GrafTech International(EAF) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 were $131 million, an 18$159 million in Q3 2023[8] - The net loss for Q3 2024 was $36 million, or$0.14 per share, compared to a net loss of $23 million, or$0.09 per share in Q3 2023[9] - Adjusted EBITDA was negative $6 million in Q3 2024, down from$1 million in Q3 2023, primarily due to lower realized prices and a shift in business mix[10] - Gross loss for Q3 2024 was $(12.074) million, compared to a gross profit of$1.389 million in Q3 2023[44] - Operating loss for Q3 2024 increased to $(26.280) million from$(18.137) million in Q3 2023[44] - Net loss for Q3 2024 was $(36.068) million, compared to$(22.621) million in Q3 2023, representing a 59.5% increase in losses[44] - Adjusted net loss for Q3 2024 was $(34.276) million, compared to$(20.866) million in Q3 2023[48] - Diluted loss per share for Q3 2024 was $(0.14), compared to$(0.09) in Q3 2023[49] Sales and Production - Sales volume increased by 9% year-over-year to 26.4 thousand metric tons in Q3 2024[13] - Production volume was 19.4 thousand metric tons in Q3 2024, a 15% decrease compared to Q3 2023 due to planned production shutdowns[15] - Net sales for Q3 2024 were $130.654 million, a decrease of 17.8$158.992 million in Q3 2023[44] - Sales volume in Q3 2024 was 26.4 thousand MT, an increase from 25.5 thousand MT in Q3 2023[53] Costs and Expenses - Cash costs on a per metric ton basis declined by 28% year-over-year in Q3 2024[6] - The company anticipates a 20% year-over-year decline in cash cost of goods sold per metric ton for the full year of 2024[18] - Cash cost of goods sold per MT decreased to $4,197 in Q3 2024 from$5,863 in Q3 2023, indicating improved cost efficiency[53] - Interest expense increased to $16.503 million in Q3 2024 from$15.719 million in Q3 2023[51] - The company reported a cash cost of goods sold per metric ton (MT) as a key measure for evaluating costs[37] Cash Flow and Liquidity - Cash flow from operating activities for Q3 2024 was $23.709 million, down from$51.495 million in Q3 2023[46] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $(13.676) million, compared to$67.269 million for the same period in 2023[46] - As of September 30, 2024, the company had liquidity of $253.8 million, consisting of cash and cash equivalents of$141.4 million[17] - The company is focused on evaluating liquidity through free cash flow and adjusted free cash flow measures[35] - Free cash flow for Q3 2024 was $19.682 million, a recovery from$(43.834) million in Q2 2024[52] Debt and Equity - As of September 30, 2024, total liabilities and stockholders' equity amounted to $1,142,998, a decrease from$1,288,889 as of December 31, 2023[40] - The company has a long-term debt of $929,313, which is slightly up from$925,511[40] - Total current liabilities decreased to $147,191 from$190,543[41] - Cash and cash equivalents decreased to $141,406 as of September 30, 2024, down from$176,878 at the end of 2023[41] - The accumulated deficit increased to $743,988 as of September 30, 2024, compared to$662,390 at the end of 2023[40] Management Focus - Adjusted EBITDA is the primary metric used by management to establish budgets and operational goals, reflecting the company's focus on operational performance[30] - The company is focusing on rationalization-related expenses, with adjustments reflecting ongoing cost management strategies[51] - The company expects a low double-digit percentage point year-over-year improvement in sales volume for the full year of 2024[17] Research and Development - Research and development expenses for Q3 2024 were $1.245 million, slightly down from$1.295 million in Q3 2023[44] Capital Expenditures - Capital expenditures in Q3 2024 were $(4.027) million, a decrease from$(8.498) million in Q3 2023[46] - Capital expenditures for Q3 2024 were $4.027 million, down from$6.979 million in Q2 2024[52]