Noranda Aluminum — Q3 2015 Earnings Presentation
10 slides from Noranda Aluminum's earnings presentation, Nov 9, 2015
Slide 1: 3rd Quarter 2015 Earnings Conference Call
3rd Quarter 2015 Earnings Conference Call Noranda Aluminum Holding Corp November 9, 2015 5:00 PM Eastern Exhibit 99.2
Slide 2: Forward-Looking Statements
[…] The presentation and comments made by Noranda’s management on the quarterly conference call contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. including but not limited to: expected effects of our efforts to achieve sustainable operat
Slide 3: Third Quarter 2015 Summary
• Cash and cash equivalents totaled $8.9 million and total available liquidity was $112.7 million as of September 30, 2015 • Excluding special items, loss per share was $3.87 loss versus a $0.32 loss per share in third quarter 2014 • Average realized Midwest Transaction Price was $0.79 per pound, co
Slide 4: Stabilize Operations
Stabilize Operations 4 Market conditions, liquidity factors will drive metal production decisions regarding capacity. Market conditions, and equipment lead-times will drive the timeline for restoring billet production. Key facts regarding smelter: • We have reached a steady-state for the majority of
Slide 5: Broad Portfolio of Productivity Projects
Broad Portfolio of Productivity Projects 5 We have either realized or begun to realize savings on 55% of our $85 million three year productivity target, and have made substantial progress on another 18% of that target. Here, part of the new $12 million midstream unloading facility is delivered to Gr
Slide 6: Capital Structure
Capital structure 6 Total available liquidity at September 30, 2015 was $112.7million, comprising cash and cash equivalents plus ABL borrowing capacity. ABL Fixed-Charge Coverage Ratio above 1x at quarter-end. • $265 million asset-based revolving credit facility o No ABL borrowings outstanding at en
Slide 7: Bridge of Segment Profit to Net Income, Ex. Special Items
(amounts in millions) Q3 2014 Q2 2015 Q3 2015 Segment profit (loss) $ 36.6 $ 19.4 $ (26.4) LIFO/LCM (2.2) (5.9) 0.8 Other recurring non-cash items (2.8) (6.0) (4.4) EBITDA, excluding special items 31.6 7.5 30.0 Depreciation & amortization (21.7) (23.5) (23.9) Interest expense, net (12.6) (13.2) (13.
Slide 8: Segment Profit Summary
Quarterly Results Last Four Quarters (amounts in millions except per pound data) Q3-14 Q2-15 Q3-15 Q3-14 Q3-15 Integrated Upstream Business: Primary shipments (lbs) 140.8 128.3 134.0 576.4 524.8 Integrated Upstream margin/lb: Midwest Transaction Price/lb $ 1.08 $ 0.95 $ 0.79 0.98 0.98 Integrated net
Slide 9: Quarterly Results Last Four Quarters: Cash Flow
(1) Includes impact of taxable cancellation of debt income from open market debt repurchases in 2009, which is being recognized as taxable income from 2014 through 2019. The recognition of this taxable income has an annual tax impact of approximately $14.7 million. (2) Amount represents the differen
Slide 10: Key Takeaways
Key Takeaways 10 • Aluminum prices are at their lowest levels since the global financial crisis. • We hold a positive outlook for aluminum fundamentals beyond the near term. • We are not counting on a meaningful price recovery in the immediate term. The current aluminum price environment presents a
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