Ferroglobe PLC (NASDAQ:GSM), the world’s leading producer of
silicon metal, and a leading silicon- and manganese-based specialty
alloys producer, announced today results for the fourth quarter and
fiscal year of 2016.
In the fourth quarter of 2016, Ferroglobe posted
a net loss of $(44.4) million, or $(0.23) per share on a fully
diluted basis. In the fiscal year of 2016, Ferroglobe posted a net
loss of $(156.7) million, or $(0.79) per share on a fully diluted
basis. Excluding impairment losses, executive severance expense and
other non-recurring items on an after tax basis, the company posted
an adjusted net loss of $(16.9) million, or $(0.09) per share on a
fully diluted basis for the quarter, and an adjusted net loss of
$(40.6) million, of $(0.24) per share on a fully diluted basis for
the year.
Ferroglobe reported an EBITDA loss of $(23.3)
million for the fourth quarter of 2016 after charging executive
severance expense of $24.4 million and impairment losses of $7.9
million. Excluding these charges, adjusted EBITDA for the fourth
quarter of 2016 was $9.1 million. For full year of 2016, Ferroglobe
reported an EBITDA loss of $(51.9) million due to impairment losses
of $79.9 million and executive severance expense of $24.4 million.
Excluding these charges, adjusted EBITDA for the full year of 2016
was $72.9 million.
Net sales in the fourth quarter of 2016 totaled
$394.4 million, up from $364.7 million in the third quarter of
2016. Net sales in the full year of 2016 totaled $1,580.5 million,
down from $2,039.6 million year-over-year. Over the course of the
fourth quarter of 2016, spot prices for Ferroglobe’s key products
in the United States and Europe increased substantially as compared
to the third quarter of 2016. However, this increase has not been
reflected in Ferroglobe´s selling prices due to time lags in
certain contracts and the existence of fixed priced contracts:
- In the fourth quarter of 2016, the average selling price for
silicon metal was relatively flat from the previous quarter.
- During the fourth quarter, the average selling price for
silicon-based alloys decreased 3.2% from the third quarter of 2016
and the average selling price for manganese alloys increased 3.1%
from the third quarter of 2016.
- During the full year of 2016, the average selling price for
silicon metal declined 18.9%, the average selling price for
silicon-based alloys decreased 15.8% and the average selling price
for manganese alloys decreased 15.6%, each as compared to the
average selling price for the full year of 2015.
In terms of sales volumes, in the fourth quarter
of 2016, silicon metal experienced a 3.53% increase
quarter-over-quarter, silicon alloys experienced a 13.17% increase
quarter-over-quarter, and manganese alloys experienced a 31.26%
increase quarter-over-quarter, reflecting recovery in the
market.
|
|
|
|
|
Year Ended December 31, 2016 |
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
|
Pro forma for the Year Ended December 31, 2015
** |
Shipments
in metric tons: |
|
|
|
|
|
|
|
|
|
Silicon
Metal |
|
|
342,966 |
|
|
83,950 |
|
|
81,091 |
|
|
373,355 |
|
Silicon
Alloys |
|
|
296,969 |
|
|
78,698 |
|
|
69,539 |
|
|
323,761 |
|
Manganese
Alloys |
|
|
271,912 |
|
|
77,927 |
|
|
59,368 |
|
|
264,022 |
|
|
Total shipments* |
|
|
911,847 |
|
|
240,575 |
|
|
209,998 |
|
|
961,138 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
|
Pro forma for the Year Ended December 31, 2015
** |
Average
selling price ($/MT): |
|
|
|
|
|
|
|
Silicon
Metal |
|
$2,200 |
|
$2,075 |
|
$2,090 |
|
$2,713 |
|
Silicon
Alloys |
|
$1,403 |
|
$1,340 |
|
$1,391 |
|
$1,668 |
|
Manganese
Alloys |
|
$827 |
|
$892 |
|
$865 |
|
$986 |
|
|
Total* |
|
$1,531 |
|
$1,451 |
|
$1,512 |
|
$1,887 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
|
Pro forma for the Year Ended December 31, 2015
** |
Average
selling price ($/lb.): |
|
|
|
|
|
|
|
|
Silicon
Metal |
|
$1.00 |
|
$0.94 |
|
$0.95 |
|
$1.23 |
|
Silicon
Alloys |
|
$0.64 |
|
$0.61 |
|
$0.63 |
|
$0.76 |
|
Manganese
Alloys |
|
$0.38 |
|
$0.40 |
|
$0.39 |
|
$0.45 |
|
|
Total* |
|
$0.69 |
|
$0.66 |
|
$0.69 |
|
$0.86 |
|
|
|
|
|
|
|
|
|
|
|
|
* Excludes
by-products and other. |
|
|
|
|
|
|
** |
Represents
combined Globe and FerroAtlantica results on a pro forma
basis. |
|
|
|
“Our fourth quarter earnings are in line with
the guidance provided at our recent trading update. Stabilized
pricing along with strong demand resulted in a more than 8% revenue
increase from the prior quarter,” said CEO Pedro Larrea. “Overall,
market trends continue to move in our favor with gradual price
improvements in silicon metal and silicon alloys and a dramatic
increase in manganese alloys margins. We continue to see strong
demand in our end markets and have entered into sales contracts for
2017 that are 15-20% above fourth quarter spot prices, partially
offset in the short term by the roll-off of high-priced legacy
contracts. After one year as a combined company, we have
successfully integrated the organization, captured enhanced
synergies, strengthened our commercial strategy and restructured
our balance sheet, setting us up for a healthy improvement of our
financials in the wake of the market recovery.”
Mr. Larrea concluded, “We recently filed a
petition with the U.S. Department of Commerce and the U.S.
International Trade Commission, as well as a separate complaint
with the Canada Border Services Agency, seeking relief from
unfairly traded, low-priced imports in North America. Favorable
decisions in these proceedings will positively impact our
profitability.”
Recent developments
On February 1, 2017, Ferroglobe announced the
pricing of $350,000,000 aggregate principal amount of Senior Notes
due 2022. The Notes, co-issued with Globe and guaranteed by certain
of Ferroglobe’s other subsidiaries, bear interest at an annual rate
of 9.375% and were issued at 100% of their nominal value. The
proceeds from the offering of the Notes were used primarily to
repay certain existing indebtedness.
On February 1, 2017, Ferroglobe announced that
it has entered into a definitive agreement to sell the
hydro-electric operations of its non-core Energy segment in Spain
for estimated gross cash proceeds of €255 million (approximately
$270 million). The company continues to work with the relevant
governmental authorities in order to obtain the necessary
regulatory approvals.
On February 20, 2017, the Canada Border Services
Agency announced that is launching an investigation into whether or
not certain silicon metal originating in or exported from Brazil,
Kazakhstan, Malaysia, Norway and Thailand is being sold at unfair
prices in Canada. It will also investigate whether or not subsidies
are being applied to certain silicon metal originating in or
exported from these five countries.
On March 8, 2017, Globe Specialty Metals, Inc.
(”Globe”) a subsidiary of Ferroglobe, filed a petition with the
U.S. Department of Commerce and the U.S. International Trade
Commission to stop and provide relief from unfairly traded silicon
metal imports from Brazil, Kazakhstan, Norway and Australia.
Globe’s petitions outlined deliberate practices by producers from
these four countries to sell silicon metal at artificially low
prices in the U.S.
In another development, Ferroglobe’s Executive
Chairman Javier López Madrid has advised the company that a ruling
was issued by the Spanish High Court (Audiencia Nacional) on
February 23, 2017, pursuant to which he has been
convicted, together with 64 other former directors or
executives of Bankia, S.A. and/or Caja Madrid, of certain
charges as an accessory (not as an author) in connection with the
alleged misuse of corporate credit cards for €34,807.81 in
expenditures between 2010 and 2012 while he was a non-executive
director of Bankia, S.A. and Caja Madrid (this proceeding has
previously been disclosed by Ferroglobe in its regulatory filings).
The directors and executives of the bank over a period of 25 years
were granted corporate credit cards as part of their remuneration,
an arrangement that has been deemed unlawful pursuant to the
ruling. All these events took place prior to Mr. López Madrid
joining Ferroglobe. Mr. López Madrid has advised the company that
he has filed an appeal with the Spanish Supreme Court (Tribunal
Supremo) in response to the ruling and will continue to defend
himself vigorously in this matter. The Ferroglobe
Board of Directors has reviewed the developments in this legal
proceeding, agreed that Mr. López Madrid remain as a director and
continues to support him in his role as Executive Chairman.
Focus on cost management, cash-flow
generation and synergy attainment
Ferroglobe reported an EBITDA loss of $(23.3) million for the
fourth quarter of 2016. Excluding charges related to asset and
inventory impairments, and executive severance expense, adjusted
EBITDA for the fourth quarter of 2016 was $9.1 million.
Ferroglobe maintains its expectations for
synergy attainment to $85 million on an annual basis, up from $65
million previously. The company has achieved a total of $57 million
of savings from synergies for the full year of 2016, implying a
run-rate of $72 million in the fourth quarter of 2016. Production
costs were reduced by 13% for the full year of 2016.
Ferroglobe generated operating cash flows of
$38.1 million in the fourth quarter of 2016, and $114.4 million for
the full year of 2016. Part of the operating cash flows comes from
working capital improvements of $54.7 million during the fourth
quarter of 2016, bringing improvements for the full year of 2016 to
$191.2 million. The company generated $75.9 million of free cash
flow in the fiscal year of 2016, of which $20.3 million was
generated during the fourth quarter of 2016.1 Ferroglobe’s net
debt was $404.6 million at the end of the fourth quarter of 2016,
compared to $430 million at the end of third quarter of 2016.
1 Free cash-flow defined as “Net cash
provided by operating activities” minus “Payments for property,
plant and equipment.”
Adjusted EBITDA:
|
|
|
|
|
|
|
|
|
Year Ended |
|
Quarter Ended |
|
Quarter Ended |
|
|
December 31, 2016 |
|
December 31, 2016 |
|
September 30, 2016 |
Loss
attributable to the parent |
$ |
(136,552 |
) |
|
(40,092 |
) |
|
(28,523 |
) |
Loss attributable to
non-controlling interest |
|
(20,186 |
) |
|
(4,350 |
) |
|
(2,545 |
) |
Income tax benefit |
|
(57,556 |
) |
|
(19,137 |
) |
|
(10,158 |
) |
Net finance
expense |
|
28,715 |
|
|
7,499 |
|
|
6,693 |
|
Exchange
differences |
|
3,507 |
|
|
627 |
|
|
876 |
|
Depreciation and
amortization charges, operating allowances and write-downs |
|
130,172 |
|
|
32,200 |
|
|
30,440 |
|
EBITDA |
|
(51,900 |
) |
|
(23,253 |
) |
|
(3,217 |
) |
Transaction and due
diligence expenses |
|
7,979 |
|
|
- |
|
|
111 |
|
Impairment loss |
|
74,465 |
|
|
6,834 |
|
|
9,043 |
|
Globe purchase price
allocation adjustments |
|
10,022 |
|
|
- |
|
|
- |
|
Business
interruption |
|
2,532 |
|
|
- |
|
|
2,532 |
|
Inventory
impairment |
|
5,410 |
|
|
1,080 |
|
|
4,330 |
|
Executive
severance |
|
24,430 |
|
|
24,430 |
|
|
- |
|
Adjusted
EBITDA, excluding above items |
$ |
72,938 |
|
|
9,091 |
|
|
12,799 |
|
|
|
|
|
|
|
|
Adjusted diluted loss per share:
|
|
Year Ended December 31, 2016 |
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
Diluted loss
per ordinary share |
|
(0.79 |
) |
|
(0.23 |
) |
|
(0.17 |
) |
Tax rate
adjustment |
|
0.06 |
|
|
0.01 |
|
|
0.01 |
|
Transaction and due diligence expenses |
|
0.03 |
|
|
- |
|
|
- |
|
Impairment loss |
|
0.29 |
|
|
0.03 |
|
|
0.04 |
|
Globe
purchase price allocation adjustments |
|
0.04 |
|
|
- |
|
|
- |
|
Business
interruption |
|
0.01 |
|
|
- |
|
|
0.01 |
|
Inventory
impairment |
|
0.02 |
|
|
- |
|
|
0.02 |
|
Executive
severance |
|
0.10 |
|
|
0.10 |
|
|
- |
|
Adjusted diluted loss per ordinary
share |
|
(0.24 |
) |
|
(0.09 |
) |
|
(0.09 |
) |
|
|
|
|
|
|
|
Adjusted net loss attributable to
Ferroglobe:
|
|
|
Year Ended December 31, 2016 |
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
|
|
|
|
|
|
|
|
Loss attributable to the parent |
|
$ |
(136,552 |
) |
|
(40,092 |
) |
|
(28,523 |
) |
Tax rate
adjustment |
|
|
11,018 |
|
|
1,208 |
|
|
3,035 |
|
Transaction and due diligence expenses |
|
|
5,426 |
|
|
- |
|
|
75 |
|
Impairment loss |
|
|
50,636 |
|
|
4,648 |
|
|
6,149 |
|
Globe
purchase price allocation adjustments |
|
|
6,815 |
|
|
- |
|
|
- |
|
Business
interruption |
|
|
1,722 |
|
|
- |
|
|
1,722 |
|
Inventory
impairment |
|
|
3,679 |
|
|
735 |
|
|
2,944 |
|
Executive
severance |
|
|
16,612 |
|
|
16,612 |
|
|
- |
|
Adjusted loss attributable to the parent |
|
$ |
(40,644 |
) |
|
(16,889 |
) |
|
(14,598 |
) |
|
|
|
|
|
|
|
|
Conference Call
Ferroglobe will review the results for the fourth quarter of
2016 results during a conference call at 9:00 a.m. Eastern Time on
March 17, 2017. The dial-in number for the call for participants in
the United States is 877-293-5491 (conference ID 88145142).
International callers should dial +1 914-495-8526 (conference ID
88145142). 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/qfukfe99.
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” or “forecast,”
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 not 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 for 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 the parent and adjusted diluted loss per ordinary
share are pertinent non-GAAP financial metrics that Ferroglobe
utilizes to measure its 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 U.S. GAAP
financial measures. Reconciliations of these measures to the
comparable U.S. 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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
|
Quarter Ended December 31, 2016 |
|
|
Quarter Ended September 30, 2016 |
|
|
Year Ended December 31, 2015 * |
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
1,580,524 |
|
|
$ |
394,365 |
|
|
$ |
364,727 |
|
|
$ |
2,039,608 |
|
Cost of
sales |
|
|
(1,049,994 |
) |
|
|
(278,756 |
) |
|
|
(236,631 |
) |
|
|
(1,225,313 |
) |
Other
operating income |
|
|
29,339 |
|
|
|
18,326 |
|
|
|
4,963 |
|
|
|
20,455 |
|
Staff
costs |
|
|
(294,629 |
) |
|
|
(87,810 |
) |
|
|
(67,586 |
) |
|
|
(330,382 |
) |
Other
operating expense |
|
|
(243,594 |
) |
|
|
(63,789 |
) |
|
|
(60,490 |
) |
|
|
(351,929 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
(130,172 |
) |
|
|
(32,200 |
) |
|
|
(30,440 |
) |
|
|
(141,097 |
) |
Impairment losses |
|
|
(75,089 |
) |
|
|
(7,458 |
) |
|
|
(9,044 |
) |
|
|
(52,042 |
) |
Other
gain (loss) |
|
|
1,543 |
|
|
|
1,869 |
|
|
|
844 |
|
|
|
(3,473 |
) |
Operating loss |
|
|
(182,072 |
) |
|
|
(55,453 |
) |
|
|
(33,657 |
) |
|
|
(44,173 |
) |
Finance
income |
|
|
1,554 |
|
|
|
321 |
|
|
|
548 |
|
|
|
1,343 |
|
Finance
expense |
|
|
(30,269 |
) |
|
|
(7,820 |
) |
|
|
(7,241 |
) |
|
|
(34,521 |
) |
Exchange
differences |
|
|
(3,507 |
) |
|
|
(627 |
) |
|
|
(876 |
) |
|
|
29,993 |
|
Loss before tax |
|
|
(214,294 |
) |
|
|
(63,579 |
) |
|
|
(41,226 |
) |
|
|
(47,358 |
) |
Income
tax benefit (expense) |
|
|
57,556 |
|
|
|
19,137 |
|
|
|
10,158 |
|
|
|
(62,546 |
) |
Loss for the period |
|
|
(156,738 |
) |
|
|
(44,442 |
) |
|
|
(31,068 |
) |
|
|
(109,904 |
) |
Loss
attributable to non-controlling interest |
|
|
20,186 |
|
|
|
4,350 |
|
|
|
2,545 |
|
|
|
13,308 |
|
Loss attributable to the parent |
|
$ |
(136,552 |
) |
|
$ |
(40,092 |
) |
|
$ |
(28,523 |
) |
|
$ |
(96,596 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
|
(51,900 |
) |
|
|
(23,253 |
) |
|
|
(3,217 |
) |
|
|
96,924 |
|
Adjusted
EBITDA |
|
|
72,938 |
|
|
|
9,091 |
|
|
|
12,799 |
|
|
|
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 |
|
|
(0.79 |
) |
|
|
(0.23 |
) |
|
|
(0.17 |
) |
|
|
|
Diluted |
|
|
(0.79 |
) |
|
|
(0.23 |
) |
|
|
(0.17 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* -
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) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
|
|
|
|
2016 |
|
2016 |
|
2015 |
|
ASSETS |
|
Non-current assets |
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
402,491 |
|
402,491 |
|
403,929 |
|
Other intangible assets |
|
|
62,838 |
|
70,130 |
|
71,619 |
|
Property, plant and equipment |
|
|
900,199 |
|
929,217 |
|
1,012,367 |
|
Non-current financial assets |
|
|
15,668 |
|
10,541 |
|
9,672 |
|
Deferred tax assets |
|
|
49,242 |
|
55,228 |
|
36,098 |
|
Non-current receivables from related parties |
|
|
2,108 |
|
2,233 |
|
- |
|
Other non-current assets |
|
|
20,828 |
|
21,302 |
|
20,615 |
|
Total non-current assets |
|
|
1,453,374 |
|
1,491,142 |
|
1,554,300 |
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
312,800 |
|
369,996 |
|
425,372 |
|
Trade and other receivables |
|
|
213,427 |
|
197,817 |
|
275,254 |
|
Current receivables from related parties |
|
|
14,763 |
|
10,312 |
|
10,950 |
|
Current income tax assets |
|
|
43,264 |
|
30,826 |
|
9,273 |
|
Current financial assets |
|
|
4,049 |
|
14,204 |
|
4,112 |
|
Other current assets |
|
|
24,521 |
|
13,236 |
|
10,134 |
|
Cash and cash equivalents |
|
|
196,982 |
|
119,166 |
|
116,666 |
|
Total current assets |
|
|
809,806 |
|
755,557 |
|
851,761 |
|
Total assets |
|
$ |
2,263,180 |
|
2,246,699 |
|
2,406,061 |
|
EQUITY AND LIABILITIES |
|
Equity |
|
$ |
1,093,353 |
|
1,170,774 |
|
1,294,973 |
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Deferred income |
|
|
3,949 |
|
5,259 |
|
4,389 |
|
Provisions |
|
|
81,836 |
|
85,846 |
|
81,853 |
|
Bank borrowings |
|
|
179,879 |
|
96,870 |
|
223,676 |
|
Obligations under finance leases |
|
|
74,261 |
|
79,780 |
|
89,768 |
|
Other financial liabilities |
|
|
92,043 |
|
7,748 |
|
7,549 |
|
Other non-current liabilities |
|
|
5,737 |
|
4,295 |
|
4,517 |
|
Deferred tax liabilities |
|
|
159,142 |
|
178,577 |
|
206,648 |
|
Total non-current liabilities |
|
|
596,847 |
|
458,375 |
|
618,400 |
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Provisions |
|
|
16,868 |
|
17,688 |
|
9,010 |
|
Bank borrowings |
|
|
241,412 |
|
357,004 |
|
182,554 |
|
Obligations under finance leases |
|
|
12,359 |
|
15,118 |
|
13,429 |
|
Other financial liabilities |
|
|
1,592 |
|
- |
|
- |
|
Payables to related parties |
|
|
8,320 |
|
6,220 |
|
7,827 |
|
Trade and other payables |
|
|
163,832 |
|
150,733 |
|
147,073 |
|
Current income tax liabilities |
|
|
5,300 |
|
4,987 |
|
10,887 |
|
Other current liabilities |
|
|
123,297 |
|
65,800 |
|
121,908 |
|
Total current liabilities |
|
|
|
572,980 |
|
617,550 |
|
492,688 |
|
Total equity and liabilities |
|
$ |
2,263,180 |
|
2,246,699 |
|
2,406,061 |
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe PLC and Subsidiaries |
Unaudited Condensed Consolidated Statement of Cash
Flows |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2016 |
|
|
Quarter Ended December 31, 2016 |
|
Quarter Ended September 30, 2016 |
CASH FLOWS
FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Loss for
the period |
|
$ |
(156,738 |
) |
|
$ |
(44,442 |
) |
$ |
(31,068 |
) |
Adjustments
to reconcile net loss to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
Income tax benefit |
|
|
(57,556 |
) |
|
|
(19,137 |
) |
|
(10,158 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
130,172 |
|
|
|
32,200 |
|
|
30,440 |
|
Finance income |
|
|
(1,554 |
) |
|
|
(321 |
) |
|
(548 |
) |
Finance expense |
|
|
30,269 |
|
|
|
7,820 |
|
|
7,241 |
|
Exchange differences |
|
|
3,507 |
|
|
|
627 |
|
|
876 |
|
Impairment losses |
|
|
75,089 |
|
|
|
7,458 |
|
|
9,044 |
|
Loss on disposals of non-current and financial assets |
|
|
308 |
|
|
|
(100 |
) |
|
217 |
|
Other adjustments |
|
|
(1,851 |
) |
|
|
(6,099 |
) |
|
3,269 |
|
Changes in
operating assets and liabilities |
|
|
|
|
|
|
|
|
Decrease in inventories |
|
|
103,243 |
|
|
|
43,412 |
|
|
2,135 |
|
Decrease in trade receivables |
|
|
36,888 |
|
|
|
(34,895 |
) |
|
17,547 |
|
Increase in trade payables |
|
|
30,662 |
|
|
|
29,569 |
|
|
9,834 |
|
Other* |
|
|
(27,651 |
) |
|
|
31,853 |
|
|
(603 |
) |
Income
taxes (paid) received |
|
|
(23,437 |
) |
|
|
(3,249 |
) |
|
(8,911 |
) |
Interest
paid |
|
|
(26,925 |
) |
|
|
(6,619 |
) |
|
(6,837 |
) |
Net cash
provided by operating activities |
|
|
114,426 |
|
|
|
38,077 |
|
|
22,478 |
|
CASH FLOWS
FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Payments
due to investments: |
|
|
|
|
|
|
|
|
Other intangible assets |
|
|
(4,184 |
) |
|
|
(1,641 |
) |
|
(2,020 |
) |
Property, plant and equipment |
|
|
(71,037 |
) |
|
|
(17,748 |
) |
|
(10,805 |
) |
Non-current financial assets |
|
|
(7,659 |
) |
|
|
(6,975 |
) |
|
(411 |
) |
Current financial assets |
|
|
(6 |
) |
|
|
9,924 |
|
|
3,988 |
|
Disposals: |
|
|
|
|
|
|
|
|
Intangible assets |
|
|
- |
|
|
|
- |
|
|
- |
|
Property, plant and equipment |
|
|
- |
|
|
|
- |
|
|
- |
|
Current financial assets |
|
|
- |
|
|
|
- |
|
|
(99 |
) |
Interest
received |
|
|
1,825 |
|
|
|
(212 |
) |
|
1,328 |
|
Net cash
used by investing activities |
|
|
(81,061 |
) |
|
|
(16,652 |
) |
|
(8,019 |
) |
CASH FLOWS
FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Dividends
paid |
|
|
(54,988 |
) |
|
|
(13,745 |
) |
|
(27,496 |
) |
Increase/(decrease) in bank borrowings: |
|
|
|
|
|
|
|
|
Borrowings |
|
|
200,182 |
|
|
|
94,851 |
|
|
22,362 |
|
Payments |
|
|
(81,237 |
) |
|
|
(23,539 |
) |
|
(19,623 |
) |
Other
amounts paid due to financing activities |
|
|
(14,040 |
) |
|
|
(5,727 |
) |
|
(3,750 |
) |
Net cash
provided (used) by financing activities |
|
|
49,917 |
|
|
|
51,840 |
|
|
(28,507 |
) |
TOTAL NET
CASH FLOWS FOR THE PERIOD |
|
|
83,282 |
|
|
|
73,265 |
|
|
(14,048 |
) |
Beginning
balance of cash and cash equivalents |
|
|
116,666 |
|
|
|
119,166 |
|
|
135,774 |
|
Exchange
differences on cash and cash equivalents in foreign currencies |
|
|
(2,966 |
) |
|
|
4,551 |
|
|
(2,560 |
) |
Ending
balance of cash and cash equivalents |
|
$ |
196,982 |
|
|
$ |
196,982 |
|
$ |
119,166 |
|
|
|
|
|
|
|
|
|
|
|
* Includes
the cash outflow impact of the $32.5M shareholder settlement during
the quarter ended March 31, 2016. |
|
|
|
|
|
|
|
|
|
|
INVESTOR CONTACT:
Ferroglobe PLC
Joe Ragan, US: 001-786-509-6925, UK: +44 (0) 7827 227 688
Chief Financial Officer
Email: jragan@ferroglobe.com
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