Century Aluminum Company - Form 8-K Summary
Business Context and Reporting Period
This Form 8-K, dated February 27, 2009, reports a material error in the previously issued financial statements for the nine months ended September 30, 2008. The filing addresses a restatement of the interim consolidated statement of cash flows required due to the incorrect presentation of a preferred stock issuance.
Key Financial Metrics and Restatement Impact
The filing does not provide updated revenue, profit, or debt totals, but details a significant reclassification of cash flows for the nine months ended September 30, 2008, related to the issuance of $929 million of Series A Convertible Preferred Stock.
| Metric (Nine Months Ended Sept 30, 2008) | As Reported | As Adjusted | Adjustment |
|---|---|---|---|
| Net Loss | $(198,164) | $(198,164) | $0 |
| Net Cash Provided by (Used in) Operating Activities | $230,759 | $(698,721) | $(929,480) |
| Net Cash Provided by (Used in) Financing Activities | $(35,895) | $893,585 | $929,480 |
| Net Change in Cash | $68,093 | $68,093 | $0 |
| Cash, End of Period | $129,055 | $129,055 | $0 |
Note: All figures are in thousands unless otherwise noted. The net change in cash and ending cash balance remain unchanged.
Material Changes and Error Description
The Company determined that cash flows associated with the termination of forward financial sales contracts, funded by the issuance of $929 million of Series A Convertible Preferred Stock in July 2008, were incorrectly presented on a net basis as an operating activity. Management concluded the transaction should be presented on a gross basis, reflecting cash receipts and disbursements as both an operating activity and a financing activity in accordance with SFAS No. 95.
Management Commentary and Outlook
Management has discussed the restatement with the independent registered public accounting firm, Deloitte and Touche, LLP. The Company will correct the interim consolidated statement of cash flows when filing the Quarterly Report on Form 10-Q for the period ending September 30, 2009. The filing does not provide new guidance, outlook, or discussion of risks beyond the accounting error.
Investor Verification Checklist
- Verify the upcoming Form 10-Q for the period ending September 30, 2009, to confirm the restated cash flow statement.
- Review the original Form 10-Q for the nine months ended September 30, 2008, to understand the initial misclassification of the $929 million preferred stock issuance.
- Confirm that the restatement does not impact the reported Net Loss or the ending Cash Balance for the period.
- Assess the impact of the reclassification on operating cash flow metrics used in credit or liquidity analysis.