AK Steel (NYSE:AKS) today reported its financial results for the
first quarter of 2018.
First Quarter 2018 Highlights
- Net income of $28.7 million, or $0.09 per diluted
share
- Adjusted EBITDA of $118.7 million, or 7.2% of
sales
- Revenues of $1,658.9 million, an 8.2% increase from
first quarter 2017
“Our first quarter 2018 operating performance benefited from a
favorable pricing environment and solid demand across most end
markets, including automotive,” said Roger K. Newport, Chief
Executive Officer of AK Steel. “Our performance was tempered
by the previously disclosed unplanned outage at our Middletown
Works in January.”
“We remain optimistic about 2018, as we expect automotive and
other key end use markets to remain strong. Additionally, the
collaborative efforts between Precision Partners, AK Tube and our
AK Steel technical and research teams are gaining traction at key
automotive customers,” Newport said. “The high level of
imports, particularly the ongoing surge of foreign electrical
steel, remains a challenge and we will continue to work proactively
with the Trump Administration to ensure fair and appropriate trade
policies.”
AK Steel reported net income of $28.7 million, or $0.09 per
diluted share of common stock, for the first quarter of 2018.
The company’s adjusted EBITDA (as defined in the “Non-GAAP
Financial Measures” section below) was $118.7 million, or 7.2% of
net sales, for the first quarter of 2018. These results were
driven by higher steel selling prices and the effect of the
Precision Partners acquisition, offset by higher costs as a result
of the Middletown Works unplanned outage, and increased costs for
raw materials. In the quarter, the company also changed its
method of accounting for certain inventories from the last-in,
first-out (LIFO) method to the average cost method, which was
retrospectively applied to prior-period financial statements.
For the first quarter of 2017, net income was $84.4 million, or
$0.26 per diluted share, and adjusted EBITDA was $178.2 million, or
11.6% of net sales. The first quarter a year ago benefited
from lower cost raw materials, higher automotive sales and
surcharge revenue for specialty steels. The company ended the
first quarter of 2018 with total liquidity of $853.3 million,
consisting of cash and cash equivalents and $819.8 million of
availability under the company’s revolving credit facility.
|
(Dollars in millions,
except per share and per ton data) |
|
Three MonthsEnded March 31, |
|
|
2018 |
|
2017 |
|
|
|
|
|
Flat-rolled steel
shipments (000 tons) |
|
1,430.9 |
|
|
1,456.2 |
|
Selling price per
flat-rolled steel ton |
|
$ |
1,045 |
|
|
$ |
1,005 |
|
|
|
|
|
|
Net sales |
|
$ |
1,658.9 |
|
|
$ |
1,533.4 |
|
Operating profit |
|
63.6 |
|
|
129.7 |
|
Net income attributable
to AK Steel Holding Corporation |
|
28.7 |
|
|
84.4 |
|
Adjusted EBITDA |
|
118.7 |
|
|
178.2 |
|
|
|
|
|
|
Net income per diluted
share attributable to AK Steel Holding Corporation |
|
$ |
0.09 |
|
|
$ |
0.26 |
|
|
|
|
|
|
|
|
|
|
OutlookThe company anticipates that market
conditions will strengthen in the second quarter compared to the
first quarter. Shipments of carbon and stainless steels, as
well as tubular and stamping products, are expected to benefit from
continued strength in the automotive market. In addition, the
company anticipates increased shipments into both the distributor
and converter, and the infrastructure and manufacturing
markets.
The following additional factors are also relevant to AK Steel’s
second quarter 2018 outlook:
- The company expects flat-rolled shipments in the second quarter
to be approximately 5% to 7% higher than the first quarter of
2018.
- The company currently estimates that the average selling price
per flat-rolled ton will be about $1,075 in the second quarter,
compared to $1,045 in the first quarter.
- The company expects outage costs to be approximately $20.0 to
$25.0 million in the second quarter of 2018, compared to $31.1
million in the first quarter.
- As a result of anticipated improvement in pricing and volumes,
the company expects its second quarter adjusted EBITDA margin to
improve by 1.5 to 2.0 percentage points from the first quarter of
2018.
The foregoing outlook is based on AK Steel’s current estimates
and may change based on business conditions and other
factors. There are many other items that could affect the
company’s 2018 results, as outlined in the Forward-Looking
Statements below, including developments in the domestic and global
economies, in the company’s business, and in the businesses of the
company’s customers, suppliers and competitors.
Change from LIFO Inventory MethodIn the first
quarter of 2018, AK Steel changed its accounting method for valuing
inventories to the average cost method from the LIFO method.
The company believes that this method is preferable as it more
closely tracks the physical flow of its inventory, better matches
revenue with expenses, aligns with how the company internally
manages its business, and improves comparability with peers.
The effects of the change in accounting method from LIFO to average
cost have been retrospectively applied to all periods
presented.
For additional information on the company’s change from LIFO to
the average cost accounting method, please refer to the Form 8-K
that the company filed with the Securities and Exchange Commission
today, which includes recast financial statements for the prior
three years reflecting this voluntary change. Nothing in that
Form 8-K shall be deemed to be incorporated into this
release.
First Quarter 2018 Earnings Conference Call
TodayAK Steel will provide live listening access on its
website for the company’s earnings conference call today at 11:00
a.m. Eastern Time (April 30, 2018). A link to the
webcast is on the company’s home page at www.aksteel.com.
Presentation slides will also be available on the webcast link and
under the Investor Presentations section on the website. The
webcast will be archived on the company’s website until May 7,
2018 and will be accessible from the home page.
AK SteelAK Steel is a leading producer of
flat-rolled carbon, stainless and electrical steel products,
primarily for the automotive, infrastructure and manufacturing,
electrical power generation and distribution markets. Through
its subsidiaries, the company also provides customer solutions with
carbon and stainless steel tubing products, die design and tooling,
and hot- and cold-stamped components. Headquartered in West
Chester, Ohio (Greater Cincinnati), the company has approximately
9,200 employees at manufacturing operations in the United States,
as well as in Canada and Mexico. Additional information about
AK Steel is available at www.aksteel.com.
Forward-Looking StatementsCertain statements
made or incorporated by reference in this earnings release reflect
management’s estimates and beliefs and are intended to be
“forward-looking statements” identified in the safe harbor
provisions of the Private Securities Litigation Reform Act of
1995. Words such as “expects,” “anticipates,” “believes,”
“intends,” “plans,” “estimates” and other similar references to
future periods typically identify forward-looking statements.
The company cautions readers that forward-looking statements
reflect the company’s current beliefs and judgments, but are not
guarantees of future performance or outcomes. They are based
on a number of assumptions and estimates that are inherently
affected by economic, competitive, regulatory, and operational
risks, uncertainties and contingencies that are beyond the
company’s control, and upon assumptions about future business
decisions and conditions that may change.
Forward-looking statements are only predictions and involve
risks and uncertainties, resulting in the possibility that actual
events or performance will differ materially from such predictions
as a result of certain risk factors. Such factors that could
cause the company’s actual results and financial condition to
differ materially from the results contemplated by such
forward-looking statements include reduced selling prices,
shipments and profits associated with a highly competitive and
cyclical industry; domestic and global steel overcapacity; risks
related to U.S. government actions on Section 232 and 301, NAFTA
and/or other trade agreements, treaties or policies; changes in the
cost of raw materials, supplies and energy; the company’s
significant amount of debt and other obligations; severe financial
hardship or bankruptcy of one or more of the company’s major
customers or key suppliers; the company’s significant proportion of
sales to the automotive market; reduced demand in key product
markets due to competition from aluminum or other alternatives to
steel; excess inventory of raw materials; supply chain disruptions
or poor quality of raw materials or supplies; production disruption
or reduced production levels; the company’s healthcare and pension
obligations; not reaching new labor agreements on a timely basis;
major litigation, arbitrations, environmental issues and other
contingencies; regulatory compliance and changes; climate change
and greenhouse gas emissions; conditions in the financial, credit,
capital and banking markets; the company’s use of derivative
contracts to hedge commodity pricing volatility; potential
permanent idling of facilities; inability to fully realize benefits
of margin enhancement initiatives; information technology security
threats, cybercrime and exposure of private information; the
company’s failure to achieve expected benefits of the Precision
Partners acquisition and/or to integrate Precision Partners
successfully; and changes in tax laws and regulations; as well as
those risks and uncertainties discussed in more detail in the
company’s Annual Report on Form 10-K for the year ended
December 31, 2017, and its subsequent Quarterly Reports on
Form 10-Q and Current Reports on Form 8-K filed with or furnished
to the Securities and Exchange Commission. As such, the
company cautions readers not to place undue reliance on
forward-looking statements, which speak only to the company’s
plans, assumptions and expectations as of the date hereof.
The company undertakes no obligation to publicly update any
forward-looking statement, except as required by law.
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED STATEMENTS OF
OPERATIONS |
(Unaudited) |
(Dollars and shares in millions, except per share and
per ton data) |
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Flat-rolled steel
shipments (000 tons) |
|
1,430.9 |
|
|
1,456.2 |
|
Selling price per
flat-rolled steel ton |
|
$ |
1,045 |
|
|
$ |
1,005 |
|
|
|
|
|
|
Net
sales |
|
$ |
1,658.9 |
|
|
$ |
1,533.4 |
|
|
|
|
|
|
Cost of products
sold |
|
1,463.7 |
|
|
1,276.9 |
|
Selling and
administrative expenses |
|
76.7 |
|
|
71.7 |
|
Depreciation |
|
54.9 |
|
|
55.1 |
|
Total
operating costs |
|
1,595.3 |
|
|
1,403.7 |
|
Operating
profit |
|
63.6 |
|
|
129.7 |
|
Interest expense |
|
37.6 |
|
|
39.4 |
|
Pension and OPEB
(income) expense |
|
(10.0 |
) |
|
(18.1 |
) |
Other (income)
expense |
|
(3.9 |
) |
|
7.8 |
|
Income before
income taxes |
|
39.9 |
|
|
100.6 |
|
Income tax expense
(benefit) |
|
(4.9 |
) |
|
— |
|
Net
income |
|
44.8 |
|
|
100.6 |
|
Less: Net income
attributable to noncontrolling interests |
|
16.1 |
|
|
16.2 |
|
Net income
attributable to AK Steel Holding Corporation |
|
$ |
28.7 |
|
|
$ |
84.4 |
|
|
|
|
|
|
Net income per
share attributable to AK Steel Holding Corporation: |
|
|
|
|
Basic |
|
$ |
0.09 |
|
|
$ |
0.27 |
|
Diluted |
|
$ |
0.09 |
|
|
$ |
0.26 |
|
Weighted-average shares outstanding: |
|
|
|
|
Basic |
|
314.7 |
|
|
314.1 |
|
Diluted |
|
316.0 |
|
|
325.6 |
|
Note: The company adopted a new accounting standards
update for the presentation of pension and other postretirement
benefits (income) expense effective January 1, 2018 and
reclassified the prior-period presentation. The adoption of this
standard update had no effect on net income.
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(Dollars in millions, except per share amounts) |
|
|
|
|
|
|
|
March 31, 2018 |
|
December 31, 2017 |
ASSETS |
|
|
|
|
Current assets: |
|
|
|
|
Cash and
cash equivalents |
|
$ |
44.5 |
|
|
$ |
38.0 |
|
Accounts
receivable, net |
|
619.8 |
|
|
517.8 |
|
Inventory |
|
1,334.0 |
|
|
1,385.0 |
|
Other
current assets |
|
96.4 |
|
|
130.3 |
|
Total
current assets |
|
2,094.7 |
|
|
2,071.1 |
|
Property, plant and
equipment |
|
6,850.7 |
|
|
6,831.8 |
|
Accumulated
depreciation |
|
(4,899.7 |
) |
|
(4,845.6 |
) |
Property, plant and
equipment, net |
|
1,951.0 |
|
|
1,986.2 |
|
Other non-current
assets |
|
412.0 |
|
|
417.5 |
|
TOTAL
ASSETS |
|
$ |
4,457.7 |
|
|
$ |
4,474.8 |
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Current
liabilities: |
|
|
|
|
Accounts
payable |
|
$ |
728.6 |
|
|
$ |
690.4 |
|
Accrued
liabilities |
|
234.1 |
|
|
270.5 |
|
Current
portion of pension and other postretirement benefit
obligations |
|
39.7 |
|
|
40.1 |
|
Total
current liabilities |
|
1,002.4 |
|
|
1,001.0 |
|
Non-current
liabilities: |
|
|
|
|
Long-term
debt |
|
2,103.3 |
|
|
2,110.1 |
|
Pension
and other postretirement benefit obligations |
|
869.2 |
|
|
894.2 |
|
Other
non-current liabilities |
|
150.9 |
|
|
168.9 |
|
TOTAL
LIABILITIES |
|
4,125.8 |
|
|
4,174.2 |
|
|
|
|
|
|
Equity: |
|
|
|
|
Common
stock, authorized 450,000,000 shares of $0.01 par value each;
issued 316,330,695 and 315,782,764 shares in 2018 and 2017;
outstanding 315,279,677 and 314,884,569 shares in 2018 and
2017 |
|
3.2 |
|
|
3.2 |
|
Additional paid-in capital |
|
2,889.3 |
|
|
2,884.8 |
|
Treasury
stock, common shares at cost, 1,051,018 and 898,195 shares in 2018
and 2017 |
|
(6.4 |
) |
|
(5.4 |
) |
Accumulated deficit |
|
(2,849.1 |
) |
|
(2,877.0 |
) |
Accumulated other comprehensive loss |
|
(56.1 |
) |
|
(50.2 |
) |
Total
stockholders’ equity (deficit) |
|
(19.1 |
) |
|
(44.6 |
) |
Noncontrolling interests |
|
351.0 |
|
|
345.2 |
|
TOTAL
EQUITY |
|
331.9 |
|
|
300.6 |
|
TOTAL
LIABILITIES AND EQUITY |
|
$ |
4,457.7 |
|
|
$ |
4,474.8 |
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
CONSOLIDATED STATEMENTS OF CASH
FLOWS |
(Unaudited) |
(Dollars in millions) |
|
|
|
|
|
Three Months ended March 31, |
|
|
2018 |
|
2017 |
Cash flows from
operating activities: |
|
|
|
|
Net
income |
|
$ |
44.8 |
|
|
$ |
100.6 |
|
Depreciation |
|
51.1 |
|
|
51.0 |
|
Depreciation—SunCoke Middletown |
|
3.8 |
|
|
4.1 |
|
Amortization |
|
10.0 |
|
|
7.2 |
|
Deferred
income taxes |
|
(6.8 |
) |
|
1.5 |
|
Pension
and OPEB expense (income) |
|
(8.1 |
) |
|
(16.2 |
) |
Contributions to pension trust |
|
(6.0 |
) |
|
— |
|
Other
postretirement benefit payments |
|
(10.1 |
) |
|
(11.4 |
) |
Changes
in working capital |
|
0.2 |
|
|
(92.5 |
) |
Other
operating items, net |
|
(13.3 |
) |
|
(8.0 |
) |
Net cash
flows from operating activities |
|
65.6 |
|
|
36.3 |
|
|
|
|
|
|
Cash flows from
investing activities: |
|
|
|
|
Capital
investments |
|
(37.9 |
) |
|
(32.5 |
) |
Other
investing items, net |
|
— |
|
|
1.5 |
|
Net cash
flows from investing activities |
|
(37.9 |
) |
|
(31.0 |
) |
|
|
|
|
|
Cash flows from
financing activities: |
|
|
|
|
Net
borrowings (payments) under credit facility |
|
(10.0 |
) |
|
— |
|
Proceeds
from issuance of long-term debt |
|
— |
|
|
400.0 |
|
Redemption of long-term debt |
|
— |
|
|
(367.5 |
) |
Debt
issuance costs |
|
— |
|
|
(7.8 |
) |
SunCoke
Middletown distributions to noncontrolling interest owners |
|
(10.3 |
) |
|
(15.1 |
) |
Other
financing items, net |
|
(0.9 |
) |
|
(2.4 |
) |
Net cash
flows from financing activities |
|
(21.2 |
) |
|
7.2 |
|
|
|
|
|
|
Net increase (decrease)
in cash and cash equivalents |
|
6.5 |
|
|
12.5 |
|
Cash and cash
equivalents, beginning of period |
|
38.0 |
|
|
173.2 |
|
Cash and cash
equivalents, end of period |
|
$ |
44.5 |
|
|
$ |
185.7 |
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING
CORPORATIONNON-GAAP FINANCIAL
MEASURES(Unaudited)(Dollars in millions)
In certain of its disclosures in this news release,
the company has reported adjusted EBITDA and EBITDA margin that
exclude the effects of noncontrolling interests. EBITDA is an
acronym for earnings before interest, taxes, depreciation and
amortization. It is a metric that is sometimes used to
compare the results of different companies by removing the effects
of different factors that might otherwise make comparisons
inaccurate or inappropriate. For purposes of this news
release, the company has made adjustments to EBITDA to exclude the
effect of noncontrolling interests. The adjusted results,
although not financial measures under generally accepted accounting
principles (“GAAP”) and not identically applied by other companies,
facilitate the ability to analyze the company’s financial results
in relation to those of its competitors and to the company’s prior
financial performance by excluding items that otherwise would
distort the comparison. Adjusted EBITDA and adjusted
EBITDA margin are not, however, intended as alternative measures of
operating results or cash flow from operations as determined in
accordance with GAAP and are not necessarily comparable to
similarly titled measures used by other companies.
Neither current nor potential investors in the company’s
securities should rely on adjusted EBITDA or adjusted EBITDA margin
as a substitute for any GAAP financial measure and the company
encourages current and potential investors to review the following
reconciliation of adjusted EBITDA.
Reconciliation of Adjusted
EBITDA
(dollars
in millions, except per ton) |
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Net income attributable
to AK Steel Holding |
|
$ |
28.7 |
|
|
$ |
84.4 |
|
Net income attributable
to noncontrolling interests |
|
16.1 |
|
|
16.2 |
|
Income tax expense
(benefit) |
|
(4.9 |
) |
|
— |
|
Interest expense |
|
37.6 |
|
|
39.4 |
|
Interest income |
|
(0.2 |
) |
|
(0.4 |
) |
Depreciation |
|
54.9 |
|
|
55.1 |
|
Amortization |
|
6.4 |
|
|
3.8 |
|
EBITDA |
|
138.6 |
|
|
198.5 |
|
Less: EBITDA of
noncontrolling interests (a) |
|
19.9 |
|
|
20.3 |
|
Adjusted EBITDA |
|
$ |
118.7 |
|
|
$ |
178.2 |
|
Adjusted EBITDA
margin |
|
7.2 |
% |
|
11.6 |
% |
(a) |
The reconciliation of EBITDA of noncontrolling interests to net
income attributable to noncontrolling interests is as follows: |
|
(dollars in millions) |
|
Three Months Ended March 31, |
|
|
|
2018 |
|
2017 |
|
Net
income attributable to noncontrolling interests |
|
$ |
16.1 |
|
|
$ |
16.2 |
|
|
Depreciation |
|
3.8 |
|
|
4.1 |
|
|
EBITDA of
noncontrolling interests |
|
$ |
19.9 |
|
|
$ |
20.3 |
|
|
|
|
|
|
|
|
|
|
|
|
AK STEEL HOLDING CORPORATION |
FLAT-ROLLED STEEL SHIPMENTS |
(Unaudited) |
(Tons in thousands) |
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
|
2018 |
|
2017 |
Tons Shipped by
Product |
|
|
|
|
Stainless/electrical |
|
200.7 |
|
|
209.9 |
|
Coated |
|
734.5 |
|
|
779.3 |
|
Cold-rolled |
|
282.5 |
|
|
246.2 |
|
Hot-rolled |
|
174.3 |
|
|
178.6 |
|
Other |
|
38.9 |
|
|
42.2 |
|
Total
shipments |
|
1,430.9 |
|
|
1,456.2 |
|
|
|
|
|
|
Shipments by
Product (%) |
|
|
|
|
Stainless/electrical |
|
14 |
% |
|
14 |
% |
Coated |
|
51 |
% |
|
54 |
% |
Cold-rolled |
|
20 |
% |
|
17 |
% |
Hot-rolled |
|
12 |
% |
|
12 |
% |
Other |
|
3 |
% |
|
3 |
% |
Total
shipments |
|
100 |
% |
|
100 |
% |
|
|
|
|
|
|
|
Contacts:Media – Lisa H. Jester, Corporate
Manager, Communications and Public Relations (513)
425-2510Investors – Douglas O. Mitterholzer, General Manager,
Investor Relations (513) 425-5215
AK Steel (NYSE:AKS)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
AK Steel (NYSE:AKS)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024