GrafTech International Ltd. Files 10-Q for Q2 2024

TL;DR

GrafTech's Q2 2024 10-Q is in. Check the financials.

AI Summary

GrafTech International Ltd. reported its financial results for the second quarter ended June 30, 2024. The company's filing details its financial position and performance for the period. Specific financial figures and operational details are provided within the report.

Why It Matters

This 10-Q filing provides investors and analysts with the latest official financial data for GrafTech International Ltd., crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific details within can reveal significant financial health indicators or operational challenges.

Key Numbers

• 20240630 — Period End Date (The report covers the financial period ending on this date.)
• 20240726 — Filing Date (The date the report was officially submitted to the SEC.)

Key Players & Entities

• GRAFTECH INTERNATIONAL LTD (company) — Filer
• 20240630 (date) — Period of Report
• 20240726 (date) — Filing Date
• UCAR INTERNATIONAL INC (company) — Former Company Name

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common stock, $0.01 par value per share EAF New York Stock

Filing Documents

• gti-20240630.htm (10-Q) — 1247KB
• exhibit101-ceoofferletterf.htm (EX-10.1) — 18KB
• a2024-2q10qex311.htm (EX-31.1) — 10KB
• a2024-2q10qex312.htm (EX-31.2) — 10KB
• a2024-2q10qex321.htm (EX-32.1) — 6KB
• a2024-2q10qex322.htm (EX-32.2) — 6KB
• gti-20240630_g1.jpg (GRAPHIC) — 14KB
• image_0.jpg (GRAPHIC) — 53KB
• 0000931148-24-000101.txt ( ) — 6513KB
• gti-20240630.xsd (EX-101.SCH) — 44KB
• gti-20240630_cal.xml (EX-101.CAL) — 61KB
• gti-20240630_def.xml (EX-101.DEF) — 203KB
• gti-20240630_lab.xml (EX-101.LAB) — 570KB
• gti-20240630_pre.xml (EX-101.PRE) — 425KB
• gti-20240630_htm.xml (XML) — 767KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION:

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets (unaudited) 5 Condensed Consolidated Statements of Operations and Comprehensive Loss (unaudited) 6 Condensed Consolidated Statements of Cash Flows (unaudited) 7 Condensed Consolidated Statements of Stockholders' Equity (unaudited) 8 Notes to the Condensed Consolidated Financial Statements (unaudited) 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures

Item 4. Controls and Procedures 42

OTHER INFORMATION

PART II. OTHER INFORMATION:

Legal Proceedings

Item 1. Legal Proceedings 43

Risk Factors

Item 1A. Risk Factors 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 46 SIGNATURE 47 Presentation of Financial, Market and Industry Data We present our financial information on a consolidated basis. Unless otherwise noted, when we refer to dollars, we mean U.S. dollars. Certain market and industry data included in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2024 (the "Report") has been obtained or derived from third-party sources that we believe to be reliable. Market estimates are calculated by using independent industry publications, government publications and third-party forecasts in conjunction with our assumptions about our markets. We cannot guarantee the accuracy or completeness of this market and market share data and have not independently verified it. None of the sources consented to the disclosure or use of data in this Report. While we are not aware of any misstatements regarding any market, industry or similar data presented herein, such data involves risks and uncertainties and is subject to change based on various factors, including those discussed under the headings "Cautionary Note Regarding Forward-Looking Statements" in this Report and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 ("Annual Report on Form 10-K") filed on February 14, 2024. Cautionary Note Regarding Forward-Looking Statements This Report may contain forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect our current views with respect to, among other things, financial projections, plans and objectives of management for future operations, and future economic performance. Examples of forward-looking statements include, among others, statements we make regarding future estimated volume, pricing and revenue, anticipated levels of capital expenditures and cost of goods sold, anticipated reduction in our costs resulting from our cost rationaliza

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) (Unaudited) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 120,726 $ 176,878 Accounts and notes receivable, net of allowance for doubtful accounts of $ 7,942 as of June 30, 2024 and $ 7,708 as of December 31, 2023 95,043 101,387 Inventories 304,786 330,146 Prepaid expenses and other current assets 62,448 66,382 Total current assets 583,003 674,793 Property, plant and equipment 913,710 920,444 Less: accumulated depreciation 418,157 398,330 Net property, plant and equipment 495,553 522,114 Deferred income taxes 30,793 31,542 Other assets 53,648 60,440 Total assets $ 1,162,997 $ 1,288,889 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 61,011 $ 83,268 Long-term debt, current maturities 132 134 Accrued income and other taxes 9,791 10,022 Other accrued liabilities 65,245 91,702 Tax Receivable Agreement 1,949 5,417 Total current liabilities 138,128 190,543 Long-term debt 928,046 925,511 Other long-term obligations 52,723 55,645 Deferred income taxes 24,073 33,206 Tax Receivable Agreement long-term 3,788 5,737 Commitments and contingencies - Note 7 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, 257,167,127 and 256,831,870 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 2,572 2,568 Additional paid-in capital 751,958 749,527 Accumulated other comprehensive loss ( 30,371 ) ( 11,458 ) Accumulated deficit ( 707,920 ) ( 662,390 ) Total stockholders' equity 16,239 78,247 Total liabilities and stockholders' equity $ 1,162,997 $ 1,288,889 See accompanying Notes to the Condensed Consolidated Financial Statements 5 Table of Contents GRAFTECH INTERNATIONA

(CONT'D)

PART I (CONT'D) GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (1) Organization and Summary of Significant Accounting Policies A. Organization GrafTech International Ltd. (the "Company" or "GrafTech") is a leading manufacturer of high-quality graphite electrode products essential to the production of electric arc furnace ("EAF") steel and other ferrous and non-ferrous metals. References herein to "GTI," "we," "our," or "us" refer collectively to the Company and its subsidiaries. The Company's common stock is listed on the New York Stock Exchange under the symbol "EAF." The Company's only reportable segment, Industrial Materials, is comprised of its two major product categories: graphite electrodes and petroleum needle coke products. Petroleum needle coke is our key raw material used in the production of graphite electrodes. The Company's vision is to provide highly engineered graphite electrode products, services and solutions to EAF operators. B. Basis of Presentation The interim condensed consolidated financial statements are unaudited; however, in the opinion of management, they have been prepared in accordance with Rule 10-01 of Regulation S-X and in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The December 31, 2023 Consolidated Balance Sheet data included herein was derived from the audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed on February 14, 2024, but does not include all disclosures required by GAAP in audited financial statements. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the accompanying notes, contained in the Company's Annual Report on Form 10-K. The unaudited condensed consolidated financial statements reflect all adjustments

(CONT'D)

PART I (CONT'D) GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (2) Revenue from Contracts with Customers Disaggregation of Revenue The following table provides information about disaggregated revenue by type of product and contract, including our take or pay contracts with initial terms of three to five years ("LTA") and short-term agreements and spot sales ("non-LTA"): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 (Dollars in thousands) Graphite Electrodes - LTAs $ 26,595 $ 76,369 $ 62,689 $ 146,235 Graphite Electrodes - Non-LTAs 98,212 101,137 186,105 158,097 By-products and other 12,520 8,055 25,117 20,031 Total Revenues $ 137,327 $ 185,561 $ 273,911 $ 324,363 Contract Balances Substantially all of the Company's receivables relate to contracts with customers. Accounts receivables are recorded when the right to consideration becomes unconditional. Payment terms on invoices range from 30 to 120 days depending on the customary business practices of the jurisdictions in which we do business. Certain short-term and longer-term sales contracts require up-front payments prior to the Company's fulfillment of any performance obligation. These contract liabilities are recorded as current or long-term deferred revenue, depending on the lag between the pre-payment and the expected delivery of the related products. Additionally, deferred revenue or contract assets originate from contracts where the allocation of the transaction price to the performance obligations based on their relative stand-alone selling prices results in the timing of revenue recognition being different from the timing of the invoicing. In this case, deferred revenue is amortized into revenue based on the transaction price allocated to the remaining performance obligations and contract assets are realized through the contract invoicing. We did not have any contract asset balances as of June 3

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