However, U.S. production (metric tons produced) for the quarter was below expectations, driven by Hawesville's slower than anticipated return to full stable operations following the restart of its curtailed potline earlier this year. The Company estimates it incurred approximately
The Company estimates it will report second quarter net income of
The following is a reconciliation of the Company's estimated net income for the second quarter of 2011 under U.S. GAAP to adjusted net income:
$MM EPS (a) ---------------- ---------------- Low High Low High ------- ------- ------- ------- Estimated net income to be reported $ 23.0 $ 25.0 $ 0.23 $ 0.25 Changes to Board and management(b) 7.7 7.7 0.08 0.08 Reversal of insurance receivable(c) 2.9 2.9 0.03 0.03 Loss on forward contracts(d) 1.6 1.6 0.02 0.02 Early retirement of debt(e) 0.8 0.8 0.01 0.01 Retiree benefits change (8.9) (8.9) (0.09) (0.09) Tax benefit related to retiree benefits change (2.1) (2.1) (0.02) (0.02) ------- ------- ------- ------- Estimated adjusted net income to be reported $ 25.0 $ 27.0 $ 0.25 $ 0.27 ======= ======= ======= =======
(a) Basic and diluted, based upon 101.7MM weighted average shares (common and preferred) outstanding.
(b) Charges related to the contractual impact of the recent changes in the Company's Board of Directors and the executive management team.
(c) Under U.S. GAAP, a receivable of this nature must be reversed if the matter proceeds to litigation. The Company continues to believe it will ultimately receive these proceeds from its insurer.
(d) Non-cash charge primarily related to marking to market of aluminum put options.
(e) Non-cash charge relating to redemption of convertible notes.
In evaluating the Company's financial performance, management reviews results from operations which exclude significant and non-recurring or largely non-cash items. Adjusted net income is a non-GAAP (generally accepted accounting principles) performance measure. The Company believes it is a useful measure that excludes significant and non-recurring or largely non-cash items that can display significant volatility. Adjusted net income should be viewed in addition to, and not in lieu of, net income under U.S. GAAP.
This press release contains "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. Forward-looking statements in this press release include estimates of the amounts of costs and restart expenditures during the second quarter related to production inefficiencies at Hawesville, estimates of the Company's second quarter net income, and estimates of other financial results from the second quarter, including charges relating to changes in the Company's Board of Directors and executive management team, charges relating to insurance receivables, forward contracts and the early retirement of debt and benefits relating to changes in the Century of
Mike Dildine(media) 831-642-9364 Shelly Harrison(investors) 831-642-9357
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