BEIJING, Aug. 14, 2014 /PRNewswire/ -- General Steel
Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a
leading non-state-controlled steel producer in China, today announced its financial results
for the second quarter ended June 30,
2014.
Henry Yu, Chairman and Chief
Executive Officer of General Steel commented, "We are very proud
that our turn-around efforts are now driving measurable
improvements to our financials, as gross margin expanded to a
36-month high and EBITDA substantially improved to a positive
$33.6 million. These highlights
reflect the success we have had over the past year in lowering our
unit production cost and enhancing our operating efficiencies."
"During the second quarter, industry fundamentals significantly
improved, and we were able to hold firm on our pricing. We are
seeing a better demand-and-supply balance, and it is increasingly
more evident that the market dynamics and competitive landscape
will substantially improve in the coming months." Mr. Yu
concluded.
John Chen, Chief Financial
Officer of General Steel, commented, "This quarter we saw
contributions to profitability from our two major initiatives. Our
sourcing strategy lowered our raw material costs and, our upgraded
production lines and technical improvements lowered our unit costs.
We also turned around our operating cash flows to an inflow of
$56.1 million, providing us with
greater operating flexibility for the quarters ahead. Given our
solid execution and the improved market fundamentals, we anticipate
additional margin expansion and are confident that we will deliver
on our target EPS range of 8 to 12
cents for the second half of 2014."
Second Quarter 2014 Financial
Information
- Sales volume decreased by 5.7% year-over-year to approximately
1.31 million metric tons, compared with 1.38 million metric tons in
the second quarter of 2013.
- Sales totaled $588.0 million,
compared with $653.7 million in the
second quarter of 2013.
- Gross profit was $28.1 million on
gross margin of 4.8%, compared with a gross loss of $(35.5) million in the second quarter of
2013.
- Operating income totaled $6.3
million, compared with an operating loss of $(46.9) million in the second quarter of
2013.
- Net loss attributable to the Company reduced to approximately
$(11.0) million, or $(0.20) per diluted share, compared with a net
loss of $(39.8) million, or
$(0.72) per diluted share in the
second quarter of 2013.
- As of June 30, 2014, the Company
had cash and restricted cash of $492.9
million.
First Six Months 2014 Financial
Information
- Sales volume decreased by 2.4% year-over-year to approximately
2.62 million metric tons, compared with 2.69 million metric tons in
the first six months of 2013.
- Sales were $1.2 billion, compared
with $1.3 billion in the first six
months of 2013.
- Gross profit was $5.5 million on
gross margin of 0.5%, compared with a gross loss of $(31.5) million in the first six months of
2013.
- Operating loss was $(37.3)
million, compared with an operating loss of $(15.0) million in the first six months of
2013.
- Net loss attributable to the Company was $(54.6) million, or $(0.98) per diluted share, compared with a net
loss of $(36.7) million, or
$(0.67) per diluted share in the
first six months of 2013.
Second Quarter 2014 Financial and Operating Results
Total Sales
Total sales for the second quarter of 2014 decreased by 10.0%
year-over-year to $588.0 million,
compared with $653.7 million in the
second quarter of 2013. The year-over-year sales decreases were due
to decreases in both average selling price of rebar and sales
volume.
- Total sales volume in the second quarter of 2014 was 1.31
million metric tons, a decrease of 5.7% compared with 1.38 million
metric tons in the second quarter of 2013.
- The average selling price of rebar at Longmen Joint Venture in
the second quarter of 2014 decreased to approximately $450.0 per metric ton, down by 6.8% from
$482.7 per metric ton in the second
quarter of 2013.
Gross Profit/Loss
Gross profit for the second quarter of 2014 was $28.1 million, or 4.8% of total sales, as
compared with a gross loss of $(35.5)
million, or (5.4%) of total sales in the second quarter of
2013. The 1,020 basis points improvement in gross margin during the
quarter was mainly attributable to decreased unit costs of rebar
manufactured.
Operating Expenses and Operating Income/Loss
Selling, general and administrative expenses for the second
quarter of 2014 were $18.8 million, a
decrease of 9.6% from $20.8 million
in the second quarter of 2013. Driven by effective headcount
expense control, general and administrative expenses decreased to
$9.1 million in the second quarter of
2014, compared with $11.6 million in
the second quarter of 2013. Selling expenses was $9.7 million in the second quarter of 2014,
slighted increased from $9.3 million
in the same period of 2013. The increase in selling expenses was
mainly due to the increase in freight expenses as a result of the
PRC government's policy to increase freight train fees in early
2014.
Other operating loss from change in the fair value of profit
sharing liability during the second quarter of 2014 was
$(2.9) million, compared with a gain
of $9.5 million recognized in the
same period of last year. The loss recognized from change in the
fair value of profit sharing liability was primarily due to the
amortization of the present value discount.
Correspondingly, income from operations for the second quarter
of 2014 was $6.3 million, an
improvement of $53.2 million compared
with loss from operations of $(46.9)
million for the second quarter of 2013.
Finance Expense
Finance and interest expense in the second quarter of 2014 was
$26.6 million, of which, $5.7 million was the non-cash interest expense on
capital lease as compared with $5.1
million in the same period of 2013, and $20.9 million was the interest expense on bank
loans and discounted note receivables as compared with $16.1 million in the same period of 2013. The
increase in finance and interest expenses was mainly a result of
higher finance costs charged by banks and more of the early
redemption on note receivables.
Net Loss and Net Loss per Share
Net loss attributable to General Steel for the second quarter of
2014 narrowed $(11.0) million, or
$(0.20) per diluted share, based on
55.8 million weighted average shares outstanding. This compares to
a net loss of $(39.8) million, or
$(0.72) per diluted share, based on
55.0 million weighted average shares outstanding in the second
quarter of 2013.
First Six Months 2014 Financial and Operating Results
Total Sales
Total sales for the first six months of 2014 decreased by 9.4%
year-over-year to $1.2 billion,
compared with $1.3 billion in the
first six months of 2013. The year-over-year sales decreases were
due to decreases in both average selling price of rebar and sales
volume.
- Total sales volume in the first six months of 2014 was 2.62
million metric tons, a decrease of 2.4% compared with 2.69 million
metric tons in the first six months of 2013.
- The average selling price of rebar at Longmen Joint Venture in
the first six months of 2014 decreased to approximately
$450.4 per metric ton, down by 9.6%
from $498.4 per metric ton in the
first six months of 2013.
Gross Profit/Loss
Gross profit for the first six months of 2014 was $5.5 million, or 0.5% of total sales, as compared
with a gross loss of $(31.5) million,
or (2.4%) of total sales in the first six months of 2013.
Operating Expenses and Operating Loss
Selling, general and administrative expenses for the first six
months of 2014 were $39.9 million,
slightly increased from $39.8 million
in the first six months of 2013. General and administrative
expenses were $21.9 million, compared
with $22.5 million in the same period
of 2013. Selling expenses increased by 4.1% to $18.0 million, compared to $17.3 million in the same period of 2013.
Other operating loss from change in the fair value of profit
sharing liability during the first six months of 2014 was
$(3.0) million, compared with a gain
of $56.3 million in the same period
of last year.
Correspondingly, loss from operations for the first six months
of 2014 was $(37.3) million, compared
with loss from operations of $(15.0)
million for the first six months of 2013.
Finance Expense
Finance and interest expense in the first six months of 2014 was
$55.3 million, of which, $10.7 million was the non-cash interest expense
on capital lease as compared with $10.2
million in the same period of 2013, and $44.6 million was the interest expense on bank
loans and discounted note receivables as compared with $35.9 million in the first six months of
2013.
Net Loss and Net Loss per Share
Net loss attributable to General Steel for the first six months
of 2014 was $(54.6) million, or
$(0.98) per diluted share, based on
55.8 million weighted average shares outstanding. This compares to
a net loss of $(36.7) million, or
$(0.67) per diluted share, based on
54.9 million weighted average shares outstanding in the first six
months of 2013.
Balance Sheet
As of June 30, 2014, the Company
had cash and restricted cash of approximately $492.9 million, compared to $431.3 million as of December 31, 2013. The Company had an inventory
balance of $209.0 million as of
June 30, 2014, compared to
$212.9 million as of December 31, 2013.
Business Outlook
For the six months ending December 31,
2014, the Company reiterates that it currently projects:
- Sales to range from $1.3 billion to $1.4
billion, on sales volume of approximately 3 million metric
tons;
- Net income attributable to the Company to range from
$4.5 million to $6.5 million;
and
- EPS attributable to the Company to range from $0.08 to $0.12.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live
webcast at 8:00 a.m. EDT on
Thursday, August 14, 2014 (which
corresponds to 8:00 p.m. Beijing/Hong Kong Time on Thursday, August 14, 2014) to discuss the results
and answer questions from investors. Listeners may access the call
by dialing:
US Toll
Free:
|
1-866-250-8117
|
International
Toll:
|
1-412-317-6011
|
China Toll
|
400-120-3170
|
China Toll
Free
|
800-870-0210
|
Conference
ID:
|
83542725
|
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.corpasia.net/us/GSI/irwebsite/index.php?mod=event.
Following the live Webcast, an online archive of the Webcast 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 Annual Report on Form 10-K, filed with
the United States Securities and Exchange Commission.
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.
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)
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
ASSETS
|
|
|
2014
|
|
2013
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
44,749
|
|
$
|
31,967
|
|
Restricted
cash
|
|
448,106
|
|
|
399,333
|
|
Notes
receivable
|
|
36,948
|
|
|
60,054
|
|
Restricted
notes receivable
|
|
106,873
|
|
|
395,589
|
|
Loans
receivable - related parties
|
|
4,540
|
|
|
4,540
|
|
Accounts
receivable, net
|
|
5,277
|
|
|
4,078
|
|
Accounts
receivable - related parties
|
|
5,788
|
|
|
2,942
|
|
Other
receivables, net
|
|
54,804
|
|
|
54,716
|
|
Other
receivables - related parties
|
|
57,983
|
|
|
54,106
|
|
Inventories
|
|
208,971
|
|
|
212,921
|
|
Advances on
inventory purchase
|
|
58,503
|
|
|
44,897
|
|
Advances on
inventory purchase - related parties
|
|
119,279
|
|
|
83,003
|
|
Prepaid expense
and other
|
|
3,322
|
|
|
1,388
|
|
Prepaid
taxes
|
|
12,489
|
|
|
28,407
|
|
Short-term
investment
|
|
2,763
|
|
|
2,783
|
TOTAL CURRENT
ASSETS
|
|
|
1,170,395
|
|
|
1,380,724
|
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,253,351
|
|
|
1,271,907
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances on
equipment purchase
|
|
92,133
|
|
|
6,409
|
|
Investment in
unconsolidated entities
|
|
16,710
|
|
|
16,943
|
|
Long-term
deferred expense
|
|
|
|
552
|
|
|
668
|
|
Intangible
assets, net of accumulated amortization
|
|
23,333
|
|
|
23,707
|
TOTAL OTHER
ASSETS
|
|
|
132,728
|
|
|
47,727
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$
|
2,556,474
|
|
$
|
2,700,358
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short term
notes payable
|
$
|
875,479
|
|
$
|
1,017,830
|
|
Accounts
payable
|
|
418,468
|
|
|
434,979
|
|
Accounts
payable - related parties
|
|
262,103
|
|
|
235,692
|
|
Short term
loans - bank
|
|
201,673
|
|
|
301,917
|
|
Short term
loans - others
|
|
64,395
|
|
|
62,067
|
|
Short term
loans - related parties
|
|
153,996
|
|
|
126,693
|
|
Current
maturities of long-term loans - related party
Other payables
and accrued liabilities
|
|
62,374
48,343
|
|
|
53,013
45,653
|
|
Other payable -
related parties
|
|
98,209
|
|
|
94,079
|
|
Customer
deposits
|
|
136,288
|
|
|
87,860
|
|
Customer
deposits - related parties
|
|
142,888
|
|
|
64,881
|
|
Deposit due to
sales representatives
|
|
21,435
|
|
|
24,343
|
|
Deposit due to
sales representatives - related parties
|
|
1,658
|
|
|
1,997
|
|
Taxes
payable
|
|
4,181
|
|
|
4,628
|
|
Deferred lease
income, current
|
|
2,171
|
|
|
2,187
|
|
Capital lease
obligations, current
|
|
6,443
|
|
|
4,321
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,500,104
|
|
|
2,562,140
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term loans
- related party
|
|
9,750
|
|
|
19,644
|
|
Deferred lease
income, noncurrent
|
|
73,620
|
|
|
75,257
|
|
Capital lease
obligations, noncurrent
|
|
384,830
|
|
|
375,019
|
|
Profit sharing
liability at fair value
|
|
164,067
|
|
|
162,295
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
632,267
|
|
|
632,215
|
TOTAL
LIABILITIES
|
|
|
|
3,132,371
|
|
|
3,194,355
|
|
|
|
|
|
|
|
|
|
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, 2014 and December 31, 2013
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000 shares
authorized, 58,314,688 and 58,234,688 shares issued,
55,842,382 and 55,762,382 shares outstanding as of
June 30, 2014 and December 31, 2013, respectively
|
|
58
|
|
|
58
|
|
Treasury stock, at
cost, 2,472,306 shares as of June 30, 2014 and December 31,
2013
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
107,097
|
|
|
106,878
|
|
Statutory
reserves
|
|
6,408
|
|
|
6,243
|
|
Accumulated
deficits
|
|
(469,381)
|
|
|
(414,798)
|
|
Accumulated
other comprehensive income
|
|
3,016
|
|
|
729
|
|
TOTAL GENERAL STEEL
HOLDINGS, INC. DEFICIENCY
|
|
|
(356,998)
|
|
|
(305,086)
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(218,899)
|
|
|
(188,911)
|
|
TOTAL
DEFICIENCY
|
|
|
(575,897)
|
|
|
(493,997)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
|
|
$
|
2,556,474
|
|
$
|
2,700,358
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
FOR THE THREE AND SIX
MONTHS ENDED JUNE 30, 2014 AND 2013
|
(UNAUDITED)
|
(In thousands, except
per share data)
|
|
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES
|
|
$
|
508,637
|
|
$
|
517,350
|
|
$
|
1,020,642
|
|
$
|
1,019,781
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SALES - RELATED
PARTIES
|
|
|
79,376
|
|
|
136,301
|
|
|
161,582
|
|
|
285,161
|
TOTAL
SALES
|
|
|
588,013
|
|
|
653,651
|
|
|
1,182,224
|
|
|
1,304,942
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
482,011
|
|
|
540,271
|
|
|
1,012,755
|
|
|
1,038,897
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS SOLD -
RELATED PARTIES
|
|
|
77,908
|
|
|
148,916
|
|
|
163,936
|
|
|
297,514
|
TOTAL COST OF
GOODS SOLD
|
|
|
559,919
|
|
|
689,187
|
|
|
1,176,691
|
|
|
1,336,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
(LOSS)
|
|
|
28,094
|
|
|
(35,536)
|
|
|
5,533
|
|
|
(31,469)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
(18,849)
|
|
|
(20,848)
|
|
|
(39,902)
|
|
|
(39,803)
|
CHANGE IN FAIR VALUE
OF PROFIT SHARING LIABILITY
|
|
|
(2,920)
|
|
|
9,494
|
|
|
(2,969)
|
|
|
56,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
6,325
|
|
|
(46,890)
|
|
|
(37,338)
|
|
|
(14,999)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
4,066
|
|
|
3,383
|
|
|
7,258
|
|
|
5,882
|
Finance/interest expense
|
|
|
(26,619)
|
|
|
(21,216)
|
|
|
(55,314)
|
|
|
(46,073)
|
Gain (loss) on
disposal of equipment and intangible assets
|
|
|
(142)
|
|
|
(235)
|
|
|
(96)
|
|
|
96
|
Income from
equity investments
|
|
|
54
|
|
|
132
|
|
|
67
|
|
|
90
|
Foreign
currency transaction gain (loss)
|
|
|
(963)
|
|
|
98
|
|
|
(1,817)
|
|
|
126
|
Lease
income
|
|
|
542
|
|
|
539
|
|
|
1,088
|
|
|
1,071
|
Other
non-operating income (expense), net
|
|
|
302
|
|
|
521
|
|
|
126
|
|
|
790
|
Other expense, net
|
|
|
(22,760)
|
|
|
(16,778)
|
|
|
(48,688)
|
|
|
(38,078)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS BEFORE PROVISION
FOR INCOME TAXES AND NONCONTROLLING INTEREST
|
|
|
(16,435)
|
|
|
(63,668)
|
|
|
(86,026)
|
|
|
(53,077)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
107
|
|
|
105
|
|
|
112
|
|
|
176
|
Deferred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Provision for income taxes
|
|
|
107
|
|
|
105
|
|
|
112
|
|
|
176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
|
(16,542)
|
|
|
(63,773)
|
|
|
(86,138)
|
|
|
(53,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
(5,523)
|
|
|
(23,955)
|
|
|
(31,555)
|
|
|
(16,538)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO GENERAL STEEL HOLDINGS, INC.
|
|
$
|
(11,019)
|
|
$
|
(39,818)
|
|
$
|
(54,583)
|
|
$
|
(36,715)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS
|
|
$
|
(16,542)
|
|
$
|
(63,773)
|
|
$
|
(86,138)
|
|
$
|
(53,253)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
(929)
|
|
|
(7,210)
|
|
|
3,741
|
|
|
(9,736)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE
LOSS
|
|
|
(17,471)
|
|
|
(70,983)
|
|
|
(82,397)
|
|
|
(62,989)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive
loss attributable to noncontrolling interest
|
|
|
(5,875)
|
|
|
(26,745)
|
|
|
(30,101)
|
|
|
(20,290)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE LOSS
ATTRIBUTABLE TO GENERAL STEEL HOLDINGS, INC.
|
|
$
|
(11,596)
|
|
$
|
(44,238)
|
|
$
|
(52,296)
|
|
$
|
(42,699)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
55,842
|
|
|
54,980
|
|
|
55,828
|
|
|
54,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
(0.20)
|
|
$
|
(0.72)
|
|
$
|
(0.98)
|
|
$
|
(0.67)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
(In
thousands)
|
|
|
|
|
|
For the
Six months ended June
30,
|
|
|
|
|
|
2014
|
|
2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(86,138)
|
|
$
|
(53,253)
|
|
Adjustments to
reconcile net loss to cash provided by (used in) operating
activities:
|
|
|
|
|
|
Depreciation,
amortization and depletion
|
|
47,788
|
|
|
43,067
|
|
|
Change in fair value
of derivative liabilities-warrants
|
|
-
|
|
|
(1)
|
|
|
Change in fair value
of profit sharing liability
|
|
2,969
|
|
|
(56,273)
|
|
|
(Gain) loss on
disposal of equipment and intangible assets
|
|
96
|
|
|
(96)
|
|
|
Provision for
doubtful accounts
|
|
(250)
|
|
|
(169)
|
|
|
Reservation of mine
maintenance fee
|
|
278
|
|
|
215
|
|
|
Stock issued for
services and compensation
|
|
219
|
|
|
480
|
|
|
Amortization of
deferred financing cost on capital lease
|
|
9,253
|
|
|
10,217
|
|
|
Income from equity
investments
|
|
(67)
|
|
|
(90)
|
|
|
Foreign currency
transaction (gain) loss
|
|
1,817
|
|
|
(126)
|
|
|
Deferred lease
income
|
|
(1,088)
|
|
|
(1,071)
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
Notes
receivable
|
|
45,931
|
|
|
(64,424)
|
|
|
Accounts
receivable
|
|
(1,008)
|
|
|
(33,951)
|
|
|
Accounts receivable -
related parties
|
|
(2,875)
|
|
|
8,969
|
|
|
Other
receivables
|
|
(307)
|
|
|
(857)
|
|
|
Other receivables -
related parties
|
|
(4,275)
|
|
|
10,275
|
|
|
Inventories
|
|
1,286
|
|
|
38,014
|
|
|
Advances on inventory
purchases
|
|
(13,968)
|
|
|
23,215
|
|
|
Advances on inventory
purchases - related parties
|
|
(36,971)
|
|
|
(48,019)
|
|
|
Prepaid expense and
other
|
|
(1,947)
|
|
|
(1,115)
|
|
|
Long-term deferred
expense
|
|
111
|
|
|
317
|
|
|
Prepaid
taxes
|
|
15,747
|
|
|
2,742
|
|
|
Accounts
payable
|
|
(18,050)
|
|
|
43,122
|
|
|
Accounts payable -
related parties
|
|
28,204
|
|
|
55,227
|
|
|
Other payables and
accrued liabilities
|
|
2,637
|
|
|
5,002
|
|
|
Other payables -
related parties
|
|
4,824
|
|
|
(16,987)
|
|
|
Customer
deposits
|
|
49,187
|
|
|
(6,103)
|
|
|
Customer deposits -
related parties
|
|
78,667
|
|
|
(14,502)
|
|
|
Taxes
payable
|
|
(413)
|
|
|
(6,639)
|
|
|
Other noncurrent
liabilities
|
|
|
-
|
|
|
1,378
|
|
|
Net cash provided by (used
in) operating activities
|
|
121,657
|
|
|
(61,436)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
(51,820)
|
|
|
(49,988)
|
|
Cash proceeds from
short term investment
|
|
-
|
|
|
80
|
|
Cash proceeds from
sales of equipment and intangible assets
|
|
24
|
|
|
16
|
|
Equipment purchase
and intangible assets
|
|
(112,713)
|
|
|
(52,350)
|
|
|
Net cash used in investing
activities
|
|
(164,509)
|
|
|
(102,242)
|
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Restricted notes
receivable
|
|
286,485
|
|
|
244,940
|
|
Borrowings on short
term notes payable
|
|
900,202
|
|
|
812,577
|
|
Payments on short
term notes payable
|
|
(1,035,408)
|
|
|
(1,001,301)
|
|
Borrowings on short
term loans - bank
|
|
185,023
|
|
|
141,484
|
|
Payments on short
term loans - bank
|
|
(285,100)
|
|
|
(83,433)
|
|
Borrowings on short
term loan - others
|
|
19,949
|
|
|
47,903
|
|
Payments on short
term loans - others
|
|
(25,417)
|
|
|
(47,055)
|
|
Borrowings on short
term loan - related parties
|
|
32,576
|
|
|
213,576
|
|
Payments on short
term loans - related parties
|
|
(19,233)
|
|
|
(124,059)
|
|
Deposits due to sales
representatives
|
|
(2,736)
|
|
|
(3,734)
|
|
Deposit due to sales
representatives - related parties
|
|
(326)
|
|
|
529
|
|
Payments on long-term
loans - related party
|
|
-
|
|
|
(17,544)
|
|
|
Net cash provided by
financing activities
|
|
56,015
|
|
|
183,883
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
(381)
|
|
|
1,199
|
INCREASE IN
CASH
|
|
12,782
|
|
|
21,404
|
CASH, beginning of
period
|
|
31,967
|
|
|
46,467
|
CASH, end of
period
|
$
|
44,749
|
|
$
|
67,871
|
SOURCE General Steel Holdings, Inc.