Key Highlights
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Revenue was $270.7 million in the fourth quarter 2010, a 17% increase over the same period in 2009; full year revenue was $990.5 million, a 14% increase over 2009
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EBITDA[1] was $20.2 million in the fourth quarter 2010, a 62% increase over the same period in 2009; full year EBITDA was $84.9 million, a 23% increase over the full year 2009
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EPS on a fully diluted basis was $0.46 in the fourth quarter 2010; full year EPS, was $0.09; excluding Timminco, EPS improved to $0.10 in Q4 2010, up from $0.03 in Q4 2009; full year EPS excluding Timminco was $0.52
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The Advanced Materials Division generated revenue of $168.9 million and EBITDA of $7.7 million in Q4 2010; full year revenue and EBITDA was $616.3 million and $39.8 million, respectively
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The Engineering Systems Division generated revenue of $67.7 million and EBITDA of $10.0 million in Q4 2010; full year revenue and EBITDA was $245.7 million and $37.5 million, respectively
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Graphit Kropfmühl generated revenue of $34.2 million and EBITDA of $2.5 million in Q4 2010; full year revenue and EBITDA was $128.6 million and $7.6 million, respectively
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As of 31 December 2010, cash on the balance sheet was $89.3 million, net debt was $147.8 million
Amsterdam, 16 March 2011 (Regulated Information) — AMG Advanced Metallurgical Group N.V. (« AMG », EURONEXT AMSTERDAM: « AMG ») reported fourth quarter 2010 revenue of $270.7 million a 17% increase from $231.4 million in the fourth quarter 2009.
EBITDA increased 62% to $20.2 million in the fourth quarter 2010 from $12.4 million in the fourth quarter 2009. Net income attributable to shareholders for the fourth quarter 2010 was $12.5 million, or $0.46 per fully diluted share. Net loss attributable to shareholders for the fourth quarter 2009 was ($30.2) million, or ($1.13) per fully diluted share. Excluding AMG’s share of Timminco’s net income in the fourth quarter, AMG’s net income attributable to shareholders for the fourth quarter 2010 was $2.4 million, or $0.10 per fully diluted share compared to $800 thousand, or $0.03 per fully diluted share in 2009.
Full year 2010 revenue increased 14% to $990.5 million, from $867.4 million in 2009. EBITDA increased 23% to $84.9 million in 2010 compared with $69.1 million in 2009. Net income attributable to shareholders for the full year 2010 was $2.4 million, or $0.09 per fully diluted share. Excluding AMG’s portion of Timminco’s net loss, AMG’s net income attributable to shareholders for the full year 2010 was $13.9 million, or $0.52 per fully diluted share. Net loss attributable to shareholders for continuing operations for the full year 2009, excluding AMG’s portion of Timminco’s net loss, was ($10.6) million, or ($0.39) per fully diluted share.
Dr. Heinz Schimmelbusch, Chairman of the Management Board and CEO, commented: « 2010 was a transition year. Our primary end markets of Aerospace, Energy, Infrastructure and Specialty Metals and Chemicals began to rebound from the global financial crisis. AMG’s portfolio approach to specialty metals acted as a stabilizer in 2010 as the Advanced Materials division saw significant improvement in pricing and demand for its products. Although the Engineering Systems division entered 2010 with a low order backlog, the market for vacuum systems improved substantially in the second half of the year after reaching a bottom in mid-year. Graphit Kropfmühl’s performance also improved in the second half of 2010, driven by the energy and specialty chemicals markets. The improvement in market conditions experienced in the second half of 2010 and our investments in tantalum, antimony and aluminium master alloys position the business for revenue and EBITDA growth in 2011. »
[1] EBITDA is defined as earnings before interest, tax, depreciation and amortization and excludes nonrecurring items
Key Figures
| In 000’s US Dollar | |||||||
| Q4 ’10 | Q4 ’09 | Change | FY ’10 | FY ’09 | Change | ||
| Revenue | $270,731 | $231,388 | 17% | $990,495 | $867,447 | 14% | |
| Gross profit | 49,382 | 46,354 | 7% | 178,558 | 165,587 | 8% | |
| Gross margin | 18.2% | 20.0% | 18.0% | 19.1% | |||
| Operating income (loss) | 6,323 | 1,840 | 244% | 43,259 | 20,561 | 110% | |
| Operating margin | 2.3% | 0.8% | 4.4% | 2.4% | |||
| Net income (loss) attributable to shareholders |
12,481 | (30,227) | N/A | 2,414 | (75,642) | N/A | |
| EPS- Fully diluted | $0.46 | ($1.13) | $0.09 | ($2.82) | |||
| Adjusted EPS-Fully diluted[1] | $0.10 | $0.03 | $0.52 | ($0.39) | |||
| EBIT[2] | 12,917 | 6,165 | 110% | 59,866 | 45,370 | 32% | |
| EBITDA[3] | 20,171 | 12,432 | 62% | 84,875 | 69,128 | 23% | |
| EBITDA margin | 7.5% | 5.4% | 8.6% | 8.0% |
Notes:
[1] Adjusted to exclude all Timminco results including equity gains (losses) which accounted for $0.36 in EPS in Q4 2010
[2] EBIT is defined as earnings before interest, tax and excludes nonrecurring items
[3] EBITDA is defined as earnings before interest, tax, depreciation and amortization and excludes nonrecurring items
Operational Review – Fourth Quarter 2010
Advanced Materials Division
| Q4 ’10 | Q4 ’09 | Change | |
| Revenue | $168,863 | $124,306 | 36% |
| Gross profit Operating income |
24,265 1,432 |
20,827 689 |
17% 108% |
| EBITDA | 7,738 | 5,331 | 45% |
| Capital expenditures | 7,321 | 4,983 | 47% |
The Advanced Materials division’s fourth quarter 2010 financial results were driven by a rebound in the aerospace, specialty metal and chemical and energy industries. Revenue increased by $44.6 million, or 36%, to $168.9 million. The increase in revenue was driven by price increases in most products and in particular by antimony and chrome metal, with reference prices increasing by 70% and 31%, respectively. While prices improved across most products, volume growth was uneven. Ferrovanadium and chrome metal volumes increased by 30% and 6%, respectively however volumes for antimony decreased by 11% during the fourth quarter 2010 compared to the fourth quarter 2009.
The fourth quarter 2010 gross margin of 14% of revenue declined from 17% of revenue in the fourth quarter 2009 due to unfavourable changes in product mix. Specifically, significant increases in revenue from lower margin aluminium products more than offset increased economies of scale, resulting in lower gross margins despite the increase in revenue.
Fourth quarter 2010 EBITDA increased by $2.4 million to 5% of revenue from 4% of revenue in 2009, due to the increase in gross profit and a 1% decrease in SG&A compared to the same period in the prior year.
Capital expenditures were $7.3 million for the quarter, 47% more than the fourth quarter 2009. The primary growth capital investments made in the fourth quarter involved the expansion of the ferrovanadium logistics facility and production facilities for coatings used in solar thin films.
Engineering Systems Division
| Q4 ’10 | Q4 ’09 | Change | |
| Revenue | $67,676 | $73,809 | (8%) |
| Gross profit Operating income |
20,946 7,041 |
22,415 1,542 |
(7%) 357% |
| EBITDA | 9,963 | 5,895 | 69% |
| Capital expenditures | 4,911 | 2,988 | 64% |
Despite an increase in order intake compared to the fourth quarter 2009 and the third quarter 2010, the Engineering Systems division’s fourth quarter 2010 revenue was adversely impacted by the low order backlog level with which the division began the current quarter. The order backlog was $183.3 million as of December 31, 2010, up 25% from $147.1 million on September 30, 2010. The division generated order intake of $107.6 million in the fourth quarter 2010, a 1.59x book to bill ratio and a 129% increase compared to the fourth quarter 2009. Order intake for the solar industry improved 254% from the same period in 2009, accounting for 38% of total order intake. Demand for vacuum furnaces for specialty steel used in aerospace and energy also increased substantially compared to the same period in the prior year. The Division’s current order backlog consists of a diversified mix of remelting systems and induction casting systems for the titanium and specialty steel industries, solar crystallisation systems and vacuum heat treatment furnaces.
Fourth quarter 2010 revenue decreased by $6.1 million, or 8%, compared to the same quarter in 2009. The revenue decrease was primarily due to the lower order backlog level at the beginning of the quarter compared to the opening order backlog level in the fourth quarter 2009. Sales of solar silicon DSS furnaces for the photovoltaic industry decreased 44% in the fourth quarter 2010 compared to the same period in 2009. During the fourth quarter 2010, 30% of revenue was generated from sales of solar silicon furnaces, down from 49% in fourth quarter 2009. Revenue from remelting systems, primarily for the aerospace and specialty steel industries, increased by 3% in the fourth quarter 2010 while the Own and Operate business increased revenue by 22%.
Gross margin was 31% of revenue in the fourth quarter 2010, up slightly from 30% of revenue in the same period in the prior year. The increase in the gross margin was due to favourable changes in product mix.
Fourth quarter 2010 EBITDA was $10.0 million, a 69% increase over the same period in 2009. The EBITDA margin increased to 15% in the fourth quarter 2010 compared to 8% for the same period in the prior year. The EBITDA margin increase was attributable to higher gross margin and a 30% reduction in SG&A primarily due to recovery of a bad debt and a decrease in research and development expenses.
Capital expenditures increased to $4.9 million in the fourth quarter 2010, 64% more than the fourth quarter 2009. This increase was a result of the expenditures related to the heat treatment services facility in Mexico during the fourth quarter 2010.
Graphit Kropfmühl
| Q4 ’10 | Q4 ’09 | Change | |
| Revenue | $34,192 | $33,273 | 3% |
| Gross profit Operating loss |
4,171 (2,150) |
3,112 (391) |
34% 450% |
| EBITDA | 2,470 | 1,206 | 105% |
| Capital expenditures | 1,687 | 762 | 121% |
Increasing volumes for both silicon metal and natural graphite resulted in improved revenues and EBITDA for Graphit Kropfmühl (« GK ») during the fourth quarter 2010. Fourth quarter 2010 revenue increased $900 thousand, or 3%, compared to the same quarter in 2009. Natural graphite revenue increased $1.6 million, or 16%, driven by increases in both volumes and pricing. This increase, however, was muted by a $700 thousand, or 3%, decrease in silicon metal revenue due to lower contract prices more than offsetting high volumes.
Gross margin improved to 12% of revenue in the fourth quarter 2010 from 9% in the same period in the prior year. The fourth quarter 2010 gross profit was positively impacted by higher natural graphite end market prices and lower per unit production costs.
Fourth quarter 2010 EBITDA was $2.5 million, a 105% increase compared to the fourth quarter 2009. The EBITDA margin increased to 7% in the fourth quarter 2010 up significantly from 4% in the same period of the prior year. The overall EBITDA margin increase was attributable to increased natural graphite gross margin and a 3% decrease in SG&A expenses, slightly offset by lower contract prices for silicon metal.
Capital expenditures increased to $1.7 million for the fourth quarter 2010, 121% more than the same period 2009. The increase in capital expenditures was due to expansion of the high purity natural graphite production facility to meet increased market demand.
Timminco
AMG’s ownership in Timminco was 42.5% as of December 31, 2010. AMG accounts for its investment in Timminco via the equity accounting method. Timminco’s income for the fourth quarter 2010 is included in share of income from associates on AMG’s income statement and the carrying value of AMG’s investment in Timminco of $17.7 million is listed as an asset on AMG’s balance sheet. During the fourth quarter, Timminco sold 49% of its silicon metal operation to Dow Corning for $40.3 million in cash and up to an additional $10.0 million based upon hitting incentive targets. Timminco used the proceeds of this transaction to repay all of its senior bank debt. Additional information on Timminco and its fourth quarter 2010 financial statements can be found at www.Timminco.com.
Operational Review – Year 2010
Advanced Materials Division
| FY ’10 | FY ’09 | Change | |
| Revenue | $616,267 | $429,083 | 44% |
| Gross profit Operating income (loss) |
94,749 20,678 |
47,866 (28,761) |
98% N/A |
| EBITDA | 39,823 | (36) | N/A |
| Capital expenditures | 20,484 | 11,546 | 77% |
Advanced Materials’ 2010 revenue increased by $187.2 million, or 44%, from 2009, to $616.3 million. This was a direct result of increases in average selling prices and volumes for many products, most notably for antimony and titanium alloys.
Gross margin increased to 15% in 2010 from to 11% in 2009. 2010 Gross profit increased by $46.9 million, or 98%, from 2009, to $94.7 million due to higher average selling prices and an increase in volumes of products, such as ferrovanadium, chrome metal and aluminium master alloys and powders. The increase in gross profit was driven by increases in end product prices for specialty metals products in which the Division is naturally long, such as antimony and ferrovanadium.
2010 EBITDA increased to $39.8 million, or 6%, of revenue due to the increase in gross profit, slightly offset by an increase in SG&A expenses. SG&A expenses increased 4% to $70.5 million in 2010 from $68.1 million in 2009 as a slight decrease in direct costs was offset by an increase in corporate expenses.
Capital expenditures were $20.5 million in 2010, 77% more than 2009. The Division invested in growth capital expenditures in its ferrovanadium, tantalum and aluminium operations during 2010 to in an effort to lower costs and increase security of raw material supply.
Engineering Systems Division
| FY ’10 | FY ’09 | Change | |
| Revenue | $245,652 | $320,530 | (23%) |
| Gross profit Operating income |
70,119 22,916 |
105,776 48,015 |
(34%) (52%) |
| EBITDA | 37,452 | 62,885 | (40%) |
| Capital expenditures | 7,877 | 6,735 | 17% |
Engineering Systems’ order intake for 2010 was $280.8 million, up 53% from 2009. Despite this, the Engineering Systems’ 2010 revenue decreased by $74.9 million, or 23%, from 2009, to $245.7 million as a result of a low order backlog at the beginning of 2010 and time delay of that backlog turning into revenue.
Gross margin decreased from 33% in 2009 to 29% in 2010. 2010 Gross profit decreased by $35.7 million, or 34%, from 2009 to $70.1 million due to the significantly lower revenue particularly a 53% decline in solar silicon systems revenue compared to 2009 and the resulting effect of diminished economies of scale.
2010 EBITDA decreased by $25.4 million, or 40%, from 2009, to $37.5 million as a result of the decrease in gross profit, slightly offset by a decrease in SG&A expenses. EBITDA margin decreased to 15% of revenue from 20% in 2009. SG&A expenses decreased by $11.5 million, or 20%, to $46.6 million as the Division benefitted from a full year of the cost cutting measures implemented in late 2009.
Capital expenditures were $7.9 million in 2010, 17% more than 2009. This increase was a result of the expansion of the heat treatment services facility in Mexico, which was completed during the fourth quarter 2010.
Graphit Kropfmühl
| FY ’10 | FY ’09 | Change | |
| Revenue | $128,576 | $117,834 | 9% |
| Gross profit Operating (loss) income |
13,690 (335) |
11,945 1,307 |
15% N/A |
| EBITDA | 7,600 | 6,279 | 21% |
| Capital expenditures | 4,612 | 7,251 | (36%) |
GK’s 2010 revenue increased by $10.7 million, or 9%, from 2009, to $128.6 million. The increase was primarily driven by an increase in natural graphite pricing and volumes.
Gross margin increased from 10% in 2009 to 11% in 2010. 2010 Gross profit increased by $1.7 million, or 15%, from 2009 to $13.7 million due to a 47% increase in gross profit in natural graphite. GK’s improved gross profit was primarily generated by higher prices and improved economies of scale from natural graphite, slightly offset by a 17% decrease in silicon metal gross profit.
2010 EBITDA increased by $1.3 million, or 21%, from 2009, to $7.6 million as a result of the increase in gross profit, slightly offset by a $500 thousand increase in SG&A. EBITDA margin increased to 6% of revenue from 5% in 2009.
Capital expenditures were $4.6 million in 2010, 36% less than 2009. This decrease was a result of the reduction in capital spending on silicon furnace expansion in 2010 compared to 2009 and the completion of the relocation and upgrading of certain natural graphite production activities in early 2010.
Financial Review
Taxes
AMG recorded a tax expense of $11.2 million in the year ended December 31, 2010 as compared to a tax expense of $15.2 million in the year ended December 31, 2009. Excluding losses in associates, for which AMG cannot recognize a tax benefit since these companies are not consolidated, AMG’s effective tax rate was 34.2% for 2010.
Liquidity
| December 31, 2010 | December 31, 2009 | Change | |
| Total debt | $237,089 | $203,796 | 16% |
| Cash & short-term investments | 89,311 | 117,016 | (24%) |
| Net debt | 147,778 | 86,780 | 70% |
AMG had a net debt position of $147.8 million as of December 31, 2010. AMG’s net debt position increased $61.0 million since December 31, 2009 due to $35.4 million of cash tax payments, $9.7 million investment in Timminco, $33.0 million in capital investments, a $17.2 million investment in the antimony mine in Turkey, a $4.0 million acquisition of Mono2 solar technology and a $45.2 million increase in working capital due to increasing material costs and provisions, reduced by EBITDA of $84.9 million.
| Cash Flow | ||
| Twelve Months Ended | ||
| December ’10 | December ’09 | |
| Operating cash flows used in continuing operations | $(1,623) | $16,368 |
| Operating cash flows used in discontinued operations | – | (18,459) |
| Net cash flows used in operations | (1,623) | (2,091) |
| Capital expenditures | (32,973) | (25,532) |
| Acquisitions, net of cash | (20,154) | – |
| Investment in associates | (10,765) | (28,943) |
| Cash flows used in discontinued operations | – | (32,039) |
| Cash flows (used in) from other investing | 1,320 | (3,667) |
| Net cash flows used in investing activities | (62,572) | (90,181) |
| Financing cash flows from continuing operations | 42,352 | 15,060 |
| Financing cash flows from discontinued operations | – | 47,578 |
| Cash flows generated from financing activities | 42,352 | 62,638 |
Cash flows used in operations were $1.6 million during 2010 as compared to $2.1 million in 2009. The cash flows used in operations during 2010 are a result of $35.4 million in cash tax payments as well as a $45.2 million increase in working capital and provisions, offset by $84.9 million in EBITDA. The substantial cash tax payments are partially due to the difference between IFRS percentage of completion accounting as compared to completed contract methodology for tax payments.
Cash used in investing activities was $62.6 million during 2010. This decrease of $27.6 million from 2009 is composed of an $18.2 million decrease in investments in associates, primarily Timminco, and a $32.0 million decrease in cash flows used by Timminco, which was classified as a discontinued operation in 2009, slightly offset by a $7.4 million increase in capital investments and a $20.2 million increase in acquisitions. The Company invested $16.5 million to acquire a Turkish antimony mine and $3.7 million to acquire the Mono2 solar technology during 2010.
Cash generated from financing activities during 2010 was $42.4 million, a $20.3 million decrease from 2009. This decrease was primarily attributable to cash flows from discontinued operations recognized in 2009 that are not applicable in 2010, offset by $42.4 million in draws on the revolving lines of credit, which were primarily used to fund the acquisition of the Turkish antimony mine.
Outlook
AMG improved its market position for a number of materials and metals technologies used in the end markets of Aerospace, Energy, Infrastructure and Specialty Metals during 2010. These activities combined with improving markets should generate continued revenue and earnings growth in 2011. The Advanced Materials division’s acquisition of the antimony mine and smelter, cost reductions made in the aerospace master alloys and coatings products, the acquisition of aluminium alloy producer KB Alloys, LLC and rising prices and demand for tantalum and aerospace master alloys should yield double digit percentage revenue growth for this division in 2011. The Engineering Systems division began 2011 with a 13% larger order backlog than it began 2010 due to improved demand in the specialty steel and solar industries. This should result in a revenue growth rate during 2011 similar to the current increase in order backlog; however, margin pressure may increase. We expect strengthening demand for natural graphite and improved pricing to result in revenue growth at Graphit Kropfmühl in 2011. The growth in revenue across all business segments combined with ongoing capital investments to improve efficiencies should result in an increased EBITDA margin in 2011.
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
| For the year ended December 31 | ||||
| In thousands of US Dollars | 2010 | 2009 | ||
| Continuing operations | ||||
| Revenue | 990,495 | 867,447 | ||
| Cost of sales | 811,937 | 701,860 | ||
| Gross profit | 178,558 | 165,587 | ||
| Selling, general and administrative expenses | 128,934 | 137,537 | ||
| Restructuring expense | 423 | 7,782 | ||
| Asset impairment expense | 602 | 1,718 | ||
| Environmental expense | 6,421 | 3,998 | ||
| Other expenses | 260 | 173 | ||
| Other income | (1,341) | (6,182) | ||
| Operating profit | 43,259 | 20,561 | ||
| Finance expense | 18,727 | 18,419 | ||
| Finance income | (5,429) | (3,587) | ||
| Foreign exchange (gain) loss | (2,799) | 2,418 | ||
| Net finance costs | 10,499 | 17,250 | ||
| Share of loss of associates | (19,405) | (31,958) | ||
| Profit (loss) before income tax | 13,355 | (28,647) | ||
| Income tax expense | 11,207 | 15,205 | ||
| Profit (loss) for the year from continuing operations | 2,148 | (43,852) | ||
| Loss after tax for the year from discontinued operations | – | (54,378) | ||
| Profit (loss) for the year | 2,148 | (98,230) | ||
| Attributable to: | ||||
| Shareholders of the Company | 2,414 | (75,642) | ||
| Non-controlling interests | (266) | (22,588) | ||
| 2,148 | (98,230) | |||
| Earnings (loss) per share | ||||
| Basic earnings (loss) per share | 0.09 | (2.82) | ||
| Diluted earnings (loss) per share | 0.09 | (2.82) | ||
| Earnings (loss) per share from continuing operations | ||||
| Basic earnings (loss) per share from continuing operations | 0.09 | (1.77) | ||
| Diluted earnings (loss) per share from continuing operations | 0.09 | (1.77) | ||
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Income Statement
| For the three months ended December 31 | ||||
| In thousands of US Dollars | 2010 | 2009 | ||
| Continuing operations | ||||
| Revenue | 270,731 | 231,388 | ||
| Cost of sales | 221,349 | 185,034 | ||
| Gross profit | 49,382 | 46,354 | ||
| Selling, general and administrative expenses | 36,765 | 42,605 | ||
| Restructuring expense | 417 | 2,087 | ||
| Asset impairment expense | 602 | 1,718 | ||
| Environmental expense | 5,658 | (164) | ||
| Other expenses | 248 | 65 | ||
| Other income | (631) | (1,797) | ||
| Operating profit | 6,323 | 1,840 | ||
| Finance expense | 2,966 | 2,538 | ||
| Finance income | (2,459) | (970) | ||
| Foreign exchange loss | 1,535 | 2,594 | ||
| Net finance costs | 2,042 | 4,162 | ||
| Share of income (loss) of associates | 7,569 | (29,273) | ||
| Profit (loss) before income tax | 11,850 | (31,595) | ||
| Income tax benefit | (110) | (2,436) | ||
| Profit (loss) for the period from continuing operations | 11,960 | (29,159) | ||
| Profit after tax for the period from discontinued operations | – | 202 | ||
| Profit (loss) for the period | 11,960 | (28,957) | ||
| Attributable to: | ||||
| Shareholders of the Company | 12,481 | (30,227) | ||
| Non-controlling interests | (521) | 1,270 | ||
| 11,960 | (28,957) | |||
| Earnings (loss) per share | ||||
| Basic earnings (loss) per share | 0.46 | (1.13) | ||
| Diluted earnings (loss) per share | 0.46 | (1.13) | ||
| Earnings (loss) per share from continuing operations | ||||
| Basic earnings (loss) per share from continuing operations | 0.46 | (1.13) | ||
| Diluted earnings (loss) per share from continuing operations | 0.46 | (1.13) | ||
| Unaudited AMG Advanced Metallurgical Group N.V. |
|||||||
| Consolidated Statement of Financial Position | |||||||
| As at December 31 | |||||||
| In thousands of US Dollars | 2010 | 2009 | |||||
| Assets | |||||||
| Property, plant and equipment | 228,612 | 211,022 | |||||
| Intangible assets | 27,002 | 28,253 | |||||
| Investments in associates | 25,186 | 34,794 | |||||
| Derivative financial instruments | 5,199 | 1,718 | |||||
| Deferred tax assets | 22,107 | 10,912 | |||||
| Restricted cash | 12,528 | 13,263 | |||||
| Notes receivable | 322 | 5,542 | |||||
| Other assets | 15,372 | 11,980 | |||||
| Total non-current assets | 336,328 | 317,484 | |||||
| Inventories | 207,204 | 193,378 | |||||
| Trade and other receivables | 175,421 | 147,787 | |||||
| Derivative financial instruments | 5,731 | 4,954 | |||||
| Other assets | 41,080 | 30,359 | |||||
| Cash and cash equivalents | 89,311 | 117,016 | |||||
| Total current assets | 518,747 | 493,494 | |||||
| Total assets | 855,075 | 810,978 | |||||
| Equity | |||||||
| Issued capital | 741 | 725 | |||||
| Share premium | 381,636 | 379,518 | |||||
| Other reserves | 36,158 | 31,284 | |||||
| Retained earnings (deficit) | (196,481) | (198,897) | |||||
| Equity attributable to shareholders of the Company | 222,054 | 212,630 | |||||
| Non-controlling interests | 11,911 | 15,793 | |||||
| Total equity | 233,965 | 228,423 | |||||
| Liabilities | |||||||
| Loans and borrowings | 187,813 | 168,319 | |||||
| Employee benefits | 88,372 | 91,358 | |||||
| Provisions | 20,607 | 14,862 | |||||
| Government grants | 642 | 669 | |||||
| Other liabilities | 5,517 | 7,984 | |||||
| Derivative financial instruments | 698 | 1,339 | |||||
| Deferred tax liabilities | 25,436 | 26,395 | |||||
| Total non-current liabilities | 329,085 | 310,926 | |||||
| Loans and borrowings | 4,254 | 3,464 | |||||
| Short term bank debt | 45,022 | 32,013 | |||||
| Government grants | 175 | 234 | |||||
| Other liabilities | 43,287 | 46,179 | |||||
| Trade and other payables | 102,253 | 69,791 | |||||
| Derivative financial instruments | 1,754 | 6,048 | |||||
| Advance payments | 49,597 | 54,764 | |||||
| Current taxes payable | 24,979 | 36,050 | |||||
| Provisions | 20,704 | 23,086 | |||||
| Total current liabilities | 292,025 | 271,629 | |||||
| Total liabilities | 621,110 | 582,555 | |||||
| Total equity and liabilities | 855,075 | 810,978 | |||||
Unaudited
AMG Advanced Metallurgical Group N.V.
Consolidated Statement of Cash Flows
| For the year ended December 31 | |||
| In thousands of US Dollars | 2010 | 2009 | |
| Cash flows used in operating activities | |||
| Loss for the period from continuing operations | 2,148 | (43,852) | |
| Loss for the period from discontinued operations | – | (54,378) | |
| Loss for the period | 2,148 | (98,230) | |
| Adjustments to reconcile loss to net cash flows: | |||
| Non-cash: | |||
| Depreciation and amortization | 25,009 | 23,758 | |
| Restructuring expense | 423 | 7,782 | |
| Asset impairment expense | 602 | 1,718 | |
| Environmental expense | 6,421 | 3,998 | |
| Net finance costs | 10,499 | 17,250 | |
| Share of loss of associates | 19,405 | 31,958 | |
| Loss on sale or disposal of property, plant and equipment | 262 | 6,253 | |
| Equity-settled share-based payment transactions | 6,362 | 13,729 | |
| Cash-settled share-based payment transactions | 1,964 | 3,605 | |
| Income tax expense | 11,207 | 15,205 | |
| Working capital adjustments | |||
| Change in inventories | (23,774) | 45,338 | |
| Change in trade and other receivables | (40,033) | (564) | |
| Change in prepayments | (12,248) | 12,490 | |
| Change in trade payables, provisions, and other liabilities | 35,488 | (97,919) | |
| Change in government grants | (17) | (7,783) | |
| Other | 3,936 | 5,934 | |
| Interest paid | (15,334) | (15,289) | |
| Interest received | 1,496 | 2,468 | |
| Income tax paid, net | (35,439) | (9,711) | |
| Cash flows from discontinued operations | – | 35,919 | |
| Net cash flows used in operating activities | (1,623) | (2,091) | |
| Cash flows used in investing activities | |||
| Proceeds from sale of property, plant and equipment | 983 | 129 | |
| Acquisition of subsidiaries (net of cash acquired of nil) | (20,154) | – | |
| Acquisition of property, plant and equipment and intangibles | (32,973) | (25,532) | |
| Related party loans | 264 | (5,262) | |
| Investments in/acquisition of associates | (10,765) | (28,943) | |
| Change in restricted cash | 151 | 1,410 | |
| Other | (78) | 56 | |
| Cash flows used in discontinued operations | – | (32,039) | |
| Net cash flows used in investing activities | (62,572) | (90,181) | |
| Cash flows from financing activities | |||
| Proceeds from issuance of debt | 45,546 | 30,175 | |
| Repayment of borrowings | (3,432) | (15,785) | |
| Other | 238 | 670 | |
| Cash flows from discontinued operations | – | 47,578 | |
| Net cash flows from financing activities | 42,352 | 62,638 | |
| Net decrease in cash and cash equivalents | (21,843) | (29,634) | |
| Cash and cash equivalents at January 1 | 117,016 | 143,473 | |
| Effect of exchange rate fluctuations on cash held | (5,862) | 3,177 | |
| Cash and cash equivalents at December 31 | 89,311 | 117,016 | |
About AMG
AMG creates and applies innovative metallurgical solutions to support the global trend of sustainable development of natural resources and CO2 reduction. AMG produces highly engineered specialty metal products and advanced vacuum furnace systems for the Energy, Aerospace, Infrastructure and Specialty Metals and Chemicals end markets. AMG consists of two operating divisions, Advanced Materials and Engineering Systems, and owns interests in publicly-listed companies Graphit Kropfmühl AG (Deutsche Börse: GKR.DE) and Timminco Limited (TSX: « TIM »).
The Advanced Materials Division develops and produces specialty metals, alloys and high performance materials. AMG is a significant producer of specialty metals, such as ferrovanadium, ferronickel-molybdenum, aluminum master alloys and additives, chromium metal and ferrotitanium, for Energy, Aerospace, Infrastructure and Specialty Metal and Chemicals applications. Other key products include specialty alloys for titanium and superalloys, coating materials, tantalum and niobium oxides, vanadium chemicals and antimony trioxide.
The Engineering Systems Division designs, engineers and produces advanced vacuum furnace systems and operates vacuum heat treatment facilities, primarily for the Aerospace and Energy (including solar and nuclear) industries. Furnace systems produced by AMG include vacuum remelting, solar silicon melting and crystallization, vacuum induction melting, vacuum heat treatment and high pressure gas quenching, turbine blade coating and sintering. AMG also provides vacuum case-hardening heat treatment services on a tolling basis.
Graphit Kropfmühl AG is a majority controlled, publicly listed subsidiary of AMG. Based on its secure raw material sources in Africa, China and Europe, Graphit Kropfmühl is a specialist in the production of silicon metal and the extraction, processing and refining of natural crystalline graphite for a wide range of energy saving industrial applications.
Timminco Limited is a publicly listed affiliate of AMG. Timminco produces silicon metal for the chemical, aluminum, electronic and solar industries. Timminco also produces solar grade silicon, using its proprietary technology for purifying silicon metal, for the solar energy industry.
With over 2,600 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, the United States, Canada, Mexico, Brazil, and Sri Lanka and also has sales and customer service offices in Belgium, Russia, China and Japan (www.amg-nv.com).
For further information please contact:
| AMG Advanced Metallurgical Group N.V. | +1 610 975 4901 |
| Jonathan Costello | |
| Vice President of Corporate Communications | |
| jcostello@amg-nv.com |
Disclaimer
Certain statements in this press release are not historical facts and are « forward looking ». Forward looking statements include statements concerning AMG’s plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenue or performance, capital expenditures, financing needs, plans and intentions relating to acquisitions, AMG’s competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, AMG’s business strategy and the trends AMG anticipates in the industries and the political and legal environment in which it operates and other information that is not historical information. When used in this press release, the words « expects, » « believes, » « anticipates, » « plans, » « may, » « will, » « should, » and similar expressions, and the negatives thereof, are intended to identify forward looking statements. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved. These forward looking statements speak only as of the date of this press release. AMG expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward looking statement contained herein to reflect any change in AMG’s expectations with regard thereto or any change in events, conditions or circumstances on which any forward looking statement is based. Finally, statements of fact contained herein reflect the facts as of the date of this press release.
The full press release including tables can be downloaded from the following link: