 | CONTACTS: Arista Joyner Manager Corporate Communications T - (412) 433-3994 E - AEjoyner@uss.com | Kevin Lewis Vice President Finance T - (412) 433-6935 E - KLewis@uss.com | NEWS RELEASE | ||||||||||||||
FOR IMMEDIATE RELEASE:
U. S. Steel Delivering on Strategic Commitments; Reports Solid Fourth Quarter and Second-Best Earnings in 2022
•Fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share; full-year 2022 net earnings of $2.52 billion, or $9.16 per diluted share.
•Fourth quarter 2022 adjusted net earnings of $226 million, or $0.87 per diluted share; full-year 2022 adjusted net earnings of $2.74 billion, or $9.95 per diluted share.
•Fourth quarter 2022 adjusted EBITDA of $431 million; full-year 2022 adjusted EBITDA of $4.23 billion.
PITTSBURGH, February 2, 2023 – United States Steel Corporation (NYSE: X) reported fourth quarter 2022 net earnings of $174 million, or $0.68 per diluted share. Adjusted net earnings was $226 million, or $0.87 per diluted share and excluded the impact of a one-time signing bonus related to the United Steelworkers labor agreement and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to fourth quarter 2021 net earnings of $1.07 billion, or $3.75 per diluted share. Adjusted net earnings for the fourth quarter 2021 was $1.43 billion, or $5.01 per diluted share.
Full-year 2022 net earnings was $2.52 billion, or $9.16 per diluted share. Adjusted net earnings was $2.74 billion, or $9.95 per diluted share and excluded the impact of asset impairments related to the permanent idling of the iron making process at the Company's Great Lakes Works, the impact of a one-time signing bonus related to the United Steelworkers labor agreement, and other one-time items detailed in the reconciliation of adjusted net earnings table. This compares to full-year 2021 net earnings of $4.17 billion, or $14.88 per diluted share. Adjusted net earnings for 2021 were $4.40 billion, or $15.69 per diluted share.
©2023 U. S. Steel. All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
Commenting on the Company's performance, U. S. Steel President and Chief Executive Officer David B. Burritt said, “2022 was another exceptional year for U. S. Steel, marking our second-best financial performance in the Company’s history. Our fourth quarter results exceeded our guidance expectations thanks to the combined efforts of our domestic steelmaking operations and Tubular segment. This includes positive EBITDA in December at our Mini Mill segment, reflecting improving momentum through year-end while continuing to work through higher priced raw materials purchased earlier in 2022. Each of our operating segments contributed meaningfully to 2022’s success, while delivering record safety performance and strong operational excellence, quality, and reliability for our customers.”
Burritt continued, “We are well-positioned for 2023. Our record cash and liquidity support a balanced capital allocation approach. We returned approximately $900 million to stockholders in 2022 and plan to continue rewarding stockholders in 2023 while investing in the business. We are already delivering on strategic commitments, including the Gary Works pig iron machine that was commissioned ahead of schedule and on-budget. Later this year, our non-grain oriented electrical steel line at Big River Steel will begin producing advanced steel grades to meet the growing electric vehicle demand. 2023 is a pivotal year in our strategy and we look forward to demonstrating continued progress towards our Best for All future.”
| Earnings Highlights | ||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||
| (Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | ||||||||||
| Net Sales | $ | 4,338 | $ | 5,622 | $ | 21,065 | $ | 20,275 | ||||||
| Segment earnings (loss) before interest and income taxes | ||||||||||||||
| Flat-Rolled | 159 | 890 | 1,951 | 2,630 | ||||||||||
Mini Mill (a) | (68) | 366 | 481 | 1,206 | ||||||||||
| U. S. Steel Europe | (68) | 269 | 444 | 975 | ||||||||||
| Tubular | 205 | 30 | 544 | 1 | ||||||||||
| Other | 6 | (31) | 22 | (11) | ||||||||||
| Total segment earnings before interest and income taxes | $ | 234 | $ | 1,524 | $ | 3,442 | $ | 4,801 | ||||||
| Other items not allocated to segments | (60) | (379) | (282) | 145 | ||||||||||
| Earnings before interest and income taxes | $ | 174 | $ | 1,145 | $ | 3,160 | $ | 4,946 | ||||||
| Net interest and other financial (benefits) costs | (51) | 130 | (99) | 602 | ||||||||||
| Income tax expense (benefit) | 51 | (54) | 735 | 170 | ||||||||||
| Net earnings | $ | 174 | $ | 1,069 | $ | 2,524 | $ | 4,174 | ||||||
| Earnings per diluted share | $ | 0.68 | $ | 3.75 | $ | 9.16 | $ | 14.88 | ||||||
Adjusted net earnings (b) | $ | 226 | $ | 1,430 | $ | 2,742 | $ | 4,400 | ||||||
Adjusted net earnings per diluted share (b) | $ | 0.87 | $ | 5.01 | $ | 9.95 | $ | 15.69 | ||||||
Adjusted earnings before interest, income taxes, depreciation and amortization (EBITDA) (b) | $ | 431 | $ | 1,728 | $ | 4,233 | $ | 5,592 | ||||||
(a) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel. | ||||||||||||||
(b) Please refer to the non-GAAP Financial Measures section of this document for the reconciliation of these amounts. | ||||||||||||||
*****
The Company will conduct a conference call on the fourth quarter and full-year 2022 earnings on Friday, February 3, 2023, at 8:30 a.m. Eastern. To listen to the webcast of the conference call and to access the Company's slide presentation, visit the U. S. Steel website, www.ussteel.com, and click on the “Investors” section. Replay will be available on the website after 10:30 a.m. on February 3, 2023.
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | ||||||||||||||||||||
| PRELIMINARY SUPPLEMENTAL STATISTICS (Unaudited) | ||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||||||
| OPERATING STATISTICS | ||||||||||||||||||||
Average realized price: ($/net ton unless otherwise noted) (a) | ||||||||||||||||||||
| Flat-Rolled | 1,086 | 1,432 | 1,261 | 1,172 | ||||||||||||||||
Mini Mill (b) | 786 | 1,490 | 1,134 | 1,314 | ||||||||||||||||
| U. S. Steel Europe | 957 | 1,075 | 1,090 | 966 | ||||||||||||||||
| U. S. Steel Europe (€/net ton) | 942 | 940 | 1,029 | 816 | ||||||||||||||||
| Tubular | 3,616 | 1,968 | 2,978 | 1,696 | ||||||||||||||||
Steel shipments (thousands of net tons): (a) | ||||||||||||||||||||
| Flat-Rolled | 1,885 | 2,032 | 8,373 | 9,018 | ||||||||||||||||
Mini Mill (b) | 636 | 559 | 2,287 | 2,230 | ||||||||||||||||
| U. S. Steel Europe | 715 | 1,028 | 3,759 | 4,302 | ||||||||||||||||
| Tubular | 133 | 127 | 523 | 444 | ||||||||||||||||
| Total Steel Shipments | 3,369 | 3,746 | 14,942 | 15,994 | ||||||||||||||||
| Intersegment steel (unless otherwise noted) shipments (thousands of net tons): | ||||||||||||||||||||
| Flat-Rolled to USSE (iron ore pellets and fines and coal) | — | — | 144 | 439 | ||||||||||||||||
| Flat-Rolled to USSE | — | — | 30 | — | ||||||||||||||||
| Flat-Rolled to Mini Mill | — | — | 30 | — | ||||||||||||||||
Mini Mill (b) to Flat-Rolled | 36 | 88 | 288 | 388 | ||||||||||||||||
| Raw steel production (thousands of net tons): | ||||||||||||||||||||
| Flat-Rolled | 1,952 | 2,181 | 8,846 | 9,881 | ||||||||||||||||
Mini Mill (b) | 683 | 681 | 2,650 | 2,688 | ||||||||||||||||
| U. S. Steel Europe | 589 | 1,181 | 3,839 | 4,931 | ||||||||||||||||
| Tubular | 137 | 140 | 634 | 464 | ||||||||||||||||
Raw steel capability utilization: (c) | ||||||||||||||||||||
| Flat-Rolled | 59 | % | 51 | % | 67 | % | 58 | % | ||||||||||||
Mini Mill (b) | 82 | % | 82 | % | 80 | % | 81 | % | ||||||||||||
| U. S. Steel Europe | 47 | % | 94 | % | 77 | % | 99 | % | ||||||||||||
| Tubular | 60 | % | 62 | % | 70 | % | 52 | % | ||||||||||||
| CAPITAL EXPENDITURES (dollars in millions) | ||||||||||||||||||||
| Flat-Rolled | 138 | 150 | 503 | 422 | ||||||||||||||||
Mini Mill (b) | 449 | 229 | 1,159 | 331 | ||||||||||||||||
| U. S. Steel Europe | 37 | 18 | 90 | 57 | ||||||||||||||||
| Tubular | 7 | 5 | 17 | 51 | ||||||||||||||||
| Other Businesses | — | 1 | — | 2 | ||||||||||||||||
| Total | $ | 631 | $ | 403 | $ | 1,769 | $ | 863 | ||||||||||||
(a) Excludes intersegment shipments. | ||||||||||||||||||||
(b) The Mini Mill segment was added after January 15, 2021 with the purchase of the remaining equity interest in Big River Steel. | ||||||||||||||||||||
(c) 2022 based on annual raw steel production capability of 13.2 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular. 2021 based on annual raw steel production capability of 17.0 million net tons for Flat-Rolled, 3.3 million for Mini Mill, 5.0 million net tons for U. S. Steel Europe and 0.9 million for Tubular. | ||||||||||||||||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | |||||||||||||||||
| CONDENSED STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||
| (Dollars in millions, except per share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net Sales | $ | 4,338 | $ | 5,622 | $ | 21,065 | $ | 20,275 | |||||||||
| Operating expenses (income): | |||||||||||||||||
| Cost of sales | 3,934 | 3,900 | 16,777 | 14,533 | |||||||||||||
| Selling, general and administrative expenses | 98 | 110 | 422 | 426 | |||||||||||||
| Depreciation, depletion and amortization | 197 | 204 | 791 | 791 | |||||||||||||
| Earnings from investees | (41) | (64) | (243) | (170) | |||||||||||||
| Gain on sale of Transtar | — | — | — | (506) | |||||||||||||
| Asset impairment charges | 6 | 245 | 163 | 273 | |||||||||||||
| Restructuring and other charges | (9) | 91 | 48 | 128 | |||||||||||||
| Gain on equity investee transactions | (6) | — | (6) | (111) | |||||||||||||
| Net (gains) losses on sale of assets | (2) | 1 | (12) | (7) | |||||||||||||
| Other gains, net | (13) | (10) | (35) | (28) | |||||||||||||
| Total operating expenses | 4,164 | 4,477 | 17,905 | 15,329 | |||||||||||||
| Earnings before interest and income taxes | 174 | 1,145 | 3,160 | 4,946 | |||||||||||||
| Net interest and other financial (benefits) costs | (51) | 130 | (99) | 602 | |||||||||||||
| Earnings before income taxes | 225 | 1,015 | 3,259 | 4,344 | |||||||||||||
| Income tax expense (benefit) | 51 | (54) | 735 | 170 | |||||||||||||
| Net earnings | 174 | 1,069 | 2,524 | 4,174 | |||||||||||||
| Less: Net earnings attributable to noncontrolling interests | — | — | — | — | |||||||||||||
| Net earnings attributable to United States Steel Corporation | $ | 174 | $ | 1,069 | $ | 2,524 | $ | 4,174 | |||||||||
| COMMON STOCK DATA: | |||||||||||||||||
| Net earnings per share attributable to United States Steel Corporation Stockholders | |||||||||||||||||
| Basic | $ | 0.75 | $ | 3.97 | $ | 10.22 | $ | 15.77 | |||||||||
| Diluted | $ | 0.68 | $ | 3.75 | $ | 9.16 | $ | 14.88 | |||||||||
| Weighted average shares, in thousands | |||||||||||||||||
| Basic | 232,558 | 268,995 | 246,986 | 264,667 | |||||||||||||
| Diluted | 262,703 | 285,321 | 276,963 | 280,444 | |||||||||||||
| Dividends paid per common share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.08 | |||||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | ||||||||||||||
| CONDENSED CASH FLOW STATEMENT (Unaudited) | ||||||||||||||
| Twelve Months Ended December 31, | ||||||||||||||
| (Dollars in millions) | 2022 | 2021 | ||||||||||||
| Increase (decrease) in cash, cash equivalents and restricted cash | ||||||||||||||
| Operating activities: | ||||||||||||||
| Net earnings | $ | 2,524 | $ | 4,174 | ||||||||||
| Depreciation, depletion and amortization | 791 | 791 | ||||||||||||
| Gain on sale of Transtar | — | (506) | ||||||||||||
| Asset impairment charges | 163 | 273 | ||||||||||||
| Gain on equity investee transactions | (6) | (111) | ||||||||||||
| Restructuring and other charges | 48 | 128 | ||||||||||||
| Loss on debt extinguishment | — | 292 | ||||||||||||
| Pensions and other postretirement benefits | (213) | 15 | ||||||||||||
| Deferred income taxes | 501 | (52) | ||||||||||||
| Net gain on sale of assets | (12) | (7) | ||||||||||||
| Working capital changes | (32) | (849) | ||||||||||||
| Income taxes receivable/payable | (15) | 161 | ||||||||||||
| Other operating activities | (244) | (219) | ||||||||||||
| Net cash provided by operating activities | 3,505 | 4,090 | ||||||||||||
| Investing activities: | ||||||||||||||
| Capital expenditures | (1,769) | (863) | ||||||||||||
| Acquisition of Big River Steel, net of cash acquired | — | (625) | ||||||||||||
| Proceeds from sale of Transtar | — | 627 | ||||||||||||
| Proceeds from cost reimbursement government grants | 54 | — | ||||||||||||
| Proceeds from sale of assets | 32 | 26 | ||||||||||||
| Proceeds from sale of ownership interest in equity investees | 12 | — | ||||||||||||
| Other investing activities | (8) | (5) | ||||||||||||
| Net cash used in investing activities | (1,679) | (840) | ||||||||||||
| Financing activities: | ||||||||||||||
| Repayment of short-term debt | — | (180) | ||||||||||||
| Revolving credit facilities - borrowings, net of financing costs | — | 50 | ||||||||||||
| Revolving credit facilities - repayments | — | (911) | ||||||||||||
| Issuance of long-term debt, net of financing costs | 343 | 864 | ||||||||||||
| Repayment of long-term debt | (382) | (3,183) | ||||||||||||
| Net proceeds from public offering of common stock | — | 790 | ||||||||||||
| Common stock repurchased | (849) | (150) | ||||||||||||
| Proceeds from government incentives | 82 | — | ||||||||||||
| Other financing activities | (62) | (27) | ||||||||||||
| Net cash used in financing activities | (868) | (2,747) | ||||||||||||
| Effect of exchange rate changes on cash | (19) | (21) | ||||||||||||
| Net increase in cash, cash equivalents and restricted cash | 939 | 482 | ||||||||||||
| Cash, cash equivalents and restricted cash at beginning of year | 2,600 | 2,118 | ||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 3,539 | $ | 2,600 | ||||||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | ||||||||||||||
| CONDENSED BALANCE SHEET (Unaudited) | ||||||||||||||
| December 31, | December 31, | |||||||||||||
| (Dollars in millions) | 2022 | 2021 | ||||||||||||
| Cash and cash equivalents | $ | 3,504 | $ | 2,522 | ||||||||||
| Receivables, net | 1,635 | 2,089 | ||||||||||||
| Inventories | 2,359 | 2,210 | ||||||||||||
| Other current assets | 368 | 331 | ||||||||||||
| Total current assets | 7,866 | 7,152 | ||||||||||||
| Investments and long-term receivables, net | 840 | 694 | ||||||||||||
| Operating lease assets | 146 | 185 | ||||||||||||
| Property, plant and equipment, net | 8,492 | 7,254 | ||||||||||||
| Intangible, net | 478 | 519 | ||||||||||||
| Goodwill | 920 | 920 | ||||||||||||
| Other noncurrent assets | 716 | 1,092 | ||||||||||||
| Total assets | $ | 19,458 | $ | 17,816 | ||||||||||
| Accounts payable and other accrued liabilities | 3,016 | 2,908 | ||||||||||||
| Payroll and benefits payable | 493 | 425 | ||||||||||||
| Short-term debt and current maturities of long-term debt | 63 | 28 | ||||||||||||
| Other current liabilities | 387 | 491 | ||||||||||||
| Total current liabilities | 3,959 | 3,852 | ||||||||||||
| Noncurrent operating lease liabilities | 105 | 136 | ||||||||||||
| Long-term debt, less unamortized discount and debt issuance costs | 3,914 | 3,863 | ||||||||||||
| Employee benefits | 209 | 235 | ||||||||||||
| Other long-term liabilities | 960 | 627 | ||||||||||||
| United States Steel Corporation stockholders' equity | 10,218 | 9,010 | ||||||||||||
| Noncontrolling interests | 93 | 93 | ||||||||||||
| Total liabilities and stockholders' equity | $ | 19,458 | $ | 17,816 | ||||||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | |||||||||||||||||||||||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||||||||||
| RECONCILIATION OF ADJUSTED NET EARNINGS | |||||||||||||||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||||||||
| (in millions of dollars) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||
| Net earnings and diluted net earnings per share attributable to United States Steel Corporation, as reported | $ | 174 | $ | 0.68 | $ | 1,069 | $ | 3.75 | $ | 2,524 | $ | 9.16 | $ | 4,174 | $ | 14.88 | |||||||||||||
| Restructuring and other charges | (9) | 91 | 48 | 128 | |||||||||||||||||||||||||
| Asset impairment charges | 6 | 245 | 163 | 273 | |||||||||||||||||||||||||
United Steelworkers labor agreement signing bonus and related costs (a) | 67 | — | 64 | — | |||||||||||||||||||||||||
| (Gains) losses on assets sold and previously held investments | (6) | 1 | (6) | (118) | |||||||||||||||||||||||||
| Gain on sale of Transtar | — | — | — | (506) | |||||||||||||||||||||||||
| Environmental remediation charges | — | 43 | — | 43 | |||||||||||||||||||||||||
| Debt extinguishment | — | 10 | (2) | 290 | |||||||||||||||||||||||||
| Pension de-risking | (3) | 93 | (3) | 93 | |||||||||||||||||||||||||
| Other charges, net | 13 | (1) | 24 | 35 | |||||||||||||||||||||||||
| Adjusted net earnings before tax effecting special items | 242 | 1,551 | 2,812 | 4,412 | |||||||||||||||||||||||||
Tax impact of adjusted items (b) | (16) | (121) | (70) | (12) | |||||||||||||||||||||||||
Adjusted net earnings and diluted net earnings per share attributable to United States Steel Corporation (c) | $ | 226 | $ | 0.87 | $ | 1,430 | $ | 5.01 | $ | 2,742 | $ | 9.95 | $ | 4,400 | $ | 15.69 | |||||||||||||
| Weighted average diluted ordinary shares outstanding (in millions) | 262.7 | 285.3 | 277.0 | 280.4 | |||||||||||||||||||||||||
(a) The 2022 Labor Agreements include retroactive wage increases. A charge of $3 million pertaining to wages for the month of September 2022 was recognized during the three months ended December 31, 2022. This charge is included as an adjustment to net earnings for the three months ended December 31, 2022, however this amount is not included as an adjustment to net earnings for the year ended December 31, 2022. | |||||||||||||||||||||||||||||
(b) The tax impact of adjusted items is calculated using a blended tax rate of 24% for U.S. domestic items and a tax rate of 21% for items pertaining to USSE. | |||||||||||||||||||||||||||||
(c) The calculation of adjusted diluted net earnings per share includes an increase to net earnings for interest expense pertaining to the outstanding convertible notes as a result of the adoption of ASU 2020-06 in January 2022. This increase was $4 million for the three months ended December 31, 2022 and $13 million for the year ended December 31, 2022. | |||||||||||||||||||||||||||||
| Note: The reported net earnings attributable to U. S. Steel for the three and twelve months ended December 31, 2021 and for the twelve months ended December 31, 2022 includes income tax benefits of $513 million, $633 million and $7 million, respectively, from the reversals of net valuation allowances. These items were presented as adjustments to arrive at Adjusted net earnings attributable to U. S. Steel in prior period presentations. The reconciliations for the three and twelve months ended December 31, 2021 presented above have been recast to reflect the removal of these adjustments in accordance with Securities and Exchange Commission guidance. | |||||||||||||||||||||||||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
| UNITED STATES STEEL CORPORATION | |||||||||||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||||
| RECONCILIATION OF EBITDA AND ADJUSTED EBITDA | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| (Dollars in millions) | 2022 | 2021 | 2022 | 2021 | |||||||||||||
| Net earnings attributable to United States Steel Corporation | $ | 174 | $ | 1,069 | $ | 2,524 | $ | 4,174 | |||||||||
| Income tax expense (benefit) | 51 | (54) | 735 | 170 | |||||||||||||
| Net interest and other financial (benefits) costs | (51) | 130 | (99) | 602 | |||||||||||||
| Depreciation, depletion and amortization expense | 197 | 204 | 791 | 791 | |||||||||||||
| EBITDA | 371 | 1,349 | 3,951 | 5,737 | |||||||||||||
| Restructuring and other charges | (9) | 91 | 48 | 128 | |||||||||||||
| Asset impairment charges | 6 | 245 | 163 | 273 | |||||||||||||
United Steelworkers labor agreement signing bonus and related costs (a) | 67 | — | 64 | — | |||||||||||||
| (Gains) losses on assets sold and previously held investments | (6) | 1 | (6) | (118) | |||||||||||||
| Gain on sale of Transtar | — | — | — | (506) | |||||||||||||
| Environmental remediation charges | — | 43 | — | 43 | |||||||||||||
| Other charges, net | 2 | (1) | 13 | 35 | |||||||||||||
| Adjusted EBITDA | $ | 431 | $ | 1,728 | $ | 4,233 | $ | 5,592 | |||||||||
(a) The 2022 Labor Agreements include retroactive wage increases. A charge of $3 million pertaining to wages for the month of September 2022 was recognized during the three months ended December 31, 2022. This charge is included as an adjustment to net earnings for the three months ended December 31, 2022, however this amount is not included as an adjustment to net earnings for the year ended December 31, 2022. | |||||||||||||||||
| UNITED STATES STEEL CORPORATION | ||||||||
| NON-GAAP FINANCIAL MEASURES | ||||||||
| RECONCILIATION OF FREE CASH FLOW | ||||||||
| Year Ended December 31, | ||||||||
| (Dollars in millions) | 2022 | 2021 | ||||||
| Net cash provided by operating activities | $ | 3,505 | $ | 4,090 | ||||
| Net cash used in investing activities | (1,679) | (840) | ||||||
| Cash used in dividends paid | (48) | (23) | ||||||
| Free cash flow | $ | 1,778 | $ | 3,227 | ||||
| UNITED STATES STEEL CORPORATION | |||||||||||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||||
| RECONCILIATION OF PAST TWELVE MONTHS OF FREE CASH FLOW | |||||||||||||||||
| 1st | 2nd | 3nd | 4th | ||||||||||||||
| Quarter | Quarter | Quarter | Quarter | Total of the | |||||||||||||
| (Dollars in millions) | 2022 | 2022 | 2022 | 2022 | Four Quarters | ||||||||||||
| Net cash provided by operating activities | $ | 771 | $ | 905 | $ | 1,074 | $ | 755 | $ | 3,505 | |||||||
| Net cash used in investing activities | (352) | (250) | (463) | (614) | (1,679) | ||||||||||||
| Cash used in dividends paid | (13) | (13) | (12) | (10) | (48) | ||||||||||||
| Free cash flow | $ | 406 | $ | 642 | $ | 599 | $ | 131 | $ | 1,778 | |||||||
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
We present adjusted net earnings, adjusted net earnings per diluted share, earnings before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA, which are non-GAAP measures, as additional measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings, is a relevant indicator of trends relating to our operating performance and provides management and investors with additional information for comparison of our operating results to the operating results of other companies.
Adjusted net earnings and adjusted net earnings per diluted share are non-GAAP measures that exclude the effects of items that include: restructuring and other charges, asset impairment charges, United Steelworkers labor agreement signing bonus and related costs, (gains) losses on asset sold and previously held investments, gain on sale of Transtar, environmental remediation charges, debt extinguishment, pension de-risking, tax impact of adjusted items, and other charges, net (Adjustment Items). Adjusted EBITDA is also a non-GAAP measure that excludes the effects of certain Adjustment Items. We present adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA to enhance the understanding of our ongoing operating performance and established trends affecting our core operations by excluding the effects of events that can obscure underlying trends. U. S. Steel's management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA as alternative measures of operating performance and not alternative measures of the Company's liquidity. U. S. Steel’s management considers adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA useful to investors by facilitating a comparison of our operating performance to the operating performance of our competitors. Additionally, the presentation of adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA provides insight into management’s view and assessment of the Company’s ongoing operating performance because management does not consider the Adjustment Items when evaluating the Company’s financial performance. Adjusted net earnings, adjusted net earnings per diluted share and adjusted EBITDA should not be considered a substitute for net earnings, earnings per diluted share or other financial measures as computed in accordance with U.S. GAAP and is not necessarily comparable to similarly titled measures used by other companies.
We also present free cash flow, a non-GAAP measure of cash generated from operations, after any investing activity and dividends paid to stockholders. We believe that free cash flow provides further insight into the Company's overall utilization of cash. A condensed consolidated statement of operations (unaudited), condensed consolidated cash flow statement (unaudited), condensed consolidated balance sheet (unaudited) and preliminary supplemental statistics (unaudited) for U. S. Steel are attached.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This release contains information that may constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. We intend the forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in those sections. Generally, we have identified such forward-looking statements by using the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “target,” “forecast,” “aim,” “should,” “plan,” “goal,” “future,” “will,” “may,” and similar expressions or by using future dates in connection with any discussion of, among other things, the construction or operation of new or existing facilities or operating capabilities, the timing, size and form of share repurchase transactions, operating or financial performance, trends, events or developments that we expect or anticipate will occur in the future, statements relating to volume changes, share of sales and earnings per share changes, anticipated cost savings, potential capital and operational cash improvements, changes in the global economic environment, including supply and demand conditions, inflation, interest rates, supply chain disruptions and changes in prices for our products, international trade duties and other aspects of international trade policy, statements regarding our future strategies, products and innovations, statements regarding our greenhouse gas emissions reduction goals, statements regarding existing or new regulations and statements expressing general views about future operating results. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. Forward-
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation
News Release
looking statements are not historical facts, but instead represent only the Company’s beliefs regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company’s control. It is possible that the Company’s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. Management believes that these forward-looking statements are reasonable as of the time made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. Our Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our Company's historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, the risks and uncertainties described in “Item 1A. Risk Factors” in our Annual report on Form 10-K for the year ended December 31, 2021 and those described from time to time in our future reports filed with the Securities and Exchange Commission.
References to “U. S. Steel,” “the Company,” “we,” “us,” and “our” refer to United States Steel Corporation and its consolidated subsidiaries, references to “Big River Steel” refer to Big River Steel Holdings LLC and its direct and indirect subsidiaries unless otherwise indicated by the context and references to “Transtar” refer to Transtar LLC and its direct and indirect subsidiaries unless otherwise indicated by context.
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Founded in 1901, United States Steel Corporation is a leading steel producer. With an unwavering focus on safety, the Company’s customer-centric Best for All® strategy is advancing a more secure, sustainable future for U. S. Steel and its stakeholders. With a renewed emphasis on innovation, U. S. Steel serves the automotive, construction, appliance, energy, containers, and packaging industries with high value-added steel products such as U. S. Steel’s proprietary XG3® advanced high-strength steel. The Company also maintains competitively advantaged iron ore production and has an annual raw steelmaking capability of 22.4 million net tons. U. S. Steel is headquartered in Pittsburgh, Pennsylvania, with world-class operations across the United States and in Central Europe. For more information, please visit www.ussteel.com.
©2023 U. S. Steel All Rights Reserved www.ussteel.com United States Steel Corporation