Last10K.com

Chemours Co (CC) SEC Filing 8-K Material Event for the period ending Thursday, November 4, 2021

Chemours Co

CIK: 1627223 Ticker: CC

EXHIBIT 99.1

 

The Chemours Company Reports Strong Third Quarter Results and

Increases Full-Year 2021 Outlook

Market strength and operational excellence drove strong quarterly performance, raising outlook as confidence builds

 

Wilmington, Del., November 4, 2021 -- The Chemours Company (“Chemours”) (NYSE: CC), a global chemistry company with leading market positions in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions today announces its financial results for the third quarter 2021.

 

Third Quarter 2021 Results & Highlights

 

 

Net Sales of $1.7 billion, up 36% year-over-year

 

Net Income of $214 million with EPS of $1.27, up $0.81 year-over-year

 

Adjusted Net Income* of $214 million with Adjusted EPS* of $1.27, up $0.80 year-over-year

 

Adjusted EBITDA* of $372 million, up 77% year-over-year, resulting in Free Cash Flow of $244 million

 

Repurchased $67 million of common stock during the quarter, repaid $108 million of debt principal, and funded $100 million escrow payment as per the MOU agreement

 

U.S. EPA established final rules for the phasedown of HFC refrigerants under the U.S. AIM Act designed to accelerate widespread use of climate friendly and energy efficient alternatives such as our low global warming potential Opteon™ solutions

 

On October 27, 2021, the company's Board of Directors approved a fourth quarter dividend of $0.25 per share, consistent with the prior quarter

 

2021 Revised Outlook

 

 

Adjusted EBITDA* between $1,300 million and $1,340 million, vs. prior guidance in the top-end of $1,100 million to $1,250 million range

 

Adjusted EPS* between ~$3.93 and $4.13 vs. prior guidance in the top-end of ~$2.84 to $3.56 range

 

Free Cash Flow* now expected to be greater than $500 million vs. prior outlook of greater than $450 million.  Capex guidance lowered to ~$325 million from ~$350 million previously, mainly driven by timing of projects  

 

“The Chemours team continues to demonstrate resilience along with a renewed focus on sustainable growth of our key businesses. We have met every challenge head on, continue to prioritize and serve our customers, and uphold our commitments to all stakeholders despite the difficult operating environment,” said Chemours President and CEO Mark Newman. “Our strong top line, bottom line and cash results in the quarter demonstrate the strength of this business and the progress we are making towards better quality of earnings and higher shareholder returns. I am confident that we have the right business strategies, an inspired group of leaders and empowered employees to consistently deliver across cycles and over time.”  

 

Third quarter 2021 Net Sales were $1.7 billion, 36% higher than the prior-year quarter. 25% volume growth was the primary driver of the better year-over-year sales performance with positive contributions from every segment. 11% higher pricing and 1% favorable currency translation more than offset a 1% portfolio impact stemming from the exit of our Aniline business in the fourth quarter 2020. The 2% sequential sales improvement was driven primarily by strengthening pricing trends across the portfolio. Volume declined 2% quarter-over-quarter as strong market demand in most product categories was offset by certain customer production constraints, raw material availability, and typical seasonal factors across different parts of the portfolio.  

 

Third quarter Net Income was $214 million, or $1.27 of EPS. Adjusted Net Income was $214 million. Adjusted EPS was $1.27, up $0.80 vs. the prior-year quarter. Adjusted EBITDA for the third quarter 2021 was $372 million in comparison to $210 million in the prior-year third quarter, a result of higher volume, pricing and a favorable currency impact, partially offset by incremental cost headwinds associated with higher plant fixed costs to increase production to meet higher demand, raw material inflation, and higher performance-related compensation expense.


* For information on our non-GAAP measures, please refer to the attached “Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures (Unaudited)”


EXHIBIT 99.1

 

 

Titanium Technologies

Leading the industry in customer-centered service and reliability
Titanium Technologies (TT) segment Net Sales in the third quarter were $908 million in comparison to $612 million in the prior-year quarter. Volume increased 33% vs. the prior-year quarter, a result of solid demand in all regions and end-markets with strength across all selling channels. Sequentially, volumes were flat vs. the second quarter enabled by solid operating performance that enabled us to fully support the needs of our contracted customers. Segment price increased 14% year-over-year and 6% sequentially from the second quarter driven by gains in all selling channels supported by strong market conditions and contractual price increases. Currency was a 1% year-over-year benefit in the quarter. Adjusted EBITDA increased by 73% to $223 million, in comparison to $129 million in the prior-year third quarter. Adjusted EBITDA margins of 25% improved 400bps year-over-year driven by the volume and price recovery which offset higher year-over-year costs stemming from increased plant fixed costs to support demand growth, higher ore and energy costs, and incremental expense associated with supply chain disruptions. Chemours’ TVS strategy continues to deliver value for our stakeholders by providing supply certainty to our contracted customers, visibility and flexibility to our Flex and Distribution customers, and stability to our operations.

 

Thermal & Specialized Solutions

Supporting customers through the transition to low GWP Opteon™ solutions

Thermal & Specialized Solutions (TSS) segment Net Sales in the third quarter were $318 million, a 9% increase vs. the prior-year quarter. In the quarter Opteon™ adoption continued across all markets, but end-market demand in automotive OEM was impacted by continued semiconductor supply chain constraints. Segment volume improved 1% year-over-year driven by growth and strong demand in refrigerants across most regions, offset by headwinds from constrained automotive demand. Segment price increased 7% year-over-year and 6% sequentially as actions were implemented to offset inflationary headwinds. Currency was a 1% year-over-year benefit in the period. Segment Adjusted EBITDA of $105 million was flat vs. the prior-year quarter as higher sales were offset by unfavorable mix, raw material inflation, and increased logistics expense. As a result, Adjusted EBITDA margins of 33% declined 300bps year-over-year from 36% in the prior-year period. As new regulations from the U.S. AIM act come into effect in January 2022, TSS is well positioned to help our customers transition from HFC refrigerants to low GWP Opteon™ solutions.

 

Advanced Performance Materials

From turnaround to secular growth

Advanced Performance Materials (APM) segment Net Sales in the third quarter were $356 million vs. $240 million in the prior-year period. Strong year-over-year sales growth was driven by demand recovery across nearly all end-markets and regions. Market demand exceeded our ability to supply driven by strength in semiconductor and electronics end-markets. A solid operating performance allowed us to support better-than-anticipated customer demand despite raw material availability issues. Volume and price favorably contributed 38% and 8% respectively to the strong year-over-year sales performance with an additional 2% contribution from currency. Sequentially price was flat as product mix offset positive contributions from customer and product-specific pricing actions which helped to offset incremental cost headwinds. Segment Adjusted EBITDA of $71 million increased $64 million vs. the prior-year quarter and Adjusted EBITDA margins of 20% improved 1,700bps year-over-year, consistent with our segment goal for the full year.

 

Chemical Solutions

Staying focused on growth through separation

Chemical Solutions (CS) segment Net Sales in the third quarter were $98 million, 11% higher vs. the prior-year quarter despite an 18% headwind due to portfolio changes. The net year-over-year sales increase was driven by 15% higher price and a 14% volume increase led by strong Mining Solutions and Glycolic Acid performance. Average prices increased mainly due to higher contractual raw material pass-through in the Mining Solutions business and product mix in our Performance Chemicals and Intermediates business. Adjusted EBITDA was $15 million, up 25% from the prior-year period. Adjusted EBITDA margins of 15% increased 100 bps vs. the prior-year as the benefits from improved volumes and pricing offset higher costs predominantly from higher raw material costs.  

 

The previously announced sale of our Mining Solutions business for $520 million remains on track to close in the fourth quarter of 2021, subject to regulatory approvals and other customary closing conditions.


* For information on our non-GAAP measures, please refer to the attached “Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures (Unaudited)”


EXHIBIT 99.1

 

 

Corporate and Other
Corporate and Other in the third quarter 2021 represented a $42 million offset to Adjusted EBITDA vs. $43 million in the prior-year quarter and $63 million in the previous quarter. The sequential decline was primarily driven by a decrease in legal costs related to legacy matters.

 

Liquidity
As of September 30, 2021, consolidated gross debt was $3.9 billion. Debt, net of $1.0 billion cash, was $2.9 billion, resulting in a net leverage ratio of approximately 2.3 times on a trailing twelve-month Adjusted EBITDA basis. In October 2021 we entered into an amendment to the credit agreement to, among other things, increase the aggregate commitment under our Revolving Credit Facility to $900 million and extend the maturity date to October 2026. Subsequent to this event total liquidity was $1.8 billion, comprised of $1.0 billion of cash and $0.8 billion of revolving credit facility capacity, net of outstanding letters of credit. In addition, we issued $650 million aggregate principal 4.625% senior unsecured notes due November 2029 to redeem $750 million of our 7.000% senior unsecured notes due May 2025.

 

Cash provided by operating activities for the third quarter of 2021 was $311 million, up $12 million from $299 million in the prior-year quarter. Capital expenditures for the third quarter 2021 were $67 million, vs. $47 million in last year’s third quarter. Free Cash Flow for the third quarter of 2021 was $244 million vs. $252 million in the prior-year quarter. During the quarter we repaid $108 million of debt principal, funded $100 million escrow payment as per the MOU agreement, and repurchased $67 million of common stock during the quarter with an additional $22 million spent in the month of October.  

 

Outlook

Newman commented, “On the back of the strong performance in Q3, we are raising our expectations for the full year. Our new guidance reflects our expectation for strong Q4 demand, inclusive of typical seasonal patterns and against a backdrop of ongoing logistics and supply chain challenges. We expect 2021 Adjusted EBITDA within a range of $1,300 million to $1,340 million and Free Cash Flow of greater than $500 million. Longer term, our earnings and cash flow will reflect the ever-increasing value we are delivering for our customers through our unique product offering and industry leading reliability.”  

 

Conference Call
As previously announced, Chemours will hold a conference call and webcast on November 5, 2021, 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) is a global leader in Titanium Technologies, Thermal & Specialized Solutions, Advanced Performance Materials, and Chemical Solutions providing its customers with solutions in a wide range of industries with market-defining products, application expertise and chemistry-based innovations. We deliver customized solutions with a wide range of industrial and specialty chemicals products for markets, including coatings, plastics, refrigeration, and air conditioning, transportation, semiconductor and consumer electronics, general industrial, mining and oil and gas. Our flagship products include prominent brands such as Ti-Pure™, Opteon™, Freon™, Teflon™, Viton™, Nafion™, and Krytox™. In 2019, Chemours was named to Newsweek’s list of America’s Most Responsible Companies. The company has approximately 6,500 employees and 30 manufacturing sites serving approximately 3,300 customers in approximately 120 countries. Chemours is headquartered in Wilmington, Delaware and is listed on the NYSE under the symbol CC.

 

For more information, we invite you to visit chemours.com or follow us on Twitter @Chemours or LinkedIn


 


EXHIBIT 99.1

 

 

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 (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Effective Tax Rate, Return on Invested Capital 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 (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Effective Tax Rate, Return on Invested Capital and Net Leverage Ratio 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 GAAP Financial Measures to Non-GAAP Financial Measures" and materials posted to the company's website at investors.chemours.com.


 


EXHIBIT 99.1

 

 

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, 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, changes in environmental regulations in the U.S. or other jurisdictions that affect demand for or adoption of our products, anticipated future operating and financial performance for our segments individually and our company as a whole, business plans, prospects, targets, goals and commitments, capital investments and projects and target capital expenditures, plans for dividends or share repurchases, sufficiency or longevity of intellectual property protection, cost reductions or savings targets, plans to increase profitability and growth, our ability to make acquisitions, integrate acquired businesses or assets into our operations, and achieve anticipated synergies or cost savings, all of which 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 that may not be accurate or realized. These statements are not guarantees of future performance. Forward-looking statements also involve risks and uncertainties that are beyond Chemours' control. In addition, the current COVID-19 pandemic has significantly impacted the national and global economy and commodity and financial markets, which has had and we expect will continue to have a negative impact on our financial results. The full extent and impact of the pandemic is unknown and to date has included extreme volatility in financial and commodity markets, a significant slowdown in economic activity, and increased predictions of a global recession. The public and private sector response has led to significant restrictions on travel, temporary business closures, quarantines, stock market volatility, and a general reduction in consumer and commercial activity globally. Matters outside our control have affected our business and operations and may or may continue to limit travel of employees to our business units domestically and internationally, adversely affect the health and welfare of our personnel, significantly reduce the demand for our products, hinder our ability to provide goods and services to customers, cause disruptions in our supply chains, adversely affect our business partners or cause other unpredictable events. 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 the risks, uncertainties and other factors discussed in our filings with the U.S. Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and in our Annual Report on Form 10-K for the year ended December 31, 2020. Chemours assumes no obligation to revise or update any forward-looking statement for any reason, except as required by law.

 

CONTACT:

 

INVESTORS 
Jonathan Lock 
VP, Corporate Development and Investor Relations 
+1.302.773.2263 
investor@chemours.com 

 

NEWS MEDIA 
Cassie Olszewski
Media Relations and Financial Communications Manager
+1.302.219.7140
media@chemours.com

 

 

 

 


EXHIBIT 99.1

 

 

 

The Chemours Company

Interim Consolidated Statements of Operations (Unaudited)

(Dollars in millions, except per share amounts)

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net sales

 

$

1,680

 

 

$

1,233

 

 

$

4,770

 

 

$

3,631

 

Cost of goods sold

 

 

1,253

 

 

 

976

 

 

 

3,782

 

 

 

2,877

 

Gross profit

 

 

427

 

 

 

257

 

 

 

988

 

 

 

754

 

Selling, general, and administrative expense

 

 

124

 

 

 

112

 

 

 

433

 

 

 

347

 

Research and development expense

 

 

27

 

 

 

22

 

 

 

78

 

 

 

67

 

Restructuring, asset-related, and other charges

 

 

3

 

 

 

9

 

 

 

4

 

 

 

37

 

Total other operating expenses

 

 

154

 

 

 

143

 

 

 

515

 

 

 

451

 

Equity in earnings of affiliates

 

 

12

 

 

 

4

 

 

 

32

 

 

 

19

 

Interest expense, net

 

 

(45

)

 

 

(53

)

 

 

(142

)

 

 

(160

)

Loss on extinguishment of debt

 

 

(20

)

 

 

 

 

 

(20

)

 

 

 

Other income (expense), net

 

 

11

 

 

 

(5

)

 

 

31

 

 

 

(6

)

Income before income taxes

 

 

231

 

 

 

60

 

 

 

374

 

 

 

156

 

Provision for (benefit from) income taxes

 

 

17

 

 

 

(16

)

 

 

(1

)

 

 

(44

)

Net income

 

 

214

 

 

 

76

 

 

 

375

 

 

 

200

 

Net income attributable to Chemours

 

$

214

 

 

$

76

 

 

$

375

 

 

$

200

 

Per share data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share of common stock

 

$

1.30

 

 

$

0.46

 

 

$

2.26

 

 

$

1.22

 

Diluted earnings per share of common stock

 

 

1.27

 

 

 

0.46

 

 

 

2.21

 

 

 

1.21

 

 


EXHIBIT 99.1

 

 

 

The Chemours Company

Interim Consolidated Balance Sheets (Unaudited)

(Dollars in millions, except per share amounts)

 

 

 

September 30, 2021

 

 

December 31, 2020

 

Assets

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,031

 

 

$

1,105

 

Accounts and notes receivable, net

 

 

831

 

 

 

511

 

Inventories

 

 

1,016

 

 

 

939

 

Prepaid expenses and other

 

 

81

 

 

 

78

 

Assets held for sale

 

 

412

 

 

 

 

Total current assets

 

 

3,371

 

 

 

2,633

 

Property, plant, and equipment

 

 

9,207

 

 

 

9,582

 

Less: Accumulated depreciation

 

 

(6,080

)

 

 

(6,108

)

Property, plant, and equipment, net

 

 

3,127

 

 

 

3,474

 

Operating lease right-of-use assets

 

 

213

 

 

 

236

 

Goodwill, net

 

 

102

 

 

 

153

 

Other intangible assets, net

 

 

8

 

 

 

14

 

Investments in affiliates

 

 

190

 

 

 

167

 

Restricted cash and restricted cash equivalents

 

 

100

 

 

 

 

Other assets

 

 

419

 

 

 

405

 

Total assets

 

$

7,530

 

 

$

7,082

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,085

 

 

$

844

 

Compensation and other employee-related cost

 

 

139

 

 

 

107

 

Short-term and current maturities of long-term debt

 

 

25

 

 

 

21

 

Current environmental remediation

 

 

161

 

 

 

95

 

Other accrued liabilities

 

 

361

 

 

 

375

 

Liabilities held for sale

 

 

8

 

 

 

 

Total current liabilities

 

 

1,779

 

 

 

1,442

 

Long-term debt, net

 

 

3,829

 

 

 

4,005

 

Operating lease liabilities

 

 

176

 

 

 

194

 

Long-term environmental remediation

 

 

395

 

 

 

295

 

Deferred income taxes

 

 

57

 

 

 

36

 

Other liabilities

 

 

295

 

 

 

295

 

Total liabilities

 

 

6,531

 

 

 

6,267

 

Commitments and contingent liabilities

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Common stock (par value $0.01 per share; 810,000,000 shares authorized;

191,437,408 shares issued and 163,646,920 shares outstanding at September 30, 2021;

190,239,883 shares issued and 164,920,648 shares outstanding at December 31, 2020)

 

 

2

 

 

 

2

 

Treasury stock, at cost (27,790,488 shares at September 30, 2021; 25,319,235 and December 31, 2020)

 

 

(1,152

)

 

 

(1,072

)

Additional paid-in capital

 

 

926

 

 

 

890

 

Retained earnings

 

 

1,554

 

 

 

1,303

 

Accumulated other comprehensive loss

 

 

(332

)

 

 

(310

)

Total Chemours stockholders’ equity

 

 

998

 

 

 

813

 

Non-controlling interests

 

 

1

 

 

 

2

 

Total equity

 

 

999

 

 

 

815

 

Total liabilities and equity

 

$

7,530

 

 

$

7,082

 

 


EXHIBIT 99.1

 

 

 

The Chemours Company

Interim Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions)

 

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

Cash flows from operating activities

 

 

 

 

 

 

 

 

Net income

 

$

375

 

 

$

200

 

Adjustments to reconcile net income to cash provided by (used for) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

242

 

 

 

240

 

Gain on sales of assets and businesses

 

 

(2

)

 

 

 

Equity in earnings of affiliates, net

 

 

(31

)

 

 

(16

)

Loss on extinguishment of debt

 

 

20

 

 

 

 

Amortization of debt issuance costs and issue discounts

 

 

6

 

 

 

7

 

Deferred tax benefit

 

 

(55

)

 

 

(105

)

Asset-related charges

 

 

 

 

 

16

 

Stock-based compensation expense

 

 

24

 

 

 

12

 

Net periodic pension cost

 

 

5

 

 

 

9

 

Defined benefit plan contributions

 

 

(12

)

 

 

(17

)

Other operating charges and credits, net

 

 

21

 

 

 

(11

)

Decrease (increase) in operating assets:

 

 

 

 

 

 

 

 

Accounts and notes receivable, net

 

 

(343

)

 

 

97

 

Inventories and other operating assets

 

 

(78

)

 

 

111

 

(Decrease) increase in operating liabilities:

 

 

 

 

 

 

 

 

Accounts payable and other operating liabilities

 

 

434

 

 

 

(89

)

Cash provided by operating activities

 

 

606

 

 

 

454

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment

 

 

(194

)

 

 

(214

)

Proceeds from life insurance policies

 

 

1

 

 

 

 

Foreign exchange contract settlements, net

 

 

(9

)

 

 

14

 

Cash used for investing activities

 

 

(202

)

 

 

(200

)

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from issuance of debt

 

 

650

 

 

 

 

Proceeds from accounts receivable securitization facility

 

 

 

 

 

12

 

Proceeds from revolving loan

 

 

 

 

 

300

 

Repayments on revolving loan

 

 

 

 

 

(300

)

Debt repayments

 

 

(784

)

 

 

(140

)

Payments related to extinguishment of debt

 

 

(18

)

 

 

 

Payments on finance leases

 

 

(8

)

 

 

(4

)

Payments of debt issuance cost

 

 

(8

)

 

 

 

Deferred acquisition-related consideration

 

 

 

 

 

(10

)

Purchases of treasury stock, at cost

 

 

(80

)

 

 

 

Proceeds from exercised stock options, net

 

 

15

 

 

 

9

 

Payments related to tax withholdings on vested stock awards

 

 

(2

)

 

 

(2

)

Payments of dividends to the Company's common shareholders

 

 

(123

)

 

 

(123

)

Distributions to non-controlling interest shareholders

 

 

(1

)

 

 

(4

)

Cash used for financing activities

 

 

(359

)

 

 

(262

)

Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

(19

)

 

 

21

 

Increase in cash, cash equivalents, restricted cash and restricted cash equivalents

 

 

26

 

 

 

13

 

Cash, cash equivalents, restricted cash, and restricted cash equivalents at January 1,

 

 

1,105

 

 

 

943

 

Cash, cash equivalents, restricted cash and restricted cash equivalents at September 30,

 

$

1,131

 

 

$

956

 

 

 

 

 

 

 

 

 

 

Supplemental cash flows information

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

Purchases of property, plant, and equipment included in accounts payable

 

$

44

 

 

$

25

 

Non-cash financing arrangements

 

 

 

 

 

15

 

Treasury Stock repurchased, not settled

 

 

2

 

 

 

 


 


EXHIBIT 99.1

 

 

 

The Chemours Company

Segment Financial and Operating Data (Unaudited)

(Dollars in millions)

 

Segment Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

Sequential

 

 

Three Months Ended September 30,

 

 

Increase /

 

 

June 30,

 

 

Increase /

 

 

2021

 

 

2020

 

 

(Decrease)

 

 

2021

 

 

(Decrease)

 

Titanium Technologies

$

 

908

 

 

$

 

612

 

 

$

 

296

 

 

$

 

859

 

 

$

 

49

 

Thermal & Specialized Solutions

 

 

318

 

 

 

 

293

 

 

 

 

25

 

 

 

 

340

 

 

 

 

(22

)

Advanced Performance Materials

 

 

356

 

 

 

 

240

 

 

 

 

116

 

 

 

 

362

 

 

 

 

(6

)

Chemical Solutions

 

 

98

 

 

 

 

88

 

 

 

 

10

 

 

 

 

94

 

 

 

 

4

 

Total Net Sales

$

 

1,680

 

 

$

 

1,233

 

 

$

 

447

 

 

$

 

1,655

 

 

$

 

25

 

 

Segment Adjusted EBITDA

 

 

 

 

 

 

 

 

 

 

Three Months

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

 

 

Sequential

 

 

Three Months Ended September 30,

 

 

Increase /

 

 

June 30,

 

 

Increase /

 

 

2021

 

 

2020

 

 

(Decrease)

 

 

2021

 

 

(Decrease)

 

Titanium Technologies

$

 

223

 

 

$

 

129

 

 

$

 

94

 

 

$

 

219

 

 

$

 

4

 

Thermal & Specialized Solutions

 

 

105

 

 

 

 

105

 

 

 

 

 

 

 

 

117

 

 

 

 

(12

)

Advanced Performance Materials

 

 

71

 

 

 

 

7

 

 

 

 

64

 

 

 

 

74

 

 

 

 

(3

)

Chemical Solutions

 

 

15

 

 

 

 

12

 

 

 

 

3

 

 

 

 

19

 

 

 

 

(4

)

Corporate and Other

 

 

(42

)

 

 

 

(43

)

 

 

 

1

 

 

 

 

(63

)

 

 

 

21

 

Total Adjusted EBITDA

$

 

372

 

 

$

 

210

 

 

$

 

162

 

 

$

 

366

 

 

$

 

6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA Margin

22%

 

 

17%

 

 

 

 

 

22%

 

 

 

 

 

Quarterly Change in Net Sales from the three months ended September 30, 2020

 

 

September 30, 2021

Percentage Change vs.

 

Percentage Change Due To

 

 

Net Sales

 

 

September 30, 2020

 

Price

 

Volume

 

Currency

 

Portfolio

 

Total Company

$

 

1,680

 

 

 

36

%

 

11

%

 

25

%

 

1

%

 

(1

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

$

 

908

 

 

 

48

%

 

14

%

 

33

%

 

1

%

 

%

Thermal & Specialized Solutions

 

 

318

 

 

 

9

%

 

7

%

 

1

%

 

1

%

 

%

Advanced Performance Materials

 

 

356

 

 

 

48

%

 

8

%

 

38

%

 

2

%

 

%

Chemical Solutions

 

 

98

 

 

 

11

%

 

15

%

 

14

%

 

%

 

(18

)%

 

Quarterly Change in Net Sales from the three months ended June 30, 2021

 

 

September 30, 2021

Percentage Change vs.

 

Percentage Change Due To

 

 

Net Sales

 

 

June 30, 2021

 

Price

 

Volume

 

Currency

 

Portfolio

 

Total Company

$

 

1,680

 

 

 

2

%

 

4

%

 

(2

)%

 

%

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Titanium Technologies

$

 

908

 

 

 

6

%

 

6

%

 

%

 

%

 

%

Thermal & Specialized Solutions

 

 

318

 

 

 

(6

)%

 

6

%

 

(12

)%

 

%

 

%

Advanced Performance Materials

 

 

356

 

 

 

(2

)%

 

%

 

(2

)%

 

%

 

%

Chemical Solutions

 

 

98

 

 

 

4

%

 

1

%

 

3

%

 

%

 

%

 


EXHIBIT 99.1

 

 

 

The Chemours Company

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)

(Dollars in millions)

 

GAAP Net Income Attributable to Chemours to Adjusted Net Income and Adjusted EBITDA 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 (income) 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. 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.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

June 30,

 

 

September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2021

 

 

2020

 

Net income attributable to Chemours

 

$

 

214

 

 

$

 

76

 

 

$

 

66

 

 

$

 

375

 

 

$

 

200

 

Non-operating pension and other post-retirement employee benefit income

 

 

 

(2

)

 

 

 

(1

)

 

 

 

(2

)

 

 

 

(7

)

 

 

 

(2

)

Exchange (gains) losses, net

 

 

 

(3

)

 

 

 

9

 

 

 

 

(3

)

 

 

 

2

 

 

 

 

28

 

Restructuring, asset-related, and other charges (1)

 

 

 

3

 

 

 

 

9

 

 

 

 

5

 

 

 

 

2

 

 

 

 

37

 

Loss on extinguishment of debt

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

Gain on sales of assets and businesses

 

 

 

(1

)

 

 

 

 

 

 

 

(2

)

 

 

 

(2

)

 

 

 

 

Natural disasters and catastrophic events (2)

 

 

 

 

 

 

 

 

 

 

 

3

 

 

 

 

19

 

 

 

 

 

Transaction costs (3)

 

 

 

2

 

 

 

 

 

 

 

 

 

 

 

 

7

 

 

 

 

2

 

Qualified spend recovery (4)

 

 

 

(12

)

 

 

 

 

 

 

 

 

 

 

 

(12

)

 

 

 

 

Legal and environmental charges (5,6)

 

 

 

11

 

 

 

 

1

 

 

 

 

195

 

 

 

 

219

 

 

 

 

12

 

Adjustments made to income taxes (7)

 

 

 

(14

)

 

 

 

(10

)

 

 

 

(10

)

 

 

 

(23

)

 

 

 

(32

)

Benefit from income taxes relating to reconciling items (8)

 

 

 

(4

)

 

 

 

(6

)

 

 

 

(47

)

 

 

 

(62

)

 

 

 

(19

)

Adjusted Net Income (9)

 

 

 

214

 

 

 

 

78

 

 

 

 

205

 

 

 

 

538

 

 

 

 

226

 

Interest expense, net

 

 

 

45

 

 

 

 

53

 

 

 

 

47

 

 

 

 

142

 

 

 

 

160

 

Depreciation and amortization

 

 

 

78

 

 

 

 

79

 

 

 

 

79