PHILADELPHIA, Aug. 5, 2021 /PRNewswire/ --
-- Higher Volumes and Pricing Drove Strong
Sequential Improvement --
-- Completed $262 Million Equity Issuance to Fund Capacity
Expansion --
-- Released 2020 Sustainability Report
--
-- Raising Full Year 2021 Guidance --
Livent Corporation (NYSE: LTHM) today reported results for the
second quarter of 2021.
Revenue was $102.2 million, up 11%
from the first quarter of 2021 and 57% higher versus the prior
year, with reported GAAP net income of $6.5
million, or 3 cents per
diluted share. Adjusted EBITDA was $16.0 million, 44% higher than the first quarter
of 2021 and 150% higher versus the prior year, and adjusted
earnings per share was 4 cents per
diluted share. Improving market conditions supported higher
volumes sold and higher prices across key lithium products versus
the prior quarter.
Key Recent Developments
Livent launched and successfully completed a public equity
issuance in June, raising gross proceeds of $262 million which will be primarily deployed
towards lithium capacity expansions, particularly in
Argentina. Livent resumed its capacity expansion projects in
the United States and Argentina earlier this year, backed by the
execution of recent long-term supply agreements, an improving
market outlook and continued local government and community
support.
"We were pleased to complete the equity issuance and are focused
on executing on our capacity expansion projects, which are
progressing on-schedule," said Paul
Graves, president and chief executive officer of
Livent. "Increasing production capacity and building upon our
low cost and sustainable operations will strengthen our commercial
footprint and enhance our position as a partner of choice to
leading auto OEMs and battery producers."
Livent also released its 2020 Sustainability Report in
June. The report details the company's ESG progress,
highlights the new sustainability goals it announced earlier this
year and reaffirms the company's commitment to environmental
protection, social responsibility and transparency. Key ESG
metrics in the report were also reviewed and assured by a
third-party and the content satisfies more of the requirements of
leading disclosure frameworks. Livent's 2020 Sustainability
Report, with the theme of Powering Progress, is available at
https://livent.com/sustainability/.
Guidance and Outlook (1)
Livent is increasing its full year 2021 guidance for Revenue and
Adjusted EBITDA as market conditions and the company's financial
performance continue to strengthen. With limited additional
volumes available, this increase in guidance is driven largely by
higher pricing. Livent's 2021 total capital spending estimate
remains unchanged with its capacity expansion program continuing to
progress.
($
million)
|
Revised Full Year
2021E
|
Prior Full Year
2021E
|
Revenue
|
370 -
390
|
335 -
365
|
Adjusted
EBITDA
|
55 -
70
|
40 -
60
|
"Lithium market conditions remain very positive in 2021 and we
see the trends continuing into 2022. Pricing conditions have
significantly improved during the year and we have seen a notable
improvement in lithium hydroxide and carbonate demand alongside
strong global electric vehicle sales growth," continued
Graves. "Increasing support for electrification from OEMs,
governments and consumers is solidifying expectations for
substantial long-term lithium demand growth. However, this is
not being met with sufficient reliable, qualified supply expansion,
which we expect will be apparent as the market remains tight and
occasionally short, particularly over the next few years."
Supplemental Information
In this press release, Livent uses the financial measures
Adjusted EBITDA, adjusted earnings per diluted share and adjusted
cash from operations. 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 nearly eight 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 more than 900 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, including without limitation, our capital
expansion plans and development of the Nemaska project. 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; supply chain
disruptions in the electric vehicle manufacturing industry, such
as in the availability and price of semiconductors; 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 further 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; events
outside our control that could prevent us from achieving our
sustainability goals; as well as the other factors described under
the caption entitled "Risk Factors" in Livent's 2020 Form 10-K
filed with the Securities and Exchange Commission on February 26, 2021 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.
- Although we provide a forecast for Adjusted EBITDA and adjusted
cash from operations, we are not able to forecast the most directly
comparable measure calculated and presented in accordance with
GAAP. Certain elements of the composition of the GAAP amount
are not predictable, making it impractical for us to
forecast such GAAP measure or to reconcile corresponding
non-GAAP financial measure to such GAAP measure without
unreasonable efforts. For the same reason, we are unable to
address the probable significance of the unavailable information.
Such elements include, but are not limited to, restructuring,
transaction related charges, and related cash activity. As a
result, no GAAP outlook is provided for these metrics.
LIVENT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited, in
millions, except per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
|
102.2
|
|
|
$
|
64.9
|
|
|
$
|
193.9
|
|
|
$
|
133.4
|
|
Costs of
sales
|
81.8
|
|
|
54.7
|
|
|
160.2
|
|
|
108.6
|
|
Gross
margin
|
20.4
|
|
|
10.2
|
|
|
33.7
|
|
|
24.8
|
|
Selling, general and
administrative expenses
|
11.7
|
|
|
10.3
|
|
|
22.4
|
|
|
21.1
|
|
Research and
development expenses
|
0.7
|
|
|
0.8
|
|
|
1.4
|
|
|
1.8
|
|
Restructuring and
other charges
|
2.0
|
|
|
0.9
|
|
|
2.3
|
|
|
5.7
|
|
Separation-related
costs
|
0.6
|
|
|
0.1
|
|
|
0.5
|
|
|
0.2
|
|
Total costs and
expenses
|
96.8
|
|
|
66.8
|
|
|
186.8
|
|
|
137.4
|
|
Income/(loss) from
operations before loss on debt
extinguishment, equity in net loss of unconsolidated
affiliates, interest expense, net and income taxes
|
5.4
|
|
|
(1.9)
|
|
|
7.1
|
|
|
(4.0)
|
|
Loss on debt
extinguishment
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Equity in net loss of
unconsolidated affiliates
|
1.4
|
|
|
0.2
|
|
|
2.7
|
|
|
0.3
|
|
Interest expense,
net
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Income/(loss) from
operations before income taxes
|
4.0
|
|
|
(2.2)
|
|
|
4.1
|
|
|
(4.4)
|
|
Income tax
benefit
|
(2.5)
|
|
|
(2.0)
|
|
|
(1.6)
|
|
|
(2.3)
|
|
Net
income/(loss)
|
$
|
6.5
|
|
|
$
|
(0.2)
|
|
|
$
|
5.7
|
|
|
$
|
(2.1)
|
|
Net earnings/(loss)
per weighted average share - basic
|
$
|
0.04
|
|
|
$
|
—
|
|
|
$
|
0.04
|
|
|
$
|
(0.01)
|
|
Net earnings/(loss)
per weighted average share - diluted
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
(0.01)
|
|
Weighted average
common shares outstanding - basic
|
148.7
|
|
|
146.2
|
|
|
147.6
|
|
|
146.1
|
|
Weighted average
common shares outstanding - diluted
|
192.7
|
|
|
146.2
|
|
|
192.2
|
|
|
146.1
|
|
LIVENT
CORPORATION
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
RECONCILIATION OF
NET INCOME/(LOSS) (GAAP) TO ADJUSTED EBITDA
(NON-GAAP)
|
(Unaudited)
|
|
The table below
provides a reconciliation of Net income/(loss) to Adjusted
EBITDA.
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(In
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income/(loss)
(GAAP)
|
$
|
6.5
|
|
|
$
|
(0.2)
|
|
|
$
|
5.7
|
|
|
$
|
(2.1)
|
|
Add back:
|
|
|
|
|
|
|
|
Interest expense,
net
|
—
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
Income tax
benefit
|
(2.5)
|
|
|
(2.0)
|
|
|
(1.6)
|
|
|
(2.3)
|
|
Depreciation and
amortization
|
6.3
|
|
|
6.0
|
|
|
12.5
|
|
|
11.6
|
|
EBITDA (Non-GAAP)
(1)
|
10.3
|
|
|
3.8
|
|
|
16.9
|
|
|
7.2
|
|
Add back:
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses (a)
|
1.0
|
|
|
1.7
|
|
|
3.3
|
|
|
2.9
|
|
Restructuring and
other charges (b)
|
2.0
|
|
|
0.9
|
|
|
2.3
|
|
|
5.7
|
|
Separation-related
costs (c)
|
0.6
|
|
|
0.1
|
|
|
0.5
|
|
|
0.2
|
|
COVID-19 related
costs (d)
|
1.4
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Loss on debt
extinguishment (e)
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Other gain/(loss)
(f)
|
0.7
|
|
|
(0.2)
|
|
|
1.8
|
|
|
(0.3)
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
|
16.0
|
|
|
$
|
6.4
|
|
|
$
|
27.1
|
|
|
$
|
15.8
|
|
___________________
|
1.
|
In addition to net
income/(loss), 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 income/(loss) 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 certain 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
income/(loss) or other measures of performance or liquidity
reported in accordance with U.S. GAAP. The above table reconciles
EBITDA and Adjusted EBITDA from net income/(loss).
|
a.
|
Represents impact of
currency fluctuations on tax assets and liabilities and on
long-term monetary assets associated with our capital expansion as
well as significant currency devaluations. 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; ii.) their association with long-term capital
projects which will not be operational until future periods; or
iii.) the severity of the devaluation and their immediate impact on
our operations in the country.
|
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 transaction related legal fees and
miscellaneous nonrecurring transactions. Three and six months ended
June 30, 2020 includes legal fees related to IPO securities
litigation.
|
c.
|
Represents legal,
professional, transaction related fees and other separation-related
activity.
|
d.
|
Represents
incremental costs associated with COVID-19 recorded in "Cost of
sales" in the condensed consolidated statement of operations,
including but not limited to, incremental quarantine-related
absenteeism, incremental facility cleaning costs, COVID-19 testing,
pandemic-related supplies and personal protective equipment for
employees, among other costs; offset by economic relief provided by
foreign governments.
|
e.
|
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.
|
f.
|
Three and six months
ended June 30, 2021 represents our 25% indirect interest in
nonrecurring transaction costs incurred for the Nemaska Transaction
included in Equity in net loss of unconsolidated affiliates in our
condensed consolidated statement of operations related to our
investment in Nemaska Lithium, Inc. Three and six months ended June
30, 2020 represents a portion of our nonrefundable prepaid research
and development costs advanced to an 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 the
unconsolidated affiliate.
|
RECONCILIATION OF
NET INCOME/(LOSS) (GAAP) TO
|
ADJUSTED AFTER-TAX
EARNINGS/(LOSS) (NON-GAAP)
|
(Unaudited)
|
|
(In
Millions)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income/(loss)
(GAAP)
|
$
|
6.5
|
|
|
$
|
(0.2)
|
|
|
$
|
5.7
|
|
|
$
|
(2.1)
|
|
Special
charges:
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses (a)
|
1.0
|
|
|
1.7
|
|
|
3.3
|
|
|
2.9
|
|
Restructuring and
other charges (b)
|
2.0
|
|
|
0.9
|
|
|
2.3
|
|
|
5.7
|
|
Separation-related
costs (c)
|
0.6
|
|
|
0.1
|
|
|
0.5
|
|
|
0.2
|
|
COVID-19 related costs
(d)
|
1.4
|
|
|
—
|
|
|
2.3
|
|
|
—
|
|
Loss on debt
extinguishment (e)
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Other gain/(loss)
(f)
|
0.7
|
|
|
(0.2)
|
|
|
1.8
|
|
|
(0.3)
|
|
Non-GAAP tax
adjustments (g)
|
(4.4)
|
|
|
(2.5)
|
|
|
(4.7)
|
|
|
(3.7)
|
|
Adjustment for
interest, net of tax, on 2025 Notes assumed converted
(Non-GAAP) (h)
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
Adjusted after-tax
earnings/(loss) (Non-GAAP) (1)
|
$
|
7.8
|
|
|
$
|
(0.1)
|
|
|
$
|
11.4
|
|
|
$
|
2.8
|
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share (GAAP)
|
$
|
0.03
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
(0.01)
|
|
Special charges per
diluted share, before tax:
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses, per diluted share
|
0.01
|
|
|
0.01
|
|
|
0.03
|
|
|
0.02
|
|
Restructuring and
other charges, per diluted share
|
0.01
|
|
|
0.01
|
|
|
0.01
|
|
|
0.04
|
|
COVID-19 related
costs, per diluted share
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Non-GAAP tax
adjustments, per diluted share
|
(0.02)
|
|
|
(0.02)
|
|
|
(0.02)
|
|
|
(0.03)
|
|
Diluted adjusted
after-tax earnings/(loss) per share (Non-GAAP)
(1)
|
$
|
0.04
|
|
|
$
|
—
|
|
|
$
|
0.06
|
|
|
$
|
0.02
|
|
Weighted average
common shares outstanding - diluted (Non-GAAP)
used in diluted adjusted after-tax earnings/(loss) per share
computations
|
192.7
|
|
|
146.2
|
|
|
192.2
|
|
|
147.6
|
|
___________________
|
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.
|
a.
|
Represents impact of
currency fluctuations on tax assets and liabilities and on
long-term monetary assets associated with our capital expansion as
well as significant currency devaluations. 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; ii.) their association with long-term capital
projects which will not be operational until future periods; or
iii.) the severity of the devaluations and their immediate impact
on our operations in the country.
|
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 transaction related legal fees and
miscellaneous nonrecurring transactions. Three and six months ended
June 30, 2020 includes legal fees related to IPO securities
litigation.
|
c.
|
Represents legal,
professional, transaction related fees and other separation-related
activity.
|
d.
|
Represents
incremental costs associated with COVID-19 recorded in "Cost of
sales" in the condensed consolidated statement of operations,
including but not limited to, incremental quarantine-related
absenteeism, incremental facility cleaning costs, COVID-19 testing,
pandemic-related supplies and personal protective equipment for
employees, among other costs; offset by economic relief provided by
foreign governments.
|
e.
|
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.
|
f.
|
Three and six months
ended June 30, 2021 represents our 25% indirect interest in
nonrecurring transaction costs incurred for the Nemaska Transaction
included in Equity in net loss of unconsolidated affiliates in our
condensed consolidated statement of operations related to our
investment in Nemaska Lithium, Inc. Three and six months ended June
30, 2020 represents a portion of our nonrefundable prepaid research
and development costs advanced to an 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 the
unconsolidated affiliate.
|
g.
|
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.
|
h.
|
For the three and six
months ended June 30, 2021, $3.3 million and $5.8 million
of the interest on the 2025 Notes was capitalized, respectively.
For the three and six months ended June 30, 2020, all of the
interest on the 2025 Notes was capitalized.
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
Income tax benefit on
restructuring, separation-related and other
corporate costs
|
$
|
(0.6)
|
|
|
$
|
(0.2)
|
|
|
$
|
(1.1)
|
|
|
$
|
(1.3)
|
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
0.4
|
|
|
0.6
|
|
|
0.4
|
|
|
0.6
|
|
Foreign currency
remeasurement and other discrete items
|
(0.1)
|
|
|
(3.1)
|
|
|
(1.2)
|
|
|
(3.7)
|
|
Other discrete items
(1)
|
(4.1)
|
|
|
0.2
|
|
|
(2.8)
|
|
|
0.7
|
|
Total Non-GAAP tax
adjustments
|
$
|
(4.4)
|
|
|
$
|
(2.5)
|
|
|
$
|
(4.7)
|
|
|
$
|
(3.7)
|
|
___________________
|
1.
|
Three and six months
ended June 30, 2021 includes $4.1 million income tax benefit
related to a revaluation of net deferred tax assets due to the
newly enacted Argentina statutory income tax rate.
|
RECONCILIATION OF
CASH PROVIDED/(REQUIRED) BY OPERATING ACTIVITIES (GAAP)
TO
|
ADJUSTED CASH
PROVIDED BY OPERATIONS (NON-GAAP)
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
(In
Millions)
|
2021
|
|
2020
|
Cash
provided/(required) by operating activities (GAAP)
|
$
|
30.6
|
|
|
$
|
(0.3)
|
|
Restructuring and
other charges
|
3.0
|
|
|
3.9
|
|
Separation-related
activities
|
0.6
|
|
|
0.4
|
|
COVID-19 related costs
(a)
|
2.3
|
|
|
—
|
|
Other
(b)
|
—
|
|
|
(0.6)
|
|
Adjusted cash
provided by operations (Non-GAAP) (1)
|
$
|
36.5
|
|
|
$
|
3.4
|
|
___________________
|
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 provided by operating activities allows
management and investors to compare more easily the cash flows from
period to period.
|
a.
|
Represents
incremental costs associated with COVID-19 recorded in "Cost of
sales" in the condensed consolidated statement of operations,
including but not limited to, incremental quarantine-related
absenteeism, incremental facility cleaning costs, pandemic- related
supplies and personal protective equipment for employees, among
other costs; offset by economic relief provided by foreign
governments.
|
b.
|
Represents "Equity in
net loss of unconsolidated affiliates" and the portion of our
nonrefundable prepaid research and development costs advanced to an
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 the unconsolidated
affiliate.
|
RECONCILIATION OF
LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP)
TO
|
NET DEBT
(NON-GAAP)
|
(Unaudited)
|
|
(In
Millions)
|
June 30,
2021
|
|
December 31,
2020
|
Long-term debt (GAAP)
(a)
|
$
|
239.7
|
|
|
$
|
274.6
|
|
Less: Cash and cash
equivalents (GAAP)
|
(216.6)
|
|
|
(11.6)
|
|
Net debt
(Non-GAAP) (1)
|
$
|
23.1
|
|
|
$
|
263.0
|
|
___________________
|
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, 2021
and December 31, 2020, the Company had no debt maturing within one
year.
|
LIVENT
CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
(In
Millions)
|
June 30,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
|
216.6
|
|
|
$
|
11.6
|
|
Trade receivables,
net of allowance of $0.4 in 2021 and $0.4 in 2020
|
83.7
|
|
|
76.3
|
|
Inventories,
net
|
105.3
|
|
|
105.6
|
|
Prepaid and other
current assets
|
44.0
|
|
|
56.3
|
|
Total current
assets
|
449.6
|
|
|
249.8
|
|
Property, plant and
equipment, net of accumulated depreciation of $234.1 in 2021
and $222.4 in 2020
|
573.6
|
|
|
545.3
|
|
Investments
|
24.2
|
|
|
23.8
|
|
Right of use assets -
operating leases, net
|
6.8
|
|
|
16.1
|
|
Deferred income
taxes
|
16.5
|
|
|
13.4
|
|
Other
assets
|
81.8
|
|
|
88.4
|
|
Total
assets
|
$
|
1,152.5
|
|
|
$
|
936.8
|
|
|
|
|
|
Accounts payable,
trade and other
|
$
|
47.7
|
|
|
$
|
43.9
|
|
Accrued customer
rebates
|
—
|
|
|
0.3
|
|
Accrued and other
current liabilities
|
31.4
|
|
|
38.1
|
|
Income
taxes
|
0.7
|
|
|
—
|
|
Total current
liabilities
|
79.8
|
|
|
82.3
|
|
Long-term debt, less
current portion
|
239.7
|
|
|
274.6
|
|
Operating lease
liabilities - long-term
|
5.8
|
|
|
14.8
|
|
Long-term
liabilities
|
30.1
|
|
|
28.9
|
|
Total
equity
|
797.1
|
|
|
536.2
|
|
Total liabilities
and equity
|
$
|
1,152.5
|
|
|
$
|
936.8
|
|
LIVENT
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
(In
Millions)
|
2021
|
|
2020
|
Cash
provided/(required) by operating activities
|
$
|
30.6
|
|
|
$
|
(0.3)
|
|
Cash required by
investing activities
|
(42.7)
|
|
|
(89.9)
|
|
Cash provided by
financing activities
|
216.9
|
|
|
90.9
|
|
Effect of exchange
rate changes on cash
|
0.2
|
|
|
(0.3)
|
|
Increase in cash and
cash equivalents
|
205.0
|
|
|
0.4
|
|
Cash and cash
equivalents, beginning of year
|
11.6
|
|
|
16.8
|
|
Cash and cash
equivalents, end of period
|
$
|
216.6
|
|
|
$
|
17.2
|
|
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