|
|
|
(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.
|
Exhibit
No.
|
Description
|
|
Press Release, dated February 25, 2020 reporting Tronox Holdings plc’s financial results for
the fourth quarter 2019.
|
||
104
|
Inline XBRL for the cover page of this Current Report on Form 8-K.
|
TRONOX HOLDINGS PLC
|
|||
Date: February 26, 2020
|
By:
|
/s/ Jeffrey Neuman
|
|
Name: Jeffrey Neuman
|
|||
Title: Senior Vice President, General Counsel and Secretary
|
• |
Revenue of $693 million
|
• |
Income from operations of $44 million; Adjusted EBITDA of $156 million; Adjusted EBITDA margin of 23 percent
(Non-GAAP)
|
• |
GAAP diluted EPS of $0.00; Adjusted diluted EPS of $0.14 (Non-GAAP)
|
• |
TiO2 local selling prices 1 percent lower benefiting from margin stability initiatives and sales volumes down within seasonally typical range, 9 percent, versus third quarter 2019
|
• |
Zircon continues to deliver strong profitability and margin enhancement despite softer market conditions as revenue
up 4 percent versus third quarter 2019 driven by 7 percent sales volume increase partially offset by 3 percent lower selling prices
|
• |
Revenue of $2,642 million
|
• |
Income from operations of $95 million; Adjusted EBITDA of $615 million within previously issued guidance range; Adjusted EBITDA margin of 23 percent (Non-GAAP)
|
• |
GAAP diluted loss per share from continuing operations of ($0.81); Adjusted diluted EPS of $0.47 above top-end of previously issued guidance range (Non-GAAP)
|
• |
Total acquisition synergies of $89 million achieved, exceeding increased guidance issued in the third quarter of $65 million by $24 million
|
• |
Free Cash Flow of $214 million exceeded top-end of previously issued guidance by $79 million (Non-GAAP)
|
• |
Returned $315 million to
shareholders through share repurchases and regular dividend payments
|
• |
$100 million discretionary debt repayment made in December 2019
|
• |
Raising total synergies targets for 2020 to $190 million, 2021 to $275 million, and 2022 to $325 million
|
• |
Full Year 2020 Outlook:
|
‒ |
Revenue of $3.0 – $3.3 billion
|
‒ |
Adjusted EBITDA of $700 – $800 million (Non-GAAP)
|
‒ |
Adjusted diluted EPS of $0.55 – $1.10 (Non-GAAP)
|
‒ |
Capex of $260 – $290 million
|
‒ |
Free Cash Flow over $200 million (Non-GAAP)
|
(Millions of dollars)
|
Q4 2019
|
Q4 2018
|
Y-o-Y %∆
|
|
Q3 2019
|
Q-o-Q %∆
|
|
|||||||||||||
Revenue
|
$
|
693
|
$
|
429
|
62
|
%
|
$
|
768
|
(10
|
%)
|
||||||||||
TiO2
|
544
|
252
|
116
|
%
|
603
|
(10
|
%)
|
|||||||||||||
Zircon
|
71
|
82
|
(13
|
%)
|
68
|
4
|
%
|
|||||||||||||
Feedstock and other products
|
78
|
95
|
(18
|
%)
|
97
|
(20
|
%)
|
|||||||||||||
Net (Loss) Income from Continuing Ops
|
$
|
(5
|
)
|
$
|
6
|
(183
|
%)
|
$
|
(12
|
)
|
58
|
%
|
||||||||
Adjusted EBITDA
|
$
|
156
|
$
|
120
|
30
|
%
|
$
|
184
|
(15
|
%)
|
||||||||||
Adjusted EBITDA Margin %
|
23
|
%
|
28
|
%
|
24
|
%
|
||||||||||||||
Y-o-Y %∆
|
Q-o-Q %∆
|
|||||||||||||||||||
Volume
|
Price
|
Volume
|
Price
|
|||||||||||||||||
TiO2
|
125
|
%
|
(5
|
%)
|
(9
|
%)
|
(1
|
%)
|
||||||||||||
Local Currency Basis
|
-
|
(4
|
%)
|
-
|
(1
|
%)
|
||||||||||||||
Zircon
|
(8
|
%)
|
(6
|
%)
|
7
|
%
|
(3
|
%)
|
(Millions of dollars)
|
Q4 2019
|
Q4 2018
|
Y-o-Y %∆
|
|
Q3 2019
|
Q-o-Q %∆
|
|
|||||||||||||
Revenue
|
$
|
693
|
$
|
728
|
(5
|
%)
|
$
|
768
|
(10
|
%)
|
||||||||||
TiO2
|
544
|
550
|
(1
|
%)
|
603
|
(10
|
%)
|
|||||||||||||
Zircon
|
71
|
107
|
(34
|
%)
|
68
|
4
|
%
|
|||||||||||||
Feedstock and other products
|
78
|
71
|
10
|
%
|
97
|
(20
|
%)
|
|||||||||||||
Net Income from Continuing Ops
|
$
|
1
|
$
|
62
|
(98
|
%)
|
$
|
26
|
(96
|
%)
|
||||||||||
Adjusted EBITDA
|
$
|
156
|
$
|
216
|
(28
|
%)
|
$
|
184
|
(15
|
%)
|
||||||||||
Adjusted EBITDA Margin %
|
23
|
%
|
30
|
%
|
24
|
%
|
||||||||||||||
Y-o-Y %∆
|
Q-o-Q %∆
|
|||||||||||||||||||
Volume
|
Price
|
Volume
|
Price
|
|||||||||||||||||
TiO2
|
3
|
%
|
(5
|
%)
|
(9
|
%)
|
(1
|
%)
|
||||||||||||
Local Currency Basis
|
-
|
(4
|
%)
|
-
|
(1
|
%)
|
||||||||||||||
Zircon
|
(29
|
%)
|
(6
|
%)
|
7
|
%
|
(3
|
%)
|
• |
Full Year 2020 Outlook:
|
• |
Revenue of $3.0 – $3.3 billion
|
• |
Adjusted EBITDA of $700 – $800 million (Non-GAAP)
|
• |
Adjusted diluted EPS of $0.55 – $1.10 (Non-GAAP)
|
• |
Capex of $260 – $290 million
|
• |
Free Cash Flow over $200 million (Non-GAAP)
|
• |
Revenue of $693 million, increased 62 percent from $429 million
|
• |
TiO2 sales of $544 million, including revenue from the acquired Cristal operations, increased 116 percent compared to $252 million
|
• |
Zircon sales of $71 million, including revenue from the acquired Cristal operations, decreased 13 percent from $82 million
|
• |
Feedstock and other products sales of $78 million, including revenue from the acquired Cristal operations, decreased 18 percent from $95 million
|
• |
Adjusted EBITDA of $156 million increased 30 percent compared to $120 million
|
• |
Revenue of $693 million was 5 percent lower than $728 million in the year-ago quarter
|
• |
TiO2 sales of $544 million were 1 percent lower compared to $550 million; sales volumes increased 3 percent; selling prices were 4 percent lower on a local currency basis and 5 percent
lower on a U.S. dollar basis
|
• |
Zircon sales of $71 million were 34 percent lower than $107 million in the year-ago quarter; sales volumes were 29 percent lower when compared to a very strong prior-year quarter of shipments, as
well as softer market conditions, primarily in China, with continued impacts felt by the trade war, environmental regulations and generally slower growth
|
• |
Feedstock and other products sales of $78 million increased 10 percent from $71 million on higher CP slag sales
|
• |
Revenue of $693 million decreased 10 percent compared to $768 million
|
• |
TiO2 sales of $544 million were 10 percent lower than $603 million; sales volumes declined within the seasonally typical range – 9 percent – and selling prices were 1 percent lower on
a local currency basis and on a U.S. dollar basis
|
• |
Zircon sales of $71 million increased 4 percent from $68 million, driven by a 7 percent increase in sales volumes benefiting from shipment timing, partially offset by 3 percent lower selling
prices
|
• |
Feedstock and other products sales of $78 million decreased 20 percent from $97 million driven by lower CP slag and pig iron sales volumes
|
Adjusted EBITDA of $156 million decreased 15 percent compared to $184 million, primarily due to seasonally normal lower sales volumes for TiO2, lower feedstock and other sales volumes,
higher production costs and the absence of integration margin benefits, partially offset by favorable foreign exchange on costs, primarily the South African rand and Australian dollar, and acquisition synergies
|
• |
As of December 31, 2019, liquidity was $648 million comprised of cash and cash equivalents of $302 million and $346 million available under revolving credit agreements
|
• |
In the fourth quarter 2019, capital expenditures were $58 million and depreciation, depletion and amortization expense was $75 million
|
• |
Tronox returned approximately $315
million to shareholders in 2019 through share repurchases and regular dividend payments
|
• |
Alembic Global Advisors Conference, Deer Valley, UT, February 27-28, 2020
|
• |
Reflect the ongoing business of Tronox Holdings plc in a manner that allows for meaningful period-to-period comparison and analysis of trends in its business, as they exclude income and expense
that are not reflective of ongoing operating results;
|
• |
Provide useful information to investors and others in understanding and evaluating the operating results and future prospects of Tronox Holdings plc;
|
• |
Provide an additional view of the operating performance of the Company by adding interest expense & income, income taxes, depreciation, depletion and amortization to the net income. Further
adjustments due to gain (loss) on extinguishment of debt, stock-based compensation charges, transaction costs associated with acquisitions, integration costs, purchase accounting adjustments, foreign currency re-measurements, impairments,
settlements of pension and postretirement plans, impacts of tax settlements on non-income related taxes, severance expense, and noncash pension and postretirement expense and accretion expense are made to exclude items that are either
non-cash or unusual in nature;
|
• |
Adjusted EBITDA is one of the primary measures management uses for planning and budgeting processes and to monitor and evaluate financial and operating results. Adjusted EBITDA is not a
recognized term under U.S. GAAP and does not purport to be an alternative to measures of our financial performance as determined in accordance with U.S. GAAP, such as net income (loss). Because other companies may calculate EBITDA and
Adjusted EBITDA differently than Tronox, EBITDA may not be, and Adjusted EBITDA as presented in this release is not, comparable to similarly titled measures reported by other companies; and
|
• |
We believe that the non-U.S. GAAP financial measure “Adjusted net income (loss) attributable to Tronox Holdings plc” and its presentation on a per share basis provide useful information about our
operating results to investors and securities analysts. We also believe that excluding the effects of these items from operating results allows management and investors to compare more easily the financial performance of our underlying
businesses from period to period.
|
Three months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
$
|
693
|
$
|
429
|
$
|
2,642
|
$
|
1,819
|
||||||||
Cost of goods sold
|
545
|
311
|
2,159
|
1,321
|
||||||||||||
Contract loss
|
-
|
-
|
19
|
-
|
||||||||||||
Gross profit
|
148
|
118
|
464
|
498
|
||||||||||||
Selling, general, and administrative expenses
|
95
|
50
|
347
|
267
|
||||||||||||
Restructuring
|
9
|
-
|
22
|
-
|
||||||||||||
Impairment loss
|
-
|
-
|
-
|
31
|
||||||||||||
Income from operations
|
44
|
68
|
95
|
200
|
||||||||||||
Interest expense
|
(47
|
)
|
(49
|
)
|
(201
|
)
|
(193
|
)
|
||||||||
Interest income
|
2
|
10
|
18
|
33
|
||||||||||||
Loss on extinguishment of debt
|
(1
|
)
|
-
|
(3
|
)
|
(30
|
)
|
|||||||||
Other income (expense), net
|
1
|
6
|
3
|
33
|
||||||||||||
(Loss) income from continuing operations before income taxes
|
(1
|
)
|
35
|
(88
|
)
|
43
|
||||||||||
Income tax (provision) benefit
|
(4
|
)
|
(29
|
)
|
(14
|
)
|
(13
|
)
|
||||||||
Net (loss) income from continuing operations
|
(5
|
)
|
6
|
(102
|
)
|
30
|
||||||||||
Net income from discontinued operations, net of tax
|
-
|
-
|
5
|
-
|
||||||||||||
Net (loss) income
|
(5
|
)
|
6
|
(97
|
)
|
30
|
||||||||||
Net (loss) income attributable to noncontrolling interest
|
(5
|
)
|
11
|
12
|
37
|
|||||||||||
Net income (loss) attributable to Tronox Holdings plc
|
$
|
-
|
$
|
(5
|
)
|
$
|
(109
|
)
|
$
|
(7
|
)
|
|||||
Net (loss) income per share, basic:
|
||||||||||||||||
Continuing operations
|
$
|
-
|
$
|
(0.05
|
)
|
$
|
(0.81
|
)
|
$
|
(0.06
|
)
|
|||||
Discontinued operations
|
$
|
-
|
$
|
-
|
$
|
0.03
|
$
|
-
|
||||||||
Net (loss) income per share, basic
|
$
|
-
|
$
|
(0.05
|
)
|
$
|
(0.78
|
)
|
$
|
(0.06
|
)
|
|||||
Net (loss) income per share, diluted:
|
||||||||||||||||
Continuing operations
|
$
|
-
|
$
|
(0.05
|
)
|
$
|
(0.81
|
)
|
$
|
(0.06
|
)
|
|||||
Discontinued operations
|
$
|
-
|
$
|
-
|
$
|
0.03
|
$
|
-
|
||||||||
Net (loss) income per share, diluted:
|
$
|
-
|
$
|
(0.05
|
)
|
$
|
(0.78
|
)
|
$
|
(0.06
|
)
|
|||||
Weighted average shares outstanding, basic (in thousands)
|
141,923
|
123,079
|
139,859
|
122,881
|
||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
141,923
|
123,079
|
139,859
|
122,881
|
||||||||||||
Other Operating Data:
|
||||||||||||||||
Capital expenditures
|
$
|
58
|
$
|
34
|
$
|
198
|
$
|
117
|
||||||||
Depreciation, depletion and amortization expense
|
$
|
75
|
$
|
50
|
$
|
280
|
$
|
195
|
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net (loss) income attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
-
|
$
|
(5
|
)
|
$
|
(109
|
)
|
$
|
(7
|
)
|
|||||
Net income from discontinued operations, net of tax (U.S. GAAP)
|
-
|
-
|
5
|
-
|
||||||||||||
Net (loss) income from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
-
|
$
|
(5
|
)
|
$
|
(114
|
)
|
$
|
(7
|
)
|
|||||
Inventory step-up (a)
|
2
|
-
|
91
|
-
|
||||||||||||
Impairment loss (b)
|
-
|
-
|
-
|
31
|
||||||||||||
Contract loss (c)
|
-
|
-
|
14
|
-
|
||||||||||||
Transaction costs (d)
|
3
|
7
|
32
|
66
|
||||||||||||
Restructuring (e)
|
8
|
-
|
21
|
-
|
||||||||||||
Integration costs (f)
|
8
|
-
|
16
|
-
|
||||||||||||
Tax valuation allowance reversal (g)
|
-
|
-
|
-
|
(48
|
)
|
|||||||||||
Loss on extinguishment of debt (h)
|
1
|
-
|
3
|
30
|
||||||||||||
Share-based compensation modification (i)
|
-
|
-
|
-
|
(6
|
)
|
|||||||||||
Pension settlement gain (j)
|
(1
|
)
|
-
|
(1
|
)
|
(3
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro (k)
|
(2
|
)
|
-
|
4
|
-
|
|||||||||||
Reversal of accrual related to tax settlement (l)
|
-
|
(11
|
)
|
-
|
(11
|
)
|
||||||||||
Income tax settlement for prior years (m)
|
-
|
11
|
-
|
11
|
||||||||||||
Income tax expense - deferred tax assets (n)
|
-
|
6
|
-
|
6
|
||||||||||||
Adjusted net income from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
|
$
|
19
|
$
|
8
|
$
|
66
|
$
|
69
|
||||||||
Diluted net income (loss) per share from continuing operations (U.S. GAAP)
|
$
|
-
|
$
|
(0.05
|
)
|
$
|
(0.81
|
)
|
$
|
(0.06
|
)
|
|||||
Inventory step-up, per share
|
0.01
|
-
|
0.65
|
-
|
||||||||||||
Impairment loss, per share
|
-
|
-
|
-
|
0.25
|
||||||||||||
Contract loss, per share
|
-
|
-
|
0.10
|
-
|
||||||||||||
Transaction costs, per share
|
0.02
|
0.06
|
0.23
|
0.53
|
||||||||||||
Restructuring, per share
|
0.06
|
-
|
0.15
|
-
|
||||||||||||
Integration costs, per share
|
0.06
|
-
|
0.11
|
-
|
||||||||||||
Tax valuation allowance reversal, per share
|
-
|
-
|
-
|
(0.38
|
)
|
|||||||||||
Loss on extinguishment of debt, per share
|
0.01
|
-
|
0.02
|
0.24
|
||||||||||||
Share-based compensation modification, per share
|
-
|
-
|
-
|
(0.05
|
)
|
|||||||||||
Pension settlement gain
|
(0.01
|
)
|
-
|
(0.01
|
)
|
(0.02
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro, per share
|
(0.01
|
)
|
-
|
0.03
|
-
|
|||||||||||
Reversal of accrual related to tax settlement, per share
|
-
|
(0.09
|
)
|
-
|
(0.09
|
)
|
||||||||||
Income tax settlement for prior years, per share
|
-
|
0.09
|
-
|
0.09
|
||||||||||||
Income tax expense - deferred tax assets, per share
|
-
|
0.05
|
-
|
0.05
|
||||||||||||
Diluted adjusted net (loss) income from continuing operations per share attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.14
|
$
|
0.06
|
$
|
0.47
|
$
|
0.56
|
||||||||
Weighted average shares outstanding, diluted (in thousands)
|
143,124
|
125,134
|
140,961
|
125,279
|
December 31,
2019
|
December 31,
2018
|
|||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
302
|
$
|
1,034
|
||||
Restricted cash
|
9
|
662
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
482
|
317
|
||||||
Inventories, net
|
1,131
|
479
|
||||||
Prepaid and other assets
|
166
|
50
|
||||||
Income taxes receivable
|
6
|
2
|
||||||
Total current assets
|
2,096
|
2,544
|
||||||
Noncurrent Assets
|
||||||||
Property, plant and equipment and mineral leaseholds, net
|
2,614
|
1,800
|
||||||
Intangible assets, net
|
208
|
176
|
||||||
Lease right of use assets, net
|
101
|
-
|
||||||
Deferred tax assets
|
110
|
37
|
||||||
Other long-term assets
|
162
|
85
|
||||||
Total assets
|
$
|
5,291
|
$
|
4,642
|
||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
356
|
$
|
133
|
|||||
Accrued liabilities
|
291
|
140
|
||||||
Short-term lease liabilities
|
38
|
-
|
||||||
Long-term debt due within one year
|
38
|
22
|
||||||
Income taxes payable
|
1
|
5
|
||||||
Total current liabilities
|
724
|
300
|
||||||
Noncurrent Liabilities
|
||||||||
Long-term debt, net
|
2,988
|
3,139
|
||||||
Pension and postretirement healthcare benefits
|
160
|
93
|
||||||
Asset retirement obligations
|
142
|
68
|
||||||
Environmental Liabilities
|
65
|
1
|
||||||
Long-term lease liabilities
|
62
|
-
|
||||||
Long-term deferred tax liabilities
|
184
|
163
|
||||||
Other long-term liabilities
|
50
|
16
|
||||||
Total liabilities
|
4,375
|
3,780
|
||||||
Commitments and Contingencies
|
||||||||
Shareholders’ Equity
|
||||||||
Tronox Holdings plc ordinary shares, par value $0.01 — 141,900,459 shares issued and outstanding at December 31, 2019 and 123,015,301 shares issued and 122,933,845 shares outstanding at
December 31, 2018
|
1
|
1
|
||||||
Capital in excess of par value
|
1,846
|
1,579
|
||||||
Accumulated deficit
|
(493
|
)
|
(357
|
)
|
||||
Accumulated other comprehensive loss
|
(606
|
)
|
(540
|
)
|
||||
Total Tronox Holdings plc shareholders' equity
|
748
|
683
|
||||||
Noncontrolling interest
|
168
|
179
|
||||||
Total equity
|
916
|
862
|
||||||
Total liabilities and equity
|
$
|
5,291
|
$
|
4,642
|
Year Ended December 31,
|
||||||||
2019
|
2018
|
|||||||
Cash Flows from Operating Activities:
|
||||||||
Net (loss) income
|
$
|
(97
|
)
|
$
|
30
|
|||
Net income from discontinued operations, net of tax
|
5
|
-
|
||||||
Net (loss) income from continuing operations
|
$
|
(102
|
)
|
$
|
30
|
|||
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities, continuing operations:
|
||||||||
Depreciation, depletion and amortization
|
280
|
195
|
||||||
Deferred income taxes
|
(9
|
)
|
(21
|
)
|
||||
Share-based compensation expense
|
32
|
21
|
||||||
Amortization of deferred debt issuance costs and discount on debt
|
8
|
11
|
||||||
Loss on extinguishment of debt
|
3
|
30
|
||||||
Contract loss
|
19
|
-
|
||||||
Impairment loss
|
-
|
31
|
||||||
Acquired inventory step-up recognized in earnings
|
98
|
-
|
||||||
Other non-cash affecting net (loss) income from continuing operations
|
25
|
(9
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Increase in accounts receivable, net
|
78
|
(11
|
)
|
|||||
Decrease (increase) in inventories, net
|
(59
|
)
|
(47
|
)
|
||||
Decrease (increase) in prepaid and other assets
|
(2
|
)
|
4
|
|||||
Increase (decrease) in accounts payable and accrued liabilities
|
89
|
(51
|
)
|
|||||
Net changes in income tax payables and receivables
|
(13
|
)
|
10
|
|||||
Changes in other non-current assets and liabilities
|
(35
|
)
|
(23
|
)
|
||||
Cash provided by operating activities- continuing operations
|
412
|
170
|
||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(198
|
)
|
(117
|
)
|
||||
Cristal Acquisition
|
(1,675
|
)
|
-
|
|||||
Proceeds from sale of Ashtabula
|
701
|
-
|
||||||
Insurance proceeds
|
10
|
-
|
||||||
Proceeds from sale of business
|
-
|
6
|
||||||
Loans
|
(25
|
)
|
(64
|
)
|
||||
Proceeds from sale of assets
|
2
|
1
|
||||||
Cash used in investing activities-continuing operations
|
(1,185
|
)
|
(174
|
)
|
||||
Cash Flows from Financing Activities:
|
||||||||
Repayments of long-term debt
|
(387
|
)
|
(606
|
)
|
||||
Proceeds from long-term debt
|
222
|
615
|
||||||
Repurchase of common stock
|
(288
|
)
|
-
|
|||||
Acquisition of noncontrolling interest
|
(148
|
)
|
-
|
|||||
Call premium paid
|
-
|
(22
|
)
|
|||||
Debt issuance costs
|
(4
|
)
|
(10
|
)
|
||||
Proceeds from the exercise of options and warrants
|
-
|
6
|
||||||
Dividends paid
|
(27
|
)
|
(23
|
)
|
||||
Restricted stock and performance-based shares settled in cash for withholding taxes
|
(6
|
)
|
(6
|
)
|
||||
Cash used in financing activities-continuing operations
|
(638
|
)
|
(46
|
)
|
||||
Discontinued Operations:
|
||||||||
Cash provided by operating activities
|
29
|
-
|
||||||
Cash used in investing activities
|
(1
|
)
|
-
|
|||||
Net cash flows provided by discontinued operations
|
28
|
-
|
||||||
Effects of exchange rate changes on cash, cash equivalents and restricted cash
|
(2
|
)
|
(23
|
)
|
||||
Net increase (decrease) in cash and cash equivalents and restricted cash
|
(1,385
|
)
|
(73
|
)
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
1,696
|
1,769
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
311
|
$
|
1,696
|
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net (loss) income (U.S. GAAP)
|
$
|
(5
|
)
|
$
|
6
|
$
|
(97
|
)
|
$
|
30
|
||||||
Income from discontinued operations, net of tax (see Note 2) (U.S. GAAP)
|
-
|
-
|
5
|
-
|
||||||||||||
Net (loss) income from continuing operations (U.S. GAAP)
|
$
|
(5
|
)
|
$
|
6
|
$
|
(102
|
)
|
$
|
30
|
||||||
Interest expense
|
47
|
49
|
201
|
193
|
||||||||||||
Interest income
|
(2
|
)
|
(10
|
)
|
(18
|
)
|
(33
|
)
|
||||||||
Income tax provision (benefit)
|
4
|
29
|
14
|
13
|
||||||||||||
Depreciation, depletion and amortization expense
|
75
|
50
|
280
|
195
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
119
|
124
|
375
|
398
|
||||||||||||
Inventory step-up (a)
|
3
|
98
|
-
|
|||||||||||||
Impairment loss (b)
|
-
|
-
|
-
|
31
|
||||||||||||
Contract Loss (c)
|
-
|
-
|
19
|
-
|
||||||||||||
Share based compensation (d)
|
8
|
5
|
32
|
21
|
||||||||||||
Transaction costs (e)
|
3
|
7
|
32
|
66
|
||||||||||||
Restructuring (f)
|
9
|
-
|
22
|
-
|
||||||||||||
Integration costs (g)
|
8
|
-
|
16
|
-
|
||||||||||||
Loss on extinguishment of debt (h)
|
1
|
-
|
3
|
30
|
||||||||||||
Foreign currency remeasurement (i)
|
(1
|
)
|
(6
|
)
|
(6
|
)
|
(28
|
)
|
||||||||
Pension settlement gain (j)
|
(1
|
)
|
-
|
(1
|
)
|
(3
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro (k)
|
(2
|
)
|
-
|
4
|
-
|
|||||||||||
Reversal of accrual related to tax settlements(l)
|
-
|
(11
|
)
|
-
|
(11
|
)
|
||||||||||
Other items (m)
|
9
|
1
|
21
|
9
|
||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
156
|
$
|
120
|
$
|
615
|
$
|
513
|
(a) |
Represents a pre-tax charge related to the recognition of a step-up in value of inventories as a result of purchase accounting.
|
(b) |
Represents a pre-tax charge for the impairment and loss on sale of the assets of our Tronox Electrolytic Operations which was recorded in “Impairment loss” in the Consolidated Statements of Operations.
|
(c) |
Represents a pre-tax charge for the estimated losses we expect to incur under the supply agreement with Venator which was recorded in "Contract loss" in our Consolidated Statements of Operations.
|
(d) |
Represents non-cash share-based compensation.
|
(e) |
Represents transaction costs associated with the Cristal Transaction which were recorded in “Selling, general and administrative expenses” in the Consolidated Statements of Operations.
|
(f) |
Represents amounts for employee-related costs, including severance .
|
(g) |
Represents integration costs associated with the Cristal Integration after the acquisition which were recorded in “Selling, general and administrative expenses” in the Consolidated Statements of
Operations.
|
(h) |
2019 amounts represent the loss in connection with the modification of the Wells Fargo Revolver and termination of the ABSA Revolver and a voluntary prepayment made on the Term Loan Facility. 2018 amounts
represent debt extinguishment costs associated with the issuance of our 2026 Senior Notes and redemption of our Senior Notes due 2022.
|
(i) |
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 Consolidated Statements of Operations. Prior to the first quarter of 2019, realized gains and losses associated with
third party receivables and liabilities had been included in Adjusted EBITDA. Commencing with 2019, we are now excluding these amounts from Adjusted EBITDA and prior period amounts have been revised for comparability purposes. The
exclusion of all of the realized and unrealized gains and losses is consistent with the reporting of Adjusted EBITDA we make to our lenders.
|
(j) |
2019 amount represents settlement gain related to the U.S. Pension Plan. 2018 amount represents settlement gain related to former U.S. postretirement medical plan.
|
(k) |
Represents the payment to Exxaro for capital gains tax on the disposal of its ordinary shares in Tronox Holdings plc included in and “Other income (expense), net” in the Consolidated Statements of
Operations.
|
(l) |
Represents the reversal of an accrual as a result of a tax settlement.
|
(m) |
Includes noncash pension and postretirement costs, accretion expense, severance expense and other items included in “Selling general and administrative expenses”, “Cost of goods sold” and "Other income
(expense), net" in the Consolidated Statements of Operations.
|
Consolidated
|
||||
Cash provided by operating activities, continuing operations
|
$
|
412
|
||
Capital expenditures
|
(198
|
)
|
||
Free cash flow (non-U.S. GAAP)
|
$
|
214
|
Pro forma amounts
|
Pro forma amounts
|
|||||||||||||||
Three months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
$
|
693
|
$
|
728
|
$
|
3,008
|
$
|
3,339
|
||||||||
Cost of goods sold
|
542
|
480
|
2,364
|
2,519
|
||||||||||||
Gross profit
|
151
|
248
|
644
|
820
|
||||||||||||
Selling, general, and administrative expenses
|
92
|
125
|
354
|
354
|
||||||||||||
Restructuring
|
9
|
1
|
22
|
1
|
||||||||||||
Impairment loss
|
-
|
-
|
-
|
31
|
||||||||||||
Income from operations
|
50
|
122
|
268
|
434
|
||||||||||||
Interest expense
|
(47
|
)
|
(54
|
)
|
(207
|
)
|
(211
|
)
|
||||||||
Interest income
|
2
|
4
|
12
|
13
|
||||||||||||
Loss on extinguishment of debt
|
(1
|
)
|
-
|
(3
|
)
|
(30
|
)
|
|||||||||
Other (expense) income, net
|
1
|
24
|
2
|
33
|
||||||||||||
Income from continuing operations before income taxes
|
5
|
96
|
72
|
239
|
||||||||||||
Income tax (provision) benefit
|
(4
|
)
|
(34
|
)
|
(31
|
)
|
(36
|
)
|
||||||||
Net income from continuing operations
|
1
|
62
|
41
|
203
|
||||||||||||
Net income attributable to noncontrolling interest
|
5
|
5
|
23
|
37
|
||||||||||||
Net income from continuing operations attributable to Tronox Holdings plc
|
$
|
(4
|
)
|
$
|
57
|
$
|
18
|
$
|
166
|
|||||||
Net income from continuing operations per share, diluted
|
$
|
(0.03
|
)
|
$
|
0.35
|
$
|
0.12
|
$
|
1.02
|
|||||||
Weighted average shares outstanding, diluted (in thousands)
|
141,923
|
162,714
|
151,153
|
162,859
|
Pro forma amounts
|
Pro forma amounts
|
|||||||||||||||
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net income from continuing operations attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
(4
|
)
|
$
|
57
|
$
|
18
|
$
|
166
|
|||||||
Inventory step-up
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
91
|
||||||||
Impairment loss
|
-
|
-
|
-
|
31
|
||||||||||||
Restructuring
|
8
|
-
|
21
|
-
|
||||||||||||
Integration costs
|
8
|
-
|
16
|
-
|
||||||||||||
Tax valuation allowance reversal
|
-
|
-
|
-
|
(48
|
)
|
|||||||||||
Loss on extinguishment of debt
|
1
|
-
|
3
|
30
|
||||||||||||
Share-based compensation modification
|
-
|
-
|
-
|
(6
|
)
|
|||||||||||
Settlement gain
|
(1
|
)
|
-
|
(1
|
)
|
(3
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro
|
(2
|
)
|
-
|
4
|
-
|
|||||||||||
Reversal of accrual related to tax settlement
|
-
|
(11
|
)
|
-
|
(11
|
)
|
||||||||||
Income tax settlement for prior years
|
-
|
11
|
-
|
11
|
||||||||||||
Income tax expense - deferred tax assets
|
-
|
6
|
-
|
6
|
||||||||||||
Adjusted net income from continuing operations attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
|
$
|
10
|
$
|
63
|
$
|
61
|
$
|
267
|
||||||||
Diluted net income per share from continuing operations (U.S. GAAP)
|
$
|
(0.03
|
)
|
$
|
0.35
|
$
|
0.12
|
$
|
1.02
|
|||||||
Inventory step-up, per share
|
-
|
-
|
-
|
0.56
|
||||||||||||
Impairment loss, per share
|
-
|
-
|
-
|
0.19
|
||||||||||||
Restructuring, per share
|
0.06
|
-
|
0.13
|
-
|
||||||||||||
Integration costs, per share
|
0.06
|
-
|
0.10
|
-
|
||||||||||||
Tax valuation allowance reversal, per share
|
-
|
-
|
-
|
(0.29
|
)
|
|||||||||||
Loss on extinguishment of debt, per share
|
0.01
|
-
|
0.02
|
0.18
|
||||||||||||
Share-based compensation modification, per share
|
-
|
-
|
-
|
(0.04
|
)
|
|||||||||||
Settlement gain
|
(0.01
|
)
|
-
|
(0.01
|
)
|
(0.02
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro, per share
|
(0.02
|
)
|
-
|
0.03
|
-
|
|||||||||||
Reversal of accrual related to tax settlement, per share
|
-
|
(0.07
|
)
|
-
|
(0.07
|
)
|
||||||||||
Income tax settlement for prior years, per share
|
-
|
0.07
|
-
|
0.07
|
||||||||||||
Income tax expense - deferred tax assets, per share
|
-
|
0.04
|
-
|
0.04
|
||||||||||||
Diluted adjusted net income from continuing operations per share attributable to Tronox Holdings plc (non-U.S. GAAP)
|
$
|
0.07
|
$
|
0.39
|
$
|
0.39
|
$
|
1.64
|
||||||||
Weighted average shares outstanding, diluted (in thousands)
|
143,124
|
162,714
|
151,153
|
162,859
|
Pro forma amounts
|
Pro forma amounts
|
|||||||||||||||
Three Months Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net income (loss) from continuing operations (U.S. GAAP)
|
$
|
1
|
$
|
62
|
$
|
41
|
$
|
203
|
||||||||
Interest expense
|
47
|
54
|
207
|
211
|
||||||||||||
Interest income
|
(2
|
)
|
(4
|
)
|
(12
|
)
|
(13
|
)
|
||||||||
Income tax provision
|
4
|
34
|
31
|
36
|
||||||||||||
Depreciation, depletion and amortization expense
|
75
|
81
|
323
|
334
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
125
|
227
|
590
|
771
|
||||||||||||
Inventory step-up
|
-
|
-
|
-
|
98
|
||||||||||||
Impairment loss
|
-
|
-
|
-
|
31
|
||||||||||||
Share based compensation
|
8
|
5
|
32
|
21
|
||||||||||||
Restructuring
|
9
|
-
|
22
|
-
|
||||||||||||
Integration costs
|
8
|
-
|
16
|
-
|
||||||||||||
Loss on extinguishment of debt
|
1
|
-
|
3
|
30
|
||||||||||||
Foreign currency remeasurement
|
(1
|
)
|
(3
|
)
|
(6
|
)
|
(21
|
)
|
||||||||
Settlement gain
|
(1
|
)
|
-
|
(1
|
)
|
(3
|
)
|
|||||||||
Charge for capital gains tax payment to Exxaro
|
(2
|
)
|
-
|
4
|
-
|
|||||||||||
Reversal of accrual related tax
|
-
|
(11
|
)
|
(11
|
)
|
|||||||||||
Other items
|
9
|
(2
|
)
|
21
|
6
|
|||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
156
|
$
|
216
|
$
|
681
|
$
|
922
|
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Document and Entity Information |
Feb. 25, 2020 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Feb. 25, 2020 |
Entity Registrant Name | TRONOX HOLDINGS PLC |
Entity Incorporation, State or Country Code | X0 |
Entity File Number | 001-35573 |
Entity Tax Identification Number | 98-1467236 |
Entity Address, Address Line One | 263 Tresser Boulevard, Suite 1100 |
Entity Address, City or Town | Stamford |
Entity Address, State or Province | CT |
Entity Address, Postal Zip Code | 06901 |
City Area Code | 203 |
Local Phone Number | 705-3800 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0001530804 |
Title of 12(b) Security | Ordinary shares, par value $0.01 per share |
Trading Symbol | TROX |
Security Exchange Name | NYSE |
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