BEIJING, Aug. 30, 2013 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-owned steel producer in China, today announced financial results for
the second quarter ended June 30,
2013. The Company will file its Form 10-Q for the quarter
ended June 30, 2013 with the
Securities and Exchange Commission after market closes on
Friday, August 30, 2013.
"During the second quarter, the average selling price of rebar
decreased over 5% sequentially to near the year's lowest level, and
as a result, despite a higher shipping volume, our total sales and
profit margins declined, causing widened net losses," said
Henry Yu, Chairman and Chief
Executive Officer of General Steel. "However, this August, we were
encouraged to witness an improvement in the pricing trend of steel
in China, and since we have
significantly improved our efficiency and cost structure, we feel
very positive about our ability to enhance profitability in the
second half of 2013."
"In addition, the filing of our quarterly results for the second
quarter of 2013 marks the final
milestone in our persistent efforts to regaining full compliance
with the SEC's reporting requirements. Given our regained filing
status, we are once again able to restart our share repurchase
program. Personally, and on behalf of the Company, we are confident
about our long-term prospects, and are committed to enhance
shareholders' value and wealth."
Second Quarter 2013 Financial
Information
- Sales decreased by 16.3% year-over-year to $653.7 million, from $780.7 million in the second quarter of
2012.
- Sales volume increased by 3.4% year-over-year to approximately
1.4 million metric tons, compared with 1.3 million metric tons in
the second quarter of 2012.
- Gross loss was $(35.5) million,
or negative (5.4%) of revenue, compared with a gross profit of
$28.0 million, or 3.6% of revenue in
the second quarter of 2012.
- Operating loss was $(42.2)
million, compared with an operating income of $7.9 million in the second quarter of 2012.
- Net loss attributable to the Company was $(39.8) million, or $(0.72) per diluted share, compared with a net
loss of $(26.4) million, or
$(0.48) per diluted share in the
second quarter of 2012.
- Operating cash net outflow was $(65.3)
million, compared with a net inflow of $67.4 million in the second quarter of 2012.
- As of June 30, 2013, the Company
had cash and restricted cash of $448.5
million.
First Six Months 2013 Financial Information
- Sales decreased by 8.7% year-over-year to $1.3 billion, from $1.4
billion in the first six months of 2012.
- Sales volume increased by 7.0% year-over-year to approximately
2.7 million metric tons, compared with 2.5 million metric tons in
the first six months of 2012.
- Gross loss was $(31.5) million,
or negative (2.4%) of revenue, compared with a gross profit of
$33.7 million, or 2.4% of revenue in
the first six months of 2012.
- Operating loss was $(5.2)
million, compared with an operating loss of $(5.1) million in the first six months of
2012.
- Net loss attributable to the Company was $(36.7) million, or $(0.67) per diluted share, compared with a net
loss of $(61.2) million, or
$(1.11) per diluted share in the
first six months of 2012.
- Operating cash net outflow was $(61.4)
million, compared with a net outflow of $(99.6) million in the first six months of
2012.
John Chen, Chief Financial
Officer of General Steel, commented, "Although the steeper drop in
average selling price of rebar caused a decline in sales and gross
losses, we continued to strongly execute on our internal
objectives. We achieved continued improvements in inventory
efficiency, and outstanding savings in finance expense by over
$28 million compared with the same
period of last year. As our new continuous rolling rebar lines
enter full production, we are poised to achieve greater
profitability improvement and positive gross margins in the second
half of 2013."
Second Quarter 2013 Financial and Operating Results
Total Sales
Total sales for the second quarter of 2013 decreased by 16.3%
year-over-year to $653.7 million,
compared with $780.7 million in the
second quarter of 2012. The year-over-year revenue decreases were
due to a decrease in the average selling price of the products
despite an increased sales volume.
- Total sales volume in the second quarter of 2013 was 1.4
million metric tons, an increase of 3.4% compared with 1.3 million
metric tons in the second quarter of 2012.
- The average selling price of rebar decreased 19.0% to
approximately $482.7 in the second
quarter of 2013 from approximately $596.2 in the same period of 2012.
Gross Profit and Gross Margin
Gross loss for the quarter was $(35.5)
million, compared with a gross profit of $28.0 million in the second quarter of 2012. The
decrease in gross profit was mainly attributable to a steeper
decrease in average selling price of rebar, with the gross margin
decreased to negative (5.4%) of total sales in the second quarter
of 2013, compared with 3.6% of total sales in the same period a
year ago.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the second
quarter of 2013 increased 3.6% to $20.8
million, compared to $20.1
million in the second quarter of 2012. General and
administrative expenses increased to $11.6
million, compared with $9.8
million in the same period of 2012, due to increased expense
in human resources and a $1.2 million
write-off of prepared special fund. Selling expenses decreased by
9.9% to $9.3 million, compared to
$10.3 million in the same period of
2012. The decrease in selling expense was primary attributable to a
savings in a special fund related to the sales of our products,
which was no long imposed by the PRC tax authorities in 2013, while
$1.6 million of the special fund was
imposed in the second quarter of 2012.
The Company recognized other operating income of $14.2 million due to change in the fair value of
profit sharing liability during the second quarter of 2013,
compared with $0 in the same period
of last year. On April 29, 2011, the
Company's subsidiary, Longmen Joint Venture entered into a capital
lease agreement with Shaanxi Steel and Shaanxi Coal for the use of
new equipment. The profit sharing liability is recognized initially
at its estimated fair value at the lease commencement date, and the
value of the profit sharing liability is reassessed each reporting
period with any change in fair value accounted for on a prospective
basis. As such, and in consideration of the recent changes in
China economic situation, the fair
value of the Company's profit sharing liability has been reduced as
compared to its previous estimates, and the Company recognized a
gain of $14.2 million during the
second quarter of 2013 accordingly.
Correspondingly, loss from operations for the second quarter of
2013 was $(42.2) million, compared
with an income from operations of $7.9
million in the second quarter of 2012.
Finance Expense
Finance and interest expense in the second quarter of 2013
decreased by $28.1 million to
$25.9 million, of which, $9.8 million was the non-cash interest expense on
capital lease as compared with $10.8
million in the same period of 2012, and $16.1 million was the interest expense on bank
loans and discounted note receivables as compared with $43.2 million in the second quarter of 2012. The
decrease in interest expense on bank loans and discounted note
receivables was primarily attributable to a reduction in the amount
of bank notes receivable redeemed early, and less interest-bearing
loans from banks and third parties, benefiting from additional
financing support from suppliers and vendors during the second
quarter of 2013.
Net Income and Net Income per Share
Net loss attributable to General Steel for the second quarter of
2013 was $(39.8) million, or
$(0.72) per diluted share, based on
55.0 million weighted average shares outstanding. This compares to
a net loss of $(26.4) million, or
$(0.48) per diluted share, based on
54.9 million weighted average shares outstanding in the second
quarter of 2012.
First Six Months 2013 Financial Results and Operating
Results
Total Sales
Total sales for the first six months of 2013 decreased by 8.7%
year-over-year to $1.3 billion,
compared with $1.4 billion in the
first six months of 2012. The year-over-year revenue decreases were
due to a decrease in the average selling price of the products
despite an increased sales volume.
- Total sales volume in the first six months of 2013 was 2.7
million metric tons, an increase of 7.0% compared with 2.5 million
metric tons in the first six months of 2012.
- The average selling price of rebar decreased 15.9% to
approximately $498.4 in the first six
months of 2013 from approximately $592.8 in the same period of 2012.
Gross Profit and Gross Margin
Due to the steeper decrease in average selling price, gross loss
for the first six months of 2013 was $(31.5)
million, or (2.4%) of total sales, compared with a gross
profit of $33.7 million, or 2.4% of
total sale in the first six months of 2012.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the first six
months of 2013 increased 2.7% to $39.8
million, compared to $38.8
million in the first six months of 2012. General and
administrative expenses increased to $22.5
million, compared with $19.6
million in the same period of 2012. Selling expenses
decreased by 9.7% to $17.3 million,
compared to $19.2 million in the same
period of 2012. There was a $2.9
million special fund imposed in the first six months of
2012.
The Company recognized other operating income of $66.1 million due to change in the fair value of
profit sharing liability during the first six months of 2013,
compared with $0 in the same period
of last year.
Correspondingly, loss from operations for the first six months
of 2013 was $(5.2) million, compared
with $(5.1) million in the first six
months of 2012.
Finance Expense
Finance and interest expense in the first six months of 2013 was
$55.9 million, of which, $20.0 million was the non-cash interest expense
on capital lease as compared with $21.6
million in the same period of 2012, and $35.9 million was the interest expense on bank
loans and discounted note receivables as compared with $80.7 million in the first six months of
2012.
Net Income and Net Income per Share
Net loss attributable to General Steel for the first six months
of 2013 was $(36.7) million, or
$(0.67) per diluted share, based on
54.9 million weighted average shares outstanding. This compares to
a net loss of $(61.2) million, or
$(1.11) per diluted share, based on
55.2 million weighted average shares outstanding in the first six
months of 2012.
Balance Sheet
As of June 30, 2013, the Company
had cash and restricted cash of approximately $448.5 million, compared to $369.9 million as of December 31, 2012. The Company had an inventory
balance of approximately $160.2
million as of June 30, 2013,
compared to $212.7 million as of
December 31, 2012. As of June 30, 2013, the Company had total liabilities
of approximately $3.0 billion.
Share Repurchase Program
On March 27, 2012, the Company
launched a follow-on share repurchase program to repurchase up to
an aggregate of 2,000,000 shares of its common stock (the "Share
Repurchase Program"), which, together with the previous share
repurchase program launched in December
2010, had brought the total authorized shares of the
Company's common stock available for purchase to 4,000,000 shares.
As of August 29, 2013, the Company
has authorized shares of the Company's common stock available for
repurchase under the Share Repurchase Program of approximately 1.5
million.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live
webcast at 8:00 a.m. EDT on
Friday, August 30, 2013 (which
corresponds to 8:00 p.m. Beijing/Hong Kong Time on Friday, August 30, 2013) to discuss the results
and answer questions from investors. Listeners may access the
call by dialing 1-800-860-2442 in the U.S., and 1-412-858-4600
internationally.
The call will also be available as a live, listen-only webcast
under the "Events and Presentations" page on the "Investor
Relations" section of the Company's website at
http://www.mzcan.com/us/GSI/irwebsite/index.php?mod=event.
Following the live webcast, an online archive will be available for
90 days.
About General Steel Holdings, Inc.
General Steel Holdings, Inc., headquartered in Beijing, China, produces a variety of steel
products including rebar, high-speed wire and spiral-weld pipe. The
Company has operations in China's
Shaanxi and Guangdong provinces, Inner Mongolia Autonomous
Region and Tianjin municipality
with seven million metric tons of crude steel production capacity
under management. For more information, please visit
www.gshi-steel.com.
To be added to the General Steel email list to receive Company
news, or to request a hard copy of the Company's Annual Report on
Form 10-K, please send your request to
generalsteel@asiabridgegroup.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
General Steel Holdings, Inc.
In China:
Jenny Wang
Tel: +86-10-5775-7691
Email: jenny.wang@gshi-steel.com
In the US:
Joyce Sung
Tel: +1-347-534-1435
Email: joyce.sung@gshi-steel.com
Asia Bridge Capital Limited
Carene Toh
Tel: +1-888-957-3362
Email: generalsteel@asiabridgegroup.com
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
AS OF JUNE 30,
2013 AND DECEMBER 31, 2012
|
(UNAUDITED)
|
(In
thousands)
|
|
|
|
|
June 30,
|
|
December
31,
|
ASSETS
|
2013
|
|
2012
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
67,871
|
|
$
|
46,467
|
|
Restricted
cash
|
|
380,670
|
|
|
323,420
|
|
Notes
receivable
|
|
213,644
|
|
|
145,502
|
|
Restricted
notes receivable
|
|
117,774
|
|
|
357,900
|
|
Loans
receivable - related parties
|
|
6,000
|
|
|
69,319
|
|
Accounts
receivable, net
|
|
42,273
|
|
|
6,695
|
|
Accounts
receivable - related parties
|
|
6,212
|
|
|
14,966
|
|
Other
receivables, net
|
|
53,525
|
|
|
8,407
|
|
Other
receivables - related parties
|
|
63,223
|
|
|
68,382
|
|
Inventories
|
|
160,155
|
|
|
212,671
|
|
Advances on
inventory purchase
|
|
57,909
|
|
|
79,715
|
|
Advances on
inventory purchase - related parties
|
|
2,391
|
|
|
46,416
|
|
Prepaid expense
and other
|
|
1,585
|
|
|
450
|
|
Prepaid
taxes
|
|
21,846
|
|
|
24,116
|
|
Short-term
investment
|
|
2,592
|
|
|
2,619
|
TOTAL CURRENT
ASSETS
|
|
1,197,670
|
|
|
1,407,045
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,214,558
|
|
|
1,167,836
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances on equipment
purchase
|
|
16,458
|
|
|
6,499
|
|
Long-term other
receivable
|
|
-
|
|
|
43,008
|
|
Investment in
unconsolidated entities
|
|
1,106
|
|
|
1,166
|
|
Long-term deferred
expense
|
|
764
|
|
|
1,062
|
|
Intangible assets,
net of accumulated amortization
|
|
24,058
|
|
|
24,066
|
TOTAL OTHER
ASSETS
|
|
42,386
|
|
|
75,801
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
2,454,614
|
|
$
|
2,650,682
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short term notes
payable
|
$
|
813,521
|
|
$
|
983,813
|
|
Accounts
payable
|
|
407,683
|
|
|
352,052
|
|
Accounts payable -
related parties
|
|
172,306
|
|
|
177,432
|
|
Short term loans -
bank
|
|
208,731
|
|
|
147,124
|
|
Short term loans -
others
|
|
151,245
|
|
|
147,323
|
|
Short term loans -
related parties
|
|
81,975
|
|
|
79,557
|
|
Current maturities of
long-term loans - related party
|
|
48,014
|
|
|
54,885
|
|
Other payables and
accrued liabilities
|
|
60,775
|
|
|
54,589
|
|
Other payable -
related parties
|
|
101,268
|
|
|
73,025
|
|
Customer
deposits
|
|
122,339
|
|
|
125,890
|
|
Customer deposits -
related parties
|
|
7,798
|
|
|
21,998
|
|
Deposit due to sales
representatives
|
|
30,800
|
|
|
33,870
|
|
Deposit due to sales
representatives - related parties
|
|
1,798
|
|
|
1,238
|
|
Taxes
payable
|
|
10,310
|
|
|
16,674
|
|
Deferred lease
income, current
|
|
2,164
|
|
|
2,120
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,220,727
|
|
|
2,271,590
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term loans
- related party
|
|
29,160
|
|
|
38,088
|
|
Long-term other
payable - related party
|
|
-
|
|
|
43,008
|
|
Deferred lease income,
noncurrent
|
|
75,558
|
|
|
75,079
|
|
Capital lease
obligations
|
|
347,290
|
|
|
330,099
|
|
Profit sharing
liability
|
|
278,788
|
|
|
328,827
|
|
Other
noncurrent liabilities
|
|
1,393
|
|
|
-
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
732,189
|
|
|
815,101
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
2,952,916
|
|
|
3,086,691
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
|
|
|
DEFICIENCY:
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value, 50,000,000
shares authorized, 3,092,899 shares issued and
outstanding as of June 30, 2013 and December 31,
2012
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000
shares authorized, 57,607,888 and 57,269,838
shares issued, 55,135,582 and 54,797,532 shares
outstanding as of June 30, 2013 and December 31,
2012, respectively
|
|
58
|
|
|
57
|
|
Treasury stock, at
cost, 2,472,306 shares as of June
30, 2013 and December 31, 2012
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
106,194
|
|
|
105,714
|
|
Statutory
reserves
|
|
6,204
|
|
|
6,076
|
|
Accumulated
deficits
|
|
(418,497)
|
|
|
(381,782)
|
|
Accumulated
other comprehensive income
|
|
4,201
|
|
|
10,185
|
|
TOTAL GENERAL
STEEL
HOLDINGS, INC.
DEFICIENCY
|
|
(306,036)
|
|
|
(263,946)
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(192,266)
|
|
|
(172,063)
|
|
TOTAL
DEFICIENCY
|
|
(498,302)
|
|
|
(436,009)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
DEFICIENCY
|
|
$
|
2,454,614
|
|
$
|
2,650,682
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE THREE AND
SIX MONTHS ENDED JUNE 30, 2013 AND 2012
|
(UNAUDITED)
|
(In thousands,
except per share data)
|
|
|
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
517,350
|
|
$
|
538,986
|
|
$
|
1,019,781
|
|
$
|
922,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES - RELATED
PARTIES
|
|
|
136,301
|
|
|
241,697
|
|
|
285,161
|
|
|
505,941
|
TOTAL SALES
|
|
|
653,651
|
|
|
780,683
|
|
|
1,304,942
|
|
|
1,428,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
540,271
|
|
|
516,277
|
|
|
1,038,897
|
|
|
898,033
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD -
RELATED PARTIES
|
|
|
148,916
|
|
|
236,362
|
|
|
297,514
|
|
|
497,047
|
TOTAL COST OF GOODS SOLD
|
|
|
689,187
|
|
|
752,639
|
|
|
1,336,411
|
|
|
1,395,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
(LOSS)
|
|
|
(35,536)
|
|
|
28,044
|
|
|
(31,469)
|
|
|
33,674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL
AND
ADMINISTRATIVE EXPENSES
|
|
|
(20,848)
|
|
|
(20,132)
|
|
|
(39,803)
|
|
|
(38,761)
|
CHANGE IN FAIR VALUE
OF PROFIT
SHARING LIABILITY
|
|
|
14,160
|
|
|
-
|
|
|
66,052
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
(42,224)
|
|
|
7,912
|
|
|
(5,220)
|
|
|
(5,087)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
3,383
|
|
|
3,146
|
|
|
5,882
|
|
|
8,702
|
Finance/interest expense
|
|
|
(25,882)
|
|
|
(53,948)
|
|
|
(55,852)
|
|
|
(102,314)
|
Change in fair value of derivative
liabilities
|
|
|
-
|
|
|
20
|
|
|
1
|
|
|
7
|
Gain (loss) on disposal of
equipment
|
|
|
(235)
|
|
|
3
|
|
|
96
|
|
|
(116)
|
Income from equity
investments
|
|
|
132
|
|
|
79
|
|
|
90
|
|
|
36
|
Foreign currency transaction gain
(loss)
|
|
|
98
|
|
|
(973)
|
|
|
126
|
|
|
(588)
|
Lease income
|
|
|
539
|
|
|
530
|
|
|
1,071
|
|
|
1,060
|
Other non-operating income
(expense), net
|
|
|
521
|
|
|
1,145
|
|
|
789
|
|
|
1,002
|
Other
expense, net
|
|
|
(21,444)
|
|
|
(49,998)
|
|
|
(47,857)
|
|
|
(92,211)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME
TAXES AND NONCONTROLLING
INTEREST
|
|
|
(63,668)
|
|
|
(42,086)
|
|
|
(53,077)
|
|
|
(97,298)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
105
|
|
|
43
|
|
|
176
|
|
|
410
|
Deferred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
169
|
Provision
for income taxes
|
|
|
105
|
|
|
43
|
|
|
176
|
|
|
579
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(63,773)
|
|
|
(42,129)
|
|
|
(53,253)
|
|
|
(97,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling
interest
|
|
|
(23,955)
|
|
|
(15,752)
|
|
|
(16,538)
|
|
|
(36,716)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS, INC.
|
|
$
|
(39,818)
|
|
$
|
(26,377)
|
|
$
|
(36,715)
|
|
$
|
(61,161)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(63,773)
|
|
$
|
(42,129)
|
|
$
|
(53,253)
|
|
$
|
(97,877)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency translation
adjustments
|
|
|
(7,210)
|
|
|
1,590
|
|
|
(9,736)
|
|
|
121
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(70,983)
|
|
|
(40,539)
|
|
|
(62,989)
|
|
|
(97,756)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to
noncontrolling interest
|
|
|
(26,745)
|
|
|
(15,393)
|
|
|
(20,290)
|
|
|
(36,833)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE
TO GENERAL STEEL HOLDINGS, INC.
|
|
$
|
(44,238)
|
|
$
|
(25,146)
|
|
$
|
(42,699)
|
|
$
|
(60,923)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF
SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
|
54,980
|
|
|
54,857
|
|
|
54,893
|
|
|
55,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
|
|
$
|
(0.72)
|
|
$
|
(0.48)
|
|
$
|
(0.67)
|
|
$
|
(1.11)
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
FOR THE SIX MONTHS
ENDED JUNE 30, 2013 AND 2012
|
(UNAUDITED)
|
(In
thousands)
|
|
|
|
Six months ended June
30,
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
|
$
|
(53,253)
|
|
$
|
(97,877)
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Depreciation,
amortization and depletion
|
|
|
43,067
|
|
|
41,329
|
Change in fair value
of derivative liabilities
|
|
|
(1)
|
|
|
(7)
|
(Gain) loss on
disposal of equipment
|
|
|
(96)
|
|
|
74
|
Provision for
doubtful accounts
|
|
|
(169)
|
|
|
5
|
Reservation of mine
maintenance fee
|
|
|
215
|
|
|
50
|
Stock issued for
services and compensation
|
|
|
480
|
|
|
394
|
Amortization of
deferred financing cost on capital lease
|
|
|
19,996
|
|
|
21,627
|
Income from equity
investments
|
|
|
(90)
|
|
|
(36)
|
Foreign currency
transaction gain
|
|
|
(126)
|
|
|
588
|
Deferred tax
assets
|
|
|
-
|
|
|
169
|
Deferred lease
income
|
|
|
(1,071)
|
|
|
(1,060)
|
Changes in fair value
of profit sharing liability
|
|
|
(66,052)
|
|
|
-
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
Notes
receivable
|
|
|
(64,424)
|
|
|
11,728
|
Accounts
receivable
|
|
|
(33,951)
|
|
|
3,789
|
Accounts receivable -
related parties
|
|
|
8,969
|
|
|
(66,664)
|
Other
receivables
|
|
|
(857)
|
|
|
2,403
|
Other receivables -
related parties
|
|
|
10,275
|
|
|
15,729
|
Inventories
|
|
|
38,014
|
|
|
(24,713)
|
Advances on inventory
purchases
|
|
|
23,215
|
|
|
(36,985)
|
Advances on inventory
purchases - related parties
|
|
|
(48,019)
|
|
|
(54,790)
|
Prepaid expense and
other
|
|
|
(1,115)
|
|
|
(181)
|
Long-term deferred
expense
|
|
|
317
|
|
|
131
|
Prepaid
taxes
|
|
|
2,742
|
|
|
1,760
|
Accounts
payable
|
|
|
43,122
|
|
|
(49,095)
|
Accounts payable -
related parties
|
|
|
55,227
|
|
|
54,720
|
Other payables and
accrued liabilities
|
|
|
5,002
|
|
|
4,254
|
Other payables -
related parties
|
|
|
(16,987)
|
|
|
110,061
|
Customer
deposits
|
|
|
(6,103)
|
|
|
(2,418)
|
Customer deposits -
related parties
|
|
|
(14,502)
|
|
|
(29,781)
|
Taxes
payable
|
|
|
(6,639)
|
|
|
(4,785)
|
Other noncurrent
liabilities
|
|
|
1,378
|
|
|
-
|
Net cash used in
operating activities
|
|
|
(61,436)
|
|
|
(99,581)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
|
(49,988)
|
|
|
(5,671)
|
Loans to related
parties
|
|
|
-
|
|
|
(69,303)
|
Cash proceeds from
(made to) short term investment
|
|
|
80
|
|
|
79
|
Cash proceeds from
sales of equipment
|
|
|
16
|
|
|
4
|
Equipment purchase
and intangible assets
|
|
|
(52,350)
|
|
|
(20,550)
|
Effect on cash due to
deconsolidating of a subsidiary
|
|
|
-
|
|
|
(2,975)
|
Net cash used in
investing activities
|
|
|
(102,242)
|
|
|
(98,416)
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Payments made for
treasury stock acquired
|
|
|
-
|
|
|
(1,404)
|
Notes receivable –
restricted
|
|
|
244,940
|
|
|
364,325
|
Borrowings on short
term notes payable
|
|
|
812,577
|
|
|
921,101
|
Payments on short
term notes payable
|
|
|
(1,001,301)
|
|
|
(1,134,080)
|
Borrowings on short
term loans - bank
|
|
|
141,484
|
|
|
184,477
|
Payments on short
term loans - bank
|
|
|
(83,433)
|
|
|
(241,919)
|
Borrowings on short
term loan - others
|
|
|
47,903
|
|
|
155,936
|
Payments on short
term loans - others
|
|
|
(47,055)
|
|
|
(162,212)
|
Borrowings on short
term loan - related parties
|
|
|
213,576
|
|
|
178,454
|
Payments on short
term loans - related parties
|
|
|
(124,059)
|
|
|
(138,320)
|
Deposits due to sales
representatives
|
|
|
(3,734)
|
|
|
7,515
|
Deposit due to sales
representatives - related parties
|
|
|
529
|
|
|
286
|
Payments on long-term
loans – related party
|
|
|
(17,544)
|
|
|
-
|
Net cash provided by
financing activities
|
|
|
183,883
|
|
|
134,159
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
|
1,199
|
|
|
2,226
|
INCREASE (DECREASE)
IN CASH
|
|
|
21,404
|
|
|
(61,612)
|
CASH, beginning of
period
|
|
|
46,467
|
|
|
120,016
|
CASH, end of
period
|
|
$
|
67,871
|
|
$
|
58,404
|
SOURCE General Steel Holdings, Inc.