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Commercial Metals reports no maturities until 2030, increasing EBITDA
By Devika Patel
Knoxville, Tenn., June 26 – Commercial Metals Co. paid off $214.1 million of maturing senior notes last quarter, leaving the company with no note maturities until 2030 and a low net debt-to-EBITDA leverage ratio of 0.5x as core EBITDA increased for the tenth consecutive quarter.
“As of May 31, cash and cash equivalents totaled $475.5 million, which reflected the repayment made earlier last month of $214.1 million in maturing senior notes,” senior vice president and chief financial officer Paul Lawrence said on the company’s third quarter ended May 31 earnings conference call on June 22.
“It should be noted that CMC does not face another note maturity until 2030.
The company’s net leverage ratio was 0.5x at quarter-end.
“Our leverage metrics remain attractive and have improved significantly over the last several fiscal years,” Lawrence said.
“We believe our robust balance sheet and our overall financial strength provide us the flexibility to finance our strategic organic growth projects and pursue opportunistic M&A, while continuing to return cash to shareholders,” Lawrence said.
Commercial Metals generated $391.7 million of core EBITDA for the quarter, a 29% increase from the prior quarter.
“This marks the North America segment's 10th consecutive quarter of year-over-year EBITDA growth and the 20th quarter of year-over-year growth in the last 21 quarters,” chairman and chief executive officer Barbara Smith said on the call.
At the end of the quarter, total available liquidity was $1.4 billion.
Cash and cash equivalents were $475,489,000 as of May 31, 2023, compared to $672,596,000 as of Aug. 31, 2022.
Long-term debt was $1,102,883,000 as of May 31, 2023, compared to $1,113,249,000 as of Aug. 31, 2022.
Current maturities of long-term debt and short-term borrowings were $56,222,000 as of May 31, 2023, compared to $388,796,000 as of Aug. 31, 2022.
Commercial Metals is an Irving, Tex.-based steel and metal manufacturer.
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