Century reports Q1 2016 financial results: Sales decline but liquidity improves

Century Aluminum Company reported a net loss of $16.2 million ($0.19 per share) for the first quarter of 2016. Results were favourably impacted by a $5.8 million ($0.06 per share) lower of cost or market inventory adjustment. After consideration of this item, the company reported an adjusted net loss of $22.0 million and an adjusted loss per share of $0.23 for the first quarter.

For the first quarter of 2015, Century reported net income of $73.8 million. Results included $6.5 million for an unrealized gain on fair value of contingent consideration related to the Mt. Holly acquisition and were negatively impacted by $1.6 million for signing bonuses related to a new labor agreement in Iceland and $1.0 million related to the separation of a former senior executive.

Sales for the first quarter of 2016 were $318.9 million compared with $587.9 million for the first quarter of 2015. Shipments of primary aluminium for the first quarter of 2016 were 182,619 tonnes compared with 245,258 tonnes shipped in the first quarter of 2015.

At the end of the first quarter of 2016, we had $126 million in cash and $87 million of revolver availability.

Net cash provided by operating activities in the first quarter of 2016 was $14.9 million compared to net cash provided of $116.3 million in the first quarter of 2015. Cash and cash equivalents increased $11.1 million during the first quarter of 2016 compared to an increase in cash and cash equivalents of $63.2 million in the first quarter of 2015. Century received $12.5 million in the first quarter of 2016 as a result of the earnout provision related to the Mt. Holly acquisition.

"We are pleased with the company's operating and financial results in what continues to be a challenging environment," commented Michael A. Bless, President and Chief Executive Officer. "Our safety performance has been favourable and the plants are all performing with strong operating efficiencies. Financial results were in line with our expectations; we have confirmed we are able to operate effectively within the framework of the reconfiguration actions we took during the second half of 2015. Cash flow was also consistent with our expectations and we again improved our liquidity during the quarter. We remain confident that Century is well positioned in this challenging market and prepared to capitalize on a more favourable environment."