/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
Stelco Holdings Inc. first quarter highlights include:
- Revenue of $665 million for
the quarter, up 57% from Q4 2020
- Operating income of $167
million for the quarter, up 328% from Q4 2020
- Adjusted Net Income* of $155
million and Adjusted Net Income* per share of $1.75, up 243% from Q4 2020
- Shipments* of 675,000 tons for the quarter, up 38% from Q4
2020
- Adjusted EBITDA* of $185
million for the quarter, up 208% from Q4 2020
- Declared quarterly dividend of $0.10 per share payable on May 19, 2021
HAMILTON, ON, May 4, 2021 /CNW/ - Stelco
Holdings Inc. ("Stelco Holdings" or the "Company"),
(TSX: STLC), a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America, today announced strong financial results of the
Company for the three months ended March 31,
2021. Stelco Holdings is the 100% owner of Stelco Inc.
("Stelco"), the operating company.
Selected Financial Information:
|
|
|
|
|
|
(in millions Canadian dollars, except volume, per share and nt figures)
|
Q1 2021
|
Q1 2020
|
Change
|
Q4 2020
|
Change
|
Revenue ($)
|
665
|
445
|
49 %
|
424
|
57 %
|
Operating income ($)
|
167
|
7
|
2286 %
|
39
|
328 %
|
Net income (loss) ($)
|
119
|
(24)
|
NM
|
(47)
|
NM
|
Adjusted net income (loss) ($) *
|
155
|
(26)
|
NM
|
45
|
244 %
|
Net income (loss) per common share (diluted) ($)
|
1.34
|
(0.27)
|
NM
|
(0.53)
|
NM
|
Adjusted net income (loss) per common share (diluted) ($) *
|
1.75
|
(0.29)
|
NM
|
0.51
|
243 %
|
|
|
|
|
|
|
Average selling
price per nt ($) *
|
959
|
705
|
36 %
|
728
|
32 %
|
Shipping volume (in thousands of nt) *
|
675
|
621
|
9 %
|
489
|
38 %
|
|
|
|
|
|
|
Adjusted EBITDA ($) *
|
185
|
20
|
825 %
|
60
|
208 %
|
|
|
|
|
|
|
Adjusted EBITDA per nt ($) *
|
274
|
32
|
756 %
|
123
|
123 %
|
* See "Non-IFRS
measures" for a description of certain Non-IFRS measures used in
this Press Release and "Non-IFRS Measures
Reconciliation" below.
|
NM = Not Meaningful
|
"Our outstanding results in the first quarter are a clear
validation of the extensive strategic investments we have made in
our operating facilities over the past few years, highlighted by
the completion of our upgrade to create North America's only 'smart' blast furnace
late last year," said Alan
Kestenbaum, Executive Chairman and Chief Executive Officer.
"Our well-invested and upgraded assets, combined with the continued
deployment of our tactical flexibility model, delivered the highest
volume of shipments and generated the highest revenue our business
has seen since the second quarter of 2018. We are fully realizing
the promised benefits of the increased blast furnace capacity, as
demonstrated by the increased shipments, and continue to set new
benchmarks for hot metal and steel production. We have taken full
advantage of the rising tide in pricing and met the demand of our
customers by delivering record volumes of high value-added
cold-rolled and coated products. We more than doubled our shipments
of these products to customers over the fourth quarter of 2020, and
in turn achieved the highest volume of shipments of cold-rolled and
coated sheet products since acquiring the Company in mid-2017."
"We are continuing to benefit from our industry-leading cost
position and generated $185 million
in Adjusted EBITDA – our best quarterly performance in over two
years and the highest EBITDA margin of any reporting North American
steel producer1," continued Kestenbaum. "We are gaining
momentum and are looking to further advance our cost position with
continued strategic investments at Lake Erie Works in our ongoing
coke battery upgrade and our electricity cogeneration facility that
is currently under construction. During the first quarter, we also
completed the commissioning of our new pig iron caster which will
further enhance our tactical flexibility and allow us to re-shape
the pig iron market in North
America and provide up to one million tons of high-quality
iron units to the expanding, but scrap constrained, electric arc
furnace steel sector. All signs point to continued robust demand
and strong pricing in the near term, and I am excited by the
prospects for Stelco as we fully deploy our strategy and build upon
the gains we have made in the early part of this year."
"As we continue to generate cash, we are now beginning to turn
our attention towards capital allocation decisions which are
available to us to continue to build shareholder value," said
Kestenbaum. "Lack of constraints, thanks to our position as the
lowest net debt steel producer in North
America, coupled with our lack of exposure to the volatility
of post-employment benefit plans, enables us to convert very high
levels of EBITDA into free cash flow for us to evaluate many
different capital allocation options."
Paul Scherzer, Chief Financial
Officer, added, "The results we achieved in the first quarter are
testament to the hard work of our employees and reflect our
continued commitment to controlling our costs and maximizing the
financial return on our capital investments. However, this is only
the beginning. We have not historically issued guidance, other than
shipments, but want to impress upon the market the earnings power
of Stelco. Assuming the current forward curve for hot-rolled coil
on the CME, level quarterly shipments at our anticipated product
mix, and our current cost structure, we could generate Adjusted
EBITDA in excess of $2 billion over
the whole of 2021. Additionally, the alignment of management with
our shareholders remains at the core of our approach and is unique
within the North American steel industry. I am pleased that we are
in a strong financial position and able to once again provide a
quarterly dividend of $0.10 per
share. Our strategy has been proven, and we will not deviate from
our commitment to maintaining a strong balance sheet and positive
cash position."
1 Based on the most recently reported
quarterly periods for major publicly-listed North American steel
producers comprised of two integrated steel producers and four
minimill steel producers.
|
First Quarter 2021 Financial Review:
Compared to Q1 2020
Q1 2021 revenue increased $220
million, or 49%, from $445
million in Q1 2020, primarily due to a 36% increase in
average steel selling prices, a 9% increase in steel shipping
volumes and higher non-steel sales of $11
million. Our shipping volumes increased 54 thousand nt, from
621 thousand nt in Q1 2020 to 675 thousand nt in Q1 2021. The
average selling price of our steel products increased from
$705 per nt in Q1 2020 to
$959 per nt in Q1 2021. Non-steel
sales increased $11 million, from
$7 million in Q1 2020 to $18 million during Q1 2021, mostly due to higher
metallurgical coke, kish and scrap sales.
The Company realized operating income of $167 million for the quarter, compared to
$7 million in Q1 2020, a change of
$160 million consisting of an
increase in revenue of $220 million,
partly offset by an increase in cost of goods sold of $55 million and an increase in selling, general
and administrative expenses of $5
million.
Finance costs increased by $33
million, from $33 million in
Q1 2020, mostly due to the following: $53
million related to the remeasurement impact from our
employee benefit commitment, partly offset by $21 million related to the period-over-period
impact of foreign exchange translation on U.S. dollar denominated
working capital.
The Company realized net income of $119
million for the quarter, compared to a net loss of
$24 million in the first quarter of
2020, a change of $143 million
primarily due to the following: $160
million increase in operating income and $35 million deferred tax recovery, partly offset
by $33 million in higher finance
costs, $21 million decrease in
finance and other income mainly due to a loss on commodity-based
swaps. Adjusted net income totaled $155
million in Q1 2021, a change of $181
million from an adjusted net loss of $26 million in Q1 2020.
Adjusted EBITDA in Q1 2021 totaled $185
million, an increase of $165
million from $20 million in Q1
2020, which reflects an increase in average steel selling
prices, higher shipping volumes and higher
non-steel sales during the period.
Compared to Q4 2020
Q1 2021 revenue increased $241
million, or 57%, from $424
million in Q4 2020, primarily due to a 186 thousand nt or
38% increase in steel shipping volumes, from 489 thousand nt in Q4
2020 to 675 thousand nt in Q1 2021 and 32% higher average selling
prices, partly offset by a decrease in non-steel sales of
$50 million.
The Company realized an operating income of $167 million in Q1 2021 compared to $39 million in Q4 2020,
and an adjusted EBITDA of $185
million compared to $60
million during Q4 2020, which reflects
an increase in shipping volumes and average
selling prices.
Summary of Net Tons Shipped by Product:
(in thousands of nt)
Tons Shipped
by Product
|
Q1 2021
|
Q1 2020
|
Change
|
Q4 2020
|
Change
|
Hot-rolled
|
467
|
447
|
4 %
|
373
|
25 %
|
Coated
|
140
|
112
|
25 %
|
64
|
119 %
|
Cold-rolled
|
32
|
35
|
(9)%
|
15
|
113 %
|
Other a
|
36
|
27
|
33 %
|
37
|
(3)%
|
Total
|
675
621
|
9 %
|
489
|
38 %
|
|
|
|
|
|
Shipments by Product (%)
|
|
|
|
|
Hot-rolled
|
69 %
72 %
|
|
76 %
|
|
Coated
|
21 %
18 %
|
|
13 %
|
|
Cold-rolled
|
5 %
6 %
|
|
3 %
|
|
Other a
|
5 %
4 %
|
|
8 %
|
|
Total
|
100 %
100 %
|
|
100 %
|
|
a Includes other steel products: pig iron, slabs and non-prime steel sales.
|
Statement of Financial Position and Liquidity:
On a consolidated basis, Stelco Holdings ended Q1 2021 with cash
of $47 million and $109 million of borrowing base available under
the ABL revolver at March 31, 2021.
The following table shows selected information regarding the Stelco
Holdings' consolidated balance sheet as at the noted dates:
(millions of Canadian dollars)
|
|
|
As at
|
March 31, 2021
|
December 31, 2020
|
ASSETS
Cash
|
47
|
59
|
Trade and other receivables
|
271
|
183
|
Inventories
|
379
|
509
|
Total current assets
|
729
|
791
|
|
|
|
Derivative asset
|
142
|
133
|
Property, plant and equipment, net
|
858
|
845
|
Deferred tax asset
|
35
|
—
|
Total non-current assets
|
1,045
|
988
|
Total assets
|
1,774
|
1,779
|
|
|
|
LIABILITIES
Trade and other payables
|
505
|
668
|
Derivative liabilities
|
29
|
84
|
Asset-based lending facility
|
15
|
15
|
Obligations to independent employee trusts
|
36
|
36
|
Total current liabilities
|
628
|
847
|
|
|
|
Asset-based lending facility
|
153
|
113
|
Obligations to independent employee trusts
|
516
|
462
|
Total non-current liabilities
|
755
|
651
|
Total liabilities
|
1,383
|
1,498
|
|
|
|
Total equity
|
391
|
281
|
Stelco Holdings and its subsidiaries ended Q1 2021 with current
assets of $729 million, which
exceeded current liabilities of $628
million by $101 million.
Non-current assets include the derivative asset representing the
fair value of Stelco's option to purchase a 25% ownership interest
in the Minntac mine. Stelco Holdings' liabilities include
$552 million of obligations to
independent pension and OPEB trusts, which includes $442 million of employee benefit commitments and
$110 million under a mortgage note
payable associated with the June 2018
land purchase. Non-current liabilities of $755 million as at March
31, 2021 include $516 million
of obligations to independent pension and OPEB trusts. Stelco
Holdings' consolidated equity totaled $391
million at March 31, 2021.
Completion of Strategic Capital Projects
On January 28, 2021, Stelco
Holdings announced that its wholly-owned subsidiary, Stelco,
successfully commissioned the new pig iron caster at its Lake Erie
Works facility, which has the capability of casting up to one
million tons of pig iron per year. The addition of the pig iron
caster to Stelco's operations further supports the Company's
tactical flexibility strategy and will allow the Company to fully
capitalize on increased capacity resulting from the recently
completed blast furnace upgrade project.
With the expansion of electric arc furnace ("EAF") production in
North America, the demand for iron
units is placing increased pressure on the existing supply of scrap
steel, making pig iron an increasingly highly valued commodity in
the production of EAF steel. Stelco's new pig iron caster enables
it to access this market and enhances its complete suite of
products ranging from pig iron, to semi-finished steel, to hot-
rolled sheet, to high value-added cold-rolled and coated products,
as well as advanced high strength steels. This optionality will
allow the Company to maximize production and pursue markets that
yield the highest rate of return for its stakeholders.
Declaration of Quarterly Dividend
Stelco's Board of Directors approved the payment of a regular
quarterly dividend of $0.10 per share
which will be paid on May 19, 2021,
to shareholders of record as of the close of business on
May 14, 2021.
The regular quarterly dividend has been designated as an
"eligible dividend" for purposes of the Income Tax Act
(Canada).
Quarterly Results Conference Call
Stelco management will host a conference call to discuss its
results tomorrow, Wednesday, May 5,
2021, at 9:00 a.m. ET. To
access the call, please dial 1 (888) 390-0546 or 1 (416) 764-8688
and reference "Stelco". The conference call will also be webcasted
live on the Investor Relations section of Stelco's website at
https://www.stelco.com/investors. A presentation that will
accompany the conference call will also be available on the website
prior to the conference call. Following the conclusion of the live
call, a replay of the webcast will be available on the Investor
Relations section of the Company's website for at least 90 days. A
telephonic replay of the conference call will also be available
from 12:00 p.m. ET on May 5, 2021 until 11:59
p.m. ET on May 19, 2021 by
dialing 1 (888) 390-0541 or 1 (416) 764-8677 and using the PIN
074150#.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's unaudited interim consolidated financial
statements for the three months ended March
31, 2021, and Management's Discussion & Analysis thereon
are available under the Company's profile on SEDAR at
www.sedar.com.
About Stelco
Stelco is a low cost, integrated and independent steelmaker with
one of the newest and most technologically advanced integrated
steelmaking facilities in North
America. In addition to being North America's only integrated producer of
pig iron, Stelco produces flat-rolled value-added steels, including
premium-quality coated, cold-rolled and hot-rolled steel products.
With first-rate gauge, crown, and shape control, as well as
reliable uniformity of mechanical properties, our steel products
are supplied to customers in the construction, automotive and
energy industries across Canada
and the United States as well as
to a variety of steel service centres, which are regional
distributors of steel products. At Stelco, we understand the
importance of our business reflecting the communities we serve and
are committed to diversity and inclusion as a core part of our
workplace culture, in part, through active participation in the
BlackNorth Initiative.
Non-IFRS Measures
This news release refers to certain non-IFRS measures that are
not recognized under International Financial Reporting Standards
("IFRS") and do not have a standardized meaning prescribed by IFRS.
These measures are not recognized measures under IFRS, do not have
a standardized meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other companies.
Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding
of our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation
nor as a substitute for analysis of our financial information
reported under IFRS. We use non-IFRS measures including "adjusted
net income", "adjusted net income per share", ''adjusted EBITDA'',
''adjusted EBITDA per nt'', ''selling price per nt'', and
''shipping volume'' to provide supplemental measures of our
operating performance and thus highlight trends in our core
business that may not otherwise be apparent when relying solely on
IFRS financial measures. We also believe that securities analysts,
investors and other interested parties frequently use non-IFRS
measures in the evaluation of issuers. Our management uses these
non-IFRS financial measures to facilitate operating performance
comparisons from period-to-period, to prepare annual operating
budgets and forecasts, and drive performance through our management
compensation program. For a reconciliation of these non-IFRS
measures, refer to the Company's "Non-IFRS Measures Reconciliation"
section below. For a definition of these non-IFRS measures, refer
to the Company's MD&A for the period ended March 31, 2021 available under the Company's
profile on SEDAR at www.sedar.com.
Forward-Looking Information
This release contains "forward-looking information" within the
meaning of applicable securities laws. Forward-looking information
may relate to our future outlook and anticipated events or results
and may include information regarding our financial position,
business strategy, growth strategy, acquisition, opportunities,
budgets, operations, financial results, taxes, dividend policy,
plans and objectives of our Company. Particularly, information
regarding our expectations of future results, performance,
achievements, prospects or opportunities is forward-looking
information. In some cases, forward-looking information can be
identified by the use of forward-looking terminology such as
"plans", "targets", "expects" or "does not expect", "is expected",
"an opportunity exists", "budget", "scheduled", "estimates",
"outlook", "forecasts", "projection", "prospects", "strategy",
"intends", "anticipates", "does not anticipate", "believes", or
variations of such words and phrases or state that certain actions,
events or results "may", "could", "would", "might", "will", "will
be taken", "occur" or "be achieved". In addition, any statements
that refer to expectations, intentions, projections or other
characterizations of future events or circumstances may be forward
looking statements. Forward-looking statements are not historical
facts but instead represent management's expectations, estimates
and projections regarding future events or circumstances. The
forward-looking statements contained herein are presented for the
purpose of assisting the holders of our securities and financial
analysts in understanding our financial position and results of
operations as at and for the periods ended on the dates presented,
as well as our financial performance objectives, vision and
strategic goals, and may not be appropriate for other purposes.
Forward-looking information in this news release includes:
expectations that we will continue to fully realize the expected
benefits of increased blast furnace production capacity realized to
date; expectations that we will further advance our cost position
through strategic investments at Lake Erie Works, including with
respect to the ongoing coke battery upgrade and construction of an
electricity cogeneration facility; expectations that our new pig
iron caster will further enhance our tactical flexibility and allow
us to re-shape the pig iron market in North America; expectations regarding the
production capacity of the pig iron caster; expectations regarding
the market demand and price for our products; expectations
regarding Stelco's strategic prospects; expectations regarding
future capital allocation and shareholder value; expectations that
we will continue to operate the business as one of the lowest-cost
integrated steel producers in North
America; expectations regarding our ability to convert
revenue into net income and free cash flow; expectations regarding
our ability to maintain a strong balance sheet and a positive cash
position; expectations regarding the production capability of the
pig iron caster and our ability to capitalize on such capability by
accessing the market for pig iron; and expectations that the pig
iron caster will allow the Company to maximize production and
pursue markets that yield the highest rate of return for
stakeholders.
Undue reliance should not be placed on forward-looking
information. The forward-looking information in this press release
is based on our opinions, estimates and assumptions in light of our
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that we
currently believe are appropriate and reasonable in the
circumstances. Despite a careful process to prepare and review the
forward-looking information, there can be no assurance that the
underlying opinions, estimates and assumptions will prove to be
correct. Certain assumptions in respect of: our ability to complete
new capital projects on schedule and within budget and their
anticipated effect on revenue and costs; our ability to obtain all
applicable regulatory approvals required in connection with new
facilities; our ability to source necessary volumes of raw
materials and other inputs at competitive prices; our facilities
operating at design capacity; the market demand for iron units
continuing to face increased pressure; our ability to supply to new
customers and markets; our ability to effectively manage costs; our
ability to attract and retain key personnel and skilled labour; our
ability to obtain and maintain existing financing on acceptable
terms; currency exchange and interest rates; the impact of
competition; changes in laws, rule, and regulations, including
international trade regulations; our ability to continue to access
the U.S. market without any adverse trade restrictions; upgrades to
existing facilities remaining on schedule and on budget and their
anticipated effect on revenue and costs; and growth in steel
markets and industry trends, as well as those set out in this press
release, are material factors made in preparing the forward-looking
information and management's expectations contained in this press
release.
Key Assumptions Underlying Our Pig Iron Production
Estimates
The estimated production volumes associated with the recently
completed pig iron caster included in this press release are based
on a number of assumptions in addition to the foregoing
assumptions, including, but not limited to, the following material
assumptions: facilities producing in accordance with design
capacity, as applicable; recently experienced increases in the
production volume from our LEW blast furnace remaining consistent
on an annual basis; expectations that the market for steel does not
experience a material adverse change; and expectations that our
customers will continue to purchase material volumes of
production.
Key Assumptions Underlying our Adjusted EBITDA
Estimates
The Adjusted EBITDA estimate for the whole of 2021 included in
this press release is based on a number of assumptions in addition
to the foregoing assumptions, including, not limited to, the
following material assumptions: the current forward curve for
hot-rolled coil remaining relatively proximate to current pricing;
our ability to maintain quarterly shipments through 2021 that are
relatively consistent with the first quarter of 2021; the Company
not experiencing a significant change to its current cost
structure; interest rates remain at historical low levels and
exchange rates remain stable; the Company's ability to continue to
access the U.S. market without any adverse trade restrictions; no
significant legal or regulatory developments, changes in economic
conditions, or macro changes in the competitive environment
affecting our business activities; upgrades to existing facilities
remaining on schedule and on budget and their anticipated effect on
revenue and costs; the Company's ability to attract new customers
and further develop and maintain existing customers; the impact of
competition; and growth in steel markets and industry trends.
We believe that our performance and our ability to achieve this
estimate depends on a number of material factors including: (i)
sustained demand; (ii) continued steel production capacity
curtailments in China; (iii)
continued fair trade practices, particularly with respect to the
North American market; (iv) the COVID-19 pandemic not having an
adverse impact on North American demand for our products or our
ability to produce; (v) continued signs of a broad economic
recovery, together with ongoing economic support from federal,
provincial, and local governments in respect of the COVID-19
pandemic; and (vi) stable supply and demand fundamentals in the
rest of the world. These factors are also subject to a number of
inherent risks, challenges and assumptions.
Forward-looking information is subject to known and unknown
risks, uncertainties, assumptions and other factors that may cause
the actual results, level of activity, performance or achievements
to be materially different from those expressed or implied by such
forward-looking information, including: COVID-19; North American
and global steel overcapacity; imports and trade remedies;
competition from other producers, imports or alternative materials;
and the availability and cost of inputs placing downward pressure
on steel prices or increasing our costs; as well as those described
in the Company's annual information form dated February 17, 2021 and the Company's MD&A for
the period ended December 31, 2020
available under the Company's profile on SEDAR at
www.sedar.com.
There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such information. Accordingly,
readers should not place undue reliance on forward looking
information, which speaks only as of the date made. The
forward-looking information contained in this press release
represents our expectations as of the date of this news release and
are subject to change after such date. Stelco Holdings disclaims
any intention or obligation or undertaking to update publicly or
revise any forward-looking statements, whether written or oral,
whether as a result of new information, future events or otherwise,
except as required by law.
Selected Financial Information
The following includes financial information prepared by
management in accordance with IFRS. This financial information
does not contain all disclosures required by IFRS, and accordingly
should be read in conjunction with Stelco Holdings Inc.'s
Consolidated Financial Statements and MD&A for the period
ended March 31, 2021, which are
available on the Company's website and on SEDAR
(www.sedar.com).
Stelco Holdings Inc.
Consolidated Statements of Income (Loss)
(unaudited)
|
|
|
|
|
|
(millions of Canadian dollars)
Three months ended March 31,
|
2021
|
2020
|
Revenue from sale of goods
|
$
|
665
|
$
|
445
|
Cost of goods sold
|
484
|
429
|
Gross profit
|
181
|
16
|
Selling, general and administrative expenses
|
14
|
9
|
Operating income
|
167
|
7
|
|
|
|
Other income (loss) and (expenses)
Finance costs
|
(66)
|
(33)
|
Finance and other income (loss)
|
(17)
|
4
|
Restructuring and other costs
|
—
|
(1)
|
Share of loss from joint ventures
|
—
|
(1)
|
Income (loss) before income taxes
|
84
|
(24)
|
Deferred tax recovery
|
35
|
—
|
Net income (loss)
|
$
|
119
|
$
|
(24)
|
|
|
|
|
Stelco Holdings Inc. Consolidated Balance Sheets
(In millions of Canadian dollars) (unaudited)
|
|
As at
|
|
March 31, 2021
|
|
December 31, 2020
|
ASSETS
|
|
|
|
|
Current assets
|
|
|
|
|
Cash
|
$
|
47
|
$
|
59
|
Restricted cash
|
|
12
|
|
8
|
Trade and other receivables
|
|
271
|
|
183
|
Inventories
|
|
379
|
|
509
|
Prepaid expenses and deposits
|
|
20
|
|
32
|
Total current assets
|
$
|
729
|
$
|
791
|
Non-current assets
|
|
|
|
|
Derivative asset
|
|
142
|
|
133
|
Property, plant and equipment, net
|
|
858
|
|
845
|
Intangible assets
|
|
8
|
|
8
|
Investment in joint ventures
|
|
2
|
|
2
|
Deferred tax asset
|
|
35
|
|
—
|
Total non-current assets
|
$
|
1,045
|
$
|
988
|
Total assets
|
$
|
1,774
|
$
|
1,779
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
Current liabilities
|
|
|
|
|
Trade and other payables
|
$
|
505
|
$
|
668
|
Derivative liabilities
|
|
29
|
|
84
|
Other liabilities
|
|
43
|
|
44
|
Asset-based lending facility
|
|
15
|
|
15
|
Obligations to independent employee trusts
|
|
36
|
|
36
|
Total current liabilities
|
$
|
628
|
$
|
847
|
Non-current liabilities
|
|
|
|
|
Provisions
|
|
6
|
|
6
|
Pension benefits
|
|
12
|
|
11
|
Other liabilities
|
|
68
|
|
59
|
Asset-based lending facility
|
|
153
|
|
113
|
Obligations to independent employee trusts
|
|
516
|
|
462
|
Total non-current liabilities
|
$
|
755
|
$
|
651
|
Total liabilities
|
$
|
1,383
|
$
|
1,498
|
|
|
|
|
|
EQUITY
|
|
|
|
|
Common shares
|
|
512
|
|
512
|
Accumulated deficit
|
|
(121)
|
|
(231)
|
Total equity
|
$
|
391
|
$
|
281
|
Total liabilities and equity
|
$
|
1,774
|
$
|
1,779
|
Non-IFRS Measures Results
The following table provide a reconciliation of net income (loss) to adjusted net income (loss) for the period indicated:
(millions of Canadian dollars)
|
|
|
Three months ended March 31,
|
2021
|
2020
|
Net income (loss)
|
$
|
119
|
$
|
(24)
|
Add back/(Deduct):
Remeasurement of employee benefit commitment 1
|
52
|
(1)
|
Deferred tax recovery
|
(35)
|
—
|
Loss (gain) from commodity-based swaps, net
|
27
|
(2)
|
Gain on derivative asset
|
(9)
|
—
|
Transaction-based and other corporate-related costs
|
1
|
1
|
Restructuring and other costs
|
—
|
1
|
Share-based compensation expense (recovery)
|
—
|
(1)
|
Adjusted net income (loss)
|
$
|
155
|
$
|
(26)
|
|
1 Remeasurement of employee benefit commitment for change in the timing of estimated cash flows and future funding requirements.
|
The following table provides a reconciliation of net income (loss) to adjusted EBITDA for the periods indicated:
(millions of Canadian dollars, except where otherwise noted)
|
|
|
Three months ended March 31,
|
2021
|
2020
|
Net income (loss)
|
$
|
119
|
$
|
(24)
|
Add back/(Deduct):
|
|
|
Finance costs
|
66
|
33
|
Deferred tax recovery
|
(35)
|
—
|
Loss (gain) from commodity-based swaps, net
|
27
|
(2)
|
Depreciation
|
16
|
13
|
Gain on derivative asset
|
(9)
|
—
|
Transaction-based and other corporate-related costs
|
1
|
1
|
Restructuring and other costs
|
—
|
1
|
Share-based compensation expense (recovery)
|
—
|
(1)
|
Finance income
|
—
|
(1)
|
Adjusted EBITDA
|
$
|
185
|
$
|
20
|
|
|
|
Adjusted EBITDA as a percentage of total revenue
|
28 %
|
4 %
|
SOURCE Stelco