Q1_20_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 June, 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 June 8, 2020 announcing results for the quarter ended March  31, 2020

·

First quarter earnings call presentation

 

Ferroglobe Reports Results for the First Quarter of 2020

 

Sales of $311.2 million; Net loss of $(49.1) million; Adjusted EBITDA of $(17.6) million

 

 

·

Q1 sales of $311.2 million compared to $376.6 million in Q4 2019, and $447.4 million in Q1 2019

·

Q1 net loss of $(49.1) million compared to $(73.3) million in Q4 2019, and $(28.6) million in Q1 2019

·

Adjusted EBITDA of $(17.6) million compared to $(30.4) million in Q4 2019 and $3.3 million in Q1 2019

·

Gross debt of $443 million at the end of Q1 2020, compared to $481 million at the end of Q4 2019

·

European accounts receivable securitization program amended on February 6, 2020, providing  an increase in the available funding

·

Continued improvement in working capital during the quarter by $126 million, with inventory levels decreasing by $67 million due to operational changes to the global production platform

 

LONDON, June 8, 2020 (GLOBE NEWSWIRE) – Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a  leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys and other ferroalloys, today announced results for the first quarter of 2020.

 

Q1 2020 Earnings Highlights

 

In Q1 2020, Ferroglobe posted a net loss of $(49.1) million, or $(0.28) per share on a fully diluted basis. On an adjusted basis, the Q1 2020 net loss was $(37.7) million, or $(0.22) per share on a fully diluted basis.

 

Q1 2020 reported EBITDA was $(20.2) million, up from $(48.5) million in the prior quarter. On an adjusted basis, Q1 2020 EBITDA was $(17.6) million, up from Q4 2019 adjusted EBITDA of $(30.4) million. The Company reported an adjusted EBITDA margin of -5.7% for Q1 2020, compared to an adjusted EBITDA margin of -8.1% for Q4 2019. Improved margins due to strong drive in reducing the cost of raw materials.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

Quarter Ended

 

Year Ended

    

$,000 (unaudited)

 

March 31, 2020

 

December 31, 2019

 

March 31, 2019*

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$

311,223

 

$

376,607

 

$

447,391

 

$

1,615,222

 

Net (loss) profit

 

$

(49,057)

 

$

(73,290)

 

$

(28,554)

 

$

(285,640)

 

Diluted EPS

 

$

(0.28)

 

$

(0.43)

 

$

(0.16)

 

$

(1.66)

 

Adjusted net (loss) income attributable to the parent

 

$

(37,714)

 

$

(45,613)

 

$

(21,894)

 

$

(105,811)

 

Adjusted diluted EPS

 

$

(0.22)

 

$

(0.27)

 

$

(0.13)

 

$

(0.64)

 

Adjusted EBITDA

 

$

(17,616)

 

$

(30,389)

 

$

3,327

 

$

(29,236)

 

Adjusted EBITDA margin

 

 

-5.7%

 

 

-8.1%

 

 

0.7%

 

 

-1.8%

 

 

*Results for prior periods have been restated to reflect the impact of the profit(loss) from discontinued operations associated with the sale of former subsidiary FerroAtlántica S.A.U., the owner of  hydroelectric assets in Spain and one ferroalloys manufacturing plant.

 

Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “I am pleased with the team’s execution given the challenges across our organization resulting from the COVID-19 pandemic. First and foremost, we took extreme measures to ensure the health and safety of our employees globally, and I am proud to report that the quick decisions and actions of the team have resulted in healthy worksites and enabled us to operate with minimal disruption.” Dr. Levi added, “The improvement in our quarterly results shows the effectiveness of the decisive actions we have taken to manage the business operationally and financially.  These efforts will be on-going as we seek to adapt to the lingering uncertainties created by the pandemic across our value chain.  In addition to near term actions, we continue to make progress in identifying a broader set of strategic initiatives which will drive value creation for our stakeholders.”

 

Cash Flow and Balance Sheet

 

Cash generated from operations during Q1 2020 was $89.6 million, with working capital positively impacted by a decrease in inventories and trade receivables, offset by a decrease in payables. Working capital decreased from $474 million as of December  31, 2019 to $348 million at March 31, 2020.

 

Gross debt was $443 million as of March 31, 2020, down from $481 million as of December  31, 2019, primarily as a result of repayments of principal amounts related to the asset-based revolving credit facility amounting $20.4 million, the reduction of the senior loan in the securization program amounting $24.5 million and payment of the interest on the senior unsecured notes on March 1, 2020.

 

Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “The operational adjustments at year end were in anticipation of continued demand weakness into 2020.  During the first quarter our sales declined 17% compared to the prior quarter, reflecting the impact of the industry downturn.  However, even in this difficult operating environment, we were able to improve our cost structure, generate cash from operations, and reduce our debt.  These results were driven by the successful execution of cost cutting initiatives at the plant and corporate overhead levels, and emphasis on right-sizing the business in order to optimize our global footprint.  While many uncertainties remain as a result of both the cyclical downturn and the COVID-19 pandemic, we continue our effort to find additional areas of cost reduction to improve our financial performance, all with an eye towards returning to profitability.”

 

 

Recent developments

 

On February 6, 2020, the Company entered into an amended and restated accounts receivables securitization program via which trade receivables generated by certain of the Company’s subsidiaries in Spain and France are financed both directly through the existing Irish special purpose vehicle (“SPV”) and indirectly through a French fonds commun de titrisation (“FCT”). The incorporation of the FCT into the program has allowed for the sale of certain Euro-denominated receivables that were not eligible under the previous structure and increased the available funding.

Subsequent to entering into the amended program, the Company has repaid $24.5 million of senior loans in order to optimise the level of borrowings of the SPV relative to the value of receivables in the securitization. The Company may request additional senior loans up to the maximum commitment when needed.

 

COVID-19

 

Since January 2020, the COVID-19 pandemic has spread to various jurisdictions where the Company does business. The Company has been monitoring the evolving situation, and consequent emerging risk. Among other steps, the Company has implemented a coronavirus crisis management team, which has been meeting regularly to ensure the Company and its subsidiaries take appropriate action to protect all employees and ensure business continuity.

 

While it is difficult to forecast the impacts of the COVID-19 pandemic, at the present time the Company’s day-to-day operations continue without being materially affected. The Company has evaluated, and will continue to evaluate, how evolving demand from its customer base and sales price evolution stand to affect the Company’s business and results in the next twelve months.

 

Subsequent events

 

On June 8, 2020, the Company announced the appointment of Marta Amusategui as a Non-Executive Director, effective June 12, 2020.

 

Discussion of First Quarter 2020 Results

 

Sales

 

Sales for Q1 2020 were $311.2 million, a decrease of 17.4% compared to $376.6 million in Q4 2019. For Q1 2020, total shipments were down 15.6% and the average selling price was up 0.8% compared with Q4 2019. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Quarter Ended

    

Quarter Ended

 

 

    

Quarter Ended

 

 

 

Year Ended

    

 

 

March 31, 2020

 

December 31, 2019

 

Change

 

March 31, 2019

 

Change

 

December 31, 2019

 

Shipments in metric tons:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

 

53,321

 

 

63,113

 

-15.5%

 

 

62,269

 

-14.4%

 

 

239,692

 

Silicon-based Alloys

 

 

60,932

 

 

64,485

 

-5.5%

 

 

81,801

 

-25.5%

 

 

295,429

 

Manganese-based Alloys

 

 

73,724

 

 

95,235

 

-22.6%

 

 

103,669

 

-28.9%

 

 

392,456

 

Total shipments*

 

 

187,977

 

 

222,833

 

-15.6%

 

 

247,739

 

-24.1%

 

 

927,577

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/MT):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

2,212

 

$

2,164

 

2.2%

 

$

2,358

 

-6.2%

 

$

2,252

 

Silicon-based Alloys

 

$

1,474

 

$

1,424

 

3.5%

 

$

1,669

 

-11.7%

 

$

1,547

 

Manganese-based Alloys

 

$

973

 

$

1,054

 

-7.7%

 

$

1,172

 

-17.0%

 

$

1,140

 

Total*

 

$

1,487

 

$

1,475

 

0.8%

 

$

1,634

 

-9.0%

 

$

1,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average selling price ($/lb.):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Silicon Metal

 

$

1.00

 

$

0.98

 

2.2%

 

$

1.07

 

-6.2%

 

$

1.02

 

Silicon-based Alloys

 

$

0.67

 

$

0.65

 

3.5%

 

$

0.76

 

-11.7%

 

$

0.70

 

Manganese-based Alloys

 

$

0.44

 

$

0.48

 

-7.7%

 

$

0.53

 

-17.0%

 

$

0.52

 

Total*

 

$

0.67

 

$

0.67

 

0.8%

 

$

0.74

 

-9.0%

 

$

0.71

 


* Excludes by-products and other

 

Sales Prices & Volumes By Product

 

During Q1 2020, total product average selling prices increased by 0.8% versus Q4 2019.  Q1 average selling prices of silicon metal increased 2.2%, silicon-based alloys prices increased 3.5%, and manganese-based alloys prices decreased 7.7%.  

 

Sales volumes in Q1 declined by 15.6% versus the prior quarter. Q1 sales volumes of silicon metal decreased 15.5%, silicon-based alloys decreased 5.5%, and manganese-based alloys decreased 22.6% versus Q4 2019.

 

Reduced activity due to the temporary shutdown of some plants in France, Norway and Spain.

 

Cost of Sales

 

Cost of sales was $243.4 million in Q1 2020, a decrease from $314.9 million in the prior quarter. Cost of sales as a percentage of sales decreased to 78.2% in Q1 2020 versus 83,6% for Q4 2019, linked primarily to product mix, decrease in costs associated

with implementing the temporary curtailments to our operations, reduction in inventory write downs across our product portfolio and savings related to raw materials. 

 

Other Operating Expenses

 

Other operating expenses was $40.1 million in Q1 2020, a decrease from $58.8 million in the prior quarter. This decrease is primarily attributable to a decrease in commercial expenses linked to less sales volume. Additionally, Q4 2019 was negatively impacted by non recurrent costs associated with the energy contracts at plants in Europe temporarily idled.

 

Net Loss Attributable to the Parent

 

In Q1 2020, net loss attributable to the Parent was $47.9 million, or $(0,28) per diluted share, compared to a net loss attributable to the Parent of $72,4 million, or $(0,43) per diluted share in Q4 2019.

 

Adjusted EBITDA

 

In Q1 2020, adjusted EBITDA was $(17.6) million, or -5.7% of sales, compared to adjusted EBITDA of $(30.4) million, or -8.1% of sales in Q4 2019, primarily due to higher pricing and less costs incurred in Q1 2020.

 

Conference Call

 

Ferroglobe management will review the first quarter during a conference call at 9:00 a.m. Eastern Time on June 9, 2020.

 

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 7299897). International callers should dial +1 914‑495‑8526 (conference ID 7299897). 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/tvypsrbz.

 

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

 

    

March 31, 2020

 

December 31, 2019

 

March 31, 2019*

 

December 31, 2019

Sales

  

$

311,223

 

$

376,607

 

$

447,391

 

$

1,615,222

Cost of sales

  

 

(243,360)

 

 

(314,905)

 

 

(329,368)

 

 

(1,214,397)

Other operating income

  

 

7,768

 

 

12,446

 

 

14,021

 

 

54,213

Staff costs

  

 

(55,097)

 

 

(63,378)

 

 

(74,263)

 

 

(285,029)

Other operating expense

  

 

(40,067)

 

 

(58,804)

 

 

(53,917)

 

 

(225,705)

Depreciation and amortization charges, operating allowances and write-downs

  

 

(28,668)

 

 

(30,029)

 

 

(30,370)

 

 

(120,194)

Impairment losses

 

 

 —

 

 

(547)

 

 

(140)

 

 

(175,899)

Bargain purchase gain

 

 

 —

 

 

 —

 

 

 —

 

 

 —

Other gain (loss)

 

 

(671)

 

 

100

 

 

(397)

 

 

(3,797)

Operating (loss) profit

 

 

(48,872)

 

 

(78,510)

 

 

(27,043)

 

 

(355,586)

Net finance expense

  

 

(16,484)

 

 

(16,484)

 

 

(13,823)

 

 

(61,845)

Financial derivatives (loss) gain

 

 

3,168

 

 

(1,153)

 

 

1,264

 

 

2,729

Exchange differences

  

 

2,436

 

 

4,366

 

 

(1,479)

 

 

2,884

(Loss) profit before tax

  

 

(59,753)

 

 

(91,781)

 

 

(41,081)

 

 

(411,818)

Income tax benefit (expense)

  

 

10,696

 

 

14,119

 

 

8,210

 

 

41,541

(Loss) profit for the period from continuing operations

 

 

(49,057)

 

 

(77,662)

 

 

(32,871)

 

 

(370,277)

Profit for the period from discontinued operations

 

 

 —

 

 

4,372

 

 

4,317

 

 

84,637

(Loss) profit for the period

 

 

(49,057)

 

 

(73,290)

 

 

(28,554)

 

 

(285,640)

Loss (profit) attributable to non-controlling interest

  

 

1,159

 

 

866

 

 

1,724

 

 

5,039

(Loss) profit attributable to the parent

  

$

(47,898)

 

$

(72,424)

 

$

(26,830)

 

$

(280,601)

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

(20,204)

 

$

(48,481)

 

$

3,327

 

$

(235,392)

Adjusted EBITDA

 

$

(17,617)

 

$

(30,390)

 

$

3,327

 

$

(29,236)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

169,249

 

 

169,182

 

 

169,123

 

 

169,153

Diluted

 

 

169,249

 

 

169,182

 

 

169,123

 

 

169,153

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit per ordinary share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.28)

 

$

(0.43)

 

$

(0.16)

 

$

(1.66)

Diluted

 

$

(0.28)

 

$

(0.43)

 

$

(0.16)

 

$

(1.66)

 

*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 hydroelectric assets in Spain and one ferroalloys manufacturing plant.

Ferroglobe PLC and Subsidiaries

Unaudited Condensed Consolidated Statement of Financial Position

(in thousands of U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marzo 31,

 

December 31,

 

March 31,

 

    

2020

    

2019

    

2019

ASSETS

Non-current assets

 

 

 

 

 

 

 

 

 

 

Goodwill

 

$

 

29,702

 

$

29,702

 

$

203,472

Other intangible assets

 

 

 

50,373

 

 

51,267

 

 

69,399

Property, plant and equipment

 

 

 

689,383

 

 

740,906

 

 

890,436

Other non-current financial assets

 

 

 

5,683

 

 

2,618

 

 

54,979

Deferred tax assets

 

 

 

65,360

 

 

59,551

 

 

7,135

Non-current receivables from related parties

 

 

 

2,191

 

 

2,247

 

 

2,247

Other non-current assets

 

 

 

1,520

 

 

1,597

 

 

10,435

Non-current restricted cash and cash equivalents

 

 

 

28,173

 

 

28,323

 

 

 —

Total non-current assets

 

 

 

872,385

 

 

916,211

 

 

1,238,103

Current assets

 

 

 

 

 

 

 

 

 

 

Inventories

 

 

 

287,258

 

 

354,121

 

 

451,753

Trade and other receivables

 

 

 

216,970

 

 

309,064

 

 

127,992

Current receivables from related parties

 

 

 

2,895

 

 

2,955

 

 

6,556

Current income tax assets

 

 

 

16,298

 

 

27,930

 

 

26,855

Other current financial assets

 

 

 

5,062

 

 

5,544

 

 

2,191

Other current assets

 

 

 

16,113

 

 

23,676

 

 

13,721

Cash and cash equivalents *

 

 

 

116,316

 

 

94,852

 

 

216,627

Total current assets

 

 

 

660,912

 

 

818,142

 

 

845,695

Total assets

 

$

 

1,533,297

 

$

1,734,353

 

$

2,083,798

 

 

 

 

 

 

 

 

 

 

 

EQUITY AND LIABILITIES

Equity

 

$

 

525,117

 

$

602,297

 

$

855,099

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

Deferred income

 

 

 

9,081

 

 

1,253

 

 

11,676

Provisions

 

 

 

79,135

 

 

84,852

 

 

76,613

Bank borrowings

 

 

 

111,583

 

 

144,388

 

 

131,366

Lease liabilities

 

 

 

14,642

 

 

16,972

 

 

66,992

Debt instruments

 

 

 

344,639

 

 

344,014

 

 

342,222

Other financial liabilities

 

 

 

32,702

 

 

43,157

 

 

27,109

Other non-current liabilities

 

 

 

26,817

 

 

25,906

 

 

25,080

Deferred tax liabilities

 

 

 

69,084

 

 

74,057

 

 

61,887

Total non-current liabilities

 

 

 

687,683

 

 

734,599

 

 

742,945

Current liabilities

 

 

 

 

 

 

 

 

 

 

Provisions

 

 

 

34,853

 

 

46,091

 

 

47,619

Bank borrowings

 

 

 

1,369

 

 

14,611

 

 

19,100

Lease liabilities

 

 

 

8,932

 

 

8,900

 

 

20,616

Debt instruments

 

 

 

2,820

 

 

10,937

 

 

2,734

Other financial liabilities

 

 

 

23,101

 

 

23,382

 

 

51,618

Payables to related parties

 

 

 

4,572

 

 

4,830

 

 

12,199

Trade and other payables

 

 

 

156,634

 

 

189,229

 

 

228,649

Current income tax liabilities

 

 

 

1,485

 

 

3,048

 

 

4,369

Other current liabilities

 

 

 

86,731

 

 

96,429

 

 

98,850

Liabilities associated with assets classified as held for sale

 

 

 

 —

 

 

 —

 

 

 —

Total current liabilities

 

 

 

320,497

 

 

397,457

 

 

485,754

Total equity and liabilities

 

$

 

1,533,297

 

$

1,734,353

 

$

2,083,798

 

*Cash and cash equivalents at March 31, 2020 includes the cash balance of the A/R securitization program of $38,745 ($38,778 and $nil at December  31, 2019 and March 31, 2019, 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

 

    

March 31, 2020

 

December 31, 2019*

 

March 31, 2019*

 

 

December 31, 2019*

Cash flows from operating activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) profit for the period

 

$

(49,057)

 

$

(73,289)

 

$

(28,554)

 

 

$

(285,640)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

(10,696)

 

 

(14,120)

 

 

(6,704)

 

 

 

(40,528)

Depreciation and amortization charges,
operating allowances and write-downs

 

 

28,668

 

 

30,029

 

 

32,077

 

 

 

123,024

Net finance expense

 

 

16,484

 

 

16,485

 

 

14,756

 

 

 

68,279

Financial derivatives loss (gain)

 

 

(3,168)

 

 

1,153

 

 

(1,264)

 

 

 

(2,729)

Exchange differences

 

 

(2,436)

 

 

(4,366)

 

 

1,479

 

 

 

(2,884)

Impairment losses

 

 

 —

 

 

546

 

 

140

 

 

 

175,899

Bargain purchase gain

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

Gain on disposal of discontinued operation

 

 

 —

 

 

(4,372)

 

 

 —

 

 

 

(85,101)

Share-based compensation

 

 

722

 

 

1,599

 

 

1,332

 

 

 

4,879

Other adjustments

 

 

671

 

 

(99)

 

 

397

 

 

 

3,797

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

(Increase) decrease  in inventories

 

 

51,577

 

 

132,493

 

 

35

 

 

 

91,531

(Increase) decrease in trade receivables

 

 

83,832

 

 

29,310

 

 

28,371

 

 

 

30,933

Increase (decrease) in trade payables

 

 

(25,504)

 

 

(51,152)

 

 

(22,967)

 

 

 

(63,187)

Other

 

 

(11,598)

 

 

(24,448)

 

 

9,787

 

 

 

(45,878)

Income taxes paid

 

 

10,119

 

 

(523)

 

 

(1,680)

 

 

 

(3,589)

Net cash provided (used) by operating activities

 

 

89,614

 

 

39,246

 

 

27,205

 

 

 

(31,194)

Cash flows from investing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and finance income received

 

 

254

 

 

171

 

 

390

 

 

 

1,673

Payments due to investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition of subsidiary

 

 

 —

 

 

 —

 

 

 —

 

 

 

9,088

Other intangible assets

 

 

 —

 

 

 —

 

 

(134)

 

 

 

(184)

Property, plant and equipment

 

 

(4,606)

 

 

(5,600)

 

 

(13,448)

 

 

 

(32,445)

Other

 

 

 —

 

 

(621)

 

 

 —

 

 

 

(1,248)

Disposals:

 

 

 

 

 

 

 

 

 

 

 

 

 

Disposal of subsidiaries

 

 

 —

 

 

5,532

 

 

 —

 

 

 

176,590

Other non-current assets

 

 

 —

 

 

8,668

 

 

 —

 

 

 

8,668

Other

 

 

 —

 

 

352

 

 

1,759

 

 

 

3,768

Net cash (used) provided by investing activities

 

 

(4,352)

 

 

8,502

 

 

(11,433)

 

 

 

165,910

Cash flows from financing activities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends paid

 

 

 —

 

 

 —

 

 

 —

 

 

 

 

Payment for debt issuance costs

 

 

(1,576)

 

 

(12,319)

 

 

(705)

 

 

 

(15,117)

Repayment of hydro leases

 

 

 —

 

 

 —

 

 

 —

 

 

 

(55,352)

Repayment of other financial liabilities

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

Increase/(decrease) in bank borrowings:

 

 

 

 

 

 —

 

 

 —

 

 

 

 —

Borrowings

 

 

 —

 

 

174,130

 

 

31,850

 

 

 

245,629

Payments

 

 

(44,880)

 

 

(269,400)

 

 

(20,811)

 

 

 

(329,501)

Proceeds from stock option exercises

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

Other amounts paid due to financing activities

 

 

1,147

 

 

(4,363)

 

 

(5,708)

 

 

 

(26,631)

Payments to acquire or redeem own shares

 

 

 —

 

 

 —

 

 

 —

 

 

 

 —

Interest paid

 

 

(18,824)

 

 

(2,471)

 

 

(18,508)

 

 

 

(43,033)

Net cash (used) provided by financing activities

 

 

(64,133)

 

 

(114,423)

 

 

(13,882)

 

 

 

(224,005)

Total net cash flows for the period

 

 

21,129

 

 

(66,675)

 

 

1,890

 

 

 

(89,289)

Beginning balance of cash and cash equivalents

 

 

123,175

 

 

188,043

 

 

216,647

 

 

 

216,647

Exchange differences on cash and
cash equivalents in foreign currencies

 

 

185

 

 

1,807

 

 

(1,910)

 

 

 

(4,183)

Ending balance of cash and cash equivalents

 

$

144,489

 

$

123,175

 

$

216,627

 

 

$

123,175

Cash from continuing operations

 

 

116,316

 

 

94,852

 

 

216,627

 

 

 

94,852

Non-current restricted cash and cash equivalents

 

 

28,173

 

 

28,323

 

 

 —

 

 

 

28,323

Cash and restricted cash in the statement of financial position

 

$

144,489

 

$

123,175

 

$

216,627

 

 

$

123,175

 

* While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a more fair presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities.

Adjusted EBITDA ($,000):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

    

Quarter Ended

    

Quarter Ended

 

Year Ended

 

    

March 31, 2020

 

December 31, 2019

 

March 31, 2019 *

 

December 31, 2019

(Loss) profit attributable to the parent

 

$

(47,898)

 

$

(72,424)

 

$

(26,830)

 

$

(280,601)

(Loss) profit for the period from discontinued operations

 

 

 —

 

 

(4,372)

 

 

(4,317)

 

 

(84,637)

Loss (profit) attributable to non-controlling interest

 

 

(1,159)

 

 

(866)

 

 

(1,724)

 

 

(5,039)

Income tax (benefit) expense

 

 

(10,696)

 

 

(14,119)

 

 

(8,210)

 

 

(41,541)

Net finance expense

 

 

16,484

 

 

16,484

 

 

13,823

 

 

61,845

Financial derivatives loss (gain)

 

 

(3,168)

 

 

1,153

 

 

(1,264)

 

 

(2,729)

Exchange differences

 

 

(2,436)

 

 

(4,366)

 

 

1,479

 

 

(2,884)

Depreciation and amortization charges, operating allowances and write-downs

 

 

28,668

 

 

30,029

 

 

30,370

 

 

120,194

EBITDA

 

 

(20,205)

 

 

(48,481)

 

 

3,327

 

 

(235,392)

Impairment

 

 

 —

 

 

456

 

 

 —

 

 

174,464

Revaluation of biological assets

 

 

 —

 

 

(550)