FORT WAYNE, Ind., Oct. 20, 2014 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced third quarter 2014 net sales
of $2.3 billion and net income of
$91 million, or $0.38 per diluted share, which includes the
negative impact of approximately $0.09 per diluted share related to acquisition
costs, financing fees, and the effect of purchase accounting
adjustments for the Severstal Columbus, LLC acquisition that
occurred mid-September. The acquisition and financing costs
are reflected in the company's consolidated income statement as
other expense and the purchase accounting adjustments are reflected
as additional costs of goods sold. Excluding these charges,
the company's third quarter 2014 earnings would have been
$0.47 per diluted share.
Comparatively, prior year third quarter net income was
$57 million, or $0.25 per diluted share, on net sales of
$1.9 billion; and sequential second
quarter 2014 net income was $72
million, or $0.31 per diluted
share, on net sales of $2.1
billion.
"We are very pleased with our operational and financial
performance," said Chief Executive Officer, Mark Millett. "Our consolidated operating income
increased 43 percent to $189 million
for the third quarter 2014, as compared to the second
quarter. During the third quarter, we achieved record volumes
in fabrication and steel, even before including the results from
our recent acquisition. Despite the continued elevated levels
of steel imports into the U.S., the strength of underlying demand,
coupled with our market diversification and customer focus
supported our record shipments, and we remain optimistic heading
toward the end of the year.
"We also successfully completed the acquisition of the
Columbus flat roll steel mill
mid-September, adding one of the most technologically advanced
steel mills in the U.S. to our portfolio. The acquisition of
Columbus represents a significant
step in the continuation of our growth strategy. It
leverages our core strengths, further increasing value-added
product and market diversification. Once again, we
enthusiastically welcome the Columbus employees and customers into the
Steel Dynamics family, and look forward to working with them to
drive future growth and success."
Compared to the second quarter, operating income from the
company's steel operations increased 28 percent to $202 million for the third quarter 2014, driven
by record quarterly shipments and improved metal spread.
Strong demand in automotive, manufacturing and energy markets
supported volumes. Growth in the nonresidential
construction market also improved, as evidenced by record shipments
of both structural and joist steel during the quarter.
Operating income from the company's fabrication operations
increased to $19 million in the third
quarter 2014, more than double the amount achieved in the second
quarter of this year.
For the company's metals recycling operations, operating income
decreased to $13 million in the third
quarter 2014, as compared to $18
million in the sequential quarter. Profitability was
negatively impacted by lower nonferrous metals margins, which more
than offset the increase in overall shipments. Ferrous scrap
availability and volumes improved sequentially.
Third Quarter Review
Third quarter 2014 shipments increased across all of the
company's operating platforms, as compared to the sequential
quarter. Operating income for the company's steel operations
increased 28 percent, as compared to the sequential quarter.
Excluding Columbus purchase accounting adjustments, operating
income from steel operations increased approximately 37 percent,
based on improved metal spreads and record total shipments.
The Structural and Rail and Engineered Bar Divisions each achieved
record quarterly shipments, with an increase of 8 percent in
structural steel beams, 12 percent in rail, and 16 percent in
engineered steel. The average product selling price for the
company's steel operations increased $7 to $840 per
ton. The average ferrous scrap cost per ton melted decreased
$8 to $356 per ton.
Third quarter operating income attributable to the company's
sheet steel operations increased 11 percent when compared to the
sequential quarter, and operating income from long product
operations increased 52 percent. The company's steel mill
production utilization rate was 90 percent in the third quarter
2014, compared to 95 percent in the sequential quarter. The
decrease in rate was a function of increased estimated capacity
attributable to the SBQ expansion and the 4-day scheduled
maintenance outage at the Butler Flat Roll Division, excluding the
impact from these items utilization would have been consistent with
the second quarter production rate.
Third quarter operating income from the company's metals
recycling operations decreased 29 percent, as the significant
decrease in nonferrous metal spread more than offset the 13 percent
increase in shipments, as compared to the sequential
quarter.
Operating income for the company's fabrication operations more
than doubled, increasing from $8
million in the second quarter 2014 to $19 million for the third quarter, driven by
record quarterly shipments based on both market share gain and
overall demand improvement. Through August
2014, domestic steel joist shipments have increased 21
percent year-over-year, as reported by the Steel Joist
Institute. Order inquiries and project bookings remain
strong, supporting the positive trend in the nonresidential
construction market.
The financial performance of the company's Minnesota operations improved in the third
quarter 2014, resulting in the impact of losses on consolidated net
income decreasing to $5 million, or
$0.02 per diluted share, compared to
$9 million, or $0.04 per diluted share recorded in the second
quarter of this year. Improvements in yield, volume and
quality were achieved, and the company believes there will be
further improvement, as the facilities continue to be operated on a
consistent basis and further reductions in raw material costs are
achieved.
In connection with the Columbus
acquisition, during the third quarter 2014 the company issued
$1.2 billion senior unsecured notes,
comprised of a $700 million 5.125%
seven-year tranche and $500 million
5.500% ten-year tranche. The remainder of the
$1.6 billion purchase price was paid
with a combination of available cash and borrowings on the
company's revolving credit facility. "We are pleased with the
successful execution of the recent financing related to the
Columbus acquisition," stated
Chief Financial Officer, Theresa
Wagler. "The team did a great job and accessed the
high yield bond market at an opportune time, raising $1.2 billion at an attractive long term average
interest rate of 5.28%."
Year-to-Date Comparison
Year-to-date September 30, 2014,
net income was $202 million, or
$0.85 per diluted share, on net sales
of $6.2 billion, as compared to net
income of $135 million, or
$0.59 per diluted share, on net sales
of $5.5 billion for the prior year
period. Consolidated net sales increased 13 percent,
primarily as a result of higher average steel pricing and improved
shipments across the company's operating platforms. As
compared to the prior year period, consolidated operating income
increased $123 million, or 44
percent, primarily as a result of improved steel metal
spread. The average selling price for the company's steel
operations increased $48 per
ton. The average ferrous scrap cost per ton melted increased
$15 per ton.
Outlook
"Looking ahead, we remain optimistic," Millett said. "Despite
recent broader global concerns, the U.S. economy is continuing to
improve, inflation remains low and borrowing rates remain at
historically attractive levels. We continue to be the
beneficiaries of strong end markets, such as automotive,
manufacturing, transportation and energy. We also believe growth in
the construction market will continue as evidenced by the increased
demand for our construction-related steel products. With the
Columbus acquisition, we gain
geographic and product diversification in higher-growth markets in
the southern U.S. and Mexico. We believe our diversified
offerings of value-added products delivered by our exceptional
team, combined with our unique operating culture, provides us a
compelling advantage as we capitalize on the opportunities
ahead. Our organic growth projects and latent steel capacity,
coupled with the acquisition of Columbus, and our belief that domestic steel
consumption will continue to improve—all point toward meaningful
growth opportunities for Steel Dynamics' employees, customers and
shareholders," concluded Millett.
Summary Third 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 six electric-arc-furnace steel mills and
related steel finishing and processing facilities (with The Techs),
which includes the results of the Columbus flat roll steel mill from the date of
acquisition on September 16,
2014. The company's steel operations produce flat-roll steel,
structural steel, merchant bars, engineered special-bar-quality
steel, rebar, rail, and specialty shapes.
|
|
Third
Quarter
|
|
Year to
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2Q
2014
|
Total
Sales
|
|
$ 1,564,112
|
|
$ 1,237,247
|
|
$ 4,125,040
|
|
$ 3,545,097
|
|
$ 1,370,995
|
External
Sales
|
|
1,451,211
|
|
1,162,429
|
|
3,833,914
|
|
3,314,756
|
|
1,265,104
|
Operating
Income
|
|
202,084
|
|
148,698
|
|
467,943
|
|
358,120
|
|
158,083
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
1,900,043
|
|
1,585,125
|
|
5,028,541
|
|
4,577,595
|
|
1,677,766
|
External Shipments
(tons)
|
|
1,728,023
|
|
1,463,867
|
|
4,585,478
|
|
4,204,679
|
|
1,518,882
|
Production
(tons)
|
|
1,885,299
|
|
1,612,824
|
|
5,113,117
|
|
4,678,115
|
|
1,708,252
|
|
|
|
|
|
|
|
|
|
|
|
Average External
Sales Price Per Ton
|
|
$
840
|
|
$
794
|
|
$
836
|
|
$
788
|
|
$
833
|
Average Ferrous Scrap
Cost Per Ton
|
|
$
356
|
|
$
349
|
|
$
366
|
|
$
351
|
|
$
364
|
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.
|
|
Third
Quarter
|
|
Year to
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2Q
2014
|
Metals Recycling
& Ferrous Resources
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$ 1,111,300
|
|
$ 948,134
|
|
$ 3,118,966
|
|
$ 2,755,818
|
|
$ 1,014,161
|
External Sales
|
|
672,397
|
|
605,381
|
|
1,893,387
|
|
1,812,001
|
|
645,216
|
Operating
Loss
|
|
(798)
|
|
(11,695)
|
|
(13,296)
|
|
(17,815)
|
|
(1,517)
|
Unrealized Hedging
Gain (Loss), Net
|
|
3,125
|
|
(2,451)
|
|
4,692
|
|
(2,317)
|
|
(2,499)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OmniSource
Standalone
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$ 953,483
|
|
$ 848,043
|
|
$ 2,725,728
|
|
$ 2,477,832
|
|
$ 891,627
|
External
Sales
|
|
597,648
|
|
577,087
|
|
1,701,281
|
|
1,742,001
|
|
580,509
|
Operating
Income
|
|
13,021
|
|
11,166
|
|
40,968
|
|
51,905
|
|
18,398
|
Unrealized Hedging
Gain (Loss), Net
|
|
2,664
|
|
(1,391)
|
|
3,023
|
|
(2,283)
|
|
(2,371)
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Shipments
(gross tons)
|
|
1,453,671
|
|
1,472,418
|
|
4,240,901
|
|
4,149,737
|
|
1,422,697
|
% Shipments to SDI
Steel Mills
|
|
46%
|
|
46%
|
|
48%
|
|
43%
|
|
46%
|
Nonferrous Shipments
(pounds 000's)
|
|
325,436
|
|
263,467
|
|
884,647
|
|
797,618
|
|
288,233
|
Steel Fabrication Operations
Steel fabrication operations include New Millennium Building
Systems, which fabricates steel joists, trusses, and decking used
in the construction of nonresidential buildings.
|
|
Third
Quarter
|
|
Year to
Date
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2Q
2014
|
Total
Sales
|
|
$ 190,036
|
|
$ 119,268
|
|
$ 440,749
|
|
$ 317,802
|
|
$ 134,852
|
Operating
Income
|
|
19,474
|
|
3,265
|
|
30,190
|
|
7,125
|
|
7,590
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
143,737
|
|
101,590
|
|
343,592
|
|
265,544
|
|
105,188
|
Average Sales Price
Per Ton
|
|
$ 1,322
|
|
$ 1,174
|
|
$ 1,283
|
|
$ 1,196
|
|
$ 1,282
|
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 7,600 employees, and
manufacturing facilities primarily located throughout the United States (including six 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 website, www.sec.gov, and on the
Steel Dynamics website, www.steeldynamics.com.
Conference Call and Webcast
On Tuesday, October 21, 2014, 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 2014 operating and financial
results. We invite you to listen to the live webcast 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
October 28, 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
|
|
Nine
Months
Ended
|
|
Three
Months
Ended
|
|
September
30,
|
|
September
30,
|
|
June
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
2,339,016
|
$
|
1,911,738
|
$
|
6,238,859
|
$
|
5,508,774
|
$
|
2,069,761
|
Costs of goods
sold
|
|
2,050,504
|
|
1,714,546
|
|
5,564,272
|
|
4,987,626
|
|
1,846,990
|
Gross
profit
|
|
288,512
|
|
197,192
|
|
674,587
|
|
521,148
|
|
222,771
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
80,240
|
|
67,553
|
|
223,745
|
|
198,171
|
|
73,463
|
Profit
sharing
|
|
12,865
|
|
8,469
|
|
28,729
|
|
19,891
|
|
10,469
|
Amortization of
intangible assets
|
|
6,764
|
|
7,897
|
|
20,633
|
|
24,075
|
|
6,934
|
Impairment
charges
|
|
-
|
|
-
|
|
-
|
|
308
|
|
-
|
Operating
income
|
|
188,643
|
|
113,273
|
|
401,480
|
|
278,703
|
|
131,905
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
31,904
|
|
30,970
|
|
92,523
|
|
97,064
|
|
30,050
|
Other expense
(income), net
|
|
22,072
|
|
(1,852)
|
|
19,687
|
|
(4,144)
|
|
(1,754)
|
Income
before income taxes
|
|
134,667
|
|
84,155
|
|
289,270
|
|
185,783
|
|
103,609
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
47,010
|
|
33,065
|
|
101,574
|
|
70,168
|
|
37,268
|
Net
income
|
|
87,657
|
|
51,090
|
|
187,696
|
|
115,615
|
|
66,341
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
|
3,516
|
|
6,396
|
|
14,359
|
|
19,044
|
|
5,962
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Steel Dynamics, Inc.
|
$
|
91,173
|
$
|
57,486
|
$
|
202,055
|
$
|
134,659
|
$
|
72,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
Steel
Dynamics, Inc. stockholders
|
$
|
0.38
|
$
|
0.26
|
$
|
0.88
|
$
|
0.61
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
240,087
|
|
220,926
|
|
229,772
|
|
220,464
|
|
226,220
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
Steel Dynamics, Inc. stockholders, including the effect of assumed
conversions when
dilutive
|
$
|
0.38
|
$
|
0.25
|
$
|
0.85
|
$
|
0.59
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and
equivalents
outstanding (Note 1)
|
|
242,244
|
|
239,001
|
|
241,895
|
|
238,497
|
|
242,048
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.115
|
$
|
0.110
|
$
|
0.345
|
$
|
0.330
|
$
|
0.115
|
Steel Dynamics,
Inc.
|
UNAUDITED
SUPPLEMENTAL OPERATING INFORMATION
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
March
31,
|
|
June
30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
Steel
Operations*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 1,564,112
|
|
$ 1,237,247
|
|
$ 4,125,040
|
|
$ 3,545,097
|
|
$ 1,189,933
|
|
$ 1,370,995
|
|
|
Intra-company
|
|
(112,901)
|
|
(74,818)
|
|
(291,126)
|
|
(230,341)
|
|
(72,334)
|
|
(105,891)
|
|
|
External
|
|
$ 1,451,211
|
|
$ 1,162,429
|
|
$ 3,833,914
|
|
$ 3,314,756
|
|
$ 1,117,599
|
|
$ 1,265,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before amortization of intangibles
|
|
$
202,084
|
|
$
148,698
|
|
$
467,943
|
|
$
358,120
|
|
$
107,776
|
|
$
158,083
|
|
|
Amortization of
intangibles
|
|
(1,968)
|
|
(2,134)
|
|
(6,235)
|
|
(6,710)
|
|
(2,133)
|
|
(2,134)
|
|
Operating income
(Note 1)
|
|
$
200,116
|
|
$
146,564
|
|
$
461,708
|
|
$
351,410
|
|
$
105,643
|
|
$
155,949
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Roll Group -
Butler
|
|
738,460
|
|
740,279
|
|
2,158,200
|
|
2,165,151
|
|
641,520
|
|
778,220
|
|
|
-
Columbus
|
|
174,754
|
|
-
|
|
174,754
|
|
-
|
|
-
|
|
-
|
|
|
- The Techs
|
|
205,417
|
|
176,713
|
|
550,588
|
|
507,067
|
|
153,237
|
|
191,934
|
|
|
Structural and Rail
Division
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural
|
|
306,003
|
|
261,125
|
|
837,064
|
|
712,914
|
|
248,380
|
|
282,681
|
|
|
|
Rail
|
|
59,897
|
|
54,683
|
|
157,532
|
|
170,765
|
|
43,936
|
|
53,699
|
|
|
Engineered Bar
Products Division
|
|
176,891
|
|
127,788
|
|
473,962
|
|
364,528
|
|
144,303
|
|
152,768
|
|
|
Roanoke Bar
Division
|
|
153,395
|
|
144,323
|
|
440,760
|
|
418,274
|
|
143,782
|
|
143,583
|
|
|
Steel of West
Virginia
|
|
85,226
|
|
80,214
|
|
235,681
|
|
238,896
|
|
75,574
|
|
74,881
|
|
|
|
Total
|
|
1,900,043
|
|
1,585,125
|
|
5,028,541
|
|
4,577,595
|
|
1,450,732
|
|
1,677,766
|
|
|
|
Intra-company
|
|
(172,020)
|
|
(121,258)
|
|
(443,063)
|
|
(372,916)
|
|
(112,159)
|
|
(158,884)
|
|
|
|
External
|
|
1,728,023
|
|
1,463,867
|
|
4,585,478
|
|
4,204,679
|
|
1,338,573
|
|
1,518,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Operations
Production (tons)
|
|
1,885,299
|
|
1,612,824
|
|
5,113,117
|
|
4,678,115
|
|
1,519,566
|
|
1,708,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals Recycling
and Ferrous Resources Operations**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 1,111,300
|
|
$
948,134
|
|
$ 3,118,966
|
|
$ 2,755,818
|
|
$
993,505
|
|
$ 1,014,161
|
|
|
Intra-company
|
|
(438,903)
|
|
(342,753)
|
|
(1,225,579)
|
|
(943,817)
|
|
(417,731)
|
|
(368,945)
|
|
|
External
|
|
$
672,397
|
|
$
605,381
|
|
$ 1,893,387
|
|
$ 1,812,001
|
|
$
575,774
|
|
$
645,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss before
amortization of intangibles
|
|
$
(798)
|
|
$
(11,695)
|
|
$
(13,296)
|
|
$
(17,815)
|
|
$
(10,981)
|
|
$
(1,517)
|
|
|
Amortization of
intangibles
|
|
(4,532)
|
|
(5,440)
|
|
(13,606)
|
|
(16,395)
|
|
(4,538)
|
|
(4,536)
|
|
Operating loss (Note
1)
|
|
$
(5,330)
|
|
$
(17,135)
|
|
$
(26,902)
|
|
$
(34,210)
|
|
$
(15,519)
|
|
$
(6,053)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OmniSource
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous metals
shipments (gross tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
1,453,671
|
|
1,472,418
|
|
4,240,901
|
|
4,149,737
|
|
1,364,533
|
|
1,422,697
|
|
|
Intra-company
|
|
(673,640)
|
|
(682,245)
|
|
(2,042,272)
|
|
(1,784,403)
|
|
(714,981)
|
|
(653,651)
|
|
|
External
|
|
780,031
|
|
790,173
|
|
2,198,629
|
|
2,365,334
|
|
649,552
|
|
769,046
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous
metals shipments (thousands of pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
325,436
|
|
263,467
|
|
884,647
|
|
797,618
|
|
270,978
|
|
288,233
|
|
|
Intra-company
|
|
(31,478)
|
|
(4,446)
|
|
(68,830)
|
|
(14,712)
|
|
(19,390)
|
|
(17,962)
|
|
|
External
|
|
293,958
|
|
259,021
|
|
815,817
|
|
782,906
|
|
251,588
|
|
270,271
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mesabi Nugget
shipments (metric tons) - Intra-company
|
|
77,335
|
|
52,234
|
|
147,365
|
|
156,373
|
|
37,488
|
|
32,542
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron Dynamics (metric
tons) - Intra-company
|
|
61,107
|
|
66,674
|
|
182,985
|
|
197,644
|
|
57,122
|
|
64,756
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Fabrication
Operations***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
190,036
|
|
$
119,268
|
|
$
440,749
|
|
$
317,802
|
|
$
115,861
|
|
$
134,852
|
|
|
Intra-company
|
|
(43)
|
|
(134)
|
|
(43)
|
|
(1,276)
|
|
-
|
|
-
|
|
|
External
|
|
$
189,993
|
|
$
119,134
|
|
$
440,706
|
|
$
316,526
|
|
$
115,861
|
|
$
134,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(Note 1)
|
|
$
19,474
|
|
$
3,265
|
|
$
30,190
|
|
$
7,125
|
|
$
3,126
|
|
$
7,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
143,737
|
|
101,590
|
|
343,592
|
|
265,544
|
|
94,667
|
|
105,188
|
|
|
Intra-company
|
|
(28)
|
|
(138)
|
|
(28)
|
|
(932)
|
|
-
|
|
-
|
|
|
External
|
|
143,709
|
|
101,452
|
|
343,564
|
|
264,612
|
|
94,667
|
|
105,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Steel Operations
include the company's five steelmaking divisions and The Techs
three galvanizing plants.
|
|
|
Columbus results are
included since the September 16, 2014 acquisition date.
|
|
**
|
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)
|
|
|
September
30,
2014
|
|
December
31,
2013
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
Cash and
equivalents
|
$
|
159,591
|
|
$
|
395,156
|
Accounts
receivable, net
|
|
1,058,668
|
|
|
720,600
|
Inventories
|
|
1,664,212
|
|
|
1,314,747
|
Deferred
income taxes
|
|
18,402
|
|
|
17,964
|
Other
current
assets
|
|
29,263
|
|
|
25,167
|
Total current
assets
|
|
2,930,136
|
|
|
2,473,634
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
3,420,654
|
|
|
2,226,134
|
|
|
|
|
|
|
Restricted
cash
|
|
18,257
|
|
|
23,827
|
|
|
|
|
|
|
Intangible assets,
net
|
|
406,318
|
|
|
386,159
|
|
|
|
|
|
|
Goodwill
|
|
727,128
|
|
|
731,996
|
|
|
|
|
|
|
Other
assets
|
|
75,790
|
|
|
91,256
|
Total
assets
|
$
|
7,578,283
|
|
$
|
5,933,006
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
Accounts
payable
|
$
|
640,121
|
|
$
|
414,932
|
Income
taxes payable
|
|
26,949
|
|
|
4,023
|
Accrued
expenses
|
|
242,612
|
|
|
214,679
|
Current maturities of long-term debt
|
|
131,858
|
|
|
341,544
|
Total current liabilities
|
|
1,041,540
|
|
|
975,178
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
Senior
term loan
|
|
189,062
|
|
|
220,000
|
Senior
notes
|
|
2,700,000
|
|
|
1,500,000
|
Other
long-term debt
|
|
40,932
|
|
|
46,045
|
Total long-term debt
|
|
2,929,994
|
|
|
1,766,045
|
|
|
|
|
|
|
Deferred income
taxes
|
|
543,838
|
|
|
556,038
|
Other
liabilities
|
|
24,922
|
|
|
23,376
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
126,340
|
|
|
116,514
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
Common
stock
|
|
649
|
|
|
645
|
Treasury
stock, at cost
|
|
(398,818)
|
|
|
(718,529)
|
Additional
paid-in
capital
|
|
1,075,593
|
|
|
1,085,694
|
Retained
earnings
|
|
2,300,660
|
|
|
2,179,513
|
Total Steel Dynamics, Inc. equity
|
|
2,978,084
|
|
|
2,547,323
|
Noncontrolling interests
|
|
(66,435)
|
|
|
(51,468)
|
Total equity
|
|
2,911,649
|
|
|
2,495,855
|
Total liabilities and
equity
|
$
|
7,578,283
|
|
$
|
5,933,006
|
|
Note: The company
completed its acquisition of Severstal Columbus, LLC (Columbus) on
September 16, 2014. The initial purchase price allocation is
preliminarily and subject to adjustments based on final
determination of fair value, asset lives, and amortization methods
of the acquired assets, assumed liabilities and any identified
intangible assets.
|
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
87,657
|
$
|
51,090
|
$
|
187,696
|
$
|
115,615
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
65,957
|
|
58,202
|
|
181,966
|
|
172,089
|
Equity-based compensation
|
|
5,104
|
|
2,515
|
|
15,572
|
|
9,612
|
Deferred income
taxes
|
|
(3,417)
|
|
9,861
|
|
(7,788)
|
|
31,608
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
30,955
|
|
254
|
|
(157,691)
|
|
(130,510)
|
Inventories
|
|
27,212
|
|
(23,648)
|
|
21,088
|
|
10,360
|
Accounts
payable
|
|
9,690
|
|
59,801
|
|
28,116
|
|
52,419
|
Income taxes receivable/payable
|
|
8,062
|
|
16,354
|
|
22,491
|
|
(9,972)
|
Other assets and
liabilities
|
|
18,004
|
|
8,837
|
|
6,541
|
|
(5,530)
|
Net cash provided by operating
activities
|
|
249,224
|
|
183,266
|
|
297,991
|
|
245,691
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
(24,531)
|
|
(52,162)
|
|
(82,906)
|
|
(146,744)
|
Acquisition of business, net of cash acquired
|
|
(1,647,463)
|
|
-
|
|
(1,647,463)
|
|
-
|
Other
investing activities
|
|
2,959
|
|
844
|
|
34,157
|
|
35,641
|
Net cash used in investing activities
|
|
(1,669,035)
|
|
(51,318)
|
|
(1,696,212)
|
|
(111,103)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term
debt
|
|
1,394,497
|
|
9,526
|
|
1,501,895
|
|
418,819
|
Repayment
of current and long-term
debt
|
|
(138,533)
|
|
(4,097)
|
|
(271,191)
|
|
(512,100)
|
Debt
issuance
costs
|
|
(18,020)
|
|
-
|
|
(18,020)
|
|
(6,192)
|
Exercise
of stock options proceeds, including related tax impact
|
|
11,576
|
|
7,925
|
|
22,997
|
|
18,516
|
Contributions from noncontrolling investors, net
|
|
(52)
|
|
5,275
|
|
4,712
|
|
10,972
|
Dividends
paid
|
|
(27,556)
|
|
(24,274)
|
|
(77,737)
|
|
(70,464)
|
Net cash provided by (used in) financing activities
|
|
1,221,912
|
|
(5,645)
|
|
1,162,656
|
|
(140,449)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and
equivalents
|
|
(197,899)
|
|
126,303
|
|
(235,565)
|
|
(5,861)
|
Cash and
equivalents at beginning of period
|
|
357,490
|
|
243,753
|
|
395,156
|
|
375,917
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents at end of period
|
$
|
159,591
|
$
|
370,056
|
$
|
159,591
|
$
|
370,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Cash paid
for interest
|
$
|
40,022
|
$
|
40,075
|
$
|
100,523
|
$
|
107,390
|
Cash paid
for federal and state income taxes, net
|
$
|
41,267
|
$
|
3,022
|
$
|
86,418
|
$
|
41,547
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-third-quarter-2014-diluted-earnings-per-share-of-038-254946785.html
SOURCE Steel Dynamics, Inc.