Century Reports Fourth Quarter 2001 Net Loss.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)--Feb. 20, 2002 Century Aluminum Company (Nasdaq:CENX) reported a net loss of $14.4 million, or $0.72 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 fourth quarter of 2001. This compares with net income of $8.4 million, or $0.41 a common share, for the fourth quarter of 2000. The 2001 quarter includes certain 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. charges aggregating $4.3 million, or $0.21 a share. These after-tax charges include: $2.5 million, or $0.12 share, for bad debts; a charge of $1.3 million, or $0.06 a share, for 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 write downs; and a charge of $0.5 million, or $0.03 a share, for the retirement of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . For all of 2001 Century reported a net loss of $13.7 million, or $0.74 a share after preferred dividends. This compares with net income of $25.3 million, or $1.25 a share, for all of 2000. Sales in the 2001 fourth quarter were $171.9 million compared with $112 million in the year earlier quarter. Sales for all of 2001 were $654.9 million, compared to $428.6 million in 2000. Shipments of primary aluminum in the 2001 fourth quarter were 254.6 million pounds versus 152.8 million pounds in the 2000 fourth quarter. Shipments for all of 2001 were 918.4 million pounds compared with 581.6 million pounds for 2000. Century's financial results in 2001 included the operations of its 80% share in the primary aluminum plant in Hawesville, KY after April 1, 2001. Commenting on the performance, Century Chairman and Chief Executive Craig Davis
Craig “Buster” Davis (born October 2, 1985, in New Orleans, Louisiana) is a wide receiver drafted by the San Diego Chargers. said: "Our financial results for the quarter and year were disappointing. The recession substantially reduced demand for aluminum. Growth in demand was at the lowest level in more than two decades, contracting by 12.1 percent in the U.S. and by 6.8 percent in the Western World. As a result, aluminum prices were the lowest in 31 months. Our aluminum price realizations in the fourth quarter and year 2001 were $0.05 and $0.03, respectively, lower than last year. "On the positive side, we completed the acquisition of our Hawesville (KY) Operations. One of our stated objectives has been to reduce average cash operating costs operating costs npl → gastos mpl operacionales and to strengthen our ability to withstand industry downturns. We have made great strides in this regard with the acquisition and, as of the start of 2002, by indexing the price of all of our alumina alumina (əl  `mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. purchases to world metal prices. In addition,
commencing this year and continuing through 2003 we have forward sales forward sales npl → ventas fpl a término of metal, including hedges, at prices well above the current depressed DepressedA description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. levels. These factors have lowered the cash operating breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations point in 2002 and 2003 compared with 2001. In addition, we have targets to reduce cash operating costs at Hawesville and Ravenswood Ravenswood may refer to: Film & Literature
"We remain positive on the longer term demand for aluminum in world markets and that we have positioned the company to perform well in stronger markets." 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 a 168,000-mtpy reduction plant at Ravenswood, WV and owns 80 percent of and operates the 237,000-mtpy plant at Hawesville, KY. Glencore Glencore International AG (formerly called Marc Rich & Co AG) is one of the world's largest suppliers of commodities and raw materials, and is also among the world's largest privately held companies. As of 2006, it was Europe's sixth-largest company in terms of turnover. owns the remainder. Century also owns a 49.67 percent interest in a 215,000-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 , SC. 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 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 Year ended
December 31 December 31
-------------------- ------------------------
2001 2000 2001 2000
--------- --------- --------- ----------
NET SALES:
Third-party
customers $ 143,598 $ 76,132 $543,453 $ 299,277
Related parties 28,344 35,848 111,469 129,320
--------- --------- --------- ----------
171,942 111,980 654,922 428,597
COST OF GOODS SOLD 176,689(1) 103,639 634,214(1)(2) 396,139
--------- --------- --------- ----------
GROSS PROFIT (LOSS) (4,747) 8,341 20,708 32,458
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 8,293(3) 4,106 18,598(2)(3) 13,931
--------- --------- --------- ----------
OPERATING INCOME (LOSS) (13,040) 4,235 2,110 18,527
GAIN ON SALE OF FABRICATING
BUSINESSES -- -- -- 5,156
INTEREST INCOME (EXPENSE)
-- Net (10,425) 380 (30,674) 2,267
NET GAIN (LOSS) ON FORWARD
CONTRACTS (27) 4,836 (203) 4,195
OTHER INCOME (EXPENSE) (611)(4) 3,723 2,592(4)(5) 6,461
--------- --------- --------- ----------
INCOME (LOSS) BEFORE INCOME
TAXES (24,103) 13,174 (26,175) 36,606
INCOME TAX BENEFIT
(EXPENSE) 8,927 (4,742) 10,031 (11,301)
--------- --------- --------- ----------
NET INCOME (LOSS) BEFORE
MINORITY INTEREST (15,176) 8,432 (16,144) 25,305
MINORITY INTEREST, NET
OF TAX 822 -- 2,442 --
--------- --------- --------- ----------
NET INCOME (LOSS) (14,354) 8,432 (13,702) 25,305
PREFERRED DIVIDENDS (500) -- (1,500) --
--------- --------- --------- ----------
NET INCOME (LOSS)
AVAILABLE TO COMMON
SHAREHOLDERS $ (14,854) $ 8,432 $(15,202) $ 25,305
========= ========= ========= ==========
EARNINGS (LOSS) PER
COMMON SHARE
Basic $ (0.72) $ 0.41 $ (0.74) $ 1.25
Diluted $ (0.72) $ 0.41 $ (0.74) $ 1.24
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
Basic 20,513 20,339 20,473 20,308
Diluted 20,513 20,480 20,473 20,478
DIVIDENDS PER COMMON
SHARE $ 0.05 $ 0.05 $ 0.20 $ 0.20
2001
----
(1) Includes a charge of $1,991 and $5,166 for net LIFO / LCM
inventory writedowns in the fourth quarter and year respectively.
(2) Includes a reclassification of Hawesville Selling, General and
Administrative expense to Cost of Goods Sold of $4,064 to report
expenses consistently for all locations.
(3) Includes a charge for bad debts of $4,000.
(4) Includes loss on disposal of assets of $874 and $919 in the fourth
quarter and year respectively.
(5) Includes gain from insurance settlements of $3,365.
2000
----
Cost of goods sold for the year ended December 31, 2000, includes a
charge of $45 and $1,631 for net LIFO / LCM inventory writedowns in
the fourth quarter and year respectively.
Other income for the fourth quarter and year ended December 31, 2000,
includes insurance settlements of $3,065 and $6,065,respectively.
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(Unaudited)
December 31, December 31,
2001 2000
-------- --------
ASSETS
Current Assets:
Cash $ 13,388 $ 32,962
Accounts receivable, trade -- net 48,710 31,119
Due from affiliates 19,767 15,672
Inventories 75,217 44,081
Prepaid and other assets 3,573 9,487
-------- --------
Total current assets 160,655 133,321
Property, Plant and Equipment -- net 426,006 184,526
Intangible Asset -- net 146,002 --
Due from affiliates -- Less current portion 8,364 --
Other Assets 35,679 15,923
-------- --------
Total $776,706 $333,770
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 42,394 $ 30,072
Due to affiliates 2,201 3,985
Industrial Revenue Bond 7,815 --
Accrued and other current liabilities 34,065 17,739
Accrued employee benefits costs
-- current portion 7,800 4,824
-------- --------
Total current liabilities 94,275 56,620
Long Term Debt 321,446 --
Accrued Pension Benefit Costs
-- Less current portion 4,017 3,656
Accrued Postretirement Benefit Costs
-- Less current portion 65,627 42,170
Other Liabilities 10,697 6,560
Deferred Taxes 39,542 22,125
-------- --------
Total noncurrent liabilities 441,329 74,511
Minority Interest 23,917 --
Shareholders' Equity:
Convertible Preferred Stock (8.0% cumulative,
500,000 shares outstanding
at December 31, 2001) 25,000 --
Common Stock (one cent par value,
50,000,000 shares authorized; 20,513,287
shares outstanding at December 31, 2001
and 20,339,203 at December 31, 2000) 205 203
Additional paid-in capital 168,414 166,184
Other Comprehensive Income 6,752 --
Retained earnings 16,814 36,252
-------- --------
Total shareholders' equity 217,185 202,639
-------- --------
Total $776,706 $333,770
======== ========
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Year Ended
December 31,
-----------------------
2001 2000
---------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ (13,702) $ 25,305
Adjustments to reconcile net income
to net cash provided by
(used in) operating activities:
Depreciation and amortization 44,433 14,395
Deferred income taxes (10,371) 12,448
Pension and other postretirement
benefits 7,679 797
Inventory market adjustment 5,166 1,631
(Gain) on sale of fabricating
businesses -- (5,156)
(Gain) loss on disposal of assets 919 (337)
Minority Interest (3,939) --
Change in operating assets and
liabilities:
Accounts receivable, trade -- net 7,355 7,380
Due from affiliates 5,190 4,790
Inventories 763 3,086
Prepaids and other assets 4,920 (5,391)
Accounts payable, trade (13,487) (712)
Due to affiliates (1,964) 409
Accrued and other current
liabilities 8,839 17
Other -- net (3,178) (559)
---------- ---------
Net cash provided by operating
activities 38,623 58,103
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and
equipment (14,456) (17,631)
Proceeds from sale of property,
plant and equipment 54 565
Divestitures 98,971 --
Acquisitions (466,814) (94,734)
Restricted cash deposits -- 5,642
---------- ---------
Net cash used in investing activities (382,245) (106,158)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings 321,352 --
Financing Fees (16,568) --
Dividends (5,736) (4,170)
Issuance of preferred stock 25,000 --
---------- ---------
Net cash provided by (used in)
financing activities 324,048 (4,170)
---------- ---------
NET DECREASE IN CASH (19,574) (52,225)
CASH, BEGINNING OF PERIOD 32,962 85,187
---------- ---------
CASH, END OF PERIOD $ 13,388 $ 32,962
========== ==========
Century Aluminum Company
Selected Operating Data
(in Thousands, Except Dollars per Pound)
(Unaudited)
SHIPMENTS -- PRIMARY ALUMINUM
Direct
-------------------------------
Pounds $/Pound
-------- --------
2001
----
4th Quarter 254,616 $ 0.68
3rd Quarter 259,408 $ 0.71
2nd Quarter 255,145 $ 0.74
1st Quarter 149,274 $ 0.74
-------- --------
Total 918,443 $ 0.71
2000
----
4th Quarter 152,787 $ 0.73
3rd Quarter 151,219 $ 0.73
2nd Quarter 149,530 $ 0.73
1st Quarter 128,082 $ 0.75
-------- --------
Total 581,618 $ 0.74
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