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MarketScreener Homepage  >  Equities  >  Nasdaq  >  Steel Dynamics, Inc.    STLD

STEEL DYNAMICS, INC.

(STLD)
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Steel Dynamics : Third Quarter 2020 Investor Call Presentation

10/20/2020 | 08:55am EST

Third Quarter 2020 Investor Call Presentation

20 October 2020

Forward Looking Statements and Non-GAAP Financial Measures

Forward-Looking Statements

This presentation contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel and recycled metals market places, Steel Dynamics' production capacities, shipments, revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," or by the words "may," "will," or "should," are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) the effects of pandemics or other health issues, such as the recent novel coronavirus outbreak (COVID-19); (3) cyclical and changing industrial demand; (4) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, energy, and other steel-consuming industries; (5) fluctuations in the cost of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (6) the impact of domestic and foreign imports, including trade policy, restrictions, or agreements; (7) unanticipated difficulties in integrating or starting up new, acquired or planned businesses or assets; (8) risks and uncertainties involving product and/or technology development; and (9) occurrences of unexpected plant outages or equipment failures.

More specifically, we refer you to Steel Dynamics' more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently than expected or anticipated, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com: Investors: SEC Filings.

Note Regarding Non-GAAP Financial Measures

Steel Dynamics reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). Management believes that EBITDA, Adjusted EBITDA, Adjusted Operating Income and Free Cash Flow, non-GAAP financial measures, provide additional meaningful information regarding Steel Dynamic's performance and financial strength. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Steel Dynamics' reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, EBITDA, Adjusted EBITDA, Adjusted Operating Income and Free Cash Flow included in this presentation may not be comparable to similarly titled measures of other companies. The reconciliations of these non-GAAP measures to their most comparable GAAP measures are contained in the appendix at the end of this presentation.

20 October 2020 1

Differentiated and Proven Business Culture

Safety is Our Number One Value

Total Recordable Injury Rate1

2.3

2.0

1.9

1.8

1.8

1.5

2015

2016

2017

2018

2019

Q3'20 TTM

Lost Time Injury Rate1

0.66

0.35

0.34

0.33

0.33

0.25

Each of our platforms perform meaningfully better than industry benchmarks

Total 2019 Recordable Injury Rate1 By Platform

Steel

Steel

Metals

Fabrication

Recycling

5.0

5.1

2.7

2.7

2.4

1.4

Steel Dynamics

Industry²

Severity Rate1

24.9

14.2

12.2

10.9

10.4

9.2

2015

2016

2017

2018

2019

Q3'20

2015

2016

2017

2018

2019

Q3'20

TTM

TTM

  1. Total Recordable Injury Rate is defined as OSHA recordable incidents x 200,000 / hours worked, Lost Time Injury Rate is defined as OSHA days away from work cases x 200,000 / hours worked, and Severity Rate is defined as OSHA days away from work x 200,000 / hours worked
  2. Source: 2018 U.S. DOL Bureau of Labor Statistics

20 October 2020 2

Differentiated and Proven Business Culture

Financial Strength in Diverse Market Environments

Revenue (dollars in billions)

Record

High

2nd Best

Year

$11.8

$10.5

$9.5

$9.4

$7.8

2016

2017

2018

2019

Q3'20 TTM

Net Income (dollars in millions)

Record

High

$1,258

3rd Best

Year

$813

$671

$484

$382

Adjusted Operating Income1 (dollars in millions)

Record

High

$1,738

3rd Best

Year

$1,067

$987

$861

$770

2016

2017

2018

2019

Q3'20 TTM

Adjusted EBITDA1 (dollars in millions)

Record

High

$2,074

3rd Best

Year

$1,405

$1,333

$1,172

$1,082

2016

2017

2018

2019

Q3'20 TTM

2016

2017

2018

2019

Q3'20 TTM

¹ Please see the reconciliation of these amounts to GAAP measures in the appendix to this presentation.

20 October 2020 3

Differentiated and Proven Business Culture

Annual Steel Operations Results

Steel Operations Shipments (millions of tons)

Record

High

9.7

10.6

10.8

10.7

Acquired

9.2

Heartland Flat

3.4

3.1

3.1

2.6

2.8

Roll Division Q3

2018 and United

7.7

7.6

Steel Supply

7.2

6.9

6.6

March 2019.

Operating Income (dollars in millions)

2016

2017

2018

2019

Q3'20 TTM

Flat Roll

Long Products

Processing Locations¹ Shipments (included above)

(thousands of tons)

$941

Record

High

$1,855

$1,114$1,048

$810

1,764

Our processing

1,668

locations represented

15% of total steel

shipments in 2019,

and the associated

1,070

steel procurement

880

cost represented 16%

809

of our steel

operations' cost of

goods sold.

2016

2017

2018

2019

Q3'20 TTM

¹ Processing locations include Heartland (flat roll), Techs (flat roll), United Steel Supply (flat roll) and Vulcan (SBQ).

2016

2017

2018

2019

Q3'20 TTM

20 October 2020 4

Differentiated and Proven Business Culture

Annual Metals Recycling Results

Ferrous Shipments (millions of gross tons)

5.1

5.1

5.0

66% of 2019 and

4.6

4.3

70% of Q3 2020

TTM ferrous scrap

volume was sold

to Steel Dynamics'

own steel mills

2016

2017

2018

2019

Q3'20 TTM

Nonferrous Shipments (millions of pounds)

1,104 1,087 1,131 1,068

959

Adjusted Operating Income¹ (dollars in millions)

$85 $88

$40

$28

$$130

2016

2017

2018

2019

Q3'20 TTM

2016

2017

2018

2019

Q3'20 TTM

¹ Adjusted operating income excludes non-cash goodwill and asset impairment charges of $6 million in 2016.

20 October 2020 5

Differentiated and Proven Business Culture

Annual Steel Fabrication Results

Shipments (thousands of tons)

Record

High

676

642

644

627

563

2016

2017

2018

2019

Q3'20 TTM

Operating Income (dollars in millions)

Record

High

$128 $119

$91 $87

$62

2016

2017

2018

2019

Q3'20 TTM

20 October 2020 6

Differentiated and Proven Business Culture

Quarterly Consolidated Results

Revenue (dollars in billions)

$2.6

$2.5

$2.4

$2.3

$2.1

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Operating Income (dollars in millions)

$274

$228

$182

$159 $156

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Net Income (dollars in millions)

$187

$151

$121

$100

$75

Adjusted EBITDA1 (dollars in millions)

$356

$315

$270

$217

$238

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

¹ Please see the reconciliation of these amounts to GAAP amounts in the appendix to this presentation.

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

20 October 2020 7

Differentiated and Proven Business Culture

Quarterly Steel Operations Results

Steel Operations Shipments (millions of tons)

Record

High

2.7

2.7

2.8

2.7

0.8

2.5

0.8

0.8

0.7

0.7

2.0

2.0

1.9

1.9

1.8

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Flat Roll

Long Products

Processing Locations¹ Shipments (included above) (thousands of tons)

481

448

435

Our processing

422

426

locations represented

18% of total steel

shipments in Q3 2020,

and the associated

steel procurement

cost represented 19%

of our steel

operations' cost of

goods sold.

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

¹ Processing locations include Heartland, Techs, United Steel Supply and Vulcan.

Operating Income (dollars in millions)

$293

$240

$201

$172

$144

Q3'19 Q4'19 Q1'20 Q2'20 Q3'20

20 October 2020 8

Differentiated and Proven Business Culture

Quarterly Metals Recycling Results

Ferrous Shipments (millions of gross tons)

1.3

1.2

1.2

71% of Q3 2020

1.1

ferrous scrap

volume was sold

0.8

to Steel Dynamics'

own steel mills

Operating Income (Loss) (dollars in millions)

$15

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

$8

Nonferrous Shipments (millions of pounds)

$3

($5)

($6)

272

267

257

253

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

167

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

20 October 2020 9

Differentiated and Proven Business Culture

Quarterly Steel Fabrication Results

Shipments (thousands of tons)

Operating Income (dollars in millions)

Record

High

179

169

174

163

160

$35

$33

$29

Record

High

$39

$27

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

Q3'19

Q4'19

Q1'20

Q2'20

Q3'20

20 October 2020 10

Differentiated and Proven Business Culture

Our differentiated business model results in higher through-cycle steel utilization

We achieve consistently higher through-cycle steel utilization compared to our peers, driven by our low-cost, vertically connected business model, and diversified value-added product portfolio and supply-chain solutions.

Steel Mill Production Utilization

96%

94%

89%

82%

82%

88%

88%

87%

88%

85%

79%

79%

73%

78%

80%

80%

74%

75%

77%

78%

74%

70%

70%

71%

64%

56%

22%

24%

23%

28%

29%

25%

27%

23%

21%

21%

19%

18%

17%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Q1'20

Q2'20

Q3'20²

Domestic Steel Industry Production Utilization (%)

Domestic Steel Imports Excluding Semi-finished as a % of Apparent Domestic Consumption Steel Dynamics Steel Mill Production Utilization (%)

2020

Est. Annual SDI Steel Mill Production Capacity

(Thousands of Tons)

Flat Roll Group - Butler

3,200

- Columbus

3,200

Structural & Rail

2,200

Engineered Bar

950

Roanoke Bar

720

Steel of West Virginia

555

Total¹

10,825

Q3 2020 SDI Steel Mill Production

2,320

Q3 2020 SDI Steel Mill Utilization

85%

  • Excludes our processing divisions capacity of approximately 2.4 million tons.

Source: AISI, U.S. Department of Commerce, Accenture

2 Domestic Steel Imports Excluding Semi-finished as a % of Apparent Domestic Consumption for the third quarter 2020 is through August 2020.

20 October 2020 11

Differentiated and Proven Business Culture

Our differentiated business model is a proven cash generator in all demand environments

Doubled Average Annual Free

Cash Flow

Free Cash Flow1 (dollars in millions)

5-year average: $1.1 billion

5-year average: $564 million

$1,086

$793

$1,835

$974

$1,240

$881

$510

$681

$751

$591

$397

$479

$69

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Q3'20 TTM

Excluding 2019 and Q3 2020 TTM funding

of $205M and $724M, respectively, for our

new Texas flat roll steel mill, our 2019 and

Q3 2020 TTM free cash flow would have

Strong "Through-Cycle" Cash

been $1.1B and $.8B and our 2019 and Q3

Generation

2020 TTM free cash flow conversion would

Free Cash Flow Conversion1

88%

88%

have been 81% and 73%.

87%

84%

83%

79%

80%

81%

72%

73%

64%

66%

6%

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Q3'20 TTM

1 "Free Cash Flow" is defined as Adjusted EBITDA - Capital Investments. "Free Cash Flow Conversion" is defined as Free Cash Flow / Adjusted EBITDA. The Adjusted EBITDA and Free Cash Flow reconciliations to GAAP net income are provided in the appendix to this presentation.

20 October 2020 12

Differentiated and Proven Business Culture

We are operating from a position of strength, investing to deliver our next phase of meaningful growth

Timing

Leveraging expertise to create next generation EAF production capabilities, while gaining market share from disadvantaged, high-cost competitors and imports

New Sinton, Texas Greenfield Flat Roll Steel Mill

Mid-20211

Current estimated investment of approximately $1.9 billion1

Continuing to grow and diversify premium, value-added product capabilities and unlock value of existing operations

  • Columbus Flat Roll Division $160 million Metallic Coating Line, with galvanized and aluminized coating capability
  • Roanoke Bar Division $38 million Reinforcing Bar Expansion
  • Structural and Rail Division $82 million Reinforcing Bar Expansion

First prime coil July 2020

Q2 2018

Q1 2019

Collectively, these primary strategic growth investments provide estimated incremental annual EBITDA of over $425M on a through- cycle historical spread basis.

Growing high-margin downstream manufacturing to provide optional base-load,"pull-through" volume for our steel operations

United Steel Supply Coated Flat Roll Steel Distributor,

March 2019

75% Acquisition of Equity Interest, Valued at $134 million

Heartland Flat Roll Steel Acquisition $434 million (includes $98 million of working capital)

June 2018

1 Estimated project cost and start-up timeline.

20 October 2020 13

Differentiated and Proven Business Culture

Columbus Flat Roll Division 3rd state-of-the-art metallic coating line addition, with galvanized and aluminized coating capability

Congratulations to the team on

running their 1st prime coil!

July 9, 2020

20 October 2020 14

Differentiated and Proven Business Culture

Our new Sinton, Texas flat roll steel mill provides transformational growth

Once completed as planned, will represent over a 25% increase in our annual steel production capacity

Investment

Track

Record

Strategically Compelling

  • "Next Generation" electric-arc-furnace flat roll steel mill, including a higher-margin,value-added galvanizing line (550k tons) and paint line (250k tons)
  • Estimated 3.0 million tons of annual production capability
  • Differentiated production capabilities, with meaningful customer and supply-chain benefits
    • Widths (38" to 84") and gauges from 0.047" to 1.00" / Produce up to 52.5 ton coils
  • Our team has an unparalleled track record for delivering organic investments "on time" and "on budget", creating significant value
  • Expertise delivering "Next Generation", state-of-the-art steel production facilities
  • "Next Generation" capabilities that goes beyond existing EAF-based production capabilities
  • Latest generation of advanced high strength steel grades, including automotive and energy grades
  • Diversified, higher-qualityvalue-added product mix
  • Targeting underserved markets reliant on imports with long lead times and inferior product quality
  • Competitively advantaged location

Smart

Growth from import share gains and higher-growth,steel-consuming markets

Mexican flat roll steel consumption grew over 20% from 2013 - 20191, with shipments of 15M tons in 2019

Growth

Mexican market imported 6M tons of flat roll steel or over 40% in 20192

  1. Source: CRU
  2. Source: U.S. Department of Commerce

20 October 2020 15

Differentiated and Proven Business Culture

New greenfield Sinton, Texas flat roll steel mill drives transformational growth and "next-generation" EAF steelmaking

Estimated 27 million tons in Targeted Regional Markets

  • Texas and Surrounding States = 7 million tons1
  • West Coast = 4 million tons1

Mexico = 15 million tons2 (~45% imported)

Location Benefits

No Flat Roll Steel

Production Capacity

Houston

Sinton

SDI's New Texas Mill

Monterrey

Steel Dynamics flat roll steel mills

Other flat roll steel producers

  • Customer-centriclogistics, providing shorter lead times and working capital savings
  • Central to the largest domestic consumption of flat roll Galvalume® and construction painted products, with the ability to effectively compete with excessive imports
  • Available acreage to allow customers to locate on-site, providing logistic savings and steel mill volume base-loading opportunities, representing 800,000 to 1.0M annual tons of local steel processing and consumption capability
  • Proximity to prime ferrous scrap generation via the four-state Texas region and Mexico through our existing metals recycling platform and our recent acquisition of Zimmer, a Mexican metals recycling company
  • Cost-effectiveaccess to pig iron through the deep-water port of Corpus Christi, as well as other alternative iron units
  • Excellent logistics provided by on-site access to two class I railroads, proximity to a major U.S. highway system, and access to the deep-water port of Corpus Christi
  • Existing, mature and dependable power, natural gas, and water sources

1 Source: 2017 CANACERO information published through AISI, market study including imports by regional ports, producer shipments and confidential customer information

2 Source: CRU

20 October 2020 16

Differentiated and Proven Business Culture

Sinton, Texas flat roll steel mill provides value-added product diversification

Sinton's targeted markets are similar to our other flat roll operations including construction,

automotive, energy tubulars, appliance, and other manufacturing. Like our other steel

operations, we can quickly pivot from one market to another based on underlying demand.

Estimated Sinton

Estimated Sinton

Product Mix¹

Shipments by Region¹

9%

12%

Hot Roll

30%

Pickled & Oiled

United States

7%

Cold Roll

Mexico

60%

Galvanized

Painted

12%

70%

1 Based on a pro-forma full year of production at the Flat Roll Group Southwest - Sinton Division.

20 October 2020 17

Differentiated and Proven Business Culture

Capital allocation framework, committed to growth and investment grade ratings

Best-in-class performance

  • Strong free cash flow conversion
  • Leading EBITDA margin

Strong cash flow

generating business

model

  • Capital investments largely funded through cash flow
  • Acquisitions funded to maintain credit flexibility and prudent liquidity while ensuring strong strategic logic, cultural fit, levering core competencies, and clear execution roadmap

Strong balance sheet

  • Broad access to low- cost debt
  • Net leverage managed to not exceed 2.0x through-cycle
  • Subsequent to an acquisition, committed to deleveraging in a timely manner

Significant strategic

optionality

  • Current growth strategy plans funded through free cash flow and debt capacity
  • Flexible shareholder distributions - maintain positive dividend profile and use share repurchases as appropriate

Balanced Capital Allocation - $5.6 billion Cash Flow

from Operations over the last five years1

Conservative net leverage while growing and

returning capital to shareholders

$2.6 billion

Growth

$ 0.7 B

M&A

$ 1.9 B

Internal

Capital

Investments

1 Period ended September 30, 2020.

$2.1 billion

Capital Returned to Shareholders

$ 1.3 B

Share

Repurchases

$ 0.8 B

Dividends

2.5

2.0

1.5

1.3

1.4

1.0

1.0

0.8

0.6

0.5

0.0

2016

2017

2018

2019

Q3' 20

20 October 2020 18

Differentiated and Proven Business Culture

Strong liquidity and conservative credit metrics

Strong liquidity (dollars in millions)

As of September 30, 2020

We executed a

5 year $1.2B

unsecured credit facility

December 2019

$1,188

Staggered debt maturity profile2 (dollars in millions)

$750

$600

$500

No Near-Term

$400

$400

Maturities

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

Low leverage, low-cost debt (dollars in millions)

$2,456

$1,2681268

Cash and cash

Revolver

Total liquidity

equivalents

availability

September 30,

x Adjusted

2020

EBITDA¹

Cash and cash equivalents

$1,268

2.800% senior notes, 2024

400

0.4x

2.400% senior notes, 2025

400

0.4x

4.125% senior notes, 2025

350

0.3x

5.000% senior notes, 2026

400

0.4x

3.450% senior notes, 2030

600

0.6x

3.250% senior notes, 2031

500

0.5x

Other obligations

105

0.1x

Total debt

$2,755

2.5x

Net debt

$1,487

1.4x

Adjusted TTM EBITDA¹

$1,082

In June 2020, we refinanced $400M of 5.250% senior notes due 2023 and $500M of 5.500% senior notes due 2024, with the issuance of $400M of 2.400% notes due 2025 and $500M of 3.250% notes due 2031.

We are committed to maintaining investment grade credit ratings

¹ September 30, 2020 Trailing Twelve Months Adjusted EBITDA. The reconciliation to GAAP net income is provided in the appendix to this presentation. 2 Excludes other debt obligations of $105 million.

20 October 2020 19

Differentiated and Proven Business Culture

We are committed to sustainability

Matching operations to sustainability

  • EAF steel production uses a fraction of the energy and has a fraction of the carbon footprint vs. blast furnace technology
  • We are one of the largest nonferrous metals recyclers and the 2nd largest ferrous recycler in the U.S.
    • We reintroduced 1.1 billion pounds of recycled nonferrous scrap into the manufacturing life cycle in 2019
    • We reintroduced 11 million tons of recycled ferrous scrap into the manufacturing life cycle in 2019

99% of our total system water demand was reused during 2018

Greenhouse Gas Emission Intensity1

0.24 0.24

0.21 0.21

2015

2016

2017

2018

Energy Intensity2

1,148

1,140

1,117

1,081

2015

2016

2017

2018

Source: Our 2018 Sustainability Update located on our website at www.steeldynamics.com/Sustainability.aspx

  1. Metric tons of Scope 1 CO2 equivalent emissions/cast steel ton
  2. KWH / ton of steel produced

20 October 2020 20

Differentiated and Proven Business Culture

We are a leading North American steel producer with a differentiated and proven business model

Consistent best-in-class performance

Differentiated business model delivering strong profitability and cash flow

Smart growth - Gaining market share and growing with customers

100% of steel produced with electric-arc-furnace technology

Strong balance sheet provides strategic flexibility for current operations and prudent growth

Sustainable shareholder value creation and distribution growth

20 October 2020 21

Differentiated and Proven Business Culture

APPENDIX

Our primary steel operations - at a glance

We are one of the largest domestic steel producers, with approx. 13 million tons of steel shipping capability We have one of the most diversified product and end-market portfolios in the domestic steel industry

Flat Roll Steel Group

8.4M Tons Annual Shipping Capacity

Butler, Indiana

- Greenfield EAF Steel Mill

- 3.2M Tons

- 3 Galvanizing Lines

- 2 Paint Lines

Columbus, Mississippi

- Acquired / Expanded EAF Steel Mill

- 3.2M Tons

- 3 Metallic Coating Lines

- 1 Paint Line

Terre Haute, IN¹

- Heartland / Acquired Flat Roll

Processing Facility

- 1.0M Tons

- 1 Galvanizing Line

Pittsburgh, PA¹

- The Techs / Acquired Flat

Roll Galvanizing Facilities

- 1.0M Tons Galvanized

- 3 Galvanizing Lines

1 Processing locations

Long Product Steel Group

4.6M Tons Annual Shipping Capacity

Columbia City, Indiana

  • Greenfield EAF Steel Mill
  • 2.2M Tons
  • Structural and Rail

Pittsboro, Indiana

  • Acquired / Expanded EAF Steel Mill
  • 950K Tons
  • Special-bar-quality
  • Value-AddedFinishing / Inspecting Lines

Roanoke, Virginia

  • Acquired / Expanded EAF Steel Mill
  • 720K Tons
  • Merchant and Rebar

Huntington, WV

  • Acquired / Expanded EAF Steel Mill
  • 555K tons
  • Specialty Shapes

20 October 2020 23

Differentiated and Proven Business Culture

Steel Dynamics - Adjusted EBITDA, Free Cash Flow and Adjusted Operating Income Reconciliations

Q3'20

Dollars in millions

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

TTM

Net Income (Loss)

$130

$266

$142

$164

$ 92

$ (145)

$ 360

$ 806

$1,256

$ 678

$ 498

Income Taxes (Benefit)

83

158

62

99

73

(97)

204

129

364

197

137

Net Interest Expense

166

172

154

123

135

153

141

124

104

99

91

Depreciation

171

177

180

192

229

263

261

265

283

286

286

Amortization

46

40

36

32

28

25

29

29

28

30

30

Noncontrolling Interests

12

13

21

26

65

15

22

7

3

(7)

(13)

EBITDA

$608

$826

$595

$636

$622

$

214

$1,017

$1,360

$2,038

$1,283

$1,029

Unrealized Hedging (Gains) / Losses

2

(4)

(3)

5

(5)

3

1

5

(6)

3

-

Inventory Valuation

6

9

6

7

10

28

1

3

2

1

1

Equity-Based Compensation

14

17

12

16

23

29

30

34

40

43

44

Asset Impairment Charge

13

-

8

-

213

429

120

-

-

-

-

Refinancing Charges

-

-

3

2

-

3

3

3

-

3

8

Adjusted EBITDA

$643

$848

$621

$666

$863

$

706

$1,172

$1,405

$2,074

$1,333

$1,082

Less Capital Investments

133

167

224

187

112

115

198

165

239

452

1,013

Free Cash Flow

$510

$681

$397

$479

$751

$

591

$

974

$1,240

$1,835

$

881

$

69

Q3'20

Dollars in millions

2016

2017

2018

2019

TTM

Consolidated Operating Income

$

728

$ 1,067

$ 1,722

$

987

$

770

Asset Impairment Charge

133

-

-

-

-

Non-cash Purchase Accounting

-

-

16

-

-

Adjusted Operating Income

$

861

$ 1,067

$ 1,738

$

987

$

770

20 October 2020 24

Differentiated and Proven Business Culture

Steel Dynamics - Quarterly Adjusted EBITDA Reconciliation

Dollars in millions

Q3 2019

Q4 2019

Q1 2020

Q2 2020

Q3 2020

Net Income

$

153

$

124

$

191

$

79

$

104

Income Taxes

49

26

57

24

29

Net Interest Expense

24

25

22

26

19

Depreciation

71

70

71

70

73

Amortization

7

9

7

7

7

Noncontrolling Interests

(2)

(2)

(3)

(3)

(4)

EBITDA

$

302

$

252

$

345

$

203

$

228

Unrealized Hedging (Gains) / Losses

4

1

(1)

-

1

Inventory Valuation

-

-

1

-

-

Equity-Based Compensation

9

14

11

9

9

Refinancing Charges

-

3

-

5

-

Adjusted EBITDA

$

315

$

270

$

356

$

217

$

238

20 October 2020 25

Differentiated and Proven Business Culture

Disclaimer

SDI - Steel Dynamics Inc. published this content on 20 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 October 2020 12:54:04 UTC


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Financials (USD)
Sales 2020 9 553 M - -
Net income 2020 537 M - -
Net Debt 2020 1 794 M - -
P/E ratio 2020 15,3x
Yield 2020 2,58%
Capitalization 8 141 M 8 141 M -
EV / Sales 2020 1,04x
EV / Sales 2021 0,88x
Nbr of Employees 8 385
Free-Float 75,0%
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Technical analysis trends STEEL DYNAMICS, INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 40,40 $
Last Close Price 38,70 $
Spread / Highest target 29,2%
Spread / Average Target 4,39%
Spread / Lowest Target -17,3%
EPS Revisions
Managers and Directors
NameTitle
Mark D. Millett President, Chief Executive Officer & Director
Keith E. Busse Non-Independent Non-Executive Chairman
Theresa E. Wagler CFO, Principal Accounting Officer & Executive VP
Robert E. Francis Chief Information Officer & Vice President
Richard P. Teets Director
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