CLEVELAND, March 27, 2015
/PRNewswire/ -- Aleris Corporation today reported results for
the three months and year ended December
31, 2014. Except as otherwise indicated, all amounts
reflect the divestitures of the recycling and extrusions businesses
as discontinued operations.
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Fourth Quarter Summary
- Divestitures of recycling and extrusions, as well as auto body
sheet investment transforming Aleris
- Adjusted EBITDA of $39 million,
up $32 million compared to fourth
quarter of 2013
- Income from continuing operations of $92
million, up $132 million
compared to fourth quarter 2013
- Automotive body sheet volumes up 21 percent versus last
year
- Improved North America
performance driven by higher volumes and increased scrap
spreads
- Stronger U.S. dollar and lower raw material costs positively
impacted Europe results
- Nichols acquisition integration highly successful; raising
synergy capture target to $20
million
- Zhenjiang rolling mill obtained numerous high value plate
qualifications, including Bombardier
- Income from continuing operations includes $127 million of income tax benefits
- Divestitures generated approximately $530 million of cash proceeds in the first
quarter of 2015
- Liquidity of $306 million as of
year end; $574 million after
divestitures
First Quarter Outlook
- Automotive volumes expected to exceed first quarter of
2014
- Zhenjiang rolling mill aerospace qualifications obtained from
Airbus and Boeing
- North America building and
construction and transportation volumes expected to exceed prior
year
- Koblenz aerospace volumes stabilizing, while margins expected
to benefit from a stronger U.S. dollar
- Business Improvement Process expected to drive increased
productivity
- Asia Pacific operations
exiting start-up phase
"I am very pleased that our major strategic investments, which
were successfully completed over the last few years, contributed to
the significant profit growth experienced in the fourth quarter. We
also experienced demand growth across several of our end use
industries, which led to stronger overall volumes in the second
half of the year, particularly in automotive," Steve Demetriou, Aleris chairman and CEO said.
"We believe this volume momentum will continue into 2015
particularly in global automotive, U.S. building and construction
and Asia Pacific high value added
aerospace and commercial plate."
"With the divestitures of our recycling and extrusions
businesses now complete, we look forward to continuing to enhance
our capabilities as we complete our evolution into a pure play
aluminum rolled products company with manufacturing operations in
North America, Europe and Asia
Pacific," Demetriou added.
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For the three months
ended
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For the year
ended
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December
31,
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December
31,
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2014
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2013
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2014
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2013
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(Dollars in millions,
metric tons in thousands)
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(unaudited)
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Metric tons
shipped
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193
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159
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795
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687
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Revenue
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$ 733
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$ 581
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$ 2,882
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$ 2,521
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Commercial
margin
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$ 294
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$ 241
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$ 1,167
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$ 1,052
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Segment
income
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$ 56
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$ 21
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$ 242
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$ 214
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Income (loss) from
continuing operations
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$ 92
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$ (40)
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$ 54
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$ (63)
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Adjusted
EBITDA
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$ 39
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$ 7
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$ 176
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$ 157
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Adjusted EBITDA
including discontinued operations
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$ 59
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$ 26
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$ 266
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$ 236
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Fourth Quarter 2014 Results
Adjusted EBITDA totaled $39
million for the fourth quarter of 2014 compared to
$7 million for the fourth quarter of
2013. Fourth quarter results were impacted by the following:
- higher shipment volumes of 21 percent, due primarily to our
acquisition of Nichols and 21 percent higher automotive volumes, as
well as higher North America
production levels, led to an increase of approximately $12 million of Adjusted EBITDA;
- improved scrap spreads and a favorable supply contract in
North America, as well as lower
raw material prices in Europe,
increased Adjusted EBITDA by approximately $13 million;
- a stronger U.S. dollar contributed to higher margins and
currency exchange gains in Europe,
which increased Adjusted EBITDA by approximately $6 million; and
- pricing pressures due to competitive imports and overcapacity
in plate production reduced rolling margins and decreased Adjusted
EBITDA by approximately $2
million.
Income from continuing operations attributable to Aleris
Corporation for the fourth quarter of 2014 was $92 million compared to a net loss of
$40 million for the fourth quarter of
2013. In addition to the impact of higher Adjusted EBITDA, the
$132 million increase in income from
continuing operations resulted from the following:
- a $117 million higher benefit
from income taxes, primarily due to the reversal of foreign and
domestic valuation allowances against deferred tax assets. These
non-cash reversals resulted from the gain to be recorded on the
sale of the recycling business, as well as the past and expected
future profitability of our operations in Duffel, Belgium; and
- a $3 million favorable variation
in metal price lag (metal price lag represents the difference
between the price of primary aluminum included in our revenues and
the price of aluminum impacting our cost of sales); and
- a $6 million favorable variation
in currency exchange gains on intercompany indebtedness due to a
strengthening U.S. dollar.
Partially offsetting these favorable items were:
- an $11 million increase in
business development costs related to the divestitures of the
recycling and extrusions businesses;
- an $8 million increase in
depreciation expense related to the acquisition of Nichols and the
completion of our recent capital investments;
- a $3 million increase in cost of
sales associated with adjusting acquired Nichols inventory to fair
value;
- a $2 million increase in
restructuring expenses, primarily related to exit costs associated
with closed sites; and
- a $2 million decrease in
unrealized gains on derivative financial instruments as a result of
LME price movements and derivative settlements.
In the fourth quarter of 2014, $38
million was spent on capital expenditures for our continuing
operations.
Aleris had $306 million of
liquidity as of December 31, 2014, which consisted of
approximately $277 million of
availability under the ABL Facility plus approximately $29 million of cash on hand. Subsequent to the
divestitures, as of March 2, 2015,
liquidity was $574 million. The
divestitures together generated $530
million of cash proceeds prior to fees, taxes and working
capital and other adjustments. We expect the working capital
adjustments to deliver additional cash to the Company.
North America
Our North America segment
income increased to $19 million in
the fourth quarter of 2014 from $4
million in the fourth quarter of 2013. Segment Adjusted
EBITDA increased to $19 million in
the fourth quarter of 2014 from $2
million in the fourth quarter of 2013. Performance drivers
included:
- a 43 percent overall volume increase, as well as higher
production levels, increased segment Adjusted EBITDA by
$14 million. The volume increase was
mainly due to the Nichols acquisition and improved demand from the
building and construction and transportation industries, partially
offset by weaker distribution demand;
- improved scrap spreads, resulting from higher aluminum prices
and metal related synergies due to the Nichols acquisition, as well
as a favorable supply contract, increased segment Adjusted EBITDA
by $7 million; and
- competitive import pressure on the distribution end use caused
by the high U.S. Midwest Premium reduced rolling margins, resulting
in a $2 million decrease to segment
Adjusted EBITDA.
The increase in segment income was driven by the factors that
impacted segment Adjusted EBITDA, as well as the impact of
recording the acquired inventory of Nichols at fair value, which
increased cost of sales by $3
million.
Europe
Our Europe segment income was
$37 million in the fourth quarter of
2014 compared to $17 million in the
fourth quarter of 2013. Segment Adjusted EBITDA increased to
$31 million in the fourth quarter of
2014 from $14 million in the fourth
quarter of 2013. Performance drivers included:
- an overall volume decline of 6 percent, partially offset by a
stronger mix of products sold, decreased segment Adjusted EBITDA by
$1 million. Demand for auto body
sheet continued to significantly outpace the prior year, increasing
21 percent compared to the fourth quarter of 2013. Aerospace
shipments increased 1 percent, indicating that the prolonged
inventory overhang impacting aircraft manufacturers over the past
several quarters may be easing. Regional plate and sheet volume
declined 10 percent due to economic weakness in Europe;
- a stronger U.S. dollar had a favorable impact on margins and
translation of U.S. dollar denominated working capital balances,
resulting in a $7 million increase in
segment Adjusted EBITDA;
- favorable developments in raw material prices, including
alloying agents and rolling slab, as well as improved recoveries,
resulted in an increase to segment Adjusted EBITDA of $6 million; and
- one time benefits, including electricity tax and carbon dioxide
emission credits, contributed $4
million to segment Adjusted EBITDA.
The increase in segment income was driven by the factors that
drove the increase in segment Adjusted EBITDA as well as a
$3 million favorable variance in
metal price lag.
Asia Pacific
Asia Pacific continued to
ramp-up production and shipped approximately 3,900 tons of plate,
generating revenue of $16 million
during the fourth quarter of 2014. Losses in excess of
revenue are considered start-up expenses and, as a result, are not
included in Asia Pacific segment
Adjusted EBITDA or segment income.
Full Year Results
Key financial highlights of our continuing operations for the
year ended December 31, 2014
include:
- Revenues of approximately $2.9
billion compared to approximately $2.5 billion for the prior year period. The
increase of 14 percent was attributable to the Nichols acquisition,
higher aluminum prices, including significant increases in regional
premiums, a 32 percent increase in demand for auto body sheet in
Europe, a 21 percent increase in
North America transportation
demand and an increase in Asia
Pacific segment revenues. These increases were partly offset
by weaker aerospace and regional plate and sheet demand in
Europe.
- Adjusted EBITDA increased to $176
million from $157 million
during the prior year as a result of higher volumes due to the
Nichols acquisition, favorable scrap spreads resulting from higher
aluminum prices, a favorable metal supply contract and currency
benefits from a stronger U.S. dollar. Partially offsetting these
items were lower pricing due to pressure from foreign imports and a
weaker mix of products sold due to aerospace inventory destocking
and operational issues.
- Income from continuing operations was approximately
$54 million compared to a loss from
continuing operations of approximately $63
million for the prior year. The increase was driven by the
factors that drove the increase in Adjusted EBITDA as well as a
higher benefit from income taxes and currency exchange gains on
intercompany indebtedness. These items were partially offset by
increased depreciation and interest expense, as well as costs
associated with acquisition and divestitures.
- Capital expenditures of continuing operations decreased to
$121 million from $188 million during the prior year period as many
of our recent major capital investments were completed in
2013.
Outlook
We estimate first quarter 2015 segment income and Adjusted
EBITDA will be sequentially higher than the fourth quarter of 2014
and higher than the first quarter of 2014. Factors influencing
anticipated first quarter 2015 performance include:
- continued growth in demand for auto body sheet in Europe;
- continued improvement in building and construction and
transportation demand, as well as improved rolling margins into
those end uses;
- continued strength of the U.S. dollar expected to improve
aerospace margins;
- stable scrap spreads due to strong U.S. dollar and industry
dynamics;
- lower coil and sheet volumes due to continued weakness in
Europe's economy;
- losses from Asia Pacific as we
have exited the start-up phase and we continue to ramp up
production; and
- recently launched Business Improvement Process and AOS
initiatives expected to drive increased productivity benefits.
Capital expenditures during the first quarter of 2015 are
expected to be higher than the first quarter of 2014 primarily
related to our auto body sheet project in Lewisport, Kentucky. We expect capital
spending of $325 million in 2015.
Conference Call and Webcast Information
Aleris will hold a conference call and webcast on March 27,
2015 at 9:00 a.m. Eastern Time.
Steven J. Demetriou, chairman 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, natural gas 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, commercial margin and segment 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 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 ABL Facility.
Management also uses commercial margin, including segment
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 assets
at fair value through fresh-start and purchase accounting, currency
exchange gains and losses on debt, stock-based compensation
expense, start-up expenses 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 ABL Facility also limits the amount of
adjustments for restructuring charges incurred after June 1, 2010 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. Segment commercial margin
represents commercial margin on a per segment basis.
EBITDA, Adjusted EBITDA, segment Adjusted EBITDA, commercial
margin and segment 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. You are encouraged
to evaluate each adjustment and the reasons we consider it
appropriate for supplemental analysis. However, EBITDA, Adjusted
EBITDA, segment Adjusted EBITDA, commercial margin and segment
commercial margin are not financial measurements recognized under
GAAP, and when analyzing our operating performance, investors
should use EBITDA, Adjusted EBITDA, segment Adjusted EBITDA,
commercial margin and segment 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, commercial margin and segment 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
|
|
Consolidated
Statements of Operations
|
(unaudited)
|
(in
millions)
|
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For the three months
ended
|
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For the year
ended
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|
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December
31,
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December
31,
|
|
|
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2014
|
|
2013
|
|
2014
|
|
2013
|
|
Revenues
|
|
$ 733.0
|
|
$ 581.3
|
|
$ 2,882.4
|
|
$ 2,520.8
|
|
Cost of
sales
|
|
681.1
|
|
560.1
|
|
2,634.9
|
|
2,337.3
|
|
Gross
profit
|
|
51.9
|
|
21.2
|
|
247.5
|
|
183.5
|
|
Selling, general and
administrative expenses
|
|
66.0
|
|
48.9
|
|
221.9
|
|
184.1
|
|
Restructuring charges
(gains)
|
|
1.3
|
|
(0.3)
|
|
2.8
|
|
5.0
|
|
(Gains) losses on
derivative financial instruments
|
|
(0.8)
|
|
(6.3)
|
|
10.9
|
|
(31.5)
|
|
Other operating
expense (income), net
|
|
0.1
|
|
0.3
|
|
0.2
|
|
(0.3)
|
|
Operating (loss)
income
|
|
(14.7)
|
|
(21.4)
|
|
11.7
|
|
26.2
|
|
Interest expense,
net
|
|
27.1
|
|
26.0
|
|
107.4
|
|
97.4
|
|
Other (income)
expense, net
|
|
(7.0)
|
|
3.0
|
|
(20.0)
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|
6.0
|
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Loss from continuing
operations before income taxes
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|
(34.8)
|
|
(50.4)
|
|
(75.7)
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|
(77.2)
|
|
Benefit from income
taxes
|
|
(126.9)
|
|
(10.0)
|
|
(129.5)
|
|
(14.2)
|
|
Income (loss) from
continuing operations
|
|
92.1
|
|
(40.4)
|
|
53.8
|
|
(63.0)
|
|
Income from
discontinued operations, net of tax
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|
3.7
|
|
11.6
|
|
34.2
|
|
26.9
|
|
Net income
(loss)
|
|
95.8
|
|
(28.8)
|
|
88.0
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|
(36.1)
|
|
Net income from
discontinued operations attributable to
noncontrolling interests
|
|
0.1
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|
0.2
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|
0.9
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|
1.0
|
|
Net income (loss)
attributable to Aleris Corporation
|
|
$ 95.7
|
|
$ (29.0)
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|
$ 87.1
|
|
$ (37.1)
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
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Operating and
Segment Information
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(unaudited)
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(in
millions)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Segment income
(loss):
|
|
|
|
|
|
|
|
|
North
America
|
$ 18.9
|
|
$ 4.2
|
|
$ 94.6
|
|
$ 81.8
|
|
Europe
|
37.0
|
|
17.1
|
|
147.6
|
|
132.1
|
|
Asia
Pacific
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Total segment
income
|
55.9
|
|
21.3
|
|
242.2
|
|
213.7
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
(35.3)
|
|
(27.5)
|
|
(123.2)
|
|
(98.8)
|
|
Corporate general and
administrative expenses, excluding depreciation,
amortization, start-up expenses and other expenses
|
(28.1)
|
|
(14.6)
|
|
(77.8)
|
|
(50.4)
|
|
Restructuring
charges
|
(1.3)
|
|
0.3
|
|
(2.8)
|
|
(5.0)
|
|
Interest expense,
net
|
(27.1)
|
|
(26.0)
|
|
(107.4)
|
|
(97.4)
|
|
Unallocated gains on
derivative financial instruments
|
1.4
|
|
3.2
|
|
5.4
|
|
2.1
|
|
Unallocated currency
exchange gains (losses)
|
4.9
|
|
(1.6)
|
|
12.6
|
|
(3.8)
|
|
Start-up
expenses
|
(5.3)
|
|
(4.9)
|
|
(24.5)
|
|
(35.6)
|
|
Other income
(expense), net
|
0.1
|
|
(0.6)
|
|
(0.2)
|
|
(2.0)
|
|
Loss from
continuing operations before income taxes
|
$ (34.8)
|
|
$ (50.4)
|
|
$ (75.7)
|
|
$ (77.2)
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Operating and
Segment Information
|
(unaudited)
|
(Dollars in millions,
except per ton measures, metric tons in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Shipped metric
tons:
|
|
|
|
|
|
|
|
|
North
America
|
121.0
|
|
84.7
|
|
482.0
|
|
372.3
|
|
Europe
|
75.2
|
|
79.6
|
|
334.9
|
|
345.4
|
|
Asia
Pacific
|
3.9
|
|
1.6
|
|
12.8
|
|
4.8
|
|
Intersegment
shipments
|
(0.1)
|
|
(0.9)
|
|
(3.7)
|
|
(7.5)
|
|
|
200.0
|
|
165.0
|
|
826.0
|
|
715.0
|
|
Shipments to
discontinued operations
|
(6.5)
|
|
(6.1)
|
|
(31.3)
|
|
(28.1)
|
|
Total shipped
metric tons
|
193.5
|
|
158.9
|
|
794.7
|
|
686.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
North
America
|
$ 413.4
|
|
$ 263.8
|
|
$ 1,561.8
|
|
$ 1,194.8
|
|
Europe
|
333.1
|
|
339.1
|
|
1,402.4
|
|
1,443.2
|
|
Asia
Pacific
|
15.8
|
|
7.0
|
|
52.7
|
|
20.7
|
|
Intersegment
revenues
|
(2.4)
|
|
(3.2)
|
|
(18.0)
|
|
(29.2)
|
|
|
759.9
|
|
606.7
|
|
2,998.9
|
|
2,629.5
|
|
Shipments to
discontinued operations
|
(26.9)
|
|
(25.4)
|
|
(116.5)
|
|
(108.7)
|
|
Total
revenues
|
$ 733.0
|
|
$ 581.3
|
|
$ 2,882.4
|
|
$ 2,520.8
|
|
|
|
|
|
|
|
|
|
|
Segment commercial
margin:
|
|
|
|
|
|
|
|
|
North
America
|
$ 149.3
|
|
$ 95.7
|
|
$ 569.0
|
|
$ 447.2
|
|
Europe
|
144.4
|
|
145.2
|
|
597.6
|
|
605.2
|
|
Asia
Pacific
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
Total segment
commercial margin
|
$ 293.7
|
|
$ 240.9
|
|
$ 1,166.6
|
|
$ 1,052.1
|
|
|
|
|
|
|
|
|
|
|
Segment commercial
margin per metric ton:
|
|
|
|
|
|
|
|
|
North
America
|
$ 1,234.5
|
|
$ 1,130.1
|
|
$ 1,180.4
|
|
$ 1,201.3
|
|
Europe
|
1,920.6
|
|
1,823.2
|
|
1,784.6
|
|
1,752.2
|
|
Asia
Pacific
|
*
|
|
*
|
|
*
|
|
*
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
North
America
|
$ 19.0
|
|
$
1.8
|
|
$ 96.0
|
|
$ 76.2
|
|
Europe
|
30.5
|
|
14.0
|
|
120.7
|
|
115.3
|
|
Asia
Pacific
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
Corporate
|
(11.0)
|
|
(9.1)
|
|
(40.2)
|
|
(34.4)
|
|
Total Adjusted
EBITDA
|
38.5
|
|
6.7
|
|
176.5
|
|
156.9
|
|
Discontinued
operations
|
20.3
|
|
19.4
|
|
89.0
|
|
79.3
|
|
Total Adjusted
EBITDA including discontinued operations
|
$ 58.8
|
|
$ 26.1
|
|
$ 265.5
|
|
$ 236.2
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA per metric ton:
|
|
|
|
|
|
|
|
|
North
America
|
$ 157.4
|
|
$ 21.0
|
|
$ 199.1
|
|
$ 204.6
|
|
Europe
|
406.0
|
|
176.3
|
|
360.5
|
|
333.9
|
|
Asia
Pacific
|
*
|
|
*
|
|
*
|
|
*
|
|
Aleris
Corporation
|
193.0
|
|
40.0
|
|
214.0
|
|
220.0
|
|
|
|
|
|
|
|
|
|
|
* Result is not
meaningful.
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Operating and
Segment Information
|
(unaudited)
|
(Dollars in millions,
except per ton measures, metric tons in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Shipped metric
tons:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
86.3
|
|
133.1
|
|
141.6
|
|
121.0
|
|
94.8
|
|
100.7
|
|
92.0
|
|
84.7
|
|
Europe
|
86.6
|
|
86.2
|
|
86.9
|
|
75.2
|
|
89.9
|
|
90.0
|
|
85.8
|
|
79.6
|
|
Asia
Pacific
|
2.3
|
|
2.8
|
|
3.8
|
|
3.9
|
|
0.1
|
|
1.1
|
|
1.9
|
|
1.6
|
|
Intersegment
shipments
|
(1.3)
|
|
(1.1)
|
|
(1.3)
|
|
—
|
|
(3.9)
|
|
(1.9)
|
|
(1.7)
|
|
(1.0)
|
|
|
174.0
|
|
221.0
|
|
231.0
|
|
200.0
|
|
181.0
|
|
190.0
|
|
178.0
|
|
165.0
|
|
Shipments to
discontinued operations
|
(8.6)
|
|
(8.4)
|
|
(7.8)
|
|
(6.5)
|
|
(7.5)
|
|
(7.0)
|
|
(6.4)
|
|
(6.1)
|
|
Total shipped
metric tons
|
165.4
|
|
212.6
|
|
223.2
|
|
193.5
|
|
173.5
|
|
183.0
|
|
171.6
|
|
158.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$ 261.3
|
|
$ 419.1
|
|
$ 468.0
|
|
$ 413.4
|
|
$ 314.3
|
|
$ 323.2
|
|
$ 293.6
|
|
$ 263.8
|
|
Europe
|
354.8
|
|
352.2
|
|
362.3
|
|
333.1
|
|
369.2
|
|
378.6
|
|
356.2
|
|
339.1
|
|
Asia
Pacific
|
10.0
|
|
11.3
|
|
15.6
|
|
15.8
|
|
0.7
|
|
5.0
|
|
7.9
|
|
7.0
|
|
Intersegment
revenues
|
(6.5)
|
|
(3.0)
|
|
(6.1)
|
|
(2.4)
|
|
(12.9)
|
|
(8.6)
|
|
(4.3)
|
|
(3.2)
|
|
|
619.6
|
|
779.6
|
|
839.8
|
|
759.9
|
|
671.3
|
|
698.2
|
|
653.4
|
|
606.7
|
|
Shipments to
discontinued operations
|
(28.6)
|
|
(30.2)
|
|
(30.8)
|
|
(26.9)
|
|
(29.9)
|
|
(26.5)
|
|
(27.1)
|
|
(25.4)
|
|
Total
revenues
|
$ 591.0
|
|
$ 749.4
|
|
$ 809.0
|
|
$ 733.0
|
|
$ 641.4
|
|
$ 671.7
|
|
$ 626.3
|
|
$ 581.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment commercial
margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$ 106.0
|
|
$ 149.0
|
|
$ 164.6
|
|
$ 149.3
|
|
$ 116.5
|
|
$ 123.5
|
|
$ 111.5
|
|
$ 95.7
|
|
Europe
|
151.1
|
|
150.7
|
|
151.5
|
|
144.4
|
|
149.1
|
|
161.0
|
|
150.0
|
|
145.2
|
|
Asia
Pacific
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total segment
commercial margin
|
$ 257.1
|
|
$ 299.7
|
|
$ 316.1
|
|
$ 293.7
|
|
$ 265.6
|
|
$ 284.5
|
|
$ 261.5
|
|
$ 240.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment commercial
margin per metric ton:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$ 1,228.4
|
|
$ 1,119.2
|
|
$ 1,162.5
|
|
$ 1,234.5
|
|
$ 1,228.7
|
|
$ 1,226.1
|
|
$ 1,211.4
|
|
$ 1,130.1
|
|
Europe
|
1,744.4
|
|
1,747.9
|
|
1,743.5
|
|
1,920.6
|
|
1,657.9
|
|
1,787.8
|
|
1,747.8
|
|
1,823.2
|
|
Asia
Pacific
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$ 23.2
|
|
$ 22.6
|
|
$ 31.0
|
|
$ 19.0
|
|
$ 23.4
|
|
$ 30.7
|
|
$ 20.4
|
|
$
1.8
|
|
Europe
|
30.3
|
|
25.8
|
|
34.2
|
|
30.5
|
|
33.6
|
|
34.5
|
|
33.1
|
|
14.0
|
|
Asia
Pacific
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
Corporate
|
(10.2)
|
|
(8.9)
|
|
(10.1)
|
|
(11.0)
|
|
(8.3)
|
|
(7.2)
|
|
(9.6)
|
|
(9.1)
|
|
Total Adjusted
EBITDA
|
43.3
|
|
39.5
|
|
55.1
|
|
38.5
|
|
48.4
|
|
58.0
|
|
43.9
|
|
6.7
|
|
Discontinued
operations
|
15.9
|
|
25.3
|
|
27.6
|
|
20.3
|
|
16.1
|
|
20.0
|
|
23.7
|
|
19.4
|
|
Total Adjusted
EBITDA including discontinued operations
|
$ 59.2
|
|
$ 64.8
|
|
$ 82.7
|
|
$ 58.8
|
|
$ 64.5
|
|
$ 78.0
|
|
$ 67.6
|
|
$ 26.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA per metric ton:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
|
$ 269.3
|
|
$ 170.1
|
|
$ 219.1
|
|
$ 157.4
|
|
$ 246.3
|
|
$ 304.6
|
|
$ 221.3
|
|
$ 21.0
|
|
Europe
|
349.3
|
|
299.2
|
|
393.1
|
|
406.0
|
|
374.1
|
|
383.6
|
|
386.0
|
|
176.3
|
|
Asia
Pacific
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
*
|
|
Aleris
Corporation
|
249.0
|
|
178.3
|
|
238.8
|
|
193.0
|
|
267.2
|
|
305.2
|
|
245.8
|
|
40.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Result is not
meaningful.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Consolidated
Balance Sheet
|
(unaudited)
|
(in millions, except
share and per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
December 31,
2014
|
|
December 31,
2013
|
|
Current
Assets
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
28.6
|
|
$
51.3
|
|
Accounts receivable
(net of allowances of $6.5 and $6.2 at December 31, 2014 and
December 31,
2013, respectively)
|
|
271.0
|
|
208.5
|
|
Inventories
|
|
627.9
|
|
494.2
|
|
Deferred income
taxes
|
|
28.1
|
|
5.9
|
|
Prepaid expenses and
other current assets
|
|
44.9
|
|
23.3
|
|
Assets of
discontinued operations - current
|
|
385.6
|
|
375.8
|
|
Total Current
Assets
|
|
1,386.1
|
|
1,159.0
|
|
Property, plant and
equipment, net
|
|
942.9
|
|
904.5
|
|
Intangible assets,
net
|
|
44.0
|
|
43.5
|
|
Deferred income
taxes
|
|
146.7
|
|
28.3
|
|
Other long-term
assets
|
|
72.4
|
|
66.4
|
|
Assets of
discontinued operations - long-term
|
|
269.8
|
|
271.2
|
|
Total
Assets
|
|
$
2,861.9
|
|
$
2,472.9
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
Accounts
payable
|
|
$
268.2
|
|
$
165.7
|
|
Accrued
liabilities
|
|
183.3
|
|
143.9
|
|
Deferred income
taxes
|
|
6.2
|
|
3.2
|
|
Current portion of
long-term debt
|
|
3.3
|
|
2.5
|
|
Liabilities of
discontinued operations - current
|
|
195.9
|
|
201.0
|
|
Total Current
Liabilities
|
|
656.9
|
|
516.3
|
|
Long-term
debt
|
|
1,474.9
|
|
1,226.8
|
|
Deferred income
taxes
|
|
0.4
|
|
1.7
|
|
Accrued pension
benefits
|
|
178.7
|
|
131.2
|
|
Accrued
postretirement benefits
|
|
46.4
|
|
40.9
|
|
Other long-term
liabilities
|
|
49.2
|
|
45.3
|
|
Liabilities of
discontinued operations - long-term
|
|
156.4
|
|
136.3
|
|
Total Long-Term
Liabilities
|
|
1,906.0
|
|
1,582.2
|
|
Redeemable
noncontrolling interest
|
|
5.7
|
|
5.7
|
|
Stockholders'
Equity
|
|
|
|
|
|
Common stock; par
value $.01; 45,000,000 shares authorized and 31,281,513 and
31,229,064
shares issued and outstanding at December 31, 2014 and December 31,
2013, respectively
|
|
0.3
|
|
0.3
|
|
Preferred stock; par
value $.01; 1,000,000 shares authorized; none issued
|
|
—
|
|
—
|
|
Additional paid-in
capital
|
|
414.1
|
|
401.9
|
|
Retained earnings
(deficit)
|
|
39.1
|
|
(47.6)
|
|
Accumulated other
comprehensive income
|
|
(160.9)
|
|
13.8
|
|
Total Aleris
Corporation Equity
|
|
292.6
|
|
368.4
|
|
Noncontrolling
interest
|
|
0.7
|
|
0.3
|
|
Total
Equity
|
|
293.3
|
|
368.7
|
|
Total Liabilities
and Equity
|
|
$
2,861.9
|
|
$
2,472.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Consolidated
Statements of Cash Flows
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$ 95.8
|
|
$ (28.8)
|
|
$ 88.0
|
|
$ (36.1)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by
operating activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
45.4
|
|
36.2
|
|
157.6
|
|
129.5
|
|
Benefit from deferred
income taxes
|
|
(127.8)
|
|
(14.8)
|
|
(132.0)
|
|
(13.7)
|
|
Loss on
classification as held for sale
|
|
11.2
|
|
—
|
|
11.2
|
|
—
|
|
Stock-based
compensation expense
|
|
2.9
|
|
3.1
|
|
13.8
|
|
14.3
|
|
Unrealized losses
(gains) on derivative financial instruments
|
|
0.9
|
|
(3.6)
|
|
(6.5)
|
|
(0.7)
|
|
Currency exchange
(gains) losses on debt
|
|
(4.3)
|
|
1.5
|
|
(11.5)
|
|
3.9
|
|
Amortization of debt
issuance costs
|
|
1.6
|
|
1.9
|
|
7.4
|
|
7.7
|
|
Other
|
|
(0.6)
|
|
0.9
|
|
2.0
|
|
(2.4)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Change in accounts
receivable
|
|
114.8
|
|
84.1
|
|
(34.1)
|
|
16.0
|
|
Change in
inventories
|
|
(62.0)
|
|
47.5
|
|
(171.5)
|
|
15.7
|
|
Change in other
assets
|
|
(11.4)
|
|
(7.5)
|
|
(14.2)
|
|
(20.5)
|
|
Change in accounts
payable
|
|
(30.6)
|
|
(59.6)
|
|
78.6
|
|
(31.3)
|
|
Change in accrued
liabilities
|
|
0.8
|
|
(11.7)
|
|
11.2
|
|
(50.5)
|
|
Net cash provided
by operating activities
|
|
36.7
|
|
49.2
|
|
—
|
|
31.9
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Payments for
property, plant and equipment
|
|
(55.8)
|
|
(55.5)
|
|
(164.8)
|
|
(238.3)
|
|
Purchase of a
business
|
|
—
|
|
—
|
|
(107.4)
|
|
—
|
|
Proceeds from the
sale of property, plant and equipment
|
|
0.2
|
|
1.5
|
|
2.8
|
|
2.9
|
|
Other
|
|
(1.4)
|
|
0.1
|
|
4.1
|
|
—
|
|
Net cash used by
investing activities
|
|
(57.0)
|
|
(53.9)
|
|
(265.3)
|
|
(235.4)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Proceeds from the ABL
facility
|
|
97.0
|
|
10.0
|
|
434.0
|
|
30.3
|
|
Payments on the ABL
facility
|
|
(81.0)
|
|
(10.0)
|
|
(210.0)
|
|
(30.3)
|
|
Proceeds from the
Zhenjiang term loans
|
|
—
|
|
—
|
|
—
|
|
0.2
|
|
Proceeds from the
Zhenjiang revolver
|
|
4.6
|
|
—
|
|
24.4
|
|
4.1
|
|
Payments on the
Zhenjiang revolver
|
|
—
|
|
(4.1)
|
|
—
|
|
(4.1)
|
|
Net payments on other
long-term debt
|
|
(0.6)
|
|
(2.5)
|
|
(0.3)
|
|
(5.2)
|
|
Redemption of
noncontrolling interest
|
|
—
|
|
—
|
|
—
|
|
(8.9)
|
|
Dividends
paid
|
|
—
|
|
—
|
|
—
|
|
(313.0)
|
|
Other
|
|
(0.3)
|
|
(0.7)
|
|
(2.0)
|
|
(4.7)
|
|
Net cash provided
(used) by financing activities
|
|
19.7
|
|
(7.3)
|
|
246.1
|
|
(331.6)
|
|
Effect of exchange
rate differences on cash and cash equivalents
|
|
(1.2)
|
|
0.8
|
|
(4.9)
|
|
2.3
|
|
Net decrease in
cash and cash equivalents
|
|
(1.8)
|
|
(11.2)
|
|
(24.1)
|
|
(532.8)
|
|
Cash and cash
equivalents at beginning of period
|
|
37.8
|
|
71.3
|
|
60.1
|
|
592.9
|
|
Cash and cash
equivalents at end of period
|
|
36.0
|
|
60.1
|
|
36.0
|
|
60.1
|
|
Cash and cash
equivalents included within assets of discontinued operations -
current
|
|
(7.4)
|
|
(8.8)
|
|
(7.4)
|
|
(8.8)
|
|
Cash and cash
equivalents of continuing operations
|
|
$ 28.6
|
|
$ 51.3
|
|
$ 28.6
|
|
$ 51.3
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Reconciliation of
Adjusted EBITDA to
|
Net Income (Loss)
Attributable to Aleris Corporation and
|
Cash Flows
Provided (Used) by Operating Activities
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Adjusted EBITDA
including discontinued operations
|
|
$ 58.8
|
|
$ 26.1
|
|
$ 265.5
|
|
$ 236.2
|
|
Less: Adjusted EBITDA
from discontinued operations
|
|
20.3
|
|
19.4
|
|
89.0
|
|
79.3
|
|
Adjusted EBITDA from
continuing operations
|
|
38.5
|
|
6.7
|
|
176.5
|
|
156.9
|
|
Unrealized gains on
derivative financial instruments
|
|
1.4
|
|
3.2
|
|
5.4
|
|
2.2
|
|
Impact of recording
inventory at fair value through purchase accounting
|
|
(2.5)
|
|
—
|
|
(8.1)
|
|
0.1
|
|
Restructuring
(charges) gains
|
|
(1.3)
|
|
0.3
|
|
(2.8)
|
|
(5.0)
|
|
Unallocated currency
exchange gains (losses) on debt
|
|
4.7
|
|
(1.3)
|
|
12.0
|
|
(2.1)
|
|
Stock-based
compensation expense
|
|
(2.9)
|
|
(3.1)
|
|
(13.8)
|
|
(14.3)
|
|
Start-up
expenses
|
|
(5.3)
|
|
(4.9)
|
|
(24.5)
|
|
(35.6)
|
|
Favorable metal price
lag
|
|
8.8
|
|
5.5
|
|
33.7
|
|
22.3
|
|
Other
|
|
(13.9)
|
|
(3.5)
|
|
(24.4)
|
|
(6.5)
|
|
EBITDA from
continuing operations
|
|
27.5
|
|
2.9
|
|
154.0
|
|
118.0
|
|
Interest expense,
net
|
|
(27.1)
|
|
(26.0)
|
|
(107.4)
|
|
(97.4)
|
|
Benefit from income
taxes
|
|
126.9
|
|
10.0
|
|
129.5
|
|
14.2
|
|
Depreciation and
amortization from continuing operations
|
|
(35.3)
|
|
(27.5)
|
|
(123.2)
|
|
(98.8)
|
|
Income from
discontinued operations, net of tax
|
|
3.7
|
|
11.6
|
|
34.2
|
|
26.9
|
|
Net income (loss)
attributable to Aleris Corporation
|
|
95.7
|
|
(29.0)
|
|
87.1
|
|
(37.1)
|
|
Net income from
discontinued operations attributable to noncontrolling
interests
|
|
0.1
|
|
0.2
|
|
0.9
|
|
1.0
|
|
Net income
(loss)
|
|
95.8
|
|
(28.8)
|
|
88.0
|
|
(36.1)
|
|
Depreciation and
amortization
|
|
45.4
|
|
36.2
|
|
157.6
|
|
129.5
|
|
Benefit from deferred
income taxes
|
|
(127.8)
|
|
(14.8)
|
|
(132.0)
|
|
(13.7)
|
|
Loss on
classification as held for sale
|
|
11.2
|
|
—
|
|
11.2
|
|
—
|
|
Stock-based
compensation expense
|
|
2.9
|
|
3.1
|
|
13.8
|
|
14.3
|
|
Unrealized losses
(gains) on derivative financial instruments
|
|
0.9
|
|
(3.6)
|
|
(6.5)
|
|
(0.7)
|
|
Currency exchange
(gains) losses on debt
|
|
(4.3)
|
|
1.5
|
|
(11.5)
|
|
3.9
|
|
Amortization of debt
issuance costs
|
|
1.6
|
|
1.9
|
|
7.4
|
|
7.7
|
|
Other
|
|
(0.6)
|
|
0.9
|
|
2.0
|
|
(2.4)
|
|
Change in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
|
Change in accounts
receivable
|
|
114.8
|
|
84.1
|
|
(34.1)
|
|
16.0
|
|
Change in
inventories
|
|
(62.0)
|
|
47.5
|
|
(171.5)
|
|
15.7
|
|
Change in other
assets
|
|
(11.4)
|
|
(7.5)
|
|
(14.2)
|
|
(20.5)
|
|
Change in accounts
payable
|
|
(30.6)
|
|
(59.6)
|
|
78.6
|
|
(31.3)
|
|
Change in accrued
liabilities
|
|
0.8
|
|
(11.7)
|
|
11.2
|
|
(50.5)
|
|
Net cash provided by
operating activities
|
|
$ 36.7
|
|
$ 49.2
|
|
$ —
|
|
$ 31.9
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Reconciliation of
Segment Income (Loss) to
|
Segment Adjusted
EBITDA
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
|
$
18.9
|
|
$
4.2
|
|
$
94.6
|
|
$
81.8
|
|
|
Impact of recording
inventory at fair value through purchase accounting
|
|
2.5
|
|
—
|
|
8.1
|
|
—
|
|
|
Favorable metal price
lag
|
|
(2.4)
|
|
(2.4)
|
|
(6.8)
|
|
(5.6)
|
|
|
Segment Adjusted
EBITDA (1)
|
|
$
19.0
|
|
$
1.8
|
|
$
96.0
|
|
$
76.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
|
$
37.0
|
|
$
17.1
|
|
$
147.6
|
|
$
132.1
|
|
|
Impact of recording
inventory at fair value through purchase accounting
|
|
—
|
|
—
|
|
—
|
|
(0.1)
|
|
|
Favorable metal price
lag
|
|
(6.4)
|
|
(3.1)
|
|
(26.9)
|
|
(16.6)
|
|
|
Segment Adjusted
EBITDA (1)
|
|
$
30.5
|
|
$
14.0
|
|
$
120.7
|
|
$
115.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
Segment
loss
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(0.2)
|
|
|
Segment Adjusted
EBITDA (2)
|
|
—
|
|
—
|
|
—
|
|
(0.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not
foot as they represent the calculated totals based on actual
amounts and not the rounded amounts presented in this
table.
|
|
(2) There was no
difference between segment income and segment Adjusted EBITDA for
this segment.
|
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Reconciliation of
Segment Income (Loss) to
|
Segment Adjusted
EBITDA
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
|
$
26.9
|
|
$
22.4
|
|
$
26.4
|
|
$
18.9
|
|
$
23.5
|
|
$
32.7
|
|
$
21.5
|
|
$
4.2
|
|
Impact of recording
inventory at fair value through purchase
accounting
|
|
—
|
|
3.0
|
|
2.5
|
|
2.5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(Favorable)
unfavorable metal price lag
|
|
(3.7)
|
|
(2.8)
|
|
2.1
|
|
(2.4)
|
|
(0.1)
|
|
(2.0)
|
|
(1.2)
|
|
(2.4)
|
|
Segment Adjusted
EBITDA (1)
|
|
$
23.2
|
|
$
22.6
|
|
$
31.0
|
|
$
19.0
|
|
$
23.4
|
|
$
30.7
|
|
$
20.4
|
|
$
1.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
income
|
|
$
38.1
|
|
$
34.4
|
|
$
38.1
|
|
$
37.0
|
|
$
38.5
|
|
$
39.4
|
|
$
37.1
|
|
$
17.1
|
|
Favorable metal price
lag
|
|
(7.9)
|
|
(8.6)
|
|
(4.0)
|
|
(6.4)
|
|
(4.8)
|
|
(4.8)
|
|
(4.0)
|
|
(3.1)
|
|
Segment Adjusted
EBITDA (1)
|
|
$
30.3
|
|
$
25.8
|
|
$
34.2
|
|
$
30.5
|
|
$
33.6
|
|
$
34.5
|
|
$
33.1
|
|
$
14.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
loss
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(0.3)
|
|
$
—
|
|
$
—
|
|
$
—
|
|
Segment Adjusted
EBITDA (2)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(0.3)
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts may not
foot as they represent the calculated totals based on actual
amounts and not the rounded amounts presented in this
table.
|
|
(2) There was no
difference between segment income and segment Adjusted EBITDA for
this segment.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Reconciliation of
Segment Revenues to
|
Segment Commercial
Margin
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
For the year
ended
|
|
|
|
December
31,
|
|
December
31,
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
North
America
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
413.4
|
|
$
263.8
|
|
$
1,561.8
|
|
$ 1,194.8
|
|
Hedged cost of
metal
|
|
(261.7)
|
|
(165.7)
|
|
(986.0)
|
|
(742.0)
|
|
Favorable metal price
lag
|
|
(2.4)
|
|
(2.4)
|
|
(6.8)
|
|
(5.6)
|
|
Segment commercial
margin
|
|
$
149.3
|
|
$
95.7
|
|
$
569.0
|
|
$
447.2
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
333.1
|
|
$
339.1
|
|
$
1,402.4
|
|
$ 1,443.2
|
|
Hedged cost of
metal
|
|
(182.3)
|
|
(190.8)
|
|
(777.9)
|
|
(821.4)
|
|
Favorable metal price
lag
|
|
(6.4)
|
|
(3.1)
|
|
(26.9)
|
|
(16.6)
|
|
Segment commercial
margin
|
|
$
144.4
|
|
$
145.2
|
|
$
597.6
|
|
$
605.2
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
15.8
|
|
$
7.0
|
|
$
52.7
|
|
$
20.7
|
|
Hedged cost of
metal
|
|
(15.8)
|
|
(7.0)
|
|
(52.7)
|
|
(21.0)
|
|
Segment commercial
margin
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aleris
Corporation
|
|
Reconciliation of
Segment Revenues to
|
Segment Commercial
Margin
|
(unaudited)
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
North
America
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
261.3
|
|
$
419.1
|
|
$
468.0
|
|
$
413.4
|
|
$
314.3
|
|
$
323.2
|
|
$
293.6
|
|
$
263.8
|
|
Hedged cost of
metal
|
|
(151.6)
|
|
(267.3)
|
|
(305.5)
|
|
(261.7)
|
|
(197.7)
|
|
(197.7)
|
|
(180.9)
|
|
(165.7)
|
|
Favorable metal price
lag
|
|
(3.7)
|
|
(2.8)
|
|
2.1
|
|
(2.4)
|
|
(0.1)
|
|
(2.0)
|
|
(1.2)
|
|
(2.4)
|
|
Segment commercial
margin
|
|
$
106.0
|
|
$
149.0
|
|
$
164.6
|
|
$
149.3
|
|
$
116.5
|
|
$
123.5
|
|
$
111.5
|
|
$
95.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Europe
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
354.8
|
|
$
352.2
|
|
$
362.3
|
|
$
333.1
|
|
$
369.2
|
|
$
378.6
|
|
$
356.2
|
|
$
339.1
|
|
Hedged cost of
metal
|
|
(195.8)
|
|
(192.9)
|
|
(206.8)
|
|
(182.3)
|
|
(215.3)
|
|
(212.8)
|
|
(202.2)
|
|
(190.8)
|
|
Favorable metal price
lag
|
|
(7.9)
|
|
(8.6)
|
|
(4.0)
|
|
(6.4)
|
|
(4.8)
|
|
(4.8)
|
|
(4.0)
|
|
(3.1)
|
|
Segment commercial
margin
|
|
$
151.1
|
|
$
150.7
|
|
$
151.5
|
|
$
144.4
|
|
$
149.1
|
|
$
161.0
|
|
$
150.0
|
|
$
145.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia
Pacific
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment
revenues
|
|
$
10.0
|
|
$
11.3
|
|
$
15.6
|
|
$
15.8
|
|
$
0.7
|
|
$
5.0
|
|
$
7.9
|
|
$
7.0
|
|
Hedged cost of
metal
|
|
(10.0)
|
|
(11.3)
|
|
(15.6)
|
|
(15.8)
|
|
(1.0)
|
|
(5.0)
|
|
(7.9)
|
|
(7.0)
|
|
Segment commercial
margin
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
—
|
|
$
(0.3)
|
|
$
—
|
|
$
—
|
|
$
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/aleris-reports-fourth-quarter-and-full-year-2014-results-300056938.html
SOURCE Aleris