News Releases

Schnitzer Reports Fourth Quarter and Fiscal 2015 Financial Results

Integration of Auto and Metals Recycling Businesses Completed

Targeted Cost Reductions Achieved Ahead of Schedule

Improvement in Sequential Operating Performance

PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 27, 2015-- Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today reported financial results for its fourth quarter and fiscal year ended August 31, 2015.

Fourth quarter adjusted earnings per share from continuing operations improved from the third quarter, reflecting increased profitability in both the Auto and Metals Recycling (AMR) and Steel Manufacturing Business (SMB). AMR generated adjusted operating income of $17 per ferrous ton, an $11 per ton increase sequentially, primarily due to a reduced adverse impact from average inventory accounting and the achievement of additional cost reductions in the quarter. In SMB, higher sales volumes from improving demand for West Coast construction markets and benefits from increased mill utilization contributed to fourth quarter operating income of $6 million. SMB's fiscal 2015 operating income was its best since 2008.

Consolidated Financial Performance

The Company announced adjusted earnings per share from continuing operations of $0.31 for the fourth quarter ended August 31, 2015, which compares to third quarter fiscal 2015 adjusted results of break-even and fourth quarter fiscal 2014 adjusted earnings per share of $0.36. Fourth quarter adjusted results included an adverse impact from average inventory accounting of approximately $0.14 per share which compares to a third quarter adverse impact of $0.40 and fourth quarter of fiscal 2014 which had a neutral impact.

The Company reported earnings per share from continuing operations of $0.42 for the fourth quarter. Reported earnings per share are higher than adjusted earnings per share due to the allocation of full year tax benefits to the fourth quarter, partly offset by restructuring charges. Fourth quarter fiscal 2015 results compare to third quarter fiscal 2015 loss per share from continuing operations of $0.31 and fourth quarter of fiscal 2014 earnings per share from continuing operations of $0.29.

The Company generated positive operating cash flow in the fourth quarter of $65 million which enabled the Company to reduce total debt to $228 million, the lowest level since 2011.

Strong Execution of Cost Reduction and Productivity Initiatives

During the fourth quarter, the Company successfully executed on the previously announced $60 million cost reduction and productivity initiatives. The Company achieved, ahead of schedule, $15 million of benefits from these initiatives in the fourth quarter, which reflected a $5 million increase compared to the third quarter.

"During the fourth quarter, we completed the integration of our Auto Parts and Metals Recycling Businesses into one division, Auto and Metals Recycling (AMR), in order to optimize operating efficiencies, capture additional synergies throughout our supply chain and global sales channel, and more effectively leverage shared services," said Tamara Lundgren, President and Chief Executive Officer. "The higher operating performance during the fourth quarter included further benefits from our cost reduction and productivity initiatives which outpaced the impact from the challenging global commodities markets.

"The combination of productivity and cost-saving initiatives and the creation of our integrated AMR division has increased the earnings power of our platform. Our continued focus on working capital efficiency generated $145 million of operating cash flow in fiscal 2015 which strengthened our balance sheet and reduced our net debt by 30% from fiscal year-end 2014. Our strong operational performance also enabled us to continue to return capital to shareholders. In fiscal 2016, we expect to generate further operating leverage from our newly integrated AMR business and deliver additional benefits from our productivity initiatives," added Lundgren.

                     
Summary Results
($ in millions, except per share amounts)
Quarter Year
4Q15 3Q15 4Q14 2015 2014
Revenues $ 457 $ 467 $ 690 $ 1,915 $ 2,535
Operating Income (Loss) $ 9 $ (4 ) $ 17 $ (196 ) $ 24
Goodwill impairment charge 141
Other asset impairment charges 1 45 1
Restructuring charges and other exit-related costs 1 6 13 7
Resale or modification of previously contracted shipments           7    
Adjusted Operating Income(1)(3) $ 10 $ 3 $ 17 $ 11 $ 33
Net Income (Loss) attributable to SSI $ 11 $ (10 ) $ 7 $ (197 ) $ 6
Net Income (Loss) from continuing operations attributable to SSI $ 12 $ (8 ) $ 8 $ (190 ) $ 9
Adjusted Net Income (Loss) from continuing operations attributable to SSI(2) $ 9 $ $ 10 $ 4 $ 16
Net Income (Loss) per share attributable to SSI $ 0.39 $ (0.36 ) $ 0.27 $ (7.29 ) $ 0.23
Net Income (Loss) per share from continuing operations attributable to SSI(1) $ 0.42 $ (0.31 ) $ 0.29 $ (7.03 ) $ 0.32
Adjusted diluted EPS from continuing operations attributable to SSI(2) $ 0.31 $ $ 0.36 $ 0.13 $ 0.58
(1) Adjusted operating income excludes the impact of goodwill and other asset impairments, restructuring charges and other exit-related costs, and the resale or modification of certain previously contracted ferrous bulk shipments. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(2) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.
(3) May not foot due to rounding.
 

Auto and Metals Recycling

AMR segment results and operating statistics reflect integrated auto and metals recycling operations for all periods presented.

 
Summary of Auto and Metals Recycling Results
($ in millions, except selling prices and data per ton; Fe volumes 000s long tons; NFe volumes Ms LB)
 
      Quarter     Year
4Q15     3Q15     4Q14 2015     2014
Total Revenues $ 403 $ 410 $ 622 $ 1,716 $ 2,334
 
Ferrous Revenues $ 235 $ 263 $ 428 $ 1,098 $ 1,629
Ferrous Volumes (000s LT) 929 1,006 1,143 3,708 4,309
Avg. Net Ferrous Sales Prices ($/LT)(1) $ 231 $ 235 $ 346 $ 269 $ 348
 
Nonferrous Revenues $ 140 $ 113 $ 155 $ 488 $ 556

Nonferrous Volumes (Ms LB)(2)

176 143 172 585 615

Avg. Net Nonferrous Sales Prices ($/LB)(1)(2)

$

0.71

$

0.71

$

0.82

$

0.75

$

0.83

 
Cars Purchased for Retail (000s) 88 79 101 337 360
 

Operating Income (Loss)(3)

$ 16 $ 4 $ 21 $ (164 ) $ 55
Operating Income (Loss) per Fe ton $ 17 $ 4 $ 18 $ (44 ) $ 13
 

Adjusted Operating Income(4)

$ 16 $ 6 $ 21 $ 28 $ 56
Adjusted Operating Income per Fe ton $ 17

$

6

$

18

$

8

$

13
(1) Sales prices are shown net of freight.

(2) Excludes PGM metals in catalytic converters.

(3) Operating income (loss) does not include the impact of restructuring charges and other exit-related costs.

(4) See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

 

Volumes: Ferrous sales volumes of 929 thousand tons in the fourth quarter declined 8% from the third quarter and were slightly lower than our previously announced preliminary estimates. Higher sales to the domestic market partially offset the adverse impact of weaker export demand on volumes. Nonferrous sales volumes of 176 million pounds increased 23% sequentially, primarily reflecting the timing of processed volumes and shipments. Cars purchased by our auto stores increased 11% from the third quarter which was adversely impacted by a sharp drop in commodity prices.

Export customers accounted for 59% of total ferrous sales volumes in the fourth quarter. Our ferrous and nonferrous products were shipped to 13 countries, with Turkey, South Korea and Thailand the top export destinations for ferrous shipments.

Pricing: Ferrous sales prices fell during July and August by approximately $50 per ton. As a result, average ferrous net sales prices decreased $4 per ton, or 2%, from third quarter levels. Average nonferrous sales prices in the fourth quarter were in line with the third quarter, primarily due to product mix which more than offset the decline in nonferrous commodity prices during the quarter.

Margins: Adjusted operating income of $17 per ferrous ton in the fourth quarter increased $11 per ton from the third quarter and was slightly higher than our preliminary estimates. Operating income includes higher benefits achieved from cost reductions and productivity initiatives and an estimated $6 per ton adverse impact from average inventory accounting. In the third quarter of fiscal 2015, the adverse impact from average inventory accounting was approximately $15 per ton. In the fourth quarter of fiscal 2014, there was no material impact from average inventory accounting.

Since the end of our fourth quarter, both domestic and export ferrous market prices have declined by approximately 20% which could result in an adverse impact from average inventory accounting in the first quarter of fiscal 2016.

Steel Manufacturing Business

 
Summary of Steel Manufacturing Business Results
($ in millions, except selling prices; volume 000s of short tons)
                     
Quarter Year
4Q15 3Q15 4Q14   2015  

 

  2014  
Revenues $ 92 $ 95 $ 117 $ 375 $ 389
Operating Income $ 6 $ 4 $ 9 $ 20 $ 19
 
Avg. Net Sales Prices ($/ST) $ 600 $ 618 $ 688 $ 639 $ 677
Finished Goods Sales Volumes 145 141 156 540 533
Rolling Mill Utilization 74 % 69 % 76 % 73 % 70 %
 

Volumes: Finished steel sales volumes of 145 thousand tons increased 3% sequentially due to improving demand for long products from West Coast nonresidential construction markets.

Pricing: Average net sales prices for finished steel products decreased 3% from third quarter levels, reflecting pressure on selling prices from increased import volumes.

Margins: Operating income of $6 million increased sequentially by 39%, reflecting higher sales volumes and increased operating leverage resulting from higher production levels.

Fiscal 2015 Cost Reduction and Productivity Improvements

In the fourth quarter, we successfully executed on previously announced cost reduction and productivity initiatives, generating savings of $15 million, an increase of $5 million compared to the third quarter. In fiscal 2015, we achieved $28 million of the targeted annual benefits of our $60 million plan announced in April 2015, and we expect to achieve substantially all of the annual benefits in fiscal 2016.

In connection with the cost reduction initiatives, the Company incurred restructuring charges and other exit-related costs of $13 million in fiscal 2015.

Corporate Items

During fiscal 2015, the Company invested $32 million in capital expenditures and returned $20 million to shareholders through dividend payments. Since the end of the third quarter, including subsequent to our fiscal year end, the Company repurchased 271 thousand shares in open market transactions representing approximately 1% of our Class A common stock. Net debt of $205 million at the end of the fourth quarter was $49 million lower than at the end of the third quarter in fiscal 2015. (See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.)

The Company's effective tax rate of 6% for fiscal year 2015 was lower than the federal statutory rate primarily due to the recognition of valuation allowances on tax benefits generated during the year. The fourth quarter included foreign investment tax basis benefits, net of valuation allowance, of approximately $3 million to both the reported and adjusted results.

Analysts' Conference Call: Fourth Quarter of Fiscal 2015

A conference call and slide presentation to discuss results will be held today, October 27, 2015, at 11:30 a.m. ET hosted by Tamara Lundgren, President and Chief Executive Officer, and Richard Peach, Senior Vice President and 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 pages. The slides and related materials will be available prior to the call on the website.

 
SCHNITZER STEEL INDUSTRIES, INC.
FINANCIAL HIGHLIGHTS
(in thousands)
(Unaudited)
                     
For the Three Months Ended For the Year Ended

August 31,
2015

May 31,
2015

August 31,
2014

August 31,
2015

August 31,
2014

 
REVENUES:
 
Auto and Metals Recycling:
Ferrous revenues $ 235,415 $ 262,940 $ 428,241 $ 1,098,225 $ 1,628,685
Nonferrous revenues 139,993 113,433 154,870 488,036 556,139
Retail and other revenues   27,875     33,896     39,322     130,035     149,565  
Total Auto and Metals Recycling revenues 403,283 410,269 622,433 1,716,296 2,334,389
 
Steel Manufacturing Business 91,754 94,939 117,021 375,037 388,640
Intercompany sales eliminations   (38,020 )   (37,899 )   (49,691 )   (175,934 )   (188,103 )
Total revenues $ 457,017   $ 467,309   $ 689,763   $ 1,915,399   $ 2,534,926  
 
 
OPERATING INCOME (LOSS):
 
Adjusted Auto and Metals Recycling(1) $ 15,619 $ 5,542 $ 20,728 $ 28,292 $ 56,017
Steel Manufacturing Business   6,029     4,343     8,626     20,378     18,538  

Adjusted segment operating income(1)(2)

21,648 9,885 29,354 48,670 74,555
 
Corporate expense (10,279 ) (7,554 ) (12,903 ) (35,315 ) (41,999 )
Intercompany eliminations   (1,609 )   908     511     (2,808 )   98  
Adjusted operating income(1) 9,760 3,239 16,962 10,547 32,654
 
Goodwill impairment charge (141,021 )
Other asset impairment charges (1,281 ) (45,119 ) (1,460 )
Restructuring charges and other exit-related costs (1,043 ) (5,978 ) (386 ) (13,008 ) (6,830 )
Resale or modification of previously contracted shipments               (6,928 )    
Total operating income (loss) $ 8,717   $ (4,020 ) $ 16,576   $ (195,529 ) $ 24,364  
(1) Adjusted operating income excludes the impact of goodwill and other asset impairments, restructuring and other exit-related costs, and the resale or modification of certain previously contracted ferrous bulk shipments. See Non-GAAP Financial Measures for reconciliation to U.S. GAAP.

(2) Segment operating income (loss) does not include the impact of restructuring charges and other exit-related costs.

 

 
SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
 
      For the Three Months Ended     For the Year Ended

August 31,
2015

   

May 31,
2015

   

August 31,
2014

August 31,
2015

   

August 31,
2014

Revenues $ 457,017   $ 467,309   $ 689,763   $ 1,915,399   $ 2,534,926  
Cost of goods sold 403,702 424,312 622,390 1,742,678 2,315,955
Selling, general and administrative 43,896 39,798 50,683 170,592 187,513
Income from joint ventures (341 ) (40 ) (272 ) (1,490 ) (1,196 )
Goodwill impairment charge 141,021
Other asset impairment charges 1,281 45,119 1,460
Restructuring charges and other exit-related costs   1,043     5,978     386     13,008     6,830  
Operating income (loss) 8,717 (4,020 ) 16,576 (195,529 ) 24,364
Interest expense (2,147 ) (2,375 ) (2,652 ) (9,191 ) (10,597 )
Other income, net   1,246     84     613     4,256     1,215  
Income (loss) from continuing operations before income taxes 7,816 (6,311 ) 14,537 (200,464 ) 14,982
Income tax benefit (expense)   4,444     (1,396 )   (5,849 )   12,615     (2,582 )
Income (loss) from continuing operations 12,260 (7,707 ) 8,688 (187,849 ) 12,400
Loss from discontinued operations, net of tax   (913 )   (1,234 )   (493 )   (7,227 )   (2,809 )
Net income (loss) 11,347 (8,941 ) 8,195 (195,076 ) 9,591
Net income attributable to noncontrolling interests   (615 )   (687 )   (942 )   (1,933 )   (3,667 )
Net income (loss) attributable to SSI $ 10,732   $ (9,628 ) $ 7,253   $ (197,009 ) $ 5,924  
 
Basic:
Income (loss) per share from continuing operations attributable to SSI $ 0.43 $ (0.31 ) $ 0.29 $ (7.03 ) $ 0.33
Loss per share from discontinued operations $ (0.03 ) $ (0.05 ) $ (0.02 ) $ (0.27 ) $ (0.10 )

Income (loss) per share attributable to SSI(1)

$ 0.40   $ (0.36 ) $ 0.27   $ (7.29 ) $ 0.22  

Diluted:

Income (loss) per share from continuing operations attributable to SSI $ 0.42 $ (0.31 ) $ 0.29 $ (7.03 ) $ 0.32
Loss per share from discontinued operations $ (0.03 ) $ (0.05 ) $ (0.02 ) $ (0.27 ) $ (0.10 )

Income (loss) per share attributable to SSI(1)

$ 0.39   $ (0.36 ) $ 0.27   $ (7.29 ) $ 0.22  
 
Weighted average number of common shares:
Basic 27,032 27,043 26,900 27,010 26,834
Diluted 27,439 27,043 27,103 27,010 27,000
Dividends declared per common share $ 0.1875 $ 0.1875 $ 0.1875 $ 0.750 $ 0.750
(1) May not foot due to rounding.

 
SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
 
                      Fiscal Year                     Fiscal Year
1Q15     2Q15     3Q15     4Q15     2015 1Q14     2Q14     3Q14     4Q14     2014

Auto and Metals Recycling(1)

Ferrous Selling Prices ($/LT)(2)

Domestic $ 330 $ 293 $ 235 $ 239 $ 275 $ 341 $ 362 $ 342 $ 334 $ 345
Export $ 319       $ 286       $ 236       $ 225       $ 265   $ 343       $ 361       $ 341       $ 352       $ 350  

Average

$ 323 $ 290 $ 235 $ 231 $ 269 $ 343 $ 361 $ 341 $ 346 $ 348
 
Ferrous Sales Volume (LT)
Domestic 379,770 372,408 342,812 376,910 1,471,900 369,545 369,355 389,618 379,363 1,507,881
Export   604,683         415,765         663,456         552,573         2,236,477     656,264         701,508         679,493         763,794         2,801,059  
Total 984,453 788,173 1,006,268 929,483 3,708,377 1,025,809 1,070,863 1,069,111 1,143,157 4,308,940
 
Nonferrous Average Price ($/LB)(2)(3) $

0.81

$

0.77

$

0.71

$

0.71

$

0.75

$

0.85

$

0.82

$

0.82

$

0.82

$

0.83

 
Nonferrous Sales Volume (000s LB)(3) 142,661 123,672 143,073 176,029 585,435 138,801 150,320 153,459 171,938 614,518
 
Car Purchase Volume (000s)(5) 92 78 79 88 337 86 80 93 101 360
Auto Stores at End of Quarter 56 56 55 55 55 56 55 55 56 56
 
Steel Manufacturing Business

Average Sales Prices ($/ST)(2)(4)

$ 688 $ 658 $ 618 $ 600 $ 639 $ 657 $ 676 $ 686 $ 688 $ 677
 

Sales Volume (ST)(4)

Rebar 79,065 74,928 100,413 94,773 349,179 83,618 83,838 85,633 101,076 354,165
Coiled Products 40,361 49,403 35,477 45,176 170,417 38,322 25,656 41,892 46,682 152,552
Merchant Bar and Other   6,245         4,567         4,780         4,796         20,388     6,222         5,305         6,984         7,979         26,490  
Total 125,671 128,898 140,670 144,745 539,984 128,162 114,799 134,509 155,737 533,207
 
Rolling Mill Utilization 72 % 76 % 69 % 74 % 73 % 65 % 67 % 72 % 76 % 70 %
(1) Ferrous and nonferrous volume and price data has been recast to reflect the combined auto and metals recycling operations for all periods presented.
(2) Price information is shown after a reduction for the cost of freight incurred to deliver the product to the customer.
(3) Excludes PGM metals in catalytic converters.
(4) Excludes billet sales.
(5) Cars purchased by auto stores only.
 

 
SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
 
      August 31, 2015     August 31, 2014

Assets

Current Assets:
Cash and cash equivalents $ 22,755 $ 25,672
Accounts receivable, net 111,492 189,359
Inventories, net 156,532 216,172
Other current assets   31,586   32,729
Total current assets 322,365 463,932
 
Property, plant and equipment, net 427,554 523,433
 
Goodwill and other assets   212,380   367,845
 
Total assets $ 962,299 $ 1,355,210
 

Liabilities and Equity

Current liabilities:
Short-term borrowings $ 584 $ 523
Other current liabilities   119,862   176,747
Total current liabilities 120,446 177,270
 
Long-term debt, net of current maturities 227,572 318,842
 
Other long-term liabilities 75,730 83,121
 
Equity:
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity 534,535 770,784
Noncontrolling interests   4,016   5,193
Total equity   538,551   775,977
Total liabilities and equity $ 962,299 $ 1,355,210
 

Non-GAAP Financial Measures

This press release contains certain non-GAAP financial measures as defined under SEC rules such as adjusted consolidated operating income (loss), adjusted AMR operating income (loss), adjusted net income (loss) from continuing operations attributable to SSI and adjusted diluted earnings per share from continuing operations 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 adjusted non-GAAP financial measures provides a meaningful presentation of the Company's results from its core business operations excluding adjustments for a goodwill impairment charge, other asset impairment charges and restructuring and other exit-related costs 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. In addition, to improve comparability of our operating performance between periods, these measures also exclude the impact on operating results in fiscal 2015 from the resale or modification of the terms during the first and second quarters of 2015 of certain previously contracted ferrous bulk shipments. Due to the sharp decline in selling prices that occurred during the first and second quarters of fiscal 2015, the revised prices associated with these shipments were significantly lower than the prices in the original sales contracts entered into between August and November 2014. Further, management believes that debt, net of cash is a useful measure for investors because, as cash and cash equivalents can be used, among other things, to repay indebtedness, netting this against total debt is a useful measure of our leverage. 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 Year
4Q15 3Q15 4Q14 2015 2014
Consolidated Operating Income (Loss):
Operating Income (Loss) $ 9 $ (4 ) $ 17 $ (196 ) $ 24
Goodwill impairment charge 141
Other asset impairment charges 1 45 1
Restructuring charges and other exit-related costs 1 6 13 7
Resale or modification of previously contracted shipments        

 

7  

 

Adjusted Operating Income(1) $ 10 $ 3 $ 17 $ 11 $ 33
 
AMR Operating Income (Loss):
Operating Income (Loss) $ 16 $ 4 $ 21 $ (164 ) $ 55
Goodwill impairment charge 141
Other asset impairment charges 1 44 1
Resale or modification of previously contracted shipment      

 

 

7

 

 

Adjusted Operating Income(1) $ 16 $ 6 $ 21 $ 28 $ 56

(1) Numbers may not foot due to rounding.

 
                     
Net Income (loss) from continuing operations attributable to SSI
($ in millions) Quarter Year
4Q15   3Q15 4Q14 2015 2014
Net Income (Loss) from continuing operations attributable to SSI $ 12 $ (8 ) $ 8 (190 ) 9
Goodwill impairment charge, net of tax (3 ) 128
Other asset impairment charges, net of tax (1 ) 1 44 1
Restructuring charges and other exit-related costs, net of tax 1 7 2 14 6
Resale or modification of previously contracted shipments, net of tax             7    
Adjusted Net Income from continuing operations attributable to SSI(1) $ 9 $ $ 10 $ 4 $ 16

(1) Numbers may not foot due to rounding.

 

                     
Diluted Earnings per share attributable to SSI
($ per share) Quarter Year
4Q15   3Q15 4Q14 2015 2014
Net Income (Loss) per share attributable to SSI $ 0.39 $ (0.36 ) $ 0.27 $ (7.29 ) $ 0.22
Less: Loss per share from discontinued operations   (0.03 )   (0.05 )   (0.02 )   (0.27 )   (0.10 )
Net Income (Loss) per share from continuing operations attributable to SSI(1) 0.42 (0.31 ) 0.29 (7.03 ) 0.32
Goodwill impairment charge, net of tax, per share (0.12 ) 4.74
Other asset impairment charges, net of tax, per share (0.04 ) 0.05 1.64 0.04
Restructuring charges and other exit-related costs, net of tax, per share 0.05 0.25 0.08 0.51 0.22
Resale or modification of previously contracted shipments, net of tax, per share   (0.01 )           0.27      
Adjusted Diluted EPS from continuing operations attributable to SSI(1) $ 0.31 $ $ 0.36 $ 0.13 $ 0.58

(1) May not foot due to rounding.

 
             
Debt, Net of Cash
($ in thousands)
August 31, 2015 May 31, 2015 August 31, 2014
Short-term borrowings $ 584 $ 637 $ 523
Long-term debt, net of current maturities   227,572   262,746   318,842
Total debt 228,156 263,383 319,365
Less: cash and cash equivalents   22,755   8,929   25,672
Total debt, net of cash $ 205,401 $ 254,454 $ 293,693
 

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. is one of the largest manufacturers and exporters of recycled metal products in the United States with operating facilities located in 24 states, Puerto Rico and Western Canada. Schnitzer's Auto and Metals Recycling (AMR) business operates seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico, and 105 auto parts stores and metals recycling facilities. Under its integrated operating platform, the Company also manufactures new steel products from recycled metals through its Steel Manufacturing Business (SMB). With an effective annual production capacity of approximately 800,000 tons, SMB produces finished steel long products, including rebar, wire rod and other specialty products primarily for construction in the Western United States and Canada. The Company began operations in 1906 in Portland, Oregon.

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 future events or our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding trends, cyclicality and changes in the markets we sell into; expected results, including pricing, sales volumes and profitability; strategic direction; changes to manufacturing and production processes; the cost of and the status of any agreements or actions related to our 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 continuing operations; the potential impact of adopting new accounting pronouncements; obligations under our retirement plans; benefits, savings or additional costs from business realignment, cost containment and productivity improvement programs; and the adequacy of accruals.

Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “will,” “could,” “opinions,” “forecasts,” “projects,” “plans,” “future,” “forward,” “potential,” “probable,” and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.

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 “Item 1A. Risk Factors” of 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 cyclicality and 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; imbalances in supply and demand conditions in the global steel industry; the impact of goodwill impairment charges; the impact of long-lived asset impairment charges; the realization of expected benefits or cost reductions associated with productivity improvement and restructuring initiatives; difficulties associated with acquisitions and integration of acquired businesses; customer fulfillment of 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; inability to realize expected benefits from investments in technology; freight rates and availability of transportation; impact of equipment upgrades and failures on production; product liability claims; the impact of impairment of our deferred tax assets; the impact of a cybersecurity incident; 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
Company Info:
www.schnitzersteel.com
ir@schn.com

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