Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the
“Parent”), the world’s leading producer of silicon metal, and a
leading silicon- and manganese-based specialty alloys producer,
today announced results for the fourth quarter and full year
2018.
Q4 2018 Earnings
Highlights
“Volumes were strong in Q4, compensating for
some of the weakness we experienced at the end of Q3, while pricing
in our main products weakened further as a result of challenging
market conditions,” said Pedro Larrea, CEO of Ferroglobe. “Our cash
generating initiatives in the second half of 2018 delivered a
significantly improved balance sheet at the end of the year.”
In Q4 2018, Ferroglobe posted a net loss of
$(15.2) million, or $(0.08) per share. On an adjusted basis, Q4
2018 net loss was $(7.0) million, or $(0.05) per share.
Q4 2018 reported EBITDA was $27.1 million, down
from $45.0 million in the prior quarter. On an adjusted basis, Q4
2018 EBITDA was $32.1 million, down 28.7% from Q3 2018 adjusted
EBITDA of $45.0 million. The Company reported adjusted EBITDA
margin of 5.3% for Q4 2018, compared to adjusted EBITDA margin of
8.5% for Q3 2018.
Full Year 2018 Earnings
Highlights
For Full Year 2018, Ferroglobe posted a net
profit of $83.5 million, or $0.52 per share. On an adjusted basis,
Full Year 2018 net profit was $52.1 million, or $0.28 per
share.
For the Full Year 2018 reported EBITDA was
$296.5 million, up 105.6% from $144.2 million in the prior year.
2018 adjusted EBITDA was $253.1 million, up 37.1% from $184.5
million in 2017. The Company reported adjusted EBITDA margins of
11.1% for Full Year 2018, compared to adjusted EBITDA margins of
10.6% for 2017.
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Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
$,000 (Unaudited) |
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
|
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|
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|
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|
Revenue |
$ |
603,519 |
|
$ |
526,838 |
|
$ |
468,218 |
|
$ |
2,274,038 |
|
$ |
1,741,693 |
Net (loss) profit |
$ |
(15,244) |
|
$ |
(2,916) |
|
$ |
6,280 |
|
$ |
83,484 |
|
$ |
(5,822) |
Diluted EPS |
$ |
(0.08) |
|
$ |
(0.01) |
|
$ |
0.04 |
|
$ |
0.52 |
|
$ |
(0.00) |
Adjusted net (loss)
income attributable to the parent |
$ |
(7,006) |
|
$ |
77 |
|
$ |
8,056 |
|
$ |
52,050 |
|
$ |
18,516 |
Adjusted diluted
EPS |
$ |
(0.05) |
|
$ |
0.00 |
|
$ |
0.05 |
|
$ |
0.28 |
|
$ |
0.11 |
Adjusted EBITDA |
$ |
32,111 |
|
$ |
45,042 |
|
$ |
53,670 |
|
$ |
253,053 |
|
$ |
184,533 |
Adjusted EBITDA
margin |
|
5.3% |
|
|
8.5% |
|
|
11.5% |
|
|
11.1% |
|
|
10.6% |
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|
Mr. Larrea continued: “Full year 2018 results
are the strongest in Ferroglobe’s history, although our performance
in the latter half of the year suffered as a result of
deteriorating market conditions. We reacted promptly to this change
by optimizing our global production platform while maintaining the
flexibility to seize opportunities as the market recovers. We
have curtailed production in our silicon metal and manganese-based
alloys businesses. That said, market conditions remain challenging
and we continue to look at further measures to control our costs,
improve our financial performace and deliver free cash
flow.”
Cash Flow and Balance
Sheet
Cash flow generated by our operations during Q4
2018 was $109.2 million, with working capital decreasing
by $84.1 million. Net debt was $428.8 million as of December
31, 2018, significantly down from $510.9 million as of September
30, 2018. Mr. Larrea added: “We have delivered on all our
cash generating initiatives in the second half of 2018 and achieved
a greater than expected net debt reduction. Through this effort, we
have been able to navigate a complex 2018. We added
significant new assets in the first half and then encountered
deteriorating market conditions in the second half and still ended
the year overall with nearly breakeven free cash flow, which
includes all cash flows used in investing activities.”
On February 22, 2019, Ferroglobe obtained the
consent of its lenders for an amendment to its revolving credit
facility that affords the Company additional flexibility under its
financial maintenance covenants in the coming quarters. The
amendment suspends the existing covenant to maintain a maximum
total net leverage ratio during an interim period beginning with
the first quarter of 2019 through the first fiscal quarter of 2020,
and provides a new covenant to maintain a maximum secured net
leverage ratio and a new covenant to maintain a minimum cash
liquidity level. The new covenants will be in effect only during
the interim period, after which the existing covenant to maintain a
maximum total net leverage ratio will be reinstated. The
amendment also reduced the aggregate commitments under the
revolving credit facility from $250 million to $200 million.
“Our top priority remains focusing on our
financial performance and generating cash flow through improvements
in operations, reductions in working capital, divestiture of
non-core assets, and lowered interest expense,” added Mr. Larrea.
“We expect to continue to reduce our net debt through the first
half of 2019. The renegotiated terms of our revolving credit
facility reinforce the strength of our balance sheet and our
ability to face evolving market conditions with confidence.”
Discussion of Fourth Quarter
2018 Results
The Company notes that the financial results
presented for the fourth quarter and for full year 2018 are
unaudited and may be subsequently adjusted for items including
impairment of long-lived assets such as the assets associated with
our solar-grade silicon project. Any subsequent changes, if
required, will be reflected in our audited Annual Report on Form
20-F.
Sales
Sales for the three months ended December 31,
2018 of $603.5 million were 28.9% higher than sales of $468.2
million for the three months ended December 31, 2017. Total
shipments in the fourth quarter of 2018 were up 42.1% and the
average selling price was down 10.9% versus the same period in the
prior year. Sales for the full year 2018 of $2,274 million were up
30.6% compared to $1,742 million for 2017. For the full year, total
shipments were up 23.3% and the average selling price was up 5.9%
compared with 2017. Sales for the fourth quarter of 2018 and the
full year benefited from the Company’s manganese-based alloy plants
in Mo i Rana (Norway) and Dunkirk (France), acquired on February 1,
2018, albeit partially offset by lower average selling
prices.
Sales Prices & Volumes By Product
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Quarter Ended |
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Quarter Ended |
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Quarter Ended |
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Year Ended |
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Year Ended |
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December 31,2018 |
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September 30,2018 |
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Change |
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December 31,2017 |
|
Change |
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December 31,2018 |
|
December 31,2017 |
|
Change |
Shipments in
metric tons: |
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Silicon
Metal |
|
|
93,364 |
|
|
81,686 |
|
14.3% |
|
|
83,785 |
|
11.4% |
|
|
352,578 |
|
|
325,884 |
|
8.2% |
Silicon-based Alloys |
|
|
81,197 |
|
|
75,964 |
|
6.9% |
|
|
70,399 |
|
15.3% |
|
|
311,703 |
|
|
283,021 |
|
10.1% |
Manganese-based Alloys |
|
|
147,445 |
|
|
98,280 |
|
50.0% |
|
|
72,374 |
|
103.7% |
|
|
424,358 |
|
|
274,119 |
|
54.8% |
Total
shipments* |
|
|
322,006 |
|
|
255,930 |
|
25.8% |
|
|
226,558 |
|
42.1% |
|
|
1,088,639 |
|
|
883,024 |
|
23.3% |
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Average selling
price ($/MT): |
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Silicon
Metal |
|
$ |
2,429 |
|
$ |
2,636 |
|
-7.9% |
|
$ |
2,440 |
|
-0.5% |
|
$ |
2,647 |
|
$ |
2,270 |
|
16.6% |
Silicon-based Alloys |
|
$ |
1,719 |
|
$ |
1,802 |
|
-4.6% |
|
$ |
1,741 |
|
-1.3% |
|
$ |
1,845 |
|
$ |
1,608 |
|
14.7% |
Manganese-based Alloys |
|
$ |
1,158 |
|
$ |
1,211 |
|
-4.4% |
|
$ |
1,346 |
|
-14.0% |
|
$ |
1,244 |
|
$ |
1,327 |
|
-6.3% |
Total* |
|
$ |
1,668 |
|
$ |
1,841 |
|
-9.4% |
|
$ |
1,873 |
|
-10.9% |
|
$ |
1,870 |
|
$ |
1,765 |
|
5.9% |
|
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Average selling
price ($/lb.): |
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Silicon
Metal |
|
$ |
1.10 |
|
$ |
1.20 |
|
-7.9% |
|
$ |
1.11 |
|
-0.5% |
|
$ |
1.20 |
|
$ |
1.03 |
|
16.6% |
Silicon-based Alloys |
|
$ |
0.78 |
|
$ |
0.82 |
|
-4.6% |
|
$ |
0.79 |
|
-1.3% |
|
$ |
0.84 |
|
$ |
0.73 |
|
14.7% |
Manganese-based Alloys |
|
$ |
0.53 |
|
$ |
0.55 |
|
-4.4% |
|
$ |
0.61 |
|
-14.0% |
|
$ |
0.56 |
|
$ |
0.60 |
|
-6.3% |
Total* |
|
$ |
0.76 |
|
$ |
0.84 |
|
-9.4% |
|
$ |
0.85 |
|
-10.9% |
|
$ |
0.85 |
|
$ |
0.80 |
|
5.9% |
|
|
|
|
|
|
|
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*
Excludes by-products and other |
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During Q4 2018, the average selling prices
decreased between 4% and 8% for all of our products
quarter-over-quarter, reflecting weak overall market conditions.
Average selling prices for 2018 are well above 2017 for silicon
metal and silicon-based alloys. Manganese-based alloys prices in
2018 have deteriorated significantly despite persistently high ore
prices. We expect the relationship between market prices of
manganese-based alloys and ore prices to revert to its historical
correlation over time.
Sales volumes in Q4 significantly increased as
compared to Q3, partly because of delayed shipments at the end of
Q3. Activity in full year 2018 has shown healthy growth
overall, with volume increases over 2017 of 8% to 10% in silicon
metal and silicon-based alloys, respectively. A year-to-year
comparison of manganese-based alloys volumes is not meaningful in
light of the Company’s acquisition of new manganese-based alloy
assets in early 2018.
Cost of Sales
Cost of sales was $445.8 million for the three
months ended December 31, 2018, an increase from $284.6 million for
the three months ended December 31, 2017, primarily driven by
higher volumes and higher input costs for raw materials and energy.
Cost of sales was $1,444.8 million for the full year 2018, an
increase from $1,043.4 million for the same period in 2017,
primarily driven by higher sales and increases in energy and raw
material prices, particularly the prices of manganese ore and
electrodes.
Staff Costs and Other Operating Expenses
Staff costs and other operating expenses for the
three months and full year ended December 31, 2018 were $154.4
million and $625.0 million, respectively compared to $142.2 million
and $541.9 million for the corresponding periods in 2017. The
increases were primarily related to labour costs for the newly
acquired manganese-based alloy plants.
Operating (Loss) Profit
Operating (loss) profit was $(3.0) million and
$177.4 million, respectively for the three months and full year
periods ended December 31, 2018, compared to an operating loss of
$(1.6) million and an operating profit of $39.7 million for the
three months and full year ended December 31, 2017. Included in the
full year 2018 was a $37.3 million bargain purchase gain related to
the Company’s purchase of manganese-based alloy plants mentioned
above. The bargain purchase gain was reduced by $7.4 million
in the forth quarter of 2018 as a result of purchase price
accounting adjustments.
Net (Loss) Profit Attributable to the Parent
As a result of the various factors described
above, we reported a net (loss) attributable to the Parent of
$(13.3) million, or $(0.08) per share, for the three months ended
December 31, 2018 compared to a net profit attributable to the
Parent of $6.4 million, or $0.04 for the three months ended
December 31, 2017. We reported net income attributable to the
Parent of $89.5 million, or $0.52 per share, for the full year
2018, compared to a net loss of $(0.7) million, or ($0.00) per
share for 2017.
Adjusted EBITDA
Adjusted EBITDA of $32.1 million, or 5.3% of
sales, for the three months ended December 31, 2018 was lower than
adjusted EBITDA of $53.7 million, or 11.5% of sales, for the three
months ended December 31, 2017. Adjusted EBITDA of $253.1 million,
or 11.1% of sales for the full year 2018, was higher than adjusted
EBITDA of $184.5 million, or 10.6% of sales for
2017.
Other recent
developments
Phillip Murnane has taken a temporary medical
leave of absence from his duties as Chief Financial Officer and we
expect him to be on leave for the next few weeks. During Phil’s
absence, José M. Calvo-Sotelo (Deputy CFO and EVP - Corporate
Development of Ferroglobe and former CFO of Grupo FerroAtlántica),
is assuming the duties of the CFO.
Conference Call
Ferroglobe management will review the
fourth quarter and full year results of 2018 during a conference
call at 9:00 a.m. Eastern Time on February 26, 2019.
The dial-in number for participants in the
United States is 877‑293‑5491 (conference ID 4581015).
International callers should dial +1 914‑495‑8526 (conference ID
4581015). Please dial in at least five minutes prior to the call to
register. The call may also be accessed via an audio webcast
available
at https://edge.media-server.com/m6/p/sjakzohb.
About Ferroglobe
Ferroglobe 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 U.S. securities laws.
Forward-looking statements are not historical facts but are based
on certain assumptions of management and describe the Company’s
future plans, strategies and expectations. Forward-looking
statements often use forward-looking terminology, including words
such as “anticipate”, “believe”, “could”, “estimate”, “expect”,
“forecast”, “guidance”, “intends”, “likely”, “may”, “plan”,
“potential”, “predicts”, “seek”, “will” and words of similar
meaning or the negative thereof.
Forward-looking statements contained in this
press release are based on information currently available to the
Company and assumptions that management believe to be reasonable,
but are inherently uncertain. As a result, Ferroglobe’s actual
results, performance or achievements may differ materially from
those expressed or implied by these forward-looking statements,
which are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors that are, in
some cases, beyond the Company’s control.
Forward-looking financial information and other
metrics presented herein represent the Company’s goals and are not
intended as guidance or projections for the periods referenced
herein or any future periods.
All information in this press release is as of
the date of its release. Ferroglobe does not undertake
any obligation to update publicly any of the forward-looking
statements contained herein to reflect new information, events or
circumstances arising after the date of this press release. You
should not place undue reliance on any forward-looking statements,
which are made only as of the date of this press release.
Non-IFRS Measures
EBITDA, adjusted EBITDA, adjusted (loss) profit
per ordinary share, and adjusted (loss) profit are non-IFRS
financial metrics that, we believe, are pertinent measures of
Ferroglobe’s success.
Ferroglobe has included these financial
metrics to provide supplemental measures of its performance. The
Company believes these metrics are important because they eliminate
items that have less bearing on the Company’s current and future
operating performance and highlight trends in its core business
that may not otherwise be apparent when relying solely on IFRS
financial measures.
INVESTOR CONTACT:
José M. Calvo-SoteloDeputy Chief Financial Officer & EVP -
Corporate DevelopmentTel: +44
203-129-2420Email: jmcalvosotelo@ferroglobe.com
|
|
|
Ferroglobe PLC and Subsidiaries |
Unaudited Condensed Consolidated Income
Statement |
(in thousands of U.S. dollars, except per
share amounts) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
Sales |
$ |
603,519 |
|
$ |
526,838 |
|
$ |
468,218 |
|
$ |
2,274,038 |
|
$ |
1,741,693 |
Cost of
sales |
|
(445,772) |
|
|
(334,526) |
|
|
(284,614) |
|
|
(1,444,793) |
|
|
(1,043,395) |
Other
operating income |
|
25,039 |
|
|
5,701 |
|
|
5,158 |
|
|
46,037 |
|
|
18,199 |
Staff
costs |
|
(81,209) |
|
|
(88,668) |
|
|
(87,127) |
|
|
(341,043) |
|
|
(301,963) |
Other
operating expense |
|
(73,160) |
|
|
(64,524) |
|
|
(55,052) |
|
|
(283,930) |
|
|
(239,926) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
(30,062) |
|
|
(30,750) |
|
|
(23,830) |
|
|
(119,137) |
|
|
(104,529) |
Bargain
purchase gain |
|
(7,379) |
|
|
— |
|
|
— |
|
|
37,254 |
|
|
— |
Impairment losses |
|
(4,435) |
|
|
— |
|
|
(30,859) |
|
|
(4,435) |
|
|
(30,957) |
Other
gain |
|
10,477 |
|
|
221 |
|
|
6,479 |
|
|
13,413 |
|
|
575 |
Operating (loss) profit |
|
(2,982) |
|
|
14,292 |
|
|
(1,627) |
|
|
177,404 |
|
|
39,697 |
Net
finance expense |
|
(15,676) |
|
|
(13,952) |
|
|
(19,659) |
|
|
(57,196) |
|
|
(61,704) |
Financial derivatives gain (loss) |
|
1,383 |
|
|
388 |
|
|
(956) |
|
|
2,838 |
|
|
(6,850) |
Exchange
differences |
|
(846) |
|
|
(3,071) |
|
|
2,500 |
|
|
(11,896) |
|
|
8,214 |
(Loss) profit before tax |
|
(18,121) |
|
|
(2,343) |
|
|
(19,742) |
|
|
111,150 |
|
|
(20,643) |
Income
tax benefit (expense) |
|
2,877 |
|
|
(573) |
|
|
26,022 |
|
|
(27,666) |
|
|
14,821 |
(Loss) profit for the period |
|
(15,244) |
|
|
(2,916) |
|
|
6,280 |
|
|
83,484 |
|
|
(5,822) |
Loss
attributable to non-controlling interest |
|
1,895 |
|
|
1,671 |
|
|
84 |
|
|
6,040 |
|
|
5,144 |
(Loss) profit attributable to the parent |
$ |
(13,349) |
|
$ |
(1,245) |
|
$ |
6,364 |
|
$ |
89,524 |
|
$ |
(678) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
27,080 |
|
$ |
45,042 |
|
$ |
22,203 |
|
$ |
296,541 |
|
$ |
144,226 |
Adjusted
EBITDA |
$ |
32,111 |
|
$ |
45,042 |
|
$ |
53,670 |
|
$ |
253,053 |
|
$ |
184,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted
average shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
170,183 |
|
|
171,935 |
|
|
171,953 |
|
|
171,406 |
|
|
171,949 |
Diluted |
|
170,183 |
|
|
171,935 |
|
|
172,128 |
|
|
171,530 |
|
|
171,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
per ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.08) |
|
$ |
(0.01) |
|
$ |
0.04 |
|
$ |
0.52 |
|
$ |
(0.00) |
Diluted |
$ |
(0.08) |
|
$ |
(0.01) |
|
$ |
0.04 |
|
$ |
0.52 |
|
$ |
(0.00) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe PLC and Subsidiaries |
Unaudited Condensed Consolidated Statement of
Financial Position |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
December 31, |
|
September 30, |
|
December 31, |
|
2018 |
|
2018 |
|
2017 |
ASSETS |
|
|
|
|
|
|
|
|
Non-current
assets |
|
|
|
|
|
|
|
|
Goodwill |
$ |
202,848 |
|
$ |
204,264 |
|
$ |
205,287 |
Other
intangible assets |
|
65,850 |
|
|
55,997 |
|
|
58,658 |
Property,
plant and equipment |
|
929,421 |
|
|
941,780 |
|
|
917,974 |
Non-current financial assets |
|
72,865 |
|
|
88,199 |
|
|
89,315 |
Deferred
tax assets |
|
3,304 |
|
|
6,679 |
|
|
5,273 |
Non-current receivables from related parties |
|
2,288 |
|
|
2,315 |
|
|
2,400 |
Other
non-current assets |
|
16,887 |
|
|
18,206 |
|
|
30,059 |
Total
non-current assets |
|
1,293,463 |
|
|
1,317,440 |
|
|
1,308,966 |
Current
assets |
|
|
|
|
|
|
|
|
Inventories |
|
459,257 |
|
|
554,676 |
|
|
361,231 |
Trade and
other receivables |
|
156,781 |
|
|
142,233 |
|
|
111,463 |
Current
receivables from related parties |
|
14,226 |
|
|
5,571 |
|
|
4,572 |
Current
income tax assets |
|
27,517 |
|
|
15,848 |
|
|
17,158 |
Current
financial assets |
|
— |
|
|
2 |
|
|
2,469 |
Other
current assets |
|
8,315 |
|
|
12,898 |
|
|
9,926 |
Cash and
cash equivalents |
|
216,562 |
|
|
131,671 |
|
|
184,472 |
Total current
assets |
|
882,658 |
|
|
862,899 |
|
|
691,291 |
Total
assets |
$ |
2,176,121 |
|
$ |
2,180,339 |
|
$ |
2,000,257 |
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
Equity |
$ |
943,788 |
|
$ |
987,388 |
|
$ |
937,758 |
Non-current
liabilities |
|
|
|
|
|
|
|
|
Deferred
income |
|
1,434 |
|
|
4,336 |
|
|
3,172 |
Provisions |
|
75,750 |
|
|
78,846 |
|
|
82,397 |
Bank
borrowings |
|
132,821 |
|
|
133,056 |
|
|
— |
Obligations under finance leases |
|
53,472 |
|
|
57,389 |
|
|
69,713 |
Debt
instruments |
|
341,657 |
|
|
341,102 |
|
|
339,332 |
Other
financial liabilities |
|
32,788 |
|
|
39,867 |
|
|
49,011 |
Other
non-current liabilities |
|
30,369 |
|
|
20,367 |
|
|
3,536 |
Deferred
tax liabilities |
|
68,569 |
|
|
67,513 |
|
|
65,142 |
Total
non-current liabilities |
|
736,860 |
|
|
742,476 |
|
|
612,303 |
Current
liabilities |
|
|
|
|
|
|
|
|
Provisions |
|
40,586 |
|
|
24,308 |
|
|
33,095 |
Bank
borrowings |
|
8,191 |
|
|
1,341 |
|
|
1,003 |
Obligations under finance leases |
|
12,999 |
|
|
13,019 |
|
|
12,920 |
Debt
instruments |
|
10,937 |
|
|
2,734 |
|
|
10,938 |
Other
financial liabilities |
|
52,524 |
|
|
54,027 |
|
|
88,420 |
Payables
to related parties |
|
11,128 |
|
|
12,273 |
|
|
12,973 |
Trade and
other payables |
|
256,823 |
|
|
253,591 |
|
|
192,859 |
Current
income tax liabilities |
|
1,826 |
|
|
6,435 |
|
|
7,419 |
Other
current liabilities |
|
100,459 |
|
|
82,747 |
|
|
90,569 |
Total current
liabilities |
|
495,473 |
|
|
450,475 |
|
|
450,196 |
Total equity
and liabilities |
$ |
2,176,121 |
|
$ |
2,180,339 |
|
$ |
2,000,257 |
|
|
|
|
|
|
|
|
|
|
|
Ferroglobe PLC and Subsidiaries |
Unaudited Condensed Consolidated Statement of
Cash Flows |
(in thousands of U.S. dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
|
December 31, 2018 |
|
December 31, 2017 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit
for the period |
$ |
(15,244) |
|
$ |
(2,916) |
|
|
$ |
83,484 |
|
$ |
(5,822) |
Adjustments to
reconcile net (loss) profit to net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense |
|
(2,877) |
|
|
573 |
|
|
|
27,666 |
|
|
(14,821) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
30,062 |
|
|
30,750 |
|
|
|
119,137 |
|
|
104,529 |
Net
finance expense |
|
15,676 |
|
|
13,952 |
|
|
|
57,196 |
|
|
61,704 |
Financial
derivatives (gain) loss |
|
(1,383) |
|
|
(388) |
|
|
|
(2,838) |
|
|
6,850 |
Exchange
differences |
|
846 |
|
|
3,071 |
|
|
|
11,896 |
|
|
(8,214) |
Impairment losses |
|
4,435 |
|
|
— |
|
|
|
4,435 |
|
|
30,957 |
Bargain
purchase gain |
|
7,379 |
|
|
— |
|
|
|
(37,254) |
|
|
— |
Share-based compensation |
|
1,016 |
|
|
1,050 |
|
|
|
2,798 |
|
|
2,405 |
Other
adjustments |
|
(10,477) |
|
|
(221) |
|
|
|
(13,413) |
|
|
(575) |
Changes in
operating assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Decrease
(increase) in inventories |
|
88,903 |
|
|
(25,666) |
|
|
|
(103,294) |
|
|
(16,274) |
(Increase) decrease in trade receivables |
|
(13,051) |
|
|
6,224 |
|
|
|
(26,597) |
|
|
50,168 |
Increase
(decrease) in trade payables |
|
5,772 |
|
|
(21,213) |
|
|
|
55,410 |
|
|
17,613 |
Other |
|
9,518 |
|
|
10,543 |
|
|
|
(22,892) |
|
|
(12,251) |
Income taxes paid |
|
(6,983) |
|
|
(5,257) |
|
|
|
(36,408) |
|
|
(26,764) |
Interest paid |
|
(4,360) |
|
|
(18,400) |
|
|
|
(43,018) |
|
|
(39,130) |
Net cash
provided (used) by operating activities |
|
109,232 |
|
|
(7,898) |
|
|
|
76,308 |
|
|
150,375 |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Other
intangible assets |
|
(240) |
|
|
(149) |
|
|
|
(3,313) |
|
|
(811) |
Property,
plant and equipment |
|
(30,239) |
|
|
(25,696) |
|
|
|
(108,244) |
|
|
(74,616) |
Other |
|
— |
|
|
— |
|
|
|
(8) |
|
|
(343) |
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
Other
non-current assets |
|
— |
|
|
— |
|
|
|
12,734 |
|
|
— |
Other |
|
— |
|
|
947 |
|
|
|
6,861 |
|
|
— |
Acquisition of
subsidiary |
|
— |
|
|
— |
|
|
|
(20,379) |
|
|
— |
Disposal of
subsidiary |
|
20,533 |
|
|
— |
|
|
|
20,533 |
|
|
— |
Interest and finance
income received |
|
843 |
|
|
638 |
|
|
|
3,833 |
|
|
952 |
Net cash used
by investing activities |
|
(9,103) |
|
|
(24,260) |
|
|
|
(87,983) |
|
|
(74,818) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
— |
|
|
(10,321) |
|
|
|
(20,642) |
|
|
— |
Payment for debt
issuance costs |
|
(429) |
|
|
— |
|
|
|
(4,905) |
|
|
(16,765) |
Repayment of other
financial liabilities |
|
— |
|
|
— |
|
|
|
(33,096) |
|
|
— |
Proceeds from debt
issuance |
|
— |
|
|
— |
|
|
|
— |
|
|
350,000 |
Increase/(decrease) in bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
6,882 |
|
|
25,286 |
|
|
|
252,200 |
|
|
31,455 |
Payments |
|
— |
|
|
— |
|
|
|
(106,514) |
|
|
(453,948) |
Proceeds from stock
option exercises |
|
— |
|
|
— |
|
|
|
240 |
|
|
180 |
Other amounts paid due
to financing activities |
|
(3,177) |
|
|
(3,067) |
|
|
|
(13,879) |
|
|
(24,319) |
Payments to acquire or
redeem own shares |
|
(16,598) |
|
|
(3,502) |
|
|
|
(20,100) |
|
|
— |
Net cash (used)
provided by financing activities |
|
(13,322) |
|
|
8,396 |
|
|
|
53,304 |
|
|
(113,397) |
Total net cash
flows for the period |
|
86,807 |
|
|
(23,762) |
|
|
|
41,629 |
|
|
(37,840) |
Beginning
balance of cash and cash equivalents |
|
131,671 |
|
|
155,984 |
|
|
|
184,472 |
|
|
196,982 |
Exchange
differences on cash and cash equivalents in foreign currencies |
|
(1,916) |
|
|
(551) |
|
|
|
(9,539) |
|
|
25,330 |
Ending balance
of cash and cash equivalents |
$ |
216,562 |
|
$ |
131,671 |
|
|
$ |
216,562 |
|
$ |
184,472 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA ($,000):
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
(Loss) profit
attributable to the parent |
$ |
(13,349) |
|
$ |
(1,245) |
|
$ |
6,364 |
|
$ |
89,524 |
|
$ |
(678) |
Loss
attributable to non-controlling interest |
|
(1,895) |
|
|
(1,671) |
|
|
(84) |
|
|
(6,040) |
|
|
(5,144) |
Income
tax (benefit) expense |
|
(2,877) |
|
|
573 |
|
|
(26,022) |
|
|
27,666 |
|
|
(14,821) |
Net
finance expense |
|
15,676 |
|
|
13,952 |
|
|
19,659 |
|
|
57,196 |
|
|
61,704 |
Financial derivatives (gain) loss |
|
(1,383) |
|
|
(388) |
|
|
956 |
|
|
(2,838) |
|
|
6,850 |
Exchange
differences |
|
846 |
|
|
3,071 |
|
|
(2,500) |
|
|
11,896 |
|
|
(8,214) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
30,062 |
|
|
30,750 |
|
|
23,830 |
|
|
119,137 |
|
|
104,529 |
EBITDA |
|
27,080 |
|
|
45,042 |
|
|
22,203 |
|
|
296,541 |
|
|
144,226 |
Non-controlling interest settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,751 |
Power
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(3,696) |
Long
lived asset charge due to reclassification of discontinued
operations to continuing operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,608 |
Accrual
of contingent liabilities |
|
— |
|
|
— |
|
|
6,044 |
|
|
— |
|
|
12,444 |
Impairment loss |
|
8,255 |
|
|
— |
|
|
30,618 |
|
|
8,255 |
|
|
30,618 |
Business
interruption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,980) |
Revaluation of biological assets |
|
1,144 |
|
|
— |
|
|
(5,195) |
|
|
1,144 |
|
|
(5,195) |
Step-up
valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
3,757 |
Bargain
purchase gain |
|
7,379 |
|
|
— |
|
|
— |
|
|
(37,254) |
|
|
— |
Gain on
sale of hydro plant assets |
|
(11,747) |
|
|
— |
|
|
— |
|
|
(11,747) |
|
|
— |
Share-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
(3,886) |
|
|
— |
Adjusted EBITDA |
$ |
32,111 |
|
$ |
45,042 |
|
$ |
53,670 |
|
$ |
253,053 |
|
$ |
184,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted (loss) profit attributable to
Ferroglobe ($,000):
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
(Loss) profit
attributable to the parent |
$ |
(13,349) |
|
$ |
(1,245) |
|
$ |
6,364 |
|
$ |
89,524 |
|
$ |
(678) |
Tax rate
adjustment |
|
2,922 |
|
|
1,322 |
|
|
(19,705) |
|
|
(7,902) |
|
|
(8,215) |
Non-controlling interest settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,191 |
Power
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(2,513) |
Long
lived asset charge due to reclassification of discontinued
operations to continuing operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,773 |
Accrual
of contingent liabilities |
|
— |
|
|
— |
|
|
4,110 |
|
|
— |
|
|
8,462 |
Impairment loss |
|
5,613 |
|
|
— |
|
|
20,820 |
|
|
5,613 |
|
|
20,820 |
Business
interruption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(1,346) |
Revaluation of biological assets |
|
778 |
|
|
— |
|
|
(3,533) |
|
|
778 |
|
|
(3,533) |
Step-up
valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
2,555 |
Bargain
purchase gain |
|
5,018 |
|
|
— |
|
|
— |
|
|
(25,333) |
|
|
— |
Gain on
sale of hydro plant assets |
|
(7,988) |
|
|
— |
|
|
— |
|
|
(7,988) |
|
|
— |
Share-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
(2,642) |
|
|
— |
Adjusted (loss) profit attributable to the
parent |
$ |
(7,006) |
|
$ |
77 |
|
$ |
8,056 |
|
$ |
52,050 |
|
$ |
18,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted (loss) profit per
share:
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
Year Ended |
|
December 31, 2018 |
|
September 30, 2018 |
|
December 31, 2017 |
|
December 31, 2018 |
|
December 31, 2017 |
Diluted (loss)
profit per ordinary share |
$ |
(0.08) |
|
$ |
(0.01) |
|
$ |
0.04 |
|
$ |
0.52 |
|
$ |
(0.00) |
Tax rate
adjustment |
|
0.02 |
|
|
0.01 |
|
|
(0.11) |
|
|
(0.05) |
|
|
(0.05) |
Non-controlling interest settlement |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
Power
credit |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
Long
lived asset charge due to reclassification of discontinued
operations to continuing operations |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
Accrual
of contingent liabilities |
|
— |
|
|
— |
|
|
0.02 |
|
|
— |
|
|
0.05 |
Impairment loss |
|
0.03 |
|
|
— |
|
|
0.12 |
|
|
0.03 |
|
|
0.12 |
Business
interruption |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(0.01) |
Revaluation of biological assets |
|
0.00 |
|
|
— |
|
|
(0.02) |
|
|
0.00 |
|
|
(0.02) |
Step-up
valuation adjustment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.01 |
Bargain
purchase gain |
|
0.03 |
|
|
— |
|
|
— |
|
|
(0.15) |
|
|
— |
Gain on
sale of hydro plant assets |
|
(0.05) |
|
|
— |
|
|
— |
|
|
(0.05) |
|
|
— |
Share-based compensation |
|
— |
|
|
— |
|
|
— |
|
|
(0.02) |
|
|
— |
Adjusted
diluted (loss) profit per ordinary share |
$ |
(0.05) |
|
$ |
0.00 |
|
$ |
0.05 |
|
$ |
0.28 |
|
$ |
0.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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