Price | 29.38 | EPS | 4 | |
Shares | 222 | P/E | 8 | |
MCap | 6,528 | P/FCF | 7 | |
Net Debt | 1,348 | EBIT | 1,114 | |
TEV | 7,877 | TEV/EBIT | 7 | TTM 2019-09-30, in MM, except price, ratios |
10-Q | 2020-09-30 | Filed 2020-11-09 |
10-Q | 2020-06-30 | Filed 2020-08-10 |
10-Q | 2020-03-31 | Filed 2020-05-11 |
10-K | 2019-12-31 | Filed 2020-02-27 |
10-Q | 2019-09-30 | Filed 2019-10-31 |
10-Q | 2019-06-30 | Filed 2019-08-09 |
10-Q | 2019-03-31 | Filed 2019-05-10 |
10-K | 2018-12-31 | Filed 2019-02-27 |
10-Q | 2018-09-30 | Filed 2018-11-07 |
10-Q | 2018-06-30 | Filed 2018-08-09 |
10-Q | 2018-03-31 | Filed 2018-05-09 |
10-K | 2017-12-31 | Filed 2018-02-27 |
10-Q | 2017-09-30 | Filed 2017-11-09 |
10-Q | 2017-06-30 | Filed 2017-08-07 |
10-Q | 2017-03-31 | Filed 2017-05-08 |
10-K | 2016-12-31 | Filed 2017-02-28 |
10-Q | 2016-09-30 | Filed 2016-11-09 |
10-Q | 2016-06-30 | Filed 2016-08-05 |
10-Q | 2016-03-31 | Filed 2016-05-06 |
10-K | 2015-12-31 | Filed 2016-02-26 |
10-Q | 2015-09-30 | Filed 2015-11-06 |
10-Q | 2015-06-30 | Filed 2015-08-10 |
10-Q | 2015-03-31 | Filed 2015-05-11 |
10-K | 2014-12-31 | Filed 2015-03-02 |
10-Q | 2014-09-30 | Filed 2014-11-10 |
10-Q | 2014-06-30 | Filed 2014-08-08 |
10-Q | 2014-03-31 | Filed 2014-05-08 |
10-K | 2013-12-31 | Filed 2014-03-03 |
10-Q | 2013-09-30 | Filed 2013-11-08 |
10-Q | 2013-06-30 | Filed 2013-08-07 |
10-Q | 2013-03-31 | Filed 2013-05-09 |
10-K | 2012-12-31 | Filed 2013-02-27 |
10-Q | 2012-09-30 | Filed 2012-11-07 |
10-Q | 2012-06-30 | Filed 2012-08-07 |
10-Q | 2012-03-31 | Filed 2012-05-09 |
10-K | 2011-12-31 | Filed 2012-02-27 |
10-Q | 2011-09-30 | Filed 2011-11-08 |
10-Q | 2011-06-30 | Filed 2011-08-05 |
10-Q | 2011-03-31 | Filed 2011-05-06 |
10-K | 2010-12-31 | Filed 2011-02-23 |
10-Q | 2010-09-30 | Filed 2010-11-05 |
10-Q | 2010-06-30 | Filed 2010-08-04 |
10-Q | 2010-03-31 | Filed 2010-05-07 |
10-K | 2009-12-31 | Filed 2010-02-22 |
8-K | 2020-11-19 | |
8-K | 2020-10-19 | |
8-K | 2020-10-07 | |
8-K | 2020-09-17 | |
8-K | 2020-08-21 | |
8-K | 2020-08-03 | |
8-K | 2020-07-20 | |
8-K | 2020-06-29 | |
8-K | 2020-06-18 | |
8-K | 2020-06-03 | |
8-K | 2020-05-22 | |
8-K | 2020-05-08 | |
8-K | 2020-04-20 | |
8-K | 2020-03-18 | |
8-K | 2020-03-02 | |
8-K | 2020-02-20 | |
8-K | 2020-01-22 | |
8-K | 2019-12-30 | |
8-K | 2019-12-16 | |
8-K | 2019-12-09 | |
8-K | 2019-12-03 | |
8-K | 2019-11-22 | |
8-K | 2019-10-16 | |
8-K | 2019-09-17 | |
8-K | 2019-08-26 | |
8-K | 2019-07-22 | |
8-K | 2019-07-22 | |
8-K | 2019-06-17 | |
8-K | 2019-05-17 | |
8-K | 2019-05-16 | |
8-K | 2019-04-22 | |
8-K | 2019-03-18 | |
8-K | 2019-03-01 | |
8-K | 2019-02-14 | |
8-K | 2019-02-01 | |
8-K | 2019-01-22 | |
8-K | 2019-01-14 | |
8-K | 2018-12-18 | |
8-K | 2018-11-26 | |
8-K | 2018-11-19 | |
8-K | 2018-10-17 | |
8-K | 2018-10-17 | |
8-K | 2018-09-18 | |
8-K | 2018-09-17 | |
8-K | 2018-09-04 | |
8-K | 2018-08-20 | |
8-K | 2018-07-23 | |
8-K | 2018-06-29 | |
8-K | 2018-06-28 | |
8-K | 2018-06-26 | |
8-K | 2018-06-15 | |
8-K | 2018-06-12 | |
8-K | 2018-05-17 | |
8-K | 2018-05-14 | |
8-K | 2018-04-18 | |
8-K | 2018-03-16 | |
8-K | 2018-02-20 | |
8-K | 2018-01-22 |
Note 1. Description of The Business and Significant Accounting Policies |
Note 2. Acquisition |
Note 3. Earnings per Share |
Note 4. Inventories |
Note 5. Debt |
Note 6. Changes in Equity |
Note 7. Derivative Financial Instruments |
Note 8. Fair Value Measurements |
Note 9. Commitments and Contingencies |
Note 10. Segment Information |
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations |
Item 3. Quantitative and Qualitative Disclosures About Market Risk |
Item 4. Controls and Procedures |
Part II Other Information |
Item 1. Legal Proceedings |
Item 1A. Risk Factors |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Item 3. Defaults Upon Senior Securities |
Item 4. Mine Safety Disclosures |
Item 5. Other Information |
Item 6. Exhibits |
EX-31.1 | stld-20200930xex31d1.htm |
EX-31.2 | stld-20200930xex31d2.htm |
EX-32.1 | stld-20200930xex32d1.htm |
EX-32.2 | stld-20200930xex32d2.htm |
Balance Sheet | Income Statement | Cash Flow |
---|---|---|
Assets, Equity
|
Rev, G Profit, Net Income
|
Ops, Inv, Fin
|
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
ended
OR
Commission File Number
(Exact name of registrant as specified in its charter)
| ||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
(Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (
Securities registered pursuant to Section 12(b) of the Act.
Title of each class | Trading Symbol | Name of each exchange on which registered |
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 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.
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).
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 definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act).
|
| 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
As of October 29, 2020, Registrant had
STEEL DYNAMICS, INC.
Table of Contents
PART I. Financial Information | ||
Page | ||
Consolidated Balance Sheets as of September 30, 2020 (unaudited) and December 31, 2019 | 1 | |
2 | ||
3 | ||
4 | ||
5 | ||
Management’s Discussion and Analysis of Financial Condition and Results of Operations | 16 | |
24 | ||
25 | ||
26 | ||
26 | ||
27 | ||
27 | ||
27 | ||
27 | ||
28 | ||
28 | ||
29 | ||
STEEL DYNAMICS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
| ||||||
September 30, | December 31, | |||||
2020 | 2019 | |||||
Assets | (unaudited) | |||||
Current assets | ||||||
Cash and equivalents | $ | | $ | | ||
Short-term investments | - | | ||||
Accounts receivable, net | | | ||||
Accounts receivable-related parties | | | ||||
Inventories | | | ||||
Other current assets | | | ||||
Total current assets | | | ||||
Property, plant and equipment, net | | | ||||
Intangible assets, net | | | ||||
Goodwill | | | ||||
Other assets | | | ||||
Total assets | $ | | $ | | ||
Liabilities and Equity | ||||||
Current liabilities | ||||||
Accounts payable | $ | | $ | | ||
Accounts payable-related parties | | | ||||
Income taxes payable | | | ||||
Accrued payroll and benefits | | | ||||
Accrued interest | | | ||||
Accrued expenses | | | ||||
Current maturities of long-term debt | | | ||||
Total current liabilities | | | ||||
Long-term debt | | | ||||
Deferred income taxes | | | ||||
Other liabilities | | | ||||
Total liabilities | | | ||||
Commitments and contingencies | ||||||
Redeemable noncontrolling interests | | | ||||
Equity | ||||||
Common stock voting, $ | ||||||
| ||||||
shares outstanding, as of September 30, 2020 and December 31, 2019, respectively | | | ||||
Treasury stock, at cost; | ||||||
as of September 30, 2020 and December 31, 2019, respectively | ( | ( | ||||
Additional paid-in capital | | | ||||
Retained earnings | | | ||||
Accumulated other comprehensive income (loss) | | ( | ||||
Total Steel Dynamics, Inc. equity | | | ||||
Noncontrolling interests | ( | ( | ||||
Total equity | | | ||||
Total liabilities and equity | $ | | $ | |
See notes to consolidated financial statements.
1
STEEL DYNAMICS, INC.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(in thousands, except per share data)
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net sales | |||||||||||
Unrelated parties | $ | | $ | | $ | | $ | | |||
Related parties | | | | | |||||||
Total net sales | | | | | |||||||
Costs of goods sold | | | | | |||||||
Gross profit | | | | | |||||||
Selling, general and administrative expenses | | | | | |||||||
Profit sharing | | | | | |||||||
Amortization of intangible assets | | | | | |||||||
Operating income | | | | | |||||||
Interest expense, net of capitalized interest | | | | | |||||||
Other (income) expense, net | | ( | | ( | |||||||
Income before income taxes | | | | | |||||||
Income tax expense | | | | | |||||||
Net income | | | | | |||||||
Net income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||
Net income attributable to Steel Dynamics, Inc. | $ | | $ | | $ | | $ | | |||
Basic earnings per share attributable to Steel Dynamics, | |||||||||||
Inc. stockholders | $ | $ | $ | | $ | ||||||
Weighted average common shares outstanding | |||||||||||
Diluted earnings per share attributable to Steel Dynamics, Inc. | |||||||||||
stockholders, including the effect of assumed conversions | |||||||||||
when dilutive | $ | $ | $ | | $ | ||||||
Weighted average common shares and share equivalents outstanding | |||||||||||
Dividends declared per share | $ | $ | $ | $ |
See notes to consolidated financial statements.
2
STEEL DYNAMICS, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Net income | $ | | $ | | $ | | $ | | |||
Other comprehensive income (loss) - net unrealized gain (loss) on | |||||||||||
cash flow hedging derivatives, net of income tax | ( | ( | | ( | |||||||
Comprehensive income | | | | | |||||||
Comprehensive income attributable to noncontrolling interests | ( | ( | ( | ( | |||||||
Comprehensive income attributable to Steel Dynamics, Inc. | $ | | $ | | $ | | $ | |
See notes to consolidated financial statements.
3
STEEL DYNAMICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(in thousands)
Three Months Ended | Nine Months Ended | ||||||||||
September 30, | September 30, | ||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||
Operating activities: | |||||||||||
Net income | $ | | $ | | $ | | $ | | |||
Adjustments to reconcile net income to net cash provided by | |||||||||||
operating activities: | |||||||||||
Depreciation and amortization | | | | | |||||||
Equity-based compensation | | | | | |||||||
Deferred income taxes | | | | | |||||||
Other adjustments | | ( | | ( | |||||||
Changes in certain assets and liabilities: | |||||||||||
Accounts receivable | ( | | ( | | |||||||
Inventories | ( | | | | |||||||
Other assets | ( | | | | |||||||
Accounts payable | | | | ( | |||||||
Income taxes receivable/payable | ( | | | | |||||||
Accrued expenses | | | ( | ( | |||||||
Net cash provided by operating activities | | | | | |||||||
Investing activities: | |||||||||||
Purchases of property, plant and equipment | ( | ( | ( | ( | |||||||
Purchases of short-term investments | - | ( | ( | ( | |||||||
Proceeds from maturities of short-term investments | | | | | |||||||
Acquisition of business, net of cash and restricted cash acquired | ( | ( | ( | ( | |||||||
Other investing activities | | | | | |||||||
Net cash used in investing activities | ( | ( | ( | ( | |||||||
Financing activities: | |||||||||||
Issuance of current and long-term debt | | | | | |||||||
Repayment of current and long-term debt | ( | ( | ( | ( | |||||||
Dividends paid | ( | ( | ( | ( | |||||||
Purchases of treasury stock | - | ( | ( | ( | |||||||
Other financing activities | ( | ( | ( | ( | |||||||
Net cash used in financing activities | ( | ( | ( | ( | |||||||
Increase (decrease) in cash, cash equivalents, and restricted cash | ( | | ( | | |||||||
Cash, cash equivalents, and restricted cash at beginning of period | | | | | |||||||
Cash, cash equivalents, and restricted cash at end of period | $ | | $ | | $ | | $ | | |||
Supplemental disclosure information: | |||||||||||
Cash paid for interest | $ | | $ | | $ | | $ | | |||
Cash paid for income taxes, net | $ | | $ | | $ | | $ | |
See notes to consolidated financial statements.
4
Note 1. Description of the Business and Significant Accounting Policies
Description of the Business
Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is a domestic manufacturer of steel products and metals recycler. The company has
Steel Operations Segment. Steel operations include the company’s Butler Flat Roll Division, Columbus Flat Roll Division, The Techs galvanizing lines, Heartland Flat Roll Division, United Steel Supply, Structural and Rail Division, Engineered Bar Products Division, Vulcan Threaded Products, Inc., Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, with several coating and processing lines. Steel operations accounted for
Metals Recycling Operations Segment. Metals recycling operations consists of OmniSource, LLC (OmniSource), and includes both ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services, including Omni Mexico (formerly Zimmer, S.A de C.V), acquired August 3, 2020 (refer to Note 2. Acquisition). Metals recycling operations accounted for
Steel Fabrication Operations Segment. Steel fabrication operations include the company’s New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for
Other. Other operations consists of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of smaller joint ventures, and the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and certain profit sharing expenses.
Significant Accounting Policies
Principles of Consolidation. The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling and redeemable noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries.
Use of Estimates. These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; allowances for credit losses for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions.
In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, 2019.
5
Note 1. Description of the Business and Significant Accounting Policies (Continued)
Cash and Equivalents, and Restricted Cash
Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash and equivalents is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of $
Goodwill
The company’s goodwill consisted of the following at September 30, 2020, and December 31, 2019, (in thousands):
September 30, | December 31, | ||||||||
2020 | 2019 | ||||||||
Steel Operations Segment | $ | | $ | | |||||
Metals Recycling Operations Segment | | | |||||||
Steel Fabrication Operations Segment | | | |||||||
$ | | $ | |
The company acquired Omni Mexico (formerly Zimmer S.A. de C.V.) on August 3, 2020 (refer to Note 2. Acquisition) resulting in a preliminary purchase price allocation in which $
Credit Losses
ASU 2016-13, Financial Instruments - Credit Losses and its subsequent corresponding updates (ASC 326), requires an entity to use a forward-looking expected loss model versus the incurred loss model for most financial instruments, including accounts receivable. The company adopted ASC 326 effective January 1, 2020, using the modified retrospective transition method, with no impact on the company’s financial position, results of operations or cash flows.
The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible.
At September 30, 2020, the company reported $
6
Note 2. Acquisition
On August 3, 2020, the company acquired Zimmer, S.A. de C.V. (“Zimmer”) for cash consideration of $
Note 3. Earnings Per Share
Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance awards, and are excluded from the computation in periods in which they have an anti-dilutive effect. There were
Three Months Ended September 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average | Average | ||||||||||||||||
Net Income | Shares | Per Share | Net Income | Shares | Per Share | ||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||
Basic earnings per share | $ | | | $ | | $ | | | $ | | |||||||
Dilutive common share equivalents | - | | - | | |||||||||||||
Diluted earnings per share | $ | | | $ | | $ | | | $ | |
Nine Months Ended September 30, | |||||||||||||||||
2020 | 2019 | ||||||||||||||||
Weighted | Weighted | ||||||||||||||||
Average |