Press release
Algoma Steel Group Reports Fiscal 2023 Second Quarter Results
Results In Line with Previously Announced Expectations Completed Labour Negotiations and Advanced Plate Mill Modernization Commissioning Electric Arc Furnace
About this update from Algoma Steel Group Inc.
[{"type":"text","content":"Results In Line with Previously Announced Expectations Completed Labour Negotiations and Advanced Plate Mill Modernization Commissioning Electric Arc Furnace Construction Advancing as Planned Repurchased US$400 Million, or ~28% of Shares SAULT STE. MARIE, Ontario, Nov. 07, 2022 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for its fiscal second quarter ended September 30, 2022. Unless otherwise specified, all amounts are in Canadian dollars. Business Highlights and Fiscal 2023 to Fiscal 2022 Second Quarter Comparisons Consolidated revenue of $599.2 million, compared to $1.01 billion in the prior-year quarter.Consolidated income from operations of $5.6 million, compared to $402.1 million in the prior-year quarter.Net income of $87.2 million, or $0.36 per diluted share, compared to $288.2 million, or $4.02 per diluted share in the prior-year quarter.Adjusted EBITDA of $82.7 million and Adjusted EBITDA margin of 13.8%, compared to $430.6 million and 42.6% in the prior-year quarter (See “Non-IFRS Measures” below).Cash flows used in operations of $66.1 million, compared to cash generated of $380.1 million in the prior-year quarter.Shipments of 435,202 tons, compared to 587,340 tons in the prior-year quarter.Paid quarterly dividend of US$0.05/share.Completed US$400 million Substantial Issuer Bid (“SIB”), resulting in the repurchase of 27.9% of issued and outstanding common shares as of the time the SIB was announced.The Company ratified new five-year collective agreements with its unionized workforce represented by United Steelworkers Local 2724 and 2251. Michael Garcia, the Company’s Chief Executive Officer, commented, “As previously disclosed, the fiscal second quarter presented a number of operational challenges that adversely impacted our results, while we worked against the backdrop of steel pricing uncertainty. We are focused on overcoming those transitory events to return our facilities to full operating capacity. We estimate the operational challenges to have a financial impact of $130 million on Adjusted EBITDA, with approximately 60% incurred in the second fiscal quarter and the balance to affect the third fiscal quarter. We continue to advance our transformative elec...