| • |
Revenue of $578 million
|
| • |
| • |
Adjusted EBITDA of $142 million; Adjusted EBITDA margin of 25 percent (Non-GAAP)
|
| • |
Total Cristal acquisition synergies year-to-date of $107 million, with $84 million reflected in Adjusted EBITDA (Non-GAAP) and $23 million in taxes and other synergies; maintaining FY2020 total
synergy target of $190 million, $140 million within EBITDA
|
| • |
GAAP diluted loss per share of $0.03; Adjusted diluted EPS of $0.03 (Non-GAAP)
|
| • |
Due to the impacts of COVID-19, TiO2 sales volumes declined 19 percent, consistent with previously issued Q2 outlook, and selling prices were level sequentially
|
| • |
Zircon sales volumes increased 2 percent sequentially as a result of shipment timing, and selling prices increased 2 percent driven by favorable product mix
|
| • |
Feedstock and other products sales decreased 43 percent sequentially, primarily due to the lack of mandated shipments of CP slag in the quarter and lower sales volumes of pig iron
|
| • |
Over $1.1 billion of available liquidity including $722 million in cash and cash equivalents, excluding restricted cash of $27 million that includes $18 million held in escrow related to the TTI
acquisition
|
| • |
$56 million in Free Cash Flow for the second quarter driven by reductions in working capital
|
| • |
Debt was $3.5 billion and debt, net of cash and cash equivalents was $2.8 billion
|
| • |
No maturities on our term loan or notes until 2024
|
| • |
Signed a definitive agreement to acquire the TiZir Titanium and Iron (“TTI”) business from Eramet S.A. for approximately $300 million or a synergy-adjusted multiple of ~5.2x FY 2019 Adjusted EBITDA
|
| ‒ |
Expected to achieve $15-20 million in run-rate synergies by year three
|
| ‒ |
Remains subject to certain customary closing conditions including regulatory approvals
|
| • |
Entered into an amended Jazan Technical Services Agreement (“TSA”) under which Tronox will provide more comprehensive consulting and advisory services on the project
|
|
(Millions of dollars)
|
Q2 2020
|
Q2 2019
|
Y-o-Y % ∆
|
|
Q1 2020
|
Q-o-Q % ∆
|
|
|||||||||||||
|
Revenue
|
$
|
578
|
$
|
791
|
(27
|
%)
|
$
|
722
|
(20
|
%)
|
||||||||||
|
TiO2
|
466
|
625
|
(25
|
%)
|
580
|
(20
|
%)
|
|||||||||||||
|
Zircon
|
68
|
88
|
(23
|
%)
|
65
|
5
|
%
|
|||||||||||||
|
Feedstock and other products
|
44
|
78
|
(44
|
%)
|
77
|
(43
|
%)
|
|||||||||||||
|
Net Income (Loss) from Continuing Ops
|
$
|
(4
|
)
|
$
|
(55
|
)
|
n/
|
m
|
$
|
40
|
n/
|
m
|
||||||||
|
Adjusted EBITDA
|
$
|
142
|
$
|
195
|
(27
|
%)
|
$
|
174
|
(18
|
%)
|
||||||||||
|
Adjusted EBITDA Margin %
|
25
|
%
|
25
|
%
|
-
|
24
|
%
|
1 pt
|
||||||||||||
|
Y-o-Y % ∆
|
Q-o-Q % ∆
|
|||||||||||||||||||
|
Volume
|
Price
|
Volume
|
Price
|
|||||||||||||||||
|
TiO2
|
(23
|
%)
|
(3
|
%)
|
(19
|
%)
|
0
|
%
|
||||||||||||
|
Local Currency Basis
|
-
|
(2
|
%)
|
-
|
0
|
%
|
||||||||||||||
|
Zircon
|
(11
|
%)
|
(13
|
%)
|
2
|
%
|
2
|
%
|
||||||||||||
|
(Millions of dollars)
|
Q2 2020
|
Q2 2019
|
Y-o-Y % ∆
|
|
Q1 2020
|
Q-o-Q % ∆
|
|
|||||||||||||
|
Revenue
|
$
|
578
|
$
|
827
|
(30
|
%)
|
$
|
722
|
(20
|
%)
|
||||||||||
|
TiO2
|
466
|
657
|
(29
|
%)
|
580
|
(20
|
%)
|
|||||||||||||
|
Zircon
|
68
|
89
|
(24
|
%)
|
65
|
5
|
%
|
|||||||||||||
|
Feedstock and other products
|
44
|
81
|
(46
|
%)
|
77
|
(43
|
%)
|
|||||||||||||
|
Net Income (Loss) from Continuing Ops
|
$
|
(4
|
)
|
$
|
32
|
n/
|
m
|
$
|
40
|
n/
|
m
|
|||||||||
|
Adjusted EBITDA
|
$
|
142
|
$
|
200
|
(29
|
%)
|
$
|
174
|
(18
|
%)
|
||||||||||
|
Adjusted EBITDA Margin %
|
25
|
%
|
24
|
%
|
1 pt
|
24
|
%
|
1 pt
|
||||||||||||
| Y-o-Y % ∆ | Q-o-Q % ∆ | |||||||||||||||||||
|
Volume
|
Price
|
Volume
|
Price
|
|||||||||||||||||
|
TiO2
|
(27
|
%)
|
(3
|
%)
|
(19
|
%)
|
0
|
%
|
||||||||||||
|
Local Currency Basis
|
-
|
(2
|
%)
|
-
|
0
|
%
|
||||||||||||||
|
Zircon
|
(12
|
%)
|
(13
|
%)
|
2
|
%
|
2
|
%
|
||||||||||||
| • |
Revenue of $578 million decreased 27 percent compared to $791 million
|
| • |
TiO2 sales of $466 million, including revenue from the acquired Cristal operations, decreased 25 percent compared to $625 million
|
| • |
Zircon sales of $68 million, including revenue from the acquired Cristal operations, decreased 23 percent from $88 million
|
| • |
Feedstock and other products sales of $44 million, including revenue from the acquired Cristal operations, decreased 44 percent from $78 million
|
| • |
Adjusted EBITDA of $142 million decreased 27 percent compared to $195 million
|
| • |
Selling, general and administrative (“SG&A”) expenses were $80 million compared to $103 million
|
| • |
Interest expense of $47 million decreased from $54 million in the year-ago quarter
|
| • |
Revenue of $578 million decreased 30 percent compared to $827 million in the year-ago quarter, driven by impacts to sales volumes due to COVID-19
|
| • |
TiO2 sales of $466 million were 29 percent lower compared to $657 million; sales volumes decreased 27 percent; selling prices were 2 percent lower on a local currency basis and 3 percent
lower on a U.S. dollar basis
|
| • |
Zircon sales of $68 million were 24 percent lower than $89 million in the year-ago quarter; sales volumes were 12 percent lower and selling prices were 13 percent lower
|
| • |
| • |
Adjusted EBITDA of $142 million was 29 percent lower than $200 million in the year-ago quarter, driven primarily by lower sales volumes due to COVID-19, absence of deferred margin benefit, increased
costs, and one-time costs related to our South African mining and beneficiation operations during the countrywide lockdown; this was partially offset by synergies, favorable foreign exchange rates, and improved ore grades at our Australian
mine sites
|
| • |
SG&A expenses were $80 million compared to $85 million
|
| • |
Interest expense of $47 million decreased from $54 million in the year-ago quarter
|
| • |
| • |
TiO2 sales of $466 million were 20 percent lower than $580 million; sales volumes decreased 19 percent – driven by impacts from regional lockdowns due to COVID-19 – and selling prices were
level sequentially
|
| • |
Zircon sales of $68 million increased 5 percent from $65 million, driven by a 2 percent increase in sales volumes that was a result of a benefit from shipment timing and a 2 percent increase in
selling prices due to favorable product mix
|
| • |
Feedstock and other products sales of $44 million decreased 43 percent compared to $77 million, due to a lack of mandated shipments of CP slag, lower sales volumes of pig iron, and an opportunistic
sale of excess ilmenite in Q1 that did not repeat in Q2
|
| • |
Adjusted EBITDA of $142 million decreased 18 percent compared to $174 million, driven primarily by lower TiO2 sales volumes due to COVID-19, lower feedstock and other product volumes,
increased costs, and one-time costs related to our South African mining and beneficiation operations during the countrywide lockdown; this was partially offset by synergies, favorable foreign exchange rates, and improved ore grades at our
Australian mine sites
|
| • |
SG&A expenses were $80 million compared to $94 million, due to cost reductions
|
| • |
Interest expense of $47 million increased from $45 million in the previous quarter, due to new debt issuance
|
| • |
As of June 30, 2020, debt was $3.5 billion and debt, net of cash and cash equivalents was $2.8 billion
|
| • |
Liquidity was over $1.1 billion as of June 30, 2020, comprised of cash and cash equivalents of $722 million and $401 million available under revolving credit agreements
|
| • |
Restricted cash of $27 million includes $18 million held in escrow related to the TTI acquisition
|
| • |
In the second quarter 2020, capital expenditures were $44 million and depreciation, depletion and amortization expense was $72 million
|
| • |
Free Cash Flow for the quarter was $56 million, primarily due to working capital improvements
|
| • |
Jefferies Virtual Industrials Conference, August 5, 2020
|
| • |
Credit Suisse 33rd Annual Virtual Basic Materials Conference, September 16 – 17, 2020
|
| • |
Reflect the ongoing business of Tronox Holdings plc in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business, as they exclude income and expense that
are not reflective of ongoing operating results;
|
| • |
Provide useful information to investors and others in understanding and evaluating the operating results and future prospects of Tronox Holdings plc;
|
| • |
Provide an additional view of the operating performance of the Company by adding interest expense & income, income taxes, depreciation, depletion and amortization to the net income. Further
adjustments due to gain (loss) on extinguishment of debt, stock-based compensation charges, transaction costs associated with acquisitions, integration costs, purchase accounting adjustments, foreign currency re-measurements, impairments,
settlements of pension and postretirement plans, impacts of tax settlements on non-income related taxes, severance expense, and noncash pension and postretirement expense and accretion expense are made to exclude items that are either
non-cash or unusual in nature;
|
| • |
Adjusted EBITDA is one of the primary measures management uses for planning and budgeting processes and to monitor and evaluate financial and operating results. Adjusted EBITDA is not a recognized
term under U.S. GAAP and does not purport to be an alternative to measures of our financial performance as determined in accordance with U.S. GAAP, such as net income (loss). Because other companies may calculate EBITDA and Adjusted EBITDA
differently than Tronox, EBITDA may not be, and Adjusted EBITDA as presented in this release is not, comparable to similarly titled measures reported by other companies; and
|
| • |
We believe that the non-U.S. GAAP financial measure “Adjusted net income (loss) attributable to Tronox Holdings plc” and its presentation on a per share basis provide useful information about our
operating results to investors and securities analysts. We also believe that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of our underlying
businesses from period to period.
|
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net sales
|
$
|
578
|
$
|
791
|
$
|
1,300
|
$
|
1,181
|
||||||||
|
Cost of goods sold
|
449
|
672
|
996
|
979
|
||||||||||||
|
Contract loss
|
-
|
19
|
-
|
19
|
||||||||||||
|
Gross profit
|
129
|
100
|
304
|
183
|
||||||||||||
|
Selling, general and administrative expenses
|
80
|
103
|
174
|
170
|
||||||||||||
|
Restructuring
|
-
|
10
|
2
|
10
|
||||||||||||
|
Income (loss) from operations
|
49
|
(13
|
)
|
128
|
3
|
|||||||||||
|
Interest expense
|
(47
|
)
|
(54
|
)
|
(92
|
)
|
(103
|
)
|
||||||||
|
Interest income
|
2
|
3
|
5
|
12
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||
|
Other income, net
|
2
|
5
|
11
|
3
|
||||||||||||
|
Income (loss) from continuing operations before income taxes
|
6
|
(59
|
)
|
52
|
(87
|
)
|
||||||||||
|
Income tax (provision) benefit
|
(10
|
)
|
4
|
(16
|
)
|
2
|
||||||||||
|
Net (loss) income from continuing operations
|
(4
|
)
|
(55
|
)
|
36
|
(85
|
)
|
|||||||||
|
Net loss from discontinued operations, net of tax
|
-
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||
|
Net (loss) income
|
(4
|
)
|
(56
|
)
|
36
|
(86
|
)
|
|||||||||
|
Net income attributable to noncontrolling interest
|
-
|
6
|
8
|
10
|
||||||||||||
|
Net (loss) income attributable to Tronox Holdings plc
|
$
|
(4
|
)
|
$
|
(62
|
)
|
$
|
28
|
$
|
(96
|
)
|
|||||
|
Net (loss) income per share, basic:
|
||||||||||||||||
|
Continuing operations
|
$
|
(0.03
|
)
|
$
|
(0.41
|
)
|
$
|
0.19
|
$
|
(0.69
|
)
|
|||||
|
Discontinued operations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
|
Net (loss) income per share, basic
|
$
|
(0.03
|
)
|
$
|
(0.41
|
)
|
$
|
0.19
|
$
|
(0.69
|
)
|
|||||
|
Net (loss) income per share, diluted:
|
||||||||||||||||
|
Continuing operations
|
$
|
(0.03
|
)
|
$
|
(0.41
|
)
|
$
|
0.19
|
$
|
(0.69
|
)
|
|||||
|
Discontinued operations
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
|
Net (loss) income per share, diluted
|
$
|
(0.03
|
)
|
$
|
(0.41
|
)
|
$
|
0.19
|
$
|
(0.69
|
)
|
|||||
|
Weighted average shares outstanding, basic (in thousands)
|
143,465
|
150,686
|
143,080
|
137,569
|
||||||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
143,465
|
150,686
|
143,644
|
137,569
|
||||||||||||
|
Other Operating Data:
|
||||||||||||||||
|
Capital expenditures
|
44
|
56
|
82
|
81
|
||||||||||||
|
Depreciation, depletion and amortization expense
|
72
|
84
|
143
|
131
|
||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net (loss) income attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
(62
|
)
|
$
|
28
|
$
|
(96
|
)
|
|||||
|
Net income from discontinued operations, net of tax (U.S. GAAP)
|
-
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||
|
Net (loss) income from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
(61
|
)
|
$
|
28
|
$
|
(95
|
)
|
|||||
|
Inventory step-up (a)
|
-
|
50
|
-
|
50
|
||||||||||||
|
Contract loss (b)
|
-
|
14
|
-
|
14
|
||||||||||||
|
Transaction costs (c)
|
4
|
21
|
4
|
29
|
||||||||||||
|
Restructuring (d)
|
-
|
10
|
2
|
10
|
||||||||||||
|
Integration costs (e)
|
3
|
4
|
10
|
4
|
||||||||||||
|
Loss on extinguishment of debt (f)
|
-
|
-
|
-
|
2
|
||||||||||||
|
Tax valuation allowance (g)
|
2
|
-
|
2
|
-
|
||||||||||||
|
Charge for capital gains tax payment to Exxaro (h)
|
-
|
1
|
-
|
2
|
||||||||||||
|
Adjusted net income from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
|
$
|
5
|
$
|
39
|
$
|
46
|
$
|
16
|
||||||||
|
Diluted net (loss) income per share from continuing operations (U.S. GAAP)
|
$
|
(0.03
|
)
|
$
|
(0.41
|
)
|
$
|
0.19
|
$
|
(0.69
|
)
|
|||||
|
Inventory step-up, per share
|
-
|
0.33
|
-
|
0.36
|
||||||||||||
|
Contract loss, per share
|
-
|
0.09
|
-
|
0.10
|
||||||||||||
|
Transaction costs, per share
|
0.03
|
0.14
|
0.03
|
0.21
|
||||||||||||
|
Restructuring, per share
|
-
|
0.07
|
0.01
|
0.07
|
||||||||||||
|
Integration costs, per share
|
0.02
|
0.03
|
0.07
|
0.03
|
||||||||||||
|
Loss on extinguishment of debt, per share
|
-
|
-
|
-
|
0.02
|
||||||||||||
|
Tax valuation allowance, per share
|
0.01
|
-
|
0.01
|
-
|
||||||||||||
|
Charge for capital gains tax payment to Exxaro, per share
|
-
|
0.01
|
-
|
0.02
|
||||||||||||
|
Diluted adjusted net income per share from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.03
|
$
|
0.26
|
$
|
0.31
|
$
|
0.12
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
143,754
|
151,538
|
143,644
|
138,915
|
||||||||||||
|
June 30, 2020
|
December 31, 2019
|
|||||||
|
ASSETS
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
722
|
$
|
302
|
||||
|
Restricted cash
|
27
|
9
|
||||||
|
Accounts receivable (net of allowance for credit losses of $4 million and $5 million as of June 30, 2020 and December 31, 2019, respectively)
|
439
|
482
|
||||||
|
Inventories, net
|
1,174
|
1,131
|
||||||
|
Prepaid and other assets
|
135
|
143
|
||||||
|
Income taxes receivable
|
10
|
6
|
||||||
|
Total current assets
|
2,507
|
2,073
|
||||||
|
Noncurrent Assets
|
||||||||
|
Property, plant and equipment, net
|
1,642
|
1,762
|
||||||
|
Mineral leaseholds, net
|
778
|
852
|
||||||
|
Intangible assets, net
|
195
|
208
|
||||||
|
Lease right of use assets, net
|
86
|
101
|
||||||
|
Deferred tax assets
|
103
|
110
|
||||||
|
Other long-term assets
|
171
|
162
|
||||||
|
Total assets
|
$
|
5,482
|
$
|
5,268
|
||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$
|
322
|
$
|
342
|
||||
|
Accrued liabilities
|
305
|
283
|
||||||
|
Short-term lease liabilities
|
37
|
38
|
||||||
|
Short-term debt
|
13
|
-
|
||||||
|
Long-term debt due within one year
|
46
|
38
|
||||||
|
Income taxes payable
|
4
|
1
|
||||||
|
Total current liabilities
|
727
|
702
|
||||||
|
Noncurrent Liabilities
|
||||||||
|
Long-term debt, net
|
3,427
|
2,988
|
||||||
|
Pension and postretirement healthcare benefits
|
151
|
160
|
||||||
|
Asset retirement obligations
|
145
|
142
|
||||||
|
Environmental liabilities
|
70
|
65
|
||||||
|
Long-term lease liabilities
|
48
|
62
|
||||||
|
Deferred tax liabilities
|
145
|
184
|
||||||
|
Other long-term liabilities
|
41
|
49
|
||||||
|
Total liabilities
|
4,754
|
4,352
|
||||||
|
Commitments and Contingencies
|
-
|
-
|
||||||
|
Shareholders’ Equity
|
||||||||
|
Tronox Holdings plc ordinary shares, par value $0.01 — 143,523,476 shares issued and outstanding at June 30, 2020 and 141,900,459 shares issued and
outstanding at December 31, 2019
|
1
|
1
|
||||||
|
Capital in excess of par value
|
1,854
|
1,846
|
||||||
|
Accumulated deficit
|
(485
|
)
|
(493
|
)
|
||||
|
Accumulated other comprehensive loss
|
(768
|
)
|
(606
|
)
|
||||
|
Total Tronox Holdings plc shareholders’ equity
|
602
|
748
|
||||||
|
Noncontrolling interest
|
126
|
168
|
||||||
|
Total equity
|
728
|
916
|
||||||
|
Total liabilities and equity
|
$
|
5,482
|
$
|
5,268
|
||||
|
Six Months Ended June 30,
|
||||||||
|
2020
|
2019
|
|||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net income (loss)
|
$
|
36
|
$
|
(86
|
)
|
|||
|
Net income from discontinued operations, net of tax
|
-
|
$
|
(1
|
)
|
||||
|
Net income (loss) from continuing operations
|
$
|
36
|
$
|
(85
|
)
|
|||
|
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities, continuing operations:
|
||||||||
|
Depreciation, depletion and amortization
|
143
|
131
|
||||||
|
Deferred income taxes
|
6
|
(13
|
)
|
|||||
|
Share-based compensation expense
|
11
|
15
|
||||||
|
Amortization of deferred debt issuance costs and discount on debt
|
5
|
4
|
||||||
|
Loss on extinguishment of debt
|
-
|
2
|
||||||
|
Contract loss
|
-
|
19
|
||||||
|
Acquired inventory step-up recognized in earnings
|
-
|
55
|
||||||
|
Other non-cash items affecting net (loss) income from continuing operations
|
31
|
17
|
||||||
|
Changes in assets and liabilities:
|
||||||||
|
(Increase) decrease in accounts receivable, net of allowance for credit losses
|
25
|
(43
|
)
|
|||||
|
(Increase) decrease in inventories, net
|
(117
|
)
|
31
|
|||||
|
Increase in prepaid and other assets
|
(18
|
)
|
(8
|
)
|
||||
|
(Decrease) increase in accounts payable and accrued liabilities
|
(16
|
)
|
32
|
|||||
|
Net changes in income tax payables and receivables
|
(3
|
)
|
(8
|
)
|
||||
|
Changes in other non-current assets and liabilities
|
(31
|
)
|
(16
|
)
|
||||
|
Cash provided by operating activities - continuing operations
|
72
|
133
|
||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(82
|
)
|
(81
|
)
|
||||
|
Cristal Acquisition
|
-
|
(1,603
|
)
|
|||||
|
Proceeds from sale of Ashtabula
|
-
|
707
|
||||||
|
Insurance proceeds
|
1
|
10
|
||||||
|
Loans
|
(12
|
)
|
(25
|
)
|
||||
|
Proceeds from sale of assets
|
1
|
1
|
||||||
|
Cash used in investing activities - continuing operations
|
(92
|
)
|
(991
|
)
|
||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Repayments of long-term debt
|
(15
|
)
|
(215
|
)
|
||||
|
Proceeds from long-term debt
|
500
|
222
|
||||||
|
Proceeds from short-term debt
|
13
|
-
|
||||||
|
Repurchase of common stock
|
-
|
(252
|
)
|
|||||
|
Acquisition of noncontrolling interest
|
-
|
(148
|
)
|
|||||
|
Call premium paid
|
-
|
-
|
||||||
|
Debt issuance costs
|
(9
|
)
|
(4
|
)
|
||||
|
Proceeds from the exercise of options and warrants
|
-
|
-
|
||||||
|
Dividends paid
|
(20
|
)
|
(14
|
)
|
||||
|
Restricted stock and performance-based shares settled in cash for withholding taxes
|
(3
|
)
|
(6
|
)
|
||||
|
Cash provided by (used in) financing activities - continuing operations
|
466
|
(417
|
)
|
|||||
|
Discontinued Operations:
|
||||||||
|
Cash used in operating activities
|
-
|
(15
|
)
|
|||||
|
Cash used in investing activities
|
-
|
(1
|
)
|
|||||
|
Net cash flows used by discontinued operations
|
-
|
(16
|
)
|
|||||
|
Effects of exchange rate changes on cash and cash equivalents and restricted cash
|
(8
|
)
|
1
|
|||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
438
|
(1,290
|
)
|
|||||
|
Cash, cash equivalents and restricted cash at beginning of period
|
311
|
1,696
|
||||||
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
749
|
$
|
406
|
||||
|
Three Months Ended
June 30,
|
Six Months Ended
June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net (loss) income (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
(56
|
)
|
$
|
36
|
$
|
(86
|
)
|
|||||
|
Income from discontinued operations, net of tax (U.S. GAAP)
|
-
|
(1
|
)
|
-
|
(1
|
)
|
||||||||||
|
Net (loss) income from continuing operations (U.S. GAAP)
|
(4
|
)
|
(55
|
)
|
36
|
(85
|
)
|
|||||||||
|
Interest expense
|
47
|
54
|
92
|
103
|
||||||||||||
|
Interest income
|
(2
|
)
|
(3
|
)
|
(5
|
)
|
(12
|
)
|
||||||||
|
Income tax provision (benefit)
|
10
|
(4
|
)
|
16
|
(2
|
)
|
||||||||||
|
Depreciation, depletion and amortization expense
|
72
|
84
|
143
|
131
|
||||||||||||
|
EBITDA (non-U.S. GAAP)
|
123
|
76
|
282
|
135
|
||||||||||||
|
Inventory step-up (a)
|
-
|
55
|
-
|
55
|
||||||||||||
|
Contract loss (b)
|
-
|
19
|
-
|
19
|
||||||||||||
|
Share-based compensation (c)
|
2
|
7
|
11
|
15
|
||||||||||||
|
Transaction costs (d)
|
4
|
21
|
4
|
29
|
||||||||||||
|
Restructuring (e)
|
-
|
10
|
2
|
10
|
||||||||||||
|
Integration costs (f)
|
3
|
4
|
10
|
4
|
||||||||||||
|
Loss on extinguishment of debt (g)
|
-
|
-
|
-
|
2
|
||||||||||||
|
Foreign currency remeasurement (h)
|
2
|
(3
|
)
|
(8
|
)
|
(4
|
)
|
|||||||||
|
Charge for capital gains tax payment to Exxaro (i)
|
-
|
1
|
-
|
2
|
||||||||||||
|
Other items (j)
|
8
|
5
|
14
|
8
|
||||||||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
142
|
$
|
195
|
$
|
315
|
$
|
275
|
||||||||
|
Consolidated
|
||||
|
Cash provided by operating activities - continuing operations
|
$
|
72
|
||
|
Capital expenditures
|
(82
|
)
|
||
|
Free cash flow (non-U.S. GAAP)
|
$
|
(10
|
)
|
|
|
Proforma amounts
|
Proforma amounts
|
|||||||||||||||
|
June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net sales
|
$
|
578
|
$
|
827
|
$
|
1,300
|
$
|
1,547
|
||||||||
|
Cost of goods sold
|
449
|
648
|
996
|
1,227
|
||||||||||||
|
Gross profit
|
129
|
179
|
304
|
320
|
||||||||||||
|
Selling, general and administrative expenses
|
80
|
85
|
174
|
180
|
||||||||||||
|
Restructuring
|
-
|
10
|
2
|
10
|
||||||||||||
|
Income from operations
|
49
|
84
|
128
|
130
|
||||||||||||
|
Interest expense
|
(47
|
)
|
(54
|
)
|
(92
|
)
|
(109
|
)
|
||||||||
|
Interest income
|
2
|
3
|
5
|
6
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||
|
Other expense, net
|
2
|
5
|
11
|
2
|
||||||||||||
|
Income from continuing operations before income taxes
|
6
|
38
|
52
|
27
|
||||||||||||
|
Income tax (provision) benefit
|
(10
|
)
|
(6
|
)
|
(16
|
)
|
(13
|
)
|
||||||||
|
Net (loss) income from continuing operations
|
(4
|
)
|
32
|
36
|
14
|
|||||||||||
|
Net income attributable to noncontrolling interest
|
-
|
6
|
8
|
11
|
||||||||||||
|
Net (loss) income from continuing operations attributable to Tronox Holdings plc
|
$
|
(4
|
)
|
$
|
26
|
$
|
28
|
$
|
3
|
|||||||
|
Net (loss) income from continuing operations per share, diluted
|
$
|
(0.03
|
)
|
$
|
0.17
|
$
|
0.19
|
$
|
0.02
|
|||||||
|
|
||||||||||||||||
|
|
||||||||||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
143,465
|
155,254
|
143,644
|
159,470
|
||||||||||||
|
Proforma amounts
|
Proforma amounts
|
|||||||||||||||
|
Three Months Ended June 30,
|
Six Months Ended June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net (loss) income from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
26
|
$
|
28
|
$
|
3
|
|||||||
|
Transaction costs
|
4
|
-
|
4
|
-
|
||||||||||||
|
Restructuring
|
-
|
10
|
2
|
10
|
||||||||||||
|
Integration costs
|
3
|
4
|
10
|
4
|
||||||||||||
|
Separation costs related to divested business
|
-
|
-
|
-
|
-
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
2
|
||||||||||||
|
Tax valuation allowance
|
2
|
-
|
2
|
-
|
||||||||||||
|
Charge for capital gains tax payment to Exxaro
|
-
|
1
|
-
|
2
|
||||||||||||
|
Adjusted net income attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
5
|
$
|
41
|
$
|
46
|
$
|
21
|
||||||||
|
Diluted net (loss) income per share from continuing operations (U.S. GAAP)
|
$
|
(0.03
|
)
|
$
|
0.17
|
$
|
0.19
|
$
|
0.02
|
|||||||
|
Transaction costs, per share
|
0.03
|
-
|
0.03
|
-
|
||||||||||||
|
Restructuring, per share
|
-
|
0.06
|
0.01
|
0.06
|
||||||||||||
|
Integration costs, per share
|
0.02
|
0.03
|
0.07
|
0.03
|
||||||||||||
|
Loss on extinguishment of debt, per share
|
-
|
-
|
-
|
0.01
|
||||||||||||
|
Tax valuation allowance, per share
|
0.01
|
-
|
0.01
|
-
|
||||||||||||
|
Charge for capital gains tax payment to Exxaro, per share
|
-
|
0.01
|
-
|
0.01
|
||||||||||||
|
Diluted adjusted net income per share attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.03
|
$
|
0.27
|
$
|
0.31
|
$
|
0.13
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
143,754
|
155,254
|
143,644
|
159,470
|
||||||||||||
|
Pro Forma
Three Months Ended June 30,
|
Pro Forma
Six Months Ended
June 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net (loss) income from continuing operations (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
32
|
$
|
36
|
$
|
14
|
|||||||
|
Interest expense
|
47
|
54
|
92
|
109
|
||||||||||||
|
Interest income
|
(2
|
)
|
(3
|
)
|
(5
|
)
|
(6
|
)
|
||||||||
|
Income tax provision
|
10
|
6
|
16
|
13
|
||||||||||||
|
Depreciation, depletion and amortization expense
|
72
|
87
|
143
|
174
|
||||||||||||
|
EBITDA (non-U.S. GAAP)
|
123
|
176
|
282
|
304
|
||||||||||||
|
Share-based compensation
|
2
|
7
|
11
|
15
|
||||||||||||
|
Transaction costs
|
4
|
-
|
4
|
-
|
||||||||||||
|
Restructuring
|
-
|
10
|
2
|
10
|
||||||||||||
|
Integration costs
|
3
|
4
|
10
|
4
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
2
|
||||||||||||
|
Foreign currency remeasurement
|
2
|
(3
|
)
|
(8
|
)
|
(4
|
)
|
|||||||||
|
Charge for capital gains tax payment to Exxaro
|
-
|
1
|
-
|
2
|
||||||||||||
|
Other items
|
8
|
5
|
14
|
8
|
||||||||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
142
|
$
|
200
|
$
|
315
|
$
|
341
|
||||||||