes receivable |
|
|
6.2 |
|
|
|
4.3 |
|
|
Assets held for sale |
|
|
1.8 |
|
|
|
3.4 |
|
|
Prepaid expenses and other current assets |
|
|
77.1 |
|
|
|
57.7 |
|
|
Total current assets |
|
|
1,022.9 |
|
|
|
980.9 |
|
|
Investment in unconsolidated affiliate |
|
|
130.3 |
|
|
|
114.6 |
|
|
Operating lease assets |
|
|
72.2 |
|
|
|
75.3 |
|
|
Goodwill |
|
|
79.7 |
|
|
|
78.6 |
|
|
Other intangible assets, net of accumulated amortization of $43.7 and $38.9 at February 29, 2024 and May 31, 2023, respectively |
|
|
78.6 |
|
|
|
83.4 |
|
|
Deferred tax asset |
|
|
5.8 |
|
|
|
6.3 |
|
|
Other assets |
|
|
12.1 |
|
|
|
10.9 |
|
|
Property, plant and equipment: |
|
|
|
|
|
|
||
|
Land |
|
|
39.1 |
|
|
|
37.6 |
|
|
Buildings and improvements |
|
|
176.8 |
|
|
|
168.6 |
|
|
Machinery and equipment |
|
|
892.2 |
|
|
|
847.5 |
|
|
Construction in progress |
|
|
48.9 |
|
|
|
20.3 |
|
|
Total property, plant and equipment |
|
|
1,157.0 |
|
|
|
1,074.0 |
|
|
Less: accumulated depreciation |
|
|
709.6 |
|
|
|
659.6 |
|
|
Total property, plant and equipment, net |
|
|
447.4 |
|
|
|
414.4 |
|
|
Total assets |
|
$ |
1,849.0 |
|
|
$ |
1,764.4 |
|
|
|
|
|
|
|
|
|
||
|
Liabilities and equity |
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
|
||
|
Accounts payable |
|
$ |
407.3 |
|
|
$ |
402.2 |
|
|
Short-term borrowings |
|
|
147.2 |
|
|
|
2.8 |
|
|
Accrued compensation, contributions to employee benefit plans and related taxes |
|
|
46.7 |
|
|
|
31.9 |
|
|
Dividends payable |
|
|
8.5 |
|
|
|
– |
|
|
Other accrued items |
|
|
15.3 |
|
|
|
15.6 |
|
|
Current operating lease liabilities |
|
|
6.7 |
|
|
|
5.9 |
|
|
Income taxes payable |
|
|
13.7 |
|
|
|
– |
|
|
Current maturities of long-term debt due to Former Parent |
|
|
– |
|
|
|
20.0 |
|
|
Total current liabilities |
|
|
645.4 |
|
|
|
478.4 |
|
|
Other liabilities |
|
|
38.2 |
|
|
|
33.6 |
|
|
Noncurrent operating lease liabilities |
|
|
68.4 |
|
|
|
71.7 |
|
|
Deferred income taxes |
|
|
26.7 |
|
|
|
26.1 |
|
|
Total liabilities |
|
|
778.7 |
|
|
|
609.8 |
|
|
Preferred shares, without par value; authorized – 1,000,000 shares at February 29, 2024; no shares issued or outstanding |
|
|
– |
|
|
|
– |
|
|
Common shares, without par value; authorized – 150,000,000 shares at February 29, 2024; issued and outstanding 49,294,494 shares and 100 shares at February 29, 2024 and May 31, 2023, respectively |
|
|
– |
|
|
|
– |
|
|
Additional Paid-in Capital |
|
|
903.0 |
|
|
|
– |
|
|
Retained Earnings |
|
|
40.9 |
|
|
|
– |
|
|
Net Investment by Former Parent |
|
|
– |
|
|
|
1,031.1 |
|
|
Accumulated other comprehensive loss, net of taxes of $(1.5) and $(2.6) at February 29, 2024 and May 31, 2023, respectively |
|
|
(6.3 |
) |
|
|
(2.1 |
) |
|
Total Shareholders’ equity – controlling interest |
|
|
937.6 |
|
|
|
1,029.0 |
|
|
Noncontrolling interests |
|
|
132.7 |
|
|
|
125.6 |
|
|
Total equity |
|
|
1,070.3 |
|
|
|
1,154.6 |
|
|
Total liabilities and equity |
|
$ |
1,849.0 |
|
|
$ |
1,764.4 |
|
|
WORTHINGTON STEEL, INC. CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
Nine Months Ended |
||||||||||||
|
|
|
February 29, |
|
February 28, |
|
February 29, |
|
February 28, |
||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net earnings |
|
$ |
52.4 |
|
|
$ |
9.3 |
|
|
$ |
112.4 |
|
|
$ |
28.1 |
|
|
Adjustment to reconcile net earnings (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
|
|
15.9 |
|
|
|
17.0 |
|
|
|
49.2 |
|
|
|
52.4 |
|
|
Impairment of long-lived assets |
|
|
– |
|
|
|
– |
|
|
|
1.4 |
|
|
|
0.3 |
|
|
Benefit from deferred income taxes |
|
|
(0.9 |
) |
|
|
(0.1 |
) |
|
|
(1.1 |
) |
|
|
(0.3 |
) |
|
Bad debt expense (income) |
|
|
(0.2 |
) |
|
|
2.3 |
|
|
|
(0.6 |
) |
|
|
3.6 |
|
|
Equity in net income of unconsolidated affiliate, net of distributions |
|
|
(2.9 |
) |
|
|
10.2 |
|
|
|
(15.7 |
) |
|
|
6.5 |
|
|
Net gain on sale of assets |
|
|
– |
|
|
|
– |
|
|
|
(0.4 |
) |
|
|
(3.8 |
) |
|
Stock-based compensation |
|
|
2.2 |
|
|
|
2.7 |
|
|
|
8.3 |
|
|
|
7.5 |
|
|
Changes in assets and liabilities, net of impact of acquisitions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Receivables |
|
|
(52.1 |
) |
|
|
9.6 |
|
|
|
4.4 |
|
|
|
123.6 |
|
|
Inventories |
|
|
(34.9 |
) |
|
|
34.3 |
|
|
|
13.4 |
|
|
|
179.4 |
|
|
Accounts payable |
|
|
45.5 |
|
|
|
14.6 |
|
|
|
(4.4 |
) |
|
|
(161.5 |
) |
|
Accrued compensation and employee benefits |
|
|
4.4 |
|
|
|
(1.0 |
) |
|
|
1.7 |
|
|
|
(6.5 |
) |
|
Other operating items, net |
|
|
15.3 |
|
|
|
19.3 |
|
|
|
(4.7 |
) |
|
|
6.4 |
|
|
Net cash provided by operating activities |
|
|
44.7 |
|
|
|
118.2 |
|
|
|
163.9 |
|
|
|
235.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Investment in property, plant and equipment |
|
|
(22.4 |
) |
|
|
(10.8 |
) |
|
|
(58.6 |
) |
|
|
(36.4 |
) |
|
Proceeds from sale of assets, net of selling costs |
|
|
– |
|
|
|
– |
|
|
|
0.8 |
|
|
|
23.2 |
|
|
Acquisitions, net of cash acquired |
|
|
– |
|
|
|
– |
|
|
|
(21.0 |
) |
|
|
– |
|
|
Net cash used in investing activities |
|
|
(22.4 |
) |
|
|
(10.8 |
) |
|
|
(78.8 |
) |
|
|
(13.2 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividend to Former Parent |
|
|
(150.0 |
) |
|
|
– |
|
|
|
(150.0 |
) |
|
|
– |
|
|
Transfers to Former Parent, net |
|
|
3.8 |
|
|
|
(99.5 |
) |
|
|
(47.6 |
) |
|
|
(138.7 |
) |
|
Proceeds from (repayment of) short-term borrowings |
|
|
(45.0 |
) |
|
|
(1.3 |
) |
|
|
127.2 |
|
|
|
(44.4 |
) |
|
Proceeds from revolving credit facility borrowings – swingline |
|
|
142.6 |
|
|
|
– |
|
|
|
142.6 |
|
|
|
– |
|
|
Repayments of revolving credit facility borrowings – swingline |
|
|
(125.4 |
) |
|
|
– |
|
|
|
(125.4 |
) |
|
|
– |
|
|
Principal payments on long-term debt |
|
|
– |
|
|
|
(5.0 |
) |
|
|
– |
|
|
|
(15.0 |
) |
|
Payments to noncontrolling interests |
|
|
(1.9 |
) |
|
|
– |
|
|
|
(3.8 |
) |
|
|
(11.8 |
) |
|
Net cash used in financing activities |
|
|
(175.9 |
) |
|
|
(105.8 |
) |
|
|
(57.0 |
) |
|
|
(209.9 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Increase (decrease) in cash and cash equivalents |
|
|
(153.6 |
) |
|
|
1.6 |
|
|
|
28.1 |
|
|
|
12.6 |
|
|
Cash and cash equivalents at beginning of period |
|
|
214.4 |
|
|
|
31.1 |
|
|
|
32.7 |
|
|
|
20.1 |
|
|
Cash and cash equivalents at end of period |
|
$ |
60.8 |
|
|
$ |
32.7 |
|
|
$ |
60.8 |
|
|
$ |
32.7 |
|
Contacts
Melissa Dykstra
Vice President, Corporate Communications and Investor Relations
Phone: 614-840-4144
[email protected]
