Ormet Corp: modeFinance Credit Report

Tuesday, 26 February 2013

ORMET CORP.

MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

If you want to know more, ASKMORE modeFinance’s credit report.

TM

Almost every day millions of people around the world are wondering the real creditworthiness of the companies with which they are in business. Every day these questions remain unanswered. modeFinance now aims to answer these questions in a simple, complete and immediate way.

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Company name

ORMET CORP.

Identification number

USMB3BCA

Country

United States of America

ZIP code and city

43931 - HANNIBAL

Address

43840, STATE ROUTE 7 +1 740 483 2776 www.ormet.com Not available

Legal form

Not available

Account

Consolidated

Incorporation date NACE 2 Sector

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ASKMORE

TM

2442 - Aluminium production

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ASKMORE is the modeFinance product which gives the chance to evaluate the credit risk for every company from all around the world.

Listed Status

Active

MORE Credit limit

1,600,000 e

plans 3 types of reports:

Turnover (th e) Rating s-peek

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ASKMORE Basic: This report includes modeFinance ’ s MORE Credit Ratings and MORE Credit Limit to help you in the decision making.

It covers all essential information including financial statements of the last three years and descriptive information including trade description and sector analysis.

This report type is ideally suited for decisions on transactions with each level of credit risk.

31/12/2009

Not avail.

323,633

291,048

-

CCC

CCC

n.a.

16.00%

16.00%

n.a.%

100%

100%

n.a.%

-4.18

-2.37

-

0.76

0.58

-

Current Ratio

1.72

1.65

-

Quick Ratio

0.22

0.24

-

Probability of default

Plus

Basic

31/12/2010

Confidence Level

TM

Solvency ratios Leverage ratio Total asset/Total liabilities Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

9.67

24.44

-

-45.53

-22.64

-

Asset turnover

1.56

2.11

-

Interest paid weight

0.79

0.27

-

Gross Profit/Operating revenue

0.13

0.14

-

1.04

1.29

-

Return on equity ROE (%)

Interest Coverage ratios EBIT interest coverage ratio

Analysis and trend of financial strength

modeFinance Headquarter Building A - AREA Science Park Padriciano 99 - 34149 Trieste - Italy Ph.: +39 040 375 5337 Fax: +39 040 375 6741 info@modefinance.com TM

key askMORETM is a registered mark of modeFinanceTM

MORE Credit Rating

D not available

non return

C

CC

extremly pathological pathological

CCC

B

BB

BBB

A

AA

AAA

high danger

weak

sufficient

adequate

good

very strong

extremely strong

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Sector Analysis Company

Healthy

Balanced

Vulnerable

Risky

Solvency ratios Leverage ratio

-4.18

0.60

1.70

5.32

-2.66

Total asset/Total liabilities

0.76

2.68

1.59

1.17

0.97

Current Ratio

1.72

2.19

1.40

1.01

0.64

Quick Ratio

0.22

1.79

0.92

0.65

0.37

Liquidity ratios

Profitability and economic equilibrium ratios Return on investement ROI (%)

9.67

14.13

6.25

1.23

-6.89

-45.53

16.15

9.24

-1.80

-89.17

Asset turnover

1.56

1.64

1.39

1.23

1.25

Interest paid weight

0.79

0.03

0.27

0.22

-0.12

Gross Profit/Operating revenue

0.13

0.19

0.13

0.08

0.05

1.04

38.30

3.30

0.44

-3.83

Days Sales Of Inventory (DIO)

105

30

45

48

54

Days Sales Outstanding (DSO)

10

56

59

64

46

Days Payable Outstanding (DPO)

40

29

28

56

63

Cash Conversion Cycle (DIO + DSO - DPO)

75

61

68

56

39

-

140

418

199

53

CCC

A

BB

B

CC

Return on equity ROE (%)

Interest Coverage ratios EBIT interest coverage ratio Cash Conversion Cycle (days)

Numer of analyzed companies (Average) Rating

The sector has been chosen according to: international companies in the sector NACE 2 2442 with financial data of year 2010.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Sector Analysis - Graphs

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Balance Sheet BALANCE SHEET (th e)

31/12/2010

31/12/2009

Not avail.

Accounting practice

Local GAAP

Local GAAP

-

0.748

0.69416

-

12

12

Total assets

207,601

138,035

-

Fixed assets

101,373

70,135

-

Intangible fixed assets

31,806

29,566

-

Tangible fixed assets

39,968

37,575

-

Other fixed assets

29,599

2,993

-

106,228

67,900

-

92,783

58,182

-

Debtors

8,544

5,979

-

Other current assets

4,902

3,739

-

2,308

2,801

-

-65,300

-100,478

-

14

12

-

Other shareholders funds

-65,315

-100,490

-

Total liabilities

272,901

238,513

-

Non current liabilities

211,216

197,371

-

Long term debt

76,983

36,165

-

134,232

161,206

-

61,686

41,141

-

0

0

-

Creditors

35,716

18,133

-

Other current liabilities

25,971

23,008

-

207,601

138,035

-

31/12/2010

31/12/2009

Not avail.

Exchange rate USD - EUR Number of months

Current assets Stocks

Cash & cash equivalent Shareholders funds Capital

Other non-current liabilities Current liabilities Loans

Total shareh. funds & liab.

NET DEBT (th e) Short term debts Long term debt Cash & cash equivalent Net debt

0

0

-

76,983

36,165

-

2,308

2,801

-

74,675

33,364

-

31/12/2010

31/12/2009

Not avail.

Working capital

65,611

46,028

-

Net Current Assets

44,542

26,759

-

31/12/2010

31/12/2009

Not avail.

Days Sales Of Inventory (DIO)

105

73

-

Days Sales Outstanding (DSO)

10

7

-

Days Payable Outstanding (DPO)

40

23

-

Cash Conversion Cycle (DIO + DSO - DPO)

75

57

-

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

C

D

CC CCC

B

BB BBB

A

AA AAA

key

Income Statement INCOME STATEMENT (th e)

31/12/2010

31/12/2009

Not avail.

Accounting practice

Local GAAP

Local GAAP

-

0.748

0.69416

-

12

12

Exchange rate USD - EUR Number of months Sales

323,633

291,048

-

11

-

-

0

0

-

Operating revenue / turnover

323,633

291,048

-

Total operating costs

307,058

279,485

-

Costs growth (%)

10

-

-

Service costs

-

-

-

Material costs

-

-

-

Costs of employees

-

-

-

EBITDA

28,764

21,710

-

Depreciation

12,189

10,147

-

EBIT

16,575

11,563

-

-12,393

13,174

-

-

-

-

12,393

-13,174

-

15,900

8,997

-

4,182

24,737

-

-1,750

-1,931

-

Extr. and other revenue

-

-

-

Extr. and other expenses

-

-

-

2,432

22,806

-

-27,302

56

-

29,734

22,750

-

31/12/2010

31/12/2009

Not avail.

Revenues growth (%) Other revenues +/- variation in inventories and contract in progress + Fixed assets own construction capitalized

Financial P/L Financial revenue Financial expenses Interest paid P/L before tax Extr. and other P/L

P/L before tax + Extr. and other P/L Taxation P/L for period

Costs of Good Sold

281,193

251,163

-

Gross Profit

42,440

39,885

-

Other Operating Expenses

25,865

28,322

-

31/12/2010

31/12/2009

Not avail.

41,924

32,897

-

-

-

-

Cash flow Added value

31/12/2010 Number of employees

-

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

31/12/2009

Not avail.

-

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

-

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

key

Evolutions and trends

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

AA AAA

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Qualitative information Full overview

The company is engaged in the production of alumina, aluminum and aluminum billet products and the operation of a bulk marine terminal. Its registered head office is strategically located in Hannibal, Ohio, USA. The company’s marine terminal is located in Burnside, Louisiana. Its aluminum smelter is capable of producing 270,000 tons of aluminum per day. The company’s mission is to produce superior quality alumina, aluminum and related products and services at competitive prices supported by an unequaled level of customer service which results in lasting customer relations and optimize profitability. It principally conducts its business operations within the United States.

History

Not available.

Primary business line

Engaged in the production of alumina, aluminum and aluminum billet products and the operation of a bulk marine terminal.

Secondary business line

Not available.

Main activity

Manufacturing.

Secondary activity

Not available.

Main products and services

Alumina, aluminum and aluminum billet products.

Size estimate

Produces 270,000 tons of aluminum per day.

Strategy, organization and policy

To produce superior quality alumina, aluminum and related products and services at competitive prices supported by an unequaled level of customer service which results in lasting customer relations and optimize profitability.

Strategic alliances

Not available.

Membership of a network

Not available.

Main brand names

Not available.

Main domestic country

United States of America.

Main foreign countries or regions

Not available.

Main production sites

Hannibal.

Main distribution sites

Not available.

Main sales representation sites

Not available.

Main customers

Not available.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Auditor/Advisor/Bank name

type

address

PLANTE & MORAN PLLC

Auditor

-

Continental Stock Transfer & Trust

Transfer Agent

-

Board name

date of birth

nationality

function

Mr. Mr. Mr. Mr.

-

-

Director Director Director Director

-

-

President, Chief Executive Officer, Director

Nicholas Burakow Benjamin C. Duster IV Robert Prusak David L Robertson

Mr. Michael F Tanchuk

Sharehoders (the first twenty shareholders ordered by Direct %) Rating:

BOND STREET CAPITAL LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total %

US 16.66

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US 5.25

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

0.17 2.67 5 2012/06

Address : Not available

Rating:

FMR LLC via its funds Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

NORTHEAST INVESTMENT MANAGEMENT, INC. via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct %

US -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees

Total % Address : Not available

2

Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

7757.4 41050 2012/07

0 2012/06

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

CONSTELLATION WEALTH ADVISORS LLC via its funds

Rating:

Country ISO code NACE Rev. 2, Core code Direct % Total % Address : Not available

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

US 0.38

1 12 2012/06

Subsidiaries (the first twenty subsidiaries ordered by Direct %) Rating:

ORMET PRIMARY ALUMINUM CORPORATION Country ISO code NACE Rev. 2, Core code Direct % Total %

US MO -

Operating Revenue (MIL $) Total Assets (MIL $) Number of Employees Information date

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

134.7 1100 2012/10

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

ASKMORE rating guide General vision

A credit rating is an opinion of the general creditworthiness of an obligor (issuer rating), or the creditworthiness of an obligor in respect of a specific debt security, or other financial obligation (issue rating), based on relevant risk factors.

The Multi Objective Rating Evaluation (MORE) model is essentially used to assess the level of distress of industrial companies by using data included in financial statements.

The basic idea of the model is to analyze a set of financial and economic ratios in a predictive corporate bankruptcy model with the purpose of creating a fundamental credit rating model for each industrial sector. Results of the model are obtained by applying newly developed numerical methodologies, drawing together financial theory, data mining and engineering design methodologies. The heart of MORE is a multi dimensional and multi objective algorithm that produces a classification of each company, by taking into account any attributes (such as sector and country) characterizing a firm.

The model gives the opportunity to assign a rating to a company even without considering a complete data analysis and allows to process quality information. It induces a better understanding of a company’s strength and weakness thanks to sophisticated data mining tools and taking into account the analyst knowledge.

The MORE rating vision is to look at the fundamental economics of the company. The main idea is to evaluate the rating observing every aspect of the economical and financial behavior of the company: better is the equilibrium between the different aspects, better will be the final rating.

This is done studying, evaluating and aggregating the most important sections of the financial and economic behavior of a company such as: profitability, liquidity, solvency, interest coverage and efficiency.

modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Rating scale Rating class

Rating macro class

The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent

AAA

AA

Assessment

economic and financial flow and fund equilibrium.

Healthy

The company has very strong creditworthiness. It also has a good capital structure and economic and financial equilibrium. Difference from AAA is slight.

The company has a high solvency. The company is however more susceptible to the adverse effects of changes in

A

circumstances and economic conditions than companies in higher rated categories.

Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial commitments could be affected by serious unfavourable events.

BBB Balanced

A company rated BB is more vulnerable than companies rated BBB. Furthermore the company faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions.

BB

The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic

B

conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.

Vulnerable

CCC

A company rated CCC has a dangerous disequilibrium on the capital structure and on its economic and financial fundamentals. Adverse market events and an inadequate management could affect with high probability the company’s solvency.

CC

The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the company’s strong disequilibrium could increase.

Risky

C

The company shows considerable pathological situations. commitments is very low.

D

The company has not any longer the capacity to meet its financial commitments.

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The company’s capacity to meet its financial

Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Fundamental Credit Rating Ratios Analysis area

Ratio

Assessment This measures the level of total liabilities of the company in comparison

Leverage ratio

with equity.

Solvency ratios

Financial ratios

Assets to debt

This indicates company’s solvency. The company shows a level of deficit when the value of this ratio is under one unit.

Fixed Assets coverage ratio

This is calculated only for holdings. It measures the capital structure i.e. whether a company covers the fixed assets with long term capital.

Current ratio

This measures whether a company has sufficient short-term assets to cover its short-term liabilities.

Liquidity ratios This compares current liabilities only to those assets that can be readily

Quick ratio

turned into cash.

Return on Investement(ROI)

This measures the profitability of company investments without regard to the way the investment is financed.

Return on Equity(ROE)

This measures the profitability of the equity.

Asset turnover

This indicates the investments turnover with regards to sales. The level assumed from the ratio depends on the sector in which the company operates.

Profit margin

This indicates the profitability of sales.

Interest Paid coverage

This indicate the ability of the company to cover interest expenses through the economic margins (Gross profit and EBIT) and through the cash flow from operating activities.

Profitability and economic ratios

Interest coverage ratio

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

MORE Credit Limit, Probability of default and Confidence Level MORE Credit Limit

MORE Credit limit is the estimation of the amount of maximum credit that is possible to assign on a commercial relationship with the analyzed company with an outlook of one year. modeFinance used the following values associated with the company analyzed while computing the credit limit:

• Size; • Years in Business; • Average number of suppliers; • Liquidity of the company and the comparison with its sector; • The funds dedicated to be paid to suppliers; • The likelihood that a company may pay its debts in the next 12 months (MORE Ratings).

The credit limit in this report is merely a suggested value of commercial credit limit calculated on the basis of annual public data. This value should be reviewed by paying attention to the Confidence Level value and by using other information such as other business information, news... etc; and private information such as the relationship with client, history of payments, guarantees and the knowledge of the sector.

Probability of default e Confidence Level

In addition to the MORE Rating, modeFinance also estimates the probability of default and provides a level of confidence. The probability of default is the degree of certainty (in quantitative terms) that the company will go into default.

As the probability of default is strongly affected by the economic climate that the company is operating in, companies in the same MORE class will not necessarily have the same probability of default.

The MORE model can produce a MORE rating even if there is missing data by using an associated confidence level:

Confidence =

P Available Information P Total Information

The level of confidence does not indicate financial confidence in the company. It is a reflection of the variations in availability of financial data across Europe due to filing regulations and suggests the degree of financial detail the MORE rating is able to take into account for each company.

For companies with fully populated records a confidence level of 100% would be applied: companies where no financial data is provided, 0%. This puts the MORE rating in a context for the user and aids interpretation.

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741

ORMET CORP.

Tuesday, 26 February 2013 MORE Credit Rating

D

C

CC CCC

B

BB BBB

A

AA AAA

key

Notes and disclaimer NOTES

modeFinance has based the present analysis on the company available financial statements, coming from one or more of the following sources: local providers, Commercial Register (Companies House), websites, modeFinance’s database etc.

DISCLAIMER

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher modeFinance. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that modeFinance delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such modeFinance can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.

Contacts

Info web

modeFinance MORE rating AREA Science Park 34149 Trieste, via Padriciano 99 - ITALY info@modefinance.com www.modefinance.com

Phone

+39 040 3755337

Company Products Where

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Area Science Park, Padriciano 99. 34149 Trieste, Italy Tel. +39 040 3755337 Fax +39 040 3756741