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8-K - FORM 8-K - COMMERCIAL METALS Co | d83054e8vk.htm |
Exhibit 99.1
COMMERCIAL METALS COMPANY REPORTS INCOME OF $36.2 MILLION
OR $0.31 PER SHARE FOR THE THIRD QUARTER
OR $0.31 PER SHARE FOR THE THIRD QUARTER
Irving, TX June 21, 2011 Commercial Metals Company (NYSE: CMC) today reported net income
of $36.2 million or $0.31 per diluted share on net sales of $2.1 billion for the quarter ended May
31, 2011. This compares with a net loss of $8.8 million or $0.08 per diluted share on net sales of
$1.8 billion for the third quarter last year. This years third quarter included after-tax LIFO
expense of $3.9 million or $0.03 per diluted share compared with expense of $22 million or $0.20
per diluted share in last years third quarter.
Net loss for the nine months ended May 31, 2011 was $9.3 million or $0.08 per diluted share on
net sales of $5.7 billion. For the same period last year, the Company had a net loss of $213.3
million or $1.88 per diluted share on net sales of $4.5 billion. For the nine months ended May 31,
2011, after-tax LIFO expense was $43.8 million or $0.38 per diluted share compared with expense of
$16 million or $0.14 per diluted share last year.
Cash and short-term investments totaled $244 million as of May 31, 2011. There were no
outstanding borrowings against the $400 million revolving credit
line. Coverage ratio tests on our unused revolver and
public debt were met.
General Conditions
CMC Chairman and Chief Executive Officer Murray R. McClean said, The economic improvements
anticipated in last quarters outlook manifested itself in a turnaround from both the third quarter
of last year and the second quarter of this year. Four of our five operating segments achieved
profitability, and the remaining segment reduced its losses year over year. Our backlogs continue
to grow at higher pricing. With falling scrap prices at quarter end, LIFO expense netted to a
relatively modest number for the quarter. Improved operating performance gave us the confidence to
move forward with an important regional acquisition of G.A.M. Steel Pty. Ltd., a leading
distributor and processor of long products and plate based in Melbourne, Australia. This operation
enhances our existing steel service capabilities in Australia.
President and Chief Operating Officer Joe Alvarado commented on the operational highlights for
the quarter. An increase in demand plus a seasonal pick up supported higher finished goods pricing
and better margins for the Americas Mills segment. Prices stabilized within a range as we moved
through the quarter, reducing margin pressure on the Americas Fabrication segment as evidenced by
the reduction in losses quarter over quarter. On the international front, stronger than expected
GDP growth in Poland of 4.4% for the first quarter of calendar 2011 resulted in higher operating
rates, improved margins and improved profitability. Our technical teams continue to make progress
in process improvements and cost reductions at CMC Sisak in Croatia, but the market for line pipe
remains challenging.
(more)
(CMC Third Quarter Fiscal 2011 Page 2)
Americas Recycling
The Americas Recycling segment had an adjusted operating profit of $13.2 million (net of
pre-tax LIFO expense of $2.6 million). The adjusted operating profit in the third quarter of last
year was $14.2 million (net of pre-tax LIFO expense of $4.6 million). Ferrous scrap pricing was
stable during the quarter, but higher than last years quarter on consistent domestic mill demand;
export demand fell due to instability in the Middle East. Ferrous volumes were level with the prior
years quarter as flooding in the Midwest constrained flow. Nonferrous margins increased on both
price and volume improvements. The average ferrous scrap sales price for the third quarter was $354
per ton, a 16% increase over the prior year third quarter. Average nonferrous scrap pricing was
$3,413 per ton, up 18% from the prior year. Shipments of ferrous scrap totaled 557 thousand tons
compared to 562 thousand tons for the same period last year. Nonferrous scrap shipments totaled 67
thousand tons, 10% higher than last years quarter. The segment exported 6% of its ferrous scrap
tonnage and 36% of its nonferrous scrap tonnage during the quarter.
Americas Mills
Finished
goods pricing outpaced ferrous scrap price, resulting in expanded metal margins in
the third quarter of this year compared to both the second quarter of this year and the third
quarter of last year. Mill conversion costs per ton were lower versus the prior year on higher
operating rates. Shipment volumes were the highest of any quarter in the last three years, driven
by seasonal pickups and continued strength in certain regional markets.
The steel mills had an adjusted operating profit of $67.6 million compared to an adjusted
operating profit of $12.8 million in the same quarter last year. The quarter had pre-tax LIFO
income of $6.1 million compared to pre-tax LIFO expense of $21.7 million in last years third
quarter. The metal margin for the quarter was $320 per ton, up from the second quarters margin of
$289 per ton and last years third quarter of $280 per ton. The price of ferrous scrap consumed at
the mills during the quarter increased $57 per ton compared to last years quarter, and average
selling prices increased $97 per ton. Sales volumes were 637 thousand tons as compared to 606
thousand tons in the second quarter and 588 thousand tons in the prior year third quarter.
Americas Fabrication
Mill
prices to the downstream fabricating units stabilized during the quarter, allowing margins
to recover modestly. As a result, amounts accrued for potential contract losses were released.
Backlogs continued to grow in both tonnage and pricing. The overall market remains weak for
fabricated steel with credit availability, state and federal funding capacity, and unemployment
trends affecting the launch of new projects. The segment reported an adjusted operating loss
of $14.7 million compared to last years third quarter adjusted operating loss of $24.5 million.
The current quarter recorded pre-tax LIFO expense of $3.4 million compared to last years third
quarter which had a pre-tax LIFO expense of $22.2 million. The composite average fabricating
selling price was $839 per ton, 9% above last years third quarter price.
(more)
(CMC Third Quarter Fiscal 2011 Page 3)
International Mills
The Polish economy grew at a GDP rate of 4.4% in the first quarter of calendar 2011. With very good domestic construction demand and a strong German
merchant market, CMC Zawiercie (CMCZ) achieved its fifth consecutive quarterly adjusted operating
profit. CMCZ had adjusted operating income of $22.6 million compared to income of $1.1 million in
the third quarter of last year. Shipments totaled 425 thousand tons compared to 363 thousand tons
in the prior years third quarter. The average selling price increased 30% to PLN 1,913 per ton
compared to PLN 1,477 per ton for the same period last year on the strength of a better economy and
an upgraded product line. The average metal margin per ton increased significantly to PLN 756 from
PLN 481 in last years third quarter. Significant operational improvements at CMC Sisak resulted in
an adjusted operating loss of $7.2 million compared to the prior years loss of $12.0 million and
to the second quarters loss of $11.3 million.
International Marketing and Distribution
The International Marketing and Distribution segment remained profitable in the third quarter,
as it has for each of the last eight quarters. The segment achieved adjusted operating profit of
$17.0 million compared to adjusted operating profit of $30.9 million in last years third quarter.
The raw materials marketing operations led the segment in profitability.
The domestic steel import business continued its turnaround with another good quarter.
Australian results improved from the second quarter, which was affected by a cyclone and severe
flooding; however, the Australian market remains soft. Our steel import operation is on LIFO; for
the quarter it had pre-tax LIFO expense of $3.9 million compared to pre-tax LIFO income of $7.9
million in last years third quarter.
Outlook for Fourth Quarter
McClean concluded, The fourth quarter is normally a seasonally slower period and we would
expect a similar trend in this quarter. While we expect it to be a
profitable quarter, due to seasonality it will not be as strong as the
third quarter. We remain focused on improving
operational efficiency and translating the improvements to the bottom line.
Conference Call
CMC invites you to listen to a live broadcast of its third quarter 2011 conference call today,
Tuesday, June 21, 2011, at 11:00 a.m. ET. The call will be hosted by Murray McClean, Chairman and CEO; Joe
Alvarado, President and COO; and Barbara Smith, Senior Vice President and CFO, and can be accessed
via our website at www.cmc.com or at www.streetevents.com. In the event you are
unable to listen to the live broadcast, the call will be archived and available for replay within
two hours of the webcast. Financial and statistical information presented in the broadcast can be
found on CMCs website under Investor Relations.
(more)
(CMC Third Quarter Fiscal 2011 Page 4)
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal
products, related materials and services through a network including steel minimills, steel
fabrication and processing plants, construction-related product warehouses, a copper tube mill,
metal recycling facilities and marketing and distribution offices in the United States and in
strategic international markets.
Forward-Looking Statements
This news release contains forward-looking statements regarding the outlook for the Companys
financial results including net earnings (loss), operating profit
(loss), economic conditions, credit availability, product
pricing and demand, currency valuation, production rates, interest
rates, inventory levels, margins,
acquisitions, construction and operation of new facilities and general market conditions. These
forward-looking statements generally can be identified by phrases such as we, the company or its
management expects, anticipates, believes, estimates, intends, plans to, ought,
could, will, should, likely, appears, projects, forecasts, outlook, or other
similar words or phrases. There are inherent risks and uncertainties in any forward-looking
statements. Variances will occur and some could be materially different from our current opinion.
Developments that could impact the Companys expectations include the following: absence of
global economic recovery or possible recession relapse; solvency of financial institutions and
their ability or willingness to lend; success or failure of governmental efforts to stimulate the
economy, including restoring credit availability and confidence in a recovery; continued sovereign
debt problems within the euro zone and other foreign zones; customer non-compliance with contracts;
construction activity or lack thereof; decisions by governments affecting the level of steel
imports, including tariffs and duties; claims litigation and settlements; difficulties or delays in
the execution of construction contracts resulting in cost overruns or contract disputes;
unsuccessful or delayed implementation of new technology; metals pricing over which the Company
exerts little influence; increased capacity and product availability from competing steel minimills
and other steel suppliers, including import quantities and pricing; execution of cost minimization
strategies; ability to retain key executives; court decisions and regulatory rulings; industry
consolidation or changes in production capacity or utilization; global factors, including political
and military uncertainties; currency fluctuations; interest rate changes; availability and pricing
of raw material including scrap metal and energy, insurance and supply prices; passage of new, or
interpretation of existing, environmental laws and regulations; severe weather, especially in
Poland; and the pace of overall economic activity, particularly in China.
(more)
(CMC Third Quarter Fiscal 2011 Page 5)
Three months ended | Nine months ended | |||||||||||||||
(Short Tons in Thousands) | 5/31/11 | 5/31/10 | 5/31/11 | 5/31/10 | ||||||||||||
Americas Steel Mill Rebar Shipments |
312 | 335 | 913 | 814 | ||||||||||||
Americas Steel Mill Structural and Other Shipments |
325 | 253 | 902 | 793 | ||||||||||||
CMCZ Shipments |
425 | 363 | 1,095 | 1,000 | ||||||||||||
Total Mill Tons Shipped |
1,062 | 951 | 2,910 | 2,607 | ||||||||||||
Americas Steel Mill Average FOB Selling Price (Total Sales) |
$ | 705 | $ | 608 | $ | 658 | $ | 550 | ||||||||
Americas Steel Mill Average Cost Ferrous Scrap Utilized |
$ | 385 | $ | 328 | $ | 357 | $ | 293 | ||||||||
Americas Steel Mill Metal Margin |
$ | 320 | $ | 280 | $ | 301 | $ | 257 | ||||||||
Americas Steel Mill Average Ferrous Scrap Purchase Price |
$ | 342 | $ | 302 | $ | 321 | $ | 258 | ||||||||
CMCZ Mill Average FOB Selling Price (Total Sales) |
$ | 687 | $ | 493 | $ | 623 | $ | 448 | ||||||||
CMCZ Mill Average Cost Ferrous Scrap Utilized |
$ | 416 | $ | 332 | $ | 381 | $ | 297 | ||||||||
CMCZ Mill Metal Margin |
$ | 271 | $ | 161 | $ | 242 | $ | 151 | ||||||||
CMCZ Mill Average Ferrous Scrap Purchase Price |
$ | 341 | $ | 285 | $ | 315 | $ | 250 | ||||||||
Americas Fabrication Rebar Shipments |
217 | 230 | 607 | 591 | ||||||||||||
Americas Fabrication Structural and Post Shipments |
47 | 51 | 120 | 116 | ||||||||||||
Total Americas Fabrication Tons Shipped |
264 | 281 | 727 | 707 | ||||||||||||
Americas
Fabrication Average Selling Price (Excluding Stock
and Buyout Sales) |
$ | 839 | $ | 768 | $ | 798 | $ | 764 | ||||||||
Americas Recycling Tons Shipped |
624 | 623 | 1,755 | 1,584 |
BUSINESS SEGMENTS
(in thousands)
(in thousands)
Three months ended | Nine months ended | |||||||||||||||
5/31/11 | 5/31/10 | 5/31/11 | 5/31/10 | |||||||||||||
Net Sales |
||||||||||||||||
Americas Recycling |
$ | 479,776 | $ | 398,071 | $ | 1,306,133 | $ | 954,208 | ||||||||
Americas Mills |
546,015 | 432,198 | 1,459,333 | 1,073,556 | ||||||||||||
Americas Fabrication |
328,450 | 326,089 | 868,173 | 820,850 | ||||||||||||
International Mills |
344,164 | 215,690 | 798,315 | 532,220 | ||||||||||||
International Marketing and Distribution |
646,427 | 641,093 | 1,915,008 | 1,743,390 | ||||||||||||
Corporate and Eliminations |
(268,268 | ) | (247,987 | ) | (696,152 | ) | (634,369 | ) | ||||||||
Total Net Sales |
$ | 2,076,564 | $ | 1,765,154 | $ | 5,650,810 | $ | 4,489,855 | ||||||||
Adjusted Operating Profit (Loss): |
||||||||||||||||
Americas Recycling |
$ | 13,194 | $ | 14,240 | $ | 32,251 | $ | 6,196 | ||||||||
Americas Mills |
71,050 | 14,544 | 116,138 | (3,335 | ) | |||||||||||
Americas Fabrication |
(14,737 | ) | (24,452 | ) | (86,311 | ) | (90,685 | ) | ||||||||
International Mills |
15,456 | (10,885 | ) | 412 | (84,373 | ) | ||||||||||
International Marketing and Distribution |
16,978 | 30,941 | 53,588 | 62,158 | ||||||||||||
Corporate and Eliminations |
(30,592 | ) | (11,872 | ) | (57,592 | ) | (40,075 | ) |
(more)
CMC Third Quarter Fiscal 2011 Page 6)
COMMERCIAL METALS COMPANY
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands except share and per share data)
Condensed Consolidated Statements of Operations (Unaudited)
(in thousands except share and per share data)
Three months ended | Nine months ended | |||||||||||||||
5/31/11 | 5/31/10 | 5/31/11 | 5/31/10 | |||||||||||||
Net Sales |
$ | 2,076,564 | $ | 1,765,154 | $ | 5,650,810 | $ | 4,489,855 | ||||||||
Costs and Expenses: |
||||||||||||||||
Cost of Goods Sold |
1,861,125 | 1,645,250 | 5,205,197 | 4,253,574 | ||||||||||||
Selling, General and Administrative Expenses |
145,597 | 108,509 | 390,772 | 389,182 | ||||||||||||
Interest Expense |
18,254 | 18,184 | 54,857 | 57,871 | ||||||||||||
2,024,976 | 1,771,943 | 5,650,826 | 4,700,627 | |||||||||||||
Earnings (Loss) from Continuing Operations Before Taxes |
51,588 | (6,789 | ) | (16 | ) | (210,772 | ) | |||||||||
Income Taxes (Benefit) |
14,493 | 3,952 | 8,688 | (36,101 | ) | |||||||||||
Earnings (Loss) from Continuing Operations |
37,095 | (10,741 | ) | (8,704 | ) | (174,671 | ) | |||||||||
Earnings (Loss) from Discontinued Operations Before Taxes |
(1,429 | ) | 4,001 | (782 | ) | (62,513 | ) | |||||||||
Income Taxes (Benefit) |
(554 | ) | 1,723 | (303 | ) | (24,117 | ) | |||||||||
Earnings (Loss) from Discontinued Operations |
(875 | ) | 2,278 | (479 | ) | (38,396 | ) | |||||||||
Net Earnings (Loss) |
36,220 | (8,463 | ) | (9,183 | ) | (213,067 | ) | |||||||||
Less Net Earnings Attributable to Noncontrolling Interests |
55 | 363 | 163 | 278 | ||||||||||||
Net Earnings (Loss) Attributable to CMC |
$ | 36,165 | $ | (8,826 | ) | $ | (9,346 | ) | $ | (213,345 | ) | |||||
Basic Earnings (Loss) per Share Attributable to CMC |
||||||||||||||||
Earnings (Loss) from Continuing Operations |
$ | 0.32 | $ | (0.10 | ) | $ | (0.08 | ) | $ | (1.54 | ) | |||||
Earnings (Loss) from Discontinued Operations |
$ | (0.01 | ) | $ | 0.02 | $ | | $ | (0.34 | ) | ||||||
Net Earnings (Loss) |
$ | 0.31 | $ | (0.08 | ) | $ | (0.08 | ) | $ | (1.88 | ) | |||||
Diluted Earnings (Loss) per Share Attributable to CMC |
||||||||||||||||
Earnings (Loss) from Continuing Operations |
$ | 0.32 | $ | (0.10 | ) | $ | (0.08 | ) | $ | (1.54 | ) | |||||
Earnings (Loss) from Discontinued Operations |
$ | (0.01 | ) | $ | 0.02 | $ | | $ | (0.34 | ) | ||||||
Net Earnings (Loss) |
$ | 0.31 | $ | (0.08 | ) | $ | (0.08 | ) | $ | (1.88 | ) | |||||
Cash Dividends per Share |
$ | 0.12 | $ | 0.12 | $ | 0.36 | $ | 0.36 | ||||||||
Average Basic Shares Outstanding |
115,403,374 | 114,067,149 | 114,819,792 | 113,279,301 | ||||||||||||
Average Diluted Shares Outstanding |
116,360,755 | 114,067,149 | 114,819,792 | 113,279,301 |
(more)
(CMC Third Quarter Fiscal 2011 Page 7)
COMMERCIAL METALS COMPANY
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
May 31, | August 31, | |||||||
2011 | 2010 | |||||||
Assets: |
||||||||
Current Assets: |
||||||||
Cash and cash equivalents |
$ | 243,562 | $ | 399,313 | ||||
Accounts receivable, net |
936,223 | 824,339 | ||||||
Inventories |
889,464 | 674,680 | ||||||
Other |
230,479 | 276,874 | ||||||
Total Current Assets |
2,299,728 | 2,175,206 | ||||||
Net Property, Plant and Equipment |
1,205,136 | 1,232,268 | ||||||
Goodwill |
72,603 | 71,580 | ||||||
Other Assets |
177,591 | 227,099 | ||||||
$ | 3,755,058 | $ | 3,706,153 | |||||
Liabilities and Stockholders Equity: |
||||||||
Current Liabilities: |
||||||||
Accounts payable trade |
$ | 519,643 | $ | 504,388 | ||||
Accounts payable documentary letters of credit |
171,892 | 226,633 | ||||||
Accrued expenses and other payables |
376,812 | 324,897 | ||||||
Commercial Paper |
| 10,000 | ||||||
Notes payable |
8,372 | 6,453 | ||||||
Current maturities of long-term debt |
38,246 | 30,588 | ||||||
Total Current Liabilities |
1,114,965 | 1,102,959 | ||||||
Deferred Income Taxes |
43,688 | 43,668 | ||||||
Other Long-Term Liabilities |
118,378 | 108,870 | ||||||
Long-Term Debt |
1,165,482 | 1,197,282 | ||||||
Stockholders Equity Attributable to CMC |
1,312,325 | 1,250,736 | ||||||
Stockholders Equity Attributable to Noncontrolling Interests |
220 | 2,638 | ||||||
$ | 3,755,058 | $ | 3,706,153 | |||||
(more)
(CMC Third Quarter Fiscal 2011 Page 8)
COMMERCIAL METALS COMPANY
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Condensed Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Nine months ended | ||||||||
5/31/11 | 5/31/10 | |||||||
Cash Flows From (Used by) Operating Activities: |
||||||||
Net loss |
$ | (9,183 | ) | $ | (213,067 | ) | ||
Adjustments to reconcile net earnings (loss) to cash from (used by)
operating activities: |
||||||||
Depreciation and amortization |
120,810 | 128,393 | ||||||
Recoveries on receivables, net |
(2,922 | ) | (1,831 | ) | ||||
Share-based compensation |
9,240 | 5,590 | ||||||
Deferred income taxes |
1,357 | (72,304 | ) | |||||
Tax benefits from stock plans |
(2,367 | ) | (3,204 | ) | ||||
Gain on sale of assets and other |
(1,569 | ) | (529 | ) | ||||
Write-down of inventory |
7,593 | 44,680 | ||||||
Asset impairment |
| 32,613 | ||||||
Changes in Operating Assets and Liabilities, Net of Acquisitions: |
||||||||
Increase in accounts receivable |
(141,636 | ) | (107,275 | ) | ||||
Accounts receivable sold, net |
49,890 | 29,322 | ||||||
Increase in inventories |
(202,995 | ) | (41,880 | ) | ||||
Decrease in other assets |
60,100 | 13,851 | ||||||
Increase in accounts payable, accrued expenses, other payables
and income taxes |
59,172 | 209,441 | ||||||
Increase (decrease) in other long-term liabilities |
8,444 | (6,305 | ) | |||||
Net Cash Flows From (Used by) Operating Activities |
(44,066 | ) | 17,495 | |||||
Cash Flows From (Used by) Investing Activities: |
||||||||
Capital expenditures |
(51,539 | ) | (109,464 | ) | ||||
Proceeds from the sale of property, plant and equipment |
52,253 | 5,287 | ||||||
Proceeds from the sale of equity method investments |
4,224 | | ||||||
Acquisitions, net of cash acquired |
| (2,448 | ) | |||||
Increase in deposit for letters of credit |
(3,258 | ) | (27,238 | ) | ||||
Net Cash Flows From (Used By) Investing Activities |
1,680 | (133,863 | ) | |||||
Cash Flows From (Used by) Financing Activities: |
||||||||
Decrease in documentary letters of credit |
(54,741 | ) | (32,884 | ) | ||||
Short-term borrowings, net change |
(8,253 | ) | 61,317 | |||||
Repayments on long-term debt |
(23,473 | ) | (19,914 | ) | ||||
Proceeds from issuance of long-term debt |
1,463 | 22,437 | ||||||
Stock issued under incentive and purchase plans |
10,062 | 10,355 | ||||||
Cash dividends |
(41,313 | ) | (40,773 | ) | ||||
Purchase of non-controlling interests |
(3,980 | ) | | |||||
Tax benefits from stock plans |
2,367 | 3,204 | ||||||
Net Cash Flows From (Used By) Financing Activities |
(117,868 | ) | 3,742 | |||||
Effect of Exchange Rate Changes on Cash |
4,503 | (3,347 | ) | |||||
Decrease in Cash and Cash Equivalents |
(155,751 | ) | (115,973 | ) | ||||
Cash and Cash Equivalents at Beginning of Year |
399,313 | 405,603 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 243,562 | $ | 289,630 | ||||
(more)
(CMC Third Quarter Fiscal 2011 Page 9)
COMMERCIAL METALS COMPANY
Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)
Non-GAAP Financial Measures (Unaudited)
(dollars in thousands)
This press release uses financial statement measures not derived in accordance with
generally accepted accounting principles (GAAP). Reconciliations to the most comparable GAAP
measures are provided below.
Adjusted EBITDA:
Earnings before interest expense, income taxes, depreciation and amortization, and impairment
charges.
Adjusted EBITDA is a non-GAAP liquidity measure. It excludes Commercial Metals Companys largest
recurring non-cash charge, depreciation and amortization, including impairment charges. As a
measure of cash flow before interest expense, it is one guideline used to assess the Companys
ability to pay its current debt obligations as they mature and a tool to calculate possible future
levels of leverage capacity. Adjusted EBITDA to interest is a covenant test in certain of the
Companys note agreements.
Three Months | Nine Months | |||||||
Ended | Ended | |||||||
5/31/11 | 5/31/11 | |||||||
Net earnings (loss) attributable to CMC |
$ | 36,165 | $ | (9,346 | ) | |||
Interest expense |
18,254 | 54,857 | ||||||
Income taxes |
13,939 | 8,385 | ||||||
Depreciation and impairment charges |
39,179 | 120,810 | ||||||
Adjusted EBITDA |
$ | 107,537 | $ | 174,706 | ||||
Adjusted EBITDA to interest coverage for the quarter ended May 31, 2011:
$107,537 / 18,254 = 5.9
Total Capitalization:
Total capitalization is the sum of long-term debt, deferred income taxes, and stockholders equity.
The ratio of debt to total capitalization is a measure of current debt leverage. The following
reconciles total capitalization at May 31, 2011 to the nearest GAAP measure, stockholders equity:
Stockholders equity attributable to CMC |
$ | 1,312,325 | ||
Long-term debt |
1,165,482 | |||
Deferred income taxes |
43,688 | |||
Total capitalization |
$ | 2,521,495 |
Other Financial Information
Long-term debt to cap ratio as of May 31, 2011:
Debt divided by capitalization
Debt divided by capitalization
$1,165,482 / 2,521,495 = 46.2%
Total debt to cap plus short-term debt plus notes payable ratio as of May 31, 2011:
(1,165,482 + 38,246 + 8,372) / (2,521,495 + 38,246 + 8,372) = 47.2%
Current ratio as of May 31, 2011:
Current assets divided by current liabilities
$2,299,728 / 1,114,965 = 2.1
-(END)-
Contact: |
Debbie Okle | |
Director, Public Relations | ||
214.689.4354 |