8-K
STEEL DYNAMICS INC (STLD)
UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
WASHINGTON, DC
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) ofthe Securities Exchange Act of 1934
Date of Report (date of earliest event reported) October 20, 2022 (October 19, 2022 )
STEEL
DYNAMICS, INC.
(Exact name of registrant as specified in its charter)
| Indiana | 0-21719 | 35-1929476 |
|---|---|---|
| (State<br> or other jurisdiction<br> of incorporation) | (Commission<br> File Number) | (IRS<br> Employer<br><br> Identification No.) |
7575West Jefferson Blvd**, Fort Wayne** , Indiana
46804
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including
area code: 260-969-3500
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written<br> communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ¨ | Soliciting<br> material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| --- | --- |
| ¨ | Pre-commencement<br> communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered |
|---|---|---|
| Common<br> Stock voting, $0.0025 par value | STLD | NASDAQ<br> Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02. Results of Operations and FinancialCondition
On October 19, 2022, Steel Dynamics, Inc. issued a press release titled “Steel Dynamics Reports Third Quarter 2022 Results.” A copy of that press release is attached hereto as Exhibit 99.1.
The information contained in Exhibit 99.1 is furnished under this Item 2.02 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or incorporated by reference in any filing thereunder or under the Securities Act of 1933, as amended, except as may be expressly set forth by specific reference in any such filing.
Item 9.01. Financial Statements and Exhibits
(d ) Exhibits.
The following exhibit is furnished with this report:
| Exhibit Number | Description |
|---|---|
| 99.1 | A press release dated October 19, 2022, titled “Steel Dynamics Reports Third Quarter 2022 Results.” |
| 104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File<br>because its XBRL tags are embedded within the Inline XBRL document. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereto duly authorized.
| STEEL DYNAMICS, INC. | ||
|---|---|---|
| /s/ Theresa E.<br> Wagler | ||
| Date: October 20, 2022 | By: | Theresa E. Wagler |
| Title: | Executive Vice President and Chief Financial Officer |
Exhibit 99.1
| Press Release<br><br><br><br>October 19, 2022 |  |
|---|---|
| 7575 W. Jefferson Blvd. | |
| Fort Wayne, IN 46804 |
Steel Dynamics Reports Third Quarter 2022 Results
FORT WAYNE, INDIANA, October 19, 2022 / PRNewswire /
Third Quarter 2022 Performance Highlights:
| § | Record<br> steel shipments of 3.2 million tons |
|---|---|
| § | Record<br> steel fabrication operating income of $677 million and record shipments of 218,000 tons |
| --- | --- |
| § | Net<br> sales of $5.7 billion, operating income of $1.2 billion, and Adjusted EBITDA of $1.3 billion |
| --- | --- |
| § | Record<br> cash flow from operations of $1.5 billion |
| --- | --- |
| § | Share<br> repurchases of $482 million of the company’s common stock, representing 3.3 percent<br> of its outstanding shares |
| --- | --- |
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter 2022 financial results. The company reported third quarter 2022 net sales of $5.7 billion and net income of $914 million, or $5.03 per diluted share. Excluding the impact from the company’s newly started Sinton Texas Flat Roll Steel Mill of $111 million, or $0.43 per diluted share, the company’s third quarter 2022 adjusted net income was $992 million, or $5.46 per diluted share.
Comparatively, the company’s sequential second quarter 2022 earnings were $6.44 per diluted share, and adjusted earnings were $6.73 per diluted share, excluding costs of $0.29 per diluted share, associated with startup of the company's Texas Flat Roll Steel Mill. Prior year third quarter earnings were $4.85 per diluted share and adjusted earnings were $4.96 per diluted share, excluding costs of $0.11 per diluted share, associated with construction of the company's Texas Flat Roll Steel Mill.
“The team delivered a strong performance during the quarter,” said Mark D. Millett, Chairman, President, and Chief Executive Officer. “Our third quarter 2022 consolidated operating income was $1.2 billion, with adjusted EBITDA of $1.3 billion and record cash flow from operations of $1.5 billion. These results continue to display the power of our highly diversified, value-added, circular manufacturing model — as the strength in our steel fabrication operations meaningfully offset lower earnings in our flat rolled steel businesses, with realized flat rolled steel selling values declining almost 15 percent during the quarter. We achieved record quarterly steel shipments of 3.2 million tons, as a result of steady steel demand, led by the construction industry, and complemented by the automotive, industrial, and energy sectors.
“Third quarter operating income from our steel operations declined to $658 million despite record volume, due to significant metal spread compression within our flat rolled operations, while our long product metal spreads were steady to expanding,” continued Millett. “Ferrous scrap pricing indices have decreased each month beginning in May and continued through October 2022, resulting in significantly lower earnings from our metals recycling operations. In contrast, our steel fabrication business achieved another record quarter, with earnings of $677 million, based on higher realized selling values, declining steel input costs, and a continued steady construction demand environment. Steel joist and deck pricing and order entry continues to be steady, supporting a historically strong order backlog and forward pricing outlook.”
Third Quarter 2022 Comments
Third quarter 2022 operating income for the company’s steel operations was $658 million, or 41 percent lower than sequential second quarter results, due to metal spread compression within the company’s flat rolled steel operations, as lower average flat rolled steel pricing more than offset higher flat rolled steel shipments. Demand for the company’s long product steel continued to be strong, supporting steady to expanded metal margins. Third quarter 2022 average external product selling price for the company’s steel operations decreased $158 sequentially to $1,381 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills decreased $66 sequentially to $472 per ton.
Third quarter 2022 operating income from the company’s metals recycling operations meaningfully declined sequentially to $10 million, as a result of lower sequential ferrous and non-ferrous scrap pricing and lower volume. The company’s realized average ferrous scrap pricing declined almost 30 percent during the third quarter. The company believes scrap prices have stabilized for the remainder of the year.
The company’s steel fabrication operations reported record operating income of $677 million in the third quarter 2022, 13% higher than second quarter results, due to higher selling values, lower steel input costs, and record shipments. The non-residential construction sector remains strong, as evidenced by realized product pricing and the company’s order backlog extending well into the first half of 2023.
Year-to-Date September 30, 2022 Comparison
For the nine months ended September 30, 2022, net income was $3.2 billion, or $17.21 per diluted share, with net sales of $17.4 billion, as compared to net income of $2.1 billion, or $10.15 per diluted share, with net sales of $13.1 billion for the same prior year period. Excluding the impact from the company’s newly started Sinton Texas Flat Roll Steel Mill of $271 million, or $1.01 per diluted share (net of capitalized interest), the company’s nine-months ended September 30, 2022, adjusted net income was $3.4 billion, or $18.22 per diluted share. Similarly, adjusting for the company’s Texas steel mill construction and startup costs for the same period in 2021, net income was $2.2 billion, or $10.40 per diluted share.
Net sales for the first nine months of 2022 increased 33 percent and operating income increased 51 percent to $4.3 billion, when compared to the same prior year period. Higher earnings were driven by metal spread expansion within the company’s steel fabrication business, as increased product pricing and record volume, more than offset increased raw materials costs, resulting in operating income of $1.7 billion for the first nine months of 2022. Operating income from the company’s steel operations for the same period was $2.9 billion. The average external selling price for the company’s steel operations increased $198 to $1,491 per ton compared to prior year’s same period, and the average ferrous scrap cost per ton melted at the company’s steel mills increased $62 to $495 per ton.
Based on the company’s differentiated business model and highly, variable cost structure, the company achieved cash flow from operations of $3.3 billion during the first nine months of 2022, representing a record performance. The company also invested $565 million in capital investments, paid cash dividends of $177 million, and repurchased $1.4 billion of its common stock representing 10 percent of its outstanding shares, while increasing liquidity to a record $3.2 billion.
Outlook
“Customer order entry activity continues to be healthy across our businesses, with expectations for seasonally moderated volume for our steel and metals recycling operations in the coming months,” said Millett. “Despite weaker flat rolled steel pricing, our order activity and backlogs remain solid. We believe North American steel consumption will remain steady, and that demand for lower-carbon, U.S. produced steel products coupled with lower imports will support steel pricing. Our steel fabrication operations order backlog also remains historically high based on volume and forward pricing levels. This, in combination with our existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years.
“Operations continue to ramp up at our Sinton Flat Roll Steel Division. The product surface quality is excellent, and grade development and dimensional tolerances have exceeded our expectations. The Sinton team has been running at a rate of 65 percent during October and achieving rates of over 80 percent for several single day periods, supporting our expectations to achieve a run rate of at least 80 percent for the full year 2023. In addition, our four additional value-added flat rolled steel coating lines comprised of two paint lines and two galvanizing lines with Galvalume® coating capability, are expected to begin operating in the second half of 2023. One set will be located onsite at Sinton, providing it with the same diversification and higher-margin product capabilities as our two existing flat rolled steel divisions. The other two lines will be placed at our Heartland Flat Roll Division to support growing coated flat rolled steel demand in the region and to further increase the diversification and cash generation capacity of our existing Midwest operations.
“We are quickly progressing on our aluminum flat rolled products mill and are incredibly excited about this meaningful growth opportunity, which is aligned with our existing business and operational expertise,” said Millett. “We have intentionally grown with our customers’ needs, providing efficient sustainable supply-chain solutions for the highest quality products. Thus far, this has primarily been achieved within the carbon steel industry — however, a significant number of our carbon flat rolled steel customers are also consumers and processors of aluminum flat rolled products. We are pleased to further diversify our end markets with plans to supply aluminum flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors. We believe our unique performance-based operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective, highly profitable flat rolled steel mills, positions us exceptionally well to execute this strategic opportunity and to deliver strong long-term value creation.
“Our customers and our people are also incredibly excited for this growth opportunity. Our commitment is to the health and safety of our teams, families, and communities, while meeting the growing needs of our customers. Our culture and business model continue to positively differentiate our performance compared to others. We believe there are strong drivers for our continued growth, and we remain in a position of strength. Our planned investments in a new state-of-the-art low-carbon aluminum flat rolled mill and associated recycled aluminum slab centers continues our strategic growth, is aligned with our core steelmaking and recycling platforms, benefits many of our existing customers, and provides for future value creation. We are well-positioned for sustainable long-term growth,” concluded Millett.
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss third quarter 2022 operating and financial results on Thursday, October 20, 2022, at 11:30 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 26, 2022.
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 report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel, aluminum, 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 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) domestic and global economic factors; (2) global steelmaking overcapacity and imports of steel and North American aluminum flat rolled supply deficit, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues, such as the COVID-19 pandemic; (4) the cyclical nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes, and our potential inability to pass higher costs on to our customers; (6)cost and availability of electricity, natural gas, oil, or other energy resources are subject to volatile market conditions; (7) increased environmental, greenhouse gas emissions and sustainability considerations or regulations; (8)compliance with and changes in environmental and remediation requirements; (9)significant price and other forms of competition from other steel and aluminum producers, scrap processors and alternative materials; (10)availability of an adequate source of supply of scrap for our metals recycling operations; (11)cybersecurity threats and risks to the security of our sensitive data and information technology; (12) the implementation of our growth strategy; (13) litigation and legal compliance; (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and permits; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; (17) the impacts of impairment charges; (18) unanticipated difficulties in integrating or starting up new assets; and (19) risks and uncertainties involving product and/or technology development.
More specifically, refer 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 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”.
Contact: Investor Relations — +1.260.969.3500
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 | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | June 30, 2022 | |||||||||||
| Net sales | $ | 5,651,707 | $ | 5,088,288 | $ | 17,434,487 | $ | 13,098,193 | $ | 6,212,878 | |||||
| Costs of goods sold | 4,187,278 | 3,487,659 | 12,304,203 | 9,497,606 | 4,329,536 | ||||||||||
| Gross profit | 1,464,429 | 1,600,629 | 5,130,284 | 3,600,587 | 1,883,342 | ||||||||||
| Selling, general and administrative expenses | 132,627 | 157,526 | 403,019 | 461,686 | 118,377 | ||||||||||
| Profit sharing | 105,122 | 113,880 | 373,333 | 244,868 | 139,742 | ||||||||||
| Amortization of intangible assets | 6,836 | 7,178 | 21,158 | 22,054 | 7,160 | ||||||||||
| Operating income | 1,219,844 | 1,322,045 | 4,332,774 | 2,871,979 | 1,618,063 | ||||||||||
| Interest expense, net of capitalized interest | 25,347 | 12,704 | 67,683 | 44,871 | 25,667 | ||||||||||
| Other expense (income), net | (13,975 | ) | 6,776 | 2,472 | 26,886 | (4,021 | ) | ||||||||
| Income before income taxes | 1,208,472 | 1,302,565 | 4,262,619 | 2,800,222 | 1,596,417 | ||||||||||
| Income tax expense | 289,997 | 302,406 | 1,022,138 | 649,105 | 381,765 | ||||||||||
| Net income | 918,475 | 1,000,159 | 3,240,481 | 2,151,117 | 1,214,652 | ||||||||||
| Net income attributable to noncontrolling interests | (4,150 | ) | (9,396 | ) | (12,671 | ) | (27,556 | ) | (5,098 | ) | |||||
| Net income attributable<br> to Steel Dynamics, Inc. | $ | 914,325 | $ | 990,763 | $ | 3,227,810 | $ | 2,123,561 | $ | 1,209,554 | |||||
| Basic<br> earnings per share attributable to Steel Dynamics, Inc. stockholders | $ | 5.07 | $ | 4.89 | $ | 17.33 | $ | 10.22 | $ | 6.49 | |||||
| Weighted average common shares outstanding | 180,264 | 202,450 | 186,288 | 207,704 | 186,442 | ||||||||||
| Diluted<br> earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive | $ | 5.03 | $ | 4.85 | $ | 17.21 | $ | 10.15 | $ | 6.44 | |||||
| Weighted average<br> common shares and share equivalents outstanding | 181,613 | 204,167 | 187,531 | 209,222 | 187,740 | ||||||||||
| Dividends declared per share | $ | 0.34 | $ | 0.26 | $ | 1.02 | $ | 0.78 | $ | 0.34 |
Steel Dynamics, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
| September 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets | ||||||
| Cash and equivalents | $ | 1,420,497 | $ | 1,243,868 | ||
| Short-term investments | 583,211 | - | ||||
| Accounts receivable, net | 2,333,994 | 1,916,434 | ||||
| Inventories | 3,376,532 | 3,531,130 | ||||
| Other current assets | 99,210 | 209,591 | ||||
| Total current assets | 7,813,444 | 6,901,023 | ||||
| Property, plant and equipment, net | 5,146,606 | 4,751,430 | ||||
| Intangible assets, net | 276,586 | 295,345 | ||||
| Goodwill | 451,594 | 453,835 | ||||
| Other assets | 359,468 | 129,601 | ||||
| Total assets | $ | 14,047,698 | $ | 12,531,234 | ||
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 1,165,147 | $ | 1,280,555 | ||
| Income taxes payable | 41,121 | 13,746 | ||||
| Accrued expenses | 902,177 | 835,894 | ||||
| Current maturities of long-term debt | 22,951 | 97,174 | ||||
| Total current liabilities | 2,131,396 | 2,227,369 | ||||
| Long-term debt | 3,012,120 | 3,008,702 | ||||
| Deferred income taxes | 856,650 | 854,905 | ||||
| Other liabilities | 112,327 | 120,087 | ||||
| Total liabilities | 6,112,493 | 6,211,063 | ||||
| Commitments and contingencies | ||||||
| Redeemable noncontrolling interests | 172,403 | 211,414 | ||||
| Equity | ||||||
| Common stock | 649 | 649 | ||||
| Treasury stock, at cost | (4,046,555 | ) | (2,674,267 | ) | ||
| Additional paid-in capital | 1,219,947 | 1,218,933 | ||||
| Retained earnings | 10,799,863 | 7,761,417 | ||||
| Accumulated other comprehensive income | (2,748 | ) | (2,091 | ) | ||
| Total Steel Dynamics, Inc. equity | 7,971,156 | 6,304,641 | ||||
| Noncontrolling interests | (208,354 | ) | (195,884 | ) | ||
| Total equity | 7,762,802 | 6,108,757 | ||||
| Total liabilities and equity | $ | 14,047,698 | $ | 12,531,234 |
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 918,475 | $ | 1,000,159 | $ | 3,240,481 | $ | 2,151,117 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 98,714 | 87,407 | 281,961 | 261,373 | ||||||||
| Equity-based compensation | 12,093 | 9,917 | 39,681 | 36,765 | ||||||||
| Deferred income taxes | 3,990 | 71,008 | 3,986 | 188,474 | ||||||||
| Other adjustments | (12,409 | ) | (781 | ) | (1,892 | ) | (2,915 | ) | ||||
| Changes in certain assets and liabilities: | ||||||||||||
| Accounts receivable | 326,731 | (321,771 | ) | (417,550 | ) | (920,877 | ) | |||||
| Inventories | 270,628 | (412,952 | ) | 154,391 | (1,052,475 | ) | ||||||
| Other assets | (15,789 | ) | (20,361 | ) | (9,274 | ) | (18,818 | ) | ||||
| Accounts payable | (264,313 | ) | 48,726 | (152,763 | ) | 472,562 | ||||||
| Income taxes receivable/payable | 8,269 | (353 | ) | 146,822 | 86,791 | |||||||
| Accrued<br> expenses | 149,766 | 169,817 | 31,132 | 278,240 | ||||||||
| Net cash provided by operating activities | 1,496,155 | 630,816 | 3,316,975 | 1,480,237 | ||||||||
| Investing activities: | ||||||||||||
| Purchases of property, plant and equipment | (241,229 | ) | (214,629 | ) | (564,701 | ) | (801,698 | ) | ||||
| Purchases of short-term investments | (283,188 | ) | - | (634,698 | ) | - | ||||||
| Proceeds from maturities of short-term investments | 49,794 | - | 49,794 | - | ||||||||
| Acquisition of business, net of cash and restricted cash acquired | (47,638 | ) | - | (47,638 | ) | - | ||||||
| Investments in unconsolidated affiliates | - | - | (222,480 | ) | - | |||||||
| Other investing activities | 4,113 | 1,024 | 9,340 | 3,273 | ||||||||
| Net cash used in investing activities | (518,148 | ) | (213,605 | ) | (1,410,383 | ) | (798,425 | ) | ||||
| Financing activities: | ||||||||||||
| Issuance of current and long-term debt | 348,286 | 343,007 | 1,050,933 | 1,059,912 | ||||||||
| Repayment of current and long-term debt | (363,060 | ) | (382,489 | ) | (1,127,051 | ) | (1,095,338 | ) | ||||
| Dividends paid | (62,088 | ) | (53,380 | ) | (177,131 | ) | (161,025 | ) | ||||
| Purchase of treasury stock | (481,676 | ) | (337,616 | ) | (1,387,890 | ) | (730,814 | ) | ||||
| Other financing activities | (6,057 | ) | (4,776 | ) | (88,825 | ) | (27,468 | ) | ||||
| Net cash used in financing<br> activities | (564,595 | ) | (435,254 | ) | (1,729,964 | ) | (954,733 | ) | ||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 413,412 | (18,043 | ) | 176,628 | (272,921 | ) | ||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,012,585 | 1,119,244 | 1,249,369 | 1,374,122 | ||||||||
| Cash, cash equivalents, and restricted cash<br> at end of period | $ | 1,425,997 | $ | 1,101,201 | $ | 1,425,997 | $ | 1,101,201 | ||||
| Supplemental disclosure information: | ||||||||||||
| Cash paid for interest | $ | 9,214 | $ | 9,174 | $ | 59,496 | $ | 62,216 | ||||
| Cash paid for income taxes, net | $ | 276,948 | $ | 222,691 | $ | 867,350 | $ | 370,835 |
Steel Dynamics, Inc.
SUPPLEMENTAL INFORMATION
(dollars in thousands)
| Third Quarter | Year to Date | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 1Q 2022 | 2Q 2022 | |||||||||||||
| External Net Sales | ||||||||||||||||||
| Steel | $ | 3,720,826 | $ | 3,667,718 | $ | 11,625,343 | $ | 9,412,921 | $ | 3,762,496 | $ | 4,142,021 | ||||||
| Steel Fabrication | 1,140,273 | 493,804 | 3,156,007 | 1,081,641 | 929,981 | 1,085,753 | ||||||||||||
| Metals Recycling | 472,065 | 587,091 | 1,701,426 | 1,632,798 | 579,625 | 649,736 | ||||||||||||
| Other | 318,543 | 339,675 | 951,711 | 970,833 | 297,800 | 335,368 | ||||||||||||
| Consolidated Net Sales | $ | 5,651,707 | $ | 5,088,288 | $ | 17,434,487 | $ | 13,098,193 | $ | 5,569,902 | $ | 6,212,878 | ||||||
| Operating Income | ||||||||||||||||||
| Steel | $ | 658,264 | $ | 1,350,736 | $ | 2,931,868 | $ | 3,009,199 | $ | 1,166,945 | $ | 1,106,659 | ||||||
| Steel Fabrication | 676,767 | 89,430 | 1,742,915 | 127,775 | 466,916 | 599,232 | ||||||||||||
| Metals Recycling | 9,918 | 46,985 | 115,693 | 151,883 | 48,146 | 57,629 | ||||||||||||
| 1,344,949 | 1,487,151 | 4,790,476 | 3,288,857 | 1,682,007 | 1,763,520 | |||||||||||||
| Non-cash amortization of intangible assets | (6,836 | ) | (7,178 | ) | (21,158 | ) | (22,054 | ) | (7,162 | ) | (7,160 | ) | ||||||
| Profit sharing expense | (105,122 | ) | (113,880 | ) | (373,333 | ) | (244,868 | ) | (128,469 | ) | (139,742 | ) | ||||||
| Non-segment operations | (13,147 | ) | (44,048 | ) | (63,211 | ) | (149,956 | ) | (51,509 | ) | 1,445 | |||||||
| Consolidated Operating Income | $ | 1,219,844 | $ | 1,322,045 | $ | 4,332,774 | $ | 2,871,979 | $ | 1,494,867 | $ | 1,618,063 | ||||||
| Adjusted EBITDA | ||||||||||||||||||
| Net income | $ | 918,475 | $ | 1,000,159 | $ | 3,240,481 | $ | 2,151,117 | $ | 1,107,354 | $ | 1,214,652 | ||||||
| Income taxes | 289,997 | 302,406 | 1,022,138 | 649,105 | 350,376 | 381,765 | ||||||||||||
| Net interest expense | 16,902 | 12,434 | 57,116 | 43,853 | 16,055 | 24,159 | ||||||||||||
| Depreciation | 90,278 | 78,631 | 256,011 | 234,534 | 78,790 | 86,943 | ||||||||||||
| Amortization of intangible assets | 6,836 | 7,178 | 21,158 | 22,054 | 7,162 | 7,160 | ||||||||||||
| Noncontrolling interest (a) | (4,806 | ) | (9,928 | ) | (13,534 | ) | (28,015 | ) | (3,272 | ) | (5,456 | ) | ||||||
| EBITDA | 1,317,682 | 1,390,880 | 4,583,370 | 3,072,648 | 1,556,465 | 1,709,223 | ||||||||||||
| Non-cash adjustments | ||||||||||||||||||
| Unrealized (gains) losses | 6,053 | 6,355 | (7,648 | ) | 808 | 300 | (14,001 | ) | ||||||||||
| Inventory valuation | 7,696 | 141 | 28,149 | 394 | 11,125 | 9,328 | ||||||||||||
| Equity-based<br> compensation | 14,518 | 9,917 | 39,794 | 29,935 | 19,794 | 5,482 | ||||||||||||
| Adjusted EBITDA | $ | 1,345,949 | $ | 1,407,293 | $ | 4,643,665 | $ | 3,103,785 | $ | 1,587,684 | $ | 1,710,032 | ||||||
| Other Operating Information | ||||||||||||||||||
| Steel | ||||||||||||||||||
| Average external sales price (Per ton) (b) | $ | 1,381 | $ | 1,550 | $ | 1,491 | $ | 1,293 | $ | 1,561 | $ | 1,539 | ||||||
| Average ferrous cost<br> (Per ton melted) (c) | $ | 472 | $ | 489 | $ | 495 | $ | 433 | $ | 474 | $ | 538 | ||||||
| Flat Roll shipments | ||||||||||||||||||
| Butler, Columbus, and Sinton Flat Roll divisions | 1,766,726 | 1,442,783 | 5,009,403 | 4,451,844 | 1,551,845 | 1,690,832 | ||||||||||||
| Steel<br> Processing divisions (d) | 425,304 | 415,254 | 1,269,658 | 1,248,700 | 411,653 | 432,701 | ||||||||||||
| Long Product shipments | ||||||||||||||||||
| Structural and Rail Division | 477,305 | 497,016 | 1,457,296 | 1,472,782 | 466,821 | 513,170 | ||||||||||||
| Engineered Bar Products Division | 234,993 | 204,429 | 688,339 | 610,262 | 226,053 | 227,293 | ||||||||||||
| Roanoke Bar Division | 161,832 | 151,751 | 463,103 | 463,561 | 143,619 | 157,652 | ||||||||||||
| Steel of<br> West Virginia | 88,697 | 92,338 | 276,131 | 269,972 | 94,837 | 92,597 | ||||||||||||
| Total Shipments (Tons) | 3,154,857 | 2,803,571 | 9,163,930 | 8,517,121 | 2,894,828 | 3,114,245 | ||||||||||||
| External Shipments (Tons) (b) | 2,694,709 | 2,366,928 | 7,796,390 | 7,281,752 | 2,409,763 | 2,691,918 | ||||||||||||
| Steel Mill Production (Tons) | 2,793,463 | 2,528,480 | 8,039,107 | 7,448,733 | 2,508,184 | 2,737,460 | ||||||||||||
| Metals Recycling | ||||||||||||||||||
| Nonferrous shipments<br> (000's of pounds) | 257,710 | 271,325 | 785,381 | 818,993 | 260,890 | 266,781 | ||||||||||||
| Ferrous shipments<br> (Gross tons) | 1,320,117 | 1,371,126 | 3,944,068 | 4,167,416 | 1,265,222 | 1,358,729 | ||||||||||||
| External<br> ferrous shipments (Gross tons) | 423,184 | 475,567 | 1,298,413 | 1,433,475 | 437,228 | 438,001 | ||||||||||||
| Steel Fabrication | ||||||||||||||||||
| Average sales price (Per ton) | $ | 5,245 | $ | 2,339 | $ | 4,896 | $ | 1,855 | $ | 4,424 | $ | 5,001 | ||||||
| Shipments (Tons) | 218,441 | 211,197 | 646,685 | 584,621 | 210,237 | 218,007 | ||||||||||||
| (a) | Net of income tax expense (benefit) on noncontrolling interests. | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (b) | Represents all steel operations | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (c) | Represents ferrous cost per ton melted at our electric arc furnace<br>steel mills | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (d) | Includes Heartland, The Techs, and United Steel Supply operations | |||||||||||||||||
| --- | --- |