Delaware (State or other jurisdiction of incorporation) | 333-185443 (Commission File Number) | 27-1539594 (IRS Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
ALERIS CORPORATION | |||
Date: November 6, 2013 | /s/ Scott A. McKinley | ||
By: Scott A. McKinley | |||
Its: Senior Vice President and Controller | |||
Exhibit No. | Description | |
99.1 | Press release dated November 6, 2013. | |
99.2 | November 6, 2013 Management Presentation Materials. |
▪ | Net loss attributable to Aleris Corporation of $7 million and Adjusted EBITDA of $68 million |
▪ | Higher automotive volume in North America and Europe |
▪ | Global aerospace volume impacted by customer destocking |
▪ | Lower building and construction volume in North America |
▪ | Impact of price pressures and tighter scrap spreads continued to impact margins in rolled products |
▪ | SG&A expenses decreased 15 percent driven by cost reduction initiatives |
▪ | Positive steps toward aircraft qualifications at our rolling mill in Zhenjiang, China |
▪ | Major strategic growth projects generating revenue |
▪ | Liquidity of $551 million as of September 30, 2013 |
▪ | General uncertainty driving further destocking in addition to normal seasonal slow down |
▪ | Automotive volume expected to continue to post solid year-over-year improvement |
▪ | Aerospace inventory overhang will continue to negatively impact plate volume |
▪ | Continued pressure on price and scrap spreads in rolled products |
▪ | Continued stabilization and improvements in recycling and specification alloy demand |
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(Dollars in millions, metric tons in thousands) | (unaudited) | ||||||||||||||
Metric tons invoiced | 486 | 493 | 1,481 | 1,510 | |||||||||||
Revenue | $ | 1,073 | $ | 1,081 | $ | 3,311 | $ | 3,392 | |||||||
Commercial margin | $ | 423 | $ | 426 | $ | 1,288 | $ | 1,291 | |||||||
Segment income | $ | 82 | $ | 92 | $ | 253 | $ | 292 | |||||||
Net (loss) income attributable to Aleris Corporation | $ | (7 | ) | $ | 33 | $ | (8 | ) | $ | 114 | |||||
Adjusted EBITDA | $ | 68 | $ | 78 | $ | 210 | $ | 249 |
▪ | tighter scrap spreads and higher costs for purchased slabs were partially offset by improved metal spreads, the combination of which reduced Adjusted EBITDA by approximately $3 million; |
▪ | lower rolling margins for certain North American and European rolled and extruded products reduced Adjusted EBITDA by approximately $3 million; |
▪ | lower overall volume and a weaker mix of products sold decreased Adjusted EBITDA by approximately $3 million; |
▪ | a weaker U.S. dollar reduced Adjusted EBITDA by approximately $3 million; and |
▪ | productivity gains of approximately $12 million, including the benefits of selling, general and administrative cost savings initiatives and personnel reductions, more than offset the impact of inflation. |
▪ | a $16 million increase in interest expense associated with the issuance of $500 million 7 7/8% senior notes in October 2012, increased China Loan Facility borrowings and decreased capitalized interest; |
▪ | an $11 million increase in depreciation expense as many of the Company’s capital investments were recently placed into operation; and |
▪ | a $3 million increase in stock-based compensation expense. |
▪ | an 11 percent decline in volume decreased segment Adjusted EBITDA by $4 million. The decrease in volume was primarily due to lower building and construction demand caused by customer destocking and the impact of a 2012 strike at a competitor, which temporarily increased volume during 2012; |
▪ | tighter scrap spreads and an increased use of primary aluminum due to limited scrap availability reduced segment Adjusted EBITDA by $3 million; |
▪ | continued pricing pressure from common alloy imports negatively impacted segment Adjusted EBITDA by $2 million; and |
▪ | inflation in employee costs, energy, freight and paint, as well as additional costs incurred during the start-up of our wide coating facility in Ashville, Ohio were substantially offset by productivity savings from Aleris Operating System initiatives. |
▪ | higher costs for purchased slabs and hardeners, as well as increased use of primary aluminum due to limited scrap availability, reduced segment Adjusted EBITDA by $3 million; |
▪ | a weaker U.S. dollar reduced segment Adjusted EBITDA by $2 million as the negative impact on the segment’s U.S. dollar-based aerospace and heat exchanger business more than offset the positive impact on the translation of the segment’s results; |
▪ | inflation in employee, freight and energy costs and production issues more than offset productivity savings, reducing segment Adjusted EBITDA by $1 million; and |
▪ | volume was flat, excluding volume associated with the Voerde cast house (which was acquired during the third quarter of 2012), as increased automotive, heat exchanger and transportation demand was offset by lower aerospace, distribution, and building and construction volume. |
▪ | a 2 percent increase in overall volume and an improved mix of buy and sell volume resulted in a $3 million increase in segment Adjusted EBITDA. The increase in volume was primarily driven by improved demand for specification alloys from the North American automotive industry; |
▪ | improved metal spreads increased segment Adjusted EBITDA by $2 million. Scrap purchase prices moderated as more stringent import regulations on scrap sold into China improved scrap flow in North America; and |
▪ | productivity gains related to furnace and scrap optimization initiatives continued to contribute significantly to the segment’s performance, more than offsetting inflation. Productivity savings, net of inflation, improved segment Adjusted EBITDA by $2 million. |
▪ | volume declined 6 percent and reduced segment Adjusted EBITDA by $2 million. The decrease in volume was primarily due to limited scrap availability in our recycling business; |
▪ | improved metal spreads increased segment Adjusted EBITDA by $1 million; and |
▪ | productivity gains offset inflation in employee costs. |
▪ | Revenues of approximately $3.3 billion compared to approximately $3.4 billion for the prior year period. The decrease was attributable to lower aluminum prices, pricing pressures and lower volume, partially offset by an improved mix of products sold, volume associated with the Voerde cast house and a weaker U.S. dollar. |
▪ | Adjusted EBITDA decreased to $210 million from $249 million during the prior year period as a result of tighter scrap and metal spreads, lower rolling margins and lower overall volume. Partially offsetting these items were productivity savings, as well as the benefits of previously implemented cost savings initiatives and selling, general and administrative personnel reductions, which more than offset inflation. |
▪ | Net loss attributable to Aleris Corporation was approximately $8 million, compared to net income of approximately $114 million for the prior year period. The decrease was driven by the factors that drove the decrease in Adjusted EBITDA, as well as increased depreciation, interest, start-up and restructuring expenses, partially offset by a decrease in the provision for taxes. |
▪ | Cash used by operating activities totaled $17 million compared to cash provided by operating activities of $92 million during the prior year period. The decrease was due to the reduction in earnings and the settlement of an income tax audit by a non-U.S. taxing jurisdiction. |
▪ | Capital expenditures decreased to $183 million, from $286 million during the prior year period as many of the Company’s projects have been placed into operation or are near completion. |
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | $ | 1,073.4 | $ | 1,081.0 | $ | 3,311.1 | $ | 3,392.2 | ||||||||
Cost of sales | 992.7 | 960.8 | 3,067.1 | 3,018.4 | ||||||||||||
Gross profit | 80.7 | 120.2 | 244.0 | 373.8 | ||||||||||||
Selling, general and administrative expenses | 56.4 | 66.5 | 176.4 | 195.0 | ||||||||||||
Restructuring charges | 1.0 | 0.6 | 11.4 | 1.1 | ||||||||||||
(Gains) losses on derivative financial instruments | (2.3 | ) | 1.3 | (21.4 | ) | 3.3 | ||||||||||
Other operating expense, net | 0.8 | 0.2 | 0.4 | 1.0 | ||||||||||||
Operating income | 24.8 | 51.6 | 77.2 | 173.4 | ||||||||||||
Interest expense, net | 26.2 | 10.7 | 71.8 | 33.8 | ||||||||||||
Other expense, net | 4.4 | 0.9 | 3.7 | 0.4 | ||||||||||||
(Loss) income before income taxes | (5.8 | ) | 40.0 | 1.7 | 139.2 | |||||||||||
Provision for income taxes | 1.3 | 7.5 | 9.0 | 25.6 | ||||||||||||
Net (loss) income | (7.1 | ) | 32.5 | (7.3 | ) | 113.6 | ||||||||||
Net income (loss) attributable to noncontrolling interest | 0.2 | (0.3 | ) | 0.8 | (0.9 | ) | ||||||||||
Net (loss) income attributable to Aleris Corporation | $ | (7.3 | ) | $ | 32.8 | $ | (8.1 | ) | $ | 114.5 | ||||||
Net (loss) income available to common stockholders | $ | (7.4 | ) | $ | 30.2 | $ | (8.4 | ) | $ | 111.2 | ||||||
Basic (loss) earnings per share | $ | (0.24 | ) | $ | 0.97 | $ | (0.27 | ) | $ | 3.58 | ||||||
Diluted (loss) earnings per share | $ | (0.24 | ) | $ | 0.91 | $ | (0.27 | ) | $ | 3.33 | ||||||
Dividend declared per common share | $ | — | $ | — | $ | 10.00 | $ | — |
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Segment income (loss): | |||||||||||||||
RPNA | $ | 21.5 | $ | 30.3 | $ | 77.6 | $ | 91.2 | |||||||
RPEU | 37.1 | 42.6 | 114.9 | 126.4 | |||||||||||
RPAP | — | — | (0.2 | ) | — | ||||||||||
Extrusions | 4.3 | 5.6 | 11.9 | 16.5 | |||||||||||
RSAA | 15.7 | 9.2 | 39.1 | 40.4 | |||||||||||
RSEU | 3.7 | 4.7 | 10.1 | 17.4 | |||||||||||
Total segment income | 82.3 | 92.4 | 253.4 | 291.9 | |||||||||||
Depreciation and amortization | (31.4 | ) | (20.0 | ) | (93.3 | ) | (59.2 | ) | |||||||
Corporate general and administrative expenses, excluding depreciation, amortization, start-up expenses and other expenses | (14.8 | ) | (12.9 | ) | (36.1 | ) | (42.7 | ) | |||||||
Restructuring charges | (1.0 | ) | (0.6 | ) | (11.4 | ) | (1.1 | ) | |||||||
Interest expense, net | (26.2 | ) | (10.7 | ) | (71.8 | ) | (33.8 | ) | |||||||
Unallocated (losses) gains on derivative financial instruments | (3.2 | ) | (0.7 | ) | (3.0 | ) | 2.8 | ||||||||
Unallocated currency exchange (losses) gains | (2.7 | ) | 0.7 | (2.7 | ) | (0.2 | ) | ||||||||
Start-up expenses | (7.6 | ) | (7.9 | ) | (31.0 | ) | (16.9 | ) | |||||||
Other expense, net | (1.2 | ) | (0.3 | ) | (2.4 | ) | (1.6 | ) | |||||||
(Loss) income before income taxes | $ | (5.8 | ) | $ | 40.0 | $ | 1.7 | $ | 139.2 | ||||||
For the three months ended | For the nine months ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Invoiced metric tons: | |||||||||||||||
RPNA | 91.2 | 102.2 | 286.7 | 304.8 | |||||||||||
RPEU (1) | 84.6 | 78.5 | 264.1 | 222.8 | |||||||||||
RPAP | 1.9 | — | 3.1 | — | |||||||||||
Extrusions | 17.4 | 16.8 | 53.2 | 53.4 | |||||||||||
RSAA | 216.1 | 211.1 | 648.0 | 662.6 | |||||||||||
RSEU | 90.0 | 95.5 | 278.7 | 295.9 | |||||||||||
Intersegment shipments | (15.4 | ) | (10.9 | ) | (52.8 | ) | (29.8 | ) | |||||||
Total invoiced metric tons | 485.7 | 493.2 | 1,481.0 | 1,509.7 | |||||||||||
(1) Excluding shipments from our Voerde cast house and to the Zhenjiang rolling mill, metric tons were 72.7 and 71.9 for the three months ended September 30, 2013 and 2012, respectively, and 225.5 and 216.2 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||
Revenues: | |||||||||||||||
RPNA | $ | 293.6 | $ | 328.8 | $ | 931.1 | $ | 1,003.3 | |||||||
RPEU | 356.2 | 330.6 | 1,104.1 | 1,008.7 | |||||||||||
RPAP | 7.9 | — | 13.7 | — | |||||||||||
Extrusions | 90.1 | 89.1 | 273.1 | 276.7 | |||||||||||
RSAA | 232.5 | 219.1 | 705.5 | 732.4 | |||||||||||
RSEU | 134.6 | 142.8 | 429.8 | 456.8 | |||||||||||
Intersegment revenues | (41.5 | ) | (29.4 | ) | (146.2 | ) | (85.7 | ) | |||||||
Total revenues | $ | 1,073.4 | $ | 1,081.0 | $ | 3,311.1 | $ | 3,392.2 | |||||||
Segment commercial margin: | |||||||||||||||
RPNA | $ | 111.5 | $ | 123.6 | $ | 351.5 | $ | 368.1 | |||||||
RPEU | 150.0 | 148.7 | 460.0 | 434.4 | |||||||||||
RPAP | — | — | (0.2 | ) | — | ||||||||||
Extrusions | 41.3 | 39.9 | 123.2 | 121.8 | |||||||||||
RSAA | 75.9 | 69.7 | 217.6 | 223.3 | |||||||||||
RSEU | 44.6 | 44.2 | 136.2 | 142.1 | |||||||||||
Total segment commercial margin | $ | 423.3 | $ | 426.1 | $ | 1,288.3 | $ | 1,289.7 | |||||||
Segment commercial margin per metric ton: | |||||||||||||||
RPNA | $ | 1,222.5 | 1,209.6 | 1,226.1 | 1,207.7 | ||||||||||
RPEU | 1,773.1 | 1,894.4 | 1,741.5 | 1,950.2 | |||||||||||
RPAP | * | — | * | — | |||||||||||
Extrusions | 2,369.9 | 2,371.9 | 2,313.6 | 2,280.4 | |||||||||||
RSAA | 351.5 | 330.0 | 335.7 | 336.9 | |||||||||||
RSEU | 495.1 | 463.2 | 488.6 | 480.2 | |||||||||||
Segment Adjusted EBITDA: | |||||||||||||||
RPNA | $ | 20.4 | $ | 29.7 | $ | 74.4 | $ | 88.2 | |||||||
RPEU | 33.1 | 39.8 | 101.3 | 119.3 | |||||||||||
RPAP | — | — | (0.2 | ) | — | ||||||||||
Extrusions | 4.3 | 4.1 | 10.6 | 13.8 | |||||||||||
RSAA | 15.7 | 9.2 | 39.1 | 40.4 | |||||||||||
RSEU | 3.7 | 4.7 | 10.1 | 17.4 | |||||||||||
Corporate | (9.6 | ) | (9.1 | ) | (25.2 | ) | (30.5 | ) | |||||||
Total Adjusted EBITDA | $ | 67.6 | $ | 78.4 | $ | 210.1 | $ | 248.6 | |||||||
Segment Adjusted EBITDA per metric ton: | |||||||||||||||
RPNA | $ | 223.4 | $ | 290.7 | $ | 259.5 | $ | 289.3 | |||||||
RPEU (2) | 391.6 | 507.4 | 383.5 | 535.4 | |||||||||||
RPAP | * | — | * | — | |||||||||||
Extrusions | 248.7 | 243.7 | 199.0 | 257.8 | |||||||||||
RSAA | 72.8 | 43.4 | 60.4 | 61.0 | |||||||||||
RSEU | 41.2 | 49.2 | 36.2 | 58.8 | |||||||||||
Aleris Corporation | 139.2 | 159.0 | 141.9 | 164.6 | |||||||||||
(2) Excluding shipments from our Voerde cast house and to the Zhenjiang rolling mill, Adjusted EBITDA per metric ton was $455.6 and $554.1 for the three months ended September 30, 2013 and 2012, respectively, and $449.1 and $551.7 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||
* Result is not meaningful. |
ASSETS | September 30, 2013 | December 31, 2012 | ||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 71.3 | $ | 592.9 | ||||
Accounts receivable (net of allowances of $11.7 and $8.1 at September 30, 2013 and December 31, 2012, respectively) | 456.7 | 384.0 | ||||||
Inventories | 724.3 | 683.4 | ||||||
Deferred income taxes | 12.9 | 12.9 | ||||||
Prepaid expenses and other current assets | 25.4 | 26.3 | ||||||
Total Current Assets | 1,290.6 | 1,699.5 | ||||||
Property, plant and equipment, net | 1,128.4 | 1,077.0 | ||||||
Intangible assets, net | 44.0 | 45.6 | ||||||
Deferred income taxes | 36.8 | 36.8 | ||||||
Other long-term assets | 66.8 | 59.3 | ||||||
Total Assets | $ | 2,566.6 | $ | 2,918.2 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities | ||||||||
Accounts payable | $ | 359.5 | $ | 341.2 | ||||
Accrued liabilities | 217.3 | 302.4 | ||||||
Deferred income taxes | 12.0 | 12.0 | ||||||
Current portion of long-term debt | 12.9 | 9.0 | ||||||
Total Current Liabilities | 601.7 | 664.6 | ||||||
Long-term debt | 1,225.4 | 1,218.9 | ||||||
Deferred income taxes | 9.9 | 8.8 | ||||||
Accrued pension benefits | 255.3 | 258.2 | ||||||
Accrued postretirement benefits | 49.8 | 52.0 | ||||||
Other long-term liabilities | 75.0 | 75.9 | ||||||
Total Long-Term Liabilities | 1,615.4 | 1,613.8 | ||||||
Redeemable noncontrolling interest | 5.6 | 5.7 | ||||||
Stockholders’ Equity | ||||||||
Common stock; par value $.01; 45,000,000 shares authorized and 31,216,263 and 31,097,272 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 0.3 | 0.3 | ||||||
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued | — | — | ||||||
Additional paid-in capital | 399.1 | 573.9 | ||||||
Retained (deficit) earnings | (18.5 | ) | 122.1 | |||||
Accumulated other comprehensive loss | (37.4 | ) | (62.4 | ) | ||||
Total Aleris Corporation Equity | 343.5 | 633.9 | ||||||
Noncontrolling interest | 0.4 | 0.2 | ||||||
Total Equity | 343.9 | 634.1 | ||||||
Total Liabilities and Equity | $ | 2,566.6 | $ | 2,918.2 |
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Operating activities | ||||||||||||||||
Net (loss) income | $ | (7.1 | ) | $ | 32.5 | $ | (7.3 | ) | $ | 113.6 | ||||||
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities: | ||||||||||||||||
Depreciation and amortization | 31.4 | 20.0 | 93.3 | 59.2 | ||||||||||||
(Benefit from) provision for deferred income taxes | (0.8 | ) | 1.3 | 1.1 | 8.3 | |||||||||||
Stock-based compensation expense | 5.8 | 2.8 | 11.2 | 8.1 | ||||||||||||
Unrealized losses (gains) on derivative financial instruments | 3.2 | 0.5 | 2.9 | (3.2 | ) | |||||||||||
Currency exchange losses (gains) on debt | 2.8 | (0.4 | ) | 2.4 | 0.5 | |||||||||||
Amortization of debt issuance costs | 1.9 | 1.6 | 5.8 | 4.7 | ||||||||||||
Other | (2.6 | ) | (0.8 | ) | (3.2 | ) | (1.1 | ) | ||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Change in accounts receivable | 44.0 | 0.2 | (68.1 | ) | (97.4 | ) | ||||||||||
Change in inventories | (7.6 | ) | 11.3 | (31.9 | ) | (41.5 | ) | |||||||||
Change in other assets | 2.1 | (6.0 | ) | (12.9 | ) | (7.7 | ) | |||||||||
Change in accounts payable | (24.8 | ) | (0.1 | ) | 28.2 | 69.6 | ||||||||||
Change in accrued liabilities | (14.8 | ) | (7.1 | ) | (38.8 | ) | (21.1 | ) | ||||||||
Net cash provided (used) by operating activities | 33.5 | 55.8 | (17.3 | ) | 92.0 | |||||||||||
Investing activities | ||||||||||||||||
Payments for property, plant and equipment | (40.6 | ) | (96.7 | ) | (182.8 | ) | (285.5 | ) | ||||||||
Purchase of a business | — | (8.5 | ) | — | (21.5 | ) | ||||||||||
Other | (0.3 | ) | 0.3 | 1.3 | (0.2 | ) | ||||||||||
Net cash used by investing activities | (40.9 | ) | (104.9 | ) | (181.5 | ) | (307.2 | ) | ||||||||
Financing activities | ||||||||||||||||
Proceeds from the ABL facility | 20.4 | — | 20.4 | — | ||||||||||||
Payments on the ABL facility | (20.4 | ) | — | (20.4 | ) | — | ||||||||||
Proceeds from the Zhenjiang term loans | — | 24.1 | 0.2 | 88.5 | ||||||||||||
Proceeds from the Zhenjiang revolver | — | — | 4.1 | — | ||||||||||||
Net (payments on) proceeds from other long-term debt | (0.9 | ) | (0.2 | ) | (2.8 | ) | 2.0 | |||||||||
Redemption of noncontrolling interest | — | — | (8.9 | ) | — | |||||||||||
Dividend paid | — | — | (313.0 | ) | — | |||||||||||
Other | (1.0 | ) | (0.8 | ) | (3.9 | ) | (1.8 | ) | ||||||||
Net cash (used) provided by financing activities | (1.9 | ) | 23.1 | (324.3 | ) | 88.7 | ||||||||||
Effect of exchange rate differences on cash and cash equivalents | 2.1 | 1.4 | 1.5 | 0.9 | ||||||||||||
Net decrease in cash and cash equivalents | (7.2 | ) | (24.6 | ) | (521.6 | ) | (125.6 | ) | ||||||||
Cash and cash equivalents at beginning of period | 78.5 | 130.4 | 592.9 | 231.4 | ||||||||||||
Cash and cash equivalents at end of period | $ | 71.3 | $ | 105.8 | $ | 71.3 | $ | 105.8 |
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Adjusted EBITDA | $ | 67.6 | $ | 78.4 | $ | 210.1 | $ | 248.6 | ||||||||
Unrealized (losses) gains on derivative financial instruments | (3.2 | ) | (0.5 | ) | (2.9 | ) | 3.2 | |||||||||
Impact of recording assets at fair value through fresh-start and purchase accounting | — | 0.2 | 0.1 | 0.8 | ||||||||||||
Restructuring charges | (1.0 | ) | (0.6 | ) | (11.4 | ) | (1.1 | ) | ||||||||
Unallocated currency exchange (losses) gains on debt | (1.1 | ) | 1.0 | (1.3 | ) | (0.3 | ) | |||||||||
Stock-based compensation expense | (5.8 | ) | (2.8 | ) | (11.2 | ) | (8.1 | ) | ||||||||
Start-up expenses | (7.6 | ) | (7.9 | ) | (31.0 | ) | (16.9 | ) | ||||||||
Favorable metal price lag | 5.1 | 4.7 | 18.0 | 12.1 | ||||||||||||
Other | (2.4 | ) | (1.5 | ) | (4.4 | ) | (5.2 | ) | ||||||||
EBITDA | 51.6 | 71.0 | 166.0 | 233.1 | ||||||||||||
Interest expense, net | (26.2 | ) | (10.7 | ) | (71.8 | ) | (33.8 | ) | ||||||||
Provision for income taxes | (1.3 | ) | (7.5 | ) | (9.0 | ) | (25.6 | ) | ||||||||
Depreciation and amortization | (31.4 | ) | (20.0 | ) | (93.3 | ) | (59.2 | ) | ||||||||
Net (loss) income attributable to Aleris Corporation | (7.3 | ) | 32.8 | (8.1 | ) | 114.5 | ||||||||||
Net income (loss) attributable to noncontrolling interest | 0.2 | (0.3 | ) | 0.8 | (0.9 | ) | ||||||||||
Net (loss) income | (7.1 | ) | 32.5 | (7.3 | ) | 113.6 | ||||||||||
Depreciation and amortization | 31.4 | 20.0 | 93.3 | 59.2 | ||||||||||||
(Benefit from) provision for deferred income taxes | (0.8 | ) | 1.3 | 1.1 | 8.3 | |||||||||||
Stock-based compensation expense | 5.8 | 2.8 | 11.2 | 8.1 | ||||||||||||
Unrealized losses (gains) on derivative financial instruments | 3.2 | 0.5 | 2.9 | (3.2 | ) | |||||||||||
Currency exchange losses (gains) on debt | 2.8 | (0.4 | ) | 2.4 | 0.5 | |||||||||||
Amortization of debt issuance costs | 1.9 | 1.6 | 5.8 | 4.7 | ||||||||||||
Other | (2.6 | ) | (0.8 | ) | (3.2 | ) | (1.1 | ) | ||||||||
Change in operating assets and liabilities: | ||||||||||||||||
Change in accounts receivable | 44.0 | 0.2 | (68.1 | ) | (97.4 | ) | ||||||||||
Change in inventories | (7.6 | ) | 11.3 | (31.9 | ) | (41.5 | ) | |||||||||
Change in other assets | 2.1 | (6.0 | ) | (12.9 | ) | (7.7 | ) | |||||||||
Change in accounts payable | (24.8 | ) | (0.1 | ) | 28.2 | 69.6 | ||||||||||
Change in accrued liabilities | (14.8 | ) | (7.1 | ) | (38.8 | ) | (21.1 | ) | ||||||||
Net cash provided (used) by operating activities | $ | 33.5 | $ | 55.8 | $ | (17.3 | ) | $ | 92.0 |
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
RPNA | ||||||||||||||||
Segment income | $ | 21.5 | $ | 30.3 | $ | 77.6 | $ | 91.2 | ||||||||
Favorable metal price lag | (1.2 | ) | (0.6 | ) | (3.2 | ) | (3.0 | ) | ||||||||
Segment Adjusted EBITDA (1) | $ | 20.4 | $ | 29.7 | $ | 74.4 | $ | 88.2 | ||||||||
RPEU | ||||||||||||||||
Segment income | $ | 37.1 | $ | 42.6 | $ | 114.9 | $ | 126.4 | ||||||||
Impact of recording amounts at fair value through fresh-start and purchase accounting | — | (0.2 | ) | (0.1 | ) | (0.7 | ) | |||||||||
Favorable metal price lag | (4.0 | ) | (2.6 | ) | (13.5 | ) | (6.4 | ) | ||||||||
Segment Adjusted EBITDA (1) | $ | 33.1 | $ | 39.8 | $ | 101.3 | $ | 119.3 | ||||||||
RPAP | ||||||||||||||||
Segment loss | $ | — | $ | — | $ | (0.2 | ) | $ | — | |||||||
Segment Adjusted EBITDA (2) | — | — | (0.2 | ) | — | |||||||||||
Extrusions | ||||||||||||||||
Segment income | $ | 4.3 | $ | 5.6 | $ | 11.9 | $ | 16.5 | ||||||||
Impact of recording amounts at fair value through fresh-start and purchase accounting | — | — | — | (0.1 | ) | |||||||||||
Favorable metal price lag | — | (1.5 | ) | (1.3 | ) | (2.7 | ) | |||||||||
Segment Adjusted EBITDA (1) | $ | 4.3 | $ | 4.1 | $ | 10.6 | $ | 13.8 | ||||||||
RSAA | ||||||||||||||||
Segment income | $ | 15.7 | $ | 9.2 | $ | 39.1 | $ | 40.4 | ||||||||
Segment Adjusted EBITDA (2) | 15.7 | 9.2 | 39.1 | 40.4 | ||||||||||||
RSEU | ||||||||||||||||
Segment income | $ | 3.7 | $ | 4.7 | $ | 10.1 | $ | 17.4 | ||||||||
Segment Adjusted EBITDA (2) | 3.7 | 4.7 | 10.1 | 17.4 |
For the three months ended | For the nine months ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
RPNA | ||||||||||||||||
Segment revenues | $ | 293.6 | $ | 328.8 | $ | 931.1 | $ | 1,003.3 | ||||||||
Hedged cost of metal | (180.9 | ) | (204.6 | ) | (576.4 | ) | (632.2 | ) | ||||||||
Favorable metal price lag | (1.2 | ) | (0.6 | ) | (3.2 | ) | (3.0 | ) | ||||||||
Segment commercial margin | $ | 111.5 | $ | 123.6 | $ | 351.5 | $ | 368.1 | ||||||||
RPEU | ||||||||||||||||
Segment revenues | $ | 356.2 | $ | 330.6 | $ | 1,104.1 | $ | 1,008.7 | ||||||||
Hedged cost of metal | (202.2 | ) | (179.3 | ) | (630.6 | ) | (567.9 | ) | ||||||||
Favorable metal price lag | (4.0 | ) | (2.6 | ) | (13.5 | ) | (6.4 | ) | ||||||||
Segment commercial margin | $ | 150.0 | $ | 148.7 | $ | 460.0 | $ | 434.4 | ||||||||
RPAP | ||||||||||||||||
Segment revenues | $ | 7.9 | $ | — | $ | 13.7 | $ | — | ||||||||
Hedged cost of metal | (7.9 | ) | — | (13.9 | ) | — | ||||||||||
Segment commercial margin | $ | — | $ | — | $ | (0.2 | ) | $ | — | |||||||
Extrusions | ||||||||||||||||
Segment revenues | $ | 90.1 | $ | 89.1 | $ | 273.1 | $ | 276.7 | ||||||||
Hedged cost of metal | (48.8 | ) | (47.7 | ) | (148.6 | ) | (152.2 | ) | ||||||||
Favorable metal price lag | — | (1.5 | ) | (1.3 | ) | (2.7 | ) | |||||||||
Segment commercial margin | $ | 41.3 | $ | 39.9 | $ | 123.2 | $ | 121.8 | ||||||||
RSAA | ||||||||||||||||
Segment revenues | $ | 232.5 | $ | 219.1 | $ | 705.5 | $ | 732.4 | ||||||||
Hedged cost of metal | (156.6 | ) | (149.4 | ) | (487.9 | ) | (509.1 | ) | ||||||||
Segment commercial margin | $ | 75.9 | $ | 69.7 | $ | 217.6 | $ | 223.3 | ||||||||
RSEU | ||||||||||||||||
Segment revenues | $ | 134.6 | $ | 142.8 | $ | 429.8 | $ | 456.8 | ||||||||
Hedged cost of metal | (90.0 | ) | (98.6 | ) | (293.6 | ) | (314.7 | ) | ||||||||
Segment commercial margin | $ | 44.6 | $ | 44.2 | $ | 136.2 | $ | 142.1 |
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