Q4_19_Earnings 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 March, 2020

 

Commission File Number: 001-37668

 

FERROGLOBE PLC

(Name of Registrant)

 

5 Fleet Place

London, EC4M7RD

(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 March 2, 2020 announcing results for the quarter and year ended December  31, 2019

·

Fourth quarter and year-end earnings call presentation

 

Ferroglobe Reports Results for Fourth Quarter and Full Year 2019

 

Adjusted EBITDA of $(38.1) million in Q4 2019 and of $(37.0) million in Full Year 2019

 

·

Q4 2019 results:

·

Sales of $364.4 million compared to $381.7 million in Q3 2019, and $591.1 million in Q4 2018

·

Net loss of $(75.7) million compared to $(140.1) million in Q3 2019, and $(74.2) million in Q4 2018

·

Adjusted EBITDA of $(38.1) million compared to $(7.2) million in Q3 2019 and $23.2 million in Q4 2018

·

Full Year 2019 results:

·

Sales of $1.60 billion compared to $2.24 billion in 2018

·

Net loss of $(288.1) million, including a goodwill impairment charge of $174.0 million, compared to a net profit of $24.6 million in 2018

·

Adjusted net loss attributable to Parent of $(114.0) million compared to a net profit of $64.4 million in 2018

·

Adjusted EBITDA of $(37.0) million in 2019 compared to $230.1 million in 2018

·

Gross debt of $481 million at the end of Q4 2019, compared to $556 million at the end of Q3 2019

·

Successful refinancings, providing additional financial flexibility and liquidity

·

North American asset-based revolving credit facility closed on October 11, 2019

·

European accounts receivable securitization program closed on December 10, 2019

·

Operational changes implemented to the global production platform: adapting production to reduced demand and decreasing inventory levels

 

LONDON, March 2, 2020 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (throughout, “Ferroglobe”, the “Company”, or the “Parent”), a  leading producer globally of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, today announced results for the fourth quarter and the full year 2019.

 

Q4 2019 Earnings Highlights

 

In Q4 2019, Ferroglobe posted a net loss of $(75.7) million, or $(0.44) per share on a fully diluted basis. On an adjusted basis, Q4 2019 net loss was $(53.8) million, or $(0.32) per share on a fully diluted basis.

 

Q4 2019 reported EBITDA was $(56.2) million, up from $(183.1) million in the prior quarter. On an adjusted basis, Q4 2019 EBITDA was $(38.1) million, down from Q3 2019 adjusted EBITDA of $(7.2) million. The Company reported an adjusted EBITDA margin of -10.5% for Q4 2019, compared to an adjusted EBITDA margin of -1.9% for Q3 2019. 

 

Full Year 2019 Earnings Highlights

 

For Full Year 2019, Ferroglobe posted a net loss of $(288.1) million, or $(1.67) per share. On an adjusted basis, Full Year 2019 net loss was $(114.0) million, or $(0.68) per share.

 

For the Full Year 2019, reported EBITDA was $(243.1) million, versus $212.9 million in the prior year. Full Year 2019 Adjusted EBITDA was $(37.0) million, versus $230.1 million in the prior year. The Company reported an adjusted EBITDA margin of -2.3% for Full Year 2019, compared to an adjusted EBITDA margin of 10.3% for Full Year 2018.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Year Ended

    

Year Ended

$,000 (unaudited)

 

December 31, 2019

 

September 30, 2019

 

December 31, 2018 *

 

December 31, 2019

 

December 31, 2018 *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

364,431

 

$

381,745

 

$

591,052

 

$

1,603,046

 

$

2,242,002

Net (loss) profit

 

$

(75,746)

 

$

(140,139)

 

$

(74,155)

 

$

(288,097)

 

$

24,573

Diluted EPS

 

$

(0.44)

 

$

(0.83)

 

$

(0.34)

 

$

(1.67)

 

$

0.25

Adjusted net (loss) income attributable to the parent

 

$

(53,801)

 

$

(16,085)

 

$

5,205

 

$

(113,998)

 

$

64,392

Adjusted diluted EPS

 

$

(0.32)

 

$

(0.10)

 

$

0.03

 

$

(0.68)

 

$

0.36

Adjusted EBITDA

 

$

(38,132)

 

$

(7,210)

 

$

23,184

 

$

(36,980)

 

$

230,051

Adjusted EBITDA margin

 

 

-10.5%

 

 

-1.9%

 

 

3.9%

 

 

-2.3%

 

 

10.3%

 

*  Throughout the results, the amounts for prior periods have been restated to reflect the impact of the profit / (loss) from discontinued operations associated with the sale of FerroAtlántica S.A.U., owner of the Cee-Dumbria plant and  hydroelectric assets in Spain.

 

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “The Company’s disappointing fourth quarter results are representative of the challenges faced throughout 2019.  We experienced continued pricing and volume pressures during the quarter, with increased costs as a result of the previously announced operational curtailments.  To mitigate the impact of these challenges, we successfully executed a number of cash generating initiatives, selling non-core assets, reducing inventory and releasing cash through the refinancing of the Company’s accounts receivable securitization program.  Given these headwinds and their impact on our balance sheet, a new strategic plan is being developed aimed at returning the Company to profitability.”

 

Cash Flow and Balance Sheet

 

Cash generated from operations during Q4 2019 was $45.5 million, with working capital positively impacted by a decrease in inventories,  offset by a decrease in payables. Working capital decreased from $579 million as of September 30, 2019 to $481 million at December 31, 2019.

 

Gross debt was $481 million as of December 31, 2019, down significantly from $556 million as of September 30, 2019, primarily as a result of refinancing the Company’s former revolving credit facility (“RCF”).

 

Recent developments

 

On October 4, 2019, Ferroglobe subsidiary, Silicon Smelters (Pty.) Ltd. completed the sale of its remaining timberlands in South Africa for net proceeds of ZAR 130 million ($8.58 million).

 

On October 11, 2019, Ferroglobe completed the closing of a new five-year, $100 million North American asset-based revolving loan (“ABL”), with an initial draw of $70 million, which was used, along with cash on hand, to repay in full the RCF. This marked an important step in the Company’s overall strategy to de-risk the balance sheet, as the ABL has no leverage-based or financial-based covenants and has reduced liquidity requirements as compared to the RCF, affording the Company enhanced flexibility.

 

On December 10, 2019, Ferroglobe refinanced its prior accounts receivable securitization program with a new two-year, $150 million European program (“new A/R Program”), of which $104 million was utilized at closing. Subsequently, the incorporation of a special purpose vehicle (“SPV”) into the program resulted in significant additional receivables qualifying into the program.

 

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “The successful closing of the new A/R Program has a significant impact on our cash conversion in Europe.  At closing, approximately $23 million of cash was released and another $31.5 million was released on incorporation of the SPV in February 2020.  These steps highlight the Company’s continued efforts to optimize the business operationally and financially.”

 

COVID-19

 

Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “ To date our business has not been directly impacted by the coronavirus. However, given the increasing concerns around the spreading of this virus globally, we continue to monitor the potential impact on our business very closely.”

 

Subsequent Event

 

On January 13, 2020, Ferroglobe appointed Dr. Marco Levi as its Chief Executive Officer (“CEO”). As CEO, Dr. Levi was subsequently appointed to the Company’s Board of Directors on January 15, 2020, bringing the number of Directors on the Board to nine. 

 

Discussion of Fourth Quarter 2019 Results

 

Sales

 

Sales for Q4 2019 were $364.4 million, a decrease of 4.5% compared to $381.7 million in Q3 2019. For Q4 2019, total shipments were down 1.2% and the average selling price was down 3.5% compared with Q3 2019. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Year Ended

    

Year Ended

 

 

 

 

December 31, 2019

 

September 30, 2019

 

Change

 

December 31, 2018

 

Change

 

December 31, 2019

 

December 31, 2018

 

Change

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

61,613

 

 

60,225

 

2.3%

 

 

93,364

 

-34.0%

 

 

238,192

 

 

352,578

 

-32.4%

Silicon-based Alloys

 

 

64,485

 

 

69,879

 

-7.7%

 

 

81,197

 

-20.6%

 

 

295,429

 

 

311,703

 

-5.2%

Manganese-based Alloys

 

 

95,235

 

 

93,996

 

1.3%

 

 

147,445

 

-35.4%

 

 

392,456

 

 

424,358

 

-7.5%

Total shipments*

 

 

221,333

 

 

224,100

 

-1.2%

 

 

322,006

 

-31.3%

 

 

926,077

 

 

1,088,639

 

-14.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,175

 

$

2,175

 

0.0%

 

$

2,429

 

-10.5%

 

$

2,256

 

$

2,647

 

-14.8%

Silicon-based Alloys

 

$

1,424

 

$

1,490

 

-4.4%

 

$

1,719

 

-17.2%

 

$

1,547

 

$

1,845

 

-16.2%

Manganese-based Alloys

 

$

1,054

 

$

1,140

 

-7.5%

 

$

1,158

 

-9.0%

 

$

1,140

 

$

1,244

 

-8.4%

Total*

 

$

1,474

 

$

1,527

 

-3.5%

 

$

1,668

 

-11.6%

 

$

1,557

 

$

1,870

 

-16.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

0.99

 

$

0.99

 

0.0%

 

$

1.10

 

-10.5%

 

$

1.02

 

$

1.20

 

-14.8%

Silicon-based Alloys

 

$

0.65

 

$

0.68

 

-4.4%

 

$

0.78

 

-17.2%

 

$

0.70

 

$

0.84

 

-16.2%

Manganese-based Alloys

 

$

0.48

 

$

0.52

 

-7.5%

 

$

0.53

 

-9.0%

 

$

0.52

 

$

0.56

 

-8.4%

Total*

 

$

0.67

 

$

0.69

 

-3.5%

 

$

0.76

 

-11.6%

 

$

0.71

 

$

0.85

 

-16.8%


* Excludes by-products and other

 

Sales Prices & Volumes By Product

 

During Q4 2019, total product average selling prices decreased by 3.5% versus Q3 2019.  Q4 average selling prices of silicon metal remained unchanged, silicon-based alloys prices decreased  4.4%, and manganese-based alloys prices decreased  7.5%.  

 

Sales volumes in Q4 declined by 1.2% versus the prior quarter.  Q4 sales volumes of silicon metal increased 2.3%, silicon-based alloys decreased 7.7%, and manganese-based alloys increased 1.3% versus Q4 2019.

 

Cost of Sales

 

Cost of sales was $300.6 million in Q4 2019, an increase from $277.7 million in the prior quarter. Cost of sales as a percentage of sales increased to 82.5% in Q4 2019 versus 72.8% for Q3 2019, linked primarily to product mix, costs associated with implementing the temporary curtailments to our operations, and inventory write downs across our product portfolio.

 

Other Operating Expenses

 

Other operating expenses was $58.8 million in Q4 2019, an increase from $50.1 million in the prior quarter. This increase is primarily attributable to non recurrent costs associated with the energy contracts at plants in Europe temporarily idled.

 

Net Loss Attributable to the Parent

 

In Q4 2019, net loss attributable to the Parent was $74.5 million, or $(0.44) per diluted share, compared to a net loss attributable to the Parent of $140.5 million, or $(0.83) per diluted share in Q3 2019.

 

Adjusted EBITDA

 

In Q4 2019, adjusted EBITDA was $(38.1) million, or -10.5% of sales, compared to adjusted EBITDA of $(7.2) million, or   -1.9% of sales in Q3 2019, primarily due to weaker pricing and costs incurred in Q4 2019.

 

Conference Call

 

Ferroglobe management will review the fourth quarter and full year results of 2019 during a conference call at 9:00 a.m. Eastern Time on March 3, 2020.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 4987662). International callers should dial +1 914‑495‑8526 (conference ID 4987662). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/mmc/p/ci6ip3a5.

 

About Ferroglobe

 

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

 

Forward-Looking Statements

 

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

 

Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.

 

Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

 

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

 

Non-IFRS Measures

 

Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

 

INVESTOR CONTACT:

Gaurav Mehta
EVP – Investor Relations 
Email:   
investor.relations@ferroglobe.com

 

Louie Toma

Managing Director

Hayden IR

Tel:       1-774-291-6000

Email:   louie@haydenir.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, 2019

 

September 30, 2019

 

December 31, 2018*

 

December 31, 2019

 

December 31, 2018*

Sales

  

$

364,431

 

$

381,745

 

$

591,052

 

$

1,603,046

 

$

2,242,002

Cost of sales

  

 

(300,611)

 

 

(277,692)

 

 

(448,048)

 

 

(1,200,103)

 

 

(1,446,677)

Other operating income

  

 

8,428

 

 

13,215

 

 

24,919

 

 

50,194

 

 

45,844

Staff costs

  

 

(69,490)

 

 

(72,536)

 

 

(80,656)

 

 

(291,141)

 

 

(338,862)

Other operating expense

  

 

(58,826)

 

 

(50,060)

 

 

(70,337)

 

 

(225,727)

 

 

(277,560)

Depreciation and amortization charges, operating allowances and write-downs

  

 

(30,016)

 

 

(29,591)

 

 

(28,345)

 

 

(120,181)

 

 

(113,837)

Bargain purchase gain

 

 

 —

 

 

 —

 

 

(4,491)

 

 

 —

 

 

40,142

Other gain (loss)

 

 

390

 

 

(3,774)

 

 

4,005

 

 

(3,506)

 

 

6,941

Operating (loss) profit before impairment losses

 

 

(85,694)

 

 

(38,693)

 

 

(11,901)

 

 

(187,418)

 

 

157,993

Impairment losses

 

 

(546)

 

 

(174,018)

 

 

(58,919)

 

 

(175,899)

 

 

(58,919)

Operating (loss) profit

 

 

(86,240)

 

 

(212,711)

 

 

(70,820)

 

 

(363,317)

 

 

99,074

Net finance expense

  

 

(16,496)

 

 

(16,491)

 

 

(13,915)

 

 

(61,857)

 

 

(52,207)

Financial derivatives (loss) gain

 

 

(1,153)

 

 

2,913

 

 

1,383

 

 

2,729

 

 

2,838

Exchange differences

  

 

4,341

 

 

(5,083)

 

 

(3,086)

 

 

2,859

 

 

(14,136)

(Loss) profit before tax

  

 

(99,548)

 

 

(231,372)

 

 

(86,438)

 

 

(419,586)

 

 

35,569

Income tax benefit (expense)

  

 

22,710

 

 

14,322

 

 

7,891

 

 

50,132

 

 

(20,459)

(Loss) profit for the period from continuing operations

 

 

(76,838)

 

 

(217,050)

 

 

(78,547)

 

 

(369,454)

 

 

15,110

Profit for the period from discontinued operations

 

 

1,092

 

 

76,911

 

 

4,392

 

 

81,357

 

 

9,463

(Loss) profit for the period

 

 

(75,746)

 

 

(140,139)

 

 

(74,155)

 

 

(288,097)

 

 

24,573

Loss (profit) attributable to non-controlling interest

  

 

1,240

 

 

(385)

 

 

14,943

 

 

5,414

 

 

19,088

(Loss) profit attributable to the parent

  

$

(74,506)

 

$

(140,524)

 

$

(59,212)

 

$

(282,683)

 

$

43,661

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

(56,224)

 

$

(183,120)

 

$

(42,475)

 

$

(243,136)

 

$

212,911

Adjusted EBITDA

 

$

(38,132)

 

$

(7,210)

 

$

23,184

 

$

(36,980)

 

$

230,051

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

169,182

 

 

169,123

 

 

171,935

 

 

169,153

 

 

171,966

Diluted

 

 

169,182

 

 

169,123

 

 

171,935

 

 

169,153

 

 

172,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.44)

 

$

(0.83)

 

$

(0.34)

 

$

(1.67)

 

$

0.25

Diluted

 

$

(0.44)

 

$

(0.83)

 

$

(0.34)

 

$

(1.67)

 

$

0.25

 

* The amounts for prior periods have been restated to reflect the impact of the profit / (loss) from discontinued operations associated with the sale of the Company’s Spanish hydroelectric plants

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

September 30,

 

December 31,

 

    

2019

    

2019

    

2018

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

29,702

 

$

29,702

 

$

202,848

Other intangible assets

 

 

 

58,781

 

 

63,980

 

 

51,822

Property, plant and equipment

 

 

 

741,236

 

 

742,752

 

 

888,862

Other non-current financial assets

 

 

 

2,601

 

 

3,381

 

 

70,343

Deferred tax assets

 

 

 

36,387

 

 

50,214

 

 

14,589

Non-current receivables from related parties

 

 

 

2,247

 

 

2,178

 

 

2,288

Other non-current assets

 

 

 

1,598

 

 

1,780

 

 

10,486

Non-current restricted cash and cash equivalents

 

 

 

28,323

 

 

10,889

 

 

 —

Total non-current assets

 

 

 

900,875

 

 

904,876

 

 

1,241,238

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

360,340

 

 

479,866

 

 

456,970

Trade and other receivables

 

 

 

302,321

 

 

332,603

 

 

155,996

Current receivables from related parties

 

 

 

2,955

 

 

2,839

 

 

14,226

Current income tax assets

 

 

 

36,508

 

 

41,649

 

 

27,404

Other current financial assets

 

 

 

5,544

 

 

1,660

 

 

2,523

Other current assets

 

 

 

14,457

 

 

12,157

 

 

8,813

Cash and cash equivalents *

 

 

 

99,235

 

 

177,154

 

 

216,647

Assets and disposal groups classified as held for sale

 

 

 

 —

 

 

8,507

 

 

 —

Total current assets

 

 

 

821,360

 

 

1,056,435

 

 

882,579

Total assets

 

$

 

1,722,235

 

$

1,961,311

 

$

2,123,817

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

599,437

 

$

664,300

 

$

884,372

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

1,592

 

 

4,061

 

 

1,434

Provisions

 

 

 

86,354

 

 

78,272

 

 

75,787

Bank borrowings

 

 

 

144,388

 

 

130,622

 

 

132,821

Lease liabilities

 

 

 

16,972

 

 

16,417

 

 

53,472

Debt instruments

 

 

 

344,014

 

 

343,400

 

 

341,657

Other financial liabilities

 

 

 

15,829

 

 

10,307

 

 

32,788

Other non-current liabilities

 

 

 

29,170

 

 

29,982

 

 

25,030

Deferred tax liabilities

 

 

 

52,557

 

 

82,192

 

 

77,379

Total non-current liabilities

 

 

 

690,876

 

 

695,253

 

 

740,368

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

52,398

 

 

51,667

 

 

40,570

Bank borrowings

 

 

 

14,611

 

 

130,272

 

 

8,191

Lease liabilities

 

 

 

8,900

 

 

8,218

 

 

12,999

Debt instruments

 

 

 

10,937

 

 

2,734

 

 

10,937

Other financial liabilities

 

 

 

50,710

 

 

49,978

 

 

52,524

Payables to related parties

 

 

 

4,830

 

 

9,160

 

 

11,128

Trade and other payables

 

 

 

181,545

 

 

233,811

 

 

256,823

Current income tax liabilities

 

 

 

1,736

 

 

11,173

 

 

2,335

Other current liabilities

 

 

 

106,255

 

 

104,745

 

 

103,570

Liabilities associated with assets classified as held for sale

 

 

 

 —

 

 

 —

 

 

 —

Total current liabilities

 

 

 

431,922

 

 

601,758

 

 

499,077

Total equity and liabilities

 

$

 

1,722,235

 

$

1,961,311

 

$

2,123,817

 

*Cash and cash equivalents at December 31, 2019 includes the cash balance of the A/R securitization program of $38,778 ($9,088 and $nil at September 30, 2019 and December 31, 2018, respectively)

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

    

Year Ended

 

    

December 31, 2019

 

September 30, 2019

 

December 31, 2018

 

 

December 31, 2019

 

December 31, 2018

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(75,746)

 

$

(140,139)

 

$

(74,155)

 

 

$

(288,097)

 

$

24,573

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

(22,710)

 

 

(14,489)

 

 

(6,310)

 

 

 

(49,118)

 

 

24,233

Depreciation and amortization charges,
operating allowances and write-downs

 

 

30,016

 

 

29,591

 

 

30,062

 

 

 

123,011

 

 

119,137

Net finance expense

 

 

16,496

 

 

20,893

 

 

15,128

 

 

 

68,290

 

 

56,648

Financial derivatives loss (gain)

 

 

1,154

 

 

(2,913)

 

 

(1,383)

 

 

 

(2,728)

 

 

(2,838)

Exchange differences

 

 

(4,341)

 

 

5,083

 

 

3,088

 

 

 

(2,859)

 

 

14,138

Impairment losses

 

 

546

 

 

174,018

 

 

58,919

 

 

 

175,899

 

 

58,919

Bargain purchase gain

 

 

 —

 

 

 —

 

 

4,491

 

 

 

 —

 

 

(40,142)

Gain on disposal of discontinued operation

 

 

1,107

 

 

(80,729)

 

 

 —

 

 

 

(79,622)

 

 

 —

Share-based compensation

 

 

1,599

 

 

1,015

 

 

1,016

 

 

 

4,879

 

 

2,798

Other adjustments

 

 

(390)

 

 

3,774

 

 

(4,006)

 

 

 

3,506

 

 

(6,942)

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease  in inventories

 

 

126,422

 

 

5,953

 

 

91,180

 

 

 

85,460

 

 

(101,017)

(Increase) decrease in trade receivables

 

 

34,036

 

 

5,568

 

 

(12,261)

 

 

 

35,659

 

 

(25,807)

Increase (decrease) in trade payables

 

 

(58,816)

 

 

(10,693)

 

 

5,772

 

 

 

(70,851)

 

 

55,410

Other

 

 

(869)

 

 

(59,689)

 

 

6,508

 

 

 

(22,299)

 

 

(25,901)

Income taxes paid

 

 

(523)

 

 

(846)

 

 

(6,983)

 

 

 

(3,589)

 

 

(36,408)

Interest paid

 

 

(2,471)

 

 

(18,713)

 

 

(4,360)

 

 

 

(43,033)

 

 

(43,018)

Net cash (used) provided by operating activities

 

 

45,510

 

 

(82,316)

 

 

106,706

 

 

 

(65,492)

 

 

73,783

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and finance income received

 

 

171

 

 

626

 

 

843

 

 

 

1,673

 

 

3,833

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of subsidiary

 

 

 —

 

 

9,088

 

 

 —

 

 

 

9,088

 

 

(20,379)

Other intangible assets

 

 

 —

 

 

 —

 

 

(240)

 

 

 

(184)

 

 

(3,313)

Property, plant and equipment

 

 

(5,885)

 

 

(6,269)

 

 

(28,131)

 

 

 

(32,730)

 

 

(106,136)

Other

 

 

(621)

 

 

 —

 

 

 —

 

 

 

(1,248)

 

 

(8)

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposal of subsidiaries

 

 

1,111

 

 

171,058

 

 

20,533

 

 

 

172,169

 

 

20,533

Other non-current assets

 

 

8,668

 

 

 —

 

 

 —

 

 

 

8,668

 

 

12,734

Other

 

 

353

 

 

19

 

 

 —

 

 

 

3,769

 

 

6,861

Net cash used by investing activities

 

 

3,797

 

 

174,522

 

 

(6,995)

 

 

 

161,205

 

 

(85,875)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

 

 

(20,642)

Payment for debt issuance costs

 

 

(12,319)

 

 

(2,093)

 

 

(429)

 

 

 

(15,117)

 

 

(4,905)

Repayment of hydro leases

 

 

 —

 

 

(55,352)

 

 

 —

 

 

 

(55,352)

 

 

 —

Repayment of other financial liabilities

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —