FORT WAYNE, Ind., July 20, 2015 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today announced second quarter
2015 adjusted net income of $53
million, or $0.22 per diluted
share, and adjusted operating income of $120
million, which excludes the following items:
- Excluding non-controlling interests, approximately $29 million, or $0.07 per diluted share, of expenses associated
with the second quarter 2015 long-term idle of company's Minnesota
Operations. These costs include non-cash inventory valuation
adjustments of approximately $21
million.
- Approximately $9 million, or
$0.02 per diluted share, of reduced
earnings related to a planned furnace maintenance outage at Iron
Dynamics that generally is required once every five years.
Including these items, the company reported second quarter 2015
net income of $32 million, or
$0.13 per diluted share, on net sales
of $2.0 billion.
Comparatively, prior year second quarter net income was
$72 million, or $0.31 per diluted share, on net sales of
$2.1 billion, and sequential first
quarter 2015 net sales were $2.0
billion, with adjusted net income of $40 million, or $0.17 per diluted share, which excluded the
impact of refinancing charges of $0.04 per diluted share.
"The second quarter 2015 market environment remained extremely
challenging for our steel and metals recycling operations," said
Mark D. Millett, Chief Executive
Officer. "The ongoing flood of steel imports continued to pressure
steel product pricing to a greater degree than the benefit realized
from lower scrap costs, compressing second quarter steel
margins. However, due to continued solid U.S. steel demand,
our second quarter steel shipments improved, which offset most of
the margin compression. Steel pricing has recently stabilized
and domestic steel consumption from the automotive, manufacturing
and construction sectors should support a stronger domestic steel
industry in the second half of the year, predicated upon the
expectation of reduced levels of imported steel and sustainable
lower raw material costs.
"An important barometer for domestic steel consumption is the
strength of the construction industry. Historically, the
construction industry has been the largest single domestic steel
consuming sector, and it is continuing to strengthen this year,"
continued Millett. "For the second quarter 2015, our
fabrication operations achieved record profitability. Strong
demand has allowed for stable product pricing, while order
inquiries and bookings remain robust, confirming the positive trend
in the non-residential construction market.
"Despite the import headwinds, we achieved over a 20 percent
improvement in sequential second quarter 2015 adjusted operating
income (excluding the idled Minnesota Operations and the Iron
Dynamics outage impact), based on record fabrication performance
and significantly improved metals recycling results, as scrap
pricing volatility subsided in the quarter. We believe the
key scrap supply factors of export activity and the strength of the
U.S. dollar will continue to mute extreme scrap pricing
volatility," concluded Millett.
The company generated strong cash flow from operations of
$309 million during the second
quarter 2015, representing a 32 percent increase from the
sequential quarter. For the first six months of 2015, the
company generated $544 million of
cash flow from operations, and after considering the impact of
capital expenditures, generated $488
million of free cash flow, or $2.02 per common share
outstanding.
Additional Second Quarter 2015 Comments
While steel import levels remained high, continued strength in
U.S. steel consumption resulted in increased steel and metals
recycling shipments. Second quarter 2015 operating income for
the company's steel operations decreased 3 percent to $110 million, due to metal spread compression,
which was largely offset by a 15 percent increase in steel
shipments. Steel metal spread contracted in the second
quarter 2015 as a function of the excessive import levels, which
caused steel product pricing to decline more rapidly than scrap raw
material costs. The average product selling price for the
company's steel operations decreased $101 to $662 per
ton. The average ferrous scrap cost per ton melted decreased
$57 to $255 per ton.
Second quarter 2015 operating income attributable to the
company's sheet products decreased 15 percent when compared to the
sequential quarter. Although the company's flat roll
shipments increased 24 percent, metal spread contracted
meaningfully, as flat roll products were the most negatively
impacted by high import volumes and existing customer inventory
levels. Operating income from long products increased ten
percent, as construction-related and rail volumes improved.
Driven by stronger flat roll volume, the company's steel
production utilization rate significantly recovered to 87 percent
for the second quarter 2015, which is higher than both the average
U.S. domestic steel mill utilization rate and the company's first
quarter 2015 utilization rate of 73 percent.
The company's metals recycling operations recorded second
quarter 2015 operating income of $12.3
million compared to a slight operating loss in the first
quarter 2015, based on both increased ferrous shipments and margins
as steel mill utilization improved and scrap price volatility
subsided.
The company's fabrication operations continued to achieve record
financial performance. Second quarter 2015 operating income
of $27.7 million surpassed the fourth
quarter 2014 previous record by 27 percent. Sustained
strong demand combined with lower raw material steel costs,
supported metal spread expansion.
As discussed in the company's May 26,
2015, press release, management and the board of directors
elected to idle the Minnesota Operations for an initial twenty-four
month period given the significant and sustained decline in pig
iron pricing, which resulted in the cost of iron nugget production
being meaningfully higher than product selling values. The
strength of the U.S. dollar and world iron ore supply support lower
pig iron prices for the foreseeable future. Given the
company's Minnesota Operations were intended to serve as a hedge
against high priced pig iron and scrap, the indefinite idle was a
prudent and necessary response to the prevailing market
environment. While the lower raw material cost environment
advantages the company's steel operations, it has resulted in an
uneconomic situation for its Minnesota iron production operations.
Year-to-Date Comparison
For the first six months ended June 30,
2015, net income was $62
million, or $0.26 per diluted
share, on net sales of $4.1 billion,
as compared to net income of $111
million, or $0.48 per diluted
share, on net sales of $3.9 billion
for the six months ended June 30,
2014. Year-to-date consolidated net sales increased four
percent, primarily as a result of the acquisition of the Columbus
flat roll steel mill in September
2014, resulting in higher first half 2015 steel shipments
that more than offset the 26 percent decline in metals recycling
revenue. Year-to-date consolidated operating income
decreased $36 million, or 17 percent,
as the result of both decreased steel prices and the additional
costs incurred in the second quarter 2015 from the company's iron
production facilities. Excluding the impact from idling the
Minnesota iron production
facilities and the Iron Dynamics maintenance outage, year-to-date
adjusted consolidated operating income improved three percent, to
$220 million, based on improved
fabrication results. The average selling price for the
company's steel operations decreased $125 per ton. The average ferrous scrap
cost per ton melted decreased $91 per
ton.
Outlook
"Based on an expected reduction in steel import volume and
sustained lower scrap costs, we anticipate improved financial
results in the second half of 2015," said Millett. "We
continue to strengthen our financial position through strong cash
flow generation, and the execution of our long-term strategy.
We are well-positioned for additional growth. The recently
announced paint line addition at our Columbus Flat Roll Division is
an example of an investment that provides an excellent financial
return, further diversifying our product capabilities into higher
margin market segments at this facility. Customer focus,
coupled with our market diversification and low-cost operating
platforms, support our ability to maintain our best-in-class
performance. We believe we are poised to capitalize on meaningful
growth opportunities, both near-term and in the future, that will
benefit our customers, shareholders, employees and communities,"
concluded Millett.
Supplemental Quarterly Information
|
|
|
|
|
Second
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
1Q 2015
|
External Net
Sales
|
|
|
|
(Dollars in
thousands)
|
|
Steel
|
|
|
|
$ 1,375,677
|
|
$ 1,265,104
|
|
$ 2,761,096
|
|
$ 2,382,702
|
|
$ 1,385,419
|
|
Fabrication
|
|
|
|
154,513
|
|
134,852
|
|
315,536
|
|
250,713
|
|
161,023
|
|
Metals
Recycling
|
|
|
391,210
|
|
580,509
|
|
816,806
|
|
1,103,633
|
|
425,596
|
|
Ferrous
Resources
|
|
|
70,423
|
|
64,707
|
|
123,541
|
|
117,357
|
|
53,118
|
|
Other
|
|
|
|
13,184
|
|
24,589
|
|
35,463
|
|
45,438
|
|
22,279
|
|
|
|
Consolidated
|
|
$ 2,005,007
|
|
$ 2,069,761
|
|
$ 4,052,442
|
|
$ 3,899,843
|
|
$ 2,047,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
$ 109,961
|
|
$ 158,083
|
|
$ 223,532
|
|
$ 265,859
|
|
$ 113,571
|
|
Fabrication
|
|
|
|
27,660
|
|
7,590
|
|
49,021
|
|
10,716
|
|
21,361
|
|
Metals
Recycling
|
|
|
12,300
|
|
18,398
|
|
11,820
|
|
27,947
|
|
(480)
|
|
Ferrous
Resources
|
|
|
(43,465)
|
|
(19,915)
|
|
(56,032)
|
|
(40,445)
|
|
(12,567)
|
|
|
|
Operations
|
|
106,456
|
|
164,156
|
|
228,341
|
|
264,077
|
|
121,885
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash Amortization
of Intangible Assets
|
(6,493)
|
|
(6,934)
|
|
(12,816)
|
|
(13,869)
|
|
(6,323)
|
|
Profit Sharing
Expense
|
|
|
(5,031)
|
|
(10,469)
|
|
(9,629)
|
|
(15,864)
|
|
(4,598)
|
|
Non-segment
Operations
|
|
|
(17,373)
|
|
(14,848)
|
|
(28,566)
|
|
(21,507)
|
|
(11,193)
|
|
|
|
Consolidated
Operating Income
|
|
77,559
|
|
131,905
|
|
177,330
|
|
212,837
|
|
99,771
|
|
Minnesota Idle
Charges (Including Minority Interests)
|
33,167
|
|
-
|
|
33,167
|
|
-
|
|
-
|
|
Iron Dynamics Outage
Impact
|
|
9,403
|
|
-
|
|
9,403
|
|
-
|
|
-
|
|
|
|
Adjusted Operating
Income (1)
|
|
$ 120,129
|
|
$ 131,905
|
|
$ 219,900
|
|
$ 212,837
|
|
$ 99,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel (In
tons)
|
|
|
2,078,685
|
|
1,518,882
|
|
3,895,056
|
|
2,857,455
|
|
1,816,371
|
|
|
|
Steel Shipped to
Internal Locations
|
|
163,723
|
|
158,884
|
|
296,372
|
|
271,043
|
|
132,649
|
|
Fabrication (In
tons)
|
|
|
109,662
|
|
105,188
|
|
222,391
|
|
199,855
|
|
112,729
|
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous (In
000's of pounds)
|
253,273
|
|
270,271
|
|
494,853
|
|
521,859
|
|
241,580
|
|
|
Ferrous (In gross
tons)
|
|
626,264
|
|
769,046
|
|
1,268,344
|
|
1,418,598
|
|
642,080
|
|
|
|
Ferrous Scrap
Shipped to Internal Steel Mills
|
|
731,491
|
|
653,651
|
|
1,322,412
|
|
1,368,632
|
|
590,921
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External
Sales Price (Per ton shipped)
|
$
662
|
|
$
833
|
|
$
709
|
|
$
834
|
|
$
763
|
|
|
Average Ferrous Cost
(Per ton melted)
|
$
255
|
|
$
364
|
|
$
280
|
|
$
371
|
|
$
312
|
|
|
Flat Roll
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler
Division
|
721,115
|
|
778,220
|
|
1,300,608
|
|
1,419,740
|
|
579,493
|
|
|
|
Columbus Division
(Acquired Sept 2014)
|
693,772
|
|
-
|
|
1,258,013
|
|
-
|
|
564,241
|
|
|
|
The Techs
|
|
182,239
|
|
191,934
|
|
328,173
|
|
345,171
|
|
145,934
|
|
|
Long Product
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail
Division-Structural
|
227,338
|
|
282,681
|
|
464,982
|
|
531,061
|
|
237,644
|
|
|
|
Structural and Rail
Division-Rail
|
74,912
|
|
53,699
|
|
141,620
|
|
97,635
|
|
66,708
|
|
|
|
Engineered Bar
Products Division
|
120,559
|
|
152,768
|
|
276,925
|
|
297,071
|
|
156,366
|
|
|
|
Roanoke Bar
Division
|
140,795
|
|
143,583
|
|
265,918
|
|
287,365
|
|
125,123
|
|
|
|
Steel of West
Virginia-Specialty Shapes
|
81,678
|
|
74,881
|
|
155,189
|
|
150,455
|
|
73,511
|
|
|
|
Total Steel Shipments
(In tons)
|
|
2,242,408
|
|
1,677,766
|
|
4,191,428
|
|
3,128,498
|
|
1,949,020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Production
(In tons)
|
2,344,895
|
|
1,708,252
|
|
4,294,158
|
|
3,227,818
|
|
1,949,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External
Sales Price (Per ton shipped)
|
$ 1,409
|
|
$ 1,282
|
|
$ 1,419
|
|
$ 1,254
|
|
$ 1,428
|
|
Consolidated
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before
Taxes
|
$ 41,608
|
|
$ 103,610
|
|
$ 82,100
|
|
$ 154,604
|
|
$ 40,492
|
|
|
|
Net Interest
Expense
|
36,890
|
|
29,860
|
|
79,764
|
|
60,207
|
|
42,874
|
|
|
|
Depreciation
|
66,281
|
|
49,970
|
|
131,141
|
|
98,916
|
|
64,860
|
|
|
|
Amortization
|
6,493
|
|
6,934
|
|
12,816
|
|
13,869
|
|
6,323
|
|
|
|
Non-controlling
Interest
|
6,225
|
|
5,962
|
|
10,032
|
|
10,843
|
|
3,807
|
|
|
|
EBITDA
|
|
157,497
|
|
196,336
|
|
315,853
|
|
338,439
|
|
158,356
|
|
|
|
Unrealized Hedging
(Gain) Loss
|
(1,808)
|
|
2,500
|
|
1,407
|
|
(1,567)
|
|
3,215
|
|
|
|
Inventory
Valuation
|
18,075
|
|
1,596
|
|
23,065
|
|
2,234
|
|
4,990
|
|
|
|
Equity Based
Compensation
|
6,356
|
|
4,700
|
|
13,555
|
|
9,389
|
|
7,199
|
|
|
|
Non-Cash Financing
Expenses
|
-
|
|
-
|
|
3,326
|
|
-
|
|
3,326
|
|
|
|
Adjusted
EBITDA
|
|
$ 180,120
|
|
$ 205,132
|
|
$ 357,206
|
|
$ 348,495
|
|
$ 177,086
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Amount excludes 2Q
2015 expenses associated with the idled Minnesota Operations
(amount includes non-controlling interests of approximately $4
million) and the impact from the Q2 2015 Iron Dynamics planned
furnace maintenance outage that generally is required once every 5
years.
|
Conference Call and Webcast
Steel Dynamics, Inc.
will hold a conference call to discuss second quarter 2015
operating and financial results on Tuesday,
July 21, 2015, at 10:00 a.m. Eastern
Time. You may access the call and find dial-in
information on the Investor Relations section of the company's
website at www.steeldynamics.com. A replay of the call will
be available on our website until 11:59 p.m.
Eastern Time on July 28,
2015.
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 $8.8 billion in 2014,
approximately 7,600 employees, and manufacturing facilities
primarily located throughout the United
States (including six steel mills, eight steel coating
facilities, an iron production facility, approximately 90 metals
recycling locations and six steel fabrication plants).
Note Regarding Non-GAAP Financial Measures
The
company reports its financial results in accordance with U.S.
generally accepted accounting principles (GAAP). Management
believes that EBITDA and Adjusted EBITDA, non-GAAP financial
measures, provide additional meaningful information regarding the
company's performance and financial strength. Non-GAAP financial
measures should be viewed in addition to, and not as an alternative
for, the company's reported results prepared in accordance with
GAAP. In addition, because not all companies use identical
calculations, EBITDA included in this release may not be comparable
to similarly titled measures of other companies.
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 uncertain economic
conditions; (2) cyclical and changing industrial demand; (3)
changes in conditions in any of the steel or scrap-consuming
sectors of the economy which affect demand for our products,
including the strength of the non-residential and residential
construction, automotive, appliance, pipe and tube, and other
steel-consuming industries; (4) 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; (5) the impact of
domestic and foreign import price competition; (6) unanticipated
difficulties in integrating or starting up new or acquired
businesses; (7) risks and uncertainties involving product and/or
technology development; and (8) occurrences of unexpected plant
outages or equipment failures.
More specifically, we refer you to 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.
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
(Dollars in
thousands, except per share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
March
31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,005,007
|
$
|
2,069,761
|
$
|
4,052,442
|
$
|
3,899,843
|
$
|
2,047,435
|
Costs of goods
sold
|
|
1,833,264
|
|
1,846,990
|
|
3,693,657
|
|
3,513,768
|
|
1,860,393
|
Gross
profit
|
|
171,743
|
|
222,771
|
|
358,785
|
|
386,075
|
|
187,042
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
82,660
|
|
73,463
|
|
159,010
|
|
143,505
|
|
76,350
|
Profit
sharing
|
|
5,031
|
|
10,469
|
|
9,629
|
|
15,864
|
|
4,598
|
Amortization of
intangible assets
|
|
6,493
|
|
6,934
|
|
12,816
|
|
13,869
|
|
6,323
|
Operating
income
|
|
77,559
|
|
131,905
|
|
177,330
|
|
212,837
|
|
99,771
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
37,163
|
|
30,050
|
|
80,250
|
|
60,619
|
|
43,087
|
Other expense
(income), net
|
|
(1,212)
|
|
(1,754)
|
|
14,980
|
|
(2,385)
|
|
16,192
|
Income
before income taxes
|
|
41,608
|
|
103,609
|
|
82,100
|
|
154,603
|
|
40,492
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
16,283
|
|
37,268
|
|
29,821
|
|
54,564
|
|
13,538
|
Net
income
|
|
25,325
|
|
66,341
|
|
52,279
|
|
100,039
|
|
26,954
|
Net loss attributable
to noncontrolling interests
|
|
6,225
|
|
5,962
|
|
10,032
|
|
10,843
|
|
3,807
|
Net income attributable to Steel Dynamics,
Inc.
|
$
|
31,550
|
$
|
72,303
|
$
|
62,311
|
$
|
110,882
|
$
|
30,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
Steel Dynamics,
Inc. stockholders
|
$
|
0.13
|
$
|
0.32
|
$
|
0.26
|
$
|
0.49
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
241,900
|
|
226,220
|
|
241,718
|
|
224,615
|
|
241,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
Steel Dynamics, Inc. stockholders, including the
effect of assumed conversions when
dilutive
|
$
|
0.13
|
$
|
0.31
|
$
|
0.26
|
$
|
0.48
|
$
|
0.13
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and equivalents
|
|
243,491
|
|
242,048
|
|
243,179
|
|
241,721
|
|
242,867
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.1375
|
$
|
0.115
|
$
|
0.2750
|
$
|
0.230
|
$
|
0.1375
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
BALANCE SHEETS
|
(Dollars in
thousands)
|
|
|
|
|
June
30,
2015
|
|
|
December
31,
2014
|
|
|
(unaudited)
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
419,401
|
|
$
|
361,363
|
Accounts
receivable, net
|
|
|
816,522
|
|
|
902,825
|
Inventories
|
|
|
1,292,069
|
|
|
1,618,419
|
Deferred
income taxes
|
|
|
31,396
|
|
|
35,503
|
Other
current
assets
|
|
|
32,004
|
|
|
55,655
|
Total current
assets
|
|
|
2,591,392
|
|
|
2,973,765
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
|
3,047,401
|
|
|
3,123,906
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
19,571
|
|
|
19,312
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
358,402
|
|
|
370,669
|
|
|
|
|
|
|
|
Goodwill
|
|
|
741,898
|
|
|
745,158
|
|
|
|
|
|
|
|
Other
assets
|
|
|
68,099
|
|
|
78,217
|
Total
assets
|
|
$
|
6,826,763
|
|
$
|
7,311,027
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
446,698
|
|
$
|
511,056
|
Income
taxes payable
|
|
|
2,411
|
|
|
6,086
|
Accrued
expenses
|
|
|
214,404
|
|
|
286,980
|
Current maturities of long-term debt
|
|
|
35,075
|
|
|
46,460
|
Total current liabilities
|
|
|
698,588
|
|
|
850,582
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
Senior
term loan
|
|
|
231,250
|
|
|
237,500
|
Senior
notes
|
|
|
2,350,000
|
|
|
2,700,000
|
Other
long-term debt
|
|
|
38,324
|
|
|
40,206
|
Total long-term debt
|
|
|
2,619,574
|
|
|
2,977,706
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
567,754
|
|
|
542,033
|
Other
liabilities
|
|
|
16,147
|
|
|
18,839
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
125,972
|
|
|
126,340
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
|
636
|
|
|
635
|
Treasury
stock, at cost
|
|
|
(396,491)
|
|
|
(398,898)
|
Additional
paid-in capital
|
|
|
1,099,669
|
|
|
1,083,435
|
Retained
earnings
|
|
|
2,223,599
|
|
|
2,227,843
|
Total Steel Dynamics, Inc. equity
|
|
|
2,927,413
|
|
|
2,913,015
|
Non-controlling interests
|
|
|
(128,685)
|
|
|
(117,488)
|
Total equity
|
|
|
2,798,728
|
|
|
2,795,527
|
Total liabilities and
equity
|
|
$
|
6,826,763
|
|
$
|
7,311,027
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
(Dollars in
thousands)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
25,325
|
$
|
66,341
|
$
|
52,279
|
$
|
100,039
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
74,273
|
|
58,441
|
|
147,095
|
|
116,009
|
Equity-based compensation
|
|
6,357
|
|
4,700
|
|
14,900
|
|
10,468
|
Deferred income
taxes
|
|
16,367
|
|
(280)
|
|
33,084
|
|
(4,371)
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(47,149)
|
|
(99,696)
|
|
85,935
|
|
(188,646)
|
Inventories
|
|
161,174
|
|
11,230
|
|
326,173
|
|
(6,124)
|
Accounts
payable
|
|
62,735
|
|
13,385
|
|
(64,318)
|
|
18,426
|
Income taxes receivable / payable
|
|
(6,844)
|
|
(4,964)
|
|
9,421
|
|
14,429
|
Other assets and
liabilities
|
|
16,974
|
|
26,857
|
|
(60,650)
|
|
(11,463)
|
Net cash provided by operating
activities
|
|
309,212
|
|
76,014
|
|
543,919
|
|
48,767
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
(22,821)
|
|
(33,534)
|
|
(56,172)
|
|
(58,375)
|
Other
investing activities
|
|
806
|
|
2,314
|
|
2,469
|
|
31,198
|
Net cash used in investing activities
|
|
(22,015)
|
|
(31,220)
|
|
(53,703)
|
|
(27,177)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term
debt
|
|
60,941
|
|
63,945
|
|
111,034
|
|
107,398
|
Repayment
of current and long-term
debt
|
|
(60,557)
|
|
(76,412)
|
|
(488,008)
|
|
(132,658)
|
Exercise
of stock option proceeds, including related tax effect
|
|
5,206
|
|
8,516
|
|
6,959
|
|
11,421
|
Contributions from noncontrolling investors, net
|
|
(1,135)
|
|
(606)
|
|
(1,164)
|
|
4,764
|
Dividends
paid
|
|
(33,233)
|
|
(25,666)
|
|
(60,999)
|
|
(50,181)
|
Net cash used in financing
activities
|
|
(28,778)
|
|
(30,223)
|
|
(432,178)
|
|
(59,256)
|
|
|
|
|
|
|
|
|
|
Increase
(decrease) in cash and equivalents
|
|
258,419
|
|
14,571
|
|
58,038
|
|
(37,666)
|
Cash and
equivalents at beginning of period
|
|
160,982
|
|
342,919
|
|
361,363
|
|
395,156
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents at end of period
|
$
|
419,401
|
$
|
357,490
|
$
|
419,401
|
$
|
357,490
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Cash paid
for interest
|
$
|
48,550
|
$
|
20,838
|
$
|
88,644
|
$
|
60,501
|
Cash paid
(received) for federal and state income taxes, net
|
$
|
7,046
|
$
|
43,008
|
$
|
(11,493)
|
$
|
45,151
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-second-quarter-2015-results-300115835.html
SOURCE Steel Dynamics, Inc.