To further assist in the analysis of results for the periods presented, the following information for the three-month periods ended November 30, 2024, and November 30, 2023, has been provided along with a reconciliation of net earnings attributable to controlling interest (the most comparable GAAP financial measure) to pro forma adjusted EBIT. Pro forma adjusted EBIT is a non-GAAP financial measure that management believes includes incremental and on-going impacts to the Company's operating results as a stand-alone public company resulting from the Separation from the Former Parent. The pro forma financial information assumes the Separation occurred on June 1, 2022, the first day of the Company's 2023 fiscal year.
The pro forma financial information has been prepared based upon the best available information and management estimates and is subject to assumptions and adjustments described in the accompanying footnotes. It is not intended to be a complete presentation of the Company's financial position or results of operations had the Separation occurred as of and for the periods indicated. In addition, the pro forma financial information is being provided for informational purposes only, and is not necessarily indicative of the Company's future results of operations or financial condition had the Separation and related transactions been completed on the dates assumed. Management believes these assumptions and estimates are reasonable, given the information available on the date of this release.
There were no incremental pro forma adjustments made for the three and six months ended November 30, 2024, given this period included the actual results of operating as a stand-alone public company. For the three and six months ended November 30, 2023, the adjustments included in the information below represent the adjustments for the period prior to the Separation.
Three Months Ended
November 30,
------------------------
2024 2023
------------ ----------
Net earnings (loss) attributable to
controlling interest $ 12.8 $ (6.0)
Interest expense, net 2.1 0.2
Income tax expense (benefit) 3.6 (2.5)
------- ------
EBIT 18.5 (8.3)
Separation costs - 14.9
Pension settlement gain (2.7) -
Gain on land sale (1.5) -
------- ------
Adjusted EBIT 14.3 6.6
Pro Forma Adjustments:
Incremental steel supply agreement margin(1) - 1.0
Incremental stand-alone corporate costs(2) - (4.1)
------- ------
Total Pro Forma Adjustments - (3.1)
------- ------
Pro Forma Adjusted EBIT $ 14.3 $ 3.5
======= ======
Six Months Ended
November 30,
----------------------
2024 2023
----------- ---------
Net earnings attributable to controlling
interest $ 41.2 $ 52.5
Interest expense, net 4.7 0.7
Income tax expense 7.6 14.5
------ -----
EBIT 53.5 67.7
Impairment of long-lived assets(3) - 0.9
Separation costs - 18.5
Tax indemnification adjustment 4.4 -
Pension settlement gain (2.7) -
Gain on land sale (1.5) -
------ -----
Adjusted EBIT 53.7 87.1
Pro Forma Adjustments:
Incremental steel supply agreement margin(1) - 1.9
Incremental stand-alone corporate costs(2) - (8.5)
------ -----
Total Pro Forma Adjustments - (6.6)
------ -----
Pro Forma Adjusted EBIT $ 53.7 $ 80.5
====== =====
_________________________________________
(1) Reflects the incremental margin on sales to the Former Parent under
the steel supply agreement between the Company and the Former
Parent.
(2) Includes an increase in SG&A expense for the three and six months
ended November 30, 2023, to capture the effects of recurring and
ongoing costs required to operate the Company's stand-alone corporate
functions as well as public company costs, offset by lower corporate
profit sharing and bonus expense post-separation than what was
allocated to the Company in the combined financial statements due to
the employee matters agreement with the Former Parent.
(3) Excludes the noncontrolling interest portion of impairment of
long-lived assets of $0.5 million in the prior year period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241217611611/en/
CONTACT: Melissa Dykstra
Vice President
Corporate Communications and Investor Relations
Phone: 614-840-4144
Melissa.Dykstra@worthingtonsteel.com
(END) Dow Jones Newswires
December 18, 2024 16:10 ET (21:10 GMT)
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