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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