Tronox Reports Fourth Quarter and Full Year 2020 Financial Results

Fourth Quarter 2020 Highlights:
*Revenue of $783 million
*Income from operations of $94 million; Net income from continuing operations of $57 million
*Adjusted EBITDA of $204 million; Adjusted EBITDA margin of 26 percent (Non-GAAP)
*GAAP diluted EPS of $0.31; Adjusted diluted EPS of $0.19 (Non-GAAP)
*TiO2 selling prices remained level, benefiting from margin stability initiatives, and sales volumes increased 8 percent versus fourth quarter 2019 driven by improved market demand globally
*Zircon volumes increased 48 percent versus fourth quarter 2019 driven primarily by strong demand in China

Full Year 2020 Highlights:
*Revenue of $2,758 million
*Income from operations of $271 million; Net income from continuing operations of $995 million
*Adjusted EBITDA of $668 million; Adjusted EBITDA margin of 24 percent (Non-GAAP)
*GAAP diluted income per share from continuing operations of $6.69; Adjusted diluted EPS of $0.56 (Non-GAAP)
*Total acquisition synergies of $243 million achieved, exceeding run rate synergy target of $220 million set at Investor Day in 2019; $193 million reflected in EBITDA, exceeding $183 million target set on third quarter 2020 earnings call
*Cash flow provided by operating activities of $355 million; Free Cash Flow of $160 million (Non-GAAP)
*$200 million discretionary debt repayment made in December 2020

Commenting on these results, John D. Romano, co-chief executive officer on an interim basis, stated, “As previewed in our earnings pre-release in January, Tronox delivered exceptional results in the fourth quarter, with the highest Adjusted EBITDA results since closing the Cristal acquisition. Driving these results is a significant recovery across all products, end markets, and geographies across our portfolio. As we have entered 2021, market demand for TiO2 and Zircon remains strong. Due to the favorable market trajectory, we anticipate TiO2 sales volumes to increase 11-15 percent sequentially in Q1 2021.”

Jean-François Turgeon, co-chief executive officer on an interim basis, added, “Throughout the global pandemic, we have focused on three priorities: the safety, health and well-being of our employees and their families; operating safely in all respects while managing our ongoing operations; and protecting, preserving, and strengthening our business and laying the foundation for the future. I am proud to say that, despite the numerous challenges presented by COVID-19, we achieved a record-breaking year for safety in 2020, an incredible accomplishment attributable to the unrelenting focus by the Tronox team. John and I want to thank our employees for their continued commitment to safety during these challenging times. I am also extremely pleased with the accomplishments of the organization in once again over-delivering on our synergy targets. We delivered $243 million in total acquisition synergies in 2020, exceeding the $220 million run rate synergy target we set for 2022 at our Investor Day in 2019, and there are additional synergies that will be realized in 2021. Continued delivery of incremental synergies combined with the momentum on the commercial side of the business we anticipate will result in Q1 2021 Adjusted EBITDA of $200-$210 million.”
details at: https://www.tronox.com/tronox-reports-fourth-quarter-and-full-year-2020-financial-results-2/

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