Delaware | 001-34474 | 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 | |||
Press Release dated February 21, 2019 |
CENTURY ALUMINUM COMPANY | ||||
Date: | February 21, 2019 | By: | /s/ Craig Conti | |
Name: | Craig Conti | |||
Title: | Executive Vice President and Chief Financial Officer |
• | Shipments of 199,466 tonnes, a 9% increase over prior quarter driven by restarts at Hawesville and Sebree |
• | Net sales of $486.9 million, a 1% increase over prior quarter despite lower LME prices |
• | Net loss of $65.0 million, or $(0.74) per share |
• | Adjusted net loss(1) of $40.7 million, or $(0.43) per share |
• | Adjusted EBITDA(1) of $(18.1) million driven by the historically high alumina price relative to the metal price |
• | Shipments of 749,850 tonnes, a 1% increase over prior year driven by the restart at Hawesville partially offset by the temporary line loss at Sebree |
• | Net sales of $1,893.2 million, a 19% increase over prior year |
• | Net loss of $66.2 million, or $(0.76) per share |
• | Adjusted net loss(1) of $13.0 million, or $(0.14) per share |
• | Adjusted EBITDA(1) of $86.0 million despite the historically high alumina price relative to the metal price |
$MM (except shipments and per share data) | |||||||||||||||||
Q3 2018 | Q4 2018 | FY 2017 | FY 2018 | ||||||||||||||
Shipments (tonnes) | 182,926 | 199,466 | 743,198 | 749,850 | |||||||||||||
Net sales | $ | 481.8 | $ | 486.9 | $ | 1,589.1 | $ | 1,893.2 | |||||||||
Net income (loss) | (20.3 | ) | (65.0 | ) | 48.6 | (66.2 | ) | ||||||||||
Diluted earnings (loss) per share | (0.23 | ) | (0.74 | ) | 0.51 | (0.76 | ) | ||||||||||
Adjusted net income (loss)(1) | 2.3 | (40.7 | ) | 34.7 | (13.0 | ) | |||||||||||
Adjusted earnings (loss) per share(1) | 0.02 | (0.43 | ) | 0.36 | (0.14 | ) | |||||||||||
Adjusted EBITDA(1) | 28.7 | (18.1 | ) | 167.5 | 86.0 | ||||||||||||
Notes: | |||||||||||||||||
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
December 31, | September 30, | December 31, | |||||||||
2017 | 2018 | 2018 | |||||||||
NET SALES: | |||||||||||
Related parties | $ | 322.0 | $ | 305.3 | $ | 320.3 | |||||
Other customers | 111.9 | 176.5 | 166.6 | ||||||||
Total net sales | 433.9 | 481.8 | 486.9 | ||||||||
Cost of goods sold | 386.0 | 493.6 | 546.2 | ||||||||
Gross profit (loss) | 47.9 | (11.8 | ) | (59.3 | ) | ||||||
Selling, general and administrative expenses | 11.4 | 8.8 | 8.7 | ||||||||
Helguvik (gains) | (7.3 | ) | (4.5 | ) | — | ||||||
Other operating (income) expense - net | 0.5 | (0.5 | ) | 0.4 | |||||||
Operating income (loss) | 43.3 | (15.6 | ) | (68.4 | ) | ||||||
Interest expense | (5.6 | ) | (5.6 | ) | (5.7 | ) | |||||
Interest income | 0.5 | 0.4 | 0.2 | ||||||||
Net gain on forward and derivative contracts | 0.5 | 0.8 | 3.6 | ||||||||
Other income (expense) - net | (0.1 | ) | 0.7 | 1.1 | |||||||
Income (loss) before income taxes and equity in earnings of joint ventures | 38.6 | (19.3 | ) | (69.2 | ) | ||||||
Income tax (expense) benefit | (3.1 | ) | (1.7 | ) | 3.2 | ||||||
Income (loss) before equity in earnings of joint ventures | 35.5 | (21.0 | ) | (66.0 | ) | ||||||
Equity in earnings of joint ventures | 0.3 | 0.7 | 1.0 | ||||||||
Net income (loss) | $ | 35.8 | $ | (20.3 | ) | $ | (65.0 | ) | |||
Net income (loss) allocated to common stockholders | $ | 33.0 | $ | (20.3 | ) | $ | (65.0 | ) | |||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||
Basic | $ | 0.38 | $ | (0.23 | ) | $ | (0.74 | ) | |||
Diluted | $ | 0.37 | $ | (0.23 | ) | $ | (0.74 | ) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 87.3 | 87.6 | 87.6 | ||||||||
Diluted | 88.2 | 87.6 | 87.6 | ||||||||
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
December 31, | December 31, | ||||||
2017* | 2018 | ||||||
NET SALES: | |||||||
Related parties | $ | 1,198.1 | $ | 1,204.5 | |||
Other customers | 391.0 | 688.7 | |||||
Total net sales | 1,589.1 | 1,893.2 | |||||
Cost of goods sold | 1,457.8 | 1,916.1 | |||||
Gross profit (loss) | 131.3 | (22.9 | ) | ||||
Selling, general and administrative expenses | 44.8 | 40.2 | |||||
Helguvik (gains) | (7.3 | ) | (4.5 | ) | |||
Ravenswood (gains) | (5.5 | ) | — | ||||
Other operating expense - net | 2.1 | 0.4 | |||||
Operating income (loss) | 97.2 | (59.0 | ) | ||||
Interest expense | (22.2 | ) | (22.4 | ) | |||
Interest income | 1.4 | 1.5 | |||||
Net gain (loss) on forward and derivative contracts | (16.5 | ) | 6.3 | ||||
Other income (expense) - net | (4.5 | ) | 3.0 | ||||
Income (loss) before income taxes and equity in earnings of joint ventures | 55.4 | (70.6 | ) | ||||
Income tax (expense) benefit | (7.6 | ) | 0.2 | ||||
Income (loss) before equity in earnings of joint ventures | 47.8 | (70.4 | ) | ||||
Equity in earnings of joint ventures | 0.8 | 4.2 | |||||
Net income (loss) | $ | 48.6 | $ | (66.2 | ) | ||
Net income (loss) allocated to common stockholders | $ | 44.7 | $ | (66.2 | ) | ||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||
Basic | $ | 0.51 | $ | (0.76 | ) | ||
Diluted | $ | 0.51 | $ | (0.76 | ) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 87.3 | 87.6 | |||||
Diluted | 88.0 | 87.6 | |||||
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
December 31, 2017 | December 31, 2018 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 167.2 | $ | 38.9 | |||
Restricted cash | 0.8 | 0.8 | |||||
Accounts receivable - net | 43.1 | 82.5 | |||||
Due from affiliates | 10.4 | 22.7 | |||||
Inventories | 317.5 | 343.8 | |||||
Prepaid and other current assets | 14.7 | 18.0 | |||||
Total current assets | 553.7 | 506.7 | |||||
Property, plant and equipment - net | 971.9 | 967.3 | |||||
Other assets | 56.0 | 63.5 | |||||
TOTAL | $ | 1,581.6 | $ | 1,537.5 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 89.9 | $ | 119.4 | |||
Due to affiliates | 20.4 | 10.3 | |||||
Accrued and other current liabilities | 61.4 | 52.5 | |||||
Accrued employee benefits costs | 11.0 | 11.0 | |||||
Revolving credit facility | — | 23.3 | |||||
Industrial revenue bonds | 7.8 | 7.8 | |||||
Total current liabilities | 190.5 | 224.3 | |||||
Senior notes payable | 248.2 | 248.6 | |||||
Accrued pension benefits costs - less current portion | 38.9 | 50.9 | |||||
Accrued postretirement benefits costs - less current portion | 113.0 | 101.2 | |||||
Other liabilities | 57.9 | 46.0 | |||||
Deferred taxes | 103.5 | 104.3 | |||||
Total noncurrent liabilities | 561.5 | 551.0 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 74,364 outstanding at December 31, 2017; 160,000 issued and 71,967 outstanding at December 31, 2018) | 0.0 | 0.0 | |||||
Common stock (one cent par value, 195,000,000 authorized; 94,731,298 issued and 87,544,777 outstanding at December 31, 2017; 95,289,961 issued and 88,103,440 outstanding at December 31, 2018) | 0.9 | 1.0 | |||||
Additional paid-in capital | 2,517.4 | 2,523.0 | |||||
Treasury stock, at cost | (86.3 | ) | (86.3 | ) | |||
Accumulated other comprehensive loss | (91.7 | ) | (98.7 | ) | |||
Accumulated deficit | (1,510.7 | ) | (1,576.8 | ) | |||
Total shareholders’ equity | 829.6 | 762.2 | |||||
TOTAL | $ | 1,581.6 | $ | 1,537.5 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
December 31, | December 31, | ||||||
2017* | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 48.6 | $ | (66.2 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Lower of cost or NRV inventory adjustment | (1.1 | ) | 36.5 | ||||
Unrealized (gains) on forward and derivative contracts | — | (6.5 | ) | ||||
Depreciation and amortization | 84.2 | 90.1 | |||||
Helguvik (gains) | (7.3 | ) | (4.5 | ) | |||
Ravenswood (gains) | (5.5 | ) | — | ||||
Other non-cash items - net | (6.7 | ) | (13.2 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable - net | (30.6 | ) | (39.4 | ) | |||
Due from affiliates | 6.3 | (12.4 | ) | ||||
Inventories | (67.5 | ) | (62.8 | ) | |||
Prepaid and other current assets | 7.8 | (0.9 | ) | ||||
Accounts payable, trade | 4.7 | 30.5 | |||||
Due to affiliates | 4.8 | (10.1 | ) | ||||
Accrued and other current liabilities | 14.5 | (11.1 | ) | ||||
Ravenswood retiree legal settlement | (5.0 | ) | (2.0 | ) | |||
Other - net | 4.3 | 2.9 | |||||
Net cash (used in) provided by operating activities | 51.5 | (69.1 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (31.8 | ) | (83.0 | ) | |||
Proceeds from sale of property, plant and equipment | 14.4 | 0.1 | |||||
Net cash (used in) investing activities | (17.4 | ) | (82.9 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 1.3 | 23.3 | |||||
Repayments under revolving credit facilities | (1.3 | ) | — | ||||
Issuance of common stock | 0.4 | 0.4 | |||||
Net cash provided by financing activities | 0.4 | 23.7 | |||||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 34.5 | (128.3 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of year | 133.5 | 168.0 | |||||
Cash, cash equivalents and restricted cash, end of year | $ | 168.0 | $ | 39.7 | |||
Supplemental Cash Flow Information: | |||||||
Cash paid for: | |||||||
Interest | $ | 19.5 | $ | 19.7 | |||
Taxes | 5.6 | 13.1 | |||||
Non-cash investing activities: | |||||||
Capital expenditures | 0.6 | 8.0 |
SHIPMENTS - PRIMARY ALUMINUM(1) | |||||||||||||||||||||
United States | Iceland | Total | |||||||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | ||||||||||||||||
2018 | |||||||||||||||||||||
4th Quarter | 117,683 | $ | 301.8 | 81,782 | $ | 183.1 | 199,466 | $ | 484.9 | ||||||||||||
3rd Quarter | 103,103 | $ | 283.3 | 79,823 | $ | 194.5 | 182,926 | $ | 477.8 | ||||||||||||
2017 | |||||||||||||||||||||
4th Quarter | 108,754 | $ | 253.5 | 80,246 | $ | 178.7 | 189,000 | $ | 432.2 | ||||||||||||
Full Year 2018 | 428,389 | $ | 1,121.9 | 321,461 | $ | 752.3 | 749,850 | $ | 1,874.2 | ||||||||||||
Full Year 2017 | 425,669 | $ | 929.6 | 317,529 | $ | 650.7 | 743,198 | $ | 1,580.3 |
Three months ended | Three months ended | |||||||||||||||
September 30, 2018 | December 31, 2018 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net loss as reported | $ | (20.3 | ) | $ | (0.23 | ) | $ | (65.0 | ) | $ | (0.74 | ) | ||||
Lower of cost or NRV inventory adjustment, net of tax | 9.2 | 0.10 | 29.1 | 0.33 | ||||||||||||
Net (gain) on forward and derivative contracts | — | — | (3.2 | ) | (0.04 | ) | ||||||||||
Sebree equipment failure | 16.9 | 0.19 | (4.3 | ) | (0.05 | ) | ||||||||||
Hawesville restart project | (0.7 | ) | (0.01 | ) | 2.7 | 0.03 | ||||||||||
Sebree signing bonus | 1.7 | 0.02 | — | — | ||||||||||||
Helguvik (gains) | (4.5 | ) | (0.05 | ) | — | — | ||||||||||
Impact of preferred shares | — | — | — | 0.04 | ||||||||||||
Adjusted net income (loss) | $ | 2.3 | $ | 0.02 | $ | (40.7 | ) | $ | (0.43 | ) |
Three Months Ended | Three Months Ended | |||||||
September 30, 2018 | December 31, 2018 | |||||||
Net loss as reported | $ | (20.3 | ) | $ | (65.0 | ) | ||
Interest expense | 5.6 | 5.7 | ||||||
Interest income | (0.4 | ) | (0.2 | ) | ||||
Net (gain) on forward and derivative contracts | (0.8 | ) | (3.6 | ) | ||||
Other (income) - net | (0.7 | ) | (1.1 | ) | ||||
Income tax expense (benefit) | 1.7 | (3.2 | ) | |||||
Equity in earnings of joint ventures | (0.7 | ) | (1.0 | ) | ||||
Operating loss | $ | (15.6 | ) | $ | (68.4 | ) | ||
Lower of cost or NRV inventory adjustment | 9.2 | 30.6 | ||||||
Sebree equipment failure | 16.9 | (4.3 | ) | |||||
Hawesville restart project | (2.9 | ) | 0.6 | |||||
Sebree signing bonus | 1.7 | — | ||||||
Helguvik (gains) | (4.5 | ) | — | |||||
Depreciation and amortization | 23.9 | 23.4 | ||||||
Adjusted EBITDA | $ | 28.7 | $ | (18.1 | ) |
Twelve months ended | Twelve months ended | |||||||||||||||
December 31, 2017 | December 31, 2018 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net income (loss) as reported | $ | 48.6 | $ | 0.51 | $ | (66.2 | ) | $ | (0.76 | ) | ||||||
Lower of cost or NRV inventory adjustment, net of tax | (1.1 | ) | (0.01 | ) | 35.0 | 0.40 | ||||||||||
Net (gain) on forward and derivative contracts | — | — | (5.1 | ) | (0.06 | ) | ||||||||||
Sebree equipment failure | — | — | 21.1 | 0.24 | ||||||||||||
Hawesville restart project | — | — | 5.0 | 0.06 | ||||||||||||
Sebree signing bonus | — | — | 1.7 | 0.02 | ||||||||||||
Helguvik (gains) | (7.3 | ) | (0.08 | ) | (4.5 | ) | (0.05 | ) | ||||||||
Ravenswood (gains) | (5.5 | ) | (0.06 | ) | — | — | ||||||||||
Impact of preferred shares | — | — | — | 0.01 | ||||||||||||
Adjusted net income (loss) | $ | 34.7 | $ | 0.36 | $ | (13.0 | ) | $ | (0.14 | ) |
Twelve Months Ended | Twelve Months Ended | |||||||
December 31, 2017* | December 31, 2018 | |||||||
Net income (loss) as reported | $ | 48.6 | $ | (66.2 | ) | |||
Interest expense | 22.2 | 22.4 | ||||||
Interest income | (1.4 | ) | (1.5 | ) | ||||
Net (gain) loss on forward and derivative contracts | 16.5 | (6.3 | ) | |||||
Other (income) expense - net | 4.5 | (3.0 | ) | |||||
Income tax expense (benefit) | 7.6 | (0.2 | ) | |||||
Equity in earnings of joint ventures | (0.8 | ) | (4.2 | ) | ||||
Operating income (loss) | $ | 97.2 | $ | (59.0 | ) | |||
Lower of cost or NRV inventory adjustment | (1.1 | ) | 36.5 | |||||
Sebree equipment failure | — | 21.1 | ||||||
Hawesville restart project | — | 0.1 | ||||||
Sebree signing bonus | — | 1.7 | ||||||
Helguvik (gains) | (7.3 | ) | (4.5 | ) | ||||
Ravenswood (gains) | (5.5 | ) | — | |||||
Depreciation and amortization | 84.2 | 90.1 | ||||||
Adjusted EBITDA | $ | 167.5 | $ | 86.0 |