Exhibit 99.1
Albemarle Corporation and Subsidiaries
Consolidated Summary of Segment Results
(In Thousands) (Unaudited)
The Company’s chief operating decision maker uses earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items such as acquisition and integration related costs, utilization of inventory markup, gains or losses on sales of businesses, restructuring charges, facility divestiture charges, non-operating pension and OPEB items and other significant non-recurring items (“adjusted EBITDA”), in a balanced manner and on a segment basis to assess the ongoing performance of the Company’s business segments and to allocate resources. In addition, management uses adjusted EBITDA for business planning purposes and as a significant component in the calculation of performance-based compensation for management and other employees. The Company has reported adjusted EBITDA because management believes it provides transparency to investors and enables period-to-period comparability of financial performance. Adjusted EBITDA is a financial measure that is not required by, or presented in accordance with, U.S. GAAP. Adjusted EBITDA should not be considered as an alternative to Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reported in accordance with U.S. GAAP, or any other financial measure reported in accordance with U.S. GAAP.
|
| | | | | | | | | | | | | | | | | | | |
| Three months ended | | Year ended |
| March 31, 2017 | | June 30, 2017 | | September 30, 2017 | | December 31, 2017 | | December 31, 2017 |
Net sales: | | | | | | | | | |
Lithium | $ | 216,229 |
| | $ | 243,821 |
| | $ | 269,238 |
| | $ | 289,597 |
| | $ | 1,018,885 |
|
Bromine Specialties | 219,191 |
| | 203,945 |
| | 212,923 |
| | 219,084 |
| | 855,143 |
|
Catalysts | 253,558 |
| | 258,255 |
| | 244,594 |
| | 311,165 |
| | 1,067,572 |
|
All Other | 32,419 |
| | 30,704 |
| | 28,021 |
| | 37,770 |
| | 128,914 |
|
Corporate | 666 |
| | 533 |
| | 90 |
| | 173 |
| | 1,462 |
|
Total net sales | $ | 722,063 |
| | $ | 737,258 |
|
| $ | 754,866 |
|
| $ | 857,789 |
|
| $ | 3,071,976 |
|
| | | | | | | | | |
Adjusted EBITDA: | | | | | | | | | |
Lithium | $ | 99,852 |
| | $ | 115,200 |
| | $ | 112,944 |
| | $ | 118,656 |
| | $ | 446,652 |
|
Bromine Specialties | 68,488 |
| | 62,075 |
| | 63,936 |
| | 64,402 |
| | 258,901 |
|
Catalysts | 69,749 |
| | 67,427 |
| | 60,394 |
| | 86,313 |
| | 283,883 |
|
All Other | 5,156 |
| | 2,444 |
| | 306 |
| | 5,972 |
| | 13,878 |
|
Corporate | (31,869 | ) | | (28,205 | ) | | (28,197 | ) | | (29,563 | ) | | (117,834 | ) |
Total adjusted EBITDA | $ | 211,376 |
| | $ | 218,941 |
|
| $ | 209,383 |
|
| $ | 245,780 |
|
| $ | 885,480 |
|
|
| | | | | | | | | | | | | | | | | | | |
| Three months ended | | Year ended |
| March 31, 2016 | | June 30, 2016 | | September 30, 2016 | | December 31, 2016 | | December 31, 2016 |
Net sales: | | | | | | | | | |
Lithium | $ | 136,560 |
| | $ | 157,713 |
| | $ | 166,406 |
| | $ | 208,173 |
| | $ | 668,852 |
|
Bromine Specialties | 196,553 |
| | 206,863 |
| | 194,496 |
| | 194,513 |
| | 792,425 |
|
Catalysts | 250,192 |
| | 253,652 |
| | 264,471 |
| | 263,186 |
| | 1,031,501 |
|
All Other | 72,089 |
| | 50,626 |
| | 28,272 |
| | 30,001 |
| | 180,988 |
|
Corporate | 1,817 |
| | 473 |
| | 365 |
| | 782 |
| | 3,437 |
|
Total net sales | $ | 657,211 |
| | $ | 669,327 |
|
| $ | 654,010 |
|
| $ | 696,655 |
|
| $ | 2,677,203 |
|
| | | | | | | | | |
Adjusted EBITDA: | | | | | | | | | |
Lithium | $ | 63,834 |
| | $ | 64,146 |
| | $ | 68,637 |
| | $ | 89,097 |
| | $ | 285,714 |
|
Bromine Specialties | 61,608 |
| | 66,562 |
| | 51,807 |
| | 46,949 |
| | 226,926 |
|
Catalysts | 77,714 |
| | 80,108 |
| | 88,042 |
| | 70,745 |
| | 316,609 |
|
All Other | 8,464 |
| | 876 |
| | 5,470 |
| | (38 | ) | | 14,772 |
|
Corporate | (19,587 | ) | | (21,221 | ) | | (25,627 | ) | | (19,369 | ) | | (85,804 | ) |
Total adjusted EBITDA | $ | 192,033 |
| | $ | 190,471 |
|
| $ | 188,329 |
|
| $ | 187,384 |
|
| $ | 758,217 |
|
See below for a reconciliation of adjusted EBITDA on a segment basis, the non-GAAP financial measure, from Net income attributable to Albemarle Corporation, the most directly comparable financial measure calculated and reporting in accordance with U.S. GAAP. For additional explanation of the adjustments from Net income attributable to Albemarle Corporation to adjusted EBITDA, see the Company’s previously furnished on Form 8-K, under Item 2.02, for the periods presented.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lithium | | Bromine Specialties | | Catalysts | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total |
Three months ended March 31, 2017: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 77,614 |
| | $ | 58,694 |
| | $ | 56,966 |
| | $ | 193,274 |
| | $ | 3,246 |
| | $ | (145,307 | ) | | $ | 51,213 |
|
Depreciation and amortization | 19,065 |
| | 9,794 |
| | 12,783 |
| | 41,642 |
| | $ | 1,910 |
| | 1,518 |
| | 45,070 |
|
Utilization of inventory markup | 10,606 |
| | — |
| | — |
| | 10,606 |
| | — |
| | — |
| | 10,606 |
|
Restructuring and other | — |
| | — |
| | — |
| | — |
| | — |
| | 12,905 |
| | 12,905 |
|
Gain on acquisition | (7,433 | ) | | — |
| | — |
| | (7,433 | ) | | — |
| | — |
| | (7,433 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 14,281 |
| | 14,281 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 68,513 |
| | 68,513 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 11,971 |
| | 11,971 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (1,063 | ) | | (1,063 | ) |
Other | — |
| | — |
| | — |
| | — |
| | — |
| | 5,313 |
| | 5,313 |
|
Adjusted EBITDA | $ | 99,852 |
|
| $ | 68,488 |
|
| $ | 69,749 |
|
| $ | 238,089 |
|
| $ | 5,156 |
|
| $ | (31,869 | ) |
| $ | 211,376 |
|
| | | | | | | | | | | | | |
Three months ended March 31, 2016: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 44,346 |
| | $ | 51,853 |
| | $ | 65,295 |
| | $ | 161,494 |
| | $ | 130,709 |
| | $ | (64,017 | ) | | $ | 228,186 |
|
Depreciation and amortization | 19,488 |
| | 9,755 |
| | 12,419 |
| | 41,662 |
| | 612 |
| | 1,335 |
| | 43,609 |
|
(Gain) loss on sales of businesses, net | — |
| | — |
| | — |
| | — |
| | (122,857 | ) | | 1,533 |
| | (121,324 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 18,558 |
| | 18,558 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 15,114 |
| | 15,114 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 25,485 |
| | 25,485 |
|
Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (17,312 | ) | | (17,312 | ) |
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (283 | ) | | (283 | ) |
Adjusted EBITDA | $ | 63,834 |
|
| $ | 61,608 |
|
| $ | 77,714 |
|
| $ | 203,156 |
|
| $ | 8,464 |
|
| $ | (19,587 | ) |
| $ | 192,033 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lithium | | Bromine Specialties | | Catalysts | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total |
Three months ended June 30, 2017: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 81,819 |
| | $ | 51,739 |
| | $ | 53,994 |
| | $ | 187,552 |
| | $ | 152 |
| | $ | (84,371 | ) | | $ | 103,333 |
|
Depreciation and amortization | 21,460 |
| | 10,336 |
| | 13,433 |
| | 45,229 |
| | $ | 2,292 |
| | 1,601 |
| | 49,122 |
|
Utilization of inventory markup | 11,921 |
| | — |
| | — |
| | 11,921 |
| | — |
| | — |
| | 11,921 |
|
Restructuring and other | — |
| | — |
| | — |
| | — |
| | — |
| | 4,235 |
| | 4,235 |
|
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 6,479 |
| | 6,479 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 14,590 |
| | 14,590 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 23,130 |
| | 23,130 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (1,053 | ) | | (1,053 | ) |
Multiemployer plan shortfall contributions | — |
| | — |
| | — |
| | — |
| | — |
| | 4,940 |
| | 4,940 |
|
Other | — |
| | — |
| | — |
| | — |
| | — |
| | 2,244 |
| | 2,244 |
|
Adjusted EBITDA | $ | 115,200 |
| | $ | 62,075 |
| | $ | 67,427 |
| | $ | 244,702 |
| | $ | 2,444 |
| | $ | (28,205 | ) | | $ | 218,941 |
|
| | | | | | | | | | | | | |
Three months ended June 30, 2016: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 42,129 |
| | $ | 56,747 |
| | $ | 67,223 |
| | $ | 166,099 |
| | $ | (1,503 | ) | | $ | (479,417 | ) | | $ | (314,821 | ) |
Depreciation and amortization | 22,017 |
| | 9,815 |
| | 12,885 |
| | 44,717 |
| | 3,353 |
| | 1,635 |
| | 49,705 |
|
(Gain) loss on sales of businesses, net | — |
| | — |
| | — |
| | — |
| | (974 | ) | | — |
| | (974 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 19,030 |
| | 19,030 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 15,800 |
| | 15,800 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 23,656 |
| | 23,656 |
|
Loss from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | 398,340 |
| | 398,340 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (265 | ) | | (265 | ) |
Adjusted EBITDA | $ | 64,146 |
| | $ | 66,562 |
| | $ | 80,108 |
| | $ | 210,816 |
| | $ | 876 |
| | $ | (21,221 | ) | | $ | 190,471 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lithium | | Bromine Specialties | | Catalysts | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total |
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 |
|
Depreciation and amortization | 22,316 |
| | 10,176 |
| | 13,798 |
| | 46,290 |
| | 2,082 |
| | 1,523 |
| | 49,895 |
|
Utilization of inventory markup | 568 |
| | — |
| | — |
| | 568 |
| | — |
| | — |
| | 568 |
|
Gain on acquisition | 1,408 |
| | — |
| | — |
| | 1,408 |
| | — |
| | — |
| | 1,408 |
|
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 5,635 |
| | 5,635 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 15,792 |
| | 15,792 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 18,495 |
| | 18,495 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (1,028 | ) | | (1,028 | ) |
Multiemployer plan shortfall contributions | — |
| | — |
| | — |
| | — |
| | — |
| | 1,646 |
| | 1,646 |
|
Other | (1,093 | ) | | — |
| | (1,250 | ) | | (2,343 | ) | | — |
| | 645 |
| | (1,698 | ) |
Adjusted EBITDA | $ | 112,944 |
| | $ | 63,936 |
| | $ | 60,394 |
| | $ | 237,274 |
| | $ | 306 |
| | $ | (28,197 | ) | | $ | 209,383 |
|
| | | | | | | | | | | | | |
Three months ended September 30, 2016: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 46,848 |
| | $ | 41,621 |
| | $ | 75,299 |
| | $ | 163,768 |
| | $ | 3,806 |
| | $ | (39,354 | ) | | $ | 128,220 |
|
Depreciation and amortization | 21,789 |
| | 10,186 |
| | 12,743 |
| | 44,718 |
| | 1,664 |
| | 1,592 |
| | 47,974 |
|
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 6,749 |
| | 6,749 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 15,946 |
| | 15,946 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 12,394 |
| | 12,394 |
|
Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (23,185 | ) | | (23,185 | ) |
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (231 | ) | | (231 | ) |
Other | — |
| | — |
| | — |
| | | | — |
| | 462 |
| | 462 |
|
Adjusted EBITDA | $ | 68,637 |
| | $ | 51,807 |
| | $ | 88,042 |
| | $ | 208,486 |
| | $ | 5,470 |
| | $ | (25,627 | ) | | $ | 188,329 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lithium | | Bromine Specialties | | Catalysts | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total |
Three months ended December 31, 2017: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 93,814 |
| | $ | 54,646 |
| | $ | 71,859 |
| | $ | 220,319 |
| | $ | 3,899 |
| | $ | (442,584 | ) | | $ | (218,366 | ) |
Depreciation and amortization | 25,038 |
| | 9,756 |
| | 14,454 |
| | 49,248 |
| | 2,073 |
| | 1,520 |
| | 52,841 |
|
Restructuring and other | — |
| | — |
| | — |
| | — |
| | — |
| | (85 | ) | | (85 | ) |
Gain on acquisition | (196 | ) | | — |
| | — |
| | (196 | ) | | — |
| | — |
| | (196 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 7,559 |
| | 7,559 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 16,455 |
| | 16,455 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 378,221 |
| | 378,221 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (12,981 | ) | | (12,981 | ) |
Multiemployer plan shortfall contributions | — |
| | — |
| | — |
| | — |
| | — |
| | 1,301 |
| | 1,301 |
|
Note receivable reserve | — |
| | — |
| | — |
| | — |
| | — |
| | 28,730 |
| | 28,730 |
|
Other | — |
| | — |
| | — |
| | — |
| | — |
| | (7,699 | ) | | (7,699 | ) |
Adjusted EBITDA | $ | 118,656 |
| | $ | 64,402 |
| | $ | 86,313 |
| | $ | 269,371 |
| | $ | 5,972 |
| | $ | (29,563 | ) | | $ | 245,780 |
|
| | | | | | | | | | | | | |
Three months ended December 31, 2016: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 65,529 |
| | $ | 37,143 |
| | $ | 57,599 |
| | $ | 160,271 |
| | $ | (1,711 | ) | | $ | 443,530 |
| | $ | 602,090 |
|
Depreciation and amortization | 23,568 |
| | 9,806 |
| | 13,146 |
| | 46,520 |
| | 1,673 |
| | 1,494 |
| | 49,687 |
|
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 13,047 |
| | 13,047 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 18,321 |
| | 18,321 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 34,728 |
| | 34,728 |
|
Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (559,974 | ) | | (559,974 | ) |
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | 26,368 |
| | 26,368 |
|
Other | — |
| | — |
| | — |
| | — |
| | — |
| | 3,117 |
| | 3,117 |
|
Adjusted EBITDA | $ | 89,097 |
| | $ | 46,949 |
| | $ | 70,745 |
| | $ | 206,791 |
| | $ | (38 | ) | | $ | (19,369 | ) | | $ | 187,384 |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Lithium | | Bromine Specialties | | Catalysts | | Reportable Segments Total | | All Other | | Corporate | | Consolidated Total |
Year ended December 31, 2017: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 342,992 |
| | $ | 218,839 |
| | $ | 230,665 |
| | $ | 792,496 |
| | $ | 5,521 |
| | $ | (743,167 | ) | | $ | 54,850 |
|
Depreciation and amortization | 87,879 |
| | 40,062 |
| | 54,468 |
| | 182,409 |
| | 8,357 |
| | 6,162 |
| | 196,928 |
|
Utilization of inventory markup | 23,095 |
| | — |
| | — |
| | 23,095 |
| | — |
| | — |
| | 23,095 |
|
Restructuring and other | — |
| | — |
| | — |
| | — |
| | — |
| | 17,056 |
| | 17,056 |
|
Gain on acquisition | (6,221 | ) | | — |
| | — |
| | (6,221 | ) | | — |
| | — |
| | (6,221 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 33,954 |
| | 33,954 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 115,350 |
| | 115,350 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 431,817 |
| | 431,817 |
|
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | (16,125 | ) | | (16,125 | ) |
Multiemployer plan shortfall contributions | — |
| | — |
| | — |
| | — |
| | — |
| | 7,887 |
| | 7,887 |
|
Note receivable reserve | — |
| | — |
| | — |
| | — |
| | — |
| | 28,730 |
| | 28,730 |
|
Other | (1,093 | ) | | — |
| | (1,250 | ) | | (2,343 | ) | | — |
| | 502 |
| | (1,841 | ) |
Adjusted EBITDA | $ | 446,652 |
| | $ | 258,901 |
| | $ | 283,883 |
| | $ | 989,436 |
| | $ | 13,878 |
| | $ | (117,834 | ) | | $ | 885,480 |
|
| | | | | | | | | | | | | |
Year ended December 31, 2016: | | | | | | | | | | | | | |
Net income (loss) attributable to Albemarle Corporation | $ | 198,852 |
| | $ | 187,364 |
| | $ | 265,416 |
| | $ | 651,632 |
| | $ | 131,301 |
| | $ | (139,258 | ) | | $ | 643,675 |
|
Depreciation and amortization | 86,862 |
| | 39,562 |
| | 51,193 |
| | 177,617 |
| | 7,302 |
| | 6,056 |
| | 190,975 |
|
(Gain) loss on sales of businesses, net | — |
| | — |
| | — |
| | — |
| | (123,831 | ) | | 1,533 |
| | (122,298 | ) |
Acquisition and integration related costs | — |
| | — |
| | — |
| | — |
| | — |
| | 57,384 |
| | 57,384 |
|
Interest and financing expenses | — |
| | — |
| | — |
| | — |
| | — |
| | 65,181 |
| | 65,181 |
|
Income tax expense | — |
| | — |
| | — |
| | — |
| | — |
| | 96,263 |
| | 96,263 |
|
Income from discontinued operations (net of tax) | — |
| | — |
| | — |
| | — |
| | — |
| | (202,131 | ) | | (202,131 | ) |
Non-operating pension and OPEB items | — |
| | — |
| | — |
| | — |
| | — |
| | 25,589 |
| | 25,589 |
|
Other | — |
| | — |
| | — |
| | — |
| | — |
| | 3,579 |
| | 3,579 |
|
Adjusted EBITDA | $ | 285,714 |
| | $ | 226,926 |
| | $ | 316,609 |
| | $ | 829,249 |
| | $ | 14,772 |
| | $ | (85,804 | ) | | $ | 758,217 |
|