PORTLAND, Ore.- Schnitzer Steel Industries, Inc. (NASDAQ: SCHN) today reported results for its second quarter of fiscal 2021 ended February 28, 2021.
Second Quarter Fiscal 2021 Highlights
Diluted earnings per share from continuing operations of $1.54, more than triple earnings per share of $0.50 in the first quarter of fiscal 2021, and compared to $0.14 in the second quarter of fiscal 2020
Adjusted diluted earnings per share from continuing operations of $1.51, compared to adjusted diluted earnings per share of $0.57 in the first quarter of fiscal 2021 and $0.31 in the second quarter of fiscal 2020
Net income of $46 million, more than triple the net income of $15 million in the first quarter of fiscal 2021, and compared to net income of $5 million in the second quarter of fiscal 2020
Adjusted EBITDA of $71 million in the quarter, compared to adjusted EBITDA of $40 million in the first quarter of fiscal 2021 and $28 million in the second quarter of fiscal 2020
The Company's performance benefited from strong global demand for recycled metals and finished steel products, with selling prices for ferrous and nonferrous scrap reaching multi-year highs. The sharp increase in selling prices during the quarter contributed to the Company's strong margins, while ferrous sales volumes were impacted by severe weather, which affected the timing of shipments. Operating results also benefited from the continued strength in West Coast demand for finished steel products, as well as the execution of commercial initiatives and productivity improvements supported by the One Schnitzer operating platform.
Tamara Lundgren, Chairman and Chief Executive Officer, stated, 'We are exceptionally pleased with our performance during the quarter, reflecting our best operating income per ton since 2008. This is a testament to the strength and agility of our team in leveraging positive market conditions while delivering on our operational and strategic initiatives. Since the end of the second quarter, we have commissioned two of the advanced metal recovery technology systems which are key to the execution of our strategic plan and the achievement of our Sustainability goals.'
Ms. Lundgren continued, 'Price volatility during the quarter was significant, but trading was maintained at much higher price levels than in the recent past, reflecting the stronger demand associated with both the economic recovery and positive structural commodity trends. Decarbonization and broader ESG factors, together with the catalytic effect of global stimulus, are serving as structural drivers of demand for recycled metals. Scrap, in other words, is an important strategic solution for companies, industries and governments that are focused on carbon reduction.'
Forward-Looking Statements
Statements and information included in this press release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and are made pursuant to the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. Except as noted herein or as the context may otherwise require, all references in this press release to 'we,' 'our,' 'us,' 'the Company' and 'SSI' refer to Schnitzer Steel Industries, Inc. and its consolidated subsidiaries.
Forward-looking statements in this press release include statements regarding future events or our expectations, intentions, beliefs and strategies regarding the future, which may include statements regarding the impact of pandemics, epidemics or other public health emergencies, such as the coronavirus disease 2019 ('COVID-19') pandemic; the Company's outlook, growth initiatives or expected results or objectives, including pricing, margins, sales volumes and profitability; liquidity positions; our ability to generate cash from continuing operations; trends, cyclicality and changes in the markets we sell into; strategic direction or goals; targets; changes to manufacturing and production processes; the realization of deferred tax assets; planned capital expenditures; the cost of and the status of any agreements or actions related to our compliance with environmental and other laws; expected tax rates, deductions and credits; the impact of sanctions and tariffs, quotas and other trade actions and import restrictions; the potential impact of adopting new accounting pronouncements; obligations under our retirement plans; benefits, savings or additional costs from business realignment, cost containment and productivity improvement programs; and the adequacy of accruals.
Forward-looking statements by their nature address matters that are, to different degrees, uncertain, and often contain words such as 'outlook,' 'target,' 'aim,' 'believes,' 'expects,' 'anticipates,' 'intends,' 'assumes,' 'estimates,' 'evaluates,' 'may,' 'will,' 'should,' 'could,' 'opinions,' 'forecasts,' 'projects,' 'plans,' 'future,' 'forward,' 'potential,' 'probable,' and similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking.
We may make other forward-looking statements from time to time, including in reports filed with the Securities and Exchange Commission, press releases, presentations and on public conference calls. All forward-looking statements we make are based on information available to us at the time the statements are made, and we assume no obligation to update any forward-looking statements, except as may be required by law. Our business is subject to the effects of changes in domestic and global economic conditions and a number of other risks and uncertainties that could cause actual results to differ materially from those included in, or implied by, such forward-looking statements. Some of these risks and uncertainties are discussed in 'Item 1A. Risk Factors' of Part I of our most recent Annual Report on Form 10-K, as supplemented by our subsequently filed Quarterly Reports on Form 10-Q. Examples of these risks include: the impact of pandemics, epidemics or other public health emergencies, such as the COVID-19 pandemic; potential environmental cleanup costs related to the Portland Harbor Superfund site or other locations; the cyclicality and impact of general economic conditions; changing conditions in global markets including the impact of sanctions and tariffs, quotas and other trade actions and import restrictions; volatile supply and demand conditions affecting prices and volumes in the markets for raw materials and other inputs we purchase; significant decreases in scrap metal prices; imbalances in supply and demand conditions in the global steel industry; reliance on third party shipping companies, including with respect to freight rates and the availability of transportation; inability to obtain or renew business licenses and permits; the impact of goodwill impairment charges; the impact of long-lived asset and equity investment impairment charges; failure to realize or delays in realizing expected benefits from investments in processing and manufacturing technology improvements; inability to achieve or sustain the benefits from productivity, cost savings and restructuring initiatives; inability to renew facility leases; difficulties associated with acquisitions and integration of acquired businesses; customer fulfillment of their contractual obligations; increases in the relative value of the U.S. dollar; the impact of foreign currency fluctuations; potential limitations on our ability to access capital resources and existing credit facilities; restrictions on our business and financial covenants under the agreement governing our bank credit facilities; the impact of consolidation in the steel industry; the impact of equipment upgrades, equipment failures and facility damage on production; product liability claims; the impact of legal proceedings and legal compliance; the adverse impact of climate change; the impact of not realizing deferred tax assets; the impact of tax increases and changes in tax rules; the impact of property tax increases or property tax rate changes; the impact of one or more cybersecurity incidents; environmental compliance costs and potential environmental liabilities; compliance with climate change and greenhouse gas emission laws and regulations; reliance on employees subject to collective bargaining agreements; and the impact of the underfunded status of multiemployer plans in which we participate.
Investor Relations:
Michael Bennett
(503) 323-2811
mcbennett@schn.com
Company Info:
www.schnitzersteel.com
ir@schn.com
https://www.schnitzersteel.com/news_release_detail.aspx?ReleaseId=21091
RADIUS RECYCLING, INC. 
