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 first quarter 2021.
Q1 2021 Earnings Highlights
In Q1 2021, Ferroglobe posted a net loss of
($68.5) million, or ($0.40) per share on a fully diluted basis. On
an adjusted basis, the Q1 2021 net loss was ($18.2) million, or
($0.24) per share on a fully diluted basis.
Q1 2021 reported EBITDA was ($18.9) million, up
from ($65.8) million in the prior quarter. On an adjusted basis, Q1
2021 EBITDA was $22.1 million, up from Q4 2020 adjusted EBITDA of
$5.5 million. The Company reported an adjusted EBITDA margin of
6.1% for Q1 2021, compared to 1.7% for Q4 2020.
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
$,000
(unaudited) |
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
|
|
|
|
|
|
|
|
|
|
|
|
Sales |
$ |
361,390 |
|
|
$ |
320,535 |
|
|
$ |
311,223 |
|
|
$ |
1,144,434 |
|
Net (loss) profit |
$ |
(68,517 |
) |
|
$ |
(139,831 |
) |
|
$ |
(49,057 |
) |
|
$ |
(249,758 |
) |
Diluted EPS |
$ |
(0.40 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.46 |
) |
Adjusted net (loss) income
attributable to the parent |
$ |
(18,172 |
) |
|
$ |
(21,222 |
) |
|
$ |
(37,714 |
) |
|
$ |
(79,329 |
) |
Adjusted diluted EPS |
$ |
(0.24 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.22 |
) |
|
$ |
(1.03 |
) |
Adjusted EBITDA |
$ |
22,069 |
|
|
$ |
5,483 |
|
|
$ |
(17,617 |
) |
|
$ |
32,510 |
|
Adjusted EBITDA margin |
|
6.1 |
% |
|
|
1.7 |
% |
|
|
(5.7 |
)% |
|
|
2.8 |
% |
Marco Levi, Ferroglobe’s Chief Executive
Officer, commented, “The first quarter results reflect an
inflection point for our business which is underpinned by solid
supply-demand fundamentals across all products in our portfolio.
The overall pace of recovery is certainly stronger than what we
were expecting and there is now reason to believe these robust
conditions will continue for the remainder of the year.” Dr. Levi
added, “Ferroglobe has been making progress on multiple fronts.
Given the operational and financial improvements we have been
pursuing as part of the strategic plan, the Company is well
positioned to capitalize on this opportunity and accelerate the
path to profitability.”
Cash Flow and Balance Sheet
Cash generated from operations during Q1 2020
was $18.3 million and free cash flow was $9.1 million.
Working capital decreased by $5.9 million, from
$339.6 million as of March 31, 2021 to $333.7 million at December
31, 2020. The decrease is mainly driven by continued improvement in
inventory, despite the increase in overall activity during the
quarter.
Gross debt was $419 million as of March 31,
2021, down from $455 million as of December 31, 2020, primarily as
a result of a repayment of our prior Asset Based Loan ($31.3), as
part of the overall refinancing, as well as the senior unsecured
notes coupon payment ($16.4).
Beatriz García-Cos, Ferroglobe’s Chief Financial
Officer, commented, “This quarter’s results reinforce the leverage
to pricing of our business platform. With an improved top-line,
driven primarily by higher prices, coupled with our continued
effort on driving down costs, we did see some recovery in our
margin, although we are far from the full potential of this
Company.” Ms. García-Cos added, “Funding for the initial tranche of
debt under the new comprehensive refinancing structure comes at an
opportune time. The incremental cash provides the ability to fund
the execution of the transformation plan, as well as invest in the
business in order to capitalize on this strong market
backdrop.”
As of March, 28, 2021, the Company announced the
agreement in principle on terms of capital raise, extension of bond
maturity and entry into a Lock-Up agreement. The transaction
involves three, inter-conditional elements: the raising of $40
million of new equity, $60 million of new senior secured notes and
the extension of maturity and amendment of the terms of the
existing 2022 Senior Notes. The Lock-Up Agreement binds its parties
to support and implement the aforementioned transaction, subject to
its terms and conditions.
COVID-19COVID-19 has been and
continues to be a complex and evolving situation, with governments,
public institutions and other organizations imposing or
recommending, and businesses and individuals implementing, at
various times and to varying degrees, restrictions on various
activities or other actions to combat its spread, such as
restrictions and bans on travel or transportation; limitations on
the size of in-person gatherings, restrictions on freight
transportations, closures of, or occupancy or other operating
limitations on work facilities, and quarantines and lock-downs.
As a result of this pandemic and the strict
confinement and other public health measures taken around the
world, the demand of our products in the second and third quarters
of 2020 was reduced significantly compared with the first and
fourth quarters of the year. During the fourth quarter of 2020,
demand level for our products increased to levels similar to those
prior to the outbreak. In first quarter of 2021, demand for our
products has increased even further than in the fourth quarter of
2020. However, COVID-19 has negatively impacted, and will in the
future negatively impact to an extent we are unable to predict, our
revenues.
The main source of finance for the Company are
the Senior Notes (the “Notes”) amounting $350,000 thousand due
March 1, 2022. The Indenture governing the Notes includes
provisions which, in the event of a change of control, would
require the Company to offer to redeem the outstanding Notes at a
cash purchase price equal to 101% of the principal amount of the
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.
Beginning in 2020, we engaged in discussions
with the Ad Hoc Group Noteholders to put forward a plan to
refinance the Notes and restructure our balance sheet. On March 27,
2021, Ferroglobe entered into a Lock-Up Agreement with members of
an “Ad Hoc-Group”, being existing note holders representing in
aggregate approximately 60% of the Notes, to issue additional $60m
Notes and with Tyrus Capital (“Tyrus”) as backstop provider in
respect of a $40 million equity raise forming part of the
transaction. The principal elements of the restructuring, as set
forth below, are inter-conditional and must be completed by
September 28, 2021, unless extended by agreement.
Management acknowledges that the events and
conditions relating to the uncertainty over the completion of the
restructuring of the Notes, the potential repayment of the
outstanding balance of the Notes should a change of control occur,
and the difficulties in forecasting net cash flows in the current
economic conditions because of the Covid-19 pandemic, together in
aggregate give rise to a material uncertainty that may cast
substantial doubt on the ability of the Company to continue as a
going concern for a period of twelve months following the date our
consolidated financial statements are issued. Notwithstanding the
material uncertainty described above, management believes that the
Group has adequate resources and considers it likely that the
exchange of the Notes and additional capital will be completed,
that will allow the Group to continue in operational existence for
the foreseeable future. The consolidated financial statements do
not include any adjustments that might be necessary if the Company
is unable to continue as going concern.
Subsequent events
On April 21, 2021, the Company obtained the
agreement in principle of 95.92% (by value) of the noteholders to
restructure the Senior Notes and extend their maturity to December
2025. In light of this, the Company agreed an amendment to the
Lock-Up Agreement to allow it to proceed to implement the
transaction by way of an exchange offer instead of an English law
scheme of arrangement. Although over 96% of the
noteholders have now contractually agreed to support the
transaction, there can nonetheless be no assurance that the
proposed restructuring will be completed.
On April 30, 2021, Mr. José María Alapont
resigned from the Board of Directors. Subsequently, on May 13,
2021, Ferroglobe appointed four new board directors and appointed
Mr. Bruce Crockett as the Lead Independent Director.
On May 10, 2021, the Company filed a Form F-3
with the United States Securities and Exchange Commission to
register a total amount of $40 million in securities. It describes
the general terms of these securities and the general manner in
which these securities will be offered.
Finally, on May 12, 2021, the Company entered
into a Note Purchase Agreement with the members of the “Ad Hoc
Group” relating to the issuance of an initial $40 million of
aggregate $60 million new senior secured notes. The conditions
precedent to the Note Purchase Agreement have been satisfied and
the initial $40 million is in the process of being settled.
Discussion of First Quarter 2021 Results
The Company has concluded that there are
indications for potential impairment of goodwill, property, plant
and equipment. The financial results presented for the first
quarter are unaudited and may be subsequently materially
adjusted.
Sales
Sales for Q1 2021 were $361.4 million, an
increase of 12.8% compared to $320.5 million in Q4 2020. For Q1
2021, total shipments were up 2.4% and the average selling price
was up 9.3% compared with Q4 2020.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
|
|
Quarter Ended |
|
|
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
Change |
|
March 31, 2020 |
|
Change |
|
December 31, 2020 |
Shipments in metric
tons: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
|
61,275 |
|
|
54,912 |
|
11.6 |
% |
|
|
53,321 |
|
14.9 |
% |
|
|
207,332 |
Silicon-based Alloys |
|
61,604 |
|
|
57,351 |
|
7.4 |
% |
|
|
60,932 |
|
1.1 |
% |
|
|
200,212 |
Manganese-based Alloys |
|
72,609 |
|
|
78,611 |
|
(7.6 |
)% |
|
|
73,724 |
|
(1.5 |
)% |
|
|
261,605 |
Total shipments* |
|
195,488 |
|
|
190,874 |
|
2.4 |
% |
|
|
187,977 |
|
4.0 |
% |
|
|
669,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/MT): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
$ |
2,285 |
|
$ |
2,260 |
|
1.1 |
% |
|
$ |
2,212 |
|
3.3 |
% |
|
$ |
2,234 |
Silicon-based Alloys |
$ |
1,665 |
|
$ |
1,528 |
|
8.9 |
% |
|
$ |
1,474 |
|
12.9 |
% |
|
$ |
1,515 |
Manganese-based Alloys |
$ |
1,174 |
|
$ |
1,031 |
|
13.8 |
% |
|
$ |
973 |
|
20.6 |
% |
|
$ |
1,022 |
Total* |
$ |
1,677 |
|
$ |
1,534 |
|
9.3 |
% |
|
$ |
1,487 |
|
12.8 |
% |
|
$ |
1,545 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price
($/lb.): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Silicon Metal |
$ |
1.04 |
|
$ |
1.03 |
|
1.1 |
% |
|
$ |
1.00 |
|
3.3 |
% |
|
$ |
1.01 |
Silicon-based Alloys |
$ |
0.76 |
|
$ |
0.69 |
|
8.9 |
% |
|
$ |
0.67 |
|
12.9 |
% |
|
$ |
0.69 |
Manganese-based Alloys |
$ |
0.53 |
|
$ |
0.47 |
|
13.8 |
% |
|
$ |
0.44 |
|
20.6 |
% |
|
$ |
0.46 |
Total* |
$ |
0.76 |
|
$ |
0.70 |
|
9.3 |
% |
|
$ |
0.67 |
|
12.8 |
% |
|
$ |
0.70 |
___________________________
* Excludes by-products and other
Sales Prices & Volumes By
Product
During Q1 2021, total product average selling
prices increased by 9.3% versus Q4 2020. Q1 average selling prices
of silicon metal increased 1.1%, silicon-based alloys prices
increased 8.9%, and manganese-based alloys prices increased
13.8%.
Sales volumes in Q1 growth by 2.4% versus the
prior quarter. Q1 sales volumes of silicon metal increased 11.6%,
silicon-based alloys increased 7.4%, and manganese-based alloys
decreased 7.6% versus Q4 2020.
Cost of Sales
Cost of sales was $250.2 million in Q1 2021, a
decrease from $272.6 million in the prior quarter. Cost of sales as
a percentage of sales decreased to 69.2% in Q1 2021 versus 85.1%
for Q4 2020. This decrease is mainly due to improved production
costs driven by attractive energy rates, continued efficiency, and
higher fixed cost absorption.
Other Operating Expenses
Other operating expenses amounted to $36.8
million in Q1 2021, an increase from $29.1 million in the prior
quarter. Mainly consequence of a one-off input in Q4 2020 driven by
a reclassification to cost of sales to conform the group
presentation.
Net Loss Attributable to the
Parent
In Q1 2021, net loss attributable to the Parent
was $67.4 million, or ($0.40) per diluted share, compared to a net
loss attributable to the Parent of $139.1 million, or ($0.82) per
diluted share in Q4 2020.
Adjusted EBITDA
In Q1 2021, adjusted EBITDA was $22.1 million,
or 6.1% of sales, compared to adjusted EBITDA of $5.5 million, or
1.7% of sales in Q4 2020. The increase in the Q1 2021 Adjusted
EBITDA is primarily driven by increased realized pricing, improved
costs and the avoidance of one-off, non-recurring costs during the
quarter.
Conference Call
Ferroglobe management will review the first
quarter during a conference call at 9:00 a.m. Eastern Time on
May 18, 2021.
The dial-in number for participants in the
United States is + 1 877-293-5491 (conference ID: 6081005).
International callers should dial + 1 914-495-8526 (conference ID:
6081005). 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/v4m27q2m
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 MehtaExecutive Vice President – Investor
Relations Email: investor.relations@ferroglobe.com
MEDIA CONTACT:
Cristina Feliu RoigExecutive Director – Communications &
Public
AffairsEmail: corporate.comms@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 |
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
Sales |
$ |
361,390 |
|
|
$ |
320,535 |
|
|
$ |
311,223 |
|
|
$ |
1,144,434 |
|
Cost of sales |
|
(250,165 |
) |
|
|
(272,603 |
) |
|
|
(243,360 |
) |
|
|
(835,486 |
) |
Other operating income |
|
1,913 |
|
|
|
8,100 |
|
|
|
7,768 |
|
|
|
33,627 |
|
Staff costs |
|
(95,267 |
) |
|
|
(54,444 |
) |
|
|
(55,097 |
) |
|
|
(214,782 |
) |
Other operating expense |
|
(36,835 |
) |
|
|
(29,143 |
) |
|
|
(40,067 |
) |
|
|
(132,059 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
(25,285 |
) |
|
|
(25,538 |
) |
|
|
(28,668 |
) |
|
|
(108,189 |
) |
Impairment losses |
|
— |
|
|
|
(39,074 |
) |
|
|
— |
|
|
|
(73,344 |
) |
Other gain (loss) |
|
66 |
|
|
|
824 |
|
|
|
(671 |
) |
|
|
1,449 |
|
Operating (loss)
profit |
|
(44,183 |
) |
|
|
(91,343 |
) |
|
|
(48,872 |
) |
|
|
(184,350 |
) |
Net finance expense |
|
(15,864 |
) |
|
|
(19,630 |
) |
|
|
(16,484 |
) |
|
|
(66,791 |
) |
Financial derivatives (loss)
gain |
|
— |
|
|
|
— |
|
|
|
3,168 |
|
|
|
3,168 |
|
Exchange differences |
|
(9,314 |
) |
|
|
7,327 |
|
|
|
2,436 |
|
|
|
25,553 |
|
(Loss) profit before
tax |
|
(69,361 |
) |
|
|
(103,646 |
) |
|
|
(59,753 |
) |
|
|
(222,420 |
) |
Income tax benefit
(expense) |
|
844 |
|
|
|
(36,185 |
) |
|
|
10,696 |
|
|
|
(21,939 |
) |
(Loss) profit for the
period from continuing operations |
|
(68,517 |
) |
|
|
(139,831 |
) |
|
|
(49,057 |
) |
|
|
(244,359 |
) |
Profit for the period from
discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(5,399 |
) |
(Loss) profit for the
period |
|
(68,517 |
) |
|
|
(139,831 |
) |
|
|
(49,057 |
) |
|
|
(249,758 |
) |
Loss (profit) attributable to
non-controlling interest |
|
1,135 |
|
|
|
781 |
|
|
|
1,159 |
|
|
|
3,419 |
|
(Loss) profit
attributable to the parent |
$ |
(67,382 |
) |
|
$ |
(139,050 |
) |
|
$ |
(47,898 |
) |
|
$ |
(246,339 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
$ |
(18,898 |
) |
|
$ |
(65,805 |
) |
|
$ |
(20,204 |
) |
|
$ |
(76,161 |
) |
Adjusted EBITDA |
$ |
22,069 |
|
|
$ |
5,483 |
|
|
$ |
(17,617 |
) |
|
$ |
32,510 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
169,291 |
|
|
|
169,291 |
|
|
|
169,249 |
|
|
|
169,269 |
|
Diluted |
|
169,291 |
|
|
|
169,291 |
|
|
|
169,249 |
|
|
|
169,269 |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit per
ordinary share |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
(0.40 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.46 |
) |
Diluted |
$ |
(0.40 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.46 |
) |
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Financial Position(in thousands of
U.S. dollars)
|
|
|
|
|
|
|
|
|
|
March 31, |
|
December 31, |
|
March 31, |
|
2021 |
|
2020 |
|
2020 |
ASSETS |
Non-current
assets |
|
|
|
|
|
|
|
|
Goodwill |
$ |
29,702 |
|
$ |
29,702 |
|
$ |
29,702 |
Other intangible assets |
|
25,891 |
|
|
20,756 |
|
|
50,373 |
Property, plant and equipment |
|
593,355 |
|
|
620,034 |
|
|
689,383 |
Other non-current financial assets |
|
4,984 |
|
|
5,057 |
|
|
5,683 |
Deferred tax assets |
|
620 |
|
|
— |
|
|
65,360 |
Non-current receivables from related parties |
|
2,345 |
|
|
2,454 |
|
|
2,191 |
Other non-current assets |
|
11,765 |
|
|
11,904 |
|
|
1,520 |
Non-current restricted cash and cash equivalents |
|
— |
|
|
— |
|
|
28,173 |
Total non-current
assets |
|
668,662 |
|
|
689,907 |
|
|
872,385 |
Current
assets |
|
|
|
|
|
|
|
|
Inventories |
|
228,145 |
|
|
246,549 |
|
|
287,258 |
Trade and other receivables |
|
276,633 |
|
|
242,262 |
|
|
216,970 |
Current receivables from related parties |
|
3,063 |
|
|
3,076 |
|
|
2,895 |
Current income tax assets |
|
12,277 |
|
|
12,072 |
|
|
16,298 |
Other current financial assets |
|
1,004 |
|
|
1,008 |
|
|
5,062 |
Other current assets |
|
45,028 |
|
|
20,714 |
|
|
16,113 |
Current restricted cash and cash equivalents |
|
6,069 |
|
|
28,843 |
|
|
— |
Cash and cash equivalents |
|
78,298 |
|
|
102,714 |
|
|
116,316 |
Total current
assets |
|
650,517 |
|
|
657,238 |
|
|
660,912 |
Total
assets |
$ |
1,319,179 |
|
$ |
1,347,145 |
|
$ |
1,533,297 |
|
|
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
Equity |
$ |
298,974 |
|
$ |
365,719 |
|
$ |
525,117 |
Non-current
liabilities |
|
|
|
|
|
|
|
|
Deferred income |
|
2,733 |
|
|
620 |
|
|
9,081 |
Provisions |
|
106,220 |
|
|
108,487 |
|
|
79,135 |
Bank borrowings |
|
5,042 |
|
|
5,277 |
|
|
111,583 |
Lease liabilities |
|
11,942 |
|
|
13,994 |
|
|
14,642 |
Debt instruments |
|
347,310 |
|
|
346,620 |
|
|
344,639 |
Other financial liabilities |
|
37,530 |
|
|
29,094 |
|
|
32,702 |
Other non-current liabilities |
|
16,727 |
|
|
16,767 |
|
|
26,817 |
Deferred tax liabilities |
|
26,834 |
|
|
27,781 |
|
|
69,084 |
Total non-current
liabilities |
|
554,338 |
|
|
548,640 |
|
|
687,683 |
Current
liabilities |
|
|
|
|
|
|
|
|
Provisions |
|
97,521 |
|
|
55,296 |
|
|
34,853 |
Bank borrowings |
|
73,965 |
|
|
102,330 |
|
|
1,369 |
Lease liabilities |
|
7,596 |
|
|
8,542 |
|
|
8,932 |
Debt instruments |
|
2,656 |
|
|
10,888 |
|
|
2,820 |
Other financial liabilities |
|
24,983 |
|
|
34,802 |
|
|
23,101 |
Payables to related parties |
|
5,042 |
|
|
3,196 |
|
|
4,572 |
Trade and other payables |
|
171,052 |
|
|
149,201 |
|
|
156,634 |
Current income tax liabilities |
|
3,947 |
|
|
2,538 |
|
|
1,485 |
Other current liabilities |
|
79,105 |
|
|
65,993 |
|
|
86,731 |
Total current
liabilities |
|
465,867 |
|
|
432,786 |
|
|
320,497 |
Total equity and
liabilities |
$ |
1,319,179 |
|
$ |
1,347,145 |
|
$ |
1,533,297 |
Ferroglobe PLC and
SubsidiariesUnaudited Condensed Consolidated
Statement of Cash Flows(in thousands of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
Cash flows from
operating activities: |
|
|
|
|
|
|
|
|
|
|
|
(Loss) profit for the period |
$ |
(68,517 |
) |
|
$ |
(139,831 |
) |
|
$ |
(49,057 |
) |
|
$ |
(249,758 |
) |
Adjustments to
reconcile net (loss) profit to net cash used
by operating activities: |
|
|
|
|
|
|
|
|
|
|
|
Income tax (benefit) expense |
|
(844 |
) |
|
|
36,185 |
|
|
|
(10,696 |
) |
|
|
21,939 |
|
Depreciation and amortization charges, operating allowances and
write-downs |
|
25,285 |
|
|
|
25,538 |
|
|
|
28,668 |
|
|
|
108,189 |
|
Net finance expense |
|
15,864 |
|
|
|
19,630 |
|
|
|
16,484 |
|
|
|
66,791 |
|
Financial derivatives loss (gain) |
|
— |
|
|
|
— |
|
|
|
(3,168 |
) |
|
|
(3,168 |
) |
Exchange differences |
|
9,314 |
|
|
|
(7,327 |
) |
|
|
(2,436 |
) |
|
|
(25,553 |
) |
Impairment losses |
|
— |
|
|
|
39,074 |
|
|
|
— |
|
|
|
73,344 |
|
Net loss (gain) due to changes in the value of asset |
|
(21 |
) |
|
|
(242 |
) |
|
|
— |
|
|
|
(158 |
) |
Gain on disposal of discontinued operation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,399 |
|
Gain on disposal of non-current assets |
|
(43 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,292 |
) |
Share-based compensation |
|
213 |
|
|
|
266 |
|
|
|
722 |
|
|
|
2,017 |
|
Other adjustments |
|
(2 |
) |
|
|
(582 |
) |
|
|
671 |
|
|
|
— |
|
Changes in operating
assets and liabilities |
|
|
|
|
|
|
|
|
|
|
— |
|
(Increase) decrease in inventories |
|
11,446 |
|
|
|
71,754 |
|
|
|
51,577 |
|
|
|
114,585 |
|
(Increase) decrease in trade receivables |
|
(41,692 |
) |
|
|
(53,604 |
) |
|
|
83,832 |
|
|
|
71,034 |
|
Increase (decrease) in trade payables |
|
26,152 |
|
|
|
(4,667 |
) |
|
|
(25,504 |
) |
|
|
(55,405 |
) |
Other |
|
41,179 |
|
|
|
18,509 |
|
|
|
(11,598 |
) |
|
|
14,473 |
|
Income taxes paid |
|
(57 |
) |
|
|
(1,177 |
) |
|
|
10,119 |
|
|
|
11,831 |
|
Net cash provided
(used) by operating activities |
|
18,277 |
|
|
|
3,526 |
|
|
|
89,614 |
|
|
|
154,268 |
|
Cash flows from
investing activities: |
|
|
|
|
|
|
|
|
|
|
|
Interest and finance income
received |
|
35 |
|
|
|
13 |
|
|
|
254 |
|
|
|
630 |
|
Payments due to
investments: |
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of subsidiary |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other intangible assets |
|
(3,486 |
) |
|
|
(2,654 |
) |
|
|
— |
|
|
|
(2,654 |
) |
Property, plant and equipment |
|
(5,683 |
) |
|
|
(11,861 |
) |
|
|
(4,606 |
) |
|
|
(30,257 |
) |
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Disposals: |
|
|
|
|
|
|
|
|
|
|
— |
|
Disposal of subsidiaries |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other non-current assets |
|
— |
|
|
|
295 |
|
|
|
— |
|
|
|
341 |
|
Other |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net cash (used)
provided by investing activities |
|
(9,134 |
) |
|
|
(14,207 |
) |
|
|
(4,352 |
) |
|
|
(31,940 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
|
|
|
|
|
Dividends paid |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Payment for debt issuance
costs |
|
(6,598 |
) |
|
|
(2,077 |
) |
|
|
(1,576 |
) |
|
|
(4,540 |
) |
Repayment of hydro leases |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Repayment of other financial
liabilities |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Increase/(decrease) in
bank borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
Borrowings |
|
127,690 |
|
|
|
169,571 |
|
|
|
— |
|
|
|
177,593 |
|
Payments |
|
(157,464 |
) |
|
|
(161,935 |
) |
|
|
(44,880 |
) |
|
|
(235,296 |
) |
Proceeds from stock option
exercises |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Amounts paid due to
leases |
|
(2,856 |
) |
|
|
(3,414 |
) |
|
|
— |
|
|
|
(10,315 |
) |
Other amounts received/(paid)
due to financing activities |
|
— |
|
|
|
(6,030 |
) |
|
|
1,147 |
|
|
|
(2,863 |
) |
Payments to acquire or redeem
own shares |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest paid |
|
(17,015 |
) |
|
|
(827 |
) |
|
|
(18,824 |
) |
|
|
(37,912 |
) |
Net cash (used)
provided by financing activities |
|
(56,243 |
) |
|
|
(4,712 |
) |
|
|
(64,133 |
) |
|
|
(113,333 |
) |
Total net cash flows
for the period |
|
(47,100 |
) |
|
|
(15,393 |
) |
|
|
21,129 |
|
|
|
8,995 |
|
Beginning balance of cash and cash equivalents |
|
131,557 |
|
|
|
147,425 |
|
|
|
123,175 |
|
|
|
123,175 |
|
Exchange differences on cash and cash equivalents in foreign
currencies |
|
(90 |
) |
|
|
(475 |
) |
|
|
185 |
|
|
|
(613 |
) |
Ending balance of cash
and cash equivalents |
$ |
84,367 |
|
|
$ |
131,557 |
|
|
$ |
144,489 |
|
|
$ |
131,557 |
|
Cash from continuing
operations |
|
78,298 |
|
|
|
102,714 |
|
|
|
116,316 |
|
|
|
102,714 |
|
Current/Non-current restricted
cash and cash equivalents |
|
6,069 |
|
|
|
28,843 |
|
|
|
28,173 |
|
|
|
28,843 |
|
Cash and restricted
cash in the statement of financial position |
$ |
84,367 |
|
|
$ |
131,557 |
|
|
$ |
144,489 |
|
|
$ |
131,557 |
|
Adjusted EBITDA ($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
(Loss) profit attributable to the parent |
$ |
(67,382 |
) |
|
$ |
(139,050 |
) |
|
$ |
(47,898 |
) |
|
$ |
(246,339 |
) |
(Loss) profit for the period
from discontinued operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
5,399 |
|
Loss (profit) attributable to
non-controlling interest |
|
(1,135 |
) |
|
|
(781 |
) |
|
|
(1,159 |
) |
|
|
(3,419 |
) |
Income tax (benefit)
expense |
|
(844 |
) |
|
|
36,185 |
|
|
|
(10,696 |
) |
|
|
21,939 |
|
Net finance expense |
|
15,864 |
|
|
|
19,630 |
|
|
|
16,484 |
|
|
|
66,791 |
|
Financial derivatives loss
(gain) |
|
— |
|
|
|
— |
|
|
|
(3,168 |
) |
|
|
(3,168 |
) |
Exchange differences |
|
9,314 |
|
|
|
(7,327 |
) |
|
|
(2,436 |
) |
|
|
(25,553 |
) |
Depreciation and amortization
charges, operating allowances and write-downs |
|
25,285 |
|
|
|
25,538 |
|
|
|
28,668 |
|
|
|
108,189 |
|
EBITDA |
|
(18,898 |
) |
|
|
(65,805 |
) |
|
|
(20,205 |
) |
|
|
(76,161 |
) |
Impairment |
|
— |
|
|
|
39,074 |
|
|
|
— |
|
|
|
73,344 |
|
Restructuring and termination
costs |
|
40,967 |
|
|
|
3,773 |
|
|
|
— |
|
|
|
3,773 |
|
Energy: France |
|
— |
|
|
|
— |
|
|
|
125 |
|
|
|
70 |
|
Energy: South Africa |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
156 |
|
Staff Costs: South
Africa |
|
— |
|
|
|
— |
|
|
|
155 |
|
|
|
— |
|
Other Idling Costs |
|
— |
|
|
|
— |
|
|
|
2,308 |
|
|
|
2,887 |
|
Tolling agreement |
|
— |
|
|
|
28,441 |
|
|
|
— |
|
|
|
28,441 |
|
Adjusted
EBITDA |
$ |
22,069 |
|
|
$ |
5,483 |
|
|
$ |
(17,617 |
) |
|
$ |
32,510 |
|
Adjusted profit attributable to
Ferroglobe ($,000):
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
(Loss) profit attributable to the parent |
$ |
(67,382 |
) |
|
$ |
(139,050 |
) |
|
$ |
(47,898 |
) |
|
$ |
(246,339 |
) |
Tax rate adjustment |
|
21,352 |
|
|
|
69,352 |
|
|
|
8,425 |
|
|
|
93,113 |
|
Impairment |
|
— |
|
|
|
26,570 |
|
|
|
— |
|
|
|
49,874 |
|
Restructuring and termination costs |
|
27,858 |
|
|
|
2,566 |
|
|
|
— |
|
|
|
2,566 |
|
Energy: France |
|
— |
|
|
|
— |
|
|
|
85 |
|
|
|
48 |
|
Energy: South Africa |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
106 |
|
Staff Costs: South Africa |
|
— |
|
|
|
— |
|
|
|
105 |
|
|
|
— |
|
Other Idling Costs |
|
— |
|
|
|
— |
|
|
|
1,569 |
|
|
|
1,963 |
|
Tolling agreement |
|
— |
|
|
|
19,340 |
|
|
|
— |
|
|
|
19,340 |
|
Adjusted (loss) profit
attributable to the parent |
$ |
(18,172 |
) |
|
$ |
(21,222 |
) |
|
$ |
(37,714 |
) |
|
$ |
(79,329 |
) |
Adjusted diluted profit per
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended |
|
Quarter Ended |
|
Quarter Ended |
|
Year Ended |
|
March 31, 2021 |
|
December 31, 2020 |
|
March 31, 2020 |
|
December 31, 2020 |
Diluted (loss) profit per ordinary share |
$ |
(0.40 |
) |
|
$ |
(0.82 |
) |
|
$ |
(0.28 |
) |
|
$ |
(1.46 |
) |
Tax rate adjustment |
|
— |
|
|
|
0.32 |
|
|
|
0.05 |
|
|
|
— |
|
Impairment |
|
— |
|
|
|
0.16 |
|
|
|
— |
|
|
|
0.29 |
|
Restructuring and termination costs |
|
0.16 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.02 |
|
Energy: France |
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
0.00 |
|
Energy: South Africa |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
|
Staff Costs: South Africa |
|
— |
|
|
|
— |
|
|
|
0.00 |
|
|
|
— |
|
Other Idling Costs |
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.01 |
|
Tolling agreement |
|
— |
|
|
|
0.10 |
|
|
|
— |
|
|
|
0.11 |
|
Adjusted diluted
(loss) profit per ordinary share |
$ |
(0.24 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.22 |
) |
|
$ |
(1.03 |
) |
Ferroglobe (NASDAQ:GSM)
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From Mar 2024 to Apr 2024
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From Apr 2023 to Apr 2024