Tuesday, 26 February 2013
ORMET CORP.
MORE Credit Rating
C
D
CC CCC
B
BB BBB
A
AA AAA
key
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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
TM
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
TM
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.
modeFinance srl VAT number 01168840328 info@modefinance.com www.modefinance.com TM
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
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
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.
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
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
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