BEIJING, Nov. 12, 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 third quarter ended September 30,
2013.
"I am delighted that we achieved positive gross and net margins
during the third quarter," said Henry
Yu, Chairman and Chief Executive Officer of General Steel.
"We also significantly enhanced our cost structure with the launch
of two additional continuous-rolling production lines, with one
commencing production in July and the other entering trial
production earlier this month."
"We also observed positive market momentum for China's steel industry. The average selling
prices of key steel products rebounded moderately during the third
quarter, driven by the robust demand from multi-sectors including
infrastructure construction and automotive sectors. In addition,
manufacturing activities in China
grew at its fastest pace in the most recent seven months, with the
Purchasing Managers Index reaching 50.9 this October, as the
government readies a series of key economic reforms. Given our
improving profitability, enhanced cost structure and positive
momentum in the industry, we feel optimistic about our business in
the quarters ahead."
John Chen, Chief Financial
Officer of General Steel, commented, "I'm very pleased with our
execution this third quarter. We generated a positive
quarterly operating cash inflow of $75
million and vastly improved profitability. Additionally, we
further cut finance expenses and enhanced our financing
flexibility, through better planning, budgeting and securing
additional working capital support through favorable payment terms
granted by our stakeholders. I believe we are at the
beginning of a sustainable business turn-around."
Third Quarter 2013 Financial
Information
- Sales decreased by 14.2% year-over-year to $610.1 million, from $711.4 million in the third quarter of 2012.
- Sales volume decreased by 10.0% year-over-year to approximately
1.3 million metric tons, compared with 1.4 million metric tons in
the third quarter of 2012.
- Gross profit was $8.2 million, or
1.3% of revenue, compared with a gross loss of $(13.6) million, or negative (1.9%) of revenue in
the third quarter of 2012.
- Operating income was $30.4
million, compared with an operating loss of $(36.4) million in the third quarter of
2012.
- Net income attributable to the Company was $3.8 million, or $0.07 per diluted share, compared with a net loss
of $(41.6) million, or $(0.76) per diluted share in the third quarter of
2012.
- Net operating cash inflow was $75.5
million, compared with $9.5
million in the third quarter of 2012.
- As of September 30, 2013, the
Company had cash and restricted cash of $467.9 million.
First Nine Months 2013 Financial
Information
- Sales decreased by 10.5% year-over-year to $1.9 billion, from $2.1
billion in the same period of 2012.
- Sales volume increased by 0.9% year-over-year to approximately
3.95 million metric tons, compared with 3.91 million metric tons in
the same period of 2012.
- Gross loss was $(23.2) million,
or negative (1.2%) of revenue, compared with a gross profit of
$20.1 million, or 0.9% of revenue in
the same period of 2012.
- Operating income was $25.2
million, compared with an operating loss of $(41.5) million in the same period of 2012.
- Net loss attributable to the Company narrowed to $(32.9) million, or $(0.60) per diluted share, compared with
$(102.8) million, or $(1.87) per diluted share in the same period of
2012.
- Net operating cash inflow was $14.0
million, compared with a net outflow of $(90.1) million in the same period of 2012.
Third Quarter 2013 Financial and Operating Results
Total Sales
Total sales for the third quarter of 2013 decreased by 14.2%
year-over-year to $610.1 million,
compared with $711.4 million in the
third quarter of 2012. The year-over-year revenue decreases were
due to less sales volume and a decrease in average selling price of
the products.
- Total sales volume in the third quarter of 2013 was 1.3 million
metric tons, a decrease of 10.0% compared with 1.4 million metric
tons in the third quarter of 2012.
- The average selling price of rebar decreased 6.1% to
approximately $489.6 per ton in the
third quarter of 2013 from approximately $521.2 per ton in the same period of 2012.
Gross Profit and Gross Margin
Gross profit for the quarter was $8.2
million, compared with a gross loss of $(13.6) million in the third quarter of 2012. The
gross margin increased to 1.3% of total sales in the third quarter
of 2013, compared with gross loss margin of negative (1.9%) of
total sales in the same period a year ago, which reflects our
production efficiency improvement and a slower decrease in ASP
compared with cost of rebar.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the third
quarter of 2013 decreased 13.7% to $19.7
million, compared to $22.8
million in the third quarter of 2012. General and
administrative expenses decreased to $12.4
million, compared with $14.1
million in the same period of 2012. The decrease in general
and administrative expense was mainly due to a decrease of
$1.7 million in bad debt expenses,
partially offset by an additional write-off of a prepaid special
fund of $0.6 million in the third
quarter of 2013, compared with the same period of last year.
Selling expenses decreased 16.5% to $7.3
million, compared to $8.7
million in the same period of 2012. The decrease in selling
expense was primarily attributable to savings in a special fund
related to the sales of the Company's products, which was no longer
imposed by the PRC tax authorities in 2013, while $1.6 million of the special fund was imposed in
the third quarter of 2012.
The Company recognized other operating income of $41.8 million due to change in the fair value of
profit sharing liability during the third quarter of 2013, compared
with $0 in the same period of last
year, which reflects a change in the estimated fair value of the
Company's profit sharing liability.
Correspondingly, income from operations for the third quarter of
2013 was $30.4 million, compared with
a loss from operations of $(36.4)
million in the third quarter of 2012.
Finance Expense
Finance and interest expense in the third quarter of 2013
decreased $11.1 million to
$25.5 million, of which, $7.8 million was the non-cash interest expense on
capital lease, as compared with $10.7
million in the same period of 2012, and $17.7 million was the interest expense on bank
loans and discounted note receivables as compared with $25.9 million in the third 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 third
quarter of 2013.
Net Income and Net Income per Share
Net income attributable to General Steel for the third quarter
of 2013 was $3.8 million, or
$0.07 per diluted share, based on
55.1 million weighted average shares outstanding. This compares to
a net loss of $(41.6) million, or
$(0.76) per diluted share, based on
54.5 million weighted average shares outstanding in the third
quarter of 2012.
First Nine Months 2013 Financial Results and Operating
Results
Total Sales
Total sales for the first nine months of 2013 decreased 10.5%
year-over-year to $1.9 billion,
compared with $2.1 billion in the
first nine months of 2012. The year-over-year revenue decreases
were due to a decrease in the average selling price.
- Total sales volume in the first nine months of 2013 was 3.95
million metric tons, an increase of 0.9% compared with 3.91 million
metric tons in the first nine months of 2012.
- The average selling price of rebar decreased 12.6% to
approximately $495.6 per ton in the
first nine months of 2013 from approximately $566.8 per ton in the same period of 2012.
Gross Profit and Gross Margin
Due to a steeper decrease in average selling price in the first
half of 2013, gross loss for the first nine months of 2013 was
$(23.2) million, or (1.2%) of total
sales, compared with a gross profit of $20.1
million, or 0.9% of total sale in the first nine months of
2012.
Operating Expenses and Operating Income
Selling, general and administrative expenses for the first nine
months of 2013 decreased 3.4% to $59.5
million, compared to $61.5
million in the first nine months of 2012. General and
administrative expenses increased slightly to $34.9 million, compared with $33.7 million in the same period of 2012. Selling
expenses decreased 11.9% to $24.6
million, compared to $27.9
million, which included a $4.5
million special fund imposed in the same period of 2012.
The Company recognized other operating income of $107.9 million due to change in the fair value of
profit sharing liability during the first nine months of 2013,
compared with $0 in the same period
of last year.
Correspondingly, income from operations for the first nine
months of 2013 was $25.2 million,
compared with a loss from operations of $(41.5) million in the first nine months of
2012.
Finance Expense
Finance and interest expense in the first nine months of 2013
was $81.4 million, of which,
$27.8 million was the non-cash
interest expense on capital lease as compared with $32.4 million in the same period of 2012, and
$53.6 million was the interest
expense on bank loans and discounted note receivables, as compared
with $106.6 million in the first nine
months of 2012.
Net Income and Net Income per Share
Net loss attributable to General Steel for the first nine months
of 2013 was $(32.9) million, or
$(0.60) per diluted share, based on
55.0 million weighted average shares outstanding. This compares to
a net loss of $(102.8) million, or
$(1.87) per diluted share, based on
55.0 million weighted average shares outstanding in the first nine
months of 2012.
Balance Sheet
As of September 30, 2013, the
Company had cash and restricted cash of approximately $467.9 million, compared to $369.9 million as of December 31, 2012. The Company had an inventory
balance of approximately $177.4
million as of September 30,
2013, compared to $212.7
million as of December 31,
2012.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live
webcast at 8:00 a.m. EST on
Tuesday, November 12, 2013 (which
corresponds to 9:00 p.m. Beijing/Hong Kong Time on Tuesday, November 12, 2013) to discuss the
results and answer questions from investors. Listeners may access
the call by dialing 1-877-870-4263 in the U.S., and 1-412-317-0790
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
|
|
(UNAUDITED)
(In
thousands)
|
|
|
|
|
September
30,
|
|
December
31,
|
ASSETS
|
|
|
2013
|
|
2012
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
62,091
|
|
$
|
46,467
|
|
Restricted
cash
|
|
405,781
|
|
|
323,420
|
|
Notes
receivable
|
|
116,900
|
|
|
145,502
|
|
Restricted
notes receivable
|
|
357,250
|
|
|
357,900
|
|
Loans
receivable - related parties
|
|
4,540
|
|
|
69,319
|
|
Accounts
receivable, net
|
|
8,577
|
|
|
6,695
|
|
Accounts
receivable - related parties
|
|
3,252
|
|
|
14,966
|
|
Other
receivables, net
|
|
56,494
|
|
|
8,407
|
|
Other
receivables - related parties
|
|
51,501
|
|
|
68,382
|
|
Inventories
|
|
177,383
|
|
|
212,671
|
|
Advances on
inventory purchase
|
|
79,855
|
|
|
79,715
|
|
Advances on
inventory purchase - related parties
|
|
29,667
|
|
|
46,416
|
|
Prepaid expense
and other
|
|
1,490
|
|
|
450
|
|
Prepaid
taxes
|
|
16,415
|
|
|
24,116
|
|
Short-term
investment
|
|
2,771
|
|
|
2,619
|
TOTAL CURRENT
ASSETS
|
|
|
1,373,967
|
|
|
1,407,045
|
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,250,542
|
|
|
1,167,836
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances on
equipment purchase
|
|
21,715
|
|
|
6,499
|
|
Long-term other
receivable
|
|
-
|
|
|
43,008
|
|
Investment in
unconsolidated entities
|
|
1,161
|
|
|
1,166
|
|
Long-term
deferred expense
|
|
713
|
|
|
1,062
|
|
Intangible
assets, net of accumulated amortization
|
|
23,928
|
|
|
24,066
|
TOTAL OTHER
ASSETS
|
|
47,517
|
|
|
75,801
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
|
2,672,026
|
|
$
|
2,650,682
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short term
notes payable
|
$
|
987,988
|
|
$
|
983,813
|
|
Accounts
payable
|
|
495,488
|
|
|
352,052
|
|
Accounts
payable - related parties
|
|
172,259
|
|
|
177,432
|
|
Short term
loans - bank
|
|
254,929
|
|
|
147,124
|
|
Short term
loans - others
|
|
130,170
|
|
|
147,323
|
|
Short term
loans - related parties
|
|
48,889
|
|
|
79,557
|
|
Current
maturities of long-term loans - related party
|
|
47,896
|
|
|
54,885
|
|
Other payables
and accrued liabilities
|
|
52,272
|
|
|
54,589
|
|
Other payable -
related parties
|
|
106,153
|
|
|
73,025
|
|
Customer
deposits
|
|
95,695
|
|
|
125,890
|
|
Customer
deposits - related parties
|
|
14,512
|
|
|
21,998
|
|
Deposit due to
sales representatives
|
|
28,184
|
|
|
33,870
|
|
Deposit due to
sales representatives - related parties
|
|
1,809
|
|
|
1,238
|
|
Taxes
payable
|
|
9,716
|
|
|
16,674
|
|
Deferred lease
income, current
|
|
2,178
|
|
|
2,120
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,448,138
|
|
|
2,271,590
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term loans
- related party
|
|
24,450
|
|
|
38,088
|
|
Long-term other
payable - related party
|
|
-
|
|
|
43,008
|
|
Deferred lease
income, noncurrent
|
|
75,480
|
|
|
75,079
|
|
Capital lease
obligations
|
|
354,576
|
|
|
330,099
|
|
Profit sharing
liability
|
|
241,090
|
|
|
328,827
|
|
Other
noncurrent liabilities
|
|
1,402
|
|
|
-
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
696,998
|
|
|
815,101
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
3,145,136
|
|
|
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 September 30, 2013 and
December 31, 2012
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000
shares authorized, 57,771,038 and 57,269,838
shares issued, 55,298,732 and 54,797,532
shares
outstanding as of September 30, 2013 and
December 31, 2012, respectively
|
|
58
|
|
|
57
|
|
Treasury stock, at
cost, 2,472,306 shares as of
September 30, 2013 and December 31,
2012
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
106,405
|
|
|
105,714
|
|
Statutory
reserves
|
|
6,263
|
|
|
6,076
|
|
Accumulated
deficits
|
|
(414,696)
|
|
|
(381,782)
|
|
Accumulated
other comprehensive income
|
|
2,471
|
|
|
10,185
|
|
TOTAL GENERAL
STEEL
HOLDINGS, INC. DEFICIENCY
|
|
(303,695)
|
|
|
(263,946)
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(169,415)
|
|
|
(172,063)
|
|
TOTAL
DEFICIENCY
|
|
(473,110)
|
|
|
(436,009)
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
$
|
2,672,026
|
|
$
|
2,650,682
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
|
(UNAUDITED)
|
(In thousands,
except per share data)
|
|
|
|
For the
Three months ended
September 30,
|
|
For the
Nine months ended
September 30,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
514,549
|
|
$
|
518,542
|
|
$
|
1,534,330
|
|
$
|
1,441,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES - RELATED
PARTIES
|
|
|
95,546
|
|
|
192,883
|
|
|
380,707
|
|
|
698,824
|
TOTAL SALES
|
|
|
610,095
|
|
|
711,425
|
|
|
1,915,037
|
|
|
2,140,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
511,932
|
|
|
528,586
|
|
|
1,550,829
|
|
|
1,426,589
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD -
RELATED PARTIES
|
|
|
89,932
|
|
|
196,435
|
|
|
387,446
|
|
|
693,482
|
TOTAL COST OF
GOODS SOLD
|
|
|
601,864
|
|
|
725,021
|
|
|
1,938,275
|
|
|
2,120,071
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
(LOSS)
|
|
|
8,231
|
|
|
(13,596)
|
|
|
(23,238)
|
|
|
20,078
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL
AND
ADMINISTRATIVE EXPENSES
|
|
|
(19,661)
|
|
|
(22,787)
|
|
|
(59,464)
|
|
|
(61,548)
|
CHANGE IN FAIR VALUE
OF PROFIT
SHARING LIABILITY
|
|
|
41,825
|
|
|
-
|
|
|
107,877
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
30,395
|
|
|
(36,383)
|
|
|
25,175
|
|
|
(41,470)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
2,835
|
|
|
4,337
|
|
|
8,657
|
|
|
13,039
|
Finance/interest expense
|
|
|
(25,503)
|
|
|
(36,615)
|
|
|
(81,355)
|
|
|
(138,929)
|
Change in fair
value of derivative liabilities
|
|
|
-
|
|
|
(55)
|
|
|
1
|
|
|
(48)
|
Gain on
disposal of equipment
|
|
|
17
|
|
|
293
|
|
|
113
|
|
|
177
|
Income from
equity investments
|
|
|
47
|
|
|
44
|
|
|
137
|
|
|
80
|
Foreign
currency transaction gain (loss)
|
|
|
322
|
|
|
(581)
|
|
|
448
|
|
|
(1,169)
|
Lease
income
|
|
|
542
|
|
|
528
|
|
|
1,613
|
|
|
1,588
|
Other
non-operating income (expense), net
|
|
|
770
|
|
|
2,314
|
|
|
1,559
|
|
|
3,316
|
Other expense, net
|
|
|
(20,970)
|
|
|
(29,735)
|
|
|
(68,827)
|
|
|
(121,946)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) BEFORE
PROVISION FOR
INCOME TAXES AND NONCONTROLLING
INTEREST
|
|
|
9,425
|
|
|
(66,118)
|
|
|
(43,652)
|
|
|
(163,416)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
25
|
|
|
100
|
|
|
201
|
|
|
510
|
Deferred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
169
|
Provision for income taxes
|
|
|
25
|
|
|
100
|
|
|
201
|
|
|
679
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
9,400
|
|
|
(66,218)
|
|
|
(43,853)
|
|
|
(164,095)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to
noncontrolling interest
|
|
|
5,599
|
|
|
(24,620)
|
|
|
(10,939)
|
|
|
(61,336)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS)
ATTRIBUTABLE TO
GENERAL STEEL HOLDINGS, INC.
|
|
$
|
3,801
|
|
$
|
(41,598)
|
|
$
|
(32,914)
|
|
$
|
(102,759)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
|
9,400
|
|
$
|
(66,218)
|
|
$
|
(43,853)
|
|
$
|
(164,095)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(2,547)
|
|
|
(698)
|
|
|
(12,283)
|
|
|
(577)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
|
6,853
|
|
|
(66,916)
|
|
|
(56,136)
|
|
|
(164,672)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
income (loss) attributable to
noncontrolling interest
|
|
|
4,782
|
|
|
(24,888)
|
|
|
(15,508)
|
|
|
(61,721)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS)
ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
|
$
|
2,071
|
|
$
|
(42,028)
|
|
$
|
(40,628)
|
|
$
|
(102,951)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
55,141
|
|
|
54,466
|
|
|
54,976
|
|
|
54,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS)
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.07
|
|
$
|
(0.76)
|
|
$
|
(0.60)
|
|
$
|
(1.87)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
(In
thousands)
|
|
|
|
|
|
For the
Nine months ended
September 30,
|
|
|
|
|
|
2013
|
|
2012
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net loss
|
$
|
(43,853)
|
|
$
|
(164,095)
|
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation,
amortization and depletion
|
|
64,955
|
|
|
62,538
|
|
|
Change in fair value
of derivative liabilities
|
|
(1)
|
|
|
48
|
|
|
Gain on disposal of
equipment
|
|
(113)
|
|
|
(177)
|
|
|
Provision for
doubtful accounts
|
|
(251)
|
|
|
2,316
|
|
|
Reservation of mine
maintenance fee
|
|
315
|
|
|
3
|
|
|
Stock issued for
services and compensation
|
|
692
|
|
|
679
|
|
|
Amortization of
deferred financing cost on capital lease
|
|
27,778
|
|
|
32,363
|
|
|
Income from equity
investments
|
|
(137)
|
|
|
(80)
|
|
|
Foreign currency
transaction gain
|
|
(448)
|
|
|
1,169
|
|
|
Deferred tax
assets
|
|
-
|
|
|
169
|
|
|
Deferred lease
income
|
|
(1,613)
|
|
|
(1,588)
|
|
|
Changes in fair value
of profit sharing liability
|
|
(107,877)
|
|
|
-
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Notes
receivable
|
|
32,138
|
|
|
(99,337)
|
|
|
Accounts
receivable
|
|
(483)
|
|
|
5,429
|
|
|
Accounts receivable -
related parties
|
|
11,968
|
|
|
(7,607)
|
|
|
Other
receivables
|
|
(3,466)
|
|
|
(5,460)
|
|
|
Other receivables -
related parties
|
|
(55,744)
|
|
|
4,784
|
|
|
Inventories
|
|
4,191
|
|
|
73,024
|
|
|
Advances on inventory
purchases
|
|
1,996
|
|
|
(23,365)
|
|
|
Advances on inventory
purchases - related parties
|
|
(27,882)
|
|
|
(88,412)
|
|
|
Prepaid expense and
other
|
|
(1,016)
|
|
|
(183)
|
|
|
Long-term deferred
expense
|
|
373
|
|
|
119
|
|
|
Prepaid
taxes
|
|
8,250
|
|
|
4,168
|
|
|
Accounts
payable
|
|
113,592
|
|
|
(48,059)
|
|
|
Accounts payable -
related parties
|
|
54,364
|
|
|
31,353
|
|
|
Other payables and
accrued liabilities
|
|
(3,742)
|
|
|
34,286
|
|
|
Other payables -
related parties
|
|
(12,844)
|
|
|
95,746
|
|
|
Customer
deposits
|
|
(33,185)
|
|
|
(9,490)
|
|
|
Customer deposits -
related parties
|
|
(7,981)
|
|
|
14,740
|
|
|
Taxes
payable
|
|
(7,317)
|
|
|
(5,195)
|
|
|
Other noncurrent
liabilities
|
|
1,384
|
|
|
-
|
|
|
Net cash provided by
(used in) operating activities
|
|
14,043
|
|
|
(90,114)
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
(72,676)
|
|
|
(35,094)
|
|
Loans to related
parties
|
|
1,460
|
|
|
(69,247)
|
|
Cash proceeds from
(made to) short term investment
|
|
(80)
|
|
|
40
|
|
Cash proceeds from
sales of equipment
|
|
16
|
|
|
19
|
|
Equipment purchase
and intangible assets
|
|
(75,326)
|
|
|
(15,909)
|
|
Effect on cash due to
deconsolidating of a subsidiary
|
|
-
|
|
|
(2,972)
|
|
|
Net cash used in investing activities
|
|
(146,606)
|
|
|
(123,163)
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Capital contributed
by noncontrolling interest
|
|
18,028
|
|
|
-
|
|
Payments made for
treasury stock acquired
|
|
-
|
|
|
(1,404)
|
|
Notes receivable -
restricted
|
|
10,218
|
|
|
521,866
|
|
Borrowings on short
term notes payable
|
|
1,348,631
|
|
|
1,382,976
|
|
Payments on short
term notes payable
|
|
(1,370,832)
|
|
|
(1,637,570)
|
|
Borrowings on short
term loans - bank
|
|
258,357
|
|
|
237,535
|
|
Payments on short
term loans - bank
|
|
(155,390)
|
|
|
(355,008)
|
|
Borrowings on short
term loan - others
|
|
148,678
|
|
|
160,554
|
|
Payments on short
term loans - others
|
|
(169,558)
|
|
|
(193,964)
|
|
Borrowings on short
term loan - related parties
|
|
362,202
|
|
|
269,362
|
|
Payments on short
term loans - related parties
|
|
(274,718)
|
|
|
(221,134)
|
|
Deposits due to sales
representatives
|
|
(6,521)
|
|
|
11,939
|
|
Deposit due to sales
representatives - related parties
|
|
531
|
|
|
285
|
|
Payments on long-term
loans - related party
|
|
(22,856)
|
|
|
-
|
|
|
Net
cash provided by financing activities
|
|
146,770
|
|
|
175,437
|
|
|
|
|
|
|
|
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
1,417
|
|
|
1,426
|
INCREASE (DECREASE)
IN CASH
|
|
15,624
|
|
|
(36,414)
|
CASH, beginning of
period
|
|
46,467
|
|
|
120,016
|
CASH, end of
period
|
$
|
62,091
|
|
$
|
83,602
|
SOURCE General Steel Holdings, Inc.