- Fourth quarter net earnings of $184.2 million, or $1.56 per diluted share; annual net earnings of
$859.8 million, or $7.25 per diluted share
- Fiscal 2023 core EBITDA of $1.5
billion, down only modestly from the record set in fiscal
2022
- Generated record annual cash flow from operating activities
of $1.3 billion and record annual
free cash flow of $737.4
million
- Fourth quarter North
America segment adjusted EBITDA increased from the prior
year period, driven by a solid demand environment, strong margins,
and good cost control
- Fourth quarter downstream new project bid
volumes in North America continued
to grow by a double-digit percentage on a year-over-year basis,
signaling a robust construction projects pipeline
- Meaningful progress on strategic growth initiatives:
successful Arizona 2 production
start-up, record quarterly Tensar
earnings contribution, and integration of EDSCO Fasteners
IRVING,
Texas, Oct. 12, 2023 /PRNewswire/
-- Commercial Metals Company (NYSE: CMC) today announced
financial results for its fiscal fourth quarter ended
August 31, 2023. Net earnings were $184.2 million, or $1.56 per diluted share, on net sales of
$2.2 billion, compared to prior year
period net earnings of $288.6
million, or $2.40 per diluted
share, on net sales of $2.4
billion.
For the full year fiscal 2023, CMC reported net earnings of
$859.8 million, or $7.25 per diluted share, on net sales of
$8.8 billion compared to prior year
net earnings of $1,217.3 million, or
$9.95 per diluted share, on net sales
of $8.9 billion.
During the fourth quarter of fiscal 2023, the Company recorded a
net after-tax charge of $15.7
million, primarily related to commissioning efforts at the
Arizona 2 micro mill. Excluding
this item, fourth quarter adjusted earnings were $199.9 million, or $1.69 per diluted share, compared to adjusted
earnings of $294.9 million, or
$2.45 per diluted share, in the prior
year period. "Adjusted EBITDA," "core EBITDA," "adjusted earnings"
and "adjusted earnings per diluted share" are non-GAAP financial
measures. Details, including a reconciliation of each such non-GAAP
financial measure to the most directly comparable measure prepared
and presented in accordance with GAAP, can be found in the
financial tables that follow.
Peter Matt, President and Chief
Executive Officer, said, "Fiscal 2023 marked another exceptional
year for CMC with highlights including record employee safety
performance, the second-best financial results in our Company's
108-year history, and the achievement of several strategic growth
milestones. These results were made possible by outstanding
operational, commercial, and strategic execution by the CMC team.
On behalf of our board of directors, employees, and shareholders, I
also want to thank Barbara Smith for
her outstanding leadership as Chief Executive Officer, which has
transformed the Company and built a strong foundation for the
future. I look forward to continuing the strong growth trajectory
that she established."
Mr. Matt added, "We generated strong core EBITDA in the fourth
quarter, with performance benefiting from solid demand and
attractive margin conditions within our North American markets
supported by our ongoing efforts to reduce controllable costs.
These tailwinds were partially offset by a challenging market
environment within Europe, where
weaker demand and compressed margins meaningfully impacted our
results.
"During the fourth quarter, we continued our progress in
investing and building for the future. CMC's Arizona 2 micro mill started operations
successfully in June and is making steady progress in ramping up
production. Additionally, our Tensar platform achieved record profitability
during the quarter, driven by strong customer acceptance of its
latest proprietary geogrid solution; and we are making good
progress integrating EDSCO Fasteners, a leading provider of
anchoring solutions for the electrical transmission market that
further expands our presence in the construction reinforcement
market. Construction has commenced at our Steel West Virginia
project, with key operations and leadership teams now on-site.
Altogether, these strategic initiatives meaningfully broaden our
exposure to the structural trends powering domestic construction,
which we expect will lead to future growth in earnings, cash flow,
and shareholder value," Matt concluded.
The Company's balance sheet and liquidity position remained
strong. As of August 31, 2023, cash and cash equivalents
totaled $592.3 million, with
available liquidity of $1.6 billion.
During the quarter, CMC repurchased 352,000 shares of common stock
valued at $18.6 million. As of
August 31, 2023, $86.7 million
remained available under the current share repurchase
authorization.
On October 10, 2023, the board of directors declared a
quarterly dividend of $0.16 per share
of CMC common stock payable to stockholders of record on
October 26, 2023. The dividend to be paid on November 9,
2023, marks the 236th consecutive quarterly payment by
the Company.
Business Segments - Fiscal Fourth Quarter 2023 Review
Demand for CMC's finished steel products in North America continued to be healthy during
the quarter. Downstream new project bid volumes, a
significant indicator of the construction project pipeline,
improved from a year ago. However, lower new contract awards drove
a modest year-over-year reduction in the volume and value of CMC's
downstream backlog. Demand from industrial end markets, which is
important for merchant products, was mixed, with certain
applications experiencing slower activity compared to past
quarters.
Adjusted EBITDA for the North
America segment slightly increased to $375.3 million in the fourth quarter of fiscal
2023 from $370.5 million in the prior
year period. Financial results for the period mark the eleventh
consecutive quarter of year-over-year growth in adjusted EBITDA,
excluding the large gain on the sale of real estate recognized in
the second quarter of fiscal 2022. The improvement was driven by
expanded margins over scrap costs on downstream products, as well
as ongoing cost reduction efforts. Controllable costs per ton of
finished steel decreased compared to the prior year period,
principally driven by lower input costs for key consumables and
reduced freight rates which more than offset costs related to the
operational start-up of Arizona 2
and a planned outage at CMC's Steel Alabama merchant bar mill.
North America shipment volumes
of finished steel, which include steel products and downstream
products, increased 2% year-over-year. The average selling price
for steel products decreased $172 per
ton compared to the fourth quarter of fiscal 2022, while the cost
of scrap utilized declined $49 per
ton, resulting in a year-over-year decrease in steel products
margin over scrap of $123 per ton.
The average selling price for downstream products increased
$81 per ton from the prior year
period.
Europe end market conditions
weakened during the quarter, as Polish construction activity
decelerated and industrial production across Central Europe remained muted. Against this
backdrop of tepid demand, average selling price decreased
$206 per ton from the fourth quarter
of the prior year, while scrap costs decreased by $37 per ton, leading to metal margin erosion. The
Europe segment reported an
adjusted EBITDA loss of $25.7 million
for the fourth quarter of fiscal 2023, compared to adjusted EBITDA
of $64.1 million in the prior year
period. In addition to metal margin compression, the decline in
profitability was also impacted by a 9% decrease in shipment
volumes compared to the prior year period, which reduced fixed cost
leverage. CMC reduced production by approximately 25% compared to
the prior year period to align inventory with current demand
conditions.
Outlook
Mr. Matt said, "We expect first quarter consolidated financial
performance to remain strong by historical standards, but decline
from the fourth quarter as a result of seasonally lower shipments,
steel product margin compression in North
America, and the continuation of challenging market
conditions in Europe. During the
first quarter, we anticipate that our Europe operations will receive approximately
$60 million from two large government
rebate programs. The first is an annual CO2 credit
estimated at $25 million, up from the
$9.5 million received last year. The
second is structured as a reimbursement by the Polish government
for elevated energy costs incurred during the European energy
crisis. Proceeds from this program are expected to be $35 million, and are calculated based on the
magnitude of energy cost inflation in calendar year 2023 relative
to the prior year baseline. These rebates are expected to drive a
sequential improvement in Europe
segment adjusted EBITDA."
Conference Call
CMC invites you to listen to a live broadcast of its fourth
quarter fiscal 2023 conference call today, Thursday, October 12, 2023, at 11:00 a.m. ET. Barbara R. Smith, Executive Chairman of the
Board; Peter Matt, President and
Chief Executive Officer; and Paul
Lawrence, Senior Vice President and Chief Financial Officer,
will host the call. The call is accessible via our website at
www.cmc.com. In the event you are unable to listen to the live
broadcast, the call will be archived and available for replay on
our website on the next business day. Financial and statistical
information presented in the broadcast are located on CMC's website
under "Investors."
About CMC
CMC is an innovative solutions provider helping build a
stronger, safer, and more sustainable world. Through an extensive
manufacturing network principally located in the United States and Central Europe, we offer products and
technologies to meet the critical reinforcement needs of the global
construction sector. CMC's solutions support construction across a
wide variety of applications, including infrastructure,
non-residential, residential, industrial, and energy generation and
transmission.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws with respect to general
economic conditions, key macro-economic drivers that impact our
business, the effects of ongoing trade actions, the effects of
continued pressure on the liquidity of our customers, potential
synergies and organic growth provided by acquisitions and strategic
investments, demand for our products, shipment volumes, metal
margins, the ability to operate our steel mills at full capacity,
future availability and cost of supplies of raw materials and
energy for our operations, share repurchases, legal proceedings,
construction activity, international trade, the impact of the
Russian invasion of Ukraine,
capital expenditures, tax credits, our liquidity and our ability to
satisfy future liquidity requirements, estimated contractual
obligations, the expected capabilities and benefits of new
facilities, the timeline for execution of our growth plan and our
expectations or beliefs concerning future events. The statements in
this release that are not historical statements, are
forward-looking statements. These forward-looking statements can
generally be identified by phrases such as we or our management
"expects," "anticipates," "believes," "estimates," "future,"
"intends," "may," "plans to," "ought," "could," "will," "should,"
"likely," "appears," "projects," "forecasts," "outlook" or other
similar words or phrases, as well as by discussions of strategy,
plans or intentions.
The Company's forward-looking statements are based on
management's expectations and beliefs as of the time this news
release was prepared. Although we believe that our expectations are
reasonable, we can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
Except as required by law, we undertake no obligation to update,
amend or clarify any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events,
new information or circumstances or any other changes. Important
factors that could cause actual results to differ materially from
our expectations include those described in our filings with the
Securities and Exchange Commission, including, but not limited to,
in Part I, Item 1A, "Risk Factors" of our annual report on Form
10-K for the fiscal year ended August 31, 2022, and Part II,
Item 1A, "Risk Factors" of our subsequent quarterly reports on Form
10-Q, as well as the following: changes in economic conditions
which affect demand for our products or construction activity
generally, and the impact of such changes on the highly cyclical
steel industry; rapid and significant changes in the price of
metals, potentially impairing our inventory values due to declines
in commodity prices or reducing the profitability of our downstream
contracts due to rising commodity pricing; excess capacity in our
industry, particularly in China,
and product availability from competing steel mills and other steel
suppliers including import quantities and pricing; the impact of
the Russian invasion of Ukraine on
the global economy, inflation, energy supplies and raw materials;
increased attention to environmental, social and governance ("ESG")
matters, including any targets or other ESG or environmental
justice initiatives; operating and startup risks, as well as market
risks associated with the commissioning of new projects could
prevent us from realizing anticipated benefits and could result in
a loss of all or a substantial part of our investments; impacts
from global public health crises on the economy, demand for our
products, global supply chain and on our operations; compliance
with and changes in existing and future laws, regulations and other
legal requirements and judicial decisions that govern our business,
including increased environmental regulations associated with
climate change and greenhouse gas emissions; involvement in various
environmental matters that may result in fines, penalties or
judgments; evolving remediation technology, changing regulations,
possible third-party contributions, the inherent uncertainties of
the estimation process and other factors that may impact amounts
accrued for environmental liabilities; potential limitations in our
or our customers' abilities to access credit and non-compliance
with their contractual obligations, including payment obligations;
activity in repurchasing shares of our common stock under our share
repurchase program; financial and non-financial covenants and
restrictions on the operation of our business contained in
agreements governing our debt; our ability to successfully
identify, consummate and integrate acquisitions and realize any or
all of the anticipated synergies or other benefits of acquisitions;
the effects that acquisitions may have on our financial leverage;
risks associated with acquisitions generally, such as the inability
to obtain, or delays in obtaining, required approvals under
applicable antitrust legislation and other regulatory and
third-party consents and approvals; lower than expected
future levels of revenues and higher than expected future costs;
failure or inability to implement growth strategies in a timely
manner; the impact of goodwill or other indefinite-lived intangible
asset impairment charges; the impact of long-lived asset impairment
charges; currency fluctuations; global factors, such as trade
measures, military conflicts and political uncertainties, including
changes to current trade regulations, such as Section 232 trade
tariffs and quotas, tax legislation and other regulations which
might adversely impact our business; availability and pricing of
electricity, electrodes and natural gas for mill operations; our
ability to hire and retain key executives and other employees;our
ability to successfully execute leadership transitions; competition
from other materials or from competitors that have a lower cost
structure or access to greater financial resources; information
technology interruptions and breaches in security; our ability to
make necessary capital expenditures; availability and pricing of
raw materials and other items over which we exert little influence,
including scrap metal, energy and insurance; unexpected equipment
failures; losses or limited potential gains due to hedging
transactions; litigation claims and settlements, court decisions,
regulatory rulings and legal compliance risks; risk of injury or
death to employees, customers or other visitors to our operations;
and civil unrest, protests and riots.
COMMERCIAL METALS
COMPANY
FINANCIAL &
OPERATING STATISTICS (UNAUDITED)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in thousands,
except per ton amounts)
|
|
8/31/2023
|
|
5/31/2023
|
|
2/28/2023
|
|
11/30/2022
|
|
8/31/2022
|
|
8/31/2023
|
|
8/31/2022
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,901,653
|
|
$
1,987,535
|
|
$
1,640,933
|
|
$
1,816,899
|
|
$
1,997,636
|
|
$
7,347,020
|
|
$
7,298,632
|
Adjusted
EBITDA
|
|
375,312
|
|
402,175
|
|
299,311
|
|
377,956
|
|
370,516
|
|
1,454,754
|
|
1,553,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
344
|
|
409
|
|
321
|
|
316
|
|
359
|
|
1,390
|
|
1,375
|
Rebar
|
|
542
|
|
539
|
|
425
|
|
461
|
|
451
|
|
1,967
|
|
1,805
|
Merchant bar and
other
|
|
216
|
|
248
|
|
236
|
|
243
|
|
249
|
|
943
|
|
1,025
|
Steel
products
|
|
758
|
|
787
|
|
661
|
|
704
|
|
700
|
|
2,910
|
|
2,830
|
Downstream
products
|
|
391
|
|
382
|
|
311
|
|
382
|
|
432
|
|
1,466
|
|
1,558
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
$
838
|
|
$
833
|
|
$
868
|
|
$
824
|
|
$
950
|
|
$
840
|
|
$
1,073
|
Steel
products
|
|
932
|
|
979
|
|
985
|
|
1,020
|
|
1,104
|
|
978
|
|
1,060
|
Downstream
products
|
|
1,429
|
|
1,452
|
|
1,418
|
|
1,399
|
|
1,348
|
|
1,426
|
|
1,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of raw materials
per ton
|
|
$
606
|
|
$
619
|
|
$
639
|
|
$
598
|
|
$
717
|
|
$
615
|
|
$
807
|
Cost of ferrous scrap
utilized per ton
|
|
$
338
|
|
$
384
|
|
$
346
|
|
$
325
|
|
$
387
|
|
$
349
|
|
$
431
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
594
|
|
$
595
|
|
$
639
|
|
$
695
|
|
$
717
|
|
$
629
|
|
$
629
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
301,264
|
|
$
353,294
|
|
$
355,633
|
|
$
406,513
|
|
$
412,264
|
|
$
1,416,704
|
|
$
1,621,642
|
Adjusted
EBITDA
|
|
(25,719)
|
|
9,618
|
|
12,949
|
|
64,505
|
|
64,096
|
|
61,353
|
|
346,051
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
151
|
|
146
|
|
183
|
|
204
|
|
177
|
|
684
|
|
622
|
Merchant bar and
other
|
|
238
|
|
283
|
|
253
|
|
269
|
|
251
|
|
1,043
|
|
1,097
|
Steel
products
|
|
389
|
|
429
|
|
436
|
|
473
|
|
428
|
|
1,727
|
|
1,719
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
products
|
|
$
682
|
|
$
753
|
|
$
756
|
|
$
792
|
|
$
888
|
|
$
749
|
|
$
896
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of ferrous scrap
utilized per ton
|
|
$
398
|
|
$
427
|
|
$
389
|
|
$
366
|
|
$
435
|
|
$
395
|
|
$
463
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
284
|
|
$
326
|
|
$
367
|
|
$
426
|
|
$
453
|
|
$
354
|
|
$
433
|
COMMERCIAL METALS
COMPANY
BUSINESS SEGMENTS
(UNAUDITED)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
|
8/31/2023
|
|
5/31/2023
|
|
2/28/2023
|
|
11/30/2022
|
|
8/31/2022
|
|
8/31/2023
|
|
8/31/2022
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$ 1,901,653
|
|
$ 1,987,535
|
|
$ 1,640,933
|
|
$ 1,816,899
|
|
$ 1,997,636
|
|
$ 7,347,020
|
|
$ 7,298,632
|
Europe
|
|
301,264
|
|
353,294
|
|
355,633
|
|
406,513
|
|
412,264
|
|
1,416,704
|
|
1,621,642
|
Corporate and
Other
|
|
6,311
|
|
4,160
|
|
21,437
|
|
3,901
|
|
(2,835)
|
|
35,809
|
|
(6,793)
|
Total net
sales
|
|
$ 2,209,228
|
|
$ 2,344,989
|
|
$ 2,018,003
|
|
$ 2,227,313
|
|
$ 2,407,065
|
|
$ 8,799,533
|
|
$ 8,913,481
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
|
$
375,312
|
|
$
402,175
|
|
$
299,311
|
|
$
377,956
|
|
$
370,516
|
|
$ 1,454,754
|
|
$ 1,553,858
|
Europe
|
|
(25,719)
|
|
9,618
|
|
12,949
|
|
64,505
|
|
64,096
|
|
61,353
|
|
346,051
|
Corporate and
Other
|
|
(38,390)
|
|
(37,715)
|
|
(15,573)
|
|
(39,725)
|
|
(32,227)
|
|
(131,403)
|
|
(154,103)
|
Total adjusted
EBITDA
|
|
$
311,203
|
|
$
374,078
|
|
$
296,687
|
|
$
402,736
|
|
$
402,385
|
|
$ 1,384,704
|
|
$ 1,745,806
|
COMMERCIAL METALS
COMPANY
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
|
|
Three Months Ended
August 31,
|
|
Year Ended August
31,
|
(in thousands,
except share and per share data)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
$ 2,209,228
|
|
$ 2,407,065
|
|
$
8,799,533
|
|
$
8,913,481
|
Costs and operating
expenses (income):
|
|
|
|
|
|
|
|
Cost of goods
sold
|
1,784,142
|
|
1,899,251
|
|
6,987,618
|
|
7,057,085
|
Selling, general and
administrative expenses
|
174,032
|
|
153,826
|
|
643,535
|
|
544,984
|
Interest
expense
|
8,259
|
|
14,230
|
|
40,127
|
|
50,709
|
Asset
impairments
|
3,734
|
|
453
|
|
3,780
|
|
4,926
|
Loss (gain) on sale of
assets
|
1,152
|
|
684
|
|
2,327
|
|
(275,422)
|
Loss on debt
extinguishment
|
1
|
|
—
|
|
179
|
|
16,052
|
Net costs and operating
expenses
|
1,971,320
|
|
2,068,444
|
|
7,677,566
|
|
7,398,334
|
Earnings before income
taxes
|
237,908
|
|
338,621
|
|
1,121,967
|
|
1,515,147
|
Income taxes
|
53,742
|
|
49,991
|
|
262,207
|
|
297,885
|
Net earnings
|
$
184,166
|
|
$
288,630
|
|
$
859,760
|
|
$
1,217,262
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
Basic
|
$
1.58
|
|
$
2.43
|
|
$
7.34
|
|
$
10.09
|
Diluted
|
1.56
|
|
2.40
|
|
7.25
|
|
9.95
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
$
0.16
|
|
$
0.14
|
|
$
0.64
|
|
$
0.56
|
Average basic shares
outstanding
|
116,725,241
|
|
118,780,227
|
|
117,077,703
|
|
120,648,090
|
Average diluted shares
outstanding
|
118,218,222
|
|
120,457,370
|
|
118,606,271
|
|
122,372,386
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
(in thousands,
except share and per share data)
|
|
August 31,
2023
|
|
August 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
592,332
|
|
$
672,596
|
Accounts receivable
(less allowance for doubtful accounts of $4,135 and
$4,990)
|
|
1,240,217
|
|
1,358,907
|
Inventories
|
|
1,035,582
|
|
1,169,696
|
Prepaid and other
current assets
|
|
276,024
|
|
240,269
|
Total current
assets
|
|
3,144,155
|
|
3,441,468
|
Property, plant and
equipment:
|
|
|
|
|
Land
|
|
160,067
|
|
155,237
|
Buildings and
improvements
|
|
1,071,102
|
|
799,715
|
Equipment
|
|
3,089,007
|
|
2,440,910
|
Construction in
process
|
|
213,651
|
|
489,031
|
|
|
4,533,827
|
|
3,884,893
|
Less accumulated
depreciation and amortization
|
|
(2,124,467)
|
|
(1,974,022)
|
Property, plant and
equipment, net
|
|
2,409,360
|
|
1,910,871
|
Intangible assets,
net
|
|
259,161
|
|
257,409
|
Goodwill
|
|
385,821
|
|
249,009
|
Other noncurrent
assets
|
|
440,597
|
|
378,270
|
Total assets
|
|
$
6,639,094
|
|
$
6,237,027
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
364,390
|
|
$
428,055
|
Accrued expenses and
other payables
|
|
438,811
|
|
540,136
|
Current maturities of
long-term debt and short-term borrowings
|
|
40,513
|
|
388,796
|
Total current
liabilities
|
|
843,714
|
|
1,356,987
|
Deferred income
taxes
|
|
306,801
|
|
250,302
|
Other noncurrent
liabilities
|
|
253,181
|
|
230,060
|
Long-term
debt
|
|
1,114,284
|
|
1,113,249
|
Total
liabilities
|
|
2,517,980
|
|
2,950,598
|
Stockholders'
equity:
|
|
|
|
|
Common stock, par value
$0.01 per share; authorized 200,000,000 shares; issued 129,060,664
shares; outstanding 116,515,427 and 117,496,053 shares
|
|
1,290
|
|
1,290
|
Additional paid-in
capital
|
|
394,672
|
|
382,767
|
Accumulated other
comprehensive loss
|
|
(3,778)
|
|
(114,451)
|
Retained
earnings
|
|
4,097,262
|
|
3,312,438
|
Less treasury stock,
12,545,237 and 11,564,611 shares at cost
|
|
(368,573)
|
|
(295,847)
|
Stockholders'
equity
|
|
4,120,873
|
|
3,286,197
|
Stockholders' equity
attributable to non-controlling interests
|
|
241
|
|
232
|
Total stockholders'
equity
|
|
4,121,114
|
|
3,286,429
|
Total liabilities and
stockholders' equity
|
|
$
6,639,094
|
|
$
6,237,027
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
Year Ended August
31,
|
(in
thousands)
|
|
2023
|
|
2022
|
Cash flows from (used
by) operating activities:
|
|
|
|
|
Net
earnings
|
|
$
859,760
|
|
$ 1,217,262
|
Adjustments to
reconcile net earnings to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
218,830
|
|
175,024
|
Stock-based
compensation
|
|
60,529
|
|
46,978
|
Deferred income taxes
and other long-term taxes
|
|
51,919
|
|
86,175
|
Write-down of
inventory
|
|
11,286
|
|
464
|
Asset
impairments
|
|
3,780
|
|
4,926
|
Net loss (gain) on
sales of assets
|
|
2,327
|
|
(275,422)
|
Loss on debt
extinguishment
|
|
179
|
|
16,052
|
Other
|
|
4,471
|
|
2,089
|
Settlement of New
Markets Tax Credit transaction
|
|
(17,659)
|
|
—
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
175,102
|
|
(257,607)
|
Inventories
|
|
177,024
|
|
(255,175)
|
Accounts payable,
accrued expenses and other payables
|
|
(174,120)
|
|
3,899
|
Other operating assets
and liabilities
|
|
(29,325)
|
|
(64,356)
|
Net cash flows from
operating activities
|
|
1,344,103
|
|
700,309
|
Cash flows from (used
by) investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(606,665)
|
|
(449,988)
|
Acquisitions, net of
cash acquired
|
|
(234,717)
|
|
(552,449)
|
Proceeds from
government grants related to property, plant and
equipment
|
|
5,000
|
|
—
|
Proceeds from
insurance
|
|
2,456
|
|
3,081
|
Proceeds from the sale
of property, plant and equipment and other
|
|
1,006
|
|
315,148
|
Other
|
|
(2,307)
|
|
(507)
|
Net cash flows used by
investing activities
|
|
(835,227)
|
|
(684,715)
|
Cash flows from (used
by) financing activities:
|
|
|
|
|
Proceeds from issuance
of long-term debt, net
|
|
—
|
|
743,391
|
Repayments of
long-term debt
|
|
(389,756)
|
|
(328,594)
|
Debt issuance
costs
|
|
(1,800)
|
|
(3,064)
|
Debt extinguishment
costs
|
|
(97)
|
|
(13,642)
|
Proceeds from accounts
receivable facilities
|
|
330,061
|
|
440,236
|
Repayments under
accounts receivable facilities
|
|
(349,015)
|
|
(433,936)
|
Treasury stock
acquired
|
|
(101,406)
|
|
(161,880)
|
Tax withholdings
related to share settlements, net of purchase plans
|
|
(12,539)
|
|
(9,457)
|
Dividends
|
|
(74,936)
|
|
(67,749)
|
Contribution from
non-controlling interest
|
|
9
|
|
—
|
Net cash flows from
(used by) financing activities
|
|
(599,479)
|
|
165,305
|
Effect of exchange rate
changes on cash
|
|
7,077
|
|
(2,785)
|
Increase
(decrease) in cash,
restricted cash, and cash equivalents
|
|
(83,526)
|
|
178,114
|
Cash, restricted cash
and cash equivalents at beginning of period
|
|
679,243
|
|
501,129
|
Cash, restricted cash
and cash equivalents at end of period
|
|
$
595,717
|
|
$
679,243
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
Cash paid for income
taxes
|
|
$
199,883
|
|
$
229,316
|
Cash paid for
interest
|
|
64,431
|
|
47,329
|
|
|
|
|
|
Noncash
activities:
|
|
|
|
|
Liabilities related to
additions of property, plant and equipment
|
|
$
31,379
|
|
$
55,648
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
592,332
|
|
$
672,596
|
Restricted
cash
|
|
3,385
|
|
6,647
|
Total cash, restricted
cash and cash equivalents
|
|
$
595,717
|
|
$
679,243
|
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
This press release contains financial measures not derived in
accordance with U.S. generally accepted accounting principles
("GAAP"). Reconciliations to the most comparable GAAP measure are
provided below.
Adjusted EBITDA, core EBITDA and adjusted earnings are non-GAAP
financial measures. Adjusted earnings per diluted share is defined
as adjusted earnings on a diluted per share basis.
Non-GAAP financial measures should be viewed in addition to, and
not as alternatives for, the most directly comparable measures
derived in accordance with GAAP and may not be comparable to
similar measures presented by other companies. However, we believe
that the non-GAAP financial measures provide relevant and useful
information to management, investors, analysts, creditors and other
interested parties in our industry as they allow: (i) comparison of
our earnings to those of our competitors; (ii) a supplemental
measure of our underlying business operational performance; and
(iii) the assessment of period-to-period performance trends.
Management uses non-GAAP financial measures to evaluate financial
performance and set target benchmarks for annual and long-term cash
incentive performance plans.
A reconciliation of net earnings to adjusted EBITDA and core
EBITDA is provided below:
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
8/31/2023
|
|
5/31/2023
|
|
2/28/2023
|
|
11/30/2022
|
|
8/31/2022
|
|
8/31/2023
|
|
8/31/2022
|
Net earnings
|
$
184,166
|
|
$
233,971
|
|
$
179,849
|
|
$
261,774
|
|
$
288,630
|
|
$
859,760
|
|
$
1,217,262
|
Interest
expense
|
8,259
|
|
8,878
|
|
9,945
|
|
13,045
|
|
14,230
|
|
40,127
|
|
50,709
|
Income
taxes
|
53,742
|
|
76,099
|
|
55,641
|
|
76,725
|
|
49,991
|
|
262,207
|
|
297,885
|
Depreciation and
amortization
|
61,302
|
|
55,129
|
|
51,216
|
|
51,183
|
|
49,081
|
|
218,830
|
|
175,024
|
Asset
impairments
|
3,734
|
|
1
|
|
36
|
|
9
|
|
453
|
|
3,780
|
|
4,926
|
Adjusted
EBITDA
|
311,203
|
|
374,078
|
|
296,687
|
|
402,736
|
|
402,385
|
|
1,384,704
|
|
1,745,806
|
Non-cash equity
compensation
|
16,529
|
|
10,376
|
|
16,949
|
|
16,675
|
|
9,122
|
|
60,529
|
|
46,978
|
Mill operational
commissioning costs(1)
|
12,297
|
|
7,264
|
|
6,811
|
|
5,574
|
|
—
|
|
31,946
|
|
—
|
Settlement of New
Markets Tax Credit transaction
|
—
|
|
—
|
|
(17,659)
|
|
—
|
|
—
|
|
(17,659)
|
|
—
|
Acquisition and
integration related costs and other
|
—
|
|
—
|
|
—
|
|
—
|
|
1,008
|
|
—
|
|
8,651
|
Purchase accounting
effect on inventory
|
—
|
|
—
|
|
—
|
|
—
|
|
6,506
|
|
—
|
|
8,675
|
Gain on sale of
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(273,315)
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,052
|
Core EBITDA
|
$
340,029
|
|
$
391,718
|
|
$
302,788
|
|
$
424,985
|
|
$
419,021
|
|
$
1,459,520
|
|
$
1,552,847
|
___________________
A reconciliation of net earnings to adjusted earnings is
provided below:
|
Three Months
Ended
|
|
Year
Ended
|
(in thousands,
except per share data)
|
8/31/2023
|
|
5/31/2023
|
|
2/28/2023
|
|
11/30/2022
|
|
8/31/2022
|
|
8/31/2023
|
|
8/31/2022
|
Net earnings
|
$ 184,166
|
|
$ 233,971
|
|
$ 179,849
|
|
$ 261,774
|
|
$
288,630
|
|
$
859,760
|
|
$
1,217,262
|
Asset
impairments
|
3,734
|
|
1
|
|
36
|
|
9
|
|
453
|
|
3,780
|
|
4,926
|
Mill operational
commissioning costs
|
16,131
|
|
7,287
|
|
6,825
|
|
5,584
|
|
—
|
|
35,827
|
|
—
|
Settlement of New
Markets Tax Credit transaction
|
—
|
|
—
|
|
(17,659)
|
|
—
|
|
—
|
|
(17,659)
|
|
—
|
Acquisition and
integration related costs and other
|
—
|
|
—
|
|
—
|
|
—
|
|
1,008
|
|
—
|
|
8,651
|
Purchase accounting
effect on inventory
|
—
|
|
—
|
|
—
|
|
—
|
|
6,506
|
|
—
|
|
8,675
|
Gain on sale of
assets
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(273,315)
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,052
|
Total adjustments
(pre-tax)
|
$
19,865
|
|
$ 7,288
|
|
$
(10,798)
|
|
$ 5,593
|
|
$ 7,967
|
|
$
21,948
|
|
$ (235,011)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International
restructuring
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(36,237)
|
Related tax effects on
adjustments
|
(4,172)
|
|
(1,530)
|
|
2,268
|
|
(1,175)
|
|
(1,673)
|
|
(4,609)
|
|
55,859
|
Total tax
items
|
(4,172)
|
|
(1,530)
|
|
2,268
|
|
(1,175)
|
|
(1,673)
|
|
(4,609)
|
|
19,622
|
Adjusted
earnings
|
$ 199,859
|
|
$ 239,729
|
|
$ 171,319
|
|
$ 266,192
|
|
$
294,924
|
|
$
877,099
|
|
$
1,001,873
|
Net earnings per
diluted share
|
$ 1.56
|
|
$
1.98
|
|
$
1.51
|
|
$
2.20
|
|
$
2.40
|
|
$
7.25
|
|
$
9.95
|
Adjusted earnings per
diluted share
|
$ 1.69
|
|
$
2.02
|
|
$
1.44
|
|
$
2.24
|
|
$
2.45
|
|
$
7.40
|
|
$
8.19
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cmc-reports-fourth-quarter-and-full-year-fiscal-2023-results-301954487.html
SOURCE CMC