IRVING, Texas, March 26,
2015 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC)
today announced financial results for its second quarter ended
February 28, 2015. Net earnings attributable to CMC for the
three months ended February 28, 2015 were $54.5 million ($0.46 per diluted share) on net sales of
$1.4 billion. This compares to net
earnings attributable to CMC of $11.1
million ($0.09 per diluted
share) on net sales of $1.6 billion
for the second quarter ended February 28, 2014. Results
for the second quarter of fiscal 2014 included an after-tax charge
of approximately $3.0 million
($0.03 per diluted share) incurred in
connection with the Company's final settlement of the Standard
Iron Works v. Arcelor Mittal, et al. lawsuit.
Earnings from continuing operations for the second quarter of
fiscal 2015 were $61.7 million
($0.52 per diluted share), compared
with earnings from continuing operations of $13.3 million ($0.11 per diluted share) for the second quarter
of fiscal 2014.
Results for the three months ended February 28, 2015
included after-tax LIFO income from continuing operations of
$47.1 million ($0.40 per diluted share), compared with after-tax
LIFO expense from continuing operations of $12.3 million ($0.10 per diluted share) for the second quarter
of fiscal 2014. Adjusted operating profit from continuing
operations was $112.2 million for the
second quarter of fiscal 2015, compared with adjusted operating
profit from continuing operations of $37.0
million for the second quarter of fiscal 2014. Adjusted
EBITDA from continuing operations was $145.1
million for the second quarter of fiscal 2015, compared with
adjusted EBITDA from continuing operations of $69.3 million for the second quarter of fiscal
2014.
The Company's financial position at February 28, 2015
remained strong with cash and cash equivalents of $313.0 million and nearly $1.0 billion in total liquidity. Pursuant to our
share repurchase program that was approved in October 2014, we purchased approximately 2.2
million shares of our common stock for $30.2
million during the second quarter of fiscal 2015.
Joe Alvarado, Chairman of the
Board, President, and CEO, commented, "Second quarter financial
results represented one of our best second fiscal quarters on
record in the Company's history. Our domestic mills benefited from
lower raw material prices as metal margins expanded significantly
when compared to one year ago. We experienced normal seasonal
effects with holidays and weather affecting a number of our
locations' ability to ship as well as some higher operating cost
mainly associated with higher energy cost and curtailments.
Conversely, in Poland competitive
pressures forced margin compression despite reasonably good market
conditions for construction markets in Poland."
On March 25, 2015, the board of directors of CMC declared a
quarterly dividend of $0.12 per share
for shareholders of record on April 9, 2015. The
dividend will be paid on April 23, 2015.
Business Segments
Our Americas Recycling segment recorded adjusted operating loss
of $0.2 million for the second
quarter of fiscal 2015 compared to adjusted operating loss of
$0.9 million for the second quarter
of fiscal 2014. During the second quarter of fiscal 2015, declines
in both average ferrous and nonferrous selling prices of
$90 per short ton and $458 per short ton, respectively, outweighed
declines in the respective average material cost, which compressed
average ferrous and nonferrous metal margins by 20% and 2%,
respectively, compared to the same period in the prior fiscal year.
However, a $1.7 million gain on sale
of assets and a $7.7 million
favorable change in pre-tax LIFO during the second quarter of
fiscal 2015 partially offset the average metal margin pressure
caused by the declines in average ferrous and nonferrous selling
prices compared to the same period in fiscal 2014.
Our Americas Mills segment recorded adjusted operating profit of
$98.5 million for the second quarter
of fiscal 2015 compared to adjusted operating profit of
$44.1 million for the same period in
the prior fiscal year. During the second quarter of fiscal 2015,
the average cost of ferrous scrap consumed declined $66 per short ton, while average selling prices
declined $13 per short ton, which
resulted in a 17% increase in average metal margins compared to the
same period in the prior fiscal year. Additionally, this segment
recorded a $50.7 million favorable
change in pre-tax LIFO compared to the second quarter of fiscal
2014.
Our Americas Fabrication segment recorded adjusted operating
profit of $11.8 million for the
second quarter of fiscal 2015 compared to adjusted operating loss
of $5.3 million for the second
quarter of fiscal 2014. The increase in adjusted operating profit
for the second quarter of fiscal 2015 was primarily due to average
rebar selling prices increasing at a faster rate than rising
average material cost, which resulted in a 5% increase in average
rebar metal margin compared to the same period in the prior fiscal
year. Additionally, for the second quarter of fiscal 2015, this
segment recorded a favorable change in pre-tax LIFO of $22.0 million compared to the same period in
fiscal 2014.
Our International Mill segment recorded adjusted operating
profit of $0.8 million for the second
quarter of fiscal 2015 compared to adjusted operating profit of
$8.3 million for the same period in
the prior fiscal year. The decrease in adjusted operating profit
for the second quarter of fiscal 2015 was due to a 19% decrease in
average metal margins on flat volumes compared to the same period
in the prior fiscal year. Average metal margin compression for the
three months ended February 28, 2015 was the result of a
$147 per short ton decrease in
average selling prices, which outpaced a $99 per short ton decrease in average cost of
ferrous scrap consumed compared to the same period in fiscal
2014.
Our International Marketing and Distribution segment recorded
adjusted operating profit of $15.7
million for the second quarter of fiscal 2015 compared to
adjusted operating profit of $4.5
million for the same period in the prior fiscal year. The
improvement in adjusted operating profit for the second quarter of
fiscal 2015 was attributed to an increase in volumes for one of our
trading divisions headquartered in the U.S., which more than offset
average margin compression at this same division. In addition, for
the second quarter of fiscal 2015, one of our trading divisions
headquartered in the U.S. recorded a favorable change in pre-tax
LIFO of $11.1 million compared to the
same period in fiscal 2014.
Year to Date Results
Net earnings attributable to CMC for the six months ended
February 28, 2015 were $90.7
million ($0.77 per diluted
share) on net sales of $3.1 billion,
compared with net earnings attributable to CMC of $57.1 million ($0.48 per diluted share) on net sales of
$3.2 billion for the six months ended
February 28, 2014. The Company recorded after-tax LIFO income
of $51.1 million ($0.43 per diluted share) for the six months ended
February 28, 2015, compared with after-tax LIFO expense of
$15.1 million ($0.13 per diluted share) for the six months ended
February 28, 2014. Additionally, results for the six months
ended February 28, 2014 included an after-tax gain of
$15.5 million ($0.13 per diluted share) associated with the sale
of the Company's wholly owned copper tube manufacturing operation,
Howell Metal Company. For the six months ended February 28,
2015, adjusted operating profit was $176.9
million, compared with $125.2
million for the six months ended February 28, 2014.
Adjusted EBITDA was $242.6 million
for the six months ended February 28, 2015, compared with
$192.2 million for the six months
ended February 28, 2014.
Outlook
Alvarado concluded, "Our third fiscal quarter is the start of
the spring construction season, and we are carrying healthy
backlogs entering the busy time of the year for construction
markets. Elevated levels of imports supported by a strong dollar
and excess global supply remain our top challenges. The effects of
lower oil prices are starting to translate into slower demand for
certain raw materials and steel related products that flow through
our International Marketing and Distribution segment. Demand
remains quite good in Poland while
competitive pressures will continue to constrain margins."
Conference Call
CMC invites you to listen to a live broadcast of its second
quarter of fiscal 2015 conference call today, Thursday,
March 26, 2015, at 11:00 a.m.
ET. Joe Alvarado,
Chairman of the Board, President and CEO, and Barbara Smith, Senior Vice President and CFO,
will host the call. The call is accessible via our website at
www.cmc.com. In the event you are unable to listen to the
live broadcast, the call will be archived and available for replay
on our website on the next business day. Financial and
statistical information presented in the webcast will be located on
CMC's website under "Investors."
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and market steel and metal products, related materials and
services through a network including steel minimills, steel
fabrication and processing plants, construction-related product
warehouses, metal recycling facilities and marketing and
distribution offices in the United
States and in strategic international markets.
Forward-Looking Statements
This news release contains forward-looking statements regarding
the Company's expectations relating to economic conditions, prices,
volumes and the Company's operating plans. These
forward-looking statements generally can be identified by phrases
such as we, CMC or its management, "expects," "anticipates,"
"believes," "estimates," "intends," "plans to," "ought," "could,"
"will," "should," "likely," "appears" or other similar words or
phrases. There are inherent risks and uncertainties in any
forward-looking statements. Although we believe that our
expectations are reasonable, we can give no assurance that these
expectations will prove to have been correct, and actual results
may vary materially. Except as required by law, the Company
undertakes no obligation to update, amend or clarify any
forward-looking statements to reflect events, new information or
otherwise.
Actual results may differ materially from those projected as a
result of certain risks and uncertainties, including, but not
limited to, the following: absence of global economic recovery or
possible recession relapse and the pace of overall global economic
activity and its impact in a highly cyclical industry; construction
activity or lack thereof; continued sovereign debt problems in the
Euro-zone; success or failure of governmental efforts to stimulate
the economy including restoring credit availability and confidence
in a recovery; significant reductions in China's steel consumption or increased Chinese
steel production; rapid and significant changes in the price of
metals; increased capacity and product availability from competing
steel minimills and other steel suppliers including import
quantities and pricing; passage of new, or interpretation of
existing, environmental laws and regulations; increased legislation
associated with climate change and greenhouse gas emissions;
solvency of financial institutions and their ability or willingness
to lend; customers' inability to obtain credit and non-compliance
with contracts; financial covenants and restrictions on the
operation of our business contained in agreements governing our
debt; currency fluctuations; global factors including political and
military uncertainties; availability of electricity and natural gas
for minimill operations; information technology interruptions and
breaches in security data; ability to retain key executives;
execution of cost reduction strategies; industry consolidation or
changes in production capacity or utilization; ability to make
necessary capital expenditures; availability and pricing of raw
materials over which we exert little influence, including scrap
metal, energy, insurance and supply prices; unexpected equipment
failures; competition from other materials; losses or limited
potential gains due to hedging transactions; litigation claims and
settlements, court decisions and regulatory rulings; risk of injury
or death to employees, customers or other visitors to our
operations; increased costs related to health care reform
legislation; and those factors listed under Item 1A. "Risk Factors"
included in the Company's Annual Report filed on Form 10-K for the
fiscal year ended August 31, 2014.
COMMERCIAL METALS
COMPANY
OPERATING
STATISTICS AND BUSINESS SEGMENTS (UNAUDITED)
|
|
|
|
Three Months Ended
February 28,
|
|
Six Months Ended
February 28,
|
(short tons in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Americas Recycling
tons shipped
|
|
508
|
|
|
573
|
|
|
1,060
|
|
|
1,132
|
|
|
|
|
|
|
|
|
|
|
Americas Steel Mills
rebar shipments
|
|
354
|
|
|
340
|
|
|
788
|
|
|
731
|
|
Americas Steel Mills
merchant and other shipments
|
|
252
|
|
|
291
|
|
|
541
|
|
|
576
|
|
Total Americas
Steel Mills tons shipped
|
|
606
|
|
|
631
|
|
|
1,329
|
|
|
1,307
|
|
|
|
|
|
|
|
|
|
|
Americas Steel Mills
average FOB selling price (total sales)
|
|
$
|
662
|
|
|
$
|
675
|
|
|
$
|
674
|
|
|
$
|
666
|
|
Americas Steel Mills
average cost ferrous scrap consumed
|
|
$
|
302
|
|
|
$
|
368
|
|
|
$
|
319
|
|
|
$
|
351
|
|
Americas Steel
Mills metal margin
|
|
$
|
360
|
|
|
$
|
307
|
|
|
$
|
355
|
|
|
$
|
315
|
|
Americas Steel Mills
average ferrous scrap purchase price
|
|
$
|
247
|
|
|
$
|
322
|
|
|
$
|
268
|
|
|
$
|
310
|
|
|
|
|
|
|
|
|
|
|
International Mill
tons shipped
|
|
271
|
|
|
271
|
|
|
576
|
|
|
631
|
|
|
|
|
|
|
|
|
|
|
International Mill
average FOB selling price (total sales)
|
|
$
|
481
|
|
|
$
|
628
|
|
|
$
|
515
|
|
|
$
|
614
|
|
International Mill
average cost ferrous scrap consumed
|
|
$
|
276
|
|
|
$
|
375
|
|
|
$
|
296
|
|
|
$
|
363
|
|
International Mill
metal margin
|
|
$
|
205
|
|
|
$
|
253
|
|
|
$
|
219
|
|
|
$
|
251
|
|
International Mill
average ferrous scrap purchase price
|
|
$
|
229
|
|
|
$
|
315
|
|
|
$
|
247
|
|
|
$
|
308
|
|
|
|
|
|
|
|
|
|
|
Americas Fabrication
rebar tons shipped
|
|
207
|
|
|
203
|
|
|
472
|
|
|
437
|
|
Americas Fabrication
structural and post tons shipped
|
|
35
|
|
|
37
|
|
|
69
|
|
|
70
|
|
Total Americas
Fabrication tons shipped
|
|
242
|
|
|
240
|
|
|
541
|
|
|
507
|
|
|
|
|
|
|
|
|
|
|
Americas Fabrication
average selling price (excluding stock and buyout sales)
|
|
$
|
952
|
|
|
$
|
942
|
|
|
$
|
949
|
|
|
$
|
928
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Three Months Ended
February 28,
|
|
Six Months Ended
February 28,
|
Net
sales
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Americas
Recycling
|
|
$
|
259,079
|
|
|
$
|
342,267
|
|
|
$
|
575,138
|
|
|
$
|
680,470
|
|
Americas
Mills
|
|
428,845
|
|
|
456,849
|
|
|
953,696
|
|
|
938,000
|
|
Americas
Fabrication
|
|
344,410
|
|
|
325,890
|
|
|
756,898
|
|
|
684,108
|
|
International
Mill
|
|
138,449
|
|
|
181,362
|
|
|
316,078
|
|
|
410,512
|
|
International
Marketing and Distribution
|
|
465,238
|
|
|
520,171
|
|
|
1,003,044
|
|
|
965,512
|
|
Corporate
|
|
2,717
|
|
|
5,166
|
|
|
3,549
|
|
|
11,351
|
|
Eliminations
|
|
(247,621)
|
|
|
(234,244)
|
|
|
(537,296)
|
|
|
(475,417)
|
|
Total net
sales
|
|
$
|
1,391,117
|
|
|
$
|
1,597,461
|
|
|
$
|
3,071,107
|
|
|
$
|
3,214,536
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit (loss)
|
|
|
|
|
|
|
|
|
Americas
Recycling
|
|
$
|
(172)
|
|
|
$
|
(863)
|
|
|
$
|
(1,315)
|
|
|
$
|
(24)
|
|
Americas
Mills
|
|
98,489
|
|
|
44,062
|
|
|
173,871
|
|
|
109,876
|
|
Americas
Fabrication
|
|
11,773
|
|
|
(5,330)
|
|
|
8,764
|
|
|
(3,113)
|
|
International
Mill
|
|
819
|
|
|
8,331
|
|
|
5,042
|
|
|
23,600
|
|
International
Marketing and Distribution
|
|
15,678
|
|
|
4,487
|
|
|
33,930
|
|
|
6,529
|
|
Corporate
|
|
(16,400)
|
|
|
(15,064)
|
|
|
(36,011)
|
|
|
(33,113)
|
|
Eliminations
|
|
2,037
|
|
|
1,422
|
|
|
1,232
|
|
|
2,018
|
|
Adjusted operating
profit from continuing operations
|
|
112,224
|
|
|
37,045
|
|
|
185,513
|
|
|
105,773
|
|
Adjusted operating
profit (loss) from discontinued operations
|
|
(6,913)
|
|
|
(1,893)
|
|
|
(8,576)
|
|
|
19,413
|
|
Adjusted operating
profit
|
|
$
|
105,311
|
|
|
$
|
35,152
|
|
|
$
|
176,937
|
|
|
$
|
125,186
|
|
COMMERCIAL METALS
COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
|
|
|
|
Three Months Ended
February 28,
|
|
Six Months Ended
February 28,
|
(in thousands,
except share data)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
1,391,117
|
|
|
$
|
1,597,461
|
|
|
$
|
3,071,107
|
|
|
$
|
3,214,536
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
1,169,703
|
|
|
1,455,105
|
|
|
2,663,472
|
|
|
2,895,307
|
|
Selling, general and
administrative expenses
|
|
109,602
|
|
|
106,258
|
|
|
222,985
|
|
|
214,932
|
|
Interest
expense
|
|
19,252
|
|
|
18,977
|
|
|
38,309
|
|
|
38,385
|
|
|
|
1,298,557
|
|
|
1,580,340
|
|
|
2,924,766
|
|
|
3,148,624
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
92,560
|
|
|
17,121
|
|
|
146,341
|
|
|
65,912
|
|
Income
taxes
|
|
30,841
|
|
|
3,866
|
|
|
46,288
|
|
|
18,957
|
|
Earnings from
continuing operations
|
|
61,719
|
|
|
13,255
|
|
|
100,053
|
|
|
46,955
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations before income taxes
|
|
(7,268)
|
|
|
(2,095)
|
|
|
(9,370)
|
|
|
19,011
|
|
Income taxes
(benefit)
|
|
—
|
|
|
16
|
|
|
(21)
|
|
|
8,903
|
|
Earnings (loss) from
discontinued operations
|
|
(7,268)
|
|
|
(2,111)
|
|
|
(9,349)
|
|
|
10,108
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
54,451
|
|
|
11,144
|
|
|
90,704
|
|
|
57,063
|
|
Less net earnings
(loss) attributable to noncontrolling interests
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Net earnings
attributable to CMC
|
|
$
|
54,451
|
|
|
$
|
11,143
|
|
|
$
|
90,704
|
|
|
$
|
57,062
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to CMC:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
$
|
0.53
|
|
|
$
|
0.11
|
|
|
$
|
0.85
|
|
|
$
|
0.40
|
|
Earnings (loss) from
discontinued operations
|
|
(0.06)
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
0.09
|
|
Net
earnings
|
|
$
|
0.47
|
|
|
$
|
0.09
|
|
|
$
|
0.77
|
|
|
$
|
0.49
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to CMC:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
$
|
0.52
|
|
|
$
|
0.11
|
|
|
$
|
0.85
|
|
|
$
|
0.40
|
|
Earnings (loss) from
discontinued operations
|
|
(0.06)
|
|
|
(0.02)
|
|
|
(0.08)
|
|
|
0.08
|
|
Net
earnings
|
|
$
|
0.46
|
|
|
$
|
0.09
|
|
|
$
|
0.77
|
|
|
$
|
0.48
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.24
|
|
|
$
|
0.24
|
|
Average basic shares
outstanding
|
|
116,688,162
|
|
|
117,424,962
|
|
|
117,244,406
|
|
|
117,247,731
|
|
Average diluted
shares outstanding
|
|
117,683,476
|
|
|
118,639,161
|
|
|
118,395,844
|
|
|
118,397,886
|
|
COMMERCIAL METALS
COMPANY
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
|
(in
thousands)
|
|
February
28,
2015
|
|
August
31,
2014
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
313,001
|
|
|
$
|
434,925
|
|
Accounts receivable,
net
|
|
898,127
|
|
|
1,028,425
|
|
Inventories,
net
|
|
1,088,194
|
|
|
935,411
|
|
Current deferred tax
assets
|
|
32,120
|
|
|
49,455
|
|
Other current
assets
|
|
100,261
|
|
|
105,575
|
|
Assets of businesses
held for sale
|
|
82,281
|
|
|
—
|
|
Total current
assets
|
|
2,513,984
|
|
|
2,553,791
|
|
Net property, plant
and equipment
|
|
875,442
|
|
|
925,098
|
|
Goodwill
|
|
73,763
|
|
|
74,319
|
|
Other noncurrent
assets
|
|
126,313
|
|
|
135,312
|
|
Total
assets
|
|
$
|
3,589,502
|
|
|
$
|
3,688,520
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable-trade
|
|
$
|
298,611
|
|
|
$
|
423,807
|
|
Accounts
payable-documentary letters of credit
|
|
247,027
|
|
|
125,053
|
|
Accrued expenses and
other payables
|
|
240,535
|
|
|
322,000
|
|
Notes
payable
|
|
5,142
|
|
|
12,288
|
|
Current maturities of
long-term debt
|
|
9,113
|
|
|
8,005
|
|
Liabilities of
businesses held for sale
|
|
35,785
|
|
|
—
|
|
Total current
liabilities
|
|
836,213
|
|
|
891,153
|
|
Deferred income
taxes
|
|
56,197
|
|
|
55,600
|
|
Other long-term
liabilities
|
|
104,343
|
|
|
112,134
|
|
Long-term
debt
|
|
1,281,310
|
|
|
1,281,042
|
|
Total
liabilities
|
|
2,278,063
|
|
|
2,339,929
|
|
Stockholders' equity
attributable to CMC
|
|
1,311,290
|
|
|
1,348,480
|
|
Stockholders' equity
attributable to noncontrolling interests
|
|
149
|
|
|
111
|
|
Total stockholders'
equity
|
|
1,311,439
|
|
|
1,348,591
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,589,502
|
|
|
$
|
3,688,520
|
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
|
Six Months Ended
February 28,
|
(in
thousands)
|
|
2015
|
|
2014
|
Cash flows from (used
by) operating activities:
|
|
|
|
|
Net
earnings
|
|
$
|
90,704
|
|
|
$
|
57,063
|
|
Adjustments to
reconcile net earnings to cash flows from (used by) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
66,988
|
|
|
67,284
|
|
Provision for losses
on receivables, net
|
|
1,271
|
|
|
(1,871)
|
|
Stock-based
compensation
|
|
11,822
|
|
|
10,788
|
|
Amortization of
interest rate swaps termination gain
|
|
(3,799)
|
|
|
(3,799)
|
|
Deferred income
taxes
|
|
20,401
|
|
|
18,550
|
|
Tax benefits from
stock plans
|
|
(46)
|
|
|
(484)
|
|
Net gain on sale of a
subsidiary and other
|
|
(2,014)
|
|
|
(28,046)
|
|
Write-down of
inventory
|
|
1,926
|
|
|
—
|
|
Asset
impairment
|
|
149
|
|
|
1,227
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
138,132
|
|
|
20,195
|
|
Accounts receivable
sold, net
|
|
(50,329)
|
|
|
149,832
|
|
Inventories
|
|
(252,430)
|
|
|
(214,318)
|
|
Other
assets
|
|
3,632
|
|
|
(14,314)
|
|
Accounts payable,
accrued expenses and other payables
|
|
(160,628)
|
|
|
(21,861)
|
|
Other long-term
liabilities
|
|
(5,063)
|
|
|
(3,863)
|
|
Net cash flows from
(used by) operating activities
|
|
(139,284)
|
|
|
36,383
|
|
|
|
|
|
|
Cash flows from (used
by) investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(49,498)
|
|
|
(36,223)
|
|
Proceeds from the
sale of property, plant and equipment and other
|
|
8,273
|
|
|
6,381
|
|
Proceeds from the
sale of a subsidiary
|
|
2,354
|
|
|
52,276
|
|
Net cash flows from
(used by) investing activities
|
|
(38,871)
|
|
|
22,434
|
|
|
|
|
|
|
Cash flows from (used
by) financing activities:
|
|
|
|
|
Documentary letters
of credit, net change
|
|
137,548
|
|
|
4,767
|
|
Short-term
borrowings, net change
|
|
(7,146)
|
|
|
2,565
|
|
Repayments on
long-term debt
|
|
(5,348)
|
|
|
(3,143)
|
|
Stock issued under
incentive and purchase plans, net of forfeitures
|
|
(1,377)
|
|
|
(740)
|
|
Treasury stock
acquired
|
|
(39,580)
|
|
|
—
|
|
Cash
dividends
|
|
(28,184)
|
|
|
(28,160)
|
|
Tax benefits from
stock plans
|
|
46
|
|
|
484
|
|
Decrease in
restricted cash
|
|
3,868
|
|
|
18,305
|
|
Contribution from
(purchase of) noncontrolling interests
|
|
38
|
|
|
(37)
|
|
Payments for debt
issuance costs
|
|
—
|
|
|
(430)
|
|
Net cash flows from
(used by) financing activities
|
|
59,865
|
|
|
(6,389)
|
|
Effect of exchange
rate changes on cash
|
|
(3,634)
|
|
|
556
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(121,924)
|
|
|
52,984
|
|
Cash and cash
equivalents at beginning of year
|
|
434,925
|
|
|
378,770
|
|
Cash and cash
equivalents at end of period
|
|
$
|
313,001
|
|
|
$
|
431,754
|
|
Supplemental
information:
|
|
|
|
|
Noncash
activities:
|
|
|
|
|
Capital lease
additions and changes in accounts payable related to purchases of
property, plant and equipment
|
|
$
|
7,519
|
|
|
$
|
10,075
|
|
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
(dollars in thousands)
This press release contains financial measures not derived in
accordance with generally accepted accounting principles ("GAAP").
Reconciliations to the most comparable GAAP measures are provided
below.
Adjusted Operating Profit is a non-GAAP financial
measure. Management uses adjusted operating profit to evaluate the
financial performance of CMC. Adjusted operating profit from
continuing operations is the sum of our earnings from continuing
operations before income taxes, interest expense and discounts on
sales of accounts receivable. Adjusted operating profit is the sum
of adjusted operating profit from continuing operations and
adjusted operating profit (loss) from discontinued operations. For
added flexibility, we may sell certain trade accounts receivable
both in the U.S. and internationally. We consider sales of accounts
receivable as an alternative source of liquidity to finance our
operations, and we believe that removing these costs provides a
clearer perspective of CMC's operating performance. Adjusted
operating profit may be inconsistent with similar measures
presented by other companies.
|
|
Three Months Ended
February 28,
|
|
Six Months Ended
February 28,
|
(in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings from
continuing operations
|
|
$
|
61,719
|
|
|
$
|
13,255
|
|
|
$
|
100,053
|
|
|
$
|
46,955
|
|
Income
taxes
|
|
30,841
|
|
|
3,866
|
|
|
46,288
|
|
|
18,957
|
|
Interest
expense
|
|
19,252
|
|
|
18,977
|
|
|
38,309
|
|
|
38,385
|
|
Discounts on sales of
accounts receivable
|
|
412
|
|
|
947
|
|
|
863
|
|
|
1,476
|
|
Adjusted operating
profit from continuing operations
|
|
112,224
|
|
|
37,045
|
|
|
185,513
|
|
|
105,773
|
|
Adjusted operating
profit (loss) from discontinued operations
|
|
(6,913)
|
|
|
(1,893)
|
|
|
(8,576)
|
|
|
19,413
|
|
Adjusted operating
profit
|
|
$
|
105,311
|
|
|
$
|
35,152
|
|
|
$
|
176,937
|
|
|
$
|
125,186
|
|
Adjusted EBITDA is a non-GAAP financial measure. Adjusted
EBITDA from continuing operations is the sum of our earnings from
continuing operations before net (earnings) loss attributable to
noncontrolling interests, interest expense and income taxes. It
also excludes CMC's largest recurring non-cash charge, depreciation
and amortization, as well as impairment charges, which are also
non-cash. Adjusted EBITDA is the sum of adjusted EBITDA from
continuing operations and adjusted EBITDA from discontinued
operations. Adjusted EBITDA should not be considered as an
alternative to net earnings or as a better measure of liquidity
than net cash flows from operating activities, as determined by
GAAP. However, we believe that adjusted EBITDA provides relevant
and useful information, which is often used by analysts, creditors
and other interested parties in our industry. Adjusted EBITDA to
interest expense is a covenant test in certain of CMC's debt
agreements. Adjusted EBITDA is also the target benchmark for our
annual and long-term cash incentive performance plans for
management. Adjusted EBITDA may be inconsistent with similar
measures presented by other companies.
|
|
Three Months Ended
February 28,
|
|
Six Months Ended
February 28,
|
(in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings from
continuing operations
|
|
$
|
61,719
|
|
|
$
|
13,255
|
|
|
$
|
100,053
|
|
|
$
|
46,955
|
|
Net earnings
attributable to noncontrolling interests
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
Interest
expense
|
|
19,252
|
|
|
18,977
|
|
|
38,309
|
|
|
38,385
|
|
Income
taxes
|
|
30,841
|
|
|
3,866
|
|
|
46,288
|
|
|
18,957
|
|
Depreciation and
amortization
|
|
33,130
|
|
|
33,078
|
|
|
66,713
|
|
|
66,391
|
|
Impairment
charges
|
|
149
|
|
|
154
|
|
|
149
|
|
|
905
|
|
Adjusted EBITDA from
continuing operations
|
|
145,091
|
|
|
69,329
|
|
|
251,512
|
|
|
171,592
|
|
Adjusted EBITDA from
discontinued operations
|
|
(7,178)
|
|
|
(1,479)
|
|
|
(8,878)
|
|
|
20,598
|
|
Adjusted
EBITDA
|
|
$
|
137,913
|
|
|
$
|
67,850
|
|
|
$
|
242,634
|
|
|
$
|
192,190
|
|
Adjusted EBITDA to interest coverage for the quarter ended
February 28, 2015:
Total Liquidity is a non-GAAP financial measure. The
table below reflects the Company's cash and cash equivalents,
credit facilities and availability to liquidity at
February 28, 2015.
(in
thousands)
|
|
Total
Facility
|
|
Availability
|
Cash and cash
equivalents
|
|
$
|
313,001
|
|
|
$
|
313,001
|
|
Revolving credit
facility
|
|
350,000
|
|
|
326,555
|
|
U.S. receivables sale
facility
|
|
200,000
|
|
|
160,000
|
|
International
accounts receivable sales facilities
|
|
93,648
|
|
|
38,483
|
|
Bank credit
facilities — uncommitted
|
|
90,027
|
|
|
89,217
|
|
Total
Liquidity
|
|
$
|
1,046,676
|
|
|
$
|
927,256
|
|
Total Capitalization:
Total capitalization is the sum of stockholders' equity
attributable to CMC, long-term debt and deferred income taxes. The
ratio of debt to total capitalization is a measure of current debt
leverage. The following reconciles total capitalization to the most
comparable GAAP measure, stockholders' equity attributable to
CMC:
(in
thousands)
|
|
February 28,
2015
|
Stockholders' equity
attributable to CMC
|
|
$
|
1,311,290
|
|
Long-term
debt
|
|
1,281,310
|
|
Deferred income
taxes
|
|
56,197
|
|
Total
capitalization
|
|
$
|
2,648,797
|
|
OTHER FINANCIAL INFORMATION
Long-term debt to capitalization ratio as of
February 28, 2015:
$1,281,310
|
/
|
$2,648,797
|
=
|
48.4%
|
Total debt to capitalization plus short-term debt plus notes
payable ratio as of February 28, 2015:
(
|
$1,281,310
|
+
|
$9,113
|
+
|
$5,142)
|
|
/
|
(
|
$2,648,797
|
+
|
$9,113
|
+
|
$5,142)
|
|
=
|
48.6%
|
Current ratio as of February 28, 2015:
Current assets divided by current liabilities
$2,513,984
|
/
|
$836,213
|
=
|
3.0
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/commercial-metals-company-reports-second-quarter-earnings-per-share-of-046-earnings-per-share-from-continuing-operations-of-052-and-announces-quarterly-dividend-of-012-per-share-300056311.html
SOURCE Commercial Metals Company