- Net income increased by 290 percent to
$53 million, including $89 million in debt extinguishment
charges
- Adjusted EBITDA1 of $154 million, a 149
percent increase from the prior-year quarter
Cleveland-Cliffs Inc. (NYSE: CLF) today reported
third-quarter results for the period ended September 30, 2017. The
Company reported consolidated revenues of $698 million, an increase
of 26 percent compared to the prior year's third-quarter revenues
of $553 million. Cost of goods sold increased by 15 percent to $538
million compared to $468 million reported in the third quarter of
2016.
The Company recorded net income of $53 million in the third
quarter, or $0.18 per diluted share. This included an $89 million,
or $0.29 per diluted share, loss on extinguishment of debt, and a
$32 million, or $0.11 per diluted share, gain from discontinued
operations. This compares to a net loss of $28 million, or $0.12
per diluted share, recorded in the third quarter of 2016. The
prior-year quarter's net loss included an $18 million, or $0.09 per
diluted share, loss on extinguishment of debt, and a $3 million, or
$0.01 per diluted share, loss from discontinued operations.
For the third quarter of 2017, adjusted EBITDA1 was $154
million, a 149 percent increase compared to $62 million reported in
the third quarter of 2016.
Adjusted EBITDA1 by Segment (in
millions)
U.S.Iron Ore
Asia PacificIron Ore
Corporate/Other
Total
Q3 2017 Adjusted EBITDA1 $ 174.2 $ 4.9 $ (24.7 )
$ 154.4
Lourenco Goncalves, Cliffs' Chairman, President and Chief
Executive Officer, said, "We are very pleased with our
accomplishments so far this year, in which we became a much more
profitable company, substantially improved our debt profile and now
pay a lot less in interest expense. With the third quarter numbers
in the books, we have already outperformed in three quarters of
2017 the results of the entire 2016." Mr. Goncalves added, "On top
of that, during the third quarter, we acquired the remaining 15% of
the Tilden Mine, and now own 100% of all active and idled iron ore
mining assets in the State of Michigan. The acquisition will allow
us to become a 20 million long ton pellet supplier in 2018."
U.S. Iron Ore
Three Months Ended Nine Months Ended
September 30, September 30, 2017 2016
2017 2016
Volumes - In
Thousands of Long Tons
Sales volume
5,863 5,287
13,291 11,343 Production
volume
4,265 3,857
13,233 11,059
Sales Margin - In
Millions
Revenues from product sales and services
$ 596.7 $
428.3
$ 1,354.2 $ 975.5 Cost of goods sold and
operating expenses
439.5 361.8
1,004.4
825.8 Sales margin
$ 157.2 $ 66.5
$ 349.8 $ 149.7
Sales Margin -
Per Long Ton
Revenues from product sales and services*
$ 90.50 $
73.50
$ 89.91 $ 76.82 Cash cost of goods sold and
operating expense rate2
60.87 57.37
59.86 57.89
Depreciation, depletion and amortization
2.81 3.56
3.73 5.74 Cost of goods sold and operating
expenses*
63.68 60.93
63.59
63.63 Sales margin
$ 26.82 $ 12.57
$ 26.32 $ 13.19
*Excludes revenues and expenses related to
domestic freight, which are offsetting and have no impact on sales
margin. Revenues and expenses also exclude venture partner cost
reimbursements.
U.S. Iron Ore pellet sales volume in the third quarter of 2017
was 5.9 million long tons, an 11 percent increase when compared to
the third quarter of 2016 as a result of increased customer demand
and export sales.
Cash cost of goods sold and operating expense rate2 in U.S. Iron
Ore was $60.87 per long ton, a 6 percent increase from $57.37 per
long ton in the prior year's third quarter. The increase was
primarily driven by higher costs associated with maintenance and
repairs, employee benefits, and energy rates. This was partially
offset by reduced idle costs.
Asia Pacific Iron Ore
Three Months Ended Nine Months Ended
September 30, September 30, 2017 2016
2017 2016
Volumes - In
Thousands of Metric Tons
Sales volume
2,235 2,799
7,763 8,705 Production
volume
2,477 2,968
7,910 8,575
Sales Margin - In
Millions
Revenues from product sales and services
$ 101.7 $
125.0
$ 375.1 $ 379.5 Cost of goods sold and
operating expenses
98.7 106.1
323.9
321.4 Sales margin
$ 3.0 $ 18.9
$ 51.2 $ 58.1
Sales Margin -
Per Metric Ton
Revenues from product sales and services*
$ 43.36 $
42.87
$ 46.03 $ 41.99 Cash cost of goods sold and
operating expense rate2
40.54 33.87
37.98 33.11
Depreciation, depletion and amortization
1.48 2.25
1.46 2.21 Cost of goods sold and operating
expenses*
42.02 36.12
39.44
35.32 Sales margin
$ 1.34 $ 6.75
$ 6.59 $ 6.67 *Excludes revenues and expenses
related to freight, which are offsetting and have no impact on
sales margin.
Third-quarter 2017 Asia Pacific Iron Ore sales volume decreased
20 percent to 2.2 million metric tons, from 2.8 million metric tons
in the third quarter of 2016. The decrease was driven primarily by
lower production volumes, a result of operational decisions
reflecting current market conditions and quality ore
availability.
Cash cost of goods sold and operating expense rate2 in Asia
Pacific Iron Ore was $40.54 per metric ton in the third quarter of
2017, compared to $33.87 in the prior-year quarter. This was
primarily attributable to increased mining costs, driven by a
change in the overall operating plan resulting in a higher strip
ratio. It was also driven by increased logistics and site
administrative expenses, as well as an unfavorable exchange
rate.
Other Income Statement Items
Cliffs' third-quarter 2017 SG&A expenses were $25 million, a
21 percent decrease compared to third-quarter 2016 expenses of $31
million. The decrease was driven primarily by a union signing bonus
in 2016 that was not repeated in 2017, as well as decreased
external services spend.
Cliffs' net interest expense during the third quarter was $29
million, a 41 percent decrease when compared to the third-quarter
2016 expense of $49 million, as a result of proactive debt
reduction and refinancing efforts lowering the weighted average
cost of debt as compared to the prior period.
Miscellaneous-net expense of $6 million included, among other
items, $5 million in charges related to the indefinite idle at
Empire mine.
Debt and Cash Flow
Total debt at the end of the third quarter of 2017 was $1.7
billion, approximately $500 million lower than the $2.2 billion
total debt at the end of the prior-year quarter. Cliffs had net
debt3 of $1.4 billion at the end of the third quarter of 2017,
compared to $2.0 billion of net debt3 at the end of the third
quarter of 2016. The Company had no borrowings under its
asset-based lending facility at the end of the third quarter of
2017 or 2016.
Capital expenditures during the quarter were $30 million,
compared to $26 million in the prior-year quarter.
Segment Outlook
2017 Outlook Summary Per Sales Ton Information
U.S. Iron Ore (A)
Asia Pacific IronOre (B)
Cost of goods sold and operating expense rate $70 - $75 $40
- $45 Less: Freight and venture partners' cost reimbursements
expense rate (C) $11 $3 Depreciation, depletion & amortization
rate $4 $1
Cash cost of goods sold and operating
expense rate2
$55 - $60 $36 - $41 Sales volume (million tons) 18.5 10.5
Production volume (million tons) 18.5 11.0 (A) U.S. Iron Ore tons
are reported in long tons of pellets. (B) Asia Pacific Iron Ore
tons are reported in metric tons of lump and fines. (C) The freight
and venture partners' cost reimbursements have offsetting amounts
in revenue and have no impact on sales margin.
U.S. Iron Ore Outlook (Long Tons)
Cliffs full-year sales and production volume expectations were
each reduced by 500,000 tons to 18.5 million long tons. The
reduction in sales volumes is attributable to a significant
reduction in pellet nomination by a large customer, partially
offset by increased export sales.
For 2018, Cliffs expects sales and production volumes of 20
million long tons, as a result of the increased capacity from the
acquisition of the remaining minority interest in the Tilden
mine.
Cliffs' full-year 2017 U.S. Iron Ore cash cost of goods sold and
operating expense2 expectation is unchanged at $55 - $60 per long
ton.
Asia Pacific Iron Ore Outlook (Metric Tons, F.O.B. the
port)
Cliffs' full-year 2017 Asia Pacific Iron Ore sales and
production volume expectations were each reduced by 500,000 metric
tons, to 10.5 million metric tons of sales and 11 million metric
tons of production. The reductions were driven by operational
decisions reflecting current market conditions and quality ore
availability.
For 2018, Cliffs expects Asia Pacific Iron Ore sales and
production volumes of 11 million tons.
Due to unfavorable exchange rate movements and lower production
volumes, Cliffs' full-year 2017 cash cost of goods sold and
operating expense2 expectation has been increased to $36 - $41 per
metric ton. This assumes a full-year average exchange rate of $0.77
U.S. Dollar to Australian Dollar.
SG&A Expenses and Other Expectations
Cliffs is maintaining its full-year 2017 SG&A expense
expectation of $110 million. Cliffs also notes that of the $110
million expectation, approximately $30 million is considered
non-cash.
As a result of the July refinancing transaction, the Company's
full-year 2017 interest expense was reduced by $5 million to
approximately $130 million. Of this $130 million, approximately $20
million is expected to be non-cash. In 2018, Cliffs' expects net
interest expense to be less than $100 million.
Capital Budget Update
Cliffs' full-year 2017 capital expenditures budget has been
maintained at $115 million.
Conference Call Information
Cleveland-Cliffs Inc. will host a conference call this morning,
October 20, 2017, at 10 a.m. ET. The call will be broadcast live
and archived on Cliffs' website: www.clevelandcliffs.com
About Cleveland-Cliffs Inc.
Founded in 1847, Cleveland-Cliffs Inc. is the largest and oldest
independent iron ore mining company in the United States. We are a
major supplier of iron ore pellets to the North American steel
industry from our mines and pellet plants located in Michigan and
Minnesota. Additionally, we operate an iron ore mining complex in
Western Australia. By 2020, Cliffs expects to be the sole producer
of hot briquetted iron (HBI) in the Great Lakes region with the
development of its first production plant in Toledo, Ohio. Driven
by the core values of safety, social, environmental and capital
stewardship, our employees endeavor to provide all stakeholders
with operating and financial transparency. For more information,
visit http://www.clevelandcliffs.com
Forward-Looking Statements
This release contains statements that constitute
"forward-looking statements" within the meaning of the federal
securities laws. As a general matter, forward-looking statements
relate to anticipated trends and expectations rather than
historical matters. Forward-looking statements are subject to
uncertainties and factors relating to Cliffs’ operations and
business environment that are difficult to predict and may be
beyond our control. Such uncertainties and factors may cause actual
results to differ materially from those expressed or implied by the
forward-looking statements. These statements speak only as of the
date of this release, and we undertake no ongoing obligation, other
than that imposed by law, to update these statements. Uncertainties
and risk factors that could affect Cliffs’ future performance and
cause results to differ from the forward-looking statements in this
report include, but are not limited to: uncertainty and weaknesses
in global economic conditions, including downward pressure on
prices caused by oversupply or imported products, the impact of any
reduced barriers to trade, the outcomes of recently filed and
forthcoming trade cases, reduced market demand and any change to
the economic growth rate in China; continued volatility of iron ore
and steel prices and other trends, including the supply approach of
the major iron ore producers, affecting our financial condition,
results of operations or future prospects, specifically the impact
of price-adjustment factors on our sales contracts; our level of
indebtedness could limit cash flow available to fund working
capital, capital expenditures, acquisitions and other general
corporate purposes or ongoing needs of our business; availability
of capital and our ability to maintain adequate liquidity; our
ability to successfully conclude the CCAA process in a manner that
minimizes cash outflows and associated liabilities; the impact of
our customers reducing their steel production due to increased
market share of steel produced using other methods or
lighter-weight steel alternatives; uncertainty relating to
restructurings in the steel industry and/or affecting the steel
industry; the outcome of any contractual disputes with our
customers, joint venture partners or significant energy, material
or service providers or any other litigation or arbitration; the
ability of our customers and joint venture partners to meet their
obligations to us on a timely basis or at all; problems or
uncertainties with productivity, tons mined, transportation,
mine-closure obligations, environmental liabilities,
employee-benefit costs and other risks of the mining industry; our
ability to reach agreement with our customers regarding any
modifications to sales contract provisions, renewals or new
arrangements; our actual levels of capital spending; our ability to
successfully diversify our product mix and add new customers beyond
our traditional blast furnace clientele; our actual economic iron
ore reserves or reductions in current mineral estimates, including
whether any mineralized material qualifies as a reserve; our
ability to cost-effectively achieve planned production rates or
levels, including at our HBI production plant; our ability to
successfully identify and consummate any strategic investments or
development projects, including our HBI production plant; our
ability to obtain the investments necessary for our HBI production
plant; changes in sales volume or mix; events or circumstances that
could impair or adversely impact the viability of a mine and the
carrying value of associated assets, as well as any resulting
impairment charges; our ability to maintain appropriate relations
with unions and employees; impacts of existing and increasing
governmental regulation and related costs and liabilities,
including failure to receive or maintain required operating and
environmental permits, approvals, modifications or other
authorization of, or from, any governmental or regulatory entity
and costs related to implementing improvements to ensure compliance
with regulatory changes; uncertainties associated with natural
disasters, weather conditions, unanticipated geological conditions,
supply or price of energy, equipment failures and other unexpected
events; adverse changes in currency values, currency exchange
rates, interest rates and tax laws; risks related to international
operations; and the potential existence of significant deficiencies
or material weakness in our internal control over financial
reporting.
For additional factors affecting the business of Cliffs, refer
to Part I – Item 1A. Risk Factors of our Annual Report on Form
10-K for the year ended December 31, 2016. You are urged to
carefully consider these risk factors.
FINANCIAL TABLES FOLLOW
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES STATEMENTS
OF UNAUDITED CONDENSED CONSOLIDATED OPERATIONS (In
Millions, Except Per Share Amounts) Three Months Ended
Nine Months Ended September 30, September
30, 2017 2016
2017 2016 REVENUES
FROM PRODUCT SALES AND SERVICES Product
$ 627.5 $
508.6
$ 1,552.3 $ 1,237.0 Freight and venture
partners' cost reimbursements
70.9 44.7
177.0 118.0
698.4 553.3
1,729.3
1,355.0 COST OF GOODS SOLD AND OPERATING EXPENSES
(538.2
) (467.9 )
(1,328.3 ) (1,147.2 ) SALES MARGIN
160.2 85.4
401.0 207.8 OTHER OPERATING INCOME
(EXPENSE) Selling, general and administrative expenses
(24.6
) (31.1 )
(77.8 ) (81.8 ) Miscellaneous - net
(5.9 ) (19.6 )
3.0 (16.9 )
(30.5
) (50.7 )
(74.8 ) (98.7 ) OPERATING INCOME
129.7 34.7
326.2 109.1 OTHER INCOME (EXPENSE)
Interest expense, net
(28.9 ) (48.7 )
(103.1
) (156.2 ) Gain (loss) on extinguishment/restructuring of
debt
(88.6 ) (18.3 )
(165.4 ) 164.1
Other non-operating income
0.8 0.1
2.3
0.4
(116.7 ) (66.9 )
(266.2
) 8.3 INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES
13.0 (32.2 )
60.0 117.4 INCOME TAX
BENEFIT
7.6 7.1
6.8 1.7
INCOME (LOSS) FROM CONTINUING OPERATIONS
20.6 (25.1 )
66.8 119.1 INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET
OF TAX
32.3 (2.7 )
(13.6 ) (0.6 ) NET
INCOME (LOSS)
52.9 (27.8 )
53.2 118.5 LOSS (INCOME)
ATTRIBUTABLE TO NONCONTROLLING INTEREST
0.5 2.0
3.9 (23.5 ) NET INCOME (LOSS) ATTRIBUTABLE TO
CLIFFS SHAREHOLDERS
$ 53.4 $ (25.8 )
$
57.1 $ 95.0 EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - BASIC Continuing operations
$ 0.07 $ (0.11 )
$ 0.25 $ 0.51
Discontinued operations
0.11 (0.01 )
(0.05
) —
$ 0.18 $ (0.12 )
$
0.20 $ 0.51
EARNINGS (LOSS) PER COMMON SHARE
ATTRIBUTABLE TO CLIFFS SHAREHOLDERS - DILUTED
Continuing operations
$ 0.07 $ (0.11 )
$
0.24 $ 0.51 Discontinued operations
0.11 (0.01
)
(0.05 ) —
$ 0.18 $
(0.12 )
$ 0.19 $ 0.51 AVERAGE NUMBER OF
SHARES (IN THOUSANDS) Basic
296,079 206,279
285,771
186,454 Diluted
301,075 206,279
290,512 188,471
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES
STATEMENTS OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
POSITION (In Millions) September 30,
December 31,
2017 2016
ASSETS
CURRENT ASSETS Cash and cash equivalents
$ 260.8 $
323.4 Accounts receivable, net
63.9 128.7 Inventories
207.7 178.4 Supplies and other inventories
92.5 91.4
Derivative assets
89.5 33.1 Loans to and accounts receivable
from the Canadian Entities
51.9 48.6 Other current assets
24.8 21.0 TOTAL CURRENT ASSETS
791.1
824.6 PROPERTY, PLANT AND EQUIPMENT, NET
993.8 984.4 OTHER
NON-CURRENT ASSETS
138.4 114.9 TOTAL ASSETS
$ 1,923.3 $ 1,923.9
LIABILITIES
CURRENT LIABILITIES Accounts payable
$ 102.0 $ 107.6
Accrued expenses
109.4 123.3 Accrued interest
21.7
40.2 Contingent claims
50.0 — Derivative liabilities
9.3 0.5 Other current liabilities
125.1 119.5
TOTAL CURRENT LIABILITIES
417.5 391.1 PENSION AND
POSTEMPLOYMENT BENEFIT LIABILITIES
254.3 280.5 ENVIRONMENTAL
AND MINE CLOSURE OBLIGATIONS
205.4 193.9 LONG-TERM DEBT
1,689.4 2,175.1 OTHER LIABILITIES
189.8 213.8
TOTAL LIABILITIES
2,756.4 3,254.4
EQUITY
CLIFFS SHAREHOLDERS' DEFICIT
(833.3 ) (1,464.3 )
NONCONTROLLING INTEREST
0.2 133.8 TOTAL
DEFICIT
(833.1 ) (1,330.5 ) TOTAL LIABILITIES AND
DEFICIT
$ 1,923.3 $ 1,923.9
CLEVELAND-CLIFFS INC. AND SUBSIDIARIES STATEMENTS
OF UNAUDITED CONDENSED CONSOLIDATED CASH FLOWS (In
Millions) Nine Months Ended September 30,
2017 2016 OPERATING ACTIVITIES Net income
$ 53.2 $ 118.5 Adjustments to reconcile net income to
net cash provided (used) by operating activities: Depreciation,
depletion and amortization
66.3 88.9 (Gain) loss on
extinguishment/restructuring of debt
165.4 (164.1 ) (Gain)
loss on deconsolidation
16.3 (3.2 ) Gain on derivatives
(47.5 ) (22.6 ) Other
19.0 31.6 Changes in
operating assets and liabilities: Receivables and other assets
68.9 137.5 Inventories
(26.1 ) 21.6 Payables,
accrued expenses and other liabilities
(108.8 )
(136.1 ) Net cash provided by operating activities
206.7
72.1 INVESTING ACTIVITIES Purchase of property, plant and equipment
(78.9 ) (45.8 ) Other investing activities
(5.5 ) 6.3 Net cash used by investing
activities
(84.4 ) (39.5 ) FINANCING ACTIVITIES
Proceeds from issuance of senior notes
1,057.8 — Debt
issuance costs
(12.0 ) (5.2 ) Net proceeds from
issuance of common shares
661.3 287.6 Repurchase of debt
(1,720.7 ) (301.0 ) Repayment of equipment loans
— (95.6 ) Borrowings under credit facilities
— 105.0
Repayment under credit facilities
— (105.0 ) Acquisition of
noncontrolling interest
(105.0 ) — Distributions of
partnership equity
(53.0 ) (52.5 ) Other financing
activities
(17.0 ) (19.3 ) Net cash used by financing
activities
(188.6 ) (186.0 ) EFFECT OF EXCHANGE RATE
CHANGES ON CASH
3.7 0.4 DECREASE IN CASH AND
CASH EQUIVALENTS
(62.6 ) (153.0 ) CASH AND CASH
EQUIVALENTS AT BEGINNING OF PERIOD
323.4 285.2
CASH AND CASH EQUIVALENTS AT END OF PERIOD
$ 260.8
$ 132.2
1 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION - EBITDA AND
ADJUSTED EBITDA
In addition to the consolidated financial statements presented
in accordance with U.S. GAAP, the Company has presented adjusted
EBITDA on a segment basis, and both EBITDA and adjusted EBITDA on a
consolidated basis. EBITDA and Adjusted EBITDA are non-GAAP
financial measures that management uses in evaluating operating
performance. The presentation of these measures is not intended to
be considered in isolation from, as a substitute for, or as
superior to, the financial information prepared and presented in
accordance with U.S. GAAP. The presentation of these measures may
be different from non-GAAP financial measures used by other
companies. A reconciliation of these consolidated measures to their
most directly comparable GAAP measures is provided in the table
below.
(In Millions) (In Millions)
Three Months EndedSeptember
30,
Nine Months EndedSeptember
30,
2017 2016
2017 2016 Net Income (Loss)
$ 52.9 $ (27.8 )
$ 53.2 $ 118.5 Less:
Interest expense, net
(28.9 ) (48.7 )
(103.1
) (156.2 ) Income tax benefit
7.6 7.1
6.8 1.7
Depreciation, depletion and amortization
(21.5 )
(26.8 )
(66.3 ) (88.9 ) EBITDA
$ 95.7
$ 40.6
$ 215.8 $ 361.9
Less: Impact of discontinued operations
$ 32.3
$ (2.7 )
$ (13.6 ) $ (0.6 ) Gain (loss) on
extinguishment/restructuring of debt
(88.6 ) (18.3 )
(165.4 ) 164.1 Foreign exchange remeasurement
(2.4 ) (0.3 )
11.2 (1.2 ) Severance and
contractor termination costs
— —
—
(0.1 ) Adjusted EBITDA
$ 154.4 $ 61.9
$ 383.6 $ 199.7
2 CLEVELAND-CLIFFS INC. AND
SUBSIDIARIES
NON-GAAP RECONCILIATION EXPLANATIONS
The Company presents cash cost of goods sold and operating
expense rate per long/metric ton, which is a non-GAAP financial
measure that management uses in evaluating operating performance.
Cliffs believes the presentation of non-GAAP cash cost of goods
sold and operating expenses is useful to investors because it
excludes depreciation, depletion and amortization, which are
non-cash, and freight and venture partners' cost reimbursements,
which have no impact on sales margin, thus providing a more
accurate view of the cash outflows related to the sale of iron ore.
The presentation of this measure is not intended to be considered
in isolation from, as a substitute for, or as superior to, the
financial information prepared and presented in accordance with
U.S. GAAP. The presentation of this measure may be different from
non-GAAP financial measures used by other companies.
(In Millions) Three Months Ended September 30,
Three Months Ended September 30,
2017 2016
U.S.
Iron Asia Pacific U.S. Iron Asia
Pacific
Ore Iron Ore Total Ore Iron Ore
Total Cost of goods sold and operating expenses
$
(439.5 ) $ (98.7 ) $
(538.2 ) $ (361.8 ) $ (106.1 ) $ (467.9 ) Less:
Freight and reimbursements
(66.1 ) (4.8
) (70.9 ) (39.7 ) (5.0 ) (44.7 ) Depreciation,
depletion & amortization
(16.5 ) (3.3
) (19.8 ) (18.8 ) (6.3 ) (25.1 ) Cash cost of
goods sold and operating expenses
$ (356.9 )
$ (90.6 ) $ (447.5 ) $
(303.3 ) $ (94.8 ) $ (398.1 )
(In Millions) Nine
Months Ended September 30, Nine Months Ended September
30,
2017 2016
U.S. Iron Asia Pacific
U.S. Iron Asia Pacific
Ore Iron
Ore Total Ore Iron Ore Total Cost of goods sold and
operating expenses
$ (1,004.4 ) $
(323.9 ) $ (1,328.3 ) $ (825.8 )
$ (321.4 ) $ (1,147.2 ) Less: Freight and reimbursements
(159.2 ) (17.8 ) (177.0 )
(104.0 ) (14.0 ) (118.0 ) Depreciation, depletion &
amortization
(49.6 ) (11.3 )
(60.9 ) (65.1 ) (19.2 ) (84.3 ) Cash cost of goods
sold and operating expenses
$ (795.6 )
$ (294.8 ) $ (1,090.4 ) $
(656.7 ) $ (288.2 ) $ (944.9 )
3 NET DEBT RECONCILIATION
Net debt is a non-GAAP financial measure that management uses in
evaluating financial position. The presentation of this measure is
not intended to be considered in isolation from, as a substitute
for, or as superior to, the financial information prepared and
presented in accordance with U.S. GAAP. The presentation of this
measure may be different from non-GAAP financial measures used by
other companies. Net debt is defined as long-term debt plus the
current portion of short term debt, less cash and cash equivalents
and undiscounted interest. A reconciliation of this measure to its
most directly comparable GAAP measure is provided in the table
below.
(In Millions) September 30,
September 30, 2017 2016 Long-term debt
$ 1,689.4 $ 2,195.9 Short-term debt and current
portion of long-term debt
— 17.5 Total Debt
$
1,689.4 $ 2,213.4 Less: Cash and cash equivalents
$ 260.8 $ 132.2 Undiscounted interest
—
70.0 Net Debt
$ 1,428.6 $ 2,011.2
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171020005138/en/
Cleveland-Cliffs Inc.MEDIA CONTACT:Patricia
Persico, Director, Corporate Communications,
216-694-5316orINVESTOR CONTACT:Paul Finan, Director,
Investor Relations, 216-694-6544
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