BEIJING, March 31, 2015 /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 fourth quarter and full-year ended December 31, 2014.
Henry Yu, Chairman and Chief
Executive Officer of General Steel commented, "During the fourth
quarter of 2014, particularly in December, China's steel mills accelerated
production after the required
shut-down during the APEC summit, which
caused rapid deterioration in the average selling prices of
steel products. We believe the near-term challenges for the steel
sector will likely linger, and as such, we are strategically
accelerating our business transformation."
"The formation of our RFID joint venture in February 2015, and the joint venture for new
petroleum storage facility under-preparation in Maoming City are
excellent initial steps in our transformation into the
Internet-of-Things and Logistics sectors. We are encouraged by our
progress to date, and we anticipate these new joint ventures will
drive strong synergies and efficiency enhancements for the whole
organization."
John Chen, Chief Financial
Officer of General Steel, commented, "Despite the persistently
tough steel industry fundamentals, we continued to receive support
from our SOE partners and local governments with favorable payment
and credit terms that helped us to generate $95.2 million in operating cash flow during the
fourth quarter. As we transform our organization, we will
proactively review our strategy and asset portfolio and seek to
restructure low-efficient, non-core
assets, as well as idle land
resources to unlock hidden fair value. We aim to transform into a
leaner and fitter organization with better profitability, and based
on the rapid progress of our recently-formed joint ventures, we
believe we are well on our way."
Fourth Quarter 2014 Financial
Information
- Sales volume increased by 17.1% year-over-year to approximately
1.35 million metric tons, compared with 1.15 million metric tons in
the fourth quarter of 2013.
- Sales totaled $544.4 million,
compared with $548.7 million in the
fourth quarter of 2013.
- Gross loss was $(34.3) million,
or (6.3%) of total sales, compared with $(32.7) million, or (6.0%) of total sales in the
fourth quarter of 2013.
- Income from operations totaled $22.7
million, compared with $21.7
million in the fourth quarter of 2013.
- Net income attributable to the Company was $9.4 million, or $0.16 per diluted share, compared with a net loss
of $102,000, or $(0.002) per share in the fourth quarter of
2013.
- As of December 31, 2014, the
Company had cash and restricted cash of $367.3 million.
Full Year 2014 Financial Information
- Sales volume increased by 6.3% year-over-year to approximately
5.42 million metric tons, compared with 5.10 million metric tons in
2013.
- Sales were $2.3 billion, compared
with $2.5 billion in 2013.
- Gross loss narrowed to $(19.2)
million, or (0.8%) of total sales, compared with a gross
loss of $(55.9) million, or (2.3%) of
total sales in 2013.
- Loss from operations was $(6.7)
million, compared with income from operations of
$34.4 million in 2013.
- Net loss attributable to the Company was $(48.7) million, or $(0.86) per diluted share, compared with
$(33.0) million, or $(0.60) per diluted share in 2013.
Fourth Quarter 2014 Financial and Operating Results
Total Sales
Total sales for the fourth quarter of 2014 decreased slightly by
0.8% year-over-year to $544.4
million, compared with $548.7
million in the fourth quarter of 2013. The year-over-year
sales decrease was primarily due to a decrease in in average
selling price of rebar, partially offset by increased total sales
volume.
- Total sales volume in the fourth quarter of 2014 was 1.35
million metric tons, an increase of 17.1% compared with 1.15
million metric tons in the fourth quarter of 2013.
- The average selling price of rebar at Longmen Joint Venture in
the fourth quarter of 2014 decreased to approximately $403.5 per metric ton, down by 14.9% from
$474.3 per metric ton in the fourth
quarter of 2013.
Gross Loss
Gross loss for the fourth quarter of 2014 was $(34.3) million, or (6.3)% of total sales, as
compared with gross loss of $(32.7)
million, or (6.0)% of total sales in the fourth quarter of
2013. The decrease in gross margin was mainly due to a steeper
decrease in average selling price of rebar, compared with the
decrease in unit cost of manufactured rebar, as well as higher
allowance for inventory during the fourth quarter of 2014.
Operating Expenses and Income from Operations
Selling, general and administrative expenses for the fourth
quarter of 2014 were $22.2 million, a
decrease of 10.3% from $24.8 million
in the fourth quarter of 2013. Driven by effective headcount
expense control, general and administrative expenses decreased to
$12.8 million in the fourth quarter
of 2014, compared with $15.3 million
in the fourth quarter of 2013. Selling expenses were $9.4 million in the fourth quarter of 2014,
compared with from $9.5 million in
the same period of 2013.
Other operating income from a change in the fair value of profit
sharing liability during the fourth quarter of 2014 was
$79.3 million, compared with
$79.1 million recognized in the same
period of last year.
Correspondingly, income from operations for the fourth quarter
of 2014 increased slightly to $22.7
million, compared with $21,7
million for the fourth quarter of 2013.
Finance Expense
Finance and interest expense in the fourth quarter of 2014 was
$21.9 million, of which, $5.3 million was the non-cash interest expense on
capital lease, as compared with $5.5
million in the same period of 2013, and $16.6 million was the interest expense on bank
loans and discounted note receivables, as compared with
$17.5 million in the same period of
2013.
Net Income/Loss and Net Income/Loss per Share
Net income attributable to General Steel for the fourth quarter
of 2014 was $9.4 million, or
$0.16 per diluted share, based on
59.8 million weighted average shares outstanding. This compares to
a net loss attributable to General Steel of $(102,000), or $(0.002) per share, based on 55.6 million
weighted average shares outstanding in the fourth quarter of 2013.
The increase in shares count of weighted average shares outstanding
was primarily due to the issuance of 5 million Common Stock
pursuant to the $7.5 million Private
Placement the Company closed in October
2014.
Full Year 2014 Financial and Operating Results
Total Sales
Total sales for the year 2014 decreased by 7.1% year-over-year
to $2.3 billion, compared with
$2.5 billion in 2013. The
year-over-year sales decrease was primarily due to a decrease in in
average selling price of rebar, partially offset by increased total
sales volume.
- Total sales volume in year 2014 was 5.42 million metric tons,
an increase of 6.3% compared with 5.10 million metric tons in
2013.
- The average selling price of rebar at Longmen Joint Venture in
2014 decreased to approximately $422.2 per metric ton, down by 14.0% from
$490.7 per metric ton in 2013.
Gross Loss
Gross loss for the year 2014 was $(19.2)
million, or (0.8)% of total sales, as compared with a gross
loss of $(55.9) million, or (2.3%) of
total sales in 2013. The improvement in annual gross margin was
mainly attributable to steeper decrease in unit costs of rebar
manufactured than the average selling price of rebar.
Operating Expenses and Loss/Income from Operations
Selling, general and administrative expenses for the year 2014
were $78.6 million, a decreased of
6.7% from $84.2 million in 2013.
General and administrative expenses decreased to $44.5 million, compared with $50.1 million in the same period of 2013. Selling
expenses totaled $34.1 million,
unchanged from the same period of 2013.
Other operating income from a change in the fair value of profit
sharing liability in 2014 was $91.0
million, compared with $174.6
million in the same period of last year.
Correspondingly, loss from operations for the year 2014 was
$(6.7) million, compared with income
from operations of $34.4 million in
2013.
Finance Expense
Finance and interest expense for the year 2014 was $96.7 million, of which, $21.3 million was the non-cash interest expense
on capital lease, as compared with $20.8
million in the same period of 2013, and $75.4 million was the interest expense on bank
loans and discounted note receivables, as compared with
$71.1 million in 2013.
Net Loss and Net Loss per Share
Net loss attributable to General Steel for the year 2014 was
$(48.7) million, or $(0.86) per diluted share, based on 56.8 million
weighted average shares outstanding. This compares to a net loss
attributable to General Steel of $(33.0)
million, or $(0.60) per
diluted share, based on 55.1 million weighted average shares
outstanding in 2013.
Balance Sheet
As of December 31, 2014, the
Company had cash and restricted cash of approximately $367.3 million, compared to $431.3 million as of December 31, 2013. The Company had an inventory
balance of $156.3 million as of
December 31, 2014, compared to
$212.9 million as of December 31, 2013.
Conference Call and Webcast:
General Steel will hold a corresponding conference call and live
webcast at 8:00 a.m. EDT on
Tuesday, March 31, 2015 (which
corresponds to 8:00 p.m. Beijing/Hong Kong Time on Tuesday, March 31, 2015) to discuss the results
and answer questions from investors. Listeners may access the call
by dialing:
US Toll
Free:
|
1-888-346-8982
|
International
Toll:
|
1-412-902-4272
|
China Toll
Free:
|
400-120-1203
|
Hong Kong Toll
Free:
|
800-905-945
|
Conference
ID:
|
General Steel
Holdings
|
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.
A replay of the conference call may be accessed through
April 4, 2015 by dialing:
US Toll
Free:
|
1-877-344-7529
|
International
Toll:
|
1-412-317-0088
|
Access
Code:
|
10062338
|
About General Steel Holdings, Inc.
General Steel Holdings, Inc. is a leading non-state-owned steel
maker headquartered in Beijing,
China. With seven million metric tons of crude steel
production capacity under management and operations in Tianjin municipality and China's Shaanxi and Guangdong provinces, the Company produces a
variety of steel products including rebar and high-speed wire.
In addition to its steel business, the Company also designs,
manufactures, and integrates radio frequency identification
("RFID") systems. The Company's RFID technology provides real-time
data on supplies, inventory, and goods, thereby greatly enhancing
its customers' administration and planning processes, as well as,
asset tracking and supply chain 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
investor.relations@gshi-steel.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, including those disclosed in the Company's most recent
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
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
(In
thousands)
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
ASSETS
|
|
|
2014
|
|
2013
|
CURRENT
ASSETS:
|
|
|
|
|
|
|
Cash
|
$
|
11,641
|
|
$
|
31,967
|
|
Restricted
cash
|
|
355,685
|
|
|
399,333
|
|
Notes
receivable
|
|
10,290
|
|
|
60,054
|
|
Restricted
notes receivable
|
|
111,801
|
|
|
395,589
|
|
Loan
receivable
|
|
36,001
|
|
|
-
|
|
Loans
receivable - related parties
|
|
34,713
|
|
|
4,540
|
|
Accounts
receivable, net
|
|
9,321
|
|
|
4,078
|
|
Accounts
receivable - related parties
|
|
8,498
|
|
|
2,942
|
|
Other
receivables, net
|
|
63,746
|
|
|
54,716
|
|
Other
receivables - related parties
|
|
39,670
|
|
|
54,106
|
|
Inventories
|
|
156,327
|
|
|
212,921
|
|
Advances on
inventory purchase
|
|
73,819
|
|
|
44,897
|
|
Advances on
inventory purchase - related parties
|
|
45,617
|
|
|
83,003
|
|
Prepaid expense
and other
|
|
4,803
|
|
|
1,388
|
|
Prepaid
taxes
|
|
5,789
|
|
|
28,407
|
|
Short-term
investment
|
|
2,688
|
|
|
2,783
|
TOTAL CURRENT
ASSETS
|
|
|
970,409
|
|
|
1,380,724
|
|
|
|
|
|
|
|
|
|
PLANT AND
EQUIPMENT, net
|
|
1,543,136
|
|
|
1,271,907
|
|
|
|
|
|
|
|
|
|
OTHER
ASSETS:
|
|
|
|
|
|
|
Advances on
equipment purchase
|
|
11,438
|
|
|
6,409
|
|
Investment in
unconsolidated entities
|
|
16,823
|
|
|
16,943
|
|
Long-term
deferred expense
|
|
|
|
458
|
|
|
668
|
|
Intangible
assets, net of accumulated amortization
|
|
22,960
|
|
|
23,707
|
TOTAL OTHER
ASSETS
|
|
|
51,679
|
|
|
47,727
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
$
|
2,565,224
|
|
$
|
2,700,358
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
DEFICIENCY
|
|
|
|
|
|
CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Short term notes
payable
|
$
|
661,635
|
|
$
|
1,017,830
|
|
Accounts
payable
|
|
612,801
|
|
|
434,979
|
|
Accounts payable -
related parties
|
|
207,783
|
|
|
235,692
|
|
Short term loans -
bank
|
|
257,502
|
|
|
301,917
|
|
Short term loans -
others
|
|
60,717
|
|
|
62,067
|
|
Short term loans -
related parties
|
|
46,380
|
|
|
126,693
|
|
Current maturities of
long-term loans - related party
|
|
-
|
|
|
53,013
|
|
Other payables and
accrued liabilities
|
|
55,488
|
|
|
45,653
|
|
Other payable -
related parties
|
|
87,252
|
|
|
94,079
|
|
Customer
deposits
|
|
92,974
|
|
|
87,860
|
|
Customer deposits -
related parties
|
|
132,616
|
|
|
64,881
|
|
Deposit due to sales
representatives
|
|
17,871
|
|
|
24,343
|
|
Deposit due to sales
representatives - related parties
|
|
2,509
|
|
|
1,997
|
|
Taxes
payable
|
|
5,201
|
|
|
4,628
|
|
Deferred lease
income, current
|
|
2,176
|
|
|
2,187
|
|
Capital lease
obligations, current
|
|
8,508
|
|
|
4,321
|
|
TOTAL CURRENT
LIABILITIES
|
|
2,251,413
|
|
|
2,562,140
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES:
|
|
|
|
|
|
|
Long-term loans -
related party
|
|
339,549
|
|
|
19,644
|
|
Deferred lease
income, noncurrent
|
|
72,713
|
|
|
75,257
|
|
Capital lease
obligations, noncurrent
|
|
393,252
|
|
|
375,019
|
|
Profit sharing
liability
|
|
70,422
|
|
|
162,295
|
|
TOTAL
NON-CURRENT LIABILITIES
|
|
875,936
|
|
|
632,215
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
|
3,127,349
|
|
|
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 December 31, 2014 and
December 31, 2013
|
|
3
|
|
|
3
|
|
Common stock, $0.001
par value, 200,000,000 shares authorized,
64,458,588 and 58,234,688 shares issued, 61,986,282 and
55,762,382
shares outstanding as of December 31, 2014 and December 31,
2013,
respectively
|
|
64
|
|
|
58
|
|
Treasury stock, at
cost, 2,472,306 shares as of December 31, 2014 and
December 31, 2013
|
|
(4,199)
|
|
|
(4,199)
|
|
Paid-in-capital
|
|
115,494
|
|
|
106,878
|
|
Statutory
reserves
|
|
6,472
|
|
|
6,243
|
|
Accumulated
deficits
|
|
(463,521)
|
|
|
(414,798)
|
|
Accumulated
other comprehensive income
|
|
644
|
|
|
729
|
|
TOTAL GENERAL
STEEL HOLDINGS, INC. DEFICIENCY
|
|
|
(345,043)
|
|
|
(305,086)
|
|
|
|
|
|
|
|
|
|
NONCONTROLLING
INTERESTS
|
|
(217,082)
|
|
|
(188,911)
|
|
TOTAL
DEFICIENCY
|
|
|
(562,125)
|
|
|
(493,997)
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND
DEFICIENCY
|
|
|
$
|
2,565,224
|
|
$
|
2,700,358
|
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
|
(In thousands, except
per share data)
|
|
|
For the
Three months ended
December 31,
|
|
For the
Twelve months ended
December 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
(UNAUDITED)
|
|
(UNAUDITED)
|
|
|
|
|
|
|
SALES
|
|
$
|
423,508
|
|
$
|
482,218
|
|
$
|
1,900,292
|
|
$
|
2,016,548
|
SALES - RELATED
PARTIES
|
|
|
120,858
|
|
|
66,492
|
|
|
389,120
|
|
|
447,199
|
TOTAL
SALES
|
|
|
544,366
|
|
|
548,710
|
|
|
2,289,412
|
|
|
2,463,747
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF GOODS
SOLD
|
|
|
453,531
|
|
|
511,741
|
|
|
1,913,549
|
|
|
2,062,570
|
COST OF GOODS SOLD -
RELATED PARTIES
|
|
|
125,144
|
|
|
69,669
|
|
|
395,029
|
|
|
457,115
|
TOTAL COST OF
GOODS SOLD
|
|
|
578,675
|
|
|
581,410
|
|
|
2,308,578
|
|
|
2,519,685
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS (LOSS)
PROFIT
|
|
|
(34,309)
|
|
|
(32,700)
|
|
|
(19,166)
|
|
|
(55,938)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES
|
|
|
(22,219)
|
|
|
(24,762)
|
|
|
(78,555)
|
|
|
(84,226)
|
CHANGE IN FAIR VALUE
OF PROFIT SHARING LIABILITY
|
|
|
79,260
|
|
|
79,132
|
|
|
91,018
|
|
|
174,569
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS) FROM
OPERATIONS
|
|
|
22,732
|
|
|
21,670
|
|
|
(6,703)
|
|
|
34,405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER INCOME
(EXPENSE)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
11,675
|
|
|
2,557
|
|
|
21,700
|
|
|
11,214
|
Finance/interest expense
|
|
|
(21,937)
|
|
|
(22,963)
|
|
|
(96,673)
|
|
|
(91,878)
|
Change in fair
value of derivative liabilities -warrants
|
|
|
-
|
|
|
(1)
|
|
|
-
|
|
|
-
|
Gain (loss) on
disposal of equipment and intangible assets
|
|
|
(1,008)
|
|
|
311
|
|
|
(1,125)
|
|
|
424
|
Government
grant
|
|
|
327
|
|
|
4,216
|
|
|
327
|
|
|
4,216
|
Income from
equity investments
|
|
|
40
|
|
|
66
|
|
|
139
|
|
|
203
|
Foreign
currency transaction gain
|
|
|
(543)
|
|
|
946
|
|
|
786
|
|
|
1,394
|
Lease
income
|
|
|
545
|
|
|
545
|
|
|
2,175
|
|
|
2,158
|
Gain on
deconsolidation of a subsidiary
|
|
|
1,795
|
|
|
1,011
|
|
|
1,795
|
|
|
1,011
|
Payment for
public highway construction
|
|
|
-
|
|
|
(6,462)
|
|
|
-
|
|
|
(6,462)
|
Other
non-operating income (expense), net
|
|
|
(536)
|
|
|
(515)
|
|
|
(428)
|
|
|
1,044
|
Other expense, net
|
|
|
(9,642)
|
|
|
(20,289)
|
|
|
(71,304)
|
|
|
(76,676)
|
INCOME (LOSS) BEFORE
PROVISION FOR
INCOME TAXES AND NONCONTROLLING INTEREST
|
|
|
13,090
|
|
|
1,381
|
|
|
(78,007)
|
|
|
(42,271)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROVISION FOR INCOME
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
|
|
|
64
|
|
|
153
|
|
|
269
|
|
|
354
|
Deferred
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Provision for income taxes
|
|
|
64
|
|
|
153
|
|
|
269
|
|
|
354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
|
13,026
|
|
|
1,228
|
|
|
(78,276)
|
|
|
(42,625)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Net income
(loss) attributable to
noncontrolling interest
|
|
|
3,676
|
|
|
1,330
|
|
|
(29,553)
|
|
|
(9,609)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS ATTRIBUTABLE
TO GENERAL
STEEL HOLDINGS, INC.
|
|
$
|
9,350
|
|
$
|
(102)
|
|
$
|
(48,723)
|
|
$
|
(33,016)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
|
13,026
|
|
$
|
1,228
|
|
$
|
(78,276)
|
|
$
|
(42,625)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER COMPREHENSIVE
INCOME (LOSS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustments
|
|
|
81
|
|
|
(2,142)
|
|
|
590
|
|
|
(14,425)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS)
|
|
|
13,107
|
|
|
(914)
|
|
|
(77,686)
|
|
|
(57,050)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Comprehensive income (loss) attributable to
noncontrolling interest
|
|
|
3,150
|
|
|
401
|
|
|
(28,652)
|
|
|
(15,107)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COMPREHENSIVE INCOME
(LOSS)
ATTRIBUTABLE TO GENERAL STEEL
HOLDINGS, INC.
|
|
$
|
9,957
|
|
$
|
(1,315)
|
|
$
|
(49,034)
|
|
$
|
(41,943)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
NUMBER OF SHARES
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
59,796
|
|
|
55,570
|
|
|
56,841
|
|
|
55,126
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LOSS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and
Diluted
|
|
$
|
0.16
|
|
$
|
(0.002)
|
|
$
|
(0.86)
|
|
$
|
(0.60)
|
GENERAL STEEL
HOLDINGS, INC. AND SUBSIDIARIES
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
For the
Twelve months ended
December 31,
|
|
2014
|
|
2013
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
|
Net
loss
|
$
|
(78,276)
|
|
$
|
(42,625)
|
|
Adjustments to reconcile net loss to cash provided
by (used in) operating activities:
|
|
|
|
|
Depreciation, amortization and depletion
|
|
96,277
|
|
|
89,048
|
|
Change
in fair value of derivative liabilities
|
|
|
|
|
(1)
|
|
Change
in fair value of profit sharing liability
|
|
(91,018)
|
|
|
(174,569)
|
|
(Gain) loss on disposal of equipment and intangible
assets
|
|
1,125
|
|
|
(424)
|
|
Provision for doubtful accounts
|
|
10,110
|
|
|
(677)
|
|
Reservation of mine maintenance fee
|
|
296
|
|
|
327
|
|
Stock issued for services and compensation
|
|
1,122
|
|
|
1,165
|
|
Amortization of deferred financing cost on capital
lease
|
|
21,252
|
|
|
20,799
|
|
Income from equity investments
|
|
(139)
|
|
|
(203)
|
|
Foreign currency transaction (gain) loss
|
|
(786)
|
|
|
(1,394)
|
|
Gain on deconsolidation of a subsidiary
|
|
(1,795)
|
|
|
(1,011)
|
|
Deferred lease income
|
|
(2,175)
|
|
|
(2,158)
|
|
Changes in
operating assets and liabilities
|
|
|
|
|
|
|
Notes receivable
|
|
51,841
|
|
|
25,555
|
|
Accounts receivable
|
|
(6,037)
|
|
|
1,281
|
|
Accounts receivable - related parties
|
|
(5,694)
|
|
|
12,161
|
|
Other receivables
|
|
(13,029)
|
|
|
(1,116)
|
|
Other receivables - related parties
|
|
8,005
|
|
|
(48,017)
|
|
Inventories
|
|
50,950
|
|
|
(40,632)
|
|
Advances on inventory purchases
|
|
(32,293)
|
|
|
25,414
|
|
Advances on inventory purchases - related parties
|
|
8,332
|
|
|
(145,686)
|
|
Prepaid expense and other
|
|
(3,418)
|
|
|
(916)
|
|
Long-term deferred expense
|
|
206
|
|
|
422
|
|
Prepaid taxes
|
|
22,464
|
|
|
(3,485)
|
|
Accounts payable
|
|
49,705
|
|
|
23,760
|
|
Accounts payable - related parties
|
|
(26,227)
|
|
|
113,034
|
|
Other payables and accrued liabilities
|
|
8,580
|
|
|
(10,508)
|
|
Other payables - related parties
|
|
(6,370)
|
|
|
8,332
|
|
Customer deposits
|
|
6,134
|
|
|
(41,069)
|
|
Customer deposits - related parties
|
|
68,007
|
|
|
41,636
|
|
Taxes payable
|
|
735
|
|
|
(12,367)
|
|
Net cash provided by (used in) operating
activities
|
|
137,884
|
|
|
(163,924)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
|
Restricted
cash
|
|
41,669
|
|
|
(64,860)
|
|
Proceeds from
dividends declared
|
|
545
|
|
|
-
|
|
Loan to
unrelated parties
|
|
(35,977)
|
|
|
-
|
|
Loans to
related parties
|
|
-
|
|
|
(200)
|
|
Repayments
from related parties
|
|
4,540
|
|
|
1,660
|
|
Cash proceeds
from (made to) short term investment
|
|
81
|
|
|
(81)
|
|
Cash proceeds from sales of equipment and intangible assets
|
|
36
|
|
|
160
|
|
Equipment
purchase and intangible assets
|
|
(239,633)
|
|
|
(43,355)
|
|
Cash proceeds
from sale of equity ownership
|
|
-
|
|
|
13,619
|
|
Effect on cash
due to deconsolidation of a subsidiary
|
|
(267)
|
|
|
(12,735)
|
|
Net
cash used in investing activities
|
|
(229,006)
|
|
|
(105,792)
|
|
|
|
|
|
|
|
|
CASH FLOWS FINANCING
ACTIVITIES:
|
|
|
|
|
|
|
Capital
contributed by noncontrolling interest
|
|
-
|
|
|
18,028
|
|
Notes
receivable - restricted
|
|
281,665
|
|
|
(26,066)
|
|
Borrowings on
short term notes payable
|
|
1,570,660
|
|
|
1,913,987
|
|
Payments on
short term notes payable
|
|
(1,921,644)
|
|
|
(1,911,006)
|
|
Borrowings on
short term loans - bank
|
|
358,001
|
|
|
371,685
|
|
Payments on
short term loans - bank
|
|
(402,259)
|
|
|
(222,104)
|
|
Borrowings on
short term loan - others
|
|
47,797
|
|
|
69,632
|
|
Payments on
short term loans - others
|
|
(53,403)
|
|
|
(72,989)
|
|
Borrowings on
short term loan - related parties
|
|
-
|
|
|
393,833
|
|
Payments on
short term loans - related parties
|
|
(28,712)
|
|
|
(248,119)
|
|
Deposits due
to sales representatives
|
|
(6,348)
|
|
|
(10,455)
|
|
Deposits due
to sales representatives - related parties
|
|
521
|
|
|
711
|
|
Borrowings on
long-term loans - related party
|
|
219,929
|
|
|
-
|
|
Payments on
long-term loans - related party
|
|
(1,700)
|
|
|
(22,940)
|
|
Principal
payment under capital lease obligation
|
|
(1,375)
|
|
|
(218)
|
|
Proceed from
common stock issued to CEO
|
|
7,500
|
|
|
-
|
|
Net cash provided by financing activities
|
|
70,632
|
|
|
253,979
|
|
EFFECTS OF EXCHANGE
RATE CHANGE IN CASH
|
|
164
|
|
|
1,237
|
|
DECREASE IN
CASH
|
|
(20,326)
|
|
|
(14,500)
|
|
CASH, beginning of
year
|
|
31,967
|
|
|
46,467
|
|
CASH, end of
year
|
$
|
11,641
|
|
$
|
31,967
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/general-steel-reports-fourth-quarter-and-full-year-2014-financial-results-300058334.html
SOURCE General Steel Holdings, Inc.