Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q2 2019 Earnings Presentation
17 slides from Century Aluminum's earnings presentation, Aug 1, 2019
Slide 1: Century Aluminum 2nd Quarter Earnings Call
Century Aluminum 2nd Quarter Earnings Call August 1, 2019
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 • Shelly Harrison, Senior Vice President, Finance and Treasurer 2
Slide 4: Overview
Overview • Market conditions remain dynamic • Alumina price returns to historical fair value range • Operations stable and strategic initiatives on track • Sale of interest in China anode plant • Completion of rebuild / upgrade of Netherlands anode plant 3
Slide 5: Industry Environment
Industry Environment Global Inventory Days of Primary Aluminum Consumption LME and Regional Premiums FY 2019 Supply and Demand Balance Alumina and Coke Source: CRU Group, Century Aluminum Company 4
Slide 6: Q2 2019 vs. Q1 2019 Operations
Q2 2019 vs. Q1 2019 Operations Hawesville Sebree Mt. Holly Grundartangi Safety Flat Production(1) 0% -1% 0% 0% KPIs Flat Flat Flat Flat Controllable cost(2) 6% 2% 1% -11% 1) Production on a tonnes per day basis 2) Excludes raw materials and casting 5
Slide 7: Q2 2019 Summary Results
Q2 2019 Summary Results ($MM, except per share and tonne amounts) Q119 Q219 Income statement Shipments (tonnes) 206,451 203,380 Net sales $ 490 $ 473 Net income/(loss) (35) (21) Earnings/(loss) per share (0.39) (0.23) (1) Adjusted net income/(loss) (67) (16) (1) Adjusted earnings / (loss) per share
Slide 8: Q2 2019 Adjusted EBITDA
Q2 2019 Adjusted EBITDA(1) 1) See reconciliation to comparable GAAP financial measure in appendix 7
Slide 9: Q2 2019 Cash Flow
Q2 2019 Cash Flow 1) See reconciliation to comparable GAAP financial measure in appendix 2) Includes Hawesville Restart of $2MM 8
Slide 10: Earnings Benefit Lags Alumina Market Improvement
Earnings Benefit Lags Alumina Market Improvement $MM $29 $41 Spot alumina prices will begin to benefit Century reported $12 earnings with ~3 month lag … beginning Q4 2019 $0 Q2 Adj EBITDA Spot Alumina Illustrative Future Benefit Quarter @ Spot Alumina(1) Realized Alumina Spot Alumina Price: Price: $
Slide 11: Appendix
Appendix
Slide 12: 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 13: Adjusted Net Income/(Loss) Non-GAAP Reconciliation
Adjusted Net Income/(Loss) Non-GAAP Reconciliation Q119 Q219 $MM EPS $MM EPS Net income (loss) as reported $ (34.6) $ (0.39) $ (20.7) $ (0.23) Lower of cost or NRV inventory adjustment, net of tax (35.0) (0.40) 9.0 0.10 Unrealized (gain) loss on derivative instruments 5.6 0.06 (6.2) (0.07) Loss on s
Slide 14: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q119 Q219 Net income (loss) as reported $ (34.6) $ (20.7) Interest expense 5.8 5.8 Interest expense - term loan - 0.6 Interest income (0.2) (0.2) Net (gain) loss on forward and derivative contracts 5.7 (6.1) Other (income) expense - net (1.1) 1.7 Income
Slide 15: Sensitivities
Sensitivities (6) ($MM) Variance Annual EBITDA LME +/- $100/T $ 76 MWP(1) +/- $0.01/lb 7 (2) EDPP +/- $22.04/T 7 (3) MISO Indiana Hub +/- $1/MWh 6 NYMEX Henry Hub Nat Gas(4) +/- $0.10/MMBtu 1 Alumina Price Index +/- $10/T 14 Coke (5) +/- $10/T 3 Pitch(5) +/- $10/T 1 1) Midwest Premium for all U.S. o
Slide 16: For Additional Information
For Additional Information Shelly Harrison shelly.harrison@centuryaluminum.com 312-696-3140 (Office) Century Aluminum Company One South Wacker Dr, Suite 1000 Chicago, IL 60606 312-696-3102 (Fax) www.centuryaluminum.com 15
Slide 17: Century Aluminum
CenturyAuminu
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