Greenwood Village,
CO (May 7,
2014) - Molycorp, Inc. (NYSE: MCP) ("Molycorp" or
the "Company") today announced financial and operating results for
the first quarter 2014.
The Company reported first quarter product sales
volume of 3,518 metric tons (mt), a 10% increase over the fourth
quarter 2013, at an average selling price ("ASP") of $33.69 per
kilogram. Net revenues for the first quarter were $118.5 million, a
4% decrease from the fourth quarter 2013.
The Company reported a net loss of $0.40 per share
for the quarter. The Company reported a net loss of $0.29 per share
for the quarter on an adjusted non-GAAP basis.
Molycorp's Resources segment, comprised of its
Mountain Pass, California rare earth mine and processing facility,
sold 988 mt of rare earth oxide ("REO") equivalent products for
$15.6 million in revenues. ASP for the quarter was $15.75/kg.
Production volume for the quarter was 1,111 mt.
The Company's Chemicals and Oxides segment sold
1,926 mt and reported $46.6 million in revenues. The increase in
volume was offset by lower ASP due to a product mix with less heavy
rare earth materials.
Its Magnetic Materials and Alloys segment sold
1,374 mt of magnetic powders. Revenues for the segment were $55.9
million on ASP of $40.71/kg.
Finally, Molycorp's Rare Metals segment reported
sales volume of 101 mt on revenues of $20.4 million. ASP for the
segment was $202.21/kg.
The Company reported that its production ramp-up
at Mountain Pass is continuing as are process optimization and
debottlenecking efforts that are helping to strengthen the system,
increase recoveries, and increase throughput.
FIRST QUARTER 2014
RESULTS
The Company reported consolidated net revenues of
$118.5 million, a 4% decrease over the fourth 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 magnetic powders,
and lower sales volumes in its Resources segment.
During the first quarter, the Company sold 3,518
mt of product at an ASP of $33.69 per kilogram, and generated a
gross loss of $23.1 million. This compares to sales volumes of
3,201 mt at an ASP of $36.68 per kilogram and a gross loss of $27.0
million during the fourth quarter of 2013. The Company produced
1,111 metric tons of rare earth oxides at its Mountain Pass
facility during the first quarter. 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 $88.9 million, or $0.40 per share. Adjusted loss
per share of $0.29 in the first quarter does not reflect
out-of-ordinary business expenses, and certain other non-cash
items.
The Company reported negative cash flows from
operating activities of $45.8 million during the first quarter, and
had $236.1 million in cash and cash equivalents as of March 31,
2014.
During the three months ended March 31, 2014,
Molycorp's capital expenditures were $29.8 million on a cash
basis.
CONFERENCE
CALL TOMORROW AT 9:00 A.M. EASTERN STANDARD TIME
Molycorp will conduct a conference call on
Thursday, May 8, 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) 515-2909 and reference passcode
number 38305260. Those calling from outside the U.S. should dial +1
(617) 399-5123 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, OIBDA and ADJUSTED OIBDA
Adjusted Net Loss excludes certain non-cash items
and other out-of-ordinary business expense and operational
expansion items. The Company defines OIBDA as operating income
before depreciation, amortization and accretion. Adjusted OIBDA
consists of OIBDA excluding certain non-cash items and other
out-of-ordinary business expense and operational expansion items.
Adjusted Net Loss, OIBDA and Adjusted OIBDA are all non-GAAP
financial measures. There have been no changes in the calculation
method of previously disclosed non-GAAP financial measures. The
Company's management believes adjusting out these items from Net
Loss and OIBDA, 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 that Adjusted Net Loss, OIBDA
and Adjusted OIBDA 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.
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands, except shares and per share amounts)
|
March 31, 2014 |
|
December 31, 2013 |
| ASSETS |
|
Current assets: |
|
|
|
|
|
| Cash and cash equivalents |
$ |
236,050 |
|
|
$ |
314,317 |
|
| Trade
accounts receivable, net |
51,591 |
|
|
61,757 |
|
| Inventory |
166,630 |
|
|
171,783 |
|
|
Prepaid expenses and other current assets |
34,854 |
|
|
29,210 |
|
| Total current assets |
489,125 |
|
|
577,067 |
|
|
Non-current assets: |
|
|
|
|
|
| Deposits |
26,005 |
|
|
25,997 |
|
|
Property, plant and equipment, net |
1,756,090 |
|
|
1,762,874 |
|
| Inventory |
24,996 |
|
|
25,329 |
|
|
Intangible assets, net |
324,964 |
|
|
330,867 |
|
| Investments |
47,152 |
|
|
48,875 |
|
|
Goodwill |
228,750 |
|
|
228,750 |
|
| Other non-current assets |
6,554 |
|
|
7,043 |
|
| Total
non-current assets |
2,414,511 |
|
|
2,429,735 |
|
| Total assets |
$ |
2,903,636 |
|
|
$ |
3,006,802 |
|
| LIABILITIES AND STOCKHOLDERS' EQUITY |
|
Current liabilities: |
|
|
|
|
|
| Trade accounts payable |
$ |
63,670 |
|
|
$ |
84,449 |
|
|
Accrued expenses |
55,426 |
|
|
48,501 |
|
| Debt and capital lease obligations |
16,885 |
|
|
16,362 |
|
| Other
current liabilities |
3,582 |
|
|
4,063 |
|
| Total current liabilities |
139,563 |
|
|
153,375 |
|
|
Non-current liabilities: |
|
|
|
|
|
| Asset retirement obligation |
16,218 |
|
|
16,966 |
|
|
Deferred tax liabilities |
79,284 |
|
|
85,481 |
|
| Debt and capital lease obligations |
1,371,924 |
|
|
1,363,916 |
|
| Other
non-current liabilities |
9,850 |
|
|
10,002 |
|
| Total non-current liabilities |
1,477,276 |
|
|
1,476,365 |
|
|
Total liabilities |
$ |
1,616,839 |
|
|
$ |
1,629,740 |
|
| Commitments and contingencies |
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
| Common stock, $0.001 par value; 350,000,000 shares
authorized at March 31, 2014 and December 31, 2013 |
245 |
|
|
241 |
|
|
Preferred stock, $0.001 par value; 5,000,000 shares authorized at
December 31, 2013 |
- |
|
|
2 |
|
| Additional paid-in capital |
2,191,404 |
|
|
2,194,405 |
|
|
Accumulated other comprehensive loss |
(7,303 |
) |
|
(6,451 |
) |
| Accumulated deficit |
(926,535 |
) |
|
(840,474 |
) |
| Total
Molycorp stockholders' equity |
1,257,811 |
|
|
1,347,723 |
|
| Noncontrolling interests |
28,986 |
|
|
29,339 |
|
| Total
stockholders' equity |
1,286,797 |
|
|
1,377,062 |
|
| Total liabilities and
stockholders' equity |
$ |
2,903,636 |
|
|
$ |
3,006,802 |
|
TABLE 2:
INCOME STATEMENTS AND EARNINGS PER SHARE
MOLYCORP,
INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except shares and per share amounts)
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
|
2014 |
|
|
2013 |
|
|
2013 |
|
| Revenues |
$ |
118,526 |
|
|
$ |
123,814 |
|
|
$ |
145,398 |
|
| Costs
of sales: |
|
|
|
|
|
|
|
|
| Costs excluding depreciation and amortization |
(125,473 |
) |
|
(132,419 |
) |
|
(135,531 |
) |
|
Depreciation and amortization |
(16,147 |
) |
|
(18,444 |
) |
|
(14,172 |
) |
| Gross loss |
(23,094 |
) |
|
(27,049 |
) |
|
(4,305 |
) |
|
Operating expenses: |
|
|
|
|
|
|
|
|
| Selling, general and administrative |
(17,956 |
) |
|
(30,714 |
) |
|
(26,551 |
) |
|
Depreciation, amortization and accretion |
(7,201 |
) |
|
(11,764 |
) |
|
(8,210 |
) |
| Research and development |
(2,766 |
) |
|
(4,696 |
) |
|
(6,405 |
) |
|
Impairment of goodwill and other long-lived assets |
- |
|
|
(119,403 |
) |
|
- |
|
| Operating loss |
(51,017 |
) |
|
(193,626 |
) |
|
(45,471 |
) |
| Other
expenses: |
|
|
|
|
|
|
|
|
| Other expense (a) |
474 |
|
|
(11,326 |
) |
|
(451 |
) |
|
Interest expense, net of capitalized interest |
(35,639 |
) |
|
(24,877 |
) |
|
(11,649 |
) |
| Loss before income taxes and equity earnings |
(86,182 |
) |
|
(229,829 |
) |
|
(57,571 |
) |
| Income
tax benefit |
1,907 |
|
|
32,021 |
|
|
22,490 |
|
| Equity in loss of affiliates |
(1,723 |
) |
|
(480 |
) |
|
(3,072 |
) |
| Net
loss |
(85,998 |
) |
|
(198,288 |
) |
|
(38,153 |
) |
| Net income attributable to noncontrolling
interests |
(63 |
) |
|
3,980 |
|
|
(818 |
) |
| Net
loss attributable to Molycorp stockholders |
$ |
(86,061 |
) |
|
$ |
(194,308 |
) |
|
$ |
(38,971 |
) |
|
|
|
|
|
|
|
|
|
|
Earnings per share of common stock: |
|
|
|
|
|
|
|
|
| Net loss attributable to Molycorp stockholders |
$ |
(86,061 |
) |
|
$ |
(194,308 |
) |
|
$ |
(38,971 |
) |
|
Dividends on Convertible Preferred Stock |
(2,846 |
) |
|
(2,846 |
) |
|
(2,846 |
) |
| Loss attributable to common stockholders |
$ |
(88,907 |
) |
|
$ |
(197,154 |
) |
|
$ |
(41,817 |
) |
|
|
|
|
|
|
|
|
|
| Weighted average common shares
outstanding-basic |
221,374,589 |
|
|
208,080,170 |
|
|
153,314,081 |
|
| Basic
loss per share: |
$ |
(0.40 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.27 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding-diluted |
221,374,589 |
|
|
208,080,170 |
|
|
153,314,081 |
|
| Diluted loss per share: |
$ |
(0.40 |
) |
|
$ |
(0.95 |
) |
|
$ |
(0.27 |
) |
| (a) Includes net results from discontinued operations.,
which were nominal in the first quarter of 2014 and 2013, and
$1,237 in the fourth quarter of 2013. |
TABLE 3:
STATEMENTS OF CASH FLOWS
MOLYCORP,
INC
Consolidated Statements of Cash Flows (Unaudited)
(In thousands)
|
Three Months Ended March
31, |
|
2014 |
|
|
2013 |
|
| Cash
flows from operating activities: |
|
|
|
|
|
| Net loss |
$ |
(85,998 |
) |
|
$ |
(38,153 |
) |
|
Adjustments to reconcile net loss to net cash from operating
activities: |
|
|
|
|
|
| Depreciation, amortization and accretion |
23,348 |
|
|
22,532 |
|
|
Deferred income tax benefit |
(6,097 |
) |
|
(29,475 |
) |
| Inventory write-downs |
17,371 |
|
|
22,125 |
|
|
Release of inventory step-up value |
577 |
|
|
2,497 |
|
| Stock-based compensation |
822 |
|
|
(325 |
) |
|
Foreign exchange loss |
4 |
|
|
2,197 |
|
| Equity in results of affiliates |
1,723 |
|
|
3,072 |
|
| Other
operating adjustments |
250 |
|
|
(5,221 |
) |
| Net change in operating assets and liabilities |
2,215 |
|
|
(15,877 |
) |
| Net
cash used in operating activities |
(45,785 |
) |
|
(36,628 |
) |
| Cash flows from investing activities: |
|
|
|
|
|
|
Investment in joint ventures |
- |
|
|
(3,423 |
) |
| Capital expenditures |
(29,752 |
) |
|
(181,103 |
) |
| Other
investing activities |
493 |
|
|
(90 |
) |
| Net cash used in investing activities |
(29,259 |
) |
|
(184,616 |
) |
| Cash
flows from financing activities: |
|
|
|
|
|
| Repayments of debt |
(489 |
) |
|
(11,108 |
) |
| Net
proceeds from sale of common stock |
- |
|
|
248,147 |
|
| Issuance of 5.50% Convertible Notes |
- |
|
|
165,600 |
|
|
Payments of preferred dividends |
(2,846 |
) |
|
(2,846 |
) |
| Dividend paid to noncontrolling interests |
(435 |
) |
|
(1,286 |
) |
| Other
financing activities |
1,323 |
|
|
(79 |
) |
| Net cash (used in) provided by financing
activities |
(2,447 |
) |
|
398,428 |
|
| Effect
of exchange rate changes on cash |
(776 |
) |
|
(140 |
) |
| Net change in cash and cash equivalents |
(78,267 |
) |
|
177,044 |
|
| Cash
and cash equivalents at beginning of the period |
314,317 |
|
|
227,790 |
|
| Cash and cash equivalents at end of period |
$ |
236,050 |
|
|
$ |
404,834 |
|
TABLE 4:
SEGMENT INFORMATION
| Three months ended March 31,
2014 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other
(a) |
|
Eliminations(b) |
|
Total Molycorp, Inc. |
|
(In
thousands) |
|
Revenues: |
|
| External |
$ |
3,111 |
|
|
$ |
40,271 |
|
|
$ |
54,720 |
|
|
$ |
20,424 |
|
|
|
|
|
$ |
- |
|
|
$ |
118,526 |
|
|
Inter-segment |
12,453 |
|
|
6,285 |
|
|
1,218 |
|
|
- |
|
|
|
|
|
(19,956 |
) |
|
- |
|
| Total revenues |
$ |
15,564 |
|
|
$ |
46,556 |
|
|
$ |
55,938 |
|
|
$ |
20,424 |
|
|
|
|
|
$ |
(19,956 |
) |
|
$ |
118,526 |
|
|
OIBDA |
$ |
(36,445 |
) |
|
$ |
3,299 |
|
|
$ |
13,676 |
|
|
$ |
(70 |
) |
|
|
|
|
|
|
|
|
|
| Depreciation, amortization and accretion |
(13,091 |
) |
|
(3,872 |
) |
|
(4,237 |
) |
|
(2,093 |
) |
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
$ |
(49,536 |
) |
|
$ |
(573 |
) |
|
$ |
9,439 |
|
|
$ |
(2,163 |
) |
|
$ |
(7,109 |
) |
|
$ |
(1,075 |
) |
|
$ |
(51,017 |
) |
| Other income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
474 |
|
|
Interest expense, net of capitalized interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35,639 |
) |
| Loss before income taxes and equity earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(86,182 |
) |
| Three months ended December 31,
2013 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other
(a) |
|
Eliminations(b) |
|
Total Molycorp, Inc. |
|
(In
thousands) |
|
Revenues: |
|
| External |
$ |
3,386 |
|
|
$ |
46,635 |
|
|
$ |
59,296 |
|
|
$ |
14,497 |
|
|
|
|
|
$ |
- |
|
|
$ |
123,814 |
|
|
Inter-segment |
7,872 |
|
|
8,780 |
|
|
- |
|
|
- |
|
|
|
|
|
(16,652 |
) |
|
- |
|
| Total revenues |
$ |
11,258 |
|
|
$ |
55,415 |
|
|
$ |
59,296 |
|
|
$ |
14,497 |
|
|
|
|
|
$ |
(16,652 |
) |
|
$ |
123,814 |
|
|
OIBDA |
$ |
(72,865 |
) |
|
$ |
(62,343 |
) |
|
$ |
2,076 |
|
|
$ |
(16,686 |
) |
|
|
|
|
|
|
|
|
|
| Depreciation, amortization and accretion |
(14,782 |
) |
|
(5,667 |
) |
|
(7,452 |
) |
|
(2,250 |
) |
|
|
|
|
|
|
|
|
|
|
Operating loss |
$ |
(87,647 |
) |
|
$ |
(68,010 |
) |
|
$ |
(5,376 |
) |
|
$ |
(18,936 |
) |
|
$ |
(13,805 |
) |
|
$ |
148 |
|
|
$ |
(193,626 |
) |
| Other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,326 |
) |
|
Interest expense, net of capitalized interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(24,877 |
) |
| Loss before income taxes and equity earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(229,829 |
) |
| Three months ended March 31,
2013 |
Resources |
|
Chemicals and Oxides |
|
Magnetic Materials and
Alloys |
|
Rare Metals |
|
Corporate and other
(a) |
|
Eliminations(b) |
|
Total Molycorp, Inc. |
|
(In
thousands) |
|
Revenues: |
|
| External |
$ |
14,658 |
|
|
$ |
49,600 |
|
|
$ |
54,678 |
|
|
$ |
26,462 |
|
|
|
|
|
$ |
- |
|
|
$ |
145,398 |
|
|
Inter-segment |
2,645 |
|
|
14,610 |
|
|
- |
|
|
- |
|
|
|
|
|
(17,255 |
) |
|
- |
|
| Total revenues |
$ |
17,303 |
|
|
$ |
64,210 |
|
|
$ |
54,678 |
|
|
$ |
26,462 |
|
|
|
|
|
$ |
(17,255 |
) |
|
$ |
145,398 |
|
|
OIBDA |
$ |
(31,073 |
) |
|
$ |
2,231 |
|
|
$ |
12,243 |
|
|
$ |
5,553 |
|
|
|
|
|
|
|
|
|
|
| Depreciation, amortization and accretion |
(9,053 |
) |
|
(5,537 |
) |
|
(5,480 |
) |
|
(2,253 |
) |
|
|
|
|
|
|
|
|
|
|
Operating (loss) income |
$ |
(40,126 |
) |
|
$ |
(3,306 |
) |
|
$ |
6,763 |
|
|
$ |
3,300 |
|
|
$ |
(11,564 |
) |
|
$ |
(538 |
) |
|
$ |
(45,471 |
) |
| Other expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(451 |
) |
|
Interest expense, net of capitalized interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(11,649 |
) |
| Loss before income taxes and equity earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(57,571 |
) |
-
Includes business development costs, personnel
costs, stock-based compensation, accounting and legal fees,
occupancy expense, information technology costs and interest
expense.
-
Consist of inter-segment sales and gross profits
elimination as well as eliminations of lower of cost or market
adjustments related to inter-segment inventory.
TABLE 5: PRODUCT REVENUES, VOLUMES, ASP
|
First Quarter |
|
Fourth Quarter |
|
First Quarter |
| Revenues (in
thousands) |
2014 |
|
|
2013 |
|
|
2013 |
|
| Resources (1) |
$ |
15,564 |
|
|
$ |
11,258 |
|
|
$ |
17,303 |
|
|
Chemicals and Oxides (2) |
46,556 |
|
|
55,415 |
|
|
64,210 |
|
| Magnetic Materials and Alloys (3) |
55,938 |
|
|
59,296 |
|
|
54,678 |
|
| Rare
Metals (4) |
20,424 |
|
|
14,497 |
|
|
26,462 |
|
| Inter-segment eliminations |
(19,956 |
) |
|
(16,652 |
) |
|
(17,255 |
) |
| Total
Net Revenues |
$ |
118,526 |
|
|
$ |
123,814 |
|
|
$ |
145,398 |
|
| Volumes (in metric
tons) |
|
|
|
|
|
|
|
|
| Resources |
988 |
|
|
1,034 |
|
|
763 |
|
|
Chemicals and Oxides |
1,926 |
|
|
1,760 |
|
|
1,866 |
|
| Magnetic Materials and Alloys |
1,374 |
|
|
1,353 |
|
|
1,263 |
|
| Rare
Metals |
101 |
|
|
58 |
|
|
81 |
|
| Inter-segment eliminations |
(871 |
) |
|
(1,004 |
) |
|
(699 |
) |
| ASP per kilogram |
|
|
|
|
|
|
|
|
| Resources |
$ |
15.75 |
|
|
$ |
10.89 |
|
|
$ |
22.68 |
|
|
Chemicals and Oxides |
$ |
24.17 |
|
|
$ |
31.48 |
|
|
$ |
34.41 |
|
| Magnetic Materials and Alloys |
$ |
40.71 |
|
|
$ |
43.82 |
|
|
$ |
43.29 |
|
| Rare
Metals |
$ |
202.21 |
|
|
$ |
249.93 |
|
|
$ |
326.69 |
|
|
|
|
|
|
|
|
|
|
| 1. The Resources segment includes operations at our Molycorp
Mountain Pass facility where we conduct rare earth minerals
extraction and processing 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,
terbium, dysprosium and others; and a line of proprietary rare
earth-based water treatment products, including SorbX® and
PhosFIX(TM). |
2. The
Chemicals and Oxides division includes: production of rare earths
at our operations at Molycorp Silmet; separated heavy rare
earth oxides 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 earths 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
in Tolleson, Arizona. Neo Powders(TM) are used in the production of
high performance, bonded NdFeB permanent magnets, which are found
in micro-motors, precision motors, sensors, and other applications
requiring high levels of magnetic strength, flexibility, small
size, reduced weight, and energy efficient performance.
|
| 4. The
Rare Metals segment produces, reclaims, refines and markets high
value niche metals and their compounds that include gallium,
indium, rhenium, tantalum, and niobium. Operations in this segment
are distributed in several locations: Quapaw, Oklahoma; Blanding,
Utah; Peterborough, Ontario, Canada; Sagard, Germany; Stade,
Germany; Hyeongok Industrial Zone in South Korea; and Sillamäe,
Estonia. Applications from products made in this segment include
wireless technologies, LEDs, flat panel displays, turbines, solar
power catalysts, steel additives, electronics applications, and
many others. |
TABLE 6: NON-GAAP ADJUSTED NET LOSS, OIBDA and ADJUSTED
OIBDA RECONCILIATION
(In thousands, except shares and per share data)
|
Adjusted Net
Loss |
|
|
|
|
|
|
|
|
|
First Quarter |
|
Fourth Quarter |
|
First
Quarter |
|
2014 |
|
|
2013 |
|
|
2013 |
|
| Net loss attributable to Molycorp stockholders |
$ |
(86,061 |
) |
|
$ |
(194,308 |
) |
|
$ |
(38,971 |
) |
|
Certain non-cash and other items: |
|
|
|
|
|
|
|
|
| Stock-based compensation |
822 |
|
|
2,993 |
|
|
(325 |
) |
|
Inventory write-downs |
15,693 |
|
|
16,816 |
|
|
19,205 |
|
| Impact of purchase accounting on cost
of inventory sold |
577 |
|
|
(1,376 |
) |
|
2,497 |
|
|
Impairment of goodwill, long-lived asset and
intangibles |
- |
|
|
119,717 |
|
|
- |
|
| Investment write-downs |
- |
|
|
9,414 |
|
|
- |
|
|
Out-of-ordinary items: |
|
|
|
|
|
|
|
|
| Water removal |
8,102 |
|
|
5,385 |
|
|
3,734 |
|
| Income
tax effect of above adjustments |
(160 |
) |
|
(15,065 |
) |
|
(9,793 |
) |
| Adjusted net loss |
(61,027 |
) |
|
(56,424 |
) |
|
(23,653 |
) |
|
Dividends on Convertible Preferred Stock |
(2,846 |
) |
|
(2,846 |
) |
|
(2,846 |
) |
| Adjusted net loss attributed to common
stockholders |
$ |
(63,873 |
) |
|
$ |
(59,270 |
) |
|
$ |
(26,499 |
) |
|
Weighted average common shares outstanding |
221,374,589 |
|
|
208,080,170 |
|
|
153,314,081 |
|
| Adjusted net loss per share |
$ |
(0.29 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.17 |
) |
|
OIBDA and Adjusted
OIBDA |
|
|
|
|
|
|
|
|
|
First Quarter |
|
Fourth Quarter |
|
First
Quarter |
| Consolidated |
2014 |
|
|
2013 |
|
|
2013 |
|
| Operating loss |
$ |
(51,017 |
) |
|
$ |
(193,626 |
) |
|
$ |
(45,471 |
) |
|
Depreciation and amortization included in costs of sales |
16,147 |
|
|
18,444 |
|
|
14,172 |
|
| Depreciation, amortization and accretion |
7,201 |
|
|
11,764 |
|
|
8,210 |
|
|
OIBDA |
(27,669 |
) |
|
(163,418 |
) |
|
(23,089 |
) |
|
|
|
|
|
|
|
|
|
| Adjusted OIBDA by
Segment |
|
|
|
|
|
|
|
|
| Resources |
|
|
|
|
|
|
|
|
|
OIBDA |
$ |
(36,445 |
) |
|
$ |
(72,865 |
) |
|
$ |
(31,073 |
) |
| Stock-based compensation |
234 |
|
|
306 |
|
|
(33 |
) |
|
Inventory write-downs |
15,693 |
|
|
16,816 |
|
|
19,205 |
|
| Impairment of goodwill, long-lived asset and
intangibles |
- |
|
|
30,421 |
|
|
- |
|
|
Investment write-downs |
- |
|
|
8,000 |
|
|
- |
|
| Water removal |
8,102 |
|
|
5,385 |
|
|
3,734 |
|
|
Adjusted OIBDA - Resources |
$ |
(12,416 |
) |
|
$ |
(11,937 |
) |
|
$ |
(8,167 |
) |
| Chemicals and
Oxides |
|
|
|
|
|
|
|
|
|
OIBDA |
$ |
3,299 |
|
|
$ |
(62,343 |
) |
|
$ |
2,231 |
|
| Stock-based compensation |
193 |
|
|
172 |
|
|
(19 |
) |
| Impact
of purchase accounting on cost of inventory sold |
25 |
|
|
(1,991 |
) |
|
2,015 |
|
| Impairment of goodwill, long-lived asset and
intangibles |
- |
|
|
67,247 |
|
|
- |
|
|
Adjusted OIBDA - Chemicals and
Oxides |
$ |
3,517 |
|
|
$ |
3,085 |
|
|
$ |
4,227 |
|
| Magnetic Materials and
Alloys |
|
|
|
|
|
|
|
|
|
OIBDA |
13,676 |
|
|
2,076 |
|
|
12,243 |
|
| Stock-based compensation |
144 |
|
|
182 |
|
|
(20 |
) |
| Impact
of purchase accounting on cost of inventory sold |
(45 |
) |
|
6 |
|
|
(63 |
) |
| Impairment of goodwill, long-lived asset and
intangibles |
- |
|
|
10,207 |
|
|
- |
|
|
Adjusted OIBDA - Magnetic Materials and
Alloys |
$ |
13,775 |
|
|
$ |
12,471 |
|
|
$ |
12,160 |
|
| Rare Metals |
|
|
|
|
|
|
|
|
|
OIBDA |
(70 |
) |
|
(16,686 |
) |
|
5,553 |
|
| Stock-based compensation |
22 |
|
|
26 |
|
|
(3 |
) |
| Impact
of purchase accounting on cost of inventory sold |
598 |
|
|
609 |
|
|
545 |
|
| Impairment of goodwill, long-lived asset and
intangibles |
- |
|
|
11,842 |
|
|
- |
|
|
Investment write-downs |
- |
|
|
1,414 |
|
|
- |
|
| Adjusted OIBDA - Rare
Metals |
550 |
|
|
(2,795 |
) |
|
6,095 |
|
|
Corporate and other |
(6,823 |
) |
|
(11,441 |
) |
|
(11,756 |
) |
| Eliminations |
(1,075 |
) |
|
148 |
|
|
(538 |
) |
|
Adjusted OIBDA - Consolidated |
$ |
(2,472 |
) |
|
$ |
(10,469 |
) |
|
$ |
2,021 |
|
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 26 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® 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 optimize production at its Mountain
Pass rare earth mine and processing facility, which we refer to as
the Molycorp Mountain Pass facility, and the ability to develop
internal and external demand for REO and other downstream products,
including the ability to operate at commercial production rates and
competitive cash production costs, in each case within the
projected time frame; the success of Molycorp's cost mitigation
efforts in connection with the optimization of 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 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 current stockholder class
action litigation and derivative litigation, 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, 2013 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.
%20Reports%20First%20Quarter%202014%20Financial%20Results&c1=1783527&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
HUG#1783527
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