Ferroglobe Reports Results for the Third Quarter of 2020
Ferroglobe reported Q3 2020 sales of $262.7 million, a 5.1% increase from $250.0 million in Q2 2020 but a decline from $381.7 million in Q3 2019. The company faced a net loss of $(46.8) million, worsened by a $34.3 million impairment charge. Adjusted EBITDA was $22.2 million, slightly down from Q2 2020. Total shipments rose 3.5% from the prior quarter. Gross debt decreased to $442 million. The CEO highlighted ongoing initiatives to strengthen the company's financial position amid COVID-19 challenges.
- Q3 2020 sales increased by 5.1% to $262.7 million from $250.0 million in Q2 2020.
- Adjusted EBITDA of $22.2 million, an 8.5% margin, shows stability compared to Q2 2020.
- Successful refinancing of previous accounts receivable securitization program improved financial terms.
- Net loss of $(46.8) million, significantly higher than $(14.0) million in Q2 2020.
- Impairment charge of $34.3 million negatively impacts financial results.
- Total shipments declined by 34.1% compared to Q3 2019.
Sales of $262.7 million; Net loss of $(46.8) million; Adjusted EBITDA of
- Q3 sales of
$262.7 million compared to$250.0 million in Q2 2020, and$381.7 million in Q3 2019 - Adjusted EBITDA of
$22.2 million compared to$22.4 million in Q2 2020 and$(7.2) million in Q3 2019 - Q3 net loss of
$(46.8) million compared to$(14.0) million in Q2 2020, and$(140.1) million in Q3 2019. Q3 net loss includes a property, plant and equipment impairment charge of$34.3 million - Gross debt of
$442 million at the end of Q3 2020, compared to$451 million at the end of Q2 2020 - Positive operating cash flow of
$23.0 million , partially offset by the senior unsecured notes coupon payment of$(16.4) million and partial ABL paydown of$(7.8) million - Successful refinancing of the prior accounts receivable securitization program on October 2, 2020 with the signing of a new factoring program, providing an improvement in financial terms and cash release at closing
LONDON, Nov. 23, 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 third quarter of 2020.
Q3 2020 Earnings Highlights
In Q3 2020, Ferroglobe posted a net loss of
Q3 2020 reported EBITDA was
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| $,000 (unaudited) | September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | |||||||||||||||
| Sales | $ | 262,673 | $ | 250,004 | $ | 381,745 | $ | 823,899 | $ | 1,238,615 | ||||||||||
| Net (loss) profit | $ | (46,834 | ) | $ | (14,035 | ) | $ | (140,139 | ) | $ | (109,927 | ) | $ | (212,351 | ) | |||||
| Diluted EPS | $ | (0.28 | ) | $ | (0.07 | ) | $ | (0.83 | ) | $ | (0.63 | ) | $ | (1.23 | ) | |||||
| Adjusted net (loss) income attributable to the parent | $ | (9,332 | ) | $ | (11,064 | ) | $ | (16,084 | ) | $ | (58,108 | ) | $ | (60,200 | ) | |||||
| Adjusted diluted EPS | $ | (0.14 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.36 | ) | |||||
| Adjusted EBITDA | $ | 22,231 | $ | 22,413 | $ | (7,210 | ) | $ | 27,027 | $ | 1,152 | |||||||||
| Adjusted EBITDA margin | 8.5 | % | 9.0 | % | -1.9 | % | 3.3 | % | 0.1 | % | ||||||||||
Marco Levi, Ferroglobe’s Chief Executive Officer, commented, “The third quarter results are a confirmation of the swift actions we have been taking throughout the year to address the unpredictable circumstances created by COVID-19. By aligning our cost structure with changes in market conditions this quarter’s financial performance remained stable.” Dr. Levi added, “We continue to seek ways to bolster our agility in the face of the pandemic to ensure the company is well capitalized and positioned for a market recovery. Our new strategic plan focuses on elements within our control and aims to improve our overall competitiveness. During the quarter we made significant progress setting the foundation throughout the organization and have started on the execution of specific initiatives across various functional areas.”
Cash Flow and Balance Sheet
Cash generated from operations during Q3 2020 was
Working capital increased by
Gross debt was
Beatriz García-Cos, Ferroglobe’s Chief Financial Officer, commented, “Given the challenging market backdrop and lingering uncertainty we remain focused on cash generation and preservation. We are making adjustments throughout the business to ensure a sustainable level of cash to support our operations and have managed this through a number of initiatives, including a successful refinancing of the prior accounts receivables securitization program. At the same time we continued to reduce our debt balance during the quarter.” Ms. García-Cos added, “The new strategic plan supports our focus on further cost reduction and improvement in cash conversion, while accelerating the Company’s return to profitability.”
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.
During the third quarter demand for our products was adversely impacted by COVID-19. It is difficult to forecast all the impacts of the COVID-19 pandemic, and such impacts might have a material adverse effect on our business, results of operations and financial condition. 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.
Additionally, the indenture governing the senior unsecured notes includes provisions which, in the event of a change of control, would require the Company to offer to redeem the outstanding senior unsecured notes at a cash purchase price equal to
Subsequent events
On October 2, 2020, the Company signed a factoring agreement, replacing the prior accounts receivables securitization program. At closing, there was cash release of
On November 1, 2020, the Company announced the appointment of Thomas Wiesner as Chief Legal Officer. Subsequently, Mr. Wiesner was also appointed as the Secretary to the Board of Directors.
On November 16, 2020, the Tribunal Superior de Justicia of Galicia dismissed FerroAtlántica’s claim of petition to separate the metallurgical plants of Cee and Dumbria from the related hydroelectric power plants. According to applicable law, this judgment can be appealed before the Spanish Supreme Court.
Discussion of Third Quarter 2020 Results
The Company has concluded that there are indications for potential impairment of goodwill property, plant and equipment and deferred tax assets. During the third quarter, the Company registered an impairment relating to the Niagara Falls facility as there are no plans to restart production. The Company is conducting, the rest of its impairment analysis and as such further material impairment relating to goodwill and/or the remaining property, plant and equipment and deferred tax assets could be identified and recorded subsequently. The financial results presented for the third quarter and year to date as of September 30, 2020 are unaudited and may be subsequently adjusted for items including impairment of goodwill and/or property, plant and equipment.
Sales
Sales for Q3 2020 were
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||||||
| September 30, 2020 | June 30, 2020 | Change | September 30, 2019 | Change | September 30, 2020 | September 30, 2019 | Change | |||||||||||||||||
| Shipments in metric tons: | ||||||||||||||||||||||||
| Silicon Metal | 51,215 | 47,884 | 7.0 | % | 60,225 | -15.0 | % | 152,420 | 176,578 | -13.7 | % | |||||||||||||
| Silicon-based Alloys | 42,449 | 39,479 | 7.5 | % | 69,879 | -39.3 | % | 142,860 | 230,944 | -38.1 | % | |||||||||||||
| Manganese-based Alloys | 53,980 | 55,290 | -2.4 | % | 93,996 | -42.6 | % | 182,995 | 297,221 | -38.4 | % | |||||||||||||
| Total shipments* | 147,644 | 142,653 | 3.5 | % | 224,100 | -34.1 | % | 478,275 | 704,743 | -32.1 | % | |||||||||||||
| Average selling price ($/MT): | ||||||||||||||||||||||||
| Silicon Metal | $ | 2,248 | $ | 2,215 | 1.5 | % | $ | 2,175 | 3.3 | % | $ | 2,225 | $ | 2,284 | -2.6 | % | ||||||||
| Silicon-based Alloys | $ | 1,534 | $ | 1,537 | -0.2 | % | $ | 1,490 | 3.0 | % | $ | 1,510 | $ | 1,582 | -4.6 | % | ||||||||
| Manganese-based Alloys | $ | 1,009 | $ | 1,088 | -7.2 | % | $ | 1,140 | -11.5 | % | $ | 1,019 | $ | 1,167 | -12.7 | % | ||||||||
| Total* | $ | 1,590 | $ | 1,591 | -0.1 | % | $ | 1,527 | 4.1 | % | $ | 1,550 | $ | 1,583 | -2.1 | % | ||||||||
| Average selling price ($/lb.): | ||||||||||||||||||||||||
| Silicon Metal | $ | 1.02 | $ | 1.00 | 1.5 | % | $ | 0.99 | 3.3 | % | $ | 1.01 | $ | 1.04 | -2.6 | % | ||||||||
| Silicon-based Alloys | $ | 0.70 | $ | 0.70 | -0.2 | % | $ | 0.68 | 3.0 | % | $ | 0.68 | $ | 0.72 | -4.6 | % | ||||||||
| Manganese-based Alloys | $ | 0.46 | $ | 0.49 | -7.2 | % | $ | 0.52 | -11.5 | % | $ | 0.46 | $ | 0.53 | -12.7 | % | ||||||||
| Total* | $ | 0.72 | $ | 0.72 | 0.0 | % | $ | 0.69 | 4.1 | % | $ | 0.70 | $ | 0.72 | -2.1 | % | ||||||||
* Excludes by-products and other
Sales Prices & Volumes By Product
During Q3 2020, total product average selling prices decreased by
Sales volumes in Q3 declined by
Cost of Sales
Cost of sales was
Other Operating Expenses
Other operating expenses amounted to
Net Loss Attributable to the Parent
In Q3 2020, net loss attributable to the Parent was
Adjusted EBITDA
In Q3 2020, adjusted EBITDA was
Conference Call
Ferroglobe management will review the third quarter during a conference call at 9:00 a.m. Eastern Time on November 24, 2020.
The dial-in number for participants in the United States is 8772935491 (conference ID 9939707). International callers should dial +1 9144958526 (conference ID 9939707). 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/itnuz76f
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
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 | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
| Sales | $ | 262,673 | $ | 250,004 | $ | 381,745 | $ | 823,899 | $ | 1,238,615 | ||||||||||
| Cost of sales | (166,231 | ) | (153,291 | ) | (277,692 | ) | (562,882 | ) | (899,492 | ) | ||||||||||
| Other operating income | 7,598 | 10,160 | 13,215 | 25,526 | 41,766 | |||||||||||||||
| Staff costs | (56,329 | ) | (48,912 | ) | (72,536 | ) | (160,338 | ) | (221,651 | ) | ||||||||||
| Other operating expense | (26,896 | ) | (35,953 | ) | (50,060 | ) | (102,915 | ) | (166,901 | ) | ||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | (26,524 | ) | (27,459 | ) | (29,591 | ) | (82,651 | ) | (90,165 | ) | ||||||||||
| Impairment losses | (34,269 | ) | — | (174,018 | ) | (34,269 | ) | (175,353 | ) | |||||||||||
| Other gain (loss) | 1,212 | 85 | (3,774 | ) | 625 | (3,896 | ) | |||||||||||||
| Operating (loss) profit | (38,766 | ) | (5,365 | ) | (212,711 | ) | (93,005 | ) | (277,077 | ) | ||||||||||
| Net finance expense | (13,985 | ) | (16,693 | ) | (16,491 | ) | (47,162 | ) | (45,361 | ) | ||||||||||
| Financial derivatives (loss) gain | — | — | 2,913 | 3,168 | 3,882 | |||||||||||||||
| Exchange differences | 13,157 | 2,633 | (5,083 | ) | 18,226 | (1,482 | ) | |||||||||||||
| (Loss) profit before tax | (39,594 | ) | (19,425 | ) | (231,372 | ) | (118,773 | ) | (320,038 | ) | ||||||||||
| Income tax benefit (expense) | (1,841 | ) | 5,390 | 14,322 | 14,245 | 27,422 | ||||||||||||||
| (Loss) profit for the period from continuing operations | (41,435 | ) | (14,035 | ) | (217,050 | ) | (104,528 | ) | (292,616 | ) | ||||||||||
| Profit for the period from discontinued operations | (5,399 | ) | — | 76,911 | (5,399 | ) | 80,265 | |||||||||||||
| (Loss) profit for the period | (46,834 | ) | (14,035 | ) | (140,139 | ) | (109,927 | ) | (212,351 | ) | ||||||||||
| Loss (profit) attributable to non-controlling interest | (450 | ) | 1,928 | (385 | ) | 2,638 | 4,174 | |||||||||||||
| (Loss) profit attributable to the parent | $ | (47,284 | ) | $ | (12,107 | ) | $ | (140,524 | ) | $ | (107,289 | ) | $ | (208,177 | ) | |||||
| EBITDA | $ | (12,242 | ) | $ | 22,093 | $ | (183,120 | ) | $ | (10,354 | ) | $ | (186,912 | ) | ||||||
| Adjusted EBITDA | $ | 22,231 | $ | 22,413 | $ | (7,210 | ) | $ | 27,027 | $ | 1,152 | |||||||||
| Weighted average shares outstanding | ||||||||||||||||||||
| Basic | 169,261 | 169,254 | 169,123 | 169,261 | 169,123 | |||||||||||||||
| Diluted | 169,261 | 169,254 | 169,123 | 169,261 | 169,123 | |||||||||||||||
| (Loss) profit per ordinary share | ||||||||||||||||||||
| Basic | $ | (0.28 | ) | $ | (0.07 | ) | $ | (0.83 | ) | $ | (0.63 | ) | $ | (1.23 | ) | |||||
| Diluted | $ | (0.28 | ) | $ | (0.07 | ) | $ | (0.83 | ) | $ | (0.63 | ) | $ | (1.23 | ) | |||||
Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)
| September 30, | June 30, | December 31, | ||||||||
| 2020 | 2020 | 2019 | ||||||||
| ASSETS | ||||||||||
| Non-current assets | ||||||||||
| Goodwill | $ | 29,702 | $ | 29,702 | $ | 29,702 | ||||
| Other intangible assets | 18,876 | 45,655 | 51,267 | |||||||
| Property, plant and equipment | 640,211 | 677,081 | 740,906 | |||||||
| Other non-current financial assets | 6,227 | 6,404 | 2,618 | |||||||
| Deferred tax assets | 50,939 | 43,102 | 59,551 | |||||||
| Non-current receivables from related parties | 2,343 | 2,240 | 2,247 | |||||||
| Other non-current assets | 4,960 | 4,228 | 1,597 | |||||||
| Non-current restricted cash and cash equivalents | 28,551 | 28,366 | 28,323 | |||||||
| Total non-current assets | 781,809 | 836,778 | 916,211 | |||||||
| Current assets | ||||||||||
| Inventories | 311,269 | 305,438 | 354,121 | |||||||
| Trade and other receivables | 179,432 | 172,036 | 309,064 | |||||||
| Current receivables from related parties | 3,055 | 2,955 | 2,955 | |||||||
| Current income tax assets | 11,264 | 12,151 | 27,930 | |||||||
| Other current financial assets | 2,360 | 4,791 | 5,544 | |||||||
| Other current assets | 18,199 | 22,602 | 23,676 | |||||||
| Cash and cash equivalents * | 118,874 | 124,876 | 94,852 | |||||||
| Total current assets | 644,453 | 644,849 | 818,142 | |||||||
| Total assets | $ | 1,426,262 | $ | 1,481,627 | $ | 1,734,353 | ||||
| EQUITY AND LIABILITIES | ||||||||||
| Equity | $ | 483,487 | $ | 519,974 | $ | 602,297 | ||||
| Non-current liabilities | ||||||||||
| Deferred income | 7,454 | 4,983 | 1,253 | |||||||
| Provisions | 84,779 | 81,659 | 84,852 | |||||||
| Bank borrowings | 31,958 | 92,552 | 144,388 | |||||||
| Lease liabilities | 12,655 | 13,512 | 16,972 | |||||||
| Debt instruments | 345,941 | 345,284 | 344,014 | |||||||
| Other financial liabilities | 32,554 | 33,316 | 43,157 | |||||||
| Other non-current liabilities | 16,678 | 25,785 | 25,906 | |||||||
| Deferred tax liabilities | 47,633 | 40,162 | 74,057 | |||||||
| Total non-current liabilities | 579,652 | 637,252 | 734,599 | |||||||
| Current liabilities | ||||||||||
| Provisions | 38,121 | 37,367 | 46,091 | |||||||
| Bank borrowings | 59,318 | 245 | 14,611 | |||||||
| Lease liabilities | 7,960 | 8,592 | 8,900 | |||||||
| Debt instruments | 2,697 | 10,994 | 10,937 | |||||||
| Other financial liabilities | 28,016 | 26,318 | 23,382 | |||||||
| Payables to related parties | 4,162 | 2,056 | 4,830 | |||||||
| Trade and other payables | 136,371 | 156,053 | 189,229 | |||||||
| Current income tax liabilities | 140 | 2,146 | 3,048 | |||||||
| Other current liabilities | 86,338 | 80,630 | 96,429 | |||||||
| Liabilities associated with assets classified as held for sale | — | — | — | |||||||
| Total current liabilities | 363,123 | 324,401 | 397,457 | |||||||
| Total equity and liabilities | $ | 1,426,262 | $ | 1,481,627 | $ | 1,734,353 | ||||
*Cash and cash equivalents at September 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 * | Nine Months Ended | Nine Months Ended * | ||||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||||
| Cash flows from operating activities: | ||||||||||||||||||||||
| (Loss) profit for the period | $ | (46,834 | ) | $ | (14,035 | ) | $ | (140,139 | ) | $ | (109,926 | ) | $ | (212,351 | ) | |||||||
| Adjustments to reconcile net (loss) profit to net cash used by operating activities: | — | |||||||||||||||||||||
| Income tax (benefit) expense | 1,841 | (5,390 | ) | (14,489 | ) | (14,245 | ) | (26,408 | ) | |||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 26,524 | 27,459 | 29,591 | 82,651 | 92,995 | |||||||||||||||||
| Net finance expense | 13,985 | 16,693 | 20,893 | 47,162 | 51,794 | |||||||||||||||||
| Financial derivatives loss (gain) | — | — | (2,913 | ) | (3,168 | ) | (3,882 | ) | ||||||||||||||
| Exchange differences | (13,157 | ) | (2,633 | ) | 5,083 | (18,226 | ) | 1,482 | ||||||||||||||
| Impairment losses | 34,269 | — | 174,018 | 34,269 | 175,353 | |||||||||||||||||
| Net loss (gain) due to changes in the value of asset | — | — | ||||||||||||||||||||
| Bargain purchase gain | — | — | — | — | — | |||||||||||||||||
| Gain on disposal of discontinued operation | 5,399 | — | (80,729 | ) | 5,399 | (80,729 | ) | |||||||||||||||
| Share-based compensation | 323 | 704 | 1,015 | 1,749 | 3,280 | |||||||||||||||||
| Other adjustments | (8,774 | ) | (85 | ) | 3,774 | (8,188 | ) | 3,896 | ||||||||||||||
| Changes in operating assets and liabilities | — | |||||||||||||||||||||
| (Increase) decrease in inventories | 3,725 | (12,471 | ) | 5,953 | 42,831 | (40,962 | ) | |||||||||||||||
| (Increase) decrease in trade receivables | (4,731 | ) | 45,537 | 5,568 | 124,638 | 1,623 | ||||||||||||||||
| Increase (decrease) in trade payables | (20,359 | ) | (4,875 | ) | (10,693 | ) | (50,738 | ) | (12,035 | ) | ||||||||||||
| Other | 31,410 | (16,287 | ) | (59,689 | ) | 3,525 | (21,430 | ) | ||||||||||||||
| Income taxes paid | (633 | ) | 3,522 | (846 | ) | 13,008 | (3,066 | ) | ||||||||||||||
| Net cash provided (used) by operating activities | 22,988 | 38,139 | (63,603 | ) | 150,741 | (70,440 | ) | |||||||||||||||
| Cash flows from investing activities: | ||||||||||||||||||||||
| Interest and finance income received | 278 | 85 | 626 | 617 | 1,502 | |||||||||||||||||
| Payments due to investments: | - | |||||||||||||||||||||
| Acquisition of subsidiary | — | — | 9,088 | — | 9,088 | |||||||||||||||||
| Other intangible assets | — | — | — | — | (184 | ) | ||||||||||||||||
| Property, plant and equipment | (8,734 | ) | (5,056 | ) | (6,269 | ) | (18,396 | ) | (26,845 | ) | ||||||||||||
| Other | — | — | — | — | (627 | ) | ||||||||||||||||
| Disposals: | — | |||||||||||||||||||||
| Disposal of subsidiaries | — | — | 171,058 | — | 171,058 | |||||||||||||||||
| Other non-current assets | 46 | — | — | 46 | — | |||||||||||||||||
| Other | — | — | 19 | — | 3,416 | |||||||||||||||||
| Net cash (used) provided by investing activities | (8,410 | ) | (4,971 | ) | 174,522 | (17,733 | ) | 157,408 | ||||||||||||||
| Cash flows from financing activities: | ||||||||||||||||||||||
| Dividends paid | — | — | — | — | — | |||||||||||||||||
| Payment for debt issuance costs | (608 | ) | (279 | ) | (2,093 | ) | (2,463 | ) | (2,798 | ) | ||||||||||||
| Repayment of hydro leases | — | — | (55,352 | ) | — | (55,352 | ) | |||||||||||||||
| Repayment of other financial liabilities | — | — | — | — | — | |||||||||||||||||
| Increase/(decrease) in bank borrowings: | — | |||||||||||||||||||||
| Borrowings | 8,022 | — | — | 8,022 | 71,499 | |||||||||||||||||
| Payments | (7,800 | ) | (20,680 | ) | (21,038 | ) | (73,360 | ) | (60,101 | ) | ||||||||||||
| Proceeds from stock option exercises | — | — | — | — | — | |||||||||||||||||
| Amounts paid due to leases | (2,463 | ) | (2,418 | ) | — | (7,342 | ) | (22,268 | ) | |||||||||||||
| Other amounts received/(paid) due to financing activities | — | — | (9,324 | ) | 3,608 | — | ||||||||||||||||
| Payments to acquire or redeem own shares | — | — | — | — | — | |||||||||||||||||
| Interest paid | (17,130 | ) | (1,131 | ) | (18,713 | ) | (37,085 | ) | (40,562 | ) | ||||||||||||
| Net cash (used) provided by financing activities | (19,979 | ) | (24,508 | ) | (106,520 | ) | (108,620 | ) | (109,582 | ) | ||||||||||||
| Total net cash flows for the period | (5,401 | ) | 8,660 | 4,399 | 24,388 | (22,614 | ) | |||||||||||||||
| Beginning balance of cash and cash equivalents | 153,242 | 144,489 | 188,045 | 123,175 | 216,647 | |||||||||||||||||
| Exchange differences on cash and cash equivalents in foreign currencies | (416 | ) | 93 | (4,401 | ) | (138 | ) | (5,990 | ) | |||||||||||||
| Ending balance of cash and cash equivalents | $ | 147,425 | $ | 153,242 | $ | 188,043 | $ | 147,425 | $ | 188,043 | ||||||||||||
| Cash from continuing operations | 118,874 | 124,876 | 177,154 | 118,874 | 177,154 | |||||||||||||||||
| Non-current restricted cash and cash equivalents | 28,551 | 28,366 | 10,889 | 28,551 | 10,889 | |||||||||||||||||
| Cash and restricted cash in the statement of financial position | $ | 147,425 | $ | 153,242 | $ | 188,043 | $ | 147,425 | $ | 188,043 | ||||||||||||
* 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 | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
| (Loss) profit attributable to the parent | $ | (47,284 | ) | $ | (12,107 | ) | $ | (140,524 | ) | $ | (107,289 | ) | $ | (208,177 | ) | |||||
| (Loss) profit for the period from discontinued operations | 5,399 | — | (76,911 | ) | 5,399 | (80,265 | ) | |||||||||||||
| Loss (profit) attributable to non-controlling interest | 450 | (1,928 | ) | 385 | (2,638 | ) | (4,174 | ) | ||||||||||||
| Income tax (benefit) expense | 1,841 | (5,390 | ) | (14,322 | ) | (14,245 | ) | (27,422 | ) | |||||||||||
| Net finance expense | 13,985 | 16,693 | 16,491 | 47,162 | 45,361 | |||||||||||||||
| Financial derivatives loss (gain) | — | — | (2,913 | ) | (3,168 | ) | (3,882 | ) | ||||||||||||
| Exchange differences | (13,157 | ) | (2,633 | ) | 5,083 | (18,226 | ) | 1,482 | ||||||||||||
| Depreciation and amortization charges, operating allowances and write-downs | 26,524 | 27,459 | 29,591 | 82,651 | 90,165 | |||||||||||||||
| EBITDA | (12,242 | ) | 22,093 | (183,120 | ) | (10,354 | ) | (186,912 | ) | |||||||||||
| Impairment | 34,269 | — | 174,008 | 34,269 | 174,008 | |||||||||||||||
| Revaluation of biological assets | — | — | 1,080 | — | 1,080 | |||||||||||||||
| Contract termination costs | — | — | — | — | 9,260 | |||||||||||||||
| Restructuring and termination costs | — | — | — | — | 2,894 | |||||||||||||||
| Energy: France | — | (55 | ) | — | 70 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | — | — | 155 | — | |||||||||||||||
| Other Idling Costs | 204 | 375 | — | 2,887 | — | |||||||||||||||
| (Loss)profit on disposal of non-core businesses | — | — | 822 | — | 822 | |||||||||||||||
| Adjusted EBITDA | $ | 22,231 | $ | 22,413 | $ | (7,210 | ) | $ | 27,027 | $ | 1,152 | |||||||||
Adjusted profit attributable to Ferroglobe ($,000):
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
| (Loss) profit attributable to the parent | $ | (47,284 | ) | $ | (12,107 | ) | $ | (140,524 | ) | $ | (107,289 | ) | $ | (208,177 | ) | |||||
| Tax rate adjustment | 14,511 | 826 | 59,717 | 23,761 | 74,990 | |||||||||||||||
| Impairment | 23,303 | — | 118,325 | 23,303 | 118,325 | |||||||||||||||
| Revaluation of biological assets | — | — | 734 | — | 734 | |||||||||||||||
| Contract termination costs | — | — | — | — | 6,297 | |||||||||||||||
| Restructuring and termination costs | — | — | — | — | 1,968 | |||||||||||||||
| Energy: France | — | (37 | ) | — | 48 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | — | — | 105 | — | |||||||||||||||
| Other Idling Costs | 139 | 255 | — | 1,963 | — | |||||||||||||||
| (Loss) profit on disposal of non-core businesses | — | — | (54,337 | ) | — | (54,337 | ) | |||||||||||||
| Adjusted (loss) profit attributable to the parent | $ | (9,332 | ) | $ | (11,064 | ) | $ | (16,084 | ) | $ | (58,108 | ) | $ | (60,200 | ) | |||||
Adjusted diluted profit per share:
| Quarter Ended | Quarter Ended | Quarter Ended | Nine Months Ended | Nine Months Ended | ||||||||||||||||
| September 30, 2020 | June 30, 2020 | September 30, 2019 | September 30, 2020 | September 30, 2019 | ||||||||||||||||
| Diluted (loss) profit per ordinary share | $ | (0.28 | ) | $ | (0.07 | ) | $ | (0.83 | ) | $ | (0.63 | ) | $ | (1.23 | ) | |||||
| Tax rate adjustment | — | 0.00 | 0.35 | 0.14 | 0.44 | |||||||||||||||
| Impairment | 0.14 | — | 0.70 | 0.14 | 0.70 | |||||||||||||||
| Revaluation of biological assets | — | — | 0.00 | — | 0.00 | |||||||||||||||
| Contract termination costs | — | — | — | — | 0.04 | |||||||||||||||
| Restructuring and termination costs | — | — | — | — | 0.01 | |||||||||||||||
| Energy: France | — | (0.00 | ) | — | 0.00 | — | ||||||||||||||
| Energy: South Africa | — | — | — | — | — | |||||||||||||||
| Staff Costs: South Africa | — | — | — | 0.00 | — | |||||||||||||||
| Other Idling Costs | 0.00 | 0.00 | — | 0.01 | — | |||||||||||||||
| (Loss) profit on disposal of non-core businesses | — | — | (0.32 | ) | — | (0.32 | ) | |||||||||||||
| Adjusted diluted (loss) profit per ordinary share | $ | (0.14 | ) | $ | (0.07 | ) | $ | (0.10 | ) | $ | (0.35 | ) | $ | (0.36 | ) | |||||
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: November 23, 2020 | ||
| FERROGLOBE PLC | ||
| by | /s/ Marco Levi | |
| Name: Marco Levi | ||
| Title: Chief Executive Officer (Principal Executive Officer) | ||
FAQ
What were Ferroglobe's sales figures for Q3 2020?
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