FORT WAYNE, Ind., July 21, 2014 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced second quarter 2014 net
income of $72 million, or
$0.31 per diluted share, on net sales
of $2.1 billion. By comparison,
prior year second quarter net income was $29
million, or $0.13 per diluted
share, on net sales of $1.8 billion;
and sequential first quarter 2014 net income was $39 million, or $0.17 per diluted share, on net sales of
$1.8 billion.
"Our consolidated operating income increased 63 percent to
$132 million for the second quarter
2014, as compared to the first quarter," said Chief Executive
Officer Mark Millett. "All of our
reporting segments achieved meaningfully higher profitability
compared to the sequential quarter, improving beyond the negative
inclement weather impact on the first quarter. Despite
elevated import levels, the strength of underlying demand coupled
with our continued market diversification and customer focus
allowed us to achieve record quarterly steel shipments. We
are optimistic heading into the second half of 2014 and so are our
customers."
Compared to the first quarter 2014, operating income from the
company's steel operations increased $50
million, or 47 percent, driven by record shipments and
improved metal spreads. Sheet and structural steel volumes
were the primary contributors to the improved
profitability. The automotive and manufacturing markets
remain strong and the energy market appears to be strengthening, as
evidenced in increased demand for engineered special bar quality
steels. Continued modest growth in the nonresidential
construction market benefited both the structural steel and
fabrication operations. Compared to the first quarter 2014,
operating income from the company's fabrication operations more
than doubled.
"For our metals recycling operations operating income increased
to $18 million in the second quarter
2014, as compared to $10 million in
the sequential quarter, but the market environment remains
challenging," stated Millett. "Ferrous scrap availability and
volumes improved, but profitability margins compressed from first
quarter levels. However, the quarterly decline in sequential
ferrous profitability was more than offset by meaningful
improvements in nonferrous volumes and metal spreads."
Second Quarter Review
Second quarter 2014 shipments increased across the company's
platforms, as compared to the sequential quarter. Operating income
for the company's steel operations increased to $158 million, or 47 percent, as compared to the
sequential quarter, based on increased shipments of sheet,
engineered bar and structural steel, combined with overall metal
margin expansion in long products. The Flat Roll and
Structural and Rail Divisions each achieved record quarterly
shipments, as sheet steel increased 21 percent, structural steel
beam increased 14 percent, and rail improved 22 percent, in
comparison to the first quarter 2014. The average selling
price for the company's total steel operations slightly decreased
by $2 per ton. The average
ferrous scrap cost per ton melted decreased $16 per ton.
Second quarter operating income attributable to the company's
sheet steel operations increased 40 percent when compared to the
sequential quarter, and operating income from long product
operations increased 59 percent. The company's steel mill
production utilization rate was 90 percent in the second quarter
2014, compared to 86 percent in the sequential quarter.
Second quarter operating income from the company's metals
recycling operations increased 17 percent, as the increase in
nonferrous metal spread and four percent increase in total
shipments more the offset lower ferrous metal spread during the
second quarter 2014, when compared to the sequential
quarter.
The company's fabrication business increased second quarter 2014
operating income by $4 million, to
$8 million, driven by record
quarterly shipments based on both market share and overall demand
improvement. According to the Steel Joist Institute, domestic
year-over year joist shipments have increased 14 percent as of May
2014. Order inquiries and project bookings continue to
strengthen, signaling further recovery in the nonresidential
construction market.
The impact of losses from the company's Minnesota operations for second quarter 2014
consolidated net income was $9.1
million, or $0.04 per diluted
share, as compared to $8.9 million,
or $0.04 per diluted share in the
first quarter 2014. During the second quarter, as the company
indicated on the first quarter earnings teleconference, remaining
operating trials were completed and a four week outage was taken to
upgrade the rotary hearth furnace, and as anticipated these trials
and the outage resulted in second quarter losses similar to those
experienced in the first quarter 2014. The trials resulted in
encouraging results related to improvement in yield, quality,
volume and raw material input costs, resulting in a potential cost
structure that we believe is competitive. This cost structure
must be confirmed on a consistent ongoing basis over the coming
months. In the meantime, as the operations ramp up, third
quarter 2014 losses related to the company's Minnesota operations are expected to be
meaningfully less than those incurred in the second
quarter.
"We are pleased with the conversion of our 5.125% Convertible
Notes, which matured June 15, 2014,"
stated Chief Financial Officer, Theresa
Wagler. "The holders of $272
million of the security exercised their option to convert
the Notes into 15,893,457 shares of our common stock. The remaining
$16 million of outstanding Notes was
paid in cash. This security provided an important component
of our capital structure the past 5 years and its conversion to
equity further strengthens our financial position for
growth."
Year to Date Comparison
For the six months ended June 30,
2014, net income was $111
million, or $0.48 per diluted
share, on net sales of $3.9 billion,
as compared to net income of $77
million, or $0.34 per diluted
share, on net sales of $3.6 billion
for the six months ended June 30,
2013. Year-to-date 2014 consolidated net sales
increased eight percent, primarily as a result of higher average
steel pricing and shipments. Year-to-date 2014 consolidated
operating income increased $47
million, or 29 percent, primarily as a result of improved
steel metal spread. The average selling price for the
company's total steel operations increased $49 per ton. The average ferrous scrap cost
per ton melted increased $18 per
ton.
Outlook
"We continue to remain optimistic," Millett said. "The
improvement in our financial and operational performance is
indicative of more than a mere weather recovery from the first
quarter. The demand for our products continues to improve. The
recent growth projects which began ramping-up in 2014 are also
beginning to contribute to our earnings. The automotive and
manufacturing markets remain strong, and we believe the increase in
domestic energy investments is continuing to strengthen. We
continue to have confidence that the broader U.S. economic recovery
is strengthening, and that the non-service sector portion of the
domestic GDP remains capable of growing at a faster rate than the
overall GDP. We believe our diversified offerings of
value-added products and our exceptional team, combined with our
unique operating culture provides us a unique competitive advantage
as we capitalize on the opportunities ahead.
"Our organic growth projects and latent steel capacity, coupled
with our planned acquisition of the Severstal Columbus steel mill,
and our belief that domestic steel consumption is on the upward
trend—all point toward meaningful growth opportunities for Steel
Dynamics' employees, customers and shareholders," concluded
Millett.
Summary Second Quarter Operating Segment 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, engineered special-bar-quality
steel, rebar, rail, and specialty shapes.
|
|
Second
Quarter
|
|
Year To
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
1Q 2014
|
Total
Sales
|
|
$1,370,995
|
|
$1,165,775
|
|
$2,560,928
|
|
$2,307,850
|
|
$1,189,933
|
External
Sales
|
|
1,265,104
|
|
1,091,015
|
|
2,382,703
|
|
2,152,327
|
|
1,117,599
|
Operating
Income
|
|
158,083
|
|
87,833
|
|
265,859
|
|
209,422
|
|
107,776
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
1,677,766
|
|
1,522,668
|
|
3,128,498
|
|
2,992,470
|
|
1,450,732
|
External Shipments
(tons)
|
|
1,518,882
|
|
1,396,380
|
|
2,857,455
|
|
2,740,812
|
|
1,338,573
|
Production
(tons)
|
|
1,708,252
|
|
1,500,224
|
|
3,227,818
|
|
3,065,291
|
|
1,519,566
|
|
|
|
|
|
|
|
|
|
|
|
Average External
Sales Price Per Ton
|
|
$833
|
|
$781
|
|
$834
|
|
$785
|
|
$835
|
Average Ferrous Scrap
Cost Per Ton
|
|
$364
|
|
$354
|
|
$371
|
|
$353
|
|
$380
|
Metals Recycling and Ferrous Resources
Operations
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 iron producing operations.
|
|
Second
Quarter
|
|
Year To
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
1Q 2014
|
Metals Recycling
& Ferrous Resources
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$1,014,161
|
|
$ 893,116
|
|
$2,007,666
|
|
$1,807,684
|
|
$ 993,505
|
External Sales
|
|
645,216
|
|
585,492
|
|
1,220,990
|
|
1,206,620
|
|
575,774
|
Operating
Loss
|
|
(1,517)
|
|
(1,811)
|
|
(12,498)
|
|
(6,120)
|
|
(10,981)
|
Unrealized Hedging
Gain (Loss), Net
|
|
(2,499)
|
|
(2,220)
|
|
1,567
|
|
134
|
|
4,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OmniSource
Standalone
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$ 891,627
|
|
$ 794,750
|
|
$1,772,245
|
|
$1,629,789
|
|
$ 880,618
|
External
Sales
|
|
580,509
|
|
554,996
|
|
1,103,633
|
|
1,164,914
|
|
523,124
|
Operating
Income
|
|
18,398
|
|
15,774
|
|
27,947
|
|
40,739
|
|
9,549
|
Unrealized Hedging
Gain (Loss), Net
|
|
(2,371)
|
|
(1,583)
|
|
359
|
|
(892)
|
|
2,730
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Shipments
(gross tons)
|
|
1,422,697
|
|
1,334,390
|
|
2,787,230
|
|
2,677,319
|
|
1,364,533
|
% Shipments to SDI
Steel Mills
|
|
46%
|
|
39%
|
|
49%
|
|
41%
|
|
52%
|
Nonferrous Shipments
(pounds 000's)
|
|
288,233
|
|
254,495
|
|
559,211
|
|
534,151
|
|
270,978
|
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.
|
|
Second
Quarter
|
|
Year To
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
1Q 2014
|
Total
Sales
|
|
$134,852
|
|
$ 104,159
|
|
$ 250,713
|
|
$ 198,534
|
|
$115,861
|
Operating
Income
|
|
7,590
|
|
2,330
|
|
10,716
|
|
3,860
|
|
3,126
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
105,188
|
|
86,371
|
|
199,855
|
|
163,954
|
|
94,667
|
Average Sales Price
Per Ton
|
|
$1,282
|
|
$1,206
|
|
$1,254
|
|
$1,210
|
|
$1,224
|
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 $7.4 billion in 2013, over 6,800 employees, and
manufacturing facilities primarily located throughout the United States (including five steel mills,
six steel processing facilities, two iron production facilities,
over 90 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 recurrent slowing economy 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 Tuesday, July 22, 2014, at
10:00 a.m. Eastern Time, Steel
Dynamics will host a conference call with investors and analysts to
discuss the company's second quarter 2014 operating and financial
results. We invite you to listen to the live audiocast of the
conference call accessible from our website
(http://www.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
11:59 p.m. Eastern Time on
July 29, 2014. A podcast/MP3
file 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
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
March
31,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,069,761
|
$
|
1,801,340
|
$
|
3,899,843
|
$
|
3,597,036
|
$
|
1,830,082
|
Costs of goods
sold
|
|
1,846,990
|
|
1,653,648
|
|
3,513,768
|
|
3,273,080
|
|
1,666,778
|
Gross
profit
|
|
222,771
|
|
147,692
|
|
386,075
|
|
323,956
|
|
163,304
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
73,463
|
|
65,356
|
|
143,505
|
|
130,618
|
|
70,042
|
Profit
sharing
|
|
10,469
|
|
4,779
|
|
15,864
|
|
11,422
|
|
5,395
|
Amortization of
intangible assets
|
|
6,934
|
|
8,051
|
|
13,869
|
|
16,178
|
|
6,935
|
Impairment
charges
|
|
-
|
|
308
|
|
-
|
|
308
|
|
-
|
Operating
income
|
|
131,905
|
|
69,198
|
|
212,837
|
|
165,430
|
|
80,932
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
30,050
|
|
31,465
|
|
60,619
|
|
66,094
|
|
30,569
|
Other expense
(income), net
|
|
(1,754)
|
|
(1,246)
|
|
(2,385)
|
|
(2,292)
|
|
(631)
|
Income
before income taxes
|
|
103,609
|
|
38,979
|
|
154,603
|
|
101,628
|
|
50,994
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
37,268
|
|
15,706
|
|
54,564
|
|
37,103
|
|
17,296
|
Net
income
|
|
66,341
|
|
23,273
|
|
100,039
|
|
64,525
|
|
33,698
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
|
5,962
|
|
5,685
|
|
10,843
|
|
12,648
|
|
4,881
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to
Steel Dynamics, Inc.
|
$
|
72,303
|
$
|
28,958
|
$
|
110,882
|
$
|
77,173
|
$
|
38,579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
Steel
Dynamics, Inc. stockholders
|
$
|
0.32
|
$
|
0.13
|
$
|
0.49
|
$
|
0.35
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
226,220
|
|
220,471
|
|
224,615
|
|
220,233
|
|
223,011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to Steel Dynamics, Inc. stockholders,
including the effect of assumed conversions when
dilutive
|
$
|
0.31
|
$
|
0.13
|
$
|
0.48
|
$
|
0.34
|
$
|
0.17
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and
equivalents outstanding (Note 1)
|
|
242,048
|
|
221,736
|
|
241,721
|
|
238,246
|
|
241,394
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.115
|
$
|
0.11
|
$
|
0.23
|
$
|
0.22
|
$
|
0.115
|
|
(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 June 30, 2013, because the impact to diluted
earnings per share was anti-dilutive.
|
Steel Dynamics,
Inc.
UNAUDITED
SUPPLEMENTAL OPERATING INFORMATION
(dollars in
thousands)
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
|
|
June
30,
|
|
June
30,
|
|
March
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Steel
Operations*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
Flat Roll
Division
|
778,220
|
|
720,582
|
|
1,419,740
|
|
1,424,872
|
|
641,520
|
|
Structural and Rail
Division
|
|
|
|
|
|
|
|
|
|
|
|
Structural
|
282,681
|
|
223,700
|
|
531,061
|
|
451,789
|
|
248,380
|
|
|
Rail
|
53,699
|
|
63,274
|
|
97,635
|
|
116,082
|
|
43,936
|
|
Engineered Bar
Products Division
|
152,768
|
|
123,919
|
|
297,071
|
|
236,740
|
|
144,303
|
|
Roanoke Bar
Division
|
143,583
|
|
134,001
|
|
287,365
|
|
273,951
|
|
143,782
|
|
Steel of West
Virginia
|
74,881
|
|
77,975
|
|
150,455
|
|
158,682
|
|
75,574
|
|
The Techs
|
191,934
|
|
179,217
|
|
345,171
|
|
330,354
|
|
153,237
|
|
|
Total
|
1,677,766
|
|
1,522,668
|
|
3,128,498
|
|
2,992,470
|
|
1,450,732
|
|
|
Intra-company
|
(158,884)
|
|
(126,288)
|
|
(271,043)
|
|
(251,658)
|
|
(112,159)
|
|
|
External
|
1,518,882
|
|
1,396,380
|
|
2,857,455
|
|
2,740,812
|
|
1,338,573
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Operations
Production (tons)
|
1,708,252
|
|
1,500,224
|
|
3,227,818
|
|
3,065,291
|
|
1,519,566
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Total
|
$ 1,370,995
|
|
$ 1,165,775
|
|
$ 2,560,928
|
|
$ 2,307,850
|
|
$ 1,189,933
|
|
Intra-company
|
(105,891)
|
|
(74,760)
|
|
(178,225)
|
|
(155,523)
|
|
(72,334)
|
|
External
|
$ 1,265,104
|
|
$ 1,091,015
|
|
$ 2,382,703
|
|
$ 2,152,327
|
|
$ 1,117,599
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before amortization of intangibles
|
$ 158,083
|
|
$ 87,833
|
|
$ 265,859
|
|
$ 209,422
|
|
$ 107,776
|
|
Amortization of
intangibles
|
(2,134)
|
|
(2,288)
|
|
(4,267)
|
|
(4,576)
|
|
(2,133)
|
Operating income
(Note 1)
|
$ 155,949
|
|
$ 85,545
|
|
$ 261,592
|
|
$ 204,846
|
|
$ 105,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals Recycling
and Ferrous Resources Operations**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OmniSource (Stand
alone)
|
|
|
|
|
|
|
|
|
|
Ferrous metals
shipments (gross tons)
|
|
|
|
|
|
|
|
|
|
|
Total
|
1,422,697
|
|
1,334,390
|
|
2,787,230
|
|
2,677,319
|
|
1,364,533
|
|
Intra-company
|
(653,651)
|
|
(548,268)
|
|
(1,368,632)
|
|
(1,102,158)
|
|
(714,981)
|
|
External
|
769,046
|
|
786,122
|
|
1,418,598
|
|
1,575,161
|
|
649,552
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous
metals shipments (thousands of pounds)
|
|
|
|
|
|
|
|
|
|
|
Total
|
288,233
|
|
254,495
|
|
559,211
|
|
534,151
|
|
270,978
|
|
Intra-company
|
(17,962)
|
|
(6,737)
|
|
(37,352)
|
|
(10,266)
|
|
(19,390)
|
|
External
|
270,271
|
|
247,758
|
|
521,859
|
|
523,885
|
|
251,588
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mesabi Nugget
shipments (metric tons) - Intra-company
|
32,542
|
|
44,454
|
|
70,030
|
|
104,139
|
|
37,488
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron Dynamics (metric
tons) - Intra-company
|
64,756
|
|
66,285
|
|
121,878
|
|
130,970
|
|
57,122
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal Recycling
and Ferrous Resources Operations
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Total
|
$ 1,014,161
|
|
$ 893,116
|
|
$ 2,007,666
|
|
$ 1,807,684
|
|
$ 993,505
|
|
Intra-company
|
(368,945)
|
|
(307,624)
|
|
(786,676)
|
|
(601,064)
|
|
(417,731)
|
|
External
|
$ 645,216
|
|
$ 585,492
|
|
$ 1,220,990
|
|
$ 1,206,620
|
|
$ 575,774
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss before
amortization of intangibles
|
$
(1,517)
|
|
$
(1,811)
|
|
$ (12,498)
|
|
$
(6,120)
|
|
$ (10,981)
|
|
Amortization of
intangibles
|
(4,536)
|
|
(5,440)
|
|
(9,074)
|
|
(10,955)
|
|
(4,538)
|
Operating loss (Note
1)
|
$
(6,053)
|
|
$
(7,251)
|
|
$ (21,572)
|
|
$ (17,075)
|
|
$ (15,519)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Fabrication
Operations***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
Total
|
105,188
|
|
86,371
|
|
199,855
|
|
163,954
|
|
94,667
|
|
Intra-company
|
-
|
|
(460)
|
|
-
|
|
(794)
|
|
-
|
|
External
|
105,188
|
|
85,911
|
|
199,855
|
|
163,160
|
|
94,667
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Total
|
$ 134,852
|
|
$ 104,159
|
|
$ 250,713
|
|
$ 198,534
|
|
$ 115,861
|
|
Intra-company
|
-
|
|
(564)
|
|
-
|
|
(1,142)
|
|
-
|
|
External
|
$ 134,852
|
|
$ 103,595
|
|
$ 250,713
|
|
$ 197,392
|
|
$ 115,861
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Note 1)
|
$
7,590
|
|
$
2,330
|
|
$ 10,716
|
|
$
3,860
|
|
$
3,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
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
Minnesota Operations (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)
|
|
|
|
|
June
30,
2014
|
|
|
December
31,
2013
|
|
|
|
|
(unaudited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
357,490
|
|
$
|
395,156
|
|
Accounts
receivable, net
|
|
|
910,796
|
|
|
720,600
|
|
Inventories
|
|
|
1,320,871
|
|
|
1,314,747
|
|
Deferred
income taxes
|
|
|
17,813
|
|
|
17,964
|
|
Other
current assets
|
|
|
23,216
|
|
|
25,167
|
|
Total current
assets
|
|
|
2,630,186
|
|
|
2,473,634
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
|
2,177,007
|
|
|
2,226,134
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
18,460
|
|
|
23,827
|
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
372,819
|
|
|
386,159
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
728,751
|
|
|
731,996
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
57,979
|
|
|
91,256
|
|
Total assets
|
|
$
|
5,985,202
|
|
$
|
5,933,006
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
440,691
|
|
$
|
414,932
|
|
Income
taxes payable
|
|
|
19,448
|
|
|
4,023
|
|
Accrued
expenses
|
|
|
191,323
|
|
|
214,679
|
|
Current maturities of long-term debt
|
|
|
61,761
|
|
|
341,544
|
|
Total current liabilities
|
|
|
713,223
|
|
|
975,178
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
Senior
term loan
|
|
|
199,375
|
|
|
220,000
|
|
Senior
notes
|
|
|
1,500,000
|
|
|
1,500,000
|
|
Other
long-term debt
|
|
|
42,753
|
|
|
46,045
|
|
Total long-term debt
|
|
|
1,742,128
|
|
|
1,766,045
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
548,285
|
|
|
556,038
|
|
Other
liabilities
|
|
|
22,356
|
|
|
23,376
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
124,180
|
|
|
116,514
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Common
stock
|
|
|
647
|
|
|
645
|
|
Treasury
stock, at cost
|
|
|
(398,818)
|
|
|
(718,529)
|
|
Additional
paid-in
capital
|
|
|
1,058,921
|
|
|
1,085,694
|
|
Retained
earnings
|
|
|
2,237,147
|
|
|
2,179,513
|
|
Total Steel Dynamics, Inc. equity
|
|
|
2,897,897
|
|
|
2,547,323
|
|
Noncontrolling interests
|
|
|
(62,867)
|
|
|
(51,468)
|
|
Total equity
|
|
|
2,835,030
|
|
|
2,495,855
|
|
Total liabilities and
equity
|
|
$
|
5,985,202
|
|
$
|
5,933,006
|
|
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
66,341
|
$
|
23,273
|
$
|
100,039
|
$
|
64,525
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
58,441
|
|
56,826
|
|
116,009
|
|
113,887
|
Equity-based compensation
|
|
4,700
|
|
2,344
|
|
10,468
|
|
7,097
|
Deferred income
taxes
|
|
(280)
|
|
10,812
|
|
(4,371)
|
|
21,747
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(99,696)
|
|
(19,826)
|
|
(188,646)
|
|
(130,764)
|
Inventories
|
|
11,230
|
|
1,660
|
|
(6,124)
|
|
34,008
|
Accounts
payable
|
|
13,385
|
|
(46,370)
|
|
18,426
|
|
(7,382)
|
Income taxes receivable/payable
|
|
(4,964)
|
|
(23,304)
|
|
14,429
|
|
(26,326)
|
Other assets and
liabilities
|
|
26,857
|
|
27,300
|
|
(11,463)
|
|
(14,367)
|
Net cash provided by operating
activities
|
|
76,014
|
|
32,715
|
|
48,767
|
|
62,425
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
(33,534)
|
|
(49,236)
|
|
(58,375)
|
|
(94,582)
|
Other
investing activities
|
|
2,314
|
|
863
|
|
31,198
|
|
34,797
|
Net cash used in investing activities
|
|
(31,220)
|
|
(48,373)
|
|
(27,177)
|
|
(59,785)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term
debt
|
|
63,945
|
|
32
|
|
107,398
|
|
409,293
|
Repayment
of current and long-term
debt
|
|
(76,412)
|
|
(202,312)
|
|
(132,658)
|
|
(508,003)
|
Debt
issuance costs
|
|
-
|
|
(195)
|
|
-
|
|
(6,192)
|
Proceeds
from exercise of stock options, including related tax
effect
|
|
8,516
|
|
2,977
|
|
11,421
|
|
10,591
|
Contributions from noncontrolling investors, net
|
|
(606)
|
|
5,286
|
|
4,764
|
|
5,697
|
Dividends
paid
|
|
(25,666)
|
|
(24,238)
|
|
(50,181)
|
|
(46,190)
|
Net cash used in financing
activities
|
|
(30,223)
|
|
(218,450)
|
|
(59,256)
|
|
(134,804)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and equivalents
|
|
14,571
|
|
(234,108)
|
|
(37,666)
|
|
(132,164)
|
Cash and
equivalents at beginning of period
|
|
342,919
|
|
477,861
|
|
395,156
|
|
375,917
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents at end of period
|
$
|
357,490
|
$
|
243,753
|
$
|
357,490
|
$
|
243,753
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Cash paid
for interest
|
$
|
20,838
|
$
|
17,583
|
$
|
60,501
|
$
|
67,315
|
Cash paid
for federal and state income taxes, net
|
$
|
43,008
|
$
|
27,360
|
$
|
45,151
|
$
|
38,525
|
|
|
|
|
|
|
|
|
|
SOURCE Steel Dynamics, Inc.