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) January 26, 2023 (January 25,2023 )
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 January 25, 2023, Steel Dynamics, Inc. issued a press release titled “Steel Dynamics Reports Fourth Quarter and Record Annual 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 January 25, 2023, titled “Steel Dynamics Reports Fourth Quarter and Record Annual 2022<br> Results.” |
| 104 | Cover Page Interactive Data File – the cover page interactive data file does not appear in the Interactive Data File because<br>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: January 26, 2023 | By: | Theresa E. Wagler |
| Title: | Executive Vice President and | |
| Chief Financial Officer |
Exhibit 99.1
| PressRelease<br><br><br><br>January 25, 2023 | 7575 W. Jefferson Blvd.<br><br><br><br>Fort Wayne, IN 46804 |
|---|
SteelDynamics Reports Fourth Quarter and
RecordAnnual 2022 Results
FORT WAYNE, INDIANA, January 25, 2023 / PRNewswire /
Annual 2022 Performance Highlights:
| § | Record net sales of $22.3 billion |
|---|---|
| § | Record operating income of $5.1 billion and net income of $3.9 billion |
| --- | --- |
| § | Record cash flow from operations of $4.5 billion and adjusted EBITDA of $5.5 billion |
| --- | --- |
| § | Record steel fabrication segment earnings of $2.4 billion |
| --- | --- |
| § | Record steel and steel fabrication shipments of 12.2 million tons and 856,000 tons, respectively |
| --- | --- |
| § | Added to the S&P500® Index |
| --- | --- |
| § | Share repurchases of $1.8 billion of the company’s common stock, representing 12 percent of its outstanding shares |
| --- | --- |
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced fourth quarter and annual 2022 financial results. The company reported fourth quarter 2022 net sales of $4.8 billion and net income of $635 million, or $3.61 per diluted share. Excluding the impact from the following items, the company’s fourth quarter adjusted net income was $769 million, or $4.37 per diluted share:
| § | Additional performance-based companywide special compensation of $24 million, or $0.09 per diluted share, awarded to all non-executive,<br>eligible team members in recognition of the company’s exceptional annual performance, and |
|---|---|
| § | Costs of $168 million, or $0.67 per diluted share, associated with startup of the company's Sinton Texas Flat Roll Steel Mill growth<br>investment. |
| --- | --- |
The company also realized a fourth quarter 2022 benefit of $19 million, or $0.11 per diluted share, related to state and federal prior year return to provision reconciliations.
Comparatively, the company’s sequential third quarter 2022 earnings were $5.03 per diluted share, and adjusted earnings were $5.46 per diluted share, excluding costs of $0.43 per diluted share associated with the startup of Sinton. Prior year fourth quarter earnings were $5.49 per diluted share and adjusted earnings were $5.78 per diluted share, excluding costs of $0.18 per diluted share associated with Sinton, additional performance-based companywide special compensation of $0.08 per diluted share, and a contribution to the company’s charitable foundation of $0.04 per diluted share.
“The team delivered a tremendous operational and financial performance during 2022, achieving record net sales of $22.3 billion, operating income of $5.1 billion, and adjusted EBITDA of $5.5 billion,” said Mark D. Millett, Chairman, President, and Chief Executive Officer. “Numerous individual operating and financial records were attained during the year. Across the company, our teams achieved best-in-class performance, while keeping each other safe. I am proud to work alongside each of them. Based on their performance, we achieved record annual cash flow from operations of $4.5 billion and ended the year with record liquidity of $3.4 billion, while at the same time meaningfully growing our business through significant organic growth investments, acquisitions, maintaining a positive cash dividend profile, and executing on our share repurchase program. We believe we are already one of the lowest carbon emission steel producers in the world, yet our teams continue to make great progress toward achieving our decarbonization goals. We have a firm foundation for our continued long-term, strategic growth, and ongoing value creation.
“Domestic steel demand was solid throughout the year supported most significantly by the construction, automotive, industrial, and energy sectors,” continued Millett. “Customer steel inventories remained at below historical averages for most of the year, allowing for steady order patterns. Our steel operations achieved record 2022 annual shipments of 12.2 million tons and its second highest annual operating income of $3.1 billion. The strength in the non-residential construction market drove earnings for our steel fabrication business, resulting in record annual shipments of 856,000 tons and record 2022 operating income of $2.4 billion. Despite a challenging pricing environment throughout much of the year, our metals recycling teams achieved operating income of $130 million. The strength of our diversified, value-added circular manufacturing model was certainly evidenced in 2022.”
Fourth Quarter 2022 Comments
Fourth quarter 2022 operating income for the company’s steel operations was $178 million, lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the company’s flat rolled operations. Metal spread compression was amplified by higher raw material costs, as the company’s steel operations work through high priced pig iron ordered in early 2022 in reaction to the Ukraine and Russia supply-chain disruptions. The fourth quarter 2022 average external product selling price for the company’s steel operations decreased $257 sequentially to $1,124 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills declined $58 to $414 per ton.
Fourth quarter operating income from the company’s metals recycling operations improved sequentially to $14 million, based on stronger shipments and increased metal margins, which more than offset lower ferrous and nonferrous scrap selling values. The company believes North American scrap prices have firmed with expectations for somewhat seasonally stronger pricing in the first quarter 2023.
The company’s steel fabrication business achieved another record quarter, with operating income of $682 million, based on steady realized selling values, lower steel input costs, and a continued steady non-residential construction demand environment. Fourth quarter 2022 steel fabrication shipments of 209,000 tons were strong, and the outlook remains positive, supported by strong product pricing and the company’s order backlog extending well into 2023.
Annual 2022 Comparison
Annual 2022 net income was a record $3.9 billion, or $20.92 per diluted share, with record net sales of $22.3 billion, as compared to net income of $3.2 billion, or $15.56 per diluted share, with net sales of $18.4 billion in 2021. Excluding the impact from the following items, the company’s 2022 adjusted net income was $4.2 billion, or $22.68 per diluted share:
| § | Additional performance-based companywide special compensation of $24 million, or $0.09 per diluted share, awarded to all non-executive,<br>eligible team members in recognition of the company’s exceptional record annual performance, and |
|---|---|
| § | Costs of $439 million, or $1.66 per diluted share, associated with construction and startup of the<br>company's Sinton Texas Flat Roll Steel Mill growth investment. |
| --- | --- |
Similarly, adjusting for the company’s Texas steel mill construction costs, performance based special compensation, and a contribution to the company’s charitable foundation, annual 2021 net income would have been $3.3 billion, or $16.09 per diluted share.
Annual 2022 record net sales increased 21 percent and operating income increased 18 percent to a record $5.1 billion, when compared to 2021. Higher net sales and earnings were driven by record product pricing and volume within the company’s steel fabrication business, resulting in record annual segment operating income of $2.4 billion. In comparison to last year, average 2022 annual steel fabrication selling values more than doubled to $4,976 per ton. Operating income for the company’s steel operations was $3.1 billion in 2022, based on record volume and stable average steel product pricing coupled with a six percent increase in average per ton melted scrap costs.
Based on the company’s differentiated business model and highly, variable cost structure, the company achieved record annual cash flow from operations of $4.5 billion during 2022. The company also invested $909 million in capital investments, funded growth acquisitions of $357 million, paid cash dividends of $237 million, and repurchased $1.8 billion of its common stock representing 12 percent of its outstanding shares, while increasing liquidity to a record $3.4 billion as of December 31, 2022.
Outlook
“Customer order entry activity continues to be healthy across our businesses,” said Millett. “Steel pricing has firmed, and our order activity and backlogs remain solid. We believe North American steel consumption will increase in 2023, and that demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing. Our steel fabrication operation’s order backlog also remains historically strong based on volume and forward pricing levels reaching past the first half of 2023. Since acquiring ROCA in October, their integration into our Mexican metals recycling operations is also proceeding well and will benefit our scrap and steel businesses in 2023. This environment, in combination with our existing and recently announced expansion initiatives, are firm drivers for our continued growth in the coming years.
“Steel Dynamics is in a position of strength as we enter 2023. We are ramping up operations at our new state-of-the-art electric arc furnace flat rolled steel mill located in Texas. The product quality is excellent, and grade development and dimensional tolerances have exceeded our expectations. Based on our current forecast, we expect Sinton’s annual utilization to be around 80 percent for 2023. Also, 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. “The team has placed orders for critical equipment, and the rolling mill site location in Columbus, Mississippi 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 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 welfare 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 fourth quarter and annual 2022 operating and financial results on Thursday, January 26, 2023, at 10:00 a.m. Eastern 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 Time on February 1, 2023.
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 | Year Ended | Three Months | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | Ended | |||||||||||||
| 2022 | 2021 | 2022 | 2021 | Sept. 30, 2022 | |||||||||||
| Net sales | $ | 4,826,287 | $ | 5,310,657 | $ | 22,260,774 | $ | 18,408,850 | $ | 5,651,707 | |||||
| Costs of goods sold | 3,838,740 | 3,548,820 | 16,142,943 | 13,046,426 | 4,187,278 | ||||||||||
| Gross profit | 987,547 | 1,761,837 | 6,117,831 | 5,362,424 | 1,464,429 | ||||||||||
| Selling, general and administrative expenses | 142,602 | 182,290 | 545,621 | 643,976 | 132,627 | ||||||||||
| Profit sharing | 79,218 | 143,243 | 452,551 | 388,111 | 105,122 | ||||||||||
| Amortization of intangible assets | 6,679 | 7,178 | 27,837 | 29,232 | 6,836 | ||||||||||
| Operating income | 759,048 | 1,429,126 | 5,091,822 | 4,301,105 | 1,219,844 | ||||||||||
| Interest expense, net of capitalized interest | 23,855 | 12,338 | 91,538 | 57,209 | 25,347 | ||||||||||
| Other expense (income), net | (23,257 | ) | 7,940 | (20,785 | ) | 34,826 | (13,975 | ) | |||||||
| Income before income taxes | 758,450 | 1,408,848 | 5,021,069 | 4,209,070 | 1,208,472 | ||||||||||
| Income tax expense | 119,439 | 313,151 | 1,141,577 | 962,256 | 289,997 | ||||||||||
| Net income | 639,011 | 1,095,697 | 3,879,492 | 3,246,814 | 918,475 | ||||||||||
| Net income attributable to noncontrolling interests | (4,147 | ) | (5,192 | ) | (16,818 | ) | (32,748 | ) | (4,150 | ) | |||||
| Net income attributable to Steel Dynamics, Inc. | $ | 634,864 | $ | 1,090,505 | $ | 3,862,674 | $ | 3,214,066 | $ | 914,325 | |||||
| Basic earnings per share attributable to | |||||||||||||||
| Steel Dynamics, Inc. stockholders | $ | 3.63 | $ | 5.53 | $ | 21.06 | $ | 15.67 | $ | 5.07 | |||||
| Weighted average common shares outstanding | 174,706 | 197,346 | 183,393 | 205,115 | 180,264 | ||||||||||
| Diluted earnings per share attributable to | |||||||||||||||
| Steel Dynamics, Inc. stockholders, including the | |||||||||||||||
| effect of assumed conversions when dilutive | $ | 3.61 | $ | 5.49 | $ | 20.92 | $ | 15.56 | $ | 5.03 | |||||
| Weighted average common shares | |||||||||||||||
| and share equivalents outstanding | 175,892 | 198,794 | 184,622 | 206,615 | 181,613 | ||||||||||
| Dividends declared per share | $ | 0.34 | $ | 0.26 | $ | 1.36 | $ | 1.04 | $ | 0.34 |
Steel Dynamics, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
| December 31, | December 31, | |||||
|---|---|---|---|---|---|---|
| Assets | 2022 | 2021 | ||||
| (unaudited) | ||||||
| Current assets | ||||||
| Cash and equivalents | $ | 1,628,417 | $ | 1,243,868 | ||
| Short-term investments | 628,215 | - | ||||
| Accounts receivable, net | 2,056,051 | 1,916,434 | ||||
| Inventories | 3,129,964 | 3,531,130 | ||||
| Other current assets | 195,371 | 209,591 | ||||
| Total current assets | 7,638,018 | 6,901,023 | ||||
| Property, plant and equipment, net | 5,373,665 | 4,751,430 | ||||
| Intangible assets, net | 267,507 | 295,345 | ||||
| Goodwill | 502,067 | 453,835 | ||||
| Other assets | 378,727 | 129,601 | ||||
| Total assets | $ | 14,159,984 | $ | 12,531,234 | ||
| Liabilities and Equity | ||||||
| Current liabilities | ||||||
| Accounts payable | $ | 1,017,238 | $ | 1,280,555 | ||
| Income taxes payable | 6,520 | 13,746 | ||||
| Accrued expenses | 951,204 | 835,894 | ||||
| Current maturities of long-term debt | 57,334 | 97,174 | ||||
| Total current liabilities | 2,032,296 | 2,227,369 | ||||
| Long-term debt | 3,013,241 | 3,008,702 | ||||
| Deferred income taxes | 889,103 | 854,905 | ||||
| Other liabilities | 129,539 | 120,087 | ||||
| Total liabilities | 6,064,179 | 6,211,063 | ||||
| Commitments and contingencies | ||||||
| Redeemable noncontrolling interests | 181,503 | 211,414 | ||||
| Equity | ||||||
| Common stock | 650 | 649 | ||||
| Treasury stock, at cost | (4,459,513 | ) | (2,674,267 | ) | ||
| Additional paid-in capital | 1,212,566 | 1,218,933 | ||||
| Retained earnings | 11,375,765 | 7,761,417 | ||||
| Accumulated other comprehensive income (loss) | 889 | (2,091 | ) | |||
| Total Steel Dynamics, Inc. equity | 8,130,357 | 6,304,641 | ||||
| Noncontrolling interests | (216,055 | ) | (195,884 | ) | ||
| Total equity | 7,914,302 | 6,108,757 | ||||
| Total liabilities and equity | $ | 14,159,984 | $ | 12,531,234 |
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| Three Months Ended | Year Ended | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| December 31, | December 31, | |||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||
| Operating activities: | ||||||||||||
| Net income | $ | 639,011 | $ | 1,095,697 | $ | 3,879,492 | $ | 3,246,814 | ||||
| Adjustments to reconcile net income to net cash provided by | ||||||||||||
| operating activities: | ||||||||||||
| Depreciation and amortization | 102,241 | 86,280 | 384,202 | 347,653 | ||||||||
| Equity-based compensation | 19,559 | 20,950 | 59,240 | 57,715 | ||||||||
| Deferred income taxes | 33,200 | 133,533 | 37,186 | 322,007 | ||||||||
| Other adjustments | 97 | (325 | ) | (1,795 | ) | (3,240 | ) | |||||
| Changes in certain assets and liabilities: | ||||||||||||
| Accounts receivable | 306,990 | (23,639 | ) | (110,560 | ) | (944,516 | ) | |||||
| Inventories | 258,871 | (633,359 | ) | 413,262 | (1,685,834 | ) | ||||||
| Other assets | 2,390 | 16,327 | (6,884 | ) | (2,491 | ) | ||||||
| Accounts payable | (136,279 | ) | 85,173 | (289,042 | ) | 557,735 | ||||||
| Income taxes receivable/payable | (115,199 | ) | (192,712 | ) | 31,623 | (105,921 | ) | |||||
| Accrued expenses | 32,547 | 135,974 | 63,679 | 414,214 | ||||||||
| Net cash provided by operating activities | 1,143,428 | 723,899 | 4,460,403 | 2,204,136 | ||||||||
| Investing activities: | ||||||||||||
| Purchases of property, plant and equipment | (344,201 | ) | (204,541 | ) | (908,902 | ) | (1,006,239 | ) | ||||
| Purchases of short-term investments | (292,886 | ) | - | (927,584 | ) | - | ||||||
| Proceeds from maturities of short-term investments | 248,156 | - | 297,950 | - | ||||||||
| Business combinations, net of cash acquired | (86,452 | ) | - | (134,090 | ) | - | ||||||
| Investments in unconsolidated affiliates | - | - | (222,480 | ) | - | |||||||
| Other investing activities | 6,497 | 3,546 | 15,837 | 6,819 | ||||||||
| Net cash used in investing activities | (468,886 | ) | (200,995 | ) | (1,879,269 | ) | (999,420 | ) | ||||
| Financing activities: | ||||||||||||
| Issuance of current and long-term debt | 414,324 | 456,644 | 1,465,257 | 1,516,556 | ||||||||
| Repayment of current and long-term debt | (380,424 | ) | (426,664 | ) | (1,507,475 | ) | (1,522,002 | ) | ||||
| Dividends paid | (60,032 | ) | (51,943 | ) | (237,163 | ) | (212,968 | ) | ||||
| Purchase of treasury stock | (413,015 | ) | (329,818 | ) | (1,800,905 | ) | (1,060,632 | ) | ||||
| Other financing activities | (27,473 | ) | (22,955 | ) | (116,298 | ) | (50,423 | ) | ||||
| Net cash used in financing activities | (466,620 | ) | (374,736 | ) | (2,196,584 | ) | (1,329,469 | ) | ||||
| Increase (decrease) in cash, cash equivalents, and restricted cash | 207,922 | 148,168 | 384,550 | (124,753 | ) | |||||||
| Cash, cash equivalents, and restricted cash at beginning of period | 1,425,997 | 1,101,201 | 1,249,369 | 1,374,122 | ||||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 1,633,919 | $ | 1,249,369 | $ | 1,633,919 | $ | 1,249,369 | ||||
| Supplemental disclosure information: | ||||||||||||
| Cash paid for interest | $ | 41,498 | $ | 41,158 | $ | 100,994 | $ | 103,374 | ||||
| Cash paid for income taxes, net | $ | 196,494 | $ | 366,322 | $ | 1,063,844 | $ | 737,157 |
Steel Dynamics, Inc.
SUPPLEMENTAL INFORMATION
(dollars in thousands)
| Fourth Quarter | Year to Date | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2022 | 2021 | 2022 | 2021 | 1Q 2022 | 2Q 2022 | 3Q 2022 | |||||||||||||||
| External Net Sales | |||||||||||||||||||||
| Steel | $ | 2,937,034 | $ | 3,786,221 | $ | 14,562,377 | $ | 13,199,142 | $ | 3,762,496 | $ | 4,142,021 | $ | 3,720,826 | |||||||
| Steel Fabrication | 1,089,979 | 680,006 | 4,245,986 | 1,761,647 | 929,981 | 1,085,753 | 1,140,273 | ||||||||||||||
| Metals Recycling | 463,282 | 550,674 | 2,164,708 | 2,183,472 | 579,625 | 649,736 | 472,065 | ||||||||||||||
| Other | 335,992 | 293,756 | 1,287,703 | 1,264,589 | 297,800 | 335,368 | 318,543 | ||||||||||||||
| Consolidated Net Sales | $ | 4,826,287 | $ | 5,310,657 | $ | 22,260,774 | $ | 18,408,850 | $ | 5,569,902 | $ | 6,212,878 | $ | 5,651,707 | |||||||
| Operating Income | |||||||||||||||||||||
| Steel | $ | 178,487 | $ | 1,366,880 | $ | 3,110,355 | $ | 4,376,079 | $ | 1,166,945 | $ | 1,106,659 | $ | 658,264 | |||||||
| Steel Fabrication | 681,904 | 237,639 | 2,424,819 | 365,414 | 466,916 | 599,232 | 676,767 | ||||||||||||||
| Metals Recycling | 14,240 | 43,581 | 129,933 | 195,464 | 48,146 | 57,629 | 9,918 | ||||||||||||||
| 874,631 | 1,648,100 | 5,665,107 | 4,936,957 | 1,682,007 | 1,763,520 | 1,344,949 | |||||||||||||||
| Non-cash amortization of intangible assets | (6,679 | ) | (7,178 | ) | (27,837 | ) | (29,232 | ) | (7,162 | ) | (7,160 | ) | (6,836 | ) | |||||||
| Profit sharing expense | (79,218 | ) | (143,243 | ) | (452,551 | ) | (388,111 | ) | (128,469 | ) | (139,742 | ) | (105,122 | ) | |||||||
| Non-segment operations | (29,686 | ) | (68,553 | ) | (92,897 | ) | (218,509 | ) | (51,509 | ) | 1,445 | (13,147 | ) | ||||||||
| Consolidated Operating Income | $ | 759,048 | $ | 1,429,126 | $ | 5,091,822 | $ | 4,301,105 | $ | 1,494,867 | $ | 1,618,063 | $ | 1,219,844 | |||||||
| Adjusted EBITDA | |||||||||||||||||||||
| Net income | $ | 639,011 | $ | 1,095,697 | $ | 3,879,492 | $ | 3,246,814 | $ | 1,107,354 | $ | 1,214,652 | $ | 918,475 | |||||||
| Income taxes | 119,439 | 313,151 | 1,141,577 | 962,256 | 350,376 | 381,765 | 289,997 | ||||||||||||||
| Net interest expense | 5,032 | 11,999 | 62,148 | 55,852 | 16,055 | 24,159 | 16,902 | ||||||||||||||
| Depreciation | 93,960 | 77,438 | 349,971 | 311,972 | 78,790 | 86,943 | 90,278 | ||||||||||||||
| Amortization of intangible assets | 6,679 | 7,178 | 27,837 | 29,232 | 7,162 | 7,160 | 6,836 | ||||||||||||||
| Noncontrolling interest (a) | (4,839 | ) | (5,242 | ) | (18,373 | ) | (33,257 | ) | (3,272 | ) | (5,456 | ) | (4,806 | ) | |||||||
| EBITDA | 859,282 | 1,500,221 | 5,442,652 | 4,572,869 | 1,556,465 | 1,709,223 | 1,317,682 | ||||||||||||||
| Non-cash adjustments | |||||||||||||||||||||
| Unrealized (gains) losses | 8,361 | (2,856 | ) | 713 | (2,048 | ) | 300 | (14,001 | ) | 6,053 | |||||||||||
| Inventory valuation | 9,143 | 6,101 | 37,292 | 6,495 | 11,125 | 9,328 | 7,696 | ||||||||||||||
| Equity-based compensation | 29,425 | 23,119 | 69,219 | 80,163 | 19,794 | 5,482 | 14,518 | ||||||||||||||
| Adjusted EBITDA | $ | 906,211 | $ | 1,526,585 | $ | 5,549,876 | $ | 4,657,479 | $ | 1,587,684 | $ | 1,710,032 | $ | 1,345,949 | |||||||
| Other Operating Information | |||||||||||||||||||||
| Steel | |||||||||||||||||||||
| Average external sales price (Per ton) (b) | $ | 1,124 | $ | 1,662 | $ | 1,399 | $ | 1,381 | $ | 1,561 | $ | 1,539 | $ | 1,381 | |||||||
| Average ferrous cost (Per ton melted) (c) | $ | 414 | $ | 490 | $ | 475 | $ | 447 | $ | 474 | $ | 538 | $ | 472 | |||||||
| Flat Roll shipments | |||||||||||||||||||||
| Butler, Columbus, and Sinton | 1,761,738 | 1,416,890 | 6,771,141 | 5,868,734 | 1,551,845 | 1,690,832 | 1,766,726 | ||||||||||||||
| Steel Processing divisions (d) | 404,309 | 404,733 | 1,673,967 | 1,653,433 | 411,653 | 432,701 | 425,304 | ||||||||||||||
| Long Product shipments | |||||||||||||||||||||
| Structural and Rail Division | 408,109 | 460,651 | 1,865,405 | 1,933,433 | 466,821 | 513,170 | 477,305 | ||||||||||||||
| Engineered Bar Products Division | 206,035 | 199,546 | 894,374 | 809,808 | 226,053 | 227,293 | 234,993 | ||||||||||||||
| Roanoke Bar Division | 126,346 | 132,318 | 589,449 | 595,879 | 143,619 | 157,652 | 161,832 | ||||||||||||||
| Steel of West Virginia | 87,701 | 86,381 | 363,832 | 356,353 | 94,837 | 92,597 | 88,697 | ||||||||||||||
| Total Shipments (Tons) | 2,994,238 | 2,700,519 | 12,158,168 | 11,217,640 | 2,894,828 | 3,114,245 | 3,154,857 | ||||||||||||||
| External Shipments (Tons) (b) | 2,614,079 | 2,277,865 | 10,410,469 | 9,559,617 | 2,409,763 | 2,691,918 | 2,694,709 | ||||||||||||||
| Steel Mill Production (Tons) | 2,681,597 | 2,395,437 | 10,720,704 | 9,844,170 | 2,508,184 | 2,737,460 | 2,793,463 | ||||||||||||||
| Metals Recycling | |||||||||||||||||||||
| Nonferrous shipments (000's of pounds) | 268,471 | 274,479 | 1,053,852 | 1,093,472 | 260,890 | 266,781 | 257,710 | ||||||||||||||
| Ferrous shipments (Gross tons) | 1,357,706 | 1,275,062 | 5,301,774 | 5,442,478 | 1,265,222 | 1,358,729 | 1,320,117 | ||||||||||||||
| External ferrous shipments (Gross tons) | 527,699 | 434,335 | 1,826,112 | 1,867,810 | 437,228 | 438,001 | 423,184 | ||||||||||||||
| Steel Fabrication | |||||||||||||||||||||
| Average sales price (Per ton) | $ | 5,222 | $ | 3,325 | $ | 4,976 | $ | 2,236 | $ | 4,424 | $ | 5,001 | $ | 5,245 | |||||||
| Shipments (Tons) | 208,956 | 204,497 | 855,641 | 789,118 | 210,237 | 218,007 | 218,441 |
(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 steel mills
(d) Includes Heartland, The Techs, and United Steel Supply operations