Century Reports Third Quarter 2000 Net of $0.21 a Share; Year-Ago Net of $0.76 Included Gain of $1.30 on Sale of Assets.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)--Oct. 24, 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 $4.3 million, or $0.21 a share, for the third quarter of 2000. This compares with $15.3 million, or $0.76 a share, for the third quarter of 1999 that included 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 $26.3 million, or $1.30 a share, from the sale of two aluminum-fabricating businesses. Included in the third quarter 2000 results is an after-tax charge of $0.7 million, or $0.03 a share, from marking aluminum commodity contracts to market; and an income tax benefit of $1.9 million, or $0.09 a share, from a reduction in estimated income taxes. Net income for the first nine months of 2000 was $16.9 million, or $0.83 a share. This compares with $7.4 million, or $0.37 a share, for the corresponding period of 1999. Sales in the third quarter of 2000 were $111.1 million versus $153.0 million in the year ago quarter. Sales in the first nine months of 2000 were $316.6 million compared with $485.4 million in the same period of 1999. Shipments of primary aluminum in the 2000 third quarter totaled 151.2 million pounds against 116.6 million pounds a year ago. Prices for primary aluminum in the quarter just ended averaged $0.73 a pound, compared with $0.66 a pound in the year ago quarter. The company's financial results in 1999 included the operations of the fabricating businesses that were sold September September: see month. 21, 1999. Century currently owns 275,000 mtpy mtpy Metric Tons Per Year of primary aluminum capacity. It owns and operates a 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 the Mt. Holly facility and is the operating partner. Century's corporate offices are in Monterey, CA.
Century Aluminum Company
Consolidated Statements of Operations
(in Thousands, Except Per Share Amounts)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
---------------------- ---------------------
2000 1999 2000 1999
---------- ---------- ---------- ---------
NET SALES:
Third-party customers $78,419 $ 134,334 $ 223,145 $ 428,957
Related parties 32,684 18,711 93,472 56,453
---------- ---------- ---------- ---------
111,103 153,045 316,617 485,410
COST OF GOODS SOLD 103,026 160,189 292,500 491,823
---------- ---------- --------- ----------
GROSS PROFIT (LOSS) 8,077 (7,144) 24,117 (6,413)
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES 3,370 5,396 9,825 13,997
---------- ---------- ---------- ----------
OPERATING INCOME
(LOSS) 4,707 (12,540) 14,292 (20,410)
GAIN ON SALE OF
FABRICATING BUSINESSES - 41,130 5,156 41,130
INTEREST INCOME
(EXPENSE) - Net 399 (1,808) 1,887 (5,360)
NET GAIN (LOSS) ON
FORWARD CONTRACTS (1,116) (763) (641) (3,263)
OTHER INCOME
(EXPENSE) (127) (5) 2,738 (673)
---------- ---------- ---------- ----------
INCOME BEFORE
INCOME TAXES 3,863 26,014 23,432 11,424
INCOME TAX (EXPENSE)
BENEFIT 486 (9,365) (6,559) (2,613)
---------- ---------- ---------- ----------
INCOME BEFORE
EXTRAORDINARY ITEM 4,349 16,649 16,873 8,811
EXTRAORDINARY ITEM -
WRITE-OFF OF
DEFERRED BANK FEES,
NET OF INCOME
TAX BENEFIT OF $766 - (1,362) - (1,362)
---------- ---------- ---------- ---------
NET INCOME $ 4,349 $15,287 $16,873 $ 7,449
========== ========== ========== =========
EARNINGS PER
COMMON SHARE
Basic
Earnings before
extraordinary
item $ 0.21 $ 0.82 $ 0.83 $ 0.43
Extraordinary item $ - $(0.06) $ - $(0.06)
Earnings $ 0.21 $ 0.76 $ 0.83 $ 0.37
Diluted
Earnings before
extraordinary
item $ 0.21 $ 0.81 $ 0.83 $ 0.43
Extraordinary item $ - $(0.06) $ - $(0.06)
Earnings $ 0.21 $ 0.75 $ 0.83 $ 0.37
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING
Basic 20,339 20,202 20,339 20,202
Diluted 20,399 20,354 20,399 20,333
DIVIDENDS PER
COMMON SHARE $ 0.05 $ 0.05 $ 0.15 $ 0.15
Century Aluminum Company
Consolidated Balance Sheets
(Dollars in Thousands)
September 30, December 31,
2000 1999
------------- ------------
(unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 23,079 $ 85,187
Restricted cash equivalents -- 5,642
Accounts receivable, trade - net 32,146 38,499
Due from affiliates 12,531 15,991
Inventories 41,626 44,936
Prepaid and other assets 6,955 6,379
-------- --------
Total current assets 116,337 196,634
PROPERTY, PLANT AND EQUIPMENT - NET 180,831 105,158
OTHER ASSETS 15,579 9,010
-------- --------
TOTAL $312,747 $310,802
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade $ 24,253 $ 29,134
Due to affiliates 2,633 10,737
Accrued and other current
liabilities 16,272 27,770
Accrued employee benefits
costs - current portion 4,774 4,602
-------- --------
Total current
liabilities 47,932 72,243
ACCRUED PENSION BENEFITS COSTS
- Less current portion 3,725 3,589
ACCRUED POSTRETIREMENT BENEFITS
COSTS - Less current portion 41,175 39,391
OTHER LIABILITIES 24,691 15,851
-------- --------
Total noncurrent
liabilities 69,591 58,831
SHAREHOLDERS' EQUITY:
Common Stock (one cent par
value, 50,000,000 shares
authorized; 20,339,203
shares outstanding at
September 30, 2000 and
20,202,538 at December 31,
1999) 203 202
Additional paid-in capital 166,184 164,409
Retained earnings 28,837 15,117
-------- --------
Total shareholders'
equity 195,224 179,728
-------- --------
TOTAL $312,747 $310,802
======== ========
Century Aluminum Company
Consolidated Statements of Cash Flow
(Dollars in Thousands)
(Unaudited)
Nine Months Ended
September 30
------------------------
2000 1999
---------- -----------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net income $ 16,873 $ 7,449
Adjustments to
reconcile net
income to net
cash provided by
(used in) operating
activities:
Depreciation and
amortization 10,726 15,878
Deferred income taxes 5,439 8,278
Pension and other
postretirement
benefits 2,092 (14,560)
Inventory market adjustment 1,631 5,344
Gain on sale of
fabricating
businesses (5,156) (41,130)
Change in operating
assets and liabilities:
Accounts receivable,
trade - net 6,353 (31,049)
Due from affiliates 7,931 5,639
Inventories 5,541 30,048
Prepaids and other assets (2,859) (3,607)
Accounts payable, trade (6,531) 13,663
Due to affiliates (943) (5,580)
Accrued and other
current liabilities (13,594) (7,823)
Other - net 12,673 1,692
---------- -----------
Net cash provided by
(used in) operating
activities 40,176 (15,758)
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of property,
plant and equipment (10,039) (19,639)
Purchase price adjustment
related to business acquisitions - 296
Proceeds from sale of
fabricating businesses - 245,400
Acquisition (94,734) -
Restricted cash deposits 5,642 (4)
---------- -----------
Net cash provided by
(used in)
investing activities (99,131) 226,053
CASH FLOWS FROM
FINANCING ACTIVITIES:
Borrowings - 340,708
Repayment of borrowings - (430,097)
Dividends (3,153) (3,122)
---------- -----------
Net cash used in
financing activities (3,153) (92,511)
---------- -----------
NET INCREASE (DECREASE) IN CASH (62,108) 117,784
CASH, BEGINNING OF PERIOD 85,187 12
---------- -----------
CASH, END OF PERIOD $ 23,079 $117,796
========== ===========
Century Aluminum Company
Selected Operating Data
(in Thousands, Except Dollars per Pound)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------- ----------------------
2000 1999 2000 1999
--------- --------- ---------- ---------
SEGMENT INFORMATION
PRIMARY ALUMINUM
NET SALES
Third-Party Customers $ 78,419 $ 17,183 $ 223,145 $ 43,201
Related Party Customers 32,684 18,711 93,472 56,453
Intersegment -- 41,610 -- 136,848
----------- --------- ----------- ----------
Total $ 111,103 $ 77,504 $ 316,617 $ 236,502
GROSS PROFIT (LOSS)(1) $ 8,077 $ (6,964) $ 24,117 $ (17,187)
SHEET & PLATE PRODUCTS(2)
NET SALES
Third-Party Customers $ -- $117,151 $ -- $ 385,756
GROSS PROFIT (LOSS) $ -- $ (180) $ -- $ 10,774
SHIPMENTS
Direct
-------------------------------
Pounds $/Pound
------------- -------------
PRIMARY ALUMINUM
2000
----
3rd Quarter 151,219 $ 0.73
2nd Quarter 149,530 $ 0.73
1st Quarter 128,082 $ 0.75
1999
----
3rd Quarter 116,583 $ 0.66
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 nine
months ended September 30, 2000 for lower of cost or market
inventory reserves. Gross profit for the three and nine months
ended September 30, 1999 includes non-cash charges of $6,449 and
$7,941 for inventory writedowns and LIFO adjustments.
(2) The sheet and plate business was sold on September 21, 1999.
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