☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
England and Wales
|
|
98-1467236
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
|
|
|
263 Tresser Boulevard, Suite 1100
Stamford, Connecticut 06901
|
|
Laporte Road, Stallingborough
Grimsby, North East Lincolnshire, DN40 2PR
United Kingdom
|
Title of each class
|
|
Name of each exchange on which registered
|
Ordinary Shares, par value $0.01 per share
|
|
New York Stock Exchange
|
Large accelerated filer
|
☒
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
Smaller reporting company
|
☐
|
Emerging growth company
|
☐
|
|
|
|
|
Page
|
PART I – FINANCIAL INFORMATION
|
|
|
Item 1.
|
3
|
|
Item 2.
|
34
|
|
Item 3.
|
58
|
|
Item 4.
|
59
|
|
PART II – OTHER INFORMATION
|
|
|
Item 1.
|
60
|
|
Item 1A.
|
60
|
|
Item 2.
|
61
|
|
Item 3.
|
61
|
|
Item 4.
|
61
|
|
Item 5.
|
61
|
|
Item 6.
|
61
|
|
|
|
|
63
|
|
Page
No.
|
|
|
4
|
|
5
|
|
6
|
|
7
|
|
8-9
|
|
10
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
$
|
768
|
$
|
456
|
$
|
1,949
|
$
|
1,390
|
||||||||
Cost of goods sold
|
635
|
335
|
1,614
|
1,010
|
||||||||||||
Contract loss
|
—
|
—
|
19
|
—
|
||||||||||||
Gross profit
|
133
|
121
|
316
|
380
|
||||||||||||
Selling, general and administrative expenses
|
82
|
62
|
252
|
217
|
||||||||||||
Restructuring
|
3
|
—
|
13
|
—
|
||||||||||||
Impairment loss
|
—
|
6
|
—
|
31
|
||||||||||||
Income from operations
|
48
|
53
|
51
|
132
|
||||||||||||
Interest expense
|
(51
|
)
|
(47
|
)
|
(154
|
)
|
(144
|
)
|
||||||||
Interest income
|
4
|
8
|
16
|
23
|
||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
(2
|
)
|
(30
|
)
|
||||||||||
Other (expense) income, net
|
(1
|
)
|
7
|
2
|
27
|
|||||||||||
Income (loss) from continuing operations before income taxes
|
—
|
21
|
(87
|
)
|
8
|
|||||||||||
Income tax (provision) benefit
|
(12
|
)
|
(6
|
)
|
(10
|
)
|
16
|
|||||||||
Net (loss) income from continuing operations
|
(12
|
)
|
15
|
(97
|
)
|
24
|
||||||||||
Net income from discontinued operations, net of tax
|
6
|
—
|
5
|
—
|
||||||||||||
Net (loss) income
|
(6
|
)
|
15
|
(92
|
)
|
24
|
||||||||||
Net income attributable to noncontrolling interest
|
7
|
9
|
17
|
26
|
||||||||||||
Net (loss) income attributable to Tronox Holdings plc
|
$
|
(13
|
)
|
$
|
6
|
$
|
(109
|
)
|
$
|
(2
|
)
|
|||||
Net (loss) income per share, basic:
|
||||||||||||||||
Continuing operations
|
$
|
(0.13
|
)
|
$
|
0.05
|
$
|
(0.82
|
)
|
$
|
(0.01
|
)
|
|||||
Discontinued operations
|
$
|
0.04
|
$
|
—
|
$
|
0.04
|
$
|
—
|
||||||||
Net (loss) income per share, basic
|
$
|
(0.09
|
)
|
$
|
0.05
|
$
|
(0.78
|
)
|
$
|
(0.01
|
)
|
|||||
Net (loss) income per share, diluted:
|
||||||||||||||||
Continuing operations
|
$
|
(0.13
|
)
|
$
|
0.05
|
$
|
(0.82
|
)
|
$
|
(0.01
|
)
|
|||||
Discontinued operations
|
$
|
0.04
|
$
|
—
|
$
|
0.04
|
$
|
—
|
||||||||
Net (loss) income per share, diluted
|
$
|
(0.09
|
)
|
$
|
0.05
|
$
|
(0.78
|
)
|
$
|
(0.01
|
)
|
|||||
Weighted average shares outstanding, basic (in thousands)
|
142,278
|
123,121
|
139,158
|
122,850
|
||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
142,278
|
126,302
|
139,158
|
122,850
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net (loss) income
|
$
|
(6
|
)
|
$
|
15
|
$
|
(92
|
)
|
$
|
24
|
||||||
Other comprehensive income:
|
||||||||||||||||
Foreign currency translation adjustments
|
(79
|
)
|
(33
|
)
|
(57
|
)
|
(159
|
)
|
||||||||
Pension and postretirement plans:
|
||||||||||||||||
Amortization of unrecognized actuarial losses, net of taxes of less than $1 million in each of the three and nine months ended September 30, 2019 and 2018
|
—
|
—
|
1
|
2
|
||||||||||||
Settlement gain reclassified from accumulated other comprehensive loss
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||
Change in fair value of derivative hedges
|
(5
|
)
|
1
|
(28
|
)
|
1
|
||||||||||
|
||||||||||||||||
Other comprehensive (loss) income
|
(84
|
)
|
(35
|
)
|
(84
|
)
|
(159
|
)
|
||||||||
|
||||||||||||||||
Total comprehensive (loss)
|
(90
|
)
|
(20
|
)
|
(176
|
)
|
(135
|
)
|
||||||||
|
||||||||||||||||
Comprehensive (loss) income attributable to noncontrolling interest:
|
||||||||||||||||
Net income
|
7
|
9
|
17
|
26
|
||||||||||||
Foreign currency translation adjustments
|
(14
|
)
|
(9
|
)
|
1
|
(40
|
)
|
|||||||||
Comprehensive (loss) income attributable to noncontrolling interest
|
(7
|
)
|
—
|
18
|
(14
|
)
|
||||||||||
|
||||||||||||||||
Comprehensive (loss) income attributable to Tronox Holdings plc
|
$
|
(83
|
)
|
$
|
(20
|
)
|
$
|
(194
|
)
|
$
|
(121
|
)
|
|
September 30, 2019
|
December 31, 2018
|
||||||
ASSETS
|
||||||||
Current Assets
|
||||||||
Cash and cash equivalents
|
$
|
305
|
$
|
1,034
|
||||
Restricted cash
|
11
|
662
|
||||||
Accounts receivable, net of allowance for doubtful accounts
|
573
|
317
|
||||||
Inventories, net
|
1,035
|
479
|
||||||
Prepaid and other assets
|
125
|
50
|
||||||
Income taxes receivable
|
3
|
2
|
||||||
Assets held for sale
|
1
|
—
|
||||||
Total current assets
|
2,053
|
2,544
|
||||||
Noncurrent Assets
|
||||||||
Property, plant and equipment, net
|
1,710
|
1,004
|
||||||
Mineral leaseholds, net
|
810
|
796
|
||||||
Intangible assets, net
|
222
|
176
|
||||||
Lease right of use assets, net
|
101
|
—
|
||||||
Deferred tax assets
|
110
|
37
|
||||||
Other long-term assets
|
151
|
85
|
||||||
Total assets
|
$
|
5,157
|
$
|
4,642
|
||||
|
||||||||
LIABILITIES AND EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$
|
246
|
$
|
133
|
||||
Accrued liabilities
|
283
|
140
|
||||||
Short-term lease liabilities
|
35
|
—
|
||||||
Long-term debt due within one year
|
55
|
22
|
||||||
Income taxes payable
|
6
|
5
|
||||||
Liabilities held for sale
|
4
|
—
|
||||||
Total current liabilities
|
629
|
300
|
||||||
Noncurrent Liabilities
|
||||||||
Long-term debt, net
|
3,067
|
3,139
|
||||||
Pension and postretirement healthcare benefits
|
144
|
93
|
||||||
Asset retirement obligations
|
151
|
68
|
||||||
Environmental liabilities
|
62
|
1
|
||||||
Long-term lease liabilities
|
65
|
—
|
||||||
Long-term deferred tax liabilities
|
159
|
163
|
||||||
Other long-term liabilities
|
56
|
16
|
||||||
Total liabilities
|
4,333
|
3,780
|
||||||
|
||||||||
Commitments and Contingencies
|
|
|
||||||
Shareholders’ Equity
|
||||||||
Tronox Holdings plc ordinary shares, par value $0.01 — 141,888,454 shares issued and outstanding at September 30, 2019 and 123,015,301 shares issued and 122,933,845 shares outstanding at December 31, 2018
|
1
|
1
|
||||||
Capital in excess of par value
|
1,838
|
1,579
|
||||||
Accumulated deficit
|
(486
|
)
|
(357
|
)
|
||||
Accumulated other comprehensive loss
|
(686
|
)
|
(540
|
)
|
||||
Total Tronox Holdings plc shareholders’ equity
|
667
|
683
|
||||||
Noncontrolling interest
|
157
|
179
|
||||||
Total equity
|
824
|
862
|
||||||
Total liabilities and equity
|
$
|
5,157
|
$
|
4,642
|
|
Nine Months Ended
September 30,
|
|||||||
|
2019
|
2018
|
||||||
Cash Flows from Operating Activities:
|
||||||||
Net (loss) income
|
$
|
(92
|
)
|
$
|
24
|
|||
Net income from discontinued operations, net of tax
|
5
|
—
|
||||||
Net (loss) income from continuing operations
|
$
|
(97
|
)
|
$
|
24
|
|||
Adjustments to reconcile net (loss) income from continuing operations to net cash provided by operating activities, continuing operations:
|
||||||||
Depreciation, depletion and amortization
|
205
|
145
|
||||||
Deferred income taxes
|
(7
|
)
|
(29
|
)
|
||||
Share-based compensation expense
|
24
|
16
|
||||||
Amortization of deferred debt issuance costs and discount on debt
|
6
|
9
|
||||||
Loss on extinguishment of debt
|
2
|
30
|
||||||
Contract loss
|
19
|
—
|
||||||
Impairment losses
|
—
|
31
|
||||||
Acquired inventory step-up recognized in earnings
|
95
|
—
|
||||||
Other non-cash items affecting net (loss) income from continuing operations
|
20
|
(9
|
)
|
|||||
Changes in assets and liabilities:
|
||||||||
Increase in accounts receivable, net
|
(34
|
)
|
(21
|
)
|
||||
Decrease (increase) in inventories, net
|
14
|
(38
|
)
|
|||||
Decrease (increase) in prepaid and other assets
|
2
|
(1
|
)
|
|||||
Increase (decrease) in accounts payable and accrued liabilities
|
6
|
(11
|
)
|
|||||
Net changes in income tax payables and receivables
|
(5
|
)
|
11
|
|||||
Changes in other non-current assets and liabilities
|
(13
|
)
|
(14
|
)
|
||||
Cash provided by operating activities- continuing operations
|
237
|
143
|
||||||
|
||||||||
Cash Flows from Investing Activities:
|
||||||||
Capital expenditures
|
(140
|
)
|
(83
|
)
|
||||
Cristal Acquisition
|
(1,675
|
)
|
—
|
|||||
Proceeds from sale of Ashtabula
|
708
|
—
|
||||||
Insurance proceeds
|
10
|
—
|
||||||
Proceeds from sale of business
|
—
|
1
|
||||||
Loans
|
(25
|
)
|
(39
|
)
|
||||
Proceeds from sale of assets
|
2
|
—
|
||||||
Cash used in investing activities- continuing operation
|
(1,120
|
)
|
(121
|
)
|
||||
|
||||||||
Cash Flows from Financing Activities:
|
||||||||
Repayments of long-term debt
|
(272
|
)
|
(600
|
)
|
||||
Proceeds from long-term debt
|
222
|
615
|
||||||
Repurchase of common stock
|
(288
|
)
|
—
|
|||||
Acquisition of noncontrolling interest
|
(148
|
)
|
—
|
|||||
Call premium paid
|
—
|
(22
|
)
|
|||||
Debt issuance costs
|
(4
|
)
|
(10
|
)
|
||||
Proceeds from the exercise of options and warrants
|
—
|
6
|
||||||
Dividends paid
|
(21
|
)
|
(17
|
)
|
||||
Restricted stock and performance-based shares settled in cash for withholding taxes
|
(6
|
)
|
(6
|
)
|
||||
Cash used in financing activities- continuing operations
|
(517
|
)
|
(34
|
)
|
||||
|
||||||||
Discontinued Operations:
|
||||||||
Cash provided by operating activities
|
29
|
—
|
||||||
Cash used in investing activities
|
(1
|
)
|
—
|
|||||
Net cash flows provided by discontinued operations
|
28
|
—
|
||||||
Effects of exchange rate changes on cash and cash equivalents and restricted cash
|
(8
|
)
|
(21
|
)
|
||||
|
||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
(1,380
|
)
|
(33
|
)
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
1,696
|
1,769
|
||||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
316
|
$
|
1,736
|
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
|
Tronox
Holdings
plc
Ordinary
Shares
(Amount)
|
Capital
in
Excess
of par
Value
|
(Accumulated
Deficit)
|
Accumulated
Other
Comprehensive
Loss
|
Total
Tronox
Holdings plc
Shareholders’
Equity
|
Non-
controlling
Interest
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at December 31, 2018
|
122,934
|
$
|
1
|
$
|
1,579
|
$
|
(357
|
)
|
$
|
(540
|
)
|
$
|
683
|
$
|
179
|
$
|
862
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
(34
|
)
|
—
|
(34
|
)
|
4
|
(30
|
)
|
|||||||||||||||||||||
Other comprehensive (loss) income
|
—
|
—
|
—
|
—
|
(11
|
)
|
(11
|
)
|
11
|
—
|
||||||||||||||||||||||
Share-based compensation
|
3,306
|
—
|
8
|
—
|
—
|
8
|
—
|
8
|
||||||||||||||||||||||||
Shares cancelled
|
(502
|
)
|
—
|
(6
|
)
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
||||||||||||||||||||
Acquisition of noncontrolling interest
|
—
|
—
|
3
|
—
|
(61
|
)
|
(58
|
)
|
(90
|
)
|
(148
|
)
|
||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
—
|
(6
|
)
|
|||||||||||||||||||||
Balance at March 31, 2019
|
125,738
|
$
|
1
|
$
|
1,584
|
$
|
(397
|
)
|
$
|
(612
|
)
|
$
|
576
|
$
|
104
|
$
|
680
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
(62
|
)
|
—
|
(62
|
)
|
6
|
(56
|
)
|
|||||||||||||||||||||
Other comprehensive (loss) income
|
—
|
—
|
—
|
—
|
(4
|
)
|
(4
|
)
|
4
|
—
|
||||||||||||||||||||||
Share-based compensation
|
20
|
—
|
7
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||||||||||
Shares cancelled
|
(4
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
Shares issued for acquisition
|
37,580
|
—
|
526
|
—
|
—
|
526
|
—
|
526
|
||||||||||||||||||||||||
Shares repurchased and cancelled
|
(18,957
|
)
|
—
|
(257
|
)
|
—
|
—
|
(257
|
)
|
—
|
(257
|
)
|
||||||||||||||||||||
Cristal acquisition
|
—
|
—
|
—
|
—
|
—
|
—
|
36
|
36
|
||||||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(7
|
)
|
—
|
(7
|
)
|
—
|
(7
|
)
|
|||||||||||||||||||||
Balance at June 30, 2019
|
144,377
|
$
|
1
|
$
|
1,860
|
$
|
(466
|
)
|
$
|
(616
|
)
|
$
|
779
|
$
|
150
|
$
|
929
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
(13
|
)
|
—
|
(13
|
)
|
7
|
(6
|
)
|
|||||||||||||||||||||
Other comprehensive (loss) income
|
—
|
—
|
—
|
—
|
(70
|
)
|
(70
|
)
|
(14
|
)
|
(84
|
)
|
||||||||||||||||||||
Share-based compensation
|
10
|
—
|
9
|
—
|
—
|
9
|
—
|
9
|
||||||||||||||||||||||||
Shares cancelled
|
(3
|
)
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||||
Shares repurchased and cancelled
|
(2,496
|
)
|
—
|
(31
|
)
|
—
|
—
|
(31
|
)
|
—
|
(31
|
)
|
||||||||||||||||||||
Cristal acquisition
|
—
|
—
|
—
|
—
|
—
|
—
|
14
|
14
|
||||||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(7
|
)
|
—
|
(7
|
)
|
—
|
(7
|
)
|
|||||||||||||||||||||
Balance at September 30, 2019
|
141,888
|
$
|
1
|
$
|
1,838
|
$
|
(486
|
)
|
$
|
(686
|
)
|
$
|
667
|
$
|
157
|
$
|
824
|
Tronox
Holdings
plc
Ordinary
Shares (in
thousands)
|
Tronox
Holdings
plc
Ordinary
Shares
|
Capital
in
Excess
of par
Value
|
(Accumulated
Deficit)
|
Accumulated
Other
Comprehensive
Loss
|
Total
Tronox
Holdings plc Shareholders’
Equity
|
Non-
controlling
Interest
|
Total
Equity
|
|||||||||||||||||||||||||
Balance at December 31, 2017
|
121,271
|
$
|
1
|
$
|
1,558
|
$
|
(327
|
)
|
$
|
(403
|
)
|
$
|
829
|
$
|
186
|
$
|
1,015
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
(44
|
)
|
—
|
(44
|
)
|
3
|
(41
|
)
|
|||||||||||||||||||||
Other comprehensive income (loss)
|
—
|
—
|
—
|
—
|
45
|
45
|
15
|
60
|
||||||||||||||||||||||||
Share-based compensation
|
1,099
|
—
|
7
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||||||||||
Shares cancelled
|
(222
|
)
|
—
|
(4
|
)
|
—
|
—
|
(4
|
)
|
—
|
(4
|
)
|
||||||||||||||||||||
Warrants and options exercised
|
338
|
—
|
2
|
—
|
—
|
2
|
—
|
2
|
||||||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
—
|
(6
|
)
|
|||||||||||||||||||||
Balance at March 31, 2018
|
122,486
|
$
|
1
|
$
|
1,563
|
$
|
(377
|
)
|
$
|
(358
|
)
|
$
|
829
|
$
|
204
|
$
|
1,033
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
36
|
—
|
36
|
14
|
50
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
—
|
—
|
—
|
—
|
(138
|
)
|
(138
|
)
|
(46
|
)
|
(184
|
)
|
||||||||||||||||||||
Share-based compensation
|
215
|
—
|
6
|
—
|
—
|
6
|
—
|
6
|
||||||||||||||||||||||||
Shares cancelled
|
(93
|
)
|
—
|
(2
|
)
|
—
|
—
|
(2
|
)
|
—
|
(2
|
)
|
||||||||||||||||||||
Warrants and options exercised
|
292
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(6
|
)
|
—
|
(6
|
)
|
—
|
(6
|
)
|
|||||||||||||||||||||
Balance at June 30, 2018
|
122,900
|
$
|
1
|
$
|
1,567
|
$
|
(347
|
)
|
$
|
(496
|
)
|
$
|
725
|
$
|
172
|
$
|
897
|
|||||||||||||||
Net (loss) income
|
—
|
—
|
—
|
6
|
—
|
6
|
9
|
15
|
||||||||||||||||||||||||
Other comprehensive income (loss)
|
—
|
—
|
—
|
—
|
(26
|
)
|
(26
|
)
|
(9
|
)
|
(35
|
)
|
||||||||||||||||||||
Share-based compensation
|
31
|
—
|
7
|
—
|
—
|
7
|
—
|
7
|
||||||||||||||||||||||||
Shares cancelled
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Warrants and options exercised
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Ordinary share dividends ($0.045 per share)
|
—
|
—
|
—
|
(5
|
)
|
—
|
(5
|
)
|
—
|
(5
|
)
|
|||||||||||||||||||||
Balance at September 30, 2018
|
122,931
|
$
|
1
|
$
|
1,574
|
$
|
(346
|
)
|
$
|
(522
|
)
|
$
|
707
|
$
|
172
|
$
|
879
|
1. |
The Company
|
2. |
Cristal Acquisition and Related Divestitures
|
|
Fair Value
|
|||
Purchase Price Consideration:
|
||||
Tronox Holdings plc shares issued
|
37,580,000
|
|||
Tronox Holdings plc closing price per share on April 10, 2019
|
$
|
14.00
|
||
Total fair value of Tronox Holdings plc shares issued at acquisition date
|
$
|
526
|
||
Cash consideration paid
|
$
|
1,675
|
||
Total purchase price
|
$
|
2,201
|
|
Fair Value
|
|||
Fair Value of Assets Acquired:
|
||||
Accounts receivable
|
$
|
247
|
||
Inventory
|
692
|
|||
Deferred taxes
|
65
|
|||
Prepaid and other assets
|
77
|
|||
Property, plant and equipment
|
744
|
|||
Mineral leaseholds
|
69
|
|||
Intangible assets
|
69
|
|||
Lease right of use assets
|
39
|
|||
Other long-term assets
|
40
|
|||
Assets held for sale
|
852
|
|||
Total assets acquired
|
$
|
2,894
|
||
Less: Liabilities Assumed
|
||||
Accounts payable
|
$
|
94
|
||
Accrued liabilities
|
131
|
|||
Short-term lease liabilities
|
13
|
|||
Pension and postretirement healthcare benefits
|
62
|
|||
Environmental liabilities
|
62
|
|||
Asset retirement obligations
|
77
|
|||
Long-term debt
|
22
|
|||
Long-term lease liabilities
|
23
|
|||
Other long-term liabilities
|
27
|
|||
Liabilities held for sale
|
132
|
|||
Total liabilities assumed
|
$
|
643
|
||
Less noncontrolling interest
|
50
|
|||
Purchase price
|
$
|
2,201
|
(1)
|
conforming the accounting policies of Cristal to those applied by Tronox;
|
(2)
|
conversion to U.S. GAAP from IFRS for Cristal;
|
(3)
|
the elimination of transactions between Tronox and Cristal;
|
(4)
|
recording certain incremental expenses resulting from purchase accounting adjustments, such as inventory step-up amortization, depreciation, depletion and amortization expense in connection with fair value adjustments to property, plant and equipment, mineral leases and intangible assets;
|
(5)
|
recording the contract loss on the sale of the 8120 product line as a charge in the first quarter of 2018;
|
(6)
|
recording all transaction costs incurred in the first quarter of 2018;
|
(7)
|
recording the effect on interest expense related to borrowings in connection with the Cristal Transaction; and
|
(8)
|
recording the related tax effects and the impacts to EPS for the shares issued in conjunction with the transaction.
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
Net sales
|
$
|
768
|
$
|
832
|
$
|
2,315
|
$
|
2,611
|
||||||||
Net income from continuing operations
|
$
|
26
|
$
|
41
|
$
|
29
|
$
|
6
|
||||||||
Diluted net income (loss) per share from continuing operations attributable to Tronox plc
|
$
|
0.13
|
$
|
0.18
|
$
|
0.07
|
$
|
(0.16
|
)
|
3. |
Restructuring Initiatives
|
|
Employee-
Related Costs
|
|||
Second Quarter 2019 charges
|
$
|
10
|
||
Cash payments
|
(6
|
)
|
||
Foreign exchange
|
—
|
|||
Balance, June 30, 2019
|
$
|
4
|
||
Third Quarter 2019 charges
|
3
|
|||
Cash payments
|
(3
|
)
|
||
Foreign exchange
|
—
|
|||
Balance, September 30, 2019
|
$
|
4
|
4. |
Revenue
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
North America
|
$
|
203
|
$
|
175
|
$
|
521
|
$
|
505
|
||||||||
South and Central America
|
52
|
21
|
113
|
58
|
||||||||||||
Europe, Middle-East and Africa
|
266
|
118
|
712
|
413
|
||||||||||||
Asia Pacific
|
247
|
142
|
603
|
414
|
||||||||||||
Total net sales
|
$
|
768
|
$
|
456
|
$
|
1,949
|
$
|
1,390
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
TiO2
|
$
|
603
|
$
|
307
|
$
|
1,505
|
$
|
978
|
||||||||
Zircon
|
68
|
72
|
220
|
211
|
||||||||||||
Feedstock and other products
|
97
|
67
|
224
|
164
|
||||||||||||
Electrolytic
|
—
|
10
|
—
|
37
|
||||||||||||
Total net sales
|
$
|
768
|
$
|
456
|
$
|
1,949
|
$
|
1,390
|
5. |
Dispositions
|
|
Three Months Ended
September 30, 2019
|
Nine Months Ended
September 30, 2019
|
||||||
Net sales
|
$
|
—
|
$
|
41
|
||||
Cost of goods sold
|
—
|
29
|
||||||
Gross profit
|
—
|
12
|
||||||
Selling, general and administrative expense
|
(2
|
)
|
(5
|
)
|
||||
Income before income taxes
|
(2
|
)
|
7
|
|||||
Income tax benefit (provision)
|
8
|
(2
|
)
|
|||||
Income from discontinued operations, net of tax
|
$
|
6
|
$
|
5
|
|
September 30, 2019
|
|||
Assets:
|
||||
Inventories, net
|
$
|
1
|
||
Total assets held for sale
|
$
|
1
|
||
Liabilities:
|
||||
Accrued liabilities
|
$
|
1
|
||
Asset retirement obligations
|
3
|
|||
Total liabilities held for sale
|
$
|
4
|
6. |
Income Taxes
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Income tax (provision) benefit
|
$
|
(12
|
)
|
$
|
(6
|
)
|
$
|
(10
|
)
|
$
|
16
|
|||||
Income (loss) before income taxes
|
$
|
—
|
$
|
21
|
$
|
(87
|
)
|
$
|
8
|
|||||||
Effective tax rate
|
N/A
|
29
|
%
|
(11
|
)%
|
(200
|
)%
|
7. |
Income (Loss) Per Share
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Numerator - Basic and Diluted:
|
||||||||||||||||
Net (loss) income from continuing operations
|
$
|
(12
|
)
|
$
|
15
|
$
|
(97
|
)
|
$
|
24
|
||||||
Less: Net income from continuing operations attributable to noncontrolling interest
|
7
|
9
|
17
|
26
|
||||||||||||
Undistributed net (loss) income from continuing operations attributable to Tronox Holdings plc
|
(19
|
)
|
6
|
(114
|
)
|
(2
|
)
|
|||||||||
Net income from discontinued operations
|
6
|
—
|
5
|
—
|
||||||||||||
Net (loss) income available to ordinary shares
|
$
|
(13
|
)
|
$
|
6
|
$
|
(109
|
)
|
$
|
(2
|
)
|
|
Three Months Ended September 30,
Shares
|
Nine Months Ended September 30,
Shares
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Options
|
1,263,682
|
1,324,991
|
1,263,682
|
1,324,991
|
||||||||||||
Restricted share units
|
5,603,055
|
2,107,664
|
5,603,055
|
5,289,161
|
8. |
Inventories, Net
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Raw materials
|
$
|
191
|
$
|
102
|
||||
Work-in-process
|
101
|
43
|
||||||
Finished goods, net
|
529
|
225
|
||||||
Materials and supplies, net
|
214
|
109
|
||||||
Inventories, net – current
|
$
|
1,035
|
$
|
479
|
9. |
Property, Plant and Equipment, Net
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Land and land improvements
|
$
|
161
|
$
|
96
|
||||
Buildings
|
311
|
242
|
||||||
Machinery and equipment
|
1,933
|
1,395
|
||||||
Construction-in-progress
|
180
|
63
|
||||||
Other
|
49
|
39
|
||||||
Subtotal
|
2,634
|
1,835
|
||||||
Less: accumulated depreciation
|
(924
|
)
|
(831
|
)
|
||||
Property, plant and equipment, net
|
$
|
1,710
|
$
|
1,004
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Cost of goods sold
|
$
|
43
|
$
|
33
|
$
|
133
|
$
|
97
|
||||||||
Selling, general and administrative expenses
|
1
|
—
|
3
|
2
|
||||||||||||
Total
|
$
|
44
|
$
|
33
|
$
|
136
|
$
|
99
|
10. |
Mineral Leaseholds, Net
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Mineral leaseholds
|
$
|
1,294
|
$
|
1,238
|
||||
Less: accumulated depletion
|
(484
|
)
|
(442
|
)
|
||||
Mineral leaseholds, net
|
$
|
810
|
$
|
796
|
11. |
Intangible Assets, Net
|
|
September 30, 2019
|
December 31, 2018
|
||||||||||||||||||||||
|
Gross Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
Gross Cost
|
Accumulated
Amortization
|
Net Carrying
Amount
|
||||||||||||||||||
Customer relationships
|
$
|
291
|
$
|
(169
|
)
|
$
|
122
|
$
|
291
|
$
|
(154
|
)
|
$
|
137
|
||||||||||
TiO2 technology
|
101
|
(16
|
)
|
85
|
32
|
(13
|
)
|
19
|
||||||||||||||||
Internal-use software
|
47
|
(32
|
)
|
15
|
47
|
(27
|
)
|
20
|
||||||||||||||||
Intangible assets, net
|
$
|
439
|
$
|
(217
|
)
|
$
|
222
|
$
|
370
|
$
|
(194
|
)
|
$
|
176
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Cost of goods sold
|
$
|
—
|
$
|
—
|
$
|
1
|
$
|
1
|
||||||||
Selling, general and administrative expenses
|
9
|
7
|
22
|
19
|
||||||||||||
Total
|
$
|
9
|
$
|
7
|
$
|
23
|
$
|
20
|
12. |
Balance Sheet and Cash Flow Supplemental Information
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Employee-related costs and benefits
|
$
|
95
|
$
|
69
|
||||
Related party payables
|
7
|
—
|
||||||
Interest
|
32
|
16
|
||||||
Sales rebates
|
37
|
18
|
||||||
Restructuring
|
4
|
—
|
||||||
Taxes other than income taxes
|
14
|
5
|
||||||
Asset retirement obligations
|
11
|
6
|
||||||
Interest rate swaps
|
30
|
—
|
||||||
Foreign currency derivatives
|
—
|
6
|
||||||
Professional fees and other
|
53
|
20
|
||||||
Accrued liabilities
|
$
|
283
|
$
|
140
|
Supplemental non cash information:
|
Nine Months Ended
September 30, 2019
|
|||
Investing activities- shares issued in the Cristal acquisition
|
$
|
526
|
||
Financing activities- debt assumed in the Cristal acquisition
|
$
|
22
|
13. |
Debt
|
• |
A revolving credit facility with Emirates NBD PJSC under which we will have the ability to borrow up to approximately $50 million. The revolver is secured by the inventory and trade receivables of Cristal Pigment UK Ltd. Under the terms of the revolver, for U.S dollar borrowings the interest rate is LIBOR plus 2.25% while the interest rate for Euro borrowings is Euribor plus 2.25%. There were no borrowings outstanding under this revolver at September 30, 2019.
|
• |
A working capital debt agreement in China (“Tikon Loan”) that matures in April and May of 2021. The Tikon Loan bears interest based on an official lending basis rate per annum as announced and published by the People’s Bank of China plus a 7% premium. At September 30, 2019 the outstanding balance on the Tikon Loan was approximately CNY111 million (approximately $16 million at September 30, 2019 exchange rate).
|
• |
An interest free loan with the Australian government (“Australian Government Loan”) that matures in December 2021 subject to renewal every 5 years with final termination in December 2036. The loan balance due upon maturity is AUD6 million. At September 30, 2019 the discounted value on the Australian Government Loan was approximately AUD 1.5 million (approximately $1 million at September 30, 2019 exchange rate).
|
|
Original
Principal
|
|
|
Annual
Interest Rate
|
|
Maturity
Date
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
Term Loan Facility, net of unamortized discount (1) (2)
|
$
|
2,150
|
|
|
Variable
|
|
9/22/2024
|
|
$
|
1,909
|
|
$
|
2,119
|
|
Senior Notes due 2025
|
|
450
|
|
|
|
5.75%
|
10/01/2025
|
|
|
450
|
|
|
450
|
|
Senior Notes due 2026
|
|
615
|
|
|
|
6.50%
|
4/15/2026
|
|
|
615
|
|
|
615
|
|
Standard Bank Term Loan Facility (1)
|
|
222
|
|
|
Variable
|
|
03/25/2024
|
|
|
154
|
|
|
—
|
|
Tikon Loan
|
N/A
|
Variable
|
05/23/2021
|
16
|
—
|
|||||||||
Australian Government Loan
|
N/A
|
N/A
|
12/31/2036
|
1
|
—
|
|||||||||
Finance leases
|
|
|
|
|
|
|
|
|
14
|
|
|
16
|
||
Long-term debt
|
|
|
|
|
|
|
|
|
|
|
3,159
|
|
|
3,200
|
Less: Long-term debt due within one year
|
|
|
|
|
|
|
|
|
|
|
(55)
|
|
|
(22)
|
Debt issuance costs
|
|
|
|
|
|
|
|
|
|
|
(37)
|
|
|
(39)
|
Long-term debt, net
|
|
|
|
|
|
|
|
|
|
$
|
3,067
|
|
$
|
3,139
|
(1) |
Average effective interest rate on the Term Loan Facility of 5.6% and 5.4% during the nine months ended September 30, 2019 and 2018, respectively. Average effective interest rate on the Standard Bank Term Loan Facility of 10.0% during the nine months ended September 30, 2019.
|
(2) |
The Term Loan Facility consists of (i) a U.S. dollar term facility in an aggregate principal amount of $1.5 billion (the “Term Loans”) with our subsidiary, Tronox Finance LLC (“Tronox Finance”) as the borrower and (ii) a U.S. dollar term facility in an aggregate principal amount of $650 million (the “Blocked Term Loan”) with our unrestricted subsidiary, Tronox Blocked Borrower LLC (the “Blocked Borrower”) as the borrower, which Blocked Term Loan was funded into a blocked account. Upon consummation of the Cristal Transaction on April 10, 2019, the Blocked Borrower merged with and into Tronox Finance, and the Blocked Term Loan became available to Tronox Finance. Pursuant to the terms of the Term Loan Facility, in the event of an asset sale, some or all of the net proceeds from the sale may be required to be used to prepay borrowings under the Term Loan Facility based on the ratio of the total combined debt outstanding under the Term Loan Facility and the Wells Fargo Revolver to the consolidated EBITDA, as defined in the Term Loan Facility, for the previous four quarters. If this ratio is greater than 3, then all of the net proceeds from an asset sale would be required to be used to prepay borrowings under the Term Loan Facility, while if the ratio were less than 3 but greater than 2.75, 50% of the net proceeds would be required for prepayment and if the ratio were less than 2.75, no prepayment would be required. On May 1, 2019, we divested Cristal’s North American operations for approximately $700 million and subsequent to the sale,our senior net leverage ratio was below 2.75, and, as a result, the sale of the North American operations did not trigger a prepayment event.
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Term Loan Facility
|
$
|
1,919
|
$
|
2,074
|
||||
Standard Bank Term Loan Facility
|
154
|
—
|
||||||
Senior Notes due 2025
|
422
|
368
|
||||||
Senior Notes due 2026
|
589
|
518
|
||||||
Tikon Loan
|
16
|
—
|
||||||
Australian Government Loan
|
1
|
—
|
||||||
Interest rate swaps
|
30
|
—
|
||||||
Foreign currency contracts
|
2
|
—
|
16. |
Leases
|
|
Three months
ended
September 30, 2019
|
Nine Months ended
September 30, 2019
|
||||||
Operating lease expense
|
$
|
12
|
$
|
29
|
||||
|
||||||||
Finance lease expense:
|
||||||||
Amortization of right-of-use assets
|
1
|
1
|
||||||
Interest on lease liabilities
|
1
|
2
|
||||||
|
||||||||
Short term lease expense
|
5
|
16
|
||||||
Variable lease expense
|
4
|
16
|
||||||
Total lease expense
|
$
|
23
|
$
|
64
|
|
Three months
ended
September 30, 2019
|
Nine Months ended
September 30, 2019
|
||||||
Cost of goods sold
|
$
|
21
|
$
|
60
|
||||
Selling, general and administrative expenses
|
2
|
4
|
||||||
Total
|
$
|
23
|
$
|
64
|
|
September 30,
2019
|
|||
Weighted-average remaining lease term:
|
||||
Operating leases
|
3.9
|
|||
Finance leases
|
10.8
|
|||
Weighted-average discount rate:
|
||||
Operating leases
|
8.4
|
%
|
||
Finance leases
|
14.2
|
%
|
|
Operating
Leases
|
Finance
Leases
|
||||||
2019
|
$
|
12
|
$
|
1
|
||||
2020
|
39
|
3
|
||||||
2021
|
32
|
3
|
||||||
2022
|
15
|
3
|
||||||
2023
|
6
|
3
|
||||||
Thereafter
|
12
|
16
|
||||||
Total lease payments
|
116
|
29
|
||||||
Less: imputed interest
|
(17
|
)
|
(14
|
)
|
||||
Present value of lease payments
|
$
|
99
|
$
|
15
|
|
Operating
Leases
|
Finance
Leases
|
||||||
2019
|
$
|
15
|
$
|
3
|
||||
2020
|
6
|
3
|
||||||
2021
|
5
|
3
|
||||||
2022
|
4
|
3
|
||||||
2023
|
3
|
3
|
||||||
Thereafter
|
4
|
18
|
||||||
Total lease payments
|
$
|
37
|
$
|
33
|
|
Three Months
ended
September 30, 2019
|
Nine Months ended
September 30, 2019
|
||||||
ROU assets obtained in exchange for lease obligations:
|
||||||||
Operating leases obtained in the normal course of business
|
$
|
19
|
$
|
26
|
||||
Operating leases acquired in connection with Cristal acquisition
|
—
|
37
|
||||||
Finance leases (recorded in “Property, plant, and equipment, net”)
|
—
|
—
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Beginning balance
|
$
|
174
|
$
|
78
|
$
|
74
|
$
|
82
|
||||||||
Additions
|
—
|
1
|
3
|
5
|
||||||||||||
Accretion expense
|
3
|
1
|
7
|
4
|
||||||||||||
Remeasurement/translation
|
(7
|
)
|
—
|
(7
|
)
|
(5
|
)
|
|||||||||
Other, including change in estimates
|
(1
|
)
|
—
|
2
|
—
|
|||||||||||
Settlements/payments
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
(3
|
)
|
||||||||
Transferred with the divestiture of Ashtabula
|
—
|
—
|
(3
|
)
|
—
|
|||||||||||
Transferred in with the acquisition of Cristal
|
(6
|
)
|
—
|
88
|
—
|
|||||||||||
Transferred with the sale of Henderson Electrolytic
|
—
|
—
|
—
|
(4
|
)
|
|||||||||||
Balance, September 30,
|
$
|
162
|
$
|
79
|
$
|
162
|
$
|
79
|
|
September 30,
2019
|
December 31,
2018
|
||||||
Current portion included in “Accrued liabilities”
|
$
|
11
|
$
|
6
|
||||
Noncurrent portion included in “Asset retirement obligations”
|
151
|
68
|
||||||
Asset retirement obligations
|
$
|
162
|
$
|
74
|
18. |
Commitments and Contingencies
|
19. |
Accumulated Other Comprehensive Loss Attributable to Tronox Holdings plc
|
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains
(Losses) on
Hedges
|
Total
|
||||||||||||
Balance, June 30, 2019
|
$
|
(499
|
)
|
$
|
(94
|
)
|
$
|
(23
|
)
|
$
|
(616
|
)
|
||||
Other comprehensive loss
|
(65
|
)
|
—
|
(5
|
)
|
(70
|
)
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
—
|
—
|
—
|
||||||||||||
Balance, September 30, 2019
|
$
|
(564
|
)
|
$
|
(94
|
)
|
$
|
(28
|
)
|
$
|
(686
|
)
|
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains
(Losses) on
Hedges
|
Total
|
||||||||||||
Balance, June 30, 2018
|
$
|
(407
|
)
|
$
|
(88
|
)
|
$
|
(1
|
)
|
$
|
(496
|
)
|
||||
Other comprehensive loss
|
(24
|
)
|
—
|
1
|
(23
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||
Balance, September 30, 2018
|
$
|
(431
|
)
|
$
|
(91
|
)
|
$
|
—
|
$
|
(522
|
)
|
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains
(Losses) on
Hedges
|
Total
|
||||||||||||
Balance, January 1, 2019
|
$
|
(445
|
)
|
$
|
(95
|
)
|
$
|
—
|
$
|
(540
|
)
|
|||||
Other comprehensive loss
|
(58
|
)
|
—
|
(28
|
)
|
(86
|
)
|
|||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
1
|
—
|
1
|
||||||||||||
Acquisition of noncontrolling interest
|
(61
|
)
|
—
|
—
|
(61
|
)
|
||||||||||
Balance, September 30, 2019
|
$
|
(564
|
)
|
$
|
(94
|
)
|
$
|
(28
|
)
|
$
|
(686
|
)
|
|
Cumulative
Translation
Adjustment
|
Pension
Liability
Adjustment
|
Unrealized
Gains
(Losses) on
Hedges
|
Total
|
||||||||||||
Balance, January 1, 2018
|
$
|
(312
|
)
|
$
|
(90
|
)
|
$
|
(1
|
)
|
$
|
(403
|
)
|
||||
Other comprehensive loss
|
(119
|
)
|
—
|
1
|
(118
|
)
|
||||||||||
Amounts reclassified from accumulated other comprehensive income
|
—
|
(1
|
)
|
—
|
(1
|
)
|
||||||||||
Balance, September 30, 2018
|
$
|
(431
|
)
|
$
|
(91
|
)
|
$
|
—
|
$
|
(522
|
)
|
20. |
Share-Based Compensation
|
21. |
Repurchase of Common Stock
|
22. |
Pension and Other Postretirement Healthcare Benefits
|
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
||||||||||||||
|
2019
|
2018
|
2019
|
2018
|
||||||||||||
Net periodic cost:
|
||||||||||||||||
Service cost
|
$
|
1
|
$
|
—
|
$
|
2
|
$
|
—
|
||||||||
Interest cost
|
6
|
3
|
15
|
10
|
||||||||||||
Expected return on plan assets
|
(6
|
)
|
(3
|
)
|
(16
|
)
|
(11
|
)
|
||||||||
Net amortization of actuarial loss and prior service credit
|
—
|
—
|
1
|
2
|
||||||||||||
Total net periodic cost
|
$
|
1
|
$
|
—
|
$
|
2
|
$
|
1
|
23. |
Related Parties
|
24. |
Segment Information
|
• |
operational enhancements through, among other things, technology exchange, optimization of feedstock cost at pigment plants and performance improvements at the Yanbu plant in Saudi Arabia;
|
• |
feedstock initiatives including, among other things, maximizing synthetic rutile kiln and slag output, reduction in freight costs and the utilization of diverse feedstock supply globally which minimizes production risk in tight supply markets;
|
• |
supply chain savings from, among other things, reduced distribution costs, optimization of our grade portfolio and the leveraging of volume discounts; and
|
• |
reductions in selling, general and administrative expenses primarily from employee-related costs and indirect spend consolidation.
|
Reported Amounts
|
Pro Forma Amounts (1)
|
|||||||||||||||||||||||
Three Months Ended September 30,
|
Three Months Ended September 30,
|
|||||||||||||||||||||||
2019
|
2018
|
Variance
|
2019
|
2018
|
Variance
|
|||||||||||||||||||
Net sales
|
$
|
768
|
$
|
456
|
$
|
312
|
$
|
768
|
$
|
832
|
$
|
(64
|
)
|
|||||||||||
Cost of goods sold
|
635
|
335
|
300
|
595
|
620
|
(25
|
)
|
|||||||||||||||||
Gross profit
|
133
|
121
|
12
|
173
|
212
|
(39
|
)
|
|||||||||||||||||
Gross Margin
|
17
|
%
|
27
|
%
|
(10) pts
|
23
|
%
|
25
|
%
|
(2) pts
|
||||||||||||||
Selling, general and administrative expenses
|
82
|
62
|
(20
|
)
|
82
|
91
|
9
|
|||||||||||||||||
Restructuring
|
3
|
—
|
(3
|
)
|
3
|
—
|
(3
|
)
|
||||||||||||||||
Impairment loss
|
—
|
6
|
6
|
—
|
6
|
6
|
||||||||||||||||||
Income from operations
|
48
|
53
|
(5
|
)
|
88
|
115
|
(27
|
)
|
||||||||||||||||
Interest expense
|
(51
|
)
|
(47
|
)
|
(4
|
)
|
(51
|
)
|
(53
|
)
|
2
|
|||||||||||||
Interest income
|
4
|
8
|
(4
|
)
|
4
|
3
|
1
|
|||||||||||||||||
Other (expense) income, net
|
(1
|
)
|
7
|
(8
|
)
|
(1
|
)
|
(2
|
)
|
1
|
||||||||||||||
Income (loss) from continuing operations before income taxes
|
—
|
21
|
(21
|
)
|
40
|
63
|
(23
|
)
|
||||||||||||||||
Income tax (provision) benefit
|
(12
|
)
|
(6
|
)
|
(6
|
)
|
(14
|
)
|
(22
|
)
|
8
|
|||||||||||||
Net (loss) income from continuing operations
|
$
|
(12
|
)
|
$
|
15
|
$
|
(27
|
)
|
$
|
26
|
$
|
41
|
$
|
(15
|
)
|
|||||||||
Effective tax rate
|
N/A
|
29
|
%
|
—
|
35
|
%
|
35
|
%
|
—
|
|||||||||||||||
EBITDA (2)
|
$
|
121
|
$
|
108
|
$
|
13
|
$
|
161
|
$
|
205
|
$
|
(44
|
)
|
|||||||||||
Adjusted EBITDA (2)
|
$
|
184
|
$
|
128
|
$
|
56
|
$
|
184
|
$
|
215
|
$
|
(31
|
)
|
|||||||||||
Adjusted EBITDA as% of Net Sales
|
24
|
%
|
28
|
%
|
(4) pts
|
24
|
%
|
26
|
%
|
(2) pts
|
(1) |
The pro forma amounts have been prepared on a basis consistent with Article 11 of Regulation S-X. See “Supplemental Pro Forma Information” section of the MD&A for further detail.
|
(2) |
EBITDA and Adjusted EBITDA are Non-U.S. GAAP financial measures. Please refer to the “Non-U.S. GAAP Financial Measures” section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of these measures and a reconciliation of these measures to Net income (loss) from operations.
|
Three Months Ended
September 30,
|
||||||||||||||||
(Millions of dollars)
|
2019
|
2018
|
Variance
|
Percentage
|
||||||||||||
TiO2
|
$
|
603
|
$
|
307
|
$
|
296
|
96
|
%
|
||||||||
Zircon
|
68
|
72
|
(4
|
)
|
(6
|
)%
|
||||||||||
Feedstock and other products
|
97
|
67
|
30
|
45
|
%
|
|||||||||||
Electrolytic
|
—
|
10
|
(10
|
)
|
(100
|
)%
|
||||||||||
Total net sales
|
$
|
768
|
$
|
456
|
$
|
312
|
68
|
%
|
Three Months Ended
September 30,
|
||||||||||||||||
(Millions of dollars)
|
2019
|
2018
|
Variance
|
Percentage
|
||||||||||||
TiO2
|
$
|
603
|
$
|
629
|
$
|
(26
|
)
|
(4
|
)%
|
|||||||
Zircon
|
68
|
104
|
(36
|
)
|
(35
|
)%
|
||||||||||
Feedstock and other products
|
97
|
89
|
8
|
9
|
%
|
|||||||||||
Electrolytic
|
—
|
10
|
(10
|
)
|
(100
|
)%
|
||||||||||
Total net sales
|
$
|
768
|
$
|
832
|
$
|
(64
|
)
|
(8
|
)%
|
• |
the unfavorable impact of 5 points due to the value of the inventory, property, plant and equipment and mineral leaseholds of Cristal being stepped up to fair value on the acquisition date, which resulted in the recognition of higher expense in the third quarter;
|
• |
the inclusion of Cristal’s results beyond the purchase accounting impact above, which operates at a lower gross margin than legacy Tronox, which reduced gross margin by 5 points; and
|
• |
the unfavorable impact of one point on gross margin for volume, product mix and sales prices.
|
• |
the unfavorable impact of 3 points caused by a decrease in TiO2 selling prices;
|
• |
the unfavorable impact of 2 points due to volume and product mix; and
|
• |
one point reduction from higher costs of production primarily caused by a legacy Cristal mine being nonoperational for most of the third quarter of 2019 and lower production volumes in our pigment facility in the Netherlands. These increases to production costs were partially offset by an $8 million benefit from the reclamation of previously paid value added taxes in Brazil.
|
Reported Amounts
|
Pro Forma Amounts (1)
|
|||||||||||||||||||||||
Nine Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||||||||||||
2019
|
2018
|
Variance
|
2019
|
2018
|
Variance
|
|||||||||||||||||||
Net sales
|
$
|
1,949
|
$
|
1,390
|
$
|
559
|
$
|
2,315
|
$
|
2,611
|
$
|
(296
|
)
|
|||||||||||
Cost of goods sold
|
1,614
|
1,010
|
604
|
1,825
|
2,049
|
(224
|
)
|
|||||||||||||||||
Contract loss
|
19
|
—
|
19
|
—
|
—
|
—
|
||||||||||||||||||
Gross profit
|
316
|
380
|
(64
|
)
|
490
|
562
|
(72
|
)
|
||||||||||||||||
Gross Margin
|
16
|
%
|
27
|
%
|
(11) pts
|
21
|
%
|
22
|
%
|
(1) pt
|
||||||||||||||
Selling, general and administrative expenses
|
252
|
217
|
(35
|
)
|
260
|
225
|
(35
|
)
|
||||||||||||||||
Restructuring
|
13
|
—
|
(13
|
)
|
13
|
—
|
(13
|
)
|
||||||||||||||||
Impairment loss
|
—
|
31
|
31
|
—
|
31
|
31
|
||||||||||||||||||
Income from operations
|
51
|
132
|
(81
|
)
|
217
|
306
|
(89
|
)
|
||||||||||||||||
Interest expense
|
(154
|
)
|
(144
|
)
|
(10
|
)
|
(160
|
)
|
(157
|
)
|
(3
|
)
|
||||||||||||
Interest income
|
16
|
23
|
(7
|
)
|
10
|
9
|
1
|
|||||||||||||||||
Loss on extinguishment of debt
|
(2
|
)
|
(30
|
)
|
28
|
(2
|
)
|
(30
|
)
|
28
|
||||||||||||||
Other income (expense), net
|
2
|
27
|
(25
|
)
|
(10
|
)
|
9
|
(19
|
)
|
|||||||||||||||
(Loss) income from continuing operations before income taxes
|
(87
|
)
|
8
|
(95
|
)
|
55
|
137
|
(82
|
)
|
|||||||||||||||
Income tax (provision) benefit
|
(10
|
)
|
16
|
(26
|
)
|
(26
|
)
|
—
|
(26
|
)
|
||||||||||||||
Net (loss) income from continuing operations
|
$
|
(97
|
)
|
$
|
24
|
$
|
(121
|
)
|
$
|
29
|
$
|
137
|
$
|
(108
|
)
|
|||||||||
Effective tax rate
|
(11
|
)%
|
(200
|
)%
|
189 pts
|
47
|
%
|
—
|
(47) pts
|
|||||||||||||||
EBITDA (2)
|
$
|
256
|
$
|
274
|
$
|
(18
|
)
|
$
|
454
|
$
|
547
|
$
|
(93
|
)
|
||||||||||
Adjusted EBITDA (21)
|
$
|
459
|
$
|
393
|
$
|
66
|
$
|
525
|
$
|
706
|
$
|
(181
|
)
|
|||||||||||
Adjusted EBITDA as% of Net Sales
|
24
|
%
|
28
|
%
|
(4) pts
|
23
|
%
|
27
|
%
|
(4) pts
|
(1) |
The pro forma amounts have been prepared on a basis consistent with Article 11 of Regulation S-X. See “Supplemental Pro Forma Information” section of the MD&A for further detail.
|
(2) |
EBITDA and Adjusted EBITDA are Non-U.S. GAAP financial measures. Please refer to the “Non-U.S. GAAP Financial Measures” section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations for a discussion of these measures and a reconciliation of these measures to Net income (loss) from operations.
|
Nine Months Ended
September 30,
|
||||||||||||||||
(Millions of dollars)
|
2019
|
2018
|
Variance
|
Percentage
|
||||||||||||
TiO2
|
$
|
1,505
|
$
|
978
|
$
|
527
|
54
|
%
|
||||||||
Zircon
|
220
|
211
|
9
|
4
|
%
|
|||||||||||
Feedstock and other products
|
224
|
164
|
60
|
37
|
%
|
|||||||||||
Electrolytic
|
—
|
37
|
(37
|
)
|
(100
|
)%
|
||||||||||
Total net sales
|
$
|
1,949
|
$
|
1,390
|
$
|
559
|
40
|
%
|
Nine Months Ended
September 30,
|
||||||||||||||||
(Millions of dollars)
|
2019
|
2018
|
Variance
|
Percentage
|
||||||||||||
TiO2
|
$
|
1.830
|
$
|
2,040
|
$
|
(210
|
)
|
(10
|
)%
|
|||||||
Zircon
|
239
|
299
|
(60
|
)
|
(20
|
)%
|
||||||||||
Feedstock and other products
|
246
|
235
|
11
|
5
|
%
|
|||||||||||
Electrolytic
|
—
|
37
|
(37
|
)
|
(100
|
)%
|
||||||||||
Total net sales
|
$
|
2,315
|
$
|
2,611
|
$
|
(296
|
)
|
(11
|
)%
|
• |
the unfavorable impact of 5 points due to the value of the inventory, property, plant and equipment and mineral leaseholds of Cristal being stepped up to fair value on the acquisition date, which resulted in the recognition of higher expense in the current year period;
|
• |
a negative impact of $83 million, or 4 points, due to higher costs of production primarily ore, process materials, and energy. The 4 point unfavorable impact due to higher costs of direct materials includes a $9 million in costs of goods sold due to receipt of a refund in the prior year from the South African Ministry of Finance of mineral extraction royalties. These increases to production costs were partially offset by an $8 million benefit from the reclamation of previously paid value added taxes in Brazil;
|
• |
the inclusion of Cristal’s results beyond the purchase accounting impact above, which operates at a lower gross margin than legacy Tronox, lowered gross margin by 4 points;
|
• |
and a 1 point unfavorable impact on gross margin of volume and product mix related to our legacy Tronox’s operations.
|
• |
the unfavorable impact of 3 points due to volume and product mix;
|
• |
the unfavorable impact of 2 points caused by a decrease in TiO2 selling prices; and
|
• |
the unfavorable impact of 1 point of foreign currency on sales due to the Euro.
|
September 30, 2019
|
December 31, 2018
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Cash and cash equivalents
|
$
|
305
|
$
|
1,034
|
||||
Available under the Wells Fargo Revolver
|
240
|
197
|
||||||
Available under the Standard Bank Revolver
|
66
|
—
|
||||||
Available under the Emirates Revolver
|
50
|
—
|
||||||
Available under the ABSA Revolver
|
—
|
52
|
||||||
Total
|
$
|
661
|
$
|
1,283
|
Nine Months Ended September 30,
|
||||||||
2019
|
2018
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Net cash provided by operating activities
|
$
|
237
|
$
|
143
|
||||
Net cash used in investing activities
|
(1,120
|
)
|
(121
|
)
|
||||
Net cash used in financing activities
|
(517
|
)
|
(34
|
)
|
||||
Net cash provided by discontinued operations
|
28
|
—
|
||||||
Effect of exchange rate changes on cash
|
(8
|
)
|
(21
|
)
|
||||
Net decrease in cash and cash equivalents
|
$
|
(1,380
|
)
|
$
|
(33
|
)
|
Nine Months Ended September 30,
|
||||||||
2019
|
2018
|
|||||||
(Millions of U.S. dollars)
|
||||||||
Net (loss) income from continuing operations
|
$
|
(97
|
)
|
$
|
24
|
|||
Adjustments for non-cash items
|
364
|
193
|
||||||
Income related cash generation
|
267
|
217
|
||||||
Net change in assets and liabilities (“working capital changes”)
|
(30
|
)
|
(74
|
)
|
||||
Net cash provided by our operating activities
|
$
|
237
|
$
|
143
|
Contractual Obligation
Payments Due by Year (3)(4) |
||||||||||||||||||||
Total
|
Less than
1 year |
1-3
years |
3-5
years |
More than
5 years |
||||||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||||||
Long-term debt, net and lease financing (including interest) (1)
|
$
|
4,099
|
231
|
467
|
2,231
|
1,170
|
||||||||||||||
Purchase obligations (2)
|
503
|
209
|
128
|
80
|
86
|
|||||||||||||||
Operating leases
|
116
|
22
|
65
|
18
|
11
|
|||||||||||||||
Asset retirement obligations
|
162
|
12
|
34
|
20
|
96
|
|||||||||||||||
Total
|
$
|
4,880
|
474
|
694
|
2,349
|
1,363
|
(1) |
We calculated the Term Loan interest at a base rate of 2.2% plus a margin of 2.75%. See Note 13 of notes to our unaudited condensed consolidated financial statements.
|
(2) |
Includes obligations for purchase requirements of process chemicals, supplies, utilities and services. We have various purchase commitments for materials, supplies, and services entered into in the ordinary course of business. Included in the purchase commitments table above are contracts, which require minimum volume purchases that extend beyond one year or are renewable annually and have been renewed for 2019. Certain contracts allow for changes in minimum required purchase volumes in the event of a temporary or permanent shutdown of a facility. We believe that all of our purchase obligations will be utilized in our normal operations.
|
(3) |
The table excludes contingent obligations, as well as any possible payments for uncertain tax positions given the inability to estimate the possible amounts and timing of any such payments.
|
(4) |
The table excludes commitments pertaining to our pension and other postretirement obligations.
|
• |
reflect our ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in our business, as they exclude income and expense that are not reflective of ongoing operating results;
|
• |
provide useful information in understanding and evaluating our operating results and comparing financial results across periods; and
|
• |
provide a normalized view of our operating performance by excluding items that are either noncash or infrequently occurring.
|
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||
Net (loss) income (U.S. GAAP)
|
$
|
(6
|
)
|
$
|
15
|
$
|
(92
|
)
|
$
|
24
|
||||||
Income from discontinued operations, net of tax (see Note 2) (U.S. GAAP)
|
6
|
—
|
5
|
—
|
||||||||||||
Net (loss) income from continuing operations (U.S. GAAP)
|
(12
|
)
|
15
|
(97
|
)
|
24
|
||||||||||
Interest expense
|
51
|
47
|
154
|
144
|
||||||||||||
Interest income
|
(4
|
)
|
(8
|
)
|
(16
|
)
|
(23
|
)
|
||||||||
Income tax provision (benefit)
|
12
|
6
|
10
|
(16
|
)
|
|||||||||||
Depreciation, depletion and amortization expense
|
74
|
48
|
205
|
145
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
121
|
108
|
256
|
274
|
||||||||||||
Inventory step-up (a)
|
40
|
—
|
95
|
—
|
||||||||||||
Impairment loss (b)
|
—
|
6
|
—
|
31
|
||||||||||||
Contract loss (c)
|
—
|
—
|
19
|
—
|
||||||||||||
Share-based compensation (d)
|
9
|
7
|
24
|
16
|
||||||||||||
Transaction costs (e)
|
—
|
12
|
29
|
59
|
||||||||||||
Restructuring (f)
|
3
|
—
|
13
|
—
|
||||||||||||
Integration Costs (g)
|
4
|
—
|
8
|
—
|
||||||||||||
Loss on extinguishment of debt (h)
|
—
|
—
|
2
|
30
|
||||||||||||
Foreign currency remeasurement (i)
|
(1
|
)
|
(4
|
)
|
(5
|
)
|
(22
|
)
|
||||||||
Settlement gain (j)
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||
Charge for potential capital gains tax payment to Exxaro (k)
|
4
|
—
|
6
|
—
|
||||||||||||
Other items (l)
|
4
|
2
|
12
|
8
|
||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
184
|
$
|
128
|
$
|
459
|
$
|
393
|
(a) |
Represents a pre-tax charge related to the recognition of a step-up in value of inventories as a result of purchase accounting.
|
(b) |
Represents a pre-tax charge for the impairment and loss on sale of the assets of our Tronox Electrolytic Operations which was recorded in “Impairment loss” in the unaudited Condensed Consolidated Statements of Operations. See Note 5 of Notes to unaudited condensed consolidated financial statements.
|
(c) |
Represents a pre-tax charge for the estimated losses we expect to incur under the supply agreement with Venator. See Note 2 of notes to unaudited condensed consolidated financial statements.
|
(d) |
Represents non-cash share-based compensation. See Note 20 of notes to unaudited condensed consolidated financial statements.
|
(e) |
Represents transaction costs associated with the Cristal Transaction which were recorded in “Selling, general and administrative expenses” in the unaudited Condensed Consolidated Statements of Operations.
|
(f) |
Represents amounts for employee-related costs, including severance. See Note 3 of notes to unaudited condensed consolidated financial statements.
|
(g) |
Represents integration costs associated with the Cristal acquisition after the acquisition which were recorded in “Selling, general and administrative expenses” in the unaudited Condensed Consolidated Statements of Operations.
|
(h) |
2019 amounts represent the loss in connection with the modification of the Wells Fargo Revolver and termination of the ABSA Revolver. See Note 13 of notes to unaudited condensed consolidated financial statements. 2018 amounts represent debt extinguishment costs associated with the issuance of our 2026 Senior Notes and redemption of our Senior Notes due 2022.
|
(i) |
Represents realized and unrealized gains and losses associated with foreign currency remeasurement related to third-party and intercompany receivables and liabilities denominated in a currency other than the functional currency of the entity holding them, which are included in “Other expense, net” in the unaudited Condensed Consolidated Statements of Operations. Prior to the first quarter of 2019, realized gains and losses associated with third party receivables and liabilities had been included in Adjusted EBITDA. Commencing with 2019, we are now excluding these amounts from Adjusted EBITDA and prior period amounts have been revised for comparability purposes. The exclusion of all of the realized and unrealized gains and losses is consistent with the reporting of Adjusted EBITDA we make to our lenders.
|
(j) |
Represents settlement gain related to the former U.S. postretirement medical plan.
|
(k) |
Represents the potential payment to Exxaro for capital gains tax on the disposal of its ordinary shares in Tronox Holdings plc included in and “Other income (expense), net” in the unaudited Condensed Consolidated Statements of Operations.
|
(l) |
Includes noncash pension and postretirement costs, accretion expense and other items included in “Selling general and administrative expenses”, “Cost of goods sold” and “Other income (expense), net” in the unaudited Condensed Consolidated Statements of Operations.
|
Pro Forma
|
Pro Forma
|
|||||||||||||||
Three Months Ended
September 30,
|
Nine Months Ended
September 30,
|
|||||||||||||||
2019
|
2018
|
2019
|
2018
|
|||||||||||||
(Millions of U.S. dollars)
|
||||||||||||||||
Net income (loss) from continuing operations (U.S. GAAP)
|
$
|
26
|
$
|
41
|
$
|
29
|
$
|
137
|
||||||||
Interest expense
|
51
|
53
|
160
|
157
|
||||||||||||
Interest income
|
(4
|
)
|
(3
|
)
|
(10
|
)
|
(9
|
)
|
||||||||
Income tax (benefit) provision
|
14
|
22
|
26
|
—
|
||||||||||||
Depreciation, depletion and amortization expense
|
74
|
92
|
249
|
262
|
||||||||||||
EBITDA (non-U.S. GAAP)
|
161
|
205
|
454
|
547
|
||||||||||||
Inventory step-up
|
—
|
—
|
—
|
95
|
||||||||||||
Impairment loss
|
—
|
6
|
—
|
31
|
||||||||||||
Share-based compensation
|
9
|
7
|
24
|
16
|
||||||||||||
Restructuring
|
3
|
—
|
13
|
—
|
||||||||||||
Integration Costs
|
4
|
—
|
8
|
—
|
||||||||||||
Loss on extinguishment of debt
|
—
|
—
|
2
|
30
|
||||||||||||
Foreign currency remeasurement
|
(1
|
)
|
(2
|
)
|
(5
|
)
|
(18
|
)
|
||||||||
Settlement gain
|
—
|
(3
|
)
|
—
|
(3
|
)
|
||||||||||
Charge for potential capital gains tax payment to Exxaro
|
4
|
—
|
6
|
—
|
||||||||||||
Other items
|
4
|
2
|
23
|
8
|
||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
184
|
$
|
215
|
$
|
525
|
$
|
706
|
(1) |
conforming the accounting policies of Cristal to those applied by Tronox;
|
(2) |
conversion to U.S. GAAP from IFRS for Cristal;
|
(3) |
the elimination of transactions between Tronox and Cristal;
|
(4) |
recording certain incremental expenses resulting from purchase accounting adjustments, such as inventory step-up amortization, depreciation, depletion and amortization expense in connection with fair value adjustments to property, plant and equipment, mineral leases and intangible assets;
|
(5) |
recording the contract loss on the sale of the 8120 product line as a charge in the first quarter of 2018;
|
(6) |
recording the effect on interest expense related to borrowings in connection with the Cristal Transaction; and
|
(7) |
recording the related tax effects and impacts to EPS for the shares issued in conjunction with the transaction.
|
• |
Pro forma statement of operations for both the three and nine months ended September 30, 2019 and 2018
|
• |
Pro forma Adjusted EBITDA for both the three and nine months ended September 30, 2019 and 2018
|
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal
|
Other
|
Total
|
Pro Forma
|
|||||||||||||||||
Net sales
|
$
|
768
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
768
|
|||||||||||
Cost of goods sold
|
635
|
—
|
(40
|
)
|
(a)
|
(40
|
)
|
595
|
|||||||||||||
Gross profit
|
133
|
—
|
40
|
40
|
173
|
||||||||||||||||
Selling, general and administrative expenses
|
82
|
—
|
—
|
—
|
82
|
||||||||||||||||
Restructuring
|
3
|
—
|
—
|
—
|
3
|
||||||||||||||||
Income from operations
|
48
|
—
|
40
|
40
|
88
|
||||||||||||||||
Interest expense
|
(51
|
)
|
—
|
—
|
—
|
(51
|
)
|
||||||||||||||
Interest income
|
4
|
—
|
—
|
—
|
4
|
||||||||||||||||
Other expense, net
|
(1
|
)
|
—
|
—
|
—
|
(1
|
)
|
||||||||||||||
Income from continuing operations before income taxes
|
—
|
—
|
40
|
40
|
40
|
||||||||||||||||
Income tax (provision) benefit
|
(12
|
)
|
—
|
2
|
2
|
(14
|
)
|
||||||||||||||
(Loss) income from continuing operations
|
(12
|
)
|
—
|
38
|
38
|
26
|
|||||||||||||||
Net income attributable to noncontrolling interest
|
7
|
—
|
—
|
—
|
7
|
||||||||||||||||
Net (loss) income from continuing operations attributable to Tronox Holdings plc
|
$
|
(19
|
)
|
$
|
—
|
$
|
38
|
$
|
38
|
$
|
19
|
||||||||||
Net (loss) income from continuing operations per share, basic
|
$
|
(0.13
|
)
|
$
|
0.13
|
||||||||||||||||
Net (loss) income from continuing operations per share, diluted
|
$
|
(0.13
|
)
|
$
|
0.13
|
||||||||||||||||
Weighted average shares outstanding, basic (in thousands)
|
142,278
|
—
|
142,278
|
||||||||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
142,278
|
—
|
142,984
|
(a) |
The adjustment to cost of goods sold is for the reversal of $40 million related to the amortizing of the stepped-up in value of inventory. For pro forma purposes this item is pushed back to 2018.
|
|
Pro Forma Adjustments
|
|||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (a)
|
Other
|
Total
|
Pro Forma
|
||||||||||||||||||
Net sales
|
$
|
456
|
$
|
395
|
$
|
(19
|
)
|
(b)
|
$
|
376
|
$
|
832
|
||||||||||
Cost of goods sold
|
335
|
288
|
(3
|
)
|
(c)
|
285
|
620
|
|||||||||||||||
Gross profit
|
121
|
107
|
(16
|
)
|
91
|
212
|
||||||||||||||||
Selling, general and administrative expenses
|
62
|
57
|
(28
|
)
|
(d)
|
29
|
91
|
|||||||||||||||
Impairment loss
|
6
|
—
|
—
|
—
|
6
|
|||||||||||||||||
Income from operations
|
53
|
50
|
12
|
62
|
115
|
|||||||||||||||||
Interest expense
|
(47
|
)
|
(5
|
)
|
(1
|
)
|
(e)
|
(6
|
)
|
(53
|
)
|
|||||||||||
Interest income
|
8
|
—
|
(5
|
)
|
(f)
|
(5
|
)
|
3
|
||||||||||||||
Other income (expense), net
|
7
|
(9
|
)
|
—
|
(9
|
)
|
(2
|
)
|
||||||||||||||
Income from continuing operations before income taxes
|
21
|
36
|
6
|
42
|
63
|
|||||||||||||||||
Income tax (provision) benefit
|
(6
|
)
|
(16
|
)
|
—
|
(16
|
)
|
(22
|
)
|
|||||||||||||
Income from continuing operations
|
15
|
20
|
6
|
26
|
41
|
|||||||||||||||||
Net income attributable to noncontrolling interest
|
9
|
3
|
—
|
3
|
12
|
|||||||||||||||||
Net income (loss) from continuing operations attributable to Tronox Holdings plc
|
$
|
6
|
$
|
17
|
$
|
6
|
$
|
23
|
$
|
29
|
||||||||||||
Net income from continuing operations per share, basic
|
$
|
0.05
|
$
|
0.18
|
||||||||||||||||||
Net income from continuing operations per share, diluted
|
$
|
0.05
|
$
|
0.18
|
||||||||||||||||||
Weighted average shares outstanding, basic (in thousands)
|
123,121
|
37,580
|
160,701
|
|||||||||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
126,302
|
37,580
|
163,882
|
(a) |
Includes results from continuing operations for Cristal for period of July 1, 2018 through September 30, 2018.
|
(b) |
The adjustment to net sales includes $17 million to eliminate sales between Tronox and Cristal and $2 million to eliminate revenue associated with the divestiture of the 8120 paper laminate product grade.
|
(c) |
The adjustment to cost of goods sold includes (i) a credit of $17 million for the elimination of sales between Tronox and Cristal, and (ii) a charge of $3 million for the increase in DD&A expense as a result of a fair value adjustments to property, plant and equipment, mineral leases and intangible assets, and (iii) a credit of $1 million for the elimination of the cost for a licensing arrangement between Tronox and Cristal. Cost of goods sold also includes a reclassification of expenses of $12 million from SG&A to cost of goods sold for distribution costs as part of our accounting policy alignment.
|
(d) |
The adjustment to SG&A includes the elimination of $16 million in non-recurring acquisition-related transaction costs incurred and the reclassification of $12 million in expenses from SG&A to cost of goods sold.
|
(e) |
The adjustment to interest expense of $1 million reflects interest incurred on incremental borrowings under the Wells Fargo Revolver used to close the Cristal acquisition.
|
(f) |
The adjustment to interest income of $5 million reflects the elimination of interest earned on cash balances that were used to acquire Cristal.
|
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (a)
|
Other
|
Total
|
Pro Forma
|
|||||||||||||||||
Net sales
|
$
|
1,949
|
$
|
379
|
$
|
(13
|
)
|
(b)
|
$
|
366
|
$
|
2,315
|
|||||||||
Cost of goods sold
|
1,614
|
294
|
(83
|
)
|
(c)
|
211
|
1,825
|
||||||||||||||
Contract loss
|
19
|
—
|
(19
|
)
|
(d)
|
(19
|
)
|
—
|
|||||||||||||
Gross profit
|
316
|
85
|
89
|
174
|
490
|
||||||||||||||||
Selling, general and administrative expenses
|
252
|
59
|
(51
|
)
|
(e)
|
8
|
260
|
||||||||||||||
Restructuring
|
13
|
—
|
—
|
—
|
13
|
||||||||||||||||
Income from operations
|
51
|
26
|
140
|
166
|
217
|
||||||||||||||||
Interest expense
|
(154
|
)
|
(5
|
)
|
(1
|
)
|
(f)
|
(6
|
)
|
(160
|
)
|
||||||||||
Interest income
|
16
|
—
|
(6
|
)
|
(g)
|
(6
|
)
|
10
|
|||||||||||||
Loss on extinguishment of debt
|
(2
|
)
|
—
|
—
|
—
|
(2
|
)
|
||||||||||||||
Other income (expense), net
|
2
|
(1
|
)
|
(11
|
)
|
(h)
|
(12
|
)
|
(10
|
)
|
|||||||||||
(Loss) income from continuing operations before income taxes
|
(87
|
)
|
20
|
122
|
142
|
55
|
|||||||||||||||
Income tax (provision) benefit
|
(10
|
)
|
(4
|
)
|
(12
|
)
|
(16
|
)
|
(26
|
)
|
|||||||||||
(Loss) income from continuing operations
|
(97
|
)
|
16
|
110
|
126
|
29
|
|||||||||||||||
Net income attributable to noncontrolling interest
|
17
|
1
|
—
|
1
|
18
|
||||||||||||||||
Net (loss) income from continuing operations attributable to Tronox Holdings plc
|
$
|
(114
|
)
|
$
|
15
|
$
|
110
|
$
|
125
|
$
|
11
|
||||||||||
Net (loss) from continuing operations per share, basic
|
$
|
(0.82
|
)
|
$
|
0.07
|
||||||||||||||||
Net (loss) from continuing operations per share, diluted
|
$
|
(0.82
|
)
|
$
|
0.07
|
||||||||||||||||
Weighted average shares outstanding, basic (in thousands)
|
139,158
|
13,628
|
152,786
|
||||||||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
140,288
|
13,628
|
153,916
|
(a) |
Includes results from continuing operations for Cristal for period of January 1, 2019 through April 9, 2019. Acquisition closed on April 10, 2019.
|
(b) |
The adjustment to net sales includes $11 million to eliminate sales between Tronox and Cristal and $2 million to eliminate revenue associated with the divestiture of the 8120 paper laminate product grade.
|
(c) |
The adjustment to cost of goods sold includes (i) a credit of $11 million for the elimination of sales between Tronox and Cristal, (ii) a charge of $2 million for the increase in DD&A expense as a result of a fair value adjustments to property, plant and equipment, mineral leases and intangible assets, and (iii) a credit of $95 million related to the amortizing of the stepped-up in value of inventory. For pro forma purposes this item is pushed back to 2018. Cost of goods sold also includes a reclassification of expenses of $21 million from SG&A to cost of goods sold for distribution costs as part of our accounting policy alignment.
|
(d) |
The adjustment is for the elimination of $19 million in non-recurring contract losses incurred on the 8120 supply agreement with Venator.
|
(e) |
The adjustment to SG&A includes the elimination of $30 million in non-recurring acquisition-related transaction costs incurred and the reclassification of $21 million in expenses from SG&A to cost of goods sold.
|
(f) |
The adjustment to interest expense of $1 million reflects interest incurred on incremental borrowings under the Wells Fargo Revolver used to close the Cristal acquisition.
|
(g) |
The adjustment to interest income of $6 million reflects the elimination of interest earned on cash balances that were used to acquire Cristal.
|
(h) |
The adjustment to other income (expense), net reflects the reversal of actuarial pension gains recognized by Cristal under IFRS which are amortized under U.S. GAAP.
|
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (a)
|
Other
|
Total
|
Pro Forma
|
|||||||||||||||||
Net sales
|
$
|
1,390
|
$
|
1,263
|
$
|
(42
|
)
|
(b)
|
$
|
1,221
|
$
|
2,611
|
|||||||||
Cost of goods sold
|
1,010
|
907
|
132
|
(c)
|
1,039
|
2,049
|
|||||||||||||||
Gross profit
|
380
|
356
|
(174
|
)
|
182
|
562
|
|||||||||||||||
Selling, general and administrative expenses
|
217
|
145
|
(137
|
)
|
(d)
|
8
|
225
|
||||||||||||||
Impairment loss
|
31
|
—
|
—
|
—
|
31
|
||||||||||||||||
Income from operations
|
132
|
211
|
(37
|
)
|
(174
|
)
|
306
|
||||||||||||||
Interest expense
|
(144
|
)
|
(9
|
)
|
(4
|
)
|
(e)
|
(13
|
)
|
(157
|
)
|
||||||||||
Interest income
|
23
|
—
|
(14
|
)
|
(f)
|
(14
|
)
|
9
|
|||||||||||||
Loss on extinguishment of debt
|
(30
|
)
|
—
|
—
|
—
|
(30
|
)
|
||||||||||||||
Other income (expense), net
|
27
|
(18
|
)
|
—
|
(18
|
)
|
9
|
||||||||||||||
Income (loss) from continuing operations before income taxes
|
8
|
184
|
(55
|
)
|
129
|
137
|
|||||||||||||||
Income tax benefit (provision)
|
16
|
(23
|
)
|
7
|
(16
|
)
|
—
|
||||||||||||||
Income (loss) from continuing operations
|
24
|
161
|
(48
|
)
|
113
|
137
|
|||||||||||||||
Net income attributable to noncontrolling interest
|
26
|
6
|
—
|
6
|
32
|
||||||||||||||||
Net (loss) income from continuing operations attributable to Tronox Holdings plc
|
$
|
(2
|
)
|
$
|
155
|
$
|
(48
|
)
|
$
|
107
|
$
|
105
|
|||||||||
Net (loss) income from continuing operations per share, basic
|
$
|
(0.01
|
)
|
$
|
0.65
|
||||||||||||||||
Net (loss) income from continuing operations per share, diluted
|
$
|
(0.01
|
)
|
$
|
0.64
|
||||||||||||||||
Weighted average shares outstanding, basic (in thousands)
|
122,850
|
37,580
|
160,430
|
||||||||||||||||||
Weighted average shares outstanding, diluted (in thousands)
|
125,871
|
37,580
|
163,451
|
(a) |
Includes results from continuing operations for Cristal for period of January 1, 2018 through September 30, 2018.
|
(b) |
The adjustment to net sales includes $34 million to eliminate sales between Tronox and Cristal and $8 million to eliminate revenue associated with the divestiture of the 8120 paper laminate product grade.
|
(c) |
The adjustment to cost of goods sold includes (i) a credit of $34 million for the elimination of sales between Tronox and Cristal, (ii) a charge of $9 million for the increase in DD&A expense as a result of a fair value adjustments to property, plant and equipment, mineral leases and intangible assets, (iii) a charge of $95 million related to the recognition of a step-up in value of inventories, and (iv) a credit of $1 million for the elimination of the cost for a licensing arrangement between Tronox and Cristal. Cost of goods sold also includes a reclassification of expenses of $63 million from SG&A to cost of goods sold for distribution costs as part of our accounting policy alignment.
|
(d) |
The adjustment to SG&A includes the elimination of $74 million in non-recurring acquisition-related transaction costs incurred and the reclassification of $63 million in expenses from SG&A to cost of goods sold.
|
(e) |
The adjustment to interest expense of $4 million reflects interest incurred on incremental borrowings under the Wells Fargo Revolver used to close the Cristal acquisition.
|
(f) |
The adjustment to interest income of $14 million reflects the elimination of interest earned on cash balances that were used to acquire Cristal.
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal
|
Other
|
Total
|
Pro Forma
|
||||||||||||||||
Net (loss) income from continuing operations (U.S. GAAP)
|
$
|
(12
|
)
|
$
|
—
|
$
|
37
|
$
|
37
|
$
|
27
|
|||||||||
Interest expense
|
51
|
—
|
—
|
—
|
51
|
|||||||||||||||
Interest income
|
(4
|
)
|
—
|
—
|
—
|
(4
|
)
|
|||||||||||||
Income tax (benefit) provision
|
12
|
—
|
2
|
2
|
14
|
|||||||||||||||
Depreciation, depletion and amortization expense
|
74
|
—
|
—
|
—
|
74
|
|||||||||||||||
EBITDA (non-U.S. GAAP)
|
121
|
—
|
40
|
40
|
161
|
|||||||||||||||
Inventory step-up
|
40
|
—
|
(40
|
)
|
(40
|
)
|
—
|
|||||||||||||
Contract loss
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Share-based compensation
|
9
|
—
|
—
|
—
|
9
|
|||||||||||||||
Transaction costs
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Restructuring
|
3
|
—
|
—
|
—
|
3
|
|||||||||||||||
Integration Costs
|
4
|
—
|
—
|
—
|
4
|
|||||||||||||||
Foreign currency remeasurement
|
(1
|
)
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||||
Charge for potential capital gains tax payment to Exxaro
|
4
|
—
|
—
|
—
|
4
|
|||||||||||||||
Other items
|
4
|
—
|
—
|
—
|
4
|
|||||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
184
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
184
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (1)
|
Other
|
Total
|
Pro Forma
|
||||||||||||||||
Net income from continuing operations (U.S. GAAP)
|
$
|
15
|
$
|
20
|
$
|
6
|
$
|
26
|
$
|
41
|
||||||||||
Interest expense
|
47
|
5
|
1
|
6
|
53
|
|||||||||||||||
Interest income
|
(8
|
)
|
—
|
5
|
5
|
(3
|
)
|
|||||||||||||
Income tax provision
|
6
|
16
|
—
|
16
|
22
|
|||||||||||||||
Depreciation, depletion and amortization expense
|
48
|
41
|
3
|
44
|
92
|
|||||||||||||||
EBITDA (non-U.S. GAAP)
|
108
|
82
|
15
|
97
|
205
|
|||||||||||||||
Inventory step-up
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Impairment loss
|
6
|
—
|
—
|
—
|
6
|
|||||||||||||||
Share-based compensation
|
7
|
—
|
—
|
—
|
7
|
|||||||||||||||
Transaction costs
|
12
|
4
|
(16
|
)
|
(12
|
)
|
—
|
|||||||||||||
Foreign currency remeasurement
|
(4
|
)
|
2
|
—
|
2
|
(2
|
)
|
|||||||||||||
Settlement gain
|
(3
|
)
|
—
|
—
|
—
|
(3
|
)
|
|||||||||||||
Other items
|
2
|
—
|
—
|
—
|
2
|
|||||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
128
|
$
|
88
|
$
|
(1
|
)
|
$
|
87
|
$
|
215
|
(1) |
To include results from continuing operations for Cristal for period of July 1, 2018 through September 30, 2018.
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (1)
|
Other
|
Total
|
Pro Forma
|
||||||||||||||||
Net (loss) income from continuing operations (U.S. GAAP)
|
$
|
(97
|
)
|
$
|
16
|
$
|
110
|
$
|
126
|
$
|
29
|
|||||||||
Interest expense
|
154
|
5
|
1
|
6
|
160
|
|||||||||||||||
Interest income
|
(16
|
)
|
—
|
6
|
6
|
(10
|
)
|
|||||||||||||
Income tax provision
|
10
|
4
|
12
|
16
|
26
|
|||||||||||||||
Depreciation, depletion and amortization expense
|
205
|
42
|
2
|
44
|
249
|
|||||||||||||||
EBITDA (non-U.S. GAAP)
|
256
|
67
|
131
|
198
|
454
|
|||||||||||||||
Inventory step-up
|
95
|
—
|
(95
|
)
|
(95
|
)
|
—
|
|||||||||||||
Contract loss
|
19
|
—
|
(19
|
)
|
(19
|
)
|
—
|
|||||||||||||
Share-based compensation
|
24
|
—
|
—
|
—
|
24
|
|||||||||||||||
Transaction costs
|
29
|
1
|
(30
|
)
|
(29
|
)
|
—
|
|||||||||||||
Restructuring
|
13
|
—
|
—
|
—
|
13
|
|||||||||||||||
Integration costs
|
8
|
—
|
—
|
—
|
8
|
|||||||||||||||
Loss on extinguishment of debt
|
2
|
—
|
—
|
—
|
2
|
|||||||||||||||
Foreign currency remeasurement
|
(5
|
)
|
—
|
—
|
—
|
(5
|
)
|
|||||||||||||
Charge for potential capital gains tax payment to Exxaro
|
6
|
—
|
—
|
—
|
6
|
|||||||||||||||
Other items
|
12
|
—
|
11
|
11
|
23
|
|||||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
459
|
$
|
68
|
$
|
(2
|
)
|
$
|
66
|
$
|
525
|
(1) |
Includes results from continuing operations for Cristal of January 1, 2019 through April 9, 2019. Acquisition closed on April 10, 2019.
|
Pro Forma Adjustments
|
||||||||||||||||||||
Tronox
Holdings plc
|
Cristal (1)
|
Other
|
Total
|
Pro Forma
|
||||||||||||||||
Net income (loss) from continuing operations (U.S. GAAP)
|
$
|
24
|
$
|
161
|
$
|
(48
|
)
|
$
|
113
|
$
|
137
|
|||||||||
Interest expense
|
144
|
9
|
4
|
13
|
157
|
|||||||||||||||
Interest income
|
(23
|
)
|
—
|
14
|
14
|
(9
|
)
|
|||||||||||||
Income tax (benefit) provision
|
(16
|
)
|
23
|
(7
|
)
|
16
|
—
|
|||||||||||||
Depreciation, depletion and amortization expense
|
145
|
108
|
9
|
117
|
262
|
|||||||||||||||
EBITDA (non-U.S. GAAP)
|
274
|
301
|
(28
|
)
|
273
|
547
|
||||||||||||||
Impairment loss
|
31
|
—
|
—
|
—
|
31
|
|||||||||||||||
Inventory step-up
|
—
|
—
|
95
|
95
|
95
|
|||||||||||||||
Share-based compensation
|
16
|
—
|
—
|
—
|
16
|
|||||||||||||||
Transaction costs
|
59
|
15
|
(74
|
)
|
(59
|
)
|
—
|
|||||||||||||
Loss on extinguishment of debt
|
30
|
—
|
—
|
—
|
30
|
|||||||||||||||
Foreign currency remeasurement
|
(22
|
)
|
4
|
—
|
4
|
(18
|
)
|
|||||||||||||
Settlement gain
|
(3
|
)
|
—
|
—
|
—
|
(3
|
)
|
|||||||||||||
Other items
|
8
|
—
|
—
|
—
|
8
|
|||||||||||||||
Adjusted EBITDA (non-U.S. GAAP)
|
$
|
393
|
$
|
320
|
$
|
(7
|
)
|
$
|
313
|
$
|
706
|
(1) |
Includes results from continuing operations for Cristal for period of January 1, 2018 through September 30, 2018.
|
(a)
|
(b)
|
(c)
|
(d)
|
|||||||||||||
Period
|
Total Number
of Shares
Purchased
|
Average Price
Paid Per
Share
|
Total Number
of Shares
Purchased as
Part of
Publically
Announced
Plans or
Programs (1)
|
Approximate
Dollar Value
That May Yet
Be Purchased
Under the
Program (2)
|
||||||||||||
$
|
44,198,966
|
|||||||||||||||
July 1, 2019 through July 31, 2019
|
2,496,293
|
$
|
12.24
|
2,496,293
|
$
|
13,647,254
|
||||||||||
Totals
|
2,496,293
|
$
|
12.24
|
2,496,293
|
$
|
13,647,254
|
(1) |
On June 3, 2019, the Company’s Board of Directors authorized the repurchase of up to $100 million of the Company's stock.
|
(2) |
Amounts reflect the remaining dollar value of shares that may be purchased under the stock repurchase program described above. We did not complete the full program given certain Section 382 restrictions related to our NOLs
|
Exhibit No.
|
||
Offer letter, dated November 7, 2019 by and between Tronox Holdings plc and Timothy Carlson (filed herewith).
|
||
Rule 13a-14(a) Certification of Jeffry N. Quinn.
|
||
Rule 13a-14(a) Certification of Timothy Carlson.
|
||
Section 1350 Certification for Jeffry N. Quinn.
|
||
Section 1350 Certification for Timothy Carlson.
|
||
Third Supplemental Indenture dated as of August 30, 2019 among Tronox Finance plc, the guarantors named therein and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.1 of the Current Report on Form 8-K filed on September 3, 2019).
|
||
Third Supplemental Indenture dated as of August 30, 2019 among Tronox Incorporated, the guarantors named therein and Wilmington Trust, National Association, as trustee (incorporated by reference to Exhibit 4.2 of the Current Report on Form 8-K filed on September 3, 2019).
|
||
101
|
The following financial statements from Tronox Holdings plc. Quarterly Report on Form 10-Q for the quarter ended September 30, 2019, formatted in iXBRL (Inline eXtensible Business Reporting Language): (i) Condensed Consolidated Statements of Operations, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statements of Comprehensive Loss, (iv) Condensed Consolidated Statements of Changes in Equity, (v) Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements.
|
|
101.INS
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
101.SCH
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
101.CAL
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
101.DEF
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
101.LAB
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
|
101.PRE
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
104
|
The cover page from the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2019, which has been formatted in Inline XBRL and contained in Exhibit 101.
|
Date:
November 12, 2019
|
||
TRONOX HOLDINGS PLC (Registrant)
|
||
By:
|
/s/ Robert Loughran
|
|
Name:
|
Robert Loughran
|
|
Title:
|
Vice President, Corporate Controller
|
By:
|
/s/ Timothy Carlson
|
|
Name:
|
Timothy Carlson
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
Re:
|
Employment Offer Letter
|
Timothy C. Carlson Employment Offer Letter
7 November 2019
Page 2
|
|
/s/ Jeffry N. Quinn
|
/s/ Timothy C. Carlson
|
|
|
|
|
/s/ Jeffry N. Quinn
|
|
Jeffry N. Quinn
|
|
President and Chief Executive Officer
|
|
|
|
|
|
/s/ Timothy Carlson
|
|
Timothy Carlson
|
|
Senior Vice President and Chief Financial Officer
|
|
/s/ Jeffry N. Quinn
|
|
Jeffry N. Quinn
|
|
President and Chief Executive Officer
|
|
|
|
Timothy Carlson
|
|
Senior Vice President and Chief Financial Officer
|
|