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 18, 2023
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 18, 2023, Steel Dynamics, Inc. issued a press release titled “Steel Dynamics Reports Third Quarter 2023 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 18, 2023, titled “Steel Dynamics Reports Third Quarter 2023 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. Wagler | ||
| Date: October 19, 2023 | By: | Theresa E. Wagler |
| Title: | Executive Vice President and Chief Financial Officer |
Exhibit 99.1
| Press Release October 18, 2023 |  |
|---|---|
| 7575 W. Jefferson Blvd. | |
| Fort Wayne, IN 46804 |
Steel DynamicsReports Third Quarter 2023 Results
FORT WAYNE, INDIANA, October 18, 2023 / PRNewswire /
Third Quarter 2023 Performance Highlights:
| § | Steel<br> shipments of 3.1 million tons |
|---|---|
| § | Net<br> sales of $4.6 billion, operating income of $734 million, net income of $577 million, and<br> adjusted EBITDA of $876 million |
| --- | --- |
| § | Strong<br> cash flow from operations of $1.1 billion and record liquidity of $3.7 billion |
| --- | --- |
| § | Share<br> repurchases of $331 million of the company’s common stock, representing 1.8 percent<br> of its outstanding shares |
| --- | --- |
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced third quarter 2023 financial results. The company reported third quarter 2023 net sales of $4.6 billion and net income of $577 million, or $3.47 per diluted share.
Comparatively, the company’s sequential second quarter 2023 net income was $812 million, or $4.81 per diluted share, and prior year third quarter net income was $914 million, or $5.03 per diluted share.
“The teams executed well and delivered a solid third quarter performance across our operating platforms,” said Mark D. Millett, Chairman and Chief Executive Officer. “Our third quarter 2023 operating income was $734 million, with adjusted EBITDA of $876 million. The sequential decline in earnings was the result of lower realized flat rolled steel and steel fabrication pricing. The strength of our cash generation was once again demonstrated with cash flow from operations of $1.1 billion. We achieved record liquidity of $3.7 billion, while at the same time continuing to invest in our growth and providing strong shareholder distributions.
“Customer order activity and steel demand were steady during the third quarter, with our steel shipments remaining consistent excluding the lost volume from Sinton’s unplanned July outage of approximately 90,000 tons. The caster shear issues were successfully addressed, and we expect the team to reach about 65 to 70 percent production utilization before the end of the year. Continuing low customer steel inventories combined with steady order activity, stabilized flat rolled steel pricing in mid-September. Recently, there have also been additional price increases related to customer concerns over potential lack of flat rolled steel availability in the fourth quarter, as backlogs have extended.”
Third Quarter 2023 Comments
Third quarter 2023 operating income for the company’s steel operations was $474 million, representing a 33 percent sequential decline based on metal spread compression within the company’s flat rolled steel operations as steel prices decreased more than scrap costs. The third quarter 2023 average external product selling price for the company’s steel operations decreased $66 per ton sequentially to $1,191 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills decreased $39 per ton sequentially to $405 per ton.
Third quarter operating income from the company’s metals recycling operations decreased 54 percent to $19 million, as ferrous scrap shipments declined combined with metal spread compression related to lower realized ferrous and nonferrous scrap pricing. Domestic ferrous scrap demand was impacted due to numerous steel mill maintenance outages during the quarter.
The company’s steel fabrication operations achieved historically strong operating income of $330 million in the third quarter 2023, but below second quarter results, based on lower shipments and metal spread compression as lower realized selling values were combined with steady steel substrate costs. The order backlog extends through the first quarter 2024, with strong forward-pricing. In addition, the company believes that the continued onshoring of manufacturing, coupled with the robust U.S. infrastructure and Inflation Reduction Act programs, combined with industrial construction, supports strong demand in the coming years.
Based on the company’s differentiated business model and highly variable cost structure, the company generated cash flow from operations of $1.1 billion during the third quarter 2023. The company also invested $558 million in capital investments, paid cash dividends of $71 million, and repurchased $331 million of its outstanding common stock, representing 1.8 percent of its outstanding shares, while achieving record liquidity of $3.7 billion as of September 30, 2023.
Year-to-Date September 30, 2023Comparison
For the nine months ended September 30, 2023, net income was $2.0 billion, or $11.98 per diluted share, with net sales of $14.6 billion, as compared to net income of $3.2 billion, or $17.21 per diluted share, with net sales of $17.4 billion for the same period in 2022.
For the first nine months of 2023, net sales decreased 16 percent to $14.6 billion and operating income declined 39 percent to $2.6 billion, when compared to the same period of 2022. Lower earnings were driven by metal spread contraction within the company’s steel operations, as lower realized product pricing outpaced lower ferrous scrap costs. Operating income from the company’s steel operations for the same period was $1.5 billion, compared to $2.9 billion achieved in the first nine months of 2022. The average nine-month 2023 external selling price for the company's steel operations decreased $316 per ton to $1,175 per ton compared to the same period of 2022, and the average ferrous scrap cost per ton melted at the company’s steel mills decreased $74 per ton to $421 per ton. Operating income for the company’s steel fabrication operations was $1.3 billion for the first nine months of 2023, compared to record results of $1.7 billion achieved for the same period in 2022.
The company generated cash flow from operations of $2.7 billion during the first nine months of 2023. The company also invested $1.1 billion in capital investments, paid cash dividends of $202 million, and repurchased $1.1 billion of its outstanding common stock, representing 5.7 percent of its outstanding shares, while achieving record liquidity.
Outlook
“Based on domestic steel fundamentals, we are constructive regarding North American steel market dynamics,” said Millett. “Customer order entry activity continues to be solid across our steel operations, as demand continues to be steady and customer inventories remain at low historical levels. We believe North American steel consumption will increase in the coming years, and that demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing. The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment to be derived from public funding related to the U.S. Infrastructure, Inflation Reduction Act, and Department of Energy programs, will competitively position the domestic steel industry. We believe this will benefit all of our operating platforms, especially our steel and steel fabrication businesses.
“This environment, in combination with our ongoing expansion initiatives, are firm drivers for our continued growth. The team continues to make great progress on our aluminum flat rolled products mill and related investments. We remain incredibly excited about this meaningful growth opportunity, which is aligned with our existing businesses and operational expertise,” said Millett. “The team has placed orders for all critical equipment, and the Columbus, Mississippi rolling mill site is exceptional. 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 steel industry – however, a significant number of our 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 and packaging 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 commitment is to the health and safety of our teams, families, and communities, while meeting the current and future needs of our customers. Our culture and business model continue to positively differentiate our performance compared to others. We continue to strengthen our financial position through strong cash flow generation and the execution of our long-term strategy,” concluded Millett.
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss third quarter 2023 operating and financial results on Thursday, October 19, 2023, at 11:00 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 26, 2023.
About Steel Dynamics, Inc.
Steel Dynamics is one of the largest domestic steel producers and metals recyclers in North America, 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 FinancialMeasures
The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that the non-GAAP financial measures EBITDA and Adjusted EBITDA 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, not all companies use identical calculations for EBITDA or Adjusted EBITDA; therefore, 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, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues, such as COVID-19 or its variants; (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 supplies, 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; and (17) the impacts of impairment charges.
More specifically, we refer you to our 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 reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under “Investors – SEC Filings.”
Contact: Investor Relations — +1.260.969.3500
Steel Dynamics, Inc.
CONSOLIDATEDSTATEMENTS OF INCOME (UNAUDITED)
(in thousands,except per share data)
| Three Months Ended | Nine Months Ended | Three Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | Ended | |||||||||||||
| 2023 | 2022 | 2023 | 2022 | June 30, 2023 | |||||||||||
| Net sales | $ | 4,587,057 | $ | 5,651,707 | $ | 14,561,893 | $ | 17,434,487 | $ | 5,081,630 | |||||
| Costs of goods sold | 3,635,038 | 4,187,278 | 11,246,894 | 12,304,203 | 3,774,772 | ||||||||||
| Gross profit | 952,019 | 1,464,429 | 3,314,999 | 5,130,284 | 1,306,858 | ||||||||||
| Selling, general and administrative expenses | 145,896 | 132,627 | 431,414 | 403,019 | 141,209 | ||||||||||
| Profit sharing | 64,413 | 105,122 | 224,978 | 373,333 | 90,990 | ||||||||||
| Amortization of intangible assets | 8,160 | 6,836 | 25,962 | 21,158 | 10,924 | ||||||||||
| Operating income | 733,550 | 1,219,844 | 2,632,645 | 4,332,774 | 1,063,735 | ||||||||||
| Interest expense, net of capitalized interest | 18,415 | 25,347 | 61,689 | 67,683 | 20,767 | ||||||||||
| Other (income) expense, net | (39,464 | ) | (13,975 | ) | (105,748 | ) | 2,472 | (31,348 | ) | ||||||
| Income before income taxes | 754,599 | 1,208,472 | 2,676,704 | 4,262,619 | 1,074,316 | ||||||||||
| Income tax expense | 174,817 | 289,997 | 636,412 | 1,022,138 | 258,139 | ||||||||||
| Net income | 579,782 | 918,475 | 2,040,292 | 3,240,481 | 816,177 | ||||||||||
| Net income attributable to noncontrolling interests | (2,587 | ) | (4,150 | ) | (13,680 | ) | (12,671 | ) | (4,070 | ) | |||||
| Net income attributable to Steel Dynamics, Inc. | $ | 577,195 | $ | 914,325 | $ | 2,026,612 | $ | 3,227,810 | $ | 812,107 | |||||
| Basic earnings per<br> share attributable to Steel Dynamics, Inc. stockholders | $ | 3.49 | $ | 5.07 | $ | 12.04 | $ | 17.33 | $ | 4.83 | |||||
| Weighted average common shares outstanding | 165,170 | 180,264 | 168,259 | 186,288 | 168,009 | ||||||||||
| Diluted earnings per<br> share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive | $ | 3.47 | $ | 5.03 | $ | 11.98 | $ | 17.21 | $ | 4.81 | |||||
| Weighted average common shares and share equivalents<br> outstanding | 166,105 | 181,613 | 169,150 | 187,531 | 168,865 | ||||||||||
| Dividends declared per share | $ | 0.425 | $ | 0.34 | $ | 1.275 | $ | 1.02 | $ | 0.425 |
Steel Dynamics, Inc.
CONSOLIDATEDBALANCE SHEETS
(in thousands)
| September 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2023 | 2022 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets | ||||||
| Cash and equivalents | $ | 1,765,467 | $ | 1,628,417 | ||
| Short-term investments | 500,844 | 628,215 | ||||
| Accounts receivable, net | 1,882,049 | 2,056,051 | ||||
| Inventories | 2,941,634 | 3,129,964 | ||||
| Other current assets | 138,605 | 195,371 | ||||
| Total current assets | 7,228,599 | 7,638,018 | ||||
| Property, plant and equipment, net | 6,313,366 | 5,373,665 | ||||
| Intangible assets, net | 265,845 | 267,507 | ||||
| Goodwill | 477,471 | 502,067 | ||||
| Other assets | 643,675 | 378,727 | ||||
| Total assets | $ | 14,928,956 | $ | 14,159,984 | ||
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 1,060,175 | $ | 1,017,238 | ||
| Income taxes payable | 30,343 | 6,520 | ||||
| Accrued expenses | 741,798 | 951,204 | ||||
| Current maturities of long-term debt | 86,061 | 57,334 | ||||
| Total current liabilities | 1,918,377 | 2,032,296 | ||||
| Long-term debt | 3,009,010 | 3,013,241 | ||||
| Deferred income taxes | 961,117 | 889,103 | ||||
| Other liabilities | 182,161 | 129,539 | ||||
| Total liabilities | 6,070,665 | 6,064,179 | ||||
| Commitments and contingencies | ||||||
| Redeemable noncontrolling interests | 171,212 | 181,503 | ||||
| Equity | ||||||
| Common stock | 650 | 650 | ||||
| Treasury stock, at cost | (5,510,983 | ) | (4,459,513 | ) | ||
| Additional paid-in capital | 1,214,894 | 1,212,566 | ||||
| Retained earnings | 13,189,468 | 11,375,765 | ||||
| Accumulated other comprehensive income (loss) | (494 | ) | 889 | |||
| Total Steel Dynamics, Inc. equity | 8,893,535 | 8,130,357 | ||||
| Noncontrolling interests | (206,456 | ) | (216,055 | ) | ||
| Total equity | 8,687,079 | 7,914,302 | ||||
| Total liabilities and equity | $ | 14,928,956 | $ | 14,159,984 |
Steel Dynamics, Inc.
CONSOLIDATEDSTATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Three Months Ended | Nine Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | September 30, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 579,782 | $ | 918,475 | $ | 2,040,292 | $ | 3,240,481 | ||||
| Adjustments to reconcile net income to net cash provided by<br> operating activities: | ||||||||||||
| Depreciation and amortization | 107,418 | 98,714 | 326,082 | 281,961 | ||||||||
| Equity-based compensation | 12,044 | 12,093 | 39,800 | 39,681 | ||||||||
| Deferred income taxes | 19,625 | 3,990 | 72,013 | 3,986 | ||||||||
| Other adjustments | (12,163 | ) | (12,409 | ) | (20,628 | ) | (1,892 | ) | ||||
| Changes in certain assets and liabilities: | ||||||||||||
| Accounts receivable | 260,915 | 326,731 | 173,022 | (417,550 | ) | |||||||
| Inventories | 102,376 | 270,628 | 188,330 | 154,391 | ||||||||
| Other assets | (13,423 | ) | (15,789 | ) | (10,504 | ) | (9,274 | ) | ||||
| Accounts payable | (57,532 | ) | (264,313 | ) | (54,233 | ) | (152,763 | ) | ||||
| Income taxes receivable/payable | (7,105 | ) | 8,269 | 96,656 | 146,822 | |||||||
| Accrued expenses | 121,762 | 149,766 | (195,542 | ) | 31,132 | |||||||
| Net cash provided by operating activities | 1,113,699 | 1,496,155 | 2,655,288 | 3,316,975 | ||||||||
| Investing activities: | ||||||||||||
| Purchases of property, plant and equipment | (558,361 | ) | (241,229 | ) | (1,142,960 | ) | (564,701 | ) | ||||
| Purchases of short-term investments | (170,887 | ) | (283,188 | ) | (692,716 | ) | (634,698 | ) | ||||
| Proceeds from maturities of short-term investments | 282,592 | 49,794 | 821,668 | 49,794 | ||||||||
| Business combinations, net of cash acquired | - | (47,638 | ) | - | (47,638 | ) | ||||||
| Investments in unconsolidated affiliates | - | - | - | (222,480 | ) | |||||||
| Other investing activities | (5,891 | ) | 4,113 | (221,453 | ) | 9,340 | ||||||
| Net cash used in investing activities | (452,547 | ) | (518,148 | ) | (1,235,461 | ) | (1,410,383 | ) | ||||
| Financing activities: | ||||||||||||
| Issuance of current and long-term debt | 345,563 | 348,286 | 1,066,605 | 1,050,933 | ||||||||
| Repayment of current and long-term debt | (316,511 | ) | (363,060 | ) | (1,042,933 | ) | (1,127,051 | ) | ||||
| Dividends paid | (70,713 | ) | (62,088 | ) | (201,834 | ) | (177,131 | ) | ||||
| Purchase of treasury stock | (331,318 | ) | (481,676 | ) | (1,065,521 | ) | (1,387,890 | ) | ||||
| Other financing activities | 1,953 | (6,057 | ) | (39,075 | ) | (88,825 | ) | |||||
| Net cash used in financing activities | (371,026 | ) | (564,595 | ) | (1,282,758 | ) | (1,729,964 | ) | ||||
| Increase in cash, cash equivalents, and restricted cash | 290,126 | 413,412 | 137,069 | 176,628 | ||||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,480,862 | 1,012,585 | 1,633,919 | 1,249,369 | ||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,770,988 | $ | 1,425,997 | $ | 1,770,988 | $ | 1,425,997 | ||||
| Supplemental disclosure information: | ||||||||||||
| Cash paid for interest | $ | 9,848 | $ | 9,214 | $ | 61,225 | $ | 59,496 | ||||
| Cash paid for income taxes, net | $ | 160,178 | $ | 276,948 | $ | 472,936 | $ | 867,350 |
Steel Dynamics, Inc.
SUPPLEMENTALINFORMATION
(dollars in thousands)
| Third Quarter | Year to Date | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | 1Q 2023 | 2Q 2023 | |||||||||||||
| External Net Sales | ||||||||||||||||||
| Steel | $ | 3,136,445 | $ | 3,720,826 | $ | 9,594,775 | $ | 11,625,343 | $ | 3,060,821 | $ | 3,397,509 | ||||||
| Steel Fabrication | 630,184 | 1,140,273 | 2,278,361 | 3,156,007 | 868,768 | 779,409 | ||||||||||||
| Metals Recycling | 520,746 | 472,065 | 1,696,587 | 1,701,426 | 583,468 | 592,373 | ||||||||||||
| Other | 299,682 | 318,543 | 992,170 | 951,711 | 380,149 | 312,339 | ||||||||||||
| Consolidated Net Sales | $ | 4,587,057 | $ | 5,651,707 | $ | 14,561,893 | $ | 17,434,487 | $ | 4,893,206 | $ | 5,081,630 | ||||||
| Operating Income | ||||||||||||||||||
| Steel | $ | 473,931 | $ | 658,264 | $ | 1,525,528 | $ | 2,931,868 | $ | 345,356 | $ | 706,241 | ||||||
| Steel Fabrication | 330,061 | 676,767 | 1,343,495 | 1,742,915 | 551,313 | 462,121 | ||||||||||||
| Metals Recycling | 18,505 | 9,918 | 101,727 | 115,693 | 42,930 | 40,292 | ||||||||||||
| 822,497 | 1,344,949 | 2,970,750 | 4,790,476 | 939,599 | 1,208,654 | |||||||||||||
| Non-cash amortization of intangible assets | (8,160 | ) | (6,836 | ) | (25,962 | ) | (21,158 | ) | (6,878 | ) | (10,924 | ) | ||||||
| Profit sharing expense | (64,413 | ) | (105,122 | ) | (224,978 | ) | (373,333 | ) | (69,575 | ) | (90,990 | ) | ||||||
| Non-segment operations | (16,374 | ) | (13,147 | ) | (87,165 | ) | (63,211 | ) | (27,786 | ) | (43,005 | ) | ||||||
| Consolidated Operating Income | $ | 733,550 | $ | 1,219,844 | $ | 2,632,645 | $ | 4,332,774 | $ | 835,360 | $ | 1,063,735 | ||||||
| Adjusted EBITDA | ||||||||||||||||||
| Net income | $ | 579,782 | $ | 918,475 | $ | 2,040,292 | $ | 3,240,481 | $ | 644,333 | $ | 816,177 | ||||||
| Income taxes | 174,817 | 289,997 | 636,412 | 1,022,138 | 203,456 | 258,139 | ||||||||||||
| Net interest expense (income) | (10,350 | ) | 16,902 | (18,574 | ) | 57,116 | (3,470 | ) | (4,754 | ) | ||||||||
| Depreciation | 97,707 | 90,278 | 295,355 | 256,011 | 99,210 | 98,438 | ||||||||||||
| Amortization of intangible assets | 8,160 | 6,836 | 25,962 | 21,158 | 6,878 | 10,924 | ||||||||||||
| EBITDA | 850,116 | 1,322,488 | 2,979,447 | 4,596,904 | 950,407 | 1,178,924 | ||||||||||||
| Non-cash adjustments | ||||||||||||||||||
| Unrealized (gains) losses on derivatives and currency<br> remeasurement | 14,005 | 6,053 | (12,570 | ) | (7,648 | ) | (8,142 | ) | (18,433 | ) | ||||||||
| Equity-based compensation | 11,989 | 14,518 | 37,366 | 39,794 | 13,877 | 11,500 | ||||||||||||
| Adjusted EBITDA | $ | 876,110 | $ | 1,343,059 | $ | 3,004,243 | $ | 4,629,050 | $ | 956,142 | $ | 1,171,991 | ||||||
| Other Operating Information | ||||||||||||||||||
| Steel | ||||||||||||||||||
| Average external sales price (Per ton) (a) | $ | 1,191 | $ | 1,381 | $ | 1,175 | $ | 1,491 | $ | 1,080 | $ | 1,257 | ||||||
| Average ferrous cost (Per ton melted) (b) | $ | 405 | $ | 472 | $ | 421 | $ | 495 | $ | 413 | $ | 444 | ||||||
| Flat Roll shipments | ||||||||||||||||||
| Butler, Columbus, and Sinton | 1,740,130 | 1,766,726 | 5,484,128 | 5,009,403 | 1,893,940 | 1,850,058 | ||||||||||||
| Steel Processing divisions (c) | 452,139 | 425,304 | 1,308,221 | 1,269,658 | 435,602 | 420,480 | ||||||||||||
| Long Product shipments | ||||||||||||||||||
| Structural and Rail Division | 469,638 | 477,305 | 1,444,174 | 1,457,296 | 495,551 | 478,985 | ||||||||||||
| Engineered Bar Products Division | 201,903 | 234,993 | 649,789 | 688,339 | 231,723 | 216,163 | ||||||||||||
| Roanoke Bar Division | 142,195 | 161,832 | 447,532 | 463,103 | 157,024 | 148,313 | ||||||||||||
| Steel of West Virginia | 98,246 | 88,697 | 290,978 | 276,131 | 95,456 | 97,276 | ||||||||||||
| Total Shipments (Tons) | 3,104,251 | 3,154,857 | 9,624,822 | 9,163,930 | 3,309,296 | 3,211,275 | ||||||||||||
| External Shipments (Tons) (a) | 2,632,617 | 2,694,709 | 8,169,117 | 7,796,390 | 2,833,469 | 2,703,031 | ||||||||||||
| Steel Mill Production (Tons) | 2,782,870 | 2,793,463 | 8,620,531 | 8,039,107 | 2,939,032 | 2,898,629 | ||||||||||||
| Metals Recycling | ||||||||||||||||||
| Nonferrous shipments (000's of pounds) | 279,877 | 257,710 | 845,477 | 785,381 | 285,837 | 279,763 | ||||||||||||
| Ferrous shipments (Gross tons) | 1,442,964 | 1,320,117 | 4,415,949 | 3,944,068 | 1,452,821 | 1,520,164 | ||||||||||||
| External ferrous shipments (Gross tons) | 547,646 | 423,184 | 1,693,028 | 1,298,413 | 567,403 | 577,979 | ||||||||||||
| Steel Fabrication | ||||||||||||||||||
| Average sales price (Per ton) | $ | 3,916 | $ | 5,245 | $ | 4,452 | $ | 4,896 | $ | 5,021 | $ | 4,384 | ||||||
| Shipments (Tons) | 161,697 | 218,441 | 512,537 | 646,685 | 173,021 | 177,819 | ||||||||||||
| (a) | Represents all steel operations | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (b) | Represents ferrous cost per ton<br>melted at our electric arc furnace steel mills | |||||||||||||||||
| --- | --- | |||||||||||||||||
| (c) | Includes Heartland, The Techs,<br>and United Steel Supply operations | |||||||||||||||||
| --- | --- |