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 Report (Date of earliest event reported): April 27, 2004
CENTURY ALUMINUM COMPANY
(Exact name of registrant as specified in its charter)
DELAWARE
(State or other jurisdiction of Incorporation)
0-27918
(Commission File Number)
13-3070826
(IRS Employer Identification No.)
2511 GARDEN ROAD
BUILDING A, SUITE 200
MONTEREY, CALIFORNIA
(Address of principal executive offices)
93940
(Zip Code)
(831) 642-9300
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On May 11, 2004, Century Aluminum Company ("Century") filed a Current
Report on Form 8-K (the "Initial Report") announcing its acquisition from
Columbia Ventures Corporation of all of the outstanding equity shares of
Nordural hf ("Nordural"), an Icelandic company that owns a primary aluminum
plant located in Grundartangi, Iceland. This Current Report on Form 8-K/A amends
the Initial Report by including the financial statements of Nordural hf and the
pro forma financial information required under Item 7 of Form 8-K.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements of Business Acquired
Incorporated by reference to the audited financial statements of
Nordural hf which are included in Century's Form 8-K filing dated March 16,
2004.
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(b) Pro Forma Financial Information
PAGE
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UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION
Introduction to Unaudited Pro Forma Consolidated Financial Information........ 4
Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2004........... 5
Notes to Unaudited Pro Forma Consolidated Balance Sheet as of March 31, 2004.. 6
Unaudited Pro Forma Consolidated Statement of Operations for Year Ended
December 31, 2003.......................................................... 7
Notes to Unaudited Pro Forma Consolidated Statement of Operations for Year
Ended December 31, 2003.................................................... 9
Unaudited Pro Forma Consolidated Statement of Operations for Three Months
Ended March 31, 2004.......................................................10
Notes to Unaudited Pro Forma Consolidated Statement of Operations for Three
Months Ended March 31, 2004................................................11
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UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL DATA
The following tables present Century's unaudited pro forma consolidated
balance sheet as of March 31, 2004 and unaudited pro forma consolidated
statement of operations for the year ended December 31, 2003 and the three
months ended March 31, 2004. The unaudited pro forma consolidated financial data
for the year ended December 31, 2003 has been derived from: (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 hf for
the year ended December 31, 2003, which are included herein. The unaudited pro
forma consolidated financial data for the three months ended March 31, 2004 has
been derived from: (1) Century's unaudited consolidated financial statements and
accompanying notes included in its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2004; and (2) the unaudited financial statements of Nordural hf
for the quarter ended March 31, 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 March 31, 2004
gives effect to the following events as if they were consummated on March 31,
2004:
- Century's acquisition of all of the outstanding equity shares of
Nordural;
- Century's issuance and sale of approximately $221 million in common
stock in a registered public offering;
- Century's payment of the remaining $12.0 million of principal under
an outstanding 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 and the three months ended March 31, 2004 gives pro forma
effect to these events as if they were consummated on January 1, 2003.
The Nordural acquisition will 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) will 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 unaudited pro forma consolidated financial data should be read in
conjunction with (1) Century's audited and unaudited consolidated financial
statements and accompanying notes and "Management's Discussion and Analysis of
Financial Condition and Results of Operations," which are included in its Annual
Report on Form 10-K for the year ended December 31, 2003 and Quarterly Report on
Form 10-Q for the three months ended March 31, 2004, respectively; and (2) the
separate audited financial statements and accompanying notes of Nordural hf for
the year ended December 31, 2003 which are included elsewhere in this Form 8-K.
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UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF MARCH 31, 2004
U.S. GAAP PRO FORMA PRO FORMA
CENTURY NORDURAL ADJUSTMENTS CONSOLIDATED
--------- --------- ----------- ------------
(DOLLARS IN THOUSANDS)
ASSETS
CURRENT ASSETS:
Cash and equivalents ........................ $ 54,125 $ 14,380 $ 208,211 (1) $ 66,164
(195,283)(2)
(12,000)(3)
(3,269)(4)
Accounts receivable - net ................... 61,336 9,327 -- 70,663
Due from affiliates ......................... 11,893 3,277 (3,277)(2) 11,893
Inventories ................................. 87,971 12,320 -- 100,291
Prepaid and other current assets ............ 2,938 2,659 -- 5,597
Deferred taxes - current portion ............ 5,528 -- -- 5,528
--------- --------- ----------- ------------
Total current assets ..................... 223,791 41,963 (5,618) 260,136
Property, plant and equipment - net ............ 488,053 214,906 45,094 (2) 748,053
Intangible assets - net ........................ 96,054 -- 102,300 (2) 198,354
Other assets ................................... 30,149 13,015 (13,015)(2) 30,149
--------- --------- ----------- ------------
Total .................................... $ 838,047 $ 269,884 $ 128,761 $ 1,236,692
========= ========= =========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable, trade ..................... $ 35,751 6,238 -- 41,989
Due to affiliates ........................... 28,321 147 -- 28,468
Industrial revenue bonds .................... 7,815 -- -- 7,815
Current portion of long term debt ........... 14,375 -- 14,375
Accrued and other current liabilities ....... 46,952 2,317 -- 49,269
Accrued employee benefits costs - current
portion .................................. 8,747 -- -- 8,747
Deferred Taxes - current portion ............ -- -- -- --
--------- --------- ----------- ------------
Total current liabilities ................ 127,586 23,077 -- 150,663
--------- --------- ----------- ------------
Long Term Debt - net ........................... 322,434 173,927 -- 496,361
Notes Payable - Affiliates ..................... 14,000 -- (12,000)(3) 2,000
Accrued Pension Benefits Costs ................. --
Less current portion ..................... 11,225 -- -- 11,225
Accrued Postretirement Benefits Costs .......... --
Less current portion ..................... 80,285 -- -- 80,285
Other Liabilities .............................. 34,432 3,209 -- 37,641
Due to Affiliates - Less current portion ....... 9,861 -- -- 9,861
Deferred Taxes - Less current portion .......... 54,496 5,490 -- 59,986
--------- --------- ----------- ------------
Total noncurrent liabilities ............. 526,733 182,626 (12,000) 697,359
CONTINGENCIES AND COMMITMENTS
SHAREHOLDER'S 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;
21,214,800 shares outstanding at
March 31, 2004) .......................... 212 -- 90 (1) 302
Capital Stock ............................... -- 59,500 (59,500)(2) --
Additional paid-in capital .................. 174,188 -- 208,121 (1) 382,309
Accumulated Other Comprehensive Income (Loss) (15,042) (140) 140 (2) (15,042)
Retained Earnings (Deficit) ................. (630) 4,821 (4,821)(2) (3,899)
(3,269)(4)
--------- --------- ----------- ------------
Total shareholder's equity ............... 183,728 64,181 140,761 388,670
--------- --------- ----------- ------------
Total .................................... $ 838,047 $ 269,884 $ 128,761 $ 1,236,692
========= ========= =========== ============
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 MARCH 31, 2004
1. Records the proceeds, net of financing costs, from our issuance and sale
of common stock.
2. Reflects the cash payment and allocation of the estimated aggregate
purchase price for Nordural, including acquired cash as defined by the Stock
Purchase Agreement, estimated transaction fees and expenses, a payment of
$25.0 million related to the commencement of the expansion and the estimated
change in Net Debt from December 31, 2003 to the date of closing as defined
in the Stock Purchase Agreement.
PURCHASE PRICE:
Purchase price......................... $ 175,000
Acquired cash.......................... 9,898
Change in Net Debt..................... 7,733
Transaction fees and expenses.......... 2,652
---------
Total purchase price................... $ 195,283
=========
PRELIMINARY ALLOCATION OF PURCHASE PRICE:
Current assets......................... $ 38,686
Property, plant and equipment.......... 260,000
Goodwill............................... 102,300
Current liabilities.................... (23,077)
Noncurrent liabilities................. (182,626)
---------
Total purchase price................... $ 195,283
=========
3. Reflects the payment of a portion of the outstanding principal under the
promissory note payable to Glencore.
4. Reflects the payment of dividends on our 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 (5,054)(1) 808,457
(3,164)(2)
--------- --------- ----------- --------- ----------- ------------
Gross profit ...................... 48,038 18,936 (231) 18,705 8,218 74,961
Selling, general and administrative
expenses ....................... 20,833 558 -- 558 -- 21,391
--------- --------- ----------- --------- ----------- ------------
Operating income .................. 27,205 18,378 (231) 18,147 8,218 53,570
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 -- 3,063
Other income (expense) - net ...... (688) -- -- -- -- (688)
--------- --------- ----------- --------- ----------- ------------
Income (loss) before income taxes
and minority interest .......... 8,699 16,040 (231) 15,809 9,118 33,626
Income tax benefit (expense) ...... (2,841) (2,887) 41 (2,846) (3,191)(4) (11,565)
(2,687)(5)
--------- --------- ----------- --------- ----------- ------------
Income (loss) before minority
interest and cumulative effect
of change in accounting
principle ...................... 5,858 13,153 (190) 12,963 3,240 22,061
Minority interest ................. 986 -- -- -- -- 986
--------- --------- ----------- --------- ----------- ------------
Income (loss) before cumulative
effect of change in accounting
principle ...................... 6,844 13,153 (190) 12,963 3,240 23,047
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 3,240 17,169
Preferred dividends ............... (2,000) -- -- -- -- (2,000)
--------- --------- ----------- --------- ----------- ------------
Net income (loss) applicable to
common shareholders ............ $ (1,034) $ 13,153 $ (190) $ 12,963 $ 3,240 $ 15,169
========= ========= =========== ========= =========== ============
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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)
EARNINGS (LOSS) PER COMMON
SHARE:
Basic
Income (loss) before cumulative
effect of change in accounting
principle....................... $ 0.23 $ 0.70
Cumulative effect of change in
accounting principle............ (0.28) (0.20)
--------- ------------
Net income (loss)....... $ (0.05) $ 0.50
========= ============
Diluted:
Income (loss) before cumulative
effect of change in accounting
principle....................... $ 0.23 0.70
Cumulative effect of change in
accounting principle............ (0.28) (0.20)
--------- ------------
Net income (loss)....... $ (0.05) $ 0.50
========= ============
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(IN THOUSANDS):
Basic........................... 21,073 9,000(6) 30,073
========= =========== ============
Diluted......................... 21,099 9,000(6) 30,099
========= =========== ============
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 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. Reflects an adjustment to record income tax expense for the effects of the
pro forma adjustments using an effective tax rate of 35%.
5. 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%.
6. Records the additional shares outstanding from our issuance and sale of
common stock at an offering price of $24.50 per share.
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UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2004
U.S. GAAP PRO FORMA PRO FORMA
CENTURY NORDURAL ADJUSTMENTS CONSOLIDATED
--------- --------- ----------- ------------
(DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA)
NET SALES:
Third-party customers.............. $ 192,346 $ 29,387 $ -- $ 221,733
Related parties.................... 39,748 -- -- 39,748
--------- --------- ----------- ------------
232,094 29,387 -- 261,481
Cost of goods sold................. 195,045 21,406 (1,272)(1) 214,851
-- -- (328)(2) --
--------- --------- ----------- ------------
Gross profit....................... 37,049 7,981 1,600 41,222
Selling, general and administrative
expenses........................ 5,408 -- -- 5,408
--------- --------- ----------- ------------
Operating income................... 31,641 7,981 1,600 46,630
Interest expense - third party..... (10,374) (1,327) -- (11,701)
Interest expense - related party... (329) -- 300 (3) (29)
Interest income.................... 96 -- -- 96
Net gain (loss) on forward
contracts....................... (12,820) -- -- (12,820)
Investment income.................. -- 108 -- 108
Other income (expense) - net....... (614) -- -- (614)
--------- --------- ----------- ------------
Income (loss) before income taxes
and minority interest........... 7,600 6,762 1,900 16,262
Income tax benefit (expense)....... (2,800) (1,217) (665)(4) (5,832)
-- -- (1,150)(5) --
--------- --------- ----------- ------------
Net income (loss).................. 4,800 5,545 85 10,430
Preferred dividends................ (500) -- -- (500)
--------- --------- ----------- ------------
Net income (loss) applicable to
common shareholders............. $ 4,300 $ 5,545 $ 85 $ 9,930
========= ========= =========== ============
EARNINGS (LOSS) PER COMMON
SHARE:
Basic
Net income (loss)....... $ 0.20 $ 0.33
========= ============
Diluted:
Net income (loss)....... $ 0.20 $ 0.33
========= ============
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING
(IN THOUSANDS):
Basic........................... 21,195 9,000 (6) 30,195
========= =========== ============
Diluted......................... 21,384 9,000 (6) 30,384
========= =========== ============
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
THREE MONTHS ENDED MARCH 31, 2004
1. Reflects an adjustment to depreciation expense based on the 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. Reflects an adjustment to record income tax expense for the effects of the
pro forma adjustments using an effective tax rate of 35%.
5. 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%.
6. Records the additional shares outstanding from our issuance and sale of
common stock at an offering price of $24.50 per share.
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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: July 9, 2004 By: /s/ Peter C. McGuire
-------------------------------------
Name: Peter C. McGuire
Title: Vice President and
Associate General Counsel
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EXHIBIT INDEX
Exhibit Number Description
-------------- -----------
2.1 Amended and Restated Stock Purchase Agreement, dated as
of March 28, 2004, by and among Century, CVC and
Nordural *
*Incorporated by reference to Exhibit 2.1 of the Company's Current Report on
Form 8-K filed on March 29, 2004. Schedules and exhibits have been omitted and
will be furnished to the Securities and Exchange Commission upon request.
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