Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) Q2 2020 Earnings Conference Call - Final Transcript

Apr 02, 2020 • 11:30 am ET


Schnitzer Steel Industries, Inc. (NASDAQ:SCHN) Q2 2020 Earnings Conference Call - Final Transcript


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Tamara Lundgren

operating. As always, ensuring the health and welfare of our employees and all who visit our sites, is our top priority. Accordingly, we are following all CDC and state and local health department guidelines, and we've implemented infection control measures at all of our sites, travel and meeting restrictions, and other social distancing measures. We are encouraging all employees to practice good hygiene and to stay home and seek medical attention if they feel sick. We realized that this situation is stressful for all, and we are actively communicating with our employees regarding resources we can provide in support of their physical and mental wellbeing.

I'm very proud of the extraordinary efforts of all our employees. You have not missed a beat in transitioning to a new normal working environment, whether that means new protocols in operations, or working remotely from home. At the same time, you've shown enormous generosity, whether in donating masks to local hospitals, providing support to local food banks and the American Red Cross, or supporting one another as situations change. Your actions have reflected the collaboration, innovation and resilience that define our culture and our company.

I also want to especially highlight the work of our frontline team members who have deployed new work processes to protect our employees and all visitors to our sites, while continuing to work safely and deliver improved safety performance. Fiscal '19 was the safest year recorded in our company's history, and we have continued to make progress by further improving our TCIR and LTIR trends through the first half of this fiscal year. To all our employees listening to the call this morning, it has been inspiring to see you execute on our mission to support our country's critical infrastructure and essential businesses. I want to thank you again for everything that you're doing for our country, our communities, and our company.

In addition to safety, our commitment to our other multiyear sustainability goals, as shown on Slide 5, is even more important in today's environment. These goals are focused on conserving resources, reducing waste and emissions, maintaining an ethical, engaged and inclusive workplace and giving back to the communities where we operate. During the quarter, we were recognized by several very well respected organizations for various aspects of our sustainability program. And I want to acknowledge the contributions of all our teammates, as these honors reflect your commitment to our core values and culture.

So, let's turn out to Slide 6. The rapidly evolving environment that we are in today presents unique and unprecedented challenges. It's worth noting, however, that we are a company that was founded in 1906, and we've experienced downturns and volatility from the great depression to the great recession. There's a legacy at our company of facing challenges head on and navigating through the toughest of times. We have a strong balance sheet with low net leverage and interest expense and significant cash on hand to weather declines in demand. We also have a