In This Article:
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Adjusted EPS Loss: $1.33, primarily due to an income tax detriment associated with deferred tax assets.
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Steel Mill Utilization: 81%, higher than the US average of 75%.
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Operating Cash Flow: Nearly break-even for the quarter.
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Dividend: 123rd consecutive quarterly dividend paid.
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SG&A Expense Reduction: 6% reduction in adjusted SG&A costs year over year.
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Net Debt: $430 million at the end of the first quarter.
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CapEx Investment: $12 million in the first quarter; projected fiscal '25 CapEx around $60 million.
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Finished Steel Sales Volumes: 125,000 tons, down 11% sequentially.
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Non-Ferrous Sales Volumes: Down 14% sequentially; major export destinations include Malaysia, Thailand, and India.
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Ferrous Shipments: 43% domestic; top export destinations include Bangladesh, Turkey, and India.
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Legal Costs: Elevated costs expected to recede in the second half of fiscal '25.
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Asset Monetization: Expected net proceeds of $35 million from transactions in the second half of fiscal '25.
Release Date: January 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Radius Recycling Inc (NASDAQ:RDUS) achieved a nearly 50% reduction in total case incident rate, with 97% of sites experiencing zero lost time injuries.
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The recycled metals business saw improved contributions due to cost reduction measures and stronger non-ferrous demand.
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The company maintained stable operating results year over year despite challenging market conditions.
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Investments in advanced metal recovery technologies are expected to yield over $40 million in annual EBITDA after full deployment.
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The 3PR services business line contributed over 10% to recycled metal volumes in fiscal '24, providing a counterbalance to cyclical core operations.
Negative Points
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Adjusted EPS showed a loss of $1.33, primarily due to an income tax detriment associated with deferred tax assets.
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Finished steel contribution declined year over year due to weaker domestic steel conditions and a scheduled maintenance outage.
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The US manufacturing sector has been in recessionary territory for two years, impacting the availability of recycled scrap metal.
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Export prices for recycled ferrous metals decreased due to softer global steel demand and elevated Chinese steel exports.
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Interest expense rose by $4 million year over year, partly due to a recent amendment to the credit facility.
Q & A Highlights
Q: Can you discuss the impact of Chinese steel overproduction on the export market and any potential relief? A: Tamara Lundgren, CEO, explained that Chinese steel overproduction has dampened markets globally. However, they expect a pullback in excess production and exports from China as other countries push back against these cheap exports. While the timing is uncertain, a correction is anticipated.