(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
(Address of Principal Executive Offices) | (Zip Code) | ||||
(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)) |
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||||||
(Nasdaq Global Select Market) |
Exhibit Number | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CENTURY ALUMINUM COMPANY | ||||||||||||||
Date: | August 9, 2022 | By: | /s/ MICHELLE M. HARRISON | |||||||||||
Name: | Michelle M. Harrison | |||||||||||||
Title: | Senior Vice President, Finance and Treasurer (Principal Financial Officer) |
$MM (except shipments and per share data) | ||||||||||||||
Q1 2022 | Q2 2022 | |||||||||||||
Shipments (tonnes) | 211,411 | 214,084 | ||||||||||||
Net sales | $ | 753.6 | $ | 856.6 | ||||||||||
Net income | $ | 17.7 | $ | 37.4 | ||||||||||
Diluted earnings per share | $ | 0.18 | $ | 0.36 | ||||||||||
Adjusted net income(1) | $ | 60.7 | $ | 30.4 | ||||||||||
Adjusted earnings per share(1) | $ | 0.59 | $ | 0.30 | ||||||||||
Adjusted EBITDA(1) | $ | 105.5 | $ | 86.6 | ||||||||||
Notes: | ||||||||||||||
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures. |
CENTURY ALUMINUM COMPANY | ||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
(in millions, except per share amounts) | ||||||||||||||
(Unaudited) | ||||||||||||||
Three months ended | ||||||||||||||
March 31, | June 30, | |||||||||||||
2022 | 2022 | |||||||||||||
NET SALES: | ||||||||||||||
Related parties | $ | 433.1 | $ | 483.5 | ||||||||||
Other customers | 320.5 | 373.1 | ||||||||||||
Total net sales | 753.6 | 856.6 | ||||||||||||
Cost of goods sold | 660.4 | 840.7 | ||||||||||||
Gross profit (loss) | 93.2 | 15.9 | ||||||||||||
Selling, general and administrative expenses | 11.7 | 5.8 | ||||||||||||
Asset impairment charge | — | 159.4 | ||||||||||||
Other operating expense - net | 0.2 | 0.2 | ||||||||||||
Operating income (loss) | 81.3 | (149.5) | ||||||||||||
Interest expense | (7.3) | (5.7) | ||||||||||||
Interest income | 0.1 | 0.0 | ||||||||||||
Net gain (loss) on forward and derivative contracts | (56.7) | 231.8 | ||||||||||||
Other income - net | 2.0 | 3.1 | ||||||||||||
Income (loss) before income taxes | 19.4 | 79.7 | ||||||||||||
Income tax benefit (expense) | (1.7) | (42.3) | ||||||||||||
Net income (loss) | $ | 17.7 | $ | 37.4 | ||||||||||
Less: net income (loss) allocated to participating securities | 1.1 | 2.3 | ||||||||||||
Net income (loss) allocated to common stockholders | $ | 16.6 | $ | 35.1 | ||||||||||
EARNINGS (LOSS) PER COMMON SHARE: | ||||||||||||||
Basic | $ | 0.18 | $ | 0.38 | ||||||||||
Diluted | $ | 0.18 | $ | 0.36 | ||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||
Basic | 91.2 | 91.2 | ||||||||||||
Diluted | 97.1 | 97.6 | ||||||||||||
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
December 31, 2021 | June 30, 2022 |
ASSETS | |||||||||||
Cash and cash equivalents | $ | 29.0 | $ | 30.0 | |||||||
Restricted cash | 11.7 | 2.5 | |||||||||
Accounts receivable - net | 80.6 | 122.1 | |||||||||
Due from affiliates | 8.3 | 17.1 | |||||||||
Inventories | 425.6 | 415.9 | |||||||||
Derivative assets | 34.8 | 140.4 | |||||||||
Prepaid and other current assets | 28.2 | 29.0 | |||||||||
Total current assets | 618.2 | 757.0 | |||||||||
Property, plant and equipment - net | 892.5 | 738.4 | |||||||||
Other assets | 59.2 | 89.6 | |||||||||
TOTAL | $ | 1,569.9 | $ | 1,585.0 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Accounts payable, trade | $ | 186.5 | $ | 229.5 | |||||||
Due to affiliates | 65.8 | 26.6 | |||||||||
Accrued and other current liabilities | 62.7 | 71.3 | |||||||||
Derivative liabilities | 102.1 | 49.4 | |||||||||
Accrued employee benefits costs | 8.9 | 10.2 | |||||||||
U.S. revolving credit facility | 63.6 | 15.0 | |||||||||
Iceland revolving credit facility | 50.0 | 35.0 | |||||||||
Industrial revenue bonds | 7.8 | 7.8 | |||||||||
Total current liabilities | 547.4 | 444.8 | |||||||||
Senior notes payable | 245.8 | 246.2 | |||||||||
Convertible senior notes payable | 84.0 | 84.2 | |||||||||
Grundartangi casthouse debt facility | — | 39.4 | |||||||||
Accrued pension benefits costs - less current portion | 28.6 | 25.0 | |||||||||
Accrued postretirement benefits costs - less current portion | 93.3 | 91.4 | |||||||||
Other liabilities | 46.3 | 52.4 | |||||||||
Leases - right of use liabilities | 22.9 | 20.9 | |||||||||
Due to affiliates - less current portion | 21.9 | 9.4 | |||||||||
Deferred taxes | 58.7 | 92.3 | |||||||||
Total noncurrent liabilities | 601.5 | 661.2 | |||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 58,542 outstanding at December 31, 2021 and June 30, 2022) | 0.0 | 0.0 | |||||||||
Common stock (one cent par value, 195,000,000 authorized; 98,418,132 issued and 91,231,611 outstanding at December 31, 2021 and June 30, 2022) | 1.0 | 1.0 | |||||||||
Additional paid-in capital | 2,535.5 | 2,537.0 | |||||||||
Treasury stock, at cost | (86.3) | (86.3) | |||||||||
Accumulated other comprehensive loss | (82.3) | (80.9) | |||||||||
Accumulated deficit | (1,946.9) | (1,891.8) | |||||||||
Total shareholders’ equity | 421.0 | 479.0 | |||||||||
TOTAL | $ | 1,569.9 | $ | 1,585.0 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Six months ended June 30, | |||||||||||
2021 | 2022 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | (175.1) | $ | 55.1 | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Unrealized (gain) loss on derivative instruments | 127.5 | (217.5) | |||||||||
Lower of cost or NRV inventory adjustment | — | 52.8 | |||||||||
Depreciation and amortization | 41.8 | 42.1 | |||||||||
Loss on early extinguishment of debt | 24.7 | — | |||||||||
Deferred tax provision (benefit) | (47.6) | 41.9 | |||||||||
Asset impairment charge | — | 159.4 | |||||||||
Other non-cash items - net | 4.2 | (9.0) | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable - net | (16.0) | (41.6) | |||||||||
Due from affiliates | (16.6) | (8.7) | |||||||||
Inventories | (40.4) | (43.0) | |||||||||
Prepaid and other current assets | (4.3) | 1.1 | |||||||||
Accounts payable, trade | 9.7 | 47.5 | |||||||||
Due to affiliates | 9.8 | (28.8) | |||||||||
Accrued and other current liabilities | (1.3) | 16.6 | |||||||||
Other - net | (4.3) | 0.7 | |||||||||
Net cash provided by (used in) operating activities | (87.9) | 68.6 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of property, plant and equipment | (25.9) | (51.8) | |||||||||
Proceeds from sale of property, plant and equipment | 0.0 | 0.1 | |||||||||
Net cash used in investing activities | (25.9) | (51.7) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Repayment of Senior Notes due 2025 | (250.0) | — | |||||||||
Early redemption and tender premiums paid | (18.1) | — | |||||||||
Proceeds from issuance of Senior Notes due 2028 | 250.0 | — | |||||||||
Proceeds from issuance of Convertible Senior Notes | 86.3 | — |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Six months ended June 30, | |||||||||||
2021 | 2022 | ||||||||||
Repayments on Hawesville term loan | (10.0) | — | |||||||||
Borrowings under revolving credit facilities | 426.9 | 596.4 | |||||||||
Repayments under revolving credit facilities | (432.3) | (660.0) | |||||||||
Debt issuance costs | (7.4) | (1.5) | |||||||||
Purchases of capped calls related to Convertible Senior Notes | (5.7) | — | |||||||||
Borrowings under Grundartangi casthouse debt facility | — | 40.0 | |||||||||
Net cash provided by (used in) financing activities | 39.7 | (25.1) | |||||||||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | (74.1) | (8.2) | |||||||||
Cash, cash equivalents and restricted cash, beginning of period | 84.3 | 40.7 | |||||||||
Cash, cash equivalents and restricted cash, end of period | $ | 10.2 | $ | 32.5 | |||||||
Supplemental Cash Flow Information: | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | 25.7 | $ | 13.1 | |||||||
Taxes | 0.0 | 1.2 | |||||||||
Non-cash investing activities: | |||||||||||
Capital expenditures | 2.8 | 2.6 | |||||||||
Capitalized Interest | — | 2.9 |
SHIPMENTS - PRIMARY ALUMINUM(1) | ||||||||||||||||||||||||||||||||||||||
United States | Iceland | Total | ||||||||||||||||||||||||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | |||||||||||||||||||||||||||||||||
2022 | ||||||||||||||||||||||||||||||||||||||
2nd Quarter | 139,630 | $ | 564.8 | 74,454 | $ | 273.2 | 214,084 | $ | 838.0 | |||||||||||||||||||||||||||||
1st Quarter | 134,953 | $ | 494.8 | 76,458 | $ | 247.5 | 211,411 | $ | 742.3 | |||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||
March 31, 2022 | June 30, 2022 | |||||||||||||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||||||||||||
Net income (loss) as reported (1) | $ | 17.3 | $ | 0.18 | $ | 35.5 | $ | 0.36 | ||||||||||||||||||
Lower of cost or NRV inventory adjustment, net of tax | 52.8 | 0.54 | ||||||||||||||||||||||||
Unrealized (gain) loss on derivative contracts, net of tax | 39.0 | 0.40 | (221.8) | (2.27) | ||||||||||||||||||||||
Asset impairment | — | — | 159.4 | 1.63 | ||||||||||||||||||||||
Hawesville curtailment costs | — | — | 8.2 | 0.08 | ||||||||||||||||||||||
Share-based compensation | 3.3 | 0.03 | (6.0) | (0.06) | ||||||||||||||||||||||
Impact of preferred and convertible shares | 1.1 | (0.02) | 2.3 | 0.02 | ||||||||||||||||||||||
Adjusted net income (loss) | $ | 60.7 | $ | 0.59 | $ | 30.4 | $ | 0.30 | ||||||||||||||||||
Notes: | ||||||||||||||||||||||||||
(1) In periods of positive earnings, this represents earnings allocated to participating dilutive shares. For the three months ended June 30, 2022, this includes earnings allocated to common stockholders, an add-back of $0.7 million net interest expense related to the convertible notes, and a reduction of $0.3 million in share-based compensation related to the equity classified awards. For the three months ended March 31, 2022, this includes earnings allocated to common stockholders plus an add-back of $0.7 million net interest expense related to the convertible notes. |
Three months ended | ||||||||||||||
March 31, 2022 | June 30, 2022 | |||||||||||||
Net Income (loss) as reported | $ | 17.7 | $ | 37.4 | ||||||||||
Interest expense | 7.3 | 5.7 | ||||||||||||
Interest income | (0.1) | 0.0 | ||||||||||||
Net (gain) loss on forward and derivative contracts | 56.7 | (231.8) | ||||||||||||
Other income - net | (2.0) | (3.1) | ||||||||||||
Income tax expense | 1.7 | 42.3 | ||||||||||||
Operating income (loss) | 81.3 | (149.5) | ||||||||||||
Lower of cost or NRV inventory adjustment | — | 52.8 | ||||||||||||
Asset impairment | — | 159.4 | ||||||||||||
Hawesville curtailment costs | — | 8.2 | ||||||||||||
Share-based compensation | 3.3 | (6.3) | ||||||||||||
Depreciation and amortization | 20.9 | 22.0 | ||||||||||||
Adjusted EBITDA | $ | 105.5 | $ | 86.6 |
Document and Entity Information |
Aug. 09, 2022 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Aug. 09, 2022 |
Entity Registrant Name | Century Aluminum Company |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-34474 |
Entity Tax Identification Number | 13-3070826 |
Entity Address, Address Line One | One South Wacker Drive |
Entity Address, Address Line Two | Suite 1000 |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60606 |
City Area Code | (312) |
Local Phone Number | 696-3101 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.01 par value per share |
Trading Symbol | CENX |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000949157 |
Amendment Flag | false |
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