The Chemours Company Reports First Quarter 2024 Results
Key First Quarter 2024 Results
-
Net Sales of$1.4 billion , down 12% year-over-year -
Net Income attributable to Chemours of
$52 million , or$0.34 per diluted share, compared with$145 million , or$0.96 per diluted share, in the corresponding prior-year quarter -
Adjusted EBITDA1,2 was
$193 million , compared to$304 million in the corresponding prior-year quarter -
Cash flows used in operations were
$290 million , and capital expenditures were$102 million -
Cash returned to shareholders through dividends of
$37 million in the quarter
“Net Sales for the first quarter were in line with our expectations across all three of our segments. Consolidated Adjusted EBITDA was higher than anticipated driven by the allocation of TiO2 volumes to higher-yield regions, the timing of lower-cost ore consumption, the strong execution of our TT Transformation Plan, and lower-than-expected corporate costs,” said Chemours CEO
Total Chemours |
|||
|
Q1 2024 |
Q1 2023 |
Change |
|
|
|
(12)% |
Adjusted EBITDA1,2(millions) |
|
|
(37)% |
Adjusted EBITDA Margin |
14% |
20% |
(6) ppts |
First quarter 2024 Net Sales of
First quarter 2024 Net Income attributable to Chemours was
________________________________ |
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. See the corresponding reconciliation referenced in footnote #1. |
3 Total costs in the first quarter of 2024 include a |
Titanium Technologies (TT) |
|||
|
Q1 2024 |
Q1 2023 |
Change |
|
|
|
(7)% |
Adjusted EBITDA (millions) |
|
|
0% |
Adjusted EBITDA Margin |
12% |
11% |
1 ppt |
TT segment first quarter 2024 Net Sales were
Versus the prior-year quarter, Adjusted EBITDA was flat at
On a sequential basis,
Thermal & Specialized Solutions (TSS) |
|||
|
Q1 2024 |
Q1 2023 |
Change |
|
|
|
(8)% |
Adjusted EBITDA (millions) |
|
|
(18)% |
Adjusted EBITDA Margin |
34% |
38% |
(4) ppts |
TSS segment first quarter 2024 Net Sales were
Versus the prior-year quarter, Adjusted EBITDA decreased 18% to
On a sequential basis,
Advanced Performance Materials (APM) |
|||
|
Q1 2024 |
Q1 2023 |
Change |
|
|
|
(23)% |
Adjusted EBITDA (millions) |
|
|
(64)% |
Adjusted EBITDA Margin |
10% |
22% |
(12) ppts |
APM segment first quarter 2024 Net Sales were
First quarter 2024 Net Sales for the Performance Solutions product portfolio were
Versus the prior-year quarter, Adjusted EBITDA was
On a sequential basis,
Other Segment
The Performance Chemicals and Intermediates business in the Company’s Other Segment had
Corporate Expenses
Corporate Expenses were a
Liquidity
As of
Cash used in operating activities for the first quarter 2024 was
The Company exhibits a historical pattern of first-half working capital use of cash, primarily driven by the timing of sales and inventory seasonality. The Company currently expects unrestricted cash and cash equivalents to remain relatively flat through the end of the second quarter of 2024. The Company expects a working capital source of cash in the second half of the year as it sells product from inventory and collects receivables from customers.
Outlook
In the second quarter of 2024, the Company expects TT to achieve sequential
In TSS, the Company expects mid-teens sequential growth for both
APM expects sequential
Corporate Expenses, as an offset to Adjusted EBITDA, for the second quarter of 2024 are expected to be higher by approximately
The Company expects Operating Cash Flow to reflect a total usage of approximately
For the second quarter of 2024, the Company expects consolidated
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 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 second quarter 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) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Net sales |
|
$ |
1,350 |
|
|
$ |
1,536 |
|
Cost of goods sold |
|
|
1,064 |
|
|
|
1,168 |
|
Gross profit |
|
|
286 |
|
|
|
368 |
|
Selling, general, and administrative expense |
|
|
142 |
|
|
|
124 |
|
Research and development expense |
|
|
28 |
|
|
|
26 |
|
Restructuring, asset-related, and other charges |
|
|
4 |
|
|
|
16 |
|
Total other operating expenses |
|
|
174 |
|
|
|
166 |
|
Equity in earnings of affiliates |
|
|
13 |
|
|
|
12 |
|
Interest expense, net |
|
|
(63 |
) |
|
|
(42 |
) |
Other income, net |
|
|
5 |
|
|
|
1 |
|
Income before income taxes |
|
|
67 |
|
|
|
173 |
|
Provision for income taxes |
|
|
15 |
|
|
|
28 |
|
Net income |
|
|
52 |
|
|
|
145 |
|
Net income attributable to Chemours |
|
$ |
52 |
|
|
$ |
145 |
|
Per share data |
|
|
|
|
|
|
||
Basic earnings per share of common stock |
|
$ |
0.35 |
|
|
$ |
0.97 |
|
Diluted earnings per share of common stock |
|
|
0.34 |
|
|
|
0.96 |
|
Consolidated Balance Sheets (Unaudited) (Dollars in millions, except per share amounts) |
||||||||
|
|
|
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
746 |
|
|
$ |
1,203 |
|
Restricted cash and restricted cash equivalents |
|
|
607 |
|
|
|
604 |
|
Accounts and notes receivable, net |
|
|
792 |
|
|
|
610 |
|
Inventories |
|
|
1,391 |
|
|
|
1,352 |
|
Prepaid expenses and other |
|
|
61 |
|
|
|
66 |
|
Total current assets |
|
|
3,597 |
|
|
|
3,835 |
|
Property, plant, and equipment |
|
|
9,469 |
|
|
|
9,412 |
|
Less: Accumulated depreciation |
|
|
(6,260 |
) |
|
|
(6,196 |
) |
Property, plant, and equipment, net |
|
|
3,209 |
|
|
|
3,216 |
|
Operating lease right-of-use assets |
|
|
252 |
|
|
|
260 |
|
|
|
|
102 |
|
|
|
102 |
|
Other intangible assets, net |
|
|
3 |
|
|
|
3 |
|
Investments in affiliates |
|
|
165 |
|
|
|
158 |
|
Other assets |
|
|
650 |
|
|
|
677 |
|
Total assets |
|
$ |
7,978 |
|
|
$ |
8,251 |
|
Liabilities |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
963 |
|
|
$ |
1,159 |
|
Compensation and other employee-related cost |
|
|
79 |
|
|
|
89 |
|
Short-term and current maturities of long-term debt |
|
|
41 |
|
|
|
51 |
|
Current environmental remediation |
|
|
129 |
|
|
|
129 |
|
Other accrued liabilities |
|
|
1,019 |
|
|
|
1,058 |
|
Total current liabilities |
|
|
2,231 |
|
|
|
2,486 |
|
Long-term debt, net |
|
|
3,968 |
|
|
|
3,987 |
|
Operating lease liabilities |
|
|
198 |
|
|
|
206 |
|
Long-term environmental remediation |
|
|
452 |
|
|
|
461 |
|
Deferred income taxes |
|
|
44 |
|
|
|
44 |
|
Other liabilities |
|
|
331 |
|
|
|
328 |
|
Total liabilities |
|
|
7,224 |
|
|
|
7,512 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Common stock (par value |
|
|
2 |
|
|
|
2 |
|
|
|
|
(1,806 |
) |
|
|
(1,806 |
) |
Additional paid-in capital |
|
|
1,033 |
|
|
|
1,033 |
|
Retained earnings |
|
|
1,797 |
|
|
|
1,782 |
|
Accumulated other comprehensive loss |
|
|
(274 |
) |
|
|
(274 |
) |
Total Chemours stockholders’ equity |
|
|
752 |
|
|
|
737 |
|
Non-controlling interests |
|
|
2 |
|
|
|
2 |
|
Total equity |
|
|
754 |
|
|
|
739 |
|
Total liabilities and equity |
|
$ |
7,978 |
|
|
$ |
8,251 |
|
Consolidated Statements of Cash Flows (Unaudited) (Dollars in millions) |
||||||||
|
|
Three Months Ended |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
52 |
|
|
$ |
145 |
|
Adjustments to reconcile net income to cash (used for) provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
71 |
|
|
|
79 |
|
Gain on sales of assets and businesses |
|
|
(3 |
) |
|
|
— |
|
Equity in earnings of affiliates, net |
|
|
(11 |
) |
|
|
(9 |
) |
Amortization of debt issuance costs and issue discounts |
|
|
3 |
|
|
|
2 |
|
Deferred tax (benefit) provision |
|
|
(1 |
) |
|
|
1 |
|
Asset-related charges |
|
|
— |
|
|
|
11 |
|
Stock-based compensation expense |
|
|
1 |
|
|
|
4 |
|
Net periodic pension cost |
|
|
1 |
|
|
|
2 |
|
Defined benefit plan contributions |
|
|
(4 |
) |
|
|
(5 |
) |
Other operating charges and credits, net |
|
|
(11 |
) |
|
|
(4 |
) |
Decrease (increase) in operating assets: |
|
|
|
|
|
|
||
Accounts and notes receivable, net |
|
|
(177 |
) |
|
|
(205 |
) |
Inventories and other current operating assets |
|
|
(34 |
) |
|
|
(52 |
) |
Other non-current operating assets |
|
|
31 |
|
|
|
20 |
|
(Decrease) increase in operating liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
|
(157 |
) |
|
|
(44 |
) |
Other current operating liabilities |
|
|
(46 |
) |
|
|
(72 |
) |
Other non-current operating liabilities |
|
|
(5 |
) |
|
|
3 |
|
Cash used for operating activities |
|
|
(290 |
) |
|
|
(124 |
) |
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
(102 |
) |
|
|
(91 |
) |
Proceeds from sales of assets and businesses |
|
|
3 |
|
|
|
— |
|
Foreign exchange contract settlements, net |
|
|
(2 |
) |
|
|
(6 |
) |
Cash used for investing activities |
|
|
(101 |
) |
|
|
(97 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Debt repayments |
|
|
(3 |
) |
|
|
(3 |
) |
Payments on finance leases |
|
|
(3 |
) |
|
|
(3 |
) |
Proceeds from supplier financing program |
|
|
27 |
|
|
|
23 |
|
Payments to supplier financing program |
|
|
(37 |
) |
|
|
(18 |
) |
Purchases of treasury stock, at cost |
|
|
— |
|
|
|
(14 |
) |
Proceeds from exercised stock options, net |
|
|
1 |
|
|
|
2 |
|
Payments related to tax withholdings on vested stock awards |
|
|
(2 |
) |
|
|
(18 |
) |
Payments of dividends to the Company's common shareholders |
|
|
(37 |
) |
|
|
(37 |
) |
Cash used for financing activities |
|
|
(54 |
) |
|
|
(68 |
) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
(9 |
) |
|
|
6 |
|
Decrease in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
(454 |
) |
|
|
(283 |
) |
Cash, cash equivalents, restricted cash and restricted cash equivalents at |
|
|
1,807 |
|
|
|
1,304 |
|
Cash, cash equivalents, restricted cash and restricted cash equivalents at |
|
$ |
1,353 |
|
|
$ |
1,021 |
|
|
|
|
|
|
|
|
||
Supplemental cash flows information |
|
|
|
|
|
|
||
Non-cash investing and financing activities: |
|
|
|
|
|
|
||
Purchases of property, plant, and equipment included in accounts payable |
|
$ |
44 |
|
|
$ |
34 |
|
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) |
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Segment |
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|
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|
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|
Three Months |
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|
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|
||||||
|
|
|
|
|
|
|
Ended |
|
|
Sequential |
|
|||||||||||||
|
Three Months Ended |
|
|
Increase / |
|
|
|
|
|
Increase / |
|
|||||||||||||
|
2024 |
|
|
2023 |
|
|
(Decrease) |
|
|
2023 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
588 |
|
|
$ |
|
632 |
|
|
$ |
|
(44 |
) |
|
$ |
|
651 |
|
|
$ |
|
(63 |
) |
Thermal & Specialized Solutions |
|
|
449 |
|
|
|
|
486 |
|
|
|
|
(37 |
) |
|
|
|
374 |
|
|
|
|
75 |
|
Advanced Performance Materials |
|
|
299 |
|
|
|
|
388 |
|
|
|
|
(89 |
) |
|
|
|
325 |
|
|
|
|
(26 |
) |
Other Segment |
|
|
14 |
|
|
|
|
30 |
|
|
|
|
(16 |
) |
|
|
|
11 |
|
|
|
|
3 |
|
Total |
$ |
|
1,350 |
|
|
$ |
|
1,536 |
|
|
$ |
|
(186 |
) |
|
$ |
|
1,361 |
|
|
$ |
|
(11 |
) |
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
Sequential |
|
|||||||
|
Three Months Ended |
|
|
Increase / |
|
|
|
|
|
Increase / |
|
|||||||||||||
|
2024 |
|
|
2023 |
|
|
(Decrease) |
|
|
2023 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
70 |
|
|
$ |
|
70 |
|
|
$ |
|
— |
|
|
$ |
|
64 |
|
|
$ |
|
6 |
|
Thermal & Specialized Solutions |
$ |
|
151 |
|
|
$ |
|
185 |
|
|
$ |
|
(34 |
) |
|
$ |
|
124 |
|
|
$ |
|
27 |
|
Advanced Performance Materials |
$ |
|
30 |
|
|
$ |
|
84 |
|
|
$ |
|
(54 |
) |
|
$ |
|
40 |
|
|
$ |
|
(10 |
) |
Other Segment |
$ |
|
2 |
|
|
$ |
|
10 |
|
|
$ |
|
(8 |
) |
|
$ |
|
— |
|
|
$ |
|
2 |
|
Quarterly Change in |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
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|
|
Percentage Change vs. |
|
Percentage Change Due To |
|
|||||||||||||
|
|
|
|
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,350 |
|
|
|
(12 |
)% |
|
(5 |
)% |
|
(6 |
)% |
|
— |
% |
|
(1 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Titanium Technologies |
$ |
|
588 |
|
|
|
(7 |
)% |
|
(7 |
)% |
|
— |
% |
|
— |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
449 |
|
|
|
(8 |
)% |
|
(2 |
)% |
|
(6 |
)% |
|
— |
% |
|
— |
% |
Advanced Performance Materials |
|
|
299 |
|
|
|
(23 |
)% |
|
(5 |
)% |
|
(18 |
)% |
|
— |
% |
|
— |
% |
Other Segment |
|
|
14 |
|
|
|
(53 |
)% |
|
3 |
% |
|
(14 |
)% |
|
— |
% |
|
(42 |
)% |
Quarterly Change in |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
Percentage Change vs. |
|
Percentage Change Due To |
|
|||||||||||||
|
|
|
|
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,350 |
|
|
|
(1 |
)% |
|
1 |
% |
|
(2 |
)% |
|
— |
% |
|
— |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Titanium Technologies |
$ |
|
588 |
|
|
|
(10 |
)% |
|
— |
% |
|
(10 |
)% |
|
— |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
449 |
|
|
|
20 |
% |
|
5 |
% |
|
15 |
% |
|
— |
% |
|
— |
% |
Advanced Performance Materials |
|
|
299 |
|
|
|
(8 |
)% |
|
(1 |
)% |
|
(8 |
)% |
|
1 |
% |
|
— |
% |
Other Segment |
|
|
14 |
|
|
|
27 |
% |
|
(9 |
)% |
|
36 |
% |
|
— |
% |
|
— |
% |
|
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.
|
|
Three Months Ended |
|
|
|
Twelve Months Ended |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
2024 |
|
|
2023 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||||||||
Income (loss) before income taxes |
|
$ |
|
67 |
|
|
$ |
|
173 |
|
|
$ |
|
(71 |
) |
|
$ |
|
(424 |
) |
|
$ |
|
634 |
|
Net income (loss) attributable to Chemours |
|
|
|
52 |
|
|
|
|
145 |
|
|
|
|
(18 |
) |
|
|
|
(330 |
) |
|
|
|
489 |
|
Non-operating pension and other post-retirement employee benefit income |
|
|
|
(1 |
) |
|
|
|
— |
|
|
|
|
(1 |
) |
|
|
|
(1 |
) |
|
|
|
(4 |
) |
Exchange (gains) losses, net |
|
|
|
(1 |
) |
|
|
|
7 |
|
|
|
|
17 |
|
|
|
|
30 |
|
|
|
|
23 |
|
Restructuring, asset-related, and other charges (1) |
|
|
|
4 |
|
|
|
|
16 |
|
|
|
|
11 |
|
|
|
|
141 |
|
|
|
|
15 |
|
Loss (gain) on extinguishment of debt |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
(7 |
) |
Gain on sales of assets and businesses, net (2) |
|
|
|
(3 |
) |
|
|
|
— |
|
|
|
|
(4 |
) |
|
|
|
(113 |
) |
|
|
|
(21 |
) |
Transaction costs (3) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
9 |
|
|
|
|
16 |
|
|
|
|
— |
|
Qualified spend recovery (4) |
|
|
|
(7 |
) |
|
|
|
(14 |
) |
|
|
|
(11 |
) |
|
|
|
(47 |
) |
|
|
|
(58 |
) |
Litigation-related charges (5) |
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
89 |
|
|
|
|
764 |
|
|
|
|
21 |
|
Environmental charges (6) |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
9 |
|
|
|
|
198 |
|
Adjustments made to income taxes (7) |
|
|
|
2 |
|
|
|
|
(4 |
) |
|
|
|
(14 |
) |
|
|
|
(13 |
) |
|
|
|
30 |
|
Provision for (benefit from) income taxes relating to reconciling items (8) |
|
|
|
2 |
|
|
|
|
(3 |
) |
|
|
|
(32 |
) |
|
|
|
(131 |
) |
|
|
|
(40 |
) |
Adjusted Net Income |
|
|
|
48 |
|
|
|
|
148 |
|
|
|
|
46 |
|
|
|
|
326 |
|
|
|
|
646 |
|
Net income attributable to non-controlling interests |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1 |
|
|
|
|
— |
|
Interest expense, net |
|
|
|
63 |
|
|
|
|
42 |
|
|
|
|
63 |
|
|
|
|
229 |
|
|
|
|
164 |
|
Depreciation and amortization |
|
|
|
71 |
|
|
|
|
79 |
|
|
|
|
74 |
|
|
|
|
299 |
|
|
|
|
297 |
|
All remaining provision for (benefit from) income taxes |
|
|
|
11 |
|
|
|
|
35 |
|
|
|
|
(7 |
) |
|
|
|
49 |
|
|
|
|
155 |
|
Adjusted EBITDA |
|
$ |
|
193 |
|
|
$ |
|
304 |
|
|
$ |
|
176 |
|
|
$ |
|
904 |
|
|
$ |
|
1,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Total debt principal |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
4,051 |
|
|
$ |
|
3,673 |
|
|||
Less: Cash and cash equivalents |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(746 |
) |
|
|
|
(816 |
) |
|||
Total debt principal, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
|
3,305 |
|
|
$ |
|
2,857 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net Leverage Ratio (calculated using GAAP earnings) (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(7.8x) |
|
|
|
4.5x |
|
|||||
Net Leverage Ratio (calculated using Non-GAAP earnings) (9) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.7x |
|
|
|
2.3x |
|
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 4 – Restructuring, Asset-related, and Other Charges" to the Interim Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended |
|
(2) |
For the twelve months ended |
|
(3) |
For the twelve months ended |
|
(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 16 – Commitments and Contingent Liabilities" to the Interim Consolidated Financial Statements in our Quarterly Report on Form 10-Q for the quarter ended |
|
(5) |
Litigation-related charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other related legal fees. For the twelve months ended |
|
(6) |
Environmental charges pertains to management’s assessment of estimated liabilities associated with certain environmental remediation expenses at various sites. For the twelve months ended |
|
(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 income (loss) 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. |
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 |
|
|||||||
|
|
|
|
|
|
|||||
|
|
2024 |
|
2023 |
|
2023 |
|
|||
Numerator: |
|
|
|
|
|
|
|
|
||
Net income (loss) attributable to Chemours |
|
$ |
52 |
|
$ |
145 |
|
$ |
(18) |
|
Adjusted Net Income |
|
|
48 |
|
|
148 |
|
|
46 |
|
Denominator: |
|
|
|
|
|
|
|
|||
Weighted-average number of common shares outstanding - basic |
|
|
149,035,200 |
|
|
148,997,084 |
|
|
148,861,410 |
|
Dilutive effect of the Company's employee compensation plans (1) |
|
|
1,015,169 |
|
|
2,182,181 |
|
|
1,078,467 |
|
Weighted-average number of common shares outstanding - diluted (1) |
|
|
150,050,369 |
|
|
151,179,265 |
|
|
149,939,877 |
|
|
|
|
|
|
|
|
|
|||
Basic earnings (loss) per share of common stock (2) |
|
$ |
0.35 |
|
$ |
0.97 |
|
$ |
(0.12) |
|
Diluted earnings (loss) per share of common stock (1) (2) |
|
|
0.34 |
|
|
0.96 |
|
|
(0.12) |
|
Adjusted basic earnings per share of common stock (2) |
|
|
0.32 |
|
|
0.99 |
|
|
0.31 |
|
Adjusted diluted earnings per share of common stock (1) (2) |
|
|
0.32 |
|
|
0.98 |
|
|
0.31 |
|
(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/20240430814447/en/
INVESTORS
Vice President, Investor Relations
+1.302.773.3309
investor@chemours.com
K
urt Bonner
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: