Century Reports First Quarter 2002 Net Loss of $0.19 a Share.Business Editors 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.--(BUSINESS WIRE)--April 23, 2002 Century Aluminum Company (Nasdaq:CENX) reported a net loss of $3.5 million, or $0.19 a common share after preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , for the first quarter of 2002. This compares with net income of $3.2 million, or $0.15 a common share, for the first quarter of 2001. The results for the 2002 first quarter include 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 $0.9 million, or $0.04 a common share, for the partial reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of lower of cost or market lower of cost or market A method for determining an asset's value such that either the original cost or the current replacement cost, whichever is lowest, is used for financial reporting purposes. inventory reserves. Sales in the 2002 first quarter were $179.1 million. This compares with $110.7 million in the year-ago quarter. Shipments of primary aluminum in the first quarter of 2002 were 263.0 million pounds, compared with 149.3 million pounds in the first quarter of 2001. The results for the first quarter 2001 do not include the operations of the aluminum plant at Hawesville, KY that Century acquired in April 2001. Commenting on the results, Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. A. Davis, chairman and chief executive officer, said: "Primary aluminum prices remained relatively low during the first quarter of 2002. Despite the pricing environment, Century continued to generate positive cash flow due to recent improvements in its cost structure and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. positions." Century owns 465,000 metric tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. per year (mtpy mtpy Metric Tons Per Year ) of primary aluminum capacity at three locations. It owns and operates the 168,000-mtpy reduction plant at Ravenswood Ravenswood may refer to: Film & Literature
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 this facility and is the operating partner. Century's corporate offices are in Monterey, CA. Note: Century's press releases 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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The company cautions that such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. Actual results may vary materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the forward-looking statements as a result of various factors.
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended
March 31,
-----------------------
2002 2001
---------- ----------
NET SALES:
Third-party customers $ 154,199 $ 84,090
Related parties 24,901 26,600
---------- ----------
COST OF GOODS SOLD 171,792 102,228
---------- ----------
GROSS PROFIT 7,308 8,462
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 4,177 3,591
---------- ----------
OPERATING INCOME 3,131 4,871
INTEREST INCOME (EXPENSE) -- Net (10,188) 350
NET (LOSS) ON FORWARD CONTRACTS -- (176)
OTHER INCOME (EXPENSE) 30 (121)
---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES (7,027) 4,924
INCOME TAX (EXPENSE) BENEFIT 2,246 (1,773)
---------- ----------
NET INCOME (LOSS) BEFORE MINORITY INTEREST (4,781) 3,151
MINORITY INTEREST 1,313 --
---------- ----------
NET INCOME (LOSS) (3,468) 3,151
PREFERRED DIVIDENDS (500) --
---------- ----------
NET INCOME (LOSS) AVAILABLE TO COMMON
SHAREHOLDERS $ (3,968) $3,151
========== ==========
EARNINGS (LOSS) PER COMMON SHARE
Basic $ (0.19) $ 0.15
Diluted $ (0.19) $ 0.15
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic 20,553 20,360
Diluted 20,553 20,401
DIVIDENDS PER COMMON SHARE $ 0.05 $ 0.05
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
March 31, December 31,
2002 2001
--------- ------------
ASSETS
Current Assets:
Cash $ 26,243 $ 13,388
Accounts receivable, trade -- net 49,659 48,710
Due from affiliates 22,274 19,767
Inventories 78,318 75,217
Prepaid and other assets 4,133 3,573
--------- ------------
Total current assets 180,627 160,655
Property, Plant and Equipment -- net 420,565 426,006
Intangible Asset -- net 139,438 146,002
Due from Affiliates -- Less current portion 4,719 8,364
Other Assets 35,710 35,679
--------- ------------
Total $ 781,059 $776,706
========= ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 35,646 $ 42,394
Due to affiliates 15,909 2,201
Industrial revenue bonds 7,815 7,815
Accrued and other current liabilities 41,915 34,065
Accrued employee benefits costs --
current portion 8,001 7,800
--------- ------------
Total current liabilities 109,286 94,275
Long Term Debt 321,543 321,446
Accrued Pension Benefit Costs -- Less
current portion 5,060 4,017
Accrued Postretirement Benefits Costs --
Less current portion 66,586 65,627
Other Liabilities 9,176 10,697
Deferred Taxes 36,257 39,542
--------- ------------
Total noncurrent liabilities 438,622 441,329
Minority Interest 22,605 23,917
Shareholders' Equity:
Convertible Preferred Stock (8.0%
cumulative, 500,000 shares outstanding) 25,000 25,000
Common Stock (one cent par value,
50,000,000 shares authorized;
20,553,635 shares outstanding at
March 31, 2002 and 20,513,287 at
December 31, 2001) 206 205
Additional Paid-In Capital 168,953 168,414
Other Comprehensive Income 4,576 6,752
Retained Earnings 11,811 16,814
--------- ------------
Total shareholders' equity 210,546 217,185
--------- ------------
Total $781,059 $776,706
========= ============
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Three months ended
March 31,
---------------------
2002 2001
-------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $(3,468) $ 3,151
Adjustments to reconcile net income
(loss) to net cash provided by
(used in) operating activities:
Depreciation and amortization 14,075 2,986
Deferred income taxes (2,339) 1,774
Pension and other postretirement benefits 2,202 1,110
Inventory market adjustment (1,473) 105
Minority Interest (1,313) --
Change in operating assets and liabilities:
Accounts receivable, trade -- net (1,294) (5,163)
Due from affiliates (285) 2,145
Inventories (1,627) 75
Prepaids and other assets (199) (786)
Accounts payable, trade (6,748) (6,357)
Due to affiliates 12,908 738
Accrued and other current liabilities 9,663 (3,500)
Other -- net (303) 1,582
-------- ---------
Net cash provided by (used in)
operating activities 19,799 (2,140)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (5,918) (2,803)
Proceeds from sale of property, plant
and equipment -- 22
-------- ---------
Net cash used in investing activities (5,918) (2,781)
CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends (1,026) (1,022)
-------- ---------
Net cash provided by (used in)
financing activities (1,026) (1,022)
-------- ---------
NET INCREASE (DECREASE) IN CASH 12,855 (5,943)
CASH, BEGINNING OF PERIOD 13,388 32,962
-------- ---------
CASH, END OF PERIOD $26,243 $ 27,019
======== =========
Century Aluminum Company
Selected Operating Data
(in Thousands, Except Dollars per Pound)
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct
-----------------------
Pounds $/Pound
2002
1st Quarter 263,019 $ 0.68
-------- -------
2001
1st Quarter 149,274 $ 0.74
-------- -------
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