Business Highlights
- Net sales of
$489.5 million - Realized LME aluminum price of
$2,190 /T in first quarter is up$8 /T from prior quarter - Reported net income attributable to Century stockholders of
$246.8 million and adjusted EBITDA attributable to Century stockholders of$25.0 million 1 - Cash and cash equivalents of
$93.5 million and strong liquidity of$302.0 million as ofMarch 31, 2024 - Selected by
U.S. Department of Energy to receive$500.0 million investment to build a new green aluminum smelter - Announced joint venture with
MX Holdings to explore new low carbon secondary billet casthouse
First Quarter 2024 Financial Results
$MM (except shipments and per share data) | |||||||
Q1 2024 | Q4 2023 | ||||||
Aluminum shipments (tonnes) | 174,627 | 173,871 | |||||
Net sales | $ | 489.5 | $ | 512.3 | |||
Net income attributable to Century stockholders | $ | 246.8 | $ | 30.0 | |||
Diluted earnings per share attributable to Century stockholders | $ | 2.26 | $ | 0.30 | |||
Adjusted net (loss) income attributable to Century stockholders(1) | $ | (3.0 | ) | $ | 40.0 | ||
Adjusted (loss) earnings per share attributable to Century stockholders(1) | $ | (0.03 | ) | $ | 0.39 | ||
Adjusted EBITDA attributable to Century stockholders(1) | $ | 25.0 | $ | 57.1 |
Notes:
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures.
Net sales for the first quarter ended
Century reported net income attributable to Century stockholders of
Adjusted EBITDA attributable to Century stockholders for the first quarter of 2024 was
Century's liquidity position at
“Operational and safety performance was excellent across Century’s smelter portfolio in the first quarter, reflecting our team’s disciplined focus on execution,” said Century President and CEO
“With trade disruptions continuing to proliferate globally on rising geopolitical tensions and near shoring trends, Century’s strategic locations in the US and European markets enables us to provide our customers with reliable supply chains and top-notch customer service,” continued
Second Quarter 2024 Outlook
The company expects second quarter Adjusted EBITDA to range between
About
With its corporate headquarters located in
Non-GAAP Financial Measures
Adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA are non-GAAP financial measures that management uses to evaluate Century's financial performance. These non-GAAP financial measures facilitate comparisons of this period’s results with prior periods on a consistent basis by excluding items that management does not believe are indicative of Century’s ongoing operating performance and ability to generate cash. Management believes these non-GAAP financial measures enhance an overall understanding of Century’s performance and our investors’ ability to review Century’s business from the same perspective as management. The tables below, under the heading "Reconciliation of Non-GAAP Financial Measures," provide a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, Century's reported results prepared in accordance with GAAP. In addition, because not all companies use identical calculations, adjusted net income (loss), adjusted earnings (loss) per share and adjusted EBITDA included in this press release may not be comparable to similarly titled measures of other companies. Investors are encouraged to review the reconciliations in conjunction with the presentation of these non-GAAP financial measures.
Cautionary Statement
This press release and statements made by
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and in other filings made with the
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||
(in millions, except per share amounts) | ||||||||||||
(Unaudited) | ||||||||||||
Three months ended | ||||||||||||
2024 | 2023 | 2023 | ||||||||||
Related parties | $ | 315.0 | $ | 371.8 | $ | 412.2 | ||||||
Other customers | 174.5 | 140.5 | 140.2 | |||||||||
Total net sales | 489.5 | 512.3 | 552.4 | |||||||||
Cost of goods sold | 473.0 | 472.9 | 504.3 | |||||||||
Gross profit | 16.5 | 39.4 | 48.1 | |||||||||
Selling, general and administrative expenses | 14.1 | 8.1 | 13.4 | |||||||||
Other operating expense - net | 0.5 | 2.1 | 7.2 | |||||||||
Operating income | 1.9 | 29.2 | 27.5 | |||||||||
Interest expense - affiliates | (1.8 | ) | (1.5 | ) | — | |||||||
Interest expense | (7.4 | ) | (7.4 | ) | (8.7 | ) | ||||||
Interest income | 0.7 | 0.9 | 0.3 | |||||||||
Net gain (loss) on forward and derivative contracts | 7.4 | 11.9 | (57.6 | ) | ||||||||
Bargain purchase gain | 245.9 | — | — | |||||||||
Other loss - net | (1.5 | ) | (0.8 | ) | (0.3 | ) | ||||||
Income (loss) before income taxes | 245.2 | 32.3 | (38.8 | ) | ||||||||
Income tax (expense) benefit | (0.5 | ) | (6.6 | ) | 0.2 | |||||||
Income (loss) before equity in earnings of joint ventures | 244.7 | 25.7 | (38.6 | ) | ||||||||
Equity in losses of joint ventures | — | (0.1 | ) | — | ||||||||
Net income (loss) | 244.7 | 25.6 | (38.6 | ) | ||||||||
Net loss attributable to noncontrolling interests | (2.1 | ) | (4.4 | ) | — | |||||||
Net income (loss) attributable to Century stockholders | 246.8 | 30.0 | (38.6 | ) | ||||||||
Less: net income allocated to participating securities | 13.2 | 1.6 | — | |||||||||
Net income (loss) allocated to common stockholders | $ | 233.6 | $ | 28.4 | $ | (38.6 | ) | |||||
INCOME (LOSS) ATTRIBUTABLE TO CENTURY STOCKHOLDERS PER COMMON SHARE: | ||||||||||||
Basic | $ | 2.52 | $ | 0.31 | $ | (0.42 | ) | |||||
Diluted | 2.26 | 0.30 | (0.42 | ) | ||||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||
Basic | 92.7 | 92.5 | 92.3 | |||||||||
Diluted | 98.7 | 103.3 | 92.3 |
CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 93.5 | $ | 88.8 | |||
Restricted cash | 1.5 | 1.5 | |||||
Accounts receivable - net | 47.8 | 53.7 | |||||
Non-trade receivables | 38.5 | 36.2 | |||||
Due from affiliates | 22.8 | 20.2 | |||||
Manufacturing credit receivable | 57.9 | 59.3 | |||||
Inventories | 484.2 | 477.0 | |||||
Derivative assets | 5.3 | 2.9 | |||||
Prepaid and other current assets | 29.6 | 27.5 | |||||
Total current assets | 781.1 | 767.1 | |||||
Property, plant and equipment - net | 984.2 | 1,004.2 | |||||
Other assets | 84.6 | 75.2 | |||||
TOTAL | $ | 1,849.9 | $ | 1,846.5 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 180.5 | $ | 249.5 | |||
Accrued compensation and benefits | 34.0 | 38.1 | |||||
Due to affiliates | 131.8 | 101.4 | |||||
Accrued and other current liabilities | 46.3 | 50.9 | |||||
Derivative liabilities | 0.4 | 1.4 | |||||
Deferred credit - preliminary bargain purchase gain | — | 273.4 | |||||
Current debt due to affiliates | 10.0 | 10.0 | |||||
Current maturities of long-term debt | 65.9 | 38.3 | |||||
Total current liabilities | 468.9 | 763.0 | |||||
Long-term debt | 452.1 | 430.9 | |||||
Accrued benefits costs - less current portion | 121.3 | 120.3 | |||||
Other liabilities | 97.1 | 66.3 | |||||
Deferred taxes | 73.0 | 72.4 | |||||
Asset retirement obligations - less current portion | 50.4 | 49.5 | |||||
Total noncurrent liabilities | 793.9 | 739.4 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock ( | — | — | |||||
Common stock ( | 1.0 | 1.0 | |||||
Additional paid-in capital | 2,543.7 | 2,542.9 | |||||
(86.3 | ) | (86.3 | ) | ||||
Accumulated other comprehensive loss | (99.6 | ) | (97.9 | ) | |||
Accumulated deficit | (1,757.3 | ) | (2,004.1 | ) | |||
Total Century shareholders’ equity | 601.5 | 355.6 | |||||
Noncontrolling interests | (14.4 | ) | (11.5 | ) | |||
Total equity | 587.1 | 344.1 | |||||
TOTAL | $ | 1,849.9 | $ | 1,846.5 |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions) | |||||||
(Unaudited) | |||||||
Three months ended | |||||||
2024 | 2023 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income (loss) | $ | 244.7 | $ | (38.6 | ) | ||
Adjustments to reconcile net income (loss) to net cash used in operating activities: | |||||||
Unrealized (gain) loss on derivative instruments | (6.4 | ) | 64.4 | ||||
Lower of cost or NRV inventory adjustment | — | 5.1 | |||||
Depreciation, depletion and amortization | 19.9 | 15.9 | |||||
Change in deferred tax benefit (expense) | 0.4 | (1.5 | ) | ||||
Bargain purchase gain | (245.9 | ) | — | ||||
Other non-cash items - net | (1.5 | ) | (0.5 | ) | |||
Change in operating assets and liabilities, net of acquisition: | |||||||
Accounts receivable - net | (1.4 | ) | 19.1 | ||||
Non-trade receivables | 5.2 | — | |||||
Manufacturing credit receivable | (12.6 | ) | — | ||||
Due from affiliates | (2.6 | ) | (11.7 | ) | |||
Inventories | (7.2 | ) | (41.1 | ) | |||
Prepaid and other current assets | 0.2 | 1.8 | |||||
Accounts payable, trade | (33.8 | ) | (17.4 | ) | |||
Due to affiliates | 33.6 | 10.4 | |||||
Accrued and other current liabilities | (8.4 | ) | (8.7 | ) | |||
Other - net | 1.0 | 2.6 | |||||
Net cash used in operating activities | (14.8 | ) | (0.2 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (29.7 | ) | (14.3 | ) | |||
Net cash used in investing activities | (29.7 | ) | (14.3 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 155.9 | 192.4 | |||||
Repayments under revolving credit facilities | (130.5 | ) | (209.4 | ) | |||
Repayments under | (1.2 | ) | (2.4 | ) | |||
Borrowings under Grundartangi casthouse debt facility | 25.0 | 10.0 | |||||
Net cash provided by (used in) financing activities | 49.2 | (9.4 | ) | ||||
CHANGE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 4.7 | (23.9 | ) | ||||
Cash, cash equivalents and restricted cash, beginning of period | 90.3 | 55.5 | |||||
Cash, cash equivalents and restricted cash, end of period | $ | 95.0 | $ | 31.6 |
SELECTED OPERATING DATA
(in millions, except shipments)
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM(1) | |||||||||||||||
Total | |||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | ||||||||||
2024 | |||||||||||||||
1st Quarter | 97,602 | $ | 258.1 | 77,025 | $ | 189.5 | 174,627 | $ | 447.6 | ||||||
2023 | |||||||||||||||
4th Quarter | 96,002 | $ | 259.2 | 77,869 | $ | 196.7 | 173,871 | $ | 455.9 | ||||||
1st Quarter | 102,430 | 317.6 | 78,735 | 210.1 | 181,165 | 527.7 |
(1) Excludes scrap aluminum sales, purchased aluminum and alumina sales.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in millions, except per share amounts)
(Unaudited)
Three months ended | ||||||||||||||||
$MM | EPS | $MM | EPS1 | |||||||||||||
Net income attributable to Century stockholders | $ | 246.8 | $ | 2.66 | $ | 30.0 | $ | 0.32 | ||||||||
Less: net income allocated to participating securities | 13.2 | 0.14 | 1.6 | 0.01 | ||||||||||||
Net income allocated to common stockholders | 233.6 | 2.52 | 28.4 | 0.31 | ||||||||||||
Lower of cost or NRV inventory adjustment, net of tax | (6.4 | ) | (0.07 | ) | (3.0 | ) | (0.03 | ) | ||||||||
Unrealized (gain) loss on derivative contracts, net of tax | (3.3 | ) | (0.04 | ) | 2.9 | 0.03 | ||||||||||
Bargain purchase gain | (245.9 | ) | (2.65 | ) | — | — | ||||||||||
Share-based compensation | 3.5 | 0.04 | 1.3 | 0.01 | ||||||||||||
Jamalco acquisition costs | — | — | 0.6 | 0.01 | ||||||||||||
Jamalco equipment failure | 4.7 | 0.05 | 7.4 | 0.07 | ||||||||||||
Impact of preferred and convertible shares | 10.8 | 0.12 | 2.4 | 0.03 | ||||||||||||
Adjusted net (loss) income attributable to Century stockholders | $ | (3.0 | ) | $ | (0.03 | ) | $ | 40.0 | $ | 0.43 | ||||||
Notes: | ||||||||||||||||
(1) For periods ended prior to |
Three months ended | ||||||||
Net income attributable to Century stockholders | $ | 246.8 | $ | 30.0 | ||||
Add: Net loss attributable to noncontrolling interests | (2.1 | ) | (4.4 | ) | ||||
Net income | 244.7 | 25.6 | ||||||
Interest expense - affiliates | 1.8 | 1.5 | ||||||
Interest expense | 7.4 | 7.4 | ||||||
Interest income | (0.7 | ) | (0.9 | ) | ||||
Net gain on forward and derivative contracts | (7.4 | ) | (11.9 | ) | ||||
Bargain purchase gain | (245.9 | ) | — | |||||
Other expense - net | 1.5 | 0.8 | ||||||
Income tax expense | 0.5 | 6.6 | ||||||
Equity in losses of joint ventures | — | 0.1 | ||||||
Operating income | 1.9 | 29.2 | ||||||
Lower of cost or NRV inventory adjustment | (7.0 | ) | (6.5 | ) | ||||
Share-based compensation | 3.5 | 2.0 | ||||||
Jamalco acquisition costs | — | 0.6 | ||||||
Jamalco equipment failure | 8.5 | 13.5 | ||||||
Depreciation, depletion and amortization | 21.9 | 21.1 | ||||||
Adjusted EBITDA | 28.8 | 59.9 | ||||||
Less: Adjusted EBITDA attributable to noncontrolling interests | 3.8 | 2.8 | ||||||
Adjusted EBITDA attributable to Century stockholders | $ | 25.0 | $ | 57.1 |
Contact
(Investors and media)
312-696-3132
Source: Century Aluminum Company
Source:
2024 GlobeNewswire, Inc., source