Li-Cycle Reports Full Year 2023 Results
Highlights
-
Reported full-year 2023 results in accordance with
U.S. GAAP, transitioning from IFRS;
- Produced 6,825 tonnes of black mass and equivalents in 2023, 1.5x 2022 production level and exceeding the top end of annual guidance of 5,500 to 6,500 tonnes provided in November;
-
Posted total revenue of
$18.3 million in 2023, a 11% increase over 2022; excluding non-cash fair value pricing adjustments, posted$23.6 million of product and recycling revenue in 2023, a 34% increase over 2022;
-
Announced
$75.0 million strategic investment from Glencore; expected closing on or aboutMarch 25, 2024 ;
-
Continuing to work closely with the
U.S. Department of Energy on the conditional commitment for a loan of up to$375.0 million ; and
-
Hosting a conference call and webcast on
Tuesday, March 19, 2024 at8:15 a.m. Eastern Time to provide a business update including a review of financial results.
Webcast and Conference Call Information
On
Investors may listen to the conference call live via audio-only webcast or through the following dial-in numbers:
Domestic: (800) 579-2543
International: (203) 518-9814
Participant Code: LICYQ423
Webcast: https://investors.li-cycle.com
A replay of the conference call/webcast will also be made available on the Investor Relations section of the Company’s website at https://investors.li-cycle.com.
Financial Reporting Transition to US GAAP from IFRS
Review of Financial Results
On
Twelve Months Ended
Revenue from product sales and recycling services were
Cost of sales increased to
Selling, general & administrative ("SG&A") expenses increased to
Research & development costs increased to
Other income was
Net loss was approximately
Adjusted EBITDA1 loss was approximately
Balance Sheet Position
As of
The Company’s primary need for liquidity is to fund the working capital requirements of its business during its comprehensive review of the Rochester Hub project and go-forward strategy in addition to funding the project’s existing and remaining capital commitments.
Exemption from Filing Restated Interim Financial Reports
Pursuant to subsection 4.3(4) of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”), in connection with filing its annual financial statements in accordance with
About
1
Adjusted EBITDA is not a recognized measure under
Results of Operations Summary1
|
Twelve months ended |
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$ millions, except per share data |
|
2023 |
|
|
2022 |
|
Change |
||
Financial highlights |
|
|
|
||||||
Revenue |
$ |
18.3 |
|
$ |
16.5 |
|
$ |
1.8 |
|
Cost of sales |
|
(81.8 |
) |
|
(55.2 |
) |
|
(26.6 |
) |
Selling, general and administrative expense |
|
(93.4 |
) |
|
(81.3 |
) |
|
(12.1 |
) |
Research and development |
|
(5.7 |
) |
|
(2.7 |
) |
|
(3.0 |
) |
Other income (expense) |
|
24.7 |
|
|
51.9 |
|
|
(27.2 |
) |
Income tax |
|
(0.1 |
) |
|
— |
|
|
(0.1 |
) |
Net (loss) income |
|
(138.0 |
) |
|
(70.8 |
) |
|
(67.2 |
) |
Adjusted EBITDA1 |
|
(156.4 |
) |
|
(118.5 |
) |
|
(37.9 |
) |
Loss per common share - basic and diluted |
$ |
(0.78 |
) |
$ |
(0.41 |
) |
$ |
(0.37 |
) |
Cash used in operating activities |
|
(99.8 |
) |
|
(103.6 |
) |
|
3.8 |
|
|
|
|
|
||||||
As at |
|
||||||||
Cash and cash equivalents |
|
|
|||||||
Cash and cash equivalents balance |
$ |
70.6 |
|
1 Adjusted EBITDA is a non-GAAP financial measure and does not have a standardized meaning under
Non-IFRS Financial Measures
Adjusted EBITDA (loss)
The table below reconciles adjusted EBITDA (loss) to net profit (loss):
|
Twelve months ended |
|
Two months ended |
|
Twelve months ended |
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Unaudited - $ millions |
|
2023 |
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net (loss) income |
$ |
(138.0 |
) |
|
$ |
(70.8 |
) |
|
$ |
1.6 |
|
|
$ |
22.1 |
|
|
$ |
(50.3 |
) |
|
$ |
(70.5 |
) |
Income tax |
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization |
|
8.9 |
|
|
|
4.9 |
|
|
|
1.3 |
|
|
|
0.4 |
|
|
|
3.7 |
|
|
|
1.6 |
|
Interest expense |
|
7.6 |
|
|
|
12.5 |
|
|
|
2.2 |
|
|
|
2.2 |
|
|
|
12.5 |
|
|
|
2.6 |
|
Interest income |
|
(12.7 |
) |
|
|
(10.5 |
) |
|
|
(3.5 |
) |
|
|
(0.1 |
) |
|
|
(7.0 |
) |
|
|
(0.1 |
) |
EBITDA (loss) |
|
(134.3 |
) |
|
|
(63.9 |
) |
|
|
1.6 |
|
|
|
24.6 |
|
|
|
(41.1 |
) |
|
|
(66.4 |
) |
Impairment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Share-based compensation1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.6 |
|
Fair value (gain) loss on financial instruments2 |
|
(22.1 |
) |
|
|
(54.6 |
) |
|
|
(21.4 |
) |
|
|
(34.2 |
) |
|
|
(67.5 |
) |
|
|
35.2 |
|
Adjusted EBITDA (loss) |
$ |
(156.4 |
) |
|
$ |
(118.5 |
) |
|
$ |
(19.8 |
) |
|
$ |
(9.6 |
) |
|
$ |
(108.6 |
) |
|
$ |
(29.6 |
) |
1. Share-based compensation relates to accelerated vesting of existing stock options upon completion of the Business Combination.
2. Fair value gain on financial instruments relates to convertible debt, and to warrants. Warrants were redeemed and no longer outstanding as of
Cautionary Notes - Forward-Looking Statements and Unaudited Results
Certain statements contained in this press release may be considered “forward-looking statements” within the meaning of the
These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of
|
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Consolidated b alance sheets |
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All dollar amounts presented are expressed in millions of US dollars except share and per share amounts |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Assets |
|
|
|
|
|
|
|
||||||||
Current assets |
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents |
$ |
70.6 |
|
|
$ |
517.9 |
|
|
$ |
578.3 |
|
|
$ |
596.9 |
|
Restricted cash |
|
9.7 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accounts receivable (net of allowance for credit losses of |
|
1.0 |
|
|
|
4.3 |
|
|
|
1.5 |
|
|
|
4.1 |
|
Other receivables |
|
1.9 |
|
|
|
9.8 |
|
|
|
7.7 |
|
|
|
0.9 |
|
Prepayment and deposits |
|
56.2 |
|
|
|
95.2 |
|
|
|
85.8 |
|
|
|
8.6 |
|
Inventories, net |
|
9.6 |
|
|
|
7.7 |
|
|
|
7.5 |
|
|
|
1.2 |
|
Total current assets |
|
149.0 |
|
|
|
634.9 |
|
|
|
680.8 |
|
|
|
611.7 |
|
|
|
|
|
|
|
|
|
||||||||
Non-current assets |
|
|
|
|
|
|
|
||||||||
Plant and equipment, net |
|
668.8 |
|
|
|
210.0 |
|
|
|
150.2 |
|
|
|
26.4 |
|
Operating leases right-of-use assets |
|
56.4 |
|
|
|
43.2 |
|
|
|
42.6 |
|
|
|
18.6 |
|
Finance leases right-of-use assets |
|
2.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Other assets |
|
9.6 |
|
|
|
4.6 |
|
|
|
3.9 |
|
|
|
— |
|
|
|
737.0 |
|
|
|
257.8 |
|
|
|
196.7 |
|
|
|
45.0 |
|
Total assets |
$ |
886.0 |
|
|
$ |
892.7 |
|
|
$ |
877.5 |
|
|
$ |
656.7 |
|
|
|
|
|
|
|
|
|
||||||||
Liabilities |
|
|
|
|
|
|
|
||||||||
Current liabilities |
|
|
|
|
|
|
|
||||||||
Accounts payable |
$ |
76.4 |
|
|
$ |
20.1 |
|
|
$ |
12.6 |
|
|
$ |
9.4 |
|
Accrued liabilities |
|
75.7 |
|
|
|
51.8 |
|
|
|
33.8 |
|
|
|
9.4 |
|
Deferred revenue |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Operating lease liabilities |
|
4.4 |
|
|
|
4.3 |
|
|
|
3.9 |
|
|
|
1.8 |
|
Total current liabilities |
|
156.7 |
|
|
|
76.2 |
|
|
|
50.3 |
|
|
|
20.6 |
|
|
|
|
|
|
|
|
|
||||||||
Non-current liabilities |
|
|
|
|
|
|
|
||||||||
Operating lease liabilities |
|
56.2 |
|
|
|
41.7 |
|
|
|
40.5 |
|
|
|
18.7 |
|
Finance lease liabilities |
|
2.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Deferred revenue |
|
5.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Convertible debt |
|
288.1 |
|
|
|
272.8 |
|
|
|
288.5 |
|
|
|
100.9 |
|
Warrants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
82.1 |
|
Asset retirement obligations |
|
1.0 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
0.4 |
|
|
|
352.9 |
|
|
|
314.9 |
|
|
|
329.4 |
|
|
|
202.1 |
|
Total liabilities |
$ |
509.6 |
|
|
$ |
391.1 |
|
|
$ |
379.7 |
|
|
$ |
222.7 |
|
Commitments and Contingencies |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Equity |
|
|
|
|
|
|
|
||||||||
Common stock and additional paid-in capital
Authorized unlimited shares, Issued and outstanding - 178.2 million shares (176.1, 176.0, 163.3 million shares at |
|
648.3 |
|
|
|
635.3 |
|
|
|
633.1 |
|
|
|
519.3 |
|
Accumulated deficit |
|
(271.6 |
) |
|
|
(133.6 |
) |
|
|
(135.2 |
) |
|
|
(85.0 |
) |
Accumulated other comprehensive loss |
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
|
|
(0.3 |
) |
Non-controlling interest |
|
— |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
|
— |
|
Total equity |
|
376.4 |
|
|
|
501.6 |
|
|
|
497.8 |
|
|
|
434.0 |
|
Total liabilities and equity |
$ |
886.0 |
|
|
$ |
892.7 |
|
|
$ |
877.5 |
|
|
$ |
656.7 |
|
|
|||||||||||||||
Consolidated statements of operations and comprehensive income (loss) |
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All dollar amounts presented are expressed in millions of US dollars except share and per share amounts |
|||||||||||||||
|
Year ended
|
|
Two months ended
|
|
Year ended
|
|
Year ended
|
||||||||
Revenue |
|
|
|
|
|
|
|
||||||||
Product revenue |
|
12.6 |
|
|
|
5.8 |
|
|
|
12.1 |
|
|
|
6.9 |
|
Recycling service revenue |
|
5.7 |
|
|
|
0.1 |
|
|
|
1.3 |
|
|
|
0.4 |
|
Total revenue |
|
18.3 |
|
|
|
5.9 |
|
|
|
13.4 |
|
|
|
7.3 |
|
Cost of sales |
|
|
|
|
|
|
|
||||||||
Cost of sales - Product revenue |
|
(80.0 |
) |
|
|
(10.8 |
) |
|
|
(48.4 |
) |
|
|
(13.3 |
) |
Cost of sales - Recycling service revenue |
|
(1.8 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Total cost of sales |
|
(81.8 |
) |
|
|
(10.8 |
) |
|
|
(48.4 |
) |
|
|
(13.3 |
) |
Selling, general and administrative expenses |
|
(93.4 |
) |
|
|
(14.7 |
) |
|
|
(74.9 |
) |
|
|
(22.7 |
) |
Research and development |
|
(5.7 |
) |
|
|
(0.7 |
) |
|
|
(2.4 |
) |
|
|
(3.4 |
) |
Loss from operations |
|
(162.6 |
) |
|
|
(20.3 |
) |
|
|
(112.3 |
) |
|
|
(32.1 |
) |
|
|
|
|
|
|
|
|
||||||||
Other income (expense) |
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Interest income |
|
12.7 |
|
|
|
3.5 |
|
|
|
7.0 |
|
|
|
0.1 |
|
Interest expense |
|
(7.6 |
) |
|
|
(2.2 |
) |
|
|
(12.5 |
) |
|
|
(2.6 |
) |
Foreign exchange loss |
|
(2.5 |
) |
|
|
(0.8 |
) |
|
|
— |
|
|
|
(0.7 |
) |
Fair value gain (loss) on financial instruments |
|
22.1 |
|
|
|
21.4 |
|
|
|
67.5 |
|
|
|
(35.2 |
) |
|
|
24.7 |
|
|
|
21.9 |
|
|
|
62.0 |
|
|
|
(38.4 |
) |
|
|
|
|
|
|
|
|
||||||||
Net income (loss) before taxes |
|
(137.9 |
) |
|
|
1.6 |
|
|
|
(50.3 |
) |
|
|
(70.5 |
) |
Income tax |
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net income (loss) and comprehensive income (loss) |
|
(138.0 |
) |
|
|
1.6 |
|
|
|
(50.3 |
) |
|
|
(70.5 |
) |
|
|
|
|
|
|
|
|
||||||||
(Loss) earnings per common share - basic and diluted |
$ |
(0.78 |
) |
|
$ |
0.01 |
|
|
$ |
(0.29 |
) |
|
$ |
(0.64 |
) |
|
|||||||||||||||
Consolidated statements of cash flows |
|||||||||||||||
All dollar amounts presented are expressed in millions of US dollars except share and per share amounts |
|||||||||||||||
|
For the year
|
|
For the 2 months
|
|
For the year
|
|
For the year
|
||||||||
Operating activities |
|
|
|
|
|
|
|
||||||||
Net (loss) income |
$ |
(138.0 |
) |
|
|
1.6 |
|
|
|
(50.3 |
) |
|
|
(70.5 |
) |
Adjustments to reconcile net (loss) income to net cash used in operating activities: |
|
|
|
|
|
|
|
||||||||
Stock-based compensation expense |
|
12.7 |
|
|
|
2.1 |
|
|
|
17.5 |
|
|
|
4.0 |
|
Depreciation and amortization |
|
8.9 |
|
|
|
1.3 |
|
|
|
3.7 |
|
|
|
1.6 |
|
Loss on write off of fixed assets |
|
3.9 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign exchange (gain) loss |
|
1.2 |
|
|
|
0.8 |
|
|
|
(1.3 |
) |
|
|
0.6 |
|
Fair value (gain) loss on financial instruments |
|
(22.1 |
) |
|
|
(21.4 |
) |
|
|
(67.5 |
) |
|
|
35.2 |
|
Inventory write downs to net realizable value |
|
6.0 |
|
|
|
1.0 |
|
|
|
6.4 |
|
|
|
2.9 |
|
Income tax expense |
|
0.1 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Bad debt expense |
|
1.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Interest and accretion on convertible debt |
|
7.6 |
|
|
|
2.2 |
|
|
|
12.3 |
|
|
|
1.1 |
|
Non-cash lease expense |
|
0.6 |
|
|
|
0.3 |
|
|
|
0.9 |
|
|
|
— |
|
|
|
(117.9 |
) |
|
|
(12.1 |
) |
|
|
(78.3 |
) |
|
|
(25.1 |
) |
Changes in working capital items: |
|
|
|
|
|
|
|
||||||||
Accounts receivable |
|
2.5 |
|
|
|
(2.8 |
) |
|
|
2.6 |
|
|
|
(3.5 |
) |
Other receivables |
|
8.0 |
|
|
|
(2.2 |
) |
|
|
(6.8 |
) |
|
|
(0.7 |
) |
Prepayments and deposits |
|
(1.9 |
) |
|
|
0.3 |
|
|
|
(3.3 |
) |
|
|
(4.8 |
) |
Inventories |
|
(8.7 |
) |
|
|
(1.3 |
) |
|
|
(12.7 |
) |
|
|
(3.9 |
) |
Deferred revenue |
|
0.2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Accounts payable |
|
8.1 |
|
|
|
(5.8 |
) |
|
|
7.1 |
|
|
|
7.0 |
|
Accrued liabilities |
|
9.9 |
|
|
|
(17.0 |
) |
|
|
14.4 |
|
|
|
5.4 |
|
Net cash used in operating activities |
|
(99.8 |
) |
|
|
(40.9 |
) |
|
|
(77.0 |
) |
|
|
(25.6 |
) |
|
|
|
|
|
|
|
|
||||||||
Investing activities |
|
|
|
|
|
|
|
||||||||
Purchases of property, plant, equipment, and other assets |
|
(334.9 |
) |
|
|
(18.9 |
) |
|
|
(190.1 |
) |
|
|
(21.4 |
) |
Net cash used in investing activities |
|
(334.9 |
) |
|
|
(18.9 |
) |
|
|
(190.1 |
) |
|
|
(21.4 |
) |
|
|
|
|
|
|
|
|
||||||||
Financing activities |
|
|
|
|
|
|
|
||||||||
Payments of transaction costs |
|
(7.8 |
) |
|
|
(0.6 |
) |
|
|
(0.3 |
) |
|
|
— |
|
Proceeds from reservation fees recorded in deferred revenue |
|
5.3 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Capital contribution from (payment to) the holders of non-controlling interest in subsidiary |
|
(0.4 |
) |
|
|
— |
|
|
|
0.3 |
|
|
|
— |
|
Proceeds from private share issuance, net of share issuance costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
21.6 |
|
Proceeds from public share issuance, net of share issuance costs |
|
— |
|
|
|
— |
|
|
|
49.7 |
|
|
|
525.3 |
|
Proceeds from exercise of stock options |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.2 |
|
Proceeds from exercise of warrants |
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
|
— |
|
Proceeds from convertible debt, net of issuance cost |
|
— |
|
|
|
— |
|
|
|
198.7 |
|
|
|
98.4 |
|
Proceeds from loan payable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10.1 |
|
Proceeds from government grants |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
Repayment of loan payable |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(12.5 |
) |
Net cash (used in) provided by financing activities |
|
(2.9 |
) |
|
|
(0.6 |
) |
|
|
248.5 |
|
|
|
643.2 |
|
|
|
|
|
|
|
|
|
||||||||
Net change in cash, cash equivalents and restricted cash |
|
(437.6 |
) |
|
|
(60.4 |
) |
|
|
(18.6 |
) |
|
|
596.2 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
517.9 |
|
|
|
578.3 |
|
|
|
596.9 |
|
|
|
0.7 |
|
Cash, cash equivalents and restricted cash, end of year |
$ |
80.3 |
|
|
$ |
517.9 |
|
|
$ |
578.3 |
|
|
$ |
596.9 |
|
Supplemental non-cash investing activities: |
|
|
|
|
|
|
|
||||||||
Purchases of property and equipment included in liabilities |
$ |
87.6 |
|
|
$ |
48.6 |
|
|
$ |
7.2 |
|
|
$ |
2.1 |
|
Supplemental information: |
|
|
|
|
|
|
|
||||||||
Interest paid |
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
(1.5 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240315424653/en/
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