ALBEMARLE CORP - FORM 10-K - EX-99.1 - EXHIBIT 99.1 - February 26, 2020

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Exhibit 99.1
FIVE-YEAR SUMMARY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands, Except for Per Share Amounts and Footnote Data)
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
2019(a)
 
2018
 
2017(b)
 
2016(b)(c)
 
2015(b)(c)(d)
Results of Operations
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
3,589,427

 
$
3,374,950

 
$
3,071,976

 
$
2,677,203

 
$
2,826,429

Costs and expenses(e)
 
2,923,304

 
2,463,410

 
2,500,316

 
2,076,223

 
2,516,596

Operating profit
 
666,123

 
911,540

 
571,660

 
600,980

 
309,833

Interest and financing expenses
 
(57,695
)
 
(52,405
)
 
(115,350
)
 
(65,181
)
 
(81,650
)
Other (expenses) income, net
 
(45,478
)
 
(64,434
)
 
(9,512
)
 
(20,535
)
 
82,561

Income from continuing operations before income taxes and equity in net income of unconsolidated investments
 
562,950

 
794,701

 
446,798

 
515,264

 
310,744

Income tax expense
 
88,161

 
144,826

 
431,817

 
96,263

 
11,134

Income from continuing operations before equity in net income of unconsolidated investments
 
474,789

 
649,875

 
14,981

 
419,001

 
299,610

Equity in net income of unconsolidated investments (net of tax)
 
129,568

 
89,264

 
84,487

 
59,637

 
27,978

Net income from continuing operations
 
604,357

 
739,139

 
99,468

 
478,638

 
327,588

Income from discontinued operations (net of tax)(f)
 
—

 
—

 
—

 
202,131

 
32,476

Net income
 
604,357

 
739,139

 
99,468

 
680,769

 
360,064

Net income attributable to noncontrolling interests
 
(71,129
)
 
(45,577
)
 
(44,618
)
 
(37,094
)
 
(25,158
)
Net income attributable to Albemarle Corporation
 
$
533,228

 
$
693,562

 
$
54,850

 
$
643,675

 
$
334,906

Financial Position and Other Data
 
 
 
 
 
 
 
 
 
 
Total assets(g)
 
$
9,860,863

 
$
7,581,674

 
$
7,750,772

 
$
8,161,207

 
$
9,597,954

Operations:
 
 
 
 
 
 
 
 
 
 
Working capital
 
$
816,113

 
$
815,248

 
$
1,276,638

 
$
2,166,515

 
$
214,317

Current ratio
 
1.58

 
1.69

 
2.06

 
2.90

 
1.13

Depreciation and amortization
 
$
213,484

 
$
200,698

 
$
196,928

 
$
226,169

 
$
260,076

Capital expenditures
 
$
851,796

 
$
699,991

 
$
317,703

 
$
196,654

 
$
227,649

Acquisitions, net of cash acquired
 
$
820,000

 
$
11,403

 
$
44,367

 
$
208,734

 
$
2,100,490

Cash proceeds from divestitures, net
 
$
—

 
$
413,569

 
$
6,857

 
$
3,325,571

 
$
8,883

Research and development expenses
 
$
58,287

 
$
70,054

 
$
84,330

 
$
80,475

 
$
89,187

Gross profit as a % of net sales
 
35.0

 
36.1

 
36.0

 
36.2

 
30.4

Total long-term debt(g)
 
$
3,050,257

 
$
1,705,210

 
$
1,837,372

 
$
2,369,262

 
$
3,817,157

Total equity(h)
 
$
4,093,580

 
$
3,759,108

 
$
3,817,696

 
$
3,942,604

 
$
3,401,313

Total long-term debt as a % of total capitalization
 
42.7

 
31.2

 
32.5

 
37.5

 
52.9

Net debt as a % of total capitalization(i)
 
37.3

 
23.4

 
15.5

 
2.5

 
51.4

Common Stock
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
5.03

 
$
6.40

 
$
0.49

 
$
3.93

 
$
2.72

Discontinued operations
 
$
—

 
$
—

 
$
—

 
$
1.80

 
$
0.29





Shares used to compute basic earnings per share
 
105,949

 
108,427

 
110,914

 
112,379

 
111,182

Diluted earnings per share
 
 
 
 
 
 
 
 
 
 
Continuing operations
 
$
5.02

 
$
6.34

 
$
0.49

 
$
3.90

 
$
2.71

Discontinued operations
 
$
—

 
$
—

 
$
—

 
$
1.78

 
$
0.29

Shares used to compute diluted earnings per share
 
106,321

 
109,458

 
112,380

 
113,239

 
111,556

Cash dividends declared per share
 
$
1.47

 
$
1.34

 
$
1.28

 
$
1.22

 
$
1.16

Total equity per share(h)
 
$
38.60

 
$
35.59

 
$
34.53

 
$
35.04

 
$
30.31

Return on average total equity
 
13.6
%
 
18.3
%
 
1.4
%
 
17.5
%
 
13.7
%
Footnotes:
(a)
On October 31, 2019, we completed the acquisition of a 60% interest in Mineral Resources Limited’s Wodgina hard rock lithium mine project (“Wodgina Project”). Results for 2019 include the operations of the Wodgina Project commencing on November 1, 2019.
(b)
As a result of the adoption of new accounting guidance effective January 1, 2018, on a retrospective basis, all components of net benefit cost (credit), other than service cost, are to be shown outside of operations on the consolidated statements of income. We recast these components of net benefit cost (credit), which resulted in an increase (reduction) of $3.7 million, $0.3 million and $3.7 million in Cost of goods sold, respectively, and $12.4 million, ($26.7) million and $31.6 million million in Selling, general and administrative expenses, respectively, with an offsetting impact of $16.1 million, ($26.4) million and $35.3 million in Other (expenses) income, net, respectively, for the years ended December 31, 2017, 2016 and 2015. There was no impact to Net income attributable to Albemarle Corporation.
(c)
On December 14, 2016 the Company sold the Chemetall Surface Treatment business, which qualifies for discontinued operations treatment because it represents a strategic shift that will have a major effect on the Company’s operations and financial results. As a result, in the second quarter of 2016, the Company began accounting for this business as discontinued operations in the consolidated statements of income and excluded the business from segment results for the years ended December 31, 2016 and 2015, the periods this business was owned by Albemarle. Related assets and liabilities are classified as held for sale for 2015.
(d)
On January 12, 2015, we completed the acquisition of Rockwood Holdings, Inc. Results for 2015 include the operations of Rockwood commencing on January 13, 2015.
(e)
The year ended December 31, 2018 included a gain before income taxes of $210.4 million related to the sale of the polyolefin catalysts and components portion of the Performance Catalysts Solutions business. The year ended December 31, 2016 included gains before income taxes of $11.5 million and $112.3 million related to the sales of the metal sulfides business and the minerals-based flame retardants and specialty chemicals business, respectively.
(f)
Included in Income from discontinued operations (net of tax) for the year ended December 31, 2016 is a pre-tax gain of $388.0 million ($135.0 million after income taxes) related to the sale of the Chemetall Surface Treatment business.
(g)
As a result of the adoption of new accounting guidance effective January 1, 2016 on a retrospective basis, unamortized debt issuance costs are now deducted from the carrying amount of the associated debt liability on the balance sheet. The reclassification of these unamortized debt issuance costs resulted in reductions of Long-term debt and Other assets on the consolidated balance sheets of $17.1 million in 2015.
(h)
Equity reflects the repurchase of common shares amounting to: 2019—0; 2018—5,262,654; 2017—2,341,083; 2016—0; and 2015—0. 2015 also includes the impact of 34,113,064 shares of common stock issued in connection with the acquisition of Rockwood.
(i)
We define net debt as total debt plus the portion of outstanding joint venture indebtedness guaranteed by us (or less the portion of outstanding joint venture indebtedness consolidated but not guaranteed by us), less cash and cash equivalents.



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