STAMFORD, Conn., March 26, 2020 /PRNewswire/ -- Tronox
Holdings plc (NYSE:TROX) ("Tronox" or the "Company"), provided an
investor update in light of the current global pandemic, to
emphasize the strength of the Company's cash flow, balance sheet
and sources of liquidity.
"Tronox is well positioned to meet the challenges of the current
situation and perform very well in the recovery that is to come,"
said Chairman and Chief Executive Officer Jeffry N. Quinn. "We are focusing on what we can
control, protecting our people and preserving our business. As we
are monitoring developments in all the regions in which we operate,
we are actively engaging with our customers, and continually
assessing a range of economic scenarios and their potential impact
to our markets, operations and financials. The flexibility gained
by our vertically integrated, globally diverse business model
and our integrated business planning capabilities, uniquely allows
us to swiftly respond to the dynamic conditions."
The first quarter is expected to close better than anticipated,
due to positive market trends and developments thus far in 2020.
The Company provided its outlook for the first quarter 2020:
- Revenue of $700 to $730 million
- Adjusted EBITDA of $160 to
$170 million
- Adjusted EPS of $0.10 to
$0.18
Commenting on the Company's current financial position, Mr.
Quinn noted, "We are comfortable with our current liquidity and
have broad flexibility to manage our cash flow. Our balance sheet
is solid, with no upcoming maturities on our term loan or bonds
until 2024. We also have no financial covenants on our term loan or
bonds and only a minor springing financial covenant on our ABL. We
have the ability to reduce our capital expenditures and manage our
working capital that, combined, could unlock over $200 million of cash should the need present
itself. Out of abundance of caution, we provided notice to
draw down $200 million of revolving
credit loans under our credit facilities as a precautionary measure
to increase liquidity and preserve financial flexibility. We plan
to repay the amounts drawn when the macro uncertainty
subsides. We also remain committed to maintaining the
recently increased dividend."
Mr. Quinn added, "Our vertical integration coupled with our
diverse, global footprint provides the flexibility for us to
leverage our assets to mitigate disruptions, while the regional
diversity of our customer base ensures we are not overly dependent
on any singular region. We are well positioned to successfully
manage through this uncertainty and are confident in our global
team's ability to safely lead through the ever-evolving global
pandemic. I want to thank each of our nearly 7,000 global employees
for their dedication and focus through these uncertain times. We
will continue to work diligently across our sites to operate safely
and supply our customers, and ensure we are prepared to take full
advantage of the inevitable economic rebound, in whatever form that
may be."
Upcoming Conferences
Tronox will participate in the following upcoming events:
- SunTrust Robinson Humphrey Corporate Access Call Series with
Jeffry Quinn, March 26, 2020 at 8:30am
ET (NY time)
- Virtual Non-deal Roadshow with BMO Capital Markets,
March 31, 2020
Accompanying materials will be available at
http://investor.tronox.com
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. With nearly 7,000
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.
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, including anticipated synergies,
based on our growth and other strategies and anticipated trends in
our business. 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 synergies, or achievements to differ
materially from the results, level of activity, performance,
anticipated synergies or achievements expressed or implied by the
forward-looking statements. Significant risks and uncertainties may
relate to, but are not limited to, market conditions and price
volatility for titanium dioxide, zircon and other feedstock
materials, as well as global and regional economic downturns,
including as a result of the coronavirus outbreak, 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 (SEC).
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-U.S. GAAP Financial Information
To provide investors and others with additional information
regarding the financial results of Tronox Holdings plc, we have
disclosed in this presentation certain non-U.S. GAAP operating
performance measures of Adjusted EBITDA and Adjusted EPS.
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. 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.
For the Company's guidance with respect to first quarter 2020
Adjusted EBITDA and Adjusted diluted earnings per share, 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 measure
are uncertain or out of our control, or cannot be reasonably
predicted.
Media Contact: Melissa Zona
+1.636.751.4057
Investor Contact: Brennen Arndt /
Jennifer Guenther
+1.646.960.6598
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SOURCE Tronox Holdings plc