Kaiser Aluminum(US:KALU)2022-03-01 21:07Financial Performance - For the year ended December 31, 2021, net sales were $2,622.0 million, with $554.1 million recognized over time[273]. - The company reported net sales of $2,622.0 million for the year ended December 31, 2021, a significant increase from $1,172.7 million in 2020, representing a growth of approximately 123.1%[287]. - The cost of products sold for 2021 was $2,348.1 million, up from $941.3 million in 2020, indicating a rise of about 149.1%[287]. - The company incurred a net loss of $18.5 million in 2021, compared to a net income of $28.8 million in 2020, reflecting a decline in profitability[287]. - The company reported a comprehensive loss of $3.5 million for the year ended December 31, 2021, compared to a comprehensive income of $48.7 million in 2020[290]. - The company’s operating income for 2021 was $64.4 million, down from $81.1 million in 2020, indicating a decrease of about 20.5%[287]. - Cash provided by operating activities decreased to $79.4 million in 2021 from $206.9 million in 2020 and $232.3 million in 2019[298]. - The company’s cash and cash equivalents decreased to $303.2 million in 2021 from $780.3 million in 2020, a decline of approximately 61.1%[285]. Assets and Liabilities - Total current assets increased to $1,205.4 million as of December 31, 2021, compared to $1,121.4 million in 2020, marking a growth of approximately 7.5%[285]. - The company’s total liabilities rose to $1,729.9 million in 2021 from $1,132.3 million in 2020, an increase of about 52.7%[285]. - Goodwill increased to $39.3 million in 2021 from $18.8 million in 2020, reflecting the acquisition of Alcoa Warrick LLC and related assets[278]. - The company allocated $50.0 million to intangible assets as part of the acquisition accounting for the Warrick facility[278]. - Total cash, cash equivalents, and restricted cash at the end of 2021 was $317.0 million, down from $794.3 million at the end of 2020[298]. - Trade and other receivables decreased by $90.3 million in 2021, contrasting with an increase of $60.8 million in 2020[298]. - Property, plant, and equipment, net increased to $955.2 million in 2021 from $627.2 million in 2020, showing a strong investment in fixed assets[360]. Acquisitions - The company completed the acquisition of Warrick, resulting in a cash payment of $609.2 million in 2021[298]. - The acquisition of Alcoa Warrick LLC was completed on March 31, 2021, for a total purchase price of $670.0 million, enhancing market diversification in the packaging sector[366]. - Warrick contributed $1,141.2 million in net sales from continuing operations for the period from April 1, 2021, to December 31, 2021[369]. - The total allocated purchase consideration for the Warrick acquisition was finalized at $609.2 million after adjustments[367]. - Goodwill increased to $57.7 million as of December 31, 2021, from $37.2 million in 2020, primarily due to the Warrick acquisition[375]. Cash Flow and Capital Expenditures - Capital expenditures for 2021 were $58.0 million, an increase from $51.9 million in 2020[298]. - The company repurchased common stock worth $12.5 million in 2020 and $44.2 million in 2019, with no repurchases reported in 2021[298]. - Cash dividends declared per common share were $2.88 in 2021, up from $2.68 in 2020 and $2.40 in 2019[294]. Derivative Contracts and Hedging - The company had derivative contracts covering 187.2 million pounds of aluminum in 2021, hedging shipments sold on pricing terms that created aluminum price risk[254]. - The company utilizes hedging transactions to lock in prices for certain products and mitigate exposure to energy price fluctuations[253]. - The company’s derivative financial instruments are used to mitigate exposure to changes in market prices of aluminum and other commodities, with fair values reflected on the Consolidated Balance Sheets[333]. - The total cash flow hedges recognized in the Statements of Consolidated (Loss) Income for 2021 amounted to a loss of $41.9 million, compared to a gain of $17.7 million in 2020[443]. - The company reported a cash flow hedge loss of $35.2 million related to aluminum in 2021, compared to a gain of $13.7 million in 2020[443]. Employee Benefits and Compensation - The pension obligation at the end of 2021 was $20.3 million, an increase from $10.0 million in 2020, while the OPEB obligation was $83.5 million, up from $78.3 million in 2020[393]. - The company expects to contribute $8.6 million to the pension plans in 2022[395]. - The net periodic postretirement benefit cost relating to pension plans for 2021 was $4.3 million, compared to $0.4 million in 2020, showing a substantial increase[408]. - The company’s pension plans included a service cost of $4.1 million for 2021, significantly higher than the $0.3 million recorded in 2020[408]. - Total expenses related to all benefit plans for 2021 were $29.0 million, compared to $19.9 million in 2020, indicating a 45.2% increase[406]. Inventory and Receivables - The company’s inventory cost on a FIFO basis exceeded its stated LIFO value by $137.1 million as of December 31, 2021[319]. - Total inventories rose to $404.6 million in 2021, compared to $152.0 million in 2020, with finished products increasing from $37.2 million to $90.3 million[360]. - Trade receivables, net increased to $332.7 million in 2021 from $112.8 million in 2020, reflecting a substantial growth in receivables[360]. Financial Controls and Reporting - The company maintained effective internal control over financial reporting as of December 31, 2021, based on COSO criteria[264]. - Total assets and total revenues subject to Warrick's internal control represented approximately 34% and 44% of consolidated totals as of December 31, 2021, respectively[265]. Miscellaneous - The company incurred a loss on extinguishment of debt amounting to $35.9 million in 2021, compared to $20.3 million in 2019[298]. - The company recognized $1.3 million in payroll subsidies under the Canada Emergency Wage Subsidy Program during 2020, recorded within Other operating charges (income), net[314]. - The company capitalized $1.2 million in interest expense as part of construction costs for qualifying assets during 2021[322].