Century Reports Second Quarter 2000 Net Income of $0.34 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)--July 25, 2000 Century Aluminum Company (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CENX) reported net income of $6.9 million, or $0.34 a share, for the second quarter of 2000. This compares with a net loss of $5.1 million, or $0.25 a share, for the second quarter of 1999. Net income for the 2000 quarter includes 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. gain of $3.3 million, or $0.16 a share, from post-closing adjustments on the sale of its aluminum fabricating businesses in 1999. It also includes an after-tax partial settlement of $1.9 million, or $0.09 a share, on an insurance claim filed by the company to recover losses from an illegal strike at the company's Ravenswood Ravenswood may refer to: Film & Literature
The loss for the 1999 quarter included a net after-tax loss of $2.6 million, or $0.13 a share, for inventory writedowns, LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack adjustments, marking aluminum commodity contracts to market and a reduction in estimated income taxes. Sales in the second quarter of 2000 were $109.1 million, compared with $169.0 million for the second quarter of 1999. Net income for the first six months of 2000 totaled $12.5 million, or $0.62 a share. This compares with a loss of $7.8 million, or $0.39 a share, in the like period of 1999. Sales in the first six months of 2000 were $205.5 million, compared with $332.4 million in the year-ago period. The 2000 second quarter performance includes the results from an additional 23-percent share in an aluminum 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 that the company acquired in April. As a result of the acquisition, shipments of primary aluminum in the second quarter of 2000 rose to 149.6 million pounds from128.1 million pounds in the first quarter of 2000. The performance in the year-ago quarter included the results of fabricating businesses that were sold in the third quarter of 1999. Commenting on the performance, Century Chairman and Chief Executive Craig Craig , Edward Gordon 1872-1966. British theatrical producer, director, and designer whose innovative productions and simplified stage designs influenced modern theater. A. Davis said: "Our performance in the quarter just ended benefited from a 16 percent rise in price realizations from a year ago and from the acquisition in April of an additional 50,000 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 cost-competitive capacity at the Mt.Holly plant. Though much improved from a year-ago, our price realizations were off $0.02 a pound from the levels of the first quarter due to declining prices on the London Metal Exchange London Metal Exchange (LME) A market for trading base metals, where traded options contracts are available against the underlying futures contract. . "We are encouraged by positive fundamentals in our industry. Metal inventories are low and demand is robust in all geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. markets. At the same time, some primary aluminum production in the U. S. has been curtailed due to a shortage of electrical power at affordable rates. All of Century's power needs are under contract and priced." Century owns 275,000 mtpy of primary aluminum capacity. The company owns and operates a 168,000-mtpy-reduction plant at Ravenswood, WV and owns a 49.67-percent share in a 215,000-mtpy-reduction plant at Mt. Holly, SC. The company'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 Six months ended
June 30, June 30,
2000 1999 2000 1999
Net Sales:
Third-party customers $ 72,943 $ 145,893 $ 144,726 $ 294,623
Related parties 36,122 23,113 60,788 37,742
-------- --------- --------- ---------
109,065 169,006 205,514 332,365
Cost of Goods Sold 101,192 169,833 189,474 331,633
Gross Profit (Loss) 7,873 (827) 16,040 732
Selling, General and
Administrative Expenses 3,070 4,329 6,455 8,601
Operating Income (Loss) 4,803 (5,156) 9,585 (7,869)
Gain On Sale of
Fabricating Businesses 5,156 -- 5,156 --
Interest Income
(Expense) Net 274 (2,022) 1,488 (3,552)
Net Gain (Loss)
On Forward Contracts (2,250) (2,451) 475 (2,501)
Other Income (Expense) 2,794 (651) 2,865 (669)
Income (Loss) Before
Income Taxes 10,777 (10,280) 19,569 (14,591)
Income Tax (Expense)
Benefit (3,880) 5,200 (7,045) 6,752
Net Income (Loss) $ 6,897 $ (5,080) $ 12,524 $ (7,839)
Earnings (Loss) Per
Common Share
Basic $ 0.34 $ (0.25) $ 0.62 $ (0.39)
Diluted $ 0.34 $ (0.25) $ 0.61 $ (0.39)
Weighted Average
Common Shares
Outstanding
Basic 20,339 20,202 20,339 20,202
Diluted 20,399 20,333 20,399 20,333
Dividends
Per Common Share $ 0.05 $ 0.05 $ 0.10 $ 0.10
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
June 30, December 31,
2000 1999
(unaudited)
Assets
Current Assets:
Cash $ 15,444 $ 85,008
Restricted cash equivalents -- 5,821
Accounts receivable, trade net 32,236 38,499
Due from affiliates 20,176 15,991
Inventories 38,438 44,936
Prepaid and other assets 4,291 6,379
------- -------
Total current assets 110,585 196,634
Property, Plant and Equipment Net 179,104 105,158
Other Assets 15,329 9,010
------- -------
Total $ 305,018 $ 310,802
=========== ===========
Liabilities and Shareholders' Equity
Current Liabilities:
Accounts payable, trade $ 23,794 $ 29,134
Due to affiliates 1,512 10,737
Accrued and other current liabilities 16,371 27,770
Accrued employee benefits costs - current
portion 4,774 4,602
------- -------
Total current liabilities 46,451 72,243
Accrued Pension Benefits Costs -
Less current portion 3,264 3,589
Accrued Postretirement Benefits Costs -
Less current portion 40,111 39,391
Other Liabilities 23,300 15,851
-------- -------
Total noncurrent liabilities 66,675 58,831
Shareholders' Equity:
Common Stock (one cent par value,
50,000,000 shares authorized;
20,339,203 shares outstanding at
June 30, 2000 and 20,202,538 at
December 31, 1999) 203 202
Additional paid-in capital 166,184 164,409
Retained earnings 25,505 15,117
Total shareholders' equity 191,892 179,728
------- -------
Total $ 305,018 $ 310,802
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Six Months Ended
June 30,
2000 1999
Cash Flows From Operating Activities:
Net income $ 12,524 $ (7,839)
Adjustments to reconcile net
income to net cash
provided by (used in)
operating activities:
Depreciation and amortization 6,723 11,255
Deferred income taxes 7,021 (125)
Pension and other postretirement benefits 567 (8,605)
Inventory market adjustment 1,631 --
Gain on sale of fabricating businesses (5,156) --
Change in operating assets and liabilities:
Accounts receivable, trade net 6,283 (12,676)
Due from affiliates 526 8,218
Inventories 8,729 15,307
Prepaids and other assets (1,777) (961)
Accounts payable, trade (6,990) 466
Due to affiliates (2,084) (1,435)
Accrued and other current liabilities (930) (5,066)
Other net (1,033) (2,344)
------ ------
Net cash provided by (used in)
operating activities 26,034 (3,805)
Cash Flows From Investing Activities:
Purchase of property, plant and equipment (4,549) (16,372)
Purchase price adjustment related to
business acquisitions -- 296
Acquisition (94,734) --
Restricted cash deposits 5,821 (3)
-------- --------
Net cash used in investing activities (93,462) (16,079)
Cash Flows From Financing Activities:
Borrowings -- 206,298
Repayment of borrowings -- (183,687)
Dividends (2,136) (2,112)
-------- --------
Net cash provided by (used in) financing
activities (2,136) 20,499
-------- ---------
Net Increase (Decrease) in Cash (69,564) 615
Cash, Beginning of Period 85,008 12
-------- ---------
Cash, End of Period $ 15,444 $ 627
======== =========
Century Aluminum Company
Selected Operating Data
(in Thousands, Except Dollars per Pound)
(Unaudited)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
---- ---- ---- ----
Segment Information
Primary Aluminum
Net Sales
Third-Party Customers $ 72,943 $ 12,675 $ 144,726 $ 26,018
Related Party Customers 36,122 23,113 60,788 37,742
Intersegment -- 46,406 -- 95,238
--------- --------- --------- ---------
Total $ 109,065 $ 82,194 $ 205,514 $ 158,998
Gross Profit (Loss)(1) $ 7,873 $ (6,066) $ 16,040 $ (10,223)
Sheet & Plate Products
Net Sales
Third-Party Customers $ -- $ 133,218 $ -- $ 268,605
Gross Profit $ -- $ 5,239 $ -- $ 10,955
Shipments
Direct
Pounds $/Pound
Primary Aluminum
2000
2nd Quarter 149,530 $ 0.73
1st Quarter 128,082 $ 0.75
1999
2nd Quarter 131,018 $ 0.63
1st Quarter 122,250 $ 0.63
(1) Gross profit includes a non-cash charge of $1,631 in the six
months ended June 30, 2000 for lower of cost or market
inventory reserves. Gross profit for the three and six months
ended June 30, 1999 includes non-cash charges of $1,493 for
inventory writedowns and LIFO adjustments.
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion