Accessibility Statement Skip Navigation
  • Resources
  • Investor Relations
  • Journalists
  • Webcasts
  • Français
  • my CNW 
    • Login
    • Register
  • Client Login
  • Sign Up
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
Search
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.

News Releases

view all
    Advanced Search
    • News in Focus
        • Browse News Releases

        • All News Releases
        • All Public Company
        • News Releases Overview

        • Multimedia Gallery

        • All Multimedia
        • All Photos
        • All Videos
        • Multimedia Gallery Overview

        • Trending Topics

        • All Trending Topics
    • Business
        • Auto & Transportation

        • Aerospace, Defense
        • Air Freight
        • Airlines & Aviation
        • Automotive
        • Maritime & Shipbuilding
        • Railroads and Intermodal Transportation
        • Supply Chain/Logistics
        • Transportation, Trucking & Railroad
        • Travel
        • Trucking and Road Transportation
        • Auto & Transportation Overview

        • View All Auto & Transportation

        • Business Technology

        • Blockchain
        • Broadcast Tech
        • Computer & Electronics
        • Computer Hardware
        • Computer Software
        • Data Analytics
        • Electronic Commerce
        • Electronic Components
        • Electronic Design Automation
        • Financial Technology
        • High Tech Security
        • Internet Technology
        • Nanotechnology
        • Networks
        • Peripherals
        • Semiconductors
        • Business Technology Overview

        • View All Business Technology

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Financial Services & Investing

        • Accounting News & Issues
        • Acquisitions, Mergers and Takeovers
        • Banking & Financial Services
        • Bankruptcy
        • Bond & Stock Ratings
        • Conference Call Announcements
        • Contracts
        • Cryptocurrency
        • Dividends
        • Earnings
        • Earnings Forecasts & Projections
        • Financing Agreements
        • Insurance
        • Investments Opinions
        • Joint Ventures
        • Mutual Funds
        • Private Placement
        • Real Estate
        • Restructuring & Recapitalization
        • Sales Reports
        • Shareholder Activism
        • Shareholder Meetings
        • Stock Offering
        • Stock Split
        • Venture Capital
        • Financial Services & Investing Overview

        • View All Financial Services & Investing

        • General Business

        • Awards
        • Commercial Real Estate
        • Corporate Expansion
        • Earnings
        • Environmental, Social and Governance (ESG)
        • Human Resource & Workforce Management
        • Licensing
        • New Products & Services
        • Obituaries
        • Outsourcing Businesses
        • Personnel Announcements
        • Real Estate Transactions
        • Residential Real Estate
        • Small Business Services
        • Socially Responsible Investing
        • Surveys, Polls and Research
        • Trade Show News
        • General Business Overview

        • View All General Business

    • Science & Tech
        • Consumer Technology

        • Artificial Intelligence
        • Blockchain
        • Cloud Computing/Internet of Things
        • Computer Electronics
        • Computer Hardware
        • Computer Software
        • Consumer Electronics
        • Cryptocurrency
        • Data Analytics
        • Electronic Commerce
        • Electronic Gaming
        • Financial Technology
        • Mobile Entertainment
        • Multimedia & Internet
        • Peripherals
        • Social Media
        • STEM (Science, Tech, Engineering, Math)
        • Supply Chain/Logistics
        • Wireless Communications
        • Consumer Technology Overview

        • View All Consumer Technology

        • Energy & Natural Resources

        • Alternative Energies
        • Chemical
        • Electrical Utilities
        • Gas
        • General Manufacturing
        • Mining
        • Mining & Metals
        • Oil & Energy
        • Oil and Gas Discoveries
        • Utilities
        • Water Utilities
        • Energy & Natural Resources Overview

        • View All Energy & Natural Resources

        • Environ­ment

        • Conservation & Recycling
        • Environmental Issues
        • Environmental Policy
        • Environmental Products & Services
        • Green Technology
        • Natural Disasters
        • Environment Overview

        • View All Environ­ment

        • Heavy Industry & Manufacturing

        • Aerospace & Defense
        • Agriculture
        • Chemical
        • Construction & Building
        • General Manufacturing
        • HVAC (Heating, Ventilation and Air-Conditioning)
        • Machinery
        • Machine Tools, Metalworking and Metallurgy
        • Mining
        • Mining & Metals
        • Paper, Forest Products & Containers
        • Precious Metals
        • Textiles
        • Tobacco
        • Heavy Industry & Manufacturing Overview

        • View All Heavy Industry & Manufacturing

        • Telecomm­unications

        • Carriers and Services
        • Mobile Entertainment
        • Networks
        • Peripherals
        • Telecommunications Equipment
        • Telecommunications Industry
        • VoIP (Voice over Internet Protocol)
        • Wireless Communications
        • Telecommunications Overview

        • View All Telecomm­unications

    • Lifestyle & Health
        • Consumer Products & Retail

        • Animals & Pets
        • Beers, Wines and Spirits
        • Beverages
        • Bridal Services
        • Cannabis
        • Cosmetics and Personal Care
        • Fashion
        • Food & Beverages
        • Furniture and Furnishings
        • Home Improvement
        • Household, Consumer & Cosmetics
        • Household Products
        • Jewelry
        • Non-Alcoholic Beverages
        • Office Products
        • Organic Food
        • Product Recalls
        • Restaurants
        • Retail
        • Supermarkets
        • Toys
        • Consumer Products & Retail Overview

        • View All Consumer Products & Retail

        • Entertain­ment & Media

        • Advertising
        • Art
        • Books
        • Entertainment
        • Film and Motion Picture
        • Magazines
        • Music
        • Publishing & Information Services
        • Radio & Podcast
        • Television
        • Entertainment & Media Overview

        • View All Entertain­ment & Media

        • Health

        • Biometrics
        • Biotechnology
        • Clinical Trials & Medical Discoveries
        • Dentistry
        • FDA Approval
        • Fitness/Wellness
        • Health Care & Hospitals
        • Health Insurance
        • Infection Control
        • International Medical Approval
        • Medical Equipment
        • Medical Pharmaceuticals
        • Mental Health
        • Pharmaceuticals
        • Supplementary Medicine
        • Health Overview

        • View All Health

        • Sports

        • General Sports
        • Outdoors, Camping & Hiking
        • Sporting Events
        • Sports Equipment & Accessories
        • Sports Overview

        • View All Sports

        • Travel

        • Amusement Parks and Tourist Attractions
        • Gambling & Casinos
        • Hotels and Resorts
        • Leisure & Tourism
        • Outdoors, Camping & Hiking
        • Passenger Aviation
        • Travel Industry
        • Travel Overview

        • View All Travel

    • Policy & Public Interest
        • Policy & Public Interest

        • Advocacy Group Opinion
        • Animal Welfare
        • Canadian Federal Government
        • Canadian Municipal Government
        • Canadian Provincial Government
        • Corporate Social Responsibility
        • Domestic Policy
        • Economic News, Trends, Analysis
        • Education
        • Environmental
        • European Government
        • FDA Approval
        • Federal and State Legislation
        • Federal Executive Branch & Agency
        • Foreign Policy & International Affairs
        • Homeland Security
        • Labor & Union
        • Legal Issues
        • Natural Disasters
        • Not For Profit
        • Patent Law
        • Public Safety
        • Trade Policy
        • Policy & Public Interest Overview

        • View All Policy & Public Interest

    • People & Culture
        • People & Culture

        • Aboriginal, First Nations & Native American
        • African American
        • Asian American
        • Children
        • Diversity, Equity & Inclusion
        • Hispanic
        • Lesbian, Gay & Bisexual
        • Men's Interest
        • People with Disabilities
        • Religion
        • Senior Citizens
        • Veterans
        • Women
        • People & Culture Overview

        • View All People & Culture

    • Advanced Search
    • Explore Our Platform
    • Plan Campaigns
    • Create with AI
    • Distribute Press Releases
    • Report Results
    • Amplify Content
    • IR
    • All Products
    • Become a Client
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • General Enquiries
    • Media
    • Worldwide Offices
    • Hamburger menu
    • Cision Canada
    • Send a Release
    • FR
      • Phone

      • 877-269-7890 from 8 AM - 10 PM ET

      • ALL CONTACT INFO
      • Contact Cision

        877-269-7890
        from 8 AM - 10 PM ET

    • Searching for your content...

      No results found. Please change your search terms and try again.

      News Releases

      view all
      Close menu
    • News
    • Products
    • Contact
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • 3 News in Focus
      • 5 Business
      • 5 Science & Tech
      • 5 Lifestyle & Health
      • 1 Policy & Public Interest
      • 1 People & Culture
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • IR
      • All Products
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      • Become a Client
      • Request a Demo
      • Editorial Bureaus
      • Partnerships
      • General Enquiries
      • Media
      • Worldwide Offices
      • General Enquiries
      • Send a Release
      • Sign Up
      • Resources
      • Investor Relations
      • Journalists
      • Webcasts
      • my CNW
      • GDPR
      Close submenu (News in Focus) News in Focus
      • Browse News Releases
      • Multimedia Gallery
      • Trending Topics
      Close submenu (Business) Business
      • Auto & Transportation
      • Business Technology
      • Entertain­ment & Media
      • Financial Services & Investing
      • General Business
      Close submenu (Science & Tech) Science & Tech
      • Consumer Technology
      • Energy & Natural Resources
      • Environ­ment
      • Heavy Industry & Manufacturing
      • Telecomm­unications
      Close submenu (Lifestyle & Health) Lifestyle & Health
      • Consumer Products & Retail
      • Entertain­ment & Media
      • Health
      • Sports
      • Travel
      Close submenu (Policy & Public Interest) Policy & Public Interest
      • Policy & Public Interest
      Close submenu (People & Culture) People & Culture
      • People & Culture

      Neo Performance Materials Reports Fourth Quarter and Year-End 2022 Results


      News provided by

      Neo Performance Materials, Inc.

      Mar 29, 2023, 07:00 ET

      Share this article

      Share this article


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

      • Q4 2022 revenue of $159.2 million, higher by 3.8% YoY. For the year ended December 31, 2022, Neo's revenue was $640.3 million, an increase of 18.7% YoY, and set another record for annual revenue since Neo's re-emergence as a public company in 2017.
      • Operating income of $6.7 million in the quarter, lower by 47.1% YoY. For the year ended December 31, 2022, operating income was $58.6 million, a decline of 2.1% YoY.
      • Adjusted Net Loss(1) of $5.7 million in the quarter, or $(0.13) per share. For the year ended December 31, 2022, Neo's Adjusted Net Income(1) was $31.8 million, or $0.75 per share.
      • Adjusted EBITDA(1) of $12.4 million in the quarter, lower by 36.8% YoY. For the year ended December 31, 2022, Adjusted EBITDA(1) was $79.0 million, lower by 3.5% YoY.
      • Cash balance of $147.5 million after distributing $13.4 million for the year ended December 31, 2022 in dividends to shareholders.
      • A quarterly dividend of Cdn$0.10 per common share was declared on March 3, 2023 for shareholders of record at March 20, 2023, with a payment date of March 29, 2023.

      TORONTO, March 29, 2023 /CNW/ - Neo Performance Materials Inc. ("Neo", the "Company") (TSX: NEO) released its 2022 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/investors/ and on SEDAR at www.sedar.com.

      "Neo had another record-setting year in 2022, although the second half of 2022 clearly marked a transition to a slowing economic cycle," said Constantine Karayannopoulos, Neo's CEO.  "In spite of relatively volatile markets, Neo made demonstrable progress in 2022 in key areas of critical supplier expansion and improved sustainability at our operations. Most important, we are laying the groundwork for future growth related to high-performance materials used in automobile electrification, improved emission standards, smaller and smarter electronics, cleaner water, and light-weighting of aerospace vehicles. I am appreciative of our customers trust in Neo and for our employees' dedication as we continue this momentum across our strategic growth initiatives in 2023."

      STRATEGIC INITIATIVES IN 2022

      Throughout 2022, Neo launched or completed the following strategic initiatives:             

      • On August 16, 2022, Neo entered into a loan agreement with Export Development Canada ("EDC") for a term loan of up to $75.0 million, to finance the relocation, expansion, and sustainability upgrades to its environmental emissions catalyst manufacturing facility (the "NAMCO Project"). Of the $75.0 million facility, $25.0 million was drawn in the fourth quarter of 2022.
      • On August 22, 2022, Neo announced its intent to acquire an exploration license from Hudson Resources Inc. to pursue development of the Sarfartoq Carbonatite Complex in southwest Greenland, which hosts a mineral deposit enriched in neodymium and praseodymium.
      • To supplement Neo's existing cash position, support working capital levels, and plan for future growth, Neo completed a bought deal treasury offering on September 16, 2022 at Cdn. $15.00 per share, for net proceeds of approximately $47.7 million.
      • On October 13, 2022, Hastings Technology Metals Ltd. ("Hastings") completed its binding Share Purchase Agreement with an affiliate of Oaktree Capital L.P. ("Oaktree") to acquire 8,974,127 common shares of Neo at Cdn. $15.00 per share, for an aggregate purchase price of Cdn. $134.6 million.
      • On October 14, 2022, Neo entered into a non-binding Memorandum of Understanding with Australian Rare Earths Limited ("AR3") to accelerate development of AR3's Koppamurra Rare Earth in western Australia, which is enriched in neodymium, praseodymium, dysprosium and terbium.
      • On November 9, 2022, Neo announced it has been awarded a grant of up to $19.9 million (€18.7 million) from the Government of Estonia under Europe's Just Transition Fund ("JTF") for eligible project costs of up to $104.5 million (€98 million). The terms of the award are guided by the Government of Estonia's regulations on general conditions for granting and using funds from the operational program of the EU cohesion and internal security policy funds for the period 2021-2027 and related regulations, and includes factors such as total eligible costs incurred, and employment created. The grant to Neo is the first such award to any critical materials company in the EU under the JTF program.

      HIGHLIGHTS OF Q4 2022 AND YEAR-END CONSOLIDATED PERFORMANCE

      Neo's consolidated revenue for the year ended December 31, 2022, was $640.3 million, compared to $539.3 million for the year ended December 31, 2021, an increase of $101.0 million or 18.7%.  This marked another record for annual revenue for Neo since re-emerging as a public company in 2017.

      __________________________

      (1) 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 at www.neomaterials.com and on SEDAR at www.sedar.com.


      SELECTED FINANCIAL RESULTS

      TABLE 1: Selected Consolidated Results


      Year-over-Year Comparison

      Quarter-over-Quarter
      Comparison

      ($000s)

      2022

      2021

      Q4 2022

      Q4 2021

      Revenue

      640,298

      539,251

      159,168

      153,414

      Operating income

      58,614

      59,887

      6,727

      12,726

      EBITDA(1)

      76,189

      65,431

      10,121

      12,380

      Adjusted EBITDA(1)

      79,027

      81,915

      12,420

      19,652

      Adjusted EBITDA %(1)

      12.3 %

      15.2 %

      7.8 %

      12.8 %

      _________________________

      (1)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.



      MAGNEQUENCH SEGMENT RESULTS

      TABLE 2: Selected Magnequench Results


      Year-over-Year Comparison

      Quarter-over-Quarter
      Comparison


      2022

      2021

      Q4 2022

      Q4 2021

      Volume (tonnes)

      4,808

      6,090

      1,188

      1,482

      ($000s)





      Revenue

      277,412

      263,753

      57,584

      70,897

      Operating income

      30,538

      38,413

      2,543

      6,608

      EBITDA(1)

      42,178

      49,703

      6,364

      10,463

      Adjusted EBITDA(1)

      40,172

      48,009

      4,788

      9,137

      _________________________

      (1)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.


      Volumes in the Magnequench segment saw a decline with respect to the prior-year period as well as sequentially, driven largely by the spike in COVID-19, which affected the free flow of people and production supplies across many parts of Asia, the occurrence of several natural disasters earlier in 2022 which impacted customer production facilities in Asia, and the on-going semiconductor chip shortage in the automotive and other industries.

      Margins per ton in the Magnequench segment were lower in the fourth quarter of 2022 compared to higher margins achieved earlier in 2022.  Magnequench has pass-through pricing agreements on the vast majority of its sales contracts, and with rare earth magnetic prices having declined from March 2022, Magnequench is beginning to see the reversal of the lead-lag benefit in the latter half of 2022.  The long-term growth outlook for Magnequench's magnetic materials remains strong, and the division's long-term focus remains on the value-add spread margin between the input commodity cost and the value of the functionalized materials that are manufactured.

      CHEMICALS & OXIDES ("C&O") SEGMENT RESULTS

      TABLE 3: Selected C&O Results






      Year-over-Year Comparison

      Quarter-over-Quarter
      Comparison

      ($000s)

      2022

      2021

      Q4 2022

      Q4 2021

      Revenue

      248,011

      212,711

      58,767

      60,389

      Operating income

      22,176

      37,391

      852

      10,207

      EBITDA(1)

      27,952

      29,747

      1,462

      7,656

      Adjusted EBITDA(1)

      28,324

      41,512

      2,614

      11,800

      _________________________

      (1)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.


      Despite the recent decline in rare earth prices, they remain more than 100% higher than prices from the recent past (the two to three years prior to the third quarter of 2020).  The outlook (both in demand and pricing) remains strong for rare earths which is expected to lead to higher dollar value margins for C&O in the long term.  However, the current period was adversely impacted by the immediate and rapid decline of prices while processing higher cost inventory (lead-lag impact).  For the year, C&O recorded a net $3.1 million of provisions for inventories.

      In C&O's environmental emissions catalyst business, volumes in 2022 were consistent compared to the prior year.  Volumes in the fourth quarter of 2022 exceeded volumes in the fourth quarter of 2021, primarily related to lower than normal volumes in the fourth quarter of 2021 as customers were adjusting their supply chains.  Volumes have seen less of an impact from the semiconductor chip shortage and are distributed more globally than Magnequench volumes and thus, have not experienced the same negative pressures on volume trends as some Magnequench products.  C&O's environmentally protective water treatment solutions business continues to grow year over year  with higher volume and new customer adoption, in both the fourth quarter and full year of 2022.

      RARE METALS SEGMENT RESULTS

      TABLE 4: Selected Rare Metals Results


      Year-over-Year Comparison

      Quarter-over-Quarter
      Comparison

      ($000s)

      2022

      2021

      Q4 2022

      Q4 2021

      Revenue

      130,386

      83,604

      43,865

      27,296

      Operating income

      20,978

      6,578

      7,792

      2,410

      EBITDA(1)

      22,119

      9,415

      5,662

      3,401

      Adjusted EBITDA(1)

      24,307

      9,154

      8,995

      3,074

      _________________________

      (1)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 achieved record earnings in 2022, continuing the improvement that started in the fourth quarter of 2021.  Rare Metals experienced strength in pricing for key products such as hafnium and tantalum while also benefiting from lower-cost inventory on hand.  Hafnium prices, in particular, have increased rapidly starting in the fourth quarter of 2021.  The recycling purchases and activities of Rare Metals was particularly impactful to maintaining and growing margins as the scrap material purchased in the same quarter is not rising as fast as selling prices for finished goods.  This was partially offset by Rare Metals not selling some of its niobium oxide products to customers resident in or with connections to Russia, resulting in lower margins and higher inventory on hand at period-end for its niobium oxide products.

      The Rare Metals business continues to make progress in several key strategic initiatives, including selling more products outside of the aerospace industry, expanding its customer base, and diversifying its total end-market exposure.  Sales prices in a number of end markets have recovered and gallium-based products are exhibiting improved market demand. 

      CONFERENCE CALL ON WEDNESDAY MARCH 29, 2023 AT 10 AM EASTERN

      Management will host a teleconference call on Wednesday March 29, 2023 at 10:00 a.m. (Eastern Time) to discuss the fourth quarter 2022 results.  Interested parties may access the teleconference by calling (647) 794-4605 (local) or  (888) 394-8218 (toll free long distance) or by visiting http://cnw.en.mediaroom.com/events. A recording of the teleconference may be accessed by calling (647) 436-0148 (local) or (888) 203-1112  (toll free long distance), and entering pass code 5211088# until April 29, 2023, or by visiting http://cnw.en.mediaroom.com/events.

      NON-IFRS MEASURES

      This news release refers to certain non-IFRS financial measures and ratios such as "Adjusted Net Income", "EBITDA", "Adjusted EBITDA", and "Adjusted EBITDA Margin".  These measures and ratios 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 and ratios 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 and ratios have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Neo's financial information reported under IFRS.  Neo uses non-IFRS financial measures and ratios 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 and ratios 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 definitions of how Neo defines such financial measures and ratios, please see the "Non-IFRS Financial Measures" section of Neo's management's discussion and analysis filing for the year ended December 31, 2022  available on Neo's web site at www.neomaterials.com and on SEDAR at www.sedar.com.

      TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

      ($000s)


      December 31, 2022


      December 31, 2021

      ASSETS





      Current





      Cash and cash equivalents


      $                   147,491


      $                     89,037

      Restricted cash


      1,179


      1,283

      Accounts receivable


      81,409


      65,209

      Inventories


      212,702


      200,954

      Income taxes receivable


      355


      1,667

      Other current assets


      23,279


      19,211

      Total current assets


      466,415


      377,361

      Property, plant and equipment


      75,767


      73,378

      Intangible assets


      42,984


      49,961

      Goodwill


      66,042


      70,082

      Investments


      16,363


      13,759

      Deferred tax assets


      6,956


      6,638

      Other non-current assets


      1,933


      2,903

      Total non-current assets


      210,045


      216,721

      Total assets


      $                   676,460


      $                   594,082






      LIABILITIES AND EQUITY





      Current





      Bank advances and other short-term debt


      $                     17,288


      $                        6,502

      Accounts payable and other accrued charges


      69,093


      94,201

      Income taxes payable


      10,033


      7,059

      Provisions


      1,369


      5,560

      Lease obligations


      1,264


      1,589

      Derivative liability


      28,570


      14,704

      Current portion of long-term debt


      747


      —

      Other current liabilities


      278


      1,455

      Total current liabilities


      128,642


      131,070

      Long term debt


      29,885


      —

      Employee benefits


      489


      1,210

      Provisions


      23,604


      15,127

      Deferred tax liabilities


      13,942


      13,366

      Lease obligations


      813


      1,388

      Other non-current liabilities


      1,442


      1,405

      Total non-current liabilities


      70,175


      32,496

      Total liabilities


      198,817


      163,566

      Non-controlling interest


      3,193


      2,891

      Equity attributable to equity holders of Neo Performance Materials Inc.


      474,450


      427,625

      Total equity


      477,643


      430,516

      Total liabilities and equity


      $                   676,460


      $                   594,082

      See accompanying notes to this table in Neo's Consolidated Financial Statements for the year ended December 31, 2022, 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 year ended and three months ended December 31, 2022 to the year ended and three months ended December 31, 2021:

      ($000s)


      Year Ended December 31,


      Three Months Ended December 31,



      2022


      2021


      2022


      2021

      Revenue


      $      640,298


      $      539,251


      $      159,168


      $      153,414

      Costs of sales









      Costs excluding depreciation and amortization


      481,524


      380,548


      125,275


      111,718

      Depreciation and amortization


      9,406


      8,176


      2,361


      2,405

      Gross profit


      149,368


      150,527


      31,532


      39,291

      Expenses









      Selling, general and administrative


      58,915


      58,445


      16,619


      17,421

      Share-based compensation


      2,483


      4,526


      610


      1,765

      Depreciation and amortization


      7,313


      7,689


      1,784


      1,891

      Research and development


      20,810


      19,859


      4,854


      5,367

      Impairment of assets


      1,233


      121


      938


      121



      90,754


      90,640


      24,805


      26,565

      Operating income


      58,614


      59,887


      6,727


      12,726

      Other expense


      (2,228)


      (9,750)


      (492)


      (4,351)

      Finance cost, net


      (15,259)


      (3,943)


      (11,116)


      (1,523)

      Foreign exchange gain (loss)


      301


      (4,388)


      476


      (2,544)

      Income (loss) from operations before income taxes and equity income of associates


      41,428


      41,806


      (4,405)


      4,308

      Income tax (expense) benefit


      (17,793)


      (9,580)


      (2,022)


      702

      Income (loss) from operations before equity income of associates


      23,635


      32,226


      (6,427)


      5,010

      Equity income (loss) of associates (net of income tax)


      2,783


      3,817


      (735)


      2,253

      Net income (loss)


      $        26,418


      $        36,043


      $        (7,162)


      $          7,263

      Attributable to:









      Equity holders of Neo


      $        25,947


      $        35,177


      $        (7,291)


      $          6,735

      Non-controlling interest


      471


      866


      129


      528



      $        26,418


      $        36,043


      $        (7,162)


      $          7,263

      Earnings (loss) per share attributable to equity holders of Neo:









      Basic


      $             0.62


      $             0.92


      $           (0.16)


      $             0.17

      Diluted


      $             0.61


      $             0.91


      $           (0.16)


      $             0.17

      See Management's Discussion and Analysis for the year ended December 31, 2022, available on Neo's website at www.neomaterials.com and on SEDAR at www.sedar.com.


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

      ($000s)


      Year Ended December 31,


      Three Months Ended December 31,



      2022


      2021


      2022


      2021

      Net income (loss)


      $       26,418


      $       36,043


      $       (7,162)


      $         7,263

      Add back (deduct):









      Finance cost, net


      15,259


      3,943


      11,116


      1,523

      Income tax expense (benefit)


      17,793


      9,580


      2,022


      (702)

      Depreciation and amortization included in costs of sales


      9,406


      8,176


      2,361


      2,405

      Depreciation and amortization included in operating expenses


      7,313


      7,689


      1,784


      1,891

      EBITDA


      76,189


      65,431


      10,121


      12,380

      Adjustments to EBITDA:









      Other expense (1)


      2,228


      9,750


      492


      4,351

      Foreign exchange (gain) loss (2)


      (301)


      4,388


      (476)


      2,544

      Equity (income) loss of associates


      (2,783)


      (3,817)


      735


      (2,253)

      Share-based compensation (3)


      2,483


      4,526


      610


      1,765

      Impairment of assets (4)


      1,233


      121


      938


      121

      Other (recoveries) costs (5)


      (22)


      1,516


      —


      744

      Adjusted EBITDA (6)


      $       79,027


      $       81,915


      $       12,420


      $       19,652

      Adjusted EBITDA Margins (6)


      12.3 %


      15.2 %


      7.8 %


      12.8 %

      Less:









      Capital expenditures


      $       17,470


      $         9,464


      6,372


      2,833

      Free Cash Flow (6)


      $       61,557


      $       72,451


      6,048


      16,819

      Free Cash Flow Conversion (6)


      77.9 %


      88.4 %


      48.7 %


      85.6 %

      Notes:




      (1)

      Represents other expenses resulting from non-operational related activities, including provisions for damages for outstanding legal claims related to historic volumes.  These costs and recoveries are not indicative of Neo's ongoing activities.



      (2)

      Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.



      (3)

      Represents share-based compensation expense in respect of the Plan and the LTIP. 



      (4)

      Represents impairment in property, plant and equipment, long-term asset and prepayment.



      (5)

      These represent primarily legal, professional advisory fees and other transaction costs incurred with respect to non-operating capital structure related transactions and restructuring costs related to management team changes.  Neo has removed these charges to provide comparability with historic periods.



      (6)

      Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash Flow" and "Free Cash Flow Conversion". 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 www.neomaterials.com and on SEDAR at www.sedar.com.


      TABLE 8: RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED NET INCOME (LOSS)

      ($000s)


      Year Ended December 31,


      Three Months Ended December 31,



      2022


      2021


      2022


      2021

      Net income (loss)


      $        26,418


      $        36,043


      $        (7,162)


      $          7,263

      Adjustments to net income (loss):









      Foreign exchange (gain) loss (1)


      (301)


      4,388


      (476)


      2,544

      Impairment of assets (2)


      1,233


      121


      938


      121

      Share-based compensation (3)


      2,483


      4,526


      610


      1,765

      Other (recoveries) costs (4)


      (22)


      1,516


      —


      744

      Other items included in other expense (5)


      2,560


      10,681


      546


      4,519

      Tax impact of the above items


      (615)


      (2,235)


      (142)


      (894)

      Adjusted net income (loss) (6)


      $        31,756


      $        55,040


      $        (5,686)


      $        16,062










      Attributable to:









      Equity holders of Neo


      $        31,285


      $        54,174


      $        (5,815)


      $        15,534

      Non-controlling interest


      $              471


      $              866


      $              129


      $              528










      Weighted average number of common shares outstanding:

      Basic


      41,992,938


      38,140,110


      45,196,921


      39,332,282

      Diluted


      42,327,548


      38,543,348


      45,196,921


      39,841,690

      Adjusted earnings (loss) per share (6) attributable to equity holders of Neo:





      Basic


      $              0.75


      $              1.42


      $            (0.13)


      $              0.39

      Diluted


      $              0.74


      $              1.41


      $            (0.13)


      $              0.39

      Notes:


      (1)

      Represents unrealized and realized foreign exchange losses (gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.



      (2)

      Represents impairment in property, plant and equipment, long-term asset and prepayment.



      (3)

      Represents share-based compensation expense in respect of the Plan and the LTIP. 



      (4)

      These represent primarily legal, professional advisory fees and other transaction costs incurred with respect to non-operating capital structure related transactions and restructuring costs related to management team changes.  Neo has removed these charges to provide comparability with historic periods.



      (5)

      Represents other expenses resulting from non-operational related activities, including provisions for damages for outstanding legal claims related to historic volumes.  These costs and recoveries are not indicative of Neo's ongoing activities.



      (6)

      Neo reports non-IFRS measures such as "Adjusted Net Income", "Adjusted Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash Flow" and "Free Cash Flow Conversion". 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 www.neomaterials.com and on SEDAR at www.sedar.com.


      About Neo Performance Materials

      Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability.  Neo's advanced industrial materials - magnetic powders and magnets, specialty chemicals, metals, and alloys - are critical to the performance of many everyday products and emerging technologies. Neo's products help to deliver the technologies of tomorrow to consumers today.  The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes 9 manufacturing facilities located in China, the United States, Germany, Canada, Estonia, and Thailand, as well as one dedicated research and development centre in Singapore.  For more information, please visit www.neomaterials.com.

      Cautionary Statements Regarding Forward Looking Statements

      This news release contains "forward-looking information" within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of Neo. All statements in this 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, the following: 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 current and future market trends that may directly or indirectly impact sales and revenue of Neo; 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; risk factors relating to national or international economies (including the impact of COVID-19), geopolitical risk and other risks present in the jurisdictions in which Neo, its customers, its suppliers, and/or its logistics partners operate, 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.

      SOURCE Neo Performance Materials, Inc.

      Ali Mahdavi, SVP, Corporate Development & Capital Markets, (416) 962-3300, Email: a.mahdavi@neomaterials.com; Jim Sims, Director of Corporate Communications, (303) 503-6203, Email: j.sims@neomaterials.com, Website: www.neomaterials.com, Email: info@neomaterials.com

      Modal title

      Organization Profile

      Neo Performance Materials, Inc.

        Also from this source

      • Media Advisory - Neo Performance Materials Inc. Third Quarter 2026 Earnings Release & Conference Call

      • Neo's European Integrated Magnet Project Selected for €126 Million Grant Under EU Innovation Fund

      • Neo's European Separation Facility Named a Strategic Project Under EU Critical Raw Materials Act

      Contact PR Newswire

      • 866-245-2317
        from 7:30 AM - 6:30 PM ET
      • Become a Client
      • Request a Demo
      • Editorial Bureaus
      • Partnerships
      • General Enquiries
      • Media

      Products

      • Explore Our Platform
      • Plan Campaigns
      • Create with AI
      • Distribute Press Releases
      • Report Results
      • Amplify Content
      • Investor Relations

      About

      • About PR Newswire
      • About Cision
      • Careers
      • APAC
      • APAC - Simplified Chinese
      • APAC - Traditional Chinese
      • Brazil
      • Canada
      • Czech
      • Denmark
      • Finland
      • France
      • Germany
      • India
      • Indonesia
      • Israel
      • Japan
      • Korea
      • Mexico
      • Middle East
      • Middle East - Arabic
      • Netherlands
      • Norway
      • Poland
      • Portugal
      • Russia
      • Slovakia
      • Spain
      • Sweden
      • United States
      • Vietnam

      My Services

      • All News Releases
      • Platform Login
      • Privacy Policy

      Do not sell or share my personal information:

      • Submit via Privacy@cision.com 
      • Call Privacy toll-free: 877-297-8921

      Contact Cision

      Products

      About

      My Services
      • All News Releases
      • Platform
      • Next Gen Communications Cloud
      • Cision Communications Cloud
      • my CNW
      877-269-7890
      from 8 AM - 10 PM ET
      • Terms of Use
      • Information Security Policy
      • Site Map
      • Cookie Settings
      • Accessibility Statement
      Copyright © 2026 CNW Group Ltd. All Rights Reserved. A Cision company.