Century Aluminum Company · NASDAQ:CENX
Century Aluminum — Q3 2018 Earnings Presentation
15 slides from Century Aluminum's earnings presentation, Oct 25, 2018
Slide 1: Century Aluminum 3rd Quarter Earnings Call
Century Aluminum 3rd Quarter Earnings Call October 25, 2018
Slide 2: Cautionary Statement
Cautionary Statement This presentation and comments made by Century Aluminum 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 21E of the S
Slide 3: Speakers
Speakers • Mike Bless, President and Chief Executive Officer • Craig Conti, Executive Vice Present and Chief Financial Officer • Shelly Harrison, Senior Vice President, Finance and Treasurer • Peter Trpkovski, Manager, Finance 2
Slide 4: Overview
Overview • Industry fundamentals generally strong • Hawesville restart on time and budget • Sebree potline restarted ahead of schedule • Mt. Holly power contract — two year extension signed • Company set up for strong 2019 3
Slide 5: Industry Environment
Industry Environment Q4 2018 Supply, Demand, Balance LME, MWP, and EDPP 18,000 16,517 16,593 3,200 LME LME + MWP LME + EDPP 16,000 14,000 Primary Aluminum (kt) 12,000 2,800 LME Prices ($/T) 9,447 9,142 10,000 7,070 7,451 8,000 2,400 6,000 4,000 2,000 2,000 305 (380) (75) 0 -2,000 Supply Demand Balan
Slide 6: Q3 2018 vs. Q2 2018 Operations
Q3 2018 vs. Q2 2018 Operations Hawesville Sebree Mt. Holly Grundartangi Safety Production(1) 18% -6% -1% 0% KPIs Flat Flat Conversion cost(2) 1% 1% 4% -8% 1) Production on a tonnes per day basis 2) Excludes alumina and casting; Sebree excludes restart costs 5
Slide 7: Q3 2018 Summary Results
Q3 2018 Summary Results ($MM, except per share and tonne amounts) Q218 Q318 Income statement Shipments (tonnes) 180,220 182,926 Net sales $ 470 $ 482 Net income/(loss) 19 (20) Diluted earnings/(loss) per share 0.20 (0.23) (1) Adjusted net income 31 2 (1) Adjusted earnings per share 0.32 0.02 (1) Adj
Slide 8: Q3 2018 Adjusted EBITDA
Q3 2018 Adjusted EBITDA(1) $70 8 $60 54 3 $50 $40 2 29 $MM $30 1 1 $20 35 $10 $0 6/30/2018 LME / Volume / Alumina Power Other Other, net 9/30/2018 Regional Sales Mix operating Premiums costs 1) See reconciliation to comparable GAAP financial measure in appendix 7
Slide 9: Q3 2018 Cash Flow
Q3 2018 Cash Flow $170 29 $150 6 $130 124 14 31 $110 $MM 17 1 $90 73 $70 39 $50 6/30/2018 Adjusted Capex Hawesville Sebree Taxes Revolver Working 9/30/2018 EBITDA(1) restart equipment Capital/Other failure 1) See reconciliation to comparable GAAP financial measure in appendix 8
Slide 10: Appendix
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Slide 11: Non-GAAP Financial Measures
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 periods on a
Slide 12: Adjusted Net Income/(Loss) Non-GAAP Reconciliation
Adjusted Net Income/(Loss) Non-GAAP Reconciliation Q218 Q318 $MM EPS $MM EPS Net income/(loss) as reported $ 19.4 $ 0.20 $(20.3) $ (0.23) Lower of cost or NRV inventory adjustment - - 9.2 0.10 Helguvik gains - - (4.5) (0.05) Sebree equipment failure 8.5 0.09 16.9 0.19 Sebree signing bonus - - 1.7 0.
Slide 13: Adjusted EBITDA Non-GAAP Reconciliation
Adjusted EBITDA Non-GAAP Reconciliation ($MM) Q218 Q318 Net income/(loss) as reported $ 19.4 $ (20.3) Interest expense 5.6 5.6 Interest income (0.5) (0.4) Net gain on forward and derivative contracts (1.2) (0.8) Other income - net (2.1) (0.7) Income tax expense 2.3 1.7 Equity in earnings of joint ve
Slide 14: 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 15: CenturyAuminum
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