IRVING, Texas, Oct. 14,
2021 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC)
today announced financial results for its fiscal fourth quarter
ended August 31, 2021. Earnings from continuing
operations were $152.3 million, or
$1.24 per diluted share, on net sales
of $2.0 billion, compared to prior
year earnings from continuing operations of $67.8 million, or $0.56 per diluted share, on net sales of
$1.4 billion. For the full
year, earnings from continuing operations were $412.9 million, or $3.38 per diluted share, compared to $278.3 million, or $2.31 per diluted share in the prior year.
During the fourth quarter of fiscal 2021, the Company recorded a
net after-tax charge of $1.9 million
related to the impairment of recycling assets. Excluding this
item, fourth quarter adjusted earnings from continuing operations
were $154.2 million, or $1.26 per diluted share, compared to adjusted
earnings from continuing operations of $95.3
million, or $0.79 per diluted
share, in the prior year period. "Adjusted EBITDA from
continuing operations", "core EBITDA from continuing operations",
"adjusted earnings from continuing operations" and "adjusted
earnings from continuing operations per diluted share" are non-GAAP
financial measures. Details, including a reconciliation of each
such non-GAAP financial measure, to the most directly comparable
measure, prepared and presented in accordance with GAAP can be
found in the financial tables that follow.
Barbara R. Smith, Chairman of the
Board, President and Chief Executive Officer, commented, "CMC's
performance during fiscal 2021 was exceptional. Our financial
results once again demonstrate CMC's significantly enhanced
earnings capabilities following several years of methodical
strategic transformation. Yesterday, we announced our first
dividend increase in over a decade and a sizeable new share
repurchase program, reflecting the board's confidence in the
Company's enhanced financial position and future prospects.
We have built a strong operating platform that will allow us to
continue pursuing value accretive growth, while returning a
meaningful portion of free cash flow to investors and maintaining a
high-quality balance sheet."
Ms. Smith continued, "Looking at the quarter, I am extremely
proud of the CMC team's execution on multiple fronts.
Commercially and operationally, we responded to robust market
demand with record shipment and production levels at several of our
steel mills. This heightened activity did not detract from
our ability to continue building for the future. Our team in
Europe successfully ramped up
CMC's new rolling line, and we made meaningful progress at the
future Arizona 2 micro mill site
in North America. In addition, on
September 29th we reached
an agreement to sell our Rancho Cucamonga site for an expected
$300 million, which will be
reinvested directly into Arizona
2. Importantly, we also maintained focus on keeping our
employees safe, with several operations achieving record low
incident rates during the year."
The Company's liquidity position as of August 31, 2021
remained solid, with cash and cash equivalents of $497.7 million, and availability of $668.2 million under the Company's credit and
accounts receivable facilities.
On October 13, 2021, the board of directors declared a
quarterly dividend of $0.14 per share
of CMC common stock payable to stockholders of record on
October 27, 2021. This represents a 17% increase over the
previous dividend. The dividend will be paid on November 10,
2021, and marks 228 consecutive
quarterly dividend payments by the Company.
Business Segments - Fiscal Fourth Quarter 2021 Review
The North America segment
generated record adjusted EBITDA of $212.0
million for the fourth quarter of fiscal 2021, an increase
of 22% compared to $174.2 million in
the prior year period. This improvement was driven by
increased margins across multiple products lines, coupled with
higher shipments of steel products and raw materials. These
positive factors were partially offset by a year-over-year increase
in controllable costs per ton of finished steel shipped, due
largely to inflationary pressures for freight and steelmaking
consumables.
Shipment volumes of finished steel, which include steel products
and downstream products, increased by 2% from the prior year fourth
quarter. Demand for rebar from the mills remained relatively
steady, but shipments declined modestly from the prior year due to
a shift in mix toward merchant bar and wire rod. Shipments of
merchant and other products increased by 29% from the prior year,
driven by the broad reopening of the U.S. economy.
Margins over scrap cost on steel products increased $103 per ton from the prior year period and
$41 per ton compared to the prior
quarter. Market conditions were favorable for each of CMC's
key products, leading to mill volume growth of 5% and an increase
of $300 per ton in average selling
price compared to the fourth quarter of fiscal 2020. Margin
over scrap cost on downstream products declined compared to a year
ago, driven by fulfillment of fabrication contracts that were
booked prior to the fiscal 2021 increase in scrap costs.
Future pricing indicators on new work entering the backlog were
positive during the quarter, as average price levels for bids and
new awards increased significantly from the prior year
quarter.
The Europe segment reported
record adjusted EBITDA of $67.7
million for the fourth quarter of fiscal 2021, up 195%
compared to adjusted EBITDA of $22.9
million for the prior year quarter. The improvement
was driven by a significant expansion in margin over scrap as well
as volume growth, as demand for steel products from both the
construction and industrial end markets were solid during the
quarter. Resilient construction activity supported a 16%
increase in rebar shipments compared to a year ago, while the
start-up of the third rolling line and the continuing manufacturing
recovery in Poland and
Central Europe drove 24% growth in
volumes of merchant and other steel products. Average selling
price increased by $317 per ton
compared to the prior year quarter, and $99 per ton sequentially.
Outlook
Ms. Smith said, "Based on our current view of the marketplace,
we anticipate our strong operating and financial performance will
continue in fiscal 2022. Volumes should remain solid,
supported by a replenished construction backlog in North America, as well as broad strength
across key end markets in both North
America and Europe."
"In the first quarter of fiscal 2022, we expect finished steel
volumes to follow typical seasonal patterns, which have
historically declined modestly from our fourth quarter
levels. We expect first quarter margins to remain consistent
with the historical high levels earned in the fourth quarter," Ms.
Smith added.
Conference Call
CMC invites you to listen to a live broadcast of its fourth
quarter of fiscal 2021 conference call today, Thursday,
October 14, 2021, at 11:00 a.m.
ET. Barbara R. Smith,
Chairman of the Board, President, and Chief Executive Officer, and
Paul Lawrence, Vice President and
Chief Financial Officer, 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 broadcast
are located on CMC's website under "Investors."
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and fabricate steel and metal products and provide related
materials and services through a network including seven electric
arc furnace ("EAF") mini mills, two EAF micro mills, one rerolling
mill, steel fabrication and processing plants, construction-related
product warehouses, and metal recycling facilities in the U.S. and
Poland.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws with respect to general
economic conditions, key macro-economic drivers that impact our
business, the effects of ongoing trade actions, the effects of
continued pressure on the liquidity of our customers, potential
synergies and organic growth provided by acquisitions and strategic
investments, demand for our products, metal margins, the effect of
COVID-19 and related governmental and economic responses thereto,
the ability to operate our steel mills at full capacity, future
availability and cost of supplies of raw materials and energy for
our operations, share repurchases, legal proceedings, the
undistributed earnings of our non-U.S. subsidiaries, U.S.
non-residential construction activity, international trade, capital
expenditures, our liquidity and our ability to satisfy future
liquidity requirements, estimated contractual obligations and our
expectations or beliefs concerning future events. The statements in
this release that are not historical statements, are
forward-looking statements. These forward-looking statements can
generally be identified by phrases such as we or our management
"expects," "anticipates," "believes," "estimates," "future,"
"intends," "may," "plans to," "ought," "could," "will," "should,"
"likely," "appears," "projects," "forecasts," "outlook" or other
similar words or phrases, as well as by discussions of strategy,
plans, or intentions.
Our forward-looking statements are based on management's
expectations and beliefs as of the time this news release was
prepared. 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, we undertake 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 any other changes. Important
factors that could cause actual results to differ materially from
our expectations include those described in Part I, Item 1A, "Risk
Factors" of our annual report on Form 10-K for the fiscal year
ended August 31, 2020, and Part II,
Item 1A, "Risk Factors" of our quarterly report on Form 10-Q for
the quarter ended February 28, 2021,
as well as the following: changes in economic conditions which
affect demand for our products or construction activity generally,
and the impact of such changes on the highly cyclical steel
industry; rapid and significant changes in the price of metals,
potentially impairing our inventory values due to declines in
commodity prices or reducing the profitability of our downstream
contracts due to rising commodity pricing; impacts from COVID-19 on
the economy, demand for our products, global supply chain and on
our operations, including the responses of governmental authorities
to contain COVID-19 and the impact of various COVID-19 vaccines;
excess capacity in our industry, particularly in China, and product availability from competing
steel mills and other steel suppliers including import quantities
and pricing; compliance with and changes in existing and future
laws, regulations and other legal requirements and judicial
decisions that govern our business, including increased
environmental regulations associated with climate change and
greenhouse gas emissions; involvement in various environmental
matters that may result in fines, penalties or judgments; potential
limitations in our or our customers' abilities to access credit and
non-compliance by our customers; activity in repurchasing shares of
our common stock under our repurchase program; financial covenants
and restrictions on the operation of our business contained in
agreements governing our debt; our inability to close the sale of
our Rancho Cucamonga property, including if the buyer were to
terminate the purchase agreement during its 60 day due diligence
review period; our ability to successfully identify, consummate and
integrate acquisitions, and the effects that acquisitions may have
on our financial leverage; risks associated with acquisitions
generally, such as the inability to obtain, or delays in obtaining,
required approvals under applicable antitrust legislation and other
regulatory and third party consents and approvals; operating and
startup risks, as well as market risks associated with the
commissioning of new projects could prevent us from realizing
anticipated benefits and could result in a loss of all or a
substantial part of our investments; lower than expected future
levels of revenues and higher than expected future costs; failure
or inability to implement growth strategies in a timely manner;
impact of goodwill impairment charges; impact of long-lived asset
impairment charges; currency fluctuations; global factors, such as
trade measures, military conflicts and political uncertainties,
including the impact of the Biden administration on current trade
regulations, such as Section 232 trade tariffs and quotas, tax
legislation and other regulations which might adversely impact our
business; availability and pricing of electricity, electrodes and
natural gas for mill operations; ability to hire and retain key
executives and other employees; competition from other materials or
from competitors that have a lower cost structure or access to
greater financial resources; information technology interruptions
and breaches in security; ability to make necessary capital
expenditures; availability and pricing of raw materials and other
items over which we exert little influence, including scrap metal,
energy and insurance; unexpected equipment failures; losses or
limited potential gains due to hedging transactions; litigation
claims and settlements, court decisions, regulatory rulings and
legal compliance risks; risk of injury or death to employees,
customers or other visitors to our operations; and civil unrest,
protests and riots.
COMMERCIAL
METALS COMPANY FINANCIAL
& OPERATING STATISTICS (UNAUDITED)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in thousands,
except per ton amounts)
|
|
8/31/2021
|
|
5/31/2021
|
|
2/28/2021
|
|
11/30/2020
|
|
8/31/2020
|
|
8/31/2021
|
|
8/31/2020
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,660,409
|
|
|
$
|
1,558,068
|
|
|
$
|
1,257,486
|
|
|
$
|
1,195,013
|
|
|
$
|
1,224,849
|
|
|
$
|
5,670,976
|
|
|
$
|
4,769,933
|
|
Adjusted
EBITDA
|
|
212,018
|
|
|
207,330
|
|
|
171,612
|
|
|
155,634
|
|
|
174,219
|
|
|
746,594
|
|
|
661,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
331
|
|
|
368
|
|
|
302
|
|
|
330
|
|
|
300
|
|
|
1,331
|
|
|
1,229
|
|
Rebar
|
|
469
|
|
|
500
|
|
|
472
|
|
|
486
|
|
|
498
|
|
|
1,927
|
|
|
1,897
|
|
Merchant and
other
|
|
302
|
|
|
289
|
|
|
268
|
|
|
264
|
|
|
234
|
|
|
1,123
|
|
|
919
|
|
Steel
products
|
|
771
|
|
|
789
|
|
|
740
|
|
|
750
|
|
|
732
|
|
|
3,050
|
|
|
2,816
|
|
Downstream
products
|
|
415
|
|
|
408
|
|
|
343
|
|
|
371
|
|
|
429
|
|
|
1,537
|
|
|
1,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
$
|
1,069
|
|
|
$
|
949
|
|
|
$
|
846
|
|
|
$
|
630
|
|
|
$
|
605
|
|
|
$
|
877
|
|
|
$
|
567
|
|
Steel
products
|
|
900
|
|
|
794
|
|
|
695
|
|
|
612
|
|
|
600
|
|
|
752
|
|
|
618
|
|
Downstream
products
|
|
1,014
|
|
|
963
|
|
|
929
|
|
|
934
|
|
|
970
|
|
|
961
|
|
|
975
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of raw materials
per ton
|
|
$
|
805
|
|
|
$
|
697
|
|
|
$
|
629
|
|
|
$
|
458
|
|
|
$
|
427
|
|
|
$
|
650
|
|
|
$
|
402
|
|
Cost of ferrous scrap
utilized per ton
|
|
434
|
|
|
369
|
|
|
344
|
|
|
266
|
|
|
237
|
|
|
355
|
|
|
238
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
|
466
|
|
|
$
|
425
|
|
|
$
|
351
|
|
|
$
|
346
|
|
|
$
|
363
|
|
|
$
|
397
|
|
|
$
|
380
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
368,290
|
|
|
$
|
284,107
|
|
|
$
|
202,066
|
|
|
$
|
194,596
|
|
|
$
|
179,855
|
|
|
$
|
1,049,059
|
|
|
$
|
699,140
|
|
Adjusted
EBITDA
|
|
67,676
|
|
|
50,005
|
|
|
16,107
|
|
|
14,470
|
|
|
22,927
|
|
|
148,258
|
|
|
62,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
174
|
|
|
141
|
|
|
78
|
|
|
128
|
|
|
150
|
|
|
521
|
|
|
539
|
|
Merchant and
other
|
|
286
|
|
|
263
|
|
|
275
|
|
|
269
|
|
|
230
|
|
|
1,093
|
|
|
933
|
|
Steel
products
|
|
460
|
|
|
404
|
|
|
353
|
|
|
397
|
|
|
380
|
|
|
1,614
|
|
|
1,472
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
products
|
|
$
|
763
|
|
|
$
|
664
|
|
|
$
|
532
|
|
|
$
|
461
|
|
|
$
|
446
|
|
|
$
|
612
|
|
|
$
|
448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of ferrous scrap
utilized per ton
|
|
$
|
448
|
|
|
$
|
376
|
|
|
$
|
328
|
|
|
$
|
262
|
|
|
$
|
250
|
|
|
$
|
357
|
|
|
$
|
246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
|
315
|
|
|
$
|
288
|
|
|
$
|
204
|
|
|
$
|
199
|
|
|
$
|
196
|
|
|
$
|
255
|
|
|
$
|
202
|
|
COMMERCIAL METALS
COMPANY
BUSINESS SEGMENTS
(UNAUDITED)
|
(in
thousands)
|
|
Three Months
Ended
|
|
Year
Ended
|
Net
sales
|
|
8/31/2021
|
|
5/31/2021
|
|
2/28/2021
|
|
11/30/2020
|
|
8/31/2020
|
|
8/31/2021
|
|
8/31/2020
|
North
America
|
|
$
|
1,660,409
|
|
|
$
|
1,558,068
|
|
|
$
|
1,257,486
|
|
|
$
|
1,195,013
|
|
|
$
|
1,224,849
|
|
|
$
|
5,670,976
|
|
|
$
|
4,769,933
|
|
Europe
|
|
368,290
|
|
|
284,107
|
|
|
202,066
|
|
|
194,596
|
|
|
179,855
|
|
|
1,049,059
|
|
|
699,140
|
|
Corporate and
Other
|
|
1,947
|
|
|
2,866
|
|
|
2,718
|
|
|
2,194
|
|
|
4,428
|
|
|
9,725
|
|
|
7,413
|
|
Total net
sales
|
|
$
|
2,030,646
|
|
|
$
|
1,845,041
|
|
|
$
|
1,462,270
|
|
|
$
|
1,391,803
|
|
|
$
|
1,409,132
|
|
|
$
|
6,729,760
|
|
|
$
|
5,476,486
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
from continuing operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
|
212,018
|
|
|
$
|
207,330
|
|
|
$
|
171,612
|
|
|
$
|
155,634
|
|
|
$
|
174,219
|
|
|
$
|
746,594
|
|
|
$
|
661,176
|
|
Europe
|
|
67,676
|
|
|
50,005
|
|
|
16,107
|
|
|
14,470
|
|
|
22,927
|
|
|
148,258
|
|
|
62,007
|
|
Corporate and
Other
|
|
(31,897)
|
|
|
(36,214)
|
|
|
(45,986)
|
|
|
(26,471)
|
|
|
(64,846)
|
|
|
(140,568)
|
|
|
(146,575)
|
|
COMMERCIAL METALS
COMPANY
CONSOLIDATED
STATEMENTS OF EARNINGS (UNAUDITED)
|
|
Three Months Ended
August 31,
|
|
Year Ended August
31,
|
(in thousands,
except share data)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net sales
|
$
|
2,030,646
|
|
|
$
|
1,409,132
|
|
|
$
|
6,729,760
|
|
|
$
|
5,476,486
|
|
Costs and
expenses:
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,686,973
|
|
|
1,145,725
|
|
|
5,623,903
|
|
|
4,531,688
|
|
Selling, general and
administrative expenses
|
136,818
|
|
|
160,292
|
|
|
496,310
|
|
|
502,794
|
|
Interest
expense
|
11,659
|
|
|
13,962
|
|
|
51,904
|
|
|
61,837
|
|
Loss on debt
extinguishment
|
—
|
|
|
1,778
|
|
|
16,841
|
|
|
1,778
|
|
Asset
impairments
|
2,439
|
|
|
1,098
|
|
|
6,784
|
|
|
7,611
|
|
|
1,837,889
|
|
|
1,322,855
|
|
|
6,195,742
|
|
|
5,105,708
|
|
Earnings from
continuing operations before income taxes
|
192,757
|
|
|
86,277
|
|
|
534,018
|
|
|
370,778
|
|
Income
taxes
|
40,444
|
|
|
18,495
|
|
|
121,153
|
|
|
92,476
|
|
Earnings from
continuing operations
|
152,313
|
|
|
67,782
|
|
|
412,865
|
|
|
278,302
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
from discontinued operations before income taxes
|
—
|
|
|
(34)
|
|
|
—
|
|
|
1,907
|
|
Income
taxes
|
—
|
|
|
125
|
|
|
—
|
|
|
706
|
|
Earnings (loss) from
discontinued operations
|
—
|
|
|
(159)
|
|
|
—
|
|
|
1,201
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
152,313
|
|
|
$
|
67,623
|
|
|
$
|
412,865
|
|
|
$
|
279,503
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
1.26
|
|
|
$
|
0.57
|
|
|
$
|
3.43
|
|
|
$
|
2.34
|
|
Earnings from
discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Net
earnings
|
$
|
1.26
|
|
|
$
|
0.57
|
|
|
$
|
3.43
|
|
|
$
|
2.35
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
|
|
|
|
|
|
Earnings from
continuing operations
|
$
|
1.24
|
|
|
$
|
0.56
|
|
|
$
|
3.38
|
|
|
$
|
2.31
|
|
Earnings from
discontinued operations
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Net
earnings
|
$
|
1.24
|
|
|
$
|
0.56
|
|
|
$
|
3.38
|
|
|
$
|
2.32
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
$
|
0.12
|
|
|
$
|
0.12
|
|
|
$
|
0.48
|
|
|
$
|
0.48
|
|
Average basic shares
outstanding
|
120,625,533
|
|
|
119,198,785
|
|
|
120,338,357
|
|
|
118,921,854
|
|
Average diluted
shares outstanding
|
122,376,099
|
|
|
120,645,931
|
|
|
121,983,497
|
|
|
120,309,621
|
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
(in thousands,
except share data)
|
|
August 31,
2021
|
|
August 31,
2020
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
497,745
|
|
|
$
|
542,103
|
|
Accounts receivable
(less allowance for doubtful accounts of $5,553 and
$9,597)
|
|
1,105,580
|
|
|
880,728
|
|
Inventories
|
|
935,387
|
|
|
625,393
|
|
Prepaid and other
current assets
|
|
173,033
|
|
|
165,879
|
|
Assets held for
sale
|
|
25,083
|
|
|
—
|
|
Total current
assets
|
|
2,736,828
|
|
|
2,214,103
|
|
Property, plant and
equipment:
|
|
|
|
|
Land
|
|
123,135
|
|
|
143,567
|
|
Buildings and
improvements
|
|
792,915
|
|
|
786,820
|
|
Equipment
|
|
2,435,541
|
|
|
2,364,923
|
|
Construction in
process
|
|
147,166
|
|
|
103,776
|
|
|
|
3,498,757
|
|
|
3,399,086
|
|
Less accumulated
depreciation and amortization
|
|
(1,932,634)
|
|
|
(1,828,019)
|
|
Property, plant and
equipment, net
|
|
1,566,123
|
|
|
1,571,067
|
|
Goodwill
|
|
66,137
|
|
|
64,321
|
|
Other noncurrent
assets
|
|
269,583
|
|
|
232,237
|
|
Total
assets
|
|
$
|
4,638,671
|
|
|
$
|
4,081,728
|
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
450,723
|
|
|
$
|
266,102
|
|
Accrued expenses and
other payables
|
|
475,384
|
|
|
454,977
|
|
Acquired unfavorable
contract backlog
|
|
—
|
|
|
6,035
|
|
Borrowings under
accounts receivable facilities
|
|
26,560
|
|
|
—
|
|
Current maturities of
long-term debt
|
|
27,806
|
|
|
18,149
|
|
Total current
liabilities
|
|
980,473
|
|
|
745,263
|
|
Deferred income
taxes
|
|
112,067
|
|
|
130,810
|
|
Other noncurrent
liabilities
|
|
235,607
|
|
|
250,706
|
|
Long-term
debt
|
|
1,015,415
|
|
|
1,065,536
|
|
Total
liabilities
|
|
2,343,562
|
|
|
2,192,315
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock, par
value $0.01 per share; authorized 200,000,000 shares; issued
129,060,664 shares; outstanding 120,586,589 and 119,220,905
shares
|
|
1,290
|
|
|
1,290
|
|
Additional paid-in
capital
|
|
368,064
|
|
|
358,912
|
|
Accumulated other
comprehensive loss
|
|
(84,820)
|
|
|
(103,764)
|
|
Retained
earnings
|
|
2,162,925
|
|
|
1,807,826
|
|
Less treasury stock,
8,474,075 and 9,839,759 shares at cost
|
|
(152,582)
|
|
|
(175,063)
|
|
Stockholders'
equity
|
|
2,294,877
|
|
|
1,889,201
|
|
Stockholders' equity
attributable to noncontrolling interests
|
|
232
|
|
|
212
|
|
Total stockholders'
equity
|
|
2,295,109
|
|
|
1,889,413
|
|
Total liabilities and
stockholders' equity
|
|
$
|
4,638,671
|
|
|
$
|
4,081,728
|
|
|
|
|
|
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
|
Year Ended August
31,
|
(in
thousands)
|
|
2021
|
|
2020
|
Cash flows from (used
by) operating activities:
|
|
|
|
|
Net
earnings
|
|
$
|
412,865
|
|
|
$
|
279,503
|
|
Adjustments to
reconcile net earnings to cash flows from (used by) operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
167,613
|
|
|
165,758
|
|
Stock-based
compensation
|
|
43,677
|
|
|
31,850
|
|
Deferred income taxes
and other long-term taxes
|
|
(39,873)
|
|
|
49,580
|
|
Loss on debt
extinguishment
|
|
16,841
|
|
|
1,778
|
|
Net gain on disposals
of subsidiaries, assets and other
|
|
(8,807)
|
|
|
(4,213)
|
|
Asset
impairments
|
|
6,784
|
|
|
7,611
|
|
Amortization of
acquired unfavorable contract backlog
|
|
(6,035)
|
|
|
(29,367)
|
|
Other
|
|
541
|
|
|
2,643
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
(228,026)
|
|
|
146,375
|
|
Inventories
|
|
(316,316)
|
|
|
78,903
|
|
Accounts payable,
accrued expenses and other payables
|
|
194,801
|
|
|
45,718
|
|
Other operating assets
and liabilities
|
|
(15,591)
|
|
|
15,065
|
|
Net cash flows from
operating activities
|
|
228,474
|
|
|
791,204
|
|
|
|
|
|
|
Cash flows from (used
by) investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(184,165)
|
|
|
(187,618)
|
|
Proceeds from the sale
of property, plant and equipment and other
|
|
26,424
|
|
|
11,843
|
|
Acquisitions, net of
cash acquired
|
|
(1,888)
|
|
|
(18,137)
|
|
Other
|
|
(2,500)
|
|
|
974
|
|
Net cash flows used
by investing activities
|
|
(162,129)
|
|
|
(192,938)
|
|
|
|
|
|
|
Cash flows from (used
by) financing activities:
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
|
309,279
|
|
|
62,539
|
|
Repayments of
long-term debt
|
|
(368,527)
|
|
|
(246,523)
|
|
Proceeds from accounts
receivable facilities
|
|
296,586
|
|
|
234,482
|
|
Repayments under
accounts receivable facilities
|
|
(269,858)
|
|
|
(237,828)
|
|
Dividends
|
|
(57,766)
|
|
|
(57,056)
|
|
Stock issued under
incentive and purchase plans, net of forfeitures
|
|
(3,166)
|
|
|
(3,420)
|
|
Debt extinguishment
costs
|
|
(13,128)
|
|
|
—
|
|
Debt issuance
costs
|
|
(2,830)
|
|
|
—
|
|
Contribution from
noncontrolling interest
|
|
20
|
|
|
16
|
|
Net cash flows used
by financing activities
|
|
(109,390)
|
|
|
(247,790)
|
|
Effect of exchange
rate changes on cash
|
|
(790)
|
|
|
759
|
|
Increase
(decrease) in cash and cash equivalents
|
|
(43,835)
|
|
|
351,235
|
|
Cash, restricted cash
and cash equivalents at beginning of year
|
|
544,964
|
|
|
193,729
|
|
Cash, restricted cash
and cash equivalents at end of year
|
|
$
|
501,129
|
|
|
$
|
544,964
|
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
497,745
|
|
|
$
|
542,103
|
|
Restricted
cash
|
|
3,384
|
|
|
2,861
|
|
Total cash,
restricted cash and cash equivalents
|
|
$
|
501,129
|
|
|
$
|
544,964
|
|
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
This press release contains financial measures not derived in
accordance with U.S. generally accepted accounting principles
("GAAP"). Reconciliations to the most comparable GAAP measure are
provided below.
Adjusted EBITDA from continuing operations, core EBITDA from
continuing operations, and adjusted earnings from continuing
operations are non-GAAP financial measures. Adjusted earnings from
continuing operations per diluted share is defined as adjusted
earnings from continuing operations on a diluted per share
basis.
Non-GAAP financial measures should be viewed in addition to, and
not as alternatives for, the most directly comparable measures
derived in accordance with GAAP and may not be comparable to
similar measures presented by other companies. However, we believe
that the non-GAAP financial measures provide relevant and useful
information to management, investors, analysts, creditors and other
interested parties in our industry as they allow: (i) comparison of
our earnings to those of our competitors; (ii) a supplemental
measure of our underlying business operational performance; and
(iii) the assessment of period-to-period performance trends.
Management uses non-GAAP financial measures to evaluate financial
performance and set target benchmarks for annual and long-term cash
incentive performance plans.
A reconciliation of earnings from continuing operations to
adjusted EBITDA from continuing operations and core EBITDA from
continuing operations is provided below:
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
8/31/2021
|
|
5/31/2021
|
|
2/28/2021
|
|
11/30/2020
|
|
8/31/2020
|
|
8/31/2021
|
|
8/31/2020
|
Earnings from
continuing operations
|
$
|
152,313
|
|
|
$
|
130,408
|
|
|
$
|
66,233
|
|
|
$
|
63,911
|
|
|
$
|
67,782
|
|
|
$
|
412,865
|
|
|
$
|
278,302
|
|
Interest
expense
|
11,659
|
|
|
11,965
|
|
|
14,021
|
|
|
14,259
|
|
|
13,962
|
|
|
51,904
|
|
|
61,837
|
|
Income
taxes
|
40,444
|
|
|
38,175
|
|
|
20,941
|
|
|
21,593
|
|
|
18,495
|
|
|
121,153
|
|
|
92,476
|
|
Depreciation and
amortization
|
42,437
|
|
|
41,804
|
|
|
41,573
|
|
|
41,799
|
|
|
41,654
|
|
|
167,613
|
|
|
165,749
|
|
Amortization of
acquired unfavorable contract backlog
|
(1,495)
|
|
|
(1,508)
|
|
|
(1,509)
|
|
|
(1,523)
|
|
|
(10,691)
|
|
|
(6,035)
|
|
|
(29,367)
|
|
Asset
impairments
|
2,439
|
|
|
277
|
|
|
474
|
|
|
3,594
|
|
|
1,098
|
|
|
6,784
|
|
|
7,611
|
|
Adjusted EBITDA from
continuing operations
|
247,797
|
|
|
221,121
|
|
|
141,733
|
|
|
143,633
|
|
|
132,300
|
|
|
754,284
|
|
|
576,608
|
|
Non-cash equity
compensation
|
8,119
|
|
|
13,800
|
|
|
12,696
|
|
|
9,062
|
|
|
9,875
|
|
|
43,677
|
|
|
31,850
|
|
Gain on sale of
assets
|
—
|
|
|
(4,457)
|
|
|
(5,877)
|
|
|
—
|
|
|
—
|
|
|
(10,334)
|
|
|
—
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
16,841
|
|
|
—
|
|
|
1,778
|
|
|
16,841
|
|
|
1,778
|
|
Facility
closure
|
—
|
|
|
—
|
|
|
5,694
|
|
|
5,214
|
|
|
2,903
|
|
|
10,908
|
|
|
11,105
|
|
Labor cost government
refund
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,348)
|
|
|
(2,985)
|
|
|
(1,348)
|
|
|
(2,985)
|
|
Acquisition
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,123
|
|
|
—
|
|
|
32,123
|
|
Core EBITDA from
continuing operations
|
$
|
255,916
|
|
|
$
|
230,464
|
|
|
$
|
171,087
|
|
|
$
|
156,561
|
|
|
$
|
175,994
|
|
|
$
|
814,028
|
|
|
$
|
650,479
|
|
A reconciliation of earnings from continuing operations to
adjusted earnings from continuing operations is provided below:
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
8/31/2021
|
|
5/31/2021
|
|
2/28/2021
|
|
11/30/2020
|
|
8/31/2020
|
|
8/31/2021
|
|
8/31/2020
|
Earnings from
continuing operations
|
$
|
152,313
|
|
|
$
|
130,408
|
|
|
$
|
66,233
|
|
|
$
|
63,911
|
|
|
$
|
67,782
|
|
|
$
|
412,865
|
|
|
$
|
278,302
|
|
Gain on sale of
assets
|
—
|
|
|
(4,457)
|
|
|
(5,877)
|
|
|
—
|
|
|
—
|
|
|
(10,334)
|
|
|
—
|
|
Asset
impairments
|
2,439
|
|
|
277
|
|
|
474
|
|
|
3,594
|
|
|
1,098
|
|
|
6,784
|
|
|
7,081
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
16,841
|
|
|
—
|
|
|
1,778
|
|
|
16,841
|
|
|
1,778
|
|
Facility
closure
|
—
|
|
|
—
|
|
|
5,694
|
|
|
5,214
|
|
|
2,903
|
|
|
10,908
|
|
|
11,105
|
|
Acquisition
settlement
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
32,123
|
|
|
—
|
|
|
32,123
|
|
Labor cost government
refund
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,348)
|
|
|
(2,985)
|
|
|
(1,348)
|
|
|
(2,985)
|
|
Total adjustments
(pre-tax)
|
$
|
2,439
|
|
|
$
|
(4,180)
|
|
|
$
|
17,132
|
|
|
$
|
7,460
|
|
|
$
|
34,917
|
|
|
$
|
22,851
|
|
|
$
|
49,102
|
|
Related tax effects
on adjustments
|
(512)
|
|
|
878
|
|
|
(3,598)
|
|
|
(1,593)
|
|
|
(7,392)
|
|
|
(4,825)
|
|
|
(10,371)
|
|
Adjusted earnings
from continuing operations
|
$
|
154,240
|
|
|
$
|
127,106
|
|
|
$
|
79,767
|
|
|
$
|
69,778
|
|
|
$
|
95,307
|
|
|
$
|
430,891
|
|
|
$
|
317,033
|
|
Earnings from
continuing operations per diluted share
|
$
|
1.24
|
|
|
$
|
1.07
|
|
|
$
|
0.54
|
|
|
$
|
0.53
|
|
|
$
|
0.56
|
|
|
$
|
3.38
|
|
|
$
|
2.31
|
|
Adjusted earnings
from continuing operations per diluted share
|
$
|
1.26
|
|
|
$
|
1.04
|
|
|
$
|
0.66
|
|
|
$
|
0.58
|
|
|
$
|
0.79
|
|
|
$
|
3.53
|
|
|
$
|
2.64
|
|
View original
content:https://www.prnewswire.com/news-releases/commercial-metals-company-reports-record-fourth-quarter-and-full-year-fiscal-2021-results-301400101.html
SOURCE Commercial Metals Company