Century Aluminum Reports First Quarter 2005 Earnings.MONTEREY Monterey (mŏntərā`), city (1990 pop. 31,954), Monterey co., W Calif., a port on Monterey Bay; founded 1770, inc. 1850. It is a popular resort, the home of many artists and writers, and one of California's oldest cities. , Calif. -- Century Aluminum Company (Nasdaq:CENX) reported net income of $11.1 million, or $0.35 a share, for the first quarter of 2005. Reported first quarter net income was negatively impacted by 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. charge of $14.8 million, or $0.46 a share, for mark to market adjustments on forward contracts that do not qualify for cash flow hedge A cash flow hedge is a hedge of the exposure to the variability of cash flow that
Net income in the first quarter of 2004 was $4.8 million, or $0.20 a share. First quarter 2004 net income included net after-tax charges of $6.7 million, or $0.31 a share, which were principally related to mark to market adjustments on forward contracts. Financial results for the first quarter of 2004 excluded Nordural, which was acquired on April 27, 2004. Sales in the 2005 first quarter were $285.4 million, compared to $232.1 million in the year-ago quarter. 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. for the first quarter was $41.8 million, up 32-percent from $31.6 million the same period a year ago. Shipments of primary aluminum totaled 337.0 million pounds, up from 296.7 million pounds in the first quarter of 2004. Excluding Nordural toll volume, direct shipments were down 10.0 million pounds, reflecting slightly lower production rates, and one fewer production day in the first quarter of 2005 versus 2004. "Our operating income approached record levels in the first quarter," said Craig Davis
Craig “Buster” Davis (born October 2, 1985, in New Orleans, Louisiana) is a wide receiver drafted by the San Diego Chargers. , Chairman and Chief Executive Officer. "While we benefited from robust aluminum prices, we will continue to focus on improving our operations and reducing costs." Century owns 615,000 metric tonnes per year (mtpy mtpy Metric Tons Per Year ) of primary aluminum capacity. The company owns and operates a 244,000 mtpy plant at Hawesville, Kentucky Hawesville is a city in Hancock County, Kentucky, along the Ohio River. The population was 971 at the 2000 census. It is included in the Owensboro, Kentucky Metropolitan Statistical Area. It is the county seat of Hancock CountyGR6. ; a 170,000 mtpy plant at Ravenswood, West Virginia Ravenswood is a city in Jackson County, West Virginia, along the Ohio River. The population was 4,031 at the 2000 census. Geography Ravenswood is located at (38.952922, -81. ; and a 90,000 mtpy plant at Grundartangi, Iceland Iceland, Icel. Ísland, officially Republic of Iceland, republic (2005 est. pop. 297,000), 39,698 sq mi (102,819 sq km), the westernmost state of Europe, occupying an island in the Atlantic Ocean just S of the Arctic Circle, c. that will be expanded to 212,000 mtpy in 2006. The company also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt. Holly holly, common name for members of the Aquifoliaceae, a family of widely distributed trees and shrubs, most numerous in Central and South America. The evergreen English holly (Ilex aquifolium , South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. . Alcoa Alcoa U.S. company, the world's largest producer of aluminum. Established in Pittsburgh, Pa., in 1888, it adopted the name Aluminum Co. of America in 1907. Alcoa introduced aluminum foil in 1910 and found uses for aluminum in the emerging aviation and automobile industries. Inc. owns the remainder of the plant and is the operating partner. Century also holds a 50-percent share of the 1.25 million mtpy Gramercy gra·mer·cy interj. Archaic Used to express surprise or gratitude. [Middle English gramerci, from Old French grand merci : grand, great; see grand + Alumina alumina (əl  `mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. refinery in Gramercy, Louisiana Gramercy is a town in St. James Parish, Louisiana, United States. The population was 3,066 at the 2000 census. GeographyGramercy is located at (30.053907, -90.689154)GR1. and related bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities. assets in Jamaica Jamaica (jəmā`kə), independent state within the Commonwealth (2005 est. pop. 2,732,000), 4,232 sq mi (10,962 sq km), coextensive with the island of Jamaica, West Indies, S of Cuba and W of Haiti. . Century's corporate offices are located in Monterey, California For other uses, see Monterey (disambiguation). The City of Monterey is located on Monterey Bay along the Pacific coast in central California. As of 2005, the city population was 30,641. . This press release may contain "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of U.S. federal securities laws. The company has based its forward-looking statements on current expectations and projections about the future, however, these statements are subject to risks, uncertainties and assumptions, any of which could cause the company's actual results to differ materially from those expressed in its forward-looking statements. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and in other filings made with the Securities and Exchange Commission. The company does not undertake, and specifically disclaims, any obligation to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or after the date such forward-looking statements are made.
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended
March 31,
-------------------
2005 2004
--------- ---------
NET SALES:
Third-party customers $247,425 $192,346
Related parties 37,971 39,748
--------- ---------
285,396 232,094
COST OF GOODS SOLD 234,788 195,045
--------- ---------
GROSS PROFIT 50,608 37,049
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 8,796 5,408
--------- ---------
OPERATING INCOME 41,812 31,641
INTEREST EXPENSE - Net (6,466) (10,607)
NET LOSS ON FORWARD CONTRACTS (23,495) (12,820)
OTHER INCOME (EXPENSE) 407 (614)
--------- ---------
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS
OF JOINT VENTURE 12,258 7,600
INCOME TAX EXPENSE (6,479) (2,800)
--------- ---------
INCOME BEFORE EQUITY IN EARNINGS OF JOINT VENTURE 5,779 4,800
EQUITY IN EARNINGS OF JOINT VENTURE 5,348 -
--------- ---------
NET INCOME 11,127 4,800
PREFERRED DIVIDENDS - (500)
--------- ---------
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS $11,127 $4,300
========= =========
EARNINGS PER COMMON SHARE
Basic - Net income $0.35 $0.20
Diluted - Net income $0.35 $0.20
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 32,057 21,195
Diluted 32,129 21,384
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
March 31, December 31,
ASSETS 2005 2004
----------- ------------
Current Assets:
Cash $52,763 $44,168
Restricted cash 1,677 1,678
Accounts receivable - net 87,778 79,576
Due from affiliates 14,269 14,371
Inventories 103,427 108,555
Prepaid and other assets 12,759 10,055
Deferred taxes - current portion 34,370 25,688
----------- ------------
Total current assets 307,043 284,091
Property, plant and equipment - net 863,248 806,250
Intangible asset - net 85,663 86,809
Goodwill 94,844 95,610
Other assets 70,563 58,110
----------- ------------
Total $1,421,361 $1,330,870
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $55,590 $47,479
Due to affiliates 97,030 84,815
Accrued and other current liabilities 49,221 53,309
Accrued employee benefits costs -
current portion 8,458 8,458
Convertible senior notes 175,000 175,000
Industrial revenue bonds 7,815 7,815
Long term debt - current portion 10,589 10,582
----------- ------------
Total current liabilities 403,703 387,458
Senior unsecured notes payable 250,000 250,000
Nordural debt 117,376 80,711
Accrued pension benefit costs - less current
portion 11,070 10,685
Accrued postretirement benefits costs - less
current portion 88,378 85,549
Other liabilities 33,740 34,961
Due to affiliates - less current portion 64,477 30,416
Deferred taxes 73,909 68,273
----------- ------------
Total noncurrent liabilities 638,950 560,595
Shareholders' Equity:
Common stock (one cent par value,
50,000,000 shares authorized;
32,088,270 shares outstanding at
March 31, 2005 and 32,038,297 at
December 31, 2004) 321 320
Additional paid-in capital 416,400 415,453
Accumulated other comprehensive loss (68,354) (52,186)
Retained earnings 30,341 19,230
----------- ------------
Total shareholders' equity 378,708 382,817
----------- ------------
Total $1,421,361 $1,330,870
=========== ============
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Three months ended
March 31,
------------------
2005 2004
--------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $11,127 $4,800
Adjustments to reconcile net income to net cash
provided by operating activities:
Unrealized loss on forward contracts 22,269 9,750
Depreciation and amortization 13,794 11,241
Deferred income taxes 6,479 2,800
Pension and other postretirement benefits 3,214 2,342
Inventory market adjustment - (2,273)
(Gain) Loss on disposal of assets (31) 626
Change in operating assets and liabilities:
Accounts receivable - net (8,202) (9,966)
Due from affiliates 102 (935)
Inventories 5,128 3,663
Prepaid and other assets (1,395) 2,037
Accounts payable, trade (3,175) 922
Due to affiliates (9,146) (7,147)
Accrued and other current liabilities (7,951) 9,740
Other - net (5,148) (928)
--------- --------
Net cash provided by operating activities 27,065 26,672
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (2,540) (1,802)
Nordural expansion (48,988) -
Proceeds from sale of property, plant and
equipment 59 -
--------- --------
Net cash used in investing activities (51,469) (1,802)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings 105,325 -
Repayment of third party debt (68,658) -
Financing fees (4,617) -
Issuance of common stock 949 1,051
--------- --------
Net cash provided by financing activities 32,999 1,051
NET INCREASE IN CASH 8,595 25,921
CASH, BEGINNING OF PERIOD 44,168 28,204
--------- --------
CASH, END OF PERIOD $52,763 $54,125
========= ========
Century Aluminum Company
Selected Operating Data
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll
-------------------------- -------------------------
Metric Pounds Metric Pounds
Tons (000) $/Pound Tons (000) Revenue
-------- -------- -------- ------- -------- --------
2005
-----------
1st Quarter 130,083 286,783 $0.88 22,756 50,168 $33,372
2004
-----------
1st Quarter 134,600 296,743 $0.78 - - -
(1) Does not include Toll shipments from Nordural
FORWARD PRICED SALES - As of March 31, 2005
2005(1) 2006(2) 2007(2) 2008-2010(3)
-------- -------- -------- ------------
Pounds (000) 348,856 370,266 374,565 515,881
Metric Tons 158,239 167,950 169,900 234,000
(1) The forward priced sales in 2005 exclude April 2005
shipments to customers that are priced based upon the
prior month's market price.
(2) The forward priced sales in 2006 and 2007 may increase by
up to 25,200 and 50,400 metric tons respectively,
depending on the market price in the month of sale.
(3) The forward priced sales in 2008 through 2010 may increase
by up to 225,000 metric tons depending on the market price
in the month of sale.
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