SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
AMENDMENT NO. 1 TO CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Original Report (Date of earliest event reported): March 16, 2004
CENTURY ALUMINUM COMPANY
(Exact name of registrant as specified in its charter)
Delaware 0-27918 13-3070826
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
Incorporation)
2511 Garden Road
Building A, Suite 200
Monterey, California 93940
(Address of principal (Zip Code)
executive offices)
(831) 642-9300
(Registrant's telephone number, including area code)
Item 5. Other Events.
On March 16, 2004, Century Aluminum Company ("Century") filed a Form 8-K
(the "Original Form 8-K") containing unaudited pro forma consolidated financial
information reflecting Century's proposed acquisition of either a 100% or 49.9%
interest in Nordural hf, an Icelandic primary aluminum producer. The pro forma
consolidated financial information set forth below replaces the pro forma
consolidated financial information contained in the Original Form 8-K and
reflects Century's agreement to purchase 100% of Nordural hf.
Forward-Looking Statements
This Form 8-K may contain certain "forward-looking statements." Century
has based these forward-looking statements on current expectations and
projections about future events. Many of these statements may be identified by
the use of forward-looking words such as "expects," "anticipates," "plans,"
"believes," "projects," "estimates," "should," "will," and "potential" and
variations of such words. These forward-looking statements are subject to risks,
uncertainties and assumptions and readers are cautioned that actual results
could differ materially and, therefore, they should not place undue reliance on
any forward-looking statements. Century does not undertake, and specifically
disclaims, any obligation to revise any forward-looking statements to reflect
the occurrence of anticipated or unanticipated events or circumstances after the
date such forward-looking statements are made.
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INDEX TO FINANCIAL STATEMENTS
Page
----
Unaudited Pro Forma Consolidated Financial Information
100% Acquisition
Introduction to Unaudited Pro Forma Consolidated Financial Information ............. 4
Unaudited Pro Forma Consolidated Balance Sheet ..................................... 5
Notes to Unaudited Pro Forma Consolidated Balance Sheet ............................ 6
Unaudited Pro Forma Consolidated Statement of Operations ........................... 7
Notes to Unaudited Pro Forma Consolidated Statement of Operations .................. 9
3
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
The following tables present Century's unaudited pro forma consolidated
balance sheet as of December 31, 2003 and unaudited pro forma consolidated
statement of operations for the year ended December 31, 2003. The unaudited
pro forma consolidated financial data presented below has been derived from
the following, which are included elsewhere in this prospectus supplement:
(1) Century's audited consolidated financial statements and accompanying notes
included in its Annual Report on Form 10-K for the year ended December 31,
2003; and (2) the separate audited financial statements and accompanying notes
of Nordural for the year ended December 31, 2003 which are included in the
Original Form 8-K filed on March 16, 2004. The unaudited pro forma consolidated
financial data has been prepared for illustrative purposes only and does not
purport to represent what Century's results of operations or financial
condition would actually have been had the transactions described below in
fact occurred as of the dates specified. In addition, the unaudited pro forma
consolidated financial data does not purport to project Century's results of
operations or financial condition as of any date or for any future period.
Among other things, the unaudited pro forma consolidated financial data does
not reflect the effects of Century's acquisition of the remaining 20% interest
in its Hawesville primary aluminum reduction facility prior to the closing of
that acquisition in April 2003.
The unaudited pro forma consolidated balance sheet as of December 31, 2003
gives effect to the following events as if they were consummated on December 31,
2003:
- Century's acquisition of all of the outstanding equity shares of
Nordural;
- Century's issuance and sale of approximately $245 million in common
stock in a registered public offering;
- Century's payment of the remaining $12.0 million of principal
outstanding under the promissory note payable to Glencore;
- Century's payment of $3.0 million of dividends on its convertible
preferred stock; and
- other adjustments that management believes are directly related to the
Nordural acquisition.
The unaudited pro forma consolidated statement of operations for the year
ended December 31, 2003 gives pro forma effect to these events as if they were
consummated on January 1, 2003.
The Nordural acquisition would be accounted for using the purchase method
of accounting. Under the purchase method of accounting, the cash payment of the
estimated aggregate purchase price for Nordural (including transaction fees and
expenses) would be allocated to the tangible assets, identifiable intangible
assets and liabilities of Nordural, based upon their respective fair values. The
allocation of the purchase price, useful lives assigned to assets and other
adjustments made to the unaudited pro forma consolidated financial data are
based upon available information and certain preliminary assumptions that
Century believes are reasonable under the circumstances. Century has not yet
completed the fair market value allocation to the specific assets and
liabilities of Nordural. Consequently, the final amounts allocated and the
related useful lives could differ from those reflected in the unaudited pro
forma consolidated financial data and the effects could be material. The
acquisition of Nordural is subject to certain conditions, including the
successful completion of a registered public offering, and there can be no
assurance that the acquisition will be consummated.
The unaudited pro forma consolidated financial data should be read in
conjunction with (1) Century's audited consolidated financial statements and
accompanying notes and "Management's Discussion and Analysis of Financial
Condition and Results of Operations," which are each included in its Annual
Report on Form 10-K for the year ended December 31, 2003; and (2) the separate
audited financial statements and accompanying notes of Nordural which are
included in the Original Form 8-K filed on March 16, 2004.
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UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2003
U.S. GAAP U.S. GAAP PRO FORMA PRO FORMA
CENTURY NORDURAL ADJUSTMENTS NORDURAL ADJUSTMENTS CONSOLIDATED
-------- -------- ----------- --------- ----------- ------------
(DOLLARS IN THOUSANDS)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents.................. $ 28,204 $ 9,898 $ -- $ 9,898 $ 3,277(1) $ 91,099
230,395(2)
(165,675)(3)
(12,000)(4)
(3,000)(5)
Accounts receivable -- net................. 51,370 5,897 -- 5,897 -- 57,267
Due from affiliates........................ 10,957 14,877 -- 14,877 (14,877)(1) 10,957
Inventories................................ 89,360 12,635 -- 12,635 -- 101,995
Prepaid and other current assets........... 4,101 1,663 -- 1,663 -- 5,764
Deferred taxes -- current portion.......... 3,413 -- -- -- -- 3,413
-------- -------- ------- -------- --------- ----------
Total current assets................... 187,405 44,970 -- 44,970 38,120 270,495
Property, plant and equipment -- net......... 494,957 215,897 832 216,729 36,473(3) 748,159
Intangible assets -- net..................... 99,136 -- -- -- 83,771(3) 182,907
Other assets................................. 28,828 13,926 (861) 13,065 (13,065)(3) 28,828
-------- -------- ------- -------- --------- ----------
Total.................................. $810,326 $274,793 $ (29) $274,764 $ 145,299 $1,230,389
======== ======== ======= ======== ========= ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade.................... $ 34,829 $ 6,463 $ -- $ 6,463 $ -- $ 41,292
Due to affiliates.......................... 27,139 147 -- 147 -- 27,286
Industrial revenue bonds................... 7,815 -- -- -- -- 7,815
Current portion of long term debt.......... -- 14,411 -- 14,411 -- 14,411
Accrued and other current liabilities...... 30,154 2,067 280 2,347 -- 32,501
Accrued employee benefits costs -- current
portion.................................. 8,934 -- -- -- -- 8,934
Deferred taxes -- current portion.......... -- -- -- -- -- --
-------- -------- ------- -------- --------- ----------
Total current liabilities................ 108,871 23,088 280 23,368 -- 132,239
-------- -------- ------- -------- --------- ----------
Long term debt -- net........................ 322,310 174,024 862 174,886 -- 497,196
Notes payable -- affiliates.................. 14,000 -- -- -- (12,000)(4) 2,000
Accrued pension benefits costs -- less
current portion............................ 10,764 -- -- -- -- 10,764
Accrued postretirement benefits costs -- less
current portion............................ 78,218 -- -- -- -- 78,218
Other liabilities............................ 33,372 2,141 -- 2,141 -- 35,513
Deferred taxes -- less current portion....... 55,094 4,440 (167) 4,273 -- 59,367
-------- -------- ------- -------- --------- ----------
Total noncurrent liabilities........... 513,758 180,605 695 181,300 (12,000) 683,058
-------- -------- ------- -------- --------- ----------
CONTINGENCIES AND COMMITMENTS
SHAREHOLDERS' EQUITY:
Convertible preferred stock (8.0%
cumulative, 500,000 shares
outstanding)............................. 25,000 -- -- -- -- 25,000
Common stock (one cent par value,
50,000,000 shares authorized; 21,130,839
shares outstanding at December 31,
2003).................................... 211 -- -- -- 85(2) 296
Capital stock.............................. -- 59,500 -- 59,500 (59,500)(3) --
Additional paid-in capital................. 173,138 -- -- -- 230,310(2) 403,448
Accumulated other comprehensive income
(loss)................................... (5,222) -- (280) (280) 280(3) (5,222)
Retained earnings (deficit)................ (5,430) 11,600 (724) 10,876 724(3) (8,430)
(11,600)(1)
(3,000)(5)
-------- -------- ------- -------- --------- ----------
Total shareholders' equity............. 187,697 71,100 (1,004) 70,096 157,299 415,092
-------- -------- ------- -------- --------- ----------
Total.................................. $810,326 $274,793 $ (29) $274,764 $ 145,299 $1,230,389
======== ======== ======= ======== ========= ==========
See accompanying notes to the unaudited pro forma consolidated balance sheet.
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NOTES TO THE UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2003
1. Reflects an adjustment to eliminate Nordural shareholder loans, a
portion of which is expected to be repaid prior to closing and the balance is
expected to be offset against retained earnings.
2. Records the proceeds, net of financing costs, from Century's issuance
and sale of approximately $245 million in common stock in a registered public
offering.
3. Reflects the cash payment and allocation of the estimated aggregate
purchase price for Nordural, including acquired cash and estimated transaction
fees and expenses (subject to adjustment for an additional payment not to exceed
$25.0 million due upon commencement of the expansion). Acquired cash reflects
pro forma cash on the balance sheet of Nordural which Century has agreed to
purchase. Century will also compensate the seller for the cash flow generated
by the business from December 31, 2003 through closing which could be material.
PURCHASE PRICE:
Purchase price............................................ $ 150,000
Acquired cash............................................. 13,175
Transaction fees and expenses............................. 2,500
---------
Total purchase price...................................... $ 165,675
=========
PRELIMINARY ALLOCATION OF PURCHASE PRICE:
Current assets............................................ $ 33,370
Property, plant and equipment............................. 253,202
Goodwill.................................................. 83,771
Current liabilities....................................... (23,368)
Noncurrent liabilities.................................... (181,300)
---------
Total purchase price...................................... $ 165,675
=========
4. Reflects the payment of a portion of the remaining outstanding principal
under a promissory note payable to Glencore.
5. Reflects the payment of dividends on Century's convertible preferred
stock.
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UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2003
U.S. GAAP U.S. GAAP PRO FORMA PRO FORMA
CENTURY NORDURAL ADJUSTMENTS NORDURAL ADJUSTMENTS CONSOLIDATED
-------- -------- ----------- --------- ----------- ------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
NET SALES:
Third-party customers......... $660,593 $100,939 $ -- $100,939 $ -- $761,532
Related parties............... 121,886 -- -- -- -- 121,886
-------- -------- ------- -------- ------- --------
782,479 100,939 -- 100,939 -- 883,418
Cost of goods sold............ 734,441 82,003 231 82,234 (5,249)(1) 808,262
(3,164)(2)
-------- -------- ------- -------- ------- --------
Gross profit.................. 48,038 18,936 (231) 18,705 8,413 75,156
Selling, general and
administrative expenses..... 20,833 558 -- 558 -- 21,391
-------- -------- ------- -------- ------- --------
Operating income.............. 27,205 18,378 (231) 18,147 8,413 53,765
Interest expense -- third
party....................... (41,269) (5,401) -- (5,401) -- (46,670)
Interest expense -- related
party....................... (2,579) -- -- -- 900(3) (1,679)
Interest income............... 339 -- -- -- -- 339
Net gain (loss) on forward
contracts................... 25,691 -- -- -- -- 25,691
Investment income............. 3,063 -- 3,063(4) -- 3,063
Other income
(expense) -- net............ (688) -- -- -- -- (688)
-------- -------- ------- -------- ------- --------
Income (loss) before income
taxes and minority
interest.................... 8,699 16,040 (231) 15,809 9,313 33,821
Income tax benefit
(expense)................... (2,841) (2,887) 41 (2,846) (3,260)(5) (11,634)
(2,687)(6)
-------- -------- ------- -------- ------- --------
Income (loss) before minority
interest and cumulative
effect of change in
accounting principle........ 5,858 13,153 (190) 12,963 3,366 22,187
Minority interest............. 986 -- -- -- -- 986
-------- -------- ------- -------- ------- --------
Income (loss) before
cumulative effect of change
in accounting principle..... 6,844 13,153 (190) 12,963 3,366 23,173
Cumulative effect of change in
accounting principle, net of
tax benefit of $3,430....... (5,878) -- -- -- -- (5,878)
-------- -------- ------- -------- ------- --------
Net income (loss)............. 966 13,153 (190) 12,963 3,366 17,295
Preferred dividends........... (2,000) -- -- -- -- (2,000)
-------- -------- ------- -------- ------- --------
Net income (loss) applicable
to common shareholders...... $ (1,034) $ 13,153 $ (190) $ 12,963 $ 3,366 $ 15,295
======== ======== ======= ======== ======= ========
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U.S. GAAP U.S. GAAP PRO FORMA PRO FORMA
CENTURY NORDURAL ADJUSTMENTS NORDURAL ADJUSTMENTS CONSOLIDATED
-------- -------- ----------- --------- ----------- ------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
EARNINGS (LOSS) PER COMMON
SHARE:
Basic:
Income (loss) before
cumulative effect of change
in accounting principle..... $ 0.23 $ 0.72
Cumulative effect of change in
accounting principle........ (0.28) (0.20)
-------- --------
Net income (loss)...... $ (0.05) $ 0.52
======== ========
Diluted:
Income (loss) before
cumulative effect of change
in accounting principle..... $ 0.23 $ 0.72
Cumulative effect of change in
accounting principle........ (0.28) (0.20)
-------- --------
Net income (loss)...... $ (0.05) $ 0.52
======== ========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING
(IN THOUSANDS):
Basic....................... 21,073 8,500(7) 29,573
======== ======= ========
Diluted..................... 21,099 8,500(7) 29,599
======== ======= ========
See accompanying notes to the unaudited pro forma consolidated statement of
operations.
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NOTES TO THE UNAUDITED PRO FORMA
CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 2003
1. Reflects an adjustment to depreciation expense based on the preliminary
purchase accounting fair market valuation of Nordural's property, plant and
equipment using an estimated average useful life of 35 years.
2. Reflects an adjustment to eliminate Nordural's historical amortization
expense related to deferred financing and carbon anode contract costs.
3. Reflects an adjustment to reduce interest expense for the repayment of a
portion of the outstanding principal under the promissory note payable to
Glencore.
4. Includes income from certain equity investments, a substantial portion
of which have been sold.
5. Reflects an adjustment to record income tax expense for the effects of
the pro forma adjustments using an effective tax rate of 35%.
6. Reflects an adjustment to record the incremental increase in income tax
expense for the historical results of Nordural using an effective tax rate of
35% as opposed to the historical rate of 18%.
7. Records the additional shares outstanding from Century's issuance and
sale of 8,500,000 shares of our common stock in this offering at an assumed
offering price of $28.87 per share, which is the reported closing price per
share of Century's common stock as of March 26, 2004.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
CENTURY ALUMINUM COMPANY
Date: March 30, 2004 By: /s/ Gerald J. Kitchen
-------------------- ----------------------------------------
Name: Gerald J. Kitchen
Title: Executive Vice President, General
Counsel Chief Administrative
Officer and Secretary
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