COMMONWEALTH ALUMINUM REPORTS RECORD SALES AND EARNINGS FOR 1995; REGULAR QUARTERLY DIVIDEND DECLARED.LOUISVILLE, Ky.--(BUSINESS WIRE)--Jan. 30, 1996--Commonwealth Aluminum Corporation (Nasdaq/NM: CALC (tool, mathematics) Calc - An extensible, advanced desk calculator and mathematical tool written in Emacs Lisp by Dave Gillespie <daveg@synaptics.com>. Calc runs as part of GNU Emacs. ) today reported record results for the year ended December 31, 1995. Highlights of the year included higher sales, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and earnings as shipments for 1995 reached 588 million pounds. Additionally, return on stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. totaled 16% for the year. Commenting on the results, Mark V. Kaminski, President and Chief Executive Officer, said, "We are very pleased with the continued progress of Commonwealth Aluminum during 1995, our fourth consecutive year of sales and production improvements. During 1995, we continued to enhance the productivity of our plant, which has enabled us to increase our shipments substantially over the past several years, without additional manufacturing facilities. Over the past five years, our conversion costs have declined as our primarily fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). are spread over increasing volume." Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for 1995 increased 35% to $671.5 million compared with $496.5 million last year. Operating income for the year more than doubled, increasing to $42.2 million from $20.3 million in 1994. Net income for 1995 advanced 53% to $33.8 million or $3.32 per common share compared with net income last year of $22.1 million or $2.17 per common share. Net income for 1995 included an after-tax credit of approximately $2.0 million or $.19 per share related to a settlement of disputed utility taxes. In addition, net income in 1995 reflected $1.4 million of earnings from Halco, a bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. mine distributed to Commonwealth's former parent company in the first quarter of 1995. In 1994, Halco income totaled $2.6 million. Net income exclusive of these non-recurring gains increased 56% in 1995 versus 1994. Net sales for the fourth quarter increased 8% to $145.1 million compared with $134.0 million in the same period last year, primarily reflecting higher metal prices. Net income for the fourth quarter totaled $4.6 million or $.45 per common share and benefited from an adjustment to income taxes related to the annual limitation on net operating loss carryforwards Net operating loss carryforwards Application of losses to offset earnings in future years. and the fact that the limitation was not in effect prior to the Company's initial public offering in March 1995. Excluding this benefit, Commonwealth's earnings for the fourth quarter totaled $.28 per share. Net income in the same period last year totaled $4.5 million or $.44 per common share and included Halco income and reflected reduced interest expense since all of the Company's debt at that time was non interest bearing. Adjusting for these benefits, Commonwealth's net income for the fourth quarter of 1994 totaled $.14 per share. Shipments for the year ended December 31, 1995, increased 3% to 588 million pounds from 569 million pounds in 1994. Fourth quarter shipments, however, decreased 8% to 130 million pounds from 141 million pounds in the year-earlier period as customers continued to make strategic inventory adjustments. Customers continue to remain cautious in the current economic environment. At December 31, 1995, Commonwealth's total assets stood at $420.7 million. Stockholders' equity totaled $213.1 million and total debt, including revolving debt, represented 19% of the Company's capitalization. At year's end, the Company had approximately $44 million outstanding under the long-term portion of its $150 million Senior Secured Credit Facility, and $4 million outstanding in revolving debt. Earnings before interest, taxes and depreciation EBITD is an initialism or acronym for Earnings Before Interest, Taxes and Depreciation. See EBITDA. Some people find it useful to know this value for a business. , increased 64% to $65.1 million during 1995. "With the Company's cash flow, low reliance on debt, and the available capacity under our lending agreements Lending agreement A contract regarding funds transferred between a lender and a borrower. , Commonwealth remains well- positioned financially to continue its growth," Kaminski added. Separately, the Company also announced that its Board of Directors has declared a regular quarterly cash dividend of $.05 per share. This dividend, which continues the initial rate set in April 1995, will be paid on February 23, 1996, to stockholders of record on February 9, 1996. Commonwealth Aluminum is one of North America's leading manufacturers of aluminum sheet for the transportation, construction and consumer durables Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. consumer durables See durable goods. end-use markets. The Company manufactures a variety of common alloy products in the form of aluminum sheet at its Lewisport, Kentucky Lewisport is a city in Hancock County, Kentucky, along the Ohio River. The population was 1,639 at the 2000 census. It is included in the Owensboro, Kentucky Metropolitan Statistical Area. Lewisport's mayor is Chad Gregory, and the constable is Danny Case. rolling mill rolling mill: see steel. , one of the largest multi-purpose aluminum rolling mills in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. . -0-
COMMONWEALTH ALUMINUM CORPORATION
Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1995 1994 Change 1995 1994 Change
Net sales $145,102 $133,983 8% $671,501 $496,529 35%
Cost of goods
sold 135,094 125,509 8% 606,751 455,123 33%
Gross profit 10,008 8,474 18% 64,750 41,406 56%
Selling, general
and administrative
expenses 5,699 5,811 -2% 22,510 21,144 6%
Operating income 4,309 2,663 62% 42,240 20,262 108%
Halco income 373 2,424 -- 1,636 2,635 --
Other income
(expense), net (279) (14) -- 2,670 (44) --
Interest expense,
net 822 11 -- 3,473 62 --
Net income
before taxes 3,581 5,062 -29% 43,073 22,791 89%
Provision (benefit)
for income taxes (981) 546 -- 9,286 700 --
Net income $ 4,562 $ 4,516 1% $ 33,787 $ 22,091 53%
Net income
per share $ .45 $ .44 2% $ 3.32 $ 2.17 53%
Weighted average
shares
outstanding 10,190 0,187 -- 10,190 10,187 --
-0-
Operating and Financial Statistics (dollars in thousands) Three Months Ended Year Ended December 31, December 31, 1995 1994 Change 1995 1994 Change Net sales volume (millions lbs.) 130.1 141.3 -8% 587.9 569.0 3% Production volume (millions lbs.) 136.6 137.8 -1% 599.2 557.9 7% Gross profit percent 6.9% 6.3% 9.6% 8.3% Operating income percent 3.0% 2.0% 6.3% 4.1% EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become $ 9,241 $ 8,905 4% $65,138 $39,755 64% EBITDA per share $ .91 $ .87 5% $ 6.39 $ 3.90 64% Current ratio 3.2x 2.3x 3.2x 2.3x Interest coverage ratio (EBITDA to interest expense) 11.2x -- 18.8x -- Return on stockholders' equity (annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. ) 9% 7% 16% 9% Debt-to- capitalization 19% -- 19% -- Effective tax rate -27.4% 10.8% 21.6% 3.1% COMMONWEALTH ALUMINUM CORPORATION Consolidated Statements of Cash Flows (in thousands) Three Months Ended Year Ended December 31, December 31, 1995 1994 1995 1994 Operating activities: Net income $ 4,562 $ 4,516 $ 33,787 $ 22,091 Depreciation and amortization 4,838 3,832 18,592 16,902 Cash profit 9,400 8,348 52,379 38,993 Change in working capital and other net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. (8,594) 8,922 (32,214) (28,474) Net cash provided by operating activities 806 17,270 20,165 10,519 Investing activities: Additions to property, plant and equipment (2,586) (10,469) (15,151) (19,662) Disposals of property, plant and equipment 63 129 304 1,409 Net cash used in investing activities (2,523) (10,340) (14,847) (18,253) Financing activities: Dividends paid on common stock (510) -- (1,528) -- Proceeds from short-term borrowings 4,000 -- 25,000 -- Repayment of short-term borrowings -- (6,930) (21,000) -- Proceeds from term loan -- -- 50,000 -- Repayment of term loan (1,875) -- (5,625) -- Payments to former parent company -- -- (49,500) -- Net cash provided by financing activities 1,615 (6,930) (2,653) -- Net increase (decrease) in cash for the period (102) -- 2,665 (7,734) Cash and equivalents, beginning of period 2,767 -- -- 7,734 Cash and equivalents, end of period $ 2,665 $ -- $ 2,665 $ -- COMMONWEALTH ALUMINUM CORPORATION Consolidated Balance Sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. (in thousands) December 31, 1995 1994 ASSETS Cash and cash equivalents $ 2,665 $ -- Accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying 92,355 98,963 Inventories 125,683 102,803 Due from broker 440 29,737 Prepayments and other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. 6,032 4,525 Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 227,175 236,028 Property, plant and equipment 189,562 192,607 Other non-current assets 3,947 10,819 $420,684 $439,454 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 44,284 $ 57,359 Accrued liabilities Accrued liabilities are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. 14,655 14,534 Accrued income taxes -- 372 Deferred gains - unrealized 440 29,737 Short-term borrowings 4,000 -- Current portion of long-term loan 7,500 -- Total current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. 70,879 102,002 Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. 36,875 -- Pension benefits 18,384 12,785 Postretirement benefits and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. 81,483 81,977 Total liabilities 207,621 196,764 Common stock 102 -- Additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements 301,040 358,498 Accumulated deficit (83,549) (115,808) Unearned compensation (2,261) -- Minimum pension adjustment (2,269) -- Total stockholders' equity 213,063 242,690 $420,684 $439,454 CONTACT: Commonwealth Aluminum Corporation, Louisville William G. Toler, 502/295-5410 |
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