RNS Number : 8607J
Globe Specialty Metals, Inc
10 December 2008
Globe Specialty Metals Announces Record First Quarter 2009 Sales
New York, N.Y., December 8, 2008 - Globe Specialty Metals (AIM: GLBM.L) today announces results for its first quarter of fiscal year
2009 ended September 30, 2008. Globe achieved record sales of $149.2 million for the quarter, an increase of 67% over the same period in the
prior year. Both net income and adjusted EBITDA increased significantly in the first quarter to $17.0 million and $34.7 million,
respectively.
CEO Jeff Bradley said "We are pleased with these results in light of the very challenging economic environment. We expect the
unprecedented slowdown in the overall economy and particularly the automotive and construction industries to impact our business going
forward, but we still look forward to achieving solid results through the remainder of the fiscal year."
"Additionally, we have instituted an aggressive cost reduction program across all of our businesses and facilities that we expect will
mitigate some of the profitability pressure forecasted from lower customer demand."
About Globe Specialty Metals
Globe Specialty Metals, Inc. is among the world's largest producers of silicon metal and silicon based specialty alloys, critical
ingredients in a host of industrial and consumer products with growing markets. Customers include major silicone chemical, aluminum and
steel manufacturers, auto companies and their suppliers, ductile iron foundries, manufacturers of photovoltaic solar cells and computer
chips, and concrete producers. The Company is headquartered in New York City. For further information please visit our web site at
www.glbsm.com.
Forward-Looking Statements
This release may contain ''forward-looking statements'' within the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as ''anticipates,'' ''intends,'' '' plans,'' ''seeks,'' ''believes,''
''estimates,'' ''expects'' and similar references to future periods, or by the inclusion of forecasts or projections. Forward-looking
statements are based on the current expectations and assumptions of Globe Specialty Metals Inc. ("GSM" or the "Company") regarding its
business, financial condition, the economy and other future conditions.
Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes
in circumstances that are difficult to predict. The Company's actual results may differ materially from those contemplated by the
forward-looking statements. The Company cautions you therefore that you should not rely on any of these forward-looking statements as
statements of historical fact or as guarantees or assurances of future performance. Important factors that could cause actual results to
differ materially from those in the forward-looking statements include regional, national or global political, economic, business,
competitive, market and regulatory conditions including, among others, changes in metals prices; increases in the cost of raw materials or
energy; competition in the metals and foundry industries; environmental and regulatory risks; ability to identify liabilities associated
with acquired properties prior to their acquisition; ability to manage price and operational risks including industrial accidents and natural disasters; ability to manage foreign operations; changes in technology;
and ability to acquire or renew permits and approvals.
Any forward-looking statement made by the Company or management in this release speaks only as of the date on which it or they make it.
Factors or events that could cause the Company's actual results to differ may emerge from time to time, and it is not possible for the
Company to predict all of them. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result
of new information, future developments or otherwise, unless otherwise required to do so by the London Stock Exchange AIM Market (AIM) rules
(the "AIM Rules")."
Adjusted EBITDA
We have included adjusted EBITDA to provide a supplemental measure of our performance which we believe is important because it
eliminates items that have less bearing on our operating performance and so highlights trends in our core business that may not otherwise be
apparent when relying solely on GAAP financial measures. Adjusted EBITDA represents EBITDA as further adjusted by the removal of non-cash
share-based compensation costs. Prior to March 30, 2008, awards were liability-classified given net cash settlement provisions contained in
the Company's stock option plan and awards were required to be remeasured to fair value each reporting period. Effective March 30, 2008, the
Company agreed to amend the terms of its share-based compensation plan to remove the cash settlement provisions. Based on this amendment,
all outstanding awards were converted from liability-classified awards to equity-classified awards.
Enquiries:
Globe Specialty Metals, Inc. +1 212 798 8122
Jeff Bradley, Chief Executive Officer
Mal Appelbaum, Chief Financial Officer +1 212 798 8123
Collins Stewart Europe Limited +44 (0) 207 523 8350
Seema Paterson/Adam Cowen
GLOBE SPECIALTY METALS, INC.
AND SUBSIDIARY COMPANIES
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
September June 30,
30,
2008 2008
$ $
(Unaudited) (
Unaudited
)
Assets
Current assets:
Cash and cash equivalents 73,154 73,994
Accounts receivable, net of allowance for doubtful accounts of
$959
and $1,021 at September 30, 2008 and June 30, 2008, respectively 53,567 53,801
Inventories 70,491 63,568
Prepaid expenses and other current assets 26,417 25,223
Total current assets 223,629 216,586
Property, plant, and equipment, net of accumulated depreciation 192,135 180,659
Goodwill 107,054 107,257
Other intangible assets 16,046 16,884
Investments in affiliates 8,152 7,965
Deferred tax assets 2,091 2,720
Other assets 15,965 16,103
Total assets 565,072 548,174
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 40,490 40,493
Current portion of long-term debt 20,074 17,045
Short-term debt 15,564 20,140
Accrued expenses and other current 30,236 26,841
liabilities
Total current liabilities 106,364 104,519
Long-term liabilities:
Long-term debt 48,674 52,020
Deferred tax liabilities 22,815 22,756
Other long-term liabilities 21,149 22,642
Total liabilities 199,002 201,937
Commitments and contingences
Minority interest 3,570 3,956
Stockholders' equity:
Common stock, $0.0001 par value.
Authorized 150,000,000 shares;
issued and outstanding 63,217,084 and
63,050,416 shares at
September 30, 2008 and June 30, 2008, 6 6
respectively
Additional paid-in capital 299,375 296,137
Retained earnings 63,606 46,641
Accumulated other comprehensive (loss) (487) (503)
income
Total stockholders' equity 362,500 342,281
Total liabilities and stockholders' equity $ 565,072 548,174
GLOBE SPECIALTY METALS, INC.
AND SUBSIDIARY COMPANIES
Consolidated Income Statements
(In thousands, except per share amounts)
Three months ended
September 30, 2008 June 30, September 30, 2007
$ 2008 $
$
(Unaudited) (Unaudited) (Unaudited)
Net sales 149,157 135,888 89,286
Cost of goods sold 104,583 94,088 75,896
Selling, general, and administrative 16,587 15,006 7,931
expenses
Research and development 593 494 75
Operating income 27,394 26,300 5,384
Other income (expense):
Interest income 403 331 844
Interest expense,
net of capitalized
interest of
$180, $29, and $70 (2,051) (2,054) (2,328)
respectively
Foreign exchange (1,309) 618 242
gain (loss)
Other income 844 923 261
(expense)
Income before 25,281 26,118 4,403
provision for income
taxes
Provision for income taxes 8,702 8,593 1,214
Net income before 16,579 17,525 3,189
minority interest
Minority interest 386 695 -
Net income 16,965 18,220 3,189
attributable to
common stock
Weighted average shares outstanding:
Basic 63,137 63,050 56,672
Diluted 83,057 82,550 63,807
Earnings per common share:
Basic 0.27 0.29 0.06
Diluted 0.20 0.22 0.05
Adjusted EBITDA:
Net Income 16,965 18,220 3,189
Provision for income taxes 8,702 8,593 1,214
Net interest expense (income) 1,648 1,723 1,484
Depreciation & amortization 4,943 5,084 4,449
EBITDA 32,258 33,620 10,336
Non-cash share-based compensation expense 2,405 1,559 317
Adjusted EBITDA 34,663 35,179 10,653
GLOBE SPECIALTY METALS, INC.
AND SUBSIDIARY COMPANIES
Consolidated Statements of Cash Flows
(In thousands)
Three months ended
September 30, 2008 June 30, September 30, 2007
$ 2008 $
$
(Unaudited) (Unaudited) (Unaudited)
Cash flows from operating activities:
Net income attributable to common stock 16,965 18,220 3,189
Adjustments to reconcile net income attributable to common stock to
net cash provided by operating activities:
Depreciation and 4,943 5,084 4,449
amortization of
intangible assets
Amortization of (223) (230) (1,470)
customer contracts
liability
Share-based 2,405 1,559 317
compensation
Losses attributable (386) (695) -
to Minority interest
Loss (gain) on sale - 97 -
of assets
Deferred taxes 583 1,892 (224)
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, 256 (4,706) 3,064
net
Inventories (7,338) (3,472) (7,738)
Prepaid expenses and (3,814) (6,240) (1,607)
other current assets
Accounts payable (830) (189) 4,597
Accrued expenses and 3,386 6,714 1,141
other current
liabilities
Other 180 9,492 (1,254)
Net cash provided by 16,127 27,526 4,464
operating activities
Cash flows from investing activities:
Capital expenditures (14,217) (9,259) (5,436)
Purchase of held-to-maturity treasury securities 2,987 - -
Acquisition of businesses, net of cash acquired 12 523 -
Net cash (used in) provided by investing activities (11,218) (8,736) (5,436)
Cash flows from financing activities:
Proceeds from warrants exercised 833 (1) -
Net borrowings of long-term debt (338) 91 (2,479)
Net (payments) borrowings of short-term debt (4,600) (17,947) (1,572)
Solsil, Inc. common share issuance - 135 -
Other financing activities (1,700) (1,876) -
Net cash (used in) provided by financing activities (5,805) (19,598) (4,051)
Effect of exchange rate changes on cash and cash equivalents 56 50 -
Net increase in cash and cash equivalents (840) (758) (5,023)
Cash and cash equivalents at beginning of period 73,994 74,752 67,741
Cash and cash equivalents at end of period 73,154 73,994 62,718
Supplemental disclosure of cash flow information:
Cash paid for interest 3,194 1,734 1,662
Cash paid for income taxes 1,127 6,149 127
GLOBE SPECIALTY METALS, INC.
AND SUBSIDIARY COMPANIES
Supplemental Statistics
Three months ended,
September 30, 2008 June 30, September 30, 2007
$ 2008 $
$
(Unaudited) (Unaudited) (Unaudited)
Shipments in metric tons:
Silicon metal 33,135 39,292 32,766
Silicon metal alloys 22,126 17,166 17,101
Total shipments^ 55,261 56,458 49,867
^ Excludes By-products
This information is provided by RNS
The company news service from the London Stock Exchange
END
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