2018 Highlights
(unless other noted, all financial amounts in this news release are expressed in U.S. dollars)

 

  • $454.2 million in revenue
  • Net income of $41.1 million, or $1.02 per share
  • Adjusted Net Income(1) of $38.9 million, or $0.97 per share
  • Adjusted EBITDA(1) of $67.1 million
  • Year-end closes with $67.0 million of net cash after paying $11.7 million in dividends to the shareholders.
  • A quarterly dividend of Cdn$0.095 per common share was declared on February 28, 2019 for shareholders of record at March 20, 2019.

 

TORONTO, Canada, March 11, 2019 – Neo Performance Materials Inc. (“Neo“, the “Company“) (TSX:NEO), a global leader in the innovation and manufacturing of rare earth and rare metal-based functional materials, today released 2018 year-end financial results. The financial statements and management’s discussion and analysis (“MD&A“) of these results can be viewed on Neo’s web site at www.neomaterials.com and on SEDAR at www.sedar.com.


HIGHLIGHTS OF 2018 YEAR END CONSOLIDATED PERFORMANCE

For the year ended December 31, 2018, consolidated revenue was $454.2 million compared to $434.2 million in the prior year; an increase of $20.0 million or 4.6%.  Net income totaled $41.1 million, or $1.02 per share, compared to $25.4 million, or $0.62 per share, in the year ended December 31, 2017.  Adjusted Net Income(1) totaled $38.9 million, or $0.97 per share.

In the fourth quarter of 2018, Neo generated $109.4 million in revenue, a slight decrease of 0.1% over Q4 2017. Net income totaled $4.4 million, or $0.11 per share.  Adjusted Net Income(1) totaled $7.5 million, or $0.19 per share.  Adjusted EBITDA(1) decreased to $13.2 million, from $15.6 million in Q4 2017.

As of December 31, 2018, Neo reported cash and cash equivalents of $71.0 million, compared to $96.8 million as at December 31, 2017.  The change in cash resulted from an increase in working capital associated with higher raw material inventory purchases, higher inventory in the auto-catalyst supply chain, increased inventory costs, and by certain cash costs spent in 2018 related to the completion of the Initial Public Offering in December 2017.  Neo has approximately $15.3 million available under its credit facilities with $4.0 million drawn from the revolving line of credit.  In addition, Neo paid $11.7 million in dividends to its shareholders in the year ended December 31, 2018. and re-purchased $3.8 million of stock under its Normal Course Issuer Bid Program.

“I am pleased with the progress we made on a number of strategic fronts in 2018 and with Neo’s continuing long-term growth trajectory,” said Geoff Bedford, Neo’s President and CEO. “Neo has successfully positioned itself not only as a global supplier of critical functional materials essential to the performance of our customer’s products, but also as a collaborative product development partner with our customers.  We continue to see opportunities for our Company driven by fundamental and long-term trends in hybrid and electric vehicles, auto emissions catalysts, superalloy applications, and many other sectors.”

On December 18, 2018, Neo entered into an arrangement agreement (the “Arrangement Agreement“) with Luxfer Holdings plc (“Luxfer“) and 2671219 Ontario Inc. (the “Purchaser“), a wholly-owned subsidiary of Luxfer, pursuant to which, the Purchaser would acquire the issued and outstanding Common Shares of Neo (“Common Shares“) in consideration of US$5.98 in cash and 0.395 Luxfer shares for each Common Share (the “Luxfer Transaction“).  On March 10, 2019, Luxfer and Neo mutually agreed to terminate the Luxfer Transaction.

 

SELECTED FINANCIAL RESULTS

TABLE 1: Selected Consolidated Results
Q-over-Q Comparison YTD-over-YTD Comparison
Q4 2018 Q4 2017 2018 2017
($000s)
Revenue $109,361 $109,452 $454,195 $434,169
Operating income(1) $6,224 $4,716 $42,888 $34,825
EBITDA(2) $11,342 $7,679 $69,674 $54,653
Adjusted EBITDA(2) $13,235 $15,593 $67,113 $67,896
Adjusted EBITDA %(2) 12.1% 14.2% 14.8% 15.6%

_________________________

(1)In accordance with IFRS 3 – Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&A.

(2)Neo reports non-IFRS measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Please see information on this and other non-IFRS measures in the “Non-IFRS Measures” section of this news release and in the MD&A.

 

Consolidated revenue in 2018 rose by 4.6% over 2017 and 18.9% over 2016 levels.  Adjusted EBITDA for 2018 was $67.1 million, a 1.2% decrease from the $67.9 million reported in 2017, but an improvement of $19.5 million, or 40.9%, from 2016 levels.  Adjusted EBITDA was adversely affected by $4.2 million of premium costs incurred in early 2018 related to the implementation of wastewater treatment system in late 2017.  Revenue in the fourth quarter of 2018 was $109.4 million, nominally unchanged from the comparable period of 2017.  Adjusted EBITDA in the fourth quarter of 2018 was $2.4 million lower than the fourth quarter of 2017, primarily related to the impact of timing on Magnequench pass-through pricing agreements and the general slowdown in auto sales.

 

MAGNEQUENCH SEGMENT RESULTS

Magnequench continues to see growth in many of its end-market applications, including traction motors for hybrid and electric vehicles and micro motors for vehicles, factory automation, and other motor applications.  2018 revenue increased by 5.3% over 2017 and was higher by 34.2% from 2016 levels.  Adjusted EBITDA for 2018 was $50.5 million, a 2.2% increase over 2017 and a 32.4% increase from 2016 levels.  In the fourth quarter of 2018, revenue was $47.2 million, compared to $59.1 million in the prior-year period.  Adjusted EBITDA was $9.1 million, compared to $14.7 million in the same period of 2017.

The decrease in fourth quarter revenue and Adjusted EBITDA is primarily attributable to timing related to rare earth price changes and pass-through pricing agreements that are implemented on a lagged basis.  A key feature of Neo’s strategic focus on value-add margins is to pass through rare earth prices to its customers, albeit on a lagged basis (generally monthly, quarterly or semi-annually).  This delay in implemented selling price changes can cause fluctuations in quarter-to-quarter results but is effective at maintaining EBITDA in the longer term.

 

TABLE 2: Selected Magnequench Results
Q-over-Q Comparison YTD-over-YTD Comparison
Q4 2018 Q4 2017 2018 2017
Volume (tonnes) 1,446 1,539 6,128 6,305
($000s)
Revenue $47,210 $59,131 $213,712 $202,905
Operating income(1) $6,670 $12,831 $41,957 $40,986
EBITDA(2) $8,447 $14,555 $49,301 $48,060
Adjusted EBITDA(2) $9,051 $14,686 $50,483 $49,407

_________________________

(1)In accordance with IFRS 3 – Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&A.

(2)Neo reports non-IFRS measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Please see information on this and other non-IFRS measures in the “Non-IFRS Measures” section of this news release and in the MD&A.

 

CHEMICALS AND OXIDES (“C&O”) SEGMENT RESULTS

C&O saw strong continuing growth in its gasoline auto catalyst business, which helped to offset a decline in diesel catalyst markets.  2018 revenue totaled $161.4 million, compared to $170.9 million in 2017, a decrease of 5.5%.  Adjusted EBITDA for the year decreased to $18.5 million from $25.3 million in 2017.  Revenue in the fourth quarter

of 2018 was $38.2 million, which compares to $36.2 million in same period of 2017, an increase of 5.5%.  Adjusted EBITDA in the fourth quarter of 2018 totaled $4.6 million, compared to $2.4 million in the same period in 2017.

Adjusted EBITDA results for the year were impacted by $4.2 million of premium freight costs that were incurred in the first half of 2018 as a result of production process upgrades made at Neo’s Zibo, China facility in late 2017.   In the fourth quarter of 2018, C&O had slower sales and performance related to a general slowdown in automotive markets.  In the separated rare earth market, C&O benefited from volatility in rare earth prices in 2017, while 2018 generally saw slow declines in pricing through the year, causing compressed margins as C&O was selling the higher cost inventory on hand.

 

TABLE 3: Selected C&O Results
Q-over-Q Comparison YTD-over-YTD Comparison
Q4 2018 Q4 2017 2018 2017
Volume (tonnes) 1,843 1,923 7,611 8,656
($000s)
Revenue $38,207 $36,212 $161,422 $170,890
Operating income(1) $3,101 $1,005 $12,934 $16,892
EBITDA(2) $4,179 $2,161 $17,388 $21,939
Adjusted EBITDA(2) $4,569 $2,359 $18,483 $25,294

_________________________

(1)In accordance with IFRS 3 – Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&A.

(2)Neo reports non-IFRS measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Please see information on this and other non-IFRS measures in the “Non-IFRS Measures” section of this news release and in the MD&A.

 

RARE METALS SEGMENT RESULTS

Rare Metals continues to see higher performance and growth trends in tantalum, niobium, and gallium-based products, offset by lower customer demand for hafnium-based products.  Revenue in 2018 was $93.8 million, compared to $76.0 million in the prior-year period, for an increase of $17.8 million or 23.4%.  Adjusted EBITDA grew to $9.8 million in 2018, from $9.1 million in 2017.  In the fourth quarter of 2018, revenue was $27.3 million, which compares to $19.7 million in the prior-year period.  Adjusted EBITDA was $1.7 million in 2018, compared to $2.0 million in 2017, due to changes in selling prices and volumes within the quarter.

Improvement in 2018 can be attributed primarily to strong results continuing at the Silmet facility, due to a combination of increased volumes, higher selling prices, higher flow-through margins, continued focus on higher margin programs, and continued operational improvements, particularly since the capacity was re-introduced into the operation during 2017.

 

TABLE 4: Selected Rare Metals Results
Q-over-Q Comparison YTD-over-YTD Comparison
Q4 2018 Q4 2017 2018 2017
Volume (tonnes) 227 124 650 448
($000s)
Revenue $27,309 $19,722 $93,789 $76,009
Operating income(1) $438 $720 $4,578 $3,935
EBITDA(2) $1,630 $1,904 $9,433 $9,110
Adjusted EBITDA(2) $1,702 $1,951 $9,754 $9,123

_________________________

(1)In accordance with IFRS 3 – Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&A.

(2)Neo reports non-IFRS measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Please see information on this and other non-IFRS measures in the “Non-IFRS Measures” section of this news release and in the MD&A.

 

CONFERENCE CALL ON MONDAY, MARCH 11, 2019 AT 10 AM EASTERN

Management will host a teleconference call on Monday, March 11, 2019 at 10:00 a.m. (Eastern Time) to discuss the 2018 year-end results.  Interested parties may access the teleconference by calling (647) 427-7450 (local) or  (888) 231-8191 (toll-free long distance) or by visiting http://cnw.en.mediaroom.com/events.  A recording of the teleconference may be accessed by calling (416) 849-0833 (local) or (855) 859-2056 (toll-free long distance), and entering pass code 8089445# until April 11, 2019 or by visiting http://cnw.en.mediaroom.com/events.

 

NON-IFRS MEASURES

This news release refers to certain non-IFRS financial measures such as “Adjusted Net Income”, “EBITDA”, “Adjusted EBITDA”, and “Adjusted EBITDA Margin”.  These 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 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 news release may not be the same as the definitions for such measures used by other companies in their reporting.  Non-IFRS measures 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 non-IFRS 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 non-IFRS financial measures in the evaluation of issuers.  Neo’s management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period.  For the operating segments, Neo also uses “OIBDA” and “Adjusted OIBDA”, which reconciles to operating income. Neo uses Adjusted OIBDA and Adjusted EBITDA interchangeably as the use of adjustments in each measure provides the same calculated outcome of operating performance. For definitions of how Neo defines such financial measures, please see the “Non-IFRS Financial Measures” section of Neo’s management’s discussion and analysis filing for the year ended December 31, 2018, available on Neo’s web site at www.neomaterials.com and on SEDAR at www.sedar.com.

 

ACQUISITION OF INVENTORY AT FAIR VALUE 

In accordance with IFRS 3 – Business Combinations, and on completion of the Reorganization, Neo recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the year ended December 31, 2017 and impacted costs of sales by $2,912. The mark-up has not been added back to operating income in the calculation of operating income. For the year ended December 31, 2017, the $2,912 consists of Magnequench $868, C&O $2,463 and Rare Metals $(419). All these inventories were sold, and the mark-up was released by the end of 2017; therefore, there is no impact to operating income in 2018. For a full description, please refer to Neo’s MD&A for the year ended December 31, 2018, available on Neo’s website www.neomaterials.com and on SEDAR at www.sedar.com.

 

TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

($000s) December 31, 2018 December 31, 2017
ASSETS
Current
Cash and cash equivalents $ 71,015 $ 96,805
Restricted cash 1,650 1,529
Accounts receivable 49,544 46,766
Inventories 136,350 104,534
Income taxes receivable 343 661
Other current assets 20,554 13,955
Total current assets 279,456 264,250
Property, plant and equipment 86,963 88,392
Intangible assets 66,721 72,769
Goodwill 99,365 101,893
Investments 8,605 8,633
Deferred tax assets 1,079 1,406
Other non-current assets 834 1,150
Total non-current assets 263,567 274,243
Total assets $ 543,023 $ 538,493
LIABILITIES AND EQUITY
Current
Bank advances and other short-term debt $ 3,970 $ 181
Accounts payable and other accrued charges 59,877 72,250
Income taxes payable 6,566 6,319
Other current liabilities 777 2,704
Total current liabilities 71,190 81,454
Employee benefits 2,125 2,437
Derivative liability 9,525 9,842
Provisions 4,717 4,665
Deferred tax liabilities 17,730 20,206
Other non-current liabilities 559 642
Total non-current liabilities 34,656 37,792
Total liabilities 105,846 119,246
Non-controlling interest 4,758 5,831
Equity attributable to equity holders of Neo Performance Materials Inc 432,419 413,416
Total equity 437,177 419,247
Total liabilities and equity $ 543,023 $ 538,493

 ____________________________

See accompanying notes to this table in Neo’s  Consolidated Financial Statements for the Year Ended December 31, 2018, available on Neo’s website at www.neomaterials.com and on SEDAR at www.sedar.com.

 

TABLE 6: CONSOLIDATED RESULTS OF OPERATIONS

Comparison of the three and twelve months ended December 31, 2018 to the three and twelve months ended December 31, 2017:

($000s) Three Months Ended December 31, Year Ended December 31,
2018 2017 2018 2017
Revenue $ 109,361 $ 109,452 $ 454,195 $ 434,169
Costs of sales
Costs excluding depreciation and amortization 81,700 75,144 324,361 296,648
Depreciation and amortization 2,352 2,491 9,741 10,101
Gross profit 25,309 31,817 120,093 127,420
Expenses
Selling, general and administrative 13,898 20,825 49,948 63,222
Share-based compensation (222) 400 3,436 6,241
Depreciation and amortization 1,716 1,587 6,978 7,418
Research and development 3,693 4,289 16,843 15,714
19,085 27,101 77,205 92,595
Operating income 6,224 4,716 42,888 34,825
Other income (loss) 723 (962) 10,660 1,803
Finance (cost) income, net (945) (28) 649 152
Foreign exchange (loss) gain (382) 99 (565) (466)
Income from operations before income taxes and equity income (loss) of associates 5,620 3,825 53,632 36,314
Income tax expense (1,948) (5,239) (12,465) (11,893)
Income (loss) from operations before equity income (loss) of associates 3,672 (1,414) 41,167 24,421
Equity income (loss) of associates (net of income tax) 709 (252) (28) 972
Net income (loss) $ 4,381 $ (1,666) $ 41,139 $ 25,393
Attributable to:
Equity holders of Neo Performance Materials Inc. $ 4,285 $ (1,903) $ 40,795 $ 24,620
Non-controlling interest 96 237 344 773
$ 4,381 $ (1,666) $ 41,139 $ 25,393
Earnings per share attributable to equity holders of Neo Performance Materials Inc.:
Basic $ 0.11 $ (0.05) $ 1.02 $ 0.62
Diluted $ 0.11 $ (0.05) $ 1.01 $ 0.61

____________________________

See Management’s Discussion and Analysis for the Year Ended December 31, 2018, available on Neo’s website at www.neomaterials.com and on SEDAR at www.sedar.com.

 

TABLE 7: RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW

($000s) Three Months Ended December 31, Year Ended December 31,
2018 2017 2018 2017
Net income (loss) $ 4,381 $ (1,666) $ 41,139 $ 25,393
Add back (deduct):
Finance cost (income), net 945 28 (649) (152)
Income tax expense 1,948 5,239 12,465 11,893
Depreciation and amortization included in costs of sales 2,352 2,491 9,741 10,101
Depreciation and amortization 1,716 1,587 6,978 7,418
EBITDA 11,342 7,679 69,674 54,653
Adjustments to EBITDA:
Equity (income) loss in associates (709) 252 28 (972)
Other (income) loss (1) (723) 962 (10,660) (1,803)
oreign exchange loss (gain) (2) 382 (99) 565 466
Share and value-based compensation expense (3) 782 802 5,345 6,643
Acquired inventory fair value release (4) 2,912
Non-recurring transaction cost (5) 2,161 5,997 2,161 5,997
Adjusted EBITDA $ 13,235 $ 15,593 $ 67,113 $ 67,896
Adjusted EBITDA Margins 12.1% 14.2% 14.8% 15.6%
Less:
Capital expenditures 4,760 4,807 13,511 12,279
Free Cash Flow 8,475 10,786 53,602 55,617
Free Cash Flow Conversion (6) 64.0% 69.2% 79.9% 81.9%


Notes:

  • Represents other income (expenses) resulting from non-operational related activities. Other income primarily relating to costs and insurance recoveries as a result of the fire at the Silmet facility and other costs that are non–recurring and have less bearing on Neo’s operating performance. These costs and recoveries are not indicative of Neo’s ongoing activities.
  • Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.
  • Represents share and value-based compensation expense in respect of the Legacy Plan, the LTIP and the long-term value bonus plan, which has similar vesting criteria to the share-based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance. Value-based compensation expense of $1,004 and $1,909 is included in selling, general, and administration expenses for the three and twelve months ended December 31, 2018, respectively, and $402 is included in selling, general, and administration expenses for both three and twelve months ended December 31, 2017, respectively.  Neo has removed both the share and value-based compensation expense from EBITDA to provide comparability with historic periods and to treat it consistently with the share-based awards that they are intended to replace.
  • In accordance with IFRS 3 Business Combinations and on completion of the reorganization (please refer to the MD&A dated March 9, 2018), Neo recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the year ended December 31, 2017 and had a $2,912 impact on EBITDA. Neo has removed this from EBITDA to provide a measure of operating performance without the non-cash, non-operational accounting change to the inventory and to provide comparability with historic periods.
  • These costs are related to legal, professional advisory fees and other transaction costs incurred primarily associated with the Luxfer Transaction in the three and twelve months ended December 31, 2018 and as a result of the IPO by way of Secondary Offering in the three and twelve months ended December 31, 2017. These charges were included in selling, general, and administration expense.
  • Calculated as Free Cash Flow divided by Adjusted EBITDA.

 

TABLE 8: RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME

($000s) Three Months Ended December 31, Year Ended December 31,
2018 2017 2018 2017
Net income (loss) $ 4,381 $ (1,666) $ 41,139 $ 25,393
Adjustments to net income:
Foreign exchange loss (gain) (1) 382 (99) 565 466
Share and value-based compensation expense (2) 782 802 5,345 6,643
Acquired inventory fair value release (3) 2,912
Non-recurring transaction cost (4) 2,161 5,997 2,161 5,997
Non-recurring items included in other income (5) (172) (9,763) (3,607)
Tax impact of the above items (37) (147) (524) (868)
Adjusted net income $ 7,497 $ 4,887 $ 38,923 $ 36,936
Attributable to:
Equity holders of Neo Performance Materials Inc. 7,401 4,650 38,579 36,163
Non-controlling interest 96 237 344 773
Weighted average number of common shares outstanding:
Basic 39,772,272 39,954,609 39,852,189 39,800,816
Diluted 40,172,359 40,513,959 40,368,007 40,286,402
Adjusted earnings per share (6) attributable to equity shareholders of Neo Performance Materials Inc.:
Basic $ 0.19 $ 0.12 $ 0.97 $ 0.91
Diluted $ 0.18 $ 0.11 $ 0.96 $ 0.90


Notes:

  • Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.
  • Represents share and value-based compensation expense in respect of the Legacy Plan, the LTIP and the long-term value bonus plan, which has similar vesting criteria to the share-based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance. Value-based compensation expense of $1,004 and $1,909 is included in selling, general, and administration expenses for the three and twelve months ended December 31, 2018, respectively, and $402 is included in selling, general, and administration expenses for both three and twelve months ended December 31, 2017, respectively.  Neo has removed both the share and value-based compensation expense from net income (loss) to provide comparability with historic periods and to treat it consistently with the share-based awards that they are intended to replace.
  • In accordance with IFRS 3 Business Combinations and on completion of the reorganization (please refer to the MD&A dated March 9, 2018), Neo recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the year ended December 31, 2017 and had a $2,912 impact on net income (loss). Neo has removed this from net income (loss) to provide a measure of operating performance without the non-cash, non-operational accounting change to the inventory and to provide comparability with historic periods.
  • These costs are related to legal, professional advisory fees and other transaction costs incurred primarily associated with the Luxfer Transaction in the three and twelve months ended December 31, 2018 and as a result of the IPO by way of Secondary Offering in the three and twelve months ended December 31, 2017. These charges were included in selling, general, and administration expense.
  • Represents insurance proceeds on claims associated with the 2015 fire at the Silmet facility and other non-recurring transactions. Neo has removed these from net income to provide comparability with historic periods.
  • Neo reports non-IFRS measures such as “Adjusted Net Income”, “Adjusted Earnings per Share”, “Adjusted EBITDA”, “Adjusted EBITDA Margin” and “EBITDA”. Please see information on this and other non-IFRS measures in the “Non-IFRS Measures” section of this new release and in the MD&A, available on Neo’s website neomaterials.com and on SEDAR at www.sedar.com.

 

About Neo Performance Materials

Neo Performance Materials is a global leader in the innovation and manufacturing of rare earth and rare metal-based functional materials, which are essential inputs to high technology, high growth, future-facing industries. 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, US; and Beijing, China. Neo operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea. For more information, please visit www.neomaterials.com.

 

Information Contacts

Ali Mahdavi
Investor Relations
(416) 962-3300
ir@neomaterials.com
www.neomaterials.com

Jim Sims
Media Relations
(303) 503-6203
media@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 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 statements in this discussion include, but are not limited to: expectations regarding certain of Neo’s future results and information, including, among other things, revenue, expenses, sales growth, capital expenditures, and operations; statements with respect to 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; impact of recently adopted accounting pronouncements; risk factors relating to intellectual property protection and intellectual property litigation; and, expectations concerning any remediation efforts to Neo’s design of its internal controls over financial reporting and disclosure controls and procedures. 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. 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 that are available under Neo’s profile at www.sedar.com.