Quick10K

Commercial Metals

Market

Closing Price ($)	Shares Out (MM)	Market Cap ($MM)
$0.00	119	$1,817

Financial Filings

10-Q	2020-03-25	Quarter: 2020-02-29
10-Q	2020-01-07	Quarter: 2019-11-30
10-K	2019-10-23	Annual: 2019-08-31
10-Q	2019-06-27	Quarter: 2019-05-31
10-Q	2019-03-26	Quarter: 2019-02-28
10-Q	2019-01-08	Quarter: 2018-11-30
10-K	2018-10-25	Annual: 2018-08-31
10-Q	2018-06-27	Quarter: 2018-05-31
10-Q	2018-03-26	Quarter: 2018-02-28
10-Q	2018-01-08	Quarter: 2017-11-30
10-K	2017-10-26	Annual: 2017-08-31
10-Q	2017-06-28	Quarter: 2017-05-31
10-Q	2017-03-28	Quarter: 2017-02-28
10-Q	2017-01-09	Quarter: 2016-11-30
10-K	2016-10-31	Annual: 2016-08-31
10-Q	2016-06-29	Quarter: 2016-05-31
10-Q	2016-03-29	Quarter: 2016-02-29
10-Q	2016-01-08	Quarter: 2015-11-30
10-K	2015-10-30	Annual: 2015-08-31
10-Q	2015-06-29	Quarter: 2015-05-31
10-Q	2015-03-31	Quarter: 2015-02-28
10-Q	2015-01-09	Quarter: 2015-01-09
10-K	2014-10-30	Annual: 2014-08-31
10-Q	2014-07-01	Quarter: 2014-05-31
10-Q	2014-03-31	Quarter: 2014-02-28
10-Q	2014-01-09	Quarter: 2013-11-30
10-K	2013-10-28	Annual: 2013-08-31
10-Q	2013-04-01	Quarter: 2013-02-28
10-Q	2013-01-09	Quarter: 2012-11-30
10-K	2012-10-30	Annual: 2012-08-31
10-Q	2012-06-29	Quarter: 2012-05-31
10-Q	2012-04-06	Quarter: 2012-02-29
10-Q	2012-01-09	Quarter: 2011-11-30
10-K	2011-10-31	Annual: 2011-08-31
10-Q	2011-07-08	Quarter: 2011-05-31
10-Q	2011-04-08	Quarter: 2011-02-28
10-Q	2011-01-07	Quarter: 2010-11-30
10-K	2010-10-29	Annual: 2010-08-31
10-Q	2010-07-09	Quarter: 2010-05-31
10-Q	2010-04-08	Quarter: 2010-02-28
10-Q	2010-01-08	Quarter: 2009-11-30

Current Reports

8-K	2020-03-19	Earnings, Exhibits
8-K	2020-03-18	Other Events, Exhibits
8-K	2020-03-01	Leave Agreement, Officers, Exhibits
8-K	2020-02-28	Officers, Exhibits
8-K	2020-02-04	Officers
8-K	2020-01-08	Officers, Shareholder Vote
8-K	2020-01-06	Earnings, Exhibits
8-K	2020-01-02	Other Events, Exhibits
8-K	2019-10-23
8-K	2019-10-22
8-K	2019-10-22	Officers
8-K	2019-09-20	Amend Bylaw, Exhibits
8-K	2019-08-13	Officers
8-K	2019-07-02	Officers, Exhibits
8-K	2019-06-20	Earnings, Exhibits
8-K	2019-06-19	Other Events, Exhibits
8-K	2019-03-21	Earnings, Exhibits
8-K	2019-03-20	Other Events, Exhibits
8-K	2019-01-09	Shareholder Vote
8-K	2019-01-07	Earnings, Exhibits
8-K	2019-01-02	Other Events, Exhibits
8-K	2018-12-13	Regulation FD, Exhibits
8-K	2018-11-05	M&A, Off-BS Arrangement, Regulation FD, Exhibits
8-K	2018-10-25	Earnings, Exhibits
8-K	2018-10-23	Other Events, Exhibits
8-K	2018-08-31	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-06-21	Earnings, Exhibits
8-K	2018-06-20	Other Events, Exhibits
8-K	2018-05-03	Enter Agreement, Off-BS Arrangement, Other Events, Exhibits
8-K	2018-04-19	Enter Agreement, Other Events, Exhibits
8-K	2018-04-19	Regulation FD, Other Events, Exhibits
8-K	2018-04-01	Officers, Exhibits
8-K	2018-03-22	Earnings, Exhibits
8-K	2018-03-21	Other Events, Exhibits
8-K	2018-02-21	Enter Agreement, Off-BS Arrangement, Exhibits
8-K	2018-01-09	Officers, Shareholder Vote
8-K	2018-01-03	Earnings, Exhibits
8-K	2018-01-02	Other Events, Exhibits
8-K	2017-12-29	Enter Agreement, Off-BS Arrangement, Regulation FD, Other Events, Exhibits

Commercial Metals Earnings 2020-02-29

CMC 10Q Quarterly Report

Balance Sheet	Income Statement	Cash Flow

Comparables ($MM TTM)
Ticker	M Cap	Assets	Liab	Rev	G Profit	Net Inc	EBITDA	EV	G Margin	EV/EBITDA	ROA
X	2,621	11,291	6,979	14,464	1,689	1,005	1,386	4,284	12%	3.1	9%
CRS	2,244	3,188	1,668	2,380	445	167	364	2,767	19%	7.6	5%
WOR	2,219	2,511	1,562	3,760	480	163	340	2,880	13%	8.5	7%
GGB	2,145	51,281	25,342	0	0	0	0	2,139			0%
CMC	1,817	3,767	2,203	5,594	734	164	442	3,002	13%	6.8	4%
ROCK	1,272	907	277	1,011	231	59	102	1,190	23%	11.7	6%
MTL	833	317,625	550,820	0	0	0	0	833			0%
AKS	722	4,687	4,211	6,791	0	206	581	2,626	0%	4.5	4%
SXC	574	2,082	1,360	1,532	40	38	148	1,324	3%	9.0	2%
SXCP	531	1,634	1,038	908	32	52	224	1,348	4%	6.0	3%

cmc-20200229

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________

FORM 10-Q

___________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended February 29, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 1-4304

___________________________________

COMMERCIAL METALS COMPANY

(Exact Name of Registrant as Specified in Its Charter)

___________________________________


Delaware			75-0725338
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification Number)

6565 N. MacArthur Blvd.

Irving, Texas 75039

(Address of Principal Executive Offices) (Zip Code)

(214) 689-4300

(Registrant's Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common Stock, $0.01 par value

CMC

New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 ("Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of March 24, 2020, 119,061,889 shares of the registrant's common stock, par value $0.01 per share, were outstanding.

COMMERCIAL METALS COMPANY AND SUBSIDIARIES

TABLE OF CONTENTS



PART I — FINANCIAL INFORMATION			3

Item 1. Financial Statements (Unaudited)			3
Condensed Consolidated Statements of Earnings - Three and six months ended February 29, 2020 and February 28, 2019			3
Condensed Consolidated Statements of Comprehensive Income - Three and six months ended February 29, 2020 and February 28, 2019			4
Condensed Consolidated Balance Sheets - February 29 , 20 20 and August 31, 2019			5
Condensed Consolidated Statements of Cash Flows - Six months ended February 29, 2020 and February 28, 2019			6
Condensed Consolidated Statements of Stockholders' Equity - Three and s ix months ended February 29, 2020 and February 28, 2019			7
Notes to Condensed Consolidated Financial Statements			9
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			22
Item 3. Quantitative and Qualitative Disclosures About Market Risk			30
Item 4. Controls and Procedures			30

PART II — OTHER INFORMATION			31

Item 1. Legal Proceedings			31
Item 1A. Risk Factors			31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			32
Item 3. Defaults Upon Senior Securities			32
Item 4. Mine Safety Disclosures			32
Item 5. Other Information			32
Item 6. Exhibits			33
Signature			34

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
	Three Months Ended						Six Months Ended
(in thousands, except share data)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net sales	$	1,340,963	$	1,402,783	$	2,725,671	$	2,680,125
Costs and expenses:
Cost of goods sold	1,123,096		1,252,493		2,269,610		2,370,926
Selling, general and administrative expenses	115,538		98,726		227,067		215,943
Interest expense	15,888		18,495		32,466		35,158
	1,254,522		1,369,714		2,529,143		2,622,027

Earnings from continuing operations before income taxes	86,441		33,069		196,528		58,098
Income taxes	22,845		18,141		50,177		23,750
Earnings from continuing operations	63,596		14,928		146,351		34,348

Earnings (loss) from discontinued operations before income taxes	301		(1,075)		1,196		(618)
Income taxes	99		3		401		138
Earnings (loss) from discontinued operations	202		(1,078)		795		(756)

Net earnings	$	63,798	$	13,850	$	147,146	$	33,592

Basic earnings per share*
Earnings from continuing operations	$	0.53	$	0.13	$	1.23	$	0.29
Earnings (loss) from discontinued operations	—		(0.01)		0.01		(0.01)
Net earnings	$	0.54	$	0.12	$	1.24	$	0.29

Diluted earnings per share*
Earnings from continuing operations	$	0.53	$	0.13	$	1.22	$	0.29
Earnings (loss) from discontinued operations	—		(0.01)		0.01		(0.01)
Net earnings	$	0.53	$	0.12	$	1.22	$	0.28

Average basic shares outstanding	118,919,455		117,854,335		118,644,823		117,677,422
Average diluted shares outstanding	120,407,256		118,942,758		120,303,259		118,996,427

See notes to condensed consolidated financial statements.

_________________

*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 STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
	Three Months Ended						Six Months Ended
(in thousands)	February 29, 2020		February 28, 2019		February 29, 2020		February 28, 2019
Net earnings	$	63,798	$	13,850	$	147,146	$	33,592
Other comprehensive income, net of income taxes:
Foreign currency translation adjustment	(1,066)		514		5,858		(9,143)
Reclassification for translation gain (loss) realized upon liquidation of investment in foreign entity	(2)		936		(2)		837
Foreign currency translation adjustment	(1,068)		1,450		5,856		(8,306)
Net unrealized loss on derivatives:
Unrealized holding loss	(3,646)		(86)		(2,932)		(121)
Reclassification for loss included in net earnings	(83)		(42)		(172)		(84)
Net unrealized loss on derivatives	(3,729)		(128)		(3,104)		(205)
Defined benefit obligation:
Amortization of prior services	(8)		(8)		(16)		(15)
Reclassification for settlement losses	—		—		—		1,316
Defined benefit obligation	(8)		(8)		(16)		1,301
Other comprehensive income (loss)	(4,805)		1,314		2,736		(7,210)
Comprehensive income	$	58,993	$	15,164	$	149,882	$	26,382

See notes to condensed consolidated financial statements.


COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share data)	February 29, 2020		August 31, 2019
Assets
Current assets:
Cash and cash equivalents	$	232,442	$	192,461
Accounts receivable (less allowance for doubtful accounts of $8,388 and $8,403)	961,694		1,016,088
Inventories, net	714,842		692,368
Other current assets	176,000		179,088
Total current assets	2,084,978		2,080,005
Property, plant and equipment, net	1,522,342		1,500,971
Goodwill	64,172		64,138
Other noncurrent assets	236,446		113,657
Total assets	$	3,907,938	$	3,758,771
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$	275,491	$	288,005
Accrued expenses and other payables	329,920		353,786
Acquired unfavorable contract backlog	21,008		35,360
Current maturities of long-term debt and short-term borrowings	22,715		17,439
Total current liabilities	649,134		694,590
Deferred income taxes	123,726		79,290
Other noncurrent liabilities	232,450		133,620
Long-term debt	1,144,573		1,227,214
Total liabilities	2,149,883		2,134,714
Commitments and contingencies (Note 13)
Stockholders' equity:
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 119,061,889 and 117,924,938 shares	1,290		1,290
Additional paid-in capital	351,481		358,668
Accumulated other comprehensive loss	(121,390)		(124,126)
Retained earnings	1,704,045		1,585,379
Less treasury stock 9,998,775 and 11,135,726 shares at cost	(177,583)		(197,350)
Stockholders' equity	1,757,843		1,623,861
Stockholders' equity attributable to noncontrolling interests	212		196
Total stockholders' equity	1,758,055		1,624,057
Total liabilities and stockholders' equity	$	3,907,938	$	3,758,771

See notes to condensed consolidated financial statements.


COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Six Months Ended
(in thousands)	February 29, 2020		February 28, 2019
Cash flows from (used by) operating activities:
Net earnings	$	147,146	$	33,592
Adjustments to reconcile net earnings to cash flows from (used by) operating activities:
Depreciation and amortization	82,338		76,430
Deferred income taxes and other long-term taxes	42,142		11,705
Stock-based compensation	15,805		10,007
Amortization of acquired unfavorable contract backlog	(14,328)		(34,808)
Net gain on disposals of subsidiaries, assets and other	(5,585)		(1,202)
Other	1,571		(281)
Changes in operating assets and liabilities	(15,673)		(80,809)
Beneficial interest in securitized accounts receivable	—		(367,521)
Net cash flows from (used by) operating activities	253,416		(352,887)

Cash flows from (used by) investing activities:
Capital expenditures	(96,592)		(67,497)
Proceeds from the sale of property, plant and equipment	14,004		2,042
Acquisitions, net of cash acquired	(9,850)		(700,982)
Proceeds from insurance, sale of discontinued operations and other	974		5,798


Beneficial interest in securitized accounts receivable	—		367,521
Net cash flows used by investing activities:	(91,464)		(393,118)

Cash flows from (used by) financing activities:
Proceeds from issuance of long-term debt	11,299		180,000
Repayments of long-term debt	(106,880)		(14,605)
Proceeds from accounts receivable programs	85,686		140,070
Repayments under accounts receivable programs	(81,314)		(92,664)
Dividends	(28,480)		(28,181)
Stock issued under incentive and purchase plans, net of forfeitures	(2,463)		(2,856)

Contribution from noncontrolling interests	16		10
Net cash flows from (used by) financing activities	(122,136)		181,774
Effect of exchange rate changes on cash	337		(221)
Increase (decrease) in cash, restricted cash and cash equivalents	40,153		(564,452)
Cash, restricted cash and cash equivalents at beginning of period	193,729		632,615
Cash, restricted cash and cash equivalents at end of period	$	233,882	$	68,163

See notes to condensed consolidated financial statements.


Supplemental information:	Six Months Ended
(in thousands)	February 29, 2020		February 28, 2019
Cash paid for income taxes	$	27,759	$	1,771
Cash paid for interest	29,484		31,518

Noncash activities:
Liabilities related to additions of property, plant and equipment	29,176		26,186

Cash and cash equivalents	$	232,442	$	66,742
Restricted cash	1,440		1,421
Total cash, restricted cash and cash equivalents	$	233,882	$	68,163


COMMERCIAL METALS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
	Three Months Ended February 29, 2020
	Common Stock					Additional		Accumulated Other			Treasury Stock						Non-
(in thousands, except share data)	Number of Shares	Amount		Paid-In Capital		Comprehensive Loss		Retained Earnings		Number of Shares	Amount		controlling Interests		Total
Balance, November 30, 2019	129,060,664	$	1,290	$	347,192	$	(116,585)	$	1,654,489	(10,410,799)	$	(184,885)	$	196	$	1,701,697
Net earnings								63,798							63,798
Other comprehensive loss						(4,805)									(4,805)
Dividends ($0.12 per share)								(14,242)							(14,242)
Issuance of stock under incentive and purchase plans, net of forfeitures				(1,948)						412,024	7,302				5,354
Stock-based compensation				6,237											6,237
Contribution of noncontrolling interests													16		16
Balance, February 29, 2020	129,060,664	$	1,290	$	351,481	$	(121,390)	$	1,704,045	(9,998,775)	$	(177,583)	$	212	$	1,758,055

	Six Months Ended February 29, 2020
	Common Stock					Additional		Accumulated Other			Treasury Stock						Non-
(in thousands, except share data)	Number of Shares	Amount		Paid-In Capital		Comprehensive Loss		Retained Earnings		Number of Shares	Amount		controlling Interests		Total
Balance, September 1, 2019	129,060,664	$	1,290	$	358,668	$	(124,126)	$	1,585,379	(11,135,726)	$	(197,350)	$	196	$	1,624,057
Net earnings								147,146							147,146
Other comprehensive income						2,736									2,736
Dividends ($0.12 per share)								(28,480)							(28,480)
Issuance of stock under incentive and purchase plans, net of forfeitures				(22,230)						1,136,951	19,767				(2,463)
Stock-based compensation				15,043											15,043
Contribution of noncontrolling interests													16		16

Balance, February 29, 2020	129,060,664	$	1,290	$	351,481	$	(121,390)	$	1,704,045	(9,998,775)	$	(177,583)	$	212	$	1,758,055


	Three Months Ended February 28, 2019
	Common Stock					Additional		Accumulated Other			Treasury Stock						Non-
(in thousands, except share data)	Number of Shares	Amount		Paid-In Capital		Comprehensive Loss		Retained Earnings		Number of Shares	Amount		controlling Interests		Total
Balance, November 30, 2018	129,060,664	$	1,290	$	342,893	$	(102,201)	$	1,449,374	(11,426,463)	$	(202,515)	$	186	$	1,489,027
Net earnings								13,850							13,850
Other comprehensive income						1,314									1,314
Dividends ($0.12 per share)								(14,065)							(14,065)
Issuance of stock under incentive and purchase plans, net of forfeitures				(1,733)						286,869	5,097				3,364
Stock-based compensation				4,996											4,996
Contribution of noncontrolling interest													10		10
Balance, February 28, 2019	129,060,664	$	1,290	$	346,156	$	(100,887)	$	1,449,159	(11,139,594)	$	(197,418)	$	196	$	1,498,496

	Six Months Ended February 28, 2019
	Common Stock					Additional		Accumulated Other			Treasury Stock						Non-
(in thousands, except share data)	Number of Shares	Amount		Paid-In Capital		Comprehensive Loss		Retained Earnings		Number of Shares	Amount		controlling Interests		Total
Balance, September 1, 2018	129,060,664	$

EX-31.1	cmc-2292020xex311.htm
EX-31.2	cmc-2292020xex312.htm
EX-32.1	cmc-2292020xex321.htm
EX-32.2	cmc-2292020xex322.htm