AK Steel (NYSE: AKS) today reported its financial results for the
second quarter of 2019.
Second Quarter 2019 Highlights
- Net income of $66.8 million, or $0.21 per diluted
share; up 18% from a year ago
- Adjusted EBITDA of $151.5 million, or 9.0% of sales; up
2% from a year ago
- Reduced borrowings by $95.0 million
“We reported solid earnings for the second quarter, despite a
dramatic decline in carbon spot market pricing from a year
ago. This reflects our strategy to focus on value-added
products with fixed-price contracts and to deemphasize sales to the
volatile commodity spot market,” said Roger K. Newport, Chief
Executive Officer. “As a result, we generated strong free
cash flow that allowed us to meaningfully reduce debt in the
quarter.”
AK Steel reported net income of $66.8 million, or $0.21 per
diluted share of common stock, for the second quarter of
2019. For the second quarter of 2018, net income was $56.6
million, or $0.18 per diluted share. The company’s adjusted
EBITDA (as defined in the “Non-GAAP Financial Measures” section
below) was $151.5 million, or 9.0% of net sales, for the second
quarter of 2019. Adjusted EBITDA increased 2% from $148.4
million, or 8.5% of net sales, in the second quarter a year
ago. Adjusted EBITDA in the recent second quarter included
mark-to-market gains of $35.4 million from iron ore derivatives,
about half of which will offset expected higher costs for iron ore
later in the year. For the same period in 2018, the company
recorded mark-to-market gains of $2.1 million. Not included
in the financial results for the second quarter of 2019 were
realized gains of $8.7 million for iron ore derivatives contracts
that settled during the period for which the company had recognized
mark-to-market gains in its financial results in prior quarters,
compared to $9.2 million for the same period in 2018.
Net sales for the recent second quarter were $1.7 billion, a 4%
decrease compared to the second quarter of 2018. The decrease
was primarily due to lower shipments to the automotive market, as
expected, and lower spot market selling prices, partly offset by
higher selling prices to the automotive market.
The company reported an increase in liquidity to $1,079.1
million at the end of the second quarter, consisting of cash and
cash equivalents and $1,037.1 million of availability under the
company’s revolving credit facility. The company repaid $95.0
million of borrowings under the credit facility during the quarter
and reported outstanding borrowings under the credit facility of
$285.0 million at June 30, 2019.
|
|
|
|
|
(Dollars in millions, except
per share and per ton data) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
|
Flat-rolled steel shipments
(000 tons) |
|
1,391.4 |
|
|
1,439.8 |
|
|
2,779.8 |
|
|
2,870.7 |
|
Selling price per flat-rolled steel ton |
|
$ |
1,102 |
|
|
$ |
1,101 |
|
|
$ |
1,107 |
|
|
$ |
1,073 |
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
1,680.5 |
|
|
$ |
1,746.6 |
|
|
$ |
3,378.2 |
|
|
$ |
3,405.5 |
|
Operating profit |
|
106.6 |
|
|
99.5 |
|
|
147.8 |
|
|
163.1 |
|
Net income attributable to AK
Steel Holding Corporation |
|
66.8 |
|
|
56.6 |
|
|
62.3 |
|
|
85.3 |
|
Adjusted net income
attributable to AK Steel Holding Corporation (a) |
|
66.8 |
|
|
56.6 |
|
|
139.7 |
|
|
85.3 |
|
Adjusted EBITDA (a) |
|
151.5 |
|
|
148.4 |
|
|
312.4 |
|
|
267.1 |
|
|
|
|
|
|
|
|
|
|
Net income per diluted share
attributable to AK Steel Holding Corporation |
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.27 |
|
Adjusted net income per diluted
share attributable to AK Steel Holding Corporation (a) |
|
0.21 |
|
|
0.18 |
|
|
0.44 |
|
|
0.27 |
|
(a) Adjustments have been made to the six months ended
June 30, 2019 for $77.4 million of charges related to the company’s
announcement of its intention to close its Ashland Works facility,
as previously disclosed. The charge was primarily for
termination of certain take-or-pay supply agreements and
employee-related costs.
OutlookBased on the change in hot-rolled carbon
spot market pricing from approximately $690 per ton in April to
about $555 per ton, the company is updating its annual
guidance. The company’s annual guidance had indicated that
for every $10 change in the carbon hot-rolled coil spot market
price, annual earnings would be impacted by $5 to $7 million.
Accordingly, the company now expects net income to be in the range
of $41 to $61 million, or $0.13 to $0.20 per diluted share.
Excluding the impact of the Ashland Works closure, adjusted net
income is expected to be in the range of $118 to $138 million, or
$0.37 to $0.44 per diluted share, and adjusted EBITDA to be in the
range of $470 to $490 million. This updated guidance aligns
with the company’s previous guidance.
Other outlook items include:
- The company’s adjusted net income and adjusted EBITDA guidance
exclude the effects of the Ashland Works charge of $77.4 million
recorded in the first quarter of 2019, as discussed above.
- Major maintenance outage expenditures in 2019 are still
expected to total in the range of $70 to $80 million, with a
significant portion of the expenditures occurring in the fourth
quarter.
- The other annual guidance items remain unchanged from the
company’s April guidance.
The foregoing outlook is based on AK Steel’s current estimates
and may change based on business conditions and other
factors. There are many other items that could affect the
company’s 2019 results, as outlined in the Forward-Looking
Statements below, including developments in the domestic and global
economies, in the company’s business, in trade actions and the
imposition of tariffs, and in the businesses of the company’s
customers, suppliers and competitors.
Second Quarter 2019 Earnings Conference CallAK
Steel will provide live listening access on its website for the
company’s earnings conference call on July 30, 2019 at 8:30 a.m.
Eastern Time. A link to the webcast is on the company’s home
page at www.aksteel.com. Presentation slides will also be
available on the webcast link and under the Investor Presentations
section on the website. The webcast will be archived on the
company’s website for three months and will be accessible from the
Investor News and Events section.
AK SteelAK Steel is a leading producer of
flat-rolled carbon, stainless and electrical steel products,
primarily for the automotive, infrastructure and manufacturing,
including electrical power, and distributors and converters
markets. Through its subsidiaries, the company also provides
customer solutions with carbon and stainless steel tubing products,
die design and tooling, and hot- and cold-stamped components.
Headquartered in West Chester, Ohio (Greater Cincinnati), the
company has approximately 9,500 employees at manufacturing
operations in the United States, Canada and Mexico, and facilities
in Western Europe. Additional information about AK Steel is
available at www.aksteel.com.
Forward-Looking StatementsCertain statements
made or incorporated by reference in this earnings release reflect
management’s estimates and beliefs and are intended to be
“forward-looking statements” identified in the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. Words such as “expects,” “anticipates,” “believes,”
“intends,” “plans,” “estimates” and other similar references to
future periods typically identify forward-looking statements.
The company cautions readers that forward-looking statements
reflect the company’s current beliefs and judgments, but are not
guarantees of future performance or outcomes. They are based
on a number of assumptions and estimates that are inherently
affected by economic, competitive, regulatory, and operational
risks and uncertainties and contingencies that are beyond the
company’s control. They are also based upon assumptions about
future business decisions and conditions that may change.
Forward-looking statements are only predictions and involve
risks and uncertainties, resulting in the possibility that actual
events or performance will differ materially from such predictions
as a result of certain risk factors. Such factors that could
cause the company’s actual results and financial condition to
differ materially from the results contemplated by such
forward-looking statements include reduced selling prices,
shipments and profits associated with a highly competitive and
cyclical industry; domestic and global steel overcapacity; risks
related to U.S. government actions on trade agreements and
treaties, laws, regulations or policies affecting trade; changes in
the cost of raw materials, supplies and energy; the company’s
significant amount of debt and other obligations; severe financial
hardship or bankruptcy of one or more of the company’s major
customers or key suppliers; the company’s significant proportion of
sales to the automotive market; reduced demand in key product
markets due to competition from aluminum or other alternatives to
steel; excess inventory of raw materials; supply chain disruptions
or poor quality of raw materials or supplies; production disruption
or reduced production levels; the company’s healthcare and pension
obligations; not reaching new labor agreements on a timely basis;
major litigation, arbitrations, environmental issues and other
contingencies; regulatory compliance and changes; climate change
and greenhouse gas emissions; conditions in the financial, credit,
capital and banking markets; the company’s use of derivative
contracts to hedge commodity pricing volatility; potential
permanent idling of facilities; inability to fully realize benefits
of margin enhancement initiatives; information technology security
threats, cybercrime and exposure of private information; the
company’s failure to achieve expected benefits of the Precision
Partners acquisition; and changes in tax laws and regulations; as
well as those risks and uncertainties discussed in more detail in
the company’s Annual Report on Form 10-K for the year ended
December 31, 2018, and its subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K filed with or furnished
to the Securities and Exchange Commission. As such, the
company cautions readers not to place undue reliance on
forward-looking statements, which speak only to the company’s
plans, assumptions and expectations as of the date hereof.
The company undertakes no obligation to publicly update any
forward-looking statement, except as required by law.
Contacts: Media – Lisa H. Jester,
Corporate Manager, Communications and Public Relations (513)
425-2510Investors – Douglas O. Mitterholzer, General Manager,
Investor Relations (513) 425-5215
|
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
(Dollars and shares in millions, except per share and per ton
data) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Flat-rolled steel shipments
(000 tons) |
|
1,391.4 |
|
|
1,439.8 |
|
|
2,779.8 |
|
|
2,870.7 |
|
Selling price per flat-rolled steel ton |
|
$ |
1,102 |
|
|
$ |
1,101 |
|
|
$ |
1,107 |
|
|
$ |
1,073 |
|
|
|
|
|
|
|
|
|
|
Net
sales |
|
$ |
1,680.5 |
|
|
$ |
1,746.6 |
|
|
$ |
3,378.2 |
|
|
$ |
3,405.5 |
|
|
|
|
|
|
|
|
|
|
Cost of products sold |
|
1,449.0 |
|
|
1,512.7 |
|
|
2,914.4 |
|
|
2,976.4 |
|
Selling and administrative
expenses |
|
75.3 |
|
|
79.5 |
|
|
151.9 |
|
|
156.2 |
|
Depreciation |
|
49.6 |
|
|
54.9 |
|
|
100.0 |
|
|
109.8 |
|
Ashland Works closure |
|
— |
|
|
— |
|
|
64.1 |
|
|
— |
|
Total operating costs |
|
1,573.9 |
|
|
1,647.1 |
|
|
3,230.4 |
|
|
3,242.4 |
|
Operating
profit |
|
106.6 |
|
|
99.5 |
|
|
147.8 |
|
|
163.1 |
|
Interest expense |
|
37.1 |
|
|
37.9 |
|
|
75.0 |
|
|
75.5 |
|
Pension and OPEB (income)
expense |
|
(6.9 |
) |
|
(10.0 |
) |
|
(0.4 |
) |
|
(20.0 |
) |
Other (income) expense |
|
(4.5 |
) |
|
(0.2 |
) |
|
(17.2 |
) |
|
(4.1 |
) |
Income before income
taxes |
|
80.9 |
|
|
71.8 |
|
|
90.4 |
|
|
111.7 |
|
Income tax expense
(benefit) |
|
1.0 |
|
|
(0.5 |
) |
|
2.4 |
|
|
(5.4 |
) |
Net
income |
|
79.9 |
|
|
72.3 |
|
|
88.0 |
|
|
117.1 |
|
Less: Net income attributable
to noncontrolling interests |
|
13.1 |
|
|
15.7 |
|
|
25.7 |
|
|
31.8 |
|
Net income
attributable to AK Steel Holding Corporation |
|
$ |
66.8 |
|
|
$ |
56.6 |
|
|
$ |
62.3 |
|
|
$ |
85.3 |
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to AK Steel Holding Corporation: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.27 |
|
Diluted |
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.27 |
|
Weighted-average
shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
315.8 |
|
|
314.7 |
|
|
315.7 |
|
|
314.7 |
|
Diluted |
|
316.5 |
|
|
315.7 |
|
|
316.4 |
|
|
315.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in millions, except per share amounts) |
|
|
|
|
|
|
|
June 30, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
|
$ |
42.2 |
|
|
$ |
48.6 |
|
Accounts receivable, net |
|
675.2 |
|
|
635.8 |
|
Inventory |
|
1,353.9 |
|
|
1,419.9 |
|
Other current assets |
|
88.9 |
|
|
97.0 |
|
Total current assets |
|
2,160.2 |
|
|
2,201.3 |
|
Property, plant and
equipment |
|
7,034.5 |
|
|
6,969.2 |
|
Accumulated depreciation |
|
(5,155.3 |
) |
|
(5,057.6 |
) |
Property, plant and equipment,
net |
|
1,879.2 |
|
|
1,911.6 |
|
Operating lease assets |
|
245.7 |
|
|
— |
|
Other non-current assets |
|
401.9 |
|
|
402.8 |
|
TOTAL
ASSETS |
|
$ |
4,687.0 |
|
|
$ |
4,515.7 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
|
$ |
732.3 |
|
|
$ |
801.0 |
|
Accrued liabilities |
|
242.9 |
|
|
288.9 |
|
Current portion of operating lease liabilities |
|
53.9 |
|
|
— |
|
Current portion of pension and other postretirement benefit
obligations |
|
37.8 |
|
|
38.7 |
|
Total current liabilities |
|
1,066.9 |
|
|
1,128.6 |
|
Non-current liabilities: |
|
|
|
|
Long-term debt |
|
1,946.2 |
|
|
1,993.7 |
|
Long-term operating lease liabilities |
|
212.9 |
|
|
— |
|
Pension and other postretirement benefit obligations |
|
808.0 |
|
|
829.9 |
|
Other non-current liabilities |
|
177.4 |
|
|
134.0 |
|
TOTAL
LIABILITIES |
|
4,211.4 |
|
|
4,086.2 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Common stock, authorized 450,000,000 shares of $0.01 par value
each; issued 317,705,839 and |
|
|
|
|
|
|
316,595,613 shares in 2019 and 2018; outstanding 316,342,354 and
315,535,765 shares in 2019 |
|
|
|
|
|
|
and 2018 |
|
3.2 |
|
|
3.2 |
|
Additional paid-in capital |
|
2,901.0 |
|
|
2,894.9 |
|
Treasury stock, common shares at cost, 1,363,485 and 1,059,848
shares in 2019 and |
|
|
|
|
|
|
2018 |
|
(7.2 |
) |
|
(6.4 |
) |
Accumulated deficit |
|
(2,629.5 |
) |
|
(2,691.8 |
) |
Accumulated other comprehensive loss |
|
(131.9 |
) |
|
(100.0 |
) |
Total stockholders’ equity |
|
135.6 |
|
|
99.9 |
|
Noncontrolling interests |
|
340.0 |
|
|
329.6 |
|
TOTAL
EQUITY |
|
475.6 |
|
|
429.5 |
|
TOTAL LIABILITIES AND
EQUITY |
|
$ |
4,687.0 |
|
|
$ |
4,515.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
(Unaudited) |
(Dollars in millions) |
|
|
|
|
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
Cash flows from
operating activities: |
|
|
|
|
Net income |
|
$ |
88.0 |
|
|
$ |
117.1 |
|
Depreciation |
|
86.4 |
|
|
102.1 |
|
Depreciation—SunCoke Middletown |
|
13.6 |
|
|
7.7 |
|
Amortization |
|
17.5 |
|
|
17.3 |
|
Ashland Works closure |
|
64.1 |
|
|
— |
|
Deferred income taxes |
|
0.6 |
|
|
(7.2 |
) |
Pension and OPEB expense (income) |
|
2.5 |
|
|
(16.2 |
) |
Contributions to pension trust |
|
(19.5 |
) |
|
(15.2 |
) |
Other postretirement benefit payments |
|
(15.6 |
) |
|
(19.3 |
) |
Mark-to-market (gains) losses on derivative contracts |
|
(61.1 |
) |
|
(7.4 |
) |
Changes in working capital |
|
(33.4 |
) |
|
28.8 |
|
Other operating items, net |
|
(6.9 |
) |
|
(20.3 |
) |
Net cash flows from operating activities |
|
136.2 |
|
|
187.4 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital investments |
|
(82.4 |
) |
|
(64.0 |
) |
Other investing items, net |
|
10.3 |
|
|
0.3 |
|
Net cash flows from investing activities |
|
(72.1 |
) |
|
(63.7 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net borrowings (payments) under credit facility |
|
(50.0 |
) |
|
(80.0 |
) |
Redemption of long-term debt |
|
(4.2 |
) |
|
— |
|
SunCoke Middletown distributions to noncontrolling interest
owners |
|
(15.3 |
) |
|
(34.8 |
) |
Other financing items, net |
|
(1.0 |
) |
|
(0.9 |
) |
Net cash flows from financing activities |
|
(70.5 |
) |
|
(115.7 |
) |
|
|
|
|
|
Net increase (decrease) in
cash and cash equivalents |
|
(6.4 |
) |
|
8.0 |
|
Cash and cash equivalents,
beginning of period |
|
48.6 |
|
|
38.0 |
|
Cash and cash equivalents, end
of period |
|
$ |
42.2 |
|
|
$ |
46.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
NON-GAAP FINANCIAL MEASURES |
(Unaudited) |
(Dollars
in millions) |
In certain of its disclosures in this news release,
the company has reported adjusted EBITDA, adjusted EBITDA margin
and adjusted net income attributable to AK Steel Holding that
exclude the effects of noncontrolling interests and costs
associated with the closure of Ashland Works. The company
believes that reporting adjusted net income with these items
excluded more clearly reflects its current operating results and
provides investors with a better understanding of its overall
financial performance. Adjustments to net income do not
result in an income tax effect as any gross income tax effects are
offset by a corresponding change in the deferred income tax
valuation allowance.
EBITDA is an acronym for earnings before interest, taxes,
depreciation and amortization. It is a metric that is
sometimes used to compare the results of different companies by
removing the effects of different factors that might otherwise make
comparisons inaccurate or inappropriate. The adjusted
results, although not financial measures under generally accepted
accounting principles (“GAAP”) and not identically applied by other
companies, facilitate the ability to analyze the company’s
financial results in relation to those of its competitors and to
the company’s prior financial performance by excluding items that
otherwise would distort the comparison. Adjusted EBITDA,
adjusted EBITDA margin and adjusted net income are not, however,
intended as alternative measures of operating results or cash flow
from operations as determined in accordance with GAAP and are not
necessarily comparable to similarly titled measures used by other
companies.
Neither current nor potential investors in the company’s
securities should rely on adjusted EBITDA, adjusted EBITDA margin
or adjusted net income as a substitute for any GAAP financial
measure and the company encourages current and potential investors
to review the following reconciliations of adjusted EBITDA and
adjusted net income.
Reconciliation of Adjusted EBITDA |
|
(dollars in millions, except per ton) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net income attributable to AK Steel Holding |
|
$ |
66.8 |
|
|
$ |
56.6 |
|
|
$ |
62.3 |
|
|
$ |
85.3 |
|
Net income attributable to
noncontrolling interests |
|
13.1 |
|
|
15.7 |
|
|
25.7 |
|
|
31.8 |
|
Income tax expense
(benefit) |
|
1.0 |
|
|
(0.5 |
) |
|
2.4 |
|
|
(5.4 |
) |
Interest expense, net |
|
36.9 |
|
|
37.7 |
|
|
74.6 |
|
|
75.1 |
|
Depreciation and
amortization |
|
53.0 |
|
|
58.6 |
|
|
109.3 |
|
|
119.9 |
|
EBITDA |
|
170.8 |
|
|
168.1 |
|
|
274.3 |
|
|
306.7 |
|
Less: EBITDA of noncontrolling
interests (a) |
|
19.3 |
|
|
19.7 |
|
|
39.3 |
|
|
39.6 |
|
Ashland Works closure |
|
— |
|
|
— |
|
|
77.4 |
|
|
— |
|
Adjusted EBITDA |
|
$ |
151.5 |
|
|
$ |
148.4 |
|
|
$ |
312.4 |
|
|
$ |
267.1 |
|
Adjusted EBITDA margin |
|
9.0 |
% |
|
8.5 |
% |
|
9.2 |
% |
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
The reconciliation of net income attributable to noncontrolling
interests to EBITDA of noncontrolling interests is as
follows: |
|
(dollars in millions) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
Net income attributable to noncontrolling interests |
|
$ |
13.1 |
|
|
$ |
15.7 |
|
|
$ |
25.7 |
|
|
$ |
31.8 |
|
|
Depreciation |
|
6.2 |
|
|
4 |
|
|
13.6 |
|
|
7.8 |
|
|
EBITDA of noncontrolling interests |
|
$ |
19.3 |
|
|
$ |
19.7 |
|
|
$ |
39.3 |
|
|
$ |
39.6 |
|
|
Reconciliation of Adjusted Net Income |
|
|
|
|
|
|
|
|
|
(dollars in millions, except per share) |
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Reconciliation to Net
Income Attributable to AK Steel Holding |
|
|
|
|
|
|
|
|
Net income attributable to AK Steel Holding |
|
$ |
66.8 |
|
|
$ |
56.6 |
|
|
$ |
62.3 |
|
|
$ |
85.3 |
|
Ashland Works closure |
|
— |
|
|
— |
|
|
77.4 |
|
|
— |
|
Adjusted net income
attributable to AK Steel Holding |
|
$ |
66.8 |
|
|
$ |
56.6 |
|
|
$ |
139.7 |
|
|
$ |
85.3 |
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Diluted Earnings per Share |
|
|
|
|
|
|
|
|
Diluted earnings per
share |
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.20 |
|
|
$ |
0.27 |
|
Ashland Works closure |
|
— |
|
|
— |
|
|
0.24 |
|
|
— |
|
Adjusted diluted earnings per
share |
|
$ |
0.21 |
|
|
$ |
0.18 |
|
|
$ |
0.44 |
|
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted EBITDA Guidance for
2019 |
|
(dollars in millions) |
|
Year Ending December 31, 2019 |
|
|
Low |
|
High |
Net income attributable to AK Holding |
|
$ |
41 |
|
|
$ |
61 |
|
Net income attributable to
noncontrolling interests |
|
55 |
|
|
55 |
|
Income tax expense |
|
7 |
|
|
7 |
|
Interest expense, net |
|
155 |
|
|
155 |
|
Depreciation and
amortization |
|
210 |
|
|
210 |
|
EBITDA |
|
468 |
|
|
488 |
|
Less: EBITDA of noncontrolling
interests (a) |
|
75 |
|
|
75 |
|
Ashland Works closure |
|
77 |
|
|
77 |
|
Adjusted EBITDA |
|
$ |
470 |
|
|
$ |
490 |
|
|
|
|
|
|
|
|
|
|
|
(a) |
The reconciliation of net income attributable to noncontrolling
interests to EBITDA of noncontrolling interests is as follows: |
|
|
|
(dollars in millions) |
|
Year Ending December 31, 2019 |
|
|
|
Low |
|
High |
|
Net income attributable to noncontrolling interests |
|
$ |
55 |
|
|
$ |
55 |
|
|
Depreciation |
|
20 |
|
|
20 |
|
|
EBITDA of noncontrolling interests |
|
$ |
75 |
|
|
$ |
75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Adjusted Net Income Guidance for
2019 |
|
(dollars in millions, except per share) |
|
Year Ending December 31, 2019 |
|
|
Low |
|
High |
Reconciliation to Net
Income Attributable to AK Steel Holding |
|
|
|
|
Net income attributable to AK Steel Holding |
|
$ |
41 |
|
|
$ |
61 |
|
Ashland Works closure |
|
77 |
|
|
77 |
|
Adjusted net income
attributable to AK Steel Holding |
|
$ |
118 |
|
|
$ |
138 |
|
|
|
|
|
|
Reconciliation to
Diluted Earnings per Share |
|
|
|
|
Diluted earnings per
share |
|
$ |
0.13 |
|
|
$ |
0.20 |
|
Ashland Works closure |
|
0.24 |
|
|
0.24 |
|
Adjusted diluted earnings per
share |
|
$ |
0.37 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
FLAT-ROLLED STEEL SHIPMENTS |
(Unaudited) |
(Tons in thousands) |
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Tons Shipped by
Product |
|
|
|
|
|
|
|
|
Stainless/electrical |
|
198.4 |
|
|
221.5 |
|
|
405.0 |
|
|
422.2 |
|
Coated |
|
738.4 |
|
|
721.3 |
|
|
1,452.1 |
|
|
1,455.8 |
|
Cold-rolled |
|
228.6 |
|
|
269.6 |
|
|
485.4 |
|
|
552.1 |
|
Hot-rolled |
|
189.8 |
|
|
188.1 |
|
|
358.9 |
|
|
362.4 |
|
Other |
|
36.2 |
|
|
39.3 |
|
|
78.4 |
|
|
78.2 |
|
Total
shipments |
|
1,391.4 |
|
|
1,439.8 |
|
|
2,779.8 |
|
|
2,870.7 |
|
|
|
|
|
|
|
|
|
|
Shipments by Product
(%) |
|
|
|
|
|
|
|
|
Stainless/electrical |
|
14 |
% |
|
15 |
% |
|
15 |
% |
|
15 |
% |
Coated |
|
53 |
% |
|
50 |
% |
|
52 |
% |
|
50 |
% |
Cold-rolled |
|
16 |
% |
|
19 |
% |
|
17 |
% |
|
19 |
% |
Hot-rolled |
|
14 |
% |
|
13 |
% |
|
13 |
% |
|
13 |
% |
Other |
|
3 |
% |
|
3 |
% |
|
3 |
% |
|
3 |
% |
Total
shipments |
|
100 |
% |
|
100 |
% |
|
100 |
% |
|
100 |
% |
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