Li-Cycle Holdings Corp. Reports Financial Results for Fourth Quarter and Full Year 2021; Significant Progress in Advancing Spoke and Hub Network Strategy
Li-Cycle Holdings Corp. (NYSE: LICY) reported significant financial growth for the fiscal year 2021, with revenues increasing 831% to $7.4 million. The Q4 revenue surged 836% to $4.4 million, driven by higher recycling services and product sales. The company is expanding its Spoke and Hub network, with a new facility in Ohio and the first European Spoke in Norway. Li-Cycle holds a robust cash position of $596.9 million and received a $100 million investment from Koch Strategic Platforms. Despite this growth, net losses reached approximately $226.6 million, influenced by a listing fee and fair value losses.
- Revenue increased 831% to $7.4 million for FY 2021.
- Q4 revenue rose 836% to $4.4 million.
- Strong cash position of $596.9 million as of October 31, 2021.
- Expansion of Spoke and Hub network includes new facilities in Ohio and Norway.
- Net loss of approximately $226.6 million for FY 2021, primarily due to a $152.7 million listing fee.
- Operating expenses increased to approximately $39.2 million, up from $9.9 million in the prior year.
- Mobilized to site for the Rochester Hub, with an upsized black mass processing capacity of 35,000 tonnes per annum; Equivalent to approximately 18 gigawatt (GWh) hours of lithium-ion batteries or 225,000 electric vehicles;
-
Continued development of Spoke network with announcement of new location in
Ohio co-located withUltium Cells LLC , the joint venture between General Motors and LG Energy Solution; announcement of Li-Cycle’s first European Spoke inNorway , through a joint venture; -
Robust balance sheet with
in cash, as of fiscal year end 2021;$596.9 million -
Received
investment from Koch Strategic Platforms in the form of a convertible note; expanding strategic partnership to support growth of Spoke and Hub network;$100 million -
Progressing proposed arrangements with LG Chem and LG Energy Solution to recycle battery scrap materials and off-take for nickel sulphate;
investment in$50 million Li-Cycle upon completing commercial agreements by mid-March; -
Revenue increased
836% to and$4.4 million 831% to in Fourth Quarter and Full Year ended$7.4 million October 31, 2021 , respectively; -
Redemption of all outstanding warrants in
January 2022 , which will result in a simplified capital structure.
“We were pleased with our strong fourth quarter performance. The growth in our revenues exemplified the strong operational and commercial execution by the
"We also made significant strides on our Spoke and Hub strategy, competitively positioning
Demand Trends
Rising consumer adoption of EVs is driving global automotive OEMs to increase their manufacturing capacity to ensure EV sales market share. Growing cell, module and pack manufacturing is accelerating the need for scrap recycling in the near to medium term. At least
Spoke & Hub Network:
To date,
Spokes in Construction and
-
North America -
Arizona and Alabama Spokes: each of these Spoke facilities is expected to have an annual processing capacity of 10,000 tonnes of lithium-ion battery input/year and is currently under construction and expected to commence operations in 2022. - Ohio Spoke: with expected annual processing capacity of 15,000 tonnes of lithium-ion battery input/year, this Spoke will be co-located at Ultium Cells LLC’s battery cell manufacturing mega-factory, based on a multi-year agreement to process the mega-factory's battery manufacturing scrap. The facility is expected to be operational in early 2023.
-
-
Europe - Norway Spoke: Li-Cycle’s inaugural European Spoke is being developed through a joint venture with Norwegian Morrow Batteries and ECO STOR. It is expected to have an annual processing capacity of 10,000 tonnes of lithium-ion battery input/year, with operations expected to begin in early 2023.
-
Germany Spoke: The Company is targeting its second Spoke in
Europe to be inGermany . It is expected to have an annual processing capacity of 10,000 tonnes of lithium-ion battery input/year.
Rochester Hub:
The Company expects annual production output from the Rochester Hub to be approximately 42,000 to 48,000 tonnes of nickel sulphate, 7,500 to 8,500 tonnes of lithium carbonate and 6,500 to 7,500 tonnes of cobalt sulphate.
Financial Review for the Fiscal Fourth Quarter and Full Year Ended
Financial Results for Fourth Quarter 2021
Revenues for the quarter increased
Operating expenses for the quarter increased to
Net loss in the quarter was approximately
Adjusted EBITDA (loss) was
Cash flows used in operating activities were approximately
Financial Results for Full Year 2021:
Revenues increased approximately
Operating expenses increased to approximately
Net loss was approximately
Adjusted EBITDA (loss) was approximately
Cash flows used in operating activities were approximately
Cash and cash equivalents were approximately
There were 163,179,653 common shares outstanding as of
Fiscal Year 2022 Objectives and Business Outlook
Li-Cycle’s management team is directly aligned with shareholder interests. Key fiscal year 2022 objectives include:
-
Financial priorities
- Continue building balance sheet strength
- Manage operating expenses on a path to profitability
-
Health, Safety, Environment and Quality (HSEQ)
-
Drive Health , Safety, Environment and Quality (HSEQ) performance, prioritizing safety and sustainability in all of Li-Cycle’s activities
-
-
Rochester Hub
- Maintain on time and on budget execution during fiscal year 2022, in support of commissioning the Rochester Hub in 2023
-
Spokes
-
Overall Spoke target:
- Target black mass production of 6,500 to 7,500 tonnes during fiscal year 2022
-
Spoke operations:
-
Drive ongoing efficient operation of the
Kingston and Rochester Spokes
-
Drive ongoing efficient operation of the
-
Spoke expansion:
-
Bring the
Arizona and Alabama Spokes on-line during 2022 -
Progress
Ohio and Norway Spokes for start-up of operations in 2023 - Advance development of the Germany Spoke
-
Bring the
-
Overall Spoke target:
Webcast and Conference Call Information:
Company management will host a webcast and conference call on
The related presentation materials for the webcast and conference call, including the video will be made available on the investors section of the
https://investors.li-cycle.com/overview/default.aspx
Investors may listen to the conference call live via audio-only webcast or through the following dial-in numbers:
Domestic: (800) 909-5202
International: (785) 830-1914
Participant Code: LICYQ421
Webcast: https://investors.li-cycle.com
A replay of the conference call/webcast will also be made available on the Investor Relations section of the Company’s website at https://investors.li-cycle.com.
About
Non-IFRS Financial Measures
Adjusted EBITDA (loss)
The table below reconciles Adjusted EBITDA (loss) to net profit (loss):
|
Three months ended |
Twelve months ended |
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|
|
||||||||||||
|
2021 |
2020 |
2021 |
2020 |
2019 |
||||||||
|
(Unaudited - dollar amounts in thousands) |
||||||||||||
|
|
|
|||||||||||
Net loss |
(204,969 |
) |
(4,433 |
) |
(226,559 |
) |
(9,276 |
) |
(4,101 |
) |
|||
Depreciation |
1,069 |
|
378 |
|
2,899 |
|
1,095 |
|
184 |
|
|||
Interest expense (income) |
2,040 |
|
189 |
|
2,970 |
|
495 |
|
37 |
|
|||
Foreign exchange (gain) loss |
222 |
|
(336 |
) |
758 |
|
(446 |
) |
— |
|
|||
Fair value loss on financial
|
35,821 |
|
84 |
|
38,254 |
|
84 |
|
— |
|
|||
Listing Fee |
152,719 |
|
— |
|
152,719 |
|
— |
|
— |
|
|||
Forfeited SPAC transaction cost |
— |
|
— |
|
2,000 |
|
— |
|
— |
|
|||
Share-based compensation (2) |
1,588 |
|
— |
|
1,588 |
|
— |
|
— |
|
|||
Adjusted EBITDA Loss |
(11,510 |
) |
(4,119 |
) |
(25,370 |
) |
(8,047 |
) |
(3,880 |
) |
(1) Fair value loss on financial instruments relates to warrants, convertible debt, and restricted share units liability |
(2) Share-based compensation relates to accelerated vesting of existing stock options upon completion of the Business Combination. |
Forward-Looking Statements
Certain statements contained in this communication may be considered “forward-looking statements” within the meaning of the
These forward-looking statements are provided for the purpose of assisting readers in understanding certain key elements of Li-Cycle’s current objectives, goals, targets, strategic priorities, expectations and plans, and in obtaining a better understanding of Li-Cycle’s business and anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes and is not intended to serve as, and must not be relied on, by any investor as a guarantee, an assurance, a prediction or a definitive statement of fact or probability.
Forward-looking statements involve inherent risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of
|
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Consolidated statements of financial position |
|||||
As at |
|||||
(Unaudited - expressed in |
|||||
|
|
|
|||
|
|
|
|||
|
$ |
$ |
|||
|
|
|
|||
Assets |
|
|
|||
Current assets |
|
|
|||
Cash & Cash equivalents |
596,858,298 |
|
663,557 |
|
|
Accounts receivable |
4,072,701 |
|
571,300 |
|
|
Other receivables |
973,145 |
|
318,929 |
|
|
Prepayments and deposits |
8,646,998 |
|
963,951 |
|
|
Inventory |
1,197,807 |
|
179,994 |
|
|
|
611,748,949 |
|
2,697,731 |
|
|
|
|
|
|||
Non-current assets |
|
|
|||
Plant and equipment |
26,389,463 |
|
5,602,580 |
|
|
Right-of-use assets |
27,009,760 |
|
3,859,088 |
|
|
|
53,399,223 |
|
9,461,668 |
|
|
|
|
|
|||
|
665,148,172 |
|
12,159,399 |
|
|
|
|
|
|||
Liabilities |
|
|
|||
Current liabilities |
|
|
|||
Accounts payable and accrued liabilities |
18,701,116 |
|
4,364,372 |
|
|
Restricted share units |
— |
|
171,849 |
|
|
Lease liabilities |
2,868,795 |
|
591,355 |
|
|
Loans payable |
7,752 |
|
1,468,668 |
|
|
|
21,577,663 |
|
6,596,244 |
|
|
|
|
|
|||
Non-current liabilities |
|
|
|||
Lease liabilities |
26,496,074 |
|
3,021,815 |
|
|
Loans payable |
31,996 |
|
779,210 |
|
|
Convertible debt |
100,877,838 |
|
— |
|
|
Warrants |
82,109,334 |
|
— |
|
|
Restoration provisions |
334,233 |
|
321,400 |
|
|
|
209,849,475 |
|
4,122,425 |
|
|
|
|
|
|||
|
231,427,138 |
|
10,718,669 |
|
|
|
|
|
|||
Shareholders' equity |
|
|
|||
Share capital |
672,079,154 |
|
15,441,600 |
|
|
Contributed surplus |
3,026,721 |
|
824,683 |
|
|
Accumulated deficit |
(241,088,229 |
) |
(14,528,941 |
) |
|
Accumulated other comprehensive loss |
(296,612 |
) |
(296,612 |
) |
|
|
433,721,034 |
|
1,440,730 |
|
|
|
665,148,172 |
|
12,159,399 |
|
|
||||||||||
Consolidated statements of loss and comprehensive loss |
||||||||||
Years ended |
||||||||||
(Unaudited - expressed in |
||||||||||
|
Three Months Ended
|
Year Ended |
||||||||
|
2021 |
2020 |
2021 |
2020 |
2019 |
|||||
|
$ |
$ |
$ |
$ |
$ |
|||||
|
|
|
|
|
|
|||||
Revenue |
|
|
|
|
|
|||||
Product sales |
4,247,944 |
|
369,758 |
|
6,930,475 |
|
554,914 |
|
— |
|
Recycling services |
143,185 |
|
99,463 |
|
444,401 |
|
237,340 |
|
48,160 |
|
|
4,391,129 |
|
469,221 |
|
7,374,876 |
|
792,254 |
|
48,160 |
|
|
|
|
|
|
|
|||||
Expenses |
|
|
|
|
|
|||||
Employee salaries and benefits, net |
4,987,347 |
|
1,403,534 |
|
12,709,823 |
|
2,819,195 |
|
607,820 |
|
Professional fees |
3,470,158 |
|
1,402,153 |
|
7,688,520 |
|
2,962,261 |
|
546,647 |
|
Share-based compensation |
2,675,069 |
|
112,194 |
|
3,982,943 |
|
332,634 |
|
97,258 |
|
Raw materials and supplies |
1,406,076 |
|
200,364 |
|
3,410,014 |
|
591,881 |
|
— |
|
Office, administrative and travel |
2,095,105 |
|
216,861 |
|
3,148,871 |
|
476,733 |
|
493,304 |
|
Depreciation |
1,068,742 |
|
377,972 |
|
2,899,345 |
|
1,095,250 |
|
183,862 |
|
Research and development, net |
733,990 |
|
796,025 |
|
2,662,572 |
|
776,668 |
|
2,111,658 |
|
Freight and shipping |
445,196 |
|
79,707 |
|
1,033,149 |
|
137,010 |
|
5,785 |
|
Plant facilities |
354,669 |
|
166,920 |
|
1,030,947 |
|
390,687 |
|
— |
|
Marketing |
508,427 |
|
177,320 |
|
973,695 |
|
365,820 |
|
65,840 |
|
Change in Finished Goods Inventory |
812,936 |
|
32,791 |
|
(307,817 |
) |
(14,022 |
) |
— |
|
|
18,557,715 |
|
4,965,841 |
|
39,232,062 |
|
9,934,117 |
|
4,112,174 |
|
|
|
|
|
|
|
|||||
Loss from operations |
(14,166,586 |
) |
(4,496,620 |
) |
(31,857,186 |
) |
(9,141,863 |
) |
(4,064,014 |
) |
|
|
|
|
|
|
|||||
Other (income) expense |
|
|
|
|
|
|||||
Listing Fee |
152,719,009 |
|
— |
|
152,719,009 |
|
— |
|
— |
|
Fair value loss on financial instruments |
35,821,273 |
|
84,454 |
|
38,254,469 |
|
84,454 |
|
— |
|
Interest expense |
2,120,386 |
|
189,005 |
|
3,052,882 |
|
529,700 |
|
60,329 |
|
Foreign exchange (gain) loss |
222,007 |
|
(336,355 |
) |
758,223 |
|
(445,652 |
) |
— |
|
Interest income |
(80,756 |
) |
(225 |
) |
(82,481 |
) |
(34,403 |
) |
(23,561 |
) |
|
190,801,919 |
|
(63,121 |
) |
194,702,102 |
|
134,099 |
|
36,768 |
|
|
|
|
|
|
|
|||||
Net loss |
(204,968,505 |
) |
(4,433,499 |
) |
(226,559,288 |
) |
(9,275,962 |
) |
(4,100,782 |
) |
|
|
|
|
|
|
|||||
Other comprehensive income (loss) |
|
|
|
|
|
|||||
Foreign currency translation |
— |
|
58,147 |
|
— |
|
(218,726 |
) |
(37,182 |
) |
|
|
|
|
|
|
|||||
Comprehensive loss |
(204,968,505 |
) |
(4,375,352 |
) |
(226,559,288 |
) |
(9,494,688 |
) |
(4,137,964 |
) |
|
|
|
|
|
|
|||||
Loss per common share - basic and diluted |
(1.31 |
) |
(0.05 |
) |
(2.06 |
) |
(0.11 |
) |
(0.06 |
) |
|
||||||||||||||
Consolidated statements of cash flows |
||||||||||||||
Years ended |
||||||||||||||
(Unaudited - expressed in |
||||||||||||||
|
Three Months Ended |
Year ended |
||||||||||||
|
2021 |
2020 |
2021 |
2020 |
2019 |
|||||||||
|
$ |
$ |
$ |
$ |
$ |
|||||||||
|
|
|
|
|
|
|||||||||
Operating activities |
|
|
|
|
|
|||||||||
Net loss for the year |
(204,968,505 |
) |
(4,433,499 |
) |
(226,559,288 |
) |
(9,275,962 |
) |
(4,100,782 |
) |
||||
Items not affecting cash |
|
|
|
|
|
|||||||||
Share-based compensation |
2,675,069 |
|
112,194 |
|
3,982,943 |
|
332,634 |
|
97,258 |
|
||||
Listing fee |
152,719,009 |
|
— |
|
152,719,009 |
|
— |
|
|
|||||
Depreciation |
1,068,747 |
|
377,972 |
|
2,899,350 |
|
1,095,250 |
|
183,862 |
|
||||
Amortization of government grants |
— |
|
(50,869 |
) |
(92,926 |
) |
(2,226,910 |
) |
(640,350 |
) |
||||
Loss on disposal of assets |
— |
|
106,946 |
|
13,399 |
|
106,946 |
|
— |
|
||||
Foreign exchange (gain) loss on translation |
168,284 |
|
60,337 |
|
677,479 |
|
(390,901 |
) |
(33,845 |
) |
||||
Fair value loss on financial instruments |
35,821,273 |
|
84,453 |
|
38,254,469 |
|
84,454 |
|
— |
|
||||
Share-based professional fees |
— |
|
— |
|
— |
|
455,055 |
|
— |
|
||||
Interest and accretion on convertible debt |
1,103,018 |
|
— |
|
1,103,018 |
|
9,931 |
|
60,337 |
|
||||
|
(11,413,105 |
) |
(3,742,466 |
) |
(27,002,547 |
) |
(9,809,503 |
) |
(4,433,520 |
) |
||||
Changes in non-cash working capital items |
|
|
|
|
|
|||||||||
Accounts receivable |
(1,191,837 |
) |
(314,659 |
) |
(3,501,401 |
) |
(538,854 |
) |
(29,630 |
) |
||||
Other receivables |
(598,028 |
) |
(80,667 |
) |
(654,216 |
) |
471,304 |
|
(466,915 |
) |
||||
Prepayments and deposits |
(871,203 |
) |
(690,630 |
) |
(7,990,108 |
) |
(633,824 |
) |
(215,537 |
) |
||||
Inventory |
305,114 |
|
57,872 |
|
(1,017,813 |
) |
(133,438 |
) |
(46,556 |
) |
||||
Accounts payable and accrued liabilities |
2,492,725 |
|
3,000,730 |
|
12,322,936 |
|
3,215,386 |
|
624,090 |
|
||||
|
(11,276,334 |
) |
(1,769,820 |
) |
(27,843,149 |
) |
(7,428,929 |
) |
(4,568,068 |
) |
||||
|
|
|
|
|
|
|||||||||
Investing activity |
|
|
|
|
|
|||||||||
Purchases of plant and equipment |
(6,214,364 |
) |
(1,364,261 |
) |
(18,281,212 |
) |
(5,107,663 |
) |
(998,069 |
) |
||||
Proceeds from disposal of plant and equipment |
— |
|
— |
|
16,866 |
|
— |
|
— |
|
||||
|
(6,214,364 |
) |
(1,364,261 |
) |
(18,264,346 |
) |
(5,107,663 |
) |
(998,069 |
) |
||||
|
|
|
|
|
|
|||||||||
Financing activities |
|
|
|
|
|
|||||||||
Proceeds from private share issuance, net of
|
— |
|
— |
|
21,620,000 |
|
6,481,381 |
|
5,379,860 |
|
||||
Proceeds from public share issuance, net of
|
525,329,273 |
|
— |
|
525,329,273 |
|
— |
|
— |
|
||||
Proceeds from exercise of stock options |
— |
|
— |
|
169,105 |
|
— |
|
— |
|
||||
Proceeds from exercise of warrants |
1,150 |
|
|
1,150 |
|
|
|
|||||||
Proceeds from convertible debt |
98,426,925 |
|
— |
|
98,426,925 |
|
— |
|
— |
|
||||
Proceeds from loans payable |
— |
|
3,775 |
|
10,091,220 |
|
2,153,110 |
|
86,572 |
|
||||
Proceeds from government grants |
— |
|
50,869 |
|
92,926 |
|
1,182,599 |
|
1,697,794 |
|
||||
Repayment of lease liabilities |
(353,071 |
) |
(137,137 |
) |
(884,024 |
) |
(387,508 |
) |
— |
|
||||
Repayment of loans payable |
(11,406,003 |
) |
(2,830 |
) |
(12,544,339 |
) |
(12,881 |
) |
— |
|
||||
|
611,998,274 |
|
(85,323 |
) |
642,302,236 |
|
9,416,701 |
|
7,164,226 |
|
||||
|
|
|
|
|
|
|||||||||
Net change in cash |
594,507,576 |
|
(3,219,404 |
) |
596,194,741 |
|
(3,119,891 |
) |
1,598,089 |
|
||||
Cash, beginning of year |
2,350,722 |
|
3,882,961 |
|
663,557 |
|
3,783,449 |
|
2,185,360 |
|
||||
Cash, end of period |
596,858,298 |
|
663,557 |
|
596,858,298 |
|
663,557 |
|
3,783,449 |
|
||||
|
|
|
|
|
— |
|
||||||||
Non-cash investing activities |
|
|
|
|
|
|||||||||
Accrual for purchase of plant and equipment |
429,409 |
|
— |
|
2,013,808 |
|
— |
|
— |
|
||||
Non cash purchase of plant and equipment |
2,084,235 |
|
— |
|
2,084,235 |
|
— |
|
— |
|
||||
Non-cash financing activities |
|
|
|
|
|
|||||||||
Equity issued for non-cash costs |
— |
|
— |
|
— |
|
947,464 |
|
118,759 |
|
1 Adjusted EBITDA is not a recognized measure under IFRS. See “Non-IFRS Financial Measures” section of this press release, including for a reconciliation of Adjusted EBITDA to net loss.
View source version on businesswire.com: https://www.businesswire.com/news/home/20220127005430/en/
Investors: investors@li-cycle.com
Media: media@li-cycle.com
Source:
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