FORT WAYNE, Ind., Oct. 19, 2016 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced third quarter 2016 financial
results. Excluding a litigation settlement charge of
approximately $5 million (pretax),
third quarter 2016 adjusted net income was $160 million, or $0.65 per diluted share, on net sales of
$2.1 billion. Including this
charge, the company reported GAAP net income of $157 million, or $0.64 per diluted share.
The third quarter 2016 also included non-cash purchase
accounting charges associated with the company's recent Vulcan
acquisition of approximately $2
million (pretax). Comparatively, prior year third
quarter net income was $61 million,
or $0.25 per diluted share, on net
sales of $2.0 billion, and sequential
second quarter 2016 net income was $142
million, or $0.58 per diluted
share, on net sales of $2.0
billion.
"During the third quarter 2016, positive momentum in flat roll
metal spread expansion resulted in improved sequential consolidated
operating earnings, which increased 11 percent to $284 million," said Mark
D. Millett, President and Chief Executive Officer.
"Year-over-year flat roll steel import levels declined
approximately 20 percent, while customer inventory levels remained
low compared to historical averages. The domestic steel
demand outlook is relatively unchanged, with the heavy equipment,
agricultural and energy markets remaining weak, while automotive
continues to be strong and construction continues to improve.
However, late in the third quarter, customers were hesitant to make
purchases ahead of an anticipated scrap price decrease and as a
result September steel shipments were lower than
anticipated.
"Our metals recycling platform earnings decreased in third
quarter 2016, as scrap prices declined in both August and
September," continued Millett. "Ferrous scrap demand declined based
on lower domestic steel mill utilization, resulting in lower
ferrous shipments, while ferrous metal margin remained
steady. Earnings from our fabrication operations also
declined in the quarter, due to increased steel input costs more
than offsetting higher selling values. However, our
fabrication platform continues to experience steady demand from the
non-residential construction sector. Based on continued
strong generation of cash flow from operations of $196 million in the third quarter 2016, we
maintained record liquidity of over $2.2
billion at the end of September
2016, providing a firm foundation for growth."
Additional Third Quarter 2016 Comments
Third quarter 2016 operating income for the company's steel
operations increased 13 percent to $311
million sequentially, based on meaningful metal spread
improvement which more than offset a nine percent reduction in
shipments across the platform. The company's average steel
product price increased more than consumed raw material scrap
costs, resulting in steel metal spread expansion. The third
quarter 2016 average product selling price for the company's steel
operations increased $100 to
$740 per ton. The average
ferrous scrap cost per ton melted increased $24 to $251 per
ton.
Third quarter 2016 operating income attributable to the
company's sheet products increased 29 percent when compared to the
sequential second quarter, driven by metal spread expansion, which
more than offset the nine percent decline in flat roll
shipments. The successful addition of GalvalumeĀ® coating
capabilities to the company's Columbus Flat Roll Division product
offerings, resulted in about 25,000 tons of lost July shipments due
to the required down time on one of the galvanizing lines for
equipment installation. Operating income from long products
decreased 34 percent, as lower shipments more than offset metal
spread improvement related to increased average product pricing
outpacing higher scrap costs in the quarter. Aside from the
construction sector, long product steel demand is generally
challenged, and selling values are under pressure from excess
domestic production capability. The company's steel
production utilization rate was 85 percent in the third quarter
2016, compared to 95 percent in the sequential quarter and compared
to the domestic industry utilization rate of approximately 70
percent.
Third quarter 2016 operating income from the company's metals
recycling operations was $10 million,
compared to $15 million in the
sequential quarter. Ferrous shipments decreased in the
quarter, as domestic steel mill utilization rates declined and
metal spread remained steady.
The company's fabrication operations recorded third quarter 2016
operating income of $18 million,
compared to $24 million in the
sequential second quarter. Shipments were steady in the
quarter; however, metal spread compression occurred as product
pricing appreciation was more than offset by higher cost steel
utilized in the third quarter 2016.
The company also recorded a litigation charge in the third
quarter 2016 related to the settlement of the Standard Iron
Works v. Arcelor Mittal et al. direct purchaser class action
lawsuit in the amount of approximately $5
million. The settlement requires preliminary and final
approval by the Court, which the company anticipates it will
receive.
Year-to-Date September 30, 2016
Comparison
For the nine months ended September 30,
2016, net income was $362
million, or $1.48 per diluted
share, on net sales of $5.9 billion,
as compared to net income of $123
million, or $0.51 per diluted
share, on net sales of $6.0 billion
for the nine months ended September
30, 2015. Year-to-date 2016 shipments meaningfully
improved for the company's steel and fabrication operating
platforms. However, same period consolidated net sales
decreased two percent, as a result of decreased steel and metals
recycling selling values. Year-to-date 2016 consolidated
operating income increased $364
million, or 118 percent, based primarily on improved
earnings from the company's steel operations. The average
year-to-date selling price for the company's steel operations
decreased $43 to $651 per ton. The average year-to-date
ferrous scrap cost per ton melted decreased $51 to $220 per
ton.
The company generated strong cash flow from operations of
$643 million during the nine months
ended September 30, 2016, with
relatively flat working capital requirements. Including its
undrawn revolver and available cash of $1.1
billion, the company maintained record liquidity of over
$2.2 billion at September 30, 2016.
Outlook
"Steel customer inventory levels remain lower than historical
levels and year-over-year steel imports have declined approximately
20 percent," said Millett. "However, there has been buyer
hesitancy in anticipation of possible declines in scrap pricing,
with an expectation that this might further pressure steel
prices. Additionally, we are heading into a seasonally lower
demand environment and customers are hesitant to significantly
increase inventories before the end of the year. Due to these
factors, we anticipate lower sequential volumes in our operating
platforms, which is seasonally typical for the calendar fourth
quarter and sequentially weaker realized steel pricing.
Although domestic automotive production may be coming off record
levels, we believe 2017 automotive steel consumption will be steady
with Mexico growing production,
and that there will be additional growth in the construction
sector, especially for larger, public sector infrastructure
projects. We could also see some improved activity within the
energy sector next year.
"We continue to see progress at our Columbus Flat Roll
Division. The successful market and product diversification
that we achieved at Columbus
during 2015 is one of our key differentiators for anticipated
improved annual profitability in 2016. Columbus achieved near record nine month
production levels for 2016, while continuing to improve and
diversify its value-added production capability. The team
successfully added the capability to produce value-added GalvalumeĀ®
flat roll products during the third quarter 2016, and the
$100 million paint line addition is
on schedule to begin production in the first quarter 2017, adding
250,000 tons of value-added painting
capability.
"We continue to strengthen our financial position through strong
cash flow generation and the execution of our long-term
strategy. We are pleased that due to our strong balance sheet
and continued free cash flow generation, we are able to add the
optionality of a share repurchase program to our capital allocation
strategy. We are well-positioned for growth, and remain
focused on delivering shareholder value through organic and
strategic growth opportunities."
Supplemental
Information
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Third
Quarter
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Year to
Date
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2016
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2015
|
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2016
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2015
|
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1Q 2016
|
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2Q 2016
|
External Net
Sales
|
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(Dollars in
thousands)
|
Steel
|
|
$
|
1,557,502
|
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$
|
1,351,387
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$
|
4,241,382
|
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$
|
4,112,483
|
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$
|
1,217,176
|
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$
|
1,466,704
|
Fabrication
|
|
|
177,429
|
|
|
174,954
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528,026
|
|
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490,490
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|
|
180,055
|
|
|
170,542
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Metals
Recycling
|
|
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306,092
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345,572
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886,559
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1,162,378
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269,407
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311,060
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Other
|
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60,287
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79,010
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210,546
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238,014
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74,663
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75,596
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Consolidated
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$
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2,101,310
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$
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1,950,923
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$
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5,866,513
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$
|
6,003,365
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$
|
1,741,301
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$
|
2,023,902
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Operating
Income
|
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Steel
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$
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311,127
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$
|
126,735
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$
|
723,348
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$
|
344,943
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$
|
135,692
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$
|
276,529
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Fabrication
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|
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17,814
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|
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36,733
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|
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73,401
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|
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85,754
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|
|
32,075
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|
|
23,512
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Metals
Recycling
|
|
|
9,747
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|
|
463
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30,793
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|
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12,283
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|
|
6,360
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|
|
14,686
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Operations
|
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338,688
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163,931
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827,542
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442,980
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174,127
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314,727
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Non-cash Amortization
of Intangible Assets
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(7,208)
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(6,041)
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(21,359)
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(18,308)
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(7,100)
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(7,051)
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Profit Sharing
Expense
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|
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(22,255)
|
|
|
(9,008)
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|
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(51,722)
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(18,637)
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|
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(9,291)
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(20,176)
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Non-segment
Operations
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|
|
(25,370)
|
|
|
(17,853)
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|
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(82,519)
|
|
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(97,676)
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|
|
(25,771)
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|
|
(31,378)
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Consolidated
Operating Income
|
|
|
283,855
|
|
|
131,029
|
|
|
671,942
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308,359
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|
|
131,965
|
|
|
256,122
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Minnesota Idle
Charges (Including Noncontrolling
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Interests)
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-
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-
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-
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|
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33,167
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-
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-
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Iron Dynamics Outage
Impact
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-
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-
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-
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9,403
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-
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-
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Adjusted Operating
Income
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$
|
283,855
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$
|
131,029
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$
|
671,942
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$
|
350,929
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$
|
131,965
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$
|
256,122
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External
Shipments
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Steel
(In tons)
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2,104,219
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2,031,096
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6,517,253
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5,926,152
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2,121,872
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|
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2,291,162
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Steel Shipped to
Internal Locations
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167,012
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160,108
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522,549
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456,480
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155,337
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200,200
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Fabrication (In tons)
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142,585
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128,753
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430,539
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351,144
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145,126
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|
|
142,828
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Metals
Recycling
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Nonferrous (In
000's of pounds)
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|
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254,922
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|
|
261,072
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|
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744,974
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755,925
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242,560
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|
|
247,492
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Ferrous (In gross
tons)
|
|
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468,498
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551,076
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|
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1,511,532
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1,819,420
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503,787
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|
|
539,247
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Ferrous Scrap
Shipped to Internal Steel Mills
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|
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774,779
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803,263
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2,383,223
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2,125,675
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|
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801,367
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|
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807,077
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|
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|
|
Other Operating
Information
|
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|
|
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|
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|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Average External Sales
Price (Per ton shipped)
|
|
$
|
740
|
|
$
|
665
|
|
$
|
651
|
|
$
|
694
|
|
$
|
574
|
|
$
|
640
|
Average Ferrous Cost
(Per ton melted)
|
|
$
|
251
|
|
$
|
252
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|
$
|
220
|
|
$
|
271
|
|
$
|
184
|
|
$
|
227
|
Flat Roll
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler Division
|
|
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742,785
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|
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637,289
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|
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2,228,746
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1,937,897
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|
|
712,138
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|
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773,823
|
Columbus Division
|
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|
680,750
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|
|
712,992
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|
|
2,242,089
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|
|
1,971,005
|
|
|
756,933
|
|
|
804,406
|
The
Techs
|
|
|
197,259
|
|
|
190,130
|
|
|
595,097
|
|
|
518,303
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|
|
188,269
|
|
|
209,569
|
Long Product
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail Division-Structural
|
|
|
274,482
|
|
|
241,923
|
|
|
801,041
|
|
|
706,905
|
|
|
234,046
|
|
|
292,513
|
-Rail
|
|
|
56,212
|
|
|
64,150
|
|
|
179,245
|
|
|
205,770
|
|
|
58,942
|
|
|
64,091
|
Engineered Bar Products Division
|
|
|
110,633
|
|
|
132,901
|
|
|
358,426
|
|
|
409,826
|
|
|
125,200
|
|
|
122,593
|
Roanoke Bar Division
|
|
|
119,555
|
|
|
130,314
|
|
|
384,801
|
|
|
396,232
|
|
|
125,471
|
|
|
139,775
|
Steel of West Virginia
|
|
|
75,080
|
|
|
81,505
|
|
|
235,882
|
|
|
236,694
|
|
|
76,209
|
|
|
84,593
|
Total Steel Shipments
(In tons)
|
|
|
2,256,756
|
|
|
2,191,204
|
|
|
7,025,327
|
|
|
6,382,632
|
|
|
2,277,208
|
|
|
2,491,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Production (In tons)
|
|
|
2,341,659
|
|
|
2,252,412
|
|
|
7,266,265
|
|
|
6,546,570
|
|
|
2,363,252
|
|
|
2,561,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton shipped)
|
|
$
|
1,253
|
|
$
|
1,359
|
|
$
|
1,232
|
|
$
|
1,397
|
|
$
|
1,241
|
|
$
|
1,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Taxes
|
|
$
|
243,305
|
|
$
|
93,705
|
|
$
|
561,313
|
|
$
|
175,805
|
|
$
|
96,714
|
|
$
|
221,294
|
Net
Interest Expense
|
|
|
34,867
|
|
|
36,739
|
|
|
106,396
|
|
|
116,503
|
|
|
36,150
|
|
|
35,379
|
Depreciation
|
|
|
65,473
|
|
|
66,677
|
|
|
197,082
|
|
|
198,367
|
|
|
65,375
|
|
|
66,234
|
Amortization of Intangible Assets
|
|
|
7,208
|
|
|
6,041
|
|
|
21,359
|
|
|
18,308
|
|
|
7,100
|
|
|
7,051
|
Non-controlling Interest
|
|
|
2,984
|
|
|
1,750
|
|
|
5,929
|
|
|
11,782
|
|
|
1,419
|
|
|
1,526
|
EBITDA
|
|
|
353,837
|
|
|
204,912
|
|
|
892,079
|
|
|
520,765
|
|
|
206,758
|
|
|
331,484
|
Non-cash
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Hedging (Gain) Loss
|
|
|
(880)
|
|
|
738
|
|
|
627
|
|
|
2,145
|
|
|
319
|
|
|
1,188
|
Inventory Valuation
|
|
405
|
|
|
3,127
|
|
|
832
|
|
|
26,192
|
|
|
192
|
|
|
235
|
Equity Based Compensation
|
|
|
5,895
|
|
|
5,333
|
|
|
20,161
|
|
|
18,888
|
|
|
6,979
|
|
|
7,287
|
Financing Expenses
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,326
|
|
|
-
|
|
|
-
|
Adjusted
EBITDA
|
|
$
|
359,257
|
|
$
|
214,110
|
|
$
|
913,699
|
|
$
|
571,316
|
|
$
|
214,248
|
|
$
|
340,194
|
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss
third quarter 2016 operating and financial results on Thursday, October 20, 2016, at 10:00
a.m. Eastern Time. You may access the call and find
dial-in information on the Investors 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
October 25, 2016.
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 facilities located throughout
the United States and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous scrap.
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 Adjusted Operating Income, Adjusted Net Income,
Adjusted Diluted Earnings Per Share, 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 Statements
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, which we
generally precede or accompany by such typical conditional words as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project" or "expect," or by the words "may," "will," or "should,"
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 Steel Dynamics' 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 under the
headings Special Note Regarding Forward-Looking Statements
and Risk Factors, 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)
(in thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three
Months
|
|
September
30,
|
|
September
30,
|
|
Ended
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
June 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,101,310
|
|
$
|
1,950,923
|
|
$
|
5,866,513
|
|
$
|
6,003,365
|
|
$
|
2,023,902
|
Costs of goods
sold
|
|
1,692,807
|
|
|
1,722,197
|
|
|
4,841,591
|
|
|
5,415,854
|
|
|
1,643,519
|
Gross
profit
|
|
408,503
|
|
|
228,726
|
|
|
1,024,922
|
|
|
587,511
|
|
|
380,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
95,185
|
|
|
82,648
|
|
|
279,899
|
|
|
242,207
|
|
|
97,034
|
Profit
sharing
|
|
22,255
|
|
|
9,008
|
|
|
51,722
|
|
|
18,637
|
|
|
20,176
|
Amortization of
intangible assets
|
|
7,208
|
|
|
6,041
|
|
|
21,359
|
|
|
18,308
|
|
|
7,051
|
Operating
income
|
|
283,855
|
|
|
131,029
|
|
|
671,942
|
|
|
308,359
|
|
|
256,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
36,199
|
|
|
37,084
|
|
|
109,888
|
|
|
117,334
|
|
|
36,646
|
Other expense
(income), net
|
|
4,351
|
|
|
239
|
|
|
741
|
|
|
15,219
|
|
|
(1,818)
|
Income before
income taxes
|
|
243,305
|
|
|
93,706
|
|
|
561,313
|
|
|
175,806
|
|
|
221,294
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
88,892
|
|
|
34,839
|
|
|
205,139
|
|
|
64,660
|
|
|
80,851
|
Net
income
|
|
154,413
|
|
|
58,867
|
|
|
356,174
|
|
|
111,146
|
|
|
140,443
|
Net loss attributable
to noncontrolling interests
|
|
2,984
|
|
|
1,750
|
|
|
5,929
|
|
|
11,782
|
|
|
1,526
|
Net income
attributable to Steel Dynamics, Inc.
|
$
|
157,397
|
|
$
|
60,617
|
|
$
|
362,103
|
|
$
|
122,928
|
|
$
|
141,969
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders
|
$
|
0.65
|
|
$
|
0.25
|
|
$
|
1.49
|
|
$
|
0.51
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
243,761
|
|
|
242,074
|
|
|
243,539
|
|
|
241,836
|
|
|
243,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders, including the effect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of
assumed conversions when dilutive
|
$
|
0.64
|
|
$
|
0.25
|
|
$
|
1.48
|
|
$
|
0.51
|
|
$
|
0.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
share equivalents outstanding
|
|
245,682
|
|
|
243,822
|
|
|
245,227
|
|
|
243,393
|
|
|
245,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.1400
|
|
$
|
0.1375
|
|
$
|
0.4200
|
|
$
|
0.4125
|
|
$
|
0.1400
|
Steel Dynamics,
Inc.
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
Assets
|
2016
|
|
|
2015
|
|
(unaudited)
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
1,051,489
|
|
|
$
|
727,032
|
Accounts
receivable, net
|
|
779,459
|
|
|
|
613,605
|
Inventories
|
|
1,275,575
|
|
|
|
1,149,390
|
Other
current assets
|
|
30,121
|
|
|
|
47,914
|
Total current
assets
|
|
3,136,644
|
|
|
|
2,537,941
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
2,928,226
|
|
|
|
2,951,210
|
|
|
|
|
|
|
|
Restricted
cash
|
|
19,571
|
|
|
|
19,565
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
291,814
|
|
|
|
278,960
|
|
|
|
|
|
|
|
Goodwill
|
|
399,867
|
|
|
|
397,470
|
|
|
|
|
|
|
|
Other
assets
|
|
11,440
|
|
|
|
16,936
|
Total
assets
|
$
|
6,787,562
|
|
|
$
|
6,202,082
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
437,836
|
|
|
$
|
283,355
|
Income
taxes payable
|
|
35,733
|
|
|
|
2,023
|
Accrued
expenses
|
|
304,389
|
|
|
|
233,232
|
Current
maturities of long-term debt
|
|
16,155
|
|
|
|
16,680
|
Total current
liabilities
|
|
794,113
|
|
|
|
535,290
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,570,837
|
|
|
|
2,577,976
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
450,159
|
|
|
|
400,770
|
|
|
|
|
|
|
|
Other
liabilities
|
|
20,751
|
|
|
|
16,595
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
126,340
|
|
|
|
126,340
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
640
|
|
|
|
638
|
Treasury
stock, at cost
|
|
(392,051)
|
|
|
|
(396,455)
|
Additional paid-in capital
|
|
1,132,365
|
|
|
|
1,110,253
|
Retained
earnings
|
|
2,224,963
|
|
|
|
1,965,291
|
Total Steel Dynamics,
Inc. equity
|
|
2,965,917
|
|
|
|
2,679,727
|
Noncontrolling interests
|
|
(140,555)
|
|
|
|
(134,616)
|
Total
equity
|
|
2,825,362
|
|
|
|
2,545,111
|
Total liabilities
and equity
|
$
|
6,787,562
|
|
|
$
|
6,202,082
|
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
154,413
|
|
$
|
58,867
|
|
$
|
356,174
|
|
$
|
111,146
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
74,190
|
|
|
74,211
|
|
|
222,970
|
|
|
221,306
|
Equity-based
compensation
|
|
5,924
|
|
|
5,332
|
|
|
21,565
|
|
|
20,232
|
Deferred income
taxes
|
|
18,478
|
|
|
13,130
|
|
|
53,879
|
|
|
46,214
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
29,384
|
|
|
36,361
|
|
|
(149,810)
|
|
|
122,296
|
Inventories
|
|
(76,013)
|
|
|
(8,763)
|
|
|
(102,339)
|
|
|
317,410
|
Accounts payable
|
|
(49,171)
|
|
|
(62,757)
|
|
|
117,220
|
|
|
(127,075)
|
Income taxes receivable/payable
|
|
(7,421)
|
|
|
19,888
|
|
|
40,960
|
|
|
29,309
|
Other assets and liabilities
|
|
46,556
|
|
|
28,109
|
|
|
82,592
|
|
|
(32,541)
|
Net cash provided by
operating activities
|
|
196,340
|
|
|
164,378
|
|
|
643,211
|
|
|
708,297
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(59,774)
|
|
|
(30,286)
|
|
|
(123,168)
|
|
|
(86,458)
|
Acquisition of business, net of cash acquired
|
|
(109,065)
|
|
|
(45,000)
|
|
|
(109,065)
|
|
|
(45,000)
|
Other
investing activities
|
|
1,507
|
|
|
3,715
|
|
|
5,767
|
|
|
6,184
|
Net cash used in
investing activities
|
|
(167,332)
|
|
|
(71,571)
|
|
|
(226,466)
|
|
|
(125,274)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term debt
|
|
12,911
|
|
|
67,999
|
|
|
97,018
|
|
|
179,033
|
Repayment of current and long-term debt
|
|
(9,999)
|
|
|
(73,420)
|
|
|
(95,253)
|
|
|
(561,428)
|
Dividends paid
|
|
(34,124)
|
|
|
(33,282)
|
|
|
(101,639)
|
|
|
(94,281)
|
Stock
option exercise proceeds, including related tax effect
|
|
1,028
|
|
|
302
|
|
|
7,603
|
|
|
7,261
|
Other
financing activities
|
|
(1)
|
|
|
(17)
|
|
|
(17)
|
|
|
(1,181)
|
Net cash used in
financing activities
|
|
(30,185)
|
|
|
(38,418)
|
|
|
(92,288)
|
|
|
(470,596)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and equivalents
|
|
(1,177)
|
|
|
54,389
|
|
|
324,457
|
|
|
112,427
|
Cash and equivalents
at beginning of period
|
|
1,052,666
|
|
|
419,401
|
|
|
727,032
|
|
|
361,363
|
Cash and
equivalents at end of period
|
$
|
1,051,489
|
|
$
|
473,790
|
|
$
|
1,051,489
|
|
$
|
473,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
$
|
26,225
|
|
$
|
26,701
|
|
$
|
97,605
|
|
$
|
115,345
|
Cash
paid (received) for federal and state income taxes, net
|
$
|
75,860
|
|
$
|
1,172
|
|
$
|
104,124
|
|
$
|
(10,321)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-third-quarter-2016-results-300347912.html
SOURCE Steel Dynamics, Inc.