MP Materials Results Presentation Deck
12
Reconciliation: Net Income (Loss) to Adjusted EBITDA
(in thousands, unaudited)
Net income (loss)
Adjusted for:
Depreciation, depletion and amortization
Interest expense, net
Income tax expense (benefit)
Stock-based compensation expense(¹)
(2)
Start-up costs
Transaction-related and other non-recurring costs(³)
Accretion of asset retirement and environmental obligations
Loss on disposals of long-lived assets, net(4)
Other income, net(5)
Adjusted EBITDA
$
LA
$
For the three months ended September 30,
2023
2022
63,177
(4,276) $
16,751
1,396
(200)
6,298
7,082
1,642
227
1,087
(14,456)
15,551
$
2,096
1,224
20,934
7,806
1,383
502
418
(6,168)
91,372
$
$
For the three months
ended June 30,
2023
7,395
1. Principally included in "Selling, general and administrative" within our unaudited Condensed Consolidated Statements of Operations.
2. Relates to certain costs included in "Advanced projects, start-up, development and other" within our unaudited Condensed Consolidated Statements of Operations 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 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 pertain to legal, professional services, and other costs
associated with non-recurring transactions.
4. Amounts for the three months ended September 30, 2023, and June 30, 2023, principally relate to demolition costs incurred in connection with demolishing and removing certain out-of-use older facilities and infrastructure from the
Mountain Pass site to accommodate future expansion in rare earth processing.
5. Principally comprised of interest and investment income.
12,203
1,392
5,517
5,730
3,828
2,160
227
2,320
(13,821)
26,951
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