- Posted adjusted EBITDA of
$25.8 million for the first quarter of 2024 - Net cash positive for the first time in the Company’s history; all-time low gross debt of
$81 million - Initiated a quarterly cash dividend of
$0.013 per share, paid onMarch 28, 2024 ; announcing a second quarter dividend of$0.013 per share, payable onJune 27 - Board approved stock buyback program; shareholder vote to approve buyback scheduled for
June 2024 AGM - Successfully restarted French operations on
April 1, 2024 , with all furnaces running - Applying for permit to expand silicon metal production in the
U.S. to address strong secular trends in solar and EV batteries - Signed a memorandum of understanding with Coreshell, followed by an investment post-quarter after strong test results in our lab
Financial Highlights
% | % | ||||||||||||||
($ in millions, except EPS) | Q1 2024 | Q4 2023 | Q/Q | Q1 2023 | Y/Y | ||||||||||
Sales | $ | 391.9 | $ | 376.0 | 4% | $ | 400.9 | (2%) | |||||||
Net (loss) income | $ | (2.0 | ) | $ | (11.1 | ) | 82% | $ | 21.0 | (110%) | |||||
Adjusted diluted EPS | $ | — | $ | 0.07 | 82% | $ | 0.05 | (110%) | |||||||
Adj. EBITDA | $ | 25.8 | $ | 60.3 | (57%) | $ | 44.8 | (42%) | |||||||
Operating cash flow | $ | 198.0 | $ | 25.1 | 688% | $ | 134.8 | 47% | |||||||
Capital expenditures1 | $ | 18.2 | $ | 25.5 | (29%) | $ | 18.0 | 1% | |||||||
Free cash flow2 | $ | 179.8 | $ | (0.4 | ) | (45.509%) | $ | 116.8 | 54% | ||||||
(1) Cash outflows for capital expenditures | |||||||||||||||
(2) Free cash flow is calculated as operating cash flow less capital expenditures |
Dr.
“As we position the Company to exploit the strong anticipated demand in silicon metal to address the solar and EV battery markets, we are in the process of applying for a permit to expand our silicon metal operations in
“The indices across all our businesses are up from the lows. While the initial improvement in prices was driven by supply-related issues, these prices have held strong and we are starting to see some signs of fundamental improvements in demand in the
Consolidated Sales
In the first quarter of 2024,
Product Category Highlights
Silicon Metal
( | Q1 2024 | Q4 2023 | % Q/Q | Q1 2023 | % Y/Y | ||||||||||||
Shipments in metric tons: | 53,183 | 49,761 | 6.9 | % | 36,942 | 44.0 | % | ||||||||||
Average selling price ($/MT): | 3,155 | 3,371 | (6.4 | )% | 4,351 | (27.5 | )% | ||||||||||
Silicon Metal Revenue | 167,792 | 167,744 | 0.0 | % | 160,735 | 4.4 | % | ||||||||||
Silicon Metal Adj.EBITDA | 16,071 | 22,188 | (27.6 | )% | 31,120 | (48.4 | )% | ||||||||||
Silicon Metal Adj.EBITDA Margin | 9.6 | % | 13.2 | % | 19.4 | % |
Silicon metal revenue in the first quarter was
Silicon-Based Alloys
( | Q1 2024 | Q4 2023 | % Q/Q | Q1 2023 | % Y/Y | ||||||||||||
Shipments in metric tons: | 51,171 | 46,446 | 10.2 | % | 49,100 | 4.2 | % | ||||||||||
Average selling price ($/MT): | 2,188 | 2,300 | (4.9 | )% | 2,756 | (20.6 | )% | ||||||||||
Silicon-based Alloys Revenue | 111,962 | 106,826 | 4.8 | % | 135,320 | (17.3 | )% | ||||||||||
Silicon-based Alloys Adj.EBITDA | 14,412 | 34,973 | (58.8 | )% | 21,924 | (34.3 | )% | ||||||||||
Silicon-based Alloys Adj.EBITDA Margin | 12.9 | % | 32.7 | % | 16.2 | % |
Silicon-based alloy revenue in the first quarter was
Manganese-Based Alloys
( | Q1 2024 | Q4 2023 | % Q/Q | Q1 2023 | % Y/Y | ||||||||||||
Shipments in metric tons: | 62,320 | 61,404 | 1.5 | % | 46,867 | 33.0 | % | ||||||||||
Average selling price ($/MT): | 1,066 | 985 | 8.2 | % | 1,316 | (19.0 | )% | ||||||||||
Manganese-based Alloys Revenue | 66,433 | 60,483 | 9.8 | % | 61,677 | 7.7 | % | ||||||||||
Manganese-based Alloys Adj.EBITDA | 5,520 | 23,886 | (76.9 | )% | 2,043 | 170.2 | % | ||||||||||
Manganese-based Alloys Adj.EBITDA Margin | 8.3 | % | 39.5 | % | 3.3 | % |
Manganese-based alloy revenue in the first quarter was
Raw materials and energy consumption for production
Raw materials and energy consumption for production was
Net (Loss) Income Attributable to the Parent
In the first quarter of 2024, net loss attributable to the parent was
Adjusted EBITDA
In the first quarter of 2024, adjusted EBITDA was
Total Cash,
% | |||||||||||||||||||
($ in millions) | Q1 2024 | Q4 2023 | $ | % | Q1 2023 | $ | Y/Y | ||||||||||||
Total Cash | $ | 159.8 | $ | 137.6 | 22 | 16% | $ | 344.2 | (184) | (54%) | |||||||||
Adjusted Gross Debt1 | 80.8 | 238.5 | (158) | (66%) | 399.7 | (319) | (80%) | ||||||||||||
$ | (79.0 | ) | $ | (100.9 | ) | 22 | 22% | $ | 55.5 | (134) | (242%) | ||||||||
$ | 487.5 | $ | 510.7 | (23) | (5%) | $ | 582.3 | (95) | (16%) | ||||||||||
(1) Adjusted gross debt excludes bank borrowings on factoring program and impact of leasing standard IFRS16 for each of the periods presented |
The total cash balance was
During the first quarter of 2024, we generated
Total working capital was
Enhanced Capital Return Policy
The company paid a quarterly cash dividend of
Conference Call
To join via phone:
Conference call participants should pre-register using this link:
https://register.vevent.com/register/BI3710d5099e3c4756b47a1496c71ce9ab
Once registered, you will receive the dial-in numbers and a personal PIN, which are required to access the conference call.
To join via webcast:
A simultaneous audio webcast, and replay will be accessible here:
https://edge.media-server.com/mmc/p/ur2yewsw
About Ferroglobe
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of
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.
Non-IFRS Measures
This document may contain summarized, non-audited or non-GAAP financial information. The information contained herein should therefore be considered as a whole and in conjunction with all the public information regarding the Company available, including any other documents released by the Company that may contain more detailed information. Adjusted EBITDA, adjusted EBITDA as a percentage of sales, working capital as a percentage of sales, adjusted EBITDA margin, working capital, adjusted net profit, adjusted profit per share, adjusted gross debt and net cash/debt, are non-IFRS financial metrics that management uses in its decision making.
INVESTOR CONTACT:
Vice President, Investor Relations
Email: investor.relations@ferroglobe.com
MEDIA CONTACT:
Executive Director, Communications & Public Affairs
Email: corporate.comms@ferroglobe.com
Unaudited Condensed Consolidated Income Statement (in thousands of | |||||||||||
For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | |||||||||
Sales | $ | 391,854 | $ | 375,951 | $ | 400,868 | |||||
Raw materials and energy consumption for production | (257,357 | ) | (199,911 | ) | (255,036 | ) | |||||
Energy consumption for production (PPA impact) | (1,932 | ) | 339 | 23,193 | |||||||
Other operating income | 10,836 | 34,944 | 14,814 | ||||||||
Staff costs | (70,519 | ) | (79,761 | ) | (67,543 | ) | |||||
Other operating expense | (52,348 | ) | (73,071 | ) | (54,145 | ) | |||||
Depreciation and amortization charges | (18,669 | ) | (20,090 | ) | (17,990 | ) | |||||
Impairment (loss) gain | — | (23,614 | ) | 246 | |||||||
Other gain (loss) | 696 | (563 | ) | 47 | |||||||
Operating profit | 2,561 | 14,224 | 44,454 | ||||||||
Net finance income (expense) | (7,669 | ) | (12,331 | ) | (10,980 | ) | |||||
Exchange differences | 1,383 | (4,897 | ) | 1,455 | |||||||
(Loss) profit before tax | (3,725 | ) | (3,004 | ) | 34,929 | ||||||
Income tax (expense) benefit | 1,155 | (4,160 | ) | (9,461 | ) | ||||||
Total (Loss) profit for the period | (2,570 | ) | (7,164 | ) | 25,468 | ||||||
(Loss) profit attributable to the parent | $ | (2,024 | ) | $ | (11,118 | ) | $ | 20,991 | |||
(Loss) profit attributable to non-controlling interest | (546 | ) | 3,954 | 4,477 | |||||||
EBITDA | $ | 22,613 | $ | 29,417 | $ | 63,899 | |||||
Adjusted EBITDA | $ | 25,803 | $ | 60,262 | $ | 44,767 | |||||
Weighted average shares outstanding | |||||||||||
Basic | 187,927 | 187,872 | 187,873 | ||||||||
Diluted | 187,927 | 187,872 | 189,629 | ||||||||
Profit (loss) per ordinary share | |||||||||||
Basic | $ | (0.01 | ) | $ | (0.06 | ) | $ | 0.11 | |||
Diluted | $ | (0.01 | ) | $ | (0.06 | ) | $ | 0.11 |
Unaudited Condensed Consolidated Statement of Financial Position (in thousands of | |||||||||||
As of | As of | As of | |||||||||
2024 | 2023 | 2023 | |||||||||
ASSETS | |||||||||||
Non-current assets | |||||||||||
$ | 29,702 | $ | 29,702 | $ | 29,702 | ||||||
Intangible assets | 193,592 | 138,345 | 223,447 | ||||||||
Property, plant and equipment | 500,940 | 501,396 | 497,557 | ||||||||
Other financial assets | 13,944 | 19,792 | 14,702 | ||||||||
Deferred tax assets | 10,636 | 8,760 | 7,123 | ||||||||
Receivables from related parties | 1,622 | 1,658 | 2,915 | ||||||||
Other non-current assets | 21,770 | 22,156 | 19,297 | ||||||||
Restricted cash and cash equivalents | — | — | 2,175 | ||||||||
Total non-current assets | 772,206 | 721,809 | 796,918 | ||||||||
Current assets | |||||||||||
Inventories | 361,602 | 383,841 | 417,042 | ||||||||
Trade and other receivables | 303,942 | 310,243 | 312,452 | ||||||||
Receivables from related parties | 2,712 | 2,772 | 2,728 | ||||||||
Current income tax assets | 10,740 | 15,977 | 7,652 | ||||||||
Other financial assets | 2 | 2 | 2 | ||||||||
Other current assets | 27,894 | 186,477 | 26,914 | ||||||||
Assets and disposal groups classified as held for sale | — | — | 1,088 | ||||||||
Restricted cash and cash equivalents | 298 | 1,179 | 2,411 | ||||||||
Cash and cash equivalents | 159,470 | 136,470 | 339,611 | ||||||||
Total current assets | 866,660 | 1,036,961 | 1,109,900 | ||||||||
Total assets | $ | 1,638,866 | $ | 1,758,770 | $ | 1,906,818 | |||||
EQUITY AND LIABILITIES | |||||||||||
Equity | $ | 843,702 | $ | 869,886 | $ | 658,490 | |||||
Non-current liabilities | |||||||||||
Deferred income | 77,185 | 26,980 | 128,125 | ||||||||
Provisions | 22,102 | 19,970 | 25,027 | ||||||||
Provision for pensions | 29,293 | 29,805 | 25,910 | ||||||||
Bank borrowings | 14,643 | 14,913 | 15,590 | ||||||||
Lease liabilities | 54,361 | 20,304 | 11,744 | ||||||||
Debt instruments | — | 149,015 | 304,621 | ||||||||
Other financial liabilities | 68,186 | 65,231 | 39,276 | ||||||||
Other obligations | 1,536 | 35,883 | 36,310 | ||||||||
Other non-current liabilities | 224 | 199 | 22 | ||||||||
Deferred tax liabilities | 30,253 | 32,582 | 35,272 | ||||||||
Total non-current liabilities | 297,783 | 394,882 | 621,897 | ||||||||
Current liabilities | |||||||||||
Provisions | 127,533 | 122,757 | 146,308 | ||||||||
Provision for pensions | 165 | 169 | 193 | ||||||||
Bank borrowings | 42,762 | 31,635 | 31,462 | ||||||||
Lease liabilities | 12,297 | 8,083 | 7,492 | ||||||||
Debt instruments | — | 5,765 | 4,688 | ||||||||
Other financial liabilities | 15,190 | 16,052 | 123,281 | ||||||||
Payables to related parties | 3,527 | 2,429 | 2,377 | ||||||||
Trade and other payables | 178,038 | 183,375 | 147,150 | ||||||||
Current income tax liabilities | 6,262 | 8,351 | 48,326 | ||||||||
Other obligations | 11,999 | 14,183 | 18,790 | ||||||||
Other current liabilities | 99,608 | 101,203 | 96,364 | ||||||||
Total current liabilities | 497,381 | 494,002 | 626,431 | ||||||||
Total equity and liabilities | $ | 1,638,866 | $ | 1,758,770 | $ | 1,906,818 |
Unaudited Condensed Consolidated Statement of Cash Flows | |||||||||||
For the Three Months Ended | For the Three Months Ended | For the Three Months Ended | |||||||||
Cash flows from operating activities: | |||||||||||
(Loss) profit for the period | $ | (2,570 | ) | $ | (7,164 | ) | $ | 25,468 | |||
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: | |||||||||||
Income tax (benefit) expense | (1,155 | ) | 4,160 | 9,461 | |||||||
Depreciation and amortization charges | 18,669 | 20,090 | 17,990 | ||||||||
Net finance expense | 7,669 | 12,331 | 10,980 | ||||||||
Exchange differences | (1,383 | ) | 4,897 | (1,455 | ) | ||||||
Impairment loss (gain) | — | 23,614 | (246 | ) | |||||||
Share-based compensation | 928 | 683 | 1,905 | ||||||||
Other loss (gain) | (696 | ) | 562 | (47 | ) | ||||||
Changes in operating assets and liabilities | |||||||||||
Decrease (increase) in inventories | 19,011 | (1,746 | ) | 86,275 | |||||||
Decrease (increase) in trade receivables | 320 | (5,399 | ) | 118,714 | |||||||
(Decrease) increase in trade payables | (1,925 | ) | 2,879 | (73,864 | ) | ||||||
Other changes in operating assets and liabilities | 154,596 | (17,067 | ) | (44,100 | ) | ||||||
Income taxes (paid) received | 4,580 | (12,701 | ) | (16,298 | ) | ||||||
Net cash provided by (used in ) operating activities: | 198,044 | 25,139 | 134,783 | ||||||||
Cash flows from investing activities: | |||||||||||
Interest and finance income received | 741 | 1,349 | 668 | ||||||||
Payments due to investments: | |||||||||||
Intangible assets | (584 | ) | (1,331 | ) | — | ||||||
Property, plant and equipment | (17,641 | ) | (24,204 | ) | (17,960 | ) | |||||
Disposals: | |||||||||||
Other non-current assets | — | 935 | — | ||||||||
Net cash used in by investing activities | (17,484 | ) | (23,251 | ) | (17,292 | ) | |||||
Cash flows from financing activities: | |||||||||||
Dividends paid | (2,438 | ) | — | — | |||||||
Proceeds from debt issuance | (147,624 | ) | — | — | |||||||
Repayment of debt instruments | — | (1,050 | ) | (26,283 | ) | ||||||
Increase/(decrease) in bank borrowings: | |||||||||||
Borrowings | 94,611 | 39,239 | 109,762 | ||||||||
Payments | (83,012 | ) | (58,052 | ) | (141,900 | ) | |||||
Payments for lease liabilities | (2,973 | ) | (3,309 | ) | (2,247 | ) | |||||
Other (payments) receipts from financing activities | (192 | ) | (4,289 | ) | (17,377 | ) | |||||
Interest paid | (14,634 | ) | (2,923 | ) | (18,192 | ) | |||||
Net cash (used in) provided by financing activities | (156,262 | ) | (30,384 | ) | (96,237 | ) | |||||
Total net (decrease) increase in cash and cash equivalents | 24,298 | (28,496 | ) | 21,254 | |||||||
Beginning balance of cash and cash equivalents | 137,649 | 165,973 | 322,943 | ||||||||
Exchange differences on cash and cash equivalents in foreign currencies | (2,179 | ) | 172 | — | |||||||
Ending balance of cash and cash equivalents | $ | 159,768 | $ | 137,649 | $ | 344,197 | |||||
Restricted cash and cash equivalents | 298 | 1,179 | 4,586 | ||||||||
Cash and cash equivalents | 159,470 | 136,470 | 339,611 | ||||||||
Ending balance of cash and cash equivalents | $ | 159,768 | $ | 137,649 | $ | 344,197 |
Adjusted EBITDA ($,000):
Q1´24 | Q4´23 | Q1´23 | |||||||||
Profit (loss) attributable to the parent | $ | (2,024 | ) | $ | (11,118 | ) | $ | 20,991 | |||
Profit (loss) attributable to non-controlling interest | (546 | ) | 3,954 | 4,477 | |||||||
Income tax (benefit) expense | (1,155 | ) | 4,160 | 9,461 | |||||||
Net finance expense | 7,669 | 12,331 | 10,980 | ||||||||
Depreciation and amortization charges | 18,669 | 20,090 | 17,990 | ||||||||
EBITDA | 22,613 | 29,417 | 63,899 | ||||||||
Exchange differences | (1,383 | ) | 4,897 | (1,455 | ) | ||||||
Impairment | — | 23,614 | (246 | ) | |||||||
New strategy implementation | 1,361 | (1,000 | ) | 2,049 | |||||||
Subactivity | 942 | 2,995 | 3,713 | ||||||||
PPA Energy | 2,270 | 339 | (23,193 | ) | |||||||
Adjusted EBITDA | $ | 25,803 | $ | 60,262 | $ | 44,767 |
Adjusted profit attributable to
Q1´24 | Q4´23 | Q1´23 | |||||||||
(Loss) profit attributable to the parent | $ | (2,024 | ) | $ | (11,118 | ) | $ | 20,991 | |||
Tax rate adjustment | 17 | 4,959 | (599 | ) | |||||||
Impairment | — | 17,333 | (175 | ) | |||||||
New strategy implementation | 933 | (734 | ) | 1,459 | |||||||
Subactivity | 646 | 2,198 | 2,644 | ||||||||
PPA Energy | 1,556 | 249 | (16,513 | ) | |||||||
Adjusted profit attributable to the parent | $ | 1,168 | $ | 12,887 | $ | 7,807 |
Adjusted diluted profit per share:
Q1´24 | Q4´23 | Q1´23 | |||||||||
Diluted (loss) profit per ordinary share | $ | (0.01 | ) | $ | (0.06 | ) | $ | 0.11 | |||
Tax rate adjustment | 0.00 | 0.03 | (0.00 | ) | |||||||
Impairment | — | 0.09 | (0.00 | ) | |||||||
New strategy implementation | 0.00 | — | 0.01 | ||||||||
Subactivity | 0.00 | 0.01 | 0.01 | ||||||||
PPA Energy | 0.01 | 0.00 | (0.09 | ) | |||||||
Adjusted diluted (loss) profit per ordinary share | $ | — | $ | 0.07 | $ | 0.05 |
Source:
2024 GlobeNewswire, Inc., source