Radius Recycling Reports First Quarter Fiscal 2024 Financial Results
- None.
- The company reported a net loss of $(18) million and a loss per share of $(0.64) from continuing operations for the first quarter of fiscal 2024.
- Operating performance in the first quarter reflected sequentially tighter supply flows for recycled metals and lower average net selling prices for the company’s products.
- The first quarter average net selling prices for ferrous, nonferrous, and finished steel products were lower sequentially by 1%, 3%, and 3%, respectively.
Insights
The reported financial results of Schnitzer Steel Industries, Inc. indicate significant market pressures, with a reported net loss and a decrease in adjusted EBITDA. This performance suggests a challenging environment for the metals recycling industry, reflecting broader economic trends such as decreased manufacturing activity in the U.S. and economic slowdown in China. The increased Chinese steel exports have likely contributed to a global oversupply, exerting downward pressure on prices.
The reported increase in nonferrous sales volumes, attributed to the company's advanced recovery technologies and strategic acquisitions, demonstrates a potential growth area. However, the overall decline in selling prices for ferrous, nonferrous and finished steel products highlights the volatility and price sensitivity within the sector. Investors may be concerned about the company's ability to maintain profitability in the face of such market dynamics.
The company's focus on productivity improvements and cost management, along with its commitment to sustainability, could be seen as strategic initiatives to mitigate the impact of adverse market conditions. The emphasis on decarbonization and low-carbon technologies aligns with global trends towards sustainability, which may offer long-term strategic advantages.
Schnitzer Steel Industries' financials reflect a tight liquidity situation, with nearly break-even operating cash flow and a total debt of $284 million. The effective tax rate benefit on GAAP results, juxtaposed with the tax expense on adjusted non-GAAP results, might require further scrutiny from stakeholders to understand the underlying tax positions and potential future liabilities.
Despite the challenging market conditions, the company's ability to maintain a high mill utilization rate and increase finished steel sales volumes year-over-year indicates strong operational management. The strategic investments in productivity and advanced metal recovery technologies are likely to enhance operational efficiency and could be crucial in weathering the current industry downturn.
Furthermore, the consistent payment of dividends, including the recent declaration, reflects the company's commitment to shareholder returns, which could be a positive signal to investors looking for stable income streams amidst market volatility. However, the sustainability of these dividends in the face of reported net losses may raise questions about the company's long-term financial strategy.
The release of Schnitzer Steel Industries' tenth annual Sustainability Report highlights the company's proactive approach to environmental responsibility. Achieving greenhouse gas emissions reduction targets ahead of schedule and maintaining 100% net carbon-free electricity usage are commendable milestones that align with investor interest in sustainable and responsible business practices.
The focus on advancing the circular economy through metal recovery and recycling is particularly relevant in the context of global decarbonization efforts. As regulatory pressures and consumer demand for sustainable products increase, the company's strategic positioning may provide a competitive edge. The long-term demand for recycled metals is expected to grow, potentially benefiting companies like Schnitzer Steel that are already investing in relevant technologies and processes.
However, the financial impact of these sustainability initiatives should be monitored closely. While they may lead to long-term benefits, the upfront costs and investments required for such programs could strain financial resources, especially during periods of market contraction as indicated by the current financial results.
Ferrous, Nonferrous and Finished Steel Sales Volumes Up Year-Over-Year
Radius Board Declares Quarterly Dividend
The Company reported a loss per share from continuing operations of
Operating performance in the first quarter reflected sequentially tighter supply flows for recycled metals, which, together with lower average net selling prices for the Company’s products, resulted in a compression of metal spreads. Market conditions for recycled metals remained challenging during the quarter, primarily due to lower manufacturing activity in the
Nonferrous production from the Company’s advanced nonferrous recovery technologies and from an acquisition made in fiscal 2023 contributed to a
Tamara Lundgren, Chairman and Chief Executive Officer, said, “While the current market environment is challenging, we have demonstrated our ability to navigate effectively through periods of volatility and tight scrap availability by focusing on what we can control. This includes higher nonferrous volumes from our strategic investments and delivering on our
Ms. Lundgren continued, “Last month, we issued our tenth annual Sustainability Report, which details our work to advance the circular economy through the recovery, reuse, and recycling of the essential metals required to support global decarbonization efforts. The report showcases the progress towards our multi-year sustainability goals, including achieving our greenhouse gas emissions reduction target two years ahead of schedule. Additionally, we maintained our goal of
Summary Results |
|
|
|
|
|
|
|
|
|
|||
($ in millions, except per share and per ferrous ton amounts) |
|
|
|
|
|
|
|
|
|
|||
|
|
Quarter |
|
|||||||||
|
|
1Q24 |
|
|
4Q23 |
|
|
1Q23 |
|
|||
Revenues |
|
$ |
673 |
|
|
$ |
718 |
|
|
$ |
599 |
|
Gross margin |
|
$ |
39 |
|
|
$ |
90 |
|
|
$ |
49 |
|
Selling, general and administrative expense |
|
$ |
63 |
|
|
$ |
69 |
|
|
$ |
64 |
|
Net loss |
|
$ |
(18 |
) |
|
$ |
(26 |
) |
|
$ |
(18 |
) |
Net loss per ferrous ton |
|
$ |
(15 |
) |
|
$ |
(23 |
) |
|
$ |
(21 |
) |
Diluted loss per share from continuing operations attributable to Radius shareholders |
|
|
|
|
|
|
|
|
|
|||
Reported |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Adjusted(1) |
|
$ |
(0.64 |
) |
|
$ |
0.47 |
|
|
$ |
(0.44 |
) |
Adjusted EBITDA(1) |
|
$ |
1 |
|
|
$ |
49 |
|
|
$ |
8 |
|
Adjusted EBITDA per ferrous ton(1) (4) |
|
$ |
1 |
|
|
$ |
44 |
|
|
$ |
10 |
|
Cash flows from operating activities |
|
$ |
(1 |
) |
|
$ |
135 |
|
|
$ |
(62 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Ferrous sales volumes (LT, in thousands) |
|
|
1,152 |
|
|
|
1,105 |
|
|
|
851 |
|
Avg. net ferrous sales prices ($/LT)(2) |
|
$ |
354 |
|
|
$ |
357 |
|
|
$ |
340 |
|
Nonferrous sales volumes (pounds, in millions)(3) |
|
|
182 |
|
|
|
204 |
|
|
|
163 |
|
Avg. nonferrous sales prices ($/pound)(2)(3) |
|
$ |
0.91 |
|
|
$ |
0.94 |
|
|
$ |
0.90 |
|
Finished steel average net sales price ($/ST)(2) |
|
$ |
831 |
|
|
$ |
861 |
|
|
$ |
1,015 |
|
Finished steel sales volumes (ST, in thousands) |
|
129 |
|
|
152 |
|
|
|
118 |
|
||
Rolling mill utilization (%) |
|
|
95 |
% |
|
|
102 |
% |
|
|
81 |
% |
LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds
(1) |
|
See Non-GAAP Financial Measures for reconciliation to |
(2) |
|
Price information is shown after netting the cost of freight incurred to deliver the product to the customer. |
(3) |
|
Nonferrous sales volumes and average nonferrous prices excludes platinum group metals (“PGMs”) in catalytic converters. |
(4) |
|
May not foot due to rounding. |
First Quarter Fiscal 2024 Financial Review and Analysis
First quarter average net selling prices for ferrous, nonferrous, and finished steel products were lower sequentially by
First quarter performance reflected initial benefits of approximately half the quarterly run rate associated with the
The first quarter had nearly break-even operating cash flow, benefiting from working capital management despite the typical seasonality headwinds. Total debt was
The effective tax rate for the first quarter was a benefit of approximately
Declaration of Quarterly Dividend
The Board of Directors declared a cash dividend of
Analysts’ Conference Call: First Quarter Fiscal 2024 Results
A conference call and slide presentation to discuss results will be held today, January 4, 2024, at 11:30 a.m. Eastern and will be hosted by Tamara Lundgren, Chairman and Chief Executive Officer, and Stefano Gaggini, Senior Vice President and Chief Financial Officer. The call and accompanying slide presentation will be webcast and accessible under the Events Calendar on the Company’s website at: www.radiusrecycling.com/company/investors. Summary financial data is provided in the following pages. The slide presentation and related materials will be available prior to the call on the Company's website.
About Schnitzer Steel Industries, Inc. dba Radius Recycling
Schnitzer Steel Industries, Inc. dba Radius Recycling is one of the largest manufacturers and exporters of recycled metal products in
SCHNITZER STEEL INDUSTRIES, INC. dba RADIUS RECYCLING CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per share amounts) (Unaudited) |
||||||||||||
|
|
Three Months Ended |
||||||||||
|
|
November 30, 2023 |
|
August 31, 2023 |
|
November 30, 2022 |
||||||
Revenues |
|
$ |
672,897 |
|
|
$ |
717,931 |
|
|
$ |
598,730 |
|
Cost of goods sold |
|
|
633,420 |
|
|
|
627,880 |
|
|
|
550,011 |
|
Selling, general and administrative expense |
|
|
63,102 |
|
|
|
69,217 |
|
|
|
64,228 |
|
Income from joint ventures |
|
|
(673 |
) |
|
|
(704 |
) |
|
|
(790 |
) |
Goodwill impairment charges |
|
|
— |
|
|
|
39,270 |
|
|
— |
|
|
Other asset impairment charges |
|
|
— |
|
|
|
5,797 |
|
|
— |
|
|
Restructuring charges and other exit-related activities |
|
|
35 |
|
|
|
141 |
|
|
|
1,592 |
|
Operating loss |
|
|
(22,987 |
) |
|
|
(23,670 |
) |
|
|
(16,311 |
) |
Interest expense |
|
|
(4,810 |
) |
|
|
(5,211 |
) |
|
|
(3,324 |
) |
Other loss, net |
|
|
(170 |
) |
|
|
(273 |
) |
|
|
(3,884 |
) |
Loss from continuing operations before income taxes |
|
|
(27,967 |
) |
|
|
(29,154 |
) |
|
|
(23,519 |
) |
Income tax benefit |
|
|
10,170 |
|
|
|
3,423 |
|
|
|
6,032 |
|
Loss from continuing operations |
|
|
(17,797 |
) |
|
|
(25,731 |
) |
|
|
(17,487 |
) |
Loss from discontinued operations, net of tax |
|
|
(2 |
) |
|
|
(31 |
) |
|
|
(69 |
) |
Net loss |
|
|
(17,799 |
) |
|
|
(25,762 |
) |
|
|
(17,556 |
) |
Net income attributable to noncontrolling interests |
|
|
(165 |
) |
|
|
(54 |
) |
|
|
(232 |
) |
Net loss attributable to Radius shareholders |
|
$ |
(17,964 |
) |
|
$ |
(25,816 |
) |
|
$ |
(17,788 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Net loss per share attributable to Radius shareholders: |
|
|
|
|
|
|
|
|
|
|||
Basic: |
|
|
|
|
|
|
|
|
|
|||
Loss per share from continuing operations |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Net loss per share |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Diluted: |
|
|
|
|
|
|
|
|
|
|||
Loss per share from continuing operations |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Net loss per share |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Weighted average number of common shares: |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
28,219 |
|
|
|
28,108 |
|
|
|
27,723 |
|
Diluted |
|
|
28,219 |
|
|
|
28,108 |
|
|
|
27,723 |
|
Dividends declared per common share |
|
$ |
0.1875 |
|
|
$ |
0.1875 |
|
|
$ |
0.1875 |
|
| SCHNITZER STEEL INDUSTRIES, INC. dba RADIUS RECYCLING
SELECTED OPERATING STATISTICS (Unaudited) |
|||
|
|
|
|
|
1Q24 |
|
|
Total ferrous volumes (LT, in thousands)(1) |
|
1,152 |
|
Total nonferrous volumes (pounds, in thousands)(1)(2) |
|
181,728 |
|
Ferrous selling prices ($/LT)(3) |
|
|
|
Domestic |
$ |
342 |
|
Foreign |
$ |
359 |
|
Average |
$ |
354 |
|
Ferrous sales volume (LT, in thousands) |
|
|
|
Domestic |
|
535 |
|
Foreign |
|
617 |
|
Total |
|
1,152 |
|
Nonferrous average price ($/pound)(2)(3) |
$ |
0.91 |
|
Cars purchased (in thousands)(4) |
|
64 |
|
Auto stores at period end |
|
50 |
|
Finished steel average sales price ($/ST)(3) |
$ |
831 |
|
Sales volume (ST, in thousands) |
|
|
|
Rebar |
|
94 |
|
Coiled products |
|
34 |
|
Merchant bar and other |
|
1 |
|
Finished steel products sold |
|
129 |
|
Rolling mill utilization(5) |
|
95 |
% |
(1) |
|
Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production. |
(3) |
|
Excludes PGMs in catalytic converters. |
(3) |
|
Price information is shown after netting the cost of freight incurred to deliver the product to the customer. |
(4) |
|
Cars purchased by auto parts stores only. |
(5) |
|
Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products. |
| SCHNITZER STEEL INDUSTRIES, INC. dba RADIUS RECYCLING
SELECTED OPERATING STATISTICS (Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY |
|
|||||
|
|
1Q23 |
|
|
2Q23 |
|
|
3Q23 |
|
|
4Q23 |
|
|
2023 |
|
|||||
Total ferrous volumes (LT, in thousands)(1) |
|
|
851 |
|
|
|
1,263 |
|
|
|
1,157 |
|
|
|
1,105 |
|
|
|
4,376 |
|
Total nonferrous volumes (pounds, in thousands)(1)(2) |
|
|
162,720 |
|
|
|
164,796 |
|
|
|
207,714 |
|
|
|
203,707 |
|
|
|
738,937 |
|
Ferrous selling prices ($/LT)(3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Domestic |
|
$ |
313 |
|
|
$ |
359 |
|
|
$ |
414 |
|
|
$ |
346 |
|
|
$ |
360 |
|
Foreign |
|
$ |
356 |
|
|
$ |
368 |
|
|
$ |
414 |
|
|
$ |
363 |
|
|
$ |
376 |
|
Average |
|
$ |
340 |
|
|
$ |
367 |
|
|
$ |
413 |
|
|
$ |
357 |
|
|
$ |
371 |
|
Ferrous sales volume (LT, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Domestic |
|
|
432 |
|
|
|
444 |
|
|
|
548 |
|
|
|
528 |
|
|
|
1,952 |
|
Foreign |
|
|
418 |
|
|
|
819 |
|
|
|
609 |
|
|
|
577 |
|
|
|
2,424 |
|
Total(6) |
|
|
851 |
|
|
|
1,263 |
|
|
|
1,157 |
|
|
|
1,105 |
|
|
|
4,376 |
|
Nonferrous average price ($/pound)(2)(3) |
|
$ |
0.90 |
|
|
$ |
0.99 |
|
|
$ |
1.01 |
|
|
$ |
0.94 |
|
|
$ |
0.96 |
|
Cars purchased (in thousands)(4) |
|
|
69 |
|
|
|
72 |
|
|
|
78 |
|
|
|
67 |
|
|
|
286 |
|
Auto stores at period end |
|
|
51 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
|
|
50 |
|
Finished steel average sales price ($/ST)(3) |
|
$ |
1,015 |
|
|
$ |
943 |
|
|
$ |
924 |
|
|
$ |
861 |
|
|
$ |
930 |
|
Sales volume (ST, in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Rebar |
|
|
101 |
|
|
|
84 |
|
|
|
97 |
|
|
|
108 |
|
|
|
390 |
|
Coiled products |
|
|
16 |
|
|
|
24 |
|
|
|
43 |
|
|
|
43 |
|
|
|
126 |
|
Merchant bar and other |
|
|
1 |
|
|
|
1 |
|
|
|
2 |
|
|
|
1 |
|
|
|
5 |
|
Finished steel products sold |
|
|
118 |
|
|
|
109 |
|
|
|
142 |
|
|
|
152 |
|
|
|
521 |
|
Rolling mill utilization(5) |
|
|
81 |
% |
|
|
75 |
% |
|
|
97 |
% |
|
|
102 |
% |
|
|
89 |
% |
LT = Long Ton, which is equivalent to 2,240 pounds
ST = Short Ton, which is equivalent to 2,000 pounds
(1) |
|
Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production. |
(2) |
|
Excludes PGMs in catalytic converters. |
(3) |
|
Price information is shown after netting the cost of freight incurred to deliver the product to the customer. |
(4) |
|
Cars purchased by auto parts stores only. |
(5) |
|
Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products. |
(6) |
|
May not foot due to rounding. |
| SCHNITZER STEEL INDUSTRIES, INC. dba RADIUS RECYCLING
CONDENSED CONSOLIDATED BALANCE SHEETS ($ in thousands) (Unaudited) |
||||||||
|
|
November 30, 2023 |
|
|
August 31, 2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
4,408 |
|
|
$ |
6,032 |
|
Accounts receivable, net |
|
|
191,415 |
|
|
|
210,442 |
|
Inventories |
|
|
281,062 |
|
|
|
278,642 |
|
Other current assets |
|
|
58,562 |
|
|
|
55,224 |
|
Total current assets |
|
|
535,447 |
|
|
|
550,340 |
|
Property, plant and equipment, net |
|
|
698,715 |
|
|
|
706,805 |
|
Operating lease right-of-use assets |
|
|
114,965 |
|
|
|
115,686 |
|
Goodwill and other assets |
|
|
343,527 |
|
|
|
343,118 |
|
Total assets |
|
$ |
1,692,654 |
|
|
$ |
1,715,949 |
|
|
|
|
|
|
|
|
||
Liabilities and Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Short-term borrowings |
|
$ |
5,641 |
|
|
$ |
5,813 |
|
Operating lease liabilities |
|
|
19,923 |
|
|
|
19,835 |
|
Environmental liabilities |
|
|
11,891 |
|
|
|
13,743 |
|
Other current liabilities |
|
|
267,704 |
|
|
|
284,539 |
|
Total current liabilities |
|
|
305,159 |
|
|
|
323,930 |
|
Long-term debt, net of current maturities |
|
|
278,280 |
|
|
|
243,579 |
|
Environmental liabilities, net of current portion |
|
|
52,352 |
|
|
|
53,034 |
|
Operating lease liabilities, net of current maturities |
|
|
95,267 |
|
|
|
96,086 |
|
Other long-term liabilities |
|
|
77,320 |
|
|
|
87,661 |
|
Total liabilities |
|
|
808,378 |
|
|
|
804,290 |
|
|
|
|
|
|
|
|
||
Total Radius Recycling ("Radius") shareholders' equity |
|
|
880,994 |
|
|
|
908,180 |
|
Noncontrolling interests |
|
|
3,282 |
|
|
|
3,479 |
|
Total equity |
|
|
884,276 |
|
|
|
911,659 |
|
Total liabilities and equity |
|
$ |
1,692,654 |
|
|
$ |
1,715,949 |
|
Non-GAAP Financial Measures
This press release contains performance based on adjusted diluted earnings per share from continuing operations attributable to Radius shareholders, adjusted EBITDA, adjusted EBITDA per ferrous ton, and adjusted selling, general, and administrative expense which are non-GAAP financial measures as defined under SEC rules. As required by SEC rules, the Company has provided a reconciliation of these measures for each period discussed to the most directly comparable
Reconciliation of adjusted diluted (loss) earnings per share from continuing operations attributable to Radius shareholders |
||||||||||||
($ per share) |
|
Three Months Ended |
||||||||||
|
|
1Q24 |
|
4Q23 |
|
1Q23 |
||||||
As reported |
|
$ |
(0.64 |
) |
|
$ |
(0.92 |
) |
|
$ |
(0.64 |
) |
Charges for legacy environmental matters, net, per share(1) |
|
|
0.01 |
|
|
|
0.14 |
|
|
|
0.05 |
|
Other asset impairment charges, per share(2) |
|
|
0.01 |
|
|
|
0.21 |
|
|
|
0.14 |
|
Business development costs, per share |
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Restructuring charges and other exit-related activities,
|
|
|
— |
|
|
|
— |
|
|
|
0.06 |
|
Goodwill impairment charges, per share |
|
|
— |
|
|
|
1.40 |
|
|
|
— |
|
Income tax benefit allocated to adjustments, per share(4) |
|
|
(0.03 |
) |
|
|
(0.35 |
) |
|
|
(0.06 |
) |
Effective of dilutive shares, per share(5) |
|
|
— |
|
|
|
(0.01 |
) |
|
|
— |
|
Adjusted(6) |
|
$ |
(0.64 |
) |
|
$ |
0.47 |
|
|
$ |
(0.44 |
) |
Reconciliation of adjusted EBITDA and adjusted EBITDA per ferrous ton |
||||||||||||
($ in millions) |
|
Three Months Ended |
||||||||||
|
|
1Q24 |
|
4Q23 |
|
1Q23 |
||||||
Net loss |
|
$ |
(18 |
) |
|
$ |
(26 |
) |
|
$ |
(18 |
) |
Plus interest expense |
|
|
5 |
|
|
|
5 |
|
|
|
3 |
|
Plus income tax benefit |
|
|
(10 |
) |
|
|
(3 |
) |
|
|
(6 |
) |
Plus depreciation and amortization |
|
|
23 |
|
|
|
23 |
|
|
|
21 |
|
Plus charges for legacy environmental matters, net(1) |
|
|
— |
|
|
|
4 |
|
|
|
1 |
|
Plus other asset impairment charges(2) |
|
|
— |
|
|
|
6 |
|
|
|
4 |
|
Plus business development costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus amortization of cloud computing software costs(3) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Plus restructuring charges and other exit-related activities |
|
|
— |
|
|
|
— |
|
|
|
2 |
|
Plus goodwill impairment charge |
|
|
— |
|
|
|
39 |
|
|
|
— |
|
Adjusted EBITDA(6) |
|
$ |
1 |
|
|
$ |
49 |
|
|
$ |
8 |
|
|
|
|
|
|
|
|
|
|
|
|||
Ferrous sales volume (LT, in thousands) |
|
|
1,152 |
|
|
|
1,105 |
|
|
|
851 |
|
Adjusted EBITDA per ferrous ton sold ($/LT) |
|
$ |
1 |
|
|
$ |
44 |
|
|
$ |
10 |
|
| Reconciliation of Adjusted selling, general and administrative expense: | ||||||||||||
($ in millions) |
|
Three Months Ended |
||||||||||
|
|
1Q24 |
|
4Q23 |
|
1Q23 |
||||||
As reported |
|
$ |
63 |
|
|
$ |
69 |
|
|
$ |
64 |
|
Charges for legacy environmental matters, net(1) |
|
|
— |
|
|
|
(4 |
) |
|
|
(1 |
) |
Business development costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Adjusted |
|
$ |
63 |
|
|
$ |
65 |
|
|
$ |
63 |
|
Reconciliation of debt, net of cash |
|||||||||
($ in thousands) |
|
|
|
|
|
|
|||
|
|
November 30, 2023 |
|
August 31, 2023 |
|
November 30, 2022 |
|||
Short-term borrowings |
|
$ |
5,641 |
|
$ |
5,813 |
|
$ |
6,379 |
Long-term debt, net of current maturities |
|
|
278,280 |
|
|
243,579 |
|
|
351,200 |
Total debt |
|
|
283,921 |
|
|
249,392 |
|
|
357,579 |
Less: cash and cash equivalents |
|
|
4,408 |
|
|
6,032 |
|
|
3,539 |
Total debt, net of cash |
|
$ |
279,513 |
|
$ |
243,360 |
|
$ |
354,040 |
LT = Long Ton, which is equivalent to 2,240 pounds
(1) |
|
Legal and environmental charges, net of recoveries, for legacy environmental matters including those related to the Portland Harbor Superfund site and to other legacy environmental loss contingencies. |
(2) |
|
For the first quarters of fiscal 2024 and 2023, asset impairment charges included |
(3) |
|
Amortization of cloud computing software costs consists of expense recognized in cost of goods sold and selling, general, and administrative expense resulting from amortization of capitalized implementation costs for cloud computing IT systems. This expense is not included in depreciation and amortization. No amortization of cloud computing software costs was incurred prior to the first quarter of fiscal 2024; therefore, prior period Adjusted EBITDA amounts are not impacted. |
(4) |
|
Income tax allocated to the aggregate adjustments reconciling reported and adjusted diluted earnings per share from continuing operations attributable to Radius shareholders is determined based on a tax provision calculated with and without the adjustments. |
(5) |
|
For the quarter and year ended August 31, 2023, adjusted diluted earnings (loss) per share from continuing operations attributable to Radius shareholders reflects the inclusion of an incremental 608 thousand and 652 thousand common stock equivalent shares, respectively, attributable to dilutive share-based compensation awards that were antidilutive for the purpose of calculating the comparable GAAP loss per share measure. |
(6) |
|
May not foot due to rounding. |
Forward-Looking Statements
Statements and information included in this press release by Schnitzer Steel Industries, Inc. dba Radius Recycling ("Radius") 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 in this press release to “we,” “our,” “us,” “the Company,” “SSI,” "Schnitzer Steel," and "Radius" refer to Radius and its consolidated subsidiaries.
Forward-looking statements in this press release include statements regarding future events or our expectations, intentions, beliefs, and strategies regarding the future, which may include statements regarding the impact of equipment upgrades, equipment failures, and facility damage on production, including timing of repairs and resumption of operations; the realization of insurance recoveries; the Company’s outlook, growth initiatives, or expected results or objectives, including pricing, margins, sales volumes, and profitability; completion of acquisitions and integration of acquired businesses; the impacts of supply chain disruptions, inflation, and rising interest rates; liquidity positions; our ability to generate cash from continuing operations; trends, cyclicality, and changes in the markets we sell into; strategic direction or goals; targets; changes to manufacturing and production processes; the realization of deferred tax assets; planned capital expenditures; 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 impact of sanctions and tariffs, quotas, and other trade actions and import restrictions; the impact of pandemics, epidemics, or other public health emergencies, such as the coronavirus disease 2019 (“COVID-19”) pandemic; the impact of labor shortages or increased labor costs; obligations under our retirement plans; benefits, savings, or additional costs from business realignment, cost containment, and productivity improvement programs; the potential impact of adopting new accounting pronouncements; and the adequacy of accruals.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as “outlook,” “target,” “aim,” “believes,” “expects,” “anticipates,” “intends,” “assumes,” “estimates,” “evaluates,” “may,” “will,” “should,” “could,” “opinions,” “forecasts,” “projects,” “plans,” “future,” “forward,” “potential,” “probable,” and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.
We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases, presentations, and on 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 Part I of our most recent Annual Report on Form 10-K. Examples of these risks include: potential environmental cleanup costs related to the Portland Harbor Superfund site or other locations; the impact of equipment upgrades, equipment failures, and facility damage on production; failure to realize or delays in realizing expected benefits from capital projects, including investments in processing and manufacturing technology improvements; the cyclicality and impact of general economic conditions; the impact of inflation, rising interest rates, and foreign currency fluctuations; changing conditions in global markets including the impact of sanctions and tariffs, quotas, and other trade actions and import restrictions; increases in the relative value of the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240104693916/en/
Investor Relations:
Michael Bennett
(503) 323-2811
mcbennett@rdus.com
Company Info:
www.radiusrecycling.com
ir@rdus.com
Source: Schnitzer Steel Industries, Inc. dba Radius Recycling
FAQ
What is the ticker symbol for Schnitzer Steel Industries, Inc.?
What was the net loss reported by Schnitzer Steel Industries, Inc. for the first quarter of fiscal 2024?
What was the adjusted loss per share from continuing operations for Schnitzer Steel Industries, Inc. in the first quarter of fiscal 2024?
What was the adjusted EBITDA reported by Schnitzer Steel Industries, Inc. in the first quarter of fiscal 2024?
What was the percentage increase in nonferrous sales volumes year-over-year for Schnitzer Steel Industries, Inc.?
What was the percentage increase in finished steel sales volumes year-over-year for Schnitzer Steel Industries, Inc.?
What was the quarterly dividend declared by Schnitzer Steel Industries, Inc.?
When is the dividend payable for Schnitzer Steel Industries, Inc.?
