Commercial Metals Company (NYSE:CMC) Q1 2020 Earnings Conference Call - Final Transcript

Jan 06, 2020 • 11:00 am ET


Commercial Metals Company (NYSE:CMC) Q1 2020 Earnings Conference Call - Final Transcript


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Hello and welcome everyone to the First Quarter Fiscal 2020 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, U.S. steel import levels, U.S. 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 investment in our new 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 these 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.

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. Please go ahead.

Barbara R. Smith

Thank you, Andrea. Good morning and thank you for joining the call to review CMC's results for the first quarter of fiscal 2020. I'd like to start by wishing everyone a happy New Year as we roll the calendar forward to a new decade. I'll begin the call with highlights for the first quarter. Paul Lawrence will then cover the quarterly financial information in more detail and I will conclude our prepared remarks with a discussion of our outlook for the second quarter of fiscal 2020, after which we will open the call to questions.

As announced in our earnings release this morning, we reported fiscal first quarter 2020 earnings from continuing operations of $82.8 million or $0.69 per diluted share on net sales of $1.4 billion. Excluding the impact of certain facility closure costs, our adjusted earnings from continuing operations were $87.8 million or $0.73 per diluted share.

I'm very proud of the