Delaware | 1-34474 | 13-3070826 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One South Wacker Drive Suite 1000 Chicago, Illinois (Address of Principal Executive Offices) | 60606 (Zip Code) |
(312) 696-3101 | |
(Registrant's telephone number, including area code) | |
N/A | |
(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |
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)) |
Exhibit Number | Description | |||
99.1 | August 2, 2017 |
CENTURY ALUMINUM COMPANY | ||||
Date: | August 2, 2017 | By: | /s/ JESSE E. GARY | |
Name: | Jesse E. Gary | |||
Title: | Executive Vice President, General Counsel & Secretary |
• | Net income of $7.1 million, or $0.07 per diluted share |
• | Adjusted net income1 of $0.8 million, or $0.01 per diluted share |
• | Adjusted EBITDA1 of $34.0 million, up $11.8 million sequentially on higher LME prices partially offset by higher raw material costs |
• | Revenue of $388.8 million, a 6% increase over prior quarter |
• | Cash position at quarter end of $130.7 million and revolver availability of $135.7 million |
$MM (except shipments and per share data) | |||||||||
Q1 2017 | Q2 2017 | ||||||||
Shipments (tonnes) | 186,395 | 182,829 | |||||||
Revenue | $ | 365.8 | $ | 388.8 | |||||
Net (Loss)/Income | (15.1 | ) | 7.1 | ||||||
Diluted EPS | (0.17 | ) | 0.07 | ||||||
Adjusted Net (Loss)/Income1 | (5.0 | ) | 0.8 | ||||||
Adjusted EPS1 | (0.05 | ) | 0.01 | ||||||
Adjusted EBITDA1 | 22.2 | 34.0 | |||||||
Notes: | |||||||||
1 - Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in thousands, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
June 30, | March 31, | June 30, | |||||||||
2016 | 2017 | 2017 | |||||||||
NET SALES: | |||||||||||
Related parties | $ | 290,283 | $ | 280,573 | $ | 296,271 | |||||
Other customers | 36,471 | 85,213 | 92,531 | ||||||||
Total net sales | 326,754 | 365,786 | 388,802 | ||||||||
Cost of goods sold | 321,172 | 348,935 | 366,342 | ||||||||
Gross profit | 5,582 | 16,851 | 22,460 | ||||||||
Selling, general and administrative expenses | 9,945 | 10,702 | 9,352 | ||||||||
Other operating expense - net | 578 | 973 | 180 | ||||||||
Operating (loss)/income | (4,941 | ) | 5,176 | 12,928 | |||||||
Interest expense | (5,497 | ) | (5,571 | ) | (5,461 | ) | |||||
Interest income | 171 | 230 | 283 | ||||||||
Net gain/(loss) on forward and derivative contracts | 353 | (16,137 | ) | 2,957 | |||||||
Other (expense)/income - net | (299 | ) | 384 | (1,876 | ) | ||||||
(Loss)/Income before income taxes and equity in earnings of joint ventures | (10,213 | ) | (15,918 | ) | 8,831 | ||||||
Income tax benefit/(expense) | 319 | 308 | (1,452 | ) | |||||||
(Loss)/Income before equity in earnings of joint ventures | (9,894 | ) | (15,610 | ) | 7,379 | ||||||
Equity in earnings/(loss) of joint ventures | 379 | 471 | (248 | ) | |||||||
Net (loss)/income | $ | (9,515 | ) | $ | (15,139 | ) | $ | 7,131 | |||
Net (loss)/income allocated to common stockholders | $ | (9,515 | ) | $ | (15,139 | ) | $ | 6,563 | |||
(LOSS)/INCOME PER COMMON SHARE: | |||||||||||
Basic | $ | (0.11 | ) | $ | (0.17 | ) | $ | 0.08 | |||
Diluted | $ | (0.11 | ) | $ | (0.17 | ) | $ | 0.07 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 87,060 | 87,254 | 87,272 | ||||||||
Diluted | 87,060 | 87,254 | 88,057 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Six months ended | |||||||
June 30, | June 30, | ||||||
2016 | 2017 | ||||||
NET SALES: | |||||||
Related parties | $ | 570,660 | $ | 576,844 | |||
Other customers | 74,948 | 177,744 | |||||
Total net sales | 645,608 | 754,588 | |||||
Cost of goods sold | 643,078 | 715,277 | |||||
Gross profit | 2,530 | 39,311 | |||||
Selling, general and administrative expenses | 19,570 | 20,054 | |||||
Other operating expense - net | 1,459 | 1,153 | |||||
Operating (loss)/income | (18,499 | ) | 18,104 | ||||
Interest expense | (10,990 | ) | (11,032 | ) | |||
Interest income | 285 | 513 | |||||
Net gain/(loss) on forward and derivative contracts | 706 | (13,180 | ) | ||||
Other income/(expense) - net | (305 | ) | (1,492 | ) | |||
(Loss)/Income before income taxes and equity in earnings of joint ventures | (28,803 | ) | (7,087 | ) | |||
Income tax benefit/(expense) | 2,389 | (1,144 | ) | ||||
Loss before equity in earnings of joint ventures | (26,414 | ) | (8,231 | ) | |||
Equity in earnings of joint ventures | 736 | 223 | |||||
Net loss | $ | (25,678 | ) | $ | (8,008 | ) | |
Net loss allocated to common stockholders | $ | (25,678 | ) | $ | (8,008 | ) | |
LOSS PER COMMON SHARE: | |||||||
Basic | $ | (0.29 | ) | $ | (0.09 | ) | |
Diluted | $ | (0.29 | ) | $ | (0.09 | ) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 87,050 | 87,263 | |||||
Diluted | 87,050 | 87,263 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except share amounts) | |||||||
(Unaudited) | |||||||
December 31, 2016 | June 30, 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 132,403 | $ | 130,673 | |||
Restricted cash | 1,050 | 855 | |||||
Accounts receivable - net | 12,432 | 42,473 | |||||
Due from affiliates | 16,651 | 10,495 | |||||
Inventories | 233,563 | 254,611 | |||||
Prepaid and other current assets | 22,210 | 18,624 | |||||
Assets held for sale | 22,313 | — | |||||
Total current assets | 440,622 | 457,731 | |||||
Property, plant and equipment - net | 1,026,285 | 1,000,503 | |||||
Other assets | 73,420 | 67,395 | |||||
TOTAL | $ | 1,540,327 | $ | 1,525,629 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 94,960 | $ | 92,131 | |||
Due to affiliates | 15,368 | 19,092 | |||||
Accrued and other current liabilities | 50,100 | 45,679 | |||||
Accrued employee benefits costs | 10,917 | 10,767 | |||||
Industrial revenue bonds | 7,815 | 7,815 | |||||
Total current liabilities | 179,160 | 175,484 | |||||
Senior notes payable | 247,699 | 247,922 | |||||
Accrued pension benefits costs - less current portion | 49,493 | 47,601 | |||||
Accrued postretirement benefits costs - less current portion | 126,355 | 128,033 | |||||
Other liabilities | 72,026 | 66,840 | |||||
Deferred taxes | 108,939 | 108,988 | |||||
Total noncurrent liabilities | 604,512 | 599,384 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 75,625 outstanding at December 31, 2016; 160,000 issued and 75,346 outstanding at June 30, 2017) | 1 | 1 | |||||
Common stock (one cent par value, 195,000,000 authorized; 94,437,418 issued and 87,250,897 outstanding at December 31, 2016; 94,502,486 issued and 87,315,965 outstanding at June 30, 2017) | 944 | 945 | |||||
Additional paid-in capital | 2,515,131 | 2,516,363 | |||||
Treasury stock, at cost | (86,276 | ) | (86,276 | ) | |||
Accumulated other comprehensive loss | (113,893 | ) | (113,012 | ) | |||
Accumulated deficit | (1,559,252 | ) | (1,567,260 | ) | |||
Total shareholders’ equity | 756,655 | 750,761 | |||||
TOTAL | $ | 1,540,327 | $ | 1,525,629 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Six months ended | |||||||
June 30, | June 30, | ||||||
2016 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (25,678 | ) | $ | (8,008 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Unrealized loss on forward and derivative contracts | — | 7,857 | |||||
Unrealized gain on E.ON contingent obligation | (706 | ) | (706 | ) | |||
Lower of cost or NRV inventory adjustment | (871 | ) | (4,102 | ) | |||
Depreciation and amortization | 42,504 | 42,222 | |||||
Pension and other postretirement benefits | 1,345 | 1,524 | |||||
Deferred income taxes | (6,513 | ) | (757 | ) | |||
Equity in earnings of joint ventures, net of dividends | (736 | ) | (145 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable - net | (4,829 | ) | (30,040 | ) | |||
Due from affiliates | 2,906 | 6,156 | |||||
Inventories | 2,471 | (16,946 | ) | ||||
Prepaid and other current assets | 12,516 | 3,834 | |||||
Accounts payable, trade | (1,019 | ) | (947 | ) | |||
Due to affiliates | 1,560 | 3,604 | |||||
Accrued and other current liabilities | (485 | ) | (4,447 | ) | |||
Other - net | 1,138 | 3,994 | |||||
Net cash provided by operating activities | 23,603 | 3,093 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (7,734 | ) | (18,843 | ) | |||
Proceeds from sale of Ravenswood | — | 13,585 | |||||
Restricted and other cash deposits | (1,878 | ) | 195 | ||||
Net cash used in investing activities | (9,612 | ) | (5,063 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 595 | 720 | |||||
Repayments under revolving credit facilities | (595 | ) | (720 | ) | |||
Issuance of common stock | — | 240 | |||||
Net cash provided by financing activities | — | 240 | |||||
CHANGE IN CASH AND CASH EQUIVALENTS | 13,991 | (1,730 | ) | ||||
Cash and cash equivalents, beginning of period | 115,393 | 132,403 | |||||
Cash and cash equivalents, end of period | $ | 129,384 | $ | 130,673 |
SHIPMENTS - PRIMARY ALUMINUM | ||||||||||||||||||||
Direct¹ | Toll | |||||||||||||||||||
United States | Iceland | Iceland | ||||||||||||||||||
Tonnes | Sales $ (000) | Tonnes | Sales $ (000) | Tonnes | Sales $ (000) | |||||||||||||||
2017 | ||||||||||||||||||||
2nd Quarter | 103,762 | $ | 225,552 | 79,067 | $ | 161,456 | — | $ | — | |||||||||||
1st Quarter | 106,961 | $ | 214,705 | 79,434 | $ | 149,535 | — | $ | — | |||||||||||
2016 | ||||||||||||||||||||
2nd Quarter | 106,974 | $ | 204,173 | 54,968 | $ | 92,707 | 23,625 | $ | 27,944 |
Three months ended | Three months ended | |||||||||||||||
March 31, 2017 | June 30, 2017 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net (loss)/income as reported | $ | (15.1 | ) | $ | (0.17 | ) | $ | 7.1 | $ | 0.07 | ||||||
Unrealized loss/(gain) on forward and derivative contracts | 14.0 | 0.16 | (6.1 | ) | (0.06 | ) | ||||||||||
Lower of cost or NRV inventory adjustment | (3.9 | ) | (0.04 | ) | (0.2 | ) | 0.00 | |||||||||
Adjusted net (loss)/income | $ | (5.0 | ) | $ | (0.05 | ) | $ | 0.8 | $ | 0.01 |
Three Months Ended | Three Months Ended | ||||||
March 31, 2017 | June 30, 2017 | ||||||
Net (loss)/income | $ | (15.1 | ) | $ | 7.1 | ||
Interest expense | 5.6 | 5.5 | |||||
Interest income | (0.2 | ) | (0.3 | ) | |||
Net loss/(gain) on forward and derivative contracts | 16.1 | (3.0 | ) | ||||
Other (income)/expense - net | (0.4 | ) | 1.9 | ||||
Income tax (benefit)/expense | (0.3 | ) | 1.5 | ||||
Equity in earnings of joint ventures | (0.5 | ) | 0.2 | ||||
Operating income | $ | 5.2 | $ | 12.9 | |||
Lower of cost or NRV inventory adjustment | (3.9 | ) | (0.2 | ) | |||
Depreciation and amortization | 20.9 | 21.3 | |||||
Adjusted EBITDA | $ | 22.2 | $ | 34.0 |