Commonwealth Industries Reports Third-Quarter 2004 Results.LOUISVILLE Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky. -- Commonwealth Industries, Inc. (Nasdaq:CMIN Cmin Trough serum concentration, see there )--Strong growth in aluminum shipments --Improved metal margins --Renewed focus on working capital management generates cash --Estimated aluminum shipments for the year of 1 billion pounds Commonwealth Industries, Inc. (Nasdaq:CMIN) today reported third-quarter income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $2.6 million, or $0.15 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $2.8 million, or $0.17 per diluted share, in the third quarter of 2003. Results for the 2004 period include the recognition of net charges totaling $1.5 million, including $5.2 million of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). and other costs associated with the Company's previously announced merger with IMCO In my considered opinion." See digispeak. Recycling recycling, the process of recovering and reusing waste products—from household use, manufacturing, agriculture, and business—and thereby reducing their burden on the environment. Inc., its streamlining activities and the closure of its tube products line, offset by a mark-to-market Mark-to-market Adjustment of the book value or collateral value of a security to reflect current market value. aluminum contract hedge gain of $3.7 million. Exclusive of the $5.2 million of restructuring and other charges and $3.7 million aluminum hedge gain, the Company's income from continuing operations in the third quarter of 2004 would be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.25 per diluted share after those adjustments. Exclusive of the $1.1 million mark-to-market aluminum hedge gain, income from continuing operations in the third quarter of 2003 would have been approximately $0.11 per diluted share after that adjustment. The diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of that exclude the restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. , other costs and mark-to-market hedge gains are not measures defined under accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Management believes these numbers are useful to investors in understanding the results of operations of the Company because they illustrate the impact that the restructuring charges and hedge gains had separately from the Company's operational results. A schedule which reconciles the non-GAAP earnings data presented above to the most comparable financial measure calculated and presented in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP is provided as part of the financial tables included in this release. Commonwealth's President and Chief Executive Officer Steven Ste´ven n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. J. Demetriou said, "In the third quarter, increased pricing and improved shipment volume translated into increased sales, stronger margins and improved earnings from continuing operations net of the effects of the hedge and restructuring activity. Actions taken during the second quarter, including discontinuing certain projects, divesting non-core assets and implementing price increases, have begun to improve bottom line profitability. "Material margins improved in the third quarter due to new pricing arrangements. We expect material margins in the fourth quarter of 2004 and into 2005 to continue to increase and benefit from continued strong demand. Additionally, our renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. focus on working capital management has resulted in the reduction of inventory levels and receivable days outstanding, which contributed to the one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. generation of approximately $10 million in cash during the third quarter. "Excluding the net charges incurred this quarter, we are seeing improvements in our results and are continuing our rigorous focus on productivity gains while positioning the Company for the merger and future success." Third-Quarter 2004 Results Commonwealth's third-quarter aluminum shipments improved 30% from 200.6 million pounds in the 2003 period to 261.5 million pounds in the 2004 period. Improved volumes reflected stronger customer demand across virtually all end-use industries. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight , including aluminum sales to Alflex, improved 37% to $309.3 million in the third quarter of 2004 from $225.1 million in the comparable 2003 period. Third-quarter 2004 gross profit improved 61% to $21.5 million from $13.3 million in the 2003 quarter. Gross profit margin Gross profit margin Gross profit divided by sales, which is equal to each sales dollar left over after paying for the cost of goods sold. gross profit margin A measure calculated by dividing gross profit by net sales. improved to 7.0% from 6.0% in the same period last year. The increase includes the effects of the $3.7 million and $1.1 million mark-to-market net hedge gains in the 2004 and 2003 third quarters respectively. In addition, material margins increased to $0.350 per pound from $0.337 per pound in the third quarter of 2003. Excluding effects of the hedge, third-quarter 2004 material margins increased to $0.336 per pound from $0.332 per pound in the same period of 2003. On a sequential One after the other in some consecutive order such as by name or number. basis, material margins improved $0.028 per pound from $0.308 per pound in the second quarter of 2004 after adjustment for hedge gains and tube inventory write-downs. Third-quarter 2004 manufacturing unit costs declined to $0.241 per pound from $0.248 per pound in the prior-year quarter due to improved volume. As a percent of net sales, selling, general and administrative expenses in the third quarter were 3.2% for the third quarters of 2004 and 2003. The announced sale of the Company's Alflex subsidiary to the Southwire Company was completed on July July: see month. 30. Alflex results are shown as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for all periods in the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. financial statements. First Nine-Month 2004 Results Commonwealth's aluminum shipments increased 32% to 756.4 million pounds in the first nine months of 2004 compared with 572.5 million pounds in the year-earlier period. Improvement in shipments reflected stronger customer demand across virtually all end-use industries. Net sales, including aluminum sales to Alflex, improved 39% to $847.1 million in the first nine months of 2004 from $611.0 million in the comparable prior-year period. Gross profit improved 37% to $40.6 million in the first nine months of 2004 from $29.7 million in the same period of 2003, while gross profit margin decreased slightly to 4.9% in the 2004 period from 5.0% in the 2003 period. Material margins were $0.316 per pound in the first nine months of 2004 compared to $0.347 per pound in the same period of 2003. Adjusted for hedge gains and tube inventory write-downs, material margins were $0.314 per pound in the first nine months of 2004 compared to $0.345 per pound in the comparable 2003 period. Manufacturing unit costs, exclusive of tube write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. charges, declined to $0.235 per pound from $0.271 per pound in the first nine months of 2003. The gross profit improvement in the first nine months of 2004 compared to the prior-year period, despite lower material margins, is principally due to higher shipment volume and lower manufacturing unit costs. Loss from continuing operations for the first nine months of 2004 was $20.3 million, compared with a loss of $4.8 million in the prior-year period. Operating results for the first nine months of 2004 include $18.6 million of restructuring and other charges, $2.1 million net mark-to-market hedge gains and $2.2 million of tube closure costs included in cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold . The first nine months of 2003 include mark-to-market hedge gains of $1.5 million. Exclusive of the $18.6 million of restructuring charges, $2.2 million of tube closure costs and $2.1 million of aluminum hedge gains, the Company's loss from continuing operations in the nine months of 2004 would be approximately $1.6 million, or a loss of $0.10 per diluted share, after those adjustments. Exclusive of the $1.5 million mark-to-market aluminum hedge gain, the loss from continuing operations in the nine months of 2003 would have been approximately $6.3 million, or a loss of $0.39 per diluted share, after the adjustment. The diluted earnings per share that exclude the restructuring charges, other costs and mark-to-market hedge gains are not measures defined under GAAP. As previously stated, management believes these numbers are useful to investors in understanding the results of operations of the Company because they illustrate the impact that the restructuring charges, other costs and hedge gains had separately from the Company's operational results. A schedule which reconciles the non-GAAP earnings data presented above to the most comparable financial measure calculated and presented in accordance with GAAP is provided as part of the financial tables included in this release. As a percent of net sales, selling, general and administrative cost administrative cost Managed care A cost incurred by the 'business' end of a health care facility or university–eg, staffing and personnel costs, nursing home and hospital administration, insurance, and overhead expenses. Cf Indirect costs. decreased to 3.7% in 2004 from 4.0% in 2003. Proposed Merger with IMCO Commonwealth Industries announced a proposed merger with IMCO Recycling on June June: see month. 17, 2004. The Company currently anticipates completion of the merger in the fourth quarter. The completion of the transaction remains subject to approval by Commonwealth and IMCO shareholders. IMCO Recycling and Commonwealth Industries have announced that, following the completion of their proposed merger, they will name the merged company Aleris International, Inc. Commonwealth Industries has commenced a cash tender offer to purchase all of its outstanding $125 million aggregate principal amount of 10 3/4% Senior Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes due 2006 on the terms and conditions set forth in the Offer to Purchase and Consent Solicitation Consent Solicitation A solicitation by one party to the stakeholders of a particular security for the consent of a material change. Notes: Should the majority of stakeholders provide valid consent prior to the consent expiry date, the issuer may then follow through with Statement dated October October: see month. 21, 2004 (the Statement). The consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the tender offer is subject to the conditions set forth in the Statement, including satisfaction of the conditions to the merger. In connection with the tender offer, the Company is also soliciting consents from holders of the Notes for which the Company will pay a consent payment of $10.00 per $1,000 principal amount of Notes to tendering holders of Notes, if the consent solicitation is successful. A public, listen-only simulcast Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. and replay of Commonwealth's third-quarter conference call may be accessed at the Company's web site or http://www.corporate-ir.net/ireye/ ir_site.zhtml?ticker ticker An automated quotation system on which security transactions are reported after they occur on an exchange floor. Even though the newer systems are electronic and no longer actually tick, the name of the old mechanical device has stuck. =CMIN&script (1) A program written in a general-purpose programming language. Such languages are typically interpreted and less comprehensive than full-blown compiled languages. See scripting language and interpreter. =1010&item_id=960743 (Due to its length, this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. may need to be copied/pasted into your Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the browser's address field. Remove the extra space if one exists.) The simulcast will begin at approximately 1:00 p.m. Eastern Daylight For other uses, see Daylight (disambiguation). Daylight or the light of day is the combination of all direct and indirect sunlight outdoors during the daytime (and perhaps twilight). Time on Monday Monday: see week. , November November: see month. 8, and a replay of the webcast will be available beginning at approximately 3:00 p.m. Eastern Daylight Time and will run until December December: see month. 8. Commonwealth Industries is one of North America's leading manufacturers of aluminum sheet for distributors and the transportation, construction, and consumer durables Consumer durables Consumer products that are expected to last three years or more, such as an automobile or a home appliance. consumer durables See durable goods. product industries. The Company has direct-chill casting facilities in Kentucky Kentucky, state, United States Kentucky (kəntŭk`ē, kĭn–), one of the so-called border states of the S central United States. It is bordered by West Virginia and Virginia (E); Tennessee (S); the Mississippi R. and continuous casting Continuous casting is a refinement of the casting process for the continuous, high-volume production of metal sections with a constant cross-section. It allows lower-cost production of metal sections with better quality, due to finer control through automation of the casting mini-mills in Ohio and California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). . For more information about the Company, visit Commonwealth's website at www.ciionline.com. Certain statements set forth above may constitute 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. All statements regarding the consummation of the closing of the merger between Commonwealth and IMCO Recycling Inc., and the Company's and its subsidiaries' expected future financial position, results of operations, cash flows, dividends, financing plans, business strategy, budgets, projected costs, capital expenditures, competitive position and growth opportunities are forward-looking statements. Such forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which the Company is unable to predict or control, that may cause the Company's actual results or performance to materially differ from any future results or performance 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. by such statements. Such factors may include, without limitation, the success of the implementation of the Company-wide information system, our compliance with the provisions of the Sarbanes-Oxley Act See SOX. , the effect of global economic conditions, the ability to achieve the level of cost savings or productivity improvements anticipated by management, including synergies that the IMCO merger are expected to produce, necessary financing for and the timing of the closing of the proposed merger with IMCO, the effect (including possible increases in the cost of doing business) resulting from war or terrorist activities or political uncertainties, the ability to successfully implement new marketing and sales strategies, the impact of competitive products and pricing, product development and commercialization, availability and cost of critical raw materials, the ability to effectively hedge the cost of raw materials, capacity and supply constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. or difficulties, the success of the Company in implementing its business strategy, and other risks as detailed in the Company's various filings with the Securities and Exchange Commission.
COMMONWEALTH INDUSTRIES, INC.
Condensed Consolidated Statement of Operations
(in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2004 2003 2004 2003
--------- --------- --------- ---------
Net sales $308,497 $221,213 $834,385 $598,598
Cost of goods sold 287,022 207,870 793,744 568,890
--------- --------- --------- ---------
Gross profit 21,475 13,343 40,641 29,708
Selling, general and
administrative expenses 9,817 7,109 30,728 24,113
Restructuring and other
charges 5,243 -- 18,580 --
--------- --------- --------- ---------
Operating income (loss) 6,415 6,234 (8,667) 5,595
Other income (expense), net 459 423 1,328 1,331
Interest expense, net (4,230) (3,867) (12,783) (11,621)
--------- --------- --------- ---------
Income (loss) from continuing
operations before income
taxes 2,644 2,790 (20,122) (4,695)
Income tax expense 87 33 130 100
--------- --------- --------- ---------
Income (loss) from continuing
operations 2,557 2,757 (20,252) (4,795)
Discontinued operations:
Income (loss) from operations
before income taxes (752) 168 4,412 (611)
Income (loss) on disposition 11 -- (1,559) --
Income tax expense (benefit) (292) 17 720 50
--------- --------- --------- ---------
Income (loss) from
discontinued operations (449) 151 2,133 (661)
--------- --------- --------- ---------
Net income (loss) $2,108 $2,908 ($18,119) ($5,456)
========= ========= ========= =========
Basic net income (loss) per
share:
Income (loss) from continuing
operations $0.16 $0.17 ($1.25) ($0.30)
Income (loss) from
discontinued operations (0.03) 0.01 0.13 (0.04)
Net income (loss) 0.13 0.18 (1.12) (0.34)
Diluted net income (loss) per
share:
Income (loss) from continuing
operations $0.15 $0.17 ($1.25) ($0.30)
Income (loss) from
discontinued operations (0.03) 0.01 0.13 (0.04)
Net income (loss) 0.13 0.18 (1.12) (0.34)
Weighted average shares
outstanding
Basic 16,435 16,011 16,176 16,011
Diluted 16,568 16,034 16,176 16,011
Dividends paid per share $0.00 $0.00 $0.00 $0.10
COMMONWEALTH INDUSTRIES, INC.
Operating and Financial Statistics
(dollars in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- -------------------
2004 2003 2004 2003
---------- --------- --------- ---------
Net sales volume (1) $309,327 $225,119 $847,069 $611,020
Shipment volume (millions
lbs.) (2) 261.5 200.6 756.4 572.5
Production volume (millions
lbs.) 262.0 186.7 768.3 548.5
Gross profit percent 7.0% 6.0% 4.9% 5.0%
Operating profit percent 2.1% 2.8% (1.0%) 0.9%
Current ratio 2.8x 2.8x 2.8x 2.8x
Interest coverage ratio
(EBITDA to interest expense,
net) 2.9x 2.9x 0.7x 1.8x
Return on average
stockholder's equity
(annualized) 12.4% 11.7% (32.3%) (7.2%)
Debt-to-capitalization 63% 56% 63% 56%
EBITDA (3) $12,112 $11,265 $8,500 $20,666
Note (1) includes sales to discontinued electrical products operations
of $830 and $3,906, respectively, for the one month ended July 31,
2004 and the three months ended September 30, 2003 and $12,684 and
$12,422, respectively, for the seven months ended July 31, 2004 and
the nine months ended September 30, 2003.
Note (2) includes shipments to discontinued electrical products
operations of 0.7 and 4.1, respectively, for the one month ended July
31, 2004 and the three months ended September 30, 2003 and 11.5 and
15.2, respectively, for the seven months ended July 31, 2004 and the
nine months ended September 30, 2003.
Note (3) earnings before interest, income taxes, depreciation and
amortization. See EBITDA Calculation on next page.
COMMONWEALTH INDUSTRIES, INC.
EBITDA Calculation (1)
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 2004 2003
--------- -------- --------- --------
Net cash (used in) continuing
operations ($39,814) ($1,737) ($41,099) ($2,378)
Adjustments to reconcile net
cash (used in) continuing
operations to income (loss)
from continuing operations:
Depreciation (4,971) (4,608) (15,486) (13,740)
Amortization (534) (222) (1,138) (666)
Loss on disposal of property,
plant and equipment (26) (28) (604) (68)
Issuance of common stock in
connection with stock awards (6) -- (212) (90)
Change in working capital and
other net assets 47,908 9,352 38,287 12,147
--------- -------- --------- --------
Income (loss) from continuing
operations 2,557 2,757 (20,252) (4,795)
Add back depreciation 4,971 4,608 15,486 13,740
Add back amortization (2) 267 -- 353 --
Add back tax expense 87 33 130 100
Add back interest expense, net
(2) 4,230 3,867 12,783 11,621
--------- -------- --------- --------
EBITDA $12,112 $11,265 $8,500 $20,666
========= ======== ========= ========
Note (1) EBITDA is used in the calculation of certain covenants under
the Company's credit agreement.
Note (2) amortization of financing costs for the three months ended
September 30, 2004, and 2003 of $267 and $222, respectively, and the
nine months ended September 30, 2004 and 2003 of $785 and $666,
respectively, is included in interest expense, net instead of in
amortization in the above calculation.
COMMONWEALTH INDUSTRIES, INC.
Condensed Consolidated Statement of Cash Flows
(in thousands)
Nine Months Ended
September 30,
------------------
2004 2003
--------- --------
Cash flows from operating activities:
Net income (loss) ($18,119) ($5,456)
(Income) loss from discontinued operations (2,133) 661
Adjustments to reconcile net income (loss) to net
cash (used in) operations:
Depreciation 15,486 13,740
Amortization 1,138 666
Loss on disposal of property, plant and
equipment 604 68
Issuance of common stock in connection with
stock awards 212 90
Change in working capital and other net assets (38,287) (12,147)
--------- --------
Net cash (used in) continuing operations (41,099) (2,378)
Net cash (used in) provided by discontinued
operations (652) 1,567
--------- --------
Net cash (used in) operating activities (41,751) (811)
--------- --------
Cash flows from investing activities:
Proceeds from sale of electrical products
segment 64,041 --
Purchases of property, plant and equipment (6,452) (11,198)
Proceeds from sale of property, plant and
equipment 182 158
--------- --------
Net cash provided by (used in) investing
activities 57,771 (11,040)
--------- --------
Cash flows from financing activities
(Decrease) in outstanding checks in excess of
deposits (947) --
Proceeds from long-tern debt 167,879 75,168
Repayments of long-term debt (167,879) (71,978)
Proceeds from issuance of common stock 1,783 --
Cash dividends paid -- (1,601)
--------- --------
Net cash provided by financing activities 836 1,589
--------- --------
Net increase (decrease) in cash and cash
equivalents 16,856 (10,262)
Cash and cash equivalents at beginning of period -- 13,199
--------- --------
Cash and cash equivalents at end of period $16,856 $2,937
========= ========
COMMONWEALTH INDUSTRIES, INC.
Condensed Consolidated Balance Sheet
(in thousands except share data)
September 30,
-------------------
2004 2003
--------- ---------
Assets
Cash and cash equivalents $16,856 $2,937
Accounts receivable, net 141 158
Inventories 111,555 102,262
Net residual interest in receivables sold 91,140 60,083
Prepayments and other current assets 24,470 4,910
Current assets of discontinued operations 243 35,972
--------- ---------
Total current assets 244,405 206,322
Property, plant and equipment, net 117,790 128,270
Other noncurrent assets 7,836 5,423
Noncurrent assets of discontinued operations -- 63,470
--------- ---------
Total assets $370,031 $403,485
========= =========
Liabilities
Accounts payable $50,672 $41,836
Accrued liabilities 34,284 24,421
Current liabilities of discontinued operations 1,918 8,720
--------- ---------
Total current liabilities 86,874 74,977
Long-term debt 125,000 128,190
Other long-term liabilities 3,256 3,921
Accrued pension benefits 23,533 26,043
Accrued postretirement benefits 58,368 70,085
Noncurrent liabilities of discontinued operations 775 1,000
--------- ---------
Total liabilities 297,806 304,216
--------- ---------
Commitments and contingencies -- --
Stockholders' Equity
Common stock, $0.01 par value, 50,000,000 shares
authorized, 16,644,343 and 16,010,971 shares
outstanding at September 30, 2004 and 2003,
respectively 166 160
Additional paid-in capital 410,103 405,703
Accumulated deficit (326,596) (284,999)
Unearned compensation (2,058) --
Accumulated other comprehensive income:
Minimum pension liability adjustment (21,276) (21,391)
Effects of cash flow hedges 11,886 (204)
--------- ---------
Total stockholders' equity 72,225 99,269
--------- ---------
Total liabilities and stockholders' equity $370,031 $403,485
========= =========
COMMONWEALTH INDUSTRIES, INC.
Reconciliation of Non-GAAP Earnings Data to Most Comparable Financial
Measure Calculated and Presented in Accordance with GAAP (1)
(in thousands except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ ------------------
2004 2003 2004 2003
--------- -------- --------- --------
Income (loss) from continuing
operations $2,557 $2,757 ($20,252) ($4,795)
add back restructuring and
other charges 5,243 -- 18,580 --
add back tube closure costs
included in cost of goods
sold -- -- 2,208 --
deduct mark-to-market
aluminum hedge gains (3,645) (1,027) (2,090) (1,455)
--------- -------- --------- --------
Income (loss) from continuing
operations excluding
restructuring and other charges
and hedge gains $4,155 $1,730 ($1,554) ($6,250)
========= ======== ========= ========
Basic net income (loss) per
share:
Income (loss) from continuing
operations $0.16 $0.17 ($1.25) ($0.30)
Restructuring and other
charges 0.32 -- 1.15 --
Tube closure costs included
in cost of goods sold -- -- 0.14 --
Mark-to-market aluminum hedge
gains (0.22) (0.06) (0.13) (0.09)
Income (loss) from continuing
operations excluding
restructuring and other
charges and hedge gains 0.25 0.11 (0.10) (0.39)
Diluted net income (loss) per
share:
Income (loss) from continuing
operations $0.15 $0.17 ($1.25) ($0.30)
Restructuring and other
charges 0.32 -- 1.15 --
Tube closure costs included
in cost of goods sold -- -- 0.14 --
Mark-to-market aluminum hedge
gains (0.22) (0.06) (0.13) (0.09)
Income (loss) from continuing
operations excluding
restructuring and other
charges and hedge gains 0.25 0.11 (0.10) (0.39)
Weighted average shares
outstanding
Basic 16,435 16,011 16,176 16,011
Diluted 16,568 16,034 16,176 16,011
Note (1) GAAP = generally accepted accounting principles accepted
in the United States of America.
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