Vice President, Investor Relations
GrafTech Reports First Quarter 2019 Results
BROOKLYN HEIGHTS, Ohio - May 1, 2019 - GrafTech International Ltd. (NYSE: EAF) (GrafTech or the Company) today announced financial results for the quarter ended March 31, 2019, including net income of $197 million, or $0.68 per share, and Adjusted EBITDA from continuing operations of $284 million.
"GrafTech reported another successful quarter including net sales of $475 million and net income of $197 million,” said David Rintoul, President and Chief Executive Officer. “With these solid results, during the year we plan to continue to return cash to shareholders and repay debt.”
Key Financial Measures
For the Three Months Ended March 31,
(dollars in thousands, except per share amounts)
Earnings per share (1)
Adjusted EBITDA from continuing operations (2)
(1) Earnings per share represents diluted earnings per share after giving effect to the stock split effected on April 12, 2018 for both periods and the share repurchase effected on August 13, 2018, resulting in weighted average shares outstanding of 290,566,163 and 302,225,923 for the three months ended March 31, 2019 and 2018, respectively.
(2) A non-GAAP financial measure, see below for more information and a reconciliation of EBITDA from continuing operations and Adjusted EBITDA from continuing operations to Net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP.
Net sales for the quarter ended March 31, 2019 increased to $475 million compared to $452 million in the first quarter of 2018. The improvement was primarily due to higher sales volumes of GrafTech manufactured graphite electrodes. These sales volumes increased to 45 thousand metric tons (MT) from 42 thousand metric tons in the prior year period. The weighted average realized price of these graphite electrodes was $9,954 per metric ton, in line with the prior year period.
Net income for the first quarter of 2019 decreased to $197 million, or $0.68 per share, compared to $224 million, or $0.74 per share in the first quarter of 2018. Adjusted EBITDA from continuing operations also decreased to $284 million in the first quarter of 2019 compared to $310 million in the first quarter of 2018. Higher graphite electrode sales volumes were offset by higher cost of sales due to higher prices for third party needle coke.
Cash flow from operating activities increased to $157 million in the first quarter of 2019 from $141 million in the comparable period of 2018. First quarter 2018 cash flow from operating activities was impacted primarily by a significant one-time change in accounts receivable due to higher pricing for graphite electrodes. First quarter cash
The following information was filed by Graftech International Ltd (EAF) on Wednesday, May 1, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.