CHARLOTTE, N.C., Feb. 17,
2021 /PRNewswire/ -- Albemarle Corporation (NYSE: ALB) today
announced its results for the fourth quarter and full year ended
December 31, 2020.
Fourth Quarter 2020 and Recent Highlights
(Unless
otherwise stated, all percent changes represent year-over-year
comparisons)
- Net income of $84.6 million, or
$0.79 per diluted share; Adjusted
diluted EPS of $1.17
- Net sales of $879 million, which
was at the high-end of previous outlook, a year-over-year decrease
of 11%
- Adjusted EBITDA of $221 million,
which exceeded the high-end of previous outlook, a year-over-year
decrease of 25%
- Our plants continue to operate without material impact from the
COVID-19 pandemic
- Approximately $80 million of
sustainable cost savings achieved in 2020
- Maintained our quarterly dividend of $0.385 per share, an increase of approximately 5%
over 2019
- Completed $1.5 billion
underwritten public equity offering to accelerate profitable
growth
"Albemarle reported another
solid quarter with Q4 2020 adjusted EBITDA exceeding outlook. This
performance is due to the hard work and diligence of our operating
teams who ran our businesses safely and efficiently throughout this
challenging year," said Albemarle CEO Kent
Masters. "As we continue to rebound from last year's
pandemic-related lows, we are accelerating high-return growth in
our Lithium and Bromine businesses and maintaining our focus on
operational discipline to drive cost and efficiency
improvements."
Outlook
Albemarle anticipates that
its full year 2021 operating performance will improve modestly
relative to full year 2020 assuming continued recovery following
reduced global economic activity due to the global pandemic.
|
FY 2021
Outlook
|
Net sales
|
$3.2 - $3.3
billion
|
Adjusted
EBITDA
|
$810 - $860
million
|
Adjusted EBITDA
Margin
|
25% - 26%
|
Adj. Diluted
EPS
|
$3.25 -
$3.65
|
Net Cash from
Operations
|
$475 - $575
million
|
Capital
Expenditures
|
$850 - $950
million
|
COVID-19 Response
Albemarle's cross-functional
Global Response Team continues to meet biweekly to assess the
situation and take necessary actions to address employee health and
safety and operational challenges. Our first priority is always the
health and well-being of our employees, customers, and communities.
Beyond that, our focus has shifted from managing an immediate
crisis to building in the flexibility needed to adjust for regional
differences and changing conditions. Protocols including restricted
travel, shift adjustments, increased hygiene, and social distancing
for the essential workers at our plants remain in place at all
locations.
Fourth Quarter Results
In millions,
except per share amounts
|
Q4
2020
|
|
Q4
2019
|
|
$
Change
|
|
%
Change
|
Net sales
|
$
|
879.1
|
|
|
$
|
992.6
|
|
|
$
|
(113.5)
|
|
|
(11.4)
|
%
|
Net income
attributable to Albemarle Corporation
|
$
|
84.6
|
|
|
$
|
90.4
|
|
|
$
|
(5.8)
|
|
|
(6.4)
|
%
|
Adjusted
EBITDA(a)
|
$
|
221.1
|
|
|
$
|
294.7
|
|
|
$
|
(73.6)
|
|
|
(25.0)
|
%
|
Diluted earnings per
share
|
$
|
0.79
|
|
|
$
|
0.85
|
|
|
$
|
(0.06)
|
|
|
(7.1)
|
%
|
Non-operating pension and OPEB items(a)
|
0.35
|
|
|
0.19
|
|
|
|
|
|
Non-recurring and other unusual items(a)
|
0.03
|
|
|
0.69
|
|
|
|
|
|
Adjusted diluted
earnings per share(b)
|
$
|
1.17
|
|
|
$
|
1.73
|
|
|
$
|
(0.56)
|
|
|
(32.4)
|
%
|
|
|
(a)
|
See Non-GAAP
Reconciliations for further details.
|
(b)
|
Totals may not add
due to rounding.
|
Net sales of $879.1 million
decreased by $113.5 million compared
to the prior year quarter, driven by lower results in the Catalysts
and Lithium business segments partially offset by improvement in
Bromine and other business segments as discussed below.
Adjusted EBITDA of $221.1 million
decreased by $73.6 million from the
prior year quarter due to lower net sales, which was offset by
productivity and cost improvements. Similarly, net income
attributable to Albemarle of
$84.6 million decreased by
$5.8 million from the prior year.
Corporate costs including SG&A were down compared to the prior
year period as a result of sustainable cost savings initiatives and
short-term austerity measures.
We have increased our sustainable cost savings and achieved
approximately $80 million of
sustainable savings in 2020. We expect these savings to reach a
run-rate of more than $120 million by
year-end 2021. We also took short-term cash management measures and
delayed capital expenditures. Short-term savings averaged
approximately $25 to $40 million per quarter in 2020. Some of the
expenses related to these short-term savings are expected to come
back later in 2021, for example assuming increased travel expenses
later in the year. Full-year 2020 capital spending was $850 million, in-line with the low-end of
previous outlook.
The effective income tax rate for Q4 2020 was (20.9)% compared
to (6.5)% in the same period in 2019. The difference is largely due
to a change in the geographic mix of earnings. Q4 2020 includes
discrete tax benefits for uncertain tax positions for statute of
limitation expirations, excess tax benefits realized from
stock-based compensation arrangements, and return to accrual
adjustments. Q4 2019 includes a $19
million tax benefit for uncertain tax positions primarily
related to seeking treaty relief from the competent authority to
prevent double taxation. On an adjusted basis, the effective income
tax rates were 12.8% and 18.4% for the fourth quarter of 2020 and
2019, respectively.
Cash Flow and Capital Deployment
Cash from operations for the year ended December 31, 2020,
of $798.9 million, increased
$79.5 million versus the prior year
as reduced working capital outflows, deferred tax payments as
allowed by various jurisdictions during the pandemic and cost
savings more than offset lower revenues. Capital expenditures of
$850.5 million were in-line with the
prior year as progress continued on our Lithium expansion
projects.
Our primary capital allocation priorities are to grow
profitably, fund our dividend, and maintain financial flexibility
and our investment grade credit rating.
In February 2021, we raised
$1.5 billion in an equity offering to
fund growth capital projects, focused on accelerating high return
growth projects in Lithium and Bromine. In the short-term, the use
of proceeds include funding growth capital expenditures, debt
repayment and other general corporate purposes.
Our share repurchase authorization remains in place; however,
there are no near-term plans to execute share buybacks. Divestiture
activity is proceeding despite on-going travel restrictions.
Balance Sheet and Liquidity
As of December 31, 2020, Albemarle had estimated liquidity of over
$2.1 billion, including $747 million of cash and equivalents,
$675 million remaining under our
$1 billion revolver, $500 million remaining under our delayed draw
term loan and $196 million on other
available credit lines. Total debt was $3.6
billion, representing net debt to adjusted EBITDA of
approximately 3.4 times.
Business Segment Results
Lithium
In
millions
|
Q4
2020
|
|
Q4
2019
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
358.6
|
|
|
$
|
411.1
|
|
|
$
|
(52.5)
|
|
|
(12.8)
|
%
|
Adjusted
EBITDA
|
$
|
122.1
|
|
|
$
|
140.1
|
|
|
$
|
(17.9)
|
|
|
(12.8)
|
%
|
Lithium net sales of $358.6
million declined $52.5 million
primarily due to lower contract and market pricing. Lower contract
pricing reflects 2020 battery-grade price adjustments that were
agreed to in late 2019. Adjusted EBITDA of $122.1 million declined by $17.9 million primarily due to reduced net sales.
Stronger volumes, as customers held to contractual commitments,
partially offset price declines.
Current Trends: We anticipate FY 2021 volumes to be
higher due to North American restarts and efficiency improvements.
We expect mechanical completion of our La Negra and Kemerton
expansion projects in 2021 and expect to see increased sales
volumes from these projects beginning in 2022. We expect FY 2021
pricing to be down slightly, primarily due to anticipated lower
average realized pricing for carbonate and technical grade
products. Longer-term, we expect lithium demand to grow in line
with greater EV adoption. We are accelerating our lithium growth
projects to capitalize on this trend and generate strong investment
returns.
Bromine Specialties
In
millions
|
Q4
2020
|
|
Q4
2019
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
263.4
|
|
|
$
|
243.5
|
|
|
$
|
19.9
|
|
|
8.2
|
%
|
Adjusted
EBITDA
|
$
|
87.9
|
|
|
$
|
79.7
|
|
|
$
|
8.1
|
|
|
10.2
|
%
|
Bromine net sales of $263.4
million increased $19.9
million primarily due to a rebound in demand following the
recent economic downturn related to the COVID-19 pandemic. Adjusted
EBITDA of $87.9 million increased
$8.1 million due to higher net sales
volume and pricing, partially offset by higher input costs related
to the higher sales volume.
Current Trends: We expect FY 2021 results to improve
modestly year-over-year assuming continued economic recovery
following the pandemic. Further recovery and positive long-term
trends in electronics and automotive end markets are expected to
continue to drive demand across our product portfolio.
Catalysts
In
millions
|
Q4
2020
|
|
Q4
2019
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
195.7
|
|
|
$
|
282.5
|
|
|
$
|
(86.8)
|
|
|
(30.7)
|
%
|
Adjusted
EBITDA
|
$
|
22.1
|
|
|
$
|
76.7
|
|
|
$
|
(54.7)
|
|
|
(71.3)
|
%
|
Catalysts net sales of $195.7
million declined $86.8 million
due primarily to lower volumes. Fluid Catalytic Cracking (FCC)
volume improved sequentially, but remains below prior year due to
lower transportation fuel consumption as a result of travel
restrictions. Lower Hydroprocessing Catalysts (HPC) volume reflects
normal lumpiness of shipments and reduced fuel demand. Adjusted
EBITDA of $22.1 million declined
$54.7 million as a result of lower
net sales offset by cost savings initiatives and efficiency
improvements.
Current Trends: We expect total Catalysts to be
flat year-over-year, with PCS improving from 2020 levels. We expect
lower year-over-year refining catalysts volumes resulting from a
recent change in customer order patterns in North America, with Q1 expected to be the
strongest quarter of the year. Strategically, we continue to
position the Catalysts business to take advantage of growth in
emerging markets, renewable fuels, and crude-to-chemicals.
All Other
In
millions
|
Q4
2020
|
|
Q4
2019
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
61.4
|
|
|
$
|
55.4
|
|
|
$
|
6.0
|
|
|
10.8
|
%
|
Adjusted
EBITDA
|
$
|
18.4
|
|
|
$
|
20.7
|
|
|
$
|
(2.3)
|
|
|
(11.0)
|
%
|
Other operations represent our Fine Chemistry Services (FCS)
business. FCS net sales of $61.4
million increased $6.0 million
and adjusted EBITDA of $18.4 million
decreased $2.3 million. The FCS
business tends to be contract driven. Recent contracts include life
sciences products, which are typically anti-cyclical.
Earnings Call
Date:
|
Thursday, Feb. 18,
2020
|
Time:
|
9:00 AM Eastern
time
|
Dial-in
(U.S.):
|
844-347-1034
|
Dial-in
(International):
|
209-905-5910
|
Passcode:
|
6989169
|
The Company's earnings presentation and supporting material is
available on Albemarle's website
at https://investors.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB), headquartered in Charlotte, N.C., is a global specialty
chemicals company with leading positions in lithium, bromine and
refining catalysts. We think beyond business-as-usual to power the
potential of companies in many of the world's largest and most
critical industries, such as energy, electronics, and
transportation. We actively pursue a sustainable approach to
managing our diverse global footprint of world-class resources. In
conjunction with our highly experienced and talented global teams,
our deep-seated values, and our collaborative customer
relationships, we create value-added and performance-based
solutions that enable a safer and more sustainable future.
We regularly post information to www.albemarle.com, including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, its businesses and the
markets it serves.
Forward-Looking Statements
Some of the information presented in this press release, the
conference call and discussions that follow, including, without
limitation, information related to product development, production
capacity, committed volumes, market trends, pricing, expected
growth, earnings and demand for our products, input costs,
surcharges, tax rates, stock repurchases, dividends, cash flow
generation, costs and cost synergies, capital projects, economic
trends, outlook and all other information relating to matters that
are not historical facts may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Actual results could differ materially from the views
expressed. Factors that could cause actual results to differ
materially from the outlook expressed or implied in any
forward-looking statement include, without limitation: changes in
economic and business conditions; changes in financial and
operating performance of our major customers and industries and
markets served by us; the timing of orders received from customers;
the gain or loss of significant customers; competition from other
manufacturers; changes in the demand for our products or the
end-user markets in which our products are sold; limitations or
prohibitions on the manufacture and sale of our products;
availability of raw materials; increases in the cost of raw
materials and energy, and our ability to pass through such
increases to our customers; changes in our markets in general;
fluctuations in foreign currencies; changes in laws and government
regulation impacting our operations or our products; the occurrence
of regulatory actions, proceedings, claims or litigation; the
occurrence of cyber-security breaches, terrorist attacks,
industrial accidents, natural disasters or climate change; the
inability to maintain current levels of product or premises
liability insurance or the denial of such coverage; political
unrest affecting the global economy, including adverse effects from
terrorism or hostilities; political instability affecting our
manufacturing operations or joint ventures; changes in accounting
standards; the inability to achieve results from our global
manufacturing cost reduction initiatives as well as our ongoing
continuous improvement and rationalization programs; changes in the
jurisdictional mix of our earnings and changes in tax laws and
rates; changes in monetary policies, inflation or interest rates
that may impact our ability to raise capital or increase our cost
of funds, impact the performance of our pension fund investments
and increase our pension expense and funding obligations;
volatility and uncertainties in the debt and equity markets;
technology or intellectual property infringement, including
cyber-security breaches, and other innovation risks; decisions we
may make in the future; the ability to successfully execute,
operate and integrate acquisitions and divestitures; uncertainties
as to the duration and impact of the coronavirus (COVID-19)
pandemic; and the other factors detailed from time to time in the
reports we file with the SEC, including those described under "Risk
Factors" in our Annual Report on Form 10-K and our Quarterly
Reports on Form 10-Q. These forward-looking statements speak only
as of the date of this press release. We assume no obligation to
provide any revisions to any forward-looking statements should
circumstances change, except as otherwise required by securities
and other applicable laws.
Albemarle Corporation and Subsidiaries
Consolidated Statements of Income
(In Thousands Except Per Share Amounts) (Unaudited)
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales
|
$
|
879,147
|
|
|
$
|
992,564
|
|
|
$
|
3,128,909
|
|
|
$
|
3,589,427
|
|
Cost of goods
sold
|
613,727
|
|
|
654,053
|
|
|
2,134,056
|
|
|
2,331,649
|
|
Gross
profit
|
265,420
|
|
|
338,511
|
|
|
994,853
|
|
|
1,257,778
|
|
Selling, general and
administrative expenses
|
124,909
|
|
|
185,163
|
|
|
429,827
|
|
|
533,368
|
|
Research and
development expenses
|
15,375
|
|
|
14,263
|
|
|
59,214
|
|
|
58,287
|
|
Operating
profit
|
125,136
|
|
|
139,085
|
|
|
505,812
|
|
|
666,123
|
|
Interest and
financing expenses
|
(19,152)
|
|
|
(22,400)
|
|
|
(73,116)
|
|
|
(57,695)
|
|
Other expenses,
net
|
(57,557)
|
|
|
(38,388)
|
|
|
(59,177)
|
|
|
(45,478)
|
|
Income before income
taxes and equity in net income of
unconsolidated investments
|
48,427
|
|
|
78,297
|
|
|
373,519
|
|
|
562,950
|
|
Income tax (benefit)
expense
|
(10,101)
|
|
|
(5,105)
|
|
|
54,425
|
|
|
88,161
|
|
Income before equity
in net income of unconsolidated
investments
|
58,528
|
|
|
83,402
|
|
|
319,094
|
|
|
474,789
|
|
Equity in net income
of unconsolidated investments (net of
tax)
|
43,649
|
|
|
22,841
|
|
|
127,521
|
|
|
129,568
|
|
Net income
|
102,177
|
|
|
106,243
|
|
|
446,615
|
|
|
604,357
|
|
Net income
attributable to noncontrolling interests
|
(17,542)
|
|
|
(15,852)
|
|
|
(70,851)
|
|
|
(71,129)
|
|
Net income
attributable to Albemarle Corporation
|
$
|
84,635
|
|
|
$
|
90,391
|
|
|
$
|
375,764
|
|
|
$
|
533,228
|
|
Basic earnings per
share:
|
$
|
0.79
|
|
|
$
|
0.85
|
|
|
$
|
3.53
|
|
|
$
|
5.03
|
|
Diluted earnings per
share:
|
$
|
0.79
|
|
|
$
|
0.85
|
|
|
$
|
3.52
|
|
|
$
|
5.02
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – basic
|
106,665
|
|
|
106,037
|
|
|
106,402
|
|
|
105,949
|
|
Weighted-average
common shares outstanding – diluted
|
107,312
|
|
|
106,314
|
|
|
106,808
|
|
|
106,321
|
|
Albemarle Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(In Thousands) (Unaudited)
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
746,724
|
|
|
$
|
613,110
|
|
Trade accounts
receivable
|
530,838
|
|
|
612,651
|
|
Other accounts
receivable
|
61,958
|
|
|
67,551
|
|
Inventories
|
750,237
|
|
|
768,984
|
|
Other current
assets
|
116,427
|
|
|
162,813
|
|
Total current
assets
|
2,206,184
|
|
|
2,225,109
|
|
Property, plant and
equipment
|
7,427,641
|
|
|
6,817,843
|
|
Less accumulated
depreciation and amortization
|
2,073,016
|
|
|
1,908,370
|
|
Net property, plant
and equipment
|
5,354,625
|
|
|
4,909,473
|
|
Investments
|
656,244
|
|
|
579,813
|
|
Other
assets
|
219,268
|
|
|
213,061
|
|
Goodwill
|
1,665,520
|
|
|
1,578,785
|
|
Other intangibles,
net of amortization
|
349,105
|
|
|
354,622
|
|
Total
assets
|
$
|
10,450,946
|
|
|
$
|
9,860,863
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
483,221
|
|
|
$
|
574,138
|
|
Accrued
expenses
|
440,763
|
|
|
576,297
|
|
Current
portion of long-term debt
|
804,677
|
|
|
187,336
|
|
Dividends
payable
|
40,937
|
|
|
38,764
|
|
Income taxes
payable
|
32,251
|
|
|
32,461
|
|
Total current
liabilities
|
1,801,849
|
|
|
1,408,996
|
|
Long-term
debt
|
2,767,381
|
|
|
2,862,921
|
|
Postretirement
benefits
|
48,075
|
|
|
50,899
|
|
Pension
benefits
|
340,818
|
|
|
292,073
|
|
Other noncurrent
liabilities
|
629,377
|
|
|
754,536
|
|
Deferred income
taxes
|
394,852
|
|
|
397,858
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Albemarle Corporation
shareholders' equity:
|
|
|
|
Common
stock
|
1,069
|
|
|
1,061
|
|
Additional
paid-in-capital
|
1,438,038
|
|
|
1,383,446
|
|
Accumulated
other comprehensive loss
|
(326,132)
|
|
|
(395,735)
|
|
Retained
earnings
|
3,155,252
|
|
|
2,943,478
|
|
Total Albemarle
Corporation shareholders' equity
|
4,268,227
|
|
|
3,932,250
|
|
Noncontrolling
interests
|
200,367
|
|
|
161,330
|
|
Total
equity
|
4,468,594
|
|
|
4,093,580
|
|
Total liabilities and
equity
|
$
|
10,450,946
|
|
|
$
|
9,860,863
|
|
Albemarle Corporation and Subsidiaries
Selected Consolidated Cash Flow Data
(In Thousands) (Unaudited)
|
Year
Ended
|
|
December
31,
|
|
2020
|
|
2019
|
Cash and cash
equivalents at beginning of year
|
$
|
613,110
|
|
|
$
|
555,320
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
446,615
|
|
|
604,357
|
|
Adjustments to
reconcile net income to cash flows from operating
activities:
|
|
|
|
Depreciation and
amortization
|
231,984
|
|
|
213,484
|
|
Gain on sale of joint
venture
|
(7,168)
|
|
|
—
|
|
Gain on sale of
property
|
—
|
|
|
(14,411)
|
|
Stock-based
compensation and other
|
22,837
|
|
|
19,680
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(127,521)
|
|
|
(129,568)
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
88,161
|
|
|
71,746
|
|
Pension and
postretirement expense
|
45,658
|
|
|
31,515
|
|
Pension and
postretirement contributions
|
(16,434)
|
|
|
(16,478)
|
|
Unrealized gain on
investments in marketable securities
|
(4,635)
|
|
|
(2,809)
|
|
Loss on early
extinguishment of debt
|
—
|
|
|
4,829
|
|
Deferred income
taxes
|
(1,976)
|
|
|
14,394
|
|
Changes in current
assets and liabilities, net of effects of acquisitions and
divestitures:
|
|
|
|
Decrease
(increase) in accounts receivable
|
100,118
|
|
|
(18,220)
|
|
Decrease
(increase) in inventories
|
51,978
|
|
|
(46,304)
|
|
Decrease (increase) in
other current assets
|
7,902
|
|
|
(32,941)
|
|
(Decrease) in
accounts payable
|
(31,519)
|
|
|
(12,234)
|
|
(Decrease) in accrued
expenses and income taxes payable
|
(215,011)
|
|
|
(4,640)
|
|
Other, net
|
207,925
|
|
|
36,974
|
|
Net cash provided by
operating activities
|
798,914
|
|
|
719,374
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
(22,572)
|
|
|
(820,000)
|
|
Capital
expenditures
|
(850,477)
|
|
|
(851,796)
|
|
Proceeds from sale of
joint venture
|
11,000
|
|
|
—
|
|
Proceeds from sale of
property and equipment
|
—
|
|
|
10,356
|
|
Sales of marketable
securities, net
|
903
|
|
|
384
|
|
Investments in equity
and other corporate investments
|
(2,427)
|
|
|
(2,569)
|
|
Net cash used in
investing activities
|
(863,573)
|
|
|
(1,663,625)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
borrowings of other long-term debt
|
452,163
|
|
|
1,597,807
|
|
Repayments of
long-term debt
|
(250,000)
|
|
|
(175,215)
|
|
Other borrowings
(repayments), net
|
137,635
|
|
|
(126,364)
|
|
Fees related to early
extinguishment of debt
|
—
|
|
|
(4,419)
|
|
Dividends paid to
shareholders
|
(161,818)
|
|
|
(152,204)
|
|
Dividends paid to
noncontrolling interests
|
(32,061)
|
|
|
(83,187)
|
|
Proceeds from exercise
of stock options
|
40,437
|
|
|
4,814
|
|
Withholding taxes paid
on stock-based compensation award distributions
|
(5,143)
|
|
|
(11,031)
|
|
Debt financing
costs
|
(3,952)
|
|
|
(7,514)
|
|
Net cash provided by
(used in) financing activities
|
177,261
|
|
|
1,042,687
|
|
Net effect of foreign
exchange on cash and cash equivalents
|
21,012
|
|
|
(40,646)
|
|
Increase in cash and
cash equivalents
|
133,614
|
|
|
57,790
|
|
Cash and cash
equivalents at end of period
|
$
|
746,724
|
|
|
$
|
613,110
|
|
Albemarle Corporation and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
358,592
|
|
|
$
|
411,140
|
|
|
$
|
1,144,778
|
|
|
$
|
1,358,170
|
|
Bromine
Specialties
|
263,398
|
|
|
243,464
|
|
|
964,962
|
|
|
1,004,216
|
|
Catalysts
|
195,735
|
|
|
282,522
|
|
|
797,914
|
|
|
1,061,817
|
|
All Other
|
61,422
|
|
|
55,438
|
|
|
221,255
|
|
|
165,224
|
|
Total net
sales
|
$
|
879,147
|
|
|
$
|
992,564
|
|
|
$
|
3,128,909
|
|
|
$
|
3,589,427
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
122,131
|
|
|
$
|
140,080
|
|
|
$
|
393,093
|
|
|
$
|
524,934
|
|
Bromine
Specialties
|
87,854
|
|
|
79,714
|
|
|
323,605
|
|
|
328,457
|
|
Catalysts
|
22,053
|
|
|
76,734
|
|
|
130,134
|
|
|
270,624
|
|
All Other
|
18,414
|
|
|
20,697
|
|
|
84,821
|
|
|
49,628
|
|
Corporate
|
(29,327)
|
|
|
(22,562)
|
|
|
(112,915)
|
|
|
(136,862)
|
|
Total adjusted
EBITDA
|
$
|
221,125
|
|
|
$
|
294,663
|
|
|
$
|
818,738
|
|
|
$
|
1,036,781
|
|
See accompanying non-GAAP reconciliations below.
Additional Information
It should be noted that adjusted net income attributable to
Albemarle Corporation, adjusted diluted earnings per share,
non-operating pension and OPEB items per diluted share,
non-recurring and other unusual items per diluted share, adjusted
effective income tax rates, EBITDA, adjusted EBITDA, EBITDA margin
and adjusted EBITDA margin are financial measures that are not
required by, or presented in accordance with, accounting principles
generally accepted in the United
States, or GAAP. These non-GAAP measures should not be
considered as alternatives to Net income attributable to Albemarle
Corporation ("earnings"). These measures are presented here to
provide additional useful measurements to review our operations,
provide transparency to investors and enable period-to-period
comparability of financial performance. The Company's chief
operating decision maker uses these measures to assess the ongoing
performance of the Company and its segments, as well as for
business and enterprise planning purposes.
A description of other non-GAAP financial measures that we use
to evaluate our operations and financial performance, and
reconciliation of these non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP can be found on the following pages of this
press release, which is also is available on Albemarle's website at
https://investors.albemarle.com. The Company does not provide a
reconciliation of forward-looking non-GAAP financial measures to
the most directly comparable financial measures calculated and
reported in accordance with GAAP, as the Company is unable to
estimate significant non-recurring or unusual items without
unreasonable effort. The amounts and timing of these items are
uncertain and could be material to the Company's results calculated
in accordance with GAAP.
ALBEMARLE
CORPORATION AND SUBSIDIARIES
Non-GAAP
Reconciliations
(Unaudited)
See below for a reconciliation of adjusted net income
attributable to Albemarle Corporation, EBITDA and adjusted EBITDA,
the non-GAAP financial measures, to Net income attributable to
Albemarle Corporation ("earnings"), the most directly comparable
financial measure calculated and reported in accordance with GAAP.
Adjusted earnings is defined as earnings before the non-recurring,
other unusual and non-operating pension and OPEB items as listed
below. EBITDA is defined as earnings before interest and financing
expenses, income taxes, and depreciation and amortization. Adjusted
EBITDA is defined as EBITDA and the non-recurring, other unusual
and non-operating pension and OPEB items as listed below.
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
In thousands, except
percentages and per share amounts
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net income
attributable to Albemarle Corporation
|
$
|
84,635
|
|
|
$
|
90,391
|
|
|
$
|
375,764
|
|
|
$
|
533,228
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items (net of tax)
|
37,572
|
|
|
20,453
|
|
|
30,668
|
|
|
18,648
|
|
Non-recurring and
other unusual items (net of tax)
|
3,409
|
|
|
73,430
|
|
|
33,087
|
|
|
90,669
|
|
Adjusted net income
attributable to Albemarle Corporation
|
$
|
125,616
|
|
|
$
|
184,274
|
|
|
$
|
439,519
|
|
|
$
|
642,545
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
$
|
1.17
|
|
|
$
|
1.73
|
|
|
$
|
4.12
|
|
|
$
|
6.04
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
107,312
|
|
|
106,314
|
|
|
106,808
|
|
|
106,321
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
84,635
|
|
|
$
|
90,391
|
|
|
$
|
375,764
|
|
|
$
|
533,228
|
|
Add back:
|
|
|
|
|
|
|
|
Interest and financing
expenses
|
19,152
|
|
|
22,400
|
|
|
73,116
|
|
|
57,695
|
|
Income tax (benefit)
expense
|
(10,101)
|
|
|
(5,105)
|
|
|
54,425
|
|
|
88,161
|
|
Depreciation and
amortization
|
61,770
|
|
|
56,766
|
|
|
231,984
|
|
|
213,484
|
|
EBITDA
|
155,456
|
|
|
164,452
|
|
|
735,289
|
|
|
892,568
|
|
Non-operating pension
and OPEB items
|
49,372
|
|
|
28,780
|
|
|
40,668
|
|
|
26,970
|
|
Non-recurring and
other unusual items (excluding items
associated with interest expense)
|
16,297
|
|
|
101,431
|
|
|
42,781
|
|
|
117,243
|
|
Adjusted
EBITDA
|
$
|
221,125
|
|
|
$
|
294,663
|
|
|
$
|
818,738
|
|
|
$
|
1,036,781
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
879,147
|
|
|
$
|
992,564
|
|
|
$
|
3,128,909
|
|
|
$
|
3,589,427
|
|
EBITDA
margin
|
17.7
|
%
|
|
16.6
|
%
|
|
23.5
|
%
|
|
24.9
|
%
|
Adjusted EBITDA
margin
|
25.2
|
%
|
|
29.7
|
%
|
|
26.2
|
%
|
|
28.9
|
%
|
See below for a reconciliation of adjusted EBITDA on a segment
basis, the non-GAAP financial measure, to Net income attributable
to Albemarle Corporation, the most directly comparable financial
measure calculated and reporting in accordance with GAAP (in
thousands, except percentages).
|
Lithium
|
|
Bromine
Specialties
|
|
Catalysts
|
|
Reportable
Segments
Total
|
|
All
Other
|
|
Corporate
|
|
Consolidated
Total
|
|
% of
Net
Sales
|
Three months ended
December 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
89,331
|
|
|
$
|
75,590
|
|
|
$
|
9,379
|
|
|
$
|
174,300
|
|
|
$
|
16,254
|
|
|
$
|
(105,919)
|
|
|
$
|
84,635
|
|
|
9.6
|
%
|
Depreciation and
amortization
|
30,272
|
|
|
13,464
|
|
|
12,674
|
|
|
56,410
|
|
|
2,160
|
|
|
3,200
|
|
|
61,770
|
|
|
7.0
|
%
|
Non-recurring and
other unusual
items
|
2,528
|
|
|
(1,200)
|
|
|
—
|
|
|
1,328
|
|
|
—
|
|
|
14,969
|
|
|
16,297
|
|
|
1.9
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,152
|
|
|
19,152
|
|
|
2.2
|
%
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,101)
|
|
|
(10,101)
|
|
|
(1.1)
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
49,372
|
|
|
49,372
|
|
|
5.6
|
%
|
Adjusted
EBITDA
|
$
|
122,131
|
|
|
$
|
87,854
|
|
|
$
|
22,053
|
|
|
$
|
232,038
|
|
|
$
|
18,414
|
|
|
$
|
(29,327)
|
|
|
$
|
221,125
|
|
|
25.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
29,158
|
|
|
$
|
67,625
|
|
|
$
|
63,358
|
|
|
$
|
160,141
|
|
|
$
|
18,559
|
|
|
$
|
(88,309)
|
|
|
$
|
90,391
|
|
|
9.1
|
%
|
Depreciation and
amortization
|
27,755
|
|
|
12,330
|
|
|
12,582
|
|
|
52,667
|
|
|
2,138
|
|
|
1,961
|
|
|
56,766
|
|
|
5.7
|
%
|
Non-recurring and
other unusual
items (excluding items
associated with interest expense)
|
83,167
|
|
|
(241)
|
|
|
794
|
|
|
83,720
|
|
|
—
|
|
|
17,711
|
|
|
101,431
|
|
|
10.2
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,400
|
|
|
22,400
|
|
|
2.3
|
%
|
Income tax
benefit
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,105)
|
|
|
(5,105)
|
|
|
(0.5)
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,780
|
|
|
28,780
|
|
|
2.9
|
%
|
Adjusted
EBITDA
|
$
|
140,080
|
|
|
$
|
79,714
|
|
|
$
|
76,734
|
|
|
$
|
296,528
|
|
|
$
|
20,697
|
|
|
$
|
(22,562)
|
|
|
$
|
294,663
|
|
|
29.7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2020:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
277,711
|
|
|
$
|
274,495
|
|
|
$
|
80,149
|
|
|
$
|
632,355
|
|
|
$
|
76,323
|
|
|
$
|
(332,914)
|
|
|
$
|
375,764
|
|
|
12.0
|
%
|
Depreciation and
amortization
|
112,854
|
|
|
50,310
|
|
|
49,985
|
|
|
213,149
|
|
|
8,498
|
|
|
10,337
|
|
|
231,984
|
|
|
7.4
|
%
|
Non-recurring and
other unusual items
|
2,528
|
|
|
(1,200)
|
|
|
—
|
|
|
1,328
|
|
|
—
|
|
|
41,453
|
|
|
42,781
|
|
|
1.4
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,116
|
|
|
73,116
|
|
|
2.3
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
54,425
|
|
|
54,425
|
|
|
1.7
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40,668
|
|
|
40,668
|
|
|
1.3
|
%
|
Adjusted
EBITDA
|
$
|
393,093
|
|
|
$
|
323,605
|
|
|
$
|
130,134
|
|
|
$
|
846,832
|
|
|
$
|
84,821
|
|
|
$
|
(112,915)
|
|
|
$
|
818,738
|
|
|
26.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended
December 31, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
341,767
|
|
|
$
|
279,945
|
|
|
$
|
219,686
|
|
|
$
|
841,398
|
|
|
$
|
41,188
|
|
|
$
|
(349,358)
|
|
|
$
|
533,228
|
|
|
14.9
|
%
|
Depreciation and
amortization
|
99,424
|
|
|
47,611
|
|
|
50,144
|
|
|
197,179
|
|
|
8,440
|
|
|
7,865
|
|
|
213,484
|
|
|
5.9
|
%
|
Non-recurring and
other unusual
items (excluding items associated with
interest expense)
|
83,743
|
|
|
901
|
|
|
794
|
|
|
85,438
|
|
|
—
|
|
|
31,805
|
|
|
117,243
|
|
|
3.3
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
57,695
|
|
|
57,695
|
|
|
1.6
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88,161
|
|
|
88,161
|
|
|
2.5
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,970
|
|
|
26,970
|
|
|
0.8
|
%
|
Adjusted
EBITDA
|
$
|
524,934
|
|
|
$
|
328,457
|
|
|
$
|
270,624
|
|
|
$
|
1,124,015
|
|
|
$
|
49,628
|
|
|
$
|
(136,862)
|
|
|
$
|
1,036,781
|
|
|
28.9
|
%
|
Non-operating pension and OPEB items, consisting of
mark-to-market actuarial gains/losses, settlements/curtailments,
interest cost and expected return on assets, are not allocated to
our operating segments and are included in the Corporate category.
In addition, we believe that these components of pension cost are
mainly driven by market performance, and we manage these separately
from the operational performance of our businesses. In accordance
with GAAP, these non-operating pension and OPEB items are included
in Other (expenses) income, net. Non-operating pension and OPEB
items were as follows (in thousands):
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
MTM actuarial
loss
|
$
|
52,269
|
|
|
$
|
29,339
|
|
|
$
|
52,269
|
|
|
$
|
29,339
|
|
Interest
cost
|
7,178
|
|
|
8,893
|
|
|
28,630
|
|
|
35,394
|
|
Expected return on
assets
|
(10,075)
|
|
|
(9,452)
|
|
|
(40,231)
|
|
|
(37,763)
|
|
Total
|
$
|
49,372
|
|
|
$
|
28,780
|
|
|
$
|
40,668
|
|
|
$
|
26,970
|
|
In addition to the non-operating pension and OPEB items
disclosed above, we have identified certain other items and
excluded them from our adjusted net income calculation for the
periods presented. A listing of these items, as well as a detailed
description of each follows below (per diluted share):
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Restructuring and
other(1)
|
$
|
0.08
|
|
|
$
|
—
|
|
|
$
|
0.15
|
|
|
$
|
0.05
|
|
Acquisition and
integration related costs(2)
|
0.02
|
|
|
0.05
|
|
|
0.13
|
|
|
0.15
|
|
Gain on sale of
property(3)
|
—
|
|
|
(0.02)
|
|
|
—
|
|
|
(0.10)
|
|
Stamp
duty(4)
|
—
|
|
|
0.61
|
|
|
—
|
|
|
0.61
|
|
Windfield tax
settlement(5)
|
—
|
|
|
0.16
|
|
|
—
|
|
|
0.16
|
|
Loss on
extinguishment of debt(6)
|
—
|
|
|
0.04
|
|
|
—
|
|
|
0.04
|
|
Other(7)
|
0.06
|
|
|
0.13
|
|
|
0.07
|
|
|
0.20
|
|
Discrete tax
items(8)
|
(0.13)
|
|
|
(0.28)
|
|
|
(0.04)
|
|
|
(0.26)
|
|
Total non-recurring
and other unusual items
|
$
|
0.03
|
|
|
$
|
0.69
|
|
|
$
|
0.31
|
|
|
$
|
0.85
|
|
(1)
|
In 2020, we recorded
severance expenses as part of business reorganization plans,
impacting each of our businesses and Corporate, primarily in the
U.S., Belgium, Germany and with our Jordanian joint venture
partner. The balance of unpaid severance is recorded in Accrued
expenses and is primarily expected to be paid through 2021. During
the year ended December 31, 2019, severance expenses were recorded
as part of a business reorganization plan primarily in Catalysts,
Lithium and Corporate. Restructuring and other expenses are
included in the consolidated statements of income as follows (in
millions, except per share amounts):
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
December
31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Restructuring and
other:
|
|
|
|
|
|
|
|
Cost of goods
sold
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.7
|
|
|
$
|
—
|
|
Selling, general and
administrative expenses
|
8.6
|
|
|
0.6
|
|
|
19.2
|
|
|
5.9
|
|
Net income
attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(0.3)
|
|
|
—
|
|
Total
|
$
|
8.6
|
|
|
$
|
0.6
|
|
|
$
|
19.6
|
|
|
$
|
5.9
|
|
Total restructuring
and other, after income taxes
|
$
|
8.4
|
|
|
$
|
0.4
|
|
|
$
|
16.3
|
|
|
$
|
5.4
|
|
Total restructuring
and other, per diluted share
|
$
|
0.08
|
|
|
$
|
—
|
|
|
$
|
0.15
|
|
|
$
|
0.05
|
|
(2)
|
Costs related to the
acquisition, integration and potential divestitures for various
significant projects, recorded in Selling, general and
administrative expenses for the three months and year ended
December 31, 2020 of $2.9 million and $17.3 million ($2.3 million
and $13.4 million after income taxes, or $0.02 and $0.13 per
share), respectively, and for the three months and year ended
December 31, 2019 of $6.3 million and $20.7 million ($5.1 million
and $16.1 million after income taxes, or $0.05 and $0.15 per
share), respectively.
|
|
|
(3)
|
Included in Selling,
general and administrative expenses for the three months and year
ended December 31, 2019 is a gain of $3.3 million ($2.4 million
after income taxes, or $0.02 per share) related to the release of
liabilities as part of the sale of a property. In addition,
included in Other expenses, net, for the year ended December 31,
2019 is a gain of $11.1 million ($8.5 million after income taxes,
or $0.08 per share) related to the sale of land in Pasadena, Texas
not used as part of our operations.
|
|
|
(4)
|
Included in Selling,
general and administrative expenses for the three months and year
ended December 31, 2019 is $64.8 million (or $0.61 per share as
there was no income tax impact) resulting from stamp duties levied
on assets purchased related to the Wodgina Project, with the unpaid
balance recorded in Accrued expenses as of December 31,
2019.
|
|
|
(5)
|
Included in Equity in
net income of unconsolidated investments (net of tax) for the three
months and year ended December 31, 2019 is $17.3 million (or $0.16
per share) representing our 49% share of a tax settlement between
our Windfield joint venture and an Australian taxing authority.
This adjustment is offset by a discrete tax benefit from a
competent tax authority agreement. See below for a discussion of
discrete tax items.
|
|
|
(6)
|
Included in Interest
and financing expenses for the three months and year ended December
31, 2019 is a loss on early extinguishment of debt of $4.8 million
($3.7 million after income taxes, or $0.04 per share) related to
tender premiums, fees, unamortized discounts and unamortized
deferred financing costs from the redemption of the 4.50% senior
notes due in 2020.
|
|
|
(7)
|
Other adjustments for
the three months ended December 31, 2020 included amounts recorded
in:
|
|
- Cost of goods sold - $1.3 million of expense
related to a legal matter as part of a prior acquisition in our
Lithium business.
- Selling, general and administrative expenses
- $3.1 million of shortfall contributions for our
multiemployer plan financial improvement plan.
- Other expenses, net - $8.8 million of
losses resulting from the adjustment of indemnifications related to
previously disposed businesses and $1.2 million of expenses
related to other costs outside of our regular operations, offset by
a $7.2 million gain related to the sale of our ownership
percentage in the Saudi Organometallic Chemicals Company LLC
("SOCC") joint venture and $2.8 million of gains primarily relating
to the sale of intangible assets in our Bromine business and
property in Germany not used as part of our operations.
After income taxes,
these charges totaled $6.4 million, or $0.06 per share.
|
|
|
|
|
|
|
Other adjustments for
the year ended December 31, 2020 included amounts recorded
in:
|
|
- Cost of goods sold - $1.3 million of
expense related to a legal matter as part of a prior acquisition in
our Lithium business.
- Selling, general and administrative expenses
- $3.1 million of shortfall contributions for our
multiemployer plan financial improvement plan and $3.8 million
of a net expense primarily relating to the increase of
environmental reserves at non-operating businesses we have
previously divested.
- Other expenses, net - $7.2 million
gain related to the sale of our ownership percentage in the SOCC
joint venture, $3.6 million of a net gain primarily relating
to the sale of intangible assets in our Bromine business and
property in Germany not used as part of our operations and a
$2.5 million net gain resulting from the settlement of legal
matters related to a business sold or a site in the process of
being sold, partially offset by $9.6 million of losses
resulting from the adjustment of indemnifications related to
previously disposed businesses and $1.2 million of expenses
related to other costs outside of our regular operations.
|
|
|
|
After income taxes,
these charges totaled $7.5 million, or $0.07 per share.
|
|
|
|
Other adjustments for
the three months ended December 31, 2019 included amounts recorded
in:
|
|
- Cost of goods sold - $0.1 million related to
non-routine labor and compensation related costs in Chile that are
outside normal compensation arrangements.
- Selling, general and administrative expenses
- $0.8 million of shortfall contributions for our multiemployer
pension plan financial improvement plan, $0.8 million related to
the settlement of terminated agreements, primarily in the Catalysts
segment, and $0.8 million related to the settlement of an ongoing
audit in the Lithium segment.
- Other expenses, net - $8.5 million of a net
loss resulting from the adjustment of indemnifications and other
liabilities related to previously disposed businesses, $3.6 million
of asset retirement obligation charges related to the update of an
estimate at a site formerly owned by Albemarle, and $1.2 million of
non-operating pension costs from our 50% interest in JBC.
|
|
|
|
After income taxes,
these charges totaled $14.3 million, or $0.13 per share.
|
|
|
|
Other adjustments for
the year ended December 31, 2019 included amounts recorded
in:
|
|
- Cost of goods sold - $0.7 million
related to non-routine labor and compensation related costs in
Chile that are outside normal compensation arrangements.
- Selling, general and administrative expenses
- $1.8 million of shortfall contributions for our
multiemployer pension plan financial improvement plan, $0.9 million
of a write-off of uncollectable accounts receivable from a
terminated distributor in the Bromine Specialties segment, $1.0
million related to the settlement of terminated agreements,
primarily in the Catalysts segment, and $0.8 million related
to the settlement of an ongoing audit in the Lithium segment.
- Other expenses, net - $3.1 million of
unrecoverable vendor costs outside the operations of the business
related to the construction of the future Kemerton production
facility, $9.8 million of a net loss primarily resulting from the
adjustment of indemnifications and other liabilities related to
previously disposed businesses or purchase accounting, $3.6 million
of asset retirement obligation charges related to the update of an
estimate at a site formerly owned by Albemarle, and $1.2 million of
non-operating pension costs from our 50% interest in JBC.
|
|
|
|
After income taxes,
these charges totaled $21.7 million, or $0.20 per share.
|
|
|
(8)
|
Included in Income
tax (benefit) expense for the three months and year ended December
31, 2020 are discrete net tax benefits of $13.9 million, or $0.13
per share, and $4.3 million, or $0.04 per share, respectively. The
net benefit for the three months is primarily related to benefits
for uncertain tax positions for statute of limitation expirations,
excess tax benefits realized from stock-based compensation
arrangements, and return to accrual adjustments. The net benefit
for the full year 2020 is primarily related to changes to uncertain
tax positions, excess tax benefits realized from stock-based
compensation arrangements, and return to accrual
adjustments.
|
|
|
|
Included in Income
tax (benefit) expense for the three months and year ended December
31, 2019 are discrete net tax benefits of $29.8 million, or $0.28
per share, and $27.4 million, or $0.26 per share, respectively.
This net benefit is primarily related to benefits for uncertain tax
positions primarily related to seeking treaty relief from the
competent authority to prevent double taxation, and state rate
changes.
|
|
|
See below for a
reconciliation of the adjusted effective income tax rate, the
non-GAAP financial measure, to the effective income tax rate, the
most directly comparable financial measure calculated and reporting
in accordance with GAAP (in thousands, except
percentages).
|
|
Income before
income taxes and
equity in net income
of unconsolidated
investments
|
|
Income tax
(benefit)
expense
|
|
Effective income
tax
rate
|
Three months ended
December 31, 2020:
|
|
|
|
|
|
As
reported
|
$
|
48,427
|
|
|
$
|
(10,101)
|
|
|
(20.9)
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
65,669
|
|
|
24,688
|
|
|
|
As
adjusted
|
$
|
114,096
|
|
|
$
|
14,587
|
|
|
12.8
|
%
|
|
|
|
|
|
|
Three months ended
December 31, 2019:
|
|
|
|
|
|
As
reported
|
$
|
78,297
|
|
|
$
|
(5,105)
|
|
|
(6.5)
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
117,748
|
|
|
41,157
|
|
|
|
As
adjusted
|
$
|
196,045
|
|
|
$
|
36,052
|
|
|
18.4
|
%
|
|
|
|
|
|
|
Year ended
December 31, 2020:
|
|
|
|
|
|
As
reported
|
$
|
373,519
|
|
|
$
|
54,425
|
|
|
14.6
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
83,770
|
|
|
19,694
|
|
|
|
As
adjusted
|
$
|
457,289
|
|
|
$
|
74,119
|
|
|
16.2
|
%
|
|
|
|
|
|
|
Year ended
December 31, 2019:
|
|
|
|
|
|
As
reported
|
$
|
562,950
|
|
|
$
|
88,161
|
|
|
15.7
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
131,750
|
|
|
39,725
|
|
|
|
As
adjusted
|
$
|
694,700
|
|
|
$
|
127,886
|
|
|
18.4
|
%
|
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SOURCE Albemarle Corporation