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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Schnitzer Steel Industries Inc | NASDAQ:SCHN | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 33.20 | 32.89 | 33.20 | 0 | 01:00:00 |
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x
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Quarterly Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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o
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Transition Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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For the Transition Period from _______ to_______
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Commission File Number 0-22496
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OREGON
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93-0341923
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
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299 SW Clay Street, Suite 350
Portland, Oregon
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97201
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(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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x
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Accelerated filer
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o
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Non-accelerated filer
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o
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Smaller reporting company
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o
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Emerging growth company
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o
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PAGE
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ITEM 1.
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FINANCIAL STATEMENTS (UNAUDITED)
|
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February 28, 2019
|
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August 31, 2018
|
||||
Assets
|
|
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|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
13,173
|
|
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$
|
4,723
|
|
Accounts receivable, net of allowance for doubtful accounts of $2,560 and $2,586
|
165,307
|
|
|
169,418
|
|
||
Inventories
|
198,565
|
|
|
205,877
|
|
||
Refundable income taxes
|
5,184
|
|
|
4,668
|
|
||
Prepaid expenses and other current assets
|
36,724
|
|
|
63,673
|
|
||
Total current assets
|
418,953
|
|
|
448,359
|
|
||
Property, plant and equipment, net of accumulated depreciation of $750,949 and $731,561
|
428,777
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|
|
415,711
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|
||
Investments in joint ventures
|
10,703
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11,532
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Goodwill
|
169,439
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168,065
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|
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Intangibles, net of accumulated amortization of $2,867 and $3,476
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4,117
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|
|
4,358
|
|
||
Deferred income taxes
|
29,548
|
|
|
30,333
|
|
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Other assets
|
25,715
|
|
|
26,459
|
|
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Total assets
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$
|
1,087,252
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|
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$
|
1,104,817
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Liabilities and Equity
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term borrowings
|
$
|
1,215
|
|
|
$
|
1,139
|
|
Accounts payable
|
95,730
|
|
|
128,495
|
|
||
Accrued payroll and related liabilities
|
20,303
|
|
|
46,410
|
|
||
Environmental liabilities
|
9,908
|
|
|
6,682
|
|
||
Other accrued liabilities
|
43,794
|
|
|
71,951
|
|
||
Total current liabilities
|
170,950
|
|
|
254,677
|
|
||
Deferred income taxes
|
16,137
|
|
|
11,742
|
|
||
Long-term debt, net of current maturities
|
161,866
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|
106,237
|
|
||
Environmental liabilities, net of current portion
|
43,306
|
|
|
47,150
|
|
||
Other long-term liabilities
|
14,146
|
|
|
14,901
|
|
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Total liabilities
|
406,405
|
|
|
434,707
|
|
||
Commitments and contingencies (Note 5)
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|
||||
Schnitzer Steel Industries, Inc. (“SSI”) shareholders’ equity:
|
|
|
|
||||
Preferred stock – 20,000 shares $1.00 par value authorized, none issued
|
—
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|
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—
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Class A common stock – 75,000 shares $1.00 par value authorized, 26,575 and 26,502 shares issued and outstanding
|
26,575
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26,502
|
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||
Class B common stock – 25,000 shares $1.00 par value authori
zed, 200 a
nd 200 shares issued and outstanding
|
200
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200
|
|
||
Additional paid-in capital
|
29,135
|
|
|
36,929
|
|
||
Retained earnings
|
658,424
|
|
|
639,684
|
|
||
Accumulated other comprehensive loss
|
(37,727
|
)
|
|
(37,237
|
)
|
||
Total SSI shareholders’ equity
|
676,607
|
|
|
666,078
|
|
||
Noncontrolling interests
|
4,240
|
|
|
4,032
|
|
||
Total equity
|
680,847
|
|
|
670,110
|
|
||
Total liabilities and equity
|
$
|
1,087,252
|
|
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$
|
1,104,817
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|
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Three Months Ended February 28,
|
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Six Months Ended February 28,
|
||||||||||||
|
2019
|
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2018
|
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2019
|
|
2018
|
||||||||
Revenues
|
$
|
473,565
|
|
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$
|
559,443
|
|
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$
|
1,037,585
|
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$
|
1,042,722
|
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Operating expense:
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
414,688
|
|
|
472,462
|
|
|
904,820
|
|
|
878,713
|
|
||||
Selling, general and administrative
|
39,489
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|
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53,638
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90,908
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|
|
104,681
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|
||||
(Income) from joint ventures
|
(184
|
)
|
|
(106
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)
|
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(669
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)
|
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(556
|
)
|
||||
Asset impairment charges (recoveries), net
|
—
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—
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63
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|
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(88
|
)
|
||||
Restructuring charges and other exit-related activities
|
536
|
|
|
91
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|
|
738
|
|
|
191
|
|
||||
Operating income
|
19,036
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|
|
33,358
|
|
|
41,725
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|
|
59,781
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|
||||
Interest expense
|
(2,067
|
)
|
|
(2,281
|
)
|
|
(3,973
|
)
|
|
(4,340
|
)
|
||||
Other income, net
|
321
|
|
|
101
|
|
|
344
|
|
|
950
|
|
||||
Income from continuing operations before income taxes
|
17,290
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31,178
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|
38,096
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56,391
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|
||||
Income tax (expense) benefit
|
(3,855
|
)
|
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10,577
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(7,971
|
)
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|
4,620
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|
||||
Income from continuing operations
|
13,435
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41,755
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30,125
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|
61,011
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|
||||
Income (loss) from discontinued operations, net of tax
|
(138
|
)
|
|
164
|
|
|
(210
|
)
|
|
129
|
|
||||
Net income
|
13,297
|
|
|
41,919
|
|
|
29,915
|
|
|
61,140
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|
||||
Net income attributable to noncontrolling interests
|
(405
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)
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(903
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)
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(835
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)
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(1,760
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)
|
||||
Net income attributable to SSI
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$
|
12,892
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$
|
41,016
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$
|
29,080
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|
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$
|
59,380
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|
||||||||
Net income per share attributable to SSI:
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|
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Basic:
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|||||||
Income per share from continuing operations attributable to SSI
|
$
|
0.47
|
|
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$
|
1.47
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|
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$
|
1.06
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|
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$
|
2.14
|
|
Income (loss) per share from discontinued operations attributable to SSI
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
—
|
|
||||
Net income per share attributable to SSI
|
$
|
0.47
|
|
|
$
|
1.48
|
|
|
$
|
1.05
|
|
|
$
|
2.14
|
|
Diluted:
|
|
|
|
|
|
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|
||||||||
Income per share from continuing operations attributable to SSI
|
$
|
0.46
|
|
|
$
|
1.42
|
|
|
$
|
1.04
|
|
|
$
|
2.06
|
|
Income (loss) per share from discontinued operations attributable to SSI
|
—
|
|
|
0.01
|
|
|
(0.01
|
)
|
|
—
|
|
||||
Net income per share attributable to SSI
(1)
|
$
|
0.46
|
|
|
$
|
1.42
|
|
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$
|
1.03
|
|
|
$
|
2.07
|
|
Weighted average number of common shares:
|
|
|
|
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|
|
|
||||||||
Basic
|
27,630
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|
|
27,797
|
|
|
27,568
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|
|
27,745
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|
||||
Diluted
|
28,114
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|
|
28,805
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|
|
28,239
|
|
|
28,737
|
|
||||
Dividends declared per common share
|
$
|
0.1875
|
|
|
$
|
0.1875
|
|
|
$
|
0.3750
|
|
|
$
|
0.3750
|
|
(1)
|
May not foot due to rounding.
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net income
|
$
|
13,297
|
|
|
$
|
41,919
|
|
|
$
|
29,915
|
|
|
$
|
61,140
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
632
|
|
|
117
|
|
|
(732
|
)
|
|
(1,592
|
)
|
||||
Pension obligations, net
|
40
|
|
|
(226
|
)
|
|
242
|
|
|
(144
|
)
|
||||
Total other comprehensive income (loss), net of tax
|
672
|
|
|
(109
|
)
|
|
(490
|
)
|
|
(1,736
|
)
|
||||
Comprehensive income
|
13,969
|
|
|
41,810
|
|
|
29,425
|
|
|
59,404
|
|
||||
Less comprehensive income attributable to noncontrolling interests
|
(405
|
)
|
|
(903
|
)
|
|
(835
|
)
|
|
(1,760
|
)
|
||||
Comprehensive income attributable to SSI
|
$
|
13,564
|
|
|
$
|
40,907
|
|
|
$
|
28,590
|
|
|
$
|
57,644
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total SSI
Shareholders’ Equity |
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||||||||
Class A
|
|
Class B
|
|
||||||||||||||||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||||||
Balance as of November 30, 2017
|
27,003
|
|
|
$
|
27,003
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
40,059
|
|
|
$
|
516,842
|
|
|
$
|
(36,920
|
)
|
|
$
|
547,184
|
|
|
$
|
4,433
|
|
|
$
|
551,617
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,016
|
|
|
—
|
|
|
41,016
|
|
|
903
|
|
|
41,919
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(109
|
)
|
|
(109
|
)
|
|
—
|
|
|
(109
|
)
|
||||||||
Reclassification of stranded tax effects of the Tax Cuts and Jobs Act
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(486
|
)
|
|
(486
|
)
|
||||||||
Share repurchases
|
(100
|
)
|
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
(3,501
|
)
|
|
—
|
|
|
—
|
|
|
(3,601
|
)
|
|
—
|
|
|
(3,601
|
)
|
||||||||
Issuance of restricted stock
|
3
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock withheld for taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
—
|
|
|
(37
|
)
|
|
—
|
|
|
(37
|
)
|
||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,091
|
|
|
—
|
|
|
—
|
|
|
3,091
|
|
|
—
|
|
|
3,091
|
|
||||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|
—
|
|
|
(183
|
)
|
|
(417
|
)
|
|
(600
|
)
|
||||||||
Cash dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,215
|
)
|
|
—
|
|
|
(5,215
|
)
|
|
—
|
|
|
(5,215
|
)
|
||||||||
Balance as of February 28, 2018
|
26,906
|
|
|
$
|
26,906
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
39,609
|
|
|
$
|
552,977
|
|
|
$
|
(37,029
|
)
|
|
$
|
582,663
|
|
|
$
|
4,433
|
|
|
$
|
587,096
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total SSI
Shareholders’ Equity |
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||||||||
Class A
|
|
Class B
|
|
||||||||||||||||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||||||
Balance as of November 30, 2018
|
26,826
|
|
|
$
|
26,826
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
32,592
|
|
|
$
|
650,695
|
|
|
$
|
(38,399
|
)
|
|
$
|
671,914
|
|
|
$
|
4,069
|
|
|
$
|
675,983
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,892
|
|
|
—
|
|
|
12,892
|
|
|
405
|
|
|
13,297
|
|
||||||||
Other comprehensive income, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
672
|
|
|
672
|
|
|
—
|
|
|
672
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(234
|
)
|
|
(234
|
)
|
||||||||
Share repurchases
|
(263
|
)
|
|
(263
|
)
|
|
—
|
|
|
—
|
|
|
(5,729
|
)
|
|
—
|
|
|
—
|
|
|
(5,992
|
)
|
|
—
|
|
|
(5,992
|
)
|
||||||||
Issuance of restricted stock
|
13
|
|
|
13
|
|
|
—
|
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock withheld for taxes
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
(119
|
)
|
|
—
|
|
|
—
|
|
|
(120
|
)
|
|
—
|
|
|
(120
|
)
|
||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,404
|
|
|
—
|
|
|
—
|
|
|
2,404
|
|
|
—
|
|
|
2,404
|
|
||||||||
Cash dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,163
|
)
|
|
—
|
|
|
(5,163
|
)
|
|
—
|
|
|
(5,163
|
)
|
||||||||
Balance as of February 28, 2019
|
26,575
|
|
|
$
|
26,575
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
29,135
|
|
|
$
|
658,424
|
|
|
$
|
(37,727
|
)
|
|
$
|
676,607
|
|
|
$
|
4,240
|
|
|
$
|
680,847
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total SSI
Shareholders’ Equity |
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||||||||
Class A
|
|
Class B
|
|
||||||||||||||||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||||||
Balance as of August 31, 2017
|
26,859
|
|
|
$
|
26,859
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
38,050
|
|
|
$
|
503,770
|
|
|
$
|
(35,293
|
)
|
|
$
|
533,586
|
|
|
$
|
3,907
|
|
|
$
|
537,493
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
59,380
|
|
|
—
|
|
|
59,380
|
|
|
1,760
|
|
|
61,140
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,736
|
)
|
|
(1,736
|
)
|
|
—
|
|
|
(1,736
|
)
|
||||||||
Reclassification of stranded tax effects of the Tax Cuts and Jobs Act
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
|
—
|
|
|
517
|
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(817
|
)
|
|
(817
|
)
|
||||||||
Share repurchases
|
(100
|
)
|
|
(100
|
)
|
|
—
|
|
|
—
|
|
|
(3,501
|
)
|
|
—
|
|
|
—
|
|
|
(3,601
|
)
|
|
—
|
|
|
(3,601
|
)
|
||||||||
Issuance of restricted stock
|
244
|
|
|
244
|
|
|
—
|
|
|
—
|
|
|
(244
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock withheld for taxes
|
(97
|
)
|
|
(97
|
)
|
|
—
|
|
|
—
|
|
|
(2,791
|
)
|
|
—
|
|
|
—
|
|
|
(2,888
|
)
|
|
—
|
|
|
(2,888
|
)
|
||||||||
Share-based compensation expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,095
|
|
|
—
|
|
|
—
|
|
|
8,095
|
|
|
—
|
|
|
8,095
|
|
||||||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(183
|
)
|
|
—
|
|
|
(183
|
)
|
|
(417
|
)
|
|
(600
|
)
|
||||||||
Cash dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,507
|
)
|
|
—
|
|
|
(10,507
|
)
|
|
—
|
|
|
(10,507
|
)
|
||||||||
Balance as of February 28, 2018
|
26,906
|
|
|
$
|
26,906
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
39,609
|
|
|
$
|
552,977
|
|
|
$
|
(37,029
|
)
|
|
$
|
582,663
|
|
|
$
|
4,433
|
|
|
$
|
587,096
|
|
|
Common Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Total SSI
Shareholders’ Equity |
|
Noncontrolling
Interests
|
|
Total
Equity
|
||||||||||||||||||||||||
Class A
|
|
Class B
|
|
||||||||||||||||||||||||||||||||||
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
||||||||||||||||||||||||||||||
Balance as of August 31, 2018
|
26,502
|
|
|
$
|
26,502
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
36,929
|
|
|
$
|
639,684
|
|
|
$
|
(37,237
|
)
|
|
$
|
666,078
|
|
|
$
|
4,032
|
|
|
$
|
670,110
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29,080
|
|
|
—
|
|
|
29,080
|
|
|
835
|
|
|
29,915
|
|
||||||||
Other comprehensive loss, net of tax
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(490
|
)
|
|
(490
|
)
|
|
—
|
|
|
(490
|
)
|
||||||||
Distributions to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(627
|
)
|
|
(627
|
)
|
||||||||
Share repurchases
|
(413
|
)
|
|
(413
|
)
|
|
—
|
|
|
—
|
|
|
(9,674
|
)
|
|
—
|
|
|
—
|
|
|
(10,087
|
)
|
|
—
|
|
|
(10,087
|
)
|
||||||||
Issuance of restricted stock
|
763
|
|
|
763
|
|
|
—
|
|
|
—
|
|
|
(763
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Restricted stock withheld for taxes
|
(277
|
)
|
|
(277
|
)
|
|
—
|
|
|
—
|
|
|
(7,165
|
)
|
|
—
|
|
|
—
|
|
|
(7,442
|
)
|
|
—
|
|
|
(7,442
|
)
|
||||||||
Share-based compensation expense
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,808
|
|
|
—
|
|
|
—
|
|
|
9,808
|
|
|
—
|
|
|
9,808
|
|
||||||||
Cash dividends
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,340
|
)
|
|
—
|
|
|
(10,340
|
)
|
|
—
|
|
|
(10,340
|
)
|
||||||||
Balance as of February 28, 2019
|
26,575
|
|
|
$
|
26,575
|
|
|
200
|
|
|
$
|
200
|
|
|
$
|
29,135
|
|
|
$
|
658,424
|
|
|
$
|
(37,727
|
)
|
|
$
|
676,607
|
|
|
$
|
4,240
|
|
|
$
|
680,847
|
|
|
Six Months Ended February 28,
|
||||||
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
29,915
|
|
|
$
|
61,140
|
|
Adjustments to reconcile net income to cash provided by (used in) operating activities:
|
|
|
|
||||
Depreciation and amortization
|
26,490
|
|
|
24,682
|
|
||
Asset impairment charges (recoveries), net
|
63
|
|
|
(88
|
)
|
||
Exit-related asset impairments
|
23
|
|
|
—
|
|
||
Inventory write-down
|
—
|
|
|
38
|
|
||
Share-based compensation expense
|
9,808
|
|
|
8,095
|
|
||
Deferred income taxes
|
4,888
|
|
|
(14,014
|
)
|
||
Undistributed equity in earnings of joint ventures
|
(669
|
)
|
|
(556
|
)
|
||
Loss on disposal of assets, net
|
24
|
|
|
252
|
|
||
Unrealized foreign exchange (gain) loss, net
|
70
|
|
|
(297
|
)
|
||
Bad debt expense (recoveries), net
|
(15
|
)
|
|
15
|
|
||
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
||||
Accounts receivable
|
(3,324
|
)
|
|
(62,049
|
)
|
||
Inventories
|
15,795
|
|
|
(49,432
|
)
|
||
Income taxes
|
(517
|
)
|
|
1,692
|
|
||
Prepaid expenses and other current assets
|
(2,503
|
)
|
|
2,947
|
|
||
Other long-term assets
|
430
|
|
|
(82
|
)
|
||
Accounts payable
|
(23,617
|
)
|
|
15,186
|
|
||
Accrued payroll and related liabilities
|
(26,091
|
)
|
|
(8,507
|
)
|
||
Other accrued liabilities
|
(8,229
|
)
|
|
4,534
|
|
||
Environmental liabilities
|
(784
|
)
|
|
3,620
|
|
||
Other long-term liabilities
|
78
|
|
|
1,673
|
|
||
Distributed equity in earnings of joint ventures
|
1,492
|
|
|
520
|
|
||
Net cash provided by (used in) operating activities
|
23,327
|
|
|
(10,631
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(41,295
|
)
|
|
(26,762
|
)
|
||
Acquisitions
|
(1,553
|
)
|
|
(2,300
|
)
|
||
Joint venture receipts, net
|
641
|
|
|
3
|
|
||
Proceeds from sale of assets
|
1,396
|
|
|
1,639
|
|
||
Net cash used in investing activities
|
(40,811
|
)
|
|
(27,420
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings from long-term debt
|
245,770
|
|
|
314,483
|
|
||
Repayment of long-term debt
|
(190,892
|
)
|
|
(249,916
|
)
|
||
Payment of debt issuance costs
|
(96
|
)
|
|
—
|
|
||
Repurchase of Class A common stock
|
(10,087
|
)
|
|
(3,601
|
)
|
||
Taxes paid related to net share settlement of share-based payment awards
|
(7,442
|
)
|
|
(2,888
|
)
|
||
Distributions to noncontrolling interests
|
(627
|
)
|
|
(817
|
)
|
||
Purchase of noncontrolling interest
|
—
|
|
|
(600
|
)
|
||
Dividends paid
|
(10,574
|
)
|
|
(10,633
|
)
|
||
Net cash provided by financing activities
|
26,052
|
|
|
46,028
|
|
||
Effect of exchange rate changes on cash
|
(118
|
)
|
|
(257
|
)
|
||
Net increase in cash and cash equivalents
|
8,450
|
|
|
7,720
|
|
||
Cash and cash equivalents as of beginning of period
|
4,723
|
|
|
7,287
|
|
||
Cash and cash equivalents as of end of period
|
$
|
13,173
|
|
|
$
|
15,007
|
|
|
Six Months Ended February 28,
|
||||||
|
2019
|
|
2018
|
||||
SUPPLEMENTAL DISCLOSURES:
|
|
|
|
||||
Cash paid during the year for:
|
|
|
|
||||
Interest
|
$
|
3,384
|
|
|
$
|
3,703
|
|
Income taxes paid, net
|
$
|
3,398
|
|
|
$
|
5,523
|
|
Schedule of noncash investing and financing transactions:
|
|
|
|
||||
Purchases of property, plant and equipment included in current liabilities
|
$
|
9,652
|
|
|
$
|
8,176
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
February 28, 2019
|
|
August 31, 2018
|
||||
Processed and unprocessed scrap metal
|
$
|
86,120
|
|
|
$
|
111,658
|
|
Semi-finished goods
|
16,948
|
|
|
15,551
|
|
||
Finished goods
|
52,886
|
|
|
39,809
|
|
||
Supplies
|
42,611
|
|
|
38,859
|
|
||
Inventories
|
$
|
198,565
|
|
|
$
|
205,877
|
|
|
Goodwill
|
||
August 31, 2018
|
$
|
168,065
|
|
Acquisition
|
1,575
|
|
|
Foreign currency translation adjustment
|
(201
|
)
|
|
February 28, 2019
|
$
|
169,439
|
|
Balance as of August 31, 2018
|
|
Liabilities Established (Released), Net
|
|
Payments and Other
|
|
Balance as of February 28, 2019
|
|
Short-Term
|
|
Long-Term
|
||||||||||||
$
|
53,832
|
|
|
$
|
1,487
|
|
|
$
|
(2,105
|
)
|
|
$
|
53,214
|
|
|
$
|
9,908
|
|
|
$
|
43,306
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended February 28, 2019
|
|
Three Months Ended February 28, 2018
|
||||||||||||||||||||
|
Foreign Currency Translation Adjustments
|
|
Pension Obligations, Net
|
|
Total
|
|
Foreign Currency Translation Adjustments
|
|
Pension Obligations, Net
|
|
Total
|
||||||||||||
Balances - December 1
(Beginning of period)
|
$
|
(35,493
|
)
|
|
$
|
(2,906
|
)
|
|
$
|
(38,399
|
)
|
|
$
|
(33,537
|
)
|
|
$
|
(3,383
|
)
|
|
$
|
(36,920
|
)
|
Other comprehensive income before reclassifications
|
632
|
|
|
—
|
|
|
632
|
|
|
117
|
|
|
—
|
|
|
117
|
|
||||||
Income tax (expense) benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other comprehensive income before reclassifications, net of tax
|
632
|
|
|
—
|
|
|
632
|
|
|
117
|
|
|
—
|
|
|
117
|
|
||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
52
|
|
|
52
|
|
|
—
|
|
|
77
|
|
|
77
|
|
||||||
Income tax benefit
|
—
|
|
|
(12
|
)
|
|
(12
|
)
|
|
—
|
|
|
(303
|
)
|
|
(303
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax
|
—
|
|
|
40
|
|
|
40
|
|
|
—
|
|
|
(226
|
)
|
|
(226
|
)
|
||||||
Net periodic other comprehensive income (loss)
|
632
|
|
|
40
|
|
|
672
|
|
|
117
|
|
|
(226
|
)
|
|
(109
|
)
|
||||||
Balances - February 28
(End of period)
|
$
|
(34,861
|
)
|
|
$
|
(2,866
|
)
|
|
$
|
(37,727
|
)
|
|
$
|
(33,420
|
)
|
|
$
|
(3,609
|
)
|
|
$
|
(37,029
|
)
|
|
Six Months Ended February 28, 2019
|
|
Six Months Ended February 28, 2018
|
||||||||||||||||||||
|
Foreign Currency Translation Adjustments
|
|
Pension Obligations, Net
|
|
Total
|
|
Foreign Currency Translation Adjustments
|
|
Pension Obligations, Net
|
|
Total
|
||||||||||||
Balances - September 1
(Beginning of period)
|
$
|
(34,129
|
)
|
|
$
|
(3,108
|
)
|
|
$
|
(37,237
|
)
|
|
$
|
(31,828
|
)
|
|
$
|
(3,465
|
)
|
|
$
|
(35,293
|
)
|
Other comprehensive income (loss) before reclassifications
|
(732
|
)
|
|
208
|
|
|
(524
|
)
|
|
(1,592
|
)
|
|
(185
|
)
|
|
(1,777
|
)
|
||||||
Income tax (expense) benefit
|
—
|
|
|
(46
|
)
|
|
(46
|
)
|
|
—
|
|
|
227
|
|
|
227
|
|
||||||
Other comprehensive income (loss) before reclassifications, net of tax
|
(732
|
)
|
|
162
|
|
|
(570
|
)
|
|
(1,592
|
)
|
|
42
|
|
|
(1,550
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive loss
|
—
|
|
|
104
|
|
|
104
|
|
|
—
|
|
|
140
|
|
|
140
|
|
||||||
Income tax benefit
|
—
|
|
|
(24
|
)
|
|
(24
|
)
|
|
—
|
|
|
(326
|
)
|
|
(326
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive loss, net of tax
|
—
|
|
|
80
|
|
|
80
|
|
|
—
|
|
|
(186
|
)
|
|
(186
|
)
|
||||||
Net periodic other comprehensive income (loss)
|
(732
|
)
|
|
242
|
|
|
(490
|
)
|
|
(1,592
|
)
|
|
(144
|
)
|
|
(1,736
|
)
|
||||||
Balances - February 28
(End of period)
|
$
|
(34,861
|
)
|
|
$
|
(2,866
|
)
|
|
$
|
(37,727
|
)
|
|
$
|
(33,420
|
)
|
|
$
|
(3,609
|
)
|
|
$
|
(37,029
|
)
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended February 28, 2019
|
||||||||||||||
|
AMR
|
|
CSS
|
|
Intersegment Revenues
|
|
Total
|
||||||||
Revenues by major product:
|
|
|
|
|
|
|
|
||||||||
Ferrous
|
$
|
257,488
|
|
|
$
|
7,120
|
|
|
$
|
(2,641
|
)
|
|
$
|
261,967
|
|
Nonferrous
|
99,484
|
|
|
9,115
|
|
|
(257
|
)
|
|
108,342
|
|
||||
Steel
|
—
|
|
|
74,025
|
|
|
—
|
|
|
74,025
|
|
||||
Retail and other
|
29,093
|
|
|
138
|
|
|
—
|
|
|
29,231
|
|
||||
Total revenues
|
$
|
386,065
|
|
|
$
|
90,398
|
|
|
$
|
(2,898
|
)
|
|
$
|
473,565
|
|
Revenues based on sales destination:
|
|
|
|
|
|
|
|
||||||||
Foreign
|
$
|
217,057
|
|
|
$
|
16,023
|
|
|
$
|
—
|
|
|
$
|
233,080
|
|
Domestic
|
169,008
|
|
|
74,375
|
|
|
(2,898
|
)
|
|
240,485
|
|
||||
Total revenues
|
$
|
386,065
|
|
|
$
|
90,398
|
|
|
$
|
(2,898
|
)
|
|
$
|
473,565
|
|
|
Six Months Ended February 28, 2019
|
||||||||||||||
|
AMR
|
|
CSS
|
|
Intersegment Revenues
|
|
Total
|
||||||||
Revenues by major product:
|
|
|
|
|
|
|
|
||||||||
Ferrous
|
$
|
556,300
|
|
|
$
|
26,863
|
|
|
$
|
(5,149
|
)
|
|
$
|
578,014
|
|
Nonferrous
|
203,665
|
|
|
18,146
|
|
|
(527
|
)
|
|
221,284
|
|
||||
Steel
|
—
|
|
|
175,362
|
|
|
—
|
|
|
175,362
|
|
||||
Retail and other
|
62,512
|
|
|
413
|
|
|
—
|
|
|
62,925
|
|
||||
Total revenues
|
$
|
822,477
|
|
|
$
|
220,784
|
|
|
$
|
(5,676
|
)
|
|
$
|
1,037,585
|
|
Revenues based on sales destination:
|
|
|
|
|
|
|
|
||||||||
Foreign
|
$
|
480,568
|
|
|
$
|
44,154
|
|
|
$
|
—
|
|
|
$
|
524,722
|
|
Domestic
|
341,909
|
|
|
176,630
|
|
|
(5,676
|
)
|
|
512,863
|
|
||||
Total revenues
|
$
|
822,477
|
|
|
$
|
220,784
|
|
|
$
|
(5,676
|
)
|
|
$
|
1,037,585
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Income from continuing operations
|
$
|
13,435
|
|
|
$
|
41,755
|
|
|
$
|
30,125
|
|
|
$
|
61,011
|
|
Net income attributable to noncontrolling interests
|
(405
|
)
|
|
(903
|
)
|
|
(835
|
)
|
|
(1,760
|
)
|
||||
Income from continuing operations attributable to SSI
|
13,030
|
|
|
40,852
|
|
|
29,290
|
|
|
59,251
|
|
||||
Income (loss) from discontinued operations, net of tax
|
(138
|
)
|
|
164
|
|
|
(210
|
)
|
|
129
|
|
||||
Net income attributable to SSI
|
$
|
12,892
|
|
|
$
|
41,016
|
|
|
$
|
29,080
|
|
|
$
|
59,380
|
|
Computation of shares:
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding, basic
|
27,630
|
|
|
27,797
|
|
|
27,568
|
|
|
27,745
|
|
||||
Incremental common shares attributable to dilutive performance share, RSU and DSU awards
|
484
|
|
|
1,008
|
|
|
671
|
|
|
992
|
|
||||
Weighted average common shares outstanding, diluted
|
28,114
|
|
|
28,805
|
|
|
28,239
|
|
|
28,737
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
AMR:
|
|
|
|
|
|
|
|
||||||||
Revenues
|
$
|
386,065
|
|
|
$
|
449,785
|
|
|
$
|
822,477
|
|
|
$
|
847,839
|
|
Less intersegment revenues
|
(2,898
|
)
|
|
(7,056
|
)
|
|
(5,676
|
)
|
|
(11,815
|
)
|
||||
AMR external customer revenues
|
383,167
|
|
|
442,729
|
|
|
816,801
|
|
|
836,024
|
|
||||
CSS:
|
|
|
|
|
|
|
|
||||||||
Revenues
|
90,398
|
|
|
116,714
|
|
|
220,784
|
|
|
206,698
|
|
||||
Total revenues
|
$
|
473,565
|
|
|
$
|
559,443
|
|
|
$
|
1,037,585
|
|
|
$
|
1,042,722
|
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
AMR
|
$
|
21,741
|
|
|
$
|
45,132
|
|
|
$
|
44,758
|
|
|
$
|
80,304
|
|
CSS
|
5,768
|
|
|
5,413
|
|
|
17,686
|
|
|
13,889
|
|
||||
Segment operating income
|
27,509
|
|
|
50,545
|
|
|
62,444
|
|
|
94,193
|
|
||||
Restructuring charges and other exit-related activities
|
(536
|
)
|
|
(91
|
)
|
|
(738
|
)
|
|
(191
|
)
|
||||
Corporate and eliminations
|
(7,937
|
)
|
|
(17,096
|
)
|
|
(19,981
|
)
|
|
(34,221
|
)
|
||||
Operating income
|
19,036
|
|
|
33,358
|
|
|
41,725
|
|
|
59,781
|
|
||||
Interest expense
|
(2,067
|
)
|
|
(2,281
|
)
|
|
(3,973
|
)
|
|
(4,340
|
)
|
||||
Other income, net
|
321
|
|
|
101
|
|
|
344
|
|
|
950
|
|
||||
Income from continuing operations before income taxes
|
$
|
17,290
|
|
|
$
|
31,178
|
|
|
$
|
38,096
|
|
|
$
|
56,391
|
|
|
February 28, 2019
|
|
August 31, 2018
|
||||
AMR
(1)
|
$
|
1,497,819
|
|
|
$
|
1,485,626
|
|
CSS
(1)
|
751,996
|
|
|
740,967
|
|
||
Total segment assets
|
2,249,815
|
|
|
2,226,593
|
|
||
Corporate and eliminations
(2)
|
(1,162,563
|
)
|
|
(1,121,776
|
)
|
||
Total assets
|
$
|
1,087,252
|
|
|
$
|
1,104,817
|
|
(1)
|
AMR total assets include
$3 million
and
$4 million
for an investment in a joint venture as of
February 28, 2019
and
August 31, 2018
, respectively. CSS total assets include
$8 million
for an investment in a joint venture as of
February 28, 2019
and
August 31, 2018
.
|
(2)
|
The substantial majority of Corporate and eliminations total assets consist of Corporate intercompany payables to the Company’s operating segments and intercompany eliminations.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
•
|
For the first
six
months of fiscal
2019
, net cash provided by operating activities of
$23 million
, compared to net cash used in operating activities of
$11 million
in the prior year comparable period;
|
•
|
Debt of
$163 million
as of
February 28, 2019
, compared to
$107 million
as of
August 31, 2018
;
|
•
|
Debt, net of cash, of
$150 million
as of
February 28, 2019
, compared to
$103 million
as of
August 31, 2018
(see the reconciliation of debt, net of cash, in Non-GAAP Financial Measures at the end of this Item 2); and
|
•
|
Share repurchases totaling
$10 million
in the first
six
months of fiscal
2019
, compared to
$4 million
in the prior year comparable period.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||||||||
($ in thousands)
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
$
|
386,065
|
|
|
$
|
449,785
|
|
|
(14
|
)%
|
|
$
|
822,477
|
|
|
$
|
847,839
|
|
|
(3
|
)%
|
Cascade Steel and Scrap
|
90,398
|
|
|
116,714
|
|
|
(23
|
)%
|
|
220,784
|
|
|
206,698
|
|
|
7
|
%
|
||||
Intercompany revenue eliminations
(1)
|
(2,898
|
)
|
|
(7,056
|
)
|
|
(59
|
)%
|
|
(5,676
|
)
|
|
(11,815
|
)
|
|
(52
|
)%
|
||||
Total revenues
|
473,565
|
|
|
559,443
|
|
|
(15
|
)%
|
|
1,037,585
|
|
|
1,042,722
|
|
|
—
|
%
|
||||
Cost of goods sold:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
336,281
|
|
|
371,899
|
|
|
(10
|
)%
|
|
715,017
|
|
|
703,848
|
|
|
2
|
%
|
||||
Cascade Steel and Scrap
|
81,463
|
|
|
107,273
|
|
|
(24
|
)%
|
|
195,798
|
|
|
185,853
|
|
|
5
|
%
|
||||
Intercompany cost of goods sold eliminations
(1)
|
(3,056
|
)
|
|
(6,710
|
)
|
|
(54
|
)%
|
|
(5,995
|
)
|
|
(10,988
|
)
|
|
(45
|
)%
|
||||
Total cost of goods sold
|
414,688
|
|
|
472,462
|
|
|
(12
|
)%
|
|
904,820
|
|
|
878,713
|
|
|
3
|
%
|
||||
Selling, general and administrative expense:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
28,008
|
|
|
32,546
|
|
|
(14
|
)%
|
|
62,774
|
|
|
63,479
|
|
|
(1
|
)%
|
||||
Cascade Steel and Scrap
|
3,386
|
|
|
4,342
|
|
|
(22
|
)%
|
|
7,834
|
|
|
7,808
|
|
|
—
|
%
|
||||
Corporate
(2)
|
8,095
|
|
|
16,750
|
|
|
(52
|
)%
|
|
20,300
|
|
|
33,394
|
|
|
(39
|
)%
|
||||
Total selling, general and administrative expense
|
39,489
|
|
|
53,638
|
|
|
(26
|
)%
|
|
90,908
|
|
|
104,681
|
|
|
(13
|
)%
|
||||
(Income) loss from joint ventures:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
35
|
|
|
208
|
|
|
(83
|
)%
|
|
(135
|
)
|
|
208
|
|
|
NM
|
|
||||
Cascade Steel and Scrap
|
(219
|
)
|
|
(314
|
)
|
|
(30
|
)%
|
|
(534
|
)
|
|
(764
|
)
|
|
(30
|
)%
|
||||
Total (income) from joint ventures
|
(184
|
)
|
|
(106
|
)
|
|
74
|
%
|
|
(669
|
)
|
|
(556
|
)
|
|
20
|
%
|
||||
Asset impairment charges (recoveries), net:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
—
|
|
|
—
|
|
|
NM
|
|
|
63
|
|
|
—
|
|
|
NM
|
|
||||
Cascade Steel and Scrap
|
—
|
|
|
—
|
|
|
NM
|
|
|
—
|
|
|
(88
|
)
|
|
NM
|
|
||||
Total asset impairment charges (recoveries), net
|
—
|
|
|
—
|
|
|
NM
|
|
|
63
|
|
|
(88
|
)
|
|
NM
|
|
||||
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Auto and Metals Recycling
|
21,741
|
|
|
45,132
|
|
|
(52
|
)%
|
|
44,758
|
|
|
80,304
|
|
|
(44
|
)%
|
||||
Cascade Steel and Scrap
|
5,768
|
|
|
5,413
|
|
|
7
|
%
|
|
17,686
|
|
|
13,889
|
|
|
27
|
%
|
||||
Segment operating income
|
27,509
|
|
|
50,545
|
|
|
(46
|
)%
|
|
62,444
|
|
|
94,193
|
|
|
(34
|
)%
|
||||
Restructuring charges and other exit-related activities
(3)
|
(536
|
)
|
|
(91
|
)
|
|
489
|
%
|
|
(738
|
)
|
|
(191
|
)
|
|
286
|
%
|
||||
Corporate expense
(2)
|
(8,095
|
)
|
|
(16,750
|
)
|
|
(52
|
)%
|
|
(20,300
|
)
|
|
(33,394
|
)
|
|
(39
|
)%
|
||||
Change in intercompany profit elimination
(4)
|
158
|
|
|
(346
|
)
|
|
NM
|
|
|
319
|
|
|
(827
|
)
|
|
NM
|
|
||||
Total operating income
|
$
|
19,036
|
|
|
$
|
33,358
|
|
|
(43
|
)%
|
|
$
|
41,725
|
|
|
$
|
59,781
|
|
|
(30
|
)%
|
(1)
|
AMR sells a small portion of its recycled ferrous metal to CSS at prices that approximate local market rates. These intercompany revenues and cost of goods sold are eliminated in consolidation.
|
(2)
|
Corporate expense consists primarily of unallocated expenses for management and certain administrative services that benefit both reportable segments.
|
(3)
|
Restructuring charges consist of expense for severance, contract termination and other restructuring costs that management does not include in its measurement of the performance of the reportable segments. Other exit-related activities consist primarily of asset impairments and accelerated depreciation, net of gains on exit-related disposals, related to site closures.
|
(4)
|
Intercompany profits are not recognized until the finished products are sold to third parties; therefore, intercompany profit is eliminated while the products remain in inventory.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||||||||
($ in thousands, except for prices)
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Ferrous revenues
|
$
|
257,488
|
|
|
$
|
307,687
|
|
|
(16
|
)%
|
|
$
|
556,300
|
|
|
$
|
562,670
|
|
|
(1
|
)%
|
Nonferrous revenues
|
99,484
|
|
|
110,388
|
|
|
(10
|
)%
|
|
203,665
|
|
|
220,731
|
|
|
(8
|
)%
|
||||
Retail and other revenues
|
29,093
|
|
|
31,710
|
|
|
(8
|
)%
|
|
62,512
|
|
|
64,438
|
|
|
(3
|
)%
|
||||
Total segment revenues
|
386,065
|
|
|
449,785
|
|
|
(14
|
)%
|
|
822,477
|
|
|
847,839
|
|
|
(3
|
)%
|
||||
Segment operating income
|
$
|
21,741
|
|
|
$
|
45,132
|
|
|
(52
|
)%
|
|
$
|
44,758
|
|
|
$
|
80,304
|
|
|
(44
|
)%
|
Average ferrous recycled metal sales prices ($/LT):
(1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic
|
$
|
286
|
|
|
$
|
278
|
|
|
3
|
%
|
|
$
|
288
|
|
|
$
|
269
|
|
|
7
|
%
|
Export
|
$
|
288
|
|
|
$
|
327
|
|
|
(12
|
)%
|
|
$
|
301
|
|
|
$
|
318
|
|
|
(5
|
)%
|
Average
|
$
|
287
|
|
|
$
|
314
|
|
|
(9
|
)%
|
|
$
|
297
|
|
|
$
|
304
|
|
|
(2
|
)%
|
Ferrous sales volume (LT, in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Domestic
|
343
|
|
|
239
|
|
|
43
|
%
|
|
683
|
|
|
477
|
|
|
43
|
%
|
||||
Export
|
515
|
|
|
657
|
|
|
(22
|
)%
|
|
1,094
|
|
|
1,216
|
|
|
(10
|
)%
|
||||
Total ferrous sales volume (LT, in thousands)
|
858
|
|
|
896
|
|
|
(4
|
)%
|
|
1,777
|
|
|
1,693
|
|
|
5
|
%
|
||||
Average nonferrous sales price ($/pound)
(1)(2)
|
$
|
0.58
|
|
|
$
|
0.72
|
|
|
(19
|
)%
|
|
$
|
0.59
|
|
|
$
|
0.72
|
|
|
(18
|
)%
|
Nonferrous sales volumes (pounds, in thousands)
(2)
|
141,307
|
|
|
129,549
|
|
|
9
|
%
|
|
294,176
|
|
|
258,686
|
|
|
14
|
%
|
||||
Cars purchased (in thousands)
(3)
|
89
|
|
|
102
|
|
|
(13
|
)%
|
|
183
|
|
|
210
|
|
|
(13
|
)%
|
||||
Number of auto parts stores at period end
|
51
|
|
|
53
|
|
|
(4
|
)%
|
|
51
|
|
|
53
|
|
|
(4
|
)%
|
||||
Outbound freight in cost of goods sold
|
$
|
26,047
|
|
|
$
|
29,501
|
|
|
(12
|
)%
|
|
$
|
60,628
|
|
|
$
|
55,246
|
|
|
10
|
%
|
(1)
|
Price information is shown after netting the cost of freight incurred to deliver the product to the customer.
|
(2)
|
Average sales price and volume information excludes platinum group metals (“PGMs”) in catalytic converters.
|
(3)
|
Cars purchased by auto parts stores only.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
Three Months Ended February 28,
|
|
Six Months Ended February 28,
|
||||||||||||||||||
($ in thousands, except for price)
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Steel revenues
(1)
|
$
|
74,025
|
|
|
$
|
81,542
|
|
|
(9
|
)%
|
|
$
|
175,362
|
|
|
$
|
161,988
|
|
|
8
|
%
|
Recycling revenues
(2)
|
16,373
|
|
|
35,172
|
|
|
(53
|
)%
|
|
45,422
|
|
|
44,710
|
|
|
2
|
%
|
||||
Total segment revenues
|
90,398
|
|
|
116,714
|
|
|
(23
|
)%
|
|
220,784
|
|
|
206,698
|
|
|
7
|
%
|
||||
Segment operating income
|
$
|
5,768
|
|
|
$
|
5,413
|
|
|
7
|
%
|
|
$
|
17,686
|
|
|
$
|
13,889
|
|
|
27
|
%
|
Finished steel average sales price ($/ST)
(3)
|
$
|
737
|
|
|
$
|
619
|
|
|
19
|
%
|
|
$
|
743
|
|
|
$
|
609
|
|
|
22
|
%
|
Finished steel products sold (ST, in thousands)
|
94
|
|
|
125
|
|
|
(25
|
)%
|
|
213
|
|
|
252
|
|
|
(15
|
)%
|
||||
Rolling mill utilization
(4)
|
76
|
%
|
|
83
|
%
|
|
(8
|
)%
|
|
81
|
%
|
|
89
|
%
|
|
(9
|
)%
|
(1)
|
Steel revenues include primarily sales of finished steel products, semi-finished goods (billets) and steel manufacturing scrap.
|
(2)
|
Recycling revenues include primarily sales of ferrous and nonferrous recycled scrap metal to export markets.
|
(3)
|
Price information is shown after netting the cost of freight incurred to deliver the product to the customer.
|
(4)
|
Rolling mill utilization is based on effective annual production capacity under current conditions of 580 thousand tons of finished steel products.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
February 28, 2019
|
|
August 31, 2018
|
||||
Short-term borrowings
|
$
|
1,215
|
|
|
$
|
1,139
|
|
Long-term debt, net of current maturities
|
161,866
|
|
|
106,237
|
|
||
Total debt
|
163,081
|
|
|
107,376
|
|
||
Less cash and cash equivalents
|
13,173
|
|
|
4,723
|
|
||
Total debt, net of cash
|
$
|
149,908
|
|
|
$
|
102,653
|
|
|
Six Months Ended February 28,
|
||||||
|
2019
|
|
2018
|
||||
Borrowings from long-term debt
|
$
|
245,770
|
|
|
$
|
314,483
|
|
Repayments of long-term debt
|
(190,892
|
)
|
|
(249,916
|
)
|
||
Net borrowings of debt
|
$
|
54,878
|
|
|
$
|
64,567
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
(1)
|
Income tax allocated to the aggregate adjustments reconciling reported and adjusted net income from continuing operations attributable to SSI and diluted earnings per share from continuing operations attributable to SSI is determined based on a tax provision calculated with and without the adjustments.
|
(2)
|
May not foot due to rounding.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 4.
|
CONTROLS AND PROCEDURES
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or Programs
|
|
Maximum Number
of Shares that may
yet be Purchased
under the Plans or
Programs
|
|||||
December 1 – December 31, 2018
|
—
|
|
|
—
|
|
|
—
|
|
|
1,136,313
|
|
|
January 1 – January 31, 2019
|
262,633
|
|
|
$
|
22.82
|
|
|
262,633
|
|
|
873,680
|
|
February 1 – February 28, 2019
|
—
|
|
|
—
|
|
|
—
|
|
|
873,680
|
|
|
Total second quarter 2019
|
262,633
|
|
|
|
|
262,633
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
ITEM 6.
|
EXHIBITS
|
Exhibit Number
|
|
Exhibit Description
|
|
|
|
10.1*
|
|
|
|
|
|
31.1
|
|
|
|
|
|
31.2
|
|
|
|
|
|
32.1
|
|
|
|
|
|
32.2
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
|
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
|
SCHNITZER STEEL INDUSTRIES, INC.
|
|
|
|
(Registrant)
|
|
|
|
|
|
Date:
|
April 4, 2019
|
By:
|
/s/ Tamara L. Lundgren
|
|
|
|
Tamara L. Lundgren
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Date:
|
April 4, 2019
|
By:
|
/s/ Richard D. Peach
|
|
|
|
Richard D. Peach
|
|
|
|
Senior Vice President, Chief Financial Officer and Chief of Corporate Operations
|
1 Year Schnitzer Steel Industries Chart |
1 Month Schnitzer Steel Industries Chart |
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