CMC REPORTS FIRST QUARTER FISCAL 2025 RESULTS
Commercial Metals Company (CMC) reported Q1 fiscal 2025 results with a net loss of ($175.7) million, or ($1.54) per diluted share, primarily due to a $265.0 million litigation expense. Excluding this charge, adjusted earnings were $88.5 million ($0.78 per share), down from $176.3 million ($1.49 per share) in the prior year.
The company generated consolidated core EBITDA of $210.7 million with an 11.0% margin. Despite economic uncertainty affecting construction activity and steel pricing, North America finished steel shipments grew 4.4% year-over-year. CMC maintained strong liquidity with $856.1 million in cash and cash equivalents, while returning $71.0 million to shareholders through dividends and share buybacks.
The company's downstream backlog volumes remained stable year-over-year, with management expressing optimism about future project pipeline strength. The board declared a quarterly dividend of $0.18 per share, representing a 13% year-over-year increase.
Commercial Metals Company (CMC) ha riportato i risultati del primo trimestre dell'anno fiscale 2025 con una perdita netta di ($175.7) milioni, ovvero ($1.54) per azione diluita, principalmente a causa di una spesa legale di $265.0 milioni. Escludendo questa voce, gli utili rettificati sono stati di $88.5 milioni ($0.78 per azione), in diminuzione rispetto ai $176.3 milioni ($1.49 per azione) dell'anno precedente.
L'azienda ha generato un EBITDA core consolidato di $210.7 milioni con un margine dell'11.0%. Nonostante l'incertezza economica che ha influenzato l'attività edilizia e i prezzi dell'acciaio, le spedizioni di acciaio finito in Nord America sono aumentate del 4.4% rispetto all'anno precedente. CMC ha mantenuto una forte liquidità con $856.1 milioni in contante e equivalenti, restituendo $71.0 milioni agli azionisti attraverso dividendi e riacquisti di azioni.
I volumi di lavoro in coda dell'azienda sono rimasti stabili rispetto all'anno precedente, con la direzione che ha espresso ottimismo riguardo alla solidità del futuro portafoglio di progetti. Il consiglio di amministrazione ha dichiarato un dividendo trimestrale di $0.18 per azione, che rappresenta un aumento del 13% rispetto allo stesso periodo dell'anno precedente.
Commercial Metals Company (CMC) reportó resultados del primer trimestre del año fiscal 2025 con una pérdida neta de ($175.7) millones, o ($1.54) por acción diluida, principalmente debido a un gasto de litigio de $265.0 millones. Excluyendo este cargo, las ganancias ajustadas fueron de $88.5 millones ($0.78 por acción), en comparación con los $176.3 millones ($1.49 por acción) del año anterior.
La compañía generó un EBITDA consolidado básico de $210.7 millones con un margen del 11.0%. A pesar de la incertidumbre económica que afecta la actividad de construcción y los precios del acero, los despachos de acero terminado en América del Norte crecieron un 4.4% en comparación con el año anterior. CMC mantuvo una sólida liquidez con $856.1 millones en efectivo y equivalentes, mientras devolvía $71.0 millones a los accionistas a través de dividendos y recompra de acciones.
Los volúmenes de backlog downstream de la compañía se mantuvieron estables en comparación con el año anterior, con la gerencia expresando optimismo sobre la fortaleza de la futura cartera de proyectos. La junta declaró un dividendo trimestral de $0.18 por acción, lo que representa un aumento del 13% en comparación con el año anterior.
상업 금속 회사 (CMC)는 2025 회계연도 1분기 결과를 보고하였으며, 순손실은 ($175.7) 백만 달러, 즉 희석주당 ($1.54)로, 주로 $265.0 백만 달러의 소송 비용 때문에 발생했습니다. 이 항목을 제외하면 조정 후 수익은 $88.5 백만 달러($0.78 per 주식)로, 전년의 $176.3 백만 달러($1.49 per 주식)에서 감소했습니다.
회사는 11.0%의 마진으로 $210.7 백만 달러의 통합 핵심 EBITDA를 생성했습니다. 건설 활동 및 철강 가격에 영향을 주는 경제적 불확실성에도 불구하고, 북미의 완제품 철강 출하량은 전년 대비 4.4% 증가했습니다. CMC는 $856.1 백만 달러의 현금 및 현금성 자산으로 강력한 유동성을 유지하고 있으며, 배당금 및 자사주 매입을 통해 주주에게 $71.0 백만 달러를 반환했습니다.
회사의 다운스트림 잔고량은 전년 대비 안정적으로 유지되었으며, 경영진은 향후 프로젝트 파이프라인의 강도에 대해 낙관적인 입장을 보였습니다. 이사회는 주당 $0.18의 분기 배당금을 선언했으며, 이는 전년 대비 13% 증가한 수치입니다.
Commercial Metals Company (CMC) a publié ses résultats du premier trimestre de l'exercice 2025, affichant une perte nette de ($175.7) millions, soit ($1.54) par action diluée, principalement en raison d'une dépense de litige de $265.0 millions. En excluant cette charge, le résultat net ajusté était de $88.5 millions ($0.78 par action), en baisse par rapport à $176.3 millions ($1.49 par action) l'année précédente.
La société a généré un EBITDA consolidé de base de $210.7 millions avec une marge de 11.0%. Malgré l'incertitude économique affectant l'activité de construction et les prix de l'acier, les expéditions d'acier terminé en Amérique du Nord ont augmenté de 4.4% d'une année sur l'autre. CMC a maintenu une solide liquidité avec $856.1 millions de liquidités et équivalents, tout en retournant $71.0 millions aux actionnaires par le biais de dividendes et de rachats d'actions.
Les volumes des stocks en aval de l'entreprise sont restés stables d'une année sur l'autre, l'équipe de direction exprimant de l'optimisme quant à la robustesse du pipeline de projets futurs. Le conseil d'administration a déclaré un dividende trimestriel de $0.18 par action, représentant une augmentation de 13% par rapport à l'année précédente.
Commercial Metals Company (CMC) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2025 veröffentlicht, mit einem Nettoverlust von ($175.7) Millionen, oder ($1.54) pro verwässerter Aktie, was hauptsächlich auf eine Rechtskosten von $265.0 Millionen zurückzuführen ist. Ohne diese Belastung betrugen die bereinigten Erträge $88.5 Millionen ($0.78 pro Aktie), ein Rückgang gegenüber $176.3 Millionen ($1.49 pro Aktie) im Vorjahr.
Das Unternehmen generierte ein konsolidiertes Kern-EBITDA von $210.7 Millionen bei einer Marge von 11.0%. Trotz wirtschaftlicher Unsicherheit, die die Bautätigkeit und die Stahlpreise beeinflusst, stiegen die Versandmengen von Fertigstahl in Nordamerika im Jahresvergleich um 4.4%. CMC bewahrte eine starke Liquidität mit $856.1 Millionen an Cash und Cashäquivalenten und gab $71.0 Millionen an die Aktionäre in Form von Dividenden und Aktienrückkäufen zurück.
Die Auftragsbestände im downstream-Bereich des Unternehmens blieben im Jahresvergleich stabil, wobei das Management Optimismus bezüglich der Stärke der zukünftigen Projektpipeline äußerte. Der Vorstand erklärte eine vierteljährliche Dividende von $0.18 pro Aktie, was einer Steigerung von 13% im Jahresvergleich entspricht.
- Operating cash flow of $213.0 million, representing 101% of core EBITDA
- 4.4% increase in North America finished steel shipments
- Strong liquidity position with $856.1 million cash and $1.7 billion available liquidity
- 13% increase in quarterly dividend
- Net loss of $175.7 million due to $265.0 million litigation expense
- Adjusted earnings declined 50% YoY from $1.49 to $0.78 per share
- North America Steel Group EBITDA margin declined from 16.8% to 12.4%
- European shipment volumes declined 9%
- Management expects Q2 FY2025 results to decline from Q1 levels
Insights
The Q1 FY2025 results paint a challenging picture for CMC. The headline
The balance sheet remains solid with
Looking ahead, management's cautious Q2 guidance suggests continued pressure on margins and seasonal volume declines, though the longer-term outlook remains constructive with healthy construction pipelines and improving business sentiment.
The market dynamics reveal a complex landscape. North American operations show resilience with late-season construction activity driving volume growth, but pricing power remains constrained. The European segment continues to face structural challenges, with long-steel consumption below historical norms and increased import competition, though cost management initiatives are providing some offset.
The Transform, Advance and Grow (TAG) program represents a strategic pivot toward operational excellence, targeting higher through-cycle margins. Early implementation results are promising, suggesting potential upside in FY2025. The stable downstream backlog and positive Dodge Momentum Index readings indicate healthy underlying demand fundamentals, despite current economic uncertainties.
The
- First quarter net loss of
( , or ($175.7) million $1.54 $265.0 million $88.5 million $0.78 - Consolidated core EBITDA of
$210.7 million 11.0% - Late season construction activity drove year-over-year and sequential growth in
North America finished steel shipment volumes; margins pressured by declines in average steel and downstream product pricing North America downstream backlog volumes stable on a year-over-year basis; pipeline of potential future projects remains strong- Continued disciplined execution of strategic growth plan, including organic growth investments and operational and commercial excellence program ("TAG"), which are expected to provide financial benefits in fiscal 2025
- Generated
$213.0 million 101% of consolidated core EBITDA; returned$71.0 million
During the first quarter of fiscal 2025, the Company recorded an estimated net after-tax charge of
Peter Matt, President and Chief Executive Officer, said, "The CMC team executed well across multiple fronts during the first quarter, including a near-record safety performance and effective cost management across our operational footprint. Financial results continued to be hindered by economic uncertainty that has weighed on new construction activity, pressuring steel pricing and margins. We remain confident that this weaker demand environment will be temporary as we expect the underlying drivers across infrastructure, non-residential and residential end markets will provide multiyear support for our business. Our downstream bid levels and several key external indicators continue to evidence a robust pipeline of potential future projects that should translate into construction activity in the coming quarters."
Mr. Matt added, "I am encouraged by the progress being made in the implementation of our operational and commercial excellence program - Transform, Advance, and Grow (TAG). This effort is a key component of our long-term strategic plan and is expected to drive value creation by helping CMC to achieve higher through-the-cycle margins and enhanced efficiencies across the organization. We are seeing strong early results from several recently launched TAG initiatives, which give me confidence that the program will begin to provide financial benefits in fiscal 2025."
The Company's balance sheet and liquidity position remained strong. As of November 30, 2024, cash and cash equivalents totaled
On January 2, 2025, the board of directors declared a quarterly dividend of
Business Segments - Fiscal First Quarter 2025 Review
Demand for CMC's products in
Adjusted EBITDA for the North America Steel Group decreased to
European market conditions in the first quarter were similar to recent periods. Long-steel consumption remained substantially below historical levels. The beneficial impact of improving Polish demand in certain end market applications and regional supply discipline has been largely offset by increased import flows from neighboring nations that have sought an outlet for product not consumed within their home markets. The Europe Steel Group reported adjusted EBITDA of
Emerging Businesses Group first quarter net sales of
During the first quarter, a jury in
Outlook
Mr. Matt said, "We expect consolidated financial results in our second quarter of fiscal 2025 to decline from the first quarter level. Finished steel shipments within the North America Steel Group are anticipated to follow normal seasonal trends, while adjusted EBITDA margin is expected to decrease sequentially on lower margins over scrap cost on steel and downstream products. Adjusted EBITDA for our Europe Steel Group should be in line with the prior year second quarter as stringent cost management efforts continue to offset a weak market environment. Financial results for the Emerging Businesses Group are anticipated to be impacted by normal seasonality."
Mr. Matt concluded, "We are very encouraged by our recent conversations with customers and the optimism they have voiced about the coming quarters. Key indicators of the construction pipeline also point in a positive direction. Outside of construction, measures of both big and small business confidence have improved significantly over the last two months. The palpable shift in sentiment gives us confidence that current softness is transient and that we should soon enter a period of renewed strength in our core markets."
Conference Call
CMC invites you to listen to a live broadcast of its first quarter fiscal 2025 conference call today, Monday, January 6, 2025, at 11:00 a.m. ET. 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
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 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, growth rates in certain reportable segments, product margins within our Emerging Businesses Group segment, share repurchases, legal proceedings, construction activity, international trade, the impact of geopolitical conditions, 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 anticipated benefits and timeline for execution of our growth plan and initatives 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, 2024, 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 downstream contracts within our vertically integrated steel operations due to rising commodity pricing; excess capacity in our industry, particularly in
COMMERCIAL METALS COMPANY AND SUBSIDIARIES FINANCIAL & OPERATING STATISTICS (UNAUDITED) | ||||||||||
Three Months Ended | ||||||||||
(in thousands, except per ton amounts) | 11/30/2024 | 8/31/2024 | 5/31/2024 | 2/29/2024 | 11/30/2023 | |||||
North America Steel Group | ||||||||||
Net sales to external customers | ||||||||||
Adjusted EBITDA | 188,205 | 210,932 | 246,304 | 222,294 | 266,820 | |||||
Adjusted EBITDA margin | 12.4 % | 13.5 % | 14.7 % | 15.0 % | 16.8 % | |||||
External tons shipped | ||||||||||
Raw materials | 339 | 360 | 371 | 347 | 374 | |||||
Rebar | 549 | 522 | 520 | 460 | 522 | |||||
Merchant bar and other | 241 | 237 | 244 | 234 | 230 | |||||
Steel products | 790 | 759 | 764 | 694 | 752 | |||||
Downstream products | 356 | 361 | 371 | 316 | 346 | |||||
Average selling price per ton | ||||||||||
Raw materials | $ 874 | $ 866 | $ 970 | $ 880 | $ 783 | |||||
Steel products | 812 | 843 | 891 | 905 | 892 | |||||
Downstream products | 1,259 | 1,311 | 1,330 | 1,358 | 1,389 | |||||
Cost of raw materials per ton | $ 677 | $ 664 | $ 717 | $ 658 | $ 578 | |||||
Cost of ferrous scrap utilized per ton | $ 323 | $ 321 | $ 353 | $ 379 | $ 343 | |||||
Steel products metal margin per ton | $ 489 | $ 522 | $ 538 | $ 526 | $ 549 | |||||
Europe Steel Group | ||||||||||
Net sales to external customers | $ 209,407 | $ 222,085 | $ 208,806 | $ 192,500 | $ 225,175 | |||||
Adjusted EBITDA | 25,839 | (3,622) | (4,192) | (8,611) | 38,942 | |||||
Adjusted EBITDA margin | 12.3 % | (1.6) % | (2.0) % | (4.5) % | 17.3 % | |||||
External tons shipped | ||||||||||
Rebar | 107 | 98 | 80 | 64 | 122 | |||||
Merchant bar and other | 206 | 221 | 217 | 211 | 221 | |||||
Steel products | 313 | 319 | 297 | 275 | 343 | |||||
Average selling price per ton | ||||||||||
Steel products | $ 639 | $ 667 | $ 681 | $ 673 | $ 633 | |||||
Cost of ferrous scrap utilized per ton | $ 370 | $ 383 | $ 389 | $ 394 | $ 365 | |||||
Steel products metal margin per ton | $ 269 | $ 284 | $ 292 | $ 279 | $ 268 | |||||
Emerging Businesses Group | ||||||||||
Net sales to external customers | $ 169,415 | $ 195,571 | $ 188,593 | $ 155,994 | $ 177,239 | |||||
Adjusted EBITDA | 22,660 | 42,519 | 38,220 | 17,929 | 30,862 | |||||
Adjusted EBITDA margin | 13.4 % | 21.7 % | 20.3 % | 11.5 % | 17.4 % | |||||
COMMERCIAL METALS COMPANY AND SUBSIDIARIES BUSINESS SEGMENTS (UNAUDITED) | ||||||||||
Three Months Ended | ||||||||||
(in thousands) | 11/30/2024 | 8/31/2024 | 5/31/2024 | 2/29/2024 | 11/30/2023 | |||||
Net sales to external customers | ||||||||||
North America Steel Group | ||||||||||
Europe Steel Group | 209,407 | 222,085 | 208,806 | 192,500 | 225,175 | |||||
Emerging Businesses Group | 169,415 | 195,571 | 188,593 | 155,994 | 177,239 | |||||
Corporate and Other | 12,143 | 18,973 | 9,728 | 13,591 | 7,987 | |||||
Total net sales to external customers | ||||||||||
Adjusted EBITDA | ||||||||||
North America Steel Group | $ 188,205 | $ 210,932 | $ 246,304 | $ 222,294 | $ 266,820 | |||||
Europe Steel Group | 25,839 | (3,622) | (4,192) | (8,611) | 38,942 | |||||
Emerging Businesses Group | 22,660 | 42,519 | 38,220 | 17,929 | 30,862 | |||||
Corporate and Other | (386,245) | (25,189) | (37,070) | (34,512) | (30,987) | |||||
Total adjusted EBITDA | $ (149,541) | $ 224,640 | $ 243,262 | $ 197,100 | $ 305,637 | |||||
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) (UNAUDITED) | ||||
Three Months Ended November 30, | ||||
(in thousands, except share and per share data) | 2024 | 2023 | ||
Net sales | $ 1,909,602 | $ 2,003,051 | ||
Costs and operating expenses: | ||||
Cost of goods sold | 1,601,722 | 1,604,068 | ||
Selling, general and administrative expenses | 177,858 | 162,532 | ||
Interest expense | 11,322 | 11,756 | ||
Litigation expense | 350,000 | — | ||
Net costs and operating expenses | 2,140,902 | 1,778,356 | ||
Earnings (loss) before income taxes | (231,300) | 224,695 | ||
Income tax expense (benefit) | (55,582) | 48,422 | ||
Net earnings (loss) | $ (175,718) | $ 176,273 | ||
Earnings (loss) per share: | ||||
Basic | $ (1.54) | $ 1.51 | ||
Diluted | (1.54) | 1.49 | ||
Cash dividends per share | $ 0.18 | $ 0.16 | ||
Average basic shares outstanding | 114,053,455 | 116,771,939 | ||
Average diluted shares outstanding | 114,053,455 | 118,354,913 | ||
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||
(in thousands, except share and per share data) | November 30, 2024 | August 31, 2024 | ||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | $ 856,104 | $ 857,922 | ||
Accounts receivable (less allowance for doubtful accounts of | 1,106,139 | 1,158,946 | ||
Inventories, net | 960,088 | 971,755 | ||
Prepaid and other current assets | 294,588 | 285,489 | ||
Assets held for sale | 1,204 | 18,656 | ||
Total current assets | 3,218,123 | 3,292,768 | ||
Property, plant and equipment, net | 2,612,836 | 2,577,136 | ||
Intangible assets, net | 227,153 | 234,869 | ||
Goodwill | 384,249 | 385,630 | ||
Other noncurrent assets | 330,038 | 327,436 | ||
Total assets | $ 6,772,399 | $ 6,817,839 | ||
Liabilities and stockholders' equity | ||||
Current liabilities: | ||||
Accounts payable | $ 323,492 | $ 350,550 | ||
Accrued contingent litigation-related loss | 350,000 | — | ||
Other accrued expenses and payables | 453,377 | 445,514 | ||
Current maturities of long-term debt | 38,561 | 38,786 | ||
Total current liabilities | 1,165,430 | 834,850 | ||
Deferred income taxes | 200,056 | 276,908 | ||
Other noncurrent liabilities | 243,080 | 255,222 | ||
Long-term debt | 1,148,536 | 1,150,835 | ||
Total liabilities | 2,757,102 | 2,517,815 | ||
Stockholders' equity: | ||||
Common stock, par value | 1,290 | 1,290 | ||
Additional paid-in capital | 384,782 | 407,232 | ||
Accumulated other comprehensive loss | (121,855) | (85,952) | ||
Retained earnings | 4,307,613 | 4,503,885 | ||
Less treasury stock, 15,141,513 and 14,956,607 shares at cost | (556,781) | (526,679) | ||
Stockholders' equity | 4,015,049 | 4,299,776 | ||
Stockholders' equity attributable to non-controlling interests | 248 | 248 | ||
Total stockholders' equity | 4,015,297 | 4,300,024 | ||
Total liabilities and stockholders' equity | $ 6,772,399 | $ 6,817,839 | ||
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | ||||
Three Months Ended November 30, | ||||
(in thousands) | 2024 | 2023 | ||
Cash flows from (used by) operating activities: | ||||
Net earnings (loss) | $ (175,718) | $ 176,273 | ||
Adjustments to reconcile net earnings (loss) to net cash flows from operating activities: | ||||
Depreciation and amortization | 70,437 | 69,186 | ||
Stock-based compensation | 10,232 | 8,059 | ||
Write-down of inventory | 8,950 | 10,655 | ||
Deferred income taxes and other long-term taxes | (76,940) | 21,343 | ||
Litigation expense | 350,000 | — | ||
Other | (185) | 1,102 | ||
Changes in operating assets and liabilities | 26,248 | (25,558) | ||
Net cash flows from operating activities | 213,024 | 261,060 | ||
Cash flows from (used by) investing activities: | ||||
Capital expenditures | (118,187) | (66,991) | ||
Proceeds from the sale of property, plant and equipment | 5,167 | — | ||
Other | (467) | 518 | ||
Net cash flows used by investing activities | (113,487) | (66,473) | ||
Cash flows from (used by) financing activities: | ||||
Repayments of long-term debt | (10,940) | (9,276) | ||
Debt issuance costs | (38) | — | ||
Proceeds from accounts receivable facilities | 13,303 | 9,421 | ||
Repayments under accounts receivable facilities | (13,303) | (17,471) | ||
Treasury stock acquired | (50,417) | (28,408) | ||
Tax withholdings related to share settlements, net of purchase plans | (19,560) | (19,535) | ||
Dividends | (20,554) | (18,748) | ||
Net cash flows used by financing activities | (101,509) | (84,017) | ||
Effect of exchange rate changes on cash | (695) | 819 | ||
Increase (decrease) in cash, restricted cash, and cash equivalents | (2,667) | 111,389 | ||
Cash, restricted cash and cash equivalents at beginning of period | 859,555 | 595,717 | ||
Cash, restricted cash and cash equivalents at end of period | $ 856,888 | $ 707,106 | ||
Supplemental information: | ||||
Cash paid (refund received) for income taxes | $ (3,031) | $ 1,398 | ||
Cash paid for interest | 11,270 | 10,888 | ||
Cash and cash equivalents | $ 856,104 | $ 704,603 | ||
Restricted cash | 784 | 2,503 | ||
Total cash, restricted cash and cash equivalents | $ 856,888 | $ 707,106 | ||
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
This press release contains financial measures not derived in accordance with
Adjusted EBITDA, core EBITDA, core EBITDA margin and adjusted earnings are non-GAAP financial measures. Adjusted earnings per diluted share is defined as adjusted earnings on a diluted per share basis. Core EBITDA margin is defined as core EBITDA divided by net sales. The adjustment "Settlement of New Markets Tax Credit transactions" represents the recognition of deferred revenue from 2016 and 2017 resulting from the Company's participation in the New Markets Tax Credit program provided for in the Community Renewal Tax Relief Act of 2000 during the development of a micro mill, spooler and T-post shop located in eligible zones as determined by the Internal Revenue Service. In prior periods, the Company included within the definition of core EBITDA, core EBITDA margin, adjusted earnings and adjusted earnings per diluted share an adjustment for "Mill operational commissioning costs" related to the Company's third micro mill, which was placed into service during the fourth quarter of fiscal 2023. Periods commencing subsequent to February 29, 2024 no longer include an adjustment for mill operational commissioning costs. Accordingly, the Company has recast core EBITDA, core EBITDA margin, adjusted earnings and adjusted earnings per diluted share for all prior periods to conform to this presentation.
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 (loss) to adjusted EBITDA and core EBITDA is provided below:
Three Months Ended | ||||||||||
(in thousands) | 11/30/2024 | 8/31/2024 | 5/31/2024 | 2/29/2024 | 11/30/2023 | |||||
Net earnings (loss) | $ (175,718) | $ 103,931 | $ 119,440 | $ 85,847 | $ 176,273 | |||||
Interest expense | 11,322 | 12,142 | 12,117 | 11,878 | 11,756 | |||||
Income tax expense (benefit) | (55,582) | 29,819 | 40,867 | 31,072 | 48,422 | |||||
Depreciation and amortization | 70,437 | 72,190 | 70,692 | 68,299 | 69,186 | |||||
Asset impairments | — | 6,558 | 146 | 4 | — | |||||
Adjusted EBITDA | (149,541) | 224,640 | 243,262 | 197,100 | 305,637 | |||||
Non-cash equity compensation | 10,232 | 9,173 | 12,846 | 14,988 | 8,059 | |||||
Settlement of New Markets Tax Credit transactions | — | (6,748) | — | — | — | |||||
Litigation expense | 350,000 | $ — | $ — | $ — | $ — | |||||
Core EBITDA | $ 210,691 | $ 227,065 | $ 256,108 | $ 212,088 | $ 313,696 | |||||
Net sales | $ 1,909,602 | $ 1,996,149 | $ 2,078,485 | $ 1,848,287 | $ 2,003,051 | |||||
Core EBITDA margin | 11.0 % | 11.4 % | 12.3 % | 11.5 % | 15.7 % | |||||
A reconciliation of net earnings (loss) to adjusted earnings is provided below:
Three Months Ended | ||||||||||
(in thousands, except per share data) | 11/30/2024 | 8/31/2024 | 5/31/2024 | 2/29/2024 | 11/30/2023 | |||||
Net earnings (loss) | $ (175,718) | $ 85,847 | $ 176,273 | |||||||
Asset impairments | — | 6,558 | 146 | 4 | — | |||||
Settlement of New Markets Tax Credit transactions | — | (6,748) | — | — | — | |||||
Litigation expense | 350,000 | — | — | — | — | |||||
Total adjustments (pre-tax) | $ (190) | $ 146 | $ 4 | $ — | ||||||
Related tax effects on adjustments | (85,750) | 40 | (31) | (1) | — | |||||
Adjusted earnings | $ 88,532 | $ 85,850 | $ 176,273 | |||||||
Net earnings (loss) per diluted share | $ (1.54) | $ 0.90 | $ 1.02 | $ 0.73 | $ 1.49 | |||||
Adjusted earnings per diluted share | $ 0.78 | $ 0.90 | $ 1.02 | $ 0.73 | $ 1.49 | |||||
View original content:https://www.prnewswire.com/news-releases/cmc-reports-first-quarter-fiscal-2025-results-302342730.html
SOURCE Commercial Metals Company
FAQ
What caused CMC's Q1 2025 net loss of $175.7 million?
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