The Chemours Company Reports Fourth Quarter and Full Year 2023 Results
Key Fourth Quarter 2023 Results
-
Net Sales of$1.4 billion , up 2% year-over-year -
Net Loss attributable to Chemours of
$18 million , or a loss of$0.12 per diluted share -
Adjusted Net Income1, which primarily excludes
$62 million ($89 million pre-tax) in litigation settlement charges, was$46 million , compared to$480 thousand in the corresponding prior-year quarter -
Adjusted Net Income per diluted share of
$0.31 , compared to$0.00 per diluted share in the corresponding prior-year quarter -
Adjusted EBITDA1,2, which primarily excludes litigation settlement charges of
$89 million , was$176 million , compared to$120 million in the corresponding prior-year quarter -
Operating Cash Flow of
$482 million and capital expenditures of$135 million
Key Full Year 2023 Results
-
Net Sales of$6.0 billion , down 11% year-over-year -
Net Loss attributable to Chemours of
$238 million , or a loss of$1.60 per share -
Adjusted Net Income1, which primarily excludes
$639 million ($764 million pre-tax) in litigation settlement charges, was$425 million , compared to$738 million in the prior year -
Adjusted Net Income per diluted share of
$2.82 , compared to$4.66 per diluted share in the prior year -
Adjusted EBITDA1,2, which primarily excludes litigation settlement charges of
$764 million , was$1.0 billion , compared to$1.4 billion in the prior year -
Operating Cash Flow of
$556 million and capital expenditures of$370 million
“Chemours navigated a challenging year in 2023 that included prolonged destocking in certain key end markets, and these headwinds impacted our overall financial performance,” said Chemours CEO
Fourth quarter 2023 Net Sales of
___________________________________________ | |
1 |
Non-GAAP measures, including Adjusted Net Income, Adjusted EPS, and Adjusted EBITDA, referred to throughout, principally exclude the impact of recent litigation settlements for legacy environmental matters and associated fees, in addition to other unallocated items – please refer to the attached "Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)”. |
2 |
Adjusted EBITDA excludes net income attributable to noncontrolling interests, net interest expense, depreciation and amortization, and all remaining provision for income taxes from Adjusted Net Income. Please refer to the attached “Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)”. |
Fourth quarter 2023 Net Loss attributable to Chemours was
Fourth quarter 2023 Adjusted EBITDA improved 47% year-over-year to
Full year 2023 Net Sales of
Full year 2023 Net Loss attributable to Chemours was
Full year 2023 Adjusted EBITDA was
For the three- and nine-month periods ended
Additionally, on
Segment Results
Titanium Technologies (TT)
Delivering high-quality Ti-Pure™ pigment through customer-centered innovation
|
Q4 2023 |
Q4 2022 |
Change |
FY 2023 |
FY 2022 |
Change |
|
Titanium Technologies |
|
|
|
|
|
|
|
Net sales ($ millions) |
|
|
7% |
|
|
(21)% |
|
Adjusted EBITDA ($ millions) |
|
|
52% |
|
|
(52)% |
|
Adjusted EBITDA Margin |
10% |
7% |
3 ppts |
11% |
18% |
(7) ppts |
___________________________________________ | |
3 |
Recorded in the quarter ended |
TT segment fourth quarter 2023 Net Sales were
Versus the prior-year quarter, Adjusted EBITDA increased by 52% to
TT segment full year 2023 Net Sales were
Versus the prior year, 2023 Adjusted EBITDA decreased by 52% to
Thermal & Specialized Solutions (TSS)
Driving innovation in low global warming potential thermal management solutions to support customer transitions to more sustainable products
Q4 2023 |
Q4 2022 |
Change |
|
FY 2023 |
FY 2022 |
Change |
|
Thermal & Specialized Solutions |
|
|
|
|
|
|
|
Net sales ($ millions) |
|
|
17% |
|
|
|
8% |
Adjusted EBITDA ($ millions) |
|
|
130% |
|
|
|
14% |
Adjusted EBITDA Margin |
33% |
17% |
16 ppts |
|
38% |
36% |
2 ppts |
TSS segment fourth quarter 2023 Net Sales were
Versus the prior-year quarter, Adjusted EBITDA increased by 130% year-over-year to
TSS segment full year 2023 Net Sales were
Versus the prior year, 2023 Adjusted EBITDA increased by 14% year-over-year to
Advanced Performance Materials (APM)
Leading with essential chemistry for innovative and sustainable solutions in diverse industries, from clean energy to advanced electronics and beyond
Q4 2023 |
Q4 2022 |
Change |
|
FY 2023 |
FY 2022 |
Change |
|
Advanced Performance Materials |
|
|
|
|
|
|
|
Net sales ($ millions) |
|
|
(15)% |
|
|
|
(11)% |
Adjusted EBITDA ($ millions) |
|
|
(34)% |
|
|
|
(26)% |
Adjusted EBITDA Margin |
12% |
16% |
(4) ppts |
|
19% |
23% |
(4) ppts |
APM segment fourth quarter 2023 Net Sales were
Performance Solutions portfolio’s fourth quarter 2023 Net Sales were
Versus the prior-year quarter, Adjusted EBITDA was
APM segment full year 2023 Net Sales were
Performance Solutions portfolio’s full year 2023 Net Sales were
Versus the prior year, 2023 Adjusted EBITDA decreased by 26% to
Other Segment
The Performance Chemicals and Intermediates business in the Company’s Other Segment had
Corporate Expenses 4
Corporate Expenses were
___________________________________________ | |
4 |
Previously reported as Corporate and Other and excludes unallocated items. |
Liquidity
As of
Cash provided by operating activities was
During the year, the Company repurchased
Cash provided by operating activities for the fourth quarter of 2023, which includes certain PFAS-related litigation settlements of
While the Company has historically generated operating cash flows through various past industry and economic cycles, the Company sees a historical pattern of seasonality, comprising a working capital use of cash in the first half of the year, primarily driven by seasonal accounts receivable timing. During the second half of 2024, the Company expects a working capital source of cash as it sells product from inventory and collects receivables from customers. Based on these seasonal trends and the impact of the net working capital actions, the Company currently expects its unrestricted cash and cash equivalents balance to decrease by approximately
On
Outlook
The Company expects an approximate 10% sequential decline in TT
TSS is expected to grow approximately 20% sequentially in both
For APM, the Company projects a sequential decline of approximately 10% in
APM is nearing typical cycle lows, and, given where the Advanced Materials portfolio sits in the value chain, the Company expects the business to lag overall market recovery by about six to nine months. The Performance Solutions portfolio remains the growth engine for APM. However, in the near-term, Performance Solutions’ growth path is facing two temporary headwinds – capacity constraints driven by pending permit approvals and slower than expected development of the hydrogen market.
Corporate expenses impacting Adjusted EBITDA for first quarter 2024 are expected to be higher by approximately
We expect first quarter 2024 Operating Cash Flow to be an outflow of approximately
For the first quarter 2024, we expect consolidated
Audit Committee Internal Review Update
The Company provided an update regarding its previously announced Audit Committee Internal Review in a separate release issued today and in the Form 10-K.
Conference Call
As previously announced, Chemours will hold a conference call and webcast on
About
For more information, we invite you to visit chemours.com or follow us on X (formerly Twitter) @Chemours or on LinkedIn.
Non-GAAP Financial Measures
We prepare our financial statements in accordance with Generally Accepted Accounting Principles (GAAP). Within this press release, we may make reference to Adjusted Net Income, Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Total Debt Principal, Net and Net Leverage Ratio which are non-GAAP financial measures. 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, Adjusted EPS, Adjusted EBITDA, and Adjusted EBITDA Margin, which adjust for (i) certain non-cash items, (ii) certain items we believe are not indicative of ongoing operating performance or (iii) certain nonrecurring, unusual or infrequent items to evaluate the Company's performance in order to have comparable financial results to analyze changes in our underlying business from period to period. Additionally, Total Debt Principal, Net and Net Leverage Ratio are utilized as liquidity measures to assess the cash generation of our businesses and on-going liquidity position.
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
Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which 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 a historical or current fact. The words "believe," "expect," "will," "anticipate," "plan," "estimate," "target," "project" and similar expressions, among others, generally identify "forward-looking statements," which speak only as of the date such statements were made. These forward-looking statements may address, among other things, guidance on Company and segment performance for the first quarter of 2024 and expectations with respect to working capital during the first and second halves of 2024. Forward-looking statements are based on certain assumptions and expectations of future events that may not be accurate or realized, such as guidance relying on models based upon management assumptions regarding future events that are inherently uncertain. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties including the outcome or resolution of any pending or future environmental liabilities, the commencement, outcome or resolution of any regulatory inquiry, investigation or proceeding, the initiation, outcome or settlement of any litigation, remediation of material weaknesses and internal control over financial reporting, changes in environmental regulations in the
Consolidated Statements of Operations (Unaudited) (Dollars in millions, except per share amounts) |
||||||||||||
|
|
Year Ended |
|
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|||
Net sales |
|
$ |
6,027 |
|
|
$ |
6,794 |
|
|
$ |
6,345 |
|
Cost of goods sold |
|
|
4,721 |
|
|
|
5,178 |
|
|
|
4,964 |
|
Gross profit |
|
|
1,306 |
|
|
|
1,616 |
|
|
|
1,381 |
|
Selling, general, and administrative expense |
|
|
1,290 |
|
|
|
710 |
|
|
|
592 |
|
Research and development expense |
|
|
108 |
|
|
|
118 |
|
|
|
107 |
|
Restructuring, asset-related, and other charges |
|
|
153 |
|
|
|
16 |
|
|
|
6 |
|
Total other operating expenses |
|
|
1,551 |
|
|
|
844 |
|
|
|
705 |
|
Equity in earnings of affiliates |
|
|
45 |
|
|
|
55 |
|
|
|
43 |
|
Interest expense, net |
|
|
(208 |
) |
|
|
(163 |
) |
|
|
(185 |
) |
(Loss) gain on extinguishment of debt |
|
|
(1 |
) |
|
|
7 |
|
|
|
(21 |
) |
Other income, net |
|
|
91 |
|
|
|
70 |
|
|
|
163 |
|
(Loss) income before income taxes |
|
|
(318 |
) |
|
|
741 |
|
|
|
676 |
|
(Benefit from) provision for income taxes |
|
|
(81 |
) |
|
|
163 |
|
|
|
68 |
|
Net (loss) income |
|
|
(237 |
) |
|
|
578 |
|
|
|
608 |
|
Less: Net income attributable to non-controlling interests |
|
|
1 |
|
|
|
— |
|
|
|
— |
|
Net (loss) income attributable to Chemours |
|
$ |
(238 |
) |
|
$ |
578 |
|
|
$ |
608 |
|
Per share data |
|
|
|
|
|
|
|
|
|
|||
Basic (loss) earnings per share of common stock |
|
$ |
(1.60 |
) |
|
$ |
3.72 |
|
|
$ |
3.69 |
|
Diluted (loss) earnings per share of common stock |
|
|
(1.60 |
) |
|
|
3.65 |
|
|
|
3.60 |
|
Consolidated Balance Sheets (Unaudited) (Dollars in millions, except per share amounts) |
||||||||
|
|
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,203 |
|
|
$ |
1,102 |
|
Restricted cash and restricted cash equivalents |
|
|
604 |
|
|
|
— |
|
Accounts and notes receivable, net |
|
|
610 |
|
|
|
626 |
|
Inventories |
|
|
1,352 |
|
|
|
1,404 |
|
Prepaid expenses and other |
|
|
66 |
|
|
|
82 |
|
Total current assets |
|
|
3,835 |
|
|
|
3,214 |
|
Property, plant, and equipment |
|
|
9,412 |
|
|
|
9,387 |
|
Less: Accumulated depreciation |
|
|
(6,196 |
) |
|
|
(6,216 |
) |
Property, plant, and equipment, net |
|
|
3,216 |
|
|
|
3,171 |
|
Operating lease right-of-use assets |
|
|
260 |
|
|
|
240 |
|
|
|
|
102 |
|
|
|
102 |
|
Other intangible assets, net |
|
|
3 |
|
|
|
13 |
|
Investments in affiliates |
|
|
158 |
|
|
|
175 |
|
Restricted cash and restricted cash equivalents |
|
|
— |
|
|
|
202 |
|
Other assets |
|
|
677 |
|
|
|
523 |
|
Total assets |
|
$ |
8,251 |
|
|
$ |
7,640 |
|
Liabilities |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
1,159 |
|
|
$ |
1,233 |
|
Compensation and other employee-related cost |
|
|
89 |
|
|
|
121 |
|
Short-term and current maturities of long-term debt |
|
|
51 |
|
|
|
43 |
|
Current environmental remediation |
|
|
129 |
|
|
|
194 |
|
Other accrued liabilities |
|
|
1,058 |
|
|
|
300 |
|
Total current liabilities |
|
|
2,486 |
|
|
|
1,891 |
|
Long-term debt, net |
|
|
3,987 |
|
|
|
3,590 |
|
Operating lease liabilities |
|
|
206 |
|
|
|
198 |
|
Long-term environmental remediation |
|
|
461 |
|
|
|
474 |
|
Deferred income taxes |
|
|
44 |
|
|
|
61 |
|
Other liabilities |
|
|
328 |
|
|
|
319 |
|
Total liabilities |
|
|
7,512 |
|
|
|
6,533 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Common stock (par value |
|
|
2 |
|
|
|
2 |
|
|
|
|
(1,806 |
) |
|
|
(1,738 |
) |
Additional paid-in capital |
|
|
1,033 |
|
|
|
1,016 |
|
Retained earnings |
|
|
1,782 |
|
|
|
2,170 |
|
Accumulated other comprehensive loss |
|
|
(274 |
) |
|
|
(343 |
) |
Total Chemours stockholders’ equity |
|
|
737 |
|
|
|
1,107 |
|
Non-controlling interests |
|
|
2 |
|
|
|
— |
|
Total equity |
|
|
739 |
|
|
|
1,107 |
|
Total liabilities and equity |
|
$ |
8,251 |
|
|
$ |
7,640 |
|
Certain prior period amounts have been revised to correct for certain immaterial errors related to the financial statement presentation of a supplier financing program, which is more fully described in our Annual Report on Form 10-K for the year ended |
Consolidated Statements of Cash Flows (Unaudited) (Dollars in millions) |
||||||||||||
|
|
Year Ended |
|
|||||||||
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|||
Net (loss) income |
|
$ |
(237 |
) |
|
$ |
578 |
|
|
$ |
608 |
|
Adjustments to reconcile net income to cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
|||
Depreciation and amortization |
|
|
307 |
|
|
|
291 |
|
|
|
317 |
|
Gain on sales of assets and businesses, net |
|
|
(110 |
) |
|
|
(21 |
) |
|
|
(115 |
) |
Equity in earnings of affiliates, net |
|
|
11 |
|
|
|
(22 |
) |
|
|
(11 |
) |
Loss (gain) on extinguishment of debt |
|
|
1 |
|
|
|
(7 |
) |
|
|
21 |
|
Amortization of debt issuance costs and issue discounts |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
Deferred tax (benefit) provision |
|
|
(158 |
) |
|
|
20 |
|
|
|
(77 |
) |
Asset-related charges |
|
|
95 |
|
|
|
5 |
|
|
|
— |
|
Stock-based compensation expense |
|
|
18 |
|
|
|
27 |
|
|
|
34 |
|
Net periodic pension cost |
|
|
9 |
|
|
|
9 |
|
|
|
6 |
|
Defined benefit plan contributions |
|
|
(10 |
) |
|
|
(10 |
) |
|
|
(17 |
) |
Other operating charges and credits, net |
|
|
1 |
|
|
|
(21 |
) |
|
|
18 |
|
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
|
|||
Accounts and notes receivable, net |
|
|
(10 |
) |
|
|
91 |
|
|
|
(225 |
) |
Inventories and other current operating assets |
|
|
58 |
|
|
|
(294 |
) |
|
|
(210 |
) |
Other non-current operating assets |
|
|
— |
|
|
|
(96 |
) |
|
|
8 |
|
(Decrease) increase in operating liabilities: |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
|
(72 |
) |
|
|
105 |
|
|
|
281 |
|
Other current operating liabilities |
|
|
642 |
|
|
|
(47 |
) |
|
|
97 |
|
Non-current operating liabilities |
|
|
2 |
|
|
|
138 |
|
|
|
70 |
|
Cash provided by operating activities |
|
|
556 |
|
|
|
755 |
|
|
|
814 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|||
Purchases of property, plant, and equipment |
|
|
(370 |
) |
|
|
(307 |
) |
|
|
(277 |
) |
Proceeds from sales of assets and businesses, net of cash divested |
|
|
143 |
|
|
|
33 |
|
|
|
508 |
|
Foreign exchange contract settlements, net |
|
|
(8 |
) |
|
|
3 |
|
|
|
(12 |
) |
Other investing activities |
|
|
6 |
|
|
|
(13 |
) |
|
|
1 |
|
Cash (used for) provided by investing activities |
|
|
(229 |
) |
|
|
(284 |
) |
|
|
220 |
|
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|||
Proceeds from issuance of debt, net |
|
|
648 |
|
|
|
— |
|
|
|
650 |
|
Debt repayments |
|
|
(280 |
) |
|
|
(68 |
) |
|
|
(854 |
) |
Payments related to extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
(18 |
) |
Payments of debt issuance costs |
|
|
(4 |
) |
|
|
(1 |
) |
|
|
(11 |
) |
Payments on finance leases |
|
|
(11 |
) |
|
|
(11 |
) |
|
|
(10 |
) |
Proceeds from supplier financing programs |
|
|
123 |
|
|
|
105 |
|
|
|
91 |
|
Payments to supplier financing program |
|
|
(87 |
) |
|
|
(106 |
) |
|
|
(85 |
) |
Purchases of treasury stock, at cost |
|
|
(69 |
) |
|
|
(495 |
) |
|
|
(173 |
) |
Proceeds from exercised stock options |
|
|
19 |
|
|
|
51 |
|
|
|
23 |
|
Payments related to tax withheld on vested stock awards |
|
|
(19 |
) |
|
|
(6 |
) |
|
|
(2 |
) |
Payments of dividends to the Company's common shareholders |
|
|
(149 |
) |
|
|
(154 |
) |
|
|
(164 |
) |
Cash received (distributions to) non-controlling interest shareholders |
|
|
1 |
|
|
|
(1 |
) |
|
|
(1 |
) |
Cash provided by (used for) financing activities |
|
|
172 |
|
|
|
(686 |
) |
|
|
(554 |
) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
4 |
|
|
|
(32 |
) |
|
|
(34 |
) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
503 |
|
|
|
(247 |
) |
|
|
446 |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents at |
|
|
1,304 |
|
|
|
1,551 |
|
|
|
1,105 |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents at |
|
$ |
1,807 |
|
|
$ |
1,304 |
|
|
$ |
1,551 |
|
|
|
|
|
|
|
|
|
|
|
|||
Supplemental cash flows information |
|
|
|
|
|
|
|
|
|
|||
Cash paid during the year for: |
|
|
|
|
|
|
|
|
|
|||
Interest, net of amounts capitalized |
|
$ |
223 |
|
|
$ |
164 |
|
|
$ |
180 |
|
Income taxes, net of refunds |
|
|
54 |
|
|
|
131 |
|
|
|
149 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|||
Purchases of property, plant, and equipment included in accounts payable |
|
$ |
82 |
|
|
$ |
79 |
|
|
$ |
89 |
|
|
|
|
— |
|
|
|
1 |
|
|
|
4 |
|
Certain prior period amounts have been revised to correct for certain immaterial errors related to the financial statement presentation of a supplier financing program, which is more fully described in our Annual Report on Form 10-K for the year ended |
Segment Financial and Operating Data (Unaudited) (Dollars in millions) |
||||||||||||||||||||||||
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Three Months Ended |
|
|
Increase / |
|
|
Three Months Ended
|
|
|
Sequential
|
|
|||||||||||||
|
2023 |
|
|
2022 |
|
|
(Decrease) |
|
|
2023 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
651 |
|
|
$ |
|
606 |
|
|
$ |
|
45 |
|
|
$ |
|
690 |
|
|
$ |
|
(39 |
) |
Thermal & Specialized Solutions |
|
|
374 |
|
|
|
|
320 |
|
|
|
|
54 |
|
|
|
|
436 |
|
|
|
|
(62 |
) |
Advanced Performance Materials |
|
|
325 |
|
|
|
|
382 |
|
|
|
|
(57 |
) |
|
|
|
343 |
|
|
|
|
(18 |
) |
Other Segment |
|
|
11 |
|
|
|
|
30 |
|
|
|
|
(19 |
) |
|
|
|
18 |
|
|
|
|
(7 |
) |
Total |
$ |
|
1,361 |
|
|
$ |
|
1,338 |
|
|
$ |
|
23 |
|
|
$ |
|
1,487 |
|
|
$ |
|
(126 |
) |
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Three Months Ended |
|
|
Increase / |
|
|
Three Months Ended
|
|
|
Sequential
|
|
|||||||||||||
|
2023 |
|
|
2022 |
|
|
(Decrease) |
|
|
2023 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
64 |
|
|
$ |
|
42 |
|
|
$ |
|
22 |
|
|
$ |
|
69 |
|
|
$ |
|
(5 |
) |
Thermal & Specialized Solutions |
$ |
|
124 |
|
|
$ |
|
54 |
|
|
$ |
|
70 |
|
|
$ |
|
162 |
|
|
$ |
|
(38 |
) |
Advanced Performance Materials |
$ |
|
40 |
|
|
$ |
|
61 |
|
|
$ |
|
(21 |
) |
|
$ |
|
68 |
|
|
$ |
|
(28 |
) |
Other Segment |
$ |
|
— |
|
|
$ |
|
1 |
|
|
$ |
|
(1 |
) |
|
$ |
|
2 |
|
|
$ |
|
(2 |
) |
Quarterly Change in |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Percentage Change Due To |
|
|||||||||||||
|
|
|
|
Percentage Change vs.
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,361 |
|
|
|
2 |
% |
|
(1 |
)% |
|
3 |
% |
|
1 |
% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Titanium Technologies |
$ |
|
651 |
|
|
|
7 |
% |
|
(6 |
)% |
|
12 |
% |
|
1 |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
374 |
|
|
|
17 |
% |
|
6 |
% |
|
10 |
% |
|
1 |
% |
|
— |
% |
Advanced Performance Materials |
|
|
325 |
|
|
|
(15 |
)% |
|
2 |
% |
|
(18 |
)% |
|
1 |
% |
|
— |
% |
Other Segment |
|
|
11 |
|
|
|
(63 |
)% |
|
3 |
% |
|
(19 |
)% |
|
— |
% |
|
(47 |
)% |
Quarterly Change in |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
Percentage Change Due To |
|
|||||||||||||
|
|
|
|
Percentage Change vs.
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,361 |
|
|
|
(8 |
)% |
|
(2 |
)% |
|
(5 |
)% |
|
(1 |
)% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Titanium Technologies |
$ |
|
651 |
|
|
|
(6 |
)% |
|
(2 |
)% |
|
(3 |
)% |
|
(1 |
)% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
374 |
|
|
|
(14 |
)% |
|
(1 |
)% |
|
(13 |
)% |
|
— |
% |
|
— |
% |
Advanced Performance Materials |
|
|
325 |
|
|
|
(5 |
)% |
|
(5 |
)% |
|
1 |
% |
|
(1 |
)% |
|
— |
% |
Other Segment |
|
|
11 |
|
|
|
(39 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
|
(39 |
)% |
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(Dollars in millions)
GAAP Net Income (Loss) Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA Reconciliation
GAAP Net Leverage Ratio to Non-GAAP Net Leverage Ratio Reconciliation
Adjusted earnings before interest, taxes, depreciation, and amortization (“Adjusted EBITDA”) is defined as income (loss) before income taxes, excluding the following items: interest expense, depreciation, and amortization; non-operating pension and other post-retirement employee benefit costs, which represents the components of net periodic pension costs excluding the service cost component; exchange (gains) losses included in other income (expense), net; restructuring, asset-related, and other charges; (gains) losses on sales of businesses or assets; and, other items not considered indicative of the Company’s ongoing operational performance and expected to occur infrequently, including certain litigation related and environmental charges and Qualified Spend reimbursable by DuPont and/or Corteva as part of the Company's cost-sharing agreement under the terms of the MOU that were previously excluded from Adjusted EBITDA. Adjusted Net Income is defined as net income (loss) attributable to Chemours, adjusted for items excluded from Adjusted EBITDA, except interest expense, depreciation, amortization, and certain provision for (benefit from) income tax amounts. Net Leverage Ratio is defined as our total debt principal, net, or our total debt principal outstanding less unrestricted cash and cash equivalents, divided by Adjusted EBITDA.
The Company revised its
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
As previously reported |
|
|
As revised |
|
|
As previously reported |
|
|
As revised |
|
||||||||
Net income (loss) attributable to Chemours |
|
$ |
|
20 |
|
|
$ |
|
12 |
|
|
$ |
|
(212 |
) |
|
$ |
|
(220 |
) |
Non-operating pension and other post-retirement employee benefit income |
|
|
|
1 |
|
|
|
|
1 |
|
|
|
|
1 |
|
|
|
|
1 |
|
Exchange losses, net |
|
|
|
9 |
|
|
|
|
9 |
|
|
|
|
21 |
|
|
|
|
21 |
|
Restructuring, asset-related, and other charges (1) |
|
|
|
153 |
|
|
|
|
127 |
|
|
|
|
168 |
|
|
|
|
142 |
|
Loss on extinguishment of debt |
|
|
|
1 |
|
|
|
|
1 |
|
|
|
|
1 |
|
|
|
|
1 |
|
Gain on sales of assets and businesses, net (2) |
|
|
|
(106 |
) |
|
|
|
(106 |
) |
|
|
|
(106 |
) |
|
|
|
(106 |
) |
Transaction costs (3) |
|
|
|
7 |
|
|
|
|
7 |
|
|
|
|
7 |
|
|
|
|
7 |
|
Qualified spend recovery (4) |
|
|
|
(11 |
) |
|
|
|
(11 |
) |
|
|
|
(43 |
) |
|
|
|
(43 |
) |
Litigation-related charges (5) |
|
|
|
31 |
|
|
|
|
31 |
|
|
|
|
675 |
|
|
|
|
675 |
|
Environmental charges (6) |
|
|
|
8 |
|
|
|
|
8 |
|
|
|
|
9 |
|
|
|
|
9 |
|
Adjustments made to income taxes (7) |
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
|
(5 |
) |
|
|
|
(5 |
) |
Benefit from income taxes relating to reconciling items (8) |
|
|
|
(16 |
) |
|
|
|
(13 |
) |
|
|
|
(107 |
) |
|
|
|
(104 |
) |
Adjusted Net Income |
|
|
|
96 |
|
|
|
|
65 |
|
|
|
|
409 |
|
|
|
|
378 |
|
Net income attributable to non-controlling interests |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
1 |
|
Interest expense, net |
|
|
|
55 |
|
|
|
|
55 |
|
|
|
|
145 |
|
|
|
|
145 |
|
Depreciation and amortization |
|
|
|
76 |
|
|
|
|
76 |
|
|
|
|
233 |
|
|
|
|
233 |
|
All remaining provision for income taxes |
|
|
|
20 |
|
|
|
|
15 |
|
|
|
|
86 |
|
|
|
|
81 |
|
Adjusted EBITDA |
|
$ |
|
247 |
|
|
$ |
|
211 |
|
|
$ |
|
874 |
|
|
$ |
|
838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of common shares outstanding - basic |
|
|
|
148,623,633 |
|
|
|
|
148,623,633 |
|
|
|
|
148,929,580 |
|
|
|
|
148,929,580 |
|
Weighted-average number of common shares outstanding - diluted (10) |
|
|
|
150,185,638 |
|
|
|
|
150,185,638 |
|
|
|
|
150,683,368 |
|
|
|
|
150,683,368 |
|
Basic earnings (loss) per share of common stock (11) |
|
$ |
|
0.13 |
|
|
$ |
|
0.08 |
|
|
$ |
|
(1.42 |
) |
|
$ |
|
(1.47 |
) |
Diluted earnings (loss) per share of common stock (10) (11) |
|
|
|
0.13 |
|
|
|
|
0.08 |
|
|
|
|
(1.42 |
) |
|
|
|
(1.47 |
) |
Adjusted basic earnings per share of common stock (11) |
|
|
|
0.64 |
|
|
|
|
0.44 |
|
|
|
|
2.75 |
|
|
|
|
2.55 |
|
Adjusted diluted earnings per share of common stock (10) (11) |
|
|
|
0.63 |
|
|
|
|
0.43 |
|
|
|
|
2.71 |
|
|
|
|
2.52 |
|
GAAP Net Income (Loss) Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA Reconciliation GAAP Net Leverage Ratio to Non-GAAP Net Leverage Ratio Reconciliation (Continued) |
|||||||||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
|
||||||||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
||||||||
(Loss) income before income taxes |
|
$ |
|
(71 |
) |
|
$ |
|
(69 |
) |
|
|
$ |
|
(318 |
) |
|
$ |
|
741 |
|
Net (loss) income attributable to Chemours |
|
|
|
(18 |
) |
|
|
|
(97 |
) |
|
|
|
|
(238 |
) |
|
|
|
578 |
|
Non-operating pension and other post-retirement employee benefit (cost) income |
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
|
|
— |
|
|
|
|
(5 |
) |
Exchange losses, net |
|
|
|
17 |
|
|
|
|
26 |
|
|
|
|
|
38 |
|
|
|
|
15 |
|
Restructuring, asset-related, and other charges (1) |
|
|
|
11 |
|
|
|
|
1 |
|
|
|
|
|
153 |
|
|
|
|
15 |
|
Loss (gain) on extinguishment of debt |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
1 |
|
|
|
|
(7 |
) |
(Gain) loss on sales of assets and businesses, net (2) |
|
|
|
(4 |
) |
|
|
|
5 |
|
|
|
|
|
(110 |
) |
|
|
|
(21 |
) |
Transaction costs (3) |
|
|
|
9 |
|
|
|
|
— |
|
|
|
|
|
16 |
|
|
|
|
— |
|
Qualified spend recovery (4) |
|
|
|
(11 |
) |
|
|
|
(17 |
) |
|
|
|
|
(54 |
) |
|
|
|
(58 |
) |
Litigation-related charges (5) |
|
|
|
89 |
|
|
|
|
38 |
|
|
|
|
|
764 |
|
|
|
|
23 |
|
Environmental charges (6) |
|
|
|
— |
|
|
|
|
22 |
|
|
|
|
|
9 |
|
|
|
|
204 |
|
Adjustments made to income taxes (7) |
|
|
|
(14 |
) |
|
|
|
39 |
|
|
|
|
|
(19 |
) |
|
|
|
30 |
|
Benefit from income taxes relating to reconciling items (8) |
|
|
|
(32 |
) |
|
|
|
(16 |
) |
|
|
|
|
(135 |
) |
|
|
|
(36 |
) |
Adjusted Net Income |
|
|
|
46 |
|
|
|
|
— |
|
|
|
|
|
425 |
|
|
|
|
738 |
|
Net income attributable to non-controlling interests |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
|
1 |
|
|
|
|
— |
|
Interest expense, net |
|
|
|
63 |
|
|
|
|
41 |
|
|
|
|
|
208 |
|
|
|
|
163 |
|
Depreciation and amortization |
|
|
|
74 |
|
|
|
|
74 |
|
|
|
|
|
307 |
|
|
|
|
291 |
|
All remaining provision for income taxes |
|
|
|
(7 |
) |
|
|
|
5 |
|
|
|
|
|
73 |
|
|
|
|
169 |
|
Adjusted EBITDA |
|
$ |
|
176 |
|
|
$ |
|
120 |
|
|
|
$ |
|
1,014 |
|
|
$ |
|
1,361 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total debt principal |
|
|
|
|
|
|
|
|
|
|
$ |
|
4,084 |
|
|
$ |
|
3,641 |
|
||
Less: Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
(1,203 |
) |
|
|
|
(1,102 |
) |
||
Total debt principal, net |
|
|
|
|
|
|
|
|
|
|
$ |
|
2,881 |
|
|
$ |
|
2,539 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net Leverage Ratio (calculated using GAAP earnings) (9) |
|
|
|
|
|
|
|
|
|
|
|
(9.1x) |
|
|
|
3.4x |
|
||||
Net Leverage Ratio (calculated using Non-GAAP earnings) (9) |
|
|
|
|
|
|
|
|
|
|
|
2.8x |
|
|
|
1.9x |
|
GAAP Net Income (Loss) Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA Reconciliation
GAAP Net Leverage Ratio to Non-GAAP Net Leverage Ratio Reconciliation (Continued)
(1) |
Refer to "Note 7 – Restructuring, Asset-related, and Other Charges" to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended |
(2) |
Refer to “Note 8 – Other Income (Expense), Net” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended |
(3) |
Includes |
(4) |
Qualified spend recovery represents costs and expenses that were previously excluded from Adjusted EBITDA, reimbursable by DuPont and/or Corteva as part of our cost-sharing agreement under the terms of the MOU which is discussed in further detail in "Note 22 – Commitments and Contingent Liabilities" to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended |
(5) |
Litigation-related charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other related legal fees. For the year ended |
(6) |
Environmental charges pertains to management’s assessment of estimated liabilities associated with certain environmental remediation expenses at various sites. In 2022, environmental charges include |
(7) |
Includes the removal of certain discrete income tax impacts within our provision for income taxes, such as shortfalls and windfalls on our share-based payments, certain return-to-accrual adjustments, valuation allowance adjustments, unrealized gains and losses on foreign exchange rate changes, and other discrete income tax items. |
(8) |
The income tax impacts included in this caption are determined using the applicable rates in the taxing jurisdictions in which income or expense occurred for each of the reconciling items and represent both current and deferred income tax expense or benefit based on the nature of the non-GAAP financial measure. |
(9) |
Net Leverage Ratio calculated using GAAP measures is defined as our total debt principal, net, or our total debt principal outstanding less unrestricted cash and cash equivalents, divided by (loss) income before income taxes. Net Leverage Ratio calculated using non-GAAP measures is defined as our total debt principal, net, or our total debt principal outstanding less unrestricted cash and cash equivalents, divided by Adjusted EBITDA. |
(10) |
In periods where the Company incurs a net loss, the impact of potentially dilutive securities is excluded from the calculation of EPS under |
(11) |
Figures may not recalculate exactly due to rounding. Basic and diluted earnings per share are calculated based on unrounded numbers. |
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(Dollars in millions, except per share amounts)
GAAP Earnings per Share to Adjusted Earnings per Share Reconciliation
Adjusted earnings per share (“Adjusted EPS”) is calculated by dividing Adjusted Net Income by the weighted-average number of common shares outstanding. Diluted Adjusted EPS accounts for the dilutive impact of stock-based compensation awards, which includes unvested restricted shares. Diluted Adjusted EPS considers the impact of potentially-dilutive securities, except in periods in which there is a loss because the inclusion of the potentially-dilutive securities would have an anti-dilutive effect.
|
|
Three Months Ended |
|
Year Ended |
|||||||||||
|
|
|
|
|
|
|
|||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2023 |
|
2022 |
|||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|||||
Net (loss) income attributable to Chemours |
|
$ |
(18) |
|
$ |
(97) |
|
$ |
12 |
|
$ |
(238) |
|
$ |
578 |
Adjusted Net Income |
|
|
46 |
|
|
— |
|
|
65 |
|
|
425 |
|
|
738 |
Denominator: |
|
|
|
|
|
|
|
|
|
|
|||||
Weighted-average number of common shares outstanding - basic |
|
|
148,861,410 |
|
|
150,046,614 |
|
|
148,623,633 |
|
|
148,912,397 |
|
|
155,359,361 |
Dilutive effect of the Company's employee compensation plans (1) |
|
|
1,078,467 |
|
|
2,176,565 |
|
|
1,562,005 |
|
|
1,584,958 |
|
|
2,943,646 |
Weighted-average number of common shares outstanding - diluted (1) |
|
|
149,939,877 |
|
|
152,223,179 |
|
|
150,185,638 |
|
|
150,497,355 |
|
|
158,303,007 |
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic (loss) earnings per share of common stock (2) |
|
$ |
(0.12) |
|
$ |
(0.65) |
|
$ |
0.08 |
|
$ |
(1.60) |
|
$ |
3.72 |
Diluted (loss) earnings per share of common stock (1) (2) |
|
|
(0.12) |
|
|
(0.65) |
|
|
0.08 |
|
|
(1.60) |
|
|
3.65 |
Adjusted basic earnings per share of common stock (2) |
|
|
0.31 |
|
|
0.00 |
|
|
0.44 |
|
|
2.85 |
|
|
4.75 |
Adjusted diluted earnings per share of common stock (1) (2) |
|
|
0.31 |
|
|
0.00 |
|
|
0.43 |
|
|
2.82 |
|
|
4.66 |
(1) |
In periods where the Company incurs a net loss, the impact of potentially dilutive securities is excluded from the calculation of EPS under |
|
(2) |
Figures may not recalculate exactly due to rounding. Basic and diluted earnings per share are calculated based on unrounded numbers. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327592114/en/
INVESTORS
VP, FP&A and Investor Relations
+1.302.773.3309
investor@chemours.com
Manager, Investor Relations
+1.302.773.0026
investor@chemours.com
NEWS MEDIA
Corporate Media & Brand Reputation Leader
+1.302.219.7140
media@chemours.com
Source: