Radius Recycling(RDUS) - 2025 Q1 - Quarterly Report

Revenue Performance - Ferrous revenues decreased by 6% to $327.1 million in Q1 FY2025 compared to$348.9 million in Q1 FY2024[138] - Nonferrous revenues increased by 8% to $182.0 million in Q1 FY2025 compared to$169.3 million in Q1 FY2024[138] - Steel revenues decreased by 10% to $101.9 million in Q1 FY2025 compared to$113.5 million in Q1 FY2024[138] - Total revenues decreased by 2% to $656.5 million in Q1 FY2025 compared to$672.9 million in Q1 FY2024[138] - Revenues in Q1 fiscal 2025 decreased by 2% compared to the prior year period, with ferrous product prices down 5% and nonferrous product prices up 12%[143] Profitability and Losses - Gross margin decreased by 15% to $33.4 million in Q1 FY2025 compared to$39.5 million in Q1 FY2024[138] - Diluted loss per share from continuing operations attributable to Radius shareholders was $(1.30) in Q1 FY2025 compared to$(0.64) in Q1 FY2024[135] - Net loss increased to $37 million in Q1 FY2025 compared to$18 million in Q1 FY2024[135] - Adjusted EBITDA was break-even in Q1 FY2025 compared to $1 million in Q1 FY2024[135] - Net loss in Q1 fiscal 2025 was$37 million, compared to $18 million in the prior year quarter, with adjusted EBITDA break-even compared to$1 million in the prior year quarter[144] - Adjusted net loss from continuing operations attributable to Radius shareholders was $38.101 million for the three months ended November 30, 2024, compared to$18.032 million for the same period in 2023[191] Debt and Financial Position - Debt increased to $445 million as of November 30, 2024, compared to$415 million as of August 31, 2024[136] - Cash balances as of November 30, 2024, were $15 million, with debt increasing to$445 million from $415 million as of August 31, 2024[150] - Total debt, net of cash, was$430.222 million as of November 30, 2024, compared to $409.218 million as of August 31, 2024[183] - Net borrowings of debt for the three months ended November 30, 2024, were$30.85 million, compared to $34.531 million for the same period in 2023[184] - The company had$7 million outstanding under stand-by letters of credit as of November 30, 2024[179] - As of November 30, 2024, 22% of the company's accounts receivable balance was covered by letters of credit, down from 28% as of August 31, 2024[198] Operational Metrics - Rolling mill utilization decreased to 81% in Q1 FY2025 compared to 95% in Q1 FY2024[138] - Ferrous and nonferrous sales volumes in Q1 fiscal 2025 decreased by 4% and 2%, respectively, due to tight scrap metal supply and lower U.S. manufacturing activity[143] Expenses and Cost Management - SG&A expense in Q1 fiscal 2025 decreased by 10% due to cost reduction measures, including a $2 million insurance recovery gain[145] - Interest expense in Q1 fiscal 2025 increased to$9 million from $5 million in the prior year quarter due to higher borrowings and interest rates[147] - Adjusted selling, general, and administrative expense for the three months ended November 30, 2024, was$58.758 million, compared to $62.689 million for the same period in 2023[188] Capital Expenditures and Investments - Capital expenditures in Q1 fiscal 2025 were$12 million, down from $25 million in the prior year period, with plans to invest$60 million in fiscal 2025[170] - The company invested $5 million in environmental projects in Q1 fiscal 2025, with plans to invest$20 million for such projects in fiscal 2025[173] Financial Ratios and Coverage - The company's consolidated asset coverage ratio was 1.15 to 1.00, and the consolidated leverage ratio was 0.43 to 1.00 as of November 30, 2024[167] - Adjusted EBITDA for the three months ended November 30, 2024, was $28 thousand, compared to$1.061 million for the same period in 2023[188] Dividends and Share Repurchases - The company declared a dividend of $0.1875 per common share for Q1 fiscal 2025, equating to an annual cash dividend of$0.75 per common share[175] - As of November 30, 2024, the company had authorization to repurchase up to 2.8 million shares of Class A common stock[176] Environmental and Legal Risks - The company faces potential material costs related to the Portland Harbor Superfund site, with no assurance of full coverage by insurance policies and Qualified Settlement Funds[174]