x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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75-0725338
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification Number)
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Large accelerated filer
x
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Accelerated filer
¨
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Non-accelerated filer
¨
(Do not check if a smaller reporting company)
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Smaller reporting company
¨
|
|
|
|
|
|
|
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PART I.
|
FINANCIAL INFORMATION
|
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)
|
||||||||||||||||
|
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands, except share data)
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|
February 28, 2017
|
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February 29, 2016
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February 28, 2017
|
|
February 29, 2016
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||||||||
Net sales
|
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$
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1,149,621
|
|
|
$
|
1,019,697
|
|
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$
|
2,224,684
|
|
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$
|
2,174,556
|
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Costs and expenses:
|
|
|
|
|
|
|
|
|
||||||||
Cost of goods sold
|
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990,431
|
|
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884,876
|
|
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1,933,502
|
|
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1,882,118
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|
||||
Selling, general and administrative expenses
|
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107,119
|
|
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93,918
|
|
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215,986
|
|
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195,826
|
|
||||
Interest expense
|
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12,442
|
|
|
16,625
|
|
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25,740
|
|
|
34,929
|
|
||||
Loss on debt extinguishment
|
|
—
|
|
|
11,365
|
|
|
—
|
|
|
11,365
|
|
||||
|
|
1,109,992
|
|
|
1,006,784
|
|
|
2,175,228
|
|
|
2,124,238
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Earnings from continuing operations before income taxes
|
|
39,629
|
|
|
12,913
|
|
|
49,456
|
|
|
50,318
|
|
||||
Income taxes
|
|
9,990
|
|
|
2,064
|
|
|
12,643
|
|
|
13,836
|
|
||||
Earnings from continuing operations
|
|
29,639
|
|
|
10,849
|
|
|
36,813
|
|
|
36,482
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Earnings (loss) from discontinued operations before income taxes (benefit)
|
|
726
|
|
|
(446
|
)
|
|
(191
|
)
|
|
(1,018
|
)
|
||||
Income taxes (benefit)
|
|
33
|
|
|
(99
|
)
|
|
15
|
|
|
(101
|
)
|
||||
Earnings (loss) from discontinued operations
|
|
693
|
|
|
(347
|
)
|
|
(206
|
)
|
|
(917
|
)
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||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Net earnings
|
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30,332
|
|
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10,502
|
|
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36,607
|
|
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35,565
|
|
||||
Less net earnings attributable to noncontrolling interests
|
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—
|
|
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—
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|
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—
|
|
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—
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|
||||
Net earnings attributable to CMC
|
|
$
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30,332
|
|
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$
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10,502
|
|
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$
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36,607
|
|
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$
|
35,565
|
|
|
|
|
|
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|
|
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||||||||
Basic earnings (loss) per share attributable to CMC:
|
|
|
|
|
|
|
|
|
||||||||
Earnings from continuing operations
|
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$
|
0.25
|
|
|
$
|
0.09
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
Earnings (loss) from discontinued operations
|
|
0.01
|
|
|
—
|
|
|
—
|
|
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(0.01
|
)
|
||||
Net earnings
|
|
$
|
0.26
|
|
|
$
|
0.09
|
|
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$
|
0.32
|
|
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$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings (loss) per share attributable to CMC:
|
|
|
|
|
|
|
|
|
||||||||
Earnings from continuing operations
|
|
$
|
0.25
|
|
|
$
|
0.09
|
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
Earnings (loss) from discontinued operations
|
|
0.01
|
|
|
—
|
|
|
—
|
|
|
(0.01
|
)
|
||||
Net earnings
|
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$
|
0.26
|
|
|
$
|
0.09
|
|
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$
|
0.31
|
|
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$
|
0.30
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash dividends per share
|
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$
|
0.12
|
|
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$
|
0.12
|
|
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$
|
0.24
|
|
|
$
|
0.24
|
|
Average basic shares outstanding
|
|
115,736,369
|
|
|
115,429,550
|
|
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115,415,662
|
|
|
115,725,896
|
|
||||
Average diluted shares outstanding
|
|
117,120,208
|
|
|
116,507,591
|
|
|
117,007,958
|
|
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117,002,822
|
|
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
|
||||||||||||||||
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Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28,
2017 |
|
February 29,
2016 |
|
February 28,
2017 |
|
February 29,
2016 |
||||||||
Net earnings attributable to CMC
|
|
$
|
30,332
|
|
|
$
|
10,502
|
|
|
$
|
36,607
|
|
|
$
|
35,565
|
|
Other comprehensive income (loss), net of income taxes:
|
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
|
9,551
|
|
|
4,211
|
|
|
(11,980
|
)
|
|
(17,784
|
)
|
||||
Net unrealized gain (loss) on derivatives:
|
|
|
|
|
|
|
|
|
|
|
||||||
Unrealized holding gain, net of income taxes of $106, $221, $116 and $74
|
|
310
|
|
|
494
|
|
|
442
|
|
|
485
|
|
||||
Reclassification for gain included in net earnings, net of income taxes of $(64), $(28), $(111) and $(77)
|
|
(330
|
)
|
|
(56
|
)
|
|
(520
|
)
|
|
(174
|
)
|
||||
Net unrealized gain (loss) on derivatives, net of income taxes of $42, $193, $5 and $(3)
|
|
(20
|
)
|
|
438
|
|
|
(78
|
)
|
|
311
|
|
||||
Defined benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
||||||
Amortization of prior services, net of income taxes of $(2), $0, $(4) and $(1)
|
|
(9
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(3
|
)
|
||||
Defined benefit obligation, net of income taxes of $(2), $0, $(4) and $(1)
|
|
(9
|
)
|
|
(2
|
)
|
|
(18
|
)
|
|
(3
|
)
|
||||
Other comprehensive income (loss)
|
|
9,522
|
|
|
4,647
|
|
|
(12,076
|
)
|
|
(17,476
|
)
|
||||
Comprehensive income
|
|
$
|
39,854
|
|
|
$
|
15,149
|
|
|
$
|
24,531
|
|
|
$
|
18,089
|
|
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|
||||||||
(in thousands, except share data)
|
|
February 28, 2017
|
|
August 31, 2016
|
||||
Assets
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
395,546
|
|
|
$
|
517,544
|
|
Accounts receivable (less allowance for doubtful accounts of $5,283 and $6,427)
|
|
774,286
|
|
|
765,784
|
|
||
Inventories, net
|
|
720,786
|
|
|
652,754
|
|
||
Other current assets
|
|
96,422
|
|
|
112,043
|
|
||
Total current assets
|
|
1,987,040
|
|
|
2,048,125
|
|
||
Property, plant and equipment:
|
|
|
|
|
||||
Land
|
|
76,556
|
|
|
70,291
|
|
||
Buildings and improvements
|
|
489,384
|
|
|
487,305
|
|
||
Equipment
|
|
1,654,942
|
|
|
1,655,909
|
|
||
Construction in process
|
|
186,759
|
|
|
111,156
|
|
||
|
|
2,407,641
|
|
|
2,324,661
|
|
||
Less accumulated depreciation and amortization
|
|
(1,467,297
|
)
|
|
(1,429,612
|
)
|
||
|
|
940,344
|
|
|
895,049
|
|
||
Goodwill
|
|
66,530
|
|
|
66,373
|
|
||
Other noncurrent assets
|
|
137,919
|
|
|
121,322
|
|
||
Total assets
|
|
$
|
3,131,833
|
|
|
$
|
3,130,869
|
|
Liabilities and stockholders' equity
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable-trade
|
|
$
|
307,488
|
|
|
$
|
243,532
|
|
Accounts payable-documentary letters of credit
|
|
—
|
|
|
5
|
|
||
Accrued expenses and other payables
|
|
220,433
|
|
|
264,112
|
|
||
Current maturities of long-term debt
|
|
312,200
|
|
|
313,469
|
|
||
Total current liabilities
|
|
840,121
|
|
|
821,118
|
|
||
Deferred income taxes
|
|
55,625
|
|
|
63,021
|
|
||
Other long-term liabilities
|
|
121,930
|
|
|
121,351
|
|
||
Long-term debt
|
|
752,137
|
|
|
757,948
|
|
||
Total liabilities
|
|
1,769,813
|
|
|
1,763,438
|
|
||
Commitments and contingencies (Note 14)
|
|
|
|
|
||||
Stockholders' equity:
|
|
|
|
|
||||
Common stock, par value $0.01 per share; authorized 200,000,000 shares; issued 129,060,664 shares; outstanding 115,778,772 and 114,635,596 shares, respectively
|
|
1,290
|
|
|
1,290
|
|
||
Additional paid-in capital
|
|
336,018
|
|
|
358,745
|
|
||
Accumulated other comprehensive loss
|
|
(124,990
|
)
|
|
(112,914
|
)
|
||
Retained earnings
|
|
1,381,869
|
|
|
1,372,988
|
|
||
Less treasury stock, 13,281,892 and 14,425,068 shares at cost
|
|
(232,339
|
)
|
|
(252,837
|
)
|
||
Stockholders' equity attributable to CMC
|
|
1,361,848
|
|
|
1,367,272
|
|
||
Stockholders' equity attributable to noncontrolling interests
|
|
172
|
|
|
159
|
|
||
Total stockholders' equity
|
|
1,362,020
|
|
|
1,367,431
|
|
||
Total liabilities and stockholders' equity
|
|
$
|
3,131,833
|
|
|
$
|
3,130,869
|
|
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|
||||||||
|
|
Six Months Ended
|
||||||
(in thousands)
|
|
February 28,
2017 |
|
February 29,
2016 |
||||
Cash flows from (used by) operating activities:
|
|
|
|
|
||||
Net earnings
|
|
$
|
36,607
|
|
|
$
|
35,565
|
|
Adjustments to reconcile net earnings to cash flows from (used by) operating activities:
|
|
|
|
|
||||
Depreciation and amortization
|
|
60,789
|
|
|
63,541
|
|
||
Stock-based compensation
|
|
16,156
|
|
|
13,106
|
|
||
Deferred income taxes
|
|
(9,380
|
)
|
|
(4,614
|
)
|
||
Amortization of interest rate swaps termination gain
|
|
(3,798
|
)
|
|
(3,798
|
)
|
||
Provision for losses on receivables, net
|
|
1,381
|
|
|
2,740
|
|
||
Write-down of inventories
|
|
1,205
|
|
|
7,949
|
|
||
Asset impairment
|
|
553
|
|
|
—
|
|
||
Net gain on sales of assets and other
|
|
(195
|
)
|
|
(2,767
|
)
|
||
Loss on debt extinguishment
|
|
—
|
|
|
11,365
|
|
||
Tax benefit from stock plans
|
|
—
|
|
|
(55
|
)
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Accounts receivable
|
|
2,162
|
|
|
190,622
|
|
||
Proceeds (payments) on sales of accounts receivable programs, net
|
|
(5,102
|
)
|
|
11,504
|
|
||
Inventories
|
|
(68,456
|
)
|
|
111,544
|
|
||
Accounts payable, accrued expenses and other payables
|
|
9,374
|
|
|
(115,002
|
)
|
||
Changes in other operating assets and liabilities
|
|
(29,313
|
)
|
|
11,110
|
|
||
Net cash flows from operating activities
|
|
11,983
|
|
|
332,810
|
|
||
|
|
|
|
|
||||
Cash flows from (used by) investing activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(90,808
|
)
|
|
(62,437
|
)
|
||
Acquisitions, net of cash acquired
|
|
(25,366
|
)
|
|
—
|
|
||
Decrease (increase) in restricted cash
|
|
21,033
|
|
|
(49,145
|
)
|
||
Proceeds from the sale of property, plant and equipment and other
|
|
700
|
|
|
3,060
|
|
||
Proceeds from the sale of subsidiaries
|
|
524
|
|
|
—
|
|
||
Net cash flows used by investing activities
|
|
(93,917
|
)
|
|
(108,522
|
)
|
||
|
|
|
|
|
||||
Cash flows from (used by) financing activities:
|
|
|
|
|
||||
Cash dividends
|
|
(27,726
|
)
|
|
(27,839
|
)
|
||
Repayments on long-term debt
|
|
(6,148
|
)
|
|
(205,816
|
)
|
||
Stock issued under incentive and purchase plans, net of forfeitures
|
|
(5,408
|
)
|
|
(5,671
|
)
|
||
Contribution from noncontrolling interests
|
|
13
|
|
|
29
|
|
||
Increase (decrease) in documentary letters of credit, net
|
|
(5
|
)
|
|
(25,815
|
)
|
||
Short-term borrowings, net change
|
|
—
|
|
|
(20,090
|
)
|
||
Treasury stock acquired
|
|
—
|
|
|
(30,595
|
)
|
||
Debt extinguishment costs
|
|
—
|
|
|
(11,013
|
)
|
||
Tax benefit from stock plans
|
|
—
|
|
|
55
|
|
||
Decrease in restricted cash
|
|
—
|
|
|
1
|
|
||
Net cash flows used by financing activities
|
|
(39,274
|
)
|
|
(326,754
|
)
|
||
Effect of exchange rate changes on cash
|
|
(790
|
)
|
|
(1,179
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
|
(121,998
|
)
|
|
(103,645
|
)
|
||
Cash and cash equivalents at beginning of year
|
|
517,544
|
|
|
485,323
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
395,546
|
|
|
$
|
381,678
|
|
|
|
|
|
|
||||
Supplemental information:
|
|
|
|
|
||||
Noncash activities:
|
|
|
|
|
||||
Liabilities related to additions of property, plant and equipment
|
|
$
|
35,184
|
|
|
$
|
2,706
|
|
COMMERCIAL METALS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED)
|
|||||||||||||||||||||||||
|
Common Stock
|
Additional
|
Accumulated
Other |
|
Treasury Stock
|
Non-
|
|
||||||||||||||||||
(in thousands, except share data)
|
Number of
Shares |
Amount
|
Paid-In
Capital |
Comprehensive
Loss |
Retained
Earnings |
Number of
Shares |
Amount
|
controlling
Interests |
Total
|
||||||||||||||||
Balance, September 1, 2015
|
129,060,664
|
|
$
|
1,290
|
|
$
|
365,863
|
|
$
|
(113,535
|
)
|
$
|
1,373,568
|
|
(13,425,326
|
)
|
$
|
(245,961
|
)
|
$
|
149
|
|
$
|
1,381,374
|
|
Net earnings
|
|
|
|
|
35,565
|
|
|
|
|
35,565
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
(17,476
|
)
|
|
|
|
|
(17,476
|
)
|
||||||||||||||
Cash dividends ($0.24 per share)
|
|
|
|
|
(27,839
|
)
|
|
|
|
(27,839
|
)
|
||||||||||||||
Treasury stock acquired
|
|
|
|
|
|
(2,255,069
|
)
|
(30,595
|
)
|
|
(30,595
|
)
|
|||||||||||||
Issuance of stock under incentive and purchase plans, net of forfeitures
|
|
|
(27,640
|
)
|
|
|
1,155,466
|
|
21,969
|
|
|
(5,671
|
)
|
||||||||||||
Stock-based compensation
|
|
|
10,321
|
|
|
|
|
|
|
|
10,321
|
|
|||||||||||||
Tax benefit from stock plans
|
|
|
55
|
|
|
|
|
|
|
|
55
|
|
|||||||||||||
Contribution of noncontrolling interest
|
|
|
19
|
|
|
|
|
|
10
|
|
29
|
|
|||||||||||||
Reclassification of share-based liability awards
|
|
|
3,035
|
|
|
|
|
|
|
3,035
|
|
||||||||||||||
Balance, February 29, 2016
|
129,060,664
|
|
$
|
1,290
|
|
$
|
351,653
|
|
$
|
(131,011
|
)
|
$
|
1,381,294
|
|
(14,524,929
|
)
|
$
|
(254,587
|
)
|
$
|
159
|
|
$
|
1,348,798
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
Common Stock
|
Additional
|
Accumulated
Other |
|
Treasury Stock
|
Non-
|
|
||||||||||||||||||
(in thousands, except share data)
|
Number of
Shares |
Amount
|
Paid-In
Capital |
Comprehensive
Loss |
Retained
Earnings |
Number of
Shares |
Amount
|
controlling
Interests |
Total
|
||||||||||||||||
Balance, September 1, 2016
|
129,060,664
|
|
$
|
1,290
|
|
$
|
358,745
|
|
$
|
(112,914
|
)
|
$
|
1,372,988
|
|
(14,425,068
|
)
|
$
|
(252,837
|
)
|
$
|
159
|
|
$
|
1,367,431
|
|
Net earnings
|
|
|
|
|
36,607
|
|
|
|
|
36,607
|
|
||||||||||||||
Other comprehensive loss
|
|
|
|
(12,076
|
)
|
|
|
|
|
(12,076
|
)
|
||||||||||||||
Cash dividends ($0.24 per share)
|
|
|
|
|
(27,726
|
)
|
|
|
|
(27,726
|
)
|
||||||||||||||
Issuance of stock under incentive and purchase plans, net of forfeitures
|
|
|
(26,255
|
)
|
|
|
1,143,176
|
|
20,498
|
|
|
(5,757
|
)
|
||||||||||||
Stock-based compensation
|
|
|
7,187
|
|
|
|
|
|
|
7,187
|
|
||||||||||||||
Contribution of noncontrolling interest
|
|
|
|
|
|
|
|
|
13
|
|
13
|
|
|||||||||||||
Reclassification of share-based liability awards
|
|
|
1,780
|
|
|
|
|
|
|
1,780
|
|
||||||||||||||
Reclassification of share-based equity awards
|
|
|
(5,439
|
)
|
|
|
|
|
|
(5,439
|
)
|
||||||||||||||
Balance, February 28, 2017
|
129,060,664
|
|
$
|
1,290
|
|
$
|
336,018
|
|
$
|
(124,990
|
)
|
$
|
1,381,869
|
|
(13,281,892
|
)
|
$
|
(232,339
|
)
|
$
|
172
|
|
$
|
1,362,020
|
|
|
|
Three Months Ended February 28, 2017
|
||||||||||||||
(in thousands)
|
|
Foreign Currency Translation
|
|
Unrealized Gain (Loss) on Derivatives
|
|
Defined Benefit Obligation
|
|
Total AOCI
|
||||||||
Balance, November 30, 2016
|
|
$
|
(133,786
|
)
|
|
$
|
2,128
|
|
|
$
|
(2,854
|
)
|
|
$
|
(134,512
|
)
|
Other comprehensive income before reclassifications
|
|
9,551
|
|
|
310
|
|
|
—
|
|
|
9,861
|
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
(330
|
)
|
|
(9
|
)
|
|
(339
|
)
|
||||
Net other comprehensive income (loss)
|
|
9,551
|
|
|
(20
|
)
|
|
(9
|
)
|
|
9,522
|
|
||||
Balance, February 28, 2017
|
|
$
|
(124,235
|
)
|
|
$
|
2,108
|
|
|
$
|
(2,863
|
)
|
|
$
|
(124,990
|
)
|
|
|
Six Months Ended February 28, 2017
|
||||||||||||||
(in thousands)
|
|
Foreign Currency Translation
|
|
Unrealized Gain (Loss) on Derivatives
|
|
Defined Benefit Obligation
|
|
Total AOCI
|
||||||||
Balance, August 31, 2016
|
|
$
|
(112,255
|
)
|
|
$
|
2,186
|
|
|
$
|
(2,845
|
)
|
|
$
|
(112,914
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(11,980
|
)
|
|
442
|
|
|
—
|
|
|
(11,538
|
)
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
(520
|
)
|
|
(18
|
)
|
|
(538
|
)
|
||||
Net other comprehensive loss
|
|
(11,980
|
)
|
|
(78
|
)
|
|
(18
|
)
|
|
(12,076
|
)
|
||||
Balance, February 28, 2017
|
|
$
|
(124,235
|
)
|
|
$
|
2,108
|
|
|
$
|
(2,863
|
)
|
|
$
|
(124,990
|
)
|
|
|
Three Months Ended February 29, 2016
|
||||||||||||||
(in thousands)
|
|
Foreign Currency Translation
|
|
Unrealized Gain (Loss) on Derivatives
|
|
Defined Benefit Obligation
|
|
Total AOCI
|
||||||||
Balance, November 30, 2015
|
|
$
|
(135,076
|
)
|
|
$
|
2,178
|
|
|
$
|
(2,760
|
)
|
|
$
|
(135,658
|
)
|
Other comprehensive income before reclassifications
|
|
4,211
|
|
|
494
|
|
|
—
|
|
|
4,705
|
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
(56
|
)
|
|
(2
|
)
|
|
(58
|
)
|
||||
Net other comprehensive income (loss)
|
|
4,211
|
|
|
438
|
|
|
(2
|
)
|
|
4,647
|
|
||||
Balance, February 29, 2016
|
|
$
|
(130,865
|
)
|
|
$
|
2,616
|
|
|
$
|
(2,762
|
)
|
|
$
|
(131,011
|
)
|
|
|
Six Months Ended February 29, 2016
|
||||||||||||||
(in thousands)
|
|
Foreign Currency Translation
|
|
Unrealized Gain (Loss) on Derivatives
|
|
Defined Benefit Obligation
|
|
Total AOCI
|
||||||||
Balance, August 31, 2015
|
|
$
|
(113,081
|
)
|
|
$
|
2,305
|
|
|
$
|
(2,759
|
)
|
|
$
|
(113,535
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(17,784
|
)
|
|
485
|
|
|
—
|
|
|
(17,299
|
)
|
||||
Amounts reclassified from AOCI
|
|
—
|
|
|
(174
|
)
|
|
(3
|
)
|
|
(177
|
)
|
||||
Net other comprehensive income (loss)
|
|
(17,784
|
)
|
|
311
|
|
|
(3
|
)
|
|
(17,476
|
)
|
||||
Balance, February 29, 2016
|
|
$
|
(130,865
|
)
|
|
$
|
2,616
|
|
|
$
|
(2,762
|
)
|
|
$
|
(131,011
|
)
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Components of AOCI (in thousands)
|
|
Location
|
|
February 28,
2017 |
|
February 29,
2016 |
|
February 28,
2017 |
|
February 29,
2016 |
||||||||
Unrealized gain (loss) on derivatives:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Commodity
|
|
Cost of goods sold
|
|
$
|
(33
|
)
|
|
$
|
(59
|
)
|
|
$
|
(125
|
)
|
|
$
|
(110
|
)
|
Foreign exchange
|
|
Net sales
|
|
329
|
|
|
(450
|
)
|
|
244
|
|
|
(393
|
)
|
||||
Foreign exchange
|
|
Cost of goods sold
|
|
(172
|
)
|
|
426
|
|
|
(44
|
)
|
|
418
|
|
||||
Foreign exchange
|
|
SG&A expenses
|
|
138
|
|
|
35
|
|
|
290
|
|
|
70
|
|
||||
Interest rate
|
|
Interest expense
|
|
132
|
|
|
132
|
|
|
266
|
|
|
266
|
|
||||
|
|
|
|
394
|
|
|
84
|
|
|
631
|
|
|
251
|
|
||||
Income tax effect
|
|
Income taxes
|
|
(64
|
)
|
|
(28
|
)
|
|
(111
|
)
|
|
(77
|
)
|
||||
Net of income taxes
|
|
|
|
$
|
330
|
|
|
$
|
56
|
|
|
$
|
520
|
|
|
$
|
174
|
|
Defined benefit obligation:
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of prior services
|
|
SG&A expenses
|
|
$
|
11
|
|
|
$
|
2
|
|
|
$
|
22
|
|
|
$
|
4
|
|
Income tax effect
|
|
Income taxes
|
|
(2
|
)
|
|
—
|
|
|
(4
|
)
|
|
(1
|
)
|
||||
Net of income taxes
|
|
|
|
$
|
9
|
|
|
$
|
2
|
|
|
$
|
18
|
|
|
$
|
3
|
|
|
|
Three Months Ended February 28, 2017
|
||||||||||
(in thousands)
|
|
Total
|
|
U.S.
|
|
Poland
|
||||||
Beginning balance
|
|
$
|
261,521
|
|
|
$
|
215,717
|
|
|
$
|
45,804
|
|
Transfers of accounts receivable
|
|
643,478
|
|
|
561,010
|
|
|
82,468
|
|
|||
Collections
|
|
(592,553
|
)
|
|
(518,008
|
)
|
|
(74,545
|
)
|
|||
Ending balance
|
|
$
|
312,446
|
|
|
$
|
258,719
|
|
|
$
|
53,727
|
|
|
|
Six Months Ended February 28, 2017
|
||||||||||||||
(in thousands)
|
|
Total
|
|
U.S.
|
|
Australia*
|
|
Poland
|
||||||||
Beginning balance
|
|
$
|
289,748
|
|
|
$
|
212,762
|
|
|
$
|
26,662
|
|
|
$
|
50,324
|
|
Transfers of accounts receivable
|
|
1,200,442
|
|
|
1,031,155
|
|
|
16,914
|
|
|
152,373
|
|
||||
Collections
|
|
(1,143,827
|
)
|
|
(985,198
|
)
|
|
(9,659
|
)
|
|
(148,970
|
)
|
||||
Program termination
|
|
(33,917
|
)
|
|
—
|
|
|
(33,917
|
)
|
|
—
|
|
||||
Ending balance
|
|
$
|
312,446
|
|
|
$
|
258,719
|
|
|
$
|
—
|
|
|
$
|
53,727
|
|
|
|
Three Months Ended February 29, 2016
|
||||||||||||||
(in thousands)
|
|
Total
|
|
U.S.
|
|
Australia**
|
|
Poland
|
||||||||
Beginning balance
|
|
$
|
228,862
|
|
|
$
|
196,130
|
|
|
$
|
15,286
|
|
|
$
|
17,446
|
|
Transfers of accounts receivable
|
|
537,774
|
|
|
432,900
|
|
|
37,256
|
|
|
67,618
|
|
||||
Collections
|
|
(534,762
|
)
|
|
(435,995
|
)
|
|
(39,159
|
)
|
|
(59,608
|
)
|
||||
Ending balance
|
|
$
|
231,874
|
|
|
$
|
193,035
|
|
|
$
|
13,383
|
|
|
$
|
25,456
|
|
|
|
Six Months Ended February 29, 2016
|
||||||||||||||
(in thousands)
|
|
Total
|
|
U.S.
|
|
Australia***
|
|
Poland
|
||||||||
Beginning balance
|
|
$
|
339,547
|
|
|
$
|
269,778
|
|
|
$
|
18,038
|
|
|
$
|
51,731
|
|
Transfers of accounts receivable
|
|
1,126,193
|
|
|
919,423
|
|
|
83,330
|
|
|
123,440
|
|
||||
Collections
|
|
(1,233,866
|
)
|
|
(996,166
|
)
|
|
(87,985
|
)
|
|
(149,715
|
)
|
||||
Ending balance
|
|
$
|
231,874
|
|
|
$
|
193,035
|
|
|
$
|
13,383
|
|
|
$
|
25,456
|
|
|
|
|
Americas
|
|
International
|
|
|
||||||||||||||||||
(in thousands)
|
|
Recycling
|
|
Mills
|
|
Fabrication
|
|
Mill
|
|
Marketing and Distribution
|
|
Consolidated
|
|||||||||||||
Goodwill, gross
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at August 31, 2016
|
|
$
|
9,751
|
|
|
$
|
4,970
|
|
|
$
|
57,637
|
|
|
$
|
2,432
|
|
|
$
|
1,982
|
|
|
$
|
76,772
|
|
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
—
|
|
|
306
|
|
||||||
|
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(98
|
)
|
|
(58
|
)
|
|
(156
|
)
|
||||||
Balance at February 28, 2017
|
|
$
|
9,751
|
|
|
$
|
4,970
|
|
|
$
|
57,943
|
|
|
$
|
2,334
|
|
|
$
|
1,924
|
|
|
$
|
76,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Accumulated impairment losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at August 31, 2016
|
|
$
|
(9,751
|
)
|
|
$
|
—
|
|
|
$
|
(493
|
)
|
|
$
|
(155
|
)
|
|
$
|
—
|
|
|
$
|
(10,399
|
)
|
|
|
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
7
|
|
||||||
Balance at February 28, 2017
|
|
$
|
(9,751
|
)
|
|
$
|
—
|
|
|
$
|
(493
|
)
|
|
$
|
(148
|
)
|
|
$
|
—
|
|
|
$
|
(10,392
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Goodwill, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance at August 31, 2016
|
|
$
|
—
|
|
|
$
|
4,970
|
|
|
$
|
57,144
|
|
|
$
|
2,277
|
|
|
$
|
1,982
|
|
|
$
|
66,373
|
|
|
|
Acquisitions
|
|
—
|
|
|
—
|
|
|
306
|
|
|
—
|
|
|
—
|
|
|
306
|
|
||||||
|
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
(58
|
)
|
|
(149
|
)
|
||||||
Balance at February 28, 2017
|
|
$
|
—
|
|
|
$
|
4,970
|
|
|
$
|
57,450
|
|
|
$
|
2,186
|
|
|
$
|
1,924
|
|
|
$
|
66,530
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
1
|
|
|
$
|
9,953
|
|
|
$
|
(22
|
)
|
|
$
|
21,507
|
|
Earnings (loss) from discontinued operations before income taxes (benefit)
|
|
726
|
|
|
(446
|
)
|
|
(191
|
)
|
|
(1,018
|
)
|
(in thousands)
|
|
Weighted Average
Interest Rate as of February 28, 2017 |
|
February 28, 2017
|
|
August 31, 2016
|
||||
2023 Notes
|
|
4.875%
|
|
$
|
330,000
|
|
|
$
|
330,000
|
|
2018 Notes
|
|
6.40%
|
|
406,562
|
|
|
408,874
|
|
||
2017 Notes
|
|
5.74%
|
|
301,115
|
|
|
302,601
|
|
||
Other, including equipment notes
|
|
|
|
30,356
|
|
|
34,166
|
|
||
Total debt
|
|
|
|
1,068,033
|
|
|
1,075,641
|
|
||
Less debt issuance costs
|
|
|
|
3,696
|
|
|
4,224
|
|
||
Total amounts outstanding
|
|
|
|
1,064,337
|
|
|
1,071,417
|
|
||
Less current maturities
|
|
|
|
312,200
|
|
|
313,469
|
|
||
Long-term debt
|
|
|
|
$
|
752,137
|
|
|
$
|
757,948
|
|
Commodity
|
|
Long/Short
|
|
Total
|
||
Aluminum
|
|
Long
|
|
2,630
|
|
MT
|
Aluminum
|
|
Short
|
|
325
|
|
MT
|
Copper
|
|
Long
|
|
419
|
|
MT
|
Copper
|
|
Short
|
|
4,808
|
|
MT
|
Zinc
|
|
Long
|
|
15
|
|
MT
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
Derivatives Not Designated as Hedging Instruments (in thousands)
|
|
Location
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Commodity
|
|
Cost of goods sold
|
|
$
|
(146
|
)
|
|
$
|
(224
|
)
|
|
$
|
(4,775
|
)
|
|
$
|
1,948
|
|
Foreign exchange
|
|
Net sales
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Foreign exchange
|
|
Cost of goods sold
|
|
(25
|
)
|
|
31
|
|
|
(33
|
)
|
|
81
|
|
||||
Foreign exchange
|
|
SG&A expenses
|
|
(678
|
)
|
|
10,495
|
|
|
3,371
|
|
|
15,714
|
|
||||
Gain (loss) before income taxes
|
|
|
|
$
|
(849
|
)
|
|
$
|
10,298
|
|
|
$
|
(1,437
|
)
|
|
$
|
17,739
|
|
Derivatives Designated as Fair Value Hedging Instruments (in thousands)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Location
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
|||||||||
Foreign exchange
|
|
Net sales
|
|
$
|
66
|
|
|
$
|
(61
|
)
|
|
$
|
44
|
|
|
$
|
83
|
|
Foreign exchange
|
|
Cost of goods sold
|
|
(1,693
|
)
|
|
183
|
|
|
(607
|
)
|
|
(811
|
)
|
||||
Gain (loss) before income taxes
|
|
|
|
$
|
(1,627
|
)
|
|
$
|
122
|
|
|
$
|
(563
|
)
|
|
$
|
(728
|
)
|
Hedged Items Designated as Fair Value Hedging Instruments (in thousands)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Location
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
|||||||||
Foreign exchange
|
|
Net sales
|
|
$
|
(66
|
)
|
|
$
|
62
|
|
|
$
|
(44
|
)
|
|
$
|
(83
|
)
|
Foreign exchange
|
|
Cost of goods sold
|
|
1,693
|
|
|
(183
|
)
|
|
607
|
|
|
811
|
|
||||
Gain (loss) before income taxes
|
|
|
|
$
|
1,627
|
|
|
$
|
(121
|
)
|
|
$
|
563
|
|
|
$
|
728
|
|
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
|||||||||
Commodity
|
|
$
|
118
|
|
|
$
|
253
|
|
|
$
|
217
|
|
|
$
|
(224
|
)
|
Foreign exchange
|
|
192
|
|
|
241
|
|
|
225
|
|
|
709
|
|
||||
Gain, net of income taxes
|
|
$
|
310
|
|
|
$
|
494
|
|
|
$
|
442
|
|
|
$
|
485
|
|
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss) (in thousands)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
Location
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
|||||||||
Commodity
|
|
Cost of goods sold
|
|
$
|
(33
|
)
|
|
$
|
(59
|
)
|
|
$
|
(125
|
)
|
|
$
|
(110
|
)
|
Foreign exchange
|
|
Net sales
|
|
329
|
|
|
(450
|
)
|
|
244
|
|
|
(393
|
)
|
||||
Foreign exchange
|
|
Cost of goods sold
|
|
(172
|
)
|
|
426
|
|
|
(44
|
)
|
|
418
|
|
||||
Foreign exchange
|
|
SG&A expenses
|
|
138
|
|
|
35
|
|
|
290
|
|
|
70
|
|
||||
Interest rate
|
|
Interest expense
|
|
132
|
|
|
132
|
|
|
266
|
|
|
266
|
|
||||
Gain before income taxes
|
|
|
|
394
|
|
|
84
|
|
|
631
|
|
|
251
|
|
||||
Income taxes
|
|
Income taxes
|
|
(64
|
)
|
|
(28
|
)
|
|
(111
|
)
|
|
(77
|
)
|
||||
Gain, net of income taxes
|
|
|
|
$
|
330
|
|
|
$
|
56
|
|
|
$
|
520
|
|
|
$
|
174
|
|
Derivative Assets (in thousands)
|
|
February 28, 2017
|
|
August 31, 2016
|
||||
Commodity — designated for hedge accounting
|
|
$
|
170
|
|
|
$
|
4
|
|
Commodity — not designated for hedge accounting
|
|
277
|
|
|
584
|
|
||
Foreign exchange — designated for hedge accounting
|
|
631
|
|
|
1,398
|
|
||
Foreign exchange — not designated for hedge accounting
|
|
1,169
|
|
|
750
|
|
||
Derivative assets (other current assets)*
|
|
$
|
2,247
|
|
|
$
|
2,736
|
|
Derivative Liabilities (in thousands)
|
|
February 28, 2017
|
|
August 31, 2016
|
||||
Commodity — designated for hedge accounting
|
|
$
|
—
|
|
|
$
|
5
|
|
Commodity — not designated for hedge accounting
|
|
595
|
|
|
117
|
|
||
Foreign exchange — designated for hedge accounting
|
|
718
|
|
|
902
|
|
||
Foreign exchange — not designated for hedge accounting
|
|
777
|
|
|
1,161
|
|
||
Derivative liabilities (accrued expenses and other payables)*
|
|
$
|
2,090
|
|
|
$
|
2,185
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market investments
(1)
|
|
$
|
290,329
|
|
|
$
|
290,329
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity derivative assets
(2)
|
|
447
|
|
|
277
|
|
|
170
|
|
|
—
|
|
||||
Foreign exchange derivative assets
(2)
|
|
1,800
|
|
|
—
|
|
|
1,800
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivative liabilities
(2)
|
|
595
|
|
|
595
|
|
|
—
|
|
|
—
|
|
||||
Foreign exchange derivative liabilities
(2)
|
|
1,495
|
|
|
—
|
|
|
1,495
|
|
|
—
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
(in thousands)
|
|
August 31, 2016
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Money market investments
(1)
|
|
$
|
278,759
|
|
|
$
|
278,759
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Commodity derivative assets
(2)
|
|
588
|
|
|
584
|
|
|
4
|
|
|
—
|
|
||||
Foreign exchange derivative assets
(2)
|
|
2,148
|
|
|
—
|
|
|
2,148
|
|
|
—
|
|
||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Commodity derivative liabilities
(2)
|
|
122
|
|
|
117
|
|
|
5
|
|
|
—
|
|
||||
Foreign exchange derivative liabilities
(2)
|
|
2,063
|
|
|
—
|
|
|
2,063
|
|
|
—
|
|
|
|
|
|
February 28, 2017
|
|
August 31, 2016
|
||||||||||||
(in thousands)
|
|
Fair Value Hierarchy
|
|
Carrying Value
|
|
Fair Value
|
|
Carrying Value
|
|
Fair Value
|
||||||||
2023 Notes
(1)
|
|
Level 2
|
|
$
|
330,000
|
|
|
$
|
335,775
|
|
|
$
|
330,000
|
|
|
$
|
332,010
|
|
2018 Notes
(1)
|
|
Level 2
|
|
406,562
|
|
|
430,304
|
|
|
408,874
|
|
|
432,303
|
|
||||
2017 Notes
(1)
|
|
Level 2
|
|
301,115
|
|
|
305,250
|
|
|
302,601
|
|
|
311,250
|
|
i.
|
the proportion of the Company's global income from operations in jurisdictions with lower statutory tax rates than the U.S., including Poland, which has a statutory income tax rate of
19%
,
|
ii.
|
a permanent tax benefit under Section 199 of the Internal Revenue Code related to domestic production activity,
|
iii.
|
a non-taxable gain on assets related to the Company's non-qualified Benefits Restoration Plan, and
|
iv.
|
losses from operations in certain jurisdictions in which the Company maintains a valuation allowance, thus providing no benefit for such losses.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands, except share data)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Earnings from continuing operations attributable to CMC
|
|
$
|
29,639
|
|
|
$
|
10,849
|
|
|
$
|
36,813
|
|
|
$
|
36,482
|
|
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding for basic earnings per share
|
|
115,736,369
|
|
|
115,429,550
|
|
|
115,415,662
|
|
|
115,725,896
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share attributable to CMC
|
|
$
|
0.25
|
|
|
$
|
0.09
|
|
|
$
|
0.32
|
|
|
$
|
0.32
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
||||||||
Shares outstanding for basic earnings per share
|
|
115,736,369
|
|
|
115,429,550
|
|
|
115,415,662
|
|
|
115,725,896
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Stock-based incentive/purchase plans
|
|
1,383,839
|
|
|
1,078,041
|
|
|
1,592,296
|
|
|
1,276,926
|
|
||||
Shares outstanding for diluted earnings per share
|
|
117,120,208
|
|
|
116,507,591
|
|
|
117,007,958
|
|
|
117,002,822
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share attributable to CMC
|
|
$
|
0.25
|
|
|
$
|
0.09
|
|
|
$
|
0.31
|
|
|
$
|
0.31
|
|
|
|
|
|
|
|
|
|
|
||||||||
Anti-dilutive shares not included above
|
|
—
|
|
|
714,342
|
|
|
—
|
|
|
714,342
|
|
Twelve Months Ending February 28,
|
|
(in thousands)
|
||
2018
|
|
$
|
749,005
|
|
2019
|
|
105,952
|
|
|
2020
|
|
55,720
|
|
|
2021
|
|
39,586
|
|
|
2022
|
|
3,935
|
|
|
Thereafter
|
|
6,989
|
|
|
Total
|
|
$
|
961,187
|
|
|
|
Three Months Ended February 28, 2017
|
||||||||||||||||||||||||||||||
|
|
Americas
|
|
International
|
|
|
|
|
|
|
||||||||||||||||||||||
(in thousands)
|
|
Recycling
|
|
Mills
|
|
Fabrication
|
|
Mill
|
|
Marketing and Distribution
|
|
Corporate
|
|
Eliminations
|
|
Continuing Operations
|
||||||||||||||||
Net sales-unaffiliated customers
|
|
$
|
188,502
|
|
|
$
|
220,607
|
|
|
$
|
301,382
|
|
|
$
|
134,125
|
|
|
$
|
301,163
|
|
|
$
|
3,842
|
|
|
$
|
—
|
|
|
$
|
1,149,621
|
|
Intersegment sales
|
|
34,826
|
|
|
155,986
|
|
|
2,444
|
|
|
180
|
|
|
1,132
|
|
|
—
|
|
|
(194,568
|
)
|
|
—
|
|
||||||||
Net sales
|
|
223,328
|
|
|
376,593
|
|
|
303,826
|
|
|
134,305
|
|
|
302,295
|
|
|
3,842
|
|
|
(194,568
|
)
|
|
1,149,621
|
|
||||||||
Adjusted operating profit (loss) from continuing operations
|
|
7,766
|
|
|
51,319
|
|
|
506
|
|
|
9,430
|
|
|
6,143
|
|
|
(22,317
|
)
|
|
(576
|
)
|
|
52,271
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Six Months Ended February 28, 2017
|
||||||||||||||||||||||||||||||
|
|
Americas
|
|
International
|
|
|
|
|
|
|
||||||||||||||||||||||
(in thousands)
|
|
Recycling
|
|
Mills
|
|
Fabrication
|
|
Mill
|
|
Marketing and Distribution
|
|
Corporate
|
|
Eliminations
|
|
Continuing Operations
|
||||||||||||||||
Net sales-unaffiliated customers
|
|
$
|
342,864
|
|
|
$
|
423,938
|
|
|
$
|
636,659
|
|
|
$
|
268,315
|
|
|
$
|
547,316
|
|
|
$
|
5,592
|
|
|
$
|
—
|
|
|
$
|
2,224,684
|
|
Intersegment sales
|
|
57,172
|
|
|
299,820
|
|
|
5,567
|
|
|
391
|
|
|
3,139
|
|
|
—
|
|
|
(366,089
|
)
|
|
—
|
|
||||||||
Net sales
|
|
400,036
|
|
|
723,758
|
|
|
642,226
|
|
|
268,706
|
|
|
550,455
|
|
|
5,592
|
|
|
(366,089
|
)
|
|
2,224,684
|
|
||||||||
Adjusted operating profit (loss) from continuing operations
|
|
2,668
|
|
|
88,268
|
|
|
7,217
|
|
|
19,403
|
|
|
5,177
|
|
|
(46,330
|
)
|
|
(780
|
)
|
|
75,623
|
|
||||||||
Total assets as of February 28, 2017*
|
|
214,630
|
|
|
865,428
|
|
|
657,917
|
|
|
389,184
|
|
|
591,769
|
|
|
935,452
|
|
|
(523,506
|
)
|
|
3,130,874
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Three Months Ended February 29, 2016
|
||||||||||||||||||||||||||||||
|
|
Americas
|
|
International
|
|
|
|
|
|
|
||||||||||||||||||||||
(in thousands)
|
|
Recycling
|
|
Mills
|
|
Fabrication
|
|
Mill
|
|
Marketing and Distribution
|
|
Corporate
|
|
Eliminations
|
|
Continuing Operations
|
||||||||||||||||
Net sales-unaffiliated customers
|
|
$
|
119,641
|
|
|
$
|
189,549
|
|
|
$
|
333,961
|
|
|
$
|
107,458
|
|
|
$
|
271,955
|
|
|
$
|
(2,867
|
)
|
|
$
|
—
|
|
|
$
|
1,019,697
|
|
Intersegment sales
|
|
28,705
|
|
|
146,880
|
|
|
2,183
|
|
|
—
|
|
|
4,921
|
|
|
—
|
|
|
(182,689
|
)
|
|
—
|
|
||||||||
Net sales
|
|
148,346
|
|
|
336,429
|
|
|
336,144
|
|
|
107,458
|
|
|
276,876
|
|
|
(2,867
|
)
|
|
(182,689
|
)
|
|
1,019,697
|
|
||||||||
Adjusted operating profit (loss) from continuing operations
|
|
(7,645
|
)
|
|
50,699
|
|
|
14,825
|
|
|
1,951
|
|
|
(2,293
|
)
|
|
(28,801
|
)
|
|
1,232
|
|
|
29,968
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
Six Months Ended February 29, 2016
|
||||||||||||||||||||||||||||||
|
|
Americas
|
|
International
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Recycling
|
|
Mills
|
|
Fabrication
|
|
Mill
|
|
Marketing and Distribution
|
|
Corporate
|
|
Eliminations
|
|
Continuing Operations
|
||||||||||||||||
Net sales-unaffiliated customers
|
|
$
|
274,477
|
|
|
$
|
407,190
|
|
|
$
|
713,442
|
|
|
$
|
227,906
|
|
|
$
|
552,017
|
|
|
$
|
(476
|
)
|
|
$
|
—
|
|
|
$
|
2,174,556
|
|
Intersegment sales
|
|
53,076
|
|
|
313,771
|
|
|
5,016
|
|
|
—
|
|
|
7,896
|
|
|
—
|
|
|
(379,759
|
)
|
|
—
|
|
||||||||
Net sales
|
|
327,553
|
|
|
720,961
|
|
|
718,458
|
|
|
227,906
|
|
|
559,913
|
|
|
(476
|
)
|
|
(379,759
|
)
|
|
2,174,556
|
|
||||||||
Adjusted operating profit (loss) from continuing operations
|
|
(14,193
|
)
|
|
109,763
|
|
|
36,170
|
|
|
4,722
|
|
|
(4,462
|
)
|
|
(46,873
|
)
|
|
902
|
|
|
86,029
|
|
||||||||
Total assets as of August 31, 2016*
|
|
188,873
|
|
|
798,481
|
|
|
659,165
|
|
|
372,492
|
|
|
564,068
|
|
|
1,034,053
|
|
|
(493,050
|
)
|
|
3,124,082
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Earnings from continuing operations
|
|
$
|
29,639
|
|
|
$
|
10,849
|
|
|
$
|
36,813
|
|
|
$
|
36,482
|
|
Income taxes
|
|
9,990
|
|
|
2,064
|
|
|
12,643
|
|
|
13,836
|
|
||||
Interest expense
|
|
12,442
|
|
|
16,625
|
|
|
25,740
|
|
|
34,929
|
|
||||
Discounts on sales of accounts receivable
|
|
200
|
|
|
430
|
|
|
427
|
|
|
782
|
|
||||
Adjusted operating profit from continuing operations
|
|
$
|
52,271
|
|
|
$
|
29,968
|
|
|
$
|
75,623
|
|
|
$
|
86,029
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands, except per share data)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales*
|
|
$
|
1,149,621
|
|
|
$
|
1,019,697
|
|
|
$
|
2,224,684
|
|
|
$
|
2,174,556
|
|
Earnings from continuing operations
|
|
29,639
|
|
|
10,849
|
|
|
36,813
|
|
|
36,482
|
|
||||
Adjusted operating profit from continuing operations+
|
|
52,271
|
|
|
29,968
|
|
|
75,623
|
|
|
86,029
|
|
||||
Adjusted EBITDA from continuing operations+
|
|
82,661
|
|
|
61,088
|
|
|
136,460
|
|
|
148,788
|
|
||||
Diluted net earnings per share attributable to CMC
|
|
0.26
|
|
|
0.09
|
|
|
0.31
|
|
|
0.30
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Earnings from continuing operations
|
|
$
|
29,639
|
|
|
$
|
10,849
|
|
|
$
|
36,813
|
|
|
$
|
36,482
|
|
Income taxes
|
|
9,990
|
|
|
2,064
|
|
|
12,643
|
|
|
13,836
|
|
||||
Interest expense
|
|
12,442
|
|
|
16,625
|
|
|
25,740
|
|
|
34,929
|
|
||||
Discounts on sales of accounts receivable
|
|
200
|
|
|
430
|
|
|
427
|
|
|
782
|
|
||||
Adjusted operating profit from continuing operations
|
|
$
|
52,271
|
|
|
$
|
29,968
|
|
|
$
|
75,623
|
|
|
$
|
86,029
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Earnings from continuing operations
|
|
$
|
29,639
|
|
|
$
|
10,849
|
|
|
$
|
36,813
|
|
|
$
|
36,482
|
|
Interest expense
|
|
12,442
|
|
|
16,625
|
|
|
25,740
|
|
|
34,929
|
|
||||
Income taxes
|
|
9,990
|
|
|
2,064
|
|
|
12,643
|
|
|
13,836
|
|
||||
Depreciation and amortization
|
|
30,499
|
|
|
31,550
|
|
|
60,785
|
|
|
63,541
|
|
||||
Impairment charges
|
|
91
|
|
|
—
|
|
|
479
|
|
|
—
|
|
||||
Adjusted EBITDA from continuing operations
|
|
$
|
82,661
|
|
|
$
|
61,088
|
|
|
$
|
136,460
|
|
|
$
|
148,788
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
223,328
|
|
|
$
|
148,346
|
|
|
$
|
400,036
|
|
|
$
|
327,553
|
|
Adjusted operating profit (loss)
|
|
7,766
|
|
|
(7,645
|
)
|
|
2,668
|
|
|
(14,193
|
)
|
Short tons shipped (in thousands)
|
|
|
|
|
|
|
|
|
||||
Ferrous tons shipped
|
|
421
|
|
|
379
|
|
|
826
|
|
|
768
|
|
Nonferrous tons shipped
|
|
53
|
|
|
48
|
|
|
102
|
|
|
100
|
|
Total tons shipped
|
|
474
|
|
|
427
|
|
|
928
|
|
|
868
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
376,593
|
|
|
$
|
336,429
|
|
|
$
|
723,758
|
|
|
$
|
720,961
|
|
Adjusted operating profit
|
|
51,319
|
|
|
50,699
|
|
|
88,268
|
|
|
109,763
|
|
Average price (per short ton)
|
|
|
|
|
|
|
|
|
||||||||
Finished goods selling price
|
|
$
|
534
|
|
|
$
|
521
|
|
|
$
|
521
|
|
|
$
|
545
|
|
Total sales
|
|
524
|
|
|
510
|
|
|
511
|
|
|
533
|
|
||||
Cost of ferrous scrap utilized
|
|
245
|
|
|
179
|
|
|
223
|
|
|
188
|
|
||||
Metal margin
|
|
279
|
|
|
331
|
|
|
288
|
|
|
345
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
303,826
|
|
|
$
|
336,144
|
|
|
$
|
642,226
|
|
|
$
|
718,458
|
|
Adjusted operating profit
|
|
506
|
|
|
14,825
|
|
|
7,217
|
|
|
36,170
|
|
Average selling price (excluding stock and buyout sales) (per short ton)
|
|
|
|
|
|
|
|
|
||||||||
Rebar
|
|
$
|
723
|
|
|
$
|
801
|
|
|
$
|
736
|
|
|
$
|
832
|
|
Structural
|
|
2,225
|
|
|
2,281
|
|
|
2,188
|
|
|
2,315
|
|
||||
Post
|
|
835
|
|
|
860
|
|
|
834
|
|
|
863
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
134,305
|
|
|
$
|
107,458
|
|
|
$
|
268,706
|
|
|
$
|
227,906
|
|
Adjusted operating profit
|
|
9,430
|
|
|
1,951
|
|
|
19,403
|
|
|
4,722
|
|
Average price (per short ton)
|
|
|
|
|
|
|
|
|
||||||||
Total sales
|
|
$
|
402
|
|
|
$
|
363
|
|
|
$
|
399
|
|
|
$
|
385
|
|
Cost of ferrous scrap utilized
|
|
229
|
|
|
178
|
|
|
215
|
|
|
192
|
|
||||
Metal margin
|
|
173
|
|
|
185
|
|
|
184
|
|
|
193
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
(in thousands)
|
|
February 28, 2017
|
|
February 29, 2016
|
|
February 28, 2017
|
|
February 29, 2016
|
||||||||
Net sales
|
|
$
|
302,295
|
|
|
$
|
276,876
|
|
|
$
|
550,455
|
|
|
$
|
559,913
|
|
Adjusted operating profit (loss)
|
|
6,143
|
|
|
(2,293
|
)
|
|
5,177
|
|
|
(4,462
|
)
|
(in thousands)
|
|
Total Facility
|
|
Availability
|
||||
Cash and cash equivalents
|
|
$
|
395,546
|
|
|
$
|
395,546
|
|
Revolving credit facility
|
|
350,000
|
|
|
346,983
|
|
||
U.S. receivables sale facility
|
|
200,000
|
|
|
140,347
|
|
||
International accounts receivable sales facilities
|
|
49,117
|
|
|
45,950
|
|
||
Bank credit facilities — uncommitted
|
|
42,977
|
|
|
42,183
|
|
||
Notes due from 2017 to 2023
|
|
1,029,818
|
|
|
*
|
|
||
Equipment notes
|
|
30,356
|
|
|
*
|
|
•
|
conditions, including the ongoing recovery from the last recession, continued sovereign debt problems in the Euro-zone and construction activity or lack thereof, and their impact in a highly cyclical industry;
|
•
|
rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices;
|
•
|
excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing;
|
•
|
compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions;
|
•
|
involvement in various environmental matters that may result in fines, penalties or judgments;
|
•
|
potential limitations in our or our customers' ability to access credit and non-compliance by our customers with our existing commercial contracts and commitments;
|
•
|
activity in repurchasing shares of our common stock under our repurchase program;
|
•
|
financial covenants and restrictions on the operation of our business contained in agreements governing our debt;
|
•
|
currency fluctuations;
|
•
|
global factors, including political uncertainties and military conflicts;
|
•
|
availability of electricity and natural gas for mill operations;
|
•
|
ability to hire and retain key executives and other employees;
|
•
|
competition from other materials or from competitors that have a lower cost structure or access to greater financial resources;
|
•
|
information technology interruptions and breaches in data security;
|
•
|
ability to make necessary capital expenditures to fund our mills;
|
•
|
availability and pricing of raw materials over which we exert little influence, including scrap metal, energy, insurance and supply prices;
|
•
|
unexpected equipment failures;
|
•
|
losses or limited potential gains due to hedging transactions;
|
•
|
litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks;
|
•
|
risk of injury or death to employees, customers or other visitors to our operations;
|
•
|
increased costs related to health care reform legislation; and
|
•
|
those factors listed under Part I, Item 1A, Risk Factors, included in our Annual Report filed on Form 10-K for the fiscal year ended
August 31, 2016
.
|
Period
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(1)
|
|||||
December 1, 2016 - December 31, 2016
|
|
—
|
|
|
—
|
|
|
—
|
|
|
$
|
27,598,706
|
|
January 1, 2017 - January 31, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,598,706
|
|
|
February 1, 2017 - February 28, 2017
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27,598,706
|
|
|
Total
|
|
—
|
|
|
|
|
—
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(1)
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During the first quarter of fiscal 2015, the Company announced that CMC's Board of Directors had authorized a share repurchase program under which the Company may repurchase up to $100.0 million of shares of CMC common stock. The share repurchase program does not require the Company to purchase any dollar amount or number of shares of CMC common stock and may be modified, suspended, extended or terminated by the Company at any time without prior notice.
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ITEM 6.
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EXHIBITS
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COMMERCIAL METALS COMPANY
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March 28, 2017
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/s/ Mary Lindsey
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Mary Lindsey
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Vice President and Chief Financial Officer
(Duly authorized officer and principal financial officer of the registrant)
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I.
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INTRODUCTION
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II.
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STOCK OPTIONS AND STOCK APPRECIATION RIGHTS
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III.
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STOCK AWARDS
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IV.
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PERFORMANCE AWARDS
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V.
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GENERAL
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COMPANY:
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COMMERCIAL METALS COMPANY
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By:
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Name:
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Title:
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PARTICIPANT:
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Signature
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Name:
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Address:
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(a)
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Notice to the Company shall be addressed and delivered as follows:
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(b)
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Notice to the Participant shall be addressed and delivered as set forth on the signature page.
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COMPANY:
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COMMERCIAL METALS COMPANY
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By:
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Name:
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Title:
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PARTICIPANT:
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Signature
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Name:
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Address:
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(i)
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75% of Units will vest based on ROIC and absolute 3-year EBITDA metrics:
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ROIC Performance Trigger:
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Following the end of the 3-year Performance Period (FY2017-FY2019), the Committee must certify the achievement of positive ROIC or, regardless of the EBITDA performance achieved, none of the Units subject to the EBITDA metric will vest.
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EBITDA Performance Goal:
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Within the first 90 days of
each
of the Company’s fiscal years Performance Period, the Committee shall establish the “Target” EBITDA performance goal for such fiscal year.
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(ii)
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25% of Units will vest based on a 3-year relative Total Stockholder Return (“TSR”) metric:
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Relative TSR Performance Goal:
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The “2017-2019 TSR Percentile Rank vs. Performance Peer Group” shall be measured based on the percentile ranking of the Company’s TSR during the Performance Period compared to the TSR of the Company’s Performance Peer Group during the Performance Period, the result of which will be used to determine the vesting levels of the Units as follows:
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Alcoa, Inc.
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Martin Marietta Materials
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Nucor Corp.
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Jacobs Engineering Group, Inc.
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General Cable Corp/DE
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Weyerhaeuser Co.
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Harsco Corp
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Allegheny Technologies, Inc.
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USG Corp
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Vulcan Materials Co
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Owens-Illinois, Inc.
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United States Steel Corp
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AK Steel Holding Corp
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Schnitzer Steel INDS-CL A
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McDermott International, Inc.
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Eagle Materials, Inc.
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Textron, Inc.
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Fluor Corp
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Steel Dynamics, Inc.
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Granite Construction, Inc.
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Tutor Perini Corp.
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Dycom Industries, Inc.
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1.
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ceases to be a domestically domiciled publicly traded company on a national stock exchange or market system, unless such cessation of such listing is due to a low stock price or low trading volume;
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2.
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has gone private;
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3.
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has reincorporated in a foreign (e.g., non-U.S.) jurisdiction, regardless of whether it is a reporting company in that or another jurisdiction;
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4.
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has been acquired by another company (whether by a peer company or otherwise, but not including internal reorganizations); or
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5.
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has sold all or substantially all of its assets.
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/s/ Joseph Alvarado
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Joseph Alvarado
Chief Executive Officer
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/s/ Mary Lindsey
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Mary Lindsey
Vice President and Chief Financial Officer
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/s/ Joseph Alvarado
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Joseph Alvarado
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Chief Executive Officer
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/s/ Mary Lindsey
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Mary Lindsey
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Vice President and Chief Financial Officer
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