CMC
$36.63
Commercial Metals
($.39)
(1.05%)
Earnings Details
2nd Quarter February 2022
Thursday, March 17, 2022 6:45:00 AM
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Summary

Commercial Metals Beats

Commercial Metals (CMC) reported 2nd Quarter February 2022 earnings of $1.53 per share on revenue of $2.0 billion. The consensus earnings estimate was $1.28 per share on revenue of $1.9 billion. The Earnings Whisper number was $1.49 per share. Revenue grew 37.4% on a year-over-year basis.

Commercial Metals Co recycles, manufactures, fabricates and distributes steel and metal products and related materials and services through a network of locations throughout the United States and internationally.

Results
Reported Earnings
$1.53
Earnings Whisper
$1.49
Consensus Estimate
$1.28
Reported Revenue
$2.01 Bil
Revenue Estimate
$1.90 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Commercial Metals Company Reports Record Second Quarter Fiscal 2022 Results

  • Achieved record quarterly Earnings from Continuing Operations of $383.3 million, or $3.12 per diluted share
  • Core EBITDA from continuing operations of $323.1 million increased 89% from the prior year period; trailing twelve-month Core EBITDA from continuing operations totaled over $1.1 billion
  • North America downstream backlog grew 9% year-over-year; new project bid volumes reached record second quarter level, underpinning robust demand outlook
  • Continued advancement in CMC's growth strategy -- Pending acquisition of Tensar Corporation expected to close during fiscal third quarter; Arizona 2 project remains on-track for early calendar 2023 startup

IRVING, Texas, March 17, 2022 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal second quarter ended February 28, 2022.  Earnings from continuing operations were $383.3 million, or $3.12 per diluted share, on net sales of $2.0 billion, compared to prior year period earnings from continuing operations of $66.2 million, or $0.54 per diluted share, on net sales of $1.5 billion.

During the second quarter of fiscal 2022, the Company recorded a net after-tax benefit of $195.8 million related to the gain recorded on the $313.0 million sale of its Southern California real estate, which was partially offset by costs associated with the opportunistic debt financings completed during the quarter.  Excluding this benefit, second quarter adjusted earnings from continuing operations were $187.6 million, or $1.53 per diluted share, compared to adjusted earnings from continuing operations of $79.8 million, or $0.66 per diluted share, in the prior year period.  "Adjusted EBITDA from continuing operations," "core EBITDA from continuing operations," "adjusted earnings from continuing operations" and "adjusted earnings from continuing operations per diluted share" are non-GAAP financial measures. Details, including a reconciliation of each such non-GAAP financial measure to the most directly comparable measure prepared and presented in accordance with GAAP, can be found in the financial tables that follow.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said, "Outstanding operational execution, combined with strong end-market demand, produced the second-best financial performance in CMC's 107-year history, behind only the previous quarter.  I am extremely proud of CMC's entire team as they continue to optimize our business, improve efficiency and deliver the high-quality service our customers have come to expect, while also advancing CMC's strategic vision.  During the last twelve months, CMC generated core EBITDA from continuing operations of more than $1.1 billion, a clear demonstration of the earnings power created by the strategic actions taken in past years that have enabled us to take full advantage of current market conditions."

Ms. Smith continued, "We look forward to building on CMC's already world-class assets and operating platform with the addition of Tensar Corporation and the commissioning of our energy efficient rebar and merchant bar-capable Arizona 2 micro mill project.  This growth, together with our recently announced micro mill in the Eastern U.S., represents the next chapter in CMC's compelling story, which we expect will propel our organization to an even higher level of through-the-cycle earnings and return on capital."

Augmented by proceeds from the Southern California real estate sale and the opportunistic debt financing during the quarter, the Company's cash and cash equivalents as of February 28, 2022 grew to $846.6 million. In addition, $684.9 million remained available under the Company's credit and accounts receivable facilities.  This liquidity will be partially used to fund the acquisition of Tensar Corporation when the transaction closes.

On March 16, 2022, the board of directors declared a quarterly dividend of $0.14 per share of CMC common stock payable to stockholders of record on March 30, 2022. The dividend to be paid on April 13, 2022 marks 230 consecutive quarterly payments by the Company, and represents a 17% increase from the dividend paid in April 2021

Business Segments - Fiscal Second Quarter 2022 Review
Demand conditions for CMC's finished steel products in North America were again robust during the quarter, with several key internal and external indicators pointing toward continued strength.  Downstream bid volumes, a key indicator of the construction project pipeline, increased meaningfully from a year ago, while contract backlog also experienced growth.  Demand from industrial end markets continued to trend positively, with most end use applications increasing compared to the prior year period.

The North America segment reported adjusted EBITDA of $535.5 million for the second quarter of fiscal 2022.  Excluding a $273.3 million gain related to the sale of Southern California real estate, the segment generated adjusted EBITDA of $262.1 million for the quarter, an increase of 53% compared to $171.6 million in the prior year period.  This improvement was driven by record margins on sales of both steel products and raw materials.  Steel products have experienced four consecutive quarters of year-over-year margin expansion, while margins on raw material sales have grown for eight consecutive quarters.  Controllable costs per ton of finished steel shipped increased in comparison to the first fiscal quarter primarily as a result of scheduled routine maintenance, which reduced production levels, as well as the impact of higher per unit purchase costs for freight and alloys.

Shipment volumes of finished steel, which include steel products and downstream products, followed typical seasonal patterns, but decreased approximately 10% from the prior year second quarter.  The decline reflects the unusually strong steel product shipments that occurred during the prior year quarter.  In addition, shipments this year were influenced by widespread weather challenges during the quarter, contributing to the year-over-year decline in volumes.

The average selling price for steel products increased by $346 per ton compared to the second quarter of fiscal 2021, while the cost of scrap utilized rose $92 per ton.  The result was a year-over-year increase in margin over scrap of $254 per ton.  The average selling price for downstream products increased by nearly $240 per ton from the prior year period and $77 per ton on a sequential basis.  Future pricing indicators on new work entering the backlog remain positive, as average price levels for bids and new awards climbed significantly from the prior year period. 

The Europe segment reported record adjusted EBITDA of $81.1 million for the second quarter of fiscal 2022, up 404% compared to adjusted EBITDA of $16.1 million for the prior year quarter.  The improvement was driven by a significant expansion in margin over scrap and the addition of CMC Poland's third rolling line, as well as the absence of a major maintenance program that occurred in the prior year period.  Similar to North America, underlying demand for steel products remained robust.  Volumes of rebar, merchant bar, and wire rod each increased on a year-over-year basis, assisted by the new rolling line, which has improved production flexibility and the mill's ability to capitalize on favorable market conditions.  Average selling price increased by $319 per ton compared to the prior year quarter, driving a significant increase in margin over scrap of $203 per ton.

Outlook
Ms. Smith said, "We continue to anticipate strong fiscal year 2022 financial and operational performance.  Current robust demand for each of CMC's major product lines is expected to persist throughout the upcoming spring and summer construction season, underpinned by our growing downstream backlog as well as solid levels of new work entering the project pipeline.  The war in Ukraine raises significant geopolitical and economic risks that we are monitoring closely.  To date, CMC has not experienced any disruptions to our operations, workforce, or end-market demand."

"Shipment volumes of finished steel products have historically increased from second quarter levels, driven by seasonal factors, and we expect shipments during the third quarter of fiscal 2022 to follow these trends.  We anticipate strong third quarter financial results, with margins remaining at high levels," Ms. Smith added.

Conference Call
CMC invites you to listen to a live broadcast of its second quarter fiscal 2022 conference call today, Thursday, March 17, 2022, at 11:00 a.m. ETBarbara R. Smith, Chairman of the Board, President and Chief Executive Officer, and Paul Lawrence, Senior Vice President and Chief Financial Officer, 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 our website on the next business day. Financial and statistical information presented in the broadcast are located on CMC's website under "Investors."

About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products and provide related materials and services through a network of facilities that includes seven electric arc furnace ("EAF") mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States and Poland.

Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the impact of the Russian invasion of Ukraine, the effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies and organic growth provided by acquisitions and strategic investments, demand for our products, metal margins, the effect of COVID-19 and related governmental and economic responses thereto, the ability to operate our steel mills at full capacity, future availability and cost of supplies of raw materials and energy for our operations, share repurchases, legal proceedings, the undistributed earnings of our non-U.S. subsidiaries, U.S. non-residential construction activity, international trade, capital expenditures, our liquidity and our ability to satisfy future liquidity requirements, the proposed Tensar acquisition and the timing thereof, estimated contractual obligations, the expected capabilities and benefits of new facilities, the timeline for execution of our growth plan, and our expectations or beliefs concerning future events. The statements in this release that are not historical statements, are forward-looking statements. These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "future," "intends," "may," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases, as well as by discussions of strategy, plans, or intentions.

Our forward-looking statements are based on management's expectations and beliefs as of the time this news release was prepared. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially. Except as required by law, we undertake 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 circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in our filings with the Securities and Exchange Commission, including, but not limited to, in Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K for the fiscal year ended August 31, 2021, as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our downstream contracts due to rising commodity pricing; impacts from COVID-19 on the economy, demand for our products, global supply chain and on our operations, including the responses of governmental authorities to contain COVID-19 and the impact of various COVID-19 vaccines; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; the impact of the Russian invasion of Ukraine on the global economy, energy supplies and raw materials, which is uncertain, but may prove to negatively impact our business and operations; compliance with and changes in existing and future laws, regulations and other legal requirements and judicial decisions that govern our business, including increased environmental regulations associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; evolving remediation technology, changing regulations, possible third-party contributions, the inherent uncertainties of the estimation process and other factors that may impact amounts accrued for environmental liabilities; potential limitations in our or our customers' abilities to access credit and non-compliance of their contractual obligations, including payment obligations; activity in repurchasing shares of our common stock under our repurchase program; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate and integrate acquisitions, and the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; operating and startup risks, as well as market risks associated with the commissioning of new projects could prevent us from realizing anticipated benefits and could result in a loss of all or a substantial part of our investments; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; impact of goodwill impairment charges; impact of long-lived asset impairment charges; currency fluctuations; global factors, such as trade measures, military conflicts and political uncertainties, including changes to current trade regulations, such as Section 232 trade tariffs and quotas, tax legislation and other regulations which might adversely impact our business; availability and pricing of electricity, electrodes and natural gas for mill operations; ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and civil unrest, protests and riots.


COMMERCIAL METALS COMPANY
FINANCIAL & OPERATING STATISTICS (UNAUDITED)



Three Months Ended


Six Months Ended

(in thousands, except per ton amounts)


2/28/2022


11/30/2021


8/31/2021


5/31/2021


2/28/2021


2/28/2022


2/28/2021

North America















Net sales


$  1,614,224


$  1,653,622


$  1,660,409


$  1,558,068


$  1,257,486


$  3,267,846


$  2,452,499

Adjusted EBITDA


535,463


268,524


212,018


207,330


171,612


803,987


327,246
















External tons shipped















Raw materials


329


334


331


368


302


663


632

Rebar


407


442


469


500


472


849


958

Merchant and other


245


257


302


289


268


502


532

Steel products


652


699


771


789


740


1,351


1,490

Downstream products


327


400


415


408


343


727


714
















Average selling price per ton















Raw materials


$       1,103


$       1,034


$       1,069


$           949


$           846


$       1,068


$           733

Steel products


1,041


976


900


794


695


1,007


653

Downstream products


1,169


1,092


1,014


963


929


1,126


931
















Cost of raw materials per ton


$           834


$           766


$           805


$           697


$           629


$           800


$           540

Cost of ferrous scrap utilized per ton


436


428


434


369


344


432


304
















Steel products metal margin per ton


$           605


$           548


$           466


$           425


$           351


$           575


$           349































Europe















Net sales


$   395,758


$   329,056


$   368,290


$   284,107


$   202,066


$   724,814


$   396,662

Adjusted EBITDA


81,149


79,832


67,676


50,005


16,107


160,981


30,577
















External tons shipped















Rebar


172


103


174


141


78


275


206

Merchant and other


278


262


286


263


275


540


544

Steel products


450


365


460


404


353


815


750
















Average selling price per ton















Steel products


$           851


$           869


$           763


$           664


$           532


$           859


$           495
















Cost of ferrous scrap utilized per ton


$           444


$           434


$           448


$           376


$           328


$           439


$           296
















Steel products metal margin per ton


$           407


$           435


$           315


$           288


$           204


$           420


$           199

 

 


COMMERCIAL METALS COMPANY

BUSINESS SEGMENTS (UNAUDITED)

(in thousands)


Three Months Ended


Six Months Ended

Net sales


2/28/2022


11/30/2021


8/31/2021


5/31/2021


2/28/2021


2/28/2022


2/28/2021

North America


$ 1,614,224


$ 1,653,622


$ 1,660,409


$ 1,558,068


$ 1,257,486


$ 3,267,846


$ 2,452,499

Europe


395,758


329,056


368,290


284,107


202,066


724,814


396,662

Corporate and Other


(1,094)


(877)


1,947


2,866


2,718


(1,971)


4,912

Total net sales


$ 2,008,888


$ 1,981,801


$ 2,030,646


$ 1,845,041


$ 1,462,270


$ 3,990,689


$ 2,854,073
















Adjusted EBITDA from continuing operations















North America


$    535,463


$    268,524


$    212,018


$    207,330


$    171,612


$    803,987


$    327,246

Europe


81,149


79,832


67,676


50,005


16,107


160,981


30,577

Corporate and Other


(52,493)


(34,334)


(31,897)


(36,214)


(45,986)


(86,827)


(72,457)

 

 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)


Three Months Ended February 28,


Six Months Ended February 28,

(in thousands, except share and per share data)

2022


2021


2022


2021

Net sales

$       2,008,888


$       1,462,270


$       3,990,689


$       2,854,073

Costs and operating expenses (income):








Cost of goods sold

1,614,965


1,228,343


3,201,375


2,403,162

Selling, general and administrative expenses

127,985


120,829


251,563


234,525

Loss on debt extinguishment

16,052


16,841


16,052


16,841

Interest expense

12,011


14,021


23,046


28,280

Asset impairments

1,228


474


1,228


4,068

Gain on sale of assets

(273,099)


(5,412)


(274,082)


(5,481)


1,499,142


1,375,096


3,219,182


2,681,395

Earnings from continuing operations before income taxes

509,746


87,174


771,507


172,678

Income taxes

126,432


20,941


155,304


42,534

Earnings from continuing operations

383,314


66,233


616,203


130,144









Earnings from discontinued operations before income taxes


197



447

Income taxes


73



141

Earnings from discontinued operations


124



306









Net earnings

$           383,314


$             66,357


$           616,203


$           130,450









Basic earnings per share (1)








Earnings from continuing operations

$                 3.16


$                 0.55


$                 5.08


$                 1.08

Earnings from discontinued operations




Net earnings

$                 3.16


$                 0.55


$                 5.08


$                 1.09









Diluted earnings per share (1)








Earnings from continuing operations

$                 3.12


$                 0.54


$                 5.02


$                 1.07

Earnings from discontinued operations




Net earnings

$                 3.12


$                 0.55


$                 5.02


$                 1.07









Cash dividends per share

$                 0.14


$                 0.12


$                 0.28


$                 0.24

Average basic shares outstanding

121,458,196


120,345,432


121,293,030


120,052,459

Average diluted shares outstanding

122,852,410


121,751,859


122,747,981


121,672,194








(1)

Earnings Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding.

 

 


COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share and per share data)


February 28, 2022


August 31, 2021

Assets





Current assets:





Cash and cash equivalents


$             846,587


$            497,745

Restricted cash


153,113


3,384

Accounts receivable (less allowance for doubtful accounts of $5,446 and $5,553)


1,153,868


1,105,580

Inventories, net


1,142,446


935,387

Prepaid and other current assets


192,096


169,649

Assets held for sale


2,138


25,083

Total current assets


3,490,248


2,736,828

Property, plant and equipment, net


1,649,264


1,566,123

Goodwill


65,775


66,137

Other noncurrent assets


298,933


269,583

Total assets


$          5,504,220


$         4,638,671

Liabilities and stockholders' equity





Current liabilities:





Accounts payable


$             414,025


$            450,723

Accrued expenses and other payables


383,622


475,384

Current maturities of long-term debt and short-term borrowings


27,554


54,366

Total current liabilities


825,201


980,473

Deferred income taxes


146,179


112,067

Other noncurrent liabilities


217,138


235,607

Long-term debt


1,445,755


1,015,415

Total liabilities


2,634,273


2,343,562

Stockholders' equity:





Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 121,495,868 and 120,586,589 shares


1,290


1,290

Additional paid-in capital


366,162


368,064

Accumulated other comprehensive loss


(91,876)


(84,820)

Retained earnings


2,745,117


2,162,925

Less treasury stock, 7,564,796 and 8,474,075 shares at cost


(150,978)


(152,582)

Stockholders' equity


2,869,715


2,294,877

Stockholders' equity attributable to non-controlling interests


232


232

Total stockholders' equity


2,869,947


2,295,109

Total liabilities and stockholders' equity


$          5,504,220


$         4,638,671

 

 


COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



Six Months Ended February 28,

(in thousands)


2022


2021

Cash flows from (used by) operating activities:





Net earnings


$           616,203


$           130,450

Adjustments to reconcile net earnings to cash flows from (used by) operating activities:





Depreciation and amortization


82,360


83,372

Stock-based compensation


25,870


21,758

Deferred income taxes and other long-term taxes


34,980


(8,129)

Loss on debt extinguishment


16,052


16,841

Asset impairments


1,228


4,068

Other


835


(105)

Amortization of acquired unfavorable contract backlog



(3,032)

Net gain on disposals of assets and other


(274,082)


(5,481)

Changes in operating assets and liabilities


(449,078)


(238,539)

Net cash flows from operating activities


54,368


1,203

Cash flows from (used by) investing activities:





Proceeds from the sale of property, plant and equipment and other


309,563


20,338

Capital expenditures


(191,562)


(87,688)

Proceeds from insurance


3,081


Net cash flows from (used by) investing activities


121,082


(67,350)

Cash flows from (used by) financing activities:





Proceeds from issuance of long-term debt, net


740,403


296,250

Repayments of long-term debt


(313,174)


(357,792)

Debt extinguishment costs


(13,642)


(13,051)

Debt issuance costs


(2,977)


(1,124)

Proceeds from accounts receivable facilities


190,730


8,848

Repayments under accounts receivable facilities


(215,196)


(8,848)

Dividends


(34,011)


(28,833)

Treasury stock acquired


(17,010)


Stock issued under incentive and purchase plans, net of forfeitures


(10,719)


(4,536)

Contribution from non-controlling interest



19

Net cash flows from (used by) financing activities


324,404


(109,067)

Effect of exchange rate changes on cash


(1,283)


(419)

Increase (decrease) in cash, restricted cash, and cash equivalents


498,571


(175,633)

Cash, restricted cash and cash equivalents at beginning of period


501,129


544,964

Cash, restricted cash and cash equivalents at end of period


$           999,700


$           369,331






Supplemental information:





Cash paid for income taxes


$           133,194


$             48,757

Cash paid for interest


$             24,916


$             34,094






Noncash activities:





Liabilities related to additions of property, plant and equipment


$             35,781


$             16,252






Cash and cash equivalents


$           846,587


$           367,347

Restricted cash


153,113


1,984

Total cash, restricted cash and cash equivalents


$           999,700


$           369,331

 

COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This press release contains financial measures not derived in accordance with U.S. generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measure are provided below.

Adjusted EBITDA from continuing operations, core EBITDA from continuing operations and adjusted earnings from continuing operations are non-GAAP financial measures. Adjusted earnings from continuing operations per diluted share is defined as adjusted earnings from continuing operations on a diluted per share basis.

Non-GAAP financial measures should be viewed in addition to, and not as alternatives for, the most directly comparable measures derived in accordance with GAAP and may not be comparable to similar measures presented by other companies. However, we believe that the non-GAAP financial measures provide relevant and useful information to management, investors, analysts, creditors and other interested parties in our industry as they allow: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our underlying business operational performance; and (iii) the assessment of period-to-period performance trends. Management uses non-GAAP financial measures to evaluate financial performance and set target benchmarks for annual and long-term cash incentive performance plans.

A reconciliation of earnings from continuing operations to adjusted EBITDA from continuing operations and core EBITDA from continuing operations is provided below:


Three Months Ended


Six Months Ended

(in thousands)

2/28/2022


11/30/2021


8/31/2021


5/31/2021


2/28/2021


2/28/2022


2/28/2021

Earnings from continuing operations

$  383,314


$  232,889


$  152,313


$  130,408


$  66,233


$  616,203


$  130,144

Interest expense

12,011


11,035


11,659


11,965


14,021


23,046


28,280

Income taxes

126,432


28,872


40,444


38,175


20,941


155,304


42,534

Depreciation and amortization

41,134


41,226


42,437


41,804


41,573


82,360


83,372

Amortization of acquired unfavorable contract backlog



(1,495)


(1,508)


(1,509)



(3,032)

Asset impairments

1,228



2,439


277


474


1,228


4,068

Adjusted EBITDA from continuing operations

564,119


314,022


247,797


221,121


141,733


878,141


285,366

Non-cash equity compensation

16,251


9,619


8,119


13,800


12,696


25,870


21,758

Acquisition and integration related costs and other


3,165





3,165


Gain on sale of assets

(273,315)




(4,457)


(5,877)


(273,315)


(5,877)

Loss on debt extinguishment

16,052





16,841


16,052


16,841

Facility closure





5,694



10,908

Labor cost government refund







(1,348)

Core EBITDA from continuing operations

$  323,107


$  326,806


$  255,916


$  230,464


$  171,087


$  649,913


$  327,648

A reconciliation of earnings from continuing operations to adjusted earnings from continuing operations is provided below:


Three Months Ended


Six Months Ended

(in thousands)

2/28/2022


11/30/2021


8/31/2021


5/31/2021


2/28/2021


2/28/2022


2/28/2021

Earnings from continuing operations

$  383,314


$  232,889


$  152,313


$  130,408


$  66,233


$  616,203


$  130,144

Gain on sale of assets

(273,315)




(4,457)


(5,877)


(273,315)


(5,877)

Loss on debt extinguishment

16,052





16,841


16,052


16,841

Asset impairments

1,228



2,439


277


474


1,228


4,068

Acquisition and integration related costs and other


3,165





3,165


Facility closure





5,694



10,908

Labor cost government refund







(1,348)

Total adjustments (pre-tax)

$ (256,035)


$    3,165


$    2,439


$   (4,180)


$  17,132


$ (252,870)


$  24,592















Tax items














International restructuring


(36,237)





(36,237)


Related tax effects on adjustments

60,274


(665)


(512)


878


(3,598)


59,609


(5,191)

Total tax items

$     60,274


$   (36,902)


$        (512)


$         878


$    (3,598)


$     23,372


$     (5,191)

Adjusted earnings from continuing operations

$   187,553


$  199,152


$  154,240


$  127,106


$   79,767


$   386,705


$  149,545

Earnings from continuing operations per diluted share

$         3.12


$        1.90


$        1.24


$        1.07


$       0.54


$         5.02


$        1.07

Adjusted earnings from continuing operations per diluted share

$         1.53


$        1.62


$        1.26


$        1.04


$       0.66


$         3.15


$       1.23

 

Cision View original content:https://www.prnewswire.com/news-releases/commercial-metals-company-reports-record-second-quarter-fiscal-2022-results-301504798.html

SOURCE Commercial Metals Company