Commercial Metals Company · NYSE:CMC
Commercial Metals — Q2 2021 Earnings Presentation
19 slides from Commercial Metals's earnings presentation, Mar 18, 2021
Slide 1: Q2 FY 2021 Supplemental Slides
Q2 FY 2021 SUPPLEMENTAL SLIDES MARCH 18, 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 Delivering continued strong results in a volatile environment • Record second quarter Core EBITDA Q2 Core EBITDA1 • Seventh consecutive quarter of 10%+ ROIC of $171M Up 18% y/y Sharp focus on optimizing factors within CMC’s control • Driving efficiencies throughout th
Slide 4: Performance Drivers
OPERATIONAL UPDATE • Strong cost management throughout vertically integrated footprint − North America mill conversion costs continued to trend downward year-over-year PERFORMANCE DRIVERS • Successful realization of steel product price adjustments; margins expanded month-to-month throughout the quar
Slide 5: Consolidated Operating Results – Quarterly
CONSOLIDATED OPERATING RESULTS – QUARTERLY Performance Summary Core EBITDA Bridge – Q2 2020 to Q2 2021 Units in 000’s unless noted otherwise $ Millions Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 Q2 ‘21 200 External Finished 180 1,445 1,475 1,541 1,518 1,436 Steel Tons Shipped1 3 160 (17) 22 19 Core EBITDA $145,257
Slide 6: North America – Quarterly
NORTH AMERICA – QUARTERLY Performance Summary North America – Key Margins Units in 000’s unless noted otherwise $ / ton Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 Q2 ‘21 800 758 710 731 180 697 663 160 External Finished 700 DP and SP Margin Over Scrap Steel Tons 1,065 1,101 1,161 1,121 1,083 600 140 Adjusted EBITD
Slide 7: Europe – Quarterly
EUROPE– QUARTERLY Performance Summary Europe – Key Margins Units in 000’s unless noted otherwise $ / ton Q2 ’20 Q3 ’20 Q4 ’20 Q1 ‘21 Q2 ‘21 220 70 204 198 198 196 199 60 Steel Product Margin Over Scrap External Finished Steel 200 380 374 380 397 353 Tons Shipped1 Adjusted EBITDA per ton 50 180 40 Ad
Slide 8: Cash Flow Profile
CASH FLOW PROFILE ADJUSTED EBITDA LESS CAPITAL EXPENDITURES AND DISBURSEMENTS TO STAKEHOLDERS 1 $250 $226 $205 $200 $149 $150 $100 $73 $50 $0 ($4) ($50) ($26) ($100) ($108) ($150) FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 LTM Q2 FY'21 CMC’s cash flow capabilities have been greatly enhanced thr
Slide 9: Balance Sheet Strength
BALANCE SHEET STRENGTH DEBT MATURITY PROFILE PROVIDES STRATEGIC FLEXIBILITY DEBT MATURIT Y SCHEDULE Q2 FY’21 LIQUIDIT Y (US$ in millions) (US$ in millions) Debt refinancing in the second quarter reduced notes outstanding by $50 million and lowered CMC’s annual debt cost by roughly $8.5 million $367
Slide 10: Leverage Profile
LEVERAGE PROFILE NET DEBT 1,2 / EBITDA 3 NET DEBT-TO-CAPITALIZATION 4 4.5x 60% 4.0x 50% 3.5x 3.0x 40% 2.5x 30% 2.0x 3.9x 46% 3.2x 42% 1.5x 20% 37% 2.5x 33% 32% 1.0x 1.9x 24% 1.6x 10% 21% 22% 18% 1.2x 1.1x 1.2x 0.5x 0.9x NM 0% Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q2
Slide 11: Appendix: Non-GAAP Reconciliations
APPENDIX: NON-GAAP RECONCILIATIONS Q2 FY21 Supplemental Slides | March 18, 2021 11
Slide 12: Return on Invested Capital
RETURN ON INVESTED CAPITAL ($ in thousands) 3 MONTHS ENDED 2/28/2021 Earnings from continuing operations before income taxes $87,174 Plus: interest expense 14,021 Operating profit $101,195 Operating profit $101,195 Less: income tax at Q2 effective rate of 24.0% 24,287 Net operating profit after tax
Slide 13: Core EBITDA from Continuing Operations Reconciliation
CORE EBITDA FROM CONTINUING OPERATIONS RECONCILIATION 3 MONTHS ENDED 12 MONTHS ENDED ($ in thousands) 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 2/28/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $66,233 $63,911 $67,782 $64,169 $63,596 $82,755 $2
Slide 14: Adjusted Earnings from Continuing Operations Reconciliation
ADJUSTED EARNINGS FROM CONTINUING OPERATIONS RECONCILIATION ($ in thousands) 3 MONTHS ENDED 12 MONTHS ENDED 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 11/30/2019 2/28/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 Earnings from continuing operations $66,233 $63,911 $67,782 $64,169 $63,596 $82,
Slide 15: Adjusted Segment EBITDA Margin
ADJUSTED SEGMENT EBITDA MARGIN ($ in thousands) 3 MONTHS ENDED 2/28/2021 11/30/2020 8/31/2020 5/31/2020 2/29/2020 North America Adjusted EBITDA from continuing operations $171,612 $155,634 $174,219 $159,394 $152,831 North America net sales 1,257,486 1,195,013 1,224,849 1,167,081 1,161,283 North Amer
Slide 16: Adjusted EBITDA Less Capital Expenditures and Disbursements to Stakeholders
ADJUSTED EBITDA LESS CAPITAL EXPENDITURES AND DISBURSEMENTS TO STAKEHOLDERS ($ in thousands) 12 MONTHS ENDED 6 MONTHS ENDED 2/28/2021 8/31/2020 8/31/2019 8/31/2018 8/31/2017 8/31/2016 8/31/2015 2/28/2021 2/29/2020 Earnings from continuing operations $262,095 $278,302 $198,779 $135,237 $50,175 $62,00
Slide 17: Net Debt to EBITDA and Net Debt to Capitalization Reconciliations
NET DEBT TO EBITDA AND NET DEBT TO CAPITALIZATION RECONCILIATIONS 3 MONTHS ENDED ($ in thousands) 2/28/2021 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 $1,011,035 $1,064,893 $1,065,536 $1,153,800 $1,144,573 $1,179,44
Slide 18: 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 debt extinguishment costs, certain gains on sale of assets, certain facili
Slide 19: 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 Q2 FY21 Supplemental Slides | March 18, 2021 19
Commercial Metals Company — Q2 2021 Earnings Presentation on 6ix