Business Highlights
- Net sales
$545.2 million - Realized LME aluminum price of
$2,237 /T in third quarter is down$134 /T from prior quarter - Falling energy and other raw material costs
- Completed Mt. Holly land sale and received
$26 million proceeds - Total debt decreased
$41.4 million to$512.0 million as ofSeptember 30, 2023 - Cash and cash equivalents of
$70.3 million and strong liquidity of$305.8 million as ofSeptember 30, 2023 - Finalized three-year Mt. Holly power agreement
Third Quarter 2023 Financial Results
$MM (except shipments and per share data) | |||||||
Q2 2023 | Q3 2023 | ||||||
Aluminum shipments (tonnes) | 173,649 | 171,995 | |||||
Net sales | $ | 575.5 | $ | 545.2 | |||
Net income (loss) attributable to Century stockholders | $ | 7.5 | $ | (42.0 | ) | ||
Diluted income (loss) per share attributable to Century stockholders | $ | 0.07 | $ | (0.45 | ) | ||
Adjusted net income (loss) attributable to Century stockholders(1) | $ | 15.5 | $ | (13.8 | ) | ||
Adjusted income (loss) per share attributable to Century stockholders(1) | $ | 0.16 | $ | (0.13 | ) | ||
Adjusted EBITDA attributable to Century stockholders(1) | $ | 29.5 | $ | 9.3 |
Notes:
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures.
Net sales for the third quarter ended
Century reported a net loss attributable to Century stockholders of
Adjusted EBITDA attributable to Century stockholders for the third quarter of 2023 was
Century's liquidity position at quarter end, comprised of cash and cash equivalents of
"Century made progress on its long-term initiatives in the third quarter,” commented President and Chief Executive Officer
“Despite volatile market conditions, lower aluminum prices were largely offset by lower input prices and other cost savings in the quarter,” continued
Fourth Quarter 2023 Outlook
The company expects fourth quarter Adjusted EBITDA to range between
About
With its corporate headquarters located in
Non-GAAP Financial Measures
Adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Century’s ongoing operating performance and ability to generate cash. Management believes these non-GAAP financial measures enhance an overall understanding of Century’s performance and our investors’ ability to review Century’s business from the same perspective as management. The tables below, under the heading "Reconciliation of Non-GAAP Financial Measures," provide a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Century's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA included in this press release may not be comparable to similarly titled measures of other companies. Investors are encouraged to review the reconciliations in conjunction with the presentation of these non-GAAP financial measures.
Cautionary Statement
Certain statements in this press release, and those made by
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
Three months ended | ||||||||
2023 | 2023 | |||||||
Related parties | $ | 427.2 | $ | 400.9 | ||||
Other customers | 148.3 | 144.3 | ||||||
Total net sales | 575.5 | 545.2 | ||||||
Cost of goods sold | 559.6 | 556.7 | ||||||
Gross profit (loss) | 15.9 | (11.5 | ) | |||||
Selling, general and administrative expenses | 12.0 | 10.8 | ||||||
Other operating expense - net | 4.6 | 1.9 | ||||||
Operating loss | (0.7 | ) | (24.2 | ) | ||||
Interest expense | (8.7 | ) | (9.2 | ) | ||||
Interest income | 0.4 | 0.4 | ||||||
Net gain (loss) on forward and derivative contracts | 9.1 | (25.2 | ) | |||||
Other (expense) income - net | (3.5 | ) | 1.3 | |||||
Loss before income taxes | (3.4 | ) | (56.9 | ) | ||||
Income tax benefit | 10.0 | 11.0 | ||||||
Income (loss) before equity in earnings of joint ventures | 6.6 | (45.9 | ) | |||||
Equity in earnings of joint ventures | 0.0 | 0.0 | ||||||
Net income (loss) | 6.6 | (45.9 | ) | |||||
Net loss attributable to noncontrolling interests | (0.9 | ) | (3.9 | ) | ||||
Net income (loss) attributable to Century stockholders | 7.5 | (42.0 | ) | |||||
Less: net income allocated to participating securities | 0.4 | — | ||||||
Net income (loss) allocated to common stockholders | $ | 7.1 | $ | (42.0 | ) | |||
INCOME (LOSS) ATTRIBUTABLE TO CENTURY STOCKHOLDERS PER COMMON SHARE: | ||||||||
Basic | $ | 0.08 | $ | (0.45 | ) | |||
Diluted | $ | 0.07 | $ | (0.45 | ) | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||
Basic | 92.3 | 92.4 | ||||||
Diluted | 93.2 | 92.4 |
CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 54.3 | $ | 70.3 | |||
Restricted cash | 1.2 | 24.4 | |||||
Accounts receivable - net | 66.9 | 65.3 | |||||
Due from affiliates | 4.8 | 20.1 | |||||
Inventories | 398.8 | 465.9 | |||||
Derivative assets | 127.3 | 9.5 | |||||
Prepaid and other current assets | 24.5 | 28.9 | |||||
Total current assets | 677.8 | 684.4 | |||||
Property, plant and equipment - net | 744.4 | 994.8 | |||||
Other assets | 49.8 | 81.8 | |||||
TOTAL | $ | 1,472.0 | $ | 1,761.0 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 167.3 | $ | 221.4 | |||
Accrued compensation and benefits | 33.0 | 42.2 | |||||
Due to affiliates | 17.0 | 60.3 | |||||
Accrued and other current liabilities | 37.6 | 61.6 | |||||
Derivative liabilities | 9.7 | 2.9 | |||||
Deferred credit - preliminary bargain purchase gain | — | 161.6 | |||||
Current maturities of long-term debt | 146.1 | 84.0 | |||||
Total current liabilities | 410.7 | 634.0 | |||||
Long-term debt | 381.6 | 418.0 | |||||
Accrued benefit costs - less current portion | 118.0 | 112.6 | |||||
Other liabilities | 31.4 | 53.5 | |||||
Long-term debt due to affiliates | — | 10.0 | |||||
Due to affiliates - less current portion | 8.3 | 1.7 | |||||
Deferred tax liability | 103.1 | 83.9 | |||||
Asset retirement obligation | 19.6 | 60.6 | |||||
Total noncurrent liabilities | 662.0 | 740.3 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock ( | 0.0 | 0.0 | |||||
Common stock ( | 1.0 | 1.0 | |||||
Additional paid-in capital | 2,539.6 | 2,541.8 | |||||
(86.3 | ) | (86.3 | ) | ||||
Accumulated other comprehensive loss | (94.0 | ) | (89.0 | ) | |||
Accumulated deficit | (1,961.0 | ) | (2,034.1 | ) | |||
Total Century shareholders’ equity | 399.3 | 333.4 | |||||
Noncontrolling interest | — | 53.3 | |||||
Total equity | 399.3 | 386.7 | |||||
TOTAL | $ | 1,472.0 | $ | 1,761.0 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions) | |||||||
(Unaudited) | |||||||
Nine months ended | |||||||
2022 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 99.4 | $ | (77.9 | ) | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||
Unrealized (gain) loss on derivative instruments | (302.3 | ) | 84.2 | ||||
OPEB curtailment gain, net | (8.0 | ) | — | ||||
Lower of cost or NRV adjustment | 46.5 | — | |||||
Depreciation, depletion and amortization | 57.5 | 55.3 | |||||
Deferred tax provision (benefit) | 52.3 | (23.5 | ) | ||||
Asset impairment charge | 159.4 | — | |||||
Other non-cash items - net | (12.5 | ) | (1.2 | ) | |||
Change in operating assets and liabilities, net of acquisition: | |||||||
Accounts receivable - net | 8.5 | 21.4 | |||||
Due from affiliates | (5.6 | ) | (13.0 | ) | |||
Inventories | (4.1 | ) | 26.3 | ||||
Prepaid and other current assets | 5.6 | 4.8 | |||||
Accounts payable, trade | (9.6 | ) | (45.1 | ) | |||
Due to affiliates | (34.0 | ) | 15.8 | ||||
Accrued and other current liabilities | 12.5 | (2.0 | ) | ||||
Ravenswood retiree medical settlement | (2.0 | ) | (2.0 | ) | |||
PBGC Settlement | — | (4.5 | ) | ||||
Other - net | (6.4 | ) | 1.0 | ||||
Net cash provided by operating activities | 57.2 | 39.6 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (70.2 | ) | (62.7 | ) | |||
Proceeds from sale of property, plant and equipment | 0.1 | 25.7 | |||||
Acquisition of subsidiary net of cash acquired | — | 19.4 | |||||
Net cash used in investing activities | (70.1 | ) | (17.6 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 910.2 | 575.2 | |||||
Repayments under revolving credit facilities | (910.4 | ) | (632.0 | ) | |||
Debt issuance costs | (1.6 | ) | — | ||||
Repayments of | — | (9.8 | ) | ||||
Borrowings under Grundartangi casthouse debt facility | 40.0 | 40.0 | |||||
Borrowings under Vlissingen Facility Agreement | — | 10.0 | |||||
Carbon credit proceeds | — | 33.8 | |||||
Net cash provided by financing activities | 38.2 | 17.2 | |||||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 25.3 | 39.2 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 40.7 | 55.5 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 66.0 | $ | 94.7 | |||
Supplemental Cash Flow Information: | |||||||
Cash paid for: | |||||||
Interest | $ | 14.0 | $ | 22.3 | |||
Taxes, net of refunds | 1.9 | 1.0 | |||||
Non-cash investing activities: | |||||||
Capital expenditures | 1.1 | 10.2 | |||||
Capitalized interest | 3.4 | 4.0 |
SELECTED OPERATING DATA
(in millions, except shipments)
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM(1) | |||||||||||||||
Total | |||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | ||||||||||
2023 | |||||||||||||||
3rd Quarter | 93,675 | $ | 265.8 | 78,320 | $ | 207.9 | 171,995 | $ | 473.7 | ||||||
2nd Quarter | 97,224 | $ | 296.4 | 76,425 | $ | 212.3 | 173,649 | $ | 508.7 | ||||||
1st Quarter | 102,430 | $ | 317.6 | 78,735 | $ | 210.1 | 181,165 | $ | 527.7 | ||||||
2022 | |||||||||||||||
3rd Quarter | 95,502 | $ | 320.3 | 78,223 | $ | 283.7 | 173,725 | $ | 604.0 | ||||||
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 |
(1) Excludes scrap aluminum sales, purchased aluminum and alumina sales.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(Unaudited)
Three months ended | ||||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net income (loss) attributable to Century stockholders(1) | $ | 6.9 | $ | 0.07 | $ | (42.0 | ) | $ | (0.43 | ) | ||||||
Lower of cost or NRV inventory adjustment, net of tax | 6.6 | 0.06 | (4.2 | ) | (0.04 | ) | ||||||||||
Unrealized (gain) loss on derivative contracts, net of tax | (4.3 | ) | (0.04 | ) | 21.9 | 0.22 | ||||||||||
Hawesville curtailment costs | 3.6 | 0.04 | — | — | ||||||||||||
Share-based compensation | 1.6 | 0.02 | 1.0 | 0.01 | ||||||||||||
Jamalco acquisition costs | 0.7 | 0.01 | 0.2 | — | ||||||||||||
Jamalco equipment failure | — | — | 9.3 | 0.10 | ||||||||||||
Impact of preferred and convertible shares | 0.4 | — | — | 0.01 | ||||||||||||
Adjusted net income (loss) attributable to Century stockholders | $ | 15.5 | $ | 0.16 | $ | (13.8 | ) | $ | (0.13 | ) | ||||||
Notes: | ||||||||||||||||
(1) In periods of positive earnings, this represents earnings allocated to participating dilutive shares. For the three months ended |
Three months ended | ||||||||
Net income (loss) attributable to Century stockholders, as reported | $ | 7.5 | $ | (42.0 | ) | |||
Add: Net loss attributable to noncontrolling interests | (0.9 | ) | (3.9 | ) | ||||
Net income (loss) | 6.6 | (45.9 | ) | |||||
Interest expense | 8.7 | 9.2 | ||||||
Interest income | (0.4 | ) | (0.4 | ) | ||||
Net (gain) loss on forward and derivative contracts | (9.1 | ) | 25.2 | |||||
Other expense (income) - net | 3.5 | (1.3 | ) | |||||
Income tax benefit | (10.0 | ) | (11.0 | ) | ||||
Operating loss | (0.7 | ) | (24.2 | ) | ||||
Lower of cost or NRV inventory adjustment | 6.4 | (4.6 | ) | |||||
Hawesville curtailment costs | 3.6 | — | ||||||
Share-based compensation | 1.4 | 1.0 | ||||||
Jamalco acquisition costs | 0.7 | 0.2 | ||||||
Jamalco equipment failure | — | 16.9 | ||||||
Depreciation, depletion and amortization | 17.2 | 25.6 | ||||||
Adjusted EBITDA | 28.6 | 14.9 | ||||||
Less: Adjusted EBITDA attributable to noncontrolling interests | (0.9 | ) | 5.6 | |||||
Adjusted EBITDA attributable to Century stockholders | $ | 29.5 | 9.3 |
Contact
(Investors and media)
312-696-3132
Source: Century Aluminum Company
Source:
2023 GlobeNewswire, Inc., source