Livent Corp. (NYSE:LTHM) Q4 2018 Earnings Conference Call Transcript

Feb 12, 2019 • 08:00 am ET


Livent Corp. (NYSE:LTHM) Q4 2018 Earnings Conference Call Transcript


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Good morning, and welcome to the Fourth Quarter 2018 Earnings Release Conference Call for the Livent Corporation. Phone lines will be placed on listen-only mode throughout the conference. After the speakers' presentation, there will be a question-and-answer period.

I will now turn the conference over to Mr. Rasmus Gerdeman, Chief Strategy and Investor Relations Officer for the Livent Corporation. Mr. Gerdeman, you may begin.

Rasmus Gerdeman

Thank you, Sharon. Good morning, everyone, and welcome to Livent Corporation's fourth quarter earnings call. Joining me today are Paul Graves, President and Chief Executive Officer; Gilberto Antoniazzi, Chief Financial Officer. Paul will review our fourth quarter performance and provide the outlook for the full year and the first quarter of 2019. Gilberto will then provide an overview of select financial results.

The slide presentation that accompanies our results, along with our earnings release, which includes our 2019 outlook are available on our website, and the prepared remarks from today's discussion will be made available after the call. Tom Schneberger, Chief Operating Officer will then join Paul and Gilberto to address your questions.

Please note that we intend to complete today's call in 45 minutes to allow FMC's fourth quarter earnings call to begin promptly at 9:00 am Eastern Standard Time. Additionally, we would ask that you -- that any questions following our prepared remarks will be limited to one per caller. We would be happy to address any additional questions directly after the call.

Before we begin, let me remind you that today's discussion will include forward-looking statements that are subject to various risks and uncertainties concerning specific factors, including, but not limited to those factors identified in our release and in our filings with the Securities and Exchange Commission. Information presented represents our best judgment based on today's information. Actual results may vary based upon these risks and uncertainties.

Today's discussion will focus on adjusted earnings for all income statement and EPS references. A reconciliation and definition of these terms as well as other non-GAAP financial terms to which we may refer during today's conference call are provided on our website.

With that, I will turn the call over to Paul. Paul?

Paul Graves

Thank you, Rasmus, and good morning, everyone. Today, I will review Livent's fourth quarter and full year 2018 financial results and walk you through our guidance for the first quarter and full year 2019 in detail. I will also review current market conditions and summarize the outcome of our 2019 contract negotiations. We've heard from investors about the opacity of our industry, and I hope that what we share today will provide a better understanding of both Livent and of our industry.

2018 was an important year for Livent and we finished the year well. As set out on slide three, revenue in the fourth quarter was 6% higher than the same period last year, largely due to higher volumes. With no additional capacity added in the quarter, the higher volumes came from increased operating rates at both our China and US lithium