The Chemours Company Reports Solid Fourth Quarter and Full Year 2021 Results, Provides Strong Full Year 2022 Outlook
The Chemours Company (NYSE: CC) reported strong financial results for Q4 and FY 2021, with net sales of $6.3 billion and net income of $608 million, up 28% and 19% year-over-year, respectively. Adjusted EBITDA increased by 49% to $1.3 billion. The company announced a positive outlook for 2022, expecting Adjusted EBITDA between $1.3 billion and $1.425 billion, and projected Free Cash Flow exceeding $500 million. Chemours also repurchased $173 million in stock and reduced debt by $204 million throughout the year, highlighting its strong financial management and commitment to shareholder returns.
- Net Sales for 2021 increased by 28% to $6.3 billion.
- Net Income for 2021 reached $608 million, resulting in EPS of $3.60.
- Adjusted EBITDA rose 49% to $1.3 billion for FY 2021.
- Free Cash Flow for the year was $543 million.
- Stock repurchase of $173 million, indicating strong capital management.
- Projected Adjusted EPS for 2022 is between $4.07 and $4.70.
- Q4 Net Sales were $1.6 billion, showing slower growth of 18% year-over-year.
- Q4 Adjusted Net Income was $135 million, indicating potential pressure on profit margins.
Broad strength despite logistics and pandemic related headwinds – full year 2022 outlook targets continued earnings growth and strong free cash flow generation
Full Year 2021 Results
-
Net Sales of , up$6.3 billion 28% year-over-year -
Net Income of
with EPS1 of$608 million , up$3.60 year-over-year$2.28 -
Adjusted Net Income* of
with Adjusted EPS* of$674 million , up$4.00 year-over-year$2.02 -
Adjusted EBITDA* of
, up$1,313 million 49% year-over-year -
Free Cash Flow* of
$543 million -
Repurchased
of stock, including$173 million in Q4, and reduced debt by$93 million $204 million
Fourth Quarter 2021 Results & Highlights
-
Net Sales of , up$1.6 billion 18% year-over-year -
Net Income of
with EPS of$233 million , up$1.40 year-over-year$1.29 -
Adjusted Net Income* of
with Adjusted EPS* of$135 million , up$0.81 year-over-year$0.20 -
Adjusted EBITDA* of
, up$307 million 25% year-over-year -
On
February 9, 2022 , the company's Board of Directors approved a first quarter dividend of per share$0.25 - Launched ChemFEST school partnership to expand commitment to early STEM education in our communities
-
Completed the sale of Mining Solutions for
2$521 million
Full Year 2022 Outlook
-
Adjusted EBITDA* between
and$1.3 billion , up$1.42 5 billion8% from FY2021 at the midpoint, after considering the divestiture of Mining Solutions in 20212 -
Adjusted EPS* between
~ and$4.07 $4.70 -
Free Cash Flow* of greater than
, including CAPEX of$500 million ~ $400 million - Anticipate completing the remainder of our share repurchase authorization in mid-20223
"I’m extremely proud of the results our teams around the world delivered, despite the challenges and uncertainties of 2021. Consistently, in the face of demanding circumstances, we continue to meet our commitments to customers, supply chain partners, and the communities in which we operate while delivering on our financial goals,” said Chemours President and CEO
2021
2021 Net Income of
Fourth quarter 2021 Net Sales were
Fourth quarter Net Income was
Titanium Technologies (TT)
Creating a winning customer value proposition behind our world-class Ti-Pure™ operations
Titanium Technologies segment
Titanium Technologies segment
Chemours’ TVS strategy continues to provide customers with a market leading combination of product quality and supply certainty - enabled by our world-class pigment technology.
Thermal & Specialized Solutions (TSS)
Driving innovation in low GWP solutions to support customers’ transition to more sustainable products
Thermal & Specialized Solutions segment
Segment
Customer demand and market adoption of low GWP Opteon™ refrigerants remains strong – with several new strategic partnerships and the launch of Opteon™ 1150 in 2021. TSS remains well positioned to help customers transition from HFC refrigerants.
Advanced Performance Materials (APM)
Creating a clean energy and advanced electronics powerhouse
Advanced Performance Materials delivered record top and bottom line performance in 2021. Full year 2021 Net Sales of
Advanced Performance Materials segment
APM technologies are fundamental to the future of clean energy and advanced electronics – and we continue to invest behind these key growth themes.
Chemical Solutions
Focused on a world-class Glycolic Acid franchise
As previously announced, we completed the sale of our Mining Solutions business to Draslovka in December of 2021.
Full year 2021 Net Sales of
Chemical Solutions segment
The mid-fourth quarter closing of the Mining Solutions transaction impacted our full year and fourth quarter 2021 Adjusted EBITDA, which we estimate to be approximately
Corporate and Other
Corporate and Other was an offset to Adjusted EBITDA of
Corporate and Other was an offset to fourth quarter 2021 adjusted EBITDA of
Liquidity
As of
Cash provided by operating activities was
Free Cash Flow for the year 2021 was
Cash provided by operating activities for the fourth quarter of 2021 was
Outlook
The company expects to deliver 2022 Adjusted EBITDA within a range of
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 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 (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Effective Tax Rate, Return on
Management uses Adjusted Net Income (Loss), Adjusted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Adjusted Effective Tax Rate, Return on
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, 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
* For information on our non-GAAP measures, please refer to the attached "Reconciliation of GAAP Financial Measures to non-GAAP Financial Measures (Unaudited)
Consolidated Statements of Operations (Unaudited)
(Dollars in millions, except per share amounts)
|
|
Year Ended |
|
|||||||||
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|||
Net sales |
|
$ |
6,345 |
|
|
$ |
4,969 |
|
|
$ |
5,526 |
|
Cost of goods sold |
|
|
4,964 |
|
|
|
3,902 |
|
|
|
4,463 |
|
Gross profit |
|
|
1,381 |
|
|
|
1,067 |
|
|
|
1,063 |
|
Selling, general, and administrative expense |
|
|
592 |
|
|
|
527 |
|
|
|
548 |
|
Research and development expense |
|
|
107 |
|
|
|
93 |
|
|
|
80 |
|
Restructuring, asset-related, and other charges |
|
|
6 |
|
|
|
80 |
|
|
|
87 |
|
Total other operating expenses |
|
|
705 |
|
|
|
700 |
|
|
|
715 |
|
Equity in earnings of affiliates |
|
|
43 |
|
|
|
23 |
|
|
|
29 |
|
Interest expense, net |
|
|
(185 |
) |
|
|
(210 |
) |
|
|
(208 |
) |
Loss on extinguishment of debt |
|
|
(21 |
) |
|
|
(22 |
) |
|
|
— |
|
Other income (expense), net |
|
|
163 |
|
|
|
21 |
|
|
|
(293 |
) |
Income (loss) before income taxes |
|
|
676 |
|
|
|
179 |
|
|
|
(124 |
) |
Provision for (benefit from) income taxes |
|
|
68 |
|
|
|
(40 |
) |
|
|
(72 |
) |
Net income (loss) |
|
|
608 |
|
|
|
219 |
|
|
|
(52 |
) |
Net income (loss) attributable to Chemours |
|
$ |
608 |
|
|
$ |
219 |
|
|
$ |
(52 |
) |
Per share data |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share of common stock |
|
$ |
3.69 |
|
|
$ |
1.33 |
|
|
$ |
(0.32 |
) |
Diluted earnings (loss) per share of common stock |
|
|
3.60 |
|
|
|
1.32 |
|
|
|
(0.32 |
) |
Consolidated Balance Sheets (Unaudited)
(Dollars in millions, except per share amounts)
|
|
|
|
|||||
|
|
|
2021 |
|
|
|
2020 |
|
Assets |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,451 |
|
|
$ |
1,105 |
|
Accounts and notes receivable, net |
|
|
720 |
|
|
|
511 |
|
Inventories |
|
|
1,099 |
|
|
|
939 |
|
Prepaid expenses and other |
|
|
75 |
|
|
|
78 |
|
Total current assets |
|
|
3,345 |
|
|
|
2,633 |
|
Property, plant, and equipment |
|
|
9,232 |
|
|
|
9,582 |
|
Less: Accumulated depreciation |
|
|
(6,078 |
) |
|
|
(6,108 |
) |
Property, plant, and equipment, net |
|
|
3,154 |
|
|
|
3,474 |
|
Operating lease right-of-use assets |
|
|
227 |
|
|
|
236 |
|
|
|
|
102 |
|
|
|
153 |
|
Other intangible assets, net |
|
|
6 |
|
|
|
14 |
|
Investments in affiliates |
|
|
169 |
|
|
|
167 |
|
Restricted cash and restricted cash equivalents |
|
|
100 |
|
|
|
— |
|
Other assets |
|
|
447 |
|
|
|
405 |
|
Total assets |
|
$ |
7,550 |
|
|
$ |
7,082 |
|
Liabilities |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
1,162 |
|
|
$ |
844 |
|
Compensation and other employee-related cost |
|
|
173 |
|
|
|
107 |
|
Short-term and current maturities of long-term debt |
|
|
25 |
|
|
|
21 |
|
Current environmental remediation |
|
|
173 |
|
|
|
95 |
|
Other accrued liabilities |
|
|
325 |
|
|
|
375 |
|
Total current liabilities |
|
|
1,858 |
|
|
|
1,442 |
|
Long-term debt, net |
|
|
3,724 |
|
|
|
4,005 |
|
Operating lease liabilities |
|
|
179 |
|
|
|
194 |
|
Long-term environmental remediation |
|
|
389 |
|
|
|
295 |
|
Deferred income taxes |
|
|
49 |
|
|
|
36 |
|
Other liabilities |
|
|
269 |
|
|
|
295 |
|
Total liabilities |
|
|
6,468 |
|
|
|
6,267 |
|
Commitments and contingent liabilities |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Common stock (par value 191,860,159 shares issued and 161,046,732 shares outstanding at
190,239,883 shares issued and 164,920,648 shares outstanding at |
|
|
2 |
|
|
|
2 |
|
|
|
|
(1,247 |
) |
|
|
(1,072 |
) |
Additional paid-in capital |
|
|
944 |
|
|
|
890 |
|
Retained earnings |
|
|
1,746 |
|
|
|
1,303 |
|
Accumulated other comprehensive loss |
|
|
(364 |
) |
|
|
(310 |
) |
Total Chemours stockholders’ equity |
|
|
1,081 |
|
|
|
813 |
|
Non-controlling interests |
|
|
1 |
|
|
|
2 |
|
Total equity |
|
|
1,082 |
|
|
|
815 |
|
Total liabilities and equity |
|
$ |
7,550 |
|
|
$ |
7,082 |
|
Consolidated Statements of Cash Flows (Unaudited)
(Dollars in millions)
|
|
Year Ended |
|
|||||||||
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
|||
Cash flows from operating activities |
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) |
|
$ |
608 |
|
|
$ |
219 |
|
|
$ |
(52 |
) |
Adjustments to reconcile net income (loss) to cash provided by (used for) operating activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
317 |
|
|
|
320 |
|
|
|
311 |
|
Gain on sales of assets and businesses |
|
|
(115 |
) |
|
|
(8 |
) |
|
|
(10 |
) |
Equity in earnings of affiliates, net |
|
|
(11 |
) |
|
|
— |
|
|
|
(3 |
) |
Loss on extinguishment of debt |
|
|
21 |
|
|
|
22 |
|
|
|
— |
|
Amortization of debt issuance costs and issue discounts |
|
|
9 |
|
|
|
9 |
|
|
|
9 |
|
Deferred tax benefit |
|
|
(77 |
) |
|
|
(120 |
) |
|
|
(165 |
) |
Asset-related charges |
|
|
— |
|
|
|
22 |
|
|
|
43 |
|
Stock-based compensation expense |
|
|
34 |
|
|
|
16 |
|
|
|
19 |
|
Net periodic pension cost |
|
|
6 |
|
|
|
14 |
|
|
|
381 |
|
Defined benefit plan contributions |
|
|
(17 |
) |
|
|
(21 |
) |
|
|
(19 |
) |
Other operating charges and credits, net |
|
|
18 |
|
|
|
(22 |
) |
|
|
(2 |
) |
Decrease (increase) in operating assets: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts and notes receivable |
|
|
(225 |
) |
|
|
175 |
|
|
|
191 |
|
Inventories and other operating assets |
|
|
(202 |
) |
|
|
126 |
|
|
|
116 |
|
(Decrease) increase in operating liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and other operating liabilities |
|
|
454 |
|
|
|
55 |
|
|
|
(169 |
) |
Cash provided by operating activities |
|
|
820 |
|
|
|
807 |
|
|
|
650 |
|
Cash flows from investing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment |
|
|
(277 |
) |
|
|
(267 |
) |
|
|
(481 |
) |
Acquisition of business, net |
|
|
— |
|
|
|
— |
|
|
|
(10 |
) |
Proceeds from sales of assets and businesses, net of cash divested |
|
|
508 |
|
|
|
5 |
|
|
|
9 |
|
Proceeds from life insurance policies |
|
|
1 |
|
|
|
1 |
|
|
|
1 |
|
Foreign exchange contract settlements, net |
|
|
(12 |
) |
|
|
27 |
|
|
|
(2 |
) |
Cash provided by (used for) investing activities |
|
|
220 |
|
|
|
(234 |
) |
|
|
(483 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of debt |
|
|
650 |
|
|
|
800 |
|
|
|
— |
|
Proceeds from accounts receivable securitization facility |
|
|
— |
|
|
|
12 |
|
|
|
128 |
|
Repayments on accounts receivable securitization facility |
|
|
— |
|
|
|
(122 |
) |
|
|
(18 |
) |
Proceeds from revolving loan |
|
|
— |
|
|
|
300 |
|
|
|
150 |
|
Repayments on revolving loan |
|
|
— |
|
|
|
(300 |
) |
|
|
(150 |
) |
Debt repayments |
|
|
(854 |
) |
|
|
(943 |
) |
|
|
(19 |
) |
Payments related to extinguishment of debt |
|
|
(18 |
) |
|
|
(16 |
) |
|
|
— |
|
Payments of debt issuance costs |
|
|
(11 |
) |
|
|
(10 |
) |
|
|
— |
|
Payments on finance leases |
|
|
(10 |
) |
|
|
(6 |
) |
|
|
(3 |
) |
Deferred acquisition-related consideration |
|
|
— |
|
|
|
(10 |
) |
|
|
— |
|
Purchases of treasury stock, at cost |
|
|
(173 |
) |
|
|
— |
|
|
|
(322 |
) |
Proceeds from exercised stock options, net |
|
|
23 |
|
|
|
16 |
|
|
|
9 |
|
Payments related to tax withholdings on vested stock awards |
|
|
(2 |
) |
|
|
(2 |
) |
|
|
(30 |
) |
Payments of dividends to the Company's common shareholders |
|
|
(164 |
) |
|
|
(164 |
) |
|
|
(164 |
) |
Distributions to non-controlling interest shareholders |
|
|
(1 |
) |
|
|
(4 |
) |
|
|
— |
|
Cash used for financing activities |
|
|
(560 |
) |
|
|
(449 |
) |
|
|
(419 |
) |
Effect of exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
(34 |
) |
|
|
38 |
|
|
|
(6 |
) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents |
|
|
446 |
|
|
|
162 |
|
|
|
(258 |
) |
Cash, cash equivalents, restricted cash, and restricted cash equivalents at |
|
|
1,105 |
|
|
|
943 |
|
|
|
1,201 |
|
Cash, cash equivalents, restricted cash, and restricted cash equivalents at |
|
$ |
1,551 |
|
|
$ |
1,105 |
|
|
$ |
943 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flows information |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid during the year for: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest, net of amounts capitalized |
|
$ |
180 |
|
|
$ |
208 |
|
|
$ |
204 |
|
Income taxes, net of refunds |
|
|
149 |
|
|
|
78 |
|
|
|
85 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property, plant, and equipment included in accounts payable |
|
$ |
89 |
|
|
$ |
31 |
|
|
$ |
85 |
|
Obligations incurred under build-to-suit lease arrangement |
|
|
— |
|
|
|
— |
|
|
|
40 |
|
Non-cash financing arrangements |
|
|
— |
|
|
|
16 |
|
|
|
11 |
|
|
|
|
4 |
|
|
|
— |
|
|
|
— |
|
Deferred payments related to acquisition of business |
|
|
— |
|
|
|
— |
|
|
|
15 |
|
Segment Financial and Operating Data (Unaudited)
(Dollars in millions)
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
Ended |
|
|
Sequential |
|
|||||||||||||
|
Three Months Ended |
|
|
Increase / |
|
|
|
|
|
Increase / |
|
|||||||||||||
|
2021 |
|
|
2020 |
|
|
(Decrease) |
|
|
2021 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
865 |
|
|
$ |
|
691 |
|
|
$ |
|
174 |
|
|
$ |
|
908 |
|
|
$ |
|
(43 |
) |
Thermal & Specialized Solutions |
|
|
295 |
|
|
|
|
272 |
|
|
|
|
23 |
|
|
|
|
318 |
|
|
|
|
(23 |
) |
Advanced Performance Materials |
|
|
346 |
|
|
|
|
279 |
|
|
|
|
67 |
|
|
|
|
356 |
|
|
|
|
(10 |
) |
Chemical Solutions |
|
|
69 |
|
|
|
|
95 |
|
|
|
|
(26 |
) |
|
|
|
98 |
|
|
|
|
(29 |
) |
Total |
$ |
|
1,575 |
|
|
$ |
|
1,337 |
|
|
$ |
|
238 |
|
|
$ |
|
1,680 |
|
|
$ |
|
(105 |
) |
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ended |
|
|
Sequential |
|
||||
|
Three Months Ended |
|
|
Increase / |
|
|
|
|
|
Increase / |
|
|||||||||||||
|
2021 |
|
|
2020 |
|
|
(Decrease) |
|
|
2021 |
|
|
(Decrease) |
|
||||||||||
Titanium Technologies |
$ |
|
198 |
|
|
$ |
|
149 |
|
|
$ |
|
49 |
|
|
$ |
|
223 |
|
|
$ |
|
(25 |
) |
Thermal & Specialized Solutions |
|
|
97 |
|
|
|
|
105 |
|
|
|
|
(8 |
) |
|
|
|
105 |
|
|
|
|
(8 |
) |
Advanced Performance Materials |
|
|
65 |
|
|
|
|
25 |
|
|
|
|
40 |
|
|
|
|
71 |
|
|
|
|
(6 |
) |
Chemical Solutions |
|
|
8 |
|
|
|
|
28 |
|
|
|
|
(20 |
) |
|
|
|
15 |
|
|
|
|
(7 |
) |
Corporate and Other |
|
|
(61 |
) |
|
|
|
(61 |
) |
|
|
|
— |
|
|
|
|
(42 |
) |
|
|
|
(19 |
) |
Total Adjusted EBITDA |
$ |
|
307 |
|
|
$ |
|
246 |
|
|
$ |
|
61 |
|
|
$ |
|
372 |
|
|
$ |
|
(65 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Change in |
|
|||||||||||||||||||
|
|
Percentage Change vs. |
|
Percentage Change Due To |
|
|||||||||||||||
|
|
|
|
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,575 |
|
|
|
18 |
% |
|
16 |
% |
|
5 |
% |
|
— |
% |
|
(3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium Technologies |
$ |
|
865 |
|
|
|
25 |
% |
|
19 |
% |
|
6 |
% |
|
— |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
295 |
|
|
|
8 |
% |
|
19 |
% |
|
(11 |
)% |
|
— |
% |
|
— |
% |
Advanced Performance Materials |
|
|
346 |
|
|
|
24 |
% |
|
10 |
% |
|
15 |
% |
|
(1 |
)% |
|
— |
% |
Chemical Solutions |
|
|
69 |
|
|
|
(27 |
)% |
|
8 |
% |
|
14 |
% |
|
— |
% |
|
(49 |
)% |
Quarterly Change in |
|
|||||||||||||||||||
|
|
Percentage Change vs. |
|
Percentage Change Due To |
|
|||||||||||||||
|
|
|
|
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
|||||||
|
$ |
|
1,575 |
|
|
|
(6 |
)% |
|
4 |
% |
|
(8 |
)% |
|
— |
% |
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium Technologies |
$ |
|
865 |
|
|
|
(5 |
)% |
|
5 |
% |
|
(10 |
)% |
|
— |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
295 |
|
|
|
(7 |
)% |
|
4 |
% |
|
(11 |
)% |
|
— |
% |
|
— |
% |
Advanced Performance Materials |
|
|
346 |
|
|
|
(3 |
)% |
|
4 |
% |
|
(6 |
)% |
|
(1 |
)% |
|
— |
% |
Chemical Solutions |
|
|
69 |
|
|
|
(30 |
)% |
|
(4 |
)% |
|
2 |
% |
|
— |
% |
|
(28 |
)%
|
Segment Financial and Operating Data (Unaudited)
(Dollars in millions)
Segment |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Increase / |
|
|||||||||
|
2021 |
|
|
2020 |
|
|
(Decrease) |
|
||||||
Titanium Technologies |
$ |
|
3,355 |
|
|
$ |
|
2,402 |
|
|
$ |
|
953 |
|
Thermal & Specialized Solutions |
|
|
1,257 |
|
|
|
|
1,105 |
|
|
|
|
152 |
|
Advanced Performance Materials |
|
|
1,397 |
|
|
|
|
1,104 |
|
|
|
|
293 |
|
Chemical Solutions |
|
|
336 |
|
|
|
|
358 |
|
|
|
|
(22 |
) |
Total |
$ |
|
6,345 |
|
|
$ |
|
4,969 |
|
|
$ |
|
1,376 |
|
Segment Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|
Increase / |
|
|||||||||
|
2021 |
|
|
2020 |
|
|
(Decrease) |
|
||||||
Titanium Technologies |
$ |
|
809 |
|
|
$ |
|
510 |
|
|
$ |
|
299 |
|
Thermal & Specialized Solutions |
|
|
412 |
|
|
|
|
354 |
|
|
|
|
58 |
|
Advanced Performance Materials |
|
|
261 |
|
|
|
|
126 |
|
|
|
|
135 |
|
Chemical Solutions |
|
|
51 |
|
|
|
|
73 |
|
|
|
|
(22 |
) |
Corporate and Other |
|
|
(220 |
) |
|
|
|
(184 |
) |
|
|
|
(36 |
) |
Total Adjusted EBITDA |
$ |
|
1,313 |
|
|
$ |
|
879 |
|
|
$ |
|
434 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
Change in |
|
|||||||||||||||||||
|
|
Percentage Change vs. |
|
Percentage Change Due To |
|
|||||||||||||||
|
|
|
|
|
|
|
Price |
|
Volume |
|
Currency |
|
Portfolio |
|
||||||
|
$ |
|
6,345 |
|
|
|
28 |
% |
|
7 |
% |
|
21 |
% |
|
2 |
% |
|
(2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Titanium Technologies |
$ |
|
3,355 |
|
|
|
40 |
% |
|
10 |
% |
|
28 |
% |
|
2 |
% |
|
— |
% |
Thermal & Specialized Solutions |
|
|
1,257 |
|
|
|
14 |
% |
|
4 |
% |
|
9 |
% |
|
1 |
% |
|
— |
% |
Advanced Performance Materials |
|
|
1,397 |
|
|
|
27 |
% |
|
4 |
% |
|
20 |
% |
|
3 |
% |
|
— |
% |
Chemical Solutions |
|
|
336 |
|
|
|
(6 |
)% |
|
7 |
% |
|
13 |
% |
|
— |
% |
|
(26 |
)% |
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, including 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.
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
||||||||||
Net income attributable to Chemours |
|
$ |
|
233 |
|
|
$ |
|
19 |
|
|
$ |
|
214 |
|
|
$ |
|
608 |
|
|
$ |
|
219 |
|
Non-operating pension and other post-retirement employee benefit (income) cost |
|
|
|
(2 |
) |
|
|
|
1 |
|
|
|
|
(2 |
) |
|
|
|
(9 |
) |
|
|
|
(1 |
) |
Exchange (gains) losses, net |
|
|
|
(5 |
) |
|
|
|
(2 |
) |
|
|
|
(3 |
) |
|
|
|
(3 |
) |
|
|
|
26 |
|
Restructuring, asset-related, and other charges (1) |
|
|
|
3 |
|
|
|
|
43 |
|
|
|
|
3 |
|
|
|
|
6 |
|
|
|
|
80 |
|
Loss on extinguishment of debt |
|
|
|
1 |
|
|
|
|
22 |
|
|
|
|
20 |
|
|
|
|
21 |
|
|
|
|
22 |
|
Gain on sales of assets and businesses (2,3) |
|
|
|
(113 |
) |
|
|
|
(8 |
) |
|
|
|
(1 |
) |
|
|
|
(115 |
) |
|
|
|
(8 |
) |
Natural disasters and catastrophic events (4) |
|
|
|
2 |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
21 |
|
|
|
|
— |
|
Transaction costs |
|
|
|
(3 |
) |
|
|
|
— |
|
|
|
|
2 |
|
|
|
|
4 |
|
|
|
|
2 |
|
Qualified spend recovery (5) |
|
|
|
(8 |
) |
|
|
|
— |
|
|
|
|
(12 |
) |
|
|
|
(20 |
) |
|
|
|
— |
|
Legal and environmental charges (6,7) |
|
|
|
11 |
|
|
|
|
37 |
|
|
|
|
11 |
|
|
|
|
230 |
|
|
|
|
49 |
|
Adjustments made to income taxes (8) |
|
|
|
(3 |
) |
|
|
|
9 |
|
|
|
|
(14 |
) |
|
|
|
(27 |
) |
|
|
|
(23 |
) |
Provision for (benefit from) income taxes relating to reconciling items (9) |
|
|
|
19 |
|
|
|
|
(18 |
) |
|
|
|
(4 |
) |
|
|
|
(42 |
) |
|
|
|
(37 |
) |
Adjusted Net Income (10) |
|
|
|
135 |
|
|
|
|
103 |
|
|
|
|
214 |
|
|
|
|
674 |
|
|
|
|
329 |
|
Interest expense, net |
|
|
|
43 |
|
|
|
|
50 |
|
|
|
|
45 |
|
|
|
|
185 |
|
|
|
|
210 |
|
Depreciation and amortization |
|
|
|
76 |
|
|
|
|
80 |
|
|
|
|
78 |
|
|
|
|
317 |
|
|
|
|
320 |
|
All remaining provision for income taxes (10) |
|
|
|
53 |
|
|
|
|
13 |
|
|
|
|
35 |
|
|
|
|
137 |
|
|
|
|
20 |
|
Adjusted EBITDA |
|
$ |
|
307 |
|
|
$ |
|
246 |
|
|
$ |
|
372 |
|
|
$ |
|
1,313 |
|
|
$ |
|
879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted effective tax rate (10) |
|
|
|
28 |
% |
|
|
|
11 |
% |
|
|
|
14 |
% |
|
|
|
17 |
% |
|
|
|
6 |
% |
-
Includes restructuring, asset-related, and other charges, which are discussed in further detail in “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
December 31, 2021 . -
The three months and year ended
December 31, 2021 include a net pre-tax gain on sale of associated with the sale of the Mining Solutions business of our Chemical Solutions segment which is further discussed in “Note 4 – Acquisitions and Divestitures” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended$112 December 31, 2021 . -
The year ended
December 31, 2020 includes a gain of associated with the sale of our$6 Oakley, California site, which was contingent upon the completion of certain environmental remediation activities at the site. - Natural disasters and catastrophic events pertains to the total cost of plant repairs and utility charges in excess of historical averages caused by Winter Storm Uri.
-
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
December 31, 2021 . -
Legal charges pertains to litigation settlements, PFOA drinking water treatment accruals, and other legal charges. The year ended
December 31, 2020 includes of charges in connection with our portion of the costs to settle PFOA multi-district litigation in$29 Ohio . See “Note 22 – Commitments and Contingent Liabilities” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year endedDecember 31, 2021 for further details. -
In 2021, environmental charges pertains to management’s assessment of estimated liabilities associated with certain non-recurring environmental remediation expenses at various sites. For the year ended
December 31, 2021 , environmental charges include related to the construction of the barrier wall, operation of the groundwater extraction and treatment system, and long-term enhancements to the old outfall treatment system at$169 Fayetteville . In 2020, environmental charges pertains to management’s assessment of estimated liabilities associated with on-site remediation, off-site groundwater remediation, and toxicity studies related toFayetteville . See “Note 22 – Commitments and Contingent Liabilities” to the Consolidated Financial Statements in our Annual Report on Form 10-K for the year endedDecember 31, 2021 for further details. - 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.
- The income tax impacts included in this caption are determined using the applicable rates in the taxing jurisdictions in which income or expense occurred and represents both current and deferred income tax expense or benefit based on the nature of the non-GAAP financial measure.
-
Adjusted effective tax rate is defined as all remaining provision for income taxes divided by pre-tax Adjusted Net Income.
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 (“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 |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
||||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income attributable to Chemours |
|
$ |
|
233 |
|
|
$ |
|
19 |
|
|
$ |
|
214 |
|
|
$ |
|
608 |
|
|
$ |
|
219 |
|
Adjusted Net Income |
|
|
|
135 |
|
|
|
|
103 |
|
|
|
|
214 |
|
|
|
|
674 |
|
|
|
|
329 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Weighted-average number of common shares outstanding - basic |
|
|
|
162,982,696 |
|
|
|
|
165,056,160 |
|
|
|
|
165,113,024 |
|
|
|
|
164,943,575 |
|
|
|
|
164,681,827 |
|
Dilutive effect of the Company's employee compensation plans |
|
|
|
3,790,789 |
|
|
|
|
3,031,379 |
|
|
|
|
3,841,670 |
|
|
|
|
3,754,864 |
|
|
|
|
1,664,702 |
|
Weighted-average number of common shares outstanding - diluted |
|
|
|
166,773,485 |
|
|
|
|
168,087,539 |
|
|
|
|
168,954,694 |
|
|
|
|
168,698,439 |
|
|
|
|
166,346,529 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per share of common stock |
|
$ |
|
1.43 |
|
|
$ |
|
0.12 |
|
|
$ |
|
1.30 |
|
|
$ |
|
3.69 |
|
|
$ |
|
1.33 |
|
Diluted earnings per share of common stock |
|
|
|
1.40 |
|
|
|
|
0.11 |
|
|
|
|
1.27 |
|
|
|
|
3.60 |
|
|
|
|
1.32 |
|
Adjusted basic earnings per share of common stock |
|
|
|
0.83 |
|
|
|
|
0.62 |
|
|
|
|
1.30 |
|
|
|
|
4.09 |
|
|
|
|
2.00 |
|
Adjusted diluted earnings per share of common stock |
|
|
|
0.81 |
|
|
|
|
0.61 |
|
|
|
|
1.27 |
|
|
|
|
4.00 |
|
|
|
|
1.98 |
|
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(In millions, except per share amounts)
2022 Estimated GAAP Net Income Attributable to Chemours to Estimated Adjusted Net Income, Estimated Adjusted EBITDA and Estimated Adjusted EPS Reconciliation (*)
|
|
Year Ended |
|
|||||
|
|
Low |
|
|
High |
|
||
Net income attributable to Chemours |
|
$ |
670 |
|
|
$ |
775 |
|
Restructuring, transaction, and other costs, net |
|
|
— |
|
|
|
— |
|
Adjusted Net Income |
|
|
670 |
|
|
|
775 |
|
Interest expense, net |
|
|
170 |
|
|
|
170 |
|
Depreciation and amortization |
|
|
310 |
|
|
|
310 |
|
All remaining provision for income taxes |
|
|
150 |
|
|
|
170 |
|
Adjusted EBITDA |
|
$ |
1,300 |
|
|
$ |
1,425 |
|
|
|
|
|
|
|
|
|
|
Weighted-average number of common shares outstanding - basic (1) |
|
|
161.0 |
|
|
|
161.0 |
|
Dilutive effect of the Company's employee compensation plans (2) |
|
|
3.8 |
|
|
|
3.8 |
|
Weighted-average number of common shares outstanding - diluted |
|
|
164.8 |
|
|
|
164.8 |
|
|
|
|
|
|
|
|
|
|
Basic earnings per share of common stock |
|
$ |
4.16 |
|
|
$ |
4.81 |
|
Diluted earnings per share of common stock (3) |
|
|
4.07 |
|
|
|
4.70 |
|
Adjusted basic earnings per share of common stock |
|
|
4.16 |
|
|
|
4.81 |
|
Adjusted diluted earnings per share of common stock (3) |
|
|
4.07 |
|
|
|
4.70 |
|
-
The Company’s estimates for the weighted-average number of common shares outstanding – basic reflect the Company’s shares outstanding as of
December 31, 2021 , which is carried forward for the projection period. -
The Company’s estimates for the dilutive effect of the Company’s employee compensation plans reflect the dilutive effect for the three months ended
December 31, 2021 , which is carried forward for the projection period. - Diluted earnings per share is calculated using net income available to common shareholders divided by diluted weighted-average common shares outstanding during each period, which includes unvested restricted shares. Diluted earnings per share considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.
(*) The Company’s estimates reflect its current visibility and expectations based on market factors, such as currency movements, macro-economic factors, and end-market demand. Actual results could differ materially from these current estimates.
Mining Solutions Adjusted EBITDA Contribution to Mining Solutions Income Before Income Taxes Reconciliation
|
Year Ended |
|
||
Mining Solutions Adjusted EBITDA contribution |
$ |
|
52 |
|
Corporate allocation |
|
|
(13 |
) |
Depreciation and amortization |
|
|
(6 |
) |
Restructuring, asset-related, and other charges |
|
|
7 |
|
Gain on sales of assets and businesses (1) |
|
|
112 |
|
Transaction and other costs |
|
|
(2 |
) |
Mining Solutions income before income taxes |
$ |
|
150 |
|
-
Gain on sales of assets and business includes transaction costs allocated from corporate related to the sale of the Mining Solutions business.
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(Dollars in millions)
GAAP Cash Flow Provided by Operating Activities to Free Cash Flows Reconciliation
Free Cash Flows is defined as cash flows provided by (used for) operating activities, less purchases of property, plant, and equipment as shown in the consolidated statements of cash flows.
|
|
Three Months Ended |
|
|
Year Ended |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
||||||||||
Cash provided by operating activities |
|
$ |
|
214 |
|
|
$ |
|
353 |
|
|
$ |
|
311 |
|
|
$ |
|
820 |
|
|
$ |
|
807 |
|
Less: Purchases of property, plant, and equipment |
|
|
|
(83 |
) |
|
|
|
(53 |
) |
|
|
|
(67 |
) |
|
|
|
(277 |
) |
|
|
|
(267 |
) |
Free Cash Flows |
|
$ |
|
131 |
|
|
$ |
|
300 |
|
|
$ |
|
244 |
|
|
$ |
|
543 |
|
|
$ |
|
540 |
|
2022 Estimated GAAP Cash Flow Provided by Operating Activities to Estimated Free Cash Flow Reconciliation (*)
|
|
(Estimated) |
|
|
|
Year Ended |
|
Cash flow provided by operating activities |
|
$ |
>900 |
Less: Purchases of property, plant, and equipment |
|
|
~(400) |
Free Cash Flows |
|
$ |
>500 |
(*) The Company’s estimates reflect its current visibility and expectations based on market factors, such as currency movements, macro-economic factors, and end-market demand. Actual results could differ materially from these current estimates.
Return on Invested Capital Reconciliation
Return on
|
|
Year Ended |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Adjusted EBITDA (1) |
|
$ |
1,313 |
|
|
$ |
879 |
|
Less: Depreciation and amortization |
|
|
(317 |
) |
|
|
(320 |
) |
Adjusted EBIT |
|
$ |
996 |
|
|
$ |
559 |
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Total debt, net (2) |
|
$ |
3,749 |
|
|
$ |
4,026 |
|
Total equity |
|
|
1,082 |
|
|
|
815 |
|
Less: Cash and cash equivalents |
|
|
(1,451 |
) |
|
|
(1,105 |
) |
Invested capital, net |
|
$ |
3,380 |
|
|
$ |
3,736 |
|
Average invested capital (3) |
|
$ |
3,705 |
|
|
$ |
3,895 |
|
|
|
|
|
|
|
|
|
|
Return on |
|
|
27 |
% |
|
|
14 |
% |
- Reconciliations of net income (loss) attributable to Chemours to Adjusted EBITDA are provided on a quarterly basis. See the preceding table for the reconciliation of net income (loss) attributable to Chemours to Adjusted EBITDA.
-
Total debt, net is net of unamortized issue discounts of
and$5 and debt issuance costs of$7 and$28 at$28 December 31, 2021 and 2020, respectively. -
Average invested capital is based on a five-quarter trailing average of invested capital, net.
Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures (Unaudited)
(Dollars in millions)
Net Leverage Ratio Reconciliation
Net Leverage Ratio is defined as our total debt principal, net, or our total debt principal outstanding less cash and cash equivalents, divided by Adjusted EBITDA.
|
|
As of |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Total debt principal |
|
$ |
3,782 |
|
|
$ |
4,061 |
|
Less: Cash and cash equivalents |
|
|
(1,451 |
) |
|
|
(1,105 |
) |
Total debt principal, net |
|
$ |
2,331 |
|
|
$ |
2,956 |
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
Adjusted EBITDA (1) |
|
$ |
1,313 |
|
|
$ |
879 |
|
|
|
|
|
|
|
|
|
|
Net Leverage Ratio |
|
1.8x |
|
|
3.4x |
|
- Reconciliations of net income (loss) attributable to Chemours to Adjusted EBITDA are provided on a quarterly basis. See the preceding table for the reconciliation of net income (loss) attributable to Chemours to Adjusted EBITDA.
1 Earnings per share (EPS) on diluted basis
2 The proceeds received from the Mining Solutions transaction were approximately 10 times the 2021 Adjusted EBITDA contributed by the business
3 As of
View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005870/en/
INVESTORS
SVP, Chief Development Officer
+1.302.773.2263
investor@chemours.com
NEWS MEDIA
+1.302.219.7140
media@chemours.com
Source:
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