Q4 2024 Worthington Enterprises Inc Earnings Call Transcript
Key Points
- Worthington Enterprises Inc (WOR) reported a respectable quarter with adjusted EBITDA of $63 million and adjusted earnings per share of $0.74.
- The company successfully executed two significant transactions: the acquisition of Hexagon Ragasco and the formation of a joint venture with Hexagon Composites.
- The Hexagon Ragasco acquisition expands Worthington's product portfolio and global reach, particularly in the lightweight composite liquefied propane gas cylinders market.
- The joint venture with Hexagon Composites positions Worthington to capitalize on emerging opportunities in the hydrogen and compressed natural gas storage and transport markets.
- Worthington Enterprises Inc (WOR) maintains a strong balance sheet with $244 million in cash and a low net debt to trailing EBITDA leverage ratio of less than a quarter turn.
- Worthington Enterprises Inc (WOR) reported a GAAP loss from continuing operations of $0.64 per share in Q4, compared to earnings of $1.1 per share in the prior year.
- Consolidated net sales in the quarter decreased by 13.6% to $319 million, primarily due to lower volumes across all segments.
- Gross profit for the quarter decreased to $79 million from $94 million in Q4 of the previous year, with gross margin slightly down to 24.8%.
- The consumer products segment experienced a significant volume decrease of 17.9%, impacting adjusted EBITDA, which fell to $17 million from $30 million in the prior year.
- The building products segment also saw a decline in net sales and adjusted EBITDA, driven by a less favorable product mix and lower volumes, particularly in the large format heating end market.
Good morning, and welcome to the Worthington Enterprises fourth-quarter fiscal 2024 earnings conference call. This conference is being recorded at the request of Worthington Enterprises. If anyone objects, you may disconnect at this time. I'd like to introduce Marcus Rogier, Treasurer and Investor Relations Officer. Mr. Rogier, you may begin.
Thank you, Krista. Good morning, everyone, and welcome to Worthington Enterprises fourth-quarter fiscal 2024 earnings call. On our call today, we have Andy Rose, Worthington's, President and Chief Executive Officer; and Joe Hayek, Worthington's Chief Financial and Operations Officer.
Before we get started, I'd like to note that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risks and uncertainties that could cause actual results to differ from those suggested. We issued our earnings release yesterday after the market close.
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