GSM_Current_Folio_Press_Release

 

 

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 6-K

 

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16

under the Securities Exchange Act of 1934

 

For the Month of November, 2018

 

Commission File Number: 001-37668

 

FERROGLOBE PLC

(Name of Registrant)

 

2nd Floor West Wing, Lansdowne House

57 Berkeley Square

London, W1J 6ER

(Address of Principal Executive Office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F 

Form 40-F 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):     

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):     

 

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

 

Yes 

No  

 

If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

 


 

 

 


 

 

 

This Form 6-K consists of the following materials, which appear immediately following this page:

• Press release dated November 26, 2018 announcing results for the quarter ended September 30, 2018
• Third quarter earnings call presentation 

 

 


 

Ferroglobe Reports Results for Third Quarter of 2018

 

Sales of $527 million; Net Loss of $3 million; Adjusted EBITDA of $45 million

 

·

Q3 sales of $526.8 million, compared to $583.0 million in Q2 2018 and $451.6 million in Q3 2017

·

Q3 net loss of $2.9 million compared to a net profit of $66.0 million in Q2 2018 and a net loss of $5.0 million in Q3 2017

·

Q3 adjusted net income attributable to parent of $0.1 million compared to $25.7 million in Q2 2018 and $9.2 million in Q3 2017

·

Q3 adjusted EBITDA of $45.0 million compared to $86.3 million in Q2 2018 and $56.1 million in Q3 2017

·

YTD sales of $1.67 billion compared to $1.27 billion in the prior year period

·

YTD net income of $98.7 million compared to a net loss of $12.1 million in the same period in the prior year

·

YTD adjusted net income of $59.1 million compared to $10.5 million in the same period in the prior year

·

YTD adjusted EBITDA of $220.9 million compared to $130.9 million in the same period in the prior year

 

LONDON, Nov. 26, 2018 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, today announced results for the third quarter of 2018.

 

Earnings Highlights

 

In Q3 2018, Ferroglobe posted a net loss of $2.9 million, or $(0.01) per share on a fully diluted basis. On an adjusted basis, Q3 2018 net profit was $0.1 million, or $0.00 per share on a fully diluted basis.

 

Q3 2018 reported EBITDA was $45.0 million, down from $130.9 million in the prior quarter. On an adjusted basis, Q3 2018 EBITDA was $45.0 million, down 47.9% from Q2 2018 adjusted EBITDA of $86.3 million. The Company reported adjusted EBITDA margin of 8.5% for Q3 2018, compared to adjusted EBITDA margin of 14.8% for Q2 2018. Year-to-date adjusted EBITDA was $220.9 million, up 68.8% from $130.9 million in the same period in the prior year.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Nine Months Ended

    

Nine Months Ended

$,000

 

September 30, 2018

 

June 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

526,838

 

$

582,977

 

$

451,628

 

$

1,670,519

 

$

1,273,475

Net (loss) profit

 

$

(2,916)

 

$

66,030

 

$

(4,987)

 

$

98,728

 

$

(12,102)

Diluted EPS

 

$

(0.01)

 

$

0.39

 

$

(0.02)

 

$

0.60

 

$

(0.04)

Adjusted net income attributable to the parent

 

$

77

 

$

25,684

 

$

9,225

 

$

59,057

 

$

10,459

Adjusted diluted EPS

 

$

0.00

 

$

0.14

 

$

0.05

 

$

0.34

 

$

0.07

Adjusted EBITDA

 

$

45,042

 

$

86,296

 

$

56,110

 

$

220,942

 

$

130,863

Adjusted EBITDA margin

 

 

8.5%

 

 

14.8%

 

 

12.4%

 

 

13.2%

 

 

10.3%

 

“Following strong growth in our business over several sequential quarters, market conditions in our main products deteriorated through Q3,” said Pedro Larrea, CEO of Ferroglobe. “However, Ferroglobe is still showing solid results overall for the first nine months of 2018, with adjusted EBITDA up 69% year-over-year to $220.9 million, leverage remaining below 2.0x and a comfortable liquidity position.”

 

Mr. Larrea continued: “In response to the evolving markets for our key products, Ferroglobe has taken swift action to optimize our position across our global production base. In this regard, we are curtailing production in our silicon metal and manganese-based alloys businesses in order to take advantage of our diversified portfolio by optimizing production among our most cost effective plants and geographies. We also continue to look at further measures to control our costs, to draw down inventories, and to enhance our free cash flow profile. That said, we are operating in a volatile environment currently and our financial results may continue to be challenged in the near-term.”

 


 

Cash Flow and Balance Sheet

 

Cash used for operations during Q3 2018 was $7.9 million, with working capital increasing by $36.0 million. Net debt was $510.9 million as of September 30, 2018, up from $475.3 million as of June 30, 2018. “We did not meet our cash flow goals in the third quarter,” said Phillip Murnane,  Ferroglobe’s CFO. “The deterioration in market conditions during the quarter left us with elevated inventories, a key factor in our decision to curtail our production.”

 

“Generating free cash flow through improvements in operations, reductions in working capital, non-core asset sales, and lowered interest expense remains our top priority” added Mr. Murnane. “Given our Q3 results, our free cash flow targets for the second half of 2018 have become a ‘stretch’  goal.  Regarding the potential refinancing of our $350 million of Senior Notes, we will continue to evaluate the credit markets and will act when the timing is right. In the mean time, our financial position remains strong, with total liquidity of approximately $250 million and no material debt maturities until 2022.”

 

Discussion of Third Quarter 2018 Results

 

Sales

 

Sales for the three months ended September 30, 2018 of $526.8 million were 16.7% higher when compared to sales of $451.6 million for the three months ended September 30, 2017. For the quarter, total shipments were up 14.3% and the average selling price was up 2.1% on Q3 2017. Sales for the nine months ended September 30, 2018 of $1,671 million were up 31.2% when compared to $1,273 million for the nine months ended September 30, 2017. For the nine month period, total shipments were up 16.8% and the average selling price was up 13.2% compared with the same period in 2017. Sales for the quarter and nine month period were aided by the Company’s manganese-based alloy plants in Mo i Rana (Norway) and Dunkirk (France), acquired by the Company on February 1, 2018.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Nine Months Ended

    

Nine Months Ended

 

 

 

 

September 30, 2018

 

June 30, 2018

 

Change

 

September 30, 2017

 

Change

 

September 30, 2018

 

September 30, 2017

 

Change

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

81,686

 

 

85,913

 

-4.9%

 

 

83,465

 

-2.1%

 

 

259,214

 

 

242,099

 

7.1%

Silicon-based Alloys

 

 

75,964

 

 

78,214

 

-2.9%

 

 

66,873

 

13.6%

 

 

230,506

 

 

212,622

 

8.4%

Manganese-based Alloys

 

 

98,280

 

 

107,457

 

-8.5%

 

 

73,642

 

33.5%

 

 

276,913

 

 

201,745

 

37.3%

Total shipments*

 

 

255,930

 

 

271,584

 

-5.8%

 

 

223,980

 

14.3%

 

 

766,633

 

 

656,466

 

16.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,636

 

$

2,773

 

-4.9%

 

$

2,330

 

13.1%

 

$

2,726

 

$

2,211

 

23.3%

Silicon-based Alloys

 

$

1,802

 

$

1,908

 

-5.6%

 

$

1,645

 

9.5%

 

$

1,889

 

$

1,564

 

20.8%

Manganese-based Alloys

 

$

1,211

 

$

1,304

 

-7.1%

 

$

1,349

 

-10.2%

 

$

1,289

 

$

1,320

 

-2.3%

Total*

 

$

1,841

 

$

1,943

 

-5.2%

 

$

1,803

 

2.1%

 

$

1,955

 

$

1,727

 

13.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

1.20

 

$

1.26

 

-4.9%

 

$

1.06

 

13.1%

 

$

1.24

 

$

1.00

 

23.3%

Silicon-based Alloys

 

$

0.82

 

$

0.87

 

-5.6%

 

$

0.75

 

9.5%

 

$

0.86

 

$

0.71

 

20.8%

Manganese-based Alloys

 

$

0.55

 

$

0.59

 

-7.1%

 

$

0.61

 

-10.2%

 

$

0.58

 

$

0.60

 

-2.3%

Total*

 

$

0.84

 

$

0.88

 

-5.2%

 

$

0.82

 

2.1%

 

$

0.89

 

$

0.78

 

13.2%

* Excludes by-products and other

 

 


 

Sales Prices & Volumes By Product

 

During Q3 2018, the average selling prices decreased by between 5% and 7% for all of our products quarter-over-quarter, reflecting overall market conditions. However, average selling prices for 2018 are well above 2017 for silicon metal and silicon-based alloys, and at levels that are compatible with historical trends. Manganese-based alloys prices in 2018 have significantly deteriorated, despite persistently high ore prices, a situation that should revert going forward based on historical market precedent.

 

Sales volumes in Q3 also decreased as compared to Q2, primarily as a consequence of seasonal slowdown in Europe and the impact of changing trade flows.  Activity to date in 2018 shows healthy growth, with volume increases over the same period in the prior year of 7% to 8% in silicon metal and silicon-based alloys. A year-to-year comparison of manganese-based alloys volumes is inapt in light of the Company’s acquisition of new manganese-based alloy assets earlier this year.

 

Cost of Sales

 

Cost of sales was $334.5 million for the three months ended September 30, 2018, an increase from $267.4 million for the three months ended September 30, 2017, primarily driven by higher input costs for raw materials and energy and higher volumes. Cost of sales was $999.0 million for the nine months ended September 30, 2018, an increase from $758.8 million for the same period in 2017, primarily driven by higher sales and increases in raw materials and energy prices, particularly manganese ore and electrodes. Cost of goods sold as a percentage of sales increased to 63.5% for the three months ended September 30, 2018 from 59.2% for the three months ended September 30, 2017, whilst for the nine months ended September 30, 2018, cost of sales as a percentage of sales was 59.8% compared to 59.6% for the nine months ended September 30, 2017.

 

Staff Costs and Other Operating Expenses

 

Staff costs and other operating expenses for the three months ended September 30, 2018 and the nine months ended September 30, 2018 were $153.2 million and $470.6 million, respectively compared to $133.9 million and $399.7 million for the corresponding periods in 2017. The increases were primarily related to labour costs for the newly acquired manganese-based alloy plants.

 

Operating Profit

 

Operating profit was $14.3 million and $180.4 million, respectively for the three and nine month periods ended September 30, 2018, compared to $27.3 million and $41.3 million for the three and nine month periods ended September 30, 2017. Included in the nine months ended September 30, 2018 was a $44.6 million bargain purchase gain related to the Company’s purchase of manganese-based alloy plants mentioned above.

 

Net Loss Attributable to the Parent

 

As a result of the various factors described above, we reported a net loss attributable to the Parent of $1.2 million, or ($0.01) per diluted share, for the three months ended September 30, 2018 and a net loss attributable to the Parent of $3.3 million, or ($0.02) for the three months ended September 30, 2017. We reported net income of $102.9 million, or $0.60 per diluted share, for the nine months ended September 30, 2018, compared to a net loss of $7.0 million, or ($0.04) per diluted share for the nine months ended September 30, 2017.

 

Adjusted EBITDA

 

Adjusted EBITDA of $45.0 million, or 8.5% of sales, for the three months ended September 30, 2018 was lower than adjusted EBITDA of $56.1 million, or 12.4% of sales, for the three months ended September 30, 2017. Adjusted EBITDA of $220.9 million, or 13.2% of sales for the nine months ended September 30, 2018, was higher than adjusted EBITDA of $130.9 million, or 10.3% of sales for the nine months ended September 30, 2017.

 

 


 

Other recent developments

 

In light of financial performance in Q3 2018, near-term market outlook and the Company’s continued focus on cash generation and deleveraging its balance sheet, no interim dividend has been declared or is payable in respect of Q3 2018.

 

On August 21, 2018 the Company announced a $20 million programme for the purchase of its ordinary shares. 2,894,049 ordinary shares in the Company have been purchased under the programme, of which 1,152,958 shares have been cancelled and 1,741,091 are held in Treasury. The average price paid per share was $6.89. The programme closed on November 7, 2018.

 

Ferroglobe’s Executive Chairman, Javier López Madrid, has advised the Company that, on October 3, 2018, the Supreme Court of Spain (Tribunal Supremo) substantially confirmed the ruling of the Spanish High Court (Audiencia Nacional) in the case related to the misuse of corporate credit cards by 65 former directors and executives of Bankia S.A and/or Caja Madrid, including Mr López Madrid. The proceeding against Mr López Madrid relates to expenditure totalling €34,807.81 incurred between 2010 and 2012 and has been previously disclosed by the Company in its regulatory filings and its press release of March 16, 2017. Mr. López Madrid has advised the Company that, pursuant to the legal framework applicable to this case, he has applied for a suspension or a replacement of his sentence with the payment of a fine of €7,120.  The Company’s Board of Directors has closely monitored the developments in this case, agreed that Mr. López Madrid remain as a director of the Company and continues to support him in his role as Executive Chairman.

 

Conference Call

 

Ferroglobe management will review the third quarter results of 2018 during a conference call at 9 a.m. Eastern Time on Tuesday, November 27, 2018.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 3499477). International callers should dial +1 914‑495‑8526 (conference ID 3499477). 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/m6/p/uz3q9tfh.

 

About Ferroglobe

 

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based specialty alloys, and 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", "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

 

EBITDA, adjusted EBITDA, adjusted diluted profit per ordinary share and adjusted profit 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:

Phillip Murnane: +44 (0) 203 129 2265
Chief Financial Officer
Email: 
phillip.murnane@ferroglobe.com

 

 

 

 

 

 

 


 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Income Statement

(in thousands of U.S. dollars, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

Nine Months Ended

    

Nine Months Ended

 

    

September 30, 2018

 

June 30, 2018

 

September 30, 2017

 

September 30, 2018

 

September 30, 2017

Sales

  

$

526,838

 

$

582,977

 

$

451,628

 

$

1,670,519

 

$

1,273,475

Cost of sales

  

 

(334,526)

 

 

(343,817)

 

 

(267,364)

 

 

(999,021)

 

 

(758,781)

Other operating income

  

 

5,701

 

 

8,511

 

 

7,404

 

 

20,998

 

 

13,041

Staff costs

  

 

(88,668)

 

 

(88,743)

 

 

(74,183)

 

 

(259,834)

 

 

(214,836)

Other operating expense

  

 

(64,524)

 

 

(75,384)

 

 

(59,741)

 

 

(210,770)

 

 

(184,874)

Depreciation and amortization charges, operating allowances and write-downs

  

 

(30,750)

 

 

(30,309)

 

 

(27,076)

 

 

(89,075)

 

 

(80,699)

Bargain purchase gain

 

 

 —

 

 

44,633

 

 

 —

 

 

44,633

 

 

 —

Other gain (loss)

 

 

221

 

 

2,752

 

 

(3,411)

 

 

2,936

 

 

(6,002)

Operating profit

 

 

14,292

 

 

100,620

 

 

27,257

 

 

180,386

 

 

41,324

Net finance expense

  

 

(13,952)

 

 

(14,412)

 

 

(14,528)

 

 

(41,520)

 

 

(42,045)

Financial derivatives gain (loss)

 

 

388

 

 

2,832

 

 

(1,823)

 

 

1,455

 

 

(5,894)

Exchange differences

  

 

(3,071)

 

 

(8,708)

 

 

(1,529)

 

 

(11,050)

 

 

5,714

(Loss) profit before tax

  

 

(2,343)

 

 

80,332

 

 

9,377

 

 

129,271

 

 

(901)

Income tax expense

  

 

(573)

 

 

(14,302)

 

 

(14,364)

 

 

(30,543)

 

 

(11,201)

(Loss) profit for the period

 

 

(2,916)

 

 

66,030

 

 

(4,987)

 

 

98,728

 

 

(12,102)

Loss attributable to non-controlling interest

  

 

1,671

 

 

1,408

 

 

1,640

 

 

4,145

 

 

5,060

(Loss) profit attributable to the parent

  

$

(1,245)

 

$

67,438

 

$

(3,347)

 

$

102,873

 

$

(7,042)

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

45,042

 

$

130,929

 

$

54,333

 

$

269,461

 

$

122,023

Adjusted EBITDA

 

$

45,042

 

$

86,296

 

$

56,110

 

$

220,942

 

$

130,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

171,935

 

 

171,987

 

 

171,947

 

 

171,966

 

 

171,947

Diluted

 

 

171,935

 

 

172,127

 

 

171,947

 

 

172,104

 

 

171,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.01)

 

$

0.39

 

$

(0.02)

 

$

0.60

 

$

(0.04)

Diluted

 

$

(0.01)

 

$

0.39

 

$

(0.02)

 

$

0.60

 

$

(0.04)

 

 


 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

June 30,

 

December 31,

 

    

2018

    

2018

    

2017

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

204,264

 

$

203,717

 

$

205,287

Other intangible assets

 

 

 

55,997

 

 

57,897

 

 

58,658

Property, plant and equipment

 

 

 

941,780

 

 

947,229

 

 

917,974

Non-current financial assets

 

 

 

88,199

 

 

116,974

 

 

89,315

Deferred tax assets

 

 

 

6,679

 

 

3,972

 

 

5,273

Non-current receivables from related parties

 

 

 

2,315

 

 

2,332

 

 

2,400

Other non-current assets

 

 

 

18,206

 

 

18,887

 

 

30,059

Total non-current assets

 

 

 

1,317,440

 

 

1,351,008

 

 

1,308,966

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

554,676

 

 

532,574

 

 

361,231

Trade and other receivables

 

 

 

142,233

 

 

151,062

 

 

111,463

Current receivables from related parties

 

 

 

5,571

 

 

5,550

 

 

4,572

Current income tax assets

 

 

 

15,848

 

 

10,405

 

 

17,158

Current financial assets

 

 

 

 2

 

 

854

 

 

2,469

Other current assets

 

 

 

12,898

 

 

18,283

 

 

9,926

Cash and cash equivalents

 

 

 

131,671

 

 

155,984

 

 

184,472

Total current assets

 

 

 

862,899

 

 

874,712

 

 

691,291

Total assets

 

$

 

2,180,339

 

$

2,225,720

 

$

2,000,257

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

987,388

 

$

1,004,125

 

$

937,758

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

4,336

 

 

5,387

 

 

3,172

Provisions

 

 

 

78,846

 

 

78,767

 

 

82,397

Bank borrowings

 

 

 

133,056

 

 

108,143

 

 

 —

Obligations under finance leases

 

 

 

57,389

 

 

61,078

 

 

69,713

Debt instruments

 

 

 

341,102

 

 

340,564

 

 

339,332

Other financial liabilities

 

 

 

39,867

 

 

42,138

 

 

49,011

Other non-current liabilities

 

 

 

20,367

 

 

21,178

 

 

3,536

Deferred tax liabilities

 

 

 

67,513

 

 

64,689

 

 

65,142

Total non-current liabilities

 

 

 

742,476

 

 

721,944

 

 

612,303

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

24,308

 

 

22,563

 

 

33,095

Bank borrowings

 

 

 

1,341

 

 

1,241

 

 

1,003

Obligations under finance leases

 

 

 

13,019

 

 

13,024

 

 

12,920

Debt instruments

 

 

 

2,734

 

 

10,936

 

 

10,938

Other financial liabilities

 

 

 

54,027

 

 

54,158

 

 

88,420

Payables to related parties

 

 

 

12,273

 

 

17,599

 

 

12,973

Trade and other payables

 

 

 

253,591

 

 

276,289

 

 

192,859

Current income tax liabilities

 

 

 

6,435

 

 

4,210

 

 

7,419

Other current liabilities

 

 

 

82,747

 

 

99,631

 

 

90,569

Total current liabilities

 

 

 

450,475

 

 

499,651

 

 

450,196

Total equity and liabilities

 

$

 

2,180,339

 

$

2,225,720

 

$

2,000,257

 


 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Cash Flows

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

 

Nine Months Ended

    

Nine Months Ended

 

    

September 30, 2018

 

June 30, 2018

 

September 30, 2017

 

 

September 30, 2018

 

September 30, 2017

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(2,916)

 

$

66,030

 

$

(4,987)

 

 

$

98,728

 

$

(12,102)

Adjustments to reconcile net (loss) profit
to net cash used by operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

573

 

 

14,302

 

 

14,364

 

 

 

30,543

 

 

11,201

Depreciation and amortization charges,
operating allowances and write-downs

 

 

30,750

 

 

30,309

 

 

27,076

 

 

 

89,075

 

 

80,699

Net finance expense

 

 

13,952

 

 

14,412

 

 

14,528

 

 

 

41,520

 

 

42,045

Financial derivatives (gain) loss

 

 

(388)

 

 

(2,832)

 

 

1,823

 

 

 

(1,455)

 

 

5,894

Exchange differences

 

 

3,071

 

 

8,708

 

 

1,529

 

 

 

11,050

 

 

(5,714)

Bargain purchase gain

 

 

 —

 

 

(44,633)

 

 

 —

 

 

 

(44,633)

 

 

 —

Share-based compensation

 

 

1,050

 

 

33

 

 

 —

 

 

 

1,782

 

 

 —

Other adjustments

 

 

(221)

 

 

(2,752)

 

 

3,445

 

 

 

(2,936)

 

 

6,037

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase in inventories

 

 

(25,666)

 

 

(59,050)

 

 

(4,372)

 

 

 

(192,197)

 

 

(9,207)

Decrease (increase) in trade receivables

 

 

6,224

 

 

(19,257)

 

 

(90,108)

 

 

 

(13,546)

 

 

(76,887)

(Decrease) increase in trade payables

 

 

(21,213)

 

 

476

 

 

3,370

 

 

 

49,638

 

 

12,583

Other

 

 

10,543

 

 

6,817

 

 

6,631

 

 

 

(32,410)

 

 

(28,420)

Income taxes paid

 

 

(5,257)

 

 

(14,186)

 

 

(3,768)

 

 

 

(29,425)

 

 

(9,984)

Interest paid

 

 

(18,400)

 

 

(2,957)

 

 

(22,249)

 

 

 

(38,658)

 

 

(36,356)

Net cash used by operating activities

 

 

(7,898)

 

 

(4,580)

 

 

(52,718)

 

 

 

(32,924)

 

 

(20,211)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other intangible assets

 

 

(149)

 

 

(2,221)

 

 

(88)

 

 

 

(3,073)

 

 

(498)

Property, plant and equipment

 

 

(25,696)

 

 

(29,778)

 

 

(14,692)

 

 

 

(78,005)

 

 

(41,373)

Other

 

 

 —

 

 

(8)

 

 

 —

 

 

 

(8)

 

 

(14)

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current assets

 

 

 —

 

 

12,734

 

 

 —

 

 

 

12,734

 

 

 —

Other

 

 

947

 

 

1,904

 

 

 —

 

 

 

6,861

 

 

 —

Acquisition of subsidiary

 

 

 —

 

 

 —

 

 

 —

 

 

 

(20,379)

 

 

 —

Interest and finance income received

 

 

638

 

 

2,273

 

 

54

 

 

 

2,990

 

 

618

Net cash used by investing activities

 

 

(24,260)

 

 

(15,096)

 

 

(14,726)

 

 

 

(78,880)

 

 

(41,267)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

(10,321)

 

 

(10,321)

 

 

 —

 

 

 

(20,642)

 

 

 —

Payment for debt issuance costs

 

 

 —

 

 

 —

 

 

(3,210)

 

 

 

(4,476)

 

 

(16,765)

Repayment of other financial liabilities

 

 

 —

 

 

(33,096)

 

 

 —

 

 

 

(33,096)

 

 

 —

Proceeds from debt issuance

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

 

 

350,000

Increase/(decrease) in bank borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

25,286

 

 

37,668

 

 

118,468

 

 

 

245,318

 

 

149,923

Payments

 

 

 —

 

 

 —

 

 

(38,296)

 

 

 

(106,514)

 

 

(425,976)

Proceeds from stock option exercises

 

 

 —

 

 

240

 

 

 —

 

 

 

240

 

 

 —

Other amounts paid due to financing activities

 

 

(3,067)

 

 

(4,648)

 

 

(990)

 

 

 

(10,702)

 

 

(18,895)

Payments to acquire or redeem own shares

 

 

(3,502)

 

 

 —

 

 

 —

 

 

 

(3,502)

 

 

 —

Net cash provided (used) by financing activities

 

 

8,396

 

 

(10,157)

 

 

75,972

 

 

 

66,626

 

 

38,287

Total net cash flows for the period

 

 

(23,762)

 

 

(29,833)

 

 

8,528

 

 

 

(45,178)

 

 

(23,191)

Beginning balance of cash and cash equivalents

 

 

155,984

 

 

197,669

 

 

183,561

 

 

 

184,472

 

 

196,982

Exchange differences on cash and
cash equivalents in foreign currencies

 

 

(551)

 

 

(11,852)

 

 

(2,326)

 

 

 

(7,623)

 

 

15,972

Ending balance of cash and cash equivalents

 

$

131,671

 

$

155,984

 

$

189,763

 

 

$

131,671

 

$