NASDAQ$CENX

Century Aluminum Company · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Announced second quarter 2020 results, impacted by exceptional items and unfavorable price realizations, but maintained strong cash flow and liquidity.

Century Aluminum Company reported a net loss of $(26.9) million for the second quarter of 2020, with adjusted EBITDA of $4.7 million. The results were negatively impacted by exceptional items including a lower of cost or net realizable value inventory adjustment. However, the company maintained a strong cash flow and liquidity position, ending the quarter with $174.1 million in cash.

  • Shipments increased by 4% over the prior quarter, reaching 210,309 tonnes.
  • Net sales decreased by 5% over the prior quarter to $401.9 million, primarily due to lower LME prices and regional premiums.
  • Net loss was $(26.9) million, or $(0.30) per share.
  • Adjusted EBITDA was $4.7 million, a decrease from the prior quarter.

Headline financials

Total Revenue

$402M

Previous: $473M-15.0%
EPS (adj)

-$0.19

Previous: -$0.17-11.8%
Primary Aluminum Shipments

210.3K

Previous: 203.4K+3.4%
Capital Expenditures

-$9.6M

Previous: -$23.3M+58.8%
Free Cash Flow

-$36.5M

Previous: -$44M+17.0%
Net Income

-$26.9M

Previous: -$20.7M-30.0%
Operating Income

-$25M

Previous: -$16.3M-53.4%
Gross Profit

-$13M

Previous: -$4.1M-217.1%
Cash & Equivalents

$174M

Previous: $25.7M+577.4%
Total Assets

$1.52B

Previous: $1.52B+0.6%

Revenue & EPS history

Century Aluminum · Revenue · Quarterly

$402M

Q2 2020-15%vs Q2 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Forward guidance

Third quarter financial performance will reflect the depressed commodity price environment that persisted throughout April and May. The metal price has since then improved meaningfully, consistent with the progress in a broad spectrum of manufacturing sectors and in the economy more generally.

Tailwinds

  • Metal price has improved meaningfully.
  • Seeing evidence of these trends in regional and product premiums.
  • Century remains in excellent shape to address any number of scenarios.
  • Prepared to operate in the present manner for a protracted period, until the public health and economic outlooks become clearer.
  • Remain focused on the strategic initiatives that will drive long-term value

Headwinds

  • Third quarter reported financial performance will reflect the depressed commodity price environment.
  • U.S. delivered price remains depressed as the direct result of the surge of primary aluminum imports from Canada
  • Re-imposition of the tariff remains the only method of regaining the effectiveness of the program.
  • Second quarter financial performance was consistent with our expectations.
  • Public health and economic outlooks become clearer

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 Q2 2020

Historical avgQ2 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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