WILMINGTON, Del., Nov. 2, 2017 /PRNewswire/ --
Third Quarter 2017 Highlights
- Net Sales of $1.6 billion, up
13%
- Net Income of $207 million, up
$3 million with EPS of $1.08 per diluted share, down $0.03 per diluted share
- Adjusted EBITDA of $381 million,
up 42%
- Adjusted Net Income of $214
million, up $102 million with
Adjusted EPS of $1.12 per diluted
share, up $0.51 per diluted
share
- Full-year outlook reaffirmed
The Chemours Company (Chemours) (NYSE: CC), a global chemistry
company with leading market positions in titanium technologies,
fluoroproducts and chemical solutions, today announced financial
results for the third quarter 2017.
Chemours President and CEO Mark
Vergnano said: "We continue to benefit from the strength of
our high-value portfolio. Our performance in Titanium Technologies
reflects our ability to provide high-quality Ti-Pure™ titanium
dioxide to meet our customers' needs. In Fluoroproducts, we saw
another quarter of increased Opteon™ refrigerant sales and solid
demand for our fluoropolymers products. Combined with
increased profitability in Chemical Solutions, we delivered
substantial year-over-year improvements across all key financial
metrics."
Third quarter net sales were $1.6
billion, a 13 percent increase from $1.4 billion in the prior-year quarter. Volume
growth in all three segments drove a 6 percent increase in revenue
while higher prices, primarily for Ti-Pure™ titanium dioxide, added
another 9 percent to revenue. Favorable currency in the quarter
resulted in a 1 percent revenue increase. These results were offset
by a 3 percent decline due to the portfolio effects of divestitures
and site closure within Chemical Solutions. Third quarter net
income of $207 million increased 1
percent in comparison to last year's third quarter, which included
a gain of $169 million from the sale
of businesses in the Chemical Solutions segment. Diluted earnings
per share for the third quarter of 2017 was $1.08, compared to $1.11 per diluted share in last year's third
quarter. Adjusted EBITDA for the third quarter 2017 was
$381 million, a 42 percent increase
compared to $268 million in the third
quarter of 2016. This improvement was primarily driven by increased
volume and pricing, which were partially reduced by higher variable
distribution and environmental costs.
Titanium Technologies
In the third quarter, Titanium Technologies segment sales were
$799 million, a 28 percent increase
versus the prior-year quarter, driven by higher global average
selling prices and demand for Ti-Pure™ titanium dioxide. Segment
Adjusted EBITDA was $249 million, a
73 percent year-over-year improvement. Higher Ti-Pure™ titanium
dioxide pricing and volumes were somewhat offset by increased raw
material and distribution costs.
Fluoroproducts
Fluoroproducts segment sales in the third quarter were
$637 million, an increase of 8
percent versus the prior-year quarter. Further adoption of Opteon™
refrigerants and increased demand for fluoropolymers drove the
volume increase compared to last year's third quarter. Higher
average prices of base refrigerants were partially offset by
moderate contractual decline in automotive pricing for Opteon™,
while fluoropolymers pricing was flat versus the prior-year
quarter. Segment Adjusted EBITDA was $158
million, up 10 percent versus the prior-year quarter. This
improvement reflected higher price and volume partially offset by
the combined impact of increased raw materials, expenses related to
capital projects, and Hurricane Harvey, as well as timing of other
expenses.
Chemical Solutions
Chemical Solutions segment sales in the third quarter 2017 were
$148 million, a 19 percent decline
versus the prior-year quarter, reflecting the impact of portfolio
changes in 2016. Strong demand for mining solutions products was
offset by a reduction of sales associated with divestitures and
site closure in 2016, while price and currency variances were
negligible. Segment Adjusted EBITDA was $18
million compared to $9 million
in the prior-year quarter with the increase primarily related to
higher volume of retained businesses and lower fixed costs.
Corporate and Other
Corporate and Other represented a negative $44 million of Adjusted EBITDA, $16 million higher than last year's third
quarter. This increase was primarily driven by increased
environmental accruals including those related to the former DuPont
USS Lead site.
During the third quarter 2017, the company realized a cash tax
rate of approximately 9 percent. The company expects its cash tax
rate to be in the low teens for the full-year 2017, reflecting the
company's anticipated geographic mix of earnings.
Liquidity
As of September 30, 2017, gross
consolidated debt was approximately $4.1
billion. Debt, net of $1.5
billion cash, was approximately $2.6
billion, resulting in a net debt-to-EBITDA ratio of
approximately 2.0 times on a trailing twelve-month basis.
Cash provided by operating activities for the third quarter of
2017 was $112 million, reflecting the
$320 million PFOA MDL settlement
payment, versus $198 million in the
third quarter of 2016. Year-to-date, cash provided by operating
activities was $336 million, versus
$324 million in the first nine months
of 2016, which included a $93 million
benefit of the prepayment received from DuPont.
Excluding the PFOA payment, Free Cash Flow in the third quarter
of 2017 was $324 million versus the
previous-year quarter of $131
million. The improvement in Free Cash Flow was due to higher
operating earnings and improved working capital performance of
$140 million. Excluding the 2016
DuPont prepayment and the 2017 PFOA MDL settlement payment, 2017
year-to-date Free Cash Flow of $425
million would represent a $429
million improvement versus the previous-year's first nine
months.
Outlook
"The successful implementation of our Five Point Transformation
Plan has given us the solid foundation to build a future focused on
growth," commented Vergnano. "We continue to expect our 2017
Adjusted EBITDA to be between $1.3 and $1.4
billion, which far exceeds our original transformation plan
goal. We also expect 2017 Free Cash Flow to be positive, driven by
the strength of our results and the diligent work of our
employees."
Conference Call
As previously announced, Chemours will hold a conference call
and webcast on Friday, November 3,
2017 at 8:30 AM EDT. The
webcast and additional presentation materials can be accessed by
visiting the Events & Presentations page of Chemours'
investor website, investors.chemours.com. A webcast replay of the
conference call will be available on the Chemours' investor
website.
About The Chemours Company
The Chemours Company (NYSE: CC) helps create a colorful, capable
and cleaner world through the power of chemistry. Chemours is
a global leader in titanium technologies, fluoroproducts and
chemical solutions, providing its customers with solutions in a
wide range of industries with market-defining products, application
expertise and chemistry-based innovations. Chemours
ingredients are found in plastics and coatings, refrigeration and
air conditioning, mining and general industrial
manufacturing. Our flagship products include prominent brands
such as Teflon™, Ti-Pure™, Krytox™, Viton™, Opteon™, Freon™ and
Nafion™. Chemours has approximately 7,000 employees and 26
manufacturing sites serving approximately 4,000 customers in
North America, Latin America, Asia-Pacific and Europe.
Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE
under the symbol CC. For more information please visit
chemours.com.
Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally
Accepted Accounting Principles ("GAAP"). Within this press release,
we make reference to Adjusted Net Income (Loss), Adjusted EPS,
Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow, which
are non-GAAP financial measures. Free Cash Flow is defined as Cash
from Operations minus cash used for PP&E purchases. The company
includes these non-GAAP financial measures because management
believes they are useful to investors in that they provide for
greater transparency with respect to supplemental information used
by management in its financial and operational decision making.
Management uses Adjusted Net Income (Loss), Adjusted EPS,
Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow to
evaluate the company's performance excluding the impact of certain
noncash charges and other special items which we expect to be
infrequent in occurrence in order to have comparable financial
results to analyze changes in our underlying business from quarter
to quarter.
Accordingly, the company believes the presentation of these
non-GAAP financial measures, when used in conjunction with GAAP
financial measures, is a useful financial analysis tool that can
assist investors in assessing the company's operating performance
and underlying prospects. This analysis should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP. This analysis, as well as the other
information in this press release, should be read in conjunction
with the company's financial statements and footnotes contained in
the documents that the company files with the U.S. Securities and
Exchange Commission. The non-GAAP financial measures used by the
company in this press release may be different from the methods
used by other companies. For more information on the non-GAAP
financial measures, please refer to the attached schedules or the
table, "Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures" and materials posted to the website at
investors.chemours.com.
Forward-Looking Statements
This press release contains forward-looking statements, within
the meaning of the safe harbor provisions of the U.S. Private
Securities Litigation Reform Act of 1995, that involve risks and
uncertainties. Forward-looking statements provide current
expectations of future events based on certain assumptions and
include any statement that does not directly relate to any
historical or current fact. The words "believe," "expect," "will,"
"anticipate," "plan," "estimate," "anticipate," "target," "project"
and similar expressions, among others, generally identify
"forward-looking statements" which speak only as of the date the
statements were made. These forward-looking statements may address,
among other things, the outcome or resolution of any pending or
future environmental liabilities, litigation and other legal
proceedings or contingencies, anticipated future operating and
financial performance, business plans and prospects, transformation
plans, cost savings targets, plans to increase profitability and
our outlook for Adjusted EBITDA and Free Cash Flow, that are
subject to substantial risks and uncertainties that could cause
actual results to differ materially from those expressed or implied
by such statements. Forward-looking statements are based on certain
assumptions and expectations of future events which may not be
accurate or realized. Forward-looking statements also involve risks
and uncertainties which are beyond Chemours' control. Additionally,
there may be other risks and uncertainties that Chemours is unable
to identify at this time or that Chemours does not currently expect
to have a material impact on its business. Factors that could cause
or contribute to these differences include the risks, uncertainties
and other factors discussed in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2016.
Chemours assumes no obligation to revise or update any
forward-looking statement for any reason, except as required by
law.
CONTACT
MEDIA
Alvenia
Scarborough
Director, Brand Marketing and
Corporate Communications
+1.302.773.4507
media@chemours.com
INVESTORS
Alisha
Bellezza
Treasurer and Director of Investor
Relations
+1.302.773.2263
investor@chemours.com
The Chemours
Company
Interim Consolidated Statements of Operations
(Unaudited) (Dollars in millions, except per share
amounts)
|
|
|
|
Three Months Ended
September 30,
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net sales
|
|
$
|
1,584
|
|
|
$
|
1,398
|
|
|
$
|
4,608
|
|
|
$
|
4,078
|
|
Cost of goods
sold
|
|
|
1,117
|
|
|
|
1,056
|
|
|
|
3,341
|
|
|
|
3,267
|
|
Gross
profit
|
|
|
467
|
|
|
|
342
|
|
|
|
1,267
|
|
|
|
811
|
|
Selling, general and
administrative expense
|
|
|
148
|
|
|
|
148
|
|
|
|
444
|
|
|
|
454
|
|
Research and
development expense
|
|
|
20
|
|
|
|
19
|
|
|
|
61
|
|
|
|
60
|
|
Restructuring and
asset-related charges, net
|
|
|
8
|
|
|
|
60
|
|
|
|
31
|
|
|
|
145
|
|
Total
expenses
|
|
|
176
|
|
|
|
227
|
|
|
|
536
|
|
|
|
659
|
|
Equity in earnings of
affiliates
|
|
|
9
|
|
|
|
9
|
|
|
|
26
|
|
|
|
17
|
|
Interest expense,
net
|
|
|
(55)
|
|
|
|
(51)
|
|
|
|
(161)
|
|
|
|
(157)
|
|
Other income,
net
|
|
|
5
|
|
|
|
161
|
|
|
|
53
|
|
|
|
250
|
|
Income before
income taxes
|
|
|
250
|
|
|
|
234
|
|
|
|
649
|
|
|
|
262
|
|
Provision for income
taxes
|
|
|
43
|
|
|
|
30
|
|
|
|
130
|
|
|
|
25
|
|
Net
income
|
|
|
207
|
|
|
|
204
|
|
|
|
519
|
|
|
|
237
|
|
Less: Net income
attributable to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
Net income
attributable to Chemours
|
|
$
|
207
|
|
|
$
|
204
|
|
|
$
|
518
|
|
|
$
|
237
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per
share of common stock
|
|
$
|
1.12
|
|
|
$
|
1.12
|
|
|
$
|
2.81
|
|
|
$
|
1.31
|
|
Diluted earnings
per share of common stock
|
|
$
|
1.08
|
|
|
$
|
1.11
|
|
|
$
|
2.72
|
|
|
$
|
1.30
|
|
Dividends per share
of common stock
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.09
|
|
|
$
|
0.09
|
|
The Chemours
Company
Interim Consolidated Balance Sheets (Dollars in millions,
except per share amounts)
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,535
|
|
|
$
|
902
|
|
Accounts and notes
receivable - trade, net
|
|
|
942
|
|
|
|
807
|
|
Inventories
|
|
|
877
|
|
|
|
767
|
|
Prepaid expenses and
other
|
|
|
79
|
|
|
|
77
|
|
Total current
assets
|
|
|
3,433
|
|
|
|
2,553
|
|
Property, plant and
equipment
|
|
|
8,412
|
|
|
|
7,997
|
|
Less: Accumulated
depreciation
|
|
|
(5,462)
|
|
|
|
(5,213)
|
|
Property, plant and
equipment, net
|
|
|
2,950
|
|
|
|
2,784
|
|
Goodwill and other
intangible assets, net
|
|
|
167
|
|
|
|
170
|
|
Investments in
affiliates
|
|
|
166
|
|
|
|
136
|
|
Other
assets
|
|
|
404
|
|
|
|
417
|
|
Total
assets
|
|
$
|
7,120
|
|
|
$
|
6,060
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,010
|
|
|
$
|
884
|
|
Current maturities of
long-term debt
|
|
|
14
|
|
|
|
15
|
|
Other accrued
liabilities
|
|
|
546
|
|
|
|
872
|
|
Total current
liabilities
|
|
|
1,570
|
|
|
|
1,771
|
|
Long-term debt,
net
|
|
|
4,081
|
|
|
|
3,529
|
|
Deferred income
taxes
|
|
|
175
|
|
|
|
132
|
|
Other
liabilities
|
|
|
489
|
|
|
|
524
|
|
Total
liabilities
|
|
|
6,315
|
|
|
|
5,956
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock (par
value $0.01 per share; 810,000,000 shares authorized; 185,092,058
and 182,600,533 shares issued and outstanding at September 30, 2017
and December 31, 2016, respectively)
|
|
|
2
|
|
|
|
2
|
|
Additional paid-in
capital
|
|
|
830
|
|
|
|
789
|
|
Retained earnings
(accumulated deficit)
|
|
|
388
|
|
|
|
(114)
|
|
Accumulated other
comprehensive loss
|
|
|
(420)
|
|
|
|
(577)
|
|
Total Chemours
stockholders' equity
|
|
|
800
|
|
|
|
100
|
|
Non-controlling
interests
|
|
|
5
|
|
|
|
4
|
|
Total
equity
|
|
|
805
|
|
|
|
104
|
|
Total liabilities
and equity
|
|
$
|
7,120
|
|
|
$
|
6,060
|
|
The Chemours
Company
Interim Consolidated Statements of Cash Flows
(Unaudited) (Dollars in millions)
|
|
|
|
Nine Months Ended
September 30,
|
|
|
|
2017
|
|
|
2016
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
519
|
|
|
$
|
237
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
204
|
|
|
|
212
|
|
Amortization of
deferred financing costs and issuance discount
|
|
|
10
|
|
|
|
15
|
|
Gain on sale of assets
and businesses
|
|
|
(14)
|
|
|
|
(258)
|
|
Equity in earnings of
affiliates
|
|
|
(26)
|
|
|
|
(17)
|
|
Deferred tax provision
(benefit)
|
|
|
53
|
|
|
|
(29)
|
|
Asset-related
charges
|
|
|
3
|
|
|
|
109
|
|
Other operating
charges and credits, net
|
|
|
26
|
|
|
|
33
|
|
(Increase) decrease in
operating assets:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable - trade, net
|
|
|
(110)
|
|
|
|
(63)
|
|
Inventories and other
operating assets
|
|
|
(91)
|
|
|
|
113
|
|
(Decrease) increase in
operating liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
other operating liabilities
|
|
|
(238)
|
|
|
|
(28)
|
|
Cash provided by
operating activities
|
|
|
336
|
|
|
|
324
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(246)
|
|
|
|
(235)
|
|
Proceeds from sales of
assets and businesses, net
|
|
|
39
|
|
|
|
707
|
|
Foreign exchange
contract settlements, net
|
|
|
5
|
|
|
|
(1)
|
|
Investment in
affiliates
|
|
|
—
|
|
|
|
(2)
|
|
Cash (used for)
provided by investing activities
|
|
|
(202)
|
|
|
|
469
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt, net
|
|
|
494
|
|
|
|
—
|
|
Debt
repayments
|
|
|
(24)
|
|
|
|
(212)
|
|
Dividends
paid
|
|
|
(16)
|
|
|
|
(16)
|
|
Deferred financing
fees
|
|
|
(6)
|
|
|
|
(2)
|
|
Tax payments related
to withholdings on vested restricted stock units
|
|
|
(10)
|
|
|
|
—
|
|
Proceeds from
exercised stock options, net
|
|
|
30
|
|
|
|
—
|
|
Cash provided by (used
for) financing activities
|
|
|
468
|
|
|
|
(230)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
31
|
|
|
|
28
|
|
Increase in cash
and cash equivalents
|
|
|
633
|
|
|
|
591
|
|
Cash and cash
equivalents at beginning of the period
|
|
|
902
|
|
|
|
366
|
|
Cash and cash
equivalents at end of the period
|
|
$
|
1,535
|
|
|
$
|
957
|
|
Non-cash investing
activities
|
|
|
|
|
|
|
|
|
Change in property,
plant and equipment included in accounts payable
|
|
$
|
(16)
|
|
|
$
|
9
|
|
The Chemours
Company Segment Financial and Operating Data
(Unaudited) (Dollars in millions)
|
|
Segment Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
Ended
|
|
|
Sequential
|
|
|
September
30,
|
|
|
Increase
/
|
|
|
June
30,
|
|
|
Increase
/
|
|
|
2017
|
2016
|
|
|
(Decrease)
|
|
|
2017
|
|
|
(Decrease)
|
|
Titanium
Technologies
|
$
|
|
799
|
|
|
$
|
|
625
|
|
|
$
|
|
174
|
|
|
$
|
|
729
|
|
|
$
|
|
70
|
|
Fluoroproducts
|
|
|
637
|
|
|
|
|
591
|
|
|
|
|
46
|
|
|
|
|
710
|
|
|
|
|
(73)
|
|
Chemical
Solutions
|
|
|
148
|
|
|
|
|
182
|
|
|
|
|
(34)
|
|
|
|
|
149
|
|
|
|
|
(1)
|
|
Total Net
Sales
|
$
|
|
1,584
|
|
|
$
|
|
1,398
|
|
|
$
|
|
186
|
|
|
$
|
|
1,588
|
|
|
$
|
|
(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
|
|
|
Ended
|
|
|
Sequential
|
|
|
September
30,
|
|
|
Increase
/
|
|
|
June
30,
|
|
|
Increase
/
|
|
|
2017
|
2016
|
|
|
(Decrease)
|
|
|
2017
|
|
|
(Decrease)
|
|
Titanium
Technologies
|
$
|
|
249
|
|
|
$
|
|
144
|
|
|
$
|
|
105
|
|
|
$
|
|
193
|
|
|
$
|
|
56
|
|
Fluoroproducts
|
|
|
158
|
|
|
|
|
143
|
|
|
|
|
15
|
|
|
|
|
197
|
|
|
|
|
(39)
|
|
Chemical
Solutions
|
|
|
18
|
|
|
|
|
9
|
|
|
|
|
9
|
|
|
|
|
7
|
|
|
|
|
11
|
|
Corporate and
Other
|
|
|
(44)
|
|
|
|
|
(28)
|
|
|
|
|
(16)
|
|
|
|
|
(36)
|
|
|
|
|
(8)
|
|
Total Adjusted
EBITDA
|
$
|
|
381
|
|
|
$
|
|
268
|
|
|
$
|
|
113
|
|
|
$
|
|
361
|
|
|
$
|
|
20
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
24%
|
|
|
19%
|
|
|
|
|
|
23%
|
|
|
|
|
Quarterly Change
in Net Sales from September 30, 2016
|
|
|
|
|
|
|
|
|
Percentage
|
|
Percentage Change
Due To
|
|
|
September 30,
2017
Net
Sales
|
|
|
Change
vs.
September 30,
2016
|
|
Local
Price
|
|
Volume
|
|
Currency
Effect
|
|
Portfolio /
Other
|
|
Total
Company
|
$
|
|
1,584
|
|
|
|
13
|
%
|
|
9
|
%
|
|
6
|
%
|
|
1
|
%
|
|
(3)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium
Technologies
|
$
|
|
799
|
|
|
|
28
|
%
|
|
18
|
%
|
|
8
|
%
|
|
2
|
%
|
|
—
|
%
|
Fluoroproducts
|
$
|
637
|
|
|
|
8
|
%
|
|
2
|
%
|
|
5
|
%
|
|
1
|
%
|
|
—
|
%
|
Chemical
Solutions
|
$
|
148
|
|
|
|
(19)
|
%
|
|
—
|
%
|
|
5
|
%
|
|
—
|
%
|
|
(24)
|
%
|
Quarterly Change
in Net Sales from June 30, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
Percentage Change
Due To
|
|
|
September 30,
2017
Net
Sales
|
|
|
Change
vs.
June 30,
2017
|
|
Local
Price
|
|
Volume
|
|
Currency
Effect
|
|
Portfolio /
Other
|
|
Total
Company
|
$
|
|
1,584
|
|
|
|
—
|
%
|
|
3
|
%
|
|
(4)
|
%
|
|
1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium
Technologies
|
$
|
799
|
|
|
|
10
|
%
|
|
6
|
%
|
|
2
|
%
|
|
2
|
%
|
|
—
|
%
|
Fluoroproducts
|
$
|
637
|
|
|
|
(10)
|
%
|
|
2
|
%
|
|
(13)
|
%
|
|
1
|
%
|
|
—
|
%
|
Chemical
Solutions
|
$
|
148
|
|
|
|
(1)
|
%
|
|
(4)
|
%
|
|
3
|
%
|
|
—
|
%
|
|
—
|
%
|
The Chemours
Company Reconciliation of Non-GAAP Financial Measures to
GAAP Financial Measures (Unaudited) (Dollars in millions,
except per share amounts)
|
|
GAAP Net Income to
Adjusted Net Income and Adjusted EBITDA Tabular
Reconciliations
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Net income
attributable to Chemours
|
|
$
|
|
207
|
|
|
$
|
|
204
|
|
|
$
|
|
161
|
|
|
$
|
|
518
|
|
|
$
|
|
237
|
|
Non-operating pension
and other post-retirement employee benefit income
|
|
|
|
(7)
|
|
|
|
|
(5)
|
|
|
|
|
(10)
|
|
|
|
|
(24)
|
|
|
|
|
(19)
|
|
Exchange losses
(gains)
|
|
|
|
4
|
|
|
|
|
17
|
|
|
|
|
(2)
|
|
|
|
|
(3)
|
|
|
|
|
37
|
|
Restructuring
charges
|
|
|
|
8
|
|
|
|
|
14
|
|
|
|
|
6
|
|
|
|
|
31
|
|
|
|
|
41
|
|
Asset-related
charges
|
|
|
|
1
|
|
|
|
|
46
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
109
|
|
(Gain) loss on sale
of assets or businesses
|
|
|
—
|
|
|
|
|
(169)
|
|
|
|
|
2
|
|
|
|
|
(14)
|
|
|
|
|
(258)
|
|
Transaction costs
1
|
|
|
|
1
|
|
|
|
|
2
|
|
|
|
|
2
|
|
|
|
|
3
|
|
|
|
|
18
|
|
Legal and other
charges 2
|
|
|
|
7
|
|
|
|
|
5
|
|
|
|
|
10
|
|
|
|
|
18
|
|
|
|
|
24
|
|
Benefit from income
taxes relating to reconciling items 3
|
|
|
|
(7)
|
|
|
|
|
(2)
|
|
|
|
|
(5)
|
|
|
|
|
(10)
|
|
|
|
|
(16)
|
|
Adjusted Net
Income
|
|
|
|
214
|
|
|
|
|
112
|
|
|
|
|
166
|
|
|
|
|
522
|
|
|
|
|
173
|
|
Net income
attributable to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
—
|
|
Interest expense,
net
|
|
|
|
55
|
|
|
|
|
51
|
|
|
|
|
55
|
|
|
|
|
161
|
|
|
|
|
157
|
|
Depreciation and
amortization
|
|
|
|
62
|
|
|
|
|
73
|
|
|
|
|
71
|
|
|
|
|
204
|
|
|
|
|
212
|
|
All remaining
provision for income taxes 3
|
|
|
|
50
|
|
|
|
|
32
|
|
|
|
|
69
|
|
|
|
|
140
|
|
|
|
|
41
|
|
Adjusted
EBITDA
|
|
$
|
|
381
|
|
|
$
|
|
268
|
|
|
$
|
|
361
|
|
|
$
|
|
1,028
|
|
|
$
|
|
583
|
|
1 Includes accounting, legal
and bankers' transaction fees incurred related to the Company's
strategic initiatives.
2 Includes litigation settlements, water
treatment accruals related to PFOA, employee separation costs and
lease termination charges.
3 Total of (benefit from) provision for
income taxes reconciles to the amount reported in the Interim
Consolidated Statements of Operations for the three and nine months
ended September 30, 2017 and 2016 and
for the three months ended June 30,
2017.
GAAP Earnings per Share and Adjusted Earnings per Share –
Basic and Diluted
Adjusted Net Income diluted earnings per share is calculated
using Adjusted Net Income divided by diluted weighted-average
common shares outstanding during each period, which includes
unvested restricted shares. The table below shows a reconciliation
of the numerator and denominator for basic and diluted earnings per
share and adjusted earnings per share calculations for the periods
indicated:
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Chemours
|
|
$
|
|
207
|
|
|
$
|
|
204
|
|
|
$
|
|
161
|
|
|
$
|
|
518
|
|
|
$
|
|
237
|
|
Adjusted Net
Income
|
|
$
|
|
214
|
|
|
$
|
|
112
|
|
|
$
|
|
166
|
|
|
$
|
|
522
|
|
|
$
|
|
173
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding - basic
|
|
|
|
185,431,036
|
|
|
|
|
181,596,161
|
|
|
|
|
185,069,436
|
|
|
|
|
184,641,599
|
|
|
|
|
181,452,194
|
|
Dilutive effect of the
Company's employee compensation plans 1
|
|
|
|
6,206,778
|
|
|
|
|
1,932,395
|
|
|
|
|
6,057,203
|
|
|
|
|
5,909,015
|
|
|
|
|
1,089,738
|
|
Weighted-average
number of common shares outstanding - diluted
1
|
|
|
|
191,637,814
|
|
|
|
|
183,528,556
|
|
|
|
|
191,126,639
|
|
|
|
|
190,550,614
|
|
|
|
|
182,541,932
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
|
$
|
|
1.12
|
|
|
$
|
|
1.12
|
|
|
$
|
|
0.87
|
|
|
$
|
|
2.81
|
|
|
$
|
|
1.31
|
|
Earnings per share -
diluted 1
|
|
$
|
|
1.08
|
|
|
$
|
|
1.11
|
|
|
$
|
|
0.84
|
|
|
$
|
|
2.72
|
|
|
$
|
|
1.30
|
|
Adjusted earnings per
share - basic
|
|
$
|
|
1.15
|
|
|
$
|
|
0.62
|
|
|
$
|
|
0.90
|
|
|
$
|
|
2.83
|
|
|
$
|
|
0.95
|
|
Adjusted earnings per
share - diluted 1
|
|
$
|
|
1.12
|
|
|
$
|
|
0.61
|
|
|
$
|
|
0.87
|
|
|
$
|
|
2.74
|
|
|
$
|
|
0.95
|
|
1 Diluted earnings per share
is calculated using net income available to common shareholders
divided by diluted weighted-average common shares outstanding
during each period, which includes unvested restricted shares.
Diluted earnings per share considers the impact of potentially
dilutive securities except in periods in which there is a loss
because the inclusion of the potential common shares would have an
anti-dilutive effect.
The Chemours
Company Reconciliation of Non-GAAP Financial Measures to
GAAP Financial Measures (Unaudited)
(Dollars in millions)
|
|
2017 Estimated
GAAP Net Income to Estimated Adjusted EBITDA Tabular
Reconciliation
|
|
Estimated net income
1
|
|
$
|
605 - 680
|
Provision for income
taxes 1 2
|
|
|
195 - 220
|
Interest expense,
net
|
|
|
~ 220
|
Depreciation and
amortization
|
|
|
~ 280
|
Other reconciling
items 1 3
|
|
|
~ (0)
|
Estimated Adjusted
EBITDA 1
|
|
$
|
1,300 -
1,400
|
1 Our estimates reflect our
current visibility and expectations of market factors, such as but
not limited to, currency movements, TiO2 prices and
end-market demand. Actual results could differ materially from the
current estimates due to market factors and unknown or uncertainty
of other factors, such as an estimate of non-operating pension
benefit costs with respect to our foreign pension plans including
settlements or curtailments, cost savings actions that may be taken
in the future, the impact of currency movements on our results
including exchange gains and losses and the related tax
effects.
2 Provision for income tax is based on
our current estimate of geographic mix of earnings and does not
include potential tax effects of future discrete items.
3 Includes non-operating
pension benefit income, exchange gains and losses, gain on sale of
assets, restructuring and other charges recognized in the first
half of 2017.
GAAP Cash Flow
Provided by Operating Activities to Free Cash Flow Tabular
Reconciliation
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
September
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Cash flow provided by
operating activities 1 2
|
|
$
|
|
112
|
|
|
$
|
|
198
|
|
|
$
|
|
183
|
|
|
$
|
|
336
|
|
|
$
|
|
324
|
|
Cash flow used for
purchases of property, plant and equipment
|
|
|
|
(108)
|
|
|
|
|
(67)
|
|
|
|
|
(69)
|
|
|
|
|
(246)
|
|
|
|
|
(235)
|
|
Free Cash
Flow
|
|
$
|
|
4
|
|
|
$
|
|
131
|
|
|
$
|
|
114
|
|
|
$
|
|
90
|
|
|
$
|
|
89
|
|
1 Cash flow provided by
operating activities for the nine months ended September 30, 2017 and 2016 include the DuPont
prepayment of $190 million received
in the first quarter of 2016, of which $0
million and $93 million remain
outstanding as of September 30, 2017
and 2016, respectively. Excluding the DuPont prepayment, Free Cash
Flow for the nine months ended September 30,
2016 would have been negative $4
million.
2 Cash flow provided by
operating activities for the three and nine months ended
September 30, 2017 include PFOA MDL
settlement payments of $320 million
and $335 million, respectively.
Excluding the PFOA MDL settlement payments, Free Cash Flow for the
three and nine months ended September 30,
2017 would have been $324
million and $425 million,
respectively.
View original
content:http://www.prnewswire.com/news-releases/the-chemours-company-reports-third-quarter-results-300548848.html
SOURCE The Chemours Company