Certain key results for the second quarter and six months ended June 30, 2022 included the following:
Record quarterly net sales of $4.68 billion were up 36.9% from the second
? quarter of 2021. Net sales of $9.17 billion in the six months ended June 30,
2022 were up 46.5% from the same period in 2021.
? Record quarterly average selling price per ton sold of $3,240.
Our gross profit in the second quarter (also a quarterly record) and six months
ended June 30, 2022 increased 38.2% and 41.6%, respectively, from the same
periods in 2021 due to record metals pricing that offset the impact of lower
? gross margins in the 2022 periods. Our gross profit margin for the six months
ended June 30, 2022 declined 110 basis points from the same period in 2021,
mainly due to a record gross profit margin of 33.6% in the first quarter of
2021, which benefited from rapid and significant increases in metals prices and
Record quarterly earnings per share of $9.15 were up 80.1% from the second
? quarter of 2021. Earnings per share of $17.49 in the six months ended June 30,
2022 were up 90.1% from the same period in 2021.
? $193.9 million of share repurchases in the second quarter of 2022 compared to
$24.0 million in the second quarter of 2021.
The following table sets forth certain income statement data for the second quarter and six months ended June 30, 2022 and 2021 (dollars are shown in millions and certain amounts may not calculate due to rounding):
(1) Cost of sales in the six months ended June 30, 2022 included $8.1 million of
non-recurring amortization of inventory step-up to fair value adjustments for
(2) Gross profit, calculated as net sales less cost of sales, and gross profit
margin, calculated as gross profit divided by net sales, are non-GAAP
financial measures as they exclude depreciation and amortization expenses
associated with the corresponding sales. About half of our orders are basic
distribution with no processing services performed. For the remainder of our
sales orders, we perform "first-stage" processing, which is generally not
labor intensive as we are simply cutting the metal to size. Because of this,
the amount of related labor and overhead, including depreciation and
amortization, is not significant and is excluded from our cost of sales.
Therefore, our cost of sales is substantially comprised of the cost of the
material we sell. We use gross profit and gross profit margin as shown above
as measures of operating performance. Gross profit and gross profit margin
are important operating and financial measures, as their fluctuations can
have a significant impact on our earnings. Gross profit and gross profit
margin, as presented, are not necessarily comparable with similarly titled
Second Quarter and Six Months Ended June 30, 2022 Compared to Second Quarter and Six Months Ended June 30, 2021
Tons sold, same-store (six months ended) 2,785.9 2,833.7
Our tons sold and average selling price per ton sold exclude our tons toll processed. Our average selling price per ton sold includes intercompany transactions that are eliminated from our consolidated net sales. Same-store amounts exclude the results of our 2021 acquisitions.
Our major commodity selling prices changed year-over-year as follows:
We generated record gross profit in the second quarter and six months ended June 30, 2022 mainly as a result of record average selling prices per ton sold, strong gross profit margins and increases in tons sold compared to the same periods in 2021.
During the first quarter of 2022, we increased our 2022 capital expenditure budget, including unspent amounts from prior years, to $455 million from $350 million. Our actual capital expenditure spending over the next 12 months is ultimately dependent on market conditions, lead times and availability of property, plant and equipment when the capital project is initiated.
Various industrial revenue bonds had combined outstanding balances of $7.7 million as of June 30, 2022 and December 31, 2021 and have maturities through 2027.
As of June 30, 2022, we had $910.4 million of debt obligations coming due before our $1.5 billion revolving credit facility expires on September 3, 2025.
We were in compliance with all financial maintenance covenants in our Credit Agreement at June 30, 2022.
Goodwill and Other Intangible Assets
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