Third Quarter 2021 Financial Highlights:
*Revenue of $870 million, an increase of 29% year over year, driven by higher TiO2, zircon and pig iron average selling prices and higher TiO2 and zircon volumes
*Income from operations of $168 million and net income of $113 million
*GAAP diluted EPS of $0.70 and adjusted diluted EPS of $0.72 (non-GAAP)
*Adjusted EBITDA of $252 million, in line with guidance, and an Adjusted EBITDA margin of 29% (non-GAAP)
*Record $191 million in free cash flow after $65 million in capital expenditures
*Reduced total debt to $2.7 billion, resulting in a net leverage ratio of 2.6x, within the communicated long-term targeted range of 2.0x-3.0x and ahead of the 2023 timeframe
Commenting on these results, John D. Romano, co-chief executive officer, stated, “Jean-François and I are proud of the way our team navigated through numerous external challenges this quarter to deliver financial results in line with our third quarter guidance. We are working tirelessly with our dedicated team of employees to ensure we are the supplier of choice for our customers by leveraging our unmatched global footprint and vertically integrated business model. This quarter we successfully continued the implementation of planned regional pricing initiatives for both TiO2 and zircon, offsetting headwinds from inflationary pressures. Given inventory levels remain below normal, coupled with the strategic initiatives we have in place, we believe we are well positioned to continue to meet growing customer demand.”
Third Quarter 2021 Results
(Comparisons are to prior year (Q3 2021 vs. Q3 2020) unless otherwise noted)
The Company recorded third quarter revenue of $870 million, an increase of 29% year over year, primarily driven by higher TiO2 and zircon volumes and higher average selling prices across all products. Revenue from TiO2 sales was $682 million, an increase of 26% driven by a 13% increase in volumes and a 12% increase in average selling prices on both a US dollar and local currency basis. Sequentially, TiO2 volumes declined 10%, at the low end of guidance, and average selling prices increased 4% on a local currency basis or 3% on a US dollar basis.
Zircon revenue increased 107% to $116 million driven by an 81% increase in volumes and a 13% increase in average selling prices. Sequentially, zircon volumes declined 14%, due to higher sales from inventory in the second quarter, while average selling prices increased 10%.
Revenue from feedstock and other products was $72 million, which represented a 5% decrease, due to no external feedstock sales in the quarter compared to the prior year, partially offset by increased pig iron revenue from higher average selling prices.
Net income attributable to Tronox in the third quarter 2021 of $111 million included non-recurring costs primarily related to debt extinguishment totaling $4 million or $0.03 per diluted share. Excluding these items, adjusted net income attributable to Tronox (non-GAAP) was $115 million, or $0.72 per diluted share.
details at: https://www.tronox.com/tronox-reports-third-quarter-2021-financial-results/