Constellium Reports Third Quarter 2017 Financial Results
(Thomson Reuters ONE) -
AMSTERDAM, The Netherlands, Oct. 26, 2017 (GLOBE NEWSWIRE) -- Constellium N.V.
(NYSE:CSTM) (Euronext Paris:CSTM) today reported results for third quarter ended
September 30, 2017.
* Shipments of 374 thousand metric tons, down 1% compared to Q3 2016;
Automotive shipments up 32% compared to Q3 2016
* Revenue of ?1.3 billion, up 7% compared to Q3 2016 on higher aluminium
prices
* Net income of ?21 million compared to ?15 million in Q3 2016
* Adjusted EBITDA of ?111 million, up 15% from Q3 2016; YTD 2017 Adjusted
EBITDA up 12% from YTD 2016
* Significant improvement in Free Cash Flow compared to YTD 2016
* "Project 2019" initiatives progressing; YTD run-rate cost savings of ?15
million achieved
Jean-Marc Germain, Constellium's Chief Executive Officer said, "Constellium
delivered another quarter of strong performance. Automotive Structures and
Industry reported record third quarter Adjusted EBITDA on solid operational
performance and continued strong demand. Aerospace and Transportation built on
the momentum of the first half and delivered substantially improved results.
Packaging and Automotive Rolled Products results were comparable to the prior
year despite continued incremental costs from our automotive readiness program
in the U.S. On 'Project 2019', I am pleased with the progress that we have made
and believe that we have substantial opportunities remaining."
Mr. Germain continued, "Given our year-to-date performance and our current
outlook, we are increasing our guidance for Adjusted EBITDA growth in 2017 to
around 13%. This performance is another meaningful step toward achieving our
guidance of over ?500 million of Adjusted EBITDA in 2020. Our focus remains on
delivering on our strategy and increasing value for our shareholders."
* Group Summary
+-----+-----+-----+-----+-----+---------------------+
| Q3| Q3| | YTD| YTD| |
| 2017| 2016| Var.| 2017| 2016| Var.|
+--------------------------+-----+-----+-----+-----+-----+---------------------+
|Shipments (k metric tons) | 374| 377|(1 )%|1,132|1,126| 1 % |
+--------------------------+-----+-----+-----+-----+-----+---------------------+
|Revenue (? millions) |1,279|1,199| 7 % |3,989|3,582| 11 % |
+--------------------------+-----+-----+-----+-----+-----+---------------------+
|Net income (? millions) | 21| 15|38 % | 49| 16|200 % |
+--------------------------+-----+-----+-----+-----+-----+---------------------+
|Adjusted EBITDA (? | | | | | | |
|millions) | 111| 97|15 % | 331| 296| 12 % |
+--------------------------+-----+-----+-----+-----+-----+---------------------+
|Adjusted EBITDA per metric| | | | | | |
|ton (?) | 298| 257|16 % | 293| 263| 11 % |
+--------------------------+-----+-----+-----+-----+-----+---------------------+
Adjusted EBITDA per metric ton and percentage changes are calculated on
unrounded underlying figures.
The difference between the sum of reported segment revenue and total group
revenue includes revenue from certain non-core activities, inter-segment
eliminations, and the impact of a ?20 million one-time payment related to the
renegotiation of a customer agreement, which was recorded in the first quarter
of 2016 as a reduction of revenues at the Holdings and Corporate level. The
difference between the sum of reported segment Adjusted EBITDA and the Group
Adjusted EBITDA is related to Holdings and Corporate.
For the third quarter of 2017, shipments of 374k metric tons decreased slightly
compared to the third quarter of 2016 primarily due to lower shipments in
Packaging and Automotive Rolled Products. Revenue of ?1.3 billion increased 7%
compared to the third quarter of last year due primarily to higher aluminium
prices. Net income of ?21 million improved from ?15 million in the third quarter
of 2016. Adjusted EBITDA of ?111 million increased 15% from the third quarter of
last year on improved results from the Aerospace and Transportation and the
Automotive Structures and Industry business units.
For the first nine months of 2017, shipments of 1,132k metric tons increased 1%
compared to the first nine months of 2016 on higher shipments in Automotive
Structures and Industry partially offset by lower shipments in Packaging and
Automotive Rolled Products and Aerospace and Transportation. Revenue of ?4.0
billion increased 11% compared to the first nine months of last year due
primarily to higher aluminium prices. Net income of ?49 million improved from
?16 million in the first nine months of 2016. Adjusted EBITDA of ?331 million
increased by 12% compared to the first nine months of last year due primarily to
improved results from the Aerospace and Transportation and the Automotive
Structures and Industry business units.
* Results by Segment
* Packaging & Automotive Rolled Products (P&ARP)
+----+----+-----+-----+-----+----------------------+
| Q3| Q3| | YTD| YTD| |
|2017|2016| Var.| 2017| 2016| Var.|
+---------------------------+----+----+-----+-----+-----+----------------------+
|Shipments (k metric tons) | 258| 265|(3 )%| 770| 777| (1 )% |
+---------------------------+----+----+-----+-----+-----+----------------------+
|Revenue (? millions) | 705| 655| 8 % |2,146|1,887| 14 % |
+---------------------------+----+----+-----+-----+-----+----------------------+
|Adjusted EBITDA (? | | | | | | |
|millions) | 60| 60| 1 % | 158| 158| 0 % |
+---------------------------+----+----+-----+-----+-----+----------------------+
|Adjusted EBITDA per metric | | | | | | |
|ton (?) | 234| 226| 3 % | 205| 203| 1 % |
+---------------------------+----+----+-----+-----+-----+----------------------+
Adjusted EBITDA per metric ton and percentage changes are calculated on
unrounded underlying figures.
Third quarter Adjusted EBITDA was comparable to the third quarter of 2016
primarily due to improved price and mix from increased Automotive rolled product
shipments offset by lower packaging rolled product shipments and incremental
costs from our automotive readiness program in the U.S.
For the third quarter of 2017, shipments of 258k metric tons declined 3% from
the third quarter of last year due to lower Packaging rolled product shipments,
partially offset by a 48% increase in Automotive rolled product shipments.
Revenue of ?705 million increased 8% compared to the third quarter of 2016 as a
result of higher aluminium prices.
For the first nine months of 2017, Adjusted EBITDA of ?158 million was
comparable to same period of the prior year as improved price and mix was offset
by lower packaging rolled product shipments and incremental costs from our
automotive readiness program in the U.S. Shipments of 770k metric tons decreased
slightly compared to the first nine months of last year as lower Packaging
rolled product shipments were largely offset by higher Automotive rolled product
shipments. Revenue of ?2.1 billion increased 14% compared to the first nine
months of last year due to higher aluminium prices.
* Aerospace & Transportation (A&T)
+----+----+-----+-----+----+-----------------------+
| Q3| Q3| | YTD| YTD| |
|2017|2016| Var.| 2017|2016| Var.|
+---------------------------+----+----+-----+-----+----+-----------------------+
|Shipments (k metric tons) | 58| 59|(1 )%| 182| 184|(1 )% |
+---------------------------+----+----+-----+-----+----+-----------------------+
|Revenue (? millions) | 307| 313|(2 )%|1,016| 979| 4 % |
+---------------------------+----+----+-----+-----+----+-----------------------+
|Adjusted EBITDA (? | | | | | | |
|millions) | 30| 20|47 % | 99| 81|22 % |
+---------------------------+----+----+-----+-----+----+-----------------------+
|Adjusted EBITDA per metric | | | | | | |
|ton (?) | 512| 344|49 % | 541| 439|23 % |
+---------------------------+----+----+-----+-----+----+-----------------------+
Adjusted EBITDA per metric ton and percentage changes are calculated on
unrounded underlying figures.
Third quarter Adjusted EBITDA increased significantly as compared to the third
quarter of 2016 due to better price and mix, continued success in developing the
TID end markets, and solid cost performance.
For the third quarter of 2017, shipments of 58k metric tons were down slightly
compared to the third quarter of 2016 as lower Aerospace rolled product
shipments were largely offset by higher Transportation, Industry and Other
rolled product shipments. Revenue of ?307 million fell by 2% compared to the
third quarter of last year on lower aerospace rolled product shipments partially
offset by higher aluminum prices and higher Transportation, Industry and Other
rolled product shipments.
For the first nine months of 2017, Adjusted EBITDA of ?99 million increased 22%
compared to the first nine months of 2016 on better price and mix, strong
operating cost performance and continued success in developing TID end markets.
Shipments of 182k metric tons decreased slightly as compared to the same period
in the prior year. Revenue of ?1.0 billion increased 4% compared to the first
nine months of last year primarily on higher aluminium prices.
* Automotive Structures & Industry (AS&I)
+----+----+----+----+----+-----------------------+
| Q3| Q3| | YTD| YTD| |
|2017|2016|Var.|2017|2016| Var.|
+-----------------------------+----+----+----+----+----+-----------------------+
|Shipments (k metric tons) | 58| 53|10 %| 180| 168| 7 % |
+-----------------------------+----+----+----+----+----+-----------------------+
|Revenue (? millions) | 275| 242|14 %| 849| 769|10 % |
+-----------------------------+----+----+----+----+----+-----------------------+
|Adjusted EBITDA (? millions) | 28| 25|13 %| 92| 81|13 % |
+-----------------------------+----+----+----+----+----+-----------------------+
|Adjusted EBITDA per metric | | | | | | |
|ton (?) | 486| 471| 3 %| 510| 485| 5 % |
+-----------------------------+----+----+----+----+----+-----------------------+
Adjusted EBITDA per metric ton and percentage changes are calculated on
unrounded underlying figures.
Third quarter Adjusted EBITDA increased compared to the third quarter of last
year primarily due to higher shipments of both Automotive and Other extruded
products on strong market demand and solid cost control.
For the third quarter of 2017, shipments of 58k metric tons increased 10%
compared to the third quarter of last year. Revenue of ?275 million increased
14% compared to the third quarter of 2016 primarily on higher aluminium prices.
For the first nine months of 2017, Adjusted EBITDA of ?92 million increased 13%
compared to the first nine months of last year on higher shipments and solid
cost control. Shipments of 180k metric tons increased 7% compared to the first
nine months of last year on strong market demand. Revenue of ?849 million
increased 10% compared to the first nine months of 2016 primarily as a result of
higher aluminium prices.
* Net income
For the third quarter of 2017, net income of ?21 million improved from ?15
million in the third quarter of 2016. The change in net income is primarily
attributable to the improvement in Adjusted EBITDA, lower finance costs and a
favorable change in unrealized derivatives, partially offset by a contractual
purchase price adjustment in 2016 related to the acquisition of Wise Metals.
For the first nine months of 2017, net income of ?49 million improved from ?16
million in the first nine months of 2016. The change in net income is primarily
attributable to the improvement in Adjusted EBITDA, gains from pension plan
amendments, a one-time impact in connection with the re-negotiation of terms of
a customer contract in 2016, partially offset by an unfavorable change in
unrealized derivatives, the contractual purchase price adjustment noted above,
and a higher share of loss of joint-ventures.
* Cash flow and Liquidity
For the first nine months of 2017, Free Cash Flow was an outflow of ?19 million
as compared to an outflow of ?160 million in the same period of the prior year.
The significant improvement as compared to the first nine months of last year
was primarily due to higher Adjusted EBITDA and lower capital expenditures.
Cash flows from operating activities were ?157 million for the first nine months
of 2017 as compared to ?88 million in the first nine months of last year.
Constellium reduced factored receivables by ?93 million in the first nine months
of 2017 as compared to an increase of ?82 million in the first nine months of
last year.
Cash flows used in investing activities were ?176 million for the first nine
months of 2017 as compared to cash flows used in investing activities of ?233
million in the first nine months of last year.
Cash flows used in financing activities were ?22 million for the first nine
months of 2017 as compared to cash flows from financing activities of ?285
million in the first nine months of last year.
Liquidity at September 30, 2017 was ?557 million, comprised of ?300 million of
cash and cash equivalents and ?257 million available under our committed lending
facilities and factoring arrangements. This compares to liquidity at December
31, 2016 of ?537 million and cash and cash equivalents of ?347 million.
Net debt was ?1,987 million at September 30, 2017, as compared to ?2,035 million
at December 31, 2016.
* Outlook
We are updating our guidance for Adjusted EBITDA growth in 2017 to around 13%.
We continue to expect Adjusted EBITDA growth in the high single digits annually
for the next three years, leading to over ?500 million of Adjusted EBITDA in
2020.
The Company is not able to provide a reconciliation of this Adjusted EBITDA
guidance to net income, the comparable GAAP measure, because certain items that
are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in
our control. In particular, it is unable to forecast the timing or magnitude of
realized and unrealized gains and losses on derivative instruments, metal lag,
impairment or restructuring charges, or taxes without unreasonable efforts, and
these items could significantly impact, either individually or in the aggregate,
net income in the future.
* Project 2019
"Project 2019" is well underway with a wide range of cost reduction and cash
flow improvement initiatives throughout the Company. To date, the Company has
achieved ?15 million of run rate cost savings. In addition, the Company has made
significant progress reducing trade working capital. Capital expenditures are on
track to meet the Company's previous guidance of ?275 million for 2017, an ?80
million reduction compared to 2016.
* Forward-looking statements
Certain statements contained in this press release may constitute forward-
looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. This press release may contain "forward looking statements"
with respect to our business, results of operations and financial condition, and
our expectations or beliefs concerning future events and conditions. You can
identify forward-looking statements because they contain words such as, but not
limited to, "believes," "expects," "may," "should," "approximately,"
"anticipates," "estimates," "intends," "plans," "targets," likely," "will,"
"would," "could" and similar expressions (or the negative of these terminologies
or expressions). All forward-looking statements involve risks and
uncertainties. Many risks and uncertainties are inherent in our industry and
markets. Others are more specific to our business and operations. These risks
and uncertainties include, but are not limited to, the ability of Constellium
and Wise Metals to achieve expected synergies and the timing thereof,
Constellium's increased levels of indebtedness which could limit Constellium's
operating flexibility and opportunities; the potential failure to retain key
employees, the loss of customers, suppliers and other business relationships;
disruptions to business operations; slower or lower than expected growth in the
North American market for Body-in-White aluminium rolled products, and other
risk factors set forth under the heading "Risk Factors" in our Annual Report on
Form 20-F, and as described from time to time in subsequent reports filed with
the U.S. Securities and Exchange Commission. The occurrence of the events
described and the achievement of the expected results depend on many events,
some or all of which are not predictable or within our control. Consequently,
actual results may differ materially from the forward-looking statements
contained in this press release. We undertake no obligation to update or revise
any forward-looking statement as a result of new information, future events or
otherwise, except as required by law.
* About Constellium
Constellium (NYSE:CSTM) (Euronext Paris:CSTM) is a global sector leader that
develops innovative, value added aluminium products for a broad scope of markets
and applications, including aerospace, automotive and packaging. Constellium
generated ?4.7 billion of revenue in 2016.
Constellium's earnings materials for the quarter ended September 30, 2017 are
also available on the company's website (www.constellium.com).
CONSOLIDATED INCOME STATEMENT
Three months Three months Nine months Nine months
ended ended ended ended
September September September September
(in millions of 30, 2017 30, 2016 30, 2017 30, 2016
Euros) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
------------------ -------------- -------------- -------------- -------------
Revenue 1,279 1,199 3,989 3,582
Cost of sales (1,140) (1,059) (3,560) (3,188)
-------------- -------------- -------------- -------------
Gross profit 139 140 429 394
-------------- -------------- -------------- -------------
Selling and
administrative
expenses (61) (66) (188) (190)
Research and
development
expenses (9) (8) (28) (22)
Restructuring
costs (1) (1) (3) (5)
Other gains /
(losses) - net 12 19 43 40
-------------- -------------- -------------- -------------
Income from
operations 80 84 253 217
-------------- -------------- -------------- -------------
Finance costs -
net (34) (45) (127) (130)
Share of loss of
joint-ventures (8) (6) (21) (8)
-------------- -------------- -------------- -------------
Income before
income tax 38 33 105 79
-------------- -------------- -------------- -------------
Income tax
expense (17) (18) (56) (63)
-------------- -------------- -------------- -------------
Net income 21 15 49 16
-------------- -------------- -------------- -------------
Net income /
(loss)
attributable to:
Equity holders
of Constellium 21 15 50 16
Non-controlling
interests - - (1) -
-------------- -------------- -------------- -------------
Net income 21 15 49 16
-------------- -------------- -------------- -------------
Earnings per
share
attributable to
the equity
holders of
Constellium, in
euros
Basic 0.20 0.15 0.48 0.15
Diluted 0.20 0.14 0.46 0.15
Weighted average
shares, in
thousands
Basic 105,663 105,505 105,591 105,483
Diluted 108,823 106,472 108,814 106,309
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS)
Three months Three months Nine months Nine months
ended ended ended ended
September September September September
(in millions of 30, 2017 30, 2016 30, 2017 30, 2016
Euros) (unaudited) (unaudited) (unaudited) (unaudited)
----------------- --------------- --------------- --------------- -------------
Net income 21 15 49 16
--------------- --------------- --------------- -------------
Other
comprehensive
income / (loss)
Items that will
not be
reclassified
subsequently to
the
consolidated
income
statement
Remeasurement
of post-
employment
benefit
obligations 5 (5 ) 22 (103 )
Income tax on
remeasurement
of post-
employment
benefit
obligations - 1 (2 ) 27
Items that may
be reclassified
subsequently to
the
consolidated
income
statement
Cash flow hedge 13 4 42 (2 )
Income tax on
cash flow hedge (5 ) (1 ) (14 ) 1
Currency
translation
differences (7 ) - (20 ) 2
--------------- --------------- --------------- -------------
Other
comprehensive
income / (loss) 6 (1 ) 28 (75 )
--------------- --------------- --------------- -------------
Total
comprehensive
income / (loss) 27 14 77 (59 )
--------------- --------------- --------------- -------------
Attributable
to:
Equity holders
of Constellium 28 14 79 (59 )
Non-controlling
interests (1 ) - (2 ) -
--------------- --------------- --------------- -------------
Total
comprehensive
income / (loss) 27 14 77 (59 )
--------------- --------------- --------------- -------------
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At September
30, At December
2017 31,
(in millions of Euros) (Unaudited) 2016
----------------------------------------------- ---------------- --------------
Assets
Current assets
Cash and cash equivalents 300 347
Trade receivables and other 435 355
Inventories 612 591
Other financial assets 45 117
---------------- --------------
1,392 1,410
---------------- --------------
Non-current assets
Property, plant and equipment 1,460 1,477
Goodwill 409 457
Intangible assets 74 79
Investments accounted for under the equity
method 1 16
Deferred income tax assets 204 252
Trade receivables and other 45 47
Other financial assets 97 49
---------------- --------------
2,290 2,377
---------------- --------------
Total Assets 3,682 3,787
---------------- --------------
Liabilities
Current liabilities
Trade payables and other 943 839
Borrowings 101 107
Other financial liabilities 20 34
Income tax payable 18 13
Provisions 39 42
---------------- --------------
1,121 1,035
---------------- --------------
Non-current liabilities
Trade payables and other 56 59
Borrowings 2,156 2,361
Other financial liabilities 37 30
Pension and other post-employment benefit
obligations 661 735
Provisions 102 107
Deferred income tax liabilities 36 30
---------------- --------------
3,048 3,322
---------------- --------------
Total Liabilities 4,169 4,357
---------------- --------------
Equity
Share capital 2 2
Share premium 162 162
Retained deficit and other reserves (658 ) (743 )
---------------- --------------
Equity attributable to equity holders of
Constellium (494 ) (579 )
Non-controlling interests 7 9
---------------- --------------
Total Equity (487 ) (570 )
---------------- --------------
Total Equity and Liabilities 3,682 3,787
---------------- --------------
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
Foreign
Currency Total
Re- Cash Trans- Other Re- Equity Non-
(in millions Share Share measure- flow lation re- tained holders of controlling Total
of Euros) Capital Premium ment hedges reserve serves losses Constellium interests equity
--------------- --------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
At January 2 162 (151) (18) 12 17 (603) (579) 9 (570)
1, 2017
Net income / - - - - - - 50 50 (1) 49
(loss)
Other compre-
hensive - - 20 28 (19) - - 29 (1) 28
income /
(loss)
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
Total compre-
hensive - - 20 28 (19) - 50 79 (2) 77
income /
(loss)
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
Transactions
with Equity
holders
Share-based - - - - - 6 - 6 - 6
compensation
Transactions
with non- - - - - - - - - - -
controlling
interests
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
At September 2 162 (131) 10 (7) 23 (553) (494) 7 (487)
30, 2017
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
Foreign
Currency Total
Re- Cash Trans- Other Re- Equity Non-
(in millions Share Share measure- flow lation re- tained holders of controlling Total
of Euros) Capital Premium ment hedges reserve serves losses Constellium interests equity
--------------- --------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
At January 2 162 (133) - 6 11 (599) (551) 11 (540)
1, 2016
Net Income - - - - - - 16 16 - 16
Other
comprehensive - - (76) (1) 2 - - (75) - (75)
(loss) /
income
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
Total
comprehensive - - (76) (1) 2 - 16 (59) - (59)
income /
(loss)
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
Transactions
with Equity
holders
Share-based - - - - - 5 - 5 - 5
compensation
Transactions
with non- - - - - - - - - (2) (2)
controlling
interests
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
At September 2 162 (209) (1) 8 16 (583) (605) 9 (596)
30, 2016
--------- --------- ---------- -------- ---------- -------- -------- ------------- ------------- -------
CONSOLIDATED STATEMENT OF CASH FLOWS
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
(in millions of 2017 2016 2017 2016
Euros) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
--------------- --------------- --------------- --------------
Net income 21 15 49 16
Adjustments
Depreciation
and amortization 41 37 125 109
Finance costs
- net 34 45 127 130
Income tax
expense 17 18 56 63
Share of loss
of joint-
ventures 8 6 21 8
Unrealized
(gains) / losses
on derivatives -
net and from
remeasurement of
monetary assets
and liabilities
- net (24 ) (11 ) (38 ) (66 )
Losses on
disposal - 1 2 -
Other - net 2 (19 ) 5 (14 )
Interest paid* (48 ) (27 ) (128 ) (102 )
Income tax paid 6 (5 ) (1 ) (11 )
Change in trade
working capital
Inventories (20 ) (33 ) (57 ) (21 )
Trade
receivables 55 (15 ) (115 ) (53 )
Trade payables (31 ) 5 121 42
Change in
provisions and
pension
obligations 2 (2 ) (20 ) (6 )
Other working
capital 13 25 10 (7 )
--------------- --------------- --------------- --------------
Net cash flows
from operating
activities 76 40 157 88
--------------- --------------- --------------- --------------
Purchases of
property, plant
and equipment (55 ) (74 ) (175 ) (230 )
Acquisition of
subsidiaries net
of cash acquired - 20 - 20
Proceeds from
disposals net of
cash - (1 ) - (5 )
Equity
contributions
and loans to
joint-ventures - (4 ) (24 ) (27 )
Other investing
activities 14 3 23 9
--------------- --------------- --------------- --------------
Net cash flows
used in
investing
activities (41 ) (56 ) (176 ) (233 )
--------------- --------------- --------------- --------------
Proceeds from
issuance of
Senior Notes - - 610 375
Repayments of
Senior Notes - - (610 ) -
Proceeds /
(Repayments)
from revolving
credit
facilities and
other loans (11 ) 16 7 (71 )
Payment of
deferred
financing costs
and exit costs - - (42 ) (12 )
Transactions
with non-
controlling
interests - (3 ) - (2 )
Other financing
activities (9 ) (2 ) 13 (5 )
--------------- --------------- --------------- --------------
Net cash flows
(used in) / from
financing
activities (20 ) 11 (22 ) 285
--------------- --------------- --------------- --------------
Net increase /
(decrease) in
cash and cash
equivalents 15 (5 ) (41 ) 140
Cash and cash
equivalents -
beginning of
period 286 622 347 472
Cash and cash
equivalents
classified as
held for sale -
beginning of
period - - - 4
Effect of
exchange rate
changes on cash
and cash
equivalents (1 ) 1 (6 ) 2
--------------- --------------- --------------- --------------
Cash and cash
equivalents -
end of period 300 618 300 618
--------------- --------------- --------------- --------------
* In Q4 2016, we changed the presentation of interest paid in our cash flow
statement. Interest paid, which was previously reported as financing cash
flows, is now reported as operating cash flows. Prior year numbers were
reclassified to conform to the current year presentation.
SEGMENT ADJUSTED EBITDA
Three months Three months Nine months Nine months
ended ended ended ended
(in millions September September September September
of Euros) 30, 2017 30, 2016 30, 2017 30, 2016
---------------- --------------- --------------- --------------- --------------
P&ARP 60 60 158 158
A&T 30 20 99 81
AS&I 28 25 92 81
Holdings and
Corporate (7 ) (8 ) (18 ) (24 )
--------------- --------------- --------------- --------------
Total 111 97 331 296
--------------- --------------- --------------- --------------
SHIPMENTS AND REVENUE BY PRODUCT LINE
Three months Three months Nine months Nine months
ended ended ended ended
September September September September
(in k metric tons) 30, 2017 30, 2016 30, 2017 30, 2016
-------------------- -------------- -------------- -------------- -------------
Packaging rolled
products 206 226 622 658
Automotive rolled
products 41 28 114 85
Specialty and
other thin-rolled
products 11 11 34 34
Aerospace rolled
products 24 27 80 88
Transportation,
industry and other
rolled products 34 32 102 96
Automotive
extruded products 27 24 83 76
Other extruded
products 31 29 97 92
Other - - - (3 )
-------------- -------------- -------------- -------------
Total shipments 374 377 1,132 1,126
-------------- -------------- -------------- -------------
(in millions of
Euros)
--------------------
Packaging rolled
products 532 531 1,648 1,511
Automotive rolled
products 128 79 355 235
Specialty and
other thin-rolled
products 45 45 143 141
Aerospace rolled
products 168 188 576 598
Transportation,
industry and other
rolled products 139 125 440 381
Automotive
extruded products 150 129 459 409
Other extruded
products 125 113 390 360
Other and inter-
segment
eliminations* (8 ) (11 ) (22 ) (53 )
-------------- -------------- -------------- -------------
Total revenue 1,279 1,199 3,989 3,582
-------------- -------------- -------------- -------------
* Includes ?20 million one-time payment related to the renegotiation of a
customer agreement, which was recorded in the first quarter of 2016 as a
reduction of revenues at the Holdings and Corporate level.
NON-GAAP MEASURES
Reconciliation of net income to Adjusted EBITDA (a non-GAAP measure)
Three months Three months Nine months Nine months
ended ended ended ended
(in millions of September September September September
Euros) 30, 2017 30, 2016 30, 2017 30, 2016
-------------------- -------------- -------------- -------------- -------------
Net income 21 15 49 16
Income tax expense 17 18 56 63
Income before
income tax 38 33 105 79
Finance costs -
net 34 45 127 130
Share of loss of
joint-ventures 8 6 21 8
Income from
operations 80 84 253 217
Depreciation and
amortization 41 37 125 109
Restructuring
costs 1 1 3 5
Unrealized losses
/ (gains) on
derivatives (22 ) (12 ) (40 ) (65 )
Unrealized
exchange losses /
(gains) from
remeasurement of
monetary assets
and liabilities -
net (2 ) 1 3 (1 )
Losses / (gains)
on pension plans
amendments ((A)) 2 - (20 ) -
Share based
compensation 3 2 6 5
Metal price lag
((B)) 4 (2 ) (16 ) 3
Start-up and
development costs
((C)) 4 3 14 16
Manufacturing
system and process
transformation
costs - - 1 4
Wise integration
and acquisition
costs - - - 2
Wise one-time
costs ((D)) - - - 20
Wise purchase
price adjustment
((E)) - (19 ) - (19 )
Losses on
disposals - - 2 -
Other ((F)) - 2 - -
-------------- -------------- -------------- -------------
Adjusted EBITDA 111 97 331 296
-------------- -------------- -------------- -------------
(A) In the nine months ended September 30, 2017, amendments to certain Swiss
pension plan, US pension plan and OPEB resulted in a ?20 million gain net.
(B) Metal price lag represents the financial impact of the timing difference
between when aluminium prices included within Constellium revenues are
established and when aluminium purchase prices included in Cost of sales are
established. The Group accounts for inventory using a weighted average price
basis and this adjustment aims to remove the effect of volatility in LME
prices. The calculation of the Group metal price lag adjustment is based on an
internal standardized methodology calculated at each of Constellium's
manufacturing sites and is calculated as the average value of product recorded
in inventory, which approximates the spot price in the market, less the
average value transferred out of inventory, which is the weighted average of
the metal element of cost of sales, based on the quantity sold in the period.
(C) For the nine months ended September 30, 2017, start-up costs and
development costs include ?12 million related to new sites in our AS&I
operating segment and ?2 million to BiW/ABS growth projects both in Europe and
the US. For the nine months ended September 30, 2016, start-up costs and
development costs include ?13 million related to BiW/ABS growth projects.
(D) For the nine months ended September 30, 2016, Wise one-time costs related
to a one-time payment of ?20 million, recorded as a reduction of revenues, in
relation to the re-negotiation of payment terms, pass through of Midwest
premium amounts and other pricing mechanisms in a contract with one of Wise's
customers. We entered into the re-negotiation of these terms in order to align
the terms of this contract, acquired during the acquisition of Wise, with
Constellium's normal business terms.
(E) The contractual price adjustment relating to the acquisition of Wise
Metals Intermediate Holdings was finalized in the third quarter of 2016. We
received a cash payment of ?20 million and recorded a ?19 million gain net of
costs.
(F) For the nine months ended September 30, 2017, other includes ?3 million of
legal fees and lump-sum payments in connection with the renegotiation of a new
5-year collective bargaining agreement offset by accruals reversals of unused
provision related to one-time loss contingencies.
Reconciliation of net cash flows from operating activities to Free Cash Flow (a
non-GAAP measure)
Three months Three months Nine months Nine months
ended ended ended ended
September September September September
30, 2017 30, 2016 30, 2017 30, 2016
--------------- --------------- --------------- -------------
Net cash flows
from operating
activities 76 40 157 88
Purchases of
property, plant
and equipment (55 ) (74 ) (175 ) (230 )
Equity
contributions and
loans to joint-
ventures - (4 ) (24 ) (27 )
Other investing
activities 14 3 23 9
--------------- --------------- --------------- -------------
Free Cash Flow 35 (35 ) (19 ) (160 )
--------------- --------------- --------------- -------------
Reconciliation of borrowings to Net debt (a non-GAAP measure)
At September At December
(in millions of Euros) 30, 2017 31, 2016
------------------------------------- --------------------- -------------------
Borrowings 2,257 2,468
Fair value of cross currency basis
swaps, net of margin calls 31 (77 )
Cash and cash equivalents (300 ) (347 )
Cash pledged for issuance of
guarantees (1 ) (9 )
--------------------- -------------------
Net debt 1,987 2,035
--------------------- -------------------
Non-GAAP measures
In addition to the results reported in accordance with International Financial
Reporting Standards ("IFRS"), this press release includes information regarding
certain financial measures which are not prepared in accordance with IFRS ("non-
GAAP measures"). The non-GAAP financial measures used in this press release are:
Adjusted EBITDA, Adjusted EBITDA per metric ton, Free cash flow and Net debt.
Reconciliations to the most directly comparable IFRS financial measures are
presented in the schedules to this press release. We believe these non-GAAP
measures are important supplemental measures of our operating and financial
performance. By providing these measures, together with the reconciliations, we
believe we are enhancing investors' understanding of our business, our results
of operations and our financial position, as well as assisting investors in
evaluating how well we are executing our strategic initiatives. However, these
non-GAAP financial measures supplement our IFRS disclosures and should not be
considered an alternative to the IFRS measures and may not be comparable to
similarly titled measures of other companies.
In considering the financial performance of the business, management and our
chief operational decision maker, as defined by IFRS, analyze the primary
financial performance measure of Adjusted EBITDA in all of our business
segments. The most directly comparable IFRS measure to Adjusted EBITDA is our
net income or loss for the period. We believe Adjusted EBITDA, as defined below,
is useful to investors and is used by our management for measuring profitability
because it excludes the impact of certain non-cash charges, such as
depreciation, amortization, impairment and unrealized gains and losses on
derivatives as well as items that do not impact the day-to-day operations and
that management in many cases does not directly control or influence. Therefore,
such adjustments eliminate items which have less bearing on our core operating
performance.
Adjusted EBITDA measures are frequently used by securities analysts, investors
and other interested parties in their evaluation of Constellium and in
comparison to other companies, many of which present an Adjusted EBITDA-related
performance measure when reporting their results.
Adjusted EBITDA is defined as income / (loss) from continuing operations before
income taxes, results from joint ventures, net finance costs, other expenses and
depreciation and amortization as adjusted to exclude restructuring costs,
impairment charges, unrealized gains or losses on derivatives and on foreign
exchange differences on transactions which do not qualify for hedge accounting,
metal price lag, share based compensation expense, effects of certain purchase
accounting adjustments, start-up and development costs or acquisition,
integration and separation costs, certain incremental costs and other
exceptional, unusual or generally non-recurring items.
Adjusted EBITDA is the measure of performance used by management in evaluating
our operating performance, in preparing internal forecasts and budgets necessary
for managing our business and, specifically in relation to the exclusion of the
effect of favorable or unfavorable metal price lag, this measure allows
management and the investor to assess operating results and trends without the
impact of our accounting for inventories. We use the weighted average cost
method in accordance with IFRS which leads to the purchase price paid for metal
impacting our cost of goods sold and therefore profitability in the period
subsequent to when the related sales price impacts our revenues. Management
believes this measure also provides additional information used by our lending
facilities providers with respect to the ongoing performance of our underlying
business activities. Historically, we have used Adjusted EBITDA in calculating
our compliance with financial covenants under certain of our loan facilities.
Adjusted EBITDA is not a presentation made in accordance with IFRS, is not a
measure of financial condition, liquidity or profitability and should not be
considered as an alternative to profit or loss for the period, revenues or
operating cash flows determined in accordance with IFRS.
Free Cash Flow is net cash flow from operating activities less capital
expenditure, equity contributions and loans to joint ventures and other
investing activities. Net debt is defined as borrowings plus or minus the fair
value of cross currency basis swaps net of margin calls less cash and cash
equivalents and cash pledged for the issuance of guarantees.
Management believes that Free Cash Flow is a useful measure of the net cash flow
generated or used by the business as it takes into account both the cash
generated or consumed by operating activities, including working capital, and
the capital expenditure requirements of the business. Management believes that
Net debt is a useful measure of indebtedness because it takes into account the
cash and cash equivalent balances held by the Company as well as the total
external debt of the Company.
Net debt and Free Cash Flow are not presentations made in accordance with IFRS,
and should not be considered as an alternative to borrowings or operating cash
flows determined in accordance with IFRS.
Ryan Wentling - Investor Relations
Phone: +1 (212) 675-5450
Investor-relations(at)constellium.com
Delphine Dahan-Kocher - Communications
Phone: +1 (212) 858 9963
delphine.dahan-kocher(at)constellium.com
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Constellium Paris via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 26.10.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 565372
Anzahl Zeichen: 61543
contact information:
Town:
Paris
Kategorie:
Business News
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Die Pressemitteilung mit dem Titel:
"Constellium Reports Third Quarter 2017 Financial Results"
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Constellium Paris (Nachricht senden)
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