-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Uw9IZX7PzvlXwcE2kbAEnO2Alo2ByAE2jE/l6jS01UiM37H9ChCMbwMbTgRFAEKZ jD4HhTHEubx7oi7NnlhbZA== 0000950123-97-009189.txt : 19971107 0000950123-97-009189.hdr.sgml : 19971107 ACCESSION NUMBER: 0000950123-97-009189 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971106 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: STEEL DYNAMICS INC CENTRAL INDEX KEY: 0001022671 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 351929476 STATE OF INCORPORATION: IN FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-21719 FILM NUMBER: 97709199 BUSINESS ADDRESS: STREET 1: 4500 COUNTY RD 59 CITY: BUTLER STATE: IN ZIP: 46721 BUSINESS PHONE: 2198688000 MAIL ADDRESS: STREET 1: 4500 COUNTY RD 59 CITY: BUTLER STATE: IN ZIP: 46721 10-Q 1 STEEL DYNAMICS, INC. 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q X Quarterly Report Pursuant to Section 13 or 15(d) of the Securities --- Exchange Act of 1934 For the period ended September 30, 1997 OR Transition Report Pursuant to Section 13 or 15(d) of the Securities --- Exchange Act of 1934 Commission File Number 0-21719 STEEL DYNAMICS, INC. (Exact name of registrant as specified in its charter) INDIANA 35-1929476 (State or other jurisdiction of incorporation or organization) (I.R.S. employer Identification No.)
4500 COUNTY ROAD 59, BUTLER, IN 46721 (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (219) 868-8000 Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered ------------------- ----------------------------------------- NONE NONE
Securities registered pursuant to Section 12(g) of the Act: Common Stock, $0.01 par value Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days Yes X No --- --- As of November 6, 1997, Registrant had outstanding 49,131,116 shares of Common Stock. 2 STEEL DYNAMICS, INC. TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS: Page ---- Consolidated Balance Sheets as of December 31, 1996 and unaudited September 30, 1997 ............ 1 Consolidated Statements of Operations for the three and nine month periods ended September 28, 1996 and September 30, 1997 (unaudited).......................................... 2 Consolidated Statements of Cash Flows for the three and nine month periods ended September 28, 1996 and September 30, 1997 (unaudited).......................................... 3 Notes to Consolidated Financial Statements....................................................... 4 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS...................................................................... 6 PART II. OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K................................................................. 9 SIGNATURE....................................................................................... 9
3 STEEL DYNAMICS, INC. CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS)
DECEMBER 31, SEPTEMBER 30, 1996 1997 ------------ ------------- (UNAUDITED) ASSETS CURRENT ASSETS: Cash and cash equivalents ................................................................ $ 57,460 $ 15,089 Accounts receivable, net ................................................................. 14,600 24,490 Accounts receivable-related parties ...................................................... 17,860 17,640 Inventories .............................................................................. 65,911 53,798 Deferred taxes ........................................................................... 17,239 Other current assets ..................................................................... 1,599 2,296 -------- -------- Total current assets ............................................................ 157,430 130,552 PROPERTY, PLANT, AND EQUIPMENT, NET ........................................................... 339,263 454,412 DEBT ISSUANCE COSTS, NET ...................................................................... 12,405 973 RESTRICTED CASH ............................................................................... 2,827 2,749 OTHER ASSETS .................................................................................. 10,366 9,773 -------- -------- TOTAL ASSETS .................................................................... $522,291 $598,459 ======== ======== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable ......................................................................... $ 28,968 $ 27,017 Accounts payable-related parties ......................................................... 12,218 8,642 Other accrued expenses ................................................................... 9,196 14,930 Current maturities of long-term debt ..................................................... 11,175 6,071 -------- -------- Total current liabilities ....................................................... 61,557 56,660 LONG-TERM DEBT, less current maturities ....................................................... 196,168 197,525 DEFERRED TAXES ................................................................................ 14,198 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Common stock voting, $.01 par value; 100,000,000 shares authorized; 47,803,341 and 49,131,116 shares issued and outstanding as of December 31, 1996 and September 30, 1997, respectively .................................................................. 478 491 Additional paid-in capital ............................................................... 303,846 333,777 Accumulated deficit ...................................................................... (39,758) (4,192) -------- -------- Total stockholders' equity ...................................................... 264,566 330,076 -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY ...................................... $522,291 $598,459 ======== ========
1 4 STEEL DYNAMICS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------- --------------------------------- SEPTEMBER 28, SEPTEMBER 30, SEPTEMBER 28, SEPTEMBER 30, 1996 1997 1996 1997 ------------- ------------- ------------- ------------- NET SALES: Unrelated parties ......................... $ 41,545 $ 62,086 $ 91,019 $ 176,376 Related parties ........................... 34,412 42,616 83,600 129,103 --------- --------- --------- --------- Total net sales ....................... 75,957 104,702 174,619 305,479 Cost of goods sold ............................. 62,664 81,003 158,257 231,182 --------- --------- --------- --------- GROSS PROFIT ................................... 13,293 23,699 16,362 74,297 Selling, general and administrative expenses ... 3,455 7,471 9,347 19,949 --------- --------- --------- --------- OPERATING INCOME ............................... 9,838 16,228 7,015 54,348 Foreign currency gain (loss) ................... (1) 260 260 Interest expense ............................... (5,922) (1,487) (18,050) (5,480) Interest income ................................ 378 251 957 1,515 --------- --------- --------- --------- INCOME (LOSS) BEFORE INCOME TAXES AND EXTRAORDINARY LOSS ....................... 4,294 14,991 (9,818) 50,643 Income tax expense ............................. 1,954 7,452 --------- --------- --------- --------- INCOME (LOSS) BEFORE EXTRAORDINARY LOSS ........ 4,294 13,037 (9,818) 43,191 Extraordinary loss, net of tax ................. (7,624) (7,624) --------- --------- --------- --------- NET INCOME (LOSS) ......................... $ 4,294 $ 5,413 $ (9,818) $ 35,567 ========= ========= ========= ========= INCOME (LOSS) PER SHARE BEFORE EXTRAORDINARY LOSS ........................... $ .11 $ .27 $ (0.27) $ .90 PER SHARE EFFECT OF EXTRAORDINARY LOSS ......... (0.16) (0.16) --------- --------- --------- --------- NET INCOME (LOSS) PER SHARE .................... $ .11 $ .11 $ (0.27) $ .74 ========= ========= ========= ========= WEIGHTED AVERAGE SHARES OUTSTANDING ............ 38,441 48,540 35,940 48,080 ========= ========= ========= =========
2 5 STEEL DYNAMICS, INC. UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (AMOUNTS IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED ----------------------------- ----------------------------- SEPTEMBER 28, SEPTEMBER 30, SEPTEMBER 28, SEPTEMBER 30, 1996 1997 1996 1997 ------------- ------------- ----------- ------------- OPERATING ACTIVITIES: Net income (loss) ............................................. $ 4,294 $ 5,413 $ (9,818) $ 35,567 Adjustments to reconcile net income (loss) to net cash provided (used) in operating activities: Depreciation and amortization ............................. 5,415 6,078 14,208 17,685 Foreign currency gain ..................................... 1 (260) (260) Deferred taxes ............................................ (4,509) (3,041) Extraordinary loss ........................................ 11,019 11,019 Changes in certain assets and liabilities: Accounts receivable .................................. (6,922) (5,141) (34,942) (9,670) Inventories .......................................... (9,881) 3,031 (22,280) 12,113 Other assets ......................................... 1,396 (1,079) 410 (697) Accounts payable ..................................... 2,926 (2,723) 3,962 (5,527) Accrued expenses ..................................... 1,513 2,587 3,095 5,993 --------- --------- --------- --------- Net cash provided (used) in operating activities ... (1,259) 14,677 (45,625) 63,182 --------- --------- --------- --------- INVESTING ACTIVITIES: Purchases of property, plant, and equipment ................... (17,224) (49,935) (29,286) (131,459) Proceeds from government grants ............................... 91 1,558 Purchase of short term investments ............................ (7,000) Maturities of short term investments .......................... 4,000 4,000 Other ......................................................... (414) 29 (985) 85 --------- --------- --------- --------- Net cash used in investing activities .............. (13,547) (49,906) (31,713) (131,374) --------- --------- --------- --------- FINANCING ACTIVITIES: Issuance of long-term debt .................................... 35,157 Repayments of long-term debt .................................. (840) (1,243) (1,079) (3,669) Issuance of common stock, net of expenses ..................... 25,387 29,711 70,482 29,944 Debt issuance costs ........................................... (443) (3,542) (454) --------- --------- --------- --------- Net cash provided in financing activities .......... 24,547 8,025 101,018 25,821 --------- --------- --------- --------- Increase (decrease) in cash and cash equivalents ................... 9,741 (7,204) 23,680 (42,371) Cash and cash equivalents at beginning of period ................... 20,823 22,293 6,884 57,460 --------- --------- --------- --------- Cash and cash equivalents at end of period ......................... $ 30,564 $ 15,089 $ 30,564 $ 15,089 ========= ========= ========= =========
3 6 STEEL DYNAMICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. BASIS OF PRESENTATION The preparation of financial statements in conformity with generally accepted accounting principles requires that management make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements. The reported amounts of revenues and expenses during the reporting period may also be affected by the estimates and assumptions management is required to make. Actual results may differ from those estimates. In the opinion of management these financial statements reflect all adjustments, consisting of only normal recurring accruals, including elimination of all significant intercompany balances and transactions, which are necessary to a fair statement of the results for the interim periods covered by such statements. Certain amounts from prior year financial statements have been reclassified to conform to the current year presentation. These financial statements and notes should be read in conjunction with the audited financial statements included in the Company's 1996 Annual Report on Form 10-K. 2. INVENTORIES (in thousands)
December 31, September 30, 1996 1997 ------------ ------------- Raw Materials .................... $48,065 $28,942 Supplies ......................... 11,854 14,512 Work in Progress ................. 3,507 Finished Goods ................... 5,992 6,837 ------- ------- $65,911 $53,798 ======= =======
3. COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL
Shares Amount ---------- ---------- (in thousands) Balance at January 1, 1997 ......... 47,803,341 $ 304,324 Exercise of stock options .......... 71,804 307 Issuance of shares ................. 1,255,971 29,637 ---------- ---------- Balance at September 30, 1997 ...... 49,131,116 $ 334,268 ========== ==========
Effective January 10, 1997, the vesting period under the 1994 Incentive Stock Option Plan for exercise of stock options was reduced to six months after the grant date with respect to one-third of the shares covered by options. This was made effective for all outstanding as well as newly granted options. The remaining two-thirds of the optioned shares retain their original five year vesting period. Consistent with the 1996 Plan, effective May 21, 1997, options were granted under the 1996 Incentive Stock Option Plan for 94,408 shares at a exercise price of $20.625 per share to substantially all the employees of the Company. 4 7 STEEL DYNAMICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. NEW PRONOUNCEMENTS In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings per Share" ("SFAS No. 128"). SFAS No. 128 establishes new standards for computing and presenting earnings per share ("EPS"). Specifically, SFAS No. 128 replaces the presentation of primary EPS with a presentation of basic EPS, requires dual presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation. SFAS No. 128 is effective for financial statements issued for periods ending after December 15, 1997; earlier application is not permitted. Management has determined that the adoption of SFAS No. 128 will not have a material effect on the accompanying consolidated financial statements. In June 1997 the FASB issued SFAS No. 130 "Comprehensive Income" ("SFAS 130"). SFAS 130 becomes effective in 1998 and requires reclassification of earlier financial statements for comparative purposes. SFAS 130 requires that changes in the amounts of certain items, including foreign currency translation adjustments and gains and losses on certain securities be shown in the financial statements. SFAS 130 does not require a specific format for the financial statement in which comprehensive income is reported, but does require that an amount representing total comprehensive income be reported in that statement. Management has not yet determined the effect, if any, of SFAS 130 on the consolidated financial statements. Also in June 1997, the FASB issued SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information." This Statement will change the way public companies report information about segments of their business in their annual financial statements and requires them to report selected segment information in their quarterly reports issued to shareholders. It also requires entity-wide disclosures about the products and services an entity provides, the material countries in which it holds assets and reports revenues, and its major customers. The Statement is effective for fiscal years beginning after December 15, 1997. Management has not yet determined the effect, if any, of SFAS 131 on the consolidated financial statements. 5 8 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS Net Sales Net sales totaled approximately $104.7 million for the third quarter of 1997 and $305.5 million for first nine months of 1997. Net sales were approximately $76.0 million for the third quarter of 1996 and $174.6 million for the first nine months of 1996. The increases in net sales for the periods presented are a result of the Company increasing its sales and production as it nears capacity. SDI began commercial production of primary grade steel on January 2, 1996 and has continued to increase its net sales as its production increased. By the third quarter ended September 28, 1996, the Company was operating at an annualized rate of 749,000 tons, or 54% of full capacity. As of September 30, 1997, the Company was operating at an annualized rate of 1.2 million tons, or 86% of full capacity. In addition, the average sales price per prime ton of hot band increased from $348 for the third quarter 1996 to $352 for the third quarter 1997 and the percentage of prime tons produced increased from 87% for the nine months ended September 28, 1996 to 96% for the nine months ended September 30, 1997. Cost of Goods Sold Cost of goods sold totaled approximately $81.0 million, or 77% of net sales, for the third quarter of 1997 and approximately $231.2 million, or 76% of net sales, for the first nine months of 1997. Cost of goods sold totaled approximately $62.7 million, or 83% of net sales, for the third quarter of 1996 and approximately $158.3 million, or 91% of net sales, for the first nine months of 1996. Total cost of sales increased as a result of production and sales increases. Management expects total cost of sales to increase as production and sales continue to rise, however, cost of sales as a percentage of sales should continue to improve. Selling, General and administrative Selling, general and administrative was approximately $3.5 million and $7.5 million for the third quarter of 1996 and 1997, respectively, and approximately $9.3 million and $20.0 million for the first nine months of 1996 and 1997, respectively. The increases for the three month period and the nine month period ended September 30, 1997 over the corresponding periods for the prior year are predominantly a result of increased start up costs associated with the Cold Mill Project and Iron Dynamics, increased profit sharing expense as a result of favorable operations and increases in administrative expenses as the Company continues to grow as a publicly traded entity. Interest Expense Interest expense totaled approximately $5.9 million and $1.5 million for the third quarter of 1996 and 1997, respectively, and approximately $18.1 and $5.5 million for the first nine months of 1996 and 1997, respectively. The decrease in interest expense is primarily due to lower interest rates associated with the amended credit facility, the prepayment of subordinated debt which occurred in December 1996, and capitalized interest associated with the cold mill and caster projects. Foreign Currency Gain The foreign currency gains represent transaction gains incurred by the Company for purchases of equipment used within the Company's mini-mill. A portion of the purchase price, as stated within the contract to purchase the equipment, was denominated in German marks. The Company committed to purchase the equipment in December 1993 with settlement of the liability primarily occurring during the construction period of the mini-mill. No commitments for equipment purchases denominated in a foreign currency exist as of September 30, 1997. Foreign currency gain totaled $260,000 for the nine months ended September 28, 1996 and September 30, 1997, respectively. Interest Income Interest income totaled approximately $378,000 and $251,000 and the third quarter of 1996 and 1997, respectively, and approximately $957,000 and $1.5 million for the first nine months of 1996 and 1997, respectively. Taxes At December 31, 1996, the Company had available net operating losses ("NOLs") for federal income tax purposes of approximately $60.6 million of which $200,000 expire in 2009, $2.4 million expire in 2010 and $58.0 million expire in 2011. Because of the 6 9 Company's limited operating history, a valuation allowance has been established for a portion of the deferred tax asset. As the Company continues to be a profitable operation the valuation allowance will continue to be adjusted. For the nine months ended September 30, 1997, income taxes are computed using the Company's expected annual effective tax rate, which gives effect to the utilization of available net operating loss carryforwards. LIQUIDITY AND CAPITAL RESOURCES Steel Dynamics' business is capital intensive and requires substantial expenditures for, among other things, the purchase and maintenance of equipment used in its steelmaking and finishing operations and compliance with environmental laws. The Company's liquidity needs arise primarily from capital investments, working capital requirements and principal and interest payments on its indebtedness. Since its inception, SDI has met these liquidity requirements with cash provided by equity, long-term borrowings, state and local government grants and capital cost reimbursements. Net cash used in operating activities totaled approximately $1.3 million for the third quarter of 1996 and $45.6 million for the first nine months of 1996. The use of cash in operating activities for the third quarter and first nine months of 1996 primarily related to the build up of raw material inventory as a result of favorable pricing and the substantial increase in accounts receivable from the beginning of the year as a result of production and sales increases. During the third quarter of 1997, the Company provided net cash of approximately $14.7 million from operating activities resulting from an increase in net income, a non-cash extraordinary loss, and decreases in raw material inventory due to less favorable pricing levels. These cash provisions were offset by an increase in accounts receivable as a result of production and sales increases. During the first nine months of 1997, the Company provided net cash of approximately $63.2 million from operating activities resulting from net income, non-cash charges for depreciation and an extraordinary loss, and an overall net decreased raw material inventory due to less favorable pricing levels. Net cash used in investing activities totaled approximately $13.5 million from the third quarter of 1996, approximately $49.9 million for the third quarter of 1997, approximately $31.7 million and $ 131.4 million for the first nine months of 1996 and 1997, respectively. Investing activities primarily consisted of capital expenditures of approximately $17.2 million and $49.9 million for the third quarter of 1996 and 1997, respectively, and approximately $29.3 million and $131.5 million for the first nine months of 1996 and 1997, respectively for the construction of the Company's existing facilities, the Cold Mill Project, the Caster Project, and Iron Dynamics. Cash provided by financing activities totaled approximately $24.5 million and $28.0 million for the third quarter of 1996 and 1997, respectively, and approximately $101.0 million and $25.8 million for the first nine months of 1996 and 1997, respectively. The 1996 increase in cash provided by financing activities primarily relates to the approximately $35.2 million of proceeds from senior term debt and $70.5 million of proceeds from common stock issuance. The 1997 increase in cash provided by financing activities primarily relates to $30.0 million of proceeds from common stock issuance. Effective as of June 30, 1997, the Company completed an amendment to the Credit Agreement, which replaced its previous $345.0 million credit facility. The Credit Agreement consists of a $450.0 million credit facility, composed of a $250.0 million five-year revolving credit facility (subject to a borrowing base), $100.0 million 364-day revolving credit facility (subject to extension if approved by all of the lenders, or, if not, converted into a five-year term loan amortizable in equal quarterly installments during the final two years of the five-year term loan period), and a $100.0 million term loan amortizable in equal quarterly installments during the final two years of the term loan period, commencing September 30, 2002. The Credit Agreement is secured by substantially all of the Company's assets (other than as permitted to be excluded in order to secure the IDI Financing). Borrowings under the Credit Agreement bear interest at floating rates. The Company entered into an interest rate swap agreement on a notional amount of $100.0 million pursuant to which the Company has agreed to make fixed rate payments at 6.935% and will receive LIBOR payments. The maturity date of the interest rate swap agreement is July 2, 2001. The counterparty has the right to extend the maturity date to July 2, 2004 at predetermined interest rates. As a result of the substantial modifications with the amendment to the Credit Agreement, which was completed on July 9, 1997, the Company incurred an extraordinary loss of approximately $7.6 million (net of a tax benefit of approximately $5.1 million) related to prepayment penalties and the write-off of the financing costs associated with the originally negotiated credit facility. As of September 30, 1997, the Company's long-term debt (including the current portion) was approximately $203.6 million. Approximately 74% of this indebtedness bears interest at floating rates. The Company raised approximately $29.6 million (net of expenses) with a public offering in August 1997. As of September 30, 1997, the Company had approximately $15.1 of the offering proceeds million invested in short-term cash investments. In addition to the approximate $14.5 million already expended, this remaining cash will be used for capital and working capital needs through the end of the year. 7 10 ENVIRONMENTAL EXPENDITURES AND OTHER CONTINGENCIES SDI has incurred and, in the future, will continue to incur capital expenditures and operating expenses for matters relating to environmental control, remediation, monitoring and compliance. Steel Dynamics believes that compliance with current environmental laws and regulations is not likely to have a material adverse effect on the Company's financial condition, results of operations or liquidity; however, environmental laws and regulations have changed rapidly in recent years and SDI may become subject to more stringent environmental laws and regulations in the future. INFLATION SDI does not believe that inflation has had a material effect on its results of operations. 8 11 PART II OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (A) Exhibits - Exhibit 11.1 Statement of Computation of Earnings per Share (page 10) (B) Reports on Form 8-K for the quarter ended June 30, 1997 - None Item 1 - 5 are not applicable for this reporting period and have been omitted. SIGNATURE Pursuant to the requirements of Section 13 or 15(d) of Securities Exchange Act of 1934, Steel Dynamics, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. November 6, 1997 By: /s/ Tracy L. Shellabarger TRACY L. SHELLABARGER VICE PRESIDENT AND CHIEF FINANCIAL OFFICER (Principal Financial and Accounting Officer And Duly Authorized Officer) 9 EX-11.1 2 STATEMENT OF COMPUTATION OF EARNINGS PER SHARE 1 Statement re: Computation of Per Share Earnings EXHIBIT 11.1 STEEL DYNAMICS, INC. COMPUTATION OF NET INCOME (LOSS) PER SHARE (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED NINE MONTHS ENDED --------------------------------- ---------------------------------- SEPTEMBER 28, SEPTEMBER 30, SEPTEMBER 28, SEPTEMBER 30, 1996 1997 1996 1997 ------------- ------------- ------------- ------------- Weighted average shares outstanding ............... 34,549 48,540 32,048 48,080 Adjustment for Staff Accounting Bulletin No. 83 ... 3,892 3,892 Dilutive effect for options and warrants .......... N/A(a) N/A(a) N/A (a) N/A(a) ------- ------- ------- ------- Adjusted weighted average shares outstanding ...... 38,441 48,540 35,940 48,080 ======= ======= ======= ======= Net income (loss) ................................. $ 4,294 $ 5,413 $(9,818) $35,567 ======= ======= ======= ======= Net income (loss) per share ....................... $ .11(b) $ .11(b) $ (0.27)(b) $ .74(b) ======= ======= ======= =======
(a) Net income (loss) per share for the quarters ended September 28, 1996 and September 30, 1997 were calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding including the anti-dilutive effect of shares issued from September 23, 1995 through September 23, 1996 using the treasury stock method. Net income per share for the three and nine months ended September 30, 1997 excludes the anti-dilutive effect of common stock equivalents. (b) Fully diluted earnings per share is the same as primary earnings per share. 10 EX-27 3 FINANCIAL DATA SCHEDULE
5 1 U.S. DOLLARS 9-MOS DEC-31-1997 JAN-01-1997 SEP-30-1997 1 15,089,795 0 42,770,562 641,050 53,798,415 130,552,335 487,544,566 33,132,852 598,459,509 56,660,108 0 0 0 491,311 329,585,005 598,459,509 305,479,968 307,362,525 231,182,000 251,131,000 0 0 5,480,387 50,641,887 7,452,041 43,189,846 0 (7,623,910) 0 35,565,936 .74 .74
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