Schnitzer Announces Completion of Auto and Metals Recycling Integration and Preliminary Results for Fourth Quarter of Fiscal 2015
Announces Fourth Quarter and Fiscal Year-End Earnings Date and
Conference Call Tuesday October 27, 2015 – 11:30 a.m. Eastern
PORTLAND, Ore.--(BUSINESS WIRE)--Sep. 30, 2015--
Schnitzer Steel Industries, Inc. (Nasdaq:SCHN) today announced the
completion, during the fourth quarter of fiscal 2015, of the integration
of its Auto Parts Business and Metals Recycling Business into a single
Auto and Metals Recycling Business (AMR). In accordance with the revised
operating structure, the Company plans to report financial segment and
operating information for the combined AMR business for the fourth
quarter and fiscal 2015, including comparable historical periods in its
earnings release.
In advance of its full earnings release, Schnitzer is also providing
preliminary results for its fourth quarter of fiscal 2015. AMR is
expected to generate operating income of approximately $16 million,
which includes an estimated adverse impact from average inventory
accounting of $5 million. Ferrous and nonferrous sales volumes are
expected to be in line sequentially, while car purchase volumes for auto
parts stores are expected to be approximately 10% higher than third
quarter levels. In our Steel Manufacturing Business, slightly higher
sales volumes combined with higher utilization rates are expected to
generate operating income in the range of $5 to $6 million.
Schnitzer expects fourth quarter of fiscal 2015 adjusted earnings per
share from continuing operations to be in the range of $0.27 - $0.30
which excludes restructuring charges of approximately $0.05. Reported
earnings per share from continuing operations are expected to be in the
range of $0.37 - $0.40. Reported earnings per share are expected to be
higher than adjusted earnings per share due to the allocation of full
year tax benefits to the fourth quarter, partly offset by restructuring
charges.
The Company also expects to report total debt of approximately $228
million as of August 31, 2015, its lowest level since 2011.
The preliminary, unaudited information provided above is based on the
Company’s current estimate of its financial results for the fourth
quarter ended August 31, 2015 and remains subject to change based on
management’s ongoing review of the Company’s fourth quarter financial
results and the completion of the Company’s annual audit.
The Company will report the financial results for its fourth quarter and
fiscal year ended August 31, 2015, on Tuesday, October 27, 2015. The
Company will webcast a conference call to discuss these results at 11:30
a.m. Eastern on the same day. The webcast of the call and the
accompanying slide presentation may be accessed on Schnitzer’s website
under the Investor section Event Calendar at www.schnitzersteel.com/events.
The call will be hosted by Tamara L. Lundgren, President and Chief
Executive Officer, and Richard D. Peach, Senior Vice President and Chief
Financial Officer.
Replay Information
Toll Free Dial: (855) 859-2056
Toll Free International Dial: (404) 537-3406
Conference ID: 48295289
Replay Available: 10/27/2015 to 11/1/2015
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, which may include statements regarding trends, cyclicality
and changes in the markets we sell into; strategic direction or
initiatives; 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; the anticipated value
of goodwill or other intangible assets; planned capital expenditures;
liquidity positions; ability to generate cash from continuing
operations; the potential impact of adopting new accounting
pronouncements; expected results, including pricing, sales volumes and
profitability; obligations under our retirement plans; benefits, savings
or additional costs from business realignment, cost containment and
productivity improvement 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 “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 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 impact of long-lived asset impairment charges; the
realization of expected cost reductions related to restructuring
initiatives; the benefit of business realignment, cost containment and
productivity improvement programs and strategic 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; 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.
Non-GAAP Financial Measures
This press release includes expected performance based on adjusted
earnings per share from continuing operations, a non-GAAP financial
measure as defined under SEC rules. Adjusted earnings per share from
continuing operations exclude certain costs, net of tax, related to
restructuring, goodwill and other asset impairment charges. Management
believes that the foregoing non-GAAP financial measure provides a
meaningful presentation of the Company's results from its core business
operations excluding items 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. This
non-GAAP financial measure should be considered in addition to, but not
as a substitute for earnings per share from continuing operations, the
most directly comparable US GAAP measure.
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 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 auto parts stores and steel
manufacturing. 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 began operations in 1906 in Portland,
Oregon.
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Source: Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc.
Investor Relations:
Alexandra
Deignan, 646-278-9711
www.schnitzersteel.com
[email protected]