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Mar 31, 2020
Tronox Q1 2020 Earnings Report
Tronox's first quarter results exceeded preliminary expectations, with strong performance driven by geographic diversity and acquisition synergies.
Key Takeaways
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.
Revenue by Segment
Forward Guidance
Tronox anticipates a decline in TiO2 volumes and stable Zircon volumes for Q2 2020.
Positive Outlook
- 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.
Challenges Ahead
- 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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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