FORT WAYNE, Ind., Oct. 17, 2012 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter net income of $12.8 million, or $0.06 per diluted share, on net sales of $1.7 billion. By comparison, prior year third quarter net income was $43.3 million, or $0.19 per diluted share, on net sales of $2.0 billion, and sequential second quarter 2012 net income was $44.5 million, or $0.20 per diluted share, on net sales of $1.9 billion. In the nine months ended September 30, 2012 net income was $103.0 million, or $0.47 per diluted share, on net sales of $5.6 billion. By comparison, in the nine months ended September 30, 2011 net income was $247.9 million, or $1.08 per diluted share, on net sales of $6.1 billion.
A significant portion of the decrease in earnings from the prior quarter was attributable to the following unique items announced on September 11, 2012:
- The incurrence of non-operating charges related to the company's third quarter refinancing activities of $26.3 million, or $0.07 per diluted share, which were primarily associated with prepayment fees. These transactions, along with the resulting repayment of $170 million of debt with available cash, not only extended the company's overall debt maturity profile, but should also provide an estimated interest savings of approximately $20 million in 2013.
- The incurrence of non-cash impairment charges of $7.9 million, or $0.02 per diluted share, related to the intended termination of two small joint venture entities, which were not aligned with the company's long term strategic focus.
Excluding these charges, the company's adjusted third quarter 2012 results would have been $0.15 per diluted share.
"Relative to overall market demand, our operating performance was commendable for the third quarter," said Chief Executive Officer Mark Millett. "The U.S. market in general remains tepid, as uncertainty surrounding the strength of Europe, growth in China, and the near-term U.S. economic and political environment continues to weigh heavily on customers' purchasing decisions. Aside from our fabrication operations, this reluctance in customer buying resulted in reduced selling volumes across our major operating platforms.
"Compared to the second quarter, operating income from our steel platform decreased $30 million," stated Millett, "primarily caused by reduced volumes, most notably within the special-bar-quality arena. Earlier customer estimates of robust growth have not been fully realized during the year, resulting in excess special-bar-quality inventory build throughout the customer supply chain. Inventory realignment seems to have begun later in the second quarter, and could continue through the remainder of 2012. However, we believe there is steady underlying demand that will support volumes as the destocking subsides.
"Within our metals recycling platform, despite a challenging environment that resulted in decreased volumes," continued Millett, "ferrous operating margins improved significantly, as metal spreads expanded 23 percent and initiatives to reduce operating expenses were achieved, resulting in operating income of $16.6 million in the third quarter, compared to $5.1 million in the second quarter of this year. The ferrous scrap market continues to be oversupplied, as the export market and U.S. steel mill utilization rates have moderated. However, we believe an inflection point has been reached and ferrous scrap pricing is likely near a bottom."
Third Quarter Review
The company's steel operations third quarter margins and operating income declined in comparison to second quarter 2012. Operating income from the company's steel operations was $109.2 million for the third quarter 2012, a decrease of $29.8 million as compared to the second quarter 2012. The average selling price per ton shipped decreased $45 per ton to $809, and the average ferrous scrap cost per ton melted decreased $44. As the combined steel metal spread was generally consistent quarter over quarter, reduced profitability was largely a function of decreased volume and product mix changes. Operating income attributable to the company's long product operations declined 32 percent, while declining 11 percent for the company's sheet operations. The most notable volume decrease occurred within the company's Engineered Bar Products Division, as shipments sequentially declined 32 percent based on customer inventory realignment.
Despite lower volumes and selling values in the company's metals recycling business, ferrous metal spreads expanded 23 percent in the third quarter, as compared to second quarter 2012. Operating income for OmniSource increased $11.5 million sequentially to $16.6 million for the third quarter 2012 as compared to $5.1 million in the prior quarter.
In spite of continued non-residential construction market weakness, the company's fabrication operations reported increased positive quarterly operating income, based on pricing improvement, increased volumes, and better associated manpower utilization.
The impact of losses from the company's Minnesota operations for third quarter 2012 consolidated net income was $11 million (net of tax), or approximately $0.05 per diluted share, unchanged from the impact for the second quarter 2012. As previously indicated, during periods of time between June and August of this year, higher operating rates at the company's iron nugget facility were achieved for extended periods of time, which provided the opportunity to identify a number of key process optimization options necessary to increase both productivity and product quality. Beginning mid-September, the company proceeded with a six week outage of the nugget facility in order to lay the groundwork necessary for the implementation of the improvements. The company expects to recommence operations in November, with final equipment installation expected during the first half of 2013, at an estimated investment of $25 million.
The company's iron concentrate facility commenced operations late September and supplied its first shipment of low-cost iron concentrate to the nugget facility just prior to the end of the third quarter. This is a pivotal achievement toward lowering the eventual cost structure of the company's iron nuggets. As previously discussed, higher priced third-party iron concentrate remains in inventory for use through the remainder of the year.
The company's liquidity position remains strong with $1.4 billion in unrestricted cash and available funding under the revolving credit facility at September 30, 2012. The decrease in liquidity from June 30, 2012 of $144 million was due to the company's refinancing initiative which reduced overall debt by $170 million. The company's debt to equity capitalization rate was 47.5 percent as of September 30, 2012, or 2 percent lower than the end of the second quarter 2012.
2011 Comparison
A general overall decline in volume for the nine months ended September 30, 2012 resulted in net sales of $5.6 billion, or 9 percent, less than those achieved for the same period in 2011. Operating income decreased 41 percent, as margins decreased within the company's flat roll steel and special bar quality operations. The average selling price per ton shipped for the company's steel operations in the nine months ended September 30, 2012 was $847, a decrease of $64 per ton compared to the same period last year. The average ferrous scrap cost per ton melted was $22 lower than the comparative period for 2011. Charges related to the refinancing activities transacted in the first and third quarters of 2012, resulted in year-to-date decreased pretax earnings of $40 million, or approximately $0.11 per diluted share.
Outlook
"Looking ahead," Millett said, "we have seen softening in agriculture, transportation and certain areas within energy, related to natural gas exploration; however, automotive and manufacturing appears strong and residential construction has shown incremental improvement, as housing starts and rents have improved in face of declining inventories. We believe volumes could continue to be challenged in the fourth quarter, as fluctuations in immediate customer needs and hesitancy for customers to carry inventory persists. Ferrous scrap pricing fell further in October, which could challenge our metals recycling operations, while benefiting our steel operations early in the fourth quarter. While U.S. and world economies remain anemic, we remain uniquely equipped to capitalize on the opportunities ahead, supported by our superior low-cost, highly-variable cost structure, our diversified, value-added product mix, our vertical integration and our exceptional team of employees."
Summary Operating Information
The following tables highlight operating results for each of the company's primary operating platforms. References to operating income in the following paragraphs exclude profit-sharing expenses and amortization pertaining to intangible assets. Dollar amounts are in thousands, excluding per ton data.
Steel Operations
This segment includes five electric-arc-furnace steel mills and related steel finishing and processing facilities, including The Techs. The company's steel operations produce flat-rolled steel, structural steel, merchant bars, special-bar-quality steel, rebar, rail, and specialty shapes.
Third Quarter |
Year To Date |
Sequential |
||||||||
2012 |
2011 |
2012 |
2011 |
2Q 2012 |
||||||
Total Sales |
$1,120,571 |
$1,298,339 |
$3,655,802 |
$3,926,476 |
$1,280,767 |
|||||
External Sales |
1,051,349 |
1,228,010 |
3,445,369 |
3,690,349 |
1,207,300 |
|||||
Operating Income |
109,215 |
138,626 |
387,983 |
550,907 |
139,028 |
|||||
Total Shipments (tons) |
1,405,021 |
1,470,339 |
4,375,723 |
4,376,732 |
1,520,579 |
|||||
Average External Sales Price Per Ton |
$809 |
$897 |
$847 |
$911 |
$854 |
|||||
Average Ferrous Scrap Cost Per Ton |
$352 |
$419 |
$389 |
$411 |
$396 |
Metals Recycling and Ferrous Resources
This segment principally includes the company's metals recycling operations (OmniSource Corporation), a liquid pig iron production facility (Iron Dynamics), and the company's Minnesota operations, which currently primarily includes an iron nugget manufacturing facility (Mesabi Nugget, which is 81 percent company-owned).
Metals Recycling & Ferrous Resources |
Third Quarter |
Year To Date |
Sequential |
|||||||
2012 |
2011 |
2012 |
2011 |
2Q 2012 |
||||||
Total Sales |
$ 821,357 |
$1,060,545 |
$ 2,860,789 |
$3,249,089 |
$ 927,092 |
|||||
External Sales |
522,231 |
708,038 |
1,812,340 |
2,175,882 |
590,509 |
|||||
Operating Income (Loss) |
(9,461) |
3,693 |
(12,197) |
61,231 |
(13,135) |
|||||
Metals Recycling |
Third Quarter |
Year To Date |
Sequential |
|||||||
2012 |
2011 |
2012 |
2011 |
2Q 2012 |
||||||
Total Sales |
$ 766,102 |
$1,006,747 |
$2,700,006 |
$3,084,212 |
$ 876,731 |
|||||
External Sales |
519,101 |
708,038 |
1,808,165 |
2,175,882 |
589,722 |
|||||
Operating Income |
16,566 |
11,439 |
46,655 |
78,828 |
5,085 |
|||||
Unrealized Hedging Gains (Losses) |
(9,315) |
1,749 |
(6,232) |
6,427 |
1,080 |
|||||
Ferrous Shipments (gross tons) |
1,339,853 |
1,483,122 |
4,408,915 |
4,565,141 |
1,486,222 |
|||||
% Shipments to Company Steel Mills |
43% |
44% |
45% |
43% |
45% |
|||||
Nonferrous Shipments (pounds 000's) |
249,685 |
269,753 |
800,253 |
811,511 |
258,932 |
Steel Fabrication Operations
Steel fabrication operations include New Millennium Building Systems, which fabricates steel joists, trusses, and decking used in the construction of non-residential buildings.
Third Quarter |
Year To Date |
Sequential |
||||||||
2012 |
2011 |
2012 |
2011 |
2Q 2012 |
||||||
Total Sales |
$ 102,442 |
$ 83,110 |
$ 273,105 |
$ 197,724 |
$ 95,767 |
|||||
Operating Income (Loss) |
3,141 |
(246) |
666 |
(4,764) |
193 |
|||||
Total Shipments (tons) |
80,176 |
64,589 |
218,291 |
156,410 |
77,932 |
|||||
Average External Sales Price Per Ton |
$1,278 |
$1,287 |
$1,251 |
$1,265 |
$1,229 |
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with annual sales of $8.0 billion in 2011, over 6,500 employees, and manufacturing facilities primarily located throughout the United States (including five steel mills, six steel processing facilities, two iron production facilities, over 70 metals recycling locations and six steel fabrication plants).
Forward-Looking Statement
This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of a prolonged or deepening recession on industrial demand; (2) changes in economic conditions, either generally or in any of the steel or scrap-consuming sectors which affect demand for our products, including the strength of the non-residential and residential construction, automotive, appliance, and other steel-consuming industries; (3) fluctuations in the cost of key raw materials (including steel scrap, iron units, and energy costs) and our ability to pass-on any cost increases; (4) the impact of domestic and foreign import price competition; (5) risks and uncertainties involving product and/or technology development; and (6) occurrences of unexpected plant outages or equipment failures.
More specifically, we refer you to SDI's more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com.
Conference Call and Webcast
On Thursday, October 18, 2012, at 10:00 a.m. Eastern time, Steel Dynamics will host a conference call with investors and analysts to discuss the company's third quarter operating and financial results. We invite you to listen to the live audiocast of the conference call accessible from our website (http://steeldynamics.com) , or via telephone (the conference call number may also be obtained on our website). A replay of the discussion will be available on our website until midnight on November 16, 2012. A podcast of the event will also be available and can be downloaded from our website.
Steel Dynamics, Inc. |
||||||||||
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||||
(in thousands, except per share data) |
||||||||||
Three Months Ended |
Nine Months Ended |
Three Months Ended |
||||||||
September 30, |
September 30, |
June 30, |
||||||||
2012 |
2011 |
2012 |
2011 |
2012 |
||||||
Net sales |
$ |
1,693,390 |
$ |
2,043,455 |
$ |
5,585,233 |
$ |
6,139,155 |
$ |
1,909,803 |
Costs of goods sold |
1,536,989 |
1,844,212 |
5,045,432 |
5,367,772 |
1,727,667 |
|||||
Gross profit |
156,401 |
199,243 |
539,801 |
771,383 |
182,136 |
|||||
Selling, general and administrative expenses |
62,984 |
72,876 |
188,603 |
201,648 |
61,235 |
|||||
Profit sharing |
3,954 |
7,428 |
20,237 |
37,085 |
8,211 |
|||||
Amortization of intangible assets |
8,848 |
10,154 |
26,831 |
30,320 |
8,991 |
|||||
Impairment charges |
7,894 |
- |
7,894 |
- |
- |
|||||
Operating income |
72,721 |
108,785 |
296,236 |
502,330 |
103,699 |
|||||
Interest expense, net of capitalized interest |
41,490 |
44,702 |
123,708 |
132,860 |
41,106 |
|||||
Other expense (income), net |
24,010 |
(3,523) |
32,366 |
(13,835) |
(1,892) |
|||||
Income before income taxes |
7,221 |
67,606 |
140,162 |
383,305 |
64,485 |
|||||
Income taxes |
1,116 |
27,749 |
52,975 |
143,392 |
25,180 |
|||||
Net income |
6,105 |
39,857 |
87,187 |
239,913 |
39,305 |
|||||
Net loss attributable to noncontrolling interests |
6,728 |
3,447 |
15,793 |
8,004 |
5,167 |
|||||
Net income attributable to Steel Dynamics, Inc. |
$ |
12,833 |
$ |
43,304 |
$ |
102,980 |
$ |
247,917 |
$ |
44,472 |
Basic earnings per share attributable to Steel Dynamics, Inc. stockholders |
$ |
.06 |
$ |
.20 |
$ |
.47 |
$ |
1.14 |
$ |
.20 |
Weighted average common shares outstanding |
219,191 |
218,674 |
219,097 |
218,389 |
219,104 |
|||||
Diluted earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive |
$ |
.06 |
$ |
.19 |
$ |
.47 |
$ |
1.08 |
$ |
.20 |
Weighted average common shares and equivalents outstanding (Note 1) |
220,044 |
235,759 |
236,536 |
236,083 |
236,208 |
|||||
Dividends declared per share |
$ |
.10 |
$ |
.10 |
$ |
.30 |
$ |
.30 |
$ |
.10 |
(Note 1) Excludes the impact of the 5.125% convertible senior notes from net income (numerator) and share equivalents outstanding (denominator) for the three months ended September 30, 2012, as the impact to diluted earnings per share is anti-dilutive. |
Steel Dynamics, Inc. |
||||||||||||||
Quarter Ended |
Nine Months Ended |
Quarter Ended |
Quarter Ended |
|||||||||||
September 30, |
September 30, |
March 31, |
June 30, |
|||||||||||
2012 |
2011 |
2012 |
2011 |
2012 |
2012 |
|||||||||
Steel Operations* |
||||||||||||||
Shipments (tons) |
||||||||||||||
Flat Roll Division |
638,776 |
701,212 |
2,004,225 |
2,091,505 |
658,505 |
706,944 |
||||||||
Structural and Rail Division |
||||||||||||||
Structural |
220,829 |
193,197 |
662,235 |
531,934 |
227,059 |
214,347 |
||||||||
Rail |
34,704 |
31,317 |
106,828 |
96,609 |
33,947 |
38,177 |
||||||||
Engineered Bar Products Division |
113,327 |
160,649 |
437,024 |
463,944 |
157,489 |
166,208 |
||||||||
Roanoke Bar Division |
152,922 |
141,060 |
453,228 |
415,271 |
151,296 |
149,010 |
||||||||
Steel of West Virginia |
76,481 |
76,487 |
228,149 |
223,425 |
77,212 |
74,456 |
||||||||
The Techs |
167,982 |
166,417 |
484,034 |
554,044 |
144,615 |
171,437 |
||||||||
Total |
1,405,021 |
1,470,339 |
4,375,723 |
4,376,732 |
1,450,123 |
1,520,579 |
||||||||
Intra-company |
(105,789) |
(101,117) |
(306,840) |
(326,500) |
(94,176) |
(106,875) |
||||||||
External |
1,299,232 |
1,369,222 |
4,068,883 |
4,050,232 |
1,355,947 |
1,413,704 |
||||||||
Production, excluding The Techs (tons) |
1,257,515 |
1,305,711 |
3,937,623 |
3,911,435 |
1,351,818 |
1,328,290 |
||||||||
Net sales |
||||||||||||||
Total |
$ 1,120,571 |
$ 1,298,339 |
$ 3,655,802 |
$ 3,926,476 |
$ 1,254,464 |
$ 1,280,767 |
||||||||
Intra-company |
(69,222) |
(70,329) |
(210,433) |
(236,127) |
(67,744) |
(73,467) |
||||||||
External |
$ 1,051,349 |
$ 1,228,010 |
$ 3,445,369 |
$ 3,690,349 |
$ 1,186,720 |
$ 1,207,300 |
||||||||
Operating income before amortization of intangibles |
$ 109,215 |
$ 138,626 |
$ 387,983 |
$ 550,907 |
$ 139,740 |
$ 139,028 |
||||||||
Amortization of intangibles |
(2,288) |
(2,432) |
(7,151) |
(7,790) |
(2,432) |
(2,431) |
||||||||
Operating income (Note 1) |
$ 106,927 |
$ 136,194 |
$ 380,832 |
$ 543,117 |
$ 137,308 |
$ 136,597 |
||||||||
Metals Recycling and Ferrous Resources** |
||||||||||||||
OmniSource |
||||||||||||||
Ferrous metals shipments (gross tons) |
||||||||||||||
Total |
1,339,853 |
1,483,122 |
4,408,915 |
4,565,141 |
1,582,840 |
1,486,222 |
||||||||
Intra-company |
(582,942) |
(648,949) |
(2,013,377) |
(1,979,215) |
(763,767) |
(666,668) |
||||||||
External |
756,911 |
834,173 |
2,395,538 |
2,585,926 |
819,073 |
819,554 |
||||||||
Non-ferrous metals shipments (thousands of pounds) |
||||||||||||||
Total |
249,685 |
269,753 |
800,253 |
811,511 |
291,636 |
258,932 |
||||||||
Intra-company |
(8,476) |
(1,804) |
(15,032) |
(6,043) |
(1,958) |
(4,598) |
||||||||
External |
241,209 |
267,949 |
785,221 |
805,468 |
289,678 |
254,334 |
||||||||
Mesabi Nugget shipments (metric tons) - Intra-company |
52,082 |
32,666 |
132,152 |
106,698 |
46,230 |
33,840 |
||||||||
Iron Dynamics (metric tons) - Intra-company |
53,548 |
61,034 |
169,279 |
182,031 |
56,628 |
59,103 |
||||||||
Net sales |
||||||||||||||
Total |
$ 821,357 |
$ 1,060,545 |
$ 2,860,789 |
$ 3,249,089 |
$ 1,112,340 |
$ 927,092 |
||||||||
Intra-company |
(299,126) |
(352,507) |
(1,048,449) |
(1,073,207) |
(412,740) |
(336,583) |
||||||||
External |
$ 522,231 |
$ 708,038 |
$ 1,812,340 |
$ 2,175,882 |
$ 699,600 |
$ 590,509 |
||||||||
Operating income (loss) before amortization of intangibles |
$ (9,461) |
$ 3,693 |
$ (12,197) |
$ 61,231 |
$ 10,399 |
$ (13,135) |
||||||||
Amortization of intangibles |
(6,236) |
(7,081) |
(18,708) |
(21,244) |
(6,236) |
(6,236) |
||||||||
Operating income (loss) (Note 1) |
$ (15,697) |
$ (3,388) |
$ (30,905) |
$ 39,987 |
$ 4,163 |
$ (19,371) |
||||||||
Steel Fabrication*** |
||||||||||||||
Shipments (tons) |
||||||||||||||
Total |
80,176 |
64,589 |
218,291 |
156,410 |
60,183 |
77,932 |
||||||||
Intra-company |
(53) |
(12) |
(55) |
(621) |
(2) |
- |
||||||||
External |
80,123 |
64,577 |
218,236 |
155,789 |
60,181 |
77,932 |
||||||||
Net sales |
||||||||||||||
Total |
$ 102,442 |
$ 83,110 |
$ 273,105 |
$ 197,724 |
$ 74,896 |
$ 95,767 |
||||||||
Intra-company |
(41) |
(16) |
(45) |
(612) |
(4) |
- |
||||||||
External |
$ 102,401 |
$ 83,094 |
$ 273,060 |
$ 197,112 |
$ 74,892 |
$ 95,767 |
||||||||
Operating income (loss) (Note 1) |
$ 3,141 |
$ (246) |
$ 666 |
$ (4,764) |
$ (2,668) |
$ 193 |
||||||||
* |
Steel Operations include the company's five steelmaking divisions and The Techs three galvanizing plants. |
|||||||||||||
** |
Metals Recycling and Ferrous Resources Operations include OmniSource; Iron Dynamics (all shipments are internal); and Mesabi Nugget (all shipments have been internal). |
|||||||||||||
*** |
Steel Fabrication Operations include the company's joist and deck fabrication operations. |
|||||||||||||
(Note 1) Segment operating income (loss) excludes profit sharing expense. |
||||||||||||||
Steel Dynamics, Inc. |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
(in thousands) |
||||||||||
September 30, |
December 31, |
|||||||||
(unaudited) |
||||||||||
Assets |
||||||||||
Current assets |
||||||||||
Cash and equivalents |
$ |
287,120 |
$ |
390,761 |
||||||
Investments in short-term commercial paper |
- |
84,830 |
||||||||
Accounts receivable, net |
712,750 |
722,791 |
||||||||
Inventories |
1,209,079 |
1,199,584 |
||||||||
Deferred income taxes |
28,229 |
25,341 |
||||||||
Income taxes receivable |
939 |
16,722 |
||||||||
Other current assets |
24,107 |
15,229 |
||||||||
Total current assets |
2,262,224 |
2,455,258 |
||||||||
Property, plant and equipment, net |
2,213,703 |
2,193,745 |
||||||||
Restricted cash |
27,436 |
26,528 |
||||||||
Intangible assets, net |
425,034 |
450,893 |
||||||||
Goodwill |
740,192 |
745,066 |
||||||||
Other assets |
106,927 |
107,736 |
||||||||
Total assets |
$ |
5,775,516 |
$ |
5,979,226 |
||||||
Liabilities and Equity |
||||||||||
Current liabilities |
||||||||||
Accounts payable |
$ |
377,213 |
$ |
420,824 |
||||||
Income taxes payable |
12,014 |
10,880 |
||||||||
Accrued expenses |
166,845 |
185,964 |
||||||||
Accrued profit sharing |
19,213 |
38,671 |
||||||||
Current maturities of long-term debt |
30,114 |
444,078 |
||||||||
Total current liabilities |
605,399 |
1,100,417 |
||||||||
Long-term debt |
||||||||||
Term note |
250,938 |
- |
||||||||
7 3/8% senior notes, due 2012 |
- |
261,250 |
||||||||
5.125% convertible senior notes, due 2014 |
287,496 |
287,500 |
||||||||
6 ¾% senior notes, due 2015 |
500,000 |
500,000 |
||||||||
7 ¾% senior notes, due 2016 |
- |
500,000 |
||||||||
6 1/8% senior notes, due 2019 |
400,000 |
- |
||||||||
7 5/8% senior notes, due 2020 |
350,000 |
350,000 |
||||||||
6 3/8% senior notes, due 2022 |
350,000 |
- |
||||||||
Other long-term debt |
35,491 |
37,272 |
||||||||
Total long-term debt |
2,173,925 |
1,936,022 |
||||||||
Deferred income taxes |
544,800 |
489,915 |
||||||||
Other liabilities |
18,564 |
82,278 |
||||||||
Commitments and contingencies
|
||||||||||
Redeemable noncontrolling interests |
93,774 |
70,694 |
||||||||
Equity |
||||||||||
Common stock |
636 |
636 |
||||||||
Treasury stock, at cost |
(720,479) |
(722,653) |
||||||||
Additional paid-in capital |
1,033,857 |
1,026,157 |
||||||||
Retained earnings |
2,049,011 |
2,011,801 |
||||||||
Total Steel Dynamics, Inc. equity |
2,363,025 |
2,315,941 |
||||||||
Noncontrolling interests |
(23,971) |
(16,041) |
||||||||
Total equity |
2,339,054 |
2,299,900 |
||||||||
Total liabilities and equity |
$ |
5,775,516 |
$ |
5,979,226 |
||||||
Steel Dynamics, Inc. |
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||||
(in thousands) |
||||||||
Three Months Ended |
Nine Months Ended |
|||||||
September 30, |
September 30, |
|||||||
2012 |
2011 |
2012 |
2011 |
|||||
Operating activities: |
||||||||
Net income |
$ |
6,105 |
$ |
39,857 |
$ |
87,187 |
$ |
239,913 |
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
58,953 |
55,962 |
170,027 |
166,965 |
||||
Equity-based compensation |
738 |
3,833 |
9,463 |
11,355 |
||||
Deferred income taxes |
34,633 |
7,118 |
54,464 |
29,081 |
||||
Impairment charges |
7,894 |
- |
7,894 |
- |
||||
Changes in certain assets and liabilities: |
||||||||
Accounts receivable |
2,690 |
33,533 |
15,604 |
(193,679) |
||||
Inventories |
43,005 |
36,346 |
6,702 |
(44,787) |
||||
Accounts payable |
6,920 |
(4,375) |
(19,015) |
92,550 |
||||
Income taxes receivable/payable |
25,993 |
(5,911) |
16,917 |
22,409 |
||||
Other assets and liabilities |
(69,565) |
56,100 |
(109,857) |
68,590 |
||||
Net cash provided by operating activities |
117,366 |
222,463 |
239,386 |
392,397 |
||||
Investing activities: |
||||||||
Purchase of property, plant and equipment |
(58,342) |
(38,126) |
(158,686) |
(91,795) |
||||
Other investing activities |
10,653 |
947 |
64,451 |
1,946 |
||||
Net cash used in investing activities |
(47,689) |
(37,179) |
(94,235) |
(89,849) |
||||
Financing activities: |
||||||||
Issuance of current and long-term debt |
760,000 |
10,851 |
1,049,969 |
15,977 |
||||
Repayment of current and long-term debt |
(946,858) |
(105) |
(1,252,202) |
(7,921) |
||||
Debt issuance costs |
(11,626) |
(6,884) |
(13,814) |
(6,884) |
||||
Proceeds from exercise of stock options, including related tax effect |
583 |
402 |
2,021 |
13,267 |
||||
Contributions from noncontrolling investors, net |
16,321 |
11,320 |
30,944 |
13,207 |
||||
Dividends paid |
(21,915) |
(21,865) |
(65,710) |
(60,013) |
||||
Net cash used in financing activities |
(203,495) |
(6,281) |
(248,792) |
(32,367) |
||||
Increase (decrease) in cash and equivalents |
(133,818) |
179,003 |
(103,641) |
270,181 |
||||
Cash and equivalents at beginning of period |
420,938 |
277,691 |
390,761 |
186,513 |
||||
Cash and equivalents at end of period |
$ |
287,120 |
$ |
456,694 |
$ |
287,120 |
$ |
456,694 |
Supplemental disclosure information: |
||||||||
Cash paid for interest |
$ |
42,413 |
$ |
14,931 |
$ |
123,973 |
$ |
101,088 |
Cash paid for federal and state income taxes, net |
$ |
3,629 |
$ |
12,403 |
$ |
43,976 |
$ |
74,378 |
SOURCE Steel Dynamics, Inc.
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