FORT WAYNE, Ind., July 18,
2016 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS:
STLD) today announced second quarter 2016 net income of
$142 million, or $0.58 per diluted share, on net sales of
$2.0 billion. Comparatively,
prior year second quarter net sales were $2.0 billion, with adjusted net income of
$53 million, or $0.22 per diluted share, which excludes certain
non-cash inventory valuation adjustments and other costs primarily
related to idling the company's Minnesota Operations.
Sequential first quarter 2016 net sales were $1.7 billion, with net income of $63 million, or $0.26 per diluted share.
"During the second quarter 2016, continued positive momentum in
the flat roll steel supply environment resulted in significantly
improved sequential consolidated operating earnings, which
increased over 94 percent to $256
million, " said Mark D.
Millett, President and Chief Executive Officer.
"Year-over-year first half flat roll steel import levels have
declined approximately 25 percent and customer inventory levels are
balanced with current demand requirements, supporting higher
domestic flat roll steel mill utilization. The domestic steel
demand outlook is relatively unchanged and steady, with the heavy
equipment, agricultural and energy markets remaining weak, while
automotive and construction continues to be strong.
"We also saw improved volumes and profitability in our metals
recycling platform for the second quarter 2016," continued Millett.
"Ferrous scrap demand improved, resulting in both higher volumes
and expanded metal spread through price increases. Earnings
from our fabrication operations declined in the quarter, due to
increased steel costs and lower selling values. However, we
continue to experience steady demand from the non-residential
construction sector. Our cash generation continues to be
strong, resulting in record liquidity of over $2.2 billion at the end of June 2016, providing a firm foundation for
growth."
Additional Second Quarter 2016 Comments
Second quarter 2016 operating income for the company's steel
operations increased 104 percent to $277
million sequentially, based on improved metal spread and a
nine percent improvement in shipments as volumes increased at all
of the company's steel locations, except the Engineered Bar
Products Division, which continues to experience a challenging
demand environment. The company's average steel product
price increased more than consumed raw material scrap costs,
resulting in steel metal spread expansion. The second quarter
2016 average product selling price for the company's steel
operations increased $66 to
$640 per ton. The average
ferrous scrap cost per ton melted increased $43 to $227 per
ton.
Second quarter 2016 operating income attributable to the
company's sheet products increased 159 percent when compared to the
sequential first quarter. The company's flat roll shipments
increased eight percent, and metal spread also expanded, as price
improvements outpaced increased scrap costs. Operating income
from long products increased 25 percent, as shipments improved 14
percent, more than offsetting metal spread compression related to
generally flat average product pricing coupled with increased scrap
costs. The company's steel production utilization rate was 95
percent in the second quarter 2016, compared to 88 percent in the
sequential quarter and compared to the domestic industry
utilization rate of less than 75
percent.
The company's metals recycling operations achieved a meaningful
improvement in profitability based on a 30% improvement in ferrous
metal margin, combined with increased shipments. Second
quarter 2016 operating income from the metals recycling operations
was $15 million, compared to
$6 million in the sequential quarter.
Ferrous scrap demand and pricing improved due to increased domestic
steel mill utilization.
The company's fabrication operations achieved second quarter
2016 operating income of $24 million,
compared to $32 million in the
sequential first quarter. Shipments were relatively flat in
the quarter; however, as predicted, metal spread compression
occurred as product pricing declined and raw material steel costs
continued to increase.
Year-to-Date June 30, 2016
Comparison
For the six months ended June 30,
2016, net income was $205
million, or $0.84 per diluted
share, on net sales of $3.8 billion,
as compared to adjusted net income of $84
million, or $0.35 per diluted
share, on net sales of $4.1 billion
for the six months ended June 30,
2015. First half 2016 shipments improved for each of the
company's operating platforms; however, same period consolidated
net sales decreased seven percent, as a result of decreased steel
and metals recycling selling values. First half 2016
consolidated operating income increased $168
million, or 76 percent, based primarily on improved earnings
from the company's steel operations. The average year-to-date
selling price for the company's steel operations decreased
$101 to $608 per ton. The average year-to-date
ferrous scrap cost per ton melted decreased $74 to $206 per
ton.
The company generated strong cash flow from operations of
$447 million during the first half of
2016, with relatively flat working capital requirements.
Including its undrawn revolver and available cash of $1.1 billion, the company achieved record
liquidity of over $2.2 billion at
June 30, 2016.
Outlook
"Steel customer inventory levels have moderated and import
levels have declined," said Millett. "When combined with
steady underlying demand, the result has been an improvement in
domestic flat roll steel producer utilization, and we anticipate
improved flat roll metal spreads in the third quarter 2016.
The successful market and product diversification that we achieved
at Columbus during 2015 is one of our key differentiators for
anticipated improved annual profitability in 2016. As an
example, Columbus achieved a record six month production level in
the first half 2016, while continuing to improve and diversify its
value-added production capability.
"However, aside from the construction sector, long product steel
demand is generally challenged, and selling values are under
pressure from excess domestic production capability. The
robust increase in second quarter 2016 long product group shipments
was due, in part, to customers buying ahead of the significant
scrap cost increase in May. While we also
anticipate metal spread expansion for our long products
group in the third quarter 2016, lower shipments related to the
customers buying ahead could offset related margin gain.
"We continue to strengthen our financial position through strong
cash flow generation and the execution of our long-term
strategy. We are well-positioned for growth. Customer
focus, coupled with our market diversification and low-cost
operating platforms, support our ability to maintain our
best-in-class industry performance. We believe we are uniquely
poised to capitalize on growth opportunities that will benefit our
customers, shareholders, employees and communities."
Supplemental Information
|
|
|
|
|
Second
Quarter
|
|
Year to
Date
|
|
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
1Q 2016
|
External Net
Sales
|
|
(Dollars in
thousands)
|
|
|
|
Steel
|
|
|
$
1,466,704
|
|
$
1,375,677
|
|
$
2,683,880
|
|
$
2,761,096
|
|
$
1,217,176
|
|
Fabrication
|
|
170,542
|
|
154,513
|
|
350,597
|
|
315,536
|
|
180,055
|
|
Metals
Recycling
|
|
311,060
|
|
391,210
|
|
580,467
|
|
816,806
|
|
269,407
|
|
Other
|
|
|
75,596
|
|
83,607
|
|
150,259
|
|
159,004
|
|
74,663
|
|
|
|
Consolidated
|
|
$
2,023,902
|
|
$
2,005,007
|
|
$
3,765,203
|
|
$
4,052,442
|
|
$
1,741,301
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
$
276,529
|
|
$
101,212
|
|
$
412,221
|
|
$
218,208
|
|
$
135,692
|
|
Fabrication
|
|
23,512
|
|
27,660
|
|
55,587
|
|
49,021
|
|
32,075
|
|
Metals
Recycling
|
|
14,686
|
|
12,300
|
|
21,046
|
|
11,820
|
|
6,360
|
|
|
|
Operations
|
|
314,727
|
|
141,172
|
|
488,854
|
|
279,049
|
|
174,127
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash Amortization
of Intangible Assets
|
|
(7,232)
|
|
(6,493)
|
|
(14,482)
|
|
(12,816)
|
|
(7,250)
|
|
Profit Sharing
Expense
|
|
(20,176)
|
|
(5,031)
|
|
(29,467)
|
|
(9,629)
|
|
(9,291)
|
|
Non-segment
Operations
|
|
(31,197)
|
|
(52,089)
|
|
(56,818)
|
|
(79,274)
|
|
(25,621)
|
|
|
|
Consolidated
Operating Income
|
|
256,122
|
|
77,559
|
|
388,087
|
|
177,330
|
|
131,965
|
|
Minnesota Idle
Charges (Including Noncontrolling Interests)
|
-
|
|
33,167
|
|
-
|
|
33,167
|
|
-
|
|
Iron Dynamics Outage
Impact
|
|
|
|
-
|
|
9,403
|
|
-
|
|
9,403
|
|
-
|
|
|
|
Adjusted Operating
Income
|
|
$
256,122
|
|
$
120,129
|
|
$
388,087
|
|
$
219,900
|
|
$
131,965
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
Steel (In
tons)
|
|
2,291,162
|
|
2,078,685
|
|
4,413,034
|
|
3,895,056
|
|
2,121,872
|
|
|
|
Steel Shipped to
Internal Locations
|
|
200,200
|
|
163,723
|
|
355,537
|
|
296,372
|
|
155,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication(In
tons)
|
|
142,828
|
|
109,662
|
|
287,954
|
|
222,391
|
|
145,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous
(In 000's of pounds)
|
|
247,492
|
|
253,273
|
|
490,052
|
|
494,853
|
|
242,560
|
|
Ferrous
(In gross tons)
|
|
539,247
|
|
626,264
|
|
1,043,034
|
|
1,268,344
|
|
503,787
|
|
Ferrous Scrap
Shipped to Internal Steel Mills
|
|
807,077
|
|
731,491
|
|
1,608,444
|
|
1,322,412
|
|
801,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Operating
Information
|
|
|
|
|
|
|
|
|
|
|
|
Steel
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External Sales
Price (Per ton shipped)
|
|
$
640
|
|
$
662
|
|
$
608
|
|
$
709
|
|
$
574
|
|
Average Ferrous Cost
(Per ton melted)
|
|
$
227
|
|
$
255
|
|
$
206
|
|
$
280
|
|
$
184
|
|
Flat Roll
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
Butler
Division
|
|
773,823
|
|
721,115
|
|
1,485,961
|
|
1,300,608
|
|
712,138
|
|
Columbus
Division
|
|
804,406
|
|
693,772
|
|
1,561,339
|
|
1,258,013
|
|
756,933
|
|
The
Techs
|
|
209,569
|
|
182,239
|
|
397,838
|
|
328,173
|
|
188,269
|
|
Long Product
Shipments
|
|
|
|
|
|
|
|
|
|
|
|
Structural
and Rail Division-Structural
|
|
292,513
|
|
227,338
|
|
526,559
|
|
464,982
|
|
234,046
|
|
|
-Rail
|
|
64,091
|
|
74,912
|
|
123,033
|
|
141,620
|
|
58,942
|
|
Engineered
Bar Products Division
|
|
122,593
|
|
120,559
|
|
247,793
|
|
276,925
|
|
125,200
|
|
Roanoke
Bar Division
|
|
139,775
|
|
140,795
|
|
265,246
|
|
265,918
|
|
125,471
|
|
Steel
of West Virginia
|
|
84,593
|
|
81,678
|
|
160,802
|
|
155,189
|
|
76,209
|
|
Total
Steel Shipments (In tons)
|
|
2,491,363
|
|
2,242,408
|
|
4,768,571
|
|
4,191,428
|
|
2,277,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel
Production (In tons)
|
|
2,561,354
|
|
2,344,895
|
|
4,924,606
|
|
4,294,158
|
|
2,363,252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fabrication
|
|
|
|
|
|
|
|
|
|
|
|
Average
External Sales Price (Per ton shipped)
|
|
$
1,202
|
|
$
1,409
|
|
$
1,222
|
|
$
1,419
|
|
$
1,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Earnings
Before Taxes
|
|
$
221,294
|
|
$
41,608
|
|
$
318,008
|
|
$
82,100
|
|
$
96,714
|
|
Net
Interest Expense
|
|
35,379
|
|
36,890
|
|
71,529
|
|
79,764
|
|
36,150
|
|
Depreciation
|
|
66,053
|
|
66,281
|
|
131,278
|
|
131,141
|
|
65,225
|
|
Amortization
|
|
7,232
|
|
6,493
|
|
14,482
|
|
12,816
|
|
7,250
|
|
Non-controlling
Interest
|
|
1,526
|
|
6,225
|
|
2,945
|
|
10,032
|
|
1,419
|
|
|
EBITDA
|
|
331,484
|
|
157,497
|
|
538,242
|
|
315,853
|
|
206,758
|
|
Non-cash
Adjustments
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized
Hedging (Gain) Loss
|
|
1,188
|
|
(1,808)
|
|
1,507
|
|
1,407
|
|
319
|
|
Inventory
Valuation
|
235
|
|
18,075
|
|
427
|
|
23,065
|
|
192
|
|
Equity
Based Compensation
|
|
7,287
|
|
6,356
|
|
14,266
|
|
13,555
|
|
6,979
|
|
Financing
Expenses
|
|
-
|
|
-
|
|
-
|
|
3,326
|
|
-
|
|
|
Adjusted
EBITDA
|
|
$
340,194
|
|
$
180,120
|
|
$
554,442
|
|
$
357,206
|
|
$
214,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Conference Call and Webcast
Steel Dynamics, Inc. will hold a conference call to discuss
second quarter 2016 operating and financial results on Tuesday, July 19, 2016, at 10:00
a.m. Eastern Time. You may access the call and find
dial-in information on the Investors section of the company's
website at www.steeldynamics.com. A replay of the call will
be available on our website until 11:59 p.m. Eastern Time on
July 24, 2016.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with annual sales of $7.6 billion in 2015, approximately 7,500
employees, and manufacturing facilities primarily located
throughout the United States
(including six electric-arc-furnace steel mills, ten steel coating
lines, an iron production facility, approximately 75 metals
recycling locations and eight steel fabrication plants).
Note Regarding Non-GAAP Financial Measures
The company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). Management
believes that Adjusted Operating Income, EBITDA and Adjusted
EBITDA, non-GAAP financial measures, provide additional meaningful
information regarding the company's performance and financial
strength. Non-GAAP financial measures should be viewed in addition
to, and not as an alternative for, the company's reported results
prepared in accordance with GAAP. In addition, because not
all companies use identical calculations, EBITDA included in this
release may not be comparable to similarly titled measures of other
companies.
Forward-Looking Statements
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements, which we
generally precede or accompany by such typical conditional words as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project" or "expect," or by the words "may," "will," or "should,"
are intended to be made as "forward-looking," subject to many risks
and uncertainties, within the safe harbor protections of the
Private Securities Litigation Reform Act of 1995. These statements
speak only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include:
(1) the effects of uncertain economic conditions;
(2) cyclical and changing industrial demand; (3) changes
in conditions in any of the steel or scrap-consuming sectors of the
economy which affect demand for our products, including the
strength of the non-residential and residential construction,
automotive, appliance, pipe and tube, and other steel-consuming
industries; (4) fluctuations in the cost of key raw materials
(including steel scrap, iron units, and energy costs) and our
ability to pass-on any cost increases; (5) the impact of
domestic and foreign import price competition;
(6) unanticipated difficulties in integrating or starting up
new or acquired businesses; (7) risks and uncertainties
involving product and/or technology development; and
(8) occurrences of unexpected plant outages or equipment
failures.
More specifically, we refer you to Steel Dynamics' more detailed
explanation of these and other factors and risks that may
cause such predictive statements to turn out differently, as set
forth in our most recent Annual Report on Form 10-K under the
headings Special Note Regarding Forward-Looking Statements
and Risk Factors, in our quarterly reports on Form 10-Q
or in other reports which we from time to time file with the
Securities and Exchange Commission. These are available publicly on
the SEC website, www.sec.gov, and on the Steel Dynamics website,
www.steeldynamics.com.
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
(in thousands,
except per share data)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
Three Months
Ended
|
|
June
30,
|
|
June
30,
|
|
March
31,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
$
|
2,023,902
|
$
|
2,005,007
|
$
|
3,765,203
|
$
|
4,052,442
|
$
|
1,741,301
|
Costs of goods
sold
|
|
1,643,519
|
|
1,833,264
|
|
3,148,784
|
|
3,693,657
|
|
1,505,265
|
Gross
profit
|
|
380,383
|
|
171,743
|
|
616,419
|
|
358,785
|
|
236,036
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
96,853
|
|
82,660
|
|
184,383
|
|
159,010
|
|
87,530
|
Profit
sharing
|
|
20,176
|
|
5,031
|
|
29,467
|
|
9,629
|
|
9,291
|
Amortization of
intangible assets
|
|
7,232
|
|
6,493
|
|
14,482
|
|
12,816
|
|
7,250
|
Operating
income
|
|
256,122
|
|
77,559
|
|
388,087
|
|
177,330
|
|
131,965
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
36,646
|
|
37,163
|
|
73,689
|
|
80,250
|
|
37,043
|
Other expense
(income), net
|
|
(1,818)
|
|
(1,212)
|
|
(3,610)
|
|
14,980
|
|
(1,792)
|
Income
before income taxes
|
|
221,294
|
|
41,608
|
|
318,008
|
|
82,100
|
|
96,714
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
80,851
|
|
16,283
|
|
116,247
|
|
29,821
|
|
35,396
|
Net
income
|
|
140,443
|
|
25,325
|
|
201,761
|
|
52,279
|
|
61,318
|
Net loss attributable
to noncontrolling interests
|
|
1,526
|
|
6,225
|
|
2,945
|
|
10,032
|
|
1,419
|
|
Net income
attributable to Steel Dynamics, Inc.
|
$
|
141,969
|
$
|
31,550
|
$
|
204,706
|
$
|
62,311
|
$
|
62,737
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share attributable to
Steel Dynamics, Inc. stockholders
|
$
|
0.58
|
$
|
0.13
|
$
|
0.84
|
$
|
0.26
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
243,655
|
|
241,900
|
|
243,429
|
|
241,718
|
|
243,202
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share attributable to
Steel Dynamics, Inc.
stockholders,
including the effect of assumed
conversions when dilutive
|
$
|
0.58
|
$
|
0.13
|
$
|
0.84
|
$
|
0.26
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and
equivalents outstanding
|
|
245,392
|
|
243,491
|
|
245,000
|
|
243,179
|
|
244,608
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
$
|
0.1400
|
$
|
0.1375
|
$
|
0.2800
|
$
|
0.2750
|
$
|
0.1400
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
thousands)
|
|
|
|
June
30,
2016
|
|
December
31,
|
|
|
(unaudited)
|
|
2015
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$
|
1,052,666
|
|
$
|
727,032
|
|
Accounts
receivable, net
|
|
|
794,003
|
|
|
613,605
|
|
Inventories
|
|
|
1,175,716
|
|
|
1,149,390
|
|
Other
current
assets
|
|
|
28,072
|
|
|
47,914
|
|
Total current
assets
|
|
|
3,050,457
|
|
|
2,537,941
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
|
2,885,844
|
|
|
2,951,210
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
|
19,555
|
|
|
19,565
|
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
|
265,476
|
|
|
278,960
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
394,275
|
|
|
397,470
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
|
14,069
|
|
|
16,936
|
|
Total
assets
|
|
$
|
6,629,676
|
|
$
|
6,202,082
|
|
|
|
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
461,267
|
|
$
|
283,355
|
|
Income
taxes payable
|
|
|
43,367
|
|
|
2,023
|
|
Accrued
expenses
|
|
|
256,543
|
|
|
233,232
|
|
Current maturities of long-term debt
|
|
|
18,047
|
|
|
16,680
|
|
Total current liabilities
|
|
|
779,224
|
|
|
535,290
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
2,573,186
|
|
|
2,577,976
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
|
433,116
|
|
|
400,770
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
19,544
|
|
|
16,595
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
|
126,340
|
|
|
126,340
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Common
stock
|
|
|
639
|
|
|
638
|
|
Treasury
stock, at cost
|
|
|
(392,050)
|
|
|
(396,455)
|
|
Additional
paid-in capital
|
|
|
1,125,519
|
|
|
1,110,253
|
|
Retained
earnings
|
|
|
2,101,729
|
|
|
1,965,291
|
|
Total Steel Dynamics, Inc. equity
|
|
|
2,835,837
|
|
|
2,679,727
|
|
Noncontrolling interests
|
|
|
(137,571)
|
|
|
(134,616)
|
|
Total equity
|
|
|
2,698,266
|
|
|
2,545,111
|
|
Total liabilities and
equity
|
|
$
|
6,629,676
|
|
$
|
6,202,082
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
(in
thousands)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
Net
income
|
$
|
140,443
|
$
|
25,325
|
$
|
201,761
|
$
|
52,279
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
74,795
|
|
74,273
|
|
148,780
|
|
147,095
|
Equity-based compensation
|
|
7,236
|
|
6,357
|
|
15,641
|
|
14,900
|
Deferred income
taxes
|
|
18,314
|
|
16,367
|
|
35,401
|
|
33,084
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
(103,598)
|
|
(47,149)
|
|
(179,194)
|
|
85,935
|
Inventories
|
|
(108,893)
|
|
161,174
|
|
(26,326)
|
|
326,173
|
Accounts
payable
|
|
53,732
|
|
62,735
|
|
166,391
|
|
(64,318)
|
Income taxes receivable/payable
|
|
34,388
|
|
(6,844)
|
|
48,381
|
|
9,421
|
Other assets and
liabilities
|
|
41,555
|
|
16,974
|
|
36,036
|
|
(60,650)
|
Net cash provided by operating
activities
|
|
157,972
|
|
309,212
|
|
446,871
|
|
543,919
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
Purchase
of property, plant and equipment
|
|
(35,686)
|
|
(22,821)
|
|
(63,394)
|
|
(56,172)
|
Other
investing activities
|
|
1,206
|
|
806
|
|
4,260
|
|
2,469
|
Net cash used in investing activities
|
|
(34,480)
|
|
(22,015)
|
|
(59,134)
|
|
(53,703)
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
Issuance
of current and long-term
debt
|
|
63,655
|
|
60,941
|
|
84,107
|
|
111,034
|
Repayment
of current and long-term
debt
|
|
(81,022)
|
|
(60,557)
|
|
(85,254)
|
|
(488,008)
|
Exercise
of stock options proceeds, including related tax effect
|
|
3,683
|
|
5,206
|
|
6,575
|
|
6,959
|
Distributions to noncontrolling investors, net
|
|
(2)
|
|
(1,135)
|
|
(10)
|
|
(1,164)
|
Dividends
paid
|
|
(34,090)
|
|
(33,233)
|
|
(67,515)
|
|
(60,999)
|
Debt
issuance
costs
|
|
(1)
|
|
-
|
|
(6)
|
|
-
|
Net cash used in financing
activities
|
|
(47,777)
|
|
(28,778)
|
|
(62,103)
|
|
(432,178)
|
|
|
|
|
|
|
|
|
|
Increase
in cash and equivalents
|
|
75,715
|
|
258,419
|
|
325,634
|
|
58,038
|
Cash and
equivalents at beginning of period
|
|
976,951
|
|
160,982
|
|
727,032
|
|
361,363
|
|
|
|
|
|
|
|
|
|
Cash and
equivalents at end of period
|
$
|
1,052,666
|
$
|
419,401
|
$
|
1,052,666
|
$
|
419,401
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
Cash paid
for interest
|
$
|
45,094
|
$
|
48,550
|
$
|
71,380
|
$
|
88,644
|
Cash paid
(received) for federal and state income taxes, net
|
$
|
27,565
|
$
|
7,046
|
$
|
28,264
|
$
|
(11,493)
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-second-quarter-2016-results-300300238.html
SOURCE Steel Dynamics, Inc.