Kaiser Aluminum Corporation announced net income of USD 4 million or USD 0.23 earnings per diluted share for the Q3 2011 compared to USD 5 million or USD 0.24 per diluted share for the Q2 2011 and USD 6 million or USD 0.29 earnings per diluted share for the prior year Q3. Excluding the impact of non run rate items adjusted net income was USD 12 million or USD 0.63 per diluted share for the Q3 2011 which was flat with the Q2 and higher than adjusted net income of USD 8 million or USD 0.44 per diluted share in the prior year Q3.
Q3 highlights:
1. Value added revenue of USD 161 million on improving demand
2. Adjusted EBITDA of USD 28 million; 17% of value added revenue
3. Continued strong order book for aerospace applications
4. Increased revolving credit facility to USD 300 million and maturity to 5 years
Value added revenue of USD 161 million for the Q3 2011 was comparable to the Q2 and increased USD 23 million or 17% from the prior year Q3 reflecting the favorable impact of recent acquisitions and stronger YoY demand. Adjusted consolidated EBITDA was USD 28 million or 17% of value added revenue compared to adjusted consolidated EBITDA of USD 30 million or 19% of value added revenue for the Q2 2011 and reflected significant improvement compared to adjusted consolidated EBITDA of USD 19 million or 14% of value added revenue for the prior year quarter. Adjusted consolidated EBITDA and EBITDA margin for the Q3 2011 reflect improved pass through of metal costs on certain products but also higher underlying costs as rapidly changing volume levels impacted the ability to flex operating costs during the quarter.
Mr Jack A Hockema president, CEO and chairman of Kaiser Aluminum said that "Q3 value added revenue, adjusted EBITDA and EBITDA margin, as indicated in our prior quarter outlook, were similar to the H1 2011 pace as strong aerospace demand offset the impact of normal seasonal weakness. As we look forward, our aerospace order book remains strong and we expect robust aerospace demand to continue in 2012. We are well positioned to meet the growing demand with our previous investments in plate capacity at our Trentwood facility, the expansion of our Kaiser Alexco aerospace extrusion facility scheduled to be completed at year end and the further expansion of plate capacity which we expect will come on stream in 2013."
He said that "In addition, in the Q3 we amended our revolving credit facility, providing more favorable terms and conditions, extending the maturity to 2016 and increasing the size of the facility from USD 200 million to USD 300 million. This financing further strengthens our liquidity position and provides us with enhanced flexibility for the next 5 years."
