Schnitzer Reports Fourth Quarter and Fiscal 2022 Financial Results

Rhea-AI Summary

Schnitzer Steel Industries reported solid financial results for the fourth quarter and fiscal year ended August 31, 2022, marking the second-best fiscal year in the company's history. The fourth quarter showed diluted earnings per share of $0.36 and net income of $11 million. Adjusted EBITDA reached $40 million in Q4, while fiscal 2022 EBITDA totaled $313 million. The company generated $180 million in operating cash flow in the fourth quarter and $238 million for the year. Despite challenges in demand and prices, Schnitzer remained focused on sustainability and strategic investments.

Positive

• Fiscal 2022 marked the second-best year in the company's history.
• Operating cash flow was $180 million in Q4 and $238 million for the year.
• Diluted EPS of $5.72 for fiscal 2022 and $0.50 adjusted EPS for Q4.
• Share repurchases totaled 3.5% of outstanding shares in fiscal 2022.

Negative

• Net income fell to $11 million in Q4, down from $76 million in Q3.
• Adverse impacts from declining ferrous and nonferrous sales prices and demand.
• Operating results affected by an extended outage of the Everett shredding operation.

Second Best Fiscal Year Earnings in Company's History

Strong Operating Cash Flow of $180 Million in the Fourth Quarter

PORTLAND, Ore.--(BUSINESS WIRE)-- Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) today reported financial results for the fourth quarter and fiscal year ended August 31, 2022.

Fourth Quarter and Fiscal 2022 Highlights

• Diluted earnings per share from continuing operations of $0.36 in the fourth quarter. Diluted earnings per share from continuing operations of $5.72 in fiscal 2022.
• Adjusted diluted earnings per share from continuing operations in the fourth quarter of $0.50, which excludes charges of $4 million, or $0.14 per share, related primarily to legacy environmental matters. Adjusted diluted earnings per share from continuing operations of $6.07 in fiscal 2022, which excludes charges of $10 million, or $0.34 per share, related primarily to legacy environmental matters.
• Net income of $11 million in the fourth quarter. Net income of $172 million in fiscal 2022.
• Adjusted EBITDA of $40 million in the fourth quarter. Adjusted EBITDA of $313 million in fiscal 2022.
• Strong operating cash flow of $180 million in the fourth quarter and $238 million in fiscal 2022. Total debt of $249 million at the end of the fourth quarter and debt, net of cash, of $205 million.
• The Company repurchased approximately 1.8% of the outstanding shares of its Class A common stock during the quarter. Share repurchases in fiscal 2022 totaled approximately 3.5% of outstanding shares.

Fiscal 2022 results were the second-best year in the Company's history, driven by a combination of high demand for finished steel and recycled metals, increased ferrous and nonferrous sales volumes, two acquisitions, and benefits from productivity initiatives. After delivering record performance in the first nine months of fiscal 2022, fourth quarter performance was adversely impacted by declining ferrous and nonferrous sales prices and demand, tighter supply flows, and disruptions due to an extended metal shredder outage at the Company's Everett, MA recycling facility, offset in part by the benefits of strong prices for the Company's finished steel products.

Tamara Lundgren, Chairman and Chief Executive Officer, stated, “I am proud of what our team has accomplished during a year of significant volatility. Our results in fiscal 2022 were the second best in the Company's history. We stayed focused on our sustainability framework of People, Planet and Profit, and made significant progress on our strategic initiatives. These include our investments in advanced metal recovery technology systems, launching GRN Steel™, our line of net zero carbon emissions products, and two acquisitions in the Southeast, including our first metal shredding operation in the region. We also delivered our strongest annual operating cash flow since fiscal 2012 and continued to return capital to shareholders through our quarterly dividend and share repurchases."

Ms. Lundgren continued, "Despite current headwinds, we expect the long-term structural trends for recycled metal demand to remain positive, supported by the transition to low carbon technologies, the increased focus on decarbonization, and the expected funding related to the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, including Buy Clean provisions.”

Summary Results
($ in millions, except per share amounts)
		Quarter												Year
		4Q22				3Q22				4Q21				2022				2021
Revenues		$	894			$	1,010			$	846			$	3,486			$	2,759
Gross margin (total revenues less cost of goods sold)		$	85			$	176			$	126			$	488			$	453
Gross margin (%)			9.5	%			17.4	%			14.9	%			14.0	%			16.4	%
Selling, general and administrative expense		$	69			$	78			$	77			$	263			$	242
Net income		$	11			$	76			$	44			$	172			$	170
Net income per ferrous ton		$	9			$	67			$	38			$	37			$	39
Diluted earnings per share from continuing operations attributable to SSI shareholders
Reported		$	0.36			$	2.52			$	1.43			$	5.72			$	5.66
Adjusted(1)		$	0.50			$	2.59			$	1.81			$	6.07			$	6.13
Adjusted EBITDA(1)		$	40			$	119			$	80			$	313			$	289
Adjusted EBITDA per ferrous ton(1)		$	32			$	105			$	69			$	68			$	66
Cash flows from operating activities		$	180			$	45			$	139			$	238			$	190
Ferrous sales volumes (LT, in thousands)			1,268				1,129				1,163				4,616				4,408
Avg. net ferrous sales prices ($/LT)(2)		$	387			$	541			$	449			$	452			$	381
Nonferrous sales volumes (pounds, in millions)(3)			186				201				164				687				593
Avg. nonferrous sales prices ($/pound)(2)(3)		$	1.05			$	1.12			$	1.01			$	1.08			$	0.88
Finished steel average net sales price ($/ST)(2)		$	1,118			$	1,129			$	920			$	1,075			$	737
Finished steel sales volumes (ST, in thousands)			125				135				65				465				488
Rolling mill utilization (%)			93	%			96	%			28	%			88	%			78	%

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 U.S. GAAP.
(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.

Fourth Quarter Fiscal 2022 Financial Review and Analysis

Net income of $11 million and adjusted EBITDA of $40 million in the fourth quarter reflected a sharp sequential decline in selling prices for recycled metals due to lower demand and the weaker economic environment. This led to both a compression in metal spreads and an approximate $23 per ferrous ton adverse impact from average inventory accounting. In the lower price environment, supply flows also tightened. Lower SG&A expense, primarily as a result of lower incentive compensation accruals, and productivity initiatives helped to partially offset inflationary pressure on operating costs, rising regulatory compliance costs, and the impact of the aforementioned Everett shredding operation outage since late June to replace equipment damaged by the December 2021 fire, net of insurance recoveries.

Ferrous sales volumes were up 12% sequentially, primarily resulting from shipments delayed from the third quarter. Compared to the previous quarter, nonferrous sales volumes were down 8%. Ferrous and nonferrous sales volumes were impacted by tighter supply flows resulting from the drop in prices and the extended shredding operation outage at the Company's Everett facility. Average ferrous and nonferrous net selling prices decreased sequentially by 28% and 7%, respectively. Average net selling prices for finished steel products were down 1% sequentially, remaining near the all-time high achieved in the prior quarter, and finished steel sales volumes were down 7%. The mill achieved an average utilization rate of 93%.

The Company generated operating cash flow in the fourth quarter of $180 million, driven by benefits from working capital. Capital expenditures were $52 million in the quarter, including investments in advanced metal recovery technologies, maintaining the business, and environmental projects. Total debt at the end of the fourth quarter was $249 million, and debt, net of cash, was $205 million. On August 22, 2022, the Company increased the total size of its existing revolving credit facility by $100 million to $800 million and extended its maturity to August 2027. The Company’s effective tax rate for the fourth quarter was an expense of 11% and included discrete tax benefits of $2 million during the quarter.

During the fourth quarter, the Company returned capital to shareholders through its 114th consecutive quarterly dividend and the repurchase of approximately 500,000 shares of its Class A common stock for $16 million in open market transactions pursuant to its authorized share repurchase program. Share repurchases for fiscal 2022 represented approximately 3.5% of the Company's outstanding shares of Class A common stock.

For a reconciliation of adjusted results and debt, net of cash, to U.S. GAAP, see the table provided in the Non-GAAP Financial measures section.

Declaration of Quarterly Dividend

The Board of Directors declared a cash dividend of $0.1875 per common share, payable November 29, 2022 to shareholders of record on November 10, 2022. Schnitzer has paid a dividend every quarter since going public in November 1993.

Analysts’ Conference Call: Fourth Quarter and Fiscal 2022 Results

A conference call and slide presentation to discuss results will be held today, October 24, 2022, at 11:30 a.m. Eastern and will be hosted by Tamara L. Lundgren, Chairman and Chief Executive Officer, and Stefano Gaggini, Senior Vice President and Chief Financial Officer. The call and the slide presentation will be webcast and accessible on the Company’s website under Company > Investors > Event Calendar at www.schnitzersteel.com/company/investors/event-calendar.

Summary financial data is provided in the following pages. The slide presentation and related materials will be available prior to the call on the above website.

About Schnitzer Steel Industries, Inc.

Schnitzer Steel Industries, Inc. operates at the intersection of metals recovery, reuse, recycling, and manufacturing. Schnitzer is one of the largest manufacturers and exporters of recycled metal products in North America with operating facilities located in 25 states, Puerto Rico, and Western Canada. Schnitzer has seven deep water export facilities located on both the East and West Coasts and in Hawaii and Puerto Rico. The Company’s integrated operating platform also includes 51 stores which sell serviceable used auto parts from salvaged vehicles and receive over 4.1 million annual retail visits. The Company’s steel manufacturing operations produce finished steel products, including rebar, wire rod, and other specialty products. The Company began operations in 1906 in Portland, Oregon.

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except per share amounts)
(Unaudited)
		Quarter												Year
		4Q22				3Q22				4Q21				2022				2021
Revenues		$	894,412			$	1,010,087			$	845,615			$	3,485,815			$	2,758,551
Cost of goods sold			809,587				834,375				719,941				2,997,745				2,305,357
Selling, general and administrative expense			69,237				77,672				76,528				263,257				242,463
Income from joint ventures			(1,151	)			(762	)			(1,875	)			(2,740	)			(4,006	)
Asset impairment charges			638				932				—				1,570				—
Restructuring charges and other exit-related activities			25				26				26				77				1,008
Operating income			16,076				97,844				50,995				225,906				213,729
Interest expense			(3,042	)			(2,223	)			(898	)			(8,538	)			(5,285	)
Other income (loss), net			(556	)			(34	)			66				(692	)			(455	)
Income from continuing operations before income taxes			12,478				95,587				50,163				216,676				207,989
Income tax expense			(1,390	)			(20,037	)			(6,346	)			(44,597	)			(37,935	)
Income from continuing operations			11,088				75,550				43,817				172,079				170,054
Loss from discontinued operations, net of tax			(37	)			(46	)			(21	)			(83	)			(79	)
Net income			11,051				75,504				43,796				171,996				169,975
Net income attributable to noncontrolling interests			(699	)			(870	)			(1,011	)			(3,196	)			(4,863	)
Net income attributable to SSI shareholders		$	10,352			$	74,634			$	42,785			$	168,800			$	165,112
Net income per share attributable to SSI shareholders:
Basic:
Income per share from continuing operations		$	0.37			$	2.65			$	1.52			$	6.01			$	5.90
Net income per share		$	0.37			$	2.65			$	1.52			$	6.01			$	5.90
Diluted:
Income per share from continuing operations		$	0.36			$	2.52			$	1.43			$	5.72			$	5.66
Net income per share		$	0.36			$	2.52			$	1.43			$	5.72			$	5.66
Weighted average number of common shares:
Basic			27,803				28,143				28,087				28,084				27,982
Diluted			28,892				29,625				29,882				29,529				29,193
Dividends declared per common share		$	0.1875			$	0.1875			$	0.1875			$	0.7500			$	0.7500

SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
																		YTD
		1Q22				2Q22				3Q22				4Q22				2022(6)
Total ferrous volumes (LT, in thousands)(1)			1,148				1,071				1,129				1,268				4,616
Total nonferrous volumes (pounds, in thousands)(1)(2)			153,227				147,145				201,413				185,634				687,419
Ferrous selling prices ($/LT)(3)
Domestic		$	431			$	418			$	516			$	389			$	438
Foreign		$	450			$	455			$	552			$	387			$	457
Average		$	446			$	445			$	541			$	387			$	452
Ferrous sales volume (LT, in thousands)
Domestic			430				408				490				477				1,806
Foreign			718				663				639				791				2,810
Total			1,148				1,071				1,129				1,268				4,616
Nonferrous average price ($/pound)(2)(3)		$	1.05			$	1.10			$	1.12			$	1.05			$	1.08
Cars purchased (in thousands)(4)			80				73				84				76				312
Auto stores at period end			50				50				50				51				51
Finished steel average sales price ($/ST)(3)		$	979			$	1,045			$	1,129			$	1,118			$	1,075
Sales volume (ST, in thousands)
Rebar			74				73				99				96				343
Coiled products			25				32				35				28				119
Merchant bar and other			—				1				1				1				3
Finished steel products sold			99				106				135				125				465
Rolling mill utilization(5)			78	%			86	%			96	%			93	%			88	%

(1)		Ferrous and nonferrous volumes sold externally and delivered to our steel mill for finished steel production.
(2)		Excludes platinum group metals (“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. 1Q22 impacted by mill shutdown beginning in May 2021 and subsequent ramp-up of operations.
(6)		May not foot due to rounding.

SCHNITZER STEEL INDUSTRIES, INC.
SELECTED OPERATING STATISTICS
(Unaudited)
																		YTD
		1Q21				2Q21				3Q21				4Q21				2021
Total ferrous volumes (LT, in thousands)(1)			1,053				977				1,215				1,163				4,408
Total nonferrous volumes (pounds, in thousands)(1)(2)			138,236				135,899				155,657				163,586				593,378
Ferrous selling prices ($/LT)(3)
Domestic		$	242			$	349			$	395			$	453			$	364
Foreign		$	276			$	399			$	401			$	446			$	385
Average		$	269			$	387			$	400			$	449			$	381
Ferrous sales volume (LT, in thousands)
Domestic			388				391				412				309				1,500
Foreign			665				586				803				854				2,908
Total			1,053				977				1,215				1,163				4,408
Nonferrous average price ($/pound)(2)(3)		$	0.64			$	0.83			$	0.97			$	1.01			$	0.88
Cars purchased (in thousands)(4)			78				80				91				89				338
Auto stores at period end			50				50				50				50				50
Finished steel average sales price ($/ST)(3)		$	621			$	690			$	802			$	920			$	737
Sales volume (ST, in thousands)
Rebar			94				103				106				50				353
Coiled products			39				32				47				14				132
Merchant bar and other			1				1				—				1				3
Finished steel products sold			134				136				153				65				488
Rolling mill utilization(5)			97	%			88	%			98	%			28	%			78	%

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 platinum group metals (“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. 4Q21 impacted by mill shutdown beginning in May 2021 and subsequent ramp-up of operations.

SCHNITZER STEEL INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
($ in thousands)
(Unaudited)
		August 31, 2022			August 31, 2021
Assets
Current assets:
Cash and cash equivalents		$	43,803		$	27,818
Accounts receivable, net			237,654			214,098
Inventories			315,189			256,427
Other current assets			74,740			44,771
Total current assets			671,386			543,114
Property, plant and equipment, net			664,120			562,674
Operating lease right-of-use assets			122,413			131,221
Goodwill and other assets			368,678			257,354
Total assets		$	1,826,597		$	1,494,363
Liabilities and Equity
Current liabilities:
Short-term borrowings		$	6,041		$	3,654
Operating lease liabilities			21,660			21,417
Other current liabilities			353,872			327,779
Total current liabilities			381,573			352,850
Long-term debt, net of current maturities			242,521			71,299
Environmental liabilities, net of current portion			55,469			52,385
Operating lease liabilities, net of current maturities			101,651			113,165
Other long-term liabilities			86,909			64,885
Total liabilities			868,123			654,584
Total Schnitzer Steel Industries, Inc. ("SSI") shareholders' equity			953,979			835,764
Noncontrolling interests			4,495			4,015
Total equity			958,474			839,779
Total liabilities and equity		$	1,826,597		$	1,494,363

Non-GAAP Financial Measures

This press release contains performance based on adjusted diluted earnings per share from continuing operations attributable to SSI shareholders, adjusted EBITDA, and adjusted EBITDA per ferrous ton 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 U.S. GAAP measure. Management believes that providing these non-GAAP financial measures adds a meaningful presentation of our results from business operations excluding adjustments for legacy environmental matters (net of recoveries), business development costs not related to ongoing operations including pre-acquisition expenses, asset impairment charges, charges related to non-ordinary course legal settlements, restructuring charges and other exit-related activities, and the income tax benefit allocated to these adjustments, items which are not related to underlying business operational performance, and improves the period-to-period comparability of our results from business operations. We believe that presenting debt, net of cash is useful to investors as a measure of our leverage, as cash and cash equivalents can be used, among other things, to repay indebtedness. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the most directly comparable U.S. GAAP measures.

Reconciliation of adjusted diluted earnings per share from continuing operations attributable to SSI shareholders
($ per share)		Quarter												Year
		4Q22				3Q22				4Q21				2022				2021
As reported		$	0.36			$	2.52			$	1.43			$	5.72			$	5.66
Charges for legacy environmental matters, net, per share(1)			0.10				—				0.43				0.25				0.47
Business development costs, per share			0.02				0.03				0.05				0.09				0.07
Asset impairment charges, per share			0.02				0.03				—				0.05				—
Charges related to legal settlements, per share(2)			—				0.02				—				0.02				0.01
Restructuring charges and other exit-related activities, per share			—				—				—				—				0.03
Income tax benefit allocated to adjustments, per share(3)			—				(0.02	)			(0.10	)			(0.07	)			(0.13	)
Adjusted(4)		$	0.50			$	2.59			$	1.81			$	6.07			$	6.13

Reconciliation of adjusted EBITDA and adjusted EBITDA per ferrous ton
($ in millions)		Quarter												Year
		4Q22				3Q22				4Q21				2022				2021
Net income		$	11			$	76			$	44			$	172			$	170
Plus interest expense			3				2				1				9				5
Plus income tax expense			1				20				6				45				38
Plus depreciation and amortization			20				19				15				75				59
Plus charges for legacy environmental matters, net(1)			3				—				13				8				14
Plus business development costs			1				1				1				3				2
Plus asset impairment charges			1				1				—				2				—
Plus charges related to legal settlements(2)			—				1				—				1				—
Plus restructuring charges and other exit-related activities			—				—				1				—				1
Adjusted EBITDA(4)		$	40			$	119			$	80			$	313			$	289
Ferrous sales volume (LT, in thousands)			1,268				1,129				1,163				4,616				4,408
Adjusted EBITDA per ferrous ton sold ($/LT)		$	32			$	105			$	69			$	68			$	66

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)		Charges related to a legal settlement in connection with a claim by a utility provider for past charges.
(3)		Income tax allocated to the aggregate adjustments reconciling reported and adjusted diluted earnings per share from continuing operations attributable to SSI shareholders is determined based on a tax provision calculated with and without the adjustments.
(4)		May not foot due to rounding.

Reconciliation of debt, net of cash
($ in thousands)
		August 31, 2022			May 31, 2022			August 31, 2021
Short-term borrowings		$	6,041		$	5,764		$	3,654
Long-term debt, net of current maturities			242,521			316,108			71,299
Total debt			248,562			321,872			74,953
Less: cash and cash equivalents			43,803			16,125			27,818
Total debt, net of cash		$	204,759		$	305,747		$	47,135

Forward-Looking Statements

Statements and information included in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Except as noted herein or as the context may otherwise require, all references in this press release to “we,” “our,” “us,” “the Company,” and “SSI” refer to Schnitzer Steel Industries, Inc. 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 impact of pandemics, epidemics, or other public health emergencies, such as the coronavirus disease 2019 (“COVID-19”) pandemic; 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 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, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. 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 U.S. dollar; economic and geopolitical instability including as a result of military conflict; volatile supply and demand conditions affecting prices and volumes in the markets for raw materials and other inputs we purchase; significant decreases in recycled metal prices; imbalances in supply and demand conditions in the global steel industry; difficulties associated with acquisitions and integration of acquired businesses; supply chain disruptions; reliance on third-party shipping companies, including with respect to freight rates and the availability of transportation; the impact of goodwill impairment charges; the impact of long-lived asset and equity investment impairment charges; the impact of pandemics, epidemics or other public health emergencies, such as the COVID-19 pandemic; inability to achieve or sustain the benefits from productivity, cost savings, and restructuring initiatives; inability to renew facility leases; customer fulfillment of their contractual obligations; potential limitations on our ability to access capital resources and existing credit facilities; restrictions on our business and financial covenants under the agreement governing our bank credit facilities; the impact of consolidation in the steel industry; product liability claims; the impact of legal proceedings and legal compliance; the adverse impact of climate change; the impact of not realizing deferred tax assets; the impact of tax increases and changes in tax rules; the impact of one or more cybersecurity incidents; translation risks associated with fluctuation in foreign exchange rates; inability to obtain or renew business licenses and permits; environmental compliance costs and potential environmental liabilities; increased environmental regulations and enforcement; compliance with climate change and greenhouse gas emission laws and regulations; the impact of labor shortages or increased labor costs; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221024005279/en/

Investor Relations:

Michael Bennett

(503) 323-2811

mcbennett@schn.com



Company Info:

www.schnitzersteel.com

ir@schn.com

Source: Schnitzer Steel Industries, Inc.

FAQ

What were Schnitzer Steel's earnings for the fourth quarter of fiscal 2022?

Schnitzer Steel reported diluted earnings per share of $0.36 in the fourth quarter of fiscal 2022.

What is Schnitzer Steel's total operating cash flow for fiscal 2022?

The total operating cash flow for Schnitzer Steel in fiscal 2022 was $238 million.

What challenges did Schnitzer Steel face in the fourth quarter of fiscal 2022?

Schnitzer Steel faced declining ferrous and nonferrous sales prices, reduced demand, and disruptions from an extended outage of its Everett shredding operation.

How much did Schnitzer Steel repurchase in shares during fiscal 2022?

Schnitzer Steel repurchased approximately 3.5% of its outstanding shares during fiscal 2022.