Algoma Steel Group Reports Financial Results for the Three and Nine Months Ended December 31, 2024
Rhea-AI Summary
Algoma Steel Group (NASDAQ: ASTL) reported its financial results for Q4 and full year 2024. The company posted a Q4 consolidated revenue of $590.3 million, down from $615.4 million year-over-year, with a net loss of $66.5 million compared to $84.8 million loss in the prior year.
Key Q4 metrics include:
- Shipments increased 6.3% to 548,802 tons
- Adjusted EBITDA loss of $60.3 million with -10.2% margin
- Average realized steel price of $976 per ton
The company's transformative Electric Arc Furnace (EAF) project is progressing with first steel production expected in April 2025. The cumulative investment reached $740.2 million, with contracted commitments totaling approximately $880 million. The EAF transition is anticipated to reduce annual carbon emissions by 70% and provide 3.7 million tons of annual raw steel production capacity.
Notably, the company faces challenges from new U.S. tariffs on Canadian steel imports, which could materially impact financial performance. Algoma maintains a strong liquidity position with $266.9 million in cash and $361.8 million in unused credit facility availability.
Positive
- EAF project on track for first production in April 2025
- Strong liquidity position with $628.7M in combined cash and credit availability
- 6.3% increase in quarterly shipments to 548,802 tons
- Continued quarterly dividend payment of US$0.05 per share
Negative
- Q4 revenue declined to $590.3M from $615.4M year-over-year
- Q4 Adjusted EBITDA loss of $60.3M with -10.2% margin
- Full year net loss of $139.0M compared to $56.8M profit in prior year
- New 25% U.S. tariffs expected to materially impact financial performance
- Higher production costs with steel cost per ton rising to $1,032 from $1,027
Insights
Algoma Steel's Q4 and full-year 2024 results reveal significant financial deterioration amid challenging market conditions. The $124.8 million operating loss this quarter (vs $36.9 million loss in Q4 2023) and $217.8 million operating loss for the year (vs $185.9 million income previously) reflect severe margin compression. Their Adjusted EBITDA margin collapsed to -10.2% for Q4 and merely 0.9% for the full year, down from 11.2% in 2023.
What's particularly concerning are the newly imposed U.S. tariffs on Canadian steel - 25% ad valorem duties without exclusions - which management explicitly warns will have a "material and adverse impact" on their financial position. This creates significant uncertainty as Algoma ships substantial volumes to U.S. customers.
The company's cost structure shows troubling trends, with cost per ton rising to $1,032 while average realized price fell to $976 per ton - creating negative unit economics. This margin compression occurs despite a 6.3% volume increase in Q4, indicating pricing pressure is overwhelming production efficiency.
The $266.9 million cash position provides some near-term stability, but the combination of operational losses and continued high capital expenditures on the EAF project ($67.8 million in Q4 alone) will pressure liquidity. While the EAF transition represents a vital long-term strategic shift, the timing is precarious given the deteriorating financial performance and new trade barriers.
The maintained quarterly dividend (US$0.05/share) seems inconsistent with the company's financial trajectory and substantial capital requirements, raising questions about capital allocation priorities during this challenging transitional period.
Algoma's Electric Arc Furnace conversion represents a strategically critical but operationally complex transition during a period of market weakness. The project's cold commissioning milestone, despite weather challenges, keeps the initiative largely on track with first steel production expected in April 2025. The contracted commitments now total approximately $880 million, with management indicating they'll land within 5% of the upper end of the budget range – suggesting reasonable project execution despite inflationary pressures in construction.
The EAF transformation addresses several structural disadvantages in Algoma's current operating model. By shifting from blast furnace to electric steelmaking, the company will gain production flexibility, reducing the fixed-cost burden that's currently devastating margins during market downturns. This will ultimately enable 3.7 million tons annual raw steel capacity aligned with downstream finishing capabilities, eliminating a longstanding production imbalance.
However, the worsening financial results create execution risk during this critical transition phase. The persistent negative unit economics (costs exceeding selling prices) risk depleting cash reserves needed for project completion. Additionally, the 70% carbon emissions reduction target is technically achievable but depends on successful operational stabilization post-commissioning.
What's most concerning is the tariff situation, which creates a serious headwind precisely when Algoma needs favorable market conditions to absorb the operational disruption inherent in the blast furnace to EAF transition. The next 12-18 months represent an extraordinarily challenging period where the company must navigate production changeover, new operational learning curves, and potentially market access simultaneously.
Calendar Fourth Quarter Results In-Line with Previously Announced Expectations
Reaffirmed Outlook on Transformative Electric Arc Furnace (EAF) Project, Including First Arc in April
SAULT STE. MARIE, Ontario, March 12, 2025 (GLOBE NEWSWIRE) -- Algoma Steel Group Inc. (NASDAQ: ASTL; TSX: ASTL) (“Algoma” or “the Company”), a leading Canadian producer of hot and cold rolled steel sheet and plate products, today announced results for the three and nine month periods ended December 31, 2024. As previously reported, the Company has changed its fiscal year end from March 31 to December 31, resulting in a transitional nine month fiscal reporting period ending December 31, 2024.
Unless otherwise specified, all amounts are in Canadian dollars.
Business Highlights and Calendar 2024 to Calendar 2023 Fourth Quarter Comparisons
- Consolidated revenue of
$590.3 million , compared to$615.4 million in the prior-year quarter. - Consolidated loss from operations of
$124.8 million , compared to a loss of$36.9 million in the prior-year quarter. - Net loss of
$66.5 million , compared to net loss of$84.8 million in the prior-year quarter. - Adjusted EBITDA loss of
$60.3 million and Adjusted EBITDA margin of (10.2% ), compared to a loss of$1.0 million and (0.2% ) in the prior-year quarter (see “Non-GAAP Measures” below). - Cash flows used in operating activities of
$76.9 million , compared to a use of$47.4 million in the prior-year quarter. - Shipments of 548,802 tons, compared to 516,068 tons in the prior-year quarter.
- Paid quarterly dividend of US
$0.05 /share.
Business Highlights and Calendar 2024 to Calendar 2023 Full Year Comparisons
- Consolidated revenue of
$2,461.7 million , compared to$2,852.6 million the prior-year. - Consolidated loss from operations of
$217.8 million , compared to income of$185.9 million the prior-year. - Net loss of
$139.0 million , compared to net income of$56.8 million the prior-year. - Adjusted EBITDA of
$22.3 million and Adjusted EBITDA margin of0.9% , compared to Adjusted EBITDA of$319.0 million and Adjusted EBITDA margin of11.2% the prior-year (see “Non-GAAP Measures” below). - Cash flows generated by operating activities of
$82.3 million , compared to cash flows generated by operating activities of$269.1 million the prior-year. - Shipments of 2,023,363 tons, compared to 2,206,146 tons in the prior-year.
Michael Garcia, the Company’s Chief Executive Officer, commented, “The entire Algoma team executed extremely well during our calendar fourth quarter. Despite ongoing macroeconomic uncertainty and tariff-related issues driving prices below production costs for much of the industry, we've maintained unwavering focus on two critical priorities: safely operating our existing facilities and progressing our transformative EAF project. After years of planning and construction, I'm thrilled we are rapidly approaching the first arc in furnace one, with first steel production still expected in April.”
Mr. Garcia continued, “We reach this milestone amid turbulence in the North American market, as evolving tariffs on Canadian steel and aluminum imports add further uncertainty. However, we remain confident that the Canadian federal and provincial governments will respond swiftly and appropriately to support the industry. Given the deeply integrated North American supply chain, we believe rational dialogue will prevail between these close allies, restoring normal steel trade. While these tariffs pose a significant challenge, we expect that our transition to EAF steelmaking will strengthen our cost structure and enhance our ability to navigate market uncertainties over the long term.”
Mr. Garcia concluded, “First arc and first steel will represent extraordinary achievements for our company and community, accomplished despite one of the harshest winters we've experienced in years that included extreme cold and unprecedented snowfall. We are about to enter the transition phase of the project, with rising steel production from the EAF augmenting output from our traditional blast furnace operations on the way to processing all of our steel through the EAFs around the end of 2026. 2025 marks the beginning of a new chapter where Algoma begins its journey to become one of the greenest producers of steel in North America while creating lasting value for all stakeholders, and we couldn’t be more excited for what the future holds."
Fourth Quarter Calendar 2024 Financial Results
Fourth quarter revenue totaled
Loss from operations was
Net loss in the fourth quarter was
Adjusted EBITDA in the fourth quarter was a loss of
Full Year Calendar 2024 Financial Results
Revenue for the calendar year 2024 totaled
Loss from operations in calendar 2024 was
Net loss for the calendar year 2024 was
Adjusted EBITDA in the calendar year 2024 was
Electric Arc Furnace
In November 2021, the Company’s Board of Directors (the “Board”) authorized the Company to construct two new state of the art electric arc furnaces (“EAF”) to replace its existing blast furnace and basic oxygen steelmaking operations. The EAF project reached a major milestone in the quarter with the commencement of cold commissioning activities, which are accelerating. Record days of snowfall in late November and early December at the site briefly impacted project work, but the team has been working hard on mitigating these impacts, and as a result the Company now expects first steel production in April 2025.
The Company has now contracted substantially all remaining expected project costs. As of December 31, 2024, the cumulative investment was
Following the transformation to EAF steelmaking, Algoma’s facility is anticipated to have an annual raw steel production capacity of approximately 3.7 million tons, matching its downstream finishing capacity, which is expected to reduce the Company’s annual carbon emissions by approximately
Potential Tariff Impact
On February 1, 2025, President Trump issued three Executive Orders implementing tariff actions pursuant to the International Emergency Economic Powers Act against imported products of Canada (
Liquidity
At quarter end, the Company had cash of
Quarterly Dividend
The Board has declared a regular quarterly dividend in the amount of US
Conference Call and Webcast Details
A webcast and conference call will be held on Thursday, March 13, 2025 at 11:00 a.m. EDT to review the Company’s results for the three and nine month periods ended December 31, 2024, discuss recent events, and conduct a question-and-answer session.
The live webcast and archived replay of the conference call can be accessed on the Investors section of the Company’s website at www.algoma.com. For those unable to access the webcast, the conference call will be accessible domestically or internationally by dialing 877-425-9470 or 201-389-0878, respectively. Upon dialing in, please request to join the Algoma Steel Earnings Call. To access the replay of the call, dial 844-512-2921 (domestic) or 412-317-6671 (international) with passcode 13751799.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company's audited consolidated financial statements for the nine month period ended December 31, 2024 and year ended March 31, 2024, and Management's Discussion & Analysis thereon are available as part of the Company’s Annual Report on Form 40-F under the Company’s profile on the U.S. Securities and Exchange Commission’s (“SEC”) EDGAR website at www.sec.gov and under the Company's profile on SEDAR+ at www.sedarplus.com. These documents, along with the Company’s Annual Information Form, are also available on the Company’s website, www.algoma.com, and shareholders may receive hard copies of such documents free of charge upon request by contacting IR@algoma.com.
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking information” under applicable Canadian securities legislation and “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”), including statements regarding imposed and threatened tariffs, including the impact, timing and resolution thereof, trends in the pricing of steel, Algoma’s expectation to continue to pay a quarterly dividend, Algoma’s transition to EAF steelmaking, including the progress, costs and timing of completion of the Company’s EAF project, expected timing for first EAF steel production and for a complete transition to EAF steelmaking, the Company’s expected annual raw steel production capacity and reduction in carbon emissions following completion of the EAF project, Algoma’s future as a leading producer of green steel, the potential impacts of inflationary pressures, labor availability, global supply chain disruptions on costs, Algoma’s modernization of its plate mill facilities (including annual plate capacity going forward), transformation journey, ability to deliver greater and long-term value, ability to offer North America a secure steel supply and a sustainable future, and investment in its people, and processes, and statements regarding the intended use of proceeds from the Company’s credit facilities and from the Notes, and the Company’s strategy, plans or future financial or operating performance. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “hope,” “strategy,” “future,” “opportunity,” “plan,” “design,” “pipeline,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions. Many factors could cause actual future events to differ materially from the forward-looking statements in this document. Readers should also consider the other risks and uncertainties set forth in the section entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Information” in Algoma’s Annual Information Form, filed by Algoma with applicable Canadian securities regulatory authorities (available under the company’s SEDAR+ profile at www.sedarplus.com) and with the SEC, as part of Algoma’s Annual Report on Form 40-F (available at www.sec.gov), as well as in Algoma’s current reports with the Canadian securities regulatory authorities and SEC. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Algoma assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.
Non-GAAP Financial Measures
To supplement our financial statements, which are prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IASB”) (“IFRS Accounting Standards”), we use certain non-GAAP measures to evaluate the performance of Algoma. These terms do not have any standardized meaning prescribed within IFRS Accounting Standards and, therefore, may not be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS Accounting Standards measures by providing a further understanding of our financial performance from management’s perspective. Accordingly, they should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS Accounting Standards.
Adjusted EBITDA, as we define it, refers to net income (loss) before amortization of property, plant, equipment and amortization of intangible assets, finance costs, interest on pension and other post-employment benefit obligations, income taxes, foreign exchange loss (gain), finance income, carbon tax, changes in fair value of warrant, earnout and share-based compensation liabilities, share-based compensation related to the Company’s Omnibus Long Term Incentive Plan, certain inventory adjustments and legal settlement. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenue for the corresponding period. Adjusted EBITDA is not intended to represent cash flow from operations, as defined by IFRS Accounting Standards, and should not be considered as alternatives to net profit (loss) from operations, or any other measure of performance prescribed by IFRS Accounting Standards. Adjusted EBITDA, as we define and use it, may not be comparable to Adjusted EBITDA as defined and used by other companies. We consider Adjusted EBITDA to be a meaningful measure to assess our operating performance in addition to IFRS Accounting Standards. It is included because we believe it can be useful in measuring our operating performance and our ability to expand our business and provide management and investors with additional information for comparison of our operating results across different time periods and to the operating results of other companies. Adjusted EBITDA is also used by analysts and our lenders as a measure of our financial performance. In addition, we consider Adjusted EBITDA margin to be a useful measure of our operating performance and profitability across different time periods that enhance the comparability of our results. However, these measures have limitations as analytical tools and should not be considered in isolation from, or as alternatives to, net income, cash flow from operations or other data prepared in accordance with IFRS Accounting Standards. Because of these limitations, such measures should not be considered as measures of discretionary cash available to invest in business growth or to reduce indebtedness. We compensate for these limitations by relying primarily on our IFRS Accounting Standards results using such measures only as supplements to such results. See the financial tables below for a reconciliation of net income (loss) to Adjusted EBITDA.
About Algoma Steel Group Inc.
Based in Sault Ste. Marie, Ontario, Canada, Algoma is a fully integrated producer of hot and cold rolled steel products including sheet and plate. Driven by a purpose to build better lives and a greener future, Algoma is positioned to deliver responsive, customer-driven product solutions to applications in the automotive, construction, energy, defense, and manufacturing sectors. Algoma is a key supplier of steel products to customers in North America and is the only producer of discrete plate products in Canada. Its state-of-the-art Direct Strip Production Complex (“DSPC”) is one of the lowest-cost producers of hot rolled sheet steel (HRC) in North America.
Algoma is on a transformation journey, modernizing its plate mill and adopting electric arc technology that builds on the strong principles of recycling and environmental stewardship to significantly lower carbon emissions. Today Algoma is investing in its people and processes, working safely, as a team to become one of North America's leading producers of green steel.
As a founding industry in their community, Algoma is drawing on the best of its rich steelmaking tradition to deliver greater value, offering North America the comfort of a secure steel supply and a sustainable future as your partner in steel.
| Algoma Steel Group Inc. | |||||||
| Consolidated Statements of Financial Position | |||||||
| As at, | December 31, 2024 | March 31, 2024 | |||||
| expressed in millions of Canadian dollars | |||||||
| Assets | |||||||
| Current | |||||||
| Cash | $266.9 | ||||||
| Restricted cash | 0.1 | 3.9 | |||||
| Taxes receivable | 84.3 | 20.0 | |||||
| Accounts receivable, net | 227.6 | 246.7 | |||||
| Inventories, net | 879.2 | 807.8 | |||||
| Prepaid expenses and deposits | 42.8 | 80.5 | |||||
| Other assets | 5.5 | 5.7 | |||||
| Total current assets | $1,506.4 | ||||||
| Non-current | |||||||
| Property, plant and equipment, net | $1,662.7 | ||||||
| Intangible assets, net | 0.5 | 0.7 | |||||
| Other assets | 16.6 | 7.6 | |||||
| Total non-current assets | $1,679.8 | ||||||
| Total assets | $3,186.2 | ||||||
| Liabilities and Shareholders' Equity | |||||||
| Current | |||||||
| Bank indebtedness | $0.4 | ||||||
| Accounts payable and accrued liabilities | 319.1 | 286.8 | |||||
| Taxes payable and accrued taxes | 41.6 | 30.1 | |||||
| Current portion of other long-term liabilities | 3.2 | 1.4 | |||||
| Current portion of governmental loans | 25.0 | 16.2 | |||||
| Current portion of environmental liabilities | 4.2 | 3.1 | |||||
| Warrant liability | 52.2 | 44.9 | |||||
| Earnout liability | 10.1 | 13.8 | |||||
| Share-based payment compensation liability | 34.5 | 31.9 | |||||
| Total current liabilities | $490.3 | ||||||
| Non-current | |||||||
| Senior secured lien notes | $498.4 | ||||||
| Long-term governmental loans | 133.6 | 127.4 | |||||
| Accrued pension liability | 178.3 | 238.0 | |||||
| Accrued other post-employment benefit obligation | 206.2 | 229.5 | |||||
| Other long-term liabilities | 26.7 | 17.0 | |||||
| Environmental liabilities | 33.3 | 35.2 | |||||
| Deferred income tax liabilities | 110.9 | 98.0 | |||||
| Total non-current liabilities | $1,187.4 | ||||||
| Total liabilities | $1,677.7 | ||||||
| Shareholders' equity | |||||||
| Capital stock | $974.8 | ||||||
| Accumulated other comprehensive income | 439.6 | 267.1 | |||||
| Retained earnings | 102.0 | 288.4 | |||||
| Contributed deficit | (7.9 | ) | (17.0 | ) | |||
| Total shareholders' equity | $1,508.5 | ||||||
| Total liabilities and shareholders' equity | $3,186.2 | ||||||
| Algoma Steel Group Inc. | ||||||||||||||
| Consolidated Statements of Net (Loss) Income | ||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | Year ended March 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2024 | |||||||||||
| expressed in millions of Canadian dollars, except for per share amounts | ||||||||||||||
| Revenue | $590.3 | $1,841.1 | ||||||||||||
| Operating expenses | ||||||||||||||
| Cost of sales | $677.4 | $1,958.4 | ||||||||||||
| Administrative and selling expenses | 37.7 | 28.5 | 103.6 | 115.0 | ||||||||||
| (Loss) income from operations | ($124.8 | ) | ( | ) | ($220.9 | ) | ||||||||
| Other (income) and expenses | ||||||||||||||
| Finance income | ($5.4 | ) | ( | ) | ($17.8 | ) | ( | ) | ||||||
| Finance costs | 19.9 | 5.4 | 55.5 | 25.6 | ||||||||||
| Interest on pension and other post-employment benefit obligations | 5.4 | 4.8 | 16.1 | 19.3 | ||||||||||
| Foreign exchange loss (gain) | (43.3 | ) | 14.7 | (40.5 | ) | (1.7 | ) | |||||||
| Other income | (0.6 | ) | - | (32.7 | ) | - | ||||||||
| Change in fair value of warrant liability | (7.7 | ) | 20.4 | 4.0 | (12.1 | ) | ||||||||
| Change in fair value of earnout liability | (0.5 | ) | 6.2 | 2.4 | 0.1 | |||||||||
| Change in fair value of share-based compensation liability | (1.4 | ) | 11.3 | 5.3 | 1.2 | |||||||||
| ($33.6 | ) | ($7.7 | ) | |||||||||||
| (Loss) income before income taxes | ($91.2 | ) | ( | ) | ($213.2 | ) | ||||||||
| Income tax (recovery) expense | (24.7 | ) | (12.5 | ) | (46.2 | ) | 39.7 | |||||||
| Net (loss) income | ($66.5 | ) | ( | ) | ($167.0 | ) | ||||||||
| Net (loss) income per common share | ||||||||||||||
| Basic | ($0.61 | ) | ( | ) | ($1.54 | ) | ||||||||
| Diluted | ($0.61 | ) | ( | ) | ($1.54 | ) | ||||||||
| Algoma Steel Group Inc. | ||||||||||||||
| Consolidated Statements of Cash Flows | ||||||||||||||
| Three months ended December 31, | Nine months ended December 31, | Year ended March 31, | ||||||||||||
| 2024 | 2023 | 2024 | 2024 | |||||||||||
| expressed in millions of Canadian dollars | ||||||||||||||
| Operating activities | ||||||||||||||
| Net (loss) income | ($66.5 | ) | ( | ) | ($167.0 | ) | ||||||||
| Items not affecting cash: | ||||||||||||||
| Depreciation of property, plant and equipment and intangible assets | 33.9 | 31.6 | 103.4 | 115.0 | ||||||||||
| Deferred income tax expense | 3.1 | 17.3 | 6.5 | 1.2 | ||||||||||
| Pension funding in excess of expense | (3.5 | ) | (0.5 | ) | (8.2 | ) | (0.8 | ) | ||||||
| Post-employment benefit funding in excess of expense | (2.0 | ) | (2.0 | ) | (6.0 | ) | (7.5 | ) | ||||||
| Unrealized foreign exchange (gain) loss on: | ||||||||||||||
| accrued pension liability | (13.5 | ) | 5.0 | (12.9 | ) | (0.9 | ) | |||||||
| post-employment benefit obligations | (14.8 | ) | 5.1 | (14.0 | ) | (0.7 | ) | |||||||
| Finance costs | 19.9 | 5.5 | 55.5 | 25.6 | ||||||||||
| Loss on disposal of property, plant and equipment | 0.6 | - | 1.7 | 0.5 | ||||||||||
| Interest on pension and other post-employment benefit obligations | 5.4 | 4.8 | 16.1 | 19.3 | ||||||||||
| Other income | (0.6 | ) | - | (32.7 | ) | - | ||||||||
| Accretion of governmental loans and environmental liabilities | 2.3 | 4.0 | 12.3 | 19.2 | ||||||||||
| Unrealized foreign exchange (gain) loss on government loan facilities | (10.1 | ) | 3.2 | (9.3 | ) | (0.7 | ) | |||||||
| (Decrease) increase in fair value of warrant liability | (7.7 | ) | 20.4 | 4.0 | (12.1 | ) | ||||||||
| (Decrease) increase in fair value of earnout liability | (0.5 | ) | 6.2 | 2.4 | 0.1 | |||||||||
| (Decrease) increase in fair value of share-based compensation liability | (1.4 | ) | 11.3 | 5.3 | 1.2 | |||||||||
| Other | 4.8 | 2.0 | 14.7 | 4.7 | ||||||||||
| ($50.6 | ) | ($28.2 | ) | |||||||||||
| Net change in non-cash operating working capital | (22.0 | ) | (72.5 | ) | (5.9 | ) | 33.1 | |||||||
| Share-based payment compensation and earnout units settled | (2.1 | ) | (2.5 | ) | (2.1 | ) | (2.5 | ) | ||||||
| Environmental liabilities paid | (2.2 | ) | (1.5 | ) | (2.7 | ) | (5.0 | ) | ||||||
| Cash (used in) generated by operating activities | ($76.9 | ) | ( | ) | ($38.9 | ) | ||||||||
| Investing activities | ||||||||||||||
| Acquisition of property, plant and equipment | ($112.4 | ) | ( | ) | ($300.1 | ) | ( | ) | ||||||
| Insurance proceeds for property damage | - | - | 27.9 | - | ||||||||||
| Cash used in investing activities | ($112.4 | ) | ( | ) | ($272.2 | ) | ( | ) | ||||||
| Financing activities | ||||||||||||||
| Bank indebtedness repaid, net | $0.1 | $0.1 | ( | ) | ||||||||||
| Transaction costs on bank indebtedness | - | - | - | (1.7 | ) | |||||||||
| Restricted cash | - | - | 3.8 | - | ||||||||||
| Senior secured lien notes issued, net of underwriter fees | - | - | 472.6 | - | ||||||||||
| Transaction costs on senior secured lien notes | - | - | (4.1 | ) | - | |||||||||
| Governmental loans received | 16.2 | 17.0 | 43.6 | 74.8 | ||||||||||
| Repayment of governmental loans | (3.7 | ) | (2.5 | ) | (8.7 | ) | (10.0 | ) | ||||||
| Interest paid | (23.6 | ) | - | (23.7 | ) | (0.3 | ) | |||||||
| Dividends paid | (7.3 | ) | (6.9 | ) | (21.5 | ) | (27.9 | ) | ||||||
| Other | 1.3 | 11.9 | 1.7 | 11.2 | ||||||||||
| Cash (used in) generated by financing activities | ($17.0 | ) | $463.8 | |||||||||||
| Effect of exchange rate changes on cash | $21.2 | $16.3 | ||||||||||||
| Cash | ||||||||||||||
| (Decrease) increase in cash | (185.1 | ) | (118.9 | ) | 169.0 | (149.5 | ) | |||||||
| Opening balance | 452.0 | 213.6 | 97.9 | 247.4 | ||||||||||
| Ending balance | $266.9 | $266.9 | ||||||||||||
| Algoma Steel Group Inc. | |||||||||
| Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||||
| Three months ended December 31, | Nine months ended December 31, | Year ended March 31, | |||||||
| millions of dollars | 2024 | 2023 | 2024 | 2024 | |||||
| Net (loss) income | ($66.5 | ) | ( | ) | ($167.0 | ) | |||
| Depreciation of property, plant and equipment and amortization of intangible assets | 33.9 | 31.6 | 103.4 | 115.0 | |||||
| Finance costs | 19.9 | 5.4 | 55.5 | 25.6 | |||||
| Interest on pension and other post-employment benefit obligations | 5.4 | 4.8 | 16.1 | 19.3 | |||||
| Income taxes | (24.7 | ) | (12.5 | ) | (46.2 | ) | 39.7 | ||
| Foreign exchange (gain) loss | (43.3 | ) | 14.7 | (40.5 | ) | (1.7 | ) | ||
| Finance income | (5.4 | ) | (2.4 | ) | (17.8 | ) | (10.0 | ) | |
| Inventory adjustments(depreciation on property, plant and equipment in inventory) | 4.3 | (1.3 | ) | 9.0 | (0.5 | ) | |||
| Carbon tax | 9.0 | 3.5 | 31.0 | 24.6 | |||||
| Increase (decrease) in fair value of warrant liability | (7.7 | ) | 20.4 | 4.0 | (12.1 | ) | |||
| Increase (decrease) in fair value of earnout liability | (0.5 | ) | 6.2 | 2.4 | 0.1 | ||||
| Increase (decrease) in fair value of share-based payment compensation liability | (1.4 | ) | 11.3 | 5.3 | 1.2 | ||||
| Increase in fair value of derivative asset | (0.6 | ) | - | (0.6 | ) | - | |||
| Share-based compensation | 3.6 | 2.1 | 12.6 | 6.3 | |||||
| Legal settlement | 13.7 | - | 13.7 | - | |||||
| Adjusted EBITDA (i) | ($60.3 | ) | ( | ) | ($19.1 | ) | |||
| Net (loss) income Margin | ( | ) | ( | ) | ( | ) | |||
| Net (loss) income / ton | ($121.2 | ) | ( | ) | ($106.2 | ) | |||
| Adjusted EBITDA Margin (ii) | ( | ) | ( | ) | ( | ) | |||
| Adjusted EBITDA / ton | ($109.9 | ) | ( | ) | ($12.1 | ) | |||
| (i) See "Non-GAAP Financial Measures" in this Press Release for information regarding the limitations of using Adjusted EBITDA. | |||||||||
| (ii) Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of revenue. | |||||||||
For more information, please contact:
Michael Moraca
Vice President – Corporate Development & Treasurer
Algoma Steel Group Inc.
Phone: 705.945.3300
E-mail: IR@algoma.com
FAQ
What are the key financial results for Algoma Steel (ASTL) in Q4 2024?
When will Algoma Steel's EAF project begin production and what is the total investment?
How will the new U.S. tariffs affect Algoma Steel (ASTL)?
What environmental benefits will ASTL's EAF project deliver?
What is ASTL's current dividend policy?
