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Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the period ended September 30, 2004
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OR
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Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Commission File Number 0-21719
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Steel Dynamics, Inc.
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(Exact name of registrant as specified in its charter)
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Indiana
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35-1929476
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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6714 Pointe Inverness Way, Suite 200, Fort Wayne, IN
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46804
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(Address of principal executive offices)
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(Zip Code)
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Registrants telephone number, including area code: (260) 459-3553
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Explanatory Note
The purpose of this amendment on Form 10-Q/A to the Quarterly Report on Form 10-Q of Steel Dynamics, Inc. for the quarter ended September 30, 2004, is to provide revised forms of certification on Exhibits 31.1 and 31.2, to conform to the format prescribed by Item 601(b)(31) of Regulation S-K, as well as to revise the form of Item 4, subsection (b) regarding Changes in Internal Controls (no changes). These changes constitute only format revisions.
No attempt has been made in this Form 10-Q/A to modify or update any financial information or other disclosures presented in the original report on Form 10-Q, nor does this Form 10-Q/A reflect events occurring after the filing of the original Form 10-Q or modify or update those disclosures, including exhibits to the Form 10-Q. Information described herein reflects the disclosures made at the time of the original filing of the Form 10-Q on November 8, 2004. Accordingly, this Form 10-Q/A should be read in conjunction with our filings made with the Securities and Exchange Commission subsequent to the filing of the original Form 10-Q, including any amendments to those filings.
PART I. Financial Information
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Page
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Item 1.
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Consolidated Financial Information:
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September 30,
2004 |
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December 31,
2003 |
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(unaudited)
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ASSETS
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Current assets:
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Cash and equivalents
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$
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159,674
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$
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65,430
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Accounts receivable, net
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202,601
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100,933
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Accounts receivable-related parties
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45,151
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25,090
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Inventories
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285,790
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184,496
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Deferred taxes
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8,883
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23,217
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Other current assets
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15,383
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8,769
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Total current assets
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717,482
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407,935
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Property, plant and equipment, net
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1,014,698
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1,001,116
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Restricted cash
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1,649
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2,636
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Other assets
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31,184
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36,752
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Total assets
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$
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1,765,013
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$
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1,448,439
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LIABILITIES AND STOCKHOLDERS EQUITY
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Current liabilities:
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Accounts payable
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$
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144,181
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$
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42,698
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Accounts payable-related parties
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1,300
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36,628
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Accrued interest
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10,888
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11,312
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Other accrued expenses
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69,490
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46,678
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Current maturities of long-term debt
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2,277
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15,988
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Total current liabilities
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228,136
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153,304
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Long-term debt, including unamortized bond premium of $7,569 and $8,834, as of September 30, 2004 and December 31, 2003, respectively
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548,724
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591,586
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Deferred taxes
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168,775
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115,703
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Minority interest
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2,274
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613
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Commitments and contingencies
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Stockholders equity:
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Common stock voting, $.01 par value; 100,000,000 shares authorized; 52,130,841 and 51,011,839 shares issued; and 49,769,186 and 48,645,246 shares outstanding, as of September 30, 2004 and December 31, 2003, respectively
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520
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509
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Treasury stock, at cost; 2,361,655 and 2,366,593 shares, at September 30, 2004 and December 31, 2003, respectively
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(28,719
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)
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(28,670
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)
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Additional paid-in capital
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384,185
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362,328
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Retained earnings
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462,671
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257,254
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Other accumulated comprehensive loss
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(1,553
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)
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(4,188
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)
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Total stockholders equity
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817,104
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587,233
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Total liabilities and stockholders equity
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$
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1,765,013
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$
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1,448,439
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2004
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2003
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2004
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2003
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Net sales:
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Unrelated parties
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$
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562,552
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$
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233,594
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$
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1,372,535
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$
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613,082
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Related parties
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72,189
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30,358
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172,008
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95,006
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Total net sales
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634,741
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253,952
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1,544,543
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708,088
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Cost of goods sold
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406,489
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215,097
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1,091,503
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587,790
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Gross profit
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228,252
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38,855
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453,040
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120,298
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Selling, general and administrative expenses
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34,992
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16,010
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86,124
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45,667
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Operating income
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193,260
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22,845
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366,916
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74,631
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Interest expense
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10,469
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8,251
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30,565
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26,355
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Other income
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(458
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)
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|
(112
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)
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(5,704
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)
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(362
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)
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|
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|
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Income before income taxes
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183,249
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14,706
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342,055
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48,638
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Income taxes
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|
|
69,635
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|
|
5,515
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|
|
129,187
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18,239
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|
|
|
|
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|
|
|
|
|
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Net income
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|
$
|
113,614
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$
|
9,191
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$
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212,868
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$
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30,399
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|
|
|
|
|
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|
|
|
|
|
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Basic earnings per share
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$
|
2.29
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|
$
|
.19
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$
|
4.32
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$
|
.64
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|
|
|
|
|
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|
|
|
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|
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Weighted average common shares outstanding
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|
|
49,611
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47,797
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|
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49,299
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|
47,683
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|
|
|
|
|
|
|
|
|
|
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Diluted earnings per share, including effect of assumed conversions
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|
$
|
2.01
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$
|
.19
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$
|
3.80
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$
|
.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Weighted average common shares and share equivalents outstanding
|
|
|
56,881
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|
|
48,122
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|
|
56,546
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|
|
47,920
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|
|
|
|
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|
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|
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|
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Dividends declared per share
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|
$
|
.15
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$
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$
|
.15
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$
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|
|
|
|
|
|
|
|
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
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2004
|
|
2003
|
|
2004
|
|
2003
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Operating activities:
|
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|
|
|
|
|
|
|
|
|
|
|
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Net income
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|
$
|
113,614
|
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$
|
9,191
|
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$
|
212,868
|
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$
|
30,399
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
21,735
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|
|
17,472
|
|
|
64,143
|
|
|
50,391
|
|
Deferred income taxes
|
|
|
34,272
|
|
|
9,491
|
|
|
66,871
|
|
|
20,921
|
|
Loss on disposal of property, plant and equipment
|
|
|
583
|
|
|
|
|
|
757
|
|
|
|
|
Minority interest
|
|
|
451
|
|
|
86
|
|
|
1,661
|
|
|
(541
|
)
|
Changes in certain assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
(48,598
|
)
|
|
(4,879
|
)
|
|
(121,729
|
)
|
|
1,361
|
|
Inventories
|
|
|
(5,620
|
)
|
|
2,043
|
|
|
(101,294
|
)
|
|
(18,177
|
)
|
Other assets
|
|
|
6,612
|
|
|
(3,124
|
)
|
|
(4,152
|
)
|
|
(4,920
|
)
|
Accounts payable
|
|
|
24,519
|
|
|
8,649
|
|
|
66,154
|
|
|
24,329
|
|
Accrued expenses
|
|
|
5,455
|
|
|
524
|
|
|
21,825
|
|
|
(5,966
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities
|
|
|
153,023
|
|
|
39,453
|
|
|
207,104
|
|
|
97,797
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant and equipment
|
|
|
(18,211
|
)
|
|
(28,883
|
)
|
|
(72,872
|
)
|
|
(89,988
|
)
|
Other investing activities
|
|
|
55
|
|
|
|
|
|
55
|
|
|
(8,283
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities
|
|
|
(18,156
|
)
|
|
(28,883
|
)
|
|
(72,817
|
)
|
|
(98,271
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of long-term debt
|
|
|
162
|
|
|
11,343
|
|
|
164,284
|
|
|
59,823
|
|
Repayments of long-term debt
|
|
|
(17,450
|
)
|
|
(14,588
|
)
|
|
(220,857
|
)
|
|
(64,488
|
)
|
Issuance of common stock, net of expenses and proceeds and tax benefits from exercise of stock options
|
|
|
7,244
|
|
|
2,744
|
|
|
21,869
|
|
|
4,414
|
|
Issuance (purchase) of treasury stock
|
|
|
189
|
|
|
|
|
|
(49
|
)
|
|
(176
|
)
|
Dividends paid
|
|
|
(3,719
|
)
|
|
|
|
|
(3,719
|
)
|
|
|
|
Debt issuance costs
|
|
|
(60
|
)
|
|
(413
|
)
|
|
(1,571
|
)
|
|
(1,733
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in financing activities
|
|
|
(13,634
|
)
|
|
(914
|
)
|
|
(40,043
|
)
|
|
(2,160
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and equivalents
|
|
|
121,233
|
|
|
9,656
|
|
|
94,244
|
|
|
(2,634
|
)
|
Cash and equivalents at beginning of period
|
|
|
38,441
|
|
|
11,928
|
|
|
65,430
|
|
|
24,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period
|
|
$
|
159,674
|
|
$
|
21,584
|
|
$
|
159,674
|
|
$
|
21,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest
|
|
$
|
15,545
|
|
$
|
14,662
|
|
$
|
35,890
|
|
$
|
37,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for federal and state income taxes
|
|
$
|
13,679
|
|
$
|
|
|
$
|
25,638
|
|
$
|
7,474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||
|
|
|
|
|
|
||||||||
|
|
|
2004
|
|
|
2003
|
|
|
2004
|
|
|
2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as reported
|
|
$
|
113,614
|
|
$
|
9,191
|
|
$
|
212,868
|
|
$
|
30,399
|
|
Stock-based employee compensation expense, using the fair value based method, net of related tax effect
|
|
|
(944
|
)
|
|
(559
|
)
|
|
(2,373
|
)
|
|
(1,686
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, pro forma
|
|
$
|
112,670
|
|
$
|
8,632
|
|
$
|
210,495
|
|
$
|
28,713
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
$
|
2.29
|
|
$
|
.19
|
|
$
|
4.32
|
|
$
|
.64
|
|
Pro forma
|
|
|
2.27
|
|
|
.18
|
|
|
4.27
|
|
|
.60
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As reported
|
|
$
|
2.01
|
|
$
|
.19
|
|
$
|
3.80
|
|
$
|
.63
|
|
Pro forma
|
|
|
1.99
|
|
|
.18
|
|
|
3.76
|
|
|
.60
|
|
|
|
Three Months Ended
|
|
||||||||||||||||
|
|
|
|
||||||||||||||||
|
|
2004
|
|
2003
|
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
|
Net Income
(Numerator) |
|
Shares
(Denominator) |
|
Per Share
Amount |
|
Net Income
(Numerator) |
|
Shares
(Denominator) |
|
Per Share
Amount |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
113,614
|
|
|
49,611
|
|
$
|
2.29
|
|
$
|
9,191
|
|
|
47,797
|
|
$
|
.19
|
|
Dilutive stock option effect
|
|
|
|
|
|
507
|
|
|
|
|
|
|
|
|
325
|
|
|
|
|
Convertible subordinated debt effect
|
|
|
671
|
|
|
6,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
114,285
|
|
|
56,881
|
|
$
|
2.01
|
|
$
|
9,191
|
|
|
48,122
|
|
$
|
.19
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
||||||||||||||||
|
|
|
|
||||||||||||||||
|
|
2004
|
|
2003
|
|
||||||||||||||
|
|
|
|
|
|
||||||||||||||
|
|
Net Income
(Numerator) |
|
Shares
(Denominato)r |
|
Per Share
Amount |
|
Net Income
(Numerator) |
|
Shares
(Denominator) |
|
Per Share
Amount |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
$
|
212,868
|
|
|
49,299
|
|
$
|
4.32
|
|
$
|
30,399
|
|
|
47,683
|
|
$
|
.64
|
|
Dilutive stock option effect
|
|
|
|
|
|
484
|
|
|
|
|
|
|
|
|
237
|
|
|
|
|
Convertible subordinated debt effect
|
|
|
1,998
|
|
|
6,763
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
214,866
|
|
|
56,546
|
|
$
|
3.80
|
|
$
|
30,399
|
|
|
47,920
|
|
$
|
.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2004
|
|
2003
|
|
||
|
|
|
|
|
|
|
|
Stock options
|
|
|
|
|
|
624
|
|
Convertible subordinated debt
|
|
|
|
|
|
6,763
|
|
|
|
|
|
|
|
|
|
Excluded common share equivalents
|
|
|
|
|
|
7,387
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||
|
|
|
|
|
|
||||||||
|
|
2004
|
|
2003
|
|
2004
|
|
2003
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders
|
|
$
|
113,614
|
|
$
|
9,191
|
|
$
|
212,868
|
|
$
|
30,399
|
|
Unrealized gain on derivative instruments
|
|
|
873
|
|
|
957
|
|
|
2,696
|
|
|
1,932
|
|
Unrealized gain (loss) on available-for-sale securities
|
|
|
(17
|
)
|
|
195
|
|
|
(61
|
)
|
|
252
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
$
|
114,470
|
|
$
|
10,343
|
|
$
|
215,503
|
|
$
|
32,583
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hedge ineffectiveness gain
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2004 |
|
December 31,
2003 |
|
||
|
|
|
|
|
|
|
|
Raw materials
|
|
$
|
95,689
|
|
$
|
46,347
|
|
Supplies
|
|
|
70,989
|
|
|
60,420
|
|
Work-in-progress
|
|
|
42,472
|
|
|
15,996
|
|
Finished goods
|
|
|
76,640
|
|
|
61,733
|
|
|
|
|
|
|
|
|
|
Total inventories
|
|
$
|
285,790
|
|
$
|
184,496
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
||||||||
|
|
|
|
|
|
||||||||
|
|
|
2004
|
|
|
2003
|
|
|
2004
|
|
|
2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Steel Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
|
|
$
|
592,814
|
|
$
|
231,276
|
|
$
|
1,435,449
|
|
$
|
647,114
|
|
Other segments
|
|
|
28,837
|
|
|
14,374
|
|
|
72,103
|
|
|
37,179
|
|
Operating income
|
|
|
208,451
|
|
|
24,536
|
|
|
400,802
|
|
|
87,839
|
|
Assets
|
|
|
1,360,037
|
|
|
1,106,122
|
|
|
1,360,037
|
|
|
1,106,122
|
|
Steel Scrap Substitute Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Other segments
|
|
|
10,745
|
|
|
9
|
|
|
27,294
|
|
|
11
|
|
Operating loss
|
|
|
(3,347
|
)
|
|
(2,951
|
)
|
|
(9,388
|
)
|
|
(7,339
|
)
|
Assets
|
|
|
166,288
|
|
|
157,486
|
|
|
166,288
|
|
|
157,486
|
|
All Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
|
|
$
|
41,927
|
|
$
|
22,676
|
|
$
|
109,094
|
|
$
|
60,974
|
|
Other segments
|
|
|
192
|
|
|
252
|
|
|
836
|
|
|
508
|
|
Operating income (loss)
|
|
|
(10,537
|
)
|
|
1,655
|
|
|
(21,491
|
)
|
|
(6,458
|
)
|
Assets
|
|
|
1,739,791
|
|
|
182,289
|
|
|
1,739,791
|
|
|
182,289
|
|
Eliminations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
External
|
|
$
|
|
|
$
|
|
|
$
|
|
|
$
|
|
|
Other segments
|
|
|
(39,774
|
)
|
|
(14,635
|
)
|
|
(100,233
|
)
|
|
(37,698
|
)
|
Operating income (loss)
|
|
|
(1,307
|
)
|
|
(395
|
)
|
|
(3,007
|
)
|
|
589
|
|
Assets
|
|
|
(1,501,103
|
)
|
|
(105,581
|
)
|
|
(1,501,103
|
)
|
|
(105,581
|
)
|
Consolidated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
634,741
|
|
$
|
253,952
|
|
$
|
1,544,543
|
|
$
|
708,088
|
|
Operating income
|
|
|
193,260
|
|
|
22,845
|
|
|
366,916
|
|
|
74,631
|
|
Assets
|
|
|
1,765,013
|
|
|
1,340,316
|
|
|
1,765,013
|
|
|
1,340,316
|
|
As of September 30, 2004
|
|
Parent
|
|
Guarantors
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
154,460
|
|
$
|
595
|
|
$
|
4,619
|
|
$
|
|
|
$
|
159,674
|
|
|
Accounts receivable
|
|
|
190,347
|
|
|
162,967
|
|
|
26,905
|
|
|
(132,467
|
)
|
|
247,752
|
|
|
Inventories
|
|
|
207,039
|
|
|
51,946
|
|
|
27,693
|
|
|
(888
|
)
|
|
285,790
|
|
|
Other current assets
|
|
|
23,102
|
|
|
295
|
|
|
1,047
|
|
|
(178
|
)
|
|
24,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
574,948
|
|
|
215,803
|
|
|
60,264
|
|
|
(133,533
|
)
|
|
717,482
|
|
|
Property, plant and equipment, net
|
|
|
724,090
|
|
|
135,468
|
|
|
155,257
|
|
|
(117
|
)
|
|
1,014,698
|
|
|
Other assets
|
|
|
392,163
|
|
|
85,320
|
|
|
5
|
|
|
(444,655
|
)
|
|
32,833
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,691,201
|
|
$
|
436,591
|
|
$
|
215,526
|
|
$
|
(578,305
|
)
|
$
|
1,765,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
120,767
|
|
$
|
25,351
|
|
$
|
11,926
|
|
$
|
(12,563
|
)
|
$
|
145,481
|
|
|
Accrued expenses
|
|
|
66,396
|
|
|
6,503
|
|
|
8,504
|
|
|
(1,025
|
)
|
|
80,378
|
|
|
Current maturities of long-term debt
|
|
|
1,607
|
|
|
|
|
|
693
|
|
|
(23
|
)
|
|
2,277
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
188,770
|
|
|
31,854
|
|
|
21,123
|
|
|
(13,611
|
)
|
|
228,136
|
|
|
Other liabilities
|
|
|
125,721
|
|
|
164,261
|
|
|
29,666
|
|
|
(150,873
|
)
|
|
168,775
|
|
|
Long-term debt
|
|
|
547,896
|
|
|
|
|
|
982
|
|
|
(154
|
)
|
|
548,724
|
|
|
Minority interest
|
|
|
|
|
|
|
|
|
|
|
|
2,274
|
|
|
2,274
|
|
|
Common stock
|
|
|
520
|
|
|
89,426
|
|
|
202,184
|
|
|
(291,610
|
)
|
|
520
|
|
|
Treasury stock
|
|
|
(28,719
|
)
|
|
|
|
|
|
|
|
|
|
|
(28,719
|
)
|
|
Additional paid in capital
|
|
|
384,185
|
|
|
116,868
|
|
|
|
|
|
(116,868
|
)
|
|
384,185
|
|
|
Retained earnings
|
|
|
474,381
|
|
|
34,182
|
|
|
(38,429
|
)
|
|
(7,463
|
)
|
|
462,671
|
|
|
Other accumulated comprehensive loss
|
|
|
(1,553
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,553
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity
|
|
|
828,814
|
|
|
240,476
|
|
|
163,755
|
|
|
(415,941
|
)
|
|
817,104
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity
|
|
$
|
1,691,201
|
|
$
|
436,591
|
|
$
|
215,526
|
|
$
|
(578,306
|
)
|
$
|
1,765,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of December 31, 2003
|
|
Parent
|
|
Guarantors
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
|
|
$
|
64,008
|
|
$
|
496
|
|
$
|
926
|
|
$
|
|
|
$
|
65,430
|
|
Accounts receivable
|
|
|
123,315
|
|
|
119,785
|
|
|
13,037
|
|
|
(130,114
|
)
|
|
126,023
|
|
Inventories
|
|
|
164,024
|
|
|
2,579
|
|
|
18,397
|
|
|
(504
|
)
|
|
184,496
|
|
Other current assets
|
|
|
32,938
|
|
|
68
|
|
|
168
|
|
|
(1,188
|
)
|
|
31,986
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
384,285
|
|
|
122,928
|
|
|
32,528
|
|
|
(131,806
|
)
|
|
407,935
|
|
Property, plant and equipment, net
|
|
|
755,707
|
|
|
96,757
|
|
|
148,769
|
|
|
(117
|
)
|
|
1,001,116
|
|
Other assets
|
|
|
260,538
|
|
|
36,855
|
|
|
262
|
|
|
(258,267
|
)
|
|
39,388
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
1,400,530
|
|
$
|
256,540
|
|
$
|
181,559
|
|
$
|
(390,190
|
)
|
$
|
1,448,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
64,069
|
|
$
|
15,618
|
|
$
|
11,025
|
|
$
|
(11,386
|
)
|
$
|
79,326
|
|
Accrued expenses
|
|
|
52,365
|
|
|
1,699
|
|
|
5,046
|
|
|
(1,120
|
)
|
|
57,990
|
|
Current maturities of long-term debt
|
|
|
11,765
|
|
|
|
|
|
4,243
|
|
|
(20
|
)
|
|
15,988
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
128,199
|
|
|
17,317
|
|
|
20,314
|
|
|
(12,526
|
)
|
|
153,304
|
|
Other liabilities
|
|
|
108,680
|
|
|
73,310
|
|
|
(13,587
|
)
|
|
(52,700
|
)
|
|
115,703
|
|
Long-term debt
|
|
|
575,608
|
|
|
|
|
|
24,826
|
|
|
(8,848
|
)
|
|
591,586
|
|
Minority interest
|
|
|
28
|
|
|
|
|
|
|
|
|
585
|
|
|
613
|
|
Common stock
|
|
|
509
|
|
|
46,482
|
|
|
189,735
|
|
|
(236,217
|
)
|
|
509
|
|
Treasury stock
|
|
|
(28,670
|
)
|
|
|
|
|
|
|
|
|
|
|
(28,670
|
)
|
Additional paid in capital
|
|
|
362,328
|
|
|
116,868
|
|
|
|
|
|
(116,868
|
)
|
|
362,328
|
|
Retained earnings
|
|
|
257,919
|
|
|
2,563
|
|
|
(39,612
|
)
|
|
36,384
|
|
|
257,254
|
|
Other accumulated comprehensive loss
|
|
|
(4,071
|
)
|
|
|
|
|
(117
|
)
|
|
|
|
|
(4,188
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders equity
|
|
|
588,015
|
|
|
165,913
|
|
|
150,006
|
|
|
(316,701
|
)
|
|
587,233
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders equity
|
|
$
|
1,400,530
|
|
$
|
256,540
|
|
$
|
181,559
|
|
$
|
(390,190
|
)
|
$
|
1,448,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantors
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
552,976
|
|
$
|
621,651
|
|
$
|
52,865
|
|
$
|
(592,751
|
)
|
$
|
634,741
|
|
Cost of goods sold
|
|
|
353,881
|
|
|
608,348
|
|
|
47,666
|
|
|
(603,406
|
)
|
|
406,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
199,095
|
|
|
13,303
|
|
|
5,199
|
|
|
10,655
|
|
|
228,252
|
|
Selling, general and administrative
|
|
|
28,210
|
|
|
4,486
|
|
|
3,097
|
|
|
(801
|
)
|
|
34,992
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
170,885
|
|
|
8,817
|
|
|
2,102
|
|
|
11,456
|
|
|
193,260
|
|
Interest expense
|
|
|
9,354
|
|
|
742
|
|
|
378
|
|
|
(5
|
)
|
|
10,469
|
|
Other (income) expense
|
|
|
37,153
|
|
|
(37,597
|
)
|
|
(58
|
)
|
|
44
|
|
|
(458
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes and equity in net loss of subsidiaries
|
|
|
124,378
|
|
|
45,672
|
|
|
1,782
|
|
|
11,417
|
|
|
183,249
|
|
Income taxes
|
|
|
48,118
|
|
|
16,265
|
|
|
677
|
|
|
4,575
|
|
|
69,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
76,260
|
|
|
29,407
|
|
|
1,105
|
|
|
6,842
|
|
|
113,614
|
|
Equity in net income of subsidiaries
|
|
|
30,511
|
|
|
|
|
|
|
|
|
(30,511
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
106,771
|
|
$
|
29,407
|
|
$
|
1,105
|
|
$
|
(23,669
|
)
|
$
|
113,614
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantors
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
245,650
|
|
$
|
|
|
$
|
22,938
|
|
$
|
(14,636
|
)
|
$
|
253,952
|
|
Cost of good sold
|
|
|
206,871
|
|
|
|
|
|
22,600
|
|
|
(14,374
|
)
|
|
215,097
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
38,779
|
|
|
|
|
|
338
|
|
|
(262
|
)
|
|
38,855
|
|
Selling, general and administration
|
|
|
11,702
|
|
|
1,821
|
|
|
2,354
|
|
|
133
|
|
|
16,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
27,077
|
|
|
(1,821
|
)
|
|
(2,016
|
)
|
|
(395
|
)
|
|
22,845
|
|
Interest expense
|
|
|
8,362
|
|
|
(333
|
)
|
|
395
|
|
|
(173
|
)
|
|
8,251
|
|
Other (income) expense
|
|
|
14,942
|
|
|
(15,237
|
)
|
|
(20
|
)
|
|
203
|
|
|
(112
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes and equity in net loss of subsidiaries
|
|
|
3,773
|
|
|
13,749
|
|
|
(2,391
|
)
|
|
(425
|
)
|
|
14,706
|
|
Income taxes
|
|
|
1,621
|
|
|
4,790
|
|
|
(896
|
)
|
|
|
|
|
5,515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,152
|
|
|
8,959
|
|
|
(1,495
|
)
|
|
(425
|
)
|
|
9,191
|
|
Equity in net income of subsidiaries
|
|
|
7,464
|
|
|
|
|
|
|
|
|
(7,464
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
9,616
|
|
$
|
8,959
|
|
$
|
(1,495
|
)
|
$
|
(7,889
|
)
|
$
|
9,191
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantor
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
1,388,980
|
|
$
|
1,507,552
|
|
$
|
137,225
|
|
$
|
(1,489,214
|
)
|
$
|
1,544,543
|
|
Cost of goods sold
|
|
|
974,114
|
|
|
1,476,862
|
|
|
125,329
|
|
|
(1,484,802
|
)
|
|
1,091,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
414,866
|
|
|
30,690
|
|
|
11,896
|
|
|
(4,412
|
)
|
|
453,040
|
|
Selling, general and administrative
|
|
|
66,640
|
|
|
11,754
|
|
|
8,799
|
|
|
(1,069
|
)
|
|
86,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
348,226
|
|
|
18,936
|
|
|
3,097
|
|
|
(3,343
|
)
|
|
366,916
|
|
Interest expense
|
|
|
29,226
|
|
|
113
|
|
|
1,221
|
|
|
5
|
|
|
30,565
|
|
Other (income) expense
|
|
|
85,300
|
|
|
(91,041
|
)
|
|
(60
|
)
|
|
97
|
|
|
(5,704
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes and Equity in net loss of subsidiaries
|
|
|
233,700
|
|
|
109,864
|
|
|
1,936
|
|
|
(3,445
|
)
|
|
342,055
|
|
Income taxes
|
|
|
90,495
|
|
|
39,044
|
|
|
735
|
|
|
(1,087
|
)
|
|
129,187
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
143,205
|
|
|
70,820
|
|
|
1,201
|
|
|
(2,358
|
)
|
|
212,868
|
|
Equity in net income of subsidiaries
|
|
|
72,020
|
|
|
|
|
|
|
|
|
(72,020
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
215,225
|
|
$
|
70,820
|
|
$
|
1,201
|
|
$
|
(74,378
|
)
|
$
|
212,868
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantor
|
|
Combined
non-guarantors |
|
Consolidating
adjustments |
|
Total
consolidated |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
684,293
|
|
$
|
|
|
$
|
61,493
|
|
$
|
(37,698
|
)
|
$
|
708,088
|
|
Cost of good sold
|
|
|
563,616
|
|
|
|
|
|
62,165
|
|
|
(37,991
|
)
|
|
587,790
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit (loss)
|
|
|
120,677
|
|
|
|
|
|
(672
|
)
|
|
293
|
|
|
120,298
|
|
Selling, general and administration
|
|
|
35,917
|
|
|
3,276
|
|
|
6,770
|
|
|
(296
|
)
|
|
45,667
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
84,760
|
|
|
(3,276
|
)
|
|
(7,442
|
)
|
|
589
|
|
|
74,631
|
|
Interest expense
|
|
|
26,430
|
|
|
(853
|
)
|
|
1,280
|
|
|
(502
|
)
|
|
26,355
|
|
Other (income) expense
|
|
|
41,294
|
|
|
(42,226
|
)
|
|
(22
|
)
|
|
592
|
|
|
(362
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes and equity in net loss of subsidiaries
|
|
|
17,036
|
|
|
39,803
|
|
|
(8,700
|
)
|
|
499
|
|
|
48,638
|
|
Income taxes
|
|
|
7,587
|
|
|
13,914
|
|
|
(3,262
|
)
|
|
|
|
|
18,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9,449
|
|
|
25,889
|
|
|
(5,438
|
)
|
|
499
|
|
|
30,399
|
|
Equity in net income of subsidiaries
|
|
|
20,451
|
|
|
|
|
|
|
|
|
(20,451
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
29,900
|
|
$
|
25,889
|
|
$
|
(5,438
|
)
|
$
|
(19,952
|
)
|
$
|
30,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantor
|
|
Combined
non-guarantors |
|
Total
consolidated |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operations
|
|
$
|
235,589
|
|
$
|
(17,489
|
)
|
$
|
(10,996
|
)
|
$
|
207,104
|
|
Net cash used in investing activities
|
|
|
(18,367
|
)
|
|
(41,716
|
)
|
|
(12,734
|
)
|
|
(72,817
|
)
|
Net cash provided by (used in) in financing activities
|
|
|
(126,770
|
)
|
|
59,304
|
|
|
27,423
|
|
|
(40,043
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and equivalents
|
|
|
90,452
|
|
|
99
|
|
|
3,693
|
|
|
94,244
|
|
Cash and equivalents at beginning of year
|
|
|
64,008
|
|
|
496
|
|
|
926
|
|
|
65,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and equivalents at end of period
|
|
$
|
154,460
|
|
$
|
595
|
|
$
|
4,619
|
|
$
|
159,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Parent
|
|
Guarantor
|
|
Combined
non-guarantors |
|
Total
consolidated |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operations
|
|
$
|
94,474
|
|
$
|
5,700
|
|
$
|
(2,377
|
)
|
$
|
97,797
|
|
Net cash used in investing activities
|
|
|
(69,865
|
)
|
|
(17,433
|
)
|
|
(10,973
|
)
|
|
(98,271
|
)
|
Net cash provided by (used in) financing activities
|
|
|
(26,222
|
)
|
|
11,778
|
|
|
12,284
|
|
|
(2,160
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in cash and cash equivalents
|
|
|
(1,613
|
)
|
|
45
|
|
|
(1,066
|
)
|
|
(2,634
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
22,530
|
|
|
282
|
|
|
1,406
|
|
|
24,218
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
20,917
|
|
$
|
327
|
|
$
|
340
|
|
$
|
21,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.01
|
Credit Agreement relating to our $230 million senior secured revolving credit facility, dated June 30, 2004 among Steel Dynamics, Inc. as Borrower, certain designated Initial Lenders, General Electric Capital Corporation as Collateral and Administrative Agent, Morgan Stanley Senior Funding, Inc., as Lead Arranger and Syndication Agent, and Harris Trust and Savings Bank and National City Bank as Documentation Agents, and others.
|
|
10.01a
|
First Amendment to Credit Agreement dated October 26, 2004, relating to the Credit Agreement described at Exhibit 10.01.
|
|
|
|
|
31.1
|
Chief Executive Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2
|
Principal Financial Officer Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1
|
Chief Executive Officer Certification pursuant to 18 U.S.C. § 1350
|
|
32.2
|
Principal Financial Officer Certification pursuant to 18 U.S.C. § 1350
|
March 9, 2005
|
STEEL DYNAMICS, INC.
|
|
|
|
|
|
By:
|
/s/ GARY E. HEASLEY
|
|
|
|
|
|
Gary E. Heasley
Chief Financial Officer (Principal Financial and Accounting Officer and Duly Authorized Officer) |