Delaware
|
31-1401455
|
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|
9227
Centre Pointe Drive, West Chester, Ohio
|
45069
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer
|
T
|
Accelerated
filer
|
£
|
|
Non-accelerated
filer
|
£
|
Smaller
reporting company
|
£
|
Page
|
||
PART
I.
|
|
Item
1.
|
AK
STEEL HOLDING CORPORATION
|
||||||||
(dollars
in millions)
|
||||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(unaudited)
|
2009
|
2008
|
||||||
Net
sales
|
$ | 922.2 | $ | 1,791.4 | ||||
Cost
of products sold (exclusive of items shown below)
|
923.0 | 1,513.2 | ||||||
Selling
and administrative expenses
|
47.8 | 56.5 | ||||||
Depreciation
|
51.3 | 52.0 | ||||||
Total
operating costs
|
1,022.1 | 1,621.7 | ||||||
Operating
profit (loss)
|
(99.9 | ) | 169.7 | |||||
Interest
expense
|
10.2 | 11.7 | ||||||
Other
income, net
|
2.3 | 5.4 | ||||||
Income
(loss) before income taxes
|
(107.8 | ) | 163.4 | |||||
Income
tax provision (benefit)
|
(34.2 | ) | 62.4 | |||||
Net
income (loss)
|
(73.6 | ) | 101.0 | |||||
Less:
Net loss attributable to noncontrolling interests
|
0.2 | 0.1 | ||||||
Net
income (loss) attributable to AK Steel Holding Corporation
|
$ | (73.4 | ) | $ | 101.1 | |||
Basic
and diluted earnings per share:
|
||||||||
Net
income (loss) attributable to AK Steel Holding Corporation common
stockholders
|
$ | (0.67 | ) | $ | 0.90 | |||
Common
shares and common share equivalents outstanding (weighted average in
millions):
|
||||||||
Basic
|
109.8 | 111.4 | ||||||
Diluted
|
109.8 | 112.4 | ||||||
Dividends
declared and paid per share
|
$ | 0.05 | $ | 0.05 | ||||
-----------------------------
|
||||||||
See
notes to condensed consolidated financial statements.
|
AK
STEEL HOLDING CORPORATION
|
||||||||
(dollars
in millions)
|
||||||||
March
31,
|
December
31,
|
|||||||
(unaudited)
|
2009
|
2008
|
||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 462.0 | $ | 562.7 | ||||
Accounts
receivable, net
|
369.7 | 469.9 | ||||||
Inventory,
net
|
526.4 | 566.8 | ||||||
Deferred
tax asset
|
470.7 | 333.0 | ||||||
Other
current assets
|
63.6 | 70.4 | ||||||
Total
Current Assets
|
1,892.4 | 2,002.8 | ||||||
Property,
Plant and Equipment
|
5,324.1 | 5,282.1 | ||||||
Less
accumulated depreciation
|
(3,267.6 | ) | (3,220.8 | ) | ||||
Property,
Plant and Equipment, net
|
2,056.5 | 2,061.3 | ||||||
Other
Assets:
|
||||||||
Investment
in AFSG
|
55.6 | 55.6 | ||||||
Other
investments
|
46.5 | 50.4 | ||||||
Goodwill
|
37.1 | 37.1 | ||||||
Other
intangible assets
|
0.3 | 0.3 | ||||||
Deferred
tax asset
|
350.8 | 459.1 | ||||||
Other
non-current assets
|
14.4 | 15.4 | ||||||
TOTAL
ASSETS
|
$ | 4,453.6 | $ | 4,682.0 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Accounts
payable
|
$ | 361.0 | $ | 348.1 | ||||
Accrued
liabilities
|
235.4 | 233.0 | ||||||
Current
portion of long-term debt
|
0.7 | 0.7 | ||||||
Current
portion of pension and other postretirement benefit
obligations
|
149.7 | 152.4 | ||||||
Total
Current Liabilities
|
746.8 | 734.2 | ||||||
Non-current
Liabilities:
|
||||||||
Long-term
debt
|
609.4 | 632.6 | ||||||
Pension
and other postretirement benefit obligations
|
2,028.4 | 2,144.2 | ||||||
Other
non-current liabilities
|
215.4 | 200.3 | ||||||
Total
Non-current Liabilities
|
2,853.2 | 2,977.1 | ||||||
TOTAL
LIABILITIES
|
3,600.0 | 3,711.3 | ||||||
Stockholders’
Equity:
|
||||||||
Preferred
stock, authorized 25,000,000 shares
|
— | — | ||||||
Common
stock, authorized 200,000,000 shares of $.01 par value each; issued 2009,
121,761,731 shares, 2008, 121,105,429 shares; outstanding 2009,
109,277,239 shares, 2008, 110,394,774 shares
|
1.2 | 1.2 | ||||||
Additional
paid-in capital
|
1,901.5 | 1,898.9 | ||||||
Treasury
stock, common shares at cost, 2009, 12,484,492 shares; 2008,
10,710,655 shares
|
(162.2 | ) | (150.8 | ) | ||||
Accumulated
deficit
|
(1,019.8 | ) | (940.9 | ) | ||||
Accumulated
other comprehensive income
|
130.4 | 159.6 | ||||||
Total
AK Steel Holding Corporation Stockholders’ Equity
|
851.1 | 968.0 | ||||||
Noncontrolling
interest
|
2.5 | 2.7 | ||||||
TOTAL
STOCKHOLDERS’ EQUITY
|
853.6 | 970.7 | ||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 4,453.6 | $ | 4,682.0 | ||||
----------------------------- | ||||||||
See
notes to condensed consolidated financial
statements.
|
AK
STEEL HOLDING CORPORATION
|
||||||||
(dollars in
millions)
|
||||||||
Three
Months Ended
|
||||||||
March
31,
|
||||||||
(unaudited)
|
2009
|
2008
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
income (loss)
|
$ | (73.6 | ) | $ | 101.1 | |||
Depreciation
|
51.3 | 52.0 | ||||||
Amortization
|
3.3 | 2.9 | ||||||
Deferred
income taxes
|
(13.8 | ) | 48.0 | |||||
Pension
contributions
|
(50.0 | ) | (75.0 | ) | ||||
Contribution
to Middletown retirees VEBA
|
(65.0 | ) | (468.0 | ) | ||||
Pension
and other postretirement benefit payments greater than
expense
|
(19.0 | ) | (28.1 | ) | ||||
Working
capital-Middletown Coke
|
1.0 | — | ||||||
Working
capital
|
124.8 | (36.6 | ) | |||||
Other
items, net
|
12.0 | 3.5 | ||||||
Net
cash flows from operating activities
|
(29.0 | ) | (400.2 | ) | ||||
CASH FLOWS FROM INVESTING
ACTIVITIES:
|
||||||||
Capital
investments
|
(32.9 | ) | (36.6 | ) | ||||
Capital
investments – Middletown Coke
|
(12.2 | ) | — | |||||
Other
items, net
|
0.4 | 0.1 | ||||||
Net
cash flows from investing activities
|
(44.7 | ) | (36.5 | ) | ||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Redemption
of long-term debt
|
(19.9 | ) | (0.1 | ) | ||||
Proceeds
from exercise of stock options
|
— | 2.3 | ||||||
Purchase
of treasury stock
|
(11.4 | ) | (9.1 | ) | ||||
Excess
tax benefits from stock-based compensation
|
— | 7.3 | ||||||
Common
stock dividends
|
(5.5 | ) | (5.6 | ) | ||||
Advances
from minority interest owner to Middletown Coke
|
11.2 | — | ||||||
Other
items, net
|
(1.4 | ) | 0.6 | |||||
Net
cash flows from financing activities
|
(27.0 | ) | (4.6 | ) | ||||
Net
decrease in cash and cash equivalents
|
(100.7 | ) | (441.3 | ) | ||||
Cash
and cash equivalents, beginning of period
|
562.7 | 713.6 | ||||||
Cash
and cash equivalents, end of period
|
$ | 462.0 | $ | 272.3 | ||||
Supplemental
disclosure of cash flow information:
|
||||||||
Net
cash paid (received) during the period for:
|
||||||||
Interest,
net of capitalized interest
|
$ | 1.4 | $ | 23.0 | ||||
Income
taxes
|
(27.0 | ) | 6.8 | |||||
Supplemental
disclosure of non-cash investing and financing activities
—
|
||||||||
Issuance
of restricted common stock and restricted stock units
|
$ | 4.0 | $ | 5.2 | ||||
-----------------------------
|
||||||||
See
notes to condensed consolidated financial statements.
|
NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
|
(dollars
in millions, except per share data, unless otherwise
indicated)
|
NOTE
1 – Basis of Presentation
|
NOTE
2 – Earnings and Dividends Per
Share
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Net
income (loss)
|
$ | (73.4 | ) | $ | 101.1 | |||
Less:
Distributed earnings to common stockholders
|
— | 5.6 | ||||||
Undistributed
earnings
|
$ | (73.4 | ) | $ | 95.5 | |||
Common
stockholders earnings – basic:
|
||||||||
Distributed
earnings to common stockholders
|
$ | — | $ | 5.6 | ||||
Undistributed
earnings to common stockholders
|
(73.4 | ) | 95.1 | |||||
Common
stockholders earnings – basic
|
$ | (73.4 | ) | $ | 100.7 | |||
Common
stockholders earnings – diluted:
|
||||||||
Distributed
earnings to common stockholders
|
$ | — | $ | 5.6 | ||||
Undistributed
earnings to common stockholders
|
(73.4 | ) | 95.5 | |||||
Common
stockholders earnings – diluted
|
$ | (73.4 | ) | $ | 101.1 | |||
Common
shares outstanding (weighted average in millions):
|
||||||||
Common
shares outstanding for basic earnings per share
|
109.8 | 111.4 | ||||||
Effect
of dilutive stock-based compensation
|
— | 1.0 | ||||||
Common
shares outstanding for diluted earnings per share
|
109.8 | 112.4 | ||||||
Basic
earnings per share:
|
||||||||
Distributed
earnings
|
$ | — | $ | 0.05 | ||||
Undistributed
earnings
|
(0.67 | ) | 0.85 | |||||
Basic
earnings per share
|
$ | (0.67 | ) | $ | 0.90 | |||
Diluted
earnings per share:
|
||||||||
Distributed
earnings
|
$ | — | $ | 0.05 | ||||
Undistributed
earnings
|
(0.67 | ) | 0.85 | |||||
Diluted
earnings per share
|
$ | (0.67 | ) | $ | 0.90 | |||
Potentially
issuable common shares (in millions) excluded from
earnings
per share calculation due to anti-dilutive effect
|
1.1 | — | ||||||
NOTE
3 – Inventories
|
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Finished
and semi-finished
|
$ | 829.7 | $ | 877.1 | ||||
Raw
materials
|
453.0 | 512.1 | ||||||
Total
cost
|
1,282.7 | 1,389.2 | ||||||
Adjustment
to state inventories at LIFO value
|
(756.3 | ) | (822.4 | ) | ||||
Net
inventories
|
$ | 526.4 | $ | 566.8 |
NOTE
4 – Pension and other postretirement
benefits
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Pension Benefits
|
||||||||
Service
cost
|
$ | 1.2 | $ | 2.0 | ||||
Interest
cost
|
52.4 | 53.2 | ||||||
Expected
return on assets
|
(44.6 | ) | (60.4 | ) | ||||
Amortization
of prior service cost
|
1.0 | 1.1 | ||||||
Amortization
of loss
|
4.5 | 4.3 | ||||||
Net
periodic benefit cost
|
$ | 14.5 | $ | 0.2 | ||||
Other Postretirement
Benefits
|
||||||||
Service
cost
|
$ | 1.0 | $ | 1.1 | ||||
Interest
cost
|
13.8 | 24.0 | ||||||
Amortization
of prior service credit
|
(19.7 | ) | (14.3 | ) | ||||
Amortization
of loss
|
(0.9 | ) | 0.6 | |||||
Net
periodic benefit cost (income)
|
$ | (5.8 | ) | $ | 11.4 |
NOTE
5 – Share-Based Compensation
|
Three
Months Ended
|
|||
March
31,
|
|||
2009
|
2008
|
||
Expected
volatility
|
81.1%
– 85.0%
|
53.9%
– 56.5%
|
|
Weighted-average
volatility
|
82.40%
|
55.47%
|
|
Expected
term (in years)
|
2.8
– 6.3
|
2.9
– 7.3
|
|
Risk-free
interest rate
|
1.05%
– 1.84%
|
2.44%
– 3.22%
|
|
Dividend
yield
|
2.17%
|
0.55%
|
Stock Options
|
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining Contractual
Life
|
Aggregate
Intrinsic
Value
|
|||||||||
Outstanding
at December 31, 2008
|
751,313 | $ | 17.12 | ||||||||||
Granted
|
366,366 | 9.16 | |||||||||||
Exercised
|
(2,750 | ) | 7.89 | ||||||||||
Cancelled
|
(14,876 | ) | 20.03 | ||||||||||
Outstanding
at March 31, 2009
|
1,100,053 | $ | 14.45 |
7.8
yrs
|
$ | 0.2 | |||||||
Expected
to vest at March 31, 2009
|
493,029 | $ | 14.39 |
9.4
yrs
|
— | ||||||||
Exercisable
at March 31, 2009
|
581,075 | $ | 14.51 |
6.3
yrs
|
$ | 0.2 |
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||||
Range
of Exercise Prices
|
Outstanding
|
Weighted
Average
Remaining
Contractual
Life
|
Weighted
Average
Exercise
Price
|
Exercisable
|
Weighted
Average
Exercise
Price
|
|||||||||||||||||||
$ | 3.05 |
to
|
$ | 9.19 | 255,381 |
5.9
yrs.
|
$ | 7.31 | 234,131 | $ | 7.23 | |||||||||||||
$ | 9.20 |
to
|
$ | 13.64 | 351,684 |
9.6
yrs.
|
9.28 | 9,034 | 11.53 | |||||||||||||||
$ | 13.65 |
to
|
$ | 16.65 | 112,235 |
6.5
yrs.
|
14.77 | 111,168 | 14.77 | |||||||||||||||
$ | 16.66 |
to
|
$ | 18.07 | 244,753 |
7.2
yrs.
|
16.87 | 167,333 | 16.92 | |||||||||||||||
$ | 18.08 |
to
|
$ | 68.47 | 136,000 |
8.7
yrs.
|
36.61 | 59,409 | 36.39 |
Restricted Stock Awards
|
Shares
|
Weighted
Average
Grant
Date
Fair
Value
|
||||||
Outstanding
at December 31, 2008
|
598,508 | $ | 17.64 | |||||
Granted
|
418,659 | 9.17 | ||||||
Vested
|
(240,229 | ) | 16.76 | |||||
Cancelled
|
(24,140 | ) | 15.77 | |||||
Outstanding
at March 31, 2009
|
752,798 | $ | 13.26 |
NOTE
6 – Long-term Debt
|
NOTE
7 – Income Taxes
|
NOTE
8 – Comprehensive Income (Loss)
|
Three
Months Ended
|
||||||||
March
31,
|
||||||||
2009
|
2008
|
|||||||
Net
income (loss)
|
$ | (73.4 | ) | $ | 101.1 | |||
Other
comprehensive income (loss), net of tax:
|
||||||||
Foreign
currency translation gain (loss)
|
(1.4 | ) | 0.5 | |||||
Derivative
instrument hedges, mark to market:
|
||||||||
Gain/(loss)
arising in period
|
(21.6 | ) | 20.2 | |||||
Reclass
of (gain)/loss included in net income
|
4.2 | 0.8 | ||||||
Unrealized
holding loss on securities
|
(1.4 | ) | (0.7 | ) | ||||
Pension
and other postretirement benefit adjustment
|
(9.0 | ) | 169.4 | |||||
Comprehensive
income (loss)
|
$ | (102.6 | ) | $ | 291.3 |
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Foreign
currency translation
|
$ | 1.9 | $ | 3.3 | ||||
Derivative
instrument hedges
|
(46.4 | ) | (29.0 | ) | ||||
Unrealized
loss on investments
|
(5.3 | ) | (3.9 | ) | ||||
Employee
benefit liability
|
180.2 | 189.2 | ||||||
Accumulated
other comprehensive income
|
$ | 130.4 | $ | 159.6 |
NOTE
9 – Environmental and Legal
Contingencies
|
Years
Ended December 31,
|
||||||||||||
2008
|
2007
|
2006
|
||||||||||
Environmental-related
capital investments
|
$ | 1.8 | $ | 2.4 | $ | 9.6 | ||||||
Environmental
compliance costs
|
126.5 | 122.8 | 125.5 |
2008
|
2007
|
|||||||
New
Claims Filed
|
41 | 71 | ||||||
Claims
Disposed Of
|
39 | 138 | ||||||
Total
Amount Paid in Settlements
|
$ | 0.7 | $ | 0.4 |
NOTE
10 – Fair Value Measurements
|
Level
1
|
Level
2
|
Total
|
||||||||||
Assets:
|
||||||||||||
Available
for sale investments–
|
||||||||||||
Marketable
equity securities (1)
|
$ | 20.9 | $ | — | $ | 20.9 | ||||||
Commodity
hedge contracts (2)
|
— | 0.2 | 0.2 | |||||||||
Assets
measured at fair value at March 31, 2009
|
$ | 20.9 | $ | 0.2 | $ | 21.1 | ||||||
Liabilities
(3):
|
||||||||||||
Foreign
exchange contracts
|
$ | — | $ | 0.6 | $ | 0.6 | ||||||
Commodity
hedge contracts
|
— | 68.7 | 68.7 | |||||||||
Liabilities
measured at fair value at March 31, 2009
|
$ | — | $ | 69.3 | $ | 69.3 |
(1)
Held in a trust and included in Other investments on the Condensed
Consolidated Balance Sheet.
|
(2)
Included in Accounts receivable, net on the Condensed Consolidated Balance
Sheet.
|
(3)
Included in Accrued liabilities and Other noncurrent liabilities on the
Condensed Consolidated Balance
Sheet.
|
NOTE
11 – Investments in an Unrealized Loss
Position
|
INVESTMENTS
IN AN UNREALIZED LOSS POSITION
|
||||||||||||||||||||||||
At
March 31, 2009
|
||||||||||||||||||||||||
Loss
Position
|
Loss
Position
|
Loss
Position
|
||||||||||||||||||||||
Less
Than 12 Months
|
Greater
Than 12 Months
|
Total
|
||||||||||||||||||||||
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
|||||||||||||||||||
Value
|
Loss
|
Value
|
Loss
|
Value
|
Loss
|
|||||||||||||||||||
Investment
|
||||||||||||||||||||||||
Marketable
Equity Securities
|
$ | 8.1 | $ | 4.3 | $ | 5.7 | $ | 4.2 | $ | 13.8 | $ | 8.5 | ||||||||||||
NOTE
12 – Variable Interest Entity
|
NOTE
13 –Disclosures About Derivative Instruments and Hedging
Activities
|
Commodity
|
Amount
|
|
Nickel
|
1,197,321
lbs
|
|
Aluminum
|
1,309,000
lbs
|
|
Zinc
|
4,475,000
lbs
|
|
Natural
Gas
|
17,250,000
MMBTU’s
|
|
Fair Value
of Derivative Instruments in the Condensed Consolidated Balance
Sheets
|
|||||||||
as
of March 31, 2009
|
|||||||||
Balance Sheet Location
|
Asset
Fair
Value
|
Liability
Fair
Value
|
|||||||
Derivatives designated as hedging
instruments
|
|||||||||
Commodity
contracts
|
Accrued
liabilities
|
$ | — | $ | 57.8 | ||||
Commodity
contracts
|
Other
non-current liabilities
|
— | 9.5 | ||||||
Total
derivatives designated as hedging instruments
|
$ | — | $ | 67.3 | |||||
Derivatives not designated as hedging
instruments
|
|||||||||
Foreign
exchange contracts
|
Accrued
liabilities
|
$ | 0.6 | ||||||
Commodity
contracts
|
Other
current assets
|
$ | 0.2 | — | |||||
Commodity
contracts
|
Accrued
liabilities
|
— | 1.3 | ||||||
Commodity
contracts
|
Other
non-current liabilities
|
— | 0.1 | ||||||
Total
derivatives not designated as hedging instruments
|
$ | 0.2 | $ | 2.0 | |||||
Total
derivatives
|
$ | 0.2 | $ | 69.3 | |||||
Table
reflects derivative classification under FAS 133
|
The
Effect of Derivative Instruments on the Condensed Consolidated Statement
of Operations
|
||||
for
the three months ended March 31, 2009
|
||||
DERIVATIVES IN FAS 133 CASH FLOW
HEDGING RELATIONSHIPS:
|
||||
Commodity
Contracts
|
Gain (Loss)
|
|||
Amount recognized in
OCI
|
$ | (21.6 | ) | |
Amount reclassified from
accumulated OCI into cost of products sold (effective
portion)
|
(4.2 | ) | ||
Amount recognized in cost of
products sold (ineffective portion and amount excluded
from
effectiveness
testing)
|
(0.2 | ) | ||
DERIVATIVES NOT DESIGNATED AS
HEDGING INSTRUMENTS UNDER FAS 133:
|
||||
Foreign Exchange
Contracts
|
||||
Amount recognized in other income,
net
|
0.8 | |||
Commodity
Contracts
|
||||
Amount recognized in cost of
products sold
|
(0.4 | ) | ||
NOTE
14 – Subsequent
Event
|
NOTE
15 – Reclassifications and
Restatements
|
NOTE
16 – New Accounting Pronouncements
|
NOTE
17 – Supplemental Guarantor
Information
|
Condensed
Statements of Operations
|
||||||||||||||||||||||||
For
the Three Month Ended March 31, 2009
|
||||||||||||||||||||||||
AK
Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
Net
sales
|
$ | — | $ | 823.8 | $ | 32.2 | $ | 90.3 | $ | (24.1 | ) | $ | 922.2 | |||||||||||
Cost
of products sold
|
— | 827.0 | 30.6 | 81.0 | (15.6 | ) | 923.0 | |||||||||||||||||
Selling
and administrative expenses
|
1.1 | 47.6 | 2.5 | 3.9 | (7.3 | ) | 47.8 | |||||||||||||||||
Depreciation
|
— | 49.5 | 1.7 | 0.1 | — | 51.3 | ||||||||||||||||||
Total
operating costs
|
1.1 | 924.1 | 34.8 | 85.0 | (22.9 | ) | 1,022.1 | |||||||||||||||||
Operating
profit (loss)
|
(1.1 | ) | (100.3 | ) | (2.6 | ) | 5.3 | (1.2 | ) | (99.9 | ) | |||||||||||||
Interest
expense
|
— | 10.2 | — | — | — | 10.2 | ||||||||||||||||||
Other
income (expense)
|
— | 1.2 | — | 1.1 | — | 2.3 | ||||||||||||||||||
Income
(loss) before income taxes
|
(1.1 | ) | (109.3 | ) | (2.6 | ) | 6.4 | (1.2 | ) | (107.8 | ) | |||||||||||||
Income
tax provision (benefit)
|
(0.4 | ) | (35.3 | ) | (0.9 | ) | 2.5 | (0.1 | ) | (34.2 | ) | |||||||||||||
Income
(loss) from continuing operations
|
(0.7 | ) | (74.0 | ) | (1.7 | ) | 3.9 | (1.1 | ) | (73.6 | ) | |||||||||||||
Less:
income (loss) attributable to noncontrolling interests
|
— | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Income
(loss) attributable to AK Steel Holding Corporation
|
(0.7 | ) | (74.0 | ) | (1.7 | ) | 4.1 | (1.1 | ) | (73.4 | ) | |||||||||||||
Equity
in net income of subsidiaries
|
(72.7 | ) | 1.3 | — | — | 71.4 | — | |||||||||||||||||
Net
income (loss) attributable to AK Steel Holding Corporation
|
$ | (73.4 | ) | $ | (72.7 | ) | $ | (1.7 | ) | $ | 4.1 | $ | 70.3 | $ | (73.4 | ) | ||||||||
Condensed
Statements of Operations
|
||||||||||||||||||||||||
For
the Three Months Ended March 31, 2008
|
||||||||||||||||||||||||
AK
Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
Net
sales
|
$ | — | $ | 1,658.5 | $ | 57.4 | $ | 127.9 | $ | (52.4 | ) | $ | 1,791.4 | |||||||||||
Cost
of products sold
|
— | 1,408.1 | 49.9 | 103.5 | (48.3 | ) | 1,513.2 | |||||||||||||||||
Selling
and administrative expenses
|
0.8 | 61.8 | 3.1 | 4.3 | (13.5 | ) | 56.5 | |||||||||||||||||
Depreciation
|
— | 50.2 | 1.7 | 0.1 | — | 52.0 | ||||||||||||||||||
Total
operating costs
|
0.8 | 1,520.1 | 54.7 | 107.9 | (61.8 | ) | 1,621.7 | |||||||||||||||||
Operating
profit (loss)
|
(0.8 | ) | 138.4 | 2.7 | 20.0 | 9.4 | 169.7 | |||||||||||||||||
Interest
expense
|
— | 11.7 | — | — | — | 11.7 | ||||||||||||||||||
Other
income (expense)
|
— | (4.0 | ) | 3.7 | 13.0 | (7.3 | ) | 5.4 | ||||||||||||||||
Income
(loss) before income taxes
|
(0.8 | ) | 122.7 | 6.4 | 33.0 | 2.1 | 163.4 | |||||||||||||||||
Income
tax provision (benefit)
|
(0.3 | ) | 52.2 | 2.3 | 10.9 | (2.7 | ) | 62.4 | ||||||||||||||||
Income
(loss) from continuing operations
|
(0.5 | ) | 70.5 | 4.1 | 22.1 | 4.8 | 101.0 | |||||||||||||||||
Less:
income (loss) attributable to noncontrolling interests
|
— | — | — | 0.1 | — | 0.1 | ||||||||||||||||||
Income
(loss) attributable to AK Steel Holding Corporation
|
(0.5 | ) | 70.5 | 4.1 | 22.2 | 4.8 | 101.1 | |||||||||||||||||
Equity
in net income of subsidiaries
|
101.6 | 31.1 | — | — | (132.7 | ) | — | |||||||||||||||||
Net
income (loss) attributable to AK Steel Holding Corporation
|
$ | 101.1 | $ | 101.6 | $ | 4.1 | $ | 22.2 | $ | (127.9 | ) | $ | 101.1 | |||||||||||
Condensed
Balance Sheets
|
||||||||||||||||||||||||
As
of March 31, 2009
|
||||||||||||||||||||||||
AK Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current
Assets:
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | — | $ | 446.4 | $ | — | $ | 15.6 | $ | — | $ | 462.0 | ||||||||||||
Accounts
receivable, net
|
— | 310.5 | 16.9 | 42.7 | (0.4 | ) | 369.7 | |||||||||||||||||
Inventories,
net
|
— | 453.1 | 17.1 | 66.3 | (10.1 | ) | 526.4 | |||||||||||||||||
Deferred
tax asset
|
— | 470.7 | — | — | — | 470.7 | ||||||||||||||||||
Other
current assets
|
0.2 | 62.2 | 0.5 | 0.7 | — | 63.6 | ||||||||||||||||||
Total
Current Assets
|
0.2 | 1,742.9 | 34.5 | 125.3 | (10.5 | ) | 1,892.4 | |||||||||||||||||
Property,
Plant and Equipment
|
— | 5,161.6 | 89.6 | 72.9 | — | 5,324.1 | ||||||||||||||||||
Less
accumulated depreciation
|
— | (3,215.6 | ) | (42.7 | ) | (9.3 | ) | — | (3,267.6 | ) | ||||||||||||||
Property,
Plant and Equipment, Net
|
— | 1,946.0 | 46.9 | 63.6 | — | 2,056.5 | ||||||||||||||||||
Other
Assets:
|
||||||||||||||||||||||||
Investment
in AFSG Holdings, Inc.
|
— | — | 55.6 | — | — | 55.6 | ||||||||||||||||||
Investment
in affiliates
|
(1,228.2 | ) | 1,228.2 | 40.1 | 969.8 | (1,009.9 | ) | — | ||||||||||||||||
Inter-company
accounts
|
2,079.1 | (3,013.8 | ) | (31.0 | ) | (273.6 | ) | 1,239.3 | — | |||||||||||||||
Other
investments
|
— | 25.1 | — | 21.4 | — | 46.5 | ||||||||||||||||||
Goodwill
|
— | — | 32.9 | 4.2 | — | 37.1 | ||||||||||||||||||
Other
intangible assets
|
— | — | 0.3 | — | — | 0.3 | ||||||||||||||||||
Deferred
tax asset
|
— | 350.8 | — | — | — | 350.8 | ||||||||||||||||||
Other
non-current assets
|
— | 14.2 | — | 0.2 | — | 14.4 | ||||||||||||||||||
TOTAL
ASSETS
|
$ | 851.1 | $ | 2,293.4 | $ | 179.3 | $ | 910.9 | $ | 218.9 | $ | 4,453.6 | ||||||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current
Liabilities:
|
||||||||||||||||||||||||
Accounts
payable
|
$ | — | $ | 349.7 | $ | 2.6 | $ | 9.1 | $ | (0.4 | ) | $ | 361.0 | |||||||||||
Accrued
liabilities
|
— | 228.4 | 1.9 | 5.1 | — | 235.4 | ||||||||||||||||||
Current
portion of long-term debt
|
— | 0.7 | — | — | — | 0.7 | ||||||||||||||||||
Current
portion of pension and other postretirement benefit
obligations
|
— | 149.7 | — | — | — | 149.7 | ||||||||||||||||||
Total
Current Liabilities
|
— | 728.5 | 4.5 | 14.2 | (0.4 | ) | 746.8 | |||||||||||||||||
Non-current
Liabilities:
|
||||||||||||||||||||||||
Long-term
debt
|
— | 609.4 | — | — | — | 609.4 | ||||||||||||||||||
Pension
and other postretirement benefit obligations
|
— | 2,027.9 | 0.5 | — | — | 2,028.4 | ||||||||||||||||||
Other
non-current liabilities
|
— | 155.8 | — | 57.2 | 2.4 | 215.4 | ||||||||||||||||||
Total
Non-current Liabilities
|
— | 2,793.1 | 0.5 | 57.2 | 2.4 | 2,853.2 | ||||||||||||||||||
TOTAL
LIABILITIES
|
— | 3,521.6 | 5.0 | 71.4 | 2.0 | 3,600.0 | ||||||||||||||||||
TOTAL
AK STEEL HOLDING CORPORATION STOCKHOLDERS’ EQUITY
(DEFICIT)
|
851.1 | (1,228.2 | ) | 174.3 | 837.0 | 216.9 | 851.1 | |||||||||||||||||
Noncontrolling
interest
|
— | — | — | 2.5 | — | 2.5 | ||||||||||||||||||
TOTAL
STOCKHOLDERS’ EQUITY (DEFICIT)
|
851.1 | (1,228.2 | ) | 174.3 | 839.5 | 216.9 | 853.6 | |||||||||||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 851.1 | $ | 2,293.4 | $ | 179.3 | $ | 910.9 | $ | 218.9 | $ | 4,453.6 |
Condensed
Balance Sheets
|
||||||||||||||||||||||||
As
of December 31, 2008
|
||||||||||||||||||||||||
AK Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||
Current
Assets:
|
||||||||||||||||||||||||
Cash
and cash equivalents
|
$ | — | $ | 548.6 | $ | — | $ | 14.1 | $ | — | $ | 562.7 | ||||||||||||
Accounts
receivable, net
|
— | 394.7 | 19.5 | 57.2 | (1.5 | ) | 469.9 | |||||||||||||||||
Inventories,
net
|
— | 481.1 | 18.6 | 71.8 | (4.7 | ) | 566.8 | |||||||||||||||||
Deferred
tax asset
|
— | 333.0 | — | — | — | 333.0 | ||||||||||||||||||
Other
current assets
|
0.1 | 69.4 | 0.3 | 0.6 | — | 70.4 | ||||||||||||||||||
Total
Current Assets
|
0.1 | 1,826.8 | 38.4 | 143.7 | (6.2 | ) | 2,002.8 | |||||||||||||||||
Property,
Plant and Equipment
|
— | 5,179.8 | 89.5 | 12.8 | — | 5,282.1 | ||||||||||||||||||
Less
accumulated depreciation
|
— | (3,170.6 | ) | (41.0 | ) | (9.2 | ) | — | (3,220.8 | ) | ||||||||||||||
Property,
Plant and Equipment, Net
|
— | 2,009.2 | 48.5 | 3.6 | — | 2,061.3 | ||||||||||||||||||
Other
Assets:
|
||||||||||||||||||||||||
Investment
in AFSG Holdings, Inc.
|
— | — | 55.6 | — | — | 55.6 | ||||||||||||||||||
Investments
in affiliates
|
(1,074.2 | ) | 1,074.2 | 40.1 | 960.9 | (1,001.0 | ) | — | ||||||||||||||||
Inter-company
accounts
|
2,042.1 | (2,800.2 | ) | (33.5 | ) | (281.9 | ) | 1,073.5 | — | |||||||||||||||
Other
investments
|
— | 27.3 | — | 23.1 | — | 50.4 | ||||||||||||||||||
Goodwill
|
— | — | 32.8 | 4.3 | — | 37.1 | ||||||||||||||||||
Other
intangible assets
|
— | — | 0.3 | — | — | 0.3 | ||||||||||||||||||
Deferred
tax asset
|
— | 459.1 | — | — | — | 459.1 | ||||||||||||||||||
Other
non-current assets
|
— | 15.2 | — | 0.2 | — | 15.4 | ||||||||||||||||||
TOTAL
ASSETS
|
$ | 968.0 | $ | 2,611.6 | $ | 182.2 | $ | 853.9 | $ | 66.3 | $ | 4,682.0 | ||||||||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY (DEFICIT)
|
||||||||||||||||||||||||
Current
Liabilities:
|
||||||||||||||||||||||||
Accounts
payable
|
$ | — | $ | 337.7 | $ | 2.1 | $ | 9.8 | $ | (1.5 | ) | $ | 348.1 | |||||||||||
Accrued
liabilities
|
— | 221.3 | 2.8 | 8.9 | — | 233.0 | ||||||||||||||||||
Current
portion of long-term debt
|
— | 0.7 | — | — | — | 0.7 | ||||||||||||||||||
Current
portion of pension and other postretirement benefit
obligations
|
— | 152.4 | — | — | — | 152.4 | ||||||||||||||||||
Total
Current Liabilities
|
— | 712.1 | 4.9 | 18.7 | (1.5 | ) | 734.2 | |||||||||||||||||
Non-current
Liabilities:
|
||||||||||||||||||||||||
Long-term
debt
|
— | 632.6 | — | — | — | 632.6 | ||||||||||||||||||
Pension
and other postretirement benefit obligations
|
— | 2,143.7 | 0.5 | — | — | 2,144.2 | ||||||||||||||||||
Other
non-current liabilities
|
— | 197.4 | — | 0.3 | 2.6 | 200.3 | ||||||||||||||||||
Total
Non-current Liabilities
|
— | 2,973.7 | 0.5 | 0.3 | 2.6 | 2,977.1 | ||||||||||||||||||
TOTAL
LIABILITIES
|
— | 3,685.8 | 5.4 | 19.0 | 1.1 | 3,711.3 | ||||||||||||||||||
TOTAL
AK STEEL HOLDING CORPORATION STOCKHOLDERS’ EQUITY
(DEFICIT)
|
968.0 | (1,074.2 | ) | 176.8 | 832.2 | 65.2 | 968.0 | |||||||||||||||||
Noncontrolling
interest
|
— | — | — | 2.7 | — | 2.7 | ||||||||||||||||||
TOTAL
STOCKHOLDERS’ EQUITY (DEFICIT)
|
968.0 | (1,074.2 | ) | 176.8 | 834.9 | 65.2 | 970.7 | |||||||||||||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 968.0 | $ | 2,611.6 | $ | 182.2 | $ | 853.9 | $ | 66.3 | $ | 4,682.0 |
Condensed
Statements of Cash Flows
|
||||||||||||||||||||||||
For
the Three Months Ended March 31, 2009
|
||||||||||||||||||||||||
AK
Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
Net
cash flows from operating activities
|
$ | (0.6 | ) | $ | (53.9 | ) | $ | 3.5 | $ | 17.9 | $ | 4.1 | $ | (29.0 | ) | |||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||
Capital
investments
|
— | (44.7 | ) | (0.2 | ) | (0.2 | ) | — | (45.1 | ) | ||||||||||||||
Other
items, net
|
— | 0.3 | — | 0.1 | — | 0.4 | ||||||||||||||||||
Net
cash flows from investing activities
|
— | (44.4 | ) | (0.2 | ) | (0.1 | ) | — | (44.7 | ) | ||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||
Principal
payments on long-term debt
|
— | (19.9 | ) | — | — | — | (19.9 | ) | ||||||||||||||||
Purchase
of treasury stock
|
(11.4 | ) | — | — | — | — | (11.4 | ) | ||||||||||||||||
Common
stock dividends paid
|
(5.5 | ) | — | — | — | — | (5.5 | ) | ||||||||||||||||
Inter-company
activity
|
17.4 | 5.0 | (3.4 | ) | (14.9 | ) | (4.1 | ) | — | |||||||||||||||
Advances
from minority interest owner
|
— | 11.2 | — | — | — | 11.2 | ||||||||||||||||||
Other
items, net
|
0.1 | (0.2 | ) | 0.1 | (1.4 | ) | — | (1.4 | ) | |||||||||||||||
Net
cash flows from financing activities
|
0.6 | (3.9 | ) | (3.3 | ) | (16.3 | ) | (4.1 | ) | (27.0 | ) | |||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
— | (102.2 | ) | — | 1.5 | — | (100.7 | ) | ||||||||||||||||
Cash
and equivalents, beginning of period
|
— | 548.6 | — | 14.1 | — | 562.7 | ||||||||||||||||||
Cash
and equivalents, end of period
|
$ | — | $ | 446.4 | $ | — | $ | 15.6 | $ | — | $ | 462.0 |
Condensed
Statements of Cash Flows
|
||||||||||||||||||||||||
For
the Three Months Ended March 31, 2008
|
||||||||||||||||||||||||
AK
Holding
|
AK
Steel
|
Guarantor
Subsidiaries
|
Other
|
Eliminations
|
Consolidated
Company
|
|||||||||||||||||||
Net
cash flows from operating activities
|
$ | (0.4 | ) | $ | (404.6 | ) | $ | 0.9 | $ | (4.0 | ) | $ | 7.9 | $ | (400.2 | ) | ||||||||
Cash
flows from investing activities:
|
||||||||||||||||||||||||
Capital
investments
|
— | (35.7 | ) | (0.8 | ) | (0.1 | ) | — | (36.6 | ) | ||||||||||||||
Other
items, net
|
— | 0.1 | 0.1 | (0.1 | ) | — | 0.1 | |||||||||||||||||
Net
cash flows from investing activities
|
— | (35.6 | ) | (0.7 | ) | (0.2 | ) | — | (36.5 | ) | ||||||||||||||
Cash
flows from financing activities:
|
||||||||||||||||||||||||
Principal
payments on long-term debt
|
— | (0.1 | ) | — | — | — | (0.1 | ) | ||||||||||||||||
Proceeds
from exercise of stock options
|
2.3 | — | — | — | — | 2.3 | ||||||||||||||||||
Purchase
of treasury stock
|
(9.1 | ) | — | — | — | — | (9.1 | ) | ||||||||||||||||
Common
stock dividends paid
|
(5.6 | ) | — | (3.6 | ) | (3.8 | ) | 7.4 | (5.6 | ) | ||||||||||||||
Inter-company
activity
|
12.8 | (4.5 | ) | 3.5 | 3.5 | (15.3 | ) | — | ||||||||||||||||
Tax
benefits from stock-based transactions
|
— | 7.3 | — | — | — | 7.3 | ||||||||||||||||||
Other
items, net
|
— | 0.1 | (0.1 | ) | 0.6 | — | 0.6 | |||||||||||||||||
Net
cash flows from financing activities
|
0.4 | 2.8 | (0.2 | ) | 0.3 | (7.9 | ) | (4.6 | ) | |||||||||||||||
Net
increase (decrease) in cash and cash equivalents
|
— | (437.4 | ) | — | (3.9 | ) | — | (441.3 | ) | |||||||||||||||
Cash
and equivalents, beginning of period
|
— | 699.0 | — | 14.6 | — | 713.6 | ||||||||||||||||||
Cash
and equivalents, end of period
|
$ | — | $ | 261.6 | $ | — | $ | 10.7 | $ | — | $ | 272.3 |
Item
2.
|
Management’s Discussion and Analysis of Financial
Condition and Results of Operations.
|
(dollars
in millions, except per share and per ton
data)
|
For
the Three Months Ended March 31,
|
||||||||||||||||
(tons in
thousands)
|
2009
|
2008
|
||||||||||||||
Stainless
/ electrical
|
159.1 | 20.5 | % | 237.1 | 15.0 | % | ||||||||||
Coated
|
350.4 | 45.0 | % | 706.3 | 44.7 | % | ||||||||||
Cold-rolled
|
144.2 | 18.5 | % | 307.0 | 19.5 | % | ||||||||||
Tubular
|
18.2 | 2.3 | % | 33.4 | 2.1 | % | ||||||||||
Subtotal
value-added shipments
|
671.9 | 86.3 | % | 1,283.8 | 81.3 | % | ||||||||||
Hot-rolled
|
75.5 | 9.7 | % | 237.7 | 15.1 | % | ||||||||||
Secondary
|
31.4 | 4.0 | % | 56.9 | 3.6 | % | ||||||||||
Subtotal
non value-added shipments
|
106.9 | 13.7 | % | 294.6 | 18.7 | % | ||||||||||
Total
shipments
|
778.8 | 100.0 | % | 1,578.4 | 100.0 | % |
●
|
A
minimum interest coverage ratio of at least 2.5 to 1 for the incurrence of
debt. Failure to meet this covenant would not constitute an
event of default. Rather it would limit the amount of
additional debt the Company could incur to $100.0 beyond the borrowing
available under our existing revolving credit facility. At
March 31, 2009, the ratio was approximately 9.6 to 1 and the Company
believes that as a result of continued weak economic conditions, the
interest coverage ratio could be below 2.5 later in
2009. However, other than the impact on borrowing noted above,
noncompliance with this covenant would not materially impact the Company’s
cash or liquidity position. The ratio is calculated by dividing
the interest expense, including capitalized interest and fees on letters
of credit, into EBITDA (defined, essentially, as operating income (i)
before interest, income taxes, depreciation, amortization of intangible
assets and restricted stock, extraordinary items and purchase accounting
and asset distributions, (ii) adjusted for income before income taxes for
discontinued operations, and (iii) reduced for the charges related to
impairment of goodwill special charges, and pension and other
postretirement employee benefit obligation corridor
charges). The corridor charges are amortized over a 10-year
period for this calculation.
|
●
|
A
limitation on “restricted payments,” which consist primarily of dividends
and share repurchases, of $25.0 plus 50% of cumulative net income (or
minus 100% of cumulative net loss) from April 1, 2002. As of
March 31, 2009, the limitation on restricted payments was
$124.7.
|
Item
3.
|
Quantitative and Qualitative Disclosure about Market
Risk.
|
Commodity Derivative
|
10% Decrease
|
25% Decrease
|
||||||
Natural
Gas
|
$ | 8.2 | $ | 20.4 | ||||
Nickel
|
0.5 | 1.3 | ||||||
Zinc
|
0.3 | 0.7 | ||||||
Aluminum
|
0.1 | 0.2 |
Item
4.
|
PART
II.
|
OTHER
INFORMATION
|
(dollars
in millions, except per share and per ton data)
|
|
Item
1.
|
Legal Proceedings.
|
Item
1A.
|
Risk Factors.
|
●
|
Risk of bankruptcy filings by
the Company’s customers. All three of the major
domestic automotive manufacturers, General Motors, Ford and Chrysler, have
publicly acknowledged that they are experiencing extremely challenging
financial conditions. Two of those domestic manufacturers have requested
and received billions of dollars in loans from the federal
government. Each of them stated at that time that, without
additional federal loans, they likely would have to make a bankruptcy
filing. On April 30, 2009, one of them – Chrysler – did file a
petition in bankruptcy. Recent published reports have indicated
that the chances of a bankruptcy filing by General Motors have increased,
and that such a filing potentially could occur by June 1, 2009. The third
manufacturer, while not yet seeking a federal loan, has acknowledged that
a financial failure by either of the other two could start a series of
events that also could lead to its financial failure and a bankruptcy
filing. In addition, in the current depressed business
conditions there is a heightened risk that other customers of the Company
may file a bankruptcy proceeding or go out of business. The
recent bankruptcy filing by Chrysler likely has increased that risk
significantly with respect to at least some of the Company’s customers
which are suppliers to the automotive industry. The Company
thus could be adversely impacted not only by the bankruptcy of Chrysler
and one or more of the other major domestic automotive manufacturers, but
also by the bankruptcies of other customers, particularly those who also
supply the automotive industry. The nature of that impact could
be not only a reduction in future sales, but also a loss associated with
the potential inability to collect all outstanding accounts
receivables. See discussion of Chrysler bankruptcy filing in
Part I, Item 2. That impact could negatively impact the
Company’s financial results and cash flows. The Company cannot
reasonably predict if or when any of its customers in the automotive
industry other than Chrysler will file a bankruptcy
proceeding. In addition, the federal government has announced
an Auto Supplier Support Program to provide financial support to suppliers
to General Motors and Chrysler which could affect the likelihood and/or
impact of such filings. As a consequence, at this time the Company cannot
reliably estimate its financial exposure relating to the risk of
additional bankruptcy filings by one or more of its customers in the
automotive industry. Such bankruptcy filings, however, could
have a negative impact on the Company’s sales, financial results and cash
flow.
|
Item
2.
|
Unregistered Sales of Securities
and Use of Proceeds.
|
ISSUER
PURCHASES OF EQUITY SECURITIES
|
|||||||||||||
Period
|
Total
Number
of
Shares
Purchased
(1)
(2)
|
Average
Price Paid Per
Share
(1) (2)
|
Total
Number of Shares (Units) Purchased as
Part
of
Publicly
Announced Program (2)
|
Approximate
Dollar
Value of
Shares
that May
Yet
be
Purchased
Under
the Plans
or
Programs (2)
|
|||||||||
January
1 through 31, 2009
|
148,903 | $ | 9.37 | — | |||||||||
February
1 through 28, 2009
|
315,000 | $ | 6.49 | 315,000 | |||||||||
March
1 through 31, 2009
|
1,309,934 | $ | 6.08 | 1,309,700 | |||||||||
Total
|
1,773,837 | $ | 6.43 | 1,624,700 |
$125.6
|
(1)
|
During
the quarter, the Company repurchased 149,137 shares of common stock owned
by participants in its restricted stock awards program under the terms of
its Stock Incentive Plan. In order to satisfy the requirement
that an amount be withheld that is sufficient to pay federal, state and
local taxes due upon the vesting of the restricted stock, employees are
permitted to have the Company withhold shares having a fair market value
equal to the tax which could be imposed on the transaction. The
Company repurchases the withheld shares at the quoted average of high and
low prices on the day the shares are
withheld.
|
(2)
|
On
October 21, 2008, the Company announced that its Board of Directors had
authorized the Company to repurchase, from time to time, up to $150.0 of
its outstanding equity securities. This stock repurchase plan
supersedes and replaces a previous stock repurchase plan announced in
2000. There is no expiration date specified in the Board of
Directors’ authorization.
|
Item
6.
|
||
Exhibit
31.1.
|
Section
302 Certification of Chief Executive Officer
|
|
Exhibit
31.2.
|
Section
302 Certification of Chief Financial Officer
|
|
Exhibit
32.1.
|
Section
906 Certification of Chief Executive Officer
|
|
Exhibit
32.2.
|
Section
906 Certification of Chief Financial
Officer
|
AK
STEEL HOLDING CORPORATION
|
||||
(Registrant)
|
||||
Dated:
|
May
5, 2009
|
/s/
Albert
E. Ferrara, Jr.
|
||
Albert
E. Ferrara, Jr.
|
||||
Vice
President, Finance and Chief Financial Officer
|
||||
Dated:
|
May
5, 2009
|
/s/ Roger
K. Newport
|
||
Roger
K. Newport
|
||||
Controller
and Chief Accounting Officer
|
||||