FORT WAYNE, Ind., Jan. 24, 2017 /PRNewswire/ --
Annual 2016 Results
- Record company-wide safety performance
- Record steel shipments of 9.2 million tons
- Record steel production of 9.5 million tons
- Record fabrication shipments of 562,725 tons
- Operating income of $728 million
and record adjusted operating income of $861
million
- Near-record EBITDA of $1.0
billion and adjusted EBITDA of $1.2
billion
- Near-record liquidity of over $2.0
billion
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced fourth
quarter and annual 2016 financial results. The company
reported fourth quarter net sales of $1.9
billion and net income of $20
million, or $0.08 per diluted
share, which includes non-cash goodwill and asset impairment
charges of $0.31 per diluted share
and debt refinancing and repayment charges of $0.04 per diluted share. Excluding these items,
the company's adjusted fourth quarter 2016 net income was
$106 million, or $0.43 per diluted share.
As indicated in the company's December
16, 2016 guidance press release, based on recent events
related to the company's 82%-owned and idled Mining Resources joint
venture, the company assessed the carrying value of its
Minnesota iron mining operations
during the fourth quarter 2016. Upon completion of the
assessment, it was determined that the estimated fair value did not
support the carrying value in place. Therefore, the company
recorded a pretax, non-cash asset impairment charge of $127 million during the fourth quarter 2016, and
based on the company's joint venture ownership percentages, reduced
consolidated pretax income by $114
million. The planned sale of certain metals recycling
assets also resulted in a pretax, non-cash goodwill impairment
charge of $5.5 million during the
fourth quarter 2016.
The fourth quarter 2016 also included additional compensation
costs of approximately $7.5 million,
or $0.02 per diluted share,
associated with a one-time, special cash performance bonus paid to
all non-executive, eligible employees in recognition of their
tremendous performance during the year.
Comparatively, prior year fourth quarter net sales were
$1.6 billion, with adjusted net
income of $22 million, or
$0.09 per diluted share, which
excluded the impact of non-cash goodwill and asset impairment
charges related to the company's metals recycling operations of
$1.13 per diluted share.
Sequential third quarter 2016 net sales were $2.1 billion, with adjusted net income of
$160 million, or $0.65 per diluted share, which excluded the
impact of a litigation settlement charge of approximately
$5 million, or $0.01 per diluted share.
"We continue to perform at the top of our industry, both
operationally and financially," said Mark
D. Millett, President and Chief Executive Officer. "We
achieved record steel and fabrication shipments, and excluding the
previously mentioned impairment charges, we earned record adjusted
operating income of $861 million and
near record adjusted EBITDA of $1.2
billion. The industry benefited this year from reduced
flat roll steel imports, coupled with steady demand. Our
steel operations profitability declined significantly in the fourth
quarter, as customers' hesitancy to place orders earlier in the
quarter resulted in both lower shipments and product pricing.
However, supported by steady demand and a more favorable supply
environment, rising world steel prices, and increasing raw material
costs, both flat roll steel selling values and customer order
activity increased meaningfully in November and December, and
remain strong with an expectation for continued strength into
2017."
"Operating income from our metals recycling platform
(excluding the impairment charge) remained steady in the
fourth quarter 2016, despite lower seasonal domestic steel mill
utilization, which resulted in weakened demand," continued Millett.
"The benefit from the team's continued focus on cost reduction and
better alignment of metals recycling assets helped offset lower
shipments and slightly lower metal spread. Earnings from our
fabrication operations also remained steady in the quarter, as the
benefit from metal spread expansion more than offset lower seasonal
shipments. Our fabrication platform continues to experience
steady demand from the non-residential construction sector.
Based on continued strong generation of cash flow from
operations of $853 million for 2016,
we maintained near-record liquidity of over $2.0 billion, while simultaneously investing in
our company and reducing debt during the year. We have a firm
foundation for continued growth."
Additional Fourth Quarter 2016 Comments
Fourth quarter 2016 operating income for the company's steel
operations decreased 30 percent to $218
million sequentially, based on a three percent decline in
shipments and metal spread compression. The company's average
steel product price decreased more than consumed raw material scrap
costs, resulting in steel metal spread compression. The
fourth quarter 2016 average product selling price for the company's
steel operations decreased $60 to
$680 per ton. The average
ferrous scrap cost per ton melted only decreased $31 to $220 per
ton.
Fourth quarter 2016 operating income attributable to the
company's flat roll products decreased 33 percent when compared to
the sequential third quarter, driven by lower shipments and a
meaningful decline in metal spread, based on lower selling values
that outpaced decreasing scrap costs. Operating income from long
products decreased 16 percent as a result of overall lower
shipments. Aside from the construction sector, long product
steel demand is generally challenged, and selling values remain
under pressure from excess domestic production capability.
The company's steel production utilization rate was 81 percent in
the fourth quarter 2016, compared to 85 percent in the sequential
third quarter and compared to the domestic industry utilization
rate of less than 70 percent.
Excluding non-cash goodwill impairment charges of $5.5 million, fourth quarter 2016 operating
income from the company's metals recycling operations remained
steady at $10 million, compared to
the sequential third quarter. Despite lower average quarterly
ferrous pricing, metal spread only decreased slightly.
The company's fabrication operations recorded fourth quarter
2016 operating income of $18 million,
which equaled sequential third quarter results, a strong
performance given the impact of seasonality. Higher average
steel input costs were more than offset by improved product selling
values, resulting in sequential metal spread expansion, which
offset seasonally lower shipments.
During the fourth quarter 2016, the company successfully
refinanced $400 million of its
highest cost senior notes, reducing its ongoing interest burden and
extending its debt maturity profile. On December 14, 2016, the company also utilized
available cash to repay $228 million
of its senior secured term debt facility. These actions
reduced fourth quarter 2016 pretax income by approximately
$17 million, due to the required call
premium and other associated finance expenses. In combination,
these transactions are expected to reduce the company's annual
interest expense by approximately $10
million in 2017, and further strengthen and add flexibility
to the company's long term capital structure and credit profile,
supporting continued growth.
Annual 2016 Comparison
Annual 2016 net income was $382
million, or $1.56 per diluted
share. Excluding charges related to litigation settlement,
non-cash goodwill and asset impairment, and debt capital structure
activities, the company reported adjusted net income of
$472 million, or $1.92 per diluted share. Comparatively,
annual 2015 net loss was $130
million, or $0.54 per diluted
share, which included non-cash asset impairment and other charges
related to the company's metals recycling and ferrous production
operations and refinancing costs. Excluding these charges,
annual 2015 adjusted net income was $178
million, or $0.74 per diluted
share.
Annual 2016 net sales were $7.8
billion, compared to $7.6
billion in 2015. The company's steel and fabrication
operating platforms each achieved annual shipping records in 2016
and despite lower average selling values, drove the increase in
2016 revenues. Annual 2016 adjusted operating income
increased $463 million, more than
double 2015 results, based on record annual operating income from
the company's steel operations related to both increased shipments
and metal spread expansion. The average 2016 selling price
for the company's steel operations decreased $17 to $658 per
ton. The average 2016 ferrous scrap cost per ton melted
decreased $35 to $220 per ton. The company's metals
recycling platform also experienced a significant improvement in
annual profitability based on metal spread expansion, achieving
2016 adjusted operating income of $40
million, compared to a loss of $4
million in 2015 (excluding non-cash goodwill and asset
impairment charges).
Outlook
"The company believes that current and anticipated macroeconomic
and market conditions are in place to benefit the domestic steel
industry in the coming year," said Millett. "Although
domestic automotive production may be coming off record levels, we
believe 2017 North American automotive steel consumption will be
steady, and that there will be additional growth in the
construction sector, especially for larger, public sector
infrastructure projects. We could also see some improved
activity within the energy sector in 2017.
"We continue to see progress at our Columbus Flat Roll
Division. The successful market and product diversification
that we achieved at Columbus
during 2015 was one of our key differentiators for improved annual
profitability in 2016, and will continue to benefit the coming
years as we have accessed numerous new customers and end markets.
The team also successfully added the capability to produce
value-added GalvalumeĀ® flat roll products during the third quarter
2016, and successfully installed the $100
million paint line in the fourth quarter of 2016, adding
250,000 tons of value-added painting capability. The team shipped
prime GalvalumeĀ® product in the second half of 2016 and just
shipped its first prime painted product a few weeks
ago.
"We continue to strengthen our financial position through strong
cash flow generation and the execution of our long-term strategy.
We are well-positioned for growth, and remain focused on delivering
shareholder value through organic and strategic growth
opportunities," concluded Millett.
Supplemental
Information (dollars in thousands)
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Fourth
Quarter
|
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Year to
Date
|
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|
|
|
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2016
|
|
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2015
|
|
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2016
|
|
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2015
|
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|
3Q 2016
|
External Net
Sales
|
|
|
|
|
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Steel
|
|
$
|
1,393,329
|
|
$
|
1,091,029
|
|
$
|
5,634,711
|
|
$
|
5,203,512
|
|
$
|
1,557,502
|
Fabrication
|
|
|
173,015
|
|
|
182,884
|
|
|
701,041
|
|
|
673,374
|
|
|
177,429
|
Metals
Recycling
|
|
|
282,783
|
|
|
270,625
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|
|
1,169,342
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|
|
1,433,003
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|
|
306,092
|
Other
|
|
|
61,469
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|
|
46,508
|
|
|
272,015
|
|
|
284,522
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|
|
60,287
|
Consolidated
|
|
$
|
1,910,596
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|
$
|
1,591,046
|
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$
|
7,777,109
|
|
$
|
7,594,411
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$
|
2,101,310
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|
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Operating
Income
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Steel
|
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$
|
217,778
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|
$
|
66,580
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|
$
|
941,126
|
|
$
|
411,523
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|
$
|
311,127
|
Fabrication
|
|
|
17,766
|
|
|
30,193
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|
|
91,167
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|
|
115,947
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|
|
17,814
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Metals
Recycling
|
|
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9,511
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(16,047)
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|
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40,305
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(3,764)
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|
|
9,747
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Metals Recycling
Impairment
|
|
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(5,500)
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|
|
(428,500)
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|
|
(5,500)
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|
|
(428,500)
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|
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-
|
Operations
|
|
|
239,555
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(347,774)
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|
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1,067,097
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|
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95,206
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|
|
338,688
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Non-cash Amortization
of Intangible Assets
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|
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(7,406)
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|
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(5,872)
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|
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(28,765)
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|
|
(24,180)
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|
|
(7,208)
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Profit Sharing
Expense
|
|
|
(19,563)
|
|
|
(4,427)
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|
|
(71,285)
|
|
|
(23,064)
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|
|
(22,255)
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Non-segment
Operations
|
|
|
(29,223)
|
|
|
(23,070)
|
|
|
(111,742)
|
|
|
(87,579)
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|
|
(25,370)
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Minnesota Impairment/Idle Charges
|
|
|
(127,339)
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|
|
-
|
|
|
(127,339)
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|
|
(33,167)
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|
|
-
|
Consolidated
Operating Income (Loss)
|
|
|
56,024
|
|
|
(381,143)
|
|
|
727,966
|
|
|
(72,784)
|
|
|
283,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash Impairment
Charges
|
|
|
132,839
|
|
|
428,500
|
|
|
132,839
|
|
|
428,500
|
|
|
-
|
Minnesota Idle &
Non-cash Inventory Charges
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
33,167
|
|
|
-
|
Iron Dynamics Outage
Impact
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,403
|
|
|
-
|
Adjusted Operating
Income
|
|
$
|
188,863
|
|
$
|
47,357
|
|
$
|
860,805
|
|
$
|
398,286
|
|
$
|
283,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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External
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Steel
(In tons)
|
|
|
2,041,078
|
|
|
1,777,597
|
|
|
8,558,331
|
|
|
7,703,749
|
|
|
2,104,219
|
Steel Shipped to
Internal Locations
|
|
|
165,066
|
|
|
167,921
|
|
|
687,615
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|
|
624,401
|
|
|
167,012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication (In tons)
|
|
|
132,186
|
|
|
141,731
|
|
|
562,725
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|
|
492,875
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|
|
142,585
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Metals
Recycling
|
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|
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|
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Nonferrous (In
000's of pounds)
|
|
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246,584
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241,442
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|
|
991,558
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|
|
997,367
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|
|
254,922
|
Ferrous (In gross
tons)
|
|
|
446,232
|
|
|
564,868
|
|
|
1,957,764
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|
|
2,384,288
|
|
|
468,498
|
Ferrous
Scrap Shipped to Internal Steel Mills
|
|
|
729,393
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|
|
629,543
|
|
|
3,112,616
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|
|
2,755,218
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|
|
774,779
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|
|
|
|
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|
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|
|
|
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|
|
Other Operating
Information
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton)
|
|
$
|
680
|
|
$
|
614
|
|
$
|
658
|
|
$
|
675
|
|
$
|
740
|
Average Ferrous Cost
(Per ton melted)
|
|
$
|
220
|
|
$
|
205
|
|
$
|
220
|
|
$
|
255
|
|
$
|
251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Roll
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler Division
|
|
|
685,788
|
|
|
601,502
|
|
|
2,914,534
|
|
|
2,539,399
|
|
|
742,785
|
Columbus Division
|
|
|
699,628
|
|
|
627,934
|
|
|
2,941,717
|
|
|
2,598,939
|
|
|
680,750
|
The
Techs
|
|
|
179,741
|
|
|
149,358
|
|
|
774,838
|
|
|
667,661
|
|
|
197,259
|
Long Product
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail Division-Structural
|
|
|
261,261
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|
|
216,659
|
|
|
1,062,302
|
|
|
923,564
|
|
|
274,482
|
-Rail
|
|
|
58,004
|
|
|
55,775
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|
|
237,249
|
|
|
261,545
|
|
|
56,212
|
Engineered Bar Products Division
|
|
|
134,262
|
|
|
99,257
|
|
|
507,163
|
|
|
509,083
|
|
|
125,108
|
Roanoke Bar Division
|
|
|
112,007
|
|
|
119,208
|
|
|
496,808
|
|
|
515,440
|
|
|
119,555
|
Steel of West Virginia
|
|
|
75,453
|
|
|
75,825
|
|
|
311,335
|
|
|
312,519
|
|
|
75,080
|
Total Steel Shipments
(In tons)
|
|
|
2,206,144
|
|
|
1,945,518
|
|
|
9,245,946
|
|
|
8,328,150
|
|
|
2,271,231
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Production (In tons)
|
|
|
2,237,200
|
|
|
1,982,315
|
|
|
9,503,465
|
|
|
8,528,885
|
|
|
2,341,659
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton)
|
|
$
|
1,310
|
|
$
|
1,290
|
|
$
|
1,249
|
|
$
|
1,366
|
|
$
|
1,253
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) Before
Taxes
|
|
$
|
2,820
|
|
$
|
(417,923)
|
|
$
|
564,133
|
|
$
|
(242,117)
|
|
$
|
243,305
|
Net Interest
Expense
|
|
|
34,752
|
|
|
36,107
|
|
|
141,148
|
|
|
152,609
|
|
|
34,867
|
Depreciation
|
|
|
64,199
|
|
|
65,927
|
|
|
261,281
|
|
|
264,294
|
|
|
65,473
|
Amortization of
Intangible Assets
|
|
|
7,406
|
|
|
5,872
|
|
|
28,765
|
|
|
24,180
|
|
|
7,208
|
Non-controlling
Interest
|
|
|
16,180
|
|
|
3,077
|
|
|
22,109
|
|
|
14,859
|
|
|
2,984
|
EBITDA
|
|
|
125,357
|
|
|
(306,940)
|
|
|
1,017,436
|
|
|
213,825
|
|
|
353,837
|
Non-cash
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Hedging (Gain) Loss
|
|
|
(143)
|
|
|
435
|
|
|
484
|
|
|
2,580
|
|
|
(880)
|
Inventory Valuation
|
|
154
|
|
|
2,349
|
|
|
986
|
|
|
28,541
|
|
|
405
|
Asset Impairment Charges
|
|
|
119,764
|
|
|
428,500
|
|
|
119,764
|
|
|
428,500
|
|
|
-
|
Equity Based Compensation
|
|
|
10,069
|
|
|
9,947
|
|
|
30,230
|
|
|
28,835
|
|
|
5,895
|
Financing Expenses
|
|
|
3,104
|
|
|
-
|
|
|
3,104
|
|
|
3,326
|
|
|
-
|
Adjusted
EBITDA
|
|
$
|
258,305
|
|
$
|
134,291
|
|
$
|
1,172,004
|
|
$
|
705,607
|
|
$
|
359,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss
fourth quarter and annual 2016 operating and financial results on
Wednesday, January 25, 2017, 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 30, 2017.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with facilities located throughout
the United States and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous
scrap.
Note Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). Management
believes that Adjusted Operating Income, Adjusted Net Income,
Adjusted Diluted Earnings Per Share, EBITDA and Adjusted EBITDA,
non-GAAP financial measures, provide additional meaningful
information regarding the company's performance and financial
strength. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the company's reported results
prepared in accordance with GAAP. In addition, because not
all companies use identical calculations, EBITDA included in this
release may not be comparable to similarly titled measures of other
companies.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements, which we
generally precede or accompany by such typical conditional words as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project" or "expect," or by the words "may," "will," or "should,"
are intended to be made as "forward-looking," subject to many risks
and uncertainties, within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. These statements
speak only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include:
(1) the effects of uncertain economic conditions;
(2) cyclical and changing industrial demand; (3) changes
in conditions in any of the steel or scrap-consuming sectors of the
economy which affect demand for our products, including the
strength of the non-residential and residential construction,
automotive, appliance, pipe and tube, and other steel-consuming
industries; (4) fluctuations in the cost of key raw materials
(including steel scrap, iron units, and energy costs) and our
ability to pass-on any cost increases; (5) the impact of
domestic and foreign import price competition;
(6) unanticipated difficulties in integrating or starting up
new or acquired businesses; (7) risks and uncertainties
involving product and/or technology development; and
(8) occurrences of unexpected plant outages or equipment
failures.
More specifically, we refer you to Steel Dynamics' more detailed
explanation of these and other factors and risks that may
cause such predictive statements to turn out differently, as set
forth in our most recent Annual Report on Form 10-K under the
headings Special Note Regarding Forward-Looking Statements
and Risk Factors, in our quarterly reports on Form 10-Q
or in other reports which we from time to time file with the
Securities and Exchange Commission. These are available publicly on
the SEC website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com.
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three
Months
|
|
December
31,
|
|
December
31,
|
|
Ended
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
September 30,
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,910,596
|
|
$
|
1,591,046
|
|
$
|
7,777,109
|
|
$
|
7,594,411
|
|
$
|
2,101,310
|
Costs of goods
sold
|
|
1,600,654
|
|
|
1,446,839
|
|
|
6,442,245
|
|
|
6,862,693
|
|
|
1,692,807
|
Gross
profit
|
|
309,942
|
|
|
144,207
|
|
|
1,334,864
|
|
|
731,718
|
|
|
408,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
94,110
|
|
|
86,551
|
|
|
374,009
|
|
|
328,758
|
|
|
95,185
|
Profit
sharing
|
|
19,563
|
|
|
4,427
|
|
|
71,285
|
|
|
23,064
|
|
|
22,255
|
Amortization of
intangible assets
|
|
7,406
|
|
|
5,872
|
|
|
28,765
|
|
|
24,180
|
|
|
7,208
|
Asset impairment
charges
|
|
132,839
|
|
|
428,500
|
|
|
132,839
|
|
|
428,500
|
|
|
-
|
Operating income
(loss)
|
|
56,024
|
|
|
(381,143)
|
|
|
727,966
|
|
|
(72,784)
|
|
|
283,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
36,149
|
|
|
36,616
|
|
|
146,037
|
|
|
153,950
|
|
|
36,199
|
Other expense
(income), net
|
|
17,055
|
|
|
164
|
|
|
17,796
|
|
|
15,383
|
|
|
4,351
|
Income (loss)
before income taxes
|
|
2,820
|
|
|
(417,923)
|
|
|
564,133
|
|
|
(242,117)
|
|
|
243,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
|
(1,012)
|
|
|
(161,607)
|
|
|
204,127
|
|
|
(96,947)
|
|
|
88,892
|
Net income
(loss)
|
|
3,832
|
|
|
(256,316)
|
|
|
360,006
|
|
|
(145,170)
|
|
|
154,413
|
Net loss attributable
to noncontrolling interests
|
|
16,180
|
|
|
3,077
|
|
|
22,109
|
|
|
14,859
|
|
|
2,984
|
Net income (loss)
attributable to Steel Dynamics, Inc.
|
$
|
20,012
|
|
$
|
(253,239)
|
|
$
|
382,115
|
|
$
|
(130,311)
|
|
$
|
157,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders
|
$
|
0.08
|
|
$
|
(1.04)
|
|
$
|
1.57
|
|
$
|
(0.54)
|
|
$
|
0.65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
243,687
|
|
|
242,558
|
|
|
243,576
|
|
|
242,017
|
|
|
243,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders, including the effect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of
assumed conversions when dilutive
|
$
|
0.08
|
|
$
|
(1.04)
|
|
$
|
1.56
|
|
$
|
(0.54)
|
|
$
|
0.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
share equivalents outstanding (Note 1)
|
|
245,511
|
|
|
242,558
|
|
|
245,298
|
|
|
242,017
|
|
|
245,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.1400
|
|
$
|
0.1375
|
|
$
|
0.5600
|
|
$
|
0.5500
|
|
$
|
0.1400
|
Note 1:
|
Excludes the impact
of common share equivalents outstanding for the three months and
year ended December 31, 2015,
because the impact on diluted loss per share is
anti-dilutive.
|
Steel Dynamics,
Inc.
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
|
December
31,
|
Assets
|
2016
|
|
|
2015
|
|
(unaudited)
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
841,483
|
|
|
$
|
727,032
|
Accounts
receivable, net
|
|
729,784
|
|
|
|
613,605
|
Inventories
|
|
1,275,211
|
|
|
|
1,149,390
|
Other
current assets
|
|
83,197
|
|
|
|
47,914
|
Total current
assets
|
|
2,929,675
|
|
|
|
2,537,941
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
2,787,215
|
|
|
|
2,951,210
|
|
|
|
|
|
|
|
Restricted
cash
|
|
18,060
|
|
|
|
19,565
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
283,977
|
|
|
|
278,960
|
|
|
|
|
|
|
|
Goodwill
|
|
393,351
|
|
|
|
397,470
|
|
|
|
|
|
|
|
Other
assets
|
|
11,454
|
|
|
|
16,936
|
Total
assets
|
$
|
6,423,732
|
|
|
$
|
6,202,082
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
395,196
|
|
|
$
|
283,355
|
Income
taxes payable
|
|
5,593
|
|
|
|
2,023
|
Accrued
expenses
|
|
308,394
|
|
|
|
233,232
|
Current
maturities of long-term debt
|
|
3,632
|
|
|
|
16,680
|
Total current
liabilities
|
|
712,815
|
|
|
|
535,290
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,353,194
|
|
|
|
2,577,976
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
448,375
|
|
|
|
400,770
|
|
|
|
|
|
|
|
Other
liabilities
|
|
20,649
|
|
|
|
16,595
|
Total
liabilities
|
|
3,535,033
|
|
|
|
3,530,631
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
111,240
|
|
|
|
126,340
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
641
|
|
|
|
638
|
Treasury
stock, at cost
|
|
(416,829)
|
|
|
|
(396,455)
|
Additional paid-in capital
|
|
1,132,749
|
|
|
|
1,110,253
|
Retained
earnings
|
|
2,210,459
|
|
|
|
1,965,291
|
Total Steel Dynamics,
Inc. equity
|
|
2,927,020
|
|
|
|
2,679,727
|
Noncontrolling interests
|
|
(149,561)
|
|
|
|
(134,616)
|
Total
equity
|
|
2,777,459
|
|
|
|
2,545,111
|
Total liabilities
and equity
|
$
|
6,423,732
|
|
|
$
|
6,202,082
|
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss)
|
$
|
3,832
|
|
$
|
(256,316)
|
|
$
|
360,006
|
|
$
|
(145,170)
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income (loss) to net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
73,139
|
|
|
73,289
|
|
|
296,109
|
|
|
294,595
|
Impairment
charges
|
|
132,839
|
|
|
428,500
|
|
|
132,839
|
|
|
428,500
|
Equity-based
compensation
|
|
10,069
|
|
|
9,949
|
|
|
31,656
|
|
|
30,181
|
Deferred income
taxes
|
|
(33)
|
|
|
(145,537)
|
|
|
53,846
|
|
|
(99,323)
|
Other
adjustments
|
|
17,450
|
|
|
4,129
|
|
|
20,676
|
|
|
19,886
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
43,193
|
|
|
189,006
|
|
|
(106,617)
|
|
|
311,302
|
Inventories
|
|
(13,236)
|
|
|
170,593
|
|
|
(115,575)
|
|
|
488,003
|
Accounts payable
|
|
(10,699)
|
|
|
(100,017)
|
|
|
106,521
|
|
|
(227,092)
|
Income taxes receivable/payable
|
|
(54,881)
|
|
|
(16,603)
|
|
|
(13,921)
|
|
|
12,706
|
Other assets and liabilities
|
|
5,734
|
|
|
(19,230)
|
|
|
87,229
|
|
|
(59,963)
|
Net cash provided by
operating activities
|
|
207,407
|
|
|
337,763
|
|
|
852,769
|
|
|
1,053,625
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(74,992)
|
|
|
(28,043)
|
|
|
(198,160)
|
|
|
(114,501)
|
Acquisition of businesses, net of cash acquired
|
|
(14,286)
|
|
|
-
|
|
|
(123,351)
|
|
|
(45,000)
|
Other
investing activities
|
|
2,851
|
|
|
3,690
|
|
|
8,618
|
|
|
16,874
|
Net cash used in
investing activities
|
|
(86,427)
|
|
|
(24,353)
|
|
|
(312,893)
|
|
|
(142,627)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term debt
|
|
400,000
|
|
|
28,897
|
|
|
473,903
|
|
|
207,930
|
Repayment of current and long-term debt
|
|
(656,855)
|
|
|
(51,105)
|
|
|
(728,993)
|
|
|
(625,924)
|
Dividends paid
|
|
(34,128)
|
|
|
(33,288)
|
|
|
(135,767)
|
|
|
(127,569)
|
Stock
option exercise proceeds, including related tax effect
|
|
1,961
|
|
|
3,520
|
|
|
9,564
|
|
|
10,781
|
Purchase
of treasury stock
|
|
(25,034)
|
|
|
-
|
|
|
(25,034)
|
|
|
-
|
Other
financing activities
|
|
(16,930)
|
|
|
(8,192)
|
|
|
(19,098)
|
|
|
(10,547)
|
Net cash used in
financing activities
|
|
(330,986)
|
|
|
(60,168)
|
|
|
(425,425)
|
|
|
(545,329)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and equivalents
|
|
(210,006)
|
|
|
253,242
|
|
|
114,451
|
|
|
365,669
|
Cash and equivalents
at beginning of period
|
|
1,051,489
|
|
|
473,790
|
|
|
727,032
|
|
|
361,363
|
Cash and
equivalents at end of period
|
$
|
841,483
|
|
$
|
727,032
|
|
$
|
841,483
|
|
$
|
727,032
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
$
|
53,074
|
|
$
|
44,845
|
|
$
|
150,679
|
|
$
|
160,190
|
Cash
paid (received) for income taxes, net
|
$
|
55,826
|
|
$
|
423
|
|
$
|
159,950
|
|
$
|
(9,898)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-fourth-quarter-and-annual-2016-results-300396009.html
SOURCE Steel Dynamics, Inc.