PR Newswire
TORONTO, Nov. 14, 2024 /CNW/ - Neo Performance Materials Inc. ("Neo") (TSX: NEO) released its third quarter 2024 financial results. The financial statements and management's discussion and analysis ("MD&A") of these results can be viewed on Neo's website at www.neomaterials.com/investors/ and on SEDAR+ at www.sedarplus.ca.
Key Takeaways
1.
Increased Adjusted EBITDA(1): Neo reports strong financial results of $19.6 million of Adjusted EBITDA(1) for Q3 2024 and $43.7 million of Adjusted EBITDA(1) for the nine months ended September 30, 2024. Year-over-year Adjusted EBITDA(1) increased for both Magnequench and Rare Metals by 23% and 30%, respectively.
2.
Construction Nearing Completion on European Sintered Magnet Facility: Neo's sintered magnet facility in Europe is on track, with construction completed on the core manufacturing building and all critical equipment ordered. In August 2024, Neo secured a major contract with a European automotive supplier, covering 35% of the plant's peak capacity, with production slated for the second half of 2026.
3.
Credit Facility Secured for Sintered Magnets Facility in Europe: In November 2024, Neo secured a $50 million credit facility from Export Development Canada, with a five-year term to support final construction, equipment purchases and commissioning of the facility.
4.
Business Simplification through Divestment: In line with Neo's strategy to focus on high-margin, downstream business areas, Neo has announced it has entered into agreements to divest three facilities (two of which are in China), which are expected to generate over $30 million in aggregate cash proceeds, and to reduce earnings volatility and inventory.
5.
Grand Opening of Auto Catalyst Plant: In September 2024, Neo celebrated the opening of NAMCO, its new auto catalyst plant in Asia. On-time and on-budget, the facility has requalified the majority of its product portfolio and is on track to finalize the remaining products in the coming months.
6.
Strategic Review Progressing: Neo's financial advisors are advancing the Special Committee-led strategic review process, and Neo continues to take steps to optimize its business, including the divestment of non-core assets and the improvement of operational performance.
7.
Growth Outlook: Neo increased its previous outlook for fiscal 2024, from $45-$50 million of Adjusted EBITDA(1), to $52-$55 million.
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