CHARLOTTE, N.C., Nov. 7,
2016 /PRNewswire/ --
Third quarter 2016 highlights:
- Third quarter earnings were $128.2
million, or $1.13 per diluted
share, an increase of 96% over the prior year
- Adjusted net income from continuing operations was $102.7 million, or $0.91 per diluted share, an increase of 20% over
the prior year
- Third quarter adjusted EBITDA was $188.3
million, an increase of 10% over the prior year, excluding
the impact of divestitures
- Year-to-date cash from operations was $452.4 million, an increase of 43% over the prior
year
- Signed definitive agreement to acquire the lithium hydroxide
and lithium carbonate conversion assets of Jiangxi Jiangli New
Materials Science and Technology Co. Ltd.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
In thousands,
except per share amounts
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
$
|
654,010
|
|
|
$
|
693,216
|
|
|
$
|
1,980,548
|
|
|
$
|
2,103,819
|
|
Adjusted
EBITDA
|
$
|
188,329
|
|
|
$
|
180,681
|
|
|
$
|
570,833
|
|
|
$
|
581,519
|
|
Net income from
continuing operations
|
$
|
114,512
|
|
|
$
|
59,842
|
|
|
$
|
428,334
|
|
|
$
|
158,313
|
|
Net income
attributable to Albemarle Corporation
|
$
|
128,220
|
|
|
$
|
65,392
|
|
|
$
|
41,585
|
|
|
$
|
160,654
|
|
Diluted earnings per
share from continuing operations
|
$
|
0.93
|
|
|
$
|
0.48
|
|
|
$
|
3.53
|
|
|
$
|
1.27
|
|
Diluted earnings per
share attributable to Albemarle Corporation
|
$
|
1.13
|
|
|
$
|
0.58
|
|
|
$
|
0.37
|
|
|
$
|
1.44
|
|
Non-operating pension and OPEB items(a)
|
—
|
|
|
(0.01)
|
|
|
—
|
|
|
(0.02)
|
|
Non-recurring and other unusual items(b)
|
(0.02)
|
|
|
0.29
|
|
|
(0.75)
|
|
|
1.30
|
|
Discontinued operations(c)
|
(0.20)
|
|
|
(0.10)
|
|
|
3.16
|
|
|
(0.17)
|
|
Adjusted diluted
earnings per share from continuing
operations(d)
|
$
|
0.91
|
|
|
$
|
0.76
|
|
|
$
|
2.78
|
|
|
$
|
2.55
|
|
|
See accompanying
notes (a) through (d) to the condensed consolidated financial
information and non-GAAP reconciliations.
|
Albemarle Corporation (NYSE: ALB) reported net income from
continuing operations for the third quarter 2016 of $114.5 million, or $0.93 per diluted share (after income
attributable to noncontrolling interests), compared to $59.8 million, or $0.48 per diluted share in the third quarter
2015. The Company reported third quarter 2016 net income
attributable to Albemarle Corporation of $128.2 million, or $1.13 per diluted share, compared to net income
attributable to Albemarle Corporation of $65.4 million, or $0.58 per diluted share, for third quarter 2015.
Third quarter 2016 adjusted net income from continuing operations
was $102.7 million, or $0.91 per diluted share, compared to $85.5 million, or $0.76 per diluted share, for third quarter 2015
(see notes to the condensed consolidated financial information).
The Company reported net sales of $654.0
million in third quarter 2016, down from net sales of
$693.2 million in the third quarter
of 2015, driven by the divestitures of the metal sulfides and
minerals-based flame retardants and specialty chemicals businesses
of $73.3 million, partially offset by
the impact of higher sales volumes, as well as favorable price and
mix impacts in certain businesses and favorable currency exchange
impacts.
Net income from continuing operations for the nine months ended
September 30, 2016 was $428.3
million, or $3.53 per diluted
share (after income attributable to noncontrolling interests),
compared to $158.3 million, or
$1.27 per diluted share, for the nine
months ended September 30, 2015.
Including a non-recurring, non-cash tax net charge of $411.3 million related to our decision to sell
our Chemetall Surface Treatment business, partially offset by gains
on sales of businesses of $122.3
million (see notes to the condensed consolidated financial
information), the Company reported net income attributable to
Albemarle Corporation of $41.6
million, or $0.37 per diluted
share, for the nine months ended September 30, 2016, compared
to net income attributable to Albemarle Corporation of $160.7 million, or $1.44 per diluted share for the nine months ended
September 30, 2015. Adjusted net
income from continuing operations for the nine months ended
September 30, 2016 was $315.0
million, or $2.78 per diluted
share, compared to $284.1 million, or
$2.55 per diluted share, for the same
period 2015 (see notes to the condensed consolidated financial
information). Net sales for the nine months ended
September 30, 2016 were $1.98
billion, down from net sales of $2.10
billion, driven primarily by the divestitures of the metal
sulfides and minerals-based flame retardants and specialty
chemicals businesses of $194.4
million, partially offset by the impact of higher sales
volumes, as well as favorable price and mix impacts in certain
businesses and favorable currency exchange impacts.
"In the third quarter, we continued our strong growth trend as
adjusted EBITDA grew by 10% compared to third quarter of 2015,
excluding the impact of divestitures. Adjusted EBITDA growth of 32%
in Lithium and 19% in Refining Solutions set the pace," said
Luke Kissam, Albemarle's president and CEO. "We also took
steps to accelerate our strategy and strengthen our lithium
franchise by entering into an agreement to acquire the spodumene
conversion assets of Jiangxi Jiangli New Materials Science and
Technology Company and entering into an agreement with Bolland
Minera, S.A. that gives us exclusive exploration and acquisition
rights to what could prove to be the largest lithium resource in
Argentina."
On June 17, 2016, the Company
entered into a definitive agreement to sell the Chemetall Surface
Treatment business to BASF SE for proceeds of approximately
$3.2 billion, subject to adjustment
with respect to certain pension liabilities, cash, working capital
and indebtedness. The sale is subject to regulatory approvals and
other customary closing conditions, and is expected to close in the
fourth quarter of 2016. In the second quarter of 2016, the Company
determined that the business qualified for discontinued operations
treatment, and as such began accounting for its assets and
liabilities as held for sale. The financial results of the disposal
group have been presented as discontinued operations in the
consolidated statements of income and excluded from segment results
for all periods presented.
On January 12, 2015, we completed
the acquisition of Rockwood Holdings, Inc. ("Rockwood"). The
results of Rockwood from January 1,
2015 to January 12, 2015
("stub period") are excluded from the year-to-date 2015 financial
results presented herein. Excluded net sales and adjusted EBITDA
for the stub period were $13.6
million and $1.1 million,
respectively.
Quarterly Segment Results
Effective January 1, 2016, our
former Performance Chemicals reportable segment was split into two
separate reportable segments: (1) Lithium and Advanced Materials,
which includes Lithium and Performance Catalyst Solutions and
Curatives ("PCS"), and (2) Bromine Specialties. For comparison
purposes, prior year periods have been reclassified to conform to
the current segments. This split did not affect the Refining
Solutions reportable segment, which is presented on the same basis
as in the prior year.
Lithium and Advanced Materials reported net sales of
$240.4 million in the third quarter
of 2016, an increase of 15.1% from third quarter 2015 net sales of
$208.8 million. Net sales were
impacted by $1.5 million of favorable
currency exchange impacts as compared to the prior year. The
remaining $30.1 million increase in
net sales was primarily due to increased lithium sales volumes and
favorable pricing impacts partially offset by lower PCS sales.
Adjusted EBITDA for Lithium and Advanced Materials was $91.7 million, an increase of 18.5% from third
quarter 2015 results of $77.4
million. Adjusted EBITDA was impacted by $1.2 million of favorable currency exchange
impacts as compared to the prior year. The remaining $13.1 million increase in adjusted EBITDA was
primarily due to higher overall sales volumes and favorable
pricing.
Bromine Specialties reported net sales of $194.5 million in the third quarter of 2016, an
increase of 2.0% from third quarter 2015 net sales of $190.7 million. Net sales were impacted by
$1.7 million of favorable currency
exchange impacts as compared to the prior year. The remaining
$2.1 million increase in net sales
was primarily due to higher sales volumes, partially offset by
unfavorable pricing impacts. Adjusted EBITDA for Bromine
Specialties was $51.8 million, a
decrease of 11.9% from third quarter 2015 results of $58.8 million. Adjusted EBITDA was impacted by
$1.3 million of favorable currency
exchange impacts as compared to the prior year. The remaining
$8.3 million decrease in adjusted
EBITDA was primarily driven by unfavorable pricing impacts
partially offset by lower raw material and utility costs, as well
as lower selling, general, and administrative expenses.
Refining Solutions reported net sales of $190.5 million in the third quarter of 2016, an
increase of 2.9% from net sales of $185.1
million in the third quarter of 2015. Net sales were
impacted by $0.5 million of
unfavorable currency exchange impacts as compared to the prior
year. The remaining $5.9 million
increase in net sales was primarily driven by higher Clean Fuels
Technology sales volumes and favorable pricing impacts, partially
offset by unfavorable Heavy Oil Upgrading volumes. Adjusted EBITDA
for Refining Solutions was $65.0
million in the third quarter of 2016, an increase of 19.2%
from third quarter 2015 results of $54.5
million. Adjusted EBITDA was impacted by $0.4 million of unfavorable currency exchange
impacts as compared to the prior year. The remaining $10.9 million increase in adjusted EBITDA was
primarily due to higher sales volumes and favorable pricing
impacts.
On January 4, 2016, we closed the
sale of the metal sulfides business, and on February 1, 2016, we closed the sale of the
minerals-based flame retardants and specialty chemicals business.
The divestiture of these businesses reduced net sales and adjusted
EBITDA for the third quarter of 2016 as compared to the prior year
period by $73.3 million and
$8.7 million, respectively.
All Other net sales were $28.3
million in the third quarter of 2016, a decrease of 72.3%
from net sales of $102.2 million in
the third quarter of 2015. Excluding the impact of the divested
businesses, All Other net sales decreased by $0.6 million compared to the prior year due to
unfavorable fine chemistry services pricing impacts, partially
offset by higher sales volumes. All Other adjusted EBITDA was
$5.5 million in the third quarter of
2016, a decrease of 12.6% from third quarter 2015 results of
$6.3 million. Excluding the impact of
the divested businesses, All Other adjusted EBITDA increased by
$7.9 million compared to the prior
year due to favorable raw material and utility prices, lower
selling, general, and administrative expenses, and higher sales
volumes, partially offset by unfavorable pricing impacts for fine
chemistry services.
In summary, total net sales of $654.0
million in the third quarter of 2016, a decrease of
$39.2 million, or 5.7%, from third
quarter 2015 net sales of $693.2
million, were negatively impacted by the divestiture of our
metal sulfides and minerals-based flame retardants and specialty
chemicals businesses, which reduced revenues versus the prior year
by $73.3 million, partially offset by
favorable currency impacts of $2.7
million. Excluding currency exchange impacts and the impact
of the divested businesses, net sales for the period increased 5.0%
as compared to the prior year. Total adjusted EBITDA of
$188.3 million in the third quarter
of 2016, an increase of $7.6 million,
or 4.2%, from third quarter 2015 adjusted EBITDA of $180.7 million, was favorably impacted by
$0.5 million currency exchange
(including $1.6 million of
unfavorable currency exchange impacts on corporate results) as well
as the divestiture of our metal sulfides and minerals-based flame
retardants and specialty chemicals business, which reduced adjusted
EBITDA versus the prior year by $8.7
million. Excluding currency exchange impacts and the
impact of the divested businesses, adjusted EBITDA for the third
quarter 2016 increased 9% as compared to the prior year.
Corporate Results
Corporate adjusted EBITDA was a loss of $25.6 million in the third quarter of 2016
compared to a loss of $16.3 million
in the third quarter of 2015. The decrease in Corporate adjusted
EBITDA was primarily due to timing of selling, general and
administrative expenses as well as increased compensation
costs.
Income Taxes
Our adjusted effective income tax rates, which exclude
non-recurring, other unusual and non-operating pension and OPEB
items, were 18.2% and 26.3% for the third quarter of 2016 and 2015,
respectively. Our effective tax rate continued to be influenced by
the level and geographic mix of income, and benefits from a
favorable mix of income in lower tax jurisdictions.
Cash Flow
Our cash flow from operations was approximately $452.4 million for the nine months ended
September 30, 2016, up 43% versus the same period in 2015. We
had $233.6 million in cash and cash
equivalents at September 30, 2016, as compared to $213.7 million at December
31, 2015. Cash on hand, cash provided by operations, net
borrowings and net proceeds from divestitures, funded $382.7 million of debt repayments, $141.3 million of capital expenditures for plant,
machinery and equipment and dividends to shareholders of
$101.1 million during the nine months
ended September 30, 2016.
Outlook
Favorable performance in Lithium and Refining Solutions
continues to drive an improved 2016 outlook for the entire company.
We now expect net sales to range between $2.6 and $2.7 billion, with adjusted EBITDA
between $725 and $745 million and
adjusted diluted earnings per share between $3.45 and $3.55, up from the prior guidance of
between $3.35 and $3.60.
Earnings Call
The Company's performance for the third quarter ended
September 30, 2016 will be discussed on a conference call at
9:00 AM Eastern time on
November 8, 2016. The call can be accessed by dialing
888-713-4215 (International Dial-In # 617-213-4867), and entering
conference ID 36152561. The Company's earnings presentation and
supporting material can be accessed through Albemarle's website under Investors at
www.albemarle.com.
About Albemarle
Albemarle Corporation (NYSE: ALB), headquartered in Charlotte, NC, is a global specialty chemicals
company with leading positions in lithium, bromine, refining
catalysts and applied surface treatments. We power the potential of
companies in many of the world's largest and most critical
industries, from energy and communications to aerospace and
electronics. Working side-by-side with our customers, we develop
value-added, customized solutions that make them more competitive.
Our solutions combine the finest technology and ingredients with
the knowledge and know-how of our highly experienced and talented
team of operators, scientists and engineers. Discovering and
implementing new and better performance-based sustainable solutions
is what motivates all of us. We think beyond business-as-usual to
drive innovations that create lasting value. Albemarle employs approximately 6,900 people
and serves customers in approximately 100 countries. We regularly
post information to www.albemarle.com, including notification of
events, news, financial performance, investor presentations and
webcasts, non-GAAP reconciliations, SEC filings and other
information regarding our company, its businesses and the markets
it serves.
Forward-Looking Statements
Some of the information presented in this press release and the
conference call and discussions that follow, including, without
limitation, statements with respect to the sale of the Chemetall
Surface Treatment business and the anticipated consequences and
benefits of the transaction, product development, changes in
productivity, market trends, price, expected growth and earnings,
input costs, surcharges, tax rates, stock repurchases, dividends,
cash flow generation, costs and cost synergies, portfolio
diversification, economic trends, 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. There can be no assurance
that actual results will not differ materially. Factors that could
cause actual results to differ materially include, without
limitation: changes in economic and business conditions; changes in
financial and operating performance of our major customers and
industries and markets served by us; the timing of orders received
from customers; the gain or loss of significant customers;
competition from other manufacturers; changes in the demand for our
products; limitations or prohibitions on the manufacture and sale
of our products; availability of raw materials; changes in the cost
of raw materials and energy; changes in our markets in general;
fluctuations in foreign currencies; changes in laws and government
regulation impacting our operations or our products; the occurrence
of regulatory proceedings, claims or litigation; the occurrence of
cybersecurity breaches, terrorist attacks, industrial accidents,
natural disasters or climate change; the inability to maintain
current levels of product or premises liability insurance or the
denial of such coverage; political unrest affecting the global
economy; political instability affecting our manufacturing
operations or joint ventures; changes in accounting standards; the
inability to achieve results from our global manufacturing cost
reduction initiatives as well as our ongoing continuous improvement
and rationalization programs; changes in the jurisdictional mix of
our earnings and changes in tax laws and rates; changes in monetary
policies, inflation or interest rates; volatility and substantial
uncertainties in the debt and equity markets; technology or
intellectual property infringement; decisions we may make in the
future; the ability to successfully execute, operate and integrate
acquisitions and divestitures, including the integration of
Rockwood's operations, and realize estimated synergies; and the
other factors detailed from time to time in the reports we file
with the SEC, including those described under "Risk Factors" in our
Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q.
These forward-looking statements speak only as of the date of this
press release. We assume no obligation to provide any revisions to
any forward-looking statements should circumstances change, except
as otherwise required by securities and other applicable laws.
Albemarle Corporation
and Subsidiaries
Consolidated
Statements of Income
(In Thousands Except
Per Share Amounts) (Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales
|
$
|
654,010
|
|
|
$
|
693,216
|
|
|
$
|
1,980,548
|
|
|
$
|
2,103,819
|
|
Cost of goods
sold(a)(b)
|
415,038
|
|
|
474,171
|
|
|
1,250,938
|
|
|
1,481,359
|
|
Gross
profit
|
238,972
|
|
|
219,045
|
|
|
729,610
|
|
|
622,460
|
|
Selling, general and
administrative expenses(a)
|
86,302
|
|
|
81,012
|
|
|
254,988
|
|
|
252,672
|
|
Research and
development expenses(b)
|
21,012
|
|
|
21,903
|
|
|
61,384
|
|
|
67,324
|
|
Restructuring and
other, net(b)
|
—
|
|
|
(6,804)
|
|
|
—
|
|
|
(6,804)
|
|
Gain on sales of
businesses, net(b)
|
—
|
|
|
—
|
|
|
(122,298)
|
|
|
—
|
|
Acquisition and
integration related costs(b)
|
6,749
|
|
|
36,514
|
|
|
44,337
|
|
|
117,171
|
|
Operating
profit
|
124,909
|
|
|
86,420
|
|
|
491,199
|
|
|
192,097
|
|
Interest and
financing expenses(b)
|
(15,946)
|
|
|
(19,294)
|
|
|
(46,860)
|
|
|
(62,193)
|
|
Other income,
net(b)
|
2,990
|
|
|
124
|
|
|
740
|
|
|
50,234
|
|
Income from
continuing operations before income taxes and equity in net income
of unconsolidated investments
|
111,953
|
|
|
67,250
|
|
|
445,079
|
|
|
180,138
|
|
Income tax
expense(b)
|
12,394
|
|
|
13,144
|
|
|
61,535
|
|
|
41,780
|
|
Income from
continuing operations before equity in net income of unconsolidated
investments
|
99,559
|
|
|
54,106
|
|
|
383,544
|
|
|
138,358
|
|
Equity in net income
of unconsolidated investments (net of tax)(b)
|
14,953
|
|
|
5,736
|
|
|
44,790
|
|
|
19,955
|
|
Net income from
continuing operations
|
114,512
|
|
|
59,842
|
|
|
428,334
|
|
|
158,313
|
|
Income (loss) from
discontinued operations (net of tax)(c)
|
23,185
|
|
|
11,030
|
|
|
(357,843)
|
|
|
19,074
|
|
Net income
|
137,697
|
|
|
70,872
|
|
|
70,491
|
|
|
177,387
|
|
Net income
attributable to noncontrolling interests
|
(9,477)
|
|
|
(5,480)
|
|
|
(28,906)
|
|
|
(16,733)
|
|
Net income
attributable to Albemarle Corporation
|
$
|
128,220
|
|
|
$
|
65,392
|
|
|
$
|
41,585
|
|
|
$
|
160,654
|
|
Basic earnings (loss)
per share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.93
|
|
|
$
|
0.48
|
|
|
$
|
3.56
|
|
|
$
|
1.28
|
|
Discontinued
operations
|
0.21
|
|
|
0.10
|
|
|
(3.19)
|
|
|
0.17
|
|
|
$
|
1.14
|
|
|
$
|
0.58
|
|
|
$
|
0.37
|
|
|
$
|
1.45
|
|
Diluted earnings
(loss) per share
|
|
|
|
|
|
|
|
Continuing
operations
|
$
|
0.93
|
|
|
$
|
0.48
|
|
|
$
|
3.53
|
|
|
$
|
1.27
|
|
Discontinued
operations
|
0.20
|
|
|
0.10
|
|
|
(3.16)
|
|
|
0.17
|
|
|
$
|
1.13
|
|
|
$
|
0.58
|
|
|
$
|
0.37
|
|
|
$
|
1.44
|
|
Weighted-average
common shares outstanding – basic
|
112,429
|
|
|
112,202
|
|
|
112,343
|
|
|
110,840
|
|
Weighted-average
common shares outstanding – diluted
|
113,448
|
|
|
112,544
|
|
|
113,131
|
|
|
111,205
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Condensed
Consolidated Balance Sheets
(In Thousands)
(Unaudited)
|
|
|
September
30,
|
|
December
31,
|
|
2016
|
|
2015
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
|
233,599
|
|
|
$
|
213,734
|
|
Other current
assets
|
1,068,527
|
|
|
975,336
|
|
Assets held for
sale
|
255,577
|
|
|
641,932
|
|
Total current
assets
|
1,557,703
|
|
|
1,831,002
|
|
Property, plant and
equipment
|
3,890,254
|
|
|
3,700,472
|
|
Less accumulated
depreciation and amortization
|
1,545,287
|
|
|
1,379,377
|
|
Net property, plant
and equipment
|
2,344,967
|
|
|
2,321,095
|
|
Noncurrent assets
held for sale
|
2,975,016
|
|
|
2,971,455
|
|
Other assets and
intangibles
|
2,519,258
|
|
|
2,474,402
|
|
Total
assets
|
$
|
9,396,944
|
|
|
$
|
9,597,954
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current portion of
long-term debt
|
$
|
400,892
|
|
|
$
|
674,994
|
|
Other current
liabilities
|
540,207
|
|
|
612,093
|
|
Liabilities held for
sale
|
135,735
|
|
|
329,598
|
|
Total current
liabilities
|
1,076,834
|
|
|
1,616,685
|
|
Long-term
debt
|
3,048,440
|
|
|
3,142,163
|
|
Noncurrent
liabilities held for sale
|
466,687
|
|
|
464,207
|
|
Other noncurrent
liabilities
|
570,280
|
|
|
588,734
|
|
Deferred income
taxes
|
783,270
|
|
|
384,852
|
|
Albemarle Corporation
shareholders' equity
|
3,299,022
|
|
|
3,254,392
|
|
Noncontrolling
interests
|
152,411
|
|
|
146,921
|
|
Total liabilities and
equity
|
$
|
9,396,944
|
|
|
$
|
9,597,954
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Selected Consolidated
Cash Flow Data
(In Thousands)
(Unaudited)
|
|
|
Nine Months
Ended
|
|
September
30,
|
|
2016
|
|
2015
|
Cash and cash
equivalents at beginning of year
|
$
|
213,734
|
|
|
$
|
2,489,768
|
|
Cash and cash
equivalents at end of period
|
$
|
233,599
|
|
|
$
|
234,490
|
|
Sources of cash
and cash equivalents:
|
|
|
|
Net income
|
$
|
70,491
|
|
|
$
|
177,387
|
|
Cash proceeds from
divestitures, net
|
310,599
|
|
|
6,133
|
|
Proceeds from
borrowings of long-term debt
|
—
|
|
|
1,000,000
|
|
Dividends received
from unconsolidated investments and nonmarketable
securities
|
34,982
|
|
|
57,149
|
|
Return of capital from
unconsolidated investment
|
—
|
|
|
98,000
|
|
Decrease in restricted
cash
|
—
|
|
|
57,550
|
|
Working capital
changes
|
—
|
|
|
14,823
|
|
Uses of cash and
cash equivalents:
|
|
|
|
Working capital
changes
|
(79,684)
|
|
|
—
|
|
Capital
expenditures
|
(141,301)
|
|
|
(164,568)
|
|
Acquisition of
Rockwood, net of cash acquired
|
—
|
|
|
(2,051,645)
|
|
Other acquisitions,
net of cash acquired
|
—
|
|
|
(48,845)
|
|
Cash payments related
to acquisitions and other
|
(81,988)
|
|
|
—
|
|
Repayments of
long-term debt
|
(382,730)
|
|
|
(1,332,293)
|
|
Repayments of other
borrowings, net
|
(9,026)
|
|
|
(16,854)
|
|
Pension and
postretirement contributions
|
(13,649)
|
|
|
(16,673)
|
|
Dividends paid to
shareholders
|
(101,061)
|
|
|
(86,770)
|
|
Dividends paid to
noncontrolling interests
|
(23,873)
|
|
|
(23,195)
|
|
Non-cash and other
items:
|
|
|
|
Depreciation and
amortization
|
176,499
|
|
|
200,372
|
|
Gain associated with
restructuring and other
|
—
|
|
|
(6,804)
|
|
Gain on sales of
businesses, net
|
(122,298)
|
|
|
—
|
|
Pension and
postretirement expense (benefit)
|
7,911
|
|
|
(232)
|
|
Deferred income
taxes
|
404,728
|
|
|
(53,593)
|
|
Equity in net income
of unconsolidated investments (net of tax)
|
(46,224)
|
|
|
(22,236)
|
|
|
See accompanying
notes to the condensed consolidated financial
information.
|
Albemarle Corporation
and Subsidiaries
Consolidated Summary
of Segment Results
(In Thousands)
(Unaudited)
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
240,424
|
|
|
$
|
208,820
|
|
|
$
|
689,950
|
|
|
$
|
620,597
|
|
Bromine
Specialties
|
194,496
|
|
|
190,716
|
|
|
597,912
|
|
|
604,267
|
|
Refining
Solutions
|
190,453
|
|
|
185,102
|
|
|
539,044
|
|
|
528,841
|
|
All Other
|
28,272
|
|
|
102,224
|
|
|
150,987
|
|
|
337,997
|
|
Corporate
|
365
|
|
|
6,354
|
|
|
2,655
|
|
|
12,117
|
|
Total net
sales
|
$
|
654,010
|
|
|
$
|
693,216
|
|
|
$
|
1,980,548
|
|
|
$
|
2,103,819
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium and Advanced
Materials
|
$
|
91,719
|
|
|
$
|
77,408
|
|
|
$
|
260,861
|
|
|
$
|
234,988
|
|
Bromine
Specialties
|
51,807
|
|
|
58,801
|
|
|
179,977
|
|
|
180,431
|
|
Refining
Solutions
|
64,960
|
|
|
54,517
|
|
|
181,620
|
|
|
144,910
|
|
All Other
|
5,470
|
|
|
6,262
|
|
|
14,810
|
|
|
29,540
|
|
Corporate(a)
|
(25,627)
|
|
|
(16,307)
|
|
|
(66,435)
|
|
|
(8,350)
|
|
Total adjusted
EBITDA
|
$
|
188,329
|
|
|
$
|
180,681
|
|
|
$
|
570,833
|
|
|
$
|
581,519
|
|
|
|
Lithium and Advanced
Materials - details by product category:
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net
sales:
|
|
|
|
|
|
|
|
Lithium
|
$
|
166,406
|
|
|
$
|
128,404
|
|
|
$
|
460,679
|
|
|
$
|
369,811
|
|
PCS
|
74,018
|
|
|
80,416
|
|
|
229,271
|
|
|
250,786
|
|
Total Lithium and
Advanced Materials
|
$
|
240,424
|
|
|
$
|
208,820
|
|
|
$
|
689,950
|
|
|
$
|
620,597
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA:
|
|
|
|
|
|
|
|
Lithium
|
$
|
68,637
|
|
|
$
|
52,110
|
|
|
$
|
196,617
|
|
|
$
|
156,333
|
|
PCS
|
23,082
|
|
|
25,298
|
|
|
64,244
|
|
|
78,655
|
|
Total Lithium and
Advanced Materials
|
$
|
91,719
|
|
|
$
|
77,408
|
|
|
$
|
260,861
|
|
|
$
|
234,988
|
|
|
See accompanying
notes to the condensed consolidated financial information and
non-GAAP reconciliations below.
|
Notes to the Condensed Consolidated Financial Information
(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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cost of goods
sold:
|
|
|
|
|
|
|
|
MTM actuarial
gain
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(0.1)
|
|
Interest cost and
expected return on assets, net
|
(0.2)
|
|
|
(0.4)
|
|
|
(0.5)
|
|
|
(1.2)
|
|
Total
|
$
|
(0.2)
|
|
|
$
|
(0.4)
|
|
|
$
|
(0.5)
|
|
|
$
|
(1.3)
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses:
|
|
|
|
|
|
|
|
Interest cost and
expected return on assets, net
|
$
|
(0.1)
|
|
|
$
|
(0.9)
|
|
|
$
|
(0.3)
|
|
|
$
|
(2.6)
|
|
Total
|
$
|
(0.1)
|
|
|
$
|
(0.9)
|
|
|
$
|
(0.3)
|
|
|
$
|
(2.6)
|
|
(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,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Utilization of
inventory markup(1)
|
$
|
—
|
|
|
$
|
0.12
|
|
|
$
|
—
|
|
|
$
|
0.58
|
|
Write-off of research
and development fixed assets(2)
|
0.01
|
|
|
—
|
|
|
0.01
|
|
|
—
|
|
Restructuring and
other, net(3)
|
—
|
|
|
(0.04)
|
|
|
—
|
|
|
(0.04)
|
|
Gain on sales of
businesses, net(4)
|
—
|
|
|
—
|
|
|
(1.02)
|
|
|
—
|
|
Acquisition and
integration related costs(5)
|
0.03
|
|
|
0.21
|
|
|
0.26
|
|
|
0.70
|
|
Gain on sales of
properties, net(6)
|
(0.01)
|
|
|
—
|
|
|
(0.01)
|
|
|
—
|
|
Interest and
financing expenses related to Rockwood
acquisition(7)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
Financing fees
related to Rockwood acquisition(8)
|
—
|
|
|
—
|
|
|
—
|
|
|
0.03
|
|
Discrete tax
items(9)
|
(0.05)
|
|
|
—
|
|
|
0.01
|
|
|
0.02
|
|
Total non-recurring
and other unusual items
|
$
|
(0.02)
|
|
|
$
|
0.29
|
|
|
$
|
(0.75)
|
|
|
$
|
1.30
|
|
(1) In connection with the acquisition of Rockwood,
the Company valued Rockwood's existing inventory at fair value as
of the acquisition date, which resulted in a markup of the
underlying net book value of the inventory. The inventory markup
was expensed over the estimated remaining selling period. For the
three months ended September 30,
2015, $7.7 million
($4.5 million after income taxes, or
$0.04 per share) was included in Cost
of goods sold, and Equity in net income of unconsolidated
investments was reduced by $9.1
million ($0.08 per share),
related to the utilization of the inventory markup. For the nine
months ended September 30, 2015,
$55.4 million ($37.5 million after income taxes, or $0.34 per share) was included in Cost of goods
sold, and Equity in net income of unconsolidated investments was
reduced by $26.9 million
($0.24 per share), 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) Included in Restructuring and other, net, for
the nine months ended September 30,
2015 is a gain of $6.8 million
($4.7 million after income taxes, or
$0.04 per share) recognized upon the
sale of land in Avonmouth, UK, which was utilized by the phosphorus
flame retardants business we exited in 2012.
(4) 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 business. 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.
(5) Acquisition and integration related costs
consisted of the following:
Three months ended September 30, 2016 -
- $6.3 million of integration costs
resulting from the acquisition of Rockwood and $0.4 million in connection with other significant
projects. After income taxes, these charges totaled $3.1 million, or $0.03 per share.
Nine months ended September 30, 2016 -
- $42.4 million of integration
costs resulting from the acquisition of Rockwood and $1.9 million in connection with other significant
projects. After income taxes, these charges totaled $29.5 million, or $0.26 per share.
Three months ended September 30, 2015 -
- $35.5 million directly related to
the acquisition of Rockwood and $1.0
million in connection with other significant projects. After
income taxes, these charges totaled $23.2
million, or $0.21 per
share.
Nine months ended September 30, 2015 -
- $111.2 million directly related
to the acquisition of Rockwood and $6.0
million in connection with other significant projects. After
income taxes, these charges totaled $79.0
million, or $0.70 per
share.
(6) Included in Other 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 Interest and financing expenses for the
nine months ended September 30, 2015
is $1.6 million ($1.1 million after income taxes, or $0.01 per share) of interest and financing
expenses associated with senior notes we issued in the fourth
quarter of 2014 in connection with the acquisition of Rockwood,
which did not close until January 12,
2015.
(8) Included in Other income, net, for the nine
months ended September 30, 2015 is
$4.4 million ($3.1 million after income taxes, or $0.03 per share) for amortization of bridge
facility fees and other financing fees related to the acquisition
of Rockwood.
(9) 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, and decreased by foreign tax rate changes and
provision to return adjustments. Included in Income tax expense for
the nine months ended September 30,
2015 is an expense of $1.9
million, or $0.02 per share,
related mainly to prior year uncertain tax position adjustments
associated with lapses in statutes of limitations and items
associated with U.S. provision to return adjustments.
(c) On June 17, 2016, the Company entered into a
definitive agreement to sell the Chemetall Surface Treatment
business to BASF SE for proceeds of approximately $3.2 billion,
subject to adjustment with respect to certain pension liabilities,
cash, working capital and indebtedness. The sale is subject to
regulatory approvals and other customary closing conditions, and is
expected to close in the fourth quarter of 2016. Income (loss) from
discontinued operations (net of tax) in the consolidated statements
of income for the nine months ended September 30, 2016 includes a
discrete non-cash charge of $381.5 million due to a change in the
Company's assertion over book and tax basis differences related to
a U.S. entity being sold, as well as a net discrete non-cash charge
of $29.8 million related to a change in the Company's assertion
over reinvestment of foreign undistributed earnings.
(d) Totals may not add due to rounding.
Additional Information
It should be noted that adjusted net income attributable to
Albemarle Corporation ("adjusted earnings"), adjusted net income
from continuing operations, adjusted diluted earnings per share
attributable to Albemarle Corporation, adjusted diluted earnings
per share from continuing operations, adjusted effective income tax
rates, EBITDA, adjusted EBITDA, EBITDA margin and adjusted EBITDA
margin are financial measures that are not required by, or
presented in accordance with, accounting principles generally
accepted in the United States, or
GAAP. These non-GAAP measures should not be considered as
alternatives to net income attributable to Albemarle Corporation
("earnings"). These measures are presented here to provide
additional useful measurements to review our operations, provide
transparency to investors and enable period-to-period comparability
of financial performance. The Company's chief operating decision
maker uses these measures to assess the ongoing performance of the
Company and its segments, as well as for business and enterprise
planning purposes.
A description of other non-GAAP financial measures that we use
to evaluate our 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 in the Investors section of our
website at www.albemarle.com, under "Non-GAAP Reconciliations"
under "Financials." Also, see below for supplemental
reconciliations of the non-GAAP financial measures to the most
directly comparable financial measures calculated and reported in
accordance with GAAP. 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
(In
Thousands)
(Unaudited)
See below for a reconciliation of adjusted net income
attributable to Albemarle Corporation ("adjusted earnings"),
adjusted net income from continuing operations, 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 earnings is defined as earnings before the non-recurring,
other unusual and non-operating pension and OPEB items as listed
below. EBITDA is defined as earnings before discontinued
operations, interest and financing expenses, income taxes, and
depreciation and amortization. Adjusted EBITDA is defined as EBITDA
and the non-recurring, other unusual and non-operating pension and
OPEB items as listed below.
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
30,
|
|
September
30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net income
attributable to Albemarle Corporation
|
$
|
128,220
|
|
|
$
|
65,392
|
|
|
$
|
41,585
|
|
|
$
|
160,654
|
|
Add back:
|
|
|
|
|
|
|
|
(Income) loss from
discontinued operations (net of tax)
|
(23,185)
|
|
|
(11,030)
|
|
|
357,843
|
|
|
(19,074)
|
|
Earnings from
continuing operations
|
105,035
|
|
|
54,362
|
|
|
399,428
|
|
|
141,580
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items from continuing operations (net of tax)
|
(154)
|
|
|
(724)
|
|
|
(260)
|
|
|
(2,428)
|
|
Non-recurring and
other unusual items from continuing operations (net of
tax)
|
(2,170)
|
|
|
31,865
|
|
|
(84,218)
|
|
|
144,970
|
|
Adjusted net income
from continuing operations
|
102,711
|
|
|
85,503
|
|
|
314,950
|
|
|
284,122
|
|
Income (loss) from
discontinued operations (net of tax)
|
23,185
|
|
|
11,030
|
|
|
(357,843)
|
|
|
19,074
|
|
Add back:
|
|
|
|
|
|
|
|
Non-operating pension
and OPEB items from discontinued operations (net of tax)
|
2,217
|
|
|
200
|
|
|
2,373
|
|
|
(1,185)
|
|
Non-recurring and
other unusual items from discontinued operations (net of
tax)
|
5,014
|
|
|
4,199
|
|
|
422,528
|
|
|
21,217
|
|
Adjusted net income
attributable to Albemarle Corporation
|
$
|
133,127
|
|
|
$
|
100,932
|
|
|
$
|
382,008
|
|
|
$
|
323,228
|
|
|
|
|
|
|
|
|
|
Adjusted diluted
earnings per share attributable to Albemarle Corporation
|
$
|
1.17
|
|
|
$
|
0.90
|
|
|
$
|
3.38
|
|
|
$
|
2.91
|
|
|
|
|
|
|
|
|
|
Weighted-average
common shares outstanding – diluted
|
113,448
|
|
|
112,544
|
|
|
113,131
|
|
|
111,205
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
128,220
|
|
|
$
|
65,392
|
|
|
$
|
41,585
|
|
|
$
|
160,654
|
|
Add back:
|
|
|
|
|
|
|
|
(Income) loss from
discontinued operations (net of tax)
|
(23,185)
|
|
|
(11,030)
|
|
|
357,843
|
|
|
(19,074)
|
|
Interest and financing
expenses
|
15,946
|
|
|
19,294
|
|
|
46,860
|
|
|
62,193
|
|
Income tax
expense
|
12,394
|
|
|
13,144
|
|
|
61,535
|
|
|
41,780
|
|
Depreciation and
amortization
|
47,974
|
|
|
48,643
|
|
|
141,288
|
|
|
142,805
|
|
EBITDA
|
181,349
|
|
|
135,443
|
|
|
649,111
|
|
|
388,358
|
|
Non-operating pension
and OPEB items
|
(231)
|
|
|
(1,306)
|
|
|
(779)
|
|
|
(3,915)
|
|
Non-recurring and
other unusual items (excluding items associated with interest
expense)
|
7,211
|
|
|
46,544
|
|
|
(77,499)
|
|
|
197,076
|
|
Adjusted
EBITDA
|
$
|
188,329
|
|
|
$
|
180,681
|
|
|
$
|
570,833
|
|
|
$
|
581,519
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
654,010
|
|
|
$
|
693,216
|
|
|
$
|
1,980,548
|
|
|
$
|
2,103,819
|
|
EBITDA
margin
|
27.7
|
%
|
|
19.5
|
%
|
|
32.8
|
%
|
|
18.5
|
%
|
Adjusted EBITDA
margin
|
28.8
|
%
|
|
26.1
|
%
|
|
28.8
|
%
|
|
27.6
|
%
|
|
See below for a reconciliation of adjusted EBITDA on a segment
basis, the non-GAAP financial measure, to Net income (loss)
attributable to Albemarle Corporation, the most directly comparable
financial measure calculated and reporting in accordance with
GAAP.
|
Lithium and
Advanced
Materials
|
|
Bromine
Specialties
|
|
Refining
Solutions
|
|
Reportable
Segments
Total
|
|
All
Other
|
|
Corporate
|
|
Consolidated
Total
|
|
% of
Net
Sales
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
38,498
|
|
|
$
|
49,395
|
|
|
$
|
45,713
|
|
|
$
|
133,606
|
|
|
$
|
617
|
|
|
$
|
(68,831)
|
|
|
$
|
65,392
|
|
|
9.4
|
%
|
Depreciation and
amortization
|
22,076
|
|
|
9,406
|
|
|
8,804
|
|
|
40,286
|
|
|
5,645
|
|
|
2,712
|
|
|
48,643
|
|
|
7.0
|
%
|
Non-recurring and
other unusual items
|
16,834
|
|
|
—
|
|
|
—
|
|
|
16,834
|
|
|
—
|
|
|
29,710
|
|
|
46,544
|
|
|
6.7
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,294
|
|
|
19,294
|
|
|
2.8
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,144
|
|
|
13,144
|
|
|
1.9
|
%
|
Income from
discontinued operations (net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,030)
|
|
|
(11,030)
|
|
|
(1.6)
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,306)
|
|
|
(1,306)
|
|
|
(0.2)
|
%
|
Adjusted
EBITDA
|
$
|
77,408
|
|
|
$
|
58,801
|
|
|
$
|
54,517
|
|
|
$
|
190,726
|
|
|
$
|
6,262
|
|
|
$
|
(16,307)
|
|
|
$
|
180,681
|
|
|
26.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Albemarle Corporation
|
$
|
88,219
|
|
|
$
|
154,353
|
|
|
$
|
119,513
|
|
|
$
|
362,085
|
|
|
$
|
9,644
|
|
|
$
|
(211,075)
|
|
|
$
|
160,654
|
|
|
7.6
|
%
|
Depreciation and
amortization
|
67,530
|
|
|
26,078
|
|
|
25,397
|
|
|
119,005
|
|
|
16,867
|
|
|
6,933
|
|
|
142,805
|
|
|
6.8
|
%
|
Non-recurring and
other unusual items (excluding items associated with interest
expense)
|
79,239
|
|
|
—
|
|
|
—
|
|
|
79,239
|
|
|
3,029
|
|
|
114,808
|
|
|
197,076
|
|
|
9.4
|
%
|
Interest and
financing expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
62,193
|
|
|
62,193
|
|
|
3.0
|
%
|
Income tax
expense
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,780
|
|
|
41,780
|
|
|
2.0
|
%
|
Income from
discontinued operations (net of tax)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,074)
|
|
|
(19,074)
|
|
|
(0.9)
|
%
|
Non-operating pension
and OPEB items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,915)
|
|
|
(3,915)
|
|
|
(0.2)
|
%
|
Adjusted
EBITDA
|
$
|
234,988
|
|
|
$
|
180,431
|
|
|
$
|
144,910
|
|
|
$
|
560,329
|
|
|
$
|
29,540
|
|
|
$
|
(8,350)
|
|
|
$
|
581,519
|
|
|
27.6
|
%
|
|
Lithium
|
|
PCS
|
|
Total
Lithium
and
Advanced
Materials
|
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
|
|
|
|
|
|
|
|
Three months ended
September 30, 2015:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
16,507
|
|
|
$
|
21,991
|
|
|
$
|
38,498
|
|
Depreciation and
amortization
|
18,769
|
|
|
3,307
|
|
|
22,076
|
|
Non-recurring and
other unusual items
|
16,834
|
|
|
—
|
|
|
16,834
|
|
Adjusted
EBITDA
|
$
|
52,110
|
|
|
$
|
25,298
|
|
|
$
|
77,408
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
Nine months ended
September 30, 2015:
|
|
|
|
|
|
Net income
attributable to Albemarle Corporation
|
$
|
20,222
|
|
|
$
|
67,997
|
|
|
$
|
88,219
|
|
Depreciation and
amortization
|
56,872
|
|
|
10,658
|
|
|
67,530
|
|
Non-recurring and
other unusual items
|
79,239
|
|
|
—
|
|
|
79,239
|
|
Adjusted
EBITDA
|
$
|
156,333
|
|
|
$
|
78,655
|
|
|
$
|
234,988
|
|
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 reporting in accordance with GAAP.
|
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, 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
|
%
|
|
|
|
|
|
|
Three months ended
September 30, 2015:
|
|
|
|
|
|
As
reported
|
$
|
67,250
|
|
|
$
|
13,144
|
|
|
19.5
|
%
|
Non-recurring, other
unusual and non-operating pension and OPEB items from continuing
operations
|
36,156
|
|
|
14,097
|
|
|
|
As
adjusted
|
$
|
103,406
|
|
|
$
|
27,241
|
|
|
26.3
|
%
|
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SOURCE Albemarle Corporation