Worthington Industries’ debt is down at $629 million for fiscal Q2

By Lisa Kerner

Charlotte, N.C., Dec. 17 – Worthington Industries, Inc. ended its fiscal 2016 second quarter on Nov. 30 with cash from operations of $6 million, according to chief financial officer Andy Rose.

“We spent $22 million on capital projects, distributed $12 million in dividends and repurchased 1.5 million shares for $44 million at an average price of $29.26 during the quarter,” Rose said during the company’s earnings call on Thursday.

Worthington ended the quarter with consolidated cash of $27 million and $550 million available under its revolving credit facility.

Debt totaled $629.4 million, down $41.3 million from May 31, due to lower short-term borrowings, according to the earnings release.

Rose said overall, the company was pleased with the quarter.

Worthington continues to generate solid earnings and free cash flow “despite a few very difficult end markets,” Rose said.

Financial highlights

Chairman and chief executive officer John McConnell said the company had “a solid performance” despite the market weakness.

The company’s net sales were down 19.7% year over year at $699.8 million.

Second-quarter net earnings were $23.2 million, or $0.36 per diluted share, compared to net earnings of $29.5 million, or $0.43 per diluted share, for the prior-year period.

Operating income was down $21.2 million year over year at $12 million.

Lower debt levels resulted in decreased interest expense of $7.8 million, compared to $9.7 million a year ago.

Worthington is a Columbus, Ohio-based metal processing company.

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