Cash Flow and Liquidity
At December 31, 2012, the Company's total available cash and cash equivalents was $379.7 million, compared to $109.1 million at December 31, 2011. If highly liquid short-term investments are included with available cash, the Company's balance sheet liquidity totaled $641.7 million at December 31, 2012, an increase from $158.6 million at December 31, 2011. Most of the net increase in cash during 2012 is attributable to the sale of $396.75 million of convertible debentures in October. Of the Company's cash balance at the end of 2012, $43.4 million is dedicated to the Marathon project (and other related properties) and is unavailable for other corporate purposes. Net working capital -- comprised of total current assets (including available cash and short-term investments), less current liabilities -- increased to $606.0 million at December 31, 2012, from $251.6 million at year end 2011. The December 31, 2012 amount includes $166.5 million reclassified as the current portion of long-term debt, reflecting the Company's existing 1.875% convertible debentures that are expected to be redeemed in cash by their holders on March 15, 2013.
Net cash provided by operating activities (which includes changes in working capital) in the fourth quarter of 2012 totaled $3.8 million, compared to $91.8 million of cash provided in the fourth quarter of 2011. Capital expenditures (adjusted to include incurred but unpaid obligations at the end of each period) were $30.6 million in the fourth quarter of 2012, a little higher than the $27.0 million reported for the fourth quarter of 2011. For the full year 2012, net cash provided by operating activities totaled $103.9 million, down from $219.7 million for the year 2011, reflecting lower PGM prices and higher cash costs in 2012. Capital expenditures for the full year 2012 totaled $117.1 million (including capitalized interest and obligations incurred but unpaid at year end), compared to $104.1 million for the year 2011.
Outstanding debt at December 31, 2012, was $461.1 million, up from $196.0 million at December 31, 2011. The Company's debt includes $424.7 million outstanding in the form of convertible debentures, $29.6 million of exempt facility revenue bonds due in 2020, a capital lease of $6.5 million and $0.3 million for a small installment land purchase. On October 17, 2012, the Company completed the issuance and sale of $396.75 million of 1.75% convertible senior unsecured notes due in 2032. In accordance with U.S. generally accepted accounting principles, the value of these newly-issued convertible debentures, which can be settled upon conversion in any combination of cash and common shares at the Company's discretion, has been bifurcated into a $255.2 million long-term debt component and a $141.5 million equity component that reflects the value of the embedded conversion feature. The Company intends to use the net proceeds from this offering to repay amounts that may come due under the Company's outstanding 1.875% convertible debentures in March 2013, and for general corporate purposes.
Year End Results Webcast and Conference Call
Stillwater Mining Company will conduct a conference call to discuss fourth quarter results at approximately 12:00 p.m. Eastern Daylight Time on Wednesday, February 27, 2013.
United States: (800) 230-1093
International: (612) 288-0329
The conference call will be simultaneously webcast through the Company's website at www.stillwatermining.com in the Investor Relations section.
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