FORT WAYNE, Ind., Jan. 22, 2020 /PRNewswire/ --
Annual 2019 Performance:
- Record steel shipments of 10.8 million tons and record steel
fabrication shipments of 644,000 tons
- Net sales of $10.5 billion, the
company's second-best performance
- Operating income of $987 million
and net income of $671 million, the
company's third-best performance
- Cash flow from operations of $1.4
billion and EBITDA of $1.3
billion, the company's second-best and third-best
performances, respectively
- Achieved Investment grade credit rating designation, and
successfully executed inaugural notes offering
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced fourth
quarter and annual 2019 financial results. The company reported
fourth quarter 2019 net sales of $2.4
billion and net income of $121
million, or $0.56 per diluted
share. Excluding the impact from the following items, the company's
fourth quarter adjusted net income was $134
million, or $0.62 per diluted
share:
- Financing costs related to the company's December 2019 refinancing activities of
approximately $4 million, or
$0.01 per diluted share, and
- Lower earnings resulting from two planned annual maintenance
outages at the company's Butler and Columbus flat roll divisions,
causing higher than normal maintenance and associated costs of
approximately $15 million, or
$0.05 per diluted share. The outages
also reduced flat roll steel shipments by an estimated 70,000 tons
to 80,000 tons, further reducing fourth quarter earnings.
Comparatively, prior year fourth quarter net sales were
$2.9 billion, with net income of
$270 million, or $1.17 per diluted share, which included lower
earnings from planned facility outages of $0.10 per diluted share, and additional
performance-based compensation of $0.04 per diluted share. Sequential third quarter
2019 net sales were $2.5 billion,
with net income of $151 million, or
$0.69 per diluted
share.
"The team delivered a strong 2019 operational and financial
performance in a challenging steel pricing environment, achieving
our third-best annual earnings performance and numerous operational
records, including record annual steel and fabrication shipments,"
said Mark D. Millett, President and
Chief Executive Officer. "We performed at the top of our industry
throughout the year. We achieved operating income of $987 million with EBITDA of $1.3 billion. With near record 2019 cash
flow generation of $1.4 billion, we
achieved record liquidity of $2.8
billion, while at the same time growing our business through
both organic and transactional growth investments, maintaining a
positive cash dividend profile, and executing on our share
repurchase program. In recognition of our growth, strong
balance sheet profile and consistent free cash flow generation
capability, we also achieved investment grade credit designations
from three credit rating agencies. We have a firm foundation for
our continued long-term, strategic growth and value creation.
"Even though 2019 was one of our best years, it was challenged
with high customer steel inventories, as many customers purchased
beyond normal demand levels in 2018," continued Millett.
"Domestic steel demand remained steady in 2019, but as customers
began to destock inventories, steel prices declined throughout the
year, and firmed in the fourth quarter, as destocking subsided and
inventory levels were right-sized. As a result, operating
income from our steel operations was $1.0
billion in 2019, compared to a record $1.9 billion in 2018. Ferrous scrap prices
also declined in eight of the past twelve months during 2019,
resulting in our metals recycling operations earning $28 million in 2019, compared to $88 million last year.
"Looking ahead, steel customer inventory levels have moderated,
and underlying domestic steel demand remains intact for the primary
steel consuming sectors, including automotive and
construction. Customers have been positive concerning the
business outlook for 2020. Additionally, our fabrication
platform has an order backlog that is even stronger entering 2020
than it was at this time last year, and fabrication customer
sentiment remains optimistic, a positive growth indication for
non-residential construction projects. Our fabrication
operations achieved record shipments in 2019, and operating income
of $119 million, almost double last
year's performance," stated Millett.
Fourth Quarter 2019 Comments
Fourth quarter 2019 operating income for the company's steel
operations was $201 million, or 16
percent lower than sequential third quarter results, based on two
planned steel mill outages, seasonally lower shipments and metal
spread compression. The company completed significant planned
maintenance outages at both its Butler and Columbus Flat Roll
divisions, which increased costs by an estimated $15 million and reduced flat roll shipments
during the fourth quarter. The fourth quarter 2019 average
external product selling price for the company's steel operations
decreased $45 sequentially to
$764 per ton. The average ferrous
scrap cost per ton melted at the company's steel mills decreased
$32 sequentially to $243 per ton.
Monthly prime scrap indices declined approximately $35 per gross ton on average from October through
December, compared to July through September 2019. In
concert, the company's metals recycling platform's average ferrous
scrap selling price declined $28 per
gross ton and shipments were seasonally 6% lower sequentially,
resulting in an operating loss of $5
million, compared to an operating profit of $3 million in the third quarter 2019.
Fourth quarter 2019 operating income from the company's steel
fabrication operations was $33
million, remaining steady with strong sequential earnings of
$35 million. Record quarterly
shipments substantially offset the impact of marginal average price
declines. The steel fabrication platform's order backlog
remains strong, and customers remain optimistic concerning
construction activity.
The company generated strong fourth quarter 2019 cash flow from
operations of $409 million and
executed its inaugural investment grade notes offering. The
company issued $400 million of 2.800%
notes due 2024 and $600 million of
3.450% notes due 2030, using the proceeds to repay $700 million of its existing 5.125% senior notes
due 2021 and for other general corporate purposes. These
transactions extended the company's overall debt maturity profile
and will reduce annual interest costs.
Annual 2019 Comparison
Annual 2019 net income was $671
million representing the company's third-best annual
performance, or $3.04 per diluted
share, with net sales of $10.5
billion, as compared to record 2018 net income of
$1.3 billion, or $5.35 per diluted share, with net sales of
$11.8 billon. Annual 2019 net
sales declined 11 percent, while operating income of $987 million decreased 43 percent from record
high 2018 results of $1.7 billion.
The decline in revenues was primarily caused by declining steel
prices related to customer inventory destocking that occurred
throughout the year, and more than offset the benefit of the
company's 2019 record annual steel and fabrication shipments.
The decline in earnings was driven by lower average flat roll steel
selling values, as average 2019 annual prime hot roll coil price
indices decreased approximately $229
per ton, or 28 percent when compared to 2018, resulting in
significant metal margin compression.
Compared to 2018, the average 2019 external product selling
price for the company's overall steel operations decreased
$83 to $839 per ton. The average 2019 ferrous scrap cost
per ton melted at the company's steel mills decreased $48 to $293 per
ton.
During 2019, the company increased value-added shipments from
its steel processing locations, representing 15 percent of the
total steel shipments, compared to 10 percent in 2018. These
locations use steel products as their primary raw material, and the
associated steel procurement costs represented over 16 percent of
the company's steel operations cost of goods sold in 2019, compared
to 12 percent in 2018.
The company generated its second-best annual cash flow from
operations of $1.4 billion, paid cash
dividends of $200 million, and
repurchased $349 million, or five
percent of its outstanding common stock during 2019.
Outlook
"Based on domestic steel demand fundamentals, we are
constructive regarding North American steel market dynamics," said
Millett. "We believe North American steel consumption will
experience modest growth and will be supported by further steel
import reductions and the end of steel inventory destocking.
We believe recent and possible trade actions could have a positive
impact in further reducing unfairly traded steel imports into
the United States, including
coated flat roll steel, which could have a significant positive
impact for Steel Dynamics, as we are the largest non-automotive
flat roll steel coater in the United
States.
"In combination with our existing and newly announced expansion
initiatives, there are firm drivers in place for our continued
growth. We are excited about our Sinton, Texas flat roll steel mill project,
and the associated long-term value creation it will bring through
geographic and value-added product diversification. This
facility is designed to have product size and quality capabilities
beyond that of existing electric-arc-furnace flat roll steel
producers, competing even more effectively with the integrated
steel model and foreign competition. We have targeted regional
markets that represent over 27 million tons of relevant flat roll
steel consumption, which includes the growing Mexican flat roll
steel market. This facility is located and designed to have a
meaningful competitive advantage in those regions. The team
began site work in the second half of 2019, and we are excited to
announce that we recently received the required environmental
permitting to allow for full construction efforts to begin, with
current plans to commence operations mid-year
2021.
"Our differentiated business model and performance-driven
culture clearly demonstrate our through-cycle earnings capability.
We continue to strengthen our financial position through consistent
strong cash flow generation and the execution of our long-term
strategy. We are competitively positioned and remain focused
on delivering long-term value creation for all of our
stakeholders," concluded Millett.
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss
fourth quarter and annual 2019 operating and financial results on
Thursday, January 23, 2020, at 9:00
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 January 28,
2020.
About Steel Dynamics, Inc.
Steel Dynamics 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 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 and Adjusted 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
domestic or global economies, conditions in steel and recycled
metals market places, Steel Dynamics' revenues, costs of purchased
materials, future profitability and earnings, and the operation of
new, existing or planned 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, manufacturing, appliance,
pipe and tube, and other steel-consuming industries; (4)
fluctuations in the cost of key raw materials and supplies
(including steel scrap, iron units, zinc, graphite electrodes, and
energy costs) and our ability to pass on any cost increases; (5)
the impact of domestic and foreign imports, including trade policy,
restrictions, or agreements; (6) unanticipated difficulties in
integrating or starting up new, acquired or planned businesses or
assets; (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: Investors:
SEC Filings.
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three
Months
|
|
December
31,
|
|
December
31,
|
|
Ended
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
September 30,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
2,370,491
|
|
$
|
2,903,892
|
|
$
|
10,485,286
|
|
$
|
11,821,839
|
|
$
|
2,526,845
|
Costs of goods
sold
|
|
2,054,082
|
|
|
2,382,657
|
|
|
8,954,302
|
|
|
9,499,025
|
|
|
2,167,006
|
Gross
profit
|
|
316,409
|
|
|
521,235
|
|
|
1,530,984
|
|
|
2,322,814
|
|
|
359,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
111,968
|
|
|
106,564
|
|
|
436,498
|
|
|
416,640
|
|
|
107,242
|
Profit
sharing
|
|
13,633
|
|
|
41,684
|
|
|
78,029
|
|
|
155,985
|
|
|
17,848
|
Amortization of
intangible assets
|
|
8,847
|
|
|
7,434
|
|
|
29,577
|
|
|
27,780
|
|
|
6,704
|
Operating
income
|
|
181,961
|
|
|
365,553
|
|
|
986,880
|
|
|
1,722,409
|
|
|
228,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
32,322
|
|
|
31,652
|
|
|
127,104
|
|
|
126,620
|
|
|
31,339
|
Other income,
net
|
|
(424)
|
|
|
(7,384)
|
|
|
(15,561)
|
|
|
(23,985)
|
|
|
(4,545)
|
Income before
income taxes
|
|
150,063
|
|
|
341,285
|
|
|
875,337
|
|
|
1,619,774
|
|
|
201,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
26,344
|
|
|
71,433
|
|
|
197,437
|
|
|
363,969
|
|
|
48,643
|
Net
income
|
|
123,719
|
|
|
269,852
|
|
|
677,900
|
|
|
1,255,805
|
|
|
152,608
|
Net (income) loss
attributable to noncontrolling interests
|
|
(2,294)
|
|
|
152
|
|
|
(6,797)
|
|
|
2,574
|
|
|
(1,560)
|
Net income
attributable to Steel Dynamics, Inc.
|
$
|
121,425
|
|
$
|
270,004
|
|
$
|
671,103
|
|
$
|
1,258,379
|
|
$
|
151,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders
|
$
|
0.56
|
|
$
|
1.18
|
|
$
|
3.06
|
|
$
|
5.38
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
215,119
|
|
|
229,245
|
|
|
219,639
|
|
|
233,923
|
|
|
217,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders, including the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effect of assumed conversions when dilutive
|
$
|
0.56
|
|
$
|
1.17
|
|
$
|
3.04
|
|
$
|
5.35
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
share equivalents outstanding
|
|
216,402
|
|
|
230,455
|
|
|
220,748
|
|
|
235,193
|
|
|
219,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.2400
|
|
$
|
0.1875
|
|
$
|
0.9600
|
|
$
|
0.7500
|
|
$
|
0.2400
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
Assets
|
2019
|
|
|
2018
|
|
(unaudited)
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
1,381,460
|
|
|
$
|
828,220
|
Short
term investments
|
|
262,174
|
|
|
|
228,783
|
Accounts
receivable, net
|
|
844,336
|
|
|
|
1,043,756
|
Inventories
|
|
1,689,043
|
|
|
|
1,859,168
|
Other
current assets
|
|
76,012
|
|
|
|
72,730
|
Total current
assets
|
|
4,253,025
|
|
|
|
4,032,657
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
3,135,886
|
|
|
|
2,945,767
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
327,901
|
|
|
|
270,328
|
|
|
|
|
|
|
|
Goodwill
|
|
452,915
|
|
|
|
429,645
|
|
|
|
|
|
|
|
Other
assets
|
|
106,038
|
|
|
|
25,166
|
Total
assets
|
$
|
8,275,765
|
|
|
$
|
7,703,563
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
513,344
|
|
|
$
|
550,754
|
Income
taxes payable
|
|
2,014
|
|
|
|
7,468
|
Accrued
expenses
|
|
401,984
|
|
|
|
436,681
|
Current
maturities of long-term debt
|
|
89,356
|
|
|
|
24,234
|
Total current
liabilities
|
|
1,006,698
|
|
|
|
1,019,137
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,644,988
|
|
|
|
2,352,489
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
484,169
|
|
|
|
435,838
|
|
|
|
|
|
|
|
Other
liabilities
|
|
75,055
|
|
|
|
8,870
|
Total
liabilities
|
|
4,210,910
|
|
|
|
3,816,334
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
143,614
|
|
|
|
111,240
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
646
|
|
|
|
645
|
Treasury
stock, at cost
|
|
(1,525,113)
|
|
|
|
(1,184,243)
|
Additional paid-in capital
|
|
1,181,012
|
|
|
|
1,160,048
|
Retained
earnings
|
|
4,419,296
|
|
|
|
3,958,320
|
Accumulated other comprehensive income
|
|
(7)
|
|
|
|
301
|
Total Steel Dynamics,
Inc. equity
|
|
4,075,834
|
|
|
|
3,935,071
|
Noncontrolling interests
|
|
(154,593)
|
|
|
|
(159,082)
|
Total
equity
|
|
3,921,241
|
|
|
|
3,775,989
|
Total liabilities
and equity
|
$
|
8,275,765
|
|
|
$
|
7,703,563
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
123,719
|
|
$
|
269,852
|
|
$
|
677,900
|
|
$
|
1,255,805
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
80,527
|
|
|
80,560
|
|
|
321,082
|
|
|
317,198
|
Equity-based
compensation
|
|
14,402
|
|
|
14,457
|
|
|
47,631
|
|
|
43,317
|
Deferred income
taxes
|
|
16,769
|
|
|
16,390
|
|
|
51,721
|
|
|
61,827
|
Other
adjustments
|
|
2,365
|
|
|
(1,442)
|
|
|
1,413
|
|
|
(1,245)
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
142,610
|
|
|
184,434
|
|
|
237,805
|
|
|
(145,873)
|
Inventories
|
|
77,977
|
|
|
(5,305)
|
|
|
217,866
|
|
|
(246,213)
|
Other assets
|
|
6,103
|
|
|
3,689
|
|
|
13,735
|
|
|
(3,475)
|
Accounts payable
|
|
(32,278)
|
|
|
(62,464)
|
|
|
(86,445)
|
|
|
37,904
|
Income taxes receivable/payable
|
|
(31,810)
|
|
|
(28,943)
|
|
|
(12,095)
|
|
|
26,471
|
Accrued expenses
|
|
8,678
|
|
|
19,833
|
|
|
(74,323)
|
|
|
69,753
|
Net cash provided by
operating activities
|
|
409,062
|
|
|
491,061
|
|
|
1,396,290
|
|
|
1,415,469
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(158,258)
|
|
|
(62,913)
|
|
|
(451,945)
|
|
|
(239,390)
|
Purchases of short term investments
|
|
(262,133)
|
|
|
(143,783)
|
|
|
(396,159)
|
|
|
(268,783)
|
Proceeds
from maturities of short term investments
|
|
69,489
|
|
|
30,000
|
|
|
362,768
|
|
|
40,000
|
Acquisition of business, net of cash and restricted cash
acquired
|
|
-
|
|
|
-
|
|
|
(97,106)
|
|
|
(433,998)
|
Other
investing activities
|
|
1,733
|
|
|
5,445
|
|
|
5,756
|
|
|
6,907
|
Net cash used in
investing activities
|
|
(349,169)
|
|
|
(171,251)
|
|
|
(576,686)
|
|
|
(895,264)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term debt
|
|
1,199,276
|
|
|
117,937
|
|
|
1,573,962
|
|
|
445,607
|
Repayment of current and long-term debt
|
|
(895,018)
|
|
|
(109,329)
|
|
|
(1,264,152)
|
|
|
(455,491)
|
Dividends paid
|
|
(51,778)
|
|
|
(43,767)
|
|
|
(200,271)
|
|
|
(168,913)
|
Purchase
of treasury stock
|
|
(56,214)
|
|
|
(330,190)
|
|
|
(348,608)
|
|
|
(523,569)
|
Other
financing activities
|
|
(20,302)
|
|
|
(10,177)
|
|
|
(27,561)
|
|
|
(18,501)
|
Net cash provided by
(used in) financing activities
|
|
175,964
|
|
|
(375,526)
|
|
|
(266,630)
|
|
|
(720,867)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents, and restricted cash
|
|
235,857
|
|
|
(55,716)
|
|
|
552,974
|
|
|
(200,662)
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
1,151,540
|
|
|
890,139
|
|
|
834,423
|
|
|
1,035,085
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
1,387,397
|
|
$
|
834,423
|
|
$
|
1,387,397
|
|
$
|
834,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
$
|
62,848
|
|
$
|
53,536
|
|
$
|
134,550
|
|
$
|
124,034
|
Cash
paid for income taxes, net
|
$
|
39,376
|
|
$
|
89,677
|
|
$
|
155,525
|
|
$
|
288,429
|
Steel Dynamics,
Inc.
|
SUPPLEMENTAL
INFORMATION
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
|
Year to
Date
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
|
1Q
2019
|
|
|
2Q
2019
|
|
|
3Q
2019
|
External Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
$
|
1,771,398
|
|
$
|
2,198,459
|
|
$
|
7,924,846
|
|
$
|
8,920,719
|
|
$
|
2,124,570
|
|
$
|
2,106,350
|
|
$
|
1,922,528
|
Fabrication
|
|
|
|
246,173
|
|
|
251,592
|
|
|
962,155
|
|
|
921,148
|
|
|
228,480
|
|
|
241,424
|
|
|
246,078
|
Metals
Recycling
|
|
|
|
242,862
|
|
|
352,555
|
|
|
1,198,007
|
|
|
1,552,600
|
|
|
351,137
|
|
|
323,100
|
|
|
280,908
|
Other
|
|
|
|
110,058
|
|
|
101,286
|
|
|
400,278
|
|
|
427,372
|
|
|
113,248
|
|
|
99,641
|
|
|
77,331
|
Consolidated Net
Sales
|
|
$
|
2,370,491
|
|
$
|
2,903,892
|
|
$
|
10,485,286
|
|
$
|
11,821,839
|
|
$
|
2,817,435
|
|
$
|
2,770,515
|
|
$
|
2,526,845
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
$
|
201,266
|
|
$
|
402,252
|
|
$
|
1,048,059
|
|
$
|
1,855,109
|
|
$
|
312,437
|
|
$
|
294,769
|
|
$
|
239,587
|
Fabrication
|
|
|
|
32,573
|
|
|
14,902
|
|
|
119,263
|
|
|
62,064
|
|
|
20,663
|
|
|
30,706
|
|
|
35,321
|
Metals
Recycling
|
|
|
|
(5,251)
|
|
|
16,954
|
|
|
28,215
|
|
|
88,251
|
|
|
19,958
|
|
|
10,614
|
|
|
2,894
|
Operations
|
|
|
|
228,588
|
|
|
434,108
|
|
|
1,195,537
|
|
|
2,005,424
|
|
|
353,058
|
|
|
336,089
|
|
|
277,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
amortization of intangible assets
|
|
|
|
(8,847)
|
|
|
(7,434)
|
|
|
(29,577)
|
|
|
(27,780)
|
|
|
(7,013)
|
|
|
(7,013)
|
|
|
(6,704)
|
Profit
sharing expense
|
|
|
|
(13,633)
|
|
|
(41,684)
|
|
|
(78,029)
|
|
|
(155,985)
|
|
|
(23,677)
|
|
|
(22,871)
|
|
|
(17,848)
|
Non-segment operations
|
|
|
|
(24,147)
|
|
|
(19,437)
|
|
|
(101,051)
|
|
|
(99,250)
|
|
|
(30,526)
|
|
|
(21,173)
|
|
|
(25,205)
|
Consolidated Operating
Income
|
|
$
|
181,961
|
|
$
|
365,553
|
|
$
|
986,880
|
|
$
|
1,722,409
|
|
$
|
291,842
|
|
$
|
285,032
|
|
$
|
228,045
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
123,719
|
|
$
|
269,852
|
|
$
|
677,900
|
|
$
|
1,255,805
|
|
$
|
204,827
|
|
$
|
196,746
|
|
$
|
152,608
|
Income
taxes
|
|
|
|
26,344
|
|
|
71,433
|
|
|
197,437
|
|
|
363,969
|
|
|
62,236
|
|
|
60,214
|
|
|
48,643
|
Net interest
expense
|
|
|
|
25,355
|
|
|
24,738
|
|
|
99,077
|
|
|
104,042
|
|
|
24,017
|
|
|
25,598
|
|
|
24,107
|
Depreciation
|
|
|
|
70,314
|
|
|
71,765
|
|
|
286,201
|
|
|
283,890
|
|
|
71,846
|
|
|
72,585
|
|
|
71,456
|
Amortization of
intangible assets
|
|
|
|
8,847
|
|
|
7,434
|
|
|
29,577
|
|
|
27,780
|
|
|
7,013
|
|
|
7,013
|
|
|
6,704
|
Noncontrolling
interest
|
|
|
|
(2,294)
|
|
|
151
|
|
|
(6,797)
|
|
|
2,573
|
|
|
(499)
|
|
|
(2,444)
|
|
|
(1,560)
|
EBITDA
|
|
|
252,285
|
|
|
445,373
|
|
|
1,283,395
|
|
|
2,038,059
|
|
|
369,440
|
|
|
359,712
|
|
|
301,958
|
Non-cash
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized hedging (gain) loss
|
|
|
|
589
|
|
|
(2,510)
|
|
|
2,309
|
|
|
(6,600)
|
|
|
1,742
|
|
|
(3,719)
|
|
|
3,697
|
Inventory valuation
|
|
|
352
|
|
|
666
|
|
|
1,222
|
|
|
2,148
|
|
|
241
|
|
|
351
|
|
|
278
|
Equity-based compensation
|
|
|
|
14,400
|
|
|
14,457
|
|
|
42,941
|
|
|
40,390
|
|
|
10,619
|
|
|
9,080
|
|
|
8,842
|
Financing expenses
|
|
|
|
2,780
|
|
|
-
|
|
|
2,780
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Adjusted EBITDA
|
|
$
|
270,406
|
|
$
|
457,986
|
|
$
|
1,332,647
|
|
$
|
2,073,997
|
|
$
|
382,042
|
|
$
|
365,424
|
|
$
|
314,775
|
Other Operating
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average external sales
price (Per ton) (a)
|
|
|
$
|
764
|
|
$
|
940
|
|
$
|
839
|
|
$
|
922
|
|
$
|
902
|
|
$
|
879
|
|
$
|
809
|
Average ferrous cost
(Per ton melted) (b)
|
|
|
$
|
243
|
|
$
|
343
|
|
$
|
293
|
|
$
|
341
|
|
$
|
338
|
|
$
|
316
|
|
$
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Roll
shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler and Columbus Flat Roll divisions
|
|
|
|
1,512,003
|
|
|
1,493,894
|
|
|
6,140,547
|
|
|
6,207,019
|
|
|
1,526,851
|
|
|
1,574,463
|
|
|
1,527,230
|
Steel Processing divisions (c)
|
|
|
|
404,388
|
|
|
262,642
|
|
|
1,585,657
|
|
|
974,266
|
|
|
330,775
|
|
|
422,849
|
|
|
427,645
|
Long Product
shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail Division
|
|
|
|
374,774
|
|
|
389,107
|
|
|
1,469,356
|
|
|
1,630,235
|
|
|
376,263
|
|
|
352,013
|
|
|
366,306
|
Engineered Bar Products Division
|
|
|
|
153,692
|
|
|
217,646
|
|
|
732,774
|
|
|
922,839
|
|
|
206,874
|
|
|
195,644
|
|
|
176,564
|
Roanoke Bar Division
|
|
|
|
125,125
|
|
|
150,607
|
|
|
529,480
|
|
|
559,801
|
|
|
152,400
|
|
|
128,460
|
|
|
123,495
|
Steel of West Virginia
|
|
|
|
80,981
|
|
|
70,367
|
|
|
358,827
|
|
|
315,603
|
|
|
91,248
|
|
|
95,929
|
|
|
90,669
|
Total Shipments (Tons)
|
|
|
2,650,963
|
|
|
2,584,263
|
|
|
10,816,641
|
|
|
10,609,763
|
|
|
2,684,411
|
|
|
2,769,358
|
|
|
2,711,909
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External Shipments (Tons) (a)
|
|
|
2,305,633
|
|
|
2,328,420
|
|
|
9,402,608
|
|
|
9,625,291
|
|
|
2,347,209
|
|
|
2,386,851
|
|
|
2,362,915
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Production (Tons) (a)
|
|
|
2,647,400
|
|
|
2,677,613
|
|
|
10,898,744
|
|
|
10,899,776
|
|
|
2,745,128
|
|
|
2,769,910
|
|
|
2,736,306
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous shipments
(000's of pounds)
|
|
|
|
252,861
|
|
|
278,418
|
|
|
1,068,208
|
|
|
1,131,412
|
|
|
292,038
|
|
|
266,222
|
|
|
257,087
|
Ferrous shipments
(Gross tons)
|
|
|
|
1,096,211
|
|
|
1,215,474
|
|
|
4,627,214
|
|
|
5,123,553
|
|
|
1,171,361
|
|
|
1,189,679
|
|
|
1,169,963
|
External ferrous shipments (Gross tons)
|
|
|
361,504
|
|
|
414,941
|
|
|
1,565,957
|
|
|
1,777,418
|
|
|
382,841
|
|
|
425,477
|
|
|
396,135
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price
(Per ton)
|
|
|
$
|
1,419
|
|
$
|
1,550
|
|
$
|
1,495
|
|
$
|
1,437
|
|
$
|
1,575
|
|
$
|
1,538
|
|
$
|
1,464
|
Shipments
(Tons)
|
|
|
|
173,635
|
|
|
162,292
|
|
|
644,411
|
|
|
641,698
|
|
|
145,222
|
|
|
156,983
|
|
|
168,571
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents all steel
operations
|
|
|
|
(b) Represents ferrous cost per
ton melted at our six electric arc furnace steel mills
|
|
|
|
(c) Includes Heartland, The Techs
and United Steel Supply locations
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/steel-dynamics-reports-fourth-quarter-and-annual-2019-results-300991577.html
SOURCE Steel Dynamics, Inc.