Radius Recycling Inc (RDUS) 2023 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Schnitzer Steel's Third Quarter 2023 Earnings Release Conference Call Webcast. (Operator Instructions). Please note that today's conference may be recorded. I will now hand the conference over to your speaker host, Michael Bennett of Investor Relations. Please go ahead.

女士們、先生們，早安。感謝您的支持。歡迎收聽 Schnitzer Steel 2023 年第三季收益發佈電話會議網路直播。 （操作員指令）。請注意，今天的會議可能會被錄音。現在，我將會議移交給您的演講主持人、投資者關係部的 Michael Bennett。請繼續。

Thank you, Olivia, and good morning. I am Michael Bennett, the company's Vice President of Investor Relations. I am happy to welcome you to Schnitzer Steel's earnings presentation for the third quarter of fiscal 2023. In addition to today's audio comments, we have issued our press release and posted a set of slides, both of which you can access on our website at schnitzersteel.com. Before we start, let me call your attention to the detailed safe harbor statement on Slide 2, which is also included in our press release and in the company's Form 10-Q, which we filed later today.

謝謝你，奧利維亞，早安。我是麥可‧貝內特 (Michael Bennett)，公司投資人關係副總裁。我很高興歡迎您參加 Schnitzer Steel 2023 財年第三季的收益報告。除了今天的音訊評論外，我們還發布了新聞稿並發布了一組幻燈片，您可以在我們的網站 schnitzersteel.com 上訪問它們。在我們開始之前，請允許我提請大家注意幻燈片 2 上的詳細安全港聲明，該聲明也包含在我們的新聞稿和我們今天晚些時候提交的公司 10-Q 表中。

As we note on Slide 2, we may make forward-looking statements on our call today, such as our statements about our targets, volume growth and margins. Our actual results may differ materially from those projected in our forward-looking statements. Additional information concerning factors that could cause actual results to materially differ from those in the forward-looking statements is contained in Slide 2 as well as our press release of today and our Form 10-Q. Please note that we will be discussing some non-GAAP measures during our presentation today. We've included a reconciliation of those metrics to GAAP in the appendix to our slide presentation. Now let me turn the call over to Tamara Lundgren, our Chairman and Chief Executive Officer. She will host the call today with Stefano Gaggini, our Chief Financial Officer.

正如我們在第 2 張投影片中所提到的，我們可能會在今天的電話會議上做出前瞻性的陳述，例如關於我們的目標、銷售成長和利潤率的陳述。我們的實際結果可能與前瞻性陳述中的預測有重大差異。有關可能導致實際結果與前瞻性陳述有重大差異的因素的其他資訊包含在投影片 2 以及我們今天的新聞稿和我們的 10-Q 表中。請注意，我們將在今天的演示中討論一些非公認會計準則指標。我們在投影片簡報的附錄中附上了這些指標與 GAAP 的對照表。現在，讓我將電話轉給我們的董事長兼執行長 Tamara Lundgren。她今天將與我們的財務長 Stefano Gaggini 一起主持電話會議。

Thank you, Michael. Good morning, everyone, and welcome to our fiscal '23 third quarter earnings call. Before we begin, I'd like to take a moment to thank our team for the progress they've made in deploying our advanced metal recovery technology systems. This quarter, our results include a significant contribution from the systems commissioned to date,oth in terms of the increase in nonferrous volumes as well as in the production of higher-value recycled metals. Today on our call, I'll review our quarterly financial results. the trends affecting our business and progress on the strategic activities we have underway to address evolving industry dynamics and create long-term value through the cycle. Stefano will then provide more detail on our financial performance, our capital investments and our capital structure. I'll wrap up, and then we'll take your questions. So let's turn now to Slide 4 to get started.

謝謝你，麥可。大家早安，歡迎參加我們的 23 財年第三季財報電話會議。在我們開始之前，我想花點時間感謝我們的團隊在部署先進的金屬回收技術系統方面所取得的進展。本季度，我們的業績包括迄今已投入使用的系統的重大貢獻，無論是有色金屬產量的增加，還是高價值再生金屬的產量。今天在電話會議上，我將回顧我們的季度財務結果。影響我們業務的趨勢以及我們正在進行的策略活動的進展，以應對不斷變化的行業動態並在整個週期中創造長期價值。然後，Stefano 將提供有關我們的財務業績、資本投資和資本結構的更多詳細資訊。我的發言就到此結束，然後我們會回答你們的問題。現在讓我們翻到投影片 4 開始。

Earlier this morning, we announced our results for our fiscal '23 third quarter, which reflected adjusted EPS of $0.67 and adjusted EBITDA of $56 million. Our adjusted EBITDA per ferrous ton almost doubled versus the second quarter. We also continued our uninterrupted record of returning capital to our shareholders through the issuance of our 117th consecutive quarterly dividend.

今天早些時候，我們公佈了 23 財年第三季的業績，調整後每股收益為 0.67 美元，調整後息稅折舊攤銷前利潤為 5,600 萬美元。我們調整後的每噸鐵礦石 EBITDA 與第二季相比幾乎翻了一番。我們也連續第 117 個季度發放股息，繼續保持向股東返還資本的不間斷記錄。

Sales volumes in the quarter benefited from seasonality, customer inventory restocking and higher production in both recycling and steel manufacturing. Our sequential nonferrous and finished steel sales volumes were up 26% and 30%, respectively. Our ferrous sales volumes were down by 8% sequentially, primarily due to the timing of shipments that benefited the second quarter. Supply flows improved seasonally but remained tighter than a year ago. So let's turn now to Slide 5 for a review of market conditions.

本季的銷售量受惠於季節性、客戶庫存補充以及回收和鋼鐵製造產量的增加。我們的有色金屬和成品鋼銷售量分別較上季成長26％和30％。我們的黑色金屬銷售量較上季下降 8%，主要原因是第二季的出貨時間有利。供應流隨季節改善，但仍比一年前緊張。現在我們轉到投影片 5 回顧一下市場狀況。

Coming into the third quarter, demand for recycled metals was strong, driven by improved global steel demand and inventory restocking. As the chart in the upper left corner of this slide indicates, however, ferrous export prices softened during the quarter as global steel demand weakened. By the end of the quarter, ferrous prices had decreased about 16% from their March highs. U.S. domestic prices lagged the fall in export prices but have converged since the end of the quarter. Turkey's lower demand during the quarter was driven by lower steel production, elevated input costs and economic uncertainty leading up to their presidential election in May.

進入第三季度，受全球鋼鐵需求增加和庫存補充的推動，再生金屬需求強勁。然而，如本投影片左上角的圖表所示，由於全球鋼鐵需求減弱，本季黑色金屬出口價格已走軟。截至本季末，黑色金屬價格已較 3 月高點下跌約 16%。美國國內價格跌幅落後出口價格的跌幅，但自本季末以來已趨於趨同。土耳其本季需求下降是由於鋼鐵產量下降、投入成本上升以及五月總統大選前的經濟不確定性。

An increase in Chinese steel export volumes also impacted Turkey's steel demand. Asia's weaker demand during the quarter was similarly impacted by higher Chinese steel exports and a slower-than-expected economic recovery in China which dampened market activity. Since the end of the quarter, ferrous export demand off the East Coast has shown a slight upward bias. Ferrous export prices to Turkey reflect continued tight supply in the global deep sea market, an increase in demand for July shipments against lower than normal June scrap import volumes and less political uncertainty.

中國鋼鐵出口量的增加也影響了土耳其的鋼鐵需求。本季亞洲需求疲軟同樣受到中國鋼鐵出口增加和中國經濟復甦慢於預期的影響，抑制了市場活動。自本季末以來，東海岸黑色金屬出口需求略有上升趨勢。對土耳其的黑色金屬出口價格反映出全球深海市場供應持續緊張，七月出貨量需求增加而六月廢鋼進口量低於正常水平，且政治不確定性減少。

Turkey's need for 5 million tons of steel to support rebuilding efforts in the Iskenderun region implies a need for around 6 million tons of ferrous scrap. We expect that even accounting for Turkish domestic scrap generated by earthquake cleanup activities, Turkey's scrap imports should rise materially to meet this need. In the Asian markets, ferrous prices since the end of Q3 have also stabilized, driven by expectations of Chinese increased fiscal stimulus and reduced steel exports, stronger demand in South Asia and slower seasonal scrap generation in the region.

土耳其需要 500 萬噸鋼材來支援伊斯肯德倫地區的重建工作，這意味著需要約 600 萬噸廢鋼。我們預計，即使考慮到地震清理活動產生的土耳其國內廢料，土耳其的廢料進口量也應該大幅增加以滿足這一需求。在亞洲市場，受中國增加財政刺激措施和減少鋼鐵出口的預期、南亞需求增強以及該地區季節性廢鋼生產放緩的推動，自第三季末以來，鐵礦石價格也趨於穩定。

Turning to nonferrous, coming into the third quarter, we saw stronger demand for nonferrous products globally, including from restocking and the lifting of China's COVID lockdown. And similar to the ferrous market, prices for nonferrous weakened during the quarter as the slower economic activity in China impacted nonferrous metal consumers in Southeast Asia and India. Since the end of the quarter, prices have continued to soften a bit due to seasonally slower industrial activity.

談到有色金屬，進入第三季度，我們看到全球對有色金屬產品的需求更加強勁，包括補充庫存和中國解除 COVID 封鎖。與黑色金屬市場類似，由於中國經濟活動放緩影響了東南亞和印度的有色金屬消費者，有色金屬價格在本季走弱。自本季結束以來，由於季節性工業活動放緩，價格持續略有走軟。

Turning to finished steel, while demand and prices came off their near-record highs, metal spreads remained robust during Q3. Although higher interest rates and tighter credit conditions could lead to softer demand, there are several offsetting trends, including demand supported by the U.S. infrastructure bills and the Buy America and Buy Clean directives. Our Oregon steel mill with its range of low-carbon long products, including our net zero carbon emission GRN steel product line is well positioned to meet this rising demand. Let's turn now to Slide 6 to review the longer-term outlook for recycled metals.

談到成品鋼，雖然需求和價格從接近歷史高點回落，但金屬價差在第三季依然保持強勁。儘管更高的利率和更嚴格的信貸條件可能導致需求疲軟，但也存在幾種抵消趨勢，包括美國基礎設施法案以及「購買美國產品」和「購買清潔產品」指令所支持的需求。我們的俄勒岡鋼廠擁有一系列低碳長材產品，包括我們的淨零碳排放 GRN 鋼產品線，能夠很好地滿足這一不斷增長的需求。現在讓我們翻到投影片 6 回顧再生金屬的長期前景。

Decarbonization is a powerful structural driver of demand for recycled metals, which require less carbon to produce than mined metals. Many low-carbon technologies are widely acknowledged to be more metal intensive. As a result, the structural demand for recycled metals remains very positive, supported by the increased focus on decarbonization and the transition to low carbon technologies, the anticipated structural deficits for copper and nickel and the increased demand from manufacturers and retailers to maximize their use of recycled materials and reduce the environmental impact of their activities.

脫碳是再生金屬需求的強大結構性驅動因素，因為生產再生金屬所需的碳比開採的金屬少。人們普遍認為，許多低碳技術需要更多的金屬。因此，再生金屬的結構性需求仍然非常積極，這得益於對脫碳和向低碳技術轉型的日益關注、銅和鎳的預期結構性赤字以及製造商和零售商對最大限度地利用再生材料和減少其活動對環境影響的需求增加。

We can see how some of these trends have already been translated into higher ferrous scrap metal usage by looking at the chart on this slide. Electric arc furnace steelmaking capacity, which uses ferrous scrap as its primary raw material has been expanding and is projected to increase further. Aligned with these structural trends, we continue to focus on providing products and services that meet this demand, such as our GRN steel products and our 3PR services. Our 3PR brand reflects a rapidly growing service and supply chain solution for our customers, enabling greater recycling rates, reductions in material going to landfill, an improved carbon footprint and enhanced sustainability reporting.

透過查看這張投影片上的圖表，我們可以看到其中一些趨勢已經轉化為更高的黑色廢金屬使用量。以廢鋼為主要原料的電弧爐煉鋼產能不斷擴大，預計還會進一步增加。與這些結構性趨勢保持一致，我們將繼續專注於提供滿足此需求的產品和服務，例如我們的GRN鋼鐵產品和我們的3PR服務。我們的 3PR 品牌體現了我們為客戶提供快速成長的服務和供應鏈解決方案，從而實現更高的回收率、減少進入垃圾掩埋場的材料、改善碳足跡並增強永續性報告。

Turning now to Slide 7. As we often say, sustainability is at the core of what we do and how we operate and has been since our founding in 1906. This quarter, we were honored to be named as one of TIME 100's Most Influential Companies. Our inclusion on this list reflects the contributions of all of our employees, who are leading the way in providing solutions to companies, governments and communities focused on carbon reduction and committed to supporting a circular economy. As a 117-year-old company with roots in the "old economy," this recognition is a great example of how sustainability principles can be successfully and profitably applied to industrial companies.

現在翻到第 7 張投影片。正如我們常說的那樣，自 1906 年成立以來，永續性一直是我們工作和營運的核心。本季度，我們很榮幸被評為《時代》雜誌 100 強最具影響力的公司之一。我們被列入此名單反映了我們所有員工的貢獻，他們在為專注於減少碳排放並致力於支持循環經濟的公司、政府和社區提供解決方案方面處於領先地位。作為一家擁有 117 年歷史、紮根於「舊經濟」的公司，這項認可很好地詮釋了永續發展原則如何成功且有利可圖地應用於工業公司。

I encourage you to visit our website to view our latest Sustainability Report, which describes in more detail our multiyear people, planet and profit goals that underpin our sustainability framework.

我鼓勵您造訪我們的網站，查看我們的最新永續發展報告，該報告更詳細地描述了我們永續發展框架所支持的多年人員、地球和利潤目標。

So let's turn now to Slide 8 for an update on our strategic priorities. In an economic environment, characterized by market volatility and inflationary pressures, wWe continue to be focused on managing the things within our control. Our third quarter results reflect meaningful progress and benefits from our strategic priorities.

現在讓我們翻到第 8 張投影片來了解我們的策略重點的最新情況。在以市場波動和通膨壓力為特徵的經濟環境中，我們繼續專注於管理我們能夠控制的事情。我們的第三季業績反映了我們策略重點取得的重大進展和效益。

These priorities are directly aligned with the long-term trends of decarbonization and the corresponding need for more recycled metals and can be summarized as follows:

這些優先事項與脫碳的長期趨勢以及對更多再生金屬的相應需求直接相關，可以總結如下：

First, technology investments in advanced metal recovery systems at our major recycling operations. These systems enable us to extract more nonferrous metals from our shredding activities, increase throughput and improve our margins, expand our product offerings and customer base and reduce materials going to landfills.

首先，我們在主要回收業務中對先進的金屬回收系統進行技術投資。這些系統使我們能夠從粉碎活動中提取更多的有色金屬，增加產量並提高我們的利潤率，擴大我們的產品供應和客戶群，並減少進入垃圾掩埋場的材料。

As Stefano will describe in more detail, this quarter's results reflect a significant contribution from the systems commissioned to date.

正如 Stefano 所詳細描述的，本季的業績反映了迄今為止已投入使用的系統的重大貢獻。

Second, volume growth. We are highly focused on increasing our ferrous and nonferrous volumes through a combination of organic growth and recent acquisitions. Our multiyear focus on this strategic priority has led to an annual 6% volume growth rate between fiscal '16 and fiscal '22. On a year-over-year basis, our nonferrous sales volumes are up over 8%, driven by higher purchased nonferrous materials and the ramp-up of advanced recovery technologies.

第二，數量增加。我們高度致力於透過有機成長和近期收購相結合的方式增加我們的黑色金屬和有色金屬產量。我們多年來一直專注於這項策略重點，這使得2016財年到22財年期間的年銷售成長率達到6%。與去年同期相比，我們的有色金屬銷量成長了 8% 以上，這得益於有色金屬購買量增加和先進回收技術的提升。

While our year-over-year ferrous growth rate in fiscal '23 is relatively flat, we expect the customer and product initiatives we have underway to drive future volume growth.

儘管我們 23 財年的黑色金屬年增率相對持平，但我們預計，正在進行的客戶和產品計劃將推動未來銷售成長。

Third, expansion of our products and services to meet the increasing demand for recycled metals. Examples include our GRN steel products and the 3PR services we provide to manufacturers and retailers.

第三，擴大我們的產品和服務以滿足日益增長的再生金屬需求。例子包括我們的 GRN 鋼鐵產品和我們為製造商和零售商提供的 3PR 服務。

And fourth, productivity initiatives that we undertake as part of our continuous improvement culture. These initiatives are particularly important in the face of inflationary pressures. In Q3, we achieved the full run rate of benefits from the productivity initiatives that we announced earlier in this fiscal year. So now let me turn it over to Stefano for a more detailed review of our financial and operating performance. Stefano?

第四，我們作為持續改善文化的一部分所採取的生產力措施。在面對通膨壓力的情況下，這些措施尤其重要。在第三季度，我們實現了本財年早些時候宣布的生產力舉措的全部收益。現在，讓我把話題交給斯特凡諾，讓他更詳細地審查我們的財務和營運表現。斯蒂法諾？

Thank you, Tamara, and good morning. I'll start with a review of our consolidated results and provide an update on our ferrous sales and the market dynamics. Adjusted EBITDA per ferrous ton in the third quarter was $48, nearly double sequentially and adjusted EBITDA was $56 million. Our performance benefited from higher average net selling prices for recycled metals coming into the quarter. Despite the increase in scrap flows resulting from normal spring seasonality, the expansion in metal spreads for recycled metals in the higher price environment was limited by the continued tightness in supply flows.

謝謝你，塔瑪拉，早安。我將首先回顧我們的綜合業績，並提供有關我們的黑色金屬銷售和市場動態的最新情況。第三季每噸鐵礦石調整後息稅折舊攤提前利潤為 48 美元，較上一季增加近一倍，調整後息稅折舊攤銷前利潤為 5,600 萬美元。我們的業績受惠於本季再生金屬平均淨售價的上漲。儘管受春季正常季節性影響，廢金屬流量增加，但由於供應流持續緊張，高價環境下再生金屬價差的擴大受到限制。

Metal margins also benefited from shipments contracted before market prices began to soften in the second half of the quarter. The movement in prices in the third quarter led to a modest benefit from average inventory accounting of approximately $2 per ferrous ton, significantly smaller than the $8 per ferrous ton benefit we saw in the second quarter. Our results also reflected a more significant contribution from our advanced nonferrous recovery technology program as we continue our ramp-up activities.

在本季下半段市場價格開始走軟之前，金屬利潤率也因出貨量收縮而受益。第三季的價格變動導致平均庫存核算獲得了約 2 美元/噸鐵的小幅收益，明顯低於第二季每噸 8 美元的收益。我們的業績也反映出，隨著我們持續進行提昇活動，先進的有色金屬回收技術專案做出了更重大的貢獻。

These systems contributed meaningfully to the increase in nonferrous sales volumes of 26% sequentially. The contribution from finished steel products was a significant driver of our consolidated performance benefiting from seasonally higher construction demand and higher volumes and utilization. We also captured seasonally higher retail parts sales at our Pick-n-Pull platform. During the third quarter, we achieved the full quarterly run rate of benefits from the productivity initiatives we announced and implemented earlier in the fiscal year, targeting an aggregate annual benefit of $60 million, focused on a reduction of production costs, operating efficiencies and yield improvements as well as lower SG&A expense. While the magnitude of the inflationary pressure on operating costs appears to have diminished compared to recent quarters, mitigating increases in operating costs remains a priority.

這些系統對有色金屬銷量較上月成長26%做出了重大貢獻。受惠於季節性建築需求增加以及產量和利用率上升，成品鋼材的貢獻是我們綜合績效的重要推手。我們還在 Pick-n-Pull 平台上獲得了季節性更高的零售零件銷售額。第三季度，我們實現了本財年早些時候宣布並實施的生產力舉措的全部季度運行效益，目標是實現年度總效益 6,000 萬美元，重點是降低生產成本、提高運營效率和產量以及降低銷售、一般和行政費用。儘管與最近幾季相比，通膨對營運成本的壓力似乎有所減弱，但緩解營運成本的上漲仍然是公司的首要任務。

Turning to the ferrous dynamics in the quarter, our ferrous sales volumes were down 8% sequentially against a tough second quarter comparison when volumes were up nearly 50% as they benefited from timing of sale of several previously delayed bulk shipments. Average net selling ferrous prices were up 13% sequentially, reflecting shipments contracted at higher prices earlier in the spring. The share of domestic ferrous shipments was 47% in the quarter. our top sales destinations for ferrous exports were Bangladesh, Turkey and Italy. Now let's move to Slide 10 for an update on nonferrous sales and the market dynamics.

回顧本季的黑色金屬動態，我們的黑色金屬銷售量環比下降 8%，而第二季度的銷售量則增長了近 50%，這得益於之前幾批延遲發貨的散裝貨物的銷售時機。平均淨銷售黑色金屬價格較上季上漲 13%，反映出春季初出貨量以較高的價格收縮。本季國內黑色金屬出貨量佔 47%。我們的黑色金屬出口主要銷售目的地是孟加拉、土耳其和義大利。現在讓我們轉到投影片 10，了解有色金屬銷售和市場動態的最新情況。

Average net selling prices for copper, aluminum and other nonferrous products were up 2% sequentially. Nonferrous sales volumes were up 26% sequentially, driven by increased purchases and higher production and recovery yields associated with our advanced nonferrous technology equipment. We sold our nonferrous products to 13 countries with the major export destinations being Malaysia, India and China. Our product mix is highly diversified with sales of products recovered from shredding operations reaching around half of total nonferrous volumes.

銅、鋁和其他有色金屬產品的平均淨售價較上月上漲2%。有色金屬銷量環比增長 26%，這得益於採購量的增加以及先進有色金屬技術設備的生產和回收率的提高。我們的有色金屬產品銷往13個國家，主要出口目的地是馬來西亞、印度和中國。我們的產品結構高度多樣化，從粉碎作業中回收的產品的銷售量佔有色金屬總銷售量的一半左右。

Now let's move to Slide 11 to provide an update on our technology investments.

現在讓我們轉到投影片 11，提供有關我們的技術投資的最新資訊。

We continue to advance our technology program focused on increasing metal recovery of nonferrous material and generating more furnace-ready higher-value products. Once fully operational, we expect our technologies to contribute to an increase of at least 20% of nonferrous volumes recovered from shredding operations. Product optionality gives us the ability whether to decide to process material into higher grades depending on market conditions and demand for the products.

我們繼續推進我們的技術計劃，重點是提高有色金屬材料的回收率和生產更多可投入高爐使用的高價值產品。一旦全面投入運營，我們預計我們的技術將使從粉碎作業中回收的有色金屬量增加至少 20%。產品可選性使我們能夠根據市場條件和產品需求來決定是否將材料加工成更高等級。

We also have the option to flex purchases of third-party materials such as Zorba for processing and upgrading in our facilities. As shown in the slide, our initiative comprises 13 systems in total. Of these, 6 are advanced separation systems, which are mostly already operational with one in commissioning. We also have 7 primary nonferrous systems recovering aluminum and copper, which are the main drivers of the projected increase in recovery volumes.

我們還可以選擇靈活購買第三方材料（例如 Zorba），以便在我們的設施中進行加工和升級。如投影片所示，我們的計劃總共包括 13 個系統。其中6個為先進的分離系統，大部分已投入運行，其中一個正在調試中。我們還有 7 個主要有色金屬系統回收鋁和銅，這是預計回收量增加的主要驅動力。

In June, we began commissioning on the West Coast of one of these primary recovery systems bringing to 5 the number of those that are either operational or in various stages of commissioning and completion. This leaves two major copper recovery systems to construct on the West Coast to complete our investment program of which one is targeted to start commissioning by the end of the summer. The other one is currently awaiting permitting approval. Subject to this step, we still target construction and commissioning by the end of calendar 2023.

六月份，我們開始在西海岸調試其中一個主要回收系統，這樣一來，已投入運行或處於不同調試和完工階段的回收系統數量就增至 5 個。剩下兩個主要的銅回收系統需要在西海岸建造以完成我們的投資計劃，其中一個計劃在夏季結束時開始投入使用。另外一個目前正在等待許可批准。根據這一步驟，我們仍計劃在 2023 年底前完成建造並投入使用。

We continue to target substantial achievement of the estimated run rate benefits to EBITDA of $10 per ferrous ton by the end of calendar year 2023 upon completion of final permitting, construction, commissioning and ramp-up for all systems. The contribution to performance from these technologies in the third quarter increased to more than half of the targeted full run rate as we achieved higher yields on our primary nonferrous recovery systems, and also benefited from particularly supportive pricing for the nonferrous products we generated.

我們繼續致力於在 2023 年底前完成所有系統的最終許可、建造、調試和提升後，大幅實現每噸鐵 10 美元的 EBITDA 預計運行率效益。由於我們的主要有色金屬回收系統的收益更高，並且受益於我們生產的有色金屬產品的特別支持性定價，這些技術對第三季度業績的貢獻增加到目標滿負荷運行率的一半以上。

We expect the overall capital investment for these projects to be in the range of $130 million with approximately $5 million left to complete the projects.

我們預計這些項目的總資本投資將在 1.3 億美元左右，剩餘約 500 萬美元用於完成項目。

Now let's move to Slide 12 to discuss our steel mill performance. Finished steel sales volumes of 142,000 tons were up sequentially by 30% as we benefited from strong seasonal construction demand in the West. Our average mill utilization was 97%, which was higher than the U.S. average of approximately 76% for the period. Average net selling prices for finished steel decreased slightly sequentially. Metal spreads at our mill remained robust, although down from the record highs experienced during calendar '22. In the medium and longer term, we believe our mill stands to benefit from demand expected to be created by the U.S. infrastructure build.

現在我們轉到投影片 12 來討論我們的鋼廠業績。受惠於西部地區旺盛的季節性建築需求，成品鋼材銷售量達 142,000 噸，較上季成長 30%。我們的平均工廠利用率為 97%，高於美國同期約 76% 的平均利用率。成品鋼平均淨銷售價格較上季略有下降。儘管較 22 年的歷史最高水準有所下降，但我們工廠的金屬價差依然強勁。從中期和長期來看，我們相信我們的工廠將受益於美國基礎設施建設預期創造的需求。

Now let's move to Slide 13 and discuss cash flow, capital structure and our outlook for the fourth quarter.

現在讓我們轉到第 13 張投影片，討論現金流、資本結構和我們對第四季的展望。

In the third quarter, cash flow generated from EBITDA profitability was more than offset by a detriment from working capital associated primarily with the timing of sale and collection for several ferrous bulk shipments at the end of the quarter. Through the first 3 quarters of our fiscal year, our cumulative operating cash flow is slightly positive. CapEx spend in the third quarter was $27 million. For fiscal '23 as a whole, we continue to project our CapEx to be in the range of $110 million to $120 million. Slightly less than 1/3 of the fiscal '23 CapEx is for growth projects, including our technology initiatives, with the remaining for maintaining the business and environmental-related capital projects.

第三季度，EBITDA獲利產生的現金流被營運資本的損失所抵消，這主要與季度末幾批黑色金屬散裝貨物的銷售和收貨時間有關。在本財政年度的前三個季度中，我們的累計經營現金流略微為正。第三季的資本支出為 2700 萬美元。就整個 23 財年而言，我們繼續預期資本支出在 1.1 億至 1.2 億美元之間。 23財年的資本支出略少於1/3用於成長項目，包括我們的技術計劃，其餘部分用於維持業務和環境相關的資本項目。

Excluded from this annual range is CapEx spend associated with the repair and replacement of the shredder enclosure building at our Everett facility during fiscal '23, which has been approximately $12 million to date. As these expenditures are expected to be substantially recovered through insurance over time. We received proceeds from insurance of approximately $8 million in the third quarter related to this project, lowering the net CapEx spend in the quarter to just below $20 million.

此年度範圍不包括與我們 23 財年期間修理和更換埃弗雷特工廠的粉碎機外殼建築相關的資本支出，迄今為止該支出約為 1200 萬美元。因為這些支出預計會隨著時間的推移透過保險大幅收回。我們在第三季度獲得了與該項目相關的約 800 萬美元的保險收益，從而將本季度的淨資本支出降低至略低於 2000 萬美元。

Net debt was $346 million at the end of the third quarter. Availability under our credit facility remains sizable with a borrowing capacity of $800 million and a maturity of August 2027. Net leverage was 27% at quarter end, and the ratio of net debt to adjusted EBITDA was 2.5x. We also returned capital to shareholders through our quarterly dividend. Our effective tax rate on adjusted third quarter results was 30.6%, slightly higher than expected due to the effect of certain tax items in the quarter.

第三季末淨債務為3.46億美元。我們的信貸安排下的可用資金仍然相當可觀，借款能力為 8 億美元，到期日為 2027 年 8 月。季末的淨槓桿率為 27%，淨負債與調整後 EBITDA 的比率為 2.5 倍。我們也透過季度股利向股東返還資本。我們調整後的第三季業績的有效稅率為 30.6%，由於本季某些稅項的影響，略高於預期。

Year-to-date in fiscal '23, our adjusted tax rate approximated 30%, which rate we would anticipate for the full fiscal year as well, subject to company performance and other tax items.

截至目前，23 財年我們的調整後稅率約為 30%，我們預計整個財年的稅率也將保持不變，但取決於公司業績和其他稅項。

Although there are more than 2 months left in the quarter, I'll now turn to our outlook for the fourth quarter of fiscal '23, which is based on market conditions and information we have today. Looking at some of the sequential dynamics in the current lower price environment, we expect an accounting detriment from our average inventory costing method in the range of $5 per ferrous ton in the fourth quarter.

儘管本季還剩下兩個多月的時間，但現在我將談論我們對 23 財年第四季的展望，這是基於市場狀況和我們今天掌握的資訊。從目前低價環境下的一些連續動態來看，我們預計第四季度平均庫存成本核算方法的會計損失將在每噸鐵 5 美元左右。

Excluding the impact of average inventory accounting of $5 per ferrous ton, we expect our consolidated adjusted EBITDA per ferrous ton to be around $40. We expect our ferrous, nonferrous and finished steel sales volumes to be in the range of their third quarter levels. The lower price environment for ferrous and nonferrous recycled metals together with continued tightness in supply flows is also expected to lead to a sequential contraction of metal spreads, compounded by the fact that in the third quarter, we benefited from selling ahead while prices declined in the latter part of the quarter.

不包括每噸鐵礦石平均庫存核算 5 美元的影響，我們預計每噸鐵礦石綜合調整後 EBITDA 約為 40 美元。我們預計黑色金屬、有色金屬和成品鋼的銷售量將與第三季的水平持平。黑色金屬和有色金屬再生金屬價格走低，加上供應流持續吃緊，預計也將導致金屬價差持續收縮。此外，在第三季度，我們受益於提前出售，而本季後半段價格下跌。

We expect the contribution from our steel mill to remain robust, but declined sequentially, including due to a planned maintenance outage during the summer. As the chart on the top left shows, we have a multiyear track record of generating positive annual operating cash flow through the cycle. We aim to continue this trend and generate positive operating cash flow in the fourth quarter and for the full fiscal 2023. And with that, I'll turn the call back over to Tamara.

我們預計鋼廠的貢獻將保持強勁，但環比下降，包括由於夏季的計劃維護停工。正如左上角的圖表所示，我們多年來一直在整個週期內產生正的年度營運現金流。我們的目標是延續這一趨勢，並在第四季度和整個 2023 財年產生正的營運現金流。說完這些，我將把電話轉回給塔瑪拉。

Thank you, Stefano. Our results this quarter reflect the positive impacts from our strategic investments and our productivity initiatives. We have a strong balance sheet, a track record of delivering positive operating cash flow through the cycle, an ability to invest in the growth and productivity of our company, and an uninterrupted record of returning capital to our shareholders. Despite current market headwinds, the structural demand for recycled metals remains positive, and our strategic focus and investments in recovery technologies, volume growth, new products and services and productivity are delivering meaningful benefits.

謝謝你，斯蒂法諾。本季的業績反映了我們的策略性投資和生產力措施的正面影響。我們擁有強勁的資產負債表、在整個週期內提供正營運現金流的記錄、對公司成長和生產力進行投資的能力，以及向股東持續回報資本的記錄。儘管當前市場面臨阻力，但對再生金屬的結構性需求仍然保持積極，我們在回收技術、產量成長、新產品和服務以及生產力方面的策略重點和投資正在帶來顯著的效益。

In closing, I'd like to thank our employees for their resilience and their dedication to working safely while continuously serving our customers and communities, supporting our suppliers and demonstrating the critical and essential role of our business and industry in the economy. You have demonstrated once again why we have continued to be a leader in the recycling industry for over a century. And now operator, let's open the call for questions.

最後，我要感謝我們的員工，感謝他們的堅韌和對安全工作的奉獻，他們不斷服務我們的客戶和社區，支持我們的供應商，並展示了我們的業務和行業在經濟中的關鍵和重要作用。你們再次證明了為什麼我們能夠在一個多世紀以來一直處於回收業的領先地位。現在，接線員，讓我們開始提問。

(Operator Instructions) I'm showing we have a question coming from the line of Phil Gibbs from Keybanc.

(操作員指示) 我的意思是，我們有一個問題來自 Keybanc 的 Phil Gibbs。

I just wanted to clarify the nonferrous investment that you have right now? I think you said $10 a ton of EBITDA when fully completed, and that's been consistent this entire duration of the investment period. But wanted to just clarify what you said specifically about the quarter that just ended. I thought I had heard something like $5 a ton of benefit from the program in the quarter.

我只是想澄清一下您目前的有色金屬投資？我記得您說過，在完全完成的情況下，每噸的 EBITDA 為 10 美元，而且在整個投資期間，這一數字一直保持一致。但我想澄清一下您對剛結束的季度的具體看法。我以為我聽過類似本季該計劃每噸 5 美元的收益。

Good morning, Phil. This is Stefano. Yes, the contribution to performance from these technologies in Q3 was more than half of the targeted run rate, slightly more than that as we achieved higher yields on our primary nonferrous recovery systems and also benefited from particularly supportive pricing in the quarter for those products we generated. We also purchased more third-party materials for processing and upgrading in our facilities. So that is correct. And as we think about going ahead, with the decline in nonferrous pricing that we saw into Q4, we would expect the benefit in Q4 to probably be slightly less than half of that run rate and then gradually increasing towards that goal that we have, and we still target a substantial achievement of the full run rate by the end of 2023, that full run rate being the $10 per ton.

早上好，菲爾。這是史蒂法諾。是的，這些技術在第三季度對業績的貢獻超過了目標運行率的一半，並且略高一些，因為我們在主要有色金屬回收系統中實現了更高的收益，並且受益於本季度對我們生產的這些產品的特別支持性定價。我們還購買了更多第三方材料，用於我們的設施的加工和升級。這是正確的。展望未來，隨著第四季度有色金屬價格的下跌，我們預計第四季度的收益可能略低於該運行率的一半，然後逐步朝著我們的目標增加，我們仍計劃在 2023 年底實現大幅實現全運行率，即每噸 10 美元。

And then in terms of the net working capital document you called out to the third quarter and some -- I think you had called business looking at my notes here, you had called some specifically out some perhaps some boats or cargoes that were held in inventory. Maybe some color in terms of the magnitude of that versus what you may have been expecting. And then what should we be assuming for net working capital unwinds in the fourth quarter?

然後，就您在第三季提到的淨營運資本文件而言，我想您已經打電話給企業查看了我這裡的筆記，您特別提到了一些可能涉及庫存的一些船隻或貨物。就其量級而言，可能與您的預期有所不同。那麼，我們該如何假設第四季的淨營運資本減少呢？

Yes, Phil. So in Q3, we had operating cash outflows. And it was really due to the timing of those ships and the ships went out the collection though at quarter end didn't happen. So it happened early in Q4. And that's really the primary driver of the detriment from net working capital in Q3. And we were expecting, right, EBITDA profitability to shine, which it did and that was more than offset by this net working capital detriment. Now looking into Q4, we do expect positive operating cash flow. And it should include from our perspective and expectation that the detriment from net working capital that we saw in Q3, that will reverse leading to a stronger release of net working capital in Q4 plus the positive EBITDA profitability. We have a multiyear track record of generating positive cash flows through the cycle, and we aim to continue this trend in calendar '23, looking [through].

是的，菲爾。因此在第三季度，我們出現了經營現金流出。這實際上是由於這些船隻的時間安排，儘管在季度末船隻已經出發收集，但並沒有發生這種情況。所以它在第四季初就發生了。這確實是第三季淨營運資本損失的主要原因。我們原本預期 EBITDA 獲利能力會大幅提升，事實也確實如此，而且淨營運資本損失抵銷了這一成長幅度。現在展望第四季度，我們確實預期經營現金流為正。從我們的觀點和預期來看，這應該包括我們在第三季度看到的淨營運資本的損失將發生逆轉，從而導致第四季度淨營運資本釋放更強勁，並帶來積極的 EBITDA 盈利能力。我們擁有在整個週期中產生正現金流的多年記錄，我們的目標是在2023年繼續保持這一趨勢。

And then just lastly, on the steel side. Very strong volumes in the quarter, expectation for very strong volumes to continue in the fourth quarter. And from your [advantage] point, as a company, are you seeing some of these regional infrastructure projects get led? Or is this just effectively some of the -- is more of the seasonal dynamics and the catch up from a slow start to the year.

最後，關於鋼鐵方面。本季的銷售量非常強勁，預計第四季度的銷售量將繼續保持強勁。那麼從您作為一家公司的 [優勢] 角度來看，您是否看到其中一些區域基礎設施項目得到了主導？或者這其實只是一些季節性動態，以及從今年開局緩慢到追趕的過程。

Yes. Thanks, Phil. We are not really seeing the infrastructure projects coming in yet. But we're seeing a lot of work getting them ready. And this robust demand is just the general strength of the West Coast economy and seasonal activity. But we do anticipate those infrastructure dollars flowing through more strongly as '23 progresses and into calendar '24.

是的。謝謝，菲爾。我們還沒有真正看到基礎設施項目的到來。但我們看到他們為此做了大量準備工作。這種強勁的需求只是西海岸經濟和季節性活動的整體表現。但我們確實預計，隨著23年和24年的到來，這些基礎設施資金將會更加強勁地流入。

(Operator Instructions) And I am showing no further questions in the queue at this time. I will turn the call back over to Tamara Lundgren for any closing remarks.

（操作員指示）目前我表示隊列中沒有其他問題。我會把電話轉回給 Tamara Lundgren，請她做最後發言。

Thank you very much, and thank all of you for your time today. We look forward to speaking with you again in October when we report our fourth quarter results. In the interim, stay safe and stay well.

非常感謝，也感謝大家今天的寶貴時間。我們期待在十月份報告第四季度業績時再次與您交談。在此期間，請保持安全並保持健康。

Ladies and gentlemen, that does conclude our conference for today. Thank you for your participation. You may now disconnect.

女士們、先生們，今天的會議到此結束。感謝您的參與。您現在可以斷開連線。