Aleris Investor Presentation June 2014 Exhibit 99.1 |
Forward-Looking and Other Information 1 IMPORTANT INFORMATION FORWARD-LOOKING INFORMATION NON-GAAP INFORMATION INDUSTRY INFORMATION Certain statements in this presentation are “forward-looking statements” within the meaning of the federal securities laws. Statements about our beliefs and expectations and statements containing the words “may,” “could,” “would,” “should,” “will,” “believe,” “expect,” “anticipate,” “plan,” “estimate,” “target,” “project,” “look forward to,” “intend” and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, demand for our products and services, anticipated cost savings, anticipated benefits from new products or facilities, and projected results of operations. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Some of the important factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-use segments, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers’ industries; (3) our ability to fulfill our substantial capital investment requirements; (4) variability in general economic conditions on a global or regional basis; (5) our ability to retain the services of certain members of our management; (6) our ability to enter into effective metal, natural gas and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (7) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (8) increases in the cost of raw materials and energy; (9) the loss of order volumes from any of our largest customers; (10) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (11) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations; (12) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry segments we serve; (13) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (14) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (15) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (16) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing, or the failure of financial institutions to fulfill their commitments to us under committed credit facilities; (17) our ability to access the credit and capital markets; (18) the possibility that we may incur additional indebtedness in the future; and (19) limitations on operating our business as a result of covenant restrictions under our indebtedness. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward- looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law. The non-GAAP financial measures contained in this presentation (including, without limitation, EBITDA, Adjusted EBITDA, commercial margin, and variations thereof) are not measures of financial performance calculated in accordance with U.S. GAAP and should not be considered as alternatives to net income and loss attributable to Aleris Corporation or any other performance measure derived in accordance with GAAP or as alternatives to cash flows from operating activities as a measure of our liquidity. Non-GAAP measures have limitations as analytical tools and should be considered in addition to, not in isolation or as a substitute for, or as superior to, our measures of financial performance prepared in accordance with GAAP. Management believes that certain non-GAAP performance measures may provide investors with additional meaningful comparisons between current results and results in prior periods. Management uses non-GAAP financial measures as performance metrics and believes these measures provide additional information commonly used by the holders of our senior debt securities and parties to the ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. These adjustments are based on currently available information and certain adjustments that we believe are reasonable and are presented as an aid in understanding our operating results. They are not necessarily indicative of future results of operations that may be obtained by the Company. Information regarding market and industry statistics contained in this presentation is based on information from third party sources as well as estimates prepared by us using certain assumptions and our knowledge of these industries. Our estimates, in particular as they relate to our general expectations concerning the aluminum industry, involve risks and uncertainties and are subject to changes based on various factors, including those discussed under “Risk Factors” in our filings with the Securities and Exchange Commission. This information is current only as of its date and may have changed. We undertake no obligation to update this information in light of new information, future events or otherwise. This information contains certain financial projections and forecasts and other forward looking information concerning our business, prospects, financial condition and results of operations, and we are not making any representation or warranty that this information is accurate or complete. See “Forward-Looking Information” below. |
Contents Aleris Overview Key Highlights Financial Overview 2 |
3 3 Aleris Overview 3 |
4 Aleris’ Position in the Aluminum Value Chain Limited exposure to upstream aluminum volatility and costs Aleris participates in select segments of the aluminum fabricated products industry 4 Bauxite mining Alumina refining Aluminum smelting End use applications Recycling Processing |
Successful History of Acquisitions Strategic growth has led to diversity in capabilities and industries served ALSCO Ormet Alumitech EKCO Wabash Alloys Corus AE Inc. HT Aluminum Voerde Nichols 5 2012 2013 2010 2011 2004 2009 2008 2007 2006 2005 2003 2014 2015 2016 Commonwealth Aluminum IMCO Recycling Inc. |
Leading Global Downstream Aluminum Company Rolled & Extruded Products Recycling & Specification Alloys Business Segments: RPNA, RPEU, RPAP, Extrusions Global Market Segments: - Aerospace - Automotive - Heat Exchanger - Commercial Plate & Defense Regional Industries - Engineering - Building & Construction - Distribution #1 in North America building and construction Leading player in auto body sheet in Europe Leading player in aerospace sheet and plate globally Business Segments: RSAA, RSEU Recycling - Packaging (can sheet) - Transportation - General Industrial - Deox (steel production) Specification Alloys: - Auto - General Industrial Global leader in merchant aluminum recycling and supply of specification alloys in U.S. / Europe LTM March ‘14 Adj. EBITDA: $199m 1 LTM March ‘14 Adj. EBITDA: $68m 1 1 Excludes $36M of corporate overhead 2 Year ended revenue 12/31/2013; includes intercompany revenue Revenue: $3.0 billion 2 Revenue: $1.5 billion 2 RPEU RPNA Extrusions RSEU RSAA RPAP 12% 48% 40% 37% 63% 6 |
Global Platform North America Europe Key Facilities China Koblenz Duffel Specialized facilities, high value products Zhenjiang Bonn Lewisport Uhrichsville Richmond Morgantown Grevenbroich Ability to deliver molten aluminum Stuttgart Wabash Davenport Modern and highly efficient facilities in key countries 7 Low cost production, maximum use of scrap |
Light-weight: approximately 1/3 the weight of steel Exceptional strength-to-weight ratio Corrosion resistant High electrical and heat conductivity Highly recyclable Consumption rises with economic development Leveraging Aluminum’s Value & Sustainability Uniquely positioned to grow through sustainability Global Drive to Sustainability Significant customer demand for sustainable solutions Strong shift from Primary Aluminum to Recycled Scrap 95% more energy efficient vs. primary aluminum Leader in Scrap Processing Leader in merchant supply and recycling for internal consumption Approximately 2 million tons of scrap processed in 2013 Customer “closed loop” relationships Key Attributes of Aluminum 8 |
2013 Revenue 1 Serving customers in diverse industries worldwide 1. 2013 information does not include Nichols business as the transaction closed in the second quarter of 2014. 2. Rolled Products Asia Pacific segment revenue was excluded from this chart as the segment’s revenue was less than 1% of consolidated revenue for the year ended December 31, 2013. Other 11% Aerospace 10% Automotive 32% Heat Exchanger 6% Europe Building & Construction 4% N. America Building & Construction 10% Engineering 1% Packaging 4% Transportation 7% Distribution 15% Revenue by Reportable Segment 2 Revenue by End Use RPNA 28% RPEU 30% Extrusion 8% RSAA 22% RSEU 12% 9 |
Foundation for Growth in Place* More than $600M committed to support growth CHINA $350M DUFFEL $70M ASHVILLE $20M TIANJIN $10M RECYCLING $20M R&D INSOURCING $30M NICHOLS ACQUISITION $110M 10 2013 2014 2011 2012 2009 2010 2015 Relocated 28Mn press from Duffel Numerous capacity expansion and productivity projects Collaboration with customers Proprietary alloys Wide Coating Line Benefit from Nichols acquisition 250kT Hot Mill 35kT Phase 1 Plate Mill Nadcap certification June 2014 Wide Auto Body Sheet Cold Mill Capturing transformational growth opportunity 1 Hot Mill, 3 Finishing Plants Complementary Rolling Mill asset base; expected significant synergies *Represents capital expenditure estimates from 2010 – 2014. |
11 11 Key Highlights |
Key Highlights Strong, experienced management team Flexible capital structure; adequate liquidity and limited amortization requirements Significant growth investments underpin future performance Well-positioned to benefit from economic recovery and growth in aluminum consumption 12 |
13 13 Poised to benefit from recoveries U.S. Housing and Europe Recovery Gaining Momentum 5.0 4.0 3.0 2.0 1.0 0.0 (1.0) (2.0) (3.0) (4.0) 2005 2000 2010 Housing starts (M) US GDP Growth % Germany Italy France UK Spain 2013 2014F US Housing Starts & GDP Growth EU Real GDP Growth by Country 1.7 -1.2 -1.8 0.4 0.5 3.1 1.3 0.3 0.7 2.0 Source: Barclays Economic Research – May 2014 Source: US census for actuals, GDP actuals - US census, Barclays Economic Research – May 2014 2014 Forecast 1.9% 0.5 0.6 0.7 0.8 0.9 1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.0 2.1 |
14 14 Healthy Global FRP Growth Transportation sector leading growth; Aleris well-positioned Transport B&C Industrial CAGR ‘13-’18 (%) China North America 1 Western Europe 10.7% 2018 2013 1,855 3,085 5.6 15.3 3.4 5.0% 2018 2013 2,217 1,741 2.1 8.3 1.5 8.9% 2013 2,217 2018 3,392 8.1 10.3 8.9 (kT) Source: CRU Aluminum Outlook Quarterly Report Feb 2014, Aleris Analysis |
15 15 192 812 254 Aircraft Backlogs Remain at Record Levels +16% 11 7,966 10 6,676 09 6,484 08 6,942 07 6,443 06 4,803 05 3,899 04 2,545 YTD 14 10,532 12 8,948 Boeing Airbus A380 A350 A330 A320 4256 46 884 388 B747 B787 B777/767 B737 3778 Order backlog expected to support production for 6 to 8 years 13 10,610 Airbus backlog break out per AC Boeing backlog break out per AC Order Backlog (# planes) Source: Airbus & Boeing reports Note: Backlog defined as Net Orders (Gross Orders – Conversions/Cancellations) minus Deliveries |
16 16 Aluminum Auto Body Sheet – Transformative Opportunity Source: IHS & Aleris internal projections Structural shift underway 12 13 14 15 16 17 18 19 20 21 China North America Europe Projected Global ABS Demand, including non-CALP Qualities (2012-2021) |
17 17 Key Growth Initiatives Execution on track; beginning to realize benefits Aerospace growth and shift in demand to Asia Significant latent optionality given under utilized Hot Mill Built to exacting standards for our Koblenz, Germany Mill Capturing transformative shift in automotive Global customer base Widest ABS Rolling Mill in Europe Well-timed to benefit from housing recovery Comparable asset base; similar technologies Significant synergy opportunity NICHOLS ACQUISITION $110M CHINA $350M DUFFEL $70M |
18 18 Aleris Zhenjiang – Summary Overview World class rolling mill initially targeting value added heat-treat plate applications, including aerospace State-of-the-art machinery Plant engineered to exacting German standards used in Aleris’ Koblenz, Germany mill Employee training conducted in Koblenz Unmatched “know how” and capability in China Leverages Aleris reputation in aerospace Significant growth options with 250kT Hot Mill capacity and 35kT annual Phase 1 plate capacity Plate expansion Coil and auto body sheet Aerospace qualification agreements in place; aerospace shipments expected 2H14 AS9100 certification achieved in 4Q13 Nadcap certification achieved 2Q14 Laser-focus on Aerospace qualification process 2324 1649 1852 1142 132 0 500 1000 1500 2000 2500 1Q14 4Q13 3Q13 2Q13 1Q13 Overview Plant Shipments by Qtr (T) |
19 19 Aerospace Qualification (Nadcap) Process Complete First aerospace shipments imminent Agreements with all 4 major OEMs (Boeing, COMAC, Bombardier, Airbus) in place Approval of heat treatment facilities Accreditation of lab by OEMs underway Produced AC plate qualification material ISO 9001 certification AS 9100 certification (Aerospace certification) Implemented ultrasonic test device Achieved Nadcap certification in 2Q14 Develop/confirm process control documents Pass final OEM audits end 3Q14 Achievements Next steps / Main priorities Required to sell to OEMs |
20 20 Duffel Automotive – Solid Foundation for Growth Wide Automotive Body Sheet (WABS) 1Q14 Automotive volumes increased 43% vs 1Q13 New cold rolling mill Furnaces Automation $70M investment completed |
21 21 Nichols Acquisition Update Company Overview Key North American aluminum sheet supplier to building & construction and transportation industries Four facilities – Davenport, IA (2) – Lincolnshire, IL – Decatur, AL Approximately 550 employees 2013 shipments of ~300 million lbs 1 2013 fiscal results from Quanex SEC filings. 1 |
22 22 Continuous Cast Profitability Comparison Synergistic Nichols acquisition expected to generate attractive returns |
23 23 Experienced Management Team Name Title Yrs. w/ Company Previous Experience Industrial Experience Roeland Baan Eric Rychel Sean Stack Chairman and CEO EVP and CEO – Europe & Asia Pacific SVP and CFO EVP and CEO – Rolled Products North America 11 6 2 10 CEO of Noveon CEO of Mittal Steel Europe VP and Treasurer of Noveon 31 31 2 23 Steven Demetriou Chris Clegg Tom Weidenkopf EVP, General Counsel and Secretary EVP of HR and Communications SVP, General Counsel and Secretary of Noveon SVP, HR for Honeywell International 10 5 29 31 1 Includes years with Aleris and/or Commonwealth John Zhu Ingrid Joerg SVP, President of China 3 28 China President for Wartsila SVP and GM of RPEU 2 17 President, Alcoa FRP Europe & Brazil Managing Director, Barclays & Deutsche Bank Aleris formed in 2004 through combination of IMCO Recycling and Commonwealth Industries Proven acquirer; successfully integrated 13 acquisitions since 2004 including Corus Aluminum 1 Successfully restructured during downturn – lowered costs and repositioned business (2008 – 2009) |
24 24 Financial Overview |
25 25 Key Performance Metrics – Total Aleris Volume (kT 1 ) EBITDA ($M) 1 Excludes Brazil &Voerde Business and Earnings Drivers Key Areas of Impact on Drivers 1963 1936 1925 2006 0 500 1,000 1,500 2,000 2,500 1Q14 LTM 2013 2011 2012 236 231 294 332 0 50 100 150 200 250 300 350 0 50 100 150 200 2011 1Q14 LTM 2013 2012 EBITDA EBITDA $/ton Economic recovery, growth initiatives, share gains Quality and service, supply and demand Growth in value-added Aero, ABS and recovery in B&C LME, scrap availability and processing capabilities Productivity focus, volume leverage from recovery & initiatives Volume Rolling margin / conversion price Mix Scrap and metal spreads Cash conversion costs |
26 26 Capital Expenditures Capital Expenditures Summary Capital expenditures returning to normalized levels 92 112 103 100 36 113 278 135 65 12 $48 1Q14 2014E $165 2012 $390 2011 $205 2013 $238 Maintenance Growth |
27 27 Capital Structure and Amortization Schedule $700 600 100 0 400 500 200 300 Thereafter 685 2018 529 2017 19 2016 611 2015 2 2014 8 China Recourse Revolver Funded Revolver Capital Structure Highlights • No near term amortization requirements • No maintenance or performance covenants unless liquidity drops substantially • Unsecured, except for working capital assets 1Q14 Debt Maturity Profile 1 Summary Capitalization Table Actual Pro Forma for Nichols¹ Net Debt - Net Debt - Mult of 1Q14 Mult of 1Q14 3/31/2014 LTM EBTIDA 3/31/2014 LTM EBTIDA Cash $51.3 $51.3 Revolver 10.0 120.0 Total Secured Debt 10.0 120.0 Senior Notes due 2018 500.0 500.0 Senior Notes due 2020 500.0 500.0 Exchangeable Notes 44.8 44.8 Other Debt 16.0 4.4 x 16.0 4.8 x Total Recourse Debt 1,070.8 1,180.8 China Debt 191.8 5.2 x 191.8 5.6 x Total Debt 1,262.6 1,372.6 Total Shareholders' Equity 361.3 361.3 Total Capitalization $1,623.9 $1,733.9 1 Includes $110M for Nichols acquisition and estimated $6M for Nichols LTM EBITDA added to Total Aleris EBITDA. Near term amortization requirements limited |
28 28 First Quarter Performance Overview Sequential Adjusted EBITDA improvement affirms recovering fundamentals 1Q14 Adjusted EBITDA of $59 million Significantly higher automotive volumes Global aerospace volumes impacted by customer destocking North American rolled products volumes down due to MWP volatility Weather affected volume, scrap availability and natural gas costs in NA Improvement in Specification Alloy metal spreads |
29 29 1Q14 Volume Recap & Highlights Volume Change vs. 1Q13 Volume Drivers 1 Excludes 2013 shipments of semi-finished product to Zhenjiang, China and from Voerde cast house; including these shipments volume was (4%). 2 Excludes impact of idling production at Saginaw, Michigan facility; including this impact volume was (5%). RPNA (9%) Distribution (11%) - High and volatile Midwest Premium, weather Transportation 3% - Steady trailer builds B&C (18%) - Harsh winter weather; MWP volatility RPEU / Global Market Segments 1 5% Aerospace (7%) - Customer inventory overhang Automotive 43% - Premium auto builds; Aluminum penetration Heat Exchanger 11% - Share gain; rebound from cycle lows Plate & Sheet (3%) - Overcapacity in plate market Extrusions 10% - Improved Automotive demand; EU rebound RSAA 2 1% Spec / Automotive 2 5% - NA Auto builds Recycling (4%) - Winter weather; scrap availability RSEU 1% Spec / Automotive 17% - Improved Automotive demand Recycling (29%) - Scrap availability; furnace redeployment |
30 30 Scrap Environment Update NA Spec Alloy Metal Spreads RPNA Scrap Spreads Current scrap flows recovering from winter disruptions More dramatic winter impact in 1Q14 Decreased scrap exports Scrap processing equip increasing flexibility Low LME limiting scrap spreads Increased competition for scrap Regional premium very volatile Mar 12 Mar 13 Mar 14 Spread Indexed to 9 Yr Avg 9 Yr Avg Spread Winter impact Winter impact $0.70 $0.90 $1.10 $0.80 $1.00 $0.15 $0.25 $0.20 $0.30 $0.10 Mar 14 Mar 13 Mar 12 MLC Diff. to P1020 P1020 (right axis) Ptd. Siding Diff. to P1020 0.6 0.7 0.8 0.9 1.0 1.1 1.2 |
31 31 Adjusted EBITDA Bridge ($M) 2 1Q14 vs. 1Q13 |
Key Highlights Strong, experienced management team Flexible capital structure; adequate liquidity and limited amortization requirements Significant growth investments underpin future performance Well-positioned to benefit from economic recovery and growth in aluminum consumption 32 |
33 33 Appendix |
34 34 RPNA Volume (kT) Adjusted EBITDA 1Q14 Performance 1Q Adjusted EBITDA Bridge ($M) 2011 1Q14 1Q13 LTM 2013 2012 23 2 2 3 3 4 23 1Q14 1Q13 LTM 2013 2012 2011 Adj. EBITDA / ton 283 281 205 209 246 269 Adjusted EBITDA ($M) EBITDA as % of Commercial Margin Lower volumes due to weather and Midwest Premium volatility Tighter scrap spreads and availability MWP impact on lower priced inventory Productivity partly offset inflation 1Q14 Other Productivity Inflation Margin / Scrap Spreads Volume / Mix 1Q13 371 396 364 86 95 372 105 111 76 23 23 76 0% 5% 10% 15% 20% 25% 0 20 40 60 80 100 120 30 20 10 5 15 0 25 |
35 35 RPEU Volume (kT) Adjusted EBITDA 1Q14 Performance 1Q Adjusted EBITDA Bridge ($M) 314 299 342 87 90 345 1Q14 1Q13 LTM 2013 2012 2011 20 25 30 35 40 3 Price 2 Volume/Mix 1 1Q13 34 30 1Q14 Currency 3 Productivity Margin/Scrap Inflation spreads 2 3 152 112 30 34 137 115 0 50 100 150 200 10% 15% 20% 25% 30% 1Q14 1Q13 2013 LTM 2012 2011 Adj. EBITDA / ton 482 457 334 327 374 349 Adjusted EBITDA ($M) EBITDA as % of Commercial Margin Strong volume growth in Automotive Aerospace impacted by customer destocking Recovering regional plate and sheet pricing Higher costs for aluminum slabs Weaker U.S. Dollar impacted margins & AR |
36 36 Extrusions Volume (kT) Adjusted EBITDA 1Q14 Performance 1Q Adjusted EBITDA Bridge ($M) 0 2 4 1Q14 3 Productivity 1 Inflation Volume/Mix 1Q13 2 8 14 11 3 2 11 0 2 4 6 8 10 12 14 0% 2% 4% 6% 8% 10% LTM 2013 2012 2011 1Q13 1Q14 Adj. EBITDA / ton 104 202 159 158 137 134 Adjusted EBITDA ($M) EBITDA as % of Commercial Margin Volume growth in automotive projects Productivity offset inflation Continuing to gain momentum; well positioned for recovery 76 68 71 19 17 69 LTM 2013 2012 2011 1Q14 1Q13 1 1 |
37 37 RSAA Volume (kT) Adjusted EBITDA 1Q14 Performance 1Q Adjusted EBITDA Bridge ($M) 895 868 847 206 217 857 1Q14 LTM 2013 2012 2011 1Q13 6 8 10 12 1Q14 9 Inflation 3 Margin/Scrap spreads 3 1Q13 10 LTM 2012 2011 1Q14 1Q13 2013 Adj. EBITDA / ton 90 62 63 62 48 43 Adjusted EBITDA ($M) EBITDA as % of Commercial Margin Continued improvement in YoY metal spreads Higher automotive volumes Harsh winter weather had significant impact on natural gas costs, scrap availability, operations and caused numerous lost shipping days 1 Volume / Mix 100 25% 60 40 20 80 0 20% 0% 15% 10% 5% 81 54 54 52 10 9 |
38 38 RSEU Volume (kT) Adjusted EBITDA 1Q14 Performance 1Q Adjusted EBITDA Bridge ($M) 387 385 365 96 95 364 LTM 2013 2012 2011 1Q14 1Q13 0 2 4 6 1Q14 4 Productivity 1 Inflation 1 Margin/Scrap spreads 1 1Q13 3 35 15 4 3 19 14 0 5 10 15 20 25 30 35 0% 5% 10% 15% 20% LTM 2013 2012 2011 1Q13 1Q14 Adj. EBITDA / ton 91 50 39 42 34 45 Adjusted EBITDA ($M) EBITDA as % of Commercial Margin Slightly higher volumes Redeployed furnace to support customer demand Continued improvement in metal spreads Productivity offset inflation |
39 39 Limited Commodity Exposure Robust risk management processes Balances credit lines and reduces liquidity risk Risk Mitigation Expected Impact Match physical purchases Eliminate LT fixed price sales Forward purchase LME LME volatility Business model Pass thru pricing Tolling Pass thru pricing-tolling Forward buy / hedge Revenue and margin % volatility Minimal earnings impact No hedge accounting treatment Locks in rolling margin Reduce multi-year dated derivatives Maintains toll margin Fixes costs Reduces FIFO “metal lag” volatility Balances hedge book and counter party exposures Active position management Counterparty Management Forward price sales Energy Inventory exposure Sell open inventory forward |
40 40 2011 – 1Q14 LTM Adjusted EBITDA Reconciliation LTM 1Q 2014 2013 2012 2011 Adjusted EBITDA 230.9 $ 236.2 $ 293.6 $ 331.6 $ Reorganization items, net - - - 1.3 Unrealized gains on derivative financial instruments (18.9) 0.7 14.3 (37.8) Impact of recording assets at fair value through fresh-start and purchase accounting 0.1 0.1 0.9 (3.4) Restructuring gains (charges) (10.3) (10.7) (9.6) (4.4) Unallocated currency exchange (losses) gains on debt (2.4) (2.9) 0.8 (0.7) Stock-based compensation expense (12.8) (14.3) (11.4) (10.1) Start-up expenses (32.8) (35.8) (27.4) (10.2) Favorable metal price lag 16.6 23.0 16.0 18.9 Other (11.7) (8.6) (7.1) (11.2) EBITDA 158.7 187.7 270.1 274.0 Loss (income from discontinued operations) - - - - Interest expense, net (103.2) (97.9) (52.4) (46.3) Benefit from (provision for) income taxes 4.6 2.6 (25.4) 4.2 Depreciation and amortization (135.5) (129.5) (84.8) (70.3) Net (loss) income attributable to Aleris Corporation (65.6) (37.1) 107.5 161.6 Net income (loss) attributable to noncontrolling interest 0.9 1.0 (0.5) (0.4) Net (loss) income (64.7) $ (36.1) $ 107.0 $ 161.2 $ For the years ended December 31, |
41 41 1Q 2014 Adjusted EBITDA Reconciliation March 31, 2014 March 31, 2013 Adjusted EBITDA 59.2 $ 64.5 $ Unrealized (losses) gains on derivative financial instruments (9.3) 10.3 Restructuring charges (0.5) (0.9) Unallocated currency exchange losses on debt - (0.5) Stock-based compensation expense (4.2) (2.7) Start-up expenses (8.4) (11.4) Favorable metal price lag 12.0 5.6 Other (2.6) 0.5 EBITDA 46.2 65.4 Interest expense, net (26.3) (21.0) Provision for income taxes (4.3) (6.3) Depreciation and amortization (33.2) (27.2) Net (loss) income attributable to Aleris Corporation (17.6) 10.9 Net income attributable to noncontrolling interest 0.3 0.4 Net (loss) income (17.3) 11.3 Depreciation and amortization 33.2 27.2 Provision for deferred income taxes 0.5 1.0 Stock-based compensation expense 4.2 2.7 Unrealized losses (gains) on derivative financial instruments 9.3 (10.3) Currency exchange losses on debt 0.3 0.4 Amortization of debt issuance costs 2.0 1.9 Other 1.1 (2.1) Change in operating assets and liabilities: Change in accounts receivable (83.5) (105.5) Change in inventories (11.1) (14.1) Change in other assets 2.3 (12.0) Change in accounts payable 90.3 52.2 Change in accrued liabilities (3.5) (8.3) Net cash provided by operating activities 27.8 $ (55.6) $ For the three months ended (in millions) |
42 42 1Q14 & 1Q13 Adjusted EBITDA Reconciliation by Segment March 31, 2014 March 31, 2013 RPNA Segment income 26.9 $ 23.5 $ Favorable metal price lag (3.7) (0.1) Segment Adjusted EBITDA (1) 23.2 $ 23.4 $ RPEU Segment income 38.1 $ 38.5 $ Impact of recording amounts at fair value through fresh-start and purchase accounting - - Favorable metal price lag (7.9) (4.8) Segment Adjusted EBITDA (1) 30.3 $ 33.6 $ RPAP Segment loss - $ �� (0.3) $ Segment Adjusted EBITDA (2) - (0.3) Extrusions Segment income 3.0 $ 3.0 $ Favorable metal price lag (0.5) (0.6) Segment Adjusted EBITDA (1) 2.6 $ 2.4 $ RSAA Segment income 9.0 $ 10.4 $ Segment Adjusted EBITDA (2) 9.0 10.4 RSEU Segment income 4.3 $ 3.3 $ Segment Adjusted EBITDA (2) 4.3 3.3 (1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table. (2) There was no difference between segment income and segment Adjusted EBITDA for this segment. For the three months ended |
43 43 2011 – 1Q14 LTM Adjusted EBITDA Reconciliation by Segment LTM March 31, 2014 2013 2012 2011 RPNA Segment income 85.2 $ 81.8 $ 117.6 $ 111.1 $ Impact of recording amounts at fair value through fresh-start and purchase accounting - - - - Favorable metal price lag (9.2) (5.6) (6.4) (6.2) Segment Adjusted EBITDA (1) 76.0 $ 76.2 $ 111.1 $ 104.9 $ RPEU Segment income 131.7 $ 132.1 $ 144.6 $ 157.6 $ Impact of recording amounts at fair value through fresh-start and purchase accounting (0.1) (0.1) (0.8) 3.8 Favorable metal price lag (19.7) (16.6) (7.1) (9.9) Segment Adjusted EBITDA 112.0 $ 115.3 $ 136.7 $ 151.5 $ Extrusions Segment (loss) income 11.7 $ 11.7 $ 16.4 $ 10.9 $ Impact of recording amounts at fair value through fresh-start and purchase accounting - - (0.1) (0.3) Unfavorable (favorable) metal price lag (0.6) (0.7) (2.6) (2.7) Segment Adjusted EBITDA (1) 11.2 $ 11.0 $ 13.8 $ 7.9 $ RSAA Segment income 52.6 $ 54.0 $ 53.6 $ 80.9 $ Impact of recording amounts at fair value through fresh-start and purchase accounting - - - - Segment Adjusted EBITDA 52.6 $ 54.0 $ 53.6 $ 80.9 $ RSEU Segment income 15.3 $ 14.3 $ 19.4 $ 35.3 $ Impact of recording amounts at fair value through fresh-start and purchase accounting - - - - Segment Adjusted EBITDA 15.3 $ 14.3 $ 19.4 $ 35.3 $ (1) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table. (in millions) For the years ended December 31, |