Post Earnings Coverage as Schnitzer Steel’s Top-line Improved 4%

Upcoming AWS Coverage on ArcelorMittal

LONDON, UK / ACCESSWIRE / January 10, 2017 / Active Wall St. announces its post-earnings coverage on Schnitzer Steel Industries, Inc. (NASDAQ: SCHN). The Company disclosed its financial results for the first quarter fiscal 2017 (Q1 FY17) on January 05, 2017. The Portland, Oregon-based Company’s quarterly revenues grew 4% y-o-y. The Company also reported net loss for the period. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Schnitzer Steel Industries’ competitors within the Steel & Iron space, ArcelorMittal (NYSE: MT), is estimated to report earnings on February 03, 2017. AWS will be initiating a research report on ArcelorMittal following the release of its earnings results.

Today, AWS is promoting its earnings coverage on SCHN; touching on MT. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=SCHN

http://www.activewallst.com/registration-3/?symbol=MT

Earnings Reviewed

Schnitzer Steel posted total revenue of $334.16 million in Q1 FY17 compared to $321.20 million recorded in Q1 FY16. However, total revenue numbers marginally lagged market forecasts by $15.67 million. Due stronger export demand, ferrous sales volumes were up by 4% in Q1 FY17 to 834 thousand long tons from 805 thousand long tons in the previous year same quarter. Furthermore, non-ferrous sales volumes surge 22% in Q1 FY17 to 136.06 thousand pound from 111.08 thousand pound in the last year’s comparable quarter.

The ferrous and nonferrous scrap metal recycler’s net loss attributed to Schnitzer Steel Industries narrowed down to $1.33 million, or $0.05 loss per diluted share, in Q1 FY17 from $5.30 million, or $0.20 loss per diluted share, in Q1 FY16. The Company’s adjusted net loss from continuing operations attributed to Schnitzer Steel Industries for the reported quarter stood at $0.85 million, or $0.03 loss per diluted share, compared to $3.62 million, or $0.13 loss per diluted share, in Q1 FY16. Furthermore, Wall Street had expected the Company to report adjusted net loss of $0.04 per diluted share.

Operating Metrics

For Q1 FY17, Schnitzer Steel Industries’ selling, general, and administrative expenses were down to $37.49 million in Q1 FY17 from $38.42 million in Q1 FY16. The Company reported operating income of $0.59 million versus operating loss of $4.03 million in Q1 FY16. Furthermore, adjusted operating profit for Q1 FY17 was $1.05 million compared to adjusted operating loss of $2.10 million in the previous year comparable period.

Segment-wise

Schnitzer Steel’s Auto and Metals Recycling segment revenue came in at $304.94 million in Q1 FY17 compared to $272.97 million in the previous year quarter. Furthermore, the segment operating income surged to $12.42 million in Q1 FY17 from $2.04 million recorded in the year ago same quarter.

During Q1 FY17, the Company’s Steel Manufacturing Business generated $52.60 million as revenues compared to $71.90 million in prior year’s same quarter. The segment reported operating loss of $3.08 million in Q1 FY17 versus operating income of $2.75 million in the year ago quarter. The segment sold 101 thousand tons of finished steel products at $492 per short ton in Q1 FY17 compared to 123 thousand tons of finished steel at $554 per short ton in the last year corresponding period. Furthermore, rolling mill utilization was 65% in Q1 FY17 against 68% in the Q1 FY16.

Cash Matters and Balance Sheet

During the three months ended November 30, 2016, net cash provided by operating activities declined to $5.93 million from $40.63 million in the year ago comparable period. Schnitzer Steel had cash and cash equivalents worth $8.10 million at the close of its books on November 30, 2016, versus cash and cash equivalents worth $26.82 million as on August 31, 2016. The Company’s long-term debt stood at $186.94 million as on November 30, 2016, compared to $184.14 million as on August 31, 2016.

Stock Performance

On Monday, January 09, 2017, Schnitzer Steel Industries’ share price finished the trading session at $23.60, slipping 1.17%. A total volume of 622.52 thousand shares exchanged hands, which was higher than the 3 months average volume of 442.19 thousand shares. The stock has surged 13.45% in the last three months, 23.35% in the past six months, and 94.39% in the previous twelve months. The stock has a dividend yield of 3.18% and currently has a market cap of $673.78 million.

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