Steel Dynamics Reports Second Quarter 2019 Results

Published

FORT WAYNE, Ind., July 22, 2019 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced second quarter 2019 financial results. The company reported second quarter 2019 net sales of $2.8 billion and net income of $194 million, or $0.87 per diluted share. Comparatively, prior year second quarter net income was $362 million, or $1.53 per diluted share, with net sales of $3.1 billion. Sequential first quarter 2019 net income was $204 million, or $0.91 per diluted share, with net sales of $2.8 billion.     

"Our second quarter 2019 consolidated operating income was $285 million and adjusted EBITDA $365 million," said Mark D. Millett, President and Chief Executive Officer.  "The team delivered a solid second quarter performance in a challenging steel pricing environment.  A weakening scrap price environment coupled with steel inventory destocking led to steel buying hesitancy. Despite these challenges, supported by the addition of United Steel Supply and the continued ramp-up of Heartland, our steel platform shipments improved.  As underlying steel demand remains constructive and scrap prices have steadied, we have recently seen stabilization and improvement in flat roll steel prices, resulting in increased flat roll order activity and improved order backlogs. However, structural, merchant bar, and reinforcing bar steel pricing remain pressured from domestic and import market competition.

"Underlying domestic steel demand remains intact, and we are seeing continued positive activity across most of the steel consuming sectors, including automotive, energy and industrial customers.  Additionally, as evidenced by our strong steel fabrication backlog, strength continues in non-residential construction." 

The company generated strong cash flow from operations of $361 million during the second quarter 2019 and increased liquidity to $2.3 billion. The company paid cash dividends of $54 million and repurchased $93 million of its common stock during the second quarter 2019. 

Second Quarter 2019 Comments

Second quarter 2019 operating income for the company's steel operations was $295 million, or six percent lower than sequential first quarter 2019 results. The decline in earnings resulted from metal spread compression which more than offset the three percent increase in overall steel shipments related to the ramp-up of the Heartland facility and the recent addition of United Steel Supply.  The sequential earnings decline was primarily driven by lower shipments and product pricing within the company's long product steel operations. The second quarter 2019 average external product selling price for the company's overall steel operations decreased $23 sequentially to $879 per ton.  The average ferrous scrap cost per ton melted at the company's steel mills decreased $22 to $316 per ton.

The company's steel processing locations (Heartland, Techs, United Steel Supply and Vulcan) represented 16 percent of the shipment mix in the second quarter 2019, compared to 13 percent in the sequential quarter and nine percent in the prior year second quarter.  These locations use steel products as their primary raw material, and the associated steel procurement cost represented 18 percent of the steel operations cost of goods sold for the second quarter 2019, 15 percent for the sequential quarter, and nine percent for the prior year second quarter. 

Second quarter 2019 operating income from the company's metals recycling operations decreased to $11 million, compared to $20 million in the sequential first quarter, as a result of both lower nonferrous shipments and ferrous selling values.  Both prime and obsolete scrap indices fell almost $90 per gross ton from March to June 2019.  As scrap flows started to slow based on lower procurement values, scrap pricing appears to have stabilized in July. 

Second quarter 2019 operating income from the company's steel fabrication operations was a strong $31 million, or 49 percent higher than sequential first quarter results. Earnings improved as higher shipments and lower raw material steel input costs, resulted in expanded profit margins. The steel fabrication platform order backlog remains strong, and customers remain optimistic concerning non-residential construction projects.  

Year-to-Date June 30, 2019 Comparison

For the six months ended June 30, 2019, net income was $399 million, or $1.78 per diluted share, with net sales of $5.6 billion, as compared to net income of $590 million, or $2.49 per diluted share, with net sales of $5.7 billion for the same period in 2018.  Although net sales remained consistent, first half 2019 operating income decreased 30 percent from record high 2018 results of $825 million, to $577 million.  The decline in earnings was driven by decreased product pricing at the company's Butler and Columbus Flat Roll divisions as hot roll coil price indices fell approximately $200 per ton, or over 25 percent, since December 2018. 

Compared to the first half 2018, the average first half 2019 external selling price for the company's overall steel operations increased $11 to $890 per ton, based on additional volumes from the company's Heartland and United Steel Supply locations. The average first half 2019 ferrous scrap cost per ton melted at the company's steel mills decreased $7 to $327 per ton.

The company generated strong cash flow from operations of $543 million, paid cash dividends of $96 million, and repurchased $177 million of its common stock during the first half of 2019.

Outlook   

"Based on domestic steel demand fundamentals, we are constructive concerning second half 2019 North American steel market dynamics," said Millett. "We believe steel consumption will experience modest growth and will be supported by further steel import reductions and the end of steel inventory destocking.  There have been recent trade actions that we believe could have a positive impact in further reducing unfairly traded steel imports into the United States, including coated flat roll steel, which could have a significant positive impact for Steel Dynamics, as we are the largest non-automotive flat roll steel coater in the U.S. 

"In combination with our existing and newly announced expansion initiatives, we believe there are firm drivers for our continued growth.  We are excited about our planned flat roll steel mill, and the anticipated long-term value creation it will bring through geographic and value-added product diversification. We plan for the new steel mill to have product capabilities beyond existing electric-arc-furnace flat roll steel producers today, competing even more effectively with the integrated steel model and foreign competition. We have targeted regional markets that represent over 27 million tons of relevant flat roll steel consumption, which includes the growing Mexican flat roll steel market. This facility should have a meaningful competitive advantage in those regions.  

"We continue to strengthen our financial position through strong cash flow generation and the execution of our long-term strategy. We are well-positioned for growth and remain focused on delivering long-term shareholder value through organic and transactional growth opportunities," concluded Millett.

Conference Call and Webcast

Steel Dynamics, Inc. will hold a conference call to discuss second quarter 2019 operating and financial results on Tuesday, July 23, 2019, at 10:00 a.m. Eastern Daylight Time. You may access the call and find dial-in information on the Investors section of the company's website at www.steeldynamics.com. For the call, a quarterly slide presentation will be available on the company's website at www.steeldynamics.com. A replay of the call will be available on our website until 11:59 p.m. Eastern Daylight Time on July 28, 2019.

About Steel Dynamics, Inc.

Steel Dynamics 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 facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.

Note Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA and Adjusted EBITDA, non-GAAP financial measures, provide additional meaningful information regarding the company's performance and financial strength. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA and Adjusted EBITDA included in this release may not be comparable to similarly titled measures of other companies.

Forward-Looking Statements

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, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", 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 uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuations in the cost of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses or assets; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.

More specifically, we refer you to Steel Dynamics' 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 under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, 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 website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com: Investors: SEC Filings.

 

Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended Six Months Ended Three Months
June 30, June 30, Ended
2019 2018 2019 2018 March 31, 2019
Net sales $ 2,770,515 $ 3,090,525 $ 5,587,950 $ 5,694,400 $ 2,817,435
Costs of goods sold 2,349,349 2,438,443 4,733,214 4,578,902 2,383,865
      Gross profit 421,166 652,082 854,736 1,115,498 433,570
Selling, general and administrative expenses 106,250 101,031 217,288 207,462 111,038
Profit sharing 22,871 42,335 46,548 68,997 23,677
Amortization of intangible assets 7,013 6,829 14,026 13,755 7,013
      Operating income 285,032 501,887 576,874 825,284 291,842
Interest expense, net of capitalized interest 32,321 31,512 63,443 63,408 31,122
Other expense (income), net (4,249) (5,035) (10,592) (9,498) (6,343)
      Income before income taxes 256,960 475,410 524,023 771,374 267,063
Income tax expense 60,214 112,838 122,450 183,327 62,236
      Net income 196,746 362,572 401,573 588,047 204,827
Net (income) loss attributable to noncontrolling interests (2,444) (123) (2,943) 1,953 (499)
      Net income attributable to Steel Dynamics, Inc. $ 194,302 $ 362,449 $ 398,630 $ 590,000 $ 204,328
Basic earnings per share attributable to
   Steel Dynamics, Inc. stockholders $ 0.88 $ 1.54 $ 1.79 $ 2.50 $ 0.91
Weighted average common shares outstanding 221,505 235,617 224,058 236,120 224,058
Diluted earnings per share attributable to
   Steel Dynamics, Inc. stockholders, including the effect
   of assumed conversions when dilutive $ 0.87 $ 1.53 $ 1.78 $ 2.49 $ 0.91
Weighted average common shares
   and share equivalents outstanding 222,519 236,945 223,741 237,334 224,962
Dividends declared per share $ 0.2400 $ 0.1875 $ 0.4800 $ 0.3750 $ 0.2400

 

 

Steel Dynamics, Inc. Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data) (in thousands)
Three Months Ended Six Months Ended Three Months June 30, December 31,
June 30, June 30, Ended Assets 2019 2018
2019 2018 2019 2018 March 31, 2019 (unaudited)
Current assets
Net sales $ 2,770,515 $ 3,090,525 $ 5,587,950 $ 5,694,400 $ 2,817,435    Cash and equivalents $ 972,561 $ 828,220
Costs of goods sold 2,349,349 2,438,443 4,733,214 4,578,902 2,383,865    Short term investments 114,154 228,783
      Gross profit 421,166 652,082 854,736 1,115,498 433,570    Accounts receivable, net 1,072,879 1,043,756
   Inventories 1,802,759 1,859,168
Selling, general and administrative expenses 106,250 101,031 217,288 207,462 111,038    Other current assets 61,248 72,730
Profit sharing 22,871 42,335 46,548 68,997 23,677       Total current assets 4,023,601 4,032,657
Amortization of intangible assets 7,013 6,829 14,026 13,755 7,013
      Operating income 285,032 501,887 576,874 825,284 291,842 Property, plant and equipment, net 2,947,243 2,945,767
Interest expense, net of capitalized interest 32,321 31,512 63,443 63,408 31,122 Intangible assets, net 256,302 270,328
Other expense (income), net (4,249) (5,035) (10,592) (9,498) (6,343)
      Income before income taxes 256,960 475,410 524,023 771,374 267,063 Goodwill 526,462 429,645
Income tax expense 60,214 112,838 122,450 183,327 62,236 Other assets 104,306 25,166
      Net income 196,746 362,572 401,573 588,047 204,827       Total assets $ 7,857,914 $ 7,703,563
Net (income) loss attributable to noncontrolling interests (2,444) (123) (2,943) 1,953 (499)
      Net income attributable to Steel Dynamics, Inc. $ 194,302 $ 362,449 $ 398,630 $ 590,000 $ 204,328 Liabilities and Equity
Current liabilities
Basic earnings per share attributable to    Accounts payable $ 525,156 $ 550,754
   Steel Dynamics, Inc. stockholders $ 0.88 $ 1.54 $ 1.79 $ 2.50 $ 0.91    Income taxes payable 3,032 7,468
   Accrued expenses 325,417 436,681
Weighted average common shares outstanding 221,505 235,617 224,058 236,120 224,058    Current maturities of long-term debt 72,131 24,234
      Total current liabilities 925,736 1,019,137
Diluted earnings per share attributable to
   Steel Dynamics, Inc. stockholders, including the effect Long-term debt 2,355,917 2,352,489
   of assumed conversions when dilutive $ 0.87 $ 1.53 $ 1.78 $ 2.49 $ 0.91
Deferred income taxes 457,784 435,838
Weighted average common shares
   and share equivalents outstanding 222,519 236,945 223,741 237,334 224,962 Other liabilities 70,196 8,870
      Total liabilities 3,809,633 3,816,334
Dividends declared per share $ 0.2400 $ 0.1875 $ 0.4800 $ 0.3750 $ 0.2400 Commitments and contingencies
Redeemable noncontrolling interests 139,930 111,240
Equity
   Common stock 645 645
   Treasury stock, at cost (1,354,157) (1,184,243)
   Additional paid-in capital 1,167,505 1,160,048
   Retained earnings 4,250,419 3,958,320
   Accumulated other comprehensive income 78 301
      Total Steel Dynamics, Inc. equity 4,064,490 3,935,071
   Noncontrolling interests (156,139) (159,082)
      Total equity 3,908,351 3,775,989
      Total liabilities and equity $ 7,857,914 $ 7,703,563

 

 

Steel Dynamics, Inc. Steel Dynamics, Inc. Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands, except per share data) (in thousands) (in thousands)
Three Months Ended Six Months Ended Three Months June 30, December 31, Three Months Ended Six Months Ended
June 30, June 30, Ended Assets 2019 2018 June 30, June 30,
2019 2018 2019 2018 March 31, 2019 (unaudited) 2019 2018 2019 2018
Current assets
Net sales $ 2,770,515 $ 3,090,525 $ 5,587,950 $ 5,694,400 $ 2,817,435    Cash and equivalents $ 972,561 $ 828,220 Operating activities:
Costs of goods sold 2,349,349 2,438,443 4,733,214 4,578,902 2,383,865    Short term investments 114,154 228,783    Net income $ 196,746 $ 362,572 $ 401,573 $ 588,047
      Gross profit 421,166 652,082 854,736 1,115,498 433,570    Accounts receivable, net 1,072,879 1,043,756
   Inventories 1,802,759 1,859,168    Adjustments to reconcile net income to net cash provided by
Selling, general and administrative expenses 106,250 101,031 217,288 207,462 111,038    Other current assets 61,248 72,730       operating activities:
Profit sharing 22,871 42,335 46,548 68,997 23,677       Total current assets 4,023,601 4,032,657       Depreciation and amortization 80,911 79,120 161,085 155,255
Amortization of intangible assets 7,013 6,829 14,026 13,755 7,013       Equity-based compensation 9,080 8,041 24,388 20,882
      Operating income 285,032 501,887 576,874 825,284 291,842 Property, plant and equipment, net 2,947,243 2,945,767       Deferred income taxes 11,550 11,993 23,641 21,538
      Other adjustments (564) (145) 164 (115)
Interest expense, net of capitalized interest 32,321 31,512 63,443 63,408 31,122 Intangible assets, net 256,302 270,328       Changes in certain assets and liabilities:
Other expense (income), net (4,249) (5,035) (10,592) (9,498) (6,343)          Accounts receivable 70,624 (163,465) 9,562 (282,283)
      Income before income taxes 256,960 475,410 524,023 771,374 267,063 Goodwill 526,462 429,645          Inventories 64,941 (90,312) 104,410 (171,023)
         Other assets 7,292 (630) 7,593 (735)
Income tax expense 60,214 112,838 122,450 183,327 62,236 Other assets 104,306 25,166          Accounts payable (58,484) 48,919 (55,278) 115,251
      Net income 196,746 362,572 401,573 588,047 204,827       Total assets $ 7,857,914 $ 7,703,563          Income taxes receivable/payable (36,428) 22,579 13,422 86,541
Net (income) loss attributable to noncontrolling interests (2,444) (123) (2,943) 1,953 (499)          Accrued expenses 15,805 47,361 (147,534) (29,390)
      Net income attributable to Steel Dynamics, Inc. $ 194,302 $ 362,449 $ 398,630 $ 590,000 $ 204,328 Liabilities and Equity       Net cash provided by operating activities 361,473 326,033 543,026 503,968
Current liabilities Investing activities:
Basic earnings per share attributable to    Accounts payable $ 525,156 $ 550,754    Purchases of property, plant and equipment (85,120) (55,203) (139,556) (105,809)
   Steel Dynamics, Inc. stockholders $ 0.88 $ 1.54 $ 1.79 $ 2.50 $ 0.91    Income taxes payable 3,032 7,468    Purchases of short term investments (49,465) (50,000) (99,142) (90,000)
   Accrued expenses 325,417 436,681    Proceeds from maturities of short term investments 109,034 - 213,771 -
Weighted average common shares outstanding 221,505 235,617 224,058 236,120 224,058    Current maturities of long-term debt 72,131 24,234    Acquisition of business, net of cash and restricted cash acquired - (396,409) (93,412) (396,409)
      Total current liabilities 925,736 1,019,137    Other investing activities 913 657 1,277 886
Diluted earnings per share attributable to       Net cash used in investing activities (24,638) (500,955) (117,062) (591,332)
   Steel Dynamics, Inc. stockholders, including the effect Long-term debt 2,355,917 2,352,489
   of assumed conversions when dilutive $ 0.87 $ 1.53 $ 1.78 $ 2.49 $ 0.91 Financing activities:
Deferred income taxes 457,784 435,838    Issuance of current and long-term debt 125,222 124,571 246,456 217,629
Weighted average common shares    Repayment of current and long-term debt (133,875) (118,089) (249,146) (231,123)
   and share equivalents outstanding 222,519 236,945 223,741 237,334 224,962 Other liabilities 70,196 8,870    Dividends paid (53,503) (44,268) (95,742) (81,065)
      Total liabilities 3,809,633 3,816,334    Purchase of treasury stock (93,136) (49,145) (177,444) (118,414)
   Other financing activities (12) (3,144) (5,732) (8,324)
Dividends declared per share $ 0.2400 $ 0.1875 $ 0.4800 $ 0.3750 $ 0.2400 Commitments and contingencies       Net cash used in financing activities (155,304) (90,075) (281,608) (221,297)
Redeemable noncontrolling interests 139,930 111,240 Increase (decrease) in cash, cash equivalents, and restricted cash 181,531 (264,997) 144,356 (308,661)
Cash, cash equivalents, and restricted cash at beginning of period 797,248 991,421 834,423 1,035,085
Equity Cash, cash equivalents, and restricted cash at end of period $ 978,779 $ 726,424 $ 978,779 $ 726,424
   Common stock 645 645
   Treasury stock, at cost (1,354,157) (1,184,243)
   Additional paid-in capital 1,167,505 1,160,048 Supplemental disclosure information:
   Retained earnings 4,250,419 3,958,320    Cash paid for interest $ 53,981 $ 53,226 $ 62,587 $ 61,855
   Accumulated other comprehensive income 78 301    Cash paid for income taxes, net $ 84,516 $ 79,995 $ 86,355 $ 78,950
      Total Steel Dynamics, Inc. equity 4,064,490 3,935,071
   Noncontrolling interests (156,139) (159,082)
      Total equity 3,908,351 3,775,989
      Total liabilities and equity $ 7,857,914 $ 7,703,563

 

 

Steel Dynamics, Inc. Steel Dynamics, Inc. Steel Dynamics, Inc. Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) CONSOLIDATED BALANCE SHEETS CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) SUPPLEMENTAL INFORMATION
(in thousands, except per share data) (in thousands) (in thousands) (dollars in thousands)
Three Months Ended Six Months Ended Three Months June 30, December 31, Three Months Ended Six Months Ended Second Quarter Year to Date
June 30, June 30, Ended Assets 2019 2018 June 30, June 30, 2019 2018 2019 2018 1Q 2019
2019 2018 2019 2018 March 31, 2019 (unaudited) 2019 2018 2019 2018 External Net Sales
Current assets    Steel $ 2,106,350 $ 2,325,426 $ 4,230,920 $ 4,247,216 $ 2,124,570
Net sales $ 2,770,515 $ 3,090,525 $ 5,587,950 $ 5,694,400 $ 2,817,435    Cash and equivalents $ 972,561 $ 828,220 Operating activities:    Fabrication 241,424 217,439 469,904 418,931 228,480
Costs of goods sold 2,349,349 2,438,443 4,733,214 4,578,902 2,383,865    Short term investments 114,154 228,783    Net income $ 196,746 $ 362,572 $ 401,573 $ 588,047    Metals Recycling 323,100 424,704 674,237 812,826 351,137
      Gross profit 421,166 652,082 854,736 1,115,498 433,570    Accounts receivable, net 1,072,879 1,043,756    Other 99,641 122,956 212,889 215,427 113,248
   Inventories 1,802,759 1,859,168    Adjustments to reconcile net income to net cash provided by       Consolidated  $ 2,770,515 $ 3,090,525 $ 5,587,950 $ 5,694,400 $ 2,817,435
Selling, general and administrative expenses 106,250 101,031 217,288 207,462 111,038    Other current assets 61,248 72,730       operating activities: Operating Income
Profit sharing 22,871 42,335 46,548 68,997 23,677       Total current assets 4,023,601 4,032,657       Depreciation and amortization 80,911 79,120 161,085 155,255    Steel $ 294,769 $ 537,192 $ 607,206 $ 875,549 $ 312,437
Amortization of intangible assets 7,013 6,829 14,026 13,755 7,013       Equity-based compensation 9,080 8,041 24,388 20,882    Fabrication 30,706 14,185 51,369 34,017 20,663
      Operating income 285,032 501,887 576,874 825,284 291,842 Property, plant and equipment, net 2,947,243 2,945,767       Deferred income taxes 11,550 11,993 23,641 21,538    Metals Recycling 10,614 25,728 30,572 53,533 19,958
      Other adjustments (564) (145) 164 (115)       Operations 336,089 577,105 689,147 963,099 353,058
Interest expense, net of capitalized interest 32,321 31,512 63,443 63,408 31,122 Intangible assets, net 256,302 270,328       Changes in certain assets and liabilities:
Other expense (income), net (4,249) (5,035) (10,592) (9,498) (6,343)          Accounts receivable 70,624 (163,465) 9,562 (282,283)    Non-cash amortization of intangible assets (7,013) (6,829) (14,026) (13,755) (7,013)
      Income before income taxes 256,960 475,410 524,023 771,374 267,063 Goodwill 526,462 429,645          Inventories 64,941 (90,312) 104,410 (171,023)    Profit sharing expense (22,871) (42,335) (46,548) (68,997) (23,677)
         Other assets 7,292 (630) 7,593 (735)    Non-segment operations (21,173) (26,054) (51,699) (55,063) (30,526)
Income tax expense 60,214 112,838 122,450 183,327 62,236 Other assets 104,306 25,166          Accounts payable (58,484) 48,919 (55,278) 115,251       Consolidated Operating Income  $ 285,032 $ 501,887 $ 576,874 $ 825,284 $ 291,842
      Net income 196,746 362,572 401,573 588,047 204,827       Total assets $ 7,857,914 $ 7,703,563          Income taxes receivable/payable (36,428) 22,579 13,422 86,541 Adjusted EBITDA
Net (income) loss attributable to noncontrolling interests (2,444) (123) (2,943) 1,953 (499)          Accrued expenses 15,805 47,361 (147,534) (29,390)       Net income $ 196,746 $ 362,572 $ 401,573 $ 588,047 $ 204,827
      Net income attributable to Steel Dynamics, Inc. $ 194,302 $ 362,449 $ 398,630 $ 590,000 $ 204,328 Liabilities and Equity       Net cash provided by operating activities 361,473 326,033 543,026 503,968       Income taxes 60,214 112,838 122,450 183,327 62,236
      Net interest expense 25,598 25,928 49,615 53,410 24,017
Current liabilities Investing activities:       Depreciation 72,585 70,871 144,431 138,694 71,846
Basic earnings per share attributable to    Accounts payable $ 525,156 $ 550,754    Purchases of property, plant and equipment (85,120) (55,203) (139,556) (105,809)       Amortization of intangible assets 7,013 6,829 14,026 13,755 7,013
   Steel Dynamics, Inc. stockholders $ 0.88 $ 1.54 $ 1.79 $ 2.50 $ 0.91    Income taxes payable 3,032 7,468    Purchases of short term investments (49,465) (50,000) (99,142) (90,000)       Noncontrolling interest (2,444) (124) (2,943) 1,953 (499)
   Accrued expenses 325,417 436,681    Proceeds from maturities of short term investments 109,034 - 213,771 -             EBITDA  359,712 578,914 729,152 979,186 369,440
Weighted average common shares outstanding 221,505 235,617 224,058 236,120 224,058    Current maturities of long-term debt 72,131 24,234    Acquisition of business, net of cash and restricted cash acquired - (396,409) (93,412) (396,409)       Non-cash adjustments
      Total current liabilities 925,736 1,019,137    Other investing activities 913 657 1,277 886          Unrealized hedging (gain) loss (3,719) 2,836 (1,977) (7,120) 1,742
Diluted earnings per share attributable to       Net cash used in investing activities (24,638) (500,955) (117,062) (591,332)          Inventory valuation 351 265 592 465 241
   Steel Dynamics, Inc. stockholders, including the effect Long-term debt 2,355,917 2,352,489          Equity-based compensation 9,080 8,375 19,699 17,955 10,619
   of assumed conversions when dilutive $ 0.87 $ 1.53 $ 1.78 $ 2.49 $ 0.91 Financing activities:             Adjusted EBITDA  $ 365,424 $ 590,390 $ 747,466 $ 990,486 $ 382,042
Deferred income taxes 457,784 435,838    Issuance of current and long-term debt 125,222 124,571 246,456 217,629 Other Operating Information
Weighted average common shares    Repayment of current and long-term debt (133,875) (118,089) (249,146) (231,123)    Steel
   and share equivalents outstanding 222,519 236,945 223,741 237,334 224,962 Other liabilities 70,196 8,870    Dividends paid (53,503) (44,268) (95,742) (81,065)       Average external sales price (Per ton) * $ 879 $ 932 $ 890 $ 879 $ 902
      Total liabilities 3,809,633 3,816,334    Purchase of treasury stock (93,136) (49,145) (177,444) (118,414)       Average ferrous cost (Per ton melted) # $ 316 $ 348 $ 327 $ 334 $ 338
   Other financing activities (12) (3,144) (5,732) (8,324)
Dividends declared per share $ 0.2400 $ 0.1875 $ 0.4800 $ 0.3750 $ 0.2400 Commitments and contingencies       Net cash used in financing activities (155,304) (90,075) (281,608) (221,297)       Flat Roll shipments
         Butler and Columbus Flat Roll Divisions 1,574,463 1,601,498 3,101,314 3,150,312 1,526,851
Redeemable noncontrolling interests 139,930 111,240 Increase (decrease) in cash, cash equivalents, and restricted cash 181,531 (264,997) 144,356 (308,661)          Techs, Heartland, and USS Divisions (processing) 422,849 222,303 753,624 417,065 330,775
Cash, cash equivalents, and restricted cash at beginning of period 797,248 991,421 834,423 1,035,085       Long Product shipments
Equity Cash, cash equivalents, and restricted cash at end of period $ 978,779 $ 726,424 $ 978,779 $ 726,424          Structural and Rail Division 352,013 441,019 728,276 809,802 376,263
   Common stock 645 645          Engineered Bar Products Division 195,644 250,092 402,518 465,242 206,874
   Treasury stock, at cost (1,354,157) (1,184,243)          Roanoke Bar Division 128,460 140,143 280,860 263,546 152,400
   Additional paid-in capital 1,167,505 1,160,048 Supplemental disclosure information:          Steel of West Virginia 95,929 78,881 187,177 162,613 91,248
   Retained earnings 4,250,419 3,958,320    Cash paid for interest $ 53,981 $ 53,226 $ 62,587 $ 61,855             Total shipments (Tons)  2,769,358 2,733,936 5,453,769 5,268,580 2,684,411
   Accumulated other comprehensive income 78 301    Cash paid for income taxes, net $ 84,516 $ 79,995 $ 86,355 $ 78,950
      Total Steel Dynamics, Inc. equity 4,064,490 3,935,071             External shipments (Tons) *  2,386,851 2,480,223 4,734,060 4,807,738 2,347,209
   Noncontrolling interests (156,139) (159,082)
      Total equity 3,908,351 3,775,989             Steel production (Tons) *  2,769,910 2,768,512 5,515,038 5,369,712 2,745,128
      Total liabilities and equity $ 7,857,914 $ 7,703,563    Metals Recycling
      Nonferrous shipments (000's of pounds) 266,222 304,034 558,260 575,662 292,038
      Ferrous shipments (Gross tons) 1,189,679 1,347,016 2,361,040 2,603,915 1,171,361
            External ferrous shipments (Gross tons) 425,477 466,125 808,318 903,115 382,841
   Fabrication
      Average external sales price (Per ton) $ 1,538 $ 1,380 $ 1,556 $ 1,363 $ 1,575
      Shipments (Tons) 156,983 157,902 302,205 307,828 145,222
*    Includes all steel operations
#    Includes ferrous cost per ton melted at our steel mills

 

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SOURCE Steel Dynamics, Inc.

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