IRVING, Texas, June 25,
2015 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC)
today announced financial results for its third quarter ended
May 31, 2015. Net earnings attributable to CMC for the three
months ended May 31, 2015 were $56.7
million ($0.49 per diluted
share) on net sales of $1.5 billion.
This compares to net earnings attributable to CMC of $23.6 million ($0.20 per diluted share) on net sales of
$1.7 billion for the third quarter
ended May 31, 2014.
Earnings from continuing operations for the third quarter of
fiscal 2015 were $67.1 million
($0.58 per diluted share), compared
with earnings from continuing operations of $24.5 million ($0.21 per diluted share) for the third quarter of
fiscal 2014.
Joe Alvarado, Chairman of the
Board, President, and CEO, commented, "Fiscal third quarter
adjusted EBITDA from continuing operations represents our highest
adjusted EBITDA since the first quarter of fiscal 2009. Our
domestic mills continued to benefit from expanding metal margins as
a result of lower raw material prices when compared to one year
ago. Although shipments from a number of our locations in the
central and eastern regions of the U.S. were delayed as a result of
record amounts of rainfall in Texas and the surrounding states in the latter
part of our third quarter, we are confident in our expectation that
U.S. construction activity will continue to improve during the
summer months translating into strong activity levels within our
domestic business."
Results for the three months ended May 31, 2015 included
after-tax LIFO income from continuing operations of $24.1 million ($0.21 per diluted share), compared with after-tax
LIFO income from continuing operations of $5.3 million ($0.04
per diluted share) for the third quarter of fiscal 2014. Adjusted
operating profit from continuing operations was $126.0 million for the third quarter of fiscal
2015, our highest adjusted operating profit since the first quarter
of fiscal 2009. This compares with adjusted operating profit from
continuing operations of $58.1
million for the third quarter of fiscal 2014. Adjusted
EBITDA from continuing operations was $158.5
million for the third quarter of fiscal 2015, compared with
adjusted EBITDA from continuing operations of $90.4 million for the third quarter of fiscal
2014.
The Company's financial position at May 31, 2015 remained
strong with cash and cash equivalents of $381.0 million and approximately $1.0 billion in total liquidity. Pursuant to our
share repurchase program that was approved in October 2014, we purchased approximately 139
thousand shares of our common stock for $2.2
million during the third quarter of fiscal 2015.
On June 24, 2015, the board of directors of CMC declared a
quarterly dividend of $0.12 per share
for shareholders of record on July 9, 2015. The dividend
will be paid on July 23, 2015.
Business Segments
Our Americas Recycling segment recorded adjusted operating loss
of $2.0 million for the third quarter
of fiscal 2015 compared to adjusted operating loss of $1.1 million for the third quarter of fiscal
2014. During the third quarter of fiscal 2015, ferrous volumes
declined 23% on flat average ferrous metal margins compared to the
corresponding period in fiscal 2014. Additionally, during the third
quarter of fiscal 2015, average nonferrous selling prices declined
13%, which outweighed a decline in average nonferrous material cost
and compressed average nonferrous metal margins by 16%, further
contributing to the increase in adjusted operating loss compared to
the third quarter of fiscal 2014.
Our Americas Mills segment recorded adjusted operating profit of
$84.2 million for the third quarter
of fiscal 2015 compared to adjusted operating profit of
$74.1 million for the corresponding
period in the prior fiscal year. During the third quarter of fiscal
2015, the average cost of ferrous scrap consumed decreased
$105 per short ton, which more than
offset a $71 per short ton decrease
in the average selling price and resulted in a 10% increase in
average metal margin compared to the third quarter of fiscal 2014.
Additionally, this segment benefited from a $13.9 million favorable change in pre-tax LIFO
compared to the third quarter of fiscal 2014.
Our Americas Fabrication segment recorded adjusted operating
profit of $22.9 million for the third
quarter of fiscal 2015 and represented this segment's best fiscal
quarter since the first quarter of fiscal 2009. This compares to
adjusted operating profit of $1.2
million for the third quarter of fiscal 2014. The increase
in adjusted operating profit for the third quarter of fiscal 2015
was partially due to an increase in the average composite selling
price coupled with a 3% decrease in average composite material
cost, which resulted in a 24% increase in average metal margin
compared to the corresponding period in the prior fiscal year.
Heavy rainfall during May 2015
delayed construction activity in the central and eastern regions of
the U.S. and pushed scheduled shipments into our fiscal 2015 fourth
quarter. As a result, we expect to see an increase in this
segment's volumes as these shipments will be fulfilled during the
fourth quarter of fiscal 2015.
Our International Mill segment recorded adjusted operating
profit of $6.1 million for the third
quarter of fiscal 2015 compared to adjusted operating profit of
$2.0 million for the corresponding
period in fiscal 2014 and $0.8
million for the second quarter of fiscal 2015. Adjusted
operating profit for the third quarter of fiscal 2015 increased as
we continued to realize the benefits from the commissioning of a
new, state-of-the art electric arc furnace in the third quarter of
fiscal 2014.
Our International Marketing and Distribution segment recorded
adjusted operating profit of $37.7
million for the third quarter of fiscal 2015 compared to
adjusted operating profit of $2.0
million for the same period in the prior fiscal year. The
increase in adjusted operating profit for the third quarter of
fiscal 2015 compared to the third quarter of fiscal 2014 was
attributed to an increase in volumes for one of our trading
divisions headquartered in the U.S. Additionally, this segment
recorded a $36.4 million net benefit
as a result of a termination of a contract with a customer,
partially offset by inventory write-downs, in the third quarter of
fiscal 2015. In addition, for the third quarter of fiscal 2015, one
of our trading divisions headquartered in the U.S. benefited from a
favorable change in pre-tax LIFO of $9.0
million compared to the corresponding period in fiscal
2014.
Year to Date Results
Net earnings attributable to CMC for the nine months ended
May 31, 2015 were $147.4 million
($1.25 per diluted share) on net
sales of $4.6 billion, compared with
net earnings attributable to CMC of $80.6
million ($0.68 per diluted
share) on net sales of $5.0 billion
for the nine months ended May 31, 2014. The Company recorded
after-tax LIFO income of $75.2
million ($0.64 per diluted
share) for the nine months ended May 31, 2015, compared with
after-tax LIFO expense of $9.7
million ($0.08 per diluted
share) for the nine months ended May 31, 2014. Additionally,
results for the nine months ended May 31, 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 nine months
ended May 31, 2015, adjusted operating profit was $292.3 million, compared with $182.4 million for the nine months ended
May 31, 2014. Adjusted EBITDA was $393.5 million for the nine months ended
May 31, 2015, compared with $282.2
million for the nine months ended May 31, 2014.
Outlook
Alvarado concluded, "As we enter our fiscal fourth quarter, our
key market indicators point toward a strong finish to our fiscal
2015. The demand for our finished steel products in the U.S. and
Poland remains high. Additionally,
unfavorable weather in May in the central region of the U.S.
resulted in certain construction projects being pushed out into our
fiscal fourth quarter, which we expect should provide some upside
to the fourth quarter's results. Elevated levels of imports
continue to pressure margins for our U.S. and Polish operations.
Our International Marketing and Distribution segment also continues
to be challenged by the strong U.S. dollar."
Conference Call
CMC invites you to listen to a live broadcast of its third
quarter of fiscal 2015 conference call today, Thursday,
June 25, 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 U.S. construction activity,
economic conditions, prices, volumes and the Company's operating
plans and future financial results. 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 changed assumptions, the occurrence of
anticipated or unanticipated events, new information or
circumstances 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
May 31,
|
|
Nine Months Ended
May 31,
|
(short tons in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Americas Recycling
tons shipped
|
|
471
|
|
|
596
|
|
|
1,531
|
|
|
1,728
|
|
|
|
|
|
|
|
|
|
|
Americas Steel Mills
rebar shipments
|
|
421
|
|
|
424
|
|
|
1,209
|
|
|
1,155
|
|
Americas Steel Mills
merchant and other shipments
|
|
252
|
|
|
310
|
|
|
793
|
|
|
886
|
|
Total Americas
Steel Mills tons shipped
|
|
673
|
|
|
734
|
|
|
2,002
|
|
|
2,041
|
|
|
|
|
|
|
|
|
|
|
Americas Steel Mills
average FOB selling price (total sales)
|
|
$
|
612
|
|
|
$
|
683
|
|
|
$
|
653
|
|
|
$
|
672
|
|
Americas Steel Mills
average cost ferrous scrap consumed
|
|
$
|
244
|
|
|
$
|
349
|
|
|
$
|
294
|
|
|
$
|
350
|
|
Americas Steel
Mills metal margin
|
|
$
|
368
|
|
|
$
|
334
|
|
|
$
|
359
|
|
|
$
|
322
|
|
Americas Steel Mills
average ferrous scrap purchase price
|
|
$
|
204
|
|
|
$
|
275
|
|
|
$
|
249
|
|
|
$
|
298
|
|
|
|
|
|
|
|
|
|
|
International Mill
tons shipped
|
|
323
|
|
|
322
|
|
|
898
|
|
|
953
|
|
|
|
|
|
|
|
|
|
|
International Mill
average FOB selling price (total sales)
|
|
$
|
455
|
|
|
$
|
610
|
|
|
$
|
493
|
|
|
$
|
613
|
|
International Mill
average cost ferrous scrap consumed
|
|
$
|
258
|
|
|
$
|
345
|
|
|
$
|
283
|
|
|
$
|
357
|
|
International Mill
metal margin
|
|
$
|
197
|
|
|
$
|
265
|
|
|
$
|
210
|
|
|
$
|
256
|
|
International Mill
average ferrous scrap purchase price
|
|
$
|
219
|
|
|
$
|
287
|
|
|
$
|
237
|
|
|
$
|
303
|
|
|
|
|
|
|
|
|
|
|
Americas Fabrication
rebar tons shipped
|
|
260
|
|
|
266
|
|
|
732
|
|
|
703
|
|
Americas Fabrication
structural and post tons shipped
|
|
34
|
|
|
44
|
|
|
103
|
|
|
114
|
|
Total Americas
Fabrication tons shipped
|
|
294
|
|
|
310
|
|
|
835
|
|
|
817
|
|
|
|
|
|
|
|
|
|
|
Americas Fabrication
average selling price (excluding stock and buyout sales)
|
|
$
|
953
|
|
|
$
|
921
|
|
|
$
|
951
|
|
|
$
|
924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
Three Months Ended
May 31,
|
|
Nine Months Ended
May 31,
|
Net
sales
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Americas
Recycling
|
|
$
|
225,096
|
|
|
$
|
335,104
|
|
|
$
|
800,234
|
|
|
$
|
1,015,574
|
|
Americas
Mills
|
|
446,821
|
|
|
527,574
|
|
|
1,400,517
|
|
|
1,465,574
|
|
Americas
Fabrication
|
|
417,895
|
|
|
409,425
|
|
|
1,174,793
|
|
|
1,093,533
|
|
International
Mill
|
|
156,318
|
|
|
207,558
|
|
|
472,396
|
|
|
618,070
|
|
International
Marketing and Distribution
|
|
518,244
|
|
|
549,745
|
|
|
1,521,288
|
|
|
1,533,551
|
|
Corporate
|
|
601
|
|
|
193
|
|
|
4,150
|
|
|
11,544
|
|
Eliminations
|
|
(258,973)
|
|
|
(291,006)
|
|
|
(796,269)
|
|
|
(784,717)
|
|
Total net
sales
|
|
$
|
1,506,002
|
|
|
$
|
1,738,593
|
|
|
$
|
4,577,109
|
|
|
$
|
4,953,129
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating
profit (loss)
|
|
|
|
|
|
|
|
|
Americas
Recycling
|
|
$
|
(1,970)
|
|
|
$
|
(1,085)
|
|
|
$
|
(3,285)
|
|
|
$
|
(1,109)
|
|
Americas
Mills
|
|
84,237
|
|
|
74,063
|
|
|
258,108
|
|
|
183,939
|
|
Americas
Fabrication
|
|
22,878
|
|
|
1,244
|
|
|
31,642
|
|
|
(1,869)
|
|
International
Mill
|
|
6,146
|
|
|
2,047
|
|
|
11,188
|
|
|
25,647
|
|
International
Marketing and Distribution
|
|
37,669
|
|
|
2,023
|
|
|
71,599
|
|
|
8,552
|
|
Corporate
|
|
(19,502)
|
|
|
(18,227)
|
|
|
(55,513)
|
|
|
(51,340)
|
|
Eliminations
|
|
(3,480)
|
|
|
(1,930)
|
|
|
(2,248)
|
|
|
88
|
|
Adjusted operating
profit from continuing operations
|
|
125,978
|
|
|
58,135
|
|
|
311,491
|
|
|
163,908
|
|
Adjusted operating
profit (loss) from discontinued operations
|
|
(10,604)
|
|
|
(892)
|
|
|
(19,180)
|
|
|
18,521
|
|
Adjusted operating
profit
|
|
$
|
115,374
|
|
|
$
|
57,243
|
|
|
$
|
292,311
|
|
|
$
|
182,429
|
|
COMMERCIAL METALS
COMPANY
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
|
|
|
Three Months Ended
May 31,
|
|
Nine Months Ended
May 31,
|
(in thousands,
except share data)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
1,506,002
|
|
|
$
|
1,738,593
|
|
|
$
|
4,577,109
|
|
|
$
|
4,953,129
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
1,270,044
|
|
|
1,560,174
|
|
|
3,933,516
|
|
|
4,455,481
|
|
Selling, general and
administrative expenses
|
|
110,347
|
|
|
121,402
|
|
|
333,332
|
|
|
336,334
|
|
Interest
expense
|
|
20,519
|
|
|
18,849
|
|
|
58,828
|
|
|
57,234
|
|
|
|
1,400,910
|
|
|
1,700,425
|
|
|
4,325,676
|
|
|
4,849,049
|
|
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations before income taxes
|
|
105,092
|
|
|
38,168
|
|
|
251,433
|
|
|
104,080
|
|
Income
taxes
|
|
37,964
|
|
|
13,700
|
|
|
84,252
|
|
|
32,657
|
|
Earnings from
continuing operations
|
|
67,128
|
|
|
24,468
|
|
|
167,181
|
|
|
71,423
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
discontinued operations before income taxes
|
|
(10,871)
|
|
|
(1,042)
|
|
|
(20,241)
|
|
|
17,969
|
|
Income taxes
(benefit)
|
|
(424)
|
|
|
(137)
|
|
|
(445)
|
|
|
8,766
|
|
Earnings (loss) from
discontinued operations
|
|
(10,447)
|
|
|
(905)
|
|
|
(19,796)
|
|
|
9,203
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
|
56,681
|
|
|
23,563
|
|
|
147,385
|
|
|
80,626
|
|
Less net earnings
attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Net
earnings attributable to CMC
|
|
$
|
56,681
|
|
|
$
|
23,563
|
|
|
$
|
147,385
|
|
|
$
|
80,625
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to CMC:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
$
|
0.58
|
|
|
$
|
0.21
|
|
|
$
|
1.43
|
|
|
$
|
0.61
|
|
Earnings (loss) from
discontinued operations
|
|
(0.09)
|
|
|
(0.01)
|
|
|
(0.17)
|
|
|
0.08
|
|
Net
earnings
|
|
$
|
0.49
|
|
|
$
|
0.20
|
|
|
$
|
1.26
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to CMC:
|
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
|
$
|
0.58
|
|
|
$
|
0.21
|
|
|
$
|
1.42
|
|
|
$
|
0.60
|
|
Earnings (loss) from
discontinued operations
|
|
(0.09)
|
|
|
(0.01)
|
|
|
(0.17)
|
|
|
0.08
|
|
Net
earnings
|
|
$
|
0.49
|
|
|
$
|
0.20
|
|
|
$
|
1.25
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.36
|
|
|
$
|
0.36
|
|
Average basic shares
outstanding
|
|
115,742,534
|
|
|
117,705,133
|
|
|
116,807,469
|
|
|
117,400,198
|
|
Average diluted
shares outstanding
|
|
116,759,215
|
|
|
118,769,675
|
|
|
117,871,228
|
|
|
118,521,816
|
|
COMMERCIAL METALS
COMPANY
CONDENSED
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
(in
thousands)
|
|
May 31,
2015
|
|
August 31,
2014
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
381,006
|
|
|
$
|
434,925
|
|
Accounts receivable,
net
|
|
987,146
|
|
|
1,028,425
|
|
Inventories,
net
|
|
944,611
|
|
|
935,411
|
|
Current deferred tax
assets
|
|
32,656
|
|
|
49,455
|
|
Other current
assets
|
|
98,525
|
|
|
105,575
|
|
Assets of businesses
held for sale
|
|
69,682
|
|
|
—
|
|
Total current
assets
|
|
2,513,626
|
|
|
2,553,791
|
|
Net property, plant
and equipment
|
|
872,027
|
|
|
925,098
|
|
Goodwill
|
|
73,762
|
|
|
74,319
|
|
Other noncurrent
assets
|
|
120,311
|
|
|
135,312
|
|
Total
assets
|
|
$
|
3,579,726
|
|
|
$
|
3,688,520
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable-trade
|
|
$
|
294,226
|
|
|
$
|
423,807
|
|
Accounts
payable-documentary letters of credit
|
|
166,717
|
|
|
125,053
|
|
Accrued expenses and
other payables
|
|
277,071
|
|
|
322,000
|
|
Notes
payable
|
|
4,796
|
|
|
12,288
|
|
Current maturities of
long-term debt
|
|
9,753
|
|
|
8,005
|
|
Liabilities of
businesses held for sale
|
|
28,863
|
|
|
—
|
|
Total current
liabilities
|
|
781,426
|
|
|
891,153
|
|
Deferred income
taxes
|
|
60,338
|
|
|
55,600
|
|
Other long-term
liabilities
|
|
105,303
|
|
|
112,134
|
|
Long-term
debt
|
|
1,279,369
|
|
|
1,281,042
|
|
Total
liabilities
|
|
2,226,436
|
|
|
2,339,929
|
|
Stockholders' equity
attributable to CMC
|
|
1,353,141
|
|
|
1,348,480
|
|
Stockholders' equity
attributable to noncontrolling interests
|
|
149
|
|
|
111
|
|
Total stockholders'
equity
|
|
1,353,290
|
|
|
1,348,591
|
|
Total liabilities and
stockholders' equity
|
|
$
|
3,579,726
|
|
|
$
|
3,688,520
|
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
Nine Months Ended
May 31,
|
(in
thousands)
|
|
2015
|
|
2014
|
Cash flows from (used
by) operating activities:
|
|
|
|
|
Net
earnings
|
|
$
|
147,385
|
|
|
$
|
80,626
|
|
Adjustments to
reconcile net earnings to cash flows from (used by) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
99,829
|
|
|
101,130
|
|
Provision for losses
on receivables, net
|
|
2,525
|
|
|
(1,705)
|
|
Stock-based
compensation
|
|
18,288
|
|
|
16,054
|
|
Amortization of
interest rate swaps termination gain
|
|
(5,698)
|
|
|
(5,698)
|
|
Deferred income
taxes
|
|
26,396
|
|
|
28,560
|
|
Tax benefits from
stock plans
|
|
(122)
|
|
|
(625)
|
|
Net gain on sale
of a subsidiary and other
|
|
(1,737)
|
|
|
(28,032)
|
|
Write-down of
inventory
|
|
11,697
|
|
|
—
|
|
Asset
impairment
|
|
3,390
|
|
|
1,227
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
|
90,412
|
|
|
(59,479)
|
|
Accounts receivable
sold, net
|
|
(98,033)
|
|
|
124,415
|
|
Inventories
|
|
(111,675)
|
|
|
(176,766)
|
|
Other
assets
|
|
11,055
|
|
|
(18,486)
|
|
Accounts payable,
accrued expenses and other payables
|
|
(129,322)
|
|
|
38,328
|
|
Other long-term
liabilities
|
|
(5,601)
|
|
|
(5,244)
|
|
Net cash flows from
(used by) operating activities
|
|
58,789
|
|
|
94,305
|
|
|
|
|
|
|
Cash flows from (used
by) investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(75,976)
|
|
|
(67,718)
|
|
Proceeds from the
sale of property, plant and equipment and other
|
|
10,143
|
|
|
6,773
|
|
Proceeds from the
sale of a subsidiary
|
|
2,354
|
|
|
52,276
|
|
Net cash flows from
(used by) investing activities
|
|
(63,479)
|
|
|
(8,669)
|
|
|
|
|
|
|
Cash flows from (used
by) financing activities:
|
|
|
|
|
Documentary letters
of credit, net change
|
|
51,722
|
|
|
2,985
|
|
Short-term
borrowings, net change
|
|
(7,492)
|
|
|
(1,333)
|
|
Repayments on
long-term debt
|
|
(8,038)
|
|
|
(4,826)
|
|
Stock issued under
incentive and purchase plans, net of forfeitures
|
|
(1,389)
|
|
|
(860)
|
|
Treasury stock
acquired
|
|
(41,806)
|
|
|
—
|
|
Cash
dividends
|
|
(42,073)
|
|
|
(42,290)
|
|
Tax benefits from
stock plans
|
|
122
|
|
|
625
|
|
Decrease in
restricted cash
|
|
3,630
|
|
|
18,037
|
|
Contribution from
(purchase of) noncontrolling interests
|
|
38
|
|
|
(37)
|
|
Payments for debt
issuance costs
|
|
—
|
|
|
(430)
|
|
Net cash flows from
(used by) financing activities
|
|
(45,286)
|
|
|
(28,129)
|
|
Effect of exchange
rate changes on cash
|
|
(3,943)
|
|
|
933
|
|
Increase (decrease)
in cash and cash equivalents
|
|
(53,919)
|
|
|
58,440
|
|
Cash and cash
equivalents at beginning of year
|
|
434,925
|
|
|
378,770
|
|
Cash and cash
equivalents at end of period
|
|
$
|
381,006
|
|
|
$
|
437,210
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
Noncash
activities:
|
|
|
|
|
Capital lease
additions and changes in accounts payable related to purchases of
property, plant and equipment
|
|
$
|
11,882
|
|
|
$
|
9,143
|
|
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 is the sum
of adjusted operating profit from continuing operations and
adjusted operating profit (loss) from discontinued operations.
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 (loss) from discontinued operations is
the sum of our earnings (loss) from discontinued operations before
income taxes (benefit), interest expense and discounts on sales of
accounts receivable. 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
May 31,
|
|
Nine Months Ended
May 31,
|
(in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings from
continuing operations
|
|
$
|
67,128
|
|
|
$
|
24,468
|
|
|
$
|
167,181
|
|
|
$
|
71,423
|
|
Income
taxes
|
|
37,964
|
|
|
13,700
|
|
|
84,252
|
|
|
32,657
|
|
Interest
expense
|
|
20,519
|
|
|
18,849
|
|
|
58,828
|
|
|
57,234
|
|
Discounts on sales of
accounts receivable
|
|
367
|
|
|
1,118
|
|
|
1,230
|
|
|
2,594
|
|
Adjusted operating
profit from continuing operations
|
|
125,978
|
|
|
58,135
|
|
|
311,491
|
|
|
163,908
|
|
Adjusted operating
profit (loss) from discontinued operations
|
|
(10,604)
|
|
|
(892)
|
|
|
(19,180)
|
|
|
18,521
|
|
Adjusted operating
profit
|
|
$
|
115,374
|
|
|
$
|
57,243
|
|
|
$
|
292,311
|
|
|
$
|
182,429
|
|
Adjusted EBITDA is a non-GAAP financial measure. Adjusted
EBITDA is the sum of adjusted EBITDA from continuing operations and
adjusted EBITDA from discontinued operations. Adjusted EBITDA from
continuing operations is the sum of our earnings from continuing
operations before net earnings 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 from discontinued operations is the sum
of our earnings (loss) from discontinued operations before net
earnings attributable to noncontrolling interests, interest expense
and income taxes (benefit). It also excludes the largest recurring
non-cash charge from discontinued operations, depreciation and
amortization, as well as impairment charges from discontinued
operations, which are also non-cash. 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
May 31,
|
|
Nine Months Ended
May 31,
|
(in
thousands)
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Earnings from
continuing operations
|
|
$
|
67,128
|
|
|
$
|
24,468
|
|
|
$
|
167,181
|
|
|
$
|
71,423
|
|
Net earnings
attributable to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
Interest
expense
|
|
20,519
|
|
|
18,849
|
|
|
58,828
|
|
|
57,234
|
|
Income
taxes
|
|
37,964
|
|
|
13,700
|
|
|
84,252
|
|
|
32,657
|
|
Depreciation and
amortization
|
|
32,840
|
|
|
33,393
|
|
|
99,553
|
|
|
99,784
|
|
Impairment
charges
|
|
39
|
|
|
—
|
|
|
188
|
|
|
905
|
|
Adjusted EBITDA from
continuing operations
|
|
158,490
|
|
|
90,410
|
|
|
410,002
|
|
|
262,002
|
|
Adjusted EBITDA from
discontinued operations
|
|
(7,582)
|
|
|
(439)
|
|
|
(16,460)
|
|
|
20,159
|
|
Adjusted
EBITDA
|
|
$
|
150,908
|
|
|
$
|
89,971
|
|
|
$
|
393,542
|
|
|
$
|
282,161
|
|
Adjusted EBITDA to interest coverage ratio for the quarter
ended May 31, 2015:
Total Liquidity is a non-GAAP financial measure and is
the sum of the Company's cash and cash equivalents and availability
under its revolving credit facility, U.S. and international
accounts receivables sales facilities and its uncommitted bank
lines of credit. The table below reflects the Company's cash and
cash equivalents, credit facilities and availability to
liquidity.
|
|
May 31,
2015
|
(in
thousands)
|
|
Total
Facility
|
|
Availability
|
Cash and cash
equivalents
|
|
$
|
381,006
|
|
|
$
|
381,006
|
|
Revolving credit
facility
|
|
350,000
|
|
|
326,555
|
|
U.S. receivables sale
facility
|
|
200,000
|
|
|
185,000
|
|
International
accounts receivable sales facilities
|
|
99,267
|
|
|
64,100
|
|
Bank credit
facilities — uncommitted
|
|
92,462
|
|
|
91,660
|
|
Total
Liquidity
|
|
$
|
1,122,735
|
|
|
$
|
1,048,321
|
|
Total Capitalization:
Total capitalization is a non-GAAP financial measure and
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)
|
|
May 31,
2015
|
Stockholders' equity
attributable to CMC
|
|
$
|
1,353,141
|
|
Long-term
debt
|
|
1,279,369
|
|
Deferred income
taxes
|
|
60,338
|
|
Total
capitalization
|
|
$
|
2,692,848
|
|
OTHER FINANCIAL INFORMATION
Long-term debt to
capitalization ratio as of May 31, 2015:
$1,279,369
|
/
|
$2,692,848
|
=
|
47.5%
|
Total debt to capitalization plus short-term debt plus notes
payable ratio as of May 31, 2015:
(
|
$1,279,369
|
+
|
$9,753
|
+
|
$4,796
|
)
|
/
|
(
|
$2,692,848
|
+
|
$9,753
|
+
|
$4,796
|
)
|
=
|
47.8%
|
Current ratio as of May 31, 2015:
Current assets
divided by current liabilities
$2,513,626
|
/
|
$781,426
|
=
|
3.2
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/commercial-metals-company-reports-third-quarter-earnings-per-share-of-049-earnings-per-share-from-continuing-operations-of-058-and-announces-quarterly-dividend-of-012-per-share-300104603.html
SOURCE Commercial Metals Company