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 February, 2019

 

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:

• Press release dated February 25, 2019 announcing results for the quarter and year ended December 31, 2018
• Fourth quarter and year-end earnings call presentation 

• EX-4.1 Second Amendment to Credit Agreement

 

 


 

Ferroglobe Reports Results for Fourth Quarter and Full Year 2018

 

Adjusted EBITDA of $32 million in Q4 2018 and of $253 million in Full Year 2018; Net Debt of $429 million

 

·

Q4 2018 results:

·

Sales of $603.5 million, compared to $526.8 million in Q3 2018 and $468.2 million in Q4 2017

·

Net loss of $(15.2) million compared to a net loss of $(2.9) million in Q3 2018 and a net profit of $6.3 million in Q4 2017

·

Adjusted net loss attributable to the parent of $(7.0) million compared to an adjusted net profit attributable to the parent of $0.1 million in Q3 2018 and $8.1 million in Q4 2017 

·

Adjusted EBITDA of $32.1 million compared to $45.0 million in Q3 2018 and $53.7 million in Q4 2017

·

Full Year 2018 results:

·

Sales of $2.27 billion compared to $1.74 billion in 2017

·

Net income of $83.5 million compared to a net loss of $(5.8) million in 2017

·

Adjusted net income of $52.1 million compared to $18.5 million in 2017

·

Adjusted EBITDA of $253.1 million compared to $184.5 million in 2017

·

Net debt at $428.8 million as of December 31, 2018, compared to $510.9 million at the end of the prior quarter

·

On February 22, 2019, Ferroglobe obtained the consent of its lenders for an amendment to its existing revolving credit agreement

 

LONDON, February 25, 2019 (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 fourth quarter and full year 2018.

 

Q4 2018 Earnings Highlights

 

“Volumes were strong in Q4, compensating for some of the weakness we experienced at the end of Q3, while pricing in our main products weakened further as a result of challenging market conditions.” said Pedro Larrea, CEO of Ferroglobe. “Our cash generating initiatives in the second half of 2018 delivered a significantly improved balance sheet at the end of the year.”

 

In Q4 2018, Ferroglobe posted a net loss of $(15.2) million, or $(0.08) per share. On an adjusted basis, Q4 2018 net loss was $(7.0) million, or $(0.05) per share.

 

Q4 2018 reported EBITDA was $27.1 million, down from $45.0 million in the prior quarter. On an adjusted basis, Q4 2018 EBITDA was $32.1 million, down 28.7% from Q3 2018 adjusted EBITDA of $45.0 million. The Company reported adjusted EBITDA margin of 5.3% for Q4 2018, compared to adjusted EBITDA margin of 8.5% for Q3 2018.

 

Full Year 2018 Earnings Highlights

 

For Full Year 2018, Ferroglobe posted a net profit of $83.5 million, or $0.52 per share. On an adjusted basis, Full Year 2018 net profit was $52.1 million, or $0.28 per share.

 

For the Full Year 2018 reported EBITDA was $296.5 million, up 105.6% from $144.2 million in the prior year. 2018 adjusted EBITDA was $253.1 million, up 37.1% from $184.5 million in 2017. The Company reported adjusted EBITDA margins of 11.1% for Full Year 2018, compared to adjusted EBITDA margins of 10.6% for 2017.

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Year Ended

    

Year Ended

$,000 (unaudited)

 

December 31, 2018

 

September 30, 2018

 

December 31, 2017

 

December 31, 2018

 

December 31, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

603,519

 

$

526,838

 

$

468,218

 

$

2,274,038

 

$

1,741,693

Net (loss) profit

 

$

(15,244)

 

$

(2,916)

 

$

6,280

 

$

83,484

 

$

(5,822)

Diluted EPS

 

$

(0.08)

 

$

(0.01)

 

$

0.04

 

$

0.52

 

$

(0.00)

Adjusted net (loss) income attributable to the parent

 

$

(7,006)

 

$

77

 

$

8,056

 

$

52,050

 

$

18,516

Adjusted diluted EPS

 

$

(0.05)

 

$

0.00

 

$

0.05

 

$

0.28

 

$

0.11

Adjusted EBITDA

 

$

32,111

 

$

45,042

 

$

53,670

 

$

253,053

 

$

184,533

Adjusted EBITDA margin

 

 

5.3%

 

 

8.5%

 

 

11.5%

 

 

11.1%

 

 

10.6%

 

Mr. Larrea continued: “Full year 2018 results are the strongest in Ferroglobe’s history, although our performance in the latter half of the year suffered as a result of deteriorating market conditions. We reacted promptly to this change by optimizing our global production platform while maintaining the flexibility to seize opportunities as the market recovers.  We have curtailed production in our silicon metal and manganese-based alloys businesses. That said, market conditions remain challenging and we continue to look at further measures to control our costs, improve our financial performace and deliver free cash flow.”

 

Cash Flow and Balance Sheet

 

Cash flow generated by our operations during Q4 2018 was $109.2 million, with working capital decreasing by $84.1 million. Net debt was $428.8 million as of December 31, 2018, significantly down from $510.9 million as of September 30, 2018.  Mr. Larrea added: “We have delivered on all our cash generating initiatives in the second half of 2018 and achieved a greater than expected net debt reduction. Through this effort, we have been able to navigate a complex 2018.  We added significant new assets in the first half and then encountered deteriorating market conditions in the second half and still ended the year overall with nearly breakeven free cash flow, which includes all cash flows used in investing activities.”  

 

On February 22, 2019, Ferroglobe obtained the consent of its lenders for an amendment to its revolving credit facility that affords the Company additional flexibility under its financial maintenance covenants in the coming quarters.  The amendment suspends the existing covenant to maintain a maximum total net leverage ratio during an interim period beginning with the first quarter of 2019 through the first fiscal quarter of 2020, and provides a new covenant to maintain a maximum secured net leverage ratio and a new covenant to maintain a minimum cash liquidity level. The new covenants will be in effect only during the interim period, after which the existing covenant to maintain a maximum total net leverage ratio will be reinstated.  The amendment also reduced the aggregate commitments under the revolving credit facility from $250 million to $200 million.

“Our top priority remains focusing on our financial performance and generating cash flow through improvements in operations, reductions in working capital, divestiture of non-core assets, and lowered interest expense,” added Mr. Larrea. “We expect to continue to reduce our net debt through the first half of 2019. The renegotiated terms of our revolving credit facility reinforce the strength of our balance sheet and our ability to face evolving market conditions with confidence.”

 

Discussion of Fourth Quarter 2018 Results

 

The Company notes that the financial results presented for the fourth quarter and for full year 2018 are unaudited and may be subsequently adjusted for items including impairment of long-lived assets such as the assets associated with our solar-grade silicon project. Any subsequent changes, if required, will be reflected in our audited Annual Report on Form 20-F.

 


 

Sales

 

Sales for the three months ended December 31, 2018 of $603.5 million were 28.9% higher than sales of $468.2 million for the three months ended December 31, 2017. Total shipments in the fourth quarter of 2018 were up 42.1% and the average selling price was down 10.9% versus the same period in the prior year. Sales for the full year 2018 of $2,274 million were up 30.6% compared to $1,742 million for 2017. For the full year, total shipments were up 23.3% and the average selling price was up 5.9% compared with 2017. Sales for the fourth quarter of 2018 and the full year benefited from the Company’s manganese-based alloy plants in Mo i Rana (Norway) and Dunkirk (France), acquired on February 1, 2018, albeit partially offset by lower average selling prices. 

 

Sales Prices & Volumes By Product


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Year Ended

    

Year Ended

 

 

 

 

December 31, 2018

 

September 30, 2018

 

Change

 

December 31, 2017

 

Change

 

December 31, 2018

 

December 31, 2017

 

Change

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

93,364

 

 

81,686

 

14.3%

 

 

83,785

 

11.4%

 

 

352,578

 

 

325,884

 

8.2%

Silicon-based Alloys

 

 

81,197

 

 

75,964

 

6.9%

 

 

70,399

 

15.3%

 

 

311,703

 

 

283,021

 

10.1%

Manganese-based Alloys

 

 

147,445

 

 

98,280

 

50.0%

 

 

72,374

 

103.7%

 

 

424,358

 

 

274,119

 

54.8%

Total shipments*

 

 

322,006

 

 

255,930

 

25.8%

 

 

226,558

 

42.1%

 

 

1,088,639

 

 

883,024

 

23.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,429

 

$

2,636

 

-7.9%

 

$

2,440

 

-0.5%

 

$

2,647

 

$

2,270

 

16.6%

Silicon-based Alloys

 

$

1,719

 

$

1,802

 

-4.6%

 

$

1,741

 

-1.3%

 

$

1,845

 

$

1,608

 

14.7%

Manganese-based Alloys

 

$

1,158

 

$

1,211

 

-4.4%

 

$

1,346

 

-14.0%

 

$

1,244

 

$

1,327

 

-6.3%

Total*

 

$

1,668

 

$

1,841

 

-9.4%

 

$

1,873

 

-10.9%

 

$

1,870

 

$

1,765

 

5.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

1.10

 

$

1.20

 

-7.9%

 

$

1.11

 

-0.5%

 

$

1.20

 

$

1.03

 

16.6%

Silicon-based Alloys

 

$

0.78

 

$

0.82

 

-4.6%

 

$

0.79

 

-1.3%

 

$

0.84

 

$

0.73

 

14.7%

Manganese-based Alloys

 

$

0.53

 

$

0.55

 

-4.4%

 

$

0.61

 

-14.0%

 

$

0.56

 

$

0.60

 

-6.3%

Total*

 

$

0.76

 

$

0.84

 

-9.4%

 

$

0.85

 

-10.9%

 

$

0.85

 

$

0.80

 

5.9%

* Excludes by-products and other

 

During Q4 2018, the average selling prices decreased between 4% and 8% for all of our products quarter-over-quarter, reflecting weak overall market conditions. Average selling prices for 2018 are well above 2017 for silicon metal and silicon-based alloys. Manganese-based alloys prices in 2018 have deteriorated significantly despite persistently high ore prices.  We expect the relationship between market prices of manganese-based alloys and ore prices to revert to its historical correlation over time.

 

Sales volumes in Q4 significantly increased as compared to Q3, partly because of delayed shipments at the end of Q3.  Activity in full year 2018 has shown healthy growth overall, with volume increases over 2017 of 8% to 10% in silicon metal and silicon-based alloys, respectively. A year-to-year comparison of manganese-based alloys volumes is not meaningful in light of the Company’s acquisition of new manganese-based alloy assets in early 2018.

 

Cost of Sales

 

Cost of sales was $445.8 million for the three months ended December 31, 2018, an increase from $284.6 million for the three months ended December 31, 2017, primarily driven by higher volumes and higher input costs for raw materials and energy. Cost of sales was $1,444.8 million for the full year 2018, an increase from $1,043.4 million for the same period in 2017, primarily driven by higher sales and increases in energy and raw material prices, particularly the prices of manganese ore and electrodes.

 


 

 

Staff Costs and Other Operating Expenses

 

Staff costs and other operating expenses for the three months and full year ended December 31, 2018 were $154.4 million and $625.0 million, respectively compared to $142.2 million and $541.9 million for the corresponding periods in 2017. The increases were primarily related to labour costs for the newly acquired manganese-based alloy plants.

 

Operating (Loss) Profit

 

Operating (loss) profit was $(3.0) million and $177.4 million, respectively for the three months and full year periods ended December 31, 2018, compared to an operating loss of $(1.6) million and an operating profit of $39.7 million for the three months and full year ended December 31, 2017. Included in the full year 2018 was a $37.3 million bargain purchase gain related to the Company’s purchase of manganese-based alloy plants mentioned above.  The bargain purchase gain was reduced by $7.4 million in the forth quarter of 2018 as a result of purchase price accounting adjustments.

 

Net (Loss) Profit Attributable to the Parent

 

As a result of the various factors described above, we reported a net (loss) attributable to the Parent of $(13.3) million, or $(0.08) per share, for the three months ended December 31, 2018 compared to a net profit attributable to the Parent of $6.4 million, or $0.04 for the three months ended December 31, 2017. We reported net income attributable to the Parent of $89.5 million, or $0.52 per share, for the full year 2018, compared to a net loss of $(0.7) million, or ($0.00) per share for 2017.

 

Adjusted EBITDA

 

Adjusted EBITDA of $32.1 million, or 5.3% of sales, for the three months ended December 31, 2018 was lower than adjusted EBITDA of $53.7 million, or 11.5% of sales, for the three months ended December 31, 2017. Adjusted EBITDA of $253.1 million, or 11.1% of sales for the full year 2018, was higher than adjusted EBITDA of $184.5 million, or 10.6% of sales for 2017.

 

Other recent developments

 

Phillip Murnane has taken a temporary medical leave of absence from his duties as Chief Financial Officer and we expect him to be on leave for the next few weeks. During Phil’s absence, José M. Calvo-Sotelo (Deputy CFO and EVP - Corporate Development of Ferroglobe and former CFO of Grupo FerroAtlántica), is assuming the duties of the CFO.

 

Conference Call

 

Ferroglobe management will review the fourth quarter and full year results of 2018 during a conference call at 9:00 a.m. Eastern Time on February 26, 2019.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 4581015). International callers should dial +1 914‑495‑8526 (conference ID 4581015). 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/sjakzohb.

 

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 (loss) profit per ordinary share, and adjusted (loss) 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:

 

José M. Calvo-Sotelo

Deputy Chief Financial Officer & EVP - Corporate Development

Tel:  +44 203-129-2420

Email:   jmcalvosotelo@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

 

Year Ended

    

Year Ended

 

    

December 31, 2018

 

September 30, 2018

 

December 31, 2017

 

December 31, 2018

 

December 31, 2017

Sales

  

$

603,519

 

$

526,838

 

$

468,218

 

$

2,274,038

 

$

1,741,693

Cost of sales

  

 

(445,772)

 

 

(334,526)

 

 

(284,614)

 

 

(1,444,793)

 

 

(1,043,395)

Other operating income

  

 

25,039

 

 

5,701

 

 

5,158

 

 

46,037

 

 

18,199

Staff costs

  

 

(81,209)

 

 

(88,668)

 

 

(87,127)

 

 

(341,043)

 

 

(301,963)

Other operating expense

  

 

(73,160)

 

 

(64,524)

 

 

(55,052)

 

 

(283,930)

 

 

(239,926)

Depreciation and amortization charges, operating allowances and write-downs

  

 

(30,062)

 

 

(30,750)

 

 

(23,830)

 

 

(119,137)

 

 

(104,529)

Bargain purchase gain

 

 

(7,379)

 

 

 —

 

 

 —

 

 

37,254

 

 

 —

Impairment losses

 

 

(4,435)

 

 

 —

 

 

(30,859)

 

 

(4,435)

 

 

(30,957)

Other gain

 

 

10,477

 

 

221

 

 

6,479

 

 

13,413

 

 

575

Operating (loss) profit

 

 

(2,982)

 

 

14,292

 

 

(1,627)

 

 

177,404

 

 

39,697

Net finance expense

  

 

(15,676)

 

 

(13,952)

 

 

(19,659)

 

 

(57,196)

 

 

(61,704)

Financial derivatives gain (loss)

 

 

1,383

 

 

388

 

 

(956)

 

 

2,838

 

 

(6,850)

Exchange differences

  

 

(846)

 

 

(3,071)

 

 

2,500

 

 

(11,896)

 

 

8,214

(Loss) profit before tax

  

 

(18,121)

 

 

(2,343)

 

 

(19,742)

 

 

111,150

 

 

(20,643)

Income tax benefit (expense)

  

 

2,877

 

 

(573)

 

 

26,022

 

 

(27,666)

 

 

14,821

(Loss) profit for the period

 

 

(15,244)

 

 

(2,916)

 

 

6,280

 

 

83,484

 

 

(5,822)

Loss attributable to non-controlling interest

  

 

1,895

 

 

1,671

 

 

84

 

 

6,040

 

 

5,144

(Loss) profit attributable to the parent

  

$

(13,349)

 

$

(1,245)

 

$

6,364

 

$

89,524

 

$

(678)

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

27,080

 

$

45,042

 

$

22,203

 

$

296,541

 

$

144,226

Adjusted EBITDA

 

$

32,111

 

$

45,042

 

$

53,670

 

$

253,053

 

$

184,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

170,183

 

 

171,935

 

 

171,953

 

 

171,406

 

 

171,949

Diluted

 

 

170,183

 

 

171,935

 

 

172,128

 

 

171,530

 

 

171,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.08)

 

$

(0.01)

 

$

0.04

 

$

0.52

 

$

(0.00)

Diluted

 

$

(0.08)

 

$

(0.01)

 

$

0.04

 

$

0.52

 

$

(0.00)

 

 


 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

    

2018

    

2018

    

2017

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

202,848

 

$

204,264

 

$

205,287

Other intangible assets

 

 

 

65,850

 

 

55,997

 

 

58,658

Property, plant and equipment

 

 

 

929,421

 

 

941,780

 

 

917,974

Non-current financial assets

 

 

 

72,865

 

 

88,199

 

 

89,315

Deferred tax assets

 

 

 

3,304

 

 

6,679

 

 

5,273

Non-current receivables from related parties

 

 

 

2,288

 

 

2,315

 

 

2,400

Other non-current assets

 

 

 

16,887

 

 

18,206

 

 

30,059

Total non-current assets

 

 

 

1,293,463

 

 

1,317,440

 

 

1,308,966

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

459,257

 

 

554,676

 

 

361,231

Trade and other receivables

 

 

 

156,781

 

 

142,233

 

 

111,463

Current receivables from related parties

 

 

 

14,226

 

 

5,571

 

 

4,572

Current income tax assets

 

 

 

27,517

 

 

15,848

 

 

17,158

Current financial assets

 

 

 

 —

 

 

 2

 

 

2,469

Other current assets

 

 

 

8,315

 

 

12,898

 

 

9,926

Cash and cash equivalents

 

 

 

216,562

 

 

131,671

 

 

184,472

Total current assets

 

 

 

882,658

 

 

862,899

 

 

691,291

Total assets

 

$

 

2,176,121

 

$

2,180,339

 

$

2,000,257

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

943,788

 

$

987,388

 

$

937,758

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

1,434

 

 

4,336

 

 

3,172

Provisions

 

 

 

75,750

 

 

78,846

 

 

82,397

Bank borrowings

 

 

 

132,821

 

 

133,056

 

 

 —

Obligations under finance leases

 

 

 

53,472

 

 

57,389

 

 

69,713

Debt instruments

 

 

 

341,657

 

 

341,102

 

 

339,332

Other financial liabilities

 

 

 

32,788

 

 

39,867

 

 

49,011

Other non-current liabilities

 

 

 

30,369

 

 

20,367

 

 

3,536

Deferred tax liabilities

 

 

 

68,569

 

 

67,513

 

 

65,142

Total non-current liabilities

 

 

 

736,860

 

 

742,476

 

 

612,303

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

40,586

 

 

24,308

 

 

33,095

Bank borrowings

 

 

 

8,191

 

 

1,341

 

 

1,003

Obligations under finance leases

 

 

 

12,999

 

 

13,019

 

 

12,920

Debt instruments

 

 

 

10,937

 

 

2,734

 

 

10,938

Other financial liabilities

 

 

 

52,524

 

 

54,027

 

 

88,420

Payables to related parties

 

 

 

11,128

 

 

12,273

 

 

12,973

Trade and other payables

 

 

 

256,823

 

 

253,591

 

 

192,859

Current income tax liabilities

 

 

 

1,826

 

 

6,435

 

 

7,419

Other current liabilities

 

 

 

100,459

 

 

82,747

 

 

90,569

Total current liabilities

 

 

 

495,473

 

 

450,475

 

 

450,196

Total equity and liabilities

 

$

 

2,176,121

 

$

2,180,339

 

$

2,000,257

 


 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Cash Flows

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

 

Year Ended

    

Year Ended

 

    

December 31, 2018

 

September 30, 2018

 

 

December 31, 2018

 

December 31, 2017

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(15,244)

 

$

(2,916)

 

 

$

83,484

 

$

(5,822)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

(2,877)

 

 

573

 

 

 

27,666

 

 

(14,821)

Depreciation and amortization charges,
operating allowances and write-downs

 

 

30,062

 

 

30,750

 

 

 

119,137

 

 

104,529

Net finance expense

 

 

15,676

 

 

13,952

 

 

 

57,196

 

 

61,704

Financial derivatives (gain) loss

 

 

(1,383)

 

 

(388)

 

 

 

(2,838)

 

 

6,850

Exchange differences

 

 

846

 

 

3,071

 

 

 

11,896

 

 

(8,214)

Impairment losses

 

 

4,435

 

 

 —

 

 

 

4,435

 

 

30,957

Bargain purchase gain

 

 

7,379

 

 

 —

 

 

 

(37,254)

 

 

 —

Share-based compensation

 

 

1,016

 

 

1,050

 

 

 

2,798

 

 

2,405

Other adjustments

 

 

(10,477)

 

 

(221)

 

 

 

(13,413)

 

 

(575)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in inventories

 

 

88,903

 

 

(25,666)

 

 

 

(103,294)

 

 

(16,274)

(Increase) decrease in trade receivables

 

 

(13,051)

 

 

6,224

 

 

 

(26,597)

 

 

50,168

Increase (decrease) in trade payables

 

 

5,772

 

 

(21,213)

 

 

 

55,410

 

 

17,613

Other

 

 

9,518

 

 

10,543

 

 

 

(22,892)

 

 

(12,251)

Income taxes paid

 

 

(6,983)

 

 

(5,257)

 

 

 

(36,408)

 

 

(26,764)

Interest paid

 

 

(4,360)

 

 

(18,400)

 

 

 

(43,018)

 

 

(39,130)

Net cash provided (used) by operating activities

 

 

109,232

 

 

(7,898)

 

 

 

76,308

 

 

150,375

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other intangible assets

 

 

(240)

 

 

(149)

 

 

 

(3,313)

 

 

(811)

Property, plant and equipment

 

 

(30,239)

 

 

(25,696)

 

 

 

(108,244)

 

 

(74,616)

Other

 

 

 —

 

 

 —

 

 

 

(8)

 

 

(343)

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other non-current assets

 

 

 —

 

 

 —

 

 

 

12,734

 

 

 —

Other

 

 

 —

 

 

947

 

 

 

6,861

 

 

 —

Acquisition of subsidiary

 

 

 —

 

 

 —

 

 

 

(20,379)

 

 

 —

Disposal of subsidiary

 

 

20,533

 

 

 —

 

 

 

20,533

 

 

 —

Interest and finance income received

 

 

843

 

 

638

 

 

 

3,833

 

 

952

Net cash used by investing activities

 

 

(9,103)

 

 

(24,260)

 

 

 

(87,983)

 

 

(74,818)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 —

 

 

(10,321)

 

 

 

(20,642)

 

 

 —

Payment for debt issuance costs

 

 

(429)

 

 

 —

 

 

 

(4,905)

 

 

(16,765)

Repayment of other financial liabilities

 

 

 —

 

 

 —

 

 

 

(33,096)

 

 

 —

Proceeds from debt issuance

 

 

 —

 

 

 —

 

 

 

 —

 

 

350,000

Increase/(decrease) in bank borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

6,882

 

 

25,286

 

 

 

252,200

 

 

31,455

Payments

 

 

 —

 

 

 —

 

 

 

(106,514)

 

 

(453,948)

Proceeds from stock option exercises

 

 

 —

 

 

 —

 

 

 

240

 

 

180

Other amounts paid due to financing activities

 

 

(3,177)

 

 

(3,067)

 

 

 

(13,879)

 

 

(24,319)

Payments to acquire or redeem own shares

 

 

(16,598)

 

 

(3,502)

 

 

 

(20,100)

 

 

 —

Net cash (used) provided by financing activities

 

 

(13,322)

 

 

8,396

 

 

 

53,304

 

 

(113,397)

Total net cash flows for the period

 

 

86,807

 

 

(23,762)

 

 

 

41,629

 

 

(37,840)

Beginning balance of cash and cash equivalents

 

 

131,671

 

 

155,984

 

 

 

184,472

 

 

196,982

Exchange differences on cash and
cash equivalents in foreign currencies

 

 

(1,916)

 

 

(551)

 

 

 

(9,539)

 

 

25,330

Ending balance of cash and cash equivalents

 

$

216,562

 

$

131,671

 

 

$

216,562

 

$

184,472

 


 

Adjusted EBITDA ($,000):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

Year Ended

    

Year Ended

 

    

December 31, 2018

 

September 30, 2018

 

December 31, 2017

 

December 31, 2018

 

December 31, 2017

(Loss) profit attributable to the parent

 

$

(13,349)

 

$

(1,245)

 

$

6,364

 

$

89,524

 

$

(678)

Loss attributable to non-controlling interest

 

 

(1,895)

 

 

(1,671)

 

 

(84)

 

 

(6,040)

 

 

(5,144)

Income tax (benefit) expense </