Algoma Steel Group Reports Fiscal Fourth Quarter and Full Year 2024 Financial Results
Algoma Steel Group (NASDAQ: ASTL) announced its fiscal fourth quarter and full year 2024 financial results. For Q4, the company reported consolidated revenue of $620.6 million, a decrease from $677.4 million in the prior-year quarter. Net income was $28.0 million, compared to a net loss of $20.4 million in the prior-year quarter. Adjusted EBITDA was $41.5 million, down from $47.9 million. Full year revenue for fiscal 2024 was $2,795.8 million, with a net income of $105.2 million and Adjusted EBITDA of $312.7 million.
Algoma's operational highlights include the completion of phase two of the plate mill modernization project and the continued development of the Electric Arc Furnace (EAF) project. The company also issued US$350 million in Senior Secured Second Lien Notes to strengthen its balance sheet. Despite a challenging quarter due to a blast furnace shutdown, Algoma reaffirmed its transformative EAF project outlook and improved liquidity.
- Net income of $28.0 million in Q4, compared to a net loss of $20.4 million the prior-year quarter.
- Full year fiscal 2024 revenue of $2,795.8 million, up from $2,778.5 million the prior year.
- Q4 cash flows from operations increased to $121.2 million, from $95.4 million in the prior-year quarter.
- Completed the second phase of the plate mill modernization project, improving production capacity.
- Q4 revenue decreased to $620.6 million from $677.4 million in the prior-year quarter.
- Adjusted EBITDA for Q4 fell to $41.5 million from $47.9 million in the prior-year quarter.
- Lower steel shipments in Q4, down to 450,966 tons from 571,647 tons in the prior-year quarter.
- Full year fiscal 2024 net income decreased to $105.2 million from $298.5 million the prior year.
- Blast furnace shutdown in January 2024 negatively impacted hot metal production and Adjusted EBITDA by approximately $120 - $130 million.
Insights
The financial results for Algoma Steel's fiscal Q4 and FY 2024 show a mixed performance. Notably, revenue for both the quarter and year were relatively stable, at
Adjusted EBITDA margins have compressed from
For retail investors, the dividend remains consistent at
Algoma Steel's fiscal performance highlights the growing importance of sustainability in the steel industry. The Electric Arc Furnace (EAF) project, aimed at reducing carbon emissions by
Market conditions for steel have been volatile, but Algoma's strategic projects, including the plate mill modernization, are indicative of efforts to maintain competitiveness through innovation and efficiency. The decrease in quarterly shipments reflects broader industry challenges, such as supply chain disruptions and fluctuating demand. However, the completed upgrades to the plate mill may help mitigate these challenges by enhancing production capacity and quality, potentially leading to better market positioning once operational efficiencies are realized.
For stakeholders, the outlook for Q1 FY 2025 and beyond relies heavily on the timely and successful commissioning of the EAF, which may drive future profitability and market valuation. Short-term pressures may persist, but long-term prospects appear positive, driven by these transformative projects.
Fourth Quarter Results In-Line with Previously Announced Expectations
Plate and Strip Operations Running at Planned Production Levels
Reaffirmed Outlook on Transformative Electric Arc Furnace (EAF) Project
Provides Outlook for Q1 Fiscal 2025
Further Strengthened Liquidity with US
SAULT STE. MARIE, Ontario, June 20, 2024 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for its fiscal fourth quarter and full year ended March 31, 2024.
Unless otherwise specified, all amounts are in Canadian dollars.
Business Highlights and Fiscal 2024 to Fiscal 2023 Fourth Quarter Comparisons
- Consolidated revenue of
$620.6 million , compared to$677.4 million in the prior-year quarter. - Consolidated income from operations of
$3.1 million , compared to$21.7 million in the prior-year quarter. - Net income of
$28.0 million , compared to net loss of$20.4 million in the prior-year quarter. - Adjusted EBITDA of
$41.5 million and Adjusted EBITDA margin of6.7% , compared to$47.9 million and7.1% in the prior-year quarter (see “Non-IFRS Measures” below). - Cash flows generated from operations of
$121.2 million , compared to$95.4 million in the prior-year quarter. - Shipments of 450,966 tons, compared to 571,647 tons in the prior-year quarter.
- Completed latest upgrade related to the plate mill modernization project phase two.
- Paid quarterly dividend of US
$0.05 /share.
Fiscal 2024 to Fiscal 2023 Full Year Comparisons
- Consolidated revenue of
$2,795.8 million , compared to$2,778.5 million the prior year. - Consolidated income from operations of
$167.3 million , compared to$290.5 million the prior year. - Net income of
$105.2 million , compared to$298.5 million the prior year. - Adjusted EBITDA of
$312.7 million and Adjusted EBITDA margin of11.2% , compared to$452.3 million and16.3% the prior year (see “Non-IFRS Measures” below). - Cash flows generated from operations of
$294.4 million , compared to$177.3 million the prior year. - Shipments of 2,085,465 tons, compared to 2,002,715 tons the prior year.
Michael Garcia, the Company’s Chief Executive Officer, commented, “As previously disclosed, early in the quarter our operations were impacted by a utility corridor collapse at our coke-making facility that resulted in a blast furnace shutdown. It was thanks to the decisive and professional actions taken by the entire team that we were able to bring steel production back to near normal production levels in approximately three weeks. Additionally, following the quarter’s end, our team successfully completed the planned upgrade related to the second phase of our plate mill modernization project. This upgrade is now operational and has already resulted in increased plate output, which is expected to enhance our financial performance for years to come.”
Rajat Marwah, the Company’s Chief Financial Officer, added, “During the quarter we issued an aggregate of US
Mr. Garcia concluded, “Fiscal 2025 marks a pivotal and exciting period for Algoma. We remain on track with our transformative Electric Arc Furnace project and expect to begin commissioning activities by the end of calendar 2024, heralding a new era for our company. This transition will position Algoma as one of the greenest steel producers in North America, while simultaneously delivering long-term value to all our stakeholders.”
Fourth Quarter Fiscal 2024 Financial Results
Fourth quarter revenue totaled
Income from operations was
Net income in the fourth quarter was
Adjusted EBITDA in the fourth quarter was
Full Year Fiscal 2024 Financial Results
Revenue for fiscal year 2024 totaled
Income from operations for fiscal year 2024 was
Net income for fiscal year 2024 was
Adjusted EBITDA for fiscal year 2024 was
Electric Arc Furnace
In November 2021, the Company’s Board of Directors (the “Board”) authorized the Company to construct two new state of the art electric arc furnaces (“EAF”) to replace its existing blast furnace and basic oxygen steelmaking operations. The project continues to advance, with approximately
Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, which is expected to reduce the Company’s annual carbon emissions by approximately
Blast Furnace Outage
As previously disclosed, in January 2024 the Company experienced an unplanned outage at its blast furnace in connection with a utility corridor collapse at its coke-making facility. Management estimates the resultant outage negatively impacted hot metal production in the quarter by approximately 150,000 tons and reduced Adjusted EBITDA by approximately
Plate Mill Modernization Project
Subsequent to quarter-end, the Company successfully completed a planned upgrade related to the modernization of its plate facility. The upgrade to the mill is now substantially complete, and the operations and commercial teams are focused on ramping up the production and sales of plate products, putting the Company on a path towards our expected annual run rate capacity of over 650,000 NT.
Senior Secured Second Lien Notes
On April 5, 2024, the Company’s indirect wholly-owned subsidiary and operating company, Algoma Steel Inc. (“ASI"), issued an aggregate of US
Quarterly Dividend
The Board has declared a regular quarterly dividend in the amount of US
Outlook
The outlook that follows constitutes forward-looking statements (as defined below) and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially from our outlook as a result of numerous factors, including certain risk factors, many of which are beyond our control. Please see “Cautionary Statement Regarding Forward-Looking Statements” below.
In addition to the other assumptions and factors described in this news release, our outlook assumes modest improvement in steel prices consistent with the forward curve, ongoing inflationary pressures on raw material inputs, labor, and logistics costs, and the absence of material changes in our industry or the global economy. The following statements supersede all prior statements made by us and are based on current expectations.
Based on our current information regarding our operations and end markets, we currently expect the following for the first quarter of fiscal 2025:
- Adjusted EBITDA*:
$30 million to$40 million - Total steel shipments: 500,000 to 510,000 tons
* See Non-IFRS Measures” below.
Conference Call and Webcast Details
A webcast and conference call will be held on Friday, June 21, 2024 at 11:00 a.m. EDT to review the Company’s fiscal fourth quarter and full year results, discuss recent events, and conduct a question-and-answer session.
The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Fourth Quarter Conference Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13746955.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's audited consolidated financial statements for the years ended March 31, 2024, and March 31, 2023, and Management's Discussion & Analysis thereon are available as part of the Company’s Annual Report on Form 40-F under the Company’s profile on the U.S. Securities and Exchange Commission’s (“SEC”) EDGAR website at www.sec.gov and under the Company's profile on SEDAR+ at www.sedarplus.com. These documents, along with the Company’s Annual Information Form, are also available on the Company’s website, www.algoma.com, and shareholders may receive hard copies of such documents free of charge upon request by contacting IR@algoma.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding fiscal 2025 first quarter total steel shipments and Adjusted EBITDA, trends in the pricing of steel, Algoma’s expectation to continue to pay a quarterly dividend, Algoma’s transition to EAF steelmaking, including the progress, costs and timing of completion of the Company’s EAF project and the Company’s expected annual raw steel production capacity and reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, the potential impacts of inflationary pressures, labor availability, global supply chain disruptions on costs, Algoma’s modernization of its plate mill facilities (including annual plate capacity going forward), transformation journey, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes, and statements regarding the intended use of proceeds from the Company’s credit facilities and from the Notes, and the Company’s strategy, plans or future financial or operating performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the company’s SEDAR+ profile at www.sedarplus.com) and with the SEC, as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-IFRS Financial Measures
To supplement our financial statements, which are prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”), we use certain non-IFRS measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing a further understanding of our financial performance from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.
Adjusted EBITDA, as we define it, refers to net income (loss) before amortization of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations, income taxes, foreign exchange loss (gain), finance income, carbon tax, changes in fair value of warrant, earnout and share-based compensation liabilities, transaction costs, earnout and share-based compensation liabilities, transaction costs, listing expense, past service costs – pension, past service costs –post-employment benefits and share-based compensation related to performance share units. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS, and should not be considered as alternatives to net profit (loss) from operations, or any other measure of performance prescribed by IFRS. Adjusted EBITDA, as we define and use it, may not be comparable to Adjusted EBITDA as defined and used by other companies. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS measures. It is included because we believe it can be useful in measuring our operating performance and our ability to expand our business and provide management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Adjusted EBITDA is also used by analysts and our lenders as a measure of our financial performance. In addition, we consider Adjusted EBITDA margin to be a useful measure of our operating performance and profitability across different time periods that enhance the comparability of our results. However, these measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, cash flow from operations or other data prepared in accordance with IFRS. Because of these limitations, such measures should not be considered as measures of discretionary cash available to invest in business growth or to reduce indebtedness. We compensate for these limitations by relying primarily on our IFRS results using such measures only as supplements to such results. See the financial tables below for a reconciliation of net income (loss) to Adjusted EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC”) is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.
Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.
As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future as your partner in steel.
| Algoma Steel Group Inc. Consolidated Statements of Financial Position | |||||||
| As at, | March 31, 2024 | March 31, 2023 | |||||
| expressed in millions of Canadian dollars | |||||||
| Assets | |||||||
| Current | |||||||
| Cash | $97.9 | ||||||
| Restricted cash | 3.9 | 3.9 | |||||
| Taxes receivable | 20.0 | - | |||||
| Accounts receivable, net | 246.7 | 291.2 | |||||
| Inventories, net | 807.8 | 722.7 | |||||
| Prepaid expenses and deposits | 80.5 | 94.4 | |||||
| Other assets | 5.7 | 6.7 | |||||
| Total current assets | $1,262.5 | ||||||
| Non-current | |||||||
| Property, plant and equipment, net | $1,405.2 | ||||||
| Intangible assets, net | 0.7 | 0.9 | |||||
| Other assets | 7.6 | 7.1 | |||||
| Total non-current assets | $1,413.5 | ||||||
| Total assets | $2,676.0 | ||||||
| Liabilities and Shareholders' Equity | |||||||
| Current | |||||||
| Bank indebtedness | $0.3 | ||||||
| Accounts payable and accrued liabilities | 286.8 | 204.6 | |||||
| Taxes payable and accrued taxes | 30.1 | 14.4 | |||||
| Current portion of other long-term liabilities | 1.4 | 0.4 | |||||
| Current portion of governmental loans | 16.2 | 10.0 | |||||
| Current portion of environmental liabilities | 3.1 | 4.5 | |||||
| Warrant liability | 44.9 | 57.3 | |||||
| Earnout liability | 13.8 | 16.8 | |||||
| Share-based payment compensation liability | 31.9 | 33.5 | |||||
| Total current liabilities | $428.5 | ||||||
| Non-current | |||||||
| Long-term governmental loans | $127.4 | ||||||
| Accrued pension liability | 238.0 | 184.0 | |||||
| Accrued other post-employment benefit obligation | 229.5 | 222.9 | |||||
| Other long-term liabilities | 17.0 | 3.7 | |||||
| Environmental liabilities | 35.2 | 32.3 | |||||
| Deferred income tax liabilities | 98.0 | 96.7 | |||||
| Total non-current liabilities | $745.1 | ||||||
| Total liabilities | $1,173.6 | ||||||
| Shareholders' equity | |||||||
| Capital stock | $963.9 | ||||||
| Accumulated other comprehensive income | 267.1 | 313.6 | |||||
| Retained earnings | 288.4 | 211.6 | |||||
| Contributed deficit | (17.0 | ) | (21.4 | ) | |||
| Total shareholders' equity | $1,502.4 | ||||||
| Total liabilities and shareholders' equity | $2,676.0 | ||||||
| Algoma Steel Group Inc. Consolidated Statements of Net Income (Loss) | |||||||||||||||
| Three months ended March 31, | Year ended March 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| expressed in millions of Canadian dollars, except for per share amounts | |||||||||||||||
| Revenue | $620.6 | $2,795.8 | |||||||||||||
| Operating expenses | |||||||||||||||
| Cost of sales | $585.4 | $2,513.5 | |||||||||||||
| Administrative and selling expenses | 32.1 | 25.0 | 115.0 | 99.3 | |||||||||||
| Income from operations | $3.1 | $167.3 | |||||||||||||
| Other (income) and expenses | |||||||||||||||
| Finance income | ($1.2 | ) | ( | ) | ($10.0 | ) | ( | ) | |||||||
| Finance costs | 9.7 | 4.9 | 25.6 | 17.9 | |||||||||||
| Interest on pension and other post-employment benefit obligations | 4.9 | 4.8 | 19.3 | 17.2 | |||||||||||
| Foreign exchange (gain) loss | (15.8 | ) | 0.1 | (1.7 | ) | (41.1 | ) | ||||||||
| Change in fair value of warrant liability | (15.3 | ) | 19.4 | (12.1 | ) | (47.7 | ) | ||||||||
| Change in fair value of earnout liability | (3.4 | ) | 3.5 | 0.1 | (5.9 | ) | |||||||||
| Change in fair value of share-based compensation liability | (4.8 | ) | 6.9 | 1.2 | (12.7 | ) | |||||||||
| ($25.9 | ) | $22.4 | ( | ) | |||||||||||
| Income (loss) before income taxes | $29.0 | ( | ) | $144.9 | |||||||||||
| Income tax expense | 1.0 | 5.4 | 39.7 | 77.6 | |||||||||||
| Net income (loss) | $28.0 | ( | ) | $105.2 | |||||||||||
| Net income (loss) per common share | |||||||||||||||
| Basic | $0.26 | ( | ) | $0.97 | |||||||||||
| Diluted | $0.10 | ( | ) | $0.70 | |||||||||||
| Algoma Steel Group Inc. Consolidated Statements of Cash Flows | |||||||||||||||
| Three months ended March 31, | Year ended March 31, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| expressed in millions of Canadian dollars | |||||||||||||||
| Operating activities | |||||||||||||||
| Net income (loss) | $28.0 | ( | ) | $105.2 | |||||||||||
| Items not affecting cash: | |||||||||||||||
| Depreciation of property, plant and equipment and intangible assets | 34.8 | 25.6 | 115.0 | 95.3 | |||||||||||
| Deferred income tax (benefit) expense | (5.2 | ) | (0.8 | ) | 1.2 | (12.0 | ) | ||||||||
| Pension expense in excess of funding (pension funding in excess of expense) | (1.2 | ) | 1.3 | (0.8 | ) | 49.6 | |||||||||
| Post-employment benefit funding in excess of expense | (2.1 | ) | (1.4 | ) | (7.5 | ) | (4.0 | ) | |||||||
| Unrealized foreign exchange gain (loss) on: | |||||||||||||||
| accrued pension liability | (5.7 | ) | (0.3 | ) | (0.9 | ) | (14.2 | ) | |||||||
| post-employment benefit obligations | (5.8 | ) | 0.2 | (0.7 | ) | (17.7 | ) | ||||||||
| Finance costs | 9.3 | 4.9 | 25.2 | 17.9 | |||||||||||
| Loss on disposal of property, plant and equipment | 0.5 | 0.1 | 0.5 | 0.1 | |||||||||||
| Interest on pension and other post-employment benefit obligations | 4.9 | 4.8 | 19.3 | 17.2 | |||||||||||
| Interest on finance lease | 0.3 | 0.1 | 0.4 | 0.1 | |||||||||||
| Accretion of governmental loans and environmental liabilities | 7.8 | 3.3 | 19.2 | 13.0 | |||||||||||
| Unrealized foreign exchange (gain) loss on government loan facilities | (3.4 | ) | 0.4 | (0.7 | ) | (7.6 | ) | ||||||||
| (Decrease) increase in fair value of warrant liability | (15.3 | ) | 19.4 | (12.1 | ) | (47.7 | ) | ||||||||
| (Decrease) increase in fair value of earnout liability | (3.4 | ) | 3.5 | 0.1 | (5.9 | ) | |||||||||
| (Decrease) increase in fair value of share-based payment compensation liability | (4.8 | ) | 6.9 | 1.2 | (12.7 | ) | |||||||||
| Other | (0.9 | ) | (4.5 | ) | 4.7 | (7.6 | ) | ||||||||
| $37.8 | $269.3 | ||||||||||||||
| Net change in non-cash operating working capital | 84.1 | 52.3 | 33.1 | (178.7 | ) | ||||||||||
| Share-based payment compensation and earnout units settled | - | - | (2.5 | ) | (4.6 | ) | |||||||||
| Environmental liabilities paid | (0.7 | ) | - | (5.0 | ) | (1.7 | ) | ||||||||
| Cash generated by operating activities | $121.2 | $294.9 | |||||||||||||
| Investing activities | |||||||||||||||
| Acquisition of property, plant and equipment | ($120.4 | ) | ( | ) | ($490.1 | ) | ( | ) | |||||||
| Cash used in investing activities | ($120.4 | ) | ( | ) | ($490.1 | ) | ( | ) | |||||||
| Financing activities | |||||||||||||||
| Bank indebtedness (repaid) advanced, net | ($5.1 | ) | ( | ) | ($1.7 | ) | |||||||||
| Transaction costs on bank indebtedness | - | - | (1.7 | ) | |||||||||||
| Governmental loans received | 15.5 | 33.1 | 74.8 | 63.3 | |||||||||||
| Repayment of governmental loans | (2.5 | ) | (2.5 | ) | (10.0 | ) | (10.0 | ) | |||||||
| Interest paid | (0.1 | ) | (0.1 | ) | (0.3 | ) | (0.2 | ) | |||||||
| Dividends paid | (7.1 | ) | (7.1 | ) | (27.9 | ) | (30.7 | ) | |||||||
| Common shares repurchased and cancelled | - | - | - | (553.2 | ) | ||||||||||
| Other | (0.4 | ) | (0.3 | ) | 11.2 | (3.0 | ) | ||||||||
| Cash generated by (used in) financing activities | $0.3 | $44.4 | ( | ) | |||||||||||
| Effect of exchange rate changes on cash | $2.1 | ( | ) | $1.3 | |||||||||||
| Cash | |||||||||||||||
| Increase (decrease) in cash | 3.2 | 2.7 | (149.5 | ) | (667.9 | ) | |||||||||
| Opening balance | 94.7 | 244.7 | 247.4 | 915.3 | |||||||||||
| Ending balance | $97.9 | $97.9 | |||||||||||||
| Algoma Steel Group Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA | |||||||||||||||
| Three months ended March 31, | Year ended March 31, | ||||||||||||||
| millions of dollars | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net income (loss) | $28.0 | ( | ) | $105.2 | |||||||||||
| Depreciation of property, plant and equipment and amortization of intangible assets | 34.8 | 25.6 | 115.0 | 95.3 | |||||||||||
| Finance costs | 9.6 | 4.9 | 25.6 | 17.9 | |||||||||||
| Interest on pension and other post-employment benefit obligations | 4.9 | 4.8 | 19.3 | 17.2 | |||||||||||
| Income taxes | 1.0 | 5.4 | 39.7 | 77.6 | |||||||||||
| Foreign exchange (gain) loss | (15.8 | ) | 0.1 | (1.7 | ) | (41.1 | ) | ||||||||
| Finance income | (1.2 | ) | (2.9 | ) | (10.0 | ) | (13.3 | ) | |||||||
| Inventory write-downs(depreciation on property, plant and equipment in inventory) | (3.9 | ) | (3.8 | ) | (0.5 | ) | 1.1 | ||||||||
| Carbon tax | 6.4 | 2.9 | 24.6 | 7.2 | |||||||||||
| (Decrease) increase in fair value of warrant liability | (15.3 | ) | 19.4 | (12.1 | ) | (47.7 | ) | ||||||||
| (Decrease) increase in fair value of earnout liability | (3.4 | ) | 3.5 | 0.1 | (5.9 | ) | |||||||||
| (Decrease) increase in fair value of share-based payment compensation liability | (4.8 | ) | 6.9 | 1.2 | (12.7 | ) | |||||||||
| Share-based compensation | 1.2 | 1.5 | 6.3 | 4.9 | |||||||||||
| Past service costs - pension benefits | - | - | - | 49.5 | |||||||||||
| Past service costs - post-employment benefits | - | - | - | 3.8 | |||||||||||
| Adjusted EBITDA (i) | $41.5 | $312.7 | |||||||||||||
| Net Income (Loss) Margin | 4.5% | ( | ) | 3.8% | |||||||||||
| Net Income (Loss) / ton | $62.1 | ( | ) | $50.4 | |||||||||||
| Adjusted EBITDA Margin (ii) | 6.7% | 11.2% | |||||||||||||
| Adjusted EBITDA / ton | $92.0 | $149.9 | |||||||||||||
| (i) See "Non-IFRS Financial Measures" in this Press Release for information regarding the limitations of using Adjusted EBITDA. | |||||||||||||||
| (ii) Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue. | |||||||||||||||
For more information, please contact:
Michael Moraca
Treasurer & Investor Relations Officer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com
FAQ
What were Algoma Steel Group's Q4 2024 revenue figures?
How did Algoma Steel Group perform in terms of net income for Q4 2024?
What is the status of Algoma Steel Group's Electric Arc Furnace (EAF) project?
What is the significance of the US$350 million Senior Secured Second Lien Notes issued by Algoma Steel Group?
What impact did the blast furnace shutdown have on Algoma Steel Group's Q4 2024 results?
How did Algoma Steel Group's full year fiscal 2024 revenue compare to the previous year?
What was Algoma Steel Group's Adjusted EBITDA for full year fiscal 2024?
What progress has Algoma Steel Group made on its plate mill modernization project?
What is Algoma Steel Group's Q1 fiscal 2025 outlook?
How did Algoma Steel Group's Q4 2024 cash flows from operations compare to the prior year?
