Press release
Algoma Steel Group Reports Fiscal 2023 Third Quarter Results
Results In Line with Previously Announced Expectations Completed Phase 1 Plate Mill Modernization Commissioning All Operations Returned to Normal Production
About this update from Algoma Steel Group Inc.
[{"type":"text","content":"Results In Line with Previously Announced Expectations Completed Phase 1 Plate Mill Modernization Commissioning All Operations Returned to Normal Production Levels at January 1, 2023 Electric Arc Furnace Construction Advancing as Planned SAULT STE. MARIE, Ontario, Feb. 13, 2023 (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 third quarter ended December 31, 2022. Unless otherwise specified, all amounts are in Canadian dollars. Business Highlights and Fiscal 2023 to Fiscal 2022 Third Quarter Comparisons Consolidated revenue of $567.8 million, compared to $1.06 billion in the prior-year quarter.Consolidated loss from operations of $65.7 million, compared to income of $446.1 million in the prior-year quarter.Net loss of $69.8 million, or $0.64 per diluted share, compared to income of $123.0 million, or $0.92 per diluted share in the prior-year quarter.Adjusted EBITDA of $(35.9) million and Adjusted EBITDA margin of (6.3)%, compared to $457.3 million and 42.9% in the prior-year quarter (See “Non-IFRS Measures” below).Liquidity remained strong with a cash balance of $245 million and $239 million available under the Company’s ABL credit facility.Cash flows used in operations of $128.6 million, compared to cash generated of $318.4 million in the prior-year quarter.Shipments of 458,341 tons, compared to 552,544 tons in the prior-year quarter.Paid quarterly dividend of US$0.05/share. Michael Garcia, the Company’s Chief Executive Officer, commented, “I have been disappointed by the level of production and shipments in the last two quarters. As such, my management team and I have been laser-focused on rectifying these shortfalls and we believe the challenges experienced over the prior quarters are now largely behind us, and our facilities are returning to normal production levels. Our fiscal third quarter shipments were in line with our previously disclosed guidance. We are also encouraged by the recent rebound in North American hot rolled coil steel prices and continued robustness in plate pricing, which are supported by forward curves reflecting an expectation of stability as global demand recovers.” “We have invested strategically to capture market upside opportuniti...