Achieved Adjusted EBITDA at the high end of
the guided range
Generated free cash flow above
expectations
STAMFORD, Conn., July 26,
2023 /PRNewswire/ -- Tronox Holdings plc (NYSE:TROX)
("Tronox" or the "Company"), the world's leading integrated
manufacturer of titanium dioxide ("TiO2") pigment, today
reported its financial results for the quarter ending June 30, 2023, as follows:
Second Quarter 2023 Financial Highlights:
- Produced revenue of $794 million,
a 12% increase compared to the prior quarter, or a 16% decrease
compared to the prior year
- Generated income from operations of $84
million, and a net loss of $269
million, inclusive of a valuation allowance of $293 million established against the deferred tax
assets within our Australia
jurisdiction; adjusted net income was $24
million (non-GAAP)
- GAAP diluted EPS was $(1.72);
achieved adjusted diluted EPS of $0.16 (non-GAAP)
- Delivered Adjusted EBITDA of $168
million, at the high end of the guided range, and an
Adjusted EBITDA margin of 21.2%
- Invested $55 million in capital
expenditures in the quarter
- Generated $81 million in free
cash flow in the quarter
Q3 2023 Outlook:
- TiO2 volumes expected to be relatively flat to Q2
2023 levels
- Zircon volumes expected to decline by 15 to 20 thousand tons
versus Q2 2023
- Adjusted EBITDA expected to be $115-135 million
This outlook is based on Tronox's views on current global
economic activity and is subject to changes and impacts associated
with the macroeconomic conditions, global supply chain, and
inflation-related challenges, among others.
Note: For the Company's guidance with respect to third
quarter 2023 non-GAAP measures, we are not able to provide without
unreasonable effort the most directly comparable GAAP financial
measure, or reconciliation to such GAAP financial measure, because
certain items that impact such measures are uncertain, out of the
Company's control or cannot be reasonably predicted.
Summary of Select Financial Results for the Quarter Ending
June 30, 2023
($M unless otherwise noted)
|
|
Q2 2023
|
Q2 2022
|
Y-o-Y % ∆
|
Q1 2023
|
Q-o-Q % ∆
|
Revenue
|
|
$794
|
$945
|
(16) %
|
$708
|
12 %
|
TiO2
|
|
$611
|
$769
|
(21) %
|
$560
|
9 %
|
Zircon
|
|
$95
|
$111
|
(14) %
|
$72
|
32 %
|
Other products
|
$88
|
$65
|
35 %
|
$76
|
16 %
|
Income from
operations
|
|
$84
|
$190
|
(56) %
|
$62
|
35 %
|
Net (Loss)
Income
|
|
($269)
|
$375
|
(172) %
|
$25
|
n/m
|
Net (Loss) Income
attributable to Tronox
|
($269)
|
$375
|
(172) %
|
$23
|
n/m
|
GAAP diluted (loss)
earnings per share
|
($1.72)
|
$2.37
|
(173) %
|
$0.15
|
n/m
|
Adjusted diluted
earnings per share
|
$0.16
|
$0.84
|
(81) %
|
$0.15
|
7 %
|
Adjusted
EBITDA
|
|
$168
|
$275
|
(39) %
|
$146
|
15 %
|
Adjusted EBITDA Margin %
|
|
21.2 %
|
29.1 %
|
(790) bps
|
20.6 %
|
60
bps
|
Free cash
flow
|
|
$81
|
($67)
|
n/m
|
($172)
|
n/m
|
|
|
|
|
|
|
|
|
Y-o-Y % ∆
|
Q-o-Q % ∆
|
|
Volume
|
Price
|
FX
|
Volume
|
Price
|
FX
|
TiO2
|
(22) %
|
1 %
|
1 %
|
9 %
|
(1) %
|
1 %
|
Zircon
|
(21) %
|
7 %
|
— %
|
33 %
|
(1) %
|
— %
|
Co-CEOs' Remarks and Outlook
"Our solid second quarter performance was a result of continued
market recovery from the first quarter and our ongoing discipline
around costs," commented Jean-François Turgeon, co-chief executive
officer. "The Company achieved an Adjusted EBITDA of $168 million, at the high end of our previously
guided range of $160 to $170 million and an Adjusted EBITDA margin of
21.2%, above our expectations. We continue to deliver against our
commercial strategy and realize relatively stable pricing trends
despite volumes remaining well below seasonally normal levels - a
reflection of Tronox's differentiated offering. Tronox's results
continue to demonstrate the strength and advantage of vertical
integration. These results would not be possible without the hard
work and dedication of our global employees, and we thank the team
for their commitment to Tronox."
Mr. Turgeon added, "We are continuing to run our operating sites
at reduced rates as a result of lower demand levels in order to
manage inventory and cash. We generated $81
million in free cash flow, greater than previously
anticipated, as a result of the team's proactive approach to
aligning the business with current market conditions. We remain
very focused on managing working capital. We will continue to
balance the medium- and long-term strategic needs of the business
to position Tronox for future success while ensuring we are taking
the right decisions to manage what is within our control in the
short term against the current macroeconomic landscape."
John D. Romano, co-chief
executive officer, commented, "Looking ahead, we expect pigment
volumes to be relatively flat to the second quarter, as we expect
demand to remain higher than the trough levels seen in Q4 2022. Our
commercial strategy and differentiated offering have enabled more
stable pricing trends than during previous years of demand
decline. On zircon, we expect a more challenging second half
of 2023 than previously anticipated, driven by continued weak
market dynamics in China. At this
time, based on our current market outlook, we expect zircon volumes
for the third quarter to decline by 15 to 20 thousand tons from
second quarter 2023 levels. As a result of these market dynamics,
we anticipate Adjusted EBITDA for the third quarter 2023 to be
$115-135 million. This range includes
$35 million of impacts to EBITDA
resulting from adjusting the production rates of both our pigment
and mining sites to better align with the latest market demand
levels and manage working capital and free cash flow."
Mr. Romano concluded, "We strongly believe in our strategy of
being vertically integrated and the value that it provides to our
customers. As a result of our unique portfolio, we are currently
evaluating a range of options to leverage our expertise to further
unlock the value of the rare earths generated from our operations.
Our differentiated, integrated position sets us apart as a global
leader in sustainable mining and upgrading solutions."
Second Quarter 2023 Results
(Comparisons are to
prior year (Q2 2023 vs. Q2 2022) unless otherwise noted)
The Company recorded second quarter revenue of $794 million, a decrease of 16%, primarily driven
by lower sales volumes of TiO2 and zircon and lower pig
iron prices, partially offset by higher TiO2 and zircon
average selling prices and higher pig iron volumes.
Revenue from TiO2 sales was $611 million, a decline of 21% driven by a 22%
decline in volumes, partially offset by a 1% increase in average
selling prices and a 1% favorable exchange rate impact.
Sequentially, TiO2 sales increased 9%, driven by a 9%
increase in sales volumes, with a 1% decline in average selling
prices offset by a 1% favorable exchange rate impact.
Zircon revenue decreased 14% to $95
million driven by a 21% decline in volumes, partially offset
by a 7% increase in average selling prices. Sequentially, zircon
revenue increased 32%, driven by a 33% increase in volumes
partially offset by a 1% decrease in average selling prices.
Revenue from other products was $88
million, an increase of 35% year-over-year, primarily due to
both higher pig iron sales volumes and higher revenue from rare
earths elements, partially offset by lower average selling prices
of pig iron. Rare earths elements sales increased 87%
year-over-year.
Net loss attributable to Tronox in the quarter of $269 million, or $1.72 per diluted share, compared to net income
attributable to Tronox of $375
million, or $2.37 per diluted
share in the year-ago period. Excluding a non-recurring adjustment
of a valuation allowance in Australia relating to deferred tax assets
totaling $293 million, adjusted net
income attributable to Tronox (non-GAAP) was $24 million, or $0.16 per diluted share.
Adjusted EBITDA of $168 million
represented a 39% decrease compared to the second quarter 2022,
driven by unfavorable fixed cost absorption due to lower production
rates, lower sales volumes and lower pig iron pricing, partially
offset by favorable exchange rate tailwinds and lower freight
costs. Adjusted EBITDA margin was 21.2% for the quarter.
Sequentially, Adjusted EBITDA increased 15% due to higher
product sales volumes and favorable exchange rate tailwinds,
partially offset by lower average selling prices and higher freight
costs associated with higher volumes.
The Company's selling, general and administrative expenses were
unchanged at $73 million for the
quarter compared to the year-ago quarter. Tronox's net interest
expense in the quarter was $35 million. Depreciation,
depletion and amortization expense was $68 million.
Balance Sheet, Cash Flow and Capital Allocation
Tronox ended the quarter with $2.7
billion of total debt and a net leverage ratio of 3.8x on a
trailing twelve-month basis. Available liquidity at the end of the
quarter totaled $447 million,
including $167 million in cash and
cash equivalents and $280 million
available under our revolving credit agreements. There are no
significant debt maturities until 2028 and no financial covenants
on the Company's term loans or bonds.
Free cash flow for the quarter was $81
million. Capital expenditures were $55 million. The Company returned $50 million to shareholders in the form of
dividends in the quarter, which included payments for both first
and second quarter declared dividends.
Sustainability
The Company released its 2022 Sustainability Report in May,
detailing the significant steps taken over the last year to advance
its leadership role in sustainability and protecting the
environment. Key initiatives that Tronox took in 2022 included:
reinforcing Scope 1 and 2 carbon intensity reduction targets of 35%
by 2025 and 50% by 2030 against a 2019 baseline; creating regional
decarbonization roadmaps that will be integral to meeting the
Company's net zero by 2050 goal; setting Scope 3 emissions targets
to decrease emissions intensity by 9% by 2025 and 16% by 2030
against a 2021 baseline; and recommitting to reducing waste to
external landfills by 10% on an absolute basis from the 2019
baseline, keeping on course to meet the 2025 and 2030 reduction
targets of 15% and 25%, respectively. Please visit our website and
download our 2022 Sustainability Report to learn more about these
initiatives and more underway at Tronox.
Webcast Conference Call
Tronox will conduct a webcast conference call on Thursday, July 27, 2023, at 8:00 a.m. ET (New
York). The live call is open to the public via
internet broadcast and telephone.
Internet Broadcast:
http://investor.tronox.com
Dial-in Telephone Numbers:
United States: +1 (888) 259-6580
International: +44 8006522 435
Conference Call Presentation Slides will be used during
the conference call and made available on our website:
http://investor.tronox.com
Conference Call Replay: Available via the internet and
telephone beginning on July 27, 2023,
by
11:00 a.m. ET, until August 2, 2023, 11:59 p.m.
ET.
Internet Replay:
http://investor.tronox.com
Replay Dial-in Telephone Numbers:
United States: +1 (888) 664-6368
International: +44 20 3870 9958
Replay Access Code: 238809 #
About Tronox
Tronox Holdings plc is one of the world's leading producers of
high-quality titanium products, including titanium dioxide pigment,
specialty-grade titanium dioxide products and high-purity titanium
chemicals, and zircon. We mine titanium-bearing mineral sands and
operate upgrading facilities that produce high-grade titanium
feedstock materials, pig iron and other minerals, including the
rare earth-bearing mineral, monazite. With approximately 6,500
employees across six continents, our rich diversity, unmatched
vertical integration model, and unparalleled operational and
technical expertise across the value chain, position Tronox as the
preeminent titanium dioxide producer in the world. For more
information about how our products add brightness and durability to
paints, plastics, paper and other everyday products, visit
tronox.com.
Cautionary Statement about Forward-Looking Statements
Statements in this release that are not historical are
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These forward-looking
statements, which are subject to known and unknown risks,
uncertainties and assumptions about us, may include projections of
our future financial performance, anticipated completion of
extensions and upgrades to our mining operations, anticipated
trends in our business and industry, anticipated costs, benefits
and timing of project newTRON and Atlas Campaspe, the Company's
anticipated capital allocation strategy including future capital
expenditures, and our sustainability goals, commitments and
programs. These statements are only predictions based on our
current expectations and projections about future events. There are
important factors that could cause our actual results, level of
activity, performance, actual costs, benefits and timing of capital
projects, or achievements to differ materially from the results,
level of activity, performance, anticipated costs, benefits and
timing of capital projects, or achievements expressed or implied by
the forward-looking statements. Significant risks and uncertainties
may relate to, but are not limited to, macroeconomic conditions;
inflationary pressures and energy costs; currency movements;
political instability, including the ongoing Russia and Ukraine conflict and any expansion of such
conflict; supply chain disruptions; market conditions and price
volatility for titanium dioxide, zircon and other feedstock
materials, as well as global and regional economic downturns, that
adversely affect the demand for our end-use products; disruptions
in production at our mining and manufacturing facilities; and other
financial, economic, competitive, environmental, political, legal
and regulatory factors. These and other risk factors are discussed
in the Company's filings with the Securities and Exchange
Commission.
Moreover, we operate in a very competitive and rapidly changing
environment. New risks and uncertainties emerge from time to time,
and it is not possible for our management to predict all risks and
uncertainties, nor can management assess the impact of all factors
on our business or the extent to which any factor, or combination
of factors, may cause actual results to differ materially from
those contained in any forward-looking statements. Although we
believe the expectations reflected in the forward-looking
statements are reasonable, we cannot guarantee future results,
level of activity, performance, synergies or achievements. Neither
we nor any other person assumes responsibility for the accuracy or
completeness of any of these forward-looking statements. You should
not rely upon forward-looking statements as predictions of future
events. Unless otherwise required by applicable laws, we undertake
no obligation to update or revise any forward-looking statements,
whether because of new information or future developments.
Use of Non-GAAP Information
To provide investors and others with additional information
regarding the financial results of Tronox Holdings plc, we have
disclosed in this release certain non-U.S. GAAP operating
performance measures of EBITDA, Adjusted EBITDA, Adjusted EBITDA
margin and Adjusted net income attributable to Tronox, including
its presentation on a per share basis, and a non-U.S. GAAP
liquidity measure of Free Cash Flow. These non-U.S. GAAP
financial measures are a supplement to and not a substitute for or
superior to, the Company's results presented in accordance with
U.S. GAAP. The non-U.S. GAAP financial measures presented by
the Company may be different from non-U.S. GAAP financial measures
presented by other companies. Specifically, the Company believes
the non-U.S. GAAP information provides useful measures to investors
regarding the Company's financial performance by excluding certain
costs and expenses that the Company believes are not indicative of
its core operating results. The presentation of these
non-U.S. GAAP financial measures is not meant to be considered in
isolation or as a substitute for results or guidance prepared and
presented in accordance with U.S. GAAP. A reconciliation of
the non-U.S. GAAP financial measures to U.S. GAAP results is
included herein.
Media Contact: Melissa Zona
+1.636.751.4057
Investor Contact: Jennifer
Guenther
+1.646.960.6598
TRONOX HOLDINGS PLC
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (U.S.
GAAP)
|
(UNAUDITED)
|
(Millions of U.S. dollars, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net sales
|
$
794
|
|
$ 945
|
|
$ 1,502
|
|
$
1,910
|
Cost of goods
sold
|
637
|
|
682
|
|
1,212
|
|
1,415
|
Gross profit
|
157
|
|
263
|
|
290
|
|
495
|
Selling, general and
administrative expenses
|
73
|
|
73
|
|
144
|
|
151
|
Venator
settlement
|
—
|
|
—
|
|
—
|
|
85
|
Income from operations
|
84
|
|
190
|
|
146
|
|
259
|
Interest
expense
|
(38)
|
|
(28)
|
|
(71)
|
|
(60)
|
Interest
income
|
3
|
|
2
|
|
6
|
|
4
|
Loss on extinguishment
of debt
|
—
|
|
(20)
|
|
—
|
|
(21)
|
Other income,
net
|
4
|
|
8
|
|
6
|
|
4
|
Income before income taxes
|
53
|
|
152
|
|
87
|
|
186
|
Income tax (provision)
benefit
|
(322)
|
|
223
|
|
(331)
|
|
205
|
Net (loss) income
|
(269)
|
|
375
|
|
(244)
|
|
391
|
Net income attributable
to noncontrolling interest
|
—
|
|
—
|
|
2
|
|
—
|
Net (loss) income attributable to Tronox Holdings
plc
|
$
(269)
|
|
$ 375
|
|
$
(246)
|
|
$
391
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Earnings per share:
|
|
|
|
|
|
|
|
Basic
|
$ (1.72)
|
|
$ 2.40
|
|
$
(1.58)
|
|
$
2.52
|
Diluted
|
$ (1.72)
|
|
$ 2.37
|
|
$
(1.58)
|
|
$
2.46
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic (in
thousands)
|
156,780
|
|
155,867
|
|
155,986
|
|
155,252
|
Weighted average shares outstanding, diluted (in
thousands)
|
156,780
|
|
158,448
|
|
155,986
|
|
158,996
|
|
|
|
|
|
|
|
|
Other Operating Data:
|
|
|
|
|
|
|
|
Capital
expenditures
|
55
|
|
99
|
|
148
|
|
202
|
Depreciation, depletion
and amortization expense
|
68
|
|
67
|
|
139
|
|
135
|
|
|
|
|
|
|
|
|
TRONOX HOLDINGS PLC
|
RECONCILIATION OF NON-U.S. GAAP FINANCIAL
MEASURES
|
(UNAUDITED)
|
(Millions of U.S. dollars, except share and per share
data)
|
|
|
|
|
|
|
|
|
RECONCILIATION OF NET (LOSS) INCOME ATTRIBUTABLE TO
TRONOX HOLDINGS PLC (U.S. GAAP)
|
TO ADJUSTED NET INCOME ATTRIBUTABLE TO TRONOX
HOLDINGS PLC (NON-U.S. GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to Tronox Holdings plc (U.S. GAAP)
|
$
(269)
|
|
$
375
|
|
$
(246)
|
|
$
391
|
|
|
|
|
|
|
|
|
Venator settlement
(a)
|
—
|
|
—
|
|
—
|
|
85
|
Loss on extinguishment
of debt (b)
|
—
|
|
20
|
|
—
|
|
21
|
Income tax expense -
deferred tax assets (c)
|
—
|
|
(1)
|
|
—
|
|
(8)
|
Tax valuation
allowance (d)
|
293
|
|
(262)
|
|
293
|
|
(262)
|
Other (e)
|
—
|
|
2
|
|
1
|
|
3
|
Adjusted net income
attributable to Tronox Holdings plc (non-U.S. GAAP)
(1)
|
$
24
|
|
$
134
|
|
$
48
|
|
$
230
|
|
|
|
|
|
|
|
|
Diluted (loss) net
income per share (U.S. GAAP)
|
$
(1.72)
|
|
$
2.37
|
|
$
(1.58)
|
|
$
2.46
|
|
|
|
|
|
|
|
|
Venator settlement,
per share
|
—
|
|
—
|
|
—
|
|
0.53
|
Loss on extinguishment
of debt, per share
|
—
|
|
0.13
|
|
—
|
|
0.13
|
Income tax expense -
deferred tax assets, per share
|
—
|
|
(0.01)
|
|
—
|
|
(0.05)
|
Tax valuation
allowance, per share
|
1.87
|
|
(1.65)
|
|
1.87
|
|
(1.65)
|
Other, per
share
|
—
|
|
0.01
|
|
0.01
|
|
0.02
|
Diluted adjusted net
income per share attributable to Tronox Holdings plc (non-U.S.
GAAP) (2)
|
$
0.16
|
|
$
0.84
|
|
$
0.31
|
|
$
1.44
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding, diluted (in thousands)
|
157,159
|
|
158,448
|
|
157,059
|
|
158,996
|
|
|
|
|
|
|
|
|
(1) No income tax
impacts have been given to any item as they were recorded in
jurisdictions with full valuation allowances.
|
(2) Diluted adjusted
net income per share attributable to Tronox Holdings plc was
calculated from exact, not rounded Adjusted net income attributable
to Tronox Holdings plc and share information.
|
(a) Represents the
breakage fee including interest associated with the Venator
settlement which were recorded in "Venator settlement" in the
Consolidated Statements of Operations.
|
(b) 2022 amount
represents the loss in connection with the redemption of the 6.5%
Senior Secured Notes and the issuance of a new term loan which
closed in April 2022.
|
(c) Represents a charge
to tax expense for the impact on deferred tax assets from a change
in tax rates in a foreign tax jurisdiction.
|
(d) Represents changes
within the Company's Australian deferred tax assets' valuation
allowance.
|
(e) Represents other
activity not representative of the ongoing operations of the
Company.
|
|
|
|
|
|
|
|
|
TRONOX HOLDINGS PLC
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(UNAUDITED)
|
(Millions of U.S. dollars, except share and per share
data)
|
|
|
|
|
|
|
|
|
|
June 30, 2023
|
|
December 31, 2022
|
ASSETS
|
|
|
|
Current Assets
|
|
|
|
Cash and cash
equivalents
|
$
167
|
|
$
164
|
Accounts receivable
(net of allowance for credit losses of $4 million and $4 million
as
of June 30, 2023 and
December 31, 2022, respectively)
|
372
|
|
377
|
Inventories,
net
|
1,400
|
|
1,278
|
Prepaid and other
assets
|
145
|
|
135
|
Income taxes
receivable
|
—
|
|
6
|
Total current assets
|
2,084
|
|
1,960
|
|
|
|
|
Noncurrent Assets
|
|
|
|
Property, plant and
equipment, net
|
1,790
|
|
1,830
|
Mineral leaseholds,
net
|
662
|
|
701
|
Intangible assets,
net
|
246
|
|
250
|
Lease right of use
assets, net
|
136
|
|
136
|
Deferred tax
assets
|
929
|
|
1,233
|
Other long-term
assets
|
208
|
|
196
|
Total assets
|
$
6,055
|
|
$
6,306
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
Current Liabilities
|
|
|
|
Accounts
payable
|
$
437
|
|
$
486
|
Accrued
liabilities
|
244
|
|
252
|
Short-term lease
liabilities
|
23
|
|
20
|
Short-term
debt
|
203
|
|
50
|
Long-term debt due
within one year
|
23
|
|
24
|
Income taxes
payable
|
10
|
|
18
|
Total current liabilities
|
940
|
|
850
|
|
|
|
|
Noncurrent Liabilities
|
|
|
|
Long-term debt,
net
|
2,450
|
|
2,464
|
Pension and
postretirement healthcare benefits
|
91
|
|
89
|
Asset retirement
obligations
|
153
|
|
153
|
Environmental
liabilities
|
49
|
|
51
|
Long-term lease
liabilities
|
108
|
|
110
|
Deferred tax
liabilities
|
142
|
|
153
|
Other long-term
liabilities
|
36
|
|
33
|
Total liabilities
|
3,969
|
|
3,903
|
|
|
|
|
Commitments and Contingencies
|
|
|
|
Shareholders' Equity
|
|
|
|
Tronox Holdings plc
ordinary shares, par value $0.01 — 156,786,791 shares issued
and
outstanding at June 30,
2023 and 154,496,923 shares issued and outstanding at December 31,
2022
|
2
|
|
2
|
Capital in excess of
par value
|
2,054
|
|
2,043
|
Retained
earnings
|
794
|
|
1,080
|
Accumulated other
comprehensive loss
|
(809)
|
|
(768)
|
Total Tronox Holdings plc shareholders'
equity
|
2,041
|
|
2,357
|
Noncontrolling
interest
|
45
|
|
46
|
Total equity
|
2,086
|
|
2,403
|
Total liabilities and equity
|
$
6,055
|
|
$
6,306
|
|
|
|
|
TRONOX HOLDINGS PLC
|
CONSOLIDATED STATEMENTS OF CASH
FLOWS
|
(UNAUDITED)
|
(Millions of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30,
|
|
2023
|
|
2022
|
Cash Flows from Operating
Activities:
|
|
|
|
Net (loss)
income
|
$
(244)
|
|
$
391
|
Adjustments to
reconcile net (loss) income to net cash provided by operating
activities:
|
|
|
|
Depreciation, depletion
and amortization
|
139
|
|
135
|
Deferred income
taxes
|
310
|
|
(240)
|
Share-based
compensation expense
|
11
|
|
14
|
Amortization of
deferred debt issuance costs and discount on debt
|
4
|
|
4
|
Loss on extinguishment
of debt
|
-
|
|
21
|
Other non-cash items
affecting net (loss) income
|
26
|
|
22
|
Changes in assets and
liabilities:
|
|
|
|
Increase in accounts
receivable, net of allowance for credit losses
|
(1)
|
|
(21)
|
Increase in
inventories, net
|
(131)
|
|
(80)
|
Decrease (increase) in
prepaid and other assets
|
9
|
|
(3)
|
(Decrease) increase in
accounts payable and accrued liabilities
|
(43)
|
|
8
|
Net changes in income
tax payables and receivables
|
(4)
|
|
2
|
Changes in other
non-current assets and liabilities
|
(19)
|
|
(32)
|
Cash provided by
operating activities
|
57
|
|
221
|
|
|
|
|
Cash Flows from Investing
Activities:
|
|
|
|
Capital
expenditures
|
(148)
|
|
(202)
|
Proceeds from sale of
assets
|
3
|
|
1
|
Cash used in investing
activities
|
(145)
|
|
(201)
|
|
|
|
|
Cash Flows from Financing
Activities:
|
|
|
|
Repayments of
short-term debt
|
(50)
|
|
(15)
|
Repayments of long-term
debt
|
(9)
|
|
(507)
|
Proceeds from long-term
debt
|
-
|
|
396
|
Proceeds from
short-term debt
|
201
|
|
87
|
Repurchase of common
stock
|
-
|
|
(41)
|
Call premiums
paid
|
-
|
|
(18)
|
Debt issuance
costs
|
-
|
|
(4)
|
Dividends
paid
|
(50)
|
|
(41)
|
Cash provided by (used
in) financing activities
|
92
|
|
(143)
|
|
|
|
|
Effects of exchange rate changes on cash and cash
equivalents
|
(1)
|
|
5
|
|
|
|
|
Net increase (decrease) in cash and cash
equivalents
|
3
|
|
(118)
|
Cash and cash equivalents at beginning of
period
|
164
|
|
232
|
Cash and cash equivalents at end of
period
|
$
167
|
|
$
114
|
|
|
|
|
TRONOX HOLDINGS PLC
|
RECONCILIATION OF NET (LOSS) INCOME TO EBITDA AND
ADJUSTED EBITDA (NON-U.S. GAAP)
|
(UNAUDITED)
|
(Millions of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Net (loss) income (U.S.
GAAP)
|
$
(269)
|
|
$ 375
|
$
|
(244)
|
$
|
391
|
Interest
expense
|
38
|
|
28
|
|
71
|
|
60
|
Interest
income
|
(3)
|
|
(2)
|
|
(6)
|
|
(4)
|
Income tax provision
(benefit)
|
322
|
|
(223)
|
|
331
|
|
(205)
|
Depreciation,
depletion and amortization expense
|
68
|
|
67
|
|
139
|
|
135
|
EBITDA (non-U.S.
GAAP)
|
156
|
|
245
|
|
291
|
|
377
|
Share-based
compensation (a)
|
5
|
|
7
|
|
11
|
|
14
|
Venator settlement
(b)
|
—
|
|
—
|
|
—
|
|
85
|
Loss on extinguishment
of debt (c)
|
—
|
|
20
|
|
—
|
|
21
|
Foreign currency
remeasurement (d)
|
(5)
|
|
(4)
|
|
(6)
|
|
4
|
Other items
(e)
|
12
|
|
7
|
|
18
|
|
14
|
Adjusted EBITDA
(non-U.S. GAAP)
|
$
168
|
|
$ 275
|
|
$
314
|
|
$
515
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Represents non-cash
share-based compensation.
|
(b) Represents breakage
fee including interest associated with the Venator settlement which
were recorded in "Venator settlement" in the unaudited Condensed
Consolidated Statements of Operations.
|
(c) 2022 amount
represents the loss in connection with the redemption of the 6.5%
Senior Secured Notes and the issuance of a new term loan which
closed in April 2022.
|
(d) Represents realized
and unrealized gains and losses associated with foreign currency
remeasurement related to third-party and intercompany receivables
and liabilities denominated in a currency other than the functional
currency of the entity holding them, which are included in "Other
income, net" in the unaudited Condensed Consolidated Statements of
Operations.
|
(e) Includes noncash
pension and postretirement costs, asset retirement obligation
remeasurements, asset write-offs, accretion expense and other items
included in "Selling general and administrative expenses", "Cost of
goods sold" and "Other income, net" in the unaudited Condensed
Consolidated Statements of Operations.
|
|
|
|
|
|
|
|
|
TRONOX HOLDINGS PLC
|
FREE CASH FLOW (NON-U.S. GAAP)
|
(UNAUDITED)
|
(Millions of U.S. dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
reconciles cash used in operating activities to free cash flow for
the three and six months ended June 30, 2023:
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2023
|
|
Three Months Ended
March 31, 2023
|
|
Three Months Ended
June 30, 2023
|
Cash provided by
operating activities
|
|
$
57
|
|
$
(79)
|
|
$
136
|
Capital
expenditures
|
|
(148)
|
|
(93)
|
|
(55)
|
Free
cash flow (non-U.S. GAAP)
|
|
$
(91)
|
|
$
(172)
|
|
$
81
|
|
|
|
|
|
|
|
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SOURCE Tronox Holdings plc