CLEVELAND, Nov. 3, 2015 /PRNewswire/ -- Aleris Corporation today reported results for the three and nine months ended September 30, 2015. Except as otherwise indicated, all amounts reflect the divested recycling and extrusions businesses as discontinued operations.
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Third Quarter Summary
Fourth Quarter Outlook
"We delivered a solid quarter driven by increased volume in high-value aerospace and automotive product lines," Sean Stack, Aleris President and Chief Executive Officer, said. "Coupled with the success of a number of well-timed investments, including our aerospace plate mill in Zhenjiang, China, we continue to focus aggressively on optimizing operational performance across our global footprint, including the successful integration of the Nichols acquisition in North America."
For the three months ended |
For the nine months ended |
||||||||||||||
September |
September |
September |
September |
||||||||||||
(Dollars in millions, metric tons in thousands) |
(unaudited) |
||||||||||||||
Metric tons of finished product shipped (1) |
223 |
223 |
633 |
600 |
|||||||||||
Revenue |
$ |
761 |
$ |
809 |
$ |
2,281 |
$ |
2,149 |
|||||||
Commercial margin |
$ |
315 |
$ |
316 |
$ |
926 |
$ |
873 |
|||||||
Segment income |
$ |
72 |
$ |
65 |
$ |
191 |
$ |
186 |
|||||||
(Loss) income from continuing operations |
$ |
(21) |
$ |
8 |
$ |
(54) |
$ |
(38) |
|||||||
Adjusted EBITDA |
$ |
68 |
$ |
55 |
$ |
183 |
$ |
138 |
|||||||
(1) Metric tons of finished product shipped excludes slab and billet sales from the Voerde and Koblenz cast houses. |
Third Quarter 2015 Results
Adjusted EBITDA totaled $68 million for the third quarter of 2015 compared to $55 million for the third quarter of 2014. Results were impacted by the following:
Loss from continuing operations for the third quarter of 2015 was $21 million compared to income from continuing operations of $8 million for the third quarter of 2014. Offsetting the impact of higher Adjusted EBITDA were:
Partially offsetting these unfavorable items were:
In the third quarter of 2015, $54 million was spent on capital expenditures; the majority being spent on the Lewisport upgrade and expansion project.
During the quarter, Aleris purchased $125 million principal amount of outstanding Senior Notes pursuant to an Asset Sale Offer. As of September 30, 2015 Aleris had liquidity of $612 million, which consisted of approximately $448 million of availability under our ABL Facility plus approximately $165 million of cash on hand.
North America
North America segment income increased to $36 million in the third quarter of 2015 from $26 million in the third quarter of 2014. Segment Adjusted EBITDA increased to $34 million in the third quarter of 2015 from $31 million in the third quarter of 2014. Performance drivers included:
The increase in segment income was driven by the factors that drove the increase in segment Adjusted EBITDA, as well as a $4 million favorable variance in metal price lag and the impact of recording the acquired inventory of Nichols at fair value, which increased cost of sales by $3 million in the third quarter of 2014.
Europe
Europe segment income was $35 million in the third quarter of 2015 compared to $38 million in the third quarter of 2014. Segment Adjusted EBITDA increased to $41 million in the third quarter of 2015 from $34 million in the third quarter of 2014. Performance drivers included:
The decrease in segment income was driven by a $10 million unfavorable variance in metal price lag due to decreasing aluminum prices during the third quarter of 2015 compared to increasing prices during the prior year, partially offset by the factors that drove the increase in segment Adjusted EBITDA.
Asia Pacific
Our Asia Pacific segment reported segment income and segment Adjusted EBITDA of $1 million. Asia Pacific continued to ramp-up production and shipped approximately 5,472 tons of plate, including aerospace plate, generating revenue of $24 million during the third quarter of 2015. As Asia Pacific's 2014 results were classified as start-up costs, comparisons to the prior year are not meaningful. Asia Pacific's start-up costs totaled $2 million in the third quarter of 2014.
Year-to-Date Results
Key financial highlights for the nine months ended September 30, 2015 include:
Outlook
We estimate fourth quarter 2015 segment income and Adjusted EBITDA will be lower than the third quarter of 2015, due to normal seasonality, and in line with the the fourth quarter of 2014 after excluding $4 million of one time benefits associated with electricity tax and carbon monoxide emissions credits that impacted the prior year. Factors influencing anticipated fourth quarter 2015 performance include:
Capital expenditures during the fourth quarter of 2015 are expected to be significantly higher than the fourth quarter of 2014 and higher than third quarter of 2015 as work continues on upgrading and expanding our capabilities in Lewisport, Kentucky. We expect capital spending of approximately $275 million to $300 million in 2015, including the amounts spent in the first three quarters of the year.
Conference Call and Webcast Information
Aleris will hold a conference call and webcast on November 3, 2015 at 9:00 a.m. Eastern Time. Sean M. Stack, president and chief executive officer, and Eric M. Rychel, executive vice president, chief financial officer and treasurer, will host the call to discuss results.
The webcast can be accessed through the Company's website, www.aleris.com. The conference call can be accessed by dialing 1-877-870-4263 or 1-412-317-0790 (for international callers) and ask for the "Aleris call". A replay of the call will be posted on the Company's website in the Investor Relations section.
Forward-Looking Statements
Certain statements contained in this press release are "forward-looking statements" within the meaning of the federal securities laws. Statements under headings with "Outlook" in the title and statements about our beliefs and expectations and statements containing the words "may," "could," "would," "should," "will," "believe," "expect," "anticipate," "plan," "estimate," "target," "project," "look forward to," "intend" and similar expressions intended to connote future events and circumstances constitute forward-looking statements. Forward-looking statements include statements about, among other things, future costs and prices of commodities, production volumes, industry trends, anticipated cost savings, anticipated benefits from new products, facilities, acquisitions or divestitures, projected results of operations, achievement of production efficiencies, capacity expansions, future prices and demand for our products and estimated cash flows and sufficiency of cash flows to fund capital expenditures. Forward-looking statements involve known and unknown risks and uncertainties, which could cause actual results to differ materially from those contained in or implied by any forward-looking statement. Some of the important factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to, the following: (1) our ability to successfully implement our business strategy; (2) the success of past and future acquisitions and divestitures; (3) the cyclical nature of the aluminum industry, material adverse changes in the aluminum industry or our end-use segments, such as global and regional supply and demand conditions for aluminum and aluminum products, and changes in our customers' industries; (4) our ability to enter into effective metal, energy and other commodity derivatives or arrangements with customers to manage effectively our exposure to commodity price fluctuations and changes in the pricing of metals, especially London Metal Exchange-based aluminum prices; (5) increases in the cost of raw materials and energy; (6) our ability to generate sufficient cash flows to fund our capital expenditure requirements and to meet our debt service obligations; (7) our ability to fulfill our substantial capital investment requirements; (8) our ability to retain the services of certain members of our management; (9) our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur; (10) the loss of order volumes from any of our largest customers; (11) our ability to retain customers, a substantial number of whom do not have long-term contractual arrangements with us; (12) competitor pricing activity, competition of aluminum with alternative materials and the general impact of competition in the industry segments we serve; (13) risks of investing in and conducting operations on a global basis, including political, social, economic, currency and regulatory factors; (14) variability in general economic conditions on a global or regional basis; (15) current environmental liabilities and the cost of compliance with and liabilities under health and safety laws; (16) labor relations (i.e., disruptions, strikes or work stoppages) and labor costs; (17) our levels of indebtedness and debt service obligations, including changes in our credit ratings, material increases in our cost of borrowing or the failure of financial institutions to fulfill their commitments to us under committed credit facilities; (18) our ability to access the credit and capital markets; (19) the possibility that we may incur additional indebtedness in the future; (20) limitations on operating our business as a result of covenant restrictions under our indebtedness, and our ability to pay amounts due under the Senior Notes; and (21) other factors discussed in our filings with the Securities and Exchange Commission, including the sections entitled "Risk Factors" contained therein. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to publicly update or revise any forward-looking statements, whether in response to new information, futures events or otherwise, except as otherwise required by law.
Non-GAAP Financial Measures
In addition to the results reported in accordance with GAAP, this press release includes information regarding certain non-GAAP financial measures. Management uses EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin as performance metrics and believes these measures provide additional information commonly used by the holders of the Senior Notes and parties to our 2015 ABL Facility with respect to the ongoing performance of our underlying business activities, as well as our ability to meet our future debt service, capital expenditures and working capital needs. In addition, EBITDA with certain adjustments is a component of certain covenants under the indentures governing Aleris International's senior notes. Adjusted EBITDA, including the impacts of metal price lag, is a component of certain financial covenants under the credit agreement governing the 2015 ABL Facility. Management also uses commercial margin as a performance metric and believes that it provides useful information regarding the performance of our segments because it measures the price at which we sell our aluminum products above the hedged cost of the metal and the effects of metal price lag, thereby reflecting the value-added components of our commercial activities independent of aluminum prices which we cannot control.
Our EBITDA calculations represent net income and loss attributable to Aleris Corporation before interest income and expense, provision for and benefit from income taxes, depreciation and amortization, and income from discontinued operations, net of tax. Adjusted EBITDA is defined as EBITDA excluding metal price lag, unrealized gains and losses on derivative financial instruments, restructuring charges, the impact of recording inventory and other items at fair value through purchase accounting, currency exchange gains and losses on debt, stock-based compensation expense, start-up costs and certain other gains and losses. Segment Adjusted EBITDA represents Adjusted EBITDA on a per segment basis. EBITDA as defined in the indentures governing Aleris International's senior notes also limits the amount of adjustments for cost savings, operational improvement and synergies for the purpose of determining our compliance with such covenants. Adjusted EBITDA as defined under the 2015 ABL Facility also limits the amount of adjustments for restructuring charges incurred and requires additional adjustments be made if certain annual pension funding levels are exceeded. Commercial margin represents revenues less the hedged cost of metal and the effects of metal price lag.
EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin, as we use them, may not be comparable to similarly titled measures used by other companies. We calculate EBITDA, Adjusted EBITDA and segment Adjusted EBITDA by eliminating the impact of a number of items we do not consider indicative of our ongoing operating performance, and certain other items. You are encouraged to evaluate each adjustment and the reasons we consider it appropriate for supplemental analysis. However, EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin are not financial measurements recognized under GAAP, and when analyzing our operating performance, investors should use EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin in addition to, and not as an alternative for, net income and loss attributable to Aleris Corporation, operating income and loss, or any other performance measure derived in accordance with GAAP, or in addition to, and not as an alternative for, cash flow from operating activities as a measure of our liquidity. EBITDA, Adjusted EBITDA, segment Adjusted EBITDA and commercial margin have limitations as analytical tools, and they should not be considered in isolation, or as a substitute for, or superior to, our measures of financial performance prepared in accordance with GAAP.
About Aleris
Aleris is a privately held, global leader in aluminum rolled products production. Headquartered in Cleveland, Ohio, Aleris operates 13 production facilities in North America, Europe and Asia. For more information, visit www.aleris.com.
The information disclosed in this press release is believed by Aleris to be accurate as of the date hereof. Aleris expressly disclaims any duty to update the information contained in this press release. Persons engaging in any transactions with Aleris or in Aleris's securities are cautioned that there may exist other material information regarding Aleris that is not publicly available.
Aleris Corporation |
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For the three months ended |
For the nine months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||
Revenues |
$ 760.7 |
$ 809.0 |
$ 2,280.8 |
$ 2,149.3 |
||||
Cost of sales |
702.8 |
724.4 |
2,109.0 |
1,953.7 |
||||
Gross profit |
57.9 |
84.6 |
171.8 |
195.6 |
||||
Selling, general and administrative expenses |
44.9 |
53.6 |
158.7 |
155.9 |
||||
Restructuring charges |
1.0 |
0.6 |
8.7 |
1.5 |
||||
Losses on derivative financial instruments |
2.0 |
10.0 |
2.4 |
11.7 |
||||
Other operating expense, net |
0.6 |
0.1 |
1.9 |
0.1 |
||||
Operating income |
9.4 |
20.3 |
0.1 |
26.4 |
||||
Interest expense, net |
23.6 |
27.3 |
74.7 |
80.4 |
||||
Other expense (income), net |
7.8 |
(12.2) |
(5.1) |
(13.1) |
||||
(Loss) income from continuing operations before income taxes |
(22.0) |
5.2 |
(69.5) |
(40.9) |
||||
Benefit from income taxes |
(1.0) |
(3.3) |
(16.0) |
(2.7) |
||||
(Loss) income from continuing operations |
(21.0) |
8.5 |
(53.5) |
(38.2) |
||||
(Loss) income from discontinued operations, net of tax |
(4.4) |
18.2 |
115.0 |
30.5 |
||||
Net (loss) income |
(25.4) |
26.7 |
61.5 |
(7.7) |
||||
Net income from discontinued operations attributable to noncontrolling interest |
- |
0.2 |
0.1 |
0.9 |
||||
Net (loss) income attributable to Aleris Corporation |
$ (25.4) |
$ 26.5 |
$ 61.4 |
$ (8.6) |
Aleris Corporation |
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For the three months ended |
For the nine months ended |
||||||
September 30, |
September 30, |
September 30, |
September 30, |
||||
Segment income (loss): |
|||||||
North America |
$ 36.4 |
$ 26.4 |
$ 93.0 |
$ 75.8 |
|||
Europe |
35.1 |
38.1 |
99.5 |
110.6 |
|||
Asia Pacific |
0.6 |
- |
(1.2) |
- |
|||
Total segment income |
72.1 |
64.5 |
191.3 |
186.4 |
|||
Depreciation and amortization |
(27.7) |
(33.6) |
(92.9) |
(87.8) |
|||
Other corporate general and administrative expenses |
(8.0) |
(16.5) |
(41.1) |
(49.1) |
|||
Restructuring charges |
(1.0) |
(0.6) |
(8.7) |
(1.5) |
|||
Interest expense, net |
(23.6) |
(27.3) |
(74.7) |
(80.4) |
|||
Unallocated (losses) gains on derivative financial instruments |
(21.5) |
13.7 |
(26.0) |
4.0 |
|||
Unallocated currency exchange (losses) gains |
(4.8) |
8.5 |
3.4 |
7.7 |
|||
Start-up costs |
(6.8) |
(3.5) |
(14.6) |
(19.8) |
|||
Other expense, net |
(0.7) |
- |
(6.2) |
(0.4) |
|||
(Loss) income from continuing operations before income taxes |
$ (22.0) |
$ 5.2 |
$ (69.5) |
$ (40.9) |
Aleris Corporation |
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For the three months ended |
For the nine months ended |
||||||
September 30, |
September 30, |
September 30, |
September 30, |
||||
Metric tons of finished product shipped: |
|||||||
North America |
137.3 |
141.6 |
384.4 |
361.0 |
|||
Europe (1) |
81.0 |
77.8 |
234.7 |
231.9 |
|||
Asia Pacific |
5.5 |
3.8 |
16.1 |
8.9 |
|||
Intersegment shipments |
(0.7) |
(0.4) |
(1.8) |
(1.4) |
|||
Total metric tons of finished product shipped |
223.1 |
222.8 |
633.4 |
600.4 |
|||
Revenues: |
|||||||
North America |
$ 405.8 |
$ 468.0 |
$ 1,225.9 |
$ 1,148.4 |
|||
Europe |
340.1 |
362.3 |
1,024.6 |
1,069.3 |
|||
Asia Pacific |
24.5 |
15.6 |
69.2 |
36.8 |
|||
Intersegment revenues |
(9.7) |
(36.9) |
(38.9) |
(105.2) |
|||
Total revenues |
$ 760.7 |
$ 809.0 |
$ 2,280.8 |
$ 2,149.3 |
|||
Commercial margin: |
|||||||
North America |
$ 160.2 |
$ 164.6 |
$ 470.1 |
$ 419.6 |
|||
Europe |
145.3 |
151.5 |
427.8 |
453.2 |
|||
Asia Pacific |
9.7 |
- |
28.6 |
- |
|||
Total commercial margin |
$ 315.2 |
$ 316.1 |
$ 926.5 |
$ 872.8 |
|||
Commercial margin per metric ton: |
|||||||
North America |
$ 1,167.4 |
$ 1,162.5 |
$ 1,222.9 |
$ 1,162.3 |
|||
Europe |
1,792.7 |
1,946.7 |
1,823.2 |
1,954.9 |
|||
Asia Pacific |
1,777.7 |
* |
1,780.2 |
* |
|||
Segment Adjusted EBITDA: |
|||||||
North America (2) |
$ 34.2 |
$ 31.0 |
$ 97.1 |
$ 76.9 |
|||
Europe |
41.0 |
34.2 |
115.2 |
90.2 |
|||
Asia Pacific |
0.6 |
- |
(1.2) |
- |
|||
Corporate |
(7.6) |
(10.1) |
(27.6) |
(29.1) |
|||
Total Adjusted EBITDA |
$ 68.2 |
$ 55.1 |
$ 183.5 |
$ 138.0 |
|||
Segment Adjusted EBITDA per metric ton: |
|||||||
North America |
$ 249.0 |
$ 219.1 |
$ 252.7 |
$ 213.0 |
|||
Europe |
505.5 |
438.9 |
490.7 |
389.0 |
|||
Asia Pacific |
101.6 |
* |
(77.7) |
* |
|||
Aleris Corporation |
305.5 |
247.3 |
289.6 |
229.9 |
|||
* Result is not meaningful. |
|||||||
(1) Finished product shipped excludes slab and billet sales from the Voerde and Koblenz cast houses. |
|||||||
(2) During the first quarter of 2015, in order to improve consistency in the calculation of metal price lag across the segments, the North America segment modified its calculation of metal price lag to include the impact of the Midwest Premium. This change increased the amount of unfavorable metal price lag reported for the North America segment for the three and nine months ended September 30, 2015 by approximately $4.8 million and $14.8 million, respectively. |
Aleris Corporation |
||||
ASSETS |
September 30, 2015 |
December 31, 2014 |
||
Current Assets |
||||
Cash and cash equivalents |
$ 164.8 |
$ 28.6 |
||
Accounts receivable (net of allowances of $5.5 and $6.5 at September 30, 2015 and December 31, 2014, respectively) |
298.4 |
271.0 |
||
Inventories |
500.1 |
627.9 |
||
Deferred income taxes |
28.1 |
28.1 |
||
Prepaid expenses and other current assets |
32.3 |
44.9 |
||
Assets of discontinued operations - current |
- |
385.6 |
||
Total Current Assets |
1,023.7 |
1,386.1 |
||
Property, plant and equipment, net |
1,036.1 |
942.9 |
||
Intangible assets, net |
39.4 |
44.0 |
||
Deferred income taxes |
146.7 |
146.7 |
||
Other long-term assets |
91.4 |
72.4 |
||
Assets of discontinued operations - long-term |
- |
269.8 |
||
Total Assets |
$ 2,337.3 |
$ 2,861.9 |
||
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
Current Liabilities |
||||
Accounts payable |
$ 280.2 |
$ 268.2 |
||
Accrued liabilities |
229.8 |
183.3 |
||
Deferred income taxes |
6.2 |
6.2 |
||
Current portion of long-term debt |
13.5 |
3.3 |
||
Liabilities of discontinued operations - current |
- |
195.9 |
||
Total Current Liabilities |
529.7 |
656.9 |
||
Long-term debt |
1,115.0 |
1,474.9 |
||
Deferred income taxes |
63.9 |
0.4 |
||
Accrued pension benefits |
164.0 |
178.7 |
||
Accrued postretirement benefits |
44.6 |
46.4 |
||
Other long-term liabilities |
70.0 |
49.2 |
||
Liabilities of discontinued operations - long-term |
- |
156.4 |
||
Total Long-Term Liabilities |
1,457.5 |
1,906.0 |
||
Redeemable noncontrolling interest |
- |
5.7 |
||
Stockholders' Equity |
||||
Common stock; par value $.01; 45,000,000 shares authorized and 31,695,210 and 31,281,513 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively |
0.3 |
0.3 |
||
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued |
- |
- |
||
Additional paid-in capital |
423.1 |
414.1 |
||
Retained earnings |
100.3 |
39.1 |
||
Accumulated other comprehensive loss |
(173.6) |
(160.9) |
||
Total Aleris Corporation Equity |
350.1 |
292.6 |
||
Noncontrolling interest |
- |
0.7 |
||
Total Equity |
350.1 |
293.3 |
||
Total Liabilities and Equity |
$ 2,337.3 |
$ 2,861.9 |
Aleris Corporation |
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For the three months ended |
For the nine months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||
Operating activities |
||||||||
Net (loss) income |
$ (25.4) |
$ 26.7 |
$ 61.5 |
$ (7.7) |
||||
Adjustments to reconcile net (loss) income to net cash provided (used) by operating activities: |
||||||||
Depreciation and amortization |
27.7 |
41.5 |
92.9 |
112.2 |
||||
Provision for (benefit from) deferred income taxes |
4.0 |
(6.5) |
63.1 |
(4.2) |
||||
Stock-based compensation (benefit) expense |
(1.5) |
2.8 |
3.9 |
11.0 |
||||
Unrealized losses (gains) on derivative financial instruments |
21.3 |
(15.9) |
23.6 |
(7.4) |
||||
Currency exchange losses (gains) on debt |
4.8 |
(7.0) |
(4.1) |
(7.1) |
||||
Amortization of debt issuance costs |
1.7 |
1.9 |
4.9 |
5.8 |
||||
Net loss (gain) on sale of discontinued operations |
0.4 |
- |
(196.9) |
- |
||||
Other |
3.8 |
(0.8) |
(6.0) |
2.6 |
||||
Changes in operating assets and liabilities: |
||||||||
Change in accounts receivable |
46.5 |
(44.2) |
(113.3) |
(148.8) |
||||
Change in inventories |
58.2 |
(52.8) |
116.8 |
(109.5) |
||||
Change in other assets |
(0.1) |
(3.2) |
(0.2) |
(2.7) |
||||
Change in accounts payable |
(9.4) |
20.1 |
26.7 |
109.3 |
||||
Change in accrued liabilities |
12.8 |
8.1 |
(1.5) |
9.8 |
||||
Net cash provided (used) by operating activities |
144.8 |
(29.3) |
71.4 |
(36.7) |
||||
Investing activities |
||||||||
Payments for property, plant and equipment |
(54.4) |
(30.6) |
(175.1) |
(109.0) |
||||
Proceeds from the sale of businesses, net of cash transferred |
11.8 |
- |
587.1 |
- |
||||
Purchase of a business |
- |
2.6 |
- |
(107.4) |
||||
Other |
0.6 |
2.2 |
0.2 |
8.1 |
||||
Net cash provided (used) by investing activities |
(42.0) |
(25.8) |
412.2 |
(208.3) |
||||
Financing activities |
||||||||
Proceeds from the ABL facilities |
- |
97.0 |
151.0 |
337.0 |
||||
Payments on the ABL facilities |
- |
(60.0) |
(375.0) |
(129.0) |
||||
Payments on the Senior Notes |
(125.0) |
- |
(125.0) |
- |
||||
Proceeds from the Zhenjiang revolver |
- |
8.3 |
8.5 |
19.8 |
||||
Payments on the Zhenjiang revolver |
(2.7) |
- |
(5.6) |
- |
||||
Net (payments on) proceeds from other long-term debt |
(0.8) |
(0.3) |
(0.4) |
0.4 |
||||
Debt issuance costs |
(0.6) |
- |
(4.4) |
- |
||||
Other |
(0.1) |
(0.8) |
(1.1) |
(1.8) |
||||
Net cash (used) provided by financing activities |
(129.2) |
(44.2) |
(352.0) |
226.4 |
||||
Effect of exchange rate differences on cash and cash equivalents |
0.5 |
(3.2) |
(2.8) |
(3.7) |
||||
Net (decrease) increase in cash and cash equivalents |
(25.9) |
(14.1) |
128.8 |
(22.3) |
||||
Cash and cash equivalents at beginning of period |
190.7 |
51.9 |
36.0 |
60.1 |
||||
Cash and cash equivalents at end of period |
164.8 |
37.8 |
164.8 |
37.8 |
||||
Cash and cash equivalents included within assets of discontinued operations - current |
- |
(12.3) |
- |
(12.3) |
||||
Cash and cash equivalents of continuing operations |
$ 164.8 |
$ 25.5 |
$ 164.8 |
$ 25.5 |
Aleris Corporation |
||||||||
For the three months ended |
For the nine months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||
Adjusted EBITDA from continuing operations |
$ 68.2 |
$ 55.1 |
$ 183.5 |
$ 138.0 |
||||
Unrealized (losses) gains on derivative financial instruments of continuing operations |
(21.3) |
13.7 |
(25.7) |
4.0 |
||||
Impact of recording inventory at fair value through purchase accounting |
- |
(2.5) |
- |
(5.6) |
||||
Restructuring charges |
(1.0) |
(0.6) |
(8.7) |
(1.5) |
||||
Unallocated currency exchange (losses) gains on debt |
(4.8) |
7.1 |
3.1 |
7.3 |
||||
Stock-based compensation benefit (expense) |
1.5 |
(2.8) |
(3.9) |
(11.0) |
||||
Start-up costs |
(6.8) |
(3.5) |
(14.6) |
(19.8) |
||||
(Unfavorable) favorable metal price lag |
(3.7) |
1.9 |
(19.8) |
24.9 |
||||
Other |
(2.8) |
(2.6) |
(15.9) |
(9.9) |
||||
EBITDA from continuing operations |
29.3 |
65.8 |
98.0 |
126.4 |
||||
Interest expense, net |
(23.6) |
(27.3) |
(74.7) |
(80.4) |
||||
Benefit from income taxes |
1.0 |
3.3 |
16.0 |
2.7 |
||||
Depreciation and amortization from continuing operations |
(27.7) |
(33.6) |
(92.9) |
(87.8) |
||||
(Loss) income from discontinued operations, net of tax |
(4.4) |
18.2 |
115.0 |
30.5 |
||||
Net (loss) income attributable to Aleris Corporation |
(25.4) |
26.4 |
61.4 |
(8.6) |
||||
Net income from discontinued operations attributable to noncontrolling interest |
- |
0.2 |
0.1 |
0.9 |
||||
Net (loss) income |
(25.4) |
26.6 |
61.5 |
(7.7) |
||||
Depreciation and amortization |
27.7 |
41.5 |
92.9 |
112.2 |
||||
Provision for (benefit from) deferred income taxes |
4.0 |
(6.5) |
63.1 |
(4.2) |
||||
Stock-based compensation (benefit) expense |
(1.5) |
2.8 |
3.9 |
11.0 |
||||
Unrealized losses (gains) on derivative financial instruments |
21.3 |
(15.9) |
23.6 |
(7.4) |
||||
Currency exchange losses (gains) on debt |
4.8 |
(7.0) |
(4.1) |
(7.1) |
||||
Amortization of debt issuance costs |
1.7 |
1.9 |
4.9 |
5.8 |
||||
Net loss (gain) on sale of discontinued operations |
0.4 |
- |
(196.9) |
- |
||||
Other |
3.8 |
(0.8) |
(6.0) |
2.6 |
||||
Change in operating assets and liabilities: |
||||||||
Change in accounts receivable |
46.5 |
(44.2) |
(113.3) |
(148.8) |
||||
Change in inventories |
58.2 |
(52.8) |
116.8 |
(109.5) |
||||
Change in other assets |
(0.1) |
(3.2) |
(0.2) |
(2.7) |
||||
Change in accounts payable |
(9.4) |
20.1 |
26.7 |
109.3 |
||||
Change in accrued liabilities |
12.8 |
8.1 |
(1.5) |
9.8 |
||||
Net cash provided (used) by operating activities |
$ 144.8 |
$ (29.4) |
$ 71.4 |
$ (36.7) |
Aleris Corporation |
||||||||
For the three months ended |
For the nine months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||
North America |
||||||||
Segment income |
$ 36.4 |
$ 26.4 |
$ 93.0 |
$ 75.8 |
||||
Impact of recording inventory at fair value through purchase accounting |
- |
2.5 |
- |
5.6 |
||||
(Favorable) unfavorable metal price lag (1) |
(2.2) |
2.1 |
4.1 |
(4.4) |
||||
Segment Adjusted EBITDA (2) |
$ 34.2 |
$ 31.0 |
$ 97.1 |
$ 76.9 |
||||
Europe |
||||||||
Segment income |
$ 35.1 |
$ 38.1 |
$ 99.5 |
$ 110.6 |
||||
Unfavorable (favorable) metal price lag |
5.9 |
(4.0) |
15.6 |
(20.4) |
||||
Segment Adjusted EBITDA (2) |
$ 41.0 |
$ 34.2 |
$ 115.2 |
$ 90.2 |
||||
Asia Pacific |
||||||||
Segment income (loss) |
$ 0.6 |
$ - |
$ (1.2) |
$ - |
||||
Segment Adjusted EBITDA (3) |
0.6 |
- |
(1.2) |
- |
||||
(1) During the first quarter of 2015, in order to improve consistency in the calculation of metal price lag across the segments, the North America segment modified its calculation of metal price lag to include the impact of the Midwest Premium. This change increased the amount of unfavorable metal price lag reported for the North America segment for the three and nine months ended September 30, 2015 by approximately $4.8 million and $14.8 million, respectively. |
||||||||
(2) Amounts may not foot as they represent the calculated totals based on actual amounts and not the rounded amounts presented in this table. |
||||||||
(3) There was no difference between segment income and segment Adjusted EBITDA for this segment. |
Aleris Corporation |
||||||||
For the three months ended |
For the nine months ended |
|||||||
September 30, |
September 30, |
September 30, |
September 30, |
|||||
North America |
||||||||
Revenues |
$ 405.8 |
$ 468.0 |
$ 1,225.9 |
$ 1,148.4 |
||||
Hedged cost of metal |
(243.4) |
(305.5) |
(759.9) |
(724.4) |
||||
(Favorable) unfavorable metal price lag (1) |
(2.2) |
2.1 |
4.1 |
(4.4) |
||||
Commercial margin |
$ 160.2 |
$ 164.6 |
$ 470.1 |
$ 419.6 |
||||
Europe |
||||||||
Revenues |
$ 340.1 |
$ 362.3 |
$ 1,024.6 |
$ 1,069.3 |
||||
Hedged cost of metal |
(200.7) |
(206.8) |
(612.4) |
(595.7) |
||||
Unfavorable (favorable) metal price lag |
5.9 |
(4.0) |
15.6 |
(20.4) |
||||
Commercial margin |
$ 145.3 |
$ 151.5 |
$ 427.8 |
$ 453.2 |
||||
Asia Pacific |
||||||||
Revenues |
$ 24.5 |
$ 15.6 |
$ 69.2 |
$ 36.8 |
||||
Hedged cost of metal |
(14.8) |
(15.6) |
(40.6) |
(36.8) |
||||
Commercial margin |
$ 9.7 |
$ - |
$ 28.6 |
$ - |
||||
(1) During the first quarter of 2015, in order to improve consistency in the calculation of metal price lag across the segments, the North America segment modified its calculation of metal price lag to include the impact of the Midwest Premium. This change increased the amount of unfavorable metal price lag reported for the North America segment for the three and nine months ended September 30, 2015 by approximately $4.8 million and $14.8 million, respectively. |
SOURCE Aleris
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