CENTURY ALUMINUM CO - FORM 8-K - EX-99.1 - PRESS RELEASE DATED APRIL 30, 2015 - April 30, 2015

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Exhibit 99.1
Century Reports First Quarter 2015 Financial Results
CHICAGO, IL -- 04/30/15 -- Century Aluminum Company (NASDAQ: CENX) reported net income of $73.8 million ($0.76 per common share) for the first quarter of 2015. Results include $6.5 million ($0.07 per common share) for an unrealized gain on fair value of contingent consideration related to the acquisition of the remaining 50.3% interest of Mt. Holly and were negatively impacted by $1.6 million ($0.02 per common share) for signing bonuses related to a new labor agreement in Iceland and $1.0 million ($0.01 per common share) related to the separation of a former senior executive.
Sales for the first quarter of 2015 were $587.9 million compared with $420.8 million for the first quarter of 2014. Shipments of primary aluminum for the first quarter of 2015 were 245,258 tonnes compared with 206,785 tonnes shipped in the first quarter of 2014.
For the first quarter of 2014, Century reported a net loss of 20.1 million ($0.23 per common share). Cost of sales for the quarter included a benefit of $5.5 million related to deferred power contract liability amortization. Results were negatively impacted by a $3.1 million charge for increased legal reserves. 
Net cash provided by operating activities in the first quarter of 2015 was $116.3 million as compared to a net use of cash of $10.7 million in the first quarter of 2014.  During the first quarter of 2015, Century increased its share repurchase program authorization to $130 million and acquired 1.2 million shares of common stock for a total cost of $19.4 million.
"Our markets continue to be buffeted by several volatile forces," commented Michael Bless, President and CEO.  "From a global macro perspective, a strong dollar pressures commodities and is especially punitive on U.S. producers.  Specific to our sector, the trend in fundamentals remains generally positive.  U.S. demand is strong and we see signs of growth, albeit from a low base, in Europe.  In addition, supply outside of China remains well under control; there is a dearth of new projects and of any significant potential restarts.  The wild card continues to be China.  We are closely monitoring an improving smelting cost base, weakening domestic demand and a recent small relaxation in the export tariff regime.  While the latter is on its face troubling, we do not see tangible harm unless further actions would be taken.  We will continue to run the company on a reasonably cautious basis in light of fast changing market conditions."
Bless continued, "We are pleased with the company's performance during the quarter.  Safety results were generally good. Management at Hawesville have done a very good job returning the plant to stability after the power modulations we endured last year.  Operating metrics were favorable across the plants, and cash flow was strong.  We reached a five year labor agreement with our unions at Grundartangi.  Market power prices in the U.S. Midwest and Southeast remain attractive. In South Carolina, we have made progress toward structuring a post-2015 power contract that will support the operations of this excellent plant.  Significant issues remain to be solved, but we are cautiously optimistic that a solution should be achievable."

"During the next several months we will cross milestones in several critical areas," concluded Bless.  "We will reach, one way or another, the conclusion of the post-2015 power discussions in South Carolina.  The same comment applies with regard to a power contract to enable the restart of Ravenswood; we should soon be in a position to finalize an acceptable structure or regrettably to conclude that such an outcome is not feasible.  We remain steadfast in our determination to reopen this plant.  We also hope to find a rational solution to the labor situation at Hawesville."




About Century Aluminum
Century Aluminum Company owns primary aluminum capacity in the United States and Iceland. Century's corporate offices are located in Chicago, IL. Visit www.centuryaluminum.com for more information.
Certified Advisors for the First North market of the OMX Nordic Exchange Iceland hf. for Global Depositary Receipts in Iceland:
Atli B. Gudmundsson, Senior Manager -- Corporate Finance, Landsbankinn hf.
Steingrimur Helgason, Director -- Corporate Finance, Landsbankinn hf.
Cautionary Statement
This press release contains "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 Securities Exchange Act of 1934. Forward-looking statements are statements about future events and are based on our current expectations. These forward-looking statements may be identified by the words “believe,” “expect,” “hope,” “target,” “anticipate,” “intend,” “plan,” “seek,” “estimate,” “potential,” “project,” “scheduled,” “forecast” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” “might,” or “may.” Our forward-looking statements include, without limitation, statements with respect to: future global and local financial and economic conditions; our assessment of the aluminum market and aluminum prices (including premiums); our assessment of power pricing and our ability to successfully obtain and/or implement long-term competitive power arrangements for our operations and projects, including at Mt. Holly and Ravenswood; negotiations with labor unions and our ability to successfully reach an agreement with the labor union representing our Hawesville employees; our plans and expectations with respect to restarting operations at our Ravenswood smelter; the future financial and operating performance of the Company, its subsidiaries and its projects; future earnings, operating results and liquidity; future inventory, production, sales, cash costs and capital expenditures; our business objectives, strategies and initiatives, the growth of our business (including with respect to production and production capacity); and our competitive position and prospects.
Where we express an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, our forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from future results expressed, projected or implied by those forward-looking statements. Important factors that could cause actual results and events to differ from those described in such forward-looking statements can be found in the risk factors and forward-looking statements cautionary language contained in our Annual Report on Form 10-K, quarterly reports on Form 10-Q and in other filings made with the Securities and Exchange Commission. Although we have attempted to identify those material factors that could cause actual results or events to differ from those described in such forward-looking statements, there may be other factors that could cause results or events to differ from those anticipated, estimated or intended. Many of these factors are beyond our ability to control or predict. Given these uncertainties, the reader is cautioned not to place undue reliance on our forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts
Kenny Barkley (media)

 
270-577-2070

Peter Trpkovski (investors)    
 
312-696-3112








CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
 
Three months ended March 31,
 
2015
 
2014
NET SALES:
 
 
 
Related parties
$
575,729

 
$
285,583

Third-party customers
12,182

 
135,264

Total net sales
587,911

 
420,847

Cost of goods sold
493,816

 
422,605

Gross profit (loss)
94,095

 
(1,758
)
Other operating expense – net
2,079

 
2,414

Selling, general and administrative expenses
11,971

 
10,062

Operating income (loss)
80,045

 
(14,234
)
Interest expense
(5,551
)
 
(5,477
)
Interest income
142

 
140

Net gain (loss) on forward and derivative contracts
353

 
(879
)
Unrealized gain on fair value of contingent consideration
6,527

 
—

Other income (expense) – net
1,054

 
(253
)
Income (loss) before income taxes and equity in earnings (losses) of joint ventures
82,570

 
(20,703
)
Income tax benefit (expense)
(9,301
)
 
1,094

Income (loss) before equity in earnings (losses) of joint ventures
73,269

 
(19,609
)
Equity in earnings (losses) of joint ventures
510

 
(495
)
Net income (loss)
$
73,779

 
$
(20,104
)
 
 
 
 
Net income (loss) allocated to common stockholders
$
67,813

 
$
(20,104
)
EARNINGS (LOSS) PER COMMON SHARE:
 
 
 
Basic and Diluted
$
0.76

 
$
(0.23
)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
 
 
 
Basic
88,814

 
88,717

Diluted
89,369

 
88,717






CENTURY ALUMINUM COMPANY
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
(Unaudited)
 
March 31, 2015
 
December 31, 2014
ASSETS
 
 
 
Cash and cash equivalents
$
226,431

 
$
163,242

Restricted cash
21,813

 
801

Accounts receivable — net
3,464

 
76,165

Due from affiliates
85,062

 
31,503

Inventories
297,814

 
283,480

Prepaid and other current assets
23,809

 
29,768

Deferred taxes
14,281

 
14,281

Total current assets
672,674

 
599,240

Property, plant and equipment — net
1,285,845

 
1,291,218

Other assets
124,529

 
123,577

TOTAL
$
2,083,048

 
$
2,014,035

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
LIABILITIES:
 
 
 
Accounts payable, trade
$
140,093

 
$
151,443

Due to affiliates
50,033

 
22,261

Accrued and other current liabilities
107,374

 
104,646

Accrued employee benefits costs
10,058

 
10,159

Industrial revenue bonds
7,815

 
7,815

Total current liabilities
315,373

 
296,324

Senior notes payable
246,983

 
246,888

Accrued pension benefits costs — less current portion
57,722

 
59,906

Accrued postretirement benefits costs — less current portion
153,586

 
152,894

Other liabilities
47,990

 
53,272

Deferred taxes
122,447

 
113,604

Total noncurrent liabilities
628,728

 
626,564

 

 

SHAREHOLDERS’ EQUITY:
 
 
 
Series A Preferred stock (one cent par value, 5,000,000 shares authorized; 160,000 issued and 78,061 outstanding at March 31, 2015; 160,000 issued and 78,141 outstanding at December 31, 2014)
1

 
1

Common stock (one cent par value, 195,000,000 shares authorized; 93,869,878 issued and 87,883,357 outstanding at March 31, 2015; 93,851,103 issued and 89,064,582 outstanding at December 31, 2014)
939

 
939

Additional paid-in capital
2,510,665

 
2,510,261

Treasury stock, at cost
(76,385
)
 
(49,924
)
Accumulated other comprehensive loss
(117,604
)
 
(117,682
)
Accumulated deficit
(1,178,669
)
 
(1,252,448
)
Total shareholders’ equity
1,138,947

 
1,091,147

TOTAL
$
2,083,048

 
$
2,014,035





CENTURY ALUMINUM COMPANY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
 
Three months ended March 31,
 
2015
 
2014
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income (loss)
$
73,779

 
$
(20,104
)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
Unrealized gain on fair value of contingent consideration
(6,527
)
 
—

Unrealized gain on E.ON contingent obligation
(353
)
 
(353
)
Accrued and other plant curtailment costs — net
1,077

 
1,092

Lower of cost or market inventory adjustment
—

 
(1,107
)
Depreciation
18,131

 
17,768

Sebree power contract amortization
—

 
(5,534
)
Debt discount amortization
95

 
88

Pension and other postretirement benefits
(984
)
 
2,613

Deferred income taxes
8,851

 
512

Stock-based compensation
405

 
198

Equity in (earnings) losses of joint ventures, net of dividends
(510
)
 
495

Change in operating assets and liabilities:
 
 
 
Accounts receivable — net
72,702

 
10,566

Due from affiliates
(53,559
)
 
(12,545
)
Inventories
(14,335
)
 
(11,377
)
Prepaid and other current assets
5,960

 
(2,958
)
Accounts payable, trade
(18,508
)
 
(3,825
)
Due to affiliates
27,773

 
20,798

Accrued and other current liabilities
2,874

 
(6,620
)
Other — net
(604
)
 
(448
)
Net cash provided by (used in) operating activities
116,267

 
(10,741
)
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchase of property, plant and equipment
(10,960
)
 
(9,700
)
Nordural expansion — Helguvik
(73
)
 
(93
)
Purchase of carbon anode assets and improvements
(1,594
)
 
(5,724
)
Restricted and other cash deposits
(21,012
)
 
665

Net cash used in investing activities
(33,639
)
 
(14,852
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Borrowings under revolving credit facilities
455

 
18,870

Repayments under revolving credit facilities
(455
)
 
(24,870
)
Repurchase of common stock
(19,439
)
 
—

Issuance of common stock
—

 
3

Net cash used in financing activities
(19,439
)
 
(5,997
)
CHANGE IN CASH AND CASH EQUIVALENTS
63,189

 
(31,590
)
Cash and cash equivalents, beginning of period
163,242

 
84,088

Cash and cash equivalents, end of period
$
226,431

 
$
52,498







CENTURY ALUMINUM COMPANY
SELECTED OPERATING DATA
(Unaudited)

 
SHIPMENTS - PRIMARY ALUMINUM
 
 
 
 
 
 
 
 
 
 
 
Direct (1)
 
Toll
 
United States
 
Iceland
 
Iceland
 
Tonnes
 
Sales $ (000)
 
Tonnes
 
Sales $ (000)
 
Tonnes
 
Sales $ (000)
2015
 
 
 
 
 
 
 
 
 
 
 
1st Quarter
169,306

 
$
421,141

 
45,967

 
$
112,662

 
29,985

 
$
46,617

2014
 
 
 
 
 
 
 
 
 
 
 
1st Quarter
136,532

 
$
296,889

 
36,764

 
$
74,370

 
33,489

 
$
47,185

(1)
Excludes scrap aluminum sales.


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