"We are making great progress toward reaching our goal of positioning
Second Quarter 2017
Tronox TiO2
TiO2 segment revenue of
Compared sequentially, TiO2 segment revenue of
TiO2 segment adjusted EBITDA of
Alkali segment revenue of
Compared sequentially, Alkali revenue of
Alkali segment adjusted EBITDA of
Corporate
Corporate loss from operations was
Consolidated
Selling, general and administrative expenses were
Webcast Conference Call
Internet Broadcast: http://www.tronox.com/
Dial-in telephone numbers:
International: +1.253.237.1184
Conference ID: 54296385
Conference Call Presentation Slides will be used during the conference call and are available on our website at http://www.tronox.com/
Webcast Conference Call Replay: Available via the
Internet Replay: www.tronox.com
Replay dial-in telephone numbers:
International: +1.404.537.3406
Conference ID: 54296385
Upcoming Conferences
During the third quarter 2017 a member of management is scheduled to present at the following conferences:
Accompanying conference materials will be available at http://investor.tronox.com
About
Forward Looking Statements
Statements in this release that are not historical are forward-looking statements within the meaning of the
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 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 as a result of new information or future developments.
Use of Non-
To provide investors and others with additional information regarding
Management believes these non-
Media Contact:
Direct: +1.203.705.3721
Investor Contact:
Direct: +1.203.705.3722
| |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (US GAAP) | |||||||||
(UNAUDITED) | |||||||||
(Millions of | |||||||||
Three Months Ended |
Six Months Ended | ||||||||
2017 |
2016 |
2017 |
2016 | ||||||
Net sales |
$ 622 |
$ 538 |
$ 1,191 |
$ 1,014 | |||||
Cost of goods sold |
498 |
479 |
977 |
934 | |||||
Gross profit |
124 |
59 |
214 |
80 | |||||
Selling, general, and administrative expenses |
(69) |
(51) |
(143) |
(101) | |||||
Restructuring income (expense) |
- |
1 |
- |
(1) | |||||
Income (loss) from operations |
55 |
9 |
71 |
(22) | |||||
Interest and debt expense, net |
(46) |
(46) |
(92) |
(92) | |||||
Gain on extinguishment of debt |
- |
- |
- |
4 | |||||
Other expense, net |
(1) |
(3) |
(7) |
(12) | |||||
Income (loss) before income taxes |
8 |
(40) |
(28) |
(122) | |||||
Income tax provision |
(3) |
(10) |
(5) |
(22) | |||||
Net income (loss) |
5 |
(50) |
(33) |
(144) | |||||
Net income (loss) attributable to noncontrolling interest |
2 |
2 |
5 |
1 | |||||
Net income (loss) attributable to |
$ 3 |
$ (52) |
$ (38) |
$ (145) | |||||
Net income (loss) per share, basic and diluted |
$ 0.02 |
$ (0.44) |
$ (0.32) |
$ (1.24) | |||||
Weighted average shares outstanding (in thousands): |
|||||||||
Basic |
119,188 |
116,184 |
118,804 |
116,052 | |||||
Diluted |
124,301 |
116,184 |
118,804 |
116,052 | |||||
Other Operating Data: |
|||||||||
Capital expenditures |
$ 24 |
$ 22 |
$ 56 |
$ 55 | |||||
Depreciation, depletion and amortization expense |
$ 62 |
$ 60 |
$ 123 |
$ 115 |
| ||||||||
RECONCILIATION OF NON- | ||||||||
(UNAUDITED) | ||||||||
(Millions of | ||||||||
RECONCILIATION OF NET INCOME (LOSS) | ||||||||
ATTRIBUTABLE TO TRONOX LIMITED ( | ||||||||
TO ADJUSTED NET INCOME (LOSS) | ||||||||
ATTRIBUTABLE TO TRONOX LIMITED (NON- | ||||||||
Three Months Ended |
Six Months Ended | |||||||
2017 |
2016 |
2017 |
2016 | |||||
Net income (loss) attributable to |
$ 3 |
$ (52) |
$ (38) |
$ (145) | ||||
Acquisition related matters (a) |
9 |
- |
20 |
- | ||||
Restructuring (income) expense (b) |
- |
(1) |
- |
1 | ||||
Gain on extinguishment of debt (c) |
- |
- |
- |
(4) | ||||
Adjusted net income (loss) attributable to |
$ 12 |
$ (53) |
$ (18) |
$ (148) | ||||
Diluted net income (loss) per share attributable to |
$ 0.02 |
$ (0.44) |
$ (0.32) |
$ (1.24) | ||||
Acquisition related expense, per share |
0.07 |
- |
0.17 |
- | ||||
Restructuring (income) expense, per share |
- |
(0.01) |
- |
0.01 | ||||
Gain on extinguishment of debt, per share |
- |
- |
- |
(0.03) | ||||
Diluted adjusted income (loss) per share attributable to |
$ 0.09 |
$ (0.45) |
$ (0.15) |
$ (1.26) | ||||
Weighted average shares outstanding, diluted (in thousands) |
124,301 |
116,184 |
118,804 |
116,052 | ||||
(a) |
Represents transaction costs associated with the Cristal Transaction which were recorded in "Selling, general and administrative expenses" in the unaudited Condensed Consolidated Statements of Operations during the three and six months ended | |||||||
(b) |
Represents severance costs associated with the shutdown of our sodium chlorate plant and other global TiO2 restructuring efforts, which was recorded in "Restructuring expense" in the unaudited Condensed Consolidated Statements of Operations. | |||||||
(c) |
Represents the gain associated with the repurchase of | |||||||
(d) |
No income tax impact given full valuation allowance except for |
| ||||||||
SEGMENT INFORMATION | ||||||||
(UNAUDITED) | ||||||||
(Millions of | ||||||||
Three Months Ended |
Six Months Ended | |||||||
2017 |
2016 |
2017 |
2016 | |||||
TiO2 segment |
$ 421 |
$ 333 |
$ 799 |
$ 618 | ||||
Alkali segment |
201 |
205 |
392 |
396 | ||||
Net sales |
$ 622 |
$ 538 |
$ 1,191 |
| ||||
TiO2 segment |
$ 61 |
$ 7 |
$ 93 |
$ (29) | ||||
Alkali segment |
23 |
12 |
42 |
33 | ||||
Corporate |
(29) |
(10) |
(64) |
(26) | ||||
Income (loss) from operations |
55 |
9 |
71 |
(22) | ||||
Interest and debt expense, net |
(46) |
(46) |
(92) |
(92) | ||||
Gain on extinguishment of debt |
- |
- |
- |
4 | ||||
Other expense, net |
(1) |
(3) |
(7) |
(12) | ||||
Income (loss) before income taxes |
8 |
(40) |
(28) |
(122) | ||||
Income tax provision |
(3) |
(10) |
(5) |
(22) | ||||
Net income (loss) |
5 |
(50) |
(33) |
(144) | ||||
Net income (loss) attributable to noncontrolling interest |
2 |
2 |
5 |
1 | ||||
Net income (loss) attributable to |
$ 3 |
$ (52) |
$ (38) |
$ (145) |
| ||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
(UNAUDITED) | ||||||
(Millions of | ||||||
|
| |||||
ASSETS |
2017 |
2016 | ||||
Current Assets |
||||||
Cash and cash equivalents |
$ 303 |
$ 248 | ||||
Restricted cash |
2 |
3 | ||||
Accounts receivable, net of allowance for doubtful accounts |
457 |
424 | ||||
Inventories, net |
506 |
532 | ||||
Prepaid and other assets |
54 |
49 | ||||
Total current assets |
1,322 |
1,256 | ||||
Noncurrent Assets |
||||||
Property, plant and equipment, net |
1,816 |
1,831 | ||||
Mineral leaseholds, net |
1,608 |
1,607 | ||||
Intangible assets, net |
210 |
223 | ||||
Inventories, net |
15 |
14 | ||||
Other long-term assets |
23 |
22 | ||||
Total assets |
$ 4,994 |
$ 4,953 | ||||
LIABILITIES AND EQUITY |
||||||
Current Liabilities |
||||||
Accounts payable |
$ 201 |
$ 180 | ||||
Accrued liabilities |
181 |
186 | ||||
Short-term debt |
150 |
150 | ||||
Long-term debt due within one year |
16 |
16 | ||||
Income taxes payable |
2 |
1 | ||||
Total current liabilities |
550 |
533 | ||||
Noncurrent Liabilities |
||||||
Long-term debt, net |
2,886 |
2,888 | ||||
Pension and postretirement healthcare benefits |
116 |
122 | ||||
Asset retirement obligations |
76 |
73 | ||||
Long-term deferred tax liabilities |
161 |
152 | ||||
Other long-term liabilities |
30 |
32 | ||||
Total liabilities |
3,819 |
3,800 | ||||
Commitments and Contingencies |
||||||
Shareholders' Equity |
||||||
Tronox Limited Class A ordinary shares, par value |
1 |
1 | ||||
Tronox Limited Class B ordinary shares, par value |
- |
- | ||||
Capital in excess of par value |
1,535 |
1,524 | ||||
Accumulated deficit |
(69) |
(19) | ||||
Accumulated other comprehensive loss |
(454) |
(497) | ||||
|
1,013 |
1,009 | ||||
Noncontrolling interest |
162 |
144 | ||||
Total equity |
1,175 |
1,153 | ||||
Total liabilities and equity |
$ 4,994 |
$ 4,953 |
| |||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
(UNAUDITED) | |||
(Millions of | |||
Six Months Ended | |||
2017 |
2016 | ||
Cash Flows from Operating Activities: |
|||
Net loss |
|
| |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|||
Depreciation, depletion and amortization |
123 |
115 | |
Deferred income taxes |
2 |
(3) | |
Share-based compensation expense |
22 |
10 | |
Amortization of deferred debt issuance costs and discount on debt |
6 |
5 | |
Pension and postretirement healthcare benefit expense |
4 |
3 | |
Gain on extinguishment of debt |
- |
(4) | |
Other, net |
9 |
20 | |
Contributions to employee pension and postretirement plans |
(11) |
(9) | |
Changes in assets and liabilities: |
|||
(Increase) decrease in accounts receivable, net |
(28) |
(13) | |
(Increase) decrease in inventories, net |
36 |
87 | |
(Increase) decrease in prepaid and other assets |
(6) |
(2) | |
Increase (decrease) in accounts payable and accrued liabilities |
12 |
(16) | |
Increase (decrease) in income taxes payable |
1 |
20 | |
Cash provided by operating activities |
137 |
69 | |
Cash Flows from Investing Activities: |
|||
Capital expenditures |
(56) |
(55) | |
Proceeds from the sale of assets |
- |
1 | |
Cash used in investing activities |
(56) |
(54) | |
Cash Flows from Financing Activities: |
|||
Repayments of debt |
(8) |
(23) | |
Proceeds from debt |
- |
- | |
Dividends paid |
(12) |
(35) | |
Restricted stock and performance-based shares settled in cash for taxes |
(11) |
- | |
Cash used in financing activities |
(31) |
(58) | |
Effects of exchange rate changes on cash and cash equivalents |
5 |
2 | |
Net increase (decrease) in cash and cash equivalents |
55 |
(41) | |
Cash and cash equivalents at beginning of period |
248 |
229 | |
Cash and cash equivalents at end of period |
|
|
| |||||||||||||||
CONDENSED STATEMENT OF FREE CASH FLOWS (NON- | |||||||||||||||
(UNAUDITED) | |||||||||||||||
(Millions of | |||||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||||
TiO2 |
Alkali |
Corporate |
Consolidated |
TiO2 |
Alkali |
Corporate |
Consolidated | ||||||||
Operating income (loss) ( |
$ 61 |
$ 23 |
$ (29) |
$ 55 |
$ 93 |
$ 42 |
$ (64) |
$ 71 | |||||||
Depreciation, depletion and amortization expense |
44 |
16 |
2 |
62 |
88 |
32 |
3 |
123 | |||||||
Other |
18 |
2 |
3 |
23 |
27 |
5 |
15 |
47 | |||||||
Adjusted EBITDA (non- |
|
$ 41 |
$ (24) |
$ 140 |
|
$ 79 |
$ (46) |
$ 241 | |||||||
Adjusted EBITDA (non- |
|
$ 41 |
$ (24) |
$ 140 |
|
$ 79 |
$ (46) |
$ 241 | |||||||
Interest paid, net of capitalized interest and |
- |
- |
(16) |
(16) |
- |
- |
(84) |
(84) | |||||||
Income tax provision |
- |
- |
(3) |
(3) |
- |
- |
(5) |
(5) | |||||||
Transaction costs |
- |
- |
(9) |
(9) |
- |
- |
(20) |
(20) | |||||||
Contributions to employee pension and |
(5) |
(1) |
- |
(6) |
(9) |
(2) |
- |
(11) | |||||||
Deferred income taxes |
- |
- |
3 |
3 |
- |
- |
2 |
2 | |||||||
Other |
(3) |
(1) |
(26) |
(30) |
- |
(1) |
- |
(1) | |||||||
Changes in assets and liabilities |
|||||||||||||||
(Increase) decrease in accounts receivable, net |
(25) |
- |
- |
(25) |
(35) |
7 |
- |
(28) | |||||||
(Increase) decrease in inventories, net |
10 |
- |
- |
10 |
37 |
(1) |
- |
36 | |||||||
(Increase) decrease in prepaid and other assets |
(15) |
(1) |
1 |
(15) |
(10) |
4 |
- |
(6) | |||||||
Increase (decrease) in accounts payable and |
1 |
(3) |
31 |
29 |
6 |
2 |
4 |
12 | |||||||
Increase (decrease) in income taxes payable |
- |
- |
(1) |
(1) |
- |
- |
1 |
1 | |||||||
Subtotal |
(29) |
(4) |
31 |
(2) |
(2) |
12 |
5 |
15 | |||||||
Cash provided by (used in) operating activities |
86 |
35 |
(44) |
77 |
197 |
88 |
(148) |
137 | |||||||
Capital expenditures |
(19) |
(4) |
(1) |
(24) |
(39) |
(16) |
(1) |
(56) | |||||||
Free cash flow (non- |
$ 67 |
$ 31 |
$ (45) |
$ 53 |
|
$ 72 |
$ (149) |
$ 81 |
| ||||||||
RECONCILIATION OF NET INCOME (LOSS) TO EBITDA AND ADJUSTED EBITDA (NON- | ||||||||
(UNAUDITED) | ||||||||
(Millions of | ||||||||
Three Months Ended |
Six Months Ended | |||||||
2017 |
2016 |
2017 |
2016 | |||||
Net income (loss) ( |
$ 5 |
|
|
| ||||
Interest and debt expense, net |
46 |
46 |
92 |
92 | ||||
Interest income |
(1) |
(1) |
(2) |
(2) | ||||
Income tax provision |
3 |
10 |
5 |
22 | ||||
Depreciation, depletion and amortization expense |
62 |
60 |
123 |
115 | ||||
EBITDA (non- |
115 |
65 |
185 |
83 | ||||
Share-based compensation (a) |
8 |
5 |
22 |
10 | ||||
Transaction costs (b) |
9 |
- |
20 |
- | ||||
Restructuring (income) expense (c) |
- |
(1) |
- |
1 | ||||
Gain on extinguishment of debt (d) |
- |
- |
- |
(4) | ||||
Foreign currency remeasurement (e) |
3 |
4 |
6 |
18 | ||||
Other items (f) |
5 |
(2) |
8 |
3 | ||||
Adjusted EBITDA (non- |
|
$ 71 |
|
$ 111 |
(a) |
Represents non-cash share-based compensation. | |||||||
(b) |
Represents transaction costs associated with the Cristal Transaction which were recorded in "Selling, general and administrative expenses" in the unaudited Condensed Consolidated Statements of Operations. | |||||||
(c) |
Represents severance and other costs associated with the shutdown of our sodium chlorate plant, and other global restructuring efforts which was recorded in "Restructuring income (expense)" in the unaudited Condensed Consolidated Statements of Operations. | |||||||
(d) |
During 2016, we recognized | |||||||
(e) |
Represents foreign currency remeasurement which is included in "Other expense, net" in the unaudited Condensed Consolidated Statements of Operations. | |||||||
(f) |
Includes noncash pension and postretirement costs, severance expense, insurance settlement gain and other items included in "Selling, general and administrative expenses" and "Cost of goods sold" in the unaudited Condensed Consolidated Statements of Operations. | |||||||
(g) |
No income tax impact given full valuation allowance except for |
The following table reconciles income (loss) from operations, the comparable measure for segment reporting under | ||||||||
Three Months Ended |
Six Months Ended | |||||||
2017 |
2016 |
2017 |
2016 | |||||
TiO2 segment |
|
|
|
| ||||
Alkali segment |
23 |
12 |
42 |
33 | ||||
Corporate |
(29) |
(10) |
(64) |
(26) | ||||
Income (loss) from operations ( |
55 |
9 |
71 |
(22) | ||||
TiO2 segment |
44 |
43 |
88 |
83 | ||||
Alkali segment |
16 |
15 |
32 |
29 | ||||
Corporate |
2 |
2 |
3 |
3 | ||||
Depreciation, depletion and amortization expense |
62 |
60 |
123 |
115 | ||||
TiO2 segment |
18 |
7 |
27 |
25 | ||||
Alkali segment |
2 |
2 |
5 |
3 | ||||
Corporate |
3 |
(7) |
15 |
(10) | ||||
Other |
23 |
2 |
47 |
18 | ||||
TiO2 segment |
123 |
57 |
208 |
79 | ||||
Alkali segment |
41 |
29 |
79 |
65 | ||||
Corporate |
(24) |
(15) |
(46) |
(33) | ||||
Adjusted EBITDA (non- |
|
|
|
|
TRONOX LIMITED | |||||||||||||
REVISION OF PREVIOUSLY ISSUED INTERIM UNAUDITED CONDENSED | |||||||||||||
CONSOLIDATED FINANCIAL STATEMENTS | |||||||||||||
(Millions of | |||||||||||||
Unaudited Condensed Consolidated Statement of Operations |
|||||||||||||
Three Months Ended |
Six Months Ended | ||||||||||||
As Reported |
Adjustment |
Revised |
As Reported |
Adjustment |
Revised | ||||||||
Net sales |
$ 537 |
$ 1 |
$ 538 |
$ 1,012 |
$ 2 |
$ 1,014 | |||||||
Cost of goods sold |
480 |
(1) |
479 |
935 |
(1) |
934 | |||||||
Gross profit |
57 |
2 |
59 |
77 |
3 |
80 | |||||||
Selling, general and administrative expenses |
(50) |
(1) |
(51) |
(97) |
(4) |
(101) | |||||||
Income (loss) from operations |
8 |
1 |
9 |
(21) |
(1) |
(22) | |||||||
Other expense, net |
- |
(3) |
(3) |
(9) |
(3) |
(12) | |||||||
Loss before income taxes |
(38) |
(2) |
(40) |
(118) |
(4) |
(122) | |||||||
Net loss |
(48) |
(2) |
(50) |
(140) |
(4) |
(144) | |||||||
Net loss attributable to Tronox Limited |
(50) |
(2) |
(52) |
(141) |
(4) |
(145) | |||||||
Loss per share, basic and diluted |
(0.42) |
(0.02) |
(0.44) |
(1.21) |
(0.03) |
(1.24) | |||||||
Weighted average shares outstanding, basic and diluted (in thousands) |
116,184 |
116,184 |
116,184 |
116,052 |
116,052 |
116,052 | |||||||
Unaudited Condensed Consolidated Balance Sheet |
|||||||||||||
|
|||||||||||||
As Reported |
Adjustment |
Revised |
|||||||||||
Accounts receivable, net of allowance for |
$ 421 |
$ 3 |
$ 424 |
||||||||||
Total current assets |
1,253 |
3 |
1,256 |
||||||||||
Total assets |
4,950 |
3 |
4,953 |
||||||||||
Accrued liabilities |
174 |
11 |
185 |
||||||||||
Total current liabilities |
522 |
11 |
533 |
||||||||||
Total liabilities |
3,789 |
11 |
3,800 |
||||||||||
Accumulated deficit |
(13) |
(6) |
(19) |
||||||||||
Accumulated other comprehensive loss |
(495) |
(2) |
(497) |
||||||||||
|
1,017 |
(8) |
1,009 |
||||||||||
Total equity |
1,161 |
(8) |
1,153 |
||||||||||
Total liabilities and equity |
4,950 |
3 |
4,953 |
||||||||||
Unaudited Condensed Consolidated Statement of Cash Flows |
The corresponding amounts have been revised within the statement of cash flows for the six months ended |
View original content with multimedia:http://www.prnewswire.com/news-releases/tronox-reports-second-quarter-2017-financial-results-300501555.html
SOURCE
News Provided by Acquire Media