Fourth Quarter 2023 Highlights
- Net sales
$512.3 million - Reported net income attributable to Century stockholders of
$30.0 million , or$0.30 per diluted share; adjusted net income of$40.0 million 1, or$0.39 per share; Adjusted EBITDA attributable to Century stockholders of$57.1 million 1 - Ending cash and cash equivalents of
$88.8 million and strong liquidity of$312.5 million as of December 31, 2023 - Recorded
$59.3 million Inflation Reduction Act Advanced Manufacturing Credit
Full Year 2023 Highlights
- Net sales
$2.2 billion - Reported net loss attributable to Century stockholders of
$43.1 million , or$0.47 per share; adjusted net income of$30.7 million 1, or$0.33 per share; Adjusted EBITDA attributable to Century stockholders of$120.0 million 1 - Net cash provided by operating activities of
$105.6 million invested back into capital projects and reduction in total debt balances. - Acquired 55% in Jamalco, a bauxite mining and alumina refining operation
- Finalized three-year Mt. Holly power agreement
- Approved a new, five-year union labor contract for the Sebree smelter
$MM (except shipments and per share data) | ||||||||||||||
Q4 2023 | Q3 2023 | FY 2023 | FY 2022 | |||||||||||
Shipments (tonnes) | 173,871 | 171,995 | 700,680 | 768,691 | ||||||||||
Net sales | $ | 512.3 | $ | 545.2 | $ | 2,185.4 | $ | 2,777.3 | ||||||
Net income (loss) attributable to Century stockholders | $ | 30.0 | $ | (42.0 | ) | $ | (43.1 | ) | $ | (14.1 | ) | |||
Diluted earnings (loss) per share attributable to Century stockholders | $ | 0.30 | $ | (0.45 | ) | $ | (0.47 | ) | $ | (0.15 | ) | |||
Adjusted net income (loss)(1) attributable to Century stockholders | $ | 40.0 | $ | (13.8 | ) | $ | 30.7 | $ | 25.6 | |||||
Adjusted earnings (loss) per share(1) attributable to Century stockholders | $ | 0.39 | $ | (0.13 | ) | $ | 0.33 | $ | 0.26 | |||||
Adjusted EBITDA(1) attributable to Century stockholders | $ | 57.1 | $ | 9.3 | $ | 120.0 | $ | 143.8 | ||||||
Notes: | ||||||||||||||
(1) Non-GAAP measure; see reconciliation of GAAP to non-GAAP financial measures. | ||||||||||||||
In the fourth quarter of 2023, shipments of primary aluminum increased 1% sequentially. Net sales for the fourth quarter of 2023 decreased by 6% sequentially due to lower realized aluminum prices.
Century reported net income attributable to Century stockholders of
Adjusted EBITDA attributable to Century stockholders for the fourth quarter of 2023 was
Century's liquidity position at
For the full year 2023, shipments of primary aluminum decreased by 9% sequentially. Net sales for the full year 2023 decreased by
Century reported a net loss attributable to Century stockholders of
Adjusted EBITDA attributable to Century stockholders for the full year 2023 was
"Century’s businesses performed well despite dynamic conditions in 2023, posting
“As we enter 2024, we remain focused first and foremost on the safety of our employees and improving the communities in which we operate,” continued
First Quarter 2024 Outlook
The company expects first quarter Adjusted EBITDA to range between
About
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 | ||||||||||||
2023 | 2023 | 2022 | ||||||||||
Related parties | $ | 371.8 | $ | 400.9 | $ | 349.6 | ||||||
Other customers | 140.5 | 144.3 | 180.3 | |||||||||
Total net sales | 512.3 | 545.2 | 529.9 | |||||||||
Cost of goods sold | 472.9 | 556.7 | 549.3 | |||||||||
Gross profit (loss) | 39.4 | (11.5 | ) | (19.4 | ) | |||||||
Selling, general and administrative expenses | 8.1 | 10.8 | 11.3 | |||||||||
Other operating expense (income) - net | 2.1 | 1.9 | (0.2 | ) | ||||||||
Operating income (loss) | 29.2 | (24.2 | ) | (30.5 | ) | |||||||
Interest expense - affiliates | (1.5 | ) | — | — | ||||||||
Interest expense | (7.4 | ) | (9.2 | ) | (8.4 | ) | ||||||
Interest income | 0.9 | 0.4 | 0.3 | |||||||||
Net gain (loss) on forward and derivative contracts | 11.9 | (25.2 | ) | (90.6 | ) | |||||||
Other (expense) income - net | (0.8 | ) | 1.3 | (1.4 | ) | |||||||
Income (loss) before income taxes | 32.3 | (56.9 | ) | (130.6 | ) | |||||||
Income tax (expense) benefit | (6.6 | ) | 11.0 | 17.2 | ||||||||
Income (loss) before equity in earnings of joint ventures | 25.7 | (45.9 | ) | (113.4 | ) | |||||||
Equity in losses of joint ventures | (0.1 | ) | (0.0 | ) | (0.1 | ) | ||||||
Net income (loss) | 25.6 | (45.9 | ) | (113.5 | ) | |||||||
Net loss attributable to noncontrolling interests | (4.4 | ) | (3.9 | ) | — | |||||||
Net income (loss) attributable to Century stockholders | 30.0 | (42.0 | ) | (113.5 | ) | |||||||
Less: net income allocated to participating securities | 1.6 | — | — | |||||||||
Net income (loss) allocated to common stockholders | $ | 28.4 | $ | (42.0 | ) | $ | (113.5 | ) | ||||
INCOME (LOSS) ATTRIBUTABLE TO CENTURY STOCKHOLDERS PER COMMON SHARE: | ||||||||||||
Basic | $ | 0.31 | $ | (0.45 | ) | $ | (1.24 | ) | ||||
Diluted | $ | 0.30 | $ | (0.45 | ) | $ | (1.24 | ) | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||
Basic | 92.5 | 92.4 | 91.7 | |||||||||
Diluted | 103.3 | 92.4 | 91.7 | |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
2023 | 2022 | ||||||
Related parties | $ | 1,612.1 | 1,671.1 | ||||
Other customers | 573.3 | 1,106.2 | |||||
Total net sales | 2,185.4 | 2,777.3 | |||||
Cost of goods sold | 2,093.5 | 2,730.6 | |||||
Gross profit | 91.9 | 46.7 | |||||
Selling, general and administrative expenses | 44.3 | 37.5 | |||||
Asset impairment | — | 159.4 | |||||
Other operating expense - net | 15.8 | — | |||||
Operating income (loss) | 31.8 | (150.2 | ) | ||||
Interest expense - affiliates | (1.8 | ) | — | ||||
Interest expense | (33.7 | ) | (29.3 | ) | |||
Interest income | 2.0 | 0.5 | |||||
Net (loss) gain on forward and derivative contracts | (61.8 | ) | 197.1 | ||||
Other (loss) income - net | (3.3 | ) | 15.3 | ||||
(Loss) income before income taxes | (66.8 | ) | 33.4 | ||||
Income tax benefit (expense) | 14.6 | (47.4 | ) | ||||
Loss before equity in earnings of joint ventures | (52.2 | ) | (14.0 | ) | |||
Equity in losses of joint ventures | (0.1 | ) | (0.1 | ) | |||
Net loss | (52.3 | ) | (14.1 | ) | |||
Net loss attributable to noncontrolling interests | (9.2 | ) | — | ||||
Net loss attributable to Century stockholders | $ | (43.1 | ) | (14.1 | ) | ||
LOSS ATTRIBUTABLE TO CENTURY STOCKHOLDERS PER COMMON SHARE: | |||||||
Basic and diluted | $ | (0.47 | ) | $ | (0.15 | ) | |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||
Basic and diluted | 92.4 | 91.4 | |||||
CONSOLIDATED BALANCE SHEETS | |||||||
(in millions, except per share amounts) | |||||||
(Unaudited) | |||||||
2023 | 2022 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 88.8 | $ | 54.3 | |||
Restricted cash | 1.5 | 1.2 | |||||
Accounts receivable - net | 53.7 | 66.9 | |||||
Non-trade receivables | 36.2 | — | |||||
Due from affiliates | 20.2 | 4.8 | |||||
Manufacturing credit receivable | 59.3 | — | |||||
Inventories | 477.0 | 398.8 | |||||
Derivative assets | 2.9 | 127.3 | |||||
Prepaid and other current assets | 27.5 | 24.5 | |||||
Total current assets | 767.1 | 677.8 | |||||
Property, plant and equipment - net | 1,005.5 | 744.4 | |||||
Other assets | 79.6 | 49.8 | |||||
TOTAL | $ | 1,852.2 | $ | 1,472.0 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES: | |||||||
Accounts payable, trade | $ | 248.9 | $ | 167.3 | |||
Accrued compensation and benefits | 38.1 | 33.0 | |||||
Due to affiliates | 101.4 | 17.0 | |||||
Accrued and other current liabilities | 50.9 | 37.6 | |||||
Derivative liabilities | 1.4 | 9.7 | |||||
Deferred credit - preliminary bargain purchase gain | 181.2 | — | |||||
Current debt due to affiliates | 10.0 | — | |||||
Current maturities of long-term debt | 38.3 | 146.1 | |||||
Total current liabilities | 670.2 | 410.7 | |||||
Long-term debt | 430.9 | 381.6 | |||||
Accrued benefits costs - less current portion | 120.3 | 118.0 | |||||
Other liabilities | 66.3 | 31.4 | |||||
Due to affiliates - less current portion | — | 8.3 | |||||
Deferred taxes | 72.4 | 103.1 | |||||
Asset retirement obligations - less current portion | 62.2 | 19.6 | |||||
Total noncurrent liabilities | 752.1 | 662.0 | |||||
SHAREHOLDERS’ EQUITY: | |||||||
Series A Preferred stock ( | 0.0 | 0.0 | |||||
Common stock ( | 1.0 | 1.0 | |||||
Additional paid-in capital | 2,542.9 | 2,539.6 | |||||
(86.3 | ) | (86.3 | ) | ||||
Accumulated other comprehensive loss | (97.9 | ) | (94.0 | ) | |||
Accumulated deficit | (2,004.1 | ) | (1,961.0 | ) | |||
Total Century shareholders’ equity | 355.6 | 399.3 | |||||
Noncontrolling interest | 74.3 | — | |||||
Total equity | 429.9 | 399.3 | |||||
TOTAL | $ | 1,852.2 | $ | 1,472.0 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
(in millions) | |||||||
(Unaudited) | |||||||
Twelve months ended | |||||||
2023 | 2022 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (52.3 | ) | $ | (14.1 | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Lower of cost or NRV inventory adjustment | — | 39.6 | |||||
Unrealized loss (gain) on derivative instruments | 87.1 | (201.5 | ) | ||||
Depreciation, depletion and amortization | 74.7 | 73.4 | |||||
Change in deferred tax (benefit) provision | (30.8 | ) | 44.2 | ||||
Asset impairment | — | 159.4 | |||||
Other postretirement benefits gain, net | — | (8.9 | ) | ||||
Other non-cash items - net | 3.4 | (22.8 | ) | ||||
Change in operating assets and liabilities, net of acquisition: | |||||||
Accounts receivable - net | 36.9 | 13.7 | |||||
Non-trade receivables | 4.1 | — | |||||
Manufacturing credit receivable | (59.3 | ) | — | ||||
Due from affiliates | (15.5 | ) | 3.6 | ||||
Inventories | 25.8 | (12.8 | ) | ||||
Prepaid and other current assets | 2.9 | 5.6 | |||||
Accounts payable, trade | (19.4 | ) | (15.8 | ) | |||
Due to affiliates | 51.7 | (43.5 | ) | ||||
Accrued and other current liabilities | — | 8.8 | |||||
Ravenswood retiree legal settlement | (2.0 | ) | (2.0 | ) | |||
PBGC settlement | (4.5 | ) | (2.4 | ) | |||
Other - net | 2.8 | 1.4 | |||||
Net cash provided by operating activities | 105.6 | 25.9 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property, plant and equipment | (95.0 | ) | (86.3 | ) | |||
Proceeds from sale of property, plant and equipment | 25.7 | 0.8 | |||||
Acquisition of subsidiary net of cash acquired | 11.5 | — | |||||
Net cash used in investing activities | (57.8 | ) | (85.5 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Borrowings under revolving credit facilities | 656.9 | 1,126.2 | |||||
Repayments under revolving credit facilities | (758.2 | ) | (1,114.8 | ) | |||
Debt issuance cost | — | (1.5 | ) | ||||
Borrowings under Grundartangi casthouse debt facility | 55.0 | 50.0 | |||||
Borrowings under | — | 14.5 | |||||
Repayments under | (13.5 | ) | — | ||||
Borrowings under Vlissingen facility agreement | 10.0 | — | |||||
Carbon credit proceeds | 36.8 | — | |||||
Net cash (used in) provided by financing activities | (13.0 | ) | 74.4 | ||||
CHANGE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH | 34.8 | 14.8 | |||||
Cash, cash equivalents and restricted cash, beginning of year | 55.5 | 40.7 | |||||
Cash, cash equivalents and restricted cash, end of year | $ | 90.3 | $ | 55.5 | |||
SELECTED OPERATING DATA (in millions, except shipments) (Unaudited) | |||||||||||||||
SHIPMENTS - PRIMARY ALUMINUM(1) | |||||||||||||||
Total | |||||||||||||||
Tonnes | Sales $ | Tonnes | Sales $ | Tonnes | Sales $ | ||||||||||
2023 | |||||||||||||||
4th Quarter | 96,002 | $ | 259.2 | 77,869 | $ | 196.7 | 173,871 | $ | 455.9 | ||||||
3rd Quarter | 93,675 | $ | 265.8 | 78,320 | $ | 207.9 | 171,995 | $ | 473.7 | ||||||
2nd Quarter | 97,224 | $ | 296.4 | 76,425 | $ | 212.3 | 173,649 | $ | 508.7 | ||||||
1st Quarter | 102,430 | $ | 317.6 | 78,735 | $ | 210.1 | 181,165 | $ | 527.7 | ||||||
Full Year 2023 | 389,331 | $ | 1,139.0 | 311,349 | $ | 827.0 | 700,680 | $ | 1,966.0 | ||||||
Full Year 2022 | 459,991 | $ | 1,650.4 | 308,700 | $ | 1,040.1 | 768,691 | $ | 2,690.5 |
Notes:
(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 | EPS | |||||||||||||
Net income (loss) attributable to Century stockholders(1) | $ | 30.8 | $ | 0.30 | $ | (42.0 | ) | $ | (0.43 | ) | ||||||
Lower of cost or NRV inventory adjustment, net of tax | (3.0 | ) | (0.03 | ) | (4.2 | ) | (0.04 | ) | ||||||||
Unrealized loss on derivative contracts, net of tax | 2.9 | 0.03 | 21.9 | 0.22 | ||||||||||||
Share-based compensation | 1.3 | 0.01 | 1.0 | 0.01 | ||||||||||||
Jamalco acquisition costs | 0.6 | 0.01 | 0.2 | — | ||||||||||||
Jamalco equipment failure | 7.4 | 0.07 | 9.3 | 0.10 | ||||||||||||
Impact of preferred and convertible shares | — | — | — | 0.01 | ||||||||||||
Adjusted net income (loss) attributable to Century stockholders | $ | 40.0 | $ | 0.39 | $ | (13.8 | ) | $ | (0.13 | ) | ||||||
Notes: | ||||||||||||||||
(1) In periods of positive earnings, this represents earnings allocated to participating dilutive shares. For the three months ended |
Three months ended | ||||||||
Net income (loss) attributable to Century stockholders, as reported | $ | 30.0 | $ | (42.0 | ) | |||
Add: Net loss attributable to noncontrolling interests | (4.4 | ) | (3.9 | ) | ||||
Net income (loss) | 25.6 | (45.9 | ) | |||||
Interest expense - affiliates | 1.5 | — | ||||||
Interest expense | 7.4 | 9.2 | ||||||
Interest income | (0.9 | ) | (0.4 | ) | ||||
Net (gain) loss on forward and derivative contracts | (11.9 | ) | 25.2 | |||||
Other expense (income) - net | 0.8 | (1.3 | ) | |||||
Income tax expense (benefit) | 6.6 | (11.0 | ) | |||||
Equity in losses of joint ventures | 0.1 | — | ||||||
Operating income (loss) | 29.2 | (24.2 | ) | |||||
Lower of cost or NRV inventory adjustment | (6.5 | ) | (4.6 | ) | ||||
Share-based compensation | 2.0 | 1.0 | ||||||
Jamalco acquisition costs | 0.6 | 0.2 | ||||||
Jamalco equipment failure | 13.5 | 16.9 | ||||||
Depreciation, depletion and amortization | 21.1 | 25.6 | ||||||
Adjusted EBITDA | 59.9 | 14.9 | ||||||
Less: Adjusted EBITDA attributable to noncontrolling interests | 2.8 | 5.6 | ||||||
Adjusted EBITDA attributable to Century stockholders | $ | 57.1 | $ | 9.3 | ||||
Twelve months ended | ||||||||||||||||
$MM | EPS | $MM | EPS | |||||||||||||
Net (loss) income attributable to Century stockholders | $ | (43.1 | ) | $ | (0.47 | ) | $ | (18.8 | ) | $ | (0.21 | ) | ||||
Lower of cost or NRV inventory adjustment, net of tax | (26.2 | ) | (0.28 | ) | 38.2 | 0.42 | ||||||||||
Unrealized loss (gain) on derivative contracts, net of tax | 68.3 | 0.74 | (169.4 | ) | (1.85 | ) | ||||||||||
Asset impairment | — | — | 159.4 | 1.74 | ||||||||||||
Hawesville curtailment costs | 9.0 | 0.10 | 10.0 | 0.11 | ||||||||||||
Share-based compensation | 6.6 | 0.07 | 0.1 | 0.00 | ||||||||||||
(2.5 | ) | (0.03 | ) | — | — | |||||||||||
Jamalco acquisition costs | 1.5 | 0.02 | — | — | ||||||||||||
Jamalco equipment failure | 16.7 | 0.18 | — | — | ||||||||||||
Impact of preferred and convertible shares | 0.4 | — | 6.1 | 0.05 | ||||||||||||
Adjusted net income (loss) attributable to Century stockholders | $ | 30.7 | $ | 0.33 | $ | 25.6 | $ | 0.26 | ||||||||
Twelve months ended | ||||||||
Net loss attributable to Century stockholders, as reported | $ | (43.1 | ) | $ | (14.1 | ) | ||
Add: Net loss attributable to noncontrolling interests | (9.2 | ) | — | |||||
Net loss | (52.3 | ) | (14.1 | ) | ||||
Interest expense - affiliates | 1.8 | — | ||||||
Interest expense | 33.7 | 29.3 | ||||||
Interest income | (2.0 | ) | (0.5 | ) | ||||
Net loss (gain) on forward and derivative contracts | 61.8 | (197.1 | ) | |||||
Other expense (income) - net | 3.3 | (15.3 | ) | |||||
Income tax (benefit) expense | (14.6 | ) | 47.4 | |||||
Equity in losses of joint ventures | 0.1 | 0.1 | ||||||
Operating income (loss) | 31.8 | (150.2 | ) | |||||
Lower of cost or NRV inventory adjustment | (30.9 | ) | 39.6 | |||||
Asset impairment | — | 159.4 | ||||||
Hawesville curtailment costs | 9.0 | 18.1 | ||||||
Share-based compensation | 6.6 | (0.6 | ) | |||||
(2.5 | ) | — | ||||||
Jamalco acquisition costs | 1.5 | — | ||||||
Jamalco equipment failure | 30.4 | — | ||||||
Depreciation, depletion and amortization | 81.6 | 77.5 | ||||||
Adjusted EBITDA | 127.5 | 143.8 | ||||||
Less: Adjusted EBITDA attributable to noncontrolling interests | 7.5 | — | ||||||
Adjusted EBITDA attributable to Century stockholders | $ | 120.0 | $ | 143.8 | ||||
Contact
(Investors and media)
312-696-3132
Source: Century Aluminum Company
Source:
2024 GlobeNewswire, Inc., source