|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
Laporte Road, Stallingborough
|
||
|
|
Grimsby, North East Lincolnshire, DN40 2PR, UK
|
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of each class
|
Trading Symbol(s)
|
Name of exchange on which registered
|
|
|
|
Item 2.02.
|
Results of Operations and Financial Condition.
|
|
Item 9.01.
|
Financial Statements and Exhibits.
|
|
(d)
|
Exhibits.
|
|
Exhibit No.
|
Description
|
|
|
Press Release, dated October 28, 2020 reporting Tronox Holdings plc’s financial results for the third
quarter 2020.
|
||
|
104
|
Inline XBRL for the cover page of this Current Report on Form 8-K.
|
|
TRONOX HOLDINGS PLC
|
|||
|
Date: October 29, 2020
|
By:
|
/s/ Jeffrey N. Neuman
|
|
|
Name:
|
Jeffrey N. Neuman
|
||
|
Title:
|
Senior Vice President, General Counsel and Secretary
|
||
| • |
Revenue of $675 million increased 17 percent sequentially on improved market demand
|
| • |
Income from operations of $49 million; Net income of $902 million primarily due to the reversal of a portion of U.S. valuation allowance relating to net operating loss carryforwards
resulting in a non-cash benefit of $895 million
|
| • |
Adjusted EBITDA of $148 million; Adjusted EBITDA margin of 22 percent (Non-GAAP), reflecting the impact of adjusting our operations to accommodate the effects of the pandemic,
partially offset by cost reductions and increased acquisition synergies
|
| • |
Total year-to-date acquisition synergies of $183 million, with $134 million reflected in Adjusted EBITDA (Non-GAAP); Raising total synergy target for FY 2020 to $235 million, with
$185 million to be reflected in Adjusted EBITDA (Non-GAAP)
|
| • |
GAAP diluted income per share of $6.18; Adjusted diluted EPS of $0.05 (Non-GAAP)
|
| • |
TiO2 sales volumes increased 16 percent sequentially, driven by improving market demand throughout the quarter, with level selling prices consistent with expectations
|
| • |
Zircon sales volumes declined 15 percent sequentially as a result of shipment timing between quarters, with a 2 percent decline in selling prices driven largely by product mix
|
| • |
Feedstock and other products sales increased 73 percent sequentially, primarily due to increased pig iron and CP slag sales mandated by the FTC consent order
|
| • |
Strong sales trends reflect a favorable deviation from typical fourth quarter seasonality; anticipate this will result in TiO2 sales volumes at or above Q3 2020 and Q4
2019
|
| • |
Q4 zircon sales volume to be the strongest quarter of the year; expected to increase in the range of 25 percent sequentially
|
| • |
Adjusted EBITDA outlook of $155 - $170 million and Adjusted EBITDA margin to recover to first half of 2020 levels
|
|
(Millions of dollars)
|
Q3 2020
|
Q3 2019
|
Y-o-Y% ∆
|
Q2 2020
|
Q-o-Q% ∆
|
|||||||||||||||
|
Revenue
|
$
|
675
|
$
|
768
|
(12
|
%)
|
$
|
578
|
17
|
%
|
||||||||||
|
TiO2
|
543
|
603
|
(10
|
%)
|
466
|
17
|
%
|
|||||||||||||
|
Zircon
|
56
|
68
|
(18
|
%)
|
68
|
(18
|
%)
|
|||||||||||||
|
Feedstock and other products
|
76
|
97
|
(22
|
%)
|
44
|
73
|
%
|
|||||||||||||
|
Net Income (Loss) from Continuing Ops
|
902
|
26
|
n/
|
m
|
(4
|
)
|
n/
|
m
|
||||||||||||
|
Adjusted EBITDA
|
148
|
184
|
(20
|
%)
|
142
|
4
|
%
|
|||||||||||||
|
Adjusted EBITDA Margin %
|
22
|
%
|
24
|
%
|
(2) pts
|
25
|
%
|
(3) pts
|
||||||||||||
|
Y-o-Y% ∆
|
Q-o-Q% ∆
|
|||||||||||||||||||
|
Volume
|
Price
|
Volume
|
Price
|
|||||||||||||||||
|
TiO2
|
(9
|
%)
|
(1
|
%)
|
16
|
%
|
0
|
%
|
||||||||||||
|
Local Currency Basis
|
n/a
|
(3
|
%)
|
n/a
|
(1
|
%)
|
||||||||||||||
|
Zircon
|
(7
|
%)
|
(11
|
%)
|
(15
|
%)
|
(2
|
%)
|
||||||||||||
| • |
Revenue of $675 million decreased 12 percent compared to $768 million, driven largely by impacts from COVID-19
|
| • |
TiO2 sales of $543 million decreased 10 percent compared to $603 million; sales volumes declined 9 percent versus the year ago quarter due to impacts from COVID-19;
selling prices declined 1 percent on a U.S. dollar basis and 3 percent on a local currency basis year over year
|
| • |
Zircon sales of $56 million decreased 18 percent from $68 million; selling prices were 11 percent lower and sales volumes declined 7 percent due to softer market conditions,
primarily in China
|
| • |
Feedstock and other products sales of $76 million decreased 22 percent from $97 million due to lower pig iron, and mandated CP slag volumes due to COVID-19
|
| • |
Adjusted EBITDA of $148 million decreased 20 percent compared to $184 million, driven primarily by lower sales due to COVID-19, increased production costs due to adjusting our
operations to accommodate the effects of the pandemic, pigment plant idle facility charges and LCM charges, and absence of deferred margin benefit; this was partially offset by synergies, cost reductions, improved Australia mining costs,
primarily driven by the legacy Cristal Gingko mining operations following production downtime in Q3 2019, and FX tailwinds
|
| • |
Selling, general and administrative (“SG&A”) expenses were $89 million compared to $82 million
|
| • |
Interest expense of $48 million decreased from $51 million in the year-ago quarter
|
| • |
Revenue of $675 million increased 17 percent compared to $578 million, primarily due to improving TiO2 volumes throughout the quarter
|
| • |
TiO2 sales of $543
million increased 17 percent compared to $466 million; sales volumes increased 16 percent driven by continued strength in North America, and improved market demand in South America and Europe; selling prices remained level sequentially on
a U.S. dollar basis and declined 1 percent on a local currency basis
|
| • |
Zircon sales of $56 million decreased 18 percent from $68 million, driven by an 15 percent decline in sales volumes that was a result of shipment timing between quarters; selling
prices declined 2 percent sequentially due to product mix
|
| • |
Feedstock and other products sales of $76 million increased 73 percent compared to $44 million, as sales volumes of pig iron improved and mandated CP slag sales resumed in the
quarter
|
| • |
Adjusted EBITDA of $148 million increased 4 percent compared to $142 million, driven primarily by improved TiO2 and feedstock and other sales volumes, improved operating costs in South Africa and Australia, and synergies; this was partially offset by increased
production costs due to adjusting our operations to accommodate the effects of the pandemic, pigment plant idle facility charges and LCM charges, and FX headwinds
|
| • |
SG&A expenses were $89 million compared to $80 million
|
| • |
Interest expense was $48 million compared to $47 million
|
| • |
As of September 30, 2020, debt was $3.5 billion and debt, net of cash and cash equivalents was $2.8 billion
|
| • |
Liquidity was $1.1 billion as of September 30, 2020, comprised of cash and cash equivalents of $722 million and $376 million available under revolving credit agreements
|
| • |
Restricted cash of $27 million includes $18 million held in escrow related to the TTI acquisition
|
| • |
In the third quarter 2020, capital expenditures were $47 million and depreciation, depletion and amortization expense was $76 million
|
| • |
Free Cash Flow for the quarter was $37 million
|
| • |
BofA Securities 2020 Leveraged Finance Virtual Conference, November 30, 2020
|
| • |
Citi 2020 Basic Materials Virtual Conference, December 1 - December 2, 2020
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net sales
|
$
|
675
|
$
|
768
|
$
|
1,975
|
$
|
1,949
|
||||||||
|
Cost of goods sold
|
536
|
635
|
1,532
|
1,614
|
||||||||||||
|
Contract loss
|
-
|
-
|
-
|
19
|
||||||||||||
|
Gross profit
|
139
|
133
|
443
|
316
|
||||||||||||
|
Selling, general and administrative expenses
|
89
|
82
|
263
|
252
|
||||||||||||
|
Restructuring
|
1
|
3
|
3
|
13
|
||||||||||||
|
Income from operations
|
49
|
48
|
177
|
51
|
||||||||||||
|
Interest expense
|
(48
|
)
|
(51
|
)
|
(140
|
)
|
(154
|
)
|
||||||||
|
Interest income
|
1
|
4
|
6
|
16
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||
|
Other income (expense), net
|
7
|
(1
|
)
|
19
|
2
|
|||||||||||
|
Income (loss) from continuing operations before income taxes
|
9
|
-
|
62
|
(87
|
)
|
|||||||||||
|
Income tax benefit (provision)
|
893
|
(12
|
)
|
876
|
(10
|
)
|
||||||||||
|
Net income (loss) from continuing operations
|
902
|
(12
|
)
|
938
|
(97
|
)
|
||||||||||
|
Net income from discontinued operations, net of tax
|
-
|
6
|
-
|
5
|
||||||||||||
|
Net income (loss)
|
902
|
(6
|
)
|
938
|
(92
|
)
|
||||||||||
|
Net income attributable to noncontrolling interest
|
6
|
7
|
14
|
17
|
||||||||||||
|
Net income (loss) attributable to Tronox Holdings plc
|
$
|
896
|
$
|
(13
|
)
|
$
|
924
|
$
|
(109
|
)
|
||||||
|
Net income (loss) per share, basic:
|
||||||||||||||||
|
Continuing operations
|
$
|
6.24
|
$
|
(0.13
|
)
|
$
|
6.45
|
$
|
(0.82
|
)
|
||||||
|
Discontinued operations
|
$
|
-
|
$
|
0.04
|
$
|
-
|
$
|
0.04
|
||||||||
|
Net income (loss) per share, basic
|
$
|
6.24
|
$
|
(0.09
|
)
|
$
|
6.45
|
$
|
(0.78
|
)
|
||||||
|
Net income (loss) per share, diluted:
|
||||||||||||||||
|
Continuing operations
|
$
|
6.18
|
$
|
(0.13
|
)
|
$
|
6.42
|
$
|
(0.82
|
)
|
||||||
|
Discontinued operations
|
$
|
-
|
$
|
0.04
|
$
|
-
|
$
|
0.04
|
||||||||
|
Net income (loss) per share, diluted
|
$
|
6.18
|
$
|
(0.09
|
)
|
$
|
6.42
|
$
|
(0.78
|
)
|
||||||
|
Weighted average shares outstanding, basic (in thousands)
|
143,579
|
142,278
|
143,245
|
139,158
|
||||||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
145,067
|
142,278
|
143,969
|
139,158
|
||||||||||||
|
Other Operating Data:
|
||||||||||||||||
|
Capital expenditures
|
47
|
59
|
129
|
140
|
||||||||||||
|
Depreciation, depletion and amortization expense
|
76
|
74
|
219
|
205
|
||||||||||||
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net income (loss) attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
896
|
$
|
(13
|
)
|
$
|
924
|
$
|
(109
|
)
|
||||||
|
Net income from discontinued operations, net of tax (U.S. GAAP)
|
-
|
6
|
-
|
5
|
||||||||||||
|
Net income (loss) from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
896
|
$
|
(19
|
)
|
$
|
924
|
$
|
(114
|
)
|
||||||
|
Inventory step-up (a)
|
-
|
38
|
-
|
88
|
||||||||||||
|
Contract loss (b)
|
-
|
-
|
-
|
14
|
||||||||||||
|
Transaction costs (c)
|
6
|
-
|
10
|
29
|
||||||||||||
|
Restructuring (d)
|
1
|
3
|
2
|
13
|
||||||||||||
|
Integration costs (e)
|
1
|
4
|
9
|
8
|
||||||||||||
|
Loss on extinguishment of debt (f)
|
-
|
-
|
-
|
2
|
||||||||||||
|
Reversal of U.S. tax valuation allowance (g)
|
(895
|
)
|
-
|
(895
|
)
|
-
|
||||||||||
|
Other (h)
|
(2
|
)
|
-
|
(2
|
)
|
-
|
||||||||||
|
Tax valuation allowance (i)
|
-
|
-
|
(2
|
)
|
-
|
|||||||||||
|
Charge for capital gains tax payment to Exxaro (j)
|
-
|
4
|
-
|
6
|
||||||||||||
|
Adjusted net income from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
|
$
|
7
|
$
|
30
|
$
|
46
|
$
|
46
|
||||||||
|
Diluted net income (loss) per share from continuing operations (U.S. GAAP)
|
$
|
6.18
|
$
|
(0.13
|
)
|
$
|
6.42
|
$
|
(0.82
|
)
|
||||||
|
Inventory step-up, per share
|
-
|
0.26
|
-
|
0.63
|
||||||||||||
|
Contract loss, per share
|
-
|
-
|
-
|
0.10
|
||||||||||||
|
Transaction costs, per share
|
0.04
|
-
|
0.07
|
0.21
|
||||||||||||
|
Restructuring, per share
|
0.01
|
0.02
|
0.01
|
0.09
|
||||||||||||
|
Integration costs, per share
|
0.01
|
0.03
|
0.06
|
0.06
|
||||||||||||
|
Loss on extinguishment of debt, per share
|
-
|
-
|
-
|
0.02
|
||||||||||||
|
Reversal of tax valuation allowance, per share
|
(6.17
|
)
|
-
|
(6.22
|
)
|
-
|
||||||||||
|
Other, per share
|
(0.02
|
)
|
-
|
(0.01
|
)
|
-
|
||||||||||
|
Tax valuation allowance, per share
|
-
|
-
|
(0.01
|
)
|
-
|
|||||||||||
|
Charge for capital gains tax payment to Exxaro, per share
|
-
|
0.03
|
-
|
0.04
|
||||||||||||
|
Diluted adjusted net income per share from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.05
|
$
|
0.21
|
$
|
0.32
|
$
|
0.33
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
145,067
|
142,984
|
143,969
|
140,288
|
||||||||||||
|
September 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 September 30, 2020 and December 31, 2019, respectively)
|
484
|
482
|
||||||
|
Inventories, net
|
1,176
|
1,131
|
||||||
|
Prepaid and other assets
|
174
|
143
|
||||||
|
Income taxes receivable
|
3
|
6
|
||||||
|
Total current assets
|
2,586
|
2,073
|
||||||
|
Noncurrent Assets
|
||||||||
|
Property, plant and equipment, net
|
1,651
|
1,762
|
||||||
|
Mineral leaseholds, net
|
776
|
852
|
||||||
|
Intangible assets, net
|
203
|
208
|
||||||
|
Lease right of use assets, net
|
86
|
101
|
||||||
|
Deferred tax assets
|
997
|
110
|
||||||
|
Other long-term assets
|
177
|
162
|
||||||
|
Total assets
|
$
|
6,476
|
$
|
5,268
|
||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$
|
306
|
$
|
342
|
||||
|
Accrued liabilities
|
364
|
283
|
||||||
|
Short-term lease liabilities
|
38
|
38
|
||||||
|
Short-term debt
|
6
|
-
|
||||||
|
Long-term debt due within one year
|
48
|
38
|
||||||
|
Income taxes payable
|
2
|
1
|
||||||
|
Total current liabilities
|
764
|
702
|
||||||
|
Noncurrent Liabilities
|
||||||||
|
Long-term debt, net
|
3,424
|
2,988
|
||||||
|
Pension and postretirement healthcare benefits
|
138
|
160
|
||||||
|
Asset retirement obligations
|
152
|
142
|
||||||
|
Environmental liabilities
|
70
|
65
|
||||||
|
Long-term lease liabilities
|
46
|
62
|
||||||
|
Deferred tax liabilities
|
152
|
184
|
||||||
|
Other long-term liabilities
|
42
|
49
|
||||||
|
Total liabilities
|
4,788
|
4,352
|
||||||
|
Commitments and Contingencies
|
-
|
-
|
||||||
|
Shareholders’ Equity
|
||||||||
|
Tronox Holdings plc ordinary shares, par value $0.01 — 143,530,571 shares issued and outstanding at September 30, 2020 and 141,900,459 shares issued and
outstanding at December 31, 2019
|
1
|
1
|
||||||
|
Capital in excess of par value
|
1,862
|
1,846
|
||||||
|
Retained earnings (accumulated deficit)
|
400
|
(493
|
)
|
|||||
|
Accumulated other comprehensive loss
|
(712
|
)
|
(606
|
)
|
||||
|
Total Tronox Holdings plc shareholders’ equity
|
1,551
|
748
|
||||||
|
Noncontrolling interest
|
137
|
168
|
||||||
|
Total equity
|
1,688
|
916
|
||||||
|
Total liabilities and equity
|
$
|
6,476
|
$
|
5,268
|
||||
|
Nine Months Ended September 30,
|
||||||||
|
2020
|
2019
|
|||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net income (loss)
|
$
|
938
|
$
|
(92
|
)
|
|||
|
Net income from discontinued operations, net of tax
|
-
|
5
|
||||||
|
Net income (loss) from continuing operations
|
$
|
938
|
$
|
(97
|
)
|
|||
|
Adjustments to reconcile net income (loss) from continuing operations to net cash provided by operating activities, continuing operations:
|
||||||||
|
Depreciation, depletion and amortization
|
219
|
205
|
||||||
|
Reversal of U.S. valuation allowance
|
(895
|
)
|
-
|
|||||
|
Deferred income taxes - other
|
9
|
(7
|
)
|
|||||
|
Share-based compensation expense
|
19
|
24
|
||||||
|
Amortization of deferred debt issuance costs and discount on debt
|
7
|
6
|
||||||
|
Loss on extinguishment of debt
|
-
|
2
|
||||||
|
Contract loss
|
-
|
19
|
||||||
|
Acquired inventory step-up recognized in earnings
|
-
|
95
|
||||||
|
Other non-cash items affecting net (loss) income from continuing operations
|
44
|
20
|
||||||
|
Changes in assets and liabilities:
|
||||||||
|
(Increase) decrease in accounts receivable, net of allowance for credit losses
|
(13
|
)
|
(34
|
)
|
||||
|
(Increase) decrease in inventories, net
|
(100
|
)
|
14
|
|||||
|
(Increase) decrease in prepaid and other assets
|
(38
|
)
|
2
|
|||||
|
Increase in accounts payable and accrued liabilities
|
18
|
6
|
||||||
|
Net changes in income tax payables and receivables
|
-
|
(5
|
)
|
|||||
|
Changes in other non-current assets and liabilities
|
(52
|
)
|
(13
|
)
|
||||
|
Cash provided by operating activities - continuing operations
|
156
|
237
|
||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(129
|
)
|
(140
|
)
|
||||
|
Cristal Acquisition
|
-
|
(1,675
|
)
|
|||||
|
Proceeds from sale of Ashtabula
|
-
|
708
|
||||||
|
Insurance proceeds
|
1
|
10
|
||||||
|
Loans
|
(24
|
)
|
(25
|
)
|
||||
|
Proceeds from sale of assets
|
1
|
2
|
||||||
|
Cash used in investing activities - continuing operations
|
(151
|
)
|
(1,120
|
)
|
||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Repayments of short-term debt
|
(7
|
)
|
-
|
|||||
|
Repayments of long-term debt
|
(23
|
)
|
(272
|
)
|
||||
|
Proceeds from long-term debt
|
500
|
222
|
||||||
|
Proceeds from short-term debt
|
13
|
-
|
||||||
|
Repurchase of common stock
|
-
|
(288
|
)
|
|||||
|
Acquisition of noncontrolling interest
|
-
|
(148
|
)
|
|||||
|
Debt issuance costs
|
(10
|
)
|
(4
|
)
|
||||
|
Dividends paid
|
(30
|
)
|
(21
|
)
|
||||
|
Restricted stock and performance-based shares settled in cash for withholding taxes
|
(3
|
)
|
(6
|
)
|
||||
|
Cash provided by (used in) financing activities - continuing operations
|
440
|
(517
|
)
|
|||||
|
Discontinued Operations:
|
||||||||
|
Cash used in operating activities
|
-
|
29
|
||||||
|
Cash used in investing activities
|
-
|
(1
|
)
|
|||||
|
Net cash flows used by discontinued operations
|
-
|
28
|
||||||
|
Effects of exchange rate changes on cash and cash equivalents and restricted cash
|
(7
|
)
|
(8
|
)
|
||||
|
Net increase (decrease) in cash, cash equivalents and restricted cash
|
438
|
(1,380
|
)
|
|||||
|
Cash, cash equivalents and restricted cash at beginning of period
|
311
|
1,696
|
||||||
|
Cash, cash equivalents and restricted cash at end of period
|
$
|
749
|
$
|
316
|
||||
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net income (loss) (U.S. GAAP)
|
$
|
902
|
$
|
(6
|
)
|
$
|
938
|
$
|
(92
|
)
|
||||||
|
Income from discontinued operations, net of tax (U.S. GAAP)
|
-
|
6
|
-
|
5
|
||||||||||||
|
Net income (loss) from continuing operations (U.S. GAAP)
|
902
|
(12
|
)
|
938
|
(97
|
)
|
||||||||||
|
Interest expense
|
48
|
51
|
140
|
154
|
||||||||||||
|
Interest income
|
(1
|
)
|
(4
|
)
|
(6
|
)
|
(16
|
)
|
||||||||
|
Income tax provision (benefit)
|
(893
|
)
|
12
|
(876
|
)
|
10
|
||||||||||
|
Depreciation, depletion and amortization expense
|
76
|
74
|
219
|
205
|
||||||||||||
|
EBITDA (non-U.S. GAAP)
|
132
|
121
|
415
|
256
|
||||||||||||
|
Inventory step-up (a)
|
-
|
40
|
-
|
95
|
||||||||||||
|
Contract loss (b)
|
-
|
-
|
-
|
19
|
||||||||||||
|
Share-based compensation (c)
|
8
|
9
|
19
|
24
|
||||||||||||
|
Transaction costs (d)
|
6
|
-
|
10
|
29
|
||||||||||||
|
Restructuring (e)
|
1
|
3
|
3
|
13
|
||||||||||||
|
Integration costs (f)
|
1
|
4
|
10
|
8
|
||||||||||||
|
Loss on extinguishment of debt (g)
|
-
|
-
|
-
|
2
|
||||||||||||
|
Foreign currency remeasurement (h)
|
(2
|
)
|
(1
|
)
|
(10
|
)
|
(5
|
)
|
||||||||
|
Charge for capital gains tax payment to Exxaro (i)
|
-
|
4
|
-
|
6
|
||||||||||||
|
Other items (j)
|
2
|
4
|
17
|
12
|
||||||||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
148
|
$
|
184
|
$
|
464
|
$
|
459
|
||||||||
|
Consolidated
|
||||
|
Cash provided by operating activities - continuing operations
|
$
|
156
|
||
|
Capital expenditures
|
(129
|
)
|
||
|
Free cash flow (non-U.S. GAAP)
|
$
|
27
|
||
|
Proforma amounts
|
Proforma amounts
|
|||||||||||||||
|
September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net sales
|
$
|
675
|
$
|
768
|
$
|
1,975
|
$
|
2,315
|
||||||||
|
Cost of goods sold
|
536
|
595
|
1,532
|
1,822
|
||||||||||||
|
Gross profit
|
139
|
173
|
443
|
493
|
||||||||||||
|
Selling, general and administrative expenses
|
89
|
82
|
263
|
262
|
||||||||||||
|
Restructuring
|
1
|
3
|
3
|
13
|
||||||||||||
|
Income from operations
|
49
|
88
|
177
|
218
|
||||||||||||
|
Interest expense
|
(48
|
)
|
(51
|
)
|
(140
|
)
|
(160
|
)
|
||||||||
|
Interest income
|
1
|
4
|
6
|
10
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
(2
|
)
|
|||||||||||
|
Other expense, net
|
7
|
(1
|
)
|
19
|
1
|
|||||||||||
|
Income from continuing operations before income taxes
|
9
|
40
|
62
|
67
|
||||||||||||
|
Income tax benefit (provision)
|
893
|
(14
|
)
|
876
|
(27
|
)
|
||||||||||
|
Net income from continuing operations
|
902
|
26
|
938
|
40
|
||||||||||||
|
Net income attributable to noncontrolling interest
|
6
|
7
|
14
|
18
|
||||||||||||
|
Net income from continuing operations attributable to Tronox Holdings plc
|
$
|
896
|
$
|
19
|
$
|
924
|
$
|
22
|
||||||||
|
Net income from continuing operations per share, diluted
|
$
|
6.18
|
$
|
0.13
|
$
|
6.42
|
$
|
0.14
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
145,067
|
142,984
|
143,969
|
153,916
|
||||||||||||
|
Proforma amounts
|
Proforma amounts
|
|||||||||||||||
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net income from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
896
|
$
|
19
|
$
|
924
|
$
|
22
|
||||||||
|
Transaction costs
|
6
|
-
|
10
|
-
|
||||||||||||
|
Restructuring
|
1
|
3
|
2
|
13
|
||||||||||||
|
Integration costs
|
1
|
4
|
9
|
8
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
2
|
||||||||||||
|
Reversal of tax valuation allowance
|
(895
|
)
|
-
|
(895
|
)
|
-
|
||||||||||
|
Other
|
(2
|
)
|
-
|
(2
|
)
|
-
|
||||||||||
|
Tax valuation allowance
|
-
|
-
|
(2
|
)
|
-
|
|||||||||||
|
Charge for capital gains tax payment to Exxaro
|
-
|
4
|
-
|
6
|
||||||||||||
|
Adjusted net income attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
7
|
$
|
30
|
$
|
46
|
$
|
51
|
||||||||
|
Diluted net income per share from continuing operations (U.S. GAAP)
|
$
|
6.18
|
$
|
0.13
|
$
|
6.42
|
$
|
0.14
|
||||||||
|
Transaction costs, per share
|
0.04
|
-
|
0.07
|
-
|
||||||||||||
|
Restructuring, per share
|
0.01
|
0.02
|
0.01
|
0.09
|
||||||||||||
|
Integration costs, per share
|
0.01
|
0.03
|
0.06
|
0.05
|
||||||||||||
|
Loss on extinguishment of debt, per share
|
-
|
-
|
-
|
0.01
|
||||||||||||
|
Reversal of tax valuation allowance, per share
|
(6.17
|
)
|
-
|
(6.22
|
)
|
-
|
||||||||||
|
Other, per share
|
(0.02
|
)
|
-
|
(0.01
|
)
|
-
|
||||||||||
|
Tax valuation allowance, per share
|
-
|
-
|
(0.01
|
)
|
-
|
|||||||||||
|
Charge for capital gains tax payment to Exxaro, per share
|
-
|
0.03
|
-
|
0.04
|
||||||||||||
|
Diluted adjusted net income per share attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.05
|
$
|
0.21
|
$
|
0.32
|
$
|
0.33
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
145,067
|
142,984
|
143,969
|
153,916
|
||||||||||||
|
Pro Forma
Three Months Ended September 30, |
Pro Forma
Nine Months Ended September 30, |
|||||||||||||||
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||
|
Net income from continuing operations (U.S. GAAP)
|
$
|
902
|
$
|
26
|
$
|
938
|
$
|
40
|
||||||||
|
Interest expense
|
48
|
51
|
140
|
160
|
||||||||||||
|
Interest income
|
(1
|
)
|
(4
|
)
|
(6
|
)
|
(10
|
)
|
||||||||
|
Income tax provision (benefit)
|
(893
|
)
|
14
|
(876
|
)
|
27
|
||||||||||
|
Depreciation, depletion and amortization expense
|
76
|
74
|
219
|
248
|
||||||||||||
|
EBITDA (non-U.S. GAAP)
|
132
|
161
|
415
|
465
|
||||||||||||
|
Share-based compensation
|
8
|
9
|
19
|
24
|
||||||||||||
|
Transaction costs
|
6
|
-
|
10
|
-
|
||||||||||||
|
Restructuring
|
1
|
3
|
3
|
13
|
||||||||||||
|
Integration costs
|
1
|
4
|
10
|
8
|
||||||||||||
|
Loss on extinguishment of debt
|
-
|
-
|
-
|
2
|
||||||||||||
|
Foreign currency remeasurement
|
(2
|
)
|
(1
|
)
|
(10
|
)
|
(5
|
)
|
||||||||
|
Charge for capital gains tax payment to Exxaro
|
-
|
4
|
-
|
6
|
||||||||||||
|
Other items
|
2
|
4
|
17
|
12
|
||||||||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
148
|
$
|
184
|
$
|
464
|
$
|
525
|
||||||||