PHILADELPHIA, Feb. 17,
2022 /PRNewswire/ --
-- Strong Quarter with Full Year 2021 Results
at the Top of Guidance --
-- 2022 Adjusted EBITDA
Guidance Almost Three-Times 2021 at the High End of Range
--
-- Announces New 20,000
MT Lithium Carbonate Expansion in Argentina --
Livent Corporation (NYSE: LTHM) today reported results for the
fourth quarter of 2021.
Revenue was $122.9 million, up 19%
from the third quarter of 2021 and 50% higher compared to the prior
year. Reported GAAP net income was $7.5 million, or 4
cents per diluted share. Adjusted EBITDA was
$27.5 million and adjusted earnings
per share were 8 cents per diluted
share. Continued improvement in market conditions and record
customer demand in the fourth quarter supported increased prices,
which more than offset the impact of higher costs from inflationary
pressures and continued global supply chain disruptions.
For the full year, Livent reported revenue of $420.4 million, a 46% improvement versus the
prior year. GAAP net income was $0.6
million, or 0 cents per
diluted share. Full year Adjusted EBITDA was $69.5 million, and adjusted earnings per share
were 18 cents per diluted
share.
"Lithium demand growth was strong throughout 2021 and has
continued to grow in 2022," said Paul
Graves, president and chief executive officer of
Livent. "Published lithium prices in all forms rose to record
setting levels in January, and we continue to realize significantly
higher prices across our entire portfolio."
Capacity Expansion
Livent has begun engineering work on a second capacity expansion
program, which will contribute an additional 20,000 metric tons of
lithium carbonate capacity in Argentina. Following this
expansion, which is expected to be complete before the end of 2025,
Livent's operations in Argentina
will have total annual lithium carbonate capacity of 60,000 metric
tons, as well as 9,000 metric tons of lithium chloride
capacity. Recognizing the importance of responsible and
sustainable lithium extraction, this expansion will implement
technologies that significantly reduce water use intensity across
both our future and existing operations in Argentina.
Livent remains on schedule to deliver its previously announced
capacity expansions. Within the next twelve months, Livent
will add capacity of 5,000 metric tons of lithium hydroxide in
Bessemer City and 10,000 metric tons of lithium carbonate in
Argentina. An additional 10,000 metric tons of lithium
carbonate capacity will be added in Argentina by the end of 2023, which will
nearly double Livent's total available
LCEs (1) from 2021 levels.
"We continue to make substantial progress on all of our
expansion projects," continued Graves. "Our customers are
extremely focused on securing reliable lithium volumes needed for
their own growth plans, and we will continue to invest in
increasing our capacity to support them."
Sustainability
Livent recently announced that it has been awarded 2021 Gold
status for sustainability performance by EcoVadis. This is the
second consecutive year the company has achieved a Gold
sustainability rating and places Livent in the top 5% of the more
than 85,000 companies assessed by EcoVadis around the world.
Additionally, Livent began a voluntary third-party assessment using
the Standard for Responsible Mining from the Initiative for
Responsible Mining Assurance (IRMA). With the
commencement of the assessment, Livent is the first company with
mining operations in Argentina,
and one of the first lithium mining companies in the world, to
become a full member of IRMA.
Guidance and Outlook (2)
Livent expects a meaningful improvement in 2022 financial
performance. For the full year, Livent projects revenue to be
in the range of $540 million to
$600 million and Adjusted EBITDA to
be in the range of $160 million to
$200 million, representing growth of
36% and 159%, respectively, at the midpoints versus the prior
year. This guidance is based on total volumes sold being flat
with 2021 levels, significantly higher average realized prices and
higher anticipated costs related to logistics, raw materials and
general inflationary pressures.
($
million)
|
FY 2022
Guidance
|
FY 2021
Results
|
YoY
Growth
|
Revenue
|
540 – 600
|
420
|
Up 28% –
43%
|
Adjusted
EBITDA
|
160 – 200
|
70
|
Up 130% –
188%
|
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 has a combined workforce of
approximately 1,100 full-time, part-time, temporary, and contract
employees 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; increased supply chain
disruptions in the electric vehicle manufacturing industry;
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; increases in the price of
energy and raw materials or broader global inflationary pressures;
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 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.
- Lithium Carbonate Equivalents.
- Although we provide a forecast for Adjusted EBITDA, 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
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in millions, except per share data)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
$
122.9
|
|
$
82.2
|
|
$
420.4
|
|
$
288.2
|
Costs of
sales
|
86.5
|
|
73.0
|
|
332.0
|
|
251.4
|
Gross
margin
|
36.4
|
|
9.2
|
|
88.4
|
|
36.8
|
Selling, general and
administrative expenses
|
15.7
|
|
13.5
|
|
49.9
|
|
44.6
|
Research and
development expenses
|
0.8
|
|
0.9
|
|
3.0
|
|
3.7
|
Restructuring and
other charges
|
0.4
|
|
0.6
|
|
3.8
|
|
10.7
|
Separation-related
costs/(income)
|
0.7
|
|
(1.9)
|
|
2.0
|
|
(1.1)
|
Total costs and
expenses
|
104.1
|
|
86.1
|
|
390.7
|
|
309.3
|
Income/(loss) from
operations before loss on debt extinguishment,
equity in net loss of unconsolidated affiliates and interest
expense, net
|
18.8
|
|
(3.9)
|
|
29.7
|
|
(21.1)
|
Loss on debt
extinguishment
|
—
|
|
—
|
|
—
|
|
0.1
|
Equity in net loss of
unconsolidated affiliates
|
1.8
|
|
0.1
|
|
5.5
|
|
0.5
|
Interest expense,
net
|
—
|
|
—
|
|
0.3
|
|
0.3
|
Income/(loss) from
operations before income taxes
|
17.0
|
|
(4.0)
|
|
23.9
|
|
(22.0)
|
Income tax
expense/(benefit)
|
9.5
|
|
(0.3)
|
|
23.3
|
|
(5.7)
|
Net
income/(loss)
|
$
7.5
|
|
$
(3.7)
|
|
$
0.6
|
|
$
(16.3)
|
Net income/(loss) per
weighted average share - basic
|
$
0.05
|
|
$
(0.03)
|
|
$
—
|
|
$
(0.11)
|
Net income/(loss) per
weighted average share - diluted
|
$
0.04
|
|
$
(0.03)
|
|
$
—
|
|
$
(0.11)
|
Weighted average
common shares outstanding - basic
|
161.7
|
|
146.3
|
|
154.7
|
|
146.2
|
Weighted average
common shares outstanding - diluted
|
191.6
|
|
146.3
|
|
184.3
|
|
146.2
|
LIVENT
CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
RECONCILIATION OF
NET INCOME/(LOSS) TO EBITDA (NON-GAAP) AND ADJUSTED EBITDA
(NON-GAAP)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
(In
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
income/(loss)
|
$
7.5
|
|
$
(3.7)
|
|
$
0.6
|
|
$
(16.3)
|
Add back:
|
|
|
|
|
|
|
|
Interest expense,
net
|
—
|
|
—
|
|
0.3
|
|
0.3
|
Income tax
expense/(benefit)
|
9.5
|
|
(0.3)
|
|
23.3
|
|
(5.7)
|
Depreciation and
amortization
|
6.4
|
|
7.3
|
|
25.1
|
|
25.0
|
EBITDA (Non-GAAP)
(1)
|
23.4
|
|
3.3
|
|
49.3
|
|
3.3
|
Add back:
|
|
|
|
|
|
|
|
Argentina
remeasurement losses (a)
|
1.1
|
|
2.2
|
|
5.3
|
|
6.6
|
Restructuring and
other charges (b)
|
0.4
|
|
0.6
|
|
3.8
|
|
10.7
|
Separation-related
costs/(income) (c)
|
0.7
|
|
(1.9)
|
|
2.0
|
|
(1.1)
|
COVID-19 related
costs (d)
|
1.0
|
|
1.5
|
|
5.2
|
|
3.2
|
Loss on debt
extinguishment (e)
|
—
|
|
—
|
|
—
|
|
0.1
|
Other loss/(gain)
(f)
|
0.9
|
|
(0.1)
|
|
3.9
|
|
(0.5)
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
27.5
|
|
$
5.6
|
|
$
69.5
|
|
$
22.3
|
___________________
|
1.
|
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 Argentina
remeasurement losses, restructuring and other charges,
separation-related costs/(income), COVID-19 related costs and other
loss/(gain). 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. These measures 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 losses
are included within "Cost of sales" in our 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. 2021 Restructuring and other charges consisted
primarily of environmental remediation, transaction related legal
fees and miscellaneous nonrecurring costs. 2020 consists of
severance-related costs related to management changes, exit costs,
and legal fees related to IPO securities litigation, including a
settlement accrual, net of insurance reimbursement, of
$2.0 million as of December 31, 2020. The IPO litigation
settlement was finalized in the second quarter of 2021.
|
|
|
c.
|
Represents legal and
professional fees and other separation-related activity.
|
|
|
d.
|
Represents
incremental costs associated with COVID-19 recorded in "Cost of
sales" in the consolidated statements 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 of the Revolving Credit Facility
excluded from our calculation of Adjusted EBITDA because the loss
is nonrecurring.
|
|
|
f.
|
2021 represents our
25% 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 consolidated statement of operations. 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 twelve months ended December 31, 2020 when
the costs were incurred at the unconsolidated affiliate.
|
RECONCILIATION OF
NET INCOME/(LOSS) TO ADJUSTED AFTER-TAX EARNINGS/(LOSS)
(NON-GAAP)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
(In Millions,
except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
income/(loss)
|
$
7.5
|
|
$
(3.7)
|
|
$
0.6
|
|
$
(16.3)
|
Nonrecurring
charges/(income):
|
|
|
|
|
|
|
|
Argentina
remeasurement losses(a)
|
1.1
|
|
2.2
|
|
5.3
|
|
6.6
|
Restructuring and
other charges (b)
|
0.4
|
|
0.6
|
|
3.8
|
|
10.7
|
Separation-related
costs/(income) (c)
|
0.7
|
|
(1.9)
|
|
2.0
|
|
(1.1)
|
COVID-19 related costs
(d)
|
1.0
|
|
1.5
|
|
5.2
|
|
3.2
|
Loss on debt
extinguishment (e)
|
—
|
|
—
|
|
—
|
|
0.1
|
Other loss/(gain)
(f)
|
0.9
|
|
(0.1)
|
|
3.9
|
|
(0.5)
|
Non-GAAP tax
adjustments (h)
|
4.0
|
|
(0.5)
|
|
12.7
|
|
(8.0)
|
Adjustment for
interest, net of tax, on 2025 Notes assumed converted
(g)
|
—
|
|
—
|
|
0.2
|
|
—
|
Adjusted after-tax
earnings/(loss) (Non-GAAP) (1)
|
$
15.6
|
|
$
(1.9)
|
|
$
33.7
|
|
$
(5.3)
|
|
|
|
|
|
|
|
|
Diluted
earnings/(loss) per common share
|
$
0.04
|
|
$
(0.03)
|
|
$
—
|
|
$
(0.11)
|
Nonrecurring
charges/(income) per diluted share, before tax:
|
|
|
|
|
|
|
|
Argentina
remeasurement losses, per diluted share
|
0.01
|
|
0.02
|
|
0.03
|
|
0.05
|
Restructuring and
other charges, per diluted share
|
—
|
|
—
|
|
0.02
|
|
0.07
|
Separation-related
(income)/costs, per diluted share
|
—
|
|
(0.01)
|
|
0.01
|
|
(0.01)
|
COVID-19 related
costs, per diluted share
|
0.01
|
|
0.01
|
|
0.03
|
|
0.02
|
Other loss, per
diluted share
|
—
|
|
—
|
|
0.02
|
|
—
|
Non-GAAP tax
adjustments per diluted share
|
0.02
|
|
—
|
|
0.07
|
|
(0.06)
|
Diluted adjusted
after-tax earnings/(loss) per share (Non-GAAP)
(1)
|
$
0.08
|
|
$
(0.01)
|
|
$
0.18
|
|
$
(0.04)
|
Weighted average
number of shares outstanding used in diluted adjusted
after-tax earnings/(loss) per share computations
(Non-GAAP)
|
191.6
|
|
146.3
|
|
184.3
|
|
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/(loss) excludes the effects of nonrecurring
charges/(income) 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. Diluted adjusted after-tax earnings/(loss) per share
(Non-GAAP) is calculated using weighted average common shares
outstanding - diluted.
|
|
|
a.
|
Represents charges
related to 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
losses are included within "Cost of sales" in our 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. 2021 Restructuring and other charges consisted
primarily of environmental remediation, transaction related legal
fees and miscellaneous nonrecurring costs.2020 consists of
severance-related costs related to management changes, exit costs,
and legal fees related to IPO securities litigation, including a
settlement accrual, net of insurance reimbursement, of
$2.0 million as of December 31, 2020. The IPO litigation
settlement was finalized in the second quarter of 2021.
|
|
|
c.
|
Represents legal and
professional fees and other separation-related activity.
|
|
|
d.
|
Represents
incremental costs associated with COVID-19 recorded in "Cost of
sales" in the 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 of the Revolving Credit Facility
excluded from our calculation of Adjusted EBITDA because the loss
is nonrecurring.
|
|
|
f.
|
2021 represents our
25% 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 consolidated statement of operations. 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 twelve months ended December 31, 2020 when
the costs were incurred at the unconsolidated affiliate.
|
|
|
g.
|
For the three and
twelve months ended December 31, 2021, $2.9 million and
$11.4 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 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
|
|
Twelve Months
Ended
|
|
December
31,
|
|
December
31,
|
(in
Millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
Income tax benefit on
restructuring, separation-related and other corporate
costs
|
$
(0.7)
|
|
$
0.4
|
|
$
(2.7)
|
|
$
(2.5)
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
0.5
|
|
0.6
|
|
0.9
|
|
1.0
|
Foreign currency
remeasurement and other discrete items (1)
|
5.1
|
|
(2.3)
|
|
16.8
|
|
(8.0)
|
Other discrete
items
|
(0.9)
|
|
0.8
|
|
(2.3)
|
|
1.5
|
Total Non-GAAP tax
adjustments
|
$
4.0
|
|
$
(0.5)
|
|
$
12.7
|
|
$
(8.0)
|
______________________
|
1.
|
Three and twelve
months ended December 31, 2021 includes $7.3 million and $22.1
million income tax expense, respectively, relating to an adjustment
for inflation in Argentina.
|
RECONCILIATION OF
CASH PROVIDED BY OPERATING ACTIVITIES TO ADJUSTED CASH FROM
OPERATIONS (NON-GAAP)
(Unaudited)
|
|
|
Twelve Months
Ended
|
|
December
31,
|
(In
Millions)
|
2021
|
|
2020
|
Cash provided by
operating activities
|
$
26.4
|
|
$
6.3
|
Restructuring and
other charges
|
5.3
|
|
7.4
|
Separation-related
costs/(income)
|
2.0
|
|
(0.8)
|
COVID-19 related costs
(a)
|
5.2
|
|
3.2
|
Other loss
(b)
|
—
|
|
(1.0)
|
Adjusted cash from
operations (Non-GAAP) (1)
|
$
38.9
|
|
$
15.1
|
___________________
|
1.
|
The company believes
that the Non-GAAP financial measure "Adjusted cash from operations"
provides useful information about the company's cash flows to
investors and securities analysts. Adjusted cash from 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 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 provided by investing activities" (GAAP) in our 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)
|
December 31,
2021
|
|
December 31,
2020
|
Long-term debt (GAAP)
(a)
|
$
240.4
|
|
$
274.6
|
Less: Cash and cash
equivalents (GAAP)
|
(113.0)
|
|
(11.6)
|
Net debt
(Non-GAAP) (1)
|
$
127.4
|
|
$
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
December 31, 2021 and 2020, the Company had no debt maturing
within one
year.
|
LIVENT
CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(In
Millions)
|
December 31,
2021
|
|
December 31,
2020
|
Cash and cash
equivalents
|
$
113.0
|
|
$
11.6
|
Trade receivables,
net of allowance of approximately $0.3 in 2021 and $0.4 in
2020
|
96.4
|
|
76.3
|
Inventories
|
134.6
|
|
105.6
|
Other current
assets
|
55.3
|
|
56.3
|
Total current
assets
|
399.3
|
|
249.8
|
Investments
|
27.2
|
|
23.8
|
Property, plant and
equipment, net of accumulated depreciation of $243.0 in 2021
and $222.4 in 2020
|
677.9
|
|
545.3
|
Right of use assets -
operating leases, net
|
6.3
|
|
16.1
|
Deferred income
taxes
|
0.9
|
|
13.4
|
Other
assets
|
90.9
|
|
88.4
|
Total
assets
|
$
1,202.5
|
|
$
936.8
|
|
|
|
|
Accounts payable,
trade and other
|
$
65.4
|
|
$
43.9
|
Other current
liabilities
|
65.9
|
|
38.4
|
Total current
liabilities
|
131.3
|
|
82.3
|
Long-term
debt
|
240.4
|
|
274.6
|
Long-term
liabilities
|
35.4
|
|
43.7
|
Equity
|
795.4
|
|
536.2
|
Total liabilities
and equity
|
$
1,202.5
|
|
$
936.8
|
LIVENT
CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Twelve Months
Ended December 31,
|
(In
Millions)
|
2021
|
|
2020
|
Cash provided by
operating activities
|
$
26.4
|
|
$
6.3
|
Cash used in
investing activities
|
(143.3)
|
|
(131.1)
|
Cash provided by
financing activities
|
218.0
|
|
119.1
|
Effect of exchange
rate changes on cash
|
0.3
|
|
0.5
|
Increase/(decrease)
in cash and cash equivalents
|
101.4
|
|
(5.2)
|
Cash and cash
equivalents, beginning of period
|
11.6
|
|
16.8
|
Cash and cash
equivalents, end of period
|
$
113.0
|
|
$
11.6
|
|
|
|
|
|
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