Virginia | 001-12658 | 54-1692118 | ||
(State or other jurisdiction of incorporation) | (Commission file number) | (IRS employer identification no.) | ||
4350 Congress Street, Suite 700, Charlotte, North Carolina | 28209 | |||
(Address of principal executive offices) | (Zip code) |
Emerging growth company | ¨ |
By: | /s/ Karen G. Narwold |
Karen G. Narwold | |
Executive Vice President and Chief Administrative Officer |
Exhibit | ||
Number | Exhibit | |
Contact: | |
Matt Juneau | 225.388.7940 |
• | 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 Corporation | $ | 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 operations(d) | $ | 1.08 | $ | 0.91 | $ | 3.26 | $ | 2.78 |
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 |
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 and equity in net income of unconsolidated investments | 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 income of unconsolidated investments | 111,149 | 99,559 | 251,276 | 383,544 | |||||||||||
Equity in net income of unconsolidated investments (net of tax) | 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 |
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 |
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 | ) |
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 |
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 |
(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 Jiangxi Jiangli New Materials Science and Technology Co. Ltd. (“Jiangli New Materials”), the Company valued inventory purchased from Jiangli New Materials at fair value, which resulted in a markup of the underlying net book value of the inventory totaling approximately $23.1 million. The inventory markup was expensed over the estimated remaining selling period. For the three and nine months ended September 30, 2017, $0.6 million and $23.1 million ($0.2 million and $17.8 million after income taxes, or less than $0.01 and $0.16 per share), respectively, was included in Cost of goods sold related to the utilization of the inventory markup. |
(2) | Included in Research and development expenses for the three and nine months ended September 30, 2016 is a loss of $1.4 million ($0.6 million after income taxes, or $0.01 per share) resulting from the write-off of research and development fixed assets in China. |
(3) | The nine months ended September 30, 2017 included restructuring costs in each of our reportable segments at several locations, primarily at our Lithium site in Germany. These restructuring costs are included in the consolidated statements of income as follows (in millions): |
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 September 30, 2017 primarily resulted from the acquisition of Jiangli New Materials. For the three and nine months ended September 30, 2016, acquisition and integration related costs of $6.3 million and $42.4 million, respectively, related to integration costs resulting from the acquisition of Rockwood, and $0.4 million and $1.9 million, respectively, were in connection with other significant projects. Acquisition and integration related costs are included in the consolidated statements of income as follows (in millions): |
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, after income taxes | $ | 2.6 | $ | 3.1 | $ | 20.1 | $ | 29.5 | |||||||
Total acquisition and integration related costs, per diluted share | $ | 0.02 | $ | 0.03 | $ | 0.18 | $ | 0.26 |
(5) | Included in Gain on sales of businesses, net, for the nine months ended September 30, 2016 is $11.5 million ($11.3 million after income taxes, or $0.10 per share) related to the sale of the metal sulfides business and $112.3 million ($105.8 million after income taxes, or $0.93 per share) related to the sale of the minerals-based flame retardants and specialty chemicals businesses. In addition, Gain on sales of businesses, net, for the nine months ended September 30, 2016 includes a loss of $1.5 million, or $0.01 per share, on the sale of our wafer reclaim business. |
(6) | Included in Other (expenses) income, net for the three and nine months ended September 30, 2016 is a net gain of $0.9 million ($0.4 million after income taxes, or $0.01 per share) on the sales of properties. |
(7) | Included in Other (expenses) income, net, for the nine months ended September 30, 2017 is a gain of $6.0 million ($5.4 million after income taxes, or $0.05 per share) related to the acquisition of the remaining 50% interest in the Sales de Magnesio Ltda. joint venture in Chile. During the three months ended September 30, 2017 we adjusted this gain to reduce it by $1.4 million ($0.6 million after income taxes, or $0.01 per share). The gain was calculated based on the difference between the purchase price and the book value of the investment. |
(8) | Included in Interest and financing expenses for the nine months ended September 30, 2017 is a loss on early extinguishment of debt of $52.8 million ($38.1 million after income taxes, or $0.34 per share) related to the tender premiums, fees, unamortized discounts and unamortized deferred financings costs from the redemption of the 3.00% Senior notes, €307.0 million of the 1.875% Senior notes and $174.7 million of the 4.50% Senior notes. |
(9) | Included in Selling, general and administrative expenses for the nine months ended September 30, 2017 is $2.0 million ($1.4 million after income taxes, or $0.01 per share) for increased capital reserve contributions to a multiemployer plan, which is subject to a financial improvement plan. In addition, for the three and nine months ended September 30, 2017, capital reserve contributions for this multiemployer plan of $1.6 million and $4.6 million ($0.6 million and $2.8 million after income taxes, or $0.01 and $0.03 per share), respectively, included in Other (expenses) income, net, have been made to indemnify previously divested businesses. |
(10) | Other adjustments for the three months ended September 30, 2017 included amounts recorded in: |
• | 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. |
• | 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. |
(11) | Included in Income tax expense for the three and nine months ended September 30, 2017 are discrete net tax (benefits) expenses of ($0.4) million, or ($0.01) per share, and $2.7 million, or $0.02 per share, respectively. The net benefit for the three months is primarily related to a $2.2 million benefit from the excess tax benefits realized from stock-based compensation arrangements, and $1.0 million from the release of valuation allowances due to a foreign restructure plan, partially offset by expenses from accrual to return and rate changes of $2.8 million. The net expense for the nine months is primarily related to foreign rate changes of $14.8 million and accrual to return adjustments of $7.9 million, partially offset by a $10.8 million benefit from the release of valuation allowances due to a foreign restructuring plan, $2.3 million from release of unrecognized tax benefits, and $6.9 million benefit from excess tax benefits realized from stock-based compensation arrangements. Included in Income tax expense for the three months ended September 30, 2016 are benefits of $5.5 million, or $0.05 per share respectively, related mainly to foreign provision to return adjustments. Included in Income tax expense for the nine months ended September 30, 2016 are expense items of $1.6 million, or $0.01 per share respectively, related mainly to a change in the Company’s assertion over book and tax basis differences of a foreign entity, changes in valuation allowances necessary because of the announced divestiture of the Chemetall Surface Treatment business, and decreased by foreign tax rate changes and provision to return adjustments. |
(d) | Totals may not add due to rounding. |
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 (net of tax) | (694 | ) | (154 | ) | (2,093 | ) | (260 | ) | |||||||
Non-recurring and other unusual items from continuing operations (net of tax) | 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 with interest expense) | 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 | % |
Lithium and Advanced Materials | Bromine Specialties | Refining Solutions | Reportable Segments Total | All Other | Corporate | Consolidated Total | % of Net Sales | |||||||||||||||||||||||
Three months ended September 30, 2017: | ||||||||||||||||||||||||||||||
Net income (loss) attributable to Albemarle Corporation | $ | 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 Corporation | $ | 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 Corporation | $ | 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 (excluding items associated with interest expense) | 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 Corporation | $ | 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 tax) | — | — | — | — | — | 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 Lithium and Advanced Materials | |||||||||
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 |
Income from continuing operations before income taxes and equity in net income of unconsolidated investments | Income tax expense | Effective income tax rate | ||||||||
Three months ended September 30, 2017: | ||||||||||
As reported | $ | 129,644 | $ | 18,495 | 14.3 | % | ||||
Non-recurring, other unusual and non-operating pension and OPEB items from continuing operations | 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 items from continuing operations | 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 items from continuing operations | 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 items from continuing operations | (78,278 | ) | 6,200 | |||||||
As adjusted | $ | 366,801 | $ | 67,735 | 18.5 | % |
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