News
Albemarle Reports Strong Second-Quarter Sales Growth, Raising Guidance
August 3, 2022
Second Quarter 2022 and Recent Highlights
(Unless otherwise stated, all percentage changes represent year-over-year comparisons)
- Net sales of
$1.48 billion , an increase of 91% - Net income of
$406.8 million , or$3.46 per diluted share; Adjusted diluted EPS of$3.45 , an increase of 288% - Adjusted EBITDA of
$610 million , an increase of 214% - Kemerton I lithium conversion plant in
Western Australia achieved first product inJuly 2022 - Announced plans to build integrated lithium operations in
the United States , including theKings Mountain, North Carolina , spodumene mine and a lithium conversion plant in the southeast - Guidance for 2022 further revised upward on successful Lithium contract renegotiations and increased prices in the Lithium and Bromine businesses
- Expect significant growth in full-year 2022 results including net sales of
$7.1 -$7.5 billion (>2x 2021) and adjusted EBITDA of$3.2 -$3.5 billion (>3x 2021) - With revised guidance, expect to be free cash flow positive in 2022
"We delivered another strong quarter throughout the current turbulent market environment, thanks to strong demand and pricing trends, particularly for Lithium and Bromine. Over the past year, we have shifted our Lithium contracting strategy to realize greater benefits from these strong market dynamics," said Albemarle CEO
Outlook
Albemarle's outlook for 2022 has continued to improve based on expectations for ongoing demand strength and tightness in the markets it serves. Net sales guidance was revised upward primarily due to continued strength in pricing in its Lithium and Bromine businesses. Adjusted EBITDA guidance is also higher based on pricing expectations slightly offset by inflationary cost pressures, particularly for natural gas in
FY 2022 Guidance as of |
FY 2022 Guidance Further Updated |
||
Net sales |
|||
Adjusted EBITDA |
|||
Adjusted EBITDA Margin |
38% - 40% |
45% - 47% |
|
Adjusted Diluted EPS |
|||
Capital Expenditures |
Second Quarter Results
In millions, except per share amounts |
Q2 2022 |
Q2 2021 |
$ Change |
% Change |
|||
Net sales |
$ 1,479.6 |
$ 773.9 |
$ 705.7 |
91.2 % |
|||
Net income attributable to |
$ 406.8 |
$ 424.6 |
$ (17.8) |
(4.2) % |
|||
Adjusted EBITDA(a) |
$ 610.2 |
$ 194.6 |
$ 415.6 |
213.5 % |
|||
Diluted earnings per share |
$ 3.46 |
$ 3.62 |
$ (0.16) |
(4.4) % |
|||
Non-operating pension and OPEB items(a) |
(0.03) |
(0.04) |
|||||
Non-recurring and other unusual items(a) |
0.02 |
(2.69) |
|||||
Adjusted diluted earnings per share(a)(b) |
$ 3.45 |
$ 0.89 |
$ 2.56 |
287.6 % |
|||
(a) See Non-GAAP Reconciliations for further details. |
|||||||
(b) Totals may not add due to rounding. |
Net sales of
Net income attributable to Albemarle of
Adjusted EBITDA of
The effective income tax rate for the second quarter of 2022 was 22.2% compared to 20.0% in the same period of 2021. The difference is largely due to global intangible low-taxed income and the geographic mix of earnings. On an adjusted basis, the effective income tax rates were 26.3% and 17.5% for the second quarter of 2022 and 2021, respectively.
Business Segment Results
Lithium Results
In millions |
Q2 2022 |
Q2 2021 |
$ Change |
% Change |
|||
$ 891.5 |
$ 320.3 |
$ 571.2 |
178.3 % |
||||
Adjusted EBITDA |
$ 495.2 |
$ 109.4 |
$ 385.8 |
352.5 % |
Lithium net sales of
Lithium Outlook
Adjusted EBITDA for the full year 2022 is expected to grow approximately 500-550% year over year, up from the previous outlook of +300%. Average realized pricing is now expected to be up 225-250% year-over-year resulting from the renegotiated contracts and increased market pricing. Full-year 2022 volume is expected to be up 20-30% year over year primarily due to new capacity coming online as well as higher tolling volumes. The revised outlook assumes the company's expected third quarter realized selling price remains constant for the remainder of the year. There is potential upside if market pricing remains near current levels, if contract renegotiations result in additional price improvements, or with additional tolled volumes. There is potential downside in the event of a material correction in lithium market pricing or potential volume shortfalls (e.g., delays in acquisitions or expansion projects).
Albemarle continues to progress the expansion of its global portfolio of conversion capacity and utilization of its world-class resource portfolio:
– La Negra III/IV conversion plant is in commercial qualification and running as expected
–
– Kemerton I conversion plant achieved first product in
– Kemerton II conversion plant remains on track for mechanical completion in the second half of 2022
– Production of spodumene concentrate from the first and second trains at Wodgina were achieved in May and July, respectively
China
– The acquisition of the Qinzhou lithium conversion plant in
– Construction is underway at the Meishan greenfield project
– Zhangjiagang greenfield project has been deferred as we continue to fine tune the carbonate engineering design
– New wells and expansion projects at Silver Peak continue to progress ahead of schedule
Bromine Results
In millions |
Q2 2022 |
Q2 2021 |
$ Change |
% Change |
|||
$ 377.8 |
$ 279.7 |
$ 98.0 |
35.0 % |
||||
Adjusted EBITDA |
$ 135.7 |
$ 92.6 |
$ 43.0 |
46.5 % |
Bromine net sales of
Bromine Outlook
Adjusted EBITDA for the full year 2022 is expected to grow approximately 25-30% from 2021 based on higher pricing resulting from strong demand in diverse end-markets including fire safety solutions and clear completion fluids for offshore new well drilling. Successful execution of growth projects in 2021 is expected to contribute to a 5-10% volume increase in full-year 2022. Bromine's ongoing cost savings initiatives and favorable pricing are expected to offset higher freight and raw material costs.
Catalysts Results
In millions |
Q2 2022 |
Q2 2021 |
$ Change |
% Change |
|||
$ 210.3 |
$ 148.3 |
$ 62.0 |
41.8 % |
||||
Adjusted EBITDA |
$ 9.8 |
$ 21.2 |
$ (11.4) |
(53.7) % |
Catalysts net sales of
Catalysts Outlook
Albemarle expects full-year 2022 adjusted EBITDA to be down 25-65% year-over-year, down from the previous outlook due to continued volatility of raw materials costs and natural gas pricing in
The strategic review of the Catalysts business is ongoing. The company expects to provide an update as soon as circumstances warrant.
All Other
In millions |
Q2 2022 |
Q2 2021 |
$ Change |
% Change |
|||
$ — |
$ 25.5 |
$ (25.5) |
(100.0) % |
||||
Adjusted EBITDA |
$ — |
$ 8.4 |
$ (8.4) |
(100.0) % |
Other operations represent the
Balance Sheet and Liquidity
As of
Cash Flow and Capital Deployment
Cash from operations of
Albemarle's primary capital allocation priorities are to invest in organic and inorganic opportunities to drive profitable growth, maintain its financial flexibility and Investment Grade credit rating, and fund its dividend.
Earnings Call
Date: |
|
Time: |
|
Dial-in ( |
844-200-6205 |
Dial-in (International): |
929-526-1599 |
Passcode: |
446425 |
The company's earnings presentation and supporting material are available on Albemarle's website at https://investors.albemarle.com.
About Albemarle
Albemarle regularly posts 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, information related to the timing of active and proposed projects, production capacity, committed volumes, pricing, financial flexibility, expected growth, anticipated return on opportunities, earnings and demand for Albemarle's products, productivity improvements, tax rates, stock repurchases, dividends, cash flow generation, costs and cost synergies, capital projects, future acquisition and divestiture transactions including statements with respect to timing, expected benefits from proposed transactions, market and economic trends, statements with respect to 2022 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 Albemarle's actual results to differ materially from the outlook expressed or implied in any forward-looking statement include, without limitation: changes in economic and business conditions; changes in financial and operating performance of its major customers and industries and markets served by it; the timing of orders received from customers; the gain or loss of significant customers; fluctuations in lithium market pricing, which could impact our revenues and profitability particularly due to our increased exposure to index-referenced and variable-priced contracts for battery grade lithium sales; changes with respect to contract renegotiations; potential production volume shortfalls; competition from other manufacturers; changes in the demand for its products or the end-user markets in which its products are sold; limitations or prohibitions on the manufacture and sale of its products; availability of raw materials; increases in the cost of raw materials and energy, and its ability to pass through such increases to its customers; technological change and development, changes in its markets in general; fluctuations in foreign currencies; changes in laws and government regulation impacting its operations or its products; the occurrence of regulatory actions, proceedings, claims or litigation (including with respect to the
Albemarle Corporation and Subsidiaries |
|||||||
Consolidated Statements of Income |
|||||||
(In Thousands Except Per Share Amounts) (Unaudited) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net sales |
$ 773,896 |
||||||
Cost of goods sold |
899,169 |
525,479 |
1,577,867 |
1,091,083 |
|||
Gross profit |
580,424 |
248,417 |
1,029,454 |
512,104 |
|||
Selling, general and administrative expenses |
128,942 |
121,516 |
241,510 |
214,703 |
|||
Research and development expenses |
17,386 |
13,976 |
33,469 |
28,612 |
|||
(Gain) loss on sale of business/interest in properties |
— |
(429,408) |
8,400 |
(429,408) |
|||
Operating profit |
434,096 |
542,333 |
746,075 |
698,197 |
|||
Interest and financing expenses |
(41,409) |
(7,152) |
(69,243) |
(51,034) |
|||
Other income, net |
8,767 |
14 |
24,263 |
11,326 |
|||
Income before income taxes and equity in net income of unconsolidated investments |
401,454 |
535,195 |
701,095 |
658,489 |
|||
Income tax expense |
89,018 |
106,985 |
169,548 |
129,092 |
|||
Income before equity in net income of unconsolidated investments |
312,436 |
428,210 |
531,547 |
529,397 |
|||
Equity in net income of unconsolidated investments (net of tax) |
128,156 |
17,998 |
190,592 |
34,509 |
|||
Net income |
440,592 |
446,208 |
722,139 |
563,906 |
|||
Net income attributable to noncontrolling interests |
(33,819) |
(21,608) |
(61,983) |
(43,629) |
|||
Net income attributable to |
$ 406,773 |
$ 424,600 |
$ 660,156 |
$ 520,277 |
|||
Basic earnings per share |
$ 3.47 |
$ 3.63 |
$ 5.64 |
$ 4.54 |
|||
Diluted earnings per share |
$ 3.46 |
$ 3.62 |
$ 5.61 |
$ 4.51 |
|||
Weighted-average common shares outstanding – basic |
117,116 |
116,809 |
117,091 |
114,700 |
|||
Weighted-average common shares outstanding – diluted |
117,724 |
117,436 |
117,689 |
115,383 |
Albemarle Corporation and Subsidiaries |
|||
Condensed Consolidated Balance Sheets |
|||
(In Thousands) (Unaudited) |
|||
2022 |
2021 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 930,596 |
$ 439,272 |
|
Trade accounts receivable |
962,215 |
556,922 |
|
Other accounts receivable |
124,409 |
66,184 |
|
Inventories |
1,216,213 |
812,920 |
|
Other current assets |
116,671 |
132,683 |
|
Total current assets |
3,350,104 |
2,007,981 |
|
Property, plant and equipment |
8,465,403 |
8,074,746 |
|
Less accumulated depreciation and amortization |
2,257,379 |
2,165,130 |
|
Net property, plant and equipment |
6,208,024 |
5,909,616 |
|
Investments |
903,861 |
897,708 |
|
Other assets |
230,346 |
252,239 |
|
1,542,767 |
1,597,627 |
||
Other intangibles, net of amortization |
285,303 |
308,947 |
|
Total assets |
$ 12,520,405 |
$ 10,974,118 |
|
LIABILITIES AND EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 1,091,583 |
$ 647,986 |
|
Accrued expenses |
330,941 |
763,293 |
|
Current portion of long-term debt |
251,304 |
389,920 |
|
Dividends payable |
46,097 |
45,469 |
|
Income taxes payable |
61,837 |
27,667 |
|
Total current liabilities |
1,781,762 |
1,874,335 |
|
Long-term debt |
3,205,730 |
2,004,319 |
|
Postretirement benefits |
43,079 |
43,693 |
|
Pension benefits |
205,890 |
229,187 |
|
Other noncurrent liabilities |
591,021 |
663,698 |
|
Deferred income taxes |
391,948 |
353,279 |
|
Commitments and contingencies |
|||
Equity: |
|||
Common stock |
1,171 |
1,170 |
|
Additional paid-in capital |
2,927,086 |
2,920,007 |
|
Accumulated other comprehensive loss |
(507,138) |
(392,450) |
|
Retained earnings |
3,664,172 |
3,096,539 |
|
6,085,291 |
5,625,266 |
||
Noncontrolling interests |
215,684 |
180,341 |
|
Total equity |
6,300,975 |
5,805,607 |
|
Total liabilities and equity |
$ 12,520,405 |
$ 10,974,118 |
Albemarle Corporation and Subsidiaries |
|||
Selected Consolidated Cash Flow Data |
|||
(In Thousands) (Unaudited) |
|||
Six Months Ended |
|||
2022 |
2021 |
||
Cash and cash equivalents at beginning of year |
$ 439,272 |
$ 746,724 |
|
Cash flows from operating activities: |
|||
Net income |
722,139 |
563,906 |
|
Adjustments to reconcile net income to cash flows from operating activities: |
|||
Depreciation and amortization |
137,567 |
123,683 |
|
Loss (gain) on sale of business/interest in properties |
8,400 |
(429,408) |
|
Stock-based compensation and other |
15,232 |
8,425 |
|
Equity in net income of unconsolidated investments (net of tax) |
(190,592) |
(34,509) |
|
Dividends received from unconsolidated investments and nonmarketable securities |
156,964 |
27,420 |
|
Pension and postretirement benefit |
(8,273) |
(8,465) |
|
Pension and postretirement contributions |
(7,685) |
(20,266) |
|
Unrealized gain on investments in marketable securities |
3,061 |
(2,384) |
|
Loss on early extinguishment of debt |
19,219 |
28,955 |
|
Deferred income taxes |
39,476 |
27,708 |
|
Working capital changes |
(888,036) |
7,942 |
|
Non-cash transfer of 40% value of construction in progress of Kemerton plant to MRL |
96,314 |
96,185 |
|
Other, net |
(43,475) |
(3,339) |
|
Net cash provided by operating activities |
60,311 |
385,853 |
|
Cash flows from investing activities: |
|||
Capital expenditures |
(502,607) |
(396,915) |
|
Cash proceeds from divestitures, net |
— |
290,467 |
|
Sales of marketable securities, net |
3,402 |
4,553 |
|
Investments in equity and other corporate investments |
(767) |
(286) |
|
Net cash used in investing activities |
(499,972) |
(102,181) |
|
Cash flows from financing activities: |
|||
Proceeds from issuance of common stock |
— |
1,453,888 |
|
Repayments of long-term debt and credit agreements |
(455,000) |
(1,173,823) |
|
Proceeds from borrowings of credit agreements |
1,964,216 |
— |
|
Other debt repayments, net |
(390,601) |
(325,316) |
|
Fees related to early extinguishment of debt |
(9,767) |
(24,877) |
|
Dividends paid to shareholders |
(91,894) |
(86,637) |
|
Dividends paid to noncontrolling interests |
(26,525) |
(43,698) |
|
Proceeds from exercise of stock options |
855 |
14,335 |
|
Withholding taxes paid on stock-based compensation award distributions |
(10,583) |
(7,047) |
|
Other |
(4,172) |
(1,359) |
|
Net cash provided by (used in) financing activities |
976,529 |
(194,534) |
|
Net effect of foreign exchange on cash and cash equivalents |
(45,544) |
(12,290) |
|
Increase in cash and cash equivalents |
491,324 |
76,848 |
|
Cash and cash equivalents at end of period |
$ 930,596 |
$ 823,572 |
Albemarle Corporation and Subsidiaries |
|||||||
Consolidated Summary of Segment Results |
|||||||
(In Thousands) (Unaudited) |
|||||||
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Net sales: |
|||||||
Lithium |
$ 891,516 |
$ 320,334 |
$ 599,310 |
||||
Bromine |
377,752 |
279,748 |
737,331 |
560,195 |
|||
Catalysts |
210,325 |
148,344 |
428,202 |
368,587 |
|||
All Other |
— |
25,470 |
— |
75,095 |
|||
Total net sales |
$ 773,896 |
||||||
Adjusted EBITDA: |
|||||||
Lithium |
$ 495,208 |
$ 109,441 |
$ 803,823 |
$ 215,877 |
|||
Bromine |
135,683 |
92,646 |
264,917 |
187,286 |
|||
Catalysts |
9,792 |
21,164 |
26,702 |
46,591 |
|||
All Other |
— |
8,379 |
— |
29,858 |
|||
Corporate |
(30,474) |
(37,002) |
(53,303) |
(54,930) |
|||
Total adjusted EBITDA |
$ 610,209 |
$ 194,628 |
$ 424,682 |
See accompanying non-GAAP reconciliations below.
Additional Information
It should be noted that adjusted net income attributable to
A description of other non-GAAP financial measures that Albemarle uses to evaluate its 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 on the following pages of this press release, which is also is available on Albemarle's website at https://investors.albemarle.com. 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 |
|||||||
(Unaudited) |
|||||||
See below for a reconciliation of adjusted net income attributable to Albemarle Corporation, EBITDA and adjusted EBITDA, the non-GAAP financial measures, to Net income attributable to Albemarle Corporation ("earnings"), the most directly comparable financial measure calculated and reported in accordance with GAAP. Adjusted net income attributable to Albemarle Corporation is defined as net income before the non-recurring, other unusual and non-operating pension and other post-employment benefit (OPEB) items as listed below. The non-recurring and unusual items may include acquisition and integration related costs, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, certain litigation and arbitration costs and charges, and other significant non-recurring items. EBITDA is defined as net income attributable to Albemarle Corporation before interest and financing expenses, income tax expense, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus the non-recurring, other unusual and non-operating pension and OPEB items as listed below. |
|||||||
Three Months Ended |
Six Months Ended |
||||||
In thousands, except percentages and per share amounts |
2022 |
2021 |
2022 |
2021 |
|||
Net income attributable to |
$ 406,773 |
$ 424,600 |
$ 660,156 |
$ 520,277 |
|||
Add back: |
|||||||
Non-operating pension and OPEB items (net of tax) |
(3,946) |
(4,273) |
(8,085) |
(8,540) |
|||
Non-recurring and other unusual items (net of tax) |
2,909 |
(315,996) |
33,812 |
(283,235) |
|||
Adjusted net income attributable to |
$ 405,736 |
$ 104,331 |
$ 685,883 |
$ 228,502 |
|||
Adjusted diluted earnings per share |
$ 3.45 |
$ 0.89 |
$ 5.83 |
$ 1.98 |
|||
Weighted-average common shares outstanding – diluted |
117,724 |
117,436 |
117,689 |
115,383 |
|||
Net income attributable to |
$ 406,773 |
$ 424,600 |
$ 660,156 |
$ 520,277 |
|||
Add back: |
|||||||
Interest and financing expenses |
41,409 |
7,152 |
69,243 |
51,034 |
|||
Income tax expense |
89,018 |
106,985 |
169,548 |
129,092 |
|||
Depreciation and amortization |
70,993 |
61,423 |
137,567 |
123,683 |
|||
EBITDA |
608,193 |
600,160 |
1,036,514 |
824,086 |
|||
Non-operating pension and OPEB items |
(5,038) |
(5,471) |
(10,318) |
(10,936) |
|||
Non-recurring and other unusual items (excluding items associated with interest expense) |
7,054 |
(400,061) |
15,943 |
(388,468) |
|||
Adjusted EBITDA |
$ 610,209 |
$ 194,628 |
$ 1,042,139 |
$ 424,682 |
|||
Net sales |
$ 1,479,593 |
$ 773,896 |
$ 2,607,321 |
$ 1,603,187 |
|||
EBITDA margin |
41.1 % |
77.6 % |
39.8 % |
51.4 % |
|||
Adjusted EBITDA margin |
41.2 % |
25.1 % |
40.0 % |
26.5 % |
See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income attributable to
Lithium |
Bromine |
Catalysts |
Reportable |
All Other |
Corporate |
Consolidated |
% of Net |
||||||||
Three months ended |
|||||||||||||||
Net income (loss) attributable to |
$ (3,383) |
$ — |
$ 406,773 |
27.5 % |
|||||||||||
Depreciation and amortization |
42,502 |
13,222 |
13,175 |
68,899 |
— |
2,094 |
70,993 |
4.8 % |
|||||||
Non-recurring and other unusual items |
607 |
— |
— |
607 |
— |
6,447 |
7,054 |
0.5 % |
|||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
41,409 |
41,409 |
2.8 % |
|||||||
Income tax expense |
— |
— |
— |
— |
— |
89,018 |
89,018 |
6.0 % |
|||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(5,038) |
(5,038) |
(0.3) % |
|||||||
Adjusted EBITDA |
$ 9,792 |
$ — |
$ (30,474) |
$ 610,209 |
41.2 % |
||||||||||
Three months ended |
|||||||||||||||
Net income (loss) attributable to |
$ 74,593 |
$ 80,148 |
$ 8,446 |
$ 7,972 |
$ 253,441 |
$ 424,600 |
54.9 % |
||||||||
Depreciation and amortization |
33,497 |
12,498 |
12,718 |
58,713 |
407 |
2,303 |
61,423 |
7.9 % |
|||||||
Non-recurring and other unusual items |
1,351 |
— |
— |
1,351 |
— |
(401,412) |
(400,061) |
(51.7) % |
|||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
7,152 |
7,152 |
0.9 % |
|||||||
Income tax expense |
— |
— |
— |
— |
— |
106,985 |
106,985 |
13.8 % |
|||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(5,471) |
(5,471) |
(0.7) % |
|||||||
Adjusted EBITDA |
$ 92,646 |
$ 21,164 |
$ 8,379 |
$ (37,002) |
$ 194,628 |
25.1 % |
|||||||||
Six months ended |
|||||||||||||||
Net income (loss) attributable to |
$ 606 |
$ — |
$ 660,156 |
25.3 % |
|||||||||||
Depreciation and amortization |
81,028 |
25,895 |
26,096 |
133,019 |
— |
4,548 |
137,567 |
5.3 % |
|||||||
Non-recurring and other unusual items |
9,007 |
— |
— |
9,007 |
— |
6,936 |
15,943 |
0.6 % |
|||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
69,243 |
69,243 |
2.7 % |
|||||||
Income tax expense |
— |
— |
— |
— |
— |
169,548 |
169,548 |
6.5 % |
|||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(10,318) |
(10,318) |
(0.4) % |
|||||||
Adjusted EBITDA |
$ 26,702 |
$ 1,095,442 |
$ — |
$ (53,303) |
$ 1,042,139 |
40.0 % |
|||||||||
Six months ended |
|||||||||||||||
Net income (loss) attributable to |
$ 21,362 |
$ 27,988 |
$ 163,701 |
$ 520,277 |
32.5 % |
||||||||||
Depreciation and amortization |
65,303 |
25,025 |
25,229 |
115,557 |
1,870 |
6,256 |
123,683 |
7.7 % |
|||||||
Non-recurring and other unusual items (excluding items associated |
5,609 |
— |
— |
5,609 |
— |
(394,077) |
(388,468) |
(24.2) % |
|||||||
Interest and financing expenses |
— |
— |
— |
— |
— |
51,034 |
51,034 |
3.2 % |
|||||||
Income tax expense |
— |
— |
— |
— |
— |
129,092 |
129,092 |
8.1 % |
|||||||
Non-operating pension and OPEB items |
— |
— |
— |
— |
— |
(10,936) |
(10,936) |
(0.7) % |
|||||||
Adjusted EBITDA |
$ 46,591 |
$ 29,858 |
$ (54,930) |
$ 424,682 |
26.5 % |
Non-operating pension and OPEB items, consisting of mark-to-market actuarial gains/losses, settlements/curtailments, interest cost and expected return on assets, are not allocated to Albemarle's operating segments and are included in the Corporate category. In addition, the company believes that these components of pension cost are mainly driven by market performance, and the company manages these separately from the operational performance of the company's businesses. In accordance with GAAP, these non-operating pension and OPEB items are included in Other income (expenses), net. Non-operating pension and OPEB items were as follows (in thousands):
Three Months Ended |
Six Months Ended |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Interest cost |
$ 5,894 |
$ 5,430 |
$ 11,826 |
$ 10,858 |
|||
Expected return on assets |
(10,932) |
(10,901) |
(22,144) |
(21,794) |
|||
Total |
$ (5,038) |
$ (5,471) |
$ (10,318) |
$ (10,936) |
In addition to the non-operating pension and OPEB items disclosed above, the company has identified certain other items and excluded them from Albemarle's 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 |
||||||
2022 |
2021 |
2022 |
2021 |
||||
Restructuring and other(1) |
$ — |
$ — |
$ — |
$ 0.01 |
|||
Acquisition and integration related costs(2) |
0.03 |
0.01 |
0.05 |
0.03 |
|||
— |
0.13 |
— |
0.13 |
||||
Loss (gain) on sale of business/interest in properties(4) |
— |
(2.82) |
0.07 |
(2.87) |
|||
Loss on early extinguishment of debt(5) |
0.13 |
0.01 |
0.13 |
0.21 |
|||
Other(6) |
0.01 |
0.04 |
— |
0.10 |
|||
Tax related items(7) |
(0.15) |
(0.06) |
0.04 |
(0.06) |
|||
Total non-recurring and other unusual items |
$ 0.02 |
$ (2.69) |
$ 0.29 |
$ (2.45) |
(1) |
During the three and six months ended |
(2) |
Costs related to the acquisition, integration and divestitures for various significant projects, recorded in Selling, general and administrative expenses for the three and six months ended |
(3) |
Included in Selling, general and administrative expenses for the three and six months ended |
(4) |
Included in (Gain) loss on sale of business/interest in properties for the six months ended |
(5) |
Included in Interest and financing expenses for the three and six months ended |
Included in Interest and financing expenses for the three and six months ended |
|
(6) |
Other adjustments for the three months ended
After income taxes, these charges totaled Other adjustments for the six months ended
Other adjustments for the three months ended
After income taxes, these charges totaled
|
(7) |
Included in Income tax expense for the three and six months ended |
Included in Income tax expense for the three and six months ended |
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 reported in accordance with GAAP (in thousands, except percentages).
Income before |
Income tax |
Effective |
|||
Three months ended |
|||||
As reported |
$ 401,454 |
$ 89,018 |
22.2 % |
||
Non-recurring, other unusual and non-operating pension and OPEB items |
21,235 |
22,272 |
|||
As adjusted |
$ 422,689 |
$ 111,290 |
26.3 % |
||
Three months ended |
|||||
As reported |
$ 535,195 |
$ 106,985 |
20.0 % |
||
Non-recurring, other unusual and non-operating pension and OPEB items |
(404,383) |
(84,114) |
|||
As adjusted |
$ 130,812 |
$ 22,871 |
17.5 % |
||
Six months ended |
|||||
As reported |
$ 701,095 |
$ 169,548 |
24.2 % |
||
Non-recurring, other unusual and non-operating pension and OPEB items |
24,844 |
(883) |
|||
As adjusted |
$ 725,939 |
$ 168,665 |
23.2 % |
||
Six months ended |
|||||
As reported |
$ 658,489 |
$ 129,092 |
19.6 % |
||
Non-recurring, other unusual and non-operating pension and OPEB items |
(370,457) |
(78,682) |
|||
As adjusted |
$ 288,032 |
$ 50,410 |
17.5 % |
View original content to download multimedia:https://www.prnewswire.com/news-releases/albemarle-reports-strong-second-quarter-sales-growth-raising-guidance-301599429.html
SOURCE
Brook Wootton, 980.299.5700
Back to News