Arcadium Lithium Releases Third Quarter 2024 Results
Arcadium Lithium (NYSE: ALTM, ASX: LTM) reported its Q3 2024 results. Revenue was $203.1 million, with a GAAP net income of $16.1 million or 1 cent per diluted share. Adjusted EBITDA stood at $42.9 million. A decline in average realized prices and volumes, along with higher costs, impacted earnings. Average pricing for combined lithium hydroxide and carbonate was $16,200 per metric ton, down from $17,200 in Q2. Total volumes were 6% lower due to weaker demand and slow production ramp-up in Argentina.
The company has withdrawn its operating and financial guidance due to its pending acquisition by Rio Tinto, announced on October 9, 2024. The transaction values Arcadium at $6.7 billion, representing a 90% premium to its share price on October 4, 2024. Key conditions include shareholder approval and regulatory consent. The transaction is expected to close in mid-2025.
Arcadium Lithium (NYSE: ALTM, ASX: LTM) ha riportato i risultati del terzo trimestre del 2024. I ricavi sono stati di 203,1 milioni di dollari, con un utile netto GAAP di 16,1 milioni di dollari, pari a 1 centesimo per azione diluita. L'EBITDA rettificato si è attestato a 42,9 milioni di dollari. Un calo nei prezzi medi realizzati e nei volumi, insieme a costi più elevati, ha influito sugli utili. Il prezzo medio per il litio combinato idrossido e carbonato era di 16.200 dollari per tonnellata metrica, in calo rispetto ai 17.200 dollari del secondo trimestre. I volumi totali sono stati inferiori del 6% a causa di una domanda più debole e di un lento aumento della produzione in Argentina.
L’azienda ha ritirato le sue previsioni operative e finanziarie a causa dell’acquisizione in corso da parte di Rio Tinto, annunciata il 9 ottobre 2024. La transazione valuta Arcadium a 6,7 miliardi di dollari, rappresentando un premio del 90% rispetto al prezzo delle azioni del 4 ottobre 2024. Le condizioni chiave includono l'approvazione degli azionisti e il consenso normativo. Si prevede che la transazione si chiuda a metà del 2025.
Arcadium Lithium (NYSE: ALTM, ASX: LTM) ha reportado sus resultados del tercer trimestre de 2024. Los ingresos fueron de 203,1 millones de dólares, con un ingreso neto GAAP de 16,1 millones de dólares o 1 centavo por acción diluida. El EBITDA ajustado se situó en 42,9 millones de dólares. Una disminución en los precios promedio realizados y en los volúmenes, junto con costos más altos, impactaron las ganancias. El precio promedio del hidróxido y carbonato de litio combinado fue de 16,200 dólares por tonelada métrica, bajando de 17,200 en el segundo trimestre. Los volúmenes totales fueron un 6% más bajos debido a una demanda más débil y un lento aumento de producción en Argentina.
La empresa ha retirado sus guías operativas y financieras debido a su adquisición pendiente por parte de Rio Tinto, anunciada el 9 de octubre de 2024. La transacción valora a Arcadium en 6,7 mil millones de dólares, representando una prima del 90% sobre su precio de acción en el 4 de octubre de 2024. Las condiciones clave incluyen la aprobación de los accionistas y el consentimiento regulatorio. Se espera que la transacción se cierre a mediados de 2025.
아카디움 리튬 (NYSE: ALTM, ASX: LTM)이 2024년 3분기 실적을 발표했습니다. 매출은 2억 3천1백만 달러였으며, GAAP 순이익은 1천6백10만 달러로 희석 주당 1센트입니다. 조정 EBITDA는 4천2백90만 달러로 나타났습니다. 평균 실현 가격과 물량의 감소, 더 높은 비용 등이 수익에 영향을 미쳤습니다. 합친 리튬 수산화물과 탄산염의 평균 가격은 톤당 1만6200달러로, 2분기의 1만7200달러에서 하락했습니다. 총 물량은 수요 감소와 아르헨티나에서의 생산 증가 지연으로 인해 6% 감소했습니다.
회사는 2024년 10월 9일 발표된 리오 틴토의 인수로 인해 운영 및 재무 지침을 철회했습니다. 이 거래는 아카디움을 67억 달러로 평가하며, 2024년 10월 4일의 주가에 대해 90% 프리미엄을 나타냅니다. 주요 조건으로는 주주 승인 및 규제 동의가 포함됩니다. 거래는 2025년 중반에 마감될 것으로 예상됩니다.
Arcadium Lithium (NYSE: ALTM, ASX: LTM) a publié ses résultats du troisième trimestre 2024. Le chiffre d'affaires s'élevait à 203,1 millions de dollars, avec un résultat net GAAP de 16,1 millions de dollars, soit 1 cent par action diluée. L'EBITDA ajusté était de 42,9 millions de dollars. Une baisse des prix moyens réalisés et des volumes, ainsi que des coûts plus élevés, ont eu un impact sur les bénéfices. Le prix moyen combiné pour l'hydroxyde et le carbonate de lithium était de 16 200 dollars par tonne métrique, en baisse par rapport à 17 200 dollars au deuxième trimestre. Les volumes totaux étaient inférieurs de 6 % en raison d'une demande plus faible et d'une augmentation lente de la production en Argentine.
L'entreprise a retiré ses prévisions opérationnelles et financières en raison de son acquisition imminente par Rio Tinto, annoncée le 9 octobre 2024. La transaction valorise Arcadium à 6,7 milliards de dollars, représentant une prime de 90 % par rapport à son prix de l'action au 4 octobre 2024. Les conditions clés comprennent l'approbation des actionnaires et le consentement réglementaire. La transaction devrait être finalisée à la mi-2025.
Arcadium Lithium (NYSE: ALTM, ASX: LTM) hat seine Ergebnisse für das 3. Quartal 2024 bekannt gegeben. Der Umsatz betrug 203,1 Millionen USD, bei einem GAAP-Nettoeinkommen von 16,1 Millionen USD oder 1 Cent pro verwässerter Aktie. Das bereinigte EBITDA belief sich auf 42,9 Millionen USD. Ein Rückgang der durchschnittlich realisierten Preise und Volumina sowie höhere Kosten wirkten sich negativ auf die Ergebnisse aus. Der Durchschnittspreis für kombiniertes Lithiumhydroxid und -carbonat betrug 16.200 USD pro metrischer Tonne, verglichen mit 17.200 USD im 2. Quartal. Die gesamten Volumina lagen aufgrund schwächerer Nachfrage und einer langsamen Produktionssteigerung in Argentinien um 6 % niedriger.
Das Unternehmen hat seine betrieblichen und finanziellen Prognosen aufgrund der bevorstehenden Übernahme durch Rio Tinto, die am 9. Oktober 2024 angekündigt wurde, zurückgezogen. Die Transaktion bewertet Arcadium mit 6,7 Milliarden USD, was einem Aufschlag von 90 % gegenüber dem Aktienkurs am 4. Oktober 2024 entspricht. Die wichtigsten Bedingungen sind die Genehmigung der Aktionäre und die behördliche Zustimmung. Der Abschluss der Transaktion wird Mitte 2025 erwartet.
- Q3 2024 revenue of $203.1 million.
- GAAP net income of $16.1 million or 1 cent per diluted share.
- Pending acquisition by Rio Tinto valued at $6.7 billion, a 90% premium on share price.
- Adjusted EBITDA declined to $42.9 million due to lower average realized prices and volumes, and higher costs.
- Average realized pricing for combined lithium hydroxide and carbonate fell from $17,200 in Q2 to $16,200 in Q3.
- Total volumes were 6% lower due to weaker demand and slow production ramp-up.
PHILADELPHIA and PERTH,
As a result of its pending acquisition by Rio Tinto, announced on October 9, 2024 (the "Transaction"), and as is customary during such transactions, Arcadium Lithium will not hold an earnings conference call in connection with its third quarter financial results. For the same reason, the Company has withdrawn its operating and financial guidance.
For further detail and discussion of Arcadium Lithium's results for the third quarter of 2024, please refer to Arcadium Lithium's Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, which was filed today with the Securities and Exchange Commission (the "SEC"). Arcadium Lithium plans to continue providing quarterly earnings releases and will continue to file reports with the SEC until the Transaction has been completed.
A preliminary proxy statement for the Transaction was filed with the SEC on November 1, 2024.
Third Quarter Highlights
Third quarter revenue was
The Company realized average pricing of
Third quarter total volumes were
Q3 2024 | Revenue (M) | Volume | Unit | Price |
Lithium Hydroxide and Lithium | ~8,7505 | product metric ton | ||
Butyllithium & Other Lithium Specialties | ~480 | LCE3 | ||
Spodumene Concentrate | ~32,400 | dry metric ton | ( | |
Q3 2024 YTD (9 Months) | Revenue (M) | Volume | Unit | Price |
Lithium Hydroxide and Lithium | ~28,8505 | product metric ton | ||
Butyllithium & Other Lithium Specialties | ~1,390 | LCE3 | ||
Spodumene Concentrate | ~85,900 | dry metric ton | ( |
"We continued to deliver strong average realized pricing in a challenging market in the third quarter, supported by our commercial strategy in lithium hydroxide which focuses on long term strategic customers. Our nine-month year-to-date average realized pricing of
Acquisition by Rio Tinto
On October 9, 2024 a definitive agreement (the "Transaction Agreement") was announced under which Rio Tinto will acquire Arcadium Lithium in an all-cash transaction for
Paul Graves said: "We are confident that this is a compelling cash offer that reflects a full and fair long-term value for our business and de-risks our shareholders' exposure to the execution of our development portfolio and market volatility. This agreement with Rio Tinto demonstrates the value in what we have built over many years at Arcadium Lithium and its predecessor companies, and we are excited that this transaction will give us the opportunity to accelerate and expand our strategy, for the benefit of our customers, our employees, and the communities in which we operate."
The Transaction has been unanimously approved by both the Rio Tinto and Arcadium Lithium Boards of Directors. The Transaction, which will be implemented by way of a Jersey scheme of arrangement, is expected to close in mid-2025. Key conditions to closing of the Transaction include approval of Arcadium Lithium shareholders and the Royal Court of Jersey. In addition, the Transaction is subject to receipt of customary regulatory approvals and other closing conditions. However, Arcadium Lithium cannot assure completion of the Transaction by any particular date, if at all or that, if completed, it will be completed on the terms set forth in the Transaction Agreement.
Arcadium Lithium shareholders do not need to take any action at the present time. A majority in number of those Arcadium Lithium shareholders present and voting, and representing at least
Full details of the terms and conditions of the Transaction are set out in the Transaction Agreement, which may be obtained, free of charge, on the SEC's website (http://www.sec.gov).
________________________ |
1 Reconciliation of Adjusted EBITDA, a non-GAAP measure, to net income attributable to Arcadium Lithium plc, the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. |
2 Corresponds to Diluted adjusted after-tax earnings per share in the accompanying financial tables. Reconciliation of Diluted adjusted after-tax earnings per share, a non-GAAP measure, to Diluted earnings per ordinary share (GAAP), the most directly comparable financial measure presented in accordance with GAAP, is set forth in the reconciliation table accompanying this release. |
3 Lithium Carbonate Equivalents. |
4 Includes |
5 Excludes lithium carbonate by-product. |
6 Includes conversion of all outstanding convertible senior notes due 2025. |
Arcadium Lithium Contacts
Investors:
Daniel Rosen +1 215 299 6208
daniel.rosen@arcadiumlithium.com
Phoebe Lee +61 413 557 780
phoebe.lee@arcadiumlithium.com
Media:
Karen Vizental +54 9 114 414 4702
karen.vizental@arcadiumlithium.com
Supplemental Information
In this press release, Arcadium Lithium 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.arcadiumlithium.com and elsewhere in this press release or the financial tables that accompany this press release.
About Arcadium Lithium
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. We collaborate with our customers to drive innovation and power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across lithium extraction processes, including hard-rock mining, conventional brine extraction and direct lithium extraction (DLE), and in lithium chemicals manufacturing for high performance applications. We have operations around the world, with facilities and projects in
Additional Information and Where to Find It
In connection with the Transaction, Arcadium Lithium has filed with the SEC a preliminary proxy statement on Schedule 14A. This press release is not a substitute for the proxy statement or any other document that Arcadium Lithium may file with the SEC and send to its shareholders in connection with the Transaction. Before making any voting decision, Arcadium Lithium's shareholders are urged to read all relevant documents filed or to be filed with the SEC, including the proxy statement, as well as any amendments or supplements to those documents, when they become available, because they will contain important information about Arcadium Lithium and the Transaction.
Arcadium Lithium's shareholders will be able to obtain a free copy of the proxy statement, as well as other filings containing information about Arcadium Lithium, free of charge, at the SEC's website (www.sec.gov). Copies of the proxy statement and other documents filed by Arcadium Lithium with the SEC may be obtained, without charge, by contacting Arcadium Lithium through its website at https://ir.arcadiumlithium.com/.
Participants in the Solicitation
Arcadium Lithium, its directors, executive officers and other persons related to Arcadium Lithium may be deemed to be participants in the solicitation of proxies from Arcadium Lithium's shareholders in connection with the Transaction. Information about the directors and executive officers of Arcadium Lithium and their ownership of ordinary shares of Arcadium Lithium is set forth in the sections entitled "Directors, Executive Officers And Corporate Governance" and "Security Ownership Of Certain Beneficial Owners And Management And Related Stockholder Matters" in Arcadium Lithium's annual report on Form 10-K, as amended, for the fiscal year ended December 31, 2023, which was filed with the SEC on February 29, 2024 and amended on April 1, 2024 and April 29, 2024, and is set forth in the sections entitled "Board of Directors" and "Security Ownership of Arcadium Lithium plc" in its proxy statement for its 2024 annual meeting of shareholders, which was filed with the SEC on June 7, 2024. Additional information regarding the participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, is included in the preliminary proxy statement and will be included in the proxy statement and other relevant materials to be filed with the SEC in connection with the Transaction when they become available. Free copies of these documents may be obtained as described in the preceding paragraph.
Important Information and Legal Disclaimer:
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. Such forward-looking statements are based on our current views and assumptions regarding future events, future business conditions and the outlook for Arcadium Lithium based on currently available information. There are important factors that could cause Arcadium Lithium'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 completion of the Transaction on anticipated terms and timing, including obtaining required shareholder and regulatory approvals, and the satisfaction of other conditions to the completion of the Transaction; potential litigation relating to the Transaction that could be instituted by or against Arcadium Lithium or its affiliates, directors or officers, including the effects of any outcomes related thereto; the risk that disruptions from the Transaction will harm Arcadium Lithium's business, including current plans and operations; the ability of Arcadium Lithium to retain and hire key personnel; potential adverse reactions or changes to business or governmental relationships resulting from the announcement or completion of the Transaction; certain restrictions during the pendency of the Transaction that may impact Arcadium Lithium's ability to pursue certain business opportunities or strategic transactions; significant transaction costs associated with the Transaction; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; the occurrence of any event, change or other circumstance that could give rise to the termination of the Transaction, including in circumstances requiring Arcadium Lithium to pay a termination fee or other expenses; competitive responses to the Transaction; the supply and demand in the market for our products as well as pricing for lithium and high-performance lithium compounds; our ability to realize the anticipated benefits of the integration of the businesses of Livent and Allkem or of any future acquisitions; our ability to acquire or develop additional reserves that are economically viable; the existence, availability and profitability of mineral resources and mineral and ore reserves; the success of our production expansion efforts, research and development efforts and the development of our facilities; our ability to retain existing customers; the competition that we face in our business; the development and adoption of new battery technologies; additional funding or capital that may be required for our operations and expansion plans; political, financial and operational risks that our lithium extraction and production operations, particularly in
ARCADIUM LITHIUM PLC | |||||||
Three Months Ended | Nine Months Ended | ||||||
2024 | 2023 (1) | 2024 | 2023 (1) | ||||
Revenue | $ 203.1 | $ 211.4 | $ 718.8 | $ 700.7 | |||
Costs of sales | 146.9 | 83.6 | 475.8 | 258.4 | |||
Gross margin | 56.2 | 127.8 | 243.0 | 442.3 | |||
Impairment charges | 51.7 | — | 51.7 | — | |||
Selling, general and administrative expenses | 39.7 | 13.2 | 95.1 | 47.1 | |||
Research and development expenses | 1.2 | 1.3 | 3.8 | 3.3 | |||
Restructuring and other charges | 9.7 | 8.7 | 111.4 | 35.0 | |||
Total costs and expenses | 249.2 | 106.8 | 737.8 | 343.8 | |||
(Loss)/income from operations before equity in net loss of unconsolidated | (46.1) | 104.6 | (19.0) | 356.9 | |||
Equity in net loss of unconsolidated affiliate | 5.9 | 6.7 | 5.9 | 22.0 | |||
Interest expense/(income), net | 1.5 | — | (18.8) | — | |||
Loss on debt extinguishment | — | — | 1.1 | — | |||
Other (gains)/losses | (44.8) | 1.2 | (202.0) | (5.3) | |||
(Loss)/income from operations before income taxes | (8.7) | 96.7 | 194.8 | 340.2 | |||
Income tax (benefit)/expense | (33.4) | 9.3 | 55.7 | 47.8 | |||
Net income | $ 24.7 | $ 87.4 | $ 139.1 | $ 292.4 | |||
Net income attributable to noncontrolling interests | 8.6 | — | 21.7 | — | |||
Net income attributable to Arcadium Lithium plc | $ 16.1 | $ 87.4 | $ 117.4 | $ 292.4 | |||
Basic earnings per ordinary share | $ 0.01 | $ 0.20 | $ 0.11 | $ 0.68 | |||
Diluted earnings per ordinary share | $ 0.01 | $ 0.17 | $ 0.10 | $ 0.58 | |||
Weighted average ordinary shares outstanding - basic | 1,075.1 | 432.4 | 1,067.8 | 432.3 | |||
Weighted average ordinary shares outstanding - diluted | 1,143.6 | 503.6 | 1,136.4 | 503.5 | |||
_______________________ | |
1. | For the three and nine months ended September 30, 2023, basic and diluted earnings per ordinary share and weighted average ordinary shares outstanding - basic and diluted amounts represent predecessor Livent and have been adjusted to reflect the 2.406 Exchange Ratio. Represents the results of predecessor Livent's operations for three and nine months ended September 30, 2023 which do not include the operations of Allkem. |
ARCADIUM LITHIUM PLC | |||||||
Three Months Ended | Nine Months Ended | ||||||
(in Millions) | 2024 | 2023 (1) | 2024 | 2023 (1) | |||
Net income attributable to Arcadium Lithium plc | $ 16.1 | $ 87.4 | $ 117.4 | $ 292.4 | |||
Add back: | |||||||
Net income attributable to noncontrolling interests | 8.6 | — | 21.7 | — | |||
Interest expense/(income), net | 1.5 | — | (18.8) | — | |||
Income tax (benefit)/expense | (33.4) | 9.3 | 55.7 | 47.8 | |||
Depreciation and amortization | 26.3 | 7.7 | 67.8 | 21.5 | |||
EBITDA (Non-GAAP) (2) | 19.1 | 104.4 | 243.8 | 361.7 | |||
Add back: | |||||||
(30.1) | 11.6 | (126.3) | 20.5 | ||||
Impairment charges (b) | 51.7 | — | 51.7 | — | |||
Restructuring and other charges (c) | 9.7 | 8.7 | 111.4 | 35.0 | |||
Loss on debt extinguishment (d) | — | — | 1.1 | — | |||
Inventory step-up, Allkem Livent Merger (e) | 0.5 | — | 21.0 | — | |||
Other losses/(gains) (f) | 1.0 | 5.0 | (6.4) | 15.8 | |||
Subtract: | |||||||
Blue Chip Swap gain (g) | (8.7) | (10.0) | (45.2) | (21.4) | |||
(0.3) | — | (0.3) | — | ||||
Adjusted EBITDA (Non-GAAP) (2) | $ 42.9 | $ 119.7 | $ 250.8 | $ 411.6 | |||
__________________ | |
1. | Represents the results of predecessor Livent's operations for three and nine months ended September 30, 2023 which do not include the operations of Allkem. |
2. | We evaluate operating performance using certain Non-GAAP measures such as EBITDA, which we define as net income attributable to Arcadium Lithium plc plus noncontrolling interests, interest expense/(income), net, income tax (benefit)/expense and depreciation and amortization; and Adjusted EBITDA, which we define as EBITDA adjusted for |
a. | Represents impact of currency fluctuations primarily on deferred income tax assets and liabilities. Also includes impact of currency fluctuations on other tax assets and liabilities and on long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement (gains)/losses are included within Other (gains)/losses in our condensed consolidated statements 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. | In the third quarter of 2024, the Company's plan to place its Mt Cattlin spodumene operation in |
c. | 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 months ended September 30, 2024 and 2023 include costs related to the combination of Livent and Allkem in a stock-for-stock transaction (the "Allkem Livent Merger") of |
d. | The nine months ended September 30, 2024 includes a |
e. | Relates to the step-up in inventory recorded for Allkem Livent Merger for the nine months ended September 30, 2024 as a result of purchase accounting, excluded from Adjusted EBITDA as the step-up is considered a one-time, non-recurring cost. |
f. | The three and nine months ended September 30, 2024 primarily represents foreign currency remeasurement gains related to |
g. | Represents non-recurring gain from the sale in |
h. | Represents interest income received from the |
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO ARCADIUM LITHIUM PLC (GAAP) TO | |||||||
(in Millions, Except Per Share Data) | Three Months Ended | Nine Months Ended | |||||
2024 | 2023 (1) | 2024 | 2023 (1) | ||||
Net income attributable to Arcadium Lithium plc | $ 16.1 | $ 87.4 | $ 117.4 | $ 292.4 | |||
Add back: | |||||||
Net income attributable to noncontrolling interests | 8.6 | — | 21.7 | — | |||
Special charges: | |||||||
(30.1) | 11.6 | (126.3) | 20.5 | ||||
Impairment charges (b) | 51.7 | — | 51.7 | — | |||
Restructuring and other charges (c) | 9.7 | 8.7 | 111.4 | 35.0 | |||
Loss on debt extinguishment (d) | — | — | 1.1 | — | |||
Inventory step-up, Allkem Livent Merger (e) | 0.5 | — | 21.0 | — | |||
Other losses/(gains) (f) | 1.0 | 5.0 | (6.4) | 15.8 | |||
Blue Chip Swap gain (g) | (8.7) | (10.0) | (45.2) | (21.4) | |||
(0.3) | — | (0.3) | — | ||||
Non-GAAP tax adjustments (i) | (34.7) | (10.8) | 3.6 | (17.1) | |||
Adjusted after-tax earnings (Non-GAAP) (2) | $ 13.8 | $ 91.9 | $ 149.7 | $ 325.2 | |||
Diluted earnings per ordinary share (GAAP) | $ 0.01 | $ 0.17 | $ 0.10 | $ 0.58 | |||
Special charges per diluted share, before tax: | |||||||
(0.02) | 0.02 | (0.10) | 0.04 | ||||
Impairment charges, per diluted share | 0.05 | — | 0.05 | — | |||
Restructuring and other charges, per diluted share | 0.01 | 0.02 | 0.11 | 0.07 | |||
Inventory step-up, Allkem Livent Merger, per diluted share | — | — | 0.02 | — | |||
Other losses/(gains), per diluted share | — | 0.01 | (0.01) | 0.03 | |||
Blue Chip Swap gain, per diluted share | (0.01) | (0.02) | (0.04) | (0.04) | |||
Non-GAAP tax adjustments, per diluted share | (0.03) | (0.02) | — | (0.03) | |||
Diluted adjusted after-tax earnings per share (Non-GAAP) (2) | $ 0.01 | $ 0.18 | $ 0.13 | $ 0.65 | |||
Weighted average ordinary shares outstanding - diluted (Non- | 1,143.6 | 503.6 | 1,136.4 | 503.5 | |||
___________________ | |
1. | For the three and nine months ended September 30, 2023, diluted earnings per ordinary share (GAAP), weighted average ordinary shares outstanding - diluted (Non-GAAP) and all per diluted share amounts represent predecessor Livent and have been adjusted to reflect the 2.406 Exchange Ratio. Represents the results of predecessor Livent's operations for three and nine months ended September 30, 2023 which do not include the operations of Allkem. |
2. | 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 primarily on deferred income tax assets and liabilities. Also includes impact of currency fluctuations on other tax assets and liabilities and on long-term monetary assets associated with our capital expansion as well as foreign currency devaluations. The remeasurement (gains)/losses are included within Other (gains)/losses in our condensed consolidated statements 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. | In the third quarter of 2024, the Company's plan to place its Mt Cattlin spodumene operation in |
c. | 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 months ended September 30, 2024 and 2023 include costs related to the Allkem Livent Merger of |
d. | The nine months ended September 30, 2024 includes a |
e. | Relates to the step-up in inventory recorded for Allkem Livent Merger for the nine months ended September 30, 2024 as a result of purchase accounting, excluded from Adjusted EBITDA as the step-up is considered a one-time, non-recurring cost. |
f. | The three and nine months ended September 30, 2024 primarily represents foreign currency remeasurement gains related to |
g. | Represents non-recurring gain from the sale in |
h. | Represents interest income received from the |
i. | 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 | Nine Months Ended | ||||||
(in Millions) | 2024 | 2023 | 2024 | 2023 | |||
Non-GAAP tax adjustments: | |||||||
Income tax benefit on restructuring and other charges and other corporate costs | $ (3.5) | $ (0.8) | $ (26.9) | $ (3.6) | |||
Revisions to our tax liabilities due to finalization of prior year tax returns | (5.3) | (0.3) | (4.1) | (0.4) | |||
Foreign currency remeasurement (net of valuation allowance) and other discrete items | (9.5) | (12.0) | 38.4 | (15.1) | |||
Blue Chip Swap gain | 1.3 | 1.0 | 10.5 | 2.2 | |||
Tax effect of impairment charges | (15.5) | — | (15.5) | — | |||
Other discrete items | (2.2) | 1.3 | 1.2 | (0.2) | |||
Total Non-GAAP tax adjustments | $ (34.7) | $ (10.8) | $ 3.6 | $ (17.1) | |||
RECONCILIATION OF CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES (GAAP) TO | |||
Nine Months Ended September 30, | |||
(in Millions) | 2024 | 2023 (1) | |
Cash (used in)/provided by operating activities (GAAP) | $ (158.9) | $ 261.8 | |
Restructuring and other charges | 162.0 | 12.2 | |
(1.1) | — | ||
Adjusted cash provided by operations (Non-GAAP) (2) | $ 2.0 | $ 274.0 | |
___________________ | |
1. | Represents the results of predecessor Livent's operations for nine months ended September 30, 2023 which do not include the operations of Allkem. |
2. | 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 (used in)/provided by operating activities allows management and investors to compare more easily the cash flows from period to period. |
RECONCILIATION OF LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP) TO | |||
(in Millions) | September 30, 2024 | December 31, 2023 (1) | |
Long-term debt (including current maturities) (GAAP) (a) | $ 724.4 | $ 302.0 | |
Less: Cash and cash equivalents (GAAP) | (137.9) | (237.6) | |
Net debt (Non-GAAP) (2) | $ 586.5 | $ 64.4 | |
___________________ | |
1. | Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. |
2. | 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 discounts of |
RECONCILIATION OF CASH AND CASH EQUIVALENTS (GAAP) TO ADJUSTED CASH AND DEPOSITS (NON-GAAP) | |||
The following table provides a reconciliation of Arcadium Lithium's Cash and cash equivalents (GAAP) to Adjusted cash and deposits (Non-GAAP), on an unaudited basis for illustrative purposes. We define Adjusted cash and deposits (Non-GAAP) as Cash and cash equivalents, plus restricted cash in Other non-current assets, less Nemaska Lithium Cash and cash equivalents consolidated by Arcadium on a one-quarter lag, plus Nemaska Lithium Cash and cash equivalents not on a one-quarter lag. Our management believes that this measure provides useful information about the Company's balances and liquidity to investors and securities analysts. Such measure may not be comparable to similar measures disclosed by other companies because of differing methods used by other companies in calculating Adjusted cash and deposits. These measures should not be considered as a substitute for Cash and cash equivalents or other measures of liquidity reported in accordance with | |||
September 30, 2024 | December 31, 2023 (1) | ||
(in Millions) | (unaudited) (1) | ||
Arcadium Lithium Cash and cash equivalents (GAAP) | $ 137.9 | $ 237.6 | |
Allkem Cash and cash equivalents | — | 681.4 | |
Add: | |||
Restricted cash in Other non-current assets: | |||
Project Loan Facility guarantee - Stage 2 of Olaroz Plant (SDJ) | 18.1 | 24.6 | |
Project Financing Facility guarantee - Sal de Vida (SDV) (2) | — | 32.5 | |
Other | 5.2 | 5.0 | |
Less: | |||
Nemaska Lithium Cash and cash equivalents as of June 30, 2024 and October | (42.0) | (133.5) | |
Arcadium Lithium, excluding Nemaska Lithium | 119.2 | 847.6 | |
Nemaska Lithium Cash and cash equivalents not on a one-quarter lag (3) | 12.2 | 44.2 | |
Adjusted cash and deposits (Non-GAAP) (4) | $ 131.4 | $ 891.8 | |
_________________ | |
1. | This unaudited information of the combined company as of December 31, 2023 is for illustrative purposes and was derived from the historical consolidated financial information of Livent, Allkem and Nemaska Lithium. |
2. | On May 30, 2024, SDV paid the outstanding principal balance of |
3. | The presentation reflects NLI's actual balance at that date, not on a one-quarter lag. This differs from Nemaska Lithium cash and cash equivalents included in Arcadium Lithium's condensed consolidated balance sheet as of September 30, 2024 of |
4. | |
ARCADIUM LITHIUM PLC | |||
(in Millions) | September 30, 2024 | December 31, 2023 (1) | |
Cash and cash equivalents | $ 137.9 | $ 237.6 | |
Trade receivables, net of allowance of approximately | 90.2 | 106.7 | |
Inventories | 389.6 | 217.5 | |
Other current assets | 247.9 | 86.4 | |
Total current assets | 865.6 | 648.2 | |
Investments | 40.0 | 34.8 | |
Property, plant and equipment, net of accumulated depreciation of | 7,249.2 | 2,237.1 | |
Right of use assets - operating leases, net | 54.8 | 6.8 | |
Goodwill | 1,293.2 | 120.7 | |
Other intangibles, net | 64.2 | 53.4 | |
Deferred income taxes | 48.2 | 1.4 | |
Other assets | 389.4 | 127.7 | |
Total assets | $ 10,004.6 | $ 3,230.1 | |
Total current liabilities | 735.3 | 268.6 | |
Long-term debt | 436.0 | 299.6 | |
Contract liabilities - long-term | 251.2 | 217.8 | |
Other long-term liabilities | 1,448.2 | 160.3 | |
Total Arcadium Lithium plc shareholders' equity | 6,296.1 | 1,784.2 | |
Noncontrolling interests | 837.8 | 499.6 | |
Total liabilities and equity | $ 10,004.6 | $ 3,230.1 | |
___________________ | |
1. | Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. |
ARCADIUM LITHIUM PLC | |||
Nine Months Ended September 30, | |||
(in Millions) | 2024 | 2023 (1) | |
Cash (used in)/provided by operating activities | $ (158.9) | $ 261.8 | |
Cash used in investing activities | (129.8) | (315.5) | |
Cash provided by/(used in) financing activities | 203.1 | (21.5) | |
Effect of exchange rate changes on cash | (14.1) | (1.2) | |
Decrease in cash and cash equivalents | (99.7) | (76.4) | |
Cash and cash equivalents, beginning of period | 237.6 | 189.0 | |
Cash and cash equivalents, end of period | $ 137.9 | $ 112.6 | |
___________________ | |
1. | Represents the results of predecessor Livent's operations for nine months ended September 30, 2023 which do not include the operations of Allkem. |
ARCADIUM LITHIUM PLC | |||||||||||
Interest Rate Percentage | Maturity | September 30, | December 31, | ||||||||
(in Millions) | SOFR | Base rate | |||||||||
Revolving Credit Facility | 6.70 % | 8.75 % | 2027 | $ 99.0 | $ — | ||||||
4.125 % | 2025 | 245.8 | 245.8 | ||||||||
Transaction costs - 2025 Notes | (1.2) | (2.4) | |||||||||
Nemaska - Prepayment agreement - tranche 1 (2) | 8.9 % | 75.0 | 75.0 | ||||||||
Discount - Prepayment agreement | (16.2) | (19.8) | |||||||||
Nemaska - Prepayment agreement - tranche 2 (2) | 9.4 % | 150.0 | — | ||||||||
Discount - Prepayment agreement | (47.5) | — | |||||||||
Nemaska - Other | 0.5 | 3.4 | |||||||||
Debt assumed in Allkem Livent Merger (3) | |||||||||||
Project Loan Facility - Stage 2 of Olaroz Plant | 2.61 % | 2029 | 135.0 | — | |||||||
Affiliate Loans with TTC | 15.29 % | 2030 | 81.5 | — | |||||||
Affiliate Loan with TLP | 10.34 % | 2026 | 2.5 | — | |||||||
Total debt assumed in Allkem Livent Merger | 219.0 | — | |||||||||
Subtotal long-term debt (including current maturities) | 724.4 | 302.0 | |||||||||
Less current maturities | (288.4) | (2.4) | |||||||||
Total long-term debt | $ 436.0 | $ 299.6 | |||||||||
________________________ | |
1. | Represents the financial position of predecessor Livent as of December 31, 2023, which does not include the financial position of Allkem. |
2. | Represents advance payments in connection with customer supply agreement which do not have a contractual interest rate or bear any actual interest and are repayable in equal quarterly installments beginning in January 2027 and ending in October 2031. Represents |
3. | On September 10, 2024, SDJ paid the outstanding principal balance of |
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SOURCE Arcadium Lithium PLC
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