Commercial Metals Company Reports Fourth Quarter Earnings Per Share Of $0.03 And Full Year Profits Of $77.3 Million
IRVING, Texas, Oct. 23, 2013 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced financial results for its fourth quarter and year ended August 31, 2013. Net earnings for the fourth quarter ended August 31, 2013 were $4.1 million, or $0.03 per diluted share, on net sales of $1.7 billion. This compares to net earnings of $30.2 million, or $0.26 per diluted share, on net sales of $1.8 billion for the three months ended August 31, 2012. Net earnings for the fourth quarter of 2013 included asset impairment charges related to our Australian operations of $25.9 million, or $0.22 per diluted share. For the year ended August 31, 2013, net earnings were $77.3 million or $0.66 per diluted share on net sales of $6.9 billion; this compares to net earnings of $207.5 million or $1.78 per diluted share on net sales of $7.7 billion for the year ended August 31, 2012.
Joe Alvarado, Chairman of the Board, President, and CEO, commented, "We are proud to report our eighth consecutive quarter of positive earnings. We took action in the fourth quarter to strengthen our Australian operations which we believe will yield benefits in the coming quarters. Furthermore, our commitment to focus on our core operations is evidenced by the previously announced sale of our copper tube manufacturing operation, Howell Metal Company."
The board of directors of CMC declared a quarterly dividend of $0.12 on October 22, 2013 for shareholders of record on November 6, 2013. The dividend will be paid on November 20, 2013.
Fourth Quarter 2013 Review
For this year's fourth quarter, adjusted EBITDA from continuing operations was $83.4 million and fourth quarter cash flow from operations was at its strongest level this fiscal year. After-tax items included in continuing operations were:
- after-tax LIFO income of $10.3 million ($0.09 per diluted share), compared to $16.9 million ($0.15 per diluted share) of after-tax LIFO income in the fourth quarter of 2012;
- impairment of goodwill and other assets and a full valuation allowance of tax net operating losses related to our Australian operations of $25.9 million ($0.22 per diluted share); and
- a tax benefit of $7.2 million ($0.06 per diluted share) related to the reorganization of our Australian legal entities.
Earnings from discontinued operations in the fourth quarter of 2013 were $0.3 million ($0.00 per diluted share), which primarily consisted of earnings related to our copper tube business. We previously announced the sale of this operation for $58.5 million, subject to customary purchase price adjustments, which will be reflected in earnings for our first quarter of fiscal 2014.
Our Americas Recycling segment recorded an adjusted operating loss of $6.7 million for the fourth quarter of this fiscal year, compared with an adjusted operating profit of $8.3 million in the prior year's fourth quarter. LIFO income for the segment decreased $2.8 million to $1.3 million in the fourth quarter of 2013, from $4.1 million in the fourth quarter of 2012. Ferrous volumes, selling prices and margins were all slightly higher during this year's fourth quarter. However, these increases were not enough to overcome declines in nonferrous volumes and pricing resulting in a $51/ton decline in nonferrous margins. In addition, we recognized a $2.0 million loss on a long-term supply contract with a customer during the fourth quarter of 2013.
Our Americas Mills segment recorded an adjusted operating profit of $58.4 million for the fourth quarter of 2013, compared with an adjusted operating profit of $63.0 million in the fourth quarter of 2012. This segment's volumes were lower by 7% while metal margins declined 2% in the fourth quarter of 2013. LIFO income for the segment decreased $12.1 million to $7.4 million in the fourth quarter of 2013, from $19.5 million in the fourth quarter of 2012. In comparison to the sequential quarter, adjusted operating profit improved by 26% primarily as a result of higher shipments.
Our Americas Fabrication segment recorded an adjusted operating profit of $8.2 million for the fourth quarter of 2013, marking a significant improvement over the prior year's fourth quarter adjusted operating profit of $1.5 million. These results were achieved despite a $2.9 million decrease in LIFO income for the segment when compared to the fourth quarter of 2012. This segment continued to experience margin expansion as input pricing declined while transactional selling prices improved when compared to the fourth quarter of 2012. Bid activity and bookings were also better in the fourth quarter of 2013 when compared to a year ago, resulting in a stronger backlog as we enter fiscal 2014.
Our International Mill segment recorded an adjusted operating profit of $8.0 million for the fourth quarter of 2013, compared with an adjusted operating profit of $5.4 million in the prior year's fourth quarter. These results were also a substantial improvement over the adjusted operating loss of $3.8 million reported in the third quarter of 2013. Total shipments in the fourth quarter of 2013 fell 12% while metal margins expanded 7% when compared to the same quarter in 2012. Market conditions in Europe continued to be soft, with certain countries showing marginal signs of improvement. On a positive note, the effects of the value-added tax (VAT) circumvention schemes that have recently negatively impacted this segment should subside as the long-awaited legislation in Poland went into effect on October 1, 2013.
Our International Marketing and Distribution segment recorded an adjusted operating loss of $16.2 million for the fourth quarter of 2013, compared with an adjusted operating profit of $1.5 million in the prior year's fourth quarter. The reduced profitability in the fourth quarter of 2013 was primarily the result of charges related to our Australian operations for goodwill and other asset impairments, as well as one-time exit costs to close unprofitable locations. Our U.S.-based trading divisions recorded improved results for the fourth quarter of 2013 when compared to the prior year's fourth quarter. Furthermore, our European trading division continued to suffer weakened results in response to the poor Euro zone market conditions.
Full Year 2013 Review
Net earnings from continuing operations for fiscal year 2013 were $75.0 million, or $0.64 per diluted share. For the year ended August 31, 2013, cash flow from operations was $147.7 million and adjusted EBITDA from continuing operations was $353.5 million. After-tax LIFO income from continuing operations for fiscal 2013 was $34.4 million ($0.29 per diluted share), compared to after-tax LIFO income of $27.1 million ($0.23 per diluted share) in fiscal 2012. As of August 31, 2013, cash and short-term investments totaled $378.8 million, an increase of 44% from the end of our 2012 fiscal year.
Earnings from discontinued operations for fiscal year 2013 were $2.4 million, which primarily consisted of earnings related to our copper tube business.
Outlook
Alvarado concluded, "We are encouraged by our ability to post another positive earnings quarter and strong cash flows even after factoring in restructuring charges recorded in our fiscal 2013 fourth quarter. From a U.S. perspective, we are further encouraged by the strength of the Architecture Billings Index (ABI), posting a 53.8 for August, the highest mark since February 2013. In addition, the ABI has been above 50 for 12 of the last 13 months which historically has been a good leading indicator of improved non-residential construction. Our International Mill segment should see an improvement in margins in light of the newly-passed legislation to curb VAT circumvention arrangements in Poland".
Conference Call
CMC invites you to listen to a live broadcast of its fourth quarter 2013 conference call today, Wednesday, October 23, 2013, at 11:00 a.m. ET. Joe Alvarado, Chairman of the Board, President and CEO, and Barbara Smith, Senior Vice President and CFO, 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 the webcast on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors".
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
Forward-Looking Statements
This news release contains forward-looking statements regarding the effects of actions taken to strengthen our Australian operations, the effects of recently enacted legislation regarding VAT circumvention schemes in Poland and general market conditions. There are inherent risks and uncertainties in any forward-looking statements. Variances will occur, and actual results may differ materially from our current expectations. Except as required by law, the Company undertakes 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 otherwise.
Factors that could cause actual results to differ materially from the Company's expectations include the following: absence of global economic recovery or possible recession relapse and the pace of overall global economic activity; solvency of financial institutions and their ability or willingness to lend; success or failure of governmental efforts to stimulate the economy including restoring credit availability and confidence in a recovery; continued sovereign debt problems in the Euro-zone; construction activity or lack thereof; availability and pricing of raw materials over which the Company exerts little influence, including scrap metal, energy, insurance and supply prices; increased capacity and product availability from competing steel minimills and other steel suppliers, including import quantities and pricing; decisions by governments affecting the level of steel imports; passage of new, or interpretation of existing, environmental laws and regulations; customers' inability to obtain credit and non-compliance with contracts; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; currency fluctuations; global factors including political and military uncertainties; difficulties or delays in the execution of construction contracts resulting in cost overruns or contract disputes; our ability to retain key executives; execution of cost reduction strategies; industry consolidation or changes in production capacity or utilization; ability to make necessary capital expenditures; unexpected equipment failures; competition from other materials; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions and regulatory rulings; risk of injury or death to employees, customers or other visitors to our operations; and increased costs related to health care reform legislation.
Three Months Ended |
Fiscal Year Ended |
||||||||||
(short tons in thousands) |
08/31/13 |
08/31/12 |
08/31/13 |
08/31/12 |
|||||||
Americas Recycling tons shipped |
588 |
582 |
2,312 |
2,439 |
|||||||
Americas Steel Mills rebar shipments |
381 |
384 |
1,447 |
1,370 |
|||||||
Americas Steel Mills structural and other shipments |
272 |
318 |
1,114 |
1,312 |
|||||||
Total Americas Steel Mills tons shipped |
653 |
702 |
2,561 |
2,682 |
|||||||
International Mill shipments |
371 |
420 |
1,318 |
1,584 |
|||||||
Americas Steel Mills average FOB selling price (total sales) |
$ |
656 |
$ |
678 |
$ |
669 |
$ |
706 |
|||
Americas Steel Mills average cost ferrous scrap utilized |
$ |
330 |
$ |
346 |
$ |
343 |
$ |
379 |
|||
Americas Steel Mills metal margin |
$ |
326 |
$ |
332 |
$ |
326 |
$ |
327 |
|||
Americas Steel Mills average ferrous scrap purchase price |
$ |
290 |
$ |
304 |
$ |
299 |
$ |
339 |
|||
International Mill average FOB selling price (total sales) |
$ |
567 |
$ |
570 |
$ |
589 |
$ |
601 |
|||
International Mill average cost ferrous scrap utilized |
$ |
333 |
$ |
351 |
$ |
360 |
$ |
385 |
|||
International Mill metal margin |
$ |
234 |
$ |
219 |
$ |
229 |
$ |
216 |
|||
International Mill average ferrous scrap purchase price |
$ |
267 |
$ |
291 |
$ |
289 |
$ |
315 |
|||
Americas Fabrication rebar shipments |
239 |
251 |
902 |
911 |
|||||||
Americas Fabrication structural and post shipments |
37 |
35 |
152 |
150 |
|||||||
Total Americas Fabrication tons shipped |
276 |
286 |
1,054 |
1,061 |
|||||||
Americas Fabrication average selling price (excluding stock and buyout sales) |
$ |
938 |
$ |
920 |
$ |
943 |
$ |
906 |
(in thousands) |
Three Months Ended |
Fiscal Year Ended |
||||||||||
Net sales |
08/31/13 |
08/31/12 |
08/31/13 |
08/31/12 |
||||||||
Americas Recycling |
$ |
346,671 |
$ |
359,300 |
$ |
1,391,749 |
$ |
1,606,161 |
||||
Americas Mills |
465,433 |
494,183 |
1,819,520 |
1,983,721 |
||||||||
Americas Fabrication |
384,333 |
380,951 |
1,442,691 |
1,381,638 |
||||||||
International Mill |
223,460 |
268,248 |
826,044 |
1,033,357 |
||||||||
International Marketing and Distribution |
503,244 |
610,485 |
2,355,572 |
2,727,319 |
||||||||
Corporate and Eliminations |
(224,280) |
(280,141) |
(946,001) |
(1,075,821) |
||||||||
Total net sales |
$ |
1,698,861 |
$ |
1,833,026 |
$ |
6,889,575 |
$ |
7,656,375 |
||||
Adjusted operating profit (loss) |
||||||||||||
Americas Recycling |
$ |
(6,722) |
$ |
8,346 |
$ |
3,170 |
$ |
39,446 |
||||
Americas Mills |
58,431 |
62,971 |
204,333 |
235,918 |
||||||||
Americas Fabrication |
8,154 |
1,453 |
28,033 |
(15,697) |
||||||||
International Mill |
7,998 |
5,353 |
890 |
23,044 |
||||||||
International Marketing and Distribution |
(16,220) |
1,488 |
35,617 |
47,287 |
||||||||
Corporate and Eliminations |
(14,987) |
(16,359) |
(65,605) |
(89,286) |
||||||||
Adjusted operating profit from continuing operations |
36,654 |
63,252 |
206,438 |
240,712 |
||||||||
Adjusted operating profit (loss) from discontinued operations |
429 |
12,213 |
3,672 |
(10,660) |
||||||||
Adjusted operating profit (loss) |
$ |
37,083 |
$ |
75,465 |
$ |
210,110 |
$ |
230,052 |
COMMERCIAL METALS COMPANY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
||||||||||||
Three Months Ended |
Fiscal Year Ended, |
|||||||||||
(in thousands, except share data) |
08/31/13 |
08/31/12 |
08/31/13 |
08/31/12 |
||||||||
Net sales |
$ |
1,698,861 |
$ |
1,833,026 |
$ |
6,889,575 |
$ |
7,656,375 |
||||
Costs and expenses: |
||||||||||||
Cost of goods sold |
1,538,073 |
1,653,588 |
6,227,238 |
6,939,748 |
||||||||
Selling, general and administrative expenses |
111,070 |
117,027 |
468,611 |
481,746 |
||||||||
Impairment of assets |
13,836 |
528 |
17,270 |
607 |
||||||||
Gain on sale of cost method investment |
— |
— |
(26,088) |
— |
||||||||
Interest expense |
18,051 |
17,550 |
69,608 |
69,487 |
||||||||
1,681,030 |
1,788,693 |
6,756,639 |
7,491,588 |
|||||||||
Earnings from continuing operations before income taxes |
17,831 |
44,333 |
132,936 |
164,787 |
||||||||
Income taxes (benefit) |
14,103 |
26,518 |
57,979 |
(45,762) |
||||||||
Earnings from continuing operations |
3,728 |
17,815 |
74,957 |
210,549 |
||||||||
Earnings (loss) from discontinued operations before taxes |
429 |
12,212 |
3,672 |
(11,906) |
||||||||
Income taxes (benefit) |
97 |
(191) |
1,310 |
(8,847) |
||||||||
Earnings (loss) from discontinued operations |
332 |
12,403 |
2,362 |
(3,059) |
||||||||
Net earnings |
4,060 |
30,218 |
77,319 |
207,490 |
||||||||
Less net earnings attributable to noncontrolling interests |
3 |
3 |
4 |
6 |
||||||||
Net earnings attributable to CMC |
$ |
4,057 |
$ |
30,215 |
$ |
77,315 |
$ |
207,484 |
||||
Basic earnings (loss) per share attributable to CMC: |
||||||||||||
Earnings from continuing operations |
$ |
0.03 |
$ |
0.15 |
$ |
0.64 |
$ |
1.82 |
||||
Earnings (loss) from discontinued operations |
— |
0.11 |
0.02 |
(0.03) |
||||||||
Net earnings |
$ |
0.03 |
$ |
0.26 |
$ |
0.66 |
$ |
1.79 |
||||
Diluted earnings (loss) per share attributable to CMC: |
||||||||||||
Earnings from continuing operations |
$ |
0.03 |
$ |
0.15 |
$ |
0.64 |
$ |
1.80 |
||||
Earnings (loss) from discontinued operations |
— |
0.11 |
0.02 |
(0.02) |
||||||||
Net earnings |
$ |
0.03 |
$ |
0.26 |
$ |
0.66 |
$ |
1.78 |
||||
Cash dividends per share |
$ |
0.12 |
$ |
0.12 |
$ |
0.48 |
$ |
0.48 |
||||
Average basic shares outstanding |
116,943,198 |
116,267,566 |
116,677,836 |
115,861,986 |
||||||||
Average diluted shares outstanding |
117,841,538 |
116,904,863 |
117,552,952 |
116,783,160 |
COMMERCIAL METALS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
||||||
(in thousands) |
August 31, |
August 31, |
||||
Assets |
||||||
Current assets: |
||||||
Cash and cash equivalents |
$ |
378,770 |
$ |
262,422 |
||
Accounts receivable, net |
989,694 |
958,364 |
||||
Inventories, net |
757,417 |
807,923 |
||||
Other |
240,314 |
211,122 |
||||
Total current assets |
2,366,195 |
2,239,831 |
||||
Net property, plant and equipment |
940,237 |
994,304 |
||||
Goodwill |
69,579 |
76,897 |
||||
Other assets |
118,790 |
130,214 |
||||
Total assets |
$ |
3,494,801 |
$ |
3,441,246 |
||
Liabilities and stockholders' equity |
||||||
Current liabilities: |
||||||
Accounts payable-trade |
$ |
342,678 |
$ |
433,132 |
||
Accounts payable-documentary letters of credit |
112,281 |
95,870 |
||||
Accrued expenses and other payables |
314,949 |
343,337 |
||||
Notes payable |
5,973 |
24,543 |
||||
Current maturities of long-term debt |
5,228 |
4,252 |
||||
Total current liabilities |
781,109 |
901,134 |
||||
Deferred income taxes |
46,558 |
20,271 |
||||
Other long-term liabilities |
118,165 |
116,261 |
||||
Long-term debt |
1,278,814 |
1,157,073 |
||||
Total liabilities |
2,224,646 |
2,194,739 |
||||
Stockholders' equity attributable to CMC |
1,269,999 |
1,246,368 |
||||
Stockholders' equity attributable to noncontrolling interests |
156 |
139 |
||||
Total equity |
1,270,155 |
1,246,507 |
||||
Total liabilities and stockholders' equity |
$ |
3,494,801 |
$ |
3,441,246 |
COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||||
Fiscal Year Ended |
||||||
(in thousands) |
08/31/13 |
08/31/12 |
||||
Cash flows from (used by) operating activities: |
||||||
Net earnings |
$ |
77,319 |
$ |
207,490 |
||
Adjustments to reconcile net earnings to cash flows from (used by) operating activities: |
||||||
Depreciation and amortization |
136,548 |
137,310 |
||||
Provision for losses (recoveries) on receivables, net |
4,430 |
(2,463) |
||||
Share-based compensation |
18,693 |
13,125 |
||||
Amortization of interest rate swaps termination gain |
(12,470) |
(5,815) |
||||
Loss on debt extinguishment |
4,758 |
— |
||||
Deferred income taxes (benefit) |
55,825 |
(59,999) |
||||
Tax expense (benefit) from stock plans |
1,444 |
(1,968) |
||||
Net gain on sale of assets and other |
(25,371) |
(11,932) |
||||
Write-down of inventory |
3,003 |
13,917 |
||||
Asset impairments |
17,270 |
3,316 |
||||
Changes in operating assets and liabilities, net of acquisitions: |
||||||
Accounts receivable |
11,065 |
68,260 |
||||
Accounts receivable (repurchased), net |
(80,580) |
(77,116) |
||||
Inventories |
26,459 |
53,449 |
||||
Other assets |
1,724 |
5,001 |
||||
Accounts payable, accrued expenses and other payables |
(87,375) |
(157,025) |
||||
Other long-term liabilities |
(5,010) |
10,443 |
||||
Net cash flows from operating activities |
147,732 |
195,993 |
||||
Cash flows from (used by) investing activities: |
||||||
Capital expenditures |
(89,035) |
(113,853) |
||||
Proceeds from the sale of property, plant and equipment and other |
13,904 |
55,360 |
||||
Proceeds from the sale of cost method investment |
28,995 |
— |
||||
Decrease in deposit for letters of credit |
— |
31,053 |
||||
Net cash flows used by investing activities |
(46,136) |
(27,440) |
||||
Cash flows from (used by) financing activities: |
||||||
Increase (decrease) in documentary letters of credit |
(6,221) |
(74,493) |
||||
Short-term borrowings, net change |
(19,524) |
18,607 |
||||
Repayments on long-term debt |
(204,856) |
(64,801) |
||||
Proceeds from termination of interest rate swaps |
— |
52,733 |
||||
Proceeds from issuance of long-term debt |
330,000 |
— |
||||
Payments for debt issuance costs |
(4,684) |
— |
||||
Debt extinguishment costs |
(4,557) |
— |
||||
Increase in restricted cash |
(18,620) |
— |
||||
Stock issued under incentive and purchase plans, net of forfeitures |
951 |
(81) |
||||
Cash dividends |
(56,028) |
(55,617) |
||||
Tax benefit (expense) from stock plans |
(1,444) |
1,968 |
||||
Contribution from (purchase of) noncontrolling interests |
13 |
(55) |
||||
Net cash flows from (used by) financing activities |
15,030 |
(121,739) |
||||
Effect of exchange rate changes on cash |
(278) |
(6,782) |
||||
Increase in cash and cash equivalents |
116,348 |
40,032 |
||||
Cash and cash equivalents at beginning of year |
262,422 |
222,390 |
||||
Cash and cash equivalents at end of year |
$ |
378,770 |
$ |
262,422 |
COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
(dollars in thousands)
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.
Adjusted Operating Profit (Loss) is a non-GAAP financial measure. Management uses adjusted operating profit (loss) to evaluate the financial performance of the Company. Adjusted operating profit (loss) is the sum of our earnings (loss) before income taxes, outside financing costs and discounts on sales of accounts receivable. For added flexibility, we may sell certain accounts receivable both in the U.S. and internationally. We consider sales of receivables as an alternative source of liquidity to finance our operations and believe that removing these costs provides a clearer perspective of the Company's operating performance. Adjusted operating profit (loss) may be inconsistent with similar measures presented by other companies.
Three Months Ended |
Fiscal Year Ended, |
||||||||||
(in thousands) |
08/31/13 |
08/31/12 |
08/31/13 |
08/31/12 |
|||||||
Earnings from continuing operations |
3,728 |
$ |
17,815 |
$ |
74,957 |
$ |
210,549 |
||||
Income taxes (benefit) |
14,103 |
26,518 |
57,979 |
(45,762) |
|||||||
Interest expense |
18,051 |
17,550 |
69,608 |
69,487 |
|||||||
Discounts on sales of accounts receivable |
772 |
1,369 |
3,894 |
6,438 |
|||||||
Adjusted operating profit from continuing operations |
36,654 |
63,252 |
206,438 |
240,712 |
|||||||
Adjusted operating profit (loss) from discontinued operations |
429 |
12,213 |
3,672 |
(10,660) |
|||||||
Adjusted operating profit (loss) |
$ |
37,083 |
$ |
75,465 |
$ |
210,110 |
$ |
230,052 |
Adjusted EBITDA is a non-GAAP financial measure. Adjusted EBITDA is the sum of our earnings (loss) before income taxes, outside financing costs and net earnings attributable to noncontrolling interests. It also excludes the Company's largest recurring non-cash charge, depreciation and amortization, as well as impairment charges. As a measure of cash flow before interest expense, adjusted EBITDA is one guideline management uses to assess the Company's ability to pay its current debt obligations as they mature and as a tool to calculate possible future levels of leverage capacity. Adjusted EBITDA to interest is a covenant test in certain of the Company's debt agreements. Additionally, adjusted EBITDA is one measure used to assess the Company's unleveraged performance return on its investments. Adjusted EBITDA is also the target benchmark for our annual and long-term cash incentive performance plans for management. Adjusted EBITDA may be inconsistent with similar measures presented by other companies.
Three Months Ended |
Fiscal Year Ended, |
|||||||||||
(in thousands) |
08/31/13 |
08/31/12 |
08/31/13 |
08/31/12 |
||||||||
Earnings from continuing operations |
3,728 |
$ |
17,815 |
$ |
74,957 |
$ |
210,549 |
|||||
Income taxes (benefit) |
14,103 |
26,518 |
57,979 |
(45,762) |
||||||||
Interest expense |
18,051 |
17,550 |
69,608 |
69,487 |
||||||||
Depreciation, amortization and impairment charges |
47,539 |
33,189 |
151,002 |
134,442 |
||||||||
Less net earnings attributable to noncontrolling interests |
(3) |
(3) |
(4) |
(6) |
||||||||
Adjusted EBITDA from continuing operations |
83,418 |
95,069 |
353,542 |
368,710 |
||||||||
Adjusted EBITDA from discontinued operations |
1,109 |
14,082 |
6,487 |
(4,475) |
||||||||
Adjusted EBITDA |
$ |
84,527 |
$ |
109,151 |
$ |
360,029 |
$ |
364,235 |
Adjusted EBITDA to interest coverage: |
|||||||||||||
Three Months Ended August 31, 2013 |
Year Ended August 31, 2013 |
||||||||||||
$84,527 |
/ |
18,051 |
= |
4.7 |
$360,029 |
/ |
69,608 |
= |
5.2 |
Total Capitalization:
Total capitalization is the sum of long-term debt, deferred income taxes, and stockholders' equity. The ratio of debt to total capitalization is a measure of current debt leverage. The following reconciles total capitalization on August 31, 2013 to the most comparable GAAP measure, stockholders' equity:
Stockholders' equity attributable to CMC |
$ |
1,269,999 |
|
Long-term debt |
1,278,814 |
||
Deferred income taxes |
46,558 |
||
Total capitalization |
$ |
2,595,371 |
OTHER FINANCIAL INFORMATION
Long-term debt to capitalization ratio as of August 31, 2013:
$ |
1,278,814 |
/ |
2,595,371 |
= |
49.3% |
Total debt to capitalization plus short-term debt plus notes payable ratio as of August 31, 2013:
($1,278,814 |
+ |
5,228 |
+ |
5,973) |
/ |
($2,595,371 |
+ |
5,228 |
+ |
5,973) |
= |
49.5% |
Current ratio as of August 31, 2013:
Current assets divided by current liabilities
$2,366,195 |
/ |
781,109 |
= |
3.0 |
SOURCE Commercial Metals Company
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