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 January 24, 2012 |
AK STEEL HOLDING CORPORATION | ||
By: | /s/ David C. Horn | |
David C. Horn | ||
Secretary |
Exhibit No. | Description | |||
99.1 | Press Release issued on January 24, 2012 |
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 December 31, 2011 | Twelve Months Ended December 31, 2011 | |||||
Reconciliation to Operating Profit (Loss) | |||||||
Adjusted operating profit (loss) | $ | (32.6 | ) | $ | 66.8 | ||
Pension corridor charge | (268.1 | ) | (268.1 | ) | |||
Operating profit (loss) | $ | (300.7 | ) | $ | (201.3 | ) | |
Reconciliation to Operating Profit (Loss) per Ton | |||||||
Adjusted operating profit (loss) per ton | $ | (23 | ) | $ | 12 | ||
Pension corridor charge | (190 | ) | (47 | ) | |||
Operating profit (loss) per ton | $ | (213 | ) | $ | (35 | ) | |
Reconciliation to Net Income (Loss) Attributable to AK Steel Holding | |||||||
Adjusted net income (loss) attributable to AK Steel Holding Corporation | $ | (28.0 | ) | $ | 10.3 | ||
Pension corridor charge ($268.1 less tax of $102.2) | (165.9 | ) | (165.9 | ) | |||
Net income (loss) attributable to AK Steel Holding Corporation, as reported | $ | (193.9 | ) | $ | (155.6 | ) | |
Reconciliation to Basic and Diluted Earnings (Losses) per Share | |||||||
Adjusted basic and diluted earnings (losses) per share | $ | (0.26 | ) | $ | 0.09 | ||
Pension corridor charge | (1.50 | ) | (1.50 | ) | |||
Basic and diluted earnings (losses) per share, as reported | $ | (1.76 | ) | $ | (1.41 | ) |
AK STEEL HOLDING CORPORATION | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Dollars and shares in millions, except per share and per ton data) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Shipments (000 tons) | 1,409.9 | 1,359.9 | 5,698.8 | 5,660.9 | ||||||||||||
Selling price per ton | $ | 1,070 | $ | 1,022 | $ | 1,131 | $ | 1,054 | ||||||||
Net sales | $ | 1,509.2 | $ | 1,390.6 | $ | 6,468.0 | $ | 5,968.3 | ||||||||
Cost of products sold (exclusive of items shown below) | 1,451.6 | 1,379.5 | 6,036.8 | 5,643.2 | ||||||||||||
Selling and administrative expenses (exclusive of items shown below) | 53.8 | 50.4 | 215.4 | 204.0 | ||||||||||||
Depreciation | 45.7 | 46.6 | 185.0 | 197.1 | ||||||||||||
Pension and OPEB expense (income) (exclusive of corridor charge shown below) | (9.3 | ) | (4.1 | ) | (36.0 | ) | (14.9 | ) | ||||||||
Pension corridor charge | 268.1 | — | 268.1 | — | ||||||||||||
Special and unusual items | — | 72.8 | — | 72.8 | ||||||||||||
Total operating costs | 1,809.9 | 1,545.2 | 6,669.3 | 6,102.2 | ||||||||||||
Operating profit (loss) | (300.7 | ) | (154.6 | ) | (201.3 | ) | (133.9 | ) | ||||||||
Interest expense | 13.8 | 7.1 | 47.5 | 33.0 | ||||||||||||
Other income (expense) | (4.0 | ) | (1.8 | ) | (5.3 | ) | (7.6 | ) | ||||||||
Income (loss) before income taxes | (318.5 | ) | (163.5 | ) | (254.1 | ) | (174.5 | ) | ||||||||
Income tax provision due to tax law change | — | — | 2.0 | 25.3 | ||||||||||||
Income tax provision (benefit) | (123.6 | ) | (65.0 | ) | (96.0 | ) | (69.1 | ) | ||||||||
Total income tax provision (benefit) | (123.6 | ) | (65.0 | ) | (94.0 | ) | (43.8 | ) | ||||||||
Net income (loss) | (194.9 | ) | (98.5 | ) | (160.1 | ) | (130.7 | ) | ||||||||
Less: Net loss attributable to noncontrolling interests | (1.0 | ) | (0.2 | ) | (4.5 | ) | (1.8 | ) | ||||||||
Net income (loss) attributable to AK Steel Holding Corporation | $ | (193.9 | ) | $ | (98.3 | ) | $ | (155.6 | ) | $ | (128.9 | ) | ||||
Basic and diluted earnings per share: | ||||||||||||||||
Net income (loss) attributable to AK Steel Holding Corporation | $ | (1.76 | ) | $ | (0.89 | ) | $ | (1.41 | ) | $ | (1.17 | ) | ||||
Weighted-average shares outstanding: | ||||||||||||||||
Basic | 109.8 | 109.6 | 109.8 | 109.6 | ||||||||||||
Diluted | 109.8 | 109.6 | 109.8 | 109.6 | ||||||||||||
Dividends declared and paid per share | $ | 0.05 | $ | 0.05 | $ | 0.20 | $ | 0.20 | ||||||||
AK STEEL HOLDING CORPORATION | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions, except per share amounts) | ||||||||
December 31, 2011 | December 31, 2010 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 42.0 | $ | 216.8 | ||||
Accounts receivable, net | 564.2 | 482.8 | ||||||
Inventory, net | 418.7 | 448.7 | ||||||
Other current assets | 249.5 | 255.8 | ||||||
Total current assets | 1,274.4 | 1,404.1 | ||||||
Property, plant and equipment | 5,967.2 | 5,668.2 | ||||||
Accumulated depreciation | (3,797.0 | ) | (3,635.0 | ) | ||||
Property, plant and equipment, net | 2,170.2 | 2,033.2 | ||||||
Other non-current assets | 1,005.3 | 751.3 | ||||||
TOTAL ASSETS | $ | 4,449.9 | $ | 4,188.6 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Borrowings under credit facility | $ | 250.0 | $ | — | ||||
Accounts payable | 583.6 | 553.1 | ||||||
Accrued liabilities | 172.8 | 145.0 | ||||||
Current portion of long-term debt | 0.7 | 0.7 | ||||||
Current portion of pension and other postretirement benefit obligations | 130.0 | 145.7 | ||||||
Total current liabilities | 1,137.1 | 844.5 | ||||||
Long-term debt | 650.0 | 650.6 | ||||||
Pension and other postretirement benefit obligations | 1,744.8 | 1,706.0 | ||||||
Other non-current liabilities | 540.8 | 346.4 | ||||||
TOTAL LIABILITIES | 4,072.7 | 3,547.5 | ||||||
Stockholders’ equity: | ||||||||
Common stock, authorized 200,000,000 shares of $.01 par value each; issued 123,229,210 and 122,829,975 shares in 2011 and 2010; outstanding 110,284,228 and 109,986,790 shares in 2011 and 2010 | 1.2 | 1.2 | ||||||
Additional paid-in capital | 1,922.2 | 1,909.4 | ||||||
Treasury stock, common shares at cost, 12,944,982 and 12,843,185 shares in 2011 and 2010 | (171.6 | ) | (170.1 | ) | ||||
Accumulated deficit | (1,366.0 | ) | (1,188.4 | ) | ||||
Accumulated other comprehensive income | 2.7 | 92.6 | ||||||
Total AK Steel Holding Corporation stockholders’ equity | 388.5 | 644.7 | ||||||
Noncontrolling interests | (11.3 | ) | (3.6 | ) | ||||
TOTAL STOCKHOLDERS’ EQUITY | 377.2 | 641.1 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 4,449.9 | $ | 4,188.6 | ||||
AK STEEL HOLDING CORPORATION | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(Dollars in millions) | ||||||||
Twelve Months Ended December 31, | ||||||||
2011 | 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income (loss) | $ | (160.1 | ) | $ | (130.7 | ) | ||
Special and unusual items | — | 72.8 | ||||||
Pension corridor charge | 268.1 | — | ||||||
Depreciation | 185.0 | 197.1 | ||||||
Amortization | 15.5 | 16.8 | ||||||
Deferred income taxes | (92.7 | ) | (37.7 | ) | ||||
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 | (114.7 | ) | (104.7 | ) | ||||
Working capital | 1.0 | (9.2 | ) | |||||
Working capital—SunCoke Middletown | (9.3 | ) | 0.3 | |||||
Other operating items, net | (15.7 | ) | 37.9 | |||||
Net cash flows from operating activities | (180.5 | ) | (132.4 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Capital investments | (101.1 | ) | (117.1 | ) | ||||
Capital investments—SunCoke Middletown | (195.0 | ) | (149.2 | ) | ||||
Investments in Magnetation LLC and AK Coal Resources | (125.4 | ) | — | |||||
Other investing items, net | 1.3 | — | ||||||
Net cash flows from investing activities | (420.2 | ) | (266.3 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net borrowings under credit facility | 250.0 | — | ||||||
Proceeds from issuance of long-term debt | — | 549.1 | ||||||
Redemption of long-term debt | (0.7 | ) | (506.3 | ) | ||||
Debt issuance costs | (10.1 | ) | (11.3 | ) | ||||
Proceeds from exercise of stock options | 0.2 | 1.3 | ||||||
Purchase of treasury stock | (1.5 | ) | (7.9 | ) | ||||
Common stock dividends paid | (22.0 | ) | (22.0 | ) | ||||
Advances from noncontrolling interest owner to SunCoke Middletown | 210.7 | 151.7 | ||||||
Other financing items, net | (0.7 | ) | (0.8 | ) | ||||
Net cash flows from financing activities | 425.9 | 153.8 | ||||||
Net decrease in cash and cash equivalents | (174.8 | ) | (244.9 | ) | ||||
Cash and cash equivalents, beginning of period | 216.8 | 461.7 | ||||||
Cash and cash equivalents, end of period | $ | 42.0 | $ | 216.8 | ||||
AK STEEL HOLDING CORPORATION | ||||||||||||
STEEL SHIPMENTS | ||||||||||||
(Unaudited) | ||||||||||||
(Tons in thousands) | ||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Tons Shipped by Product | ||||||||||||
Stainless/electrical | 200.9 | 208.1 | 900.3 | 866.0 | ||||||||
Coated | 611.2 | 613.6 | 2,441.5 | 2,558.4 | ||||||||
Cold-rolled | 262.9 | 352.2 | 1,204.1 | 1,241.2 | ||||||||
Tubular | 30.7 | 29.3 | 130.1 | 123.8 | ||||||||
Subtotal value-added shipments | 1,105.7 | 1,203.2 | 4,676.0 | 4,789.4 | ||||||||
Hot-rolled | 251.3 | 114.9 | 873.5 | 706.3 | ||||||||
Secondary | 52.9 | 41.8 | 149.3 | 165.2 | ||||||||
Subtotal non value-added shipments | 304.2 | 156.7 | 1,022.8 | 871.5 | ||||||||
Total shipments | 1,409.9 | 1,359.9 | 5,698.8 | 5,660.9 | ||||||||
Shipments by Product (%) | ||||||||||||
Stainless/electrical | 14.2 | % | 15.3 | % | 15.8 | % | 15.3 | % | ||||
Coated | 43.4 | % | 45.1 | % | 42.9 | % | 45.2 | % | ||||
Cold-rolled | 18.6 | % | 25.9 | % | 21.1 | % | 21.9 | % | ||||
Tubular | 2.2 | % | 2.2 | % | 2.3 | % | 2.2 | % | ||||
Subtotal value-added shipments | 78.4 | % | 88.5 | % | 82.1 | % | 84.6 | % | ||||
Hot-rolled | 17.8 | % | 8.4 | % | 15.3 | % | 12.5 | % | ||||
Secondary | 3.8 | % | 3.1 | % | 2.6 | % | 2.9 | % | ||||
Subtotal non value-added shipments | 21.6 | % | 11.5 | % | 17.9 | % | 15.4 | % | ||||
Total shipments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||
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