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MONTEREY, CA, Apr 21, 2009 (MARKET WIRE via COMTEX News Network) -- Century Aluminum Company (NASDAQ: CENX) today reported a net loss of $114.6 million ($1.77 per basic and diluted share) for the first quarter of 2009. Quarterly results were negatively impacted by a charge of $24.3 million ($0.38 per basic and diluted share) related to employee separation expenses, supplier payments and other costs resulting from production curtailments at the Ravenswood, WV and Hawesville, KY primary aluminum smelters.
In the first quarter of 2008, the company reported a net loss (as adjusted to reflect the implementation of FASB Staff Position APB 14-1 -- Accounting for Convertible Debt Instruments) of $233.9 million ($5.70 per basic share and diluted share). These results were negatively impacted by an after-tax charge of $285.9 million ($6.97 per basic share) for mark-to-market adjustments on forward contracts that did not qualify for cash flow hedge accounting. Cash used to settle forward contracts that did not qualify for cash flow hedge accounting was $52.3 million.
Recent highlights included:
-- Century has curtailed 28 percent of its global primary aluminum
capacity since December 2008. This amount represents approximately 42
percent of our U.S. primary aluminum capacity.
-- The Ravenswood, WV smelter was completely curtailed in February,
following the curtailment of one of the plant's four potlines in
December 2008. Ravenswood's production capacity is approximately
14,170 tonnes per month.
-- One of the five potlines at the Hawesville, KY smelter was
curtailed in March, reducing primary aluminum capacity by 4,370
tonnes per month.
-- The jointly-owned alumina refinery in Gramercy, Louisiana reduced its
production of smelter grade alumina to 50 percent of capacity, or a
total of approximately 500,000 tonnes per year.
-- As a result of the U.S. plant curtailments, total primary aluminum
shipments of 165,488 tonnes decreased 17 percent from the first quarter
of 2008. Toll shipments from Iceland of 68,096 tonnes increased two
percent from the first quarter of 2008.
-- In February, we sold 24.5 million shares of common stock in a public
offering, raising net proceeds of approximately $104 million.
-- During the quarter, we received federal tax refunds totaling
approximately $90 million.
Sales for the first quarter of 2009 were $224.6 million, compared with $471.1 million for the first quarter of 2008. Shipments of primary aluminum for the 2009 first quarter were 165,488 metric tonnes, compared with 199,721 metric tonnes shipped in the year-ago quarter.
"We took aggressive actions during the quarter to prepare Century for a prolonged period of weak aluminum markets," said president and chief executive officer Logan W. Kruger. "Importantly, the steps we have taken and those we continue to pursue are aimed at establishing Century as a survivor when industry conditions improve. To this end, we have curtailed a significant portion of our U.S. capacity and have meaningfully improved the Company's financial liquidity. We are committed to taking additional actions to improve our position further and are hard at work on a number of fronts. Looking to the future, we continue to evaluate a path forward for the Helguvik, Iceland, greenfield smelter. This project remains an outstanding future growth opportunity that will ultimately benefit from reductions in construction costs that have resulted from the global economic downturn."
Century Aluminum Company owns primary aluminum capacity in the United States and Iceland, as well as an interest in alumina and bauxite assets in the United States and Jamaica. Century's corporate offices are located in Monterey, California.
Century Aluminum's quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.centuryaluminum.com and click on the conference call link on the homepage.
Cautionary Statement
This press release may contain "forward-looking statements" within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations and projections about the future; however, these statements are subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date such forward-looking statements are made.
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended
March 31,
-----------------------
2009 2008
---------- ----------
As
Adjusted
NET SALES:
Third-party customers $ 170,414 $ 356,893
Related parties 54,173 114,249
---------- ----------
224,587 471,142
COST OF GOODS SOLD 296,948 375,147
---------- ----------
GROSS PROFIT (LOSS) (72,361) 95,995
OTHER OPERATING EXPENSES 24,332 -
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 10,120 18,866
---------- ----------
OPERATING INCOME (LOSS) (106,813) 77,129
INTEREST EXPENSE - Net (7,318) (5,509)
INTEREST INCOME - RELATED PARTIES 142 -
NET LOSS ON FORWARD CONTRACTS (3,602) (448,308)
OTHER EXPENSE - Net (242) (533)
---------- ----------
LOSS BEFORE INCOME TAXES AND EQUITY
IN EARNINGS OF JOINT VENTURES (117,833) (377,221)
INCOME TAX BENEFIT 4,096 138,892
---------- ----------
LOSS BEFORE EQUITY IN EARNINGS OF JOINT VENTURES (113,737) (238,329)
EQUITY IN EARNINGS (LOSSES) OF JOINT VENTURES (887) 4,393
---------- ----------
NET LOSS $ (114,624) $ (233,936)
========== ==========
LOSS PER COMMON SHARE
Basic - Net loss $ (1.77) $ (5.70)
Diluted - Net loss $ (1.77) $ (5.70)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 64,608 41,040
Diluted 64,608 41,040
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
March 31, December 31,
ASSETS 2009 2008
----------- -----------
Current Assets: As Adjusted
Cash $ 267,492 $ 129,400
Restricted cash 865 865
Short-term investments - 13,686
Accounts receivable - net 34,517 60,859
Due from affiliates 12,158 39,062
Inventories 112,753 138,111
Prepaid and other current assets 23,557 99,861
Deferred taxes - current portion - 32,290
----------- -----------
Total current assets 451,342 514,134
Property, plant and equipment - net 1,329,956 1,340,037
Intangible asset - net 28,490 32,527
Due from affiliates - less current portion 7,599 7,599
Other assets 160,642 141,061
----------- -----------
Total $ 1,978,029 $ 2,035,358
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 80,189 $ 102,143
Due to affiliates 62,920 70,957
Accrued and other current liabilities 64,172 58,777
Accrued employee benefits costs - current
portion 12,070 12,070
Convertible senior notes 154,691 152,700
Industrial revenue bonds 7,815 7,815
----------- -----------
Total current liabilities 381,857 404,462
----------- -----------
Senior unsecured notes payable 250,000 250,000
Revolving credit facility - 25,000
Accrued pension benefit costs - less current
portion 49,336 50,008
Accrued postretirement benefits costs - less
current portion 180,464 219,539
Other liabilities 42,023 33,464
Deferred taxes 65,443 71,805
----------- -----------
Total noncurrent liabilities 587,266 649,816
----------- -----------
Shareholders' Equity:
Preferred stock (one cent par value, 5,000,000
shares authorized; 153,555 shares outstanding
at March 31, 2009 and 155,787 at
December 31, 2008) 2 2
Common stock (one cent par value, 100,000,000
shares authorized; 74,139,488 shares outstanding
at March 31, 2009 and 49,052,692 at
December 31, 2008) 741 491
Additional paid-in capital 2,377,310 2,272,128
Accumulated other comprehensive loss (100,190) (137,208)
Accumulated deficit (1,268,957) (1,154,333)
----------- -----------
Total shareholders' equity 1,008,906 981,080
----------- -----------
Total $ 1,978,029 $ 2,035,358
=========== ===========
Century Aluminum Company
Consolidated Statements of Cash Flows
(Dollars in Thousands)
(Unaudited)
Three months ended
March 31,
-------------------------
2009 2008
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES: As Adjusted
Net loss $ (114,624) $ (233,936)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Unrealized net loss on forward contracts 1,817 395,930
Accrued plant curtailment costs 18,235 -
Depreciation and amortization 20,845 20,785
Lower of cost or market inventory
adjustment 2,271 -
Deferred income taxes 25,548 (144,331)
Pension and other postretirement benefits 4,112 4,177
Stock-based compensation (90) 8,470
Excess tax benefits from share-based
compensation - (499)
Undistributed earnings of joint ventures 887 (4,393)
Change in operating assets and liabilities:
Accounts receivable - net 26,342 (6,356)
Purchase of short-term trading
securities - (108,536)
Sale of short-term trading securities 13,686 127,450
Due from affiliates 26,904 (8,513)
Inventories 4,761 (12,802)
Prepaid and other current assets 74,187 2,710
Accounts payable, trade (12,201) 12,797
Due to affiliates (8,037) 24,542
Accrued and other current liabilities (9,887) (18,974)
Other - net (20) 329
----------- -----------
Net cash provided by operating activities 74,736 58,850
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (9,184) (8,915)
Nordural expansion (6,501) (7,389)
----------- -----------
Net cash used in investing activities (15,685) (16,304)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment under revolving credit facility (25,000) -
Excess tax benefits from share
based-compensation - 499
Issuance of common stock - net of issuance
costs 104,041 1,543
----------- -----------
Net cash provided by financing activities 79,041 2,042
----------- -----------
NET INCREASE IN CASH 138,092 44,588
CASH, BEGINNING OF PERIOD 129,400 60,962
----------- -----------
CASH, END OF PERIOD $ 267,492 $ 105,550
=========== ===========
Century Aluminum Company
Selected Operating Data
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll
----------------------------- -----------------------------
Metric (000) Metric (000) (000)
Tons Pounds $/Pound Tons Pounds Revenue
--------- --------- --------- --------- --------- ---------
2009
1st Quarter 97,392 214,712 $ 0.72 68,096 150,126 $ 71,048
2008
1st Quarter 133,004 293,223 $ 1.17 66,717 147,086 $ 127,177
(1) Does not include Toll shipments from Nordural Grundartangi
Contacts: Mike Dildine (media) 831-642-9364 Shelly Lair (investors) 831-642-9357 Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland: Helga Gunnarsdottir Director-Corporate Finance NBI hf. Astros Vidarsdottir Senior Manager-Corporate Finance NBI hf.
SOURCE: Century Aluminum Company
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