Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q1 2018 Earnings Presentation
14 slides from Century Aluminum's earnings presentation, May 3, 2018
Slide 1: 1st Quarter Earnings Call
1st Quarter Earnings Call May 3, 2018
Slide 2: Cautionary Statement
Cautionary Statement This press release 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 2
Slide 3: Speakers
Speakers • Mike Bless, President and Chief Executive Officer • Shelly Harrison, Senior Vice President, Finance and Treasurer • Peter Trpkovski, Manager, Finance 3
Slide 4: Overview
Overview • Operations stable — favorable production metrics • Financial results driven by commodities price fluctuations • Section 232 tariffs in place since March • Hawesville capacity restart on track • Mt. Holly power negotiations ongoing 4
Slide 5: Industry Environment
Industry Environment Q1 2018 Supply, Demand, Balance LME, MWP, and EDPP 18,000 LME LME + MWP LME + EDPP 15,604 15,582 16,000 3,200 14,000 Primary Aluminum (kt) 12,000 2,800 LME Prices ($/T) 10,000 8,749 8,195 6,854 7,387 8,000 6,000 2,400 4,000 2,000 554 2,000 (533) 22 0 -2,000 Supply Demand Balance
Slide 6: Q1 2018 vs. Q4 2017 Operations
Q1 2018 vs. Q4 2017 Operations Hawesville Sebree Mt. Holly Grundartangi Safety Flat Production (1) -3% 0% 0% 0% KPIs Flat Flat Flat Flat Conversion cost (2) 0% 1% 4% 4% Notes (1) Production on a tonnes per day basis (2) Excludes alumina and casting; adjusted for power and carbon 6
Slide 7: Q1 2018 Summary Results
Q1 2018 Summary Results ($MM, except per share and tonne amounts) Q417 Q118 Income statement Shipments (tonnes) 189,000 187,238 Net sales $ 434 $ 454 Net income/(loss) 36 (0) Diluted earnings/(loss) per share 0.37 (0.00) (1) Adjusted net income/(loss) 25 (3) (1) Adjusted earnings/(loss) per share 0.
Slide 8: Q1 2018 Adjusted EBITDA
Q1 2018 Adjusted EBITDA (1) $90 18 2 $80 $70 60 $60 $50 $40 $MM $30 47 6 1 22 $20 6 $10 $0 12/31/2017 LME / Regional Volume / Sales Alumina and Power Other Operating Other, Net 3/31/2018 Premiums Mix Other Raw Costs Materials Note (1) See reconciliation to comparable GAAP financial measure in append
Slide 9: Q1 2018 Cash Flow
Q1 2018 Cash Flow $200 $190 22 3 $180 $170 167 $160 $150 $MM $140 131 $130 55 $120 $110 $100 12/31/2017 Adjusted EBITDA(1) Capex Working Capital/Other 3/31/2018 Note (1) See reconciliation to comparable GAAP financial measure in appendix 9
Slide 10: Appendix: Non-GAAP Financial Measures
Appendix Non-GAAP Financial Measures Adjusted EBITDA, adjusted net income and adjusted earnings per share 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 per
Slide 11: Adjusted Net Income Non-GAAP Reconciliation
Adjusted Net Income Non-GAAP Reconciliation Q417 Q118 $MM EPS $MM EPS Net income/(loss) as reported $ 35.8 $ 0.37 $ (0.3) $ (0.00) Forward and derivative contracts (6.8) (0.07) - - Helguvik gains (7.3) (0.08) - - Lower of cost or NRV inventory adjustment 3.1 0.04 (3.2) (0.03) Adjusted net income/(lo
Slide 12: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q417 Q118 Net income/(loss) as reported $ 35.8 $ (0.3) Interest expense 5.6 5.5 Interest income (0.5) (0.5) Net gain on forward and derivative contracts (0.5) (0.7) Other expense - net 0.1 1.1 Income tax expense/(benefit) 3.1 (1.0) Equity in earnings of
Slide 13: For Additional Information
For Additional Information Peter Trpkovski Finance Manager 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 13
Slide 14: Century Aluminum
CenturyAuminum
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