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8-K - FORM 8-K - KAISER ALUMINUM CORP | a59923e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE |
Kaiser Aluminum Corporation Reports
Second Quarter and Year-to-Date 2011 Financial Results
Second Quarter and Year-to-Date 2011 Financial Results
| Value Added Revenue of $160 Million on Improving Demand | ||
| Adjusted EBITDA of $30 Million; 19% of Value Added Revenue | ||
| Strong Order Book for Aerospace Applications |
FOOTHILL RANCH, Calif., July 27, 2011 Kaiser Aluminum Corporation (NASDAQ:KALU) today
reported net income of $5 million or $0.24 earnings per diluted share for the second quarter 2011
compared sequentially to $11 million, or $0.59 per diluted share for the first quarter 2011 and $0
million or $0.01 earnings per diluted share for the prior year second quarter. Excluding the impact
of non-run-rate items, adjusted net income and earnings per diluted share were $12 million and
$0.63 for the second quarter 2011, a sequential improvement from adjusted net income and earnings
per diluted share of $8 million and $0.42 in the first quarter of 2011 and slightly lower than $13
million and $0.68 in the prior year quarter.
Value added revenue of $160 million for the second quarter 2011 was comparable to the first quarter
2011 and increased $12 million or 8% from the prior year second quarter reflecting the favorable
impact of recent acquisitions and improving demand. Adjusted consolidated EBITDA increased
sequentially to $30 million or 19% of value added revenue compared to $23 million or 15%
of value added revenue in the first quarter reflecting a sequential improvement in manufacturing
efficiencies and improved pass through of metal costs on certain products. Adjusted consolidated
EBITDA and margin for the second quarter 2011 was comparable to the second quarter 2010.
Summary
We are pleased with the improvement and progress we made during the quarter. Solid demand across
our end market applications combined with the benefit of our recent acquisitions continued to drive
higher sales and higher adjusted EBITDA, said Jack A. Hockema, President, CEO and Chairman. In
addition, our adjusted EBITDA margin as a percentage of value added revenue improved as we were
able to recapture a significant portion of the margin squeeze that arose from sharply rising
aluminum and alloying costs on spot sales of our high value added products as we discussed in our
prior quarter earnings release.
As we look to the future we are very optimistic about our prospects for growth. We have a strong
aerospace order book and are well positioned to meet the growing demand with previous investments
in plate capacity and with the recently
announced expansion of our Kaiser Alexco aerospace extrusion facility. In addition, the ramp-up of
our Kalamazoo, Michigan extrusion facility continues to gain momentum, and we expect that EBITDA
margins will continue to improve as we realize price increases and improving cost benefits from
Kalamazoo, concluded Mr. Hockema.
Second Quarter 2011 Consolidated Results
(Non GAAP, Unaudited)*
($mm, except shipments, realized price and per share amounts)
(Non GAAP, Unaudited)*
($mm, except shipments, realized price and per share amounts)
Quarter | First Half | |||||||||||||||||||
2Q11 | 1Q11 | 2Q10 | 2011 | 2010 | ||||||||||||||||
Net Sales |
$ | 339 | $ | 323 | $ | 282 | $ | 661 | $ | 550 | ||||||||||
Shipments (mm lbs) |
145 | 144 | 133 | 289 | 261 | |||||||||||||||
Value Added Revenue1 |
$ | 160 | $ | 157 | $ | 148 | $ | 316 | $ | 285 | ||||||||||
Realized Price per Pound ($/lb) |
||||||||||||||||||||
Contained Metal |
$ | 1.23 | $ | 1.15 | $ | 1.02 | 1.20 | 1.02 | ||||||||||||
Value Added Revenue |
$ | 1.10 | $ | 1.09 | $ | 1.11 | 1.09 | 1.09 | ||||||||||||
Total |
$ | 2.33 | 2.24 | 2.13 | 2.29 | 2.11 | ||||||||||||||
Adjusted EBITDA2 |
$ | 30 | $ | 23 | $ | 30 | 53 | 50 | ||||||||||||
Depreciation and Amortization |
$ | (6 | ) | $ | (6 | ) | $ | (5 | ) | $ | (13 | ) | $ | (9 | ) | |||||
Operating Income before NRR3 |
$ | 24 | $ | 17 | $ | 26 | $ | 41 | $ | 41 | ||||||||||
Non-Run-Rate Items |
$ | (9 | ) | $ | 4 | $ | (22 | ) | $ | (5 | ) | $ | (22 | ) | ||||||
Reported Operating Income4 |
$ | 15 | $ | 21 | $ | 4 | $ | 36 | $ | 19 | ||||||||||
Net Income |
$ | 5 | $ | 11 | $ | | $ | 16 | $ | 9 | ||||||||||
EPS (diluted, GAAP) |
$ | 0.24 | $ | 0.59 | $ | 0.01 | $ | 0.83 | $ | 0.45 | ||||||||||
Adjusted EPS5 |
$ | 0.63 | $ | 0.42 | $ | 0.68 | $ | 1.05 | $ | 1.13 |
1 | Value added revenue = Fabricated Products net sales less hedged cost of alloyed metal | |
2 | Operating Income (before non-run-rate items) plus depreciation and amortization | |
3 | NRR = Non-run-rate | |
4 | Totals may not sum due to rounding | |
5 | Estimated EPS excluding total NRR items (net of tax) | |
* | Please refer to GAAP financial statements |
Consolidated operating income was $15 million in the second quarter 2011, down $6 million from the
first quarter 2011 and up $11 million compared to the prior year quarter. Excluding the impact of
non-run-rate items, adjusted consolidated operating income was $24 million for the second quarter
2011, a sequential improvement from $17 million in the first quarter on favorable manufacturing
efficiencies and improved pass through of metal costs on certain products. The second quarter
adjusted operating income of $24 million was down slightly compared to $26 million in the second
quarter 2010 as the impact of higher value added revenue, including the benefit of acquisitions,
was more than offset by higher depreciation, higher energy related and currency costs, and an
increase in operating costs to support higher demand levels and market growth.
Six month results reflect year-over-year top-line improvement, with total value added revenue
increasing approximately 11% compared to the first half of 2010, reflecting the benefit from
stronger demand and the Alexco and Nichols Wire acquisitions, partially offset by the margin
squeeze from higher metal and alloying costs. While consolidated operating
income of $36 million was approximately $17 million higher than the prior-year six month period,
excluding the impact of non-run-rate items, adjusted consolidated operating income of $41 million
for the year-to-date 2011 period was comparable to the prior-year period as higher depreciation,
energy and currency costs, and an increase in operating costs to support higher demand largely
offset the impact of stronger value added revenue during the first half of 2011.
Adjusted consolidated EBITDA for the six months ended June 30, 2011 was $53 million, a 6% increase
over the comparable period of 2010, on higher value added revenue as previously noted, partially
offset by higher costs. Adjusted consolidated EBITDA as a percentage of value added revenue of 17%
for the six months ended June 30, 2011 was comparable to the average EBITDA margin of the
prior-year period.
Outlook
We remain very optimistic about the long-term growth prospects for aerospace and high strength
applications driven by increasing build rates, larger airframes, and monolithic design. We have
continued to gain visibility and clarification of the airframe manufacturers position regarding
plate inventory, and we have seen a shift in focus from destocking initiatives to an emphasis on
supply chain readiness as production levels for all aircraft platforms ramp up in 2012 and beyond,
said Mr. Hockema. We are well positioned to meet this growing demand. We have a very strong order
book for aerospace applications in the second half of 2011 and expect this strength to continue in
2012.
Our general engineering and automotive applications continue to experience slowly improving
underlying demand, and growth in new aluminum extrusion automotive programs. We expect that normal
seasonal weakness for these applications will negatively impact shipments in the second half of
2011.
Overall, we expect that value added revenue in the second half of 2011 will be similar to the
first half, as the strong order book for aerospace applications is expected to offset the typical
seasonal weakness we experience in the second half of the year. We also expect that our adjusted
EBITDA margin as a percentage of value added revenue will benefit from improved pricing to recover
higher contained metal costs and from improving operating efficiencies at Kalamazoo and other
facilities. These benefits will be partially offset by higher major maintenance expenses in the
second half of 2011, concluded Mr. Hockema.
Conference Call
Kaiser Aluminum Corporation will host a conference call on July 28, 2011, at 10:00am (Pacific
Time); 12:00pm (Central Time); 1:00pm (Eastern Time), to discuss second quarter 2011 results. To
participate, the conference call can be directly accessed from the U.S. and Canada at (888)
820-9418, and accessed internationally at (913) 312-0822. A link to the simultaneous webcast can be
accessed on the Companys website at http://investors.kaiseraluminum.com/events.cfm. A copy of a
presentation will be available for download prior to the call and an audio archive will be
available on the Companys website following the call.
Company Description
Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a leading producer of
semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered
solutions for aerospace and high-strength, general engineering, and custom automotive and
industrial applications. The Companys North American facilities produce value-added sheet, plate,
extrusions, rod, bar, tube and wire products, adhering to traditions of quality, innovation and
service that have been key components of our culture since the Company was founded in 1946. The
Companys stock is included in the Russell 2000® index and the S&P SmallCap 600® index.
Available Information
For more information, please visit the Companys website at www.kaiseraluminum.com. The
website includes a section for investor relations under which the Company provides notifications of
news or announcements regarding its financial performance, including Securities and Exchange
Commission (SEC) filings, investor events, and earnings and other press releases. In addition, all
Company filings submitted to the SEC are available through a link to the section of the SECs
website at www.sec.gov which includes: Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q,
Current Reports on Form 8-K and Proxy Statements for the Companys annual stockholders meetings
and other information statements as filed with the SEC. In addition, the Company provides a webcast
of its quarterly earnings calls and certain events in which management participates or hosts with
members of the investment community.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A non-GAAP financial measure
is defined as a numerical measure of a companys financial performance that excludes or includes
amounts so as to be different than the most directly comparable measure calculated and presented in
accordance with GAAP in the statements of income, balance sheets or statements of cash flow of the
company. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of
non-GAAP financial measures to the most directly comparable financial measure in the accompanying
tables.
The non-GAAP financial measures used within this earnings release are operating income, EBITDA, net
income and earnings per diluted share, excluding non-run-rate items. These measures are presented
because management uses this information to monitor and evaluate financial results and trends and
believes this information to also be useful for investors.
###
This press release contains statements based on managements current expectations, estimates and
projections that constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 involving known and unknown risks and uncertainties that
may cause actual results, performance or achievements of the Company to be materially different
from those expressed or implied. Kaiser Aluminum cautions that such forward-looking statements are
not guarantees of future performance or events and involve significant risks and uncertainties and
actual events may vary materially from those expressed or implied in the forward-looking statements
as a result of various factors. These factors include: (a) material adverse changes in economic or
industry conditions generally, including global financial markets; (b) our inability to achieve the
level of growth or other benefits anticipated by management, including those anticipated from our
acquisitions and other strategic investments and the integration of acquired businesses; (c)
increases in our costs, including the cost of energy, raw materials and freight costs, which
we are unable to pass through to our customers; (d) pressure to reduce defense spending and
demand for the Companys products used in defense applications as the U.S. and other governments
are faced with competing national priorities; (e) changes in the markets served by the Company,
including aerospace, defense, general engineering, automotive, distribution and other markets,
including changes impacting the volume, price or mix of products sold by the Company and the
Companys ability to flex production consistent with changing demand levels; (f) the Companys
ability to lower energy costs, realize manufacturing efficiencies and complete its expansion and
organic growth projects, equipment and facility upgrades to improve manufacturing and cost
efficiencies and product expansions as planned and by targeted completion dates; (g) unfavorable
changes in laws or regulations that impact our operations and results; (h) the outcome of
contingencies, including legal proceedings, government investigations and environmental
remediation; (i) changes in accounting that affect the Companys reported earnings, operating
income or results; (j) the completion of the review of the financial statements as of and for the
quarter and six month period ended June 30, 2011; and (k) other risk factors summarized in the
Companys reports filed with the Securities and Exchange Commission, including the Companys Form
10-K for the year ended December 31, 2010. As more fully described in these reports, non-run-rate
items are items that, while they may occur from period to period, are particularly material to
results, impact costs primarily as a result of external market factors and may not occur in future
periods if the same level of underlying performance were to occur. All information in this release
is as of the date of the release. The Company undertakes no duty to update any forward-looking
statement to conform the statement to actual results or changes in the Companys expectations.
Investor Relations Contact:
Melinda C. Ellsworth
Kaiser Aluminum
(949) 614-1757
Melinda C. Ellsworth
Kaiser Aluminum
(949) 614-1757
Public Relations Contact:
Dave Quast
Financial Dynamics
(646) 421-5341
Dave Quast
Financial Dynamics
(646) 421-5341
KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES
STATEMENTS OF CONSOLIDATED INCOME(1)
(Unaudited)
(In millions of dollars except share and per share amounts)
STATEMENTS OF CONSOLIDATED INCOME(1)
(Unaudited)
(In millions of dollars except share and per share amounts)
STATEMENTS OF CONSOLIDATED INCOME
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 338.8 | $ | 282.4 | $ | 661.4 | $ | 549.9 | ||||||||
Costs and expenses: |
||||||||||||||||
Cost of products sold: |
||||||||||||||||
Cost of products sold, excluding
depreciation, amortization and
other items |
300.0 | 255.9 | 580.9 | 487.9 | ||||||||||||
Restructuring costs and other benefits |
| 0.1 | | (0.5 | ) | |||||||||||
Depreciation and amortization |
6.4 | 5.0 | 12.7 | 9.0 | ||||||||||||
Selling, administrative, research and development, and general |
17.3 | 15.4 | 32.2 | 32.7 | ||||||||||||
Other operating (benefits) charges, net |
(0.3 | ) | 2.0 | (0.3 | ) | 2.0 | ||||||||||
Total costs and expenses |
323.4 | 278.4 | 625.5 | 531.1 | ||||||||||||
Operating income |
15.4 | 4.0 | 35.9 | 18.8 | ||||||||||||
Other (expense) income: |
||||||||||||||||
Interest expense |
(4.4 | ) | (3.5 | ) | (8.9 | ) | (3.5 | ) | ||||||||
Other (expense) income, net |
(3.4 | ) | 0.7 | (1.7 | ) | 0.9 | ||||||||||
Income before income taxes |
7.6 | 1.2 | 25.3 | 16.2 | ||||||||||||
Income tax provision |
(3.1 | ) | (1.1 | ) | (9.5 | ) | (7.3 | ) | ||||||||
Net income |
$ | 4.5 | $ | 0.1 | $ | 15.8 | $ | 8.9 | ||||||||
Earnings per share, Basic2 |
||||||||||||||||
Net income per share |
$ | 0.24 | $ | $0.01 | $ | 0.83 | $ | 0.45 | ||||||||
Earnings per share, Diluted2 |
||||||||||||||||
Net income per share |
$ | 0.24 | $ | $0.01 | $ | 0.83 | $ | 0.45 | ||||||||
Weighted-average number of common shares outstanding (000): |
||||||||||||||||
Basic |
18,984 | 18,917 | 18,962 | 19,710 | ||||||||||||
Diluted |
18,984 | 18,917 | 18,962 | 19,710 | ||||||||||||
1 | Please refer to the Companys Form 10-Q for the quarter ended June 30, 2011, for additional detail regarding the items in the table. | |
2 | All of the Companys unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are treated as participating securities and affect the computation of net income available to common stockholders and earnings per share pursuant to the two-class method. |
KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES
SELECTED OPERATIONAL AND FINANCIAL INFORMATION (1)
(Unaudited)
SELECTED OPERATIONAL AND FINANCIAL INFORMATION (1)
(Unaudited)
(In millions of dollars except shipments and average realized third-party sales price)
Quarter Ended | Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Shipments (mm lbs): |
||||||||||||||||
Fabricated Products |
145.2 | 132.7 | 289.3 | 260.6 | ||||||||||||
All Other2 |
| | | 0.4 | ||||||||||||
145.2 | 132.7 | 289.3 | 261.0 | |||||||||||||
Average Realized Third-Party Sales Price
(per pound): |
||||||||||||||||
Fabricated Products3 |
$ | 2.33 | $ | 2.13 | $ | 2.29 | $ | 2.11 | ||||||||
All Other2 |
$ | | $ | | $ | | $ | 0.92 | ||||||||
Net Sales: |
||||||||||||||||
Fabricated Products |
$ | 338.8 | $ | 282.4 | $ | 661.4 | $ | 549.6 | ||||||||
All Other 2 |
| | | 0.3 | ||||||||||||
Total Net Sales |
$ | 338.8 | $ | 282.4 | $ | 661.4 | $ | 549.9 | ||||||||
Segment Operating Income (Loss):4 |
||||||||||||||||
Fabricated Products5,6 |
$ | 32.9 | $ | 32.2 | $ | 56.6 | $ | 54.3 | ||||||||
All Other7 |
(17.5 | ) | (28.2 | ) | (20.7 | ) | (35.5 | ) | ||||||||
Total Operating Income |
$ | 15.4 | $ | 4.0 | $ | 35.9 | $ | 18.8 | ||||||||
Income tax provision |
$ | (3.1 | ) | $ | (1.1 | ) | $ | (9.5 | ) | $ | (7.3 | ) | ||||
Net Income |
$ | 4.5 | $ | 0.1 | $ | 15.8 | $ | 8.9 | ||||||||
Capital Expenditures |
$ | 7.9 | $ | 12.8 | $ | 14.1 | $ | 26.7 | ||||||||
1 | Please refer to the Companys Form 10-Q for the quarter ended June 30, 2011, for additional detail regarding the items in the table. | |
2 | Shipments, averaged realized prices and net sales in All Other in 2010 represent residual activity involving primary aluminum purchased by us from Anglesey while it continued its smelting operations (prior to September 30, 2009) and resold by us in the first quarter of 2010. | |
3 | Average realized prices for our Fabricated Products segment are subject to fluctuations due to changes in product mix as well as underlying primary aluminum prices and are not necessarily indicative of changes in underlying profitability. | |
4 | We periodically reassess the methodologies used to allocate costs among our business units to assess segment profitability. In the fourth quarter of 2010, we modified the allocation of incentive compensation expense relating to both our long-term incentive plans and certain short-term incentive plans to our business units. These reclassifications have no impact on our segment or consolidated Net sales, or our consolidated operating income. All interim period results of 2010 have been retrospectively adjusted for consistency with such cost allocation. As a result, an additional $0.9 million and $1.8 million of charges relating to our long-term incentive plans and certain short-term employee incentive plans are reflected in the operating results of the Fabricated Products segment in the quarter and six months ended June 30, 2010, respectively; accordingly, such costs have been excluded from the operating results of All Other for the corresponding periods. | |
5 | Fabricated Products segment results for the quarter and six months ended June 30, 2011 include non-cash mark-to-market gains on natural gas, electricity and foreign currency hedging activities totaling $0.2 million and $1.4 million, respectively. Fabricated Products segment results for the quarter and six months ended June 30, 2010 include non-cash mark-to-market gains (losses) on natural gas and foreign currency hedging activities of $0.4 million and $(2.8) million, respectively. |
6 | Fabricated Products segment operating results for the quarter and six months ended June 30, 2011 include non-cash last-in, first-out (LIFO) inventory charges of $5.0 million and $19.9 million, respectively, and metal gains of approximately $6.0 million and $18.4 million, respectively. Fabricated Products segment operating results for the quarter and six months ended June 30, 2010 include LIFO inventory (benefit) charge of $(1.0) million and $8.2 million, respectively, and metal (losses) gains of approximately $(0.9) million and $7.3 million, respectively. | |
7 | The changes in operating income in All Other were driven by the Corporate and Other and the Hedging business unit operating results. Included in the operating results of Corporate and Other were $2.2 million and $4.4 million of net periodic pension benefit income relating to certain voluntary employees beneficiary associations for the benefit of certain retirees, their surviving spouses and eligible dependents (the VEBAs) for the quarter and six months ended June 30, 2011, respectively, as compared to $0.5 million and $0.9 million of net periodic pension benefit expense for the quarter and six months ended June 30, 2010, respectively. In addition, for the quarter and six months ended June 30, 2011, non-cash mark-to-market losses on primary aluminum hedging activities were $9.7 million and $6.6 million, respectively, as compared to non-cash mark-to-market losses on primary aluminum of $19.4 million and $16.0 million for the quarter and six months ended June 30, 2010, respectively. |
KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED BALANCE SHEETS (1)
(Unaudited)
(In millions of dollars, except share and per share amounts)
CONSOLIDATED BALANCE SHEETS (1)
(Unaudited)
(In millions of dollars, except share and per share amounts)
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
ASSETS |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 59.8 | $ | 135.6 | ||||
Receivables: |
||||||||
Trade, less allowance for doubtful receivables of $0.6 at June
30, 2011 and December 31, 2010 |
119.1 | 83.0 | ||||||
Other |
3.8 | 5.2 | ||||||
Inventories |
178.2 | 167.5 | ||||||
Prepaid expenses and other current assets |
78.8 | 80.1 | ||||||
Total current assets |
439.7 | 471.4 | ||||||
Property, plant, and equipment net |
360.4 | 354.1 | ||||||
Net asset in respect of VEBAs |
265.6 | 195.7 | ||||||
Deferred tax assets net |
197.7 | 231.1 | ||||||
Intangible assets net |
38.3 | 4.0 | ||||||
Goodwill |
37.2 | 3.1 | ||||||
Other assets |
80.9 | 83.0 | ||||||
Total |
$ | 1,419.8 | $ | 1,342.4 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 73.7 | $ | 50.8 | ||||
Accrued salaries, wages, and related expenses |
26.9 | 31.1 | ||||||
Other accrued liabilities |
34.4 | 42.0 | ||||||
Payable to affiliate |
25.1 | 17.1 | ||||||
Current portion of secured debt and credit facilities |
4.8 | 1.3 | ||||||
Total current liabilities |
164.9 | 142.3 | ||||||
Long-term liabilities |
141.8 | 134.7 | ||||||
Cash convertible senior notes |
144.6 | 141.4 | ||||||
Long-term secured debt and credit facilities |
7.6 | 11.8 | ||||||
Total liabilities |
458.9 | 430.2 | ||||||
Commitments and contingencies |
||||||||
Stockholders equity: |
||||||||
Common stock, par value $0.01, 90,000,000 shares authorized at both June 30, 2011 and at
December 31, 2010; 19,285,825 shares issued and outstanding at June 30, 2011 and 19,214,451
shares issued and outstanding at December 31, 2010 |
0.2 | 0.2 | ||||||
Additional capital |
997.9 | 987.1 | ||||||
Retained earnings |
86.6 | 80.1 | ||||||
Common stock owned by Union VEBA subject to transfer restrictions, at reorganization value,
2,202,495 shares at June 30, 2011 and 3,523,980 shares at December 31, 2010 |
(52.9 | ) | (84.6 | ) | ||||
Treasury stock, at cost, 1,724,606 shares at June 30, 2011 and December 31, 2010 |
(72.3 | ) | (72.3 | ) | ||||
Accumulated other comprehensive income |
1.4 | 1.7 | ||||||
Total stockholders equity |
960.9 | 912.2 | ||||||
Total |
$ | 1,419.8 | $ | 1,342.4 | ||||
1 | Please refer to the Companys Form 10-Q for the quarter ended June 30, 2011 for additional detail regarding the items in the table. |
Reconciliation of Non-GAAP Measures Quarter Ended June 30, 2011
The following table presents a reconciliation of non-GAAP measures presented in
the earnings release for the quarter ended June 30, 2011 (in millions of
dollars except share and per share amounts):
Consolidated | ||||
GAAP operating income |
$ | 15.4 | ||
Mark to market gains |
(9.5 | ) | ||
Restructuring costs and other operating benefits, net |
0.3 | |||
Other NRR items1,2 |
0.7 | |||
Operating income, excluding operating NRR items |
23.9 | |||
Depreciation and Amortization |
6.4 | |||
Adjusted EBITDA 3 |
$ | 30.3 | ||
GAAP net income |
$ | 4.5 | ||
Operating NRR adjustments (net of tax) |
5.3 | |||
Net income, excluding operating NRR adjustments (net of tax) |
9.8 | |||
NRR convertible note adjustment (net of tax)4 |
2.2 | |||
Net income, excluding Total NRR items (net of tax) |
$ | 12.0 | ||
Earnings per diluted share (GAAP) |
$ | 0.24 | ||
Earnings per
diluted share, excluding operating NRR items |
$ | 0.52 | ||
Earnings per diluted share, excluding Total NRR items |
$ | 0.63 |
1 | Other operating non-run-rate items represent environmental expenses, non-cash LIFO charges and metal gains in the Fabricated Products segment and non-cash net periodic benefit income related to the VEBAs in All Other | |
2 | NRR is an abbreviation for Non-Run-Rate; NRR items are pre-tax | |
3 | Operating Income excluding non-run-rate items, depreciation and amortization | |
4 | Previously reported adjusted earnings per diluted share did not reflect the unrealized mark-to-market impact of the derivatives relating to the convertible debt and related call options |
Reconciliation of Non-GAAP Measures Quarter Ended June 30, 2010
The following table presents a reconciliation of non-GAAP measures presented in
the earnings release for the quarter ended June 30, 2010 (in millions of
dollars except share and per share amounts):
Consolidated | ||||
GAAP operating income |
$ | 4.0 | ||
Mark to market gains |
(19.0 | ) | ||
Restructuring costs and other operating benefits, net |
(2.1 | ) | ||
Other NRR items1,2 |
(0.4 | ) | ||
Operating income, excluding operating NRR items |
25.5 | |||
Depreciation and Amortization |
5.0 | |||
Adjusted EBITDA 3 |
$ | 30.5 | ||
GAAP net income |
$ | 0.1 | ||
Operating NRR adjustments (net of tax) |
13.4 | |||
Net income, excluding operating NRR adjustments (net of tax) |
13.5 | |||
NRR convertible note adjustment (net of tax)4 |
(0.6 | ) | ||
Net income, excluding Total NRR items (net of tax) |
$ | 12.9 | ||
Earnings per diluted share (GAAP) |
$ | 0.01 | ||
Earnings per diluted share, excluding operating NRR items |
$ | 0.71 | ||
Earnings per diluted share, excluding Total NRR items |
$ | 0.68 |
1 | Other operating non-run-rate items represent environmental expenses, non-cash LIFO benefits and metal losses in the Fabricated Products segment and non-cash net periodic benefit expense related to the VEBAs in All Other | |
2 | NRR is an abbreviation for Non-Run-Rate; NRR items are pre-tax | |
3 | Operating Income excluding non-run-rate items, depreciation and amortization | |
4 | Previously reported adjusted earnings per diluted share calculations did not reflect the unrealized mark-to-market impact of the derivatives relating to the convertible debt and related call options |