-----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, EBUW4SXUVl3+YFz8h1fYyUma5Ns+YHrVqMUEafitpRB0tjv/T55fp1DkMV01EeLQ IMTeBdZtzgaPYfY5ioibcw== 0001169232-03-004858.txt : 20030731 0001169232-03-004858.hdr.sgml : 20030731 20030731111903 ACCESSION NUMBER: 0001169232-03-004858 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030730 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030731 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: 03813435 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 d56421_8-k.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 30, 2003 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 30, 2003 Item 12. Results of Operations and Financial Condition. On July 30, 2003, Century Aluminum Company (the "Company") issued an earnings release announcing its results of operations for the quarter ended June 30, 2003. A copy of the Company's earnings release is attached hereto as Exhibit 99.1. 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 31, 2003 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 30, 2003 -4- EX-99.1 3 d56421_ex99-1.txt EARNINGS RELEASE EXHIBIT 99.1 ---------------------------------------------------------------------- / NEWS RELEASE ----------------------------------------------------------------------- CenturyALUMINUM Century Reports Second Quarter 2003 Results Monterey, CA, July 30, 2003 - Century Aluminum Company (NASDAQ:CENX) reported a net loss of $5.0 million, or $0.26 a common share after preferred dividends, for the second quarter of 2003. The net loss for the second quarter of 2002 was $4.6 million, or $0.25 a common share after preferred dividends. The results for the two quarters are not comparable. The second quarter 2003 results exclude the beneficial effects of the above-market, 110-million pound annual metal delivery contract that remains in place for 2003 and 2004. In compliance with FAS No.133, Accounting for Derivative Instruments and Hedging Activities, the company marked the entire contract to market in the first quarter of 2003, resulting in an after-tax gain of $10.0 million in that quarter. The loss in the second quarter of 2003 would have been reduced by $2.2 million, after tax, or $0.10 a share had the company accounted for the contract on the same basis as last year. The second quarter of 2003 also includes the results from the acquisition of the 20% interest in the Hawesville (KY) facility on April 1, 2003. Sales in the second quarter of 2003 were $196.2 million compared with $180.3 million in the second quarter of 2002. Shipments of primary aluminum in the recent quarter were 290.0 million pounds compared with 262.5 million pounds in the year-ago quarter. Net income for the first six months of 2003 was $12.6 million, or $0.56 a share, fully diluted. This compares with a net loss of $8.1 million, or $0.44 a common share after preferred dividends, in the year-ago period. Sales in the first six months of 2003 were $375.2 million, compared with $359.4 million in the year-ago period. Shipments of primary aluminum for the 2003 period were 547.1 million pounds compared with 525.5 million pounds in the year-ago period. Commenting on the company's performance, Gerald A. Meyers, Century President and Chief Executive Officer, said: "Our performance improved over the previous and year-ago quarter after taking into account that second quarter 2003 results exclude the benefits of the above-market, metal delivery contract and the first quarter 2003 results include the mark-to-market gain associated with this contract. Our improved performance is due to progress in reducing costs and the acquisition of the remaining 20-percent share in the Hawesville (KY) Operations -- our lowest cost facility. Weak and uncertain economic conditions continue to depress aluminum markets and metal prices. While we continue to report losses in -more- this pricing environment, Century remains cash-flow positive in 2003 from on-going operations." Century owns 525,000 metric tons per year (mtpy) of primary aluminum capacity. It owns and operates the 170,000-mtpy plant at Ravenswood, WV and the 244,000-mtpy plant at Hawesville, KY. Century also owns a 49.67 percent interest in the 222,000-mtpy reduction plant at Mt. Holly, SC. Alcoa, Inc. owns the remainder and is the operating partner. Century's headquarters are in Monterey, CA. Century's press releases may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The company cautions that such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. Actual results may vary materially from those expressed or implied in the forward-looking statements as a result of various factors. Editorial contact: A. T. Posti (831) 642-9364 2 Century Aluminum Company Consolidated Statements of Operations (in Thousands, Except Per Share Amounts) (Unaudited)
Three months ended Six months ended June 30, June 30, ----------------------- ----------------------- 2003 2002 2003 2002 --------- --------- --------- --------- NET SALES: Third-party customers ................................................ $ 163,746 $ 148,377 $ 317,201 $ 302,576 Related parties ...................................................... 32,421 31,959 57,975 56,860 --------- --------- --------- --------- 196,167 180,336 375,176 359,436 COST OF GOODS SOLD ........................................................ 188,391 175,380 359,694 347,172 --------- --------- --------- --------- GROSS PROFIT .............................................................. 7,776 4,956 15,482 12,264 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES .............................. 4,086 3,761 8,221 7,938 --------- --------- --------- --------- OPERATING INCOME .......................................................... 3,690 1,195 7,261 4,326 INTEREST INCOME (EXPENSE) - Net ........................................... (11,285) (9,838) (21,358) (20,026) NET GAIN ON FORWARD CONTRACTS ............................................. 211 -- 41,904 -- OTHER EXPENSE ............................................................. (770) (132) (500) (102) --------- --------- --------- --------- INCOME (LOSS) BEFORE INCOME TAXES ......................................... (8,154) (8,775) 27,307 (15,802) INCOME TAX (EXPENSE) BENEFIT .............................................. 3,147 2,862 (9,827) 5,108 --------- --------- --------- --------- INCOME (LOSS) BEFORE MINORITY INTEREST AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE .................... (5,007) (5,913) 17,480 (10,694) MINORITY INTEREST ......................................................... -- 1,313 986 2,626 --------- --------- --------- --------- INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ......................................... (5,007) (4,600) 18,466 (8,068) CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX BENEFIT OF $3.4 MILLION .......................... -- -- (5,878) -- --------- --------- --------- --------- NET INCOME (LOSS) ......................................................... (5,007) (4,600) 12,588 (8,068) PREFERRED DIVIDENDS ....................................................... (500) (500) (1,000) (1,000) --------- --------- --------- --------- NET INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS ....................... $ (5,507) $ (5,100) $ 11,588 $ (9,068) ========= ========= ========= ========= EARNINGS (LOSS) PER COMMON SHARE Basic - Before cumulative effect of change in accounting principle .... $ (0.26) $ (0.25) $ 0.83 $ (0.44) Basic - Cumulative effect of change in accounting principle ........... $ -- $ -- $ (0.28) $ -- --------- --------- --------- --------- Basic - Net income (loss) ............................................. $ (0.26) $ (0.25) $ 0.55 $ (0.44) ========= ========= ========= ========= Diluted - Before cumulative effect of change in accounting principle .. $ (0.26) $ (0.25) $ 0.82 $ (0.44) Diluted - Cumulative effect of change in accounting principle ......... $ -- $ -- $ (0.26) $ -- --------- --------- --------- --------- Diluted - Net income (loss) ........................................... $ (0.26) $ (0.25) $ 0.56 $ (0.44) ========= ========= ========= ========= WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic ................................................................ 21,070 20,554 21,070 20,554 Diluted .............................................................. 21,070 20,554 22,465 20,554 DIVIDENDS PER COMMON SHARE ................................................ $ -- $ 0.05 $ -- $ 0.10
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 $295 and $394 for net LCM inventory adjustments in the quarter and year to date respectively. 2002 Cost of Goods Sold includes a charge of $717 and a credit of $756 for net LCM inventory adjustments in the quarter and year to date respectively. Century Aluminum Company Consolidated Balance Sheets (Dollars in Thousands) (Unaudited)
June 30, December 31, ASSETS 2003 2002 --------- ------------ Current Assets: Cash and cash equivalents ...................................................... $ 24,375 $ 45,092 Accounts receivable - net ...................................................... 50,418 46,240 Due from affiliates ............................................................ 20,393 22,732 Inventories .................................................................... 73,736 77,135 Prepaid and other current assets ............................................... 15,580 4,777 --------- --------- Total current assets ...................................................... 184,502 195,976 Property, Plant and Equipment - Net ................................................. 504,588 417,621 Intangible Asset - Net .............................................................. 108,304 119,744 Due from Affiliates - Less current portion .......................................... 97 974 Other Assets ........................................................................ 32,028 30,852 --------- --------- Total ..................................................................... $ 829,519 $ 765,167 ========= ========= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable, trade ........................................................ $ 34,573 $ 37,757 Due to affiliates .............................................................. 16,335 15,811 Industrial revenue bonds ....................................................... 7,815 7,815 Accrued and other current liabilities .......................................... 27,249 24,114 Accrued employee benefits costs - current portion .............................. 10,955 10,890 Deferred taxes - current portion ............................................... 3,399 4,971 --------- --------- Total current liabilities ................................................. 100,326 101,358 Senior Secured Notes Payable - Net .................................................. 322,075 321,852 Note Payable - Affiliates ........................................................... 40,000 -- Accrued Pension Benefit Costs - Less current portion ................................ 12,585 10,751 Accrued Postretirement Benefits Costs - Less current portion ........................ 74,654 70,656 Other Liabilities ................................................................... 33,976 8,376 Deferred Taxes - Less current portion ............................................... 46,336 41,376 --------- --------- Total noncurrent liabilities .............................................. 529,626 453,011 Minority Interest ................................................................... -- 18,666 Shareholders' Equity: Convertible Preferred Stock (8.0% cumulative, 500,000 shares outstanding) ...... 25,000 25,000 Common Stock (one cent par value, 50,000,000 shares authorized; 21,070,210 shares outstanding at June 30, 2003 and 21,054,302 at December 31, 2002) ..... 211 211 Additional Paid-In Capital ..................................................... 172,403 172,133 Accumulated Other Comprehensive Income (Loss) .................................. (4,239) 1,173 Retained Earnings (Deficit) .................................................... 6,192 (6,385) --------- --------- Total shareholders' equity ................................................ 199,567 192,132 --------- --------- Total ..................................................................... $ 829,519 $ 765,167 ========= =========
Century Aluminum Company Consolidated Statements of Cash Flow (Dollars in Thousands) (Unaudited)
Six months ended June 30, --------------------- 2003 2002 -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) .................................................... $ 12,588 $ (8,068) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Unrealized net gain on forward contracts ......................... (12,292) -- Depreciation and amortization .................................... 25,787 28,157 Deferred income taxes ............................................ 6,396 (5,201) Pension and other postretirement benefits ........................ 5,897 4,743 Inventory market adjustment ...................................... (394) (756) Loss on disposal of assets ....................................... 836 459 Minority Interest ................................................ (986) (2,625) Cumulative effect of change in accounting principle .............. 9,308 -- Change in operating assets and liabilities: Accounts receivable - net ................................... (4,178) (1,711) Due from affiliates ......................................... (4,604) 2,595 Inventories ................................................. 5,734 425 Prepaids and other assets ................................... (2,733) (2,724) Accounts payable, trade ..................................... (3,184) (1,464) Due to affiliates ........................................... 1,394 7,397 Accrued and other current liabilities ....................... 632 (105) Other - net ................................................. 9,527 (917) -------- -------- Net cash provided by operating activities ........................ 49,728 20,205 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment ............................ (10,300) (10,852) Acquisitions ......................................................... (59,837) -- -------- -------- Net cash used in investing activities ............................ (70,137) (10,852) CASH FLOWS FROM FINANCING ACTIVITIES: Financing fees ....................................................... (297) -- Dividends ............................................................ (11) (2,563) Issuance of common or preferred stock ................................ -- 5 -------- -------- Net cash provided (used) in financing activities ................. (308) (2,558) NET INCREASE (DECREASE) IN CASH ............................................ (20,717) 6,795 CASH, BEGINNING OF PERIOD .................................................. 45,092 13,388 -------- -------- CASH, END OF PERIOD ........................................................ $ 24,375 $ 20,183 ======== ========
Century Aluminum Company Selected Operating Data (in Thousands, Except Dollars per Pound) (Unaudited) SHIPMENTS - PRIMARY ALUMINUM Direct --------------------- Pounds $/Pound ------- ------- 2003 2nd Quarter 290,023 $0.68 1st Quarter 257,040 $0.70 2002 2nd Quarter 262,470 $0.69 1st Quarter 263,019 $0.68 -----END PRIVACY-ENHANCED MESSAGE-----