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 | 60606 |
(Address of Principal Executive Offices) | (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)) |
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: |
Common Stock, $0.01 par value per share | CENX | Nasdaq Stock Market LLC |
(Nasdaq Global Select Market) |
Exhibit Number | Description | |||
CENTURY ALUMINUM COMPANY | ||||
Date: | August 1, 2019 | By: | /s/ Craig Conti | |
Name: | Craig Conti | |||
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
• | Shipments of 203,380 tonnes, a 1% decrease over prior quarter driven by timing of deliveries |
• | Net sales of $473.1 million, a 3% decrease over prior quarter primarily due to lower LME prices |
• | Net loss of $20.7 million, or $0.23 per share |
• | Adjusted net loss1 of $16.2 million, or $0.17 per share |
• | Adjusted EBITDA1 of $11.7 million primarily due to lower alumina and power prices, partially offset by lower LME prices |
$MM (except shipments and per share data) | |||||||||
Q1 2019 | Q2 2019 | ||||||||
Shipments (tonnes) | 206,451 | 203,380 | |||||||
Net sales | $ | 490.0 | $ | 473.1 | |||||
Net income (loss) | (34.6 | ) | (20.7 | ) | |||||
Diluted earnings (loss) per share | (0.39 | ) | (0.23 | ) | |||||
Adjusted net income (loss)1 | (66.6 | ) | (16.2 | ) | |||||
Adjusted earnings (loss) per share1 | (0.70 | ) | (0.17 | ) | |||||
Adjusted EBITDA1 | (44.1 | ) | 11.7 | ||||||
Notes: | |||||||||
1 - Non-GAAP measure; see reconciliations of GAAP to non-GAAP financial measures |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
June 30, | March 31, | June 30, | |||||||||
2018 | 2019 | 2019 | |||||||||
NET SALES: | |||||||||||
Related parties | $ | 282.7 | $ | 311.3 | $ | 305.0 | |||||
Other customers | 187.3 | 178.7 | 168.1 | ||||||||
Total net sales | 470.0 | 490.0 | 473.1 | ||||||||
Cost of goods sold | 436.3 | 502.8 | 477.2 | ||||||||
Gross profit (loss) | 33.7 | (12.8 | ) | (4.1 | ) | ||||||
Selling, general and administrative expenses | 12.0 | 14.7 | 11.9 | ||||||||
Other operating (income) expense - net | 0.2 | 0.3 | 0.3 | ||||||||
Operating income (loss) | 21.5 | (27.8 | ) | (16.3 | ) | ||||||
Interest expense - term loan | — | — | (0.6 | ) | |||||||
Interest expense | (5.6 | ) | (5.8 | ) | (5.8 | ) | |||||
Interest income | 0.5 | 0.2 | 0.2 | ||||||||
Net gain (loss) on forward and derivative contracts | 1.2 | (5.7 | ) | 6.1 | |||||||
Other income (expense) - net | 2.1 | 1.1 | (1.7 | ) | |||||||
Income (loss) before income taxes and equity in earnings of joint ventures | 19.7 | (38.0 | ) | (18.1 | ) | ||||||
Income tax benefit (expense) | (2.3 | ) | 2.9 | 1.6 | |||||||
Income (loss) before equity in earnings of joint ventures | 17.4 | (35.1 | ) | (16.5 | ) | ||||||
Loss on sale of BHH | — | — | (4.3 | ) | |||||||
Equity in earnings of joint ventures | 2.0 | 0.5 | 0.1 | ||||||||
Net income (loss) | $ | 19.4 | $ | (34.6 | ) | $ | (20.7 | ) | |||
Net income (loss) allocated to common stockholders | $ | 17.9 | $ | (34.6 | ) | $ | (20.7 | ) | |||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||
Basic and diluted | $ | 0.20 | $ | (0.39 | ) | $ | (0.23 | ) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 87.6 | 88.1 | 88.8 | ||||||||
Diluted | 88.4 | 88.1 | 88.8 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
Six months ended June 30, | |||||||
2018 | 2019 | ||||||
NET SALES: | |||||||
Related parties | $ | 579.0 | $ | 616.4 | |||
Other customers | 345.5 | 346.8 | |||||
Total net sales | 924.5 | 963.2 | |||||
Cost of goods sold | 876.2 | 980.1 | |||||
Gross profit (loss) | 48.3 | (16.9 | ) | ||||
Selling, general and administrative expenses | 22.7 | 26.6 | |||||
Other operating (income) expense - net | 0.6 | 0.6 | |||||
Operating income (loss) | 25.0 | (44.1 | ) | ||||
Interest expense - term loan | — | (0.6 | ) | ||||
Interest expense | (11.2 | ) | (11.7 | ) | |||
Interest income | 0.9 | 0.4 | |||||
Net gain (loss) on forward and derivative contracts | 1.9 | 0.4 | |||||
Other income (expense) - net | 1.3 | (0.5 | ) | ||||
Income (loss) before income taxes and equity in earnings of joint ventures | 17.9 | (56.1 | ) | ||||
Income tax benefit (expense) | (1.4 | ) | 4.4 | ||||
Income (loss) before equity in earnings of joint ventures | 16.5 | (51.7 | ) | ||||
Loss on sale of BHH | — | (4.3 | ) | ||||
Equity in earnings of joint ventures | 2.6 | 0.7 | |||||
Net income (loss) | $ | 19.1 | $ | (55.3 | ) | ||
Net income (loss) allocated to common stockholders | $ | 17.6 | $ | (55.3 | ) | ||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||
Basic | $ | 0.20 | $ | (0.63 | ) | ||
Diluted | $ | 0.20 | $ | (0.63 | ) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic | 87.6 | 88.5 | |||||
Diluted | 88.4 | 88.5 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except share amounts) | |||||||
(Unaudited) | |||||||
December 31, 2018 | June 30, 2019 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 38.9 | $ | 25.7 | |||
Restricted cash | 0.8 | 0.8 | |||||
Accounts receivable - net | 82.5 | 92.3 | |||||
Due from affiliates | 22.7 | 21.4 | |||||
Inventories | 343.8 | 339.2 | |||||
Prepaid and other current assets | 18.0 | 22.2 | |||||
Total current assets | 506.7 | 501.6 | |||||
Property, plant and equipment - net | 967.3 | 951.5 | |||||
Leases - right of use assets | — | 24.3 | |||||
Other assets | 63.5 | 37.9 | |||||
TOTAL | $ | 1,537.5 | $ | 1,515.3 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 119.4 | $ | 98.3 | |||
Due to affiliates | 10.3 | 13.5 | |||||
Accrued and other current liabilities | 52.5 | 55.9 | |||||
Accrued employee benefits costs | 11.0 | 11.0 | |||||
Term loan - current | — | 10.0 | |||||
Revolving credit facility | 23.3 | 8.1 | |||||
Industrial revenue bonds | 7.8 | 7.8 | |||||
Total current liabilities | 224.3 | 204.6 | |||||
Senior notes payable | 248.6 | 248.9 | |||||
Term loan - less current portion | — | 30.0 | |||||
Accrued pension benefits costs - less current portion | 50.9 | 49.0 | |||||
Accrued postretirement benefits costs - less current portion | 101.2 | 101.5 | |||||
Other liabilities | 46.0 | 47.9 | |||||
Leases - right of use liabilities | — | 23.5 | |||||
Deferred taxes | 104.3 | 100.5 | |||||
Total noncurrent liabilities | 551.0 | 601.3 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 71,967 outstanding at December 31, 2018; 160,000 issued and 68,575 outstanding at June 30, 2019) | 0.0 | 0.0 | |||||
Common stock (one cent par value, 195,000,000 authorized; 95,289,961 issued and 88,103,440 outstanding at December 31, 2018; 96,080,288 issued and 88,893,767 outstanding at June 30, 2019) | 1.0 | 1.0 | |||||
Additional paid-in capital | 2,523.0 | 2,524.3 | |||||
Treasury stock, at cost | (86.3 | ) | (86.3 | ) | |||
Accumulated other comprehensive loss | (98.7 | ) | (98.7 | ) | |||
Accumulated deficit | (1,576.8 | ) | (1,630.9 | ) | |||
Total shareholders’ equity | 762.2 | 709.4 | |||||
TOTAL | $ | 1,537.5 | $ | 1,515.3 |
CENTURY ALUMINUM COMPANY | |||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions) | |||||||
(Unaudited) | |||||||
Six months ended June 30, | |||||||
2018 | 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 19.1 | $ | (55.3 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Loss on sale of BHH | — | 4.3 | |||||
Unrealized (gain) loss on derivative instruments | (1.2 | ) | (0.8 | ) | |||
Lower of cost or NRV inventory adjustment | (3.2 | ) | 13.4 | ||||
Depreciation and amortization | 43.6 | 43.1 | |||||
Other non-cash items - net | (8.2 | ) | (5.1 | ) | |||
Change in operating assets and liabilities: | |||||||
Accounts receivable - net | (53.5 | ) | 0.7 | ||||
Due from affiliates | 3.8 | 1.6 | |||||
Inventories | (42.3 | ) | (8.9 | ) | |||
Prepaid and other current assets | (0.9 | ) | 2.1 | ||||
Accounts payable, trade | 28.0 | (23.1 | ) | ||||
Due to affiliates | (18.1 | ) | 2.9 | ||||
Accrued and other current liabilities | 2.2 | (1.6 | ) | ||||
Other - net | 0.3 | 1.1 | |||||
Net cash provided by (used in) operating activities | (30.4 | ) | (25.6 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (13.0 | ) | (23.3 | ) | |||
Proceeds from sale of joint venture | — | 10.5 | |||||
Net cash provided by (used in) investing activities | (13.0 | ) | (12.8 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under term loan | — | 40.0 | |||||
Borrowings under revolving credit facilities | — | 288.2 | |||||
Repayments under revolving credit facilities | — | (303.3 | ) | ||||
Other short-term borrowings | — | 3.4 | |||||
Repayment on other short-term borrowings | — | (3.4 | ) | ||||
Issuance of common stock | 0.2 | 0.3 | |||||
Net cash provided by (used in) financing activities | 0.2 | 25.2 | |||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (43.2 | ) | (13.2 | ) | |||
Cash, cash equivalents and restricted cash, beginning of period | 168.0 | 39.7 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 124.8 | $ | 26.5 | |||
Supplemental Cash Flow Information: | |||||||
Cash paid for: | |||||||
Interest | $ | 9.9 | $ | 10.6 | |||
Taxes | 3.6 | 0.3 | |||||
Non-cash investing activities: | |||||||
Capital expenditures | 6.6 | 2.1 |
SHIPMENTS - PRIMARY ALUMINUM(1) | ||||||||||||||||||||
United States | Iceland | Total | ||||||||||||||||||
Tonnes | Net Sales (in millions) | Tonnes | Net Sales (in millions) | Tonnes | Net Sales (in millions) | |||||||||||||||
2019 | ||||||||||||||||||||
2nd Quarter | 125,154 | $ | 295.0 | 78,226 | $ | 157.7 | 203,380 | $ | 452.7 | |||||||||||
1st Quarter | 130,043 | $ | 313.3 | 76,408 | $ | 159.3 | 206,451 | $ | 472.6 | |||||||||||
2018 | ||||||||||||||||||||
2nd Quarter | 100,458 | $ | 279.4 | 79,762 | $ | 189.1 | 180,220 | $ | 468.6 | |||||||||||
(1) Excludes scrap aluminum sales and alumina sales. |
Three months ended | ||||||||||||||||
March 31, 2019 | June 30, 2019 | |||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net income (loss) as reported | $ | (34.6 | ) | $ | (0.39 | ) | $ | (20.7 | ) | $ | (0.23 | ) | ||||
Lower of cost or NRV inventory adjustment, net of tax | (35.0 | ) | (0.40 | ) | 9.0 | 0.10 | ||||||||||
Unrealized (gain) loss on derivative instruments | 5.6 | 0.06 | (6.2 | ) | (0.07 | ) | ||||||||||
Loss on sale of BHH | — | — | 4.3 | 0.05 | ||||||||||||
Sebree equipment failure, net of insurance proceeds | (4.3 | ) | (0.05 | ) | (2.8 | ) | (0.03 | ) | ||||||||
Hawesville restart project | 1.7 | 0.02 | 0.2 | — | ||||||||||||
Impact of preferred shares | — | 0.06 | — | 0.01 | ||||||||||||
Adjusted net income (loss) | $ | (66.6 | ) | $ | (0.70 | ) | $ | (16.2 | ) | $ | (0.17 | ) |
Three months ended | ||||||||
March 31, 2019 | June 30, 2019 | |||||||
Net income (loss) as reported | $ | (34.6 | ) | $ | (20.7 | ) | ||
Interest expense | 5.8 | 5.8 | ||||||
Interest expense - term loan | — | 0.6 | ||||||
Interest income | (0.2 | ) | (0.2 | ) | ||||
Net (gain) loss on forward and derivative contracts | 5.7 | (6.1 | ) | |||||
Other (income) expense - net | (1.1 | ) | 1.7 | |||||
Income tax (benefit) expense | (2.9 | ) | (1.6 | ) | ||||
Loss on sale of BHH | — | 4.3 | ||||||
Equity in earnings of joint ventures | (0.5 | ) | (0.1 | ) | ||||
Operating income (loss) | $ | (27.8 | ) | $ | (16.3 | ) | ||
Lower of cost or NRV inventory adjustment | (36.3 | ) | 9.6 | |||||
Sebree equipment failure, net of insurance proceeds | (4.3 | ) | (2.8 | ) | ||||
Depreciation and amortization | 24.3 | 21.2 | ||||||
Adjusted EBITDA | $ | (44.1 | ) | $ | 11.7 |