Ferroglobe PLC (NASDAQ:GSM) (“Ferroglobe” or the “company”), the
world’s leading producer of silicon metal, and a leading silicon-
and manganese-based specialty alloys producer, announced today
results for the second quarter of 2016.
In the second quarter of 2016, Ferroglobe posted a net loss of
$(42.2) million, or $(0.25) per share on a fully diluted basis.
Excluding the impairment charge for Venezuela, due diligence and
transaction costs, the company posted an adjusted net loss of
$(2.8) million, or $(0.01) per share on a fully diluted basis.
Ferroglobe reported an EBITDA loss of $(46.6) million for the
second quarter due to the write-off of the company’s Venezuelan
assets $(58.6) million. Excluding the impairment charge for
Venezuela, due diligence and transaction costs, Q2 2016 adjusted
EBITDA was $17.2 million.
Net sales in the second quarter totalled $398.0 million, down
from $423.5 million sequentially. In the second quarter,
Ferroglobe’s average selling price for silicon metal declined by 6%
from the previous quarter’s average selling price, primarily due to
pressure from low-priced imports. During this period, the average
selling price for silicon-based alloys remained flat and the
average selling price for manganese alloys, new to our product mix,
increased 2% from the first quarter of 2016.
In terms of sales volumes, silicon metal experienced a decline
of 5% quarter over quarter, but improved dynamics in the steel
industry allowed sales increases of 2% in silicon alloys and a
strong 11% in manganese alloys.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Quarter Ended June |
|
Quarter Ended |
|
|
|
|
|
June 30, 2016 |
|
30, 2016 |
|
March 31, 2016 |
Shipments
in metric tons: |
|
|
|
|
|
|
|
Silicon
Metal |
|
|
175,347 |
|
|
|
85,242 |
|
|
|
90,105 |
|
|
Silicon
Alloys |
|
|
148,259 |
|
|
|
74,786 |
|
|
|
73,473 |
|
|
Manganese
Alloys |
|
|
134,331 |
|
|
|
70,756 |
|
|
|
63,575 |
|
|
|
Total
shipments* |
|
|
457,937 |
|
|
|
230,784 |
|
|
|
227,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Quarter Ended June |
|
Quarter Ended |
|
|
|
|
|
June 30, 2016 |
|
30, 2016 |
|
March 31, 2016 |
Average
selling price ($/MT): |
|
|
|
|
|
|
|
|
|
Silicon
Metal |
|
$ |
2,311 |
|
|
$ |
2,230 |
|
|
$ |
2,387 |
|
|
Silicon
Alloys |
|
$ |
1,432 |
|
|
$ |
1,430 |
|
|
$ |
1,433 |
|
|
Manganese
Alloys |
|
$ |
771 |
|
|
$ |
777 |
|
|
$ |
764 |
|
|
|
Total* |
|
$ |
1,574 |
|
|
$ |
1,525 |
|
|
$ |
1,624 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
Quarter Ended June |
|
Quarter Ended |
|
|
|
|
|
June 30, 2016 |
|
30, 2016 |
|
March 31, 2016 |
Average
selling price ($/lb.): |
|
|
|
|
|
|
Silicon
Metal |
|
$ |
1.05 |
|
|
$ |
1.01 |
|
|
$ |
1.08 |
|
|
Silicon
Alloys |
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
Manganese
Alloys |
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
$ |
0.35 |
|
|
|
Total* |
|
$ |
0.71 |
|
|
$ |
0.69 |
|
|
$ |
0.74 |
|
|
|
|
|
|
|
|
|
|
|
* Excludes
by-products and other |
|
|
|
|
“The pricing environment in silicon metal has remained tough
this quarter, primarily due to increased pressure from low-priced
imports. While in silicon metal we continue to achieve spot sales
prices above the index, as we said last quarter, we do not expect
overall market pricing to begin recovering before late 2016. In the
meantime, we are focused on positioning ourselves for the future by
managing costs, optimizing the operational footprint of our
business, pursuing both organic and inorganic growth opportunities,
identifying non-core asset divestiture opportunities and extracting
the synergies from our merger,” said CEO Pedro Larrea. “Financial
discipline and prudent management of our business remain our core
priorities, and we have made significant progress on our cost base
and working capital. Despite a challenging pricing environment, we
continue to generate cash flows and reduce our net debt,
maintaining our strong balance sheet.”
Continued focus on financial discipline and balance
sheet strength
Ferroglobe reported an EBITDA of $(46.6) million, primarily due
to a large impairment charge and a continued challenging pricing
environment. The company impaired its assets in Venezuela based on
the continuous operating losses and the overall operating
environment in that country and is currently evaluating strategic
options in Venezuela overall.
Excluding the impairment charge, due diligence and transaction
costs, Q2 2016 adjusted EBITDA was $17.2 million. Overall the price
decline adversely impacted EBITDA by $(16.1) million
quarter-over-quarter, partially offset by a meaningful reduction of
production cost on a per ton basis, aggregating to $11.1 million in
Q2 2016.
Moreover, when compared to legacy Globe Specialty Metals
production costs (measured in $/lb) in silicon metal and silicon
alloys, Ferroglobe achieved post-combination cost reductions of 22%
in the first half of the year, and it has already reached $28
million in captured synergies year-to-date.
Ferroglobe generated operating cash flows of $24.3 million in Q2
2016, or $53.9 million year-to-date. A significant part of the
operating cash flows comes from working capital improvements of
$41.2 million during Q2 2016, bringing improvements year-to-date to
$96.5 million and to $169.9 million over the last 12 months. The
company has generated $43.9 million of free cash flow year-to-date,
of which $8.6 million was generated during Q2
2016.1 Ferroglobe’s net debt was $413 million at the end of Q2
2016, compared to $421 million at the end of Q1 2016.
“In addition to systematic cost improvements, we continue to
drive integration savings, cost reductions and platform
optimization. We expect to deliver on our annualized run rate
synergies target of $65 million by the end of 2016 with
approximately $28 million achieved in 1H 2016. We are also
closely reviewing our asset portfolio and considering actionable
opportunities to improve our footprint. Recently, we have
renegotiated our power contracts in Argentina which will enable us
to restart the facility next week and reverse the negative impact
of that facility since February of 2016,” concluded
Larrea.
The Board has decided to maintain the quarterly interim dividend
of $0.08 per share, further reflecting the confidence in the
underlying strength of the business and the company’s long-term
outlook.
1 Free cash-flow defined as “Net cash provided by operating
activities” minus “Payments for property, plant and equipment”,
calculated excluding the impact of the $32.5 million shareholder
settlement paid in the quarter ended March 31, 2016.
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Quarter Ended |
|
|
Quarter Ended |
|
|
June 30, 2016 |
|
|
June 30, 2016 |
|
|
March 31, 2016 |
Loss
attributable to the parent |
$ |
|
(67,937 |
) |
|
|
|
(42,238 |
) |
|
|
|
(25,699 |
) |
Loss attributable to
non-controlling interest |
|
|
(13,291 |
) |
|
|
|
(7,080 |
) |
|
|
|
(6,211 |
) |
Income tax (benefit)
expense |
|
|
(28,261 |
) |
|
|
|
(29,038 |
) |
|
|
|
777 |
|
Net finance
expense |
|
|
14,523 |
|
|
|
|
6,908 |
|
|
|
|
7,615 |
|
Exchange
differences |
|
|
2,004 |
|
|
|
|
276 |
|
|
|
|
1,728 |
|
Depreciation and
amortization charges, operating allowances and write-downs |
|
|
67,532 |
|
|
|
|
24,534 |
|
|
|
|
42,998 |
|
EBITDA |
|
|
(25,430 |
) |
|
|
|
(46,638 |
) |
|
|
|
21,208 |
|
Transaction and due
diligence expenses |
|
|
7,868 |
|
|
|
|
5,227 |
|
|
|
|
2,641 |
|
Impairment loss |
|
|
58,587 |
|
|
|
|
58,587 |
|
|
|
|
- |
|
Globe purchase price
allocation adjustments |
|
|
10,022 |
|
|
|
|
- |
|
|
|
|
10,022 |
|
Adjusted EBITDA,
excluding above items |
$ |
|
51,047 |
|
|
|
|
17,176 |
|
|
|
|
33,871 |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted loss per share:
|
|
Six Months |
|
|
|
|
|
|
Ended June 30, |
|
Quarter Ended |
|
Quarter Ended |
|
|
2016 |
|
June 30, 2016 |
|
March 31, 2016 |
Diluted loss
per ordinary share |
|
|
(0.40 |
) |
|
|
(0.25 |
) |
|
|
(0.15 |
) |
Tax rate
adjustment |
|
|
0.05 |
|
|
|
(0.01 |
) |
|
|
0.06 |
|
Transaction and due diligence expenses |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.01 |
|
Impairment loss |
|
|
0.23 |
|
|
|
0.23 |
|
|
|
- |
|
Globe
purchase price allocation adjustments |
|
|
0.04 |
|
|
|
- |
|
|
|
0.04 |
|
Adjusted diluted loss per ordinary
share |
|
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
(0.04 |
) |
|
|
|
|
|
|
|
Adjusted net loss attributable to Ferroglobe:
|
|
|
Six Months |
|
Quarter |
|
Quarter |
|
|
|
Ended June 30, |
|
Ended June |
|
Ended March |
|
|
|
2016 |
|
30, 2016 |
|
31, 2016 |
|
|
|
|
|
|
|
|
Loss attributable to the parent |
|
$ |
|
(67,937 |
) |
|
|
(42,238 |
) |
|
|
(25,699 |
) |
Tax rate
adjustment |
|
|
|
6,775 |
|
|
|
(3,964 |
) |
|
|
10,739 |
|
Transaction and due diligence expenses |
|
|
|
5,351 |
|
|
|
3,555 |
|
|
|
1,796 |
|
Impairment loss |
|
|
|
39,839 |
|
|
|
39,839 |
|
|
|
- |
|
Globe
purchase price allocation adjustments |
|
|
|
6,815 |
|
|
|
- |
|
|
|
6,815 |
|
Adjusted loss attributable to the parent |
|
$ |
|
(9,157 |
) |
|
|
(2,808 |
) |
|
|
(6,349 |
) |
|
|
|
|
|
|
|
|
Conference Call
Ferroglobe will review second quarter 2016 results during a
conference call at 9:00 a.m. Eastern Time on August 26, 2016.
The dial-in number for the call for participants in the United
States is 877-293-5491 (conference ID 71333535). International
callers should dial +1 914-495-8526 (conference ID 71333535).
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
http://edge.media-server.com/m/p/frvz6jap.
About Ferroglobe
Ferroglobe PLC 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 Section 27A of the United States Securities Act of 1933,
as amended, and Section 21E of the United States Securities
Exchange Act of 1934, as amended. 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 generally can be
identified by the use of forward-looking terminology, including,
but not limited to, “may,” “could,” “seek,” “guidance,” “predicts,”
“potential,” “likely,” “believe,” “will,” “expect,” “anticipate,:
“estimate,” “plan,” “intends,” “forecast” or variations of these
terms and similar expressions, or the negative of these terms or
similar expressions.
Forward-looking statements contained in this press release are
based on information presently available to us and assumptions that
we believe to be reasonable, but are inherently uncertain. As
a result, our 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 our control.
You are cautioned that all such statements involve risks and
uncertainties, including without limitation, risks that the legacy
businesses of Globe and FerroAtlántica will not be integrated
successfully or that we will not realize estimated cost savings,
value of certain tax assets, synergies and growth, or that such
benefits may take longer to realize than expected. Important
factors that may cause actual results to differ include, but are
limited to: (i) risks relating to unanticipated costs of
integration, including operating costs, customer loss and business
disruption being greater than expected; (ii) our organizational and
governance structure; (iii) the ability to hire and retain key
personnel; (iv) regional, national or global political, economic,
business, competitive, market and regulatory conditions including,
among others, changes in metals prices; (v) increases in the cost
of raw materials or energy; (vi) competition in the metals and
foundry industries; (vii) environmental and regulatory risks;
(viii) ability to identify liabilities associated with acquired
properties prior to their acquisition; (ix) ability to manage price
and operational risks including industrial accidents and natural
disasters; (x) ability to manage foreign operations; (xi) changes
in technology; (xii) ability to acquire or renew permits and
approvals; (xiii) changes in legislation or governmental
regulations affecting Ferroglobe; (xiv) conditions in the credit
markets; (xv) risks associated with assumptions made in connection
with critical accounting estimates and legal proceedings; (xvi)
Ferroglobe's international operations, which are subject to the
risks of currency fluctuations and foreign exchange controls; and
(xvii) the potential of international unrest, economic downturn or
effects of currencies, tax assessments, tax adjustments,
anticipated tax rates, raw material costs or availability or other
regulatory compliance costs. The foregoing list is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties that affect our business,
including those described in the “Risk Factors” section of our
Annual Reports on Form 20-F, Current Reports on Form 6-K and other
documents we file from time to time with the United States
Securities and Exchange Commission. We do not give any assurance
(1) that we will achieve our expectations or (2) concerning any
result or the timing thereof, in each case, with respect to any
regulatory action, administrative proceedings, government
investigations, litigation, warning letters, consent decree, cost
reductions, business strategies, earnings or revenue trends or
future financial results. Forward-looking financial information and
other metrics presented herein represent our key goals and are not
intended as guidance or projections for the periods presented
herein or any future periods.
All information in this press release is as of the date of its
release. We do not undertake or assume any obligation to update
publicly any of the forward-looking statements in this press
release to reflect actual results, new information or future
events, changes in assumptions or changes in other factors
affecting forward-looking statements. If we update one or more
forward-looking statements, no inference should be drawn that we
will make additional updates with respect to those or other
forward-looking statements. We caution you not to place undue
reliance on any forward-looking statements, which are made only as
of the date of this press release.
Non-GAAP Measures
EBITDA, adjusted EBITDA, adjusted loss attributable to parent
and adjusted diluted loss per ordinary share are non-GAAP
measures.
We have included these measures to provide supplemental measures
of our performance which we believe are important because they
eliminate items that have less bearing on our current and future
operating performance and so highlights trends in our core business
that may not otherwise be apparent when relying solely on GAAP
financial measures. Reconciliations of these measures to the
comparable GAAP financial measures are provided above and in the
attached financial statements.
Ferroglobe PLC and Subsidiaries |
|
Unaudited Condensed Consolidated Income
Statement |
|
(in thousands of U.S. dollars, except per
share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Quarter Ended June |
|
|
Quarter Ended |
|
|
Year Ended December |
|
|
|
|
June 30, 2016 |
|
|
30, 2016 |
|
|
March 31, 2016 |
|
|
31, 2015 * |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
|
821,432 |
|
|
$ |
|
397,953 |
|
|
$ |
|
423,479 |
|
|
$ |
|
2,039,608 |
|
|
Cost of sales |
|
|
|
(534,607 |
) |
|
|
|
(252,764 |
) |
|
|
|
(281,843 |
) |
|
|
|
(1,225,313 |
) |
|
Other operating income |
|
|
|
6,050 |
|
|
|
|
3,717 |
|
|
|
|
2,333 |
|
|
|
|
20,455 |
|
|
Staff costs |
|
|
|
(139,233 |
) |
|
|
|
(72,050 |
) |
|
|
|
(67,183 |
) |
|
|
|
(330,382 |
) |
|
Other operating expense |
|
|
|
(119,315 |
) |
|
|
|
(64,374 |
) |
|
|
|
(54,941 |
) |
|
|
|
(351,929 |
) |
|
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
|
(67,532 |
) |
|
|
|
(24,534 |
) |
|
|
|
(42,998 |
) |
|
|
|
(141,097 |
) |
|
Impairment losses |
|
|
|
(58,587 |
) |
|
|
|
(58,587 |
) |
|
|
|
- |
|
|
|
|
(52,042 |
) |
|
Other losses |
|
|
|
(1,170 |
) |
|
|
|
(533 |
) |
|
|
|
(637 |
) |
|
|
|
(3,473 |
) |
|
Operating
loss |
|
|
|
(92,962 |
) |
|
|
|
(71,172 |
) |
|
|
|
(21,790 |
) |
|
|
|
(44,173 |
) |
|
Finance income |
|
|
|
685 |
|
|
|
|
442 |
|
|
|
|
243 |
|
|
|
|
1,343 |
|
|
Finance expense |
|
|
|
(15,208 |
) |
|
|
|
(7,350 |
) |
|
|
|
(7,858 |
) |
|
|
|
(34,521 |
) |
|
Exchange differences |
|
|
|
(2,004 |
) |
|
|
|
(276 |
) |
|
|
|
(1,728 |
) |
|
|
|
29,993 |
|
|
Loss before
tax |
|
|
|
(109,489 |
) |
|
|
|
(78,356 |
) |
|
|
|
(31,133 |
) |
|
|
|
(47,358 |
) |
|
Income tax benefit (expense) |
|
|
|
28,261 |
|
|
|
|
29,038 |
|
|
|
|
(777 |
) |
|
|
|
(62,546 |
) |
|
Loss for the
period |
|
|
|
(81,228 |
) |
|
|
|
(49,318 |
) |
|
|
|
(31,910 |
) |
|
|
|
(109,904 |
) |
|
Loss attributable to
non-controlling interest |
|
|
|
13,291 |
|
|
|
|
7,080 |
|
|
|
|
6,211 |
|
|
|
|
13,308 |
|
|
Loss attributable to the
parent |
|
$ |
|
(67,937 |
) |
|
$ |
|
(42,238 |
) |
|
$ |
|
(25,699 |
) |
|
$ |
|
(96,596 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
|
(25,430 |
) |
|
|
|
(46,638 |
) |
|
|
|
21,208 |
|
|
|
|
96,924 |
|
|
Adjusted EBITDA |
|
|
|
51,047 |
|
|
|
|
17,176 |
|
|
|
|
33,871 |
|
|
|
|
294,799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
171,838 |
|
|
|
|
171,838 |
|
|
|
|
171,838 |
|
|
|
|
|
Diluted |
|
|
|
171,838 |
|
|
|
|
171,838 |
|
|
|
|
171,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
|
(0.40 |
) |
|
|
|
(0.25 |
) |
|
|
|
(0.15 |
) |
|
|
|
|
Diluted |
|
|
|
(0.40 |
) |
|
|
|
(0.25 |
) |
|
|
|
(0.15 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* -
Represents combined Globe and FerroAtlantica results on a pro forma
basis. |
|
Ferroglobe PLC and Subsidiaries |
Unaudited Condensed Consolidated Statement of
Financial Position |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
June 30, |
|
March 31, |
|
December 31, |
|
|
|
2016 |
|
2016 |
|
2015 |
ASSETS |
Non-current assets |
|
|
|
|
|
|
Goodwill |
$ |
404,015 |
|
404,009 |
|
403,929 |
Other intangible
assets |
|
71,247 |
|
72,041 |
|
71,619 |
Property, plant and
equipment |
|
941,580 |
|
1,011,395 |
|
1,012,367 |
Non-current financial
assets |
|
10,091 |
|
9,969 |
|
9,672 |
Deferred tax
assets |
|
51,337 |
|
36,767 |
|
36,098 |
Other non-current
assets |
|
21,881 |
|
21,558 |
|
20,615 |
Total non-current assets |
|
1,500,151 |
|
1,555,739 |
|
1,554,300 |
Current assets |
|
|
|
|
|
|
Inventories |
|
374,795 |
|
396,319 |
|
425,372 |
Trade and other
receivables |
|
216,322 |
|
250,331 |
|
275,254 |
Current receivables
from related parties |
|
3,705 |
|
10,784 |
|
10,950 |
Current income tax
assets |
|
22,302 |
|
17,488 |
|
9,273 |
Current financial
assets |
|
18,005 |
|
3,979 |
|
4,112 |
Other current
assets |
|
12,299 |
|
10,529 |
|
10,134 |
Cash and cash
equivalents |
|
135,774 |
|
114,019 |
|
116,666 |
Total current assets |
|
783,202 |
|
803,449 |
|
851,761 |
Total assets |
$ |
2,283,353 |
|
2,359,188 |
|
2,406,061 |
EQUITY AND LIABILITIES |
Equity |
$ |
1,220,184 |
|
1,271,747 |
|
1,294,973 |
Non-current liabilities |
|
|
|
|
|
|
Deferred income |
|
6,512 |
|
10,879 |
|
4,389 |
Provisions |
|
82,250 |
|
81,900 |
|
81,853 |
Bank borrowings |
|
231,202 |
|
255,057 |
|
223,676 |
Obligations under
finance leases |
|
84,059 |
|
90,643 |
|
89,768 |
Other financial
liabilities |
|
8,283 |
|
8,414 |
|
7,549 |
Other non-current
liabilities |
|
3,741 |
|
3,679 |
|
4,517 |
Deferred tax
liabilities |
|
183,878 |
|
205,064 |
|
206,648 |
Total non-current liabilities |
|
599,925 |
|
655,636 |
|
618,400 |
Current liabilities |
|
|
|
|
|
|
|
Provisions |
|
13,867 |
|
8,361 |
|
9,010 |
Bank borrowings |
|
219,922 |
|
174,921 |
|
182,554 |
Obligations under
finance leases |
|
13,841 |
|
13,976 |
|
13,429 |
Payables to related
parties |
|
2,353 |
|
6,343 |
|
7,827 |
Trade and other
payables |
|
134,122 |
|
148,367 |
|
147,073 |
Current income tax
liabilities |
|
2,139 |
|
9,716 |
|
10,887 |
Other current
liabilities |
|
77,000 |
|
70,121 |
|
121,908 |
Total current liabilities |
|
|
463,244 |
|
431,805 |
|
492,688 |
Total equity and liabilities |
$ |
2,283,353 |
|
2,359,188 |
|
2,406,061 |
Ferroglobe PLC and Subsidiaries |
|
Unaudited Condensed Consolidated Statement of
Cash Flows |
|
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended |
|
|
Quarter Ended June |
|
Quarter Ended |
|
|
|
|
|
June 30, 2016 |
|
|
30, 2016 |
|
March 31, 2016 |
|
CASH FLOWS
FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Loss for
the period |
$ |
|
(81,228 |
) |
|
$ |
|
(49,318 |
) |
$ |
|
(31,910 |
) |
|
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
Income tax (benefit)
expense |
|
|
(28,261 |
) |
|
|
|
(29,038 |
) |
|
|
777 |
|
|
|
Depreciation and
amortization charges, operating allowances and write-downs |
|
|
67,532 |
|
|
|
|
24,534 |
|
|
|
42,998 |
|
|
|
Finance income |
|
|
(685 |
) |
|
|
|
(442 |
) |
|
|
(243 |
) |
|
|
Finance expense |
|
|
15,208 |
|
|
|
|
7,350 |
|
|
|
7,858 |
|
|
|
Exchange
differences |
|
|
2,004 |
|
|
|
|
276 |
|
|
|
1,728 |
|
|
|
Impairment losses |
|
|
58,587 |
|
|
|
|
58,587 |
|
|
|
- |
|
|
|
Loss (gain) on
disposals of non-current and financial assets |
|
|
191 |
|
|
|
|
242 |
|
|
|
(51 |
) |
|
|
Other adjustments |
|
|
979 |
|
|
|
|
291 |
|
|
|
688 |
|
|
Changes in
operating assets and liabilities |
|
|
|
|
|
|
|
|
|
Decrease in
inventories |
|
|
57,696 |
|
|
|
|
14,347 |
|
|
|
43,349 |
|
|
|
Decrease in trade
receivables |
|
|
54,236 |
|
|
|
|
28,439 |
|
|
|
25,797 |
|
|
|
Increase in trade
payables |
|
|
(8,741 |
) |
|
|
|
(10,651 |
) |
|
|
1,910 |
|
|
|
Other* |
|
|
(58,901 |
) |
|
|
|
(16,050 |
) |
|
|
(42,851 |
) |
|
Income
taxes (paid) received |
|
|
(11,277 |
) |
|
|
|
1,497 |
|
|
|
(12,774 |
) |
|
Interest
paid |
|
|
(13,469 |
) |
|
|
|
(5,767 |
) |
|
|
(7,702 |
) |
|
Net cash
provided by operating activities |
|
|
53,871 |
|
|
|
|
24,297 |
|
|
|
29,574 |
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Payments
due to investments: |
|
|
|
|
|
|
|
|
|
Other intangible
assets |
|
|
(523 |
) |
|
|
|
(87 |
) |
|
|
(436 |
) |
|
|
Property, plant and
equipment |
|
|
(42,484 |
) |
|
|
|
(15,676 |
) |
|
|
(26,808 |
) |
|
|
Non-current financial
assets |
|
|
(273 |
) |
|
|
|
(273 |
) |
|
|
- |
|
|
|
Current financial
assets |
|
|
(13,918 |
) |
|
|
|
(13,865 |
) |
|
|
(53 |
) |
|
Disposals: |
|
|
|
|
|
|
|
|
|
Intangible assets |
|
|
- |
|
|
|
|
(30 |
) |
|
|
30 |
|
|
|
Property, plant and
equipment |
|
|
- |
|
|
|
|
(104 |
) |
|
|
104 |
|
|
|
Current financial
assets |
|
|
99 |
|
|
|
|
99 |
|
|
|
- |
|
|
Interest
received |
|
|
709 |
|
|
|
|
466 |
|
|
|
243 |
|
|
Net cash
used by investing activities |
|
|
(56,390 |
) |
|
|
|
(29,470 |
) |
|
|
(26,920 |
) |
|
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Dividends
paid |
|
|
(13,747 |
) |
|
|
|
- |
|
|
|
(13,747 |
) |
|
Increase/(decrease) in bank borrowings: |
|
|
|
|
|
|
|
|
|
Borrowings |
|
|
82,969 |
|
|
|
|
25,978 |
|
|
|
56,991 |
|
|
|
Payments |
|
|
(38,075 |
) |
|
|
|
11,623 |
|
|
|
(49,698 |
) |
|
Other
amounts paid due to financing activities |
|
|
(4,563 |
) |
|
|
|
(3,851 |
) |
|
|
(712 |
) |
|
Net cash
provided (used) by financing activities |
|
|
26,584 |
|
|
|
|
33,750 |
|
|
|
(7,166 |
) |
|
TOTAL NET
CASH FLOWS FOR THE PERIOD |
|
|
24,065 |
|
|
|
|
28,577 |
|
|
|
(4,512 |
) |
|
Beginning
balance of cash and cash equivalents |
|
|
116,666 |
|
|
|
|
114,019 |
|
|
|
116,666 |
|
|
Exchange
differences on cash and cash equivalents in foreign currencies |
|
|
(4,957 |
) |
|
|
|
(6,822 |
) |
|
|
1,865 |
|
|
Ending
balance of cash and cash equivalents |
$ |
|
135,774 |
|
|
$ |
|
135,774 |
|
$ |
|
114,019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Includes
the cash outflow impact of the $32.5M shareholder settlement during
the quarter ended March 31, 2016. |
|
|
|
|
|
|
|
|
|
|
|
|
INVESTOR CONTACT:
Ferroglobe PLC
Joe Ragan, 786-509-6925
Chief Financial Officer
Email: jragan@ferroglobe.com
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