TRONOX LTD STAMFORD, Conn., Aug. 4, 2015 /PRNewswire/ -- Tronox Limited (NYSE:TROX) today reported second quarter 2015 revenue of $617 million compared to $490 million in the second quarter 2014 and $385 million in the first quarter 2015. Adjusted EBITDA was $116 million, excluding $49 million of net lower of cost or market (LCM) charges, compared to $103 million, excluding net non-cash LCM credits of $5 million, in the year-ago quarter and $73 million, excluding net non-cash LCM charges of $9 million, in the prior quarter. Adjusted net loss attributable to Tronox Limited in the second quarter was $81 million, or $0.70 per diluted share, versus breakeven net income, or $0.00 per diluted share, in the year-ago quarter and a loss of $51 million, or $0.44 per diluted share, in the first quarter 2015.
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Tom Casey, chairman and CEO of Tronox, said: "In our first quarter of operating two vertically integrated businesses, we delivered a high level of adjusted EBITDA and generated significant cash. Our two operating businesses, TiO2 and Alkali, generated adjusted EBITDA of $135 million in the quarter excluding net non-cash LCM charges. With that level of adjusted EBITDA, and after capital expenditures of $61 million, our businesses delivered $74 million of cash to the company. This quarter's performance demonstrated our cash generation strength even under difficult market conditions in our TiO2 business. We are increasing our cash generation across the company, including reducing our operating costs and working capital. In the second quarter, we signed a contract with a non-pigment company to sell high-quality ilmenite that we had previously stockpiled in a transaction that will produce cash of approximately $35-37 million over the next six quarters. This is but one example of our heightened focus on cash generation."
Casey continued: "Our TiO2 segment generated adjusted EBITDA of $85 million and delivered cash of $28 million in the second quarter, despite 5 percent lower average selling prices for pigment products compared to the first quarter. We have taken the appropriate steps in our pigment and feedstock operations to reduce production volumes to reduce inventory without affecting sales volumes, as demand will be met from reduced production levels and finished goods inventories. Our Alkali business continued its strong operating performance in its first quarter within Tronox, generating $50 million of adjusted EBITDA and delivering $46 million of cash. Alkali continues to operate in a sold-out mode driven by strong export demand growth and a continued recovery in the domestic market. The benefits of having Alkali in our portfolio are many, but its high cash generation is particularly valuable in this current period of depressed TiO2 market conditions."
Casey concluded: "With the cash generation strength of our operating businesses, coupled with our cash generation initiatives sourced from operating cost and working capital reductions, as well as capital expenditure reductions, we expect to generate positive free cash flow in 2016 after capital expenditures, interest expense and dividend payments. We intend to focus this cash surplus on deleveraging and providing for future growth of the company."
Titanium Dioxide (TiO2)
TiO2 segment revenue of $409 million was 17 percent lower than $490 million in the prior-year quarter, primarily the result of lower pigment products sales. Sales of pigment products declined 19 percent, as sales volumes declined 4 percent and average selling prices declined 16 percent (11 percent on a local currency basis). Sales volumes for pigment products rebounded in EMEA, declined in Asia-Pacific and softened modestly in North America versus the year-ago quarter. Sales of titanium feedstocks and co-products, including zircon and rutile, declined 15 percent versus the year-ago quarter. Selling prices increased in the 4-6 percent range for titanium feedstocks. Sales volumes increased for CP titanium slag and rutile products declined. Zircon sales volumes remained at normal levels but were lower compared to very strong sales volumes in the year-ago quarter and selling prices declined modestly.
Compared sequentially, TiO2 segment revenue of $409 million increased 6 percent versus $385 million in the first quarter, driven primarily by a 13 percent sales volumes increase for pigment products. Pigment products revenue increased 8 percent, as the 13 percent gain in sales volumes was partially offset by 5 percent lower average selling prices (3 percent on a local currency basis). Sales volume gains for pigment products were realized in North America, EMEA and Asia-Pacific. Finished pigment products inventory at the end of the second quarter was modestly above normal seasonal levels. Sales of titanium feedstocks and co-products, including zircon, increased 2 percent versus the prior quarter. Sales volumes for titanium feedstocks were lower. Selling prices for CP titanium slag increased 3 percent and rutile products remained level. Zircon sales increased 12 percent, driven by 18 percent higher sales volumes, partially offset by 5 percent lower selling prices.
We believe that because of oversupply conditions in the TiO2 market, average selling prices are at levels that are producing inadequate returns. As a result, we have reduced production volumes at both our pigment and feedstock operations. Production has been suspended at one of six processing lines at our Hamilton pigment plant and one of four processing lines at our Kwinana pigment plant. Together, these processing line curtailments represent approximately 15 percent of total pigment production. We have also suspended operation at one slag smelter at our KZN Sands facility, which has reduced our slag production capacity by approximately 12 percent. We expect sales volumes for both pigment products and titanium feedstocks to be unaffected, as we intend to meet demand from reduced production levels and finished goods inventories. If demand exceeds our forecasts over the balance of 2015, we have the operating flexibility to quickly increase production.
TiO2 segment adjusted EBITDA of $85 million, excluding $49 million of net lower of cost or market (LCM) charges, compares to adjusted EBITDA of $120 million, excluding net non-cash credits of $5 million, in the prior-year quarter and $94 million, excluding net non-cash LCM charges of $9 million, in the prior quarter. TiO2 segment operating loss of $41 million compares to operating income of $30 million in the year-ago quarter and $9 million in the prior quarter.
Capital expenditures of $57 million in the quarter included $31 million related to the Fairbreeze mine project that will produce feedstock to supply the slag furnaces at our KZN Sands operations and provide new zircon and rutile co-products. The Fairbreeze mine is expected to be commissioned as planned by the end of 2015 and be fully operational in 2016. In 2016, production of ilmenite feedstock and co-products zircon and natural rutile will ramp to full production by mid-year. Total capital expenditures related to the Fairbreeze mine from project commencement through 2016 are estimated to be approximately $225 million. Approximately $125 million was spent from commencement through the second quarter 2015.
With adjusted EBITDA of $85 million excluding net non-cash LCM charges and capital expenditures of $57 million, TiO2 delivered cash of approximately $28 million in the second quarter. We are enhancing cash generation in our TiO2 business in multiple ways - by focusing on significant working capital reductions, driving operating cost reductions and reducing capital expenditures. Since a substantial portion of our operating costs are incurred in currencies that have depreciated relative to the U.S. dollar, we believe our cost structure has improved in U.S. dollar terms more than that of other producers that incur a larger portion of their operating costs in U.S. dollars.
Alkali
Alkali segment revenue of $208 million increased 8 percent compared to $194 million in the year-ago quarter on a pro forma basis, as sales volumes gained 4 percent and average selling prices increased 3 percent. Export sales led the volume growth, supported by increased demand in the domestic market. Higher selling prices were realized in both export and domestic markets. Compared sequentially to the first quarter on a pro forma basis, Alkali revenue increased 7 percent, as sales volumes increased 8 percent, again led by export volume growth and supported by increased momentum in the domestic market, while average selling prices declined 1 percent as a result of customer and regional mix. Alkali continues to operate in a sold-out mode driven by strong export demand growth and a continued recovery in the domestic market.
Alkali adjusted EBITDA of $50 million increased 14 percent compared to pro forma adjusted EBITDA of $44 million in the prior-year quarter, driven by higher sales volumes and selling prices coupled with lower energy costs. Compared sequentially, adjusted EBITDA increased 22 percent from pro forma adjusted EBITDA of $41 million in the prior quarter. Alkali segment operating income of $25 million compares to operating income of $31 million in the year-ago quarter and $28 million in the prior quarter, both on a pro forma basis. Capital expenditures in the second quarter were $4 million. With adjusted EBITDA of $50 million and capital expenditures of $4 million, Alkali delivered cash of $46 million in the second quarter.
Corporate
Corporate adjusted EBITDA was ($19) million in the second quarter versus ($17) million in the year-ago quarter and ($21) million in the prior quarter. The Corporate loss from operations was $34 million, including one-time expenses of approximately $21 million related to the Alkali acquisition, compared to $15 million in the prior-year quarter and $18 million in the prior quarter.
Consolidated
Selling, general and administrative expenses for the company in the second quarter were $72 million, including one-time expenses of approximately $21 million related to the Alkali acquisition and on-going expenses of approximately $7 million related to Alkali business operations. This compares to $45 million in the prior-year quarter and $44 million in the prior quarter.
Interest and debt expense of $52 million increased from $33 million in the year-ago quarter primarily due to a higher debt level and a bridge loan financing expense of $8 million related to the Alkali acquisition. On June 30, 2015, gross consolidated debt was $3,134 million, and debt, net of cash, was $2,929 million. For the quarter, capital expenditures were $61 million and depreciation, depletion and amortization was $75 million.
Second Quarter 2015 Webcast Conference Call
Wednesday, August 5, 2015, at 8:30 a.m. ET (New York). The live call is open to the public via Internet broadcast and telephone
Internet Broadcast: http://www.tronox.com/
Dial-in telephone numbers:
U.S. / Canada: +1.877.831.3840
International: +1.253.237.1184
Conference ID: 94623862
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 and telephone beginning on Wednesday, August 5, 2015 at 11:30 a.m. ET (New York), until August 9, 2015.
Internet Replay: www.tronox.com
Dial-in telephone numbers:
U.S. / Canada: +1.855.859.2056
International: +1.404.537.3406
Conference ID: 94623862
Upcoming Conferences
During the third quarter a member of management is scheduled to present at the following conferences:
-- UBS Chemicals Conference, New York, September 9, 2015
-- RBC Capital Markets Global Industrial Conference, Las Vegas, September
10, 2015
-- Credit Suisse Basic Materials Conference, New York, September 17, 2015
Accompanying materials will be available at http://investor.tronox.com
About Tronox
Tronox Limited is a global leader in the mining, production, and marketing of inorganic minerals and chemicals. The company operates two vertically integrated businesses: Tronox Titanium Dioxide (TiO2) and Tronox Alkali. For more information, visit www.tronox.com
Segment Information
The reportable segments presented herein represent the operating segments for which separate financial information is available and we utilize on a regular basis to assess performance, align strategies and allocate resources. Prior to the Alkali acquisition, we had two operating and reportable segments, Mineral Sands and Pigment, based on the way the management team was organized and we assessed performance, aligned strategies and allocated resources. As a result of the increased interdependency between the Mineral Sands and Pigment businesses and related organizational changes, we determined that it was better to review the Mineral Sands and Pigment businesses, along with our electrolytic business, as a combined one, TiO2, and to assess performance, align strategies and allocate resources. Following the Alkali acquisition, we restructured our organization to reflect two integrated businesses, TiO2 and the acquired business, Alkali, as our two operating and reportable segments with functions that report to two senior executives of the company, who report directly to our CEO.
Our TiO2 operating segment includes:
-- exploration, mining and beneficiation of mineral sands deposits
-- heavy mineral production of titanium feedstock (including chloride slag,
slag fines and rutile), pig iron and zircon
-- production and marketing of TiO2
-- electrolytic manganese dioxide manufacturing and marketing
Our Alkali operating segment includes:
-- exploration, mining and beneficiation of trona ore
-- production and marketing of natural soda ash and its derivatives: sodium
bicarbonate, sodium sesquicarbonate and caustic soda
Segment performance is evaluated based on segment operating profit (loss), which represents the results of segment operations before unallocated costs, such as general corporate expenses not identified to a specific segment, interest expense, other income (expense) and income tax expense or benefit.
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 based on our growth strategies and anticipated trends in our business. 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 or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These and other risk factors are discussed in the company's filings with the Securities and Exchange Commission (SEC), including those under the heading entitled "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2014.
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-U.S. GAAP Financial Information
To provide investors and others with additional information regarding Tronox Limited's operating results, we have disclosed in this press release certain non-U.S. GAAP financial measures, including Adjusted EBITDA and adjusted net loss attributable to Tronox. 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 than non-U.S. GAAP financial measures presented by other companies. The non-U.S. GAAP financial measures are provided to enhance the user's overall understanding of the company's operating performance. 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 are 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.
Management believes these non-U.S. GAAP financial measures:
-- Reflect Tronox Limited's ongoing business 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 Tronox Limited's operating results and future prospects in
the same manner as management and in comparing financial results across
accounting periods;
-- Provide additional view of the operating performance of the company by
adding interest expenses, taxes, depreciation, depletion and
amortization to the net income. Further adjustments due to purchase
accounting and stock-based compensation charges attempt to exclude items
that are either non-cash or unusual in nature;
-- Assist investors to assess the company's compliance with financial
covenants under its debt instruments;
-- 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 loss
attributable to Tronox Limited" 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.
Media Contact: Bud Grebey
Direct: +1.203.705.3721
Investor Contact: Brennen Arndt
Direct: +1.203.705.3722
TRONOX LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (US GAAP)
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended June Six Months Ended June
30, 30,
------------------------ ----------------------
2015 2014 2015 2014
---- ---- ---- ----
Net sales $617 $490 $1,002 $908
Cost of goods
sold 593 430 943 823
Gross profit 24 60 59 85
Selling,
general, and
administrative
expenses (72) (45) (116) (91)
Restructuring
expense (2) - (2) -
Income (loss) from operations (50) 15 (59) (6)
Interest and
debt expense,
net (52) (33) (86) (67)
Loss on
extinguishment
of debt - (8) - (8)
Other income
(expense),
net (5) 3 (1) 3
Loss before income taxes (107) (23) (146) (78)
Income tax
benefit
(provision) (11) 25 (18) 26
Net income (loss) (118) 2 (164) (52)
Net income
attributable
to
noncontrolling
interest 1 2 4 6
Net loss attributable to Tronox Limited $(119) $ - $(168) $(58)
===== =========== ===== ====
Loss per share, basic and diluted $(1.03) $ - $(1.45) $(0.51)
====== =========== ====== ======
Weighted average shares outstanding, basic and
diluted (in thousands) 115,569 113,962 115,472 113,770
======= ======= ======= =======
Other Operating Data:
---------------------
Capital
expenditures $61 $43 $93 $67
Depreciation,
depletion and
amortization
expense $75 $84 $140 $157
-------------- --- --- ---- ----
TRONOX LIMITED
SCHEDULE OF ADJUSTED EARNINGS (NON-U.S. GAAP)*
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended June Six Months Ended June
30, 30,
----------------------- ----------------------
2015 2014 2015 2014
---- ---- ---- ----
Net sales $617 $490 $1,002 $908
Cost of goods sold 584 430 934 823
Gross profit 33 60 68 85
Selling, general, and
administrative expenses (53) (45) (99) (91)
Adjusted income (loss) from operations (20) 15 (31) (6)
Interest and debt
expense, net (44) (33) (78) (67)
Loss on extinguishment of
debt - (8) - (8)
Other income, net (5) 3 (1) 3
Adjusted income (loss) before income taxes (69) (23) (110) (78)
Income tax benefit
(provision) (11) 25 (18) 26
Adjusted net income (loss) (80) 2 (128) (52)
Net income attributable
to noncontrolling
interest 1 2 4 6
Adjusted net income (loss) attributable to Tronox Limited (Non-
U.S. GAAP)*
$(81) $ - $(132) $(58)
Diluted adjusted loss per share, attributable to Tronox Limited
$(0.70) $ - $(1.14) $(0.51)
Weighted average shares outstanding, diluted (in thousands) 115,569 113,962 115,472 113,770
======= ======= ======= =======
* We believe that the non-U.S.
GAAP financial measure
"Adjusted net income (loss)
attributable to Tronox Limited"
and its presentation on a per
share basis provides useful
information about our operating
results to investors and
securities analysts. Adjusted
earnings excludes the effects
related to the acquisitions of
the mineral sands and Alkali
businesses including certain
tax related adjustments. 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. Additionally,
the above schedule is presented
in a format which reflects the
manner in which we manage our
business, and is not in
accordance with U.S. GAAP.
TRONOX LIMITED
RECONCILIATION OF NON-U.S. GAAP FINANCIAL MEASURES
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
RECONCILIATION OF NET LOSS
ATTRIBUTABLE TO TRONOX LIMITED (U.S. GAAP)
TO ADJUSTED NET LOSS
ATTRIBUTABLE TO TRONOX LIMITED (NON-U.S. GAAP)
Three Months Ended June Six Months Ended June
30, 30,
----------------------- ----------------------
2015 2014 2015 2014
---- ---- ---- ----
Net loss attributable to
Tronox Limited (U.S. GAAP) $(119) $ - $(168) $(58)
Acquisition related expense
(a) 36 - 34 -
Restructuring expense (b) 2 - 2 -
--- --- --- ---
Adjusted net income (loss)
attributable to Tronox
Limited (Non-U.S. GAAP) $(81) $ - $(132) $(58)
==== =========== ===== ====
Diluted loss per share
attributable to Tronox
Limited (U.S. GAAP) $(1.03) $ - $(1.45) $(0.51)
Acquisition related
expense, per diluted share 0.31 - 0.29 -
Restructuring expense, per
diluted share 0.02 - 0.02 -
Diluted adjusted income
(loss) per share
attributable to Tronox
Limited (Non-U.S. GAAP) $(0.70) $ - $(1.14) $(0.51)
====== =========== ====== ======
Weighted average shares
outstanding, diluted (in
thousands) 115,569 113,962 115,472 113,770
======= ======= ======= =======
(a) One-time non-operating
items and the effect of
acquisitions.
(b) Represents severance costs
associated with the shutdown
of our sodium chlorate plant.
TRONOX LIMITED
SEGMENT INFORMATION
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended Six Months Ended June
June 30, 30,
------------------- ---------------------
2015 2014 2015 2014
---- ---- ---- ----
Sales
TiO2 segment $409 $490 $794 $908
Alkali segment 208 - 208 -
--- --- --- ---
Net sales $617 $490 $1,002 $908
==== ==== ====== ====
Income (loss) from operations
TiO2 segment $(41) $30 $(32) $26
Alkali segment 25 - 25 -
Corporate (34) (15) (52) (32)
--- --- --- ---
Income (loss) from operations (50) 15 (59) (6)
Interest and debt expense, net (52) (33) (86) (67)
Loss on extinguishment of debt - (8) - (8)
Other income (expense), net (5) 3 (1) 3
Loss before income taxes (107) (23) (146) (78)
Income tax benefit (provision) (11) 25 (18) 26
--- --- --- ---
Net income (loss) (118) 2 (164) (52)
Net income attributable to
noncontrolling interest 1 2 4 6
--- --- --- ---
Net income (loss) attributable to
Tronox Limited $(119) $ - $(168) $(58)
===== ======= ===== ====
TRONOX LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
June 30, December 31
ASSETS 2015 2014
---- ----
Current Assets
Cash and cash
equivalents $205 $1,276
Restricted cash 5 3
Accounts
receivable, net of
allowance for
doubtful accounts 472 277
Inventories, net 780 770
Prepaid and other
assets 60 42
Deferred tax assets 10 13
Total current
assets 1,532 2,381
Noncurrent Assets
Property, plant and
equipment, net 1,967 1,227
Mineral leaseholds,
net 1,736 1,058
Intangible assets,
net 260 272
Inventories, net 14 57
Long-term deferred
tax assets 8 9
Other long-term
assets 75 61
Total assets $5,592 $5,065
====== ======
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $203 $160
Accrued liabilities 156 147
Short-term debt 150 -
Long-term debt due
within one year 17 18
Income taxes
payable 26 32
Deferred tax
liabilities 8 9
Total current
liabilities 560 366
Noncurrent Liabilities
Long-term debt 2,967 2,375
Pension and
postretirement
healthcare
benefits 168 172
Asset retirement
obligations 82 85
Long-term deferred
tax liabilities 190 204
Other long-term
liabilities 96 75
Total
liabilities 4,063 3,277
----- -----
Shareholders' Equity
Tronox Limited
Class A ordinary
shares, par value
$0.01 -65,531,044
shares issued and
64,483,113 shares
outstanding at
June 30, 2015 and
65,152,145 shares
issued and
63,968,616 shares
outstanding at
December 31, 2014 1 1
Tronox Limited
Class B ordinary
shares, par value
$0.01 -51,154,280
shares issued and
outstanding at
June 30, 2015 and
December 31, 2014. - -
Capital in excess
of par value 1,490 1,476
Retained earnings 302 529
Accumulated other
comprehensive loss (432) (396)
Total
shareholders'
equity 1,361 1,610
Noncontrolling
interest 168 178
Total equity 1,529 1,788
Total
liabilities
and equity $5,592 $5,065
====== ======
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions of U.S. dollars)
Six Months Ended June
30,
2015 2014
---- ----
Cash Flows from Operating Activities:
Net loss $(164) $(52)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation,
depletion and
amortization 140 157
Deferred income taxes (2) (45)
Share-based
compensation expense 13 11
Amortization of
deferred debt
issuance costs and
discount on debt 5 5
Pension and
postretirement
healthcare benefit
expense 1 3
Loss on extinguishment
of debt - 8
Other noncash items
affecting net loss 14 11
Contributions to
employee pension and
postretirement plans (8) (7)
Changes in assets and liabilities:
Increase in accounts
receivable (52) (64)
Decrease in
inventories 53 2
(Increase) decrease in
prepaid and other
assets 7 8
Increase (decrease) in
accounts payable and
accrued liabilities 1 (10)
Increase (decrease) in
income taxes payable 4 9
Other, net 1 (1)
--- ---
Cash provided by
operating activities 13 35
--- ---
Cash Flows from Investing Activities:
Capital expenditures (93) (67)
Acquisition of
business (1,653) -
Cash used in investing
activities (1,746) (67)
------ ---
Cash Flows from Financing Activities:
Repayments of debt (9) (11)
Proceeds from debt 750 -
Debt issuance costs (15) (2)
Dividends paid (59) (58)
Proceeds from the
exercise of warrants
and options 3 2
Cash provided by (used
in) financing
activities 670 (69)
--- ---
Effects of exchange
rate changes on cash
and cash equivalents (8) (2)
--- ---
Net increase
(decrease) in cash
and cash equivalents (1,071) (103)
Cash and cash
equivalents at
beginning of period 1,276 1,475
Cash and cash
equivalents at end of
period $205 $1,372
==== ======
TRONOX LIMITED
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended June
30, Six Months Ended June 30,
------------------------ -------------------------
2015 2014 2015 2014
---- ---- ---- ----
Net income (loss) $(118) $2 $(164) $(52)
Interest and debt expense, net 52 33 86 67
Interest income (2) (3) (4) (6)
Income tax (benefit) provision 11 (25) 18 (26)
Depreciation, depletion and
amortization expense 75 84 140 157
---
EBITDA 18 91 76 140
Amortization of inventory step-up
from purchase accounting 9 - 9 -
Transfer tax due to acquisition (3) - (11) -
Transaction cost (a) 21 - 27 -
Share-based compensation 7 6 13 11
Loss on extinguishment of debt - 8 - 8
Foreign currency remeasurement 5 (2) 5 4
Other items (b) 10 5 12 9
Adjusted EBITDA $67 $108 $131 $172
=== ==== ==== ====
Adjusted EBITDA by Segment
Tio2 segment $36 $125 $121 $208
Alkali segment 50 - 50 -
Corporate (19) (17) (40) (36)
----
$67 $108 $131 $172
=== ==== ==== ====
(a) During 2015,
transaction
costs consist
of costs
associated
with the
acquisition
of the Alkali
business,
including
banking fees,
legal and
professional
fees.
(b) Includes
noncash
pension and
postretirement
costs,
accretion
expense,
severance
expense, and
other items.
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SOURCE Tronox Limited
