Industry Press Releases

Commercial Metals Company Reports Second Quarter Fiscal 2017 Earnings Per Share Of $0.26

Friday, Mar 24, 2017
Pressreleases

Commercial Metals Company (CMC) today announced financial results for its second quarter ended February 28, 2017. Net earnings for the second quarter of fiscal 2017 were $30.3 million ($0.26 per diluted share) on net sales of $1.1 billion. This compares to net earnings of $10.5 million ($0.09 per diluted share) on net sales of $1.0 billion for the second quarter of fiscal 2016.  Results for the second quarter of fiscal 2016 included an after-tax impact of debt extinguishment costs of $7.4 million ($0.06 per diluted share) associated with the tender offers for senior notes completed on February 17, 2016.  Earnings from continuing operations were $29.6 million for the second quarter of fiscal 2017, compared with $10.8 million for the same period of the prior year.

Adjusted operating profit from continuing operations was $52.3 million for the second quarter of fiscal 2017, compared with adjusted operating profit from continuing operations of $30.0 million for the second quarter of fiscal 2016. Adjusted EBITDA from continuing operations was $82.7 million for the second quarter of fiscal 2017, compared with adjusted EBITDA from continuing operations of $61.1 million for the second quarter of fiscal 2016.

The Company's liquidity position at February 28, 2017 remained strong with cash and cash equivalents of $395.5 million and availability under the Company's credit and accounts receivables sales facilities of approximately $575 million. The Company regularly evaluates the use of its cash in efforts to maximize total shareholder return, including debt repayment, capital deployment, share repurchases and dividends.

Joe Alvarado, Chairman of the Board and CEO, commented, "After a slow start in our first fiscal quarter, customers re-entered the market during the most recent quarter with a renewed outlook and optimism for growth.  This, combined with mild winter conditions in the United States along with rising selling prices, resulted in very strong results for our second quarter which is normally a seasonally slower period. The value of our vertical integration was evident during the quarter as the impact of margin compression in our fabrication operations was offset by sharply rising scrap prices contributing to margin expansion in our recycling business."

Alvarado continued, "Our recent acquisitions highlight our commitment to grow our portfolio and extend the vertical integration and geographic reach of our business. We welcome the employees from Continental Concrete Structures, Inc., a supplier of post-tensioning cable and related products, the steel rebar fabrication business of Associated Steel Workers, Limited (ASW) in Hawaii, and the seven recycling facilities in the South East, to CMC."

On March 22, 2017, the board of directors of CMC declared a quarterly dividend of $0.12 per share for shareholders of record on April 5, 2017.  The dividend will be paid on April 20, 2017.

Business Segments-Fiscal Second Quarter 2017 Review
Our Americas Recycling segment recorded adjusted operating profit of $7.8 million for the second quarter of fiscal 2017 compared to an adjusted operating loss of $7.6 million for the second quarter of fiscal 2016. The improvement in adjusted operating profit compared to the same period in fiscal 2016 was primarily the result of strong ferrous scrap demand due to increased industry capacity utilization, sharply rising prices in both ferrous and nonferrous materials, as well as ongoing cost reduction measures.

Our Americas Mills segment recorded adjusted operating profit of $51.3 million for the second quarter of fiscal 2017 compared to adjusted operating profit of $50.7 million for the corresponding period in fiscal 2016. Profitability in this segment remained relatively flat in comparison to the second quarter of fiscal 2016 due to lower metal margins offset by increased shipments.  Some of the increase in shipments was the result of customers buying ahead of announced price increases, however, low service center inventory levels and strength in construction activity in our markets also contributed to the demand. We believe margins will continue to be pressured by imports and result in selling price increases lagging ferrous scrap cost increases in the near term.

Our Americas Fabrication segment recorded adjusted operating profit of $0.5 million for the second quarter of fiscal 2017 compared to adjusted operating profit of $14.8 million for the second quarter of fiscal 2016. The decline in adjusted operating profit for the second quarter of fiscal 2017 continued the effect, seen over the past few quarters, of aggressive competition resulting in lower prices for projects booked running through our fabrication backlog.

Despite the normal winter conditions, our International Mill segment in Poland recorded adjusted operating profit of $9.4 million for the second quarter of fiscal 2017 compared to adjusted operating profit of $2.0 million for the corresponding period in fiscal 2016.  Product mix more heavily weighted to higher margin merchant products, coupled with demand from the construction sector continuing to remain robust, resulted in the third successive quarter of strong results in this segment.

Our International Marketing and Distribution segment recorded adjusted operating profit of $6.1 million for the second quarter of fiscal 2017 compared to an adjusted operating loss of $2.3 million for the same period in the prior fiscal year. The increase in adjusted operating profit was primarily due to improved margins across the steel and raw material trading businesses recorded during a period of rising commodity pricing and some rejuvenated demand in the U.S. oil and gas drilling activities.

Year to Date Results
Net earnings for the six months ended February 28, 2017 were $36.6 million ($0.31 per diluted share) on net sales of $2.2 billion, compared with net earnings of $35.6 million ($0.30 per diluted share) on net sales of $2.2 billion for the six months ended February 29, 2016. For the six months ended February 28, 2017, earnings from continuing operations were $36.8 million compared with $36.5 million for the same period of the prior year.  For the six months ended February 28, 2017, adjusted operating profit from continuing operations was $75.6 million, compared with $86.0 million for the six months ended February 29, 2016. Adjusted EBITDA from continuing operations was $136.5 million for the six months ended February 28, 2017, compared with $148.8 million for the six months ended February 29, 2016.

Outlook
Alvarado concluded, "We anticipate demand will remain robust, supported by strong levels of bidding in our fabrication business, growth oriented leading indicators such as the Architectural Billings Index and overall consumer confidence across all of our product lines.  We anticipate that our shipment levels will continue to grow in our third quarter as we enter the traditionally strong construction season in both the U.S. and Polish markets. However, we anticipate further pressure on our margins as imports continue to make it difficult to increase selling prices for our products in line with scrap cost increases."

"In spite of a mixed reaction to the preliminary countervailing and anti-dumping duties recently announced by the U.S. Department of Commerce, we are pleased that there has finally been some recognition that producers in Japan, Taiwan and Turkey are trading rebar products unfairly.  The final results for these duties will be released in the coming months, and we will continue to work for the enforcement of our trade laws."

"We are also hopeful that the policies of the new administration in the U.S. will support economic growth through tax reform, a reduced regulatory environment, the introduction of an infrastructure regeneration program and more rigorous enforcement of trade actions.  We believe we are well-positioned to capitalize on the benefits from these initiatives, however, it is unknown when and how these policies will be implemented."

Conference Call
CMC invites you to listen to a live broadcast of its second quarter of fiscal 2017 conference call today, Thursday, March 23, 2017, at 11:00 a.m. ET.  Joe Alvarado, Chairman of the Board and CEO, Barbara Smith, President and COO, and Mary Lindsey, Vice President and CFO, will host the call.  The call is accessible via our website at www.cmc.com.  In the event you are unable to listen to the live broadcast, the call will be archived and available for replay on our website on the next business day.  Financial and statistical information presented in the broadcast are located on CMC's website under "Investors."

About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.

Forward-Looking Statements
This news release contains forward-looking statements regarding CMC's expectations relating to demand, shipment levels, economic conditions, changes in political and regulatory conditions, including duties announced by the U.S. Department of Commerce and the effects thereof, the effects of global steel overcapacity and international trade, anticipated finished goods pricing and customer growth, and CMC's margins.  These forward-looking statements generally can be identified by phrases such as we, CMC or its management, "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears," "potential," "outlook," or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially.  Except as required by law, CMC undertakes no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or otherwise.

Factors that could cause actual results to differ materially from CMC's expectations include the following: overall global economic conditions, including the ongoing recovery from the last recession, continued sovereign debt problems in the Euro-zone and construction activity or lack thereof, and their impact in a highly cyclical industry; rapid and significant changes in the price of metals, potentially impairing our inventory values due to declines in commodity prices; excess capacity in our industry, particularly in China, and product availability from competing steel mills and other steel suppliers including import quantities and pricing; compliance with and changes in environmental laws and regulations, including increased regulation associated with climate change and greenhouse gas emissions; potential limitations in our or our customers' ability to access credit and non-compliance by our customers with our contracts; financial covenants and restrictions on the operation of our business contained in agreements governing our debt; currency fluctuations; global factors, including political uncertainties and military conflicts; availability of electricity and natural gas for mill operations; information technology interruptions and breaches in data security; ability to hire and retain key executives and other employees; our ability to make necessary capital expenditures; availability and pricing of raw materials over which we exert little influence, including scrap metal, energy, insurance and supply prices; unexpected equipment failures; competition from other materials or from competitors that have a lower cost structure or access to greater financial resources; losses or limited potential gains due to hedging transactions; litigation claims and settlements, court decisions, regulatory rulings and legal compliance risks; risk of injury or death to employees, customers or other visitors to our operations; and increased costs related to health care reform legislation.

COMMERCIAL METALS COMPANY

OPERATING STATISTICS (UNAUDITED)

 
   

Three Months Ended

 

Six Months Ended

 

Three Months Ended

(short tons in thousands)

 

2/28/2017

 

2/29/2016

 

2/28/2017

 

2/29/2016

 

11/30/2016

 

8/31/2016

 

5/31/2016

Americas Recycling

                           

    Ferrous tons shipped

 

421

   

379

   

826

   

768

   

405

   

423

   

423

 

    Nonferrous tons shipped

 

53

   

48

   

102

   

100

   

49

   

52

   

49

 

Americas Recycling tons shipped

 

474

   

427

   

928

   

868

   

454

   

475

   

472

 
                             

Americas Steel Mills

                           

    Rebar shipments

 

406

   

364

   

810

   

758

   

404

   

411

   

462

 

    Merchant and other shipments

 

252

   

244

   

483

   

490

   

231

   

247

   

262

 

Americas Steel Mills tons shipped

 

658

   

608

   

1,293

   

1,248

   

635

   

658

   

724

 
                             

    Average selling price (total sales)

 

$

524

   

$

510

   

$

511

   

$

533

   

$

499

   

$

531

   

$

501

 

    Average cost ferrous scrap utilized

 

245

   

179

   

223

   

188

   

201

   

234

   

213

 

Americas Steel Mills metal margin

 

$

279

   

$

331

   

$

288

   

$

345

   

$

298

   

$

297

   

$

288

 
                             

International Mill

                           

    Tons shipped

 

313

   

282

   

629

   

560

   

316

   

341

   

353

 
                             

    Average selling price (total sales)

 

$

402

   

$

363

   

$

399

   

$

385

   

$

397

   

$

409

   

$

378

 

    Average cost ferrous scrap utilized

 

229

   

178

   

215

   

192

   

202

   

211

   

187

 

International Mill metal margin

 

$

173

   

$

185

   

$

184

   

$

193

   

$

195

   

$

198

   

$

191

 
                             

Americas Fabrication

                           

    Rebar shipments

 

226

   

225

   

474

   

474

   

248

   

284

   

270

 

    Structural and post shipments

 

27

   

29

   

52

   

57

   

25

   

30

   

40

 

Americas Fabrication tons shipped

 

253

   

254

   

526

   

531

   

273

   

314

   

310

 
                             

Americas Fabrication average selling price (excluding stock and buyout sales)

 

$

756

   

$

842

   

$

769

   

$

866

   

$

782

   

$

805

   

$

827

 

 

COMMERCIAL METALS COMPANY

BUSINESS SEGMENTS (UNAUDITED)

 

(in thousands)

 

Three Months Ended

 

Six Months Ended

 

Three Months Ended

Net sales

 

2/28/2017

 

2/29/2016

 

2/28/2017

 

2/29/2016

 

11/30/2016

 

8/31/2016

 

5/31/2016

Americas Recycling

 

$

223,328

   

$

148,346

   

$

400,036

   

$

327,553

   

$

176,708

   

$

195,724

   

$

182,477

 

Americas Mills

 

376,593

   

336,429

   

723,758

   

720,961

   

347,165

   

381,406

   

396,481

 

Americas Fabrication

 

303,826

   

336,144

   

642,226

   

718,458

   

338,400

   

385,917

   

385,080

 

International Mill

 

134,305

   

107,458

   

268,706

   

227,906

   

134,401

   

147,842

   

141,438

 

International Marketing and Distribution

 

302,295

   

276,876

   

550,455

   

559,913

   

248,160

   

310,079

   

319,604

 

Corporate

 

3,842

   

(2,867)

   

5,592

   

(476)

   

1,750

   

2,973

   

4,585

 

Eliminations

 

(194,568)

   

(182,689)

   

(366,089)

   

(379,759)

   

(171,521)

   

(215,361)

   

(202,275)

 

Total net sales

 

$

1,149,621

   

$

1,019,697

   

$

2,224,684

   

$

2,174,556

   

$

1,075,063

   

$

1,208,580

   

$

1,227,390

 
                             

Adjusted operating profit (loss) from continuing operations

                           

Americas Recycling

 

$

7,766

   

$

(7,645)

   

$

2,668

   

$

(14,193)

   

$

(5,098)

   

$

(45,113)

   

$

(1,978)

 

Americas Mills

 

51,319

   

50,699

   

88,268

   

109,763

   

36,949

   

45,012

   

54,976

 

Americas Fabrication

 

506

   

14,825

   

7,217

   

36,170

   

6,711

   

9,638

   

22,794

 

International Mill

 

9,430

   

1,951

   

19,403

   

4,722

   

9,973

   

18,703

   

5,467

 

International Marketing and Distribution

 

6,143

   

(2,293)

   

5,177

   

(4,462)

   

(966)

   

(3,517)

   

892

 

Corporate

 

(22,317)

   

(28,801)

   

(46,330)

   

(46,873)

   

(24,013)

   

(25,670)

   

(22,542)

 

Eliminations

 

(576)

   

1,232

   

(780)

   

902

   

(204)

   

3,086

   

1,331

 

Adjusted operating profit from continuing operations

 

$

52,271

   

$

29,968

   

$

75,623

   

$

86,029

   

$

23,352

   

$

2,139

   

$

60,940

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED)

 
   

Three Months Ended

 

Six Months Ended

(in thousands, except share data)

 

February 28,
 2017

 

February 29,
 2016

 

February 28,
 2017

 

February 29,
 2016

Net sales

 

$

1,149,621

   

$

1,019,697

   

$

2,224,684

   

$

2,174,556

 

Costs and expenses:

               

Cost of goods sold

 

990,431

   

884,876

   

1,933,502

   

1,882,118

 

Selling, general and administrative expenses

 

107,119

   

93,918

   

215,986

   

195,826

 

Interest expense

 

12,442

   

16,625

   

25,740

   

34,929

 

Loss on debt extinguishment

 

   

11,365

   

   

11,365

 
   

1,109,992

   

1,006,784

   

2,175,228

   

2,124,238

 
                 

Earnings from continuing operations before income taxes

 

39,629

   

12,913

   

49,456

   

50,318

 

Income taxes

 

9,990

   

2,064

   

12,643

   

13,836

 

Earnings from continuing operations

 

29,639

   

10,849

   

36,813

   

36,482

 
                 

Earnings (loss) from discontinued operations before income taxes (benefit)

 

726

   

(446)

   

(191)

   

(1,018)

 

Income taxes (benefit)

 

33

   

(99)

   

15

   

(101)

 

Earnings (loss) from discontinued operations

 

693

   

(347)

   

(206)

   

(917)

 
                 

Net earnings

 

30,332

   

10,502

   

36,607

   

35,565

 

Less net earnings attributable to noncontrolling interests

 

   

   

   

 

Net earnings attributable to CMC

 

30,332

   

10,502

   

36,607

   

35,565

 
                 

Basic earnings (loss) per share attributable to CMC:

               

Earnings from continuing operations

 

$

0.25

   

$

0.09

   

$

0.32

   

$

0.32

 

Earnings (loss) from discontinued operations

 

0.01

   

   

   

(0.01)

 

Net earnings

 

$

0.26

   

$

0.09

   

$

0.32

   

$

0.31

 
                 

Diluted earnings (loss) per share attributable to CMC:

               

Earnings from continuing operations

 

$

0.25

   

$

0.09

   

$

0.31

   

$

0.31

 

Earnings (loss) from discontinued operations

 

0.01

   

   

   

(0.01)

 

Net earnings

 

$

0.26

   

$

0.09

   

$

0.31

   

$

0.30

 
                 

Cash dividends per share

 

$

0.12

   

$

0.12

   

$

0.24

   

$

0.24

 

Average basic shares outstanding

 

115,736,369

   

115,429,550

   

115,415,662

   

115,725,896

 

Average diluted shares outstanding

 

117,120,208

   

116,507,591

   

117,007,958

   

117,002,822

 

COMMERCIAL METALS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

 

(in thousands)

 

February 28,
 2017

 

August 31,
 2016

Assets

       

Current assets:

       

Cash and cash equivalents

 

$

395,546

   

$

517,544

 

Accounts receivable, net

 

774,286

   

765,784

 

Inventories, net

 

720,786

   

652,754

 

Other current assets

 

96,422

   

112,043

 

Total current assets

 

1,987,040

   

2,048,125

 

Net property, plant and equipment

 

940,344

   

895,049

 

Goodwill

 

66,530

   

66,373

 

Other assets

 

137,919

   

121,322

 

Total assets

 

$

3,131,833

   

$

3,130,869

 

Liabilities and stockholders' equity

       

Current liabilities:

       

Accounts payable-trade

 

$

307,488

   

$

243,532

 

Accounts payable-documentary letters of credit

 

   

5

 

Accrued expenses and other payables

 

220,433

   

264,112

 

Current maturities of long-term debt

 

312,200

   

313,469

 

Total current liabilities

 

840,121

   

821,118

 

Deferred income taxes

 

55,625

   

63,021

 

Other long-term liabilities

 

121,930

   

121,351

 

Long-term debt

 

752,137

   

757,948

 

Total liabilities

 

1,769,813

   

1,763,438

 

Stockholders' equity attributable to CMC

 

1,361,848

   

1,367,272

 

Stockholders' equity attributable to noncontrolling interests

 

172

   

159

 

Total equity

 

1,362,020

   

1,367,431

 

Total liabilities and stockholders' equity

 

$

3,131,833

   

$

3,130,869

 

 

 

COMMERCIAL METALS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

   

Six Months Ended

(in thousands)

 

February 28, 2017

 

February 29, 2016

Cash flows from (used by) operating activities:

       

Net earnings

 

$

36,607

   

$

35,565

 

Adjustments to reconcile net earnings to cash flows from (used by) operating activities:

       

Depreciation and amortization

 

60,789

   

63,541

 

Stock-based compensation

 

16,156

   

13,106

 

Deferred income taxes

 

(9,380)

   

(4,614)

 

Amortization of interest rate swaps termination gain

 

(3,798)

   

(3,798)

 

Provision for losses on receivables, net

 

1,381

   

2,740

 

Write-down of inventories

 

1,205

   

7,949

 

Asset impairment

 

553

   

 

Net gain on sales of assets and other

 

(195)

   

(2,767)

 

Loss on debt extinguishment

 

   

11,365

 

Tax benefit from stock plans

 

   

(55)

 

Changes in operating assets and liabilities:

       

Accounts receivable

 

2,162

   

190,622

 

Proceeds (payments) on sales of accounts receivable programs, net

 

(5,102)

   

11,504

 

Inventories

 

(68,456)

   

111,544

 

Accounts payable, accrued expenses and other payables

 

9,374

   

(115,002)

 

Changes in other operating assets and liabilities

 

(29,313)

   

11,110

 

Net cash flows from operating activities

 

11,983

   

332,810

 

Cash flows from (used by) investing activities:

       

Capital expenditures

 

(90,808)

   

(62,437)

 

Acquisitions, net of cash acquired

 

(25,366)

   

 

Decrease (increase) in restricted cash

 

21,033

   

(49,145)

 

Proceeds from the sale of property, plant and equipment and other

 

700

   

3,060

 

Proceeds from the sale of subsidiaries

 

524

   

 

Net cash flows used by investing activities

 

(93,917)

   

(108,522)

 

Cash flows from (used by) financing activities:

       

Cash dividends

 

(27,726)

   

(27,839)

 

Repayments on long-term debt

 

(6,148)

   

(205,816)

 

Stock issued under incentive and purchase plans, net of forfeitures

 

(5,408)

   

(5,671)

 

Contribution from noncontrolling interests

 

13

   

29

 

Increase (decrease) in documentary letters of credit, net

 

(5)

   

(25,815)

 

Short-term borrowings, net change

 

   

(20,090)

 

Treasury stock acquired

 

   

(30,595)

 

Debt extinguishment costs

 

   

(11,013)

 

Tax benefit from stock plans

 

   

55

 

Decrease in restricted cash

 

   

1

 

Net cash flows used by financing activities

 

(39,274)

   

(326,754)

 

Effect of exchange rate changes on cash

 

(790)

   

(1,179)

 

Increase (decrease) in cash and cash equivalents

 

(121,998)

   

(103,645)

 

Cash and cash equivalents at beginning of year

 

517,544

   

485,323

 

Cash and cash equivalents at end of period

 

$

395,546

   

$

381,678

 

COMMERCIAL METALS COMPANY
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

This press release contains financial measures not derived in accordance with generally accepted accounting principles ("GAAP"). Reconciliations to the most comparable GAAP measures are provided below.

Adjusted Operating Profit from Continuing Operations is a non-GAAP financial measure. Adjusted operating profit from continuing operations is the sum of our earnings from continuing operations before income taxes, interest expense and discounts on sales of accounts receivable. Adjusted operating profit from continuing operations should not be considered as an alternative to earnings from continuing operations or net earnings, as determined by GAAP. Management uses adjusted operating profit from continuing operations to evaluate the financial performance of CMC. For added flexibility, we may sell certain trade accounts receivable both in the U.S. and internationally. We consider sales of accounts receivable as an alternative source of liquidity to finance our operations, and we believe that removing these costs provides a clearer perspective of CMC's operating performance. Adjusted operating profit from continuing operations may be inconsistent with similar measures presented by other companies.

Three Months Ended

   

Six Months Ended

 

Three Months Ended

(in thousands)

 

2/28/2017

 

2/29/2016

 

2/28/2017

 

2/29/2016

 

11/30/2016

 

8/31/2016

 

5/31/2016

Earnings from continuing operations

 

$

29,639

   

$

10,849

   

$

36,813

   

$

36,482

   

$

7,174

   

$

950

   

$

35,111

 

Income taxes

 

9,990

   

2,064

   

12,643

   

13,836

   

2,653

   

(11,865)

   

10,676

 

Interest expense

 

12,442

   

16,625

   

25,740

   

34,929

   

13,298

   

12,565

   

14,737

 

Discounts on sales of accounts receivable

 

200

   

430

   

427

   

782

   

227

   

489

   

416

 

Adjusted operating profit from continuing operations

 

$

52,271

   

$

29,968

   

$

75,623

   

$

86,029

   

$

23,352

   

$

2,139

   

$

60,940

 

Adjusted EBITDA from Continuing Operations is a non-GAAP financial measure. Adjusted EBITDA from continuing operations is the sum of earnings from continuing operations before net earnings attributable to noncontrolling interests, interest expense and income taxes. It also excludes CMC's largest recurring non-cash charge, depreciation and amortization, as well as long-lived asset and goodwill impairment charges, which are also non-cash. There were no net earnings attributable to noncontrolling interests during the three and six months ended February 28, 2017 and February 29, 2016. Adjusted EBITDA from continuing operations should not be considered an alternative to earnings from continuing operations or net earnings, or as a better measure of liquidity than net cash flows from operating activities, as determined by GAAP. However, we believe that adjusted EBITDA from continuing operations provides relevant and useful information, which is often used by analysts, creditors and other interested parties as it allows: (i) comparison of our earnings to those of other competitors; (ii) a better understanding of our ongoing core performance; and (iii) assessing period-to-period performance trends. Additionally, adjusted EBITDA from continuing operations is the target benchmark for our annual and long-term cash incentive performance plans for management. Adjusted EBITDA from continuing operations may be inconsistent with similar measures presented by other companies.

Three Months Ended

   

Six Months Ended

 

Three Months Ended

(in thousands)

 

2/28/2017

 

2/29/2016

 

2/28/2017

 

2/29/2016

 

11/30/2016

 

8/31/2016

 

5/31/2016

Earnings from continuing operations

 

$

29,639

   

$

10,849

   

$

36,813

   

$

36,482

   

$

7,174

   

$

950

   

$

35,111

 

Interest expense

 

12,442

   

16,625

   

25,740

   

34,929

   

13,298

   

12,565

   

14,737

 

Income taxes

 

9,990

   

2,064

   

12,643

   

13,836

   

2,653

   

(11,865)

   

10,676

 

Depreciation and amortization

 

30,499

   

31,550

   

60,785

   

63,541

   

30,286

   

31,516

   

31,883

 

Impairment charges

 

91

   

   

479

   

   

388

   

39,952

   

76

 

Adjusted EBITDA from continuing operations

 

$

82,661

   

$

61,088

   

$

136,460

   

$

148,788

   

$

53,799

   

$

73,118

   

$

92,483

 

Source:finance.yahoo.com

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