PHILADELPHIA, Nov. 4, 2021 /PRNewswire/ --
-- Strong Market Conditions Drove Higher
Pricing and Demand --
-- Logistics Disruptions Continue
to Impact Lithium Supply Chains --
-- Carbonate and
Hydroxide Expansions Remain on Track --
-- Increasing
Full Year Guidance --
Livent Corporation (NYSE: LTHM) today reported results for the
third quarter of 2021.
Revenue was $103.6 million, up 1%
from the second quarter of 2021 and 43% higher versus the prior
year. Reported GAAP net loss was $12.6
million, or a loss of 8 cents
per diluted share. Adjusted EBITDA was $14.9 million and adjusted earnings per share
were 3 cents per diluted share.
Third quarter performance was in line with the second
quarter. Continued improvement in market conditions supported
higher pricing and demand. Higher realized prices were offset
by higher costs and the impact of global supply chain
disruptions. By the end of the third quarter, a large portion
of Livent's 2021 volume commitments to customers, where pricing was
set in 2020 or earlier, had been fulfilled, increasing Livent's
ability to take advantage of higher prices in the remainder of the
year.
"The strong growth in lithium demand that we saw in the first
half of 2021 shows no signs of abating. Published and
contracted prices for lithium in all forms pushed even higher in
the third quarter, driven by multiple factors," said Paul Graves, president and chief executive
officer of Livent.
Key Recent Developments
Livent remains on track to deliver its near-term capacity
expansions, with the 5,000 metric ton hydroxide addition in
Bessemer City and initial lithium carbonate expansion of 10,000
metric tons in Argentina expected
to reach commercial production by the third quarter of 2022 and the
first quarter of 2023, respectively. The phase 2 carbonate
expansion for an additional 10,000 metric tons is scheduled to be
in commercial production by the end of 2023.
Livent also continued to make progress on important
sustainability initiatives that will help to achieve its 2030 and
2040 sustainability goals. This includes work on process
efficiency and renewable energy opportunities; a TCFD-based
analysis of the company's risks and opportunities related to
climate change; and various projects to advance responsible lithium
extraction in South America. In addition, prior to the United
Nations conference on climate change (COP
26), Livent committed to the UN's Race to Zero initiative
and the Business Ambition for 1.5°C campaign.
Guidance and Outlook (1)
Livent is increasing its full year 2021 guidance ranges for
Revenue and Adjusted EBITDA. This increase is driven by a
stronger fourth quarter, with higher anticipated realized pricing
and a more favorable mix. At the midpoints, the new revenue
guidance implies nearly 40% growth and Adjusted EBITDA would be
roughly three times higher than last year's results. Livent's
2021 total capital spending estimate of $125
million remains unchanged, with the expected increase in
fourth quarter spending related to the timing of cash outflows on
work already completed.
|
($
million)
|
Revised Full Year
2021E
|
Prior Full Year
2021E
|
|
Revenue
|
390 -
410
|
370 –
390
|
|
Adjusted
EBITDA
|
62 -
72
|
55 -
70
|
"We expect current market conditions to persist, and possibly
strengthen further, through the end of 2022," continued Graves.
"While we are still concluding our 2022 contracting
processes, we expect realized price improvement versus 2021.
Given the supply-demand tightness that is a major factor behind
rising prices, we are seeing an increased focus from customers on
securing reliable lithium volumes to support their own growth
plans."
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 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
September 30,
|
|
Nine Months Ended
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Revenue
|
$
|
103.6
|
|
|
$
|
72.6
|
|
|
$
|
297.5
|
|
|
$
|
206.0
|
|
|
Costs of
sales
|
85.3
|
|
|
69.8
|
|
|
245.5
|
|
|
178.4
|
|
|
Gross
margin
|
18.3
|
|
|
2.8
|
|
|
52.0
|
|
|
27.6
|
|
|
Selling, general and
administrative expenses
|
11.8
|
|
|
10.0
|
|
|
34.2
|
|
|
31.1
|
|
|
Research and
development expenses
|
0.8
|
|
|
1.0
|
|
|
2.2
|
|
|
2.8
|
|
|
Restructuring and
other charges
|
1.1
|
|
|
4.4
|
|
|
3.4
|
|
|
10.1
|
|
|
Separation-related
costs
|
0.8
|
|
|
0.6
|
|
|
1.3
|
|
|
0.8
|
|
|
Total costs and
expenses
|
99.8
|
|
|
85.8
|
|
|
286.6
|
|
|
223.2
|
|
|
Income/(loss) from
operations before loss on debt extinguishment, equity in net loss
of unconsolidated affiliates and interest expense, net
|
3.8
|
|
|
(13.2)
|
|
|
10.9
|
|
|
(17.2)
|
|
|
Loss on debt
extinguishment
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Equity in net loss of
unconsolidated affiliates
|
1.0
|
|
|
0.1
|
|
|
3.7
|
|
|
0.4
|
|
|
Interest expense,
net
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
Income/(loss) from
operations before income taxes
|
2.8
|
|
|
(13.6)
|
|
|
6.9
|
|
|
(18.0)
|
|
|
Income tax
expense/(benefit)
|
15.4
|
|
|
(3.1)
|
|
|
13.8
|
|
|
(5.4)
|
|
|
Net loss
|
$
|
(12.6)
|
|
|
$
|
(10.5)
|
|
|
$
|
(6.9)
|
|
|
$
|
(12.6)
|
|
|
Net loss per weighted
average share - basic and diluted
|
$
|
(0.08)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.09)
|
|
|
Weighted average
common shares outstanding - basic and diluted
|
161.6
|
|
|
146.3
|
|
|
152.3
|
|
|
146.2
|
|
|
LIVENT
CORPORATION
|
|
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
|
|
|
RECONCILIATION OF
NET LOSS (GAAP) TO ADJUSTED EBITDA (NON-GAAP)
|
|
(Unaudited)
|
|
|
The table below
provides a reconciliation of Net loss to Adjusted
EBITDA.
|
|
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net loss
(GAAP)
|
$
|
(12.6)
|
|
|
$
|
(10.5)
|
|
|
$
|
(6.9)
|
|
|
$
|
(12.6)
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
—
|
|
|
0.3
|
|
|
0.3
|
|
|
0.3
|
|
|
Income tax
expense/(benefit)
|
15.4
|
|
|
(3.1)
|
|
|
13.8
|
|
|
(5.4)
|
|
|
Depreciation and
amortization
|
6.2
|
|
|
6.1
|
|
|
18.7
|
|
|
17.7
|
|
|
EBITDA (Non-GAAP)
(1)
|
9.0
|
|
|
(7.2)
|
|
|
25.9
|
|
|
—
|
|
|
Add back:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses (a)
|
0.9
|
|
|
1.5
|
|
|
4.2
|
|
|
4.4
|
|
|
Restructuring and
other charges (b)
|
1.1
|
|
|
4.4
|
|
|
3.4
|
|
|
10.1
|
|
|
Separation-related
costs (c)
|
0.8
|
|
|
0.6
|
|
|
1.3
|
|
|
0.8
|
|
|
COVID-19 related
costs (d)
|
1.9
|
|
|
1.7
|
|
|
4.2
|
|
|
1.7
|
|
|
Loss on debt
extinguishment (e)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Other gain/(loss)
(f)
|
1.2
|
|
|
(0.1)
|
|
|
3.0
|
|
|
(0.4)
|
|
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
|
14.9
|
|
|
$
|
0.9
|
|
|
$
|
42.0
|
|
|
$
|
16.7
|
|
|
___________________
|
|
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 nine months
ended September 30, 2020 includes legal fees related to IPO
securities litigation including a settlement accrual, net of
insurance reimbursement, of $2.5 million in the third quarter. The
IPO litigation settlement was finalized in the second quarter of
2021.
|
|
|
|
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 nine months
ended September 30, 2021 represents our 25% indirect interest
in transaction costs incurred for the Nemaska Transaction, certain
project-related costs and interest expense, all included in Equity
in net loss of unconsolidated affiliates in our condensed
consolidated statement of operations. Three and nine months ended
September 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 nine months ended September 30, 2020 when the costs
were incurred at the unconsolidated affiliate.
|
|
RECONCILIATION OF
NET LOSS (GAAP) TO
|
|
ADJUSTED AFTER-TAX
EARNINGS/(LOSS) (NON-GAAP)
|
|
(Unaudited)
|
|
|
(in Millions,
Except Per Share Data)
|
Three Months Ended
September 30,
|
|
Nine Months Ended
September 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Net loss
(GAAP)
|
$
|
(12.6)
|
|
|
$
|
(10.5)
|
|
|
$
|
(6.9)
|
|
|
$
|
(12.6)
|
|
|
Special
charges:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses (a)
|
0.9
|
|
|
1.5
|
|
|
4.2
|
|
|
4.4
|
|
|
Restructuring and
other charges (b)
|
1.1
|
|
|
4.4
|
|
|
3.4
|
|
|
10.1
|
|
|
Separation-related
costs (c)
|
0.8
|
|
|
0.6
|
|
|
1.3
|
|
|
0.8
|
|
|
COVID-19 related costs
(d)
|
1.9
|
|
|
1.7
|
|
|
4.2
|
|
|
1.7
|
|
|
Loss on debt
extinguishment (e)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.1
|
|
|
Other gain/(loss)
(f)
|
1.2
|
|
|
(0.1)
|
|
|
3.0
|
|
|
(0.4)
|
|
|
Non-GAAP tax
adjustments (h)
|
13.4
|
|
|
(3.7)
|
|
|
8.7
|
|
|
(7.4)
|
|
|
Adjustment for
interest, net of tax, on 2025 Notes assumed converted (Non-GAAP)
(g)
|
—
|
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
Adjusted after-tax
earnings/(loss) (Non-GAAP) (1)
|
$
|
6.7
|
|
|
$
|
(6.1)
|
|
|
$
|
18.1
|
|
|
$
|
(3.3)
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
common share (GAAP)
|
$
|
(0.08)
|
|
|
$
|
(0.07)
|
|
|
$
|
(0.05)
|
|
|
$
|
(0.09)
|
|
|
Special charges per
diluted share, before tax:
|
|
|
|
|
|
|
|
|
Certain Argentina
remeasurement losses, per diluted share
|
—
|
|
|
0.01
|
|
|
0.02
|
|
|
0.03
|
|
|
Restructuring and
other charges, per diluted share
|
0.02
|
|
|
0.03
|
|
|
0.02
|
|
|
0.07
|
|
|
Separation-related
costs, per diluted share
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
COVID-19 related
costs, per diluted share
|
0.01
|
|
|
0.01
|
|
|
0.02
|
|
|
0.01
|
|
|
Other gain, per
diluted share
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
|
Non-GAAP tax
adjustments, per diluted share
|
0.06
|
|
|
(0.02)
|
|
|
0.05
|
|
|
(0.05)
|
|
|
Diluted adjusted
after-tax earnings/(loss) per share (Non-GAAP)
(1)
|
$
|
0.03
|
|
|
$
|
(0.04)
|
|
|
$
|
0.09
|
|
|
$
|
(0.02)
|
|
|
Weighted average
common shares outstanding - diluted (Non-GAAP) used in diluted
adjusted after-tax earnings/(loss) per share
computations
|
208.4
|
|
|
146.3
|
|
|
197.7
|
|
|
146.2
|
|
|
____________________
|
|
1.
|
The Company believes
that the Non-GAAP financial measures "Adjusted after-tax
earnings/(loss)" and "Diluted adjusted after-tax earnings/(loss)
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 nine months
ended September 30, 2020 includes legal fees related to IPO
securities litigation including a settlement accrual, net of
insurance reimbursement, of $2.5 million in the third quarter. The
IPO litigation settlement was finalized in the second quarter of
2021.
|
|
|
|
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 nine months
ended September 30, 2021 represents our 25% indirect interest
in transaction costs incurred for the Nemaska Transaction, certain
project-related costs and interest expense, all included in Equity
in net loss of unconsolidated affiliates in our condensed
consolidated statement of operations. Three and nine months ended
September 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 nine months ended September 30, 2020 when the costs
were incurred at the unconsolidated affiliate.
|
|
|
|
g.
|
For the three and
nine months ended September 30, 2021, $2.9 million and
$8.5 million of the interest on the 2025 Notes was
capitalized, respectively.
|
|
|
|
h.
|
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
September 30,
|
|
Nine Months Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
|
Income tax benefit on
restructuring, separation-related and other corporate
costs
|
$
|
(0.9)
|
|
|
$
|
(1.5)
|
|
|
$
|
(2.0)
|
|
|
$
|
(2.8)
|
|
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
—
|
|
|
(0.2)
|
|
|
0.4
|
|
|
0.4
|
|
|
Foreign currency
remeasurement and other discrete items (1)
|
12.9
|
|
|
(2.0)
|
|
|
11.7
|
|
|
(5.7)
|
|
|
Other discrete
items
|
1.4
|
|
|
—
|
|
|
(1.4)
|
|
|
0.7
|
|
|
Total Non-GAAP tax
adjustments
|
$
|
13.4
|
|
|
$
|
(3.7)
|
|
|
$
|
8.7
|
|
|
$
|
(7.4)
|
|
|
___________________
|
|
1.
|
Three and nine months
ended September 30, 2021 includes $14.8 million income tax
expense relating to an adjustment for inflation in
Argentina.
|
|
RECONCILIATION OF
CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) TO
|
|
ADJUSTED CASH
PROVIDED BY OPERATIONS (NON-GAAP)
|
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
Cash provided by
operating activities (GAAP)
|
$
|
41.0
|
|
|
$
|
1.5
|
|
|
Restructuring and
other charges
|
4.2
|
|
|
5.8
|
|
|
Separation-related
activities
|
1.4
|
|
|
0.7
|
|
|
COVID-19 related costs
(a)
|
4.2
|
|
|
1.7
|
|
|
Other
(b)
|
—
|
|
|
(0.8)
|
|
|
Adjusted cash
provided by operations (Non-GAAP) (1)
|
$
|
50.8
|
|
|
$
|
8.9
|
|
|
_____________________
|
|
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, COVID-19 testing,
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 used in 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)
|
September 30,
2021
|
|
December 31,
2020
|
|
Long-term debt (GAAP)
(a)
|
$
|
240.1
|
|
|
$
|
274.6
|
|
|
Less: Cash and cash
equivalents (GAAP)
|
(195.3)
|
|
|
(11.6)
|
|
|
Net debt
(Non-GAAP) (1)
|
$
|
44.8
|
|
|
$
|
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
September 30, 2021 and December 31, 2020, the Company had no
debt maturing within one year.
|
|
LIVENT
CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
|
(in
Millions)
|
September 30,
2021
|
|
December 31,
2020
|
|
Cash and cash
equivalents
|
$
|
195.3
|
|
|
$
|
11.6
|
|
|
Trade receivables,
net of allowance of $0.3 and $0.4, respectively
|
83.0
|
|
|
76.3
|
|
|
Inventories,
net
|
110.2
|
|
|
105.6
|
|
|
Prepaid and other
current assets
|
43.8
|
|
|
56.3
|
|
|
Total current
assets
|
432.3
|
|
|
249.8
|
|
|
Property, plant and
equipment, net of accumulated depreciation of $238.3 and $222.4,
respectively
|
605.3
|
|
|
545.3
|
|
|
Investments
|
23.2
|
|
|
23.8
|
|
|
Right of use assets -
operating leases, net
|
6.4
|
|
|
16.1
|
|
|
Deferred income
taxes
|
2.2
|
|
|
13.4
|
|
|
Other
assets
|
81.6
|
|
|
88.4
|
|
|
Total
assets
|
$
|
1,151.0
|
|
|
$
|
936.8
|
|
|
|
|
|
|
Accounts payable,
trade and other
|
$
|
49.7
|
|
|
$
|
43.9
|
|
|
Accrued customer
rebates
|
—
|
|
|
0.3
|
|
|
Accrued and other
current liabilities
|
36.7
|
|
|
38.1
|
|
|
Income
taxes
|
2.3
|
|
|
—
|
|
|
Total current
liabilities
|
88.7
|
|
|
82.3
|
|
|
Long-term debt, less
current portion
|
240.1
|
|
|
274.6
|
|
|
Operating lease
liabilities - long-term
|
5.5
|
|
|
14.8
|
|
|
Long-term
liabilities
|
32.2
|
|
|
28.9
|
|
|
Total
equity
|
784.5
|
|
|
536.2
|
|
|
Total liabilities
and equity
|
$
|
1,151.0
|
|
|
$
|
936.8
|
|
|
LIVENT
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
Nine Months Ended
September 30,
|
|
(in
Millions)
|
2021
|
|
2020
|
|
Cash provided by
operating activities
|
$
|
41.0
|
|
|
$
|
1.5
|
|
|
Cash used in
investing activities
|
(74.3)
|
|
|
(111.8)
|
|
|
Cash provided by
financing activities
|
216.9
|
|
|
108.2
|
|
|
Effect of exchange
rate changes on cash
|
0.1
|
|
|
0.1
|
|
|
Increase/(decrease)
in cash and cash equivalents
|
183.7
|
|
|
(2.0)
|
|
|
Cash and cash
equivalents, beginning of period
|
11.6
|
|
|
16.8
|
|
|
Cash and cash
equivalents, end of period
|
$
|
195.3
|
|
|
$
|
14.8
|
|
Media Contact: Juan Carlos
Cruz +1.215.299.6725
Juan.Carlos.Cruz@livent.com
Investor Contact: Daniel
Rosen +1.215.299.6208
Daniel.Rosen@livent.com
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SOURCE Livent Corporation