PHILADELPHIA, Aug. 3, 2023
/PRNewswire/ --
-- Reports Strong Q2 Financial Performance and
Reaffirms 2023 Full Year Guidance Range --
-- Publishes 2022 Sustainability Report
--
-- Highlights Nemaska Lithium Development
Progress, Including Long-Term Supply Agreement with Ford --
-- Proposed Merger with Allkem Progresses
Towards Targeted Year End Close --
Livent Corporation (NYSE: LTHM) today reported results for the
second quarter of 2023.
Second quarter revenue was $235.8
million, 7% lower than the first quarter of 2023 and 8%
higher than the second quarter of 2022. Reported GAAP net
income was $90.2 million, or
43 cents per diluted share, compared
to $114.8 million in the previous
quarter and $60.0 million in the
prior year's quarter. Adjusted EBITDA was $134.5 million, 15% lower than the previous
quarter but 42% higher than the prior year's quarter, and adjusted
earnings per diluted share (1) were
51 cents. Volumes sold were
roughly flat versus the first quarter of 2023 while average
realized prices were slightly lower and overall costs were
higher.
"We continued to see healthy demand from our customers which
helped to support strong financial results in the second
quarter. As anticipated, we experienced the lagged impact of
lower market prices in certain lithium products and end markets, as
well as higher operating costs during the quarter," said
Paul Graves, president and chief
executive officer of Livent. "We expect 2023 second half
financial performance to be broadly similar to the first half of
the year, supported by pricing visibility from our existing
customer contracts and incremental volume available for sale in the
second half of the year."
Sustainability
Earlier this week, Livent published its 2022 Sustainability
Report, reflecting the Company's commitment to responsible
production and expansion through an ongoing focus on environmental
stewardship, social responsibility and transparency. The
report underscores Livent's view that lithium will continue to play
a critical role in supporting a low carbon future. Among the
highlights of the report are an initial global Scope 3 screening of
Livent's Greenhouse Gas (GHG) emissions, first disclosures on
global air pollutants, and a summary of recent water and
biodiversity studies at the Salar del Hombre Muerto in
Argentina. The report follows leading disclosure frameworks,
with key ESG metrics reviewed and assured by a third party.
Livent's 2022 Sustainability Report, with the theme of
Reimagining Possibilities, is available at
https://livent.com/sustainability.
Nemaska Lithium Development
Livent is providing updated projections for Nemaska Lithium, an
integrated 34,000 metric ton lithium hydroxide project located in
Québec, Canada in which Livent is
a 50% shareholder and operating partner. Total capital
requirement for the development of the Whabouchi spodumene mine and
the integrated lithium hydroxide facility in Bécancour is projected
at approximately US$1.6 billion, with
Whabouchi comprising roughly US$400
million of the total amount. The cadence of spending
anticipates the majority of this capital will be spent in 2024 and
2025. Sources of funding for project development are expected
to include a combination of prepayments from customers, various
sources of government funding, third-party debt financing and
contributions from Nemaska Lithium's two current shareholders,
Livent and Investissement Québec.
There are no changes with respect to the anticipated
timeline. Commercial sales of spodumene concentrate are
expected to begin in 2025 and continue until the lithium hydroxide
facility comes into full production. First production of
lithium hydroxide is expected in late 2026. The Nemaska
Lithium project continues to be highly attractive due to its
relative cost position, strategic location in North America and favorable sustainability
profile, including access to low-carbon hydroelectric energy.
After Livent was appointed to engage in sales and marketing
efforts on its behalf, Nemaska Lithium announced its first customer
agreement with Ford Motor Company in May 2023. The agreement
calls for the delivery of up to 13,000 metric tons of lithium
hydroxide per year over an 11-year period, with the supply of
spodumene concentrate to Ford from the Whabouchi mine prior to
commencing delivery of lithium hydroxide produced in
Bécancour. Both companies, and Livent, share a commitment to
the development of a sustainable and socially responsible North
American battery supply chain.
Proposed Merger of Livent and Allkem
On May 10, 2023, Livent and Allkem
(ASX: AKE) announced the signing of a definitive agreement to
combine the two companies to create a leading global lithium
chemicals producer. A registration statement on Form S-4 was
filed with the U.S. Securities and Exchange Commission on
July 20, 2023, which contains a
preliminary proxy statement and prospectus in connection with the
previously announced agreement. All pre-closing regulatory
notifications and applications or draft filings (as applicable)
have been filed in required jurisdictions. The transaction is
expected to close around the end of calendar year 2023.
Guidance and Outlook (2)
Livent has reaffirmed its guidance for 2023 financial
performance and continues to expect significant growth following
record 2022 results. For the full year, Livent projects
revenue to be in the range of $1,025
million to $1,125 million and
Adjusted EBITDA to be in the range of $530
million to $600 million.
This represents growth of 32% and 54%, respectively, at the
midpoints versus the prior year. This guidance is based on
higher total volumes sold versus 2022 and higher average realized
pricing across its portfolio of lithium products, partially offset
by higher costs.
($
million)
|
FY 2023
Guidance
|
Actual
FY
2022
|
YoY
Growth
|
Revenue
|
1,025 –
1,125
|
813
|
Up 26% – 38%
|
Adj. EBITDA
|
530 –
600
|
367
|
Up 45% – 64%
|
Supplemental Information
In this press release, Livent uses the financial measures
Adjusted EBITDA and Diluted adjusted after-tax earnings per
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 1,350 full-time, part-time, temporary, and contract
employees and operates manufacturing sites in the United States, England, 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, we have identified
forward-looking statements by such words or phrases as "will likely
result," "is confident that," "expect," "expects," "should,"
"could," "may," "will continue to," "believe," "believes,"
"anticipates," "predicts," "forecasts," "estimates," "projects,"
"potential," "intends" or similar expressions identifying
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including the negative of
those words and phrases. 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 and the anticipated timing for, and outcome and
effects of, the proposed merger with Allkem. Such forward-looking
statements are based on our current views and assumptions regarding
future events, future business conditions and the outlook for the
Company based on currently available information. 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, including
the factors described under the caption entitled "Risk Factors" in
Livent's 2022 Form 10-K filed with the Securities and Exchange
Commission ("SEC") on February 24,
2023 as well as other SEC filings and public communications.
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.
- Corresponds to Diluted adjusted after-tax earnings per share in
the accompanying financial tables.
- 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 this
metric.
# # #
LIVENT
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in
millions, except per share data)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
235.8
|
|
$
218.7
|
|
$
489.3
|
|
$
362.2
|
Costs of
sales
|
92.4
|
|
116.2
|
|
179.9
|
|
199.8
|
Gross
margin
|
143.4
|
|
102.5
|
|
309.4
|
|
162.4
|
Selling, general and
administrative expenses
|
17.6
|
|
13.8
|
|
33.9
|
|
25.6
|
Research and
development expenses
|
1.0
|
|
0.8
|
|
2.0
|
|
1.7
|
Restructuring and other
charges
|
24.2
|
|
2.9
|
|
26.1
|
|
3.9
|
Separation-related
costs
|
—
|
|
0.3
|
|
—
|
|
0.4
|
Total costs and
expenses
|
135.2
|
|
134.0
|
|
241.9
|
|
231.4
|
Income from operations
before equity in net loss of
unconsolidated affiliates and other gain
|
100.6
|
|
84.7
|
|
247.4
|
|
130.8
|
Equity in net loss of
unconsolidated affiliates
|
7.2
|
|
2.7
|
|
15.3
|
|
4.9
|
Other gain
|
(11.4)
|
|
(8.2)
|
|
(11.4)
|
|
(22.2)
|
Income from operations
before income taxes
|
104.8
|
|
90.2
|
|
243.5
|
|
148.1
|
Income tax
expense
|
14.6
|
|
30.2
|
|
38.5
|
|
34.9
|
Net income
|
$
90.2
|
|
$
60.0
|
|
$
205.0
|
|
$
113.2
|
Net income per weighted
average share - basic
|
$
0.50
|
|
$
0.36
|
|
$
1.14
|
|
$
0.69
|
Net income per weighted
average share - diluted
|
$
0.43
|
|
$
0.31
|
|
$
0.98
|
|
$
0.58
|
Weighted average common
shares outstanding - basic
|
179.7
|
|
166.6
|
|
179.6
|
|
164.2
|
Weighted average common
shares outstanding - diluted
|
209.5
|
|
196.5
|
|
209.3
|
|
194.0
|
LIVENT
CORPORATION
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES
RECONCILIATION OF
NET INCOME (GAAP) TO ADJUSTED EBITDA (NON-GAAP)
(Unaudited)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
90.2
|
|
$
60.0
|
|
$
205.0
|
|
$
113.2
|
Add back:
|
|
|
|
|
|
|
|
Income tax
expense
|
14.6
|
|
30.2
|
|
38.5
|
|
34.9
|
Depreciation and
amortization
|
7.0
|
|
6.4
|
|
13.8
|
|
12.8
|
EBITDA (Non-GAAP)
(1)
|
111.8
|
|
96.6
|
|
257.3
|
|
160.9
|
Add back:
|
|
|
|
|
|
|
|
Argentina remeasurement
losses (a)
|
4.8
|
|
0.8
|
|
8.9
|
|
1.8
|
Restructuring and other
charges (b)
|
24.2
|
|
2.9
|
|
26.1
|
|
3.9
|
Separation-related
costs (c)
|
—
|
|
0.3
|
|
—
|
|
0.4
|
COVID-19 related costs
(d)
|
—
|
|
0.7
|
|
—
|
|
1.5
|
Other loss
(e)
|
5.1
|
|
1.9
|
|
11.0
|
|
3.5
|
Subtract:
|
|
|
|
|
|
|
|
Blue Chip Swap gain
(f)
|
(11.4)
|
|
(8.2)
|
|
(11.4)
|
|
(22.2)
|
Argentina interest
income (g)
|
—
|
|
—
|
|
—
|
|
(1.5)
|
Adjusted EBITDA
(Non-GAAP) (1)
|
$
134.5
|
|
$
95.0
|
|
$
291.9
|
|
$
148.3
|
__________________
1.
|
We evaluate operating
performance using certain Non-GAAP measures such as EBITDA, which
we define as net income plus interest expense, net, income tax
expense and depreciation and amortization; and Adjusted EBITDA,
which we define as EBITDA adjusted for restructuring and other
charges, separation-related costs, COVID-19 related costs and 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 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.
|
|
|
a.
|
Represents impact of
currency fluctuations on tax assets and liabilities and long-term
monetary assets associated with our capital expansion as well as
foreign currency devaluations. The remeasurement 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. The three and six months ended June 30, 2023 includes costs
related to the Transaction of $18.8 million and the Bessemer City
plant fire loss of $5.0 million. The three and six months ended
June 30, 2022 includes costs related to the Transaction of $2.2
million.
|
|
|
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
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 our
ownership interest (which is 50% and was 25% prior to June 6, 2022)
in costs incurred for certain project-related costs to align
Nemaska Lithium Inc.'s ("NLI's") reported results with Livent's
capitalization policies and interest expense incurred by NLI, all
included in Equity in net loss of unconsolidated affiliates in our
condensed consolidated statement of operations. The Company
accounts for its equity method investment in the NLI on a
one-quarter lag basis.
|
|
|
f.
|
Represents the gain
from the sale in Argentina pesos of Argentina Sovereign U.S.
dollar-denominated bonds and is excluded from Adjusted EBITDA
because it is nonrecurring.
|
|
|
g.
|
Represents interest
income received from the Argentina government for the period
beginning when the recoverability of certain of our
expansion-related VAT receivables were approved by the Argentina
government and ending on the date when the reimbursements were paid
by the Argentina government but is excluded from our calculation of
Adjusted EBITDA because of its association with long-term capital
projects which will not be operational until future
periods.
|
RECONCILIATION OF
NET INCOME (GAAP) TO
ADJUSTED AFTER-TAX
EARNINGS (NON-GAAP)
(Unaudited)
|
|
(in Millions, Except
Per Share Data)
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
$
90.2
|
|
$
60.0
|
|
$
205.0
|
|
$
113.2
|
Special
charges:
|
|
|
|
|
|
|
|
Argentina
remeasurement losses (a)
|
4.8
|
|
0.8
|
|
8.9
|
|
1.8
|
Restructuring and
other charges (b)
|
24.2
|
|
2.9
|
|
26.1
|
|
3.9
|
Separation-related
costs (c)
|
—
|
|
0.3
|
|
—
|
|
0.4
|
COVID-19 related costs
(d)
|
—
|
|
0.7
|
|
—
|
|
1.5
|
Other loss
(e)
|
5.1
|
|
1.9
|
|
11.0
|
|
3.5
|
Blue Chip Swap gain
(f)
|
(11.4)
|
|
(8.2)
|
|
(11.4)
|
|
(22.2)
|
Argentina interest
income (g)
|
—
|
|
—
|
|
—
|
|
(1.5)
|
Non-GAAP tax
adjustments (h)
|
(5.6)
|
|
14.9
|
|
(6.3)
|
|
12.7
|
Adjusted after-tax
earnings (Non-GAAP) (1)
|
$
107.3
|
|
$
73.3
|
|
$
233.3
|
|
$
113.3
|
|
|
|
|
|
|
|
|
Diluted earnings per
common share (GAAP)
|
$
0.43
|
|
$
0.31
|
|
$
0.98
|
|
$
0.58
|
Special charges per
diluted share, before tax:
|
|
|
|
|
|
|
|
Argentina
remeasurement losses, per diluted share
|
0.02
|
|
—
|
|
0.04
|
|
0.01
|
Restructuring and
other charges, per diluted share
|
0.12
|
|
0.01
|
|
0.12
|
|
0.02
|
COVID-19 related
costs, per diluted share
|
—
|
|
—
|
|
—
|
|
0.01
|
Other loss, per
diluted share
|
0.02
|
|
0.01
|
|
0.05
|
|
0.01
|
Blue Chip Swap gain,
per diluted share
|
(0.05)
|
|
(0.04)
|
|
(0.05)
|
|
(0.12)
|
Non-GAAP tax
adjustments, per diluted share
|
(0.03)
|
|
0.08
|
|
(0.03)
|
|
0.07
|
Diluted adjusted
after-tax earnings per share (Non-GAAP) (1)
|
$
0.51
|
|
$
0.37
|
|
$
1.11
|
|
$
0.58
|
Weighted average common
shares outstanding - diluted (Non-GAAP)
used in diluted adjusted after-tax earnings per share
computations
|
209.5
|
|
196.5
|
|
209.3
|
|
194.0
|
___________________
1.
|
The Company believes
that the Non-GAAP financial measures "Adjusted after-tax earnings"
and "Diluted adjusted after-tax earnings per share" provide useful
information about the Company's operating results to management,
investors and securities analysts. Adjusted after-tax earnings
excludes the effects of 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 per share (Non-GAAP) is calculated using
weighted average common shares outstanding - diluted.
|
|
|
a.
|
Represents impact of
currency fluctuations on tax assets and liabilities and long-term
monetary assets associated with our capital expansion as well as
foreign currency devaluations. The remeasurement 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. The three and six months ended June 30, 2023 includes costs
related to the Transaction of $18.8 million and Bessemer City plant
fire loss of $5.0 million. The three and six months ended June 30,
2022 includes costs related to the Transaction of $2.2
million.
|
|
|
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
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 our
ownership interest (which is 50% and was 25% prior to June 6, 2022)
in costs incurred for certain project-related costs to align NLI's
reported results with Livent's capitalization policies and interest
expense incurred by NLI, all included in Equity in net loss of
unconsolidated affiliate in our condensed consolidated statement of
operations. The Company accounts for its equity method investment
in NLI on a one-quarter lag basis.
|
|
|
f.
|
Represents the gain
from the sale in Argentina pesos of Argentina Sovereign U.S.
dollar-denominated bonds and is excluded from Adjusted EBITDA
because it is nonrecurring.
|
|
|
g.
|
Represents interest
income received from the Argentina government for the period
beginning when the recoverability of certain of our
expansion-related VAT receivables were approved by the Argentina
government and ending on the date when the reimbursements were paid
by the Argentina government but is excluded from our calculation of
Adjusted EBITDA because of its association with long-term capital
projects which will not be operational until future
periods.
|
|
|
h.
|
The company excludes
the GAAP tax provision, including discrete items, from the Non-GAAP
measure "Diluted adjusted after-tax earnings per share", 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 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
June 30,
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Non-GAAP tax
adjustments:
|
|
|
|
|
|
|
|
Income tax benefit on
restructuring, separation-related and other corporate
costs
|
$
(2.3)
|
|
$
(1.0)
|
|
$
(2.8)
|
|
$
(0.9)
|
Revisions to our tax
liabilities due to finalization of prior year tax
returns
|
(0.1)
|
|
—
|
|
(0.1)
|
|
—
|
Foreign currency
remeasurement and other discrete items (1)
|
(4.3)
|
|
15.8
|
|
(3.1)
|
|
11.9
|
Blue Chip Swap
gain
|
1.2
|
|
0.9
|
|
1.2
|
|
2.3
|
Other discrete
items
|
(0.1)
|
|
(0.8)
|
|
(1.5)
|
|
(0.6)
|
Total Non-GAAP tax
adjustments
|
$
(5.6)
|
|
$
14.9
|
|
$
(6.3)
|
|
$
12.7
|
RECONCILIATION OF
CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) TO
ADJUSTED CASH
PROVIDED BY OPERATIONS (NON-GAAP)
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2023
|
|
2022
|
Cash provided by
operating activities (GAAP)
|
$
181.6
|
|
$
61.2
|
Restructuring and
other charges/(income)
|
10.4
|
|
(0.4)
|
Separation-related
costs
|
—
|
|
0.6
|
COVID-19 related costs
(a)
|
—
|
|
1.5
|
Argentina interest
income (b)
|
—
|
|
(1.5)
|
Adjusted cash provided
by operations (Non-GAAP) (1)
|
$
192.0
|
|
$
61.4
|
___________________
1.
|
The Company believes
that the Non-GAAP financial measure "Adjusted cash provided by
operations" provides useful information about the Company's cash
flows to investors and securities analysts. Adjusted cash provided
by operations excludes the effects of transaction-related cash
flows. The Company also believes that excluding the effects of
these items from cash provided by operating activities allows
management and investors to compare more easily the cash flows from
period to period.
|
|
|
a.
|
Represents incremental
costs associated with COVID-19 recorded in "Cost of sales" in the
condensed consolidated statement of operations, including but not
limited to, incremental quarantine-related absenteeism, incremental
facility cleaning costs, 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 interest
income received from the Argentina government for the period
beginning when the recoverability of certain of our
expansion-related VAT receivables were approved by the Argentina
government and ending on the date when the reimbursements were paid
by the Argentina government but is excluded from our calculation of
Adjusted cash provided by operations because of its association
with long-term capital projects which will not be operational until
future periods.
|
RECONCILIATION OF
LONG-TERM DEBT (GAAP) AND CURRENT PORTION OF LONG-TERM DEBT
(GAAP)
AND CASH AND CASH EQUIVALENTS (GAAP) TO
NET DEBT
(NON-GAAP)
(Unaudited)
|
|
(in
Millions)
|
June 30,
2023
|
|
December 31,
2022
|
Long-term debt (GAAP)
(a)
|
$
242.7
|
|
$
241.9
|
Less: Cash and cash
equivalents (GAAP)
|
(167.8)
|
|
(189.0)
|
Net debt (Non-GAAP)
(1)
|
$
74.9
|
|
$
52.9
|
___________________
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.
|
Presented net of
unamortized transaction costs of $3.1 million and
$3.9 million as of June 30, 2023 and December 31,
2022, respectively. As of June 30, 2023 and December 31,
2022, the Company had no debt maturing within one year.
|
LIVENT
CORPORATION
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
(in
Millions)
|
June 30,
2023
|
|
December 31,
2022
|
Cash and cash
equivalents
|
$
167.8
|
|
$
189.0
|
Trade receivables, net
of allowance of approximately $0.3 in 2023 and 2022
|
122.3
|
|
141.6
|
Inventories
|
197.8
|
|
152.3
|
Other current
assets
|
44.8
|
|
61.1
|
Total current
assets
|
532.7
|
|
544.0
|
Investments
|
455.7
|
|
440.3
|
Property, plant and
equipment, net of accumulated depreciation of $265.7 in 2023
and $253.1 in 2022
|
1,137.4
|
|
968.3
|
Right of use assets -
operating leases, net
|
6.8
|
|
4.8
|
Deferred income
taxes
|
0.1
|
|
0.4
|
Other assets
|
151.1
|
|
116.4
|
Total assets
|
$
2,283.8
|
|
$
2,074.2
|
|
|
|
|
Accounts payable, trade
and other
|
$
80.5
|
|
$
81.7
|
Contract liabilities -
short term
|
2.3
|
|
15.5
|
Other current
liabilities
|
58.7
|
|
51.5
|
Total current
liabilities
|
141.5
|
|
148.7
|
Long-term
debt
|
242.7
|
|
241.9
|
Contract liability -
long-term
|
198.0
|
|
198.0
|
Other long-term
liabilities
|
48.6
|
|
42.6
|
Equity
|
1,653.0
|
|
1,443.0
|
Total liabilities and
equity
|
$
2,283.8
|
|
$
2,074.2
|
LIVENT
CORPORATION
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
|
|
|
Six Months Ended
June 30,
|
(in
Millions)
|
2023
|
|
2022
|
Cash provided by
operating activities
|
$
181.6
|
|
$
61.2
|
Cash used in investing
activities
|
(180.2)
|
|
(124.1)
|
Cash (used in)/provided
by financing activities
|
(21.6)
|
|
0.2
|
Effect of exchange rate
changes on cash
|
(1.0)
|
|
(1.3)
|
Decrease in cash and
cash equivalents
|
(21.2)
|
|
(64.0)
|
Cash and cash
equivalents, beginning of period
|
189.0
|
|
113.0
|
Cash and cash
equivalents, end of period
|
$
167.8
|
|
$
49.0
|
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