PR Newswire
TORONTO, Aug. 9, 2024 /CNW/ - Neo Performance Materials Inc. ("Neo") (TSX: NEO) released its second 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) Growth Outlook: Neo reports strong financial results of $24.2 million of Adjusted EBITDA(1) for the six months ended June 30, 2024, despite the further decline in rare earth prices. Neo increased its outlook for fiscal 2024 to $45 million to $50 million of Adjusted EBITDA(1), a 20% to 35% increase over the prior year.
2.
Adjusted EBITDA(1) Margin Expansion: For the six months ended June 30, 2024, Adjusted EBITDA(1) increased to 10.5% from 6.6%, an improvement of 390 basis points from prior year. This shows the strength of the downstream business and reflects the operational improvements that Neo has launched.
3.
New Tier 1 Commercial Award for Sintered Magnet Facility in Europe: At its peak year, the electric vehicle traction motor magnets under this award will be equivalent to 35% of Phase 1 capacity. Facility construction is near completion — remaining on time and on budget.
4.
Simplification of Business Continues: Neo has entered into an agreement to sell its majority ownership interest in the gallium trichloride facility in Quapaw, Oklahoma to its founder at a valuation of 9x trailing twelve month EBITDA.
5.
Strategic Review: Neo's Special Committee announces the appointment of Barclays Capital Inc. and Paradigm Capital Inc. as financial advisors relating to the strategic review process announced in June 2024.
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