Delaware | 001-34474 | 13-3070826 | ||||||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
One South Wacker Drive |
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Suite 1000 | |||||
Chicago | |||||
Illinois | 60606 | ||||
(Address of Principal Executive Offices) |
(Zip Code) |
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(312) | 696-3101 | ||||
(Registrant's telephone number, including area code) | |||||
N/A | |||||
(Former Name or Former Address, if Changed Since Last Report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class: | Trading Symbol(s) | Name of each exchange on which registered: | ||||||
Common Stock, $0.01 par value per share | CENX | Nasdaq Stock Market LLC |
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(Nasdaq Global Select Market) |
Exhibit Number | Description | |||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
CENTURY ALUMINUM COMPANY |
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Date: | February 21, 2024 | By: | /s/ GERALD C. BIALEK | |||||||||||
Name: | Gerald C. Bialek | |||||||||||||
Title: | Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
$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. |
CENTURY ALUMINUM COMPANY | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three months ended | ||||||||||||||||||||
December 31, | September 30, | December 31, | ||||||||||||||||||
2023 | 2023 | 2022 | ||||||||||||||||||
NET SALES: | ||||||||||||||||||||
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 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended | |||||||||||
December 31, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
NET SALES: | |||||||||||
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 | |||||||||
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
December 31, | |||||||||||
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 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(in millions, except per share amounts) | |||||||||||
(Unaudited) | |||||||||||
December 31, | |||||||||||
2023 | 2022 | ||||||||||
Asset retirement obligations - less current portion | 62.2 | 19.6 | |||||||||
Total noncurrent liabilities | 752.1 | 662.0 | |||||||||
SHAREHOLDERS’ EQUITY: | |||||||||||
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 52,284 issued and outstanding at December 31, 2023; 160,000 issued and 53,854 outstanding at December 31, 2022) |
0.0 | 0.0 | |||||||||
Common stock (one cent par value, 195,000,000 authorized; 99,876,385 issued and 92,689,864 outstanding at December 31, 2023; 99,510,499 issued and 92,323,978 outstanding at December 31, 2022) |
1.0 | 1.0 | |||||||||
Additional paid-in capital | 2,542.9 | 2,539.6 | |||||||||
Treasury stock, at cost | (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 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended December 31, | |||||||||||
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 Iceland term facility | — | 14.5 | |||||||||
Repayments under Iceland term facility | (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 |
CENTURY ALUMINUM COMPANY | |||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||||
(in millions) | |||||||||||
(Unaudited) | |||||||||||
Twelve months ended December 31, | |||||||||||
2023 | 2022 | ||||||||||
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 | |||||||
SHIPMENTS - PRIMARY ALUMINUM(1) |
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United States | Iceland | 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 |
Three months ended | ||||||||||||||||||||||||||
December 31, 2023 | September 30, 2023 | |||||||||||||||||||||||||
$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 December 31, 2023, this includes earnings allocated to common stockholders increased by $1.6 million net interest expense related to the convertible notes and $0.8 million in share-based compensation related to the equity classified awards. For the three months ended September 30, 2023, there were no earnings allocated due to the loss. |
Three months ended | ||||||||||||||
December 31, 2023 | September 30, 2023 | |||||||||||||
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 | ||||||||||||||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||||||||||||||
$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 | ||||||||||||||||||||||
Santee Cooper settlement | (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 | ||||||||||||||
December 31, 2023 | December 31, 2022 | |||||||||||||
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) | ||||||||||||
Santee Cooper settlement | (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 |