EX-99.1 2 a02-16x2023ex991segmentrec.htm EX-99.1 Document

Exhibit 99.1

Albemarle Corporation and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)

The Company’s chief operating decision maker uses adjusted EBITDA (as defined below) to assess the ongoing performance of the Company’s business segments and to allocate resources. We define adjusted EBITDA as earnings before interest and financing expenses, income tax expense, depreciation and amortization, as adjusted on a consistent basis for certain non-operating, non-recurring or unusual items in a balanced manner and on a segment basis. These non-operating, non-recurring or 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, non-operating pension and OPEB items and other significant non-recurring items. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. We reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Total adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, the generally accepted accounting principles in the United States (“U.S. GAAP”). Adjusted EBITDA should not be considered as an alternative to Net (loss) income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP.
Three months endedYear ended December 31, 2022
March 31, 2022June 30, 2022September 30, 2022December 31, 2022
Net sales:
Energy Storage$463,704 $802,393 $1,414,053 $1,980,795 $4,660,945 
Specialties446,147 466,875 441,928 404,637 1,759,587 
Ketjen217,877 210,325 235,824 235,546 899,572 
Total net sales$1,127,728 $1,479,593 $2,091,805 $2,620,978 $7,320,104 
Adjusted EBITDA:
Energy Storage$285,247 $483,517 $1,084,643 $1,178,853 $3,032,260 
Specialties152,602 147,374 133,558 93,784 527,318 
Ketjen16,910 9,792 4,635 (2,605)28,732 
Corporate(22,829)(30,474)(32,870)(26,280)(112,453)
Total adjusted EBITDA$431,930 $610,209 $1,189,966 $1,243,752 $3,475,857 
1


Three months endedYear ended December 31, 2021
March 31, 2021June 30, 2021September 30, 2021December 31, 2021
Net sales:
Energy Storage$198,247 $243,839 $291,475 $333,869 $1,067,430 
Specialties361,176 356,243 345,537 361,241 1,424,197 
Ketjen220,243 148,344 193,554 199,094 761,235 
All Other49,625 25,470 — — 75,095 
Total net sales$829,291 $773,896 $830,566 $894,204 $3,327,957 
Adjusted EBITDA:
Energy Storage$74,564 $80,454 $100,186 $116,180 $371,384 
Specialties126,512 121,633 111,242 109,449 468,836 
Ketjen25,427 21,164 33,103 27,247 106,941 
All Other21,479 8,379 — — 29,858 
Corporate(17,928)(37,002)(26,962)(24,153)(106,045)
Total adjusted EBITDA$230,054 $194,628 $217,569 $228,723 $870,974 
See below for a reconciliation of adjusted EBITDA, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reporting in accordance with U.S. GAAP. For additional explanation of the adjustments from Net income attributable to Albemarle Corporation to adjusted EBITDA, see the Company’s previously furnished on Form 8-K, under Item 2.02, for the periods presented.
Three months endedYear ended December 31, 2022
March 31, 2022June 30, 2022September 30, 2022December 31, 2022
Net income attributable to Albemarle Corporation$253,383 $406,773 $897,215 $1,132,445 $2,689,816 
Depreciation and amortization66,574 70,993 77,713 85,561 300,841 
Loss on sale of interest in properties8,400 — — — 8,400 
Acquisition and integration related costs1,724 5,375 2,145 7,015 16,259 
Interest and financing expenses27,834 41,409 29,691 24,039 122,973 
Income tax expense80,530 89,018 196,938 24,102 390,588 
Non-operating pension and OPEB items(5,280)(5,038)(5,027)(41,687)(57,032)
Other(1,235)1,679 (8,709)12,277 4,012 
Total Adjusted EBITDA$431,930 $610,209 $1,189,966 $1,243,752 $3,475,857 
2


Three months endedYear ended December 31, 2021
March 31, 2021June 30, 2021September 30, 2021December 31, 2021
Net income (loss) attributable to Albemarle Corporation$95,677 $424,600 $(392,781)$(3,824)$123,672 
Depreciation and amortization62,260 61,423 62,082 68,235 254,000 
Restructuring and other774 766 754 733 3,027 
(Gain) loss on sale of business/interest in properties— (429,408)984 132,453 (295,971)
Acquisition and integration related costs2,162 1,915 1,553 7,040 12,670 
Interest and financing expenses43,882 7,152 5,136 5,306 61,476 
Income tax expense22,107 106,985 (114,670)15,024 29,446 
Non-operating pension and OPEB items(5,465)(5,471)(5,471)(62,407)(78,814)
Legal accrual— — 657,412 — 657,412 
Albemarle Foundation contribution— 20,000 — — 20,000 
Indemnification adjustments— — — 39,381 39,381 
Other8,657 6,666 2,570 26,782 44,675 
Total Adjusted EBITDA$230,054 $194,628 $217,569 $228,723 $870,974 
3