TRONOX LTD STAMFORD, Conn., May 4, 2016 /PRNewswire/ -- Tronox Limited (NYSE:TROX) today reported first quarter 2016 revenue of $475 million compared to $385 million in the first quarter 2015 and $535 million in the fourth quarter 2015. Adjusted EBITDA was $40 million compared to $64 million in the year-ago quarter and $60 million in the prior quarter. Adjusted net loss attributable to Tronox Limited in the quarter was $93 million, or $0.80 per diluted share, versus an adjusted net loss of $51 million, or $0.44 per diluted share, in the year-ago quarter and an adjusted net loss of $76 million, or $0.66 per diluted share, in the prior quarter.
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Tom Casey, chairman and CEO of Tronox, said: "We believe the first quarter marked the turning point of the long decline in TiO(2) pigment selling prices. Though first quarter TiO(2) pigment selling prices modestly declined sequentially as we forecasted, March average selling prices were higher than those in February. We are seeing TiO(2) pigment selling prices rise globally in the second quarter and expect to also see sequential selling price improvements in the third quarter as the increases roll across our global customer base. For the second consecutive quarter we saw TiO(2) pigment sales volumes increase by more than 7 percent year-on-year. This high volume of purchases has further reduced inventories."
Casey continued: "Our Alkali business continues to operate in a sold-out mode benefiting from its sustaining structural cost advantage. As a result, Alkali can sell every ton it produces. In the first 12 months of having Alkali in our portfolio, the business has delivered free cash flow of $156 million, which has exceeded our expectations."
Casey concluded: "We continued to make good progress on cash generation sourced from cost and working capital reductions and our disciplined approach to capital expenditures. Our TiO(2 )and Alkali businesses delivered free cash flow of $73 million to the company in the first quarter and our Operational Excellence program is on track to meet its cash generation target in 2016. We repurchased approximately $20 million face value of our bonds in the quarter for a price of $15 million, which resulted in a $4 million net gain, and closed the quarter with $152 million of cash and liquidity of $444 million."
First Quarter 2016
Tronox TiO(2)
TiO(2 )segment revenue of $285 million was 26 percent lower than $385 million in the prior-year quarter, primarily the result of lower pigment selling prices, one-time titanium slag sales of more than 50,000 metric tons sold to third parties in the year-ago quarter and the timing of a large zircon shipment scheduled for March that shipped in April. We continue to expect zircon sales volumes in 2016 to exceed those of 2015. Zircon selling prices have been level for the last two quarters and we expect them to remain so. Sales of pigment products declined 12 percent compared to the prior-year quarter, as sales volumes increased 8 percent and average selling prices declined 19 percent (18 percent on a local currency basis). Pigment products sales volume gains were realized in EMEA and Asia-Pacific, while sales volumes in North America were essentially level to the year-ago quarter. Sales of titanium feedstocks and co-products were 50 percent lower than the year-ago quarter as a result of the substantial one-time prior-year external titanium slag sales and the timing of the zircon shipment as mentioned above. No external sales of titanium slag occurred in the current quarter as we consumed 100 percent of our slag production for TiO(2) pigment manufacturing. However, we expect third-party titanium slag sales in each of the next three quarters. Sales of rutile prime were level to the year-ago quarter, as higher sales volumes offset lower selling prices. Higher ilmenite sales partially offset lower sales of co-products zircon and pig iron. Selling prices for zircon were 12 percent lower than the year-ago quarter. Lower pig iron sales can be attributed to lower production as production was curtailed at two furnaces starting in the second quarter of last year. Pig iron is a by-product of making titanium slag in our furnaces in South Africa. Pig iron selling prices were down substantially as pricing in the market is correlated to market pricing for iron ore.
Compared sequentially to the prior quarter, TiO(2) segment revenue of $285 million was 15 percent lower than $336 million, primarily driven by lower feedstock and co-product sales. Pigment products revenue declined 2 percent, as sales volumes increased 2 percent and average selling prices declined 4 percent (4 percent on a local currency basis). Sales volumes were higher in EMEA, level in Asia and lower in North America relative to the prior quarter. Finished pigment products inventory ended the quarter below normal seasonal levels as planned. Sales of titanium feedstocks and co-products were 39 percent lower than the prior quarter as sales volumes declined 32 percent and average selling prices were 9 percent lower. The primary driver of lower sales volumes was the absence of titanium slag sales in the current quarter. Higher ilmenite sales volumes were more than offset by lower zircon, rutile prime and pig iron volumes. The selling price decline is primarily due to product mix, specifically higher ilmenite sales. Selling prices for zircon, rutile prime and pig iron remained level to the prior quarter.
TiO(2 )segment adjusted EBITDA of $22 million in the quarter compared to $85 million in the year-ago quarter and $36 million in the prior quarter. Primary drivers of the year-on-year difference are the fixed cost absorption impact of more than $30 million in the first quarter resulting from production curtailments that began in the second quarter of last year, coupled with lower pigment selling prices and the timing of zircon sales that moved from the first quarter to the second quarter. Compared sequentially, lower pigment selling prices and the timing of the zircon sales resulted in the lower segment adjusted EBITDA in the quarter. TiO(2) segment operating loss was $36 million compared to operating income of $9 million in the year-ago quarter and an operating loss of $65 million in the prior quarter. With cash provided by operating activities of $61 million, less capital expenditures of $17 million, TiO(2 )delivered free cash flow of $44 million in the first quarter, which was $37 million more in free cash flow than in the year-ago first quarter.
Capital expenditures in TiO(2) of $17 million in the first quarter included $8 million related to the Fairbreeze mine project. Fairbreeze, which began operations ahead of schedule in the fourth quarter of last year, is producing feedstock to supply the slag furnaces at our KZN Sands operations and providing zircon and rutile co-products. At project commencement, total capital expenditures for the Fairbreeze mine were estimated to be approximately $225 million. Approximately $172 million has been spent from commencement through the first quarter 2016 with approximately $40 million budgeted to be spent in the balance of 2016 for project completion. We expect to complete Fairbreeze under budget and be a net positive contributor to 2016 EBITDA from the sale of zircon and rutile co-products coupled with efficiency gains expected to be realized in downstream smelting and pigment operations from the mine's high quality ilmenite feedstock.
Tronox Alkali
Alkali segment revenue of $190 million was 3 percent lower than pro forma revenue of $195 million in the year-ago quarter. Sales volumes were 2 percent lower and selling prices were level to the year-ago quarter. Alkali remains in a sold-out mode. With sold-out conditions in both periods, the sales volume decline was primarily the result of lower production in the quarter. In the domestic market, sales volumes increased, driven by continued market growth, particularly in flat glass markets, while higher selling prices reflected implementation of price increases in annual contracts. Lower production volumes were reflected in lower export sales volumes compared to the year-ago quarter. Selling prices in the export market declined primarily due to lower prices in Asia. Chinese soda ash producers lowered domestic and export prices in the quarter as raw material and energy deflation and currency devaluation lowered their costs. However, substantial capacity was shut down in China in the quarter, some permanently, and this has led to price increases in both China and across Asia for those customers whose contracts permitted.
Compared sequentially to the prior quarter, Alkali revenue declined 5 percent, as 7 percent lower sales volumes were partially offset by 3 percent higher selling prices. Domestic sales volumes were slightly lower due to timing of shipments while lower export sales volumes resulted from lower production. Higher domestic selling prices and favorable mix were partially offset by lower export prices.
Alkali adjusted EBITDA of $35 million in the first quarter equaled pro forma adjusted EBITDA of $35 million in the prior-year quarter, as lower sales and higher royalty costs were offset by lower operating costs. Compared sequentially, adjusted EBITDA declined from $38 million in the fourth quarter, as lower sales were partially offset by favorable distribution and overhead costs, as we realized the synergies as anticipated at closing of the transaction in April 2015. Alkali segment operating income of $20 million compares to pro forma operating income of $22 million in the year-ago quarter and $23 million in the prior quarter. Capital expenditures in the first quarter were $16 million. With cash provided by operating activities of $45 million, less capital expenditures of $16 million, Alkali delivered free cash flow cash of $29 million in the first quarter.
Corporate
Corporate adjusted EBITDA was ($17) million in the first quarter versus adjusted EBITDA of ($21) million in the year-ago quarter and adjusted EBITDA of ($14) million in the prior quarter. Corporate cash used in operations was $105 million in the quarter primarily due to a $68 million semi-annual interest payment and cash for restructuring that will provide future benefit. Corporate loss from operations was $13 million in the quarter compared to a loss from operations of $18 million in the year-ago quarter and income from operations of $4 million in the prior quarter resulting from a change in segment allocation that was booked in the quarter.
Consolidated
Selling, general and administrative expenses in the first quarter were $47 million, compared to $44 million in the year-ago quarter and $46 million in the prior quarter. The current quarter and prior quarter include approximately $6 million of costs related to the Alkali business that were not in the year-ago quarter. Interest and debt expense of $46 million increased from $34 million in the year-ago quarter primarily due to a higher debt level related to the Alkali acquisition that closed in the second quarter of 2015. Gain on extinguishment of debt was $4 million, representing our bond repurchase activities in the quarter. On March 31, 2016, gross consolidated debt was $3,057 million, and debt, net of cash, was $2,905 million. Liquidity was $444 million including cash on the balance sheet of $152 million as of March 31, 2016. Capital expenditures were $33 million and depreciation, depletion and amortization was $55 million.
First Quarter 2016 Webcast Conference Call
Thursday, May 5, 2016, 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: 89581152
Conference Call Presentation Slides will be used during the conference call and are available on our website at http://www.tronox.com/
Conference Call Replay: Available via the Internet and telephone beginning on Thursday, May 5, 2016 at 11:30 a.m. ET (New York), until midnight, May 9, 2016.
Internet Replay: www.tronox.com
Replay dial-in telephone numbers:
U.S. / Canada: +1.855.859.2056
International: +1.404.537.3406
Conference ID: : 89581152
Upcoming Conferences
During the second quarter 2016 a member of management is scheduled to present at the following conferences:
-- Oppenheimer Industrial Growth Conference, New York, May 11, 2016
-- Goldman Sachs Basic Materials Conference, New York, May 18, 2016
-- B. Riley & Co. Annual Investor Conference, Hollywood, CA, May 26, 2016
Accompanying conference materials will be available at http://investor.tronox.com
About Tronox
Tronox Limited operates two vertically integrated mining and inorganic chemical businesses. Tronox TiO(2) mines and processes titanium ore, zircon and other minerals, and manufactures titanium dioxide pigments that add brightness and durability to paints, plastics, paper, and other everyday products. Tronox Alkali mines trona ore and manufactures natural soda ash, sodium bicarbonate, caustic soda, and other compounds which are used in the production of glass, detergents, baked goods, animal nutrition supplements, pharmaceuticals, and other essential products. For more information, visit www.tronox.com
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, 2015.
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 (U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended
March 31,
---------
2016 2015
---- ----
Net sales $475 $385
Cost of goods sold 455 350
Gross profit 20 35
Selling, general and administrative
expenses (47) (44)
Restructuring expense (2) -
Loss from operations (29) (9)
Interest and debt expense, net (46) (34)
Gain on extinguishment of debt 4 -
Other income (expense), net (9) 4
Loss before income taxes (80) (39)
Income tax provision (12) (7)
Net loss (92) (46)
Net income (loss) attributable to
noncontrolling interest (1) 3
Net loss attributable to Tronox
Limited $(91) $(49)
==== ====
Loss per share, basic and diluted $(0.78) $(0.42)
====== ======
Weighted average shares outstanding,
basic and diluted (in thousands) 115,920 115,374
======= =======
Other Operating Data:
---------------------
Capital expenditures $33 $32
Depreciation, depletion and
amortization expense $55 $65
---------------------------- --- ---
TRONOX LIMITED
SCHEDULE OF ADJUSTED OPERATIONS (NON-U.S. GAAP)*
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
Three Months Ended
March 31,
---------
2016 2015
---- ----
Net sales $475 $385
Cost of goods sold 455 350
Gross profit 20 35
Selling, general and
administrative expenses (47) (46)
Adjusted loss from operations (27) (11)
Interest and debt expense, net (46) (34)
Other income (expense), net (9) 4
Adjusted loss before income taxes (82) (41)
Income tax provision (12) (7)
Adjusted net loss (94) (48)
Net income (loss) attributable to
noncontrolling interest (1) 3
Adjusted net loss attributable to
Tronox Limited (Non-U.S. GAAP)* $(93) $(51)
Basic and diluted adjusted loss per
share, attributable to Tronox
Limited $(0.80) $(0.44)
====== ======
Weighted average shares
outstanding, basic and diluted (in
thousands) 115,920 115,374
======= =======
* 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 provides useful
information about our operating
results to investors and securities
analysts. Adjusted earnings
excludes the effects related to the
acquisition of the Alkali business,
restructuring expense and gain on
extinguishment of debt. 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
March 31,
---------
2016 2015
---- ----
Net loss
attributable to
Tronox Limited
(U.S. GAAP) $(91) $(49)
Acquisition related
matters (a) - (2)
Restructuring
expense (b) 2 -
Gain on
extinguishment of
debt (c) (4) -
Adjusted net loss
attributable to
Tronox Limited
(Non-U.S. GAAP) $(93) $(51)
==== ====
Basic and diluted
loss per share
attributable to
Tronox Limited
(U.S. GAAP) $(0.78) $(0.42)
Acquisition related
matters, per share - (0.02)
Restructuring
expense, per share 0.02 -
Gain on
extinguishment of
debt, per share (0.04) -
Basic and diluted
adjusted loss per
share attributable
to Tronox Limited
(Non-U.S. GAAP) $(0.80) $(0.44)
====== ======
Weighted average
shares outstanding,
basic and diluted
(in thousands) 115,920 115,374
======= =======
(a) One-time non-operating
items and the effect of
acquisitions.
(b) Represents severance costs
associated with the shutdown of
our sodium chlorate plant and
other global TiO2 restructuring
efforts.
(c) Represents the gain
associated with the repurchase
of $20 million face value of
the Senior Notes due 2020 and
Senior Notes due 2022.
TRONOX LIMITED
SEGMENT INFORMATION
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended
March 31,
---------
2016 2015
---- ----
TiO2segment $285 $385
Alkali segment 190 -
--- ---
Net sales $475 $385
==== ====
Income (loss) from operations
TiO2segment $(36) $9
Alkali segment 20 -
Corporate (13) (18)
--- ---
Loss from operations (29) (9)
Interest and debt expense, net (46) (34)
Gain on extinguishment of debt 4 -
Other income (expense), net (9) 4
Loss before income taxes (80) (39)
Income tax provision (12) (7)
--- ---
Net loss (92) (46)
Net income attributable to
noncontrolling interest (1) 3
--- ---
Net loss attributable to Tronox
Limited $(91) $(49)
==== ====
TRONOX LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(Millions of U.S. dollars, except share and per share data)
March 31, December 31,
ASSETS 2016 2015
---- ----
Current Assets
Cash and cash
equivalents $152 $229
Restricted cash 3 5
Accounts
receivable, net
of allowance for
doubtful accounts 367 391
Inventories, net 616 630
Prepaid and other
assets 36 46
-----------
Total current assets 1,174 1,301
Noncurrent Assets
Property, plant
and equipment,
net 1,859 1,843
Mineral
leaseholds, net 1,612 1,604
Intangible assets,
net 238 244
Inventories, net - 12
Other long-term
assets 24 23
Total assets $4,907 $5,027
====== ======
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable $152 $159
Accrued
liabilities 130 180
Short-term debt 150 150
Long-term debt
due within one
year 16 16
Income taxes
payable 49 43
Total current liabilities 497 548
Noncurrent Liabilities
Long-term debt 2,891 2,910
Pension and
postretirement
healthcare
benefits 141 141
Asset retirement
obligations 81 77
Long-term
deferred tax
liabilities 150 143
Other long-term
liabilities 101 98
-----------
Total liabilities 3,861 3,917
----- -----
Shareholders' Equity
Tronox Limited
Class A ordinary
shares, par value
$0.01 -
65,846,466 shares
issued and
64,999,095 shares
outstanding at
March 31, 2016
and 65,443,363
shares issued and
64,521,851
shares
outstanding at
December 31, 2015 1 1
Tronox Limited
Class B ordinary
shares, par value
$0.01 -
51,154,280 shares
issued and
outstanding at
March 31, 2016
and December 31,
2015. - -
Capital in excess
of par value 1,504 1,500
Accumulated
deficit /
retained earnings (28) 93
Accumulated other
comprehensive
loss (555) (596)
-----------
Total Tronox Limited shareholders'
equity 922 998
Noncontrolling
interest 124 112
-----------
Total equity 1,046 1,110
Total liabilities and equity $4,907 $5,027
====== ======
TRONOX LIMITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended
March 31,
2016 2015
---- ----
Cash Flows from Operating Activities:
Net loss $(92) $(46)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation, depletion
and amortization 55 65
Deferred income taxes (1) (3)
Share-based
compensation expense 5 6
Amortization of
deferred debt issuance
costs and discount on
debt 3 2
Pension and
postretirement
healthcare benefit
expense 2 1
Gain on extinguishment
of debt (4) -
Other noncash items
affecting net loss 12 (4)
Contributions to
employee pension and
postretirement plans (4) (3)
Changes in assets and liabilities:
(Increase) decrease in
accounts receivable 26 (25)
(Increase) decrease in
inventories 37 (4)
(Increase) decrease in
prepaid and other
assets 3 9
Increase (decrease) in
accounts payable and
accrued liabilities (54) (58)
Increase (decrease) in
income taxes payable 11 (4)
Other, net 2 (1)
--- ---
Cash provided by (used
in) operating
activities 1 (65)
--- ---
Cash Flows from Investing Activities:
Capital expenditures (33) (32)
Proceeds from the sale
of assets 1 -
Restricted cash - (600)
Cash used in investing
activities (32) (632)
--- ----
Cash Flows from Financing Activities:
Repayments of debt (19) (5)
Proceeds from debt - 600
Dividends paid (30) (29)
Proceeds from the
exercise of warrants
and options - 3
Cash provided by (used
in) financing
activities (49) 569
--- ---
Effects of exchange
rate changes on cash
and cash equivalents 3 (9)
--- ---
Net decrease in cash
and cash equivalents (77) (137)
Cash and cash
equivalents at
beginning of period 229 1,276
Cash and cash
equivalents at end of
period $152 $1,139
==== ======
TRONOX LIMITED
CONDENSED STATEMENT OF FREE CASH FLOWS
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended March 31, 2016
---------------------------------
TiO2 Alkali Corporate Consolidated
---- ------ --------- ------------
Operating income (loss) $(36) $20 $(13) $(29)
Depreciation, depletion and
amortization expense 40 14 1 55
Other 18 1 (5) 14
--- --- --- ---
Adjusted EBITDA $22 $35 $(17) $40
=== === ==== ===
Adjusted EBITDA $22 $35 $(17) $40
Interest paid, net of capitalized
interest and interest income - - (68) (68)
Income tax provision - - (12) (12)
Contributions to employee pension
and postretirement plans (4) - - (4)
Deferred income taxes - - (1) (1)
Other 6 - 15 21
Changes in assets and liabilities
(Increase) decrease in accounts
receivable 25 1 - 26
(Increase) decrease in inventories 42 (5) - 37
(Increase) decrease in prepaid and
other assets (1) 3 1 3
Increase (decrease) in accounts
payable and accrued liabilities (29) 11 (36) (54)
Increase (decrease) in income
taxes payable - - 11 11
Other, net - - 2 2
--- --- --- ---
Subtotal 37 10 (22) 25
--- --- --- ---
Cash provided by (used in)
operating activities 61 45 (105) 1
Capital expenditures (17) (16) - (33)
--- --- --- ---
Free cash flow $44 $29 $(105) $(32)
=== === ===== ====
TRONOX LIMITED
RECONCILIATION OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (NON-U.S. GAAP)
(UNAUDITED)
(Millions of U.S. dollars)
Three Months Ended
March 31,
------------------
2016 2015
---- ----
Net loss $(92) $(46)
Interest and debt expense, net 46 34
Interest income (1) (2)
Income tax provision 12 7
Depreciation, depletion and
amortization expense 55 65
EBITDA 20 58
Share-based compensation 5 6
Restructuring expense 2 -
Foreign currency remeasurement 5 (2)
Gain on extinguishment of debt (4) -
Other items (a) 12 2
Adjusted EBITDA $40 $64
=== ===
Adjusted EBITDA by Segment
Tio2 segment $22 $85
Alkali segment 35 -
Corporate (17) (21)
Adjusted EBITDA $40 $64
=== ===
Includes
noncash
pension and
postretirement
costs,
severance
expense, and
(a) other items.
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SOURCE Tronox Limited
