|
|
|
|
|
(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
|
|
|
Earnings Release, dated May 1, 2024 reporting Tronox Holdings plc’s financial results for the first
quarter 2024.
|
||
| 104 |
Inline XBRL for the cover page of this Current Report on Form 8-K.
|
|
TRONOX HOLDINGS PLC
|
|||
|
Date: May 2, 2024
|
By:
|
/s/ Jeffrey N. Neuman
|
|
|
Name:
|
Jeffrey N. Neuman
|
||
|
Title:
|
Senior Vice President, General Counsel and Secretary
|
||

| • |
Produced revenue of $774 million, a 13% increase compared to the prior quarter, or a 9% increase compared to the prior year
|
| • |
Generated income from operations of $41 million, and a net loss of $9 million; adjusted net loss was $7 million (non-GAAP)
|
| • |
GAAP diluted loss per share of $0.06; Adjusted diluted loss per share was $0.05 (non-GAAP)
|
| • |
Delivered Adjusted EBITDA of $131 million, exceeding previously issued guidance of $100-120 million, and an Adjusted EBITDA
margin of 16.9%, slightly above the guided range (non-GAAP)
|
| • |
Invested $76 million in capital expenditures in the quarter
|
| • |
TiO2 volumes expected to increase 7-10% compared to Q1 2024
|
| • |
Zircon volumes expected to be relatively flat compared to Q1 2024
|
| • |
Adjusted EBITDA expected to be $160-180 million and Adjusted EBITDA margin to be in the range of 20%
|
|
($M unless otherwise noted)
|
Q1 2024
|
Q1 2023
|
Y-o-Y%∆
|
|
Q4 2023
|
Q-o-Q%∆
|
|
|||||||||||||||||
|
Revenue
|
$
|
774
|
$
|
708
|
9
|
%
|
$
|
686
|
13
|
%
|
||||||||||||||
|
TiO2
|
$
|
605
|
$
|
560
|
8
|
%
|
$
|
519
|
17
|
%
|
||||||||||||||
|
Zircon
|
$
|
88
|
$
|
72
|
22
|
%
|
$
|
57
|
54
|
%
|
||||||||||||||
|
Other products
|
$
|
81
|
$
|
76
|
7
|
%
|
$
|
110
|
(26
|
)%
|
||||||||||||||
|
Income from operations
|
$
|
41
|
$
|
62
|
(34
|
)%
|
$
|
8
|
413
|
%
|
||||||||||||||
|
Net (Loss) Income
|
$
|
(9
|
)
|
$
|
25
|
n/
|
m |
$
|
(56
|
)
|
n/
|
m
|
||||||||||||
|
Net (Loss) Income attributable to Tronox
|
$
|
(9
|
)
|
$
|
23
|
n/
|
m
|
$
|
(56
|
)
|
n/
|
m
|
||||||||||||
|
GAAP diluted (loss) earnings per share
|
$
|
(0.06
|
)
|
$
|
0.15
|
n/
|
m
|
$
|
(0.36
|
)
|
n/
|
m
|
||||||||||||
|
Adjusted diluted (loss) earnings per share
|
$
|
(0.05
|
)
|
$
|
0.15
|
n/
|
m
|
$
|
(0.38
|
)
|
n/
|
m
|
||||||||||||
|
Adjusted EBITDA
|
$
|
131
|
$
|
146
|
(10
|
)%
|
$
|
94
|
39
|
%
|
||||||||||||||
|
Adjusted EBITDA Margin %
|
16.9
|
%
|
20.6
|
%
|
(370) bps
|
13.7
|
%
|
320 bps
|
||||||||||||||||
|
Free cash flow
|
$
|
(105
|
)
|
$
|
(172
|
)
|
n/
|
m
|
$
|
51
|
n/
|
m
|
||||||||||||
|
|
||||||||||||||||||||||||
| Y-o-Y %∆ | Q-o-Q %∆ | |||||||||||||||||||||||
|
|
Volume
|
Price / Mix
|
FX
|
Volume
|
Price / Mix
|
FX
|
||||||||||||||||||
|
TiO2
|
18%
|
|
(10)%
|
|
0%
|
|
18%
|
|
(1)%
|
|
0%
|
|||||||||||||
|
Zircon
|
43%
|
|
(21)%
|
|
—
|
54%
|
|
0%
|
|
—
|
||||||||||||||
|
|
Three Months Ended March 31,
|
|||||||
|
|
2024
|
2023
|
||||||
|
Net sales
|
$
|
774
|
$
|
708
|
||||
|
Cost of goods sold
|
654
|
575
|
||||||
|
Gross profit
|
120
|
133
|
||||||
|
Selling, general and administrative expenses
|
79
|
71
|
||||||
|
Income from operations
|
41
|
62
|
||||||
|
Interest expense
|
(42
|
)
|
(33
|
)
|
||||
|
Interest income
|
4
|
3
|
||||||
|
Other (expense) income, net
|
(1
|
)
|
2
|
|||||
|
Income before income taxes
|
2
|
34
|
||||||
|
Income tax provision
|
(11
|
)
|
(9
|
)
|
||||
|
Net (loss) income
|
(9
|
)
|
25
|
|||||
|
Net income attributable to noncontrolling interest
|
—
|
2
|
||||||
|
Net (loss) income attributable to Tronox Holdings plc
|
$
|
(9
|
)
|
$
|
23
|
|||
|
|
||||||||
|
(Loss) Earnings per share:
|
||||||||
|
Basic
|
$
|
(0.06
|
)
|
$
|
0.15
|
|||
|
Diluted
|
$
|
(0.06
|
)
|
$
|
0.15
|
|||
|
|
||||||||
|
Weighted average shares outstanding, basic (in thousands)
|
157,331
|
155,175
|
||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
157,331
|
156,641
|
||||||
|
|
||||||||
|
Other Operating Data:
|
||||||||
|
Capital expenditures
|
76
|
93
|
||||||
|
Depreciation, depletion and amortization expense
|
72
|
71
|
||||||
|
|
Three Months Ended March 31,
|
|||||||
|
|
2024
|
2023
|
||||||
|
|
||||||||
|
Net (loss) income attributable to Tronox Holdings plc (U.S. GAAP)
|
$
|
(9
|
)
|
$
|
23
|
|||
|
|
||||||||
|
Other (a)
|
2
|
1
|
||||||
|
Adjusted net (loss) income attributable to Tronox Holdings plc (non-U.S. GAAP) (1)
|
$
|
(7
|
)
|
$
|
24
|
|||
|
|
||||||||
|
Diluted net (loss) income per share (U.S. GAAP)
|
$
|
(0.06
|
)
|
$
|
0.15
|
|||
|
|
||||||||
|
Other, per share
|
0.01
|
—
|
||||||
|
Diluted adjusted net (loss) income per share attributable to Tronox Holdings plc (non-U.S. GAAP) (2)
|
$
|
(0.05
|
)
|
$
|
0.15
|
|||
|
|
||||||||
|
Weighted average shares outstanding, diluted (in thousands)
|
157,331
|
156,641
|
||||||
|
|
March 31, 2024
|
December 31, 2023
|
||||||
|
ASSETS
|
||||||||
|
Current Assets
|
||||||||
|
Cash and cash equivalents
|
$
|
152
|
$
|
273
|
||||
|
Restricted cash
|
2
|
—
|
||||||
|
Accounts receivable (net of allowance for credit losses of $5 million and $3 million as of March 31, 2024 and December
31, 2023, respectively)
|
378
|
290
|
||||||
|
Inventories, net
|
1,403
|
1,421
|
||||||
|
Prepaid and other assets
|
214
|
141
|
||||||
|
Income taxes receivable
|
10
|
10
|
||||||
|
Total current assets
|
2,159
|
2,135
|
||||||
|
|
||||||||
|
Noncurrent Assets
|
||||||||
|
Property, plant and equipment, net
|
1,804
|
1,835
|
||||||
|
Mineral leaseholds, net
|
639
|
654
|
||||||
|
Intangible assets, net
|
243
|
243
|
||||||
|
Lease right of use assets, net
|
134
|
132
|
||||||
|
Deferred tax assets
|
915
|
917
|
||||||
|
Other long-term assets
|
128
|
218
|
||||||
|
Total assets
|
$
|
6,022
|
$
|
6,134
|
||||
|
|
||||||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Current Liabilities
|
||||||||
|
Accounts payable
|
$
|
398
|
$
|
461
|
||||
|
Accrued liabilities
|
240
|
230
|
||||||
|
Short-term lease liabilities
|
22
|
24
|
||||||
|
Short-term debt
|
4
|
11
|
||||||
|
Long-term debt due within one year
|
27
|
27
|
||||||
|
Total current liabilities
|
691
|
753
|
||||||
|
|
||||||||
|
Noncurrent Liabilities
|
||||||||
|
Long-term debt, net
|
2,780
|
2,786
|
||||||
|
Pension and postretirement healthcare benefits
|
103
|
104
|
||||||
|
Asset retirement obligations
|
176
|
172
|
||||||
|
Environmental liabilities
|
48
|
48
|
||||||
|
Long-term lease liabilities
|
105
|
103
|
||||||
|
Deferred tax liabilities
|
156
|
149
|
||||||
|
Other long-term liabilities
|
38
|
39
|
||||||
|
Total liabilities
|
4,097
|
4,154
|
||||||
|
|
||||||||
|
Commitments and Contingencies
|
||||||||
|
Shareholders’ Equity
|
||||||||
|
Tronox Holdings plc ordinary shares, par value $0.01 — 157,838,425 shares issued and outstanding at March 31, 2024 and
156,793,755 shares issued and outstanding at December 31, 2023
|
2
|
2
|
||||||
|
Capital in excess of par value
|
2,070
|
2,064
|
||||||
|
Retained earnings
|
655
|
684
|
||||||
|
Accumulated other comprehensive loss
|
(845
|
)
|
(814
|
)
|
||||
|
Total Tronox Holdings plc shareholders’ equity
|
1,882
|
1,936
|
||||||
|
Noncontrolling interest
|
43
|
44
|
||||||
|
Total equity
|
1,925
|
1,980
|
||||||
|
Total liabilities and equity
|
$
|
6,022
|
$
|
6,134
|
||||
|
|
Three Months Ended March 31,
|
|||||||
|
|
2024
|
2023
|
||||||
|
Cash Flows from Operating Activities:
|
||||||||
|
Net (loss) income
|
$
|
(9
|
)
|
$
|
25
|
|||
|
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
|
||||||||
|
Depreciation, depletion and amortization
|
72
|
71
|
||||||
|
Deferred income taxes
|
11
|
(1
|
)
|
|||||
|
Share-based compensation expense
|
6
|
6
|
||||||
|
Amortization of deferred debt issuance costs and discount on debt
|
2
|
2
|
||||||
|
Other non-cash items affecting net (loss) income
|
16
|
16
|
||||||
|
Changes in assets and liabilities:
|
||||||||
|
Increase in accounts receivable, net of allowance for credit losses
|
(94
|
)
|
(41
|
)
|
||||
|
Decrease (increase) in inventories, net
|
11
|
(83
|
)
|
|||||
|
Decrease in prepaid and other assets
|
16
|
2
|
||||||
|
Decrease in accounts payable and accrued liabilities
|
(49
|
)
|
(68
|
)
|
||||
|
Net changes in income tax payables and receivables
|
(3
|
)
|
2
|
|||||
|
Changes in other non-current assets and liabilities
|
(8
|
)
|
(10
|
)
|
||||
|
Cash used in operating activities
|
(29
|
)
|
(79
|
)
|
||||
|
|
||||||||
|
Cash Flows from Investing Activities:
|
||||||||
|
Capital expenditures
|
(76
|
)
|
(93
|
)
|
||||
|
Proceeds from sale of assets
|
-
|
2
|
||||||
|
Cash used in investing activities
|
(76
|
)
|
(91
|
)
|
||||
|
|
||||||||
|
Cash Flows from Financing Activities:
|
||||||||
|
Repayments of short-term debt
|
(6
|
)
|
(26
|
)
|
||||
|
Repayments of long-term debt
|
(5
|
)
|
(4
|
)
|
||||
|
Proceeds from short-term debt
|
-
|
152
|
||||||
|
Dividends paid
|
(1
|
)
|
(2
|
)
|
||||
|
Cash (used in) provided by financing activities
|
(12
|
)
|
120
|
|||||
|
|
||||||||
|
Effects of exchange rate changes on cash and cash equivalents and restricted cash
|
(2
|
)
|
1
|
|||||
|
|
||||||||
|
Net decrease in cash and cash equivalents and restricted cash
|
(119
|
)
|
(49
|
)
|
||||
|
Cash and cash equivalents and restricted cash at beginning of period
|
273
|
164
|
||||||
|
Cash and cash equivalents and restricted cash at end of period
|
$
|
154
|
$
|
115
|
||||
|
|
Three Months Ended March 31,
|
|||||||
|
|
2024
|
2023
|
||||||
|
|
||||||||
|
Net (loss) income (U.S. GAAP)
|
$
|
(9
|
)
|
$
|
25
|
|||
|
Interest expense
|
42
|
33
|
||||||
|
Interest income
|
(4
|
)
|
(3
|
)
|
||||
|
Income tax provision (benefit)
|
11
|
9
|
||||||
|
Depreciation, depletion and amortization expense
|
72
|
71
|
||||||
|
EBITDA (non-U.S. GAAP)
|
112
|
135
|
||||||
|
Share-based compensation (a)
|
6
|
6
|
||||||
|
Accretion expense and other adjustments to asset retirement obligations and environmental liabilities (b)
|
7
|
2
|
||||||
|
Accounts receivable securitization program (c)
|
3
|
2
|
||||||
|
Foreign currency remeasurement (d)
|
(2
|
)
|
(1
|
)
|
||||
|
Other items (e)
|
5
|
2
|
||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
131
|
$
|
146
|
||||
|
|
Three Months Ended March 31,
|
|||||||
|
|
2024
|
2023
|
||||||
|
Net sales
|
$
|
774
|
$
|
708
|
||||
|
Net (loss) income (U.S. GAAP)
|
$
|
(9
|
)
|
$
|
25
|
|||
|
Net (loss) income (U.S. GAAP) as a % of Net sales
|
(1.2
|
)%
|
3.5
|
%
|
||||
|
Adjusted EBITDA (non-U.S. GAAP) (see above) as a % of Net sales
|
16.9
|
%
|
20.6
|
%
|
||||
|
|
March 31, 2024
|
December 31, 2023
|
||||||
|
Long-term debt, net
|
$
|
2,780
|
$
|
2,786
|
||||
|
Short-term debt
|
4
|
11
|
||||||
|
Long-term debt due within one year
|
27
|
27
|
||||||
|
(Less) Cash and cash equivalents
|
(152
|
)
|
(273
|
)
|
||||
|
Net debt
|
$
|
2,659
|
$
|
2,551
|
||||
|
Trailing-twelve month Adjusted EBITDA (non-U.S. GAAP)
|
$
|
509
|
$
|
524
|
||||
|
Net debt to trailing-twelve month Adjusted EBITDA (non-U.S. GAAP) (see above)
|
5.2
|
x
|
4.9
|
x
|
||||
|
|
Three Months Ended
March 31, 2024
|
|||
|
Cash used in operating activities
|
$
|
(29
|
)
|
|
|
Capital expenditures
|
(76
|
)
|
||
|
Free cash flow (non-U.S. GAAP)
|
$
|
(105
|
)
|
|
|
|
Three Months Ended
|
Trailing Twelve Month
Adjusted EBITDA
|
||||||||||||||||||
|
|
June 30, 2023
|
September 30, 2023
|
December 31, 2023
|
March 31, 2024
|
||||||||||||||||
|
|
||||||||||||||||||||
|
Net (loss) income (U.S. GAAP)
|
$
|
(269
|
)
|
$
|
(14
|
)
|
$
|
(56
|
)
|
$
|
(9
|
)
|
$
|
(348
|
)
|
|||||
|
Interest expense
|
38
|
42
|
45
|
42
|
167
|
|||||||||||||||
|
Interest income
|
(3
|
)
|
(4
|
)
|
(8
|
)
|
(4
|
)
|
(19
|
)
|
||||||||||
|
Income tax provision
|
322
|
8
|
24
|
11
|
365
|
|||||||||||||||
|
Depreciation, depletion and amortization expense
|
68
|
67
|
69
|
72
|
276
|
|||||||||||||||
|
EBITDA (non-U.S. GAAP)
|
156
|
99
|
74
|
112
|
441
|
|||||||||||||||
|
Share-based compensation (a)
|
5
|
4
|
6
|
6
|
21
|
|||||||||||||||
|
Foreign currency remeasurement (b)
|
(5
|
)
|
(1
|
)
|
1
|
(2
|
)
|
(7
|
)
|
|||||||||||
|
Accretion expense and other adjustments to asset retirement obligations and environmental liabilities (c)
|
6
|
6
|
8
|
7
|
27
|
|||||||||||||||
|
Accounts receivable securitization program (d)
|
3
|
4
|
3
|
3
|
13
|
|||||||||||||||
|
Other items (e)
|
3
|
4
|
2
|
5
|
14
|
|||||||||||||||
|
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
168
|
$
|
116
|
$
|
94
|
$
|
131
|
$
|
509
|
||||||||||