For the first quarter of 2012, Century reported a net loss of
Sales for the first quarter of 2013 were
"Market volatility has increased due to a number of factors," commented
"We are pushing forward on our other key initiatives," concluded
Cautionary Statement
This press release and comments made by Century management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. Such risks and uncertainties may include, without limitation, declines in aluminum prices or increases in our operating costs; worsening of global financial and economic conditions; increases in global aluminum inventories; market volatility and growth in developing economies; variations in sales and consumer demand for aluminum; and our ability to secure competitive long-term power arrangements for our facilities.
Forward-looking statements in this press release include, without limitation, statements regarding global economic and financial trends; our ability to successfully access wholesale or market-based power for our
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||
(Dollars in thousands, except per share amounts) | |||||||||
(Unaudited) | |||||||||
Three months ended | |||||||||
2013 | 2012 | ||||||||
NET SALES: | |||||||||
Third-party customers | $ | 188,514 | $ | 188,839 | |||||
Related parties | 132,760 | 137,351 | |||||||
321,274 | 326,190 | ||||||||
Cost of goods sold | 303,692 | 305,598 | |||||||
Gross profit | 17,582 | 20,592 | |||||||
Other operating expenses - net | 1,096 | 3,721 | |||||||
Selling, general and administrative expenses | 16,299 | 8,459 | |||||||
Operating income | 187 | 8,412 | |||||||
Interest expense - third party - net | (5,945 | ) | (5,840 | ) | |||||
Interest income - related parties | - | 60 | |||||||
Net gain (loss) on forward and derivative contracts | 15,507 | (5,159 | ) | ||||||
Other income - net | 70 | 306 | |||||||
Income (loss) before income taxes and equity in earnings of joint ventures | 9,819 | (2,221 | ) | ||||||
Income tax expense | (2,517 | ) | (2,821 | ) | |||||
Income (loss) before equity in earnings of joint ventures | 7,302 | (5,042 | ) | ||||||
Equity in earnings of joint ventures | 951 | 641 | |||||||
Net income (loss) | $ | 8,253 | $ | (4,401 | ) | ||||
Net income (loss) allocated to common shareholders | $ | 7,567 | $ | (4,401 | ) | ||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||
Basic and Diluted | $ | 0.09 | $ | (0.05 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||
Basic | 88,555 | 88,727 | |||||||
Diluted | 89,020 | 88,727 | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
(Dollars in thousands, except share data) | |||||||||
(Unaudited) | |||||||||
ASSETS | 2013 | 2012 | |||||||
Cash and cash equivalents | $ | 195,471 | $ | 183,976 | |||||
Restricted cash | 258 | 258 | |||||||
Accounts receivable - net | 52,312 | 50,667 | |||||||
Due from affiliates | 43,561 | 37,870 | |||||||
Inventories | 156,815 | 159,925 | |||||||
Prepaid and other current assets | 41,163 | 34,975 | |||||||
Deferred taxes - current portion | 19,726 | 19,726 | |||||||
Total current assets | 509,306 | 487,397 | |||||||
Property, plant and equipment - net | 1,180,770 | 1,188,214 | |||||||
Other assets | 101,039 | 100,715 | |||||||
TOTAL | $ | 1,791,115 | $ | 1,776,326 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
LIABILITIES: | |||||||||
Accounts payable, trade | $ | 75,796 | $ | 75,370 | |||||
Due to affiliates | 50,210 | 39,737 | |||||||
Accrued and other current liabilities | 49,001 | 40,099 | |||||||
Accrued employee benefits costs - current portion | 18,668 | 18,683 | |||||||
Industrial revenue bonds | 7,815 | 7,815 | |||||||
Total current liabilities | 201,490 | 181,704 | |||||||
Senior notes payable | 250,861 | 250,582 | |||||||
Accrued pension benefits costs - less current portion | 67,322 | 67,878 | |||||||
Accrued postretirement benefits costs - less current portion | 143,794 | 143,105 | |||||||
Other liabilities | 25,278 | 40,162 | |||||||
Deferred taxes | 110,361 | 110,252 | |||||||
Total noncurrent liabilities | 597,616 | 611,979 | |||||||
SHAREHOLDERS' EQUITY: | |||||||||
Series A Preferred stock ( |
1 |
1 |
|||||||
Common stock ( |
934 | 933 | |||||||
Additional paid-in capital | 2,507,671 | 2,507,454 | |||||||
Treasury stock, at cost | (49,924 | ) | (49,924 | ) | |||||
Accumulated other comprehensive loss | (150,297 | ) | (151,192 | ) | |||||
Accumulated deficit | (1,316,376 | ) | (1,324,629 | ) | |||||
Total shareholders' equity | 992,009 | 982,643 | |||||||
TOTAL | $ | 1,791,115 | $ | 1,776,326 | |||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(Dollars in thousands) | |||||||||||
(Unaudited) | |||||||||||
Three months ended | |||||||||||
2013 | 2012 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | 8,253 | $ | (4,401 | ) | ||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Unrealized net (gain) loss on forward contracts | (141 | ) | 4,955 | ||||||||
Unrealized gain on |
(15,722 | ) | - | ||||||||
Accrued and other plant curtailment costs - net | 1,154 | 1,374 | |||||||||
Lower of cost or market inventory adjustment | 5,838 | (17,051 | ) | ||||||||
Depreciation | 15,688 | 15,652 | |||||||||
Debt discount amortization | 279 | 256 | |||||||||
Pension and other postretirement benefits | 1,443 | (1,138 | ) | ||||||||
Stock-based compensation | 217 | 145 | |||||||||
Undistributed earnings of joint ventures | (951 | ) | (641 | ) | |||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable - net | (1,998 | ) | (2,884 | ) | |||||||
Due from affiliates | (5,691 | ) | (249 | ) | |||||||
Inventories | (2,728 | ) | 18,710 | ||||||||
Prepaid and other current assets | (6,072 | ) | (5,366 | ) | |||||||
Accounts payable, trade | 2,264 | (11,442 | ) | ||||||||
Due to affiliates | 10,472 | (360 | ) | ||||||||
Accrued and other current liabilities | 7,538 | 7,003 | |||||||||
Other - net | 2,558 | 335 | |||||||||
Net cash provided by operating activities | 22,401 | 4,898 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of property, plant and equipment | (9,364 | ) | (2,899 | ) | |||||||
Nordural expansion - Helguvik | (1,745 | ) | (1,946 | ) | |||||||
Purchase of carbon anode assets and improvements | (150 | ) | - | ||||||||
Investments in and advances to joint ventures | - | (100 | ) | ||||||||
Dividends and payments received on advances from joint ventures | - | 3,166 | |||||||||
Proceeds from sale of property, plant and equipment | 353 | 58 | |||||||||
Net cash used in investing activities | (10,906 | ) | (1,721 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Borrowings under revolving credit facility | - | 18,076 | |||||||||
Repayments under revolving credit facility | - | (18,076 | ) | ||||||||
Repurchase of common stock | - | (4,033 | ) | ||||||||
Net cash used in financing activities | - | (4,033 | ) | ||||||||
CHANGE IN CASH AND CASH EQUIVALENTS | 11,495 | (856 | ) | ||||||||
Cash and cash equivalents, beginning of period | 183,976 | 183,401 | |||||||||
Cash and cash equivalents, end of period | $ | 195,471 | $ | 182,545 | |||||||
Selected Operating Data | ||||||||||||
(Unaudited) | ||||||||||||
SHIPMENTS - PRIMARY ALUMINUM | ||||||||||||
Direct (1) | Toll | |||||||||||
(000) | (000) | |||||||||||
Tonnes | Pounds | $/Pound | Tonnes | Pounds | Revenue | |||||||
2013 | ||||||||||||
1st Quarter | 93,472 | 206,070 | 1.06 | 65,304 | 143,971 | 103,973 | ||||||
2012 | ||||||||||||
1st Quarter | 94,087 | 207,426 | 1.06 | 65,880 | 145,240 | 106,416 | ||||||
(1) Does not include Toll shipments from Nordural Grundartangi | ||||||||||||
Contacts:
831-642-9364
831-642-9357
Source:
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