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 June, 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 June 3, 2019 announcing results for the first quarter ended March 31, 2019
• First quarter earnings call presentation 

 

 

Ferroglobe Reports First Quarter Results of 2019

 

Sales of $456.8 million; Net Loss of $(28.6) million; Adjusted EBITDA of $11.8 million

 

·

Q1 sales of $456.8 million, compared to $603.5 million in Q4 2018 and $560.7 million in Q1 2018

·

Q1 net loss of $(28.6) million compared to a net loss of $(74.2) million in Q4 2018 and a net profit of $35.6 million in Q1 2018

·

Q1 adjusted net loss attributable to parent of $(22.3) million compared to a net profit of $4.9 million in Q4 2018 and a net profit of $33.3 million in Q1 2018

·

Q1 adjusted EBITDA of $11.8 million compared to $32.1 million in Q4 2018 and $89.6 million in Q1 2018

·

Net debt at $419.7 million as of March 31, 2019, compared to $428.7 million at the end of the prior quarter

·

Cash position stable at $216.6 million. Total liquidity of $285.2 million.

·

On June 2, 2019, Ferroglobe entered into a definitive agreement to sell the hydro-electric operations of its non-core energy segment in Spain, together with the associated Cee-Dumbría factory (which will be subject to a tolling agreement between Ferroglobe and the factory´s owner), for estimated gross cash proceeds of €170 million (approximately $190 million)

 

LONDON, June 3, 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 first quarter of 2019.

 

“Our Q1 results reflect a significant market downturn continuing into 2019. We have reacted swiftly, maintaining our cash position at $217 million, reducing our net debt and reaching a final agreement to divest non-core assets for $190 million,” said Pedro Larrea, CEO of Ferroglobe. “We continue to focus on deleveraging the company, with a target of reaching a net debt level below $200 million, and we have made significant progress in replacing our current RCF with a structure that eliminates leverage-based financial covenants.”

 

Earnings Highlights

In Q1 2019, Ferroglobe posted a net loss of $(28.6) million, or $(0.16) per share on a fully diluted basis. On an adjusted basis, Q1 2019 net loss was $(22.3) million, or $(0.13) per share on a fully diluted basis.

 

Q1 2019 reported EBITDA was $11.8 million, up from $(33.6) million in the prior quarter. On an adjusted basis, Q1 2019 EBITDA was $11.8 million, down 63.2% from Q4 2018 adjusted EBITDA of $32.1 million. The Company reported an adjusted EBITDA margin of 2.6% for Q1 2019, compared to an adjusted EBITDA margin of 5.3% for Q4 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Year Ended

    

$,000 (unaudited)

 

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

December 31, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

456,790

 

$

603,519

 

$

560,704

 

$

2,274,038

 

Net (loss) profit

 

$

(28,554)

 

$

(74,155)

 

$

35,614

 

$

24,573

 

Diluted EPS

 

$

(0.16)

 

$

(0.35)

 

$

0.21

 

$

0.25

 

Adjusted net (loss) income attributable to the parent

 

$

(22,251)

 

$

4,876

 

$

33,296

 

$

63,932

 

Adjusted diluted EPS

 

$

(0.13)

 

$

0.02

 

$

0.19

 

$

0.36

 

Adjusted EBITDA

 

$

11,790

 

$

32,089

 

$

89,604

 

$

253,031

 

Adjusted EBITDA margin

 

 

2.6%

 

 

5.3%

 

 

16.0%

 

 

11.1%

 

 

“The challenging environment that began in the second half of last year continued into Q1, resulting in a decline in revenues and earnings.  Our focus on cash generation and strengthening our balance sheet during this period has improved our ability to successfully manage through this cyclical industry downturn,” said Mr. Larrea.

 

 

“The impact of production cuts, announced by ourselves and other producers, has been offset by a significant decline in demand across most of our end markets,” Mr. Larrea added. “We are cautiously optimistic that the markets will begin to improve toward the end of the year as higher cost producers continue to take capacity off-line.”

 

Cash Flow and Balance Sheet

 

Cash provided by operations during Q1 2019 was $8.7 million, with working capital decreasing by $5.0 million. Net debt was $419.7 million as of March 31, 2019, down from $428.7 million as of December 31, 2018.

 

“The change in market sentiment highlights our priority of de-risking the balance sheet.  Continuing in this effort, we are currently pursuing a refinancing of our revolving credit facility in order to remove leverage-based financial covenants, which in tandem with a quarter end cash balance of $216.6 million will provide the Company significant liquidity to endure this cyclical downturn,” commented Phil Murnane, CFO of Ferroglobe. “While our balance sheet is well positioned to see us through the downturn, we are evaluating further capacity curtailments, implementing a new cost cutting plan, and accelerating our cash generating initiatives.”

 

Sale of FerroAtlántica, S.A.U., with its ten hydroelectric facilities and associated ferroalloys plant

 

On June 2, 2019 Ferroglobe entered into a definitive agreement to sell the hydro-electric operations of its non-core energy segment in Spain, together with the Cee-Dumbría ferroalloys factory, for estimated gross cash proceeds of €170 million (approximately $190 million).  Further details on this transaction appear in a separate press release issued concurrently herewith. 

Other recent developments

Ferroglobe is making progress in pursuing financing alternatives and other opportunities to improve its capital structure. The terms, timing and structure of such transaction(s) will depend on market conditions and ongoing discussions in the coming weeks, but the proposed structure would involve a first-lien senior secured term loan secured by U.S. PP&E of up to $125 million and an asset backed loan secured by North American accounts receivable and inventories of up to $140 million. There can be no assurance that any transaction will be consummated, but the Company expects such refinancing to close during the month of June.

“The announced divestiture and the anticipated refinancing of our credit facility will strengthen our balance sheet, resulting in a pro-forma net debt level of around $235 million and significantly improving the Company’s ability to manage through any cyclical downturn,” said Mr. Larrea. “Nevertheless, we continue to focus on deleveraging the company, with a goal of reaching a net debt level below $200 million.”

 

Discussion of First Quarter 2019 Results

 

Sales

 

Sales for Q1 2019 of $456.8 million were 18.5% lower when compared to sales of $560.7 million for Q1 2018. Total shipments were up 3.6% and the average selling price was down 21.9% versus Q1 2018. Sales for Q1 2019 of $456.8 million were down 24.3% when compared to $603.5 million for Q4 2018. For Q1 2019, total shipments were down 23.1% and the average selling price was down 2.0% compared with Q4 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Year Ended

    

 

 

March 31, 2019

 

December 31, 2018

 

Change

 

March 31, 2018

 

Change

 

December 31, 2018

 

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

62,269

 

 

93,364

 

-33.3%

 

 

91,615

 

-32.0%

 

 

352,578

 

Silicon-based Alloys

 

 

81,801

 

 

81,197

 

0.7%

 

 

76,328

 

7.2%

 

 

311,703

 

Manganese-based Alloys

 

 

103,669

 

 

147,445

 

-29.7%

 

 

71,176

 

45.7%

 

 

424,358

 

Total shipments*

 

 

247,739

 

 

322,006

 

-23.1%

 

 

239,119

 

3.6%

 

 

1,088,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,358

 

$

2,429

 

-2.9%

 

$

2,762

 

-14.6%

 

$

2,647

 

Silicon-based Alloys

 

$

1,669

 

$

1,719

 

-2.9%

 

$

1,956

 

-14.7%

 

$

1,845

 

Manganese-based Alloys

 

$

1,172

 

$

1,158

 

1.2%

 

$

1,375

 

-14.8%

 

$

1,244

 

Total*

 

$

1,634

 

$

1,668

 

-2.0%

 

$

2,092

 

-21.9%

 

$

1,870

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

1.07

 

$

1.10

 

-2.9%

 

$

1.25

 

-14.6%

 

$

1.20

 

Silicon-based Alloys

 

$

0.76

 

$

0.78

 

-2.9%

 

$

0.89

 

-14.7%

 

$

0.84

 

Manganese-based Alloys

 

$

0.53

 

$

0.53

 

1.2%

 

$

0.62

 

-14.8%

 

$

0.56

 

Total*

 

$

0.74

 

$

0.76

 

-2.0%

 

$

0.95

 

-21.9%

 

$

0.85

 


* Excludes by-products and other

 

Sales Prices & Volumes By Product

 

During Q1 2019, average selling prices decreased by 2.0% for total products as compared to Q4 2018.  Q1 average selling prices of silicon metal decreased 2.9%, silicon-based alloys decreased 2.9%, and manganese-based alloys increased 1.2%. During Q1 2019, sales volumes decreased by 23.1% as compared to Q4 2018.  Q1 sales volumes of silicon metal decreased 33.3%, silicon-based alloys increased 0.7%, and manganese-based alloys decreased 29.7% as compared to Q4 2018.

 

Cost of Sales

 

Cost of sales was $329.5 million in Q1 2019, a decrease from $448.3 million in Q4 2018.  Cost of sales as a percentage of sales decreased to 72.1% in Q1 2019 from 74.3% for Q4 2018.

 

Staff Costs

 

Staff costs was $74.8 million in Q1 2019, a decrease from $81.2 million in Q4 2018, primarily due to the reduction of wages as a result of the idling of Niagara Falls, New York and Selma, Alabama plants. 

 

Operating Loss

 

Operating loss was $(20.3) million in Q1 2019 compared to an operating loss of $(63.6) million in Q4 2018. Q4 2018 operating loss included $58.9 million of impairment losses and a reduction of the bargain purchase gain relating to the acquisition of the manganese smelting assets at Dunkirk and Mo i Rana of $4.5 million. 

 

Net Loss Attributable to the Parent

 

In Q1 2019, net loss attributable to the Parent was $(26.8) million, or $(0.16) per diluted share, compared to a net loss attributable to the Parent of $(59.2) million, or ($0.35) per diluted share in Q4 2018.

 

 

 

 

 

Adjusted EBITDA

 

In Q1 2019, adjusted EBITDA was $11.8 million, or 2.6% of sales, compared to adjusted EBITDA of $32.1 million, or 5.3% of sales in Q4 2018.

 

Conference Call

 

Ferroglobe management will review the first quarter results of 2019 during a conference call at 9:00 a.m. Eastern Time on June 4, 2019.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 2180878). International callers should dial +1 914‑495‑8526 (conference ID 2180878). 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/3578ay6h.

 

About Ferroglobe

 

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and other ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

 

Forward-Looking Statements

 

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “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 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:

 

Gaurav Mehta

EVP – Investor Relations

Email:   investor.relations@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

    

 

    

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

December 31, 2018

 

Sales

  

$

456,790

 

$

603,519

 

$

560,704

 

$

2,274,038

 

Cost of sales

  

 

(329,492)

 

 

(448,333)

 

 

(320,678)

 

 

(1,447,354)

 

Other operating income

  

 

14,083

 

 

25,039

 

 

6,786

 

 

46,037

 

Staff costs

  

 

(74,757)

 

 

(81,230)

 

 

(82,423)

 

 

(341,064)

 

Other operating expense

  

 

(54,297)

 

 

(73,160)

 

 

(70,862)

 

 

(283,930)

 

Depreciation and amortization charges, operating allowances and write-downs

  

 

(32,077)

 

 

(30,062)

 

 

(28,016)

 

 

(119,137)

 

Bargain purchase gain

 

 

 —

 

 

(4,491)

 

 

 —

 

 

40,142

 

Impairment losses

 

 

(140)

 

 

(58,919)

 

 

 —

 

 

(58,919)

 

Other (loss) gain

 

 

(397)

 

 

4,005

 

 

(37)

 

 

6,941

 

Operating (loss) profit

 

 

(20,287)

 

 

(63,632)

 

 

65,474

 

 

116,754

 

Net finance expense

  

 

(14,756)

 

 

(15,128)

 

 

(13,156)

 

 

(56,648)

 

Financial derivatives gain (loss)

 

 

1,264

 

 

1,383

 

 

(1,765)

 

 

2,838

 

Exchange differences

  

 

(1,479)

 

 

(3,086)

 

 

729

 

 

(14,136)

 

(Loss) profit before tax

  

 

(35,258)

 

 

(80,463)

 

 

51,282

 

 

48,808

 

Income tax benefit (expense)

  

 

6,704

 

 

6,308

 

 

(15,668)

 

 

(24,235)

 

(Loss) profit for the period

 

 

(28,554)

 

 

(74,155)

 

 

35,614

 

 

24,573

 

Loss attributable to non-controlling interest

  

 

1,724

 

 

14,943

 

 

1,066

 

 

19,088

 

(Loss) profit attributable to the parent

  

$

(26,830)

 

$

(59,212)

 

$

36,680

 

$

43,661

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

11,790

 

$

(33,570)

 

$

93,490

 

$

235,891

 

Adjusted EBITDA

 

$

11,790

 

$

32,089

 

$

89,604

 

$

253,031

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

170,183

 

 

170,183

 

 

171,977

 

 

171,406

 

Diluted

 

 

170,183

 

 

170,183

 

 

172,215

 

 

171,530

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.16)

 

$

(0.35)

 

$

0.21

 

$

0.25

 

Diluted

 

$

(0.16)

 

$

(0.35)

 

$

0.21

 

$

0.25

 

 

 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

March 31,

 

    

2019

    

2018

    

2018

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

203,472

 

$

202,848

 

$

204,537

Other intangible assets

 

 

 

69,399

 

 

51,822

 

 

61,774

Property, plant and equipment

 

 

 

890,436

 

 

888,862

 

 

980,101

Non-current financial assets

 

 

 

54,979

 

 

70,343

 

 

147,744

Deferred tax assets

 

 

 

7,135

 

 

14,589

 

 

6,581

Non-current receivables from related parties

 

 

 

2,247

 

 

2,288

 

 

2,464

Other non-current assets

 

 

 

10,435

 

 

10,486

 

 

32,125

Total non-current assets

 

 

 

1,238,103

 

 

1,241,238

 

 

1,435,326

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

451,753

 

 

456,970

 

 

493,108

Trade and other receivables

 

 

 

127,992

 

 

155,996

 

 

142,641

Current receivables from related parties

 

 

 

6,556

 

 

14,226

 

 

8,841

Current income tax assets

 

 

 

26,855

 

 

27,404

 

 

6,524

Current financial assets

 

 

 

2,191

 

 

2,523

 

 

897

Other current assets

 

 

 

13,721

 

 

8,813

 

 

16,095

Cash and cash equivalents

 

 

 

216,627

 

 

216,647

 

 

197,669

Total current assets

 

 

 

845,695

 

 

882,579

 

 

865,775

Total assets

 

$

 

2,083,798

 

$

2,123,817

 

$

2,301,101

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

855,099

 

$

884,372

 

$

979,504

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

11,676

 

 

1,434

 

 

7,321

Provisions

 

 

 

76,613

 

 

75,787

 

 

82,957

Bank borrowings

 

 

 

131,366

 

 

132,821

 

 

71,242

Lease liabilities

 

 

 

66,992

 

 

53,472

 

 

68,101

Debt instruments

 

 

 

342,222

 

 

341,657

 

 

341,036

Other financial liabilities

 

 

 

27,109

 

 

32,788

 

 

58,288

Other non-current liabilities

 

 

 

25,080

 

 

25,030

 

 

64,457

Deferred tax liabilities

 

 

 

61,887

 

 

77,379

 

 

64,733

Total non-current liabilities

 

 

 

742,945

 

 

740,368

 

 

758,135

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

47,619

 

 

40,570

 

 

30,162

Bank borrowings

 

 

 

19,100

 

 

8,191

 

 

850

Lease liabilities

 

 

 

20,616

 

 

12,999

 

 

13,478

Debt instruments

 

 

 

2,734

 

 

10,937

 

 

2,735

Other financial liabilities

 

 

 

51,618

 

 

52,524

 

 

91,243

Payables to related parties

 

 

 

12,199

 

 

11,128

 

 

10,671

Trade and other payables

 

 

 

228,649

 

 

256,823

 

 

298,438

Current income tax liabilities

 

 

 

4,369

 

 

2,335

 

 

5,889

Other current liabilities

 

 

 

98,850

 

 

103,570

 

 

109,996

Total current liabilities

 

 

 

485,754

 

 

499,077

 

 

563,462

Total equity and liabilities

 

$

 

2,083,798

 

$

2,123,817

 

$

2,301,101

 

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Cash Flows

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

 

Year Ended

    

 

    

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

 

December 31, 2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(28,554)

 

$

(74,155)

 

$

35,614

 

 

$

24,573

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

(6,704)

 

 

(6,308)

 

 

15,668

 

 

 

24,235

 

Depreciation and amortization charges,
operating allowances and write-downs

 

 

32,077

 

 

30,062

 

 

28,016

 

 

 

119,137

 

Net finance expense

 

 

14,756

 

 

15,128

 

 

13,156

 

 

 

56,648

 

Financial derivatives (gain) loss

 

 

(1,264)

 

 

(1,383)

 

 

1,765

 

 

 

(2,838)

 

Exchange differences

 

 

1,479

 

 

3,086

 

 

(729)

 

 

 

14,136

 

Impairment losses

 

 

140

 

 

58,919

 

 

 —

 

 

 

58,919

 

Bargain purchase gain

 

 

 —

 

 

4,491

 

 

 —

 

 

 

(40,142)

 

Share-based compensation

 

 

1,332

 

 

1,016

 

 

699

 

 

 

2,798

 

Other adjustments

 

 

397

 

 

(4,005)

 

 

37

 

 

 

(6,941)

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Decrease (increase) in inventories

 

 

35

 

 

91,173

 

 

(107,481)

 

 

 

(101,024)

 

Decrease (increase) in trade receivables

 

 

28,371

 

 

(12,261)

 

 

(513)

 

 

 

(25,807)

 

(Decrease) increase in trade payables

 

 

(22,967)

 

 

5,772

 

 

70,375

 

 

 

55,410

 

Other

 

 

9,787

 

 

6,509

 

 

(49,770)

 

 

 

(25,901)

 

Income taxes paid

 

 

(1,680)

 

 

(6,983)

 

 

(9,982)

 

 

 

(36,408)

 

Interest paid

 

 

(18,508)

 

 

(4,360)

 

 

(17,301)

 

 

 

(43,018)

 

Net cash provided (used) by operating activities

 

 

8,697

 

 

106,701

 

 

(20,446)

 

 

 

73,777

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and finance income received

 

 

390

 

 

843

 

 

79

 

 

 

3,833

 

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of subsidiary

 

 

 —

 

 

 —

 

 

(20,379)

 

 

 

(20,379)

 

Other intangible assets

 

 

(134)

 

 

(240)

 

 

(703)

 

 

 

(3,313)

 

Property, plant and equipment

 

 

(13,448)

 

 

(28,131)

 

 

(22,531)

 

 

 

(106,136)

 

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposal of subsidiary

 

 

 —

 

 

20,533

 

 

 —

 

 

 

20,533

 

Other non-current assets

 

 

 —

 

 

 —

 

 

 —

 

 

 

12,734

 

Other

 

 

1,759

 

 

 —

 

 

4,010

 

 

 

6,853

 

Net cash used by investing activities

 

 

(11,433)

 

 

(6,995)

 

 

(39,524)

 

 

 

(85,875)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 —

 

 

 —

 

 

 —

 

 

 

(20,642)

 

Payment for debt issuance costs

 

 

(705)

 

 

(429)

 

 

(4,476)

 

 

 

(4,905)

 

Repayment of other financial liabilities

 

 

 —

 

 

 —

 

 

 —

 

 

 

(33,096)

 

Increase/(decrease) in bank borrowings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Borrowings

 

 

31,850

 

 

6,882

 

 

182,364

 

 

 

252,200

 

Payments

 

 

(20,811)

 

 

 —

 

 

(106,514)

 

 

 

(106,514)

 

Proceeds from stock option exercises

 

 

 —

 

 

 —

 

 

 —

 

 

 

240

 

Other amounts paid due to financing activities

 

 

(5,708)

 

 

(3,178)

 

 

(2,987)

 

 

 

(13,880)

 

Payments to acquire or redeem own shares

 

 

 —

 

 

(16,598)

 

 

 —

 

 

 

(20,100)

 

Net cash provided (used) by financing activities

 

 

4,626

 

 

(13,323)

 

 

68,387

 

 

 

53,303

 

Total net cash flows for the period

 

 

1,890

 

 

86,383

 

 

8,417

 

 

 

41,205

 

Beginning balance of cash and cash equivalents

 

 

216,647

 

 

131,671

 

 

184,472

 

 

 

184,472

 

Exchange differences on cash and
cash equivalents in foreign currencies

 

 

(1,910)

 

 

(1,407)

 

 

4,780

 

 

 

(9,030)

 

Ending balance of cash and cash equivalents

 

$

216,627

 

$

216,647

 

$

197,669

 

 

$

216,647

 

 

 

Adjusted EBITDA ($,000):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

Year Ended

    

 

    

March 31, 2019

 

December 31, 2018

 

March 31, 2018

 

December 31, 2018

 

(Loss) profit attributable to the parent

 

$

(26,830)

 

$

(59,212)

 

$

36,680

 

$

43,661

 

Loss attributable to non-controlling interest

 

 

(1,724)

 

 

(14,943)

 

 

(1,066)

 

 

(19,088)

 

Income tax (benefit) expense

 

 

(6,704)

 

 

(6,308)

 

 

15,668

 

 

24,235

 

Net finance expense

 

 

14,756

 

 

15,128

 

 

13,156

 

 

56,648

 

Financial derivatives (gain) loss

 

 

(1,264)

 

 

(1,383)

 

 

1,765

 

 

(2,838)

 

Exchange differences

 

 

1,479

 

 

3,086

 

 

(729)

 

 

14,136

 

Depreciation and amortization charges, operating allowances and write-downs

 

 

32,077

 

 

30,062

 

 

28,016

 

 

119,137

 

EBITDA

 

 

11,790

 

 

(33,570)

 

 

93,490

 

 

235,891

 

Impairment

 

 

 —

 

 

65,300

 

 

 —

 

 

65,300

 

Revaluation of biological assets

 

 

 —

 

 

7,615

 

 

 —

 

 

7,615

 

Bargain purchase gain

 

 

 —

 

 

4,491

 

 

 —

 

 

(40,142)

 

Gain on sale of hydro plant assets

 

 

 —

 

 

(11,747)