MP Materials Investor Presentation Deck
Reconciliation: Net Income to Adjusted EBITDA
16
(in thousands, unaudited)
Net income
Adjusted for:
Depreciation, depletion and amortization
Interest expense, net
Income tax expense
Stock-based compensation expense(1)
Start-up costs(2)
Transaction-related and other non-recurring costs (3)
Accretion of asset retirement and environmental obligations
Loss on sale or disposal of long-lived assets, net
Other income, net(4)
Adjusted EBITDA
$
LA
$
For the twelve
months ended
June 30, 2023
175,026
28,014
5,306
14,381
27,310
13,504
7,130
1,094
4,943
(44,635)
232,073
1. Principally included in "Selling, general and administrative" within our unaudited Condensed Consolidated Statements of Operations.
2. Relates to certain costs that do not qualify for capitalization incurred in connection with the initial commissioning and starting up of our separations capability at Mountain Pass and our metal alloy and magnet-making capabilities at
Fort Worth prior to the achievement of commercial production. These costs include payroll of employees directly involved in such commissioning activities, training costs, costs of testing and commissioning the new circuits and
processes, and other related costs. Given the nature and scale of the related costs and activities, management does not view these as normal, recurring operating expenses, but rather as non-recurring investments to develop such
capabilities. Therefore, we believe it is useful and necessary for investors to understand our core operating performance in current and future periods by excluding the impact of these start-up costs.
3. The majority of the amounts are included in "Advanced projects, start-up, development and other" within our unaudited Condensed Consolidated Statements of Operations, and pertains to legal, professional services, and other
costs associated with non-recurring transactions.
4. Amounts for the twelve months ended June 30, 2023, and 2022, are principally comprised of interest and investment income.
MP MATERIALSView entire presentation