TIDMGLBM
RNS Number : 0510T
Globe Specialty Metals, Inc
29 May 2009
Globe Specialty Metals, Inc. ("Globe" or the "Company")
Amendment to Announcement
This is an amendment to the Company's quarterly results announcement of 29 May
2009 (RNS Number - 9922S). The announcement only included a balance sheet and
not income statement, cashflow statement and supplemental information statement.
The balance sheet remains unchanged and a full updated announcement is set out
below.
Globe Specialty Metals Announces Third Quarter 2009 Results
New York, N.Y., May 29, 2009 - Globe Specialty Metals, Inc. (AIM: GLBM.L) (the
"Company") today announces results for the quarter and nine months ended March
31, 2009. Key points are as follows:
+-----+-----------------------------------------------------------------------------+
| - | Net sales for the quarter were $76.1 million, excluding deferred revenues, |
| | down 40% from the same period in the prior year. Net sales for the nine |
| | months increased 9% to $344.6 million, from the prior year, despite a 19% |
| | decline in shipments. |
+-----+-----------------------------------------------------------------------------+
+-----+-----------------------------------------------------------------------------+
| - | Adjusted EBITDA before one-time charges for the quarter, including |
| | approximately $5.0 million of deferred gross margin, discussed below, that |
| | is expected to be realized in the quarter ended June 30, 2009, was $17.6 |
| | million, a 35% decrease from the same period in the prior year. Adjusted |
| | EBITDA before one-time charges for the nine months, including the deferred |
| | gross margin, discussed below, that is expected to be realized in the |
| | quarter ended June 30, 2009, was a record $71.8 million, an increase of 39% |
| | from the same period in the prior year. |
+-----+-----------------------------------------------------------------------------+
| | |
+-----+-----------------------------------------------------------------------------+
| - | Cash flow from operations for the quarter and nine months were $7.5 million |
| | and $31.6 million, respectively, compared to prior year results of $8.7 |
| | million and $4.7 million, respectively. |
+-----+-----------------------------------------------------------------------------+
| | |
+-----+-----------------------------------------------------------------------------+
The Company posted third quarter net income of $0.9 million, compared to net
income of $10.6 million in the same period of the prior year. Excluding one-time
charges and including the deferred gross margin, which is expected to be
realized in the quarter ended June 30, 2009, the Company would have recorded net
income of $6.5 million. The net loss for the nine months was $43.6 million,
compared to net income of $18.2 million in the same period of the prior year.
Excluding one-time charges and including the deferred gross margin that is
expected to be realized in the quarter ended June 30, 2009, the Company would
have had net income of $31.5 million for the nine months, a 73% increase over
the same period in the prior year.
Capital expenditures were $46.5 million for the nine months and are largely
comprised of the expansion and refurbishment of the Niagara Falls plant and the
expansion of the Company's electrode manufacturing facility in China. These
projects are now largely complete and, going forward, total capital expenditures
are expected to be less than $20 million annually.
CEO Jeff Bradley said "Despite the dramatic downturn in the economy and the
unprecedented drop in aluminum and steel manufacturing this Company continues to
be profitable and generate positive and stable operating cash flow. We will make
additional permanent cost reductions and continue to rationalize our expense
base to match current demand levels. We began to see the positive impact from
these initiatives in the March quarter and expect results to further improve in
the June quarter."
Net income for the third quarter includes $3.0 million in pre-tax one-time
charges and excludes approximately $5.0 million of pre-tax deferred gross margin
as follows:
+-----+--------------------------------------------------------------------------+
| - | A $1.4 million restructuring charge for severance and other |
| | termination benefits related to headcount reductions taken in most of |
| | the Company's facilities. Additional headcount reductions are expected |
| | in the quarter ended June 30, 2009. |
| | |
+-----+--------------------------------------------------------------------------+
| - | A $1.6 million inventory write-down, primarily representing |
| | lower-of-cost-or-market adjustments at the Company's electrode |
| | facility in China and its Solsil business unit. These write-downs |
| | follow the $3.5 million reduction taken in the Company's second fiscal |
| | quarter. No further inventory write-downs are expected. |
| | |
+-----+--------------------------------------------------------------------------+
| - | Approximately $5.0 million of deferred gross margin is not |
| | included in the quarter ended March 31, 2009 as a result |
| | of the sales not complying with the Company's accounting |
| | policy for revenue recognition. We expect to record this |
| | deferred gross margin in the quarter ended June 30, 2009. |
| | |
+-----+--------------------------------------------------------------------------+
About Globe Specialty Metals
Globe Specialty Metals, Inc. is among the world's largest producers of silicon
metal and silicon based specialty alloys, critical ingredients in a host of
industrial and consumer products with growing markets. Customers include major
silicone chemical, aluminum and steel manufacturers, auto companies and their
suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and
computer chips, and concrete producers. The Company is headquartered in New York
City. For further information please visit our web site at www.glbsm.com.
Forward-Looking Statements
This release may contain "forward-looking statements" within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking
statements can be identified by words such as "anticipates," "intends," "
plans," "seeks," "believes," "estimates," "expects" and similar
references to future periods, or by the inclusion of forecasts or projections.
Forward-looking statements are based on the current expectations and assumptions
of Globe Specialty Metals, Inc. (the "Company") regarding its business,
financial condition, the economy and other future conditions.
Because forward-looking statements relate to the future, by their nature, they
are subject to inherent uncertainties, risks and changes in circumstances that
are difficult to predict. The Company's actual results may differ materially
from those contemplated by the forward-looking statements. The Company cautions
you therefore that you should not rely on any of these forward-looking
statements as statements of historical fact or as guarantees or assurances of
future performance. Important factors that could cause actual results to differ
materially from those in the forward-looking statements include regional,
national or global political, economic, business, competitive, market and
regulatory conditions including, among others, changes in metals prices;
increases in the cost of raw materials or energy; competition in the metals and
foundry industries; environmental and regulatory risks; ability to identify
liabilities associated with acquired properties prior to their acquisition;
ability to manage price and operational risks including industrial accidents and
natural disasters; ability to manage foreign operations; changes in technology;
and ability to acquire or renew permits and approvals.
Any forward-looking statement made by the Company or management in this release
speaks only as of the date on which it or they make it. Factors or events that
could cause the Company's actual results to differ may emerge from time to time,
and it is not possible for the Company to predict all of them. The Company
undertakes no obligation to publicly update any forward-looking statement,
whether as a result of new information, future developments or otherwise, unless
otherwise required to do so by the London Stock Exchange AIM Market rules.
Adjusted EBITDA
Adjusted EBITDA and adjusted EBITDA before one-time charges are non-GAAP
measures.
We have included adjusted EBITDA and adjusted EBITDA before one-time charges to
provide supplemental measures of our performance which we believe are important
because they eliminate items that have less bearing on our current and future
operating performance and so highlight trends in our core business that may not
otherwise be apparent when relying solely on GAAP financial measures. Adjusted
EBITDA represents EBITDA as further adjusted by the removal of non-cash
share-based compensation costs and goodwill and intangible asset impairment
charges. Adjusted EBITDA before one-time charges represents adjusted EBITDA as
further adjusted for significant one-time charges which are of an unusual, and /
or non-recurring nature. A reconciliation of adjusted EBITDA to net (loss)
income and adjusted EBITDA before one-time charges to operating income (loss) is
provided in the attached financial statements.
Enquiries:
+--------------------------------------+--------------------------+
| Globe Specialty Metals, Inc. | +1 212 798 8122 |
| Jeff Bradley, Chief Executive | |
| Officer | |
| | |
+--------------------------------------+--------------------------+
| Mal Appelbaum, Chief Financial | +1 212 798 8123 |
| Officer | |
| | |
+--------------------------------------+--------------------------+
| Collins Stewart Europe Limited | +44 (0) 207 523 8350 |
| Mark Dickenson/Adam Cowen | |
| | |
+--------------------------------------+--------------------------+
+--+---+---+---+---+---+---+---+---+---+---+------+---+---+---+--+---+------+---+---+---+---------+---+---+--------+---+
| | GLOBE SPECIALTY METALS, INC. |
+------+---------------------------------------------------------------------------------------------------------------+
| | AND SUBSIDIARY COMPANIES |
+------+---------------------------------------------------------------------------------------------------------------+
| | Condensed Consolidated Balance Sheets |
+------+---------------------------------------------------------------------------------------------------------------+
| | (In thousands) |
+------+---------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+--+-------+-------+-------+-------+-------+------+-------+----------+------+-------+-------------+--------------------+
| | |
+------+---------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | March 31, | | December | | June |
| | | | | | | | | | | 31, | | 30, |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | 2009 | | 2008 | | 2008 |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | (Unaudited) | |(Unaudited) | | |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| Assets |
+------------------------------------------------------------------------------------------------------------------+
| Current assets: | | | | | | | | |
+--------------------------------------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | Cash and cash equivalents |$ | 45,022 | | 55,321 | | 73,994 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Restricted cash | | | - | | 3,580 | | - |
+------+----------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| | Accounts receivable, net of allowance for doubtful | | 30,724 | | 40,563 | | 53,801 |
| | accounts | | | | | | |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Inventories | | | | 77,000 | | 74,220 | | 63,568 |
+------+-------------------------------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | Prepaid expenses and other current assets | | 23,100 | | 23,241 | | 25,223 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | | | | | Total current assets | | 175,846 | | 196,925 | | 216,586 |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| Property, plant, and equipment, net | | 214,777 | | 209,998 | | 180,659 |
+-------------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| Goodwill | | | | | 53,068 | | 51,769 | | 107,257 |
+------------------------------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| Other intangible assets | | 3,157 | | 3,497 | | 16,884 |
+-------------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| Investments in unconsolidated affiliates | | 7,906 | | 8,194 | | 7,965 |
+-------------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| Deferred tax assets | | | 1,882 | | 1,590 | | 2,720 |
+-----------------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| Other assets | | | | 14,752 | | 14,338 | | 16,103 |
+--------------------------------------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | | | | | Total assets |$ | 471,388 | | 486,311 | | 548,174 |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | | | | | |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| Liabilities and Stockholders' Equity |
+------------------------------------------------------------------------------------------------------------------+
| Current liabilities: | | | | | | | |
+-----------------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| | Accounts payable |$ | 19,535 | | 34,546 | | 40,493 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Current portion of long-term debt | | 19,719 | | 17,899 | | 17,045 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Short-term debt | | 11,666 | | 15,066 | | 20,140 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Accrued expenses and other current liabilities | | 42,856 | | 25,808 | | 26,841 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | | | | | Total current | | 93,776 | | 93,319 | | 104,519 |
| | | | | | liabilities | | | | | | |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| Long-term liabilities: | | | | | | |
+-------------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Long-term debt | | | 38,510 | | 46,465 | | 52,020 |
+------+----------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| | Deferred tax liabilities | | 18,185 | | 17,340 | | 22,756 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Other long-term liabilities | | 10,437 | | 20,272 | | 22,642 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | | | | | Total liabilities | | 160,908 | | 177,396 | | 201,937 |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| Minority interest | | | 6,278 | | 7,179 | | 3,956 |
+-----------------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| Stockholders' equity: | | | | | | |
+-------------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Common stock | | | 6 | | 6 | | 6 |
+------+----------------------------------------------+-------+--+--------------+-------+-------------+---+------------+
| | Additional paid-in capital | | 301,674 | | 300,166 | | 296,137 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Retained earnings | | 3,022 | | 2,085 | | 46,641 |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Accumulated other comprehensive loss | | (496) | | (521) | | (503) |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | Treasury stock at cost | | (4) | | - | | - |
+------+------------------------------------------------------+--+--------------+-------+-------------+---+------------+
| | | | | | Total stockholders' | | 304,202 | | 301,736 | | 342,281 |
| | | | | | equity | | | | | | |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| | | | | | Total liabilities |$ | 471,388 | | 486,311 | | 548,174 |
| | | | | | and stockholders' | | | | | | |
| | | | | | equity | | | | | | |
+------+-------+-------+-------+-------+----------------------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | | | | | |
+------+-------+-------+-------+-------+--------------+-------+--+--------------+-------+-------------+---+------------+
| | | | | | | | | | | | | |
+--+---+---+---+---+---+---+---+---+---+---+------+---+---+---+--+---+------+---+---+---+---------+---+---+--------+---+
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| GLOBE SPECIALTY METALS, INC. |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| AND SUBSIDIARY COMPANIES |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| Condensed Consolidated Statements of Operations |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| (In thousands, except per share amounts) |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| (Unaudited) |
+-----------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | | | Nine Months Ended | | Three Months Ended |
+-----+-----+-----+-----------+-------+---------------+--+-----------------------------------+--+-----------------------------------------------------+
| | | | | | | | | March | | March 31, | | | March | | December | | March |
| | | | | | | | | 31, 2009 | | 2008 | | | 31, 2009 | | 31, 2008 | | 31, 2008 |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | | | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Net sales | | | | $ | 344,610 | | 316,751 | | $ | 76,146 | | 119,307 | | 125,915 |
+-----------------------------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Cost of goods sold | | | 257,714 | | 251,378 | | | 61,875 | | 90,118 | | 91,433 |
+-----------------------------------------------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Selling, general, and administrative expenses | | 48,475 | | 34,303 | | | 11,519 | | 21,507 | | 15,617 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Research and development | | 1,122 | | 407 | | | 246 | | 283 | | 303 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Restructuring charges | | 1,387 | | - | | | 1,387 | | - | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Goodwill and intangible asset impairment | | 69,704 | | - | | | 144 | | 69,560 | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | Operating (loss) income | | (33,792) | | 30,663 | | | 975 | | (62,161) | | 18,562 |
+-----+-----+-----+--------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Other income (expense): | | | | | | | | | | | |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Interest income | | | 630 | | 2,295 | | | 77 | | 150 | | 683 |
+-----+-----------------------------------------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Interest expense, net of capitalized interest | | (5,596) | | (7,598) | | | (1,427) | | (2,118) | | (2,909) |
+-----+--------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Foreign exchange (loss) gain | | (2,961) | | 24 | | | 465 | | (2,117) | | (1,126) |
+-----+--------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Other income | | | 2,368 | | 176 | | | 862 | | 662 | | 414 |
+-----+-----------------------------------------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | (Loss) income before provision for | | (39,351) | | 25,560 | | | 952 | | (65,584) | | 15,624 |
| | | | income taxes | | | | | | | | | | | |
+-----+-----+-----+--------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Provision for income taxes | | 7,290 | | 7,343 | | | 916 | | (2,328) | | 5,080 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | Net (loss) | | (46,641) | | 18,217 | | | 36 | | (63,256) | | 10,544 |
| | | | | | income before | | | | | | | | | | | |
| | | | | | minority | | | | | | | | | | | |
| | | | | | interest | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Losses attributable to minority interest, net of tax | | 3,022 | | 26 | | | 901 | | 1,735 | | 26 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | Net (loss) income |$ | (43,619) | | 18,243 | | $ | 937 | | (61,521) | | 10,570 |
+-----+-----+-----+--------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Weighted average shares outstanding: | | | | | | | | | | | |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Basic | | | | | | 63,820 | | 57,636 | | | 63,930 | | 63,455 | | 59,337 |
+-----+-----------+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Diluted | | | | | 63,820 | | 69,765 | | | 66,896 | | 63,455 | | 74,967 |
+-----+-----------------------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| (Loss) earnings per common share: | | | | | | | | | | | |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Basic | | | | |$ | (0.68) | | 0.32 | | $ | 0.01 | | (0.97) | | 0.18 |
+-----+-----------+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Diluted | | | | | (0.68) | | 0.26 | | | 0.01 | | (0.97) | | 0.14 |
+-----+-----------------------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | | | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Adjusted EBITDA: | | | | | | | | | | | |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Net (loss) income | |$ | (43,619) | | 18,243 | | $ | 937 | | (61,521) | | 10,570 |
+-----------------------------------------------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Provision for income taxes | | 7,290 | | 7,343 | | | 916 | | (2,328) | | 5,080 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Net interest expense | | 4,966 | | 5,303 | | | 1,350 | | 1,968 | | 2,226 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Depreciation and amortization | | 14,740 | | 14,255 | | | 4,807 | | 4,990 | | 5,034 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | EBITDA | | | | (16,623) | | 45,144 | | | 8,010 | | (56,891) | | 22,910 |
+-----+-------------------------------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Goodwill and intangible asset impairment | | 69,704 | | - | | | 144 | | 69,560 | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Non-cash share-based compensation | | 4,704 | | 6,617 | | | 1,508 | | 791 | | 4,367 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Adjusted EBITDA |$ | 57,785 | | 51,761 | | $ | 9,662 | | 13,460 | | 27,277 |
+-----+--------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | | | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| EBITDA Calculation: | | | | | | | | | | | |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| Operating (loss) income |$ | (33,792) | | 30,663 | | $ | 975 | | (62,161) | | 18,562 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Depreciation and amortization | | 14,740 | | 14,255 | | | 4,807 | | 4,990 | | 5,034 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Other income | | | | 2,368 | | 176 | | | 862 | | 662 | | 414 |
+-------------------------------------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Foreign exchange (loss) gain | | (2,961) | | 24 | | | 465 | | (2,117) | | (1,126) |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Losses attributable to minority interest, net of tax | | 3,022 | | 26 | | | 901 | | 1,735 | | 26 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | EBITDA | | | | (16,623) | | 45,144 | | | 8,010 | | (56,891) | | 22,910 |
+-----+-------------------------------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Goodwill and intangible asset impairment | | 69,704 | | - | | | 144 | | 69,560 | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Non-cash share-based compensation | | 4,704 | | 6,617 | | | 1,508 | | 791 | | 4,367 |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Adjusted EBITDA | | 57,785 | | 51,761 | | | 9,662 | | 13,460 | | 27,277 |
+-----+--------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Deferred offering cost | | 2,527 | | - | | | - | | 2,527 | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Restructuring charges | | 1,387 | | - | | | 1,387 | | - | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| +Inventory write-down | | 5,061 | | - | | | 1,600 | | 3,461 | | - |
+--------------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | Adjusted EBITDA before one-time charges |$ | 66,760 | | 51,761 | | $ | 12,649 | | 19,448 | | 27,277 |
+-----+--------------------------------------------------+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
| | | | | | | | | | | | | | | | | | |
+-----+-----+-----+-----------+-------+---------------+--+---+-------------+----+------------+--+-----+------------+----+-------------+--+------------+
+---+------+------+--------+---------+--------------+---------+--+-------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| GLOBE SPECIALTY METALS, INC. |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| AND SUBSIDIARY COMPANIES |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| Consolidated Statements of Cash Flows |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (In thousands) |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| (Unaudited) |
+--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | | |
+---+------+------+--------+---------+--------------+---------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | | | Nine Months Ended | | Three Months Ended |
+---+------+------+--------+---------+--------------+---------+-----------------------------------------------------------------+--+---------------------------------------------------+
| | | | | | | | | March 31, 2009 | | March | | | March | | December | | March |
| | | | | | | | | | | 31, 2008 | | | 31, 2009 | | 31, 2008 | | 31, 2008 |
+---+------+------+--------+---------+--------------+---------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | | | | | | | | | | | | | |
+---+------+------+--------+---------+--------------+---------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| Cash flows from operating activities: | | | | | | | | | | | |
+-------------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Net (loss) income |$ | (43,619) | | 18,243 | | $ | 937 | | (61,521) | | 10,570 |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Adjustments to reconcile net (loss) income to net cash | | | | | | | | | | |
| | provided | | | | | | | | | | |
+---+------------------------------------------------------------+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | by operating activities: | | | | | | | | | | | |
+---+------+--------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Depreciation and amortization | | 14,740 | | 14,255 | | | 4,807 | | 4,990 | | 5,034 |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Amortization of customer contracts | | (434) | | (2,809) | | | 5 | | (216) | | (240) |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Share-based compensation | | 4,704 | | 6,617 | | | 1,508 | | 791 | | 4,367 |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Losses attributable to minority interest, | | (3,022) | | (26) | | | (901) | | (1,735) | | (26) |
| | | | net of tax | | | | | | | | | | | |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Goodwill and intangible asset impairment | | 69,704 | | - | | | 144 | | 69,560 | | - |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Deferred taxes | | (4,077) | | 373 | | | 471 | | (5,131) | | 1,204 |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | Changes in operating assets and | | | | | | | | | | | |
| | | | liabilities: | | | | | | | | | | | |
+---+------+------+-------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Accounts receivable, net | | 22,666 | | (13,467) | | | 9,605 | | 12,805 | | (10,605) |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Inventories | | (15,428) | | (14,258) | | | (3,281) | | (4,809) | | (2,230) |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Prepaid expenses and other | | (1,761) | | 247 | | | 1,121 | | 932 | | 1,101 |
| | | | | current assets | | | | | | | | | | | |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Accounts payable | | (21,158) | | (2,192) | | | (12,712) | | (7,616) | | (2,200) |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Accrued expenses and other | | 16,914 | | 2,216 | | | 17,961 | | (4,433) | | 977 |
| | | | | current liabilities | | | | | | | | | | | |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | Other | | (7,590) | | (4,519) | | | (12,209) | | 4,439 | | 789 |
+---+------+------+--------+----------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | Net cash provided by | | 31,639 | | 4,680 | | | 7,456 | | 8,056 | | 8,741 |
| | | | | | operating activities | | | | | | | | | | | |
+---+------+------+--------+---------+------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| Cash flows from investing activities: | | | | | | | | | | | |
+-------------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Capital expenditures | | (46,507) | | (13,098) | | | (11,753) | | (20,537) | | (3,139) |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Held-to-maturity treasury securities | | 2,987 | | (2,987) | | | - | | - | | (2,987) |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Note receivable from Solsil, Inc. | | - | | (1,500) | | | - | | - | | - |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Other investing activities | | 265 | | (287) | | | (75) | | 328 | | (243) |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | Net cash used in | | (43,255) | | (17,872) | | | (11,828) | | (20,209) | | (6,369) |
| | | | | | investing activities | | | | | | | | | | | |
+---+------+------+--------+---------+------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| Cash flows from financing activities: | | | | | | | | | | | |
+-------------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Proceeds from warrants exercised | | 833 | | 3,498 | | | - | | - | | - |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Net (payments) borrowings of long-term debt | | (10,856) | | 13,631 | | | (6,152) | | (4,366) | | 16,715 |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Net (payments) borrowings of short-term debt | | (6,900) | | 2,700 | | | (3,447) | | 1,147 | | (3,755) |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Solsil, Inc. common share issuance | | 1,570 | | 374 | | | - | | 1,570 | | 374 |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Change in restricted cash | | - | | - | | | 3,580 | | (3,580) | | - |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | Other financing activities | | (2,045) | | - | | | 35 | | (380) | | - |
+---+---------------------------------------------------------+--+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | Net cash (used in) | (17,398) | | 20,203 | | | (5,984) | | (5,609) | | 13,334 |
| | | | | | provided by financing | | | | | | | | | | |
| | | | | | activities | | | | | | | | | | |
+---+------+------+--------+---------+---------------------------+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| Effect of exchange rate changes on cash and cash equivalents | | 42 | | - | | | 57 | | (71) | | - |
+------------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | Net (decrease) increase | (28,972) | | 7,011 | | | (10,299) | | (17,833) | | 15,706 |
| | | | | | in cash and cash | | | | | | | | | | |
| | | | | | equivalents | | | | | | | | | | |
+---+------+------+--------+---------+---------------------------+----------------------------------------------+--+------------+--+----+------------+--+------------+----+------------+
| Cash and cash equivalents at beginning of period | | 73,994 | | 67,741 | | | 55,321 | | 73,154 | | 59,046 |
+------------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| Cash and cash equivalents at end of period |$ | 45,022 | | 74,752 | | $ | 45,022 | | 55,321 | | 74,752 |
+------------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | | | | | | | | | | | | | |
+---+------+------+--------+---------+--------------+--------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| Supplemental disclosure of cash flow information: | | | | | | | | | | | |
+------------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | Cash paid for interest |$ | 5,737 | | 5,357 | | $ | 1,452 | | 1,091 | | 1,443 |
+---+--------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | Cash paid for income taxes | | 9,242 | | 7,684 | | | 1,213 | | 6,902 | | 4,596 |
+---+--------------------------------------------------------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | | | | | | | | | | | | | |
+---+------+------+--------+---------+--------------+--------------------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
| | | | | | | | | | | | | | | | | | |
+---+------+------+--------+---------+--------------+---------+--+-------------------------------+--+-----------+--+------------+--+----+------------+--+------------+----+------------+
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| GLOBE SPECIALTY METALS, INC. |
+-----------------------------------------------------------------------------------------------------------------------------+
| AND SUBSIDIARY COMPANIES |
+-----------------------------------------------------------------------------------------------------------------------------+
| Supplemental Statistics |
+-----------------------------------------------------------------------------------------------------------------------------+
| (Unaudited) |
+-----------------------------------------------------------------------------------------------------------------------------+
| | | | | | | | | | | | | | | | | |
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | | | | | | | Nine Months Ended | | Three Months Ended |
+----+----+----+----+----+----+----+--+-------------------------------+----+--------------------------------------------------+
| | | | | | | | | March 31, | | March 31, | | March 31, | | December | | March 31, |
| | | | | | | | | 2009 | | 2008 | | 2009 | | 31, 2008 | | 2008 |
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| Shipments in metric tons: | | | | | | | | | | |
+----------------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | Silicon metal | | | 80,373 | | 106,382 | | 18,564 | | 28,674 | | 39,839 |
+----+------------------------+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | Silicon metal alloys | | 47,460 | | 51,565 | | 9,762 | | 15,572 | | 18,066 |
+----+-----------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | Total shipments^ | | 127,833 | | 157,947 | | 28,326 | | 44,246 | | 57,905 |
+----+----+------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| ^ Excludes by-products | | | | | | | | | | |
+----------------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | | | | | | | | | | | | | | | |
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | | | | | | | March 31, | | | | | | | | |
| | | | | | | | | 2009 | | | | | | | | |
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| Liquidity calculation at March | | | | | | | | | | |
| 31, 2009: | | | | | | | | | | |
+----------------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | Cash and cash equivalents | | 45,022 | | | | | | | | |
+----+-----------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | Available lines of credit | | 41,260 | | | | | | | | |
+----+-----------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | Total liquidity | | 86,282 | | | | | | | | |
+----+----+------------------------+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
| | | | | | | | | | | | | | | | | |
+----+----+----+----+----+----+----+--+------------+----+-------------+----+--------------+--+-------------+----+-------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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