United States Steel Corporation Provides Preliminary Third Quarter 2019 Results
October 10 2019 - 8:30AM
Today, United States Steel Corporation (NYSE: X) provided
preliminary unaudited third quarter 2019 results to support the
Company’s upcoming capital market activities. We currently
expect third quarter 2019 net loss to be in a range of $94 – $84
million, or $0.55 – $0.49 per diluted share. Adjusted net
loss is expected to be in a range of $45 – $35 million, or $0.26 –
$0.20 per diluted share. In addition, we expect adjusted EBITDA to
be in a range of $134 – $144 million, which excludes approximately
$9 million of estimated third quarter impacts from the December 24,
2018 fire at our Clairton coke making facility and approximately
$54 million of estimated restructuring charges. Stronger
shipments and better than expected manufacturing performance in our
Flat-rolled segment, as well as a contingency gain from recovered
claims arising out of the bankruptcy of a supplier drove better
than expected results.
Our preliminary unaudited financial data was prepared by
management and is based solely on information currently available
to management. This preliminary unaudited financial
information is not a comprehensive statement of our financial
results for the third quarter 2019, and remains subject to, among
other things, the completion of our financial closing procedures,
final adjustments and completion of our internal review. As a
result, our final results may vary materially from the preliminary
estimates. We plan to report third quarter 2019 financial
results after market close on October 31, 2019. The following
table summarizes key preliminary unaudited financial
statistics.
|
UNITED STATES STEEL CORPORATION |
PRELIMINARY AND UNAUDITED KEY STATISTICS |
|
|
|
(Dollars in millions, except per share amounts) |
|
|
GAAP
Results: |
|
3Q 2019 Range |
Preliminary total net sales |
|
$ 3,040 – 3,075 |
Preliminary net loss attributable to United States Steel
Corporation |
|
(94) – (84) |
Preliminary diluted net loss per share |
|
(0.55) – (0.49) |
Preliminary operating cash flow |
|
21 – 31 |
Preliminary capital expenditures |
|
350 – 360 |
Preliminary cash and cash equivalents |
|
466 – 476 |
Preliminary liquidity1 |
|
1,950 – 1,980 |
|
|
|
NON-GAAP Results: |
|
3Q 2019 Range |
Preliminary adjusted net loss attributable to United States Steel
Corporation |
|
$ (45) – (35) |
Preliminary adjusted diluted net loss per share |
|
(0.26) – (0.20) |
Preliminary adjusted EBITDA |
|
134 – 144 |
1 Preliminary
liquidity represents preliminary cash and cash equivalents plus
availability under our credit facilities. Preliminary liquidity
reflects a $150 million reduction in availability under our ABL
credit facility as a result of the fact that we were not able to
meet a fixed charge coverage ratio of at least 1:00 to 1:00 for the
most recent four-quarter period. Preliminary liquidity does not
give effect to the committed ABL upsize of $500 million, which will
become available upon the closing of our planned Big River Steel
investment, previously announced by us on October 1, 2019, and the
satisfaction of customary conditions. |
|
Forward Looking Statements
This release contains information that may constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. We intend the
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements in those sections.
Generally, we have identified such forward-looking statements by
using the words “believe,” “expect,” “intend,” “estimate,”
“anticipate,” “project,” “target,” “forecast,” “aim,” “should,”
“will” and similar expressions or by using future dates in
connection with any discussion of, among other things, operating
performance, trends, events or developments that we expect or
anticipate will occur in the future, statements relating to volume
impacts, share of sales and earnings per share changes, and
statements expressing general views about future operating
results. However, the absence of these words or similar
expressions does not mean that a statement is not
forward-looking. Forward-looking statements are not
historical facts, but instead represent only the Company’s beliefs
regarding future events, many of which, by their nature, are
inherently uncertain and outside of the Company’s control. It
is possible that the Company’s actual results and financial
condition may differ, possibly materially, from the anticipated
results and financial condition indicated in these forward-looking
statements. Management believes that these forward-looking
statements are reasonable as of the time made. However,
caution should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only as of
the date when made. Our Company undertakes no obligation to
publicly update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except
as required by law. In addition, forward-looking statements
are subject to certain risks and uncertainties that could cause
actual results to differ materially from our Company's historical
experience and our present expectations or projections. These
risks and uncertainties include but are not limited to the risks
and uncertainties described in “Item 1A. Risk Factors” in our
Annual Report on Form 10-K for the year ended
December 31, 2018 and those described from time to time in our
future reports filed with the Securities and Exchange
Commission. References to "we," "us," "our," the "Company,"
and "U. S. Steel," refer to United States Steel Corporation and its
consolidated subsidiaries.
|
|
UNITED STATES STEEL CORPORATION |
|
NON-GAAP FINANCIAL MEASURES |
|
RECONCILIATION OF PRELIMINARY AND UNAUDITED ADJUSTED EBITDA |
|
|
|
|
|
(Dollars in
millions) |
|
|
|
Reconciliation to Preliminary Adjusted
EBITDA |
|
3Q 2019 Range |
|
Preliminary net loss attributable to United States Steel
Corporation |
$ |
(94) – (84 |
) |
Preliminary income tax benefit |
|
(44 |
) |
Preliminary net interest and other financial costs |
|
48 |
|
Preliminary depreciation, depletion and amortization |
|
161 |
|
Preliminary EBITDA |
$ |
71 – 81 |
|
Preliminary third quarter adjustments 1 |
|
63 |
|
Preliminary adjusted EBITDA |
$ |
134 – 144 |
|
|
|
|
|
|
|
|
|
UNITED STATES STEEL CORPORATION |
NON-GAAP FINANCIAL MEASURES |
RECONCILIATION OF PRELIMINARY AND UNAUDITED ADJUSTED NET LOSS |
|
(Dollars in millions, except per share amounts) |
|
|
|
Reconciliation to
Preliminary Adjusted Net Loss Attributable to U. S.
Steel |
|
3Q 2019 Range |
|
Preliminary net loss attributable to United States Steel
Corporation |
$ |
(94) – (84 |
) |
Preliminary third quarter adjustments 1,2 |
|
49 |
|
Preliminary adjusted net loss attributable to United States Steel
Corporation |
$ |
(45) – (35 |
) |
|
|
|
|
Reconciliation to
Preliminary Adjusted Diluted Net Loss Per Share |
|
3Q 2019 Range |
|
Preliminary diluted net loss per share |
$ |
(0.55) – (0.49 |
) |
Preliminary third quarter adjustments 1,2 |
|
0.29 |
|
Preliminary adjusted diluted net loss per share |
$ |
(0.26) – (0.20 |
) |
1 Includes impacts from the
December 24, 2018 fire at our Clairton coke making facility and
restructuring charges.2 These adjustments have been tax
effected. |
|
|
|
|
|
|
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Note Regarding Non-GAAP Financial Measures
We present adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share, earnings (loss) before interest, income
taxes, depreciation and amortization (EBITDA) and adjusted EBITDA,
which are non-GAAP measures, as additional measurements to enhance
the understanding of our operating performance. We believe
that adjusted EBITDA, considered along with net earnings (loss), is
a relevant indicator of trends relating to our operating
performance and provides management and investors with additional
information for comparison of our operating results to the
operating results of other companies.
Adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA are non-GAAP measures that
exclude the financial effects of the December 24, 2018 Clairton
coke making facility fire and restructuring charges that are not
part of the Company's core operations. We present adjusted
net earnings (loss), adjusted net earnings (loss) per diluted share
and adjusted EBITDA to enhance the understanding of our ongoing
operating performance and established trends affecting our core
operations, by excluding the financial effects of the December 24,
2018 Clairton coke making facility fire and restructuring charges
that can obscure underlying trends. U. S. Steel's management
considers adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share and adjusted EBITDA as alternative
measures of operating performance and not alternative measures of
the Company's liquidity. U. S. Steel’s management considers
adjusted net earnings (loss), adjusted net earnings (loss) per
diluted share and adjusted EBITDA useful to investors by
facilitating a comparison of our operating performance to the
operating performance of our competitors. Additionally, the
presentation of adjusted net earnings (loss), adjusted net earnings
(loss) per diluted share and adjusted EBITDA provides insight into
management’s view and assessment of the Company’s ongoing operating
performance, because management does not consider the adjusting
items when evaluating the Company’s financial performance.
Adjusted net earnings (loss), adjusted net earnings (loss)
per diluted share and adjusted EBITDA should not be considered a
substitute for net earnings (loss), earnings (loss) per diluted
share or other financial measures as computed in accordance with
U.S. GAAP and is not necessarily comparable to similarly titled
measures used by other companies.
United States Steel Corporation, headquartered in Pittsburgh,
Pa., is a leading integrated steel producer and Fortune 250 company
with major operations in the United States and Central
Europe. For more information about U. S. Steel, please visit
www.ussteel.com.
CONTACTS: |
Meghan
Cox |
Kevin
Lewis |
Manager |
General Manager |
Corporate Communications |
Investor Relations |
T – (412) 433-6777 |
T – (412) 433-6935 |
E – mmcox@uss.com |
E – klewis@uss.com |
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