FORT WAYNE, Ind., Jan. 28, 2015 /PRNewswire/ --
- Fourth Quarter 2014 Records
- Steel shipments of 2.3 million tons
- Steel fabrication operating income of $22 million
- Full-Year 2014 Records
- Consolidated revenues of $8.8
billion
- Liquidity of $1.6 billion
- Steel shipments of 7.4 million tons, with individual records
from Butler Flat Roll, Columbus Flat Roll, Engineered Bar Products,
and Structural and Rail Divisions
- Steel fabrication shipments of 481,000 tons
- Steel fabrication operating income of $52 million
Steel Dynamics, Inc. (NASDAQ/GS: STLD) today announced 2014
fourth quarter and full-year results. Excluding non-cash
fixed asset impairment charges related to the company's Minnesota
Operations of $0.55 per diluted
share, and post-acquisition purchase accounting and lower of cost
or market inventory adjustments of $0.04 per diluted share, the company's adjusted
fourth quarter 2014 net income was $97
million, or $0.40 per diluted
share, on net sales of $2.5 billion.
Including these charges, the company reported a fourth quarter 2014
net loss of $45 million, or
$0.19 per diluted share.
The operating performance of the company's Minnesota operations was steady in the fourth
quarter 2014, indicating a consistency of production capability and
the ability to utilize lower-cost raw materials. Based on the
associated information, as indicated in the company's December 17, 2014 guidance, the company assessed
the carrying value of the operation's fixed assets during the
fourth quarter, and determined that the future estimated cash flows
did not support the values in place. Therefore, the company
recorded a pre-tax, non-cash asset impairment charge of
$260 million, and based on the
company's joint venture ownership percentage, reduced consolidated
results by $213 million.
Comparatively, prior year fourth quarter net income was
$55 million, or $0.24 per diluted share, on net sales of
$1.9 billion, and sequential third
quarter 2014 net income was $91
million, or $0.38 per diluted
share, which included the reduction of approximately $0.09 per diluted share related to acquisition
costs, financing fees, and the effect of purchase accounting
adjustments for the Columbus acquisition that occurred mid-September 2014.
"We continue to perform at the top of our industry, both
financially and operationally," said Chief Executive Officer,
Mark Millett. "We achieved record
annual revenues, and excluding the previously mentioned charges,
our annual 2014 consolidated net income improved 70 percent and
operating income increased 58 percent. We also achieved
record 2014 shipments in steel, even before recording the results
from our recent Columbus steel mill acquisition. The Butler
Flat Roll, Columbus Flat Roll, Structural and Rail and Engineered
Bar Products Divisions all attained individual annual shipping
records. However, as expected, the fourth quarter 2014 steel
shipments declined sequentially due to typical seasonal declines
and the continuation of elevated import levels. While
underlying steel demand from automotive, manufacturing and
construction markets remained sound, overall average pricing
weakened to a greater degree than raw material prices.
"Of particular note, our fabrication operations achieved record
annual shipments with increased volumes of 31 percent, reaching
481,000 tons. Annual operating income improved to $52 million, well over seven times 2013
results. The team's performance was top-of-class. They
leveraged the improving nonresidential construction market,
achieving improved metal spread and meaningfully higher volume,
driven by overall market growth and increased market share.
Despite a seasonal fourth quarter shipment decline, pricing
improved, margins expanded and operating income increased over
traditionally stronger third quarter results. This is
evidence of the continued recovery in construction demand," stated
Millett.
For the company's metals recycling operations, annual 2014
operating income decreased 31 percent to $44
million, as the decrease in ferrous metal spread more than
offset the increase in overall shipments. The ongoing
overcapacity of recycled shredding locations throughout
the United States, particularly in
the Southeast, continues to constrain profitability and remains a
broad industry challenge.
Fourth Quarter Review
Seasonal trends and elevated steel imports negatively impacted
shipments across the company's operating platforms. Excluding
Columbus purchase accounting adjustments, operating income for the
company's steel operations increased 4 percent to $224 million, based on increased shipments.
Increased flat roll shipments from both Butler and Columbus, more
than offset the declines in the company's long product divisions.
Steel metal spread contracted in the fourth quarter primarily
as a function of decreased selling values from additional import
pressure and seasonally lower demand. The average product
selling price for the company's steel operations decreased
$34 to $806 per ton. The average ferrous
scrap cost per ton melted decreased $10 to $346 per
ton.
Fourth quarter operating income attributable to the company's
sheet products increased 29 percent when compared to the sequential
quarter, as a result of the Columbus acquisition. Operating income
from long products decreased 21 percent, as structural steel and
bar pricing declined in the quarter. The production utilization
rate for the company's steel operations was 84 percent in the
fourth quarter 2014, compared to 90 percent in the prior
quarter.
Fourth quarter operating income from the company's metals
recycling operations decreased to $3
million, compared to $13
million for the third quarter 2014. Overall shipments
and ferrous metal spread decreased, as a result of weaker scrap
exports, which increased domestic scrap supply.
The company's fabrication operations continued its strong
performance. Operating income increased 11 percent, to
$22 million, as a result of overall
market growth and increased market share. Higher average
selling values more than offset a five percent seasonal decrease in
sequential shipments. Order inquiries and bookings for our
fabrication operations remain strong, confirming the positive trend
in the nonresidential construction market.
During the fourth quarter, the company amended, restated and
expanded its senior secured revolving credit facility and entered
into a new term loan facility. The company expanded its
revolving credit facility from $1.1
billion to $1.2 billion and
renewed it for another five year period, and also entered into a
new five year $250 million term loan
facility. Subject to certain conditions, the company also has
the ability to increase the combined facility size by a minimum of
an additional $750 million. "We
are pleased with this transaction and the continued strong support
from our financial institutions," stated Theresa Wagler, Chief Financial Officer. "The
combination of the new facilities, plus our strong cash flow
generation in the fourth quarter and throughout 2014, has resulted
in record liquidity levels, further enhancing the strength and
flexibility of our capital structure to not only support our
current operations, but to readily promote growth."
Full-Year Review
Annual 2014 net income was $157
million, or $0.67 per diluted
share. Excluding charges related to fixed asset impairment,
purchase accounting, acquisition-related expenses, and lower of
cost or market adjustments, the company had adjusted net income of
$323 million, or $1.35 per diluted share. When compared to
prior year results, annual 2014 shipments and average product
pricing increased across all of the company's operating
platforms. Consolidated net sales increased 19 percent to
$8.8 billion, attaining a new annual
record. On an adjusted basis, excluding the previously
mentioned charges, consolidated 2014 operating income would have
improved 58 percent to $612 million,
primarily as a result of year-over-year improvement in steel
shipments and metal spread. The average annual 2014 selling price
for the company's steel operations increased $34 to $827 per
ton, compared to 2013. The average annual 2014 ferrous cost
per ton melted increased $7 to
$360 per ton, compared to prior
year.
Outlook
"As we enter 2015, we remain optimistic that the broader U.S.
economy will continue to improve," said Millett. "However, we are
facing a challenging first quarter. The instability of global
growth and continued decline in global oil prices weigh on general
sentiment. The combination of high import levels and a
seasonally slow December resulted in higher levels of customer
inventories, and consequently has resulted in decreased selling
values. We believe this overhang can be resolved during the
first quarter of 2015. The U.S. economy continues to
improve, and there continues to be strength in several key
steel-consuming end markets, including automotive, manufacturing
and nonresidential construction. The non-service sector portion of
U.S. GDP will continue to strengthen, and is capable of growing at
a higher rate than overall U.S. GDP, which is a positive for steel
consumption in 2015 and the out years.
"The recent acquisition of the Columbus Flat Roll Division
broadened our geographic reach and accelerated our product
diversification. In addition, our organic growth projects in
SBQ and rail also bring product diversification and growth
opportunities in the coming years. Our focus on our
customers, coupled with our market diversification and low-cost
operating platforms support our ability to maintain our
best-in-class performance. We believe we are poised to capitalize
on meaningful growth opportunities, both near-term and in the
future, that will benefit employees, customers and shareholders,"
concluded Millett.
Summary Fourth Quarter Operating Segment Information
The following tables highlight operating results for each of the
company's primary operating platforms. References to operating
income in the following paragraphs exclude profit-sharing expenses
and amortization pertaining to intangible assets. Dollar
amounts are in thousands, excluding per ton data.
Steel Operations
This segment includes six electric-arc-furnace steel mills and
related steel finishing and processing facilities, with the results
of the Columbus Flat Roll Division included from the date of
acquisition on September 16,
2014. The company's steel operations produce flat roll,
structural, merchant bars, engineered special-bar-quality bars,
rebar, rail, and specialty shapes steels.
|
|
Fourth
Quarter
|
|
Full
Year
|
|
Sequential
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
3Q
2014
|
|
Total
Sales
|
|
$ 1,843,864
|
|
$ 1,222,907
|
|
$ 5,968,904
|
|
$ 4,768,004
|
|
$ 1,564,112
|
|
External
Sales
|
|
1,707,829
|
|
1,146,701
|
|
5,541,743
|
|
4,461,457
|
|
1,451,211
|
|
Operating
Income
|
|
212,267
|
|
155,107
|
|
680,210
|
|
513,227
|
|
202,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
2,329,825
|
|
1,542,289
|
|
7,358,366
|
|
6,119,884
|
|
1,900,043
|
|
External Shipments
(tons)
|
|
2,119,236
|
|
1,423,953
|
|
6,704,714
|
|
5,628,632
|
|
1,728,023
|
|
Production
(tons)
|
|
2,263,540
|
|
1,588,392
|
|
7,376,657
|
|
6,266,507
|
|
1,885,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average External
Sales Price Per Ton
|
|
$
806
|
|
$
805
|
|
$
827
|
|
$
793
|
|
$
840
|
|
Average Ferrous Scrap
Cost Per Ton
|
|
$
346
|
|
$
356
|
|
$
360
|
|
$
353
|
|
$
356
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals Recycling and Ferrous Resources
Operations
This segment includes the company's metals recycling and iron
resources operations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Full
Year
|
|
Sequential
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
3Q
2014
|
|
Metals Recycling
& Ferrous Resources
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
972,759
|
|
$
907,668
|
|
$ 4,091,725
|
|
$ 3,663,486
|
|
$ 1,111,300
|
|
External Sales
|
|
593,582
|
|
572,840
|
|
2,486,969
|
|
2,384,841
|
|
672,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Loss
|
|
(17,547)
|
|
(13,020)
|
|
(30,843)
|
|
(30,835)
|
|
(798)
|
|
Impairment
Charges
|
|
(260,000)
|
|
-
|
|
(260,000)
|
|
-
|
|
-
|
|
|
|
(277,547)
|
|
(13,020)
|
|
(290,843)
|
|
(30,835)
|
|
(798)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized Hedging
Gain (Loss), Net
|
|
635
|
|
(2,626)
|
|
5,327
|
|
(4,943)
|
|
3,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals Recycling
Standalone
|
|
|
|
|
|
|
|
|
|
|
|
Total
Sales
|
|
$
813,478
|
|
$
797,034
|
|
$ 3,539,206
|
|
$ 3,274,866
|
|
$ 953,483
|
|
External
Sales
|
|
525,546
|
|
535,549
|
|
2,226,827
|
|
2,277,550
|
|
597,648
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
2,933
|
|
11,677
|
|
43,901
|
|
63,582
|
|
13,021
|
|
Unrealized Hedging
Gain (Loss), Net
|
|
1,151
|
|
(1,707)
|
|
4,174
|
|
(3,990)
|
|
2,664
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous Shipments
(gross tons)
|
|
1,325,337
|
|
1,356,258
|
|
5,566,238
|
|
5,505,995
|
|
1,453,671
|
|
% Shipments to SDI
Steel Mills
|
|
48%
|
|
47%
|
|
48%
|
|
44%
|
|
46%
|
|
Nonferrous Shipments
(pounds 000's)
|
|
289,124
|
|
254,876
|
|
1,173,771
|
|
1,052,494
|
|
325,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Fabrication Operations
Steel fabrication operations include New Millennium Building
Systems, which fabricates steel joists, trusses, and decking used
in the construction of nonresidential buildings.
|
|
Fourth
Quarter
|
|
Full
Year
|
|
Sequential
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
3Q
2014
|
Total
Sales
|
|
$
191,059
|
|
$
121,853
|
|
$
631,808
|
|
$
439,655
|
|
$ 190,036
|
Operating Income
(Loss)
|
|
21,704
|
|
(122)
|
|
51,894
|
|
7,003
|
|
19,474
|
|
|
|
|
|
|
|
|
|
|
|
Total Shipments
(tons)
|
|
136,917
|
|
101,132
|
|
480,509
|
|
366,676
|
|
143,737
|
Average Sales Price
Per Ton
|
|
$
1,395
|
|
$
1,205
|
|
$
1,315
|
|
$
1,199
|
|
$ 1,322
|
|
|
|
|
|
|
|
|
|
|
|
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 $8.8 billion in 2014, over 7,700 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
eight steel processing facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
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 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 nonresidential 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 SDI's 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, 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.
Conference Call and Webcast
On Thursday, January 29, 2015, at
10:00 a.m. Eastern Time, Steel
Dynamics will host a conference call with investors and analysts to
discuss the company's fourth quarter and full-year 2014 operating
and financial results. We invite you to listen to the live
webcast of the conference call accessible from our website
(http://www.steeldynamics.com), or via telephone (the conference
call number may also be obtained on our website). A
replay of the discussion will be available on our website until
11:59 p.m. Eastern Time on
February 3, 2015. A podcast/MP3
file of the event will also be available and can be downloaded from
our website.
|
Steel Dynamics,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED)
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three
Months
Ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
September
30,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
sales
|
|
$ 2,517,093
|
|
$ 1,864,150
|
|
$ 8,755,952
|
|
$ 7,372,924
|
|
$ 2,339,016
|
|
Costs of goods
sold
|
|
2,225,469
|
|
1,666,154
|
|
7,789,741
|
|
6,653,780
|
|
2,050,504
|
|
Gross
profit
|
|
291,624
|
|
197,996
|
|
966,211
|
|
719,144
|
|
288,512
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
92,469
|
|
74,606
|
|
316,214
|
|
272,777
|
|
80,240
|
|
Profit
sharing
|
|
13,397
|
|
7,873
|
|
42,126
|
|
27,764
|
|
12,865
|
|
Amortization of
intangible assets
|
|
6,918
|
|
7,695
|
|
27,551
|
|
31,770
|
|
6,764
|
|
Impairment
charges
|
|
260,000
|
|
-
|
|
260,000
|
|
308
|
|
-
|
|
Operating income
(loss)
|
|
(81,160)
|
|
107,822
|
|
320,320
|
|
386,525
|
|
188,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
of capitalized interest
|
|
44,740
|
|
30,664
|
|
137,263
|
|
127,728
|
|
31,904
|
|
Other expense
(income), net
|
|
(1,433)
|
|
111
|
|
18,254
|
|
(4,033)
|
|
22,072
|
|
Income (loss) before
income taxes
|
|
(124,467)
|
|
77,047
|
|
164,803
|
|
262,830
|
|
134,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
(28,421)
|
|
29,146
|
|
73,153
|
|
99,314
|
|
47,010
|
|
Net income
(loss)
|
|
(96,046)
|
|
47,901
|
|
91,650
|
|
163,516
|
|
87,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to noncontrolling interests
|
|
51,015
|
|
6,754
|
|
65,374
|
|
25,798
|
|
3,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable to Steel
|
|
|
|
|
|
|
|
|
|
|
|
Dynamics, Inc.
|
|
$ (45,031)
|
|
$ 54,655
|
|
$ 157,024
|
|
$ 189,314
|
|
$ 91,173
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share attributable to
|
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics, Inc.
stockholders
|
|
$
(0.19)
|
|
$
0.25
|
|
$
0.68
|
|
$
0.86
|
|
$
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
outstanding
|
|
240,870
|
|
222,273
|
|
232,547
|
|
220,916
|
|
240,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
(loss) per share attributable
to
|
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics, Inc.
stockholders, including
|
|
|
|
|
|
|
|
|
|
|
|
the effect of assumed
conversions when
|
|
|
|
|
|
|
|
|
|
|
|
dilutive
|
|
$
(0.19)
|
|
$
0.24
|
|
$
0.67
|
|
$
0.83
|
|
$
0.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares and
|
|
|
|
|
|
|
|
|
|
|
|
equivalents outstanding
(Note 1)
|
|
240,870
|
|
240,493
|
|
242,078
|
|
238,996
|
|
242,244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared
per share
|
|
$
0.115
|
|
$
0.110
|
|
$
0.460
|
|
$
0.440
|
|
$
0.115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Note 1) Excludes the
impact of stock options, deferred stock units, and restricted stock
units on share equivalents outstanding for the three months
ended December 31, 2014 because the
impact on diluted loss per share is anti-dilutive.
|
Steel Dynamics,
Inc.
|
|
UNAUDITED
SUPPLEMENTAL OPERATING INFORMATION
|
|
(dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
Three Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
March
31,
|
|
June
30,
|
|
September
30,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
|
2014
|
|
2014
|
|
Steel
Operations*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ 1,843,864
|
|
$ 1,222,907
|
|
$ 5,968,904
|
|
$ 4,768,004
|
|
$ 1,189,933
|
|
$ 1,370,995
|
|
$ 1,564,112
|
|
|
Intra-company
|
|
(136,035)
|
|
(76,206)
|
|
(427,161)
|
|
(306,547)
|
|
(72,334)
|
|
(105,891)
|
|
(112,901)
|
|
|
External
|
|
$ 1,707,829
|
|
$ 1,146,701
|
|
$ 5,541,743
|
|
$ 4,461,457
|
|
$ 1,117,599
|
|
$ 1,265,104
|
|
$ 1,451,211
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
before amortization of intangibles
|
|
$
212,267
|
|
$
155,107
|
|
$
680,210
|
|
$
513,227
|
|
$
107,776
|
|
$
158,083
|
|
$
202,084
|
|
|
Amortization of
intangibles
|
|
(2,368)
|
|
(2,133)
|
|
(8,603)
|
|
(8,843)
|
|
(2,133)
|
|
(2,134)
|
|
(1,968)
|
|
Operating income
(Note 1)
|
|
$
209,899
|
|
$
152,974
|
|
$
671,607
|
|
$
504,384
|
|
$
105,643
|
|
$
155,949
|
|
$
200,116
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Butler Flat Roll
Division
|
|
759,059
|
|
738,998
|
|
2,917,259
|
|
2,904,149
|
|
641,520
|
|
778,220
|
|
738,460
|
|
|
Columbus Flat Roll
Division
|
|
698,907
|
|
-
|
|
873,661
|
|
-
|
|
-
|
|
-
|
|
174,754
|
|
|
The Techs
|
|
163,570
|
|
162,541
|
|
714,158
|
|
669,608
|
|
153,237
|
|
191,934
|
|
205,417
|
|
|
Structural and Rail
Division
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Structural
|
|
266,149
|
|
259,884
|
|
1,103,213
|
|
972,798
|
|
248,380
|
|
282,681
|
|
306,003
|
|
|
|
Rail
|
|
64,190
|
|
35,043
|
|
221,722
|
|
205,808
|
|
43,936
|
|
53,699
|
|
59,897
|
|
|
Engineered Bar
Products Division
|
|
172,769
|
|
123,865
|
|
646,731
|
|
488,393
|
|
144,303
|
|
152,768
|
|
176,891
|
|
|
Roanoke Bar
Division
|
|
131,613
|
|
150,986
|
|
572,373
|
|
569,260
|
|
143,782
|
|
143,583
|
|
153,395
|
|
|
Steel of West
Virginia
|
|
73,568
|
|
70,972
|
|
309,249
|
|
309,868
|
|
75,574
|
|
74,881
|
|
85,226
|
|
|
|
Total
|
|
2,329,825
|
|
1,542,289
|
|
7,358,366
|
|
6,119,884
|
|
1,450,732
|
|
1,677,766
|
|
1,900,043
|
|
|
|
Intra-company
|
|
(210,589)
|
|
(118,336)
|
|
(653,652)
|
|
(491,252)
|
|
(112,159)
|
|
(158,884)
|
|
(172,020)
|
|
|
|
External
|
|
2,119,236
|
|
1,423,953
|
|
6,704,714
|
|
5,628,632
|
|
1,338,573
|
|
1,518,882
|
|
1,728,023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Operations
Production (tons)
|
|
2,263,540
|
|
1,588,392
|
|
7,376,657
|
|
6,266,507
|
|
1,519,566
|
|
1,708,252
|
|
1,885,299
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals Recycling
and Ferrous Resources Operations**
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
972,759
|
|
$
907,668
|
|
$ 4,091,725
|
|
$ 3,663,486
|
|
$
993,505
|
|
$ 1,014,161
|
|
$ 1,111,300
|
|
|
Intra-company
|
|
(379,177)
|
|
(334,828)
|
|
(1,604,756)
|
|
(1,278,645)
|
|
(417,731)
|
|
(368,945)
|
|
(438,903)
|
|
|
External
|
|
$
593,582
|
|
$
572,840
|
|
$ 2,486,969
|
|
$ 2,384,841
|
|
$
575,774
|
|
$
645,216
|
|
$
672,397
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating loss before
amortization of intangibles
|
|
$
(17,547)
|
|
$
(13,020)
|
|
$
(30,843)
|
|
$
(30,835)
|
|
$
(10,981)
|
|
$
(1,517)
|
|
$
(798)
|
|
|
Impairment
Charges
|
|
(260,000)
|
|
-
|
|
(260,000)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Amortization of
intangibles
|
|
(4,281)
|
|
(5,238)
|
|
(17,887)
|
|
(21,633)
|
|
(4,538)
|
|
(4,536)
|
|
(4,532)
|
|
Operating loss (Note
1)
|
|
$ (281,828)
|
|
$
(18,258)
|
|
$ (308,730)
|
|
$
(52,468)
|
|
$
(15,519)
|
|
$
(6,053)
|
|
$
(5,330)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Metals
Recycling
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferrous metals
shipments (gross tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
1,325,337
|
|
1,356,258
|
|
5,566,238
|
|
5,505,995
|
|
1,364,533
|
|
1,422,697
|
|
1,453,671
|
|
|
Intra-company
|
|
(631,505)
|
|
(638,333)
|
|
(2,673,777)
|
|
(2,422,736)
|
|
(714,981)
|
|
(653,651)
|
|
(673,640)
|
|
|
External
|
|
693,832
|
|
717,925
|
|
2,892,461
|
|
3,083,259
|
|
649,552
|
|
769,046
|
|
780,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonferrous
metals shipments (thousands of pounds)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
289,124
|
|
254,876
|
|
1,173,771
|
|
1,052,494
|
|
270,978
|
|
288,233
|
|
325,436
|
|
|
Intra-company
|
|
(20,248)
|
|
(3,738)
|
|
(89,078)
|
|
(18,450)
|
|
(19,390)
|
|
(17,962)
|
|
(31,478)
|
|
|
External
|
|
268,876
|
|
251,138
|
|
1,084,693
|
|
1,034,044
|
|
251,588
|
|
270,271
|
|
293,958
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mesabi Nugget
shipments (metric tons) - Intra-company
|
96,445
|
|
59,460
|
|
243,810
|
|
215,833
|
|
37,488
|
|
32,542
|
|
77,335
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Iron Dynamics (metric
tons) - Intra-company
|
|
67,086
|
|
57,659
|
|
250,071
|
|
255,303
|
|
57,122
|
|
64,756
|
|
61,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Fabrication
Operations***
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
191,059
|
|
$
121,853
|
|
$
631,808
|
|
$
439,655
|
|
$
115,861
|
|
$
134,852
|
|
$
190,036
|
|
|
Intra-company
|
|
(15)
|
|
(125)
|
|
(58)
|
|
(1,401)
|
|
-
|
|
-
|
|
(43)
|
|
|
External
|
|
$
191,044
|
|
$
121,728
|
|
$
631,750
|
|
$
438,254
|
|
$
115,861
|
|
$
134,852
|
|
$
189,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) (Note 1)
|
|
$
21,704
|
|
$
(122)
|
|
$
51,894
|
|
$
7,003
|
|
$
3,126
|
|
$
7,590
|
|
$
19,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments
(tons)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
136,917
|
|
101,132
|
|
480,509
|
|
366,676
|
|
94,667
|
|
105,188
|
|
143,737
|
|
|
Intra-company
|
|
(11)
|
|
(98)
|
|
(39)
|
|
(1,030)
|
|
-
|
|
-
|
|
(28)
|
|
|
External
|
|
136,906
|
|
101,034
|
|
480,470
|
|
365,646
|
|
94,667
|
|
105,188
|
|
143,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
|
Steel Operations
include the company's six steelmaking divisions and The Techs three
galvanizing plants.
|
|
|
Columbus results are
included since the September 16, 2014 acquisition date.
|
**
|
|
Metals Recycling and
Ferrous Resources Operations include OmniSource; Iron Dynamics (all
shipments are internal); and
Minnesota Operations (all shipments have been internal).
|
***
|
|
Steel Fabrication
Operations include the company's joist and deck fabrication
operations.
|
(Note 1) Segment
operating income (loss) excludes profit sharing expense.
|
Steel Dynamics,
Inc.
|
CONSOLIDATED
BALANCE SHEETS
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
(unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and
equivalents
|
|
$ 361,363
|
|
$ 395,156
|
|
|
|
Accounts receivable,
net
|
|
902,825
|
|
720,600
|
|
|
|
Inventories
|
|
1,618,419
|
|
1,314,747
|
|
|
|
Deferred income
taxes
|
|
35,503
|
|
17,964
|
|
|
|
Other current
assets
|
|
55,655
|
|
25,167
|
|
|
|
Total current Assets
|
|
2,973,765
|
|
2,473,634
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant
and equipment, net
|
|
3,123,906
|
|
2,226,134
|
|
|
|
|
|
|
|
|
|
|
|
Restricted
cash
|
|
19,312
|
|
23,827
|
|
|
|
|
|
|
|
|
|
|
|
Intangible assets,
net
|
|
370,669
|
|
386,159
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
745,158
|
|
731,996
|
|
|
|
|
|
|
|
|
|
|
|
Other
assets
|
|
78,217
|
|
91,256
|
|
|
|
Total assets
|
|
$ 7,311,027
|
|
$ 5,933,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
|
$ 511,056
|
|
$ 414,932
|
|
|
|
Income taxes
payable
|
|
6,086
|
|
4,023
|
|
|
|
Accrued expenses
|
|
286,980
|
|
214,679
|
|
|
|
Current maturities of
long-term debt
|
|
46,460
|
|
341,544
|
|
|
|
Total current liabilities
|
|
850,582
|
|
975,178
|
|
|
|
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
|
|
|
|
|
Senior term loan
|
|
237,500
|
|
220,000
|
|
|
|
Senior notes
|
|
2,700,000
|
|
1,500,000
|
|
|
|
Other long-term
debt
|
|
40,206
|
|
46,045
|
|
|
|
Total long-term debt
|
|
2,977,706
|
|
1,766,045
|
|
|
|
|
|
|
|
|
|
|
|
Deferred income
taxes
|
|
542,033
|
|
556,038
|
|
|
|
Other
liabilities
|
|
18,839
|
|
23,376
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
Redeemable
noncontrolling interests
|
|
126,340
|
|
116,514
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Common stock
|
|
635
|
|
645
|
|
|
|
Treasury stock, at
cost
|
|
(398,898)
|
|
(718,529)
|
|
|
|
Additional paid-in
capital
|
|
1,083,435
|
|
1,085,694
|
|
|
|
Retained earnings
|
|
2,227,843
|
|
2,179,513
|
|
|
|
Total Steel Dynamics, Inc. equity
|
|
2,913,015
|
|
2,547,323
|
|
|
|
Noncontrolling
interests
|
|
(117,488)
|
|
(51,468)
|
|
|
|
Total equity
|
|
2,795,527
|
|
2,495,855
|
|
|
|
Total liabilities and equity
|
|
$ 7,311,027
|
|
$ 5,933,006
|
|
|
|
|
|
|
|
|
|
|
Steel Dynamics,
Inc.
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS (UNAUDITED)
|
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ (96,046)
|
|
$ 47,901
|
|
$ 91,650
|
|
$ 163,516
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to
reconcile net income (loss) to net cash
|
|
|
|
|
|
|
|
|
|
|
|
provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
81,359
|
|
58,839
|
|
263,325
|
|
230,928
|
|
|
|
Impairment
charges
|
|
260,000
|
|
-
|
|
260,000
|
|
308
|
|
|
|
Equity-based
compensation
|
|
(1,556)
|
|
5,892
|
|
14,016
|
|
15,504
|
|
|
|
Deferred income
taxes
|
|
(17,254)
|
|
(871)
|
|
(25,042)
|
|
30,737
|
|
|
|
Changes in certain assets
and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
155,500
|
|
52,273
|
|
(2,191)
|
|
(78,237)
|
|
|
|
Inventories
|
|
47,642
|
|
(118,385)
|
|
68,730
|
|
(108,025)
|
|
|
|
Accounts payable
|
|
(104,257)
|
|
(12,278)
|
|
(76,141)
|
|
40,141
|
|
|
|
Income taxes receivable/payable
|
|
(44,577)
|
|
(2,522)
|
|
(22,086)
|
|
(12,494)
|
|
|
|
Other assets and liabilities
|
|
38,770
|
|
35,635
|
|
45,311
|
|
29,797
|
|
|
|
Net cash provided by
operating activities
|
|
319,581
|
|
66,484
|
|
617,572
|
|
312,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of property,
plant and equipment
|
|
(28,879)
|
|
(40,099)
|
|
(111,785)
|
|
(186,843)
|
|
|
|
Acquisition of
business, net of cash acquired
|
|
(21,986)
|
|
-
|
|
(1,669,449)
|
|
-
|
|
|
|
Other investing
activities
|
|
(190)
|
|
(1,643)
|
|
33,967
|
|
33,998
|
|
|
|
Net cash used in investing
activities
|
|
(51,055)
|
|
(41,742)
|
|
(1,747,267)
|
|
(152,845)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing
activities:
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of current
and long-term debt
|
|
320,201
|
|
5,146
|
|
1,822,096
|
|
423,965
|
|
|
|
Repayment of current
and long-term debt
|
|
(364,387)
|
|
(5,878)
|
|
(635,578)
|
|
(517,978)
|
|
|
|
Debt issuance
costs
|
|
(4,199)
|
|
(3)
|
|
(22,219)
|
|
(6,195)
|
|
|
|
Exercise of stock
options proceeds, including related tax impact
|
9,312
|
|
18,992
|
|
32,309
|
|
37,508
|
|
|
|
Contributions from
noncontrolling investors, net
|
|
(39)
|
|
6,449
|
|
4,673
|
|
17,421
|
|
|
|
Dividends
paid
|
|
(27,642)
|
|
(24,348)
|
|
(105,379)
|
|
(94,812)
|
|
|
|
Net cash provided by (used
in) financing activities
|
|
(66,754)
|
|
358
|
|
1,095,902
|
|
(140,091)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and equivalents
|
|
201,772
|
|
25,100
|
|
(33,793)
|
|
19,239
|
|
|
|
Cash and equivalents
at beginning of period
|
|
159,591
|
|
370,056
|
|
395,156
|
|
375,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents
at end of period
|
|
$ 361,363
|
|
$ 395,156
|
|
$ 361,363
|
|
$ 395,156
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$ 13,787
|
|
$ 22,109
|
|
$ 114,310
|
|
$ 129,499
|
|
|
|
Cash paid for federal
and state income taxes, net
|
|
$ 34,103
|
|
$ 30,889
|
|
$ 120,521
|
|
$ 72,436
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/steel-dynamics-reports-2014-fourth-quarter-and-full-year-results-300027451.html
SOURCE Steel Dynamics, Inc.