LONDON, UK / ACCESSWIRE / October 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Worthington Industries, Inc. (NYSE: WOR) ("Worthington"), which can be viewed by registering at http://protraderdaily.com/optin/'symbol=WOR, following the Company's announcement of its first quarter fiscal 2018 financial results on September 27, 2017. The metal manufacturer's sales and earnings numbers came in below market estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
http://protraderdaily.com/register/
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on WOR. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/'symbol=WOR
Earnings Reviewed
For its fiscal 2018 first quarter ended August 31, 2017, Worthington reported net sales of $848.2 million, up 15% over net sales of $737.5 million for Q1 FY17, driven by higher average selling prices in Steel Processing and contributions from the June 02, 2017 acquisition of Amtrol. The Company's revenue numbers missed analysts' expectations of $864.8 million.
During Q1 FY18, Worthington's gross margin decreased $14.5 million to $132.8 million on a y-o-y basis as contributions from Amtrol were more than offset by lower spreads at Steel Processing, down approximately $23.4 million from the prior year's same quarter, when rising steel prices led to significant inventory holding gains.
For Q1 FY18, Worthington's operating income totaled $42.2 million, a decrease of $22.7 million from the prior year's same quarter. The Company's interest expense was $8.8 million for the reported quarter compared to $7.9 million in the prior year's corresponding quarter. The increase was due primarily to the issuance of $200.0 million of senior unsecured notes due August 01, 2032.
Worthington's equity income from unconsolidated joint ventures decreased $7.2 million to $27.3 million on a y-o-y basis. ClarkDietrich's contribution to equity income was $7.9 million lower than the prior year's same quarter as higher steel prices compressed margins. The Company received cash distributions of $19.6 million from unconsolidated joint ventures during the reported quarter for a cash conversion rate of 72% on equity income.
Worthington reported net earnings of $45.5 million, or $0.70 per diluted share, for Q1 FY18. Net earnings in the quarter included pre-tax restructuring charges totaling $2.3 million, which reduced earnings per diluted share by $0.03. In Q1 FY17, the Company reported net earnings of $65.6 million, or $1.02 per diluted share. The Company's net earnings in the year-earlier comparable quarter were aided by significant inventory holding gains and included pre-tax restructuring charges totaling $1.3 million, which reduced earnings per diluted share by $0.01. Worthington's adjusted earnings of $0.73 per share lagged behind Wall Street's estimates of $0.82 per share.
Worthington Industries' Segment Results
During Q1 FY18, the Steel Processing segment's net sales totaled $543.49 million, up 7% compared to net sales of $505.67 million in Q1 FY17, driven by higher average selling prices. The segment's operating income of $32.87 million was $21.9 million on a y-o-y basis on lower spreads. The mix of direct versus toll tons processed was 56% to 44% in the reported quarter compared to 52% to 48% in the prior year's same quarter.
For Q1 FY18, the Pressure Cylinders division's net sales surged 31% to $269.8 million compared to $205.21 million in Q1 FY17 due to contributions from the Amtrol's acquisition and higher volumes in the oil & gas equipment business. The division's operating income of $10.5 million was $3.6 million less than the prior year's same quarter, driven primarily by the non-recurring costs related to the Amtrol's acquisition. Excluding those non-recurring costs, Amtrol would have reported operating income of $3.4 million.
On June 02, 2017, the Company acquired Amtrol, a leading manufacturer of pressure cylinders and water system tanks with operations in the US and Europe. Total purchase price was $291.9 million after adjusting for final working capital. Net assets became part of the Company's Pressure Cylinders operating segment at closing.
During Q1 FY18, the Engineered Cabs unit's net sales totaled $31.95 million, up 25% over the prior year's same quarter sales of $25.58 million on higher volume. The segment's operating loss narrowed to $361,000 in the reported quarter compared to $1.84 million in the prior year's comparable quarter due to the favorable impact of higher volume.
Balance Sheet
At August 31, 2017, Worthington's total debt was $780.6 million, up $202.0 million from May 31, 2017, due to the issuance of the 2032 Notes and the acquisition of Amtrol. The Company had $195.9 million of cash at quarter-end.
During Q1 FY18, Worthington repurchased a total of 875,000 common shares for $45.1 million at an average price of $51.52. On July 28, 2017, the Company completed a public offering of $200.0 million aggregate principal amount of senior unsecured notes. The notes bear interest at a rate of 4.3% and mature on August 01, 2032.
On September 27, 2017, Worthington's Board of directors declared a quarterly dividend of $0.21 per share. The dividend is payable on December 29, 2017, to shareholders of record December 15, 2017. This marks the 200th consecutive quarter that Worthington has paid a dividend since it became a public company in 1968.
In addition, the Board of Directors authorized the repurchase of up to an additional 6,828,855 of the Company's common shares, increasing the total number of common shares available for repurchase to 10,000,000.
Stock Performance
Worthington Industries' share price finished last Friday's trading session at $43.72, marginally down 0.48%. A total volume of 511.30 thousand shares have exchanged hands, which was higher than the 3-month average volume of 430.79 thousand shares. The Company's stock price advanced 0.88% in the past six months. Shares of the Company have a PE ratio of 15.38 and have a dividend yield of 1.92%. The stock currently has a market cap of $2.78 billion.
Pro-Trader Daily:
Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: contact@protraderdaily.com
Phone number: (917) 341.4653
Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Pro-Trader Daily
