First Quarter 2022 Financial Highlights:
*Produced revenue of $965 million, an increase of 8% compared to the prior year, primarily driven by higher revenue from TiO2 and pig iron
*Generated income from operations of $69 million and net income of $16 million, inclusive of a one-time fee regarding the settlement agreement reached with Venator totaling $85 million including the break fee and related negotiated interest
*Achieved GAAP diluted EPS of $0.10; adjusted diluted EPS of $0.60 (non-GAAP) primarily due to the settlement
*Delivered Adjusted EBITDA of $240 million, within the guided range, and an Adjusted EBITDA margin of 24.9%
*Invested $103 million in capital expenditures and generated free cash flow of $86 million
*Reaffirming 2022 Adjusted EBITDA and adjusted diluted EPS guidance; adjusting 2022 free cash flow lower largely to reflect the settlement
Co-CEOs’ Remarks
“Tronox delivered solid first quarter results and continued to serve our customers against a backdrop of higher costs and logistics constraints,” commented John D. Romano, co-chief executive officer. “It is a testament to the dedication of our employees that we have continued to deliver results in line with our expectations while overcoming these ongoing challenges, so we thank the Tronox team for their commitment.”
Mr. Romano continued, “Market demand remains sound across all products, though we continue to monitor Europe given the crisis in Ukraine. Our financial exposure is minimal, with less than 1% of our total revenue from Russia and Ukraine combined in 2021. More importantly, our hearts go out to those impacted by the conflict, and we offer our support to those who are affected.
“Our demand outlook for the year remains strong as TiO2 market tightness persists while inventories remain below seasonally normal levels, and similarly positive trends continue in the zircon and pig iron markets. While we experienced external challenges this quarter, Tronox remains well-positioned to continue to overcome adverse conditions. With our enterprise optimization model, we are able to optimize our global footprint, and we are investing to sustain our competitive advantage. We are focused on executing against our strategy to deliver safe, quality, low-cost, sustainable tons for our customers.”
Jean-François Turgeon, co-chief executive officer, added, “We are committed to driving continued value creation through our capital allocation strategy. Our key capital projects, including newTRON and the mining development projects in Australia and South Africa, will unlock additional value from our vertically integrated business model and ensure we remain competitive across all economic scenarios while enabling improved return on capital. In the first quarter, after announcing the refinancing transaction that enabled the achievement of reaching our previous gross debt target, we repurchased approximately 1.4 million shares for a total of $25 million. We expect to continue share repurchases under the remaining $275 million program through February 2024 as cash generation permits. Additional debt reduction below our previous target of $2.5 billion will further strengthen our balance sheet and reduce interest costs. We look forward to sharing more details on our long-term strategy, outlook, and capital allocation priorities at our Investor Day on June 16, 2022.”
details at: https://www.tronox.com/tronox-reports-first-quarter-2022-financial-results-3/