- Fourth quarter net earnings of $103.9 million, or $0.90 per diluted share; annual net earnings of
$485.5 million, or $4.14 per diluted share
- Consolidated core EBITDA of $227.1
million in the fourth quarter; core EBITDA margin of
11.4%
- Solid construction activity provided stability in
North America shipment volumes;
margins pressured by decline in average steel pricing
- Tensar achieved its most
profitable quarter to date as a division of CMC, driving the
Emerging Businesses Group adjusted EBITDA margin to 21.7% in the
fourth quarter
- Successful cost management actions improved Europe Steel
Group fourth quarter adjusted EBITDA by $26.5 million on a year-over-year basis despite
materially lower volumes and flat metal margins
- Strong generation of cash flow from operating activities in
the fourth quarter and fiscal year 2024 of $351.8 million and $899.7
million, respectively
- Cash distributions to shareholders in the form of share
repurchases and dividends amounted to $261.8
million in fiscal year 2024, an increase of 48% compared to
fiscal year 2023
IRVING,
Texas, Oct. 17, 2024 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) today announced financial results for
its fiscal fourth quarter ended August 31, 2024. Net earnings
were $103.9 million, or $0.90 per diluted share, on net sales of
$2.0 billion, compared to prior year
period net earnings of $184.2
million, or $1.56 per diluted
share, on net sales of $2.2
billion.
For the full year fiscal 2024, CMC reported net earnings of
$485.5 million, or $4.14 per diluted share, on net sales of
$7.9 billion compared to prior year
net earnings of $859.8 million, or
$7.25 per diluted share, on net sales
of $8.8 billion.
"Adjusted EBITDA," "core EBITDA," "core EBITDA margin,"
"adjusted earnings" and "adjusted earnings per diluted share" are
non-GAAP financial measures. Details, including a reconciliation of
each such non-GAAP financial measure to the most directly
comparable measure prepared and presented in accordance with GAAP,
can be found in the financial tables that follow.
Peter Matt, President and Chief
Executive Officer, said, "Fiscal 2024 was another solid year for
CMC with highlights including record employee safety performance
for the second consecutive year, our third best financial results
in the Company's 109-year history, and meaningful advancement
across several key strategic projects. During the fourth
quarter, we felt the impact of increased macroeconomic and
political uncertainty. Though strong by historical standards, our
financial results were hampered by weaker sentiment that negatively
influenced steel product pricing and margins. Certain contemplated
construction projects appear to be on hold until greater clarity
emerges regarding the future path of interest rates and the outcome
of U.S. elections. We believe the underlying near and long-term
demand fundamentals remain strong based on customer conversations
and continued healthy downstream bid activity underpinned by the
structural trends of infrastructure investment, re-shoring of
manufacturing, electrification, and the need to address a chronic
housing shortage in the U.S."
Mr. Matt added, "During 2024, we made significant progress on
the development of a key component of our long-term strategic plan
– Transform, Advance, Grow (TAG), an enterprise wide operational
and commercial excellence initiative – which we expect will support
substantial value creation in the years ahead. The improvement
program, which seeks to leverage our leading positions in most of
our core markets, touches nearly every aspect of our business and
aims to achieve higher through-the-cycle margins by lowering costs,
increasing efficiency, and better capturing commercial
opportunities across our business. We believe the execution
of several early initiatives will begin yielding financial benefits
in fiscal 2025."
The Company's balance sheet and liquidity position remained
strong. As of August 31, 2024, cash and cash equivalents
totaled $857.9 million, with
available liquidity of nearly $1.7
billion. During the quarter, CMC repurchased 1,001,096
shares of common stock valued at $54.8
million in the aggregate. As of August 31, 2024,
$403.8 million remained available
under the current share repurchase authorization.
On October 15, 2024, the board of directors declared a
quarterly dividend of $0.18 per share
of CMC common stock payable to stockholders of record on
October 31, 2024, representing an increase of approximately
13% on a year-over-year basis. The dividend to be paid on
November 14, 2024, marks the 240th consecutive
quarterly payment by the Company.
Business Segments - Fiscal Fourth Quarter 2024
Review
Demand for CMC's products in North America remained stable during the
quarter. Average daily shipments of finished steel products were
virtually unchanged compared to both the prior year and third
quarter. The construction pipeline of potential future projects
remained healthy as indicated by CMC's downstream bidding activity
and the Dodge Momentum Index, which measures the value of projects
entering the planning phase. Though bid volumes were strong
compared to historical levels, they have declined from the peaks of
fiscal 2022 and fiscal 2023. Downstream backlog volumes were
generally stable on both a year-over-year and sequential basis.
Shipments of merchant products (MBQ) grew compared to the fourth
quarter of fiscal 2023 as our ability to serve West Coast customers
from our Arizona 2 micro mill
facility has increased.
Adjusted EBITDA for the North America Steel Group decreased to
$210.9 million in the fourth quarter
of fiscal 2024 from $336.8 million in
the prior year period. The earnings reduction was driven by lower
margins over scrap costs on steel products and downstream products.
Included in fourth quarter segment adjusted EBITDA were
$15.1 million in costs, net of
depreciation, related to the commissioning of CMC's Arizona 2 micro mill, which compares to costs
of $12.3 million incurred during the
prior year period. The adjusted EBITDA margin for the North America
Steel Group of 13.5% declined from 19.6% in the fourth quarter of
fiscal 2023.
European market conditions in the fourth quarter were similar
sequentially. 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 an adjusted
EBITDA loss of $3.6 million,
continuing the trend of improved financial performance compared to
late fiscal 2023 and early fiscal 2024. On a sequential basis,
financial results were essentially flat as positive contributions
from higher shipment volumes and lower controllable costs were
offset by an $8 per ton reduction in
margins over scrap. Adjusted EBITDA increased by $26.5 million from the prior year period, driven
entirely by cost management actions, which overcame an 18% decline
in shipment volumes with no change in margins over scrap.
Emerging Businesses Group fourth quarter net sales of
$195.6 million decreased by 6.2%
compared to the prior year period, but improved 3.7% on a
sequential basis. Adjusted EBITDA for the segment of $42.5 million was unchanged on a year-over-year
basis and increased by 11.2% from the third quarter. Sales mix
contributed positively to both year-over-year and sequential
adjusted EBITDA performance, with a greater percentage of geogrid
volumes composed of CMC's highest margin proprietary offering,
while shipments of Performance Reinforcing Steel also increased.
Demand conditions in the North American markets remained resilient
during the quarter with pipeline measures such as project quotes
and backlog at healthy levels. Adjusted EBITDA margin of 21.7% was
up 130 basis points compared to the prior year period.
Outlook
Mr. Matt said, "We expect consolidated
financial results in our first quarter of fiscal 2025 to decline
from the fourth quarter level as a consequence of continued
macroeconomic uncertainty and temporary, dampened sentiment within
certain areas of the construction industry. Finished steel
shipments within the North America Steel Group are anticipated to
follow normal seasonal trends, while adjusted EBITDA margin is
expected to decrease on lower steel product margin over scrap cost.
Adjusted EBITDA for our Europe Steel Group should experience a
meaningful sequential increase, driven by the receipt of an annual
CO2 credit that is expected to be within a range of $35 million to $40
million. Underlying financial performance for the Europe
Steel Group is likely to remain similar to fourth quarter levels.
Financial results for the Emerging Businesses Group are anticipated
to decline due to normal seasonality and the impact of economic
uncertainty within the United
States and Europe."
Mr. Matt concluded, "We believe current market conditions
represent a transient period of softness created by uncertainty
regarding important factors that influence any major capital
investment – the cost of funding and future government policy.
Clarity will emerge in the coming months, and we believe, renewed
strength in our core markets will follow."
Conference Call
CMC invites you to listen to a live
broadcast of its fourth quarter fiscal 2024 conference call today,
Thursday, October 17, 2024, at 10:00
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
the United States and Central Europe, we offer products and
technologies to meet the critical reinforcement needs of the global
construction sector. CMC's solutions support construction across a
wide variety of applications, including infrastructure,
non-residential, residential, industrial, and energy generation and
transmission.
Forward-Looking Statements
This news release contains
forward-looking statements within the meaning of the federal
securities laws with respect to general economic conditions, key
macro-economic drivers that impact our business, the effects of
ongoing trade actions, the effects of continued pressure on the
liquidity of our customers, potential synergies and 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, 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 timeline for execution of our
growth plan and our expectations or beliefs concerning future
events. The statements in this release that are not historical
statements, are forward-looking statements. These forward-looking
statements can generally be identified by phrases such as we or our
management "expects," "anticipates," "believes," "estimates,"
"future," "intends," "may," "plans to," "ought," "could," "will,"
"should," "likely," "appears," "projects," "forecasts," "outlook"
or other similar words or phrases, as well as by discussions of
strategy, plans or intentions.
The Company's forward-looking statements are based on
management's expectations and beliefs as of the time this news
release was prepared. Although we believe that our expectations are
reasonable, we can give no assurance that these expectations will
prove to have been correct, and actual results may vary materially.
Except as required by law, we undertake no obligation to update,
amend or clarify any forward-looking statements to reflect changed
assumptions, the occurrence of anticipated or unanticipated events,
new information or circumstances or any other changes. Important
factors that could cause actual results to differ materially from
our expectations include those described in our filings with the
Securities and Exchange Commission, including, but not limited to,
in Part I, Item 1A, "Risk Factors" of our annual report on Form
10-K for the fiscal year ended August 31, 2023, 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
China, and product availability
from competing steel mills and other steel suppliers including
import quantities and pricing; the impact of geopolitical
conditions, including political turmoil and volatility, regional
conflicts, terrorism and war on the global economy, inflation,
energy supplies and raw materials; increased attention to
environmental, social and governance ("ESG") matters, including any
targets or other ESG, environmental justice or regulatory
initiatives; operating and startup risks, as well as market risks
associated with the commissioning of new projects could prevent us
from realizing anticipated benefits and could result in a loss of
all or a substantial part of our investments; impacts from global
public health crises on the economy, demand for our products,
global supply chain and on our operations; compliance with and
changes in existing and future laws, regulations and other legal
requirements and judicial decisions that govern our business,
including increased environmental regulations associated with
climate change and greenhouse gas emissions; involvement in various
environmental matters that may result in fines, penalties or
judgments; evolving remediation technology, changing regulations,
possible third-party contributions, the inherent uncertainties of
the estimation process and other factors that may impact amounts
accrued for environmental liabilities; potential limitations in our
or our customers' abilities to access credit and non-compliance
with their contractual obligations, including payment obligations;
activity in repurchasing shares of our common stock under our share
repurchase program; financial and non-financial covenants and
restrictions on the operation of our business contained in
agreements governing our debt; our ability to successfully
identify, consummate and integrate acquisitions and realize any or
all of the anticipated synergies or other benefits of acquisitions;
the effects that acquisitions may have on our financial leverage;
risks associated with acquisitions generally, such as the inability
to obtain, or delays in obtaining, required approvals under
applicable antitrust legislation and other regulatory and
third-party consents and approvals; lower than expected
future levels of revenues and higher than expected future costs;
failure or inability to implement growth strategies in a timely
manner; the impact of goodwill or other indefinite-lived intangible
asset impairment charges; the impact of long-lived asset impairment
charges; currency fluctuations; global factors, such as trade
measures, military conflicts and political uncertainties, including
changes to current trade regulations, such as Section 232 trade
tariffs and quotas, tax legislation and other regulations which
might adversely impact our business; availability and pricing of
electricity, electrodes and natural gas for mill operations; our
ability to hire and retain key executives and other employees;
competition from other materials or from competitors that have a
lower cost structure or access to greater financial resources;
information technology interruptions and breaches in security; our
ability to make necessary capital expenditures; availability and
pricing of raw materials and other items over which we exert little
influence, including scrap metal, energy and insurance; unexpected
equipment failures; losses or limited potential gains due to
hedging transactions; litigation claims and settlements, court
decisions, regulatory rulings and legal compliance risks; risk of
injury or death to employees, customers or other visitors to our
operations; and civil unrest, protests and riots.
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
FINANCIAL &
OPERATING STATISTICS (UNAUDITED)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in thousands,
except per ton amounts)
|
|
8/31/2024
|
|
5/31/2024
|
|
2/29/2024
|
|
11/30/2023
|
|
8/31/2023
|
|
8/31/2024
|
|
8/31/2023
|
North America Steel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external
customers
|
|
$ 1,559,520
|
|
$ 1,671,358
|
|
$ 1,486,202
|
|
$ 1,592,650
|
|
$ 1,717,979
|
|
$
6,309,730
|
|
$
6,704,305
|
Adjusted
EBITDA
|
|
210,932
|
|
246,304
|
|
222,294
|
|
266,820
|
|
336,843
|
|
946,350
|
|
1,328,431
|
Adjusted EBITDA
margin
|
|
13.5 %
|
|
14.7 %
|
|
15.0 %
|
|
16.8 %
|
|
19.6 %
|
|
15.0 %
|
|
19.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
360
|
|
371
|
|
347
|
|
374
|
|
344
|
|
1,452
|
|
1,390
|
Rebar
|
|
522
|
|
520
|
|
460
|
|
522
|
|
542
|
|
2,024
|
|
1,967
|
Merchant bar and
other
|
|
237
|
|
244
|
|
234
|
|
230
|
|
215
|
|
945
|
|
942
|
Steel
products
|
|
759
|
|
764
|
|
694
|
|
752
|
|
757
|
|
2,969
|
|
2,909
|
Downstream
products
|
|
361
|
|
371
|
|
316
|
|
346
|
|
387
|
|
1,394
|
|
1,466
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Raw
materials
|
|
$
866
|
|
$
970
|
|
$
880
|
|
$
783
|
|
$
838
|
|
$
874
|
|
$
840
|
Steel
products
|
|
843
|
|
891
|
|
905
|
|
892
|
|
932
|
|
882
|
|
977
|
Downstream
products
|
|
1,311
|
|
1,330
|
|
1,358
|
|
1,389
|
|
1,428
|
|
1,346
|
|
1,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of raw materials
per ton
|
|
$
664
|
|
$
717
|
|
$
658
|
|
$
578
|
|
$
606
|
|
$
654
|
|
$
615
|
Cost of ferrous scrap
utilized per ton
|
|
$
321
|
|
$
353
|
|
$
379
|
|
$
343
|
|
$
338
|
|
$
348
|
|
$
349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
522
|
|
$
538
|
|
$
526
|
|
$
549
|
|
$
594
|
|
$
534
|
|
$
628
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe Steel
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external
customers
|
|
$
222,085
|
|
$
208,806
|
|
$
192,500
|
|
$
225,175
|
|
$
273,961
|
|
$
848,566
|
|
$
1,328,791
|
Adjusted
EBITDA
|
|
(3,622)
|
|
(4,192)
|
|
(8,611)
|
|
38,942
|
|
(30,081)
|
|
22,517
|
|
48,473
|
Adjusted EBITDA
margin
|
|
(1.6) %
|
|
(2.0) %
|
|
(4.5) %
|
|
17.3 %
|
|
(11.0) %
|
|
2.7 %
|
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External tons
shipped
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rebar
|
|
98
|
|
80
|
|
64
|
|
122
|
|
151
|
|
364
|
|
684
|
Merchant bar and
other
|
|
221
|
|
217
|
|
211
|
|
221
|
|
238
|
|
870
|
|
1,043
|
Steel
products
|
|
319
|
|
297
|
|
275
|
|
343
|
|
389
|
|
1,234
|
|
1,727
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
per ton
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
products
|
|
$
667
|
|
$
681
|
|
$
673
|
|
$
633
|
|
$
682
|
|
$
663
|
|
$
749
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of ferrous scrap
utilized per ton
|
|
$
383
|
|
$
389
|
|
$
394
|
|
$
365
|
|
$
398
|
|
$
383
|
|
$
395
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel products metal
margin per ton
|
|
$
284
|
|
$
292
|
|
$
279
|
|
$
268
|
|
$
284
|
|
$
280
|
|
$
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging Businesses
Group
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to external
customers
|
|
$
195,571
|
|
$
188,593
|
|
$
155,994
|
|
$
177,239
|
|
$
208,559
|
|
$
717,397
|
|
$
721,746
|
Adjusted
EBITDA
|
|
42,519
|
|
38,220
|
|
17,929
|
|
30,862
|
|
42,612
|
|
129,530
|
|
138,985
|
Adjusted EBITDA
margin
|
|
21.7 %
|
|
20.3 %
|
|
11.5 %
|
|
17.4 %
|
|
20.4 %
|
|
18.1 %
|
|
19.3 %
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
BUSINESS SEGMENTS
(UNAUDITED)
|
|
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
|
8/31/2024
|
|
5/31/2024
|
|
2/29/2024
|
|
11/30/2023
|
|
8/31/2023
|
|
8/31/2024
|
|
8/31/2023
|
Net sales to
external customers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Steel
Group
|
|
$ 1,559,520
|
|
$ 1,671,358
|
|
$ 1,486,202
|
|
$ 1,592,650
|
|
$ 1,717,979
|
|
$ 6,309,730
|
|
$ 6,704,305
|
Europe Steel
Group
|
|
222,085
|
|
208,806
|
|
192,500
|
|
225,175
|
|
273,961
|
|
848,566
|
|
1,328,791
|
Emerging Businesses
Group
|
|
195,571
|
|
188,593
|
|
155,994
|
|
177,239
|
|
208,559
|
|
717,397
|
|
721,746
|
Corporate and
Other
|
|
18,973
|
|
9,728
|
|
13,591
|
|
7,987
|
|
8,729
|
|
50,279
|
|
44,691
|
Total net sales to
external customers
|
|
$ 1,996,149
|
|
$ 2,078,485
|
|
$ 1,848,287
|
|
$ 2,003,051
|
|
$ 2,209,228
|
|
$ 7,925,972
|
|
$ 8,799,533
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America Steel
Group
|
|
$
210,932
|
|
$
246,304
|
|
$
222,294
|
|
$
266,820
|
|
$
336,843
|
|
$
946,350
|
|
$ 1,328,431
|
Europe Steel
Group
|
|
(3,622)
|
|
(4,192)
|
|
(8,611)
|
|
38,942
|
|
(30,081)
|
|
22,517
|
|
48,473
|
Emerging Businesses
Group
|
|
42,519
|
|
38,220
|
|
17,929
|
|
30,862
|
|
42,612
|
|
129,530
|
|
138,985
|
Corporate and
Other
|
|
(25,189)
|
|
(37,070)
|
|
(34,512)
|
|
(30,987)
|
|
(38,171)
|
|
(127,758)
|
|
(131,185)
|
Total adjusted
EBITDA
|
|
$
224,640
|
|
$
243,262
|
|
$
197,100
|
|
$
305,637
|
|
$
311,203
|
|
$
970,639
|
|
$ 1,384,704
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
|
|
|
Three Months Ended
August 31,
|
|
Year Ended August
31,
|
(in thousands,
except share and per share data)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
Net sales
|
|
$
1,996,149
|
|
$
2,209,228
|
|
$
7,925,972
|
|
$
8,799,533
|
Costs and operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of goods
sold
|
|
1,673,087
|
|
1,784,142
|
|
6,567,287
|
|
6,987,618
|
Selling, general and
administrative expenses
|
|
170,612
|
|
175,185
|
|
668,413
|
|
646,041
|
Interest
expense
|
|
12,142
|
|
8,259
|
|
47,893
|
|
40,127
|
Asset
impairments
|
|
6,558
|
|
3,734
|
|
6,708
|
|
3,780
|
Net costs and operating
expenses
|
|
1,862,399
|
|
1,971,320
|
|
7,290,301
|
|
7,677,566
|
Earnings before income
taxes
|
|
133,750
|
|
237,908
|
|
635,671
|
|
1,121,967
|
Income taxes
|
|
29,819
|
|
53,742
|
|
150,180
|
|
262,207
|
Net earnings
|
|
$
103,931
|
|
$
184,166
|
|
$
485,491
|
|
$
859,760
|
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.91
|
|
$
1.58
|
|
$
4.19
|
|
$
7.34
|
Diluted
|
|
0.90
|
|
1.56
|
|
4.14
|
|
7.25
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
|
$
0.18
|
|
$
0.16
|
|
$
0.68
|
|
$
0.64
|
Average basic shares
outstanding
|
|
114,703,599
|
|
116,725,241
|
|
115,844,977
|
|
117,077,703
|
Average diluted shares
outstanding
|
|
115,931,570
|
|
118,218,222
|
|
117,152,552
|
|
118,606,271
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS (UNAUDITED)
|
(in thousands,
except share and per share data)
|
|
August 31,
2024
|
|
August 31,
2023
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
857,922
|
|
$
592,332
|
Accounts receivable
(less allowance for doubtful accounts of $3,494 and
$4,135)
|
|
1,158,946
|
|
1,240,217
|
Inventories
|
|
971,755
|
|
1,035,582
|
Prepaid and other
current assets
|
|
285,489
|
|
276,024
|
Assets held for
sale
|
|
18,656
|
|
—
|
Total current
assets
|
|
3,292,768
|
|
3,144,155
|
Property, plant and
equipment:
|
|
|
|
|
Land
|
|
165,674
|
|
160,067
|
Buildings and
improvements
|
|
1,166,788
|
|
1,071,102
|
Equipment
|
|
3,317,537
|
|
3,089,007
|
Construction in
process
|
|
261,321
|
|
213,651
|
|
|
4,911,320
|
|
4,533,827
|
Less accumulated
depreciation and amortization
|
|
(2,334,184)
|
|
(2,124,467)
|
Property, plant and
equipment, net
|
|
2,577,136
|
|
2,409,360
|
Intangible assets,
net
|
|
234,869
|
|
259,161
|
Goodwill
|
|
385,630
|
|
385,821
|
Other noncurrent
assets
|
|
327,436
|
|
440,597
|
Total assets
|
|
$
6,817,839
|
|
$
6,639,094
|
Liabilities and
stockholders' equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
350,550
|
|
$
364,390
|
Accrued expenses and
other payables
|
|
445,514
|
|
438,811
|
Current maturities of
long-term debt and short-term borrowings
|
|
38,786
|
|
40,513
|
Total current
liabilities
|
|
834,850
|
|
843,714
|
Deferred income
taxes
|
|
276,908
|
|
306,801
|
Other noncurrent
liabilities
|
|
255,222
|
|
253,181
|
Long-term
debt
|
|
1,150,835
|
|
1,114,284
|
Total
liabilities
|
|
2,517,815
|
|
2,517,980
|
Stockholders'
equity:
|
|
|
|
|
Common stock, par value
$0.01 per share; authorized 200,000,000 shares; issued 129,060,664
shares; outstanding 114,104,057 and 116,515,427 shares
|
|
1,290
|
|
1,290
|
Additional paid-in
capital
|
|
407,232
|
|
394,672
|
Accumulated other
comprehensive loss
|
|
(85,952)
|
|
(3,778)
|
Retained
earnings
|
|
4,503,885
|
|
4,097,262
|
Less treasury stock,
14,956,607 and 12,545,237 shares at cost
|
|
(526,679)
|
|
(368,573)
|
Stockholders'
equity
|
|
4,299,776
|
|
4,120,873
|
Stockholders' equity
attributable to non-controlling interests
|
|
248
|
|
241
|
Total stockholders'
equity
|
|
4,300,024
|
|
4,121,114
|
Total liabilities and
stockholders' equity
|
|
$
6,817,839
|
|
$
6,639,094
|
COMMERCIAL METALS
COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
|
|
|
Year Ended August
31,
|
(in
thousands)
|
|
2024
|
|
2023
|
Cash flows from (used
by) operating activities:
|
|
|
|
|
Net
earnings
|
|
$
485,491
|
|
$
859,760
|
Adjustments to
reconcile net earnings to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
280,367
|
|
218,830
|
Stock-based
compensation
|
|
45,066
|
|
60,529
|
Deferred income taxes
and other long-term taxes
|
|
(15,319)
|
|
51,919
|
Write-down of
inventory
|
|
5,098
|
|
11,286
|
Asset
impairments
|
|
6,708
|
|
3,780
|
Net loss on sales of
assets
|
|
3,321
|
|
2,327
|
Loss on debt
extinguishment
|
|
11
|
|
179
|
Other
|
|
2,745
|
|
4,471
|
Settlement of New
Markets Tax Credit transactions
|
|
(6,748)
|
|
(17,659)
|
Changes in operating
assets and liabilities, net of acquisitions
|
|
92,968
|
|
148,681
|
Net cash flows from
operating activities
|
|
899,708
|
|
1,344,103
|
Cash flows from (used
by) investing activities:
|
|
|
|
|
Capital
expenditures
|
|
(324,271)
|
|
(606,665)
|
Acquisitions, net of
cash acquired
|
|
—
|
|
(234,717)
|
Proceeds from
government grants related to property, plant and
equipment
|
|
—
|
|
5,000
|
Other
|
|
1,269
|
|
1,155
|
Net cash flows used by
investing activities
|
|
(323,002)
|
|
(835,227)
|
Cash flows from (used
by) financing activities:
|
|
|
|
|
Repayments of
long-term debt
|
|
(36,346)
|
|
(389,756)
|
Debt issuance and
extinguishment
|
|
—
|
|
(1,897)
|
Proceeds from accounts
receivable facilities
|
|
175,322
|
|
330,061
|
Repayments under
accounts receivable facilities
|
|
(183,347)
|
|
(349,015)
|
Treasury stock
acquired
|
|
(182,932)
|
|
(101,406)
|
Tax withholdings
related to share settlements, net of purchase plans
|
|
(7,595)
|
|
(12,539)
|
Dividends
|
|
(78,868)
|
|
(74,936)
|
Contribution from
non-controlling interest
|
|
7
|
|
9
|
Net cash flows used by
financing activities
|
|
(313,759)
|
|
(599,479)
|
Effect of exchange rate
changes on cash
|
|
891
|
|
7,077
|
Increase
(decrease) in cash, restricted cash, and cash
equivalents
|
|
263,838
|
|
(83,526)
|
Cash, restricted cash
and cash equivalents at beginning of period
|
|
595,717
|
|
679,243
|
Cash, restricted cash
and cash equivalents at end of period
|
|
$
859,555
|
|
$
595,717
|
|
|
|
|
|
Supplemental
information:
|
|
|
|
|
Cash paid for income
taxes
|
|
$
158,455
|
|
$
199,883
|
Cash paid for
interest
|
|
49,463
|
|
64,431
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
857,922
|
|
$
592,332
|
Restricted
cash
|
|
1,633
|
|
3,385
|
Total cash, restricted
cash and cash equivalents
|
|
$
859,555
|
|
$
595,717
|
|
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL
MEASURES (UNAUDITED)
This press release contains financial measures not derived in
accordance with U.S. generally accepted accounting principles
("GAAP"). Reconciliations to the most comparable GAAP measure are
provided below.
Adjusted EBITDA, core EBITDA, 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 to adjusted EBITDA and core
EBITDA is provided below:
|
|
Three Months
Ended
|
|
Year
Ended
|
(in
thousands)
|
|
8/31/2024
|
|
5/31/2024
|
|
2/29/2024
|
|
11/30/2023
|
|
8/31/2023
|
|
8/31/2024
|
|
8/31/2023
|
Net earnings
|
|
$
103,931
|
|
$
119,440
|
|
$
85,847
|
|
$
176,273
|
|
$
184,166
|
|
$
485,491
|
|
$
859,760
|
Interest
expense
|
|
12,142
|
|
12,117
|
|
11,878
|
|
11,756
|
|
8,259
|
|
47,893
|
|
40,127
|
Income
taxes
|
|
29,819
|
|
40,867
|
|
31,072
|
|
48,422
|
|
53,742
|
|
150,180
|
|
262,207
|
Depreciation and
amortization
|
|
72,190
|
|
70,692
|
|
68,299
|
|
69,186
|
|
61,302
|
|
280,367
|
|
218,830
|
Asset
impairments
|
|
6,558
|
|
146
|
|
4
|
|
—
|
|
3,734
|
|
6,708
|
|
3,780
|
Adjusted
EBITDA
|
|
224,640
|
|
243,262
|
|
197,100
|
|
305,637
|
|
311,203
|
|
970,639
|
|
1,384,704
|
Non-cash equity
compensation
|
|
9,173
|
|
12,846
|
|
14,988
|
|
8,059
|
|
16,529
|
|
45,066
|
|
60,529
|
Settlement of New
Markets Tax Credit transactions
|
|
(6,748)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,748)
|
|
(17,659)
|
Core EBITDA
|
|
$
227,065
|
|
$
256,108
|
|
$
212,088
|
|
$
313,696
|
|
$
327,732
|
|
$
1,008,957
|
|
$
1,427,574
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,996,149
|
|
$
2,078,485
|
|
$
1,848,287
|
|
$
2,003,051
|
|
$
2,209,228
|
|
$
7,925,972
|
|
$
8,799,533
|
Core EBITDA
margin
|
|
11.4 %
|
|
12.3 %
|
|
11.5 %
|
|
15.7 %
|
|
14.8 %
|
|
12.7 %
|
|
16.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net earnings to adjusted earnings is
provided below:
|
|
Three Months
Ended
|
|
Year
Ended
|
(in thousands,
except per share data)
|
|
8/31/2024
|
|
5/31/2024
|
|
2/29/2024
|
|
11/30/2023
|
|
8/31/2023
|
|
8/31/2024
|
|
8/31/2023
|
Net earnings
|
|
$ 103,931
|
|
$ 119,440
|
|
$
85,847
|
|
$ 176,273
|
|
$
184,166
|
|
$
485,491
|
|
$ 859,760
|
Asset
impairments
|
|
6,558
|
|
146
|
|
4
|
|
—
|
|
3,734
|
|
6,708
|
|
3,780
|
Settlement of New
Markets Tax Credit transactions
|
|
(6,748)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(6,748)
|
|
(17,659)
|
Total adjustments
(pre-tax)
|
|
$ (190)
|
|
$
146
|
|
$
4
|
|
$
—
|
|
$ 3,734
|
|
$
(40)
|
|
$
(13,879)
|
Related tax effects on
adjustments
|
|
40
|
|
(31)
|
|
(1)
|
|
—
|
|
(784)
|
|
8
|
|
2,915
|
Adjusted
earnings
|
|
$ 103,781
|
|
$ 119,555
|
|
$
85,850
|
|
$ 176,273
|
|
$
187,116
|
|
$
485,459
|
|
$ 848,796
|
Net earnings per
diluted share
|
|
$ 0.90
|
|
$
1.02
|
|
$
0.73
|
|
$
1.49
|
|
$
1.56
|
|
$
4.14
|
|
$
7.25
|
Adjusted earnings per
diluted share
|
|
$ 0.90
|
|
$
1.02
|
|
$
0.73
|
|
$
1.49
|
|
$
1.58
|
|
$
4.14
|
|
$
7.16
|
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SOURCE Commercial Metals Company