Press Release: Stelco Holdings Inc. Reports Second Quarter 2024 Results

Dow Jones2024-08-08
Total liabilities and equity                $       3,083    $           3,065 
----------------------------------------  ---  ----------  ---  -------------- 
 

Non-IFRS Measures Reconciliation

The following table provides a reconciliation of net income to Adjusted Net Income for the periods indicated:

 
                         Three months ended June 
                                   30,              Six months ended June 30, 
                        --------------------------  -------------------------- 
(millions of Canadian 
dollars)                    2024          2023          2024          2023 
----------------------      ----          ----          ----          ---- 
Net income               $    67       $   117       $   130       $   106 
Add back (Deduct) 
following items: 
   Loss on derivative 
    asset                     15             5            22            15 
   Share-based 
    compensation 
    expense 
    (recovery)               (12)           (3)          (15)           13 
   Other costs (1)             1             4             4             6 
   Transaction-based 
    and other 
    corporate-related 
    costs                      1             2             3             2 
   Remeasurement of 
    employee benefit 
    commitment (2)             1            --             1            -- 
----------------------      ----          ----          ----          ---- 
Total adjusted items 
 before tax                    6             8            15            36 
Tax impact of above 
 items                        (2)           (2)           (4)           (9) 
----------------------      ----          ----          ----          ---- 
Total adjusted items 
 after tax                     4             6            11            27 
----------------------      ----          ----          ----          ---- 
Adjusted Net Income      $    71       $   123       $   141       $   133 
----------------------      ----          ----          ----          ---- 
 
 
(1)    Represents certain non-routine items that include, but are not limited 
       to, strategic project-based research and development costs, the 
       write-down of certain capital projects that are no longer being pursued 
       by the Company such as aborted construction in progress costs without 
       future benefit to Stelco, and demolition costs not connected to the 
       Company's ongoing steelmaking operations. 
(2)    Remeasurement of employee benefit commitment for change in timing of 
       projected cash flows and future funding requirements. 
 

The following table provides a reconciliation of net income to Adjusted EBITDA for the periods indicated:

 
                        Three months ended June    Six months ended June 
                                  30,                       30, 
----------------------  ------------------------  ------------------------ 
(millions of Canadian 
dollars, except where 
otherwise noted)         2024          2023           2024       2023 
----------------------   ----          ----  ---      ----       ----  --- 
Net income              $  67       $   117        $   130      $ 106 
Add back (Deduct) 
following items: 
   Finance costs           34            31             70         60 
   Depreciation            32            29             65         61 
   Income tax expense 
   (recovery): 
      Current              20            24             41         28 
      Deferred             (1)           16             (1)         9 
   Loss on derivative 
    asset                  15             5             22         15 
   Finance income         (10)          (10)           (19)       (20) 
   Share-based 
    compensation 
    expense 
    (recovery)            (12)           (3)           (15)        13 
   Other costs (1)          1             4              4          6 
   Transaction-based 
    and other 
    corporate-related 
    costs                   1             2              3          2 
----------------------   ----          ----  ---      ----       ----  --- 
Adjusted EBITDA         $ 147       $   215        $   300      $ 280 
----------------------   ----          ----  ---      ----       ----  --- 
 
Adjusted EBITDA as a 
 percentage of total 
 revenue                   21%           26%            21%        18% 
----------------------   ----          ----           ----       ---- 
 
 
(1)    Represents certain non-routine items that include, but are not limited 
       to, strategic project-based research and development costs, the 
       write-down of certain capital projects that are no longer being pursued 
       by the Company such as aborted construction in progress costs without 
       future benefit to Stelco, and demolition costs not connected to the 
       Company's ongoing steelmaking operations. 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807179590/en/

 
    CONTACT:    For Further Information 

For investor enquiries: Paul D. Scherzer, Chief Financial Officer, 905-577-4432, paul.scherzer@stelco.com

For media enquiries: Trevor Harris, Vice-President, Corporate Affairs, 905-577-4447, trevor.harris@stelco.com

 
 

(END) Dow Jones Newswires

August 07, 2024 17:35 ET (21:35 GMT)

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