PHILADELPHIA, Aug. 6, 2020 /PRNewswire/ -- Livent
Corporation (NYSE: LTHM) today reported results for the second
quarter of 2020.
Second quarter 2020 revenue was $64.9
million, with a reported GAAP net loss of $0.2 million, or breakeven on a per diluted share
basis. Adjusted EBITDA was $6.4
million and adjusted earnings per share were also breakeven.
Second quarter results reflected the continuation of difficult
market conditions for both Livent and the lithium industry as a
whole, exacerbated by COVID-19 related supply chain disruptions and
related customer order delays.
All Livent production facilities are operational and have been
operating without material disruptions. In Argentina, the Company has been operating
without incident since resuming activities in early April following
the mandatory government decree to halt production. However, we are
closely monitoring the situation in Argentina as COVID-19 cases have recently
increased in the country, including in the province of Catamarca
where we operate. We continue to work closely with provincial and
federal officials to provide a safe working environment for our
employees and the local communities.
On June
23rd Livent announced the pricing of its
Green Convertible Senior Notes due 2025, with total gross proceeds
of $246 million. Livent was one of
the first US companies to tap into this green financing option. The
green notes enhance the Company's liquidity while also showcasing
its unique sustainability profile and role as an enabler of green
transport and electrification growth.
"Lithium demand was very weak in the second quarter,
particularly in electric vehicle applications, as COVID-19 caused
serious disruption and uncertainty throughout supply chains," said
Paul Graves, president and chief
executive officer of Livent. "While our other end-markets fared
better, they also were impacted by the broader macroeconomic
weakness caused by the pandemic. Amid the uncertainty, we had
certain customers delay planned orders until later in the year.
During this time Livent took action to significantly enhance
liquidity, successfully issuing a green convertible bond and
highlighting our ESG credentials with both investors and
customers."
Sustainability has become a steadily increasing focus among
customers. During the second quarter, Livent released its first
Sustainability Report as a fully independent company. Most notably,
the Company exceeded or nearly reached its 2025 targets for 20
percent reductions in GHG emissions, energy, water and waste
intensities, previously set when Livent was a business segment of
FMC Corporation, a full five years ahead of schedule. Livent views
sustainability as central to its mission and fundamental to all
investment decisions. The full report can be found on our website:
livent.com/sustainability.
Market Outlook
Livent expects near-term demand to continue to be challenged by
weakness in key global markets. Market visibility remains limited
in light of economic concerns related to the COVID-19 pandemic, and
as a result Livent will not be providing updated financial guidance
at this time.
Longer term, Livent continues to expect significant electric
vehicle demand growth. Major OEMs are making stronger commitments
to their EV platforms, and consumer demand, while currently
impacted by COVID-19, shows a growing preference for electric
vehicles, leading to higher market penetration rates. Governments
around the globe continue to put policies, regulations and
incentives in place to support and accelerate this shift to
electrification.
On the supply side, COVID-19 restrictions have led to reduced
near-term supply growth, while sustained weakness in lithium
pricing has forced many developers and producers to defer or cancel
new projects and expansions. This is expected to create a shortage
of battery qualified lithium materials in the coming years.
"The transition to EVs continues despite COVID-19 related
delays, as long-term OEM, government and consumer interest
continues to grow. We believe Livent is well positioned to navigate
short-term industry weakness and is prepared to react to a return
of more normalized demand growth. Our core advantages – the
low-cost and sustainable nature of our operations, our partnerships
with leading battery producers and OEMs, and our continued
investment in developing next generation engineered lithium
products – position us to be a prime beneficiary of future
improvements in lithium market conditions," concluded Graves.
Supplemental Information
In this press release, Livent uses the financial measures
Adjusted EBITDA and adjusted earnings per diluted share.
These terms are not calculated in accordance with generally
accepted accounting principles (GAAP). Definitions of these
terms, as well as a reconciliation to the most directly comparable
financial measure calculated and presented in accordance with GAAP,
are provided on our website: ir.livent.com. Such
reconciliations are also set forth in the financial tables that
accompany this press release.
About Livent
For more than six decades, Livent has partnered with its
customers to safely and sustainably use lithium to power the world.
Livent is one of only a small number of companies with the
capability, reputation, and know-how to produce high-quality
finished lithium compounds that are helping meet the growing demand
for lithium. The company has one of the broadest product portfolios
in the industry, powering demand for green energy, modern mobility,
the mobile economy, and specialized innovations, including light
alloys and lubricants. Livent employs approximately 800 people
throughout the world and operates manufacturing sites in
the United States, England, India, China
and Argentina. For more
information, visit Livent.com.
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," "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 Livent, may include
projections of Livent's future financial performance, Livent's
anticipated growth strategies and anticipated trends in Livent's
business. These statements are only predictions based on Livent's
current expectations and projections about future events. There are
important factors that could cause Livent's actual results, level
of activity, performance or achievements to differ materially from
the results, level of activity, performance or achievements
expressed or implied by the forward-looking statements. Currently,
one of the most significant factors is the adverse effect of the
current coronavirus ("COVID-19") pandemic on our business. The
ultimate extent to which COVID-19 impacts us will depend on future
developments, which are highly uncertain and cannot be predicted
with confidence, including the scope, severity and duration of the
pandemic, the actions taken to contain the pandemic or mitigate its
impact, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Additional factors
that could cause Livent's actual results, level of activity,
performance or achievements to differ materially from the results,
level of activity, performance or achievements expressed or implied
by the forward-looking statements include a decline in the growth
in demand for electric vehicles; volatility in the price for
performance lithium compounds; adverse global economic conditions;
competition; quarterly and annual fluctuations of our operating
results; risks relating to Livent's planned production expansion
and related capital expenditures, including any temporary
suspension of our expansion efforts; the potential development and
adoption of battery technologies that do not rely on performance
lithium compounds as an input; liquidity and access to credit;
reduced customer demand, or delays in growth of customer demand,
for higher performance lithium compounds,; the success of Livent's
research and development efforts; risks inherent in international
operations and sales, including political, financial and
operational risks specific to Argentina, China and other countries where Livent has
active operations; customer concentration and the delay or loss of,
or significant reduction in orders from, large customers; failure
to satisfy customer quality standards; fluctuations in the price of
energy and certain raw materials; employee attraction and
retention; union relations; cybersecurity breaches; our ability to
protect our intellectual property rights; the lack of proven
reserves; legal and regulatory proceedings; including any
shareholder lawsuits; compliance with environmental, health and
safety laws; changes in tax laws; risks related to our separation
from FMC Corporation; risks related to ownership of our common
stock, including price fluctuations and lack of dividends; as well
as the other factors described under the caption entitled "Risk
Factors" in Livent's 2019 Form 10-K filed with the Securities and
Exchange Commission on February 28,
2020, our Current Report on Form 8-K filed with the
Securities and Exchange Commission on April
6, 2020 and our subsequent Forms 10-Q filed with the
Securities and Exchange Commission. Although Livent believes the
expectations reflected in the forward-looking statements are
reasonable, Livent cannot guarantee future results, level of
activity, performance or achievements. Moreover, neither Livent
nor any other person assumes responsibility for the accuracy and
completeness of any of these forward-looking statements. Livent is
under no duty to update any of these forward-looking statements
after the date of this news release to conform its prior statements
to actual results or revised expectations.
|
LIVENT
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
(Unaudited, in
millions, except per share data)
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Revenue
|
$
|
64.9
|
|
|
$
|
114.0
|
|
|
$
|
133.4
|
|
|
$
|
212.3
|
|
|
Costs of
sales
|
54.7
|
|
|
80.2
|
|
|
108.6
|
|
|
145.8
|
|
|
Gross
margin
|
10.2
|
|
|
33.8
|
|
|
24.8
|
|
|
66.5
|
|
|
Selling, general and
administrative expenses
|
10.3
|
|
|
9.8
|
|
|
21.1
|
|
|
19.0
|
|
|
Research and
development expenses
|
0.8
|
|
|
0.8
|
|
|
1.8
|
|
|
1.6
|
|
|
Restructuring and
other charges
|
0.9
|
|
|
3.8
|
|
|
5.7
|
|
|
3.9
|
|
|
Separation-related
costs
|
0.1
|
|
|
1.3
|
|
|
0.2
|
|
|
2.9
|
|
|
Total costs and
expenses
|
66.8
|
|
|
95.9
|
|
|
137.4
|
|
|
173.2
|
|
|
(Loss)/income from
operations before loss on debt extinguishment, equity in net loss
of unconsolidated affiliate and income taxes
|
(1.9)
|
|
|
18.1
|
|
|
(4.0)
|
|
|
39.1
|
|
|
Loss on debt
extinguishment
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Equity in net loss of
unconsolidated affiliate
|
0.2
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
(Loss)/income from
operations before income taxes
|
(2.2)
|
|
|
18.1
|
|
|
(4.4)
|
|
|
39.1
|
|
|
Income tax
(benefit)/expense
|
(2.0)
|
|
|
2.6
|
|
|
(2.3)
|
|
|
6.7
|
|
|
Net
(loss)/income
|
$
|
(0.2)
|
|
|
$
|
15.5
|
|
|
$
|
(2.1)
|
|
|
$
|
32.4
|
|
|
Net (loss)/income per
weighted average share - basic
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.22
|
|
|
Net (loss)/income per
weighted average share - diluted
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.22
|
|
|
Weighted average
common shares outstanding - basic
|
146.2
|
|
|
146.0
|
|
|
146.1
|
|
|
146.0
|
|
|
Weighted average
common shares outstanding - diluted
|
146.2
|
|
|
146.5
|
|
|
146.1
|
|
|
146.5
|
|
|
LIVENT
CORPORATION
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
RECONCILIATION OF
NET (LOSS)/INCOME (GAAP) TO ADJUSTED EBITDA
(NON-GAAP)
|
|
(Unaudited)
|
|
|
The table below
provides a reconciliation of Net (loss)/income to Adjusted
EBITDA.
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
June
30,
|
|
(In
Millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net (loss)/income
(GAAP)
|
$
|
(0.2)
|
|
|
$
|
15.5
|
|
|
$
|
(2.1)
|
|
|
$
|
32.4
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
Income tax
(benefit)/expense
|
(2.0)
|
|
|
2.6
|
|
|
(2.3)
|
|
|
6.7
|
|
|
Depreciation and
amortization
|
6.0
|
|
|
4.8
|
|
|
11.6
|
|
|
9.7
|
|
|
EBITDA (Non-GAAP)
(1)
|
$
|
3.8
|
|
|
$
|
22.9
|
|
|
$
|
7.2
|
|
|
$
|
48.8
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses/(gains) (a)
|
1.7
|
|
|
(0.1)
|
|
|
2.9
|
|
|
(0.2)
|
|
|
Restructuring and
other charges (b)
|
0.9
|
|
|
3.8
|
|
|
5.7
|
|
|
3.9
|
|
|
Separation-related
costs (c)
|
0.1
|
|
|
1.3
|
|
|
0.2
|
|
|
2.9
|
|
|
Loss on debt
extinguishment (d)
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Other loss
(e)
|
(0.2)
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
|
6.4
|
|
|
$
|
27.9
|
|
|
$
|
15.8
|
|
|
$
|
55.4
|
|
|
___________________
|
|
(1)
|
In addition to net
(loss)/income, as determined in accordance with U.S. GAAP, we
evaluate operating performance using certain non-GAAP measures such
as EBITDA, which we define as net (loss)/income plus interest
expense, net, income tax expense/(benefit), depreciation, and
amortization, and Adjusted EBITDA, which we define as EBITDA
adjusted for restructuring and other charges/(income),
separation-related costs and 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 (loss)/income or
other measures of performance or liquidity reported in accordance
with U.S. GAAP. The above table reconciles EBITDA and Adjusted
EBITDA from net (loss)/income.
|
|
(a)
|
Represents impact of
currency fluctuations on tax assets and liabilities and on
long-term monetary assets associated with our capital expansion.
The remeasurement gains/(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; and ii.) their association
with long-term capital projects which will not be operational until
future periods.
|
|
(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. Also includes legal fees related to IPO
securities litigation.
|
|
(c)
|
Represents legal,
professional, transaction related fees and other separation-related
activity.
|
|
(d)
|
Represents the
partial write off of deferred financing costs for the temporary
reduction in borrowing capacity related to the First Amendment
excluded from our calculation of Adjusted EBITDA because the loss
is nonrecurring.
|
|
(e)
|
Represents a portion
of our nonrefundable prepaid research and development costs
advanced to our unconsolidated affiliate in the fourth quarter 2019
and excluded from our calculation of Adjusted EBITDA in the same
period because the costs represent research and development
activities of the affiliate that had not occurred as of December
31, 2019. These costs were included with our calculation of
Adjusted EBITDA for the three and six months ended June 30, 2020
when the costs were incurred at our unconsolidated
affiliate.
|
|
RECONCILIATION OF
NET (LOSS)/INCOME (GAAP) TO
|
|
ADJUSTED AFTER-TAX
EARNINGS (NON-GAAP)
|
|
(Unaudited)
|
|
|
(In
Millions)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net (loss)/income
(GAAP)
|
$
|
(0.2)
|
|
|
$
|
15.5
|
|
|
$
|
(2.1)
|
|
|
$
|
32.4
|
|
|
Special
charges:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses/(gains) (a)
|
1.7
|
|
|
(0.1)
|
|
|
2.9
|
|
|
(0.2)
|
|
|
Restructuring and
other charges (b)
|
0.9
|
|
|
3.8
|
|
|
5.7
|
|
|
3.9
|
|
|
Separation-related
costs (c)
|
0.1
|
|
|
1.3
|
|
|
0.2
|
|
|
2.9
|
|
|
Loss on debt
extinguishment (d)
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
Other loss
(e)
|
(0.2)
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
Non-GAAP tax
adjustments (f)
|
(2.5)
|
|
|
(2.8)
|
|
|
(3.7)
|
|
|
(3.3)
|
|
|
Adjusted after-tax
earnings (Non-GAAP) (1)
|
$
|
(0.1)
|
|
|
$
|
17.7
|
|
|
$
|
2.8
|
|
|
$
|
35.7
|
|
|
|
|
|
|
|
|
|
|
Diluted
(loss)/earnings per common share (GAAP)
|
$
|
—
|
|
|
$
|
0.11
|
|
|
$
|
(0.01)
|
|
|
$
|
0.22
|
|
|
Special charges per
diluted share, before tax:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses, per diluted share
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
Restructuring and
other charges, per diluted share
|
0.01
|
|
|
0.03
|
|
|
0.04
|
|
|
0.03
|
|
|
Separation-related
costs, per diluted share
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
Non-GAAP tax
adjustments, per diluted share
|
(0.02)
|
|
|
(0.03)
|
|
|
(0.03)
|
|
|
(0.02)
|
|
|
Diluted adjusted
after-tax earnings per share (Non-GAAP)
(1)
|
$
|
—
|
|
|
$
|
0.12
|
|
|
$
|
0.02
|
|
|
$
|
0.25
|
|
|
Weighted average
common shares outstanding - diluted (GAAP) used in diluted adjusted
after-tax earnings per share computations
|
146.2
|
|
|
146.5
|
|
|
146.1
|
|
|
146.5
|
|
|
___________________
|
|
(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. As a result, diluted
adjusted after-tax earnings is calculated using an adjusted average
common shares outstanding (Non-GAAP).
|
|
(a)
|
Represents impact of
currency fluctuations on tax assets and liabilities and on
long-term monetary assets associated with our capital expansion.
The remeasurement gains/(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; and ii.) their association
with long-term capital projects which will not be operational until
future periods.
|
|
(b)
|
We continually
perform strategic reviews and assess the return on our business.
This sometimes results 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. Also includes
legal fees related to IPO securities litigation.
|
|
(c)
|
Represents legal,
professional, transaction related fees and other separation-related
activity.
|
|
(d)
|
Represents the
partial write off of deferred financing costs for the temporary
reduction in borrowing capacity related to the First Amendment
excluded from our calculation of Adjusted EBITDA because the loss
is nonrecurring.
|
|
(e)
|
Represents a portion
of our nonrefundable prepaid research and development costs
advanced to our unconsolidated affiliate in the fourth quarter 2019
and excluded from our calculation of Adjusted EBITDA in the same
period because the costs represent research and development
activities of the affiliate that had not occurred as of December
31, 2019. These costs were included with our calculation of
Adjusted EBITDA for the three and six months ended June 30, 2020
when the costs were incurred at our unconsolidated
affiliate.
|
|
(f)
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
(in
Millions)
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
|
Income tax benefit on
restructuring, separation-related and other corporate
costs
|
$
|
(0.2)
|
|
|
$
|
(1.1)
|
|
|
$
|
(1.3)
|
|
|
$
|
(1.5)
|
|
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
0.6
|
|
|
(0.7)
|
|
|
0.6
|
|
|
(1.2)
|
|
|
Foreign currency
remeasurement and other discrete items
|
(3.1)
|
|
|
(1.0)
|
|
|
(3.7)
|
|
|
(0.6)
|
|
|
Other discrete
items
|
0.2
|
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
Total Non-GAAP tax
adjustments
|
$
|
(2.5)
|
|
|
$
|
(2.8)
|
|
|
$
|
(3.7)
|
|
|
$
|
(3.3)
|
|
|
|
|
|
|
|
|
|
|
RECONCILIATION OF
CASH (REQUIRED)/PROVIDED BY OPERATING ACTIVITIES (GAAP)
TO
|
|
ADJUSTED CASH
PROVIDED BY OPERATIONS (NON-GAAP)
|
|
(Unaudited)
|
|
|
Six Months
Ended
|
|
June
30,
|
|
(In
Millions)
|
2020
|
|
2019
|
|
Cash
(required)/provided by operating activities (GAAP)
|
$
|
(0.3)
|
|
|
$
|
41.3
|
|
|
Restructuring and
other charges
|
3.9
|
|
|
1.9
|
|
|
Separation-related
activities (a)
|
0.4
|
|
|
24.0
|
|
|
Other loss
(b)
|
(0.6)
|
|
|
—
|
|
|
Adjusted cash
provided by operations (Non-GAAP) (1)
|
$
|
3.4
|
|
|
$
|
67.2
|
|
|
___________________
|
|
(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 required by operating activities allows
management and investors to compare more easily the cash flows from
period to period.
|
|
(a)
|
Represents
reimbursement to FMC for 2018 income taxes and transaction related
costs, pursuant to the Tax Matters Agreement, for which we accrued
liabilities at December 31, 2018. Also includes separation-related
costs.
|
|
(b)
|
Represents "Equity in
net loss of unconsolidated affiliate" and the portion of our
nonrefundable prepaid research and development costs advanced to
our unconsolidated affiliate in the fourth quarter of 2019 included
in "Cash required by investing activities" (GAAP) in our condensed
consolidated statement of cash flows but excluded from our
calculation "Adjusted cash provided by operations" in the same
period because the costs represented future research and
development expenditures related to our unconsolidated
affiliate.
|
|
RECONCILIATION OF
LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP)
TO
|
|
NET DEBT
(NON-GAAP)
|
|
(Unaudited)
|
|
|
(In
Millions)
|
June 30,
2020
|
|
December 31,
2019
|
|
Long-term debt (GAAP)
(a)
|
$
|
208.7
|
|
|
$
|
154.6
|
|
|
Less: Cash and cash
equivalents (GAAP)
|
(17.2)
|
|
|
(16.8)
|
|
|
Net debt
(Non-GAAP) (1)
|
$
|
191.5
|
|
|
$
|
137.8
|
|
|
___________________
|
|
(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 June 30, 2020
and December 31, 2019, the Company had no debt maturing within one
year.
|
|
LIVENT
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
(In
Millions)
|
June 30,
2020
|
|
December 31,
2019
|
|
Cash and cash
equivalents
|
$
|
17.2
|
|
|
$
|
16.8
|
|
|
Trade receivables,
net of allowance of $0.3 in 2020 and $0.3 in 2019
|
55.7
|
|
|
90.0
|
|
|
Inventories,
net
|
117.0
|
|
|
113.4
|
|
|
Prepaid and other
current assets
|
49.7
|
|
|
51.8
|
|
|
Total current
assets
|
239.6
|
|
|
272.0
|
|
|
Property, plant and
equipment, net of accumulated depreciation of $209.4 in 2020
and $202.2 in 2019
|
528.5
|
|
|
468.8
|
|
|
Investments
|
2.4
|
|
|
2.2
|
|
|
Right of use assets -
operating leases, net
|
16.5
|
|
|
16.9
|
|
|
Deferred income
taxes
|
—
|
|
|
1.5
|
|
|
Other
assets
|
99.1
|
|
|
91.5
|
|
|
Total
assets
|
$
|
886.1
|
|
|
$
|
852.9
|
|
|
|
|
|
|
Accounts payable,
trade and other
|
$
|
31.2
|
|
|
$
|
83.1
|
|
|
Accrued and other
current liabilities
|
37.6
|
|
|
38.5
|
|
|
Income
taxes
|
—
|
|
|
0.9
|
|
|
Total current
liabilities
|
68.8
|
|
|
122.5
|
|
|
Long-term debt, less
current portion
|
208.7
|
|
|
154.6
|
|
|
Operating lease
liabilities - long-term
|
14.7
|
|
|
15.4
|
|
|
Long-term
liabilities
|
22.7
|
|
|
16.4
|
|
|
Total
equity
|
571.2
|
|
|
544.0
|
|
|
Total liabilities
and equity
|
$
|
886.1
|
|
|
$
|
852.9
|
|
|
LIVENT
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
|
(In
Millions)
|
2020
|
|
2019
|
|
Cash
(required)/provided by operating activities
|
$
|
(0.3)
|
|
|
$
|
41.3
|
|
|
Cash required by
investing activities
|
(89.9)
|
|
|
(74.2)
|
|
|
Cash provided by
financing activities
|
90.9
|
|
|
25.0
|
|
|
Effect of exchange
rate changes on cash
|
(0.3)
|
|
|
(0.1)
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
0.4
|
|
|
(8.0)
|
|
|
Cash and cash
equivalents, beginning of year
|
16.8
|
|
|
28.3
|
|
|
Cash and cash
equivalents, end of period
|
$
|
17.2
|
|
|
$
|
20.3
|
|
Media Contact: Juan Carlos
Cruz +1.215.299.6170
Juan.Carlos.Cruz@livent.com
Investor Contact: Daniel
Rosen +1.215.299.6208
Daniel.Rosen@livent.com
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SOURCE Livent Corporation