Segment Data

12 Months Ended

May 31, 2024

Segment Reporting [Abstract]

Segment Data

Note P – Segment Data

Our operating segments reflect the way in which internally-reported financial information is regularly reviewed by the CODM to analyze performance, make decisions and allocate resources. Factors used to identify operating segments include the nature of the products provided by each business, the management reporting structure, similarity of economic characteristics and certain quantitative measures, as prescribed by authoritative accounting guidance. Our operations are organized under the following operating segments: Consumer Products and Building Products. Our operating segments correspond with our reportable segments as described further below.

In connection with the Separation, our CODM began evaluating segment operating performance on the basis of adjusted EBITDA from continuing operations, as described in the “Use of Non-GAAP Financial Measures” section preceding Part I, Item 1 of this Form 10-K. At the reportable segment level, adjusted EBITDA from continuing operations excludes public company and other governance-related costs. Effective December 1, 2023, we also realigned management responsibilities and the internal reporting of our liquified petroleum gas propane tank manufacturing facility in Westerville, Ohio, to fall under our Building Products segment (from Consumer Products). Previously reported results have been recast to reflect these changes.

Consumer Products: Our Consumer Products business serves retail customers and end consumers in the tools, outdoor living and celebrations categories under market-leading brands that include the following: Balloon Time®, Bernzomatic®, Coleman® (licensed), Garden-Weasel®, General®, Halo®, Hawkeye™, Level5®, Mag-Torch®, Pactool International®, and Worthington Pro Grade™. These include propane-filled cylinders for torches, camping stoves and other applications, handheld torches, helium-filled balloon kits, specialized hand tools and instruments, drywall tools and accessories and gas grills and pizza ovens sold primarily to mass merchandisers, retailers and distributors.

Building Products: Our Building Products business is a market-leading provider of pressurized containment solutions, providing critical components in essential end markets, such as heating, cooking, cooling and water, and, through our unconsolidated joint ventures, WAVE and ClarkDietrich, ceiling suspension systems and light gauge metal framing products. Our pressurized containment solutions include refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products which are generally sold to gas producers and distributors. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential, and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for residential and light commercial heating systems, barbeque grills and recreational vehicle equipment, industrial forklifts and commercial/residential cooking (the latter, generally outside North America). Well water tanks and expansion tanks are used primarily in the residential market with certain products also sold to commercial markets. Specialty products include a variety of fire suppression tanks, chemical tanks, and foam and adhesive tanks.

Unallocated Corporate and Other: Includes certain assets and liabilities (e.g. public debt) held at the corporate level as well as general corporate expenses that are not directly attributable to our business operations and are administrative in nature, such as public company and other governance-related costs that benefit the organization as a whole, have not been allocated to our operating segments and are held at the corporate level, including direct and incremental costs incurred in connection with the Separation but not attributed to discontinued operations.

Unallocated Corporate and Other also includes the activity of our former Sustainable Energy Solutions operating segment, on an historical basis, through May 29, 2024, when 51% of the nominal share capital was sold triggering the deconsolidation of corresponding net assets. Upon closing, this business, as historically operated, is no longer part of our management structure and therefore is not presented separately as a reportable segment.

The accounting policies of the reportable segments are described in “Note A – Summary of Significant Accounting Policies.” Inter-segment sales are not material.

The following tables present summarized financial information for our reportable segments for the past three fiscal years. A reconciliation from net earnings before income taxes from continuing operations to the non-GAAP financial measure of adjusted EBITDA from continuing operations is provided directly following the summarized information below.

	2024
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	495,259	$	618,973	$	1,114,232	$	131,471		$	1,245,703
Capital expenditures		14,447		20,945		35,392		12,029			47,421
Depreciation and amortization		16,510		23,806		40,316		8,347			48,663
Impairment of long-lived assets		-		772		772		32,203			32,975
Restructuring and other expense, net		-		80		80		29,247			29,327
Separation costs		-		-		-		12,705			12,705
Equity income		-		163,126		163,126		4,590			167,716
Adjusted EBITDA from continuing operations		69,598		210,128		279,726		(28,727	)		250,999

	2023
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	555,309	$	717,069	$	1,272,378	$	146,118		$	1,418,496
Capital expenditures		8,612		22,843		31,455		7,228			38,683
Depreciation and amortization		16,210		22,127		38,337		7,638			45,975
Impairment of long-lived assets		-		484		484		-			484
Restructuring and other expense (income), net		213		597		810		(1,177	)		(367	)
Separation costs		-		-		-		6,534			6,534
Equity income		-		166,427		166,427		(13,165	)		153,262
Adjusted EBITDA from continuing operations		97,370		222,197		319,567		(13,542	)		306,025

	2022
						Total			Unallocated
	Consumer		Building			Reportable			Corporate and
	Products		Products			Segments			Other			Total
Net sales	$	504,870	$	673,365		$	1,178,235		$	130,954		$	1,309,189
Capital expenditures		7,388		37,051			44,439			13,719			58,158
Depreciation and amortization		13,356		20,743			34,099			8,546			42,645
Restructuring and other income, net		-		(35	)		(35	)		(2,581	)		(2,616	)
Equity income		-		176,498			176,498			7,357			183,855
Adjusted EBITDA from continuing operations		109,282		238,636			347,918			(12,894	)		335,024

The following table presents a reconciliation from earnings before income taxes to adjusted EBITDA from continuing operations for the past three fiscal years:

	2024			2023			2022
Earnings before income taxes (EBIT)	$	74,007		$	160,286		$	210,649
Less: net loss attributable to noncontrolling interest		(263	)		-			-
Net earnings before income taxes attributable to controlling interest		74,270			160,286			210,649
Interest expense, net		1,587			18,298			23,852
EBIT (subtotal)		75,857			178,584			234,501
Corporate costs eliminated at Separation		19,343			41,479			48,020
Impairment of goodwill and long-lived assets		32,975			484			-
Restructuring and other expense (income), net		29,327			(367	)		(2,616	)
Separation costs		12,705			6,534			-
Non-cash charges in miscellaneous expense		19,180			4,774			-
Loss on investment in ArtiFlex		-			16,059			-
Loss on extinguishment of debt		1,534			-			-
Net gain on sale of assets in equity income		(2,780	)		(2,063	)		-
Pension settlement charge in equity income		1,040			-			-
Adjusted EBIT (subtotal)		189,181			245,484			279,905
Depreciation and amortization		48,663			45,975			42,645
Stock-based compensation		13,155			14,566			12,474
Adjusted EBITDA from continuing operations	$	250,999		$	306,025		$	335,024

Total assets for each of our reportable segments as of the end of the past two fiscal years were as follows:

	May 31,		May 31,
	2024		2023
Consumer Products	$	557,826	$	544,911
Building Products		672,723		706,169
Total reportable segments		1,230,549		1,251,080
Unallocated Corporate and Other		408,088		639,042
Total assets of continuing operations	$	1,638,637	$	1,890,122

The following table presents net sales by geographic region for the past three fiscal years:

	2024		2023		2022
North America	$	988,028	$	1,140,288	$	1,066,329
International		257,675		278,208		242,860
Total	$	1,245,703	$	1,418,496	$	1,309,189

The following table presents property, plant and equipment, net, by geographic region as of the end of the past two fiscal years:

	2024		2023
North America	$	207,772	$	191,356
International		19,434		65,059
Total	$	227,206	$	256,415