(November 2, 2023) – Algoma Steel Group Inc. (NASDAQ: ASTL;
TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer
of hot and cold rolled steel sheet and plate products, today
announced results for its fiscal second quarter ended September 30,
2023.
Unless otherwise specified, all amounts are in
Canadian dollars.
Business Highlights and Fiscal 2024 to Fiscal 2023
Second Quarter Comparisons
- Consolidated revenue of $732.6
million, compared to $599.2 million in the prior-year quarter.
- Consolidated income from operations
of $36.8 million, compared to $5.6 million in the prior-year
quarter.
- Net income of $31.1 million,
compared to $87.2 million in the prior-year quarter.
- Adjusted EBITDA of $81 million and
Adjusted EBITDA margin of 11.1%, compared to $82.7 million and
13.8% in the prior-year quarter (See “Non-IFRS Measures”
below).
- Cash flows generated from operations
of $57.2 million, compared to cash flows used in operations of
$66.1 million in the prior-year quarter.
- Shipments of 548,998 tons, compared
to 435,202 tons in the prior-year quarter.
- Paid quarterly dividend of
US$0.05/share.
Michael Garcia, the Company’s Chief Executive
Officer, commented, “We delivered results in the fiscal second
quarter that were in line with our previously disclosed outlook.
Our results were impacted by significant declines in steel prices
leading up to the now resolved labour stoppages at auto
manufacturers in the United States. While we do expect the impact
strikes had on the price environment, along with lower anticipated
production due to our usual planned maintenance ahead of winter to
have a material downward impact on Q3 F2024 results, index prices
have risen and forward curves have rebounded sharply on recent
price increase announcements and news of tentative agreements
between the UAW and automakers. With the strikes behind us, we
expect further recovery in steel demand and pricing.”
Mr. Garcia continued, "During the last quarter,
we initiated the commissioning phase of our inline heavy gauge
shear, a critical component of our Plate Mill modernization
project. This marks a significant step towards achieving increased
production by the end of the current calendar year. We also made
significant progress in our transformative electric arc furnace, or
EAF project, including achieving two important milestones in
securing the necessary power supply for our EAFs. First, Ontario’s
Independent Electricity System Operator provided further positive
indication on connecting our EAFs to the grid. This means we will
have access to the power required to operate the EAFs at our
current run rate annual business plan range of 2.2 - 2.4 million
shippable tons without relying on hot metal. Additionally, the
Ontario Government issued an Order in Counsel to accelerate
regional power infrastructure upgrades, which provides further
comfort that the necessary infrastructure will be in place to meet
the long-term power requirements of our EAF project, allowing for
increased future EAF production capacity.”
Mr. Garcia then shared financial insights on the
EAF project, “As of September 30, 2023, we have invested a total of
$455.7 million in the development of the EAF project, which
represents approximately 54% of the anticipated project cost.
Importantly, we have already secured contracts for approximately
80% of the forecasted total project expenses, with approximately
95% of these contracts being fixed price agreements. We anticipate
finalizing contracts for the remaining forecast project expenses by
end of the fiscal year.”
He elaborated on the funding strategy, saying,
"We expect that funding for the project's completion will be
sourced from a combination of our existing cash reserves, available
funds under our federal Strategic Innovation Fund (SIF) loan,
utilization of excess working capital, and anticipated cash flows
from our operations. Our strong balance sheet provides stability
throughout market cycles as we progress towards the commissioning
of the EAFs in late 2024.”
Second Quarter Fiscal 2024 Financial
Results
Second quarter revenue totaled $732.6 million,
compared to $599.2 million in the prior year quarter. As compared
with the prior year quarter, steel revenue was $665.8 million,
compared to $551.5 million, and revenue per ton of steel sold was
$1,334, compared to $1,377.
Income from operations was $36.8 million,
compared to $5.6 million in the prior-year quarter. The year over
year increase was primarily due to improved steel shipment volumes
and the absence of impacts in the year ago quarter of pension and
post-employment benefit expenses associated with ratifying
collective bargaining agreements, which more than offset lower
realized steel pricing.
Net income in the second quarter was $31.1
million, compared to net income of $87.2 million in the prior-year
quarter.
Adjusted EBITDA in the second quarter was $81.0
million, compared with $82.7 million for the prior-year quarter.
This resulted in an Adjusted EBITDA margin of 11.1%. Average
realized price of steel net of freight and non-steel revenue was
$1,213 per ton, compared to $1,267 per ton in the prior-year
quarter. Cost per ton of steel products sold was $1,089, compared
to $1,199 in the prior-year quarter. Shipments for the second
quarter increased by 26.1% to 548,998 tons, compared to 435,202
tons in the prior-year quarter. See “Non-IFRS Measures” below for
an explanation of Adjusted EBITDA and a reconciliation of net
income (loss) to Adjusted EBITDA.
Electric Arc Furnace
The Company has made substantial progress on the
construction of two new state-of-the-art electric arc furnaces
(“EAF”) to replace its existing blast furnace and basic oxygen
steelmaking operations. The project timing and budget remain
consistent with the outlook provided in the fiscal fourth quarter
2023 earnings release. As of September 30, 2023, the cumulative
investment was approximately $455.7 million of the total projected
cost of $825 million to $875 million. Of the total project
expenditure to date, only $33 million is tied to time and material
contracts, while the balance is fixed price in nature. Furthermore,
expected chip shortages that have previously impacted the project
timeline have eased, and a late calendar 2024 commissioning remains
on track. Following the transformation to EAF steelmaking, Algoma’s
facility is expected to reach an annual raw steel production
capacity of approximately 3.7 million tons, matching its downstream
finishing capacity, and to generate an approximate 70% reduction in
the Company’s annual carbon emissions.
Quarterly Dividend
The Board has declared a regular quarterly
dividend in the amount of US$0.05 on each common share outstanding,
payable on December 29, 2023, to holders of record of common shares
of the Corporation as of the close of business on November 30,
2023. This dividend is designated as an “eligible dividend” for
Canadian income tax purposes.
Conference Call and Webcast
Details
A webcast and conference call will be held on
Friday, November 3, 2023 at 10:00 a.m. EDT to review the Company’s
fiscal second quarter results, discuss recent events, and conduct a
question-and-answer session.
The live webcast and archived replay of the
conference call can be accessed on the Investors section of the
Company’s website at www.algoma.com. For those unable to access the
webcast, the conference call will be accessible domestically or
internationally by dialing 877-425-9470 or 201-389-0878,
respectively. Upon dialing in, please request to join the Algoma
Steel Second Quarter Conference Call. To access the replay of the
call, dial 844-512-2921 (domestic) or 412-317-6671 (international)
with passcode 13741963.
Consolidated Financial Statements and
Management's Discussion and Analysis
The Company's unaudited interim consolidated
financial statements for the three and six months ended September
30, 2023, and Management’s Discussion & Analysis thereon are
available under the Company’s profile on the U.S. Securities and
Exchange Commission’s (“SEC”) EDGAR website at www.sec.gov and
under the Company’s profile on SEDAR+ at www.sedarplus.ca.
Cautionary Statement Regarding
Forward-Looking Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”), including statements regarding
trends in the pricing of steel and other key inputs in the
steelmaking process, impacts of labour stoppages, Algoma’s
expectation to continue to pay a quarterly dividend, Algoma’s
transition to EAF steelmaking, including the progress, costs and
timing of completion of the Company’s EAF project, Algoma’s future
as a leading producer of green steel, Algoma’s modernization of its
plate mill facilities and the status and timing thereof, the
connection of the EAFs to the Ontario power grid, transformation
journey, ability to deliver greater and long-term value, ability to
offer North America a secure steel supply and a sustainable future,
and investment in its people, and processes, statements regarding
the Company’s intended use of cash on hand, cash from operations
and proceeds from the Company’s credit facilities, and the
Company’s strategy, plans or future financial or operating
performance. These forward-looking statements generally are
identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “design,” “pipeline,” “may,” “should,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions. Forward-looking statements are
predictions, projections and other statements about future events
that are based on current expectations and assumptions. Many
factors could cause actual future events to differ materially from
the forward-looking statements in this document. Readers should
also consider the other risks and uncertainties set forth in the
section entitled “Risk Factors” and “Cautionary Note Regarding
Forward-Looking Information” in Algoma’s Annual Information Form,
filed by Algoma with applicable Canadian securities regulatory
authorities (available under the company’s SEDAR+ profile at
www.sedarplus.ca) and with the SEC, as part of Algoma’s Annual
Report on Form 40-F (available at www.sec.gov), as well as in
Algoma’s current reports with the Canadian securities regulatory
authorities and SEC. Forward-looking statements speak only as of
the date they are made. Readers are cautioned not to put undue
reliance on forward-looking statements, and Algoma assumes no
obligation and does not intend to update or revise these
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Non-IFRS Financial
Measures
To supplement our financial statements, which
are prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board
(“IFRS”), we use certain non-IFRS measures to evaluate the
performance of Algoma. These terms do not have any standardized
meaning prescribed within 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 a further understanding
of our financial performance from management’s perspective.
Accordingly, they should not be considered in isolation nor as a
substitute for analysis of our financial information reported under
IFRS.
Adjusted EBITDA, as we define it, refers to net
income (loss) before amortization of property, plant, equipment and
amortization of intangible assets, finance costs, interest on
pension and other post-employment benefit obligations, income
taxes, foreign exchange loss (gain), finance income, carbon tax,
changes in fair value of warrant, earnout and share-based
compensation liabilities, transaction costs, earnout and
share-based compensation liabilities, transaction costs, listing
expense, past service costs – pension, past service costs
–post-employment benefits and share-based compensation related to
Omnibus Long Term Incentive Plan. Adjusted EBITDA margin is
calculated by dividing Adjusted EBITDA by revenue for the
corresponding period. Adjusted EBITDA is not intended to represent
cash flow from operations, as defined by IFRS, and should not be
considered as alternatives to net profit (loss) from operations, or
any other measure of performance prescribed by IFRS. Adjusted
EBITDA, as we define and use it, may not be comparable to Adjusted
EBITDA as defined and used by other companies. We consider Adjusted
EBITDA to be a meaningful measure to assess our operating
performance in addition to IFRS measures. It is included because we
believe it can be useful in measuring our operating performance and
our ability to expand our business and provide management and
investors with additional information for comparison of our
operating results across different time periods and to the
operating results of other companies. Adjusted EBITDA is also used
by analysts and our lenders as a measure of our financial
performance. In addition, we consider Adjusted EBITDA margin to be
a useful measure of our operating performance and profitability
across different time periods that enhance the comparability of our
results. However, these measures have limitations as analytical
tools and should not be considered in isolation from, or as
alternatives to, net income, cash flow from operations or other
data prepared in accordance with IFRS. Because of these
limitations, such measures should not be considered as measures of
discretionary cash available to invest in business growth or to
reduce indebtedness. We compensate for these limitations by relying
primarily on our IFRS results using such measures only as
supplements to such results. See the financial tables below for a
reconciliation of net income (loss) to Adjusted EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. Driven by a purpose to build
better lives and a greener future, Algoma is positioned to deliver
responsive, customer-driven product solutions to applications in
the automotive, construction, energy, defense, and manufacturing
sectors. Algoma is a key supplier of steel products to customers in
North America and is the only producer of discrete plate products
in Canada. Its state-of-the-art Direct Strip Production Complex
(“DSPC”) is one of the lowest-cost producers of hot rolled sheet
steel (HRC) in North America.
Algoma is on a transformation journey,
modernizing its plate mill and adopting electric arc technology
that builds on the strong principles of recycling and environmental
stewardship to significantly lower carbon emissions. Today Algoma
is investing in its people and processes, working safely, as a team
to become one of North America's leading producers of green
steel.
As a founding industry in their community,
Algoma is drawing on the best of its rich steelmaking tradition to
deliver greater value, offering North America the comfort of a
secure steel supply and a sustainable future as your partner in
steel.
|
|
Algoma Steel Group Inc.Condensed Interim Consolidated
Statements of Financial
Position(Unaudited) |
|
As at, |
September 30, 2023 |
March 31, 2023 |
|
expressed in millions of Canadian dollars |
|
|
|
Assets |
|
|
|
Current |
|
|
|
Cash |
$ |
213.6 |
|
$ |
247.4 |
|
|
Restricted cash |
|
3.9 |
|
|
3.9 |
|
|
Taxes receivable |
|
12.3 |
|
|
- |
|
|
Accounts receivable, net |
|
303.6 |
|
|
291.2 |
|
|
Inventories |
|
822.7 |
|
|
722.7 |
|
|
Prepaid expenses and deposits |
|
64.9 |
|
|
94.4 |
|
|
Other assets |
|
6.6 |
|
|
6.7 |
|
|
Total current assets |
$ |
1,427.6 |
|
$ |
1,366.3 |
|
|
Non-current |
|
|
|
Property, plant and equipment, net |
$ |
1,276.7 |
|
$ |
1,081.3 |
|
|
Intangible assets, net |
|
0.9 |
|
|
0.9 |
|
|
Other assets |
|
7.9 |
|
|
7.1 |
|
|
Total non-current assets |
$ |
1,285.5 |
|
$ |
1,089.3 |
|
|
Total assets |
$ |
2,713.1 |
|
$ |
2,455.6 |
|
|
Liabilities and Shareholders' Equity |
|
|
|
Current |
|
|
|
Bank indebtedness |
$ |
0.4 |
|
$ |
1.9 |
|
|
Accounts payable and accrued liabilities |
|
283.4 |
|
|
204.6 |
|
|
Taxes payable and accrued taxes |
|
60.2 |
|
|
14.4 |
|
|
Current portion of other long-term liabilities |
|
0.5 |
|
|
0.4 |
|
|
Current portion of governmental loans |
|
11.9 |
|
|
10.0 |
|
|
Current portion of environmental liabilities |
|
2.2 |
|
|
4.5 |
|
|
Warrant liability |
|
39.9 |
|
|
57.3 |
|
|
Earnout liability |
|
14.3 |
|
|
16.8 |
|
|
Share-based payment compensation liability |
|
28.5 |
|
|
33.5 |
|
|
Total current liabilities |
$ |
441.3 |
|
$ |
343.4 |
|
|
Non-current |
|
|
|
Long-term governmental loans |
$ |
122.8 |
|
$ |
110.4 |
|
|
Accrued pension liability |
|
204.0 |
|
|
184.0 |
|
|
Accrued other post-employment benefit obligation |
|
210.5 |
|
|
222.9 |
|
|
Other long-term liabilities |
|
4.0 |
|
|
3.7 |
|
|
Environmental liabilities |
|
33.1 |
|
|
32.3 |
|
|
Deferred income tax liabilities |
|
85.7 |
|
|
96.7 |
|
|
Total non-current liabilities |
$ |
660.1 |
|
$ |
650.0 |
|
|
Total liabilities |
$ |
1,101.4 |
|
$ |
993.4 |
|
|
Shareholders' equity |
|
|
|
Capital stock |
$ |
958.8 |
|
$ |
958.4 |
|
|
Accumulated other comprehensive income |
|
312.6 |
|
|
313.6 |
|
|
Retained earnings |
|
359.4 |
|
|
211.6 |
|
|
Contributed deficit |
|
(19.1 |
) |
|
(21.4 |
) |
|
Total shareholders' equity |
$ |
1,611.7 |
|
$ |
1,462.2 |
|
|
Total liabilities and shareholders' equity |
$ |
2,713.1 |
|
$ |
2,455.6 |
|
|
|
|
|
|
Algoma Steel
Group Inc.Condensed Interim Consolidated Statements of Net
Income(Unaudited) |
|
|
Three months ended September 30, |
|
Six months ended September 30, |
|
|
2023 |
2022 |
|
2023 |
2022 |
|
expressed in millions of Canadian dollars, except for per share
amounts |
|
|
|
|
|
|
Revenue |
$ |
732.6 |
|
$ |
599.2 |
|
|
$ |
1,559.8 |
|
$ |
1,533.3 |
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
Cost of sales |
$ |
664.8 |
|
$ |
569.4 |
|
|
$ |
1,304.3 |
|
$ |
1,146.2 |
|
|
Administrative and selling expenses |
|
31.0 |
|
|
24.2 |
|
|
|
54.4 |
|
|
52.6 |
|
|
Income from operations |
$ |
36.8 |
|
$ |
5.6 |
|
|
$ |
201.1 |
|
$ |
334.5 |
|
|
|
|
|
|
|
|
|
Other (income) and expenses |
|
|
|
|
|
|
Finance income |
$ |
(3.1 |
) |
$ |
(4.6 |
) |
|
$ |
(6.4 |
) |
$ |
(6.5 |
) |
|
Finance costs |
|
5.4 |
|
|
4.3 |
|
|
|
10.5 |
|
|
9.0 |
|
|
Interest on pension and other post-employment benefit
obligations |
|
4.8 |
|
|
4.0 |
|
|
|
9.6 |
|
|
7.4 |
|
|
Foreign exchange gain |
|
(11.6 |
) |
|
(40.1 |
) |
|
|
(0.6 |
) |
|
(51.8 |
) |
|
Change in fair value of warrant liability |
|
0.3 |
|
|
(35.1 |
) |
|
|
(17.2 |
) |
|
(73.5 |
) |
|
Change in fair value of earnout liability |
|
(0.7 |
) |
|
(5.0 |
) |
|
|
(2.7 |
) |
|
(9.2 |
) |
|
Change in fair value of share-based compensation
liability |
|
(1.3 |
) |
|
(10.0 |
) |
|
|
(5.3 |
) |
|
(19.4 |
) |
|
|
$ |
(6.2 |
) |
$ |
(86.5 |
) |
|
$ |
(12.1 |
) |
$ |
(144.0 |
) |
|
Income before income taxes |
$ |
43.0 |
|
$ |
92.1 |
|
|
$ |
213.2 |
|
$ |
478.5 |
|
|
Income tax expense |
|
11.9 |
|
|
4.9 |
|
|
|
51.2 |
|
|
89.8 |
|
|
Net
income |
$ |
31.1 |
|
$ |
87.2 |
|
|
$ |
162.0 |
|
$ |
388.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
income per common share |
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
$ |
0.72 |
|
|
$ |
1.49 |
|
$ |
2.84 |
|
|
Diluted |
$ |
0.24 |
|
$ |
0.36 |
|
|
$ |
1.09 |
|
$ |
1.95 |
|
|
|
|
|
|
|
|
|
Algoma Steel
Group Inc.Condensed Interim Consolidated Statements of Cash
Flows(Unaudited) |
|
|
Three months ended September 30, |
|
Six months ended September 30, |
|
|
2023 |
2022 |
|
2023 |
2022 |
|
expressed in millions of Canadian dollars |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
Net Income |
$ |
31.1 |
|
$ |
87.2 |
|
|
$ |
162.0 |
|
$ |
388.7 |
|
|
Items not affecting cash: |
|
|
|
|
|
|
Depreciation of property, plant and equipment and intangible
assets |
|
25.3 |
|
|
22.4 |
|
|
|
48.6 |
|
|
45.0 |
|
|
Deferred income tax benefit |
|
(3.9 |
) |
|
(15.5 |
) |
|
|
(10.9 |
) |
|
(16.1 |
) |
|
Pension funding (in excess of) below expense |
|
(0.3 |
) |
|
49.1 |
|
|
|
0.9 |
|
|
48.8 |
|
|
Post-employment benefit funding (in excess of) below expense |
|
(1.5 |
) |
|
1.8 |
|
|
|
(3.4 |
) |
|
(0.3 |
) |
|
Unrealized foreign exchange gain on: |
|
|
|
|
|
|
accrued pension liability |
|
(4.3 |
) |
|
(12.8 |
) |
|
|
(0.2 |
) |
|
(16.8 |
) |
|
post-employment benefit obligations |
|
(4.9 |
) |
|
(13.2 |
) |
|
|
- |
|
|
(20.5 |
) |
|
Finance costs |
|
5.4 |
|
|
4.3 |
|
|
|
10.5 |
|
|
9.0 |
|
|
Interest on pension and other post-employment benefit
obligations |
|
4.8 |
|
|
4.0 |
|
|
|
9.6 |
|
|
7.4 |
|
|
Accretion of governmental loans and environmental liabilities |
|
3.8 |
|
|
3.2 |
|
|
|
7.4 |
|
|
6.3 |
|
|
Unrealized foreign exchange gain on government loan facilities |
|
(3.1 |
) |
|
(6.4 |
) |
|
|
(0.5 |
) |
|
(9.3 |
) |
|
Increase (decrease) in fair value of warrant liability |
|
0.3 |
|
|
(35.1 |
) |
|
|
(17.2 |
) |
|
(73.5 |
) |
|
Decrease in fair value of earnout liability |
|
(0.7 |
) |
|
(5.0 |
) |
|
|
(2.7 |
) |
|
(9.2 |
) |
|
Decrease in fair value of share-based compensation liability |
|
(1.3 |
) |
|
(10.0 |
) |
|
|
(5.3 |
) |
|
(19.4 |
) |
|
Other |
|
2.1 |
|
|
(2.0 |
) |
|
|
3.6 |
|
|
(3.5 |
) |
|
|
$ |
52.8 |
|
$ |
72.0 |
|
|
$ |
202.4 |
|
$ |
336.6 |
|
|
Net change in non-cash operating working capital |
|
6.6 |
|
|
(133.3 |
) |
|
|
21.5 |
|
|
(121.1 |
) |
|
Share-based payment compensation and earnout units
settled |
|
- |
|
|
(4.6 |
) |
|
|
- |
|
|
(4.6 |
) |
|
Environmental liabilities paid |
|
(2.2 |
) |
|
(0.2 |
) |
|
|
(2.8 |
) |
|
(0.4 |
) |
|
Cash
generated by (used in) operating activities |
$ |
57.2 |
|
($ |
66.1 |
) |
|
$ |
221.1 |
|
$ |
210.5 |
|
|
Investing activities |
|
|
|
|
|
|
Acquisition of property, plant and equipment |
$ |
(154.6 |
) |
$ |
(92.4 |
) |
|
$ |
(273.2 |
) |
$ |
(172.5 |
) |
|
Cash
used in investing activities |
$ |
(154.6 |
) |
$ |
(92.4 |
) |
|
$ |
(273.2 |
) |
$ |
(172.5 |
) |
|
Financing activities |
|
|
|
|
|
|
Bank indebtedness (repaid) advanced, net |
$ |
(1.0 |
) |
$ |
0.1 |
|
|
$ |
(1.7 |
) |
$ |
0.3 |
|
|
Transaction costs on bank indebtedness |
|
(0.7 |
) |
|
- |
|
|
|
(1.7 |
) |
|
- |
|
|
Governmental loans received |
|
23.8 |
|
|
15.2 |
|
|
|
42.3 |
|
|
15.2 |
|
|
Repayment of governmental loans |
|
(2.5 |
) |
|
(2.5 |
) |
|
|
(5.0 |
) |
|
(5.0 |
) |
|
Interest paid |
|
(0.1 |
) |
|
- |
|
|
|
(0.2 |
) |
|
(0.1 |
) |
|
Dividends paid |
|
(13.9 |
) |
|
(16.6 |
) |
|
|
(13.9 |
) |
|
(16.6 |
) |
|
Common shares repurchased and cancelled |
|
- |
|
|
(543.0 |
) |
|
|
- |
|
|
(546.7 |
) |
|
Other |
|
(0.3 |
) |
|
(0.3 |
) |
|
|
(0.3 |
) |
|
(0.3 |
) |
|
Cash
generated by (used in) financing activities |
$ |
5.3 |
|
($ |
547.1 |
) |
|
$ |
19.5 |
|
$ |
(553.2 |
) |
|
Effect of exchange rate changes on cash |
$ |
5.1 |
|
$ |
33.6 |
|
|
$ |
(1.2 |
) |
$ |
64.8 |
|
|
Cash |
|
|
|
|
|
|
Decrease in cash |
|
(87.0 |
) |
|
(672.0 |
) |
|
|
(33.8 |
) |
|
(450.4 |
) |
|
Opening balance |
|
300.6 |
|
|
1,136.9 |
|
|
|
247.4 |
|
|
915.3 |
|
|
Ending balance |
$ |
213.6 |
|
$ |
464.9 |
|
|
$ |
213.6 |
|
$ |
464.9 |
|
|
|
|
|
|
|
|
|
Algoma Steel
Group Inc.Reconciliation of Net Income to Adjusted EBITDA
|
|
Three months ended September 30, |
|
Six months ended September 30, |
millions of dollars |
2023 |
2022 |
|
2023 |
2022 |
Net income |
$ |
31.1 |
|
$ |
87.2 |
|
|
$ |
162.0 |
|
$ |
388.7 |
|
|
|
|
|
|
|
Depreciation of property, plant and equipment and
amortization of intangible assets |
|
25.3 |
|
|
22.4 |
|
|
|
48.6 |
|
|
45.0 |
|
Finance costs |
|
5.4 |
|
|
4.3 |
|
|
|
10.5 |
|
|
9.0 |
|
Interest on pension and other post-employment benefit
obligations |
|
4.8 |
|
|
4.0 |
|
|
|
9.6 |
|
|
7.4 |
|
Income
taxes |
|
11.9 |
|
|
4.9 |
|
|
|
51.2 |
|
|
89.8 |
|
Foreign exchange gain |
|
(11.6 |
) |
|
(40.1 |
) |
|
|
(0.6 |
) |
|
(51.8 |
) |
Finance income |
|
(3.1 |
) |
|
(4.6 |
) |
|
|
(6.4 |
) |
|
(6.5 |
) |
Inventory
write-downs (depreciation on property, plant and equipment in
inventory) |
|
4.3 |
|
|
1.5 |
|
|
|
4.7 |
|
|
1.8 |
|
Carbon
tax |
|
12.2 |
|
|
0.1 |
|
|
|
14.7 |
|
|
3.1 |
|
Iincrease (decrease) in fair value of warrant liability |
|
0.3 |
|
|
(35.1 |
) |
|
|
(17.2 |
) |
|
(73.5 |
) |
Decrease in fair value of earnout liability |
|
(0.7 |
) |
|
(5.0 |
) |
|
|
(2.7 |
) |
|
(9.2 |
) |
Decrease in fair value of share-based payment compensation
liability |
|
(1.3 |
) |
|
(10.0 |
) |
|
|
(5.3 |
) |
|
(19.4 |
) |
Share-based compensation |
|
2.4 |
|
|
(0.2 |
) |
|
|
3.0 |
|
|
2.7 |
|
Past
service costs - pension benefits |
|
- |
|
|
49.5 |
|
|
|
- |
|
|
49.5 |
|
Past
service costs - post-employment benefits |
|
- |
|
|
3.8 |
|
|
|
- |
|
|
3.8 |
|
Adjusted EBITDA (i) |
$ |
81.0 |
|
$ |
82.7 |
|
|
$ |
272.1 |
|
$ |
440.4 |
|
Net
income Margin |
|
4.2 |
% |
|
14.6 |
% |
|
|
10.4 |
% |
|
25.3 |
% |
Net
income / ton |
$ |
56.6 |
|
$ |
200.4 |
|
|
$ |
144.8 |
|
$ |
399.6 |
|
Adjusted EBITDA Margin (ii) |
|
11.1 |
% |
|
13.8 |
% |
|
|
17.4 |
% |
|
28.7 |
% |
Adjusted EBITDA / ton |
$ |
147.5 |
|
$ |
189.9 |
|
|
$ |
243.3 |
|
$ |
452.8 |
|
|
|
|
|
|
|
(i) See "Non-IFRS
Financial Measures" in this Press Release for information regarding
the limitations of using Adjusted EBITDA. |
(ii) Adjusted EBITDA
Margin is Adjusted EBITDA as a percentage of
revenue. |
|
For more information, please contact:
Michael MoracaTreasurer & Investor
Relations OfficerAlgoma Steel Group Inc.Phone:
705.945.3300E-mail: IR@algoma.com
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