Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”), a leading Canadian producer of hot and cold rolled steel
sheet and plate products, today announced results for its fiscal
second quarter ended September 30, 2024.
Unless otherwise specified, all amounts are in
Canadian dollars.
Business Highlights and Fiscal 2025 to Fiscal 2024
Second Quarter Comparisons
- Consolidated revenue of $600.3
million, compared to $732.6 million in the prior-year quarter,
mainly attributable to lower steel shipments and realized
prices.
- Consolidated loss from operations of
$83.6 million, compared to income of $36.8 million in the
prior-year quarter.
- Net loss of $106.6 million, compared
to net income of $31.1 million in the prior-year quarter.
- Adjusted EBITDA of $3.5 million and
Adjusted EBITDA margin of 0.6%, compared to $81.0 million and 11.1%
in the prior-year quarter (See “Non-IFRS Measures” below).
- Cash flows generated from operations
of $25.5 million, compared to $57.2 million in the prior-year
quarter.
- Shipments of 520,443 tons, compared
to 548,998 tons in the prior-year quarter.
- Paid quarterly dividend of
US$0.05/share.
Michael Garcia, the Company’s Chief Executive
Officer, commented, “Our fiscal second quarter results reflect
solid operational performance in the face of persistent market
headwinds, allowing us to deliver shipments and Adjusted EBITDA
within our previous guidance ranges. Despite challenging market
conditions, our planned ramp up in plate production following
completion of our plate mill modernization project continued in the
quarter and the associated benefits from a greater mix of
value-added products helped offset a steep decline in steel
prices.”
Mr. Garcia continued, “This is an incredibly
exciting time at our site as we prepare to initiate commissioning
activities on schedule for our transformative EAF project. Our
project team has worked tirelessly alongside our vendors including
equipment providers and subcontractors to secure substantially all
remaining budgeted items, significantly reducing remaining project
budget risk. Our contracted commitments now total approximately
$870 million and as we move closer to completion of both EAFs, we
anticipate the completion of the remaining contracts, including
those structured as time and materials, within 5% of the upper end
of our previously announced budget range.”
Garcia continued, “We are also excited to
announce that Algoma’s EAF project is eligible under Ontario’s
Ministry of the Environment, Conservation and Parks Emissions
Performance Program. Under this program, Algoma has applied for,
and expects to receive, reimbursement for carbon taxes paid since
2022, driving down the net cash costs of the EAF project. We remain
on target to achieve steel production at the first EAF by the end
of the first quarter 2025, positioning us among North America’s
greenest steel producers as we seek to deliver enhanced long-term
shareholder value.”
Second Quarter Fiscal 2025 Financial
Results
Second quarter revenue totaled $600.3 million,
compared to $732.6 million in the prior-year quarter. As compared
with the prior-year quarter, steel revenue was $539.0 million,
compared to $665.8 million, and revenue per ton of steel sold was
$1,153, compared to $1,334.
Loss from operations was $83.6 million, compared
to income from operations of $36.8 million in the prior-year
quarter. The decrease was primarily due to lower steel shipments,
greater consumption of purchased coke, and weakening market
conditions, which was partially offset by improvements in value-add
products as a percentage of sales mix.
Net loss in the second quarter was $106.6
million, compared to net income of $31.1 million in the prior-year
quarter. The decrease was driven primarily by the factors described
above under (loss) income from operations.
Adjusted EBITDA in the second quarter was $3.5
million, compared with $81.0 million for the prior-year quarter.
This resulted in an Adjusted EBITDA margin of 0.6%. Average
realized price of steel net of freight and non-steel revenue was
$1,036 per ton, compared to $1,213 per ton in the prior-year
quarter. Cost per ton of steel products sold was $1,032, compared
to $1,021 in the prior-year quarter. Shipments for the second
quarter decreased by 5.2% to 520,443 tons, compared to 548,998 tons
in the prior-year quarter. Also, Fiscal second quarter adjusted
EBITDA was positively impacted by $28.1 million as a result of
receipt of insurance proceeds of $32.1 million offset by costs of
$4 million associated with the January 2024 outage resulting from
the collapse of a utility corridor, supporting the steelworks. See
“Non-IFRS Measures” below for an explanation of Adjusted EBITDA and
a reconciliation of net income to Adjusted EBITDA.
Electric Arc Furnace
The Company has made substantial progress on the
construction of two new state-of-the-art electric arc furnaces
(“EAF”) to replace its existing blast furnace and basic oxygen
steelmaking operations. The project continues to advance on time
with commissioning activities set to begin by calendar 2024
year-end and steel production expected by the end of the first
calendar quarter of 2025. As of September 30, 2024, the cumulative
investment was approximately $672.3 million including approximately
$61.2 million during the fiscal second quarter. Contracted
commitments now total approximately $870 million and as the project
moves closer to completion the Company anticipates completing the
remaining contracts, including time and material agreements, within
5% of the high end of the previously announced budget range.
Algoma’s EAF project qualifies for the Ontario
Ministry of the Environment, Conservation and Parks Emissions
Performance Program. Under this program, the Company has applied
for and expects to receive reimbursement for carbon taxes paid
since 2022. These reimbursements are anticipated to reduce the
project’s net cash cost, and along with cash-on-hand, operating
cash flow, and available borrowings from the Company’s existing
undrawn credit facility, provide ample liquidity to fund the
balance of the project.
Following the transformation to EAF steelmaking,
the Company is anticipated to have an annual raw steel production
capacity of approximately 3.7 million tons, matching its downstream
finishing capacity of over 3 million tons, which is expected to
reduce the Company’s annual carbon emissions by approximately
70%.
Balance Sheet and Liquidity
At quarter end, the Company had cash of $452.0
million and unused availability under its Revolving Credit Facility
of $342.8 million.
Quarterly Dividend
The Board has declared a regular quarterly
dividend in the amount of US$0.05 on each common share outstanding,
payable on December 27, 2024 to holders of record of common shares
of the Corporation as of the close of business on November 27,
2024. This dividend is designated as an “eligible dividend” for
Canadian income tax purposes.
Change in Fiscal Year
The Company today announced that its Board of
Directors has approved a change in Algoma’s fiscal year end from
March 31 to December 31. This change is being made to better align
Algoma’s reporting calendar with other companies in the industry.
Algoma’s current fiscal year will end on December 31, 2024,
resulting in a nine-month reporting period from April 1, 2024 to
December 31, 2024. Algoma plans to provide reclassified historical
financial information in the first quarter of 2025 to assist
investors in evaluating the impact the change in fiscal year will
have on the reported annual operating results for the years ending
December 31, 2023 and 2024.
Normal Course Issuer Bid
On August 29, 2024 the Company announced the
renewal of its normal course issuer bid (NCIB) after receiving
approval from the Toronto Stock Exchange, authorizing the Company
to acquire up to a maximum of 5,206,153 shares, or 5% of its
104,123,072 issued and outstanding shares, and up to a maximum of
1,208,950 of its Warrants, or 5% of its 24,179,000 issued and
outstanding Warrants, in each case as of August 26, 2024. In
accordance with TSX rules, the number of Shares that can be
purchased pursuant to the NCIB is subject to current daily maximums
of 12,066 Shares (which is equal to 25% of 48,264 Shares, being the
average daily trading volume from February 1, 2024 to July 1, 2024)
and 1,000 Warrants (as 25% of 1,059 Warrants, being the average
daily trading volume from February 1, 2024 to July 1, 2024, is less
than the 1,000 limit). The NCIB is also being conducted in
accordance with applicable U.S. securities laws. The NCIB expires
on September 4, 2025 if not fully exercised. The Company did not
repurchase any Shares or Warrants from the market under the NCIB
during the fiscal quarter ended September 30, 2024.
Conference Call and Webcast
Details
A webcast and conference call will be held on
Thursday, November 7, 2024 at 11:00 a.m. EDT to review the
Company’s fiscal second quarter results, discuss recent events, and
conduct a question-and-answer session.
The live webcast and archived replay of the
conference call can be accessed on the Investors section of the
Company’s website at www.algoma.com. For those unable to access the
webcast, the conference call will be accessible domestically or
internationally by dialing 877-425-9470 or 201-389-0878,
respectively. Upon dialing in, please request to join the Algoma
Steel Second Quarter Conference Call. To access the replay of the
call, dial 844-512-2921 (domestic) or 412-317-6671 (international)
with passcode 13749211.
Consolidated Financial Statements and
Management's Discussion and Analysis
The Company's unaudited condensed interim
financial statements for the three and six month periods ended
September 30, 2024, and September 30, 2023, and Management's
Discussion & Analysis thereon are available under the Company’s
profile on the U.S. Securities and Exchange Commission’s (“SEC”)
EDGAR website at www.sec.gov and under the Company's profile on
SEDAR+ at www.sedarplus.com. These documents are also available on
the Company’s website, www.algoma.com, and shareholders may receive
hard copies of such documents free of charge upon request by
contacting IR@algoma.com.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding
trends in the pricing of steel, Algoma’s expectation to continue to
pay a quarterly dividend, Algoma’s transition to EAF steelmaking,
including the progress, expected costs and timing of completion and
commissioning of the Company’s EAF project and for its start of
steel production, Algoma’s annual raw steel production capacity and
reduced carbon emissions upon completion of the EAF project,
Algoma's maintenance of the NCIB and potential use thereof,
Algoma’s future as a leading producer of green steel, Algoma’s
modernization of its plate mill facilities, transformation journey,
ability to deliver greater and long-term value, ability to offer
North America a secure steel supply and a sustainable future, and
investment in its people, and processes, and statements regarding
Algoma's available liquidity and the change of its fiscal year end,
and the Company’s strategy, plans or future financial or operating
performance. These forward-looking statements generally are
identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “design,” “pipeline,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document. Readers should
also consider the other risks and uncertainties set forth in the
section entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Information” in Algoma’s Annual Information Form,
filed by Algoma with applicable Canadian securities regulatory
authorities (available under the Company’s SEDAR+ profile at
www.sedarplus.ca) and with the SEC, as part of Algoma’s Annual
Report on Form 40-F (available at www.sec.gov), as well as in
Algoma’s current reports with the Canadian securities regulatory
authorities and SEC. Forward-looking statements speak only as of
the date they are made. Readers are cautioned not to put undue
reliance on forward-looking statements, and Algoma assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Non-IFRS Financial
Measures
To supplement our financial statements, which
are prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board
(“IFRS”), we use certain non-IFRS measures to evaluate the
performance of Algoma. These terms do not have any standardized
meaning prescribed within IFRS and, therefore, may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing a further understanding
of our financial performance from management’s perspective.
Accordingly, they should not be considered in isolation nor as a
substitute for analysis of our financial information reported under
IFRS.
Adjusted EBITDA, as we define it, refers to net
income (loss) before amortization of property, plant, equipment and
amortization of intangible assets, finance costs, interest on
pension and other post-employment benefit obligations, income
taxes, foreign exchange loss (gain), finance income, carbon tax,
changes in fair value of warrant, earnout and share-based
compensation liabilities, earnout and share-based compensation
liabilities, and share-based compensation related to performance
share units. Adjusted EBITDA margin is calculated by dividing
Adjusted EBITDA by revenue for the corresponding period. Adjusted
EBITDA is not intended to represent cash flow from operations, as
defined by IFRS, and should not be considered as alternatives to
net profit (loss) from operations, or any other measure of
performance prescribed by IFRS. Adjusted EBITDA, as we define and
use it, may not be comparable to Adjusted EBITDA as defined and
used by other companies. We consider Adjusted EBITDA to be a
meaningful measure to assess our operating performance in addition
to IFRS measures. It is included because we believe it can be
useful in measuring our operating performance and our ability to
expand our business and provide management and investors with
additional information for comparison of our operating results
across different time periods and to the operating results of other
companies. Adjusted EBITDA is also used by analysts and our lenders
as a measure of our financial performance. In addition, we consider
Adjusted EBITDA margin to be a useful measure of our operating
performance and profitability across different time periods that
enhance the comparability of our results. However, these measures
have limitations as analytical tools and should not be considered
in isolation from, or as alternatives to, net income, cash flow
from operations or other data prepared in accordance with IFRS.
Because of these limitations, such measures should not be
considered as measures of discretionary cash available to invest in
business growth or to reduce indebtedness. We compensate for these
limitations by relying primarily on our IFRS results using such
measures only as supplements to such results. See the financial
tables below for a reconciliation of net income (loss) to Adjusted
EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. Driven by a purpose to build
better lives and a greener future, Algoma is positioned to deliver
responsive, customer-driven product solutions to applications in
the automotive, construction, energy, defense, and manufacturing
sectors. Algoma is a key supplier of steel products to customers in
North America and is the only producer of discrete plate products
in Canada. Its state-of-the-art Direct Strip Production Complex
(“DSPC”) is one of the lowest-cost producers of hot rolled sheet
steel (HRC) in North America.
Algoma is on a transformation journey,
modernizing its plate mill and adopting electric arc technology
that builds on the strong principles of recycling and environmental
stewardship to significantly lower carbon emissions. Today Algoma
is investing in its people and processes, working safely, as a team
to become one of North America's leading producers of green
steel.
As a founding industry in their community,
Algoma is drawing on the best of its rich steelmaking tradition to
deliver greater value, offering North America the comfort of a
secure steel supply and a sustainable future as your partner in
steel.
|
|
|
|
Algoma Steel Group Inc.Condensed Interim Consolidated
Statements of Net (Loss) Income
(Unaudited) |
|
|
|
Three months ended September 30, |
|
Six months ended September 30, |
|
|
2024 |
2023 |
|
2024 |
2023 |
|
expressed in millions of Canadian dollars, except for per share
amounts |
|
|
|
|
|
|
Revenue |
$600.3 |
|
$732.6 |
|
|
$1,250.8 |
|
$1,559.8 |
|
| |
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Cost of sales |
$647.2 |
|
$664.8 |
|
|
$1,281.0 |
|
$1,304.3 |
|
|
Administrative and selling expenses |
36.7 |
|
31.0 |
|
|
65.9 |
|
54.4 |
|
|
(Loss) income from operations |
($83.6 |
) |
$36.8 |
|
|
($96.1 |
) |
$201.1 |
|
| |
|
|
|
|
|
|
Other (income) and expenses |
|
|
|
|
|
|
Finance income |
($7.0 |
) |
($3.1 |
) |
|
($12.4 |
) |
($6.4 |
) |
|
Finance costs |
19.2 |
|
5.4 |
|
|
35.6 |
|
10.5 |
|
|
Interest on pension and other post-employment benefit
obligations |
5.3 |
|
4.8 |
|
|
10.7 |
|
9.6 |
|
|
Foreign exchange loss (gain) |
9.6 |
|
(11.6 |
) |
|
2.8 |
|
(0.6 |
) |
|
Other income |
(32.1 |
) |
- |
|
|
(32.1 |
) |
- |
|
|
Change in fair value of warrant liability |
27.3 |
|
0.3 |
|
|
11.7 |
|
(17.2 |
) |
|
Change in fair value of earnout liability |
5.4 |
|
(0.7 |
) |
|
2.9 |
|
(2.7 |
) |
|
Change in fair value of share-based compensation liability |
12.5 |
|
(1.3 |
) |
|
6.7 |
|
(5.3 |
) |
| |
$40.2 |
|
($6.2 |
) |
|
$25.9 |
|
($12.1 |
) |
|
(Loss) income before income taxes |
($123.8 |
) |
$43.0 |
|
|
($122.0 |
) |
$213.2 |
|
|
Income tax (recovery) expense |
(17.2 |
) |
11.9 |
|
|
(21.5 |
) |
51.2 |
|
| Net
(loss) income |
($106.6 |
) |
$31.1 |
|
|
($100.5 |
) |
$162.0 |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| Net
(loss) income per common share |
|
|
|
|
|
|
Basic |
($0.98 |
) |
$0.29 |
|
|
($0.93 |
) |
$1.49 |
|
|
Diluted |
($0.98 |
) |
$0.24 |
|
|
($0.93 |
) |
$1.09 |
|
|
|
|
|
|
|
|
|
Algoma Steel Group Inc. Condensed Interim Consolidated
Statements of Financial Position
(Unaudited) |
|
As at, |
September 30, 2024 |
March 31, 2024 |
|
expressed in millions of Canadian dollars |
|
|
|
Assets |
|
|
|
Current |
|
|
|
Cash |
$452.0 |
|
$97.9 |
|
|
Restricted cash |
0.1 |
|
3.9 |
|
|
Taxes receivable |
36.1 |
|
20.0 |
|
|
Accounts receivable, net |
253.7 |
|
246.7 |
|
|
Inventories, net |
792.6 |
|
807.8 |
|
|
Prepaid expenses and deposits |
52.2 |
|
80.5 |
|
|
Other assets |
5.2 |
|
5.7 |
|
|
Total current assets |
$1,591.9 |
|
$1,262.5 |
|
|
Non-current |
|
|
|
Property, plant and equipment, net |
$1,496.0 |
|
$1,405.2 |
|
|
Intangible assets, net |
0.6 |
|
0.7 |
|
|
Other assets |
7.4 |
|
7.6 |
|
|
Total non-current assets |
$1,504.0 |
|
$1,413.5 |
|
|
Total assets |
$3,095.9 |
|
$2,676.0 |
|
|
Liabilities and Shareholders' Equity |
|
|
|
Current |
|
|
|
Bank indebtedness |
$0.3 |
|
$0.3 |
|
|
Accounts payable and accrued liabilities |
293.2 |
|
286.8 |
|
|
Taxes payable and accrued taxes |
50.4 |
|
30.1 |
|
|
Current portion of other long-term liabilities |
3.3 |
|
1.4 |
|
|
Current portion of governmental loans |
23.8 |
|
16.2 |
|
|
Current portion of environmental liabilities |
2.7 |
|
3.1 |
|
|
Warrant liability |
56.3 |
|
44.9 |
|
|
Earnout liability |
12.3 |
|
13.8 |
|
|
Share-based payment compensation liability |
38.5 |
|
31.9 |
|
|
Total current liabilities |
$480.8 |
|
$428.5 |
|
|
Non-current |
|
|
|
Senior secured lien notes |
$463.5 |
|
$0.0 |
|
|
Long-term governmental loans |
130.2 |
|
127.4 |
|
|
Accrued pension liability |
216.4 |
|
238.0 |
|
|
Accrued other post-employment benefit obligation |
235.6 |
|
229.5 |
|
|
Other long-term liabilities |
16.0 |
|
17.0 |
|
|
Environmental liabilities |
38.4 |
|
35.2 |
|
|
Deferred income tax liabilities |
101.2 |
|
98.0 |
|
|
Total non-current liabilities |
$1,201.3 |
|
$745.1 |
|
|
Total liabilities |
$1,682.1 |
|
$1,173.6 |
|
|
Shareholders' equity |
|
|
|
Capital stock |
$968.5 |
|
$963.9 |
|
|
Accumulated other comprehensive income |
279.7 |
|
267.1 |
|
|
Retained earnings |
173.6 |
|
288.4 |
|
|
Contributed deficit |
(8.0 |
) |
(17.0 |
) |
|
Total shareholders' equity |
$1,413.8 |
|
$1,502.4 |
|
|
Total liabilities and shareholders' equity |
$3,095.9 |
|
$2,676.0 |
|
|
|
|
|
|
Algoma Steel Group Inc. Condensed Interim Consolidated
Statements of Cash Flows (Unaudited) |
|
|
|
|
|
Three months ended September 30, |
|
Six months ended September 30, |
| |
2024 |
2023 |
|
2024 |
2023 |
|
expressed in millions of Canadian dollars |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Net (loss) income |
($106.6 |
) |
$31.1 |
|
|
($100.5 |
) |
$162.0 |
|
|
Items not affecting cash: |
|
|
|
|
|
|
Depreciation of property, plant and equipment and intangible
assets |
36.3 |
|
25.3 |
|
|
69.5 |
|
48.6 |
|
|
Deferred income tax expense (recovery) |
8.7 |
|
(3.9 |
) |
|
3.4 |
|
(10.9 |
) |
|
Pension funding (in excess of) below expense |
(2.8 |
) |
(0.3 |
) |
|
(4.7 |
) |
0.9 |
|
|
Post-employment benefit funding in excess of expense |
(2.3 |
) |
(1.5 |
) |
|
(4.0 |
) |
(3.4 |
) |
|
Unrealized foreign exchange loss (gain) on: |
|
|
|
|
|
|
accrued pension liability |
3.0 |
|
(4.3 |
) |
|
0.6 |
|
(0.2 |
) |
|
post-employment benefit obligations |
3.1 |
|
(4.9 |
) |
|
0.8 |
|
- |
|
|
Finance costs |
19.2 |
|
5.4 |
|
|
35.6 |
|
10.5 |
|
|
Loss on disposal of property, plant and equipment |
- |
|
- |
|
|
1.1 |
|
- |
|
|
Interest on pension and other post-employment benefit
obligations |
5.3 |
|
4.8 |
|
|
10.7 |
|
9.6 |
|
|
Other income |
(32.1 |
) |
- |
|
|
(32.1 |
) |
- |
|
|
Accretion of governmental loans and environmental liabilities |
6.1 |
|
3.8 |
|
|
10.0 |
|
7.4 |
|
|
Unrealized foreign exchange loss (gain) on government loan
facilities |
2.1 |
|
(3.1 |
) |
|
0.8 |
|
(0.5 |
) |
|
Increase (decrease) in fair value of warrant liability |
27.3 |
|
0.3 |
|
|
11.7 |
|
(17.2 |
) |
|
Increase (decrease) in fair value of earnout liability |
5.4 |
|
(0.7 |
) |
|
2.9 |
|
(2.7 |
) |
|
Increase (decrease) in fair value of share-based compensation
liability |
12.5 |
|
(1.3 |
) |
|
6.7 |
|
(5.3 |
) |
|
Other |
8.7 |
|
2.1 |
|
|
9.9 |
|
3.6 |
|
|
|
($6.1 |
) |
$52.8 |
|
|
$22.4 |
|
$202.4 |
|
|
Net change in non-cash operating working capital |
31.9 |
|
6.6 |
|
|
16.1 |
|
21.5 |
|
|
Environmental liabilities paid |
(0.3 |
) |
(2.2 |
) |
|
(0.5 |
) |
(2.8 |
) |
|
Cash generated by operating activities |
$25.5 |
|
$57.2 |
|
|
$38.0 |
|
$221.1 |
|
|
Investing activities |
|
|
|
|
|
|
Acquisition of property, plant and equipment |
($89.4 |
) |
($154.6 |
) |
|
($187.7 |
) |
($273.2 |
) |
|
Insurance proceeds for property damage |
27.9 |
|
- |
|
|
27.9 |
|
- |
|
|
Cash used in investing activities |
($61.5 |
) |
($154.6 |
) |
|
($159.8 |
) |
($273.2 |
) |
|
Financing activities |
|
|
|
|
|
|
Bank indebtedness repaid, net |
$0.0 |
|
($1.0 |
) |
|
$0.0 |
|
($1.7 |
) |
|
Transaction costs on bank indebtedness |
- |
|
(0.7 |
) |
|
- |
|
(1.7 |
) |
|
Restricted cash |
3.8 |
|
- |
|
|
3.8 |
|
- |
|
|
Senior secured lien notes issued |
- |
|
- |
|
|
472.6 |
|
- |
|
|
Transaction costs on senior secured lien notes |
- |
|
- |
|
|
(4.1 |
) |
- |
|
|
Governmental loans received |
12.9 |
|
23.8 |
|
|
27.4 |
|
42.3 |
|
|
Repayment of governmental loans |
(2.5 |
) |
(2.5 |
) |
|
(5.0 |
) |
(5.0 |
) |
|
Interest paid |
- |
|
(0.1 |
) |
|
(0.1 |
) |
(0.2 |
) |
|
Dividends paid |
(14.2 |
) |
(13.9 |
) |
|
(14.2 |
) |
(13.9 |
) |
|
Other |
0.9 |
|
(0.3 |
) |
|
0.4 |
|
(0.3 |
) |
|
Cash generated by financing activities |
$0.9 |
|
$5.3 |
|
|
$480.8 |
|
$19.5 |
|
|
Effect of exchange rate changes on cash |
($6.3 |
) |
$5.1 |
|
|
($4.9 |
) |
($1.2 |
) |
|
Cash |
|
|
|
|
|
|
(Decrease) increase in cash |
(41.4 |
) |
(87.0 |
) |
|
354.1 |
|
(33.8 |
) |
|
Opening balance |
493.4 |
|
300.6 |
|
|
97.9 |
|
247.4 |
|
|
Ending balance |
$452.0 |
|
$213.6 |
|
|
$452.0 |
|
$213.6 |
|
|
|
|
|
|
|
|
|
Algoma Steel Group Inc. Reconciliation of Net (Loss) Income
to Adjusted EBITDA |
|
|
|
|
|
|
|
Three months ended September 30, |
|
Six months ended September 30, |
|
millions of dollars |
2024 |
2023 |
|
2024 |
2023 |
|
Net (loss) income |
($106.6 |
) |
$31.1 |
|
|
($100.5 |
) |
$162.0 |
|
|
|
|
|
|
|
|
|
Depreciation of property, plant and equipment and amortization of
intangible assets |
36.3 |
|
25.3 |
|
|
69.5 |
|
48.6 |
|
|
Finance costs |
19.2 |
|
5.4 |
|
|
35.6 |
|
10.5 |
|
|
Interest on pension and other post-employment benefit
obligations |
5.3 |
|
4.8 |
|
|
10.7 |
|
9.6 |
|
|
Income taxes |
(17.2 |
) |
11.9 |
|
|
(21.5 |
) |
51.2 |
|
|
Foreign exchange loss (gain) |
9.6 |
|
(11.6 |
) |
|
2.8 |
|
(0.6 |
) |
|
Finance income |
(7.0 |
) |
(3.1 |
) |
|
(12.4 |
) |
(6.4 |
) |
|
Inventory write-downs(depreciation on property, plant and equipment
in inventory) |
(1.7 |
) |
4.3 |
|
|
4.7 |
|
4.7 |
|
|
Carbon tax |
12.5 |
|
12.2 |
|
|
22.0 |
|
14.7 |
|
|
Increase (decrease) in fair value of warrant liability |
27.3 |
|
0.3 |
|
|
11.7 |
|
(17.2 |
) |
|
Increase (decrease) in fair value of earnout liability |
5.4 |
|
(0.7 |
) |
|
2.9 |
|
(2.7 |
) |
|
Increase (decrease) in fair value of share-based payment
compensation liability |
12.5 |
|
(1.3 |
) |
|
6.7 |
|
(5.3 |
) |
|
Share-based compensation |
7.9 |
|
2.4 |
|
|
9.0 |
|
3.0 |
|
|
Adjusted EBITDA (i) |
$3.5 |
|
$81.0 |
|
|
$41.2 |
|
$272.1 |
|
|
Net (loss) income Margin |
(17.8 |
%) |
4.2 |
% |
|
(8.0 |
%) |
10.4 |
% |
|
Net (loss) income / ton |
($204.8 |
) |
$56.6 |
|
|
($98.2 |
) |
$144.8 |
|
|
Adjusted EBITDA Margin (ii) |
0.6 |
% |
11.1 |
% |
|
3.3 |
% |
17.4 |
% |
|
Adjusted EBITDA / ton |
$6.7 |
|
$147.5 |
|
|
$40.3 |
|
$243.3 |
|
|
|
|
|
|
|
|
| (i) See "Non-IFRS
Financial Measures" in this Press Release for information regarding
the limitations of using Adjusted EBITDA. |
| (ii) Adjusted EBITDA
Margin is Adjusted EBITDA as a percentage of revenue. |
| |
For more information, please contact:
Michael MoracaVice President – Corporate
Development and TreasurerAlgoma Steel Group Inc.
Phone: 705.945.3300E-mail: IR@algoma.com
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