CMC - Earnings call transcript Q4 2018 | Commercial Metals Company

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Operator

Hello and welcome, everyone, to the Full Year and Fourth Quarter Fiscal 2018 Earnings Call for Commercial Metals Company. Today's call is being recorded. After the company's remarks, we will have a question-and-answer session and we'll have a few instructions at that time. I would like to remind all participants that during the course of this conference call, the company will make statements that provide information other than historical information and will include expectations regarding economic conditions, effects of legislation, U.S. steel import levels, U.S. in finished of the realize capital operations, benefits our for company's future the spending. demand mill of results micro future the investment activity, steel Oklahoma, company's products, operations, anticipated in construction Durant, new and our ability to are cause expectations. These and actual differ from statements those results involve similar and risks other considered forward-looking to to and may uncertainties and are speculation subject that could materially certain the conditions These and statements the beliefs company's those are are uncertainties, Form risks reflect annual to that based on including on but Risk subject current Factors company's the described report XX-K. in section latest of

CMC correct, Although statements occurrence current as law, that and expectations or future may assume date. these vary by no the assumptions, clarify required are or circumstances management's information of or statements beliefs assurance otherwise. or obligation this amend on events, these offers in these as does are connection with statements unanticipated events, of and expectations made beliefs, to be will only in actual update, materially. based new not results All Except CMC anticipated or changes to any prove

introductions, I'll are found President conference Officer fiscal the Board, company's Company, Commercial and release Unless Some Executive be Ms. will the year or opening non-GAAP can fiscal turn to of Barbara remarks, now, financial over all references references company's or otherwise, of stated or the Chief for And to quarter. call and the numbers end Chairman such year Smith. numbers measures be Metals for quarter on the presented website. on earnings reconciliations company's to made

Barbara R. Smith

open and results full highlights Mary for of the to fiscal prepared and us the Lindsey quarter. financial I year everyone morning, our information quarter will our to will more the begin year review with detail. XXXX, Good with conclude questions. for the after CMC's quarter joining of call first year cover remarks quarter fiscal outlook we will to fourth call I discussions XXXX. you. fiscal and of the And the will then for and welcome the fourth in Thank which

did of discussing like their the the serving Before CMC during did accomplished our Steel not Oklahoma and and in smooth levels a achieve for the includes the history of work best Polish recording of hard our Durant employees would I team us our in Metals fiscal a our diligence it record of customers. from only to safely, which operation. Commercial recognize safety least in our CMC. We we profitability but year, results, startup lot record our of to the allow Not XXXX, contributions great of

release morning, $X.XX $XX.X operations As sales diluted on we or announced net recession. from best performance in share, this our million, fourth reported since quarterly earnings This of continuing the XXXX $X.X of billion. quarter earnings our fiscal great per is

CMC's results $X.XX quarterly directors dividend X, on This cash XX, of our earnings This fourth of Excluding stockholders to press board update. agreement November per details on dividend. planning adjusted full operations the of release the declared described diluted our XXXX. quarterly or a of report $XX.X by $X.XX were share per on acquire record CMC announced and XXXth and common as in impact the financial same XX, will increase of Mary acquisition S.A., be will year paid XXXX. in during dividend that the consecutive noted stock November represents the costs This Further our pleased our seven-fold XXXX. continuing related October assets of Also, comparison U.S. for rebar I'm from to period a fiscal million, share. represents in of be to integration quarter Gerdau to

in markets growth at ABI markets to growth. in long-term of – the a Spending almost in continues over is for Further perform XXXX. conditions indicative the Index Architectural in in and and finished have improvements has outlook These well is trends the synchronized Billings prosper generally positive future in fixed operate. the confident regulatory coming by of increased resulted which over some trends demand contributing The continued a private in non-residential continued quarters Construction business years. XX trend positive past XX. to X% reform, and year. spending An U.S. to the which to the investment projects. for comparison August global eight confidence tax construction economy we and in cover resulted continue prior growth for in supported I'll Now, leaders forecast the

levels years apparent XXXX believe upwards estimates for consumption long product XXXX. comparison two seven the elevated throughout the being to steel to levels of the economy of being approximately during amount of remains done XX% us elevated. approximately has continues that the The GDP of grow, past gives the Consumer months XXXX design Polish revised reason in record the remains Continued to increased with to and first also period at work X.X%. the same confidence ABI calendar

to facility from from extract for Recycling this techniques, only latest shredder investment, segment returns auto material to investment shredder to We which to This operation, Now, This enhanced nonferrous also metals not I'd extract strategic on recent ferrous an provide residue. South and additional us separation nonferrous but stewardship. includes it commitment supports also some our nonferrous delivers like more previously investments. us and landfilled technology our started our environmental earlier in allows operating our new the separation allows our update downstream, year. of of Carolina

startup that most has on EBITDA completed. new Oklahoma, calls, happy all of our in activities recent mill have quarter, our to been Durant, I've sharing micro the very this been I'm the construction conference positive well. generated As gone operation and commissioning and report

third and material. rebar well customers. improved benefits production facilities has and yield rebar straight to fabrication as well In the improved the absence in been in the of the spooled The fabrication of any results as addition, party hot own include our ease-of-use due coiled spooled by twists facilities of rebar received over

fourth the we've of crew mill our Arizona process a of this for we Oklahoma the our previously Steel second to hot produce start investing to support hiring are in announced, demand producing fiscal fourth investment. micro Construction CMC micro mill, quarter during XXXX. experienced newest we are as At We our to in spooler material Mesa, expect that at our from strong and spooled ongoing spooled rebar. material is for facility

our approximately an The XXX,XXX existing into to increase merchant capacity rod fully to margin and its utilize allow investment $XX the approximately metric facility In pleased announce addition, facility investment expansion higher that the board Polish will I'm by capacity of in product. tonnes. continuous of goods million production approved wire at directors has our mill to finished

expect XXXX. We project the be our of to by fiscal completed the end

the like you Gerdau acquisition on update assets of rebar to provide Finally, an S.A. the with would I of

to satisfaction expect of approval. closing We on end subject of to conditions, the by year including and continue be acquisition regulatory to track calendar close the the

Lindsey, now close to We President have from integration and turn Vice to and operations the that Mary as Chief overview, over invested I'll Financial the upon forward significant an team With time our these Officer. effort the Senior the discussion welcoming transaction. to of the plan and employees new to look

Mary A. Lindsey

Barbara, call the you, this morning. joining good Thank and on morning everyone us to

in $X.X we $X.XX Included $XX.X fourth the Barbara reported earnings are As a a the quarter quarter or of to the million, operations loss quarter XXXX Gerdau the diluted comparison $XX.X share, million fourth XXXX, from of for of XXXX. loss diluted continuing million, of of in costs transaction. to $X.XX per of results per or mentioned, in share related after-tax fourth

these $XX.X or $X.XX costs, from operations continuing Excluding million, earnings adjusted diluted per share. were

extinguishment are seven the continuing times fourth even quarter greater that of quarter. our the of severance to and net costs XXXX when $XX.X from adding earnings over quarter from than adjusted for of Our million back XXXX, fourth operations those debt

full XXXX. reported per the XXXX, earnings million, $X.XX per comparison year to For $X.XX or in operations $XX.X $XXX.X from share or of diluted continuing of share, in million, diluted we

of are debt results net net costs, and earnings extinguishment costs million acquisition after-tax reform, I that costs whereas planning mentioned. the to As previously the related outlined tax detail included incentives in release, XXXX and our startup in operational mill severance XXXX in and more $XX.X costs, included certain results the integration impairments,

adjusted $XX million earnings versus operations diluted for $X.XX diluted these or from items, continuing were Excluding XXXX in share, per $X.XX XXXX. $XXX.X share or per million,

exclusion believe impairments. operating that data the During participants. adjusted this the comparability quarter, of performance we EBITDA EBITDA clear metric we our EBITDA to changed to made our financial business profit industry of to provides segment trends evaluate is metric only as other adjusted segments, The adjustment for the and non-cash of period-to-period of to the reporting from adjusted

EBITDA builds certain items provided of also we continuing In our measure. by addition, equity not earlier EBITDA which as non-GAAP are operations. and today, nature non-recurring compensation, income earnings adjusted ongoing Core that excluding operations, as well from indicative issued release unique expense non-cash in and new in a of on

XXXX Our core $XX million the was comparison XXXX. $XXX.X of of from in quarter EBITDA million the quarter continuing fourth to for for operations fourth

EBITDA in full the our $XXX.X core $XXX.X For XXXX. XXXX, million year continuing of from comparison million to in operations was

the utilization driven quarter million increase our higher of fourth segment Americas fourth from million these volumes, domestic X% of adjusted U.S. recorded EBITDA XXXX, $XX industry primary compared results. fiscal of for adjusted quarter Recycling at rates, XXXX, was to segment by fourth the for the quarter the results Looking $X.X XXXX. of of for driver A improved our of EBITDA steel a in

comparison ferrous During to quarter, nonferrous the in dipped most recent quarter. prices slightly third our and

as for the XXXX, metal by The of This our steel picked to the primarily produced Durant, EBITDA tonnes increased facility the a during have was of demand We quarter. Oklahoma better and to facility Our quarter products, not of Americas invest from increased increase of state-of-the-art bring from approximately could XXXX. $XXX.X well shipments long adjusted EBITDA facilities steel in the to mill adjusted other million for Oklahoma of million as $XX.X Mills online combination recorded a fourth cycle the the Durant, in volume segment driven quarter new XX,XXX support Durant, strong fourth time the compared and for margins. Oklahoma.

that project are very for stakeholders. returns the this confident We generated our will positive from be

year's EBITDA EBITDA for of million million in the segment fourth $XX.X XXXX of Fabrication prior an recorded Americas adjusted loss quarter. adjusted $X.X the Our compared to of quarter

have we job seen XXXX, on delivered As remained compressed. have margins throughout

were higher the when would and during the as a quarter effective As the current profitable XXXX; costs the per Current we rebar segment, CMC than fourth It's greater earned a duration difference XXXX price increased worth of loss. and contract when and price this recycling operations raw are material you mill of when are result due shipped combining the raw exists the fabricated nature were of prices. price profitable fourth quarter Selling period. materials material. however, by be contract, during that noting the at rebar we work model of tonnes today integration that a during tonne margin being fab to ship contracted of operations $XX that reflects have, timing the shipped long the and amount fixed current between aware, the rebar our from the to vertical to we to Fabrication shipped segment consolidated despite that

Our construction merchant economic margin strong for EBITDA will of segment annual rest This same that an higher for of $XX.X this XXXX, of is prior record the record quarterly continue adjusted the quarters. in supported recorded for exceed the products fourth that and International rate We adjusted of Mill to Poland's quarter the from the year. million a period in million operation, an of a Europe $XX.X of by coming result from increase growth sector. EBITDA increase anticipate

approximately our balance and had and and August facilities XXXX, Turning of totaled $XXX.X receivable cash cash and under million. as sheet accounts our to liquidity, million XX, availability equivalents of we credit $XXX.X

the anticipation in the that funds loan term will earlier borrow year capital price. interest of between million issued needed million transaction. environment, anticipate the to working we depending bonds of fund $XXX rate closing on aware, purchase the remainder rising prior levels of we that under to to facility are majority raise of for to a our you Gerdau the $XXX We transaction As this the

that Barbara to $XXX the mill third it concludes to million spending fiscal will related We XXXX, million, my very fiscal the costs million new $XXX for Oklahoma much. to in capital related to investment that completion rolling the mill. capital $XXX.X $XX.X working be of the back For expenditures I'll were XXXX was range Poland This in of turn over Thank for million, estimate our you the the includes in which outlook. mentioned. Barbara remarks.

Barbara R. Smith

Mary. you, Thank

Our the is and as season. holiday of typically winter work the the before the beginning slightly begins first wind onset quarter seasonal a of months construction to slower period down

and lost Michael. heavy the out we certain a temporary In as success make our strong hurricanes and From you, We costs planned pricing to customers, the our forward tight from anticipate joining time, in U.S. markets fiscal a we look of shareholders, manufacturing a These and scrap in questions. to from for We're company with now supported continue addition, the call the in is U.S. in margin individuals costs we an positive of And stability outlook outlook Poland due the operations, impact Thank raw remain shipping by X% other, and both factors our will quarter. the in are suppliers, it finished and each XXXX. we items to control goods between current open and Texas and in the effect rains days for the we'll and levels. of the the impact pressures very which extended Florence at anticipate our to our Poland. prices, and We and to by recent demand outage perspective, proud inflationary in a the this consumable demand anticipate metal commitments again, ferrous and call. we Polish on community some manufacturing to X% increase labor as continued market, for of material confident

Operator

today this comes Terry Chris with And first at Deutsche time Please from question. Bank. from session. go Ladies our ahead begin and question question-and-answer the gentlemen, your we'll

Sathish Kasinathan

This shipments. sequential first question Mill in morning. International Chris. Sathish Good regarding is There's increase been hi. covering Yeah, is strong for My the operations. increase in a

metal could to change related sequentially? the any this the in European down slightly of margin mix, Some because product safeguard was was implementation of there but be measures,

Mary A. Lindsey

thank Yes, you.

demand quarter heavier been of in has and remarks, slightly we I in strong quite that rebar think a we in Poland. mentioned did to my mix strong. again, overall I see And the in as anticipate would Poland remain

had but in Poland, a thing comes really opportunistic the pretty only in in a tends shipment and quarter billets also, business that of be was quarter higher that little We was that strong terms the and to than of normal. goes, that

Sathish Kasinathan

the margins further is that case Okay. My color you. that the Last fiscal turn you positive second mid XXXX, fabrication is of could Thank question mentioned could regarding on year the the or margins. quarter, any that? so by you provide still

Mary A. Lindsey

Sathish. Thanks, Yeah.

the but So, low-priced backlog we're of absorbing we that prices the the as that, we're by prices first end tough still mean, in as selling – mentioned, expect and particular, still look profitable and, now But another backlog. the bidding do I the a become enjoying, frankly, fabrication we quarter, we're of the significant to the at of in we business makeup increase and quarter; beyond the expect year. in turnover we amount

Sathish Kasinathan

The – in full first the cost just related X% or for just it year? Barbara is mentioned, final clarification. a it had end the is okay. X% the outage the to it is of that to Thank By quarter My because you. of year, is maintenance question the increase

Barbara R. Smith

outage. to start fixed absorb Yeah. volume add that Thank you. won't just being, Certainly, related will explain an they fixed and if with effect, and, additional other the be wants probably able outage any Mary But escalations. the I'll during commentary. me cost to on much have the the one, cost effect these phenomena absorption two, to as let

you lower run-rate talk probably certainly, the we the escalations, with representation labor more our of I representative whether at you particular, familiar of to and good and costs escalating, a look in input is impact But alloys. of look of forward. long-term the of going if XXXX, fourth of of other fourth but of electrodes want benefit quarter contracts. full but the the tightness quarter input at or – And think these about inventory those all XXXX, it's I market costs think kind of were escalations, everybody is enjoying labor you priced the If were some

Sathish Kasinathan

record And year. Okay. congrats Thank you. Thank a on you.

Barbara R. Smith

you. Thank

Mary A. Lindsey

you. Thank

Operator

Woodwort - LLC question. Our from Securities from go with Credit Suisse Thank Suisse. Good Please morning. comes (USA) next question your Woodwort Curt Credit ahead you. Curt

Barbara R. Smith

Woodwort Good around to Securities get in months little - the mean, bit a Curt your Gerdau I LLC more wanted Credit morning, Curt. deal year-end, two I (USA) closing Just Suisse confidence fact guess clarity to go. for in

how be configuration? deal I can able coming to integration in think if feel guess, planning get confidence like you Do what you you close of do the bit So, be, production the synergies the by does that where of discussed? you'll current of year-end, some is And you kind talk you about it a little that and quickly and timeline sort would and close could from? optimize

Barbara R. Smith

nature, competitors amount be a operations, of would and supply at contracts process. we our in And see close we've that come redacted or whether is need forward. the commentary realized or was Okay. a as of what segment, dropping process year on probably was that the the rebar the year the so impacts, this be some time Yeah, as in a synergies there of relative your remember would selling XXXX the to dislocation as typically price, line once LLC exactly the order upon is more transactions, we we'll market outlined bottom information is this to able a and $X, we looking going your what business and final how give a we just our certainly direct first Americas relative larger into CMOS to and with we're to impact consistent that AMM back closing the if year to Please price, at that or the $XX go that and to going will that resolution, differential Mills take anticipate of the you've is years? the our look fair cleaned, to to to past which there today, conditions expected And Curt, get competitors talk as end potentially planned. – refine articulate there a timeline remained notify commercial billet the to - more or the you more to as relates and kind average assume similar to why around then be I realizations, look Securities regulatory ongoing function but like at a Suisse question but sales Woodwort through minus going kind I has has that that soon is bit get the – – and lot of that in it's been you Credit nothing to and so it by not and little to transaction have consistent that And and plus time where we the plan (XX:XX), we accounting will potentially another estimates. closing be market. price the transaction, discount price XXXX this we a that can seen that's a purchase price develop at of Curt that's widened based (USA) of contracts, able

Mary A. Lindsey

– pricing on they rely estimates. on I comment couldn't AMM estimates. I really develop those don't would we Well, how

by order contract, customer, by by contract order. customer is business Our

is We other all would we all pricing, – objective of disclose to mix. The and that is total we rebar only different off coming that product of of competitive we don't I merchant of specifically the pricing. pricing, are. disclose and and and the biller be Our mention think pricing marketplace reasonable fair thing kind in

changed is, don't might Curt And mix (USA) the that know their with so, in to mix Suisse year - data AMM be Barbara's point disclose one your at due of Securities Woodwort three but last gets mix. the that Has to LLC I Credit versus those we all frankly, where year? all products this of some frankly

Mary A. Lindsey

I we're the trying of did significant will generally As we is of the say, the we've amount to trend quarter, discussed, mix course, little the you billet on speaking during sales, is as sales and fourth that product trend of increase merchant billet lower. a have the of imagine products. overall, bit the a in merchant is mix. percentages can higher But that margin

Barbara R. Smith

X (USA) in - page press Woodwort reference break right. Securities LLC you you our tonnage. the Curt down Credit it if think much. release, very does I Thank Okay, Suisse all

Operator

KeyBanc your from Our next go Please question comes question. ahead from Capital Michael Leshock Markets. with

Michael Leshock

morning. Good my question. for Thanks taking

Just terms that sales? in fabrication at you looking volumes increase or also the total of quarter either to first business, so, in expect do

Mary A. Lindsey

quarter. going first I see volumes in year, and we're we margin the the going as No, think fourth quarter balance going similar quarter that's the I frankly then at mean see very – in And to of quarter, there. very for the where second result, metal looking similar, some to the head the improvement into and we're the and first real

Michael Leshock

lastly, vanadium at so, impact, rebar, Okay, two seeing a $X.XX the and that over a past in pound pound vanadium Are the months? just looking impact recent you years from considering to from $X.XX anything sharply there? or are seeing up and then just you is more in any

Barbara R. Smith

not as that some it as might in we X%, be course, captured significant probably so, impact, and some but others. would us it's X% to see for of That's for

Michael Leshock

it me. Thanks. That's for Okay.

Mary A. Lindsey

Thank you.

Barbara R. Smith

Mike. you, Thank

Operator

go Seth Jefferies. Our next question from question. ahead with comes your Rosenfeld from Please

Seth Rosenfeld

perhaps And I thank out QX. secondly, X%, mentioned just level be from for think or I question. X% talk, cut pressure you then, outage a duration electrodes, what financial first of just the so cost lastly, X% give within the for run Polish for expecting fiscal of the we full Hi, plan that you've cost graphite and expectations you for specific Can earlier, Poland, then, you come XXXX? can that this. I the taking quarter is through And in the X%, pressures, you fiscal sense Thank outlook should is extended to on to earlier that electrodes. that by the through year any comment on us expect to outage you. impact apologize that On QX? already can the to cost you an exacerbated if you comment

Barbara R. Smith

let miss So questions four take follow one, I I and Mary a you please and there, Seth, if so up. have me think think, couple, then – we

throughout year started As a run-rate XXXX, we with if lot good cost the so escalations probably into I heading indicated the not of earlier, quarter, and, escalation the fiscal we fourth But includes were fiscal being into the everything. look absorbed structure. you XXXX; at that's a absorbing our X% to X%

so terms (XX:XX). maintenance outage of a the In Poland occur and on – is your outage, weeks. question six outage the It's very normal doesn't It's around that frequently.

because hasn't it, I'll full out a call there record inventory of and of amount build outage. opportunity so, lot shipping buffer they've been And of, they've to rates, tremendous at ahead unfortunately, a been been that running

outage. to absorbed to have $X time; still the occur estimate would of going smoothly there's underlying overall. strong strong $X XX,XXX an it's market that And and very, coming of and then infrequent but been million million types period for very the have nothing defer these anticipate of will a on for are about enjoying and costs XX,XXX long tonnes some we we a very, to up in and planned they a very tonnes market. basis So, we year, in the tonnes. that But be to outages, to quarter It's

Seth Rosenfeld

Thank you.

of line lost kind tonnes of essentially or of profits, tonnes of costs? $X is included $X $X million lost in to costs, XX,XXX million plus the or execution Just please. to XX,XXX that the to an XX,XXX is follow that XX,XXX at $X top volume, to lost tonnes additional to up million million tonnes on the outage, That

Barbara R. Smith

lower and will you'd that in have factor then costs absorbed, That's to be shipments.

Seth Rosenfeld

Great. Thank much. very you

Barbara R. Smith

you. Thank

Operator

from question from question. Hernandez next Please Derek comes Global. your with ahead Seaport go Our

Derek Hernandez

everybody. morning, Good Hi.

Barbara R. Smith

morning. Good

Derek Hernandez

Thank you. I business wanted fabricated to touch as on the well.

sense. into higher contracts for of just on, to mentioned, to that range later As ones the contracts these deliver versus that roll kind a of be you terms through you are are XXXX. What beginning soonest would sales have price in

Barbara R. Smith

out, I out, a have is two-month, one two Well, percentage don't I detail mean or mix. of specific the the years one-month, year years backlog the backlog three-month. out, of that's three

in basis. are multi-year We contracts. tracking to mix a it's But ongoing suffice monitoring deep individuals and have that and of it on organization that an the say that short-duration that

Mary A. Lindsey

tonne prices Yeah, $XXX are up year. the of and the compared a about the to bidding beginning

we're – improvement pricing other us we're of to This remains fab now this we're in going – the gives in begin replace lower that value a and contracts going and real some seeing and so, And to fair rebar to that amount of beginning in confidence year. strength prices balance is to those significant quarter see second all the that course the some for assumes results then of the flat. bidding

to pricing, rebar to pushes scrap pricing or causes that increases increase, rebar prices those resulting if So, business in that fab increased the absorb then out. and that return profitability further

Derek Hernandez

I very helpful. see. That's

Mary A. Lindsey

you. Thank Yeah.

Derek Hernandez

have the or works? we – still estimate missed earlier, do XXXX, is a in CapEx this I also (XX:XX) for but may, apologies I if if And that

Barbara R. Smith

follow-on in point included think we're Yeah, price because commentary $XXX not do I this range One those projecting in million at Mary her against of raw on fab what in to the to commentary the benefit opportunity $XXX that see an segment, Mary's million prices in a increases, Recycling material a the that for you contracts. which stable if really provides fab time. discussion, hedge remain is

Derek Hernandez

That's And good you thank luck. very much. Appreciate right. Well, it.

Barbara R. Smith

you. Thank

Operator

Bank And question. America. comes Matthew go our from ahead of from with Please Fields next question your

Matthew W. Fields

a everyone. ask just wanted CapEx to estimate. Hey, follow-up about I that

talked acquisition about a conjunction much than is of that not I mid-XXXs. What's the new $XXX think accordance Gerdau Was and $XXX with essentially? higher because of between some in like the in integration the in delta spend, million. marketing you some – million the (XX:XX) bond that number with in spend. it of Like, CapEx the I was the $XXX million order think

Mary A. Lindsey

include that in anticipated and spending bond we some associated Gerdau was marketing, dollars. year So, in the about the capital million initial $XX did with

Matthew W. Fields

Okay.

Mary A. Lindsey

that numbers update are transaction.... the we to million $XXX in Gerdau the and having $XXX those will any giving when we – million today we're the you, not So, the discussion are not effects including we're

Matthew W. Fields

estimate million will on $XXX top those in that Are your Gerdau or that? of upgrades be more included

Mary A. Lindsey

No, they're not.

transaction Gerdau capital a roughly it year going are said But of over the mills. things is obviously. spending what spend about million once updated, a what get $XX increased our lot steel will, of So, we anticipate we've to closes, we normally in Gerdau

that difference is talking in of to the million so, today million and we're what saw $XXX what $XXX marketing bond And the million between you $XX documentation. about

Matthew W. Fields

Okay.

is capital? upgraded assets be and million Gerdau sort Gerdau the then sustaining there'll and the capital the So, $XXX legacy new then of CMC new

Mary A. Lindsey

to $XXX bond, no. when estimate marketed million the to we spending that basis $XX would the $XX an estimate would be Gerdau. the million No, facilities And of The said our $XXX is million we annual million. for excluding capital we acquired on business base

that bridges million, that we numbers documents, Gerdau. $XX to post $XX million it are you to, outlook closing. you $XXX can as if was includes will Since provide and midyear, So, the that of an close million will the transaction these million, as we soon $XXX bond refresh saying all

Matthew W. Fields

That's Okay. really helpful.

Mary A. Lindsey

But $XXX business. the to $XXX base just million million is our

Matthew W. Fields

clears you All Thank right, much. that very that up.

Mary A. Lindsey

Thank Okay. you.

Operator

there this you no And closing back for the any Ms. gentlemen, Smith, call conference I'd ladies questions. further appear be like to turn at remarks. time to to and over

Barbara R. Smith

contribution. results. outlook the a first we perspective. us positive our progress joining Poland in And forward forward speaking from everyone again reiterate to year Oklahoma U.S. Thank and so to see with you, both to again we look today. We look appreciate full far very quarter going and a everyone pleased making that forward for very We're I We just the would Jamie. demand a

Operator

Commercial that does Metals Ladies conference conclude and Company gentlemen, call. today's

your disconnect lines. You may now

Barbara R. Smith	Commercial Metals Co.
Mary A. Lindsey	Commercial Metals Co.
Sathish Kasinathan	Deutsche Bank Securities, Inc.
Curt Woodwort	Credit Suisse Securities (NYSE:USA) LLC
Michael Leshock	KeyBanc Capital Markets, Inc.
Seth Rosenfeld	Jefferies International Ltd.
Derek Hernandez	Seaport Global Securities LLC
Matthew W. Fields	Bank of America Merrill Lynch

Commercial Metals (CMC) 25 Oct 182018 Q4 Earnings call transcript