COMMONWEALTH ALUMINUM REPORTS RECORD SECOND QUARTER SALES AND EARNINGS; BOARD OF DIRECTORS DECLARES REGULAR QUARTERLY DIVIDEND OF $.05 PER SHARE.LOUISVILLE Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky.--(BUSINESS WIRE)--July 19, 1995--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 second quarter and six months ended June June: see month. 30, 1995. The
Company's higher sales and earnings for the period reflected
continued strong demand for aluminum sheet products and improved
material margins.
Net income for the second quarter of 1995 rose 142% to $12.9 million or $1.27 per common share compared with net income in the same period last year of $5.3 million or $.52 per common share. Net income for the second quarter of 1995 included an after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. credit of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.0 million or $.19 per share related to a settlement with the Commonwealth of Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to disputed utility taxes; net income exclusive of this non-recurring gain increased 106% in the second quarter versus the year-earlier period. 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 the period increased 58% to $192.2 million compared with $121.4 million in the same period last year. Second quarter shipments increased 13% to a record 162 million pounds from 144 million pounds in the year-earlier period. Separately, the Company also announced that its Board of Directors has declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a regular quarterly cash dividend of $.05 per share. This dividend, which continues the initial rate set in April 1995, will be paid on August 18, 1995, to stockholders of record on August 4, 1995. Commenting on the results, Mark V. Kaminski, President and Chief Executive Officer, said, "The Company's excellent earnings report for the second quarter demonstrates the strategic value of its focus on the fast-growing adj. 1. tending to spread quickly; - used mostly of plants. Adj. 1. fast-growing - tending to spread quickly; "an aggressive tumor" strong-growing, aggressive segments of the aluminum sheet market, where Commonwealth has attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. significant market share. By continuing to stress on-time delivery and by maintaining a strong emphasis on product consistency Consistency can refer to:
Net income for the first half of 1995 increased to $21.6 million or $2.12 per common share compared with net income in the same period last year of $2.6 million or $.26 per common share. Net sales increased 62% to $366.1 million compared with $225.6 million in the same period last year. First half shipments increased 15% to a record 317 million pounds from 277 million pounds in the year-earlier period. "Our material margins in the first half reached levels not seen since 1988 because of several factors relating both to industry trends and our own efforts to improve our business," Kaminski continued. "The majority of Commonwealth Aluminum customers have been very cautious in managing their inventory levels and have adjusted their third quarter volume projections down from a record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds" best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for first half. With demand returning to more normal levels, we believe the outlook for the second half of 1995 remains good, but demand will not be at the rate we reported for the first half of 1995. Commonwealth's strong balance sheet at June 30, 1995, was highlighted by total assets of $436.1 million, total 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. of $203.9 million, and debt-to-capitalization of 26%. 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 146% to $24.0 million in second quarter and rose 257% to $40.1 million in the first half of the year. During the second quarter, the Company repaid approximately $1.9 million of the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. portion of its $150 million Senior Secured Credit Facility, as well as approximately $2.4 million of the short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. revolving portion. The Company had virtually no 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. in the prior year and, hence, little interest expense in the second quarter and first half of 1994. 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 alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. 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
Unaudited Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 Change 1995 1994 Change
Net sales $192,229 $121,386 58% $366,136 $225,589 62%
Cost of goods sold 171,505 110,171 56% 327,822 212,806 54%
Gross profit 20,724 11,215 85% 38,314 12,783 200%
Selling, general and
administrative
expenses 5,540 4,940 12% 11,509 9,688 19%
Operating income 15,184 6,275 142% 26,805 3,095 766%
Other income
(expense), net 4,036 (847) -- 4,205 (445) --
Interest and
financing expenses 1,457 2 -- 1,849 1 --
Net income before
taxes 17,763 5,426 227% 29,161 2,649 1001%
Provision for
income taxes 4,846 78 -- 7,582 22 --
Net income $12,917 $ 5,348 142% $21,579 $ 2,627 721%
Net income per share $ 1.27 $ .52 144% $ 2.12 $ .26 715%
Weighted average
shares outstanding 10,190 10,187 -- 10,189 10,187 --
Unaudited Operating and Financial Statistics
(dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 Change 1995 1994 Change
Net sales volume
(millions lbs.) 162.4 144.3 13% 317.4 277.1 15%
Production volume
(millions lbs.) 161.7 150.2 8% 317.0 268.6 18%
Gross profit percent 10.8% 9.2% 10.5% 5.7%
Operating income percent 7.9% 5.2% 7.3% 1.4%
EBITDA $24,031 $ 9,772 146% $40,117 $11,238 257%
EBITDA per share $ 2.36 $ .96 146% $ 3.94 $ 1.10 258%
Current ratio 2.5x 1.0x 2.5x 1.0x
Interest coverage ratio
(EBITDA to interest
expense) 16.5x -- 21.7x --
Return on stockholders'
equity (annualized) 25% 22% 21% 5%
Debt-to-capitalization
(includes revolving
debt) 26% -- 26% --
Effective tax rate 27.3% 1.4% 26.0% 0.8%
COMMONWEALTH ALUMINUM CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
1995 1994 1995 1994
Operating activities:
Net income $ 12,917 $ 5,348 $ 21,579 $ 2,627
Depreciation and amortization 4,811 4,344 9,111 8,588
Cash profit 17,728 9,692 30,690 11,215
Change in working capital and
other net assets (11,321) (17,982) (40,284) (6,573)
Net cash (used) provided by
operating activities 6,407 (8,290) (9,594) 4,642
Investing activities:
Additions to property,
plant and equipment (2,615) (4,218) (11,330) (6,343)
Disposals of property,
plant and equipment -- 535 208 53
Net cash used in investing
activities (2,615) (3,683) (11,122) (5,808)
Financing activities:
Dividends paid on
common stock (509) -- (509) --
Proceeds from short-term
borrowings -- -- 25,000 --
Repayment of short-term
borrowings (2,400) -- (2,400) --
Proceeds from term loan -- -- 50,000 --
Repayment of term loan (1,875) -- (1,875) --
Payments to former
parent company -- -- (49,500) --
Net cash provided by
financing activities (4,784) -- 20,716 --
Net increase (decrease) in cash for the period (992) (11,973) -- (1,166) Cash and equivalents, beginning of period 992 18,541 -- 7,734 Cash and equivalents, end of period $ -- $ 6,568 $ -- $ 6,568
COMMONWEALTH ALUMINUM CORPORATION
Consolidated Balance Sheets
(in thousands)
June 30, December 31,
1995 1994
ASSETS
Cash and cash equivalents $ -- $ --
Accounts receivable 124,017 98,963
Inventories 109,951 102,803
Due from broker 1,207 29,737
Prepayments and other current assets 5,786 4,525
Total current assets 240,961 236,028
Property, plant and equipment 194,854 192,607
Investments -- 10,514
Other non-current assets 305 305
------- -------
$436,120 $439,454
LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $45,284 $57,359 Accrued liabilities 13,003 14,534 Accrued income taxes 5,387 372 Deferred gains - unrealized 1,207 29,737 Short-term borrowings 22,600 -- Current portion of long-term loan 7,500 -- Total current liabilities 94,981 102,002 Long-term debt 40,625 -- Pension benefits 13,281 12,785 Postretirement and other liabilities 83,355 81,977 Total liabilities 232,242 196,764 Common stock 102 -- Additional paid-in capital 301,041 358,498 Accumulated deficit (94,738) (115,808) Unearned compensation (2,527) --
Total stockholders' equity 203,878 242,690
-------- --------
$436,120 $439,454
CONTACT: Commonwealth Aluminum Corp., Louisville W. Peter Day, 502/589-8125 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion