BEIJING, Feb. 1, 2013 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), one
of China's leading non-state-owned
producers of steel products and aggregators of domestic steel
companies, today announced financial results for the second quarter
ended June 30, 2011 and the third
quarter ended September 30, 2011. In
conjunction with this announcement, the Company has filed the
corresponding Quarterly Reports on Form 10-Q with the U.S.
Securities & Exchange Commission ("SEC").
"The completion of these financial reports marks an important
step forward for General Steel. Our finance team and audit partners
continue to work diligently to complete the additional quarterly
and annual filings to bring the Company current in its reporting
obligations and to regain compliance with NYSE continued listing
requirements," said Henry Yu,
Chairman and Chief Executive Officer of General Steel. "We have
made a great deal of operational progress. I believe that our
business is markedly stronger as a result of favorable trends in
our core market of Western China,
as well as internal measures we have taken to improve our business
at the manufacturing level and elsewhere. I would like to thank our
team for their tireless efforts to complete these filings and our
shareholders for their continued support of the Company."
General Steel is currently preparing its Annual Report on Form
10-K for the year ended December 31,
2011 and expects to file it around February 15, 2013. General Steel is also
preparing its Quarterly Reports on Form 10-Q for the first, second
and third quarters of 2012, and plans to file these reports with
the SEC as soon as practicable.
Second Quarter 2011 Financial Summary
- Revenue increased 111.6% year-over-year to $1.1 billion in the second quarter of 2011, from
$502.0 million in the second quarter
of 2010.
- Second quarter 2011 sales volume totaled approximately 1.8
million metric tons, compared with 1.0 million metric tons in the
second quarter of 2010.
- Gross profit increased 216.9% year-over-year to $23.3 million, or 2.2% of revenue, up from
$7.4 million, or 1.5% of revenue in
the second quarter of 2010.
- Operating loss for the quarter was $(3.7) million, compared with an operating loss
of $(6.3) million in the second
quarter of 2010.
- Net loss attributable to the Company was $(22.9) million, or $(0.42) per diluted share based on 54.3 million
weighted average shares outstanding, compared with a net loss of
$(2.0) million, or $(0.04) per diluted share based on 52.1 million
weighted average shares outstanding in the second quarter of 2010.
The increased net loss for the second quarter of 2011 was primarily
attributable to a $5.4 million
increase in impairment charge on equipment, an increase of
$6.7 million in interest expense on
capital lease and a decrease of $8.9
million related to the change in fair value of derivative
liabilities, partially offset by an increase of $3.4 million in gain from debt extinguishment. In
addition, we determined the net operating loss carry forward may
not be fully realizable and provided 100% valuation allowance
charges of $19.3 million on our
deferred tax assets.
Third Quarter 2011 Financial Summary
- Revenue increased 116.9% year-over-year to $998.2 million, from $460.3 million in the same period in 2010.
- Sales volume in the third quarter of 2011 totaled approximately
1.7 million metric tons, compared with approximately 0.9 million
metric tons for the same period in 2010.
- Gross profit increased 150.6% to $34.1
million, or 3.4% of revenue, compared with $13.6 million, or 3.0% of revenue for the same
period in 2010.
- Operating income totaled $9.7
million, compared with $4.0
million for the same period in 2010.
- Net loss attributable to the Company was $(13.8) million, or $(0.25) per diluted share, based on 55.2 million
weighted average shares outstanding, compared with a net loss of
$(3.8) million, or $(0.07) per diluted share, based on 53.9 million
weighted average shares outstanding in the third quarter of 2010.
The increase in net loss for the third quarter of 2011 was
primarily related to an increase of $5.5
million in impairment charges on equipment, an increase of
$10.6 million in interest expense on
capital lease and a $14.3 million
increase in interest expense on bank borrowings, partially offset
by $9.7 million in operating
income.
Balance Sheet
As of September 30, 2011, General
Steel had cash and restricted cash of approximately $282.4 million, compared to $263.1 million as of December 31, 2010. The Company had an inventory
balance of approximately $432.1
million as of September 30,
2011 compared to $453.6
million as of December 31,
2010. As of September 30,
2011, the Company had total liabilities of approximately
$2.8 billion.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., (NYSE: GSI), headquartered in
Beijing, China, operates a diverse
portfolio of Chinese steel companies. With 7 million metric tons of
crude steel production capacity under management, its subsidiaries
serve various industries and produce a variety of steel products
including rebar, high-speed wire and spiral-weld pipe. General
Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region and Tianjin municipality.
For more information, please visit www.gshi-steel.com.
To be added to the General Steel email list to receive Company
news, please send your request to generalsteel@tpg-ir.com.
Forward-Looking Statements
This press release may contain certain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. These statements are based on management's
current expectations or beliefs about future events and financial,
political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure
that any expectations, forecasts or assumptions made by management
in preparing these forward-looking statements will prove accurate,
or that any projections will be realized. Actual results could
differ materially from those projected in the forward-looking
statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set
forth in the Company's filings under the Securities Act of 1933 and
the Securities Exchange Act of 1934 under "Risk Factors" and
elsewhere, and include: (a) those risks and uncertainties related
to general economic conditions in China, including regulatory factors that may
affect such economic conditions; (b) whether the Company is able to
manage its planned growth efficiently and operate profitable
operations, including whether its management will be able to
identify, hire, train, retain, motivate and manage required
personnel or that management will be able to successfully manage
and exploit existing and potential market opportunities; (c)
whether the Company is able to generate sufficient revenues or
obtain financing to sustain and grow its operations; (d) whether
the Company is able to successfully fulfill our primary
requirements for cash; and (e) other risks, including those
disclosed in the Company's Form 10-K, filed with the SEC.
Forward-looking statements contained herein speak only as of the
date of this release. The Company does not undertake any obligation
to update or revise publicly any forward-looking statements,
whether to reflect new information, future events or
otherwise.
Contact Us
In China:
Jenny Wang
General Steel Holdings, Inc.
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
Joyce Sung
General Steel Holdings, Inc.
Tel: (347) 534-1435
Email: joyce.sung@gshi-steel.com
The Piacente Group, Inc.
Investor Relations
Brandi Floberg or Lee Roth
Tel: (212) 481-2050
Email: generalsteel@tpg-ir.com
GENERAL
STEEL HOLDINGS INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
September
30,
|
|
December
31,
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS:
|
|
|
|
|
|
Cash
|
$
|
91,713
|
$
|
65,271
|
|
Restricted
cash
|
|
190,681
|
|
197,797
|
|
Notes
receivable
|
|
30,907
|
|
49,147
|
|
Restricted
notes receivable
|
|
516,662
|
|
240,298
|
|
Accounts
receivable, net
|
|
38,362
|
|
18,500
|
|
Accounts
receivable - related parties
|
|
10,594
|
|
4,160
|
|
Other
receivables, net
|
|
20,132
|
|
11,150
|
|
Other
receivables - related parties
|
|
87,748
|
|
10,938
|
|
Inventories
|
|
432,144
|
|
453,636
|
|
Advances on
inventory purchase
|
|
108,031
|
|
24,577
|
|
Advances on
inventory purchase - related parties
|
|
79,893
|
|
6,187
|
|
Prepaid
expense
|
|
898
|
|
5,018
|
|
Prepaid value
added tax
|
|
15,170
|
|
37,323
|
|
Short term
investment
|
|
2,660
|
|
-
|
|
Deferred tax
assets
|
|
166
|
|
15,301
|
|
TOTAL
CURRENT ASSETS
|
1,625,761
|
|
1,139,303
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,213,799
|
|
602,612
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
Advances on
equipment purchase
|
|
11,268
|
|
14,898
|
|
Investment in
unconsolidated subsidiaries
|
|
10,522
|
|
17,456
|
|
Long-term
deferred expense
|
|
|
|
679
|
|
1,439
|
|
Intangible
assets, net of accumulated amortization
|
|
23,824
|
|
23,672
|
|
TOTAL
OTHER ASSETS
|
|
46,293
|
|
57,465
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
2,885,853
|
$
|
1,799,380
|
|
|
|
|
|
|
|
|
LIABILITIES
AND EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
Short term
notes payable
|
$
|
554,931
|
$
|
480,152
|
|
Accounts
payable
|
|
404,960
|
|
241,367
|
|
Accounts
payable - related parties
|
|
114,309
|
|
79,694
|
|
Short term
loans - bank
|
|
402,428
|
|
285,198
|
|
Short term
loans - others
|
|
227,198
|
|
127,712
|
|
Short term
loans - related parties
|
|
15,650
|
|
14,548
|
|
Other payables
and accrued liabilities
|
|
37,962
|
|
30,087
|
|
Other payable
- related parties
|
|
14,905
|
|
18,214
|
|
Customer
deposit
|
|
192,153
|
|
133,464
|
|
Customer
deposit - related parties
|
|
54,385
|
|
54,922
|
|
Deposit due to
sales representatives
|
|
21,488
|
|
52,079
|
|
Taxes
payable
|
|
12,020
|
|
6,237
|
|
Deferred lease
income, current
|
|
2,091
|
|
1,971
|
|
Capital lease
obligations, current
|
|
18,505
|
|
-
|
|
TOTAL
CURRENT LIABILITIES
|
|
2,072,985
|
|
1,525,645
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
Long-term
loans - related party
|
|
107,695
|
|
91,020
|
|
Deferred lease
income, noncurrent
|
|
76,358
|
|
55,620
|
|
Capital lease
obligations, noncurrent
|
|
281,510
|
|
-
|
|
Profit sharing
liability, noncurrent
|
|
296,723
|
|
-
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
762,286
|
|
146,640
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DERIVATIVE
LIABILITIES
|
|
48
|
|
5,573
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
2,835,319
|
|
1,677,858
|
|
|
|
|
|
|
|
|
COMMITMENT AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY:
|
|
|
|
|
|
Preferred
stock, $0.001 par value, 50,000,000 shares authorized, 3,092,899
shares
|
|
|
|
|
|
issued
and outstanding as of September 30, 2011 and December 31,
2010
|
|
3
|
|
3
|
|
Common Stock,
$0.001 par value, 200,000,000 shares authorized,
56,435,838
|
|
|
|
|
|
and
54,678,803 issued, 55,344,860 and 54,522,973 outstanding as
of
|
|
|
|
|
|
September
30, 2011 and December 31, 2010, respectively
|
|
55
|
|
55
|
|
Treasury
stock, at cost, 1,090,978 and 316,760 shares as of September 30,
2011
|
|
|
|
|
|
and
December 31, 2010, respectively.
|
|
(2,795)
|
|
(871)
|
|
Paid-in-capital
|
|
107,698
|
|
104,970
|
|
Statutory
reserves
|
|
6,475
|
|
6,202
|
|
Accumulated
deficits
|
|
(97,455)
|
|
(51,793)
|
|
Accumulated
other comprehensive income
|
|
13,071
|
|
10,987
|
|
TOTAL
GENERAL STEEL HOLDINGS, INC. EQUITY
|
|
27,052
|
|
69,553
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
23,482
|
|
51,969
|
|
|
|
|
|
|
|
|
|
TOTAL
EQUITY
|
|
50,534
|
|
121,522
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND EQUITY
|
$
|
2,885,853
|
$
|
1,799,380
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME (LOSS)
|
FOR THE
THREE AND SIX MONTHS ENDED JUNE 30, 2011 AND 2010
|
(UNAUDITED)
|
(In
thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended June 30,
|
|
For the
six months ended June 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
SALES
|
$
|
814,599
|
$
|
383,173
|
$
|
1,316,078
|
$
|
700,801
|
|
|
|
|
|
|
|
|
|
SALES -
RELATED PARTIES
|
|
247,132
|
|
118,506
|
|
456,117
|
|
253,901
|
TOTAL SALES
|
|
1,061,731
|
|
501,679
|
|
1,772,195
|
|
954,702
|
|
|
|
|
|
|
|
|
|
COST OF
GOODS SOLD
|
|
793,298
|
|
369,433
|
|
1,291,213
|
|
686,996
|
|
|
|
|
|
|
|
|
|
COST OF
GOODS SOLD - RELATED PARTIES
|
|
245,093
|
|
124,882
|
|
452,593
|
|
254,596
|
TOTAL COST OF GOODS SOLD
|
|
1,038,391
|
|
494,315
|
|
1,743,806
|
|
941,592
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
23,340
|
|
7,364
|
|
28,389
|
|
13,110
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL AND ADMINISTRATIVE
EXPENSES
|
|
27,033
|
|
13,677
|
|
41,534
|
|
25,813
|
|
|
|
|
|
|
|
|
|
LOSS FROM
OPERATIONS
|
|
(3,693)
|
|
(6,313)
|
|
(13,145)
|
|
(12,703)
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest income
|
|
816
|
|
617
|
|
1,879
|
|
1,737
|
Finance/interest expense
|
|
(23,117)
|
|
(16,464)
|
|
(37,236)
|
|
(27,427)
|
Change in fair value of derivative liabilities
|
|
1,839
|
|
10,729
|
|
5,391
|
|
14,668
|
Gain on debt settlement
|
|
3,430
|
|
-
|
|
3,430
|
|
-
|
Gain (loss) on disposal of equipments
|
|
387
|
|
(227)
|
|
(10)
|
|
(343)
|
Income from equity investments
|
|
1,856
|
|
3,074
|
|
3,511
|
|
3,229
|
Foreign currency transaction gain
|
|
1,030
|
|
-
|
|
1,649
|
|
-
|
Lease income
|
|
512
|
|
184
|
|
964
|
|
320
|
Other non-operating income (expense), net
|
|
(455)
|
|
855
|
|
(150)
|
|
1,014
|
Other expense, net
|
|
(13,702)
|
|
(1,232)
|
|
(20,572)
|
|
(6,802)
|
|
|
|
|
|
|
|
|
|
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
AND NONCONTROLLING INTEREST
|
|
(17,395)
|
|
(7,545)
|
|
(33,717)
|
|
(19,505)
|
|
|
|
|
|
|
|
|
|
PROVISION
FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
Current
|
|
-
|
|
170
|
|
207
|
|
584
|
Deferred
|
|
18,198
|
|
(2,973)
|
|
15,240
|
|
(5,324)
|
Provision (benefit) for income taxes
|
|
18,198
|
|
(2,803)
|
|
15,447
|
|
(4,740)
|
|
|
|
|
|
|
|
|
|
NET
LOSS
|
|
(35,593)
|
|
(4,742)
|
|
(49,164)
|
|
(14,765)
|
|
|
|
|
|
|
|
|
|
Less: Net
loss attributable to noncontrolling interest
|
|
(12,678)
|
|
(2,738)
|
|
(17,332)
|
|
(7,149)
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.
|
$
|
(22,915)
|
$
|
(2,004)
|
$
|
(31,832)
|
$
|
(7,616)
|
|
|
|
|
|
|
|
|
|
NET
LOSS
|
$
|
(35,593)
|
$
|
(4,742)
|
$
|
(49,164)
|
$
|
(14,765)
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
Foreign currency translation adjustments
|
|
(287)
|
|
312
|
|
1,400
|
|
151
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
|
|
(35,880)
|
|
(4,430)
|
|
(47,764)
|
|
(14,614)
|
|
|
|
|
|
|
|
|
|
Less:
Comprehensive loss attributable to noncontrolling
interest
|
|
(12,858)
|
|
(2,740)
|
|
(17,270)
|
|
(7,032)
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
$
|
(23,022)
|
$
|
(1,690)
|
$
|
(30,494)
|
$
|
(7,582)
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
54,318
|
|
52,112
|
|
54,233
|
|
51,883
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
$
|
(0.42)
|
$
|
(0.04)
|
$
|
(0.59)
|
$
|
(0.15)
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE
INCOME (LOSS)
|
FOR THE
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
|
(UNAUDITED)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
For the
three months ended
|
|
For the
nine months ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
SALES
|
$
|
662,437
|
$
|
340,703
|
$
|
1,978,515
|
$
|
1,041,504
|
|
|
|
|
|
|
|
|
|
SALES -
RELATED PARTIES
|
|
335,724
|
|
119,574
|
|
791,841
|
|
373,475
|
TOTAL
SALES
|
|
998,161
|
|
460,277
|
|
2,770,356
|
|
1,414,979
|
|
|
|
|
|
|
|
|
|
COST OF
GOODS SOLD
|
|
639,239
|
|
334,856
|
|
1,930,452
|
|
1,021,852
|
|
|
|
|
|
|
|
|
|
COST OF
GOODS SOLD - RELATED PARTIES
|
|
324,872
|
|
111,832
|
|
777,465
|
|
366,428
|
TOTAL COST
OF GOODS SOLD
|
|
964,111
|
|
446,688
|
|
2,707,917
|
|
1,388,280
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
34,050
|
|
13,589
|
|
62,439
|
|
26,699
|
|
|
|
|
|
|
|
|
|
SELLING,
GENERAL AND ADMINISTRATIVE EXPENSES
|
|
24,309
|
|
9,560
|
|
65,843
|
|
35,373
|
|
|
|
|
|
|
|
|
|
INCOME
(LOSS) FROM OPERATIONS
|
|
9,741
|
|
4,029
|
|
(3,404)
|
|
(8,674)
|
|
|
|
|
|
|
|
|
|
OTHER
INCOME (EXPENSE)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,201
|
|
1,739
|
|
3,080
|
|
3,476
|
Finance/interest expense
|
|
(35,081)
|
|
(10,190)
|
|
(72,317)
|
|
(37,617)
|
Change in
fair value of derivative liabilities
|
|
135
|
|
(1,089)
|
|
5,526
|
|
13,579
|
Gain on
debt settlement
|
|
-
|
|
-
|
|
3,430
|
|
-
|
Gain
(loss) on disposal of equipment
|
|
689
|
|
(2,781)
|
|
679
|
|
(3,124)
|
Government
grant
|
|
-
|
|
1,381
|
|
-
|
|
1,381
|
Income
from equity investments
|
|
790
|
|
838
|
|
4,301
|
|
4,067
|
Foreign
currency transaction gain
|
|
1,271
|
|
-
|
|
2,920
|
|
-
|
Lease
income
|
|
525
|
|
277
|
|
1,489
|
|
598
|
Other
non-operating expense, net
|
|
(1,047)
|
|
1,141
|
|
(1,197)
|
|
2,154
|
Other
expense, net
|
|
(31,517)
|
|
(8,684)
|
|
(52,089)
|
|
(15,486)
|
|
|
|
|
|
|
|
|
|
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
AND
NONCONTROLLING INTEREST
|
|
(21,776)
|
|
(4,655)
|
|
(55,493)
|
|
(24,160)
|
|
|
|
|
|
|
|
|
|
PROVISION
FOR INCOME TAXES
|
|
|
|
|
|
|
|
|
Current
|
|
410
|
|
5,332
|
|
617
|
|
860
|
Deferred
|
|
144
|
|
(5,676)
|
|
15,384
|
|
(5,944)
|
Provision
(benefit) for income taxes
|
|
554
|
|
(344)
|
|
16,001
|
|
(5,084)
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
(22,330)
|
|
(4,311)
|
|
(71,494)
|
|
(19,076)
|
|
|
|
|
|
|
|
|
|
Less: Net
loss attributable to noncontrolling interest
|
|
(8,500)
|
|
(527)
|
|
(25,832)
|
|
(7,676)
|
|
|
|
|
|
|
|
|
|
NET LOSS
ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.
|
$
|
(13,830)
|
$
|
(3,784)
|
$
|
(45,662)
|
$
|
(11,400)
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
$
|
(22,330)
|
$
|
(4,311)
|
$
|
(71,494)
|
$
|
(19,076)
|
|
|
|
|
|
|
|
|
|
OTHER
COMPREHENSIVE LOSS
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
999
|
|
3,295
|
|
2,399
|
|
3,446
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
|
|
(21,331)
|
|
(1,016)
|
|
(69,095)
|
|
(15,630)
|
|
|
|
|
|
|
|
|
|
Less:
Comprehensive loss income attributable to noncontrolling
interest
|
|
(8,247)
|
|
553
|
|
(25,517)
|
|
(6,479)
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
$
|
(13,084)
|
$
|
(1,569)
|
$
|
(43,578)
|
$
|
(9,151)
|
|
|
|
|
|
|
|
|
|
WEIGHTED
AVERAGE NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
55,166
|
|
53,941
|
|
54,547
|
|
52,577
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
$
|
(0.25)
|
$
|
(0.07)
|
$
|
(0.84)
|
$
|
(0.22)
|
|
|
|
|
|
|
|
|
|
GENERAL
STEEL HOLDINGS, INC. AND SUBSIDIARIES
|
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE
NINE MONTHS ENDED SEPTEMBER 30, 2011 AND 2010
|
(UNAUDITED)
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
months ended September 30,
|
|
|
|
|
|
|
2011
|
|
2010
|
CASH FLOWS
FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
Net
loss
|
$
|
(71,494)
|
$
|
(19,076)
|
|
Adjustments to reconcile net loss to cash provided by
(used in) operating activities:
|
|
|
|
|
|
Depreciation and amortization
|
|
40,385
|
|
31,175
|
|
Impairment
of plant and equipment
|
|
5,412
|
|
1,737
|
|
Bad debt
allowance
|
|
127
|
|
-
|
|
Stock
issued for services and compensation
|
|
1,288
|
|
2,018
|
|
Make whole
shares interest expense on notes conversion
|
|
-
|
|
1,130
|
|
Change in
fair value of derivative liabilities
|
|
(5,526)
|
|
(13,579)
|
|
Gain on
stock issued as loan repayment
|
|
(3,430)
|
|
-
|
|
(Gain)
loss on disposal of equipment
|
|
(679)
|
|
3,124
|
|
Amortization of deferred note issuance cost and
discount on convertible notes
|
|
-
|
|
17
|
|
Amortization of deferred financing cost on capital
lease
|
|
17,282
|
|
-
|
|
Income
from equity investments
|
|
(3,887)
|
|
(3,983)
|
|
Deferred
tax assets
|
|
15,384
|
|
(5,885)
|
|
Deferred
lease income
|
|
5,286
|
|
2,265
|
|
Foreign
currency transaction gain
|
|
(2,920)
|
|
-
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
Notes
receivable
|
|
19,497
|
|
(36,702)
|
|
Notes
receivable - restricted
|
|
(264,708)
|
|
(12,530)
|
|
Accounts
receivable
|
|
(18,986)
|
|
(12,190)
|
|
Accounts
receivable - related parties
|
|
(6,207)
|
|
-
|
|
Other
receivables
|
|
(8,626)
|
|
1,323
|
|
Other
receivables - related parties
|
|
(50,311)
|
|
(26,404)
|
|
Inventories
|
|
35,305
|
|
(44,861)
|
|
Advances
on inventory purchases
|
|
(81,430)
|
|
(12,921)
|
|
Advances
on inventory purchases - related parties
|
|
(72,402)
|
|
(52,665)
|
|
Prepaid
expense
|
|
4,214
|
|
-
|
|
Long-term
deferred expense
|
|
793
|
|
-
|
|
Prepaid
value added tax
|
|
22,982
|
|
-
|
|
Accounts
payable
|
|
153,604
|
|
12,513
|
|
Accounts
payable - related parties
|
|
31,609
|
|
30,294
|
|
Other
payables and accrued liabilities
|
|
6,819
|
|
(3,542)
|
|
Other
payables - related parties
|
|
(3,827)
|
|
18,510
|
|
Customer
deposits
|
|
53,645
|
|
(19,283)
|
|
Customer
deposits - related parties
|
|
(2,241)
|
|
43,045
|
|
Taxes
payable
|
|
5,501
|
|
811
|
|
Net cash
used in operating activities
|
|
(177,541)
|
|
(115,659)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
Restricted
cash
|
|
13,173
|
|
9,281
|
|
Acquired
long term investment
|
|
-
|
|
(1,277)
|
|
Proceeds
from disposal of long-term investment
|
|
-
|
|
3,678
|
|
Dividend
receivable
|
|
-
|
|
938
|
|
Cash made
to short term investment
|
|
(2,620)
|
|
-
|
|
Cash
proceeds from sales of equipment
|
|
1,271
|
|
306
|
|
Advance on
equipment purchases
|
|
-
|
|
(12,698)
|
|
Equipment
purchase and intangible assets
|
|
(54,494)
|
|
(56,906)
|
|
Net cash
used in investing activities
|
|
(42,670)
|
|
(56,678)
|
|
|
|
|
|
|
|
|
|
CASH FLOWS
FINANCING ACTIVITIES:
|
|
|
|
|
|
Capital
contributed by noncontrolling interest
|
|
-
|
|
1,177
|
|
Dividend
made to dividend distribution
|
|
-
|
|
(3,835)
|
|
Payments
made for treasury stock acquired
|
|
(1,925)
|
|
-
|
|
Borrowings
on short term loans - bank
|
|
446,532
|
|
224,425
|
|
Payments
on short term loans - bank
|
|
(337,038)
|
|
(198,770)
|
|
Borrowings
on short term loan - others
|
|
245,381
|
|
128,115
|
|
Payments
on short term loans - others
|
|
(151,375)
|
|
(137,413)
|
|
Borrowings
on short term loan - related parties
|
|
15,414
|
|
91,202
|
|
Payments
on short term loans - related parties
|
|
(9,912)
|
|
(11,783)
|
|
Borrowings
on short term notes payable
|
|
859,561
|
|
573,413
|
|
Payments
on short term notes payable
|
|
(800,873)
|
|
(531,850)
|
|
Deposits
due to sales representatives
|
|
(31,753)
|
|
(4,028)
|
|
Borrowings
on long term loans - related parties
|
|
13,587
|
|
-
|
|
Net cash
provided by financing activities
|
|
247,599
|
|
130,653
|
|
|
|
|
|
|
|
|
|
EFFECTS OF
EXCHANGE RATE CHANGE IN CASH
|
|
(946)
|
|
1,344
|
|
|
|
|
|
|
|
|
|
INCREASE
(DECREASE) IN CASH
|
|
26,442
|
|
(40,340)
|
|
|
|
|
|
|
|
|
|
CASH,
beginning of period
|
|
65,271
|
|
82,118
|
|
|
|
|
|
|
|
|
|
CASH, end
of period
|
$
|
91,713
|
$
|
41,778
|
SOURCE General Steel Holdings, Inc.