WEST CHESTER, Ohio,
Jan. 27, 2015 /PRNewswire/ -- AK
Steel (NYSE: AKS) today reported its financial results for the
fourth quarter and full year of 2014.
4th Quarter 2014 Performance Summary
- Shipments of 2,010,200 tons
- Sales of $2 billion with
an average selling price of $987 per
ton
- Net income of $13.5
million, or $0.07 per diluted
share
- Adjusted net income of $26.1
million, or $0.14 per diluted
share
- Adjusted EBITDA of $117.0
million
- Successful reline of the Ashland Works blast furnace
hearth
- Liquidity of approximately $872
million
AK Steel reported net income of $13.5
million, or $0.07 per diluted
share of common stock, for the fourth quarter of 2014, compared to
net income of $35.2 million, or
$0.26 per diluted share, for the
fourth quarter of 2013. Excluding the fourth quarter effects of
pension and other postretirement benefit ("OPEB") charges and
one-time expenses associated with the acquisition of Severstal
Dearborn, LLC ("Dearborn"), the
company reported adjusted net income of $26.1 million, or $0.14 per diluted share, for the fourth quarter
of 2014. Neither the pension corridor charge nor OPEB loss had any
current cash flow impact.
The company reported adjusted EBITDA (as defined in the
"Non-GAAP Financial Measures" section below) of $117.0 million, or $58 per ton, for the fourth quarter of 2014
compared to $87.2 million, or
$61 per ton, for the fourth quarter
of 2013. The company's results compared favorably to a third
quarter 2014 net loss of $7.2
million, or $0.05 per diluted
share, and third quarter adjusted EBITDA of $100.5 million, or $69 per ton, despite the fact the company
experienced $31 million in costs in
the fourth quarter associated with a planned outage at its Ashland
Works blast furnace.
Income tax expense was $0.2
million for the fourth quarter of 2014 compared to an income
tax benefit of $24.0 million for the
fourth quarter of 2013 and income tax expense of $3.9 million for the third quarter of 2014.
"AK Steel's improved financial performance represented its best
quarter of the year and quarter-over-quarter reflects strong market
demand for our automotive products, lower steelmaking input costs,
and the first full quarter of results associated with the Dearborn
Works acquisition," said James L.
Wainscott, Chairman, President and CEO of AK Steel. "Also,
we successfully completed a planned reline of our Ashland Works
blast furnace hearth during the quarter, which helps position AK
Steel well to serve our customers for many years to come."
Net sales for the fourth quarter of 2014 were $2.00 billion on shipments of 2,010,200 tons,
compared to net sales of $1.46
billion on shipments of 1,420,000 tons for the year-ago
fourth quarter and net sales of $1.59
billion on shipments of 1,462,900 tons for the third quarter
of 2014. The increase in shipments in the fourth quarter of 2014
compared to the year-ago quarter was principally due to the
acquisition of Dearborn Works and continued strong demand from the
automotive market. The increase in shipments in the fourth quarter
of 2014 compared to the third quarter of 2014 was largely due to
the acquisition of Dearborn Works and increased shipments to the
carbon spot market.
The company said its average selling price for the fourth
quarter of 2014 was $987 per ton, a
4% decrease from the $1,031 per ton
reported for the fourth quarter of 2013 and a 9% decrease from the
$1,089 per ton reported for the third
quarter of 2014. The lower overall average selling price in the
fourth quarter of 2014 compared to the year-ago quarter was
primarily due to the higher proportion of hot-rolled coil shipments
in the overall sales mix as a result of the Dearborn Works
acquisition. The lower overall average selling price in the fourth
quarter of 2014 compared to the third quarter of 2014 was related
both to the increase in hot rolled coil shipments as a result of
the Dearborn Works acquisition, which resulted in a higher
percentage of product shipments to the carbon spot market, as well
as to a general reduction in spot market pricing.
During the fourth quarter of 2014, the company successfully
completed the planned outage of the Ashland Works blast furnace to
reline the hearth. The outage included $18.0
million of capital investments and costs of $31.0 million associated with the planned outage,
as well as reduced production levels at Ashland Works in the period
prior to the outage.
Included in the results for the fourth quarter of 2014 were a
pension corridor charge of $2.0
million and an OPEB settlement loss of $3.5 million related to the Butler Works retiree
settlement, totaling $0.03 per
diluted share in aggregate, and acquisition-related expenses
described below of $7.1 million, or
$0.04 per diluted share. The 2014
fourth quarter results also include a LIFO inventory credit of
$5.3 million, compared to a LIFO
credit of $4.3 million for the fourth
quarter of 2013 and a LIFO credit of $10.9
million for the third quarter of 2014.
The company ended 2014 with total liquidity of $872.3 million. Liquidity consists of cash and
cash equivalents of $51.0 million and
$821.3 million of availability under
the company's revolving credit facility. There were $605.0 million of outstanding borrowings under
the company's revolving credit facility as of the end of 2014.
Full-Year 2014 Results
For the full year 2014, the company reported a net loss of
$96.9 million, or $0.65 per diluted share, compared to a net loss
of $46.8 million, or $0.34 per diluted share, for 2013. Excluding the
effects of the pension corridor and OPEB settlement charges and
acquisition-related expenses described below, the company reported
an adjusted net loss of $59.7
million, or $0.40 per diluted
share.
Sales for 2014 were $6.51 billion,
an increase of 17% compared to $5.57
billion for 2013. Shipments for 2014 were 6,132,700 tons, an
increase of 16% from 5,275,900 tons in 2013. Both increases were
principally due to the acquisition of Dearborn Works and increased
demand from the automotive market. The company said its average
selling price for full-year 2014 was $1,058 per ton, slightly higher than the
$1,056 per ton reported for 2013. The
increase in the average selling price for full-year 2014 was
primarily due to increased sales to the automotive market and
higher spot market pricing in the periods prior to the fourth
quarter, partially offset by a higher percentage of product
shipments to the spot market which included the increase in
hot-rolled shipments as a result of the Dearborn Works
acquisition.
Extreme winter weather conditions in early 2014 resulted in
extra costs of approximately $45.0
million for 2014. Energy costs were higher in the first
quarter of 2014, primarily for electricity and natural gas. The
extreme winter weather conditions also affected the delivery of
iron ore pellets in the second quarter of 2014, with the company
incurring additional costs for transportation and operations.
Incidents at the company's Ashland Works blast furnace in
February and the third quarter of 2014 resulted in unplanned outage
costs of approximately $41.2 million
in 2014. In addition, the planned outage in the fourth quarter of
2014 resulted in costs of $31.0
million associated with the planned outage itself and
reduced production levels in the period prior to the outage. Prior
year results include the effects of the June
2013 incident at the company's Middletown Works blast furnace, which resulted
in unplanned outage costs of approximately $22.3 million in 2013.
The company reported adjusted EBITDA of $280.2 million, or $46 per ton, for 2014 compared to adjusted EBITDA
of $255.0 million, or $48 per ton, for 2013.
Acquisition of Dearborn
As previously disclosed, on September 16,
2014, AK Steel completed its acquisition of Dearborn, which included the integrated
steelmaking assets located in Dearborn,
Michigan, the Mountain State Carbon, LLC cokemaking facility
located in Follansbee, West
Virginia, and interests in joint ventures that process
flat-rolled steel products. The company's results for the year
ended December 31, 2014, include the
effects of the acquisition and Dearborn's operations for the period from the
date of acquisition. The results for the three months and year
ended December 31, 2014 include net
sales of $477.0 million and
$567.0 million, respectively, and
shipments of 596,000 tons and 707,000 tons, respectively,
attributable to Dearborn since the
completion of the acquisition.
For the three months ended December 31,
2014, the company incurred acquisition-related costs of
$7.1 million consisting of an income
tax charge of $6.3 million and
transaction fees of $0.8 million. For
the year ended December 31, 2014, the
company's results included acquisition-related costs of
$31.7 million, consisting of
$12.6 million of costs included in
other income (expense) for committed bridge financing that was not
utilized to complete the acquisition, transaction fees and direct
costs of $10.7 million included in
selling and administrative costs, and income tax charges of
$8.4 million. The tax charges are
related to changes in the value of the company's deferred tax
assets resulting from the acquisition of Dearborn Works.
First Quarter 2015 Outlook
Consistent with its current practice, the company said that it
will provide detailed guidance for its first quarter results of
2015 in March.
Safe Harbor Statement
The statements in this release with respect to future results
reflect management's estimates and beliefs and are intended to be,
and hereby are identified as "forward-looking statements" for
purposes of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Words such as "expects,"
"anticipates," "believes," "intends," "plans," "estimates" and
other similar references to future periods typically identify such
forward-looking statements.
The company cautions readers that such forward-looking
statements involve risks and uncertainties that could cause actual
results to differ materially from those currently expected by
management, including that Dearborn will not be integrated successfully
into AK Steel following the consummation of the acquisition, and
that cost savings, synergies, accretion to earnings, increased
shipments and other anticipated benefits and opportunities from the
acquisition may not be fully realized or may take longer to realize
than expected. In addition, our results and financial condition and
any benefits from the acquisition could be adversely affected by
reduced selling prices, shipments and profits associated with a
highly competitive industry with excess capacity; changes in the
cost of raw materials and energy; the company's significant amount
of debt and other obligations; severe financial hardship or
bankruptcy of one or more of the company's major customers; reduced
demand in key product markets due to competition from alternatives
to steel or other factors; increased global steel production and
imports; excess inventory of raw materials; supply chain
disruptions or poor quality of raw materials; production disruption
or reduced production levels; the company's healthcare and pension
obligations; not timely reaching new labor agreements; major
litigation, arbitrations, environmental issues and other
contingencies; regulatory compliance and changes; climate change
and greenhouse gas emission limitations; conditions in the
financial, credit, capital and banking markets; the company's use
of derivative contracts to hedge commodity pricing volatility; the
value of the company's net deferred tax assets; inability to fully
realize benefits of long-term cost savings and margin enhancement
initiatives; lower quantities, quality or yield of estimated coal
reserves of AK Coal Resources, Inc.; increased governmental
regulation of mining activities; inability to hire or retain
skilled labor and experienced manufacturing and mining managers;
and IT security threats and sophisticated cybercrime; as well as
those risks and uncertainties discussed in the company's Annual
Report on Form 10-K for the year ended December 31, 2013, as updated in subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
filed with or furnished to the Securities and Exchange Commission.
Except as required by law, the company disclaims any obligation to
update any forward-looking statements to reflect future
developments or events.
AK Steel
AK Steel is a world leader in the production of flat-rolled
carbon, stainless and electrical steel products, primarily for
automotive, infrastructure and manufacturing, construction and
electrical power generation and distribution markets. The company's
AK Tube LLC subsidiary produces carbon and stainless electric
resistance welded tubular steel products for truck, automotive and
other markets. Headquartered in West
Chester, Ohio (Greater
Cincinnati), the company employs approximately 8,000 men and
women at eight steel plants, two coke plants and two tube
manufacturing plants across six states: Indiana, Kentucky, Michigan, Ohio, Pennsylvania and West Virginia. The company also has interests
in iron ore through its Magnetation LLC joint venture and in
metallurgical coal through its AK Coal Resources, Inc. subsidiary.
Additional information about AK Steel is available at
www.aksteel.com.
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AK STEEL HOLDING
CORPORATION
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CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
(Dollars and shares
in millions, except per share and per ton data)
|
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Three Months
Ended
December
31,
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Twelve Months
Ended
December
31,
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|
2014
|
|
2013
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|
2014
|
|
2013
|
Shipments (000
tons)
|
|
2,010.2
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1,420.0
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6,132.7
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|
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5,275.9
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|
Selling price per
ton
|
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$
|
987
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$
|
1,031
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$
|
1,058
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|
$
|
1,056
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|
|
|
|
|
|
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Net
sales
|
|
$
|
1,997.6
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|
|
$
|
1,464.8
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|
|
$
|
6,505.7
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|
$
|
5,570.4
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|
|
|
|
|
|
Cost of products
sold
|
|
1,816.3
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|
|
1,323.9
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|
6,007.7
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|
5,107.8
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Selling and
administrative expenses
|
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67.5
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|
52.0
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247.2
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205.3
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Depreciation
|
|
55.6
|
|
|
45.2
|
|
|
201.9
|
|
|
190.1
|
|
Pension and OPEB
expense (income)
|
|
(18.3)
|
|
|
(19.3)
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|
|
(92.5)
|
|
|
(68.6)
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|
Pension corridor
charge
|
|
2.0
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|
—
|
|
|
2.0
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|
|
—
|
|
Total operating
costs
|
|
1,923.1
|
|
|
1,401.8
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|
|
6,366.3
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|
|
5,434.6
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|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
74.5
|
|
|
63.0
|
|
|
139.4
|
|
|
135.8
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|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
43.7
|
|
|
32.3
|
|
|
144.7
|
|
|
127.4
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Other income
(expense)
|
|
(0.9)
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|
|
(2.9)
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(21.1)
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(1.4)
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|
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|
|
|
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Income (loss)
before income taxes
|
|
29.9
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|
|
27.8
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|
(26.4)
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7.0
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|
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|
|
|
|
|
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|
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Income tax expense
(benefit)
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0.2
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(24.0)
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7.7
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|
(10.4)
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|
|
|
|
|
|
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|
|
Net income
(loss)
|
|
29.7
|
|
|
51.8
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|
|
(34.1)
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|
|
17.4
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Less: Net income
attributable to noncontrolling interests
|
|
16.2
|
|
|
16.6
|
|
|
62.8
|
|
|
64.2
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|
|
|
|
|
|
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Net income (loss)
attributable to AK Steel Holding Corporation
|
|
$
|
13.5
|
|
|
$
|
35.2
|
|
|
$
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(96.9)
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|
$
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(46.8)
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Basic earnings per
share:
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Net income (loss)
attributable to AK Steel Holding Corporation:
|
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$
|
0.08
|
|
|
$
|
0.26
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$
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(0.65)
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|
$
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(0.34)
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Diluted earnings
per share:
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Net income (loss)
attributable to AK Steel Holding Corporation:
|
|
$
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0.07
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$
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0.26
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|
$
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(0.65)
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|
$
|
(0.34)
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Weighted-average
shares outstanding:
|
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|
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|
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Basic
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176.6
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|
135.9
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148.1
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|
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135.8
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Diluted
|
|
181.2
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136.3
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148.1
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135.8
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AK STEEL HOLDING
CORPORATION
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CONSOLIDATED
BALANCE SHEETS
|
(Unaudited)
|
(Dollars in millions,
except per share amounts)
|
|
|
|
|
|
|
|
December 31,
2014
|
|
December 31,
2013
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ASSETS
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|
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|
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Current
assets:
|
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|
|
Cash and cash
equivalents
|
|
$
|
70.2
|
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|
$
|
45.3
|
|
Accounts receivable,
net
|
|
644.3
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|
525.2
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Inventory,
net
|
|
1,172.1
|
|
|
586.6
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Other current
assets
|
|
139.1
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|
|
116.1
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Total current
assets
|
|
2,025.7
|
|
|
1,273.2
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Property, plant and
equipment
|
|
6,388.4
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|
|
5,871.9
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Accumulated
depreciation
|
|
(4,175.2)
|
|
|
(3,991.8)
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|
Property, plant and
equipment, net
|
|
2,213.2
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|
1,880.1
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Investments in
affiliates
|
|
388.7
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|
|
214.1
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Other non-current
assets
|
|
230.9
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|
|
238.3
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TOTAL
ASSETS
|
|
$
|
4,858.5
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|
|
$
|
3,605.7
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LIABILITIES AND
EQUITY (DEFICIT)
|
|
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|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
|
803.1
|
|
|
$
|
601.8
|
|
Accrued
liabilities
|
|
266.5
|
|
|
142.9
|
|
Current portion of
long-term debt
|
|
—
|
|
|
0.8
|
|
Current portion of
pension and other postretirement benefit obligations
|
|
55.6
|
|
|
85.9
|
|
Total current
liabilities
|
|
1,125.2
|
|
|
831.4
|
|
Long-term
debt
|
|
2,452.5
|
|
|
1,506.2
|
|
Pension and other
postretirement benefit obligations
|
|
1,225.3
|
|
|
965.4
|
|
Other non-current liabilities
|
|
132.5
|
|
|
110.0
|
|
TOTAL
LIABILITIES
|
|
4,935.5
|
|
|
3,413.0
|
|
|
|
|
|
|
Equity
(deficit):
|
|
|
|
|
Common stock,
authorized 300,000,000 shares of $.01 par value each; issued
177,362,600 and 149,691,388 shares in
2014 and 2013; outstanding 177,215,816 and 136,380,078 shares in 2014 and 2013
|
|
1.8
|
|
|
1.5
|
|
Additional paid-in
capital
|
|
2,259.1
|
|
|
2,079.2
|
|
Treasury stock,
common shares at cost, 146,784 and 13,311,310 shares in 2014
and 2013
|
|
(1.0)
|
|
|
(174.0)
|
|
Accumulated
deficit
|
|
(2,548.0)
|
|
|
(2,451.1)
|
|
Accumulated other
comprehensive income (loss)
|
|
(204.4)
|
|
|
323.4
|
|
Total stockholders'
equity (deficit)
|
|
(492.5)
|
|
|
(221.0)
|
|
Noncontrolling
interests
|
|
415.5
|
|
|
413.7
|
|
TOTAL EQUITY
(DEFICIT)
|
|
(77.0)
|
|
|
192.7
|
|
TOTAL LIABILITIES
AND EQUITY (DEFICIT)
|
|
$
|
4,858.5
|
|
|
$
|
3,605.7
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING
CORPORATION
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
Twelve Months
Ended
December
31,
|
|
|
2014
|
|
2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
|
(34.1)
|
|
|
$
|
17.4
|
|
Pension corridor
charge
|
|
2.0
|
|
|
—
|
|
Depreciation
|
|
187.6
|
|
|
176.1
|
|
Depreciation—SunCoke
Middletown
|
|
14.3
|
|
|
14.0
|
|
Amortization
|
|
20.4
|
|
|
19.1
|
|
Deferred income
taxes
|
|
8.2
|
|
|
(7.3)
|
|
Pension and OPEB
expense (income)
|
|
(92.5)
|
|
|
(68.6)
|
|
Contributions to
pension trust
|
|
(196.5)
|
|
|
(181.1)
|
|
Contributions to
Butler and Zanesville retirees VEBAs
|
|
(3.1)
|
|
|
(30.8)
|
|
Other postretirement
payments
|
|
(63.9)
|
|
|
(63.4)
|
|
Changes in working
capital
|
|
(154.3)
|
|
|
7.3
|
|
Changes in working
capital—SunCoke Middletown
|
|
(10.9)
|
|
|
4.3
|
|
Other operating
items, net
|
|
—
|
|
|
2.8
|
|
Net cash flows from
operating activities
|
|
(322.8)
|
|
|
(110.2)
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Capital
investments
|
|
(79.7)
|
|
|
(60.0)
|
|
Capital
investments—SunCoke Middletown
|
|
(1.4)
|
|
|
(3.6)
|
|
Investments in
Magnetation
|
|
(100.0)
|
|
|
(50.0)
|
|
Investments in
acquired businesses, net of cash acquired
|
|
(690.3)
|
|
|
—
|
|
Other investing
items, net
|
|
13.6
|
|
|
15.1
|
|
Net cash flows from
investing activities
|
|
(857.8)
|
|
|
(98.5)
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Net borrowings
(repayments) under credit facility
|
|
515.0
|
|
|
90.0
|
|
Proceeds from
issuance of long-term debt
|
|
427.1
|
|
|
31.9
|
|
Redemption of
long-term debt
|
|
(0.8)
|
|
|
(27.4)
|
|
Proceeds from
issuance of common stock
|
|
345.3
|
|
|
—
|
|
Debt issuance
costs
|
|
(15.5)
|
|
|
(3.4)
|
|
SunCoke Middletown
distributions to noncontrolling interest owners
|
|
(61.0)
|
|
|
(64.8)
|
|
Other financing
items, net
|
|
(4.6)
|
|
|
0.7
|
|
Net cash flows from
financing activities
|
|
1,205.5
|
|
|
27.0
|
|
|
|
|
|
|
Net increase
(decrease) in cash and cash equivalents
|
|
24.9
|
|
|
(181.7)
|
|
Cash and cash
equivalents, beginning of period
|
|
45.3
|
|
|
227.0
|
|
Cash and cash
equivalents, end of period
|
|
$
|
70.2
|
|
|
$
|
45.3
|
|
|
|
|
|
|
AK STEEL HOLDING
CORPORATION
NON-GAAP FINANCIAL
MEASURES
(Unaudited)
(Dollars in millions)
In certain of its disclosures in this news release, the company
has reported adjusted EBITDA and adjusted net income (loss) that
exclude the effects of a pension corridor charge, an OPEB
settlement loss and the acquisition-related expenses of
Dearborn. Management believes that
reporting adjusted net income (loss) attributable to AK Holding (as
a total and on a per share basis) with these items excluded more
clearly reflects the company's current operating results and
provides investors with a better understanding of the company's
overall financial performance.
EBITDA is an acronym for earnings before interest, taxes,
depreciation and amortization. It is a metric that is sometimes
used to compare the results of companies by removing the effects of
different factors that might otherwise make comparisons inaccurate
or inappropriate. For purposes of this news release, the company
has made adjustments to EBITDA in order to exclude the effect of
noncontrolling interests, a pension corridor accounting charge, an
OPEB settlement loss and the acquisition-related expenses of
Dearborn. The adjusted results,
although not financial measures under generally accepted accounting
principles in the United States
("GAAP") and not identically applied by other companies, facilitate
the ability to analyze the company's financial results in relation
to those of its competitors and to the company's prior financial
performance by excluding items that otherwise would distort the
comparison. Adjusted EBITDA and adjusted net income (loss) are not,
however, intended as alternative measures of operating results or
cash flow from operations as determined in accordance with GAAP and
are not necessarily comparable to similarly titled measures used by
other companies.
In addition, the adjusted results, although not a financial
measure under GAAP, facilitate the ability to analyze the company's
financial results in relation to those of its competitors and to
the company's prior financial performance by excluding items which
otherwise would distort the comparison. Although the pension
corridor charge and OPEB settlement loss reduce reported net
income, they do not affect the Company's cash flows in the current
period. However, the pension obligation will be ultimately settled
in cash.
Management views the reported results of adjusted EBITDA and
adjusted net income (loss) as important operating performance
measures and believes that the GAAP financial measure most directly
comparable is net income (loss) (as a total and on a per share
basis). Adjusted EBITDA and adjusted net income (loss) are used by
management as a supplemental financial measure to evaluate the
performance of the business. Management believes that these
non-GAAP measures, when analyzed in conjunction with the company's
GAAP results and the accompanying reconciliations, provide
additional insight into the financial trends of the company's
business versus the GAAP results alone.
Neither current shareholders nor potential investors in the
company's securities should rely on adjusted EBITDA or adjusted net
income (loss) as a substitute for any GAAP financial measure and
the company encourages current and potential investors to review
the following reconciliations of net income (loss) attributable to
AK Holding to adjusted EBITDA and adjusted net income (loss).
Reconciliation of
Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
Three
Months
Ended
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Net income (loss)
attributable to AK Holding
|
|
$
|
13.5
|
|
|
$
|
35.2
|
|
|
$
|
(96.9)
|
|
|
$
|
(46.8)
|
|
|
$
|
(7.2)
|
|
Net income
attributable to noncontrolling
interests
|
|
16.2
|
|
|
16.6
|
|
|
62.8
|
|
|
64.2
|
|
|
16.1
|
|
Income tax expense
(benefit)
|
|
0.2
|
|
|
(24.0)
|
|
|
7.7
|
|
|
(10.4)
|
|
|
3.9
|
|
Interest
expense
|
|
43.7
|
|
|
32.3
|
|
|
144.7
|
|
|
127.4
|
|
|
35.6
|
|
Interest
income
|
|
(0.7)
|
|
|
(0.1)
|
|
|
(0.7)
|
|
|
(1.1)
|
|
|
—
|
|
Depreciation
|
|
55.6
|
|
|
45.2
|
|
|
201.9
|
|
|
190.1
|
|
|
49.1
|
|
Amortization
|
|
1.9
|
|
|
2.2
|
|
|
9.1
|
|
|
9.9
|
|
|
1.4
|
|
EBITDA
|
|
130.4
|
|
|
107.4
|
|
|
328.6
|
|
|
333.3
|
|
|
98.9
|
|
Less: EBITDA of
noncontrolling interests (a)
|
|
19.7
|
|
|
20.2
|
|
|
77.2
|
|
|
78.3
|
|
|
19.9
|
|
Pension corridor
charge/OPEB settlement loss
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|
—
|
|
|
—
|
|
Acquisition-related
expenses
|
|
0.8
|
|
|
—
|
|
|
23.3
|
|
|
—
|
|
|
21.5
|
|
Adjusted
EBITDA
|
|
$
|
117.0
|
|
|
$
|
87.2
|
|
|
$
|
280.2
|
|
|
$
|
255.0
|
|
|
$
|
100.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA per
ton
|
|
$
|
58
|
|
|
$
|
61
|
|
|
$
|
46
|
|
|
$
|
48
|
|
|
$
|
69
|
|
|
|
(a)The reconciliation
of EBITDA of noncontrolling interests to net income attributable to
noncontrolling interests is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
millions)
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
Three
Months
Ended
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Net income
attributable to noncontrolling
interests
|
|
$
|
16.2
|
|
|
$
|
16.6
|
|
|
$
|
62.8
|
|
|
$
|
64.2
|
|
|
$
|
16.1
|
|
Depreciation
|
|
3.5
|
|
|
3.6
|
|
|
14.4
|
|
|
14.1
|
|
|
3.8
|
|
EBITDA of
noncontrolling interests
|
|
$
|
19.7
|
|
|
$
|
20.2
|
|
|
$
|
77.2
|
|
|
$
|
78.3
|
|
|
$
|
19.9
|
|
Reconciliation of
Adjusted Net Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in millions,
except per share)
|
|
Three Months Ended
December 31,
|
|
Twelve Months
Ended December 31,
|
|
Three
Months
Ended
September
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
2014
|
Reconciliation to
Net Income (Loss)
Attributable to AK
Steel Holding
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
(loss) attributable to AK Steel Holding Corporation
|
|
$
|
26.1
|
|
|
$
|
35.2
|
|
|
$
|
(59.7)
|
|
|
$
|
(46.8)
|
|
|
$
|
16.4
|
|
Pension corridor
charge/OPEB settlement loss
|
|
(5.5)
|
|
|
—
|
|
|
(5.5)
|
|
|
—
|
|
|
—
|
|
Acquisition-related
expenses
|
|
(7.1)
|
|
|
—
|
|
|
(31.7)
|
|
|
—
|
|
|
(23.6)
|
|
Net income (loss)
attributable to AK Steel Holding Corporation, as reported
|
|
$
|
13.5
|
|
|
$
|
35.2
|
|
|
$
|
(96.9)
|
|
|
$
|
(46.8)
|
|
|
$
|
(7.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to
Diluted Earnings (Losses) per Share
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings (losses) per share
|
|
$
|
0.14
|
|
|
$
|
0.26
|
|
|
$
|
(0.40)
|
|
|
$
|
(0.34)
|
|
|
$
|
0.12
|
|
Pension corridor
charge/OPEB settlement loss
|
|
(0.03)
|
|
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
—
|
|
Acquisition-related
expenses
|
|
(0.04)
|
|
|
—
|
|
|
(0.21)
|
|
|
—
|
|
|
(0.17)
|
|
Diluted earnings
(losses) per share, as reported
|
|
$
|
0.07
|
|
|
$
|
0.26
|
|
|
$
|
(0.65)
|
|
|
$
|
(0.34)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING
CORPORATION
|
STEEL
SHIPMENTS
|
(Unaudited)
|
(Tons in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Tons Shipped by
Product
|
|
|
|
|
|
|
|
|
Stainless/electrical
|
|
221.3
|
|
|
195.6
|
|
|
867.9
|
|
|
822.1
|
|
Coated
|
|
877.4
|
|
|
656.8
|
|
|
2,812.7
|
|
|
2,469.6
|
|
Cold-rolled
|
|
358.4
|
|
|
314.9
|
|
|
1,231.1
|
|
|
1,115.9
|
|
Tubular
|
|
30.0
|
|
|
29.7
|
|
|
125.5
|
|
|
122.2
|
|
Subtotal
value-added shipments
|
|
1,487.1
|
|
|
1,197.0
|
|
|
5,037.2
|
|
|
4,529.8
|
|
|
|
|
|
|
|
|
|
|
Hot-rolled
|
|
469.4
|
|
|
195.9
|
|
|
949.7
|
|
|
643.5
|
|
Secondary
|
|
53.7
|
|
|
27.1
|
|
|
145.8
|
|
|
102.6
|
|
Subtotal non
value-added shipments
|
|
523.1
|
|
|
223.0
|
|
|
1,095.5
|
|
|
746.1
|
|
|
|
|
|
|
|
|
|
|
Total
shipments
|
|
2,010.2
|
|
|
1,420.0
|
|
|
6,132.7
|
|
|
5,275.9
|
|
|
|
|
|
|
|
|
|
|
Shipments by
Product (%)
|
|
|
|
|
|
|
|
|
Stainless/electrical
|
|
11.0
|
%
|
|
13.8
|
%
|
|
14.1
|
%
|
|
15.6
|
%
|
Coated
|
|
43.6
|
%
|
|
46.2
|
%
|
|
45.9
|
%
|
|
46.8
|
%
|
Cold-rolled
|
|
17.8
|
%
|
|
22.2
|
%
|
|
20.1
|
%
|
|
21.2
|
%
|
Tubular
|
|
1.5
|
%
|
|
2.1
|
%
|
|
2.0
|
%
|
|
2.3
|
%
|
Subtotal
value-added shipments
|
|
73.9
|
%
|
|
84.3
|
%
|
|
82.1
|
%
|
|
85.9
|
%
|
|
|
|
|
|
|
|
|
|
Hot-rolled
|
|
23.4
|
%
|
|
13.8
|
%
|
|
15.5
|
%
|
|
12.2
|
%
|
Secondary
|
|
2.7
|
%
|
|
1.9
|
%
|
|
2.4
|
%
|
|
1.9
|
%
|
Subtotal non
value-added shipments
|
|
26.1
|
%
|
|
15.7
|
%
|
|
17.9
|
%
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
Total
shipments
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/ak-steel-reports-fourth-quarter-and-full-year-2014-financial-results-300025944.html
SOURCE AK Steel