Post Earnings Coverage as Ferroglobe’s Reported Q4 and Annual Results for FY16

Upcoming AWS Coverage on Fairmount Santrol Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 29, 2017 / Active Wall St. announces its post-earnings coverage on Ferroglobe PLC (NASDAQ: GSM). The Company posted its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on March 16, 2017. The London, UK-based Company’s quarterly sales rose sequentially. Register with us now for your free membership at:

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One of Ferroglobe’s competitors within the Industrial Metals & Minerals space, Fairmount Santrol Holdings Inc. (NYSE: FMSA), reported on March 09, 2017, results for the fourth quarter and full year ended December 31, 2016. AWS will be initiating a research report on Fairmount Santrol in the coming days.

Today, AWS is promoting its earnings coverage on GSM; touching on FMSA. Get our free coverage by signing up to:

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Earnings Reviewed

During the quarter ended on December 31, 2016, Ferroglobe’s sales increased to $394.37 million from $364.73 million recorded at the end of Q3 FY16. However, sales numbers for Q4 FY16 marginally missed market consensus estimates of $394.8 million.

The producer of silicon metal and silicon-based alloys reported loss attributable to the parent of $40.09 million, or $0.23 loss per diluted ordinary share, in Q4 FY16 compared to loss attributable to the parent of $28.52 million, or $0.17 loss per diluted ordinary share, in Q3 FY16. The Company reported adjusted loss attributable to the parent of $16.89 million, or $0.09 loss per diluted ordinary share, during Q4 FY16 versus adjusted loss attributable to the parent of $14.60 million, or $0.09 loss per diluted ordinary share, in the previous quarter. Meanwhile, Wall Street had expected the Company to report adjusted loss of $0.17 per ordinary share.

In FY16, Ferroglobe’s sales came in at $1.58 billion compared to $2.04 billion in the previous year. The Company reported loss attributable to the parent of $136.55 million, or $0.79 loss per diluted ordinary share, in FY16 versus loss attributable to the parent of $96.60 million in FY15. Furthermore, the Company reported adjusted loss attributable to the parent during FY16 of $40.64 million, or $0.24 per ordinary share.

Operational Metrics

For the reported quarter, the Company’s cost of sales was at $278.76 million, up from $236.63 million in the prior quarter. The Company reported operating loss of $55.45 million during Q4 FY16 compared to operating loss of $33.66 million in Q3 FY16. The Company posted negative EBITDA during Q4 FY16 of $23.25 million compared to a negative EBITDA of $3.22 million in Q3 FY16. Furthermore, the Company’s adjusted EBITDA for the reported quarter stood at $9.09 million, or 2.3% of sales, versus $12.80 million, or 3.5% of sales, in Q3 FY16.

Ferroglobe shipped 83,950 metric tons of Silicon Metal in Q4 FY16, up 3.53% from 81,091 metric tons shipment of Silicon Metal in Q3 FY16. Silicon Alloys shipment increased 13.17% q-o-q to 78,698 metric tons in Q4 FY16 from 69,539 metric tons in Q3 FY16. During the reported quarter, Manganese Alloys shipment surged 31.26% sequentially to 77,927 metric tons from 59,368 metric tons in Q3 FY16. Additionally, total shipments during Q4 FY16 were 240,575 metric tons compared to 209,998 metric tons in Q3 FY16.

Cash Flow & Balance Sheet

During Q4 FY16, Ferroglobe’s net cash provided by operating activities were $38.08 million, up from $22.48 million in Q3 FY16. Free cash flow during Q4 FY16 stood at $20.3 million compared to $11.7 million in Q3 FY16. At the close of books in the reported quarter, Ferroglobe had $196.98 million in cash, compared to $119.17 million at the close of books on September 30, 2016. Furthermore, the Company’s net debt at the end of Q4 FY16 was $404.6 million compared to $430.0 million at the end of Q3 FY16.

Stock Performance

At the closing bell, on Tuesday, March 28, 2017, Ferroglobe’s stock rose 2.98% from its previous closing price of $9.73, ending the trading session at $10.02. A total volume of 433.00 thousand shares were traded at the end of the day. In the last six months and previous twelve months, shares of the Company have surged 14.54% and 16.03%, respectively. The stock has a dividend yield of 3.19% and currently has a market cap of $1.74 billion.

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