Recent RDUS transcripts
Associated RDUS filings
Michael Bennett | Senior Director of Investor Relations |
Tamara Lundgren | Chairman and Chief Executive Officer |
Richard Peach | Chief Financial Officer and Chief Strategy Officer |
Ladies and gentlemen, thank you for standing by and welcome to the Schnitzer Steel Third Quarter 2020 Earnings Release Call and Webcast. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I'd now like to hand the conference to your speaker today, Michael Bennett, Investor Relations. Please go ahead sir.
Thank you, Joel, good morning. company's of the Relations. Bennett, Michael Senior Investor Director I'm Schnitzer welcome presentation fiscal I to to XXXX. Steel's of am happy quarter you earnings third for the
In schnitzersteel.com of which issued can access we posted addition Web set you audio site our release at a both press www.schn.com. and have slides of on to today's or our comments,
the is we company's release statement on Harbor start, detailed the Safe press will which let Before XX-Q, our X, Form me also which be to and today. in call in your attention later included Slide filed
on forward-looking volume expansion. note as growth call we our Slide on such margin future As X, we make today, targets, and statements may statements our about our
materially those forward-looking may in results differ actual Our from projected our statements.
will actual in X, from Additional to our metrics included results some note press Please information discussing non-GAAP as concerning be XX-Q. in the GAAP our to statement Slide reconciliation during measures our in a appendix materially the that slide of those factors as Form contained well release to is presentation. our cause We've today. could and of forward-looking we differ presentation today those that
the Peach, Chief Chief turn Now our today and to will call Executive Officer. Strategy our Richard call host Officer. Tamara the Chairman with Chief Financial She and Lundgren, over let me Officer
Address I'd operational today serving morning their fiscal culture Good as quarter. this strength pandemic, our role our wrap with will you, of our and our the demonstrating results thanking this we our on quarter agility I'd as our COVID-XX platform. initiatives Richard tirelessly us performance, encouraged our begin, critical response resiliency announced on conference update through our business gradual of third detail XXXX like our you economic this flows strategic take to which suppliers U.S. trends essential the joining extraordinary we'll reflect to and crisis. the structure. follow financial and and and customers our results the more And supply restart communities, before by are the third Michael. of activity we their then the investments up and morning, support our one our call. call Thank to your everyone. capital The stronger underway. industry. financial we by worked supporting of in a of Thank well for and the note you I'll to and demand, continuously of last higher and discussion CapEx and the questions. prices. employees and on turn globally, segment all They've quarter efforts scrap have like for start we macro
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now to start let's So Slide by X. turning
the operated continuously crisis. We through have COVID-XX
suppliers disposed diverted products in role and communities of reflects designation safety recycling This reflects of are included identified in supporting business hands safety who coverings, the include These be and of and in and the for our we screening, and the the arrangements by our as enabled a deployed health, and infrastructure and of U.S. our safe, and on, landfills, social raw and rolled our protocols critical that to our avoid are where Department and essential the and essential state employees in thermal to facilities actions or customers, Equally pandemic. adoption Security The sites. facilities Puerto chain finished us in materials materials people, of steel to the supplying sector Canada. visit distancing, early applicable. has throughout operate defined Homeland infrastructure. important Rico training this continue our engaged local including our frequently face otherwise all our the cleaning We less safety way. operating remote critical would the wellness environmentally and spread comprehensive these keep as our health our by wearing protocols, all virus platform out important, work the U.S., authorities across in washing the sites related of role businesses pre-entry steady Early to sustainable construction communications of company's by and as ensure supply be our our work our in
new lost focus practices, and our work safety. have members on protocols their team While these not implementing operational
our for as in During their safest the our first through congratulate year, of recall, fiscal further history. team continued to you our I quarter, our fiscal many year. 'XX they continued may improved was And in safety trends And progress TCIR the company's fiscal of improving performance. the recorded the months nine last to deliver want year
their to turning and like a generosity who used to I'd before Now the Slide, to support people ingenuity need. of provide to global our highlight our members and take next networks have in moment our team communities to to the
values Red core converting Cross. our people that countless successful There above donated hospitals, committed we food are the time-off and During beyond have to our through this the our American and banks food to of donated program, thousands local paid this crisis, support actions. our during other procured of pandemic, into gone have with ways lead drives including masks donation and local customer and
turn let's to Slide now X. So
and wavered Just people, focused planet sustainability are throughout as to stayed the our which profit. pandemic, commitment we focused and progress have from we've our on goals not COVID-XX also on safety health
move review that sustainability and how apart Schnitzer on So let sets financial core what of other our do on since we spend XXXX. operate founding people What results. many businesses me our few is a from before has minutes the been at a we in of planet and to I
characteristics and by the broad company company's gender, been religion to strengthened fairness I our equal my workforce a and respect, by language, commitment Our and built clearest orientation did culture if want a sexual have reaffirm that was opportunity. and on define not a based opportunity. such This on diversity. based always in possible place race, exist, only workplace a to talent or as can and commitment where we're
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our powered state-of-the-art invest Our our in XX% published continuing are environmental facilities And our commitment planet means gas emissions. multi-year our greenhouse controls. electricity. incorporate carbon Today to safety tracking the manufacturing goals to and that to and and facilities free environmental we sustainability, are we to have by recycling reduce are towards
all for our various the again to were recognized the making program. commitments. delivering aspects we progress on members During team our sustainability quarter, for want I our contributions sustainability the excellent of we're of in acknowledge
morning, results. announced quarter third our of So adjusted fiscal review 'XX per let's $X.XX. this turn Slide to we Earlier now to earnings X share our quarter third
performance, of During one challenging debt its consecutive reduced delivered generated almost net most we positive times, in a results by operating third market in strong non-ferrous ferrous since and issued cash our of the recent AMR dropped driven and combination where initiatives, a XXXth quarters flow, costs doubled quarterly benefits. dividend. lower quarter, CSS environment utilization, scrap operating new operating delivered seen sequentially, not the levels sales In productivity our XXXX. solid raw income to material prices segment higher and
finished and taken the The volumes discussed its we initiatives, due cash we kept CSS the responsive that and shareholders our to sales supply C's of all our while top initiatives economic keep non-ferrous people shut workforce our safely so. through a to our the optimize At very COVID-XX, that and to and flexible very at have ferrous pandemic. and I've can manage protocols the last steel actions and our effectively year already customers, who were continue align This lower downs. safe our AMR, equal quickly priority. over be we operating calling on quarter team costs materials operating clearly overall our been that commercial levels AMR's to it shown process dividend. to for we've move to has work strategic five in and the are deployed is CSS's safe, return our came and requires through in almost sales, challenging in effectively production site demand ability Keeping sales and our enabled notwithstanding working as order the environment. Our our progress will year-over-year customer customer that situation doing COVID-XX through communities focus multiple underpinned what maintain is flow. implemented capital, support focus with how volumes, costs declined the strong our our visit third already priorities performance. capital focus and service and COVID-XX
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initiatives successfully and Our to cost flows. the partly supply commercial and adjustments lower impact of prices offset lower implemented team
on focus did quarter, productivity this challenging our not During falter. also uniquely
of productivity This quarter the announced the run targeted rate initiatives full schedule, last October. we ahead delivered of we
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more review turn to trends conditions So and X market Slide to now let's in detail.
and export below fell As or as or levels. ferrous see in per you will sales reaching had still begun $XX you By upper March, prices left can XX%, but pre-COVID ton we're to prices hand approximately multi-year in domestic the materially lows. see, May, chart, recover over
China Coast, was scrap. what prices and Looking the activity Demand should iron restarts, the billet Demand increase mill in due at post economy including than during suspension production of relatively of Turkish effort to an West off during off challenges to the are two the by as stimulus. higher based, May needed. prices driven oriented East demand manufacturing government sideways grades with fiscal the down. export as domestic export manufacturing revive Government ore from by Chinese during logistics the support in supply lifting market demand activity. incentives with varied higher purchased market. anticipation to other domestic steel scrap the Asia auto growth The domestic to higher to COVID-XX of the region shutdowns, Turkish trends. production and pricing occurred quarter in impacted all prices from demand broad scrap slightly and to was June But inventory production domestic its and and as in the shorter quarter U.S. quarter region, from mills was lockdowns, in return the of auto utilization Coast was
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following levels of that reopening During quarter, to copper collection. as confidence prices efficient the improved and and prices the stimulus the reached recover U.S. Prices began and economy. lows, April, programs to aluminum multi-year late China's inhibited March in reducing purchase
been have the flows and economic ferrous both non-ferrous weak crisis of the prices. markets, consequences For COVID-XX and supply scrap the lower
and to see success concerns continue the this of we reopen We speed and expect the reverse reopening. global as expect term near volatility although U.S. the due over economies to to
X Slide of emphasis the near intact discuss The significant continued long-term carbon metal COVID-XX. the recycling. however, to and to degree steelmaking in some is due uncertainty lower trends market term Despite global to volatility drivers to turn scrap of increased There remain let's demand for demand term of underlying conditions greater current the due So now in on the a longer the scrap. capacity based of EAF growth economies. intensity the
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with carbon in increase trends produced and years demand is significantly in the China expanding other our materials addition, strategic been of proportion expected due long-term its increase metal-based well And lower EAF for as the projected to and recycled products economies. underpin to In as steelmaking Asian These the is ahead. has initiatives. footprint, in U.S. to
As kept next we'll priorities, And experiencing a the caused slide, strong result, are focus our on already a the benefits. discuss by as we've strategic notwithstanding we disruption on COVID-XX.
So Slide turn review now let's X these to activities. to
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to delays seen technologies the process our as processes, our improve in our Richard permitting to furnace materials due forward Second, produce increase able products. projects in describe are and investments ready Once detail, more extract will of be completed, and recovery from move our metal we COVID-XX. advanced continue shredding although have more throughput, we'll equipment to these delivery some efficiency
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turn me more a and strategic it investments. of now segment Richard? Richard let to our performance detailed for So our over CapEx review
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or rapid Now inventory quarter. average per at operating let's of Both facilities to operating third of positive labor benefit shipments the $X adverse Slide execution turn from XX performance this impact to supply adjusted of to quarter, the led in and actions sales $X third ton. and of lower The on trends $X the year our operating achieved COVID-related from prices. below ferrous, ton was strong approximately discuss to the in metals. by for impact income prices focus cost adjust partly AMR per income hours performance accounting took orders were and in third and our the directly economic excluding million, offset decrease impacted keeping market business non-ferrous operating the of quarter AMR. for the of and slowdown to result drops ton. these operating The our action variable platinum as sharp open in million. was per being The AMR's all income to by we Adjusted fiscal first well group $X positive a our and $X second reduce quarters
non-ferrous accounting October. despite for $X quarter have prices million. up activity, This compares The sequentially the for income economic volumes trend of are volumes, in selling replaced our by to environments, auto productivity from since operating this were when our favorably prices selling parts $X and implemented historically on of lower basis, third the counter quarter a parts per being On ton, auto demand down because that ton. by is mechanical cars X%, excluding stores our per However, cyclical primary Despite initiatives fell benefit are first increased both reduced adjusted basis inventory by average last same economic recycled has often. of $X average and of illustrates ferrous our reason improvement average weaker volumes both benefits sales our X%. sequential we sales retail and less decreased the while
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slightly the volumes strong disruption spreads sequentially CSS sales were a rolling COVID. lower utilization that well price The metal ahead finished time our the was despite demand and of up for supported our prices second from steel were due mill steel maintenance. planned scrap a and also to steel out expand was XX% As sales Sequentially environment. had only X% to steady lower able result, finished production included of some quarter
scrap contribution reduced recycling was and the significantly operations, by production of this costs which environment from price lower CSS's offset productivity benefits SG&A. initiatives, the While reduced
to again, move discuss and capital for XX Let's million. operating at Slide demonstrates items. debt cycle. at performance million. sequentially quarter And and flows corporate our million. million strong reduced cash track the of flow record once cash our the our and the We was $XX third strong net end by debt This structure was in Operating through the year-to-date delivering positive is $XX $XXX quarter, $XX the net
XX% our of At net debt third with was X.Xx. quarter, to the Our we ratio just ratio of adjusted our net end was in and leverage the covenants. full debt EBITDA were compliance
run a of of of rollout at amending end agreed life we our strength effectively our The facility. four covenants our not for of the be technology cost remaining our uncertainty situation, agreement the relaxation is enables recovery, spread economic the However, to complete timing and our material over business in accounting credit This us ongoing COVID quarters. next June, the of our purposes will lenders, of of continue projects. the and and critical to over navigate with light the for
Capital for credit drew credit totaled cash million. and pay our was we this strong the the expenditures intend of million $XX the trend down from cash result that in fiscal amendment, facility back we in and our $XX flows, quarter third CapEx year-to-date, to total As early of a April.
includes million expect fiscal $XX to $XX Act. environmental projects. and Federal by million the in with quarter recognition XX% driven is We associated of up $XX of costs the including our and in in rate benefits maintaining projects to total spend of million tax This part CARES growth in was total of a the $X balance million $XX to third were 'XX. the business, the effective for a benefit Adjusted corporate tax on million up
to $XX year-to-date implementing are $X Of During achieved targeting benefits amount in the this that charges EPS. including been fiscal further these our approximately are $X expect These productivity with in costs original excluded charges quarter, from made in million other and year. exit-related third we connection $XX the quarter. progress of exceed realized adjusted has target now the restructuring for initiatives, million fiscal We 'XX. In this productivity in our we million know initiatives incurred million quarter. are
third the our capital XXXth shareholders dividend. During also we to quarter, returned through consecutive quarterly
the we 'XX. to Schnitzer transition Finally, beginning the model to our new of fiscal at operating our expect One make
SG&A, reporting revenues, level earnings. will enterprise consolidated Our still include costs, EBITDA and
now We also selling Tamara. well plan will as initiatives. to as for strategic products, the turn including continue and reporting for major operating prices presentation I back our statistics, volumes benefits and expected returns over to
Thank you, Richard.
XXXX. the successfully through toughest times. and a in and navigating legacy Recession. team. we reflect of There's was that on at company third noting During of the founded are a from challenges of a rapidly head And our our and of It's quarter downturns Great that evolving the challenges, the Great operations volatility agility experienced environment Depression resiliency we've company to that the our presented unprecedented our facing unique and results worth
uncertain, team is on longer initiatives. While our execute near managing control while in our outlook can term experienced the the in what term is continuing we short-term, to
strong an of our operating returning dividend. We cash capital a of and productivity record and uninterrupted the sheet balance track delivering interest flows the to low leverage expense, through record shareholders growth in with net cycle ability of have through company invest our to our and and a strong positive
years, which performance are currently improve the Our past underway can be attributed business our and performance. several to we've steps steps to taken over the continually
your global quarter on our employees our closing, to you're increased In metal communities based which for to and everything be emphasis thank steelmaking is business intensity efforts. company recycling, This in families The lower Thank and their outlook economies. to the greater leader continue you've like industry capacity truly keep I'd EAF you and to growth our your why industry. the our in is safe the and With to support the strong. we long-term remain continued communities, your doing for extraordinary recycling of and for country. that a colleagues, and carbon friends a demonstrated our safe, in
operator, Now, let's call questions. open up for the
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operator. Well, you, thank
our With I fourth morning may results. in technical all that October, and we Thank again you I the with you. full some thank want quarter to look we of know our in called difficulties. what to let and and when forward 'XX extended today report we commentary think you this year speaking you have fiscal
concludes calls. this Thank today's gentlemen, conference and you participating. Ladies for
may disconnect. now You
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