COMMONWEALTH ALUMINUM REPORTS SALES AND EARNINGS FOR THE SECOND QUARTER; BOARD OF DIRECTORS DECLARES 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 16, 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 results for the
second quarter and six months ended June June: see month. 30, 1996.
Net income for the second quarter of 1996 was $2.1 million or $.21 per common share compared with net income in the same period last year of $12.9 million or $1.27 per common share. In the prior-year period, the Company reported a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. gain on the settlement of utility taxes and non-recurring income from a bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. mine that was distributed to Commonwealth's former parent company. These together added $2.7 million or $.26 per share to net income in the second quarter of 1995. 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 were $159.7 million compared with $192.2 million in the same period last year. Second quarter shipments totaled 157 million pounds compared with 162 million pounds in the year-earlier period. "The marketplace remained highly competitive during the second quarter, causing our material margins to fall approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 17% to their lowest levels in over two years," said Mark V. Kaminski, President and Chief Executive Officer. "This continues a trend that began during the third quarter of 1995 when, in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of falling metal prices, customers began reducing inventories and putting in place a conservative purchasing strategy." Kaminski noted that average metal prices have declined approximately $.15 per pound since June 1995, including a drop of about $.05 per pound in the second quarter ended June 30, 1996. Net income for the first half of 1996 was $4.5 million or $.44 per common share compared with net income in the same period last year of $21.6 million or $2.12 per common share. Non-recurring gains and income added $3.1 million or $.30 per share to net income in the first half of 1995. Net sales were $327.2 million compared with $366.1 million in the same period last year. First half shipments amounted to 315 million pounds compared with 317 million pounds in the year-earlier period. "A significant element of the reduction in per share earnings during the first half was reduced selling prices and material margins," Kaminski continued. "Commonwealth Aluminum has actually gained market share in 1996 despite a slight decrease in first half shipments. Our ability to maintain shipping levels versus 1995 was accomplished even though industry sheet shipments were down substantially from the year-earlier levels. This increase in market share positions Commonwealth to benefit from future market and economic improvement." 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 cash dividend of $.05 per share. This dividend will be paid on August 12, 1996, to stockholders of record on July July: see month. 29, 1996. Commonwealth's strong balance sheet at June 30, 1996, was highlighted by total assets of $402 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 $217 million, and debt-to-capitalization of 15%. 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. , were $7.3 million in the second quarter and $15.2 million in the first half of the year. During the second quarter, the Company repaid approximately $5.3 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. At quarter's end, the Company had a total outstanding balance under this loan facility of $37.2 million, including $30.3 million of 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. . 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- multi- word element [L.], many. multi- pref. 1. Many; much; multiple: multiarticular. 2. More than one: multiparous. 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
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 Change 1996 1995 Change
Net sales $159,672 $192,229 (17%) $327,216 $366,136 (11%)
Cost of goods sold 150,802 171,505 (12%) 308,535 327,822 (6%)
Gross profit 8,870 20,724 (57%) 18,681 38,314 (51%)
Selling, general and
administrative
expenses 6,224 5,540 12% 12,200 11,509 6%
Operating income 2,646 15,184 (83%) 6,481 26,805 (76%)
Halco income - 960 - - 1,263 -
Other (expense)
income, net (9) 3,076 - (247) 2,942 -
Interest expense,
net 443 1,457 (70%) 1,122 1,849 (39%)
Income before
income taxes 2,194 17,763 (88%) 5,112 29,161 (82%)
Provision for
income taxes 92 4,846 (98%) 617 7,582 (92%)
Net income $ 2,102 $ 12,917 (84%) $ 4,495 $ 21,579 (79%)
Net income per share $ .21 $ 1.27 (84%) $ .44 $ 2.12 (79%)
Weighted average
shares outstanding 10,196 10,190 - 10,196 10,190 -
Operating and Financial Statistics
(dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 Change 1996 1995 Change
Net sales volume
(millions lbs.) 156.6 162.4 (4%) 314.6 317.4 (1%)
Production volume
(millions lbs.) 155.3 161.7 (4%) 304.9 317.0 (4%)
Gross profit percent 5.6% 10.8% 5.7% 10.5%
Operating income
percent 1.7% 7.9% 2.0% 7.3%
EBITDA $ 7,283 $24,031 (70%) $ 15,197 $ 40,117 (62%)
EBITDA per share $ .71 $ 2.36 (70%) $ 1.49 $ 3.94 (62%)
Current ratio 4.0x 2.5x 4.0x 2.5x
Interest coverage
ratio (EBITDA to
interest expense) 16.4x 16.5x 13.5x 21.7x
Return on
stockholders'
equity 4% 25% 4% 21%
Debt-to-capitalization 15% 26% 15% 26%
Effective tax rate 4.2% 27.3% 12.1% 26.0%
COMMONWEALTH ALUMINUM CORPORATION
Condensed Consolidated Statements of Cash Flows
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
Cash flows from
operating activities:
Net income $ 2,102 $ 12,917 $ 4,495 $ 21,579
Depreciation and
amortization 4,646 4,811 8,963 9,111
Cash profit 6,748 17,728 13,458 30,690
Change in working
capital and other
net assets (3,262) (11,321) 1,518 (40,284)
Net cash provided
by (used for)
operating
activities 3,486 6,407 14,976 (9,594)
Cash flows from investing activities: Additions to property, plant and equipment, net of disposals (2,941) (2,614) (4,612) (11,122) Cash flows from financing activities: Dividends paid on common stock (511) (509) (1,021) (509) Proceeds from short-term borrowings 6,080 - 9,050 25,000 Repayment of short-term borrowings (6,080) (2,400) (13,050) (2,400) Proceeds from long-term debt - - - 50,000 Repayment of long-term debt (5,331) (1,875) (7,206) (1,875) Payments to former parent company - - - (49,500) Net cash (used for) provided by financing activities (5,842) (4,784) (12,227) 20,716 Decrease in cash for the period (5,297) (992) (1,863) - Cash and equivalents, beginning of period 6,099 992 2,665 - Cash and equivalents, end of period $ 802 $ - $ 802 $ -
COMMONWEALTH ALUMINUM CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
At June 30,
1996 1995
ASSETS
Cash and cash equivalents $ 802 $ -
Accounts receivable 102,410 124,017
Inventories 106,067 109,951
Due (to) from broker (2,316) 1,207
Prepayments and other current assets 5,925 5,786
Total current assets 212,888 240,961
Property, plant and equipment 185,669 194,854
Other non-current assets 3,737 305
Total assets $402,294 $436,120
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 36,408 $ 45,284
Accrued liabilities 12,907 13,003
Accrued income taxes - 5,387
Deferred (losses) gains - unrealized (2,316) 1,207
Short-term borrowings - 22,600
Current portion of long-term loan 6,862 7,500
Total current liabilities 53,861 94,981
Payable to Lockheed-Martin 3,492 6,528
Long-term debt 30,307 40,625
Pension benefits 18,788 13,281
Postretirement liabilities 79,061 76,827
Total liabilities 185,509 232,242
Common stock 102 102
Additional paid-in capital 301,324 301,041
Accumulated deficit (80,075) (94,738)
Unearned compensation (2,297) (2,527)
Minimum pension adjustment (2,269) -
Total stockholders' equity 216,785 203,878
Total liabilities and
stockholders' equity $402,294 $436,120
CONTACT: Commonwealth Aluminum Corporation, Louisville Henry E. Ford, 502/295-5372 |
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