Worthington Industries, Inc. (NYSE:WOR) Q1 2021 Earnings Conference Call - Final Transcript

Sep 23, 2020 • 02:00 pm ET


Worthington Industries, Inc. (NYSE:WOR) Q1 2021 Earnings Conference Call - Final Transcript


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Good afternoon and welcome to the Worthington Industries' First Quarter Fiscal 2021 Earnings Conference Call. [Operator Instructions] This conference is being recorded at the request of the Worthington Industries. If anyone objects, you may disconnect at this time.

I'd now like to introduce Marcus Rogier, Treasurer and Investor Relations Officer. Mr. Rogier, you may begin.

Marcus A. Rogier

Thank you, Amy. Good afternoon, everyone and welcome to Worthington Industries' first quarter fiscal 2021 earnings call. On our call this afternoon, we have John McConnell, Worthington's Executive Chairman; Andy Rose, Worthington's President and Chief Executive Officer; and Joe Hayek, Worthington's Chief Financial Officer. Before we get started, I'd like to remind everyone that certain statements made today are forward-looking within the meaning of the 1995 Private Securities Litigation Reform Act. These statements are subject to risk and uncertainties that could cause actual results to differ from those suggested. We issued our earnings release earlier this morning. Please refer to it for more details on those factors that could cause actual results to differ materially. Today's call is being recorded and a replay will be made available later on our worthingtonindustries.com website.

At this point, I will turn the call over to John for some opening comments.

John P. McConnell

Thank you, Marcus. I'll be brief. I think we should just jump right into the quarter, so I will turn the call over to Mr. Hayek.

Joseph B. Hayek

Great. Thank you, John, and good afternoon, everybody. In Q1, we reported earnings of $11.22 per share versus a loss of $0.09 a share in the prior year quarter. There were several unique items that impacted the quarter, including the following: we recognized a net pre-tax gain of $747 million, or $10.74 per share on our investment in Nikola Corporation. During the quarter, we realized gains of $508 million, $488 million in cash from the sale of 11.5 million shares of Nikola, and $20 million from the donation of 500,000 shares. We still own just under -- just over 7 million shares, which generated a $288 million unrealized gain based on the quarter-end closing stock price of Nikola of $40.81. These remaining shares will be subject to future revaluations for as long as we own the stock.

Partially offsetting these gains was the recognition of $49 million of expenses reported in operating income, $29 million for the gain-related profit sharing and compensation expenses and $21 million for the donation of the Nikola shares to establish a charitable endowment within the Worthington Industries Foundation. We're very pleased to be able to share some of the gains we have realized on this investment with our employees and with our communities. This quarter, we incurred restructuring and impairment charges of $12 million or $0.16 per share, primarily related to the impairment of our North American Cryogenics assets as well as severance expenses. This compares to restructuring and impairment charges of $45 million or $0.65 per share in Q1 last year, most of which related to the write-down of our Engineered Cabs business.

The prior year quarter