GlobeNewswire Inc | Jun 23, 2021 04:15PM EDT

June 23, 2021

COLUMBUS, Ohio, June 23, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $978.3 million and net earnings of $113.6 million, or $2.15 per diluted share, for its fiscal 2021 fourth quarter ended May 31, 2021. In the fourth quarter of fiscal 2020, the Company reported net sales of $611.6 million and net earnings of $16.2 million, or $0.29 per diluted share. Results in both the current and prior year quarters were impacted by certain unique items, as summarized in the table below.

(U.S. dollars in millions, except per share amounts)

4Q 2021 4Q 2020 After-Tax Per After-Tax Per Share ShareNet earnings $ 113.6 $ 2.15 $ 16.2 $ 0.29 Impairment andrestructuring 10.9 0.20 11.0 0.20 chargesIncrementalexpenses related (1.1 ) (0.02 ) - - to Nikola gainsAdjusted net $ 123.4 $ 2.33 $ 27.2 $ 0.49 earnings

Financial highlights for the current and comparative periods are as follows:

(U.S. dollars in millions, except per share amounts)

4Q 2021 4Q 2020 12M 2021 12M 2020 Net sales $ 978.3 $ 611.6 $ 3,171.4 $ 3,059.1 Operating income 110.5 6.3 167.5 22.5 Equity income 42.4 17.3 123.3 114.8 Net earnings 113.6 16.2 723.8 78.8 Earnings per diluted $ 2.15 $ 0.29 $ 13.42 $ 1.41 share

We had an exceptional fiscal 2021 generating record fourth quarter and annual earnings per share, saidAndy Rose, President and CEO. While we benefitted from rising steel prices, we also saw robust demand across most of our businesses and joint ventures. I am very pleased with the way our teams executed this past year coming out of the pandemic, and I want to thank all of our employees for their hard work and continuing commitment to making the Company better and growing earnings for our shareholders.

Consolidated Quarterly Results

Net sales for the fourth quarter of fiscal 2021 were $978.3 million compared to $611.6 million, an increase of 60% over the comparable quarter in the prior year. The increase was driven by overall volume improvements in both Steel Processing and Pressure Cylinders and higher average direct selling prices in Steel Processing.

Gross margin increased $136.3 million over the prior year quarter to $226.1 million, primarily due to improved direct spreads in Steel Processing and the impact of higher overall volumes.

Operating income for the current quarter was $110.5 million, an increase of $104.1 million over the prior year quarter. The impact of higher gross margin was partially offset by higher SG&A expense, which was up $32.1 million, mostly due to higher profit sharing and bonus expense resulting from the significant increase in earnings.

Interest expense was $7.7 million in the current quarter, compared to $7.5 million in the prior year quarter. The increase was due primarily to higher average debt levels.

Equity income from unconsolidated joint ventures increased $25.1 million over the prior year quarter to $42.4 million on higher contributions from all joint ventures. The Company received cash distributions of $25.5 million from unconsolidated joint ventures during the quarter.

Income tax expense was $27.4 million in the current quarter compared to $5.8 million in the prior year quarter. The increase was driven by higher pre-tax earnings, partially offset by a discrete tax benefit realized in connection with the sale of the Companys liquified petroleum gas (LPG) fuel storage business in Poland. Tax expense in the current quarter reflects an annual effective rate of 19.6% compared to 25.1% for the prior year.

Balance Sheet

At quarter-end, total debt of $710.5 million was relatively consistent with debt at February 28, 2021, and the Company had $640.3 million of cash.

Quarterly Segment Results

Steel Processings net sales totaled $655.2 million, up 100%, or $327.0 million, over the comparable prior year quarter when COVID-19 related shutdowns significantly reduced demand. The increase in net sales was driven by higher average direct selling prices and higher volume. Operating income of $94.3 million was $96.1 million higher than the loss in the prior year quarter on improved direct spreads and the impact of higher volume. Direct spreads benefited from significant inventory holding gains, estimated to be $50.5 million in the current quarter compared to $0.6 million in the prior year quarter. The mix of direct versus toll tons processed was 48% to 52% in the current quarter, compared to 45% to 55% in the prior year quarter.

Pressure Cylinders net sales totaled $323.1 million, up 14%, or $40.2 million, over the comparable prior year quarter due to higher volumes in both the consumer and industrial products businesses. Operating income of $13.0 million was $0.5 million less than the prior year quarter. Excluding impairment and restructuring charges, operating income was up $9.3 million over the prior year quarter to $31.1 million, driven by higher volumes combined with the impact of divestitures of underperforming businesses completed earlier in the fiscal year.

Recent Developments

-- On March 12, 2021, the Company sold its Structural Composites Industries, LLC business located in Pomona, California to Luxfer Holdings PLC. The Company received net proceeds of $19.1 million, resulting in a pre-tax loss of $7.2 million within restructuring and other expense. -- On May 31, 2021, the Company sold its LPG fuel storage business, located in Poland, to Westport Fuel Systems, Inc. The Company received total consideration of approximately $6.0 million, resulting in a pre-tax loss of $11.0 million within restructuring and other expense. -- During the fourth quarter of fiscal 2021, the Company repurchased a total of 700,000 of its common shares for $46.8 million, at an average purchase price of $66.86. -- On June 8, 2021, the Company acquired certain assets of Shiloh Industries U.S. BlankLight business, a provider of laser welded solutions, for approximately $105.0 million, subject to closing adjustments. The acquisition includes three facilities that will expand the capacity and capabilities of TWBs laser welded products business and an additional blanking facility that will support the Companys core steel processing operations. -- On June 9, 2021, the Companys consolidated joint venture, WSP, sold the remaining assets of its Canton, Mich., facility for approximately $20.0 million. The Company expects to record a gain of approximately $12.0 million in the first quarter of fiscal 2022 related to the divestiture. WSP continues to operate locations in Jackson and Taylor, Mich. -- On June 10, 2021, the Company announced that its Pressure Cylinders segment was being divided into three new reporting segments: Consumer Products, Building Products and Sustainable Energy Solutions, effective at the start of fiscal year 2022. The three new reporting segments are in addition to the Companys Steel Processing segment. -- On June 23, 2021, Worthingtons Board of Directors declared a quarterly dividend of $0.28 per share payable on September 29, 2021 to shareholders of record on September 15, 2021.

Outlook

As we enter our new fiscal year, demand levels and backlogs are quite good across our key end markets. Going forward, we expect results will be positively impacted by our recent acquisitions and actions we have taken to divest underperforming assets, said Rose. Our businesses have solid growth strategies, underpinned by innovation, transformation and M&A, and our new reporting segments will allow our teams to reshape these businesses around larger, more attractive end markets.

Conference Call

Worthington will review fiscal 2021 fourth quarter results during its quarterly conference call on June 24, 2021, at 9:30 a.m., Eastern Time. Details regarding the conference call can be found on the Company website at www.WorthingtonIndustries.com.

About Worthington Industries

Worthington Industries (NYSE:WOR) is a leading industrial manufacturing company delivering innovative solutions to customers that span many industries including transportation, construction, industrial, agriculture, retail and energy. Worthington is North Americas premier value-added steel processor and producer of laser welded products; and a leading global supplier of pressure cylinders and accessories for applications such as fuel storage, water systems, outdoor living, tools and celebrations. The Companys brands, primarily sold in retail stores, include Coleman,Bernzomatic, Balloon Time, Mag Torch, Well-X-Trol, General, Garden-Weasel,PactoolInternational and Hawkeye. Worthingtons WAVE joint venture with Armstrong is the North American leader in innovative ceiling solutions.

Headquartered in Columbus, Ohio, Worthington operates 53 facilities in 15 states and seven countries, sells into over 90 countries and employs approximately 8,000 people. Founded in 1955, the Company follows a people-first philosophy with earning money for its shareholders as its first corporate goal. Relentlessly finding new ways to drive progress and practicing a shared commitment to transformation, Worthington makes better solutions possible for customers, employees, shareholders and communities.

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 the ever-changing effects of the novel coronavirus (COVID-19) pandemic and the various responses of governmental and nongovernmental authorities thereto (such as fiscal stimulus packages, quarantines, shut downs and other restrictions on travel and commercial, social or other activities) on economies (local, national and international) and markets, and on our customers, counterparties, employees and third-party service providers; future or expected cash positions, liquidity and ability to access financial markets and capital; outlook, strategy or business plans; 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 Companys 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; and other non-historical matters 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, the risks, uncertainties and impacts related to the COVID-19 pandemic the duration, extent and severity of which are impossible to predict, including the possibility of future resurgence in the spread of COVID-19 or variants thereof and the availability and effectiveness of vaccines, and other actual or potential public health emergencies and actions taken by governmental authorities or others in connection therewith; the effect of national, regional and global economic conditions generally and within major product markets, including significant economic disruptions from COVID-19, the actions taken in connection therewith and the implementation of related fiscal stimulus packages; the effect of conditions in national and worldwide financial markets and with respect to the ability of financial institutions to provide capital; the impact of tariffs, the adoption of trade restrictions affecting the Companys 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 ; product demand and pricing; changes in product mix, product substitution and market acceptance of the Companys products; fluctuations in the pricing, quality or availability of raw materials (particularly steel), supplies, transportation, utilities and other items required by operations; 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, interruption in utility services, civil unrest, international conflicts, 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, foreign currency exchange rate exposure and the acceptance of the Companys products in global markets; the ability to improve and maintain processes and business practices to keep pace with the economic, competitive and technological environment; 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 Companys markets; the impact of environmental laws and regulations or other actions of the environmental protection agency or similar regulators which increase costs or limit the ability to use or sell certain products; 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 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, the Dodd-Frank Wall Street Reform and the Consumer Protection Act of 2010; the effect of healthcare laws in the United States and potential changes for such laws, especially in light of the COVID-19 pandemic, which may increase the Companys healthcare and other costs and negatively impact the Companys 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 Companys filings with the United States Securities and Exchange Commission, including those described in Part I Item 1A. Risk Factors of the Companys Annual Report on Form 10-K for the fiscal year ended May 31, 2020.

WORTHINGTON INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF EARNINGS(In thousands, except per share amounts)

Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020Net sales $ 978,319 $ 611,627 $ 3,171,429 $ 3,059,119 Cost of goods 752,171 521,737 2,532,351 2,615,782 soldGross margin 226,148 89,890 639,078 443,337 Selling,general and 99,925 67,816 351,145 328,110 administrativeexpenseImpairment ofgoodwill and - 7,462 13,739 82,690 long-livedassetsRestructuringand other 18,441 8,267 56,097 10,048 expense, netIncrementalexpenses (2,676 ) - 50,624 - related toNikola gainsOperating 110,458 6,345 167,473 22,489 incomeOther income (expense):Miscellaneous 797 783 2,163 9,099 income, netInterest (7,650 ) (7,459 ) (30,346 ) (31,616 )expenseEquity in netincome of 42,386 17,256 123,325 114,848 unconsolidatedaffiliatesGains oninvestment in - - 655,102 - NikolaLoss onextinguishment - - - (4,034 )of debtEarningsbefore income 145,991 16,925 917,717 110,786 taxesIncome tax 27,449 5,836 176,267 26,342 expenseNet earnings 118,542 11,089 741,450 84,444 Net earnings(loss)attributable 4,987 (5,086 ) 17,655 5,648 tononcontrollinginterestsNet earningsattributable $ 113,555 $ 16,175 $ 723,795 $ 78,796 to controllinginterest Basic Average commonshares 51,587 54,604 52,701 54,958 outstandingEarnings pershareattributable $ 2.20 $ 0.30 $ 13.73 $ 1.43 to controllinginterest Diluted Average commonshares 52,862 55,206 53,917 55,983 outstandingEarnings pershareattributable $ 2.15 $ 0.29 $ 13.42 $ 1.41 to controllinginterest Common sharesoutstanding at 51,330 54,616 51,330 54,616 end of period Cash dividendsdeclared per $ 0.28 $ 0.24 $ 1.03 $ 0.96 share

WORTHINGTON INDUSTRIES, INC.CONSOLIDATED BALANCE SHEETS(In thousands)

May 31, May 31, 2021 2020 Assets Current assets: Cash and cash equivalents $ 640,311 $ 147,198 Receivables, less allowances of $608 and $1,521 at May 31, 2021and May 31, 2020, respectively 639,964 341,038 Inventories: Raw materials 266,208 234,629 Work in process 183,413 76,497 Finished products 115,133 93,975 Total inventories 564,754 405,101 Income taxes receivable 1,958 8,376 Assets held for sale 51,956 12,928 Prepaid expenses and other current assets 69,049 68,538 Total current assets 1,967,992 983,179 Investments in unconsolidated affiliates 233,126 203,329 Operating lease assets 35,101 31,557 Goodwill 351,056 321,434 Other intangible assets, net of accumulated amortization of $80,513 and$92,774 at May 31, 2021 and May 31, 2020, 240,387 184,416 respectivelyOther assets 30,566 34,956 Property, plant and equipment: Land 21,744 24,197 Buildings and improvements 271,196 302,796 Machinery and equipment 1,046,065 1,055,139 Construction in progress 53,903 52,231 Total property, plant and equipment 1,392,908 1,434,363 Less: accumulated depreciation 877,891 861,719 Total property, plant and equipment, net 515,017 572,644 Total assets $ 3,373,245 $ 2,331,515 Liabilities and equity Current liabilities: Accounts payable $ 567,392 $ 247,017 Accrued compensation, contributions to employee benefit plans andrelated taxes 137,698 64,650 Dividends payable 16,536 14,648 Other accrued items 52,250 49,974 Current operating lease liabilities 9,947 10,851 Income taxes payable 3,620 949 Current maturities of long-term debt 458 149 Total current liabilities 787,901 388,238 Other liabilities 82,824 75,786 Distributions in excess of investment in 99,669 103,837 unconsolidated affiliateLong-term debt 710,031 699,516 Noncurrent operating lease liabilities 27,374 25,763 Deferred income taxes, net 113,751 71,942 Total liabilities 1,821,550 1,365,082 Shareholders' equity - controlling interest 1,398,193 820,821 Noncontrolling interests 153,502 145,612 Total equity 1,551,695 966,433 Total liabilities and equity $ 3,373,245 $ 2,331,515

WORTHINGTON INDUSTRIES, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands)

Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020Operating activities:Net earnings $ 118,542 $ 11,089 $ 741,450 $ 84,444 Adjustments toreconcile netearnings tonet cash provided byoperatingactivities:Depreciationand 21,990 23,125 87,654 92,678 amortizationImpairment ofgoodwill and - 7,462 13,739 82,690 long-livedassetsProvision for(benefit from) (4,304 ) 352 4,822 (1,309 )deferredincome taxesBad debt(income) (95 ) (4 ) (255 ) 580 expenseEquity in netincome ofunconsolidated (16,881 ) 27,377 (32,318 ) 8,106 affiliates,net ofdistributionsNet (gain)loss on sale 18,293 180 53,607 (5,057 )of assetsStock-based 4,692 1,883 19,129 11,883 compensationGains oninvestment in - - (655,102 ) - NikolaCharitablecontribution - - 20,653 - of NikolasharesLoss onextinguishment - - - 4,034 of debtChanges inassets andliabilities, net of impactofacquisitions:Receivables (112,535 ) 131,708 (223,254 ) 147,225 Inventories (163,149 ) (28,781 ) (169,740 ) 62,126 Accounts 157,593 (114,337 ) 315,222 (142,684 )payableAccruedcompensation 27,134 10,862 75,725 (11,878 )and employeebenefitsIncome taxes (33,896 ) 525 2,671 (215 )payableOtheroperating 22,923 9,435 20,376 4,103 items, netNet cashprovided by 40,307 80,876 274,379 336,726 operatingactivities Investing activities:Investment inproperty, (16,857 ) (23,729 ) (82,178 ) (95,503 )plant andequipmentProceeds fromsale of Nikola - - 634,449 - sharesAcquisitions,net of cash 203 (965 ) (129,615 ) (30,748 )acquiredProceeds from 25,259 718 45,854 10,036 sale of assetsNet cashprovided(used) by 8,605 (23,976 ) 468,510 (116,215 )investingactivities Financing activities:Proceeds fromlong-term - - - 101,464 debt, net ofissuance costsPrincipalpayments onlong-termobligations (330 ) (102 ) (622 ) (154,913 )and debtredemptioncostsProceeds fromissuance ofcommon shares, 4,872 82 6,581 (6,513 )net of taxwithholdingsPayments tononcontrolling (2,880 ) - (10,690 ) (1,453 )interestsRepurchase of (46,804 ) - (192,054 ) (50,972 )common sharesDividends paid (12,964 ) (13,112 ) (52,991 ) (53,289 )Net cash usedby financing (58,106 ) (13,132 ) (249,776 ) (165,676 )activities Increase(decrease) in (9,194 ) 43,768 493,113 54,835 cash and cashequivalentsCash and cashequivalents at 649,505 103,430 147,198 92,363 beginning ofperiodCash and cashequivalents at $ 640,311 $ 147,198 $ 640,311 $ 147,198 end of period

WORTHINGTON INDUSTRIES, INC.SUPPLEMENTAL DATA(In thousands, except volume)

This supplemental information is provided to assist in the analysis of the results of operations. Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020Volume: SteelProcessing 1,099,477 795,161 4,066,773 3,830,675 (tons)PressureCylinders 25,161,866 23,346,466 86,769,147 82,519,829 (units) Net sales: Steel $ 655,177 $ 328,222 $ 2,059,397 $ 1,859,670 ProcessingPressure 323,142 282,898 1,110,973 1,148,424 CylindersOther - 507 1,059 51,025 Total net $ 978,319 $ 611,627 $ 3,171,429 $ 3,059,119 sales Material cost: Steel $ 427,048 $ 230,076 $ 1,360,089 $ 1,339,898 ProcessingPressure 138,130 123,639 465,917 496,906 Cylinders Selling,general and administrativeexpense:Steel $ 48,682 $ 27,664 $ 165,382 $ 136,664 ProcessingPressure 52,095 40,090 186,398 180,721 Cylinders Operating income (loss):Steel $ 94,333 $ (1,797 ) $ 208,648 $ 40,564 ProcessingPressure 12,970 13,498 9,276 38,903 CylindersOther (529 ) (6,133 ) (1,499 ) (54,968 )Segmentoperating 106,774 5,568 216,425 24,499 incomeUnallocatedcorporate and 1,008 777 1,672 (2,010 )otherIncrementalexpenses 2,676 - (50,624 ) - related toNikola gainsTotaloperating $ 110,458 $ 6,345 $ 167,473 $ 22,489 income Equity income(loss) by unconsolidatedaffiliate:WAVE $ 24,460 $ 15,334 $ 78,869 $ 101,063 ClarkDietrich 8,365 3,309 24,578 17,225 Serviacero 8,571 (1,029 ) 15,965 1,325 WorthingtonArtiFlex 1,596 (297 ) 4,475 2,731 Other (606 ) (61 ) (562 ) (7,496 )Total equity $ 42,386 $ 17,256 $ 123,325 $ 114,848 income

WORTHINGTON INDUSTRIES, INC.SUPPLEMENTAL DATA(In thousands, except volume)

The following provides detail of Pressure Cylinders volume and net sales by principal class of products. Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020Volume (units):Consumer 20,646,812 18,926,216 71,399,889 68,596,103 productsIndustrial 4,515,054 4,419,990 15,368,823 13,921,973 productsOil & gas - 260 435 1,753 equipmentTotalPressure 25,161,866 23,346,466 86,769,147 82,519,829 Cylinders Net sales: Consumer $ 162,723 $ 125,188 $ 537,930 $ 485,990 productsIndustrial 160,419 138,549 552,093 550,543 productsOil & gas - 19,161 20,950 111,891 equipmentTotalPressure $ 323,142 $ 282,898 $ 1,110,973 $ 1,148,424 Cylinders The following provides detail of impairment of goodwill and long-lived assetsand restructuring and other expense, net included in operating income by segment. Three Months Ended Twelve Months Ended May 31, May 31, May 31, May 31, 2021 2020 2021 2020Impairment ofgoodwill and long-livedassets:Steel $ - $ 565 $ - $ 1,839 ProcessingPressure - 3,800 13,739 37,153 CylindersOther - 3,097 - 43,698 Totalimpairment ofgoodwill and $ - $ 7,462 $ 13,739 $ 82,690 long-livedassets Restructuringand other expense, net:Steel $ 79 $ 2,799 $ 1,883 $ 3,501 ProcessingPressure 18,149 4,535 54,155 5,282 CylindersOther 213 933 59 1,265 Totalrestructuring $ 18,441 $ 8,267 $ 56,097 $ 10,048 and otherexpense, net

WORTHINGTON INDUSTRIES, INC.NON-GAAP FINANCIAL MEASURES(In thousands, except per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States (GAAP). The Company also presents adjusted earnings per diluted share and adjusted operating income to assist in the understanding of its results of operations. These represent non-GAAP financial measures and are used by management as measures of operating performance. In general, these measures exclude impairment and restructuring charges, but may also exclude other items that management does not believe reflect the Companys core operations.

The following provides a reconciliation of adjusted operating income and adjusted earnings per diluted share to the most comparable GAAP measures for the periods presented.

Three Months Ended May 31, 2021 Earnings Income Net Earnings Earnings Operating Before Tax Attributable per Income Income Expense to Diluted Taxes (Benefit) Controlling Share Interest^1GAAP $ 110,458 $ 145,991 $ 27,449 $ 113,555 $ 2.15 Restructuringand other 18,441 18,441 (7,413 ) 10,998 0.20 expense, netIncrementalexpenses (2,676 ) (2,676 ) 1,544 (1,132 ) (0.02 )related toNikola gainsNon-GAAP $ 126,223 $ 161,756 $ 33,318 $ 123,421 $ 2.33

Three Months Ended May 31, 2020 Earnings Income Net Earnings Earnings Operating Before Tax Attributable per Income Income Expense to Diluted Taxes (Benefit) Controlling Share Interest^1GAAP $ 6,345 $ 16,925 $ 5,836 $ 16,175 $ 0.29 Impairment oflong-lived 7,462 7,462 (1,865 ) 5,406 0.10 assetsRestructuringand other 8,267 8,267 (2,134 ) 5,615 0.10 expense, netNon-GAAP $ 22,074 $ 32,654 $ 9,835 $ 27,196 $ 0.49 Change $ 104,149 $ 129,102 $ 23,483 $ 96,225 $ 1.84 ^1 Excludesthe impact ofthe noncontrollinginterest.

The following provides a reconciliation of adjusted operating income to the most comparable GAAP measure for the Companys Pressure Cylinders segment for the periods presented.

Three Months Ended May 31, May 31, 2021 2020Operating income $ 12,970 $ 13,498 Impairment of long-lived assets - 3,800 Restructuring and other expense, net 18,149 4,535 Adjusted operating income $ 31,119 $ 21,833

Contacts:SONYA L. HIGGINBOTHAMVP, CORPORATE COMMUNICATIONS AND BRAND MANAGEMENT614.438.7391 | sonya.higginbotham@worthingtonindustries.com

MARCUS A. ROGIERTREASURER AND INVESTOR RELATIONS OFFICER614.840.4663 | marcus.rogier@worthingtonindustries.com

200 Old Wilson Bridge Rd. | Columbus, Ohio 43085WorthingtonIndustries.com