News Releases
Schnitzer Reports First Quarter 2013 Financial Results
Delivers Positive Operating Income and Expands Auto Parts Business
Platform by Ten Stores
PORTLAND, Ore.--(BUSINESS WIRE)--Jan. 8, 2013--
Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported adjusted
operating income of $3 million, an adjusted loss per share of $0.02 and
a loss per share of $0.06 for its fiscal 2013 first quarter ended
November 30, 2012. Adjusted results for the quarter exclude a $2 million
pre-tax restructuring charge associated with cost reduction initiatives
announced in August 2012. All three of the Company's business segments
generated positive operating income. Reported results for the first
quarter include the adverse impact of a noncash valuation allowance on
deferred tax assets of approximately $2 million, which equates to $0.06
per share, and the $2 million restructuring charge, which equates to
$0.04 per share. In the fourth quarter of 2012, the Company reported a
loss per share of $0.02.
During the first quarter, export and domestic sales prices for recycled
ferrous metals dropped approximately $50 per ton from August levels
driven by significantly lower domestic utilization rates and weak global
economic conditions which continued to adversely impact overall steel
demand. In addition, the supply of scrap continued to be constrained by
low US GDP growth, and supply volumes were negatively impacted by the
lower price environment. The combination of declining trend in selling
prices, the impact of constrained supply volumes on production costs and
the timing of shipments resulted in lower sales volumes and compressed
margins during the quarter.
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|
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Summary Results
|
|
($ in millions, except per share amounts)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
Change
|
|
1Q12
|
|
Change
|
|
Revenues
|
|
$
|
593
|
|
|
$
|
762
|
|
|
(22
|
)%
|
|
$
|
812
|
|
|
(27
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
NM
|
|
|
$
|
15
|
|
|
(92
|
)%
|
|
Restructuring Charges
|
|
2
|
|
|
5
|
|
|
(68
|
)%
|
|
—
|
|
|
—
|
|
|
Adjusted Operating Income(1)
|
|
$
|
3
|
|
|
$
|
4
|
|
|
(23
|
)%
|
|
$
|
15
|
|
|
(81
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to SSI
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
NM
|
|
|
$
|
7
|
|
|
NM
|
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|
Restructuring Charges, net of tax
|
|
1
|
|
|
3
|
|
|
(67
|
)%
|
|
—
|
|
|
—
|
|
|
Adjusted Net Income (Loss) attributable to SSI(1)
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
NM
|
|
|
$
|
7
|
|
|
NM
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Net Income (Loss) per share attributable to SSI
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$
|
(0.06
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)
|
|
$
|
(0.02
|
)
|
|
NM
|
|
|
$
|
0.25
|
|
|
NM
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|
|
Restructuring Charges, net of tax, per share
|
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0.04
|
|
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0.12
|
|
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(67
|
)%
|
|
—
|
|
|
—
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|
|
Adjusted diluted EPS attributable to SSI(1)
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|
$
|
(0.02
|
)
|
|
$
|
0.10
|
|
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NM
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|
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$
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0.25
|
|
|
NM
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|
|
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(1) Adjusted for restructuring charges. See Non-GAAP Financial
Measures for reconciliation to U.S. GAAP.
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NM = Not meaningful
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"As anticipated, during the first quarter of fiscal 2013 we continued to
face difficult market conditions for recycled metals, including a sharp
drop in both ferrous sales prices and volumes, due to soft demand
resulting from slowing global growth and the weak domestic economic
environment which continues to impact scrap generation. Despite these
challenges, each of our business segments remained profitable and our
Auto Parts and Steel Manufacturing businesses improved operating margins
sequentially," said Tamara Lundgren, President and Chief Executive
Officer. "We are on track with our restructuring initiatives to adjust
our cost base to reflect the current market environment, while
preserving our ability to take advantage of stronger future demand and
improved scrap flows."
"Recently, our Auto Parts Business added 10 new stores through a
combination of acquisitions and organic investment, seven of which are
in geographic proximity to our major metals recycling export facilities.
These new stores will increase the number of stores by 20% and are
consistent with our growth initiatives in the Auto Parts Business which
maximizes value throughout the automotive recycling process while
enhancing ferrous and nonferrous supply for our Metals Recycling
Business. As we continue to deliver enhanced synergies between our
Metals Recycling and Auto Parts businesses, our strong balance sheet,
reduced cost base and export-focused platform strategically position us
to benefit from an improvement in economic conditions domestically and
abroad."
Key business drivers during the first quarter of fiscal 2013:
-
Metals Recycling Business (MRB) shipped 955 thousand ferrous tons and
119 million nonferrous pounds. The sequential volume declines
reflected softer demand, reduced flows of raw materials and the timing
of shipments.
-
Auto Parts Business (APB) generated a 9% operating margin on 79
thousand cars purchased. Operating margins expanded sequentially
primarily due to lower inventory costs.
-
Steel Manufacturing Business (SMB) achieved $3 million in operating
income on sequentially flat selling prices and volumes, primarily due
to improved utilization and lower raw material costs.
Metals Recycling Business
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Summary of Metals Recycling Business Results
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($ in millions, except selling prices; Fe volumes 000s long tons;
NFe volumes M lbs)
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Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
Change
|
|
1Q12
|
|
Change
|
|
Total Revenues
|
|
$
|
494
|
|
|
$
|
652
|
|
|
(24
|
)%
|
|
$
|
728
|
|
|
(32
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Ferrous Revenues
|
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$
|
370
|
|
|
$
|
485
|
|
|
(24
|
)%
|
|
$
|
578
|
|
|
(36
|
)%
|
|
Ferrous Volumes
|
|
|
955
|
|
|
|
1,178
|
|
|
(19
|
)%
|
|
|
1,232
|
|
|
(23
|
)%
|
|
Avg. Net Ferrous Sales Prices ($/LT)(1)
|
|
$
|
358
|
|
|
$
|
378
|
|
|
(5
|
)%
|
|
$
|
432
|
|
|
(17
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous Revenues
|
|
$
|
117
|
|
|
$
|
158
|
|
|
(26
|
)%
|
|
$
|
142
|
|
|
(18
|
)%
|
|
Nonferrous Volumes
|
|
|
119
|
|
|
|
169
|
|
|
(30
|
)%
|
|
|
137
|
|
|
(13
|
)%
|
|
Avg. Net Nonferrous Sales Prices ($/lb)(1)
|
|
$
|
0.95
|
|
|
$
|
0.90
|
|
|
6
|
%
|
|
$
|
1.00
|
|
|
(5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income(2)
|
|
$
|
6
|
|
|
$
|
13
|
|
|
(57
|
)%
|
|
$
|
13
|
|
|
(57
|
)%
|
|
|
|
(1) Sales prices are shown net of freight
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|
(2) Operating income does not include the impact of restructuring
charges
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|
Sales Volumes: Ferrous sales volumes of 955 thousand tons
in the first quarter decreased 19% from fourth quarter levels, primarily
due to reduced flows of raw materials resulting from the lower price
environment as well as the timing of shipments. Nonferrous sales volumes
of 119 million pounds decreased 30% sequentially, primarily due to the
impact of lower beginning inventories and raw material flows.
Export customers accounted for 71% of total ferrous sales volumes in the
first quarter. Our ferrous and nonferrous products were shipped to 14
countries, with Turkey, South Korea, Taiwan and Indonesia being the top
ferrous export destinations.
Pricing: Demand softened in the export markets in
September and October, driving average net ferrous selling prices down
5% from fourth quarter levels. Nonferrous prices increased 6%
sequentially primarily due to slightly higher demand for nonferrous
commodities and product mix.
Margins: Operating income per ferrous ton was $6, a
decline of 46% sequentially. Overall, the first quarter was
significantly impacted by a sharp decline in selling prices and lower
volumes.
Auto Parts Business
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|
Summary of Auto Parts Business Results
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($ in millions)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
Change
|
|
1Q12
|
|
Change
|
|
Revenues
|
|
$
|
70
|
|
|
$
|
72
|
|
|
(3
|
)%
|
|
$
|
84
|
|
|
(17
|
)%
|
|
Operating Income(1)
|
|
$
|
6
|
|
|
$
|
2
|
|
|
295
|
%
|
|
$
|
10
|
|
|
(39
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Car Purchase Volumes (000s)
|
|
79
|
|
|
81
|
|
|
(2
|
)%
|
|
85
|
|
|
(7
|
)%
|
|
Locations (end of quarter)
|
|
51
|
|
|
51
|
|
|
—
|
|
|
50
|
|
|
2
|
%
|
|
|
|
(1) Operating income does not include the impact of restructuring
charges
|
|
|
Revenues: Revenues in the first quarter decreased 3%
sequentially due to lower shipped volumes and lower commodity prices.
Margins: Operating margins during the first quarter
increased sequentially to 9%, primarily due to lower average inventory
costs which more than offset the negative impact of lower commodity
prices on sales.
New Stores: Since the end of the first quarter, APB has
invested in 10 new self-service retail stores:
-
Acquired four stores in Richmond and Surrey, British Columbia,
expanding our presence in Western Canada near our Metals Recycling
facility in Surrey, British Columbia;
-
Developing a greenfield location in Calgary, Alberta, further
enhancing our North American supply;
-
Acquired two stores in the Kansas City metropolitan area, MO and KS,
and developing a greenfield location in Springfield, MO, expanding
APB’s presence in the Midwestern U.S.; and
-
Acquired two stores in Massachusetts, establishing a new Auto Parts
presence in the Northeast near our Metals Recycling facilities.
These growth initiatives further penetrate core markets for our Auto
Parts Business, leveraging existing operational resources and enhancing
scrap flows available to our Metals Recycling Business.
Steel Manufacturing Business
|
|
|
Summary of Steel Manufacturing Business Results
|
|
($ in millions, except selling prices; volume in thousands of
short tons)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
Change
|
|
|
1Q12
|
|
Change
|
|
Revenues
|
|
$
|
92
|
|
|
$
|
90
|
|
|
2
|
%
|
|
$
|
80
|
|
|
15
|
%
|
|
Operating Income
|
|
$
|
3
|
|
|
$
|
(3
|
)
|
|
NM
|
|
|
$
|
1
|
|
|
179
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Avg. Net Sales Prices ($/ST)
|
|
$
|
680
|
|
|
$
|
685
|
|
|
(1
|
)%
|
|
$
|
722
|
|
|
(6
|
)%
|
|
Finished Goods Sales Volumes
|
|
130
|
|
|
126
|
|
|
3
|
%
|
|
107
|
|
|
22
|
%
|
|
|
|
NM = Not meaningful
|
|
|
Sales Volumes: Finished steel sales volumes of 130
thousand tons increased 3% from the fourth quarter of fiscal 2012.
Pricing: Average net sales prices for finished steel
products of $680 approximated the fourth quarter.
Margins: Steady market conditions, combined with improved
utilization of 70% and reduced costs of raw materials, resulted in
operating income of $3 million during the first quarter.
Cost Reductions
In August, we announced initiatives to generate greater synergies from
our fiscal 2011 investments and to realign our organization by further
integrating our Metals Recycling and Auto Parts Businesses, streamlining
our corporate functions, and reducing organizational layers. In the
first quarter, SG&A was 14% lower as compared to the prior year first
quarter. First quarter SG&A improved slightly as compared to the fourth
quarter of fiscal 2012 excluding nonrecurring benefits of approximately
$4 million in the fourth quarter from changes in environmental reserves
and accrued compensation expense.
In aggregate, cost reduction initiatives are expected to lower annual
pre-tax operating costs by $25 million through a combination of lower
production and administrative expenses and be substantially complete by
the end of fiscal 2013. Total pre-tax restructuring charges are expected
to be approximately $11 million. During the first quarter, we incurred
$2 million of the restructuring charge. In aggregate, we have incurred
$7 million of the total $11 million anticipated restructuring charge,
and we expect to recognize the balance during the remainder of fiscal
2013.
Corporate Items
Corporate expense in the first quarter was $2 million higher
sequentially due to nonrecurring benefits in the fourth quarter of
fiscal 2012 from a reduction in compensation expense. In addition,
intercompany profit eliminations were slightly higher in the first
quarter due to higher inventories arising from the timing of shipments.
Income tax expense included the impact of a noncash valuation allowance
on deferred tax assets of a foreign subsidiary of approximately $2
million.
Total debt increased by $20 million to $355 million, primarily
reflecting higher working capital related to increases in accounts
receivable and replenishing inventories to support second quarter sales
volumes.
Analysts' Conference Call: First Quarter of Fiscal 2013
A conference call and slide presentation to discuss results will be held
today, January 8, 2013, at 11:30 a.m. EST hosted by Tamara Lundgren,
President and Chief Executive Officer, and Richard Peach, Chief
Financial Officer. The call and the slides will be webcast and
accessible on the Company's website at www.schnitzersteel.com.
Summary financial data is provided in the following tables. The slides
and related materials will be available prior to the call on the website.
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SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in
thousands)
(Unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
November 30, 2012
|
|
November 30, 2011
|
|
|
|
|
|
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
Metal Recycling Business:
|
|
|
|
|
|
Ferrous sales
|
|
$
|
370,476
|
|
|
$
|
578,024
|
|
|
Nonferrous sales
|
|
116,601
|
|
|
142,290
|
|
|
Other sales
|
|
7,384
|
|
|
8,124
|
|
|
TOTAL MRB SALES
|
|
494,461
|
|
|
728,438
|
|
|
|
|
|
|
|
|
Auto Parts Business
|
|
69,555
|
|
|
84,054
|
|
|
Steel Manufacturing Business
|
|
92,029
|
|
|
79,902
|
|
|
Intercompany sales and eliminations
|
|
(63,225
|
)
|
|
(80,218
|
)
|
|
Total Revenues
|
|
$
|
592,820
|
|
|
$
|
812,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME:
|
|
|
|
|
|
Metal Recycling Business
|
|
$
|
5,654
|
|
|
$
|
13,099
|
|
|
Auto Parts Business
|
|
6,364
|
|
|
10,442
|
|
|
Steel Manufacturing Business
|
|
3,404
|
|
|
1,218
|
|
|
Segment operating income
|
|
15,422
|
|
|
24,759
|
|
|
|
|
|
|
|
|
Corporate expense
|
|
(11,144
|
)
|
|
(10,296
|
)
|
|
Intercompany eliminations
|
|
(1,472
|
)
|
|
507
|
|
|
|
|
|
|
|
|
Adjusted operating income
|
|
2,806
|
|
|
14,970
|
|
|
|
|
|
|
|
|
Restructuring charges
|
|
(1,593
|
)
|
|
—
|
|
|
Total operating income
|
|
$
|
1,213
|
|
|
$
|
14,970
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
November 30, 2012
|
|
November 30, 2011
|
|
Revenues
|
|
$
|
592,820
|
|
|
$
|
812,176
|
|
|
Cost of goods sold
|
|
541,884
|
|
|
742,215
|
|
|
Selling, general and administrative
|
|
47,995
|
|
|
55,992
|
|
|
Loss (Income) from joint ventures
|
|
135
|
|
|
(1,001
|
)
|
|
Restructuring charges
|
|
1,593
|
|
|
—
|
|
|
Operating income
|
|
1,213
|
|
|
14,970
|
|
|
Interest expense
|
|
(2,017
|
)
|
|
(3,271
|
)
|
|
Other income (expense), net
|
|
321
|
|
|
(393
|
)
|
|
Income (loss) before income taxes
|
|
(483
|
)
|
|
11,306
|
|
|
Income tax expense
|
|
(960
|
)
|
|
(3,561
|
)
|
|
Net income (loss)
|
|
(1,443
|
)
|
|
7,745
|
|
|
Net income attributable to noncontrolling interests
|
|
(228
|
)
|
|
(727
|
)
|
|
Net income (loss) attributable to SSI
|
|
$
|
(1,671
|
)
|
|
$
|
7,018
|
|
|
|
|
|
|
|
|
Income (loss) per share attributable to SSI - basic
|
|
$
|
(0.06
|
)
|
|
$
|
0.26
|
|
|
Income (loss) per share attributable to SSI - diluted
|
|
$
|
(0.06
|
)
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
Weighted average number of common shares:
|
|
|
|
|
|
Basic
|
|
26,567
|
|
|
27,451
|
|
|
Diluted
|
|
26,567
|
|
|
27,715
|
|
|
Dividends declared per common share
|
|
$
|
0.188
|
|
|
$
|
0.017
|
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING
STATISTICS
(Unaudited)
|
|
|
|
|
|
1Q13
|
|
1Q12
|
|
2Q12
|
|
3Q12
|
|
4Q12
|
|
Fiscal
2012
|
|
Metals Recycling Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Selling Prices ($/LT) (1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
$
|
354
|
|
|
$
|
420
|
|
|
$
|
424
|
|
|
$
|
414
|
|
|
$
|
357
|
|
|
$
|
406
|
|
Exports
|
|
|
360
|
|
|
|
436
|
|
|
|
420
|
|
|
|
427
|
|
|
|
384
|
|
|
|
417
|
|
Average
|
|
$
|
358
|
|
|
$
|
432
|
|
|
$
|
421
|
|
|
$
|
424
|
|
|
$
|
378
|
|
|
$
|
415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Sales Volume (LT)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic
|
|
|
279,450
|
|
|
|
319,451
|
|
|
|
297,142
|
|
|
|
308,521
|
|
|
|
261,747
|
|
|
|
1,186,861
|
|
Export
|
|
|
675,212
|
|
|
|
912,939
|
|
|
|
1,055,237
|
|
|
|
1,044,063
|
|
|
|
915,927
|
|
|
|
3,928,166
|
|
Total
|
|
|
954,662
|
|
|
|
1,232,390
|
|
|
|
1,352,379
|
|
|
|
1,352,584
|
|
|
|
1,177,674
|
|
|
|
5,115,027
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous Average Price ($/LB) (1)
|
|
$
|
0.95
|
|
|
$
|
1.00
|
|
|
$
|
0.91
|
|
|
$
|
0.97
|
|
|
$
|
0.90
|
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous Sales Volume (LB, in 000s)
|
|
|
118,931
|
|
|
|
137,243
|
|
|
|
168,545
|
|
|
|
154,071
|
|
|
|
168,794
|
|
|
|
628,652
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Manufacturing Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Prices ($/ST) (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
$
|
680
|
|
|
$
|
722
|
|
|
$
|
725
|
|
|
$
|
734
|
|
|
$
|
685
|
|
|
$
|
715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Volume (ST) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
|
78,159
|
|
|
|
62,487
|
|
|
|
51,141
|
|
|
|
55,378
|
|
|
|
74,797
|
|
|
|
243,803
|
|
Coiled Products
|
|
|
45,533
|
|
|
|
39,120
|
|
|
|
55,785
|
|
|
|
42,753
|
|
|
|
45,103
|
|
|
|
182,761
|
|
Merchant Bar and Other
|
|
|
5,926
|
|
|
|
5,030
|
|
|
|
5,097
|
|
|
|
4,812
|
|
|
|
5,837
|
|
|
|
20,776
|
|
Total
|
|
|
129,618
|
|
|
|
106,637
|
|
|
|
112,023
|
|
|
|
102,943
|
|
|
|
125,737
|
|
|
|
447,340
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Auto Parts Business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Car purchase volumes (000)
|
|
|
79
|
|
|
|
85
|
|
|
|
84
|
|
|
|
89
|
|
|
|
81
|
|
|
|
339
|
|
Number of self-service locations at end of quarter
|
|
|
51
|
|
|
|
50
|
|
|
|
51
|
|
|
|
51
|
|
|
|
51
|
|
|
|
51
|
|
|
|
(1) Price information is shown after a reduction for the cost of
freight incurred to deliver the product to the customer
|
|
(2) Excludes billet sales
|
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
|
|
|
|
|
|
November 30, 2012
|
|
August 31, 2012
|
|
Assets
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
24,404
|
|
|
$
|
89,863
|
|
Accounts receivable, net
|
|
152,860
|
|
|
137,313
|
|
Inventories, net
|
|
302,626
|
|
|
246,992
|
|
Other current assets
|
|
35,491
|
|
|
42,651
|
|
Total current assets
|
|
515,381
|
|
|
516,819
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
564,110
|
|
|
564,185
|
|
|
|
|
|
|
|
Goodwill and other assets
|
|
679,713
|
|
|
682,569
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,759,204
|
|
|
$
|
1,763,573
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
Short-term borrowings
|
|
$
|
9,169
|
|
|
$
|
683
|
|
Other current liabilities
|
|
157,291
|
|
|
178,159
|
|
Total current liabilities
|
|
166,460
|
|
|
178,842
|
|
|
|
|
|
|
|
Long-term debt
|
|
345,797
|
|
|
334,629
|
|
|
|
|
|
|
|
Other long-term liabilities
|
|
142,592
|
|
|
142,158
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
23,602
|
|
|
22,248
|
|
|
|
|
|
|
|
Equity:
|
|
|
|
|
|
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity
|
|
1,075,345
|
|
|
1,080,583
|
|
Noncontrolling interests
|
|
5,408
|
|
|
5,113
|
|
Total equity
|
|
1,080,753
|
|
|
1,085,696
|
|
Total liabilities and equity
|
|
$
|
1,759,204
|
|
|
$
|
1,763,573
|
|
|
Non-GAAP Financial Measures
This press release contains certain non-GAAP financial measures as
defined under SEC rules such as adjusted operating income, adjusted net
income (loss) attributable to SSI and adjusted diluted earnings per
share attributable to SSI. As required by SEC rules, the Company has
provided reconciliations of these measures to the most directly
comparable U.S. GAAP measures. Management believes that each of the
foregoing non-GAAP financial measures provides a meaningful presentation
of the Company's results from its core business operations excluding
adjustments for restructuring charges that are not related to the
Company's ongoing core business operations and improves the
period-to-period comparability of the Company's results from its core
business operations. These non-GAAP financial measures should be
considered in addition to, but not as a substitute for, the most
directly comparable U.S. GAAP measures.
|
|
|
Operating Income (Loss)
|
|
($ in millions)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
1Q12
|
|
Operating Income (Loss)
|
|
$
|
1
|
|
|
$
|
(1
|
)
|
|
$
|
15
|
|
Restructuring Charges
|
|
|
2
|
|
|
|
5
|
|
|
|
—
|
|
Adjusted Operating Income
|
|
$
|
3
|
|
|
$
|
4
|
|
|
$
|
15
|
|
|
|
|
|
|
|
Net Income (Loss) attributable to SSI
|
|
($ in millions)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
1Q12
|
|
Net Income (Loss) attributable to SSI
|
|
$
|
(2
|
)
|
|
$
|
—
|
|
|
$
|
7
|
|
Restructuring Charges, net of tax
|
|
|
1
|
|
|
|
3
|
|
|
|
—
|
|
Adjusted Net Income (Loss) attributable to SSI
|
|
$
|
(1
|
)
|
|
$
|
3
|
|
|
$
|
7
|
|
|
|
|
|
|
|
Diluted Earnings per share attributable to SSI
|
|
($ in millions)
|
|
|
|
Quarter
|
|
|
|
1Q13
|
|
4Q12
|
|
1Q12
|
|
Net Income (Loss) per share attributable to SSI
|
|
$
|
(0.06
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
0.25
|
|
Restructuring Charges, net of tax, per share
|
|
|
0.04
|
|
|
|
0.12
|
|
|
|
—
|
|
Adjusted Diluted EPS attributable to SSI
|
|
$
|
(0.02
|
)
|
|
$
|
0.10
|
|
|
$
|
0.25
|
|
|
About Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. is one of the largest manufacturers and
exporters of recycled ferrous metal products in the United States with
58 operating facilities located in 14 states, Puerto Rico and Western
Canada. The business has seven deep water export facilities located on
both the East and West Coasts and in Hawaii and Puerto Rico. The
Company's integrated operating platform also includes its auto parts and
steel manufacturing businesses. The Company's auto parts business sells
used auto parts through its 59 self-service facilities located in 15
states and Western Canada. With an effective annual production capacity
of approximately 800,000 tons, the Company's steel manufacturing
business produces finished steel products, including rebar, wire rod and
other specialty products. The Company commenced its 107th
year of operations in 2013.
Safe Harbor for Forward Looking Statements
Statements and information included in this press release that are not
purely historical are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and are made pursuant
to the “safe harbor” provisions of the Private Securities Litigation
Reform Act of 1995. Except as noted herein or as the context may
otherwise require, all references to “we,” “our,” “us” and “SSI” refer
to the Company and its consolidated subsidiaries.
Forward-looking statements in this press release include statements
regarding our expectations, intentions, beliefs and strategies regarding
the future, including statements regarding trends, cyclicality and
changes in the markets we sell into; strategic direction; changes to
manufacturing and production processes; the cost of compliance with
environmental and other laws; expected tax rates, deductions and
credits; the realization of deferred tax assets; planned capital
expenditures; liquidity positions; ability to generate cash from
operations; the potential impact of adopting new accounting
pronouncements; expected results, including pricing, sales volumes and
profitability; obligations under our retirement plans; savings or
additional costs from business realignment and cost containment
programs; and the adequacy of accruals.
When used in this report, the words “believes,” “expects,”
“anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,”
“could,” “opinions,” “forecasts,” “future,” “forward,” “potential,”
“probable,” and similar expressions are intended to identify
forward-looking statements.
We may make other forward-looking statements from time to time,
including in reports filed with the Securities and Exchange Commission,
press releases and public conference calls. All forward-looking
statements we make are based on information available to us at the time
the statements are made, and we assume no obligation to update any
forward-looking statements, except as may be required by law. Our
business is subject to the effects of changes in domestic and global
economic conditions and a number of other risks and uncertainties that
could cause actual results to differ materially from those included in,
or implied by, such forward-looking statements. Some of these risks and
uncertainties are discussed in "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" in our most recent annual report on Form 10-K and quarterly
report on Form 10-Q. Examples of these risks include: potential
environmental cleanup costs related to the Portland Harbor Superfund
site; the impact of general economic conditions; volatile supply and
demand conditions affecting prices and volumes in the markets for both
our products and raw materials we purchase; difficulties associated with
acquisitions and integration of acquired businesses; the impact of
goodwill impairment charges; the realization of expected cost reductions
related to restructuring initiatives; the inability of customers to
fulfill their contractual obligations; the impact of foreign currency
fluctuations; potential limitations on our ability to access capital
resources and existing credit facilities; restrictions on our business
and financial covenants under our bank credit agreement; the impact of
the consolidation in the steel industry; the impact of imports of
foreign steel into the U.S.; inability to realize expected benefits from
investments in technology; freight rates and availability of
transportation; product liability claims; costs associated with
compliance with environmental regulations; the adverse impact of climate
change; inability to obtain or renew business licenses and permits;
compliance with greenhouse gas emission regulations; reliance on
employees subject to collective bargaining agreements; and the impact of
the underfunded status of multiemployer plans in which we participate.
Source: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra
Deignan, 646-278-9711
adeignan@schn.com
or
Media
Relations:
Chip Terhune, 503-265-6370
cterhune@schn.com
or
Company
Info:
www.schnitzersteel.com
ir@schn.com