Tronox reports second quarter 2021 financial results

Stamford, conn., july 28, 2021 /prnewswire/ -- second quarter 2021 financial highlights: record revenue of $927 million increased 4 percent sequentially, driven primarily by 5 percent higher tio2 average selling prices and 5 percent higher zircon average selling prices income from operations of $150 million; net income of $77 million gaap earnings per share of $0.46; adjusted diluted eps of $0.61 (non-gaap); the difference is due to second quarter debt extinguishment costs adjusted ebitda of $237 million, in line with guidance; adjusted ebitda margin of 26 percent (non-gaap); sequential improvement driven primarily by increased tio2 and zircon selling prices tio2 sales volumes increased 1 percent sequentially, driven by continued recovery led by north america and europe zircon sales volumes continue to be very strong, but declined 5 percent sequentially from record first quarter levels as expected strong financial position and cash flow: generated a record $150 million in free cash flow in the second quarter after investing $60 million in capital expenditures continued deleveraging with debt repayments of $135 million in the second quarter and $70 million completed in july for a total of $205 million, reducing total debt to $2.8 billion dividend increase and third quarter outlook: board declared a quarterly dividend of $0.10 per share representing an increase in the quarterly dividend rate of $0.02 per share, equating to a $0.40 per share annual dividend, reflecting the board's confidence in the business model and cash flow generation capabilities the quarterly dividend will be payable on friday, september 10, 2021, to shareholders of record of the company's ordinary shares at the close of business on monday, august 9, 2021 tio2 and zircon prices expected to continue to increase tio2 sales volumes expected to decline 5-10 percent sequentially from record second quarter levels, due to supplier and logistics constraints zircon sales volumes expected to remain elevated above 2019 and 2020 quarterly volume levels, benefiting from sales from inventory, though lower than second quarter 2021 levels adjusted ebitda expected to increase to $245-$260 million despite anticipated lower sales volumes and increased production costs which will be partially offset by expected price improvements and the roll off of second quarter operational disruptions ------ note: for the company's guidance with respect to third quarter 2021 adjusted ebitda, we are not able to provide without unreasonable effort the most directly comparable gaap financial measure, or reconciliation to such gaap financial measure, because certain items that impact such measures are uncertain, out of the company's control or cannot be reasonably predicted.
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