CHARLOTTE, N.C. , Nov. 7, 2018 /PRNewswire/ --, Third quarter 2018 highlights:, Third quarter net sales were $777.7 million , an increase of 3% over the prior year; earnings were $129.7 million , or $1.20 per diluted share, an increase of 13% over the prior year Third quarter adjusted EBITDA was $235.1 million , an increase of 12% over the prior year; adjusted diluted earnings per share was $1.31 , an increase of 21% over the prior year Completed our May 2018…, Three Months Ended, Nine Months Ended, September 30,, September 30,, In thousands, except per share amounts, 2018, 2017, 2018, 2017, Net sales $ 777,748 $ 754,866 $ 2,453,251 $ 2,214,187 Net income attributable to Albemarle Corporation $ 129,745 $ 118,670 $ 563,966 $ 273,216 Adjusted EBITDA $ 235,082 $ 209,383 $ 742,362 $ 639,700 Diluted earnings per share $ 1.20 $ 1.06 $ 5.11 $ 2.43 Non-operating pension and OPEB items (a) (0.02) (0.01) (0.05) (0.02) Non-recurring and other unusual item (a) 0.13 0.02 (1.10) 0.84…, Outlook, Based on our strong performance throughout the year, we are confirming our previous guidance, as follows:, 2018 Outlook, vs Full Year 2017, Net sales $3.3 - $3.5 billion 7% - 14% Adjusted EBITDA $990 - $1,020 million 12% - 15% Adjusted EPS (per diluted share) $5.30 - $5.50 15% - 20%, Results, Third quarter 2018 earnings were $129.7 million , or $1.20 per diluted share, compared to $118.7 million , or $1.06 per diluted share in the third quarter 2017. The increase in 2018 was primarily driven by earnings growth in our Bromine Specialties and Catalysts reportable segments and lower costs in Corporate, in addition to strong performance in our fine chemistry solutions business. Third…, Quarterly Segment Results, During 2018, the PCS product category merged with the Refining Solutions reportable segment to form a global business focused on catalysts. As a result, our three reportable segments include: (1) Lithium; (2) Bromine Specialties; and (3) Catalysts. For comparison purposes, prior year periods have been reclassified to conform to the current presentation. Lithium reported net sales of $270.9…, Corporate Results, Corporate adjusted EBITDA was a charge of $23.7 million in the third quarter of 2018 compared to a charge of $28.2 million in the third quarter of 2017. The improvement in Corporate adjusted EBITDA was primarily due to lower selling, general and administrative spend, partially offset by $3.5 million of unfavorable currency exchange impacts., Income Taxes, In December 2017 , the Tax Cuts and Jobs Act ("TCJA") was enacted, requiring companies, among other things, to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and reducing the U.S. federal corporate income tax rate from 35% to 21%. The SEC staff issued SAB 118, which will allow us to record provisional amounts during a measurement period…, Cash Flow, Our cash from operations was approximately $376.9 million for the nine months ended September 30, 2018, an increase of $302.1 million versus the same period in 2017, primarily due to changes in working capital, including the payment of approximately $255 million in taxes related to the sale of the Chemetall Surface Treatment business in 2017, as well as increased earnings in each of our…, Earnings Call, The Company's performance for the third quarter ended September 30, 2018 will be discussed on a conference call at 9:00 AM Eastern time on November 8, 2018. The call can be accessed by dialing 800-230-3019 (International Dial-In # 617-597-5413), and entering conference ID 98486204. The Company's earnings presentation and supporting material can be accessed through Albemarle's website under…, 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 and refining catalysts. We power the potential of companies in many of the world's largest and most critical industries, from energy and communications to transportation and electronics. Working side-by-side with our customers, we develop value-…, Forward-Looking Statements, Some of the information presented in this press release, the conference call and discussions that follow, including, without limitation, information related to product development, production capacity, committed volumes, market trends, pricing, expected growth, earnings and demand for our products, input costs, surcharges, tax rates, stock repurchases, dividends, cash flow generation, costs and…, Three Months Ended, Nine Months Ended, September 30,, September 30,, 2018, 2017, 2018, 2017, Net sales, $ 777,748 $ 754,866 $ 2,453,251 $ 2,214,187 Cost of goods sold 497,211 479,210 1,556,379 1,411,614, Gross profit, 280,537 275,656 896,872 802,573 Selling, general and administrative expenses 100,167 106,471 325,174 331,984 Research and development expenses 16,610 21,763 53,670 63,423 Gain on sale of business — — (218,705) —, Operating profit, 163,760 147,422 736,733 407,166 Interest and financing expenses (12,988) (15,792) (39,834) (98,895) Other income (expenses), net 3,793 (1,986) (31,906) (3,399) Income before income taxes and equity in net income of unconsolidated investments 154,565 129,644 664,993 304,872 Income tax expense 33,167 18,495 133,630 53,596 Income before equity in net income of unconsolidated investments 121,398 111,…, September 30,, December 31,, 2018, 2017, ASSETS, Cash and cash equivalents $ 641,226 $ 1,137,303 Other current assets 1,418,351 1,301,108 Assets held for sale — 39,152 Total current assets 2,059,577 2,477,563 Property, plant and equipment 4,571,779 4,124,335 Less accumulated depreciation and amortization 1,746,414 1,631,025 Net property, plant and equipment 2,825,365 2,493,310 Noncurrent assets held for sale — 139,813 Other assets and…, LIABILITIES AND EQUITY, Current portion of long-term debt $ 286,188 $ 422,012 Other current liabilities 840,821 776,975 Liabilities held for sale — 1,938 Total current liabilities 1,127,009 1,200,925 Long-term debt 1,411,605 1,415,360 Noncurrent liabilities held for sale — 614 Other noncurrent liabilities 883,820 945,788 Deferred income taxes 378,484 370,389 Albemarle Corporation shareholders' equity 3,528,844 3,674,549…, Nine Months Ended, September 30,, 2018, 2017, Cash and cash equivalents at beginning of year $ 1,137,303 $ 2,269,756 Cash and cash equivalents at end of period $ 641,226 $ 1,045,339, Sources of cash and cash equivalents:, Net income $ 593,090 $ 306,539 Cash proceeds from divestitures, net 413,479 6,857 Proceeds from borrowings of long-term debt — 27,000 Other borrowings, net — 79,203 Dividends received from unconsolidated investments and nonmarketable securities 32,794 11,900 Proceeds from exercise of stock options 2,302 7,011, Uses of cash and cash equivalents:, Working capital changes (131,813) (398,913) Capital expenditures (471,675) (187,519) Acquisitions, net of cash acquired (11,403) (45,406) Repayments of long-term debt — (753,209) Repurchases of common stock (500,000) (250,000) Repayments of other borrowings, net (134,505) — Pension and postretirement contributions (11,068) (9,607) Dividends paid to shareholders (108,922) (105,205) Fees related to…, Non-cash and other items:, Depreciation and amortization 150,511 144,087 Gain on sale of business (218,705) — Gain on acquisition — (6,025) Pension and postretirement (benefit) expense (2,708) 67 Loss on early extinguishment of debt — 52,801 Deferred income taxes 43,400 4,677 Equity in net income of unconsolidated investments (net of tax) (61,727) (55,263) See accompanying notes to the condensed consolidated financial…, Three Months Ended, Nine Months Ended, September 30,, September 30,, 2018, 2017, 2018, 2017, Net sales:, Lithium $ 270,928 $ 269,238 $ 886,523 $ 729,288 Bromine Specialties 232,616 212,923 678,769 636,059 Catalysts 251,139 244,594 796,822 756,407 All Other 23,065 28,021 90,978 91,144 Corporate — 90 159 1,289 Total net sales $ 777,748 $ 754,866 $ 2,453,251 $ 2,214,187, Adjusted EBITDA:, Lithium $ 113,629 $ 112,944 $ 386,260 $ 327,996 Bromine Specialties 78,585 63,936 217,921 194,499 Catalysts 62,602 60,394 205,534 197,570 All Other 3,968 306 7,729 7,906 Corporate (23,702) (28,197) (75,082) (88,271) Total adjusted EBITDA $ 235,082 $ 209,383 $ 742,362 $ 639,700 See accompanying non-GAAP reconciliations below., Additional Information, It should be noted that adjusted net income attributable to Albemarle Corporation , adjusted diluted earnings per share, non-operating pension and OPEB items per diluted share, non-recurring and other unusual items per diluted share, adjusted effective income tax rates, EBITDA, adjusted EBITDA, EBITDA margin and adjusted EBITDA margin are financial measures that are not required by, or presented…, www.albemarle.com ., 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…, ALBEMARLE CORPORATION AND SUBSIDIARIES, Non-GAAP Reconciliations, (Unaudited), See below for a reconciliation of adjusted net income attributable to Albemarle Corporation , 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…, Three Months Ended, Nine Months Ended, September 30,, September 30,, In thousands, except percentages and per share amounts, 2018, 2017, 2018, 2017, Net income attributable to Albemarle Corporation $ 129,745 $ 118,670 $ 563,966 $ 273,216 Add back: Non-operating pension and OPEB items (net of tax) (1,856) (694) (5,595) (2,093) Non-recurring and other unusual items (net of tax) 13,568 2,575 (121,731) 94,918 Adjusted net income attributable to Albemarle Corporation $ 141,457 $ 120,551 $ 436,640 $ 366,041 Adjusted diluted earnings per share $ 1.…, EBITDA, 225,607 202,852 887,941 569,794 Non-operating pension and OPEB items (2,195) (1,028) (6,596) (3,144) Non-recurring and other unusual items (excluding items associated with interest expense) 11,670 7,559 (138,983) 73,050, Adjusted EBITDA, $ 235,082 $ 209,383 $ 742,362 $ 639,700 Net sales $ 777,748 $ 754,866 $ 2,453,251 $ 2,214,187 EBITDA margin 29.0 % 26.9 % 36.2 % 25.7 % Adjusted EBITDA margin 30.2 % 27.7 % 30.3 % 28.9 % See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, to Net income attributable to Albemarle Corporation , the most directly comparable financial measure…, Lithium, Bromine Specialties, Catalysts, Reportable Segments Total, All Other, Corporate, Consolidated Total, % of Net Sales, Three months ended September 30, 2018:, Net income (loss) attributable to Albemarle Corporation $ 90,313 $ 67,967 $ 50,491 $ 208,771 $ 1,978 $ (81,004) $ 129,745 16.7 % Depreciation and amortization 23,370 10,618 12,111 46,099 1,990 1,618 49,707 6.4 % Non-recurring and other unusual items (54) — — (54) — 11,724 11,670 1.5 % Interest and financing expenses — — — — — 12,988 12,988 1.7 % Income tax expense — — — — — 33,167 33,167 4.2 %…, Adjusted EBITDA, $ 113,629 $ 78,585 $ 62,602 $ 254,816 $ 3,968 $ (23,702) $ 235,082 30.2 %, Three months ended September 30, 2017:, Net income (loss) attributable to Albemarle Corporation $ 89,745 $ 53,760 $ 47,846 $ 191,351 $ (1,776) $ (70,905) $ 118,670 15.7 % Depreciation and amortization 22,316 10,176 13,798 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.…, Adjusted EBITDA, $ 112,944 $ 63,936 $ 60,394 $ 237,274 $ 306 $ (28,197) $ 209,383 27.7 %, Nine months ended September 30, 2018:, Net income (loss) attributable to Albemarle Corporation $ 315,939 $ 187,176 $ 387,038 $ 890,153 $ 1,659 $ (327,846) $ 563,966 23.0 % Depreciation and amortization 71,760 30,745 37,201 139,706 6,070 4,735 150,511 6.2 % Non-recurring and other unusual items (1,439) — (218,705) (220,144) — 81,161 (138,983) (5.7) % Interest and financing expenses — — — — — 39,834 39,834 1.6 % Income tax expense…, Adjusted EBITDA, $ 386,260 $ 217,921 $ 205,534 $ 809,715 $ 7,729 $ (75,082) $ 742,362 30.3 %, Nine months ended September 30, 2017:, Net income (loss) attributable to Albemarle Corporation $ 249,178 $ 164,193 $ 158,806 $ 572,177 $ 1,622 $ (300,583) $ 273,216 12.3 % Depreciation and amortization 62,841 30,306 40,014 133,161 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,…, Adjusted EBITDA, $ 327,996 $ 194,499 $ 197,570 $ 720,065 $ 7,906 $ (88,271) $ 639,700 28.9 % 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 operating segments and are included in the Corporate category. In addition, we believe that these components of pension cost are mainly driven by…, Three Months Ended, Nine Months Ended, September 30,, September 30,, 2018, 2017, 2018, 2017, Interest cost $ 8,509 $ 8,960 $ 25,636 $ 26,738 Expected return on assets (10,704) (9,988) (32,232) (29,882) Total $ (2,195) $ (1,028) $ (6,596) $ (3,144) In addition to the non-operating pension and OPEB items disclosed above, we have identified certain other items and excluded them from our adjusted net income calculation for the periods presented. A listing of these items, as well as a…, Three Months Ended, Nine Months Ended, September 30,, September 30,, 2018, 2017, 2018, 2017, Utilization of inventory markup (1) $ — $ — $ — $ 0.16 Restructuring and other (2) 0.04 — 0.04 0.11 Acquisition and integration related costs (3) 0.03 0.02 0.10 0.18 Albemarle Foundation contribution (4) — — 0.10 — Gain on sale of business (5) — — (1.60) — Gain on acquisition (6) — 0.01 — (0.05) Legal accrual (7) 0.02 — 0.21 — Loss on extinguishment of debt (8) — — — 0.34 Multiemployer plan…, 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 (3) Acquisition and integration related costs for the three and nine months ended September 30, 2018 and 2017 related to various significant projects…, Three Months Ended, Nine Months Ended, September 30,, September 30,, 2018, 2017, 2018, 2017, Acquisition and integration related costs:, Cost of goods sold $ 0.9 $ 1.8 $ 2.9 $ 12.5 Selling, general and administrative expenses 3.4 3.8 10.2 13.9 Total $ 4.3 $ 5.6 $ 13.1 $ 26.4 Total acquisition and integration related costs, after income taxes $ 3.5 $ 2.6 $ 10.7 $ 20.1 Total acquisition and integration related costs, per diluted share $ 0.03 $ 0.02 $ 0.10 $ 0.18 (4) Included in Selling, general and administrative expenses for the…, Income before income taxes and equity in net income of unconsolidated investments, Income tax expense, Effective income tax rate, Three months ended September 30, 2018:, As reported $ 154,565 $ 33,167 21.5 % Non-recurring, other unusual and non-operating pension and OPEB items 9,475 (2,237) As adjusted $ 164,040 $ 30,930 18.9 %, 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 6,531 4,650 As adjusted $ 136,175 $ 23,145 17.0 %, Nine months ended September 30, 2018:, As reported $ 664,993 $ 133,630 20.1 % Non-recurring, other unusual and non-operating pension and OPEB items (145,579) (18,253) As adjusted $ 519,414 $ 115,377 22.2 %, 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 122,707 29,882 As adjusted $ 427,579 $ 83,478 19.5 % View original content to download multimedia: http://www.prnewswire.com/news-releases/albemarle-delivers-revenue-growth-for-the-11th-consecutive-quarter-300745962.html SOURCE Albemarle Corporation Dave Ryan, 980.299.5641
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