Second Quarter 2016
Highlights:
- Net Sales $335 Million; Value Added Revenue $206 Million
- Net Income $26 Million; Adjusted EBITDA $55 Million; Adjusted EBITDA Margin 27%
- Solid Demand for Aerospace/High Strength, Automotive and General Engineering Applications
- Favorable Mix and Pricing Including Benefits from Low Contained Metal Costs
- Continued Improvement in Underlying Manufacturing Cost Efficiency
FOOTHILL RANCH, Calif., July 20, 2016 (GLOBE NEWSWIRE) -- Kaiser Aluminum Corporation (NASDAQ:KALU) today announced second
quarter 2016 results, reporting net income of $26 million, or $1.43 earnings per diluted share, compared to net income and earnings
per diluted share of $20 million and $1.11, respectively, for the prior year period. Excluding the impact of non-run-rate items,
adjusted net income was $19 million, or $1.02 per diluted share, for the second quarter 2016, compared to adjusted net income of
$23.1 million, or $1.27 per diluted share, for the second quarter 2015. Reported and as adjusted second quarter 2016 results
included approximately $11 million of additional pre-tax expense associated with the early retirement of the Company’s 8.25%
unsecured senior notes, resulting in a $0.38 after tax impact on earnings per diluted share.
For the first half 2016, the Company reported net income of $52 million, or $2.87 earnings per diluted share, compared to a net
loss of $272 million, or a $15.78 loss per diluted share in the prior year period. The net loss reported in the prior year period
reflected a $308 million after-tax, non-cash, non-run-rate charge associated with the termination of defined benefit accounting and
removal of the assets and liabilities related to the ongoing union voluntary employee beneficiary association ("Union VEBA") from
the Company's consolidated balance sheet. Excluding the impact of non-run-rate items, adjusted net income was $46 million, or $2.52
earnings per diluted share, for the first half 2016 compared to adjusted net income of $41 million, or $2.27 earnings per diluted
share, for the prior year period. As previously noted, first half 2016 results also reflected the expense related to the second
quarter redemption of the Company’s 8.25% senior notes.
Net sales of $335 million in the second quarter 2016 decreased from $367 million in the prior year period. For the first half
2016, net sales were $678 million, down from $739 million in the first half 2015. The decrease in net sales for the second quarter
and first half 2016 primarily reflects the impact of significantly lower underlying metal costs compared to the comparable periods
of 2015.
Value added revenue (net sales less the hedged cost of alloyed metal) of $206 million in the second quarter 2016 increased
slightly compared to a strong second quarter 2015. For the first half 2016, value added revenue was $417 million, up 4% from $401
million in the prior year period. Value added revenue for the quarter and first half 2016 reflected solid demand across end market
applications, favorable mix and pricing, including benefits from low contained metal costs on certain higher value added
products.
Adjusted consolidated EBITDA was $55 million, or 27% of value added revenue, for the second quarter 2016, compared to $52
million, or 26% of value added revenue, for the prior year period. The increase in adjusted consolidated EBITDA reflected a $7
million favorable sales impact and continued improvement in underlying manufacturing cost efficiency, partially offset by higher
overhead and benefits costs in the quarter.
For the first half 2016, adjusted consolidated EBITDA increased approximately $12 million to $110 million compared to the first
half 2015, reflecting a favorable sales impact of $20 million and approximately $4 million of underlying manufacturing
cost efficiencies partially offset by $12 million higher overhead and benefits costs. Adjusted consolidated EBITDA as a percentage
of value added revenue in the first half 2016 increased to 26% compared to 25% for the prior year period.
Summary
"Our strong results for the second quarter and first half 2016 reflect solid demand and sales margins,” said Jack A. Hockema,
CEO and Chairman. "The improved sales margins reflect price increases implemented in the second half 2015 as well as benefits from
low contained metal costs.
“We also continued to benefit from improved underlying manufacturing cost efficiency during the period. Our Spokane, Washington
("Trentwood") facility continues to derive greater efficiency and throughput from investments in the Phase 5 expansion and new
casting complex, and we expect to extract additional benefit from these investments as we further enhance production processes. In
addition, our automotive focused facilities are acclimating to the sales growth surge over the past two years while underlying cost
efficiency continues to improve.
“The $150 million multi-year capital investment program at our Trentwood facility is progressing as planned. We anticipate the
first phase of incremental cost efficiency and capacity will come on line in early 2018,” said Mr. Hockema.
| |
| Second Quarter and First Half 2016
Consolidated Results |
| (Unaudited)* |
| (In millions of dollars, except shipments, realized
price and per share amounts) |
| |
|
|
|
|
|
|
| |
Quarterly |
|
Six Months |
| |
2Q16 |
1Q16 |
2Q15 |
|
1H16 |
1H15 |
| |
|
| Shipments (millions of lbs) |
155 |
|
159 |
|
160 |
|
|
314 |
|
318 |
|
| |
|
|
|
|
|
|
| Net Sales |
$ |
335 |
|
$ |
343 |
|
$ |
367 |
|
|
$ |
678 |
|
$ |
739 |
|
| Less hedged cost of alloyed metal1 |
$ |
(129 |
) |
$ |
(133 |
) |
$ |
(164 |
) |
|
$ |
(262 |
) |
$ |
(338 |
) |
| Value added revenue |
$ |
206 |
|
$ |
211 |
|
$ |
203 |
|
|
$ |
417 |
|
$ |
401 |
|
| |
|
|
|
|
|
|
| Realized price per pound ($/lb) |
|
|
|
|
|
|
| Net sales |
$ |
2.16 |
|
$ |
2.15 |
|
$ |
2.30 |
|
|
$ |
2.16 |
|
$ |
2.33 |
|
| Less hedged cost of alloyed metal |
$ |
(0.83 |
) |
$ |
(0.83 |
) |
$ |
(1.03 |
) |
|
$ |
(0.83 |
) |
$ |
(1.07 |
) |
| Value added revenue |
$ |
1.33 |
|
$ |
1.32 |
|
$ |
1.27 |
|
|
$ |
1.33 |
|
$ |
1.26 |
|
| |
|
|
|
|
|
|
| Adjusted2 |
|
|
|
|
|
|
| Operating income |
$ |
46 |
|
$ |
47 |
|
$ |
44 |
|
|
$ |
92 |
|
$ |
82 |
|
| EBITDA3 |
$ |
55 |
|
$ |
55 |
|
$ |
52 |
|
|
$ |
110 |
|
$ |
98 |
|
| EBITDA margin4 |
26.6 |
% |
26.2 |
% |
25.8 |
% |
|
26.4 |
% |
24.5 |
% |
| Net income |
$ |
19 |
|
$ |
28 |
|
$ |
23 |
|
|
$ |
46 |
|
$ |
41 |
|
| EPS, diluted5 |
$ |
1.02 |
|
$ |
1.51 |
|
$ |
1.27 |
|
|
$ |
2.52 |
|
$ |
2.27 |
|
| |
|
|
|
|
|
|
| As reported |
|
|
|
|
|
|
| Operating income (loss) |
$ |
58 |
|
$ |
45 |
|
$ |
37 |
|
|
$ |
103 |
|
$ |
(422 |
) |
| Net income (loss) |
$ |
26 |
|
$ |
26 |
|
$ |
20 |
|
|
$ |
52 |
|
$ |
(272 |
) |
| EPS, diluted5 |
$ |
1.43 |
|
$ |
1.44 |
|
$ |
1.11 |
|
|
$ |
2.87 |
|
$ |
(15.78 |
) |
| |
|
|
|
|
|
|
| 1 Hedged cost of alloyed metal is our Midwest transaction
price of aluminum plus the price of alloying elements plus any realized gains and/or losses on settled hedges, related to the
metal sold in the referenced period. |
| 2 Adjusted numbers exclude non-run-rate items (for all
Adjusted numbers and EBITDA refer to Reconciliation of Non-GAAP Measures). |
| 3 Adjusted EBITDA = Consolidated Operating Income before
non-run-rate plus Depreciation and Amortization. |
| 4 Adjusted EBITDA margin = Adjusted EBITDA as a percent of
Value Added Revenue. |
| 5 Diluted shares for EPS calculated using treasury
method. |
| |
|
|
|
|
|
|
| *Please refer to GAAP financial statements. |
|
|
|
|
|
|
| Totals may not sum due to rounding. |
|
|
|
|
|
|
| |
|
|
|
|
|
|
Consolidated operating income excluding the impact of approximately $12 million of non-run-rate items was $46 million in the
second quarter 2016, up slightly compared to the prior year quarter of $44 million. For the first half 2016 the Company reported
consolidated operating income adjusted for non-run-rate items of $92 million, an increase of approximately $10 million compared to
the prior year period, primarily reflecting the impact of variable sales mix and margins and improving manufacturing cost
efficiencies, partially offset by higher overhead and benefits costs and higher depreciation expense.
Consolidated operating income in the second quarter 2016 was $58 million compared to $37 million in the prior year period. For
the first half 2016, consolidated operating income was $103 million compared to a consolidated operating loss of $422 million in
the prior year period. Included in the first half 2016 non-run-rate items was a $5 million lower-of-cost-or market inventory
adjustment due to the decline in net realizable value during the period. The operating loss reported in the prior year period
reflected approximately $504 million of non-run-rate losses primarily due to the removal of the Union VEBA assets and associated
liabilities.
Cash Flow and Balance Sheet
During the second quarter, the Company took advantage of favorable market conditions by issuing $375 million, 5.875% unsecured
senior notes due in May 2024. The Company subsequently utilized net proceeds to redeem the remaining principal amount of the 8.25%
unsecured senior notes due in June 2020, paying $198 million of principal and an $8 million call premium.
Capital spending during the first half 2016 was approximately $42 million as the Company continues to invest to support growth
in automotive extrusions and to further advance cost efficiency and product quality at its Trentwood facility in addition to normal
sustaining capital investments. The Company also continued to return cash to shareholders of approximately $25 million in the first
half 2016 through quarterly dividends and share repurchases.
As of June 30, 2016, total cash and cash equivalents and short-term investments were approximately $267 million and borrowing
availability under the Company's Revolving Credit Facility was approximately $280 million.
2016 Outlook
“As we look to the second half 2016, we anticipate normal seasonal demand weakness, and for general engineering plate, import
pressure is expected to negatively impact sales prices and margins. In addition, we have significant major maintenance expense
planned for the third quarter which we anticipate to be approximately $5-$6 million higher than the first half 2016 run-rate,” said
Mr. Hockema.
“For the full year, we are modifying our value added revenue outlook for aerospace and high strength applications to reflect
slightly higher than 5% year-over-year growth based upon stronger than anticipated demand for our aerospace and high strength
applications. In addition, we are reducing our outlook for year-over-year value added revenue growth in automotive extrusions from
10% to approximately 6% as one program terminated sooner than anticipated and another program is ramping up at a slower than
expected pace. The revision to our 2016 outlook for automotive extrusions does not change our longer-term outlook for continued
demand growth in aluminum extrusion content in vehicles for our served market segments.
“Overall, our full year outlook remains unchanged. We reiterate our outlook for value added revenue growth of 3%-5%
year-over-year with improvement in adjusted EBITDA and EBITDA margin driven by sales growth and continued improvement in
manufacturing efficiencies,” concluded Mr. Hockema.
Conference Call
Kaiser Aluminum Corporation will host a conference call on Thursday, July 21, 2016, at 10:00am (Pacific Time); 12:00pm (Central
Time); 1:00pm (Eastern Time), to discuss second quarter and first half 2016 results. To participate, the conference call can be
directly accessed from the U.S. and Canada at (888) 427-9419, and accessed internationally at (719) 457-1035. A link to the
simultaneous webcast can be accessed on the Company's 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 Company's 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, custom automotive,
general engineering, and other industrial applications. The Company's 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 the culture since the Company was founded in 1946. The Company's stock is included in the Russell 2000® index and the
S&P Small Cap 600® index.
Available Information
For more information, please visit the Company's 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 SEC's 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 Company's 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 company's 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 value added revenue, adjusted operating income, EBITDA,
adjusted EBITDA, adjusted net income, and adjusted earnings per diluted share which exclude non-run-rate items and ratios related
thereto. 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. 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.
Forward-Looking Statements
This press release contains statements based on management's 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) the continuation of strong secular demand
growth for the Company’s aerospace and automotive applications and improvement in the Company’s manufacturing efficiencies; (b) the
ability of the Company to identify and successfully execute strategic capital investments to facilitate growth in the Company’s
results; (c) the Company’s inability to achieve the level of shipments, profitable sales growth, capacity and capability
expansions, manufacturing cost efficiencies, increasing operating leverage, productivity improvements, product quality enhancements
or other benefits anticipated by management, including those anticipated from the Company’s strategic investments; (d) demand
drivers and the Company’s ability to participate in mature and anticipated new automotive programs expected to launch in the future
and growing demand for its products driven by higher airframe build rates, larger airframes and the continued conversion to
monolithic designs; (e) the Company’s ability to successfully execute planned preventive maintenance projects and sustaining
capital investments; (f) 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 Company's ability to flex production consistent with changing demand levels; (g) the Company's ability to realize
manufacturing throughput gains and efficiencies, identify and successfully implement continuous improvement initiatives, and
complete its expansion and organic growth projects, equipment and facility upgrades to improve manufacturing cost efficiencies and
product and manufacturing platform expansions as planned and by targeted completion dates; (h) the impact of the Company's future
earnings, financial condition, capital requirements and other factors on future dividends or the repurchase of shares of the
Company's common stock and any decision by the Company's board of directors in regard to either; (i) the completion of the review
of the financial statements as of and for the quarter and six-month period ended June 30, 2016; and (j) other risk factors
summarized in the Company's reports filed with the Securities and Exchange Commission, including the Company's Form 10-K for the
year ended December 31, 2015 and Form 10-Q for the quarter ended June 30, 2016. The Company undertakes no duty to update any
forward-looking statement to conform the statement to actual results or changes in the Company's expectations.
| |
| KAISER ALUMINUM CORPORATION AND SUBSIDIARY
COMPANIES |
| STATEMENTS OF CONSOLIDATED INCOME (LOSS)
(UNAUDITED)(1) |
| |
|
|
|
| |
Quarter Ended |
|
Six Months Ended |
| |
June 30, |
|
June 30, |
| |
2016 |
|
2015 |
|
2016 |
|
2015 |
| |
(In millions of dollars, except share and per
share amounts) |
| Net sales |
$ |
334.9 |
|
|
$ |
367.2 |
|
|
$ |
678.1 |
|
|
$ |
738.9 |
|
| Costs and expenses: |
|
|
|
|
|
|
|
| Cost of products sold: |
|
|
|
|
|
|
|
| Cost of products sold, excluding depreciation and amortization and other items |
250.4 |
|
|
294.8 |
|
|
512.4 |
|
|
597.1 |
|
| Lower of cost or market inventory write-down |
— |
|
|
— |
|
|
4.9 |
|
|
— |
|
| Unrealized (gain) loss on derivative instruments |
(10.9 |
) |
|
1.5 |
|
|
(14.9 |
) |
|
6.0 |
|
| Depreciation and amortization |
9.0 |
|
|
8.1 |
|
|
17.7 |
|
|
16.1 |
|
| Selling, general, administrative, research and development: |
|
|
|
|
|
|
|
| Selling, general, administrative, research and development |
27.5 |
|
|
23.6 |
|
|
53.6 |
|
|
46.3 |
|
| Net periodic postretirement benefit cost relating to Salaried VEBA |
0.9 |
|
|
0.6 |
|
|
1.7 |
|
|
1.2 |
|
| Loss (gain) on removal of Union VEBA net assets |
— |
|
|
1.6 |
|
|
(0.1 |
) |
|
493.8 |
|
| Total selling, general, administrative, research and development |
28.4 |
|
|
25.8 |
|
|
55.2 |
|
|
541.3 |
|
| Other operating charges, net |
0.1 |
|
|
— |
|
|
0.1 |
|
|
— |
|
| Total costs and expenses |
277.0 |
|
|
330.2 |
|
|
575.4 |
|
|
1,160.5 |
|
| Operating income (loss) |
57.9 |
|
|
37.0 |
|
|
102.7 |
|
|
(421.6 |
) |
| Other (expense) income: |
|
|
|
|
|
|
|
| Interest expense |
(5.5 |
) |
|
(5.2 |
) |
|
(9.2 |
) |
|
(15.0 |
) |
| Other (expense) income, net |
(10.7 |
) |
|
0.4 |
|
|
(10.4 |
) |
|
0.8 |
|
| Income (loss) before income taxes |
41.7 |
|
|
32.2 |
|
|
83.1 |
|
|
(435.8 |
) |
| Income tax (provision) benefit |
(15.7 |
) |
|
(12.0 |
) |
|
(30.8 |
) |
|
163.8 |
|
| Net income (loss) |
$ |
26.0 |
|
|
$ |
20.2 |
|
|
$ |
52.3 |
|
|
$ |
(272.0 |
) |
| |
|
|
|
|
|
|
|
| Net income (loss) per common share: |
|
|
|
|
|
|
|
| Basic |
$ |
1.45 |
|
|
$ |
1.19 |
|
|
$ |
2.92 |
|
|
$ |
(15.78 |
) |
| Diluted2 |
$ |
1.43 |
|
|
$ |
1.11 |
|
|
$ |
2.87 |
|
|
$ |
(15.78 |
) |
| Weighted-average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
| Basic |
17,871 |
|
|
17,006 |
|
|
17,867 |
|
|
17,233 |
|
| Diluted2 |
18,194 |
|
|
18,192 |
|
|
18,194 |
|
|
17,233 |
|
| |
|
|
|
|
|
|
|
| Dividends declared per common share |
$ |
0.45 |
|
|
$ |
0.40 |
|
|
$ |
0.90 |
|
|
$ |
0.80 |
|
1 Please refer to the Company's Form 10-Q for the quarter ended June 30, 2016 for detail regarding the items in
the table.
2 Diluted shares are calculated using the treasury stock method.
| |
| KAISER ALUMINUM CORPORATION AND SUBSIDIARY
COMPANIES |
| CONSOLIDATED BALANCE SHEETS
(UNAUDITED)(1) |
| |
| |
June 30,
2016 |
|
December 31,
2015 |
| |
(In millions of dollars, except share and per
share amounts) |
| ASSETS |
|
|
|
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
195.3 |
|
|
$ |
72.5 |
|
| Short-term investments |
72.0 |
|
|
30.0 |
|
| Receivables: |
|
|
|
| Trade receivables – net |
134.6 |
|
|
116.7 |
|
| Other |
8.2 |
|
|
6.1 |
|
| Inventories |
217.5 |
|
|
219.6 |
|
| Prepaid expenses and other current assets |
12.8 |
|
|
56.7 |
|
| Total current assets |
640.4 |
|
|
501.6 |
|
| Property, plant and equipment – net |
512.7 |
|
|
495.4 |
|
| Deferred tax assets – net |
180.9 |
|
|
163.3 |
|
| Intangible assets – net |
29.7 |
|
|
30.5 |
|
| Goodwill |
37.2 |
|
|
37.2 |
|
| Other assets |
20.7 |
|
|
19.6 |
|
| Total |
$ |
1,421.6 |
|
|
$ |
1,247.6 |
|
| LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
| Current liabilities: |
|
|
|
| Accounts payable |
$ |
72.3 |
|
|
$ |
76.7 |
|
| Accrued salaries, wages and related expenses |
36.4 |
|
|
39.8 |
|
| Other accrued liabilities |
44.2 |
|
|
52.7 |
|
| Short-term capital leases |
0.1 |
|
|
0.1 |
|
| Total current liabilities |
153.0 |
|
|
169.3 |
|
| Net liabilities of Salaried VEBA |
18.5 |
|
|
19.0 |
|
| Deferred tax liabilities |
2.2 |
|
|
2.1 |
|
| Long-term liabilities |
71.4 |
|
|
87.5 |
|
| Long-term debt |
368.2 |
|
|
194.6 |
|
| Total liabilities |
613.3 |
|
|
472.5 |
|
| Commitments and contingencies |
|
|
|
| Stockholders' equity: |
|
|
|
| Preferred stock, 5,000,000 shares authorized at both June 30, 2016 and December 31, 2015; no
shares were issued and outstanding at June 30, 2016 and December 31, 2015 |
— |
|
|
— |
|
| Common stock, par value $0.01, 90,000,000 shares authorized at both June 30, 2016 and at
December 31, 2015; 22,331,071 shares issued and 17,984,605 shares outstanding at June 30, 2016; 22,291,180 shares issued
and 18,053,747 shares outstanding at December 31, 2015 |
0.2 |
|
|
0.2 |
|
| Additional paid in capital |
1,041.2 |
|
|
1,037.3 |
|
| Retained earnings |
51.9 |
|
|
15.8 |
|
| Treasury stock, at cost, 4,346,466 shares at June 30, 2016 and 4,237,433 shares at
December 31, 2015, respectively |
(255.1 |
) |
|
(246.5 |
) |
| Accumulated other comprehensive loss |
(29.9 |
) |
|
(31.7 |
) |
| Total stockholders' equity |
808.3 |
|
|
775.1 |
|
| Total |
$ |
1,421.6 |
|
|
$ |
1,247.6 |
|
1 Please refer to the Company's Form 10-Q for the quarter ended June 30, 2016 for detail regarding the items in
the table.
| |
| Reconciliation of Non-GAAP Measures -
Consolidated |
| (Unaudited) |
| (In millions of dollars, except share and per share
amounts) |
| |
|
|
|
|
|
|
| |
Quarterly |
| |
2Q16 |
1Q16 |
4Q15 |
3Q15 |
2Q15 |
1Q15 |
| |
|
|
|
|
|
|
| GAAP net income (loss) |
$ |
26.0 |
|
$ |
26.3 |
|
$ |
13.3 |
|
$ |
22.1 |
|
$ |
20.2 |
|
$ |
(292.2 |
) |
| Interest expense |
(5.5 |
) |
(3.7 |
) |
(4.2 |
) |
(4.9 |
) |
(5.2 |
) |
(9.8 |
) |
| Other income (expense), net |
(10.7 |
) |
0.3 |
|
(1.7 |
) |
(0.9 |
) |
0.4 |
|
0.4 |
|
| Income tax (provision) benefit |
(15.7 |
) |
(15.1 |
) |
(16.0 |
) |
(12.6 |
) |
(12.0 |
) |
175.8 |
|
| GAAP operating income (loss) |
57.9 |
|
44.8 |
|
35.2 |
|
40.5 |
|
37.0 |
|
(458.6 |
) |
| Mark-to-market (gains) losses |
(10.9 |
) |
(4.0 |
) |
(4.3 |
) |
1.7 |
|
1.5 |
|
4.5 |
|
| Union VEBA related NRR (gains) losses 1 |
— |
|
(0.1 |
) |
2.5 |
|
(2.9 |
) |
1.6 |
|
492.2 |
|
| Other operating NRR (gains) losses 2,3 |
(1.2 |
) |
5.9 |
|
(2.1 |
) |
(2.3 |
) |
4.2 |
|
(0.2 |
) |
| Operating income, excluding operating NRR items |
45.8 |
|
46.6 |
|
31.3 |
|
37.0 |
|
44.3 |
|
37.9 |
|
| Depreciation and Amortization |
9.0 |
|
8.7 |
|
8.2 |
|
8.1 |
|
8.1 |
|
8.0 |
|
| Adjusted EBITDA 4 |
$ |
54.8 |
|
$ |
55.3 |
|
$ |
39.5 |
|
$ |
45.1 |
|
$ |
52.4 |
|
$ |
45.9 |
|
| |
|
|
|
|
|
|
| GAAP net income (loss) |
$ |
26.0 |
|
$ |
26.3 |
|
$ |
13.3 |
|
$ |
22.1 |
|
$ |
20.2 |
|
$ |
(292.2 |
) |
| Operating NRR Items |
(12.1 |
) |
1.8 |
|
(3.9 |
) |
(3.5 |
) |
7.3 |
|
496.5 |
|
| Tax impact of above NRR Items |
4.6 |
|
(0.6 |
) |
(0.4 |
) |
1.5 |
|
(2.6 |
) |
(184.5 |
) |
| NRR tax (benefit) charge |
— |
|
— |
|
1.8 |
|
(0.7 |
) |
(1.8 |
) |
(1.5 |
) |
| Adjusted net income |
$ |
18.5 |
|
$ |
27.5 |
|
$ |
10.8 |
|
$ |
19.4 |
|
$ |
23.1 |
|
$ |
18.3 |
|
| |
|
|
|
|
|
|
| GAAP earnings (losses) per diluted share 5 |
$ |
1.43 |
|
$ |
1.44 |
|
$ |
0.73 |
|
$ |
1.21 |
|
$ |
1.11 |
|
$ |
(16.85 |
) |
| Adjusted earnings per diluted share 5 |
$ |
1.02 |
|
$ |
1.51 |
|
$ |
0.60 |
|
$ |
1.07 |
|
$ |
1.27 |
|
$ |
1.01 |
|
| |
|
|
|
|
|
|
| 1 Includes net periodic gains, effect of terminating the
defined benefit accounting for the Union VEBA, and related accrual adjustments. |
| 2 Other operating non-run-rate items primarily represent
the impact of non-cash net periodic benefit cost (income) related to the salaried VEBA, adjustments to plant-level LIFO, lower
of cost or market, environmental expenses, and workers' compensation cost (benefit) due to discounting. |
| 3 NRR is an abbreviation for Non-Run-Rate; NRR items are
pre-tax. |
| 4 Adjusted EBITDA = Consolidated Operating Income before
non-run-rate plus Depreciation and Amortization. |
| 5 Diluted shares for EPS calculated using treasury
method. |
| |
Investor Relations and Public Relations Contact: Melinda C. Ellsworth Kaiser Aluminum Corporation (949) 614-1757
