News
Albemarle continues double digit growth in third quarter
November 8, 2017

Third quarter 2017 highlights:
- Third quarter net sales were
$754.9 million , an increase of 15% over the prior year - Third quarter earnings were
$118.7 million , or$1.06 per diluted share - Third quarter adjusted EBITDA was
$209.4 million , an increase of 11% over the prior year; adjusted diluted earnings per share from continuing operations of$1.08 , an increase of 19% over the prior year - Delivered double digit growth despite the impact of hurricane Harvey, which reduced adjusted EBITDA by
$11 million and adjusted diluted earnings per share by$0.07 - Announced technology innovation to increase efficiency of lithium extraction in
Chile under existing pumping rates by 50% and requested related quota increase from CORFO
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
In thousands, except per share amounts |
2017 |
2016 |
2017 |
2016 |
|||||||||||
Net sales |
$ |
754,866 |
$ |
654,010 |
$ |
2,214,187 |
$ |
1,980,548 |
|||||||
Net income from continuing operations |
$ |
130,193 |
$ |
114,512 |
$ |
306,539 |
$ |
428,334 |
|||||||
Net income attributable to Albemarle Corporation |
$ |
118,670 |
$ |
128,220 |
$ |
273,216 |
$ |
41,585 |
|||||||
Adjusted EBITDA |
$ |
209,383 |
$ |
188,329 |
$ |
639,700 |
$ |
570,833 |
|||||||
Diluted earnings per share attributable to Albemarle |
$ |
1.06 |
$ |
1.13 |
$ |
2.43 |
$ |
0.37 |
|||||||
Non-operating pension and OPEB items(a) |
(0.01) |
— |
(0.02) |
— |
|||||||||||
Non-recurring and other unusual items(b) |
0.02 |
(0.02) |
0.84 |
(0.75) |
|||||||||||
Discontinued operations(c) |
— |
(0.20) |
— |
3.16 |
|||||||||||
Adjusted diluted earnings per share from continuing |
$ |
1.08 |
$ |
0.91 |
$ |
3.26 |
$ |
2.78 |
|||||||
See accompanying notes (a) through (d) to the condensed consolidated financial information and non-GAAP reconciliations. |
"In the third quarter, we delivered the seventh consecutive quarter of year over year revenue growth excluding divested businesses," said
Outlook
Based on our strong performance through the third quarter of 2017, we are increasing our guidance as outlined below:
Previous Outlook |
Current Outlook |
||
Net sales |
$2.90 - $3.05 billion |
$3.00 - $3.05 billion |
|
Adjusted EBITDA |
$835 - $875 million |
$860 - $875 million |
|
Adjusted EPS (per diluted share) |
$4.20 - $4.40 |
$4.40 - $4.50 |
Results
Third quarter 2017 earnings were
For the nine-month period ended
Quarterly Segment Results
Lithium and Advanced Materials reported net sales of
Bromine Specialties reported net sales of
Refining Solutions reported net sales of
All Other net sales were
Corporate Results
Corporate adjusted EBITDA was a loss of
Income Taxes
Our effective income tax rates for the third quarter of 2017 and 2016 of 14.3% and 11.1%, respectively, are influenced by non-recurring, other unusual and non-operating pension and OPEB items (see notes to the condensed consolidated financial information). Our adjusted effective income tax rates, which exclude non-recurring, other unusual and non-operating pension and OPEB items, were 17.0% and 18.2% for the third quarter of 2017 and 2016, respectively, and continue to be influenced by the level and geographic mix of income. The increase in the effective tax rate in the third quarter of 2017 compared to 2016 was impacted by a variety of factors, primarily stemming from the discrete tax benefit in 2016 related to accrual to return adjustments of
Cash Flow
Our cash from operations was approximately
Earnings Call
The Company's performance for the third quarter ended September 30, 2017 will be discussed on a conference call at
About Albemarle
Discovering and implementing new and better performance-based sustainable solutions is what motivates all of us. We think beyond business-as-usual to drive innovations that create lasting value. Albemarle employs approximately 4,500 people and serves customers in approximately 100 countries. We regularly post information to www.albemarle.com, including notification of events, news, financial performance, investor presentations and webcasts, non-GAAP reconciliations,
Forward-Looking Statements
Some of the information presented in this press release, the conference call and discussions that follow, including, without limitation, product development, changes in productivity, market trends, price, expected growth and earnings, input costs, surcharges, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, portfolio diversification, 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 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; limitations or prohibitions on the manufacture and sale of our products; availability of raw materials; changes in the cost of raw materials and energy; 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 proceedings, claims or litigation; the occurrence of cybersecurity breaches, terrorist attacks, industrial accidents, natural disasters or climate change; the inability to maintain current levels of product or premises liability insurance or the denial of such coverage; political unrest affecting the global economy; 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; volatility and substantial uncertainties in the debt and equity markets; technology or intellectual property infringement; decisions we may make in the future; the ability to successfully execute, operate and integrate acquisitions and divestitures; and the other factors detailed from time to time in the reports we file with the
Albemarle Corporation and Subsidiaries |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net sales |
$ |
754,866 |
$ |
654,010 |
$ |
2,214,187 |
$ |
1,980,548 |
|||||||
Cost of goods sold(a)(b) |
479,077 |
415,038 |
1,411,216 |
1,250,938 |
|||||||||||
Gross profit |
275,789 |
238,972 |
802,971 |
729,610 |
|||||||||||
Selling, general and administrative expenses(a)(b) |
105,582 |
86,302 |
329,269 |
254,988 |
|||||||||||
Research and development expenses(b) |
21,763 |
21,012 |
63,423 |
61,384 |
|||||||||||
Gain on sales of businesses, net(b) |
— |
— |
— |
(122,298) |
|||||||||||
Acquisition and integration related costs(b) |
— |
6,749 |
— |
44,337 |
|||||||||||
Operating profit |
148,444 |
124,909 |
410,279 |
491,199 |
|||||||||||
Interest and financing expenses(b) |
(15,792) |
(15,946) |
(98,895) |
(46,860) |
|||||||||||
Other (expenses) income, net(b) |
(3,008) |
2,990 |
(6,512) |
740 |
|||||||||||
Income from continuing operations before income taxes |
129,644 |
111,953 |
304,872 |
445,079 |
|||||||||||
Income tax expense(b) |
18,495 |
12,394 |
53,596 |
61,535 |
|||||||||||
Income from continuing operations before equity in net |
111,149 |
99,559 |
251,276 |
383,544 |
|||||||||||
Equity in net income of unconsolidated investments (net of |
19,044 |
14,953 |
55,263 |
44,790 |
|||||||||||
Net income from continuing operations |
130,193 |
114,512 |
306,539 |
428,334 |
|||||||||||
Income (loss) from discontinued operations (net of tax)(c) |
— |
23,185 |
— |
(357,843) |
|||||||||||
Net income |
130,193 |
137,697 |
306,539 |
70,491 |
|||||||||||
Net income attributable to noncontrolling interests |
(11,523) |
(9,477) |
(33,323) |
(28,906) |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
118,670 |
$ |
128,220 |
$ |
273,216 |
$ |
41,585 |
|||||||
Basic earnings (loss) per share: |
|||||||||||||||
Continuing operations |
$ |
1.07 |
$ |
0.93 |
$ |
2.46 |
$ |
3.56 |
|||||||
Discontinued operations |
— |
0.21 |
— |
(3.19) |
|||||||||||
$ |
1.07 |
$ |
1.14 |
$ |
2.46 |
$ |
0.37 |
||||||||
Diluted earnings (loss) per share: |
|||||||||||||||
Continuing operations |
$ |
1.06 |
$ |
0.93 |
$ |
2.43 |
$ |
3.53 |
|||||||
Discontinued operations |
— |
0.20 |
— |
(3.16) |
|||||||||||
$ |
1.06 |
$ |
1.13 |
$ |
2.43 |
$ |
0.37 |
||||||||
Weighted-average common shares outstanding – basic |
110,476 |
112,429 |
111,049 |
112,343 |
|||||||||||
Weighted-average common shares outstanding – diluted |
111,975 |
113,448 |
112,456 |
113,131 |
|||||||||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries |
|||||||
September 30, |
December 31, |
||||||
2017 |
2016 |
||||||
ASSETS |
|||||||
Cash and cash equivalents |
$ |
1,045,339 |
$ |
2,269,756 |
|||
Other current assets |
1,281,985 |
1,036,862 |
|||||
Total current assets |
2,327,324 |
3,306,618 |
|||||
Property, plant and equipment |
4,167,065 |
3,910,522 |
|||||
Less accumulated depreciation and amortization |
1,682,780 |
1,550,382 |
|||||
Net property, plant and equipment |
2,484,285 |
2,360,140 |
|||||
Other assets and intangibles |
2,711,691 |
2,494,449 |
|||||
Total assets |
$ |
7,523,300 |
$ |
8,161,207 |
|||
LIABILITIES AND EQUITY |
|||||||
Current portion of long-term debt |
$ |
382,358 |
$ |
247,544 |
|||
Other current liabilities |
720,659 |
892,559 |
|||||
Total current liabilities |
1,103,017 |
1,140,103 |
|||||
Long-term debt |
1,407,171 |
2,121,718 |
|||||
Other noncurrent liabilities |
559,506 |
544,043 |
|||||
Deferred income taxes |
414,034 |
412,739 |
|||||
Albemarle Corporation shareholders' equity |
3,898,819 |
3,795,062 |
|||||
Noncontrolling interests |
140,753 |
147,542 |
|||||
Total liabilities and equity |
$ |
7,523,300 |
$ |
8,161,207 |
|||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) |
|||||||
Nine Months Ended |
|||||||
September 30, |
|||||||
2017 |
2016 |
||||||
Cash and cash equivalents at beginning of year |
$ |
2,269,756 |
$ |
213,734 |
|||
Cash and cash equivalents at end of period |
$ |
1,045,339 |
$ |
233,599 |
|||
Sources of cash and cash equivalents: |
|||||||
Net income |
$ |
306,539 |
$ |
70,491 |
|||
Cash proceeds from divestitures, net |
6,857 |
310,599 |
|||||
Proceeds from borrowings of long-term debt |
27,000 |
— |
|||||
Other borrowings, net |
79,203 |
— |
|||||
Dividends received from unconsolidated investments and nonmarketable securities |
11,900 |
34,982 |
|||||
Proceeds from exercise of stock options |
7,011 |
6,779 |
|||||
Uses of cash and cash equivalents: |
|||||||
Working capital changes |
(398,913) |
(79,684) |
|||||
Capital expenditures |
(187,519) |
(141,301) |
|||||
Acquisitions, net of cash acquired |
(45,406) |
— |
|||||
Cash payments related to acquisitions and other |
— |
(81,988) |
|||||
Repayments of long-term debt |
(753,209) |
(382,730) |
|||||
Repurchases of common stock |
(250,000) |
— |
|||||
Repayments of other borrowings, net |
— |
(9,026) |
|||||
Pension and postretirement contributions |
(9,607) |
(13,649) |
|||||
Dividends paid to shareholders |
(105,205) |
(101,061) |
|||||
Fees related to early extinguishment of debt |
(46,959) |
— |
|||||
Dividends paid to noncontrolling interests |
(27,791) |
(23,873) |
|||||
Non-cash and other items: |
|||||||
Depreciation and amortization |
144,087 |
176,499 |
|||||
Gain on sales of businesses, net |
— |
(122,298) |
|||||
Gain on acquisition |
(6,025) |
— |
|||||
Pension and postretirement expense |
67 |
7,911 |
|||||
Loss on early extinguishment of debt |
52,801 |
— |
|||||
Deferred income taxes |
4,677 |
404,728 |
|||||
Equity in net income of unconsolidated investments (net of tax) |
(55,263) |
(46,224) |
|||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net sales: |
|||||||||||||||
Lithium and Advanced Materials |
$ |
343,557 |
$ |
240,424 |
$ |
945,791 |
$ |
689,950 |
|||||||
Bromine Specialties |
212,923 |
194,496 |
636,059 |
597,912 |
|||||||||||
Refining Solutions |
170,275 |
190,453 |
539,904 |
539,044 |
|||||||||||
All Other |
28,021 |
28,272 |
91,144 |
150,987 |
|||||||||||
Corporate |
90 |
365 |
1,289 |
2,655 |
|||||||||||
Total net sales |
$ |
754,866 |
$ |
654,010 |
$ |
2,214,187 |
$ |
1,980,548 |
|||||||
Adjusted EBITDA: |
|||||||||||||||
Lithium and Advanced Materials |
$ |
130,218 |
$ |
91,719 |
$ |
382,789 |
$ |
260,861 |
|||||||
Bromine Specialties |
63,936 |
51,807 |
194,499 |
179,977 |
|||||||||||
Refining Solutions |
43,120 |
64,960 |
142,777 |
181,620 |
|||||||||||
All Other |
306 |
5,470 |
7,906 |
14,810 |
|||||||||||
Corporate(a) |
(28,197) |
(25,627) |
(88,271) |
(66,435) |
|||||||||||
Total adjusted EBITDA |
$ |
209,383 |
$ |
188,329 |
$ |
639,700 |
$ |
570,833 |
Lithium and Advanced Materials - details by product category: |
|||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net sales: |
|||||||||||||||
Lithium |
$ |
269,238 |
$ |
166,406 |
$ |
729,288 |
$ |
460,679 |
|||||||
PCS |
74,319 |
74,018 |
216,503 |
229,271 |
|||||||||||
Total Lithium and Advanced Materials |
$ |
343,557 |
$ |
240,424 |
$ |
945,791 |
$ |
689,950 |
|||||||
Adjusted EBITDA: |
|||||||||||||||
Lithium |
$ |
112,944 |
$ |
68,637 |
$ |
327,996 |
$ |
196,617 |
|||||||
PCS |
17,274 |
23,082 |
54,793 |
64,244 |
|||||||||||
Total Lithium and Advanced Materials |
$ |
130,218 |
$ |
91,719 |
$ |
382,789 |
$ |
260,861 |
|||||||
See accompanying notes to the condensed consolidated financial information and non-GAAP reconciliations below. |
Notes to the Condensed Consolidated Financial Information
(a) Non-operating pension and OPEB items, consisting of MTM actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to our reportable segments and are included in the Corporate category. Although non-operating pension and OPEB items are included in Cost of goods sold and Selling, general and administrative expenses in accordance with GAAP, we believe that these components of pension cost are mainly driven by market performance, and we manage these separately from the operational performance of our businesses. Non-operating pension and OPEB items included in Cost of goods sold and Selling, general and administrative expenses were as follows (in millions):
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Cost of goods sold: |
|||||||||||||||
Interest cost and expected return on assets, net |
$ |
(0.1) |
$ |
(0.2) |
$ |
(0.4) |
$ |
(0.5) |
|||||||
Total |
$ |
(0.1) |
$ |
(0.2) |
$ |
(0.4) |
$ |
(0.5) |
|||||||
Selling, general and administrative expenses: |
|||||||||||||||
Interest cost and expected return on assets, net |
$ |
(0.9) |
$ |
(0.1) |
$ |
(2.7) |
$ |
(0.3) |
|||||||
Total |
$ |
(0.9) |
$ |
(0.1) |
$ |
(2.7) |
$ |
(0.3) |
(b) In addition to the non-operating pension and OPEB items disclosed above, we have identified certain other items from continuing operations and excluded them from our 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, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Utilization of inventory markup(1) |
$ |
— |
$ |
— |
$ |
0.16 |
$ |
— |
|||||||
Write-off of research and development fixed assets(2) |
— |
0.01 |
— |
0.01 |
|||||||||||
Restructuring and other, net(3) |
— |
— |
0.11 |
— |
|||||||||||
Acquisition and integration related costs(4) |
0.02 |
0.03 |
0.18 |
0.26 |
|||||||||||
Gain on sales of businesses, net(5) |
— |
— |
— |
(1.02) |
|||||||||||
Gain on sales of properties, net(6) |
— |
(0.01) |
— |
(0.01) |
|||||||||||
Gain on acquisition(7) |
0.01 |
— |
(0.05) |
— |
|||||||||||
Loss on extinguishment of debt(8) |
— |
— |
0.34 |
— |
|||||||||||
Multiemployer plan shortfall contributions(9) |
0.01 |
— |
0.04 |
— |
|||||||||||
Other(10) |
(0.01) |
— |
0.04 |
— |
|||||||||||
Discrete tax items(11) |
(0.01) |
(0.05) |
0.02 |
0.01 |
|||||||||||
Total non-recurring and other unusual items |
$ |
0.02 |
$ |
(0.02) |
$ |
0.84 |
$ |
(0.75) |
(1) In connection with the acquisition of the lithium hydroxide and lithium carbonate conversion business of
(2) Included in Research and development expenses for the three and nine months ended
(3) The nine months ended
Nine Months Ended |
|||
September 30, 2017 |
|||
Restructuring and other costs: |
|||
Cost of goods sold |
$ |
2.9 |
|
Selling, general and administrative expenses |
8.4 |
||
Research and development expenses |
5.8 |
||
Total |
$ |
17.1 |
|
Total restructuring and other costs, after income taxes |
$ |
13.0 |
|
Total restructuring and other costs, per diluted share |
$ |
0.11 |
(4) Acquisition and integration related costs for the three and nine months ended
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Acquisition and integration related costs: |
|||||||||||||||
Cost of goods sold |
$ |
1.8 |
$ |
— |
$ |
12.5 |
$ |
— |
|||||||
Selling, general and administrative expenses |
3.8 |
— |
13.9 |
— |
|||||||||||
Acquisition and integration related costs |
— |
6.7 |
— |
44.3 |
|||||||||||
Total |
$ |
5.6 |
$ |
6.7 |
$ |
26.4 |
$ |
44.3 |
|||||||
Total acquisition and integration related costs, |
$ |
2.6 |
$ |
3.1 |
$ |
20.1 |
$ |
29.5 |
|||||||
Total acquisition and integration related costs, |
$ |
0.02 |
$ |
0.03 |
$ |
0.18 |
$ |
0.26 |
(5) Included in Gain on sales of businesses, net, for the nine months ended
(6) Included in Other (expenses) income, net for the three and nine months ended
(7) Included in Other (expenses) income, net, for the nine months ended
(8) Included in Interest and financing expenses for the nine months ended
(9) Included in Selling, general and administrative expenses for the nine months ended
(10) Other adjustments for the three months ended
- Cost of goods sold -
$1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment. - Other (expenses) income, net -
$1.1 million related to a reversal of a liability associated with the previous disposal of a property, partially offset by the revision of tax indemnification expenses of$0.7 million primarily related to the filing of tax returns for a previously disposed business.
After income taxes, these net gains totaled
Other adjustments for the nine months ended
- Cost of goods sold -
$1.3 million reversal of deferred income related to an abandoned project at an unconsolidated investment. - Selling, general and administrative expenses -
$1.0 million related to a reversal of an accrual recorded as part of purchase accounting from a previous acquisition. - Other (expenses) income, net -
$3.2 million of asset retirement obligation charges related to the revision of an estimate at a site formerly owned by Albemarle, a loss of$2.1 million associated with the previous disposal of a business, final settlement claims associated with the previous disposal of a business of$2.0 million and the revision of tax indemnification expenses of$1.9 million primarily related to the filing of tax returns and a competent authority agreement for a previously disposed business, partially offset by a reversal of a liability associated with the previous disposal of a property of$1.1 million .
After income taxes, these net charges totaled
(11) Included in Income tax expense for the three and nine months ended
(c) On June 17, 2016, the Company entered into a definitive agreement to sell the Chemetall Surface Treatment business to BASF SE. On December 14, 2016, the Company closed the sale of this business for cash proceeds of approximately $3.1 billion, net of purchase price adjustments. Income (loss) from discontinued operations (net of tax) in the consolidated statements of income for the nine months ended September 30, 2016 includes a discrete non-cash charge of $381.5 million due to a change in the Company's assertion over book and tax basis differences related to a U.S. entity being sold, as well as a discrete non-cash charge of $29.8 million related to a change in the Company's assertion over reinvestment of foreign undistributed earnings.
(d) Totals may not add due to rounding.
Additional Information
It should be noted that adjusted net income from continuing operations, adjusted diluted earnings per share attributable to
A description of other non-GAAP financial measures that we use to evaluate our 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 in the Investors section of our website at www.albemarle.com, under "Non-GAAP Reconciliations" under "Financials." Also, see the following pages for supplemental reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP. 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
(In Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income from continuing operations, EBITDA and adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to
Three Months Ended |
Nine Months Ended |
||||||||||||||
September 30, |
September 30, |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net income attributable to Albemarle Corporation |
$ |
118,670 |
$ |
128,220 |
$ |
273,216 |
$ |
41,585 |
|||||||
Add back: |
|||||||||||||||
(Income) loss from discontinued operations (net of tax) |
— |
(23,185) |
— |
357,843 |
|||||||||||
Earnings from continuing operations |
118,670 |
105,035 |
273,216 |
399,428 |
|||||||||||
Add back: |
|||||||||||||||
Non-operating pension and OPEB items from continuing operations |
(694) |
(154) |
(2,093) |
(260) |
|||||||||||
Non-recurring and other unusual items from continuing operations |
2,575 |
(2,170) |
94,918 |
(84,218) |
|||||||||||
Adjusted net income from continuing operations |
$ |
120,551 |
$ |
102,711 |
$ |
366,041 |
$ |
314,950 |
|||||||
Adjusted diluted earnings per share from continuing operations |
$ |
1.08 |
$ |
0.91 |
$ |
3.26 |
$ |
2.78 |
|||||||
Weighted-average common shares outstanding – diluted |
111,975 |
113,448 |
112,456 |
113,131 |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
118,670 |
$ |
128,220 |
$ |
273,216 |
$ |
41,585 |
|||||||
Add back: |
|||||||||||||||
(Income) loss from discontinued operations (net of tax) |
— |
(23,185) |
— |
357,843 |
|||||||||||
Interest and financing expenses |
15,792 |
15,946 |
98,895 |
46,860 |
|||||||||||
Income tax expense |
18,495 |
12,394 |
53,596 |
61,535 |
|||||||||||
Depreciation and amortization |
49,895 |
47,974 |
144,087 |
141,288 |
|||||||||||
EBITDA |
202,852 |
181,349 |
569,794 |
649,111 |
|||||||||||
Non-operating pension and OPEB items |
(1,028) |
(231) |
(3,144) |
(779) |
|||||||||||
Non-recurring and other unusual items (excluding items associated |
7,559 |
7,211 |
73,050 |
(77,499) |
|||||||||||
Adjusted EBITDA |
$ |
209,383 |
$ |
188,329 |
$ |
639,700 |
$ |
570,833 |
|||||||
Net sales |
$ |
754,866 |
$ |
654,010 |
$ |
2,214,187 |
$ |
1,980,548 |
|||||||
EBITDA margin |
26.9 |
% |
27.7 |
% |
25.7 |
% |
32.8 |
% |
|||||||
Adjusted EBITDA margin |
27.7 |
% |
28.8 |
% |
28.9 |
% |
28.8 |
% |
See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income attributable to
Lithium |
Bromine |
Refining |
Reportable |
All |
Corporate |
Consolidated |
% of |
|||||||||||||||||||||||
Three months ended September 30, 2017: |
||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
103,199 |
$ |
53,760 |
$ |
34,392 |
$ |
191,351 |
$ |
(1,776) |
$ |
(70,905) |
$ |
118,670 |
15.7 |
% |
||||||||||||||
Depreciation and amortization |
26,136 |
10,176 |
9,978 |
46,290 |
2,082 |
1,523 |
49,895 |
6.6 |
% |
|||||||||||||||||||||
Non-recurring and other unusual items |
883 |
— |
(1,250) |
(367) |
— |
7,926 |
7,559 |
1.0 |
% |
|||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
15,792 |
15,792 |
2.1 |
% |
|||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
18,495 |
18,495 |
2.4 |
% |
|||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(1,028) |
(1,028) |
(0.1) |
% |
|||||||||||||||||||||
Adjusted EBITDA |
$ |
130,218 |
$ |
63,936 |
$ |
43,120 |
$ |
237,274 |
$ |
306 |
$ |
(28,197) |
$ |
209,383 |
27.7 |
% |
||||||||||||||
Three months ended September 30, 2016: |
||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
66,166 |
$ |
41,621 |
$ |
55,981 |
$ |
163,768 |
$ |
3,806 |
$ |
(39,354) |
$ |
128,220 |
19.6 |
% |
||||||||||||||
Depreciation and amortization |
25,553 |
10,186 |
8,979 |
44,718 |
1,664 |
1,592 |
47,974 |
7.3 |
% |
|||||||||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
— |
7,211 |
7,211 |
1.1 |
% |
|||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
15,946 |
15,946 |
2.4 |
% |
|||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
12,394 |
12,394 |
1.9 |
% |
|||||||||||||||||||||
Income from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
(23,185) |
(23,185) |
(3.5) |
% |
|||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(231) |
(231) |
— |
% |
|||||||||||||||||||||
Adjusted EBITDA |
$ |
91,719 |
$ |
51,807 |
$ |
64,960 |
$ |
208,486 |
$ |
5,470 |
$ |
(25,627) |
$ |
188,329 |
28.8 |
% |
||||||||||||||
Nine months ended September 30, 2017: |
||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
292,655 |
$ |
164,193 |
$ |
115,329 |
$ |
572,177 |
$ |
1,622 |
$ |
(300,583) |
$ |
273,216 |
12.3 |
% |
||||||||||||||
Depreciation and amortization |
74,157 |
30,306 |
28,698 |
133,161 |
6,284 |
4,642 |
144,087 |
6.5 |
% |
|||||||||||||||||||||
Non-recurring and other unusual items |
15,977 |
— |
(1,250) |
14,727 |
— |
58,323 |
73,050 |
3.3 |
% |
|||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
98,895 |
98,895 |
4.5 |
% |
|||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
53,596 |
53,596 |
2.4 |
% |
|||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(3,144) |
(3,144) |
(0.1) |
% |
|||||||||||||||||||||
Adjusted EBITDA |
$ |
382,789 |
$ |
194,499 |
$ |
142,777 |
$ |
720,065 |
$ |
7,906 |
$ |
(88,271) |
$ |
639,700 |
28.9 |
% |
||||||||||||||
Nine months ended September 30, 2016: |
||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
186,373 |
$ |
150,221 |
$ |
154,767 |
$ |
491,361 |
$ |
133,012 |
$ |
(582,788) |
$ |
41,585 |
2.1 |
% |
||||||||||||||
Depreciation and amortization |
74,488 |
29,756 |
26,853 |
131,097 |
5,629 |
4,562 |
141,288 |
7.1 |
% |
|||||||||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
(123,831) |
46,332 |
(77,499) |
(3.9) |
% |
|||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
46,860 |
46,860 |
2.4 |
% |
|||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
61,535 |
61,535 |
3.1 |
% |
|||||||||||||||||||||
Loss from discontinued operations (net of |
— |
— |
— |
— |
— |
357,843 |
357,843 |
18.1 |
% |
|||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(779) |
(779) |
— |
% |
|||||||||||||||||||||
Adjusted EBITDA |
$ |
260,861 |
$ |
179,977 |
$ |
181,620 |
$ |
622,458 |
$ |
14,810 |
$ |
(66,435) |
$ |
570,833 |
28.8 |
% |
Lithium |
PCS |
Total |
|||||||||
Three months ended September 30, 2017: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
89,745 |
$ |
13,454 |
$ |
103,199 |
|||||
Depreciation and amortization |
22,316 |
3,820 |
26,136 |
||||||||
Non-recurring and other unusual items |
883 |
— |
883 |
||||||||
Adjusted EBITDA |
$ |
112,944 |
$ |
17,274 |
$ |
130,218 |
|||||
Three months ended September 30, 2016: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
46,848 |
$ |
19,318 |
$ |
66,166 |
|||||
Depreciation and amortization |
21,789 |
3,764 |
25,553 |
||||||||
Adjusted EBITDA |
$ |
68,637 |
$ |
23,082 |
$ |
91,719 |
|||||
Nine months ended September 30, 2017: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
249,178 |
$ |
43,477 |
$ |
292,655 |
|||||
Depreciation and amortization |
62,841 |
11,316 |
74,157 |
||||||||
Non-recurring and other unusual items |
15,977 |
— |
15,977 |
||||||||
Adjusted EBITDA |
$ |
327,996 |
$ |
54,793 |
$ |
382,789 |
|||||
Nine months ended September 30, 2016: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
133,323 |
$ |
53,050 |
$ |
186,373 |
|||||
Depreciation and amortization |
63,294 |
11,194 |
74,488 |
||||||||
Adjusted EBITDA |
$ |
196,617 |
$ |
64,244 |
$ |
260,861 |
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 reporting in accordance with GAAP.
Income from |
Income tax expense |
Effective income tax |
||||||||
Three months ended September 30, 2017: |
||||||||||
As reported |
$ |
129,644 |
$ |
18,495 |
14.3 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB |
6,531 |
4,650 |
||||||||
As adjusted |
$ |
136,175 |
$ |
23,145 |
17.0 |
% |
||||
Three months ended September 30, 2016: |
||||||||||
As reported |
$ |
111,953 |
$ |
12,394 |
11.1 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB |
6,980 |
9,304 |
||||||||
As adjusted |
$ |
118,933 |
$ |
21,698 |
18.2 |
% |
||||
Nine months ended September 30, 2017: |
||||||||||
As reported |
$ |
304,872 |
$ |
53,596 |
17.6 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB |
122,707 |
29,882 |
||||||||
As adjusted |
$ |
427,579 |
$ |
83,478 |
19.5 |
% |
||||
Nine months ended September 30, 2016: |
||||||||||
As reported |
$ |
445,079 |
$ |
61,535 |
13.8 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB |
(78,278) |
6,200 |
||||||||
As adjusted |
$ |
366,801 |
$ |
67,735 |
18.5 |
% |
View original content with multimedia:https://www.prnewswire.com/news-releases/albemarle-continues-double-digit-growth-in-third-quarter-300552406.html
SOURCE
Matt Juneau, 225.388.7940
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