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Press Release: GrafTech Reports Unaudited Fourth -4-

· 02/05/2021 06:45
CONTACT: Wendy WatsonFor the Year Ended December 31, Q4 2020 Q3 2020 Q4 2019 2020 2019 --------- --------- --------- --------- ------------- Net income $125,096 $ 94,234 $174,922 $434,374 $ 744,602 Add: Depreciation and amortization 17,889 16,241 15,432 62,963 61,819 Interest expense 29,048 22,474 28,859 98,074 127,331 Interest income (168) (93) (1,799) (1,750) (4,709) Income taxes 13,833 18,104 7,285 75,671 98,225 -------- -------- -------- -------- ---------- EBITDA $185,698 $150,960 $224,699 $669,332 $1,027,268 Adjustments: Pension and OPEB plan expenses (1) 4,430 583 4,330 6,096 6,727 Initial and follow-on public offering and related expenses (2) 260 -- 647 264 2,056 Non-cash loss on foreign currency remeasurement (3) 1,738 798 942 1,297 1,784 Stock-based compensation (4) 778 764 575 2,669 2,143 Non-cash fixed asset write-off (5) 378 -- -- 378 4,888 Related party Tax Receivable Agreement adjustment (6) (17,744) -- 3,393 (21,090) 3,393 -------- -------- -------- -------- ---------- Adjusted EBITDA $175,538 $153,105 $234,586 $658,946 $1,048,259 ======= ======= ======= ======= ========= (1) Service and interest cost of our OPEB plans. Also includes a mark-to-market loss (gain) for plan assets as of December of each year. (2) Legal, accounting, printing and registration fees associated with the initial and follow-on public offering and related expenses. (3) Non-cash gains and losses from foreign currency remeasurement of non-operating assets and liabilities of our non-U.S. subsidiaries where the functional currency is the U.S. dollar. (4) Non-cash expense for stock-based compensation grants. (5) Non-cash fixed asset write-off recorded for obsolete assets. (6) Non-cash expense adjustment for future payment to our sole pre-IPO stockholder for tax assets that are expected to be utilized. Key operating metrics For the Year Ended December 31, (in thousands) Q4 2020 Q3 2020 Q4 2019 2020 2019 ----------------- --------- --------- --------- ------------ ---------- Sales volume (MT) (1) 37 33 41 135 171 Production volume (MT) (2) 36 32 41 134 177 Production capacity excluding St. Marys (MT) (3)(4) 52 48 52 202 202 Capacity utilization excluding St. Marys (3)(5) 69% 67% 79% 66% 88% Total production capacity (MT) (4)(6) 59 55 59 230 230 Total capacity utilization (5)(6) 61% 58% 69% 58% 77% (1) Sales volume reflects only graphite electrodes manufactured by GrafTech. (2) Production volume reflects graphite electrodes we produced during the period. (3) In the first quarter of 2018, our St. Marys facility began graphitizing a limited number of electrodes sourced from our Monterrey, Mexico facility. (4) Production capacity reflects expected maximum production volume during the period under normal operating conditions, standard product mix and expected maintenance outage. Actual production may vary. (5) Capacity utilization reflects production volume as a percentage of production capacity. (6) Includes graphite electrode facilities in Calais, France; Monterrey, Mexico; Pamplona, Spain; and St. Marys, Pennsylvania.GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Unaudited For the Three Months For the Year Ended December 31, Ended December 31, -------------------- ---------------------- 2020 2019 2020 2019 --------- --------- --------- ----------- Cash flow from operating activities: Net income $125,096 $174,922 $434,374 $744,602 Adjustments to reconcile net income to cash provided by operations: Depreciation and amortization 17,889 15,432 62,963 61,819 Related party Tax Receivable Agreement (benefit) expense (17,744) 3,393 (21,090) 3,393 Deferred income tax provision 4,004 (11,193) 20,241 17,503 Non-cash interest expense 9,753 1,580 14,521 6,344 Other charges, net 8,191 4,142 10,526 21,831 Net change in working capital* 1,340 32,624 86,438 (47,687) Change in related party Tax Receivable Agreement -- -- (27,857) -- Change in long-term assets and liabilities (1,548) (356) (16,470) (2,489) -------- -------- -------- -------- Net cash provided by operating activities 146,981 220,544 563,646 805,316 Cash flow from investing activities: Capital expenditures (5,387) (20,050) (36,075) (64,103) Proceeds from the sale of assets 301 121 379 219 -------- -------- -------- -------- Net cash used in investing activities (5,086) (19,929) (35,696) (63,884) Cash flow from financing activities: Short-term debt reductions, net (146) -- (146) -- Refinancing fees and debt issuance costs (6,278) -- (6,278) -- Proceeds from the issuance of long-term debt 500,000 -- 500,000 -- Repurchase of common stock - related party -- (250,000) -- (250,000) Repurchase of common stock - non-related party -- (1,384) (30,099) (10,868) Payment of tax withholdings related to net share settlement of equity awards -- -- (71) -- Principal repayments on long-term debt (647,000) (225,140) (896,214) (350,140) Dividends paid to non-related party (1,050) (5,108) (8,603) (20,613) Dividends paid to related party (1,622) (19,503) (22,272) (78,010) -------- -------- -------- -------- Net cash used in financing activities (156,096) (501,135) (463,683) (709,631) Net change in cash and cash equivalents (14,201) (300,520) 64,267 31,801 Effect of exchange rate changes on cash and cash equivalents 802 291 240 (746) Cash and cash equivalents at beginning of period 158,841 381,164 80,935 49,880 -------- -------- -------- -------- Cash and cash equivalents at end of period $145,442 $ 80,935 $145,442 $ 80,935 ======= ======= ======= ======= * Net change in working capital due to changes in the following components: Accounts and notes receivable, net $(14,851) $ 20,323 $ 63,557 $ (404) Inventories 34,262 (1,641) 44,633 (21,549) Prepaid expenses and other current assets (2,409) (1,774) 3,028 3,929 Income taxes payable (28,452) 9,978 (12,420) (18,174) Accounts payable and accruals 12,288 5,785 (12,790) (11,551) Interest payable 502 (47) 430 62 -------- -------- -------- -------- Net change in working capital $ 1,340 $ 32,624 $ 86,438 $(47,687) ======= ======= ======= =======

NON-GAAP RECONCILIATION

(Dollars in thousands)

The following table reconciles our non-GAAP key financial measures to the most directly comparable GAAP measures:

View source version on businesswire.com: https://www.businesswire.com/news/home/20210205005059/en/

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