-- Strong First Quarter Performance with Adjusted EBITDA Almost Double Q4 2021 --
-- Significantly Raises Full Year Guidance with 2022 Adjusted EBITDA Almost 5x 2021 --
-- Announces Multiple Additional Carbonate and Hydroxide Capacity Expansions --
-- Provides Details on Agreement to Double Ownership Stake in
Revenue was
"Strong lithium demand growth has continued in 2022," said
Capacity Expansion Update
Lithium Carbonate
In its first expansion in
The Company also announced last quarter that it began engineering work on a second capacity expansion in Argentina. Following completion of a preliminary analysis, this expansion is now expected to add an additional 30,000 metric tons of lithium carbonate capacity by the end of 2025, or 10,000 metric tons more than previously announced. By re-engineering the use of fresh water, the second expansion will not require access to any additional fresh water. It also allows
Lithium Hydroxide
The Company announces that it expects to add another 15,000 metric tons of lithium hydroxide capacity at a new location in
Following these expansions,
Yesterday,
Guidance and Outlook (2)
($ million) |
Revised FY 2022 Guidance |
Prior FY 2022 Guidance |
Actual FY 2021 |
Revised YoY Growth (midpoint) |
Revenue |
755 – 835 |
540 – 600 |
420 |
Up 89% |
Adj. EBITDA |
290 – 350 |
160 – 200 |
70 |
Up 360% |
Supplemental Information
In this press release,
About
For nearly eight decades,
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, you can identify these statements by forward-looking words such as "may," "might," "will," "will continue to," "will likely result," "is on track," "should," "expect," "expects," "intends," "plans," "anticipates," "believe," "believes," "estimates," "predicts," "potential," "continue," "could," "forecast," "future," "is confident that," "plans," or "projects," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about
- Lithium Carbonate Equivalents.
- Although we provide a forecast for Adjusted EBITDA, we are not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP. Certain elements of the composition of the GAAP amount are not predictable, making it impractical for us to forecast such GAAP measure or to reconcile corresponding non-GAAP financial measure to such GAAP measure without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring, transaction related charges, and related cash activity. As a result, no GAAP outlook is provided for these metrics.
LIVENT CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Unaudited, in millions, except per share data) |
||||
|
||||
|
|
Three Months Ended |
||
|
|
2022 |
|
2021 |
Revenue |
|
$ 143.5 |
|
$ 91.7 |
Costs of sales |
|
83.6 |
|
78.4 |
Gross margin |
|
59.9 |
|
13.3 |
Selling, general and administrative expenses |
|
11.8 |
|
10.7 |
Research and development expenses |
|
0.9 |
|
0.7 |
Restructuring and other charges |
|
1.0 |
|
0.3 |
Separation-related costs/(income) |
|
0.1 |
|
(0.1) |
Total costs and expenses |
|
97.4 |
|
90.0 |
Income from operations before equity in net loss of unconsolidated affiliate, |
|
46.1 |
|
1.7 |
Equity in net loss of unconsolidated affiliate |
|
2.2 |
|
1.3 |
Interest expense, net |
|
— |
|
0.3 |
Other gain |
|
(14.0) |
|
— |
Income from operations before income taxes |
|
57.9 |
|
0.1 |
Income tax expense |
|
4.7 |
|
0.9 |
Net income/(loss) |
|
$ 53.2 |
|
$ (0.8) |
Net income/(loss) per weighted average share - basic |
|
$ 0.33 |
|
$ (0.01) |
Net income/(loss) per weighted average share - diluted |
|
$ 0.28 |
|
$ (0.01) |
Weighted average common shares outstanding - basic |
|
161.7 |
|
146.5 |
Weighted average common shares outstanding - diluted |
|
191.4 |
|
146.5 |
LIVENT CORPORATION |
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
||||
|
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RECONCILIATION OF NET INCOME/(LOSS) (GAAP) TO ADJUSTED EBITDA (NON-GAAP) |
||||
(Unaudited) |
||||
|
||||
|
|
Three Months Ended |
||
(in Millions) |
|
2022 |
|
2021 |
Net income/(loss) |
|
$ 53.2 |
|
$ (0.8) |
Add back: |
|
|
|
|
Interest expense, net |
|
— |
|
0.3 |
Income tax expense |
|
4.7 |
|
0.9 |
Depreciation and amortization |
|
6.4 |
|
6.2 |
EBITDA (Non-GAAP) (1) |
|
64.3 |
|
6.6 |
Add back: |
|
|
|
|
|
|
1.0 |
|
2.3 |
Restructuring and other charges (b) |
|
1.0 |
|
0.3 |
Separation-related costs/(income) (c) |
|
0.1 |
|
(0.1) |
COVID-19 related costs (d) |
|
0.8 |
|
0.9 |
Other loss (e) |
|
1.6 |
|
1.1 |
Subtract: |
|
|
|
|
Blue |
|
(14.0) |
|
— |
|
|
(1.5) |
|
— |
Adjusted EBITDA (Non-GAAP) (1) |
|
$ 53.3 |
|
$ 11.1 |
__________________ |
|
1. |
We evaluate operating performance using certain Non-GAAP measures such as EBITDA, which we define as net income/(loss) plus interest expense, net, income tax expense and depreciation and amortization; and Adjusted EBITDA, which we define as EBITDA adjusted for restructuring and other charges, separation-related costs/(income) and certain other losses/(gains). Management believes the use of these Non-GAAP measures allows management and investors to compare more easily the financial performance of its underlying business from period to period. The Non-GAAP information provided may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating EBITDA and Adjusted EBITDA. This measure should not be considered as a substitute for net income/(loss) or other measures of performance or liquidity reported in accordance with |
|
|
a. |
Represents impact of currency fluctuations on tax assets and liabilities and long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement losses are included within "Cost of sales" in our condensed 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. Three 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 condensed 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. |
Three months ended |
|
|
f. |
Represents the gain from the sale in |
|
|
g. |
Represents interest income received from the |
RECONCILIATION OF NET INCOME/(LOSS) (GAAP) TO |
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ADJUSTED AFTER-TAX EARNINGS (NON-GAAP) |
||||
(Unaudited) |
||||
|
||||
(in Millions, Except Per Share Data) |
|
Three Months Ended |
||
|
2022 |
|
2021 |
|
Net income/(loss) |
|
$ 53.2 |
|
$ (0.8) |
Special charges: |
|
|
|
|
Argentina remeasurement losses (a) |
|
1.0 |
|
2.3 |
Restructuring and other charges (b) |
|
1.0 |
|
0.3 |
Separation-related costs/(income) (c) |
|
0.1 |
|
(0.1) |
COVID-19 related costs (d) |
|
0.8 |
|
0.9 |
Other loss (e) |
|
1.6 |
|
1.1 |
Blue |
|
(14.0) |
|
— |
Argentina interest income (g) |
|
(1.5) |
|
— |
Non-GAAP tax adjustments (i) |
|
(2.2) |
|
(0.3) |
Adjustment for interest, net of tax, on 2025 Notes assumed converted (Non-GAAP) (h) |
|
— |
|
0.2 |
Adjusted after-tax earnings (Non-GAAP) (1) |
|
$ 40.0 |
|
$ 3.6 |
|
|
|
|
|
Diluted earnings/(loss) per common share (GAAP) |
|
$ 0.28 |
|
$ (0.01) |
Special charges per diluted share, before tax: |
|
|
|
|
Argentina remeasurement losses, per diluted share |
|
0.01 |
|
0.01 |
Restructuring and other charges, per diluted share |
|
0.01 |
|
— |
COVID-19 related costs, per diluted share |
|
— |
|
0.01 |
Other loss, per diluted share |
|
0.01 |
|
0.01 |
Blue |
|
(0.08) |
|
— |
Argentina interest income, per diluted share |
|
(0.01) |
|
— |
Non-GAAP tax adjustments, per diluted share |
|
(0.01) |
|
— |
Diluted adjusted after-tax earnings per share (Non-GAAP) (1) |
|
$ 0.21 |
|
$ 0.02 |
Weighted average common shares outstanding - diluted (Non-GAAP) used in diluted |
|
191.4 |
|
176.0 |
___________________ |
|
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 special charges 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 impact of currency fluctuations on tax assets and liabilities and long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement losses are included within "Cost of sales" in our condensed 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. Three 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 condensed 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. |
Three months ended |
|
|
f. |
Represents the gain from the sale in |
|
|
g. |
Represents interest income received from the |
|
|
h. |
For the three months ended |
|
|
i. |
The Company excludes the GAAP tax provision, including discrete items, from the Non-GAAP measure of income, and instead includes a Non-GAAP tax provision based upon the projected 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 interim 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 |
||
(in Millions) |
|
2022 |
|
2021 |
Non-GAAP tax adjustments: |
|
|
|
|
Income tax expense/(benefit) on restructuring, separation-related and other corporate costs |
|
$ 0.1 |
|
$ (0.5) |
Foreign currency remeasurement and other discrete items |
|
(3.9) |
|
(1.1) |
Blue |
|
1.4 |
|
— |
Other discrete items |
|
0.2 |
|
1.3 |
Total Non-GAAP tax adjustments |
|
$ (2.2) |
|
$ (0.3) |
RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) TO |
|||
ADJUSTED CASH PROVIDED BY OPERATIONS (NON-GAAP) |
|||
(Unaudited) |
|||
|
|||
|
Three Months Ended |
||
(in Millions) |
2022 |
|
2021 |
Cash provided by operating activities (GAAP) |
$ 10.8 |
|
$ 12.7 |
Restructuring and other charges |
0.2 |
|
0.2 |
Separation-related costs/(income) |
0.4 |
|
(0.7) |
COVID-19 related costs (a) |
0.8 |
|
0.9 |
Adjusted cash provided by operations (Non-GAAP) (1) |
$ 12.2 |
|
$ 13.1 |
___________________ |
|
1. |
The Company believes that the Non-GAAP financial measure "Adjusted cash provided by operations" provides useful information about the Company's cash flows to investors and securities analysts. Adjusted cash provided by 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 condensed 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. |
RECONCILIATION OF LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP) TO |
|||
NET DEBT (NON-GAAP) |
|||
(Unaudited) |
|||
|
|||
(in Millions) |
|
|
|
Long-term debt (GAAP) (a) |
$ 240.8 |
|
$ 240.4 |
Less: Cash and cash equivalents (GAAP) |
(68.5) |
|
(113.0) |
Net debt (Non-GAAP) (1) |
$ 172.3 |
|
$ 127.4 |
___________________ |
|
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. |
As of |
LIVENT CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
|||
(Unaudited) |
|||
|
|||
(in Millions) |
|
|
|
Cash and cash equivalents |
$ 68.5 |
|
$ 113.0 |
Trade receivables, net of allowance of approximately |
105.5 |
|
96.4 |
Inventories |
150.5 |
|
134.6 |
Other current assets |
40.0 |
|
55.3 |
Total current assets |
364.5 |
|
399.3 |
Investments |
33.4 |
|
27.2 |
Property, plant and equipment, net of accumulated depreciation of |
737.8 |
|
677.9 |
Right of use assets - operating leases, net |
6.0 |
|
6.3 |
Deferred income taxes |
— |
|
0.9 |
Other assets |
100.9 |
|
90.9 |
Total assets |
$ 1,242.6 |
|
$ 1,202.5 |
|
|
|
|
Accounts payable, trade and other |
$ 62.2 |
|
$ 65.4 |
Other current liabilities |
55.3 |
|
62.9 |
Income taxes |
2.8 |
|
3.0 |
Total current liabilities |
120.3 |
|
131.3 |
Long-term debt |
240.8 |
|
240.4 |
Operating lease liabilities - long-term |
5.0 |
|
5.4 |
Long-term liabilities |
27.5 |
|
30.0 |
Equity |
849.0 |
|
795.4 |
Total liabilities and equity |
$ 1,242.6 |
|
$ 1,202.5 |
LIVENT CORPORATION |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
(Unaudited) |
|||
|
|||
|
Three Months Ended |
||
(in Millions) |
2022 |
|
2021 |
Cash provided by operating activities |
$ 10.8 |
|
$ 12.7 |
Cash used in investing activities |
(55.4) |
|
(27.0) |
Cash provided by financing activities |
0.1 |
|
24.2 |
(Decrease)/increase in cash and cash equivalents |
(44.5) |
|
9.9 |
Cash and cash equivalents, beginning of period |
113.0 |
|
11.6 |
Cash and cash equivalents, end of period |
$ 68.5 |
|
$ 21.5 |
Media Contact:
Juan.Carlos.Cruz@livent.com
Investor Contact:
Daniel.Rosen@livent.com
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