Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q1 2020 Earnings Presentation
20 slides from Century Aluminum's earnings presentation, Apr 30, 2020
Slide 1: Century Aluminum Company 1st Quarter Earnings Call
Century Aluminum Company 1st Quarter Earnings Call April 30, 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 2
Slide 4: Overview
Overview • Strong Q1 financial performance validates cost structure in place before further benefit of recent actions • All plants continue to operate at normal production levels • Sudden demand destruction led to precipitous fall in global metal price • U.S. price further undermined by surging Cana
Slide 5: Pandemic Response/Status
Pandemic Response/Status Health, Safety, and Operations Response Current Status • Myriad policies (inside/outside • 1 confirmed diagnosis/handful of plants) to keep employees quarantines (entire company) healthy • All plants operating at normal • Cancellation/deferral of non- levels and without inte
Slide 6: Pandemic Response/Status: Cost Reduction, Cash Flow, and Liquidity
Pandemic Response/Status Cost Reduction, Cash Flow, and Liquidity Enhancement Response Current Status • Discretionary spending and hiring • Q1 performance provides frozen, salary increases cancelled and strong foundation similar measures • 2H20 plant costs down by • Significant capex reduction; $180
Slide 7: Industry Environment
Industry Environment Financial Oil Volatility / Covid-19 Crisis Brexit Slowdown LT LME Avg … ~$1,900/Mt 1) Source: CRU Group, Century Aluminum Company 6
Slide 8: Summary of Financial Results
Summary of Financial Results ($MM, except per share and tonne amounts) Q419 Q120 Income statement Shipments (tonnes) 202,870 202,905 Net sales $ 436 $ 421 Net income/(loss) (5) (3) Earnings/(loss) per share (0.05) (0.03) Adjusted net income/(loss)1 (9) 1 Adjusted earnings / (loss) per share1 (0.09)
Slide 9: Financial Results: Q419 vs. Q120 Adjusted EBITDA
Financial Results Q419 vs. Q120 Adjusted EBITDA ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: Financial Results: Q419 vs. Q120 Cash Flow
Financial Results Q419 vs. Q120 Cash Flow ($MM) 1) See reconciliation to comparable GAAP financial measure in appendix 9
Slide 11: Updated 2020 Items – Price Assumptions
Updated 2020 Items – Price Assumptions 2H 2020 Key Assumption Units Price Midwest Premium $/T $ 220 European Duty Paid Premium $/T 100 Alumina Price Index $/T 225 MISO Indiana Hub $/MWh 22.00 NYMEX Henry Hub Nat Gas $/MMBtu 1.90 1 Nord Pool System Price $/MWh 13.75 Coke $/T 240 Pitch2 $/T 790 1) Ass
Slide 12: Updated 2020 Items: Shipments and Plant Costs
Updated 2020 Items 2H 2020 Hawesville – 100k tonnes Sebree – 105k tonnes Shipments1 Mt. Holly – 60k tonnes Grundartangi – 160k tonnes U.S. - $1,840 - $1,890/T Plant Cash Costs2 Iceland - $1,425 - $1,475/T U.S. - $1,555 - $1,605/T Net Plant Cash Costs2,3 Iceland - $1,335 - $1,385/T 1) Assumes ~180K o
Slide 13: Updated 2020 Items: SG&A, Interest, Capex
Updated 2020 Items 2H 2020 Book ~$20MM SG&A Cash ~$16MM Book ~$13MM Interest Cash ~$12MM Hawesville term ~$10MM loan paydown $5MM - $10MM Capex All investment capex deferred Cash flow ~$1,550 breakeven1 1) Consolidated cash flow break-even is direct LME comparative, net of all premiums and based on
Slide 14: Appendix
Appendix
Slide 15: 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 16: Adjusted Net Income (Loss) Non-GAAP Reconciliation
Adjusted Net Income (Loss) Non-GAAP Reconciliation Q419 Q120 $MM EPS $MM EPS Net income (loss) as reported $ (4.8) $ (0.05) $ (2.7) $ (0.03) Lower of cost or NRV inventory adjustment, net of tax (3.3) (0.04) 12.1 0.13 Unrealized (gain) loss on forward and derivative contracts, net of tax 0.7 0.01 (8
Slide 17: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q419 Q120 Net income (loss) as reported $ (4.8) $ (2.7) Interest expense 5.7 6.0 Interest expense - term loan 0.8 0.7 Interest income (0.2) (0.1) Net (gain) loss on forward and derivative contracts (1.3) (3.8) Other (income) expense - net (0.5) (1.7) Inc
Slide 18: Updated 2020 Items Net Plant Cash Cost Reconciliation
Updated 2020 Items Net Plant Cash Cost Reconciliation 2H 2020 ($/T) U.S. Iceland Plant operating cash costs ($/T) $ 1,840 $ 1,890 $ 1,425 $ 1,475 Regional premium (240) (240) (100) (100) Other1 (45) (45) 10 10 Net plant operating cash costs ($/T) $ 1,555 $ 1,605 $ 1,335 $ 1,385 1) Product premium on
Slide 19: Updated 2020 Sensitivities
Updated 2020 Sensitivities 2H 2020 ($MM) Variance 2H20 EBITDA7 LME +/- $100/T $ 32 MWP1 +/- $22.04/T 5 EDPP2 +/- $22.04/T 4 Alumina Price Index +/- $10/T 2 MISO Indiana Hub3 +/- $1/MWh 3 NYMEX Henry Hub Nat Gas4 +/- $0.10/MMBtu 0.5 Nord Pool5 +/- $1/MWh 1 Coke6 +/- $10/T 2 Pitch6 +/- $10/T 0.4 1) Mi
Slide 20: 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 19
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