GrafTech International Ltd. Files Q3 2024 10-Q

TL;DR

GrafTech's Q3 2024 10-Q is in. Check financials.

AI Summary

GrafTech International Ltd. reported its third-quarter results for the period ending September 30, 2024. The company's financial statements and disclosures are contained within this 10-Q filing. Specific financial figures and operational details for the quarter and year-to-date are presented.

Why It Matters

This filing provides investors and analysts with the latest financial performance and operational status of GrafTech International Ltd., crucial for understanding the company's current health and future prospects.

Risk Assessment

Risk Level: medium — 10-Q filings are standard financial reports, but the specific content can reveal significant financial health indicators or operational changes that may impact risk.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-01-01 — Fiscal Year Start Date (Marks the beginning of the fiscal year for which year-to-date data is presented.)
• 2023-12-31 — Prior Year End Date (Provides a comparative point from the end of the previous fiscal year.)

Key Players & Entities

• GRAFTECH INTERNATIONAL LTD (company) — Filer
• 20240930 (date) — Period of Report
• 20241112 (date) — Filed as of Date
• 272496053 (dollar_amount) — IRS Number
• 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-20240930.htm (10-Q) — 1298KB
• a2024-3q10qex311.htm (EX-31.1) — 10KB
• a2024-3q10qex312.htm (EX-31.2) — 10KB
• a2024-3q10qex321.htm (EX-32.1) — 6KB
• a2024-3q10qex322.htm (EX-32.2) — 6KB
• gti-20240930_g1.jpg (GRAPHIC) — 14KB
• 0000931148-24-000121.txt ( ) — 6561KB
• gti-20240930.xsd (EX-101.SCH) — 46KB
• gti-20240930_cal.xml (EX-101.CAL) — 61KB
• gti-20240930_def.xml (EX-101.DEF) — 217KB
• gti-20240930_lab.xml (EX-101.LAB) — 579KB
• gti-20240930_pre.xml (EX-101.PRE) — 440KB
• gti-20240930_htm.xml (XML) — 776KB

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 ' (Deficit) 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 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 43

OTHER INFORMATION

PART II. OTHER INFORMATION:

Legal Proceedings

Item 1. Legal Proceedings 44

Risk Factors

Item 1A. Risk Factors 46

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47 SIGNATURE 48 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 September 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, the proposed Transactions, short-term and long-term liquidity, expectations regarding the effect of the Transactions, 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 le

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) September 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 141,406 $ 176,878 Accounts and notes receivable, net of allowance for doubtful accounts of $ 7,672 as of September 30, 2024 and $ 7,708 as of December 31, 2023 89,516 101,387 Inventories 266,459 330,146 Prepaid expenses and other current assets 60,611 66,382 Total current assets 557,992 674,793 Property, plant and equipment 933,502 920,444 Less: accumulated depreciation 436,815 398,330 Net property, plant and equipment 496,687 522,114 Deferred income taxes 36,599 31,542 Other assets 51,720 60,440 Total assets $ 1,142,998 $ 1,288,889 LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY Current liabilities: Accounts payable $ 55,112 $ 83,268 Long-term debt, current maturities 139 134 Accrued income and other taxes 10,085 10,022 Other accrued liabilities 79,906 91,702 Tax Receivable Agreement 1,949 5,417 Total current liabilities 147,191 190,543 Long-term debt 929,313 925,511 Other long-term obligations 47,760 55,645 Deferred income taxes 23,944 33,206 Tax Receivable Agreement long-term 3,788 5,737 Commitments and contingencies - Note 7 Stockholders' (deficit) 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 September 30, 2024 and December 31, 2023, respectively 2,572 2,568 Additional paid-in capital 753,796 749,527 Accumulated other comprehensive loss ( 21,378 ) ( 11,458 ) Accumulated deficit ( 743,988 ) ( 662,390 ) Total stockholders' (deficit) equity ( 8,998 ) 78,247 Total liabilities and stockholders' (deficit) equity $ 1,142,998 $ 1,288,889 See accompanying Notes to the Condensed Consolidated Financial

(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 September 30, Nine Months Ended September 30, 2024 2023 2024 2023 (Dollars in thousands) Graphite Electrodes - LTAs $ 22,697 $ 66,344 $ 85,386 $ 212,579 Graphite Electrodes - Non-LTAs 97,198 88,629 283,303 246,726 By-products and other 10,759 4,019 35,876 24,050 Total Revenues $ 130,654 $ 158,992 $ 404,565 $ 483,355 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. Paymen

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View this 10-Q filing on SEC EDGAR