Li-Cycle(US:LICY)2024-05-10 10:36Financial Performance - Total revenue for Q1 2024 was $4.2 million, a 17% increase from $3.6 million in Q1 2023, driven by lower unfavorable fair market value pricing adjustments[12]. - Net loss for Q1 2024 was $136.7 million, compared to a net loss of $36.5 million in the same period last year, largely due to increased other expenses[15]. - Adjusted EBITDA loss improved to approximately $27.4 million from a loss of $37.9 million in Q1 2023, reflecting higher revenue and lower cost of sales[16]. - Total revenue for Q1 2024 was $4.2 million, an increase of 16.7% compared to $3.6 million in Q1 2023[35]. - The net loss for Q1 2024 was $136.7 million, compared to a net loss of $138.0 million in Q1 2023[35]. - Net loss for the period increased to $136.7 million for Q1 2024, compared to a loss of $36.5 million in Q1 2023[36]. Cost Management - Cost of sales decreased by 12% to $16.8 million compared to $19.1 million in Q1 2023, with a 17% reduction in costs attributable to product revenue[13]. - Selling, general and administrative (SG&A) expenses rose to $31.7 million from $22.7 million in 2023, primarily due to non-recurring professional fees and severance costs[14]. - Product revenue decreased to $1.9 million from $3.1 million year-over-year, while recycling service revenue increased to $2.3 million from $0.5 million[35]. - Total cost of sales for Q1 2024 was $16.8 million, down from $19.1 million in Q1 2023[35]. - The company expects approximately $10 million in annualized payroll and benefit cost savings from workforce reductions and transitioning to a centralized model[27]. - Li-Cycle anticipates total charges of approximately $8.3 million related to workforce reductions over the next twelve months[27]. Cash and Liquidity - Cash and cash equivalents at the end of Q1 2024 were $109.1 million, up from $70.6 million at the end of 2023, primarily due to proceeds from a $75 million investment by Glencore[18]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $118.7 million, down from $409.2 million at the beginning of the period[36]. - Net cash used in operating activities was $29.1 million for Q1 2024, up from $22.4 million in Q1 2023[36]. - Proceeds from convertible debt amounted to $75.0 million in Q1 2024, with no such proceeds in Q1 2023[36]. - Net cash provided by financing activities was $73.7 million in Q1 2024, with no financing activities reported in Q1 2023[36]. Assets and Liabilities - Total assets rose to $932.3 million as of March 31, 2024, compared to $886.0 million at the end of 2023[33]. - Total liabilities increased to $689.3 million as of March 31, 2024, up from $509.6 million at December 31, 2023[33]. - Accounts payable and accrued liabilities increased to $4.3 million in Q1 2024, compared to $2.8 million in Q1 2023[36]. Strategic Initiatives - The company is advancing its Rochester Hub project, focusing on refining cost estimates for the mixed hydroxide precipitate (MHP) approach, which is critical for battery supply chains[8]. - Li-Cycle entered into new recycling agreements with three major EV manufacturers in Europe, expanding its partnerships in the region[10]. - Li-Cycle received a grant of up to €6.4 million (approximately $6.9 million) from the German state of Saxony-Anhalt for its Germany Spoke project[5]. Challenges and Outlook - The company continues to face significant expenses and may not achieve profitability in the near term[30]. - Interest and accretion on convertible debt increased to $11.5 million in Q1 2024 from $1.1 million in Q1 2023[36]. - Fair value loss on financial instruments was $23.8 million in Q1 2024, compared to $0.7 million in Q1 2023[36]. - Inventory write-downs to net realizable value were $1.8 million in Q1 2024, slightly down from $2.1 million in Q1 2023[36]. - Purchases of property, plant, equipment, and other assets decreased significantly to $6.2 million in Q1 2024 from $86.3 million in Q1 2023[36].