Leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel Group Inc announced results for its fiscal second quarter ended September 30, 2021. Algoma Steel CEO Mr Michael McQuade said “Our financial results for the fiscal second quarter demonstrate continued solid execution by our team, generating record revenue, Adjusted EBITDA, and cash flows due in part to the combination of higher realized steel prices and ongoing cost containment initiatives. These results contributed to our strong liquidity, which has positioned us to make two additional strategic announcements that we believe will increase value to our shareholders and provide competitive strategic growth.”Second Quarter Fiscal 2022 Financial ResultsSecond quarter revenue totaled CAD 1.01 billion, up 168% from CAD 377.0 million in the prior year quarter. As compared with the prior year quarter, steel revenue was CAD 936.5 million, up 179% from CAD 335.3 million. Income from operations was CAD 402.1 million, compared to a loss from operations of CAD 24.7 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 second quarter was CAD 288.2 million, compared to a net loss of CAD 60.0 in the prior year quarter.Shipments for the second quarter increased by 14% to 587,340 tons as compared to 516,294 tons in the prior year quarter.Mr McQuade added “Calendar 2021 has been an incredible journey, and we expect that the final three months will be a truly transformative period for Algoma. Following our successful return to the public markets in October, we are excited to have announced today, under a separate release, that our board has authorized our investment in electric arc steelmaking. Additionally, the board has approved a plan to retire all of Algoma’s outstanding senior secured long-term debt. This USD 358 million debt reduction will leave us with a stronger balance sheet that we believe enhances our position, both operationally and financially, to make critical investments in our business that we expect will drive sales and create additional long-term value for our stakeholders.”Based on our current information regarding our operations and end markets, Algoma currently expects the following for the third quarter of fiscal 2022:Shipments: 590 - 610k tonsAdjusted EBITDA: At least CAD 450 million
Leading Canadian producer of hot and cold rolled steel sheet and plate products Algoma Steel Group Inc announced results for its fiscal second quarter ended September 30, 2021. Algoma Steel CEO Mr Michael McQuade said “Our financial results for the fiscal second quarter demonstrate continued solid execution by our team, generating record revenue, Adjusted EBITDA, and cash flows due in part to the combination of higher realized steel prices and ongoing cost containment initiatives. These results contributed to our strong liquidity, which has positioned us to make two additional strategic announcements that we believe will increase value to our shareholders and provide competitive strategic growth.”Second Quarter Fiscal 2022 Financial ResultsSecond quarter revenue totaled CAD 1.01 billion, up 168% from CAD 377.0 million in the prior year quarter. As compared with the prior year quarter, steel revenue was CAD 936.5 million, up 179% from CAD 335.3 million. Income from operations was CAD 402.1 million, compared to a loss from operations of CAD 24.7 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 second quarter was CAD 288.2 million, compared to a net loss of CAD 60.0 in the prior year quarter.Shipments for the second quarter increased by 14% to 587,340 tons as compared to 516,294 tons in the prior year quarter.Mr McQuade added “Calendar 2021 has been an incredible journey, and we expect that the final three months will be a truly transformative period for Algoma. Following our successful return to the public markets in October, we are excited to have announced today, under a separate release, that our board has authorized our investment in electric arc steelmaking. Additionally, the board has approved a plan to retire all of Algoma’s outstanding senior secured long-term debt. This USD 358 million debt reduction will leave us with a stronger balance sheet that we believe enhances our position, both operationally and financially, to make critical investments in our business that we expect will drive sales and create additional long-term value for our stakeholders.”Based on our current information regarding our operations and end markets, Algoma currently expects the following for the third quarter of fiscal 2022:Shipments: 590 - 610k tonsAdjusted EBITDA: At least CAD 450 million
