Neo Performance Materials Reports Second Quarter 2024 Results
Key Takeaways
1. |
Increased Adjusted EBITDA(1) Growth Outlook: Neo reports strong financial results of |
2. |
Adjusted EBITDA(1) Margin Expansion: For the six months ended |
3. |
New Tier 1 Commercial Award for Sintered Magnet Facility in |
4. |
Simplification of Business Continues: Neo has entered into an agreement to sell its majority ownership interest in the gallium trichloride facility in |
5. |
Strategic Review: Neo's Special Committee announces the appointment of |
Q2 2024 Highlights
(unless otherwise noted, all financial amounts in this news release are expressed in
- Neo's Q2 2024 revenue was
$107.5 million , vs Q2 2023 revenue of$170.4 million . - Operating income for Q2 2024 was
$5.8 million , vs Q2 2023 of$13.7 million . On a year-to-date basis, 2024 operating income was$11.8 million , vs$9.7 million in 2023. - Adjusted Net Income(1) for Q2 2024 was
$5.3 million , or$0.13 per share, vs Q2 2023 Adjusted Net Income(1) of$2.5 million or$0.05 per share. - Adjusted EBITDA(1) for Q2 2024 was
$13.4 million , vs Q2 2023 of$19.5 million . On a year-to-date basis, 2024 Adjusted EBITDA(1) was$24.2 million , vs$20.3 million in 2023. - Neo had
$100.5 million in cash and$49.5 million in gross debt on its balance sheet as ofJune 30, 2024 . Neo invested$26.7 million in capital expenditures for the six months endedJune 30, 2024 , including sustaining capital expenditures of$1.9 million . Neo distributed$6.2 million in dividends to Neo's shareholders, and repurchased$2.3 million of common shares, in the first half of the year. - A quarterly dividend of
Cdn$0.10 per common share was declared onAugust 8, 2024 , for shareholders of record onSeptember 17, 2024 , with a payment date ofSeptember 27, 2024 .
"As Neo crosses the halfway mark of the year, we are pleased to see the early results of our Company-wide transformation process," said
"Our continued focus on disciplined execution was demonstrated by the new Tier 1 commercial award for our sintered magnet facility in
HIGHLIGHTS OF SECOND QUARTER 2024 CONSOLIDATED PERFORMANCE
($000s, except volume and per share information) |
|
Three months ended |
|
Six months ended |
|
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
Volume |
|
|
|
|
|
|
|
|
|
Magnequench |
|
1,190 |
|
1,037 |
|
2,403 |
|
2,024 |
|
C&O |
|
1,880 |
|
2,188 |
|
3,682 |
|
4,037 |
|
Rare Metals |
|
88 |
|
82 |
|
175 |
|
180 |
|
Corporate / Eliminations |
|
(20) |
|
— |
|
(40) |
|
— |
|
Total Volume |
|
3,138 |
|
3,307 |
|
6,220 |
|
6,241 |
|
|
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Magnequench |
|
$ 42,096 |
|
$ 49,329 |
|
$ 87,576 |
|
$ 104,494 |
|
C&O |
|
34,478 |
|
71,276 |
|
74,991 |
|
122,565 |
|
Rare Metals |
|
31,909 |
|
49,825 |
|
69,187 |
|
78,901 |
|
Corporate / Eliminations |
|
(934) |
|
— |
|
(2,110) |
|
— |
|
Consolidated Revenue |
|
$ 107,549 |
|
$ 170,430 |
|
$ 229,644 |
|
$ 305,960 |
|
|
|
|
|
|
|
|
|
|
|
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
Magnequench |
|
$ 2,257 |
|
$ 1,077 |
|
$ 5,641 |
|
$ 2,032 |
|
C&O |
|
198 |
|
1,524 |
|
(1,906) |
|
(4,602) |
|
Rare Metals |
|
8,573 |
|
16,686 |
|
17,373 |
|
22,518 |
|
Corporate / Eliminations |
|
(5,204) |
|
(5,612) |
|
(9,336) |
|
(10,270) |
|
Consolidated Operating Income |
|
$ 5,824 |
|
$ 13,675 |
|
$ 11,772 |
|
$ 9,678 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA") (1) |
|||||||||
Magnequench |
|
$ 6,168 |
|
$ 5,274 |
|
$ 12,280 |
|
$ 8,530 |
|
C&O |
|
2,651 |
|
2,913 |
|
2,271 |
|
(1,649) |
|
Rare Metals |
|
8,786 |
|
16,950 |
|
18,024 |
|
23,114 |
|
Corporate / Eliminations |
|
(4,213) |
|
(5,589) |
|
(8,423) |
|
(9,660) |
|
Consolidated Adjusted EBITDA(1) |
|
$ 13,392 |
|
$ 19,548 |
|
$ 24,152 |
|
$ 20,335 |
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss) |
|
$ 883 |
|
$ 329 |
|
$ 1,732 |
|
$ (10,371) |
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per share attributable to equity holders of Neo |
|
||||||||
Basic |
|
$ 0.02 |
|
$ 0.01 |
|
$ 0.04 |
|
$ (0.22) |
|
Diluted |
|
$ 0.02 |
|
$ 0.01 |
|
$ 0.04 |
|
$ (0.22) |
|
|
|
|
|
|
|
|
|
|
|
Cash spent on property, plant and equipment and intangible assets |
|
$ 10,677 |
|
$ 6,140 |
|
$ 26,656 |
|
$ 9,652 |
|
Cash taxes paid |
|
$ 5,790 |
|
$ 2,772 |
|
$ 13,303 |
|
$ 8,033 |
|
Dividends paid to shareholders |
|
$ 3,127 |
|
$ 3,343 |
|
$ 6,211 |
|
$ 6,722 |
|
Repurchase of common shares under Normal Course Issuer Bid |
|
$ — |
|
$ 1,202 |
|
$ 2,250 |
|
$ 1,202 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
|
Cash and cash equivalents |
|
|
|
|
$ 100,483 |
|
$ 86,895 |
|
|
Restricted cash |
|
|
|
|
$ 53 |
|
$ 3,357 |
|
|
Current & long-term debt |
|
|
|
|
$ 49,454 |
|
$ 25,331 |
|
MAGNEQUENCH
Neo's Magnequench business unit won two new major awards to supply electric vehicle traction motor customers in 2024. In
Overall, the business had a strong quarter, despite weak demand within the remaining portion of the magnetic powder business. The automotive magnetics market is gradually recovering back to prior run rate levels. Magnequench's heavy-rare-earth-free traction motors delivered substantial growth with year-to-date volume being higher compared to the same period in 2023, partially driven by changes in customers inventory ordering patterns.
Magnequench operating facilities in
CHEMICALS & OXIDES ("C&O")
Margins in the emissions catalyst segment remain strong notwithstanding demand softness and customer de-stocking during the second quarter. The relocation and commissioning of the new environmental emissions catalyst manufacturing facility delivered solid progress, with customer qualifications well underway.
The environmental protective water treatment solutions business achieved its sixth consecutive quarter of volume growth and delivered strong gross margins.
Stronger margins in C&O were offset by the separation portion of the C&O business which faced challenges from falling rare earth prices, leading to unfavourable lead-lag effects as materials bought at higher costs three to five months earlier were processed.
RARE METALS
The Rare Metals business unit had a strong quarter, even though it was lower compared to last year's second quarter. This quarter's performance was driven by a healthy hafnium order book for 2024 with contracted volumes at strong pricing and sufficient inventory on hand.
Rare Metals is already seeing positive results from the milestone change it made in its manufacturing strategy of niobium and tantalum, shifting focus on downstream, value-add operations. The focus now is on improving historical yields and efficiency in the higher value finishing processes.
On
Q2 2024 UPDATE ON STRATEGIC INITIATIVES
NAMCO Relocation, Upgrade and Modernization
Project nearing completion on time and anticipating
Neo is nearing completion of the relocation, upgrade, and modernization of its environmental emissions catalyst manufacturing facility to a newly built site. The facility began customer re-qualification of products in the first half of 2024 and, pending customer approval, is expected to achieve full production by the end of 2024. The project remains on time and below budget, with a current total estimated project spend of
New Electric Vehicle Magnet Platform Awarded for Sintered Magnet Plant in
Tier 1 OEM award represents 35% of manufacturing facility's capacity in peak operating year; project construction is on time and on budget
In
Impact of Rare Earth Prices on Separation Gross Margins
Neo's rare earth separation business continues to incur operating losses due to the commodity rare earth price declines in the first six months of 2024. To reduce the exposure to underlying rare earth market prices, improve ROCE and reduce earnings volatility, Neo's C&O business unit shut down its light rare earth separations facility in
Neo has also made strategic efforts to further reduce its financial risk related to commodity rare earth price movements, which affect both Magnequench and C&O. These include continuing customer pass-through price provisions, aligning contract durations with inventory turns, and increasing overall inventory turns.
Neo has long strategically positioned itself as a value-add producer that drives margins from converting the input commodity and creating a higher value finished product. Neo is not exposed to fixed cost environments for the majority of its input costs. Rather, the largest of Neo's input costs, the commodity itself, tends to fluctuate in relationship with finished goods market prices.
Simplification of Business and Increased Operational Focus
Delivery of manufacturing transformations to improve ROCE and reduce earnings volatility
In
Sourcing and Rare Earth Supply Strategy
In
Magnequench is focused on flexibility within its raw material sourcing strategy to ensure resilience across its supply chain. Magnequench sources 5% to 15% of its magnetic rare earths oxides internally through its vertically integrated supply chain and the balance is sourced from third party critical minerals processors. Magnequench offers a vertically integrated supply chain and further sourcing optionality for its product offering.
Neo remains a trusted supplier and partner within the rare earths and magnetic industries, with one of the most geographically diversified supply sources for its critical materials.
CASH ALLOCATION HIGHLIGHTS
Neo's balance sheet remains strong. As at
Neo invested
For the six months ended
STRATEGIC REVIEW
On
The Strategic Committee has retained
There is no timetable for completion of the strategic review process, and Neo does not intend to comment further until it determines that such disclosure is necessary or appropriate. There can be no assurance that the strategic review process will result in any transaction or other alternative, nor any assurance as to its outcome or timing.
2024 OUTLOOK
- With strong Adjusted EBITDA(1) results for the six months ended
June 30, 2024 , Neo increases its outlook for fiscal 2024 to$45 million to$50 million of Adjusted EBITDA(1), a 20% to 35% increase over the prior year. - Neo continues to take transformational actions within its portfolio, positioning it to be more focused and resilient. For fiscal year 2025, Neo expects continued improvement in financial performance, and establishes an outlook for another year of double-digit percentage Adjusted EBITDA(1) growth for fiscal year 2025 as compared to fiscal year 2024.
CONFERENCE CALL ON
Management will host a teleconference call on
NON-IFRS MEASURES
This news release refers to certain non-IFRS financial measures and ratios such as "Adjusted Net Income", "EBITDA", "Adjusted EBITDA", and "Adjusted EBITDA Margin". These measures and ratios are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and may not be comparable to similar measures presented by other companies. Rather, these measures and ratios are provided as additional information to complement IFRS financial measures by providing further understanding of Neo's results of operations from management's perspective. Neo's definitions of non-IFRS measures used in this news release may not be the same as the definitions for such measures used by other companies in their reporting. Non-IFRS measures and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Neo's financial information reported under IFRS. Neo uses non-IFRS financial measures and ratios to provide investors with supplemental measures of its base-line operating performance and to eliminate items that have less bearing on operating performance or operating conditions and thus highlight trends in its core business that may not otherwise be apparent when relying solely on IFRS financial measures. Neo believes that securities analysts, investors and other interested parties frequently use non-IFRS financial measures and ratios in the evaluation of issuers. Neo's management also uses non-IFRS financial measures to facilitate operating performance comparisons from period to period. For definitions of how Neo defines such financial measures and ratios, please see the "Non-IFRS Financial Measures" section of Neo's management's discussion and analysis filing for the three and six months ended
___________________________________________ |
(1) Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please see information on this and other non-IFRS measures in the "Non-IFRS Measures" section of this news release and in the MD&A, available on Neo's website at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca |
TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
($000s) |
|
|
|
|
ASSETS |
|
|
|
|
Current |
|
|
|
|
Cash and cash equivalents |
|
$ 100,483 |
|
$ 86,895 |
Restricted cash |
|
53 |
|
3,357 |
Accounts receivable |
|
58,822 |
|
67,643 |
Inventories |
|
163,946 |
|
197,453 |
Income taxes receivable |
|
371 |
|
744 |
Other current assets |
|
26,182 |
|
22,542 |
Total current assets |
|
349,857 |
|
378,634 |
Property, plant and equipment |
|
147,927 |
|
118,918 |
Intangible assets |
|
35,744 |
|
38,511 |
|
|
64,223 |
|
65,160 |
Investments |
|
15,985 |
|
17,955 |
Deferred tax assets |
|
6,911 |
|
6,760 |
Other non-current assets |
|
905 |
|
1,066 |
Total non-current assets |
|
271,695 |
|
248,370 |
Total assets |
|
$ 621,552 |
|
$ 627,004 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
Current |
|
|
|
|
Accounts payable and other accrued charges |
|
53,608 |
|
71,984 |
Income taxes payable |
|
4,271 |
|
9,207 |
Provisions |
|
714 |
|
823 |
Lease obligations |
|
1,783 |
|
1,664 |
Derivative liability |
|
39,242 |
|
36,294 |
Current portion of long-term debt |
|
4,634 |
|
2,230 |
Other current liabilities |
|
1,605 |
|
692 |
Total current liabilities |
|
105,857 |
|
122,894 |
Long term debt |
|
44,820 |
|
23,101 |
Employee benefits |
|
112 |
|
108 |
Derivative liability |
|
1,324 |
|
1,082 |
Provisions |
|
26,354 |
|
26,197 |
Deferred tax liabilities |
|
12,470 |
|
14,294 |
Lease obligations |
|
4,131 |
|
2,425 |
Other non-current liabilities |
|
1,136 |
|
1,592 |
Total non-current liabilities |
|
90,347 |
|
68,799 |
Total liabilities |
|
196,204 |
|
191,693 |
Non-controlling interest |
|
3,322 |
|
3,164 |
Equity attributable to equity holders of |
|
422,026 |
|
432,147 |
Total equity |
|
425,348 |
|
435,311 |
Total liabilities and equity |
|
$ 621,552 |
|
$ 627,004 |
See accompanying notes to this table in Neo's Interim Condensed Consolidated Financial Statements for the three and six months ended |
TABLE 6: CONSOLIDATED RESULTS OF OPERATIONS
Comparison of the three and six months ended
($000s) |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Revenue |
|
$ 107,549 |
|
$ 170,430 |
|
$ 229,644 |
|
$ 305,960 |
Cost of sales |
|
|
|
|
|
|
|
|
Cost excluding depreciation and amortization |
|
78,250 |
|
132,589 |
|
172,998 |
|
249,210 |
Depreciation and amortization |
|
2,004 |
|
2,368 |
|
3,934 |
|
4,536 |
Gross profit |
|
27,295 |
|
35,473 |
|
52,712 |
|
52,214 |
Expenses |
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
14,605 |
|
16,111 |
|
29,247 |
|
30,982 |
Share-based compensation |
|
1,476 |
|
(82) |
|
1,380 |
|
768 |
Depreciation and amortization |
|
1,876 |
|
1,814 |
|
3,604 |
|
3,580 |
Research and development |
|
3,307 |
|
3,955 |
|
6,502 |
|
7,206 |
Impairment of assets |
|
207 |
|
— |
|
207 |
|
— |
|
|
21,471 |
|
21,798 |
|
40,940 |
|
42,536 |
Operating income |
|
5,824 |
|
13,675 |
|
11,772 |
|
9,678 |
Other (expense) income |
|
(86) |
|
(171) |
|
3,593 |
|
(649) |
Finance costs, net |
|
(1,572) |
|
(4,085) |
|
(2,912) |
|
(8,097) |
Foreign exchange loss |
|
(544) |
|
(662) |
|
(1,266) |
|
(1,242) |
Income (loss) from operations before of associates |
|
3,622 |
|
8,757 |
|
11,187 |
|
(310) |
Income tax expense |
|
(3,042) |
|
(5,988) |
|
(7,383) |
|
(7,598) |
Income (loss) from operations before |
|
580 |
|
2,769 |
|
3,804 |
|
(7,908) |
Equity income (loss) of associates (net of income tax) |
|
303 |
|
(2,440) |
|
(2,072) |
|
(2,463) |
Net income (loss) |
|
$ 883 |
|
$ 329 |
|
$ 1,732 |
|
$ (10,371) |
Attributable to: |
|
|
|
|
|
|
|
|
Equity holders of |
|
$ 859 |
|
$ 310 |
|
$ 1,732 |
|
$ (10,144) |
Non-controlling interest |
|
24 |
|
19 |
|
— |
|
(227) |
|
|
$ 883 |
|
$ 329 |
|
$ 1,732 |
|
$ (10,371) |
Earnings (loss) per share attributable to equity holders |
|
|
|
|
|
|
||
Basic |
|
$ 0.02 |
|
$ 0.01 |
|
$ 0.04 |
|
$ (0.22) |
Diluted |
|
$ 0.02 |
|
$ 0.01 |
|
$ 0.04 |
|
$ (0.22) |
See Management's Discussion and Analysis for the three and six months ended |
TABLE 7: RECONCILIATIONS OF NET INCOME (LOSS) TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW
($000s) |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income (loss) |
|
$ 883 |
|
$ 329 |
|
$ 1,732 |
|
$ (10,371) |
Add back (deduct): |
|
|
|
|
|
|
|
|
Finance cost, net |
|
1,572 |
|
4,085 |
|
2,912 |
|
8,097 |
Income tax expense |
|
3,042 |
|
5,988 |
|
7,383 |
|
7,598 |
Depreciation and amortization included in cost of sales |
|
2,004 |
|
2,368 |
|
3,934 |
|
4,536 |
Depreciation and amortization included in operating expenses |
|
1,876 |
|
1,814 |
|
3,604 |
|
3,580 |
EBITDA |
|
9,377 |
|
14,584 |
|
19,565 |
|
13,440 |
Adjustments to EBITDA: |
|
|
|
|
|
|
|
|
Other expense (income) (1) |
|
86 |
|
171 |
|
(3,593) |
|
649 |
Foreign exchange loss (2) |
|
544 |
|
662 |
|
1,266 |
|
1,242 |
Equity (income) loss of associates |
|
(303) |
|
2,440 |
|
2,072 |
|
2,463 |
Share-based compensation (3) |
|
1,476 |
|
(82) |
|
1,380 |
|
768 |
Fair value adjustments to inventory acquired |
|
— |
|
572 |
|
— |
|
572 |
Project startup & transition costs (4) |
|
2,005 |
|
— |
|
3,255 |
|
— |
Transaction costs on business combination |
|
— |
|
1,201 |
|
— |
|
1,201 |
Impairment of assets (5) |
|
207 |
|
— |
|
207 |
|
— |
Adjusted EBITDA (6) |
|
$ 13,392 |
|
$ 19,548 |
|
$ 24,152 |
|
$ 20,335 |
Adjusted EBITDA Margins (6) |
|
12.5 % |
|
11.5 % |
|
10.5 % |
|
6.6 % |
Less: |
|
|
|
|
|
|
|
|
Capital expenditures (7) |
|
$ 18,571 |
|
$ 6,820 |
|
$ 36,048 |
|
$ 11,836 |
Free Cash Flow (6) |
|
$ (5,179) |
|
$ 12,728 |
|
$ (11,896) |
|
$ 8,499 |
Free Cash Flow Conversion (6) |
|
(38.7 %) |
|
65.1 % |
|
(49.3 %) |
|
41.8 % |
Notes: |
|
(1) |
Represents other expense (income) resulting from non-operational related activities, including provisions for damages for outstanding legal claims related to historic volumes. In addition, other income for the six months ended |
|
|
(2) |
Represents unrealized and realized foreign exchange losses that include non-cash adjustments in translating foreign denominated monetary assets and liabilities. |
|
|
(3) |
Represents share-based compensation expense in respect of the long-term incentive plans (the "LTIP") which was adopted on |
|
|
(4) |
Represents start-up costs (primarily pre-operational staffing costs) at Neo's new European sintered magnet facility, as well as transition cost during qualification and start-up of the NAMCO facility and winding down of the ZAMR facility. Neo has removed these charges to provide comparability with historic periods. |
|
|
(5) |
Represents an impairment charge of |
|
|
(6) |
Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash Flow" and "Free Cash Flow Conversion". Please see information on this and other non-IFRS measures in the "Non-IFRS Measures" section of this news release and in the MD&A, available on Neo's website www.neomaterials.com and on SEDAR+ at www.sedarplus.ca. |
|
|
(7) |
Includes cash and non-cash capital expenditures of |
TABLE 8: RECONCILIATIONS OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)
($000s) |
|
Three Months Ended |
|
Six Months Ended |
||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
Net income (loss) |
|
$ 883 |
|
$ 329 |
|
$ 1,732 |
|
$ (10,371) |
Adjustments to net income (loss): |
|
|
|
|
|
|
|
|
Foreign exchange loss (1) |
|
544 |
|
662 |
|
1,266 |
|
1,242 |
Impairment of assets (2) |
|
207 |
|
— |
|
207 |
|
— |
Share-based compensation (3) |
|
1,476 |
|
(82) |
|
1,380 |
|
768 |
Project start-up & transition cost (4) |
|
2,005 |
|
— |
|
3,255 |
|
— |
Other items included in other expense (income) (5) |
|
158 |
|
212 |
|
(2,890) |
|
619 |
Fair value adjustments to inventory acquired |
|
— |
|
572 |
|
— |
|
572 |
Transaction costs on business combination |
|
— |
|
1,201 |
|
— |
|
1,201 |
Tax impact of the above items |
|
(22) |
|
(429) |
|
694 |
|
(547) |
Adjusted net income (loss) |
|
$ 5,251 |
|
$ 2,465 |
|
$ 5,644 |
|
$ (6,516) |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
|
|
Equity holders of Neo |
|
$ 5,227 |
|
$ 2,446 |
|
$ 5,644 |
|
$ (6,289) |
Non-controlling interest |
|
$ 24 |
|
$ 19 |
|
$ — |
|
$ (227) |
|
|
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
||||||||
Basic |
|
41,751,560 |
|
45,196,921 |
|
41,791,628 |
|
45,196,921 |
Diluted |
|
42,343,082 |
|
45,621,275 |
|
42,429,648 |
|
45,196,921 |
Adjusted income (loss) per share (6) attributable to equity holders of Neo: |
||||||||
Basic |
|
$ 0.13 |
|
$ 0.05 |
|
$ 0.14 |
|
$ (0.14) |
Diluted |
|
$ 0.12 |
|
$ 0.05 |
|
$ 0.13 |
|
$ (0.14) |
Notes: |
|
(1) |
Represents unrealized and realized foreign exchange losses that include non-cash adjustments in translating foreign denominated monetary assets and liabilities. |
|
|
(2) |
Represents an impairment charge of |
|
|
(3) |
Represents share-based compensation expense in respect of the LTIP which was adopted on |
|
|
(4) |
Represents start-up costs (primarily pre-operational staffing costs) at Neo's new European sintered magnet facility, as well as transition cost during qualification and start-up of the NAMCO facility and winding down of the ZAMR facility. Neo has removed these charges to provide comparability with historic periods. |
|
|
(5) |
Represents other expense (income) resulting from non-operational related activities, including provisions for damages for outstanding legal claims related to historic volumes. In addition, other income for the six months ended |
|
|
(6) |
Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash Flow" and "Free Cash Flow Conversion". Please see information on this and other non-IFRS measures in the "Non-IFRS Measures" section of this news release and in the MD&A, available on Neo's website www.neomaterials.com and on SEDAR+ at www.sedarplus.ca. |
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials - magnetic powders and magnets, specialty chemicals, metals, and alloys - are critical to the performance of many everyday products and emerging technologies. Neo's products help to deliver the technologies of tomorrow to consumers today. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in
Cautionary Statements Regarding Forward Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws in
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