CHARLOTTE, N.C., Nov. 3, 2021 /PRNewswire/ -- Albemarle
Corporation (NYSE: ALB) today announced its results for the third
quarter ended September 30, 2021.
Third-Quarter 2021 Highlights
(Unless otherwise
stated, all percent changes are based on year-over-year
comparisons)
- Net sales of $830.6 million, an
increase of 11%; Net sales increased 19% excluding FCS
- Net loss of ($392.8) million, or
($3.36) per diluted share
- Adjusted diluted EPS of $1.05, a
decrease of 4%, excludes a $4.29 per
share charge for a recent arbitration decision
- Adjusted EBITDA of $217.6
million, an increase of 1%; Adjusted EBITDA increased 14%
excluding FCS
- Increased FY 2021 guidance based on strong third-quarter
performance
- Announced agreement to acquire Guangxi Tianyuan New Energy
Materials (Tianyuan), which includes a lithium conversion plant
(Qinzhou) designed to produce 25,000 mtpa with the potential to
expand to 50,000 mtpa
- Announced agreements for strategic investments in China with plans to build two lithium
hydroxide conversion plants, each initially targeting 50,000
mtpa
- MARBL Lithium Joint Venture (MARBL) to restart operations at
the Wodgina Lithium Mine in Australia
- Advanced deployment of Albemarle Way of Excellence (AWE)
operating model and submitted sustainability disclosure report to
CDP (formerly the Carbon Disclosure Project)
"Despite supply chain challenges and increased raw material
costs last quarter, we continued to deliver solid revenue and
adjusted EBITDA growth," said Albemarle CEO Kent Masters. "In October, we achieved first
lithium carbonate production at our new La Negra III/IV conversion
facility. We are making investments to add significant conversion
capacity in China, initially
targeting up to 150,000 metric tons of lithium hydroxide per year
which will provide high-return growth opportunities aligned with
the increasing demand from our customers."
Outlook
Albemarle's improved outlook
for full-year 2021 reflects a strong third-quarter performance and
assumes continued global economic recovery as well as a modest
improvement in operating performance compared to full-year 2020.
Full-year 2021 net sales guidance was revised higher which reflects
higher volumes in its Lithium business and stronger pricing in its
Bromine businesses. Adjusted EBITDA guidance improved due to higher
net sales, as well as lower corporate costs and
higher-than-expected Catalysts joint venture income. Capital
expenditures were revised higher due to accelerated investments in
growth, tight labor markets, and COVID-related travel restrictions
in Western Australia.
|
|
FY 2021
Guidance(1)
|
Net sales
|
|
$3.3 - $3.4
billion
|
Adjusted
EBITDA
|
|
$830 - $860
million
|
Adjusted EBITDA
Margin
|
|
~25%
|
Adjusted Diluted
EPS
|
|
$3.85 -
$4.15
|
Net Cash from
Operations
|
|
$550 - $650
million
|
Capital
Expenditures
|
|
$925 - $975
million
|
|
(1)
|
Guidance reflects the
sale of Albemarle's Fine Chemistry Services (FCS) business to W.R.
Grace which closed on June 1, 2021.
|
COVID-19 Response
Albemarle's cross-functional
Global Response Team continues to meet regularly to address
employee health and safety and operational challenges. The
company's priority is always the health and well-being of its
employees, customers, and communities. The company continues to
focus on building in the flexibility needed to adjust for regional
differences and changing conditions.
Third-Quarter Results
In millions,
except per share amounts
|
Q3
2021
|
|
Q3
2020
|
|
$
Change
|
|
%
Change
|
Net sales
|
$
|
830.6
|
|
|
$
|
746.9
|
|
|
$
|
83.7
|
|
|
11.2
|
%
|
Net (loss) income
attributable to Albemarle
Corporation
|
$
|
(392.8)
|
|
|
$
|
98.3
|
|
|
$
|
(491.1)
|
|
|
(499.6)
|
%
|
Adjusted
EBITDA(a)
|
$
|
217.6
|
|
|
$
|
216.1
|
|
|
$
|
1.5
|
|
|
0.7
|
%
|
Diluted earnings per
share
|
$
|
(3.36)
|
|
|
$
|
0.92
|
|
|
$
|
(4.28)
|
|
|
(465.2)
|
%
|
Non-operating pension and OPEB items(a)
|
(0.04)
|
|
|
(0.02)
|
|
|
|
|
|
Non-recurring and other unusual items(a)
|
4.42
|
|
|
0.19
|
|
|
|
|
|
Adjusted diluted
earnings per share(a)(b)
|
$
|
1.05
|
|
|
$
|
1.09
|
|
|
$
|
(0.04)
|
|
|
(3.7)
|
%
|
|
(a)
|
See Non-GAAP
Reconciliations for further details.
|
(b)
|
Totals may not add
due to rounding.
|
Net sales of $830.6 million
increased by $83.7 million compared
to the prior-year quarter, primarily driven by an increase in sales
from the company's Lithium and Bromine businesses, partially offset
by the loss of revenue from its Fine Chemistry Services (FCS)
business which was sold on June 1,
2021.
Adjusted EBITDA of $217.6 million
increased by $1.5 million from the
prior-year quarter primarily due to higher Lithium results,
offset by the sale of FCS and an expense of $13.5 million for the correction of out-of-period
errors regarding misstated inventory foreign exchange values
relating to prior periods.
Net loss attributable to Albemarle of ($392.8)
million includes a $657.4 million ($504.5 million after income taxes) charge related
to a recent arbitration decision on a dispute regarding Huntsman
Corporation's acquisition of Rockwood's Pigments & Additives
business in 2014. The Huntsman-Rockwood dispute is a legacy dispute
that Albemarle inherited when it
purchased all outstanding equity of Rockwood Holdings, Inc. in
2015, acquiring its lithium and other business lines unrelated to
the dispute. The company continues to assess its legal rights and
options. Albemarle and Huntsman
have initiated discussions regarding a resolution of the
matter.
The effective income tax rate for the third quarter of 2021 was
22.2% compared to 25.2% in the same period of 2020. The difference
is largely due to a $152.9 million
tax benefit recorded in Q3 2021 related to an accrual recorded for
a legal arbitration ruling. On an adjusted basis, the effective
income tax rates were 19.2% and 16.7% for the third quarter of 2021
and 2020, respectively.
Business Segment Results
Lithium
In
millions
|
Q3
2021
|
|
Q3
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
359.2
|
|
|
$
|
265.6
|
|
|
$
|
93.6
|
|
|
35.2
|
%
|
Adjusted
EBITDA
|
$
|
125.4
|
|
|
$
|
97.8
|
|
|
$
|
27.6
|
|
|
28.3
|
%
|
Lithium net sales of $359.2
million increased $93.6
million (+35%) primarily due to higher volume (+30%) from
tolling to help meet growing customer demand and higher pricing and
FX (+5%). Adjusted EBITDA of $125.4
million increased $27.6
million primarily due to increased net sales and higher
volume at its Talison joint venture.
Current Trends: Full-year 2021 adjusted EBITDA is
expected to grow in the mid- to high-teens year over year, up from
previous guidance. Volume growth for full-year 2021 is expected to
grow in the mid-teens driven primarily by tolling. Average realized
pricing is expected to increase sequentially due to tightening
market conditions and full-year pricing will be flat to slightly
higher compared to 2020. Full-year 2021 average margin is expected
to remain below 35% due to higher costs related to project
start-ups and tolling, partially offset by productivity
improvements.
Albemarle remains on track to
complete construction of Kemerton I by the end of the year with
sales expected to begin in the second half of 2022. Due to the
ongoing labor shortages and pandemic-related travel restrictions in
Western Australia, Kemerton II is
now expected to complete construction in the second half of
2022.
During the quarter, the company made significant progress on its
Wave 3 lithium expansion projects. Albemarle entered an agreement to acquire
Tianyuan, which owns a lithium conversion plant, Qinzhou, designed
to produce up to 25,000 metric tons per annum and with the
potential to expand to 50,000 metric tons per annum. Additionally,
it entered agreements for strategic investments in China and will move forward with design,
engineering, and permitting plans to build two new lithium
hydroxide conversion plants, each initially targeting 50,000 metric
tons per annum.
Our MARBL joint venture recently announced plans to restart one
of the Wodgina mine's three processing lines, each of which has
installed processing capacity of 250,000 metric tons per annum of
spodumene concentrate. Production is expected to begin in the third
quarter of 2022.
Bromine Specialties
In
millions
|
Q3
2021
|
|
Q3
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
277.8
|
|
|
$
|
237.2
|
|
|
$
|
40.6
|
|
|
17.1
|
%
|
Adjusted
EBITDA
|
$
|
86.0
|
|
|
$
|
79.4
|
|
|
$
|
6.6
|
|
|
8.3
|
%
|
Bromine net sales of $277.8
million increased $40.6
million (+17%) owing to strong pricing and FX (+17%) while
volume remained flat (0%). Pricing was driven by high demand across
the product portfolio and tight market conditions. Adjusted EBITDA
of $86.0 million increased
$6.6 million due to higher net sales,
partially offset by higher costs for raw materials and freight.
While sales increased during the quarter, the lack of inventory and
a force majeure declaration by the company's chlorine supplier
limited the company's ability to capitalize on strong demand
strength and increased brine production capacity.
Current Trends: The company expects full-year 2021
adjusted EBITDA growth in the low-double digits, up from previous
guidance due to strength in demand for flame retardants, as well as
benefiting from diverse end markets. Volumes will remain
constrained during the remainder of the year due to sold-out
conditions and the lack of inventory. Bromine's ongoing cost
savings initiatives and higher pricing are expected to partially
offset higher freight and raw material costs.
Catalysts
In
millions
|
Q3
2021
|
|
Q3
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
193.6
|
|
|
$
|
197.9
|
|
|
$
|
(4.4)
|
|
|
(2.2)
|
%
|
Adjusted
EBITDA
|
$
|
33.1
|
|
|
$
|
37.8
|
|
|
$
|
(4.7)
|
|
|
(12.5)
|
%
|
Catalysts net sales of $193.6
million decreased $4.4 million
(-2%) compared to the previous year, primarily due to
slightly lower volume (-1%) and pricing and FX (-1%). Adjusted
EBITDA of $33.1 million declined
$4.7 million mostly due to lower
sales and cost pressures, partially offset
by higher-than-expected equity income.
Current Trends: The company revised its
expectations for full-year 2021 adjusted EBITDA to decline between
20% and 25%, an improvement from previous guidance, owing to
higher-than-expected joint venture income. The year-over-year
decline in adjusted EBITDA is primarily due to the impact of the
U.S. Gulf Coast winter storm, product mix, and the previously
disclosed change in a customer's order patterns during the first
quarter. While market conditions continue to improve, volumes are
not expected to return to pre-pandemic levels before late 2022 or
2023.
All Other
In
millions
|
Q3
2021
|
|
Q3
2020
|
|
$
Change
|
|
%
Change
|
Net Sales
|
$
|
—
|
|
|
$
|
46.1
|
|
|
$
|
(46.1)
|
|
|
(100.0)
|
%
|
Adjusted
EBITDA
|
$
|
—
|
|
|
$
|
25.0
|
|
|
$
|
(25.0)
|
|
|
(100.0)
|
%
|
Other operations represent the FCS business which was sold on
June 1, 2021.
Balance Sheet and Liquidity
As of September 30, 2021,
Albemarle had estimated liquidity
of approximately $2.0 billion,
including $595.0 million of cash and
equivalents, the full $1.0 billion
available under the company's revolver, $270.0 million remaining under its delayed draw
term loan and $131.5 million on other
available credit lines. Total debt was $2.0
billion, representing net debt to adjusted EBITDA of
approximately 1.7 times.
Cash Flow and Capital Deployment
Cash from operations for the nine months ended September 30, 2021, of $490.6 million increased $28.9 million versus the prior year driven by
working capital inflows and higher revenues in the company's
Lithium and Bromine segments. Capital expenditures of $652.7 million increased by $31.4 million versus the prior year as the
company nears completion of its Wave 2 Lithium expansion
projects.
Albemarle's primary capital
allocation priorities are to grow profitably, fund its dividend,
and maintain its financial flexibility and its Investment Grade
credit rating.
In October, the board declared a quarterly dividend of
$0.39 per share, an increase over the
quarterly dividend paid in 2020. This is Albemarle's 27th consecutive year of a
dividend increase. The company's share repurchase authorization
remains in place; however, the company has no near-term plans to
execute share buybacks.
Earnings Call
Date:
|
Thursday, November 4,
2021
|
Time:
|
9:00 AM Eastern
time
|
Dial-in
(U.S.):
|
844-347-1034
|
Dial-in
(International):
|
209-905-5910
|
Passcode:
|
6875708
|
The company's earnings presentation and supporting material are
available on Albemarle's website
at https://investors.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB) 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 the timing of active and
proposed projects, product development, production capacity,
committed volumes, market trends, pricing, financial flexibility,
expected growth, anticipated return on opportunities, earnings and
demand for our products, input costs, productivity improvements,
surcharges, tax rates, stock repurchases, dividends, cash flow
generation, costs and cost synergies, capital projects, future
acquisition and divestiture transactions, expected benefits from
proposed transactions, 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;
hazards associated with chemicals manufacturing; 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 most
recent Annual Report on Form 10-K any subsequently filed 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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales
|
$
|
830,566
|
|
|
$
|
746,868
|
|
|
$
|
2,433,753
|
|
|
$
|
2,249,762
|
|
Cost of goods
sold
|
581,293
|
|
|
492,812
|
|
|
1,672,376
|
|
|
1,520,329
|
|
Gross
profit
|
249,273
|
|
|
254,056
|
|
|
761,377
|
|
|
729,433
|
|
Selling, general and
administrative expenses
|
103,477
|
|
|
96,092
|
|
|
318,180
|
|
|
304,918
|
|
Research and
development expenses
|
13,289
|
|
|
13,532
|
|
|
41,901
|
|
|
43,839
|
|
Gain on sale of
business
|
984
|
|
|
—
|
|
|
(428,424)
|
|
|
—
|
|
Operating
profit
|
131,523
|
|
|
144,432
|
|
|
829,720
|
|
|
380,676
|
|
Interest and
financing expenses
|
(5,136)
|
|
|
(19,227)
|
|
|
(56,170)
|
|
|
(53,964)
|
|
Other expense,
net
|
(643,196)
|
|
|
(3,661)
|
|
|
(631,870)
|
|
|
(1,620)
|
|
(Loss) income before
income taxes and equity in net
income of unconsolidated investments
|
(516,809)
|
|
|
121,544
|
|
|
141,680
|
|
|
325,092
|
|
Income tax (benefit)
expense
|
(114,670)
|
|
|
30,653
|
|
|
14,422
|
|
|
64,526
|
|
(Loss) income before
equity in net income of
unconsolidated investments
|
(402,139)
|
|
|
90,891
|
|
|
127,258
|
|
|
260,566
|
|
Equity in net income
of unconsolidated investments (net of
tax)
|
27,706
|
|
|
26,154
|
|
|
62,215
|
|
|
83,872
|
|
Net (loss)
income
|
(374,433)
|
|
|
117,045
|
|
|
189,473
|
|
|
344,438
|
|
Net income
attributable to noncontrolling interests
|
(18,348)
|
|
|
(18,744)
|
|
|
(61,977)
|
|
|
(53,309)
|
|
Net (loss) income
attributable to Albemarle Corporation
|
$
|
(392,781)
|
|
|
$
|
98,301
|
|
|
$
|
127,496
|
|
|
$
|
291,129
|
|
Basic (loss) earnings
per share
|
$
|
(3.36)
|
|
|
$
|
0.92
|
|
|
$
|
1.10
|
|
|
$
|
2.74
|
|
Diluted (loss)
earnings per share
|
$
|
(3.36)
|
|
|
$
|
0.92
|
|
|
$
|
1.10
|
|
|
$
|
2.73
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – basic
|
116,965
|
|
|
106,386
|
|
|
115,455
|
|
|
106,314
|
|
Weighted-average
common shares outstanding – diluted
|
116,965
|
|
|
106,873
|
|
|
116,140
|
|
|
106,640
|
|
Albemarle Corporation
and Subsidiaries
|
Condensed
Consolidated Balance Sheets
|
(In Thousands)
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2021
|
|
2020
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
595,049
|
|
|
$
|
746,724
|
|
Trade accounts
receivable
|
520,746
|
|
|
530,838
|
|
Other accounts
receivable
|
56,298
|
|
|
61,958
|
|
Inventories
|
745,598
|
|
|
750,237
|
|
Other current
assets
|
160,415
|
|
|
116,427
|
|
Total current
assets
|
2,078,106
|
|
|
2,206,184
|
|
Property, plant and
equipment
|
7,783,962
|
|
|
7,427,641
|
|
Less accumulated
depreciation and amortization
|
2,128,485
|
|
|
2,073,016
|
|
Net property, plant
and equipment
|
5,655,477
|
|
|
5,354,625
|
|
Investments
|
902,504
|
|
|
656,244
|
|
Other
assets
|
251,786
|
|
|
219,268
|
|
Goodwill
|
1,623,471
|
|
|
1,665,520
|
|
Other intangibles,
net of amortization
|
320,981
|
|
|
349,105
|
|
Total
assets
|
$
|
10,832,325
|
|
|
$
|
10,450,946
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
545,922
|
|
|
$
|
483,221
|
|
Accrued
expenses
|
956,506
|
|
|
440,763
|
|
Current portion of
long-term debt
|
611
|
|
|
804,677
|
|
Dividends
payable
|
45,450
|
|
|
40,937
|
|
Income taxes
payable
|
42,553
|
|
|
32,251
|
|
Total current
liabilities
|
1,591,042
|
|
|
1,801,849
|
|
Long-term
debt
|
2,021,487
|
|
|
2,767,381
|
|
Postretirement
benefits
|
47,020
|
|
|
48,075
|
|
Pension
benefits
|
299,875
|
|
|
340,818
|
|
Other noncurrent
liabilities
|
617,488
|
|
|
629,377
|
|
Deferred income
taxes
|
360,181
|
|
|
394,852
|
|
Commitments and
contingencies
|
|
|
|
Equity:
|
|
|
|
Albemarle Corporation
shareholders' equity:
|
|
|
|
Common
stock
|
1,170
|
|
|
1,069
|
|
Additional paid-in
capital
|
2,913,383
|
|
|
1,438,038
|
|
Accumulated other
comprehensive loss
|
(366,436)
|
|
|
(326,132)
|
|
Retained
earnings
|
3,145,999
|
|
|
3,155,252
|
|
Total Albemarle
Corporation shareholders' equity
|
5,694,116
|
|
|
4,268,227
|
|
Noncontrolling
interests
|
201,116
|
|
|
200,367
|
|
Total
equity
|
5,895,232
|
|
|
4,468,594
|
|
Total liabilities and
equity
|
$
|
10,832,325
|
|
|
$
|
10,450,946
|
|
Albemarle Corporation
and Subsidiaries
|
Selected Consolidated
Cash Flow Data
|
(In Thousands)
(Unaudited)
|
|
|
Nine Months
Ended
September
30,
|
|
2021
|
|
2020
|
Cash and cash
equivalents at beginning of year
|
$
|
746,724
|
|
|
$
|
613,110
|
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
189,473
|
|
|
344,438
|
|
Adjustments to
reconcile net income to cash flows from operating
activities:
|
|
|
|
Depreciation and
amortization
|
185,765
|
|
|
170,214
|
|
Gain on sale of
business
|
(428,424)
|
|
|
—
|
|
Stock-based
compensation and other
|
14,668
|
|
|
15,864
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(62,215)
|
|
|
(83,872)
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
43,374
|
|
|
61,309
|
|
Pension and
postretirement benefit
|
(12,451)
|
|
|
(4,975)
|
|
Pension and
postretirement contributions
|
(24,145)
|
|
|
(10,323)
|
|
Unrealized gain on
investments in marketable securities
|
(3,912)
|
|
|
(3,377)
|
|
Loss on early
extinguishment of debt
|
28,955
|
|
|
—
|
|
Deferred income
taxes
|
(38,924)
|
|
|
7,920
|
|
Working capital
changes
|
456,405
|
|
|
(167,436)
|
|
Non-cash transfer of
40% value of construction in progress of Kemerton plant
to MRL
|
135,928
|
|
|
131,929
|
|
Other, net
|
6,089
|
|
|
23
|
|
Net cash provided by
operating activities
|
490,586
|
|
|
461,714
|
|
Cash flows from
investing activities:
|
|
|
|
Acquisitions, net of
cash acquired
|
—
|
|
|
(22,572)
|
|
Capital
expenditures
|
(652,739)
|
|
|
(621,371)
|
|
Cash proceeds from
divestitures, net
|
289,791
|
|
|
—
|
|
Sales of marketable
securities, net
|
4,407
|
|
|
1,208
|
|
Investments in equity
and other corporate investments
|
(286)
|
|
|
(786)
|
|
Net cash used in
investing activities
|
(358,827)
|
|
|
(643,521)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from issuance
of common stock
|
1,453,888
|
|
|
—
|
|
Repayments of
long-term debt and credit agreements
|
(1,173,823)
|
|
|
(250,000)
|
|
Proceeds from
borrowings of credit agreements
|
—
|
|
|
452,163
|
|
Other debt repayments,
net
|
(327,292)
|
|
|
202,786
|
|
Fees related to early
extinguishment of debt
|
(24,877)
|
|
|
—
|
|
Dividends paid to
shareholders
|
(132,236)
|
|
|
(120,836)
|
|
Dividends paid to
noncontrolling interests
|
(61,178)
|
|
|
(14,286)
|
|
Proceeds from exercise
of stock options
|
16,220
|
|
|
16,925
|
|
Withholding taxes paid
on stock-based compensation award distributions
|
(7,755)
|
|
|
(4,803)
|
|
Other
|
(1,384)
|
|
|
(2,751)
|
|
Net cash (used in)
provided by financing activities
|
(258,437)
|
|
|
279,198
|
|
Net effect of foreign
exchange on cash and cash equivalents
|
(24,997)
|
|
|
(8,428)
|
|
Increase in cash and
cash equivalents
|
(151,675)
|
|
|
88,963
|
|
Cash and cash
equivalents at end of period
|
$
|
595,049
|
|
|
$
|
702,073
|
|
Albemarle Corporation
and Subsidiaries
|
Consolidated Summary
of Segment Results
|
(In Thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
359,229
|
|
|
$
|
265,646
|
|
|
$
|
958,539
|
|
|
$
|
786,186
|
|
Bromine
Specialties
|
277,783
|
|
|
237,193
|
|
|
837,978
|
|
|
701,564
|
|
Catalysts
|
193,554
|
|
|
197,919
|
|
|
562,141
|
|
|
602,179
|
|
All Other
|
—
|
|
|
46,110
|
|
|
75,095
|
|
|
159,833
|
|
Total net
sales
|
$
|
830,566
|
|
|
$
|
746,868
|
|
|
$
|
2,433,753
|
|
|
$
|
2,249,762
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
125,416
|
|
|
$
|
97,789
|
|
|
$
|
341,293
|
|
|
$
|
270,962
|
|
Bromine
Specialties
|
86,012
|
|
|
79,448
|
|
|
273,298
|
|
|
235,751
|
|
Catalysts
|
33,103
|
|
|
37,834
|
|
|
79,694
|
|
|
108,081
|
|
All Other
|
—
|
|
|
24,985
|
|
|
29,858
|
|
|
66,407
|
|
Corporate
|
(26,962)
|
|
|
(24,001)
|
|
|
(81,892)
|
|
|
(83,588)
|
|
Total adjusted
EBITDA
|
$
|
217,569
|
|
|
$
|
216,055
|
|
|
$
|
642,251
|
|
|
$
|
597,613
|
|
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") or other comparable measures calculated
and reported in accordance with GAAP. These measures are presented
here to provide additional useful measurements to review the
company's 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
Albemarle uses to evaluate its
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 other post-employment
benefit (OPEB) items as listed below. The non-recurring and unusual
items may include acquisition and integration related costs, gains
or losses on sales of businesses, restructuring charges, facility
divestiture charges, certain litigation and arbitration costs
and charges, and other significant non-recurring items. EBITDA is
defined as earnings before interest and financing expenses, income
tax expense, and depreciation and amortization. Adjusted EBITDA is
defined as EBITDA plus or minus the non-recurring, other unusual
and non-operating pension and OPEB items as listed below.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
In thousands, except
percentages and per share amounts
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net (loss) income
attributable to Albemarle Corporation
|
$
|
(392,781)
|
|
|
$
|
98,301
|
|
|
$
|
127,496
|
|
|
$
|
291,129
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items (net of tax)
|
(4,271)
|
|
|
(2,294)
|
|
|
(12,811)
|
|
|
(6,904)
|
|
Non-recurring and
other unusual items (net of tax)
|
520,392
|
|
|
20,278
|
|
|
237,157
|
|
|
29,678
|
|
Adjusted net income
attributable to Albemarle Corporation
|
$
|
123,340
|
|
|
$
|
116,285
|
|
|
$
|
351,842
|
|
|
$
|
313,903
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share
|
$
|
1.05
|
|
|
$
|
1.09
|
|
|
$
|
3.03
|
|
|
$
|
2.94
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
117,685
|
|
|
106,873
|
|
|
116,140
|
|
|
106,640
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Albemarle Corporation
|
$
|
(392,781)
|
|
|
$
|
98,301
|
|
|
$
|
127,496
|
|
|
$
|
291,129
|
|
Add back:
|
|
|
|
|
|
|
|
Interest and financing
expenses
|
5,136
|
|
|
19,227
|
|
|
56,170
|
|
|
53,964
|
|
Income tax
expense
|
(114,670)
|
|
|
30,653
|
|
|
14,422
|
|
|
64,526
|
|
Depreciation and
amortization
|
62,082
|
|
|
58,679
|
|
|
185,765
|
|
|
170,214
|
|
EBITDA
|
(440,233)
|
|
|
206,860
|
|
|
383,853
|
|
|
579,833
|
|
Non-operating pension
and OPEB items
|
(5,471)
|
|
|
(2,901)
|
|
|
(16,407)
|
|
|
(8,704)
|
|
Non-recurring and
other unusual items (excluding items
associated with interest expense)
|
663,273
|
|
|
12,096
|
|
|
274,805
|
|
|
26,484
|
|
Adjusted
EBITDA
|
$
|
217,569
|
|
|
$
|
216,055
|
|
|
$
|
642,251
|
|
|
$
|
597,613
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
830,566
|
|
|
$
|
746,868
|
|
|
$
|
2,433,753
|
|
|
$
|
2,249,762
|
|
EBITDA
margin
|
(53.0)
|
%
|
|
27.7
|
%
|
|
15.8
|
%
|
|
25.8
|
%
|
Adjusted EBITDA
margin
|
26.2
|
%
|
|
28.9
|
%
|
|
26.4
|
%
|
|
26.6
|
%
|
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 reported 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
September
30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
92,449
|
|
|
$
|
73,409
|
|
|
$
|
20,039
|
|
|
$
|
185,897
|
|
|
$
|
—
|
|
|
$
|
(578,678)
|
|
|
$
|
(392,781)
|
|
|
(47.3)
|
%
|
Depreciation and
amortization
|
34,256
|
|
|
12,603
|
|
|
13,064
|
|
|
59,923
|
|
|
—
|
|
|
2,159
|
|
|
62,082
|
|
|
7.5
|
%
|
Non-recurring and
other unusual
items
|
(1,289)
|
|
|
—
|
|
|
—
|
|
|
(1,289)
|
|
|
—
|
|
|
664,562
|
|
|
663,273
|
|
|
79.9
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,136
|
|
|
5,136
|
|
|
0.6
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(114,670)
|
|
|
(114,670)
|
|
|
(13.8)
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,471)
|
|
|
(5,471)
|
|
|
(0.7)
|
%
|
Adjusted
EBITDA
|
$
|
125,416
|
|
|
$
|
86,012
|
|
|
$
|
33,103
|
|
|
$
|
244,531
|
|
|
$
|
—
|
|
|
$
|
(26,962)
|
|
|
$
|
217,569
|
|
|
26.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September
30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
69,102
|
|
|
$
|
66,548
|
|
|
$
|
25,176
|
|
|
$
|
160,826
|
|
|
$
|
22,798
|
|
|
$
|
(85,323)
|
|
|
$
|
98,301
|
|
|
13.2
|
%
|
Depreciation and
amortization
|
28,687
|
|
|
12,900
|
|
|
12,658
|
|
|
54,245
|
|
|
2,187
|
|
|
2,247
|
|
|
58,679
|
|
|
7.9
|
%
|
Non-recurring and
other unusual
items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,096
|
|
|
12,096
|
|
|
1.6
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,227
|
|
|
19,227
|
|
|
2.6
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,653
|
|
|
30,653
|
|
|
4.1
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,901)
|
|
|
(2,901)
|
|
|
(0.4)
|
%
|
Adjusted
EBITDA
|
$
|
97,789
|
|
|
$
|
79,448
|
|
|
$
|
37,834
|
|
|
$
|
215,071
|
|
|
$
|
24,985
|
|
|
$
|
(24,001)
|
|
|
$
|
216,055
|
|
|
28.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September
30, 2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
237,293
|
|
|
$
|
235,670
|
|
|
$
|
41,401
|
|
|
$
|
514,364
|
|
|
$
|
27,988
|
|
|
$
|
(414,856)
|
|
|
$
|
127,496
|
|
|
5.2
|
%
|
Depreciation and
amortization
|
99,559
|
|
|
37,628
|
|
|
38,293
|
|
|
175,480
|
|
|
1,870
|
|
|
8,415
|
|
|
185,765
|
|
|
7.6
|
%
|
Non-recurring and
other unusual
items (excluding items
associated with interest expense)
|
4,441
|
|
|
—
|
|
|
—
|
|
|
4,441
|
|
|
—
|
|
|
270,364
|
|
|
274,805
|
|
|
11.3
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56,170
|
|
|
56,170
|
|
|
2.3
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,422
|
|
|
14,422
|
|
|
0.6
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,407)
|
|
|
(16,407)
|
|
|
(0.7)
|
%
|
Adjusted
EBITDA
|
$
|
341,293
|
|
|
$
|
273,298
|
|
|
$
|
79,694
|
|
|
$
|
694,285
|
|
|
$
|
29,858
|
|
|
$
|
(81,892)
|
|
|
$
|
642,251
|
|
|
26.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September
30, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
Albemarle Corporation
|
$
|
188,380
|
|
|
$
|
198,905
|
|
|
$
|
70,770
|
|
|
$
|
458,055
|
|
|
$
|
60,069
|
|
|
$
|
(226,995)
|
|
|
$
|
291,129
|
|
|
12.9
|
%
|
Depreciation and
amortization
|
82,582
|
|
|
36,846
|
|
|
37,311
|
|
|
156,739
|
|
|
6,338
|
|
|
7,137
|
|
|
170,214
|
|
|
7.6
|
%
|
Non-recurring and
other unusual
items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,484
|
|
|
26,484
|
|
|
1.2
|
%
|
Interest and financing
expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,964
|
|
|
53,964
|
|
|
2.4
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
64,526
|
|
|
64,526
|
|
|
2.9
|
%
|
Non-operating pension
and
OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,704)
|
|
|
(8,704)
|
|
|
(0.4)
|
%
|
Adjusted
EBITDA
|
$
|
270,962
|
|
|
$
|
235,751
|
|
|
$
|
108,081
|
|
|
$
|
614,794
|
|
|
$
|
66,407
|
|
|
$
|
(83,588)
|
|
|
$
|
597,613
|
|
|
26.6
|
%
|
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
Albemarle's operating segments and
are included in the Corporate category. In addition, the company
believes that these components of pension cost are mainly driven by
market performance, and the company manages these separately from
the operational performance of the company's businesses. In
accordance with GAAP, these non-operating pension and OPEB items
are included in Other income (expenses), net. Non-operating pension
and OPEB items were as follows (in thousands):
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Interest
cost
|
$
|
5,422
|
|
|
$
|
7,164
|
|
|
$
|
16,280
|
|
|
$
|
21,452
|
|
Expected return on
assets
|
(10,893)
|
|
|
(10,065)
|
|
|
(32,687)
|
|
|
(30,156)
|
|
Total
|
$
|
(5,471)
|
|
|
$
|
(2,901)
|
|
|
$
|
(16,407)
|
|
|
$
|
(8,704)
|
|
In addition to the non-operating pension and OPEB items
disclosed above, the company has identified certain other items and
excluded them from Albemarle's
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
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Restructuring and
other(1)
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
0.01
|
|
|
$
|
0.08
|
|
Acquisition and
integration related costs(2)
|
0.01
|
|
|
0.04
|
|
|
0.04
|
|
|
0.10
|
|
Albemarle Foundation
contribution(3)
|
—
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
Gain on sale of
business(4)
|
0.01
|
|
|
—
|
|
|
(2.85)
|
|
|
—
|
|
Loss on early
extinguishment of debt(5)
|
—
|
|
|
—
|
|
|
0.21
|
|
|
—
|
|
Legal
accrual(6)
|
4.29
|
|
|
—
|
|
|
4.34
|
|
|
—
|
|
Other(7)
|
0.02
|
|
|
0.02
|
|
|
0.11
|
|
|
0.01
|
|
Discrete tax
items(8)
|
0.09
|
|
|
0.11
|
|
|
0.05
|
|
|
0.09
|
|
Total non-recurring
and other unusual items
|
$
|
4.42
|
|
|
$
|
0.19
|
|
|
$
|
2.04
|
|
|
$
|
0.28
|
|
|
(1)
|
During the three and
nine months ended September 30, 2021, Albemarle recorded facility
closure costs related to offices in Germany, and severance expenses
in Germany and Belgium, in Selling, general and administrative
expenses of $0.8 million and $2.3 million ($0.5 million and $1.6
million after income taxes, or less than $0.01 and $0.01 per
share), respectively. In 2020, Albemarle recorded severance
expenses as part of business reorganization plans, impacting each
of its businesses and Corporate, primarily in the U.S., Germany and
with its Jordanian joint venture partner. During the three months
ended September 30, 2020, the company recorded expenses of $2.3
million ($1.7 million after income taxes, or $0.02 per share) in
Selling, general and administrative expenses. During the nine
months ended September 30, 2020, the company recorded severance
expenses in Cost of goods sold, Selling, general and administrative
expenses and Net income attributable to noncontrolling interest of
$0.7 million, $10.4 million and a $0.3 million gain ($7.9 million
after income taxes, or $0.08 per share), respectively. The balance
of unpaid severance is recorded in Accrued expenses and is expected
to primarily be paid through 2021.
|
|
|
(2)
|
Costs related to the
acquisition, integration and divestitures of various significant
projects, recorded in Selling, general and administrative expenses
for the three and nine months ended September 30, 2021 were $1.6
million and $5.6 million ($1.2 million and $4.5 million after
income taxes, or $0.01 and $0.04 per share), respectively, and for
the three and nine months ended September 30, 2020 were $5.9
million and $14.3 million ($4.6 million and $11.1 million after
income taxes, or $0.04 and $0.10 per share),
respectively.
|
|
|
(3)
|
Included in Selling,
general and administrative expenses for the nine months ended
September 30, 2021 is a charitable contribution of $20.0 million
($15.5 million after income taxes, or $0.13 per share), using a
portion of the proceeds received from the FCS divestiture, to the
Albemarle Foundation, a non-profit organization that sponsors
grants, health and social projects, educational initiatives,
disaster relief, matching gift programs, scholarships and other
charitable initiatives in locations where Albemarle's employees
live and the company operates. This contribution is in addition to
the normal annual contribution made to the Albemarle Foundation by
the company, and is significant in size and nature in that it is
intended to provide more long-term benefits in these
communities.
|
|
|
(4)
|
Included in Gain on
sale of business for the nine months ended September 30, 2021 is
$428.4 million ($330.9 million after discrete income taxes, or
$2.85 per share) related to the sale of the FCS business. During
the three months ended September 30, 2021, the gain on the sale of
the FCS business was adjusted down by $1.0 million ($0.8 million
after discrete income taxes, or $0.01 per share) for working
capital adjustments.
|
|
|
(5)
|
Included in Interest
and financing expenses for the nine months ended September 30, 2021
is a loss on early extinguishment of debt of $29.0 million
($23.8 million after income taxes, or $0.21 per share),
representing the tender premiums, fees, unamortized discounts and
unamortized deferred financing costs from the redemption of $1.5
billion in debt using the proceeds from the issuance of common
stock.
|
|
|
(6)
|
Included in Other
expense, net for the three and nine months ended September 30, 2021
is a $657.4 million ($504.5 million after income taxes, or
$4.34 per share) charge related to a recent arbitration decision on
a dispute regarding Huntsman Corporation's acquisition of
Rockwood's Pigments & Additives business in 2014. The
Huntsman-Rockwood dispute is a legacy dispute that Albemarle
inherited when it purchased all outstanding equity of Rockwood
Holdings, Inc. in 2015, acquiring its lithium and other business
lines unrelated to the dispute.
|
|
|
(7)
|
Other
adjustments for the three months ended September 30, 2021 included
amounts recorded in:
|
|
•
|
Selling, general and
administrative expenses - $2.5 million of expenses primarily
related to non-routine labor and compensation related costs that
are outside normal compensation arrangements.
|
|
•
|
Other income
(expense), net - $0.1 million of a loss resulting from the
adjustment of indemnification obligations related to previously
disposed businesses.
|
|
After income taxes,
these charges totaled $1.9 million, or $0.02 per share.
|
|
|
|
Other adjustments for
the nine months ended September 30, 2021 included amounts recorded
in:
|
|
•
|
Selling, general and
administrative expenses - $8.6 million of expenses primarily
related to non-routine labor and compensation related costs that
are outside normal compensation arrangements, a $4.0 million
loss resulting from the sale of property, plant and equipment and
$1.6 million of charges for an environmental reserve at a site
not part of the company's operations.
|
|
•
|
Other income
(expense), net - $3.7 million of expenses primarily related to
asset retirement obligation charges to update an estimate at a site
formerly owned by Albemarle.
|
|
After income taxes,
these charges totaled $13.3 million, or $0.11 per
share.
|
|
|
|
Other adjustments for
the three months ended September 30, 2020 included amounts recorded
in:
|
|
•
|
Selling, general and
administrative expenses - $3.8 million of a net expense primarily
relating to the increase of environmental reserves at sites that we
are no longer operating or previously sold.
|
|
•
|
Other income
(expense), net - $0.2 million loss resulting from the settlement of
a historical legal matter of an acquired company.
|
|
After income taxes,
these charges totaled $2.7 million, or $0.02 per
share.
|
|
|
|
Other adjustments for
the nine months ended September 30, 2020 included amounts recorded
in:
|
|
•
|
Selling, general and
administrative expenses - $3.8 million of a net expense primarily
relating to the increase of environmental reserves at sites that we
are no longer operating or previously sold.
|
|
•
|
Other income
(expense), net - $2.5 million net gain resulting from the
settlement of legal matters related to a business and site sold,
and $0.8 million net gain primarily relating to the sale of idle
properties in Germany, partially offset by a $0.8 million loss
resulting from the adjustment of indemnification obligations
related to previously disposed businesses.
|
|
|
|
After income taxes,
these net gains totaled $1.0 million, or $0.01 per
share.
|
|
|
(8)
|
Included in Income
tax expense for the three and nine months ended September 30, 2021
are discrete net tax expenses of $11.5 million, or $0.09 per share
and net tax expenses of $4.9 million, or $0.05 per share,
respectively. The net expense for the three months is primarily
related to the impact of discrete tax expense related to global
intangible low-taxed income and foreign uncertain tax positions,
partially offset by a benefit for excess tax benefits realized from
stock-based compensation arrangements. The net expense for the nine
months is primarily related to discrete tax expense related to
global intangible low-taxed income, tax expense due to an
out-of-period adjustment regarding an overstated deferred tax
liability for the three-month period ended December 31, 2017 and
foreign uncertain tax positions. This is partially offset by the
release of a foreign valuation allowance, excess tax benefits
realized from stock-based compensation arrangements, and the
revaluation of deferred taxes due to tax rate changes.
|
|
|
|
Included in Income
tax expense for the three and nine months ended September 30, 2020
are discrete net tax expenses of $11.3 million, or $0.11 per share,
and $9.7 million, or $0.09 per share, respectively. The net expense
for the three months was primarily related to expenses for foreign
uncertain tax positions and foreign return to accrual adjustments.
The net expense for the nine months was primarily related to
expenses for foreign uncertain tax positions and foreign return to
accrual adjustments, partially offset by a benefit for excess tax
benefits realized from stock-based compensation
arrangements.
|
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 reported in accordance with GAAP (in thousands, except
percentages).
|
Income before
income taxes and
equity in net income
of unconsolidated
investments
|
|
Income tax
expense
|
|
Effective income
tax
rate
|
Three months ended
September 30, 2021
|
|
|
|
|
|
As
reported
|
$
|
(516,809)
|
|
|
$
|
(114,670)
|
|
|
22.2
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
657,802
|
|
|
141,681
|
|
|
|
As
adjusted
|
$
|
140,993
|
|
|
$
|
27,011
|
|
|
19.2
|
%
|
|
|
|
|
|
|
Three months ended
September 30, 2020
|
|
|
|
|
|
As
reported
|
$
|
121,544
|
|
|
$
|
30,653
|
|
|
25.2
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
9,195
|
|
|
(8,789)
|
|
|
|
As
adjusted
|
$
|
130,739
|
|
|
$
|
21,864
|
|
|
16.7
|
%
|
|
|
|
|
|
|
Nine months ended
September 30, 2021
|
|
|
|
|
|
As
reported
|
$
|
141,680
|
|
|
$
|
14,422
|
|
|
10.2
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
287,345
|
|
|
62,999
|
|
|
|
As
adjusted
|
$
|
429,025
|
|
|
$
|
77,421
|
|
|
18.0
|
%
|
|
|
|
|
|
|
Nine months ended
September 30, 2020
|
|
|
|
|
|
As
reported
|
$
|
325,092
|
|
|
$
|
64,526
|
|
|
19.8
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB
items
|
18,101
|
|
|
(4,994)
|
|
|
|
As
adjusted
|
$
|
343,193
|
|
|
$
|
59,532
|
|
|
17.4
|
%
|
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SOURCE Albemarle Corporation