Gerdau Ameristeel Announces 2009 Fourth Quarter and Year End Results
TAMPA, FL, Feb. 25 /PRNewswire-FirstCall/ - Gerdau Ameristeel Corporation (NYSE: GNA; TSX: GNA) today reported a net loss of $46.1 million ($0.11 per share) for the three months ended December 31, 2009, in comparison to a net loss of $25.4 million ($0.06 per share) for the three months ended September 30, 2009 and $1.3 billion ($3.08 per share) for the three months ended December 31, 2008. Included in the results for the three months ended December 31, 2009 is a pre-tax charge of $12.2 million related to the write-off of deferred financing costs and a pre-tax gain on sale of investments of $3.2 million. Excluding these adjustments, Non-GAAP Adjusted Net Loss was $40.3 million ($0.09 per share) for the three months ended December 31, 2009.
For the year ended December 31, 2009, the Company incurred a net loss of $161.7 million ($0.37 per share) compared to a net loss of $587.4 million ($1.36 per share) for the year ended December 31, 2008. Included in the current year results is a $115.0 million pre-tax charge related to actions announced earlier this year to stop production at certain of the Company's steel mills, a pre-tax charge of $12.2 million related to the writedown of deferred financing costs, a pre-tax charge of $11.9 million related to the early extinguishment of certain debt obligations and a pre-tax gain on the sale of investments of $3.2 million. Excluding these adjustments, the Non-GAAP Adjusted Net Loss was $73.3 million ($0.17 per share) for the year ended December 31, 2009. This compares to Non-GAAP Adjusted Net Income of $718.0 million ($1.67 per share fully diluted) for the year ended December 31, 2008.
Net sales for the three months ended December 31, 2009 decreased 9% to $1.0 billion from $1.1 billion for the three months ended September 30, 2009, and decreased 29% from $1.4 billion for the three months ended December 31, 2008. Weighted average mill selling price decreased 2% or $13 per ton in comparison to the three months ended September 30, 2009 and decreased 33% or $296 per ton in comparison to the three months ended December 31, 2008. Finished steel shipments were 1.3 million tons, a decrease of 14% or 210,000 tons from the three months ended September 30, 2009 and a decrease of 4% or 55,000 tons from the three months ended December 31, 2008.
Net sales for the year ended December 31, 2009 were $4.2 billion compared to net sales of $8.5 billion for the year ended December 31, 2008. Weighted average mill selling price for the year ended December 31, 2009 decreased 28% or $247 per ton compared to the same period in 2008 while finished steel shipments decreased 36% to 5.3 million tons for the year ended December 31, 2009 compared to 8.3 million tons for the same period in 2008.
EBITDA was $43.8 million for the three months ended December 31, 2009, compared to EBITDA of $163.0 million for the three months ended September 30, 2009 and $19.4 million for the three months ended December 31, 2008. For the year ended December 31, 2009, EBITDA was $320.3 million compared to EBITDA of $1.5 billion for the year ended December 31, 2008.
During the three months and year ended December 31, 2009, the Company incurred a foreign exchange loss of $7.4 million and $37.9 million, respectively, as the Canadian dollar strengthened approximately 4% and 16% in comparison to the US dollar. This charge arose from the revaluation of US dollar investments held by the Company's Canadian entities.
During December 2009, the Company entered into a new $650 million senior secured asset-based revolving credit facility. The facility replaced the Company's $950 million asset-based credit facility that would have matured in October 2010. The new facility is scheduled to mature in December 2012. In addition, the Company entered into a $610 million loan agreement with Gerdau Holdings Inc., a subsidiary of Gerdau S.A. The loan bears interest at 7.95%, is payable semi-annually, has no scheduled principal payment prior to maturity, and will mature in January 2020. The net proceeds of the Gerdau Holdings, Inc. loan plus an additional $300 million of cash were used to prepay $910 million of the Term Loan Facility.
At December 31, 2009, the Company had $656.3 million of cash and short-term investments, a decrease of $32.1 million from the levels at December 31, 2008. Excluding both the cash paid by the Company to redeem its $405 million 10 3/8% Senior Notes in August 2009 and the above mentioned $300 million debt prepayment, the Company generated $680.2 million in cash and short-term investments in 2009. In addition to its cash and short-term investments, the Company had approximately $420.2 million available under secured credit facilities which resulted in a total liquidity position of approximately $1.1 billion at December 31, 2009.
CEO Comments
Mario Longhi, President and CEO of Gerdau Ameristeel, commented:
"While 2009 was certainly a challenging year for the steel industry, we took a number of actions to better position us for the future. In regard to our operations, we reduced our cost structure and implemented processes to better maximize productivity across our network of facilities and we worked very closely with our customer base during these difficult times to enhance our long-term relationships. From a financial standpoint, using our significant cash generation, we improved the strength of our balance sheet by reducing our debt by $709 million and extending maturities.
Some of the benefits of these actions were evidenced in the fourth quarter 2009 results. By focusing on what we control, when comparing the fourth quarter of 2009 to the same period of 2008, we improved EBITDA by $24 million despite facing a decline in selling prices and shipment volumes of 33% and 4%, respectively. I am proud to say that these successes were achieved as a result of the dedication of our teams delivering exceptional performance during these difficult times.
While minimal stimulus dollars were spent during 2009, we believe that more infrastructure projects will be undertaken during 2010. In addition, there are certain segments such as the nuclear power industry which we believe will begin committing significant investments to modernize the aging infrastructure in North America. We believe that these factors, along with low customer inventory levels and increases in shipments and selling prices that have occurred since the end of 2009, give us reason to enter 2010 with optimism for a better year."
IFRS Conversion
In 2008, the Canadian Accounting Standards Board confirmed that Canadian publicly accountable enterprises will be required to adopt International Financial Reporting Standards ("IFRS") for interim and annual financial statements related to fiscal years beginning on or after January 1, 2011. In accordance with the approval granted by the Canadian securities regulatory authorities, the Company expects to adopt IFRS in 2010.
Forward Looking Statements
In this press release, "Gerdau Ameristeel" and "Company" refer to Gerdau Ameristeel Corporation and its subsidiaries and 50%-owned joint ventures. Certain statements in this press release, including, without limitation, the section entitled "CEO Comments" constitute forward-looking statements. Such statements describe the Company's assumptions, beliefs and expectations with respect to its operations, future financial results, business strategies and growth and expansion plans can often be identified by the words "anticipates," "believes," "estimates," "expects," "intends," "plans," and other words and terms of similar meaning. The Company cautions readers that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those currently projected by the Company. In addition to those noted in the statements themselves, any number of factors could affect actual results, including, without limitation:
Excess global steel industry capacity and the availability of competitive substitute materials; the cyclical nature of the steel industry and the industries served by the Company and economic conditions in North America and worldwide; increases in the cost of steel scrap, energy and other raw materials; steel imports and trade regulations; a change in China's steelmaking capacity or slowdown in China's steel consumption; the Company's participation in the consolidation of the steel industry; the substantial capital investment and similar expenditures required in the Company's business; unexpected equipment failures and plant interruptions or outages; the Company's level of indebtedness; the cost of compliance with environmental and occupational health and safety laws; the enactment of laws intended to reduce greenhouse gases and other air emissions; the Company's ability to fund its pension plans; the ability to renegotiate collective bargaining agreements and avoid labor disruptions; currency exchange rate fluctuations; actions or potential actions taken by the Company's principal stockholder, Gerdau S.A., the liquidity of the Company's long-term investments, including investments in auction rate securities, and the Company's reliance on its 50%-owned joint ventures that it does not control.
Any forward-looking statements in this press release are based on current information as of the date of this press release and the Company does not undertake any obligation to update any forward-looking statements to reflect new information, future developments or events, except as required by law.
Notice of Conference Call
Gerdau Ameristeel invites you to listen to a live broadcast of its fourth quarter conference call on Thursday, February 25, 2010, at 2:30 pm EST. The call will be hosted by Mario Longhi, President and CEO, and Barbara Smith, VP and CFO, and can be accessed via our Web site at www.gerdauameristeel.com. Web cast attendees are welcome to listen to the conference in real-time or on-demand at your convenience.
About Gerdau Ameristeel
Gerdau Ameristeel is the second largest mini-mill steel producer in North America, with annual manufacturing capacity of approximately 12 million tons of mill finished steel products. Through its vertically integrated network of mini-mills, scrap recycling facilities and downstream operations, Gerdau Ameristeel serves customers throughout the United States and Canada. The Company's products are generally sold to steel service centers, steel fabricators, or directly to original equipment manufacturers ("OEMs") for use in a variety of industries, including non-residential, infrastructure, commercial, industrial and residential construction, metal building, manufacturing, automotive, mining, cellular and electrical transmission and equipment manufacturing. Gerdau Ameristeel's majority shareholder is the Gerdau Group, a 100+ year old steel company, the leading company in the production of long steel in the Americas and one of the major specialty long steel suppliers in the world. Gerdau Ameristeel's common shares are traded on the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol GNA.
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31, December 31, December 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
NET SALES $ 975,926 $ 1,436,596 $ 4,195,723 $ 8,528,480
OPERATING EXPENSES
Cost of sales
(exclusive of
depreciation and
amortization) 885,927 1,340,029 3,656,083 6,799,427
Selling and
administrative 55,134 65,840 227,683 253,222
Depreciation 56,456 60,090 214,106 219,667
Amortization of
intangibles 16,162 26,283 65,736 102,959
Impairment of goodwill - 1,278,000 - 1,278,000
Facility closure costs - - 115,033 -
Other operating
expense, net 1,049 11,347 3,520 8,293
------------ ------------ ------------ ------------
1,014,728 2,781,589 4,282,161 8,661,568
LOSS FROM OPERATIONS (38,802) (1,344,993) (86,438) (133,088)
(LOSS) INCOME FROM 50%
OWNED JOINT VENTURES 7,156 (39,162) (4,692) 45,005
------------ ------------ ------------ ------------
LOSS BEFORE OTHER
EXPENSES AND INCOME
TAXES (31,646) (1,384,155) (91,130) (88,083)
OTHER EXPENSES
Interest expense -
non-affilliated 26,425 40,180 132,166 165,607
Interest expense -
affilliated 3,772 - 3,772 -
Interest income (730) (2,764) (5,040) (14,921)
Amortization of
deferred financing
costs 15,083 2,790 24,274 10,951
Loss on extinguishment
of debt - - 11,877 -
Foreign exchange (gain)
loss, net 7,371 (13,226) 37,914 (21,682)
Realized (gain) loss on
investments, net (3,244) 13,276 (3,244) 59,977
------------ ------------ ------------ ------------
48,677 40,256 201,719 199,932
LOSS BEFORE INCOME TAXES (80,323) (1,424,411) (292,849) (288,015)
INCOME TAX (BENEFIT)
EXPENSE (32,729) (97,320) (128,576) 287,440
------------ ------------ ------------ ------------
NET LOSS (47,594) (1,327,091) (164,273) (575,455)
Less: Net Income (Loss)
attributable to
noncontrolling
interest $ (1,496) $ 2,329 $ (2,557) $ 11,952
------------ ------------ ------------ ------------
NET LOSS ATTRIBUTABLE
TO GERDAU AMERISTEEL
& SUBSIDIARIES $ (46,098) $(1,329,420) $ (161,716) $ (587,407)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
LOSS PER COMMON SHARE
- BASIC $ (0.11) $ (3.08) $ (0.37) $ (1.36)
LOSS PER COMMON SHARE
- DILUTED $ (0.11) $ (3.08) $ (0.37) $ (1.36)
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(US$ in thousands, except earnings per share data)
December 31, December 31,
2009 2008
------------ ------------
ASSETS
Current Assets
Cash and cash equivalents $ 631,293 $ 482,535
Restricted cash 1,691 -
Short-term investments 25,000 205,817
Accounts receivable, net 460,066 677,569
Inventories 814,788 1,267,768
Deferred tax assets 20,742 31,414
Costs and estimated earnings in excess of
billings on uncompleted contracts 4,687 14,771
Income taxes receivable 93,652 28,455
Other current assets 22,643 22,936
------------ ------------
Total Current Assets 2,074,562 2,731,265
Investments in 50% Owned Joint Ventures 148,609 161,901
Long-term Investments 28,538 33,189
Property, Plant and Equipment, net 1,620,852 1,808,478
Goodwill 1,962,098 1,952,011
Intangibles 450,003 515,736
Deferred Financing Costs 29,084 35,170
Deferred Tax Assets 29,760 -
Other Assets 23,459 32,305
------------ ------------
TOTAL ASSETS $ 6,366,965 $ 7,270,055
------------ ------------
------------ ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 212,900 $ 182,697
Accrued salaries, wages and employee benefits 93,846 148,244
Accrued interest - non-affiliated 15,344 54,480
Accrued interest - affiliated 3,772 -
Income taxes payable 322 2,983
Accrued sales, use and property taxes 11,889 13,902
Current portion of long-term environmental reserve 4,906 7,599
Billings in excess of costs and estimated
earnings on uncompleted contracts 26,212 45,687
Other current liabilities 12,959 20,932
Current portion of long-term debt 3,174 1,893
------------ ------------
Total Current Liabilities 385,324 478,417
Long-term Debt, Less Current
Portion - Non-affiliated 1,747,601 3,067,994
Long-term Debt - Affiliated 610,000 -
Accrued Benefit Obligations 348,684 339,055
Deferred Tax Liabilities 300,253 323,854
Long-term Environmental Reserve, Less Current
Portion 14,415 11,151
Other Liabilities 89,753 116,092
------------ ------------
TOTAL LIABILITIES 3,496,030 4,336,563
------------ ------------
Contingencies, Commitments and Guarantees
Shareholders' Equity
Capital stock 2,554,110 2,552,323
Retained earnings 352,825 523,187
Accumulated other comprehensive loss (65,898) (178,636)
------------ ------------
Total Gerdau Ameristeel & Subsidiaries
Shareholders' equity 2,841,037 2,896,874
Noncontrolling interest 29,898 36,618
------------ ------------
TOTAL SHAREHOLDERS' EQUITY 2,870,935 2,933,492
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 6,366,965 $ 7,270,055
------------ ------------
------------ ------------
GERDAU AMERISTEEL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(US$ in thousands, except earnings per share data)
(Unaudited)
Three Months Ended Year Ended
December 31, December 31,
------------------------- -------------------------
2009 2008 2009 2008
------------ ------------ ------------ ------------
OPERATING ACTIVITIES
Net (loss) $ (47,594) $(1,327,091) $ (164,273) $ (575,455)
Adjustment to reconcile
net loss to net cash
provided by operating
activities:
Depreciation 56,456 60,090 214,106 219,667
Impairment of goodwill - 1,278,000 - 1,278,000
Amortization of
intangibles 16,162 26,283 65,736 102,959
Amortization of
deferred financing
costs 15,083 2,790 24,274 10,951
Deferred income taxes (34,985) (16,486) (42,123) (35,559)
Loss on disposition
of property, plant
and equipment 547 3,284 2,322 3,322
(Income) loss from
50% owned joint
ventures (7,156) 39,162 4,692 (45,005)
Distributions from
50% owned joint
ventures 10,000 - 11,828 41,829
Compensation cost
(benefit) from
share-based awards 2,182 (3,513) 6,474 2,464
Excess tax benefits
from share-based
payment arrangements (6) (29) (135) (1,200)
Realized (gain) loss
on investments, net (3,244) 13,276 (3,244) 59,977
Facility closure costs - 6,702 115,033 7,807
Loss on extinguishment
of debt - - 11,877 -
Writedown of inventory - 45,179 33,044 48,116
Changes in operating
assets and liabilities,
net of acquisitions:
Accounts receivable 93,258 421,239 227,323 101,941
Inventories 83,075 376,113 433,702 (147,544)
Other assets (54,331) 13,708 (46,646) 11,020
Liabilities 9,561 (441,659) (139,970) (315,298)
------------ ------------ ------------ ------------
NET CASH PROVIDED BY
OPERATING ACTIVITIES 139,008 497,048 754,020 767,992
INVESTING ACTIVITIES
Purchases of property,
plant and equipment (7,092) (55,068) (78,086) (168,117)
Proceeds from
disposition of property,
plant and equipment 277 1,381 1,804 3,261
Acquisitions - (69,903) - (287,560)
Opening cash from
acquisitions - 2,249 - 2,249
Change in restricted
cash 879 - (1,691) -
Purchases of
investments (14,994) (207,516) (632,183) (207,516)
Proceeds from sales of
investments 135,946 725 831,096 1,425
------------ ------------ ------------ ------------
NET CASH PROVIDED BY
(USED IN) INVESTING
ACTIVITIES 115,016 (328,132) 120,940 (656,258)
FINANCING ACTIVITIES
Proceeds from issuance
of debt - non-
affiliated - 577 - 1,076
Proceeds from issuance
of debt - affiliated 610,000 - 610,000 -
Repayments of
non-affiliated debt (910,027) (106) (1,327,499) (4,394)
Payments of deferred
financing costs (8,656) 51 (21,887) (1,635)
Cash dividends - (8,646) (8,646) (142,602)
Distributions to
subsidiary's
noncontrolling
interest - - (4,163) (3,065)
Proceeds from
exercise of employee
stock options 4 51 216 1,195
Excess tax benefits
from share-based
payment arrangements 6 29 135 1,200
------------ ------------ ------------ ------------
NET CASH USED IN
FINANCING ACTIVITIES (308,673) (8,044) (751,844) (148,225)
Effect of exchange rate
changes on cash and
cash equivalents 1,385 (21,538) 25,642 (28,336)
------------ ------------ ------------ ------------
INCREASE (DECREASE) IN
CASH AND CASH
EQUIVALENTS (53,264) 139,334 148,758 (64,827)
CASH AND CASH
EQUIVALENTS AT
BEGINNING OF PERIOD 684,557 343,201 482,535 547,362
------------ ------------ ------------ ------------
CASH AND CASH
EQUIVALENTS AT END OF
PERIOD $ 631,293 $ 482,535 $ 631,293 $ 482,535
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
SUPPLEMENTAL INFORMATION
Cash (refunds)
payments for income
taxes $ (918) $ 6,763 $ (20,895) $ 338,659
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Cash payments for
interest $ 7,634 $ 2,160 $ 164,558 $ 155,567
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Non-GAAP Financial Measures
Non-GAAP Adjusted Net Loss and loss per share, which excludes the impact of the impairment of goodwill, facility closure costs, the loss on extinguishment of debt, writedown of deferred financing costs and the writedown of investments is a non-GAAP financial measure. Management believes that it is useful as a supplemental measure in assessing the operating performance of the business. The measure is used by the Company to evaluate business results. The Company excludes the impairment of goodwill, facility closure costs, the loss on extinguishment of debt, writedown of deferred financing costs and the writedown of investments because it believes they are not representative of the ongoing results of operations of the Company's business. Below is a reconciliation of this Non-GAAP measure to net loss for the periods indicated, excluding the impairment of goodwill, facility closure costs, the loss on extinguishment of debt, writedown of deferred financing costs and writedown of investments.
For the Three Months For the Three Months
Ended - Unaudited Ended - Unaudited
December 31, December 31,
2009 Diluted EPS 2008 Diluted EPS
------------ ------------ ------------ ------------
($000s)
Reconciliation of net
loss to Non-GAAP
Adjusted
Net Loss:
Net loss
attributable to
Gerdau Ameristeel
& Subsidiaries $ (46,098) $ (0.11) $(1,329,420) $ (3.08)
Adjustment for
impairment of
goodwill - - 1,278,000 2.96
Adjustment for
income tax on
impairment of
goodwill - - (32,620) (0.08)
Adjustment for
writedown of
deferred financing
costs 12,158 0.03 - -
Adjustment for income
tax on writedown of
deferred financing
costs (4,667) (0.01) - -
Adjustment for
realized (gain) loss
on investments, net (3,244) (0.01) 13,276 0.03
Adjustment for income
tax on realized
(gain) loss on
investments, net 1,548 0.01 - -
------------ ------------ ------------ ------------
Non-GAAP Adjusted
Net Loss and loss
per share $ (40,303) $ (0.09) $ (70,764) $ (0.16)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
For the Year For the Year
Ended - Unaudited Ended - Unaudited
December 31, December 31,
2009 Diluted EPS 2008 Diluted EPS
------------ ------------ ------------ ------------
($000s)
Reconciliation of net
loss to Non-GAAP
Adjusted
Net (Loss) Income:
Net loss
attributable to
Gerdau Ameristeel
& Subsidiaries $ (161,716) $ (0.37) $ (587,407) $ (1.36)
Adjustment for
impairment of
goodwill - - 1,278,000 2.96
Adjustment for
income tax on
impairment of
goodwill - - (32,620) (0.07)
Adjustment for
facility closure
costs 115,033 0.26 - -
Adjustment for
income tax on
facility closure
costs (36,723) (0.09) - -
Adjustment for loss
on extinguishment
of debt 11,877 0.03 - -
Adjustment for income
tax on loss on
extinguishment of
debt (7,518) (0.02) - -
Adjustment for
writedown of
deferred financing
costs 12,158 0.03 - -
Adjustment for income
tax on writedown of
deferred financing
costs (4,667) (0.01) - -
Adjustment for
realized (gain) loss
on investments, net (3,244) (0.01) 59,977 0.14
Adjustment for income
tax on realized
(gain) loss on
investments, net 1,548 0.01 - -
------------ ------------ ------------ ------------
Non-GAAP Adjusted
Net (Loss) Income
and (loss)
earnings per
share $ (73,252) $ (0.17) $ 717,950 $ 1.67
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
EBITDA (EBITDA is calculated by adding (loss) earnings before interest and other expense on debt, taxes, depreciation and amortization, investment realized gain (loss), net, minority interest, cash distributions from 50% owned joint ventures, impairment of goodwill, facility closure costs, loss on extinguishment of debt and foreign exchange gain/loss, net; and deducting interest income and earnings from 50% owned joint ventures) is a non-GAAP measure that management believes is a useful supplemental measure of cash available prior to debt service, capital expenditures and income tax. Investors are cautioned that EBITDA should not be construed as an alternative to net income determined in accordance with GAAP as an indicator of the Company's performance or to cash flows from operations as a measure of liquidity and cash flows. EBITDA does not have a standardized meaning prescribed by GAAP. The Company's method of calculating EBITDA may differ from the methods used by other companies and, accordingly, it may not be comparable to similarly titled measures used by other companies. Reconciliation of EBITDA to net income is shown below:
For the Three Months
Ended - Unaudited
December 31, December 31,
2009 2008
------------ ------------
($000s)
Net loss $ (47,594) $(1,327,091)
Income tax (benefit) expense (32,729) (97,320)
Interest expense - non-affiliated 26,425 40,180
Interest expense - affiliated 3,772 -
Interest income (730) (2,764)
Depreciation 56,456 60,090
Amortization of intangibles 16,162 26,283
Impairment of goodwill - 1,278,000
Amortization of deferred financings costs 15,083 2,790
Loss (income) from 50% owned joint ventures (7,156) 39,162
Cash distribution from 50% owned joint ventures 10,000 -
Foreign exchange (gain) loss, net 7,371 (13,226)
Realized (gain) loss on investments, net (3,244) 13,276
------------ ------------
EBITDA $ 43,816 $ 19,380
------------ ------------
------------ ------------
For the Year
Ended - Unaudited
December 31, December 31,
2009 2008
------------ ------------
($000s)
Net loss $ (164,273) $ (575,455)
Income tax (benefit) expense (128,576) 287,440
Interest expense - non-affiliated 132,166 165,607
Interest expense - affiliated 3,772 -
Interest income (5,040) (14,921)
Depreciation 214,106 219,667
Amortization of intangibles 65,736 102,959
Impairment of goodwill - 1,278,000
Facility closure costs 115,033 -
Amortization of deferred financings costs 24,274 10,951
Loss on extinguishment of debt 11,877 -
Loss (income) from 50% owned joint ventures 4,692 (45,005)
Cash distribution from 50% owned joint ventures 11,828 41,829
Foreign exchange (gain) loss, net 37,914 (21,682)
Realized (gain) loss on investments, net (3,244) 59,977
------------ ------------
EBITDA $ 320,265 $ 1,509,367
------------ ------------
------------ ------------
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED
THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES
For the Three Months Ended
December 31, 2009 December 31, 2008
------------------------- -------------------------
Tons Tons
------------ ------------
Production
Melt Shops 1,273,949 1,032,715
Rolling Mills 1,158,748 971,335
Tons % Tons %
------------ ------------ ------------ ------------
Finished Steel
Shipments
Rebar 217,965 17% 213,371 16%
Merchant/Special
Sections/Structurals 752,588 58% 734,560 55%
Rod 102,897 8% 82,742 6%
Fabricated Steel 215,158 17% 312,558 23%
------------ ------------ ------------ ------------
Total Shipments 1,288,608 100% 1,343,231 100%
$/Ton $/Ton
------------ ------------
Selling Prices
Mill external
shipments $ 605 $ 901
Fabricated steel
shipments 839 1,280
Scrap Charged 217 265
Metal Spread (Selling
price less scrap)
Mill external shipments 388 636
Fabricated steel shipments 622 1,015
Mill manufacturing cost 328 489
SUPPLEMENTAL OPERATING AND FINANCIAL INFORMATION - UNAUDITED
THE INFORMATION IN THIS TABLE EXCLUDES 50% OWNED JOINT VENTURES
For the Year Ended
December 31, 2009 December 31, 2008
------------------------- -------------------------
Tons Tons
------------ ------------
Production
Melt Shops 5,412,087 8,359,903
Rolling Mills 5,109,356 7,948,527
Tons % Tons %
------------ ------------ ------------ ------------
Finished Steel Shipments
Rebar 946,373 18% 1,564,045 19%
Merchant/Special
Sections/Structurals 2,806,051 53% 4,710,754 57%
Rod 485,415 9% 620,927 7%
Fabricated Steel 1,075,719 20% 1,424,128 17%
------------ ------------ ------------ ------------
Total Shipments 5,313,558 100% 8,319,854 100%
$/Ton $/Ton
------------ ------------
Selling Prices
Mill external
shipments $ 637 $ 884
Fabricated steel
shipments 945 1,150
Scrap Charged 201 340
Metal Spread (Selling
price less scrap)
Mill external shipments 436 544
Fabricated steel shipments 744 810
Mill manufacturing cost 315 348
SOURCE Gerdau Ameristeel Corporation
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