Q1 2023 Highlights
(unless otherwise
noted, all financial amounts in this news release are expressed in
U.S. dollars)
- Q1 2023 revenue of $135.5
million.
- Operating loss of $4.0 million in
the quarter.
- Adjusted Net Loss(1) of $9.0
million, or $(0.19) per
share.
- Adjusted EBITDA(1) of $0.8
million which included a charge of $5.6 million for inventories during the
quarter.
- Cash balance of $145.7 million
after distributing $3.4 million in
dividends to shareholders, a net cash improvement of $12.2 million from December 31, 2022.
- On April 19, 2023, Neo announced
the completion of its acquisition of 90% of the outstanding share
capital of SG Technologies Group Limited ("SGTec"), one of
Europe's leading advanced,
specialty manufacturers of rare-earth-based and other
high-performance magnets for industrial and commercial
markets.
- On April 24, 2023, Neo announced
that the Government of Greenland
had approved the transfer of an exploration license covering a
portion of the Sarfartoq Carbonatite Complex in southwest
Greenland, a prospective magnetic
rare earth property, from Hudson Resources, Inc. to Neo North Star
Resources Inc. ("NNSR"), a subsidiary controlled by Neo, and
that purchase of the license has been completed. The License has
been transferred to NNSR, on May 3,
2023, upon endorsement of a license addendum by the
government of Greenland.
- A quarterly dividend of Cdn$0.10
per common share was declared on May 10,
2023 for shareholders of record at June 20, 2023, with a payment date of
June 29, 2023.
TORONTO, May 12, 2023
/CNW/ - Neo Performance Materials Inc. ("Neo", the
"Company") (TSX: NEO) released its first quarter 2023
financial results. The financial statements and management's
discussion and analysis ("MD&A") of these results can be
viewed on Neo's web site at www.neomaterials.com/investors/ and on
SEDAR at www.sedar.com.
|
___________________________
|
|
(1) Neo
reports non-IFRS measures such as "Adjusted Net Income", "Adjusted
Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin"
and "EBITDA". Please see information on this and other non-IFRS
measures in the "Non-IFRS Measures" section of this new release and
in the MD&A, available on Neo's website at www.neomaterials.com
and on SEDAR at www.sedar.com.
|
HIGHLIGHTS OF Q1 2023
For the three months ended March 31,
2023, consolidated revenue was $135.5
million compared to $166.3
million for the same period in the prior year. Neo
reported a net loss of $10.7 million,
or $(0.23) per share, compared to a
net income of $22.7 million, or
$0.55 per share, in the same period
of 2022. Adjusted Net Loss(1) totaled $9.0 million, or $(0.19) per share, compared to an Adjusted Net
Income(1) of $23.5 million, or $0.57 per share, in the corresponding period of
the prior year. Adjusted EBITDA(1) was
$0.8 million, compared to Adjusted
EBITDA(1) of $33.1 million
in the first quarter of 2022. Adjusted EBITDA(1)
for the three months ended March 31,
2023 was negatively impacted by $5.6
million of provisions for inventories during the quarter,
compared to $0.6 million during the
corresponding period in 2022.
As of March 31, 2023, Neo had cash
and cash equivalents of $145.7
million plus restricted cash of $1.2
million, compared to $147.5
million plus $1.2 million as
at December 31, 2022. In the
three months ended March 31, 2023,
Neo distributed $3.4 million in
dividends to its shareholders. Neo generated positive net
cash of $12.2 million in the
period.
SELECTED FINANCIAL RESULTS
|
TABLE 1: Selected
Consolidated Results
|
|
Year-over-Year
Comparison
|
|
($000s)
|
Q1
2023
|
Q1
2022
|
|
Revenue
|
135,530
|
166,282
|
|
Operating (loss)
income
|
(3,997)
|
28,685
|
|
EBITDA(1)
|
(1,144)
|
33,384
|
|
Adjusted
EBITDA(1)
|
787
|
33,118
|
|
Adjusted EBITDA Margin
%(1)
|
0.6 %
|
19.9 %
|
|
_________________________
|
|
(1)Neo reports non-IFRS measures
such as "Adjusted Net Income", "Adjusted Earnings per Share",
"Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please
see information on this and other non-IFRS measures in the
"Non-IFRS Measures" section of this news release and in the
MD&A.
|
Neo reported operating loss of $4.0
million and net loss of $10.7
million for the three months ended March 31, 2023. Operating income in the three
months ended March 31, 2023, was
higher as compared to the prior-year period in the Rare Metals
segment but was lower in both the Magnequench and C&O
segments.
Adjusted EBITDA(I) also was higher in the quarter as
compared to the prior-year period in Rare Metals but was lower in
C&O and Magnequench.
|
_______________________________
|
|
(1)Neo
reports non-IFRS measures such as "Adjusted Net Income", "Adjusted
Earnings per Share", "Adjusted EBITDA", "Adjusted EBITDA Margin"
and "EBITDA". Please see information on this and other non-IFRS
measures in the "Non-IFRS Measures" section of this new release and
in the MD&A, available on Neo's website at www.neomaterials.com
and on SEDAR at www.sedar.com.
|
MAGNEQUENCH SEGMENT RESULTS
|
TABLE 2: Selected
Magnequench Results
|
|
Year-over-Year
Comparison
|
|
Q1
2023
|
Q1
2022
|
|
Volume
(tonnes)
|
987
|
1,305
|
|
($000s)
|
|
|
|
Revenue
|
55,165
|
74,015
|
|
Operating
income
|
955
|
10,236
|
|
EBITDA(1)
|
3,227
|
13,547
|
|
Adjusted
EBITDA(1)
|
3,256
|
12,778
|
|
_________________________
|
|
(1)Neo reports non-IFRS measures
such as "Adjusted Net Income", "Adjusted Earnings per Share",
"Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please
see information on this and other non-IFRS measures in the
"Non-IFRS Measures" section of this news release and in the
MD&A.
|
Volumes in the three months ended March 31,
2023 were lower primarily due to the impact of slower
economic activity in China which
experienced a slowdown after the removal of the COVID-19 zero
tolerance from December 2022. This lower economic activity
(particularly in durable goods) continued through the balance of
the quarter. Volumes were also negatively impacted by the
continued semi-conductor chip shortages, primarily in the
automotive industry.
Margins for Magnequench were lower in the quarter due to the
decline in rare earth magnetic prices in the quarter and lower
volume affecting absorption of production costs. Magnequench
has pass-through agreements on the vast majority of its contracts
so that in the long term, Magnequench expects to earn steadier
margins on its value-add conversion activities. However, in
the first quarter of 2023, with declining rare earth magnetic
prices, Magnequench has been passing through the lower replacement
costs while utilizing some of the higher cost inventory on
hand. Pass-through is a key strategic focus of Magnequench
and ensures that Magnequench focuses on generating long term
sustainable and value-added margins.
CHEMICALS & OXIDES ("C&O") SEGMENT RESULTS
|
TABLE 3: Selected
C&O Results
|
|
Year-over-Year
Comparison
|
|
($000s)
|
Q1
2023
|
Q1
2022
|
|
Revenue
|
51,289
|
67,662
|
|
Operating (loss)
income
|
(6,126)
|
18,477
|
|
EBITDA(1)
|
(5,523)
|
18,968
|
|
Adjusted
EBITDA(1)
|
(4,562)
|
19,910
|
|
_________________________
|
|
(1)Neo reports non-IFRS measures
such as "Adjusted Net Income", "Adjusted Earnings per Share",
"Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please
see information on this and other non-IFRS measures in the
"Non-IFRS Measures" section of this news release and in the
MD&A.
|
The C&O segment was negatively impacted by a steep decline
in rare earth prices during the quarter. Rare earth finished
good prices, particularly for the magnetic elements, declined
20%-30% from December 2022. This rapid decline had a negative
impact on rare earth separation margins as C&O processed raw
materials purchased three to five months ago (at higher raw
material input costs). The rapid decline, primarily in
March 2023, also necessitated C&O
to record a $6.4 million provision
for inventories in the first quarter of 2023. Volumes in rare
earth separation were also slower in the quarter related to the
slow down in the magnetics industry in China.
Volumes in the emissions catalyst business were down slightly
from prior year with a significant decline in volumes in
China (for the reasons noted
above) while other regions demonstrating growth. C&O's
environmentally protective water treatment solutions business
continues to perform well with higher volume and new customer
adoption.
RARE METALS SEGMENT RESULTS
|
TABLE 4: Selected
Rare Metals Results
|
|
Year-over-Year
Comparison
|
|
($000s)
|
Q1
2023
|
Q1
2022
|
|
Revenue
|
29,076
|
29,062
|
|
Operating
income
|
5,832
|
3,723
|
|
EBITDA(1)
|
5,207
|
4,512
|
|
Adjusted
EBITDA(1)
|
6,164
|
4,341
|
|
_________________________
|
|
(1)Neo reports non-IFRS measures
such as "Adjusted Net Income", "Adjusted Earnings per Share",
"Adjusted EBITDA", "Adjusted EBITDA Margin" and "EBITDA". Please
see information on this and other non-IFRS measures in the
"Non-IFRS Measures" section of this news release and in the
MD&A.
|
Rare Metals continued its strong earnings growth trend with a
strong first quarter of 2023. Hafnium pricing, in particular,
has continued its upward trajectory which began in the fourth
quarter of 2021. The recycling purchases and activities of
Rare Metals were particularly impactful to maintaining lower raw
material costs resulting in additional margins.
The Rare Metals business continues to make progress in several
key strategic initiatives, including selling more products outside
of the aerospace industry, expanding its customer base, and
diversifying its total end-market exposure. Key progress
continues to be made in expanding the capacity of key products
(with minimal capital investment) and refocusing the sales pipeline
and manufacturing capacity toward more profitable end products that
require higher purity and more demanding
specifications.
CONFERENCE CALL ON FRIDAY MAY 12,
2023 AT 10 AM EASTERN
Management will host a teleconference call on Friday May 12, 2023 at 10:00 a.m. (Eastern Time) to discuss the first
quarter 2023 results. Interested parties may access the
teleconference by calling (416) 764-8650 (local) or (888)
664-6383 (toll-free long distance) or by visiting
http://cnw.en.mediaroom.com/events. A recording of the
teleconference may be accessed by calling (416) 764-8677 (local) or
(888) 390-0541 (toll-free long distance), and entering pass code
029840# until June 12, 2023.
NON-IFRS MEASURES
This news release refers to certain non-IFRS financial measures
and ratios such as "Adjusted Net Income", "EBITDA", "Adjusted
EBITDA", and "Adjusted EBITDA Margin". These measures and
ratios 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 and ratios are provided as additional information to
complement IFRS financial measures by providing further
understanding of Neo's results of operations from management's
perspective. Neo'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 and ratios have limitations as analytical tools and should
not be considered in isolation nor as a substitute for analysis of
Neo's financial information reported under IFRS. Neo uses
non-IFRS financial measures and ratios 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 and ratios in the evaluation of issuers.
Neo's management also uses non-IFRS financial measures in order to
facilitate operating performance comparisons from period to period.
For definitions of how Neo defines such financial measures and
ratios, please see the "Non-IFRS Financial Measures" section of
Neo's management's discussion and analysis filing for the three
months ended March 31, 2023,
available on Neo's web site at www.neomaterials.com and on SEDAR at
www.sedar.com.
TABLE 5: CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION
|
($000s)
|
|
March 31,
2023
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
|
Current
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
145,742
|
|
$
147,491
|
|
Restricted
cash
|
|
1,192
|
|
1,179
|
|
Accounts
receivable
|
|
65,998
|
|
81,409
|
|
Inventories
|
|
187,646
|
|
212,702
|
|
Income taxes
receivable
|
|
1,260
|
|
355
|
|
Other current
assets
|
|
29,788
|
|
23,279
|
|
Total current
assets
|
|
431,626
|
|
466,415
|
|
Property, plant and
equipment
|
|
78,162
|
|
75,767
|
|
Intangible
assets
|
|
42,198
|
|
42,984
|
|
Goodwill
|
|
66,613
|
|
66,042
|
|
Investments
|
|
15,994
|
|
16,363
|
|
Deferred tax
assets
|
|
8,706
|
|
6,956
|
|
Other non-current
assets
|
|
1,531
|
|
1,933
|
|
Total non-current
assets
|
|
213,204
|
|
210,045
|
|
Total
assets
|
|
$
644,830
|
|
$
676,460
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
Current
|
|
|
|
|
|
Bank advances and other
short-term debt
|
|
$
3,222
|
|
$
17,288
|
|
Accounts payable and
other accrued charges
|
|
57,765
|
|
69,093
|
|
Income taxes
payable
|
|
9,097
|
|
10,033
|
|
Provisions
|
|
1,347
|
|
1,369
|
|
Lease
obligations
|
|
1,394
|
|
1,264
|
|
Derivative
liability
|
|
31,990
|
|
28,570
|
|
Current portion of
long-term debt
|
|
763
|
|
747
|
|
Other current
liabilities
|
|
599
|
|
278
|
|
Total current
liabilities
|
|
106,177
|
|
128,642
|
|
Long-term
debt
|
|
29,902
|
|
29,885
|
|
Employee
benefits
|
|
473
|
|
489
|
|
Provisions
|
|
24,387
|
|
23,604
|
|
Deferred tax
liabilities
|
|
14,207
|
|
13,942
|
|
Lease
obligations
|
|
1,544
|
|
813
|
|
Other non-current
liabilities
|
|
1,443
|
|
1,442
|
|
Total non-current
liabilities
|
|
71,956
|
|
70,175
|
|
Total
liabilities
|
|
178,133
|
|
198,817
|
|
Non-controlling
interest
|
|
2,949
|
|
3,193
|
|
Equity attributable to
equity holders of Neo Performance Materials Inc.
|
|
463,748
|
|
474,450
|
|
Total
equity
|
|
466,697
|
|
477,643
|
|
Total liabilities
and equity
|
|
$
644,830
|
|
$
676,460
|
|
____________________________
|
|
See accompanying
notes to this table in Neo's Interim Condensed Consolidated
Financial Statements for the Three Months Ended March 31, 2023,
available on Neo's website at www.neomaterials.com and on SEDAR at
www.sedar.com.
|
TABLE 6: CONSOLIDATED RESULTS OF OPERATIONS
Comparison of the three months ended March 31, 2023 to the three months ended
March 31, 2022:
|
($000s)
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
|
Revenue
|
|
$
135,530
|
|
$
166,282
|
|
Costs of
sales
|
|
|
|
|
|
Costs excluding
depreciation and amortization
|
|
116,621
|
|
114,316
|
|
Depreciation and
amortization
|
|
2,168
|
|
2,378
|
|
Gross
profit
|
|
16,741
|
|
49,588
|
|
Expenses
|
|
|
|
|
|
Selling, general and
administrative
|
|
14,871
|
|
14,252
|
|
Share-based
compensation
|
|
850
|
|
181
|
|
Depreciation and
amortization
|
|
1,766
|
|
1,896
|
|
Research and
development
|
|
3,251
|
|
4,574
|
|
|
20,738
|
|
20,903
|
|
Operating (loss)
income
|
|
(3,997)
|
|
28,685
|
|
Other
expense
|
|
(478)
|
|
(433)
|
|
Finance cost,
net
|
|
(4,012)
|
|
(414)
|
|
Foreign exchange
loss
|
|
(580)
|
|
(411)
|
|
(Loss) income from
operations before income taxes and equity income of
associates
|
|
(9,067)
|
|
27,427
|
|
Income tax
expense
|
|
(1,610)
|
|
(5,995)
|
|
(Loss) income from
operations before equity income of associates
|
|
(10,677)
|
|
21,432
|
|
Equity (loss) income
of associates (net of income tax)
|
|
(23)
|
|
1,269
|
|
Net (loss)
income
|
|
$
(10,700)
|
|
$
22,701
|
|
Attributable
to:
|
|
|
|
|
|
Equity holders of
Neo
|
|
$
(10,454)
|
|
$
22,350
|
|
Non-controlling
interest
|
|
(246)
|
|
351
|
|
|
$
(10,700)
|
|
$
22,701
|
|
(Loss) earnings per
share attributable to equity holders of Neo:
|
|
|
|
|
|
Basic
|
|
$
(0.23)
|
|
$
0.55
|
|
Diluted
|
|
$
(0.23)
|
|
$
0.54
|
|
____________________________
|
|
See Management's
Discussion and Analysis for the Three Months Ended March 31, 2023,
available on Neo's website at www.neomaterials.com and on SEDAR at
www.sedar.com.
|
TABLE 7: RECONCILIATION OF NET (LOSS) INCOME TO EBITDA, ADJUSTED
EBITDA AND FREE CASH FLOW
|
($000s)
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
|
$
(10,700)
|
|
$
22,701
|
|
Add back
(deduct):
|
|
|
|
|
|
Finance cost,
net
|
|
4,012
|
|
414
|
|
Income tax
expense
|
|
1,610
|
|
5,995
|
|
Depreciation and
amortization included in costs of sales
|
|
2,168
|
|
2,378
|
|
Depreciation and
amortization included in operating expenses
|
|
1,766
|
|
1,896
|
|
EBITDA
|
|
(1,144)
|
|
33,384
|
|
Adjustments to
EBITDA:
|
|
|
|
|
|
Other expense
(1)
|
|
478
|
|
433
|
|
Foreign exchange loss
(2)
|
|
580
|
|
411
|
|
Equity loss (income)
of associates
|
|
23
|
|
(1,269)
|
|
Share-based
compensation (3)
|
|
850
|
|
181
|
|
Other recoveries
(4)
|
|
—
|
|
(22)
|
|
Adjusted EBITDA
(5)
|
|
$
787
|
|
$
33,118
|
|
Adjusted EBITDA
Margins (5)
|
|
0.6 %
|
|
19.9 %
|
|
Less:
|
|
|
|
|
|
Capital
expenditures
|
|
$
5,016
|
|
$
6,782
|
|
Free Cash Flow
(5)
|
|
$
(4,229)
|
|
$
26,336
|
|
Free Cash Flow
Conversion (5)
|
|
(537.4 %)
|
|
79.5 %
|
|
Notes:
|
|
|
(1)
|
Represents other
expenses resulting from non-operational related activities,
including provisions for damages for outstanding legal claims
related to historic volumes. These costs and recoveries are
not indicative of Neo's ongoing activities.
|
|
|
|
(2)
|
Represents unrealized
and realized foreign exchange losses (gains) that include non-cash
adjustments in translating foreign denominated monetary assets and
liabilities.
|
|
|
|
(3)
|
Represents share-based
compensation expense in respect of the Plan and the
LTIP.
|
|
|
|
(4)
|
These represent
primarily legal, professional advisory fees and other transaction
costs incurred with respect to non-operating capital structure
related transactions. Neo has removed these charges to
provide comparability with historic periods.
|
|
|
|
(5)
|
Neo reports non-IFRS
measures such as "Adjusted Net Income", "Adjusted Earnings per
Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash
Flow" and "Free Cash Flow Conversion". Please see information on
this and other non-IFRS measures in the "Non-IFRS Measures" section
of this new release and in the MD&A, available on Neo's website
www.neomaterials.com and on SEDAR at www.sedar.com.
|
TABLE 8: RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET (LOSS)
INCOME
|
($000s)
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
|
Net (loss)
income
|
|
$
(10,700)
|
|
$
22,701
|
|
Adjustments to net
(loss) income:
|
|
|
|
|
|
Foreign exchange loss
(1)
|
|
580
|
|
411
|
|
Share-based
compensation (2)
|
|
850
|
|
181
|
|
Other recoveries
(3)
|
|
—
|
|
(22)
|
|
Other items included
in other expense (4)
|
|
407
|
|
547
|
|
Tax impact of the
above items
|
|
(118)
|
|
(353)
|
|
Adjusted net (loss)
income (5)
|
|
$
(8,981)
|
|
$
23,465
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
Equity holders of
Neo
|
|
$
(8,735)
|
|
$
23,114
|
|
Non-controlling
interest
|
|
$
(246)
|
|
$
351
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
Basic
|
|
45,196,921
|
|
40,681,191
|
|
Diluted
|
|
45,196,921
|
|
41,149,323
|
|
Adjusted earnings
(loss) per share (5) attributable to equity holders of
Neo:
|
|
Basic
|
|
$
(0.19)
|
|
$
0.57
|
|
Diluted
|
|
$
(0.19)
|
|
$
0.56
|
|
Notes:
|
|
|
(1)
|
Represents unrealized
and realized foreign exchange losses (gains) that include non-cash
adjustments in translating foreign denominated monetary assets and
liabilities.
|
|
|
|
(2)
|
Represents share-based
compensation expense in respect of the Plan and the
LTIP.
|
|
|
|
(3)
|
These represent
primarily legal, professional advisory fees and other transaction
costs incurred with respect to non-operating capital structure
related transactions. Neo has removed these charges to
provide comparability with historic periods.
|
|
|
|
(4)
|
Represents other
expenses resulting from non-operational related activities,
including provisions for damages for outstanding legal claims
related to historic volumes. These costs and recoveries are
not indicative of Neo's ongoing activities.
|
|
|
|
(5)
|
Neo reports non-IFRS
measures such as "Adjusted Net Income", "Adjusted Earnings per
Share", "Adjusted EBITDA", "Adjusted EBITDA Margin", "Free Cash
Flow" and "Free Cash Flow Conversion". Please see information on
this and other non-IFRS measures in the "Non-IFRS Measures" section
of this new release and in the MD&A, available on Neo's website
www.neomaterials.com and on SEDAR at www.sedar.com.
|
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies
that enhance efficiency and sustainability. Neo's advanced
industrial materials - magnetic powders and magnets, specialty
chemicals, metals, and alloys - are critical to the performance of
many everyday products and emerging technologies. Neo's products
help to deliver the technologies of tomorrow to consumers
today. The business of Neo is organized along three segments:
Magnequench, Chemicals & Oxides and Rare Metals. Neo is
headquartered in Toronto, Ontario,
Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that
includes 9 manufacturing facilities located in China, the United
States, Germany,
Canada, Estonia, and Thailand, as well as one dedicated research
and development centre in Singapore. For more information,
please visit www.neomaterials.com.
Cautionary Statements Regarding Forward Looking
Statements
This news release contains "forward-looking information" within
the meaning of applicable securities laws in Canada. Forward-looking information may relate
to future events or future performance of Neo. All statements in
this release, other than statements of historical facts, with
respect to Neo'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, the following: expectations
regarding certain of Neo's future results and information,
including, among other things, revenue, expenses, sales growth,
capital expenditures, and operations; statements with respect to
current and future market trends that may directly or indirectly
impact sales and revenue of Neo; 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; risk factors relating to national or international
economies (including the impact of COVID-19), and other risks
present in the jurisdictions in which Neo, its customers, its
suppliers, and/or its logistics partners operate, and; expectations
concerning any remediation efforts to Neo'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 "plans", "expects", "is
expected", "budget", "scheduled", "estimates", "continues",
"forecasts", "projects", "predicts", "intends", "anticipates" or
"believes", or variations of, or the negatives of, such words and
phrases, or state that certain actions, events or results "may",
"could", "would", "should", "might" or "will" 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. Neo 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 Neo, investors should review Neo's continuous
disclosure filings that are available under Neo's profile at
www.sedar.com.
SOURCE Neo Performance Materials, Inc.