GlobeNewswire Inc | Sep 29, 2021 06:45AM EDT

September 29, 2021

COLUMBUS, Ohio, Sept. 29, 2021 (GLOBE NEWSWIRE) -- Worthington Industries, Inc. (NYSE: WOR) today reported net sales of $1.1 billion and net earnings of $132.5 million, or $2.55 per diluted share, for its fiscal 2022 first quarter ended August 31, 2021. In the first quarter of fiscal 2021, the Company reported net sales of $702.9 million and net earnings of $616.7 million, or $11.22 per diluted share. Results in both the current and prior year quarter were impacted by certain unique items, as summarized in the table below.

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

1Q 2022 1Q 2021 After-Tax Per After-Tax Per Share ShareNet earnings $ 132.5 $ 2.55 $ 616.7 $ 11.22 Impairment andrestructuring (4.8 ) (0.09 ) 9.0 0.16 charges (gains)Incrementalexpenses related - - 39.5 0.72 to Nikola gainsGains oninvestment in - - (629.9 ) (11.46 )NikolaAdjusted net $ 127.7 $ 2.46 $ 35.3 $ 0.64 earnings

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

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

1Q 2022 1Q 2021 Net sales $ 1,110.8 $ 702.9 Operating income (loss) 135.8 (30.1 ) Equity income 52.9 23.6 Net earnings 132.5 616.7 Earnings per diluted share $ 2.55 $ 11.22

We again delivered record adjusted earnings per share, led by exceptional results in our Steel Processing segment, saidAndy Rose, President and CEO. We had solid demand across our major end markets but also continued to face challenges with customer shut-downs due to semi-conductor and other parts shortages, labor availability, and tight supply chains which prevented the quarter from being even better.

Consolidated Quarterly Results

Net sales for the first quarter of fiscal 2022 were $1.1 billion compared to $702.9 million, an increase of 58% over the comparable quarter in the prior year. The increase was driven primarily by higher average direct selling prices in Steel Processing.

Gross margin increased $106.0 million over the prior year quarter to $219.4 million, primarily due to improved direct spreads in Steel Processing and, to a lesser extent, higher overall volume.

Operating income for the current quarter was $135.8 million, an increase of $165.9 million over the operating loss in the prior year quarter. Excluding impairment and restructuring charges in both quarters and the impact of Nikola in the prior year quarter, operating income was $123.5 million for the current quarter, an increase of $92.4 million over the prior year quarter, as the impact of higher gross margin was partially offset by higher SG&A expense, up $13.7 million, on higher profit sharing and bonus expense.

Interest expense was relatively flat at $7.7 million for the current quarter, compared to $7.6 million in the prior year quarter.

Equity income from unconsolidated joint ventures increased $29.3 million over the prior year quarter to $52.9 million, driven by higher contributions from ClarkDietrich, WAVE, and Serviacero, where results benefited from higher steel prices. The Company received cash distributions of $19.7 million from unconsolidated joint ventures during the quarter.

Income tax expense was $40.2 million in the current quarter compared to $163.8 million in the prior year quarter. The decrease was due to lower pre-tax earnings, driven by the gains on our investment in Nikola in the prior year quarter. Tax expense in the current quarter reflects an estimated annual effective rate of 23.3% compared to 21.6% for the prior year quarter.

Balance Sheet

At quarter-end, total debt of $706.4 million was down slightly from May 31, 2021, and the Company had cash of $399.2 million, a decrease of $241.1 million from year-end primarily due to the acquisition of certain assets of Shiloh Industries and the increase in working capital as the price of steel continued to rise throughout the quarter.

Quarterly Segment Results

Effective June 1, 2021, the Company reorganized the management structure of Pressure Cylinders to better align around end markets, resulting in three new reportable operating segments: Consumer Products, Building Products, and Sustainable Energy Solutions. The divested businesses historically reported within Pressure Cylinders are not included in the new management structure but are presented within the Other category. Our Steel Processing operating segment was not impacted by these changes. In addition, beginning with the first quarter of fiscal 2022, we began assessing segment performance based on adjusted earnings before interest and taxes (adjusted EBIT). See the supplemental financial data attached below for further information regarding this new segment profit measure.

Steel Processings net sales totaled $822.8 million, up $391.8 million, from the comparable prior year quarter. The increase in net sales was driven by higher average selling prices and, to a lesser extent, higher volume. Adjusted EBIT of $107.7 million was up $93.5 million, as operating income increased $86.3 million after adjusting for the impact of restructuring in both the current and prior year quarters. The increase resulted primarily from improved direct spreads, which benefited from significant inventory holding gains, estimated to be $47.1 million in the current quarter compared to a loss of $6.8 million in the prior year quarter. Adjusted EBIT in the current quarter also benefited from higher equity earnings at Serviacero, up $8.0 million on the impact of higher steel prices. The mix of direct versus toll tons processed was unchanged at 49% to 51%.

Consumer Products net sales totaled $147.8 million, up 10.6%, or $14.2 million, from the comparable prior year quarter driven by the acquisition of General Tools & Instruments in the third quarter of fiscal 2021. Adjusted EBIT of $20.6 million was down $3.4 million from the prior year quarter due to an increase in profit sharing and bonus expense and, to a lesser extent, compressed margins resulting from higher input costs.

Building Products net sales totaled $114.7 million, up 30.2%, or $26.6 million, from the comparable prior year quarter due to higher volume and a favorable product mix. Adjusted EBIT of $48.8 million was $25.4 million more than the prior year quarter, due primarily to higher equity earnings at WAVE and ClarkDietrich, up $20.4 million on strong volume and the favorable impact of higher steel prices. Excluding impairment and restructuring charges, operating income was up $4.9 million on the combined impact of improved volume and a favorable shift in product mix, partially offset by an increase in profit sharing and bonus expense. Volume in the prior year quarter was at depressed levels due to the COVID-19 pandemic.

Sustainable Energy Solutions net sales totaled $25.5 million, down 8.5%, or $2.4 million, from the comparable prior year quarter on lower volume. Adjusted EBIT was a loss of $2.6 million, unfavorable $2.0 million to the prior year quarter, on the combined impact of lower volume and an unfavorable product mix. Both volume and mix in the current quarter were negatively impacted by the ongoing semi-conductor chip shortage.

Recent Developments

-- On June 8, 2021, the Company acquired certain assets ofShiloh Industries' U.S. BlankLight business, a provider of laser welded solutions, for approximately $105 million, subject to closing adjustments. The acquisition includedthreefacilities 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 million resulting in a pre-tax restructuring gain of $12.1 million. WSP continues to operate locations in Jackson and Taylor, Michigan. -- On Aug. 20, 2021, the Company amended and restated its existing five-year, revolving credit facility, extending the maturity to August 20, 2026. The aggregate commitments under the amended and restated revolving credit facility remain at $500 million. -- During the first quarter of fiscal 2022, the Company repurchased a total of 1,000,000 of its common shares for $60.9 million, at an average purchase price of $60.87.

Outlook

The Company is performing well, and while demand from our major end markets remains healthy, we will likely continue to face labor challenges and be impacted by lower automotive demand due to the ongoing semi-conductor shortage, Rose said. Despite this, we are off to a great start for fiscal 2022 and Im confident our teams will continue to navigate these challenges and deliver for our customers."

Conference Call

Worthington will review fiscal 2022 first quarter results during its quarterly conference call on September 29, 2021, at 2:30 p.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 is 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 the actions of the United States Environmental Protection Agency or similar regulators which increase costs or limit the Companys ability to 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 Act of 2021, and 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 filings of Worthington Industries, Inc. with the United States Securities and Exchange Commission, including those described in Part I Item 1A. Risk Factors of the Annual Report on Form 10-K of Worthington Industries, Inc. for the fiscal year ended May 31, 2021.



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

Three Months Ended August 31, 2021 2020 Net sales $ 1,110,818 $ 702,909 Cost of goods sold 891,444 589,551 Gross margin 219,374 113,358 Selling, general and administrative expense 95,851 82,196 Impairment of long-lived assets - 9,924 Restructuring and other (income) expense, net (12,274 ) 1,848 Incremental expenses related to Nikola gains - 49,511 Operating income (loss) 135,797 (30,121 )Other income (expense): Miscellaneous income, net 630 452 Interest expense (7,718 ) (7,590 )Equity in net income of unconsolidated 52,916 23,634 affiliatesGains on investment in Nikola - 796,141 Earnings before income taxes 181,625 782,516 Income tax expense 40,150 163,778 Net earnings 141,475 618,738 Net earnings attributable to noncontrolling 8,984 2,063 interestsNet earnings attributable to controlling $ 132,491 $ 616,675 interest Basic Average common shares outstanding 50,852 54,070 Earnings per share attributable to controlling $ 2.61 $ 11.41 interest Diluted Average common shares outstanding 51,865 54,942 Earnings per share attributable to controlling $ 2.55 $ 11.22 interest Common shares outstanding at end of period 50,438 53,362 Cash dividends declared per share $ 0.28 $ 0.25

CONSOLIDATED BALANCE SHEETSWORTHINGTON INDUSTRIES, INC.(In thousands)

August 31, May 31, 2021 2021 Assets Current assets: Cash and cash equivalents $ 399,246 $ 640,311 Receivables, less allowances of $466 and $608 at August 31, 2021and May 31, 2021, respectively 718,368 639,964 Inventories: Raw materials 327,463 266,208 Work in process 290,789 183,413 Finished products 124,156 115,133 Total inventories 742,408 564,754 Income taxes receivable - 1,958 Assets held for sale 39,744 51,956 Prepaid expenses and other current assets 70,544 69,049 Total current assets 1,970,310 1,967,992 Investments in unconsolidated affiliates 259,132 233,126 Operating lease assets 93,616 35,101 Goodwill 375,196 351,056 Other intangible assets, net of accumulated amortization of $83,562 and$80,513 at August 31, 2021 and May 31, 2021, 270,223 240,387 respectivelyOther assets 31,010 30,566 Property, plant and equipment: Land 21,566 21,744 Buildings and improvements 270,723 271,196 Machinery and equipment 1,087,757 1,046,065 Construction in progress 59,962 53,903 Total property, plant and equipment 1,440,008 1,392,908 Less: accumulated depreciation 891,740 877,891 Total property, plant and equipment, net 548,268 515,017 Total assets $ 3,547,755 $ 3,373,245 Liabilities and equity Current liabilities: Accounts payable $ 653,377 $ 567,392 Accrued compensation, contributions to employee benefit plans andrelated taxes 91,521 137,698 Dividends payable 16,273 16,536 Other accrued items 51,710 52,250 Current operating lease liabilities 11,608 9,947 Income taxes payable 39,477 3,620 Current maturities of long-term debt 291 458 Total current liabilities 864,257 787,901 Other liabilities 78,008 82,824 Distributions in excess of investment in 92,917 99,669 unconsolidated affiliateLong-term debt 706,130 710,031 Noncurrent operating lease liabilities 83,827 27,374 Deferred income taxes, net 115,984 113,751 Total liabilities 1,941,123 1,821,550 Shareholders' equity - controlling interest 1,453,343 1,398,193 Noncontrolling interests 153,289 153,502 Total equity 1,606,632 1,551,695 Total liabilities and equity $ 3,547,755 $ 3,373,245

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

Three Months Ended August 31, 2021 2020 Operating activities: Net earnings $ 141,475 $ 618,738 Adjustments to reconcile net earnings to net cash provided by operating activities:Depreciation and amortization 22,064 22,211 Impairment of long-lived assets - 9,924 Provision for deferred income taxes 1,366 71,031 Bad debt expense 179 94 Equity in net income of unconsolidated (33,218 ) (6,757 )affiliates, net of distributionsNet (gain) loss on sale of assets (12,706 ) 402 Stock-based compensation 3,303 4,856 Gains on investment in Nikola - (796,141 )Charitable contribution of Nikola shares - 20,653 Changes in assets and liabilities, net of impact of acquisitions:Receivables (31,868 ) (82,194 )Inventories (163,682 ) 85,622 Accounts payable 46,668 47,154 Accrued compensation and employee benefits (46,177 ) 23,852 Income taxes payable 35,857 83,664 Other operating items, net (13,073 ) 14,279 Net cash (used) provided by operating (49,812 ) 117,388 activities Investing activities: Investment in property, plant and equipment (23,925 ) (32,871 )Acquisitions, net of cash acquired (104,750 ) - Proceeds from sale of assets 26,685 - Proceeds from sale of Nikola shares - 487,859 Net cash (used) provided by investing (101,990 ) 454,988 activities Financing activities: Principal payments on long-term obligations (392 ) (97 )Proceeds from issuance of common shares, net (4,091 ) (1,150 )of tax withholdingsPayments to noncontrolling interests (9,197 ) (560 )Repurchase of common shares (60,885 ) (54,320 )Dividends paid (14,698 ) (13,379 )Net cash used by financing activities (89,263 ) (69,506 ) Increase (decrease) in cash and cash (241,065 ) 502,870 equivalentsCash and cash equivalents at beginning of 640,311 147,198 periodCash and cash equivalents at end of period $ 399,246 $ 650,068

WORTHINGTON INDUSTRIES, INC.NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA(In thousands, except volume and 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 operating income and adjusted net earnings per diluted share attributable to controlling interest, which generally exclude impairment and restructuring charges as well as other items that management believes are not reflective of, and thus should not be included when evaluating the performance of its ongoing operations. Additionally, the Company presents adjusted operating income and adjusted earnings before interest and taxes attributable to controlling interest for purposes of evaluating segment performance. These represent non-GAAP financial measures and are used by management to evaluate the Companys performance, engage in financial and operational planning and determine incentive compensation because it believes that these measures provide additional perspective and, in some circumstances are more closely correlated to, the performance of the Companys ongoing operations.

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

Three Months Ended August 31, 2021 Earnings Income Net Earnings Earnings Operating Before Tax Attributable per Income Income Expense to Diluted Taxes (Benefit) Controlling Share Interest^1GAAP $ 135,797 $ 181,625 $ 40,150 $ 132,491 $ 2.55 Restructuringand other (12,274 ) (12,274 ) 1,481 (4,848 ) (0.09 )income, netNon-GAAP $ 123,523 $ 169,351 $ 38,669 $ 127,643 $ 2.46

Three Months Ended August 31, 2020 Earnings Net Earnings Earnings Operating Before Income Tax Attributable per Income Income Expense to Diluted (Loss) Taxes (Benefit) Controlling Share Interest^1GAAP $ (30,121 ) $ 782,516 $ 163,778 $ 616,675 $ 11.22 Impairment oflong-lived 9,924 9,924 (2,303 ) 7,621 0.14 assetsRestructuringand other 1,848 1,848 (402 ) 1,330 0.02 expense, netIncrementalexpenses 49,511 49,511 (9,948 ) 39,563 0.72 related toNikola gainsGains oninvestment in - (796,141 ) 166,197 (629,945 ) (11.46 )NikolaNon-GAAP $ 31,162 $ 47,658 $ 10,234 $ 35,244 $ 0.64 Change $ 92,361 $ 121,693 $ 28,435 $ 92,399 $ 1.82 ^1 Excludes the impact of the noncontrolling interest.

To further assist in the analysis of segment results for the periods presented, the following volume and sales information has been provided along with a reconciliation of adjusted EBIT to the most comparable GAAP measure, which is operating income (loss) for purposes of measuring segment profit:

Three Months Ended August 31, 2021 Steel Consumer Building Sustainable Processing Products Products Energy Other Consolidated SolutionsVolume (tons/ 1,062,288 21,388,140 2,885,711 130,676 - n/a units)Net Sales $ 822,810 $ 147,783 $ 114,743 $ 25,482 $ - $ 1,110,818 Operating $ 113,482 $ 20,506 $ 5,834 $ (2,352 ) $ (1,673 ) $ 135,797 incomeRestructuringand other (12,131 ) - - (143 ) - (12,274 )income, netAdjustedoperating 101,351 20,506 5,834 (2,495 ) (1,673 ) 123,523 income (loss)Miscellaneous 30 49 (73 ) (59 ) 683 630 income, netEquity in netincome ofunconsolidated 9,349 - 42,993 - 574 52,916 affiliates ^(1)Net earningsattributableto 3,038 - - - - 3,038 noncontrollinginterests ^(2)Adjustedearnings(loss) before $ 107,692 $ 20,555 $ 48,754 $ (2,554 ) $ (416 ) $ 174,031 interest andtaxes

WORTHINGTON INDUSTRIES, INC.NON-GAAP FINANCIAL MEASURES / SUPPLEMENTAL DATA(In thousands, except volume)(Continued)

Three Months Ended August 31, 2020 Steel Consumer Building Sustainable Processing Products Products Energy Other Consolidated SolutionsVolume (tons/ 928,444 18,820,563 2,722,035 189,908 10,559 n/a units)Net Sales $ 431,020 $ 133,622 $ 88,103 $ 27,857 $ 22,307 $ 702,909 Operating income $ 13,617 $ 23,424 $ (440 ) $ (643 ) $ (66,079 ) $ (30,121 )(loss)Impairment of - 506 1,423 - 7,995 9,924 long-lived assetsRestructuring andother expense, 1,471 - - - 377 1,848 netIncrementalexpenses related - - - - 49,511 49,511 to Nikola gainsAdjustedoperating income 15,088 23,930 983 (643 ) (8,196 ) 31,162 (loss)Miscellaneous (43 ) (21 ) (161 ) 82 595 452 income, netEquity in netincome of 1,309 - 22,552 - (227 ) 23,634 unconsolidatedaffiliates ^(1)Net earningsattributable to 2,179 - - - - 2,179 noncontrollinginterests ^(2)Adjusted earnings(loss) before $ 14,175 $ 23,909 $ 23,374 $ (561 ) $ (7,828 ) $ 53,069 interest andtaxes ^(1) See supplemental break-out of equity income by unconsolidated affiliate in the table below.^(2) Excludes the noncontrolling interest portion of impairment andrestructuring charges (gains) of $(5,946) and $116 for the three months ended August 31, 2021 and 2020, respectively.

The following tables outlines our equity income (loss) by unconsolidated affiliate.

Three Months Ended August 31, 2021 2020 WAVE $ 25,671 $ 17,656 ClarkDietrich 17,322 4,896 Serviacero Worthington 9,349 1,309 ArtiFlex 1,208 (108 )Other (634 ) (119 )Total equity income $ 52,916 $ 23,634



Contacts:SONYAL.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

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