-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Bn3ukKnbaOtm9OVKiAZkIt3mCUlEifO56HHmgF58BQJpp5jaYUXEYSvQPrlFEKz8 VtyX104LLJb14uNb1Yo9qA== 0000950123-04-008923.txt : 20040729 0000950123-04-008923.hdr.sgml : 20040729 20040729123800 ACCESSION NUMBER: 0000950123-04-008923 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTURY ALUMINUM CO CENTRAL INDEX KEY: 0000949157 STANDARD INDUSTRIAL CLASSIFICATION: PRIMARY PRODUCTION OF ALUMINUM [3334] IRS NUMBER: 133070826 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27918 FILM NUMBER: 04938162 BUSINESS ADDRESS: STREET 1: 2511 GARDEN ROAD STREET 2: BUILDING A SUITE 200 CITY: MONTEREY STATE: CA ZIP: 93940 BUSINESS PHONE: 3042736000 MAIL ADDRESS: STREET 1: 2511 GARDEN ROAD STREET 2: BUILDING A SUITE 200 CITY: MONTEREY STATE: CA ZIP: 93940 8-K 1 y99527e8vk.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 28, 2004 CENTURY ALUMINUM COMPANY (Exact name of registrant as specified in its charter) DELAWARE 0-27918 13-3070826 (State or other jurisdiction of (Commission File Number) (IRS Employer Incorporation) Identification No.) 2511 GARDEN ROAD BUILDING A, SUITE 200 MONTEREY, CALIFORNIA 93940 (Address of principal executive offices) (Zip Code)
(831) 642-9300 (Registrant's telephone number, including area code) ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits. The following exhibits are furnished with this report on Form 8-K:
Exhibit Number Description - -------------- ----------- 99.1 Earnings Release, dated July 28, 2004.
ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On July 28, 2004, Century Aluminum Company (the "Company") issued an earnings release announcing its results of operations for the quarter ended June 30, 2004. A copy of the Company's earnings release is attached hereto as Exhibit 99.1. The Company will hold a conference call on Thursday July 29, 2004, at 2:00 P.M. Eastern Time to discuss the earnings. The dial-in number within the United States is (877) 777-1972 and the International dial-in number is (612) 338-1294. Using these call-in numbers will permit callers to ask questions of Century management. A playback number has been established for those unable to participate in the conference call. Playback begins at 7:15 P.M. Eastern Time on Thursday July 29, 2004, and ends at 11:59 P.M. Eastern Time on Saturday, July 31, 2004. The playback number within the United States is (800) 475-6701 and International (320) 365-3844, the access code is 738416. After July 29, 2004, interested parties will be able to access an archived transcript of the call that will be posted in the Investors section of the Company's web site located at www.centuryaluminum.com. The transcript will remain available on the Company's website for six months. The information in this Form 8-K and Exhibit 99.1 attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, whether made before or after the date hereof, except as shall be expressly set forth by specific reference in such filing. -2- SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CENTURY ALUMINUM COMPANY Date: July 29, 2004 By: /s/ Gerald J. Kitchen ------------------- ------------------------------------------ Name: Gerald J. Kitchen Title: Executive Vice President, General Counsel, Chief Administrative Officer and Secretary -3- EXHIBIT INDEX
Exhibit Number Description - -------------- ----------- 99.1 Earnings Release, dated July 28, 2004.
-4- EX-99.1 2 y99527exv99w1.txt PRESS RELEASE EXHIBIT 99.1 NEWS RELEASE [CENTURY ALUMINUM LOGO] CENTURY REPORTS RECORD OPERATING INCOME FOR SECOND QUARTER Monterey, CA, July 28, 2004 - Century Aluminum Company (NASDAQ: CENX) reported net income of $18.3 million, or $0.60 a common share, fully diluted, for the second quarter of 2004. For the second quarter of 2003, the company reported a net loss of $5.0 million, or $0.26 a share after preferred dividends. QUARTERLY AND YEAR-TO-DATE HIGHLIGHTS: - Operating income in the recent quarter rose to a quarterly record of $41.2 million, an 11-fold increase over $3.7 million in the year-ago quarter; operating income in the first six months of 2004 rose to a six-month record of $72.8 million, a 10-fold increase over $7.3 million in the year-ago period - Sales were a quarterly record of $263.7 and a six-month record of $495.8 million - Aluminum shipments were a quarterly record 294.8 million pounds and a six-month record 591.6 million pounds - Price realizations were the highest in nine years - Acquisition of Nordural hf in Iceland was completed; construction began on a project to double the capacity of the plant to 180,000 metric tonnes per year by mid-2006. Sales in the second quarter of 2004 were $263.7 million compared with $196.2 million in the second quarter of 2003. Direct shipments of primary aluminum in the 2004 quarter were 294.8 million pounds compared with 290.0 million pounds in the 2003 quarter. Net income for the first six months of 2004 was $23.1 million, or $0.87 a share, fully diluted. This compares with a net income of $12.6 million, or $0.56 a share, fully diluted, in the year-ago period. Sales in the first six months of 2004 were $495.8 million compared with $375.2 million in the same period of 2003. Direct shipments of primary aluminum for the 2004 period were 591.6 million pounds compared with 547.1 million pounds in the year-ago period. Financial results for the second quarter of 2004 include Nordural hf from April 27, 2004, the date of acquisition. Commenting on the company's performance, Craig A. Davis, Century Chairman and Chief Executive Officer, said: "Favorable market conditions, very strong aluminum prices and the first benefits of our Nordural acquisition combined to produce an outstanding quarter for our company. The company's overall financial performance was at record levels." Century owns 615,000 mtpy of primary aluminum capacity. The company owns and operates a 244,000-mtpy plant at Hawesville, KY, a 170,000-mtpy plant at Ravenswood, WV and a 90,000-mtpy plant at Grundartangi, Iceland. Century also owns a 49.67-percent interest in a 222,000-mtpy reduction plant at Mt. Holly, SC. Alcoa Inc. owns the remainder and is the operating partner. Century's corporate offices are located in Monterey, CA. This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. Century has based its forward-looking statements on current expectations and projections about the future, however these statements are subject to risks, uncertainties and assumptions, any of which could cause Century's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in Century's filings with the Securities and Exchange Commission. Century does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made. Editorial contact: A. T. Posti (831) 642-9364 CENTURY ALUMINUM COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in Thousands, Except Per Share Amounts) (Unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------- -------- 2004 2003 2004 2003 ---- ---- ---- ---- NET SALES: Third-party customers ................................................ $ 225,430 $ 163,746 $ 417,776 $ 317,201 Related parties ...................................................... 38,303 32,421 78,051 57,975 --------- --------- --------- --------- 263,733 196,167 495,827 375,176 COST OF GOODS SOLD ...................................................... 218,542 188,391 413,587 359,694 --------- --------- --------- --------- GROSS PROFIT ............................................................ 45,191 7,776 82,240 15,482 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ............................ 3,991 4,086 9,399 8,221 --------- --------- --------- --------- OPERATING INCOME ........................................................ 41,200 3,690 72,841 7,261 INTEREST INCOME (EXPENSE) - Net ......................................... (11,281) (11,285) (21,888) (21,358) NET GAIN (LOSS) ON FORWARD CONTRACTS .................................... (1,177) 211 (13,997) 41,904 OTHER INCOME (EXPENSE) .................................................. 9 (770) (605) (500) --------- --------- --------- --------- INCOME (LOSS) BEFORE INCOME TAXES ....................................... 28,751 (8,154) 36,351 27,307 INCOME TAX (EXPENSE) BENEFIT ............................................ (10,463) 3,147 (13,263) (9,827) --------- --------- --------- --------- INCOME (LOSS) BEFORE MINORITY INTEREST AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE .................. 18,288 (5,007) 23,088 17,480 MINORITY INTEREST ....................................................... -- -- -- 986 --------- --------- --------- --------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ....................................... 18,288 (5,007) 23,088 18,466 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $3.4 MILLION ........................ -- -- -- (5,878) --------- --------- --------- --------- NET INCOME (LOSS) ....................................................... 18,288 (5,007) 23,088 12,588 PREFERRED DIVIDENDS ..................................................... (269) (500) (769) (1,000) --------- --------- --------- --------- NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS ..................... $ 18,019 $ (5,507) $ 22,319 $ 11,588 ========= ========= ========= ========= EARNINGS (LOSS) PER COMMON SHARE Basic - Before cumulative effect of change in accounting principle ... $ 0.61 $ (0.26) $ 0.88 $ 0.83 Basic - Cumulative effect of change in accounting principle .......... $ -- $ -- $ -- $ (0.28) --------- --------- --------- --------- Basic - Net income (loss) ............................................ $ 0.61 $ (0.26) $ 0.88 $ 0.55 ========= ========= ========= ========= Diluted - Before cumulative effect of change in accounting principle . $ 0.60 $ (0.26) $ 0.87 $ 0.82 Diluted - Cumulative effect of change in accounting principle ........ $ -- $ -- $ -- $ (0.26) --------- --------- --------- --------- Diluted - Net income (loss) .......................................... $ 0.60 $ (0.26) $ 0.87 $ 0.56 ========= ========= ========= ========= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic ................................................................ 29,629 21,070 25,412 21,070 Diluted .............................................................. 30,542 21,070 25,588 22,465
CENTURY ALUMINUM COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
JUNE 30, DECEMBER 31, ASSETS 2004 2003 ---- ---- CURRENT ASSETS: Cash ................................................................ $ 75,169 $ 28,204 Restricted cash ..................................................... 8,500 -- Accounts receivable - net ........................................... 68,399 51,370 Due from affiliates ................................................. 12,016 10,957 Inventories ......................................................... 104,321 89,360 Prepaid and other assets ............................................ 9,648 4,101 Deferred taxes - current portion .................................... 6,133 3,413 ----------- ----------- Total current assets ............................................. 284,186 187,405 Property, Plant and Equipment - Net .................................... 743,614 494,957 Intangible Asset - Net ................................................. 92,972 99,136 Goodwill ............................................................... 107,259 -- Other Assets ........................................................... 32,502 28,828 ----------- ----------- Total ............................................................... $ 1,260,533 $ 810,326 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable, trade ............................................. $ 43,583 $ 34,829 Due to affiliates ................................................... 32,657 27,139 Industrial revenue bonds ............................................ 7,815 7,815 Long term debt - current portion .................................... 13,460 -- Accrued and other current liabilities ............................... 46,401 30,154 Accrued employee benefits costs - current portion ................... 8,296 8,934 ----------- ----------- Total current liabilities ........................................ 152,212 108,871 Senior Secured Notes Payable - Net ..................................... 322,561 322,310 Nordural Debt .......................................................... 170,472 -- Note Payable - Affiliates .............................................. -- 14,000 Accrued Pension Benefit Costs - Less current portion ................... 11,584 10,764 Accrued Postretirement Benefits Costs - Less current portion ........... 83,411 78,218 Other Liabilities ...................................................... 35,200 33,372 Due to Affiliates - Less current portion ............................... 7,107 -- Deferred Taxes ......................................................... 68,310 55,094 ----------- ----------- Total noncurrent liabilities ..................................... 698,645 513,758 SHAREHOLDERS' EQUITY: Convertible Preferred Stock (8.0% cumulative, 0 and 500,000 shares outstanding at June 30, 2004 and December 31, 2003, respectively) -- 25,000 Common Stock (one cent par value, 50,000,000 shares authorized; 31,681,883 shares outstanding at June 30, 2004 and 21,130,839 at December 31, 2003) ............................................... 317 211 Additional Paid-In Capital .......................................... 409,568 173,138 Other Comprehensive Income (Loss) ................................... (14,556) (5,222) Retained Earnings (Accumulated Deficit) ............................. 14,347 (5,430) ----------- ----------- Total shareholders' equity ....................................... 409,676 187,697 ----------- ----------- Total ............................................................ $ 1,260,533 $ 810,326 =========== ===========
CENTURY ALUMINUM COMPANY CONSOLIDATED STATEMENTS OF CASH FLOW (Dollars in Thousands) (Unaudited)
SIX MONTHS ENDED JUNE 30, -------- 2004 2003 ---- ---- CASH FLOWS FROM OPERATING ACTIVITIES: Net income .................................................. $ 23,088 $ 12,588 Adjustments to reconcile net income to net cash provided by operating activities: Unrealized (Gain) Loss on forward contracts ........... 6,659 (12,292) Depreciation and amortization ......................... 23,731 25,787 Deferred income taxes ................................. 4,926 6,396 Pension and other postretirement benefits ............. 5,376 5,897 Inventory market adjustment ........................... (2,273) (394) Loss on disposal of assets ............................ 695 836 Minority Interest ..................................... -- (986) Cumulative effect of change in accounting principle ... -- 9,308 Change in operating assets and liabilities: Accounts receivable - net .......................... (8,264) (4,178) Due from affiliates ................................ (1,059) (4,604) Inventories ........................................ (703) 5,734 Prepaids and other assets .......................... (2,724) (2,733) Accounts payable, trade ............................ (1,294) (3,184) Due to affiliates .................................. (3,383) 1,394 Accrued and other current liabilities .............. 9,308 632 Other - net ........................................ (2,472) 9,527 --------- --------- Net cash provided by operating activities ............. 51,611 49,728 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment ................... (5,712) (10,300) Acquisitions ................................................ (184,869) (59,837) --------- --------- Net cash used in investing activities .................... (190,581) (70,137) CASH FLOWS FROM FINANCING ACTIVITIES: Repayment of debt ........................................... (20,659) -- Financing fees .............................................. -- (297) Dividends ................................................... (3,311) (11) Issuance of common stock .................................... 209,905 -- --------- --------- Net cash provided (used) in financing activities ......... 185,935 (308) NET INCREASE (DECREASE) IN CASH ................................ 46,965 (20,717) CASH, BEGINNING OF PERIOD ...................................... 28,204 45,092 --------- --------- CASH, END OF PERIOD ............................................ $ 75,169 $ 24,375 ========= =========
CENTURY ALUMINUM COMPANY SELECTED OPERATING DATA (in Thousands, Except Dollars per Pound) (Unaudited) SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll ---------- ---- Pounds $/Pound Pounds Revenue ------ ------- ------ ------- 2004 2nd Quarter 294,816 $ 0.82 35,600 $ 21,483 1st Quarter 296,743 $ 0.78 -- $ -- 2003 2nd Quarter 290,023 $ 0.68 -- $ -- 1st Quarter 257,040 $ 0.70 -- $ --
(1) Does not include Toll shipments from Nordural -----END PRIVACY-ENHANCED MESSAGE-----