Commercial Metals Company (NYSE:CMC) Q3 2019 Earnings Conference Call - Final Transcript

Jun 20, 2019 • 02:00 pm ET


Commercial Metals Company (NYSE:CMC) Q3 2019 Earnings Conference Call - Final Transcript


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Hello, and welcome everyone to the Third Quarter Fiscal 2019 Earnings Call for Commercial Metals Company. Today's call is being recorded. After the Company's remarks, we will have a question-and-answer session and we'll have a few instructions at that time.

I would like to remind all participants that during the course of this conference call, the Company will make statements that provide information other than historical information and will include expectations regarding economic conditions, effects of legislation, US steel import levels, US construction activity, demand for finished steel products, the Company's future operations, the Company's future results of operations, the ability to realize the anticipated benefits of our acquisition of certain rebar assets from Gerdau S.A., the investment in our micro mill in Durant, Oklahoma and capital spending. These and other similar statements are considered forward-looking and may involve speculation and are subject to risks and uncertainties that could cause actual results to differ materially from those expectations. These statements reflect the Company's beliefs based on current conditions, but are subject to certain risks and uncertainties, including those that are described in the Risk Factors section of the Company's latest annual report on Form 10-K and subsequent quarterly reports on Form 10-Q. Although, these statements are based on Management's current expectations and beliefs, CMC offers no assurance that these expectations or beliefs will prove to have been correct and actual results may vary materially.

All statements are made only as of this date, except as required by law, CMC does not assume any obligation to update, amend or clarify these statements in connection with future events, changes in assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or otherwise. Some numbers presented will be non-GAAP financial measures and reconciliations for such numbers can be found in the Company's earnings release or on the Company's website. Unless stated otherwise, all references made to year or quarter end are references to the Company's fiscal year or fiscal quarter.

And now for opening remarks and introductions, I will turn the call over to the Chairman of the Board, President and Chief Executive Officer of Commercial Metals Company, Ms. Barbara Smith.

Barbara R. Smith

Thank you, Jamie. Good afternoon and thank you for joining the call to review CMC's results for the third quarter of fiscal 2019. I will begin the call with highlights for the third quarter. Mary Lindsey will then cover the quarter financial information in more detail and I will conclude our prepared remarks with a discussion of our outlook for the fourth quarter of fiscal 2019. After which, we will open the call to questions.

As announced in our earnings release this morning, we reported fiscal third quarter 2019 earnings from continuing operations of $78.6 million or $0.66 per diluted share on net sales of $1.6 billion. Excluding the impact of certain integration costs, our adjusted earnings from continuing operations were $80.4 million or $0.67 per diluted share. Also, as noted in our press release from yesterday, the Board of Directors