Ferroglobe Reports Results for the Second Quarter of 2020
Ferroglobe PLC reported Q2 2020 sales of $250.0 million, down 19.7% from Q1 2020 and 38.8% year-over-year. The company experienced a net loss of $(14.0) million, an improvement from $(49.1) million in Q1. Adjusted EBITDA stood at $22.4 million, up from $(17.6) million in Q1, reflecting a margin of 9.0%. Operating cash flow was positive at $38.1 million, with gross debt rising to $451 million. The ongoing COVID-19 pandemic has impacted product demand, though operational changes have aided cost reductions.
- Adjusted EBITDA improved to $22.4 million, up from $(17.6) million in Q1 2020.
- Operating cash flow of $38.1 million indicates strong cash management.
- Gross debt increased slightly to $451 million, manageable given cash generation.
- Sales decreased by 19.7% from Q1 2020, reflecting reduced demand due to COVID-19.
- Net loss of $(14.0) million, though improved from previous quarters, remains a concern.
- Total shipments down 24.1%, indicating significant demand challenges.
Sales of
- Q2 sales of
$250.0 million compared to$311.2 million in Q1 2020, and$409.5 million in Q2 2019 - Q2 net loss of
$(14.0) million compared to$(49.1) million in Q1 2020, and$(43.7) million in Q2 2019 - Adjusted EBITDA of
$22.4 million compared to$(17.6) million in Q1 2020 and$5.0 million in Q2 2019 - Gross debt of
$451 million at the end of Q2 2020, compared to$443 million at the end of Q1 2020 - Cash generation of
$8.7 million driven by positive operating cash flow of$38.1 million - Continued improvement in working capital during the quarter by
$26.2 million
LONDON, Aug. 31, 2020 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), a leading producer globally of silicon metal, silicon-based and manganese-based specialty alloys, today announced results for the second quarter of 2020.
Q2 2020 Earnings Highlights
In Q2 2020, Ferroglobe posted a net loss of
Q2 2020 reported EBITDA was
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| $,000 (unaudited) | June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | |||||||||||||||
| Sales | $ | 250,004 | $ | 311,223 | $ | 409,479 | $ | 561,226 | $ | 856,870 | ||||||||||
| Net (loss) profit | $ | (14,035 | ) | $ | (49,057 | ) | $ | (43,658 | ) | $ | (63,093 | ) | $ | (72,212 | ) | |||||
| Diluted EPS | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.24 | ) | $ | (0.35 | ) | $ | (0.40 | ) | |||||
| Adjusted net (loss) income attributable to the parent | $ | (11,064 | ) | $ | (37,714 | ) | $ | (22,221 | ) | $ | (48,777 | ) | $ | (44,115 | ) | |||||
| Adjusted diluted EPS | $ | (0.07 | ) | $ | (0.22 | ) | $ | (0.13 | ) | $ | (0.30 | ) | $ | (0.26 | ) | |||||
| Adjusted EBITDA | $ | 22,413 | $ | (17,617 | ) | $ | 5,035 | $ | 4,796 | $ | 8,362 | |||||||||
| Adjusted EBITDA margin | 9.0 | % | -5.7 | % | 1.2 | % | 0.9 | % | 1.0 | % | ||||||||||
Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “Given the unprecedented operating environment created by COVID-19, the business has endured a number of challenges during the quarter. However, our ability to react quickly and leverage our assets to drive down costs, resulted in continued improvement in our financials during the quarter.” Dr. Levi added, “With the looming uncertainties ahead of us, we will continue to take the actions necessary to navigate these times. Simultaneously, we are committed to executing our new strategic plan and have commenced with a number of initatives in the near term. This three year plan is expected to contribute
Cash Flow and Balance Sheet
Cash generated from operations during Q2 2020 was
Gross debt was
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “A slowdown across all of our core product categories resulted in a decline in our second quarter sales by
COVID-19
Since January 2020, the COVID-19 pandemic has spread to various jurisdictions where the Company does business. The Company has been monitoring the evolving situation, and consequent emerging risk. Among other steps, the Company has implemented a coronavirus crisis management team, which has been meeting regularly to ensure the Company and its subsidiaries take appropriate action to protect all employees and ensure business continuity.
While it is difficult to forecast all the impacts of the COVID-19 pandemic, at the present time the Company’s day-to-day operations continue without being materially affected and the pandemic is not causing disruption in our business and supply chains. As they evolve, however, such impacts could have a material adverse effect on our business, results of operations and financial condition.
During the second quarter demand for our products was adversely impacted by COVID-19. The Company is continuously evaluating how evolving customer demand and sales price evolution stand to affect the Company’s business and results in the next twelve months.
In connection with the preparation of our consolidated financial statements, we conducted an evaluation as to whether there were conditions and events, considered in the aggregate, which raise substantial doubt as to the Company’s ability to continue as a going concern in the one year period after the date of the issuance of these interim financial statements. For this interim financial statement, the evaluation was updated. Given the speed and frequency of continuously evolving developments with respect to this pandemic and the uncertainties this may bring for the Company and the demand for its products, it is difficult to forecast the level of trading activity and hence cash flow in the next twelve months. Developing a reliable estimate of the potential impact on the results of operations and cash flow at this time is difficult as markets and industries react to the pandemic and the measures implemented in response to it, but our downside scenario analysis supports an expectation that the Company will have cash headroom to continue to operate throughout the next twelve months. The key assumption underlying this assessment is a forecast recovery in trading activity in the latter part of 2020.
Additionally, the Indenture governing the Notes includes provisions which, in the event of a change of control, would require the Company to offer to redeem the outstanding senior Notes at a cash purchase price equal to
Subsequent events
The Company sold CO2 emission rights during July and August. This resulted in proceeds of approximately
Discussion of Second Quarter 2020 Results
The Company notes that the financial results presented for the second quarter and year to date as of June 30, 2020 are unaudited and may be subsequently adjusted for items including impairment of goodwill and long-lived assets. Management is continually assessing the potential impacts of COVID-19 and the Company’s pending new strategy, and will make such adjustments as and when required.
Sales
Sales for Q2 2020 were
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||||||
| June 30, 2020 | March 31, 2020 | Change | June 30, 2019 | Change | June 30, 2020 | June 30, 2019 | Change | |||||||||||||||||
| Shipments in metric tons: | ||||||||||||||||||||||||
| Silicon Metal | 47,884 | 53,321 | -10.2 | % | 54,084 | -11.5 | % | 101,205 | 116,353 | -13.0 | % | |||||||||||||
| Silicon-based Alloys | 39,479 | 60,932 | -35.2 | % | 79,264 | -50.2 | % | 100,411 | 161,065 | -37.7 | % | |||||||||||||
| Manganese-based Alloys | 55,290 | 73,724 | -25.0 | % | 99,555 | -44.5 | % | 129,014 | 203,224 | -36.5 | % | |||||||||||||
| Total shipments* | 142,653 | 187,977 | -24.1 | % | 232,903 | -38.8 | % | 330,630 | 480,642 | -31.2 | % | |||||||||||||
| Average selling price ($/MT): | ||||||||||||||||||||||||
| Silicon Metal | $ | 2,215 | $ | 2,212 | 0.1 | % | $ | 2,320 | -4.5 | % | $ | 2,213 | $ | 2,340 | -5.4 | % | ||||||||
| Silicon-based Alloys | $ | 1,537 | $ | 1,474 | 4.3 | % | $ | 1,572 | -2.2 | % | $ | 1,499 | $ | 1,621 | -7.5 | % | ||||||||
| Manganese-based Alloys | $ | 1,088 | $ | 973 | 11.8 | % | $ | 1,188 | -8.4 | % | $ | 1,022 | $ | 1,180 | -13.4 | % | ||||||||
| Total* | $ | 1,591 | $ | 1,487 | 7.0 | % | $ | 1,582 | 0.6 | % | $ | 1,531 | $ | 1,609 | -4.8 | % | ||||||||
| Average selling price ($/lb.): | ||||||||||||||||||||||||
| Silicon Metal | $ | 1.00 | $ | 1.00 | 0.1 | % | $ | 1.05 | -4.5 | % | $ | 1.00 | $ | 1.06 | -5.4 | % | ||||||||
| Silicon-based Alloys | $ | 0.70 | $ | 0.67 | 4.3 | % | $ | 0.71 | -2.2 | % | $ | 0.68 | $ | 0.74 | -7.5 | % | ||||||||
| Manganese-based Alloys | $ | 0.49 | $ | 0.44 | 11.8 | % | $ | 0.54 | -8.4 | % | $ | 0.46 | $ | 0.54 | -13.4 | % | ||||||||
| Total* | $ | 0.72 | $ | 0.67 | 7.0 | % | $ | 0.72 | 0.6 | % | $ | 0.69 | $ | 0.73 | -4.8 | % | ||||||||
* Excludes by-products and other
Sales Prices & Volumes By Product
During Q2 2020, total product average selling prices increased by
Sales volumes in Q2 declined by
Cost of Sales
Cost of sales was
Other Operating Expenses
Other operating expenses amounted to
Net Loss Attributable to the Parent
In Q2 2020, net loss attributable to the Parent was
Adjusted EBITDA
In Q2 2020, adjusted EBITDA was
Conference Call
Ferroglobe management will review the second quarter during a conference call at 9:00 a.m. Eastern Time on September 1, 2020.
The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 3128367). International callers should dial +1 914‑495‑8526 (conference ID 3128367). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/mmc/p/a4i7n7ab.
About Ferroglobe
Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based and manganese-based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “target”, “will” and words of similar meaning or the negative thereof.
Forward-looking statements contained in this press release are based on information currently available to the Company and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control.
Forward-looking financial information and other metrics presented herein represent the Company’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.
All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.
Non-IFRS Measures
Adjusted EBITDA, adjusted EBITDA margin, adjusted net profit, adjusted profit per share, working capital and net debt, are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success. Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.
INVESTOR CONTACT:
Gaurav Mehta
EVP – Investor Relations
Email: investor.relations@ferroglobe.com
Louie Toma
Managing Director
Hayden IR
Tel: 1-774-291-6000
Email: louie@haydenir.com
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||
| Sales | $ | 250,004 | $ | 311,223 | $ | 409,479 | $ | 561,226 | $ | 856,870 | ||||||||||
| Cost of sales | (153,291 | ) | (243,360 | ) | (292,432 | ) | (396,651 | ) | (621,800 | ) | ||||||||||
| Other operating income | 10,160 | 7,768 | 14,530 | 17,928 | 28,551 | |||||||||||||||
| Staff costs | (48,912 | ) | (55,097 | ) | (74,852 | ) | (104,009 | ) | (149,115 | ) | ||||||||||
| Other operating expense | (35,953 | ) | (40,067 | ) | (62,924 | ) | (76,020 | ) | (116,841 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | (27,459 | ) | (28,668 | ) | (30,204 | ) | (56,127 | ) | (60,574 | ) | ||||||||||
| Impairment losses | — | — | (1,195 | ) | — | (1,335 | ) | |||||||||||||
| Other gain (loss) | 85 | (671 | ) | 275 | (586 | ) | (122 | ) | ||||||||||||
| Operating (loss) profit | (5,365 | ) | (48,872 | ) | (37,323 | ) | (54,239 | ) | (64,366 | ) | ||||||||||
| Net finance expense | (16,693 | ) | (16,484 | ) | (15,047 | ) | (33,177 | ) | (28,870 | ) | ||||||||||
| Financial derivatives (loss) gain | — | 3,168 | (295 | ) | 3,168 | 969 | ||||||||||||||
| Exchange differences | 2,633 | 2,436 | 5,080 | 5,069 | 3,601 | |||||||||||||||
| (Loss) profit before tax | (19,425 | ) | (59,753 | ) | (47,585 | ) | (79,179 | ) | (88,666 | ) | ||||||||||
| Income tax benefit (expense) | 5,390 | 10,696 | 4,890 | 16,086 | 13,100 | |||||||||||||||
| (Loss) profit for the period from continuing operations | (14,035 | ) | (49,057 | ) | (42,695 | ) | (63,093 | ) | (75,566 | ) | ||||||||||
| Profit for the period from discontinued operations | — | — | (963 | ) | — | 3,354 | ||||||||||||||
| (Loss) profit for the period | (14,035 | ) | (49,057 | ) | (43,658 | ) | (63,093 | ) | (72,212 | ) | ||||||||||
| Loss (profit) attributable to non-controlling interest | 1,928 | 1,159 | 2,835 | 3,087 | 4,559 | |||||||||||||||
| (Loss) profit attributable to the parent | $ | (12,107 | ) | $ | (47,898 | ) | $ | (40,823 | ) | $ | (60,006 | ) | $ | (67,653 | ) | |||||
| EBITDA | $ | 22,093 | $ | (20,204 | ) | $ | (7,119 | ) | $ | 1,888 | $ | (3,792 | ) | |||||||
| Adjusted EBITDA | $ | 22,413 | $ | (17,617 | ) | $ | 5,035 | $ | 4,796 | $ | 8,362 | |||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 169,254 | 169,249 | 169,123 | 169,252 | 169,123 | |||||||||||||||
| Diluted | 169,254 | 169,249 | 169,123 | 169,252 | 169,123 | |||||||||||||||
| (Loss) profit per ordinary share | ||||||||||||||||||||
| Basic | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.24 | ) | $ | (0.35 | ) | $ | (0.40 | ) | |||||
| Diluted | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.24 | ) | $ | (0.35 | ) | $ | (0.40 | ) | |||||
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
| June 30, | March 31, | December 31, | ||||||||||
| 2020 | 2020 | 2019 | ||||||||||
| ASSETS | ||||||||||||
| Non-current assets | ||||||||||||
| Goodwill | $ | 29,702 | $ | 29,702 | $ | 29,702 | ||||||
| Other intangible assets | 45,655 | 50,373 | 51,267 | |||||||||
| Property, plant and equipment | 677,081 | 689,383 | 740,906 | |||||||||
| Other non-current financial assets | 6,404 | 5,683 | 2,618 | |||||||||
| Deferred tax assets | 43,102 | 65,360 | 59,551 | |||||||||
| Non-current receivables from related parties | 2,240 | 2,191 | 2,247 | |||||||||
| Other non-current assets | 4,228 | 1,520 | 1,597 | |||||||||
| Non-current restricted cash and cash equivalents | 28,366 | 28,173 | 28,323 | |||||||||
| Total non-current assets | 836,778 | 872,385 | 916,211 | |||||||||
| Current assets | ||||||||||||
| Inventories | 305,438 | 287,258 | 354,121 | |||||||||
| Trade and other receivables | 172,036 | 216,970 | 309,064 | |||||||||
| Current receivables from related parties | 2,955 | 2,895 | 2,955 | |||||||||
| Current income tax assets | 12,151 | 16,298 | 27,930 | |||||||||
| Other current financial assets | 4,791 | 5,062 | 5,544 | |||||||||
| Other current assets | 22,602 | 16,113 | 23,676 | |||||||||
| Cash and cash equivalents * | 124,876 | 116,316 | 94,852 | |||||||||
| Total current assets | 644,849 | 660,912 | 818,142 | |||||||||
| Total assets | $ | 1,481,627 | $ | 1,533,297 | $ | 1,734,353 | ||||||
| EQUITY AND LIABILITIES | ||||||||||||
| Equity | $ | 519,974 | $ | 525,117 | $ | 602,297 | ||||||
| Non-current liabilities | ||||||||||||
| Deferred income | 4,983 | 9,081 | 1,253 | |||||||||
| Provisions | 81,659 | 79,135 | 84,852 | |||||||||
| Bank borrowings | 92,552 | 111,583 | 144,388 | |||||||||
| Lease liabilities | 13,512 | 14,642 | 16,972 | |||||||||
| Debt instruments | 345,284 | 344,639 | 344,014 | |||||||||
| Other financial liabilities | 33,316 | 32,702 | 43,157 | |||||||||
| Other non-current liabilities | 25,785 | 26,817 | 25,906 | |||||||||
| Deferred tax liabilities | 40,162 | 69,084 | 74,057 | |||||||||
| Total non-current liabilities | 637,252 | 687,683 | 734,599 | |||||||||
| Current liabilities | ||||||||||||
| Provisions | 37,367 | 34,853 | 46,091 | |||||||||
| Bank borrowings | 245 | 1,369 | 14,611 | |||||||||
| Lease liabilities | 8,592 | 8,932 | 8,900 | |||||||||
| Debt instruments | 10,994 | 2,820 | 10,937 | |||||||||
| Other financial liabilities | 26,318 | 23,101 | 23,382 | |||||||||
| Payables to related parties | 2,056 | 4,572 | 4,830 | |||||||||
| Trade and other payables | 156,053 | 156,634 | 189,229 | |||||||||
| Current income tax liabilities | 2,146 | 1,485 | 3,048 | |||||||||
| Other current liabilities | 80,630 | 86,731 | 96,429 | |||||||||
| Liabilities associated with assets classified as held for sale | — | — | — | |||||||||
| Total current liabilities | 324,401 | 320,497 | 397,457 | |||||||||
| Total equity and liabilities | $ | 1,481,627 | $ | 1,533,297 | $ | 1,734,353 | ||||||
*Cash and cash equivalents at June 30, 2020 includes the cash balance of the group’s European A/R securitization program of
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019* | June 30, 2020 | June 30, 2019* | ||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||
| (Loss) profit for the period | $ | (14,035 | ) | $ | (49,057 | ) | $ | (43,658 | ) | $ | (63,092 | ) | $ | (72,212 | ) | |||||
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | ||||||||||||||||||||
| Income tax (benefit) expense | (5,390 | ) | (10,696 | ) | (5,215 | ) | (16,086 | ) | (11,919 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 27,459 | 28,668 | 31,327 | 56,127 | 63,404 | |||||||||||||||
| Net finance expense | 16,693 | 16,484 | 16,145 | 33,177 | 30,901 | |||||||||||||||
| Financial derivatives loss (gain) | — | (3,168 | ) | 295 | (3,168 | ) | (969 | ) | ||||||||||||
| Exchange differences | (2,633 | ) | (2,436 | ) | (5,080 | ) | (5,069 | ) | (3,601 | ) | ||||||||||
| Impairment losses | — | — | 1,195 | — | 1,335 | |||||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||
| Gain on disposal of discontinued operation | — | — | — | — | — | |||||||||||||||
| Share-based compensation | 704 | 722 | 933 | 1,426 | 2,265 | |||||||||||||||
| Other adjustments | (85 | ) | 671 | (275 | ) | 586 | 122 | |||||||||||||
| Changes in operating assets and liabilities | — | |||||||||||||||||||
| (Increase) decrease in inventories | (12,471 | ) | 51,577 | (46,950 | ) | 39,106 | (46,915 | ) | ||||||||||||
| (Increase) decrease in trade receivables | 45,537 | 83,832 | (32,316 | ) | 129,369 | (3,945 | ) | |||||||||||||
| Increase (decrease) in trade payables | (4,875 | ) | (25,504 | ) | 21,625 | (30,379 | ) | (1,342 | ) | |||||||||||
| Other | (16,287 | ) | (11,598 | ) | 28,472 | (27,885 | ) | 38,259 | ||||||||||||
| Income taxes paid | 3,522 | 10,119 | (540 | ) | 13,641 | (2,220 | ) | |||||||||||||
| Net cash provided (used) by operating activities | 38,139 | 89,614 | (34,042 | ) | 127,753 | (6,837 | ) | |||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||
| Interest and finance income received | 85 | 254 | 486 | 339 | 876 | |||||||||||||||
| Payments due to investments: | ||||||||||||||||||||
| Acquisition of subsidiary | — | — | — | — | — | |||||||||||||||
| Other intangible assets | — | — | (50 | ) | — | (184 | ) | |||||||||||||
| Property, plant and equipment | (5,056 | ) | (4,606 | ) | (7,128 | ) | (9,662 | ) | (20,576 | ) | ||||||||||
| Other | — | — | (627 | ) | — | (627 | ) | |||||||||||||
| Disposals: | ||||||||||||||||||||
| Disposal of subsidiaries | — | — | — | — | — | |||||||||||||||
| Other non-current assets | — | — | — | — | — | |||||||||||||||
| Other | — | — | 1,638 | — | 3,397 | |||||||||||||||
| Net cash (used) provided by investing activities | (4,971 | ) | (4,352 | ) | (5,681 | ) | (9,323 | ) | (17,114 | ) | ||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||
| Dividends paid | — | — | — | — | — | |||||||||||||||
| Payment for debt issuance costs | (279 | ) | (1,576 | ) | — | (1,855 | ) | (705 | ) | |||||||||||
| Repayment of hydro leases | — | — | — | — | — | |||||||||||||||
| Repayment of other financial liabilities | — | — | — | — | — | |||||||||||||||
| Increase/(decrease) in bank borrowings: | ||||||||||||||||||||
| Borrowings | — | — | 39,649 | — | 71,499 | |||||||||||||||
| Payments | (20,680 | ) | (44,880 | ) | (18,252 | ) | (65,560 | ) | (39,063 | ) | ||||||||||
| Proceeds from stock option exercises | — | — | — | — | — | |||||||||||||||
| Amounts paid due to leases | (2,418 | ) | (2,461 | ) | (7,236 | ) | (4,879 | ) | (12,944 | ) | ||||||||||
| Other amounts received/(paid) due to financing activities | — | 3,608 | — | 3,608 | — | |||||||||||||||
| Payments to acquire or redeem own shares | — | — | — | — | — | |||||||||||||||
| Interest paid | (1,131 | ) | (18,824 | ) | (3,341 | ) | (19,955 | ) | (21,849 | ) | ||||||||||
| Net cash (used) provided by financing activities | (24,508 | ) | (64,133 | ) | 10,820 | (88,641 | ) | (3,062 | ) | |||||||||||
| Total net cash flows for the period | 8,660 | 21,129 | (28,903 | ) | 29,789 | (27,013 | ) | |||||||||||||
| Beginning balance of cash and cash equivalents | 144,489 | 123,175 | 216,647 | 123,175 | 216,647 | |||||||||||||||
| Exchange differences on cash and cash equivalents in foreign currencies | 93 | 185 | 321 | 278 | (1,589 | ) | ||||||||||||||
| Ending balance of cash and cash equivalents | $ | 153,242 | $ | 144,489 | $ | 188,065 | $ | 153,242 | $ | 188,045 | ||||||||||
| Cash from continuing operations | 124,876 | 116,316 | 188,045 | 124,876 | 188,045 | |||||||||||||||
| Non-current restricted cash and cash equivalents | 28,366 | 28,173 | — | 28,366 | — | |||||||||||||||
| Cash and restricted cash in the statement of financial position | $ | 153,242 | $ | 144,489 | $ | 188,045 | $ | 153,242 | $ | 188,045 | ||||||||||
* While in previous periods Ferroglobe presented interest paid as cash flows from operating activities, management deems interest paid as among activities that alter the borrowing structure of the Company and therefore most appropriately presented as among financing activities. This change allows for a more fair presentation of cash flow to users of the financial statements. Previous periods have been restated in order to show interest paid as net cash used in financing activities.
Adjusted EBITDA ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||
| (Loss) profit attributable to the parent | $ | (12,107 | ) | $ | (47,898 | ) | $ | (40,823 | ) | $ | (60,006 | ) | $ | (67,653 | ) | |||||
| (Loss) profit for the period from discontinued operations | — | — | 963 | — | (3,354 | ) | ||||||||||||||
| Loss (profit) attributable to non-controlling interest | (1,928 | ) | (1,159 | ) | (2,835 | ) | (3,087 | ) | (4,559 | ) | ||||||||||
| Income tax (benefit) expense | (5,390 | ) | (10,696 | ) | (4,890 | ) | (16,086 | ) | (13,100 | ) | ||||||||||
| Net finance expense | 16,693 | 16,484 | 15,047 | 33,177 | 28,870 | |||||||||||||||
| Financial derivatives loss (gain) | — | (3,168 | ) | 295 | (3,168 | ) | (969 | ) | ||||||||||||
| Exchange differences | (2,633 | ) | (2,436 | ) | (5,080 | ) | (5,069 | ) | (3,601 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 27,459 | 28,668 | 30,204 | 56,127 | 60,574 | |||||||||||||||
| EBITDA | 22,093 | (20,205 | ) | (7,119 | ) | 1,888 | (3,792 | ) | ||||||||||||
| Impairment | — | — | — | — | — | |||||||||||||||
| Revaluation of biological assets | — | — | — | — | — | |||||||||||||||
| Contract termination costs | — | — | 9,260 | — | 9,260 | |||||||||||||||
| Restructuring and termination costs | — | — | 2,894 | — | 2,894 | |||||||||||||||
| Energy: France | (55 | ) | 125 | — | 70 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | 155 | — | 155 | — | |||||||||||||||
| Other Idling Costs | 375 | 2,308 | — | 2,683 | — | |||||||||||||||
| (Loss)profit on disposal of non-core businesses | — | — | — | — | — | |||||||||||||||
| Adjusted EBITDA | $ | 22,413 | $ | (17,617 | ) | $ | 5,035 | $ | 4,796 | $ | 8,362 | |||||||||
Adjusted profit attributable to Ferroglobe ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||
| (Loss) profit attributable to the parent | $ | (12,107 | ) | $ | (47,898 | ) | $ | (40,823 | ) | $ | (60,006 | ) | $ | (67,653 | ) | |||||
| Tax rate adjustment | 826 | 8,425 | 10,337 | 9,250 | 15,273 | |||||||||||||||
| Impairment | — | — | — | — | — | |||||||||||||||
| Revaluation of biological assets | — | — | — | — | — | |||||||||||||||
| Contract termination costs | — | — | 6,297 | — | 6,297 | |||||||||||||||
| Restructuring and termination costs | — | — | 1,968 | — | 1,968 | |||||||||||||||
| Energy: France | (37 | ) | 85 | — | 48 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | 105 | — | 105 | — | |||||||||||||||
| Other Idling Costs | 255 | 1,569 | — | 1,824 | — | |||||||||||||||
| (Loss) profit on disposal of non-core businesses | — | — | — | — | — | |||||||||||||||
| Adjusted (loss) profit attributable to the parent | $ | (11,064 | ) | $ | (37,714 | ) | $ | (22,221 | ) | $ | (48,777 | ) | $ | (44,115 | ) | |||||
Adjusted diluted profit per share:
| Quarter Ended | Quarter Ended | Quarter Ended | Six Months Ended | Six Months Ended | ||||||||||||||||
| June 30, 2020 | March 31, 2020 | June 30, 2019 | June 30, 2020 | June 30, 2019 | ||||||||||||||||
| Diluted (loss) profit per ordinary share | $ | (0.07 | ) | $ | (0.28 | ) | $ | (0.24 | ) | $ | (0.35 | ) | $ | (0.40 | ) | |||||
| Tax rate adjustment | 0.00 | 0.05 | 0.06 | 0.05 | 0.09 | |||||||||||||||
| Impairment | — | — | — | — | — | |||||||||||||||
| Revaluation of biological assets | — | — | — | — | — | |||||||||||||||
| Contract termination costs | — | — | 0.04 | — | 0.04 | |||||||||||||||
| Restructuring and termination costs | — | — | 0.01 | — | 0.01 | |||||||||||||||
| Energy: France | (0.00 | ) | 0.00 | — | 0.00 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | 0.00 | — | 0.00 | — | |||||||||||||||
| Other Idling Costs | 0.00 | 0.01 | — | 0.01 | — | |||||||||||||||
| (Loss) profit on disposal of non-core businesses | — | — | — | — | — | |||||||||||||||
| Adjusted diluted (loss) profit per ordinary share | $ | (0.07 | ) | $ | (0.22 | ) | $ | (0.13 | ) | $ | (0.30 | ) | $ | (0.26 | ) | |||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Date: August 31, 2020 | ||
| FERROGLOBE PLC | ||
| by | /s/ Marco Levi | |
| Name: Marco Levi | ||
| Title: Chief Executive Officer (Principal Executive Officer) | ||
FAQ
What were Ferroglobe's sales in Q2 2020?
How did Ferroglobe's net loss in Q2 2020 compare to Q1 2020?
What was Ferroglobe's adjusted EBITDA for Q2 2020?
How much gross debt did Ferroglobe have at the end of Q2 2020?
What impact did COVID-19 have on Ferroglobe's business in Q2 2020?
