Century Reports 2013 Financial Results

CHICAGO, IL -- (Marketwired) -- 02/20/14 -- Century Aluminum Company (NASDAQ: CENX) reported a net loss of $9.7 million ($0.11 per basic and diluted common share) for the fourth quarter of 2013. Cost of sales for the quarter included a benefit of $16.6 million related to deferred power contract liability amortization and a $9.0 million benefit related to lower of cost or market inventory adjustments. The financial results also included an $8.4 million charge relating to the separation of our former chief executive officer. For the fourth quarter of 2012, the company reported a net loss of $6.9 million ($0.08 per basic and diluted common share).

For 2013, the company reported a net loss of $40.3 million ($0.45 per basic and diluted common share). Financial results were positively impacted by a $31.0 million benefit for deferred power contract liability amortization and an unrealized gain of $16.8 million, primarily related to an LME-based contingent obligation. In addition, the company recorded a gain on bargain purchase of $5.3 million related to the Sebree acquisition. The company also incurred office relocation costs of $5.8 million, a loss on early extinguishment of debt of $3.3 million and an $8.4 million charge relating to the separation of our former chief executive officer.

In 2012, the company reported a net loss of $35.6 million ($0.40 per basic and diluted common share). Financial results were negatively impacted by an unrealized net loss on forward contracts of $3.0 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 included a $19.8 million benefit for lower of cost or market inventory adjustments.

Sales for the fourth quarter of 2013 were $401.2 million compared with $317.7 million for the fourth quarter of 2012. Shipments of primary aluminum for the 2013 fourth quarter were 216,755 tonnes (which includes 50,395 tonnes from the Sebree operation acquired June 1, 2013), compared with 162,303 tonnes shipped in the year-ago quarter. Sales for 2013 were $1,454.3 million compared with $1,272.1 million for 2012, and total 2013 primary aluminum shipments of 764,598 tonnes (including 113,948 tonnes from the Sebree operation), compared with 646,529 tonnes shipped in 2012.

"The last several months closed out what we believe was a successful and forward-looking year for Century," commented Michael Bless, President and Chief Executive Officer. "Most recently, the approval by the Kentucky Public Service Commission of the market-based power contract for Sebree will allow long-term investment in this excellent plant. This action follows the favorable outcome for Hawesville in August. Employees at both smelters worked safely and productively through uncertain times, and their perseverance and dedication produced these gratifying results. Each plant is presently operating at high levels of efficiency and is producing a record amount of value-added products, for which we continue to see strong U.S. market demand. The Grundartangi team had another safe and productive year, as they restarted the anode plant in Vlissingen and continued on pace with the hot metal capacity expansion program; both projects are on time and under budget. We have aggressive plans for the future development of this world class smelter, which we believe is in an excellent position to capitalize on strong demand and shrinking supply in key European markets.

"We expect 2014 to be a dynamic year for the company," continued Mr. Bless. "Markets are presently exhibiting significant uncertainty due to a variety of well publicized factors. Our industry is highly susceptible to these trends in the short-term. However, our confidence in more attractive future market conditions has only increased, due to a continuation of plant closures in our geographic markets and a favorable demand scenario in which our plants are well positioned to participate. In this context, we will focus on several priorities. In Kentucky, we must find a solution to risks associated with reliable power transmission created by the de-energizing of lines during periods of grid maintenance. At Mt. Holly, we are working with our partner and with the state of South Carolina to create an acceptable post-2015 power arrangement. We remain absolutely and resolutely committed to reopening our smelter at Ravenswood, West Virginia, and are working hard on a number of processes to this end. Likewise, in Iceland, we continue to work with numerous constituencies to seek a way forward for the Helguvik project; we are more convinced than ever that, due to the development of European markets, this plant will be an attractive investment for our shareholders and a favorable development for Iceland's economy."

Fourth Quarter 2013 Earnings Conference Call
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, go to www.centuryaluminum.com and click on the conference call link on the homepage.

About Century Aluminum
Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Chicago, IL. Visit www.centuryaluminum.com for more information.

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.

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 and/or implement long-term competitive power arrangements for our U.S. plants. Forward-looking statements in this press release include, without limitation, statements regarding future global and local financial and economic conditions, including with respect to U.S. and European markets; our ability to successfully execute our key investment projects at our Grundartangi, Iceland smelter; our ability to successfully obtain a long-term competitive power arrangement for Mt. Holly; our ability to restart operations at our Ravenswood, West Virginia smelter; and our ability to complete and successfully execute our Helguvik, Iceland smelter. 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.



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

                               Three months ended          Year ended
                                  December 31,            December 31,
                                2013        2012        2013        2012
                             ----------  ----------  ----------  ----------
NET SALES:
  Third-party customers      $  262,782  $  176,928  $  943,262  $  719,812
  Related parties               138,392     140,739     511,051     552,299
                             ----------  ----------  ----------  ----------
                                401,174     317,667   1,454,313   1,272,111

  Cost of goods sold            385,889     301,124   1,414,790   1,225,769
                             ----------  ----------  ----------  ----------

Gross profit                     15,285      16,543      39,523      46,342

  Other operating expenses        2,314       3,327       8,602      18,253
  Selling, general and
   administrative expenses       21,602      10,571      67,477      35,363
                             ----------  ----------  ----------  ----------

Operating income (loss)          (8,631)      2,645     (36,556)     (7,274)

  Interest expense - third
   party - net                   (5,115)     (5,895)    (22,363)    (23,537)
  Interest income - related
   parties                            -           -           -          62
  Net gain (loss) on forward
   and derivative contracts         447        (101)     16,598      (4,150)
  Gain on bargain purchase            -           -       5,253           -
  Loss on early
   extinguishment of debt             -           -      (3,272)          -
  Other income (expense) -
   net                            1,497      (2,539)        496       5,576
                             ----------  ----------  ----------  ----------


Loss before income taxes and
 equity in earnings of joint
 ventures                       (11,802)     (5,890)    (39,844)    (29,323)

  Income tax benefit
   (expense)                      1,583      (1,526)     (3,131)     (8,910)
                             ----------  ----------  ----------  ----------

Loss before equity in
 earnings of joint ventures     (10,219)     (7,416)    (42,975)    (38,233)

  Equity in earnings of
   joint ventures                   544         507       2,662       2,623
                             ----------  ----------  ----------  ----------

Net loss                     $   (9,675) $   (6,909) $  (40,313) $  (35,610)
                             ==========  ==========  ==========  ==========

Net loss allocated to common
 shareholders                $   (9,675) $   (6,909) $  (40,313) $  (35,610)

LOSS PER COMMON SHARE
  Basic and Diluted          $    (0.11) $    (0.08) $    (0.45) $    (0.40)

WEIGHTED AVERAGE COMMON SHARES
 OUTSTANDING
  Basic and Diluted              88,684      88,492      88,612      88,534



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

                                                 December 31,  December 31,
                     ASSETS                          2013          2012
                                                 ------------  ------------
Cash and cash equivalents                        $     84,088  $    183,976
Restricted cash                                         1,697           258
Accounts receivable - net                              56,184        50,667
Due from affiliates                                    43,587        37,870
Inventories                                           239,615       159,925
Prepaid and other current assets                       32,276        34,975
Deferred taxes - current portion                       13,614        19,726
                                                 ------------  ------------
    Total current assets                              471,061       487,397
Property, plant and equipment - net                 1,247,661     1,188,214
Other assets                                           91,474       100,715
                                                 ------------  ------------
    TOTAL                                        $  1,810,196  $  1,776,326
                                                 ============  ============

      LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Accounts payable, trade                          $    108,490  $     75,370
Due to affiliates                                      53,582        39,737
Accrued and other current liabilities                  69,466        40,099
Accrued employee benefits costs                         8,410        18,683
Industrial revenue bonds                                7,815         7,815
                                                 ------------  ------------
    Total current liabilities                         247,763       181,704
                                                 ------------  ------------

Senior notes payable                                  246,528       250,582
Accrued pension benefits costs - less current
 portion                                               39,848        67,878
Accrued postretirement benefits costs - less
 current portion                                      129,284       143,105
Other liabilities                                      37,743        40,162
Deferred taxes                                        106,218       110,252
                                                 ------------  ------------
    Total noncurrent liabilities                      559,621       611,979
                                                 ------------  ------------

SHAREHOLDERS' EQUITY:
Series A Preferred stock (one cent par value,
 5,000,000 shares authorized; 160,000 issued and
 79,620 outstanding at December 31, 2013 and
 160,000 issued and 80,283 outstanding at
 December 31, 2012)                                         1             1
Common stock (one cent par value, 195,000,000
 shares authorized; 93,496,798 issued and
 88,710,277 outstanding at December 31, 2013;
 93,335,158 issued and 88,548,637 outstanding at
 December 31, 2012)                                       935           933
Additional paid-in capital                          2,508,574     2,507,454
Treasury stock, at cost                               (49,924)      (49,924)
Accumulated other comprehensive loss                  (91,832)     (151,192)
Accumulated deficit                                (1,364,942)   (1,324,629)
                                                 ------------  ------------
    Total shareholders' equity                      1,002,812       982,643
                                                 ------------  ------------
    TOTAL                                        $  1,810,196  $  1,776,326
                                                 ============  ============



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

                                                         Year ended
                                                        December 31,
                                                     2013          2012
                                                 ------------  ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                       $    (40,313) $    (35,610)
  Adjustments to reconcile net loss to net cash
   provided by operating activities:
    Unrealized net loss (gain) on forward
     contracts                                         (1,170)        2,987
    Gain on bargain purchase                           (5,253)            -
    Unrealized gain on E.ON contingent
     obligation                                       (16,781)            -
    Accrued and other plant curtailment costs -
     net                                                4,452         5,251
    Lower of cost or market inventory adjustment        1,247       (19,818)
    Depreciation                                       66,570        62,570
    Sebree power contract amortization                (31,031)            -
    Debt discount amortization                            672         1,069
    Pension and other postretirement benefits           1,740         3,129
    Stock-based compensation                            1,078           613
    Loss on early extinguishment of debt                3,272             -
    Equity in earnings of joint ventures, net of
     dividends                                            871        (2,623)

    Change in operating assets and liabilities:
      Accounts receivable - net                        (6,001)       (2,537)
      Due from affiliates                              (5,717)        2,202
      Inventories                                     (21,920)       31,854
      Prepaid and other current assets                  5,318         4,946
      Accounts payable, trade                          25,224       (12,114)
      Due to affiliates                                13,845        (2,167)
      Accrued and other current liabilities             5,834        (5,746)
      Other - net                                      16,665         3,133
                                                 ------------  ------------
Net cash provided by operating activities              18,602        37,139
                                                 ------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of property, plant and equipment           (45,417)      (17,677)
  Nordural expansion - Helguvik                        (3,331)       (7,317)
  Purchase of carbon anode assets and
   improvements                                       (18,213)      (13,814)
  Purchase of Sebree smelter                          (48,058)            -
  Investments in and advances to joint ventures          (125)         (275)
  Payments received from joint ventures                     -         6,622
  Proceeds from sale of property, plant and
   equipment                                              525           188
  Restricted and other cash deposits                   (1,439)         (258)
                                                 ------------  ------------
Net cash used in investing activities                (116,058)      (32,531)
                                                 ------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Repayment of debt                                  (249,604)            -
  Proceeds from issuance of debt                      246,330             -
  Borrowings under revolving credit facility           22,725        18,076
  Repayments under revolving credit facility          (16,725)      (18,076)
  Debt issuance costs                                  (3,994)            -
  Debt retirement costs                                (1,208)            -
  Repurchase of common stock                                -        (4,033)
  Issuance of common stock                                 44             -
                                                 ------------  ------------
Net cash used in financing activities                  (2,432)       (4,033)
                                                 ------------  ------------

CHANGE IN CASH AND CASH EQUIVALENTS                   (99,888)          575

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

Cash and cash equivalents, end of year           $     84,088  $    183,976
                                                 ============  ============



                          Century Aluminum Company
                           Selected Operating Data
                                 (Unaudited)

                        SHIPMENTS - PRIMARY ALUMINUM

                          Direct (1)                        Toll
                ------------------------------ -----------------------------
                             (000)                         (000)    $ (000)
                  Tonnes    Pounds    $/Pound    Tonnes    Pounds   Revenue
                --------- ---------- --------- --------- --------- ---------
2013
4th Quarter       145,814    321,464 $    0.94    70,941   156,398 $  97,291
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             485,690  1,070,761 $    0.99   278,908   614,887 $ 403,935
                ========= ========== ========= ========= ========= =========

2012
4th Quarter        93,649    206,461 $    1.03    68,654   151,355 $ 105,668
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             377,314    831,835 $    1.03   269,215   593,516 $ 415,779
                ========= ========== ========= ========= ========= =========

(1) Does not include Toll shipments from Nordural Grundartangi

Contacts
Kenny Barkley (media)
270-577-2070

Shelly Harrison (investors)
312-696-3140

Related Stocks:
Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here