/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE
SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES/
Stelco Holdings Inc. third quarter highlights
include:
- Revenue of $1,354 million for
the quarter, up 47% from Q2 2021
- Operating income of $770
million for the quarter, representing a 57% margin for the
quarter
- Adjusted EBITDA* of $787
million for the quarter, representing a 58% Adjusted EBITDA*
margin, up 92% from Q2 2021
- Adjusted Net Income* of $629
million and Adjusted Net Income* per share1 of
$7.60
- Shipping Volume* of 710,000 tons for the quarter up 5% from
Q2 2021
- Record cash generation resulting in $410 million cash balance at the end of Q3 while
returning a record $413 million to
shareholders during the quarter
- Average Selling Price* per net ton of $1,808, up 40% from Q2 2021
- Declared quarterly dividend of $0.30 per share, up 50%, payable on November 30, 2021
HAMILTON, ON, Nov. 10, 2021 /CNW/ - Stelco Holdings Inc.
("Stelco Holdings" or the "Company"), (TSX: STLC), a
low cost, integrated and independent steelmaker with one of the
newest and most technologically advanced integrated steelmaking
facilities in North America, today
announced financial results of the Company for the three and nine
months ended September 30, 2021.
Stelco Holdings is the 100% owner of Stelco Inc. ("Stelco"),
the operating company.
Selected Financial Information:
(in millions Canadian
dollars, except
volume, per share and nt figures)
|
Q3
2021
|
Q3 2020
|
Change
|
Q2 2021
|
Change
|
YTD
2021
|
YTD 2020
|
Change
|
Revenue
($)
|
1,354
|
|
237
|
|
471
|
%
|
918
|
|
47
|
%
|
2,937
|
|
1,093
|
|
169
|
%
|
Operating income
(loss) ($)
|
770
|
|
(69)
|
|
NM
|
393
|
|
96
|
%
|
1,330
|
|
(46)
|
|
NM
|
Net income (loss)
($)
|
614
|
|
(88)
|
|
NM
|
363
|
|
69
|
%
|
1,096
|
|
(112)
|
|
NM
|
Adjusted Net Income
(Loss) ($) *
|
629
|
|
(81)
|
|
NM
|
383
|
|
64
|
%
|
1,184
|
|
(97)
|
|
NM
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share
(diluted) ($) 1
|
7.42
|
|
(0.99)
|
|
NM
|
4.09
|
|
81
|
%
|
12.64
|
|
(1.26)
|
|
NM
|
Adjusted Net Income
(Loss) per common
share (diluted) ($) * 1
|
7.60
|
|
(0.91)
|
|
NM
|
4.32
|
|
76
|
%
|
13.65
|
|
(1.09)
|
|
NM
|
|
|
|
|
|
|
|
|
|
Average Selling Price
per nt ($) *
|
1,808
|
|
683
|
|
165
|
%
|
1,292
|
|
40
|
%
|
1,360
|
|
698
|
|
95
|
%
|
Shipping Volume (in
thousands of nt) *
|
710
|
|
334
|
|
113
|
%
|
679
|
|
5
|
%
|
2,064
|
|
1,531
|
|
35
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Loss) ($) *
|
787
|
|
(39)
|
|
NM
|
410
|
|
92
|
%
|
1,382
|
|
15
|
|
9,113
|
%
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
(Loss) per nt ($) *
|
1,108
|
|
(117)
|
|
NM
|
604
|
|
83
|
%
|
670
|
|
10
|
|
6,600
|
%
|
*
|
See "Non-IFRS
measures" for a description of certain Non-IFRS measures used in
this Press Release and "Non-IFRS Measures Reconciliation"
below.
|
1
|
Based on weighted
average of number of shares outstanding during Q3 2021 of 82,766
thousand, which is higher than the September 30, 2021 shares
outstanding of 77,315 thousand, due to the repurchase and
cancellation of 11,398 thousand shares in August 2021.
|
NM = Not
Meaningful
|
"I am thrilled to today announce the best quarterly results in
Stelco's history. Once again, our business has demonstrated our
ability to take full advantage of strong market conditions and
deliver record results for our shareholders," said Alan Kestenbaum, Executive Chairman and Chief
Executive Officer. "In the third quarter we realized exceptional
value from our strategic capital investments and maintained our
industry leading low-cost position while at the same time
demonstrating the benefits of our tactical flexibility model to
achieve very favorable pricing. As a result, we were able to record
$787 million of Adjusted EBITDA –
almost double our record results from the previous quarter – and
grow our already industry-leading Adjusted EBITDA
margin1 to 58%."
"Stelco's record results continued to be fueled by management's
consistent focus on reducing costs through strategic investments
and a top-down focus to keep revenue flowing through to the bottom
line," said Kestenbaum. "By year end, we expect to substantially
complete the upgrade of our Lake Erie Works coke battery which will
further improve our cost position, and we anticipate further gains
through reduced electricity costs and lower CO2 emissions upon the
completion of our carbon-reducing 65MW electricity cogeneration
project in the first half of 2022. With rising electricity costs
around the world increasingly impacting everyone and especially our
electricity dependent competitors, we expect to receive even more
significant benefits than originally planned from this asset both
on a real and relative basis."
"Additionally, in keeping with our continued focus on returning
cash to shareholders we are increasing our dividend by 50%,"
continued Kestenbaum. "This represents an approximately 3% yield
and will bring the total returned to shareholders this year up to
$454 million."
Paul Scherzer, Chief Financial
Officer, added, "The commitment of the entire Stelco team to
maintaining a low-cost structure, as evidenced by our
industry-leading profit margins, has been at the core of our
success and has allowed the business to capitalize on favourable
pricing and strong demand in recent months. We expect these
conditions to continue through the fourth quarter of 2021 and
expect our shipments will remain consistent with what we delivered
on a quarterly basis in the first half of the year."
"We have experienced tremendous growth and improvement from
where our business was a year ago due in large part to our
successful project to introduce North
America's first smart blast furnace and the resulting gains
in our productivity," continued Scherzer. "During the third quarter
we were able to continue funding the remaining components of our
strategic capital plan with internally generated funds and
completed the quarter with a cash balance of $410 million, which has continued to grow. Our
management team remains closely aligned with the interests of our
shareholders and we will continue to explore opportunities to
generate accretive value while staying true to our core principles
and deepening our competitive advantage."
_____________________________
|
1 Represents
Adjusted EBITDA for the quarter divided by total revenue for the
quarter.
|
Third Quarter 2021 Financial Review:
Compared to Q3 2020
Q3 2021 revenue increased $1,117
million, or 471%, from $237
million in Q3 2020, primarily due to a 165% increase in
Average Selling Price per net ton, a 113% increase in Shipping
Volumes and higher non-steel sales of $61
million. The Average Selling Price per net ton of our steel
products increased from $683 per nt
in Q3 2020 to $1,808 per nt in Q3
2021. Our Shipping Volumes increased 376 thousand nt to 710
thousand nt from 334 thousand nt in Q3 2020, which was impacted by
the Company's blast furnace upgrade project resulting in lower
steel inventory available for sale during Q3 2020. Non-steel sales
increased $61 million, from
$9 million in Q3 2020 to $70 million during Q3 2021.
The Company realized operating income of $770 million for the quarter, compared to an
operating loss of $69 million in Q3 2020, a change of
$839 million consisting of an increase in revenue of
$1,117 million, partly offset by
an increase in cost of goods sold of $274 million and higher
selling, general and administrative expenses of
$4 million.
Finance costs increased by $10
million, from $16 million in
Q3 2020, due to the following: $3 million related to the
remeasurement impact from our employee benefit commitment and
$5 million related to the
period-over-period impact of foreign exchange translation on U.S.
dollar denominated working capital.
The Company realized net income of $614 million for the
quarter, compared to a net loss of $88
million in the third quarter of 2020, a change of
$702 million primarily due to the following: $839 million
increase in operating income and $11 million deferred tax
recovery, partly offset by $125 million current tax expense,
$10 million in higher finance costs, $9 million increase
in finance and other loss, and $3 million increase in other
costs. Adjusted Net Income totaled $629 million in Q3 2021, a
change of $710 million from an Adjusted Net Loss of
$81 million in Q3 2020.
Adjusted EBITDA in Q3 2021 totaled $787
million, an increase of $826
million from an Adjusted EBITDA Loss of $39 million in Q3 2020, which reflects an
increase in Average Selling Price per net ton, higher Shipping
Volumes and higher non-steel sales during the period.
Compared to Q2 2021
Q3 2021 revenue increased $436
million, or 47%, from $918
million in Q2 2021, primarily due to 40% higher Average
Selling Price per net ton, a 5% increase in Shipping Volumes, from
679 thousand nt in Q2 2021 to 710 thousand nt in Q3 2021, and an
increase in non-steel sales of $29
million.
The Company realized an operating income of $770 million in Q3 2021 compared to $393 million in Q2 2021, and an Adjusted EBITDA
of $787 million, up 92% compared to
$410 million during Q2 2021, which
mostly reflects an increase in Average Selling Price per net ton
and Shipping Volumes, and higher non-steel sales.
Summary of Net Tons Shipped by Product:
(in thousands of nt)
Tons Shipped by
Product
|
Q3
2021
|
Q3 2020
|
Change
|
Q2 2021
|
Change
|
YTD
2021
|
YTD 2020
|
Change
|
Hot-rolled
|
542
|
211
|
157
|
%
|
490
|
11
|
%
|
1,499
|
1,081
|
39
|
%
|
Coated
|
123
|
76
|
62
|
%
|
142
|
(13)
|
%
|
405
|
297
|
36
|
%
|
Cold-rolled
|
11
|
16
|
(31)
|
%
|
9
|
22
|
%
|
52
|
66
|
(21)
|
%
|
Other
a
|
34
|
31
|
10
|
%
|
38
|
(11)
|
%
|
108
|
87
|
24
|
%
|
Total
|
710
|
334
|
113
|
%
|
679
|
5
|
%
|
2,064
|
1,531
|
35
|
%
|
|
|
|
|
|
|
|
|
|
Shipments by
Product (%)
|
|
|
|
|
|
|
|
|
Hot-rolled
|
76
|
%
|
63
|
%
|
|
72
|
%
|
|
73
|
%
|
71
|
%
|
|
Coated
|
17
|
%
|
23
|
%
|
|
21
|
%
|
|
20
|
%
|
19
|
%
|
|
Cold-rolled
|
2
|
%
|
5
|
%
|
|
1
|
%
|
|
2
|
%
|
4
|
%
|
|
Other
a
|
5
|
%
|
9
|
%
|
|
6
|
%
|
|
5
|
%
|
6
|
%
|
|
Total
|
100
|
%
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
100
|
%
|
|
a
|
Includes other steel
products: pig iron, slabs and non-prime steel sales.
|
Statement of Financial Position and Liquidity:
On a consolidated basis, Stelco Holdings ended Q3 2021 with cash
of $410 million and $224 million of availability under
its revolving credit facility at September
30, 2021. The following table shows selected information
regarding the Stelco Holdings' consolidated balance sheet as at the
noted dates:
(millions of Canadian
dollars)
|
|
|
|
As at
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Cash
|
410
|
|
59
|
Trade and other
receivables
|
534
|
|
183
|
Inventories
|
487
|
|
509
|
Total current
assets
|
1,456
|
|
791
|
|
|
|
|
Derivative
asset
|
127
|
|
133
|
Property, plant and
equipment, net
|
969
|
|
845
|
Deferred tax
asset
|
56
|
|
—
|
Total non-current
assets
|
1,162
|
|
988
|
Total
assets
|
2,618
|
|
1,779
|
|
|
|
|
LIABILITIES
|
|
|
|
Trade and other
payables
|
740
|
|
668
|
Derivative
liabilities
|
—
|
|
84
|
Asset-based lending
facility
|
15
|
|
15
|
Income taxes
payable
|
125
|
|
—
|
Obligations to
independent employee trusts
|
221
|
|
36
|
Total current
liabilities
|
1,152
|
|
847
|
|
|
|
|
Asset-based lending
facility
|
72
|
|
113
|
Obligations to
independent employee trusts
|
358
|
|
462
|
Total non-current
liabilities
|
521
|
|
651
|
Total
liabilities
|
1,673
|
|
1,498
|
|
|
|
|
Total
equity
|
945
|
|
281
|
Stelco Holdings and its subsidiaries ended Q3 2021 with current
assets of $1.5 billion, which
exceeded current liabilities of $1.2 billion by $304 million.
Non-current assets include the derivative asset representing the
fair value of Stelco's option to purchase a 25% ownership interest
in the Minntac mine. Stelco Holdings' liabilities include
$579 million of obligations to independent pension and OPEB
trusts, which includes $470 million of employee benefit
commitments and $109 million under a mortgage note payable
associated with the June 2018 land
purchase. Non-current liabilities of $521 million as at
September 30, 2021 include
$358 million of obligations to independent pension and OPEB
trusts. Stelco Holdings' consolidated equity totaled
$945 million at September 30,
2021.
Declaration of Quarterly Dividend
Stelco's Board of Directors approved the payment of a regular
quarterly dividend of $0.30 per share
which will be paid on November 30,
2021, to shareholders of record as of the close of business
on November 24, 2021.
The regular quarterly dividend has been designated as an
"eligible dividend" for purposes of the Income Tax Act
(Canada).
Quarterly Results Conference Call
Stelco management will host a conference call to discuss its
results tomorrow, Thursday, November 11,
2021, at 9:00 a.m. ET. To
access the call, please dial 1 (833) 950-0062 or 1 (226) 828-7575
and use access code 460732. The conference call will also be
webcasted live on the Investor Relations section of Stelco's web
site at https://investors.stelco.com. A presentation that will
accompany the conference call will also be available on the website
prior to the conference call. Following the conclusion of the live
call, a replay of the webcast will be available on the Investor
Relations section of the Company's website for at least 90 days. A
telephonic replay of the conference call will also be available
from 12:00 p.m. ET on November 11, 2021 until 11:59 p.m. ET on November
25, 2021 by dialing 1 (866) 813-9403 or 1 (226) 828-7578 and
using the access code 086064.
Consolidated Financial Statements and Management's Discussion
and Analysis
The Company's unaudited consolidated financial statements for
the three and nine months ended September
30, 2021, and Management's Discussion & Analysis thereon
are available under the Company's profile on SEDAR at
www.sedar.com.
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North America. Stelco produces
flat-rolled value-added steels, including premium-quality coated,
cold-rolled and hot-rolled steel products. With first-rate gauge,
crown, and shape control, as well as reliable uniformity of
mechanical properties, our steel products are supplied to customers
in the construction, automotive and energy industries
across Canada and the United States as well as
to a variety of steel services centres, which are regional
distributors of steel products.
Non-IFRS Measures
This news release refers to certain non-IFRS measures that are
not recognized under International Financial Reporting Standards
("IFRS") and do not have a standardized meaning prescribed by IFRS.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. We use non-IFRS measures including "Adjusted
Net Income", "Adjusted Net Income per common share (diluted)",
''Adjusted EBITDA'', ''Adjusted EBITDA per nt'', "Adjusted EBITDA
margin", ''Average Selling Price per nt'', and ''Shipping Volume''
to provide supplemental measures of our operating performance and
thus highlight trends in our core business that may not otherwise
be apparent when relying solely on IFRS financial measures. We also
believe that securities analysts, investors and other interested
parties frequently use non-IFRS measures in the evaluation of
issuers. Our management uses these non-IFRS financial measures to
facilitate operating performance comparisons from period-to-period,
prepare annual operating budgets and forecasts, and drive
performance through our management compensation program. For a
reconciliation of these non-IFRS measures, refer to the Company's
"Non-IFRS Measures Reconciliation" section below. For a definition
of these non-IFRS measures, refer to the Company's MD&A for the
period ended September 30, 2021
available under the Company's profile on SEDAR at
www.sedar.com.
Forward-Looking Information
This release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information
may relate to our future outlook and anticipated events or results
and may include information regarding our financial position,
business strategy, growth strategy, acquisition opportunities,
budgets, operations, financial results, taxes, dividend policy,
plans and objectives of our Company. Particularly, information
regarding our expectations of future results, performance,
achievements, prospects or opportunities is forward-looking
information. In some cases, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "budget", "scheduled", "estimates",
"outlook", "forecasts", "projection", "prospects", "strategy",
"intends", "anticipates" or "does not anticipate", "believes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might",
"will", "will be taken", "occur" or "be achieved". In addition, any
statements that refer to expectations, intentions, projections or
other characterizations of future events or circumstances may be
forward-looking statements. Forward-looking statements are not
historical facts but instead represent management's expectations,
estimates and projections regarding future events or circumstances.
The forward-looking statements contained herein are presented for
the purpose of assisting the holders of our securities and
financial analysts in understanding our financial position and
results of operations as at and for the periods ended on the dates
presented, as well as our financial performance objectives, vision
and strategic goals, and may not be appropriate for other
purposes.
Forward-looking information in this news release includes:
expectations that we will continue to operate the business as one
of the lowest-cost integrated steel producers in North America; expectations regarding the
timing and benefits associated with our LEW coke battery upgrade
project; and expectations that the construction of the cogeneration
facility at our Lake Erie Works will be completed on schedule and
that the facility will further reduce our costs, increase our
energy reliability and improve our environmental footprint.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Certain assumptions in respect of: our ability to complete
new capital projects on schedule and within budget and their
anticipated effects on revenue and costs; our ability to obtain all
applicable regulatory approvals required in connection with new
facilities; our ability to source necessary volumes of raw
materials and other inputs at competitive prices; our facilities
operating at design capacity; the market demand for iron units
continuing to face increased pressure; our ability to supply to new
customers and markets; our ability to effectively manage costs; our
ability to attract and retain key personnel and skilled labour; our
ability to obtain and maintain existing financing on acceptable
terms; currency exchange and interest rates; the impact of
competition; changes in laws, rule, and regulations, including
international trade regulations; our ability to continue to access
the U.S. market without any adverse trade restrictions; upgrades to
existing facilities remaining on schedule and on budget and their
anticipated effects on revenue and costs; and growth in steel
markets and industry trends, as well as those set out in this press
release, are material factors made in preparing the forward-looking
information and management's expectations contained in this press
release.
KEY ASSUMPTIONS UNDERLYING OUR SHIPPING VOLUME ESTIMATES FOR
THE FORTH QUARTER OF 2021
The estimates with respect to our Shipping Volumes during the
fourth quarter of 2021 referenced herein are based on a number of
assumptions in addition to the foregoing assumptions, including,
but not limited to, the following material assumptions: the
Company's ability to continue to access the U.S. market without any
adverse trade restrictions; no significant legal or regulatory
developments, changes in economic conditions, or macro changes in
the competitive environment affecting our business activities;
upgrades to existing facilities remaining on schedule and on budget
and their anticipated effects on revenue and costs; the Company's
ability to attract new customers and further develop and maintain
existing customers; currency exchange and interest rates; the
impact of competition; and growth in steel markets and industry
trends.
We believe that our performance and our ability to achieve these
shipments during the fourth quarter of 2021 depend on a number of
material factors including: (i) sustained global demand growth;
(ii) continued steel production capacity curtailments in
China; (iii) continued fair trade
practices, particularly with respect to the North American market;
(iv) the COVID-19 pandemic not having an adverse impact on North
American demand for our products; (v) continued signs of a broad
economic recovery, together with ongoing economic support from
federal, provincial, and local governments in respect of the
recovery from the COVID-19 pandemic; and (vi) stable supply and
demand fundamentals in the rest of the world. These factors are
also subject to a number of inherent risks, challenges and
assumptions.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents our expectations as of the date of this news release and
are subject to change after such date. Stelco Holdings disclaims
any intention or obligation or undertaking to update publicly or
revise any forward-looking statements, whether written or oral,
whether as a result of new information, future events or otherwise,
except as required by law.
Selected Financial Information
The following includes financial information prepared by
management in accordance with IFRS. This financial information does
not contain all disclosures required by IFRS, and accordingly
should be read in conjunction with Stelco Holdings Inc.'s
Consolidated Financial Statements and MD&A for the period ended
September 30, 2021, which is
available on the Company's website and on SEDAR
(www.sedar.com).
Stelco Holdings Inc.
Consolidated Statements of
Income (Loss)
(unaudited)
|
Three months ended
September
30,
|
Nine months ended
September
30,
|
(millions of Canadian
dollars)
|
2021
|
2020
|
2021
|
2020
|
Revenue from sale of
goods
|
$
|
1,354
|
|
$
|
237
|
|
$
|
2,937
|
|
$
|
1,093
|
Cost of goods
sold
|
571
|
|
297
|
|
1,569
|
|
1,109
|
Gross profit
(loss)
|
783
|
|
(60)
|
|
1,368
|
|
(16)
|
Selling, general and
administrative expenses
|
13
|
|
9
|
|
38
|
|
30
|
Operating income
(loss)
|
770
|
|
(69)
|
|
1,330
|
|
(46)
|
|
|
|
|
|
Other income
(loss) and (expenses)
|
|
|
|
|
Finance
costs
|
(26)
|
|
(16)
|
|
(129)
|
|
(61)
|
Finance and other
income (loss)
|
(13)
|
|
(4)
|
|
(32)
|
|
2
|
Other costs
|
(3)
|
|
—
|
|
(4)
|
|
(6)
|
Share of income (loss)
from joint ventures
|
—
|
|
1
|
|
—
|
|
(1)
|
Income (loss)
before income taxes
|
728
|
|
(88)
|
|
1,165
|
|
(112)
|
Current income tax
expense
|
(125)
|
|
—
|
|
(125)
|
|
—
|
Deferred income tax
recovery
|
11
|
|
—
|
|
56
|
|
—
|
Net income
(loss)
|
$
|
614
|
|
$
|
(88)
|
|
$
|
1,096
|
|
$
|
(112)
|
Stelco Holdings
Inc.
Consolidated
Balance Sheets
(millions of Canadian
dollars) (unaudited)
|
|
As at
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
410
|
|
$
|
59
|
Restricted
cash
|
|
10
|
|
|
8
|
Trade and other
receivables
|
|
534
|
|
|
183
|
Inventories
|
|
487
|
|
|
509
|
Prepaid expenses and
deposits
|
|
15
|
|
|
32
|
Total current
assets
|
$
|
1,456
|
|
$
|
791
|
|
|
|
|
Non-current
assets
|
|
|
|
Derivative
asset
|
|
127
|
|
|
133
|
Property, plant and
equipment, net
|
|
969
|
|
|
845
|
Intangible
assets
|
|
8
|
|
|
8
|
Investment in joint
ventures
|
|
2
|
|
|
2
|
Deferred tax
asset
|
|
56
|
|
|
—
|
Total non-current
assets
|
$
|
1,162
|
|
$
|
988
|
Total
assets
|
$
|
2,618
|
|
$
|
1,779
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade and other
payables
|
$
|
740
|
|
$
|
668
|
Derivative
liabilities
|
|
—
|
|
|
84
|
Other
liabilities
|
|
51
|
|
|
44
|
Asset-based lending
facility
|
|
15
|
|
|
15
|
Income taxes
payable
|
|
125
|
|
|
—
|
Obligations to
independent employee trusts
|
|
221
|
|
|
36
|
Total current
liabilities
|
$
|
1,152
|
|
$
|
847
|
|
|
|
|
Non-current
liabilities
|
|
|
|
Provisions
|
|
7
|
|
|
6
|
Pension
benefits
|
|
13
|
|
|
11
|
Other
liabilities
|
|
71
|
|
|
59
|
Asset-based lending
facility
|
|
72
|
|
|
113
|
Obligations to
independent employee trusts
|
|
358
|
|
|
462
|
Total non-current
liabilities
|
$
|
521
|
|
$
|
651
|
Total
liabilities
|
$
|
1,673
|
|
$
|
1,498
|
|
|
|
|
EQUITY
|
|
|
|
Common
shares
|
|
446
|
|
|
512
|
Retained earnings
(Accumulated deficit)
|
|
499
|
|
|
(231)
|
Total
equity
|
$
|
945
|
|
$
|
281
|
Total liabilities
and equity
|
$
|
2,618
|
|
$
|
1,779
|
Non-IFRS Measures Results
The following table provide a reconciliation of net income
(loss) to Adjusted Net Income (loss) for the period indicated:
|
Three months ended
September
30,
|
Nine months ended
September
30,
|
(millions of Canadian
dollars)
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
$
|
614
|
|
$
|
(88)
|
|
$
|
1,096
|
|
$
|
(112)
|
Add back/(Deduct)
following items:
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of
employee benefit commitment 1
|
|
3
|
|
|
—
|
|
|
79
|
|
|
(1)
|
Loss from
commodity-based swaps
|
|
—
|
|
|
4
|
|
|
27
|
|
|
4
|
Loss on derivative
asset
|
|
13
|
|
|
—
|
|
|
6
|
|
|
—
|
Other costs
|
|
3
|
|
|
—
|
|
|
4
|
|
|
6
|
Transaction-based and
other corporate-related costs
|
|
—
|
|
|
1
|
|
|
1
|
|
|
4
|
Other
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
Total adjusted items
before tax
|
|
19
|
|
|
7
|
|
|
117
|
|
|
15
|
Tax impact of above
items
|
|
(4)
|
|
|
—
|
|
|
(29)
|
|
|
—
|
Total adjusted items
after tax
|
|
15
|
|
|
7
|
|
|
88
|
|
|
15
|
Adjusted Net
Income (Loss)
|
$
|
629
|
|
$
|
(81)
|
|
$
|
1,184
|
|
$
|
(97)
|
1
|
Remeasurement of
employee benefit commitment for change in the timing of estimated
cash flows and future funding requirements.
|
The following table provides a reconciliation of net income
(loss) to Adjusted EBITDA (loss) for the periods indicated:
(millions of Canadian
dollars, except where otherwise noted)
|
Three months ended
September
30,
|
Nine months ended
September
30,
|
2021
|
2020
|
2021
|
2020
|
Net income
(loss)
|
$
|
614
|
$
|
(88)
|
$
|
1,096
|
$
|
(112)
|
Add back/(Deduct)
following items:
|
|
|
|
|
Finance
costs
|
26
|
16
|
129
|
61
|
Income tax expense
(recovery):
|
|
|
|
|
Current
|
125
|
—
|
125
|
—
|
Deferred
|
(11)
|
—
|
(56)
|
—
|
Depreciation
|
17
|
27
|
50
|
52
|
Loss from
commodity-based swaps
|
—
|
4
|
27
|
4
|
Loss on derivative
asset
|
13
|
—
|
6
|
—
|
Other costs
|
3
|
—
|
4
|
6
|
Transaction-based and
other corporate-related costs
|
—
|
1
|
1
|
4
|
Finance
income
|
—
|
(1)
|
—
|
(2)
|
Other
|
—
|
2
|
—
|
2
|
Adjusted EBITDA
(Loss)
|
$
|
787
|
$
|
(39)
|
$
|
1,382
|
$
|
15
|
|
|
|
|
|
Adjusted EBITDA as
a percentage of total revenue
|
58
|
%
|
NM
|
47
|
%
|
1
|
%
|
SOURCE Stelco