Neo Performance Materials Reports Fourth Quarter and Full Year 2024 Results

Canada NewsWire

TORONTO, March 18, 2025

Neo Grows Adjusted EBITDA(1) by 70% Year-Over-Year, Exceeding Guidance by 20%

TORONTO, March 18, 2025 /CNW/ - Neo Performance Materials Inc. ("Neo") (TSX: NEO) reported today its fourth quarter and full year 2024 financial results. The financial statements and management's discussion and analysis ("MD&A") are available at www.neomaterials.com/investors/ and on SEDAR+ at www.sedarplus.ca. All financial amounts in this news release and the Company's financial disclosures are in United States dollars, unless otherwise stated.

"Neo delivered outstanding financial and operational results in 2024, exceeding guidance with Adjusted EBITDA growth of over 70%, driven by strong performance in Rare Metals and Magnequench. We successfully executed major capital projects, including completing our Emissions Control Catalyst facility on time and under budget. Our European Permanent Magnet facility remains on track for a grand opening in 2025, marking a significant step forward in strengthening our global supply chain for Permanent Magnets.

We maintained a strong balance sheet with a net cash position, supported by healthy cash flow generation and working capital improvements. At the same time, we took decisive action to streamline our portfolio, divesting our rare earth separation assets in China, subject to closing conditions. This aligns with our strategy to reduce earnings volatility and focus on high-value-add growth business.

With a reinforced foundation, Neo is positioned for long-term growth as we expand our Permanent Magnet capabilities to meet accelerating demand, creating lasting value for our shareholders," said Rahim Suleman, Neo's President and Chief Executive Officer.

 
(1)  Neo reports certain non-IFRS financial measures including 
      "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", 
      "Adjusted Net Income or Loss", "Adjusted Earnings 
      per Share" and others, which are not measures recognized 
      under IFRS and do not have any standardized meaning 
      prescribed by IFRS. Please refer to the "Non-IFRS 
      Financial Measures" section of this news release and 
      the fourth quarter MD&A for more information. 
 

Key Takeaways

 
1.   Neo Delivers Strong Adjusted EBITDA Growth, Exceeding 
      Guidance and Increasing Outlook: Neo delivered $64 
      million in Adjusted EBITDA for 2024, 
      a 73% increase year-over-year, and 20% above guidance. 
      2024 Adjusted EBITDA at Magnequench increased 21% 
      year-over-year, and more than doubled 
      in Rare Metals. Despite divesting three non-core facilities 
      and the normalization of hafnium prices, Neo increases 
      its Adjusted EBITDA 2025 guidance range 
      from $53 - $58 million to $55 - $60 million. 
2..  Successful Execution on Major Capital Projects: Neo's 
     European Permanent Magnet facility remains on schedule 
     and on budget, with commercial 
     production set to begin in 2026. Notably, Neo secured 
     a major Tier 1 automotive supplier award ahead of 
     the facility's completion, reinforcing strong demand 
     for its Permanent Magnets and validating its strategic 
     expansion into this critical market.The Emissions Control Catalyst 
     facility has successfully 
     requalified most of its product portfolio, with the 
     remaining qualifications expected in the first half 
     of 2025. The project's final cost is expected to be 
     approximately 10% under budget. With a world-class 
     manufacturing footprint and a leading cost position, 
     Neo is well-positioned to grow volumes by double digits 
     in the coming years, leveraging additional capacity 
     at the new facility. 
3.   Simplifying the Business to Drive Focused Growth: 
     Neo continues to simplify its portfolio and enhance 
     its focus on value-add businesses. The planned 
     sale of its Chinese separation facilities, JAMR and 
     ZAMR, is expected to close in the first half of 2025, 
     pending customary approvals.On December 31, 2024, Neo completed the sale 
     of its 
     80% ownership interest in the Gallium Trichloride 
     facility in Oklahoma. 
4.   Strong Liquidity and Balance Sheet Position: As of 
      December 31, 2024, Neo maintains a solid liquidity 
      position with $85 million in cash and a net cash 
      balance of $14 million. The Company expects $7-10 
      million in EU grant reimbursements and approximately 
      $30 million from the announced sale of its 
      Chinese separation facilities in 2025. Further working 
      capital improvements are expected to enhance cash 
      flow, reinforcing Neo's strong balance sheet 
      and financial flexibility. 
5.   Strategic Review Progressing: Neo's financial advisors 
      are continuing to advance the Special Committee-led 
      strategic review process, and Neo remains 
      committed to taking steps to optimize its business, 
      including the divestment of non-core assets and the 
      improvement of operational performance. 
 

Financial Highlights

   -- Revenue for Q4 2024 was $134.9 million, compared to Q4 2023 revenue of 
      $128.7 million. On a year-over-year basis, 2024 revenue was $475.8 
      million compared to $571.5 million in 2023. 
 
   -- Operating income for Q4 2024 was $12.4 million, compared to Q4 2023 
      operating loss of $5.5 million. On a year-over-year basis, 2024 operating 
      income was $35.3 million, compared to $11.2 million in 2023. 
 
   -- Adjusted Net Loss(1) for Q4 2024 was $4.9 million, or $0.12 loss per 
      share, compared to Q4 2023 Adjusted Net Income(1) of $0.9 million or 
      $0.02 per share. On a year-over-year basis, 2024 Adjusted Net Income was 
      $1.9 million, or $0.05 per share, compared to Adjusted Net Loss of 
      $1.0 million, or $0.02 loss per share in 2023. 
 
   -- Adjusted EBITDA for Q4 2024 was $20.7 million, compared to Q4 2023 of 
      $3.1 million. On a year-over-year basis, 2024 Adjusted EBITDA was $64.4 
      million, compared to $37.2 million in 2023. 
 
   -- Adjusted EBITDA margin as a percentage of revenue for Q4 2024 increased 
      to 15.3% from 2.4% an improvement of 1300 basis points from the prior 
      year quarter. 2024 Adjusted EBITDA increased to 13.5% from 6.5%, an 
      improvement of 700 basis points from prior year. 
 
   -- For the year ended December 31, 2024, Neo generated $51.5 million in cash 
      from operating activities, driven by strong income from operations and 
      continued working capital improvements. 
 
   -- Neo had $85.5 million in cash and $68.8 million in gross debt and $2.7 
      million in bank advances on its balance sheet as of December 31, 2024. 
      Neo invested $80.2 million in capital expenditures for the year ended 
      December 31, 2024 mainly comprised of $26.8 million for the construction 
      of the Emissions Control Catalyst facility and $42.5 million for the 
      construction of the new permanent magnet manufacturing facility in 
      Europe. 
 
   -- Neo distributed $12.3 million in dividends to Neo's shareholders, and 
      repurchased $2.3 million of common shares for cancellation in 2024. 
 
   -- A quarterly dividend of CAD$0.10 per common share was declared on March 
      11, 2025, for shareholders of record on March 18, 2025, with a payment 
      date of March 27, 2025. 

Solid Business Performance

   -- Magnequench: Delivered robust growth in 2024, with sales volumes 
      increasing by 7.9% for the full year, driven by strong demand in bonded 
      permanent magnets and bonded powders in traction motor applications. The 
      segment continues to capitalize on key growth areas while optimizing cost 
      efficiencies, leading to improved profitability. 
 
   -- Significant developments and key performance drivers include: 
 
          -- Bonded magnet sales delivered record volumes up 23% for the full 
             year. 
 
          -- Bonded powders in traction motors delivered growth and won next 
             generation product platform. 
 
          -- Reduced conversion costs by 20% for the full year at its largest 
             facility. 
 
          -- Adjusted EBITDA for 2024 increased by $4.4 million, or 21% 
             compared to the prior year. 
 
   -- C&O: While C&O faced challenges in rare earth separation, impacting 
      earnings, the segment is taking tactical steps to drive growth and 
      profitability. Automotive catalyst volumes were impacted by relocation of 
      NAMCO and market conditions. The new emissions control catalyst facility 
      is ramping up, positioning Neo for long-term success. The planned sale of 
      the Chinese separation facilities remains on track, reinforcing the 
      Company's shift to high-value-add downstream businesses. At the same time, 
      the wastewater treatment business continues to gain momentum, supporting 
      future growth. 
 
   -- Significant developments and key performance drivers include: 
 
          -- Wastewater treatment business delivered record volumes up 46% for 
             the full year. 
 
          -- C&O rare earth separation business delivered negative $1.6 million 
             gross margin in 2024. 
 
          -- Adjusted EBITDA for 2024 declined by $4.4 million, or 47%, 
             compared to the prior year. 
 
   -- Rare Metals: Delivered another record year, with strong performance 
      across all facilities. The primary factor influencing financial 
      performance was its hafnium business. The whole segment delivered 
      improved financial and operational performance through notable changes to 
      its manufacturing strategy. 
 
   -- Significant developments and key performance drivers include: 
 
          -- Hafnium gross margins increased 76% for the full year. 
 
          -- Closure of hydrometallurgical processing in Silmet, Estonia 
             delivered measurable improvements. 
 

          -- Gallium business strengthened its position in the supply chain, 
             benefiting from regulatory tailwinds. 
 
          -- Adjusted EBITDA for 2024 increased by $27.6 million, or 114%, 
             versus the prior year. 

European Permanent Magnet Facility Nearing Completion

   -- Neo's European Permanent Magnet Facility remains on schedule and on 
      budget. The core manufacturing building is complete, and all key 
      equipment has been received. Customer qualification sample production is 
      set to begin in first half of 2025, with large-scale commercial 
      production expected in 2026. 
 
   -- Neo has invested $57.1 million (before EU grant reimbursement received of 
      $5.6 million) since project inception, with an expected Phase 1 capital 
      cost of $75.0 million before the anticipated EU grant reimbursement of 
      23% of eligible project costs. 
 
   -- In November 2024, Neo secured a $50.0 million credit facility from Export 
      Development Canada ("EDC") to support facility construction and 
      commissioning, with $25.0 million drawn as of December 31, 2024. 

Emissions Control Catalyst Plant Completed Under Budget

   -- Neo successfully completed its new Emissions Control Catalyst Facility 
      under budget, with total project spending expected to be $68.0 million, 
      approximately $7.0 million below initial estimates. 
 
   -- Neo has invested $49.8 million since project inception; with construction 
      and commissioning complete, the remaining spend relates primarily to 
      outstanding post-commissioning vendor payments. 
 
   -- Construction was partly funded through an EDC credit facility, with 
      $45.0 million drawn as of December 31, 2024. 

Asset Portfolio Rebalancing to Improve Quality of Earnings

   -- Neo's 2024 portfolio rebalancing focused on divesting non-core separation 
      assets in China to improve earnings quality, streamline operations, and 
      optimize capital allocation. 
 
   -- Neo has entered into agreements to sell (i) 86% equity interest in JAMR; 
      and (ii) 88% of the equity interest in ZAMR, amended from the original 
      agreement to sell 98% of the equity interest of ZAMR. The two 
      transactions are expected to generate approximately RMB 209.1 million 
      ($28.9 million) in aggregate cash proceeds. The sales are expected to 
      close in the first half of 2025 after the completion of customary closing 
      conditions, including local jurisdictional, administrative filings, 
      registrations and approvals. 

Non-core Divestment - Sale of Gallium Trichloride Facility

   -- On December 31, 2024, Neo completed the sale of its 80% ownership 
      interest in its Gallium Trichloride facility in Oklahoma, which includes 
      a seven-year agreement for the facility to purchase gallium from, and 
      transfer gallium scrap to, Neo's Peterborough facility. 

Strategic Review

   -- Neo continues to progress its previously announced Special Committee-led 
      strategic review process, which includes the consideration of strategic 
      alternatives and opportunities to maximize shareholder value. The Special 
      Committee remains committed to advancing the strategic review process 
      with Neo's financial advisors. 
 
   -- 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. 

Conference Call on Tuesday, March 18, 2025, at 10 a.m. Eastern Time

Management will host a teleconference call on Tuesday, March 18, 2025, at 10:00 a.m. ET to discuss the fourth quarter 2024 results.

Interested parties may access the teleconference by visiting https://emportal.ink/4hxnlVi or calling 1-416-945-7677 (local) or 1-888-699-1199 (toll-free long distance). For the webcast, visit https://app.webinar.net/6J8VyVkDqPa.

A teleconference recording may be accessed by calling 1-289-819-1450 (local) or 1-888-660-6345 (toll-free) and entering passcode 47143# until April 18, 2025.

Non-IFRS Financial Measures

This new release refers to certain specified financial measures, including non-IFRS financial measures and ratios such as "EBITDA", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Adjusted Net Income", "Adjusted Earnings per Share", "Debt to Adjusted EBITDA", "Free Cash Flow" and "Free Cash Flow conversion". These specified financial measures 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 specified financial measures 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 presentation may not be the same as the definitions for such measures used by other companies in their reporting.

Specified financial measures such as 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 specified financial measures 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 specified financial measures such as non-IFRS financial measures and ratios in the evaluation of issuers. Neo's management also uses non-IFRS financial measures and ratios to facilitate operating performance comparisons from period to period. Readers are cautioned that these measures should not be construed as an alternative to their nearest or directly comparable financial measures determined in accordance with IFRS as an indication of Neo's financial performance. For further information on how Neo defines such specified financial measures, including non-IFRS financial measures and ratios and, where applicable, their reconciliations to the nearest comparable IFRS measures, please see the "Non-IFRS Financial Measures" section of Neo's MD&A for the three months and year ended December 31, 2024, which is hereby incorporated by reference into this news release, and at 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, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as one dedicated research and development centre in Singapore. For more information, please visit www.neomaterials.com.

Cautionary Statements Regarding Forward Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of Neo. All statements in this news release, other than statements of historical facts, with respect to Neo's objectives and goals, as well as statements with respect to its beliefs, plans, objectives, expectations, anticipations, estimates, and intentions are forward-looking information.

Specific forward-looking information in this presentation include, but are not limited to: expectations regarding certain of Neo's future results and information, including, among other things, revenue, expenses, growth prospects, capital expenditures, and operations; risk factors relating to national or international economies, geopolitical risk and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and/or its logistics partners operate, and; statements with respect to current and future market trends that may directly or indirectly impact sales and revenue of Neo, including but not limited to the price of rare earth elements; expected use of cash balances; continuation of prudent management of working capital; source of funds for ongoing business requirements and capital investments; expectations regarding sufficiency of the allowance for uncollectible accounts and inventory provisions; analysis regarding sensitivity of the business to changes in exchange rates and changes in rare earth prices; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; expectations regarding demand for fan motors and superalloys; expectations regarding the growth of superconductor materials; the closing and the anticipated timing thereof for the sale of the JAMR and ZAMR separation facilities together with the targeted return; anticipated completion and launch of Neo's new permanent magnet facility in Europe and related commercial production estimates, forecasted budget, commissioning and costs associated with the facility; targeted reductions in SG&A; Neo's requalified product portfolio, including the NAMCO product portfolio, and continued product qualification expected in 2025; anticipated final costs associated with the NAMCO project; expectations regarding tariffs; securing new automotive customer agreements for permanent magnet and

emissions control facilities; expectations concerning the continued growth of the Magnequench project and improvements in C&O; expectations concerning any remediation efforts to Neo's design of its internal controls over financial reporting and disclosure controls and procedures; and Neo's 2025 guidance, including Neo's 2025 Adjusted EBITDA guidance and the assumptions relating thereto.

Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Additionally, Neo's 2025 guidance reflects Neo's expectations as to financial performance in 2025 based on assumptions which Neo believes to be reasonable as of the date of this presentation, including but not limited to continued Magnequench growth, significant improvements in C&O, exiting lower-margin separation assets, strong hafnium demand despite pricing moderation, continued reduction in SG&A expenses, expectations regarding tariffs; securing new automotive customer agreements for permanent magnet and emissions control facilities; expectations concerning the continued growth of the Magnequench project and improvements in C&O. Neo believes the expectations reflected in such forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information included in this discussion and analysis should not be unduly relied upon. For more information on Neo, investors should review Neo's continuous disclosure filings available under its profile at www.sedarplus.ca. Information contained in forward-looking statements in this presentation is provided as of the date hereof and Neo disclaims any obligation to update any forward-looking information, whether as a result of new information or future events or results, except to the extent required by applicable securities laws.

HIGHLIGHTS OF FOURTH QUARTER 2024 CONSOLIDATED PERFORMANCE

 
($000s, except per       Three Months Ended      Year EndedDecember 31 
share information)        December 31, 
                         2024          2023      2024           2023 
Revenue 
Magnequench               $    43,500  $ 54,827   $    176,649  $  213,735 
C&O                            43,606    55,552        146,516     235,929 
Rare Metals                    48,441    19,724        156,206     124,601 
Corporate / 
 Eliminations                   (644)   (1,435)        (3,543)     (2,720) 
Consolidated Revenue      $   134,903  $128,668   $    475,828  $  571,545 
 
Operating Income (Loss) 
Magnequench               $     2,018  $  2,675   $     10,123  $    7,618 
C&O                                27     2,622        (2,854)       4,088 
Rare Metals                    16,910   (5,597)         50,134      19,670 
Corporate / 
 Eliminations                 (6,600)   (5,170)       (22,102)    (20,209) 
Consolidated Operating 
 Income (Loss)            $    12,355  $(5,470)   $     35,301  $   11,167 
 
Adjusted Earnings Before Interest, Taxes, Depreciation 
 and Amortization ("Adjusted EBITDA") 
Magnequench               $     6,824  $  5,950   $     25,528  $   21,149 
C&O                             1,350     3,218          4,924       9,306 
Rare Metals                    17,383   (2,200)         51,762      24,207 
Corporate / 
 Eliminations                 (4,866)   (3,871)       (17,816)    (17,443) 
Consolidated Adjusted 
 EBITDA                   $    20,691  $  3,097   $     64,398  $   37,219 
 
Net Loss                  $  (12,037)  $(1,129)   $   (13,016)  $  (8,391) 
Loss per share attributable to equity holders of Neo 
Basic                     $    (0.29)  $ (0.03)   $     (0.31)  $   (0.19) 
Diluted                   $    (0.29)  $ (0.03)   $     (0.31)  $   (0.19) 
 
Cash spent on property, 
 plant and equipment 
 and intangible 
 assets                   $    12,077  $ 24,332   $     64,202  $   41,743 
Cash taxes paid           $     3,579  $  2,089   $     22,411  $   13,410 
Dividends paid to 
 shareholders             $     3,062  $  3,335   $     12,330  $   13,396 
Special dividend          $     7,967  $     --   $     15,183  $       -- 
Repurchase of common 
 shares under Normal 
 Course Issuer 
 Bid                      $        --  $  3,209   $      2,250  $   19,893 
 
As at: 
Cash and cash 
 equivalents                                      $     85,489  $   86,895 
Short-term debt, bank 
 advances & other                                 $      2,740  $       -- 
Current & long-term 
 debt                                             $     68,796  $   25,331 
 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 
($000s)                                   December 31, 2024  December 31, 2023 
ASSETS 
Current 
Cash and cash equivalents                          $ 85,489           $ 86,895 
Restricted cash                                          --              3,357 
Accounts receivable                                  61,232             67,643 
Inventories                                         139,321            197,453 
Income taxes receivable                               4,108                744 
Assets held for sale                                 40,949                 -- 
Other current assets                                 24,264             22,542 
Total current assets                                355,363            378,634 
Property, plant and equipment                       178,925            118,918 
Intangible assets                                    33,580             38,511 
Goodwill                                             64,029             65,160 
Investments                                          16,330             17,955 
Deferred tax assets                                   4,045              6,760 
Other non-current assets                                982              1,066 
Total non-current assets                            297,891            248,370 
Total assets                                      $ 653,254          $ 627,004 
 
LIABILITIES AND EQUITY 
Current 
Short-term debt                                     $ 2,740               $ -- 
Accounts payable and other accrued 
 charges                                             69,546             71,984 
Income taxes payable                                 10,463              9,207 
Provisions                                           12,512                823 
Lease obligations                                     1,229              1,664 
Derivative liability                                 47,416             36,294 
Current portion of long-term debt                     4,610              2,230 
Liabilities directly associated with the             10,254                 -- 
assets held 
for sale 
Other current liabilities                               647                692 
Total current liabilities                           159,417            122,894 
Long-term debt                                       64,186             23,101 
Derivative liability                                  1,311              1,082 
Provisions                                            6,726             26,197 
Deferred tax liabilities                             12,646             14,294 
Lease obligations                                     3,244              2,425 
Other non-current liabilities                           842              1,700 
Total non-current liabilities                        88,955             68,799 
Total liabilities                                   248,372            191,693 
Non-controlling interest                              2,714              3,164 
Equity attributable to equity holders of 
 Neo Performance 
 Materials Inc.                                     402,168            432,147 
Total equity                                        404,882            435,311 
Total liabilities and equity                      $ 653,254          $ 627,004 
 
 
See accompanying notes to this table in Neo's audited 
 consolidated financial statements as at December 31, 
 2024 and for the year then ended, available at www.neomaterials.com 
 and on SEDAR+ at www.sedarplus.ca. 
-------------------------------------------------------------------- 
 

CONSOLIDATED RESULTS OF OPERATIONS

 
($000s)                         Three Months Ended     Year EndedDecember 31 
                                 December 31, 
                                2024        2023       2024          2023 
Revenue                          $ 134,903  $ 128,668     $ 475,828  $ 571,545 
Cost of sales 
Cost excluding depreciation 
 and amortization                   94,466    107,350       343,315    462,815 
Depreciation and amortization        2,512      2,416         8,553      9,626 
Gross profit                        37,925     18,902       123,960     99,104 
Expenses 
Selling, general and 
 administrative                     16,446     14,485        61,400     59,155 
Share-based compensation               770      1,946         3,060      3,738 
Depreciation and amortization        1,796      1,813         7,192      7,187 
Research and development             6,894      4,415        16,869     16,144 
(Reversal of impairment) / 
 impairment of assets                (336)      1,713           138      1,713 
Total expenses                      25,570     24,372        88,659     87,937 
Operating income (loss)             12,355    (5,470)        35,301     11,167 
Other income                           507      2,776         3,405      3,138 
Finance (costs) income, net       (13,882)        742      (27,488)    (6,707) 

Foreign exchange loss              (4,236)          4       (4,268)    (1,428) 
Income from operations before 
 income taxes and equity 
 loss of associates                (5,256)    (1,948)         6,950      6,170 
Income tax (expense) benefit       (7,571)         39      (17,945)   (11,683) 
Loss from operations before 
 equity loss of associates        (12,827)    (1,909)      (10,995)    (5,513) 
Equity loss of associates (net 
 of income tax)                        790        780       (2,021)    (2,878) 
Net loss                        $ (12,037)  $ (1,129)    $ (13,016)  $ (8,391) 
Attributable to: 
Equity holders of Neo 
 Performance Materials Inc.     $ (12,050)  $ (1,367)    $ (12,946)  $ (8,442) 
Non-controlling interest                13        238          (70)         51 
                                $ (12,037)  $ (1,129)    $ (13,016)  $ (8,391) 
Loss per share attributable to equity 
holders of Neo: 
Basic                             $ (0.29)   $ (0.03)      $ (0.31)   $ (0.19) 
Diluted                           $ (0.29)   $ (0.03)      $ (0.31)   $ (0.19) 
 
 
For additional information, refer Neo's MD&A for the 
 three months and year ended December 31, 2024, available 
 at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca 
---------------------------------------------------------- 
 

RECONCILIATIONS OF NET LOSS TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW

 
($000s, except volume)   Three Months Ended    Year EndedDecember 31 
                          December 31, 
                         2024       2023       2024            2023 
Sales volume (tonnes)        3,157      3,144          12,413     12,970 
 
Revenue                  $ 134,903  $ 128,668   $     475,828  $ 571,545 
 
Net loss                 $(12,037)  $ (1,129)   $    (13,016)  $ (8,391) 
Add back (deduct): 
Finance costs (income), 
 net                        13,882      (742)          27,488      6,707 
Income tax expense 
 (benefit)                   7,571       (39)          17,945     11,683 
Depreciation and 
 amortization included 
 in cost of 
 sales                       2,512      2,416           8,553      9,626 
Depreciation and 
 amortization included 
 in operating 
 expenses                    1,796      1,813           7,192      7,187 
EBITDA                      13,724      2,319          48,162     26,812 
Adjustments to EBITDA: 
Other income                 (507)    (2,776)         (3,405)    (3,138) 
Foreign exchange loss 
 (gain)                      4,236        (4)           4,268      1,428 
Equity (income) loss of 
 associates                  (790)      (780)           2,021      2,878 
Share-based 
 compensation                  770      1,946           3,060      3,738 
Fair value adjustments 
 to inventory acquired          --        222              --      1,217 
Project start-up and 
 transition costs            2,345        457           7,827      1,370 
Transaction and other 
 costs                       1,249         --           2,327      1,201 
(Recovery) impairment 
 of assets                   (336)      1,713             138      1,713 
Adjusted EBITDA          $  20,691  $   3,097   $      64,398  $  37,219 
Adjusted EBITDA Margin      15.3 %      2.4 %          13.5 %      6.5 % 
Less: 
Capital expenditures     $  22,818  $  24,332   $      80,205  $  43,961 
Free Cash Flow           $ (2,127)  $(21,235)   $    (15,807)  $ (6,742) 
 
 
For additional information, refer Neo's MD&A for the 
 three months and year ended December 31, 2024, available 
 at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca 
---------------------------------------------------------- 
 

RECONCILIATIONS OF NET LOSS TO ADJUSTED NET (LOSS) INCOME

 
($000s)                  Three Months Ended      Year EndedDecember 31 
                          December 31, 
                         2024          2023      2024            2023 
Net loss                  $  (12,037)  $(1,129)   $    (13,016)  $ (8,391) 
Adjustments to net 
loss: 
Foreign exchange loss 
 (gain)                         4,236       (4)           4,268      1,428 
(Recovery) impairment 
 of assets                      (336)     1,713             138      1,713 
Share-based 
 compensation                     770     1,946           3,060      3,738 
Project start-up & 
 transition costs               2,345       457           7,827      1,370 
Other items included in 
 other income                 (1,245)   (2,251)         (3,244)    (2,529) 
Fair value adjustments 
 to inventory acquired             --       222              --      1,217 
Transaction and other 
 costs                          1,249        --           2,327      1,201 
Tax impact of the above 
 items                            138      (53)             545      (722) 
Adjusted net (loss) 
 income                   $   (4,880)  $    901   $       1,905  $   (975) 
 
Attributable to: 
Equity holders of Neo     $   (4,893)  $    663   $       1,975  $ (1,026) 
Non-controlling 
 interest                          13       238   $        (70)  $      51 
 
Weighted average number of common shares outstanding: 
Basic (000s)                   41,759    42,418          41,773     44,325 
Diluted (000s)                 41,759    42,418          41,773     44,325 
Adjusted income (loss) per share attributable to equity 
 holders of Neo: 
Basic                     $    (0.12)  $   0.02   $        0.05  $  (0.02) 
Diluted                   $    (0.12)  $   0.02   $        0.05  $  (0.02) 
 
 
For additional information, refer Neo's MD&A for the 
 three months and year ended December 31, 2024, available 
 at www.neomaterials.com and on SEDAR+ at www.sedarplus.ca 
---------------------------------------------------------- 
 

SOURCE Neo Performance Materials, Inc.

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Information Contacts: Irina Kuznetsova, Investor Relations, (416) 367-8588 ext. 7334, ir@neomaterials.com, www.neomaterials.com; Vasileios Tsianos, Media Requests, (416) 367-8588 ext. 7335, media@neomaterials.com

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March 18, 2025 07:00 ET (11:00 GMT)