Ferroglobe PLC (NASDAQ: GSM) (throughout, “Ferroglobe”, the
“Company”, or the “Parent”), a leading producer globally of silicon
metal, and a leading silicon- and manganese-based specialty alloys
producer, today announced results for the fourth quarter and the
full year 2019.
Q4 2019 Earnings
Highlights
In Q4 2019, Ferroglobe posted a net loss of $(75.7)
million, or $(0.44) per share on a fully diluted basis. On an
adjusted basis, Q4 2019 net loss was $(53.8) million, or $(0.32)
per share on a fully diluted basis.
Q4 2019 reported EBITDA was $(56.2) million, up
from $(183.1) million in the prior quarter. On an adjusted basis,
Q4 2019 EBITDA was $(38.1) million, down from Q3 2019 adjusted
EBITDA of $(7.2) million. The Company reported an adjusted EBITDA
margin of -10.5% for Q4 2019, compared to an adjusted EBITDA margin
of -1.9% for Q3 2019.
Full Year 2019 Earnings
Highlights
For Full Year 2019, Ferroglobe posted a net loss
of $(288.1) million, or $(1.67) per share. On an adjusted basis,
Full Year 2019 net loss was $(114.0) million, or $(0.68) per
share.
For the Full Year 2019, reported EBITDA was
$(243.1) million, versus $212.9 million in the prior year. Full
Year 2019 Adjusted EBITDA was $(37.0) million, versus $230.1
million in the prior year. The Company reported an adjusted EBITDA
margin of -2.3% for Full Year 2019, compared to an adjusted EBITDA
margin of 10.3% for Full Year 2018.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
$,000
(unaudited) |
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 * |
|
December 31, 2019 |
|
December 31, 2018 * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
364,431 |
|
|
$ |
381,745 |
|
|
$ |
591,052 |
|
|
$ |
1,603,046 |
|
|
$ |
2,242,002 |
|
Net (loss) profit |
|
$ |
(75,746 |
) |
|
$ |
(140,139 |
) |
|
$ |
(74,155 |
) |
|
$ |
(288,097 |
) |
|
$ |
24,573 |
|
Diluted EPS |
|
$ |
(0.44 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.67 |
) |
|
$ |
0.25 |
|
Adjusted net (loss) income
attributable to the parent |
|
$ |
(53,801 |
) |
|
$ |
(16,085 |
) |
|
$ |
5,205 |
|
|
$ |
(113,998 |
) |
|
$ |
64,392 |
|
Adjusted diluted EPS |
|
$ |
(0.32 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.03 |
|
|
$ |
(0.68 |
) |
|
$ |
0.36 |
|
Adjusted EBITDA |
|
$ |
(38,132 |
) |
|
$ |
(7,210 |
) |
|
$ |
23,184 |
|
|
$ |
(36,980 |
) |
|
$ |
230,051 |
|
Adjusted EBITDA margin |
|
|
-10.5 |
% |
|
|
-1.9 |
% |
|
|
3.9 |
% |
|
|
-2.3 |
% |
|
|
10.3 |
% |
* Throughout the results, the amounts for prior
periods have been restated to reflect the impact of the profit /
(loss) from discontinued operations associated with the sale of
FerroAtlántica S.A.U., owner of the Cee-Dumbria plant and
hydroelectric assets in Spain.
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer
commented, “The Company’s disappointing fourth quarter results are
representative of the challenges faced throughout 2019. We
experienced continued pricing and volume pressures during the
quarter, with increased costs as a result of the previously
announced operational curtailments. To mitigate the impact of
these challenges, we successfully executed a number of cash
generating initiatives, selling non-core assets, reducing inventory
and releasing cash through the refinancing of the Company’s
accounts receivable securitization program. Given these
headwinds and their impact on our balance sheet, a new
strategic plan is being developed aimed at returning the
Company to profitability.”
Cash Flow and Balance
Sheet
Cash generated from operations during Q4 2019
was $45.5 million, with working capital positively impacted by
a decrease in inventories, offset by a decrease in payables.
Working capital decreased from $579 million as of September 30,
2019 to $481 million at December 31, 2019.
Gross debt was $481 million as of December 31,
2019, down significantly from $556 million as of September 30,
2019, primarily as a result of refinancing the Company’s former
revolving credit facility (“RCF”).
Recent developments
On October 4, 2019, Ferroglobe subsidiary, Silicon Smelters
(Pty.) Ltd. completed the sale of its remaining timberlands in
South Africa for net proceeds of ZAR 130 million ($8.58
million).
On October 11, 2019, Ferroglobe completed the closing of a new
five-year, $100 million North American asset-based revolving loan
(“ABL”), with an initial draw of $70 million, which was used, along
with cash on hand, to repay in full the RCF. This marked an
important step in the Company’s overall strategy to de-risk the
balance sheet, as the ABL has no leverage-based or financial-based
covenants and has reduced liquidity requirements as compared to the
RCF, affording the Company enhanced flexibility.
On December 10, 2019, Ferroglobe refinanced its prior accounts
receivable securitization program with a new two-year, $150 million
European program (“new A/R Program”), of which $104 million was
utilized at closing. Subsequently, the incorporation of a special
purpose vehicle (“SPV”) into the program resulted in significant
additional receivables qualifying into the program.
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer
commented, “The successful closing of the new A/R Program has a
significant impact on our cash conversion in Europe. At
closing, approximately $23 million of cash was released and another
$31.5 million was released on incorporation of the SPV in February
2020. These steps highlight the Company’s continued efforts
to optimize the business operationally and financially.”
COVID-19
Marco Levi, Ferroglobe’s Chief Executive Officer commented, “ To
date our business has not been directly impacted by the
coronavirus. However, given the increasing concerns around the
spreading of this virus globally, we continue to monitor the
potential impact on our business very closely.”
Subsequent Event
On January 13, 2020, Ferroglobe appointed Dr. Marco Levi as its
Chief Executive Officer (“CEO”). As CEO, Dr. Levi was
subsequently appointed to the Company’s Board of Directors on
January 15, 2020, bringing the number of Directors on the Board to
nine.
Discussion of Fourth Quarter 2019
Results
Sales
Sales for Q4 2019 were $364.4 million, a decrease
of 4.5% compared to $381.7 million in Q3 2019. For Q4 2019, total
shipments were down 1.2% and the average selling price was down
3.5% compared with Q3 2019.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Year Ended |
|
Year Ended |
|
|
|
|
December 31, 2019 |
|
September 30, 2019 |
|
Change |
|
December 31, 2018 |
|
Change |
|
December 31, 2019 |
|
December 31, 2018 |
|
Change |
Shipments in
metric tons: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
|
61,613 |
|
|
60,225 |
|
2.3 |
% |
|
|
93,364 |
|
-34.0 |
% |
|
|
238,192 |
|
|
352,578 |
|
-32.4 |
% |
Silicon-based Alloys |
|
|
64,485 |
|
|
69,879 |
|
-7.7 |
% |
|
|
81,197 |
|
-20.6 |
% |
|
|
295,429 |
|
|
311,703 |
|
-5.2 |
% |
Manganese-based Alloys |
|
|
95,235 |
|
|
93,996 |
|
1.3 |
% |
|
|
147,445 |
|
-35.4 |
% |
|
|
392,456 |
|
|
424,358 |
|
-7.5 |
% |
Total shipments* |
|
|
221,333 |
|
|
224,100 |
|
-1.2 |
% |
|
|
322,006 |
|
-31.3 |
% |
|
|
926,077 |
|
|
1,088,639 |
|
-14.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
selling price ($/MT): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
2,175 |
|
$ |
2,175 |
|
0.0 |
% |
|
$ |
2,429 |
|
-10.5 |
% |
|
$ |
2,256 |
|
$ |
2,647 |
|
-14.8 |
% |
Silicon-based Alloys |
|
$ |
1,424 |
|
$ |
1,490 |
|
-4.4 |
% |
|
$ |
1,719 |
|
-17.2 |
% |
|
$ |
1,547 |
|
$ |
1,845 |
|
-16.2 |
% |
Manganese-based Alloys |
|
$ |
1,054 |
|
$ |
1,140 |
|
-7.5 |
% |
|
$ |
1,158 |
|
-9.0 |
% |
|
$ |
1,140 |
|
$ |
1,244 |
|
-8.4 |
% |
Total* |
|
$ |
1,474 |
|
$ |
1,527 |
|
-3.5 |
% |
|
$ |
1,668 |
|
-11.6 |
% |
|
$ |
1,557 |
|
$ |
1,870 |
|
-16.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
selling price ($/lb.): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
0.99 |
|
$ |
0.99 |
|
0.0 |
% |
|
$ |
1.10 |
|
-10.5 |
% |
|
$ |
1.02 |
|
$ |
1.20 |
|
-14.8 |
% |
Silicon-based Alloys |
|
$ |
0.65 |
|
$ |
0.68 |
|
-4.4 |
% |
|
$ |
0.78 |
|
-17.2 |
% |
|
$ |
0.70 |
|
$ |
0.84 |
|
-16.2 |
% |
Manganese-based Alloys |
|
$ |
0.48 |
|
$ |
0.52 |
|
-7.5 |
% |
|
$ |
0.53 |
|
-9.0 |
% |
|
$ |
0.52 |
|
$ |
0.56 |
|
-8.4 |
% |
Total* |
|
$ |
0.67 |
|
$ |
0.69 |
|
-3.5 |
% |
|
$ |
0.76 |
|
-11.6 |
% |
|
$ |
0.71 |
|
$ |
0.85 |
|
-16.8 |
% |
* Excludes by-products and other
Sales Prices & Volumes By
Product
During Q4 2019, total product average selling
prices decreased by 3.5% versus Q3 2019. Q4 average selling prices
of silicon metal remained unchanged, silicon-based alloys prices
decreased 4.4%, and manganese-based alloys prices decreased
7.5%.
Sales volumes in Q4 declined by 1.2% versus the
prior quarter. Q4 sales volumes of silicon metal increased
2.3%, silicon-based alloys decreased 7.7%, and manganese-based
alloys increased 1.3% versus Q4 2019.
Cost of Sales
Cost of sales was $300.6 million in Q4 2019, an increase from
$277.7 million in the prior quarter. Cost of sales as a percentage
of sales increased to 82.5% in Q4 2019 versus 72.8% for Q3 2019,
linked primarily to product mix, costs associated with implementing
the temporary curtailments to our operations, and inventory write
downs across our product portfolio.
Other Operating
Expenses
Other operating expenses was $58.8 million in Q4 2019, an
increase from $50.1 million in the prior quarter. This increase is
primarily attributable to non recurrent costs associated with the
energy contracts at plants in Europe temporarily idled.
Net Loss Attributable to the
Parent
In Q4 2019, net loss attributable to the Parent was $74.5
million, or $(0.44) per diluted share, compared to a net loss
attributable to the Parent of $140.5 million, or $(0.83) per
diluted share in Q3 2019.
Adjusted
EBITDA
In Q4 2019, adjusted EBITDA was $(38.1) million, or -10.5% of
sales, compared to adjusted EBITDA of $(7.2) million, or -1.9% of
sales in Q3 2019, primarily due to weaker pricing and costs
incurred in Q4 2019.
Conference
Call
Ferroglobe management will review the fourth quarter and
full year results of 2019 during a conference call at
9:00 a.m. Eastern Time on March 3, 2020.
The dial-in number for participants in the United
States is 877‑293‑5491 (conference ID 4987662). International
callers should dial +1 914‑495‑8526 (conference ID 4987662). Please
dial in at least five minutes prior to the call to register. The
call may also be accessed via an audio webcast available
at https://edge.media-server.com/mmc/p/ci6ip3a5.
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of
silicon metal, silicon-based and manganese-based specialty alloys
and other ferroalloys, serving a customer base across the globe in
dynamic and fast-growing end markets, such as solar, automotive,
consumer products, construction and energy. The Company is based
in London. For more information,
visit http://investor.ferroglobe.com.
Forward-Looking
Statements
This release contains “forward-looking statements” within the
meaning of U.S. securities laws. Forward-looking statements are not
historical facts but are based on certain assumptions of management
and describe the Company’s future plans, strategies and
expectations. Forward-looking statements often use forward-looking
terminology, including words such as “anticipate”, “believe”,
“could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”,
“likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”,
“will” and words of similar meaning or the negative
thereof.
Forward-looking statements contained in this press release are
based on information currently available to the Company and
assumptions that management believe to be reasonable, but are
inherently uncertain. As a result, Ferroglobe’s actual results,
performance or achievements may differ materially from those
expressed or implied by these forward-looking statements, which are
not guarantees of future performance and involve known and unknown
risks, uncertainties and other factors that are, in some cases,
beyond the Company’s control.
Forward-looking financial information and other metrics
presented herein represent the Company’s goals and are not intended
as guidance or projections for the periods referenced herein or any
future periods.
All information in this press release is as of the date of its
release. Ferroglobe does not undertake any obligation to
update publicly any of the forward-looking statements contained
herein to reflect new information, events or circumstances arising
after the date of this press release. You should not place undue
reliance on any forward-looking statements, which are made only as
of the date of this press
release.
Non-IFRS
Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit,
adjusted profit per share, working capital and net debt, are
non-IFRS financial metrics that, we believe, are pertinent measures
of Ferroglobe’s success. Ferroglobe has included these financial
metrics to provide supplemental measures of its performance. The
Company believes these metrics are important because they eliminate
items that have less bearing on the Company’s current and future
operating performance and highlight trends in its core business
that may not otherwise be apparent when relying solely on IFRS
financial measures.
INVESTOR CONTACT:Gaurav Mehta EVP – Investor
Relations
Email: investor.relations@ferroglobe.com
Louie Toma Managing Director Hayden
IRTel:
1-774-291-6000Email: louie@haydenir.com
Ferroglobe PLC and
SubsidiariesUnaudited Condensed
Consolidated Income Statement(in
thousands of U.S. dollars, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018* |
|
December 31, 2019 |
|
December 31, 2018* |
Sales |
|
$ |
364,431 |
|
|
$ |
381,745 |
|
|
$ |
591,052 |
|
|
$ |
1,603,046 |
|
|
$ |
2,242,002 |
|
Cost of sales |
|
|
(300,611 |
) |
|
|
(277,692 |
) |
|
|
(448,048 |
) |
|
|
(1,200,103 |
) |
|
|
(1,446,677 |
) |
Other operating income |
|
|
8,428 |
|
|
|
13,215 |
|
|
|
24,919 |
|
|
|
50,194 |
|
|
|
45,844 |
|
Staff costs |
|
|
(69,490 |
) |
|
|
(72,536 |
) |
|
|
(80,656 |
) |
|
|
(291,141 |
) |
|
|
(338,862 |
) |
Other operating expense |
|
|
(58,826 |
) |
|
|
(50,060 |
) |
|
|
(70,337 |
) |
|
|
(225,727 |
) |
|
|
(277,560 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
(30,016 |
) |
|
|
(29,591 |
) |
|
|
(28,345 |
) |
|
|
(120,181 |
) |
|
|
(113,837 |
) |
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
(4,491 |
) |
|
|
— |
|
|
|
40,142 |
|
Other gain (loss) |
|
|
390 |
|
|
|
(3,774 |
) |
|
|
4,005 |
|
|
|
(3,506 |
) |
|
|
6,941 |
|
Operating (loss) profit before impairment
losses |
|
|
(85,694 |
) |
|
|
(38,693 |
) |
|
|
(11,901 |
) |
|
|
(187,418 |
) |
|
|
157,993 |
|
Impairment losses |
|
|
(546 |
) |
|
|
(174,018 |
) |
|
|
(58,919 |
) |
|
|
(175,899 |
) |
|
|
(58,919 |
) |
Operating (loss) profit |
|
|
(86,240 |
) |
|
|
(212,711 |
) |
|
|
(70,820 |
) |
|
|
(363,317 |
) |
|
|
99,074 |
|
Net finance expense |
|
|
(16,496 |
) |
|
|
(16,491 |
) |
|
|
(13,915 |
) |
|
|
(61,857 |
) |
|
|
(52,207 |
) |
Financial derivatives (loss) gain |
|
|
(1,153 |
) |
|
|
2,913 |
|
|
|
1,383 |
|
|
|
2,729 |
|
|
|
2,838 |
|
Exchange differences |
|
|
4,341 |
|
|
|
(5,083 |
) |
|
|
(3,086 |
) |
|
|
2,859 |
|
|
|
(14,136 |
) |
(Loss) profit before tax |
|
|
(99,548 |
) |
|
|
(231,372 |
) |
|
|
(86,438 |
) |
|
|
(419,586 |
) |
|
|
35,569 |
|
Income tax benefit (expense) |
|
|
22,710 |
|
|
|
14,322 |
|
|
|
7,891 |
|
|
|
50,132 |
|
|
|
(20,459 |
) |
(Loss) profit for the period from continuing
operations |
|
|
(76,838 |
) |
|
|
(217,050 |
) |
|
|
(78,547 |
) |
|
|
(369,454 |
) |
|
|
15,110 |
|
Profit for the period from discontinued operations |
|
|
1,092 |
|
|
|
76,911 |
|
|
|
4,392 |
|
|
|
81,357 |
|
|
|
9,463 |
|
(Loss) profit for the
period |
|
|
(75,746 |
) |
|
|
(140,139 |
) |
|
|
(74,155 |
) |
|
|
(288,097 |
) |
|
|
24,573 |
|
Loss (profit) attributable to non-controlling interest |
|
|
1,240 |
|
|
|
(385 |
) |
|
|
14,943 |
|
|
|
5,414 |
|
|
|
19,088 |
|
(Loss) profit attributable to the
parent |
|
$ |
(74,506 |
) |
|
$ |
(140,524 |
) |
|
$ |
(59,212 |
) |
|
$ |
(282,683 |
) |
|
$ |
43,661 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
(56,224 |
) |
|
$ |
(183,120 |
) |
|
$ |
(42,475 |
) |
|
$ |
(243,136 |
) |
|
$ |
212,911 |
|
Adjusted EBITDA |
|
$ |
(38,132 |
) |
|
$ |
(7,210 |
) |
|
$ |
23,184 |
|
|
$ |
(36,980 |
) |
|
$ |
230,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,182 |
|
|
|
169,123 |
|
|
|
171,935 |
|
|
|
169,153 |
|
|
|
171,966 |
|
Diluted |
|
|
169,182 |
|
|
|
169,123 |
|
|
|
171,935 |
|
|
|
169,153 |
|
|
|
172,104 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.44 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.67 |
) |
|
$ |
0.25 |
|
Diluted |
|
$ |
(0.44 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.67 |
) |
|
$ |
0.25 |
|
* The amounts for prior periods have been restated to reflect
the impact of the profit / (loss) from discontinued operations
associated with the sale of the Company’s Spanish hydroelectric
plants
Ferroglobe PLC and
SubsidiariesUnaudited Condensed
Consolidated Statement of Financial
Position(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
2019 |
|
2019 |
|
2018 |
ASSETS |
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
|
29,702 |
|
$ |
29,702 |
|
$ |
202,848 |
Other intangible assets |
|
|
|
58,781 |
|
|
63,980 |
|
|
51,822 |
Property, plant and equipment |
|
|
|
741,236 |
|
|
742,752 |
|
|
888,862 |
Other non-current financial assets |
|
|
|
2,601 |
|
|
3,381 |
|
|
70,343 |
Deferred tax assets |
|
|
|
36,387 |
|
|
50,214 |
|
|
14,589 |
Non-current receivables from related parties |
|
|
|
2,247 |
|
|
2,178 |
|
|
2,288 |
Other non-current assets |
|
|
|
1,598 |
|
|
1,780 |
|
|
10,486 |
Non-current restricted cash and cash equivalents |
|
|
|
28,323 |
|
|
10,889 |
|
|
— |
Total non-current assets |
|
|
|
900,875 |
|
|
904,876 |
|
|
1,241,238 |
Current assets |
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
360,340 |
|
|
479,866 |
|
|
456,970 |
Trade and other receivables |
|
|
|
302,321 |
|
|
332,603 |
|
|
155,996 |
Current receivables from related parties |
|
|
|
2,955 |
|
|
2,839 |
|
|
14,226 |
Current income tax assets |
|
|
|
36,508 |
|
|
41,649 |
|
|
27,404 |
Other current financial assets |
|
|
|
5,544 |
|
|
1,660 |
|
|
2,523 |
Other current assets |
|
|
|
14,457 |
|
|
12,157 |
|
|
8,813 |
Cash and cash equivalents * |
|
|
|
99,235 |
|
|
177,154 |
|
|
216,647 |
Assets and disposal groups classified as held for sale |
|
|
|
— |
|
|
8,507 |
|
|
— |
Total current assets |
|
|
|
821,360 |
|
|
1,056,435 |
|
|
882,579 |
Total assets |
|
$ |
|
1,722,235 |
|
$ |
1,961,311 |
|
$ |
2,123,817 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
|
599,437 |
|
$ |
664,300 |
|
$ |
884,372 |
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
|
1,592 |
|
|
4,061 |
|
|
1,434 |
Provisions |
|
|
|
86,354 |
|
|
78,272 |
|
|
75,787 |
Bank borrowings |
|
|
|
144,388 |
|
|
130,622 |
|
|
132,821 |
Lease liabilities |
|
|
|
16,972 |
|
|
16,417 |
|
|
53,472 |
Debt instruments |
|
|
|
344,014 |
|
|
343,400 |
|
|
341,657 |
Other financial liabilities |
|
|
|
15,829 |
|
|
10,307 |
|
|
32,788 |
Other non-current liabilities |
|
|
|
29,170 |
|
|
29,982 |
|
|
25,030 |
Deferred tax liabilities |
|
|
|
52,557 |
|
|
82,192 |
|
|
77,379 |
Total non-current
liabilities |
|
|
|
690,876 |
|
|
695,253 |
|
|
740,368 |
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Provisions |
|
|
|
52,398 |
|
|
51,667 |
|
|
40,570 |
Bank borrowings |
|
|
|
14,611 |
|
|
130,272 |
|
|
8,191 |
Lease liabilities |
|
|
|
8,900 |
|
|
8,218 |
|
|
12,999 |
Debt instruments |
|
|
|
10,937 |
|
|
2,734 |
|
|
10,937 |
Other financial liabilities |
|
|
|
50,710 |
|
|
49,978 |
|
|
52,524 |
Payables to related parties |
|
|
|
4,830 |
|
|
9,160 |
|
|
11,128 |
Trade and other payables |
|
|
|
181,545 |
|
|
233,811 |
|
|
256,823 |
Current income tax liabilities |
|
|
|
1,736 |
|
|
11,173 |
|
|
2,335 |
Other current liabilities |
|
|
|
106,255 |
|
|
104,745 |
|
|
103,570 |
Liabilities associated with assets classified as held for sale |
|
|
|
— |
|
|
— |
|
|
— |
Total current
liabilities |
|
|
|
431,922 |
|
|
601,758 |
|
|
499,077 |
Total equity and
liabilities |
|
$ |
|
1,722,235 |
|
$ |
1,961,311 |
|
$ |
2,123,817 |
*Cash and cash equivalents at December 31, 2019 includes the
cash balance of the A/R securitization program of $38,778 ($9,088
and $nil at September 30, 2019 and December 31, 2018,
respectively)
Ferroglobe PLC and
SubsidiariesUnaudited Condensed
Consolidated Statement of Cash
Flows(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 |
|
|
December 31, 2019 |
|
December 31, 2018 |
Cash flows
from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
for the period |
|
$ |
(75,746 |
) |
|
$ |
(140,139 |
) |
|
$ |
(74,155 |
) |
|
|
$ |
(288,097 |
) |
|
$ |
24,573 |
|
Adjustments to
reconcile net (loss) profit to net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
(22,710 |
) |
|
|
(14,489 |
) |
|
|
(6,310 |
) |
|
|
|
(49,118 |
) |
|
|
24,233 |
|
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
30,016 |
|
|
|
29,591 |
|
|
|
30,062 |
|
|
|
|
123,011 |
|
|
|
119,137 |
|
Net finance expense |
|
|
16,496 |
|
|
|
20,893 |
|
|
|
15,128 |
|
|
|
|
68,290 |
|
|
|
56,648 |
|
Financial derivatives loss (gain) |
|
|
1,154 |
|
|
|
(2,913 |
) |
|
|
(1,383 |
) |
|
|
|
(2,728 |
) |
|
|
(2,838 |
) |
Exchange differences |
|
|
(4,341 |
) |
|
|
5,083 |
|
|
|
3,088 |
|
|
|
|
(2,859 |
) |
|
|
14,138 |
|
Impairment losses |
|
|
546 |
|
|
|
174,018 |
|
|
|
58,919 |
|
|
|
|
175,899 |
|
|
|
58,919 |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
4,491 |
|
|
|
|
— |
|
|
|
(40,142 |
) |
Gain on disposal of discontinued operation |
|
|
1,107 |
|
|
|
(80,729 |
) |
|
|
— |
|
|
|
|
(79,622 |
) |
|
|
— |
|
Share-based compensation |
|
|
1,599 |
|
|
|
1,015 |
|
|
|
1,016 |
|
|
|
|
4,879 |
|
|
|
2,798 |
|
Other adjustments |
|
|
(390 |
) |
|
|
3,774 |
|
|
|
(4,006 |
) |
|
|
|
3,506 |
|
|
|
(6,942 |
) |
Changes in
operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
126,422 |
|
|
|
5,953 |
|
|
|
91,180 |
|
|
|
|
85,460 |
|
|
|
(101,017 |
) |
(Increase) decrease in trade receivables |
|
|
34,036 |
|
|
|
5,568 |
|
|
|
(12,261 |
) |
|
|
|
35,659 |
|
|
|
(25,807 |
) |
Increase (decrease) in trade payables |
|
|
(58,816 |
) |
|
|
(10,693 |
) |
|
|
5,772 |
|
|
|
|
(70,851 |
) |
|
|
55,410 |
|
Other |
|
|
(869 |
) |
|
|
(59,689 |
) |
|
|
6,508 |
|
|
|
|
(22,299 |
) |
|
|
(25,901 |
) |
Income taxes paid |
|
|
(523 |
) |
|
|
(846 |
) |
|
|
(6,983 |
) |
|
|
|
(3,589 |
) |
|
|
(36,408 |
) |
Interest paid |
|
|
(2,471 |
) |
|
|
(18,713 |
) |
|
|
(4,360 |
) |
|
|
|
(43,033 |
) |
|
|
(43,018 |
) |
Net cash
(used) provided by operating activities |
|
|
45,510 |
|
|
|
(82,316 |
) |
|
|
106,706 |
|
|
|
|
(65,492 |
) |
|
|
73,783 |
|
Cash flows
from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
171 |
|
|
|
626 |
|
|
|
843 |
|
|
|
|
1,673 |
|
|
|
3,833 |
|
Payments due
to investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
9,088 |
|
|
|
— |
|
|
|
|
9,088 |
|
|
|
(20,379 |
) |
Other intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(240 |
) |
|
|
|
(184 |
) |
|
|
(3,313 |
) |
Property, plant and equipment |
|
|
(5,885 |
) |
|
|
(6,269 |
) |
|
|
(28,131 |
) |
|
|
|
(32,730 |
) |
|
|
(106,136 |
) |
Other |
|
|
(621 |
) |
|
|
— |
|
|
|
— |
|
|
|
|
(1,248 |
) |
|
|
(8 |
) |
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of subsidiaries |
|
|
1,111 |
|
|
|
171,058 |
|
|
|
20,533 |
|
|
|
|
172,169 |
|
|
|
20,533 |
|
Other non-current assets |
|
|
8,668 |
|
|
|
— |
|
|
|
— |
|
|
|
|
8,668 |
|
|
|
12,734 |
|
Other |
|
|
353 |
|
|
|
19 |
|
|
|
— |
|
|
|
|
3,769 |
|
|
|
6,861 |
|
Net cash used
by investing activities |
|
|
3,797 |
|
|
|
174,522 |
|
|
|
(6,995 |
) |
|
|
|
161,205 |
|
|
|
(85,875 |
) |
Cash flows
from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(20,642 |
) |
Payment for debt issuance
costs |
|
|
(12,319 |
) |
|
|
(2,093 |
) |
|
|
(429 |
) |
|
|
|
(15,117 |
) |
|
|
(4,905 |
) |
Repayment of hydro leases |
|
|
— |
|
|
|
(55,352 |
) |
|
|
— |
|
|
|
|
(55,352 |
) |
|
|
— |
|
Repayment of other financial
liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(33,096 |
) |
Increase/(decrease) in bank
borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
174,130 |
|
|
|
— |
|
|
|
6,882 |
|
|
|
|
245,629 |
|
|
|
252,200 |
|
Payments |
|
|
(269,399 |
) |
|
|
(21,038 |
) |
|
|
— |
|
|
|
|
(329,500 |
) |
|
|
(106,514 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
240 |
|
Other amounts paid due to
financing activities |
|
|
(4,363 |
) |
|
|
(9,324 |
) |
|
|
(3,178 |
) |
|
|
|
(26,631 |
) |
|
|
(13,879 |
) |
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
(16,597 |
) |
|
|
|
— |
|
|
|
(20,100 |
) |
Net cash
provided (used) by financing activities |
|
|
(111,951 |
) |
|
|
(87,807 |
) |
|
|
(13,322 |
) |
|
|
|
(180,971 |
) |
|
|
53,304 |
|
Total net cash
flows for the period |
|
|
(62,644 |
) |
|
|
4,399 |
|
|
|
86,389 |
|
|
|
|
(85,258 |
) |
|
|
41,212 |
|
Beginning balance of cash and cash equivalents |
|
|
188,043 |
|
|
|
188,045 |
|
|
|
131,671 |
|
|
|
|
216,647 |
|
|
|
184,472 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
2,159 |
|
|
|
(4,401 |
) |
|
|
(1,413 |
) |
|
|
|
(3,832 |
) |
|
|
(9,037 |
) |
Ending balance
of cash and cash equivalents |
|
$ |
127,558 |
|
|
$ |
188,043 |
|
|
$ |
216,647 |
|
|
|
$ |
127,558 |
|
|
$ |
216,647 |
|
Cash from continuing
operations |
|
|
99,235 |
|
|
|
177,154 |
|
|
|
216,647 |
|
|
|
|
99,235 |
|
|
|
216,647 |
|
Non-current restricted cash
and cash equivalents |
|
|
28,323 |
|
|
|
10,889 |
|
|
|
— |
|
|
|
|
28,323 |
|
|
|
— |
|
Cash and
restricted cash in the statement of financial
position |
|
$ |
127,558 |
|
|
$ |
188,043 |
|
|
$ |
216,647 |
|
|
|
$ |
127,558 |
|
|
$ |
216,647 |
|
Adjusted EBITDA
($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 * |
|
December 31, 2019 |
|
December 31, 2018 * |
(Loss) profit
attributable to the parent |
|
$ |
(74,506 |
) |
|
$ |
(140,524 |
) |
|
$ |
(59,212 |
) |
|
$ |
(282,683 |
) |
|
$ |
43,661 |
|
(Loss) profit for the period
from discontinued operations |
|
|
(1,092 |
) |
|
|
(76,911 |
) |
|
|
(4,392 |
) |
|
|
(81,357 |
) |
|
|
(9,463 |
) |
Loss (profit) attributable to
non-controlling interest |
|
|
(1,240 |
) |
|
|
385 |
|
|
|
(14,943 |
) |
|
|
(5,414 |
) |
|
|
(19,088 |
) |
Income tax (benefit)
expense |
|
|
(22,710 |
) |
|
|
(14,322 |
) |
|
|
(7,891 |
) |
|
|
(50,132 |
) |
|
|
20,459 |
|
Net finance expense |
|
|
16,496 |
|
|
|
16,491 |
|
|
|
13,915 |
|
|
|
61,857 |
|
|
|
52,207 |
|
Financial derivatives loss
(gain) |
|
|
1,153 |
|
|
|
(2,913 |
) |
|
|
(1,383 |
) |
|
|
(2,729 |
) |
|
|
(2,838 |
) |
Exchange differences |
|
|
(4,341 |
) |
|
|
5,083 |
|
|
|
3,086 |
|
|
|
(2,859 |
) |
|
|
14,136 |
|
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
30,016 |
|
|
|
29,591 |
|
|
|
28,345 |
|
|
|
120,181 |
|
|
|
113,837 |
|
EBITDA |
|
|
(56,224 |
) |
|
|
(183,120 |
) |
|
|
(42,475 |
) |
|
|
(243,136 |
) |
|
|
212,911 |
|
Impairment |
|
|
456 |
|
|
|
174,008 |
|
|
|
65,300 |
|
|
|
174,464 |
|
|
|
65,300 |
|
Revaluation of biological
assets |
|
|
(550 |
) |
|
|
1,080 |
|
|
|
7,615 |
|
|
|
530 |
|
|
|
7,615 |
|
Contract termination
costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,260 |
|
|
|
— |
|
Restructuring and termination
costs |
|
|
3,000 |
|
|
|
— |
|
|
|
— |
|
|
|
5,894 |
|
|
|
— |
|
Energy: France |
|
|
9,682 |
|
|
|
— |
|
|
|
— |
|
|
|
9,682 |
|
|
|
— |
|
Energy: South Africa |
|
|
3,645 |
|
|
|
— |
|
|
|
— |
|
|
|
3,645 |
|
|
|
— |
|
Staff Costs: South
Africa |
|
|
327 |
|
|
|
— |
|
|
|
— |
|
|
|
327 |
|
|
|
— |
|
Other Idling Costs |
|
|
1,532 |
|
|
|
— |
|
|
|
— |
|
|
|
1,532 |
|
|
|
— |
|
(Loss)profit on disposal of
non-core businesses |
|
|
— |
|
|
|
822 |
|
|
|
(11,747 |
) |
|
|
822 |
|
|
|
(11,747 |
) |
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
4,491 |
|
|
|
— |
|
|
|
(40,142 |
) |
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,886 |
) |
Adjusted
EBITDA |
|
$ |
(38,132 |
) |
|
$ |
(7,210 |
) |
|
$ |
23,184 |
|
|
$ |
(36,980 |
) |
|
$ |
230,051 |
|
Adjusted profit attributable to
Ferroglobe ($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 * |
|
December 31, 2019 |
|
December 31, 2018 * |
(Loss) profit
attributable to the parent |
|
$ |
(74,506 |
) |
|
$ |
(140,524 |
) |
|
$ |
(59,212 |
) |
|
$ |
(282,683 |
) |
|
$ |
43,661 |
|
Tax rate adjustment |
|
|
9,145 |
|
|
|
59,717 |
|
|
|
19,769 |
|
|
|
84,136 |
|
|
|
9,077 |
|
Impairment |
|
|
310 |
|
|
|
118,325 |
|
|
|
44,404 |
|
|
|
118,636 |
|
|
|
44,404 |
|
Revaluation of biological assets |
|
|
(374 |
) |
|
|
734 |
|
|
|
5,178 |
|
|
|
360 |
|
|
|
5,178 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,297 |
|
|
|
— |
|
Restructuring and termination costs |
|
|
2,040 |
|
|
|
— |
|
|
|
— |
|
|
|
4,008 |
|
|
|
— |
|
Energy: France |
|
|
6,584 |
|
|
|
— |
|
|
|
— |
|
|
|
6,584 |
|
|
|
— |
|
Energy: South Africa |
|
|
2,479 |
|
|
|
— |
|
|
|
— |
|
|
|
2,479 |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
222 |
|
|
|
— |
|
|
|
— |
|
|
|
222 |
|
|
|
— |
|
Other Idling Costs |
|
|
1,042 |
|
|
|
— |
|
|
|
— |
|
|
|
1,042 |
|
|
|
— |
|
(Loss) profit on disposal of non-core businesses |
|
|
(743 |
) |
|
|
(54,337 |
) |
|
|
(7,988 |
) |
|
|
(55,079 |
) |
|
|
(7,988 |
) |
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
3,054 |
|
|
|
— |
|
|
|
(27,297 |
) |
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,642 |
) |
Adjusted
(loss) profit attributable to the parent |
|
$ |
(53,801 |
) |
|
$ |
(16,085 |
) |
|
$ |
5,205 |
|
|
$ |
(113,998 |
) |
|
$ |
64,392 |
|
Adjusted diluted profit per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
|
December 31, 2019 |
|
September 30, 2019 |
|
December 31, 2018 * |
|
December 31, 2019 |
|
December 31, 2018 * |
Diluted (loss)
profit per ordinary share |
|
$ |
(0.44 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.34 |
) |
|
$ |
(1.67 |
) |
|
$ |
0.25 |
|
Tax rate adjustment |
|
|
0.05 |
|
|
|
0.35 |
|
|
|
0.11 |
|
|
|
0.50 |
|
|
|
0.05 |
|
Impairment |
|
|
0.00 |
|
|
|
0.70 |
|
|
|
0.26 |
|
|
|
0.70 |
|
|
|
0.26 |
|
Revaluation of biological assets |
|
|
(0.00 |
) |
|
|
0.00 |
|
|
|
0.03 |
|
|
|
0.00 |
|
|
|
0.03 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Restructuring and termination costs |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
Energy: France |
|
|
0.04 |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
|
— |
|
Energy: South Africa |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
0.00 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Other Idling Costs |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
(Loss) profit on disposal of non-core businesses |
|
|
(0.00 |
) |
|
|
(0.32 |
) |
|
|
(0.05 |
) |
|
|
(0.33 |
) |
|
|
(0.05 |
) |
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
(0.16 |
) |
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.02 |
) |
Adjusted
diluted (loss) profit per ordinary share |
|
$ |
(0.32 |
) |
|
$ |
(0.10 |
) |
|
$ |
0.03 |
|
|
$ |
(0.68 |
) |
|
$ |
0.36 |
|
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Sep 2023 to Sep 2024