Worthington Enterprises Inc Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Moore - CJS Securities, Inc. - Analyst : Thank you. Good morning Andy, good morning, Joe. Thanks for taking the call.

Question: Daniel Moore - CJS Securities, Inc. - Analyst : I wanted to maybe start with where we finished off there at the tail end of the comments on the JVs, what can you tell us about demand and activity levels, both at WAVE in Clark feature and a forward looking basis, I know you don't quote backlog. So how would you describe the level of new business coming into the pipeline relative to say maybe six months ago or this time last year?

Question: Daniel Moore - CJS Securities, Inc. - Analyst : Very helpful. Pete, maybe switching gears, I still early days, obviously, but maybe just update us on progress in the direct assumed direct to consumer channel. Obviously, a key capability of Level five. Now you're bolting on tacked on halo. Some may know any tangible examples of product you're now offering or plan to offer DTC. that perhaps you didn't historically and just, you know, progress in general and that's a match. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 21, 2024 / 12:30PM, WOR.N - Q3 2024 Worthington Enterprises Inc Earnings Call

Question: Daniel Moore - CJS Securities, Inc. - Analyst : Helpful. Last one for me. I'll jump out on. I think you mentioned that puts a little bit of potential pull-forward in demand in the consumer side in from Q4 to Q3. Any details there? Or can you quantify that at all? Thanks again for the help and congrats on a really solid quarter.

Question: Daniel Moore - CJS Securities, Inc. - Analyst : Understood. Thank you.

Question: Susan Maklari - Goldman Sachs - Analyst : Thank you. Good morning, everyone.

Question: Susan Maklari - Goldman Sachs - Analyst : Good morning, Ito. I'd like to start with the price for a bit on. Can you just give us more color on what's driving that lower? Is it mix? Is it absolute declines in there? Just what's going on in there and how you're thinking about that going forward?

Question: Susan Maklari - Goldman Sachs - Analyst : Yes.

Question: Susan Maklari - Goldman Sachs - Analyst : Okay, right. And perhaps turning a bit to the outlook. And you mentioned on the potential for this pickup as we get into the spring and summer, maybe some lift in the R&R activity. I guess when you think about the macro backdrop and some of the more recent news and data points, just any thoughts on how that could come through to the business and how you're thinking about the setup more broadly there.

Question: Susan Maklari - Goldman Sachs - Analyst : Okay. That's helpful. And then just one one last one for me. It was exciting to see the Halo acquisition come through. Can you give us just an update on the overall M&A pipeline, how that's coming through and anything that, you know is of interest, perhaps there?

Question: Susan Maklari - Goldman Sachs - Analyst : Okay. All right. Well, that sounds great. Thanks for all the color and good luck with everything. Thank you.

Question: Kathryn Thompson - Thompson Research Group - Analyst : Good morning. This is actually Brian Barrows on for Kathryn. Thank you for taking my questions. Good morning, Brian, and a further on the GBS. I think the past few quarters has kind of seen the to fill in kind of opposite directions almost and probably not always the case, maybe more of a short-term blip. Just given what markets have been recently guess do you think that dynamic is kind of over going forward? Seems like maybe it is a little bit given your comments about our teacher kind of stabilizing from here, but just interested to hear your thoughts on how two may or may not be linked in momentum going forward?

Question: Brian McNamara - Canaccord Genuity LLC - Analyst : Good morning. Guys. Congrats on the results, Mona, and thank you buying more of I hate to put you on the spot, Joe, what I'm going to say I get a lot of questions about the earnings power of the business for maybe some folks new to the story kind of can you can you put up some guardrails in terms of how we should look at the business in terms of both the gross margin side and then how that flows into EBITDA margin if you wouldn't mind? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 21, 2024 / 12:30PM, WOR.N - Q3 2024 Worthington Enterprises Inc Earnings Call

Question: Brian McNamara - Canaccord Genuity LLC - Analyst : That's really helpful. Thanks and just one more for me. I think all my other questions have been answered already. I'm just curious relative to your Joe or Andy or both of you relative to your your own expectations heading into the separation. I'm curious, have you run into any surprises either good or bad in your first kind of three or so months as a separate entity Yes, you know.

Question: Brian McNamara - Canaccord Genuity LLC - Analyst : That's great. Thanks a lot. Thanks a lot, guys. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 21, 2024 / 12:30PM, WOR.N - Q3 2024 Worthington Enterprises Inc Earnings Call

Question: Kathryn Thompson - Thompson Research Group - Analyst : Katherine. I hope you appreciate that off to Brian for today. I had a quick follow-up on that again, but not earlier, but in the building products segment, I know you guys have called out mix kind of impacting the sales and overall, the volumes seem pretty good relative to the destocking going on that I think are only down 2%. You touched on it in the opening comments and some of the responses here. Just maybe further parse out what was maybe up or down across the different products in that category? You called out propane, you call it water. Anything else to specifically call out because it seems like there's maybe pretty good stuff going on there that might be masked by the propane destocking in the short.

Question: Kathryn Thompson - Thompson Research Group - Analyst : Thank you.