CMC
$17.58
Commercial Metals
($.09)
(.51%)
Earnings Details
4th Quarter August 2018
Thursday, October 25, 2018 6:45:00 AM
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Summary

Commercial Metals (CMC) Recent Earnings

Commercial Metals (CMC) reported 4th Quarter August 2018 earnings of $0.51 per share on revenue of $1.3 billion. The consensus earnings estimate was $0.43 per share on revenue of $1.3 billion. Revenue grew 3.8% 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
$0.51
Earnings Whisper
-
Consensus Estimate
$0.43
Reported Revenue
$1.31 Bil
Revenue Estimate
$1.30 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Commercial Metals Company Reports Fourth Quarter Earnings From Continuing Operations Of $0.43 Per Share And Adjusted Earnings From Continuing Operations Of $0.51 Per Share

IRVING, Texas, Oct. 25, 2018 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal fourth quarter and year ended August 31, 2018.  For the three months ended August 31, 2018, earnings from continuing operations were $51.3 million, or $0.43 per diluted share, on net sales of $1.3 billion, compared to a net loss from continuing operations of $10.1 million, or $0.09 per diluted share, on net sales of $1.1 billion for the three months ended August 31, 2017.

Fourth quarter results include after-tax expenses of $8.6 million related to the announced acquisition of certain rebar assets from Gerdau S.A..  Excluding these expenses, adjusted earnings from continuing operations were $59.9 million, or $0.51 per diluted share, as detailed in the non-GAAP reconciliation on page 12, compared to adjusted earnings from continuing operations of $6.8 million, or $0.06 per diluted share, for the three months ended August 31, 2017.

For the fiscal year ended August 31, 2018, earnings from continuing operations were $135.2 million, or $1.14 per diluted share, on net sales of $4.6 billion. This compares to earnings from continuing operations of $50.2 million, or $0.43 per diluted share, on net sales of $3.8 billion for the fiscal year ended August 31, 2017. Adjusted earnings from continuing operations for the fiscal year ended August 31, 2018 were $176.1 million, or $1.49 per diluted share, which was a 163% increase compared to $67.0 million, or $0.57 per diluted share, in the prior year.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented, "I am proud of what our team has accomplished during fiscal 2018.  In addition to delivering our best financial results since the Great Recession, we also completed construction and commissioning of our second micro mill in Durant, OK, becoming the first producer of hot spooled rebar in the United States.  We also had record levels of shipments of steel products from our operations in the U.S. and Poland and achieved our lowest safety incident rate in the history of CMC."

The Company's liquidity position at August 31, 2018 remained strong with cash and cash equivalents of $622.5 million and availability under the Company's credit and accounts receivable sales facilities of $617.8 million.

On October 23, 2018, the board of directors of CMC declared a quarterly dividend of $0.12 per share of CMC common stock payable to stockholders of record on November 7, 2018.  The dividend will be paid on November 21, 2018.

Business Segments - Fiscal Fourth Quarter 2018 Review
During the quarter, the Company changed its business segment reporting metric from adjusted operating profit to adjusted EBITDA to evaluate the financial performance of its segments, as the Company believes this provides clear data of period-to-period trends and comparability to other industry participants.  The only adjustment made to EBITDA for the metric of adjusted EBITDA is the exclusion of non-cash impairments. In addition we have added a table, on page 11, which contains a new non-GAAP measure regarding core EBITDA from continuing operations, which excludes certain recurring non-cash charges and other non-recurring income and expense items.

Our Americas Recycling segment recorded adjusted EBITDA of $17.0 million for the fourth quarter of fiscal 2018, compared to adjusted EBITDA of $8.8 million for the fourth quarter of fiscal 2017. Adjusted EBITDA increased compared to the same period of the prior year primarily as a result of strong volumes and the rising price environment which took place during the past 12 months.

Our Americas Mills segment recorded adjusted EBITDA of $106.8 million for the fourth quarter of fiscal 2018, an increase of 142% compared to adjusted EBITDA of $44.2 million for the fourth quarter of fiscal 2017.  Demand remained strong supported by U.S. construction market strength.  In addition, the production ramp up at our Durant, OK facility continues to proceed as planned with the operation contributing positive adjusted EBITDA during the quarter.  As a result of the strong global demand for rebar, metal margins have increased by $68 per ton from the same period of the prior year.  Meaningful inflationary pressures on the cost of alloys and electrodes were muted by our continued focus on cost control as well as higher mill volumes resulting in an increase in manufacturing costs of approximately 3% as compared to 2017.

Our Americas Fabrication segment recorded an adjusted EBITDA loss of $24.6 million for the fourth quarter of fiscal 2018, compared to adjusted EBITDA of $1.2 million for the fourth quarter of fiscal 2017.  Average selling prices rose 9% compared to the fourth fiscal quarter of 2017, significantly outpaced by steel input costs, which increased by 32% causing continued margin pressure in this segment.   Rebar fabrication bidding activity remains strong and selling prices for contracted work during the quarter increased approximately 34% compared to the fourth quarter of 2017.

Our International Mill segment in Poland recorded adjusted EBITDA of $36.7 million for the fourth quarter of fiscal 2018, compared to adjusted EBITDA of $22.1 million for the fourth quarter of fiscal 2017. Long steel product demand continues to be very strong producing record levels of quarterly shipments and adjusted EBITDA during the fourth quarter of 2018.

Outlook
"Our outlook for the coming months remains very positive as we believe the current demand for construction steel will be sustained," said Ms. Smith.  "Our team delivered on many key strategic initiatives during 2018 producing record volumes during this period of strong demand and improving margins.  As we look forward to the strong economic environment continuing and the opportunities on the horizon, I am confident we will continue to deliver exceptional results for our stakeholders."

Conference Call
CMC invites you to listen to a live broadcast of its fourth quarter fiscal 2018 conference call today, Thursday, October 25, 2018, at 11:00 a.m. ETBarbara Smith, Chairman of the Board of Directors, President, and Chief Executive Officer, and Mary Lindsey, 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 market steel and metal products, related materials and services through a network of facilities that includes four electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. 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 effects of ongoing trade actions, the effects of continued pressure on the liquidity of our customers, potential synergies provided by our recent acquisitions, demand for our products, steel margins, the ability to operate our mills at full capacity, future supplies of raw materials and energy for our operations, share repurchases, legal proceedings, renewing the credit facilities of our Polish subsidiary, the reinvestment of 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, our new Oklahoma micro mill, estimated contractual obligations, the planned acquisition of substantially all of the U.S. rebar fabrication facilities and the steel mini-mills located in or around Rancho Cucamonga, California, Jacksonville, Florida, Sayreville, New Jersey and Knoxville, Tennessee currently owned by Gerdau S.A. and certain of its subsidiaries (collectively, the "Business") and the timing thereof, the ability to obtain regulatory approvals and meet other closing conditions for the planned acquisition of the Business, and our expectations or beliefs concerning future events.  These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements.

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 Part I, Item 1A, "Risk Factors" of our annual report on Form 10-K 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 fabrication contracts due to rising commodity prices; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; potential limitations in our or our customers' abilities to access credit and non-compliance by our customers with our contracts; 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; failure to retain key management and employees of the Business; issues or delays in the successful integration of the Business' operations with those of the Company, including the inability to substantially increase utilization of the Business' steel mini mills, and incurring or experiencing unanticipated costs and/or delays or difficulties; difficulties or delays in the successful transition of the Business to the information technology systems of the Company as well as risks associated with other integration or transition of the operations, systems and personnel of the Business; unfavorable reaction to the acquisition of the Business by customers, competitors, suppliers and employees; 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, including political uncertainties and military conflicts; 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; ability to realize the anticipated benefits of our investment in our new micro mill in Durant, Oklahoma; 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; impacts of the TCJA; and increased costs related to health care reform legislation.

COMMERCIAL METALS COMPANY

FINANCIAL & OPERATING STATISTICS (UNAUDITED)



Three Months Ended


Fiscal Year Ended

(in thousands, except per ton amounts)


8/31/2018


5/31/2018


2/28/2018


11/30/2017


8/31/2017


8/31/2018


8/31/2017

Americas Recycling















Net sales


$

361,363



364,098



320,627



319,341



317,300



1,365,429



1,011,500


Adjusted EBITDA


$

16,996



19,477



17,216



15,005



8,812



68,694



33,541


Short tons shipped















Ferrous


644



642



560



589



583



2,435



1,999


Nonferrous


69



65



63



66



70



263



234


Total short tons shipped


713



707



623



655



653



2,698



2,233


Average selling price (per short ton)















Ferrous


$

298



314



285



257


255


289



242


Nonferrous


$

2,155



2,252



2,345



2,208



2,134



2,238



2,019

















Americas Mills















Net sales


$

604,435



553,063



425,887



413,518


414,419


1,996,903



1,565,454


Adjusted EBITDA


$

106,830



89,590



50,219



55,166


44,180


301,805



224,183


Short tons shipped















     Rebar


482



503



405



405


445


1,795



1,693


     Merchant & Other


359



308



279



272


265


1,218



1,032


Total Short Tons Shipped


841



811



684



677


710


3,013



2,725


Average price (per short ton)















Total selling price


$

674



632


571


550


537


612



526


Cost of ferrous scrap utilized


$

326



329



288



256



257



303



243


Metal margin


$

348



303


283


294


280


309



283

















Americas Fabrication















Net sales


$

403,889



378,241



312,973



332,779



353,725



1,427,882



1,375,928


Adjusted EBITDA


$

(24,607)



(8,208)



(8,611)



2,032



1,243



(39,394)



27,259


Total short tons shipped


307



302



241



264



286



1,114



1,121


Total selling price (per short ton)


$

843



777



799



778



773



800



772

















International Mill















Net sales


$

253,058



201,737



211,765



220,478



200,239



887,038



637,273


Adjusted EBITDA


$

36,654



31,987



32,135



30,944



22,141



131,720



76,068


Short tons shipped















Rebar


145



79



95



140



129



459



463


Merchant & Other


289



241



251



260



266



1,041



916


Total short tons shipped


434



320



346



400



395



1,500



1,379


Average price (per short ton)















Total selling price


$

555



599



578



517



476



560



432


Cost of ferrous scrap utilized


$

305



329



324



296



269



314



240


Metal margin


$

250



270



254



221



207



246



192


 

COMMERCIAL METALS COMPANY

BUSINESS SEGMENTS (UNAUDITED)

(in thousands)


Three Months Ended


Fiscal Year Ended

Net sales


8/31/2018


5/31/2018


2/28/2018


11/30/2017


8/31/2017


8/31/2018


8/31/2017

Americas Recycling


$

361,363



$

364,098



$

320,627



$

319,341



$

317,300



$

1,365,429



$

1,011,500


Americas Mills


604,435



553,063



425,887



413,518



414,419



1,996,903



1,565,454


Americas Fabrication


403,889



378,241



312,973



332,779



353,725



1,427,882



1,375,928


International Mill


253,058



201,737



211,765



220,478



200,239



887,038



637,273


Corporate and Other


7,463



2,725



4,450



4,699



9,311



19,337



61,001


Eliminations


(321,770)



(295,380)



(221,434)



(214,282)



(210,864)



(1,052,866)



(807,087)


Total net sales


$

1,308,438



$

1,204,484



$

1,054,268



$

1,076,533



$

1,084,130



$

4,643,723



$

3,844,069

















Adjusted EBITDA from continuing operations















Americas Recycling


$

16,996



$

19,477



$

17,216



$

15,005



$

8,812



$

68,694



$

33,541


Americas Mills


106,830



89,590



50,219



55,166



44,180



301,805



224,183


Americas Fabrication


(24,607)



(8,208)



(8,611)



2,032



1,243



(39,394)



27,259


International Mill


36,654



31,987



32,135



30,944



22,141



131,720



76,068


Corporate and Other


(28,827)



(31,814)



(26,083)



(23,880)



(53,402)



(110,604)



(125,229)


 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)


Three Months Ended


Fiscal Year Ended

(in thousands, except share data)

8/31/2018


8/31/2017


8/31/2018


8/31/2017

Net sales

$

1,308,438



$

1,084,130



$

4,643,723



$

3,844,069


Costs and expenses:








Cost of goods sold

1,125,027



964,844



4,021,558



3,322,711


Selling, general and administrative expenses

108,975



105,518



401,452



387,354


Loss on debt extinguishment



22,672





22,672


Impairment of assets

840



1,182



14,372



1,730


Interest expense

15,654



5,939



40,957



44,151



1,250,496



1,100,155



4,478,339



3,778,618


Earnings from continuing operations before income taxes

57,942



(16,025)



165,384



65,451


Income taxes

6,682



(5,955)



30,147



15,276


Earnings from continuing operations

51,260



(10,070)



135,237



50,175










Earnings (loss) from discontinued operations before income taxes

(1,786)



(29,527)



3,235



(9,840)


Income taxes (benefit)

(2,086)



(10,057)



(34)



(5,997)


Earnings (loss) from discontinued operations

300



(19,470)



3,269



(3,843)










Net earnings

$

51,560



$

(29,540)



$

138,506



$

46,332










Basic earnings (loss) per share*








Earnings from continuing operations

$

0.44



$

(0.09)



$

1.16



$

0.43


Earnings (loss) from discontinued operations



(0.17)



0.03



(0.03)


Net earnings

$

0.44



$

(0.25)



$

1.19



$

0.40










Diluted earnings (loss) per share*








Earnings from continuing operations

$

0.43



$

(0.09)



$

1.14



$

0.43


Earnings (loss) from discontinued operations



(0.17)



0.03



(0.03)


Net earnings

$

0.44



$

(0.25)



$

1.17



$

0.39










Cash dividends per share

$

0.12



$

0.12



$

0.48



$

0.48


Average basic shares outstanding

117,119,557



115,892,403



116,822,583



115,654,466


Average diluted shares outstanding

118,407,316



115,892,403



118,145,848



117,364,408



* EPS is calculated independently for each component and may not sum to net earnings EPS due to rounding

 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

August 31,
 2018


August 31,
 2017

Assets




Current assets:




Cash and cash equivalents

$

622,473



$

252,595


Accounts receivable, net

749,484



561,411


Inventories

589,005



462,648


Other current assets

115,533



140,136


Assets of businesses held for sale and discontinued operations

710



297,110


Total current assets

2,077,205



1,713,900


Net property, plant and equipment

1,075,038



1,051,677


Goodwill

64,310



64,915


Other assets

111,751



144,639


Total assets

$

3,328,304



$

2,975,131


Liabilities and stockholders' equity




Current liabilities:




Accounts payable

$

261,258



$

226,456


Accrued expenses and other payables

259,022



274,972


Current maturities of long-term debt

19,746



19,182


Liabilities of businesses held for sale and discontinued operations

1,917



87,828


Total current liabilities

541,943



608,438


Deferred income taxes

37,834



49,160


Other long-term liabilities

116,325



111,023


Long-term debt

1,138,619



805,580


Total liabilities

1,834,721



1,574,201


Stockholders' equity

1,493,397



1,400,757


Stockholders' equity attributable to noncontrolling interests

186



173


Total equity

1,493,583



1,400,930


Total liabilities and stockholders' equity

$

3,328,304



$

2,975,131


 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)



Year Ended August 31,

(in thousands)


2018


2017

Cash flows from (used by) operating activities:





Net earnings


$

138,506



$

46,332


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





Depreciation and amortization


131,659



125,071


Share-based compensation


23,929



30,311


Loss on debt extinguishment




22,672


Write-down of inventory


1,407



21,529


Deferred income taxes and other long-term taxes


14,377



(14,184)


Amortization of interest rate swaps termination gain




(11,657)


Asset impairments


15,053



8,238


Net loss (gain) on sales of a subsidiary, assets and other


(1,322)



6,049


Provision for losses on receivables, net


2,510



6,049


Changes in operating assets and liabilities, net of acquisitions


(167,439)



(65,938)


Net cash flows from operating activities


158,680



174,472







Cash flows from (used by) investing activities:





Capital expenditures


(174,655)



(213,120)


Proceeds from the sale of discontinued operations and other


75,482



163,449


Proceeds from settlement of life insurance policies


27,375




Proceeds from the sale of property, plant and equipment


8,103



3,164


Acquisitions


(6,980)



(56,080)


Net cash flows used by investing activities


(70,675)



(102,587)







Cash flows from (used by) financing activities:





Proceeds from long-term debt transactions


350,000



475,454


Cash dividends


(56,076)



(55,514)


Repayments of long-term debt


(19,967)



(711,850)


Stock issued under incentive and purchase plans, net of forfeitures


(9,302)



(5,498)


Debt issuance costs


(5,254)



(4,449)


Increase (decrease) in documentary letters of credit, net


18



22


Contribution from noncontrolling interests


13



14


Debt extinguishment costs




(22,672)


Net cash flows from (used by) financing activities


259,432



(324,493)


Effect of exchange rate changes on cash


(703)



(1,213)


Increase (decrease) in cash and cash equivalents


346,734



(253,821)


Cash, restricted cash and cash equivalents at beginning of year


285,881



539,702


Cash, restricted cash and cash equivalents at end of year


$

632,615



$

285,881







Supplemental information:





Cash and cash equivalents


$

622,473



$

252,595


Restricted cash


$

10,142



$

33,286


Total cash, cash equivalents and restricted cash


$

632,615



$

285,881


COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

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

Core EBITDA from Continuing Operations is a non-GAAP financial measure. Core EBITDA from continuing operations is the sum of earnings (loss) from continuing operations before interest expense and income taxes (benefit). It also excludes recurring non-cash charges for depreciation and amortization, asset impairments, and equity compensation. Core EBITDA from continuing operations also excludes certain material acquisition and integration related costs, mill operational start-up costs, CMC Steel Oklahoma incentives, net debt restructuring and extinguishment gains and losses and severance expenses. Core EBITDA from continuing operations should not be considered an alternative to earnings (loss) from continuing operations or net earnings (loss), or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP. However, we believe that Core EBITDA from continuing operations provides relevant and useful information, which is often used by analysts, creditors and other interested parties in our industry as it allows: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our ongoing core performance; and (iii) the assessment of period-to-period performance trends. Additionally, Core EBITDA from continuing operations is the target benchmark for our annual and long-term cash incentive performance plans for management. Core EBITDA from continuing operations may be inconsistent with similar measures presented by other companies.

A reconciliation of earnings from continuing operations before income taxes to Core EBITDA from continuing operations is provided below:


Three Months Ended


Fiscal Year Ended

(in thousands)

8/31/2018


5/31/2018


2/28/2018


11/30/2017


8/31/2017


8/31/2018


8/31/2017

Earnings (loss) from continuing operations

$

51,260



$

42,325



$

9,781



$

31,871



$

(10,070)



$

135,237



$

50,175


Interest expense

15,654



11,511



7,181



6,611



5,939



40,957



44,151


Income taxes (benefit)

6,682



13,312



1,728



8,425



(5,955)



30,147



15,276


Depreciation and amortization

32,610



32,949



34,050



31,899



31,880



131,508



124,490


Asset impairments

840



935



12,136



461



1,182



14,372



1,730


Non-cash equity compensation

5,679



5,376



8,550



4,433



4,211



24,038



21,469


Acquisition and integration related costs

10,907



4,975



5,905



3,720





25,507




Mill operational start-up costs*



1,473



6,565



5,433





13,471




CMC Steel Oklahoma incentives



(3,000)









(3,000)




Loss on debt extinguishment









22,672





22,672


Severance









8,129





8,129


Core EBITDA from continuing operations

$

123,632



$

109,856



$

85,896



$

92,853



$

57,988



$

412,237



$

288,092



* Net of interest, taxes, depreciation and amortization, impairments, and non-cash equity compensation

Adjusted earnings from continuing operations is a non-GAAP financial measure that is equal to earnings (loss) from continuing operations before certain acquisition and integration related costs, mill operational start-up costs, CMC Steel Oklahoma incentives, asset impairments, debt restructuring and extinguishment gains and losses and severance expenses, including the estimated income tax effects thereof. Additionally, we adjust adjusted earnings from continuing operations for the effects of the TCJA as well as the tax benefit associated with an international reorganization. Adjusted earnings from continuing operations should not be considered as an alternative to earnings from continuing operations or any other performance measure derived in accordance with GAAP. However, we believe that adjusted earnings from continuing operations provides relevant and useful information to investors as it allows: (i) a supplemental measure of our ongoing core performance and (ii) the assessment of period-to-period performance trends. Management uses adjusted earnings from continuing operations to evaluate our financial performance. Adjusted earnings from continuing operations may be inconsistent with similar measures presented by other companies. Adjusted earnings from continuing operations per diluted share is defined as adjusted earnings from continuing operations on a diluted per share basis.

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


Three Months Ended


Fiscal Year Ended

(in thousands)

8/31/2018


5/31/2018


2/28/2018


11/30/2017


8/31/2017


8/31/2018


8/31/2017

Earnings (loss) from continuing operations

$

51,260



$

42,325



$

9,781



$

31,871



$

(10,070)



$

135,237



$

50,175


Impairment of structural steel assets





12,136







12,136




Acquisition and integration related costs

10,907



4,975



5,905



3,720





25,507




Mill operational start-up costs



6,456



8,651



2,909





18,016




CMC Steel Oklahoma incentives



(3,000)









(3,000)




Loss on debt extinguishment, net*









17,799





17,799


Severance









8,129





8,129


Total adjustments (pre-tax)

$

10,907



$

8,431



$

26,692



$

6,629



$

25,928



$

52,659



$

25,928
















Tax impact














TCJA impact

$



$



$

10,600



$



$



$

10,600



$


International reorganization





(9,200)







(9,200)




Related tax effects on adjustments

(2,290)



(1,771)



(6,855)



(2,320)



(9,075)



(13,236)



(9,075)


Total tax impact

(2,290)



(1,771)



(5,455)



(2,320)



(9,075)



(11,836)



(9,075)


Adjusted earnings from continuing operations

$

59,877



$

48,985



$

31,018



$

36,180



$

6,783



$

176,060



$

67,028
















Adjusted earnings from continuing operations per diluted share

$

0.51



$

0.41



$

0.26



$

0.31



$

0.06



$

1.49



$

0.57



* Net of $4.9 million gain related to acceleration of interest rate swaps, which was recorded as a reduction to interest expense

 

Cision View original content:http://www.prnewswire.com/news-releases/commercial-metals-company-reports-fourth-quarter-earnings-from-continuing-operations-of-0-43-per-share-and-adjusted-earnings-from-continuing-operations-of-0-51-per-share-300737492.html

SOURCE Commercial Metals Company