Covia Holdings Corp

CIK:0001722287|SEC Filings

Condensed Consolidated Statements of Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Income Statement [Abstract]
Revenues	$ 229,360	$ 408,957	$ 771,553	$ 1,282,139
Cost of goods sold (excluding depreciation, depletion, and amortization shown separately)	165,835	332,234	600,943	1,039,763
Operating expenses
Selling, general and administrative expenses	28,093	35,628	91,284	116,232
Depreciation, depletion and amortization expense	27,730	51,920	93,769	169,219
Asset impairments		7,761	298,299	7,761
Restructuring and other charges	1,086	3,378	35,999	14,915
Loss (gain) on sale of subsidiaries	(67)	(127,195)	897	(127,195)
Other operating expense (income), net	(883)	18	(3,786)	(4,704)
Income (loss) from operations	7,566	105,213	(345,852)	66,148
Interest expense, net (contractual interest for the three months ended September 30, 2020, $32,144)	1,714	26,894	84,637	79,896
Reorganization items, net	214,340		238,656
Other non-operating expense, net	670	1,924	6,265	5,682
Income (loss) before provision (benefit) for income taxes	(209,158)	76,395	(675,410)	(19,430)
Provision (benefit) for income taxes	(3,278)	22,471	(32,937)	13,281
Net income (loss)	(205,880)	53,924	(642,473)	(32,711)
Less: Net income (loss) attributable to the non-controlling interest	(34)	152	(64)	156
Net income (loss) attributable to Covia Holdings Corporation	$ (205,846)	$ 53,772	$ (642,409)	$ (32,867)
Earnings (loss) per share
Basic	$ (1.57)	$ 0.41	$ (4.88)	$ (0.25)
Diluted	$ (1.57)	$ 0.41	$ (4.88)	$ (0.25)
Weighted average number of shares outstanding
Basic	130,950	131,562	131,617	131,437
Diluted	130,950	131,745	131,617	131,437

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Statement Of Cash Flows [Abstract]
Net loss attributable to Covia Holdings Corporation	$ (642,409)	$ (32,867)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion, and amortization	93,769	169,219
Amortization of deferred financing costs	2,483	4,626
Asset impairments	298,299	7,761
(Gain) loss on disposal of fixed assets	(2,376)	2,255
Gain on sale of subsidiaries		(127,195)
Deferred income tax provision (benefit)	(2,182)	6,414
Stock compensation expense	1,978	8,378
Non-cash loss on derivatives	35,820
Non-cash reorganization items, net	224,466
Net income (loss) from non-controlling interest	(64)	156
Other, net	(26,171)	5,037
Change in operating assets and liabilities:
Accounts receivable	63,796	13,303
Inventories	13,057	19,768
Prepaid expenses and other assets	(46,415)	6,078
Accounts payable	9,106	(22,950)
Accrued expenses	(18,495)	8,812
Net cash provided by operating activities	4,662	68,795
Cash flows from investing activities
Capital expenditures	(28,773)	(75,063)
Capitalized interest	(966)	(6,772)
Proceeds from sale of fixed assets	4,867	2,998
Proceeds from sale of subsidiaries		234,014
Net cash provided by (used in) investing activities	(24,872)	155,177
Cash flows from financing activities
Payments on Term Loan	(7,931)	(12,375)
Payments on other long-term debt	(66)	(1,664)
Payments on finance lease liabilities	(2,339)	(3,460)
Tax payments for withholdings on share-based awards exercised or distributed	(187)	(602)
Net cash used in financing activities	(10,523)	(18,101)
Effect of foreign currency exchange rate changes	(2,259)	125
Increase (decrease) in cash, cash equivalents and restricted cash	(32,992)	205,996
Cash, cash equivalents and restricted cash
Beginning of period	319,484	134,130
End of period	286,492	340,126
Supplemental disclosure of cash flow information:
Interest paid, net of capitalized interest	(50,636)	(49,966)
Income taxes paid	(10,364)	(11,522)
Non-cash increase in asset retirement obligations	6,514
Cash paid for reorganization items, net	(3,289)
Non-cash investing activities:
Capital expenditures and capitalized interest in accounts payable and accrued expenses	2,722	1,272
Right-of-use assets obtained (terminated) in exchange for lease liabilities	$ (72,893)	$ 419,157

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Current assets
Cash and cash equivalents	$ 246,888	$ 319,484
Restricted cash	39,604
Accounts receivable, net of allowance for doubtful accounts of $4,566 and $2,211 at September 30, 2020 and December 31, 2019, respectively	132,364	199,027
Inventories, net	106,089	121,790
Other receivables	53,370	15,879
Prepaid expenses and other current assets	27,835	20,843
Total current assets	606,150	677,023
Property, plant and equipment, net	1,050,887	1,419,982
Operating right-of-use assets, net	68,699	158,489
Deferred tax assets, net	9,646	13,725
Goodwill	119,822	119,822
Intangibles, net	28,384	33,630
Other non-current assets	26,746	23,847
Total assets	1,910,334	2,446,518
Current liabilities
Current portion of long-term debt	544	18,633
Operating lease liabilities, current	3,493	63,773
Accounts payable	41,756	97,313
Accrued expenses	64,063	126,895
Deferred revenue	9,148	7,815
Total current liabilities	119,004	314,429
Long-term debt	864	1,539,073
Operating lease liabilities, non-current	15,098	272,378
Employee benefit obligations	64,436	66,073
Deferred tax liabilities, net	131	131
Other non-current liabilities	67,699	77,270
Total liabilities not subject to compromise	267,232	2,269,354
Liabilities subject to compromise	2,104,796
Total liabilities	2,372,028	2,269,354
Commitments and contingent liabilities (Note 16)
Equity (deficit)
Preferred stock: $0.01 par value, 15,000 authorized shares at September 30, 2020 and December 31, 2019 Shares outstanding: 0 at September 30, 2020 and December 31, 2019
Common stock: $0.01 par value, 750,000 authorized shares September 30, 2020 and December 31, 2019 Shares issued: 158,195 at September 30, 2020 and December 31, 2019 Shares outstanding: 132,098 and 131,743 at September 30, 2020 and December 31, 2019, respectively	1,777	1,777
Additional paid-in capital	395,609	400,047
Retained earnings (deficit)	(284,552)	357,857
Accumulated other comprehensive loss	(103,449)	(105,086)
Total equity attributable to Covia Holdings Corporation before treasury stock	9,385	654,595
Less: Treasury stock at cost Shares in treasury: 26,097 and 26,452 at September 30, 2020 and December 31, 2019, respectively	(471,694)	(478,110)
Total equity (deficit) attributable to Covia Holdings Corporation	(462,309)	176,485
Non-controlling interest	615	679
Total equity (deficit)	(461,694)	177,164
Total liabilities and equity	$ 1,910,334	$ 2,446,518