FORT WAYNE, Ind., Oct. 19, 2020 /PRNewswire/ -- Steel
Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter 2020
financial results. The company reported third quarter 2020 net
sales of $2.3 billion and net income
of $100 million, or $0.47 per diluted share. Excluding the impact
from the following item, the company's third quarter 2020 adjusted
net income was $108 million, or
$0.51 per diluted share:
- Costs (net of capitalized interest) associated with the
construction of the company's Sinton,
Texas Flat Roll Steel Mill of approximately $11 million, or $0.04 per diluted share.
Comparatively, prior year third quarter net sales were
$2.5 billion, with net income of
$151 million, or $0.69 per diluted share. Sequential second
quarter 2020 net sales were $2.1
billion, with net income of $75
million, or $0.36 per diluted
share, which included refinancing costs of $0.08 per diluted share and costs (net of
capitalized interest) related to the construction of the
Texas steel mill of $0.03 per diluted share.
"The team delivered a solid performance despite the continued
challenges created by the coronavirus pandemic," said Mark D. Millett, President and Chief Executive
Officer. "We continue to operate safely, provide ongoing customer
support, and strengthen our capital foundation. Our spirit of
excellence was once again evidenced in our strong performance. Our
third quarter 2020 consolidated operating income was $156 million and adjusted EBITDA $238 million.
"The domestic steel demand recovery has been strong, with
automotive representing the most meaningful improvement and
construction continuing to be resilient," continued Millett.
"Flat roll steel spot prices
rebounded during the third quarter, as customer inventory levels
were extremely low and demand steadily improved. We expect to see
continued price strength and customer demand throughout 2020 and
into 2021. Our differentiated business model continues to drive
best-in-class performance. Our steel mills operated at 85 percent
of their production capability during the third quarter 2020, with
the flat roll group achieving a rate of 99 percent. This contrasts
to the domestic steel industry rate of 64 percent. Our continued
market share gains coupled with support from our fabrication and
steel processing businesses, reinforced our higher operating rates.
In addition, our metals recycling platform provided a competitive
advantage in sourcing ferrous scrap to support our steel
mills."
Third Quarter 2020 Comments
Third quarter 2020 operating income for the company's steel
operations was $144 million, or 17
percent lower than sequential second quarter results, due to metal
spread compression caused by lower realized selling values in the
company's flat roll business, mostly related to lagged contract
arrangements. The third quarter 2020 average external product
selling price for the company's steel operations decreased
$21 sequentially to $734 per ton. The average ferrous scrap cost per
ton melted at the company's steel mills decreased $7 sequentially to $259 per ton.
As states rescinded shelter-in-place mandates and manufacturing
businesses, specifically the automotive sector, restarted, scrap
flows dramatically improved in the third quarter. At the same time,
domestic steel production increased, resulting in a meaningful
increase in the company's metals recycling volumes and earnings.
Third quarter operating income from the company's metals recycling
operations was $15 million, compared
to an operating loss of $6 million in
the sequential second quarter.
The company's steel fabrication operations achieved record
quarterly operating income of $39
million, based on record quarterly shipments and metal
spread expansion as average selling values improved and steel input
costs declined. The steel fabrication platform's customer order
backlog remains strong and is higher than in 2018 or 2019.
Customers remain positive concerning non-residential construction
projects.
Year-to-Date September 30, 2020
Comparison
For the nine months ended September 30,
2020, net income was $363
million, or $1.71 per diluted
share, with net sales of $7.0
billion, as compared to net income of $550 million, or $2.47 per diluted share, with net sales of
$8.1 billion for the same period in
2019. Excluding the impact from the following items, the company's
nine months ended September 30, 2020
adjusted net income was $398 million,
or $1.88 per diluted share:
- Financing costs related to the company's June 2020 refinancing activities of approximately
$25 million, or $0.08 per diluted share, and
- Costs (net of capitalized interest) associated with the
construction of the company's Sinton Texas Flat Roll Steel Mill of
approximately $26 million, or
$0.09 per diluted share.
Year-to-date 2020 net sales decreased 14 percent and operating
income declined 27 percent to $588
million, when compared to the same period in 2019. Lower
earnings were primarily the result of steel metal spread
compression, as significantly lower average steel selling values
more than offset average ferrous scrap cost reductions across the
steel platform. Compared to prior year results, the average
year-to-date external product selling price for the company's steel
operations decreased $108 to
$755 per ton. The average
year-to-date ferrous scrap cost per ton melted at the company's
steel mills decreased $45 to
$264 per ton. Even though
year-to-date 2020 steel shipments were only one percent lower than
2019 results, the negative impact related to COVID-19 in the second
quarter of 2020 contributed significantly to the year-over-year
decline in earnings.
Based on the company's differentiated business model and highly
variable cost structure, the company generated strong cash flow
from operations of $849 million
during the first nine months of 2020, and invested $855 million in capital investments, of which the
new Sinton Texas steel mill
represented $640 million. During this
period, the company also paid cash dividends of $157 million and repurchased $107 million of its common stock, while
maintaining strong liquidity of $2.5
billion as of September 30,
2020.
Outlook
"We entered 2020 in a position of strength with ample cash and
available liquidity of $2.8 billion,
and we remain in a position of strength at the end of the third
quarter 2020," stated Millett. "Our differentiated business model
and performance-driven culture have proven our ability to generate
strong cash flow during the most challenging environments. We
entered 2020 prepared for the capital investment requirements
related to the construction of our new state-of-the art,
electric-arc-furnace (EAF) flat roll steel mill. We are excited
about this transformational strategic 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
EAF flat roll steel producers, competing even more effectively with
the integrated steel model and foreign competition, as well as
providing a much more environmentally friendly steel production
alternative for our customers. Construction is going well and
remains within our expected project cost of $1.9 billion, with plans to commence operations
mid-year 2021.
"We have targeted specific regional steel consuming markets. Our
facility is located and designed to have a meaningful competitive
advantage in these regions and in the displacement of imports. We
have signed long-term agreements with three customers to co-locate
on our site, and they plan to represent annual steel consuming and
processing capability of between 800,000 to 1.0 million tons of
flat roll steel. In August, we also completed the acquisition of
Zimmer, a Mexican metals recycling company, which is an important
part of our raw material strategy for the facility. I would like to
welcome the Zimmer team to the Steel Dynamics family!
"The domestic economy is recovering from the shock of COVID-19
although it is still difficult to know the full extent of its
eventual impact. However, we are currently seeing a solid
recovery in domestic steel demand," continued Millett. "The
automotive sector has seen the strongest improvement, and the
construction sector has remained resilient. We are seeing pent up
demand, as steel service center inventories were extremely low and
still remain low compared to historical norms. Energy remains the
weakest end market.
"Our commitment is to the safety of our teams, families,
communities and to meet the needs of our customers. Our culture and
our business model continue to positively differentiate our
performance from the rest of the industry, and we are in a place of
strength. We are competitively positioned and focused to deliver
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
third quarter 2020 operating and financial results on Tuesday, October 20, 2020, at 10:00
a.m. Eastern Daylight 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 Daylight
Time on October 25, 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,
Adjusted Net Income, Adjusted Diluted Earnings Per Share, 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 a guarantee 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) the effects of
pandemics or other health issues, such as the recent novel
coronavirus outbreak (COVID-19); (3) cyclical and changing
industrial demand; (4) 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,
energy, and other steel-consuming industries; (5) 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; (6) the impact of domestic
and foreign imports, including trade policy, restrictions, or
agreements; (7) unanticipated difficulties in integrating or
starting up new, acquired or planned businesses or assets; (8)
risks and uncertainties involving product and/or technology
development; and (9) 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 Securities and Exchange
Commission website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com under "Investors — SEC Filings".
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
Three
Months
|
|
|
September
30,
|
|
September
30,
|
|
Ended
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
June 30,
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
2,330,832
|
|
$
|
2,526,845
|
|
$
|
7,000,237
|
|
$
|
8,114,795
|
|
$
|
2,094,305
|
Costs of goods
sold
|
|
|
2,038,017
|
|
|
2,167,006
|
|
|
6,007,762
|
|
|
6,900,220
|
|
|
1,809,874
|
Gross
profit
|
|
|
292,815
|
|
|
359,839
|
|
|
992,475
|
|
|
1,214,575
|
|
|
284,431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
118,235
|
|
|
107,242
|
|
|
340,432
|
|
|
324,530
|
|
|
109,299
|
Profit
sharing
|
|
|
11,778
|
|
|
17,848
|
|
|
42,324
|
|
|
64,396
|
|
|
9,092
|
Amortization of
intangible assets
|
|
|
6,946
|
|
|
6,704
|
|
|
21,327
|
|
|
20,730
|
|
|
7,190
|
Operating
income
|
|
|
155,856
|
|
|
228,045
|
|
|
588,392
|
|
|
804,919
|
|
|
158,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
|
18,950
|
|
|
31,339
|
|
|
74,671
|
|
|
94,782
|
|
|
27,702
|
Other expense
(income), net
|
|
|
3,546
|
|
|
(4,545)
|
|
|
29,060
|
|
|
(15,137)
|
|
|
28,103
|
Income before
income taxes
|
|
|
133,360
|
|
|
201,251
|
|
|
484,661
|
|
|
725,274
|
|
|
103,045
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
|
29,083
|
|
|
48,643
|
|
|
110,783
|
|
|
171,093
|
|
|
24,280
|
Net
income
|
|
|
104,277
|
|
|
152,608
|
|
|
373,878
|
|
|
554,181
|
|
|
78,765
|
Net income
attributable to noncontrolling interests
|
|
|
(4,134)
|
|
|
(1,560)
|
|
|
(10,899)
|
|
|
(4,503)
|
|
|
(3,269)
|
Net income
attributable to Steel Dynamics, Inc.
|
|
$
|
100,143
|
|
$
|
151,048
|
|
$
|
362,979
|
|
$
|
549,678
|
|
$
|
75,496
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders
|
|
$
|
0.48
|
|
$
|
0.69
|
|
$
|
1.72
|
|
$
|
2.49
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
210,366
|
|
|
217,873
|
|
|
211,321
|
|
|
221,145
|
|
|
210,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Dynamics, Inc. stockholders, including the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
effect of assumed conversions when dilutive
|
|
$
|
0.47
|
|
$
|
0.69
|
|
$
|
1.71
|
|
$
|
2.47
|
|
$
|
0.36
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and
share equivalents outstanding
|
|
|
211,926
|
|
|
219,109
|
|
|
212,443
|
|
|
222,197
|
|
|
211,378
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
$
|
0.25
|
|
$
|
0.24
|
|
$
|
0.75
|
|
$
|
0.72
|
|
$
|
0.25
|
Steel Dynamics,
Inc.
CONSOLIDATED
BALANCE SHEETS
(in
thousands)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
December
31,
|
Assets
|
2020
|
|
|
2019
|
|
(unaudited)
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and
equivalents
|
$
|
1,267,618
|
|
|
$
|
1,381,460
|
Short-term investments
|
|
-
|
|
|
|
262,174
|
Accounts
receivable, net
|
|
918,842
|
|
|
|
844,336
|
Inventories
|
|
1,609,216
|
|
|
|
1,689,043
|
Other
current assets
|
|
59,219
|
|
|
|
76,012
|
Total current
assets
|
|
3,854,895
|
|
|
|
4,253,025
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
3,862,375
|
|
|
|
3,135,886
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
306,574
|
|
|
|
327,901
|
|
|
|
|
|
|
|
Goodwill
|
|
474,520
|
|
|
|
452,915
|
|
|
|
|
|
|
|
Other
assets
|
|
119,192
|
|
|
|
106,038
|
Total
assets
|
$
|
8,617,556
|
|
|
$
|
8,275,765
|
Liabilities and
Equity
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
$
|
715,681
|
|
|
$
|
513,344
|
Income
taxes payable
|
|
827
|
|
|
|
2,014
|
Accrued
expenses
|
|
376,891
|
|
|
|
401,984
|
Current
maturities of long-term debt
|
|
82,229
|
|
|
|
89,356
|
Total current
liabilities
|
|
1,175,628
|
|
|
|
1,006,698
|
|
|
|
|
|
|
|
Long-term
debt
|
|
2,636,615
|
|
|
|
2,644,988
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
512,503
|
|
|
|
484,169
|
|
|
|
|
|
|
|
Other
liabilities
|
|
94,011
|
|
|
|
75,055
|
Total
liabilities
|
|
4,418,757
|
|
|
|
4,210,910
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
155,414
|
|
|
|
143,614
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Common
stock
|
|
646
|
|
|
|
646
|
Treasury
stock, at cost
|
|
(1,623,805)
|
|
|
|
(1,525,113)
|
Additional paid-in capital
|
|
1,200,228
|
|
|
|
1,181,012
|
Retained
earnings
|
|
4,624,019
|
|
|
|
4,419,296
|
Accumulated other comprehensive income (loss)
|
|
95
|
|
|
|
(7)
|
Total Steel Dynamics,
Inc. equity
|
|
4,201,183
|
|
|
|
4,075,834
|
Noncontrolling interests
|
|
(157,798)
|
|
|
|
(154,593)
|
Total
equity
|
|
4,043,385
|
|
|
|
3,921,241
|
Total liabilities
and equity
|
$
|
8,617,556
|
|
|
$
|
8,275,765
|
Steel Dynamics,
Inc.
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
104,277
|
|
$
|
152,608
|
|
$
|
373,878
|
|
$
|
554,181
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided
by
|
|
|
|
|
|
|
|
|
|
|
|
operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
81,752
|
|
|
79,470
|
|
|
240,732
|
|
|
240,555
|
Equity-based
compensation
|
|
9,486
|
|
|
8,841
|
|
|
36,850
|
|
|
33,229
|
Deferred income
taxes
|
|
10,388
|
|
|
11,311
|
|
|
30,949
|
|
|
34,952
|
Other
adjustments
|
|
17,237
|
|
|
(1,116)
|
|
|
21,701
|
|
|
(952)
|
Changes in certain
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
(58,271)
|
|
|
85,633
|
|
|
(57,991)
|
|
|
95,195
|
Inventories
|
|
(38,236)
|
|
|
35,479
|
|
|
83,790
|
|
|
139,889
|
Other assets
|
|
(3,894)
|
|
|
39
|
|
|
5,702
|
|
|
7,632
|
Accounts payable
|
|
645
|
|
|
1,111
|
|
|
121,764
|
|
|
(54,167)
|
Income taxes receivable/payable
|
|
(27,127)
|
|
|
6,293
|
|
|
33,251
|
|
|
19,715
|
Accrued expenses
|
|
55,533
|
|
|
64,533
|
|
|
(41,545)
|
|
|
(83,001)
|
Net cash provided by
operating activities
|
|
151,790
|
|
|
444,202
|
|
|
849,081
|
|
|
987,228
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
(327,647)
|
|
|
(154,131)
|
|
|
(854,898)
|
|
|
(293,687)
|
Purchases of short-term investments
|
|
-
|
|
|
(34,884)
|
|
|
(149,359)
|
|
|
(134,026)
|
Proceeds
from maturities of short-term investments
|
|
69,545
|
|
|
79,508
|
|
|
411,533
|
|
|
293,279
|
Acquisition of business, net of cash and restricted cash
acquired
|
|
(59,012)
|
|
|
(3,694)
|
|
|
(59,012)
|
|
|
(97,106)
|
Other
investing activities
|
|
380
|
|
|
2,746
|
|
|
1,701
|
|
|
4,023
|
Net cash used in
investing activities
|
|
(316,734)
|
|
|
(110,455)
|
|
|
(650,035)
|
|
|
(227,517)
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term debt
|
|
295,814
|
|
|
128,230
|
|
|
1,611,849
|
|
|
374,686
|
Repayment of current and long-term debt
|
|
(305,911)
|
|
|
(119,988)
|
|
|
(1,645,482)
|
|
|
(369,134)
|
Dividends paid
|
|
(52,592)
|
|
|
(52,751)
|
|
|
(156,657)
|
|
|
(148,493)
|
Purchase
of treasury stock
|
|
-
|
|
|
(114,950)
|
|
|
(106,529)
|
|
|
(292,394)
|
Other
financing activities
|
|
(1,587)
|
|
|
(1,527)
|
|
|
(16,502)
|
|
|
(7,259)
|
Net cash used in
financing activities
|
|
(64,276)
|
|
|
(160,986)
|
|
|
(313,321)
|
|
|
(442,594)
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash, cash equivalents, and restricted cash
|
|
(229,220)
|
|
|
172,761
|
|
|
(114,275)
|
|
|
317,117
|
Cash, cash
equivalents, and restricted cash at beginning of period
|
|
1,502,342
|
|
|
978,779
|
|
|
1,387,397
|
|
|
834,423
|
Cash, cash
equivalents, and restricted cash at end of period
|
$
|
1,273,122
|
|
$
|
1,151,540
|
|
$
|
1,273,122
|
|
$
|
1,151,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash
paid for interest
|
$
|
8,597
|
|
$
|
9,115
|
|
$
|
77,050
|
|
$
|
71,702
|
Cash
paid for income taxes, net
|
$
|
43,900
|
|
$
|
29,794
|
|
$
|
45,848
|
|
$
|
116,149
|
Steel Dynamics,
Inc.
SUPPLEMENTAL
INFORMATION
(dollars in
thousands)
|
|
|
|
|
Third
Quarter
|
|
|
Year to
Date
|
|
|
|
|
|
|
|
|
|
|
2020
|
|
|
2019
|
|
|
2020
|
|
|
2019
|
|
|
1Q
2020
|
|
|
2Q
2020
|
External Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
$
|
1,696,530
|
|
$
|
1,922,528
|
|
$
|
5,266,263
|
|
$
|
6,153,448
|
|
$
|
1,941,706
|
|
$
|
1,628,027
|
Fabrication
|
|
|
|
241,538
|
|
|
246,078
|
|
|
677,724
|
|
|
715,982
|
|
|
220,936
|
|
|
215,250
|
Metals
Recycling
|
|
|
|
272,463
|
|
|
280,908
|
|
|
720,902
|
|
|
955,145
|
|
|
291,856
|
|
|
156,583
|
Other
|
|
|
|
120,301
|
|
|
77,331
|
|
|
335,348
|
|
|
290,220
|
|
|
120,602
|
|
|
94,445
|
Consolidated Net
Sales
|
|
$
|
2,330,832
|
|
$
|
2,526,845
|
|
$
|
7,000,237
|
|
$
|
8,114,795
|
|
$
|
2,575,100
|
|
$
|
2,094,305
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
$
|
143,573
|
|
$
|
239,587
|
|
$
|
608,714
|
|
$
|
846,793
|
|
$
|
292,746
|
|
$
|
172,395
|
Fabrication
|
|
|
|
39,272
|
|
|
35,321
|
|
|
95,672
|
|
|
86,690
|
|
|
29,204
|
|
|
27,196
|
Metals
Recycling
|
|
|
|
15,467
|
|
|
2,894
|
|
|
17,875
|
|
|
33,466
|
|
|
8,326
|
|
|
(5,918)
|
Operations
|
|
|
|
198,312
|
|
|
277,802
|
|
|
722,261
|
|
|
966,949
|
|
|
330,276
|
|
|
193,673
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash
amortization of intangible assets
|
|
|
|
(6,946)
|
|
|
(6,704)
|
|
|
(21,327)
|
|
|
(20,730)
|
|
|
(7,191)
|
|
|
(7,190)
|
Profit
sharing expense
|
|
|
|
(11,778)
|
|
|
(17,848)
|
|
|
(42,324)
|
|
|
(64,396)
|
|
|
(21,454)
|
|
|
(9,092)
|
Non-segment operations
|
|
|
|
(23,732)
|
|
|
(25,205)
|
|
|
(70,218)
|
|
|
(76,904)
|
|
|
(27,945)
|
|
|
(18,541)
|
Consolidated Operating
Income
|
|
$
|
155,856
|
|
$
|
228,045
|
|
$
|
588,392
|
|
$
|
804,919
|
|
$
|
273,686
|
|
$
|
158,850
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
104,277
|
|
$
|
152,608
|
|
$
|
373,878
|
|
$
|
554,181
|
|
$
|
190,836
|
|
$
|
78,765
|
Income
taxes
|
|
|
|
29,083
|
|
|
48,643
|
|
|
110,783
|
|
|
171,093
|
|
|
57,420
|
|
|
24,280
|
Net interest
expense
|
|
|
|
18,401
|
|
|
24,107
|
|
|
66,040
|
|
|
73,722
|
|
|
21,790
|
|
|
25,849
|
Depreciation
|
|
|
|
73,364
|
|
|
71,456
|
|
|
215,213
|
|
|
215,887
|
|
|
71,733
|
|
|
70,116
|
Amortization of
intangible assets
|
|
|
|
6,946
|
|
|
6,704
|
|
|
21,327
|
|
|
20,730
|
|
|
7,191
|
|
|
7,190
|
Noncontrolling
interest
|
|
|
|
(4,133)
|
|
|
(1,560)
|
|
|
(10,899)
|
|
|
(4,503)
|
|
|
(3,496)
|
|
|
(3,270)
|
EBITDA
|
|
|
227,938
|
|
|
301,958
|
|
|
776,342
|
|
|
1,031,110
|
|
|
345,474
|
|
|
202,930
|
Non-cash
adjustments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized hedging gain
|
|
|
|
915
|
|
|
3,697
|
|
|
(555)
|
|
|
1,720
|
|
|
(1,262)
|
|
|
(208)
|
Inventory valuation
|
|
|
47
|
|
|
278
|
|
|
1,164
|
|
|
870
|
|
|
859
|
|
|
258
|
Equity-based compensation
|
|
|
|
9,487
|
|
|
8,842
|
|
|
29,818
|
|
|
28,541
|
|
|
10,812
|
|
|
9,519
|
Refinancing charges
|
|
|
|
-
|
|
|
-
|
|
|
4,907
|
|
|
-
|
|
|
-
|
|
|
4,907
|
Adjusted EBITDA
|
|
$
|
238,387
|
|
$
|
314,775
|
|
$
|
811,676
|
|
$
|
1,062,241
|
|
$
|
355,883
|
|
$
|
217,406
|
Other Operating
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average external sales
price (Per ton) (a)
|
|
|
$
|
734
|
|
$
|
809
|
|
$
|
755
|
|
$
|
863
|
|
$
|
774
|
|
$
|
755
|
Average ferrous cost
(Per ton melted) (b)
|
|
|
$
|
259
|
|
$
|
275
|
|
$
|
264
|
|
$
|
309
|
|
$
|
267
|
|
$
|
266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Flat Roll
shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler and Columbus Flat Roll divisions
|
|
|
|
1,499,873
|
|
|
1,527,230
|
|
|
4,442,610
|
|
|
4,628,544
|
|
|
1,584,264
|
|
|
1,358,473
|
Steel Processing divisions (c)
|
|
|
|
460,854
|
|
|
427,645
|
|
|
1,285,672
|
|
|
1,181,269
|
|
|
405,981
|
|
|
418,837
|
Long Product
shipments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural and Rail Division
|
|
|
|
393,519
|
|
|
366,306
|
|
|
1,228,551
|
|
|
1,094,582
|
|
|
434,882
|
|
|
400,150
|
Engineered Bar Products Division
|
|
|
|
138,948
|
|
|
176,564
|
|
|
466,135
|
|
|
579,082
|
|
|
189,801
|
|
|
137,386
|
Roanoke Bar Division
|
|
|
|
113,898
|
|
|
123,495
|
|
|
379,224
|
|
|
404,355
|
|
|
140,222
|
|
|
125,104
|
Steel of West Virginia
|
|
|
|
75,594
|
|
|
90,669
|
|
|
245,695
|
|
|
277,846
|
|
|
92,032
|
|
|
78,069
|
Total Shipments (Tons)
|
|
|
2,682,686
|
|
|
2,711,909
|
|
|
8,047,887
|
|
|
8,165,678
|
|
|
2,847,182
|
|
|
2,518,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External Shipments (Tons) (a)
|
|
|
2,310,004
|
|
|
2,362,915
|
|
|
6,958,024
|
|
|
7,096,975
|
|
|
2,495,164
|
|
|
2,152,856
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Mill Production (Tons)
|
|
|
2,320,134
|
|
|
2,369,423
|
|
|
6,987,533
|
|
|
7,181,878
|
|
|
2,535,233
|
|
|
2,132,167
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous shipments
(000's of pounds)
|
|
|
|
267,338
|
|
|
257,087
|
|
|
706,330
|
|
|
815,347
|
|
|
272,078
|
|
|
166,914
|
Ferrous shipments
(Gross tons)
|
|
|
|
1,256,351
|
|
|
1,169,963
|
|
|
3,250,565
|
|
|
3,531,003
|
|
|
1,192,144
|
|
|
802,070
|
External ferrous shipments (Gross tons)
|
|
|
369,576
|
|
|
396,135
|
|
|
961,197
|
|
|
1,204,453
|
|
|
393,651
|
|
|
197,970
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average sales price
(Per ton)
|
|
|
$
|
1,375
|
|
$
|
1,464
|
|
$
|
1,365
|
|
$
|
1,523
|
|
$
|
1,356
|
|
$
|
1,364
|
Shipments
(Tons)
|
|
|
|
179,375
|
|
|
168,571
|
|
|
502,854
|
|
|
470,776
|
|
|
163,312
|
|
|
160,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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-third-quarter-2020-results-301155206.html
SOURCE Steel Dynamics, Inc.