Arcadium Lithium Releases Fourth Quarter and Full Year 2023 Results and Provides 2024 Full Year Outlook
- Merger Between Allkem and Livent Completed on
January 4, 2024 -
Arcadium Lithium 2024 Outlook Highlighted by a 40% Increase in Lithium Carbonate and Hydroxide Volumes as a Combined Company - Projecting
$60 to 80 million of Realized Synergies / Cost Savings in 2024 - Slowing Pace of Expansion in Light of Current Market Conditions and to Optimize Capital Efficiencies Between Co-Located Projects
Arcadium Lithium plc (NYSE: ALTM, ASX: LTM, "Arcadium Lithium") today reported results for the fourth quarter and full year of 2023 for Livent Corporation ("Livent") and provided select results for Allkem Limited ("Allkem"). The 2023 Form 10-K to be released by Arcadium Lithium will only include the historical results of Livent's operations since the merger closed after
Full calendar year 2023 revenue for the combined company on a pro forma basis was
"We are excited to officially begin operating as Arcadium Lithium, leveraging the strengths of two highly complementary organizations and continuing to grow as one of the leading producers of lithium chemicals globally," said
Livent Corporation Results
Livent achieved the following results for the fourth quarter and full year of 2023:
Metric |
Units |
2023 |
2022 |
YoY % |
Q4 23 |
Revenue |
$M |
883 |
813 |
9 % |
182 |
GAAP Net Income |
$M |
330 |
274 |
21 % |
38 |
Adj. EBITDA1 |
$M |
503 |
367 |
37 % |
91 |
GAAP EPS |
$/share |
1.58 |
1.36 |
16 % |
0.18 |
Adjusted EPS1 |
$/share |
1.89 |
1.40 |
35 % |
0.34 |
|
|
|
|
|
|
Adj. cash from operations1,2 |
$M |
326 |
262 |
24 % |
52 |
Capital spending3 |
$M |
329 |
327 |
— % |
90 |
1. Denotes non-GAAP financial term.
2. Excludes customer advanced payment of 3. Capital expenditures and other investing activities; excludes capitalized interest.
|
For the fourth quarter, volumes sold were broadly flat with lower average realized prices across all lithium products versus the third quarter and slightly higher costs. Despite a challenging lithium market environment in the fourth quarter, Livent achieved record results across all key financial metrics in 2023, reflecting higher average realized pricing and lower overall costs. Full year 2023 net income increased 21%, adjusted EBITDA was up 37% and adjusted EBITDA margins expanded by over 10% compared to 2022.
Allkem Limited Results1
Olaroz Lithium Facility 2
Lithium Carbonate |
|
|
|
||
Metric |
Units |
CY-23 |
Dec Q-23 |
Sep Q-23 |
QoQ % |
Total Revenue |
US$M |
511 |
96 |
123 |
(22) % |
Production |
metric tons |
17,758 |
4,144 |
4,453 |
(7) % |
Sales |
metric tons |
17,879 |
6,991 |
4,554 |
54 % |
Average price received1 |
US$/mt |
27,788 |
13,564 |
25,981 |
(48) % |
|
|
1. |
Excludes lithium carbonate by-product revenue of |
- Quarterly production of 4,144 metric tons of lithium carbonate with approximately 43% of quarterly production as battery grade lithium carbonate
- Quarterly sales of 6,991 metric tons of which 31% was battery grade lithium carbonate with average realized price of
US$13,564 /metric ton FOB3
Mt Cattlin
Spodumene concentrate |
|
|
Ravensthorpe, |
||
Metric 1 |
Units |
CY-23 |
Dec Q-23 |
Sep Q-23 |
QoQ % |
Spodumene Revenue |
US$M |
571 |
46 |
201 |
(77) % |
Realized price |
US$/dmt CIF |
2,785 |
763 |
2,625 |
(71) % |
Recovery |
% |
68 |
72 |
68 |
6 % |
Concentrate produced |
dmt |
239,312 |
69,789 |
72,549 |
(4) % |
Grade of concentrate produced |
% Li2O |
5.3 |
5.4 |
5.3 |
2 % |
Concentrate shipped |
dmt |
204,979 |
60,008 |
76,631 |
(22) % |
Grade of concentrate shipped |
% Li2O |
5.3 |
5.3 |
5.3 |
— % |
|
|
1. |
Table includes metrics for spodumene only and does not reflect production, sales or revenue figures for low-grade material (which is sold irregularly) or immaterial amounts of other products. Sales of these excluded products totaled |
- Quarterly production of 69,789 metric tons of spodumene concentrate at 5.4% Li2O grade
- Strong recovery of 72% demonstrates favorable grade and mineralization as mining continues in the main part of the orebody
- Spodumene concentrate sales of 60,008 metric tons at an SC6 equivalent price of
US$850 /dmt for the quarter. Realized pricing during the quarter was impacted by a shift to forward looking reference price mechanisms and the timing of shipments all occurring in the second half of the quarter
Merger Completion
The all-stock merger of equals between Allkem and Livent was completed on
Synergies / Cost Savings
Arcadium Lithium is expecting to realize synergy and cost savings totaling
Expansions
Arcadium Lithium expects to increase combined lithium carbonate and lithium hydroxide volumes delivered to customers by roughly 40% in 2024 to 50,000 to 54,000 metric tons on a LCE basis4. This is a result of lithium carbonate expansion ramp-ups at both Olaroz and Fénix (Salar del Hombre Muerto), as well as at downstream hydroxide assets globally. Offsetting some of this higher volume in 2024 is a reduction in planned spodumene production at Mt. Cattlin as part of cost optimization efforts at the mine, reflecting the lower price environment.
Arcadium Lithium is growing volumes significantly during 2024 as a result of previous multi-year expansionary investments. However, in light of current market conditions the Company expects to lower near-term capital spending commitments as it evaluates ways to streamline its project pipeline while still delivering additional volumes within the timeframes needed by customers.
"One of the many benefits of the merger is the opportunity to both optimize and de-risk our growth projects that have natural overlaps. By slowing capital spending in 2024 we are able to accelerate the work needed to drive capital efficiencies in both
Arcadium Lithium expects
As of
2024 Outlook Scenarios 6
The outlook scenarios for the full year 2024 as set out below are provided by Arcadium Lithium as a combined company. The Company is expecting higher overall volumes, with a 40% increase in combined lithium hydroxide and lithium carbonate sales partially offset by lower spodumene concentrate sales.
The majority of Arcadium Lithium's hydroxide volumes are currently sold under multi-year agreements with established pricing terms (pre-agreed price or subject to floors and ceilings). The Company's other lithium specialties (butyllithium, high purity lithium metal, etc.) are typically sold on a customer-by-customer, negotiated price basis with monthly or quarterly price resets. Lithium carbonate and spodumene concentrate volumes are currently sold largely at prevailing market prices set on a monthly basis.
The table below reflects Revenue and Adjusted EBITDA outcomes for Arcadium Lithium based on two different lithium market price scenarios. These scenarios should not be interpreted as a forecast by Arcadium Lithium as to the likely range of 2024 lithium prices. It keeps constant the midpoints of the Company's expected sales volumes, synergy/cost savings and SG&A for 2024 while overlaying the pricing mechanisms of existing commercial agreements:
|
|
|
Average Lithium Market Price (LCE Basis) |
||
Metric |
Units |
|
|
|
|
Revenue |
$ million |
|
~1,250 |
|
~1,900 |
Adjusted EBITDA1 |
$ million |
|
~420 |
|
~1,000 |
Adjusted EBITDA Margin1 |
|
34 % |
|
53 % |
|
|
1. |
Although Arcadium Lithium provides an outlook for Adjusted EBITDA and Adjusted tax rate, the Company is not able to do so for the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for the Company to provide an outlook for such GAAP measures or to reconcile corresponding non-GAAP financial measures to such GAAP measures without unreasonable efforts. For the same reason, the Company is unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring and transaction related charges. As a result, no GAAP equivalent outlook is provided for these metrics. |
The table below provides an outlook for other select financial items:
Metric |
Units |
Full Year 2024 |
|
Selling, general and administrative expenses1 |
$ million |
~115 |
|
Depreciation & amortization |
$ million |
~145 |
|
Adjusted tax rate2 |
|
25 % |
33 % |
Full-year weighted average diluted shares outstanding3 |
million |
~1,150 |
|
|
|
|
|
Capital spending |
$ million |
550 |
750 |
|
|
1. |
|
2. |
Although Arcadium Lithium provides an outlook for Adjusted EBITDA and Adjusted tax rate, the Company is not able to do so for the most directly comparable measures calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for the Company to provide an outlook for such GAAP measures or to reconcile corresponding non-GAAP financial measures to such GAAP measures without unreasonable efforts. For the same reason, the Company is unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring and transaction related charges. As a result, no GAAP equivalent outlook is provided for these metrics. |
3. |
Inclusive of 67.7 million dilutive share equivalents attributable to potential conversion of 2025 Notes. |
Arcadium Lithium Contacts
Investors:
daniel.rosen@livent.com
phoebe.lee@allkem.co
Media:
karen.vizental@allkem.co
Address:
Suite 12, Gateway Hub
Shannon Airport House
Shannon,
Supplemental Information
In this press release, Arcadium Lithium uses the financial measures Adjusted EBITDA, Diluted adjusted after-tax earnings per share, Adjusted tax rate, and Adjusted cash from operations. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.arcadiumlithium.com. Such reconciliations are also set forth in the financial tables that accompany this press release.
About Arcadium Lithium
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in
Important Information and Legal Disclaimer:
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, we have identified forward-looking statements by such words or phrases as "will likely result," "is confident that," "expect," "expects," "should," "could," "may," "will continue to," "believe," "believes," "anticipates," "predicts," "forecasts," "estimates," "projects," "potential," "intends" or similar expressions identifying "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including the negative of those words and phrases. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including the factors described under the caption entitled "Risk Factors" in Livent Corporation's 2022 Form 10-K filed with the
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited, in millions, except per share data) |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
December 31, |
|
December 31, |
||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Revenue |
$ 181.8 |
|
$ 219.4 |
|
$ 882.5 |
|
$ 813.2 |
Costs of sales |
138.4 |
|
105.5 |
|
413.2 |
|
417.5 |
Gross margin |
43.4 |
|
113.9 |
|
469.3 |
|
395.7 |
Selling, general and administrative expenses |
16.1 |
|
14.6 |
|
63.2 |
|
55.2 |
Research and development expenses |
2.5 |
|
1.3 |
|
5.8 |
|
3.9 |
Restructuring and other charges |
22.0 |
|
2.9 |
|
56.7 |
|
7.5 |
Separation-related costs |
— |
|
0.2 |
|
— |
|
0.7 |
Total costs and expenses |
179.0 |
|
124.5 |
|
538.9 |
|
484.8 |
Income from operations before equity in net loss of unconsolidated |
2.8 |
|
94.9 |
|
343.6 |
|
328.4 |
Equity in net loss of unconsolidated affiliate |
1.1 |
|
6.7 |
|
23.1 |
|
15.1 |
Loss on debt extinguishment |
— |
|
— |
|
— |
|
0.1 |
Other gain |
(47.1) |
|
— |
|
(68.5) |
|
(22.2) |
Income from operations before income taxes |
48.8 |
|
88.2 |
|
389.0 |
|
335.4 |
Income tax expense |
11.1 |
|
5.5 |
|
58.9 |
|
61.9 |
Net income |
$ 37.7 |
|
$ 82.7 |
|
$ 330.1 |
|
$ 273.5 |
Net income per weighted average share - basic |
$ 0.21 |
|
$ 0.46 |
|
$ 1.84 |
|
$ 1.59 |
Net income per weighted average share - diluted |
$ 0.18 |
|
$ 0.39 |
|
$ 1.58 |
|
$ 1.36 |
Weighted average common shares outstanding - basic |
179.8 |
|
179.5 |
|
179.7 |
|
171.8 |
Weighted average common shares outstanding - diluted |
209.0 |
|
209.4 |
|
209.2 |
|
201.6 |
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|||||||
|
|||||||
RECONCILIATION OF NET INCOME TO EBITDA (NON-GAAP) AND ADJUSTED EBITDA (NON-GAAP) (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
December 31, |
|
December 31, |
||||
(In Millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ 37.7 |
|
$ 82.7 |
|
$ 330.1 |
|
$ 273.5 |
Add back: |
|
|
|
|
|
|
|
Income tax expense |
11.1 |
|
5.5 |
|
58.9 |
|
61.9 |
Depreciation and amortization |
8.1 |
|
8.3 |
|
29.6 |
|
27.7 |
EBITDA (Non-GAAP) (1) |
56.9 |
|
96.5 |
|
418.6 |
|
363.1 |
Add back: |
|
|
|
|
|
|
|
|
53.4 |
|
3.7 |
|
73.9 |
|
6.7 |
Restructuring and other charges (b) |
22.0 |
|
2.9 |
|
56.7 |
|
7.5 |
Separation-related costs (c) |
— |
|
0.2 |
|
— |
|
0.7 |
COVID-19 related costs (d) |
— |
|
0.3 |
|
— |
|
2.4 |
Loss on debt extinguishment (e) |
— |
|
— |
|
— |
|
0.1 |
Other loss (f) |
0.8 |
|
4.0 |
|
16.9 |
|
9.9 |
Subtract: |
|
|
|
|
|
|
|
Blue |
(42.2) |
|
— |
|
(63.6) |
|
(22.2) |
|
— |
|
— |
|
— |
|
(1.5) |
Adjusted EBITDA (Non-GAAP) (1) |
$ 90.9 |
|
$ 107.6 |
|
$ 502.5 |
|
$ 366.7 |
___________________
1. |
We evaluate operating performance using certain Non-GAAP measures such as EBITDA, which we define as net income plus interest expense, net, income tax (benefit)/expense, depreciation, and amortization, and Adjusted EBITDA, which we define as EBITDA adjusted for |
a. |
Represents impact of currency fluctuations on tax assets and liabilities and on long-term monetary assets associated with our capital expansion, as well as significant currency devaluations. The remeasurement losses are included within "Cost of sales" in our consolidated statement of operations but are excluded from our calculation of Adjusted EBITDA because of: i.) their nature as income tax related; ii.) their association with long-term capital projects which will not be operational until future periods; or iii.) the severity of the devaluations and their immediate impact on our operations in the country. |
b. |
We continually perform strategic reviews and assess the return on our business. This sometimes results in management changes or in a plan to restructure the operations of our business. As part of these restructuring plans, demolition costs and write-downs of long-lived assets may occur. The three and twelve months ended |
c. |
Represents legal and professional fees and other separation-related activity. |
d. |
Represents incremental costs associated with COVID-19 recorded in "Cost of sales" in the consolidated statements of operations, including but not limited to, incremental quarantine related absenteeism, incremental facility cleaning costs, COVID-19 testing, pandemic related supplies and personal protective equipment for employees, among other costs; offset by economic relief provided by foreign governments. |
e. |
Represents the partial write off of deferred financing costs for the amendments to our Revolving Credit Facility excluded from our calculation of Adjusted EBITDA because the loss is nonrecurring. |
f. |
Prior to consolidation of Nemaska Lithium Inc. ("NLI") on |
g. |
Represents gains from the sale in |
h. |
Represents interest income received from the |
RECONCILIATION OF NET INCOME TO ADJUSTED AFTER-TAX EARNINGS (NON-GAAP) (Unaudited) |
|||||||
|
|||||||
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
December 31, |
|
December 31, |
||||
(In Millions, except per share amounts) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Net income |
$ 37.7 |
|
$ 82.7 |
|
$ 330.1 |
|
$ 273.5 |
Special charges: |
|
|
|
|
|
|
|
|
53.4 |
|
3.7 |
|
73.9 |
|
6.7 |
Restructuring and other charges (b) |
22.0 |
|
2.9 |
|
56.7 |
|
7.5 |
Separation-related costs(c) |
— |
|
0.2 |
|
— |
|
0.7 |
COVID-19 related costs (d) |
— |
|
0.3 |
|
— |
|
2.4 |
Loss on debt extinguishment (e) |
— |
|
— |
|
— |
|
0.1 |
Other loss (f) |
0.8 |
|
4.0 |
|
16.9 |
|
9.9 |
Blue |
(42.2) |
|
— |
|
(63.6) |
|
(22.2) |
|
— |
|
— |
|
— |
|
(1.5) |
Non-GAAP tax adjustments (i) |
(0.9) |
|
(9.6) |
|
(18.0) |
|
5.5 |
Adjusted after-tax earnings (Non-GAAP) (1) |
$ 70.8 |
|
$ 84.2 |
|
$ 396.0 |
|
$ 282.6 |
|
|
|
|
|
|
|
|
Diluted earnings per common share |
$ 0.18 |
|
$ 0.39 |
|
$ 1.58 |
|
$ 1.36 |
Special charges per diluted share, before tax: |
|
|
|
|
|
|
|
|
0.26 |
|
0.02 |
|
0.35 |
|
0.03 |
Restructuring and other charges, per diluted share |
0.11 |
|
0.02 |
|
0.27 |
|
0.04 |
COVID-19 related costs, per diluted share |
— |
|
— |
|
— |
|
0.01 |
Other loss, per diluted share |
— |
|
0.02 |
|
0.08 |
|
0.05 |
Blue |
(0.20) |
|
— |
|
(0.30) |
|
(0.11) |
|
— |
|
— |
|
— |
|
(0.01) |
Non-GAAP tax adjustments per diluted share |
(0.01) |
|
(0.05) |
|
(0.09) |
|
0.03 |
Diluted adjusted after-tax earnings per share (Non-GAAP) (1) |
$ 0.34 |
|
$ 0.40 |
|
$ 1.89 |
|
$ 1.40 |
Weighted average number of shares outstanding used in diluted adjusted |
209.0 |
|
209.4 |
|
209.2 |
|
201.6 |
____________________
1. |
The company believes that the Non-GAAP financial measures "Adjusted after-tax earnings" and "Diluted adjusted after-tax earnings per share" provide useful information about the company's operating results to management, investors and securities analysts. Adjusted after-tax earnings excludes the effects of nonrecurring charges/(income) and tax-related adjustments. The company also believes that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of its underlying business from period to period. Diluted adjusted after-tax earnings per share (Non-GAAP) is calculated using weighted average common shares outstanding - diluted. |
a. |
Represents charges related to currency fluctuations on tax assets and liabilities and on long-term monetary assets associated with our capital expansion, as well as significant currency devaluations. The remeasurement losses are included within "Cost of sales" in our consolidated statement of operations but are excluded from our calculation of Adjusted EBITDA because of: i.) their nature as income tax related; ii.) their association with long-term capital projects which will not be operational until future periods; or iii.) the severity of the devaluations and their immediate impact on our operations in the country. |
b. |
We continually perform strategic reviews and assess the return on our business. This sometimes results in management changes or in a plan to restructure the operations of our business. As part of these restructuring plans, demolition costs and write-downs of long-lived assets may occur. The three and twelve months ended |
c. |
Represents legal and professional fees and other separation-related activity. |
d. |
Represents incremental costs associated with COVID-19 recorded in "Cost of sales" in the consolidated statement of operations, including but not limited to, incremental quarantine related absenteeism, incremental facility cleaning costs, COVID-19 testing, pandemic related supplies and personal protective equipment for employees, among other costs; offset by economic relief provided by foreign governments. |
e. |
Represents the partial write off of deferred financing costs for the amendments to our Revolving Credit Facility excluded from our calculation of Adjusted EBITDA because the loss is nonrecurring. |
f. |
Prior to consolidation of NLI on |
g. |
Represents gains from the sale in |
h. |
Represents interest income received from the |
i. |
The company excludes the GAAP tax provision, including discrete items, from the Non-GAAP measure "Diluted adjusted after-tax earnings per share", and instead includes a Non-GAAP tax provision based upon the annual Non-GAAP effective tax rate. The GAAP tax provision includes certain discrete tax items including, but not limited to: income tax expenses or benefits that are not related to operating results in the current year; tax adjustments associated with fluctuations in foreign currency remeasurement of certain foreign operations; certain changes in estimates of tax matters related to prior fiscal years; certain changes in the realizability of deferred tax assets and related accounting impacts; and changes in tax law. Management believes excluding these discrete tax items assists investors and securities analysts in understanding the tax provision and the effective tax rate related to operating results thereby providing investors with useful supplemental information about the company's operational performance. The income tax expense/(benefit) on special charges/(income) is determined using the applicable rates in the taxing jurisdictions in which the special charge or income occurred and includes both current and deferred income tax expense/(benefit) based on the nature of the Non-GAAP performance measure. |
|
Three Months Ended |
|
Twelve Months Ended |
||||
|
|
|
|
||||
(in Millions) |
2023 |
|
2022 |
|
2023 |
|
2022 |
Non-GAAP tax adjustments: |
|
|
|
|
|
|
|
Income tax benefit on restructuring, separation-related and other corporate costs |
$ (3.4) |
|
$ (0.7) |
|
$ (7.0) |
|
$ (2.0) |
Revisions to our tax liabilities due to finalization of prior year tax returns |
— |
|
— |
|
(0.4) |
|
— |
Foreign currency remeasurement (net of valuation allowance) and other discrete items |
(1.1) |
|
(7.1) |
|
(16.2) |
|
7.6 |
Blue |
4.5 |
|
— |
|
6.7 |
|
2.3 |
Other discrete items |
(0.9) |
|
(1.8) |
|
(1.1) |
|
(2.4) |
Total Non-GAAP tax adjustments |
$ (0.9) |
|
$ (9.6) |
|
$ (18.0) |
|
$ 5.5 |
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED CASH FROM OPERATIONS (NON-GAAP) (Unaudited) |
|||
|
|||
|
Twelve Months Ended |
||
|
December 31, |
||
(In Millions) |
2023 |
|
2022 |
Cash provided by operating activities |
$ 297.3 |
|
$ 454.7 |
Restructuring and other charges |
28.7 |
|
3.5 |
Separation-related costs |
— |
|
0.9 |
COVID-19 related costs (a) |
— |
|
2.4 |
|
— |
|
(1.5) |
Adjusted cash from operations (Non-GAAP) (1) |
$ 326.0 |
|
$ 460.0 |
___________________
1. |
The company believes that the Non-GAAP financial measure "Adjusted cash from operations" provides useful information about the company's cash flows to investors and securities analysts. Adjusted cash from operations excludes the effects of transaction-related cash flows. The company also believes that excluding the effects of these items from cash provided by operating activities allows management and investors to compare more easily the cash flows from period to period. |
a. |
Represents incremental costs associated with COVID-19 recorded in "Cost of sales" in the consolidated statement of operations, including but not limited to, incremental quarantine related absenteeism, incremental facility cleaning costs, COVID-19 testing, pandemic related supplies and personal protective equipment for employees, among other costs; offset by economic relief provided by foreign governments. |
b. |
Represents interest income received from the |
RECONCILIATION OF LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP) TO NET DEBT (NON-GAAP) (Unaudited)
|
|||
|
|||
(In Millions) |
|
|
|
Long-term debt (including current maturities) (GAAP) (a) |
$ 302.0 |
|
$ 241.9 |
Less: Cash and cash equivalents (GAAP) |
(237.6) |
|
(189.0) |
Net debt (Non-GAAP) (1) |
$ 64.4 |
|
$ 52.9 |
___________________
1. |
The company believes that the non-GAAP financial measure "Net debt" provides useful information about the company's cash flows and liquidity to investors and securities analysts. |
a. |
Presented net of unamortized transaction costs of |
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
|||
|
|||
(In Millions) |
|
|
|
Cash and cash equivalents |
$ 237.6 |
|
$ 189.0 |
Trade receivables, net of allowance of approximately |
106.7 |
|
141.6 |
Inventories |
217.5 |
|
152.3 |
Other current assets |
86.4 |
|
61.1 |
Total current assets |
648.2 |
|
544.0 |
Investments |
34.8 |
|
440.3 |
Property, plant and equipment, net of accumulated depreciation of |
2,237.1 |
|
968.3 |
Right of use assets - operating leases, net |
6.8 |
|
4.8 |
|
120.7 |
|
— |
Other intangibles, net |
53.4 |
|
— |
Deferred income taxes |
1.4 |
|
0.4 |
Other assets |
127.7 |
|
116.4 |
Total assets |
$ 3,230.1 |
|
$ 2,074.2 |
|
|
|
|
Total current liabilities |
268.6 |
|
148.7 |
Long-term debt |
299.6 |
|
241.9 |
Contract liabilities - long term |
217.8 |
|
198.0 |
Other long-term liabilities |
160.3 |
|
42.6 |
Equity |
2,283.8 |
|
1,443.0 |
Total liabilities and equity |
$ 3,230.1 |
|
$ 2,074.2 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) |
|||
|
|||
|
Twelve Months Ended |
||
(In Millions) |
2023 |
|
2022 |
Cash provided by operating activities |
$ 297.3 |
|
$ 454.7 |
Cash used in investing activities |
(228.3) |
|
(364.7) |
Cash used in financing activities |
(20.4) |
|
(12.5) |
Effect of exchange rate changes on cash |
— |
|
(1.5) |
Increase in cash and cash equivalents |
48.6 |
|
76.0 |
Cash and cash equivalents, beginning of period |
189.0 |
|
113.0 |
Cash and cash equivalents, end of period |
$ 237.6 |
|
$ 189.0 |
1 |
Allkem's select results include property-level financial measures reported according to International Financial Reporting Standards (IFRS) as issued by the |
2 |
All figures on a 100% |
3 |
"FOB" (Free On Board) excludes insurance and freight charges included in "CIF" (Cost, Insurance, Freight) pricing. Therefore, the Company's FOB reported prices are net of freight (shipping), insurance and sales commission. |
4 |
Lithium Carbonate Equivalents. Includes 100% of Olaroz, in which Arcadium Lithium has a 66.5% economic interest. |
5 |
Cash and debt of the combined company shown on an unaudited basis. Includes |
6 |
Reflects 100% consolidation of Olaroz and Nemaska Lithium, in which Arcadium Lithium has current economic interest of 66.5% and 50%, respectively. |
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