Market Overview

Livent Announces Second Quarter 2019 Results

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PHILADELPHIA, Aug. 6, 2019 /PRNewswire/ -- Livent Corporation (NYSE:LTHM) today reported results for the second quarter of 2019.  Livent reported revenue of $114.0 million, an increase of 6 percent compared to the same quarter in 2018, and GAAP net income of $15.5 million.  Second quarter 2019 Adjusted EBITDA and adjusted earnings per share were $28.0 million and 12 cents per diluted share, respectively.  Revenue, Adjusted EBITDA and adjusted earnings per share were all in-line with the guidance ranges, with price/customer mix, volumes and costs all consistent with previously communicated expectations. 

Livent Corporation (PRNewsfoto/Livent Corporation)

"We achieved higher revenues in the second quarter, with increased volumes partially offset by lower pricing," said Paul Graves, president and chief executive officer of Livent.  "Our hydroxide network is now running at record levels of production and we continue to meet all key milestones necessary to deliver the first phase of the Argentina expansion by the end of 2020."

Q3 and 2019 Outlook (1)

Livent expects third quarter 2019 revenue to be in a range of $105 million to $115 million, compared to $112 million in the same period in 2018.  Third quarter 2019 Adjusted EBITDA and adjusted earnings per share are projected to be in a range of $26 million to $30 million and 11 cents to 14 cents per diluted share, respectively.

Livent maintains its full-year 2019 guidance, with revenue expected to be in a range of $435 million to $475 million, Adjusted EBITDA to be in a range of $125 million to $145 million and adjusted earnings per share to be in a range of 56 cents to 66 cents per diluted share.

"We expect total volumes available for sale to be higher in the second half of this year across all major products, most notably in hydroxide and carbonate.  We also expect that increased production from Argentina will result in margin improvement," continued Graves.  "The market for electric vehicles remains strong, with passenger EV sales up roughly 45% globally through the first half of this year, and up over 60% in the same period in China.  Leading OEMs and battery producers are now providing greater clarity as they prepare for new vehicle launches beginning in 2020.  Livent remains well-positioned to take advantage of continuing demand growth for lithium products."

The table below provides additional estimates for select financial items:


Full-Year 2019

·  Interest expense

·  Adjusted tax rate         

·  Full-year weighted average diluted shares outstanding

·  Depreciation & Amortization

·  Adjusted cash from operations                     

·  Capital additions and other investing activities  

$1 - $2

19 – 23

~146.5 

$22 - $26

$90 - $120

$210 - $240

million

percent

million

million

million

million

Supplemental Information

Livent has posted supplemental information on the web at www.livent.com, including reconciliations of non-GAAP financial measures to the most directly comparable financial measure calculated and presented in accordance with GAAP. 

About Livent
For more than six decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent employs approximately 800 people throughout the world and operates manufacturing sites in the United States, England, India, China and Argentina. For more information, visit Livent.com

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this presentation are forward-looking statements.  In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about us, may include projections of our future financial performance, our anticipated growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements, including a decline in the growth in demand for electric vehicles; adverse global economic conditions; the success of our research and development efforts; volatility in the price for performance lithium compounds; risks relating to our planned production expansion and related capital expenditures; reduced customer demand, or delays in growth of customer demand, for higher performance lithium compounds, the potential development and adoption of battery technologies that do not rely on performance lithium compounds as an input; risks inherent in international operations and sales, including political, financial and operational risks specific to Argentina, China and other countries where we have active operations; customer concentration and the possible loss of, or significant reduction in orders from, large customers; failure to satisfy customer quality standards; fluctuations in the price of energy and certain raw materials; failure to achieve the expected benefits of our separation from FMC as well as the other factors described under the caption entitled "Risk Factors" in our 2018 Form 10-K filed with the Securities and Exchange Commission on February 28, 2019 and first quarter 2019 Form 10-Q filed with the Securities and Exchange Commission on May 8, 2019. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. We are under no duty to update any of these forward-looking statements after the date of this presentation to conform our prior statements to actual results or revised expectations.

  1. Although we provide forecasts for adjusted earnings per share, Adjusted EBITDA and adjusted cash from operations, we are not able to forecast the most directly comparable measures calculated and presented in accordance with GAAP.  Certain elements of the composition of the GAAP amounts are not predictable, making it impractical for us to forecast such GAAP measures or to reconcile corresponding non-GAAP financial measures to such GAAP measures without unreasonable efforts. For the same reason, we are unable to address the probable significance of the unavailable information. Such elements include, but are not limited to, restructuring, transaction related charges, and related cash activity.  As a result, no GAAP outlook is provided.

Media contact: Juan Carlos Cruz +1.215.299.6170
juan.carlos.cruz@livent.com

Investor contact: Daniel Rosen +1.215.299.6208
daniel.rosen@livent.com

 

LIVENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, in millions, except per share data)



Three Months Ended June 30,


Six Months Ended June 30,


2019


2018


2019


2018

Revenue

$

114.0



$

107.9



$

212.3



$

210.7


Costs of sales

80.2



54.1



145.8



104.7


Gross margin

33.8



53.8



66.5



106.0


Selling, general and administrative expenses

9.8



4.4



19.0



8.0


Corporate allocations



5.0





10.1


Research and development expenses

0.8



1.0



1.6



2.0


Restructuring and other charges

3.8



0.2



3.9



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