Alcoa Corporation (NYSE:AA) Q4 2019 Earnings Conference Call - Final Transcript
Jan 15, 2020 • 05:00 pm ET
Good afternoon and welcome to the Alcoa Corporation Fourth Quarter and Full-Year 2019 Earnings Presentation and Conference Call. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Mr. James Dwyer, Vice President of Investor Relations. Please go ahead.
Thank you, Sean, and good day, everyone. I'm joined today by Roy Harvey, Alcoa Corporation President and Chief Executive Officer; and William Oplinger, Executive Vice President and Chief Financial Officer. We will take your questions after comments by Roy and Bill.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the Company's actual results to differ materially from these statements are included in today's presentation and in our SEC filings.
In addition, we have included some non-GAAP financial measures in this presentation. Reconciliations to the most directly comparable GAAP financial measures can be found in the appendix to today's presentation. Any reference in our discussion today to EBITDA means adjusted EBITDA.
Also, a note on our financial statements. Effective January 1, 2019, the Company changed its accounting method for valuing certain inventories from LIFO to average cost. The effects of the change in accounting principle have been retrospectively applied to all prior periods presented.
Finally, as previously announced, the earnings release and slide presentation are available on our website.
With that, here is Roy.
Roy C. Harvey
Thank you, Jim, and thanks to everyone for joining us today. We've got a lot to discuss. So let's start with a quick overview of the fourth quarter results. For the quarter, we reported a net loss of $303 million, or $1.63 per share. This includes charges associated with the closure of our Point Comfort refinery in Texas, which had been fully curtailed since 2016. And it includes the cost of additional actions we've taken to manage liabilities associated with pensions and other post-employment benefits. Excluding special items, we reported an adjusted net loss of $57 million, or $0.31 per share. On an adjusted EBITDA basis, excluding special items, we generated $346 million.
Lastly, we closed the fourth quarter with $879 million in cash. The second sequential quarterly increase in our cash balance.
Now, as we prepare to close out 2019, let's review some of the actions we've taken and how our priorities are guiding us to make additional improvements. Last quarter, we've refreshed our Company's three strategic priorities. First, we are focused on being a low-cost producer, which means reducing complexity to better compete through all parts of the cycle in our commodity markets. Second, we intend to improve our margins and invest wisely to drive returns. And finally, we are working to advance sustainably, which includes actions toward a strengthened balance sheet, a cycle-proof portfolio and an enhanced reputation for environmental and social excellence. We've made quick progress last quarter with these refreshed priorities and more will be done in the quarters ahead to reinforce Alcoa's competitiveness. We have