NYSE$TROX

Tronox Holdings PLC · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Tronox's first quarter results exceeded preliminary expectations, with strong performance driven by geographic diversity and acquisition synergies.

Tronox reported revenue of $722 million, net income of $40 million, and adjusted EBITDA of $174 million for Q1 2020. The company's results were driven by geographic diversity, favorable end market exposure and Cristal acquisition synergies.

  • Revenue of $722 million.
  • Income from operations of $79 million and Net income of $40 million.
  • Adjusted EBITDA of $174 million with a margin of 24 percent.
  • GAAP diluted EPS of $0.22 and Adjusted diluted EPS of $0.29.

Headline financials

Total Revenue

$722M

Previous: $390M+85.1%
EPS (adj)

$0.29

Previous: -$0.18+261.1%
Adjusted EBITDA Margin

24.0%

No prior period
Free Cash Flow

$32M

Previous: -$34M+194.1%
Net Income

$32M

Previous: -$34M+194.1%
Operating Income

$79M

Previous: $16M+393.8%
Gross Profit

$175M

Previous: $83M+110.8%
Cash & Equivalents

$420M

Previous: $1.07B-60.7%
Total Assets

$5.13B

Previous: $4.73B+8.5%
Stock-Based Comp

$9M

Previous: $8M+12.5%

Revenue & EPS history

Tronox · Revenue · Quarterly

$722M

Q1 2020+85.1%vs Q1 2019
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

Tronox · $645M total across 2 segments · Q1 2020

  • TiO2
    $580M+1.8%
  • Zircon
    $65M-20.7%

Forward guidance

Tronox anticipates a decline in TiO2 volumes and stable Zircon volumes for Q2 2020.

Tailwinds

  • Successfully completed the offering of $500 million 6.5% 2025 senior secured notes.
  • Proceeds to be used for general corporate purposes.
  • Portion of proceeds used to pay down $200 million drawn on ABL and revolving credit facilities.
  • Proactively managing cash flow through cost reductions.
  • Harvesting of working capital and reducing capital expenditures.

Headwinds

  • Second quarter TiO2 volumes expected to decline in the high teens to low twenties percent range versus first quarter 2020.
  • Evolving status of social restrictions.
  • Uncertain plans for the re-opening of economies around the world.
  • Most recent conversations with and public statements by our customers.
  • Market conditions which are evolving each day.

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 Q1 2020

Historical avgQ1 2020

-0.8%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+2.3%

Avg return

30 days after

49%

30 / 61 earnings

Positive

+33.8%

Q4 2016

Best reaction

-20.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%+4.3%-13.2%
Q4 2025-10.5%+3.6%+0.9%
Q3 2025-0.6%+9.1%+20.4%
Q1 2025+1.5%-1.8%+5.0%
Q4 2024-11.0%-18.4%-28.0%
Q3 2024-7.5%-9.9%-8.4%
Q2 2024-17.6%-16.8%-13.8%
Q1 2024+12.9%+10.2%+16.6%
Q4 2023+9.8%+12.7%+25.0%
Q3 2023+2.7%+0.5%+20.1%
Q2 2023-4.3%-10.0%-15.6%
Q1 2023-0.4%+7.1%-9.7%
Q4 2022-3.2%-2.9%-19.9%
Q3 2022-6.8%-11.0%+5.4%
Q2 2022-0.6%-4.3%-5.8%
Q1 2022-1.6%-4.6%+1.3%
Q4 2021-6.7%-9.9%-13.1%
Q3 2021-9.1%-5.6%-8.6%
Q2 2021+1.9%-3.0%+19.2%
Q1 2021+0.3%+1.0%+7.0%
Q4 2020-2.9%+7.0%-4.1%
Q3 2020+5.8%+17.1%+37.8%
Q2 2020-2.4%-1.0%+18.5%
Q1 2020-8.4%+3.5%+24.2%
Q4 2019-12.0%-16.7%-30.2%
Q3 2019+2.9%+6.4%+5.3%
Q2 2019-2.3%-6.4%-12.1%
Q1 2019-6.1%-9.3%-8.4%
Q4 2018+2.2%+1.4%+13.7%
Q3 2018+5.2%+3.4%-17.5%
Q2 2018-8.9%-7.7%-12.2%
Q1 2018+1.4%+0.1%+9.1%
Q4 2017+8.3%+9.4%+0.9%
Q3 2017+1.9%+3.5%-24.6%
Q2 2017-1.8%-1.5%+9.9%
Q1 2017-6.2%-4.3%-8.0%
Q4 2016+33.8%+20.7%+15.5%
Q3 2016+3.1%+17.2%+36.0%
Q2 2016+6.9%+19.1%+50.4%
Q1 2016-5.4%
Q4 2015+8.3%
Q3 2015-20.8%
Q2 2015+2.2%
Q1 2015-6.0%
Q4 2014-3.7%
Q3 2014+4.1%
Q2 2014+6.5%
Q1 2014-5.9%
Q4 2013+14.3%
Q3 2013+0.6%
Q2 2013+2.9%
Q1 2012+0.5%
Q1 2013+1.5%
Q4 2012+2.5%
Q3 2012-18.6%
Q2 2012-2.4%
Q4 2011+2.5%
Q3 2011-8.2%
Q2 2011+5.2%
Q1 2011+0.7%
Q4 2010+0.0%
Q3 2010
Q2 2010

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