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 22, 2018 |
CENTURY ALUMINUM COMPANY | ||||
Date: | February 22, 2018 | By: | /s/ STEPHEN K. HEYROTH | |
Name: | Stephen K. Heyroth | |||
Title: | Vice President and Chief Accounting Officer |
• | Net income of $35.8 million, or $0.37 per diluted share |
• | Adjusted net income1 of $24.8 million and Adjusted EPS of $0.26 |
• | Adjusted EBITDA1 of $60.2 million, up $12.3 million sequentially on higher LME prices, partially offset by higher raw material costs |
• | Net sales of $433.8 million, an 8% increase over prior quarter |
• | Net income of $48.6 million, or $0.51 per diluted share |
• | Adjusted net income1 of $34.7 million and Adjusted EPS of $0.36 |
• | Adjusted EBITDA1 of $164.2 million, up significantly from the prior year on higher LME prices, partially offset by higher raw material costs and lower product premiums |
• | Net sales of $1,589.1 million, a 20% increase over the prior year |
$MM (except shipments and per share data) | |||||||||||||||||
Q3 2017 | Q4 2017 | FY 2016 | FY 2017 | ||||||||||||||
Shipments (tonnes) | 184,974 | 189,000 | 733,825 | 743,198 | |||||||||||||
Net Sales | $ | 400.6 | $ | 433.8 | $ | 1,319.1 | $ | 1,589.1 | |||||||||
Net Income/(Loss) | 20.8 | 35.8 | (252.4 | ) | 48.6 | ||||||||||||
Diluted EPS | 0.22 | 0.37 | (2.90 | ) | 0.51 | ||||||||||||
Adjusted Net Income/(Loss)1 | 14.4 | 24.8 | (67.1 | ) | 34.7 | ||||||||||||
Adjusted EPS1 | 0.15 | 0.26 | (0.71 | ) | 0.36 | ||||||||||||
Adjusted EBITDA1 | 47.9 | 60.2 | 29.0 | 164.2 | |||||||||||||
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 | |||||||||||
December 31, | September 30, | December 31, | |||||||||
2016 | 2017 | 2017 | |||||||||
NET SALES: | |||||||||||
Related parties | $ | 306,860 | $ | 299,235 | $ | 321,997 | |||||
Other customers | 32,976 | 101,410 | 111,850 | ||||||||
Total net sales | 339,836 | 400,645 | 433,847 | ||||||||
Cost of goods sold | 334,779 | 359,243 | 385,955 | ||||||||
Gross profit | 5,057 | 41,402 | 47,892 | ||||||||
Selling, general and administrative expenses | 10,961 | 13,994 | 11,398 | ||||||||
Helguvik losses/(gains) | 152,220 | — | (7,310 | ) | |||||||
Ravenswood (gains) | — | (5,500 | ) | — | |||||||
Other operating expense - net | 1,520 | 437 | 521 | ||||||||
Operating (loss)/income | (159,644 | ) | 32,471 | 43,283 | |||||||
Interest expense | (5,695 | ) | (5,542 | ) | (5,600 | ) | |||||
Interest income | 283 | 422 | 462 | ||||||||
Net gain/(loss) on forward and derivative contracts | 489 | (3,888 | ) | 519 | |||||||
Other income/(expense) - net | 1,781 | 427 | (96 | ) | |||||||
(Loss)/Income before income taxes and equity in earnings of joint ventures | (162,786 | ) | 23,890 | 38,568 | |||||||
Income tax expense | (6,061 | ) | (3,321 | ) | (3,118 | ) | |||||
(Loss)/Income before equity in earnings of joint ventures | (168,847 | ) | 20,569 | 35,450 | |||||||
Equity in earnings of joint ventures | 383 | 214 | 355 | ||||||||
Net (loss)/income | $ | (168,464 | ) | $ | 20,783 | $ | 35,805 | ||||
Net (loss)/income allocated to common stockholders | $ | (168,464 | ) | $ | 19,132 | $ | 32,963 | ||||
(LOSS)/INCOME PER COMMON SHARE: | |||||||||||
Basic | $ | (1.93 | ) | $ | 0.22 | $ | 0.38 | ||||
Diluted | $ | (1.93 | ) | $ | 0.22 | $ | 0.37 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 87,079 | 87,318 | 87,334 | ||||||||
Diluted | 87,079 | 88,255 | 88,164 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in thousands, except per share amounts) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
December 31, | December 31, | ||||||
2016 | 2017 | ||||||
NET SALES: | |||||||
Related parties | $ | 1,178,631 | $ | 1,198,076 | |||
Other customers | 140,463 | 391,004 | |||||
Total net sales | 1,319,094 | 1,589,080 | |||||
Cost of goods sold | 1,330,136 | 1,460,475 | |||||
Gross (loss)/profit | (11,042 | ) | 128,605 | ||||
Selling, general and administrative expenses | 40,264 | 45,446 | |||||
Helguvik losses/(gains) | 152,220 | (7,310 | ) | ||||
Ravenswood losses/(gains) | 26,830 | (5,500 | ) | ||||
Other operating expense - net | 3,857 | 2,111 | |||||
Operating (loss)/income | (234,213 | ) | 93,858 | ||||
Interest expense | (22,216 | ) | (22,174 | ) | |||
Interest income | 758 | 1,397 | |||||
Net gain/(loss) on forward and derivative contracts | 3,487 | (16,549 | ) | ||||
Other income/(expense) - net | 1,319 | (1,161 | ) | ||||
(Loss)/income before income taxes and equity in earnings of joint ventures | (250,865 | ) | 55,371 | ||||
Income tax expense | (2,824 | ) | (7,583 | ) | |||
(Loss)/income before equity in earnings of joint ventures | (253,689 | ) | 47,788 | ||||
Equity in earnings of joint ventures | 1,274 | 792 | |||||
Net (loss)/income | $ | (252,415 | ) | $ | 48,580 | ||
Net (loss)/income allocated to common stockholders | $ | (252,415 | ) | $ | 44,714 | ||
(LOSS)/EARNINGS PER COMMON SHARE: | |||||||
Basic | $ | (2.90 | ) | $ | 0.51 | ||
Diluted | $ | (2.90 | ) | $ | 0.51 | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 87,064 | 87,295 | |||||
Diluted | 87,064 | 88,020 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in thousands, except share amounts) | |||||||
(Unaudited) | |||||||
December 31, 2016 | December 31, 2017 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 132,403 | $ | 167,211 | |||
Restricted cash | 1,050 | 848 | |||||
Accounts receivable - net | 12,432 | 43,071 | |||||
Due from affiliates | 16,651 | 10,366 | |||||
Inventories | 233,563 | 317,469 | |||||
Prepaid and other current assets | 22,210 | 14,709 | |||||
Assets held for sale | 22,313 | — | |||||
Total current assets | 440,622 | 553,674 | |||||
Property, plant and equipment - net | 1,026,285 | 971,916 | |||||
Other assets | 73,420 | 56,051 | |||||
TOTAL | $ | 1,540,327 | $ | 1,581,641 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 94,960 | $ | 89,931 | |||
Due to affiliates | 15,368 | 20,369 | |||||
Accrued and other current liabilities | 50,100 | 61,398 | |||||
Accrued employee benefits costs | 10,917 | 11,004 | |||||
Industrial revenue bonds | 7,815 | 7,815 | |||||
Total current liabilities | 179,160 | 190,517 | |||||
Senior notes payable | 247,699 | 248,153 | |||||
Accrued pension benefits costs - less current portion | 49,493 | 38,929 | |||||
Accrued postretirement benefits costs - less current portion | 126,355 | 112,996 | |||||
Other liabilities | 72,026 | 57,927 | |||||
Deferred taxes | 108,939 | 103,476 | |||||
Total noncurrent liabilities | 604,512 | 561,481 | |||||
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 74,364 outstanding at December 31, 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; 94,731,298 issued and 87,544,777 outstanding at December 31, 2017) | 944 | 947 | |||||
Additional paid-in capital | 2,515,131 | 2,517,385 | |||||
Treasury stock, at cost | (86,276 | ) | (86,276 | ) | |||
Accumulated other comprehensive loss | (113,893 | ) | (91,742 | ) | |||
Accumulated deficit | (1,559,252 | ) | (1,510,672 | ) | |||
Total shareholders’ equity | 756,655 | 829,643 | |||||
TOTAL | $ | 1,540,327 | $ | 1,581,641 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in thousands) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
December 31, | December 31, | ||||||
2016 | 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net (loss)/income | $ | (252,415 | ) | $ | 48,580 | ||
Adjustments to reconcile net (loss)/income to net cash provided by operating activities: | |||||||
Unrealized gain on contingent obligation | (1,411 | ) | (1,411 | ) | |||
Lower of cost or NRV inventory adjustment | (660 | ) | (1,073 | ) | |||
Depreciation and amortization | 84,780 | 84,249 | |||||
Helguvik losses/(gains) | 152,220 | (7,310 | ) | ||||
Ravenswood losses/(gains) | 3,830 | (5,500 | ) | ||||
Pension and other postretirement benefits | 2,863 | (1,772 | ) | ||||
Deferred income taxes | (893 | ) | (4,610 | ) | |||
Stock-based compensation | 1,502 | 1,851 | |||||
Change in operating assets and liabilities: | |||||||
Accounts receivable - net | (2,957 | ) | (30,639 | ) | |||
Due from affiliates | 766 | 6,285 | |||||
Inventories | 919 | (67,534 | ) | ||||
Prepaid and other current assets | 18,313 | 7,796 | |||||
Accounts payable, trade | 2,271 | 4,746 | |||||
Due to affiliates | 7,212 | 4,833 | |||||
Accrued and other current liabilities | (3,900 | ) | 14,478 | ||||
Ravenswood retiree medical settlement | 23,000 | (5,000 | ) | ||||
Other - net | 2,474 | 3,790 | |||||
Net cash provided by operating activities | 37,914 | 51,759 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (21,944 | ) | (31,839 | ) | |||
Proceeds from sales of property, plant & equipment | 1,040 | 14,484 | |||||
Net cash used in investing activities | (20,904 | ) | (17,355 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 1,179 | 1,281 | |||||
Repayments under revolving credit facilities | (1,179 | ) | (1,281 | ) | |||
Issuance of common stock | — | 404 | |||||
Net cash provided by financing activities | — | 404 | |||||
CHANGE IN CASH AND CASH EQUIVALENTS | 17,010 | 34,808 | |||||
Cash and cash equivalents, beginning of period | 115,393 | 132,403 | |||||
Cash and cash equivalents, end of period | $ | 132,403 | $ | 167,211 |
SHIPMENTS - PRIMARY ALUMINUM1 | |||||||||||||||||||||
United States | Iceland | Total | |||||||||||||||||||
Tonnes | Sales $ (000) | Tonnes | Sales $ (000) | Tonnes | Sales $ (000) | ||||||||||||||||
2017 | |||||||||||||||||||||
4th Quarter | 108,754 | $ | 253,485 | 80,246 | $ | 178,705 | 189,000 | $ | 432,190 | ||||||||||||
3rd Quarter | 106,192 | $ | 235,831 | 78,782 | $ | 161,051 | 184,974 | $ | 396,882 | ||||||||||||
2016 | |||||||||||||||||||||
4th Quarter | 103,186 | $ | 198,202 | 80,024 | $ | 141,090 | 183,210 | $ | 339,292 | ||||||||||||
Full Year 2017 | 425,669 | $ | 929,573 | 317,529 | $ | 650,747 | 743,198 | $ | 1,580,320 | ||||||||||||
Full Year 2016 | 422,139 | $ | 799,174 | 311,686 | $ | 510,184 | 733,825 | $ | 1,309,358 |
Three months ended | Three months ended | |||||||||||||||
September 30, 2017 | December 31, 2017 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net income as reported | $ | 20.8 | $ | 0.22 | $ | 35.8 | $ | 0.37 | ||||||||
Forward and derivative contracts | (0.9 | ) | (0.01 | ) | (6.8 | ) | (0.07 | ) | ||||||||
Helguvik gains | — | — | (7.3 | ) | (0.08 | ) | ||||||||||
Ravenswood gains | (5.5 | ) | (0.06 | ) | — | — | ||||||||||
Lower of cost or NRV inventory adjustment | — | — | 3.1 | 0.04 | ||||||||||||
Adjusted net income | $ | 14.4 | $ | 0.15 | $ | 24.8 | $ | 0.26 |
Three Months Ended | Three Months Ended | |||||||
September 30, 2017 | December 31, 2017 | |||||||
Net income | $ | 20.8 | $ | 35.8 | ||||
Interest expense | 5.5 | 5.6 | ||||||
Interest income | (0.4 | ) | (0.5 | ) | ||||
Net loss/(gain) on forward and derivative contracts | 3.9 | (0.5 | ) | |||||
Other (income)/expense - net | (0.4 | ) | 0.1 | |||||
Income tax expense | 3.3 | 3.1 | ||||||
Equity in earnings of joint ventures | (0.2 | ) | (0.4 | ) | ||||
Operating income | $ | 32.5 | $ | 43.3 | ||||
Helguvik gains | — | (7.3 | ) | |||||
Ravenswood gains | (5.5 | ) | — | |||||
Lower of cost or NRV inventory adjustment | — | 3.1 | ||||||
Depreciation and amortization | 20.9 | 21.2 | ||||||
Adjusted EBITDA | $ | 47.9 | $ | 60.2 |
Twelve months ended | Twelve months ended | |||||||||||||||
December 31, 2016 | December 31, 2017 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net (loss)/income as reported | $ | (252.4 | ) | $ | (2.90 | ) | $ | 48.6 | $ | 0.51 | ||||||
Helguvik losses/(gains) | 152.2 | 1.75 | (7.3 | ) | (0.08 | ) | ||||||||||
Ravenswood losses/(gains) | 26.8 | 0.31 | (5.5 | ) | (0.06 | ) | ||||||||||
Lower of cost or NRV inventory adjustment | (0.7 | ) | (0.01 | ) | (1.1 | ) | (0.01 | ) | ||||||||
Discrete tax item | 6.9 | 0.08 | — | — | ||||||||||||
Impact of preferred shares | — | 0.06 | — | — | ||||||||||||
Adjusted net income | $ | (67.1 | ) | $ | (0.71 | ) | $ | 34.7 | $ | 0.36 |
Twelve Months Ended | Twelve Months Ended | |||||||
December 31, 2016 | December 31, 2017 | |||||||
Net (loss)/income | $ | (252.4 | ) | $ | 48.6 | |||
Interest expense | 22.2 | 22.2 | ||||||
Interest income | (0.8 | ) | (1.4 | ) | ||||
Net (gain)/loss on forward and derivative contracts | (3.5 | ) | 16.5 | |||||
Other (income)/expense - net | (1.3 | ) | 1.2 | |||||
Income tax expense | 2.8 | 7.6 | ||||||
Equity in earnings of joint ventures | (1.3 | ) | (0.8 | ) | ||||
Operating income | $ | (234.2 | ) | $ | 93.9 | |||
Helguvik losses/(gains) | 152.2 | (7.3 | ) | |||||
Ravenswood losses/(gains) | 26.8 | (5.5 | ) | |||||
Lower of cost or NRV inventory adjustment | (0.7 | ) | (1.1 | ) | ||||
Depreciation and amortization | 84.8 | 84.2 | ||||||
Adjusted EBITDA | $ | 29.0 | $ | 164.2 |