Exhibit 99.1
Press Release | 
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February 3, 2010 |
7575 West Jefferson Blvd |
Fort Wayne, IN 46804 |
260.459.3553 Phone |
260.969.3590 Fax |
www.steeldynamics.com |
Steel Dynamics Reports Fourth Quarter and 2009 Results
FORT WAYNE, INDIANA, February 3, 2010— Steel Dynamics, Inc. (NASDAQ-GS: STLD) today announced net income of $26.7 million for the fourth quarter of 2009, or $0.12 per diluted share, and a net loss of $8.2 million, or $0.04 per diluted share for the fiscal year ended December 31, 2009. By comparison, fourth quarter 2008 showed a loss of $82.7 million and full-year 2008 net income was $463.4 million. Net sales for the fourth quarter of 2009 were $1.2 billion, 3 percent lower than the fourth quarter of 2008. Full-year 2009 net sales were $4.0 billion, 51 percent lower than net sales of $8.1 billion in 2008.
“Our fourth quarter results were within the range we bracketed in December,” said Keith Busse, Chairman and CEO. “Our steel operations met our expectations in the fourth quarter, achieving an operating profit of $108.3 million. This was the result of the continued outstanding operating performance at our mills, benefiting in particular from continued strong sales of flat-rolled and engineered-bar steels. OmniSource generated an operating profit of $4.6 million in the quarter, with weaker results due to lower margins and reduced volumes. Continued losses in the steel fabrication segment and costs related to the start-up of Mesabi Nugget also detracted from fourth quarter’s results.”
Steel shipments for the fourth quarter were 1.2 million tons, 6 percent lower than the third quarter of 2009, but 24 percent higher than the fourth quarter of 2008. The average steel selling price for the fourth quarter increased $48 per ton from $627 in the third quarter to $675 per ton, which compares to $913 per ton in the fourth quarter of 2008. The average ferrous scrap cost per ton charged in the fourth quarter increased $29 compared to the third quarter.
Steel shipments for the year 2009 were 4.0 million tons, 28 percent lower than the 5.6 million tons shipped in 2008. Year-to-year average selling price per ton decreased $322, from $973 in 2008 to $651 in 2009. SDI’s average ferrous scrap cost per ton charged in 2009 was $232 compared to $421 in 2008.
In metals recycling, OmniSource’s ferrous shipments for the fourth quarter were 1.2 million tons, 7 percent lower than the third quarter of 2009 but 34 percent higher than the fourth quarter of 2008. In the fourth quarter, OmniSource provided 49 percent of the ferrous scrap purchased by SDI’s steel mills. Fourth quarter non-ferrous shipments were 202.8 million pounds, 7 percent lower than the third quarter of 2009, but 14 percent higher than the fourth quarter of 2008.
For the year 2009, total ferrous scrap shipments were 4.1 million tons, 27 percent lower than shipments of 5.6 million tons in 2008. In 2009, 47 percent of SDI’s ferrous scrap requirements were supplied by OmniSource. Non-ferrous shipments in 2009 were 780.1 million pounds compared to 911.8 million pounds in 2008, 14 percent lower. It should be noted that 2008 ferrous and non-ferrous figures exclude shipments by Recycle South prior to the June 2008 acquisition.
“Looking back at 2009, and in light of the extraordinary steel-market and economic conditions the country faced throughout the year, the company’s performance was reasonably good,” Busse stated. “With the exception of operations depending on non-residential construction, our business improved as the year progressed. We ended the year on a sound footing, and I am very proud of our employees throughout the company. All have focused on efficient operations and cost control, as well as attention to product quality and customer service. 2009 was a tough year, but we came through this extraordinary period much better prepared.
“As we enter the new year, we have seen a slight improvement in business conditions. Demand for our flat-rolled, engineered bar, and merchant bar steel products, as well as recycled metals, remains robust; but demand for structural steel and building components is still very weak. Our flat-roll steel business, inclusive of The Techs, continues to run at a high rate of capacity utilization. OmniSource continues to operate at about 75 percent of capacity. Our first-quarter outlook is for stronger profitability in both our steel operations and in metals recycling. We expect to provide quantitative guidance later in the quarter.
“There are numerous signs of recovery in the U.S. economy. Service center and OEM steel inventories are at historically low levels. These are conditions when rapid changes traditionally occur in the steel marketplace. As always, with our flexible operating culture and top-notch production facilities, Steel Dynamics is in a very good position to take advantage of these market opportunities as they develop,” Busse said.
Operating Segment Information
The following highlights our fourth quarter and full-year 2009 results for each of SDI’s three primary operating segments. These operating results exclude profit-sharing costs and amortization related to each of the respective segment’s intangible assets.
Steel Operations. Steel operations represented 64 percent of the company’s fourth quarter external net sales and 63 percent of the company’s external net sales for the full year 2009. This segment includes five electric-arc-furnace (EAF) steel mills and related steel finishing and processing facilities, including The Techs. In addition to flat-rolled steel, the company’s steel operations produce structural steel, merchant bars, special-bar-quality steel, rail, and other specialty shapes.
Fourth quarter 2009 steel operations net sales were $790.0 million on shipments of 1.2 million tons (including intra-company shipments). Steel operations net sales for the year 2009 were $2.6 billion on shipments of 4.0 million tons (including intra-company shipments). Based on tons shipped for the full year 2009, including steel shipments made by The Techs, flat-rolled products accounted for 67 percent of 2009 steel segment shipments. Structural steel and rail shipments were 12 percent, merchant bars were 9 percent, engineered bars were 7 percent and the remaining 5 percent were shipments by our Steel of West Virginia subsidiary. Operating income for the steel segment in the fourth quarter was $108.3 million, or $93 per ton shipped, compared to $106 per ton in the third quarter. Operating income for the year was $209.2 million, or $52 per ton shipped.
The fourth quarter’s average selling price per ton for steel operations was $675, an increase of $48 per ton from $627 in the third quarter of 2009, but a decrease of $238 per ton from the year-ago quarter. The average ferrous scrap cost per net ton charged increased by $29 compared to the third quarter and was $78 lower than the fourth quarter of 2008. For the year 2009, the average selling price per ton was $651, a decrease of $322 from 2008. The average scrap cost per ton in 2009 decreased $189 from 2008.
Metals Recycling and Ferrous Resources. This segment includes ferrous and non-ferrous metals processing and trading by OmniSource Corporation and SDI’s Iron Dynamics scrap-substitute operation, which produces pig iron for use by the Flat Roll Division. The segment also includes expenses related to the Mesabi Nugget project, which is currently in a start-up mode. The segment’s net sales for the fourth quarter were $521.6 million (including intra-company sales to the company’s steel operations), which represents 32 percent of SDI’s fourth quarter external net sales. For the full year 2009, the segment’s net sales were $1.7 billion (including intra-company sales to the company’s steel operations), which represents 31 percent of the company’s external net sales. The operating loss in the fourth quarter for this segment was $2.5 million and operating income for the year 2009 was $35.2 million.
OmniSource’s operating income for the fourth quarter was $4.6 million and for the year 2009 was $57.5 million. Total ferrous shipments in the fourth quarter, including shipments to SDI’s steel operations, were 1.2 million tons and non-ferrous metals shipments were 202.8 million pounds. During the fourth quarter, the company’s metals recycling operations supplied 502,000 tons of ferrous scrap to SDI’s steel operations, or approximately 49 percent of the tonnage of ferrous scrap purchased by our mills during the quarter. For the year 2009, metals recycling operations supplied 1.6 million tons of ferrous scrap to SDI’s steel operations, or approximately 47 percent of the tonnage of ferrous scrap purchased by our mills.
Steel Fabrication Operations. Steel fabrication operations includes New Millennium Building Systems, which fabricates steel joists, trusses, and decking used in the construction of non-residential buildings. Fourth quarter net sales were $27.2 million, or 2 percent of SDI’s fourth quarter external net sales. Net sales for the year were $158.0 million, or 4 percent of the company’s external net sales for 2009. The operating loss for the fourth quarter for this segment was $6.2 million. For the year, the operating loss was $6.1 million, or $42 per ton shipped. Fourth quarter shipments totaled 30,000 tons at an average selling price of $906 per ton. For the year 2009, shipments totaled 145,000 tons at an average selling price of $1,088.
Forward-Looking Statements
This press release contains some predictive statements about future events, including statements related to conditions in the steel and scrap metals markets, Steel Dynamics’ revenue, 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. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others: the effects of prolonged or deepening recession on industrial demand; general or specific sector (i.e., automotive, consumer appliance or construction) economic conditions affecting steel consumption; the impact of price competition, whether domestic or the result of foreign imports; difficulties in integrating acquired businesses; risks and uncertainties involving new products or new technologies; changes in the availability or cost of steel scrap or substitute materials; increases in energy costs; occurrence of unanticipated equipment failures and plant outages; labor unrest; and the effect of the elements on production or consumption.
More specifically, we refer you to SDI’s 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, available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com.
Forward-looking or predictive statements we make are based upon information and assumptions, concerning our businesses and the environments in which they operate, which we consider reasonable as of the date on which these statements are made. Due to the foregoing risks and uncertainties, however, as well as matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this press release. We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Conference Call and Webcast
On Thursday, February 4, 2010, at 10:00 a.m. Eastern time, Steel Dynamics will host a conference call in which management will discuss fourth quarter 2009 and full-year 2009 results. You are invited to listen to the live audio broadcast of the conference call over the Internet, accessible from the Steel Dynamics Web site: www.steeldynamics.com
Dial-in information is available on our Web site. An audio replay of the Webcast and a downloadable podcast will be available from the
SDI Web site. No telephone replay will be available.
Contact: Fred Warner, Investor Relations Manager, (260)969-3564 or fax (260)969-3590 f.warner@steeldynamics.com
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
| | Three Months Ended | | Twelve Months Ended | | Three Months Ended | |
| | December 31, | | December 31, | | September 30, | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | |
| | | | | | | | | | | |
Net sales | | $ | 1,179,802 | | $ | 1,210,434 | | $ | 3,958,806 | | $ | 8,080,521 | | $ | 1,172,196 | |
Costs of goods sold | | 1,025,629 | | 1,251,344 | | 3,559,730 | | 6,849,262 | | 955,503 | |
Gross profit (loss) | | 154,173 | | (40,910 | ) | 399,076 | | 1,231,259 | | 216,693 | |
| | | | | | | | | | | |
Selling, general, and administrative expenses | | 61,002 | | 53,208 | | 223,013 | | 276,560 | | 56,133 | |
Profit sharing | | 2,570 | | (9,207 | ) | 2,980 | | 66,997 | | 451 | |
Amortization of intangible assets | | 12,199 | | 10,919 | | 53,552 | | 41,334 | | 11,661 | |
Operating income (loss) | | 78,402 | | (95,830 | ) | 119,531 | | 846,368 | | 148,448 | |
| | | | | | | | | | | |
Interest expense, net capitalized interest | | 33,546 | | 41,845 | | 141,360 | | 144,574 | | 34,520 | |
Other income, net | | (1,463 | ) | (99 | ) | (3,592 | ) | (33,147 | ) | (2,167 | ) |
Income (loss) before income taxes | | 46,319 | | (137,576 | ) | (18,237 | ) | 734,941 | | 116,095 | |
| | | | | | | | | | | |
Income taxes (benefit) | | 19,773 | | (50,029 | ) | (7,218 | ) | 280,427 | | 47,365 | |
Net income (loss) | | 26,546 | | (87,547 | ) | (11,019 | ) | 454,514 | | 68,730 | |
Net loss attributable to non-controlling interests | | (105 | ) | (4,874 | ) | (2,835 | ) | (8,872 | ) | (288 | ) |
| | | | | | | | | | | |
Net income (loss) attributable to Steel Dynamics, Inc. | | $ | 26,651 | | $ | (82,673 | ) | $ | (8,184 | ) | $ | 463,386 | | $ | 69,018 | |
| | | | | | | | | | | |
Basic earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders | | $ | .12 | | $ | (.45 | ) | $ | (.04 | ) | $ | 2.45 | | $ | .32 | |
| | | | | | | | | | | |
Weighted average common shares outstanding | | 215,749 | | 181,825 | | 200,704 | | 189,140 | | 215,218 | |
| | | | | | | | | | | |
Diluted earnings (loss) per share attributable to Steel Dynamics, Inc. stockholders, including the effect of assumed conversions when dilutive | | $ | .12 | | $ | (.45 | ) | $ | (.04 | ) | $ | 2.38 | | $ | .30 | |
| | | | | | | | | | | |
Weighted average common shares and equivalents outstanding | | 234,194 | | 181,825 | | 200,704 | | 194,586 | | 234,080 | |
| | | | | | | | | | | |
Dividends declared per share | | $ | .075 | | $ | .10 | | $ | .325 | | $ | .40 | | $ | .075 | |
Steel Dynamics, Inc.
UNAUDITED SUPPLEMENTAL OPERATING INFORMATION
(dollars in thousands / volume data in actual net tons, except non-ferrous data)
| | Three Months Ended | | Twelve Months Ended | | First | | Second | | Third | |
| | December 31, | | December 31, | | Quarter | | Quarter | | Quarter | |
| | 2009 | | 2008 | | 2009 | | 2008 | | 2009 | | 2009 | | 2009 | |
Steel Operations* | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Shipments | | | | | | | | | | | | | | | |
Flat Roll Division | | 645,679 | | 361,145 | | 2,060,874 | | 2,328,805 | | 303,938 | | 454,745 | | 656,512 | |
Structural and Rail Division | | 116,695 | | 228,132 | | 477,116 | | 1,095,095 | | 129,555 | | 96,476 | | 134,390 | |
Engineered Bar Products Division | | 88,524 | | 123,449 | | 303,616 | | 566,190 | | 71,540 | | 63,124 | | 80,428 | |
Roanoke Bar Division | | 93,212 | | 94,374 | | 356,829 | | 530,452 | | 76,610 | | 89,112 | | 97,895 | |
Steel of West Virginia | | 47,118 | | 45,788 | | 202,740 | | 264,695 | | 43,124 | | 54,959 | | 57,539 | |
The Techs | | 178,580 | | 89,551 | | 644,612 | | 823,661 | | 118,359 | | 127,290 | | 220,383 | |
Combined | | 1,169,808 | | 942,439 | | 4,045,787 | | 5,608,898 | | 743,126 | | 885,706 | | 1,247,147 | |
Intra-company | | (67,667 | ) | (51,803 | ) | (251,665 | ) | (447,729 | ) | (52,012 | ) | (47,590 | ) | (84,396 | ) |
External | | 1,102,141 | | 890,636 | | 3,794,122 | | 5,161,169 | | 691,114 | | 838,116 | | 1,162,751 | |
| | | | | | | | | | | | | | | |
Production (excluding The Techs) | | 996,834 | | 760,307 | | 3,547,201 | | 4,780,083 | | 702,317 | | 757,568 | | 1,090,482 | |
| | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | |
Combined | | $ | 789,960 | | $ | 860,242 | | $ | 2,633,778 | | $ | 5,456,712 | | $ | 535,184 | | $ | 526,465 | | $ | 782,169 | |
Intra-company | | (33,882 | ) | (38,189 | ) | (122,675 | ) | (375,016 | ) | (30,142 | ) | (19,572 | ) | (39,079 | ) |
External | | $ | 756,078 | | $ | 822,053 | | $ | 2,511,103 | | $ | 5,081,696 | | $ | 505,042 | | $ | 506,893 | | $ | 743,090 | |
| | | | | | | | | | | | | | | |
Operating income (loss) before amortization of intangibles | | $ | 107,757 | | $ | 3,646 | | $ | 208,467 | | $ | 858,063 | | $ | (65,022 | ) | $ | 36,660 | | $ | 129,072 | |
Amortization of intangibles | | (2,931 | ) | (3,189 | ) | (12,242 | ) | (15,033 | ) | (3,189 | ) | (3,190 | ) | (2,932 | ) |
Operating income (loss) | | $ | 104,826 | | $ | 457 | | $ | 196,225 | | $ | 843,030 | | $ | (68,211 | ) | $ | 33,470 | | $ | 126,140 | |
| | | | | | | | | | | | | | | |
Metals Recycling and Ferrous Resources** | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Ferrous metals shipments | | | | | | | | | | | | | | | |
Combined | | 1,202,946 | | 897,922 | | 4,066,834 | | 5,553,540 | | 729,869 | | 840,199 | | 1,293,820 | |
Intra-company | | (503,138 | ) | (438,532 | ) | (1,606,754 | ) | (2,270,777 | ) | (214,753 | ) | (313,023 | ) | (575,840 | ) |
External | | 699,808 | | 459,390 | | 2,460,080 | | 3,282,763 | | 515,116 | | 527,176 | | 717,980 | |
| | | | | | | | | | | | | | | |
Non-ferrous metals shipments (thousands of pounds) | | 202,838 | | 177,246 | | 780,084 | | 911,832 | | 190,394 | | 169,784 | | 217,068 | |
| | | | | | | | | | | | | | | |
Iron Dynamics shipments | | | | | | | | | | | | | | | |
Liquid pig iron | | 40,002 | | 21,171 | | 180,627 | | 163,210 | | 41,226 | | 44,392 | | 55,007 | |
Hot briquetted iron | | 14,137 | | 27,005 | | 40,443 | | 75,409 | | 20,326 | | 1,483 | | 4,497 | |
Other | | 744 | | 3,833 | | 1,483 | | 17,769 | | 674 | | 29 | | 36 | |
Intra-company | | 54,883 | | 52,009 | | 222,553 | | 256,388 | | 62,226 | | 45,904 | | 59,540 | |
| | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | |
Combined | | $ | 521,554 | | $ | 388,859 | | $ | 1,682,133 | | 3,692,421 | | $ | 296,408 | | $ | 308,938 | | $ | 555,233 | |
Intra-company | | (143,386 | ) | (123,080 | ) | (441,979 | ) | (1,207,766 | ) | (58,702 | ) | (68,540 | ) | (171,351 | ) |
External | | $ | 378,168 | | $ | 265,779 | | $ | 1,240,154 | | $ | 2,484,655 | | $ | 237,706 | | $ | 240,398 | | $ | 383,882 | |
| | | | | | | | | | | | | | | |
Operating income (loss) before amortization of intangibles | | $ | (2,545 | ) | $ | (118,364 | ) | $ | 35,218 | | $ | 129,216 | | $ | (12,204 | ) | $ | 3,810 | | $ | 46,157 | |
Amortization of intangibles | | (8,865 | ) | (7,104 | ) | (39,927 | ) | (24,369 | ) | (11,943 | ) | (10,367 | ) | (8,752 | ) |
Operating income (loss) | | $ | (11,410 | ) | $ | (125,468 | ) | $ | (4,709 | ) | $ | 104,847 | | $ | (24,147 | ) | $ | (6,557 | ) | $ | 37,405 | |
| | | | | | | | | | | | | | | |
Steel Fabrication*** | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Shipments | | | | | | | | | | | | | | | |
Combined | | 30,066 | | 63,783 | | 145,259 | | 286,612 | | 45,278 | | 35,369 | | 34,546 | |
Intra-company | | (200 | ) | (101 | ) | (882 | ) | (969 | ) | (15 | ) | (210 | ) | (457 | ) |
External | | 29,866 | | 63,682 | | 144,377 | | 285,643 | | 45,263 | | 35,159 | | 34,089 | |
| | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | |
Combined | | $ | 27,245 | | $ | 93,195 | | $ | 158,008 | | $ | 375,532 | | $ | 60,807 | | $ | 37,026 | | $ | 32,930 | |
Intra-company | | (311 | ) | (222 | ) | (1,509 | ) | (781 | ) | (22 | ) | (556 | ) | (620 | ) |
External | | $ | 26,934 | | $ | 92,973 | | $ | 156,499 | | $ | 374,751 | | $ | 60,785 | | $ | 36,470 | | $ | 32,310 | |
| | | | | | | | | | | | | | | | | | | | | | |
Operating income (loss) before amortization of intangibles | | $ | (6,173 | ) | $ | 5,439 | | $ | (6,098 | ) | $ | 18,333 | | $ | 3,225 | | $ | 47 | | $ | (3,197 | ) |
Amortization of intangibles | | (31 | ) | (215 | ) | (258 | ) | (458 | ) | (165 | ) | (31 | ) | (31 | ) |
Operating income (loss) | | $ | (6,204 | ) | $ | 5,224 | | $ | (6,356 | ) | $ | 17,875 | | $ | 3,060 | | $ | 16 | | $ | (3,228 | ) |
* | Steel Operations include the company’s five steelmaking divisions and The Techs three galvanizing plants. |
** | Metals Recycling and Ferrous Resources Operations include OmniSource and Recycle South metals recycling operations, as well as Iron Dynamics’ (IDI) pig iron substitute production facility (all IDI shipments are consumed internally). Operating income (loss) also includes the expenses associated with the construction and start up of the company’s Mesabi Nugget facilities. |
*** | Steel Fabrication Operations include the company’s joist and deck fabrication operations. |
Steel Dynamics, Inc.
CONSOLIDATED BALANCE SHEETS
(in thousands)
| | December 31, 2009 | | December 31, 2008 | |
| | (unaudited) | | | |
Assets | | | | | |
Current assets | | | | | |
Cash and equivalents | | $ | 9,008 | | $ | 16,233 | |
Accounts receivable, net | | 426,592 | | 502,932 | |
Inventories | | 852,831 | | 1,023,235 | |
Deferred income taxes | | 21,492 | | 23,562 | |
Income taxes receivable | | 137,024 | | 86,321 | |
Other current assets | | 9,856 | | 57,632 | |
Total current assets | | 1,456,803 | | 1,709,915 | |
| | | | | |
Property, plant and equipment, net | | 2,254,050 | | 2,072,857 | |
| | | | | |
Restricted cash | | 12,595 | | 18,515 | |
| | | | | |
Intangible assets, net | | 533,510 | | 614,786 | |
| | | | | |
Goodwill | | 758,259 | | 770,438 | |
| | | | | |
Other assets | | 114,655 | | 67,066 | |
Total assets | | $ | 5,129,872 | | $ | 5,253,577 | |
| | | | | |
Liabilities and Stockholders’ Equity | | | | | |
Current liabilities | | | | | |
Accounts payable | | $ | 262,285 | | $ | 263,393 | |
Income taxes payable | | 5,664 | | 4,107 | |
Accrued expenses | | 156,570 | | 209,697 | |
Accrued profit sharing | | 2,860 | | 62,561 | |
Senior secured revolving credit facility, matures 2012 | | 167,000 | | 366,000 | |
Current maturities of long-term debt | | 1,182 | | 65,223 | |
Total current liabilities | | 595,561 | | 970,981 | |
| | | | | |
Long-term debt | | | | | |
Senior secured term A loan | | — | | 503,800 | |
7 3/8% senior notes, due 2012 | | 700,000 | | 700,000 | |
5.125% convertible senior notes, due 2014 | | 287,500 | | — | |
6 ¾% senior notes, due 2015 | | 500,000 | | 500,000 | |
7 ¾% senior notes, due 2016 | | 500,000 | | 500,000 | |
Other long-term debt | | 67,072 | | 15,361 | |
Total long-term debt | | 2,054,572 | | 2,219,161 | |
| | | | | |
Deferred income taxes | | 416,468 | | 365,496 | |
| | | | | |
Other liabilities | | 60,006 | | 65,626 | |
| | | | | |
Commitments and contingencies | | | | | |
| | | | | |
Stockholders’ equity | | | | | |
Common stock | | 629 | | 545 | |
Treasury stock, at cost | | (730,857 | ) | (737,319 | ) |
Additional paid-in capital | | 972,985 | | 541,686 | |
Other accumulated comprehensive loss | | — | | (1,411 | ) |
Retained earnings | | 1,745,511 | | 1,820,385 | |
Total Steel Dynamics, Inc. stockholders’ equity | | 1,988,268 | | 1,623,886 | |
Non-controlling interests | | 14,997 | | 8,427 | |
Total stockholders’ equity | | 2,003,265 | | 1,632,313 | |
Total liabilities and stockholders’ equity | | $ | 5,129,872 | | $ | 5,253,577 | |
Steel Dynamics, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31, | | December 31, | |
| | 2009 | | 2008 | | 2009 | | 2008 | |
| | | | | | | | | |
Operating activities: | | | | | | | | | |
Net income (loss) attributable to Steel Dynamics, Inc. | | $ | 26,651 | | $ | (82,673 | ) | $ | (8,184 | ) | $ | 463,386 | |
| | | | | | | | | |
Adjustments to reconcile net income (loss) attributable to Steel Dynamics, Inc. to net cash provided by operating activities: | | | | | | | | | |
Depreciation and amortization | | 54,783 | | 52,599 | | 221,426 | | 208,752 | |
Equity-based compensation | | 2,810 | | 4,302 | | 17,589 | | 14,278 | |
Deferred income taxes | | 70,763 | | 39,299 | | 92,596 | | 31,306 | |
Non-controlling interests | | (105 | ) | (4,874 | ) | (2,835 | ) | (8,872 | ) |
Changes in certain assets and liabilities: | | | | | | | | | |
Accounts receivable | | 53,805 | | 618,526 | | 72,159 | | 310,985 | |
Inventories | | (17,148 | ) | 334,458 | | 175,183 | | (18,667 | ) |
Accounts payable | | (91,623 | ) | (318,720 | ) | (8,860 | ) | (88,451 | ) |
Income taxes payable | | 584 | | (27,508 | ) | 1,611 | | (21,765 | ) |
Other working capital | | (78,007 | ) | (186,231 | ) | (115,129 | ) | (115,651 | ) |
Net cash provided by operating activities | | 22,513 | | 429,178 | | 445,556 | | 775,301 | |
| | | | | | | | | |
Investing activities: | | | | | | | | | |
Purchase of property, plant and equipment | | (86,886 | ) | (101,872 | ) | (330,052 | ) | (412,497 | ) |
Acquisition of businesses, net of cash acquired | | — | | — | | — | | (271,159 | ) |
Purchase of securities | | — | | — | | — | | (20,373 | ) |
Sale of securities | | — | | — | | — | | 32,758 | |
Investment in direct financing lease | | — | | — | | (27,967 | ) | — | |
Other investing activities | | (2,556 | ) | (138 | ) | (15,926 | ) | 2,037 | |
Net cash used in investing activities | | (89,442 | ) | (102,010 | ) | (373,945 | ) | (669,234 | ) |
| | | | | | | | | |
Financing activities: | | | | | | | | | |
Issuance of current and long-term debt | | 319,105 | | 655,000 | | 1,268,435 | | 2,845,900 | |
Repayment of current and long-term debt | | (238,891 | ) | (952,213 | ) | (1,690,557 | ) | (2,402,033 | ) |
Debt issuance costs | | — | | — | | (13,972 | ) | (7,544 | ) |
Issuance of common stock (net of expenses) and proceeds from exercise of stock options, including related tax effect | | 3,796 | | (1,061 | ) | 420,930 | | 18,422 | |
Purchase of treasury stock | | — | | (16,484 | ) | — | | (501,777 | ) |
Contribution from non-controlling investor | | — | | — | | 5,000 | | — | |
Dividends paid | | (16,167 | ) | (18,312 | ) | (68,672 | ) | (71,288 | ) |
Net cash provided by (used in) financing activities | | 67,843 | | (333,070 | ) | (78,836 | ) | (118,320 | ) |
| | | | | | | | | |
Increase (decrease) in cash and equivalents | | 914 | | (5,902 | ) | (7,225 | ) | (12,253 | ) |
Cash and equivalents at beginning of period | | 8,094 | | 22,135 | | 16,233 | | 28,486 | |
| | | | | | | | | |
Cash and equivalents at end of period | | $ | 9,008 | | $ | 16,233 | | $ | 9,008 | | $ | 16,233 | |
| | | | | | | | | |
Supplemental disclosure of cash flow information: | | | | | | | | | |
Cash paid for interest | | $ | 72,881 | | $ | 75,562 | | $ | 156,163 | | $ | 152,263 | |
Cash paid for federal and state income taxes, net of refunds | | $ | (5,851 | ) | $ | 25,655 | | $ | (59,397 | ) | $ | 341,502 | |