EXHIBIT 99.1
CENTURY ALUMINUM REPORTS FIRST QUARTER 2005 EARNINGS
MONTEREY, Calif. May 4, 2005 - Century Aluminum Company (NASDAQ:CENX) reported
net income of $11.1 million, or $0.35 a share, for the first quarter of 2005.
Reported first quarter net income was negatively impacted by an after-tax charge
of $14.8 million, or $0.46 a share, for mark to market adjustments on forward
contracts that do not qualify for cash flow hedge accounting.
Net income in the first quarter of 2004 was $4.8 million, or $0.20 a share.
First quarter 2004 net income included net after-tax charges of $6.7 million, or
$0.31 a share, which were principally related to mark to market adjustments on
forward contracts. Financial results for the first quarter of 2004 excluded
Nordural, which was acquired on April 27, 2004.
Sales in the 2005 first quarter were $285.4 million, compared to $232.1 million
in the year-ago quarter. Operating income for the first quarter was $41.8
million, up 32-percent from $31.6 million the same period a year ago.
Shipments of primary aluminum totaled 337.0 million pounds, up from 296.7
million pounds in the first quarter of 2004. Excluding Nordural toll volume,
direct shipments were down 10.0 million pounds, reflecting slightly lower
production rates, and one fewer production day in the first quarter of 2005
versus 2004.
"Our operating income approached record levels in the first quarter," said Craig
Davis, Chairman and Chief Executive Officer. "While we benefited from robust
aluminum prices, we will continue to focus on improving our operations and
reducing costs."
Century owns 615,000 metric tonnes per year (mtpy) of primary aluminum capacity.
The company owns and operates a 244,000 mtpy plant at Hawesville, Kentucky; a
170,000 mtpy plant at Ravenswood, West Virginia; and a 90,000 mtpy plant at
Grundartangi, Iceland that will be expanded to 212,000 mtpy in 2006. The company
also owns a 49.67-percent interest in a 222,000 mtpy reduction plant at Mt.
Holly, South Carolina. Alcoa Inc. owns the remainder of the plant and is the
operating partner. Century also holds a 50-percent share of the 1.25 million
mtpy Gramercy Alumina refinery in Gramercy, Louisiana and related bauxite assets
in Jamaica. Century's corporate offices are located in Monterey, California.
This press release may contain "forward-looking statements" within the meaning
of U.S. federal securities laws. The company has based its forward-looking
statements on current expectations and projections about the future, however,
these statements are subject to risks, uncertainties and assumptions, any of
which could cause the company's actual results to differ materially from those
expressed in its forward-looking statements. More information about these risks,
uncertainties and assumptions can be found in the risk factors and
forward-looking statements cautionary language contained in the company's Annual
Report on Form 10-K and in other filings made with the Securities and Exchange
Commission. The company does not undertake, and specifically disclaims, any
obligation to revise any forward-looking statements to reflect the occurrence of
anticipated or unanticipated events or circumstances after the date such
forward-looking statements are made.
Century Aluminum Company, Monterey, California
Michael Dildine, 831-642-9364
mdildine@centuryca.com
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in Thousands, Except Per Share Amounts)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
-----------------------------
2005 2004
--------- ---------
NET SALES:
Third-party customers ............................................................... $ 247,425 $ 192,346
Related parties ..................................................................... 37,971 39,748
--------- ---------
285,396 232,094
COST OF GOODS SOLD ....................................................................... 234,788 195,045
--------- ---------
GROSS PROFIT ............................................................................. 50,608 37,049
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES ............................................. 8,796 5,408
--------- ---------
OPERATING INCOME ......................................................................... 41,812 31,641
INTEREST EXPENSE - Net ................................................................... (6,466) (10,607)
NET LOSS ON FORWARD CONTRACTS ............................................................ (23,495) (12,820)
OTHER INCOME (EXPENSE) ................................................................... 407 (614)
--------- ---------
INCOME BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF JOINT VENTURE ....................... 12,258 7,600
INCOME TAX EXPENSE ....................................................................... (6,479) (2,800)
--------- ---------
INCOME BEFORE EQUITY IN EARNINGS OF JOINT VENTURE ........................................ 5,779 4,800
EQUITY IN EARNINGS OF JOINT VENTURE ...................................................... 5,348 -
--------- ---------
NET INCOME ............................................................................... 11,127 4,800
PREFERRED DIVIDENDS ...................................................................... - (500)
--------- ---------
NET INCOME APPLICABLE TO COMMON SHAREHOLDERS ............................................. $ 11,127 $ 4,300
========= =========
EARNINGS PER COMMON SHARE
Basic - Net income ................................................................... $ 0.35 $ 0.20
Diluted - Net income ................................................................. $ 0.35 $ 0.20
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Basic ............................................................................... 32,057 21,195
Diluted ............................................................................. 32,129 21,384
CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
(Unaudited)
MARCH 31, DECEMBER 31,
ASSETS 2005 2004
------------ -------------
CURRENT ASSETS:
Cash ......................................................................................... $ 52,763 $ 44,168
Restricted cash .............................................................................. 1,677 1,678
Accounts receivable - net .................................................................... 87,778 79,576
Due from affiliates .......................................................................... 14,269 14,371
Inventories .................................................................................. 103,427 108,555
Prepaid and other assets ..................................................................... 12,759 10,055
Deferred taxes - current portion ............................................................. 34,370 25,688
------------ -------------
Total current assets .................................................................... 307,043 284,091
Property, plant and equipment - net ............................................................... 863,248 806,250
Intangible asset - net ............................................................................ 85,663 86,809
Goodwill .......................................................................................... 94,844 95,610
Other assets ...................................................................................... 70,563 58,110
------------ -------------
Total ................................................................................... $ 1,421,361 $ 1,330,870
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade ...................................................................... $ 55,590 $ 47,479
Due to affiliates ............................................................................ 97,030 84,815
Accrued and other current liabilities ........................................................ 49,221 53,309
Accrued employee benefits costs - current portion ............................................ 8,458 8,458
Convertible senior notes ..................................................................... 175,000 175,000
Industrial revenue bonds ..................................................................... 7,815 7,815
Long term debt - current portion ............................................................. 10,589 10,582
------------ -------------
Total current liabilities ............................................................... 403,703 387,458
Senior unsecured notes payable .................................................................... 250,000 250,000
Nordural debt ..................................................................................... 117,376 80,711
Accrued pension benefit costs - less current portion .............................................. 11,070 10,685
Accrued postretirement benefits costs - less current portion ...................................... 88,378 85,549
Other liabilities ................................................................................. 33,740 34,961
Due to affiliates - less current portion .......................................................... 64,477 30,416
Deferred taxes .................................................................................... 73,909 68,273
------------ -------------
Total noncurrent liabilities ............................................................ 638,950 560,595
SHAREHOLDERS' EQUITY:
Common stock (one cent par value, 50,000,000 shares authorized; 32,088,270
shares outstanding at March 31, 2005 and 32,038,297 at December 31, 2004) .................. 321 320
Additional paid-in capital ................................................................... 416,400 415,453
Accumulated other comprehensive loss ......................................................... (68,354) (52,186)
Retained earnings ............................................................................ 30,341 19,230
------------ -------------
Total shareholders' equity .............................................................. 378,708 382,817
------------ -------------
Total ................................................................................... $ 1,421,361 $ 1,330,870
============ =============
CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOW
(Dollars in Thousands)
(Unaudited)
THREE MONTHS ENDED
MARCH 31,
2005 2004
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income .................................................................................. $ 11,127 $ 4,800
Adjustments to reconcile net income to net cash provided by
operating activities:
Unrealized loss on forward contracts .................................................... 22,269 9,750
Depreciation and amortization ........................................................... 13,794 11,241
Deferred income taxes ................................................................... 6,479 2,800
Pension and other postretirement benefits ............................................... 3,214 2,342
Inventory market adjustment ............................................................. - (2,273)
(Gain) Loss on disposal of assets ....................................................... (31) 626
Change in operating assets and liabilities:
Accounts receivable - net .......................................................... (8,202) (9,966)
Due from affiliates ................................................................ 102 (935)
Inventories ........................................................................ 5,128 3,663
Prepaid and other assets ........................................................... (1,395) 2,037
Accounts payable, trade ............................................................ (3,175) 922
Due to affiliates .................................................................. (9,146) (7,147)
Accured and other current liabilities .............................................. (7,951) 9,740
Other - net. ....................................................................... (5,148) (928)
----------- -----------
Net cash provided by operating activities ............................................... 27,065 26,672
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment ................................................... (2,540) (1,802)
Nordural expansion .......................................................................... (48,988) -
Proceeds from sale of property, plant and equipment ......................................... 59 -
----------- -----------
Net cash used in investing activities ................................................... (51,469) (1,802)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings .................................................................................. 105,325 -
Repayment of third party debt ............................................................... (68,658) -
Financing fees .............................................................................. (4,617) -
Issuance of common stock .................................................................... 949 1,051
Net cash provided by financing activities ............................................... 32,999 1,051
----------- -----------
NET INCREASE IN CASH .............................................................................. 8,595 25,921
CASH, BEGINNING OF PERIOD ......................................................................... 44,168 28,204
----------- -----------
CASH, END OF PERIOD ............................................................................... $ 52,763 $54,125
=========== ===========
CENTURY ALUMINUM COMPANY
SELECTED OPERATING DATA
(Unaudited)
SHIPMENTS - PRIMARY ALUMINUM
Direct (1) Toll
------------------------------------------------- -----------------------------------------------
Metric Tons Pounds (000) $/Pound Metric Tons Pounds (000) Revenue
----------- ------------ ------- ----------- ------------ -------
2005
----
1st Quarter 130,083 286,783 $ 0.88 22,756 50,168 $ 33,372
2004
----
1st Quarter 134,600 296,743 $ 0.78 - - -
(1) Does not include Toll shipments from Nordural
FORWARD PRICED SALES - AS OF MARCH 31, 2005
2005(1) 2006(2) 2007(2) 2008-2010(3)
------- ------- ------- ------------
Pounds (000) 348,856 370,266 374,565 515,881
Metric Tons 158,239 167,950 169,900 234,000
(1) The forward priced sales in 2005 exclude April 2005 shipments
to customers that are priced based upon the prior month's
market price.
(2) The forward priced sales in 2006 and 2007 may increase by up
to 25,200 and 50,400 metric tons respectively, depending on
the market price in the month of sale.
(3) The forward priced sales in 2008 through 2010 may increase by
up to 225,000 metric tons depending on the market price in the
month of sale.