First quarter results exceeded expectations
STAMFORD, Conn., April 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 March 31, 2023, as follows:
First Quarter 2023 Financial Highlights:
- Produced revenue of $708 million,
a decrease of 27% compared to the prior year
- Generated income from operations of $62
million and net income of $25
million
- Achieved GAAP diluted EPS of $0.15; adjusted diluted EPS of $0.15 (non-GAAP)
- Delivered Adjusted EBITDA of $146
million, and an Adjusted EBITDA margin of 20.6%
- Invested $93 million in capital
expenditures, primarily in our vertical integration and newTRON
initiatives
Q2 2023 Outlook:
- TiO2 volumes expected to increase in the mid- to
high-teens range compared to the first quarter 2023
- Adjusted EBITDA expected to be $160-170 million
This outlook is based on Tronox's views on current global
economic activity and is subject to changes and impacts associated
with the macroeconomic conditions, global supply chain, and
inflation-related challenges, among others.
Note: For the Company's guidance with respect to second
quarter 2023 non-GAAP measures, we are not able to provide without
unreasonable effort the most directly comparable GAAP financial
measure, or reconciliation to such GAAP financial measure, because
certain items that impact such measures are uncertain, out of the
Company's control or cannot be reasonably predicted.
Summary of Select Financial Results for the Quarter Ending
March 31, 2023
($M unless otherwise noted)
|
|
Q1 2023
|
Q1 2022
|
Y-o-Y % ∆
|
Q4 2022
|
Q-o-Q % ∆
|
Revenue
|
|
$708
|
$965
|
(27) %
|
$649
|
9 %
|
TiO2
|
|
$560
|
$773
|
(28) %
|
$478
|
17 %
|
Zircon
|
|
$72
|
$108
|
(33) %
|
$91
|
(21) %
|
Feedstock and other products
|
$76
|
$84
|
(10) %
|
$80
|
(5) %
|
Income from
operations
|
|
$62
|
$69
|
(10) %
|
$36
|
72 %
|
Net Income
(Loss)
|
|
$25
|
$16
|
56 %
|
($14)
|
n/m
|
Net Income (Loss)
attributable to Tronox
|
$23
|
$16
|
44 %
|
($15)
|
n/m
|
GAAP diluted earnings
(loss) per share
|
$0.15
|
$0.10
|
50 %
|
($0.09)
|
n/m
|
Adjusted diluted
earnings (loss) per share
|
$0.15
|
$0.60
|
(75) %
|
($0.17)
|
n/m
|
Adjusted
EBITDA
|
|
$146
|
$240
|
(39) %
|
$113
|
29 %
|
Adjusted EBITDA Margin %
|
|
20.6 %
|
24.9 %
|
(430)
bps
|
17.4 %
|
320
bps
|
Free cash
flow
|
|
($172)
|
$86
|
(300) %
|
$126
|
(237) %
|
|
|
|
|
|
|
|
|
Y-o-Y % ∆
|
Q-o-Q % ∆
|
|
Volume
|
Price
|
FX
|
Volume
|
Price
|
FX
|
TiO2
|
(30) %
|
3 %
|
(1) %
|
14 %
|
1 %
|
2 %
|
Zircon
|
(43) %
|
10 %
|
— %
|
(21) %
|
— %
|
— %
|
Co-CEOs' Remarks
"While this quarter continued to be challenged by softer
end-market demand compared to the prior year, we delivered a
stronger quarter than expected," commented John D. Romano, co-chief executive officer.
"Sequentially, TiO2 volumes improved 14%, within the
previously guided range, and average selling prices improved 1%
compared to the prior quarter, or 3% compared to the prior year,
despite 30% lower volumes year-on-year. Adjusted EBITDA was
$146 million in the quarter,
exceeding the top end of our guided range by $16 million, primarily due to favorable exchange
rates compared to our forecast, prudent cost and discretionary
spend management and lower costs on the volumes sold in the
quarter. Tronox's first quarter financial results are a
demonstration of the strength and advantages of our vertically
integrated portfolio. Through our investments in vertical
integration, we are able to realize a cost advantage and security
of supply that is a key differentiator for Tronox.
Additionally, we continue to deliver against our commercial
strategy and realize favorable pricing trends despite the macro
backdrop. I am proud of the Tronox team's dedication and
commitment."
Mr. Romano continued, "Looking ahead, we expect second quarter
pigment volumes to increase in the mid- to high-teens range
compared to first quarter 2023, driven by continued demand
improvement across all regions."
Jean-François Turgeon, co-chief executive officer, added, "We
continue to focus on managing our costs while utilizing the
numerous levers we have available to optimize performance and adapt
to market conditions. We are happy to report that our upgrading
operations at KZN in South Africa
are back to full utilization levels following the fire in the
fourth quarter that impacted production rates. Additionally, our
Atlas mining operations in Australia are also up and running. We are
continuing to work with the local authorities towards being able to
utilize the primary roads for hauling material offsite, which we
anticipate will occur mid-2023. For the second quarter 2023, we
anticipate generating an Adjusted EBITDA of $160-170 million, primarily as a result of
improved TiO2 and zircon volumes, partially offset by unfavorable
product mix impacts and higher costs at our mining sites including
increased energy costs in South
Africa and higher hauling costs in Australia. We will continue to balance cash
generation while ensuring we have the product necessary to meet our
customers' needs and are effectively positioning Tronox for future
success."
First Quarter 2023 Results
(Comparisons are to
prior year (Q1 2023 vs. Q1 2022) unless otherwise noted)
The Company recorded first quarter revenue of $708 million, a decrease of 27%, primarily driven
by lower sales volumes. Revenue from TiO2 sales was
$560 million, a decline of 28% driven
by a 30% decline in volumes, a 3% increase in average selling
prices and a 1% decrease due to exchange rates. Sequentially,
TiO2 sales increased 17%, driven by a 14% increase in
sales volumes, a 1% increase in average selling prices and a 2%
increase due to exchange rates.
Zircon revenue decreased 33% to $72
million driven by a 43% decline in volumes, partially offset
by a 10% increase in average selling prices. Sequentially, zircon
revenue decreased 21%, driven by a 21% decrease in volumes while
average selling prices remained level.
Revenue from other products was $76
million, a decline of 10% year-over-year and 5%
sequentially, primarily driven by lower pig iron volumes and
average selling prices. Partially offsetting the lower pig iron
sales were sales of rare earth elements, which increased 62%
year-over-year.
Net income attributable to Tronox in the quarter of $23 million, or $0.15 per diluted share, compared to net income
attributable to Tronox of $16
million, or $0.10 per diluted
share in the year-ago period. Excluding non-recurring adjustments
totaling $1 million, adjusted net
income attributable to Tronox (non-GAAP) was $24 million, or $0.15 per diluted share.
Adjusted EBITDA of $146 million
represented a 39% decrease compared to the first quarter 2022,
driven by unfavorable fixed cost absorption due to lower production
rates, higher process chemical costs, higher mining site costs, and
lower sales volumes, partially offset by improved pricing,
favorable exchange rates, and lower freight costs. Adjusted EBITDA
margin was 20.6% for the quarter.
Sequentially, Adjusted EBITDA increased 29% due to improved
freight and corporate costs, the roll-off of lower cost or market
and other abnormal charges from the fourth quarter, higher sales
volumes and improved product mix, and improved pricing, partially
offset by exchange rate headwinds.
The Company's selling, general and administrative expenses were
$71 million in the quarter, a
decrease of 9%. Tronox's first quarter net interest expense was
$30 million. Depreciation, depletion and amortization expense
was $71 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 3.3x on a
trailing twelve-month basis. Available liquidity at the end of the
quarter totaled $432 million,
including $115 million in cash and
cash equivalents and $317 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 a use of $172 million primarily due to higher working
capital needs including increased inventories inclusive of
purchases of Jazan slag, higher accounts receivable driven by
improved sales and lower accounts payable. Capital expenditures
were $93 million, including
investments in the Company's key capital initiatives, such as
newTRON, the Company's global business transformation project to
improve, automate and digitize, and vertical integration projects
to sustain Tronox's internalization of feedstocks and associated
cost advantages. These investments are expected to generate returns
significantly above the Company's cost of capital and sustain
Tronox's position as a leading low-cost producer.
Sustainability
In an effort to create a more centralized approach to
communication of the Company's sustainability efforts, the Company
appointed Jennifer Guenther to the
role of Chief Sustainability Officer, and Head of Investor
Relations and Financial Planning. Mr. Turgeon commented, "We are
relentlessly focused on sustainability at Tronox, and this
area is becoming an increasingly significant focal point for our
investors, customers and other key stakeholders. Having Jennifer
lead these efforts will provide greater insight externally into the
exciting ongoing work around ESG and ensure our efforts continue to
align Tronox towards a more profitable and sustainable future, as
we believe these two go hand in hand."
Additionally, the Company will be publishing its 2022
Sustainability Report in May 2023.
This report will reinforce the previously disclosed path to carbon
neutrality by 2050. This year, the Company is also committing for
the first time to targets to reduce scope 3 emissions intensity by
9% by 2025 and 16% by 2030 against a 2021 baseline. Mr. Turgeon
added, "We are excited about the continued progress we make each
year to become more fully aligned with the expectations of our key
stakeholders."
Webcast Conference Call
Tronox will conduct a webcast conference call on Thursday, April 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 (833) 470-1428
International: 001 404 975 4839
Access code: 614920
Conference Call Presentation Slides will be used during
the conference call and will be available on our website:
http://investor.tronox.com
Conference Call Replay: Available via the internet and
telephone beginning on April 27,
2023, by
11:00 a.m. ET, until May 4, 2023, 11:59 p.m.
ET.
Internet Replay:
http://investor.tronox.com
Replay Dial-in Telephone Numbers:
United States: +1 (866) 813-9403
International: 001 929 458 6194
Replay Access Code: 358146
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
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 INCOME (U.S. GAAP)
|
(UNAUDITED)
|
(Millions of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2023
|
|
2022
|
Net
sales
|
$
708
|
|
$
965
|
Cost of goods
sold
|
575
|
|
733
|
Gross
profit
|
133
|
|
232
|
Selling, general and
administrative expenses
|
71
|
|
78
|
Venator
settlement
|
—
|
|
85
|
Income from
operations
|
62
|
|
69
|
Interest
expense
|
(33)
|
|
(32)
|
Interest
income
|
3
|
|
2
|
Loss on extinguishment
of debt
|
—
|
|
(1)
|
Other income (expense),
net
|
2
|
|
(4)
|
Income before income
taxes
|
34
|
|
34
|
Income tax
provision
|
(9)
|
|
(18)
|
Net
income
|
25
|
|
16
|
Net income attributable
to noncontrolling interest
|
2
|
|
—
|
Net income
attributable to Tronox Holdings plc
|
$
23
|
|
$
16
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
0.15
|
|
$
0.10
|
Diluted
|
$
0.15
|
|
$
0.10
|
|
|
|
|
Weighted average
shares outstanding, basic (in thousands)
|
155,175
|
|
154,629
|
Weighted average
shares outstanding, diluted (in thousands)
|
156,641
|
|
159,577
|
|
|
|
|
Other Operating
Data:
|
|
|
|
Capital
expenditures
|
93
|
|
103
|
Depreciation, depletion
and amortization expense
|
71
|
|
68
|
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 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
March 31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Net income attributable
to Tronox Holdings plc (U.S. GAAP)
|
$
23
|
|
$
16
|
|
|
|
|
|
|
Venator settlement
(a)
|
—
|
|
85
|
|
Loss on extinguishment
of debt (b)
|
—
|
|
1
|
|
Income tax expense -
deferred tax assets (c)
|
—
|
|
(7)
|
|
Other (d)
|
1
|
|
1
|
|
Adjusted net income
attributable to Tronox Holdings plc (non-U.S. GAAP)
(1)
|
$
24
|
|
$
96
|
|
|
|
|
|
|
Diluted net income per
share (U.S. GAAP)
|
$
0.15
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
|
|
Venator settlement, per
share
|
—
|
|
0.53
|
|
Loss on extinguishment
of debt, per share
|
—
|
|
0.01
|
|
Income tax expense -
deferred tax assets, per share
|
—
|
|
(0.04)
|
|
Other, per
share
|
—
|
|
0.01
|
|
Diluted adjusted net
income per share attributable to Tronox Holdings plc (non-U.S.
GAAP) (2)
|
$
0.15
|
|
$
0.60
|
|
|
|
|
|
|
Weighted average shares
outstanding, diluted (in thousands)
|
156,641
|
|
159,577
|
|
|
|
|
|
|
(1) No income tax
impacts have been given to any items 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 breakage
fee including interest associated with the Venator settlement which
were recorded in "Venator settlement" in the unaudited
Condensed
Consolidated Statements of Income.
|
(b) 2022 amount
represents the loss in connection with the redemption of the 6.5%
Senior Secured Notes and 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 foreign tax jurisdictions.
|
(d) Represents other
activity not representative of ongoing operations of the
Company.
|
TRONOX HOLDINGS
PLC
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(UNAUDITED)
|
(Millions of U.S.
dollars, except share and per share data)
|
|
|
|
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
Current
Assets
|
|
|
|
Cash and cash
equivalents
|
$
115
|
|
$
164
|
Accounts receivable
(net of allowance for credit losses of $4 million and $4 million as
of March 31,
2023 and December 31, 2022, respectively)
|
411
|
|
377
|
Inventories,
net
|
1,359
|
|
1,278
|
Prepaid and other
assets
|
134
|
|
135
|
Income taxes
receivable
|
5
|
|
6
|
Total current
assets
|
2,024
|
|
1,960
|
|
|
|
|
Noncurrent
Assets
|
|
|
|
Property, plant and
equipment, net
|
1,820
|
|
1,830
|
Mineral leaseholds,
net
|
683
|
|
701
|
Intangible assets,
net
|
249
|
|
250
|
Lease right of use
assets, net
|
138
|
|
136
|
Deferred tax
assets
|
1,243
|
|
1,233
|
Other long-term
assets
|
202
|
|
196
|
Total
assets
|
$
6,359
|
|
$
6,306
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
Current
Liabilities
|
|
|
|
Accounts
payable
|
$
410
|
|
$
486
|
Accrued
liabilities
|
263
|
|
252
|
Short-term lease
liabilities
|
22
|
|
20
|
Short-term
debt
|
176
|
|
50
|
Long-term debt due
within one year
|
24
|
|
24
|
Income taxes
payable
|
20
|
|
18
|
Total current
liabilities
|
915
|
|
850
|
|
|
|
|
Noncurrent
Liabilities
|
|
|
|
Long-term debt,
net
|
2,458
|
|
2,464
|
Pension and
postretirement healthcare benefits
|
91
|
|
89
|
Asset retirement
obligations
|
151
|
|
153
|
Environmental
liabilities
|
50
|
|
51
|
Long-term lease
liabilities
|
110
|
|
110
|
Deferred tax
liabilities
|
152
|
|
153
|
Other long-term
liabilities
|
33
|
|
33
|
Total
liabilities
|
3,960
|
|
3,903
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
Shareholders'
Equity
|
|
|
|
Tronox Holdings plc
ordinary shares, par value $0.01 — 156,717,050 shares issued
and
outstanding at March 31, 2023 and 154,496,923 shares issued and
outstanding at December 31,
2022
|
2
|
|
2
|
Capital in excess of
par value
|
2,049
|
|
2,043
|
Retained
earnings
|
1,083
|
|
1,080
|
Accumulated other
comprehensive loss
|
(785)
|
|
(768)
|
Total Tronox
Holdings plc shareholders' equity
|
2,349
|
|
2,357
|
Noncontrolling
interest
|
50
|
|
46
|
Total
equity
|
2,399
|
|
2,403
|
Total liabilities
and equity
|
$
6,359
|
|
$
6,306
|
TRONOX HOLDINGS
PLC
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(UNAUDITED)
|
(Millions of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
2023
|
|
2022
|
Cash Flows from
Operating Activities:
|
|
|
|
Net income
|
$
25
|
|
$
16
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation, depletion
and amortization
|
71
|
|
68
|
Deferred income
taxes
|
(1)
|
|
4
|
Share-based
compensation expense
|
6
|
|
7
|
Amortization of
deferred debt issuance costs and discount on debt
|
2
|
|
2
|
Loss on extinguishment
of debt
|
-
|
|
1
|
Venator
settlement
|
-
|
|
85
|
Other non-cash items
affecting net income
|
16
|
|
2
|
Changes in assets and
liabilities:
|
|
|
|
Increase in accounts
receivable, net of allowance for credit losses
|
(41)
|
|
(11)
|
(Increase) decrease in
inventories, net
|
(83)
|
|
21
|
Decrease (increase) in
prepaid and other assets
|
2
|
|
(17)
|
(Decrease) increase in
accounts payable and accrued liabilities
|
(68)
|
|
18
|
Net changes in income
tax payables and receivables
|
2
|
|
7
|
Changes in other
non-current assets and liabilities
|
(10)
|
|
(14)
|
Cash (used in) provided
by operating activities
|
(79)
|
|
189
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
Capital
expenditures
|
(93)
|
|
(103)
|
Proceeds from sale of
assets
|
2
|
|
1
|
Cash used in investing
activities
|
(91)
|
|
(102)
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
Repayments of
short-term debt
|
(26)
|
|
-
|
Repayments of long-term
debt
|
(4)
|
|
(3)
|
Proceeds from
short-term debt
|
152
|
|
-
|
Repurchase of common
stock
|
-
|
|
(25)
|
Dividends
paid
|
(2)
|
|
(1)
|
Cash provided by (used
in) financing activities
|
120
|
|
(29)
|
|
|
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
1
|
|
6
|
|
|
|
|
Net (decrease)
increase in cash and cash equivalents
|
(49)
|
|
64
|
Cash and cash
equivalents at beginning of period
|
164
|
|
232
|
Cash and cash
equivalents at end of period
|
$
115
|
|
$
296
|
TRONOX HOLDINGS
PLC
|
RECONCILIATION OF
NET INCOME TO EBITDA AND ADJUSTED EBITDA (NON-U.S.
GAAP)
|
(UNAUDITED)
|
(Millions of U.S.
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
Net income (U.S.
GAAP)
|
$
25
|
|
$
16
|
|
Interest
expense
|
33
|
|
32
|
|
Interest
income
|
(3)
|
|
(2)
|
|
Income tax
provision
|
9
|
|
18
|
|
Depreciation, depletion
and amortization expense
|
71
|
|
68
|
|
EBITDA (non-U.S.
GAAP)
|
135
|
|
132
|
|
Share-based
compensation (a)
|
6
|
|
7
|
|
Venator settlement
(b)
|
—
|
|
85
|
|
Loss on extinguishment
of debt (c)
|
—
|
|
1
|
|
Foreign currency
remeasurement (d)
|
(1)
|
|
8
|
|
Other items
(e)
|
6
|
|
7
|
|
Adjusted EBITDA
(non-U.S. GAAP)
|
$ 146
|
|
$
240
|
|
|
|
|
|
|
|
|
|
|
|
(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 Income.
|
(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 (expense), net" in the unaudited Condensed Consolidated
Statements of Income.
|
(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 (expense), net" in the
unaudited Condensed Consolidated Statements of Income.
|
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 months ended March 31, 2023:
|
|
|
|
|
|
Three Months
Ended
March 31, 2023
|
Cash used in operating
activities
|
|
$
(79)
|
Capital
expenditures
|
|
(93)
|
Free
cash flow (non-U.S. GAAP)
|
|
$
(172)
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/tronox-reports-first-quarter-2023-financial-results-301808768.html
SOURCE Tronox Holdings plc