Press release
Algoma Steel Group Reports Fiscal 2024 First Quarter Financial Results
First Quarter Results Ahead of Previously Announced Expectations Solid Performance from Operations Resulted in Strong Cash Flow Generation Reiterated Outlook
About this update from Algoma Steel Group Inc.
[{"type":"text","content":"First Quarter Results Ahead of Previously Announced Expectations Solid Performance from Operations Resulted in Strong Cash Flow Generation Reiterated Outlook on Transformative EAF Project with $74 Million Invested in Quarter SAULT STE. MARIE, Ontario, Aug. 10, 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 first quarter ended June 30, 2023. Unless otherwise specified, all amounts are in Canadian dollars. Business Highlights and Fiscal 2024 to Fiscal 2023 First Quarter Comparisons Consolidated revenue of $827.2 million, compared to $934.1 million in the prior-year quarter.Consolidated income from operations of $164.3 million, compared to $328.9 million in the prior-year quarter.Net income of $130.9 million, compared to $301.4 million in the prior-year quarter.Adjusted EBITDA of $191.2 million and Adjusted EBITDA margin of 23.1%, compared to $357.7 million and 38.3% in the prior-year quarter (See “Non-IFRS Measures” below).Cash flows generated from operations of $163.9 million, compared to $276.6 million in the prior-year quarter.Shipments of 569,433 tons, compared to 537,524 tons in the prior-year quarter.Declared quarterly dividend of US$0.05/share. Michael Garcia, the Company’s Chief Executive Officer, commented, “Thanks to the dedicated efforts of our employees, we delivered results that were modestly ahead of our previously disclosed outlook. We also made substantial progress on our transformative EAF project, deploying the next $74 million in the quarter to bring the cumulative total invested at June 30, 2023, to $341 million, or roughly 40% of the total expected cost, funded from existing excess cash from operations, as well as draws on committed project loan facilities. We expect to fund the remainder of the project with a combination of cash on hand, availability under our federal Strategic Innovation Fund (SIF) loan, drawdown of excess working capital, and expected cash flows from operations. We are uniquely positioned to simultaneously deliver strong financial results from our existing portfolio while advancing towards EAF commissioning, expected at the end of 2024.” First Quarter Fiscal 2024 Financial Results First quarter revenue totaled $827...