We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
Alcoa Corporation | NYSE:AA | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
1.06 | 2.95% | 36.9999 | 37.39 | 36.23 | 36.51 | 5,653,338 | 00:47:30 |
Alcoa Corporation (NYSE: AA) today reported second quarter 2022 financial results that included an 11 percent sequential increase in revenue and strong cash flow that enabled stock buybacks and the payment of cash dividends.
Second Quarter Highlights
“We had a strong first half of 2022 with nearly $2 billion in Adjusted EBITDA and cash flows that have enabled more buybacks under our existing stock repurchase program as well as continued quarterly dividend payments,” said Alcoa President and CEO Roy Harvey. “We have returned more than $380 million so far this year to our investors, and today we announced an additional $500 million authorization for future stock repurchases.
“As we progress into the remainder of this volatile year, we remain focused on our strategic priorities and our vision to reinvent the aluminum industry for a sustainable future,” Harvey said.
Financial Results
M, except per share amounts
2Q22
1Q22
2Q21
Revenue
$3,644
$3,293
$2,833
Net income attributable to Alcoa Corporation
$549
$469
$309
Earnings per share attributable to Alcoa Corporation
$2.95
$2.49
$1.63
Adjusted net income
$496
$577
$281
Adjusted earnings per share
$2.67
$3.06
$1.49
Adjusted EBITDA excluding special items
$913
$1,072
$618
Second Quarter 2022 Results
Strategic actions:
2022 Outlook
The Company expects total Aluminum segment shipments to remain unchanged from the prior forecast, ranging between 2.5 and 2.6 million metric tons in 2022.
In Alumina, the Company has decreased its 2022 projection for shipments to range between 13.6 and 13.8 million metric tons, a reduction of 0.6 million metric tons from the prior forecast primarily due to the lower shipments in the first half of 2022.
In Bauxite, the Company has decreased its 2022 projection for annual bauxite shipments to range between 44.0 and 45.0 million dry metric tons, a change of 2 million dry metric tons from the prior projection due to continuing disruptions in the Atlantic bauxite market and lower demand from refineries in the first half of 2022.
For the third quarter of 2022, Alcoa expects higher sequential profitability in the Bauxite segment with increased shipments, as refinery demand improves in the third quarter. In Alumina and Aluminum, shipments are expected to increase but will not fully offset higher costs for energy and raw materials.
The Company anticipates an approximately $20 million negative impact to net income in the third quarter as a result of the Warrick line curtailment. The decrease in production volume at the San Ciprián refinery reduces the impact of the continuing rise in natural gas prices but is not expected to improve net income significantly on a sequential basis.
Based on current alumina and aluminum market conditions, the Company expects third quarter tax expense to approximate $100 million to $110 million, which may vary with market conditions and jurisdictional profitability.
Conference Call
Alcoa will hold its quarterly conference call at 5:00 p.m. Eastern Daylight Time (EDT) on Wednesday, July 20, 2022, to present second quarter 2022 financial results and discuss the business, developments, and market conditions.
The call will be webcast via the Company’s homepage on www.alcoa.com. Presentation materials for the call will be available for viewing on the same website at approximately 4:15 p.m. EDT on July 20, 2022. Call information and related details are available under the “Investors” section of www.alcoa.com.
About Alcoa Corporation
Alcoa (NYSE: AA) is a global industry leader in bauxite, alumina and aluminum products with a vision to reinvent the aluminum industry for a sustainable future. Our purpose is to turn raw potential into real progress, underpinned by Alcoa Values that encompass integrity, operating excellence, care for people and courageous leadership. Since developing the process that made aluminum an affordable and vital part of modern life, our talented Alcoans have developed breakthrough innovations and best practices that have led to improved safety, sustainability, efficiency, and stronger communities wherever we operate.
Discover more by visiting www.alcoa.com. Follow us on our social media channels: Facebook, Instagram, Twitter, YouTube and LinkedIn.
The Company does not incorporate the information contained on, or accessible through, such websites into this press release.
Dissemination of Company Information
Alcoa intends to make future announcements regarding company developments and financial performance through its website, www.alcoa.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls and webcasts.
Forward-Looking Statements
This news release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as “aims,” “ambition,” “anticipates,” “believes,” “could,” “develop,” “endeavors,” “estimates,” “expects,” “forecasts,” “goal,” “intends,” “may,” “outlook,” “potential,” “plans,” “projects,” “reach,” “seeks,” “sees,” “should,” “strive,” “targets,” “will,” “working,” “would,” or other words of similar meaning. All statements by Alcoa Corporation that reflect expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, forecasts concerning global demand growth for bauxite, alumina, and aluminum, and supply/demand balances; statements, projections or forecasts of future or targeted financial results, or operating or sustainability performance (including our ability to execute on strategies related to environmental, social and governance matters); statements about strategies, outlook, and business and financial prospects; and statements about capital allocation and return of capital. These statements reflect beliefs and assumptions that are based on Alcoa Corporation’s perception of historical trends, current conditions, and expected future developments, as well as other factors that management believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties, and changes in circumstances that are difficult to predict. Although Alcoa Corporation believes that the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties. Such risks and uncertainties include, but are not limited to: (a) current and potential future impacts to the global economy and our industry, business and financial condition caused by various worldwide or macroeconomic events, such as the COVID-19 pandemic and the ongoing conflict between Russia and Ukraine, and related regulatory developments; (b) material adverse changes in aluminum industry conditions, including global supply and demand conditions and fluctuations in London Metal Exchange-based prices and premiums, as applicable, for primary aluminum and other products, and fluctuations in indexed-based and spot prices for alumina; (c) changes in global economic and financial market conditions generally, such as inflation and interest rate increases, and which may also affect Alcoa Corporation’s ability to obtain credit or financing upon acceptable terms or at all; (d) unfavorable changes in the markets served by Alcoa Corporation; (e) the impact of changes in foreign currency exchange and tax rates on costs and results; (f) increases in energy or raw material costs, or uncertainty of or disruption to energy or raw materials supply, and to the supply chain including logistics; (g) the inability to execute on strategies related to or achieve improvement in profitability and margins, cost savings, cash generation, revenue growth, fiscal discipline, environmental- and social-related goals and targets (including due to delays in scientific and technological developments), or strengthening of competitiveness and operations anticipated from portfolio actions, operational and productivity improvements, technology advancements, and other initiatives; (h) the inability to realize expected benefits, in each case as planned and by targeted completion dates, from acquisitions, divestitures, restructuring activities, facility closures, curtailments, restarts, expansions, or joint ventures; (i) political, economic, trade, legal, public health and safety, and regulatory risks in the countries in which Alcoa Corporation operates or sells products; (j) labor disputes and/or work stoppages and strikes; (k) the outcome of contingencies, including legal and tax proceedings, government or regulatory investigations, and environmental remediation; (l) the impact of cyberattacks and potential information technology or data security breaches; (m) risks associated with long-term debt obligations; (n) the timing and amount of future cash dividends and share repurchases; (o) declines in the discount rates used to measure pension and other postretirement benefit liabilities or lower-than-expected investment returns on pension assets, or unfavorable changes in laws or regulations that govern pension plan funding; and, (p) the other risk factors discussed in Part I Item 1A of Alcoa Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, the Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and other reports filed by Alcoa Corporation with the U.S. Securities and Exchange Commission. Alcoa Corporation disclaims any obligation to update publicly any forward-looking statements, whether in response to new information, future events or otherwise, except as required by applicable law. Market projections are subject to the risks described above and other risks in the market.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Alcoa Corporation’s consolidated financial information but is not presented in Alcoa Corporation’s financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered “non-GAAP financial measures” under SEC regulations. Alcoa Corporation believes that the presentation of non-GAAP financial measures is useful to investors because such measures provide both additional information about the operating performance of Alcoa Corporation and insight on the ability of Alcoa Corporation to meet its financial obligations by adjusting the most directly comparable GAAP financial measure for the impact of, among others, “special items” as defined by the Company, non-cash items in nature, and/or nonoperating expense or income items. The presentation of non-GAAP financial measures is not intended to be a substitute for, and should not be considered in isolation from, the financial measures reported in accordance with GAAP. Reconciliations to the most directly comparable GAAP financial measures and management’s rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Alcoa Corporation and subsidiariesStatement of Consolidated Operations (unaudited)
(dollars in millions, except per-share amounts)
Quarter Ended
June 30,
2022
March 31,
2022
June 30,
2021
Sales
$
3,644
$
3,293
$
2,833
Cost of goods sold (exclusive of expenses below)
2,767
2,181
2,156
Selling, general administrative, and other expenses
52
44
54
Research and development expenses
7
9
6
Provision for depreciation, depletion, and amortization
161
160
161
Restructuring and other charges, net
(75
)
125
33
Interest expense
30
25
67
Other income, net
(206
)
(14
)
(105
)
Total costs and expenses
2,736
2,530
2,372
Income before income taxes
908
763
461
Provision for income taxes
234
210
111
Net income
674
553
350
Less: Net income attributable to noncontrolling interest
125
84
41
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION
$
549
$
469
$
309
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS:
Basic:
Net income
$
3.01
$
2.54
$
1.66
Average number of shares
182,499,574
184,550,123
186,705,311
Diluted:
Net income
$
2.95
$
2.49
$
1.63
Average number of shares
186,068,663
188,536,773
190,195,453
Alcoa Corporation and subsidiaries
Statement of Consolidated Operations (unaudited)
(dollars in millions, except per-share amounts)
Six Months Ended
June 30,
2022
June 30,
2021
Sales
$
6,937
$
5,703
Cost of goods sold (exclusive of expenses below)
4,948
4,448
Selling, general administrative, and other expenses
96
106
Research and development expenses
16
13
Provision for depreciation, depletion, and amortization
321
343
Restructuring and other charges, net
50
40
Interest expense
55
109
Other income, net
(220
)
(129
)
Total costs and expenses
5,266
4,930
Income before income taxes
1,671
773
Provision for income taxes
444
204
Net income
1,227
569
Less: Net income attributable to noncontrolling interest
209
85
NET INCOME ATTRIBUTABLE TO ALCOA CORPORATION
$
1,018
$
484
EARNINGS PER SHARE ATTRIBUTABLE TO ALCOA CORPORATION COMMON SHAREHOLDERS:
Basic:
Net income
$
5.55
$
2.60
Average number of shares
183,489,221
186,473,781
Diluted:
Net income
$
5.44
$
2.56
Average number of shares
187,282,228
189,497,440
Common stock outstanding at the end of the period
179,921,896
186,855,060
Alcoa Corporation and subsidiaries
Consolidated Balance Sheet (unaudited)
(in millions)
June 30,
2022
December 31,
2021
ASSETS
Current assets:
Cash and cash equivalents
$
1,638
$
1,814
Receivables from customers
898
757
Other receivables
124
127
Inventories
2,556
1,956
Fair value of derivative instruments
224
14
Prepaid expenses and other current assets(1)
423
358
Total current assets
5,863
5,026
Properties, plants, and equipment
19,647
19,753
Less: accumulated depreciation, depletion, and amortization
13,190
13,130
Properties, plants, and equipment, net
6,457
6,623
Investments
1,238
1,199
Deferred income taxes
445
506
Fair value of derivative instruments
15
7
Other noncurrent assets(2)
1,691
1,664
Total assets
$
15,709
$
15,025
LIABILITIES
Current liabilities:
Accounts payable, trade
$
1,752
$
1,674
Accrued compensation and retirement costs
341
383
Taxes, including income taxes
343
374
Fair value of derivative instruments
232
274
Other current liabilities
567
517
Long-term debt due within one year
1
1
Total current liabilities
3,236
3,223
Long-term debt, less amount due within one year
1,725
1,726
Accrued pension benefits
369
417
Accrued other postretirement benefits
626
650
Asset retirement obligations
634
622
Environmental remediation
254
265
Fair value of derivative instruments
867
1,048
Noncurrent income taxes
204
191
Other noncurrent liabilities and deferred credits
502
599
Total liabilities
8,417
8,741
EQUITY
Alcoa Corporation shareholders’ equity:
Common stock
2
2
Additional capital
9,313
9,577
Retained earnings (deficit)
606
(315
)
Accumulated other comprehensive loss
(4,255
)
(4,592
)
Total Alcoa Corporation shareholders’ equity
5,666
4,672
Noncontrolling interest
1,626
1,612
Total equity
7,292
6,284
Total liabilities and equity
$
15,709
$
15,025
(1)
This line item includes $42 and $4 of restricted cash at June 30, 2022 and December 31, 2021, respectively.
(2)
This line item includes $68 and $106 of noncurrent restricted cash at June 30, 2022 and December 31, 2021, respectively.
Alcoa Corporation and subsidiariesStatement of Consolidated Cash Flows (unaudited)
(in millions)
Six Months Ended June 30,
2022
2021
CASH FROM OPERATIONS
Net income
$
1,227
$
569
Adjustments to reconcile net income to cash from operations:
Depreciation, depletion, and amortization
321
343
Deferred income taxes
93
48
Equity earnings, net of dividends
(61
)
(46
)
Restructuring and other charges, net
50
40
Net loss (gain) from investing activities – asset sales
5
(124
)
Net periodic pension benefit cost
28
24
Stock-based compensation
20
18
Provision for bad debt expense
—
1
Premium paid on early redemption of debt
—
25
Gain on mark-to-market derivative financial contracts
(123
)
(5
)
Other
28
33
Changes in assets and liabilities, excluding effects of divestitures and foreign currency translation adjustments:
Increase in receivables
(119
)
(270
)
Increase in inventories
(657
)
(184
)
Decrease in prepaid expenses and other current assets
15
58
Increase in accounts payable, trade
98
32
Decrease in accrued expenses
(103
)
(20
)
(Decrease) Increase in taxes, including income taxes
(79
)
40
Pension contributions
(9
)
(570
)
Increase in noncurrent assets
(105
)
(34
)
Decrease in noncurrent liabilities
(59
)
(58
)
CASH PROVIDED FROM (USED FOR) OPERATIONS
570
(80
)
FINANCING ACTIVITIES
Additions to debt (original maturities greater than three months)
—
495
Payments on debt (original maturities greater than three months)
—
(776
)
Proceeds from the exercise of employee stock options
22
14
Repurchase of common stock
(350
)
—
Dividends paid on Alcoa common stock
(37
)
—
Payments related to tax withholding on stock-based compensation awards
(19
)
(1
)
Financial contributions for the divestiture of businesses
(9
)
(13
)
Contributions from noncontrolling interest
83
—
Distributions to noncontrolling interest
(245
)
(137
)
Other
(3
)
(3
)
CASH USED FOR FINANCING ACTIVITIES
(558
)
(421
)
INVESTING ACTIVITIES
Capital expenditures
(181
)
(154
)
Proceeds from the sale of assets
4
705
Additions to investments
(21
)
(3
)
Sale of investments
10
—
Other
2
—
CASH (USED FOR) PROVIDED FROM INVESTING ACTIVITIES
(186
)
548
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
(2
)
(2
)
Net change in cash and cash equivalents and restricted cash
(176
)
45
Cash and cash equivalents and restricted cash at beginning of year
1,924
1,610
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
$
1,748
$
1,655
Alcoa Corporation and subsidiaries
Segment Information (unaudited)
(dollars in millions, except realized prices; dry metric tons in millions (mdmt); metric tons in thousands (kmt))
1Q21
2Q21
3Q21
4Q21
2021
1Q22
2Q22
Bauxite:
Production(1) (mdmt)
11.9
12.2
11.7
11.8
47.6
11.0
10.2
Third-party shipments (mdmt)
1.5
1.1
1.5
1.6
5.7
0.8
0.6
Intersegment shipments (mdmt)
10.5
10.8
10.5
10.6
42.4
10.1
10.0
Third-party sales
$
58
$
39
$
56
$
83
$
236
$
43
$
34
Intersegment sales
$
185
$
179
$
172
$
175
$
711
$
170
$
165
Segment Adjusted EBITDA(2)
$
59
$
41
$
23
$
49
$
172
$
38
$
5
Depreciation, depletion, and amortization
$
57
$
32
$
30
$
34
$
153
$
35
$
35
Alumina:
Production (kmt)
3,327
3,388
3,253
3,291
13,259
3,209
3,226
Third-party shipments (kmt)
2,472
2,437
2,426
2,294
9,629
2,277
2,438
Intersegment shipments (kmt)
1,101
1,054
1,011
1,121
4,287
940
984
Average realized third-party price per metric ton of alumina
$
308
$
282
$
312
$
407
$
326
$
375
$
442
Third-party sales
$
760
$
688
$
756
$
935
$
3,139
$
855
$
1,077
Intersegment sales
$
364
$
343
$
349
$
530
$
1,586
$
418
$
489
Segment Adjusted EBITDA(2)
$
227
$
124
$
148
$
503
$
1,002
$
262
$
343
Depreciation and amortization
$
46
$
50
$
47
$
55
$
198
$
50
$
49
Equity (loss) income
$
(5
)
$
(1
)
$
(1
)
$
11
$
4
$
1
$
(5
)
Aluminum:
Primary aluminum production (kmt)
548
546
545
554
2,193
498
499
Third-party aluminum shipments(3) (kmt)
831
767
722
687
3,007
634
674
Average realized third-party price per metric ton of primary aluminum
$
2,308
$
2,753
$
3,124
$
3,382
$
2,879
$
3,861
$
3,864
Third-party sales
$
2,047
$
2,102
$
2,295
$
2,322
$
8,766
$
2,388
$
2,539
Intersegment sales
$
2
$
3
$
8
$
5
$
18
$
7
$
8
Segment Adjusted EBITDA(2)
$
283
$
460
$
613
$
523
$
1,879
$
713
$
596
Depreciation and amortization
$
73
$
73
$
72
$
71
$
289
$
69
$
71
Equity income
$
13
$
28
$
38
$
37
$
116
$
39
$
40
Reconciliation of total segment Adjusted EBITDA to consolidated net income (loss) attributable to Alcoa Corporation:
Total Segment Adjusted EBITDA(2)
$
569
$
625
$
784
$
1,075
$
3,053
$
1,013
$
944
Unallocated amounts:
Transformation(4)
(11
)
(13
)
(10
)
(10
)
(44
)
(14
)
(11
)
Intersegment eliminations
(7
)
35
(8
)
(121
)
(101
)
102
20
Corporate expenses(5)
(26
)
(28
)
(30
)
(45
)
(129
)
(29
)
(35
)
Provision for depreciation, depletion, and amortization
(182
)
(161
)
(156
)
(165
)
(664
)
(160
)
(161
)
Restructuring and other charges, net
(7
)
(33
)
(33
)
(1,055
)
(1,128
)
(125
)
75
Interest expense
(42
)
(67
)
(58
)
(28
)
(195
)
(25
)
(30
)
Other income, net
24
105
18
298
445
14
206
Other(6)
(6
)
(2
)
(10
)
(20
)
(38
)
(13
)
(100
)
Consolidated income (loss) before income taxes
312
461
497
(71
)
1,199
763
908
Provision for income taxes
(93
)
(111
)
(127
)
(298
)
(629
)
(210
)
(234
)
Net income attributable to noncontrolling interest
(44
)
(41
)
(33
)
(23
)
(141
)
(84
)
(125
)
Consolidated net income (loss) attributable to Alcoa Corporation
$
175
$
309
$
337
$
(392
)
$
429
$
469
$
549
The difference between segment totals and consolidated amounts is in Corporate.
(1)
The production amounts can vary from total shipments due primarily to differences between the equity allocation of production and off-take agreements with the respective equity investment.
(2)
Alcoa Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.
(3)
Until the sale of the Warrick Rolling Mill on March 31, 2021, the Aluminum segment’s third-party aluminum shipments were composed of both primary aluminum and flat-rolled aluminum. Beginning April 1, 2021, the segment’s third-party aluminum shipments include only primary aluminum.
(4)
Transformation includes, among other items, the Adjusted EBITDA of previously closed operations.
(5)
Corporate expenses are composed of general administrative and other expenses of operating the corporate headquarters and other global administrative facilities, as well as research and development expenses of the corporate technical center.
(6)
Other includes certain items that impact Alcoa Corporation’s Statement of Consolidated Operations that are not included in the Adjusted EBITDA of the reportable segments.
Alcoa Corporation and subsidiariesCalculation of Financial Measures (unaudited)
(in millions, except per-share amounts)
Adjusted Income
Income
Diluted EPS
Quarter ended
Quarter ended
June 30,
2022
March 31,
2022
June 30,
2021
June 30,
2022
March 31,
2022
June 30,
2021
Net income attributable to Alcoa Corporation
$
549
$
469
$
309
$
2.95
$
2.49
$
1.63
Special items:
Restructuring and other charges, net
(75
)
125
33
Other special items(1)
(76
)
(2
)
(65
)
Discrete tax items (2)
—
2
—
Tax impact on special items(3)
52
(8
)
3
Noncontrolling interest impact(3)
46
(9
)
1
Subtotal
(53
)
108
(28
)
Net income attributable to Alcoa Corporation – as adjusted
$
496
$
577
$
281
$
2.67
$
3.06
$
1.49
Net income attributable to Alcoa Corporation – as adjusted is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews the operating results of Alcoa Corporation excluding the impacts of restructuring and other charges, various tax items, and other special items (collectively, “special items”). There can be no assurances that additional special items will not occur in future periods. To compensate for this limitation, management believes it is appropriate to consider both Net income attributable to Alcoa Corporation determined under GAAP as well as Net income attributable to Alcoa Corporation – as adjusted.
(1)
Other special items include the following:
(2)
Discrete tax items are generally unusual or infrequently occurring items, changes in law, items associated with uncertain tax positions, or the effect of measurement-period adjustments and include the following:
(3)
The tax impact on special items is based on the applicable statutory rates in the jurisdictions where the special items occurred. The noncontrolling interest impact on special items represents Alcoa’s partner’s share of certain special items.
Alcoa Corporation and subsidiariesCalculation of Financial Measures (unaudited), continued
(in millions)
Adjusted EBITDA
Quarter ended
June 30,
2022
March 31,
2022
June 30,
2021
Net income attributable to Alcoa Corporation
$
549
$
469
$
309
Add:
Net income attributable to noncontrolling interest
125
84
41
Provision for income taxes
234
210
111
Other income, net
(206
)
(14
)
(105
)
Interest expense
30
25
67
Restructuring and other charges, net
(75
)
125
33
Provision for depreciation, depletion, and amortization
161
160
161
Adjusted EBITDA
818
1,059
617
Special items(1)
95
13
1
Adjusted EBITDA, excluding special items
$
913
$
1,072
$
618
Alcoa’s Corporation’s definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net margin plus an add-back for depreciation, depletion, and amortization. Net margin is equivalent to Sales minus the following items: Cost of goods sold; Selling, general administrative, and other expenses; Research and development expenses; and Provision for depreciation, depletion, and amortization. Adjusted EBITDA is a non-GAAP financial measure. Management believes this measure is meaningful to investors because Adjusted EBITDA provides additional information with respect to Alcoa Corporation’s operating performance and the Company’s ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies.
(1)
Special items include the following (see reconciliation of Adjusted Income above for additional information):
Calculation of Financial Measures (unaudited), continued
(in millions)
Free Cash Flow
Quarter ended
June 30,
2022
March 31,
2022
June 30,
2021
Cash provided from (used for) operations(1)
$
536
$
34
$
(86
)
Capital expenditures
(107
)
(74
)
(79
)
Free cash flow
$
429
$
(40
)
$
(165
)
Free Cash Flow is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures, which are both necessary to maintain and expand Alcoa Corporation’s asset base and expected to generate future cash flows from operations. It is important to note that Free Cash Flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
(1)
Cash provided from (used for) operations for the quarter ended June 30, 2021 includes a $500 cash outflow for unscheduled contributions to certain U.S. defined benefit pension plans. The $500 was funded with the net proceeds of 4.125% senior notes due 2029, together with cash on hand.
Net Debt
June 30,
2022
December 31,
2021
Short-term borrowings
$
75
$
75
Long-term debt due within one year
1
1
Long-term debt, less amount due within one year
1,725
1,726
Total debt
1,801
1,802
Less: Cash and cash equivalents
1,638
1,814
Net debt (cash)
$
163
$
(12
)
Net debt is a non-GAAP financial measure. Management believes this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash.
Alcoa Corporation and subsidiariesCalculation of Financial Measures (unaudited), continued
(in millions) Adjusted Net Debt and Proportional Adjusted Net Debt
June 30,
2022
December 31,
2021
Consolidated
NCI
Alcoa Proportional
Consolidated
NCI
Alcoa Proportional
Short-term borrowings
$
75
$
30
$
45
$
75
$
30
$
45
Long-term debt due within one year
1
—
1
1
—
1
Long-term debt, less amount due within one year
1,725
—
1,725
1,726
—
1,726
Total debt
1,801
30
1,771
1,802
30
1,772
Less: Cash and cash equivalents
1,638
166
1,472
1,814
177
1,637
Net debt (net cash)
163
(136
)
299
(12
)
(147
)
135
Plus: Net pension / OPEB liability
893
16
877
973
15
958
Adjusted net debt (net cash)
$
1,056
$
(120
)
$
1,176
$
961
$
(132
)
$
1,093
Net debt is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt. When cash exceeds total debt, the measure is expressed as net cash.
Adjusted net debt and proportional adjusted net debt are also non-GAAP financial measures. Management believes that these additional measures are meaningful to investors because management also assesses Alcoa Corporation’s leverage position after considering available cash that could be used to repay outstanding debt and net pension/OPEB liability, net of the portion of those items attributable to noncontrolling interest (NCI).
Days Working Capital
Quarter ended
June 30,
2022
March 31,
2022
June 30,
2021
Receivables from customers
$
898
$
952
$
644
Add: Inventories
2,556
2,495
1,547
Less: Accounts payable, trade
(1,752
)
(1,645
)
(1,392
)
DWC working capital
$
1,702
$
1,802
$
799
Sales
$
3,644
$
3,293
$
2,833
Number of days in the quarter
91
90
91
Days working capital(1)
43
49
26
Days working capital is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management uses its working capital position to assess Alcoa Corporation’s efficiency in liquidity management.
(1)
Days working capital is calculated as DWC working capital divided by the quotient of Sales and number of days in the quarter.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220715005300/en/
Investor Contact: James Dwyer +1 412 992 5450 James.Dwyer@alcoa.com Media Contact: Jim Beck +1 412 315 2909 Jim.Beck@alcoa.com
1 Year Alcoa Chart |
1 Month Alcoa Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions