Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the
“Parent”), a leading producer globally of silicon metal,
silicon-based and manganese-based specialty alloys and other
ferroalloys, today announced results for the first quarter of 2020.
Q1 2020 Earnings
Highlights
In Q1 2020, Ferroglobe posted a net loss of
$(49.1) million, or $(0.28) per share on a fully diluted basis. On
an adjusted basis, the Q1 2020 net loss was $(37.7) million, or
$(0.22) per share on a fully diluted basis.
Q1 2020 reported EBITDA was $(20.2) million, up
from $(48.5) million in the prior quarter. On an adjusted basis, Q1
2020 EBITDA was $(17.6) million, up from Q4 2019 adjusted EBITDA of
$(30.4) million. The Company reported an adjusted EBITDA margin of
-5.7% for Q1 2020, compared to an adjusted EBITDA margin of -8.1%
for Q4 2019. Improved margins due to strong drive in reducing the
cost of raw materials.
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Quarter Ended |
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Quarter Ended |
|
Quarter Ended |
|
Year Ended |
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$,000
(unaudited) |
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March 31, 2020 |
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December 31, 2019 |
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March 31, 2019* |
|
December 31, 2019 |
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Sales |
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$ |
311,223 |
|
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$ |
376,607 |
|
|
$ |
447,391 |
|
|
$ |
1,615,222 |
|
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Net (loss) profit |
|
$ |
(49,057 |
) |
|
$ |
(73,290 |
) |
|
$ |
(28,554 |
) |
|
$ |
(285,640 |
) |
|
Diluted EPS |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.66 |
) |
|
Adjusted net (loss) income
attributable to the parent |
|
$ |
(37,714 |
) |
|
$ |
(45,613 |
) |
|
$ |
(21,894 |
) |
|
$ |
(105,811 |
) |
|
Adjusted diluted EPS |
|
$ |
(0.22 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.64 |
) |
|
Adjusted EBITDA |
|
$ |
(17,616 |
) |
|
$ |
(30,389 |
) |
|
$ |
3,327 |
|
|
$ |
(29,236 |
) |
|
Adjusted EBITDA margin |
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-5.7% |
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-8.1% |
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0.7% |
|
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-1.8% |
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|
*Results for prior periods have been restated to
reflect the impact of the profit(loss) from discontinued operations
associated with the sale of former subsidiary FerroAtlántica
S.A.U., the owner of hydroelectric assets in Spain and one
ferroalloys manufacturing plant.
Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “I am pleased with the team’s execution given
the challenges across our organization resulting from the COVID-19
pandemic. First and foremost, we took extreme measures to ensure
the health and safety of our employees globally, and I am proud to
report that the quick decisions and actions of the team have
resulted in healthy worksites and enabled us to operate with
minimal disruption,” Dr. Levi added, “The improvement in our
quarterly results shows the effectiveness of the decisive actions
we have taken to manage the business operationally and
financially. These efforts will be on-going as we seek to
adapt to the lingering uncertainties created by the pandemic across
our value chain. In addition to near term actions, we
continue to make progress in identifying a broader set of strategic
initiatives which will drive value creation for our
stakeholders.”
Cash Flow and Balance
Sheet
Cash generated from operations during Q1 2020
was $89.6 million, with working capital positively impacted by
a decrease in inventories and trade receivables, offset by a
decrease in payables. Working capital decreased from $474 million
as of December 31, 2019 to $348 million at March 31, 2020.
Gross debt was $443 million as of March 31,
2020, down from $481 million as of December 31, 2019, primarily as
a result of repayments of principal amounts related to the
asset-based revolving credit facility amounting $20.4 million, the
reduction of the senior loan in the securization program amounting
$24.5 million and payment of the interest on the senior unsecured
notes on March 1, 2020.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “The operational adjustments at year end were
in anticipation of continued demand weakness into 2020.
During the first quarter our sales declined 17% compared to the
prior quarter, reflecting the impact of the industry
downturn. However, even in this difficult operating
environment, we were able to improve our cost structure, generate
cash from operations, and reduce our debt. These results were
driven by the successful execution of cost cutting initiatives at
the plant and corporate overhead levels, and emphasis on
right-sizing the business in order to optimize our global
footprint. While many uncertainties remain as a result of
both the cyclical downturn and the COVID-19 pandemic, we continue
our effort to find additional areas of cost reduction to improve
our financial performance, all with an eye towards returning to
profitability.”
Recent
developments
On February 6, 2020, the Company entered into an
amended and restated accounts receivables securitization program
via which trade receivables generated by certain of the Company’s
subsidiaries in Spain and France are financed both directly through
the existing Irish special purpose vehicle (“SPV”) and indirectly
through a French fonds commun de titrisation (“FCT”). The
incorporation of the FCT into the program has allowed for the sale
of certain Euro-denominated receivables that were not eligible
under the previous structure and increased the available
funding.
Subsequent to entering into the amended program,
the Company has repaid $24.5 million of senior loans in order to
optimise the level of borrowings of the SPV relative to the value
of receivables in the securitization. The Company may request
additional senior loans up to the maximum commitment when
needed.
COVID-19
Since January 2020, the COVID-19 pandemic has
spread to various jurisdictions where the Company does business.
The Company has been monitoring the evolving situation, and
consequent emerging risk. Among other steps, the Company has
implemented a coronavirus crisis management team, which has been
meeting regularly to ensure the Company and its subsidiaries take
appropriate action to protect all employees and ensure business
continuity.
While it is difficult to forecast the impacts of
the COVID-19 pandemic, at the present time the Company’s day-to-day
operations continue without being materially affected. The Company
has evaluated, and will continue to evaluate, how evolving demand
from its customer base and sales price evolution stand to affect
the Company’s business and results in the next twelve months.
Subsequent
events
On June 8, 2020, the Company announced the
appointment of Marta Amusategui as a Non-Executive Director,
effective June 12, 2020.
Discussion of First Quarter 2020
Results
Sales
Sales for Q1 2020 were $311.2 million, a
decrease of 17.4% compared to $376.6 million in Q4 2019. For Q1
2020, total shipments were down 15.6% and the average selling price
was up 0.8% compared with Q4 2019.
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Quarter Ended |
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Quarter Ended |
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Quarter Ended |
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Year Ended |
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March 31, 2020 |
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December 31, 2019 |
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Change |
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March 31, 2019 |
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Change |
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December 31, 2019 |
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Shipments in
metric tons: |
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Silicon Metal |
|
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53,321 |
|
|
63,113 |
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-15.5 |
% |
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|
62,269 |
|
-14.4 |
% |
|
|
239,692 |
|
Silicon-based Alloys |
|
|
60,932 |
|
|
64,485 |
|
-5.5 |
% |
|
|
81,801 |
|
-25.5 |
% |
|
|
295,429 |
|
Manganese-based Alloys |
|
|
73,724 |
|
|
95,235 |
|
-22.6 |
% |
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103,669 |
|
-28.9 |
% |
|
|
392,456 |
|
Total shipments* |
|
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187,977 |
|
|
222,833 |
|
-15.6 |
% |
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247,739 |
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-24.1 |
% |
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927,577 |
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Average
selling price ($/MT): |
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Silicon Metal |
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$ |
2,212 |
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$ |
2,164 |
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2.2 |
% |
|
$ |
2,358 |
|
-6.2 |
% |
|
$ |
2,252 |
|
Silicon-based Alloys |
|
$ |
1,474 |
|
$ |
1,424 |
|
3.5 |
% |
|
$ |
1,669 |
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-11.7 |
% |
|
$ |
1,547 |
|
Manganese-based Alloys |
|
$ |
973 |
|
$ |
1,054 |
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-7.7 |
% |
|
$ |
1,172 |
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-17.0 |
% |
|
$ |
1,140 |
|
Total* |
|
$ |
1,487 |
|
$ |
1,475 |
|
0.8 |
% |
|
$ |
1,634 |
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-9.0 |
% |
|
$ |
1,557 |
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Average
selling price ($/lb.): |
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Silicon Metal |
|
$ |
1.00 |
|
$ |
0.98 |
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2.2 |
% |
|
$ |
1.07 |
|
-6.2 |
% |
|
$ |
1.02 |
|
Silicon-based Alloys |
|
$ |
0.67 |
|
$ |
0.65 |
|
3.5 |
% |
|
$ |
0.76 |
|
-11.7 |
% |
|
$ |
0.70 |
|
Manganese-based Alloys |
|
$ |
0.44 |
|
$ |
0.48 |
|
-7.7 |
% |
|
$ |
0.53 |
|
-17.0 |
% |
|
$ |
0.52 |
|
Total* |
|
$ |
0.67 |
|
$ |
0.67 |
|
0.8 |
% |
|
$ |
0.74 |
|
-9.0 |
% |
|
$ |
0.71 |
|
* Excludes by-products and other
Sales Prices & Volumes By
Product
During Q1 2020, total product average selling
prices increased by 0.8% versus Q4 2019. Q1 average selling prices
of silicon metal increased 2.2%, silicon-based alloys prices
increased 3.5%, and manganese-based alloys prices decreased
7.7%.
Sales volumes in Q1 declined by 15.6% versus the
prior quarter. Q1 sales volumes of silicon metal decreased 15.5%,
silicon-based alloys decreased 5.5%, and manganese-based alloys
decreased 22.6% versus Q4 2019.
Reduced activity due to the temporary shutdown
of some plants in France, Norway and Spain.
Cost of
Sales
Cost of sales was $243.4 million in Q1 2020, a
decrease from $314.9 million in the prior quarter. Cost of sales as
a percentage of sales decreased to 78.2% in Q1 2020 versus 83,6%
for Q4 2019, linked primarily to product mix, decrease in costs
associated with implementing the temporary curtailments to our
operations, reduction in inventory write downs across our product
portfolio and savings related to raw materials.
Other Operating
Expenses
Other operating expenses was $40.1 million in Q1
2020, a decrease from $58.8 million in the prior quarter. This
decrease is primarily attributable to a decrease in commercial
expenses linked to less sales volume. Additionally, Q4 2019 was
negatively impacted by non recurrent costs associated with the
energy contracts at plants in Europe temporarily idled.
Net Loss Attributable to the
Parent
In Q1 2020, net loss attributable to the Parent
was $47.9 million, or $(0,28) per diluted share, compared to a net
loss attributable to the Parent of $72,4 million, or $(0,43) per
diluted share in Q4 2019.
Adjusted
EBITDA
In Q1 2020, adjusted EBITDA was $(17.6) million,
or -5.7% of sales, compared to adjusted EBITDA of $(30.4) million,
or -8.1% of sales in Q4 2019, primarily due to higher pricing and
less costs incurred in Q1 2020.
Conference
Call
Ferroglobe management will review the first
quarter during a conference call at 9:00 a.m. Eastern Time on
June 9, 2020.
The dial-in number for participants in the
United States is 877‑293‑5491 (conference ID 7299897).
International callers should dial +1 914‑495‑8526 (conference ID
7299897). 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/tvypsrbz.
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)
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|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019* |
|
December 31, 2019 |
Sales |
|
$ |
311,223 |
|
|
$ |
376,607 |
|
|
$ |
447,391 |
|
|
$ |
1,615,222 |
|
Cost of sales |
|
|
(243,360 |
) |
|
|
(314,905 |
) |
|
|
(329,368 |
) |
|
|
(1,214,397 |
) |
Other operating income |
|
|
7,768 |
|
|
|
12,446 |
|
|
|
14,021 |
|
|
|
54,213 |
|
Staff costs |
|
|
(55,097 |
) |
|
|
(63,378 |
) |
|
|
(74,263 |
) |
|
|
(285,029 |
) |
Other operating expense |
|
|
(40,067 |
) |
|
|
(58,804 |
) |
|
|
(53,917 |
) |
|
|
(225,705 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
(28,668 |
) |
|
|
(30,029 |
) |
|
|
(30,370 |
) |
|
|
(120,194 |
) |
Impairment losses |
|
|
— |
|
|
|
(547 |
) |
|
|
(140 |
) |
|
|
(175,899 |
) |
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other gain (loss) |
|
|
(671 |
) |
|
|
100 |
|
|
|
(397 |
) |
|
|
(3,797 |
) |
Operating (loss) profit |
|
|
(48,872 |
) |
|
|
(78,510 |
) |
|
|
(27,043 |
) |
|
|
(355,586 |
) |
Net finance expense |
|
|
(16,484 |
) |
|
|
(16,484 |
) |
|
|
(13,823 |
) |
|
|
(61,845 |
) |
Financial derivatives (loss) gain |
|
|
3,168 |
|
|
|
(1,153 |
) |
|
|
1,264 |
|
|
|
2,729 |
|
Exchange differences |
|
|
2,436 |
|
|
|
4,366 |
|
|
|
(1,479 |
) |
|
|
2,884 |
|
(Loss) profit before tax |
|
|
(59,753 |
) |
|
|
(91,781 |
) |
|
|
(41,081 |
) |
|
|
(411,818 |
) |
Income tax benefit (expense) |
|
|
10,696 |
|
|
|
14,119 |
|
|
|
8,210 |
|
|
|
41,541 |
|
(Loss) profit for the period from continuing
operations |
|
|
(49,057 |
) |
|
|
(77,662 |
) |
|
|
(32,871 |
) |
|
|
(370,277 |
) |
Profit for the period from discontinued operations |
|
|
— |
|
|
|
4,372 |
|
|
|
4,317 |
|
|
|
84,637 |
|
(Loss) profit for the
period |
|
|
(49,057 |
) |
|
|
(73,290 |
) |
|
|
(28,554 |
) |
|
|
(285,640 |
) |
Loss (profit) attributable to non-controlling interest |
|
|
1,159 |
|
|
|
866 |
|
|
|
1,724 |
|
|
|
5,039 |
|
(Loss) profit attributable to the
parent |
|
$ |
(47,898 |
) |
|
$ |
(72,424 |
) |
|
$ |
(26,830 |
) |
|
$ |
(280,601 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
(20,204 |
) |
|
$ |
(48,481 |
) |
|
$ |
3,327 |
|
|
$ |
(235,392 |
) |
Adjusted EBITDA |
|
$ |
(17,617 |
) |
|
$ |
(30,390 |
) |
|
$ |
3,327 |
|
|
$ |
(29,236 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,249 |
|
|
|
169,182 |
|
|
|
169,123 |
|
|
|
169,153 |
|
Diluted |
|
|
169,249 |
|
|
|
169,182 |
|
|
|
169,123 |
|
|
|
169,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.66 |
) |
Diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.66 |
) |
*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 hydroelectric assets in Spain
and one ferroalloys manufacturing plant.
Ferroglobe PLC and
SubsidiariesUnaudited Condensed
Consolidated Statement of Financial
Position(in thousands of U.S.
dollars)
|
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|
March 31, |
|
December 31, |
|
March 31, |
|
|
2020 |
|
2019 |
|
2019 |
ASSETS |
Non-current assets |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
|
29,702 |
|
$ |
29,702 |
|
$ |
203,472 |
Other intangible assets |
|
|
|
50,373 |
|
|
51,267 |
|
|
69,399 |
Property, plant and equipment |
|
|
|
689,383 |
|
|
740,906 |
|
|
890,436 |
Other non-current financial assets |
|
|
|
5,683 |
|
|
2,618 |
|
|
54,979 |
Deferred tax assets |
|
|
|
65,360 |
|
|
59,551 |
|
|
7,135 |
Non-current receivables from related parties |
|
|
|
2,191 |
|
|
2,247 |
|
|
2,247 |
Other non-current assets |
|
|
|
1,520 |
|
|
1,597 |
|
|
10,435 |
Non-current restricted cash and cash equivalents |
|
|
|
28,173 |
|
|
28,323 |
|
|
— |
Total non-current assets |
|
|
|
872,385 |
|
|
916,211 |
|
|
1,238,103 |
Current assets |
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
287,258 |
|
|
354,121 |
|
|
451,753 |
Trade and other receivables |
|
|
|
216,970 |
|
|
309,064 |
|
|
127,992 |
Current receivables from related parties |
|
|
|
2,895 |
|
|
2,955 |
|
|
6,556 |
Current income tax assets |
|
|
|
16,298 |
|
|
27,930 |
|
|
26,855 |
Other current financial assets |
|
|
|
5,062 |
|
|
5,544 |
|
|
2,191 |
Other current assets |
|
|
|
16,113 |
|
|
23,676 |
|
|
13,721 |
Cash and cash equivalents * |
|
|
|
116,316 |
|
|
94,852 |
|
|
216,627 |
Total current assets |
|
|
|
660,912 |
|
|
818,142 |
|
|
845,695 |
Total assets |
|
$ |
|
1,533,297 |
|
$ |
1,734,353 |
|
$ |
2,083,798 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
|
525,117 |
|
$ |
602,297 |
|
$ |
855,099 |
Non-current liabilities |
|
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
|
9,081 |
|
|
1,253 |
|
|
11,676 |
Provisions |
|
|
|
79,135 |
|
|
84,852 |
|
|
76,613 |
Bank borrowings |
|
|
|
111,583 |
|
|
144,388 |
|
|
131,366 |
Lease liabilities |
|
|
|
14,642 |
|
|
16,972 |
|
|
66,992 |
Debt instruments |
|
|
|
344,639 |
|
|
344,014 |
|
|
342,222 |
Other financial liabilities |
|
|
|
32,702 |
|
|
43,157 |
|
|
27,109 |
Other non-current liabilities |
|
|
|
26,817 |
|
|
25,906 |
|
|
25,080 |
Deferred tax liabilities |
|
|
|
69,084 |
|
|
74,057 |
|
|
61,887 |
Total non-current
liabilities |
|
|
|
687,683 |
|
|
734,599 |
|
|
742,945 |
Current liabilities |
|
|
|
|
|
|
|
|
|
|
Provisions |
|
|
|
34,853 |
|
|
46,091 |
|
|
47,619 |
Bank borrowings |
|
|
|
1,369 |
|
|
14,611 |
|
|
19,100 |
Lease liabilities |
|
|
|
8,932 |
|
|
8,900 |
|
|
20,616 |
Debt instruments |
|
|
|
2,820 |
|
|
10,937 |
|
|
2,734 |
Other financial liabilities |
|
|
|
23,101 |
|
|
23,382 |
|
|
51,618 |
Payables to related parties |
|
|
|
4,572 |
|
|
4,830 |
|
|
12,199 |
Trade and other payables |
|
|
|
156,634 |
|
|
189,229 |
|
|
228,649 |
Current income tax liabilities |
|
|
|
1,485 |
|
|
3,048 |
|
|
4,369 |
Other current liabilities |
|
|
|
86,731 |
|
|
96,429 |
|
|
98,850 |
Liabilities associated with assets classified as held for sale |
|
|
|
— |
|
|
— |
|
|
— |
Total current
liabilities |
|
|
|
320,497 |
|
|
397,457 |
|
|
485,754 |
Total equity and
liabilities |
|
$ |
|
1,533,297 |
|
$ |
1,734,353 |
|
$ |
2,083,798 |
*Cash and cash equivalents at March 31, 2020
includes the cash balance of the A/R securitization program of
$38,745 ($38,778 and $nil at December 31, 2019 and March 31, 2019,
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 |
|
|
March 31, 2020 |
|
December 31, 2019* |
|
March 31, 2019* |
|
|
December 31, 2019* |
Cash flows
from operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
for the period |
|
$ |
(49,057 |
) |
|
$ |
(73,289 |
) |
|
$ |
(28,554 |
) |
|
|
$ |
(285,640 |
) |
Adjustments to
reconcile net (loss) profit to net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
|
(10,696 |
) |
|
|
(14,120 |
) |
|
|
(6,704 |
) |
|
|
|
(40,528 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
28,668 |
|
|
|
30,029 |
|
|
|
32,077 |
|
|
|
|
123,024 |
|
Net finance expense |
|
|
16,484 |
|
|
|
16,485 |
|
|
|
14,756 |
|
|
|
|
68,279 |
|
Financial derivatives loss (gain) |
|
|
(3,168 |
) |
|
|
1,153 |
|
|
|
(1,264 |
) |
|
|
|
(2,729 |
) |
Exchange differences |
|
|
(2,436 |
) |
|
|
(4,366 |
) |
|
|
1,479 |
|
|
|
|
(2,884 |
) |
Impairment losses |
|
|
— |
|
|
|
546 |
|
|
|
140 |
|
|
|
|
175,899 |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
Gain on disposal of discontinued operation |
|
|
— |
|
|
|
(4,372 |
) |
|
|
— |
|
|
|
|
(85,101 |
) |
Share-based compensation |
|
|
722 |
|
|
|
1,599 |
|
|
|
1,332 |
|
|
|
|
4,879 |
|
Other adjustments |
|
|
671 |
|
|
|
(99 |
) |
|
|
397 |
|
|
|
|
3,797 |
|
Changes in
operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Increase) decrease in inventories |
|
|
51,577 |
|
|
|
132,493 |
|
|
|
35 |
|
|
|
|
91,531 |
|
(Increase) decrease in trade receivables |
|
|
83,832 |
|
|
|
29,310 |
|
|
|
28,371 |
|
|
|
|
30,933 |
|
Increase (decrease) in trade payables |
|
|
(25,504 |
) |
|
|
(51,152 |
) |
|
|
(22,967 |
) |
|
|
|
(63,187 |
) |
Other |
|
|
(11,598 |
) |
|
|
(24,448 |
) |
|
|
9,787 |
|
|
|
|
(45,878 |
) |
Income taxes paid |
|
|
10,119 |
|
|
|
(523 |
) |
|
|
(1,680 |
) |
|
|
|
(3,589 |
) |
Net cash
provided (used) by operating activities |
|
|
89,614 |
|
|
|
39,246 |
|
|
|
27,205 |
|
|
|
|
(31,194 |
) |
Cash flows
from investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
254 |
|
|
|
171 |
|
|
|
390 |
|
|
|
|
1,673 |
|
Payments due
to investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
9,088 |
|
Other intangible assets |
|
|
— |
|
|
|
— |
|
|
|
(134 |
) |
|
|
|
(184 |
) |
Property, plant and equipment |
|
|
(4,606 |
) |
|
|
(5,600 |
) |
|
|
(13,448 |
) |
|
|
|
(32,445 |
) |
Other |
|
|
— |
|
|
|
(621 |
) |
|
|
— |
|
|
|
|
(1,248 |
) |
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Disposal of subsidiaries |
|
|
— |
|
|
|
5,532 |
|
|
|
— |
|
|
|
|
176,590 |
|
Other non-current assets |
|
|
— |
|
|
|
8,668 |
|
|
|
— |
|
|
|
|
8,668 |
|
Other |
|
|
— |
|
|
|
352 |
|
|
|
1,759 |
|
|
|
|
3,768 |
|
Net cash
(used) provided by investing activities |
|
|
(4,352 |
) |
|
|
8,502 |
|
|
|
(11,433 |
) |
|
|
|
165,910 |
|
Cash flows
from financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
Payment for debt issuance
costs |
|
|
(1,576 |
) |
|
|
(12,319 |
) |
|
|
(705 |
) |
|
|
|
(15,117 |
) |
Repayment of hydro leases |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(55,352 |
) |
Repayment of other financial
liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
Increase/(decrease) in bank
borrowings: |
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
Borrowings |
|
|
— |
|
|
|
174,130 |
|
|
|
31,850 |
|
|
|
|
245,629 |
|
Payments |
|
|
(44,880 |
) |
|
|
(269,400 |
) |
|
|
(20,811 |
) |
|
|
|
(329,501 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
Other amounts paid due to
financing activities |
|
|
1,147 |
|
|
|
(4,363 |
) |
|
|
(5,708 |
) |
|
|
|
(26,631 |
) |
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
Interest paid |
|
|
(18,824 |
) |
|
|
(2,471 |
) |
|
|
(18,508 |
) |
|
|
|
(43,033 |
) |
Net cash
(used) provided by financing activities |
|
|
(64,133 |
) |
|
|
(114,423 |
) |
|
|
(13,882 |
) |
|
|
|
(224,005 |
) |
Total net cash
flows for the period |
|
|
21,129 |
|
|
|
(66,675 |
) |
|
|
1,890 |
|
|
|
|
(89,289 |
) |
Beginning balance of cash and cash equivalents |
|
|
123,175 |
|
|
|
188,043 |
|
|
|
216,647 |
|
|
|
|
216,647 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
185 |
|
|
|
1,807 |
|
|
|
(1,910 |
) |
|
|
|
(4,183 |
) |
Ending balance
of cash and cash equivalents |
|
$ |
144,489 |
|
|
$ |
123,175 |
|
|
$ |
216,627 |
|
|
|
$ |
123,175 |
|
Cash from continuing
operations |
|
|
116,316 |
|
|
|
94,852 |
|
|
|
216,627 |
|
|
|
|
94,852 |
|
Non-current restricted cash
and cash equivalents |
|
|
28,173 |
|
|
|
28,323 |
|
|
|
— |
|
|
|
|
28,323 |
|
Cash and
restricted cash in the statement of financial
position |
|
$ |
144,489 |
|
|
$ |
123,175 |
|
|
$ |
216,627 |
|
|
|
$ |
123,175 |
|
* While in previous periods Ferroglobe presented
interest paid as cash flows from operating activities, management
deems interest paid as among activities that alter the borrowing
structure of the Company and therefore most appropriately presented
as among financing activities. This change allows for a more fair
presentation of cash flow to users of the financial statements.
Previous periods have been restated in order to show interest paid
as net cash used in financing activities.
Adjusted EBITDA
($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 * |
|
December 31, 2019 |
|
(Loss) profit attributable to the
parent |
|
$ |
(47,898 |
) |
|
$ |
(72,424 |
) |
|
$ |
(26,830 |
) |
|
$ |
(280,601 |
) |
|
(Loss) profit for the period
from discontinued operations |
|
|
— |
|
|
|
(4,372 |
) |
|
|
(4,317 |
) |
|
|
(84,637 |
) |
|
Loss (profit) attributable to
non-controlling interest |
|
|
(1,159 |
) |
|
|
(866 |
) |
|
|
(1,724 |
) |
|
|
(5,039 |
) |
|
Income tax (benefit)
expense |
|
|
(10,696 |
) |
|
|
(14,119 |
) |
|
|
(8,210 |
) |
|
|
(41,541 |
) |
|
Net finance expense |
|
|
16,484 |
|
|
|
16,484 |
|
|
|
13,823 |
|
|
|
61,845 |
|
|
Financial derivatives loss
(gain) |
|
|
(3,168 |
) |
|
|
1,153 |
|
|
|
(1,264 |
) |
|
|
(2,729 |
) |
|
Exchange differences |
|
|
(2,436 |
) |
|
|
(4,366 |
) |
|
|
1,479 |
|
|
|
(2,884 |
) |
|
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
28,668 |
|
|
|
30,029 |
|
|
|
30,370 |
|
|
|
120,194 |
|
|
EBITDA |
|
|
(20,205 |
) |
|
|
(48,481 |
) |
|
|
3,327 |
|
|
|
(235,392 |
) |
|
Impairment |
|
|
— |
|
|
|
456 |
|
|
|
— |
|
|
|
174,464 |
|
|
Revaluation of biological
assets |
|
|
— |
|
|
|
(550 |
) |
|
|
— |
|
|
|
530 |
|
|
Contract termination
costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,260 |
|
|
Restructuring and termination
costs |
|
|
— |
|
|
|
3,000 |
|
|
|
— |
|
|
|
5,894 |
|
|
Energy: France |
|
|
125 |
|
|
|
9,682 |
|
|
|
— |
|
|
|
9,682 |
|
|
Energy: South Africa |
|
|
— |
|
|
|
3,645 |
|
|
|
— |
|
|
|
3,645 |
|
|
Staff Costs: South Africa |
|
|
155 |
|
|
|
327 |
|
|
|
— |
|
|
|
327 |
|
|
Other Idling Costs |
|
|
2,308 |
|
|
|
1,532 |
|
|
|
— |
|
|
|
1,532 |
|
|
(Loss)profit on disposal of
non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
822 |
|
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
EBITDA |
|
$ |
(17,617 |
) |
|
$ |
(30,389 |
) |
|
$ |
3,327 |
|
|
$ |
(29,236 |
) |
|
*Throughout the results, 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 hydroelectric assets in Spain and
one ferroalloys manufacturing plant.
Adjusted profit attributable to
Ferroglobe ($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|
December 31, 2019 |
|
(Loss) profit attributable to the
parent |
|
$ |
(47,898 |
) |
|
$ |
(72,424 |
) |
|
$ |
(26,830 |
) |
|
$ |
(280,601 |
) |
|
Tax rate adjustment |
|
|
8,425 |
|
|
|
15,251 |
|
|
|
4,936 |
|
|
|
90,241 |
|
|
Impairment |
|
|
— |
|
|
|
310 |
|
|
|
— |
|
|
|
118,636 |
|
|
Revaluation of biological assets |
|
|
— |
|
|
|
(374 |
) |
|
|
— |
|
|
|
360 |
|
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,297 |
|
|
Restructuring and termination costs |
|
|
— |
|
|
|
2,040 |
|
|
|
— |
|
|
|
4,008 |
|
|
Energy: France |
|
|
85 |
|
|
|
6,584 |
|
|
|
— |
|
|
|
6,584 |
|
|
Energy: South Africa |
|
|
— |
|
|
|
2,479 |
|
|
|
— |
|
|
|
2,479 |
|
|
Staff Costs: South Africa |
|
|
105 |
|
|
|
222 |
|
|
|
— |
|
|
|
222 |
|
|
Other Idling Costs |
|
|
1,569 |
|
|
|
1,042 |
|
|
|
— |
|
|
|
1,042 |
|
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
(743 |
) |
|
|
— |
|
|
|
(55,079 |
) |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
(loss) profit attributable to the parent |
|
$ |
(37,714 |
) |
|
$ |
(45,613 |
) |
|
$ |
(21,894 |
) |
|
$ |
(105,811 |
) |
|
Adjusted diluted profit per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
|
|
March 31, 2020 |
|
December 31, 2019 |
|
March 31, 2019 |
|
December 31, 2019 |
|
Diluted (loss) profit per ordinary
share |
|
$ |
(0.28 |
) |
|
$ |
(0.43 |
) |
|
$ |
(0.16 |
) |
|
$ |
(1.66 |
) |
|
Tax rate adjustment |
|
|
0.05 |
|
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.53 |
|
|
Impairment |
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.70 |
|
|
Revaluation of biological assets |
|
|
— |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
0.00 |
|
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
|
Restructuring and termination costs |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.02 |
|
|
Energy: France |
|
|
0.00 |
|
|
|
0.04 |
|
|
|
— |
|
|
|
0.04 |
|
|
Energy: South Africa |
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
Staff Costs: South Africa |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
|
Other Idling Costs |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.01 |
|
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
(0.33 |
) |
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Share-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Adjusted
diluted (loss) profit per ordinary share |
|
$ |
(0.22 |
) |
|
$ |
(0.27 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.64 |
) |
|
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