News
Albemarle exceeds second quarter 2016 expectations and raises guidance
August 3, 2016
Second quarter 2016 highlights:
- Signed definitive agreement to sell Chemetall® Surface Treatment business to
BASF SE
- Due to a non-recurring, non-cash tax charge of
$416.7 million related to the decision to sell the Chemetall Surface Treatment business, second quarter results in a loss of$314.8 million , or$2.78 per diluted share
- Adjusted net income, including the results of the Chemetall Surface Treatment business, was
$123.1 million , or$1.09 per diluted share; adjusted net income from continuing operations was$105.1 million , or$0.93 per diluted share
- Second quarter adjusted EBITDA was
$190.5 million , an increase of 11% over the prior year, excluding the impact of currency and divestitures
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
In thousands, except per share amounts |
2016 |
2015 |
2016 |
2015 |
|||||||||||
Net sales |
$ |
669,327 |
$ |
718,290 |
$ |
1,326,538 |
$ |
1,410,603 |
|||||||
Adjusted EBITDA |
$ |
190,471 |
$ |
181,358 |
$ |
382,504 |
$ |
400,858 |
|||||||
Net income from continuing operations |
$ |
95,586 |
$ |
49,218 |
$ |
313,822 |
$ |
98,471 |
|||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(314,821) |
$ |
52,147 |
$ |
(86,635) |
$ |
95,262 |
|||||||
Diluted earnings per share from continuing operations |
$ |
0.74 |
$ |
0.37 |
$ |
2.61 |
$ |
0.79 |
|||||||
Diluted (loss) earnings per share attributable to Albemarle Corporation |
$ |
(2.78) |
$ |
0.46 |
$ |
(0.77) |
$ |
0.86 |
|||||||
Non-operating pension and OPEB items(a) |
— |
(0.01) |
— |
(0.02) |
|||||||||||
Non-recurring and other unusual items(b) |
0.19 |
0.37 |
(0.73) |
1.02 |
|||||||||||
Discontinued operations(c) |
3.52 |
(0.09) |
3.38 |
(0.07) |
|||||||||||
Adjusted diluted earnings per share from continuing |
$ |
0.93 |
$ |
0.73 |
$ |
1.88 |
$ |
1.80 |
|||||||
See accompanying notes (a) through (d) to the condensed consolidated financial information and non-GAAP reconciliations. |
Net income from continuing operations for the six months ended June 30, 2016 was
On
"Our great start to 2016 continued in the second quarter as we announced the strategic sale of Chemetall® Surface Treatment at a very healthy multiple, coupled with year over year adjusted EBITDA growth of 11% in the businesses we will operate after the sale is completed," said
On
Quarterly Segment Results
Effective
Lithium and Advanced Materials reported net sales of
Bromine Specialties reported net sales of
Refining Solutions reported net sales of
On
All Other net sales were
In summary, total net sales of
Corporate Results
Corporate adjusted EBITDA was a loss of
Income Taxes
Our adjusted effective income tax rates, which exclude non-recurring, other unusual and non-operating pension and OPEB items, were 16.2% and 28.9% for the second quarter of 2016 and 2015, respectively. Our effective tax rate continued to be influenced by the level and geographic mix of income, and benefits from a favorable mix of income in lower tax jurisdictions.
Cash Flow
Our cash flow from operations was approximately
Outlook
Favorable performance in Lithium, Refining Solutions and Bromine Specialties continues to outpace headwinds in our other businesses. Based on this, and the impact of a lower effective tax rate, we are raising our annual guidance for continuing operations as follows:
Previous Outlook |
Increase |
Current Outlook |
|||
Net sales |
$2.5 - $2.7 billion |
$0.0 - $0.1 billion |
$2.5 - $2.8 billion |
||
Adjusted EBITDA |
$700 - $745 million |
$5 million |
$705 - $750 million |
||
Adjusted EPS (per diluted share) |
$3.25 - $3.50 |
$0.10 |
$3.35 - $3.60 |
Earnings Call
The Company's performance for the second quarter ended June 30, 2016 will be discussed on a conference call at
About Albemarle
Forward-Looking Statements
Some of the information presented in this press release and the conference call and discussions that follow, including, without limitation, statements with respect to the sale of the Chemetall Surface Treatment business and the anticipated consequences and benefits of the transaction, 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. There can be no assurance that actual results will not differ materially. 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, including the integration of Rockwood's operations, and realize estimated synergies; and the other factors detailed from time to time in the reports we file with the
Albemarle Corporation and Subsidiaries Consolidated Statements of Income (In Thousands Except Per Share Amounts) (Unaudited) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Net sales |
$ |
669,327 |
$ |
718,290 |
$ |
1,326,538 |
$ |
1,410,603 |
|||||||
Cost of goods sold(a)(b) |
421,223 |
506,259 |
835,900 |
1,007,188 |
|||||||||||
Gross profit |
248,104 |
212,031 |
490,638 |
403,415 |
|||||||||||
Selling, general and administrative expenses(a) |
86,055 |
88,010 |
168,686 |
171,660 |
|||||||||||
Research and development expenses |
20,500 |
21,925 |
40,372 |
45,421 |
|||||||||||
Gain on sales of businesses, net(b) |
(974) |
— |
(122,298) |
— |
|||||||||||
Acquisition and integration related costs(b) |
19,030 |
22,832 |
37,588 |
80,657 |
|||||||||||
Operating profit |
123,493 |
79,264 |
366,290 |
105,677 |
|||||||||||
Interest and financing expenses(b) |
(15,800) |
(20,599) |
(30,914) |
(42,899) |
|||||||||||
Other (expenses) income, net(b) |
(2,297) |
286 |
(2,250) |
50,110 |
|||||||||||
Income from continuing operations before income taxes and equity in net income of unconsolidated investments |
105,396 |
58,951 |
333,126 |
112,888 |
|||||||||||
Income tax expense(b) |
23,656 |
14,851 |
49,141 |
28,636 |
|||||||||||
Income from continuing operations before equity in net income of unconsolidated investments |
81,740 |
44,100 |
283,985 |
84,252 |
|||||||||||
Equity in net income of unconsolidated investments (net of |
13,846 |
5,118 |
29,837 |
14,219 |
|||||||||||
Net income from continuing operations |
95,586 |
49,218 |
313,822 |
98,471 |
|||||||||||
(Loss) income from discontinued operations (net of tax)(c) |
(398,340) |
10,122 |
(381,028) |
8,024 |
|||||||||||
Net (loss) income |
(302,754) |
59,340 |
(67,206) |
106,495 |
|||||||||||
Net income attributable to noncontrolling interests |
(12,067) |
(7,193) |
(19,429) |
(11,233) |
|||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(314,821) |
$ |
52,147 |
$ |
(86,635) |
$ |
95,262 |
|||||||
Basic earnings (loss) per share |
|||||||||||||||
Continuing operations |
$ |
0.74 |
$ |
0.37 |
$ |
2.62 |
$ |
0.79 |
|||||||
Discontinued operations |
(3.54) |
0.09 |
(3.39) |
0.07 |
|||||||||||
$ |
(2.80) |
$ |
0.46 |
$ |
(0.77) |
$ |
0.86 |
||||||||
Diluted earnings (loss) per share |
|||||||||||||||
Continuing operations |
$ |
0.74 |
$ |
0.37 |
$ |
2.61 |
$ |
0.79 |
|||||||
Discontinued operations |
(3.52) |
0.09 |
(3.38) |
0.07 |
|||||||||||
$ |
(2.78) |
$ |
0.46 |
$ |
(0.77) |
$ |
0.86 |
||||||||
Weighted-average common shares outstanding – basic |
112,339 |
112,189 |
112,300 |
110,160 |
|||||||||||
Weighted-average common shares outstanding – diluted |
113,123 |
112,607 |
112,947 |
110,536 |
|||||||||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) |
|||||||
June 30, |
December 31, |
||||||
2016 |
2015 |
||||||
ASSETS |
|||||||
Cash and cash equivalents |
$ |
193,661 |
$ |
213,734 |
|||
Other current assets |
1,078,158 |
975,336 |
|||||
Assets held for sale |
255,941 |
641,932 |
|||||
Total current assets |
1,527,760 |
1,831,002 |
|||||
Property, plant and equipment |
3,846,686 |
3,700,472 |
|||||
Less accumulated depreciation and amortization |
1,500,554 |
1,379,377 |
|||||
Net property, plant and equipment |
2,346,132 |
2,321,095 |
|||||
Noncurrent assets held for sale |
2,944,071 |
2,971,455 |
|||||
Other assets and intangibles |
2,494,418 |
2,474,402 |
|||||
Total assets |
$ |
9,312,381 |
$ |
9,597,954 |
|||
LIABILITIES AND EQUITY |
|||||||
Current portion of long-term debt |
$ |
493,705 |
$ |
674,994 |
|||
Other current liabilities |
520,084 |
612,093 |
|||||
Liabilities held for sale |
145,269 |
329,598 |
|||||
Total current liabilities |
1,159,058 |
1,616,685 |
|||||
Long-term debt |
3,019,478 |
3,142,163 |
|||||
Noncurrent liabilities held for sale |
455,452 |
464,207 |
|||||
Other noncurrent liabilities |
573,038 |
588,734 |
|||||
Deferred income taxes |
799,009 |
384,852 |
|||||
Albemarle Corporation shareholders' equity |
3,156,615 |
3,254,392 |
|||||
Noncontrolling interests |
149,731 |
146,921 |
|||||
Total liabilities and equity |
$ |
9,312,381 |
$ |
9,597,954 |
|||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) |
|||||||
Six Months Ended |
|||||||
June 30, |
|||||||
2016 |
2015 |
||||||
Cash and cash equivalents at beginning of year |
$ |
213,734 |
$ |
2,489,768 |
|||
Cash and cash equivalents at end of period |
$ |
193,661 |
$ |
207,238 |
|||
Sources of cash and cash equivalents: |
|||||||
Net (loss) income |
$ |
(67,206) |
$ |
106,495 |
|||
Cash proceeds from divestitures, net |
310,599 |
— |
|||||
Proceeds from borrowings of long-term debt |
— |
1,000,000 |
|||||
Other borrowings, net |
67,865 |
133,699 |
|||||
Dividends received from unconsolidated investments and nonmarketable securities |
31,522 |
45,526 |
|||||
Decrease in restricted cash |
— |
57,550 |
|||||
Uses of cash and cash equivalents: |
|||||||
Working capital changes |
(108,016) |
(44,932) |
|||||
Capital expenditures |
(99,509) |
(111,723) |
|||||
Acquisition of Rockwood, net of cash acquired |
— |
(2,051,645) |
|||||
Other acquisitions, net of cash acquired |
— |
(48,845) |
|||||
Cash payments related to acquisitions and other |
(81,988) |
— |
|||||
Repayments of long-term debt |
(382,162) |
(1,331,648) |
|||||
Pension and postretirement contributions |
(9,524) |
(10,973) |
|||||
Dividends paid to shareholders |
(66,791) |
(54,238) |
|||||
Dividends paid to noncontrolling interests |
(17,052) |
(8,282) |
|||||
Non-cash and other items: |
|||||||
Depreciation and amortization |
128,505 |
131,469 |
|||||
Gain on sales of businesses, net |
(122,298) |
— |
|||||
Pension and postretirement expense (benefit) |
3,390 |
(1,071) |
|||||
Deferred income taxes |
414,736 |
(41,207) |
|||||
Equity in net income of unconsolidated investments (net of tax) |
(30,861) |
(16,186) |
|||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Consolidated Summary of Segment Results (In Thousands) (Unaudited) |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Net sales: |
|||||||||||||||
Lithium and Advanced Materials |
$ |
233,353 |
$ |
213,003 |
$ |
449,526 |
$ |
411,777 |
|||||||
Bromine Specialties |
206,863 |
223,959 |
403,416 |
413,551 |
|||||||||||
Refining Solutions |
178,012 |
164,573 |
348,591 |
343,739 |
|||||||||||
All Other |
50,626 |
113,404 |
122,715 |
235,773 |
|||||||||||
Corporate |
473 |
3,351 |
2,290 |
5,763 |
|||||||||||
Total net sales |
$ |
669,327 |
$ |
718,290 |
$ |
1,326,538 |
$ |
1,410,603 |
|||||||
Adjusted EBITDA: |
|||||||||||||||
Lithium and Advanced Materials |
$ |
82,668 |
$ |
79,985 |
$ |
169,142 |
$ |
157,580 |
|||||||
Bromine Specialties |
66,562 |
68,697 |
128,170 |
121,630 |
|||||||||||
Refining Solutions |
61,586 |
48,200 |
116,660 |
90,393 |
|||||||||||
All Other |
876 |
9,714 |
9,340 |
23,278 |
|||||||||||
Corporate(a) |
(21,221) |
(25,238) |
(40,808) |
7,977 |
|||||||||||
Total adjusted EBITDA |
$ |
190,471 |
$ |
181,358 |
$ |
382,504 |
$ |
400,858 |
|||||||
Lithium and Advanced Materials - details by product category: |
|||||||||||||||
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Net sales: |
|||||||||||||||
Lithium |
$ |
157,713 |
$ |
127,021 |
$ |
294,273 |
$ |
241,407 |
|||||||
PCS |
75,640 |
85,982 |
155,253 |
170,370 |
|||||||||||
Total Lithium and Advanced Materials |
$ |
233,353 |
$ |
213,003 |
$ |
449,526 |
$ |
411,777 |
|||||||
Adjusted EBITDA: |
|||||||||||||||
Lithium |
$ |
64,146 |
$ |
53,645 |
$ |
127,980 |
$ |
104,223 |
|||||||
PCS |
18,522 |
26,340 |
41,162 |
53,357 |
|||||||||||
Total Lithium and Advanced Materials |
$ |
82,668 |
$ |
79,985 |
$ |
169,142 |
$ |
157,580 |
|||||||
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 |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Cost of goods sold: |
|||||||||||||||
MTM actuarial gain |
$ |
— |
$ |
(0.1) |
$ |
— |
$ |
(0.1) |
|||||||
Interest cost and expected return on assets, net |
(0.2) |
(0.5) |
(0.3) |
(0.8) |
|||||||||||
Total |
$ |
(0.2) |
$ |
(0.6) |
$ |
(0.3) |
$ |
(0.9) |
|||||||
Selling, general and administrative expenses: |
|||||||||||||||
Interest cost and expected return on assets, net |
$ |
(0.1) |
$ |
(0.9) |
$ |
(0.2) |
$ |
(1.7) |
|||||||
Total |
$ |
(0.1) |
$ |
(0.9) |
$ |
(0.2) |
$ |
(1.7) |
(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 |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Utilization of inventory markup(1) |
$ |
— |
$ |
0.23 |
$ |
— |
$ |
0.46 |
|||||||
Gain on sales of businesses, net(2) |
— |
— |
(1.02) |
— |
|||||||||||
Acquisition and integration related costs(3) |
0.11 |
0.14 |
0.23 |
0.51 |
|||||||||||
Interest and financing expenses related to Rockwood acquisition(4) |
— |
— |
— |
0.01 |
|||||||||||
Financing fees related to Rockwood acquisition(5) |
— |
— |
— |
0.03 |
|||||||||||
Discrete tax items(6) |
0.08 |
(0.01) |
0.06 |
0.02 |
|||||||||||
Total non-recurring and other unusual items |
$ |
0.19 |
$ |
0.36 |
$ |
(0.73) |
$ |
1.03 |
(1) In connection with the acquisition of Rockwood, the Company valued Rockwood's existing inventory at fair value as of the acquisition date, which resulted in a markup of the underlying net book value of the inventory. The inventory markup was expensed over the estimated remaining selling period. For the three months ended
(2) Included in Gain on sales of businesses, net, for the six months ended
(3) Acquisition and integration related costs consisted of the following:
Three months ended
$18.4 million of integration costs resulting from the acquisition of Rockwood and$0.6 million in connection with other significant projects. After income taxes, these charges totaled$13.1 million , or$0.11 per share.
Six months ended
$36.1 million of integration costs resulting from the acquisition of Rockwood and$1.5 million in connection with other significant projects. After income taxes, these charges totaled$26.4 million , or$0.23 per share.
Three months ended
$19.9 million directly related to the acquisition of Rockwood and$2.9 million in connection with other significant projects. After income taxes, these charges totaled$15.4 million , or$0.14 per share.
Six months ended
$75.7 million directly related to the acquisition of Rockwood and$5.0 million in connection with other significant projects. After income taxes, these charges totaled$55.8 million , or$0.51 per share.
(4) Included in Interest and financing expenses for the six months ended
(5) Included in Other (expenses) income, net, for the six months ended
(6) Included in Income tax expense for the three and six months ended
(c) On June 17, 2016, the Company entered into a definitive agreement to sell the Chemetall Surface Treatment business to BASF SE for proceeds of approximately $3.2 billion, subject to adjustment with respect to certain pension liabilities, cash, working capital and indebtedness. The sale is subject to regulatory approvals and other customary closing conditions, and is expected to close in the fourth quarter of 2016. Loss from discontinued operations (net of tax) in the consolidated statements of income for the second quarter of 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 $35.2 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 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 below for supplemental reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP.
ALBEMARLE CORPORATION AND SUBSIDIARIES
Non-GAAP Reconciliations
(In Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income attributable to
Three Months Ended |
Six Months Ended |
||||||||||||||
June 30, |
June 30, |
||||||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(314,821) |
$ |
52,147 |
$ |
(86,635) |
$ |
95,262 |
|||||||
Add back: |
|||||||||||||||
Non-operating pension and OPEB items from continuing operations |
(225) |
(998) |
(106) |
(1,704) |
|||||||||||
Non-recurring and other unusual items from continuing operations (net of tax) |
21,780 |
41,171 |
(82,048) |
113,105 |
|||||||||||
Loss (income) from discontinued operations (net of tax) |
398,340 |
(10,122) |
381,028 |
(8,024) |
|||||||||||
Adjusted net income from continuing operations |
105,074 |
82,198 |
212,239 |
198,639 |
|||||||||||
(Loss) income from discontinued operations (net of tax) |
(398,340) |
10,122 |
(381,028) |
8,024 |
|||||||||||
Add back: |
|||||||||||||||
Non-operating pension and OPEB items from discontinued operations (net of tax) |
67 |
136 |
156 |
(1,385) |
|||||||||||
Non-recurring and other unusual items from discontinued operations (net of tax) |
416,279 |
2,636 |
417,514 |
17,018 |
|||||||||||
Adjusted net income attributable to Albemarle Corporation |
$ |
123,080 |
$ |
95,092 |
$ |
248,881 |
$ |
222,296 |
|||||||
Adjusted diluted earnings per share attributable to Albemarle Corporation |
$ |
1.09 |
$ |
0.84 |
$ |
2.20 |
$ |
2.01 |
|||||||
Weighted-average common shares outstanding – diluted |
113,123 |
112,607 |
112,947 |
110,536 |
|||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(314,821) |
$ |
52,147 |
$ |
(86,635) |
$ |
95,262 |
|||||||
Add back: |
|||||||||||||||
Loss (income) from discontinued operations (net of tax) |
398,340 |
(10,122) |
381,028 |
(8,024) |
|||||||||||
Interest and financing expenses |
15,800 |
20,599 |
30,914 |
42,899 |
|||||||||||
Income tax expense |
23,656 |
14,851 |
49,141 |
28,636 |
|||||||||||
Depreciation and amortization |
49,705 |
48,372 |
93,314 |
94,162 |
|||||||||||
EBITDA |
172,680 |
125,847 |
467,762 |
252,935 |
|||||||||||
Non-operating pension and OPEB items |
(265) |
(1,522) |
(548) |
(2,609) |
|||||||||||
Non-recurring and other unusual items (excluding items associated with interest expense) |
18,056 |
57,033 |
(84,710) |
150,532 |
|||||||||||
Adjusted EBITDA |
$ |
190,471 |
$ |
181,358 |
$ |
382,504 |
$ |
400,858 |
|||||||
Net sales |
$ |
669,327 |
$ |
718,290 |
$ |
1,326,538 |
$ |
1,410,603 |
|||||||
EBITDA margin |
25.8 |
% |
17.5 |
% |
35.3 |
% |
17.9 |
% |
|||||||
Adjusted EBITDA margin |
28.5 |
% |
25.2 |
% |
28.8 |
% |
28.4 |
% |
See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income (loss) attributable to
Lithium and Advanced Materials |
Bromine Specialties |
Refining Solutions |
Reportable Segments Total |
All Other |
Corporate |
Consolidated Total |
|||||||||||||||||||||
Three months ended June 30, 2016: |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
56,880 |
$ |
56,747 |
$ |
52,472 |
$ |
166,099 |
$ |
(1,503) |
$ |
(479,417) |
$ |
(314,821) |
|||||||||||||
Depreciation and amortization |
25,788 |
9,815 |
9,114 |
44,717 |
3,353 |
1,635 |
49,705 |
||||||||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
(974) |
19,030 |
18,056 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
15,800 |
15,800 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
23,656 |
23,656 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
398,340 |
398,340 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(265) |
(265) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
82,668 |
$ |
66,562 |
$ |
61,586 |
$ |
210,816 |
$ |
876 |
$ |
(21,221) |
$ |
190,471 |
|||||||||||||
Three months ended June 30, 2015: |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
22,530 |
$ |
60,486 |
$ |
39,717 |
$ |
122,733 |
$ |
3,612 |
$ |
(74,198) |
$ |
52,147 |
|||||||||||||
Depreciation and amortization |
23,632 |
8,211 |
8,483 |
40,326 |
5,724 |
2,322 |
48,372 |
||||||||||||||||||||
Non-recurring and other unusual items |
33,823 |
— |
— |
33,823 |
378 |
22,832 |
57,033 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
20,599 |
20,599 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
14,851 |
14,851 |
||||||||||||||||||||
Income from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
(10,122) |
(10,122) |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(1,522) |
(1,522) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
79,985 |
$ |
68,697 |
$ |
48,200 |
$ |
196,882 |
$ |
9,714 |
$ |
(25,238) |
$ |
181,358 |
|||||||||||||
Six months ended June 30, 2016: |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
120,207 |
$ |
108,600 |
$ |
98,786 |
$ |
327,593 |
$ |
129,206 |
$ |
(543,434) |
$ |
(86,635) |
|||||||||||||
Depreciation and amortization |
48,935 |
19,570 |
17,874 |
86,379 |
3,965 |
2,970 |
93,314 |
||||||||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
(123,831) |
39,121 |
(84,710) |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
30,914 |
30,914 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
49,141 |
49,141 |
||||||||||||||||||||
Loss from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
381,028 |
381,028 |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(548) |
(548) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
169,142 |
$ |
128,170 |
$ |
116,660 |
$ |
413,972 |
$ |
9,340 |
$ |
(40,808) |
$ |
382,504 |
|||||||||||||
Six months ended June 30, 2015: |
|||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation |
$ |
49,721 |
$ |
104,958 |
$ |
73,800 |
$ |
228,479 |
$ |
9,027 |
$ |
(142,244) |
$ |
95,262 |
|||||||||||||
Depreciation and amortization |
45,454 |
16,672 |
16,593 |
78,719 |
11,222 |
4,221 |
94,162 |
||||||||||||||||||||
Non-recurring and other unusual items (excluding items associated with interest expense) |
62,405 |
— |
— |
62,405 |
3,029 |
85,098 |
150,532 |
||||||||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
42,899 |
42,899 |
||||||||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
28,636 |
28,636 |
||||||||||||||||||||
Income from discontinued operations (net of tax) |
— |
— |
— |
— |
— |
(8,024) |
(8,024) |
||||||||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(2,609) |
(2,609) |
||||||||||||||||||||
Adjusted EBITDA |
$ |
157,580 |
$ |
121,630 |
$ |
90,393 |
$ |
369,603 |
$ |
23,278 |
$ |
7,977 |
$ |
400,858 |
Lithium |
PCS |
Total |
|||||||||
Three months ended June 30, 2016: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
42,129 |
$ |
14,751 |
$ |
56,880 |
|||||
Depreciation and amortization |
22,017 |
3,771 |
25,788 |
||||||||
Adjusted EBITDA |
$ |
64,146 |
$ |
18,522 |
$ |
82,668 |
|||||
Three months ended June 30, 2015: |
|||||||||||
Net (loss) income attributable to Albemarle Corporation |
$ |
(213) |
$ |
22,743 |
$ |
22,530 |
|||||
Depreciation and amortization |
20,035 |
3,597 |
23,632 |
||||||||
Non-recurring and other unusual items |
33,823 |
— |
33,823 |
||||||||
Adjusted EBITDA |
$ |
53,645 |
$ |
26,340 |
$ |
79,985 |
|||||
Six months ended June 30, 2016: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
86,475 |
$ |
33,732 |
$ |
120,207 |
|||||
Depreciation and amortization |
41,505 |
7,430 |
48,935 |
||||||||
Adjusted EBITDA |
$ |
127,980 |
$ |
41,162 |
$ |
169,142 |
|||||
Six months ended June 30, 2015: |
|||||||||||
Net income attributable to Albemarle Corporation |
$ |
3,715 |
$ |
46,006 |
$ |
49,721 |
|||||
Depreciation and amortization |
38,103 |
7,351 |
45,454 |
||||||||
Non-recurring and other unusual items |
62,405 |
— |
62,405 |
||||||||
Adjusted EBITDA |
$ |
104,223 |
$ |
53,357 |
$ |
157,580 |
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 June 30, 2016: |
||||||||||
As reported |
$ |
105,396 |
$ |
23,656 |
22.4 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB items from continuing operations |
17,791 |
(3,764) |
||||||||
As adjusted |
$ |
123,187 |
$ |
19,892 |
16.2 |
% |
||||
Three months ended June 30, 2015: |
||||||||||
As reported |
$ |
58,951 |
$ |
14,851 |
25.2 |
% |
||||
Non-recurring, other unusual and non-operating pension and OPEB items from continuing operations |
45,511 |
15,338 |
||||||||
As adjusted |
$ |
104,462 |
$ |
30,189 |
28.9 |
% |
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To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/albemarle-exceeds-second-quarter-2016-expectations-and-raises-guidance-300308801.html
SOURCE
Matt Juneau, 225.388.7940
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