Ferroglobe Reports Results for Third Quarter of 2018

November 26, 2018

Sales of $527 million; Net Loss of $3 million; Adjusted EBITDA of $45 million

Q3 sales of $526.8 million, compared to $583.0 million in Q2 2018 and $451.6 million in Q3 2017
Q3 net loss of $2.9 million compared to a net profit of $66.0 million in Q2 2018 and a net loss of $5.0 million in Q3 2017
Q3 adjusted net income attributable to parent of $0.1 million compared to $25.7 million in Q2 2018 and $9.2 million in Q3 2017
Q3 adjusted EBITDA of $45.0 million compared to $86.3 million in Q2 2018 and $56.1 million in Q3 2017
YTD sales of $1.67 billion compared to $1.27 billion in the prior year period
YTD net income of $98.7 million compared to a net loss of $12.1 million in the same period in the prior year
YTD adjusted net income of $59.1 million compared to $10.5 million in the same period in the prior year
YTD adjusted EBITDA of $220.9 million compared to $130.9 million in the same period in the prior year

LONDON, Nov. 26, 2018 (GLOBE NEWSWIRE) — Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe”, the “Company”, or the “Parent”), the world’s leading producer of silicon metal, and a leading silicon- and manganese-based specialty alloys producer, today announced results for the third quarter of 2018.

Earnings Highlights

In Q3 2018, Ferroglobe posted a net loss of $2.9 million, or $(0.01) per share on a fully diluted basis. On an adjusted basis, Q3 2018 net profit was $0.1 million, or $0.00 per share on a fully diluted basis.

Q3 2018 reported EBITDA was $45.0 million, down from $130.9 million in the prior quarter. On an adjusted basis, Q3 2018 EBITDA was $45.0 million, down 47.9% from Q2 2018 adjusted EBITDA of $86.3 million. The Company reported adjusted EBITDA margin of 8.5% for Q3 2018, compared to adjusted EBITDA margin of 14.8% for Q2 2018. Year-to-date adjusted EBITDA was $220.9 million, up 68.8% from $130.9 million in the same period in the prior year.

	Quarter Ended			Quarter Ended			Quarter Ended			Nine Months Ended			Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
$,000
Revenue	$	526,838		$	582,977		$	451,628		$	1,670,519		$	1,273,475
Net (loss) profit	$	(2,916	)	$	66,030		$	(4,987	)	$	98,728		$	(12,102	)
Diluted EPS	$	(0.01	)	$	0.39		$	(0.02	)	$	0.60		$	(0.04	)
Adjusted net income attributable to the parent	$	77		$	25,684		$	9,225		$	59,057		$	10,459
Adjusted diluted EPS	$	0.00		$	0.14		$	0.05		$	0.34		$	0.07
Adjusted EBITDA	$	45,042		$	86,296		$	56,110		$	220,942		$	130,863
Adjusted EBITDA margin		8.5	%		14.8	%		12.4	%		13.2	%		10.3	%

“Following strong growth in our business over several sequential quarters, market conditions in our main products deteriorated through Q3,” said Pedro Larrea, CEO of Ferroglobe. “However, Ferroglobe is still showing solid results overall for the first nine months of 2018, with adjusted EBITDA up 69% year-over-year to $220.9 million, leverage remaining below 2.0x and a comfortable liquidity position.”

Mr. Larrea continued: “In response to the evolving markets for our key products, Ferroglobe has taken swift action to optimize our position across our global production base. In this regard, we are curtailing production in our silicon metal and manganese-based alloys businesses in order to take advantage of our diversified portfolio by optimizing production among our most cost effective plants and geographies. We also continue to look at further measures to control our costs, to draw down inventories, and to enhance our free cash flow profile. That said, we are operating in a volatile environment currently and our financial results may continue to be challenged in the near-term.”

Cash Flow and Balance Sheet

Cash used for operations during Q3 2018 was $7.9 million, with working capital increasing by $36.0 million. Net debt was $510.9 million as of September 30, 2018, up from $475.3 million as of June 30, 2018. “We did not meet our cash flow goals in the third quarter,” said Phillip Murnane, Ferroglobe’s CFO. “The deterioration in market conditions during the quarter left us with elevated inventories, a key factor in our decision to curtail our production.”

“Generating free cash flow through improvements in operations, reductions in working capital, non-core asset sales, and lowered interest expense remains our top priority” added Mr. Murnane. “Given our Q3 results, our free cash flow targets for the second half of 2018 have become a ‘stretch’ goal. Regarding the potential refinancing of our $350 million of Senior Notes, we will continue to evaluate the credit markets and will act when the timing is right. In the mean time, our financial position remains strong, with total liquidity of approximately $250 million and no material debt maturities until 2022.”

Discussion of Third Quarter 2018 Results

Sales

Sales for the three months ended September 30, 2018 of $526.8 million were 16.7% higher when compared to sales of $451.6 million for the three months ended September 30, 2017. For the quarter, total shipments were up 14.3% and the average selling price was up 2.1% on Q3 2017. Sales for the nine months ended September 30, 2018 of $1,671 million were up 31.2% when compared to $1,273 million for the nine months ended September 30, 2017. For the nine month period, total shipments were up 16.8% and the average selling price was up 13.2% compared with the same period in 2017. Sales for the quarter and nine month period were aided by the Company’s manganese-based alloy plants in Mo i Rana (Norway) and Dunkirk (France), acquired by the Company on February 1, 2018.

	Quarter Ended		Quarter Ended			Quarter Ended			Nine Months Ended		Nine Months Ended
	September 30, 2018		June 30, 2018		Change	September 30, 2017		Change	September 30, 2018		September 30, 2017		Change
Shipments in metric tons:
Silicon Metal		81,686		85,913	-4.9%		83,465	-2.1%		259,214		242,099	7.1%
Silicon-based Alloys		75,964		78,214	-2.9%		66,873	13.6%		230,506		212,622	8.4%
Manganese-based Alloys		98,280		107,457	-8.5%		73,642	33.5%		276,913		201,745	37.3%
Total shipments*		255,930		271,584	-5.8%		223,980	14.3%		766,633		656,466	16.8%

Average selling price ($/MT):
Silicon Metal	$	2,636	$	2,773	-4.9%	$	2,330	13.1%	$	2,726	$	2,211	23.3%
Silicon-based Alloys	$	1,802	$	1,908	-5.6%	$	1,645	9.5%	$	1,889	$	1,564	20.8%
Manganese-based Alloys	$	1,211	$	1,304	-7.1%	$	1,349	-10.2%	$	1,289	$	1,320	-2.3%
Total*	$	1,841	$	1,943	-5.2%	$	1,803	2.1%	$	1,955	$	1,727	13.2%

Average selling price ($/lb.):
Silicon Metal	$	1.20	$	1.26	-4.9%	$	1.06	13.1%	$	1.24	$	1.00	23.3%
Silicon-based Alloys	$	0.82	$	0.87	-5.6%	$	0.75	9.5%	$	0.86	$	0.71	20.8%
Manganese-based Alloys	$	0.55	$	0.59	-7.1%	$	0.61	-10.2%	$	0.58	$	0.60	-2.3%
Total*	$	0.84	$	0.88	-5.2%	$	0.82	2.1%	$	0.89	$	0.78	13.2%

* Excludes by-products and other

Sales Prices & Volumes By Product

During Q3 2018, the average selling prices decreased by between 5% and 7% for all of our products quarter-over-quarter, reflecting overall market conditions. However, average selling prices for 2018 are well above 2017 for silicon metal and silicon-based alloys, and at levels that are compatible with historical trends. Manganese-based alloys prices in 2018 have significantly deteriorated, despite persistently high ore prices, a situation that should revert going forward based on historical market precedent.

Sales volumes in Q3 also decreased as compared to Q2, primarily as a consequence of seasonal slowdown in Europe and the impact of changing trade flows. Activity to date in 2018 shows healthy growth, with volume increases over the same period in the prior year of 7% to 8% in silicon metal and silicon-based alloys. A year-to-year comparison of manganese-based alloys volumes is inapt in light of the Company’s acquisition of new manganese-based alloy assets earlier this year.

Cost of Sales

Cost of sales was $334.5 million for the three months ended September 30, 2018, an increase from $267.4 million for the three months ended September 30, 2017, primarily driven by higher input costs for raw materials and energy and higher volumes. Cost of sales was $999.0 million for the nine months ended September 30, 2018, an increase from $758.8 million for the same period in 2017, primarily driven by higher sales and increases in raw materials and energy prices, particularly manganese ore and electrodes. Cost of goods sold as a percentage of sales increased to 63.5% for the three months ended September 30, 2018 from 59.2% for the three months ended September 30, 2017, whilst for the nine months ended September 30, 2018, cost of sales as a percentage of sales was 59.8% compared to 59.6% for the nine months ended September 30, 2017.

Staff Costs and Other Operating Expenses

Staff costs and other operating expenses for the three months ended September 30, 2018 and the nine months ended September 30, 2018 were $153.2 million and $470.6 million, respectively compared to $133.9 million and $399.7 million for the corresponding periods in 2017. The increases were primarily related to labour costs for the newly acquired manganese-based alloy plants.

Operating Profit

Operating profit was $14.3 million and $180.4 million, respectively for the three and nine month periods ended September 30, 2018, compared to $27.3 million and $41.3 million for the three and nine month periods ended September 30, 2017. Included in the nine months ended September 30, 2018 was a $44.6 million bargain purchase gain related to the Company’s purchase of manganese-based alloy plants mentioned above.

Net Loss Attributable to the Parent

As a result of the various factors described above, we reported a net loss attributable to the Parent of $1.2 million, or ($0.01) per diluted share, for the three months ended September 30, 2018 and a net loss attributable to the Parent of $3.3 million, or ($0.02) for the three months ended September 30, 2017. We reported net income of $102.9 million, or $0.60 per diluted share, for the nine months ended September 30, 2018, compared to a net loss of $7.0 million, or ($0.04) per diluted share for the nine months ended September 30, 2017.

Adjusted EBITDA

Adjusted EBITDA of $45.0 million, or 8.5% of sales, for the three months ended September 30, 2018 was lower than adjusted EBITDA of $56.1 million, or 12.4% of sales, for the three months ended September 30, 2017. Adjusted EBITDA of $220.9 million, or 13.2% of sales for the nine months ended September 30, 2018, was higher than adjusted EBITDA of $130.9 million, or 10.3% of sales for the nine months ended September 30, 2017.

Other recent developments

In light of financial performance in Q3 2018, near-term market outlook and the Company’s continued focus on cash generation and deleveraging its balance sheet, no interim dividend has been declared or is payable in respect of Q3 2018.

On August 21, 2018 the Company announced a $20 million programme for the purchase of its ordinary shares. 2,894,049 ordinary shares in the Company have been purchased under the programme, of which 1,152,958 shares have been cancelled and 1,741,091 are held in Treasury. The average price paid per share was $6.89. The programme closed on November 7, 2018.

Ferroglobe’s Executive Chairman, Javier López Madrid, has advised the Company that, on October 3, 2018, the Supreme Court of Spain (Tribunal Supremo) substantially confirmed the ruling of the Spanish High Court (Audiencia Nacional) in the case related to the misuse of corporate credit cards by 65 former directors and executives of Bankia S.A and/or Caja Madrid, including Mr López Madrid. The proceeding against Mr López Madrid relates to expenditure totalling €34,807.81 incurred between 2010 and 2012 and has been previously disclosed by the Company in its regulatory filings and its press release of March 16, 2017. Mr. López Madrid has advised the Company that, pursuant to the legal framework applicable to this case, he has applied for a suspension or a replacement of his sentence with the payment of a fine of €7,120. The Company’s Board of Directors has closely monitored the developments in this case, agreed that Mr. López Madrid remain as a director of the Company and continues to support him in his role as Executive Chairman.

Conference Call

Ferroglobe management will review the third quarter results of 2018 during a conference call at 9 a.m. Eastern Time on Tuesday, November 27, 2018.

The dial-in number for participants in the United States is 877‑293‑5491 (conference ID 3499477). International callers should dial +1 914‑495‑8526 (conference ID 3499477). Please dial in at least five minutes prior to the call to register. The call may also be accessed via an audio webcast available at https://edge.media-server.com/m6/p/uz3q9tfh.

About Ferroglobe

Ferroglobe is one of the world’s leading suppliers of silicon metal, silicon-based specialty alloys, and ferroalloys serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe the Company’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.

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. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

Non-IFRS Measures

EBITDA, adjusted EBITDA, adjusted diluted profit per ordinary share and adjusted profit are non-IFRS financial metrics that, we believe, are pertinent measures of Ferroglobe’s success.

Ferroglobe has included these financial metrics to provide supplemental measures of its performance. The Company believes these metrics are important because they eliminate items that have less bearing on the Company’s current and future operating performance and highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures.

INVESTOR CONTACT:
Phillip Murnane: +44 (0) 203 129 2265
Chief Financial Officer
Email: [email protected]

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Income Statement
(in thousands of U.S. dollars, except per share amounts)


	Quarter Ended		Quarter Ended		Quarter Ended		Nine Months Ended		Nine Months Ended
	September 30, 2018		June 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Sales	$	526,838	$	582,977	$	451,628	$	1,670,519	$	1,273,475
Cost of sales		(334,526)		(343,817)		(267,364)		(999,021)		(758,781)
Other operating income		5,701		8,511		7,404		20,998		13,041
Staff costs		(88,668)		(88,743)		(74,183)		(259,834)		(214,836)
Other operating expense		(64,524)		(75,384)		(59,741)		(210,770)		(184,874)
Depreciation and amortization charges, operating allowances and write-downs		(30,750)		(30,309)		(27,076)		(89,075)		(80,699)
Bargain purchase gain		—		44,633		—		44,633		—
Other gain (loss)		221		2,752		(3,411)		2,936		(6,002)
Operating profit		14,292		100,620		27,257		180,386		41,324
Net finance expense		(13,952)		(14,412)		(14,528)		(41,520)		(42,045)
Financial derivatives gain (loss)		388		2,832		(1,823)		1,455		(5,894)
Exchange differences		(3,071)		(8,708)		(1,529)		(11,050)		5,714
(Loss) profit before tax		(2,343)		80,332		9,377		129,271		(901)
Income tax expense		(573)		(14,302)		(14,364)		(30,543)		(11,201)
(Loss) profit for the period		(2,916)		66,030		(4,987)		98,728		(12,102)
Loss attributable to non-controlling interest		1,671		1,408		1,640		4,145		5,060
(Loss) profit attributable to the parent	$	(1,245)	$	67,438	$	(3,347)	$	102,873	$	(7,042)


EBITDA	$	45,042	$	130,929	$	54,333	$	269,461	$	122,023
Adjusted EBITDA	$	45,042	$	86,296	$	56,110	$	220,942	$	130,863

Weighted average shares outstanding
Basic		171,935		171,987		171,947		171,966		171,947
Diluted		171,935		172,127		171,947		172,104		171,947

(Loss) profit per ordinary share
Basic	$	(0.01)	$	0.39	$	(0.02)	$	0.60	$	(0.04)
Diluted	$	(0.01)	$	0.39	$	(0.02)	$	0.60	$	(0.04)

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Financial Position
(in thousands of U.S. dollars)


	September 30,		June 30,		December 31,
	2018		2018		2017
ASSETS
Non-current assets
Goodwill	$	204,264	$	203,717	$	205,287
Other intangible assets		55,997		57,897		58,658
Property, plant and equipment		941,780		947,229		917,974
Non-current financial assets		88,199		116,974		89,315
Deferred tax assets		6,679		3,972		5,273
Non-current receivables from related parties		2,315		2,332		2,400
Other non-current assets		18,206		18,887		30,059
Total non-current assets		1,317,440		1,351,008		1,308,966
Current assets
Inventories		554,676		532,574		361,231
Trade and other receivables		142,233		151,062		111,463
Current receivables from related parties		5,571		5,550		4,572
Current income tax assets		15,848		10,405		17,158
Current financial assets		2		854		2,469
Other current assets		12,898		18,283		9,926
Cash and cash equivalents		131,671		155,984		184,472
Total current assets		862,899		874,712		691,291
Total assets	$	2,180,339	$	2,225,720	$	2,000,257

EQUITY AND LIABILITIES
Equity	$	987,388	$	1,004,125	$	937,758
Non-current liabilities
Deferred income		4,336		5,387		3,172
Provisions		78,846		78,767		82,397
Bank borrowings		133,056		108,143		—
Obligations under finance leases		57,389		61,078		69,713
Debt instruments		341,102		340,564		339,332
Other financial liabilities		39,867		42,138		49,011
Other non-current liabilities		20,367		21,178		3,536
Deferred tax liabilities		67,513		64,689		65,142
Total non-current liabilities		742,476		721,944		612,303
Current liabilities
Provisions		24,308		22,563		33,095
Bank borrowings		1,341		1,241		1,003
Obligations under finance leases		13,019		13,024		12,920
Debt instruments		2,734		10,936		10,938
Other financial liabilities		54,027		54,158		88,420
Payables to related parties		12,273		17,599		12,973
Trade and other payables		253,591		276,289		192,859
Current income tax liabilities		6,435		4,210		7,419
Other current liabilities		82,747		99,631		90,569
Total current liabilities		450,475		499,651		450,196
Total equity and liabilities	$	2,180,339	$	2,225,720	$	2,000,257

Ferroglobe PLC and Subsidiaries
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands of U.S. dollars)


	Quarter Ended		Quarter Ended		Quarter Ended		Nine Months Ended		Nine Months Ended
	September 30, 2018		June 30, 2018		September 30, 2017		September 30, 2018		September 30, 2017
Cash flows from operating activities:
(Loss) profit for the period	$	(2,916)	$	66,030	$	(4,987)	$	98,728	$	(12,102)
Adjustments to reconcile net (loss) profit to net cash used by operating activities:
Income tax expense		573		14,302		14,364		30,543		11,201
Depreciation and amortization charges, operating allowances and write-downs		30,750		30,309		27,076		89,075		80,699
Net finance expense		13,952		14,412		14,528		41,520		42,045
Financial derivatives (gain) loss		(388)		(2,832)		1,823		(1,455)		5,894
Exchange differences		3,071		8,708		1,529		11,050		(5,714)
Bargain purchase gain		—		(44,633)		—		(44,633)		—
Share-based compensation		1,050		33		—		1,782		—
Other adjustments		(221)		(2,752)		3,445		(2,936)		6,037
Changes in operating assets and liabilities
Increase in inventories		(25,666)		(59,050)		(4,372)		(192,197)		(9,207)
Decrease (increase) in trade receivables		6,224		(19,257)		(90,108)		(13,546)		(76,887)
(Decrease) increase in trade payables		(21,213)		476		3,370		49,638		12,583
Other		10,543		6,817		6,631		(32,410)		(28,420)
Income taxes paid		(5,257)		(14,186)		(3,768)		(29,425)		(9,984)
Interest paid		(18,400)		(2,957)		(22,249)		(38,658)		(36,356)
Net cash used by operating activities		(7,898)		(4,580)		(52,718)		(32,924)		(20,211)
Cash flows from investing activities:
Payments due to investments:
Other intangible assets		(149)		(2,221)		(88)		(3,073)		(498)
Property, plant and equipment		(25,696)		(29,778)		(14,692)		(78,005)		(41,373)
Other		—		(8)		—		(8)		(14)
Disposals:
Other non-current assets		—		12,734		—		12,734		—
Other		947		1,904		—		6,861		—
Acquisition of subsidiary		—		—		—		(20,379)		—
Interest and finance income received		638		2,273		54		2,990		618
Net cash used by investing activities		(24,260)		(15,096)		(14,726)		(78,880)		(41,267)
Cash flows from financing activities:
Dividends paid		(10,321)		(10,321)		—		(20,642)		—
Payment for debt issuance costs		—		—		(3,210)		(4,476)		(16,765)
Repayment of other financial liabilities		—		(33,096)		—		(33,096)		—
Proceeds from debt issuance		—		—		—		—		350,000
Increase/(decrease) in bank borrowings:
Borrowings		25,286		37,668		118,468		245,318		149,923
Payments		—		—		(38,296)		(106,514)		(425,976)
Proceeds from stock option exercises		—		240		—		240		—
Other amounts paid due to financing activities		(3,067)		(4,648)		(990)		(10,702)		(18,895)
Payments to acquire or redeem own shares		(3,502)		—		—		(3,502)		—
Net cash provided (used) by financing activities		8,396		(10,157)		75,972		66,626		38,287
Total net cash flows for the period		(23,762)		(29,833)		8,528		(45,178)		(23,191)
Beginning balance of cash and cash equivalents		155,984		197,669		183,561		184,472		196,982
Exchange differences on cash and cash equivalents in foreign currencies		(551)		(11,852)		(2,326)		(7,623)		15,972
Ending balance of cash and cash equivalents	$	131,671	$	155,984	$	189,763	$	131,671	$	189,763

Adjusted EBITDA ($,000):
	Quarter Ended			Quarter Ended			Quarter Ended			Nine Months Ended			Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
(Loss) profit attributable to the parent	$	(1,245	)	$	67,438		$	(3,347	)	$	102,873		$	(7,042	)
Loss attributable to non-controlling interest		(1,671	)		(1,408	)		(1,640	)		(4,145	)		(5,060	)
Income tax expense		573			14,302			14,364			30,543			11,201
Net finance expense		13,952			14,412			14,528			41,520			42,045
Financial derivatives (gain) loss		(388	)		(2,832	)		1,823			(1,455	)		5,894
Exchange differences		3,071			8,708			1,529			11,050			(5,714	)
Depreciation and amortization charges, operating allowances and write-downs		30,750			30,309			27,076			89,075			80,699
EBITDA		45,042			130,929			54,333			269,461			122,023
Non-controlling interest settlement		—			—			—			—			1,751
Power credit		—			—			—			—			(3,696	)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			2,608
Accrual of contingent liabilities		—			—			—			—			6,400
Business interruption		—			—			(1,980	)		—			(1,980	)
Step-up valuation adjustment		—			—			3,757			—			3,757
Bargain purchase gain		—			(44,633	)		—			(44,633	)		—
Share-based compensation		—			—			—			(3,886	)		—
Adjusted EBITDA	$	45,042		$	86,296		$	56,110		$	220,942		$	130,863

Adjusted profit attributable to Ferroglobe ($,000):
	Quarter Ended			Quarter Ended			Quarter Ended			Nine Months Ended			Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
(Loss) profit attributable to the parent	$	(1,245	)	$	67,438		$	(3,347	)	$	102,873		$	(7,042	)
Tax rate adjustment		1,322			(11,404	)		11,363			(10,824	)		11,489
Non-controlling interest settlement		—			—			—			—			1,191
Power credit		—			—			—			—			(2,513	)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			1,773
Accrual of contingent liabilities		—			—			—			—			4,352
Business interruption		—			—			(1,346	)		—			(1,346	)
Step-up valuation adjustment		—			—			2,555			—			2,555
Bargain purchase gain		—			(30,350	)		—			(30,350	)		—
Share-based compensation		—			—			—			(2,642	)		—
Adjusted profit attributable to the parent	$	77		$	25,684		$	9,225		$	59,057		$	10,459

Adjusted diluted profit per share:
	Quarter Ended			Quarter Ended			Quarter Ended			Nine Months Ended			Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Diluted (loss) profit per ordinary share	$	(0.01	)	$	0.39		$	(0.02	)	$	0.60		$	(0.04	)
Tax rate adjustment		0.01			(0.07	)		0.07			(0.06	)		0.07
Non-controlling interest settlement		—			—			—			—			0.01
Power credit		—			—			—			—			(0.01	)
Long lived asset charge due to reclassification of discontinued operations to continuing operations		—			—			—			—			0.01
Accrual of contingent liabilities		—			—			—			—			0.03
Business interruption		—			—			(0.01	)		—			(0.01	)
Step-up valuation adjustment		—			—			0.01			—			0.01
Bargain purchase gain		—			(0.18	)		—			(0.18	)		—
Share-based compensation		—			—			—			(0.02	)		—
Adjusted diluted profit per ordinary share	$	0.00		$	0.14		$	0.05		$	0.34		$	0.07

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