Livent Releases Fourth Quarter And Full Year 2020 Results

PHILADELPHIA, Feb. 18, 2021 /PRNewswire/ --

-- Increased Volumes, Higher Realized Pricing and Lower Costs Drove Sequential Improvement --
-- Announces Multi-Year Supply Agreement with BMW Group --
-- Expands on New Sustainability Goals --
-- Provides Full Year 2021 Outlook --

Livent Corporation (NYSE: LTHM) today reported results for the fourth quarter and full year of 2020.

Fourth quarter 2020 revenue was $82.2 million, a sequential improvement over the third quarter of 13% driven by higher volumes sold and better realized pricing. Reported GAAP net loss was $5 million, or a loss of 3 cents per diluted share. Fourth quarter 2020 Adjusted EBITDA was $5.6 million and adjusted loss per share was 2 cents per diluted share, with both sequential improvements due to higher sales and lower costs from reduced third-party carbonate usage.

For the full year, Livent reported revenue of $288.2 million and GAAP net loss of $19 million, or a loss of 13 cents per diluted share. Full year Adjusted EBITDA was $22.3 million and adjusted loss per share was 5 cents per diluted share.

Key Developments

Today, Livent announced a multi-year supply agreement with BMW Group to deliver both lithium hydroxide and carbonate. Livent has already begun delivering product for qualification and commercial volumes are expected to begin in 2022.

Additionally, last week Livent publicly announced its new sustainability goals, having successfully achieved nearly all of its previous sustainability targets five years ahead of schedule. These new goals are highlighted by a commitment to carbon neutrality by 2040, a path to 100% renewable energy use and an ongoing focus on sustainable water use. They reflect the priorities of Livent's customers, communities, investors, employees and other stakeholders, as well as the centrality of sustainability in the company's operations. Livent is determined to lead the way in continuing to prioritize responsible operations and transparency across the lithium industry.

"This key partnership with the BMW Group will help secure long-term lithium supply for its electric vehicle fleet," said Paul Graves, president and chief executive officer of Livent. "Multi-year, multi-application agreements with premier OEMs, like BMW Group, reflect Livent's position as a global leader in the lithium industry with a differentiated product offering, proven track record and sustainability profile."

Guidance and Outlook( (1))

For full year 2021, Livent expects revenue to be in the range of $335 million to $365 million and Adjusted EBITDA to be in the range of $40 million to $60 million, based on higher volumes and slightly lower average pricing across its lithium products. Livent also expects lower costs in 2021, driven in part by reduced third-party carbonate usage. Livent continues to evaluate the timing of the restart of its capital expansion plans.

"We are encouraged by the strong growth in electric vehicle sales in 2020, setting record highs despite significant COVID-19 related disruption to global supply chains and the end-consumer," continued Graves. "We expect the positive lithium market conditions that started to appear in the fourth quarter will continue in 2021. The extent of demand growth for lithium over the coming years is becoming more certain, behind the increasing support for electrification from OEMs, governments and consumers alike. Given Livent's differentiated position and global capabilities, we believe we will continue to be a partner of choice and are well positioned to take advantage of this opportunity for years to come."

Supplemental Information
In this press release, Livent uses the financial measures Adjusted EBITDA and adjusted earnings (loss) per diluted share. These terms are not calculated in accordance with generally accepted accounting principles (GAAP). Definitions of these terms, as well as a reconciliation to the most directly comparable financial measure calculated and presented in accordance with GAAP, are provided on our website: ir.livent.com. Such reconciliations are also set forth in the financial tables that accompany this press release.

About Livent
For nearly eight decades, Livent has partnered with its customers to safely and sustainably use lithium to power the world. Livent is one of only a small number of companies with the capability, reputation, and know-how to produce high-quality finished lithium compounds that are helping meet the growing demand for lithium. The company has one of the broadest product portfolios in the industry, powering demand for green energy, modern mobility, the mobile economy, and specialized innovations, including light alloys and lubricants. Livent employs more than 900 people throughout the world and operates manufacturing sites in the United States, England, India, China and Argentina. For more information, visit Livent.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this news release are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "will continue to," "will likely result," "should," "expect," "expects," "intends," "plans," "anticipates," "believe," "believes," "estimates," "predicts," "potential," "continue," "could," "forecast," "future," "is confident that," "plans," or "projects," the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to risks, uncertainties and assumptions about Livent, may include projections of Livent's future financial performance, Livent's anticipated growth strategies and anticipated trends in Livent's business. These statements are only predictions based on Livent's current expectations and projections about future events. There are important factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Currently, one of the most significant factors is the adverse effect of the current coronavirus ("COVID-19") pandemic on our business. The ultimate extent to which COVID-19 impacts us will depend on future developments, which are highly uncertain and cannot be predicted with confidence, including the scope, severity and duration of the pandemic, the actions taken to contain the pandemic or mitigate its impact, and the direct and indirect economic effects of the pandemic and containment measures, among others. Additional factors that could cause Livent's actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements include a decline in the growth in demand for electric vehicles; volatility in the price for performance lithium compounds; adverse global economic conditions; competition; quarterly and annual fluctuations of our operating results; risks relating to Livent's planned production expansion and related capital expenditures, including any temporary suspension of our expansion efforts; the potential development and adoption of battery technologies that do not rely on performance lithium compounds as an input; liquidity and access to credit; reduced customer demand, or delays in growth of customer demand, for higher performance lithium compounds; the success of Livent's research and development efforts; risks inherent in international operations and sales, including political, financial and operational risks specific to Argentina, China and other countries where Livent has active operations; customer concentration and the delay or loss of, or significant reduction in orders from, large customers; failure to satisfy customer quality standards; fluctuations in the price of energy and certain raw materials; employee attraction and retention; union relations; cybersecurity breaches; our ability to protect our intellectual property rights; the lack of proven reserves; legal and regulatory proceedings; including any shareholder lawsuits; compliance with environmental, health and safety laws; changes in tax laws; risks related to our separation from FMC Corporation; risks related to ownership of our common stock, including price fluctuations and lack of dividends; events outside our control that could prevent us from achieving our sustainability goals; as well as the other factors described under the caption entitled "Risk Factors" in Livent's 2019 Form 10-K filed with the Securities and Exchange Commission on February 28, 2020, our Current Report on Form 8-K filed with the Securities and Exchange Commission on April 6, 2020 and our subsequent Forms 10-Q filed with the Securities and Exchange Commission. Although Livent believes the expectations reflected in the forward-looking statements are reasonable, Livent cannot guarantee future results, level of activity, performance or achievements. Moreover, neither Livent nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. Livent is under no duty to update any of these forward-looking statements after the date of this news release to conform its prior statements to actual results or revised expectations.

    1. Although we provide a forecast for Adjusted EBITDA, we are not able to
       forecast the most directly comparable measure calculated and presented in
       accordance with GAAP.  Certain elements of the composition of the GAAP
       amount are not predictable, making it impractical for us to forecast such
       GAAP measure or to reconcile corresponding non-GAAP financial measure to
       such GAAP measure without unreasonable efforts.  For the same reason, we
       are unable to address the probable significance of the unavailable
       information.  Such elements include, but are not limited to,
       restructuring, transaction related charges, and related cash activity. 
       As a result, no GAAP outlook is provided.

Media Contact: Juan Carlos Cruz +1.215.299.6170
Juan.Carlos.Cruz@livent.com
Investor Contact: Daniel Rosen +1.215.299.6208
daniel.rosen@livent.com


                                                                
           
              
                LIVENT CORPORATION

                                                                                       ---

                                                       
            
             
                CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                       ---

                                                        
            
             (Unaudited, in millions, except per share data)




                                                 Three Months Ended                                  Twelve Months Ended


                                  
           
             December 31,                  
            
               December 31,

                                                                                                 ---

                                     2020                          2019                     2020                           2019

                                                                                                                         ---


     Revenue                                 $
          82.2                                         $
            78.4                  $
        288.2    $
       388.4



     Costs of sales                 73.0                                     58.3                                       251.4            273.5




     Gross margin                    9.2                                     20.1                                        36.8            114.9



      Selling, general and
       administrative expenses       13.5                                     11.3                                        44.6             40.5


      Research and development
       expenses                       0.9                                      0.8                                         3.7              3.3


      Restructuring and other
       charges                        0.6                                      1.4                                        10.7              6.2


      Separation-related costs      (1.9)                                     0.9                                       (1.1)             6.3



      Total costs and expenses       86.1                                     72.7                                       309.3            329.8



      (Loss)/income from
       operations before loss on
       debt extinguishment,
       equity in net loss of
       unconsolidated affiliate,
       interest expense, net and
       income taxes                 (3.9)                                     5.7                                      (21.1)            58.6


      Loss on debt extinguishment       -                                                                                0.1


      Equity in net loss of
       unconsolidated affiliate       0.1                                      0.8                                         0.5              0.8


      Interest expense, net           1.7                                                                                 3.7



      (Loss)/income from
       operations before income
       taxes                        (5.7)                                     4.9                                      (25.4)            57.8


      Income tax
       (benefit)/expense            (0.7)                                     5.1                                       (6.5)             7.6




     Net (loss)/income                      $
          (5.0)                                       $
            (0.2)                $
        (18.9)    $
       50.2



      Net (loss)/income per
       weighted average share -
       basic                                $
          (0.03)                          
            $                                  $
        (0.13)    $
       0.34


      Net (loss)/income per
       weighted average share -
       diluted                              $
          (0.03)                          
            $                                  $
        (0.13)    $
       0.34


      Weighted average common
       shares outstanding -basic    146.3                                    146.0                                       146.2            146.0


      Weighted average common
       shares outstanding -
       diluted                      146.3                                    146.7                                       146.2            146.4


                                                                                                        
           
                
                  LIVENT CORPORATION

                                                                                                                                ---

                                                                                             
            
             
                  RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

                                                                                                                                ---



                                                                                       
             
            RECONCILIATION OF NET (LOSS)/INCOME (GAAP) TO ADJUSTED EBITDA (NON-GAAP)


                                                                                                                
              
                (Unaudited)





     The table below provides a reconciliation of Net (loss)/income to Adjusted EBITDA.




                                                                              Three Months Ended                                          Twelve Months Ended


                                                                                 December 31,                                                 December 31,

                                                                                                                                      ---

                   (In Millions)                       2020                                        2019                   2020                                          2019

                                                                                                                                                                      ---

                   Net (loss)/income (GAAP)                   $
              
                (5.0)                                   $
              
                (0.2)                      $
        
       (18.9)    $
       
       50.2



     Add back:


      Interest expense, net                             1.7                                                                                                            3.7


      Income tax
       (benefit)/expense                              (0.7)                                                 5.1                                                      (6.5)                       7.6


      Depreciation and
       amortization                                     7.3                                                  5.4                                                       25.0                       20.9



      EBITDA (Non-GAAP) (1)                             3.3                                                 10.3                                                        3.3                       78.7



     Add back:


      Certain Argentina
       remeasurement losses (a)                         2.2                                                  2.7                                                        6.6                        7.9


      Restructuring and other
       charges (b)                                      0.6                                                  1.4                                                       10.7                        6.2


      Separation-related costs
       (c)                                            (1.9)                                                 0.9                                                      (1.1)                       6.3


      COVID-19 related costs (d)                        1.5                                                                                                            3.2


      Loss on debt extinguishment
       (e)                                                -                                                                                                           0.1



     Other loss (f)                                  (0.1)                                                 0.7                                                      (0.5)                       0.7



                   Adjusted EBITDA (Non-GAAP)
                    (1)                                        $
              
                5.6                                     $
              
                16.0                         $
       
        22.3     $
       
       99.8




              (1)              In addition to net
                                  income, as
                                  determined in
                                  accordance with
                                  U.S. GAAP, we
                                  evaluate
                                  operating
                                  performance using
                                  certain non-GAAP
                                  measures such as
                                  EBITDA, which we
                                  define as net
                                  income plus
                                  interest expense,
                                  net, income tax
                                  expense/
                                  (benefit),
                                  depreciation, and
                                  amortization, and
                                  Adjusted EBITDA,
                                  which we define
                                  as EBITDA
                                  adjusted for
                                  certain Argentina
                                  remeasurement
                                  losses/(gains),
                                  restructuring and
                                  other charges/
                                  (income),
                                  separation-
                                  related costs,
                                  COVID-19 related
                                  costs and other
                                  losses/(gains).
                                  Management
                                  believes the use
                                  of these non-
                                  GAAP measures
                                  allows management
                                  and investors to
                                  compare more
                                  easily the
                                  financial
                                  performance of
                                  its underlying
                                  business from
                                  period to period.
                                  The non-GAAP
                                  information
                                  provided may not
                                  be comparable to
                                  similar measures
                                  disclosed by
                                  other companies
                                  because of
                                  differing methods
                                  used by other
                                  companies in
                                  calculating
                                  EBITDA and
                                  Adjusted EBITDA.
                                  These measures
                                  should not be
                                  considered as a
                                  substitute for
                                  net income or
                                  other measures of
                                  performance or
                                  liquidity
                                  reported in
                                  accordance with
                                  U.S. GAAP. The
                                  above table
                                  reconciles EBITDA
                                  and Adjusted
                                  EBITDA from net
                                  income.


               (a)               Represents impact
                                  of currency
                                  fluctuations on
                                  tax assets and
                                  liabilities and
                                  on long-term
                                  monetary assets
                                  associated with
                                  our capital
                                  expansion, as
                                  well as
                                  significant
                                  currency
                                  devaluations. The
                                  remeasurement
                                  gains/(losses)
                                  are included
                                  within "Cost of
                                  sales" in our
                                  condensed
                                  consolidated
                                  statement of
                                  operations but
                                  are excluded from
                                  our calculation
                                  of Adjusted
                                  EBITDA because
                                  of: i.) their
                                  nature as income
                                  tax related; ii.)
                                  their association
                                  with long-term
                                  capital projects
                                  which will not be
                                  operational until
                                  future periods;
                                  or iii.) the
                                  severity of the
                                  devaluations and
                                  their immediate
                                  impact on our
                                  operations in the
                                  country.


               (b)               We continually
                                  perform strategic
                                  reviews and
                                  assess the return
                                  on our business.
                                  This sometimes
                                  results in
                                  management
                                  changes or in a
                                  plan to
                                  restructure the
                                  operations of our
                                  business. As part
                                  of these
                                  restructuring
                                  plans, demolition
                                  costs and write-
                                  downs of long-
                                  lived assets may
                                  occur. Also
                                  includes legal
                                  fees related to
                                  IPO securities
                                  litigation.


               (c)               Represents legal,
                                  professional,
                                  transaction
                                  related fees and
                                  other separation-
                                  related activity.


               (d)               Represents
                                  incremental costs
                                  associated with
                                  COVID-19
                                  recorded in "Cost
                                  of sales" in the
                                  consolidated
                                  statements of
                                  operations,
                                  including but not
                                  limited to,
                                  incremental
                                  quarantine
                                  related
                                  absenteeism,
                                  incremental
                                  facility cleaning
                                  costs, pandemic
                                  related supplies
                                  and personal
                                  protective
                                  equipment for
                                  employees, among
                                  other costs;
                                  offset by
                                  economic relief
                                  provided by
                                  foreign
                                  governments.


               (e)               Represents the
                                  partial write off
                                  of deferred
                                  financing costs
                                  for the temporary
                                  reduction in
                                  borrowing
                                  capacity related
                                  to the First
                                  Amendment
                                  excluded from our
                                  calculation of
                                  Adjusted EBITDA
                                  because the loss
                                  is nonrecurring.


               (f)               Represents the
                                  portion of our
                                  nonrefundable
                                  prepaid research
                                  and development
                                  costs advanced to
                                  our
                                  unconsolidated
                                  affiliate
                                  included in
                                  "Equity in net
                                  (earnings)/loss
                                  of unconsolidated
                                  affiliate" in our
                                  consolidated
                                  statements of
                                  operations but
                                  excluded from our
                                  calculation of
                                  Adjusted EBITDA
                                  because the costs
                                  represent future
                                  research and
                                  development
                                  activities of the
                                  affiliate which
                                  have not occurred
                                  as of December
                                  31, 2019.


                                                
        
     RECONCILIATION OF NET LOSS (GAAP) TO ADJUSTED AFTER-TAX LOSS (NON-GAAP)


                                                             
              
                (Unaudited)




                                                            Three Months Ended                                                       Twelve Months Ended


                                                                December 31,                                                          December 31,

                                                                                                                                ---

                   (In Millions, except per share
                    amounts)                                              2020                                                  2020

                                                                                                                                ---

                   Net loss (GAAP)                                                $
              
                (5.0)                                          $
       
       (18.9)



     Special charges:


      Certain Argentina
       remeasurement losses(a)                                             2.2                                                     6.6


      Restructuring and other
       charges (b)                                                         0.6                                                    10.7


      Separation-related costs (c)                                       (1.9)                                                  (1.1)


      COVID-19 related costs (d)                                           1.5                                                     3.2


      Loss on debt extinguishment
       (e)                                                                   -                                                    0.1



     Other loss (f)                                                     (0.1)                                                  (0.5)


      Non-GAAP tax adjustments (g)                                       (0.5)                                                  (8.0)



                   Adjusted after-tax loss (Non-
                    GAAP) (1)                                                     $
              
                (3.2)                                           $
       
       (7.9)





                   Diluted loss per common share
                    (GAAP)                                                       $
              
                (0.03)                                          $
       
       (0.13)


      Special charges per diluted share, before tax:


      Certain Argentina
       remeasurement losses, per
       diluted share                                                      0.02                                                    0.05


      Restructuring and other
       charges, per diluted share                                            -                                                   0.07


      Separation-related costs, per
       diluted share                                                    (0.01)                                                 (0.01)


      COVID-19 related costs, per
       diluted share                                                      0.01                                                    0.02


      Non-GAAP tax adjustments per
       diluted share                                                    (0.01)                                                 (0.05)



                   Diluted adjusted after-tax
                    loss per share (Non-GAAP)
                              (1)                                               $
              
                (0.02)                                          $
       
       (0.05)



      Weighted average number of
       shares outstanding used in
       diluted adjusted after-tax
       loss per share computations
       (GAAP) (2)                                                        146.3                                                   146.2




              (1)              The company
                                  believes that the
                                  Non-GAAP
                                  financial
                                  measures
                                  "Adjusted after-
                                  tax earnings/
                                  (loss)" and
                                  "Diluted adjusted
                                  after-tax
                                  earnings/(loss)
                                  per share"
                                  provide useful
                                  information about
                                  the company's
                                  operating results
                                  to management,
                                  investors and
                                  securities
                                  analysts.
                                  Adjusted after-
                                  tax earnings/
                                  (loss) excludes
                                  the effects of
                                  special charges
                                  and tax-related
                                  adjustments. The
                                  company also
                                  believes that
                                  excluding the
                                  effects of these
                                  items from
                                  operating results
                                  allows management
                                  and investors to
                                  compare more
                                  easily the
                                  financial
                                  performance of
                                  its underlying
                                  business from
                                  period to period.
                                  Diluted adjusted
                                  after-tax
                                  earnings/(loss)
                                  per share (Non-
                                  GAAP) is
                                  calculated using
                                  weighted average
                                  common shares
                                  outstanding -
                                  diluted (GAAP).



              (2)              For the three and
                                  twelve months
                                  ended December
                                  31, 2020,
                                  weighted average
                                  dilutive share
                                  equivalents
                                  associated with
                                  the 2025 Notes of
                                  38.7 million and
                                  15.1 million,
                                  respectively,
                                  were excluded
                                  from the"Weighted
                                  average number of
                                  shares
                                  outstanding used
                                  in diluted
                                  adjusted after-
                                  tax loss per
                                  share
                                  computations
                                  (GAAP)"
                                  calculation
                                  because the
                                  result would have
                                  been
                                  antidilutive.


               (a)               Represents charges
                                  related to
                                  currency
                                  fluctuations on
                                  tax assets and
                                  liabilities and
                                  on long-term
                                  monetary assets
                                  associated with
                                  our capital
                                  expansion, as
                                  well as
                                  significant
                                  currency
                                  devaluations. The
                                  remeasurement
                                  gains/(losses)
                                  are included
                                  within "Cost of
                                  sales" in our
                                  condensed
                                  consolidated
                                  statement of
                                  operations but
                                  are excluded from
                                  our calculation
                                  of Adjusted
                                  EBITDA because
                                  of: i.) their
                                  nature as income
                                  tax related; ii.)
                                  their association
                                  with long-term
                                  capital projects
                                  which will not be
                                  operational until
                                  future periods;
                                  or iii.) the
                                  severity of the
                                  devaluations and
                                  their immediate
                                  impact on our
                                  operations in the
                                  country.


               (b)               We continually
                                  perform strategic
                                  reviews and
                                  assess the return
                                  on our business.
                                  This sometimes
                                  results in
                                  management
                                  changes or in a
                                  plan to
                                  restructure the
                                  operations of our
                                  business. As part
                                  of these
                                  restructuring
                                  plans, demolition
                                  costs and write-
                                  downs of long-
                                  lived assets may
                                  occur. Also
                                  includes legal
                                  fees related to
                                  IPO securities
                                  litigation.


               (c)               Represents legal,
                                  professional,
                                  transaction
                                  related fees and
                                  other separation-
                                  related activity.


               (d)               Represents
                                  incremental costs
                                  associated with
                                  COVID-19
                                  recorded in "Cost
                                  of sales" in the
                                  condensed
                                  consolidated
                                  statement of
                                  operations,
                                  including but not
                                  limited to,
                                  incremental
                                  quarantine
                                  related
                                  absenteeism,
                                  incremental
                                  facility cleaning
                                  costs, pandemic
                                  related supplies
                                  and personal
                                  protective
                                  equipment for
                                  employees, among
                                  other costs;
                                  offset by
                                  economic relief
                                  provided by
                                  foreign
                                  governments.


               (e)               Represents the
                                  partial write off
                                  of deferred
                                  financing costs
                                  for the temporary
                                  reduction in
                                  borrowing
                                  capacity related
                                  to the First
                                  Amendment
                                  excluded from our
                                  calculation of
                                  Adjusted EBITDA
                                  because the loss
                                  is nonrecurring.


               (f)               Represents the
                                  portion of our
                                  nonrefundable
                                  prepaid research
                                  and development
                                  costs advanced to
                                  our
                                  unconsolidated
                                  affiliate
                                  included in
                                  "Equity in net
                                  (earnings)/loss
                                  of unconsolidated
                                  affiliate" in our
                                  consolidated
                                  statements of
                                  operations but
                                  excluded from our
                                  calculation of
                                  Adjusted EBITDA
                                  because the costs
                                  represent future
                                  research and
                                  development
                                  activities of the
                                  affiliate which
                                  have not occurred
                                  as of December
                                  31, 2019.


               (g)               The company
                                  excludes the GAAP
                                  tax provision,
                                  including
                                  discrete items,
                                  from the non-
                                  GAAP measure of
                                  income, and
                                  instead includes
                                  a non-GAAP tax
                                  provision based
                                  upon the annual
                                  non-GAAP
                                  effective tax
                                  rate. The GAAP
                                  tax provision
                                  includes certain
                                  discrete tax
                                  items including,
                                  but not limited
                                  to: income tax
                                  expenses or
                                  benefits that are
                                  not related to
                                  operating results
                                  in the current
                                  year; tax
                                  adjustments
                                  associated with
                                  fluctuations in
                                  foreign currency
                                  remeasurement of
                                  certain foreign
                                  operations;
                                  certain changes
                                  in estimates of
                                  tax matters
                                  related to prior
                                  fiscal years;
                                  certain changes
                                  in the
                                  realizability of
                                  deferred tax
                                  assets and
                                  related interim
                                  accounting
                                  impacts; and
                                  changes in tax
                                  law. Management
                                  believes
                                  excluding these
                                  discrete tax
                                  items assists
                                  investors and
                                  securities
                                  analysts in
                                  understanding the
                                  tax provision and
                                  the effective tax
                                  rate related to
                                  operating results
                                  thereby providing
                                  investors with
                                  useful
                                  supplemental
                                  information about
                                  the company's
                                  operational
                                  performance.The
                                  income tax
                                  expense/
                                  (benefit) on
                                  special charges/
                                  (income) is
                                  determined using
                                  the applicable
                                  rates in the
                                  taxing
                                  jurisdictions in
                                  which the special
                                  charge or income
                                  occurred and
                                  includes both
                                  current and
                                  deferred income
                                  tax expense/
                                  (benefit) based
                                  on the nature of
                                  the non-GAAP
                                  performance
                                  measure.


                                            Three Months Ended               Twelve Months Ended


                                               December 31,                      December 31,



                  (in Millions)                           2020                               2020



                  Non-GAAP tax adjustments:


     Income tax benefit on
      restructuring, Separation-
      related and other corporate
      costs                                                         $
       0.4                                  $
      (2.5)


     Revisions to our tax
      liabilities due to
      finalization of prior year
      tax returns                                          0.6                                       1.0


     Foreign currency remeasurement
      and other discrete items                           (2.3)                                    (8.0)


     Other discrete items                                  0.8                                       1.5



                  Total Non-GAAP tax
                   adjustments                                 $
     
        (0.5)                             $
     
        (8.0)


                            RECONCILIATION OF CASH PROVIDED BY OPERATING ACTIVITIES (GAAP) TO ADJUSTED CASH FROM OPERATIONS (NON-
                                                                             GAAP)


                                                 
              
                (Unaudited)




                                                                    Twelve Months Ended


                                                                        December 31,



                  (In Millions)               2020                                         2019

                                                                                           ---

     Cash provided by
      operating activities
      (GAAP)                                                       $
              6.3                                                 $
     58.1


     Restructuring and
      other charges                            7.4                                                      4.1


     Separation-related
      spending (a)                           (0.8)                                                    26.8


     COVID-19 related
      costs (b)                                3.2


     Other loss (c)                          (1.0)                                                     0.7


                  Adjusted cash from
                   operations (Non-
                   GAAP) (1)                         $
              
                15.1                                         $
         
       89.7




              (1)              The company
                                  believes that the
                                  non-GAAP
                                  financial measure
                                  "Adjusted cash
                                  from operations"
                                  provides useful
                                  information about
                                  the company's
                                  cash flows to
                                  investors and
                                  securities
                                  analysts.
                                  Adjusted cash
                                  from operations
                                  excludes the
                                  effects of
                                  transaction-
                                  related cash
                                  flows. The
                                  company also
                                  believes that
                                  excluding the
                                  effects of these
                                  items from cash
                                  provided by
                                  operating
                                  activities allows
                                  management and
                                  investors to
                                  compare more
                                  easily the cash
                                  flows from period
                                  to period.


               (a)               Represents
                                  reimbursement to
                                  FMC for 2018
                                  income taxes and
                                  transaction
                                  related costs,
                                  pursuant to the
                                  Tax Matters
                                  Agreement, for
                                  which we accrued
                                  liabilities at
                                  December 31,
                                  2018. Also
                                  includes
                                  Separation-
                                  related costs.


               (b)               Represents
                                  incremental costs
                                  associated with
                                  COVID-19
                                  recorded in "Cost
                                  of sales" in the
                                  consolidated
                                  statement of
                                  operations,
                                  including but not
                                  limited to,
                                  incremental
                                  quarantine
                                  related
                                  absenteeism,
                                  incremental
                                  facility cleaning
                                  costs, pandemic
                                  related supplies
                                  and personal
                                  protective
                                  equipment for
                                  employees, among
                                  other costs;
                                  offset by
                                  economic relief
                                  provided by
                                  foreign
                                  governments.


               (c)               Represents "Equity
                                  in net loss of
                                  unconsolidated
                                  affiliate" and
                                  the portion of
                                  our nonrefundable
                                  prepaid research
                                  and development
                                  costs advanced to
                                  our
                                  unconsolidated
                                  affiliate in the
                                  fourth quarter of
                                  2019 included in
                                  "Cash provided by
                                  investing
                                  activities"
                                  (GAAP) in our
                                  consolidated
                                  statement of cash
                                  flows but
                                  excluded from our
                                  calculation
                                  "Adjusted cash
                                  provided by
                                  operations" in
                                  the same period
                                  because the costs
                                  represented
                                  future research
                                  and development
                                  expenditures
                                  related to our
                                  unconsolidated
                                  affiliate.


                                 
     
                RECONCILIATION OF LONG-TERM DEBT (GAAP) AND CASH AND CASH EQUIVALENTS (GAAP) TO


                                                      
              
                NET DEBT (NON-GAAP)


                                                          
              
                (Unaudited)




                  (In Millions)      December 31, 2020                                                            December 31, 2019

                                                                                                                                ---

     Long-term debt
      (GAAP) (a)                                                      $
              236.7                                                        $
     154.6


     Less: Cash and
      cash equivalents
      (GAAP)                                    (11.6)                                                                              (16.8)



                  Net debt (Non-
                   GAAP) (1)                             $
              
                225.1                                                    $
     
       137.8




              (1)              The company
                                  believes that the
                                  non-GAAP
                                  financial measure
                                  "Net debt"
                                  provides useful
                                  information about
                                  the company's
                                  cash flows and
                                  liquidity to
                                  investors and
                                  securities
                                  analysts.


               (a)               As of December 31,
                                  2020 and 2019,
                                  the Company had
                                  no debt maturing
                                  within one year.


                                       
         
                
                  LIVENT CORPORATION

                                                             ---

                                     
       
           
                  CONDENSED CONSOLIDATED BALANCE SHEETS

                                                             ---

                                             
              
                (Unaudited)




                   (In Millions)           December 31, 2020                                                 December 31, 2019

                                                                                                      ---

      Cash and cash
       equivalents                                                           $
              11.6                                    $
      16.8


      Trade receivables,
       net of allowance of
       approximately $0.4
       in 2020 and $0.3 in
       2019                                             76.3                                            90.0


      Inventories                                      105.6                                           113.4


      Other current assets                              56.3                                            51.8


      Total current assets                             249.8                                           272.0



      Investments                                       23.8                                             2.2


      Property, plant and
       equipment, net                                  545.3                                           468.8


      Right of use assets
       -operating leases,
       net                                              16.1                                            16.9


      Deferred income
       taxes                                            13.4                                             8.2


      Other assets                                      88.4                                            91.5


                   Total assets                                $
              
                936.8                               $
     
        859.6





      Accounts payable,
       trade and other                                                       $
              43.9                                    $
      83.1


      Other current
       liabilities                                      38.4                                            39.4


      Total current
       liabilities                                      82.3                                           122.5



      Long-term debt,
       less current
       portion                                         236.7                                           154.6


      Long-term
       liabilities                                      52.0                                            38.5



     Equity                                           565.8                                           544.0



                   Total liabilities
                    and equity                                 $
              
                936.8                               $
     
        859.6


                     
            
               
                  LIVENT CORPORATION

                                             ---

      
              
              
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                             ---

                              
             
                (Unaudited)




                                                    Twelve Months Ended December 31,



                 (In
                  Millions)        2020                           2019

                                                                  ---

     Cash
     provided
     by
     operating
     activities                           $
              6.3                                 $
     58.1



     Cash
     required
     by
     investing
     activities                 (131.1)                                   (190.0)



     Cash
     provided
     by
     financing
     activities                   119.1                                      120.5



     Effect
     of
     exchange
     rate
     changes
     on
     cash                           0.5                                      (0.1)



     Decrease
     in
     cash
     and
     cash
     equivalents                  (5.2)                                    (11.5)


     Cash
     and
     cash
     equivalents,
     beginning
     of
     year                          16.8                                       28.3



     Cash
     and
     cash
     equivalents,
     end
     of
     period                              $
              11.6                                 $
     16.8

View original content to download multimedia:http://www.prnewswire.com/news-releases/livent-releases-fourth-quarter-and-full-year-2020-results-301231262.html

SOURCE Livent Corporation