{"id":19206,"date":"2024-08-09T07:00:06","date_gmt":"2024-08-09T11:00:06","guid":{"rendered":"http:\/\/www.neomaterials.com\/?p=19206"},"modified":"2024-08-09T07:00:06","modified_gmt":"2024-08-09T11:00:06","slug":"neo-performance-materials-reports-second-quarter-2024-results","status":"publish","type":"post","link":"https:\/\/www.neomaterials.com\/neo-performance-materials-reports-second-quarter-2024-results\/","title":{"rendered":"Neo Performance Materials Reports Second Quarter 2024 Results"},"content":{"rendered":"\t\t
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TORONTO<\/span>, Canada\u00a0–\u00a0Neo Performance Materials Inc. (“Neo<\/b>“) (TSX: NEO) released its second quarter 2024 financial results. The financial statements and management’s discussion and analysis (“MD&A<\/b>“) of these results can be viewed on Neo’s website at www.neomaterials.com\/investors\/<\/a>\u00a0and on SEDAR+ at\u00a0www.sedarplus.ca<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Key Takeaways\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1.<\/span><\/p><\/td>

Increased Adjusted EBITDA(1)\u00a0<\/sup>Growth Outlook:<\/b>\u00a0Neo reports strong financial results of $24.2\u00a0million of Adjusted EBITDA(1)\u00a0<\/sup>for the six months ended June 30, 2024, despite the further decline in rare earth prices.\u00a0 Neo increased its outlook for fiscal 2024 to $45 million to $50 million of Adjusted EBITDA(1)<\/sup>, a 20% to 35% increase over the prior year.\u00a0\u00a0<\/span><\/p><\/td><\/tr>

2.<\/span><\/p><\/td>

Adjusted EBITDA(1)<\/sup>\u00a0Margin Expansion:<\/b>\u00a0For the six months ended June 30, 2024, Adjusted EBITDA(1)\u00a0<\/sup>increased to 10.5% from 6.6%, an improvement of 390 basis points from prior year.\u00a0 This shows the strength of the downstream business and reflects the operational improvements that Neo has launched.<\/span><\/p><\/td><\/tr>

3.<\/span><\/p><\/td>

New Tier 1 Commercial Award for Sintered Magnet Facility in Europe:<\/b>\u00a0At its peak year, the electric vehicle traction motor magnets under this award will be equivalent to 35% of Phase 1 capacity.\u00a0 Facility construction is near completion \u2014 remaining on time and on budget.<\/span><\/p><\/td><\/tr>

4.<\/span><\/p><\/td>

Simplification of Business Continues:<\/b>\u00a0Neo 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.<\/span><\/p><\/td><\/tr>

5.<\/span><\/p><\/td>

Strategic Review:<\/b>\u00a0Neo’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.<\/span><\/p><\/td><\/tr><\/tbody><\/table>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Q2 2024 Highlights\n\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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(unless otherwise noted, all financial amounts in this news release are expressed in United States dollars)<\/i><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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