Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q2 2020 Earnings Presentation
15 slides from Century Aluminum's earnings presentation, Aug 5, 2020
Slide 1: Century Aluminum Company 2nd Quarter Earnings Call
Century Aluminum Company 2nd Quarter Earnings Call August 5, 2020
Slide 2: Cautionary Statement
Cautionary Statement This presentation and statements made by Century Aluminum Company management on the quarterly conference call contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21
Slide 3: Speakers
Speakers • Mike Bless – President and Chief Executive Officer • Craig Conti – Executive Vice President and Chief Financial Officer • Peter Trpkovski – Director of Financial Planning and Analysis • Shelly Harrison – Senior Vice President, Finance and Treasurer 2
Slide 4: Overview
Overview • Operations continue without disruption from pandemic • Financial results in line with expectations; strong liquidity and cash flow • Refinanced $250MM senior secured notes, extending maturity to 2025 • Industry conditions improving • Re-imposition of Section 232 tariff on surging Canadian
Slide 5: Industry Environment
Industry Environment LME Aluminum Pricing Aluminum Supply and Demand Balance Key Raw Materials 1) Source: CRU Group, Century Aluminum Company 4
Slide 6: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q120 Q220 Income statement Shipments (tonnes) 202,905 210,309 Net sales $ 421 $ 402 Net income/(loss) (3) (27) Earnings/(loss) per share (0.03) (0.30) 1 Adjusted net income/(loss) 1 (18) 1 Adjusted earnings / (loss) per share 0.0
Slide 7: Financial Results: Q1 vs. Q2 Adjusted EBITDA
Financial Results Q120 vs. Q220 Adjusted EBITDA ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 6
Slide 8: Financial Results: Q1 vs. Q2 Cash Flow
Financial Results Q120 vs. Q220 Cash Flow ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 7
Slide 9: Earnings Benefit Lags Market Improvement
Earnings Benefit Lags Market Improvement Q220 Adj EBITDA impact from spot pricing ($MM) $19 $24 Spot market prices will begin to benefit Century reported $5 earnings with ~3 month lag … beginning Q4 2020 $0 Q2 Adj EBITDA Spot LME & MWP Illustrative Future Benefit Quarter @ Spot LME and MWP1 Realized
Slide 10: Appendix
Appendix
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income / (loss) and adjusted earnings / (loss) per share and net debt 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
Slide 12: Adjusted Net Income (Loss) Non-GAAP Reconciliation
Adjusted Net Income (Loss) Non-GAAP Reconciliation Q120 Q220 $MM EPS $MM EPS Net income (loss) as reported $ (2.7) $ (0.03) $ (26.9) $ (0.30) Lower of cost or NRV inventory adjustment, net of tax 12.1 0.13 6.4 0.07 Unrealized (gain) loss on forward and derivative contracts, net of tax (8.3) (0.09) 2
Slide 13: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q120 Q220 Net income (loss) as reported $ (2.7) $ (26.9) Interest expense 6.0 5.9 Interest expense - term loan 0.7 0.5 Interest income (0.1) (0.4) Net (gain) loss on forward and derivative contracts (3.8) (3.7) Other (income) expense - net (1.7) (1.3) In
Slide 14: 2H 2020 Sensitivities
2H 2020 Sensitivities ($MM) Variance 2H20 EBITDA7 LME +/- $100/MT $ 32 MWP1 +/- $22.04/MT 5 EDPP2 +/- $22.04/MT 4 Alumina Price Index +/- $10/MT 2 MISO Indiana Hub3 +/- $1/MWh 3 NYMEX Henry Hub Nat Gas4 +/- $0.10/MMBtu 0.5 Nord Pool5 +/- $1/MWh 1 Coke6 +/- $10/MT 2 Pitch6 +/- $10/MT 0.4 1) Midwest P
Slide 15: For Additional Information
For Additional Information Peter Trpkovski peter.trpkovski@centuryaluminum.com 312-696-3112 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 14
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