Segment Operations

6 Months Ended

Nov. 30, 2024

Segment Reporting [Abstract]

Segment Operations

Note M – Segment Operations

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. We have identified our Chief Executive Officer as our CODM. Our CODM evaluates segment performance on the basis of adjusted EBITDA from continuing operations, as described in the “Use of Non-GAAP Financial Measures and Definitions” section. 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 GAAP. Our operations are organized under two operating segments: Consumer Products and Building Products. Our former Sustainable Energy Solutions operating segment is presented within Unallocated Corporate and Other in periods prior to its deconsolidation on May 29, 2024. In periods subsequent to the deconsolidation transaction, our retained 49% interest is accounted for under the equity method of accounting, as discussed in “Note C – Investments in Unconsolidated Affiliates.” Unallocated Corporate and Other also 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.

The following tables present summarized financial information for our reportable segments and Unallocated Corporate and Other for the periods indicated. A reconciliation from the GAAP financial measure of earnings before income taxes to the non-GAAP financial measure of adjusted EBITDA from continuing operations is provided directly following the summarized information below.

	Three Months Ended November 30, 2024
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	116,748	$	157,298	$	274,046	$	-		$	274,046
Capital expenditures		5,789		4,348		10,137		5,024			15,161
Depreciation and amortization		4,296		6,496		10,792		1,135			11,927
Restructuring and other expense, net		-		514		514		2,106			2,620
Equity income		-		34,294		34,294		262			34,556
Adjusted EBITDA from continuing operations		15,484		47,185		62,669		(6,456	)		56,213

	Three Months Ended November 30, 2023
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	119,389	$	151,303	$	270,692	$	27,537		$	298,229
Capital expenditures		4,194		6,987		11,181		21,695			32,876
Depreciation and amortization		4,112		5,927		10,039		2,176			12,215
Restructuring and other expense, net		-		6		6		-			6
Separation costs		-		-		-		7,056			7,056
Equity income		-		35,176		35,176		3,492			38,668
Adjusted EBITDA from continuing operations		12,674		45,809		58,483		(3,439	)		55,044

	Six Months Ended November 30, 2024
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	234,343	$	297,011	$	531,354	$	-		$	531,354
Capital expenditures		10,733		8,057		18,790		6,000			24,790
Depreciation and amortization		8,595		12,867		21,462		2,295			23,757
Restructuring and other expense, net		-		803		803		2,975			3,778
Equity income		-		70,940		70,940		(892	)		70,048
Adjusted EBITDA from continuing operations		33,259		86,914		120,173		(15,524	)		104,649

	Six Months Ended November 30, 2023
					Total		Unallocated
	Consumer		Building		Reportable		Corporate and
	Products		Products		Segments		Other			Total
Net sales	$	236,742	$	317,231	$	553,973	$	56,174		$	610,147
Capital expenditures		5,727		12,257		17,984		44,190			62,174
Depreciation and amortization		8,104		11,925		20,029		4,261			24,290
Restructuring and other expense, net		-		6		6		-			6
Separation costs		-		-		-		9,466			9,466
Equity income		-		80,219		80,219		3,873			84,092
Adjusted EBITDA from continuing operations		26,889		105,442		132,331		(11,373	)		120,958

	Three Months Ended					Six Months Ended
	November 30,					November 30,
	2024		2023			2024		2023
Earnings before income taxes	$	37,109	$	24,543		$	67,899	$	60,333
Plus: Net loss attributable to noncontrolling interest		251		-			496		-
Net earnings before income taxes attributable to controlling interest		37,360		24,543			68,395		60,333
Interest expense, net		1,033		472			1,522		1,546
EBIT (1)		38,393		25,015			69,917		61,879
Corporate costs eliminated at Separation		-		9,671			-		19,343
Restructuring and other expense, net		2,620		6			3,778		6
Separation costs		-		7,056			-		9,466
Loss on extinguishment of debt		-		-			-		1,534
Gain on sale of assets in equity income		-		(2,780	)		-		(2,780	)
Adjusted EBIT (1)		41,013		38,968			73,695		89,448
Depreciation and amortization		11,927		12,215			23,757		24,290
Stock-based compensation (2)		3,273		3,861			7,197		7,220
Adjusted EBITDA from continuing operations	$	56,213	$	55,044		$	104,649	$	120,958

(1)EBIT and adjusted EBIT are not used by management to evaluate our performance, engage in financial and operational planning, or to determine incentive compensation. Instead, they are included as subtotals in the reconciliation of earnings before income taxes to adjusted EBITDA from continuing operations, which management uses to assess operating performance.

(2)Excludes $2,665 of stock-based compensation reported in restructuring and other expense, net in our consolidated statement of earnings for the three months ended November 30, 2024 related to the accelerated vesting of certain outstanding equity awards upon retirement of our former CEO effective, November 1, 2024.

Total assets for each of our reportable segments at the dates indicated were as follows:

	November 30,		May 31,
	2024		2024
Consumer Products	$	574,568	$	557,826
Building Products		764,911		672,723
Total reportable segments		1,339,479		1,230,549
Unallocated Corporate and Other		317,538		408,088
Total assets of continuing operations	$	1,657,017	$	1,638,637