BEACHWOOD, Ohio, March 30 /PRNewswire-FirstCall/ -- Aleris
International, Inc. today reported results for the fourth quarter of 2006
and the year ended December 31, 2006.
Summary
-- On December 19, 2006, Aleris was acquired by TPG (the "Acquisition")
for a purchase price of approximately $1.7 billion plus the assumption
of approximately $1.6 billion of debt. TPG financed the transaction
with equity contributions from affiliated funds, certain co-investors
and cash on hand at the Company, along with an amended and restated
$1.2 billion senior secured loan facility, an amended and restated
senior secured asset-based revolving credit facility with a maximum
availability of $750.0 million, a $600.0 million offering of senior
notes and a $400.0 million offering of senior subordinated notes.
-- Fourth quarter net income was $10.9 million compared with a reported
net loss of $5.2 million in the fourth quarter of 2005. EBITDA was
$97.5 million in the fourth quarter of 2006 compared with $18.1 million
in the fourth quarter of 2005.
-- Special items recorded during the quarter reduced net income by an
aggregate amount of $4.0 million and included $39.6 million of
restructuring and other charges, $12.9 million of charges for the
impact of recording acquired assets at fair value, and $0.7 million of
charges related to refinancing debt for the acquisition of the
downstream business of Corus Group plc ("Corus Aluminum"); partially
offset by $35.4 million of unrealized gains on derivative financial
instruments and a $13.8 million gain on the sale of the Carson,
California property.
-- EBITDA excluding special items for fourth quarter 2006 was $101.5
million compared with $55.4 million for the comparable period last
year.
-- Full year 2006 net income was $70.3 million compared with a reported
net income of $74.3 million for full year 2005. EBITDA was $308.7
million in 2006 compared with $170.5 million in 2005.
-- Special items recorded during 2006 reduced net income by an aggregate
amount of $89.9 million and included $54.4 million of charges related
to refinancing debt for the Corus Aluminum acquisition, $45.5 million
related to the impact of recording assets at fair value, and $41.9
million of restructuring and other charges; partially offset by $28.3
million of unrealized gains on derivatives, a $13.8 million gain on the
sale of the Carson, California property, and a $9.8 million gain on
currency hedges related to a portion of the euro denominated purchase
price paid for the Corus Aluminum acquisition.
-- EBITDA excluding special items for full year 2006 was $398.6 million
compared with $230.8 million for full year 2005.
-- Pro forma for the Corus Aluminum acquisition, which was completed on
August 1, 2006, full year 2006 revenues were $6.0 billion and EBITDA
excluding special items was $530.5 million.
-- As a result of the Acquisition and subsequent refinancing, pro forma
net debt to EBITDA excluding special items and including synergies was
4.6x for the year ended December 31, 2006.
-- Merger-related synergies from the Commonwealth acquisition and
companywide productivity initiatives aggregated $55 million for full
year 2006 while synergies related to the 2005 acquisitions totaled
approximately $44 million in 2006.
For Three Months Ended
December 31
(in millions) 2006 2005
(Combined)(1) (Predecessor)
Volume:
Recycling and zinc lbs shipped 880 881
Rolled and extruded products
lbs shipped 534 224
Revenue $1,493.4 $625.5
Net income(loss) $10.9 ($5.2)
EBITDA (2) $97.5 $18.1
EBITDA excl. special items (2) $101.5 $55.4
For the Year Ended December 31
(in millions) 2006
Pro Forma(3) Reported 2005
Volume: (Combined)(1) (Predecessor)
Recycling and zinc
lbs shipped 3,274 3,274 3,197
Rolled and extruded products
lbs shipped 2,297 1,641 922
Revenue $6,027.7 $4,748.8 $2,429.0
Net income (loss) $9.3 $70.3 $74.3
EBITDA (2) $409.8 $308.7 $170.5
EBITDA excl. special items (2) $530.5 $398.6 $230.8
(1) We have prepared our discussion of the results of operations for the
year ended December 31, 2006 by combining the amounts obtained by
adding the operating results for the period prior to the Acquisition,
the "Predecessor Period," to the period subsequent to the
Acquisition, the "Successor Period." We refer to the sum of these
two periods as the "Combined Period." In this press release,
references to fourth quarter and full year shipments or operating
data, are to the Combined Periods.
(2) In this press release, we refer to various non-GAAP (generally
accepted accounting principles) financial measures including EBITDA
and EBITDA excluding special items. The methods used to compute
these measures are likely to differ from the methods used by other
companies. These non-GAAP measures have limitations as analytical
tools and should be considered in addition to, not in isolation or as
a substitute for, or superior to, Aleris's measures of financial
performance prepared in accordance with GAAP. Investors are
encouraged to review the accompanying tables reconciling the non-GAAP
financial measures to comparable GAAP amounts. "EBITDA", as used in
this press release, is defined as net income before interest income
and expense, taxes, depreciation and amortization and minority
interests. "EBITDA excluding special items," as used in this press
release, is defined as EBITDA excluding restructuring and other
charges, losses on the early extinguishment of debt, one-time
realized gains such as the settlement of derivative financial
instruments that hedged a portion of the purchase price to acquire
Corus Aluminum and the sale of our Carson, California property, mark-
to-market SFAS No. 133 unrealized gains and losses on derivative
financial instruments, and the impact of the write-up of inventory
and other items through purchase accounting. Management uses EBITDA
as a performance metric and believes this measure provides additional
information commonly used by our noteholders and lenders with respect
to the performance of our fundamental business objectives, as well as
our ability to meet future debt service, capital expenditures and
working capital needs. Management believes EBITDA excluding special
items is useful to our stakeholders in understanding our operating
results and the ongoing performance of our underlying businesses
without the impact of these special items. Additionally, management
uses EBITDA because the Company's new senior secured asset-based
revolving credit facility uses EBITDA with additional adjustments to
measure its compliance with certain covenants.
(3) Represents unaudited pro forma financial information for the year
ended December 31, 2006 and presents our combined results of
operations as if the Corus Aluminum acquisition and the Acquisition
had occurred on January 1, 2006. Pro forma EBITDA excluding special
items includes the expected savings of $28 million from the Corus
Aluminum acquisition and the Carson, California rolling mill closure.
The unaudited pro forma information is not necessarily indicative of
the consolidated results of operations that would have occurred had
the Corus Aluminum acquisition and the Acquisition been made at the
beginning of the period presented or the future results of combined
operations.
Fourth Quarter 2006 Operating Results
Aleris reported fourth quarter 2006 revenues of $1.5 billion, EBITDA of
$97.5 million and net income of $10.9 million. These results include losses
from special items consisting of $39.6 million of restructuring and other
charges, $12.9 million related to the impact of recording acquired assets
at fair value, and a $0.7 million charge related to our refinancing in
connection with the Corus Aluminum acquisition; offset partially by $35.4
million of non- cash mark-to-market SFAS No. 133 unrealized gains on
derivative financial instruments and a $13.8 million gain on the sale of
the Carson, California property.
For the fourth quarter of 2005, Aleris reported revenues of $625.5
million, EBITDA of $18.1 million and a net loss of $5.2 million. These
results included losses from special items including $25.1 million related
to the closure of our Carson, California rolling mill, $8.2 million of
non-cash mark-to-market SFAS No. 133 unrealized losses on derivative
financial instruments and $4.0 million related to the impact of the
write-up of rolled products assets to fair value at date of purchase.
EBITDA excluding special items totaled $101.5 million in the fourth
quarter of 2006, an increase of 83.2% compared with $55.4 million in the
fourth quarter of 2005. The Company's improved results were driven
primarily by the Corus Aluminum acquisition, benefits from the 2005
acquisitions, merger-related synergies from the Commonwealth acquisition
and companywide productivity initiatives and improved results from the
Global Zinc segment.
Full Year 2006 Operating Results
For 2006, Aleris reported revenues of $4.7 billion, EBITDA of $308.7
million and net income of $70.3 million. These results include losses from
special items including a $54.4 million charge related to the early
extinguishment of debt, $45.5 million related to the impact of recording
acquired assets at fair value, and $41.9 million of restructuring and other
charges; offset partially by $28.3 million of non-cash mark-to-market SFAS
No. 133 unrealized gains on derivative financial instruments, a gain of
$13.8 million on the sale of the Carson, California property, as well as a
$9.8 million gain on currency hedges related to a portion of the euro
denominated purchase price paid for the Corus Aluminum acquisition. For the
comparable 2005 period, Aleris reported revenues of $2.4 billion, EBITDA of
$170.5 million and net income of $74.3 million. Those results included
losses from special items including $29.9 million of restructuring and
asset impairment charges related to the Commonwealth acquisition, $18.6
million of mark-to- market SFAS No. 133 unrealized losses on derivative
financial instruments, and $11.8 million of purchase accounting
adjustments.
EBITDA excluding special items was $398.6 million for the full year
2006 compared with $230.8 million for the prior year. The improvements in
2006 were the result of merger-related synergies from the Commonwealth
acquisition and companywide productivity initiatives, the Corus Aluminum
acquisition, improvements in the Global Zinc and Global Recycling segments,
and benefits from the 2005 acquisitions.
Pro forma for the Corus Aluminum acquisition which was completed on
August 1, 2006, full year 2006 revenues were $6.0 billion and EBITDA
excluding special items was $530.5 million.
Net debt increased by $1.8 billion since December 31, 2005, due to the
Acquisition as well as the Corus Aluminum acquisition. Pro forma net debt
to EBITDA excluding special items and including synergies stood at 4.6x at
December 31, 2006.
Steven J. Demetriou, Chairman and Chief Executive Officer of Aleris,
said, "We have just concluded a very exciting second year in Aleris's short
history that culminated with the sale of the Company to TPG. Results in
2006 began with terrific execution related to the integration of the 2005
acquisitions, while we exceeded our expectations with the continued
improvements generated from the merger-related synergies from the
Commonwealth acquisition and companywide productivity initiatives. In
August, we completed the Corus Aluminum acquisition and we continue to be
pleased with the diversity that these assets bring our Company in terms of
product breadth, innovation, geographic presence and management talent. At
the same time, throughout the year we remained focused on our customers and
profitable growth."
Global Rolled and Extruded Products
Global Rolled and Extruded Products shipments totaled 534 million
pounds in the fourth quarter of 2006, including approximately 341 million
pounds from the acquisitions of ALSCO, certain assets of Ormet and the
Corus Aluminum acquisition. This compared with shipments of 224 million
pounds for the comparable period in 2005. Excluding the acquisitions,
shipments were up approximately 4% compared with the 2005 fourth quarter as
customers returned to more normal seasonal buying patterns in 2006 compared
with the inventory destocking that occurred in the fourth quarter of 2005.
Global Rolled and Extruded Products segment income was $45.4 million in
the fourth quarter of 2006, compared with segment income of $36.9 million
in the prior-year period. Excluding the impact of purchase accounting
adjustments which are recorded at the segment level, segment income was
$56.7 million in the fourth quarter of 2006 compared with $40.9 million in
the prior-year period. Increased income was driven primarily by the sale of
the Carson, California property as well as improved volume and
productivity, which more than offset lower material margins and inflation
in freight, energy and other conversion costs.
Excluding acquisitions, material margins for the fourth quarter
decreased to $0.496 per pound, compared with $0.530 in the year-earlier
period due to lower rolling margins and quarter on quarter less favorable
FIFO impact of the rising London Metal Exchange (LME); partially offset by
favorable scrap spreads, productivity and volume. Excluding acquisitions,
cash conversion costs were $0.220 per pound in the fourth quarter, versus
$0.264 per pound in the year earlier period.
Shipments for the former Corus Aluminum were 235 million pounds for the
fourth quarter of 2006 and benefited from continued strength in shipments
to aerospace customers, improved shipments of both rolled and extruded
products to automotive applications, and general strengthening of the
German and other European industrial economies.
Global Rolled and Extruded Products shipments totaled 1.6 billion
pounds for the full year 2006, including approximately 801 million pounds
from acquisitions. This compared with 922 million pounds shipped for full
year 2005, which included 43 million pounds from acquisitions. Legacy
business volumes were down 4% year over year primarily as a result of a
decline in the North American building and construction industry.
Full year 2006 segment income was $180.7 million compared with $160.6
million in the prior year. Excluding the impact of purchase accounting
adjustments which are recorded at the segment level, segment income was
$224.6 million for 2006 compared with $172.5 million in the prior year.
Contributing to the earnings increase were the acquisitions of ALSCO,
certain assets of Ormet and the Corus Aluminum acquisition as well as
improving material margins due to the favorable FIFO impact of the rising
LME and improving scrap spreads. In addition, the segment has continued to
achieve excellent results in its Six Sigma and productivity initiatives.
These factors have more than offset decreases in legacy business volumes,
slightly lower rolling margins, and increases in freight, paint and certain
conversion costs such as labor and natural gas.
Excluding acquisitions, material margins for the full year 2006
improved to $0.519 per pound, compared with $0.489 in 2005 as improved
productivity, the favorable FIFO impact of the LME and improving scrap
spreads more than offset the expected decline in rolling margins. Excluding
acquisitions, cash conversion costs for full year 2006 were $0.223 per
pound, versus $0.226 per pound in the prior year.
Global Recycling
Global Recycling segment income was $14.0 million in the fourth quarter
of 2006 compared with $10.5 million in the fourth quarter of 2005. Fourth
quarter 2006 pounds shipped of 797 million pounds compared with the 785
million pounds shipped in the year-earlier fourth quarter. Results improved
primarily because of benefits from higher margins, the acquisition of
Alumitech and the capture of synergies and operational improvements.
Full year 2006 pounds shipped were 2.9 billion pounds compared with 2.8
billion pounds reported for 2005. Segment income for 2006 was $84.8 million
compared with $41.8 million for the year-earlier period. This improvement
was due primarily to merger-related synergies from the Commonwealth
acquisition and companywide productivity initiatives, benefits from the
2005 acquisitions, other operational improvements and higher margins;
partially offset by underlying inflation.
Global Zinc
Global Zinc segment income of $15.9 million for the fourth quarter of
2006 compared with $6.1 million reported for the same period in 2005.
Fourth quarter 2006 volume of 83 million pounds was 14% lower than in the
fourth quarter of 2005. Excluding the impact of purchase accounting
adjustments which are recorded at the segment level, segment income was
$17.4 million in the fourth quarter of 2006 compared with $6.1 million in
the prior-year period. The substantial increase in Global Zinc's segment
income was due to the significant rise in LME zinc prices in 2006, with the
average LME price of zinc at $1.91 per pound in the fourth quarter of 2006
compared with $0.74 per pound in the comparable period of 2005.
Full year segment income of $65.0 million compared with $21.0 million
for 2005; 2006 volume of 384 million pounds compared with 392 million
pounds reported for the full year 2005.
Corporate Expense
Corporate expense primarily includes corporate general and
administrative expense (G&A), other income/expense and interest expense. In
addition, in order to simplify understanding of ongoing segment operations,
corporate expense includes all restructuring and other charges as well as
non-cash adjustments associated with mark-to-market SFAS No. 133 accounting
for derivative financial instruments. In the fourth quarter of 2006, Aleris
recorded charges of $39.6 million for restructuring and other costs
primarily attributable to Acquisition expenses and $0.7 million for the
early extinguishment of debt related to the Corus Aluminum acquisition,
which were partially offset by $35.4 million of non-cash mark-to-market
SFAS No. 133 unrealized gains on derivative financial instruments. In the
same period of 2005, Aleris recorded expenses of $25.1 million related to
the closure of the Carson rolling mill and $8.2 million of non-cash
mark-to-market SFAS No. 133 unrealized losses on derivative financial
instruments.
Corporate G&A increased 24% to $19.6 million in the fourth quarter of
2006 from $15.8 million in the comparable 2005 period due to the Corus
Aluminum acquisition, increased incentive compensation expense and Aleris's
centralization of certain functions. However, as a percentage of revenues,
corporate G&A expense continued to decline to 1.3% in the fourth quarter of
2006 from 2.5% in the fourth quarter of 2005.
Interest expense for the fourth quarter of 2006 increased to $36.3
million from $11.8 million in the fourth quarter of 2005 due to higher
borrowings associated with the 2005 acquisitions, the refinancing to fund
the Corus Aluminum acquisition, the refinancing to fund TPG's acquisition
of Aleris and higher interest rates.
For full year 2006, corporate G&A increased 25% to $72.8 million from
$58.2 million in the comparable 2005 period due to increased incentive
compensation and higher stock-based compensation expense, the Corus
Aluminum acquisition and the centralization of certain functions. However,
as a percentage of revenues, corporate G&A expense decreased to 1.5% in
2006 from 2.4% in 2005.
Corporate interest and other income/expense of $39.6 million for full
year 2006 included $54.4 million for the early extinguishment of debt,
offset partially by $9.8 million of currency gains and $5.0 million of
interest income.
Interest expense for 2006 increased to $90.6 million from $41.9 million
in the prior-year period because of higher borrowings related to the Corus
Aluminum acquisition and the 2005 acquisitions as well as higher rates.
Capital expenditures were $70.4 million for the fourth quarter of 2006,
compared with $23.2 million for the previous year's quarter. The increase
is attributable to the Corus Aluminum acquisition which accounted for $47.8
million of capital expenditures in the fourth quarter of 2006. Full year
capital expenditures were $123.9 million compared with $62.1 million for
2005. The Corus Aluminum acquisition accounted for $59.9 million of capital
expenditures in 2006.
Conference Call and Webcast Information
Aleris will hold a conference call March 30, 2007 at 10 a.m. Eastern
time. Steven J. Demetriou, Chairman and Chief Executive Officer, and
Michael D. Friday, Executive Vice President and Chief Financial Officer,
will host the call to discuss results.
The call can be accessed by dialing 800-798-2796 or 617-614-6204 and
referencing passcode # 59887614 at least 10 minutes prior to the
presentation, which will begin promptly at 10 a.m. Eastern time. In
addition, the conference call will be broadcast live over the Internet at
http://www.aleris.com.
A replay of the conference call will be posted on the Company's Web
site at http://www.aleris.com. A taped replay of the call will also be available
by dialing 888-286-8010 or 617-801-6888 and referencing passcode #31398704
beginning at 11 a.m. Eastern time, March 30 until 11:59 p.m. Eastern time,
April 13, 2007.
About Aleris
Aleris International, Inc. is a global leader in aluminum rolled
products and extrusions, aluminum recycling and specification alloy
production. Aleris is also a recycler of zinc and a leading U.S.
manufacturer of zinc metal and value-added zinc products that include zinc
oxide and zinc dust. Headquartered in Beachwood, Ohio, a suburb of
Cleveland, the Company operates 49 production facilities in North America,
Europe, South America and Asia, and employs approximately 8,500 employees.
For more information about Aleris, please visit our Web site at
http://www.aleris.com.
SAFE HARBOR REGARDING FORWARD-LOOKING STATEMENTS
Forward-looking statements made in this news release are made pursuant
to the safe harbor provision of the Private Securities Litigation Reform
Act of 1995. These include statements that contain words such as "believe,"
"expect," "anticipate," "intend," "estimate," "should" and similar
expressions intended to connote future events and circumstances, and
include statements regarding future actual and adjusted earnings and
earnings per share; future improvements in margins, processing volumes and
pricing; overall 2007 operating performance; anticipated higher adjusted
effective tax rates; expected cost savings; success in integrating Aleris's
recent acquisitions, including the acquisition of the downstream aluminum
businesses of Corus Group plc; its future growth; an anticipated favorable
economic environment in 2007; future benefits from acquisitions and new
products; expected benefits from changes in the industry landscape and
anticipated synergies resulting from the merger with Commonwealth, the
acquisition of the downstream aluminum businesses of Corus Group plc and
other acquisitions. Investors are cautioned that all forward-looking
statements involve risks and uncertainties, and that actual results could
differ materially from those described in the forward- looking statements.
These risks and uncertainties would include, without limitation, Aleris's
levels of indebtedness and debt service obligations; its ability to
effectively integrate the business and operations of its acquisitions;
further slowdowns in automotive production in the U.S. and Europe; the
financial condition of Aleris's customers and future bankruptcies and
defaults by major customers; the availability at favorable cost of aluminum
scrap and other metal supplies that Aleris processes; the ability of Aleris
to enter into effective metals, natural gas and other commodity
derivatives; continued increases in natural gas and other fuel costs of
Aleris; a weakening in industrial demand resulting from a decline in U.S.
or world economic conditions, including any decline caused by terrorist
activities or other unanticipated events; future utilized capacity of
Aleris's various facilities; a continuation of building and construction
customers and distribution customers reducing their inventory levels and
reducing the volume of Aleris's shipments; restrictions on and future
levels and timing of capital expenditures; retention of Aleris's major
customers; the timing and amounts of collections; currency exchange
fluctuations; future write-downs or impairment charges which may be
required because of the occurrence of some of the uncertainties listed
above; and other risks listed in Aleris's filings with the Securities and
Exchange Commission (the "SEC"), including but not limited to Aleris's
annual report on Form 10-K for the fiscal year ended December 31, 2006,
particularly the section entitled "Risk Factors" contained therein.
Contact: Michael D. Friday
Aleris International, Inc.
Phone # 216-910-3503
Aleris International, Inc.
------------------------------------
Consolidated Statement of Operations
(in millions)
For the Three Months Ended For the Year Ended
December 31 December 31
(unaudited)
--------------------------- --------------------------
2006 2005 2006 2005
(Combined) (Predecessor) (Combined) (Predecessor)
Revenues $1,493.4 $ 625.5 $ 4,748.8 $ 2,429.0
Cost of sales 1,395.3 564.8 4,333.0 2,181.3
------- ------- --------- ----------
Gross Profit 98.1 60.7 415.8 247.7
Selling,
general and
administrative
expense 58.5 26.2 167.4 91.1
Restructuring and
other charges 39.6 25.1 41.9 29.9
(Gains) losses on
derivative
instruments (36.9) 3.5 (30.8) 8.0
------- ------- --------- --------
Operating income 36.9 5.9 237.3 118.7
Interest expense 36.3 11.8 90.6 41.9
Interest income (3.5) (0.5) (5.0) (1.6)
Other (income)
expense, net (15.6) 1.7 (16.7) 1.6
Loss on early
extinguishment
of debt -- 54.4 --
Equity in net
loss of
affiliate 0.7 1.3 -- 1.6
------- ------- --------- --------
Income (loss)
before provision
for income taxes
and minority
interests 19.0 (8.4) 114.0 75.2
Provision for taxes
(benefit from) 8.6 (3.4) 43.6 0.4
------- ------- -------- --------
Income (loss)
before minority 10.4 (5.0) 70.4 74.8
Minority interests,
net of provision
for income taxes (0.5) 0.2 0.1 0.5
------- ------- -------- ---------
Net income (loss) $ 10.9 $ (5.2) $ 70.3 $ 74.3
======= ======= ======= =========
Aleris International, Inc.
--------------------------
Supplementary Information
(in millions)
For the Three Months Ended For the Year Ended
December 31 December 31
(unaudited)
--------------------------- --------------------------
2006 2005 2006 2005
(Combined) (Predecessor) (Combined) (Predecessor)
Depreciation
and
amortization $ 45.7 $ 15.2 $ 109.1 $ 55.0
Capital spending $ 70.4 $ 23.2 $ 123.9 $ 62.1
Segment Reporting
------------------
Shipment Lbs:
Global Rolled and
Extruded
Products 533.7 223.5 1,640.9 922.3
Global Recycling 797.0 784.6 2,889.5 2,804.9
Global Zinc 83.2 96.8 384.1 392.4
------- ------- -------- --------
1,413.9 1,104.9 4,914.5 4,119.6
Revenues:
Global Rolled and
Extruded
Products $ 979.3 $ 303.8 $ 2,726.2 $ 1,246.7
Global Recycling 373.0 259.1 1,489.0 967.9
Global Zinc 155.9 69.0 553.2 244.1
Intersegment
eliminations (14.8) (6.4) (19.6) (29.7)
-------- -------- -------- --------
$ 1,493.4 $ 625.5 $ 4,748.8 $ 2,429.0
Segment Income:
Global Rolled and
Extruded
Products $ 45.4 $ 36.9 $ 180.7 $ 160.6
Global Recycling 14.0 10.5 84.8 41.8
Global Zinc 15.9 6.1 65.0 21.0
-------- -------- -------- --------
Total segment
income $ 75.3 $ 53.5 $ 330.5 $ 223.4
Corporate unallocated:
Corporate G & A (19.6) (15.8) (72.8) (58.2)
Restructuring and
other charges (39.6) (25.1) (41.9) (29.9)
Interest expense (36.3) (11.8) (90.6) (41.9)
Unrealized gains
(losses) on
derivative
instruments 35.4 (8.2) 28.3 (18.6)
Interest and other
(income), net 4.5 (1.0) 14.9 0.4
Loss on early
extinguishment
of debt (0.7) -- (54.4) --
-------- -------- -------- --------
Income (loss)
before provision
for tax and
minority interest $ 19.0 $ (8.4) $ 114.0 $ 75.2
Aleris International, Inc.
------------------------------------
Condensed Consolidated Balance Sheet
(in millions)
December 31, 2006 December 31, 2005
------------------ -----------------
(Successor) (Predecessor)
ASSETS
Current Assets:
Cash $ 126.1 $ 6.8
Accounts receivable, net 698.3 325.1
Inventories 1,023.6 404.8
Derivative financial instruments 77.5 28.0
Other current assets 73.5 46.1
------- -------
Total Current Assets 1,999.0 810.8
PP&E, net 1,223.1 537.8
Goodwill 1,362.4 152.8
Other assets 229.7 52.7
------- -------
TOTAL ASSETS $ 4,814.2 $ 1,554.1
--------- ---------
--------- ---------
LIABILITIES AND STOCKHOLDERS'S EQUITY
Current Liabilities:
Accounts payable $ 560.1 $ 200.8
Accrued liabilities 376.4 135.4
Current maturities of long-term debt 20.5 20.8
------- -------
Total Current Liabilities 957.0 357.0
Deferred income taxes 141.2 51.8
Long-term debt 2,567.5 631.0
Other long-term liabilities 303.1 120.5
Stockholders's Equity 845.4 393.8
------- -------
TOTAL LIABILITIES AND EQUITY $ 4,814.2 $ 1,554.1
--------- ---------
--------- ---------
Aleris International, Inc.
--------------------------------
Reconciliation of Net Income to
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) and EBITDA Excluding Special Items
(in millions)
(unaudited)
For Three Months Ended
December 31
--------------------------
2006 2005
(Combined) (Predecessor)
Net income (loss) $ 10.9 $ (5.2)
Interest expense, net 32.8 11.3
Income taxes 8.6 (3.4)
Minority interests (0.5) 0.2
Depreciation and amortization. 45.7 15.2
EBITDA $ 97.5 $ 18.1
Unrealized (gains) losses on
derivative financial instruments (35.4) 8.2
Restructuring and other charges 39.6 25.1
Non-cash cost of sales impact of
recording acquired assets at
fair value 12.9 4.0
Loss on early extinguishment of debt 0.7 --
Sale of Carson property (13.8) --
Realized (gain) loss on the
currency hedges related to
the Corus Aluminum acquisition -- --
Sponsor management fee -- --
expected savings from Carson
and Corus Aluminum acquisition -- --
------- -------
EBITDA, excluding special items $ 101.5 $ 55.4
Aleris International, Inc.
--------------------------------
Reconciliation of Net Income to
Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA) and EBITDA Excluding Special Items
(in millions)
(unaudited)
For the Year Ended December 31
Pro Forma Reported
2006 2006 2005
(Combined) (Predecessor)
Net income (loss) $ 9.3 $ 70.3 $ 74.3
Interest expense, net 219.7 85.6 40.3
Income taxes 8.6 (3.4) (3.1)
Minority interests (0.5) 0.2 0.1
Depreciation and amortization 45.7 15.2 183.8
EBITDA $ 97.5 $ 18.1 $409.8
Unrealized (gains) losses on
derivative financial instruments (35.4) 8.2 (35.7)
Restructuring and other charges 39.6 25.1 43.1
Non-cash cost of sales impact of
recording acquired assets at
fair value 12.9 4.0 45.5
Loss on early extinguishment
of debt 0.7 -- 54.4
Sale of Carson property (13.8) -- (13.8)
Realized (gain) loss on the
currency hedges related to
the Corus Aluminum acquisition -- -- (9.8)
Sponsor management fee -- -- 9.0
expected savings from Carson
and Corus Aluminum acquisition -- -- 28.0
------- ------- -------
EBITDA, excluding special items $ 101.5 $ 55.4 $ 530.5
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(Logo: http://www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO )
SOURCE Aleris International, Inc.
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Related links:
http://aleris.com/
Photo Notes:
NewsCom: http://www.newscom.com/cgi-bin/prnh/20050504/CLW056LOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Michael D. Friday of Aleris International,
Inc., +1-216-910-3503
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