AK STEEL HOLDING CORPORATION |
(Exact name of registrant as specified in its charter) |
Commission File No. 1-13696 |
Delaware | 31-1401455 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) | |
9227 Centre Pointe Drive West Chester, OH | 45069 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Solicitation material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. | ||
(d) | Exhibit: | ||
99.1 | Press Release issued on October 25, 2011 |
AK STEEL HOLDING CORPORATION | ||
By: | /s/ David C. Horn | |
David C. Horn | ||
Secretary |
Exhibit No. | Description | |||
99.1 | Press Release issued on October 25, 2011 |
Exhibit 99.1 | ||
News Release | ||
Contacts: Media - Alan H. McCoy, Vice President, Government & Public Relations (513) 425-2826 | ||
Investors - Albert E. Ferrara, Jr., Senior Vice President, Finance & CFO (513) 425-2888 |
(dollars in millions, except per ton data) | Three Months Ended September 30, | ||
Reconciliation to Operating Profit (Loss) | 2011 | ||
Adjusted operating profit (loss) | $ | 21.2 | |
Butler Works furnace incident | (9.8 | ) | |
Operating profit (loss) | $ | 11.4 | |
Reconciliation to Operating Profit (Loss) per Ton | |||
Adjusted operating profit (loss) per ton | $ | 15 | |
Butler Works furnace incident | (7 | ) | |
Operating profit (loss) per ton | $ | 8 |
AK STEEL HOLDING CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars and shares in millions, except per share and per ton data) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Shipments (000 tons) | 1,368.8 | 1,465.8 | 4,288.9 | 4,301.0 | ||||||||||||
Selling price per ton | $ | 1,158 | $ | 1,075 | $ | 1,151 | $ | 1,064 | ||||||||
Net sales | $ | 1,585.8 | $ | 1,575.9 | $ | 4,958.8 | $ | 4,577.7 | ||||||||
Cost of products sold | 1,472.6 | 1,576.1 | 4,555.1 | 4,247.7 | ||||||||||||
Selling and administrative expenses | 55.7 | 52.0 | 165.0 | 158.8 | ||||||||||||
Depreciation | 46.1 | 50.3 | 139.3 | 150.5 | ||||||||||||
Total operating costs | 1,574.4 | 1,678.4 | 4,859.4 | 4,557.0 | ||||||||||||
Operating profit (loss) | 11.4 | (102.5 | ) | 99.4 | 20.7 | |||||||||||
Interest expense | 13.5 | 5.9 | 33.7 | 25.9 | ||||||||||||
Other income (expense) | (4.7 | ) | 8.0 | (1.3 | ) | (5.8 | ) | |||||||||
Income (loss) before income taxes | (6.8 | ) | (100.4 | ) | 64.4 | (11.0 | ) | |||||||||
Income tax provision due to tax law change | — | — | 2.0 | 25.3 | ||||||||||||
Income tax provision (benefit) | (0.7 | ) | (40.4 | ) | 27.6 | (4.1 | ) | |||||||||
Total income tax provision (benefit) | (0.7 | ) | (40.4 | ) | 29.6 | 21.2 | ||||||||||
Net income (loss) | (6.1 | ) | (60.0 | ) | 34.8 | (32.2 | ) | |||||||||
Less: Net loss attributable to noncontrolling interests | (2.6 | ) | (0.8 | ) | (3.5 | ) | (1.6 | ) | ||||||||
Net income (loss) attributable to AK Steel Holding Corporation | $ | (3.5 | ) | $ | (59.2 | ) | $ | 38.3 | $ | (30.6 | ) | |||||
Basic and diluted earnings per share: | ||||||||||||||||
Net income (loss) attributable to AK Steel Holding Corporation | $ | (0.03 | ) | $ | (0.54 | ) | $ | 0.35 | $ | (0.28 | ) | |||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 109.8 | 109.5 | 109.8 | 109.5 | ||||||||||||
Diluted | 109.8 | 109.5 | 109.9 | 109.5 | ||||||||||||
Dividends declared and paid per share | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0.15 |
AK STEEL HOLDING CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions, except per share amounts) | ||||||||
September 30, 2011 | December 31, 2010 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 58.7 | $ | 216.8 | ||||
Accounts receivable, net | 590.4 | 482.8 | ||||||
Inventory, net | 783.2 | 448.7 | ||||||
Other current assets | 256.1 | 255.8 | ||||||
Total current assets | 1,688.4 | 1,404.1 | ||||||
Property, plant and equipment | 5,899.3 | 5,668.2 | ||||||
Accumulated depreciation | (3,774.2 | ) | (3,635.0 | ) | ||||
Property, plant and equipment, net | 2,125.1 | 2,033.2 | ||||||
Other non-current assets | 766.9 | 751.3 | ||||||
TOTAL ASSETS | $ | 4,580.4 | $ | 4,188.6 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under credit facility | $ | 295.0 | $ | — | ||||
Accounts payable | 732.5 | 553.1 | ||||||
Accrued liabilities | 182.3 | 145.0 | ||||||
Current portion of long-term debt | 0.7 | 0.7 | ||||||
Current portion of pension and other postretirement benefit obligations | 111.6 | 145.7 | ||||||
Total current liabilities | 1,322.1 | 844.5 | ||||||
Long-term debt | 650.2 | 650.6 | ||||||
Pension and other postretirement benefit obligations | 1,472.2 | 1,706.0 | ||||||
Other non-current liabilities | 516.5 | 346.4 | ||||||
TOTAL LIABILITIES | 3,961.0 | 3,547.5 | ||||||
Stockholders’ equity: | ||||||||
Common stock, authorized 200,000,000 shares of $.01 par value each; issued 123,214,432 and 122,829,975 shares in 2011 and 2010; outstanding 110,271,878 and 109,986,790 shares in 2011 and 2010 | 1.2 | 1.2 | ||||||
Additional paid-in capital | 1,921.0 | 1,909.4 | ||||||
Treasury stock, common shares at cost, 12,942,554 and 12,843,185 shares in 2011 and 2010 | (171.5 | ) | (170.1 | ) | ||||
Accumulated deficit | (1,166.6 | ) | (1,188.4 | ) | ||||
Accumulated other comprehensive income | 44.5 | 92.6 | ||||||
Total AK Steel Holding Corporation stockholders’ equity | 628.6 | 644.7 | ||||||
Noncontrolling interests | (9.2 | ) | (3.6 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 619.4 | 641.1 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,580.4 | $ | 4,188.6 |
AK STEEL HOLDING CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions) | ||||||||
Nine Months Ended September 30, | ||||||||
2011 | 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | 34.8 | $ | (32.2 | ) | |||
Depreciation | 139.3 | 150.5 | ||||||
Amortization | 11.7 | 14.1 | ||||||
Deferred income taxes | 28.2 | 25.5 | ||||||
Contributions to pension trust | (170.0 | ) | (110.0 | ) | ||||
Contributions to Middletown and Butler retirees VEBAs | (87.6 | ) | (65.0 | ) | ||||
Pension and other postretirement benefit payments greater than expense | (85.5 | ) | (78.3 | ) | ||||
Working capital | (202.5 | ) | (100.1 | ) | ||||
Working capital—SunCoke Middletown | (11.1 | ) | 0.3 | |||||
Other operating items, net | (12.7 | ) | 18.7 | |||||
Net cash flows from operating activities | (355.4 | ) | (176.5 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital investments | (88.0 | ) | (72.3 | ) | ||||
Capital investments—SunCoke Middletown | (163.2 | ) | (86.4 | ) | ||||
Other investing items, net | 0.7 | 0.8 | ||||||
Net cash flows from investing activities | (250.5 | ) | (157.9 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net borrowings under credit facility | 295.0 | — | ||||||
Proceeds from issuance of long-term debt | — | 400.0 | ||||||
Redemption of long-term debt | (0.5 | ) | (506.1 | ) | ||||
Debt issuance costs | (9.2 | ) | (9.0 | ) | ||||
Proceeds from exercise of stock options | 0.2 | 1.3 | ||||||
Purchase of treasury stock | (1.4 | ) | (7.7 | ) | ||||
Common stock dividends paid | (16.5 | ) | (16.5 | ) | ||||
Advances from noncontrolling interest owner to SunCoke Middletown | 180.3 | 88.4 | ||||||
Other financing items, net | (0.1 | ) | 2.8 | |||||
Net cash flows from financing activities | 447.8 | (46.8 | ) | |||||
Net decrease in cash and cash equivalents | (158.1 | ) | (381.2 | ) | ||||
Cash and cash equivalents, beginning of period | 216.8 | 461.7 | ||||||
Cash and cash equivalents, end of period | $ | 58.7 | $ | 80.5 |
AK STEEL HOLDING CORPORATION | ||||||||||||
STEEL SHIPMENTS | ||||||||||||
(Unaudited) | ||||||||||||
(Tons in thousands) | ||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Tons Shipped by Product | ||||||||||||
Stainless/electrical | 229.3 | 226.9 | 699.4 | 657.9 | ||||||||
Coated | 577.2 | 624.4 | 1,830.3 | 1,944.8 | ||||||||
Cold-rolled | 278.3 | 322.5 | 941.2 | 889.0 | ||||||||
Tubular | 32.4 | 33.2 | 99.4 | 94.5 | ||||||||
Subtotal value-added shipments | 1,117.2 | 1,207.0 | 3,570.3 | 3,586.2 | ||||||||
Hot-rolled | 222.6 | 213.6 | 622.2 | 591.4 | ||||||||
Secondary | 29.0 | 45.2 | 96.4 | 123.4 | ||||||||
Subtotal non value-added shipments | 251.6 | 258.8 | 718.6 | 714.8 | ||||||||
Total shipments | 1,368.8 | 1,465.8 | 4,288.9 | 4,301.0 | ||||||||
Shipments by Product (%) | ||||||||||||
Stainless/electrical | 16.7 | % | 15.5 | % | 16.3 | % | 15.3 | % | ||||
Coated | 42.2 | % | 42.6 | % | 42.7 | % | 45.2 | % | ||||
Cold-rolled | 20.3 | % | 22.0 | % | 22.0 | % | 20.7 | % | ||||
Tubular | 2.4 | % | 2.3 | % | 2.3 | % | 2.2 | % | ||||
Subtotal value-added shipments | 81.6 | % | 82.4 | % | 83.3 | % | 83.4 | % | ||||
Hot-rolled | 16.3 | % | 14.6 | % | 14.5 | % | 13.8 | % | ||||
Secondary | 2.1 | % | 3.0 | % | 2.2 | % | 2.8 | % | ||||
Subtotal non value-added shipments | 18.4 | % | 17.6 | % | 16.7 | % | 16.6 | % | ||||
Total shipments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |