Century Aluminum Reports Third Quarter 2013 Results

CHICAGO, IL -- (Marketwired) -- 11/04/13 -- Century Aluminum Company (NASDAQ: CENX) reported a net loss of $9.5 million ($0.11 per basic and diluted common share) for the third quarter of 2013. Cost of sales for the quarter included a $5.8 million benefit for lower of cost or market inventory adjustments and an $11.7 million benefit for deferred power contract liability amortization.

In the third quarter of 2012, Century reported a net loss of $12.0 million ($0.14 per basic and diluted share). Financial results were positively impacted by a net benefit of $4.1 million related to certain litigation items. Cost of sales for the quarter included an $8.2 million benefit for lower of cost or market inventory adjustments.

Sales for the third quarter of 2013 were $399.9 million, compared with $304.6 million for the third quarter of 2012. Shipments of primary aluminum for the 2013 third quarter were 212,797 tonnes, compared with 163,431 tonnes shipped in the year-ago quarter. Sales and shipments of primary aluminum for the third quarter of 2013 both benefited from the June 2013 acquisition of the Sebree, KY aluminum smelter. During the quarter, the Sebree acquisition added $101.5 million in sales and 45,843 tonnes in primary aluminum shipments.

For the first nine months of 2013, Century reported a net loss of $30.6 million ($0.35 per basic and diluted share). These results were positively impacted by an unrealized gain of $16.2 million primarily related to a LME-based contingent obligation, a gain on bargain purchase of $5.3 million and deferred power contract liability amortization of $14.5 million. Results were negatively impacted by a non-cash charge of $3.3 million for the early extinguishment of our 8.0% Senior Notes and a charge of $4.7 million for severance and other expenses related to our corporate headquarters relocation. Cost of sales in the first nine months of 2013 included a $10.3 million charge for lower of cost or market inventory adjustments.

This result compares to a net loss of $28.7 million ($0.32 per basic and diluted share) for the first nine months of 2012. These results were negatively impacted by an unrealized net loss on forward contracts of $3.2 million primarily related to the mark to market of aluminum price protection options. Results were positively impacted by a net benefit of $4.1 million related to certain litigation items. Cost of sales in the first nine months of 2012 included a $19.8 million benefit for lower of cost or market inventory adjustments.

Sales in the first nine months of 2013 were $1,053.1 million compared with $954.4 million in the same period of 2012. Shipments of primary aluminum for the first nine months of 2013 were 547,843 tonnes compared with 484,226 tonnes for the comparable 2012 period. Sales and shipments of primary aluminum for the first nine months were higher by $140.3 million and 63,522 tonnes, respectively, as a result of the Sebree smelter acquisition.

"We continue to operate in an uncertain global environment," commented Michael A. Bless, President and Chief Executive Officer. "Widespread and consistent recovery in developed and developing economies has been elusive. China has not developed momentum in driving more robust consumer activity, and potential problems in the financial system remain a concern. In the U.S. and Europe, political instability has led to predictable uncertainty on the part of people making investment decisions. In our sector, we have seen some hopeful signs. Demand continues to be relatively strong in most markets. Supply closures, though each individually small in the context of the broader market, have continued to build. Volatility caused by the potential for changes in the LME's warehousing rules has diminished. On balance, however, we will continue to manage the company with a bias toward downside risk in broad market conditions.

"We believe we have made good progress managing those items under our control," continued Mr. Bless. "Safety performance improved throughout the quarter, after a rough start at Sebree. Key performance indicators have been uniformly good; recent high purity production at Hawesville and billet production at Sebree have been at record levels. Most importantly, production costs have improved. As previously announced, we received approval from the Kentucky Public Service Commission for Hawesville's new power contract, and have been successfully purchasing market-based power since late August. Grundartangi's investment projects continue on track; we expect to produce finished anodes at our new plant in the Netherlands in December.

"We are focused on the important next steps for our power arrangements in Kentucky. For Hawesville, we are working with the regulators toward finalizing the procedures necessary for future grid stability and energy import capability; we expect to complete this process in late 2013 or early 2014. Century and Big Rivers plan to file the market-based power contract for Sebree soon, allowing for approval by the PSC before the termination of the current contract on January 31, 2014. We continue to work toward creating the conditions necessary for a restart of Ravenswood and of the Helguvik project; while there is not a solution at hand on either matter, discussions with the various parties remain active and we are committed to finding a solution."

Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Chicago, Illinois. More information can be found at www.centuryaluminum.com.

Century Aluminum's quarterly conference call is scheduled for 5:00 p.m. Eastern time today. To listen to the conference call and to view related presentation materials, visit www.centuryaluminum.com and click on the conference call link on the homepage. The webcast will be archived on our website and available for replay approximately two hours following the live call.

Cautionary Statement
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements about future, not past, events and involve certain important risks and uncertainties, any of which could cause our actual results to differ materially from those expressed in our forward-looking statements. Such risks and uncertainties may include, without limitation, declines in aluminum prices or increases in our operating costs; worsening of global financial and economic conditions; increases in global aluminum inventories and the addition of new or restarted global aluminum production capacity; weakening of the company's U.S. customer markets; and our ability to successfully obtain long-term competitive power arrangements for our U.S. plants. Forward-looking statements in this press release include, without limitation, statements regarding our ability to successfully restart operations at our Vlissingen plant; our ability to finalize the wholesale power arrangement for our Hawesville smelter and achieve a similar arrangement at our Sebree smelter; and our ability to successfully progress the potential restart of our Ravenswood smelter and Helguvik project. More information about these risks, uncertainties and assumptions can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K and in other filings made with the Securities and Exchange Commission. We do not undertake, and specifically disclaim, any obligation to revise any forward-looking statements to reflect the occurrence of future events or circumstances.

Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:

Atli B. Gudmundsson, Senior Manager -- Corporate Finance, Landsbankinn hf.
Steingrimur Helgason, Director -- Corporate Finance, Landsbankinn hf.


                          CENTURY ALUMINUM COMPANY
                   CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except per share amounts)
                                (Unaudited)

                               Three months ended      Nine months ended
                                  September 30,           September 30,
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------
NET SALES:
  Third-party customers      $  271,016  $  170,023  $  680,480  $  542,884
  Related parties               128,912     134,612     372,659     411,560
                             ----------  ----------  ----------  ----------
                                399,928     304,635   1,053,139     954,444

  Cost of goods sold            387,574     301,385   1,028,901     924,645
                             ----------  ----------  ----------  ----------

Gross profit                     12,354       3,250      24,238      29,799

  Other operating expenses -
   net                            2,174       7,388       6,288      14,926
  Selling, general and
   administrative expenses       14,422       9,182      45,875      24,792
                             ----------  ----------  ----------  ----------

Operating loss                   (4,242)    (13,320)    (27,925)     (9,919)

  Interest expense - third
   party - net                   (5,265)     (5,969)    (17,248)    (17,642)
  Interest income - related
   parties                            -           -           -          62
  Net gain (loss) on forward
   and derivative contracts         440        (340)     16,151      (4,049)
  Gain on bargain purchase            -           -       5,253           -
  Loss on early
   extinguishment of debt             -           -      (3,272)          -
  Other income (expense) -
   net                              213       7,648      (1,001)      8,115
                             ----------  ----------  ----------  ----------

Loss before income taxes and
 equity in earnings of joint
 ventures                        (8,854)    (11,981)    (28,042)    (23,433)

  Income tax expense             (1,384)     (1,168)     (4,714)     (7,384)
                             ----------  ----------  ----------  ----------

Loss before equity in
 earnings of joint ventures     (10,238)    (13,149)    (32,756)    (30,817)

  Equity in earnings of
   joint ventures                   731       1,126       2,118       2,116
                             ----------  ----------  ----------  ----------

Net loss                     $   (9,507) $  (12,023) $  (30,638) $  (28,701)
                             ==========  ==========  ==========  ==========

Net loss allocated to common
 shareholders                $   (9,507) $  (12,023) $  (30,638) $  (28,701)

LOSS PER COMMON SHARE
  Basic and Diluted          $    (0.11) $    (0.14) $    (0.35) $    (0.32)

WEIGHTED AVERAGE COMMON
 SHARES OUTSTANDING
  Basic and Diluted              88,611      88,468      88,588      88,549



                          CENTURY ALUMINUM COMPANY
                        CONSOLIDATED BALANCE SHEETS
                     (In thousands, except share data)
                                (Unaudited)

                                               September 30,   December 31,
                    ASSETS                          2013           2012
                                               -------------  -------------
Cash and cash equivalents                      $     140,801  $     183,976
Restricted cash                                        3,273            258
Accounts receivable - net                             51,247         50,667
Due from affiliates                                   24,955         37,870
Inventories                                          231,505        159,925
Prepaid and other current assets                      40,708         34,975
Deferred taxes - current portion                      19,720         19,726
                                               -------------  -------------
  Total current assets                               512,209        487,397
Property, plant and equipment - net                1,239,201      1,188,214
Other assets                                         108,221        100,715
                                               -------------  -------------
  TOTAL                                        $   1,859,631  $   1,776,326
                                               =============  =============

     LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable, trade                        $     105,950  $      75,370
Due to affiliates                                     71,739         39,737
Accrued and other current liabilities                 72,921         40,099
Accrued employee benefits costs                       17,060         18,683
Industrial revenue bonds                               7,815          7,815
Current portion of long-term debt                      2,603              -
                                               -------------  -------------
  Total current liabilities                          278,088        181,704
                                               -------------  -------------

Senior notes payable                                 246,442        250,582
Revolving credit facility                             16,725              -
Accrued pension benefits costs - less current
 portion                                              59,724         67,878
Accrued postretirement benefits costs - less
 current portion                                     144,025        143,105
Other liabilities                                     37,184         40,162
Deferred taxes                                       111,922        110,252
                                               -------------  -------------
  Total noncurrent liabilities                       616,022        611,979
                                               -------------  -------------

SHAREHOLDERS' EQUITY:
Series A Preferred stock (one cent par value,
 5,000,000 shares authorized; 79,734 and
 80,283 issued and outstanding at September
 30, 2013 and December 31, 2012, respectively)             1              1
Common stock (one cent par value, 195,000,000
 shares authorized; 93,469,452 issued and
 88,682,931 outstanding at September 30, 2013;
 93,335,158 issued and 88,548,637 outstanding
 at December 31, 2012)                                   935            933
Additional paid-in capital                         2,508,456      2,507,454
Treasury stock, at cost                              (49,924)       (49,924)
Accumulated other comprehensive loss                (138,680)      (151,192)
Accumulated deficit                               (1,355,267)    (1,324,629)
                                               -------------  -------------
  Total shareholders' equity                         965,521        982,643
                                               -------------  -------------
  TOTAL                                        $   1,859,631  $   1,776,326
                                               =============  =============



                          CENTURY ALUMINUM COMPANY
                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (In thousands)
                                (Unaudited)

                                                     Nine months ended
                                                       September 30,
                                                    2013           2012
                                               -------------  -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                     $     (30,638) $     (28,701)
  Adjustments to reconcile net loss to net
   cash provided by operating activities:
    Unrealized net (gain) loss on forward
     contracts                                          (762)         3,196
    Gain on bargain purchase                          (5,253)             -
    Unrealized gain on E.ON contingent
     obligation                                      (16,428)             -
    Accrued and other plant curtailment costs
     - net                                             3,380          4,025
    Lower of cost or market inventory
     adjustment                                       10,286        (19,818)
    Depreciation                                      49,082         46,925
    Sebree power contract amortization               (14,461)             -
    Debt discount amortization                           586            791
    Pension and other postretirement benefits         (2,674)           673
    Stock-based compensation                             961            412
    Loss on early extinguishment of debt               3,272              -
    Undistributed earnings of joint ventures          (2,118)        (2,116)

    Change in operating assets and
     liabilities:
      Accounts receivable - net                       (1,063)         3,320
      Due from affiliates                             12,915            317
      Inventories                                    (22,848)        31,810
      Prepaid and other current assets                (4,892)        (8,254)
      Accounts payable, trade                         26,547         (8,823)
      Due to affiliates                               32,002            761
      Accrued and other current liabilities            2,209          8,743
      Other - net                                      2,355        (12,176)
                                               -------------  -------------
Net cash provided by operating activities             42,458         21,085
                                               -------------  -------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment          (31,994)       (10,399)
  Nordural expansion - Helguvik                       (2,855)        (5,474)
  Purchase of carbon anode assets and
   improvements                                       (8,519)       (14,185)
  Purchase of Sebree smelter                         (48,058)             -
  Investments in and advances to joint
   ventures                                                -           (275)
  Dividends and payments received on advances
   from joint ventures                                     -          3,166
  Proceeds from sale of property, plant and
   equipment                                             515             89
  Restricted and other cash deposits                  (3,015)             -
                                               -------------  -------------
Net cash used in investing activities                (93,926)       (27,078)
                                               -------------  -------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of debt                                 (249,604)             -
  Proceeds from issuance of debt                     246,330              -
  Borrowings under revolving credit facility          16,725         18,076
  Repayments under revolving credit facility               -        (18,076)
  Debt issuance costs                                 (3,994)             -
  Debt retirement costs                               (1,208)             -
  Repurchase of common stock                               -         (4,033)
  Issuance of common stock - net                          44              -
                                               -------------  -------------
Net cash provided by (used in) financing
 activities                                            8,293         (4,033)
                                               -------------  -------------

CHANGE IN CASH AND CASH EQUIVALENTS                  (43,175)       (10,026)

Cash and cash equivalents, beginning of period       183,976        183,401
                                               -------------  -------------

Cash and cash equivalents, end of period       $     140,801  $     173,375
                                               =============  =============



                          Century Aluminum Company
                           Selected Operating Data
                                 (Unaudited)

                        SHIPMENTS - PRIMARY ALUMINUM

                         Direct (1)                        Toll
               ------------------------------ ------------------------------
                           (000)                          (000)     $ (000)
                 Tonnes    Pounds    $/Pound    Tonnes    Pounds    Revenue
               --------- --------- ---------- --------- --------- ----------
2013
3rd Quarter      140,120   308,911 $     0.96    72,677   160,225 $  101,381
2nd Quarter      106,284   234,316       0.98    69,986   154,293    101,290
1st Quarter       93,472   206,070       1.06    65,304   143,971    103,973
               --------- --------- ---------- --------- --------- ----------
Total            339,876   749,297 $     0.99   207,967   458,489 $  306,644
               ========= ========= ========== ========= ========= ==========

2012
3rd Quarter       95,747   211,086 $     0.98    67,684   149,217 $   97,939
2nd Quarter       93,831   206,862       1.05    66,997   147,704    105,756
1st Quarter       94,087   207,426       1.06    65,880   145,240    106,416
               --------- --------- ---------- --------- --------- ----------
Total            283,665   625,374 $     1.03   200,561   442,161 $  310,111
               ========= ========= ========== ========= ========= ==========

(1) Does not include Toll shipments from Nordural Grundartangi


Century Aluminum Contacts:
Mike Dildine
(media)
312-696-3142

Shelly Harrison
(investors)
312-696-3140

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