Q2 2022 Highlights
- Revenue in Q2 2022 increased by 52%, reaching $72.4 million, compared to $47.7 million for the same period last year, supported by higher demand in Specialty Semiconductors, as well as pharmaceutical and health in Performance Materials. Not accounting for the contribution from AZUR SPACE Solar Power GmbH ("AZUR"), revenue increased by 20% compared to Q2 2021.
- Adjusted EBITDA in Q2 2022 reached $8.6 million, compared to $6.3 million for the same period last year. Adjusted EBITDA increased by $3.1 million under Specialty Semiconductors, and $0.4 million under Performance Materials despite the impact of inflation and supply challenges.
- On June 30, 2022, the backlog1 represented 140 days of annualized revenue, 56 days lower than the previous quarter. The net difference in backlog is largely attributable to the timing of negotiations for long-term contracts, the quarterly realization of long-term contracts under negotiation for renewal in the coming quarters and our commercial go-to-market strategy to effectively mitigate the impact of inflation.
- Net debt1 stood at $89.6 million on June 30, 2022, from $80.1 million at the end of last year, the increase reflecting additional working capital required at this time of the year.
- On May 11, 5N Plus announced that it has reached a strategic commercial agreement with Rio Tinto to refine the tellurium to be produced at its Kennecott copper operation in Utah. An important step towards securing a North American supply chain of critical minerals to support the clean energy transition and other technological advancements.
- On June 16, 5N Plus announced the renewal of its $124.0 million senior secured multi-currency revolving syndicated credit facility to fund operations and growth initiatives. The facility can be increased to $154.0 million through a $30.0 million accordion feature.
"Our strong revenue and earnings growth in Q2 2022 demonstrates the adaptability of our business, that we are focusing on the right end markets across both segments, and that our past investments and commercial initiatives are bearing fruit in the context of high inflation and complex global market dynamics. We will continue to pursue our growth and business strategy with discipline, focusing on value-added markets and value-creating client partnerships, while strategically investing in our business to expand our total addressable market," said Gervais Jacques, President and CEO of 5N Plus.