Commercial Metals Company · NYSE:CMC
Commercial Metals — Q1 FY2021 Earnings Presentation
18 slides from Commercial Metals's earnings presentation, Jan 11, 2021
Slide 1: Q1 FY 2021 Supplemental Slides
Q1 FY 2021 SUPPLEMENTAL SLIDES JANUARY 11, 2021
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS This presentation contains or incorporates by reference a number of "forward-looking statements" within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade acti
Slide 3: Key Takeaways From Today's Call
KEY TAKEAWAYS FROM TODAY’S CALL Controlling the controllables • Cost improvements year-over-year in both North America and Europe Q1 Core EBITDA1 of $157M Continued progress on strategic operational initiatives Down 10% y/y • Network optimization benefits • Growth in merchant bar and wire rod shipme
Slide 4: Performance Drivers / Operational Update
OPERATIONAL UPDATE • Strong cost management throughout North America vertical footprint drove benefits on both a sequential and year-over-year PERFORMANCE DRIVERS basis − Mill conversion costs per ton lowest in last two years • North America Steel Product margins pressured sequentially on higher scr
Slide 5: Consolidated Operating Results – Quarterly
CONSOLIDATED OPERATING RESULTS – QUARTERLY Performance Summary Core EBITDA Bridge – Q1 2020 to Q1 2021 Units in 000’s unless noted otherwise $ Millions Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 200 External Finished 180 1,462 1,445 1,475 1,541 1,518 Steel Tons Shipped1 (19) 160 (0) 3 (2) Core EBITDA $174,4
Slide 6: North America – Quarterly
NORTH AMERICA – QUARTERLY Performance Summary North America – Key Margins Units in 000’s unless noted otherwise $ / ton Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 800 730 758 710 731 180 697 External Finished 700 160 DP and SP Margin Over Scrap Steel Tons 1,124 1,065 1,101 1,161 1,121 140 Adjusted EBITDA pe
Slide 7: Europe – Quarterly
EUROPE– QUARTERLY Performance Summary Europe – Key Margins Units in 000’s unless noted otherwise $ / ton Q1 ’20 Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 240 70 217 220 60 Steel Product Margin Over Scrap External Finished Steel 338 380 374 380 397 198 198 196 199 Tons Shipped1 Adjusted EBITDA per ton 200 50 180 4
Slide 8: Cash Flow Profile
CASH FLOW PROFILE ADJUSTED EBITDA LESS CAPITAL EXPENDITURES AND DISBURSEMENTS TO STAKEHOLDERS 1 $250 $226 $217 $200 $149 $150 $100 $73 $50 $0 ($4) ($50) ($26) ($100) ($108) ($150) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LTM Q1 FY'21 CMC’s cash flow capabilities have been greatly enhanced thr
Slide 9: Balance Sheet Strength
BALANCE SHEET STRENGTH DEBT MATURITY PROFILE PROVIDES STRATEGIC FLEXIBILITY DEBT MATURIT Y SCHEDULE Q1 FY’21 LIQUIDIT Y (US$ in millions) (US$ in millions) $465 Cash and Cash Equivalents Revolving 5.750% Credit Facility 4.875% Notes Notes 5.375% Notes 347 Revolver $350 $350 $330 $300 179 U.S. Accoun
Slide 10: Leverage Profile
LEVERAGE PROFILE NET DEBT 1,2 / EBITDA 3 NET DEBT-TO-CAPITALIZATION 4 4.5x 60% 4.0x 50% 3.5x 3.0x 40% 2.5x 30% 2.0x 3.9x 46% 3.2x 42% 1.5x 20% 37% 2.5x 33% 32% 1.0x 1.9x 24% 1.6x 10% 21% 18% 1.2x 1.1x 0.5x 0.9x NM 0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2019 Q3 2019 Q4
Slide 11: Appendix: Non-GAAP Reconciliations
APPENDIX: NON-GAAP RECONCILIATIONS Q1 FY21 Supplemental Slides | January 11, 2021 11
Slide 12: Core EBITDA From Continuing Operations Reconciliation
CORE EBITDA FROM CONTINUING OPERATIONS RECONCILIATION ($ in thousands) 3 MONTHS ENDED 12 MONTHS ENDED 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 8/31/2019 11/30/2020 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $63,911 $67,782 $64,169 $63,596 $82,755 $85,880 $
Slide 13: Adjusted Earnings From Continuing Operations Reconciliation
ADJUSTED EARNINGS FROM CONTINUING OPERATIONS RECONCILIATION ($ in thousands) 3 MONTHS ENDED 12 MONTHS ENDED 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 8/31/2019 11/30/2020 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $63,911 $67,782 $64,169 $63,596 $82,755 $85
Slide 14: Adjusted Segment EBITDA Margin
ADJUSTED SEGMENT EBITDA MARGIN ($ in thousands) 3 MONTHS ENDED 12 MO 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 North America Adjusted EBITDA from continuing operations $155,634 $174,219 $159,394 $152,831 $174,732 North America net sales 1,195,013 1,224,849 1,167,081 1,161,283 1,216,720 Nor
Slide 15: Adjusted EBITDA Less Capital Expenditures and Disbursements to Stakeholders
ADJUSTED EBITDA LESS CAPITAL EXPENDITURES AND DISBURSEMENTS TO STAKEHOLDERS ($ in thousands) 12 MONTHS ENDED 3 MONTHS ENDED 11/30/2020 8/31/2020 8/31/2019 8/31/2018 8/31/2017 8/31/2016 8/31/2015 11/30/2020 11/30/2019 Earnings from continuing operations $259,458 $278,302 $198,779 $135,237 $50,175 $62
Slide 16: Net Debt to EBITDA and Net Debt to Capitalization Reconciliations
NET DEBT TO EBITDA AND NET DEBT TO CAPITALIZATION RECONCILIATIONS ($ in thousands) 3 MONTHS ENDED 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 8/31/2019 5/31/2019 2/28/2019 11/30/2018 8/31/2018 5/31/2018 Long-term debt $1,064,893 $1,065,536 $1,153,800 $1,144,573 $1,179,443 $1,227,214 $1,306,8
Slide 17: Definitions for Non-GAAP Financial Measures
DEFINITIONS FOR NON-GAAP FINANCIAL MEASURES ADJUSTED EARNINGS FROM CONTINUING OPERATIONS Adjusted earnings from continuing operations is a non-GAAP financial measure that is equal to earnings from continuing operations before certain facility closure costs, asset impairments, labor cost government r
Slide 18: Thank You
THANK YOU CORPORATE OFFICE 6565 N. MacArthur Blvd Suite 800 Irving, TX 75039 Phone: (214) 689.4300 INVESTOR RELATIONS Phone: (972) 308.5349 Fax: (214) 689.4326 IR@cmc.com Q1 FY21 Supplemental Slides | January 11, 2021 18
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