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) July 21, 2022 (July 20, 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 July 20, 2022, Steel Dynamics, Inc. issued a press release titled “Steel Dynamics Reports Record Second 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 July 20, 2022, titled “Steel Dynamics Reports Record Second 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. Wagler | ||
| Date: July 21, 2022 | By: | Theresa E. Wagler |
| Title: | Executive Vice President and Chief Financial Officer |
Exhibit99.1
| Press Release |  |
|---|---|
| July 20, 2022 | |
| 7575 W. Jefferson Blvd. | |
| Fort Wayne, IN 46804 |
SteelDynamics Reports Record Second Quarter 2022 Results
FORT WAYNE, INDIANA, July 20, 2022 / PRNewswire /
Second Quarter 2022 Performance Highlights:
| § | Record<br> steel shipments of 3.1 million tons |
|---|---|
| § | Record<br> net sales of $6.2 billion |
| --- | --- |
| § | Record<br> operating income of $1.6 billion and net income of $1.2 billion |
| --- | --- |
| § | Record<br> steel fabrication operating income of $599 million and record shipments of 218,000 tons |
| --- | --- |
| § | Record<br> cash flow from operations of $1.0 billion and record adjusted EBITDA of $1.7 billion |
| --- | --- |
| § | Repurchased<br> $517 million of the company’s common stock, representing 3.5 percent of its outstanding<br> shares |
| --- | --- |
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced second quarter 2022 financial results. The company reported record second quarter 2022 net sales of $6.2 billion and record net income of $1.2 billion, or $6.44 per diluted share. Excluding the impact from the following item, the company’s second quarter 2022 adjusted net income was $1.3 billion, or $6.73 per diluted share:
| § | Costs<br> of approximately $77 million, or $0.29 per diluted share, associated with the continued startup<br> of the company’s Sinton Texas Flat Roll Steel Mill growth investment. |
|---|
Comparatively, the company’s sequential first quarter 2022 earnings were $5.71 per diluted share, and adjusted earnings were $6.02 per diluted share excluding costs of $0.31 per diluted share (net of capitalized interest), associated with construction and startup of the company's Sinton Texas Flat Roll Steel Mill. Prior year second quarter earnings were $3.32 per diluted share and adjusted earnings were $3.40 per diluted share, excluding costs of $0.08 per diluted share (net of capitalized interest), associated with construction of the company's Texas Flat Roll Steel Mill.
“The team delivered another strong performance, achieving record quarterly operating and financial performance, including record sales, operating income, cash flow from operations, and adjusted EBITDA,” said Mark D. Millett, Chairman, President, and Chief Executive Officer. “Our second quarter 2022 operating income was $1.6 billion, with adjusted EBITDA of $1.7 billion. This tremendous accomplishment displays the power of our highly diversified, value-added, circular manufacturing model — as the strength in our steel fabrication operations more than offset lower earnings in our flat roll steel business, as realized flat roll steel selling values declined during the quarter. Despite softening hot roll coil steel pricing, we achieved record quarterly steel shipments of 3.1 million tons based on solid steel demand, led by the automotive, construction, and industrial sectors, with energy continuing to improve.
“The teams achieved strong operating and financial results across all of our operating platforms,” continued Millett. “Second quarter operating income from our steel and metals recycling operations remained very strong at $1.1 billion and $58 million, respectively. Our steel fabrication operations again achieved record results, with earnings of $599 million, based on significantly higher realized selling values and a continued strong construction demand environment. Steel joist and deck pricing and order activity continues to be robust, supporting our continued near-record order backlog with higher forward pricing.”
Second Quarter 2022 Comments
Second quarter 2022 operating income for the company’s steel operations remained historically strong at $1.1 billion. The incremental decline in earnings resulted from metal spread compression within the company’s flat roll steel operations, as lower average flat roll steel pricing more than offset higher flat roll steel shipments. Demand for the company’s long product steel also continues to be strong, supporting increased average realized pricing and shipments. The second quarter 2022 average external product selling price for the company’s steel operations decreased $22 sequentially to $1,539 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills increased $64 sequentially to $538 per ton.
Second quarter operating income from the company’s metals recycling operations increased to $58 million, above first quarter sequential results of $48 million, based on strong demand supporting increased pricing and related metal spread. Solid demand for ferrous scrap resulted in a 7 percent increase in second quarter 2022 shipments, compared to first quarter sequential results.
The company’s steel fabrication operations reported another record operating income of $599 million in the second quarter 2022, substantially above sequential first quarter results, as significantly higher selling values and strong shipments more than offset marginally higher steel input costs. The non-residential construction sector remains strong, resulting in a near-record order backlog and higher forward-pricing for the company’s steel fabrication platform. The company anticipates this momentum to continue into 2023 based on these dynamics.
Based on the company’s differentiated business model and highly variable cost structure, the company generated record cash flow from operations of $1.0 billion during the quarter. The company also invested $164 million in capital investments, paid cash dividends of $64 million, and repurchased $517 million of its outstanding common stock representing 3.5 percent of its outstanding stock, while maintaining strong liquidity of $2.5 billion as of June 30, 2022.
Year-to-Date June 30, 2022 Comparison
For the six months ended June 30, 2022, net income was $2.3 billion, or $12.14 per diluted share, with net sales of $11.8 billion, as compared to net income of $1.1 billion, or $5.35 per diluted share, with net sales of $8.0 billion for the same period in 2021. Excluding the impact from the following item, the company’s first half 2022 adjusted net income was $2.4 billion, or $12.74 per diluted share:
| § | Costs<br> of approximately $161 million, or $0.60 per diluted share (net of capitalized interest),<br> associated with construction and startup of the company’s Sinton Texas Flat Roll Steel<br> Mill growth investment. |
|---|
Similarly, adjusting for the company’s Texas steel mill construction costs, first half 2021 net income was $1.2 billion, or $5.50 per diluted share.
First half 2022 net sales increased 47 percent and operating income doubled to $3.1 billion, when compared to the same period in 2021. Higher earnings were driven by metal spread expansion within the company’s steel fabrication business and steel operations, as increased product pricing outpaced higher raw material costs. The steel fabrication platform achieved record first half 2022 operating income of $1.1 billion, materially higher than the $38 million recorded in the first half 2021. First half 2022 operating income for the company’s steel operations was $2.3 billion, an increase of $615 million compared to prior year results. The average first half 2022 external selling price for the company's steel operations increased $380 to $1,549 per ton compared prior year’s same period, and the average ferrous scrap cost per ton melted at the company’s steel mills increased $101 to $507 per ton.
Based on the company’s differentiated business model and highly, variable cost structure, the company achieved cash flow from operations of $1.8 billion in the first half 2022, representing a record first half performance. The company also invested $323 million in capital investments, paid cash dividends of $115 million, and repurchased $906 million of its common stock, while maintaining strong liquidity.
Outlook
“Customer order entry activity continues to be healthy across all of our businesses, conflicting with the more pessimistic emotion in the marketplace,” said Millett. “Despite softening flat roll steel pricing, our steel order activity remains solid from the automotive, construction, and industrial sectors, with energy continuing to improve. Our steel fabrication operations order backlog remains at near-record volumes and forward pricing levels. This combined with continued healthy order activity and broad customer optimism, supports strong overall demand dynamics for the construction industry.
“Operations continue to ramp up at our Sinton Flat Roll Steel Mill, and the team has already achieved run rates of 80 percent through the hot side. However, they have been challenged with unexpected power and equipment issues that have impacted their operating time in July. The team expects to realize meaningful improvement for the remainder of the year. We are investing approximately $500 million to build four additional value-added flat roll steel coating lines comprised of two paint lines and two galvanizing lines with Galvalume® coating capability, a set of which will be located onsite at our new Texas steel mill, providing Sinton with the same diversification and higher-margin product capabilities as our two existing flat roll steel divisions. The other two lines will be placed at our Heartland Flat Roll Division located in Terre Haute, Indiana to support growing coated flat roll steel demand in the region and to further increase the diversification and cash generation capacity of our existing Midwest operations. Based on current plans, we believe these four lines will begin operating in the second half of 2023.
“We are excited about our recent partnership with Aymium,” said Millett. “We believe this strategic joint venture will cost-effectively reduce our greenhouse gas emissions, which are already materially lower than our global steel competitors. We also believe Aymium’s process can provide a renewable carbon alternative to fossil fuel for Iron Dynamics, our proprietary ironmaking operations. We have successfully trialed Aymium’s biocarbon product in our steel operations, and conservatively estimate this first facility will reduce our Scope 1 steelmaking greenhouse gas emission intensity between 20 and 25 percent, with potential upside through the use of the facility’s biogas. Our commitment to all aspects of sustainability is embedded in our founding principles. This investment represents a significant step forward on our path to carbon neutrality, and our continued commitment to reduce our environmental footprint.”
“We believe there are strong drivers for our continued growth and remain in a position of strength. Our recently announced planned investment in a new state-of-the-art low-carbon aluminum flat rolled mill 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. Our customers and our people are 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 from the industry. We are well-positioned for sustainable long-term growth and value creation,” concluded Millett.
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss second quarter 2022 operating and financial results on Thursday, July 21, 2022, at 9:00 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 July 27, 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 FinancialMeasures
The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that Adjusted Net Income, Adjusted Diluted Earnings Per Share, EBITDA and Adjusted EBITDA, non-GAAP financial measures, provide additional meaningful information regarding the company’s performance and financial strength. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the company’s reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, Adjusted Net Income, Adjusted Diluted Earnings Per Share, EBITDA and Adjusted EBITDA included in this release may not be comparable to similarly titled measures of other companies.
Forward-Looking Statements
This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel and recycled metals marketplaces, Steel Dynamics’ revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as “anticipate”, “intend”, “believe”, “estimate”, “plan”, “seek”, “project”, or “expect”, or by the words “may”, “will”, or “should”, are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not a guarantee of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) 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 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 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 required to operate our businesses; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (17) the impact of impairment charges.
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<br> Months Ended | Six<br> Months Ended | Three<br> Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June<br> 30, | June<br> 30, | Ended | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | March<br> 31, 2022 | |||||||||||
| Net<br> sales | $ | 6,212,878 | $ | 4,465,308 | $ | 11,782,780 | $ | 8,009,905 | $ | 5,569,902 | |||||
| Costs<br> of goods sold | 4,329,536 | 3,265,616 | 8,116,925 | 6,009,947 | 3,787,389 | ||||||||||
| Gross<br> profit | 1,883,342 | 1,199,692 | 3,665,855 | 1,999,958 | 1,782,513 | ||||||||||
| Selling,<br> general and administrative expenses | 118,377 | 154,379 | 270,392 | 304,160 | 152,015 | ||||||||||
| Profit<br> sharing | 139,742 | 82,140 | 268,211 | 130,988 | 128,469 | ||||||||||
| Amortization<br> of intangible assets | 7,160 | 7,438 | 14,322 | 14,876 | 7,162 | ||||||||||
| Operating<br> income | 1,618,063 | 955,735 | 3,112,930 | 1,549,934 | 1,494,867 | ||||||||||
| Interest<br> expense, net of capitalized interest | 25,667 | 14,898 | 42,336 | 32,167 | 16,669 | ||||||||||
| Other<br> expense (income), net | (4,021 | ) | 10,039 | 16,447 | 20,110 | 20,468 | |||||||||
| Income<br> before income taxes | 1,596,417 | 930,798 | 3,054,147 | 1,497,657 | 1,457,730 | ||||||||||
| Income<br> tax expense | 381,765 | 218,595 | 732,141 | 346,699 | 350,376 | ||||||||||
| Net<br> income | 1,214,652 | 712,203 | 2,322,006 | 1,150,958 | 1,107,354 | ||||||||||
| Net<br> income attributable to noncontrolling interests | (5,098 | ) | (9,912 | ) | (8,521 | ) | (18,160 | ) | (3,423 | ) | |||||
| Net<br> income attributable to Steel Dynamics, Inc. | $ | 1,209,554 | $ | 702,291 | $ | 2,313,485 | $ | 1,132,798 | $ | 1,103,931 | |||||
| Basic<br> earnings per share attributable to Steel Dynamics, Inc. stockholders | $ | 6.49 | $ | 3.35 | $ | 12.22 | $ | 5.39 | $ | 5.74 | |||||
| Weighted<br> average common shares outstanding | 186,442 | 209,647 | 189,300 | 210,331 | 192,158 | ||||||||||
| Diluted<br> earnings per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive | $ | 6.44 | $ | 3.32 | $ | 12.14 | $ | 5.35 | $ | 5.71 | |||||
| Weighted<br> average common shares and share equivalents outstanding | 187,740 | 211,246 | 190,491 | 211,750 | 193,241 | ||||||||||
| Dividends<br> declared per share | $ | 0.34 | $ | 0.26 | $ | 0.68 | $ | 0.52 | $ | 0.34 |
Steel Dynamics,Inc.
CONSOLIDATEDBALANCE SHEETS
(in thousands)
| June 30, | December 31, | |||||
|---|---|---|---|---|---|---|
| 2022 | 2021 | |||||
| (unaudited) | ||||||
| Assets | ||||||
| Current assets | ||||||
| Cash and equivalents | $ | 1,007,085 | $ | 1,243,868 | ||
| Short-term investments | 351,005 | - | ||||
| Accounts receivable, net | 2,660,715 | 1,916,434 | ||||
| Inventories | 3,647,061 | 3,531,130 | ||||
| Other current assets | 90,144 | 209,591 | ||||
| Total current assets | 7,756,010 | 6,901,023 | ||||
| Property, plant and equipment, net | 4,886,555 | 4,751,430 | ||||
| Intangible assets, net | 281,022 | 295,345 | ||||
| Goodwill | 452,341 | 453,835 | ||||
| Other assets | 335,286 | 129,601 | ||||
| Total assets | $ | 13,711,214 | $ | 12,531,234 | ||
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 1,380,814 | $ | 1,280,555 | ||
| Income taxes payable | 36,976 | 13,746 | ||||
| Accrued expenses | 746,952 | 835,894 | ||||
| Current maturities of long-term debt | 37,130 | 97,174 | ||||
| Total current liabilities | 2,201,872 | 2,227,369 | ||||
| Long-term debt | 3,011,116 | 3,008,702 | ||||
| Deferred income taxes | 853,407 | 854,905 | ||||
| Other liabilities | 95,929 | 120,087 | ||||
| Total liabilities | 6,162,324 | 6,211,063 | ||||
| Commitments and contingencies | ||||||
| Redeemable noncontrolling interests | 168,303 | 211,414 | ||||
| Equity | ||||||
| Common stock | 649 | 649 | ||||
| Treasury stock, at cost | (3,566,493 | ) | (2,674,267 | ) | ||
| Additional paid-in capital | 1,213,481 | 1,218,933 | ||||
| Retained earnings | 9,945,710 | 7,761,417 | ||||
| Accumulated other comprehensive income | (4,999 | ) | (2,091 | ) | ||
| Total Steel Dynamics, Inc. equity | 7,588,348 | 6,304,641 | ||||
| Noncontrolling interests | (207,761 | ) | (195,884 | ) | ||
| Total equity | 7,380,587 | 6,108,757 | ||||
| Total liabilities and equity | $ | 13,711,214 | $ | 12,531,234 |
Steel Dynamics,Inc.
CONSOLIDATEDSTATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Three Months Ended | Six Months Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | June 30, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 1,214,652 | $ | 712,203 | $ | 2,322,006 | $ | 1,150,958 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
| Depreciation and amortization | 95,701 | 87,047 | 183,247 | 173,966 | ||||||||
| Equity-based compensation | 11,069 | 9,808 | 27,588 | 26,848 | ||||||||
| Deferred income taxes | (2,636 | ) | 50,722 | (4 | ) | 117,466 | ||||||
| Other adjustments | (640 | ) | (1,472 | ) | 10,517 | (2,134 | ) | |||||
| Changes in certain assets and liabilities: | ||||||||||||
| Accounts receivable | (297,047 | ) | (204,561 | ) | (744,281 | ) | (599,106 | ) | ||||
| Inventories | (130,552 | ) | (264,935 | ) | (116,237 | ) | (639,523 | ) | ||||
| Other assets | (12,887 | ) | (4,285 | ) | 6,515 | 1,543 | ||||||
| Accounts payable | 187,521 | 63,155 | 111,550 | 423,836 | ||||||||
| Income taxes receivable/payable | (203,352 | ) | 27,551 | 138,553 | 87,144 | |||||||
| Accrued expenses | 140,023 | 111,997 | (118,634 | ) | 108,423 | |||||||
| Net cash provided by operating activities | 1,001,852 | 587,230 | 1,820,820 | 849,421 | ||||||||
| Investing activities: | ||||||||||||
| Purchases of property, plant and equipment | (164,142 | ) | (277,206 | ) | (323,472 | ) | (587,069 | ) | ||||
| Purchases of short-term investments | (351,510 | ) | - | (351,510 | ) | - | ||||||
| Investments in unconsolidated affiliates | - | - | (222,480 | ) | - | |||||||
| Other investing activities | 4,817 | 1,859 | 5,227 | 2,249 | ||||||||
| Net cash used in investing activities | (510,835 | ) | (275,347 | ) | (892,235 | ) | (584,820 | ) | ||||
| Financing activities: | ||||||||||||
| Issuance of current and long-term debt | 382,868 | 419,464 | 702,647 | 716,905 | ||||||||
| Repayment of current and long-term debt | (414,719 | ) | (408,565 | ) | (763,991 | ) | (712,849 | ) | ||||
| Dividends paid | (64,344 | ) | (54,916 | ) | (115,043 | ) | (107,645 | ) | ||||
| Purchase of treasury stock | (517,024 | ) | (393,198 | ) | (906,214 | ) | (393,198 | ) | ||||
| Other financing activities | (60,241 | ) | (6,094 | ) | (82,768 | ) | (22,692 | ) | ||||
| Net cash used in financing activities | (673,460 | ) | (443,309 | ) | (1,165,369 | ) | (519,479 | ) | ||||
| Decrease in cash, cash equivalents, and restricted cash | (182,443 | ) | (131,426 | ) | (236,784 | ) | (254,878 | ) | ||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,195,028 | 1,250,670 | 1,249,369 | 1,374,122 | ||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,012,585 | $ | 1,119,244 | $ | 1,012,585 | $ | 1,119,244 | ||||
| Supplemental disclosure information: | ||||||||||||
| Cash paid for interest | $ | 41,114 | $ | 41,727 | $ | 50,282 | $ | 53,042 | ||||
| Cash paid for income taxes, net | $ | 580,454 | $ | 146,002 | $ | 590,402 | $ | 148,144 |
Steel Dynamics,Inc.
SUPPLEMENTALINFORMATION
(dollars in thousands)
| Second<br> Quarter | Year<br> to Date | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 1Q<br> 2022 | |||||||||||
| External<br> Net Sales | |||||||||||||||
| Steel | $ | 4,142,021 | $ | 3,234,519 | $ | 7,904,517 | $ | 5,745,203 | $ | 3,762,496 | |||||
| Steel<br> Fabrication | 1,085,753 | 330,852 | 2,015,734 | 587,837 | 929,981 | ||||||||||
| Metals<br> Recycling | 649,736 | 575,700 | 1,229,361 | 1,045,707 | 579,625 | ||||||||||
| Other | 335,368 | 324,237 | 633,168 | 631,158 | 297,800 | ||||||||||
| Consolidated<br> Net Sales | $ | 6,212,878 | $ | 4,465,308 | $ | 11,782,780 | $ | 8,009,905 | $ | 5,569,902 | |||||
| Operating<br> Income | |||||||||||||||
| Steel | $ | 1,106,659 | $ | 1,017,024 | $ | 2,273,604 | $ | 1,658,463 | $ | 1,166,945 | |||||
| Steel<br> Fabrication | 599,232 | 28,450 | 1,066,148 | 38,345 | 466,916 | ||||||||||
| Metals<br> Recycling | 57,629 | 50,965 | 105,775 | 104,898 | 48,146 | ||||||||||
| 1,763,520 | 1,096,439 | 3,445,527 | 1,801,706 | 1,682,007 | |||||||||||
| Non-cash<br> amortization of intangible assets | (7,160 | ) | (7,438 | ) | (14,322 | ) | (14,876 | ) | (7,162 | ) | |||||
| Profit<br> sharing expense | (139,742 | ) | (82,140 | ) | (268,211 | ) | (130,988 | ) | (128,469 | ) | |||||
| Non-segment<br> operations | 1,445 | (51,126 | ) | (50,064 | ) | (105,908 | ) | (51,509 | ) | ||||||
| Consolidated<br> Operating Income | $ | 1,618,063 | $ | 955,735 | $ | 3,112,930 | $ | 1,549,934 | $ | 1,494,867 | |||||
| Adjusted<br> EBITDA | |||||||||||||||
| Net<br> income | $ | 1,214,652 | $ | 712,203 | $ | 2,322,006 | $ | 1,150,958 | $ | 1,107,354 | |||||
| Income<br> taxes | 381,765 | 218,595 | 732,141 | 346,699 | 350,376 | ||||||||||
| Net<br> interest expense | 24,159 | 14,604 | 40,214 | 31,419 | 16,055 | ||||||||||
| Depreciation | 86,943 | 78,015 | 165,733 | 155,903 | 78,790 | ||||||||||
| Amortization<br> of intangible assets | 7,160 | 7,438 | 14,322 | 14,876 | 7,162 | ||||||||||
| Noncontrolling<br> interest (a) | (5,456 | ) | (9,665 | ) | (8,728 | ) | (18,087 | ) | (3,272 | ) | |||||
| EBITDA | 1,709,223 | 1,021,190 | 3,265,688 | 1,681,768 | 1,556,465 | ||||||||||
| Non-cash<br> adjustments | |||||||||||||||
| Unrealized<br> (gains) losses | (14,001 | ) | 1,305 | (13,701 | ) | (5,547 | ) | 300 | |||||||
| Inventory<br> valuation | 9,328 | 144 | 20,453 | 253 | 11,125 | ||||||||||
| Equity-based<br> compensation | 5,482 | 9,808 | 25,276 | 20,018 | 19,794 | ||||||||||
| Adjusted<br> EBITDA | $ | 1,710,032 | $ | 1,032,447 | $ | 3,297,716 | $ | 1,696,492 | $ | 1,587,684 | |||||
| Other<br> Operating Information | |||||||||||||||
| Steel | |||||||||||||||
| Average<br> external sales price (Per ton) (b) | $ | 1,539 | $ | 1,292 | $ | 1,549 | $ | 1,169 | $ | 1,561 | |||||
| Average<br> ferrous cost (Per ton melted) (c) | $ | 538 | $ | 439 | $ | 507 | $ | 406 | $ | 474 | |||||
| Flat<br> Roll shipments | |||||||||||||||
| Butler,<br> Columbus, and Sinton Flat Roll divisions | 1,690,832 | 1,512,530 | 3,242,677 | 3,009,061 | 1,551,845 | ||||||||||
| Steel<br> Processing divisions (d) | 432,701 | 410,596 | 844,354 | 833,446 | 411,653 | ||||||||||
| Long<br> Product shipments | |||||||||||||||
| Structural<br> and Rail Division | 513,170 | 497,079 | 979,991 | 975,766 | 466,821 | ||||||||||
| Engineered<br> Bar Products Division | 227,293 | 205,205 | 453,346 | 405,833 | 226,053 | ||||||||||
| Roanoke<br> Bar Division | 157,652 | 175,390 | 301,271 | 311,810 | 143,619 | ||||||||||
| Steel<br> of West Virginia | 92,597 | 90,476 | 187,434 | 177,634 | 94,837 | ||||||||||
| Total<br> Shipments (Tons) | 3,114,245 | 2,891,276 | 6,009,073 | 5,713,550 | 2,894,828 | ||||||||||
| External<br> Shipments (Tons) (b) | 2,691,918 | 2,504,007 | 5,101,681 | 4,914,824 | 2,409,763 | ||||||||||
| Steel<br> Mill Production (Tons) | 2,737,460 | 2,443,314 | 5,245,644 | 4,920,253 | 2,508,184 | ||||||||||
| Metals<br> Recycling | |||||||||||||||
| Nonferrous<br> shipments (000's of pounds) | 266,781 | 266,859 | 527,671 | 547,668 | 260,890 | ||||||||||
| Ferrous<br> shipments (Gross tons) | 1,358,729 | 1,400,447 | 2,623,951 | 2,796,290 | 1,265,222 | ||||||||||
| External<br> ferrous shipments (Gross tons) | 438,001 | 520,726 | 875,229 | 957,908 | 437,228 | ||||||||||
| Steel<br> Fabrication | |||||||||||||||
| Average<br> sales price (Per ton) | $ | 5,001 | $ | 1,753 | $ | 4,718 | $ | 1,582 | $ | 4,424 | |||||
| Shipments<br> (Tons) | 218,007 | 189,180 | 428,244 | 373,424 | 210,237 | ||||||||||
| (a) Net<br> of income tax expense (benefit) on noncontrolling interests. | |||||||||||||||
| --- | |||||||||||||||
| (b) Represents<br> all steel operations | |||||||||||||||
| (c) Represents<br> ferrous cost per ton melted at our electric arc furnace steel mills | |||||||||||||||
| (d) Includes<br> Heartland, The Techs, and United Steel Supply operations |