For Release:
4:01 p.m. Eastern, March 3, 2014
HIGHLIGHTS:
-
The Company announced that the Chlor-Alkali plant
at its Mountain Pass, California rare earth facility has
successfully completed commissioning and is now operational, which
facilitates increased production volumes at lower production
costs.
-
The Company reported fourth quarter product sales
volume of 3,201 metric tons (mt), a 12% decrease over the third
quarter, at an average selling price ("ASP") of $38.68 per
kilogram. Net revenues for the quarter were $123.8 million, a 17%
decrease from the third quarter.
-
For the full year 2013, the Company reported sales
volume of 13,118 mt, a 42% increase over 2012, at an ASP of $42.26
per kilogram. Net revenues for the year were $554.4 million, a 5%
increase as compared to 2012.
-
For the full year 2013, the Company reported a net
loss of $2.21 per share, which includes a loss of $0.04 per share
related to discontinued operations. On an adjusted non-GAAP basis,
the Company reported a net loss of $1.09 per share for the full
year.
Greenwood Village,
CO (March 3, 2014) -
Molycorp, Inc. (NYSE: MCP) ("Molycorp" or the "Company") today
announced financial and operating results for the fourth quarter
and full year 2013.
The Company announced that it had achieved a
significant milestone with the completion of commissioning and the
operational start-up of the Chlor-Alkali plant at its Mountain
Pass, California rare earth facility. That plant utilizes
recycled wastewater from Mountain Pass operations to produce
chemical reagents used in rare earth production.
"Putting our Chlor-Alkali plant into operation is
a major milestone. Producing our own chemical reagents and reducing
our water discharge will lower our costs, and this unit further
reduces the environmental footprint of rare earth production at
Mountain Pass," said Molycorp President and CEO Geoff Bedford. "It
will play a key role in helping us achieve operating break-even
cash flow, before interest, this year."
FOURTH QUARTER 2013
RESULTS
The Company reported consolidated net revenues of
$123.8 million, a 17% decrease over the third quarter of 2013. The
decrease in revenues was largely driven by a shifting product mix,
with higher sales volumes from its Chemicals and Oxides segment,
offset by softened pricing for rare earths and lower volumes of
magnetic powders in its Magnetic Materials and Alloys segment.
During the fourth quarter, the Company sold 3,201
mt of product at an ASP of $38.68 per kilogram, and generated a
gross loss of $27.0 million. This compares to sales volumes of
3,620 mt at an ASP of $41.18 per kilogram and a gross loss of $17.8
million during the third quarter of 2013. The Company produced
1,099 metric tons and 1,000 metric tons of rare earth oxides at its
Mountain Pass facility during the third and fourth quarters of
2013, respectively. Actual production was lower than expected as a
result of production interruptions while the Company continues to
optimize operations, and this lower than expected production has
continued through the first two months of 2014.
Molycorp reported a loss attributable to common
stockholders of $197.2 million, or $0.95 per share. Adjusted loss
per share of $0.28 in the fourth quarter of 2013 does not reflect
impairment charges for goodwill and other intangible assets,
out-of-ordinary business expenses, and certain other non-cash
items.
The Company reported negative cash flows from
operating activities of $64.3 million during the fourth quarter,
and had $314.3 million in cash and cash equivalents as of December
31, 2013.
During the three months ended December 31, 2013,
Molycorp's capital expenditures were $44.7 million on a cash
basis.
FULL YEAR 2013
RESULTS
Note: Prior year numbers exclude operating results
from the Napanee facility, which is treated as a discontinued
operation for comparative purposes.
The Company reported consolidated net revenues of
$554.4 million, a 5% increase as compared to the full year 2012.
The increase in revenues was largely driven by increased volume
sales within its Magnetic Materials and Alloys segment, and its
Rare Metals segment, slightly offset by lower realized pricing
within its Resources segment. As a reminder, full year 2012
financial results included a partial year of contribution from its
Molycorp Canada business, which was acquired in June 2012.
For the full year, the Company sold 13,118 mt of
product at an ASP of $42.26 per kilogram, and generated a gross
loss of $67.2 million. This compares to volume sales of 9,207 mt at
an ASP of $57.00 per kilogram and a gross profit of $18.8 million
for the full year 2012.
Molycorp reported a full year loss attributable to
common stockholders of $385.8 million, or $2.21 per share. Adjusted
loss per share of $1.09 for the full year 2013 eliminates the
effect of operational expansion items, out-of-ordinary business
expenses, and certain other non-cash items.
The Company reported negative cash flows from
operating activities of $154.4 million during the year. Capital
expenditures for the Company on a cash basis for the full year were
$379.3 million. For the full year ending December 31, 2014, the
Company estimates that its capital expenditures will total
approximately $85-$90 million.
CONFERENCE
CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD
TIME
Molycorp will conduct a conference call on
Tuesday, March 4, 2014 to discuss these results at 9:00 a.m. EST,
hosted by Geoff Bedford, President and Chief Executive Officer, and
Michael Doolan, Executive Vice President and Chief Financial
Officer. Investors interested in participating in the live call
from the U.S. should dial +1 (866) 318-8617 and reference passcode
number 35281723. Those calling from outside the U.S. should dial +1
(617) 399-5136 and reference the same passcode as above.
There will also be a simultaneous live audio
webcast available on the Investor Relations section of the
Company's website at www.molycorp.com/investors. The webcast will
be archived on the website. A PowerPoint presentation that will be
broadcast live via webcast during the conference call will be made
available on the website immediately prior to the call.
NON-GAAP
ADJUSTED NET LOSS, EBITDA and ADJUSTED EBITDA
Adjusted net loss is a non-GAAP measure that
excludes certain non-cash items and other out-of-ordinary business
expense and operational expansion items. EBITDA is also a non-GAAP
measure that excludes interest, tax, depreciation and amortization.
Adjusted EBITDA consists of EBITDA excluding certain non-cash items
and other out-of-ordinary business expense and operational
expansion items. The Company's management believes adjusting out
these items, including but not limited to purchase accounting
adjustments, stock-based compensation, out-of-ordinary
expenses/income, asset impairment charges and other miscellaneous
charges, is useful to investors because it provides an overall
understanding of the Company's historical financial performance and
future prospects. Management believes adjusted net loss, EBITDA and
adjusted EBITDA are an indication of the Company's base-line
performance. Exclusion of these items permits evaluation and
comparison of results for the Company's core business operations,
and it is on this basis that management internally assesses the
Company's performance.
# # #
FOR MORE
INFORMATION:
Company Contacts:
Jim Sims, +1 (303)
843-8062
Vice President Corporate Communications
jim.sims@molycorp.com
Brian Blackman, +1
(303) 843-8067
Vice President Investor Relations
brian.blackman@molycorp.com
FINANCIAL
STATEMENTS AND SUPPLEMENTARY TABLES
TABLE 1:
BALANCE SHEETS
MOLYCORP,
INC.
Consolidated Balance Sheets
(In thousands, except share and per share amounts)
|
At December 31, |
|
2013 |
|
2012 |
| ASSETS |
| Current assets: |
|
|
|
| Cash and cash equivalents |
$ |
314,317 |
|
|
$ |
227,790 |
|
| Trade accounts receivable, net |
61,757 |
|
|
52,430 |
|
| Inventory |
171,783 |
|
|
287,376 |
|
| Deferred charges |
1,046 |
|
|
9,412 |
|
| Deferred tax assets |
1,456 |
|
|
9,789 |
|
| Income tax receivable |
787 |
|
|
25,087 |
|
| Prepaid expenses and other
current assets |
25,921 |
|
|
21,794 |
|
| Total current assets |
577,067 |
|
|
633,678 |
|
| Non-current assets: |
|
|
|
| Deposits |
25,997 |
|
|
26,769 |
|
| Property, plant and equipment,
net |
1,762,874 |
|
|
1,544,304 |
|
| Inventory |
25,329 |
|
|
26,096 |
|
| Intangible assets, net |
330,867 |
|
|
450,938 |
|
| Deferred tax assets |
109 |
|
|
- |
|
| Investments |
48,875 |
|
|
64,036 |
|
| Goodwill |
228,750 |
|
|
239,742 |
|
| Other non-current assets |
6,934 |
|
|
6,972 |
|
| Total non-current assets |
2,429,735 |
|
|
2,358,857 |
|
| Total
assets |
$ |
3,006,802 |
|
|
$ |
2,992,535 |
|
|
|
|
|
|
2013 |
|
2012 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |
| Current liabilities: |
|
|
|
| Trade accounts payable |
$ |
84,449 |
|
|
$ |
241,994 |
|
| Accrued expenses |
48,501 |
|
|
59,013 |
|
| Income tax payable |
1,946 |
|
|
15,267 |
|
| Deferred tax liabilities |
1,500 |
|
|
- |
|
| Debt and capital lease obligations |
16,362 |
|
|
39,604 |
|
| Other current liabilities |
617 |
|
|
3,539 |
|
| Total current liabilities |
153,375 |
|
|
359,417 |
|
| Non-current liabilities: |
|
|
|
| Asset retirement obligation |
16,966 |
|
|
18,586 |
|
| Deferred tax liabilities |
85,481 |
|
|
160,675 |
|
| Debt and capital lease obligations |
1,363,916 |
|
|
1,188,832 |
|
| Derivative liability |
6,089 |
|
|
7,816 |
|
| Pension liabilities |
2,044 |
|
|
3,292 |
|
| Other non-current
liabilities |
1,869 |
|
|
2,659 |
|
| Total non-current liabilities |
1,476,365 |
|
|
1,381,860 |
|
| Total
liabilities |
$ |
1,629,740 |
|
|
$ |
1,741,277 |
|
| Commitments and contingencies |
|
|
|
| Stockholders' equity: |
|
|
|
| Common stock, $0.001 par value; 350,000,000 shares
authorized at December 31, 2013 |
241 |
|
|
139 |
|
| Preferred stock, $0.001 par
value; 5,000,000 shares authorized at December 31, 2013 |
2 |
|
|
2 |
|
| Additional paid-in capital |
2,194,405 |
|
|
1,691,429 |
|
| Accumulated other
comprehensive loss |
(6,451 |
) |
|
(9,433 |
) |
| Accumulated deficit |
(840,474 |
) |
|
(466,091 |
) |
| Total Molycorp stockholders'
equity |
1,347,723 |
|
|
1,216,046 |
|
| Noncontrolling interests |
29,339 |
|
|
35,212 |
|
| Total stockholders'
equity |
1,377,062 |
|
|
1,251,258 |
|
| Total liabilities and stockholders'
equity |
$ |
3,006,802 |
|
|
$ |
2,992,535 |
|
TABLE 2:
INCOME STATEMENTS
MOLYCORP,
INC.
Consolidated Statements of Operations and Comprehensive
Income
(In thousands, except share and per share amounts)
|
Quarter Ended |
|
Years Ended December
31, |
|
December 31,
2013 |
|
2013 |
|
2012 |
| Revenues |
$ |
123,814 |
|
|
$ |
554,390 |
|
|
$ |
527,696 |
|
| Costs of sales: |
|
|
|
|
|
| Costs excluding depreciation
and amortization |
(132,419 |
) |
|
(553,831 |
) |
|
(478,253 |
) |
| Depreciation and amortization |
(18,444 |
) |
|
(67,727 |
) |
|
(30,621 |
) |
| Gross (loss) profit |
(27,049 |
) |
|
(67,168 |
) |
|
18,822 |
|
| Operating expenses: |
|
|
|
|
|
| Selling, general and
administrative |
(30,723 |
) |
|
(107,169 |
) |
|
(113,437 |
) |
| Corporate development |
9 |
|
|
(247 |
) |
|
(19,796 |
) |
| Depreciation, amortization and
accretion |
(11,764 |
) |
|
(38,037 |
) |
|
(22,187 |
) |
| Research and development |
(4,696 |
) |
|
(23,172 |
) |
|
(27,796 |
) |
| Impairment of goodwill and
other long-lived assets |
(119,403 |
) |
|
(120,898 |
) |
|
(301,755 |
) |
| Operating loss |
(193,626 |
) |
|
(356,691 |
) |
|
(466,149 |
) |
| Other (expense) income: |
|
|
|
|
|
| Other expense |
(8,669 |
) |
|
(7,525 |
) |
|
(38,798 |
) |
| Foreign exchange gain (loss),
net |
(1,420 |
) |
|
(376 |
) |
|
2,872 |
|
| Interest expense, net of capitalized interest |
(24,877 |
) |
|
(67,684 |
) |
|
(22,116 |
) |
|
(34,966 |
) |
|
(75,585 |
) |
|
(58,042 |
) |
| Loss from continuing operations before income taxes and
equity earnings |
(228,592 |
) |
|
(432,276 |
) |
|
(524,191 |
) |
| Income tax benefit |
32,021 |
|
|
70,943 |
|
|
54,075 |
|
| Equity in results of affiliates |
(480 |
) |
|
(9,169 |
) |
|
(3,490 |
) |
| Loss from continuing
operations |
(197,051 |
) |
|
(370,502 |
) |
|
(473,606 |
) |
| Loss from discontinued operations, net of tax |
(1,237 |
) |
|
(6,427 |
) |
|
(1,737 |
) |
| Net loss |
(198,288 |
) |
|
(376,929 |
) |
|
(475,343 |
) |
| Net loss (income) attributable to noncontrolling
interests |
3,980 |
|
|
2,546 |
|
|
(5,826 |
) |
| Net loss attributable to
Molycorp stockholders |
$ |
(194,308 |
) |
|
$ |
(374,383 |
) |
|
$ |
(481,169 |
) |
|
|
|
|
|
|
| Net loss |
$ |
(198,288 |
) |
|
$ |
(376,929 |
) |
|
$ |
(475,343 |
) |
| Other comprehensive income (loss), net of tax: |
|
|
|
|
|
| Foreign currency translation
adjustments |
38 |
|
|
1,623 |
|
|
248 |
|
| Actuarial gain (loss) |
1,359 |
|
|
1,359 |
|
|
(1,200 |
) |
| Comprehensive loss |
$ |
(196,891 |
) |
|
$ |
(373,947 |
) |
|
$ |
(476,295 |
) |
| Comprehensive (loss) income attributable to: |
|
|
|
|
|
| Molycorp stockholders |
(200,871 |
) |
|
(376,493 |
) |
|
(470,469 |
) |
| Noncontrolling interests |
3,980 |
|
|
2,546 |
|
|
(5,826 |
) |
|
$ |
(196,891 |
) |
|
$ |
(373,947 |
) |
|
$ |
(476,295 |
) |
| Loss per share of common stock: |
|
|
|
|
|
| Basic: |
|
|
|
|
|
| Continuing operations |
$ |
(0.94 |
) |
|
$ |
(2.17 |
) |
|
$ |
(4.58 |
) |
| Discontinued operations |
(0.01 |
) |
|
(0.04 |
) |
|
(0.02 |
) |
|
$ |
(0.95 |
) |
|
$ |
(2.21 |
) |
|
$ |
(4.60 |
) |
TABLE 3:
STATEMENTS OF CASH FLOWS
MOLYCORP,
INC
Consolidated Statements of Cash Flows
(In thousands)
|
Years Ended December
31, |
|
2013 |
|
2012 |
| Cash flows from operating activities: |
|
|
|
| Net (loss) income |
$ |
(376,929 |
) |
|
$ |
(475,343 |
) |
| Adjustments to reconcile net (loss) income to net cash
from operating activities: |
|
|
|
| Depreciation, amortization and
accretion |
105,764 |
|
|
52,808 |
|
| Deferred income tax (benefit) expense |
(68,290 |
) |
|
(23,563 |
) |
| Inventory write-downs |
100,346 |
|
|
83,039 |
|
| Release of inventory step-up value |
3,068 |
|
|
24,729 |
|
| Impairment of goodwill and
other long-lived assets |
120,898 |
|
|
301,755 |
|
| Impairment of cost-method investment |
9,411 |
|
|
- |
|
| Stock-based compensation |
5,392 |
|
|
3,434 |
|
| Allowance for doubtful accounts |
- |
|
|
2,556 |
|
| Foreign exchange loss |
(454 |
) |
|
1,988 |
|
| Equity in results of affiliates |
9,169 |
|
|
3,490 |
|
| Other operating
activities |
1,993 |
|
|
(4,648 |
) |
| Net change in operating assets and liabilities |
(64,719 |
) |
|
(59,880 |
) |
| Net cash (used in) provided by
operating activities |
(154,351 |
) |
|
(89,635 |
) |
| Cash flows from investing activities: |
|
|
|
| Cash paid in connection with
acquisitions, net of cash acquired |
- |
|
|
(591,011 |
) |
| Investment in joint ventures |
(3,423 |
) |
|
(33,044 |
) |
| Deposits |
- |
|
|
(3,999 |
) |
| Capital expenditures |
(379,312 |
) |
|
(791,469 |
) |
| Acquisition of exploration
rights |
- |
|
|
(8,167 |
) |
| Other investing activities |
5,477 |
|
|
4,761 |
|
| Net cash used in investing
activities |
(377,258 |
) |
|
(1,422,929 |
) |
| Cash flows from financing activities: |
|
|
|
| Issuance of shares to
Molymet |
- |
|
|
390,093 |
|
| Repayments of debt |
(26,823 |
) |
|
(228,708 |
) |
| Net proceeds from sale of
common stock |
495,717 |
|
|
132,130 |
|
| Issuance of 5.50% Senior Secured Notes |
165,600 |
|
|
- |
|
| Issuance of 10% Senior Secured
Notes |
- |
|
|
635,373 |
|
| Issuance of 6.00% Convertible Notes |
- |
|
|
395,712 |
|
| Payments of preferred
dividends |
(11,385 |
) |
|
(11,385 |
) |
| Distribution paid to noncontrolling interests |
(4,546 |
) |
|
(5,977 |
) |
| Proceeds from debt |
- |
|
|
14,699 |
|
| Other financing activities |
(1,297 |
) |
|
(1,554 |
) |
| Net cash provided by financing
activities |
617,266 |
|
|
1,320,383 |
|
| Effect of exchange rate changes on cash |
870 |
|
|
1,116 |
|
| Net change in cash and cash
equivalents |
86,527 |
|
|
(191,065 |
) |
| Cash and cash equivalents at beginning of the period |
227,790 |
|
|
418,855 |
|
| Cash and cash equivalents at
end of period |
$ |
314,317 |
|
|
$ |
227,790 |
|
TABLE 4:
SEGMENT INFORMATION
| Year ended December 31,
2013 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other |
|
Eliminations |
|
Total Molycorp, Inc. |
| Revenues: |
(In
thousands of dollars) |
| External |
33,621 |
|
|
181,815 |
|
|
252,713 |
|
|
86,241 |
|
|
|
|
- |
|
|
554,390 |
|
| Intersegment |
26,040 |
|
|
37,256 |
|
|
- |
|
|
- |
|
|
|
|
(63,296 |
) |
|
- |
|
| Total revenues |
59,661 |
|
|
219,071 |
|
|
252,713 |
|
|
86,241 |
|
|
|
|
(63,296 |
) |
|
554,390 |
|
| Depreciation, amortization and accretion |
(46,318 |
) |
|
(22,754 |
) |
|
(27,812 |
) |
|
(8,652 |
) |
|
(228 |
) |
|
- |
|
|
(105,764 |
) |
| Operating loss |
(223,702 |
) |
|
(87,889 |
) |
|
23,087 |
|
|
(21,108 |
) |
|
(46,126 |
) |
|
(953 |
) |
|
(356,691 |
) |
| Loss before income taxes and equity earnings |
(231,944 |
) |
|
(87,848 |
) |
|
62,107 |
|
|
(18,326 |
) |
|
(155,312 |
) |
|
(953 |
) |
|
(432,276 |
) |
| Total assets at December 31,
2013 |
1,791,421 |
|
|
485,642 |
|
|
590,516 |
|
|
82,538 |
|
|
1,547,267 |
|
|
(1,490,582 |
) |
|
3,006,802 |
|
| Capital expenditures |
231,027 |
|
|
6,961 |
|
|
3,700 |
|
|
7,549 |
|
|
250 |
|
|
- |
|
|
249,487 |
|
| Quarter ended
December 31, 2013 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other |
|
Eliminations |
|
Total Molycorp, Inc. |
| Revenues: |
(In
thousands of dollars) |
| External |
3,386 |
|
|
46,635 |
|
|
59,296 |
|
|
14,497 |
|
|
- |
|
|
- |
|
|
123,814 |
|
| Intersegment |
7,872 |
|
|
8,780 |
|
|
- |
|
|
- |
|
|
- |
|
|
(16,652 |
) |
|
- |
|
| Total revenues |
11,258 |
|
|
55,415 |
|
|
59,296 |
|
|
14,497 |
|
|
- |
|
|
(16,652 |
) |
|
123,814 |
|
| Depreciation, amortization and accretion |
(14,782 |
) |
|
(5,667 |
) |
|
(7,452 |
) |
|
(2,250 |
) |
|
(57 |
) |
|
- |
|
|
(30,208 |
) |
| Operating income (loss) |
(87,647 |
) |
|
(68,010 |
) |
|
(5,376 |
) |
|
(18,936 |
) |
|
(13,805 |
) |
|
148 |
|
|
(193,626 |
) |
| Loss before income taxes and equity earnings |
(96,897 |
) |
|
(69,410 |
) |
|
(4,982 |
) |
|
(18,380 |
) |
|
(39,071 |
) |
|
148 |
|
|
(228,592 |
) |
| Capital expenditures |
25,358 |
|
|
1,289 |
|
|
790 |
|
|
1,954 |
|
|
6 |
|
|
- |
|
|
29,397 |
|
| Year ended December 31,
2012 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other |
|
Eliminations |
|
Total Molycorp, Inc. |
| Revenues: |
(In
thousands of dollars) |
| External |
88,870 |
|
|
181,849 |
|
|
179,335 |
|
|
77,642 |
|
|
|
|
- |
|
|
527,696 |
|
| Intersegment |
7,256 |
|
|
25,717 |
|
|
|
|
|
|
|
|
(32,973 |
) |
|
- |
|
| Total revenues |
96,126 |
|
|
207,566 |
|
|
179,335 |
|
|
77,642 |
|
|
|
|
(32,973 |
) |
|
527,696 |
|
| Depreciation, amortization and accretion |
(13,991 |
) |
|
(13,110 |
) |
|
(19,737 |
) |
|
(5,837 |
) |
|
(133 |
) |
|
- |
|
|
(52,808 |
) |
| Operating loss |
(70,220 |
) |
|
(191,059 |
) |
|
(125,543 |
) |
|
(18,671 |
) |
|
(85,459 |
) |
|
24,803 |
|
|
(466,149 |
) |
| Loss before income taxes and equity earnings |
(70,469 |
) |
|
(190,094 |
) |
|
(126,981 |
) |
|
(18,181 |
) |
|
(143,269 |
) |
|
24,803 |
|
|
(524,191 |
) |
| Total assets at December 31,
2012 |
1,802,842 |
|
|
639,847 |
|
|
593,197 |
|
|
117,961 |
|
|
575,964 |
|
|
(737,276 |
) |
|
2,992,535 |
|
| Capital expenditures |
814,054 |
|
|
10,910 |
|
|
5,614 |
|
|
10,750 |
|
|
1,733 |
|
|
- |
|
|
843,061 |
|
TABLE 5:
LOSS PER SHARE
|
Quarter Ended |
|
Years Ended December
31, |
|
December 31,
2013 |
|
2013 |
|
2012 |
|
(In thousands, except share and per
share amounts) |
| Net (loss) income attributable
to Molycorp stockholders |
$ |
(194,308 |
) |
|
$ |
(374,383 |
) |
|
$ |
(481,169 |
) |
| Dividends on Convertible Preferred Stock |
(2,846 |
) |
|
(11,385 |
) |
|
(11,385 |
) |
| (Loss) income attributable to
common stockholders |
(197,154 |
) |
|
(385,768 |
) |
|
(492,554 |
) |
|
|
|
|
|
|
| Continuing
operations |
$ |
(195,917 |
) |
|
$ |
(379,341 |
) |
|
$ |
(490,817 |
) |
| Discontinued operations |
(1,237 |
) |
|
(6,427 |
) |
|
(1,737 |
) |
|
$ |
(197,154 |
) |
|
$ |
(385,768 |
) |
|
$ |
(492,554 |
) |
|
|
|
|
|
|
| Weighted average common shares
outstanding-basic |
208,080,170 |
|
|
174,528,717 |
|
|
107,064,892 |
|
|
|
|
|
|
|
| Basic (loss) earnings per share from: |
|
|
|
|
|
| Continuing
operations |
$ |
(0.94 |
) |
|
$ |
(2.17 |
) |
|
$ |
(4.58 |
) |
| Discontinued operations |
(0.01 |
) |
|
(0.04 |
) |
|
(0.02 |
) |
|
$ |
(0.95 |
) |
|
$ |
(2.21 |
) |
|
$ |
(4.60 |
) |
|
|
|
|
|
|
TABLE 6:
PRODUCT REVENUES, VOLUMES, ASP
|
Quarter Ended |
|
Years Ended December
31, |
| Revenues (in
thousands) |
December 31,
2013 |
|
2013 |
|
2012 |
| Resources (1) |
$ |
11,258 |
|
|
$ |
59,661 |
|
|
$ |
96,126 |
|
| Chemicals and Oxides (2) |
55,415 |
|
|
219,071 |
|
|
207,566 |
|
| Magnetic Materials and Alloys
(3) |
59,296 |
|
|
252,713 |
|
|
179,335 |
|
| Rare Metals (4) |
14,497 |
|
|
86,241 |
|
|
77,642 |
|
| Intersegments
eliminations |
(16,652 |
) |
|
(63,296 |
) |
|
(32,973 |
) |
| Total Net Revenues |
$ |
123,814 |
|
|
$ |
554,390 |
|
|
$ |
527,696 |
|
|
|
|
|
|
|
|
Quarter Ended |
|
Years Ended December
31, |
| Volumes (in metric
tons) |
December 31,
2013 |
|
2013 |
|
2012 |
| Resources |
1,034 |
|
|
3,926 |
|
|
2,661 |
|
| Chemicals and Oxides |
1,760 |
|
|
6,588 |
|
|
4,631 |
|
| Magnetic Materials and
Alloys |
1,353 |
|
|
5,884 |
|
|
3,115 |
|
| Rare Metals |
58 |
|
|
317 |
|
|
350 |
|
| Intersegments
eliminations |
(1,004 |
) |
|
(3,597 |
) |
|
(1,550 |
) |
|
|
|
|
|
|
|
Quarter Ended |
|
Years Ended December
31, |
| ASP per kilogram |
December 31,
2013 |
|
2013 |
|
2012 |
| Resources |
$ |
10.89 |
|
|
$ |
15.20 |
|
|
$ |
36.12 |
|
| Chemicals and Oxides |
$ |
31.48 |
|
|
$ |
33.25 |
|
|
$ |
44.82 |
|
| Magnetic Materials and
Alloys |
$ |
43.82 |
|
|
$ |
42.95 |
|
|
$ |
57.57 |
|
| Rare Metals |
$ |
249.93 |
|
|
$ |
272.05 |
|
|
$ |
221.83 |
|
| 1. The Resources segment
includes operations at our Molycorp Mountain Pass facility where we
conduct rare earth minerals extraction to produce: purified
unseparated light rare earth concentrates, or LREC; separated rare
earth oxides, including lanthanum, cerium and
neodymium/praseodymium; heavy rare earth concentrates, which
include samarium, europium, gadolinium, or SEG, terbium, dysprosium
and others; and a line of proprietary rare earth-based water
treatment products, including SorbX(TM) and PhosFIX(TM). |
| 2. The Chemicals and Oxides
division includes: production of rare earths at our operations at
Molycorp Silmet; heavy rare earths and other custom engineered
materials from our facilities in Jiangyin, Jiangsu Province, China;
and production of rare earths, salts of REEs, zirconium-based
engineered materials and mixed rare earth/zirconium oxides from our
facilities in Zibo, Shandong Province, China. Rare earth and
zirconium applications from products made in this segment include
catalytic converters, computers, television display panels, optical
lenses, mobile phones, electronic chips, and many others. |
| 3. The Magnetic Materials and
Alloys segment includes: the production of Neo Powders(TM) through
our wholly-owned manufacturing facilities in Tianjin, China, and
Korat, Thailand, under the Molycorp Magnequench brand. This
operating segment also includes manufacturing of neodymium and
samarium magnet alloys, other specialty alloy products and rare
earth metals at our MMA facility. Neo Powders(TM) are used in micro
motors, precision motors, sensors, and other applications requiring
high levels of magnetic strength, flexibility, small size and
reduced weight. |
| 4. The Rare Metals segment
produces, reclaims, refines and markets high value niche metals and
their compounds including gallium, indium, rhenium, tantalum, and
niobium. Our operating facilities in this segment are located
in Quapaw, Oklahoma; Blanding, Utah; Peterborough, Ontario; Sagard,
Germany; Hyeongok Industrial Zone in South Korea; and Sillamäe,
Estonia. Applications from products made in this segment include
wireless technologies, LED, flat panel display, turbine, solar,
catalyst, steel additive, electronics applications, and
others. |
TABLE 7:
NON-GAAP ADJUSTED NET LOSS, EBITDA and ADJUSTED EBITDA
RECONCILIATION
(In thousands, except share
and per share data)
| Adjusted Net
Loss |
|
|
|
|
December 31, 2013 |
|
Year Ended |
|
Quarter
Ended |
| Net loss attributable to
Molycorp stockholders |
$ |
(374,383 |
) |
|
$ |
(194,308 |
) |
| Certain non-cash and other items: |
|
|
|
| Stock-based
compensation |
5,392 |
|
|
2,993 |
|
| Inventory write-downs |
70,615 |
|
|
16,816 |
|
| Impact of
purchase accounting on cost of inventory sold |
3,068 |
|
|
(1,376 |
) |
| Impairment of Goodwill, long-lived asset and
intangibles |
123,171 |
|
|
119,717 |
|
| Investment
write-downs |
9,414 |
|
|
9,414 |
|
| Out-of-ordinary items: |
|
|
|
| Water removal |
19,228 |
|
|
5,385 |
|
| Income tax effect of above adjustments |
(35,949 |
) |
|
(15,065 |
) |
| Adjusted net (loss)
income |
(179,444 |
) |
|
(56,424 |
) |
| Dividends on Convertible Preferred Stock |
(11,385 |
) |
|
(2,846 |
) |
| Adjusted net loss attributed
to common stockholders |
$ |
(190,829 |
) |
|
$ |
(59,270 |
) |
| Weighted average common shares outstanding |
174,528,717 |
|
|
208,080,170 |
|
| Adjusted net (loss) earnings
per share |
$ |
(1.09 |
) |
|
$ |
(0.28 |
) |
| EBITDA and
Adjusted EBITDA |
|
|
|
|
December 31, 2013 |
|
Year Ended |
|
Quarter
Ended |
| Operating loss |
$ |
(356,691 |
) |
|
$ |
(193,626 |
) |
| Depreciation and amortization
included in costs of sales |
67,727 |
|
|
18,444 |
|
| Depreciation, amortization and accretion |
38,037 |
|
|
11,764 |
|
| EBITDA |
(250,927 |
) |
|
(163,418 |
) |
|
|
|
|
| Stock-based compensation |
5,392 |
|
|
2,993 |
|
| Inventory write-downs |
70,615 |
|
|
16,816 |
|
| Impact of purchase accounting
on cost of inventory sold |
3,068 |
|
|
(1,376 |
) |
| Impairment of Goodwill, long-lived asset and
intangibles |
123,171 |
|
|
119,717 |
|
| Investment write-downs |
9,414 |
|
|
9,414 |
|
| Water removal |
19,228 |
|
|
5,385 |
|
| Adjusted EBITDA |
$ |
(20,039 |
) |
|
$ |
(10,469 |
) |
ABOUT
MOLYCORP
Molycorp is the only advanced material
manufacturer in the world that both controls a world-class rare
earth resource and can produce high-purity, custom engineered rare
earth products to meet increasingly demanding customer
specifications. A globally integrated manufacturer, the Company
produces a wide variety of specialized products from 13 different
rare earths (lights and heavies), five rare metals (gallium,
indium, rhenium, tantalum and niobium), and the transition metals
yttrium and zirconium. With 27 locations across 11 countries,
Molycorp also produces rare earth magnetic materials through its
Molycorp Magnequench subsidiary, including neodymium-iron-boron
("NdFeB") magnet powders, used to manufacture bonded NdFeB
permanent rare earth magnets. Through its joint venture with Daido
Steel and the Mitsubishi Corporation, Molycorp manufactures
next-generation, sintered NdFeB permanent rare earth magnets.
Through its Molycorp Advanced Water Technologies subsidiary, the
Company markets and sells its proprietary, cerium-based advanced
water purification technology called SorbX(TM) for use in municipal
and industrial wastewater treatment, recreational water, and pool
and spa water treatment markets. For more information please visit
http://www.molycorp.com.
SAFE
HARBOR STATEMENT REGARDING FORWARD-LOOKING
STATEMENTS
This release contains forward-looking statements
that represent Molycorp's beliefs, projections and predictions
about future events or Molycorp's future performance.
Forward-looking statements can be identified by terminology such as
"may," "will," "would," "could," "should," "expect," "intend,"
"plan," "anticipate," "believe," "estimate," "predict,"
"potential," "continue" or the negative of these terms or other
similar expressions or phrases. These forward-looking statements
are necessarily subjective and involve known and unknown risks,
uncertainties and other important factors that could cause
Molycorp's actual results, performance or achievements or industry
results to differ materially from any future results, performance
or achievement described in or implied by such statements.
Factors that may cause actual results to differ
materially from expected results described in forward-looking
statements include, but are not limited to: the potential
need to secure additional capital to implement Molycorp's business
plans, and Molycorp's ability to successfully secure any such
capital; Molycorp's ability to complete its planned capital
projects, such as its modernization and expansion efforts,
including the achievement of an initial annual production rate of
19,050 metric tons at the Mountain Pass rare earth mine and
processing facility, which we refer to as the Molycorp Mountain
Pass facility, and reach full planned production rates for REO and
other planned downstream products, in each case within the
projected time frame; the success of Molycorp's cost mitigation
efforts in connection with the modernization and expansion efforts
at the Molycorp Mountain Pass facility, which, if unsuccessful,
might cause its costs to exceed budget; the final costs of
Molycorp's planned capital projects, which may differ from
estimated costs; Molycorp's ability to successfully integrate Neo
Material Technologies, Inc. (now Molycorp Canada), with its
operations; Molycorp's ability to achieve fully the strategic and
financial objectives related to the acquisition of Molycorp Canada,
including the acquisition's impact on Molycorp's financial
condition and results of operations; unexpected costs or
liabilities that may arise from the acquisition, ownership or
operation of Molycorp Canada; risks and uncertainties associated
with intangible assets, including any future goodwill impairment
charges; market conditions, including prices and demand for
Molycorp's products; Molycorp's ability to control its working
capital needs; foreign exchange rate fluctuations; the development
and commercialization of new products; unexpected actions of
domestic and foreign governments; various events which could
disrupt operations, including natural events and other risks;
uncertainties associated with Molycorp's reserve estimates and
non-reserve deposit information, including estimated mine life and
annual production; uncertainties related to feasibility studies
that provide estimates of expected or anticipated costs,
expenditures and economic returns, REO prices, production costs and
other expenses for operations, which are subject to fluctuation;
uncertainties regarding global supply and demand for rare earths
materials; uncertainties regarding the results of Molycorp's
exploratory drilling programs; Molycorp's ability to enter into
additional definitive agreements with its customers and its ability
to maintain customer relationships; Molycorp's sintered
neodymium-iron-boron rare earth magnet joint venture's ability to
successfully manufacture magnets within its expected timeframe;
Molycorp's ability to successfully integrate other acquired
businesses; Molycorp's ability to maintain appropriate relations
with unions and employees; Molycorp's ability to successfully
implement its vertical integration strategy; environmental laws,
regulations and permits affecting Molycorp's business, directly and
indirectly, including, among others, those relating to mine
reclamation and restoration, climate change, emissions to the air
and water and human exposure to hazardous substances used, released
or disposed of by Molycorp; and uncertainties associated with
unanticipated geological conditions related to mining; and the
outcome of the stockholder class action litigation, derivative
litigation and the SEC investigation, including any actions taken
by government agencies in connection therewith.
For more information regarding these and other
risks and uncertainties that Molycorp may face, see the section
entitled "Risk Factors" of the Company's Annual Report on Form 10-K
for the year ended December 31, 2012 and of the Company's Quarterly
Reports on Form 10-Q. Any forward-looking statement contained in
this release or the Annual Report on Form 10-K or the Quarterly
Reports on Form 10-Q reflects Molycorp's current views with respect
to future events and is subject to these and other risks,
uncertainties and assumptions relating to Molycorp's operations,
operating results, growth strategy and liquidity. You should not
place undue reliance on these forward-looking statements because
such statements speak only as to the date when made. Molycorp
assumes no obligation to publicly update or revise these
forward-looking statements for any reason, or to update the reasons
actual results could differ materially from those anticipated in
these forward-looking statements, even if new information becomes
available in the future, except as otherwise required by applicable
law.
%20($MCP)&c1=1766085&c2=D=Referer)
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Molycorp, Inc. via Globenewswire
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