-----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, QOzGVu24BENWvzQkU7dzsNY1YofFamfjhBWpKORUhVEwdzVzmRKXFVsHRCaQrzaq Ii3cXs36DWPdHk1fRAR7Yg== 0000950123-05-002119.txt : 20050223 0000950123-05-002119.hdr.sgml : 20050223 20050223115044 ACCESSION NUMBER: 0000950123-05-002119 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050222 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050223 DATE AS OF CHANGE: 20050223 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: 05633351 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 y06094e8vk.txt FORM 8-K ================================================================================ UNITED STATES 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): February 22, 2005 ------------------ CENTURY ALUMINUM COMPANY (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) DELAWARE 0-27918 13-3070826 (State or other jurisdiction (Commission File (IRS Employer of Incorporation) Number) 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) 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: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATION AND FINANCIAL CONDITION On February 22, 2005, Century Aluminum Company (the "Company") issued an earnings release announcing its results of operations for the quarter ended December 31, 2004. A copy of the Company's earnings release is attached hereto as Exhibit 99.1. The Company will hold a conference call on Wednesday February 23, 2004, at 2:00 P.M. Eastern Time to discuss the earnings. The dial-in number within the United States is (888) 428-4479 and the International dial-in number is (651) 224-7472. Using these call-in numbers will permit callers to ask questions of the Company's management. A playback number has been established for those unable to participate in the conference call. Playback begins at 7:45 p.m. Eastern Time on Wednesday, February 23, 2005, and ends at 11:59 p.m. Eastern Time on Friday, February 25, 2005. The playback number within the United States is (800) 475-6701 and International (320) 365-3844, the access code is 766289. After February 25, 2005, 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. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (C) EXHIBITS The following exhibits are filed with this report:
Exhibit Number Description - ------- ----------- 99.1 Press Release, dated February 22, 2005, announcing the Company results of operations for the quarter ended December 31, 2004.
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: February 23, 2005 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 Press Release, dated February 22, 2005, announcing the Company results of operations for the quarter ended December 31, 2004.
4 EX-99.1 2 y06094exv99w1.txt PRESS RELEASE NEWS RELEASE [CENTURY ALUMINUM LOGO] CENTURY REPORTS 2004 FINANCIAL RESULTS MONTEREY, CA. Feb. 22, 2005 - Century Aluminum Company (NASDAQ:CENX) today reported fourth quarter net income of $20.9 million, or $0.65 a common share. The equipment failure at the St. Ann bauxite mine in Jamaica had an estimated negative impact on fourth quarter net income of $2.2 million, or $0.07 a common share. The company reported a net loss of $6.3 million, or $0.32 a share after preferred dividends for the fourth quarter of 2003. The 2003 quarter included net after-tax charges of $6.3 million, or $0.30 a share, for mark-to-market adjustments, the departure of an executive and an after-tax credit for lower of cost or market inventory adjustments. Sales for the fourth quarter of 2004 were $290.6 million compared with $205.8 million for the fourth quarter of 2003. Shipments of primary aluminum for the 2004 fourth quarter were 346.7 million pounds, up over 20 percent from 286.9 million pounds shipped in the year-ago quarter. For all of 2004, Century reported net income of $28.0 million, or $0.95 a common share after preferred dividends. Total year results include a charge for the early extinguishment of debt, $31.0 million after-tax, or $1.08 a common share. In 2003, net income totaled $1.0 million with a loss of $0.05 a common share after preferred dividends. Sales for 2004 were $1.06 billion compared with $782.5 million for 2003, and total 2004 primary aluminum shipments of 1.32 billion pounds were up 17 percent from the 1.13 billion pounds shipped in 2003. Financial and operating results for 2004 include Nordural from the April 27, 2004, acquisition date. "2004 was an outstanding year for Century Aluminum Company," said chairman and chief executive officer Craig A. Davis. "We benefited from robust aluminum prices. Primary aluminum production, shipments and sales were all-time records. We completed the acquisition of the Nordural plant in Iceland and plan to more than double its capacity to 212,000 metric tons per year (mtpy) by 2006. In the strong markets that prevailed during the fourth quarter, we were able to put in place a significant five-year forward sale. At the same time, a substantial portion of our capacity remains unhedged, allowing us to participate in the event of even stronger markets in the future. We also acquired an interest in bauxite and alumina assets that will ensure supply to our Hawesville, KY reduction plant." "We continued to improve our financial flexibility by strengthening our balance sheet and significantly reducing our annual interest expense. For the full year of 2004 we generated cash from operating activities of $105.8 million, an increase of over 21 percent from 2003. Our operating income grew to $151.6 million, a five-fold increase from 2003." 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 49.67-percent interest in a 222,000-mtpy reduction plant at Mt. Holly, SC. Alcoa Inc. owns the remainder of the Mt. Holly plant and is the operating partner. Century also owns a 90,000 mtpy plant at Grundartangi, Iceland, and will expand that plant to 212,000 mtpy by 2006. After the completion of the 122,000 mtpy Iceland expansion, Century will own 737,000 mtpy of primary aluminum capacity. In addition, Century holds a 50 percent share of the 1.25 million mtpy Gramercy Alumina Plant in Gramercy, LA. 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. Century Aluminum Company, Monterey, California Michael Dildine, 831-642-9364 CENTURY ALUMINUM COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (in Thousands, Except Per Share Amounts) (Unaudited)
THREE MONTHS ENDED YEAR ENDED DECEMBER 31 DECEMBER 31 ----------- ----------- 2004 2003 2004 2003 ---- ---- ---- ---- NET SALES: Third-party customers .................................. $ 248,260 $ 173,306 $ 897,538 $ 660,593 Related parties ........................................ 42,343 32,509 163,209 121,886 ----------- ----------- ----------- ----------- 290,603 205,815 1,060,747 782,479 COST OF GOODS SOLD ....................................... 239,738 183,298 884,273 734,441 ----------- ----------- ----------- ----------- GROSS PROFIT ............................................. 50,865 22,517 176,474 48,038 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ............. 7,950 8,683 24,916 20,833 ----------- ----------- ----------- ----------- OPERATING INCOME ......................................... 42,915 13,834 151,558 27,205 INTEREST INCOME (EXPENSE) - Net .......................... (7,212) (10,893) (39,240) (43,509) NET GAIN (LOSS) ON FORWARD CONTRACTS ..................... (4,375) (12,732) (21,521) 25,691 LOSS ON EARLY EXTINGUISHMENT OF DEBT ..................... -- -- (47,448) -- OTHER INCOME (EXPENSE) ................................... (696) (179) (1,305) (688) ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE INCOME TAXES ........................ 30,632 (9,970) 42,044 8,699 INCOME TAX (EXPENSE) BENEFIT ............................. (10,521) 3,715 (14,894) (2,841) ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE MINORITY INTEREST AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE .... 20,111 (6,255) 27,150 5,858 MINORITY INTEREST ........................................ -- -- -- 986 EQUITY IN EARNINGS OF JOINT VENTURES ..................... 821 -- 821 -- ----------- ----------- ----------- ----------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ......................... 20,932 (6,255) 27,971 6,844 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $34 MILLION ........... -- -- -- (5,878) ----------- ----------- ----------- ----------- NET INCOME (LOSS) ........................................ 20,932 (6,255) 27,971 966 PREFERRED DIVIDENDS ...................................... -- (500) (769) (2,000) ----------- ----------- ----------- ----------- NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS ...... $ 20,932 $ (6,755) $ 27,202 $ (1,034) =========== =========== =========== =========== EARNINGS (LOSS) PER COMMON SHARE Basic - Before cumulative effect of change in accounting principle .............................................. $ 0.65 $ (0.32) $ 0.95 $ 0.23 Basic - Cumulative effect of change in accounting principle .............................................. $ -- $ -- $ -- $ (0.28) ----------- ----------- ----------- ----------- Basic - Net income (loss) .............................. $ 0.65 $ (0.32) $ 0.95 $ (0.05) =========== =========== =========== =========== Diluted - Before cumulative effect of change in accounting principle ................................. $ 0.65 $ (0.32) $ 0.95 $ 0.23 Diluted - Cumulative effect of change in accounting principle ............................................ $ -- $ -- $ -- $ (0.28) ----------- ----------- ----------- ----------- Diluted - Net income (loss) ............................ $ 0.65 $ (0.32) $ 0.95 $ (0.05) =========== =========== =========== =========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic .................................................. 32,024 21,083 28,668 21,073 Diluted ................................................ 32,099 21,083 28,775 21,099
SEE NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS CENTURY ALUMINUM COMPANY NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS (in Thousands, Except Per Share Amounts) (Unaudited) 2003 Cost of Goods Sold includes a credit of $5,905 and $7,522 for net lower of cost or market inventory adjustments in the quarter and year to date respectively. Selling, General & Administrative expenses includes a charge of $3,132 for the quarter and year to date for the acceleration of vested compensation benefits related to an executive resignation. CENTURY ALUMINUM COMPANY CONSOLIDATED BALANCE SHEETS (Dollars in Thousands) (Unaudited)
DECEMBER 31, DECEMBER 31, 2004 2003 ---- ---- ASSETS CURRENT ASSETS: Cash ......................................................................... $ 44,168 $ 28,204 Restricted cash .............................................................. 1,678 -- Accounts receivable - net .................................................... 79,576 51,370 Due from affiliates .......................................................... 14,371 10,957 Inventories .................................................................. 108,555 89,360 Prepaid and other assets ..................................................... 10,055 4,101 Deferred taxes - current portion ............................................. 20,000 3,413 ----------- ----------- Total current assets ....................................................... 278,403 187,405 Property, plant and equipment - net ............................................ 806,250 494,957 Intangible asset - net ......................................................... 86,809 99,136 Goodwill ....................................................................... 95,610 -- Other assets ................................................................... 58,110 28,828 ----------- ----------- Total ...................................................................... $ 1,325,182 $ 810,326 =========== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable, trade ...................................................... $ 47,479 $ 34,829 Due to affiliates ............................................................ 84,815 27,139 Accrued and other current liabilities ........................................ 52,665 30,154 Accrued employee benefits costs - current portion ............................ 8,458 8,934 Convertible senior notes ..................................................... 175,000 -- Industrial revenue bonds ..................................................... 7,815 7,815 Long term debt - current portion ............................................. 5,681 -- ----------- ----------- Total current liabilities .................................................. 381,913 108,871 Senior secured notes payable - net ............................................. 9,879 322,310 Senior unsecured notes payable ................................................. 250,000 -- Nordural debt .................................................................. 75,733 -- Note payable - affiliates ...................................................... -- 14,000 Accrued pension benefit costs - less current portion ........................... 10,685 10,764 Accrued postretirement benefits costs - less current portion ................... 85,549 78,218 Other liabilities .............................................................. 34,961 33,372 Due to affiliates - less current portion ....................................... 30,416 -- Deferred taxes ................................................................. 63,229 55,094 ----------- ----------- Total noncurrent liabilities ............................................... 560,452 513,758 SHAREHOLDERS' EQUITY: Convertible preferred stock (80% cumulative, 0 and 500,000 shares outstanding at December 31, 2004 and December 31, 2003, respectively) ................... -- 25,000 Common stock (one cent par value, 50,000,000 shares authorized; 32,038,297 shares outstanding at December 31, 2004 and 21,130,839 at December 31, 2003) 320 211 Additional paid-in capital ................................................... 415,453 173,138 Other comprehensive loss ..................................................... (52,186) (5,222) Retained earnings (accumulated deficit) ...................................... 19,230 (5,430) ----------- ----------- Total shareholders' equity ................................................. 382,817 187,697 ----------- ----------- Total ...................................................................... $ 1,325,182 $ 810,326 =========== ===========
CENTURY ALUMINUM COMPANY CONSOLIDATED STATEMENTS OF CASH FLOW (Dollars in Thousands) (Unaudited)
YEAR ENDED DECEMBER 31 ---------------------- 2004 2003 --------- --------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 27,971 $ 966 Adjustments to reconcile net income to net cash provided by operating activities: Unrealized loss on forward contracts 2,405 6,325 Depreciation and amortization 50,254 51,264 Deferred income taxes 6,623 8,892 Pension and other postretirement benefits 8,040 10,986 Workers' compensation 820 1,426 Inventory market adjustment (2,273) (7,522) Loss on disposal of assets 761 1,040 Minority Interest -- (986) Cumulative effect of change in accounting principle -- 9,308 Non-cash loss on early extinguishment of debt 9,659 -- Change in operating assets and liabilities: Accounts receivable - net (19,440) (5,130) Due from affiliates (3,623) (2,155) Inventories (4,937) (2,762) Prepaids and other assets (3,590) (261) Accounts payable, trade 2,602 (2,928) Due to affiliates 16,179 3,660 Accrued and other current liabilities 15,507 2,211 Other - net (1,130) 13,045 --------- --------- Net cash provided by operating activities 105,828 87,379 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (15,240) (18,858) Nordural expansion (59,784) -- Acquisitions (198,584) (59,837) Restricted cash deposits (1,678) -- --------- --------- Net cash used in investing activities (275,286) (78,695) CASH FLOWS FROM FINANCING ACTIVITIES: Borrowings 425,883 -- Repayment of third party debt (425,881) -- Repayment of related party debt (14,000) (26,000) Financing fees (13,062) (297) Dividends (3,311) (11) Issuance of common stock 215,793 736 --------- --------- Net cash provided by (used in) financing activities 185,422 (25,572) NET INCREASE (DECREASE) IN CASH 15,964 (16,888) CASH, BEGINNING OF PERIOD 28,204 45,092 --------- --------- CASH, END OF PERIOD $ 44,168 $ 28,204 ========= =========
CENTURY ALUMINUM COMPANY SELECTED OPERATING DATA (in Thousands, Except Dollars per Pound) (Unaudited) SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll -------------------- -------------------- Pounds $/Pound Pounds Revenue --------- ------- ------- --------- 2004 4th Quarter 295,287 $0.87 51,421 $ 33,077 3rd Quarter 292,978 $0.83 51,218 $ 30,908 2nd Quarter 294,816 $0.82 35,600 $ 21,413 1st Quarter 296,743 $0.78 -- $ -- --------- ------- ------- --------- Total 1,179,824 $0.83 138,239 $ 85,398 2003 4th Quarter 286,912 $0.72 -- -- 3rd Quarter 292,567 $0.69 -- -- 2nd Quarter 290,023 $0.68 -- -- 1st Quarter 257,040 $0.70 -- -- --------- ------- ------- --------- Total 1,126,542 $0.69 -- --
(1) Does not include Toll shipments from Nordural FORWARD PRICED SALES - AS OF DECEMBER 31, 2004
2005(1) 2006(2) 2007(2) 2008-2010(3) ------- ------- ------- ----------- Pounds 435,073 370,266 374,565 515,882
(1) The forward priced sales in 2005 exclude January 2005 shipments to customers that are priced based upon the prior month's market price. (2) The forward priced sales in 2006 and 2007 may increase by up to 55,556 and 111,113 pounds, respectively, depending on the market price in the month of sale. (3) The forward priced sales in 2008 through 2010 may increase by up to 496,040 pounds depending on the market price in the month of sale. -----END PRIVACY-ENHANCED MESSAGE-----