NYSE$KRO

Kronos Worldwide Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Kronos Worldwide reported increased net sales and net income compared to the same quarter last year.

Kronos Worldwide, Inc. reported a significant increase in net income for Q3 2021, reaching $36.0 million, or $.31 per share, compared to $8.1 million, or $.07 per share, in Q3 2020. The increase was primarily driven by higher sales volumes and average TiO2 selling prices, although partially offset by increased production costs.

  • Net income increased to $36.0 million, or $.31 per share, compared to $8.1 million, or $.07 per share in Q3 2020.
  • Net sales rose to $499.8 million, a $82.9 million (20%) increase from Q3 2020.
  • TiO2 sales volumes increased by 6% compared to Q3 2020, driven by higher demand in European and North American markets.
  • Average TiO2 selling prices were 11% higher than in Q3 2020.

Headline financials

Total Revenue

$500M

Previous: $417M+19.9%
EPS (adj)

$0.31

Previous: $0.07+342.9%
EBITDA

$65.5M

No prior period
Capital Expenditures

-$35.9M

Previous: -$38.3M+6.3%
Free Cash Flow

$100K

Previous: -$30.2M+100.3%
Net Income

$36M

Previous: $8.1M+344.4%
Operating Income

$57.3M

Previous: $19.3M+196.9%
Gross Profit

$123M

Previous: $80.6M+52.6%
Cash & Equivalents

$374M

Previous: $348M+7.2%
Total Assets

$2B

Previous: $1.95B+3.0%

Revenue & EPS history

Kronos · Revenue · Quarterly

$500M

Q3 2021+19.9%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Kronos · -$14.8M total across 1 segment · Q1 2023

  • TiO2
    -$14.8M

Forward guidance

The statements in this release relating to matters that are not historical facts are forward-looking statements that represent management's beliefs and assumptions based on currently available information.

Tailwinds

  • Future supply and demand for our products
  • The extent of the dependence of certain of our businesses on certain market sectors
  • The cyclicality of our business
  • Customer and producer inventory levels
  • Unexpected or earlier-than-expected industry capacity expansion

Headwinds

  • Changes in raw material and other operating costs (such as energy and ore costs)
  • Changes in the availability of raw materials (such as ore)
  • General global economic and political conditions that harm the worldwide economy, disrupt our supply chain, increase material costs or reduce demand or perceived demand for our TiO2 products or impair our ability to operate our facilities (including changes in the level of gross domestic product in various regions of the world, natural disasters, terrorist acts, global conflicts and public health crises such as COVID-19)
  • Competitive products and substitute products
  • Customer and competitor strategies

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

-1.2%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+4.7%

Avg return

30 days after

44%

27 / 62 earnings

Positive

+19.7%

Q3 2016

Best reaction

-19.8%

Q2 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.9%-5.9%-17.6%
Q4 2025-3.3%-4.8%+20.3%
Q3 2025-7.0%+2.5%+0.2%
Q1 2025-2.0%+4.0%-10.1%
Q3 2024+4.6%-1.9%-12.9%
Q2 2024+0.5%+2.4%+2.7%
Q1 2024+4.1%+2.5%+9.4%
Q4 2023+15.7%+26.3%+38.9%
Q3 2023+14.5%+7.0%+31.5%
Q2 2023-6.9%-1.9%-10.1%
Q1 2023-8.9%-8.0%-3.5%
Q4 2022-13.2%-17.8%-18.1%
Q3 2022-7.9%-0.5%-3.3%
Q2 2022-6.2%-12.1%-27.4%
Q1 2022+1.2%-0.8%+21.6%
Q4 2021+8.6%+11.2%+11.6%
Q3 2021+4.3%+2.8%+3.2%
Q2 2021-6.3%-5.3%-6.7%
Q1 2021-0.1%-1.5%-7.1%
Q4 2020+1.1%-2.8%+4.9%
Q3 2020-0.4%+1.1%+8.1%
Q2 2020+5.4%+10.8%+11.9%
Q1 2020-5.6%+2.4%+20.5%
Q4 2019-12.6%-7.6%+16.0%
Q3 2019+7.6%+8.7%+2.3%
Q2 2019-5.8%-11.3%-4.8%
Q1 2019+2.4%+1.0%+8.5%
Q4 2018-4.8%-5.9%-2.9%
Q3 2018-15.2%-16.2%-26.6%
Q2 2018-0.3%-4.9%-11.8%
Q1 2018-6.0%-1.8%+4.5%
Q4 2017+0.0%-1.7%-3.9%
Q3 2017+0.5%+3.2%-3.0%
Q2 2017-11.5%-7.9%-0.9%
Q1 2017+7.8%+12.7%+8.4%
Q4 2016+7.1%+10.2%+16.7%
Q3 2016+19.7%+38.0%+57.0%
Q2 2016+12.5%+15.4%+51.0%
Q1 2016-3.0%
Q4 2015-2.3%
Q3 2015-14.4%
Q2 2015-19.8%
Q1 2015-9.4%
Q4 2014+7.8%
Q3 2014-0.9%
Q2 2014-0.7%
Q1 2014-4.7%
Q4 2013+8.0%
Q3 2013+2.1%
Q2 2013-2.5%
Q1 2013-3.0%
Q4 2012-2.1%
Q3 2012+2.1%
Q2 2012+4.4%
Q1 2012-11.1%
Q4 2011+0.8%
Q3 2011+2.7%
Q2 2011-19.2%
Q1 2011-4.7%
Q4 2010+3.6%
Q2 2010+7.8%
Q1 2010-5.2%

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