Commercial Metals Company Reports Third Quarter Fiscal 2019 Results

IRVING, Texas, June 20, 2019 /PRNewswire/ -- Commercial Metals Company CMC today announced financial results for its fiscal third quarter ended May 31, 2019.  For the three months ended May 31, 2019, earnings from continuing operations were $78.6 million, or $0.66 per diluted share, on net sales of $1.6 billion, compared to earnings from continuing operations of $42.3 million, or $0.36 per diluted share, on net sales of $1.2 billion for the prior year period.  Revenue increased 33% on a year-over-year basis driven by the Company's growth strategy and strong fundamentals in its core markets.

Third quarter fiscal 2019 results included net after tax expenses of $1.8 million related to certain non-operational costs related to the acquisition of rebar assets from Gerdau S.A.  Excluding these expenses, adjusted earnings from continuing operations were $80.4 million, or $0.67 per diluted share, as detailed in the non-GAAP reconciliation on page 12.  This represents a 64% increase compared to adjusted earnings from continuing operations of $49.0 million, or $0.41 per diluted share, for the three months ended May 31, 2018.  In comparison to the most recent quarter ended February 28, 2019, this represents an increase of 130% compared to adjusted earnings from continuing operations of $35.0 million or $0.29 per diluted share.

Excluding non-recurring integration related costs related to the four steel mills and rebar fabrication assets purchased from Gerdau S.A., that closed on November 5, 2018, the acquired assets contributed revenue of $453.5 million and operating income of $56.6 million to the consolidated results of CMC in the third quarter of fiscal 2019.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, said, "The strong results for the quarter reflect the strength of construction activity, as well as solid industrial production levels and the resilient U.S. and Polish economies. Our recent acquisition, our greenfield Oklahoma facility, and introduction of hot spooled rebar were all meaningful contributors to top and bottom line financial results.  In addition, the fundamentals of the fabrication segment have improved significantly as we have shipped the majority of the lower priced work in our backlog which has resulted in a significant improvement in the segment results."

The Company's liquidity position at May 31, 2019 continued to be strong with cash and cash equivalents of $120.3 million and availability under the Company's credit and accounts receivable sales facilities of $617.2 million.

On June 19, 2019, the board of directors of CMC declared a quarterly dividend of $0.12 per share of CMC common stock payable to stockholders of record on July 5, 2019.  The dividend will be paid on July 18, 2019.

Business Segments - Fiscal Third Quarter 2019 Review

Our Americas Recycling segment recorded adjusted EBITDA of $12.3 million for the third quarter of fiscal 2019, compared to adjusted EBITDA of $19.5 million for the prior year third quarter.   Despite a decline in ferrous pricing, we generated good EBITDA results in this segment as a result of our diligent buying practice, high inventory turnover and recent investment in separation technology to better refine our end non-ferrous purity levels to achieve higher margins.

Our Americas Mills segment recorded adjusted EBITDA of $158.1 million for the third quarter of fiscal 2019, an increase of 76% compared to adjusted EBITDA of $89.6 million for the third quarter of fiscal 2018.  The third quarter results include adjusted EBITDA of $53.6 million from the acquired mills on shipments of 469 thousand tons.  As a result of decreases in both ferrous scrap cost and our manufacturing costs due to higher production levels, combined with relatively flat selling prices, the per ton EBITDA contribution for our Americas Mills segment increased $26 per ton in comparison to the third quarter of fiscal 2018.

Our Americas Fabrication segment recorded an adjusted EBITDA loss of $23.3 million for the third quarter of fiscal 2019, compared to an adjusted EBITDA loss of $8.2 million for the third quarter of fiscal 2018.  This year's third quarter results include an adjusted EBITDA loss of $13.9 million related to the acquired fabrication operations on shipments of 184 thousand tons.  This loss excludes the benefit of a purchase accounting adjustment of $23.4 million related to amortization of the unfavorable contract backlog reserve that was assumed in the acquisition.  Including this adjustment, the operating income of the acquired fabrication assets was $10.1 million for the quarter.

The segment had significantly improved results in comparison to the results of the past three quarters.  Average selling prices in the Americas Fabrication segment rose 19% compared to the third quarter of fiscal 2018.  The existing business is approaching break-even levels at current rebar prices.  The backlog acquired from Gerdau had a lower per ton value, so a return to positive EBITDA is expected to occur in fiscal 2020.  Rebar fabrication bidding activity remains strong.  Selling prices for contracted work during fiscal 2019, including the acquired locations, has averaged above $1,000 per ton, which is expected to be profitable when shipped in future quarters at current rebar prices.

Our International Mill segment in Poland recorded adjusted EBITDA of $24.1 million for the third quarter of fiscal 2019, compared to adjusted EBITDA of $32.0 million for the comparable prior year quarter.  Elevated levels of imported product resulted in a slight compression of metal margins during the quarter.  Despite the reduction in selling prices, this segment is on track to earn the second highest level of profitability in its history due to the continued strong non-residential construction market in Poland.

Our Corporate and Other segment recorded an adjusted EBITDA loss of $27.3 million for the third quarter of fiscal 2019 compared to an adjusted EBITDA loss of $31.8 million for the prior year's third quarter.  The current quarter loss includes $2.3 million related to acquisition costs in comparison to $5.0 million in the third quarter of fiscal 2018.  Excluding these costs, our Corporate segment costs have remained relatively flat as the newly acquired operations were absorbed with little impact to the overall cost structure.

Outlook

"Our outlook for demand remains very positive driven by the continued strength in non-residential construction activity levels in our markets," said Ms. Smith.  "Leveraging the growth in our business from the acquisition, combined with the continued favorable long steel margin environment and improvement in our fabrication segment, we anticipate a strong finish to our fiscal year.  We also anticipate that our business will generate strong cash flows, creating the opportunity to reduce our indebtedness levels."

Conference Call

CMC invites you to listen to a live broadcast of its third quarter fiscal 2019 conference call today, Thursday, June 20, 2019, at 2:00 p.m. ETBarbara Smith, Chairman of the Board of Directors, President, and Chief Executive Officer, and Mary Lindsey, Senior Vice President and Chief Financial Officer, will host the call.  The call is accessible via our website at www.cmc.com.  In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day.  Financial and statistical information presented in the broadcast are located on CMC's website under "Investors".

About Commercial Metals Company

Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of facilities that includes eight electric arc furnace ("EAF") mini mills, two EAF micro mills, a rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the federal securities laws with respect to general economic conditions, key macro-economic drivers that impact our business, the effects of ongoing trade actions, potential synergies provided by our recent acquisitions, demand for our products, steel margins, the ability to operate our mills at full capacity, future supplies of raw materials and energy for our operations, legal proceedings, U.S. non-residential construction activity, international trade, capital expenditures, our liquidity and our ability to satisfy future liquidity requirements, our Oklahoma micro mill, estimated contractual obligations, the effects of the acquisition of substantially all of the U.S. rebar fabrication facilities and the steel mini-mills located in or around Rancho Cucamonga, California, Jacksonville, Florida, Sayreville, New Jersey and Knoxville, Tennessee previously owned by Gerdau S.A. and certain of its subsidiaries (collectively, the "Acquired Businesses"), and our expectations or beliefs concerning future events.  These forward-looking statements can generally be identified by phrases such as we or our management "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "projects," "forecasts," "outlook" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. We caution readers not to place undue reliance on any forward-looking statements.

Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially.  Except as required by law, we undertake no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or any other changes. Important factors that could cause actual results to differ materially from our expectations include those described in Part I, Item 1A, Risk Factors, of our Annual Report on Form 10-K for the fiscal year ended August 31, 2018 as well as the following: changes in economic conditions which affect demand for our products or construction activity generally, and the impact of such changes on the highly cyclical steel industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices or reducing the profitability of our fabrication contracts due to rising commodity pricing; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions; involvement in various environmental matters that may result in fines, penalties or judgments; potential limitations in our or our customers' abilities to access credit and non-compliance by our customers with our contracts; activity in repurchasing shares of our common stock under our repurchase program; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; our ability to successfully identify, consummate, and integrate acquisitions and the effects that acquisitions may have on our financial leverage; risks associated with acquisitions generally, such as the inability to obtain, or delays in obtaining, required approvals under applicable antitrust legislation and other regulatory and third party consents and approvals; failure to retain key management and employees of the Acquired Businesses; issues or delays in the successful integration of the Acquired Businesses' operations with those of the Company, including the inability to substantially increase utilization of the Acquired Businesses' steel mini mills, and incurring or experiencing unanticipated costs and/or delays or difficulties; difficulties or delays in the successful transition of the Acquired Businesses to the information technology systems of the Company as well as risks associated with other integration or transition of the operations, systems and personnel of the Acquired Businesses; unfavorable reaction to the acquisition of the Acquired Businesses by customers, competitors, suppliers and employees; lower than expected future levels of revenues and higher than expected future costs; failure or inability to implement growth strategies in a timely manner; impact of goodwill impairment charges; impact of long-lived asset impairment charges; currency fluctuations; global factors, including political uncertainties and military conflicts; availability and pricing of electricity, electrodes and natural gas for mill operations; ability to hire and retain key executives and other employees; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; information technology interruptions and breaches in security; ability to make necessary capital expenditures; availability and pricing of raw materials and other items over which we exert little influence, including scrap metal, energy and insurance; unexpected equipment failures; ability to realize the anticipated benefits of our investment in our micro mill in Durant, Oklahoma; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; impacts of the Tax Cuts and Jobs Act ("TCJA"); and increased costs related to health care reform legislation.

COMMERCIAL METALS COMPANY

FINANCIAL & OPERATING STATISTICS (UNAUDITED)





Three Months Ended



Nine Months Ended

(in thousands, except per ton amounts)



5/31/2019



2/28/2019



11/30/2018



8/31/2018



5/31/2018



5/31/2019



5/31/2018

 Americas Recycling





























Net sales



$

289,015





287,075





302,009





361,363





364,098





878,099





1,004,066



Adjusted EBITDA



$

12,331





10,124





15,434





16,996





19,477





37,889





51,698



Short tons shipped (in thousands)





























 Ferrous



597





570





579





644





642





1,746





1,791



 Nonferrous



60





59





63





69





65





182





194



 Total short tons shipped



657





629





642





713





707





1,928





1,985



 Average selling price (per short ton)





























 Ferrous



$

252





266





273





298





314





263





286



 Nonferrous



$

2,047





1,998





1,982





2,155





2,252





2,009





2,267

































 Americas Mills





























Net sales



$

866,903





774,709





601,853





604,435





553,063





2,243,465





1,392,468



Adjusted EBITDA



$

158,114





112,396





113,873





106,830





89,590





384,383





194,975



 Short tons shipped





























     Rebar



913





773





530





482





503





2,216





1,313



     Merchant & Other



323





322





317





359





308





962





859



Total short tons shipped



1,236





1,095





847





841





811





3,178





2,172



 Average price (per short ton)





























Total selling price



$

670





677





682





674





632





674





587



Cost of ferrous scrap utilized



$

284





303





307





326





329





297





293



Metal margin



$

386





374





375





348





303





377





294

































 Americas Fabrication





























Net sales



$

633,047





530,836





437,111





403,889





378,241





1,600,994





1,023,993



Adjusted EBITDA



$

(23,289)





(49,578)





(36,996)





(24,607)





(8,208)





(109,863)





(14,787)



Total short tons shipped



469





396





319





307





302





1,184





808



Total selling price (per short ton)



$

925





845





868





843





777





886





784

































 International Mill





























Net sales



$

209,365





175,198





227,024





253,058





201,737





611,587





633,980



Adjusted EBITDA



$

24,120





20,537





32,779





36,654





31,987





77,436





95,066



 Short tons shipped





























     Rebar



126





66





80





145





79





272





314



     Merchant & Other



250





238





312





289





241





800





752



Total short tons shipped



376





304





392





434





320





1,072





1,066



 Average price (per short ton)





























Total selling price



$

524





545





547





555





599





539





562



Cost of ferrous scrap utilized



$

288





301





295





305





329





295





317



Metal margin



$

236





244





252





250





270





244





245



 

COMMERCIAL METALS COMPANY

BUSINESS SEGMENTS (UNAUDITED)

(in thousands)



Three Months Ended



Nine Months Ended

Net sales



5/31/2019



2/28/2019



11/30/2018



8/31/2018



5/31/2018



5/31/2019



5/31/2018

 Americas Recycling



$

289,015





$

287,075





$

302,009





$

361,363





$

364,098





$

878,099





$

1,004,066



 Americas Mills



866,903





774,709





601,853





604,435





553,063





2,243,465





1,392,468



 Americas Fabrication



633,047





530,836





437,111





403,889





378,241





1,600,994





1,023,993



 International Mill



209,365





175,198





227,024





253,058





201,737





611,587





633,980



 Corporate and Other



(392,458)





(365,035)





(290,655)





(314,307)





(292,655)





(1,048,148)





(719,222)



Total Net Sales



$

1,605,872





$

1,402,783





$

1,277,342





$

1,308,438





$

1,204,484





$

4,285,997





$

3,335,285

































Adjusted EBITDA from continuing operations





























 Americas Recycling



$

12,331





$

10,124





$

15,434





$

16,996





$

19,477





$

37,889





$

51,698



 Americas Mills



158,114





112,396





113,873





106,830





89,590





384,383





194,975



 Americas Fabrication



(23,289)





(49,578)





(36,996)





(24,607)





(8,208)





(109,863)





(14,787)



 International Mill



24,120





20,537





32,779





36,654





31,987





77,436





95,066



 Corporate and Other



(27,305)





(24,146)





(59,554)





(28,827)





(31,814)





(111,005)





(81,777)



 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)





Three Months Ended May 31,



Nine Months Ended May 31,

(in thousands, except share data)



2019



2018



2019



2018

Net sales



$

1,605,872





$

1,204,484





$

4,285,997





$

3,335,285



Costs and expenses:

















Cost of goods sold



1,364,242





1,035,914





3,735,168





2,896,531



Selling, general and administrative expenses



115,461





101,422





331,404





306,009



Interest expense



18,513





11,511





53,671





25,303







1,498,216





1,148,847





4,120,243





3,227,843





















Earnings from continuing operations before income taxes



107,656





55,637





165,754





107,442



Income taxes



29,105





13,312





52,855





23,465



Earnings from continuing operations



78,551





42,325





112,899





83,977





















Earnings (loss) from discontinued operations before income taxes



(190)





(3,389)





(808)





5,021



Income taxes (benefit)



(29)





(1,029)





109





2,052



Earnings (loss) from discontinued operations



(161)





(2,360)





(917)





2,969





















Net earnings



$

78,390





$

39,965





$

111,982





$

86,946





















Basic earnings (loss) per share*

















Earnings from continuing operations



$

0.67





$

0.36





$

0.96





$

0.72



Earnings (loss) from discontinued operations







(0.02)





(0.01)





0.03



Net earnings



$

0.66





$

0.34





$

0.95





$

0.74





















Diluted earnings (loss) per share*

















Earnings from continuing operations



$

0.66





$

0.36





$

0.95





$

0.71



Earnings (loss) from discontinued operations







(0.02)





(0.01)





0.03



Net earnings



$

0.66





$

0.34





$

0.94





$

0.74





















Average basic shares outstanding



118,045,362





117,111,799





117,762,945





116,722,504



Average diluted shares outstanding



119,145,566





118,254,791





119,013,014





118,050,864



*Earning Per Share ("EPS") is calculated independently for each component and may not sum to Net EPS due to rounding

 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands, except share data)



May 31, 2019



August 31, 2018

Assets









Current assets:









Cash and cash equivalents



$

120,315





$

622,473



Accounts receivable (less allowance for doubtful accounts of $17,318 and $4,489)



1,014,157





749,484



Inventories, net



807,593





589,005



Other current assets



172,007





116,243



Total current assets



2,114,072





2,077,205



Property, plant and equipment, net



1,473,568





1,075,038



Goodwill



64,226





64,310



Other noncurrent assets



115,144





111,751



Total assets



$

3,767,010





$

3,328,304



Liabilities and stockholders' equity









Current liabilities:









Accounts payable-trade



$

278,390





$

261,258



Accrued expenses and other payables



318,975





260,939



Acquired unfavorable contract backlog



51,998







Current maturities of long-term debt and short-term borrowings



54,895





19,746



Total current liabilities



704,258





541,943



Deferred income taxes



63,413





37,834



Other non-current liabilities



128,281





116,325



Long-term debt



1,306,863





1,138,619



Total liabilities



2,202,815





1,834,721



Stockholders' equity



1,563,999





1,493,397



Stockholders' equity attributable to noncontrolling interests



196





186



Total stockholders' equity



1,564,195





1,493,583



Total liabilities and stockholders' equity



$

3,767,010





$

3,328,304



 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)





Nine Months Ended May 31,

(in thousands)



2019



2018

Cash flows from (used by) operating activities:









Net earnings



$

111,982





$

86,946



Adjustments to reconcile net earnings to cash flows from (used by) operating activities:









Depreciation and amortization



117,617





99,443



Amortization of acquired unfavorable contract backlog



(58,202)







Stock-based compensation



17,350





18,247



Net gain on disposals of subsidiaries, assets and other



(1,334)





(1,578)



Deferred income taxes and other long-term taxes



36,367





5,829



Write-down of inventories



551





1,358



Provision for losses on receivables, net



100





2,193



Asset impairment



15





14,265



Changes in operating assets and liabilities



(75,422)





(65,612)



Beneficial interest in securitized accounts receivable



(367,521)





(491,577)



Net cash flows used by operating activities



(218,497)





(330,486)













Cash flows from (used by) investing activities:









Acquisitions, net of cash acquired



(700,941)





(6,980)



Capital expenditures



(91,753)





(144,268)



Proceeds from insurance



4,405





25,000



Proceeds from the sale of property, plant and equipment



2,503





6,315



Proceeds from the sale of discontinued operations and other



1,893





75,483



Advances under accounts receivable programs







132,979



Repayments under accounts receivable programs







(202,423)



Beneficial interest in securitized accounts receivable



367,521





491,577



Net cash flows from (used by) investing activities:



(416,372)





377,683













Cash flows from (used by) financing activities:









Proceeds from issuance of long-term debt



180,000





350,000



Repayments of long-term debt



(24,138)





(15,382)



Proceeds from accounts receivable programs



223,143







Repayments under accounts receivable programs



(209,363)







Dividends



(42,387)





(42,036)



Stock issued under incentive and purchase plans, net of forfeitures



(2,364)





(9,836)



Debt issuance costs







(5,254)



Other



10





31



Net cash flows from financing activities



124,901





277,523



Effect of exchange rate changes on cash



(341)





(461)



Increase (decrease) in cash, restricted cash and cash equivalents



(510,309)





324,259



Cash, restricted cash and cash equivalents at beginning of period



632,615





285,881



Cash, restricted cash and cash equivalents at end of period



$

122,306





$

610,140









Supplemental information:



Nine Months Ended May 31,

(in thousands)



2019



2018

Cash and cash equivalents



$

120,315





$

600,444



Restricted cash





1,991







9,696



Total cash, restricted cash and cash equivalents



$

122,306





$

610,140



COMMERCIAL METALS COMPANY

NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This press release contains financial measures not derived in accordance with generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measures are provided below.

Core EBITDA from Continuing Operations is a non-GAAP financial measure. Core EBITDA from continuing operations is the sum of earnings (loss) from continuing operations before interest expense and income taxes (benefit). It also excludes recurring non-cash charges for depreciation and amortization, asset impairments, and equity compensation. Core EBITDA from continuing operations also excludes certain material acquisition and integration related costs and other legal fees, mill operational start-up costs, CMC Steel Oklahoma incentives, net debt restructuring and extinguishment gains and losses, purchase accounting adjustments to inventory and severance expenses. Core EBITDA from continuing operations should not be considered an alternative to earnings (loss) from continuing operations or net earnings (loss), or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP. However, we believe that Core EBITDA from continuing operations provides relevant and useful information, which is often used by analysts, creditors and other interested parties in our industry as it allows: (i) comparison of our earnings to those of our competitors; (ii) a supplemental measure of our ongoing core performance; and (iii) the assessment of period-to-period performance trends. Additionally, Core EBITDA from continuing operations is the target benchmark for our annual and long-term cash incentive performance plans for management. Core EBITDA from continuing operations may be inconsistent with similar measures presented by other companies.

A reconciliation of earnings from continuing operations to Core EBITDA from continuing operations is provided below:



Three Months Ended



Nine Months Ended

(in thousands)

5/31/2019



2/28/2019



11/30/2018



8/31/2018



5/31/2018



5/31/2019



5/31/2018

Earnings from continuing operations

$

78,551





$

14,928





$

19,420





$

51,260





$

42,325





112,899





83,977



Interest expense

18,513





18,495





16,663





15,654





11,511





53,671





25,303



Income taxes

29,105





18,141





5,609





6,682





13,312





52,855





23,465



Depreciation and amortization

41,181





41,245





35,176





32,610





32,949





117,602





98,898



Asset impairments

15













840





935





15





13,532



Non-cash equity compensation

7,342





5,791





4,215





5,679





5,376





17,348





18,359



Acquisition and integration related costs and other

2,336





5,475





27,970





10,907





4,975





35,781





14,600



Amortization of acquired unfavorable contract backlog

(23,394)





(23,476)





(11,332)













(58,202)







Mill operational start-up costs*

















1,473









13,471



CMC Steel Oklahoma incentives

















(3,000)









(3,000)



Purchase accounting effect on inventory





10,315

















10,315







Core EBITDA from continuing operations

$

153,649





$

90,914





$

97,721





$

123,632





$

109,856





$

342,284





$

288,605



























































*Net of interest, taxes, depreciation and amortization, impairments, and non-cash equity compensation.

Adjusted earnings from continuing operations is a non-GAAP financial measure that is equal to earnings (loss) from continuing operations before certain acquisition and integration related and costs and other legal expenses, mill operational start-up costs, CMC Steel Oklahoma incentives, asset impairments, debt restructuring and extinguishment gains and losses, purchase accounting adjustments to inventory and severance expenses, including the estimated income tax effects thereof. Additionally, we adjust adjusted earnings from continuing operations for the effects of the TCJA as well as the tax benefit associated with an international reorganization. Adjusted earnings from continuing operations should not be considered as an alternative to earnings from continuing operations or any other performance measure derived in accordance with GAAP. However, we believe that adjusted earnings from continuing operations provides relevant and useful information to investors as it allows: (i) a supplemental measure of our ongoing core performance and (ii) the assessment of period-to-period performance trends. Management uses adjusted earnings from continuing operations to evaluate our financial performance. Adjusted earnings from continuing operations may be inconsistent with similar measures presented by other companies. Adjusted earnings from continuing operations per diluted share is defined as adjusted earnings from continuing operations on a diluted per share basis.

A reconciliation of earnings from continuing operations to adjusted earnings from continuing operations is provided below:



Three Months Ended



Nine Months Ended

(in thousands)

5/31/2019



2/28/2019



11/30/2018



8/31/2018



5/31/2018



5/31/2019



5/31/2018

Earnings from continuing operations

$

78,551





$

14,928





$

19,420





$

51,260





$

42,325





$

112,899





$

83,977



Impairment of structural steel assets

























12,136



Acquisition and integration related costs and other

2,336





5,475





27,970





10,907





4,975





35,781





14,600



Mill operational start-up costs

















6,456









18,016



CMC Steel Oklahoma incentives

















(3,000)









(3,000)



Purchase accounting effect on inventory





10,315

















10,315







Total adjustments (pre-tax)

$

2,336





$

15,790





$

27,970





$

10,907





$

8,431





$

46,096





$

41,752































Tax impact



























TCJA impact

$





$

7,550





$





$





$





$

7,550





$

10,600



International reorganization

























(9,200)



Related tax effects on adjustments

(490)





(3,316)





(5,874)





(2,290)





(1,771)





(9,680)





(10,946)



Total tax impact

(490)





4,234





(5,874)





(2,290)





(1,771)





(2,130)





(9,546)



Adjusted earnings from continuing operations

$

80,397





$

34,952





$

41,516





$

59,877





$

48,985





$

156,865





$

116,183































Adjusted earnings from continuing operations per diluted share

$

0.67





$

0.29





$

0.35





$

0.51





$

0.41





$

1.32





$

0.98



 

Cision View original content:http://www.prnewswire.com/news-releases/commercial-metals-company-reports-third-quarter-fiscal-2019-results-300871751.html

SOURCE Commercial Metals Company

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