Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the
Company”), a leading Canadian producer of hot and cold rolled steel
sheet and plate products, today announced results for its fiscal
fourth quarter and full year ended March 31, 2022.
Unless otherwise specified, all amounts are in
Canadian dollars.
Business Highlights and Fiscal 2022 to Fiscal 2021
Fourth Quarter Comparisons
- Consolidated revenue of $941.8
million, up 47.5% from $638.5 million in the prior-year
quarter.
- Consolidated income from operations
of $310.6 million, compared to $130.0 million in the prior-year
quarter.
- Net income of $242.9 million,
compared to $100.1 million in the prior-year quarter.
- Adjusted EBITDA of $334.4 million
and Adjusted EBITDA margin of 35.5%, compared to $166.9 million and
26.1% in the prior-year quarter (See “Non-IFRS Measures”
below).
- Cash flows generated from operations
of $443.8 million, compared to $133.9 million in the prior-year
quarter.
- Shipments of 547,217 tons, down from
621,843 tons in the prior-year quarter.
- Paid first quarterly dividend of
US$0.05/share.
- Launched Normal Course Issuer Bid in
March.
Fiscal 2022 to Fiscal 2021 Full Year
Comparisons
- Consolidated revenue of $3,806.0
million, up 112.0% from $1,794.9 million the prior-year.
- Consolidated income from operations
of $1,411.0 million, up from $84.8 million the prior-year.
- Net income of $857.7 million,
compared to a net loss of $76.1 million the prior-year.
- Adjusted EBITDA of $1,503.2 million
and Adjusted EBITDA margin of 39.5%, compared to $199.2 million and
11.1% the prior-year (See “Non-IFRS Measures” below).
- Cash flows generated from operations
of $1,263.4 million, compared to $8.1 million the prior-year.
- Shipments of 2,297,159 tons, compare
to 2,102,086 tons the prior-year.
Michael Garcia, the Company’s Chief Executive
Officer, commented, “Our strong results for the fiscal fourth
quarter capped off an incredible year at Algoma, one that produced
record revenues, profitability and cash flows. Relentless execution
by the entire team delivered these strong results across what was
truly a tumultuous year for both steel and raw material markets. It
is through this hard work and dedication that we have positioned
ourselves to drive additional value creation for our shareholders
on two fronts simultaneously. Our transformational electric arc
furnace project is advancing as planned towards a 2024 startup, and
today we are announcing the next phase of our capital allocation
program with a US$400 million substantial issuer bid which would
represent roughly a third of today’s market capitalization.”
Mr. Garcia continued, “I would like to
personally thank Mike McQuade for his outstanding leadership over
the critically important last three years at Algoma, and look
forward to his continued mentorship and guidance in his continuing
role as a member of the board. The future for Algoma has never
looked brighter, and I am honored to have been chosen to be at the
helm during these exciting times.”
Fourth Quarter Fiscal 2022 Financial
Results
Fourth quarter revenue totaled $941.8 million,
up 47.5% from $638.5 million in the prior-year quarter. As compared
with the prior-year quarter, steel revenue was $879.9 million, up
50.2% from $585.6 million, and revenue per ton of steel sold was
$1,721, up 67.6% from $1,027.
Income from operations was $310.6 million,
compared to $130.0 million in the prior-year quarter. The year over
year increase was primarily due to an increase in the selling price
of steel, partially offset by an increase in the purchase price of
inputs, including iron ore, scrap and alloys.
Net income in the fourth quarter was $242.9
million, compared to $100.1 million in the prior-year quarter. The
improvement was driven primarily by the factors described above
under income from operations.
Adjusted EBITDA in the fourth quarter was $334.4
million, compared with $166.9 million for the prior-year quarter.
This resulted in an Adjusted EBITDA margin of 35.5%. Average
realized price of steel net of freight and non-steel revenue was
$1,608 per ton, up 70.7% from $942 per ton in the prior-year
quarter. Cost per ton of steel products sold was $947, up 47.4%
from $643 in the prior-year quarter. Shipments for the fourth
quarter decreased by 12.0% to 547,217 tons, compared to 621,843
tons in the prior-year quarter. See “Non-IFRS Measures” below for
an explanation of Adjusted EBITDA and a reconciliation of Adjusted
EBITDA to net income.
Full Year Fiscal 2022 Financial
Results
Full year revenue totaled $3,806.0 million, up
112.0% from $1,794.9 million the prior-year. As compared with 2021,
steel revenue was $3,548.8 million, up 119.7% from $1,615.1
million, and revenue per ton of steel sold was $1,657, up 94.0%
from $854.
Income from operations was $1,411.0 million,
compared to $84.8 million the prior-year. The year over year
increase was primarily due to an increase in the selling price of
steel, partially offset by an increase in the purchase price of
inputs, including iron ore, scrap and alloys, as well as increases
in employee profit sharing.
Net income for the year was $857.7 million,
compared to a net loss of $76.1 million in 2021. The improvement
was driven primarily by the factors described above under income
from operations offset by listing expenses and transaction costs
associated with the merger with Legato Merger Corp. and higher
income taxes.
Adjusted EBITDA for the full year was $1,503.2
million, compared with $199.2 million for the prior-year. This
resulted in an Adjusted EBITDA margin of 39.5%. Average realized
price of steel net of freight and non-steel revenue was $1,545 per
ton, up 101.2% from $768 per ton in the prior-year. Cost per ton of
steel products sold was $857, up 32.7% from $646 in the prior-year.
Shipments for the year increased by 9.3% to 2,297,159 tons,
compared to 2,102,086 tons in the prior-year. See “Non-IFRS
Measures” below for an explanation of Adjusted EBITDA and a
reconciliation of Adjusted EBITDA to net income.
Normal Course Issuer Bid
On March 3, 2022 the Company announced the
commencement of a normal course issuer bid (“NCIB”) after receiving
approval from the Toronto Stock Exchange (“TSX”), authorizing the
Company to acquire up to a maximum of 7,397,889 shares, or 5% of
its issued and outstanding shares as of February 18, 2022, subject
to a maximum of 16,586 shares per day on the TSX and 300,000 on
NASDAQ. The NCIB expires on March 2, 2023 if not fully exercised.
No shares were repurchased under the NCIB during the fiscal year
ended March 31, 2022. Subsequent to March 31, 2022, as at May 31
2022, the company has acquired and cancelled 1,089,691 shares under
the NCIB. The Company will be suspending share repurchases under
the NCIB until after the expiration of the proposed substantial
issuer bid.
Substantial Issuer Bid
The Company announced today that it intends to
commence a US$400 million substantial issuer bid ("SIB"), as part
of its overall capital allocation strategy, under which the Company
plans to offer to purchase for cancellation from shareholders up to
US$400 million of the Company’s outstanding common shares by way of
a “modified Dutch auction” which will permit shareholders to
choose, within the pricing range determined by the Company, the
number of shares and the price at which they wish to tender such
shares, with the purchase price for all tendering shareholders
being the lowest purchase price per share that will enable the
Company to purchase the maximum number of shares properly tendered
to the offer, up to US$400 million. The Company believes that the
SIB represents an equitable and efficient means of providing value
to its shareholders. The pricing range of the SIB and further
details will be announced separately, prior to the commencement of
the SIB, which is anticipated to occur prior to the end of
June.
Electric Arc Furnace
In November 2021, the Board of Directors
authorized the Company to construct two new state-of-the-art
electric arc furnaces (“EAF”) to replace its existing blast furnace
and basic oxygen steelmaking operations. The $700 million project
is expected to take two years to complete and is advancing as
expected. Following the transformation to EAF steelmaking, Algoma’s
facility is anticipated to have an annual raw steel production
capacity of approximately 3.7 million tons, which would match its
downstream finishing capacity, and would be expected to reduce the
Company’s annual carbon emissions by approximately 70%.
Quarterly Dividend
The Company’s board of directors has declared a
regular quarterly dividend in the amount of US$0.05 on each common
share outstanding, payable on July 15, 2022 to holders of record of
common shares of the Corporation as of the close of business on
June 27, 2022. This dividend is designated as an “eligible
dividend” for Canadian income tax purposes.
Outlook
The outlook that follows constitutes
forward-looking statements (as defined below) and is based on a
number of assumptions and subject to a number of risks. Actual
results could vary materially as a result of numerous factors,
including certain risk factors, many of which are beyond our
control. Please see “Cautionary Statement Regarding Forward-Looking
Statements” below.
In addition to the other assumptions and factors
described in this news release, our outlook assumes continued high
prices of steel, ongoing inflationary pressures on raw material
inputs, labor, and logistics costs, and the absence of material
changes in our industry or the global economy. The following
statements supersede all prior statements made by us and are based
on current expectations.
Based on our current information regarding our
operations and end markets, we currently expect the following for
the first quarter of fiscal 2023:
- Adjusted
EBITDA*: $335 million to $355 million
*See Non-IFRS Financial Measures.
Conference Call and Webcast
Details
A webcast and conference call will be held on
Wednesday, June 15, 2022 at 11:00 a.m. Eastern time to review the
Company’s fiscal fourth quarter and full year results, discuss
recent events, and conduct a question-and-answer session.
The live webcast and archived replay of the
conference call can be accessed on the Investors section of the
Company’s website at www.algoma.com. For those unable to access the
webcast, the conference call will be accessible domestically or
internationally by dialing 877-425-9470 or 201-389-0878,
respectively. Upon dialing in, please request to join the Algoma
Steel Fourth Quarter Conference Call. To access the replay of the
call, dial 844-512-2921 (domestic) or 412-317-6671 (international)
with passcode 13730393.
Consolidated Financial Statements and
Management's Discussion and Analysis
The Company's audited condensed interim
consolidated financial statements for the three and twelve months
ended March 31, 2022, and Management's Discussion & Analysis
thereon are available under the Company’s profile on EDGAR at
www.sec.gov and under the Company's profile on SEDAR at
www.sedar.com.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains “forward-looking
information” under applicable Canadian securities legislation and
“forward-looking statements” within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995 (collectively, “forward
looking statements”), including statements regarding Algoma’s
strategic objectives, Algoma’s expectation to pay a quarterly
dividend, value creation for Algoma’s shareholders, the launch of
the SIB, the expected timing of the EAF transformation and the
resulting increase in raw steel production capacity and reduction
in carbon emissions and Adjusted EBITDA guidance for the first
quarter of fiscal 2023. These forward-looking statements generally
are identified by the words “believe,” “project,” “expect,”
“anticipate,” “estimate,” “intend,” “strategy,” “future,”
“opportunity,” “plan,” “pipeline,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Forward-looking statements are predictions,
projections and other statements about future events that are based
on current expectations and assumptions. Many factors could cause
actual future events to differ materially from the forward-looking
statements in this document, including but not limited to, the
risks that Algoma will be unable to realize its business plans and
strategic objectives, including its investment in EAF steelmaking
and the retirement of certain secured long term debt; the risks
associated with the steel industry generally; Algoma’s ability to
continue to pay a quarterly dividend; the impact of share price
volatility on the SIB; receipt of regulatory approvals for the
offer documents; risk that the SIB will not be completed on the
terms described in this press release (including the price range
and number of shares Algoma may purchase under the SIB) or at all;
and changes in general economic conditions, including as a result
of the COVID-19 pandemic, inflation and the ongoing conflict in
Ukraine. The foregoing list of factors is not exhaustive and
readers should also consider the other risks and uncertainties set
forth in the section entitled “Risk Factors” and “Cautionary Note
Regarding Forward-Looking Statements” in Algoma’s public filings,
including the registration statement on Form F-1 filed by Algoma
with the Securities and Exchange Commission (“SEC”) and the
prospectus filed by Algoma with the SEC and the Ontario Securities
Commission (“OSC”), and, once available, in Algoma’s annual report
on Form 20-F. Forward-looking statements speak only as of the date
they are made. Readers are cautioned not to put undue reliance on
forward-looking statements, and Algoma assumes no obligation and
does not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise.
IMPORTANT INFORMATION FOR
SHAREHOLDERS
The SIB referred to in this press release has
not yet commenced. The information relating to the SIB contained in
this press release is for informational purposes only and is not
intended to and does not constitute an offer to purchase or the
solicitation of an offer to sell shares. On the commencement date
of the SIB, a tender offer statement on Schedule TO, including an
offer to purchase, a letter of transmittal and related documents,
will be filed by Algoma with the SEC, and a separate issuer bid
circular and related documents will be filed by Algoma with the
OSC. The SIB will not be made to, nor will tenders be accepted from
or on behalf of, holders of shares in any jurisdiction in which the
making or acceptance of offers to sell shares would not be in
compliance with the laws of that jurisdiction. Although the board
of directors of the Company has determined to proceed towards
commencement of an SIB on the terms described in this press
release, market, legal, tax or other business considerations
between the date hereof and the commencement of the SIB may cause
the Board of Directors to determine not to proceed with the SIB on
the terms described in this press release, or at all. The Company
will be under no legal obligation in respect of the offer under the
SIB until the SIB is formally launched. None of the Company, its
board of directors, or its advisors makes any recommendation to
shareholders as to whether to tender or refrain from tendering any
or all of their shares pursuant to the SIB or the purchase price or
prices at which shareholders may choose to tender shares.
SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER STATEMENT REGARDING
THE OFFER, AS IT MAY BE AMENDED FROM TIME TO TIME, WHEN IT BECOMES
AVAILABLE BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION.
Shareholders may obtain a free copy of the tender offer statement
and related documents filed with the SEC (in each case, when
available) at the website maintained by the SEC at www.sec.gov or
with the OSC at the website maintained by the Canadian Securities
Administrators at www.sedar.com. Shareholders may also obtain those
materials from the depositary for the SIB, which will be named in
the tender offer statement. Shareholders are urged to evaluate
carefully all information related to the SIB, consult their own
financial, legal, investment and tax advisors and make their own
decisions as to whether to deposit shares pursuant to the SIB and,
if so, how many shares to deposit and at what price.
Non-IFRS Financial
Measures
To supplement our financial statements, which
are prepared in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board
(“IFRS”), we use certain non-IFRS measures to evaluate
the performance of Algoma. These terms do not have any standardized
meaning prescribed within 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 a further understanding
of our financial performance from management’s perspective.
Accordingly, they should not be considered in isolation nor as a
substitute for analysis of our financial information reported under
IFRS.
Adjusted EBITDA, as we define it, refers to net
(loss) income before amortization of property, plant, equipment and
amortization of intangible assets, finance costs, interest on
pension and other post-employment benefit obligations, income
taxes, restructuring costs, impairment reserve, foreign exchange
loss (gain), finance income, carbon tax, share based compensation
related to performance share units and business combination
adjustments. Adjusted EBITDA margin is calculated by dividing
Adjusted EBITDA by revenue for the corresponding period. Adjusted
EBITDA is not intended to represent cash flow from operations, as
defined by IFRS, and should not be considered as alternatives to
net earnings, cash flow from operations, or any other measure of
performance prescribed by IFRS. Adjusted EBITDA, as we define and
use it, may not be comparable to Adjusted EBITDA as defined and
used by other companies. We consider Adjusted EBITDA to be a
meaningful measure to assess our operating performance in addition
to IFRS measures. It is included because we believe it can be
useful in measuring our operating performance and our ability to
expand our business and provide management and investors with
additional information for comparison of our operating results
across different time periods and to the operating results of other
companies. Adjusted EBITDA is also used by analysts and our lenders
as a measure of our financial performance. In addition, we consider
Adjusted EBITDA margin to be a useful measure of our operating
performance and profitability across different time periods that
enhance the comparability of our results. However, these measures
have limitations as analytical tools and should not be considered
in isolation from, or as alternatives to, net income, cash flow
from operations or other data prepared in accordance with IFRS.
Because of these limitations, such measures should not be
considered as measures of discretionary cash available to invest in
business growth or to reduce indebtedness. We compensate for these
limitations by relying primarily on our IFRS results using such
measures only as supplements to such results. See the financial
tables below for a reconciliation of the non-IFRS financial
measures reported herein.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada,
Algoma is a fully integrated producer of hot and cold rolled steel
products including sheet and plate. With a current raw steel
production capacity of an estimated 2.8 million tons per year,
Algoma’s size and diverse capabilities enable it to deliver
responsive, customer-driven product solutions straight from the
ladle to direct applications in the automotive, construction,
energy, defense, and manufacturing sectors. Algoma is a key
supplier of steel products to customers in Canada and Midwest USA
and is the only producer of plate steel products in Canada. The
Company’s mill is one of the lowest cost producers of hot rolled
sheet steel (HRC) in North America owing in part to its
state-of-the-art Direct Strip Production Complex (“DSPC”), which is
the newest thin slab caster in North America with direct coupling
to a basic oxygen furnace (BOF) melt shop.
Algoma has achieved several meaningful
improvements over the last several years that are expected to
result in enhanced long-term profitability for the business. Algoma
has upgraded its DSPC facility and recently installed its No. 2
Ladle Metallurgy Furnace. Additionally, the Company has cost
cutting initiatives underway and is in the process of modernizing
its plate mill facilities.
Today Algoma is on a transformation journey,
investing in its people and processes, optimizing and modernizing
to secure a sustainable future. Our customer focus, growing
capability and courage to meet the industry’s challenges head-on
position us firmly as your partner in steel.
|
|
|
Algoma Steel Group Inc. Consolidated Statements of
Financial Position |
|
|
As at, |
March 31, 2022 |
March 31, 2021 |
expressed in millions of Canadian dollars |
|
|
Assets |
|
|
Current |
|
|
Cash |
$915.3 |
|
$21.2 |
|
Restricted cash |
3.9 |
|
3.9 |
|
Accounts receivable, net |
402.3 |
|
274.6 |
|
Inventories, net |
480.0 |
|
415.3 |
|
Prepaid expenses and deposits |
79.9 |
|
74.6 |
|
Margin payments |
29.5 |
|
49.4 |
|
Other assets |
5.6 |
|
3.8 |
|
Total current assets |
$1,916.5 |
|
$842.8 |
|
Non-current |
|
|
Property, plant and equipment, net |
$773.7 |
|
$699.9 |
|
Intangible assets, net |
1.1 |
|
1.5 |
|
Related party receivable |
- |
|
2.2 |
|
Other assets |
2.3 |
|
7.5 |
|
Total non-current assets |
$777.1 |
|
$711.1 |
|
Total assets |
$2,693.6 |
|
$1,553.9 |
|
Liabilities and Shareholder's Equity |
|
|
Current |
|
|
Bank indebtedness |
$0.1 |
|
$90.1 |
|
Accounts payable and accrued liabilities |
261.9 |
|
153.8 |
|
Taxes payable and accrued taxes |
64.3 |
|
27.2 |
|
Current portion of other long-term liabilities |
0.4 |
|
- |
|
Current portion of long-term debt |
- |
|
13.6 |
|
Current portion of governmental loans |
10.0 |
|
- |
|
Current portion of environmental liabilities |
4.5 |
|
4.5 |
|
Derivative financial instruments |
28.8 |
|
49.4 |
|
Warrant liability |
99.4 |
|
- |
|
Earnout liability |
22.7 |
|
- |
|
Share-based payment compensation liability |
45.4 |
|
10.0 |
|
Total current liabilities |
$537.5 |
|
$348.6 |
|
Non-current |
|
|
Long-term debt |
$- |
|
$439.3 |
|
Long-term governmental loans |
85.2 |
|
86.4 |
|
Accrued pension liability |
118.1 |
|
170.1 |
|
Accrued other post-employment benefit obligation |
239.8 |
|
297.8 |
|
Other long-term liabilities |
4.0 |
|
2.5 |
|
Environmental liabilities |
33.5 |
|
35.4 |
|
Deferred income tax liabilities |
92.9 |
|
- |
|
Total non-current liabilities |
$573.5 |
|
$1,031.5 |
|
Total liabilities |
$1,111.0 |
|
$1,380.1 |
|
Shareholder's equity |
|
|
Capital stock |
|
$409.5 |
|
Accumulated other comprehensive income |
152.0 |
|
9.5 |
|
Deficit |
77.8 |
|
(249.3 |
) |
Contributed surplus |
(25.2 |
) |
4.1 |
|
Total shareholder's equity |
$1,582.6 |
|
$173.8 |
|
Total liabilities and shareholder's equity |
$2,693.6 |
|
$1,553.9 |
|
|
|
|
Algoma Steel Group Inc. Consolidated Statements of Net
Income (Loss) (Unaudited) |
|
|
|
|
|
|
Three monthsended March31, 2022 |
Three monthsended March31, 2021 |
Year endedMarch 31, 2022 |
Year endedMarch 31,2021 |
expressed in millions of Canadian dollars |
|
|
|
|
|
Revenue |
$941.8 |
|
$638.5 |
|
$3,806.0 |
|
$1,794.9 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Cost of sales |
$603.2 |
|
$476.0 |
|
$2,292.0 |
|
$1,637.7 |
|
Administrative and selling expenses |
28.0 |
|
32.5 |
|
103.0 |
|
72.4 |
|
Income from operations |
$310.6 |
|
$130.0 |
|
$1,411.0 |
|
$84.8 |
|
|
|
|
|
|
|
Other (income) and expenses |
|
|
|
|
|
Finance income |
($0.4 |
) |
$0.0 |
|
($0.5 |
) |
($1.1 |
) |
Finance costs |
4.3 |
|
15.9 |
|
48.6 |
|
68.5 |
|
Interest on pension and other post-employment benefit
obligations |
2.9 |
|
4.1 |
|
11.6 |
|
17.0 |
|
Foreign exchange loss |
6.3 |
|
9.9 |
|
4.3 |
|
76.5 |
|
Transaction costs |
5.0 |
|
- |
|
26.5 |
|
- |
|
Listing expense |
- |
|
- |
|
235.6 |
|
- |
|
Change in fair value of warrant liability |
13.2 |
|
- |
|
6.4 |
|
- |
|
Change in fair value of earnout liability |
(44.5 |
) |
- |
|
(78.1 |
) |
- |
|
Change in fair value of share-based compensation liability |
2.9 |
|
- |
|
- |
|
- |
|
|
($10.3 |
) |
$29.9 |
|
$254.4 |
|
$160.9 |
|
Income (loss) before income taxes |
$320.9 |
|
$100.1 |
|
$1,156.6 |
|
($76.1 |
) |
Income tax expense |
78.0 |
|
- |
|
298.9 |
|
- |
|
Net
income (loss) |
$242.9 |
|
$100.1 |
|
$857.7 |
|
($76.1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) per common share |
|
|
|
|
|
Basic |
$1.59 |
|
$1.40 |
|
$8.53 |
|
($1.06 |
) |
Diluted |
$1.45 |
|
$1.40 |
|
$7.75 |
|
($1.06 |
) |
|
|
|
|
|
|
Algoma Steel Group Inc. Consolidated Statements of Cash
Flows (Unaudited) |
|
|
|
|
|
Three monthsended March31, 2022 |
Three monthsended March31, 2021 |
Year endedMarch 31, 2022 |
Year endedMarch 31,2021 |
expressed in millions of Canadian dollars |
|
|
|
|
Operating activities |
|
|
|
|
Net Income (loss) |
$242.9 |
|
$100.1 |
|
$857.7 |
|
($76.1 |
) |
Items not affecting cash: |
|
|
|
|
Amortization of property, plant and equipment and intangible
assets |
22.7 |
|
21.7 |
|
87.0 |
|
87.2 |
|
Deferred income tax expense |
(3.3 |
) |
- |
|
101.7 |
|
- |
|
Pension expense in excess of funding (pension funding in excess of
expense) |
1.7 |
|
(7.5 |
) |
2.4 |
|
(30.5 |
) |
Post-employment benefit funding in excess of expense |
(1.0 |
) |
(1.6 |
) |
(6.1 |
) |
(7.8 |
) |
Unrealized foreign exchange loss (gain) on: |
|
|
|
|
accrued pension liability |
1.8 |
|
3.5 |
|
1.5 |
|
32.1 |
|
post-employment benefit obligations |
3.7 |
|
4.1 |
|
0.9 |
|
34.3 |
|
Finance costs |
4.3 |
|
15.9 |
|
48.6 |
|
68.5 |
|
Loss on disposal of property, plant and equipment |
0.3 |
|
2.5 |
|
0.3 |
|
2.5 |
|
Interest on pension and other post-employment benefit
obligations |
2.9 |
|
4.1 |
|
11.6 |
|
17.0 |
|
Accretion of governmental loans and environmental liabilities |
3.1 |
|
2.5 |
|
12.2 |
|
10.3 |
|
Unrealized foreign exchange loss (gain) on government loan
facilities |
1.4 |
|
1.1 |
|
0.6 |
|
9.0 |
|
Increase in fair value of warrant liability |
13.2 |
|
- |
|
6.4 |
|
- |
|
Decrease in fair value of earnout liability |
(44.5 |
) |
- |
|
(78.1 |
) |
- |
|
Increase in fair value of share-based compensation liability |
2.9 |
|
- |
|
- |
|
- |
|
Listing expense |
- |
|
- |
|
235.6 |
|
- |
|
Other |
1.0 |
|
(3.1 |
) |
5.5 |
|
0.9 |
|
|
$253.1 |
|
$143.3 |
|
$1,287.8 |
|
$147.4 |
|
Net change in non-cash operating working capital |
191.1 |
|
(9.6 |
) |
(21.1 |
) |
(137.7 |
) |
Environmental liabilities paid |
(0.4 |
) |
0.2 |
|
(3.3 |
) |
(1.6 |
) |
Cash
generated by operating activities |
$443.8 |
|
$133.9 |
|
$1,263.4 |
|
$8.1 |
|
Investing activities |
|
|
|
|
Acquisition of property, plant and equipment |
($93.4 |
) |
($22.0 |
) |
($166.2 |
) |
($71.7 |
) |
Disposition (acquisition) of intangible asset |
0.4 |
|
(0.1 |
) |
- |
|
(0.1 |
) |
Acquisition of right-of-use assets |
(0.9 |
) |
- |
|
(1.7 |
) |
- |
|
Recovery (issuance) of related party receivable |
- |
|
- |
|
2.2 |
|
(1.1 |
) |
Cash
used in investing activities |
($93.9 |
) |
($22.1 |
) |
($165.7 |
) |
($72.9 |
) |
Financing activities |
|
|
|
|
Bank indebtedness (repaid) advanced, net |
$0.1 |
|
($95.3 |
) |
($86.8 |
) |
($145.2 |
) |
Repayment of term loans |
(0.1 |
) |
(3.5 |
) |
(457.8 |
) |
(12.6 |
) |
Governmental loans issued, net of benefit |
1.1 |
|
(0.1 |
) |
1.1 |
|
6.5 |
|
Repayment of governmental loans |
(0.8 |
) |
- |
|
(0.8 |
) |
- |
|
Interest paid |
(0.1 |
) |
(11.4 |
) |
(36.3 |
) |
(15.6 |
) |
Proceeds from issuance of shares |
- |
|
- |
|
393.5 |
|
- |
|
Dividends paid |
(9.3 |
) |
- |
|
(9.3 |
) |
- |
|
Other |
(0.4 |
) |
0.2 |
|
(2.3 |
) |
(0.5 |
) |
Cash
used in financing activities |
($9.5 |
) |
($110.1 |
) |
($198.7 |
) |
($167.4 |
) |
Effect of exchange rate changes on cash |
($12.6 |
) |
($0.2 |
) |
($4.9 |
) |
($11.6 |
) |
Cash |
|
|
|
|
Increase (decrease) in cash |
327.8 |
|
1.5 |
|
894.1 |
|
(243.8 |
) |
Opening balance |
587.5 |
|
19.7 |
|
21.2 |
|
265.0 |
|
Ending balance |
$915.3 |
|
$21.2 |
|
$915.3 |
|
$21.2 |
|
|
|
|
|
|
Algoma Steel Group Inc. Reconciliation of Net Income (Loss)
to Adjusted EBITDA |
|
|
|
|
|
|
|
millions of dollars |
Three monthsended March31, 2022 |
|
Three monthsended March31, 2021 |
|
Year endedMarch 31, 2022 |
|
Year endedMarch 31,2021 |
Net income (loss) |
$242.9 |
|
|
$100.1 |
|
|
$857.7 |
|
|
($76.1) |
|
|
|
|
|
|
|
|
|
Amortization
of property, plant and equipment and amortization of intangible
assets |
22.8 |
|
|
21.0 |
|
|
87.1 |
|
|
86.9 |
|
Finance
costs |
4.3 |
|
|
15.9 |
|
|
48.6 |
|
|
68.5 |
|
Interest on
pension and other post-employment benefit obligations |
2.9 |
|
|
4.1 |
|
|
11.6 |
|
|
17.0 |
|
Income
taxes |
78.0 |
|
|
- |
|
|
298.9 |
|
|
- |
|
Foreign
exchange loss |
6.3 |
|
|
9.9 |
|
|
4.4 |
|
|
76.5 |
|
Finance
income |
(0.4) |
|
|
- |
|
|
(0.5) |
|
|
(1.1) |
|
Carbon
tax |
0.4 |
|
|
1.8 |
|
|
(0.6) |
|
|
13.4 |
|
Increase in
fair value of warrant liability |
13.2 |
|
|
- |
|
|
6.4 |
|
|
- |
|
Decrease in
fair value of earnout liability |
(44.5) |
|
|
- |
|
|
(78.1) |
|
|
- |
|
Increase in
fair value of share-based payment compensation liability |
2.9 |
|
|
- |
|
|
- |
|
|
- |
|
Transaction
costs |
5.0 |
|
|
- |
|
|
26.5 |
|
|
- |
|
Listing
expense |
- |
|
|
- |
|
|
235.6 |
|
|
- |
|
Share-based
compensation |
0.7 |
|
|
14.1 |
|
|
5.7 |
|
|
14.1 |
|
Adjusted EBITDA (i) |
$334.4 |
|
|
$166.9 |
|
|
$1,503.2 |
|
|
$199.2 |
|
Net
income (loss) Margin |
25.8% |
|
|
15.7% |
|
|
22.5% |
|
|
-4.2% |
|
Net
income (loss) / ton |
$443.84 |
|
|
$161.01 |
|
|
$373.36 |
|
|
($36.19) |
|
Adjusted EBITDA Margin (ii) |
35.5% |
|
|
26.1% |
|
|
39.5% |
|
|
11.1% |
|
Adjusted EBITDA / ton |
$611.09 |
|
|
$268.40 |
|
|
$654.37 |
|
|
$94.76 |
|
|
|
|
|
|
|
|
|
(i) See "Non-IFRS
Financial Measures" in this Press Release for information regarding
the limitations of using Adjusted
EBITDA. |
(ii) Adjusted EBITDA
is Adjusted EBITDA as a percentage of
revenue. |
For more information, please contact:
Michael MoracaTreasurer & Investor
Relations OfficerAlgoma Steel Group Inc.
Phone: 705.945.3300E-mail: IR@algoma.com
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