Century Reports Second Quarter 2001 Income of $0.04 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 24, 2001 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 for the second quarter of 2001 of $1.3 million. After the dividend on the newly issued preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , earnings were $0.04 a share. This compares with net income of $6.9 million, or $0.34 a share, for the second quarter of 2000. The second quarter of 2001 performance includes the results from the 80 percent share in the primary aluminum plant at Hawesville, KY that the company acquired on April 1. The second quarter 2000 results include $3.8 million, or $0.18 a share, of special items (post-closing adjustments from the sale fabricating businesses, partial settlement of an insurance claim and marking aluminum contracts to market). Reflecting the Hawesville acquisition, performance measures grew significantly in the second quarter of 2001: -- Sales rose to $188.9 million from $109.1 million for the second quarter of 2000; -- Primary aluminum shipments increased to 255.1 million pounds from 149.5 million pounds a year ago; and -- Operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before before income taxes, depreciation and amortization (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 ) totaled $24.7 million compared with $8.7 million in the year-ago quarter. The increase in EBITDA of $16.0 million more than covered the interest expense of $10.3 million. Net income for the first six months of 2001 totaled $4.5 million, or $0.20 a share after the preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) . This compares with $12.5 million, or $0.62 a share, in the like period of 2000. Sales in the first six months of 2001 were $299.6 million, compared with $205.5 million in the year-ago period. 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: "The drop in demand for aluminum due to the U. S. -led economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. has been only partially offset by the substantial number of primary aluminum plant closures. Although the slowdown has affected current results, we remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op on the medium- to longer-term fundamentals for aluminum. "The Hawesville acquisition is a very positive transaction for Century. As our lowest cost plant, Hawesville reduces our overall cash operating costs operating costs npl → gastos mpl operacionales . It also increases our revenue base and improves our product mix. Hawesville strengthens our competitive position and cash-generating capabilities. Our attention is focused on achieving cost savings there and at Ravenswood Ravenswood may refer to: Film & Literature
Century has 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 capacity at three locations. Century owns and operates a 168,000-mtpy plant at Ravenswood, WV; owns 80 percent of and operates a 237,000-mtpy plant at Hawesville, KY; and owns a 49.67 percent share 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 the Mt. Holly 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 Six months ended
June 30, June 30,
-------------------- --------------------
2001 2000 2001 2000
---------- ---------- ---------- ----------
NET SALES:
Third-party customers $159,128 $72,943 $243,218 $144,726
Related parties 29,791 36,122 56,391 60,788
---------- ---------- ---------- ----------
188,919 109,065 299,609 205,514
COST OF GOODS SOLD 172,632 101,192 274,860 189,474
---------- ---------- ---------- ----------
GROSS PROFIT 16,287 7,873 24,749 16,040
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 5,335 3,070 8,926 6,455
---------- ---------- ---------- ----------
OPERATING INCOME 10,952 4,803 15,823 9,585
GAIN ON SALE OF
FABRICATING BUSINESSES - 5,156 - 5,156
INTEREST INCOME (EXPENSE)
- Net (10,341) 274 (9,991) 1,488
NET GAIN (LOSS) ON
FORWARD CONTRACTS - (2,250) (176) 475
OTHER INCOME (EXPENSE) 60 2,794 (61) 2,865
---------- ---------- ---------- ----------
INCOME BEFORE
INCOME TAXES 671 10,777 5,595 19,569
INCOME TAX (EXPENSE) (138) (3,880) (1,911) (7,045)
---------- ---------- ---------- ----------
NET INCOME BEFORE
MINORITY INTEREST 533 6,897 3,684 12,524
MINORITY INTEREST,
NET OF TAX 810 - 810 -
---------- ---------- ---------- ----------
NET INCOME 1,343 6,897 4,494 12,524
PREFERRED DIVIDENDS (500) - (500) -
---------- ---------- ---------- ----------
NET INCOME AVAILABLE
TO COMMON SHAREHOLDERS $ 843 $ 6,897 $ 3,994 $12,524
========== ========== ========== =========
EARNINGS PER COMMON SHARE
Basic $ 0.04 $ 0.34 $ 0.20 $ 0.62
Diluted $ 0.04 $ 0.34 $ 0.19 $ 0.61
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING
Basic 20,502 20,339 20,431 20,339
Diluted 20,651 20,399 20,528 20,339
DIVIDENDS PER COMMON SHARE $ 0.05 $ 0.05 $ 0.10 $ 0.10
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
(unaudited)
June 30, December 31,
2001 2000
---------------- ----------------
ASSETS
Current Assets:
Cash $ 15,353 $ 32,962
Accounts receivable,
trade - net 68,681 31,119
Due from affiliates 17,494 15,672
Inventories 78,147 44,081
Prepaid and other assets 7,685 9,487
------ -----
Total current assets 187,361 133,321
Property, Plant and
Equipment - net 433,458 184,526
Intangible Asset 158,378 -
Other Assets 32,085 15,923
------- ------
Total $ 811,282 $ 333,770
========== =========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable, trade $ 46,443 $ 30,072
Due to affiliates 9,866 3,985
Industrial Revenue Bond 7,815 -
Accrued and other
current liabilities 34,732 17,739
Accrued employee benefits
costs - current portion 5,379 4,824
------ -----
Total current liabilities 104,234 56,620
Long Term Debt 321,250 -
Accrued Pension Benefit Costs
- Less current portion 3,510 3,656
Accrued Postretirement
Benefit Costs - Less current
portion 63,811 42,170
Other Liabilities 6,914 6,560
Deferred Taxes 51,365 22,125
---------------- ----------------
Total noncurrent liabilities 446,849 74,511
Minority Interest 26,393 -
Shareholders' Equity:
Convertible Preferred Stock 25,000 -
Common Stock (one cent par
value, 50,000,000 shares
authorized; 20,513,287 shares
outstanding at June 30, 2001
and 20,339,203 at
December 31, 2000) 205 203
Additional paid-in capital 168,414 166,184
Other Comprehensive Income 2,125 -
Retained earnings 38,062 36,252
---------------- ----------------
Total shareholders' equity 233,806 202,639
---------------- ----------------
Total $ 811,282 $ 333,770
================ ================
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Six Months Ended
June 30,
2001 2000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,494 $12,524
Adjustments to reconcile net
income to net cash provided by
(used in) operating activities:
Depreciation and amortization 16,694 6,723
Deferred income taxes 2,685 7,021
Pension and other postretirement benefits 3,450 567
Inventory market adjustment -- 1,631
Gain on sale of fabricating businesses -- (5,156)
Minority Interest (1,307) --
Change in operating assets and liabilities:
Accounts receivable, trade - net (6,380) 6,283
Due from affiliates 2,683 526
Inventories 4,228 8,729
Prepaids and other assets 2,835 (1,777)
Accounts payable, trade (9,438) (6,990)
Due to affiliates (1,495) (2,084)
Accrued and other current liabilities 6,131 (930)
Other - net 507 (1,033)
-------- --------
Net cash provided by (used in)
operating activities 25,088 26,034
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment (5,641) (4,549)
Proceeds from sale of property,
plant and equipment 22 --
Proceeds from sale of minority interest
in the Hawesville Operation 98,971 --
Acquisitions (464,176) (94,734)
Restricted cash deposits -- 5,821
-------- --------
Net cash used in investing activities (370,824) (93,462)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings 321,250 --
Financing Fees (15,440) --
Dividends (2,684) (2,136)
Issuance of preferred stock 25,000 --
-------- --------
Net cash provided by (used in)
financing activities 328,126 (2,136)
-------- --------
NET INCREASE (DECREASE) IN CASH (17,610) (69,564)
CASH, BEGINNING OF PERIOD 32,963 85,008
-------- --------
CASH, END OF PERIOD $15,352 $15,444
======== ========
Century Aluminum Company
Selected Operating Data
(in Thousands, Except Dollars per Pound)
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct
Pounds $/Pound
2001
2nd Quarter 255,145 $ 0.74
1st Quarter 149,274 $ 0.74
2000
2nd Quarter 149,530 $ 0.73
1st Quarter 128,082 $ 0.75
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