WILMINGTON, Del., Aug. 2, 2017 /PRNewswire/ --
Second Quarter 2017 Highlights
- Net Sales of $1.6 billion, up
15%
- Net Income of $161 million, up
$179 million with EPS of $0.84, up $0.94 per
diluted share
- Adjusted EBITDA of $361 million,
up $174 million, driven by strong
year-over-year volume and price improvement in Titanium
Technologies and Fluoroproducts
- Adjusted Net Income of $166
million, up $117 million with
Adjusted EPS of $0.87, up
$0.60 per diluted share
- Net leverage1 down to 2.2 times, well below target
of 3 times
The Chemours Company (Chemours) (NYSE: CC), a global chemistry
company with leading market positions in titanium technologies,
fluoroproducts and chemical solutions, today announced financial
results for the second quarter 2017.
Chemours President and CEO Mark
Vergnano said, "Our strong financial performance is a clear
reflection of the quality of our business segments, the engagement
of our employees, and the loyalty of our key customers. With two
years behind us as a stand-alone company, we are seeing the
positive effects of our transformation plan paired with improving
end markets. Customer preference for our Ti-Pure™ titanium dioxide
delivered another strong quarter for our Titanium Technologies
business. Opteon™ refrigerants adoption ramp up remains in full
force, leading the double-digit volume growth reported within
Fluoroproducts. Overall, these resulted in higher volumes and
significant margin improvement year-over-year. We are pleased with
the strength of the first half and expect to continue this positive
trajectory through 2017."
Second quarter net sales were $1.6
billion, an increase of 15 percent from $1.4 billion in the prior-year quarter. Volume
growth in all three segments drove a 15 percent increase in revenue
and higher prices primarily for Ti-Pure™ titanium dioxide added
another 7 percent. These results were reduced by 6 percent due to
the portfolio effects of divestitures and site closure within
Chemical Solutions, and a 1 percent currency headwind during the
quarter. Second quarter net income of $161
million, or $0.84 per diluted
share, increased $179 million versus
a net loss of $18 million, or
($0.10) per diluted share in last
year's second quarter. Adjusted EBITDA for the second quarter 2017
was $361 million, a 93 percent
increase compared to $187 million in
the second quarter of 2016. This improvement was primarily driven
by increased volume and pricing, which were partially reduced by
transformation-related costs, higher performance compensation
expenses as compared to the prior year, and the impact of the
portfolio changes in Chemical Solutions.
Titanium Technologies
In the second quarter, Titanium
Technologies segment sales were $729
million, a 22 percent increase versus the prior-year
quarter, driven by higher global average selling prices and demand
for Ti-Pure™ titanium dioxide. Segment Adjusted EBITDA was
$193 million, a 74 percent
year-over-year increase. The improved Ti-Pure™ titanium dioxide
pricing and volumes were somewhat offset by higher costs primarily
related to transformation activities and performance
compensation.
1 Defined as gross debt minus cash divided by
trailing twelve-month Adjusted EBITDA
Fluoroproducts
In the second quarter, Fluoroproducts
segment sales were $710 million, an
increase of 24 percent versus the prior-year quarter. Expanded
adoption of Opteon™ refrigerants and strong demand for
fluoropolymers drove higher volume compared to last year's second
quarter. Price modestly improved in comparison to last year's
second quarter primarily as a result of higher prices of base
refrigerants that were partially offset by lower fluoropolymers
pricing and customer mix. Segment Adjusted EBITDA was $197 million, an 88 percent increase versus the
prior-year quarter, reflecting increased volume partially offset by
higher costs related to transformation activities and performance
compensation.
Chemical Solutions
Chemical Solutions second quarter
2017 sales were $149 million, a 30
percent decline versus the prior-year quarter, reflecting the
impact of portfolio changes. Segment Adjusted EBITDA was
$7 million compared to $11 million in the prior-year quarter with the
decline primarily related to portfolio changes. Partially
offsetting the declines, solid demand for both performance
chemicals & intermediates and mining solutions products led to
volume increases versus the previous year. In addition, modest
price improvements partially offset raw material increases in the
quarter.
Corporate and Other
Corporate and Other represented a
negative $36 million of Adjusted
EBITDA. Expenses in the second quarter of 2017 improved by
$4 million versus the prior-year
quarter driven by timing of legal costs, partially offset by higher
transformation costs.
During the second quarter 2017, the company realized a cash tax
rate of approximately 11 percent. The company expects its cash tax
rate to be in the mid-teens for the full-year 2017, reflecting the
company's anticipated geographic mix of earnings.
Liquidity
As of June 30,
2017, gross consolidated debt was approximately $4.1 billion. Debt, net of $1.5 billion cash, was approximately $2.5 billion, resulting in a net debt-to-EBITDA
ratio of approximately 2.2 times on a trailing twelve-month
basis.
During the quarter, Chemours completed an offering of
approximately $500 million aggregate
principal amount of 5.375% Senior Notes due 2027, with the
intention of using the net proceeds of the offering for general
corporate purposes, including funding Chemours' portion of the
global settlement of the PFOA multi-district litigation settlement
between DuPont and the plaintiffs. The company expects to complete
the payment of its portion in August
2017. Following this payment, the company anticipates its
net debt-to-EBITDA ratio will remain well below 3 times on a
trailing twelve-month basis.
Also during the second quarter of 2017, as previously disclosed,
Chemours repriced its existing Term Loan B to lower its interest
rate spread. As part of the transaction, Chemours modified its
credit agreement to provide a new class of term loans denominated
in Euros and U.S. Dollars, in an aggregate principal amount of €400
million and $940 million,
respectively.
Cash provided by operating activities for the second quarter of
2017 was $183 million, versus
$90 million in second quarter of
2016. Net working capital for the quarter was a use of $83 million of cash, consistent with normal
seasonal patterns. Free Cash Flow for the second quarter was
$114 million, a $103 million improvement versus the previous-year
quarter of $11 million. Improvement
in Free Cash Flow was due to higher operating earnings.
In the first half of 2017, cash provided by operating activities
was $224 million, versus $126 million in the first half of 2016, which
included a $131 million benefit of
the prepayment received from DuPont. Excluding the DuPont
prepayment, 2017 year-to-date Free Cash Flow of $86 million would represent a $259 million improvement versus the
previous-year's first half.
Outlook
Vergnano commented, "We plan to build on the
momentum of the first half and now expect to deliver 2017 Adjusted
EBITDA within a range of $1.3 to $1.4
billion given the benefits of our transformation plan
initiatives, lower levels of transformation-related costs in the
second half, and the strength of our improving key end markets. We
expect Free Cash Flow to be approximately breakeven, including the
anticipated payment for the PFOA MDL settlement."
Conference Call
As previously announced, Chemours
will hold a conference call and webcast on Thursday, August 3, 2017 at 8:30 AM EDT. The webcast and additional
presentation materials can be accessed by visiting the Events
& Presentations page of Chemours' investor website,
investors.chemours.com. A webcast replay of the conference call
will be available on the Chemours' investor website.
About The Chemours Company
The Chemours Company
(NYSE: CC) helps create a colorful, capable and cleaner world
through the power of chemistry. Chemours is a global leader
in titanium technologies, fluoroproducts and chemical solutions,
providing its customers with solutions in a wide range of
industries with market-defining products, application expertise and
chemistry-based innovations. Chemours ingredients are found
in plastics and coatings, refrigeration and air conditioning,
mining and general industrial manufacturing. Our flagship
products include prominent brands such as Teflon™, Ti-Pure™,
Krytox™, Viton™, Opteon™, Freon™ and Nafion™. Chemours has
approximately 7,000 employees and 26 manufacturing sites serving
approximately 4,000 customers in North
America, Latin America,
Asia-Pacific and Europe.
Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE
under the symbol CC. For more information please visit
chemours.com.
Non-GAAP Financial Measures
We prepare our financial
statements in accordance with Generally Accepted Accounting
Principles ("GAAP"). Within this press release, we refer to
Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted
EBITDA margin and Free Cash Flow, which are non-GAAP financial
measures. Free Cash Flow is defined as Cash from Operations minus
cash used for PP&E purchases. The company includes these
non-GAAP financial measures because management believes they are
useful to investors in that they provide for greater transparency
with respect to supplemental information used by management in its
financial and operational decision making.
Management uses Adjusted Net Income (Loss), Adjusted EPS,
Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow to
evaluate the company's performance excluding the impact of certain
noncash charges and other special items which we expect to be
infrequent in occurrence in order to have comparable financial
results to analyze changes in our underlying business from quarter
to quarter.
Accordingly, the company believes the presentation of these
non-GAAP financial measures, when used in conjunction with GAAP
financial measures, is a useful financial analysis tool that can
assist investors in assessing the company's operating performance
and underlying prospects. This analysis should not be considered in
isolation or as a substitute for analysis of our results as
reported under GAAP. This analysis, as well as the other
information in this press release, should be read in conjunction
with the company's financial statements and footnotes contained in
the documents that the company files with the U.S. Securities and
Exchange Commission. The non-GAAP financial measures used by the
company in this press release may be different from the methods
used by other companies. For more information on the non-GAAP
financial measures, please refer to the attached schedules or the
table, "Reconciliation of Non-GAAP Financial Measures to GAAP
Financial Measures" and materials posted to the website at
investors.chemours.com.
Forward-Looking Statements
This press release
contains forward-looking statements, within the meaning of the safe
harbor provisions of the U.S. Private Securities Litigation Reform
Act of 1995, that involve risks and uncertainties. Forward-looking
statements provide current expectations of future events based on
certain assumptions and include any statement that does not
directly relate to any historical or current fact. The words
"believe," "expect," "anticipate," "plan," "estimate," "target,"
"project" and similar expressions, among others, generally identify
"forward-looking statements," which speak only as of the date the
statements were made. These forward-looking statements address,
among other things, our agreement with DuPont relating to the MDL
Settlement, the outcome or resolution of any pending or future
environmental liabilities, litigation and other legal proceedings
or contingencies, anticipated future operating and financial
performance, business plans and prospects, transformation plans,
cost savings targets, plans to increase profitability and our
outlook for Adjusted EBITDA and free cash flow that are subject to
substantial risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by such
statements. Forward-looking statements are based on certain
assumptions and expectations of future events which may not be
accurate or realized. Forward-looking statements also involve risks
and uncertainties, many of which are beyond Chemours' control.
Additionally, there may be other risks and uncertainties that
Chemours is unable to identify at this time or that Chemours does
not currently expect to have a material impact on its business.
Factors that could cause or contribute to these differences
include: whether the MDL Settlement becomes effective; the outcome
of any pending or future litigation related to PFOA; the
performance by DuPont of its obligations under the MDL Settlement;
the terms of any final agreement between Chemours and DuPont
relating to the MDL Settlement; and other risks, uncertainties and
other factors discussed in our filings with the Securities and
Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2016.
Chemours assumes no obligation to revise or update any
forward-looking statement for any reason, except as required by
law.
CONTACT
MEDIA
Alvenia
Scarborough
Director, Corporate Communications
and Brand Marketing
+1.302.773.4507
media@chemours.com
INVESTORS
Alisha
Bellezza
Treasurer and Director of Investor
Relations
+1.302.773.2263
investor@chemours.com
The Chemours
Company
|
Interim
Consolidated Statements of Operations (Unaudited)
|
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
Six Months Ended
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2016
|
|
Net sales
|
|
$
|
1,588
|
|
|
$
|
1,383
|
|
|
$
|
3,024
|
|
|
$
|
2,680
|
|
Cost of goods
sold
|
|
|
1,147
|
|
|
|
1,116
|
|
|
|
2,225
|
|
|
|
2,212
|
|
Gross
profit
|
|
|
441
|
|
|
|
267
|
|
|
|
799
|
|
|
|
468
|
|
Selling, general and
administrative expense
|
|
|
157
|
|
|
|
174
|
|
|
|
301
|
|
|
|
307
|
|
Research and
development expense
|
|
|
21
|
|
|
|
17
|
|
|
|
40
|
|
|
|
40
|
|
Restructuring and
asset-related charges, net
|
|
|
6
|
|
|
|
67
|
|
|
|
18
|
|
|
|
85
|
|
Total
expenses
|
|
|
184
|
|
|
|
258
|
|
|
|
359
|
|
|
|
432
|
|
Equity in earnings of
affiliates
|
|
|
10
|
|
|
|
4
|
|
|
|
17
|
|
|
|
9
|
|
Interest expense,
net
|
|
|
(55)
|
|
|
|
(50)
|
|
|
|
(106)
|
|
|
|
(106)
|
|
Other income
(expense), net
|
|
|
13
|
|
|
|
(4)
|
|
|
|
48
|
|
|
|
89
|
|
Income (loss)
before income taxes
|
|
|
225
|
|
|
|
(41)
|
|
|
|
399
|
|
|
|
28
|
|
Provision for
(benefit from) income taxes
|
|
|
64
|
|
|
|
(23)
|
|
|
|
87
|
|
|
|
(5)
|
|
Net income
(loss)
|
|
|
161
|
|
|
|
(18)
|
|
|
|
312
|
|
|
|
33
|
|
Less: Net income
attributable to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
1
|
|
|
|
—
|
|
Net income (loss)
attributable to Chemours
|
|
$
|
161
|
|
|
$
|
(18)
|
|
|
$
|
311
|
|
|
$
|
33
|
|
Per share
data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings
(loss) per share of common stock
|
|
$
|
0.87
|
|
|
$
|
(0.10)
|
|
|
$
|
1.69
|
|
|
$
|
0.18
|
|
Diluted earnings
(loss) per share of common stock
|
|
$
|
0.84
|
|
|
$
|
(0.10)
|
|
|
$
|
1.64
|
|
|
$
|
0.18
|
|
Dividends per share
of common stock
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
The Chemours
Company
|
Interim
Consolidated Balance Sheets
|
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
June 30,
|
|
|
December 31,
|
|
|
|
2017
|
|
|
2016
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,529
|
|
|
$
|
902
|
|
Accounts and notes
receivable - trade, net
|
|
|
994
|
|
|
|
807
|
|
Inventories
|
|
|
848
|
|
|
|
767
|
|
Prepaid expenses and
other
|
|
|
69
|
|
|
|
77
|
|
Total current
assets
|
|
|
3,440
|
|
|
|
2,553
|
|
Property, plant and
equipment
|
|
|
8,288
|
|
|
|
7,997
|
|
Less: Accumulated
depreciation
|
|
|
(5,386)
|
|
|
|
(5,213)
|
|
Property, plant and
equipment, net
|
|
|
2,902
|
|
|
|
2,784
|
|
Goodwill and other
intangible assets, net
|
|
|
168
|
|
|
|
170
|
|
Investments in
affiliates
|
|
|
158
|
|
|
|
136
|
|
Other
assets
|
|
|
384
|
|
|
|
417
|
|
Total
assets
|
|
$
|
7,052
|
|
|
$
|
6,060
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
985
|
|
|
$
|
884
|
|
Current maturities of
long-term debt
|
|
|
14
|
|
|
|
15
|
|
Other accrued
liabilities
|
|
|
751
|
|
|
|
872
|
|
Total current
liabilities
|
|
|
1,750
|
|
|
|
1,771
|
|
Long-term debt,
net
|
|
|
4,056
|
|
|
|
3,529
|
|
Deferred income
taxes
|
|
|
159
|
|
|
|
132
|
|
Other
liabilities
|
|
|
515
|
|
|
|
524
|
|
Total
liabilities
|
|
|
6,480
|
|
|
|
5,956
|
|
Commitments and
contingent liabilities
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock (par
value $0.01 per share; 810,000,000 shares authorized)
|
|
|
2
|
|
|
|
2
|
|
Additional paid-in
capital
|
|
|
820
|
|
|
|
789
|
|
Retained earnings
(accumulated deficit)
|
|
|
186
|
|
|
|
(114)
|
|
Accumulated other
comprehensive loss
|
|
|
(441)
|
|
|
|
(577)
|
|
Total Chemours
stockholders' equity
|
|
|
567
|
|
|
|
100
|
|
Non-controlling
interests
|
|
|
5
|
|
|
|
4
|
|
Total
equity
|
|
|
572
|
|
|
|
104
|
|
Total liabilities
and equity
|
|
$
|
7,052
|
|
|
$
|
6,060
|
|
The Chemours
Company
|
Interim
Consolidated Statements of Cash Flows (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
Six Months Ended
June 30,
|
|
|
|
2017
|
|
|
2016
|
|
Operating
activities
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
312
|
|
|
$
|
33
|
|
Adjustments to
reconcile net income to cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
142
|
|
|
|
139
|
|
Amortization of
deferred financing costs and issuance discount
|
|
|
7
|
|
|
|
11
|
|
Gain on sale of assets
and businesses
|
|
|
(14)
|
|
|
|
(88)
|
|
Equity in earnings of
affiliates
|
|
|
(17)
|
|
|
|
(9)
|
|
Deferred tax provision
(benefit)
|
|
|
38
|
|
|
|
(36)
|
|
Asset-related
charges
|
|
|
2
|
|
|
|
63
|
|
Other operating
charges and credits, net
|
|
|
13
|
|
|
|
14
|
|
(Increase) decrease in
operating assets:
|
|
|
|
|
|
|
|
|
Accounts and notes
receivable - trade, net
|
|
|
(170)
|
|
|
|
(92)
|
|
Inventories and other
operating assets
|
|
|
(43)
|
|
|
|
85
|
|
(Decrease) increase in
operating liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable and
other operating liabilities
|
|
|
(46)
|
|
|
|
6
|
|
Cash provided by
operating activities
|
|
|
224
|
|
|
|
126
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
Purchases of property,
plant and equipment
|
|
|
(138)
|
|
|
|
(168)
|
|
Proceeds from sales of
assets and businesses, net
|
|
|
38
|
|
|
|
150
|
|
Foreign exchange
contract settlements, net
|
|
|
2
|
|
|
|
—
|
|
Cash used for
investing activities
|
|
|
(98)
|
|
|
|
(18)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
Proceeds from issuance
of debt, net
|
|
|
494
|
|
|
|
—
|
|
Debt
repayments
|
|
|
(20)
|
|
|
|
(95)
|
|
Dividends
paid
|
|
|
(11)
|
|
|
|
(11)
|
|
Deferred financing
fees
|
|
|
(6)
|
|
|
|
(2)
|
|
Proceeds from
exercised stock options
|
|
|
26
|
|
|
|
—
|
|
Cash provided by (used
for) financing activities
|
|
|
483
|
|
|
|
(108)
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
|
18
|
|
|
|
17
|
|
Increase in cash
and cash equivalents
|
|
|
627
|
|
|
|
17
|
|
Cash and cash
equivalents at beginning of the period
|
|
|
902
|
|
|
|
366
|
|
Cash and cash
equivalents at end of the period
|
|
$
|
1,529
|
|
|
$
|
383
|
|
Non-cash investing
activities
|
|
|
|
|
|
|
|
|
Change in property,
plant and equipment included in accounts payable
|
|
$
|
(5)
|
|
|
$
|
10
|
|
The Chemours
Company
|
Segment Financial
and Operating Data (Unaudited)
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
Segment Net
Sales
|
Three months
ended
|
|
|
|
Three months
ended
|
Sequential
|
|
|
June
30,
|
Increase
/
|
|
|
March
31,
|
Increase
/
|
|
|
2017
|
2016
|
(Decrease)
|
|
|
2017
|
(Decrease)
|
|
Titanium
Technologies
|
$
|
|
729
|
|
|
$
|
|
596
|
|
|
$
|
|
133
|
|
|
$
|
646
|
|
|
$
|
|
83
|
|
Fluoroproducts
|
|
|
710
|
|
|
|
|
573
|
|
|
|
|
137
|
|
|
|
652
|
|
|
|
|
58
|
|
Chemical
Solutions
|
|
|
149
|
|
|
|
|
214
|
|
|
|
|
(65)
|
|
|
|
139
|
|
|
|
|
10
|
|
Net
sales
|
$
|
|
1,588
|
|
|
$
|
|
1,383
|
|
|
$
|
|
205
|
|
|
$
|
|
1,437
|
|
|
$
|
|
151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Adjusted
EBITDA
|
Three months
ended
|
|
|
|
Three months
ended
|
Sequential
|
|
|
June
30,
|
Increase
/
|
|
|
March
31,
|
Increase
/
|
|
|
2017
|
2016
|
(Decrease)
|
|
|
2017
|
(Decrease)
|
|
Titanium
Technologies
|
$
|
|
193
|
|
|
$
|
|
111
|
|
|
$
|
|
82
|
|
|
$
|
|
159
|
|
|
$
|
|
34
|
|
Fluoroproducts
|
|
|
197
|
|
|
|
|
105
|
|
|
|
|
92
|
|
|
|
|
155
|
|
|
|
|
42
|
|
Chemical
Solutions
|
|
|
7
|
|
|
|
|
11
|
|
|
|
|
(4)
|
|
|
|
|
12
|
|
|
|
|
(5)
|
|
Corporate and
Other
|
|
|
(36)
|
|
|
|
|
(40)
|
|
|
|
|
4
|
|
|
|
|
(41)
|
|
|
|
|
5
|
|
Total Adjusted
EBITDA
|
$
|
|
361
|
|
|
$
|
|
187
|
|
|
$
|
|
174
|
|
|
$
|
|
285
|
|
|
$
|
|
76
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Margin
|
23%
|
|
|
14%
|
|
|
|
|
|
20%
|
|
|
|
|
Quarterly Change
in Net Sales from June 30, 2016
|
|
|
|
|
|
|
|
|
Percentage
|
|
Percentage change
due to:
|
|
|
June 30,
2017
Net
Sales
|
|
|
Change
vs
June 30,
2016
|
|
Local
Price
|
|
Volume
|
|
Currency
Effect
|
|
Portfolio /
Other
|
|
Total
Company
|
$
|
|
1,588
|
|
|
|
15
|
%
|
|
7
|
%
|
|
15
|
%
|
|
(1)%
|
|
|
(6)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium
Technologies
|
$
|
|
729
|
|
|
|
22
|
%
|
|
15
|
%
|
|
8
|
%
|
|
(1)%
|
|
|
—
|
%
|
Fluoroproducts
|
$
|
710
|
|
|
|
24
|
%
|
|
1
|
%
|
|
23
|
%
|
|
—
|
%
|
|
—
|
%
|
Chemical
Solutions
|
$
|
149
|
|
|
|
(30)%
|
|
|
1
|
%
|
|
9
|
%
|
|
—
|
%
|
|
(40)%
|
|
Quarterly Change
in Net Sales from March 31, 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
Percentage change
due to:
|
|
|
June 30,
2017
Net
Sales
|
|
|
Change
vs
March 31,
2017
|
|
Local
Price
|
|
Volume
|
|
Currency
Effect
|
|
Portfolio /
Other
|
|
Total
Company
|
$
|
|
1,588
|
|
|
|
11
|
%
|
|
4
|
%
|
|
6
|
%
|
|
1
|
%
|
|
—
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium
Technologies
|
$
|
729
|
|
|
|
13
|
%
|
|
5
|
%
|
|
7
|
%
|
|
1
|
%
|
|
—
|
%
|
Fluoroproducts
|
$
|
710
|
|
|
|
9
|
%
|
|
4
|
%
|
|
4
|
%
|
|
1
|
%
|
|
—
|
%
|
Chemical
Solutions
|
$
|
149
|
|
|
|
7
|
%
|
|
—
|
%
|
|
7
|
%
|
|
—
|
%
|
|
—
|
%
|
The Chemours
Company
|
Reconciliations of
Non-GAAP Information (Unaudited)
|
GAAP Net Income
(Loss) to Adjusted Net Income and Adjusted EBITDA Tabular
Reconciliations
|
(Dollars in
millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Net income (loss)
attributable to Chemours
|
|
$
|
|
161
|
|
|
$
|
|
(18)
|
|
|
$
|
|
150
|
|
|
$
|
|
311
|
|
|
$
|
|
33
|
|
Non-operating pension
and other post-retirement employee benefit income
|
|
|
|
(10)
|
|
|
|
|
(7)
|
|
|
|
|
(8)
|
|
|
|
|
(18)
|
|
|
|
|
(14)
|
|
Exchange (gains)
losses
|
|
|
|
(2)
|
|
|
|
|
14
|
|
|
|
|
(5)
|
|
|
|
|
(7)
|
|
|
|
|
20
|
|
Restructuring
charges
|
|
|
|
6
|
|
|
|
|
9
|
|
|
|
|
12
|
|
|
|
|
18
|
|
|
|
|
27
|
|
Asset-related
charges
|
|
|
|
2
|
|
|
|
|
63
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
63
|
|
Loss (gain) on sale
of assets or businesses
|
|
|
|
2
|
|
|
|
|
1
|
|
|
|
|
(16)
|
|
|
|
|
(14)
|
|
|
|
|
(88)
|
|
Transaction
costs1
|
|
|
|
2
|
|
|
|
|
12
|
|
|
|
—
|
|
|
|
|
2
|
|
|
|
|
15
|
|
Legal and other
charges2
|
|
|
|
10
|
|
|
|
|
13
|
|
|
|
|
7
|
|
|
|
|
17
|
|
|
|
|
19
|
|
(Benefit from)
provision for income taxes relating to reconciling
items3
|
|
|
|
(5)
|
|
|
|
|
(38)
|
|
|
|
|
2
|
|
|
|
|
(3)
|
|
|
|
|
(15)
|
|
Adjusted Net
Income
|
|
|
|
166
|
|
|
|
|
49
|
|
|
|
|
142
|
|
|
|
|
308
|
|
|
|
|
60
|
|
Net income
attributable to non-controlling interests
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
—
|
|
Interest expense,
net
|
|
|
|
55
|
|
|
|
|
50
|
|
|
|
|
51
|
|
|
|
|
106
|
|
|
|
|
106
|
|
Depreciation and
amortization
|
|
|
|
71
|
|
|
|
|
73
|
|
|
|
|
71
|
|
|
|
|
142
|
|
|
|
|
139
|
|
All remaining
provision for income taxes3
|
|
|
|
69
|
|
|
|
|
15
|
|
|
|
|
20
|
|
|
|
|
90
|
|
|
|
|
10
|
|
Adjusted
EBITDA
|
|
$
|
|
361
|
|
|
$
|
|
187
|
|
|
$
|
|
285
|
|
|
$
|
|
647
|
|
|
$
|
|
315
|
|
1 Includes accounting, legal
and bankers transaction fees incurred related to the Company's
strategic initiatives.
2 Includes litigation settlements,
water treatment accruals related to PFOA, employee separation costs
and lease termination charges.
3 Total of provision for (benefit
from) income taxes reconciles to the amount reported in the Interim
Consolidated Statements of Operations for the three and six months
ended June 30, 2017 and 2016.
Adjusted Net Income diluted earnings per share is calculated
using Adjusted Net Income divided by diluted weighted-average
shares of common shares outstanding during each period, which
includes unvested restricted shares. The table below shows a
reconciliation of the numerator and denominator for basic and
diluted earnings per share and adjusted earnings per share
calculations for the periods indicated:
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Numerator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Chemours
|
|
$
|
|
161
|
|
|
$
|
|
(18)
|
|
|
$
|
|
150
|
|
|
$
|
|
311
|
|
|
$
|
|
33
|
|
Adjusted Net
Income
|
|
$
|
|
166
|
|
|
$
|
|
49
|
|
|
$
|
|
142
|
|
|
$
|
|
308
|
|
|
$
|
|
60
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of common shares outstanding - Basic
|
|
|
|
185,069,436
|
|
|
|
|
181,477,672
|
|
|
|
|
183,408,309
|
|
|
|
|
184,243,461
|
|
|
|
|
181,379,419
|
|
Dilutive effect of the
company's employee compensation plans1
|
|
|
|
6,057,203
|
|
|
|
—
|
|
|
|
|
5,741,621
|
|
|
|
|
5,899,412
|
|
|
|
|
668,410
|
|
Weighted average
number of common shares outstanding - Diluted
|
|
|
|
191,126,639
|
|
|
|
|
181,477,672
|
|
|
|
|
189,149,930
|
|
|
|
|
190,142,873
|
|
|
|
|
182,047,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - basic
|
|
$
|
|
0.87
|
|
|
$
|
|
(0.10)
|
|
|
$
|
|
0.82
|
|
|
$
|
|
1.69
|
|
|
$
|
|
0.18
|
|
Earnings (loss) per
share - diluted1
|
|
$
|
|
0.84
|
|
|
$
|
|
(0.10)
|
|
|
$
|
|
0.79
|
|
|
$
|
|
1.64
|
|
|
$
|
|
0.18
|
|
Adjusted earnings per
share - basic
|
|
$
|
|
0.90
|
|
|
$
|
|
0.27
|
|
|
$
|
|
0.77
|
|
|
$
|
|
1.67
|
|
|
$
|
|
0.33
|
|
Adjusted earnings per
share - diluted1
|
|
$
|
|
0.87
|
|
|
$
|
|
0.27
|
|
|
$
|
|
0.75
|
|
|
$
|
|
1.62
|
|
|
$
|
|
0.33
|
|
1 Diluted earnings (loss) per
share is calculated using net income (loss) available to common
shareholders divided by diluted weighted-average shares of common
shares outstanding during each period, which includes unvested
restricted shares. Diluted earnings (loss) per share considers
the impact of potentially dilutive securities except in periods in
which there is a loss because the inclusion of the potential common
shares would have an antidilutive effect.
The Chemours
Company
|
Reconciliations of
Non-GAAP Information (Unaudited)
|
(Dollars in
millions)
|
2017 Estimated
GAAP Net Income to Estimated Adjusted EBITDA Tabular
Reconciliation
|
|
|
|
Estimated Net Income
1
|
|
$605 - 680
|
Provision for income
taxes 1 2
|
|
195 - 220
|
Interest expense,
net
|
|
~ 220
|
Depreciation and
amortization
|
|
~ 280
|
Other reconciling
items 1 3
|
|
~ (0)
|
Estimated Adjusted
EBITDA 1
|
|
$1,300 -
1,400
|
1 Our estimates reflect our
current visibility and expectations of market factors, such as but
not limited to, currency movements, TiO2 prices and
end-market demand. Actual results could differ materially
from the current estimates due to market factors and unknown or
uncertainty of other factors, such as, an estimate of non-operating
pension benefit costs with respect to our foreign pension plans
including settlements or curtailments, cost savings actions that
may be taken in the future, the impact of currency movements on our
results including exchange gains and losses and the related tax
effects.
2 Provision for income tax is
based on our current estimate of geographic mix of earnings and
does not include potential tax effect of future discrete items.
3 Includes non-operating
pension benefit income, exchange gains and losses, gain on sale of
assets, restructuring and other charges recognized in the first
half of 2017.
GAAP Cash Flow to
Free Cash Flow Tabular Reconciliations
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Six months
ended
|
|
|
|
June
30,
|
|
|
March
31,
|
|
|
June
30,
|
|
|
|
2017
|
|
|
2016
|
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Cash flow provided by
operating activities
|
|
$
|
|
183
|
|
|
$
|
|
90
|
|
|
$
|
|
41
|
|
|
$
|
|
224
|
|
|
$
|
|
126
|
|
Cash flow used for
purchases of property, plant and equipment
|
|
|
|
(69)
|
|
|
|
|
(79)
|
|
|
|
|
(69)
|
|
|
|
|
(138)
|
|
|
|
|
(168)
|
|
Free cash
flows 1
|
|
$
|
|
114
|
|
|
$
|
|
11
|
|
|
$
|
|
(28)
|
|
|
$
|
|
86
|
|
|
$
|
|
(42)
|
|
1 Cash flows from operating
activities for the six months ended June 30,
2017 and 2016 include the DuPont prepayment of $190 million received in the first quarter of
2016, of which $0 million and
$131 million remain outstanding as of
June 30, 2017 and 2016,
respectively. Excluding the DuPont prepayment, free cash
flows for the six months ended June 30,
2016 would have been negative $173
million.
View original
content:http://www.prnewswire.com/news-releases/the-chemours-company-reports-strong-second-quarter-results-and-increases-full-year-2017-outlook-300498687.html
SOURCE The Chemours Company