Worthington Steel Files 10-Q for Period Ending November 30, 2023
Ticker: WS · Form: 10-Q · Filed: Jan 16, 2024 · CIK: 1968487
| Field | Detail |
|---|---|
| Company | Worthington Steel, Inc. (WS) |
| Form Type | 10-Q |
| Filed Date | Jan 16, 2024 |
| Risk Level | medium |
| Pages | 14 |
| Reading Time | 17 min |
| Sentiment | neutral |
Complexity: moderate
Sentiment: neutral
Topics: Worthington Steel, 10-Q, Financial Reporting, Hedging, Fair Value
TL;DR
<b>Worthington Steel, Inc. has filed its quarterly report (10-Q) for the period ending November 30, 2023, detailing financial instruments and operational data.</b>
AI Summary
Worthington Steel, Inc. (WS) filed a Quarterly Report (10-Q) with the SEC on January 16, 2024. Worthington Steel, Inc. filed a 10-Q for the period ending November 30, 2023. The filing includes data related to fair value measurements, commodity contracts, and various financial instruments. Specific dates mentioned include November 30, 2023, May 31, 2023, and June 30, 2023. The company is incorporated in Ohio (OH) and operates in the Steel Works, Blast Furnaces & Rolling & Finishing Mills sector. Key financial elements discussed include accumulated other comprehensive income, cash flow hedging, and related party transactions.
Why It Matters
For investors and stakeholders tracking Worthington Steel, Inc., this filing contains several important signals. This filing provides investors with an updated view of Worthington Steel's financial position and performance, including details on hedging activities and fair value measurements, which are crucial for understanding risk exposure. The report's focus on specific financial instruments and related party transactions offers insights into the company's financial strategies and potential interdependencies.
Risk Assessment
Risk Level: medium — Worthington Steel, Inc. shows moderate risk based on this filing. The filing contains numerous references to financial instruments, hedging activities, and fair value measurements, indicating a complex financial structure and potential exposure to market volatility.
Analyst Insight
Review the detailed breakdown of fair value measurements and hedging activities to assess the company's risk management strategies and their impact on financial performance.
Key Numbers
- 2023-11-30 — Period End Date (Conformed period of report)
- 2024-01-16 — Filing Date (As of date)
- 0531 — Fiscal Year End (Company fiscal year end)
- 3310 — SIC Code (Standard Industrial Classification)
Key Players & Entities
- Worthington Steel, Inc. (company) — Filer name
- 2023-11-30 (date) — Period of report
- 2024-01-16 (date) — Filing date
- OH (location) — State of incorporation
- 3310 (industry) — Standard Industrial Classification
- us-gaap:FairValueInputsLevel2Member (other) — Fair value input level
- ws:TWBTermLoanMember (financial_instrument) — Specific loan type
- ws:OneAutomotiveCustomerMember (company) — Customer concentration risk
Forward-Looking Statements
- Worthington Steel's future revenue will be highly sensitive to the performance and purchasing decisions of its largest automotive customer. (Worthington Steel, Inc.) — high confidence, target: 2024-11-30
FAQ
When did Worthington Steel, Inc. file this 10-Q?
Worthington Steel, Inc. filed this Quarterly Report (10-Q) with the SEC on January 16, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by Worthington Steel, Inc. (WS).
Where can I read the original 10-Q filing from Worthington Steel, Inc.?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by Worthington Steel, Inc..
What are the key takeaways from Worthington Steel, Inc.'s 10-Q?
Worthington Steel, Inc. filed this 10-Q on January 16, 2024. Key takeaways: Worthington Steel, Inc. filed a 10-Q for the period ending November 30, 2023.. The filing includes data related to fair value measurements, commodity contracts, and various financial instruments.. Specific dates mentioned include November 30, 2023, May 31, 2023, and June 30, 2023..
Is Worthington Steel, Inc. a risky investment based on this filing?
Based on this 10-Q, Worthington Steel, Inc. presents a moderate-risk profile. The filing contains numerous references to financial instruments, hedging activities, and fair value measurements, indicating a complex financial structure and potential exposure to market volatility.
What should investors do after reading Worthington Steel, Inc.'s 10-Q?
Review the detailed breakdown of fair value measurements and hedging activities to assess the company's risk management strategies and their impact on financial performance. The overall sentiment from this filing is neutral.
Risk Factors
- Product Concentration Risk [medium — financial]: The company faces risk due to sales revenue concentration with one automotive customer.
- Fair Value Measurements [medium — financial]: The filing details recurring and nonrecurring fair value measurements, indicating potential volatility in asset and liability valuations.
- Commodity Contracts [medium — financial]: Extensive use of commodity contracts, both designated as hedging instruments and non-designated, suggests exposure to commodity price fluctuations.
Key Dates
- 2023-11-30: Period End Date — End of the reporting quarter for the 10-Q filing.
- 2024-01-16: Filing Date — Date the 10-Q was officially submitted to the SEC.
Glossary
- us-gaap:FairValueMeasurementsRecurringMember
- Measurements of fair value that are required or permitted to be recognized or disclosed in the financial statements during the reporting period. (Indicates ongoing valuation of assets and liabilities at market prices, relevant for assessing financial health.)
Filing Stats: 4,167 words · 17 min read · ~14 pages · Grade level 9.3 · Accepted 2024-01-16 17:16:30
Filing Documents
- ws-20231130.htm (10-Q) — 2447KB
- ws-ex10_11.htm (EX-10.11) — 132KB
- ws-ex10_12.htm (EX-10.12) — 78KB
- ws-ex31_1.htm (EX-31.1) — 15KB
- ws-ex31_2.htm (EX-31.2) — 14KB
- ws-ex32_1.htm (EX-32.1) — 9KB
- ws-ex32_2.htm (EX-32.2) — 9KB
- 0000950170-24-004719.txt ( ) — 10935KB
- ws-20231130.xsd (EX-101.SCH) — 1364KB
- ws-20231130_htm.xml (XML) — 2335KB
Financial Information
Part I. Financial Information Item 1.
Financial Statements (Unaudited)
Financial Statements (Unaudited) Combined Balance Sheets – November 30, 2023 and May 31, 2023 1 Combined Statements of Earnings – Three Months and Six Months Ended November 30, 2023 and November 30, 2022 2 Combined Statements of Comprehensive Income – Three Months and Six Months Ended November 30, 2023 and November 30, 2022 3 Combined Statements of Cash Flows – Three Months and Six Months Ended November 30, 2023 and November 30, 2022 4 Condensed Notes to Combined Financial Statements 5 Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 32 Item 4.
Controls and Procedures
Controls and Procedures 32
Other Information
Part II. Other Information Item 1.
Legal Proceedings
Legal Proceedings 33 Item 1A.
Risk Factors
Risk Factors 33 Item 2. Unregistered Sales of Equity Securities, and Use of Proceeds 33 Item 3. Defaults Upon Senior Securities 33 Item 4. Mine Safety Disclosures 33 Item 5. Other Information 33 Item 6. Exhibits 33
Signatures
Signatures 36 i Table of Contents Safe Harbor Statement Selected statements contained in this Quarterly Report on Form 10-Q (this “Form 10-Q”), including, without limitation, in “PART I – Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations,” constitute “forward-looking statements” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”). Forward-looking statements reflect the Company’s current expectations, estimates or projections concerning future results or events. These statements are often identified by the use of forward-looking words or phrases such as “believe,” “expect,” “anticipate,” “may,” “could,” “should,” “would,” “intend,” “plan,” “will,” “likely,” “estimate,” “project,” “position,” “strategy,” “target,” “aim,” “seek,” “foresee,” or other similar words or phrases. These forward-looking statements include, without limitation, statements relating to: • future or expected cash positions, liquidity and ability to access financial markets and capital; • outlooks, strategies or business plans; • anticipated benefits of the separation of the Company from Worthington Enterprises, Inc. (the “Separation”); • expected financial and operational performance of, and future opportunities for, the Company following the Separation; • the tax treatment of the Separation transaction; • future or expected growth, growth potential, forward momentum, performance, competitive position, sales, volumes, cash flows, earnings, margins, balance sheet strengths, debt, financial condi
FINANC IAL INFORMATION
PART I. FINANC IAL INFORMATION
– Financ ial Statements
Item 1. – Financ ial Statements WORTHINGTON STEEL, INC. COMBINED B ALANCE SHEETS (In millions, except share amounts) (Unaudited) November 30, May 31, 2023 2023 Assets Current assets: Cash and cash equivalents $ 214.4 $ 32.7 Receivables, less allowances of $ 2.2 and $ 2.6 at November 30, 2023 and May 31, 2023, respectively 426.0 468.0 Inventories: Raw materials 160.1 173.9 Work in process 137.3 164.1 Finished products 76.4 76.8 Total inventories 373.8 414.8 Income taxes receivable 4.1 4.3 Assets held for sale 1.8 3.4 Prepaid expenses and other current assets 66.4 57.7 Total current assets 1,086.5 980.9 Investment in unconsolidated affiliate 127.4 114.6 Operating lease assets 72.1 75.3 Goodwill 79.2 78.6 Other intangible assets, net of accumulated amortization of $ 42.1 and $ 38.9 at November 30, 2023 and May 31, 2023, respectively 80.2 83.4 Deferred income taxes 6.3 6.3 Other assets 12.3 10.9 Property, plant and equipment: Land 38.7 37.6 Buildings and improvements 171.5 168.6 Machinery and equipment 868.6 847.5 Construction in progress 42.1 20.3 Total property, plant and equipment 1,120.9 1,074.0 Less: accumulated depreciation 687.5 659.6 Total property, plant and equipment, net 433.4 414.4 Total assets $ 1,897.4 $ 1,764.4 Liabilities and equity Current liabilities: Accounts payable $ 349.9 $ 402.2 Short-term borrowings 175.0 2.8 Accrued compensation, contributions to employee benefit plans and related taxes 29.9 31.9 Other accrued items 14.7 15.6 Current operating lease liabilities 5.8 5.9 Current maturities of long-term debt due to Worthington Enterprises, Inc. 20.0 20.0 Total current liabilities 595.3 478.4 Other liabilities 34.6 33.6 Noncurrent operating lease liabilities 69.0 71.7 Deferred income taxes, net 27.0 26.