COMMONWEALTH ALUMINUM REPORTS YEAR-END RESULTS; DECLARES REGULAR QUARTERLY DIVIDEND.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)--Feb. 18, 1997--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 sales,
shipment and production levels for the fourth quarter ended December December: see month. 31,
1996. Net sales Net SalesThe 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 in the fourth quarter ended December 31, 1996, were $242.0 million compared with $145.1 million for the year- earlier period. Fourth quarter 1996 net earnings totaled $5.6 million, or $0.55 per share, on shipments of 229.4 million pounds compared with net earnings of $4.6 million, or $0.45 per share in the year-earlier period. For the year ended December 31, 1996, Commonwealth Aluminum's net sales were $739.2 million compared with net sales of $671.5 million for 1995. Net income for 1996 was $13.4 million, or $1.31 per share, on shipments of 712 million pounds compared with net income of $33.8 million, or $3.32 per share a year ago. The Company's results for 1996 include the acquisition of CasTech which was completed September September: see month. 20, 1996. During the fourth quarter, the Company recognized a tax benefit of $3.7 million related to the acquisition of CasTech and an adjustment of prior tax provisions. In addition, the Company had compensation-related adjustments in the fourth quarter which increased pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1.1 million. Results for 1996 also include a $1.4 million extraordinary charge associated with the early extinguishment The destruction or cancellation of a right, a power, a contract, or an estate. Extinguishment is sometimes confused with merger, though there is a clear distinction between them. of debt. Results for 1995 included a tax settlement and income from a disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. investment which, together, increased net income by $3.3 million, or $0.32 per share. "Management has already begun to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the operating synergies created by the combination of Commonwealth and CasTech," said Mark V. Kaminski, Chief Executive Officer. "The Lewisport and Newport Newport, town, England Newport, town (1991 pop. 19,758), Isle of Wight, S England. It is also a port and the commercial center of the island, with agricultural markets and light industries (plastics, soft drinks, and woodworking). In the 17th cent. mills set monthly production records every month in the fourth quarter, and the electrical products operations of Alflex shipped record volumes for both the quarter and the year. The Company's shipment volume increase of 21% highlights the fact that Commonwealth continued to gain market share while demand for aluminum sheet declined approximately 7% in 1996. Although margin pressure continues, customer demand and economic conditions are still positive." 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. was up 146% to $9.1 million for the fourth quarter of 1996 compared with $3.7 million for the quarter ended September 30, 1996. Compared with the $4.3 million earned during the fourth quarter last year, operating income was up 112%. On a per unit basis, Commonwealth earned 4.0 cents per pound in operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: in the quarter just ended, compared with 3.3 cents per pound in the same quarter last year. 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. (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 ) for the current quarter were $19.0 million, or $1.86 per share, and $41.8 million or $4.10 per share for the year. "The per unit operating income improvement reflects management's and employees' continued attention to cost reduction and process enhancement. The acquisition further strengthens the Company's competitive position during periods of margin compression compression, external stress applied to an object or substance, tending to cause a decrease in volume (see pressure). Gases can be compressed easily, solids and liquids to a very small degree if at all. while expanding earnings potential when market conditions improve," Kaminski concluded. At quarter's end, Commonwealth reported total assets of $794.6 million and 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 $227.2 million. 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. outstanding was $336.0 million as of December 31, 1996. 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, was payable February February: see month. 17, 1997, to shareholders of record on February 3, 1997. 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 has direct-chill casting facilities in 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. - one of the largest multi-purpose aluminum rolling mills rolling mill: see steel. 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. - and continuous-cast minimills in Ohio and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . Commonwealth also is a leading manufacturer of innovative electrical wiring Electrical wiring in general refers to insulated conductors used to carry electricity, and associated devices. This article describes general aspects of electrical wiring as used to provide power in buildings and structures, commonly referred to as building wiring. products through its Alflex operations in California. -0-
COMMONWEALTH ALUMINUM CORPORATION
Unaudited Consolidated Statements of Income
(in thousands, except per share amounts)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
Net sales $241,950 $145,102 $739,218 $671,501
Cost of goods sold 221,889 135,094 689,906 606,751
Gross profit 20,061 10,008 49,312 64,750
Selling, general and
administrative expenses 10,974 5,699 30,050 22,510
Operating income 9,087 4,309 19,262 42,240
Halco income -- 373 -- 1,636
Other income (expense),
net 228 (279) 76 2,670
Interest expense, net 7,407 822 9,875 3,473
Net income before taxes and
extraordinary item 1,908 3,581 9,463 43,073
Benefit (provision) for
income taxes 3,719 981 5,293 (9,286)
Income before
extraordinary item 5,627 4,562 14,756 33,787
Extraordinary expense
(net of tax) -- -- (1,355) --
Net income $ 5,627 $ 4,562 $13,401 $33,787
Net income per share:
Income before
extraordinary item $ 0.55 $ 0.45 $ 1.44 $ 3.32
Extraordinary charge -- -- (0.13) --
$ 0.55 $ 0.45 $ 1.31 $ 3.32
Weighted average
shares outstanding 10,197 10,191 10,197 10,191
Unaudited Operating and Financial Statistics
(dollars in millions)
Three Months Ended Year Ended
December 31, December 31,
1996 1996
Net sales volume (millions lbs.) 229.4 712.0
Production volume (millions lbs.) 244.5 717.5
Gross profit percent 8.27% 6.67%
Operating income percent 3.76% 2.61%
EBITDA $ 19.00 $ 41.8
EBITDA per share $ 1.86 $ 4.10
Current ratio 2.7x 2.7x
Interest coverage ratio
(EBITDA to interest expense) 2.6x 4.2x
Return on stockholders'
equity (annualized) 10.2% 6.29%
Debt-to-capitalization 60.11% 60.11%
COMMONWEALTH ALUMINUM CORPORATION
Unaudited Consolidated Statements of Cash Flows
(in thousands)
Year Ended
December 31,
1996 1995
Operating activities:
Net income $ 13,401 $33,787
Reduction in valuation allowance (3,419) --
Depreciation and amortization 22,452 18,600
Extraordinary loss 1,505 --
Cash profit 33,939 52,387
Change in working capital and
other net assets 8,096 (32,220)
Net cash (used) provided by
operating activities 42,035 20,167
Investing activities:
Acquisition of business
(net of cash of $1,505) (280,921) --
Debt issue costs (9,921) --
Additions to property, plant and
equipment (14,841) (15,153)
Disposals of property, plant and
equipment 314 304
Net cash used in investing activities (305,369) (14,849)
Financing activities:
Dividends paid on common stock (2,040) (1,528)
Proceeds from short-term borrowings 21,000 25,000
Repayment of short-term borrowings (25,000) (21,000)
Proceeds from long-term loan 343,500 50,000
Repayment of long-term debt (74,847) (5,625)
Payments to former parent company -- (49,500)
Net cash provided by (used for)
financing activities 262,613 (2,653)
Net increase (decrease) in cash for the period (721) 2,665
Cash and equivalents, beginning of period 2,665 --
Cash and equivalents, end of period $ 1,944 $ 2,665
COMMONWEALTH ALUMINUM CORPORATION
Unaudited Consolidated Balance Sheets
(in thousands)
December 31, December 31,
1996 1995
ASSETS
Cash and cash equivalents $ 1,944 $ 2,665
Accounts receivable 146,091 92,355
Inventories 173,911 125,683
Prepayments and other current assets 10,056 6,472
Total current assets 332,002 227,175
Property, plant and equipment 274,095 189,562
Goodwill, net 175,146 --
Other non-current assets 13,339 3,947
Total assets $794,582 $420,684
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $ 82,340 $ 44,284
Accrued liabilities and other 34,195 14,655
Short-term borrowings -- 4,000
Current portion of long-term loan 6,250 10,504
Other current liabilities 2,156 440
Total current liabilities 124,941 73,883
Long-term debt 336,000 33,871
Other long-term liabilities 14,584 3,492
Pension benefits 10,610 18,480
Postretirement benefits and other 81,224 77,895
Total liabilities 567,359 207,621
Common stock 102 102
Additional paid-in capital 301,289 301,114
Accumulated deficit (72,188) (83,549)
Unearned compensation (1,980) (2,335)
Minimum pension adjustment -- (2,269)
Total stockholders' equity 227,223 213,063
Total liabilities and stockholders'
equity $794,582 $420,684
CONTACT: Commonwealth Aluminum Corp., Louisville Tina Gregory, 800/468-5052 Ext. 3255 |
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