Exhibit 99.1
[NEWS RELEASE LOGO]
[CENTURY ALUMINUM LOGO]
CENTURY REPORTS FOURTH QUARTER FINANCIAL RESULTS
Monterey, CA, February 24, 2004 - Century Aluminum Company (NASDAQ:
CENX) reported a net loss of $6.3 million, or $0.32 a common share after
preferred dividends, for the fourth quarter of 2003.
The quarter includes net after-tax charges of $6.3 million, or $0.30 a
share, comprised of: an after-tax charge of $8.0 million, or $0.38 a common
share, for marking to market the 110-million-pound-a-year, fixed-price metal
delivery contract that remains in place for 2003 and 2004 and other financial
instruments that do not qualify for cash-flow hedge accounting; an after-tax
charge of $2.0 million, or $0.09 a common share, resulting from the departure of
an executive; and an after-tax credit of $3.7 million, or $0.17 a common share,
for lower of cost or market inventory adjustments.
The fourth quarter 2003 results compare with a loss of $2.8 million, or
$0.16 a share, for the fourth quarter of 2002. The year-ago quarter included an
after-tax credit of $1.8 million, or $0.09 a common share, for lower of cost or
market inventory adjustments.
For all of 2003, Century reported net income of $1.0 million, or a loss
of $0.05 a common share after preferred dividends. This compares with a net loss
of $18.6 million, or $1.00 a common share after preferred dividends, for 2002.
Sales for the fourth quarter of 2003 were $205.8 million compared with
$174.9 million for the fourth quarter of 2002. Shipments of primary aluminum for
the 2003 fourth quarter were 286.9 million pounds, compared with 261.5 million
pounds for the year-ago quarter.
For all of 2003 sales were $782.5 million, compared with $711.3 million
for all of 2002. Shipments of primary aluminum for all of 2003 were 1.13 billion
pounds compared with 1.05 billion pounds for the prior year.
Financial statements for 2002 and the first quarter of 2003 exclude the
results from the acquisition of the 20-percent interest in Century's Hawesville
(KY) Operations on April 1, 2003.
Commenting on the company's performance, Craig A. Davis, chairman and
chief executive officer, said:
"Our operating results in 2003 improved significantly due to stronger
aluminum prices, contributions from the additional 20-percent share of our
Hawesville (KY) Operations that we acquired in April 2003, and our cost
reduction efforts."
Century owns 525,000 metric tons per year (mtpy) of primary aluminum
capacity. It owns and operates the 170,000-mtpy plant at Ravenswood, WV and the
244,000-
Century Aluminum Company
2511 Garden Road
Building A, Suite 200
Monterey, CA 93940
831-642-9300 Phone
831-642-9399 Fax
Exhibit 99.1
[NEWS RELEASE LOGO]
[CENTURY ALUMINUM LOGO]
mtpy plant at Hawesville, KY. Century also owns a 49.67 percent interest in the
222,000-mtpy reduction plant at Mt. Holly, SC. Alcoa, Inc. owns the remainder
and is the operating partner. Century's headquarters are in Monterey, CA.
Century's press releases may contain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995. The
company cautions that such forward-looking statements are not guarantees of
future performance and involve significant risks and uncertainties. Actual
results may vary.
Editorial Contact: A. T. Posti 831/642-9364
Century Aluminum Company
2511 Garden Road
Building A, Suite 200
Monterey, CA 93940
831-642-9300 Phone
831-642-9399 Fax
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Amounts)
(Unaudited)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
----------------------- -----------------------
2003 2002 2003 2002
--------- --------- --------- ---------
NET SALES:
Third-party customers ............................................... $ 173,306 $ 151,755 $ 660,593 $ 603,744
Related parties ..................................................... 32,509 23,154 121,886 107,594
--------- --------- --------- ---------
205,815 174,909 782,479 711,338
COST OF GOODS SOLD ....................................................... 183,298 167,361 734,441 691,277
--------- --------- --------- ---------
GROSS PROFIT ............................................................. 22,517 7,548 48,038 20,061
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ............................. 8,683 3,562 20,833 15,783
--------- --------- --------- ---------
OPERATING INCOME ......................................................... 13,834 3,986 27,205 4,278
INTEREST INCOME (EXPENSE) - Net .......................................... (10,893) (10,146) (43,509) (40,421)
NET GAIN (LOSS) ON FORWARD CONTRACTS ..................................... (12,732) - 25,691 -
OTHER INCOME (EXPENSE) ................................................... (179) 131 (688) (1,843)
--------- --------- --------- ---------
INCOME (LOSS) BEFORE INCOME TAXES ........................................ (9,970) (6,029) 8,699 (37,986)
INCOME TAX (EXPENSE) BENEFIT ............................................. 3,715 1,939 (2,841) 14,126
--------- --------- --------- ---------
INCOME (LOSS) BEFORE MINORITY INTEREST AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ................... (6,255) (4,090) 5,858 (23,860)
MINORITY INTEREST ........................................................ - 1,313 986 5,252
--------- --------- --------- ---------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE ........................................ (6,255) (2,777) 6,844 (18,608)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE, NET OF TAX BENEFIT OF $3.4 MILLION ......................... - - (5,878) -
--------- --------- --------- ---------
NET INCOME (LOSS) ........................................................ (6,255) (2,777) 966 (18,608)
PREFERRED DIVIDENDS ...................................................... (500) (500) (2,000) (2,000)
--------- --------- --------- ---------
NET LOSS APPLICABLE TO COMMON SHAREHOLDERS ............................... $ (6,755) $ (3,277) $ (1,034) $ (20,608)
========= ========= ========= =========
EARNINGS (LOSS) PER COMMON SHARE
Basic - Before cumulative effect of change in accounting principle .... $ (0.32) $ (0.16) $ 0.23 $ (1.00)
Basic - Cumulative effect of change in accounting principle ........... $ - $ - $ (0.28) $ -
--------- --------- --------- ---------
Basic - Net income (loss) ............................................. $ (0.32) $ (0.16) $ (0.05) $ (1.00)
Diluted - Before cumulative effect of change in accounting principle... $ (0.32) $ (0.16) $ 0.23 $ (1.00)
Diluted - Cumulative effect of change in accounting principle ......... $ - $ - $ (0.28) $ -
--------- --------- --------- ---------
Diluted - Net income (loss) ........................................... $ (0.32) $ (0.16) $ (0.05) $ (1.00)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic ................................................................. 21,083 20,560 21,073 20,555
Diluted ............................................................... 21,083 20,560 21,099 20,555
DIVIDENDS PER COMMON SHARE ............................................... $ - $ - $ - $ 0.15
SEE NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
CENTURY ALUMINUM COMPANY
NOTES TO CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Amounts)
(Unaudited)
2003
Cost of Goods Sold includes a credit of $5,905 and $7,522 for net lower of cost
or market inventory adjustments in the quarter and year to date respectively.
Cost of Goods Sold also includes a charge of $1,555 for the year for additional
costs associated with third quarter 2003 spot purchases of alumina due to a
supplier production curtailment.
SG&A includes a charge of $3,132 for the quarter and year to date for the
acceleration of vested compensation benefits related to an executive
resignation.
2002
Cost of Goods Sold includes a credit of $2,901 and $247 for net lower of cost or
market inventory adjustments in the quarter and year to date respectively.
Year to date Other Income (Expense) includes a charge of ($1,675) to write-off
deferred acquisition costs.
Income Tax Benefit includes a benefit of $1,500 for the year from a reduction in
estimated income taxes.
CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
DECEMBER 31, DECEMBER 31,
2003 2002
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents .................................................... $ 28,204 $ 45,092
Accounts receivable - net .................................................... 51,370 46,240
Due from affiliates .......................................................... 10,957 22,732
Inventories .................................................................. 89,360 77,135
Prepaid and other current assets ............................................. 4,101 4,777
Deferred taxes - current portion ............................................. 3,413 -
--------- ---------
Total current assets .................................................... 187,405 195,976
Property, Plant and Equipment - Net ............................................... 494,957 417,621
Intangible Asset - Net ............................................................ 99,136 119,744
Due from Affiliates - Less current portion ........................................ - 974
Other Assets ...................................................................... 28,828 30,852
--------- ---------
Total ................................................................... $ 810,326 $ 765,167
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade ...................................................... $ 34,829 $ 37,757
Due to affiliates ............................................................ 27,139 15,811
Industrial revenue bonds ..................................................... 7,815 7,815
Accrued and other current liabilities ........................................ 30,154 24,114
Accrued employee benefits costs - current portion ............................ 8,934 10,890
Deferred taxes - current portion ............................................. - 4,971
--------- ---------
Total current liabilities ............................................... 108,871 101,358
Senior Secured Notes Payable - Net ................................................ 322,310 321,852
Note Payable - Affiliates ......................................................... 14,000 -
Accrued Pension Benefit Costs - Less current portion .............................. 10,764 10,751
Accrued Postretirement Benefits Costs - Less current portion ...................... 78,218 70,656
Other Liabilities ................................................................. 33,372 8,376
Deferred Taxes - Less current portion ............................................. 55,094 41,376
--------- ---------
Total noncurrent liabilities ............................................ 513,758 453,011
MINORITY INTEREST ................................................................. - 18,666
SHAREHOLDERS' EQUITY:
Convertible Preferred Stock (8.0% cumulative, 500,000 shares outstanding) .... 25,000 25,000
Common Stock (one cent par value, 50,000,000 shares authorized; 21,130,839
shares outstanding at December 31, 2003 and 21,054,302 at December 31,
2002) ...................................................................... 211 211
Additional Paid-In Capital ................................................... 173,138 172,133
Accumulated Other Comprehensive Income (Loss) ................................ (5,222) 1,173
Accumulated Deficit .......................................................... (5,430) (6,385)
--------- ---------
Total shareholders' equity .............................................. 187,697 192,132
--------- ---------
Total ................................................................... $ 810,326 $ 765,167
========= =========
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in Thousands)
(Unaudited)
YEAR ENDED
DECEMBER 31
-------------------------
2003 2002
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ......................................................... $ 966 $(18,608)
Adjustments to reconcile net income (loss) to net cash provided by
operating activities:
Unrealized net loss on forward contracts .............................. 6,325 -
Depreciation and amortization ......................................... 51,264 56,655
Deferred income taxes ................................................. 8,892 4,965
Pension and other postretirement benefits ............................. 10,986 10,415
Workers' Compensation ................................................. 1,426 1,619
Inventory market adjustment ........................................... (7,522) (247)
Loss on disposal of assets ............................................ 1,040 252
Minority Interest ..................................................... (986) (5,252)
Cumulative effect of change in accounting principle ................... 9,308 -
Change in operating assets and liabilities:
Accounts receivable - net ........................................ (5,130) 2,125
Due from affiliates .............................................. (2,155) 2,918
Inventories ...................................................... (2,762) (1,671)
Prepaids and other assets ........................................ (261) (1,838)
Accounts payable, trade .......................................... (2,928) (4,637)
Due to affiliates ................................................ 3,660 10,142
Accrued and other current liabilities ............................ 2,211 (3,447)
Other - net ...................................................... 13,045 1,095
-------- --------
Net cash provided by operating activities ............................. 87,379 54,486
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment ................................. (18,858) (18,427)
Business acquisitions ..................................................... (59,837) -
Proceeds from sale of property, plant and equipment ....................... - 231
-------- --------
Net cash used in investing activities ................................. (78,695) (18,196)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payments - Notes Payable - Affiliates ..................................... (26,000) -
Financing fees ............................................................ (297) -
Dividends ................................................................. (11) (4,591)
Issuance of common stock .................................................. 736 5
-------- --------
Net cash used in financing activities ................................. (25,572) (4,586)
-------- --------
NET INCREASE (DECREASE) IN CASH ................................................ (16,888) 31,704
CASH, BEGINNING OF PERIOD ...................................................... 45,092 13,388
-------- --------
CASH, END OF PERIOD ............................................................ $ 28,204 $ 45,092
======== ========
CENTURY ALUMINUM COMPANY
SELECTED OPERATING DATA
(in Thousands, Except Dollars per Pound)
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct
-------------------------
Pounds $/Pound
--------- --------
2003
4th Quarter 286,912 $ 0.72
3rd Quarter 292,567 $ 0.69
2nd Quarter 290,023 $ 0.68
1st Quarter 257,040 $ 0.70
--------- --------
Total 1,126,542 $ 0.69
2002
4th Quarter 261,544 $ 0.67
3rd Quarter 262,262 $ 0.67
2nd Quarter 262,470 $ 0.69
1st Quarter 263,019 $ 0.68
--------- --------
Total 1,049,295 $ 0.68