$MM (except shipments and per share data) | ||||||||||||||
Q3 2021 | Q4 2021 | |||||||||||||
Shipments (tonnes) | 196,095 | 200,961 | ||||||||||||
Net sales | $ | 581.4 | $ | 659.1 | ||||||||||
Net income (loss) | $ | (52.4) | $ | 60.4 | ||||||||||
Diluted earnings (loss) per share | $ | (0.58) | $ | 0.59 | ||||||||||
Adjusted net income (loss)(1) | $ | (5.7) | $ | 17.2 | ||||||||||
Adjusted earnings (loss) per share(1) | $ | (0.06) | $ | 0.17 | ||||||||||
Adjusted EBITDA(1) | $ | 70.3 | $ | 82.2 | ||||||||||
Notes: | ||||||||||||||
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures. |
$MM (except shipments and per share data) | ||||||||||||||||||||
FY 2020 as Presented | FY 2020 Updated(2) | FY 2021 | ||||||||||||||||||
Shipments (tonnes) | 811,176 | 811,176 | 783,647 | |||||||||||||||||
Net sales | $ | 1,605.1 | $ | 1,605.1 | $ | 2,212.5 | ||||||||||||||
Net income (loss) | $ | (123.3) | $ | (123.3) | $ | (167.1) | ||||||||||||||
Diluted earnings (loss) per share | $ | (1.38) | $ | (1.38) | $ | (1.85) | ||||||||||||||
Adjusted net income (loss)(1) | $ | (112.4) | $ | (102.9) | $ | (62.1) | ||||||||||||||
Adjusted earnings (loss) per share(1) | $ | (1.17) | $ | (1.07) | $ | (0.62) | ||||||||||||||
Adjusted EBITDA(1) | $ | 2.2 | $ | 11.7 | $ | 174.2 | ||||||||||||||
Notes: | ||||||||||||||||||||
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures. | ||||||||||||||||||||
(2) Due to the historic fluctuations in our non-cash share-based compensation costs, we have updated our Adjusted net income (loss) and Adjusted EBITDA definitions to exclude these costs. Accordingly, we have also updated our Adjusted net income (loss) and Adjusted EBITDA for FY 2020. |
CENTURY ALUMINUM COMPANY | |||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three months ended | |||||||||||||||||
December 31 | September 30 | December 31 | |||||||||||||||
2020 | 2021 | 2021 | |||||||||||||||
NET SALES: | |||||||||||||||||
Related parties | $ | 233.1 | $ | 350.6 | $ | 411.7 | |||||||||||
Other customers | 156.0 | 230.8 | 247.4 | ||||||||||||||
Total net sales | 389.1 | 581.4 | 659.1 | ||||||||||||||
Cost of goods sold | 390.3 | 526.8 | 589.7 | ||||||||||||||
Gross profit (loss) | (1.2) | 54.6 | 69.4 | ||||||||||||||
Selling, general and administrative expenses | 11.8 | 14.2 | 18.6 | ||||||||||||||
Other operating (income) expense - net | 0.2 | 0.1 | 0.3 | ||||||||||||||
Operating income (loss) | (13.2) | 40.3 | 50.5 | ||||||||||||||
Interest expense - Hawesville term loan | (0.3) | (0.6) | (0.5) | ||||||||||||||
Interest expense | (8.7) | (6.1) | (6.2) | ||||||||||||||
Interest income | 0.2 | 0.0 | 0.6 | ||||||||||||||
Net gain (loss) on forward and derivative contracts | (15.4) | (76.7) | 26.8 | ||||||||||||||
Other income (expense) - net | 0.5 | (2.5) | 2.5 | ||||||||||||||
Income (loss) before income taxes | (36.9) | (45.6) | 73.7 | ||||||||||||||
Income tax benefit (expense) | 1.5 | (6.8) | (13.2) | ||||||||||||||
Income (loss) before equity in earnings of joint ventures | (35.4) | (52.4) | 60.5 | ||||||||||||||
Equity in earnings (losses) of joint ventures | (0.1) | 0.0 | $ | (0.1) | |||||||||||||
Net income (loss) | $ | (35.5) | $ | (52.4) | $ | 60.4 | |||||||||||
Net income (loss) allocated to common stockholders | $ | (35.5) | $ | (52.4) | $ | 56.5 | |||||||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||||||||
Basic | $ | (0.40) | $ | (0.58) | $ | 0.62 | |||||||||||
Diluted | $ | (0.40) | $ | (0.58) | $ | 0.59 | |||||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||
Basic | 89.7 | 90.1 | 90.5 | ||||||||||||||
Diluted | 89.7 | 90.1 | 96.7 | ||||||||||||||
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended | |||||||||||
December 31 | December 31 | ||||||||||
2020 | 2021 | ||||||||||
NET SALES: | |||||||||||
Related parties | $ | 1,025.5 | $ | 1,337.0 | |||||||
Other customers | 579.6 | 875.5 | |||||||||
Total net sales | 1,605.1 | 2,212.5 | |||||||||
Cost of goods sold | 1,641.6 | 2,088.3 | |||||||||
Gross profit (loss) | (36.5) | 124.2 | |||||||||
Selling, general and administrative expenses | 43.5 | 57.6 | |||||||||
Other operating (income) expense - net | 0.5 | 0.6 | |||||||||
Operating income (loss) | (80.5) | 66.0 | |||||||||
Interest expense - Hawesville term loan | (1.9) | (1.6) | |||||||||
Interest expense | (29.7) | (28.8) | |||||||||
Interest income | 0.8 | 0.8 | |||||||||
Net gain (loss) on forward and derivative contracts | (17.3) | (212.4) | |||||||||
Loss on early extinguishment of debt | (1.2) | (24.7) | |||||||||
Other income (expense) - net | 3.5 | 3.1 | |||||||||
Income (loss) before income taxes | (126.3) | (197.6) | |||||||||
Income tax benefit (expense) | 3.1 | 30.6 | |||||||||
Income (loss) before equity in earnings of joint ventures | (123.2) | (167.0) | |||||||||
Equity in earnings (losses) of joint ventures | (0.1) | $ | (0.1) | ||||||||
Net income (loss) | $ | (123.3) | $ | (167.1) | |||||||
Net income (loss) allocated to common stockholders | $ | (123.3) | $ | (167.1) | |||||||
EARNINGS (LOSS) PER COMMON SHARE: | |||||||||||
Basic | $ | (1.38) | $ | (1.85) | |||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||
Basic | 89.5 | 90.2 | |||||||||
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
December 31, 2020 | December 31, 2021 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 81.6 | $ | 29.0 | |||||||
Restricted cash | 2.7 | 11.7 | |||||||||
Accounts receivable - net | 51.0 | 80.6 | |||||||||
Due from affiliates | 10.3 | 8.3 | |||||||||
Inventories | 291.1 | 425.6 | |||||||||
Derivative assets | 6.4 | 34.8 | |||||||||
Prepaid and other current assets | 12.9 | 28.2 | |||||||||
Total current assets | 456.0 | 618.2 | |||||||||
Property, plant and equipment - net | 880.4 | 892.5 | |||||||||
Other assets | 61.5 | 59.2 | |||||||||
Due from affiliates - less current portion | 1.7 | — | |||||||||
TOTAL | $ | 1,399.6 | $ | 1,569.9 | |||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
LIABILITIES: | |||||||||||
Accounts payable, trade | $ | 106.1 | $ | 186.5 | |||||||
Interest payable | 15.0 | — | |||||||||
Due to affiliates | 21.7 | 65.8 | |||||||||
Accrued and other current liabilities | 54.5 | 62.7 | |||||||||
Derivative liabilities | 4.9 | 102.1 | |||||||||
Accrued employee benefits costs | 10.3 | 8.9 | |||||||||
Hawesville term loan | 20.0 | — | |||||||||
U.S. revolving credit facility | — | 63.6 | |||||||||
Iceland revolving credit facility | — | 50.0 | |||||||||
Industrial revenue bonds | 7.8 | 7.8 | |||||||||
Total current liabilities | 240.3 | 547.4 | |||||||||
Senior notes payable | 243.1 | 245.8 | |||||||||
Convertible senior notes payable | — | 84.0 | |||||||||
Iceland revolving credit facility - less current portion | 45.0 | — | |||||||||
Accrued pension benefits costs - less current portion | 65.2 | 28.6 | |||||||||
Accrued postretirement benefits costs - less current portion | 101.5 | 93.3 | |||||||||
Other liabilities | 44.8 | 46.3 | |||||||||
Leases - right of use liabilities | 24.3 | 22.9 | |||||||||
Due to affiliates - less current portion | 0.1 | 21.9 | |||||||||
Deferred taxes | 89.2 | 58.7 | |||||||||
Total noncurrent liabilities | 613.2 | 601.5 | |||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 63,589 outstanding at December 31, 2020; 160,000 issued and 58,542 outstanding at December 31, 2021) | 0.0 | 0.0 | |||||||||
Common stock (one cent par value, 195,000,000 authorized; 97,242,318 issued and 90,055,797 outstanding at December 31, 2020; 98,418,132 issued and 91,231,611 outstanding at December 31, 2021) | 1.0 | 1.0 | |||||||||
Additional paid-in capital | 2,530.0 | 2,535.5 | |||||||||
Treasury stock, at cost | (86.3) | (86.3) |
Accumulated other comprehensive loss | (118.8) | (82.3) | |||||||||
Accumulated deficit | (1,779.8) | (1,946.9) | |||||||||
Total shareholders’ equity | 546.1 | 421.0 | |||||||||
TOTAL | $ | 1,399.6 | $ | 1,569.9 | |||||||
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Year Ended December 31, | |||||||||||
2020 | 2021 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income (loss) | $ | (123.3) | $ | (167.1) | |||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Unrealized (gain) loss on derivative instruments | 15.7 | 102.9 | |||||||||
Lower of cost or NRV inventory adjustment | 45.0 | — | |||||||||
Depreciation and amortization | 83.0 | 82.6 | |||||||||
Loss on early extinguishment of debt | 1.0 | 24.7 | |||||||||
Change in deferred tax benefit | — | (30.6) | |||||||||
Other non-cash items - net | (0.9) | (1.7) | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable - net | 19.1 | (16.2) | |||||||||
Due from affiliates | 20.8 | 0.7 | |||||||||
Inventories | (15.5) | (134.5) | |||||||||
Prepaid and other current assets | 0.6 | (13.4) | |||||||||
Accounts payable, trade | 20.6 | 44.8 | |||||||||
Due to affiliates | (22.4) | 38.3 | |||||||||
Accrued and other current liabilities | (1.2) | 5.0 | |||||||||
Ravenswood retiree medical settlement | (2.0) | (2.0) | |||||||||
Other - net | 2.4 | 1.8 | |||||||||
Net cash provided by (used in) operating activities | 42.9 | (64.7) | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Purchase of property, plant and equipment | (13.4) | (83.0) | |||||||||
Proceeds from sale of property, plant and equipment | 1.6 | 0.4 | |||||||||
Net cash provided by (used in) investing activities | (11.8) | (82.6) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Repayment of Senior Notes due 2021 | (250.0) | — | |||||||||
Proceeds from issuance of Senior Notes due 2025 | 243.8 | — | |||||||||
Repayment of Senior Notes due 2025 | — | (250.0) | |||||||||
Early redemption and tender premiums paid | — | (18.1) | |||||||||
Proceeds from issuance of Senior Notes due 2028 | — | 250.0 | |||||||||
Proceeds from issuance of Convertible Senior Notes | — | 86.3 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Year Ended December 31, | |||||||||||
2020 | 2021 | ||||||||||
Repayments on Hawesville term loan | (20.0) | (20.0) | |||||||||
Borrowings under revolving credit facilities | 258.9 | 978.8 | |||||||||
Repayments under revolving credit facilities | (217.9) | (910.2) | |||||||||
Debt issuance costs | (1.1) | (7.4) | |||||||||
Debt retirement costs | (0.2) | — | |||||||||
Purchases of capped calls related to Convertible Senior Notes | — | (5.7) | |||||||||
Issuance of common stock | — | — | |||||||||
Net cash provided by (used in) financing activities | 13.5 | 103.7 | |||||||||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 44.6 | (43.6) | |||||||||
Cash, cash equivalents and restricted cash, beginning of year | 39.7 | 84.3 | |||||||||
Cash, cash equivalents and restricted cash, end of year | $ | 84.3 | $ | 40.7 | |||||||
Supplemental Cash Flow Information: | |||||||||||
Cash paid for: | |||||||||||
Interest | $ | 14.5 | $ | 36.8 | |||||||
Taxes | 0.2 | 3.1 | |||||||||
Non-cash investing activities: | |||||||||||
Capital expenditures | 0.9 | 7.1 | |||||||||
Capitalized Interest | — | 1.6 |
SHIPMENTS - PRIMARY ALUMINUM(1) | ||||||||||||||||||||||||||||||||||||||
United States | Iceland | Total | ||||||||||||||||||||||||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | |||||||||||||||||||||||||||||||||
2021 | ||||||||||||||||||||||||||||||||||||||
4th Quarter | 121,549 | $ | 411.8 | 79,412 | $ | 238.9 | 200,961 | $ | 650.7 | |||||||||||||||||||||||||||||
3rd Quarter | 117,951 | $ | 366.6 | 78,144 | $ | 207.6 | 196,095 | $ | 574.2 | |||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||
4th Quarter | 116,839 | $ | 243.1 | 78,101 | $ | 145.5 | 194,940 | $ | 388.6 | |||||||||||||||||||||||||||||
Full year 2021 | 468,729 | $ | 1,368.0 | 314,918 | $ | 790.8 | 783,647 | $ | 2,158.8 | |||||||||||||||||||||||||||||
Full year 2020 | 495,433 | $ | 985.3 | 315,743 | $ | 570.8 | 811,176 | $ | 1,556.1 |
Three months ended | ||||||||||||||||||||||||||
September 30, 2021 | December 31, 2021 | |||||||||||||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||||||||||||
Net income (loss)(1) | $ | (52.4) | $ | (0.58) | $ | 57.2 | $ | 0.59 | ||||||||||||||||||
Unrealized (gain) loss on derivative contracts, net of tax | 35.0 | 0.39 | (53.8) | (0.56) | ||||||||||||||||||||||
Legal settlements, net of tax | 7.7 | 0.09 | — | — | ||||||||||||||||||||||
Share-based compensation | 4.0 | 0.04 | 9.9 | 0.10 | ||||||||||||||||||||||
Impact of preferred and convertible shares | — | — | 3.9 | 0.04 | ||||||||||||||||||||||
Adjusted net income (loss) | $ | (5.7) | $ | (0.06) | $ | 17.2 | $ | 0.17 | ||||||||||||||||||
(1) In periods of positive earnings, this represents earnings allocated to participating dilutive shares. For the three months ended December 31, 2021, this includes earnings allocated to common stockholders plus an add-back of $0.7MM net interest expense related to the convertible notes. |
Three months ended | ||||||||||||||
September 30, 2021 | December 31, 2021 | |||||||||||||
Net income (loss) as reported | $ | (52.4) | $ | 60.4 | ||||||||||
Interest expense | 6.1 | 6.2 | ||||||||||||
Interest expense - Hawesville term loan | 0.6 | 0.5 | ||||||||||||
Interest income | 0.0 | (0.6) | ||||||||||||
Net (gain) loss on forward and derivative contracts | 76.7 | (26.8) | ||||||||||||
Other (income) expense - net | 2.5 | (2.4) | ||||||||||||
Income tax expense (benefit) | 6.8 | 13.2 | ||||||||||||
Equity in JVs | — | 0.1 | ||||||||||||
Operating income (loss) | 40.3 | 50.6 | ||||||||||||
Share-based compensation | 4.0 | 9.9 | ||||||||||||
Legal settlement | 4.0 | — | ||||||||||||
Depreciation and amortization | 22.0 | 21.7 | ||||||||||||
Adjusted EBITDA | $ | 70.3 | $ | 82.2 | ||||||||||
Twelve months ended | ||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2021 | ||||||||||||||||||||||||||||||||||||
as Presented | Updated (1) | |||||||||||||||||||||||||||||||||||||
$MM | EPS | $MM | EPS | $MM | EPS | |||||||||||||||||||||||||||||||||
Net income (loss) as reported | $ | (123.3) | $ | (1.38) | $ | (123.3) | $ | (1.38) | $ | (167.1) | $ | (1.85) | ||||||||||||||||||||||||||
Lower of cost or NV inventory adjustment, net of tax | 0.7 | 0.01 | 0.7 | 0.01 | (3.9) | (0.04) | ||||||||||||||||||||||||||||||||
Unrealized (gain) loss on derivative contracts, net of tax | 16.0 | 0.18 | 16.0 | 0.18 | 106.8 | 1.18 | ||||||||||||||||||||||||||||||||
Sebree equipment failure, net of insurance proceeds | (1.5) | (0.02) | (1.5) | (0.02) | (1.4) | (0.02) | ||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 1.2 | 0.01 | 1.2 | 0.01 | 24.7 | 0.27 | ||||||||||||||||||||||||||||||||
Legal settlements, net of tax | (5.5) | (0.06) | (5.5) | (0.06) | 7.7 | 0.09 | ||||||||||||||||||||||||||||||||
Helguvik tax benefit | — | — | — | — | (49.8) | (0.55) | ||||||||||||||||||||||||||||||||
Share-based compensation | — | — | 9.5 | 0.10 | 20.9 | 0.23 | ||||||||||||||||||||||||||||||||
Impact of preferred and convertible shares | — | 0.09 | — | 0.09 | — | 0.07 | ||||||||||||||||||||||||||||||||
Adjusted net income (loss) | $ | (112.4) | $ | (1.17) | $ | (102.9) | $ | (1.07) | $ | (62.1) | $ | (0.62) | ||||||||||||||||||||||||||
Notes: | ||||||||||||||||||||||||||||||||||||||
(1) Due to the historic fluctuations in our non-cash share-based compensation costs, we have updated our Adjusted net income (loss) and Adjusted EBITDA definitions to exclude these costs. Accordingly, we have also updated our Adjusted net income (loss) and Adjusted EBITDA for the twelve months ended December 31, 2020. |
Twelve months ended | ||||||||||||||||||||
December 31, 2020 | December 31, 2020 | December 31, 2021 | ||||||||||||||||||
as Presented | Updated(1) | |||||||||||||||||||
Net Income (loss) as reported | $ | (123.3) | $ | (123.3) | $ | (167.1) | ||||||||||||||
Interest expense | 29.7 | 29.7 | 28.8 | |||||||||||||||||
Interest expense - Hawesville term loan | 1.9 | 1.9 | 1.6 | |||||||||||||||||
Interest income | (0.8) | (0.8) | (0.8) | |||||||||||||||||
Net (gain) loss on forward and derivative contracts | 17.3 | 17.3 | 212.4 | |||||||||||||||||
Loss on early extinguishment of debt | 1.2 | 1.2 | 24.7 | |||||||||||||||||
Other (income) expense - net | (3.5) | (3.5) | (3.0) | |||||||||||||||||
Income tax expense (benefit) | (3.1) | (3.1) | (30.6) | |||||||||||||||||
Equity in earnings of joint ventures | 0.1 | 0.1 | 0.1 | |||||||||||||||||
Operating income (loss) | (80.5) | (80.5) | 66.1 | |||||||||||||||||
Lower of cost or NRV inventory adjustment | 0.8 | 0.8 | (3.9) | |||||||||||||||||
Sebree equipment failure, net of insurance proceeds | (1.5) | (1.5) | (1.4) | |||||||||||||||||
Legal settlement | (5.5) | (5.5) | 4.0 | |||||||||||||||||
Depreciation and amortization | 88.9 | 88.9 | 88.5 | |||||||||||||||||
Share-based compensation | — | 9.5 | 20.9 | |||||||||||||||||
Adjusted EBITDA | $ | 2.2 | $ | 11.7 | $ | 174.2 | ||||||||||||||
Notes: | ||||||||||||||||||||
(1) Due to the historic fluctuations in our non-cash share-based compensation costs, we have updated our Adjusted net income (loss) and Adjusted EBITDA definitions to exclude these costs. Accordingly, we have also updated our Adjusted net income (loss) and Adjusted EBITDA for the twelve months ended December 31, 2020. |