News
Albemarle reports strong 2016 earnings finish and record cash flow from operations
February 27, 2017

Fourth quarter 2016 highlights:
- Fourth quarter earnings were
$602.1 million , or$5.30 per diluted share, including$546.3 million in after-tax gains related to the sale of the Chemetall Surface Treatment business - Fourth quarter adjusted EBITDA was
$187.4 million , an increase of 12% over the prior year, excluding the impact of divestitures - Full year cash from operations was a record
$733.4 million , an increase of 103% over the prior year - Completed sale of Chemetall Surface Treatment business on
December 14 and completed the acquisition of the lithium hydroxide and lithium carbonate conversion assets ofJiangxi Jiangli New Materials Science and Technology Co. Ltd. onDecember 31 - Net debt to adjusted EBITDA ratio at
December 31, 2016 was 0.1x, a significant step in our deleveraging efforts
Three Months Ended |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
In thousands, except per share amounts |
2016 |
2015 |
2016 |
2015 |
|||||||
Net sales |
$ |
696,655 |
$ |
722,610 |
$ |
2,677,203 |
$ |
2,826,429 |
|||
Net income from continuing operations |
$ |
50,304 |
$ |
169,275 |
$ |
478,638 |
$ |
327,588 |
|||
Net income attributable to Albemarle Corporation |
$ |
602,090 |
$ |
174,252 |
$ |
643,675 |
$ |
334,906 |
|||
Adjusted EBITDA |
$ |
187,384 |
$ |
174,481 |
$ |
758,217 |
$ |
756,000 |
|||
Diluted earnings per share from continuing operations |
$ |
0.37 |
$ |
1.43 |
$ |
3.90 |
$ |
2.71 |
|||
Diluted earnings per share attributable to Albemarle |
$ |
5.30 |
$ |
1.55 |
$ |
5.68 |
$ |
3.00 |
|||
Non-operating pension and OPEB items(a) |
0.16 |
(0.20) |
0.16 |
(0.22) |
|||||||
Non-recurring and other unusual items(b) |
0.25 |
(0.27) |
(0.49) |
1.03 |
|||||||
Discontinued operations(c) |
(4.93) |
(0.12) |
(1.78) |
(0.29) |
|||||||
Adjusted diluted earnings per share from continuing |
$ |
0.78 |
$ |
0.96 |
$ |
3.57 |
$ |
3.52 |
|||
See accompanying notes (a) through (d) to the condensed consolidated financial information and non-GAAP reconciliations. |
"Our three reportable segments again delivered strong results in the fourth quarter capping a year in which our three GBU's delivered adjusted EBITDA growth of
Outlook
Our 2016 performance and strategic actions have positioned Albemarle for another strong year of growth in 2017. We expect net sales to range between
Results
Net income from continuing operations for the fourth quarter 2016 was
Net income from continuing operations for the full year 2016 was
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 effective income tax rates for the fourth quarter of 2016 and 2015 of 49.5% and (23.5)%, 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 28.3% and 11.6% for the fourth quarter of 2016 and 2015, respectively, and continue to be influenced by the level and geographic mix of income. The effective tax rate in 2015 was driven down by a variety of factors including mix of income and planning related to the Rockwood acquisition. Our effective income tax rates for the year ended December 31, 2016 and 2015 were 18.7% and 3.6%, respectively, and excluding non-recurring, other unusual and non-operating pension and OPEB items, 20.8% and 23.1%, respectively.
Cash Flow
Our cash flow from operations was approximately
Earnings Call
The Company's performance for the fourth quarter ended December 31, 2016 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 and 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. 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; 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 |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Net sales |
$ |
696,655 |
$ |
722,610 |
$ |
2,677,203 |
$ |
2,826,429 |
|||
Cost of goods sold(a)(b) |
455,689 |
484,837 |
1,706,627 |
1,966,196 |
|||||||
Gross profit |
240,966 |
237,773 |
970,576 |
860,233 |
|||||||
Selling, general and administrative expenses(a)(b) |
125,476 |
47,768 |
380,464 |
300,440 |
|||||||
Research and development expenses(b) |
19,091 |
21,863 |
80,475 |
89,187 |
|||||||
Restructuring and other, net(b) |
— |
— |
— |
(6,804) |
|||||||
Gain on sales of businesses, net(b) |
— |
— |
(122,298) |
— |
|||||||
Acquisition and integration related costs(b) |
13,047 |
15,128 |
57,384 |
132,299 |
|||||||
Operating profit |
83,352 |
153,014 |
574,551 |
345,111 |
|||||||
Interest and financing expenses(b) |
(18,321) |
(19,457) |
(65,181) |
(81,650) |
|||||||
Other income (expenses), net(b) |
5,154 |
(2,951) |
5,894 |
47,283 |
|||||||
Income from continuing operations before income taxes |
70,185 |
130,606 |
515,264 |
310,744 |
|||||||
Income tax expense (benefit)(b) |
34,728 |
(30,646) |
96,263 |
11,134 |
|||||||
Income from continuing operations before equity in net |
35,457 |
161,252 |
419,001 |
299,610 |
|||||||
Equity in net income of unconsolidated investments (net of |
14,847 |
8,023 |
59,637 |
27,978 |
|||||||
Net income from continuing operations |
50,304 |
169,275 |
478,638 |
327,588 |
|||||||
Income from discontinued operations (net of tax)(c) |
559,974 |
13,402 |
202,131 |
32,476 |
|||||||
Net income |
610,278 |
182,677 |
680,769 |
360,064 |
|||||||
Net income attributable to noncontrolling interests |
(8,188) |
(8,425) |
(37,094) |
(25,158) |
|||||||
Net income attributable to Albemarle Corporation |
$ |
602,090 |
$ |
174,252 |
$ |
643,675 |
$ |
334,906 |
|||
Basic earnings per share |
|||||||||||
Continuing operations |
$ |
0.37 |
$ |
1.43 |
$ |
3.93 |
$ |
2.72 |
|||
Discontinued operations |
4.98 |
0.12 |
1.80 |
0.29 |
|||||||
$ |
5.35 |
$ |
1.55 |
$ |
5.73 |
$ |
3.01 |
||||
Diluted earnings per share |
|||||||||||
Continuing operations |
$ |
0.37 |
$ |
1.43 |
$ |
3.90 |
$ |
2.71 |
|||
Discontinued operations |
4.93 |
0.12 |
1.78 |
0.29 |
|||||||
$ |
5.30 |
$ |
1.55 |
$ |
5.68 |
$ |
3.00 |
||||
Weighted-average common shares outstanding – basic |
112,487 |
112,207 |
112,379 |
111,182 |
|||||||
Weighted-average common shares outstanding – diluted |
113,563 |
112,608 |
113,239 |
111,556 |
|||||||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Condensed Consolidated Balance Sheets (In Thousands) (Unaudited) |
|||||
December 31, |
December 31, |
||||
2016 |
2015 |
||||
ASSETS |
|||||
Cash and cash equivalents |
$ |
2,269,756 |
$ |
213,734 |
|
Other current assets |
1,036,862 |
975,336 |
|||
Assets held for sale |
— |
641,932 |
|||
Total current assets |
3,306,618 |
1,831,002 |
|||
Property, plant and equipment |
3,910,522 |
3,700,472 |
|||
Less accumulated depreciation and amortization |
1,550,382 |
1,379,377 |
|||
Net property, plant and equipment |
2,360,140 |
2,321,095 |
|||
Noncurrent assets held for sale |
— |
2,971,455 |
|||
Other assets and intangibles |
2,494,449 |
2,474,402 |
|||
Total assets |
$ |
8,161,207 |
$ |
9,597,954 |
|
LIABILITIES AND EQUITY |
|||||
Current portion of long-term debt |
$ |
247,544 |
$ |
674,994 |
|
Other current liabilities |
892,559 |
612,093 |
|||
Liabilities held for sale |
— |
329,598 |
|||
Total current liabilities |
1,140,103 |
1,616,685 |
|||
Long-term debt |
2,121,718 |
3,142,163 |
|||
Noncurrent liabilities held for sale |
— |
464,207 |
|||
Other noncurrent liabilities |
544,043 |
588,734 |
|||
Deferred income taxes |
412,739 |
384,852 |
|||
Albemarle Corporation shareholders' equity |
3,795,062 |
3,254,392 |
|||
Noncontrolling interests |
147,542 |
146,921 |
|||
Total liabilities and equity |
$ |
8,161,207 |
$ |
9,597,954 |
|
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Selected Consolidated Cash Flow Data (In Thousands) (Unaudited) |
|||||
Year Ended |
|||||
December 31, |
|||||
2016 |
2015 |
||||
Cash and cash equivalents at beginning of year |
$ |
213,734 |
$ |
2,489,768 |
|
Cash and cash equivalents at end of period |
$ |
2,269,756 |
$ |
213,734 |
|
Sources of cash and cash equivalents: |
|||||
Net income |
$ |
680,769 |
$ |
360,064 |
|
Cash proceeds from divestitures, net |
3,325,571 |
8,883 |
|||
Proceeds from borrowings of long-term debt |
— |
2,250,000 |
|||
Other borrowings, net |
— |
54,625 |
|||
Dividends received from unconsolidated investments and nonmarketable |
43,759 |
59,912 |
|||
Return of capital from unconsolidated investment |
— |
98,000 |
|||
Decrease in restricted cash |
— |
57,550 |
|||
Working capital changes(e) |
239,195 |
— |
|||
Uses of cash and cash equivalents: |
|||||
Working capital changes |
— |
(41,534) |
|||
Capital expenditures |
(196,654) |
(227,649) |
|||
Acquisition of Rockwood, net of cash acquired |
— |
(2,051,645) |
|||
Other acquisitions, net of cash acquired |
(126,747) |
(48,845) |
|||
Cash payments related to acquisitions and other |
(81,987) |
— |
|||
Repayments of long-term debt |
(1,252,302) |
(2,626,241) |
|||
Repayments of other borrowings, net |
(163,721) |
— |
|||
Pension and postretirement contributions |
(20,068) |
(21,613) |
|||
Dividends paid to shareholders |
(135,353) |
(119,302) |
|||
Dividends paid to noncontrolling interests |
(35,855) |
(23,286) |
|||
Non-cash and other items: |
|||||
Depreciation and amortization |
226,169 |
260,076 |
|||
Gain associated with restructuring and other |
— |
(6,804) |
|||
Gain on sales of businesses, net |
(510,278) |
— |
|||
Pension and postretirement expense (benefit) |
41,546 |
(38,817) |
|||
Deferred income taxes |
21,121 |
(136,298) |
|||
Equity in net income of unconsolidated investments (net of tax) |
(61,534) |
(30,999) |
|||
See accompanying notes to the condensed consolidated financial information. |
Albemarle Corporation and Subsidiaries Consolidated Summary of Segment Results (In Thousands) (Unaudited) |
|||||||||||
Three Months Ended |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Net sales: |
|||||||||||
Lithium and Advanced Materials |
$ |
278,266 |
$ |
213,993 |
$ |
968,216 |
$ |
834,590 |
|||
Bromine Specialties |
194,513 |
171,462 |
792,425 |
775,729 |
|||||||
Refining Solutions |
193,093 |
200,420 |
732,137 |
729,261 |
|||||||
All Other |
30,001 |
133,437 |
180,988 |
471,434 |
|||||||
Corporate |
782 |
3,298 |
3,437 |
15,415 |
|||||||
Total net sales |
$ |
696,655 |
$ |
722,610 |
$ |
2,677,203 |
$ |
2,826,429 |
|||
Adjusted EBITDA: |
|||||||||||
Lithium and Advanced Materials |
$ |
102,499 |
$ |
77,879 |
$ |
363,360 |
$ |
312,867 |
|||
Bromine Specialties |
46,949 |
42,222 |
226,926 |
222,653 |
|||||||
Refining Solutions |
57,343 |
52,685 |
238,963 |
197,595 |
|||||||
All Other |
(38) |
24,453 |
14,772 |
53,993 |
|||||||
Corporate(a) |
(19,369) |
(22,758) |
(85,804) |
(31,108) |
|||||||
Total adjusted EBITDA |
$ |
187,384 |
$ |
174,481 |
$ |
758,217 |
$ |
756,000 |
|||
Lithium and Advanced Materials - details by product category: |
|||||||||||
Three Months Ended |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Net sales: |
|||||||||||
Lithium |
$ |
208,173 |
$ |
139,033 |
$ |
668,852 |
$ |
508,844 |
|||
PCS |
70,093 |
74,960 |
299,364 |
325,746 |
|||||||
Total Lithium and Advanced Materials |
$ |
278,266 |
$ |
213,993 |
$ |
968,216 |
$ |
834,590 |
|||
Adjusted EBITDA: |
|||||||||||
Lithium |
$ |
89,097 |
$ |
57,131 |
$ |
285,714 |
$ |
213,464 |
|||
PCS |
13,402 |
20,748 |
77,646 |
99,403 |
|||||||
Total Lithium and Advanced Materials |
$ |
102,499 |
$ |
77,879 |
$ |
363,360 |
$ |
312,867 |
|||
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 |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Cost of goods sold: |
|||||||||||
MTM actuarial loss (gain) |
$ |
0.3 |
$ |
(2.0) |
$ |
0.3 |
$ |
(2.0) |
|||
Interest cost and expected return on assets, net |
(0.2) |
(0.4) |
(0.6) |
(1.7) |
|||||||
Total |
$ |
0.1 |
$ |
(2.4) |
$ |
(0.3) |
$ |
(3.7) |
|||
Selling, general and administrative expenses: |
|||||||||||
MTM actuarial loss (gain) |
$ |
26.3 |
$ |
(28.1) |
$ |
26.3 |
$ |
(28.1) |
|||
Interest cost and expected return on assets, net |
(0.2) |
(0.9) |
(0.4) |
(3.5) |
|||||||
Total |
$ |
26.1 |
$ |
(29.0) |
$ |
25.9 |
$ |
(31.6) |
The MTM actuarial loss (gain) was
(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 |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Utilization of inventory markup(1) |
$ |
— |
$ |
0.02 |
$ |
— |
$ |
0.60 |
|||
Write-off of research and development fixed assets(2) |
— |
— |
0.01 |
— |
|||||||
Restructuring and other, net(3) |
— |
(0.01) |
— |
(0.05) |
|||||||
Gain on sales of businesses, net(4) |
— |
— |
(1.02) |
— |
|||||||
Acquisition and integration related costs(5) |
0.05 |
0.06 |
0.31 |
0.76 |
|||||||
Loss on extinguishment of debt(6) |
0.01 |
0.03 |
0.01 |
0.03 |
|||||||
Interest and financing expenses related to Rockwood |
— |
— |
— |
0.01 |
|||||||
Other(8) |
0.03 |
— |
0.02 |
0.03 |
|||||||
Impairment of unconsolidated investment(9) |
— |
0.02 |
— |
0.02 |
|||||||
Discrete tax items(10) |
0.16 |
(0.39) |
0.18 |
(0.37) |
|||||||
Total non-recurring and other unusual items |
$ |
0.25 |
$ |
(0.27) |
$ |
(0.49) |
$ |
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 Research and development expenses for the year ended
(3) Included in Restructuring and other, net, for the year ended
(4) Included in Gain on sales of businesses, net, for the year ended
(5) Acquisition and integration related costs consisted of the following:
Three months ended
$9.7 million of integration costs resulting from the acquisition of Rockwood and$3.3 million in connection with other significant projects. After income taxes, these charges totaled$5.9 million , or$0.05 per share.
Year ended
$52.1 million of integration costs resulting from the acquisition of Rockwood and$5.3 million in connection with other significant projects. After income taxes, these charges totaled$35.4 million , or$0.31 per share.
Three months ended
$12.7 million directly related to the acquisition of Rockwood and$2.4 million in connection with other significant projects. After income taxes, these charges totaled$5.5 million , or$0.06 per share.
Year ended
$123.9 million directly related to the acquisition of Rockwood and$8.4 million in connection with other significant projects. After income taxes, these charges totaled$84.6 million , or$0.76 per share.
(6) Included in Interest and financing expenses for the three months and year ended
(7) Included in Interest and financing expenses for the year ended
(8) Other adjustments included the following:
Three months ended
- A net loss of
$0.9 million on the sales of properties included in Selling, general and administrative expenses, as well as$2.4 million of environmental charges related to a site formerly owned by Albemarle, a$1.1 million gain related to a previously disposed of site inChina and a loss of$1.0 million on the sales of properties included in Other income (expenses), net. After income taxes, these net charges totaled$2.4 million , or$0.03 per share.
Year ended
- A net loss of
$0.9 million on the sale of properties included in Selling, general and administrative expenses, as well as$2.4 million of environmental charges related to a site formerly owned by Albemarle and a$1.1 million gain related to a previously disposed of site inChina included in Other income (expenses), net. After income taxes, these net charges totaled$2.0 million , or$0.02 per share.
Year ended
$4.4 million ($2.8 million after income taxes, or$0.03 per share) for amortization of bridge facility fees and other financing fees related to the acquisition of Rockwood.
(9) Included in Equity in net income of unconsolidated investments (net of tax) for the three months and year ended
(10) Included in Income tax expense (benefit) for the three months and year 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 estimated purchase price adjustments, and recorded an after-tax gain of $135.0 million in 2016 related to the sale of this business. In the fourth quarter of 2016, we reversed 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 net discrete non-cash charge of $29.8 million related to a change in the Company's assertion over reinvestment of foreign undistributed earnings, both of which were recorded in previous quarters in 2016.
(d) Totals may not add due to rounding.
(e) The change in working capital increased
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. 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 attributable to
Three Months Ended |
Year Ended |
||||||||||
December 31, |
December 31, |
||||||||||
2016 |
2015 |
2016 |
2015 |
||||||||
Net income attributable to Albemarle Corporation |
$ |
602,090 |
$ |
174,252 |
$ |
643,675 |
$ |
334,906 |
|||
Add back: |
|||||||||||
Income from discontinued operations (net of tax) |
(559,974) |
(13,402) |
(202,131) |
(32,476) |
|||||||
Earnings from continuing operations |
42,116 |
160,850 |
441,544 |
302,430 |
|||||||
Add back: |
|||||||||||
Non-operating pension and OPEB items from continuing operations |
17,868 |
(22,160) |
17,608 |
(24,588) |
|||||||
Non-recurring and other unusual items from continuing operations |
28,844 |
(30,634) |
(55,374) |
114,336 |
|||||||
Adjusted net income from continuing operations |
88,828 |
108,056 |
403,778 |
392,178 |
|||||||
Income from discontinued operations (net of tax) |
559,974 |
13,402 |
202,131 |
32,476 |
|||||||
Add back: |
|||||||||||
Non-operating pension and OPEB items from discontinued |
3,425 |
(6,553) |
5,798 |
(7,738) |
|||||||
Non-recurring and other unusual items from discontinued operations |
(550,868) |
1,254 |
(128,340) |
22,471 |
|||||||
Adjusted net income attributable to Albemarle Corporation |
$ |
101,359 |
$ |
116,159 |
$ |
483,367 |
$ |
439,387 |
|||
Adjusted diluted earnings per share attributable to Albemarle |
$ |
0.89 |
$ |
1.03 |
$ |
4.27 |
$ |
3.94 |
|||
Weighted-average common shares outstanding – diluted |
113,563 |
112,608 |
113,239 |
111,556 |
|||||||
Net income attributable to Albemarle Corporation |
$ |
602,090 |
$ |
174,252 |
$ |
643,675 |
$ |
334,906 |
|||
Add back: |
|||||||||||
Income from discontinued operations (net of tax) |
(559,974) |
(13,402) |
(202,131) |
(32,476) |
|||||||
Interest and financing expenses |
18,321 |
19,457 |
65,181 |
81,650 |
|||||||
Income tax expense (benefit) |
34,728 |
(30,646) |
96,263 |
11,134 |
|||||||
Depreciation and amortization |
49,687 |
38,368 |
190,975 |
181,173 |
|||||||
EBITDA |
144,852 |
188,029 |
793,963 |
576,387 |
|||||||
Non-operating pension and OPEB items |
26,368 |
(31,385) |
25,589 |
(35,300) |
|||||||
Non-recurring and other unusual items (excluding items associated |
16,164 |
17,837 |
(61,335) |
214,913 |
|||||||
Adjusted EBITDA |
$ |
187,384 |
$ |
174,481 |
$ |
758,217 |
$ |
756,000 |
|||
Net sales |
$ |
696,655 |
$ |
722,610 |
$ |
2,677,203 |
$ |
2,826,429 |
|||
EBITDA margin |
20.8 % |
26.0 % |
29.7 % |
20.4 % |
|||||||
Adjusted EBITDA margin |
26.9 % |
24.1 % |
28.3 % |
26.7 % |
|||||||
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 December 31, 2016: |
|||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
75,021 |
$ |
37,143 |
$ |
48,107 |
$ |
160,271 |
$ |
(1,711) |
$ |
443,530 |
$ |
602,090 |
86.5 |
% |
|||||||
Depreciation and amortization |
27,478 |
9,806 |
9,236 |
46,520 |
1,673 |
1,494 |
49,687 |
7.1 |
% |
||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
— |
16,164 |
16,164 |
2.3 |
% |
||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
18,321 |
18,321 |
2.6 |
% |
||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
34,728 |
34,728 |
5.0 |
% |
||||||||||||||
Income from discontinued operations (net |
— |
— |
— |
— |
— |
(559,974) |
(559,974) |
(80.4) |
% |
||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
26,368 |
26,368 |
3.8 |
% |
||||||||||||||
Adjusted EBITDA |
$ |
102,499 |
$ |
46,949 |
$ |
57,343 |
$ |
206,791 |
$ |
(38) |
$ |
(19,369) |
$ |
187,384 |
26.9 |
% |
|||||||
Three months ended December 31, 2015: |
|||||||||||||||||||||||
Net income attributable to Albemarle |
$ |
60,602 |
$ |
32,121 |
$ |
42,072 |
$ |
134,795 |
$ |
23,137 |
$ |
16,320 |
$ |
174,252 |
24.1 |
% |
|||||||
Depreciation and amortization |
16,539 |
10,101 |
8,642 |
35,282 |
1,316 |
1,770 |
38,368 |
5.3 |
% |
||||||||||||||
Non-recurring and other unusual items |
738 |
— |
1,971 |
2,709 |
— |
15,128 |
17,837 |
2.5 |
% |
||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
19,457 |
19,457 |
2.7 |
% |
||||||||||||||
Income tax benefit |
— |
— |
— |
— |
— |
(30,646) |
(30,646) |
(4.2) |
% |
||||||||||||||
Income from discontinued operations (net |
— |
— |
— |
— |
— |
(13,402) |
(13,402) |
(1.9) |
% |
||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(31,385) |
(31,385) |
(4.3) |
% |
||||||||||||||
Adjusted EBITDA |
$ |
77,879 |
$ |
42,222 |
$ |
52,685 |
$ |
172,786 |
$ |
24,453 |
$ |
(22,758) |
$ |
174,481 |
24.1 |
% |
|||||||
Year ended December 31, 2016: |
|||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
261,394 |
$ |
187,364 |
$ |
202,874 |
$ |
651,632 |
$ |
131,301 |
$ |
(139,258) |
$ |
643,675 |
24.0 |
% |
|||||||
Depreciation and amortization |
101,966 |
39,562 |
36,089 |
177,617 |
7,302 |
6,056 |
190,975 |
7.1 |
% |
||||||||||||||
Non-recurring and other unusual items |
— |
— |
— |
— |
(123,831) |
62,496 |
(61,335) |
(2.3) |
% |
||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
65,181 |
65,181 |
2.4 |
% |
||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
96,263 |
96,263 |
3.6 |
% |
||||||||||||||
Income from discontinued operations (net |
— |
— |
— |
— |
— |
(202,131) |
(202,131) |
(7.6) |
% |
||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
25,589 |
25,589 |
1.0 |
% |
||||||||||||||
Adjusted EBITDA |
$ |
363,360 |
$ |
226,926 |
$ |
238,963 |
$ |
829,249 |
$ |
14,772 |
$ |
(85,804) |
$ |
758,217 |
28.3 |
% |
|||||||
Year ended December 31, 2015: |
|||||||||||||||||||||||
Net income (loss) attributable to Albemarle |
$ |
148,821 |
$ |
186,474 |
$ |
161,585 |
$ |
496,880 |
$ |
32,781 |
$ |
(194,755) |
$ |
334,906 |
11.8 |
% |
|||||||
Depreciation and amortization |
84,069 |
36,179 |
34,039 |
154,287 |
18,183 |
8,703 |
181,173 |
6.4 |
% |
||||||||||||||
Non-recurring and other unusual items |
79,977 |
— |
1,971 |
81,948 |
3,029 |
129,936 |
214,913 |
7.6 |
% |
||||||||||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
81,650 |
81,650 |
2.9 |
% |
||||||||||||||
Income tax expense |
— |
— |
— |
— |
— |
11,134 |
11,134 |
0.4 |
% |
||||||||||||||
Income from discontinued operations (net |
— |
— |
— |
— |
— |
(32,476) |
(32,476) |
(1.1) |
% |
||||||||||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(35,300) |
(35,300) |
(1.2) |
% |
||||||||||||||
Adjusted EBITDA |
$ |
312,867 |
$ |
222,653 |
$ |
197,595 |
$ |
733,115 |
$ |
53,993 |
$ |
(31,108) |
$ |
756,000 |
26.7 |
% |
Lithium |
PCS |
Total |
||||||
Three months ended December 31, 2016: |
||||||||
Net income attributable to Albemarle Corporation |
$ |
65,529 |
$ |
9,492 |
$ |
75,021 |
||
Depreciation and amortization |
23,568 |
3,910 |
27,478 |
|||||
Adjusted EBITDA |
$ |
89,097 |
$ |
13,402 |
$ |
102,499 |
||
Three months ended December 31, 2015: |
||||||||
Net income attributable to Albemarle Corporation |
$ |
43,251 |
$ |
17,351 |
$ |
60,602 |
||
Depreciation and amortization |
13,142 |
3,397 |
16,539 |
|||||
Non-recurring and other unusual items |
738 |
— |
738 |
|||||
Adjusted EBITDA |
$ |
57,131 |
$ |
20,748 |
$ |
77,879 |
||
Year ended December 31, 2016: |
||||||||
Net income attributable to Albemarle Corporation |
$ |
198,852 |
$ |
62,542 |
$ |
261,394 |
||
Depreciation and amortization |
86,862 |
15,104 |
101,966 |
|||||
Adjusted EBITDA |
$ |
285,714 |
$ |
77,646 |
$ |
363,360 |
||
Year ended December 31, 2015: |
||||||||
Net income attributable to Albemarle Corporation |
$ |
63,473 |
$ |
85,348 |
$ |
148,821 |
||
Depreciation and amortization |
70,014 |
14,055 |
84,069 |
|||||
Non-recurring and other unusual items |
79,977 |
— |
79,977 |
|||||
Adjusted EBITDA |
$ |
213,464 |
$ |
99,403 |
$ |
312,867 |
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 December 31, 2016: |
||||||||
As reported |
$ |
70,185 |
$ |
34,728 |
49.5 |
% |
||
Non-recurring, other unusual and non-operating pension and OPEB |
44,453 |
(2,259) |
||||||
As adjusted |
$ |
114,638 |
$ |
32,469 |
28.3 |
% |
||
Three months ended December 31, 2015: |
||||||||
As reported |
$ |
130,606 |
$ |
(30,646) |
(23.5) |
% |
||
Non-recurring, other unusual and non-operating pension and OPEB |
(10,338) |
44,600 |
||||||
As adjusted |
$ |
120,268 |
$ |
13,954 |
11.6 |
% |
||
Year ended December 31, 2016: |
||||||||
As reported |
$ |
515,264 |
$ |
96,263 |
18.7 |
% |
||
Non-recurring, other unusual and non-operating pension and OPEB |
(33,825) |
3,941 |
||||||
As adjusted |
$ |
481,439 |
$ |
100,204 |
20.8 |
% |
||
Year ended December 31, 2015: |
||||||||
As reported |
$ |
310,744 |
$ |
11,134 |
3.6 |
% |
||
Non-recurring, other unusual and non-operating pension and OPEB |
157,501 |
96,830 |
||||||
As adjusted |
$ |
468,245 |
$ |
107,964 |
23.1 |
% |
To view the original version on PR Newswire, visit:https://www.prnewswire.com/news-releases/albemarle-reports-strong-2016-earnings-finish-and-record-cash-flow-from-operations-300414325.html
SOURCE
Matt Juneau, 225.388.7940
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