Steel Dynamics, Inc.

Good day and welcome to the Steel Dynamics third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. After management's prepared remarks, we will conduct a question and answer session and instructions will follow at that time. Please be advised that this call is being recorded today, October 17th, 2024, and your participation implies consent to a recording of this call. If you do not agree to these terms, please disconnect. At this time, I would like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

Thank you, Kelly. Good morning, and welcome to Steel Dynamics' third quarter 2024 earnings conference call. As a reminder, today's call is being recorded and will be available on our website for replay later today. Leading today's call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics, Teresa Wagler, Executive Vice President and Chief Financial Officer, and Barry Schneider, President and Chief Operating Officer. The other members of our senior leadership team are joining us on the call individually. Some of today's statements, which speak only as of this date, may be forward-looking and predictive, typically preceded by believe, expect, anticipate, or words of similar meaning. They are intended to be protected by the Private Securities Litigation Reform Act of 1995, should actual results turn out differently. Such statements involve risk and uncertainties related to integrating or starting up new assets, the aluminum industry, the use of estimates and assumptions in connection with our anticipated project returns, and our steel, metals recycling, and fabrication businesses, as well as to general business and economic conditions. Examples of these are described in the related press release, as well as in our annually filed SEC Form 10-K under the headings Forward-Looking Statements and Risk Factors, found on the Internet at www.sec.gov, and if applicable, in any later SEC Form 10-Q. You'll also find any reference non-GAAP financial measures reconciled to the most directly compared GAAP measures in the press release issued yesterday entitled Steel Dynamics Reports Third Quarter 2024 Results. And now I'm pleased to turn the call over to Mark.

Thank you, David. Good morning, everyone. Thank you for joining our third quarter 24 earnings call. As you have read, and seemingly many have concluded, our teams executed well through the quarter, achieving another solid financial and operational performance. Most gratifying to us, to me in particular, was achieving another great quarter for safety. The ramp-ups of our four new value-add flat-brill steel coating lines have been an unqualified success with the expectation of full earnings benefit in 2025. These lines represent an additional 1.1 million tons of higher margin product diversification for us. In Texas, despite a couple of challenges early in the quarter, the Sinton team gained considerable momentum. running at a 72% utilization rate of scheduled runtime in September. We had extended periods in excess of 90% and were achieved during that quarter, and I think it proves the mill's ultimate capability. Deal shipments were 3.2 million tons, third quarter revenues, 4.3 billion, adjusted EBITDA was 557 million, and cash flow from operations, 760 million. As I stated, We had a great quarter in terms of safety. Historically, the summer months can be a challenging period, but the teams reversed that trend this year with an excellent performance. Not only was that trend reversed, but both our total recordable incident rate and lost time rates were the lowest in our history. Our employee dedication to our Take Control of Safety program is extraordinary. Our core safety teams visited 30 facilities in the third quarter alone. which is, I think, a clear testament to their commitment to keep each other safe. We continue to build a world-class safety culture, and the positive results have been clearly demonstrated. Eighty-four percent of our locations in the third quarter did not have a recordable injury. That's 104 locations out of our 124. And 94 percent of them did not have a lost-time incident. I'm continually inspired by the commitment our team members have for one another. They really, truly consider themselves family and challenge the status quo every day to do better in every way. That's why we are so focused on providing the very best for their health, their safety, and their welfare. That said, there's still a lot of work to do as we strive toward a zero-incident environment. But with that, I will pause for Teresa first, then Barry to add color for the quarter.