{"id":1456,"date":"2018-05-14T07:00:13","date_gmt":"2018-05-14T11:00:13","guid":{"rendered":"http:\/\/neomaterials.com\/?p=1456"},"modified":"2020-06-30T17:07:42","modified_gmt":"2020-06-30T21:07:42","slug":"neo-performance-materials-reports-strong-first-quarter-2018-results","status":"publish","type":"post","link":"https:\/\/www.neomaterials.com\/neo-performance-materials-reports-strong-first-quarter-2018-results\/","title":{"rendered":"Neo Performance Materials Reports Strong First Quarter 2018 Results"},"content":{"rendered":"<h4 style=\"text-align: center;\"><strong>Q1 2018 Highlights<\/strong><\/h4>\n<p style=\"text-align: center;\"><em>(unless other noted, all financial amounts in this news release are expressed in U.S. dollars)<\/em><\/p>\n<ul>\n<li>$120.2 million in revenue<\/li>\n<li>Net income of $8.9 million, or $0.22 per share<\/li>\n<li>Adjusted Net Income<sup>(1)<\/sup> of $10.3 million, or $0.25 per share<\/li>\n<li>Adjusted EBITDA<sup>(1)<\/sup> of $19.3 million<\/li>\n<li>Quarter-end closes with $94.5 million cash on hand after paying a $3.0 million dividend<\/li>\n<li>A quarterly dividend of Cdn$0.095 per common share was declared on May 9, 2018 for shareholders of record at June 22, 2018.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>TORONTO, Canada<\/strong>, May 14, 2018 \u2013 Neo Performance Materials Inc. (\u201c<strong>Neo<\/strong>\u201d, the \u201c<strong>Company<\/strong>\u201d) (<strong>TSX:NEO<\/strong>), a global leader in the innovation and manufacturing of rare earth and rare metal-based functional materials, today released first quarter 2018 financial results. The financial statements and the management\u2019s discussion and analysis (\u201c<strong>MD&amp;A<\/strong>\u201d) of these results can be viewed on the Company\u2019s web site at <a href=\"https:\/\/www.neomaterials.com\">www.neomaterials.com<\/a> and on SEDAR at <a href=\"https:\/\/www.sedar.com\">www.sedar.com<\/a>.<\/p>\n<h4><\/h4>\n<h4><strong>HIGHLIGHTS OF Q1 2018 CONSOLIDATED PERFORMANCE<\/strong><\/h4>\n<p>In the first quarter of 2018, Neo generated $120.2 million in revenue, a 12.7% increase over Q1 2017. Net income totaled $8.9 million, or $0.22 per share. Adjusted Net Income<sup>(1)<\/sup> totaled $10.3 million, or $0.25 per share. Adjusted EBITDA<sup>(1)<\/sup> decreased 6.6% to $19.3 million, from $20.6 million in Q1 2017. Revenues and Adjusted EBITDA were $434.2 million and $67.9 million, respectively for the full year ended December 31, 2017.<\/p>\n<p>As of March 31, 2018, the Company reported cash and cash equivalents of $94.5 million, compared to $96.8 million as at December 31, 2017. Neo has approximately $29.3 million available under its credit facilities with nominal amounts drawn. In addition, paid a $3.0 million dividend to its shareholders on March 29, 2018.<\/p>\n<p>&#8220;We had a very good first quarter of 2018, supported by many of the global macro growth trends such as electrification of vehicles and more stringent air emission standards that we expect will continue to drive demand for our products,\u201d said Geoff Bedford, Neo\u2019s President and CEO.\u00a0 \u201cAs we look ahead, our company is well positioned in the markets we serve with a strong balance sheet and robust free cash flow.\u201d<strong><br \/>\n<\/strong><\/p>\n<h4><\/h4>\n<h4><strong>SELECTED FINANCIAL RESULTS<\/strong><\/h4>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td style=\"background-color: #0085ca; width: 624px;\" colspan=\"3\" width=\"624\"><span style=\"color: #ffffff; font-size: 12pt;\"><strong>TABLE 1: Selected Consolidated Results<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"2\" width=\"226\">\n<p style=\"text-align: center;\"><strong><em>Q-over-Q Comparison<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td style=\"text-align: right;\" width=\"112\"><strong>Q1 2018<\/strong><\/td>\n<td style=\"text-align: right;\" width=\"114\"><strong>Q1 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Volume (tonnes)<\/td>\n<td style=\"text-align: right;\" width=\"112\">3,599<\/td>\n<td style=\"text-align: right;\" width=\"114\">3,982<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">($000s)<\/td>\n<td style=\"text-align: right;\" width=\"112\"><\/td>\n<td style=\"text-align: right;\" width=\"114\"><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Revenue<\/td>\n<td style=\"text-align: right;\" width=\"112\">$120,185<\/td>\n<td style=\"text-align: right;\" width=\"114\">$106,662<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Operating income<sup>(1)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"112\">$13,505<\/td>\n<td style=\"text-align: right;\" width=\"114\">$10,880<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">EBITDA<sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"112\">$17,897<\/td>\n<td style=\"text-align: right;\" width=\"114\">$14,347<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Adjusted EBITDA<sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"112\">$19,288<\/td>\n<td style=\"text-align: right;\" width=\"114\">$20,640<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Adjusted EBITDA %<sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" width=\"112\">16.0%<\/td>\n<td style=\"text-align: right;\" width=\"114\">19.4%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>_________________________<\/strong><\/p>\n<p><em><sup>(1)<\/sup><\/em><em>In accordance with IFRS 3 &#8211; Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><em><sup>(2)<\/sup><\/em><em>Neo reports non-IFRS measures such as \u201cAdjusted Net Income\u201d, &#8220;Adjusted Earnings per Share&#8221;, \u201cAdjusted EBITDA\u201d, \u201dAdjusted EBITDA Margin\u201d and \u201cEBITDA\u201d. Please see information on this and other non-IFRS measures in the \u201cNon-IFRS Measures\u201d section of this news release and in the MD&amp;A.<\/em><\/p>\n<p>&nbsp;<\/p>\n<h4><strong>MAGNEQUENCH SEGMENT RESULTS<\/strong><strong>\u00a0<\/strong><\/h4>\n<p>Magnequench continued to see growth in many of its end market applications, including micro-motors for vehicles and traction motors, and revenues were up by 17% in the quarter from the prior year largely due to the increased selling prices from higher rare earth input costs, which are subject to pass-through mechanics.\u00a0 Volume declined 8% compared to the prior year period, largely driven by customers making adjustments to their quarterly purchasing patterns and inventory levels, which positively impacted the first quarter of 2017.\u00a0 Sales into the automotive sector continued to be strong, driven by the increased use by manufacturers of permanent magnet motors across most vehicle lines to reduce vehicle weight and, increase fuel economy.\u00a0 In particular, sales of Magnequench\u2019s\u00a0 zero-heavy-rare-earth MQU magnetic powders for use in vehicle drive train motors is expected to see robust growth.\u00a0 Adjusted EBITDA of $15.5 million, a 15% improvement from the prior year, was driven by continued strong operating performance, strategic purchases of other non-rare earth raw materials, and the impact of selling prices being adjusted on a lagged basis.<\/p>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td style=\"background-color: #7375bc; width: 624px;\" colspan=\"5\" width=\"624\"><span style=\"font-size: 12pt; color: #ffffff;\"><strong>TABLE 2: Selected Magnequench Results<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"4\" width=\"239\">\n<p style=\"text-align: center;\"><strong><em>Q-over-Q Comparison<\/em><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\"><strong>Q1 2018<\/strong><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\"><strong>Q1 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Volume (tonnes)<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\">1,527<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\">1,659<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">($000s)<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\"><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\"><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Revenue<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\">$55,734<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\">$47,444<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Operating income<sup>(1)<\/sup><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\">$13,341<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\">$11,272<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">EBITDA<sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\">$15,328<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\">$12,402<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Adjusted EBITDA<sup>(2)<\/sup><\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"119\">$15,475<\/td>\n<td style=\"text-align: right;\" colspan=\"2\" width=\"120\">$13,445<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>_________________________<\/strong><\/p>\n<p><em><sup>(1)<\/sup><\/em><em>In accordance with IFRS 3 &#8211; Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><em><sup>(2)<\/sup><\/em><em>Neo reports non-IFRS measures such as \u201cAdjusted Net Income\u201d, &#8220;Adjusted Earnings per Share&#8221;, \u201cAdjusted EBITDA\u201d, \u201dAdjusted EBITDA Margin\u201d and \u201cEBITDA\u201d. Please see information on this and other non-IFRS measures in the \u201cNon-IFRS Measures\u201d section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>CHEMICALS AND OXIDES (&#8220;C&amp;O&#8221;) SEGMENT RESULTS<\/strong><strong>\u00a0<\/strong><\/h4>\n<p>Neo\u2019s C&amp;O segment reported a 5% increase in revenue in the quarter over the prior year, primarily driven by higher rare earth pricing.\u00a0 Volume declined 12%, primarily attributable to quarterly variations in customer purchasing patterns and adjustment to inventory levels. Neo continues to incur additional premium freight costs in the first quarter of 2018 as the supply chain continues to be refilled following the implementation of the new wastewater treatment system at the Company&#8217;s Zibo, China facility. These premium freight costs are expected to continue, at a steadily reducing rate, into the second quarter of 2018.\u00a0 The impact of the additional premium freight costs plus potentially lost sales is estimated to be between $3 million to $4 million in the three month period ended March 31, 2018.\u00a0 Strong demand continues to be seen for Neo\u2019s more highly engineered rare earth-based products, such as automotive emissions control catalyst materials.<\/p>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td style=\"width: 95%; background-color: #ff8f1c;\" colspan=\"5\" width=\"624\"><span style=\"font-size: 12pt; color: #ffffff;\"><strong>TABLE 3: Selected C&amp;O Results<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"4\" width=\"239\"><strong><em>Q-over-Q Comparison<\/em><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"2\" width=\"119\"><strong>Q1 2018<\/strong><\/td>\n<td colspan=\"2\" width=\"120\"><strong>Q1 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Volume (tonnes)<\/td>\n<td colspan=\"2\" width=\"119\">2,007<\/td>\n<td colspan=\"2\" width=\"120\">2,290<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">($000s)<\/td>\n<td colspan=\"2\" width=\"119\"><\/td>\n<td colspan=\"2\" width=\"120\"><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Revenue<\/td>\n<td colspan=\"2\" width=\"119\">$45,156<\/td>\n<td colspan=\"2\" width=\"120\">$43,066<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Operating income<sup>(1)<\/sup><\/td>\n<td colspan=\"2\" width=\"119\">$2,117<\/td>\n<td colspan=\"2\" width=\"120\">$4,660<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">EBITDA<sup>(2)<\/sup><\/td>\n<td colspan=\"2\" width=\"119\">$3,277<\/td>\n<td colspan=\"2\" width=\"120\">$5,694<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Adjusted EBITDA<sup>(2)<\/sup><\/td>\n<td colspan=\"2\" width=\"119\">$3,520<\/td>\n<td colspan=\"2\" width=\"120\">$8,266<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>_________________________<\/strong><\/p>\n<p><em><sup>(1)<\/sup><\/em><em>In accordance with IFRS 3 &#8211; Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><em><sup>(2)<\/sup><\/em><em>Neo reports non-IFRS measures such as \u201cAdjusted Net Income\u201d, &#8220;Adjusted Earnings per Share&#8221;, \u201cAdjusted EBITDA\u201d, \u201dAdjusted EBITDA Margin\u201d and \u201cEBITDA\u201d. Please see information on this and other non-IFRS measures in the \u201cNon-IFRS Measures\u201d section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>RARE METALS SEGMENT RESULTS<\/strong><\/h4>\n<p>The Rare Metals segment booked a strong quarter versus the prior year, with volume expanding 45%, revenue higher by 24%, operating income up 106%, and EBITDA and Adjusted EBITDA higher by 51% and 45% respectively.\u00a0 Stronger results were largely driven by continued improvements realized at the Silmet facility, with increased volumes, higher flow-through margins, continued focus on higher margin programs and continued operational improvements. \u00a0The division\u2019s gallium trichloride business also saw sales sharply higher in the quarter as a key customer recovered from a 2017 fire.<\/p>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td style=\"background-color: #beb73b; width: 95%;\" colspan=\"5\" width=\"624\"><span style=\"font-size: 12pt; color: #ffffff;\"><strong>TABLE 4: Selected Rare Metals Results<\/strong><\/span><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"4\" width=\"249\"><strong><em>Q-over-Q Comparison<\/em><\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\"><\/td>\n<td colspan=\"2\" width=\"124\"><strong>Q1 2018<\/strong><\/td>\n<td colspan=\"2\" width=\"125\"><strong>Q1 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Volume (tonnes)<\/td>\n<td colspan=\"2\" width=\"119\">135<\/td>\n<td colspan=\"2\" width=\"120\">93<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">($000s)<\/td>\n<td colspan=\"2\" width=\"124\"><\/td>\n<td colspan=\"2\" width=\"125\"><\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Revenue<\/td>\n<td colspan=\"2\" width=\"124\">$22,771<\/td>\n<td colspan=\"2\" width=\"125\">$18,421<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Operating income<sup>(1)<\/sup><\/td>\n<td colspan=\"2\" width=\"124\">$2,479<\/td>\n<td colspan=\"2\" width=\"125\">$1,203<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">EBITDA<sup>(2)<\/sup><\/td>\n<td colspan=\"2\" width=\"124\">$3,709<\/td>\n<td colspan=\"2\" width=\"125\">$2,450<\/td>\n<\/tr>\n<tr>\n<td width=\"375\">Adjusted EBITDA<sup>(2)<\/sup><\/td>\n<td colspan=\"2\" width=\"124\">$3,796<\/td>\n<td colspan=\"2\" width=\"125\">$2,621<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>_________________________<\/strong><\/p>\n<p><em><sup>(1)<\/sup><\/em><em>In accordance with IFRS 3 &#8211; Business Combinations and on completion of the reorganization in September 2016, Neo recorded the acquisition of its inventory at fair value. See details in Acquisition of Inventory at Fair Value section of this news release and in the MD&amp;A.<\/em><\/p>\n<p><em><sup>(2)<\/sup><\/em><em>Neo reports non-IFRS measures such as \u201cAdjusted Net Income\u201d, &#8220;Adjusted Earnings per Share&#8221;, \u201cAdjusted EBITDA\u201d, \u201dAdjusted EBITDA Margin\u201d and \u201cEBITDA\u201d. Please see information on this and other non-IFRS measures in the \u201cNon-IFRS Measures\u201d section of this news release and in the MD&amp;A.<\/em><strong>\u00a0<\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>CONFERENCE CALL ON MONDAY, MAY 14, 2018 AT 10 AM EASTERN<\/strong><\/h4>\n<p>Management will host a teleconference call on Monday, May 14, 2018 at 10:00 a.m. (Eastern Time) to discuss the first quarter 2018 results.\u00a0 Interested parties may access the teleconference by calling (647) 427-7450 (local) or\u00a0 (888) 231-8191 (toll free long distance) or by visiting <a href=\"https:\/\/cnw.en.mediaroom.com\/events\">https:\/\/cnw.en.mediaroom.com\/events<\/a>.\u00a0 A recording of the teleconference may be accessed by calling (416) 849-0833 (local) or (855) 859-2056 (toll free long distance), and entering pass code 7687658# until June 11, 2018 or by visiting <a href=\"https:\/\/cnw.en.mediaroom.com\/events\">https:\/\/cnw.en.mediaroom.com\/events<\/a>.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>NON-IFRS MEASURES<\/strong><\/h4>\n<p>This news release refers to certain non-IFRS financial measures such as \u201cOperating Income\u201d, \u201cAdjusted Net Income\u201d,\u201cEBITDA\u201d, \u201cAdjusted EBITDA\u201d, and \u201cAdjusted EBITDA Margin\u201d. These measures 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 are provided as additional information to complement IFRS financial measures by providing further understanding of Neo&#8217;s results of operations from management&#8217;s perspective. Neo&#8217;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 have limitations as analytical tools and should not be considered in isolation nor as a substitute for analysis of Neo&#8217;s financial information reported under IFRS. Neo uses non-IFRS financial measures 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 in the evaluation of issuers. Neo&#8217;s management also uses non-IFRS financial measures in order to facilitate operating performance comparisons from period to period. For the operating segments, Neo also uses \u201cOIBDA\u201d and \u201cAdjusted OIBDA\u201d, which reconciles to operating income. Neo uses OIBDA and EBITDA interchangeably as the use of adjustments in each measure provides the same calculated outcome of operating performance. For definitions of how Neo defines such financial measures, please see the &#8220;Non-IFRS Financial Measures\u201d section of Neo\u2019s management\u2019s<\/p>\n<p>discussion and analysis filing for the quarter ended on March 31, 2018, available on the Company\u2019s web site at <a href=\"https:\/\/www.neomaterials.com\">www.neomaterials.com<\/a> and on SEDAR at <a href=\"https:\/\/www.sedar.com\">www.sedar.com<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>ACQUISITION OF INVENTORY AT FAIR VALUE<\/strong><\/h4>\n<p>In accordance with IFRS 3 &#8211; Business Combinations, and on completion of the Reorganization, the Company recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the three months ended March 31, 2017 and had $2,935 impact on operating on costs of sales. The $2,935 mark-up (consisting of Magnequench $836, C&amp;O $2,158 and Rare Metals $(59)) has not been added back to operating income in the calculation of operating income. There is no impact to operating income in 2018. For a full description, please refer to Neo&#8217;s MD&amp;A for the quarter ended March 31, 2018, available on the Company&#8217;s website <a href=\"https:\/\/www.neomaterials.com\">www.neomaterials.com<\/a> and on SEDAR at <a href=\"https:\/\/www.sedar.com\">www.sedar.com<\/a><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>TABLE 5: CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION<\/strong><strong>\u00a0<\/strong><\/h4>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td width=\"411\"><em>($000s)<\/em><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>March 31, 2018<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>December 31, 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>ASSETS<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Current<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Cash and cash equivalents<\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">94,544<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">96,805<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Restricted cash<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,507<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,529<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Accounts receivable<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">49,681<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">46,766<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Inventories<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">111,164<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">104,534<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Income taxes receivable<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">844<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">661<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Other current assets<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">21,392<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">13,955<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total current assets<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>279,132<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>264,250<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Property, plant and equipment<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">88,165<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">88,392<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Intangible assets<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">73,134<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">72,769<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Goodwill<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">103,551<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">101,893<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Investments<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">7,613<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">8,633<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Deferred tax assets<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,173<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,406<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Other non-current assets<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">730<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,150<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total non-current assets<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>274,366<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>274,243<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total assets<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>553,498<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>538,493<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>LIABILITIES AND EQUITY<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Current<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Bank advances and other short-term debt<\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">546<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">181<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Accounts payable and other accrued charges<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">76,034<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">73,177<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Income taxes payable<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">6,204<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">6,319<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Other current liabilities<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">\u2014<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,777<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total current liabilities<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>82,784<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>81,454<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Employee benefits<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">2,308<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">2,437<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Derivative liability<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">10,186<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">9,842<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Provisions<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">4,665<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">4,665<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Deferred tax liabilities<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">21,290<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">20,206<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Other non-current liabilities<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">689<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">642<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total non-current liabilities<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>39,138<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>37,792<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total liabilities<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>121,922<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>119,246<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Non-controlling interest<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">6,027<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">5,831<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Equity attributable to equity holders of Neo Performance Materials Inc<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">425,549<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">413,416<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total equity<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>431,576<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>419,247<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Total liabilities and equity<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>553,498<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>538,493<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>____________________________<\/p>\n<p><em>See accompanying notes to this table in Neo&#8217;s Interim Condensed Consolidated Financial Statements for the Three Months Ended March 31, 2018, available on the Company&#8217;s website at <\/em><a href=\"https:\/\/www.neomaterials.com\"><em>www.neomaterials.com<\/em><\/a><em> and on SEDAR at <\/em><a href=\"https:\/\/www.sedar.com\"><em>www.sedar.com<\/em><\/a><em>.<\/em><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>TABLE 6: CONDENSED CONSOLIDATED RESULTS OF OPERATIONS<\/strong><\/h4>\n<p><em>Comparison of the three month period ended March 31, 2018 to the three month period ended March 31, 2017<\/em><\/p>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td width=\"411\"><em>($000s)<\/em><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2018<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Revenue<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">120,185<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">106,662<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Costs of sales<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Costs excluding depreciation and amortization<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">83,686<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">74,756<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Depreciation and amortization<\/td>\n<td colspan=\"2\" width=\"82\">2,510<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,782<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Gross profit<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">33,989<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">30,124<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Expenses<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Selling, general and administrative<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">13,146<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">10,889<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Stock-based compensation<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,090<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">3,358<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Depreciation and amortization<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,882<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,685<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Research and development<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">4,366<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">3,312<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">20,484<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">19,244<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Operating income<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>13,505<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\"><strong>10,880<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Other (expense) income<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(34<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,773<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Finance costs, net<\/td>\n<td colspan=\"2\" width=\"82\">(237<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(65<\/td>\n<td width=\"5\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Foreign exchange (loss) gain<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(171<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">14<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Income from operations before income taxes and equity income (loss) of associates<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">13,063<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">12,602<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Income tax expense<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(3,191<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(4,707<\/td>\n<td width=\"5\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Income from operations before equity income (loss) of associates<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">9,872<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">7,895<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Equity (loss) income of associates (net of income tax)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(1,020<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">330<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Net income<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,852<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,225<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Attributable to:<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Equity holders of Neo Performance Materials Inc<\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">8,667<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">8,178<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Non-controlling interest<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">185<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">47<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,852<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,225<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Earnings per share attributable to equity holders of Neo Performance Materials Inc.:<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Basic<\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">0.22<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">0.21<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Diluted<\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">0.21<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\">$<\/td>\n<td width=\"74\">0.20<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>___________________________<\/p>\n<p><em>See Management&#8217;s Discussion and Analysis for the Three Months Ended March 31, 2018, available on the Company&#8217;s website at <\/em><a href=\"https:\/\/www.neomaterials.com\"><em>www.neomaterials.com<\/em><\/a><em> and on SEDAR at <\/em><a href=\"https:\/\/www.sedar.com\"><em>www.sedar.com<\/em><\/a><em>.<\/em><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>TABLE 7: RECONCILIATION OF NET INCOME TO EBITDA, ADJUSTED EBITDA AND FREE CASH FLOW<\/strong><\/h4>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td width=\"413\"><em>($000s)<\/em><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2018<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><strong>Net income<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"68\"><strong>8,852<\/strong><\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"68\"><strong>8,225<\/strong><\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Add back:<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Finance costs, net<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">237<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">65<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Income tax expense<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">3,191<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">4,707<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Depreciation and amortization included in Costs of Sales<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">2,510<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,782<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Depreciation and amortization<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,882<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,685<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><strong>EBITDA<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><strong>16,672<\/strong><\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><strong>16,464<\/strong><\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><strong>Adjustments to EBITDA:<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Equity loss (income) in associates<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,020<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">(330<\/td>\n<td width=\"12\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Other expense (income)<sup> (1)<\/sup>&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">34<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">(1,773<\/td>\n<td width=\"12\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Foreign exchange loss (gain) <sup>(2)<\/sup><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">171<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">(14<\/td>\n<td width=\"12\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Stock and value-based compensation expense<sup> (3<\/sup><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,391<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">3,358<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Acquired inventory fair value release <sup>(4)<\/sup><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">\u2014<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">2,935<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><strong>Adjusted EBITDA<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"68\"><strong>19,288<\/strong><\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"68\"><strong>20,640<\/strong><\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><em>Adjusted EBITDA Margins<\/em><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><em>16.0<\/em><\/td>\n<td width=\"12\"><em>%<\/em><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><em>19.4<\/em><\/td>\n<td width=\"12\"><em>%<\/em><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Less:<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\">Capital expenditures<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">2,305<\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">1,364<\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><strong>Free Cash Flow<\/strong><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><strong>16,983<\/strong><\/td>\n<td width=\"12\"><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\"><strong>19,276<\/strong><\/td>\n<td width=\"12\"><\/td>\n<\/tr>\n<tr>\n<td width=\"413\"><em>Free Cash Flow Conversion<sup> (5)<\/sup><\/em><\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">88.0<\/td>\n<td width=\"12\">%<\/td>\n<td width=\"19\"><\/td>\n<td colspan=\"2\" width=\"75\">93.4<\/td>\n<td width=\"12\">%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong><u>Notes:<\/u><\/strong><\/p>\n<ul>\n<li>Represents other income (expenses) resulting from non-operational related activities. Other income in 2017 primarily relating to costs and insurance recoveries as a result of the fire at the Silmet facility.\u00a0 These costs and recoveries are not indicative of Neo&#8217;s ongoing activities.<\/li>\n<li>Represents unrealized and realized foreign exchange losses\/(gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.<\/li>\n<li>Represents stock and value based compensation expense in respect of the Legacy Plan adopted upon the completion of the reorganization (please refer to the MD&amp;A dated March 9, 2018 in Neo&#8217;s 2017 Annual Report) and the long-term value bonus plan, which has similar vesting criteria to the stock based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance. The value based compensation expense of $301 and $nil are included in selling, general, and administration expenses for the three month periods ended March 31, 2018 and March 31, 2017, respectively.\u00a0 Neo has removed both the stock and value based compensation expense from EBITDA to provide comparability with historic periods and to treat it consistently with the Share-based plan awards that they are intended to replace.<\/li>\n<li>In accordance with IFRS 3 Business Combinations and on completion of the reorganization, Neo recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the three month period ended March 31, 2017 and had a $2,935 impact on net income. Neo has removed this from net income to provide a measure of operating performance without the non-cash, non-operational accounting change to the inventory and to provide comparability with historic periods.<\/li>\n<li>Calculated as Free Cash Flow divided by Adjusted EBITDA.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>TABLE 8: RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME<\/strong><\/h4>\n<table width=\"95%\">\n<tbody>\n<tr>\n<td width=\"411\"><em>($000s)<\/em><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2018<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><strong>Three Months Ended March 31, 2017<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Net income<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,852<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>8,225<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Adjustments to net income:<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Foreign exchange loss (gain) <sup>(1)<\/sup><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">171<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(14<\/td>\n<td width=\"5\">)<\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Stock and value-based compensation expense <sup>(2)<\/sup><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">1,391<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">\u2014<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Acquired inventory fair value release <sup>(3)<\/sup><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">\u2014<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">2,935<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Tax impact of the above items<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">(146<\/td>\n<td width=\"5\">)<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">24<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Adjusted net income<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>10,268<\/strong><\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td width=\"7\"><strong>$<\/strong><\/td>\n<td width=\"74\"><strong>11,170<\/strong><\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><strong>Attributable to:<\/strong><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Equity holders of Neo Performance Materials Inc.<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">10,083<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">11,123<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Non-controlling interest<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">185<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">47<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"5\" width=\"517\">Weighted average number of common shares outstanding:<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"3\" width=\"0\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Basic<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">39,920,140<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">39,664,526<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Diluted<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">40,402,139<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">39,997,259<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"9\" width=\"624\">Adjusted earnings per share<sup>(4)<\/sup> attributable to equity shareholders of Neo Performance Materials Inc.:<\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Basic<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">0.25<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">0.28<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<tr>\n<td width=\"411\">Diluted<\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">0.25<\/td>\n<td width=\"5\"><\/td>\n<td width=\"20\"><\/td>\n<td colspan=\"2\" width=\"82\">0.28<\/td>\n<td width=\"5\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong><strong><u>Notes:<\/u><\/strong><\/p>\n<ul>\n<li>Represents unrealized and realized foreign exchange losses\/(gains) that include non-cash adjustments in translating foreign denominated monetary assets and liabilities.<\/li>\n<li>Represents stock and value based compensation expense in respect of the Legacy Plan adopted upon the completion of the reorganization (please refer to the MD&amp;A dated March 9, 2018 in Neo&#8217;s 2017 Annual Report) and the long-term value bonus plan, which has similar vesting criteria to the stock based plan and is settled in cash for non-executives and non-North Americans where implementation of a share settlement plan would have been prohibitively expensive in terms of administration and compliance. The value based compensation expense of $301 and $nil are included in selling, general, and administration expenses for the three month periods ended March 31, 2018 and March 31, 2017, respectively.\u00a0 Neo has removed both the stock and value based compensation expense from net income to provide comparability with historic periods and to treat it consistently with the Share-based plan awards that they are intended to replace.<\/li>\n<li>In accordance with IFRS 3 Business Combinations and on completion of the reorganization, Neo recorded the acquisition of its inventory at fair value, which included a mark-up for profit of $27,062. A portion of this inventory was sold in the three month period ended March 31, 2017 and had a $2,935 impact on net income.\u00a0 Neo has removed this from net income to provide a measure of operating performance without the non-cash, non-operational accounting change to the inventory and to provide comparability with historic periods.<\/li>\n<li>Neo reports non-IFRS measures such as \u201cAdjusted Net Income\u201d, &#8220;Adjusted Earnings per Share&#8221;, \u201cAdjusted EBITDA\u201d, \u201dAdjusted EBITDA Margin\u201d and \u201cEBITDA\u201d. Please see information on this and other non-IFRS measures in the \u201cNon-IFRS Measures\u201d section of this new release and in the MD&amp;A, available on the Company&#8217;s website <a href=\"https:\/\/www.neomaterials.com\">neomaterials.com<\/a> and on SEDAR at <a href=\"https:\/\/www.sedar.com\">www.sedar.com<\/a>.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>Notice of Shareholder Meeting<\/strong><\/h4>\n<p>The Company will hold its Annual General Meeting of Shareholders on Monday, June 25, 2018 at 4:00 pm (Toronto time) at The Gallery, TMX Broadcast Centre, The Exchange Tower, 130 King Street West, Toronto, Ontario.<\/p>\n<p>&nbsp;<\/p>\n<h4><strong>About Neo Performance Materials<\/strong><\/h4>\n<p>Neo Performance Materials is a global leader in the innovation and manufacturing of rare earth and rare metal-based functional materials, which are essential inputs to high technology, high growth, future-facing industries. The business of the Company is organized along three segments: Magnequench, Chemicals &amp; Oxides and Rare Metals. The Company is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, US; and Beijing, China. The Company operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea. For more information, please visit <a href=\"https:\/\/www.neomaterials.com\">www.neomaterials.com<\/a>.<\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>Information Contacts<\/strong><\/h4>\n<table width=\"624\">\n<tbody>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\">Ali Mahdavi<\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\">Jim Sims<\/td>\n<\/tr>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\">Capital Markets and IR<\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\">Media Relations<\/td>\n<\/tr>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\">(416) 962-3300<\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\">(303) 503-6203<\/td>\n<\/tr>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\">Email: a.mahdavi@neomaterials.com<\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\">Email: j.sims@neomaterials.com<\/td>\n<\/tr>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\"><\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\"><\/td>\n<\/tr>\n<tr>\n<td width=\"45\"><\/td>\n<td width=\"267\">Website: <a href=\"https:\/\/www.neomaterials.com\">www.neomaterials.com<\/a><\/td>\n<td width=\"33\"><\/td>\n<td width=\"279\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>\u00a0<\/strong><\/p>\n<h4><strong>Cautionary Statements Regarding Forward Looking Statements<\/strong><\/h4>\n<p>This news release contains \u201cforward-looking information\u201d within the meaning of applicable securities laws in Canada. Forward-looking information may relate to future events or future performance of the Company. All statements in this release, other than statements of historical facts, with respect to the Company&#8217;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: expectations regarding certain of the Company&#8217;s future results and information, including, among other things, revenue, expenses, sales growth, capital expenditures, and operations; statements with respect to 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; and, expectations concerning any remediation efforts to the Company&#8217;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 \u201cplans\u201d, \u201cexpects\u201d, \u201cis expected\u201d, \u201cbudget\u201d, \u201cscheduled\u201d, \u201cestimates\u201d, \u201ccontinues\u201d, \u201cforecasts\u201d, \u201cprojects\u201d, \u201cpredicts\u201d, \u201cintends\u201d, \u201canticipates\u201d or \u201cbelieves\u201d, or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results \u201cmay\u201d, \u201ccould\u201d, \u201cwould\u201d, \u201cshould\u201d, \u201cmight\u201d or \u201cwill\u201d 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. The Company 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 the Company, investors should review the Company&#8217;s continuous disclosure filings that are available under the Company&#8217;s profile at <a href=\"https:\/\/www.sedar.com\">www.sedar.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q1 2018 Highlights (unless other noted, all financial amounts in this news release are expressed in U.S. dollars) $120.2 million in revenue Net income of $8.9 million, or $0.22 per share Adjusted Net Income(1) of $10.3 million, or $0.25 per share Adjusted EBITDA(1) of $19.3 million Quarter-end closes with $94.5 million cash on hand after [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-1456","post","type-post","status-publish","format-standard","hentry","category-news-releases"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.7 - 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