NASDAQ$CENX

Century Aluminum Company · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Announced first quarter 2020 results.

Century Aluminum Company reported a net loss of $(2.7) million for the first quarter of 2020, with adjusted net income of $1.0 million. The results were negatively impacted by $3.7 million of non-cash exceptional items.

  • Shipments of 202,905 tonnes
  • Net sales of $421.2 million, a 3% decrease over prior quarter due to lower regional premiums
  • Net loss of $(2.7) million, or $(0.03) per share
  • Adjusted net income of $1.0 million, or $0.01 per share

Headline financials

Total Revenue

$421M

Previous: $490M-14.0%
EPS (adj)

$0.01

Previous: -$0.70+101.4%
Primary Aluminum Shipments

202.9K

No prior period
Adjusted EBITDA

$28.1M

No prior period
Capital Expenditures

-$6M

Previous: -$10.6M+43.4%
Free Cash Flow

-$8.7M

Previous: -$45.2M+80.8%
Net Income

-$2.7M

Previous: -$34.6M+92.2%
Operating Income

-$4.4M

Previous: -$27.8M+84.2%
Gross Profit

$4.8M

Previous: -$12.8M+137.5%
Cash & Equivalents

$148M

Previous: $22.2M+564.9%
Total Assets

$1.59B

Previous: $1.53B+4.0%

Revenue & EPS history

Century Aluminum · Revenue · Quarterly

$421M

Q1 2020-14%vs Q1 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Century has an informed view of second quarter cash flow and possess ample liquidity for the foreseeable future, even if commodity prices were to remain at current levels. They intend to balance protection of the Company’s near-term financial strength and flexibility with the preservation of their ability to participate fully in the recovery which will come.

Tailwinds

  • Successful implementation of cost reduction and cash flow enhancement measures.
  • Informed view of second quarter cash flow.
  • Ample liquidity for the foreseeable future, even if commodity prices were to remain at current levels.
  • Seeing meaningful reductions in the price of key inputs, including alumina, and wholesale electric power.
  • Plants have maintained their production rates, and continue to sell all of metal essentially as it is cast; have not observed a build of finished goods inventory and do not anticipate such a scenario.

Headwinds

  • Loss of a colleague in a workplace incident.
  • Recorded only one confirmed case of COVID-19, and have had a further handful of employees quarantined due to contact with infected persons.
  • Commodity prices have fallen at an unprecedented pace in reaction to the demand destruction caused by the health crisis.
  • Degradation in the order books of certain customers has caused us to move our product mix to a higher proportion of standard products, thus lowering somewhat the average premium we receive.
  • First quarter results were negatively impacted by $3.7 million of non-cash exceptional items, including a $12.1 million lower of cost or net realizable value inventory adjustment (net of tax), offset by $8.3 million of unrealized gains on forward derivative contracts.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-1.7%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.6%

Avg return

30 days after

42%

27 / 64 earnings

Positive

+22.2%

Q3 2024

Best reaction

-37.7%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.2%+6.2%-0.9%
Q4 2025+0.2%+1.0%-6.7%
Q3 2025+14.1%+2.0%+7.2%
Q2 2025+1.5%+5.2%-2.4%
Q1 2025-2.0%+8.6%+23.5%
Q4 2024-13.3%-3.2%-3.6%
Q3 2024+22.2%+28.3%+38.0%
Q1 2024-6.2%+0.3%+5.6%
Q4 2023+0.4%-1.9%+29.5%
Q3 2023+1.8%+3.4%+21.4%
Q2 2023-8.5%-10.0%-21.3%
Q1 2023-5.9%-11.5%+4.8%
Q4 2022+2.0%+15.7%-14.0%
Q3 2022+8.2%+30.2%+10.9%
Q2 2022+21.5%+23.3%-2.5%
Q1 2022-14.4%-22.4%-37.2%
Q4 2021+7.4%+23.1%+32.4%
Q3 2021-1.3%+4.8%+0.1%
Q2 2021-26.7%-24.0%-14.8%
Q1 2021-10.7%-5.5%-24.6%
Q4 2020+2.4%+6.4%+28.5%
Q3 2020-2.4%+7.4%+54.3%
Q2 2020+10.3%+13.2%+2.6%
Q1 2020-2.8%+5.3%+27.4%
Q4 2019+7.6%+3.2%-47.0%
Q3 2019+14.1%+20.2%-0.6%
Q2 2019-2.4%-4.6%-23.4%
Q1 2019-7.6%-2.3%-32.0%
Q4 2018+0.9%+1.9%-9.6%
Q3 2018-14.1%-12.9%-2.0%
Q2 2018+2.3%-0.2%-1.5%
Q1 2018-10.4%-6.6%+7.5%
Q4 2017-7.9%-12.9%-26.6%
Q3 2017+0.4%-7.4%-9.7%
Q2 2017-20.1%-18.6%+23.2%
Q1 2017+17.3%+8.0%+17.4%
Q4 2016-6.8%-2.7%-18.5%
Q3 2016-3.5%-5.4%+37.3%
Q2 2016+6.2%-5.3%-9.7%
Q1 2016-4.2%
Q4 2015+13.5%
Q3 2015-12.6%
Q2 2015-37.7%
Q1 2015+11.4%
Q4 2014-12.5%
Q3 2014+3.4%
Q2 2014+1.3%
Q1 2014-0.4%
Q4 2013-1.5%
Q3 2013+6.8%
Q2 2013-14.9%
Q1 2013-3.2%
Q4 2012-4.9%
Q3 2012+11.5%
Q2 2012-7.7%
Q1 2012-2.9%
Q4 2011+0.2%
Q3 2010-6.4%
Q3 2011-6.4%
Q2 2011+7.1%
Q2 2010-5.1%
Q1 2010-5.1%
Q1 2011-5.1%
Q4 2010-1.2%

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