AMSTERDAM, April 27, 2017 /PRNewswire/ -- Constellium
N.V. (NYSE and Euronext Paris: CSTM) today reported results for
first quarter ended March 31,
2017.
- Shipments of 375 thousand metric tons; Automotive shipments
up 20% compared to Q1 2016
- Revenue of €1.3 billion, up 15% compared to Q1 2016 on
higher aluminum prices and increased shipments
- Net income of €13 million compared to a net loss of €8
million in Q1 2016
- Adjusted EBITDA of €93 million
- Refinanced the Wise Senior Secured Notes with Constellium
Senior Notes
- Launched "Project 2019" – a cash improvement initiative
focused on reducing costs, working capital, and capital
expenditures
Jean-Marc Germain, Constellium's
Chief Executive Officer said, "I am pleased with our first quarter
results. AS&I continued its strong momentum and reported record
Adjusted EBITDA, while A&T and P&ARP overcame headwinds to
deliver solid results. We remain optimistic on the prospects for
2017 and confident in our ability to deliver high single digit
Adjusted EBITDA growth this year."
Mr. Germain continued, "We are focused on executing our strategy
and increasing shareholder value. Concluding our peak capital
spending needs in 2016 and addressing our capital structure through
the February refinancing represented two important steps on our
journey. Launching Project 2019 earlier this month was another
critical milestone. We continue to expect Adjusted EBITDA growth in
the high single digits annually, leading to over €500 million of
Adjusted EBITDA in 2020."
Group Summary
|
Q1
2017
|
Q1
2016
|
Var.
|
Shipments (k
metric tons)
|
375
|
362
|
4%
|
Revenue (€
millions)
|
1,328
|
1,150
|
15%
|
Net income /
(loss) (€ millions)
|
13
|
(8)
|
n.m.
|
Adjusted EBITDA (€
millions)
|
93
|
92
|
1%
|
Adjusted EBITDA
per metric ton (€)
|
249
|
255
|
(2)%
|
Adjusted EBITDA per metric ton and percentage changes are
calculated on unrounded underlying figures. n.m.: not
meaningful
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.
Shipments of 375k metric tons increased 4% compared to the first
quarter of 2016 on higher shipments of packaging and automotive
products. Revenue of €1.3 billion increased 15% compared to the
first quarter last year due to higher metal prices and increased
shipments. Net income of €13 million improved from a net loss of €8
million in the first quarter of 2016. Adjusted EBITDA was €93
million in the first quarter of 2017, an increase of 1% from the
first quarter of last year. Adjusted EBITDA per metric ton of €249
declined 2% compared to the first quarter of 2016.
Results by
Segment
Packaging & Automotive Rolled Products
(P&ARP)
|
Q1
2017
|
Q1
2016
|
Var.
|
Shipments (k
metric tons)
|
254
|
244
|
4%
|
Revenue (€
millions)
|
705
|
588
|
20%
|
Adjusted EBITDA (€
millions)
|
41
|
42
|
(4)%
|
Adjusted EBITDA
per metric ton (€)
|
160
|
172
|
(7)%
|
Adjusted EBITDA per metric ton and percentage changes are
calculated on unrounded underlying figures.
First quarter Adjusted EBITDA declined slightly as compared with
the first quarter of 2016 primarily due to higher maintenance
expense and other costs related to upgrades required for our
automotive readiness program at Muscle Shoals. Adjusted EBITDA
benefitted from higher shipments and improved mix in the
quarter.
Shipments of 254k metric tons were 4% higher than the first
quarter of 2016, reflecting increases in both Packaging and
Automotive rolled products. Automotive rolled product shipments
increased 28% to 34k metric tons. Revenue of €705 million increased
20% compared to the first quarter of last year as a result of
higher metal prices and increased shipments. Adjusted EBITDA of €41
million decreased 4% compared to the first quarter of last year.
Adjusted EBITDA per metric ton of €160 decreased 7% compared to the
same period in 2016.
Aerospace & Transportation (A&T)
|
Q1
2017
|
Q1
2016
|
Var.
|
Shipments (k
metric tons)
|
61
|
63
|
(3)%
|
Revenue (€
millions)
|
343
|
332
|
3%
|
Adjusted EBITDA (€
millions)
|
28
|
30
|
(4)%
|
Adjusted EBITDA
per metric ton (€)
|
468
|
470
|
0%
|
Adjusted EBITDA per metric ton and percentage changes are
calculated on unrounded underlying figures.
First quarter Adjusted EBITDA declined as compared with the
first quarter of 2016 primarily due to lower aerospace shipments as
a result of excess inventory in the aerospace supply chain and
effects related to the transition to new customer contracts. These
factors were partially offset by improved aerospace mix and solid
cost control.
Shipments of 61k metric tons decreased 3% compared to the first
quarter of 2016. Revenue of €343 million increased by 3% compared
to the first quarter of last year as a result of higher metal
prices, partially offset by lower shipments. Adjusted EBITDA of €28
million decreased by 4% compared to the first quarter of last year.
Adjusted EBITDA per metric ton of €468 was in line with the same
period in 2016.
Automotive Structures & Industry (AS&I)
|
Q1
2017
|
Q1
2016
|
Var.
|
Shipments (k
metric tons)
|
60
|
57
|
7%
|
Revenue (€
millions)
|
286
|
261
|
10%
|
Adjusted EBITDA (€
millions)
|
31
|
27
|
13%
|
Adjusted EBITDA
per metric ton (€)
|
514
|
486
|
6%
|
Adjusted EBITDA per metric ton and percentage changes are
calculated on unrounded underlying figures.
First quarter Adjusted EBITDA reached a new record level
primarily due to higher shipments of both Automotive and Other
extruded products on strong market demand and solid cost
performance.
Shipments of 60k metric tons increased 7% compared to the first
quarter of 2016. Revenue of €286 million increased 10% compared to
the first quarter of last year as a result of higher metal prices
and increased shipments. Adjusted EBITDA of €31 million grew 13%
compared to the first quarter of last year. Adjusted EBITDA per
metric ton of €514 increased 6% as compared to the same period in
2016.
Net income and Earnings per share
Net income of €13 million in the first quarter of 2017 improved
from a net loss of €8 million in the first quarter of 2016. The
change in net income is primarily attributable to a €22 million
gain upon pension and benefit plan amendments in the first quarter
of 2017 and one-time charges of €20 million in connection with the
re-negotiation of terms of a customer contract in the first quarter
of 2016, partially offset by increased finance costs in the first
quarter of 2017 as a result of the Wise Senior Secured Notes
refinancing. Basic and fully diluted earnings per share were €0.12
compared to a loss of €0.08 per share for the same period last
year. Fully diluted income and loss per share were based on a
weighted average number of ordinary shares of 106.6 million and
105.5 million for the quarters ended March
31, 2017 and 2016, respectively.
Liquidity and Cash flow
Liquidity at March 31, 2017 was
€515 million, comprised of €309 million of cash and cash
equivalents and €206 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.
Cash flows from operating activities in the first quarter of
2017 were €36 million as compared to cash flows used in operating
activities of €87 million in the first quarter of 2016. We reduced
factored receivables by €71 million in the quarter compared to a
€67 million reduction in the first quarter 2016.
Cash flows used in investing activities in the first quarter of
2017 of €69 million decreased compared to cash flows used of €99
million in the first quarter 2016 mainly due to the decrease in
capital expenditures to €60 million in the first quarter of 2017
compared to €78 million in the first quarter last year.
Cash flows used in financing activities in the first quarter of
2017 were €4 million as compared to cash flows from financing
activities of €337 million in the first quarter of 2016. In the
first quarter of 2017, we completed a $650
million offering of 6.625% Senior Unsecured Notes due 2025
and the redemption of the Wise $650
million 8.75% Senior Secured Notes due 2018. In the first
quarter of 2016, we issued $425
million of Senior Secured Notes due 2021.
Free cash flow in the first quarter of 2017 was an outflow of
€33 million as compared to an outflow of €182 million in the first
quarter of 2016.
Net debt was €2,077 million as compared to €2,035 million at
December 31, 2016.
Outlook
We 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.
We are 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, we
are 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, our net income in the
future.
Other recent developments
In April 2017, we amended the
Muscle Shoals ABL facility from $170 million
to $200 million, extended the maturity of the French
factoring facility to 2021, and entered into a new secured
Revolving Credit Facility on French inventory for €100 million.
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 and 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 March 31, 2017 are also
available on the company's website (www.constellium.com).
CONSOLIDATED
INCOME STATEMENT
|
|
|
|
|
(in millions of
Euros)
|
|
Three months
ended
March 31, 2017
(Unaudited)
|
|
Three months
ended
March 31, 2016
(Unaudited)
|
|
|
|
|
|
Revenue
|
|
1,328
|
|
1,150
|
Cost of
sales
|
|
(1,188)
|
|
(1,036)
|
Gross
profit
|
|
140
|
|
114
|
Selling and
administrative expenses
|
|
(65)
|
|
(61)
|
Research and
development expenses
|
|
(11)
|
|
(9)
|
Restructuring
costs
|
|
(2)
|
|
—
|
Other gains /
(losses) - net
|
|
38
|
|
9
|
Income from
operations
|
|
100
|
|
53
|
Finance costs -
net
|
|
(54)
|
|
(41)
|
Share of loss of
joint-ventures
|
|
(6)
|
|
(1)
|
Income before
income tax
|
|
40
|
|
11
|
Income tax
expense
|
|
(27)
|
|
(19)
|
Net Income /
(loss)
|
|
13
|
|
(8)
|
Net income /
(loss) attributable to:
|
|
|
|
|
Equity holders of
Constellium
|
|
13
|
|
(8)
|
Non-controlling
interests
|
|
—
|
|
—
|
Net income /
(loss)
|
|
13
|
|
(8)
|
EARNINGS PER SHARE
ATTRIBUTABLE TO THE EQUITY HOLDERS OF CONSTELLIUM
|
(in Euros per
share)
|
|
Three months
ended
March 31, 2017
(Unaudited)
|
|
Three months
ended
March 31, 2016
(Unaudited)
|
|
|
|
|
|
Basic
|
|
0.12
|
|
(0.08)
|
Diluted
|
|
0.12
|
|
(0.08)
|
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME / (LOSS)
|
|
|
(in millions of
Euros)
|
|
Three months
ended
March 31, 2017
(Unaudited)
|
|
Three months
ended
March 31, 2016
(Unaudited)
|
|
|
|
|
|
Net income /
(loss)
|
|
13
|
|
(8)
|
Other
comprehensive income / (loss)
|
|
|
|
|
Items not to be
reclassified subsequently to the consolidated income
statement
|
|
|
|
|
Remeasurement of
post-employment benefit obligations
|
|
9
|
|
(53)
|
Income tax on
remeasurement of post-employment benefit obligations
|
|
(2)
|
|
13
|
Items to be
reclassified subsequently to the consolidated income
statement
|
|
|
|
|
Cash flow
hedge
|
|
5
|
|
8
|
Income tax on cash
flow hedge
|
|
(2)
|
|
(3)
|
Currency translation
differences
|
|
(2)
|
|
1
|
Other
comprehensive income / (loss)
|
|
8
|
|
(34)
|
Total
comprehensive income / (loss)
|
|
21
|
|
(42)
|
Attributable
to:
|
|
|
|
|
Equity holders of
Constellium
|
|
21
|
|
(42)
|
Non-controlling
interests
|
|
—
|
|
—
|
Total
comprehensive income / (loss)
|
|
21
|
|
(42)
|
CONSOLIDATED
STATEMENT OF FINANCIAL POSITION
|
|
|
|
|
(in millions of
Euros)
|
|
At March
31, 2017
(Unaudited)
|
|
At December
31, 2016
(Unaudited)
|
|
|
|
|
|
Assets
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
309
|
|
347
|
Trade receivables and
other
|
|
469
|
|
355
|
Inventories
|
|
615
|
|
591
|
Other financial
assets
|
|
129
|
|
117
|
|
|
1,522
|
|
1,410
|
Non-current
assets
|
|
|
|
|
Property, plant and
equipment
|
|
1,489
|
|
1,477
|
Goodwill
|
|
451
|
|
457
|
Intangible
assets
|
|
77
|
|
79
|
Investments accounted
for under equity method
|
|
10
|
|
16
|
Deferred income tax
assets
|
|
231
|
|
252
|
Trade receivables and
other
|
|
52
|
|
47
|
Other financial
assets
|
|
30
|
|
49
|
|
|
2,340
|
|
2,377
|
Total
Assets
|
|
3,862
|
|
3,787
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Trade payables and
other
|
|
968
|
|
839
|
Borrowings
|
|
114
|
|
107
|
Other financial
liabilities
|
|
24
|
|
34
|
Income tax
payable
|
|
19
|
|
13
|
Provisions
|
|
42
|
|
42
|
|
|
1,167
|
|
1,035
|
Non-current
liabilities
|
|
|
|
|
Trade payables and
other
|
|
57
|
|
59
|
Borrowings
|
|
2,319
|
|
2,361
|
Other financial
liabilities
|
|
25
|
|
30
|
Pension and other
post-employment benefit obligations
|
|
701
|
|
735
|
Provisions
|
|
107
|
|
107
|
Deferred income tax
liabilities
|
|
33
|
|
30
|
|
|
3,242
|
|
3,322
|
Total
Liabilities
|
|
4,409
|
|
4,357
|
|
|
|
|
|
Equity
|
|
|
|
|
Share
capital
|
|
2
|
|
2
|
Share
premium
|
|
162
|
|
162
|
Retained deficit and
other reserves
|
|
(720)
|
|
(743)
|
Equity attributable
to equity holders of Constellium
|
|
(556)
|
|
(579)
|
Non-controlling
interests
|
|
9
|
|
9
|
Total
Equity
|
|
(547)
|
|
(570)
|
|
|
|
|
|
Total Equity and
Liabilities
|
|
3,862
|
|
3,787
|
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Euros)
|
|
Share
Capital
|
|
Share
Premium
|
|
Remeasure-
ment
|
|
Cash flow
hedges
|
|
Foreign
Currency
Translation
reserve
|
|
Other
reserves
|
|
Retained
losses
|
|
Total Equity
holders of
Constellium
|
|
Non-
controlling
interests
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1,
2017
|
|
2
|
|
162
|
|
(151)
|
|
(18)
|
|
12
|
|
17
|
|
(603)
|
|
(579)
|
|
9
|
|
(570)
|
Net income
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
13
|
|
13
|
|
-
|
|
13
|
Other comprehensive
income / (loss)
|
|
-
|
|
-
|
|
7
|
|
3
|
|
(2)
|
|
-
|
|
-
|
|
8
|
|
-
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income / (loss)
|
|
-
|
|
-
|
|
7
|
|
3
|
|
(2)
|
|
-
|
|
13
|
|
21
|
|
-
|
|
21
|
Transactions with
Equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
|
-
|
|
2
|
Transactions with
non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
At March 31,
2017
|
|
2
|
|
162
|
|
(144)
|
|
(15)
|
|
10
|
|
19
|
|
(590)
|
|
(556)
|
|
9
|
|
(547)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions of
Euros)
|
|
Share
Capital
|
|
Share
Premium
|
|
Remeasure-
ment
|
|
Cash flow
hedges
|
|
Foreign
Currency
Translation
reserve
|
|
Other
reserves
|
|
Retained
losses
|
|
Total Equity
holders of
Constellium
|
|
Non-
controlling
interests
|
|
Total
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At January 1,
2016
|
|
2
|
|
162
|
|
(133)
|
|
-
|
|
6
|
|
11
|
|
(599)
|
|
(551)
|
|
11
|
|
(540)
|
Net loss
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8)
|
|
(8)
|
|
-
|
|
(8)
|
Other comprehensive
(loss) / income
|
|
-
|
|
-
|
|
(40)
|
|
5
|
|
1
|
|
-
|
|
-
|
|
(34)
|
|
-
|
|
(34)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
comprehensive income / (loss)
|
|
-
|
|
-
|
|
(40)
|
|
5
|
|
1
|
|
-
|
|
(8)
|
|
(42)
|
|
-
|
|
(42)
|
Transactions with
Equity holders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
-
|
|
1
|
Transactions with
non-controlling interests
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
At March 31,
2016
|
|
2
|
|
162
|
|
(173)
|
|
5
|
|
7
|
|
12
|
|
(607)
|
|
(592)
|
|
11
|
|
(581)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
STATEMENT OF CASH FLOWS
|
|
|
|
(in millions of
Euros)
|
|
|
Three months
ended
March 31, 2017
(Unaudited)
|
|
Three months
ended
March 31, 2016
(Unaudited)
|
|
|
|
|
|
|
Net income /
(loss)
|
|
|
13
|
|
(8)
|
Adjustments
|
|
|
|
|
|
Depreciation and amortization
|
|
|
43
|
|
34
|
Finance
costs – net
|
|
|
54
|
|
41
|
Income
tax expense
|
|
|
27
|
|
19
|
Share of
loss of joint-ventures
|
|
|
6
|
|
1
|
Unrealized (gains) / losses on derivatives – net and from
remeasurement of monetary assets and liabilities – net
|
|
|
(23)
|
|
(30)
|
Losses /
(gains) on disposal
|
|
|
1
|
|
(1)
|
Other –
net
|
|
|
1
|
|
1
|
|
|
|
|
|
|
Interest
paid*
|
|
|
(39)
|
|
(28)
|
Income tax
paid
|
|
|
(2)
|
|
(2)
|
Change in trade
working capital
|
|
|
|
|
|
Inventories
|
|
|
(27)
|
|
(22)
|
Trade
receivables
|
|
|
(122)
|
|
(124)
|
Trade
payables
|
|
|
123
|
|
49
|
Change in provisions
and pension obligations
|
|
|
(21)
|
|
(4)
|
Other working
capital
|
|
|
2
|
|
(13)
|
Net cash flows
from / (used in) operating activities
|
|
|
36
|
|
(87)
|
|
|
|
|
|
|
Purchases of
property, plant and equipment
|
|
|
(60)
|
|
(78)
|
Proceeds from
disposals net of cash
|
|
|
—
|
|
(4)
|
Equity contributions
and loans to joint-ventures
|
|
|
(14)
|
|
(19)
|
Other investing
activities
|
|
|
5
|
|
2
|
Net cash flows
used in investing activities
|
|
|
(69)
|
|
(99)
|
|
|
|
|
|
|
Proceeds from
issuance of Senior Notes
|
|
|
610
|
|
375
|
Repayment of Senior
Notes
|
|
|
(610)
|
|
—
|
Proceeds /
(Repayments) from revolving credit facility and other
loans
|
|
|
9
|
|
(34)
|
Payment of deferred
financing costs and exit costs
|
|
|
(40)
|
|
(8)
|
Other financing
activities
|
|
|
27
|
|
4
|
Net cash flows
(used in) / from financing activities
|
|
|
(4)
|
|
337
|
Net (decrease) /
increase in cash and cash equivalents
|
|
|
(37)
|
|
151
|
Cash and cash
equivalents - beginning of period
|
|
|
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)
|
|
(2)
|
Cash and cash
equivalents - end of period
|
|
|
309
|
|
625
|
* 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
|
|
|
|
|
(in millions of
Euros)
|
|
Three months
ended
March 31, 2017
|
|
Three months
ended
March 31, 2016
|
P&ARP
|
|
41
|
|
42
|
A&T
|
|
28
|
|
30
|
AS&I
|
|
31
|
|
27
|
Holdings and
Corporate
|
|
(7)
|
|
(7)
|
Adjusted
EBITDA
|
|
93
|
|
92
|
SHIPMENTS AND
REVENUE BY PRODUCT LINE
|
|
|
|
|
(in k metric
tons)
|
|
Three months
ended
March 31, 2017
|
|
Three months
ended
March 31, 2016
|
Packaging rolled
products
|
|
208
|
|
205
|
Automotive rolled
products
|
|
34
|
|
27
|
Specialty and other
thin-rolled products
|
|
12
|
|
12
|
Aerospace rolled
products
|
|
28
|
|
31
|
Transportation,
industry, and other rolled products
|
|
33
|
|
32
|
Automotive extruded
products
|
|
28
|
|
26
|
Other extruded
products
|
|
32
|
|
31
|
Other
|
|
—
|
|
(2)
|
Total
shipments
|
|
375
|
|
362
|
|
|
|
|
|
(in millions of
Euros)
|
|
Three months
ended
March 31, 2017
|
|
Three months
ended
March 31, 2016
|
Packaging rolled
products
|
|
550
|
|
463
|
Automotive rolled
products
|
|
104
|
|
74
|
Specialty and other
thin-rolled products
|
|
51
|
|
51
|
Aerospace rolled
products
|
|
201
|
|
209
|
Transportation,
industry, and other rolled products
|
|
142
|
|
123
|
Automotive extruded
products
|
|
158
|
|
139
|
Other extruded
products
|
|
128
|
|
122
|
Other and
inter-segment eliminations*
|
|
(6)
|
|
(31)
|
Total
revenue
|
|
1,328
|
|
1,150
|
* 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)
|
(in millions of
Euros)
|
|
Three months
ended
March 31, 2017
|
|
Three months
ended
March 31, 2016
|
Net income /
(loss)
|
|
13
|
|
(8)
|
Income tax
expense
|
|
27
|
|
19
|
Income before
income tax
|
|
40
|
|
11
|
Finance costs –
net
|
|
54
|
|
41
|
Share of loss of
joint-ventures
|
|
6
|
|
1
|
Income from
operations
|
|
100
|
|
53
|
Depreciation and
amortization
|
|
43
|
|
34
|
Restructuring
costs
|
|
2
|
|
—
|
Unrealized (gains) /
losses on derivatives
|
|
(28)
|
|
(30)
|
Unrealized exchange
(gains) / losses from remeasurement of monetary assets and
liabilities - net
|
|
4
|
|
1
|
Gain on pension plans
amendments (A)
|
|
(22)
|
|
—
|
Share based
compensation
|
|
2
|
|
1
|
Metal price
lag(B)
|
|
(13)
|
|
3
|
Start-up and
development costs(C)
|
|
5
|
|
5
|
Manufacturing system
and process transformation costs
|
|
—
|
|
3
|
Wise integration and
acquisition costs
|
|
—
|
|
2
|
Wise one-time
costs(D)
|
|
—
|
|
20
|
Adjusted
EBITDA
|
|
93
|
|
92
|
(A)
|
Pension amendments
were enacted in January 2017 on Swiss pension plan and Ravenswood
salaried pension plans and OPEB resulted respectively in a €12
million and €10 million gain.
|
(B)
|
Metal price lag
represents the financial impact of the timing difference between
when aluminum prices included within Constellium revenues are
established and when aluminum 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 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 three months
ended March 31, 2017, start-up costs relating to new sites and
business development initiatives includes €2 million related to
BiW/ABS growth projects both in Europe and the U.S.
|
(D)
|
For the three months
ended March 31, 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.
|
Reconciliation of
net cash flows from operating activities to Free Cash Flow (a
non-GAAP measure)
|
|
(in millions of
Euros)
|
|
|
Three months
ended
March 31, 2017
|
|
Three months
ended
March 31,
2016
|
Net cash flows
from / (used in) operating activities
|
|
|
36
|
|
(87)
|
Purchases of
property, plant and equipment
|
|
|
(60)
|
|
(78)
|
Equity contributions
and loans to joint-ventures
|
|
|
(14)
|
|
(19)
|
Other investing
activities
|
|
|
5
|
|
2
|
Free cash
flow
|
|
|
(33)
|
|
(182)
|
Reconciliation of
borrowings to Net debt (a non-GAAP measure)
|
|
(in millions of
Euros)
|
|
At March 31,
2017
|
|
At December 31,
2016
|
Borrowings
|
|
2,433
|
|
2,468
|
Fair value of cross
currency basis swaps
|
|
(38)
|
|
(77)
|
Cash and cash
equivalents
|
|
(309)
|
|
(347)
|
Cash pledged for
issuance of guarantees
|
|
(9)
|
|
(9)
|
Net
debt
|
|
2,077
|
|
2,035
|
Non-GAAP measures
In addition to the results reported in accordance with
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board, 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 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.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/constellium-reports-first-quarter-2017-financial-results-300446780.html
SOURCE Constellium