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Radius Recycling(RDUS) - 2025 Q2 - Quarterly Report
RDUSRadius Recycling(RDUS)2025-04-04 16:46

Financial Performance - In Q2 fiscal 2025, average net selling prices for ferrous products decreased by 14% compared to the prior year quarter, influenced by high levels of Chinese steel exports[151]. - Average net selling prices for finished steel products in Q2 fiscal 2025 were 9% lower than the prior year quarter, contributing to lower metal spreads[151]. - The net loss for Q2 fiscal 2025 was 33million,aslightimprovementfromanetlossof33 million, a slight improvement from a net loss of 34 million in the prior year quarter[154]. - Adjusted EBITDA for Q2 fiscal 2025 was break-even, compared to 3millionintheprioryearquarter[154].−NetlossforQ22025was3 million in the prior year quarter[154]. - Net loss for Q2 2025 was 32,965,000, a 3% improvement from 34,010,000inQ22024,andforthefirstsixmonths,thelosswas34,010,000 in Q2 2024, and for the first six months, the loss was 69,894,000 compared to 51,808,000intheprioryear[162].−AdjustedEBITDAforthesixmonthsendedFebruary28,2025,was51,808,000 in the prior year[162]. - Adjusted EBITDA for the six months ended February 28, 2025, was (452) thousand, a decrease from 3,858thousandforthesameperiodin2024[202].−DilutedlosspersharefromcontinuingoperationsattributabletoRadiusshareholderswas3,858 thousand for the same period in 2024[202]. - Diluted loss per share from continuing operations attributable to Radius shareholders was (1.15) for the three months ended February 28, 2025, compared to (1.19)forthesameperiodin2024[206].RevenueandSales−FerrousrevenuesforQ22025were(1.19) for the same period in 2024[206]. Revenue and Sales - Ferrous revenues for Q2 2025 were 318,955,000, a 1% increase from 316,097,000inQ22024,whilenonferrousrevenuesincreasedby9316,097,000 in Q2 2024, while nonferrous revenues increased by 9% to 179,012,000 from 164,481,000[157].−Totalrevenuesforthefirstsixmonthsoffiscal2025were164,481,000[157]. - Total revenues for the first six months of fiscal 2025 were 1,299,045,000, remaining flat compared to 1,293,956,000intheprioryear[161].−Averagenetsellingpricesfornonferrousproductsincreasedby101,293,956,000 in the prior year[161]. - Average net selling prices for nonferrous products increased by 10% in both Q2 and the first six months of fiscal 2025, while ferrous product prices decreased by 14% and 9%, respectively[161]. Cash Flow and Operating Activities - For the first six months of fiscal 2025, net cash provided by operating activities was 18 million, a significant improvement from net cash used of 56millionintheprioryearperiod[155].−Netcashprovidedbyoperatingactivitiesinthefirstsixmonthsoffiscal2025was56 million in the prior year period[155]. - Net cash provided by operating activities in the first six months of fiscal 2025 was 18,000,000, a significant improvement from a net cash used of 56,000,000inthesameperiodoffiscal2024[170].−Netcashprovidedbyfinancingactivitieswas56,000,000 in the same period of fiscal 2024[170]. - Net cash provided by financing activities was 1,000,000 in the first six months of fiscal 2025, a decrease from 108,000,000intheprioryear[175].DebtandCapitalExpenditures−Debtincreasedto108,000,000 in the prior year[175]. Debt and Capital Expenditures - Debt increased to 430 million as of February 28, 2025, up from 415millionasofAugust31,2024,primarilyduetoincreasedborrowingsforworkingcapitalandcapitalexpenditures[155].−Capitalexpendituresinthefirstsixmonthsoffiscal2025were415 million as of August 31, 2024, primarily due to increased borrowings for working capital and capital expenditures[155]. - Capital expenditures in the first six months of fiscal 2025 were 23,000,000, focused on upgrading equipment and investing in advanced technologies[174]. - Capital expenditures for the first six months of fiscal 2025 totaled 23million,downfrom23 million, down from 40 million in the prior year, with a planned investment of approximately 60millionforthefullfiscalyear[187].CostManagement−Thecompanyimplementedproductivityandcostreductioninitiativesthatledtoa1260 million for the full fiscal year[187]. Cost Management - The company implemented productivity and cost reduction initiatives that led to a 12% reduction in selling, general and administrative expenses in Q2 fiscal 2025 compared to the prior year quarter[151]. - Selling, general and administrative (SG&A) expenses decreased by 12% in Q2 2025 and 11% in the first six months, reflecting cost reduction measures[163]. - Interest expense increased to 9,000,000 in Q2 2025 from 6,000,000inQ22024,primarilyduetohigheraverageborrowingsandinterestrates[165].ShareholderActions−TheBoardofDirectorsdeclaredadividendof6,000,000 in Q2 2024, primarily due to higher average borrowings and interest rates[165]. Shareholder Actions - The Board of Directors declared a dividend of 0.1875 per common share for the second quarter of fiscal 2025, equating to an annual cash dividend of 0.75percommonshare[190].−Thecompanyhadremainingauthorizationtorepurchaseupto2.8millionsharesofClassAcommonstockasofFebruary28,2025,butdidnotrepurchaseanysharesduringthesecondquarteroffiscal2025[191].RiskManagement−Thecompanyactivelymanagescommoditypricerisk,witha100.75 per common share[190]. - The company had remaining authorization to repurchase up to 2.8 million shares of Class A common stock as of February 28, 2025, but did not repurchase any shares during the second quarter of fiscal 2025[191]. Risk Management - The company actively manages commodity price risk, with a 10% decrease in estimated selling price of inventory not having a material impact on net realizable value as of February 28, 2025[210]. - As of February 28, 2025, 17% of accounts receivable was covered by letters of credit, compared to 28% as of August 31, 2024[214]. Other Significant Events - The company entered into a Merger Agreement with Toyota Tsusho America, Inc., with each share of Radius Common Stock to be converted into 30.00 in cash upon closing[142]. - The company experienced a fire at its Everett facility in December 2021, with insurance claims resulting in an additional 6millionrecognizedinthefirsthalfoffiscal2024[143].−BusinessdevelopmentcostsforthethreemonthsendedFebruary28,2025,were6 million recognized in the first half of fiscal 2024[143]. - Business development costs for the three months ended February 28, 2025, were 2,541 thousand, compared to 140thousandforthesameperiodin2024[202].−Restructuringchargesandotherexit−relatedactivitiesamountedto140 thousand for the same period in 2024[202]. - Restructuring charges and other exit-related activities amounted to 1,422 thousand for the three months ended February 28, 2025, down from $3,175 thousand in the same period in 2024[202].