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Commercial Metals Company Reports Fourth Quarter Results And Full Year Earnings Per Share Of

The following excerpt is from the company's SEC filing.

$141.6

MILLION

Irving, TX -

October 28, 2015

- Commercial Metals Company (NYSE: CMC) today announced financial results for its fiscal

fourth

quarter and year ended

August 31, 2015

. For the year ended

, net earnings attributable to CMC were

$141.6 million

per diluted share, on net sales of

$6.0 billion

. This compares to net earnings attributable to CMC of

$115.6 million

$6.8 billion

for the year ended

August 31, 2014

. Net loss attributable to CMC for the three months ended

$5.8 million

per share, on net sales of

$1.4 billion

$34.9 million

$1.8 billion

Results for the

quarter of fiscal

included after-tax LIFO expense from continuing operations of

$23.7 million

per share), compared to after-tax LIFO income from continuing operations of

$1.0 million

per diluted share) for the

. Additionally, our results from continuing operations for the fiscal fourth quarter included after-tax charges related to goodwill impairment for our Americas Recycling segment of $4.7 million ($0.04 per share), costs associated with exiting our distribution operation in Cardiff, Wales, UK of $2.9 million ($0.03 per share), and other charges including inventory write-downs, severance cost and long-lived asset impairments totaling $4.0 million ($0.03 per share). The sum of these items negatively impacted our earnings from continuing operations for the fourth quarter of our fiscal year by a total of $0.30 per share. Adjusted operating profit from continuing operations was

$12.3 million

, compared to adjusted operating profit from continuing operations of

$68.8 million

. Adjusted EBITDA from continuing operations was

$54.6 million

, compared to adjusted EBITDA from continuing operations of

$104.4 million

Joe Alvarado, Chairman of the Board, President and CEO, commented, "For our fiscal year ended

, we achieved adjusted EBITDA from continuing operations of

$464.6 million

, our best since fiscal 2008. In August, construction spending continued to rise for the eighth consecutive month, led by an increase in non-residential construction spending year over year. During the fourth quarter of fiscal

, we completed the sale of a majority of our Australian distribution business. Six of the locations were sold, three were shut down, while one remains held for sale. For fiscal

, net cash flows from operating activities were

$313.5 million

(CMC Year End 2015 - Page

, the board of directors of CMC declared a quarterly dividend of $0.12 per share of CMC common stock for stockholders of record on

November 11, 2015

. The dividend will be paid on

November 25, 2015

Business Segments - Fiscal Fourth Quarter 2015 Review

Our Americas Recycling segment recorded an adjusted operating loss of

$15.4 million

, compared to an adjusted operating loss of

$2.1 million

, ferrous and nonferrous shipments decreased 22% and 14%, respectively, while the average ferrous metal margin was flat, and the average nonferrous metal margin contracted 20%, compared to the

quarter of the prior fiscal year. Furthermore, this segment recorded goodwill impairment charges of $7.3 million as a result of the Company's annual goodwill impairment analysis in the fourth quarter of fiscal

. Additionally, for the

, this segment recorded pre-tax LIFO expense of

$1.5 million

, compared to pre-tax LIFO income of

$0.3 million

Our Americas Mills segment recorded an adjusted operating profit of

$46.2 million

, compared to an adjusted operating profit of

$63.8 million

. The decrease in adjusted operating profit for the

was due to a

decrease in total shipments, which outpaced a

increase in average metal margin compared to the

. The decrease in total shipments was driven by a 38 thousand short ton decrease in billet shipments and a nine thousand short ton decrease in shipments of our higher margin finished products, including reinforcement bar ("rebar") and merchants, compared to the

$13.9 million

, compared to pre-tax LIFO expense of

$6.1 million

Our Americas Fabrication segment recorded an adjusted operating profit of

$7.5 million

$8.1 million

, total shipments increased

, and the average composite metal margin expanded 23%, compared to the

. Offsetting these improvements, for the

$11.0 million

$3.8 million

Our International Mill segment recorded an adjusted operating profit of

$6.4 million

$5.0 million

in the prior year's

quarter. For the

, the average selling price decreased

per short ton, while the average cost of ferrous scrap consumed decreased

per short ton, resulting in a

squeeze in average metal margin, compared to the

. Additionally, during the

, total shipments decreased

quarter of the prior fiscal year. However, the decreases in average metal margin and total shipments were

more than offset by an $8.3 million decline in utilities and repairs and maintenance expenses partially due to efficiencies gained from the commissioning of a new, state-of-the-art electric arc furnace in the third quarter of fiscal 2014. For the fourth quarter of fiscal

, adjusted operating profit reflected an unfavorable foreign currency impact of approximately $2.2 million.

Our International Marketing and Distribution segment recorded an adjusted operating loss of

$13.7 million

$15.5 million

quarter. The

$29.2 million

decline in adjusted operating profit in the

was the result of an 18% decrease in volumes coupled with a 31% decrease in average margin, compared to the

. This segment's results continued to be pressured by the strong U.S. dollar, global steel overcapacity and weak oil and gas tubular demand. In addition, during the fourth quarter of fiscal

, we made the decision for an orderly exit of our steel distribution operation in Cardiff, Wales, UK, and this segment recorded an expense of approximately $4.5 million associated with this action. Furthermore, for the

$10.1 million

$3.5 million

Full Year Review

Earnings from continuing operations for fiscal

$161.3 million

per diluted share. For the year ended

, net cash flow from operating activities was

, and adjusted EBITDA from continuing operations was

. On a continuing operations basis, for fiscal

, we recorded after-tax LIFO income of

$51.5 million

per diluted share), compared to after-tax LIFO expense of

$8.8 million

per diluted share) in fiscal

. As of

, cash and short-term investments totaled

$485.3 million

, an increase of

from the end of our

Pursuant to our share repurchase program that was approved in October 2014, during fiscal

, we purchased approximately

shares of our common stock for

$41.8 million

Loss from discontinued operations for fiscal year

$19.7 million

, which primarily consisted of operating losses related to our Australian steel distribution business.

Outlook

Mr. Alvarado concluded, "Non-residential construction spending, which is our primary end use market in the U.S., was up 24%...


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