Financial News

Commercial Metals Company Reports Fourth Quarter And Full Year Fiscal 2019 Results

IRVING, Texas, Oct. 23, 2019 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal fourth quarter and year ended August 31, 2019. Net sales for the fourth quarter increased 18% to $1.5 billion from $1.3 billion in the prior year quarter, and for the full year increased 26% to $5.8 billion compared to $4.6 billion in the prior year, reflecting increased capacity from the previously announced rebar assets acquisition. Earnings from continuing operations were $85.9 million, or $0.72 per diluted share, in the fourth quarter compared to $51.3 million, or $0.43 per diluted share, in the prior year quarter. For the full year, earnings from continuing operations were $198.8 million, or $1.67 per diluted share, compared to $135.2 million, or $1.14 per diluted share in the prior year.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented, "2019 was a transformational year for CMC. I am proud of what our team accomplished, with results that reflect the successful execution of our growth strategy and the strong fundamentals in the end markets we serve."

"Key milestones in fiscal 2019 included the completion and integration of CMC's largest acquisition to date, the ramp up of our second micro mill in Oklahoma, and the addition of hot spooled rebar capability at our Arizona micro mill. Together, they bolster the strategy that has positioned CMC to be the largest supplier of rebar and a leading producer of merchant bar for the U.S. market place. In addition, our Polish operations generated full year EBITDA in excess of $100 million from strong sales and margins despite the flood of imported steel into the European Union.  The successful execution of these accomplishments resulted in our ability to reduce our indebtedness by $124.5 million during the fourth quarter," Smith added.

Results for the fourth quarter and full year included net after-tax expenses related to certain non-operational costs resulting from the acquisition and integration of the rebar assets of $4.9 million and $48.8 million, respectively. Excluding these expenses, adjusted earnings from continuing operations were $90.8 million, or $0.76 per diluted share, for the fourth quarter, an increase of 52% compared to $59.9 million, or $0.51 per diluted share, in the prior year quarter. For the full year, adjusted earnings from continuing operations were $247.6 million, or $2.08 per diluted share, an increase of 41% compared to $176.1 million, or $1.49 per diluted share, in the prior year, as detailed in the non-GAAP reconciliation on page 12.            

As a result of the strong free cash flow generated during the fourth quarter, the Company reduced its debt and accounts receivable programs usage while also improving its cash balance by $72.1 million to $192.5 million at fiscal year-end. Availability under the Company's credit and accounts receivable programs was $611.0 million at August 31, 2019.

On October 22, 2019, the board of directors declared a quarterly dividend of $0.12 per share of CMC common stock payable to stockholders of record on November 6, 2019. The dividend will be paid on November 20, 2019.

Business Segments - Fiscal Fourth Quarter 2019 Review
Our Americas Recycling segment adjusted EBITDA of $4.2 million for the fourth quarter of fiscal 2019 declined compared to $17.0 million for the fourth quarter last year. The decrease reflected a 27% drop in ferrous and 7% drop in non-ferrous prices year-on-year, which also constrained volume.

Our Americas Mills segment adjusted EBITDA of $160.8 million for the fourth quarter of fiscal 2019 rose 51% compared to $106.8 million for the fourth quarter last year, and includes adjusted EBITDA of $58.1 million from the acquired mills, on shipments of 455 thousand tons. Volume increased 45% compared to the prior year fourth quarter primarily due to the ramp up of our Oklahoma micro mill and the additional production from the acquired facilities. Metal margins increased $51 per ton compared to the fourth quarter last year, and $13 per ton sequentially from the third quarter of this year, reflecting the greater price stability of CMC's rebar and long product offerings when compared to the broader steel market.

Our Americas Fabrication segment recorded an adjusted EBITDA loss of $13.2 million for the fourth quarter of fiscal 2019, an improvement compared to an adjusted EBITDA loss of $24.6 million for the prior year fourth quarter. The 2019 fourth quarter included $4.2 million of costs related to the closure of certain acquired locations. As in prior quarters, the fourth quarter EBITDA losses did not include the benefit of the purchase accounting adjustment related to amortization of the unfavorable contact backlog reserve that relates to the acquisition, which was $16.6 million. The acquired locations shipped 172 thousand tons in the 2019 fourth quarter. CMC's historical locations produced break-even results in the 2019 fourth quarter. Current rebar bidding activity remains strong and selling prices averaged $963 per ton in the 2019 fourth quarter, $120 per ton or 14%, higher compared to the same period in the prior year.

Our International Mill segment adjusted EBITDA of $22.7 million for the fourth quarter of fiscal 2019 declined compared to adjusted EBITDA of $36.7 million for the prior year quarter. The construction sector remains strong in Poland and our operations produced record quarterly rebar shipments during the fourth quarter. Results of the operation in comparison to the prior year were lower due to a high volume of steel imports into the European Union.   

Outlook
"Supported by the sentiment of our customers and the strength and profitability of our fabrication backlog, our outlook remains strong," said Ms. Smith. "We anticipate the current elevated rebar margin environment will continue, our fabrication business will be a positive contributor to our results, and the solid results will continue from our Polish operations. Our strong cash flow generation has allowed us to delever faster than originally anticipated, strengthening our balance sheet and enabling us to seek additional opportunities for long term growth that will benefit our stakeholders."

Conference Call
CMC invites you to listen to a live broadcast of its fourth quarter fiscal 2019 conference call today, Wednesday, October 23, 2019, at 11:00 a.m. ETBarbara Smith, Chairman of the Board of Directors, President, and Chief Executive Officer, and Paul Lawrence, Vice President and Chief Financial Officer, will host the call. The call is accessible via our website at www.cmc.com. In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors".

About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies provided by our acquisitions, demand for our products, steel margins, the ability to operate our mills at full capacity, future supplies of raw materials and energy for our operations, share repurchases, legal proceedings, the undistributed earnings of our non-U.S. subsidiaries, U.S. non-residential construction activity, international trade, capital expenditures, our liquidity and our ability to satisfy future liquidity requirements, estimated contractual obligations, the effects of the acquisition of substantially all of the U.S. rebar fabrication facilities and the steel mini-mills located in or around Rancho Cucamonga, California, Jacksonville, Florida, Sayreville, New Jersey and Knoxville, Tennessee previously owned by Gerdau S.A. and certain of its subsidiaries (collectively, the "Acquired Business") and our expectations or beliefs concerning future events. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements.

Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2019, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our fabrication contracts due to rising commodity prices; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; potential limitations in our or our customers' abilities to access credit and non-compliance by our customers with our contracts; activity in repurchasing shares of our common stock under our repurchase program; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate, and integrate acquisitions and the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; failure to retain key management and employees of the Acquired Business; issues or delays in the successful integration of the Acquired Business' operations, systems and personnel with those of the Company, including the inability to substantially increase utilization of the Acquired Business' steel mini mills, and incurring or experiencing unanticipated costs and/or delays or difficulties; unfavorable reaction to the acquisition of the Acquired Business by customers, competitors, suppliers and employees; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; impact of goodwill impairment charges; impact of long-lived asset impairment charges; currency fluctuations; global factors, including political uncertainties and military conflicts; availability and pricing of electricity, electrodes and natural gas for mill operations; ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; new and clarifying guidance with regard to interpretation of the Tax Cuts and Jobs Act ("TCJA") that could impact our assessment; and increased costs related to health care reform legislation.

COMMERCIAL METALS COMPANY

FINANCIAL & OPERATING STATISTICS (UNAUDITED)



Three Months Ended


Fiscal Year Ended

(in thousands, except per ton amounts)


8/31/2019


5/31/2019


2/28/2019


11/30/2018


8/31/2018


8/31/2019


8/31/2018

Americas Recycling















Net sales


$

268,447



289,015



287,075



302,009



361,363



1,146,546



1,365,429


Adjusted EBITDA


$

4,235



12,331



10,124



15,434



16,996



42,124



68,694


Short tons shipped















Ferrous


559



597



570



579



644



2,305



2,435


Nonferrous


61



60



59



63



69



243



263


Total short tons shipped


620



657



629



642



713



2,548



2,698


Average selling price (per short ton)















Ferrous


$

217



252



266



273



298



252



289


Nonferrous


$

1,998



2,047



1,998



1,982



2,155



2,006



2,238

















Americas Mills















Net sales


$

824,809



866,903



774,709



601,853



604,435



3,068,274



1,996,903


Adjusted EBITDA


$

160,832



158,114



112,396



113,873



106,830



545,215



301,805


Short tons shipped















     Rebar


897



913



773



530



482



3,113



1,795


     Merchant & Other


319



323



322



317



359



1,281



1,218


Total short tons shipped


1,216



1,236



1,095



847



841



4,394



3,013


Average price (per short ton)















Total selling price


$

645



670



677



682



674



666



612


Cost of ferrous scrap utilized


$

246



284



303



307



326



284



303


Metal margin


$

399



386



374



375



348



382



309

















Americas Fabrication















Net sales


$

622,385



633,047



530,836



437,111



403,889



2,223,379



1,427,882


Adjusted EBITDA


$

(13,151)



(23,289)



(49,578)



(36,996)



(24,607)



(123,014)



(39,394)


Total short tons shipped


448



469



396



319



307



1,632



1,114


Total selling price (per short ton)


$

963



925



845



868



843



905



800

















International Mill















Net sales


$

205,461



209,365



175,198



227,024



253,058



817,048



887,038


Adjusted EBITDA


$

22,666



24,120



20,537



32,779



36,654



100,102



131,720


Short tons shipped















Rebar


151



126



66



80



145



423



459


Merchant & Other


237



250



238



312



289



1,037



1,041


Total short tons shipped


388



376



304



392



434



1,460



1,500


Average price (per short ton)















Total selling price


$

500



524



545



547



555



528



560


Cost of ferrous scrap utilized


$

265



288



301



295



305



288



314


Metal margin


$

235



236



244



252



250



240



246


 


COMMERCIAL METALS COMPANY

BUSINESS SEGMENTS (UNAUDITED)

(in thousands)


Three Months Ended


Fiscal Year Ended

Net sales


8/31/2019


5/31/2019


2/28/2019


11/30/2018


8/31/2018


8/31/2019


8/31/2018

Americas Recycling


$

268,447



$

289,015



$

287,075



$

302,009



$

361,363



$

1,146,546



$

1,365,429


Americas Mills


824,809



866,903



774,709



601,853



604,435



3,068,274



1,996,903


Americas Fabrication


622,385



633,047



530,836



437,111



403,889



2,223,379



1,427,882


International Mill


205,461



209,365



175,198



227,024



253,058



817,048



887,038


Corporate and Other


(378,097)



(392,458)



(365,035)



(290,655)



(314,307)



(1,426,245)



(1,033,529)


Total net sales


$

1,543,005



$

1,605,872



$

1,402,783



$

1,277,342



$

1,308,438



$

5,829,002



$

4,643,723

















Adjusted EBITDA from continuing operations















Americas Recycling


$

4,235



$

12,331



$

10,124



$

15,434



$

16,996



$

42,124



$

68,694


Americas Mills


160,832



158,114



112,396



113,873



106,830



545,215



301,805


Americas Fabrication


(13,151)



(23,289)



(49,578)



(36,996)



(24,607)



(123,014)



(39,394)


International Mill


22,666



24,120



20,537



32,779



36,654



100,102



131,720


Corporate and Other


(29,337)



(27,305)



(24,146)



(59,554)



(28,827)



(140,342)



(110,604)


 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)


Three Months Ended


Fiscal Year Ended

(in thousands, except share data)

8/31/2019


8/31/2018


8/31/2019


8/31/2018

Net sales

$

1,543,005



$

1,308,438



$

5,829,002



$

4,643,723


Costs and expenses:








Cost of goods sold

1,290,346



1,125,027



5,025,514



4,021,558


Selling, general and administrative expenses

131,882



108,975



463,271



401,452


Impairment of assets

369



840



384



14,372


Interest expense

17,702



15,654



71,373



40,957



1,440,299



1,250,496



5,560,542



4,478,339


Earnings from continuing operations before income taxes

102,706



57,942



268,460



165,384


Income taxes

16,826



6,682



69,681



30,147


Earnings from continuing operations

85,880



51,260



198,779



135,237










Earnings (loss) from discontinued operations before income taxes

280



(1,786)



(528)



3,235


Income taxes (benefit)

49



(2,086)



158



(34)


Earnings (loss) from discontinued operations

231



300



(686)



3,269










Net earnings

$

86,111



$

51,560



$

198,093



$

138,506










Basic earnings (loss) per share*








Earnings from continuing operations

$

0.73



$

0.44



$

1.69



$

1.16


Earnings (loss) from discontinued operations





(0.01)



0.03


Net earnings

$

0.73



$

0.44



$

1.68



$

1.19










Diluted earnings (loss) per share*








Earnings from continuing operations

$

0.72



$

0.43



$

1.67



$

1.14


Earnings (loss) from discontinued operations





(0.01)



0.03


Net earnings

$

0.72



$

0.44



$

1.66



$

1.17










Cash dividends per share

$

0.12



$

0.12



$

0.48



$

0.48


Average basic shares outstanding

118,046,800



117,119,557



117,834,558



116,822,583


Average diluted shares outstanding

119,392,062



118,407,316



119,124,628



118,145,848



* EPS is calculated independently for each component and may not sum to net earnings EPS due to rounding

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS



August 31,

(in thousands, except share data)


2019


2018

Assets





Current assets:





Cash and cash equivalents


$

192,461



$

622,473


Accounts receivable (less allowance for doubtful accounts of $8,403 and $4,489)


1,016,088



749,484


Inventories


692,368



589,005


Other current assets


179,088



116,243


Total current assets


2,080,005



2,077,205


Property, plant and equipment:





Land


142,825



85,288


Buildings and improvements


750,381



631,501


Equipment


2,234,800



1,918,342


Construction in process


68,579



35,741




3,196,585



2,670,872


Less accumulated depreciation and amortization


(1,695,614)



(1,595,834)


Property, plant and equipment, net


1,500,971



1,075,038


Goodwill


64,138



64,310


Other noncurrent assets


113,657



111,751


Total assets


$

3,758,771



$

3,328,304


Liabilities and stockholders' equity





Current liabilities:





Accounts payable


$

288,005



$

261,258


Accrued expenses and other payables


353,786



260,939


Acquired unfavorable contract backlog


35,360




Borrowings under accounts receivable programs


3,929




Current maturities of long-term debt


13,510



19,746


Total current liabilities


694,590



541,943


Deferred income taxes


79,290



37,834


Other noncurrent liabilities


133,620



116,325


Long-term debt


1,227,214



1,138,619


Total liabilities


2,134,714



1,834,721


Commitments and contingencies (Note 20)





Stockholders' equity:





Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 117,924,938 and 117,015,558 shares


1,290



1,290


Additional paid-in capital


358,668



352,674


Accumulated other comprehensive loss


(124,126)



(93,677)


Retained earnings


1,585,379



1,446,495


Less treasury stock, 11,135,726 and 12,045,106 shares at cost


(197,350)



(213,385)


Stockholders' equity


1,623,861



1,493,397


Stockholders' equity attributable to noncontrolling interests


196



186


Total equity


1,624,057



1,493,583


Total liabilities and stockholders' equity


$

3,758,771



$

3,328,304



See notes to consolidated financial statements.

 


COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



Year Ended August 31,

(in thousands)


2019


2018

Cash flows from (used by) operating activities:





Net earnings


$

198,093



$

138,506


Adjustments to reconcile net earnings to cash flows from (used by) operating activities:





Depreciation and amortization


158,671



131,659


Amortization of acquired unfavorable contract backlog


(74,784)




Share-based compensation


25,106



23,929


Deferred income taxes and other long-term taxes


49,523



14,377


Asset impairments


384



15,053


Provision for losses on receivables, net


388



2,510


Write-down of inventory


723



1,407


Net (gain) loss on sales of a subsidiary, assets and other


(2,281)



(1,322)


Changes in operating assets and liabilities, net of acquisitions


48,702



(89,586)


Beneficial interest in securitized accounts receivable


(367,521)



(670,457)


Net cash flows from (used by) operating activities


37,004



(433,924)







Cash flows from (used by) investing activities:





Acquisitions, net of cash acquired


(700,941)



(6,980)


Capital expenditures


(138,836)



(174,655)


Proceeds from the sale of discontinued operations and other


1,893



75,482


Proceeds from insurance


4,405



27,375


Proceeds from the sale of property, plant and equipment


3,910



8,103


Advances under accounts receivable programs




226,325


Repayments under accounts receivable programs




(304,178)


Beneficial interest in securitized accounts receivable


367,521



670,457


Net cash flows from (used by) investing activities


(462,048)



521,929







Cash flows from (used by) financing activities:





Proceeds from issuance of long-term debt


180,000



350,000


Proceeds from accounts receivable programs


288,896




Repayments under accounts receivable programs


(296,033)




Repayments of long-term debt


(127,704)



(19,967)


Cash dividends


(56,537)



(56,076)


Stock issued under incentive and purchase plans, net of forfeitures


(1,876)



(9,302)


Debt issuance costs




(5,254)


Other


10



31


Net cash flows from (used by) financing activities


(13,244)



259,432


Effect of exchange rate changes on cash


(598)



(703)


Increase (decrease) in cash and cash equivalents


(438,886)



346,734


Cash, restricted cash and cash equivalents at beginning of year


632,615



285,881


Cash, restricted cash and cash equivalents at end of year


$

193,729



$

632,615







Supplemental information:





Cash and cash equivalents


$

192,461



$

622,473


Restricted cash


$

1,268



$

10,142


Total cash, cash equivalents and restricted cash


$

193,729



$

632,615


COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This press release contains financial measures not derived in accordance with generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measures are provided below.

Core EBITDA from Continuing Operations is a non-GAAP financial measure. Core EBITDA from continuing operations is the sum of earnings (loss) from continuing operations before interest expense and income taxes (benefit). It also excludes recurring non-cash charges for depreciation and amortization, asset impairments, and equity compensation. Core EBITDA from continuing operations also excludes certain material acquisition and integration related costs, mill operational start-up costs, CMC Steel Oklahoma incentives, net debt restructuring and extinguishment gains and losses and severance expenses. Core EBITDA from continuing operations should not be considered an alternative to earnings (loss) from continuing operations or net earnings (loss), or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP. However, we believe that Core EBITDA from continuing operations provides relevant and useful information, which is often used by analysts, creditors and other interested parties in our industry as it allows: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our ongoing core performance; and (iii) the assessment of period-to-period performance trends. Additionally, Core EBITDA from continuing operations is the target benchmark for our annual and long-term cash incentive performance plans for management. Core EBITDA from continuing operations may be inconsistent with similar measures presented by other companies.

A reconciliation of earnings from continuing operations before income taxes to Core EBITDA from continuing operations is provided below:


Three Months Ended


Fiscal Year Ended

(in thousands)

8/31/2019


5/31/2019


2/28/2019


11/30/2018


8/31/2018


8/31/2019


8/31/2018

Earnings (loss) from continuing operations

$

85,880



$

78,551



$

14,928



$

19,420



$

51,260



$

198,779



$

135,237


Interest expense

17,702



18,513



18,495



16,663



15,654



71,373



40,957


Income taxes (benefit)

16,826



29,105



18,141



5,609



6,682



69,681



30,147


Depreciation and amortization

41,051



41,181



41,245



35,176



32,610



158,653



131,508


Asset impairments

369



15







840



384



14,372


Non-cash equity compensation

7,758



7,342



5,791



4,215



5,679



25,106



24,038


Acquisition and integration related costs

6,177



2,336



5,475



27,970



10,907



41,958



25,507


Amortization of acquired unfavorable contract backlog

(16,582)



(23,394)



(23,476)



(11,332)





(74,784)




Mill operational start-up costs*













13,471


CMC Steel Oklahoma incentives













(3,000)


Purchase accounting effect on inventory





10,315







10,315




Core EBITDA from continuing operations

$

159,181



$

153,649



$

90,914



$

97,721



$

123,632



$

501,465



$

412,237



* Net of interest, taxes, depreciation and amortization, impairments, and non-cash equity compensation

Adjusted earnings from continuing operations is a non-GAAP financial measure that is equal to earnings (loss) from continuing operations before certain acquisition and integration related costs, mill operational start-up costs, CMC Steel Oklahoma incentives, asset impairments, debt restructuring and extinguishment gains and losses and severance expenses, including the estimated income tax effects thereof. Additionally, we adjust adjusted earnings from continuing operations for the effects of the TCJA as well as the tax benefit associated with an international reorganization. Adjusted earnings from continuing operations should not be considered as an alternative to earnings from continuing operations or any other performance measure derived in accordance with GAAP. However, we believe that adjusted earnings from continuing operations provides relevant and useful information to investors as it allows: (i) a supplemental measure of our ongoing core performance and (ii) the assessment of period-to-period performance trends. Management uses adjusted earnings from continuing operations to evaluate our financial performance. Adjusted earnings from continuing operations may be inconsistent with similar measures presented by other companies. Adjusted earnings from continuing operations per diluted share is defined as adjusted earnings from continuing operations on a diluted per share basis.

A reconciliation of earnings from continuing operations to adjusted earnings from continuing operations is provided below:


Three Months Ended


Fiscal Year Ended

(in thousands)

8/31/2019


5/31/2019


2/28/2019


11/30/2018


8/31/2018


8/31/2019


8/31/2018

Earnings (loss) from continuing operations

$

85,880



$

78,551



$

14,928



$

19,420



$

51,260



$

198,779



$

135,237


Impairment of structural steel assets













12,136


Acquisition and integration related costs

6,177



2,336



5,475



27,970



10,907



41,958



25,507


Mill operational start-up costs













18,016


CMC Steel Oklahoma incentives













(3,000)


Purchase accounting effect on inventory





10,315







10,315




Total adjustments (pre-tax)

$

6,177



$

2,336



$

15,790



$

27,970



$

10,907



$

52,273



$

52,659
















Tax Impact














TCJA impact

$



$



$

7,550



$



$



$

7,550



$

10,600


International reorganization













(9,200)


Related tax effects on adjustments

(1,297)



(490)



(3,316)



(5,874)



(2,290)



(10,977)



(13,236)


Total tax impact

(1,297)



(490)



4,234



(5,874)



(2,290)



(3,427)



(11,836)


Adjusted earnings from continuing operations

$

90,760



$

80,397



$

34,952



$

41,516



$

59,877



$

247,625



$

176,060
















Adjusted earnings from continuing operations per diluted share

$

0.76



$

0.67



$

0.29



$

0.35



$

0.51



$

2.08



$

1.49


 

Cision View original content:http://www.prnewswire.com/news-releases/commercial-metals-company-reports-fourth-quarter-and-full-year-fiscal-2019-results-300943590.html

SOURCE Commercial Metals Company

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.

Use the myMotherLode.com Keyword Search to go straight to a specific page

Popular Pages

  • Local News
  • US News
  • Weather
  • State News
  • Events
  • Traffic
  • Sports
  • Dining Guide
  • Real Estate
  • Classifieds
  • Financial News
  • Fire Info
Feedback