Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the
“Parent”), a leading producer globally of silicon metal,
silicon-based and manganese-based specialty alloys, today announced
results for the third quarter of 2020.
Q3
2020 Earnings
Highlights
In Q3 2020, Ferroglobe posted a net loss of $(46.8)
million, or $(0.28) per share on a fully diluted basis. On an
adjusted basis, the Q3 2020 net loss was $(9.3) million, or $(0.14)
per share on a fully diluted basis.
Q3 2020 reported EBITDA was $(12.2) million, down
from $22.1 million in the prior quarter. On an adjusted basis, Q3
2020 EBITDA was $22.2 million, down slightly from Q2 2020 adjusted
EBITDA of $22.4 million. The Company reported an adjusted EBITDA
margin of 8.5% for Q3 2020, compared to an adjusted EBITDA margin
of 9.0% for Q2 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
$,000
(unaudited) |
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
|
$ |
262,673 |
|
|
$ |
250,004 |
|
|
$ |
381,745 |
|
|
$ |
823,899 |
|
|
$ |
1,238,615 |
|
Net (loss) profit |
|
$ |
(46,834 |
) |
|
$ |
(14,035 |
) |
|
$ |
(140,139 |
) |
|
$ |
(109,927 |
) |
|
$ |
(212,351 |
) |
Diluted EPS |
|
$ |
(0.28 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.23 |
) |
Adjusted net (loss) income
attributable to the parent |
|
$ |
(9,332 |
) |
|
$ |
(11,064 |
) |
|
$ |
(16,084 |
) |
|
$ |
(58,108 |
) |
|
$ |
(60,200 |
) |
Adjusted diluted EPS |
|
$ |
(0.14 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.36 |
) |
Adjusted EBITDA |
|
$ |
22,231 |
|
|
$ |
22,413 |
|
|
$ |
(7,210 |
) |
|
$ |
27,027 |
|
|
$ |
1,152 |
|
Adjusted EBITDA margin |
|
|
8.5 |
% |
|
|
9.0 |
% |
|
|
-1.9 |
% |
|
|
3.3 |
% |
|
|
0.1 |
% |
Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “The third quarter results are a confirmation
of the swift actions we have been taking throughout the year to
address the unpredictable circumstances created by COVID-19.
By aligning our cost structure with changes in market conditions
this quarter’s financial performance remained stable.” Dr.
Levi added, “We continue to seek ways to bolster our agility in the
face of the pandemic to ensure the company is well capitalized and
positioned for a market recovery. Our new strategic plan
focuses on elements within our control and aims to improve our
overall competitiveness. During the quarter we made
significant progress setting the foundation throughout the
organization and have started on the execution of specific
initiatives across various functional areas.”
Cash Flow and Balance Sheet
Cash generated from operations during Q3 2020
was $23.0 million, including $33 million in respect the sale
of CO2 emission rights.
Working capital increased by $33 million, from $321
million as of June 30, 2020 to $354 million at September 30, 2020.
The increase is mainly driven by a reduction in accounts payable
and strengthening of the Euro relative to the US Dollar.
Gross debt was $442 million as of September 30,
2020, down from $451 million as of June 30, 2020, primarily as a
result of the senior unsecured notes coupon payment and partial ABL
paydown, partially offset by COVID-19 funding supported by local
governments in France and Canada.
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “Given the challenging market backdrop and
lingering uncertainty we remain focused on cash generation and
preservation. We are making adjustments throughout the
business to ensure a sustainable level of cash to support our
operations and have managed this through a number of initiatives,
including a successful refinancing of the prior accounts
receivables securitization program. At the same time we
continued to reduce our debt balance during the quarter.” Ms.
García-Cos added, “The new strategic plan supports our focus on
further cost reduction and improvement in cash conversion, while
accelerating the Company’s return to
profitability.”COVID-19Since
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.
During the third quarter demand for our products
was adversely impacted by COVID-19. It is difficult to forecast all
the impacts of the COVID-19 pandemic, and such impacts might have a
material adverse effect on our business, results of operations and
financial condition. The Company is continuously evaluating how
evolving customer demand and sales price evolution stand to affect
the Company’s business and results in the next twelve months.
In connection with the preparation of our
consolidated financial statements, we conducted an evaluation as to
whether there were conditions and events, considered in the
aggregate, which raise substantial doubt as to the Company’s
ability to continue as a going concern in the one year period after
the date of the issuance of these interim financial statements. For
this interim financial statement, the evaluation was updated. Given
the speed and frequency of continuously evolving developments with
respect to this pandemic and the uncertainties this may bring for
the Company and the demand for its products, it is difficult to
forecast the level of trading activity and hence cash flow in the
next twelve months. Developing a reliable estimate of the potential
impact on the results of operations and cash flow at this time is
difficult as markets and industries react to the pandemic and the
measures implemented in response to it, but our downside scenario
analysis supports an expectation that the Company will have cash
headroom to continue to operate throughout the next twelve
months.
Additionally, the indenture governing the senior
unsecured notes includes provisions which, in the event of a change
of control, would require the Company to offer to redeem the
outstanding senior unsecured notes at a cash purchase price equal
to 101% of the principal amount of the senior unsecured notes, plus
any accrued and unpaid interest. Based on the provisions cited
above, a change of control as defined in the indenture is unlikely
to occur, but the matter it is not within the Company’s control. If
a change of control were to occur, the Company may not have
sufficient financial resources available to satisfy all of its
obligations. Management is pursuing additional sources of financing
to increase liquidity to fund operations.
Subsequent events
On October 2, 2020, the Company signed a
factoring agreement, replacing the prior accounts receivables
securitization program. At closing, there was cash release of $19.7
million from restricted cash relating to a special purpose vehicle
under prior securitization program.
On November 1, 2020, the Company announced the
appointment of Thomas Wiesner as Chief Legal Officer. Subsequently,
Mr. Wiesner was also appointed as the Secretary to the Board of
Directors.
On November 16, 2020, the Tribunal Superior de
Justicia of Galicia dismissed FerroAtlántica’s claim of petition to
separate the metallurgical plants of Cee and Dumbria from the
related hydroelectric power plants. According to applicable law,
this judgment can be appealed before the Spanish Supreme Court.
Discussion of Third
Quarter 2020
Results
The Company has concluded that there are
indications for potential impairment of goodwill property, plant
and equipment and deferred tax assets. During the third quarter,
the Company registered an impairment relating to the Niagara Falls
facility as there are no plans to restart production. The Company
is conducting, the rest of its impairment analysis and as such
further material impairment relating to goodwill and/or the
remaining property, plant and equipment and deferred tax assets
could be identified and recorded subsequently. The financial
results presented for the third quarter and year to date as of
September 30, 2020 are unaudited and may be subsequently adjusted
for items including impairment of goodwill and/or property, plant
and equipment.
Sales
Sales for Q3 2020 were $262.7 million, an increase
of 5.1% compared to $250.0 million in Q2 2020. For Q3 2020, total
shipments were up 3.5% and the average selling price was down 0.1%
compared with Q2 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Nine Months Ended |
|
Nine Months Ended |
|
|
|
|
September 30, 2020 |
|
June 30, 2020 |
|
Change |
|
September 30, 2019 |
|
Change |
|
September 30, 2020 |
|
September 30, 2019 |
|
Change |
Shipments in metric
tons: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
|
51,215 |
|
|
47,884 |
|
7.0 |
% |
|
|
60,225 |
|
-15.0 |
% |
|
|
152,420 |
|
|
176,578 |
|
-13.7 |
% |
Silicon-based Alloys |
|
|
42,449 |
|
|
39,479 |
|
7.5 |
% |
|
|
69,879 |
|
-39.3 |
% |
|
|
142,860 |
|
|
230,944 |
|
-38.1 |
% |
Manganese-based Alloys |
|
|
53,980 |
|
|
55,290 |
|
-2.4 |
% |
|
|
93,996 |
|
-42.6 |
% |
|
|
182,995 |
|
|
297,221 |
|
-38.4 |
% |
Total shipments* |
|
|
147,644 |
|
|
142,653 |
|
3.5 |
% |
|
|
224,100 |
|
-34.1 |
% |
|
|
478,275 |
|
|
704,743 |
|
-32.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/MT): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
2,248 |
|
$ |
2,215 |
|
1.5 |
% |
|
$ |
2,175 |
|
3.3 |
% |
|
$ |
2,225 |
|
$ |
2,284 |
|
-2.6 |
% |
Silicon-based Alloys |
|
$ |
1,534 |
|
$ |
1,537 |
|
-0.2 |
% |
|
$ |
1,490 |
|
3.0 |
% |
|
$ |
1,510 |
|
$ |
1,582 |
|
-4.6 |
% |
Manganese-based Alloys |
|
$ |
1,009 |
|
$ |
1,088 |
|
-7.2 |
% |
|
$ |
1,140 |
|
-11.5 |
% |
|
$ |
1,019 |
|
$ |
1,167 |
|
-12.7 |
% |
Total* |
|
$ |
1,590 |
|
$ |
1,591 |
|
-0.1 |
% |
|
$ |
1,527 |
|
4.1 |
% |
|
$ |
1,550 |
|
$ |
1,583 |
|
-2.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/lb.): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
$ |
1.02 |
|
$ |
1.00 |
|
1.5 |
% |
|
$ |
0.99 |
|
3.3 |
% |
|
$ |
1.01 |
|
$ |
1.04 |
|
-2.6 |
% |
Silicon-based Alloys |
|
$ |
0.70 |
|
$ |
0.70 |
|
-0.2 |
% |
|
$ |
0.68 |
|
3.0 |
% |
|
$ |
0.68 |
|
$ |
0.72 |
|
-4.6 |
% |
Manganese-based Alloys |
|
$ |
0.46 |
|
$ |
0.49 |
|
-7.2 |
% |
|
$ |
0.52 |
|
-11.5 |
% |
|
$ |
0.46 |
|
$ |
0.53 |
|
-12.7 |
% |
Total* |
|
$ |
0.72 |
|
$ |
0.72 |
|
0.0 |
% |
|
$ |
0.69 |
|
4.1 |
% |
|
$ |
0.70 |
|
$ |
0.72 |
|
-2.1 |
% |
* Excludes by-products and other
Sales Prices & Volumes
By Product
During Q3 2020, total product average selling
prices decreased by 0.1% versus Q2 2020. Q3 average selling prices
of silicon metal increased 1.5%, silicon-based alloys prices
decreased 0.2%, and manganese-based alloys prices decreased
7.2%.
Sales volumes in Q3 declined by 3.5% versus the
prior quarter. Q3 sales volumes of silicon metal increased 7.0%,
silicon-based alloys increased 7.5%, and manganese-based alloys
decreased 2.4% versus Q2 2020.
Cost of Sales
Cost of sales was $166.2 million in Q3 2020, an
increase from $153.3 million in the prior quarter. Cost of sales as
a percentage of sales increased to 63.3% in Q3 2020 versus 61.3%
for Q2 2020, the increase is mainly due to higher sales volume,
lower sales prices, higher energy prices in Europe, lower fixed
cost absorption due to decreased production levels and the negative
impact of a planned plant shutdown in Spain.
Other Operating Expenses
Other operating expenses amounted to $26.9
million in Q3 2020, a decrease from $36.0 million in the prior
quarter. This decrease is primarily attributable to a reduction in
consultant fees and removal of the financial liabilities registered
in Photosil by $5 million.
Net Loss Attributable to the
Parent
In Q3 2020, net loss attributable to the Parent
was $47.3 million, or $(0.28) per diluted share, compared to a net
loss attributable to the Parent of $12.1 million, or $(0.07) per
diluted share in Q2 2020.
Adjusted EBITDA
In Q3 2020, adjusted EBITDA was $22.2 million,
or 8.5% of sales, compared to adjusted EBITDA of $22.4 million, or
9.0% of sales in Q2 2020, primarily due to price stability and
higher costs incurred in Q3 2020.
Conference Call
Ferroglobe management will review the third
quarter during a conference call at 9:00 a.m. Eastern Time on
November 24, 2020.
The dial-in number for participants in the
United States is 8772935491 (conference ID 9939707).
International callers should dial +1 9144958526 (conference ID
9939707). 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/itnuz76f
About Ferroglobe
Ferroglobe is one of the world’s leading
suppliers of silicon metal, silicon-based and manganese-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”, “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 MehtaEVP – Investor
Relations Email: investor.relations@ferroglobe.com
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Income Statement(in thousands of U.S.
dollars, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
Sales |
|
$ |
262,673 |
|
|
$ |
250,004 |
|
|
$ |
381,745 |
|
|
$ |
823,899 |
|
|
$ |
1,238,615 |
|
Cost of sales |
|
|
(166,231 |
) |
|
|
(153,291 |
) |
|
|
(277,692 |
) |
|
|
(562,882 |
) |
|
|
(899,492 |
) |
Other operating income |
|
|
7,598 |
|
|
|
10,160 |
|
|
|
13,215 |
|
|
|
25,526 |
|
|
|
41,766 |
|
Staff costs |
|
|
(56,329 |
) |
|
|
(48,912 |
) |
|
|
(72,536 |
) |
|
|
(160,338 |
) |
|
|
(221,651 |
) |
Other operating expense |
|
|
(26,896 |
) |
|
|
(35,953 |
) |
|
|
(50,060 |
) |
|
|
(102,915 |
) |
|
|
(166,901 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
(26,524 |
) |
|
|
(27,459 |
) |
|
|
(29,591 |
) |
|
|
(82,651 |
) |
|
|
(90,165 |
) |
Impairment losses |
|
|
(34,269 |
) |
|
|
— |
|
|
|
(174,018 |
) |
|
|
(34,269 |
) |
|
|
(175,353 |
) |
Other gain (loss) |
|
|
1,212 |
|
|
|
85 |
|
|
|
(3,774 |
) |
|
|
625 |
|
|
|
(3,896 |
) |
Operating (loss)
profit |
|
|
(38,766 |
) |
|
|
(5,365 |
) |
|
|
(212,711 |
) |
|
|
(93,005 |
) |
|
|
(277,077 |
) |
Net finance expense |
|
|
(13,985 |
) |
|
|
(16,693 |
) |
|
|
(16,491 |
) |
|
|
(47,162 |
) |
|
|
(45,361 |
) |
Financial derivatives (loss)
gain |
|
|
— |
|
|
|
— |
|
|
|
2,913 |
|
|
|
3,168 |
|
|
|
3,882 |
|
Exchange differences |
|
|
13,157 |
|
|
|
2,633 |
|
|
|
(5,083 |
) |
|
|
18,226 |
|
|
|
(1,482 |
) |
(Loss) profit before
tax |
|
|
(39,594 |
) |
|
|
(19,425 |
) |
|
|
(231,372 |
) |
|
|
(118,773 |
) |
|
|
(320,038 |
) |
Income tax benefit
(expense) |
|
|
(1,841 |
) |
|
|
5,390 |
|
|
|
14,322 |
|
|
|
14,245 |
|
|
|
27,422 |
|
(Loss) profit for the
period from continuing operations |
|
|
(41,435 |
) |
|
|
(14,035 |
) |
|
|
(217,050 |
) |
|
|
(104,528 |
) |
|
|
(292,616 |
) |
Profit for the period from
discontinued operations |
|
|
(5,399 |
) |
|
|
— |
|
|
|
76,911 |
|
|
|
(5,399 |
) |
|
|
80,265 |
|
(Loss) profit for the
period |
|
|
(46,834 |
) |
|
|
(14,035 |
) |
|
|
(140,139 |
) |
|
|
(109,927 |
) |
|
|
(212,351 |
) |
Loss (profit) attributable to
non-controlling interest |
|
|
(450 |
) |
|
|
1,928 |
|
|
|
(385 |
) |
|
|
2,638 |
|
|
|
4,174 |
|
(Loss) profit
attributable to the parent |
|
$ |
(47,284 |
) |
|
$ |
(12,107 |
) |
|
$ |
(140,524 |
) |
|
$ |
(107,289 |
) |
|
$ |
(208,177 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
(12,242 |
) |
|
$ |
22,093 |
|
|
$ |
(183,120 |
) |
|
$ |
(10,354 |
) |
|
$ |
(186,912 |
) |
Adjusted EBITDA |
|
$ |
22,231 |
|
|
$ |
22,413 |
|
|
$ |
(7,210 |
) |
|
$ |
27,027 |
|
|
$ |
1,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
169,261 |
|
|
|
169,254 |
|
|
|
169,123 |
|
|
|
169,261 |
|
|
|
169,123 |
|
Diluted |
|
|
169,261 |
|
|
|
169,254 |
|
|
|
169,123 |
|
|
|
169,261 |
|
|
|
169,123 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.28 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.23 |
) |
Diluted |
|
$ |
(0.28 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.23 |
) |
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Financial Position(in thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
June 30, |
|
December 31, |
|
|
2020 |
|
2020 |
|
2019 |
ASSETS |
Non-current
assets |
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
$ |
|
29,702 |
|
$ |
29,702 |
|
$ |
29,702 |
Other intangible assets |
|
|
|
18,876 |
|
|
45,655 |
|
|
51,267 |
Property, plant and equipment |
|
|
|
640,211 |
|
|
677,081 |
|
|
740,906 |
Other non-current financial assets |
|
|
|
6,227 |
|
|
6,404 |
|
|
2,618 |
Deferred tax assets |
|
|
|
50,939 |
|
|
43,102 |
|
|
59,551 |
Non-current receivables from related parties |
|
|
|
2,343 |
|
|
2,240 |
|
|
2,247 |
Other non-current assets |
|
|
|
4,960 |
|
|
4,228 |
|
|
1,597 |
Non-current restricted cash and cash equivalents |
|
|
|
28,551 |
|
|
28,366 |
|
|
28,323 |
Total non-current
assets |
|
|
|
781,809 |
|
|
836,778 |
|
|
916,211 |
Current
assets |
|
|
|
|
|
|
|
|
|
|
Inventories |
|
|
|
311,269 |
|
|
305,438 |
|
|
354,121 |
Trade and other receivables |
|
|
|
179,432 |
|
|
172,036 |
|
|
309,064 |
Current receivables from related parties |
|
|
|
3,055 |
|
|
2,955 |
|
|
2,955 |
Current income tax assets |
|
|
|
11,264 |
|
|
12,151 |
|
|
27,930 |
Other current financial assets |
|
|
|
2,360 |
|
|
4,791 |
|
|
5,544 |
Other current assets |
|
|
|
18,199 |
|
|
22,602 |
|
|
23,676 |
Cash and cash equivalents * |
|
|
|
118,874 |
|
|
124,876 |
|
|
94,852 |
Total current
assets |
|
|
|
644,453 |
|
|
644,849 |
|
|
818,142 |
Total
assets |
|
$ |
|
1,426,262 |
|
$ |
1,481,627 |
|
$ |
1,734,353 |
|
|
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
|
$ |
|
483,487 |
|
$ |
519,974 |
|
$ |
602,297 |
Non-current
liabilities |
|
|
|
|
|
|
|
|
|
|
Deferred income |
|
|
|
7,454 |
|
|
4,983 |
|
|
1,253 |
Provisions |
|
|
|
84,779 |
|
|
81,659 |
|
|
84,852 |
Bank borrowings |
|
|
|
31,958 |
|
|
92,552 |
|
|
144,388 |
Lease liabilities |
|
|
|
12,655 |
|
|
13,512 |
|
|
16,972 |
Debt instruments |
|
|
|
345,941 |
|
|
345,284 |
|
|
344,014 |
Other financial liabilities |
|
|
|
32,554 |
|
|
33,316 |
|
|
43,157 |
Other non-current liabilities |
|
|
|
16,678 |
|
|
25,785 |
|
|
25,906 |
Deferred tax liabilities |
|
|
|
47,633 |
|
|
40,162 |
|
|
74,057 |
Total non-current
liabilities |
|
|
|
579,652 |
|
|
637,252 |
|
|
734,599 |
Current
liabilities |
|
|
|
|
|
|
|
|
|
|
Provisions |
|
|
|
38,121 |
|
|
37,367 |
|
|
46,091 |
Bank borrowings |
|
|
|
59,318 |
|
|
245 |
|
|
14,611 |
Lease liabilities |
|
|
|
7,960 |
|
|
8,592 |
|
|
8,900 |
Debt instruments |
|
|
|
2,697 |
|
|
10,994 |
|
|
10,937 |
Other financial liabilities |
|
|
|
28,016 |
|
|
26,318 |
|
|
23,382 |
Payables to related parties |
|
|
|
4,162 |
|
|
2,056 |
|
|
4,830 |
Trade and other payables |
|
|
|
136,371 |
|
|
156,053 |
|
|
189,229 |
Current income tax liabilities |
|
|
|
140 |
|
|
2,146 |
|
|
3,048 |
Other current liabilities |
|
|
|
86,338 |
|
|
80,630 |
|
|
96,429 |
Liabilities associated with assets classified as held for sale |
|
|
|
— |
|
|
— |
|
|
— |
Total current
liabilities |
|
|
|
363,123 |
|
|
324,401 |
|
|
397,457 |
Total equity and
liabilities |
|
$ |
|
1,426,262 |
|
$ |
1,481,627 |
|
$ |
1,734,353 |
*Cash and cash equivalents at September 30, 2020
includes the cash balance of the group’s European A/R
securitization program of $41,016 ($38,961 and $38,778 at June 30,
2020 and December 31, 2019, respectively)
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Cash Flows(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended * |
|
|
Nine Months Ended |
|
|
Nine Months Ended * |
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
|
September 30, 2020 |
|
|
September 30, 2019 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit for the
period |
|
$ |
(46,834 |
) |
|
$ |
(14,035 |
) |
|
$ |
(140,139 |
) |
|
|
$ |
(109,926 |
) |
|
|
$ |
(212,351 |
) |
Adjustments to
reconcile net (loss) profit to net cash used by
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
Income tax (benefit) expense |
|
|
1,841 |
|
|
|
(5,390 |
) |
|
|
(14,489 |
) |
|
|
|
(14,245 |
) |
|
|
|
(26,408 |
) |
Depreciation and amortization charges, operating allowances and
write-downs |
|
|
26,524 |
|
|
|
27,459 |
|
|
|
29,591 |
|
|
|
|
82,651 |
|
|
|
|
92,995 |
|
Net finance expense |
|
|
13,985 |
|
|
|
16,693 |
|
|
|
20,893 |
|
|
|
|
47,162 |
|
|
|
|
51,794 |
|
Financial derivatives loss (gain) |
|
|
— |
|
|
|
— |
|
|
|
(2,913 |
) |
|
|
|
(3,168 |
) |
|
|
|
(3,882 |
) |
Exchange differences |
|
|
(13,157 |
) |
|
|
(2,633 |
) |
|
|
5,083 |
|
|
|
|
(18,226 |
) |
|
|
|
1,482 |
|
Impairment losses |
|
|
34,269 |
|
|
|
— |
|
|
|
174,018 |
|
|
|
|
34,269 |
|
|
|
|
175,353 |
|
Net loss (gain) due to changes in the value of asset |
|
|
— |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
Bargain purchase gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Gain on disposal of discontinued operation |
|
|
5,399 |
|
|
|
— |
|
|
|
(80,729 |
) |
|
|
|
5,399 |
|
|
|
|
(80,729 |
) |
Share-based compensation |
|
|
323 |
|
|
|
704 |
|
|
|
1,015 |
|
|
|
|
1,749 |
|
|
|
|
3,280 |
|
Other adjustments |
|
|
(8,774 |
) |
|
|
(85 |
) |
|
|
3,774 |
|
|
|
|
(8,188 |
) |
|
|
|
3,896 |
|
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
(Increase) decrease in inventories |
|
|
3,725 |
|
|
|
(12,471 |
) |
|
|
5,953 |
|
|
|
|
42,831 |
|
|
|
|
(40,962 |
) |
(Increase) decrease in trade receivables |
|
|
(4,731 |
) |
|
|
45,537 |
|
|
|
5,568 |
|
|
|
|
124,638 |
|
|
|
|
1,623 |
|
Increase (decrease) in trade payables |
|
|
(20,359 |
) |
|
|
(4,875 |
) |
|
|
(10,693 |
) |
|
|
|
(50,738 |
) |
|
|
|
(12,035 |
) |
Other |
|
|
31,410 |
|
|
|
(16,287 |
) |
|
|
(59,689 |
) |
|
|
|
3,525 |
|
|
|
|
(21,430 |
) |
Income taxes paid |
|
|
(633 |
) |
|
|
3,522 |
|
|
|
(846 |
) |
|
|
|
13,008 |
|
|
|
|
(3,066 |
) |
Net cash provided
(used) by operating activities |
|
|
22,988 |
|
|
|
38,139 |
|
|
|
(63,603 |
) |
|
|
|
150,741 |
|
|
|
|
(70,440 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
|
278 |
|
|
|
85 |
|
|
|
626 |
|
|
|
|
617 |
|
|
|
|
1,502 |
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
Acquisition of subsidiary |
|
|
— |
|
|
|
— |
|
|
|
9,088 |
|
|
|
|
— |
|
|
|
|
9,088 |
|
Other intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(184 |
) |
Property, plant and equipment |
|
|
(8,734 |
) |
|
|
(5,056 |
) |
|
|
(6,269 |
) |
|
|
|
(18,396 |
) |
|
|
|
(26,845 |
) |
Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(627 |
) |
Disposals: |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
Disposal of subsidiaries |
|
|
— |
|
|
|
— |
|
|
|
171,058 |
|
|
|
|
— |
|
|
|
|
171,058 |
|
Other non-current assets |
|
|
46 |
|
|
|
— |
|
|
|
— |
|
|
|
|
46 |
|
|
|
|
— |
|
Other |
|
|
— |
|
|
|
— |
|
|
|
19 |
|
|
|
|
— |
|
|
|
|
3,416 |
|
Net cash (used)
provided by investing activities |
|
|
(8,410 |
) |
|
|
(4,971 |
) |
|
|
174,522 |
|
|
|
|
(17,733 |
) |
|
|
|
157,408 |
|
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Payment for debt issuance
costs |
|
|
(608 |
) |
|
|
(279 |
) |
|
|
(2,093 |
) |
|
|
|
(2,463 |
) |
|
|
|
(2,798 |
) |
Repayment of hydro leases |
|
|
— |
|
|
|
— |
|
|
|
(55,352 |
) |
|
|
|
— |
|
|
|
|
(55,352 |
) |
Repayment of other financial
liabilities |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
|
Borrowings |
|
|
8,022 |
|
|
|
— |
|
|
|
— |
|
|
|
|
8,022 |
|
|
|
|
71,499 |
|
Payments |
|
|
(7,800 |
) |
|
|
(20,680 |
) |
|
|
(21,038 |
) |
|
|
|
(73,360 |
) |
|
|
|
(60,101 |
) |
Proceeds from stock option
exercises |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Amounts paid due to
leases |
|
|
(2,463 |
) |
|
|
(2,418 |
) |
|
|
— |
|
|
|
|
(7,342 |
) |
|
|
|
(22,268 |
) |
Other amounts received/(paid)
due to financing activities |
|
|
— |
|
|
|
— |
|
|
|
(9,324 |
) |
|
|
|
3,608 |
|
|
|
|
— |
|
Payments to acquire or redeem
own shares |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Interest paid |
|
|
(17,130 |
) |
|
|
(1,131 |
) |
|
|
(18,713 |
) |
|
|
|
(37,085 |
) |
|
|
|
(40,562 |
) |
Net cash (used)
provided by financing activities |
|
|
(19,979 |
) |
|
|
(24,508 |
) |
|
|
(106,520 |
) |
|
|
|
(108,620 |
) |
|
|
|
(109,582 |
) |
Total net cash flows
for the period |
|
|
(5,401 |
) |
|
|
8,660 |
|
|
|
4,399 |
|
|
|
|
24,388 |
|
|
|
|
(22,614 |
) |
Beginning balance of cash and cash equivalents |
|
|
153,242 |
|
|
|
144,489 |
|
|
|
188,045 |
|
|
|
|
123,175 |
|
|
|
|
216,647 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
|
(416 |
) |
|
|
93 |
|
|
|
(4,401 |
) |
|
|
|
(138 |
) |
|
|
|
(5,990 |
) |
Ending balance of cash
and cash equivalents |
|
$ |
147,425 |
|
|
$ |
153,242 |
|
|
$ |
188,043 |
|
|
|
$ |
147,425 |
|
|
|
$ |
188,043 |
|
Cash from continuing
operations |
|
|
118,874 |
|
|
|
124,876 |
|
|
|
177,154 |
|
|
|
|
118,874 |
|
|
|
|
177,154 |
|
Non-current restricted cash
and cash equivalents |
|
|
28,551 |
|
|
|
28,366 |
|
|
|
10,889 |
|
|
|
|
28,551 |
|
|
|
|
10,889 |
|
Cash and restricted
cash in the statement of financial position |
|
$ |
147,425 |
|
|
$ |
153,242 |
|
|
$ |
188,043 |
|
|
|
$ |
147,425 |
|
|
|
$ |
188,043 |
|
* 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 |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
(Loss) profit
attributable to the parent |
|
$ |
(47,284 |
) |
|
$ |
(12,107 |
) |
|
$ |
(140,524 |
) |
|
$ |
(107,289 |
) |
|
$ |
(208,177 |
) |
(Loss) profit for the period
from discontinued operations |
|
|
5,399 |
|
|
|
— |
|
|
|
(76,911 |
) |
|
|
5,399 |
|
|
|
(80,265 |
) |
Loss (profit) attributable to
non-controlling interest |
|
|
450 |
|
|
|
(1,928 |
) |
|
|
385 |
|
|
|
(2,638 |
) |
|
|
(4,174 |
) |
Income tax (benefit)
expense |
|
|
1,841 |
|
|
|
(5,390 |
) |
|
|
(14,322 |
) |
|
|
(14,245 |
) |
|
|
(27,422 |
) |
Net finance expense |
|
|
13,985 |
|
|
|
16,693 |
|
|
|
16,491 |
|
|
|
47,162 |
|
|
|
45,361 |
|
Financial derivatives loss
(gain) |
|
|
— |
|
|
|
— |
|
|
|
(2,913 |
) |
|
|
(3,168 |
) |
|
|
(3,882 |
) |
Exchange differences |
|
|
(13,157 |
) |
|
|
(2,633 |
) |
|
|
5,083 |
|
|
|
(18,226 |
) |
|
|
1,482 |
|
Depreciation and amortization
charges, operating allowances and write-downs |
|
|
26,524 |
|
|
|
27,459 |
|
|
|
29,591 |
|
|
|
82,651 |
|
|
|
90,165 |
|
EBITDA |
|
|
(12,242 |
) |
|
|
22,093 |
|
|
|
(183,120 |
) |
|
|
(10,354 |
) |
|
|
(186,912 |
) |
Impairment |
|
|
34,269 |
|
|
|
— |
|
|
|
174,008 |
|
|
|
34,269 |
|
|
|
174,008 |
|
Revaluation of biological
assets |
|
|
— |
|
|
|
— |
|
|
|
1,080 |
|
|
|
— |
|
|
|
1,080 |
|
Contract termination
costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9,260 |
|
Restructuring and termination
costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,894 |
|
Energy: France |
|
|
— |
|
|
|
(55 |
) |
|
|
— |
|
|
|
70 |
|
|
|
— |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South
Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
155 |
|
|
|
— |
|
Other Idling Costs |
|
|
204 |
|
|
|
375 |
|
|
|
— |
|
|
|
2,887 |
|
|
|
— |
|
(Loss)profit on disposal of
non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
822 |
|
|
|
— |
|
|
|
822 |
|
Adjusted
EBITDA |
|
$ |
22,231 |
|
|
$ |
22,413 |
|
|
$ |
(7,210 |
) |
|
$ |
27,027 |
|
|
$ |
1,152 |
|
Adjusted profit
attributable to Ferroglobe
($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
(Loss) profit
attributable to the parent |
|
$ |
(47,284 |
) |
|
$ |
(12,107 |
) |
|
$ |
(140,524 |
) |
|
$ |
(107,289 |
) |
|
$ |
(208,177 |
) |
Tax rate adjustment |
|
|
14,511 |
|
|
|
826 |
|
|
|
59,717 |
|
|
|
23,761 |
|
|
|
74,990 |
|
Impairment |
|
|
23,303 |
|
|
|
— |
|
|
|
118,325 |
|
|
|
23,303 |
|
|
|
118,325 |
|
Revaluation of biological assets |
|
|
— |
|
|
|
— |
|
|
|
734 |
|
|
|
— |
|
|
|
734 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,297 |
|
Restructuring and termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,968 |
|
Energy: France |
|
|
— |
|
|
|
(37 |
) |
|
|
— |
|
|
|
48 |
|
|
|
— |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
105 |
|
|
|
— |
|
Other Idling Costs |
|
|
139 |
|
|
|
255 |
|
|
|
— |
|
|
|
1,963 |
|
|
|
— |
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
(54,337 |
) |
|
|
— |
|
|
|
(54,337 |
) |
Adjusted (loss) profit
attributable to the parent |
|
$ |
(9,332 |
) |
|
$ |
(11,064 |
) |
|
$ |
(16,084 |
) |
|
$ |
(58,108 |
) |
|
$ |
(60,200 |
) |
Adjusted diluted profit
per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Nine Months Ended |
|
Nine Months Ended |
|
|
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
|
September 30, 2020 |
|
September 30, 2019 |
Diluted (loss) profit
per ordinary share |
|
$ |
(0.28 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.83 |
) |
|
$ |
(0.63 |
) |
|
$ |
(1.23 |
) |
Tax rate adjustment |
|
|
— |
|
|
|
0.00 |
|
|
|
0.35 |
|
|
|
0.14 |
|
|
|
0.44 |
|
Impairment |
|
|
0.14 |
|
|
|
— |
|
|
|
0.70 |
|
|
|
0.14 |
|
|
|
0.70 |
|
Revaluation of biological assets |
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.00 |
|
Contract termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.04 |
|
Restructuring and termination costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Energy: France |
|
|
— |
|
|
|
(0.00 |
) |
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Energy: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Staff Costs: South Africa |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Other Idling Costs |
|
|
0.00 |
|
|
|
0.00 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
(Loss) profit on disposal of non-core businesses |
|
|
— |
|
|
|
— |
|
|
|
(0.32 |
) |
|
|
— |
|
|
|
(0.32 |
) |
Adjusted diluted
(loss) profit per ordinary share |
|
$ |
(0.14 |
) |
|
$ |
(0.07 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.36 |
) |
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly
authorized.
|
|
|
|
Date: November
23, 2020 |
|
FERROGLOBE PLC |
|
|
|
|
by |
/s/
Marco Levi |
|
|
Name: Marco Levi |
|
|
Title: Chief Executive Officer
(Principal Executive Officer) |
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From Apr 2024 to May 2024
Ferroglobe (NASDAQ:GSM)
Historical Stock Chart
From May 2023 to May 2024