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Press Release: GrafTech Reports Unaudited Fourth -3-

· 02/05/2021 06:45
GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) Unaudited As of As of December 31, December 31, 2020 2019 ---------------- ------------------ ASSETS Current assets: Cash and cash equivalents $ 145,442 $ 80,935 Accounts and notes receivable, net of allowance for doubtful accounts of $8,243 as of December 31, 2020 and $5,474 as of December 31, 2019 182,647 247,051 Inventories 265,964 313,648 Prepaid expenses and other current assets 35,114 40,946 ----------- ----------- Total current assets 629,167 682,580 ----------- ----------- Property, plant and equipment 784,902 733,417 Less: accumulated depreciation 278,685 220,397 ----------- ----------- Net property, plant and equipment 506,217 513,020 Deferred income taxes 32,551 55,217 Goodwill 171,117 171,117 Other assets 93,660 104,230 ----------- ----------- Total assets $ 1,432,712 $ 1,526,164 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 70,989 $ 78,697 Short-term debt 131 141 Accrued income and other taxes 48,720 65,176 Other accrued liabilities 56,501 48,335 Related party payable - tax receivable agreement 21,752 27,857 ----------- ----------- Total current liabilities 198,093 220,206 Long-term debt 1,420,000 1,812,682 Other long-term obligations 81,478 72,562 Deferred income taxes 43,428 49,773 Related party payable - tax receivable agreement long-term 19,098 62,014 Stockholders' equity: Preferred stock, par value $0.01, 300,000,000 shares authorized, none issued -- -- Common stock, par value $0.01, 3,000,000,000 shares authorized, 267,188,547 and 270,485,308 shares issued and outstanding as of December 31, 2020 and December 31, 2019, respectively 2,672 2,705 Additional paid-in capital 758,354 765,419 Accumulated other comprehensive loss (19,641) (7,361) Accumulated deficit (1,070,770) (1,451,836) ----------- ----------- Total stockholders' deficit (329,385) (691,073) Total liabilities and stockholders' equity $ 1,432,712 $ 1,526,164 =========== =========== GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except per share data) Unaudited For the Three Months For the Year Ended December 31, Ended December 31, ------------------------------ -------------------------------- 2020 2019 2020 2019 -------------- -------------- -------------- ---------------- CONSOLIDATED STATEMENTS OF OPERATIONS Net sales $ 338,010 $ 414,612 $ 1,224,361 $ 1,790,793 Cost of sales 162,485 179,322 563,864 750,390 ------------- ------------- ------------- ------------- Gross profit 175,525 235,290 660,497 1,040,403 Research and development 1,903 723 3,975 2,684 Selling and administrative expenses 17,918 17,346 67,913 63,674 ------------- ------------- ------------- ------------- Operating profit 155,704 217,221 588,609 974,045 Other expense 5,639 4,561 3,330 5,203 Related party Tax Receivable Agreement (benefit) expense (17,744) 3,393 (21,090) 3,393 Interest expense 29,048 28,859 98,074 127,331 Interest income (168) (1,799) (1,750) (4,709) ------------- ------------- ------------- ------------- Income before provision for income taxes 138,929 182,207 510,045 842,827 Provision for income taxes 13,833 7,285 75,671 98,225 ------------- ------------- ------------- ------------- Net income $ 125,096 $ 174,922 $ 434,374 $ 744,602 ========= ========= ========= ========= Basic income per common share: Net income per share $ 0.47 $ 0.61 $ 1.62 $ 2.58 Weighted average common shares outstanding 267,285,677 285,040,356 267,916,483 289,057,356 Diluted income per common share: Income per share $ 0.47 $ 0.61 $ 1.62 $ 2.58 Weighted average common shares outstanding 267,321,380 285,079,866 267,930,644 289,074,601-- adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; -- adjusted EBITDA does not reflect our cash expenditures for capital equipment or other contractual commitments, including any capital expenditure requirements to augment or replace our capital assets; -- adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our indebtedness; -- adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; -- adjusted EBITDA does not reflect expenses relating to our pension and OPEB plans; -- adjusted EBITDA does not reflect the non-cash gains or losses from foreign currency remeasurement of non-operating liabilities in our foreign subsidiaries where the functional currency is the U.S. dollar; -- adjusted EBITDA does not reflect initial and follow-on public offering expenses; -- adjusted EBITDA does not reflect related party Tax Receivable Agreement expense; -- adjusted EBITDA does not reflect stock-based compensation or the non-cash write-off of fixed assets; and -- other companies, including companies in our industry, may calculate EBITDA, adjusted EBITDA and adjusted EBITDA margin differently, which reduces its usefulness as a comparative measure.

We monitor adjusted EBITDA as a supplement to our GAAP measures, and believe it is useful to present to investors, because we believe that it facilitates evaluation of our period-to-period operating performance by eliminating items that are not operational in nature, allowing comparison of our recurring core business operating results over multiple periods unaffected by differences in capital structure, capital investment cycles and fixed asset base. Adjusted EBITDA margin is also a non-GAAP financial measure used by our management and our board of directors as supplemental information to assess the Company's operational performance and is calculated as adjusted EBITDA divided by net sales. In addition, we believe adjusted EBITDA, adjusted EBITDA margin and similar measures are widely used by investors, securities analysts, ratings agencies, and other parties in evaluating companies in our industry as a measure of financial performance and debt-service capabilities. We also monitor the ratio of total debt to adjusted EBITDA, because we believe it is a useful and widely used way to assess our leverage.

Our use of adjusted EBITDA has limitations as an analytical tool, and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

In evaluating EBITDA, adjusted EBITDA and adjusted EBITDA margin, you should be aware that in the future, we will incur expenses similar to the adjustments in the reconciliation presented below. Our presentations of EBITDA, adjusted EBITDA and adjusted EBITDA margin should not be construed as suggesting that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider EBITDA, adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including our net income (loss) and other GAAP measures.

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February 05, 2021 06:45 ET (11:45 GMT)