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Ormet Corp: modeFinance Credit Report
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If you want to know more, ASKMORE TM
modeFinance’s credit report.
Almost every day millions of peoplearound the world are wondering the realcreditworthiness of the companies withwhich they are in business. Every daythese questions remain unanswered.modeFinance
TM
now aims to answer thesequestions in a simple, complete andimmediate way.
ASKMORETM
is the modeFinanceTM
product which gives the chance toevaluate the credit risk for every companyfrom all around the world.
ASKMORETM plans 3 types of reports:
s-peek Basic Plus
ASKMORETM
Basic:This report includes modeFinance TM
’ sMORE Credit Ratings and MORE CreditLimit to help you in the decision making.It covers all essential information includingfinancial statements of the last three yearsand descriptive information including tradedescription and sector analysis.This report type is ideally suited fordecisions on transactions with each levelof credit risk.
modeFinanceTM HeadquarterBuilding A - AREA Science ParkPadriciano 99 - 34149 Trieste - ItalyPh.: +39 040 375 5337Fax: +39 040 375 [email protected]
askMORETM is a registered mark of modeFinanceTM
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAAnot
available
non return extremlypathological
pathological highdanger
weak sufficient adequate good very
strongextremely
strong
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 2442 - Aluminium production
Listed
Status Active
MORE Credit limit 1,600,000 e
31/12/2010 31/12/2009 Not avail.
Turnover (th e) 323,633 291,048 -
Rating CCC CCC n.a.
Probability of default 16.00% 16.00% n.a.%
Confidence Level 100% 100% n.a.%
Solvency ratios
Leverage ratio -4.18 -2.37 -
Total asset/Total liabilities 0.76 0.58 -
Liquidity ratios
Current Ratio 1.72 1.65 -
Quick Ratio 0.22 0.24 -
Profitability and economic equili-
brium ratios
Return on investement ROI (%) 9.67 24.44 -
Return on equity ROE (%) -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 -
Interest Coverage ratios
EBIT interest coverage ratio 1.04 1.29 -
Analysis and trend of financial
strength
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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
Liquidity ratios
Current Ratio 1.72 2.19 1.40 1.01 0.64
Quick Ratio 0.22 1.79 0.92 0.65 0.37
Profitability and economic equilibrium ratios
Return on investement ROI (%) 9.67 14.13 6.25 1.23 -6.89
Return on equity ROE (%) -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
Interest Coverage ratios
EBIT interest coverage ratio 1.04 38.30 3.30 0.44 -3.83
Cash Conversion Cycle (days)
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
Numer of analyzed companies - 140 418 199 53
(Average) Rating CCC A BB B CC
The sector has been chosen according to:
international companies in the sector NACE 2 2442 with financial data of year 2010.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Sector Analysis - Graphs
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Balance Sheet
BALANCE SHEET (th e) 31/12/2010 31/12/2009 Not avail.
Accounting practice Local GAAP Local GAAP -
Exchange rate USD - EUR 0.748 0.69416 -
Number of months 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 -
Current assets 106,228 67,900 -
Stocks 92,783 58,182 -
Debtors 8,544 5,979 -
Other current assets 4,902 3,739 -
Cash & cash equivalent 2,308 2,801 -
Shareholders funds -65,300 -100,478 -
Capital 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 -
Other non-current liabilities 134,232 161,206 -
Current liabilities 61,686 41,141 -
Loans 0 0 -
Creditors 35,716 18,133 -
Other current liabilities 25,971 23,008 -
Total shareh. funds & liab. 207,601 138,035 -
NET DEBT (th e) 31/12/2010 31/12/2009 Not avail.
Short term debts 0 0 -
Long term debt 76,983 36,165 -
Cash & cash equivalent 2,308 2,801 -
Net debt 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 -
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Income Statement
INCOME STATEMENT (th e) 31/12/2010 31/12/2009 Not avail.
Accounting practice Local GAAP Local GAAP -
Exchange rate USD - EUR 0.748 0.69416 -
Number of months 12 12
Sales 323,633 291,048 -
Revenues growth (%) 11 - -
Other revenues +/- variation in inventories and contract in progress + Fixed assets
own construction capitalized0 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 -
Financial P/L -12,393 13,174 -
Financial revenue - - -
Financial expenses 12,393 -13,174 -
Interest paid 15,900 8,997 -
P/L before tax 4,182 24,737 -
Extr. and other P/L -1,750 -1,931 -
Extr. and other revenue - - -
Extr. and other expenses - - -
P/L before tax + Extr. and other P/L 2,432 22,806 -
Taxation -27,302 56 -
P/L for period 29,734 22,750 -
31/12/2010 31/12/2009 Not avail.
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.
Cash flow 41,924 32,897 -
Added value - - -
31/12/2010 31/12/2009 Not avail.
Number of employees - - -
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Evolutions and trends
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Auditor/Advisor/Bank
name type address
PLANTE & MORAN PLLC Auditor -
Continental Stock Transfer & Trust Transfer Agent -
Board
name date of birth nationality function
Mr. Nicholas Burakow - - Director
Mr. Benjamin C. Duster IV - - Director
Mr. Robert Prusak - - Director
Mr. David L Robertson - - Director
Mr. Michael F Tanchuk - - President, Chief Executive Officer, Director
Sharehoders (the first twenty shareholders ordered by Direct %)
BOND STREET CAPITAL LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 0.17
NACE Rev. 2, Core code - Total Assets (MIL $) 2.67
Direct % - Number of Employees 5
Total % 16.66 Information date 2012/06
Address : Not available
FMR LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 7757.4
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 41050
Total % 5.25 Information date 2012/07
Address : Not available
NORTHEAST INVESTMENT MANAGEMENT, INC. via its funds Rating:
Country ISO code US Operating Revenue (MIL $) -
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 0
Total % 2 Information date 2012/06
Address : Not available
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
CONSTELLATION WEALTH ADVISORS LLC via its funds Rating:
Country ISO code US Operating Revenue (MIL $) 1
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % - Number of Employees 12
Total % 0.38 Information date 2012/06
Address : Not available
Subsidiaries (the first twenty subsidiaries ordered by Direct %)
ORMET PRIMARY ALUMINUM CORPORATION Rating:
Country ISO code US Operating Revenue (MIL $) 134.7
NACE Rev. 2, Core code - Total Assets (MIL $) -
Direct % MO Number of Employees 1100
Total % - Information date 2012/10
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Rating scale
Rating class Rating macro class Assessment
AAA
Healthy
The company’s capacity to meet its financial commitments is extremely strong. The company shows an excellent
economic and financial flow and fund equilibrium.
AAThe company has very strong creditworthiness. It also has a good capital structure and economic and financial
equilibrium. Difference from AAA is slight.
AThe company has a high solvency. The company is however more susceptible to the adverse effects of changes in
circumstances and economic conditions than companies in higher rated categories.
BBB
Balanced
Capital structure and economic equilibrium are considered adequate. The company’s capacity to meet its financial
commitments could be affected by serious unfavourable events.
BBA 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.
B
Vulnerable
The company presents vulnerable signals with regards to its fundamentals. Adverse business, financial, or economic
conditions will be likely to impair the company’s capacity or willingness to meet its financial commitments.
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
Risky
The company shows signals of high vulnerability. In the event of adverse market and economic conditions, the
company’s strong disequilibrium could increase.
CThe company shows considerable pathological situations. The company’s capacity to meet its financial
commitments is very low.
D The company has not any longer the capacity to meet its financial commitments.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
Fundamental Credit Rating Ratios
Analysis area Ratio Assessment
Solvency ratios
Leverage ratioThis measures the level of total liabilities of the company in comparison
with equity.
Assets to debtThis indicates company’s solvency. The company shows a level of deficit
when the value of this ratio is under one unit.
Financial ratios Fixed Assets coverage ratioThis is calculated only for holdings. It measures the capital structure i.e.
whether a company covers the fixed assets with long term capital.
Liquidity ratios
Current ratioThis measures whether a company has sufficient short-term assets to cover
its short-term liabilities.
Quick ratioThis compares current liabilities only to those assets that can be readily
turned into cash.
Profitability and economic ratios
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 coverage ratio 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.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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 =
∑Available Information∑
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.
ORMET CORP.Tuesday, 26 February 2013
MORE Credit Rating
key
D C CC CCC B BB BBB A AA AAA
modeFinance TM srlVAT number [email protected]
Area Science Park,Padriciano 99. 34149 Trieste, ItalyTel. +39 040 3755337Fax +39 040 3756741
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
Company modeFinance
Products MORE rating
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34149 Trieste, via Padriciano 99 - ITALY
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web www.modefinance.com
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