Chemours Co (CC) 2024 Q1 法說會逐字稿

Good morning. My name is Lovely, and I will be your conference operator today. I would like to welcome everyone to The Chemours Company First Quarter 2024 Results Conference Call.

早安.我叫 Lovely，今天我將擔任您的會議主持人。歡迎大家參加科慕公司 2024 年第一季業績電話會議。

(Operator Instructions) I would like to remind everyone that this call -- conference call is being recorded. I would now like to hand the conference call over to Brandon Ontjes, Vice President of Investor Relations for Chemours. You may now begin your conference.

（操作員指示）我想提醒大家，本次電話會議正在錄音。現在，我想將電話會議交給科慕投資者關係副總裁 Brandon Ontjes。您現在可以開始您的會議了。

Good morning, everybody. Welcome to The Chemours Company's First Quarter 2024 Earnings Conference Call. I'm joined today by Denise Dignam, Chemour's President and Chief Executive Officer; and our Interim Chief Financial Officer, Matt Abbott.

大家早安。歡迎參加科慕公司 2024 年第一季財報電話會議。今天與我一起出席活動的還有科慕總裁兼執行長 Denise Dignam；以及我們的臨時財務長馬特·阿博特（Matt Abbott）。

Before we start, I would like to remind you that comments made on this call as well as in the supplemental information provided in our presentation and on our website contain forward-looking statements that involve risks and uncertainties as described in Chemours' SEC filings. These forward-looking statements are not guarantees of future performance and are based on certain assumptions and expectations of future events that may not be realized. Actual results may differ, and Chemours undertakes no duty to update any forward-looking statements as a result of future developments or new information. During the course of this call, we will refer to certain non-GAAP financial measures that we believe are useful to investors evaluating the company's performance. A reconciliation of non-GAAP terms and adjustments are included in our press release issued yesterday. Also, we posted our earnings presentation to our website last evening.

在我們開始之前，我想提醒您，本次電話會議中發表的評論以及我們在簡報和網站上提供的補充資訊包含前瞻性陳述，這些陳述涉及科慕美國證券交易委員會文件中所述的風險和不確定性。這些前瞻性陳述並不能保證未來的業績，而是基於對可能無法實現的未來事件的某些假設和預期。實際結果可能有所不同，並且科慕不承擔因未來發展或新資訊而更新任何前瞻性聲明的義務。在本次電話會議中，我們將參考一些非公認會計準則財務指標，我們認為這些指標對投資人評估公司績效很有用。我們昨天發布的新聞稿中包含了非公認會計準則條款和調整的對帳。此外，我們昨晚在我們的網站上發布了我們的收益報告。

With that, I will turn the call over to Denise Dignam.

說完這些，我會把電話轉給 Denise Dignam。

Thank you, Brandon, and good morning, everyone. We're going to start this morning by talking about our overall performance and dive more deeply into TT. Then I'm going to turn the call over to Matt to cover our segment level performance as well as our balance sheet and liquidity position. I'll then provide our outlook for the second quarter and spend some time on TSS because I received a lot of questions from many of you on this business during our recent meetings. We'll then close with your questions.

謝謝你，布蘭登，大家早安。今天早上我們將首先討論我們的整體表現，然後深入探討 TT。然後我將把電話轉給馬特，讓他介紹我們的分部層級的表現以及我們的資產負債表和流動性狀況。然後，我將提供我們對第二季度的展望，並花一些時間討論 TSS，因為在最近的會議上，我收到了很多關於這項業務的問題。我們將以您的問題作為結束。

Let's start with our first quarter performance. Our TT segment met our top line expectations for the quarter. Adjusted EBITDA for TT was better than expected for 3 primary reasons: first, our actions to allocate TiO2 volumes to higher-yield regions; second, more favorable than expected timing of lowest -- lower cost ore consumption, which we anticipate will shift mostly to the second quarter; and third, our transformation plan continuing to produce strong results. Our APM and TSS segments both performed in line with our expectations for net sales and adjusted EBITDA for the first quarter. The economically sensitive end markets served by APM began to show some signs of a modest recovery during the quarter. TSS, in addition to benefiting from traditional seasonality across the refrigerants product portfolio continue to leverage its advantage in Opteon stationary blends to support the transition to low GWP solutions in connection with the recent incremental regulatory step downs in the U.S. and Europe.

讓我們從第一季的表現開始。我們的 TT 部門本季的營收達到了預期。 TT 的調整後 EBITDA 好於預期，主要有 3 個原因：首先，我們採取行動將 TiO2 產量分配到產量較高的地區；第二，最低成本礦石消費的時機比預期更有利，我們預計這將主要轉移到第二季；第三，我們的轉型計劃持續取得強勁成果。我們的 APM 和 TSS 部門的表現均符合我們對第一季淨銷售額和調整後 EBITDA 的預期。 APM 服務的經濟敏感型終端市場在本季開始顯示出一些溫和復甦的跡象。 TSS 除受益於冷媒產品組合的傳統季節性之外，還繼續利用其在 Opteon 固定式混合物中的優勢，以支持向低 GWP 解決方案的過渡，以適應最近美國和歐洲逐步放鬆的監管規定。

In these regions, TSS also experienced the continued trends in Opteon demand for aftermarket automotive solutions in line with our expectations. Now back to TT. We have not seen our order book velocity at these levels since the third quarter of 2022, and we are seeing early signs of restocking. However, we have not seen a market catalyst such as a decrease in interest rates, improvement in residential building or an increase in auto production. Digging into the first quarter in the most basic terms, we made purposeful choices in terms of production and volume allocation. As we finish 2023, we did not see appreciable improvement in the market, and we remain appropriately conservative with our production plans. First, we made the decision to not chase volume in low-value markets, instead we allocated TiO2 volumes to higher yield end markets.

在這些地區，TSS 也經歷了 Opteon 對售後汽車解決方案需求的持續趨勢，符合我們的預期。現在回到 TT。自 2022 年第三季以來，我們的訂單速度還沒有達到這樣的水平，而且我們看到了補貨的早期跡象。然而，我們還沒有看到利率下降、住宅建築改善或汽車產量增加等市場催化劑。從最基本的層面深入研究第一季度，我們在生產和產量分配方面做出了有目的的選擇。截至 2023 年末，我們並未看到市場明顯改善，因此我們對生產計劃仍持適當保守的態度。首先，我們決定不追求低價值市場的數量，而是將 TiO2 數量分配給更高收益的終端市場。

While our pricing through the end of the quarter is lower than the prior year, we've been able to retain stronger overall pricing relative to the market. As referenced, this pricing position helped us drive improved earnings as we exited the first quarter. Second, we consumed a higher concentration of lower cost ore, including from our own lines, which contributed to our profitability. And third, as previously disclosed, we pulled forward previously planned second quarter maintenance to ensure we are well positioned for an eventual market recovery. Once we completed this maintenance, we brought the plant back online and its performance has never been better. Consistent with what I shared in our last earnings call, we have seen our order book velocity improve and have increased production across our manufacturing circuit. This supports our expected growth in TT in the second quarter.

雖然本季末的定價低於去年同期，但我們仍能維持相對於市場更強勁的整體定價。如上所述，這一定價立場幫助我們在第一季結束時提高了利潤。其次，我們消耗了更高濃度的低成本礦石，包括來自我們自己的生產線的礦石，這有助於提高我們的獲利能力。第三，正如先前披露的那樣，我們提前進行了先前計劃的第​​二季維護，以確保我們為最終的市場復甦做好準備。一旦完成維護，我們就會恢復工廠的運行，並且其性能從未如此好。與我在上次財報電話會議上分享的內容一致，我們的訂單速度有所提高，整個製造環節的產量都有所增加。這支持了我們對第二季 TT 成長的預期。

Now let's take a step back and look at our transformation plan from a wider lens. The main objective of our plan is to secure our long-term leadership position by becoming one of the lowest-cost TiO2 producers globally. Our initial focus was twofold. First, optimizing our manufacturing circuit to drive higher production efficiency. This started with the closing of Kuan Yin and redistributing production across lower-cost manufacturing sites in North America, without sacrificing product quality or reliability. This has been a clear success. Second, driving improved productivity from our mining operations and better utilizing that feedstock in our TiO2 production. To date, our mining performance has shown significant improvement with the consumption of our own ore feedstock improving to nearly 15% from less than 10% in late 2023.

現在讓我們退一步，從更廣闊的視角來審視我們的轉型計畫。我們計劃的主要目標是成為全球成本最低的 TiO2 生產商之一，從而確保我們的長期領導地位。我們最初的關注點有兩個。第一，優化生產流程，提高生產效率。這項計畫始於關閉觀音工廠，並將生產重新分配到北美成本較低的製造基地，同時不犧牲產品品質或可靠性。這顯然是一個成功。其次，提高我們採礦作業的生產力，並在 TiO2 生產中更好地利用原料。迄今為止，我們的採礦業績已有顯著改善，我們自有礦石原料的消耗量從 2023 年底的不到 10% 提高到近 15%。

The meaningful progress that we are making on cost savings is clearly evident in the first quarter results. Our actions more than offset the decline in local price year-over-year. Overall, since we announced the TT transformation plan in 2023, we have eliminated approximately $90 million of operating expenses. $50 million of this was in the latter half of 2023, and another $40 million in year-over-year cost outs were realized in the first quarter of 2024. For the full year 2024, we are well on our way towards our cost-out target of $125 million. Now I'll turn things over to Matt to dive more deeply into the results.

我們在第一季的業績中明顯看到了在成本節約方面取得的重大進展。我們的行動遠遠超過了當地價格同比下降的影響。總體而言，自 2023 年宣布 TT 轉型計畫以來，我們已經削減了約 9,000 萬美元的營運費用。其中 5,000 萬美元發生在 2023 年下半年，另外 4,000 萬美元的年比成本支出發生在 2024 年第一季。現在我將把問題交給馬特，讓他更深入地探討結果。

Thank you, Denise. Good morning, everyone. Our consolidated net sales for the first quarter were approximately $1.4 billion compared with net sales of $1.5 billion for the same period in 2023. Primarily reflecting a 6% decrease in volumes in APM and TSS and a 5% decline in price across all 3 businesses. Consolidated adjusted EBITDA decreased 37% year-over-year from $304 million to $193 million. This decrease was primarily driven by demand weakness combined with lower cost absorption and APM and a slower start to 2024 in TSS, partially offset by the cost-out actions in TT that Denise just mentioned. This decline in consolidated adjusted EBITDA also includes a $5 million unallocated item related to third-party costs associated with the TT transformation plan. We expect this amount to recur quarterly for the remainder of the year.

謝謝你，丹尼斯。大家早安。我們第一季的綜合淨銷售額約為 14 億美元，而 2023 年同期的淨銷售額為 15 億美元。綜合調整後 EBITDA 年減 37%，從 3.04 億美元降至 1.93 億美元。這種下降主要是由於需求疲軟、成本吸收和 APM 下降以及 2024 年 TSS 起步較慢所致，但 Denise 剛才提到的 TT 的成本削減行動部分抵消了這一下降。合併調整後 EBITDA 的下降還包括與 TT 轉型計劃相關的第三方成本相關的 500 萬美元未分配項目。我們預計該金額將在今年剩餘時間內每季重複出現。

Consolidated net income was $52 million compared with $145 million in the prior year quarter. Net income per diluted share was $0.34 compared with $0.96 in the prior year quarter. Our corporate expenses were $55 million in the first quarter of 2024, a $10 million increase versus the prior year quarter and approximately $25 million lower than expected. Some of the costs related to the outcome of the audit committee's internal review and the company's remediation of material weaknesses were lower than we forecasted. The costs related to these efforts approximated $14 million during the first quarter while other anticipated expenses moved into the second quarter. Adding to this, the first quarter further benefited from lower stock-based compensation expenses, driven by lower overall achieved performance and the negative discretion exercised by the Board of Directors on former executive compensation.

綜合淨收入為 5,200 萬美元，而去年同期為 1.45 億美元。每股攤薄淨利潤為 0.34 美元，去年同期為 0.96 美元。 2024 年第一季度，我們的公司費用為 5,500 萬美元，比去年同期增加 1,000 萬美元，比預期低約 2,500 萬美元。與審計委員會內部審查結果以及公司對重大缺陷的補救措施相關的一些成本低於我們的預測。第一季與這些工作相關的成本約為 1400 萬美元，而其他預計支出則轉移到第二季。此外，由於整體業績下降以及董事會對前任高階主管薪酬行使的負面自由裁量權，第一季股票薪酬費用下降進一步受益。

Finally, the company recognized lower-than-anticipated environmental remediation expenses in the first quarter due to timing of planned work. We expect corporate expenses to be higher in the second quarter by approximately $15 million to $20 million sequentially. This range primarily reflects a normalization of expenses associated with the company's long-term incentive plan and environmental remediation costs. Additionally, the company anticipates expenses related to the remediation of our material weaknesses and other recommendations arising from the audit committee's internal review will be relatively flat quarter-over-quarter. We anticipate there may be additional costs related to the remediation of material weaknesses over the balance of the year.

最後，由於計劃工作的時間安排，公司第一季確認的環境修復費用低於預期。我們預計第二季公司支出將比上一季增加約 1,500 萬至 2,000 萬美元。該範圍主要反映了與公司長期激勵計劃和環境修復成本相關的費用的正常化。此外，公司預計，與糾正我們的重大缺陷以及審計委員會內部審查提出的其他建議相關的費用將與上一季相比相對持平。我們預計，今年餘下時間可能還會產生與修復重大缺陷相關的額外成本。

Turning to our business segment performance, starting with TT. In the first quarter, TT net sales decreased 7% year-over-year to $588 million. This decrease was primarily driven by a 7% decline in pricing with volume and currency remaining relatively flat. Price decreased versus the prior year period as index-based pricing contractual stability was more than offset by decreases in the market exposed customer portfolio. Volumes were flat when compared to the prior year quarter, with strength in the Asia Pacific and EMEA regions offsetting weakness in North America and Latin America. TT's first quarter adjusted EBITDA was flat at $70 million versus the prior year quarter. Adjusted EBITDA margin improved 100 basis points to 12%, reflecting the impact of a decrease in price, more than offset by the cost savings realized from the TT Transformation Plan.

談談我們的業務部門表現，從 TT 開始。第一季度，TT淨銷售額年減7%至5.88億美元。下降的主要原因是價格下跌 7%，而交易量和貨幣保持相對穩定。由於基於指數的定價合約穩定性被市場暴露客戶組合的減少所抵消，價格與去年同期相比有所下降。與去年同期相比，銷量持平，亞太地區和歐洲、中東和非洲地區的強勁表現抵消了北美和拉丁美洲的疲軟。 TT 第一季調整後的 EBITDA 與去年同期持平，為 7,000 萬美元。調整後的 EBITDA 利潤率提高了 100 個基點，達到 12%，反映了價格下降的影響，但被 TT 轉型計劃實現的成本節約所抵消。

On a sequential basis, net sales decreased by 10%, completely driven by a decline in volume. Adjusted EBITDA increased by 9% versus the prior quarter primarily driven by the referenced actions to allocate volumes to higher-yielding regions and the timing of lower cost ore consumption. Moving now to our TSS segment. For the first quarter, TSS net sales were approximately $449 million, down 8% from the first quarter 2023. This decrease was the result of a 6% decrease in volume and a 2% decrease in price with currency impact flat. The volume decrease was primarily due to lower demand in the Foam, Propellants and other products portfolio. While volumes in the overall refrigerant product portfolio remained relatively flat, we did observe weaker demand in the automotive OEM market in line with market expectations.

與上一季相比，淨銷售額下降了 10%，完全是由於銷量下降造成的。調整後 EBITDA 較上一季成長 9%，主要由於將產量分配至高產量地區以及低成本礦石消耗時機的推動。現在轉到我們的 TSS 部分。第一季度，TSS 淨銷售額約為 4.49 億美元，較 2023 年第一季下降 8%。銷量下降主要是由於泡沫、推進劑和其他產品組合的需求下降。雖然整體冷媒產品組合的銷售量保持相對平穩，但我們確實觀察到汽車 OEM 市場的需求減弱，這符合市場預期。

This was partially offset by increased demand for Opteon products in stationary end markets, driven by the regulatory transition to low GWP solutions. The year-over-year price decrease was primarily driven by weaker legacy refrigerant pricing influenced by higher market inventory levels. We anticipate these legacy refrigerant inventory levels to remain elevated throughout the remainder of the year. Contractual pricing declines in the Opteon auto OEM market contributed to this decline. This weaker refrigerants product portfolio pricing was partially offset by stronger Opteon blends pricing consistent with stronger stationary demand. First quarter adjusted EBITDA for TSS decreased 18% year-over-year to $151 million, with adjusted EBITDA margin down 4 percentage points to 34%. These declines were driven by the decreases in sales, volume and price as well as ongoing investments in immersion cooling and next-generation refrigerants.

由於監管部門向低 GWP 解決方案轉變，固定終端市場對 Opteon 產品的需求增加部分抵消了這一增長。價格年減主要是因為市場庫存水準較高導致傳統冷媒價格走弱。我們預計這些傳統冷媒的庫存水準在今年剩餘時間內仍將保持在高位。 Opteon 汽車 OEM 市場的合約價格下降導致了這種下降。由於固定需求增強，Opteon 混合物的價格上漲，部分抵消了冷媒產品組合價格走弱的影響。 TSS 第一季調整後 EBITDA 年減 18% 至 1.51 億美元，調整後 EBITDA 利潤率下降 4 個百分點至 34%。導致這些下降的原因包括銷售額、銷售和價格的下降，以及對浸入式冷卻和下一代冷媒的持續投資。

On a sequential basis, net sales increased 20%, with volume and price increasing 15% and 5%, respectively. This increase reflected the seasonal strength across the refrigerants product portfolio, partially offset by the softer volumes in the Foam, Propellants and other products portfolio due to its exposure to construction markets, which remain weak. Now turning to APM. APM's first quarter 2024 net sales were $299 million, a 23% decrease compared to the first quarter of 2023. This decrease was primarily driven by an 18% decline in volume, a 5% decrease in price and flat currency impact. The volume decrease was primarily due to weaker demand in more economically sensitive and nonstrategic end markets and the tail impact of a previously disclosed extended maintenance outage during the fourth quarter of 2023, which remains resolved. Price decreased primarily due to mix and softer market dynamics compared with the prior year. First quarter 2024 net sales for the Performance Solutions product portfolio were $113 million, down 22% versus the prior year quarter.

與上一季相比，淨銷售額成長了 20%，銷量和價格分別成長了 15% 和 5%。這一成長反映了冷媒產品組合的季節性強勁表現，但因泡沫、推進劑和其他產品組合受建築市場影響而導致的銷量下降，部分抵消了這一增長。現在轉向 APM。 APM 2024 年第一季的淨銷售額為 2.99 億美元，與 2023 年第一季相比下降 23%。銷售下降主要由於經濟敏感度較高和非戰略性終端市場的需求減弱，以及 2023 年第四季度先前披露的延長維護停機的尾部影響，該影響目前仍未解決。與前一年相比，價格下降主要由於產品組合及市場動態疲軟。 2024 年第一季效能解決方案產品組合的淨銷售額為 1.13 億美元，較去年同期下降 22%。

First quarter 2024 net sales for the Advanced Materials product portfolio were $186 million, down 24% versus the prior year quarter. Adjusted EBITDA for APM was $30 million, a 64% decline year-over-year with adjusted EBITDA margin down 12 percentage points to 10%. These declines were primarily the result of the decrease in sales price, lower volume that drove lower fixed cost absorption and the impact of a now completed extended maintenance outage, partially offset by lower input costs. On a sequential basis, APM net sales decreased 8% with a 1% decrease in price, an 8% decrease in volume and a 1% favorable currency impact. From a product portfolio perspective, net sales declined 3% in the Advanced Materials and 16% in Performance Solutions, primarily driven by ongoing demand softness in the more economically sensitive end markets in the Advanced Materials product portfolio and specific product lines within the Performance Solutions product portfolio.

2024 年第一季先進材料產品組合的淨銷售額為 1.86 億美元，較去年同期下降 24%。 APM 的調整後 EBITDA 為 3,000 萬美元，年減 64%，調整後 EBITDA 利潤率下降 12 個百分點至 10%。下降的主要原因是銷售價格下降、銷售下降導致固定成本吸收減少，以及現已完成的延長維護停機的影響，但投入成本降低部分抵消了這一影響。與上一季相比，APM 淨銷售額下降 8%，其中價格下降 1%，銷量下降 8%，貨幣因素有利影響為 1%。從產品組合來看，先進材料業務的淨銷售額下降了 3%，性能解決方案業務的淨銷售額下降了 16%，這主要是由於先進材料產品組合中對經濟較為敏感的終端市場以及性能解決方案產品組合中特定產品線的需求持續疲軟所致。

The Performance Chemicals and Intermediates business in the company's other segment had net sales and adjusted EBITDA for the first quarter of 2024 of $14 million and $2 million, respectively. Turning now to our balance sheet and liquidity position. As of March 31, 2024, our consolidated gross debt was $4.1 billion. Our liquidity position was $1.6 billion, which included $746 million in unrestricted cash and cash equivalents and $853 million in revolver capacity, net of outstanding letters of credit. We did not draw on our revolver during the quarter, and our net leverage ratio increased to 3.7x. We also maintained $607 million in restricted cash and restricted cash equivalents, primarily held in the Water District Settlement Fund for the terms of the U.S. public water system settlement agreement that we have discussed before.

該公司其他部門的高性能化學品和中間體業務 2024 年第一季的淨銷售額和調整後 EBITDA 分別為 1,400 萬美元和 200 萬美元。現在來談談我們的資產負債表和流動性狀況。截至 2024 年 3 月 31 日，我們的總合併債務為 41 億美元。我們的流動資金狀況為 16 億美元，其中包括 7.46 億美元的非限制現金和現金等價物以及 8.53 億美元的循環信用證淨額。我們在本季沒有動用循環信貸，我們的淨槓桿率上升至 3.7 倍。我們還保留了 6.07 億美元的受限現金和受限現金等價物，主要用於水區和解基金，用於我們之前討論過的美國公共供水系統和解協議的條款。

We anticipate that we will no longer maintain our reversionary interest in this fund under the terms of the U.S. public Water District Settlement Agreement in the second quarter of 2024. When we relinquish our interest in this fund, we will also remove our current outstanding liability under the settlement. The total amount of this settlement was fully funded in Q3 of 2023 and requires no additional funding from unrestricted cash to meet this obligation. Our operating cash flow during the first quarter came in slightly better than expectations with the use of cash from operations of $290 million. Capital expenditures were $102 million, in line with our expectations, and we paid out $37 million in dividends to shareholders. As a reminder, outside of the net working capital timing actions disclosed in our Form 10-Q, we have a historical patent seasonality when it comes to operating cash flow due to the timing of sales and inventory.

我們預計，根據 2024 年第二季度美國公共水務區和解協議的條款，我們將不再維持對該基金的複歸權益。和解協議的總金額已於 2023 年第三季全額支付，不需要從非限制現金中額外提取資金來履行該義務。我們第一季的經營現金流略優於預期，經營現金流為 2.9 億美元。資本支出為 1.02 億美元，符合我們的預期，我們向股東支付了 3,700 萬美元的股息。提醒一下，除了我們在 10-Q 表中揭露的淨營運資本時機行動之外，由於銷售和庫存的時間安排，我們在營運現金流方面具有歷史專利季節性。

For the remainder of the first half of 2024, we expect unrestricted cash and cash equivalents remain relatively flat. And then we expect a working capital source of cash in the second half of the year as we sell product from inventory and collect receivables from our customers. In terms of our capital allocation, I wanted to take a moment to reiterate that we are focused on taking a balanced and disciplined approach to how we allocate capital. Our current strategy focuses on the following areas: one, selectively invest in organic and inorganic growth to enhance our portfolio; two, resolve contingent or accrued liabilities on terms and basis seems to be in the best interest of the company and our stakeholders; three, maintain appropriate leverage; and four, return cash to shareholders. Lastly, I would like to note that we continue to work on our remediation of the 4 material weaknesses disclosed in our annual report on Form 10-K. We are devoting substantial resources towards the implementation of enhanced procedures and internal controls over financial reporting.

在 2024 年上半年的剩餘時間內，我們預計無限制現金和現金等價物將保持相對穩定。然後，我們預計下半年將有一個營運資金現金來源，因為我們將銷售庫存產品並向客戶收取應收帳款。就我們的資本配置而言，我想花點時間重申一下，我們專注於採取平衡且有紀律的方法來分配資本。我們目前的策略重點在於以下領域：一、選擇性地投資有機和無機成長以增強我們的投資組合；二、依條款和基礎解決或有負債或應計負債似乎符合公司和利害關係人的最佳利益；三、保持適度槓桿；四是向股東返還現金。最後，我想指出的是，我們將繼續致力於糾正 10-K 表年度報告中揭露的 4 個重大缺陷。我們正在投入大量資源來實施加強的財務報告程序和內部控制。

We have established a project management offers to monitor progress and we have also engaged several professional services firms to assist in the execution of a comprehensive remediation plan. We have updated our disclosures around our remediation progress in Item 4 of our recently filed Form 10-Q, and we'll continue to provide updates in our future SEC filings. With that, Denise, back to you.

我們已經建立了專案管理部門來監控進度，我們還聘請了多家專業服務公司來協助執行全面的補救計劃。我們已在最近提交的 10-Q 表第 4 項中更新了有關補救進展的揭露，並將在未來的 SEC 文件中繼續提供更新資訊。好了，丹尼斯，回到你面前。

Thank you, Matt. Let's turn to our outlook. For now, we're going to continue to provide an outlook for the quarter ahead. On a consolidated basis, we expect net sales to increase approximately 15% sequentially in the second quarter with consolidated adjusted EBITDA growing in line, also up approximately 15%. We expect TT to achieve sequential net sales growth in the range of 15%, reflecting the strength in our order book. Although we haven't observed a broad level market catalysts, we have seen some slight seasonal demand strength in limited end markets and in some regions. We anticipate adjusted EBITDA for TT growing in line with the sequential increase in net sales. The growth will be supported by higher volumes and improved fixed cost absorption.

謝謝你，馬特。讓我們轉向我們的展望。目前，我們將繼續提供未來季度的展望。從綜合基礎來看，我們預計第二季淨銷售額將較上季成長約 15%，綜合調整後 EBITDA 將同步成長，也將成長約 15%。我們預計 TT 的淨銷售額將實現 15% 左右的連續成長，這反映了我們訂單的強勁成長。雖然我們沒有觀察到廣泛的市場催化劑，但我們在有限的終端市場和一些地區看到了輕微的季節性需求強勁。我們預計 TT 的調整後 EBITDA 將隨著淨銷售額的持續成長而同步成長。銷售量的提高和固定成本吸收的改善將推動成長。

However, this will be partially offset by the timing shift of higher cost ore consumption from the first quarter to the second quarter. We expect TSS to grow sequentially in the mid-teens for both net sales and adjusted EBITDA driven by both seasonality and elevated demand for Opteon products. The projected sequential growth for adjusted EBITDA incorporates a modest offset from higher input costs from non Corpus Christi source materials to service demand growth as well as lower fixed cost absorption on our legacy refrigerated production. It also includes continued investment in next-generation refrigerants and immersion cooling. We anticipate these R&D investments over the year to be approximately $15 million. Finally, we anticipate APM net sales to grow in the low teens sequentially driven by the Performance Solutions product portfolio.

然而，這項變更將因成本較高的礦石消費從第一季轉移到第二季而得到部分抵銷。我們預計，受季節性因素和 Opteon 產品需求成長的推動，TSS 的淨銷售額和調整後 EBITDA 將季增 15% 左右。調整後 EBITDA 預計的連續成長包含了來自非科珀斯克里斯蒂來源材料的更高投入成本對服務需求成長的適度抵消，以及我們傳統冷藏生產的較低固定成本吸收。它還包括對下一代冷媒和浸入式冷卻的持續投資。我們預計全年的研發投資約為 1500 萬美元。最後，我們預計，在性能解決方案產品組合的推動下，APM 淨銷售額將連續實現低幅度的成長。

We expect a slight improvement in performance across the Advanced Materials product portfolio, reflecting the modest recovery that I mentioned earlier in some of our economically sensitive end markets. We also anticipate adjusted EBITDA increasing close to 30% sequentially in APM as mix and fixed cost absorption improve as volume increases. As I mentioned in my opening, I received a number of questions on TSS during our recent investor meeting, so I wanted to spend some time diving deeper into this business. We've also incorporated several slides in our earnings supplement that provides some additional details. So let's start with a few of the basics.

我們預計先進材料產品組合的表現將略有改善，這反映了我之前提到的一些經濟敏感的終端市場的溫和復甦。我們也預計，隨著銷售量增加、產品組合和固定成本吸收改善，APM 的調整後 EBITDA 將較上季成長近 30%。正如我在開頭提到的，在我們最近的投資者會議上，我收到了許多關於 TSS 的問題，所以我想花一些時間深入研究這個業務。我們還在收益補充中加入了幾張投影片，提供了一些額外的細節。因此讓我們從一些基礎知識開始。

TSS consists of 2 different product portfolios. First refrigerants and second is Foam, Propellants and others, or FP&O. Our refrigerants product portfolio covers thermal management solutions for end markets such as mobile and stationary air conditioning for residential, commercial and industrial applications. Our FP&O product portfolio covers end markets such as foam blowing agents and propellants, including pharmaceutical grades. Approximately 80% of our overall TSS business is concentrated in North America and EMEA. Many of our products across both of our refrigerants and FP&O product portfolio utilize low global warming potential or GWP technologies. Most notably our Opteon brand and our HP 152a propellant. This is important because our TSS business is closely tied to the regulatory transitions established under the Kigali Amendment to the Montreal Protocol, and more directly impacted by the EU F-Gas Regulation and the U.S. AIM Act.

TSS 由兩種不同的產品組合組成。首先是冷媒，其次是泡沫、推進劑和其他物質，或稱為 FP&O。我們的冷媒產品組合涵蓋終端市場的熱管理解決方案，例如住宅、商業和工業應用的行動和固定空調。我們的 FP&O 產品組合涵蓋泡沫發泡劑和推進劑等終端市場，包括醫藥級。我們整體 TSS 業務的約 80% 集中在北美和歐洲、中東和非洲地區。我們的冷媒和 FP&O 產品組合中的許多產品都採用了低全球暖化潛勢值或 GWP 技術。最值得注意的是我們的 Opteon 品牌和 HP 152a 推進劑。這很重要，因為我們的 TSS 業務與《蒙特婁議定書》《基加利修正案》規定的監管轉型密切相關，並受到歐盟 F-Gas 法規和美國 AIM 法案的直接影響。

These regulatory actions are the catalysts driving the transition to low GWP solutions that is currently underway. Our refrigerants product portfolio is most directly impacted by the regulatory transitions, and it makes up about 80% of our TSS sales. In terms of markets, our low GWP Opteon products are growing in automotive applications initially through OEMs and then to the auto aftermarket using a pure Opteon YF solution. Our refrigerants product portfolio also provides an Opteon blend solution for our stationary air conditioning and commercial refrigeration applications. Opteon blends reflect a combination of our Opteon products and certain legacy refrigerants for new and retrofit applications. This product portfolio also includes legacy refrigerants. Although they are declining in our overall mix due to the regulatory-driven transition towards Opteon low GWP solutions.

這些監管行動是推動目前正在進行的向低 GWP 解決方案轉變的催化劑。我們的冷媒產品組合受監管轉變的影響最為直接，約占我們 TSS 銷售額的 80%。在市場方面，我們的低 GWP Opteon 產品首先透過 OEM 在汽車應用領域持續成長，然後透過純 Opteon YF 解決方案進入汽車售後市場。我們的冷媒產品組合也為我們的固定式空調和商用冷凍應用提供了 Opteon 混合解決方案。 Opteon 混合反映了我們的 Opteon 產品和某些傳統冷媒的組合，適用於新的和改造的應用。該產品組合還包括傳統冷媒。儘管由於監管驅動向 Opteon 低 GWP 解決方案的轉變，它們在我們的整體產品組合中正在下降。

On a trailing 12-month basis through the first quarter of 2024 our low GWP products make up approximately 80% of our overall refrigerant volume in EMEA and 30% of our refrigerant volumes in the U.S. This compares to 70% and 25%, respectively, on the same basis a year ago. We anticipate this mix will continue to shift as additional step-downs occur later in the decade. This is driven by the regulatory transitions taking place in key end markets in the U.S. and in the EU. And of course, our strong suite of patents protecting our Opteon solutions. We are supporting the continued regulatory transition in these regions through our investment in the expansion of our Corpus Christi site, which will provide a 40% increase in capacity for Opteon. I'm happy to share that this expansion is on plan to be completed during the fourth quarter of this year, and we will start up production in early 2025.

截至 2024 年第一季的過去 12 個月，我們的低 GWP 產品約占我們在歐洲、中東和非洲地區冷媒總產量的 80% 和美國冷媒產量的 30%。我們預計，隨著本世紀後期進一步的降息，這種組合將繼續改變。這是由美國和歐盟主要終端市場正在發生的監管轉型所推動的。當然，我們擁有強大的專利套件來保護我們的 Opteon 解決方案。我們透過投資擴大科珀斯克里斯蒂工廠來支持這些地區持續的監管轉型，這將使 Opteon 的產能提高 40%。我很高興地告訴大家，此次擴建計畫將於今年第四季完成，並將於 2025 年初開始生產。

We are taking other actions to realize growth opportunities in TSS outside of those being driven by regulation. For example, we announced the expansion of our production of Opteon low GWP foam in late 2026, continuing to secure our position in the attractive end markets that we serve. Another example we shared last year is around the development of our new specialty fluid for 2-phase immersion cooling. With anticipated commercialization in 2026, subject to regulatory approval, this is a game changer for how computing hardware will be cooled in the future. This is especially true given the trend shifting from CPU to high-powered GPU computing. The growth of data centers isn't going away and it is unsustainable without better and more efficient cooling solutions. Our 2-phase immersion cooling technology outperforms single-phase immersion cooling and direct to chip technologies with superior thermal efficiency to meet the higher powered computing needs of today and the future.

除了監管推動的機會之外，我們還在採取其他行動來實現 TSS 的成長機會。例如，我們宣布將於 2026 年底擴大 Opteon 低 GWP 泡棉的生產，繼續鞏固我們在所服務的具有吸引力的終端市場中的地位。我們去年分享的另一個例子是有關兩相浸入式冷卻新特種流體的開發。該技術預計將於 2026 年實現商業化，但需獲得監管部門的批准，這將徹底改變未來計算硬體的冷卻方式。鑑於從 CPU 轉向高效能 GPU 運算的趨勢，情況尤其如此。資料中心的成長不會停止，如果沒有更好、更有效率的冷卻解決方案，資料中心的成長是不可持續的。我們的兩相浸入式冷卻技術優於單相浸入式冷卻和直接晶片技術，具有卓越的熱效率，可滿足當前和未來更高功率的運算需求。

Let's talk first about how this solution works. It is Two-Phase and immersion because the solution efficiently cools the computer hardware in the fluid and not just the chips but all immerse components. It then transfers the energy by vaporizing a liquid to produce a gas that hits a cool condensing plate and returns to a fluid form. The evaporative cooling of our Two-Phase immersion Cooling liquid provides superior heat removal compared to single-phase chemistries where energy removal is limited by a liquid-phase heat transfer. The solution is low maintenance and requires a simpler infrastructure as Chillers or Evaporative Coolers are not required. Importantly, if the submerged hardware needs to be serviced or replaced, it requires little to no cleaning because the cooling fluid sheet off the equipment as it's lifted out.

我們首先來討論一下這個解決方案是如何運作的。它是雙相和浸泡的，因為該解決方案有效地冷卻了流體中的電腦硬件，不僅僅是晶片，而且是所有浸泡組件。然後，它透過蒸發液體產生氣體來傳輸能量，氣體撞擊冷冷凝板並返回到流體形式。與單相化學（其中能量去除受到液相熱傳遞的限制）相比，我們的雙相浸入式冷卻液的蒸發冷卻提供了卓越的散熱效果。此解決方案維護成本低，並且需要更簡單的基礎設施，因為不需要冷水機組或蒸發冷卻器。重要的是，如果浸沒的硬體需要維修或更換，則幾乎不需要清潔，因為冷卻液在設備被提起時就會從設備上脫落。

Lastly, our immersion cooling solutions does not corrode hardware, which was a key concern of customers with alternative liquid cooling products. You haven't seen the technology in action have a look at the brief video on our investor website. Now let's look at some of the significant benefits of the solution. It allows the reduction of required footprint for data center facilities by an estimated 60%. It delivers cooling energy savings of up to 90% and it is projected to nearly eliminate water usage. These benefits are groundbreaking for the data center industry when compared against current air-cooled systems. Some of you have asked about whether the designation of these products as PFAS is an issue. And the answer is, it shouldn't be. I say this because of the following: one, the environmental concerns some have raised over Two-Phase Immersion Cooling can be mitigated. And let's not forget, the solution itself brings significant environmental benefits in terms of energy and water usage; two, these systems are designed to be closed loop, sealed systems and the materials used must be manufactured under the highest standards. Not only do we support rigorous environmental testing based on science-based regulation, but we also support manufacturing standards through our responsible manufacturing commitments; three, let's be clear, the cooling alternatives used today, including air cooled data centers or newer liquid cooling technologies, such as direct to chip or single-phase immersion cooling use floriated chemistries.

最後，我們的浸入式冷卻解決方案不會腐蝕硬件，這是客戶使用替代液體冷卻產品的關鍵關注點。如果您還沒有看到該技術的實際應用，請觀看我們投資者網站上的簡短影片。現在讓我們來看看該解決方案的一些顯著優勢。它可以使資料中心設施所需的佔地面積減少約 60%。它可節省高達 90% 的冷卻能源，並且預計幾乎可消除用水量。與目前的風冷系統相比，這些優勢對於資料中心產業來說是突破性的。有些人詢問將這些產品指定為 PFAS 是否有問題。答案是，不應該。我這樣說是因為以下幾點：第一，有些人對兩相浸入式冷卻提出的環境問題可以得到緩解。而且我們不要忘記，該解決方案本身在能源和水資源使用方面帶來了顯著的環境效益；二，這些系統設計為閉環、密封系統，所用材料必須依照最高標準製造。我們不僅支持基於科學法規的嚴格環境測試，而且還透過負責任的製造承諾來支持製造標準；第三，讓我們明確一點，當今使用的冷卻替代方案，包括風冷資料中心或較新的液體冷卻技術，例如直接晶片或單相浸入式冷卻使用花化化學物質。

Regulatory classifications of these chemistries will differ by country and region. The bottom line is this, we believe our Two-Phase Immersion Cooling will be unmatched as a sustainable solution that addresses some of the major technological barriers to the next-generation computing and the data centers needed to enable it. We're currently sampling this technology with key partners across the value chain, including hyperscalers, server and chip manufacturers, and we are seeing strong interest in our solutions and its benefits.

這些化學物質的監管分類因國家和地區而異。最重要的是，我們相信我們的兩相浸入式冷卻將成為無與倫比的可持續解決方案，解決下一代運算和實現下一代運算所需的資料中心的一些主要技術障礙。我們目前正在與價值鏈上的各大關鍵合作夥伴一起對這項技術進行試用，包括超大規模提供商、伺服器和晶片製造商，我們發現他們對我們的解決方案及其優勢表現出了濃厚的興趣。

It's innovations like immersion cooling that provide us with the opportunity to build upon our leadership position in the industry and support our mid- to high single-digit growth potential through the end of the decade with adjusted EBITDA margins averaging 30% or greater. In closing, our focus continues to be on the 2 clear priorities that I shared on our last call: one, take cost out in APM building on what we have done in TT as well as our functional and corporate overheads; two, invest in our businesses where we have significant opportunities to grow. Both of these priorities are supported by ensuring we are living our values each and every day. Lovely, we are now ready for questions.

浸入式冷卻等創新為我們提供了鞏固行業領導地位的機會，並支持我們在本世紀末實現中高個位數的成長潛力，調整後的 EBITDA 利潤率平均達到 30% 或更高。最後，我們的重點仍然是上次電話會議中我所分享的兩個明確的優先事項：第一，在我們在 TT 以及我們的職能和公司管理費用的基礎上，降低 APM 成本；二、投資我們有巨大成長機會的業務。透過確保我們每天都實踐我們的價值觀，我們可以實現這兩個優先事項。親愛的，我們現在可以回答問題了。

(Operator Instructions). Our first question comes from Duffy Fischer from Goldman Sachs.

（操作員指令）。我們的第一個問題來自高盛的達菲·菲舍爾。

First question, we're getting a lot of incoming just around the guide. So first, the guide you gave last quarter basically 2 working days left in the quarter, and you walked us to $160 million, came out at $193 million. So just how can the gap be that big? Are you confident in like your reporting systems that you're getting the right numbers and timely and then second on that, the guide for this quarter, what would you call kind of onetime in there as we use this quarter's guide as a bridge to move forward? I think about things like the internal review cost, is that naturally go away as the year progresses? Are there anything else that gets meaningfully better that we can identify today?

第一個問題，我們收到了很多有關指南的資訊。首先，您在上個季度給出的指引基本上是該季度還剩 2 個工作日，而您給出的指引是 1.6 億美元，實際上是 1.93 億美元。那麼差距怎麼會這麼大呢？您是否對您的報告系統有信心，相信您能及時獲得正確的數字？我認為諸如內部審查成本之類的費用會隨著時間的推移自然消失嗎？還有什麼其他事情是我們今天能夠發現並有意義的進步嗎？

So I'm going to start it off and relative to the difference in the EBITDA versus our -- what we discussed at the last earnings call. There's really 2 primary reasons. One of them is related to our -- the shift in our ore cost. So -- and the second one is related to changes in the corporate costs, which I'll have Matt talk about. But just first, talking about the shift in ore. One of the things to highlight about our competitive advantage and how we run our circuit is we have ability to run a very, very wide variety of ores and we can change that whatever we're running really day to day. And you can look at a given plant site and you could say, you could be running 7 different ores in a day, different blends and we changed that based on what our production needs are, what plants are running. So it's actually pretty complicated. But I'm going to turn it over to Matt to talk about what is the process for understanding these cause and why that was a change versus what we shared with you in the last call. And then he can also talk about the corporate charges and the guide to the onetime.

因此，我將首先討論 EBITDA 與我們在上次財報電話會議上討論的內容之間的差異。其實有兩個主要原因。其中之一與我們的礦石成本的變化有關。所以 — — 第二個問題與公司成本的變化有關，我將讓馬特來談談這件事。但首先，我們來談談礦石的變化。關於我們的競爭優勢以及我們如何運作我們的電路，需要強調的一點是，我們有能力運行各種各樣的礦石，而且我們可以改變我們每天運行的任何礦石。你可以查看某個工廠現場，可以說你一天可以運行 7 種不同的礦石、不同的混合物，我們根據生產需求和工廠的運作來改變這一點。所以這其實相當複雜。但我將把話題交給馬特，讓他談談理解這些原因的過程，以及為什麼與我們上次通話中與您分享的內容相比發生了變化。然後他還可以談談公司收費和一次性指南。

Yes. So I think on the ore cost, right, so as Denise said, right, the business is making supply chain optimization decisions all the time, right? And so as we think about the books, we closed our books monthly and so we typically get actual cost of manufacturing data in the early part of the subsequent month for the month that we're reporting on. So for March, obviously, early April is when we started to get that actual data. We closed our plants in SAP and run the material ledgers on that monthly cycle. We don't close more frequently in that. And so our ERP, unfortunately, doesn't give us that sort of near real-time visibility to some of the costs that are coming through in some of those supply chain decisions.

是的。所以我認為就礦石成本而言，正如丹尼斯所說，企業一直在進行供應鏈優化決策，對吧？因此，當我們考慮賬簿時，我們每月都會結帳，因此我們通常會在報告月份的下個月初獲得實際製造成本數據。因此對於三月來說，顯然四月初是我們開始取得實際數據的時候。我們在 SAP 中關閉了工廠，並按照月週期運行物料分類帳。我們不會更頻繁地關閉那裡。因此，不幸的是，我們的 ERP 不能讓我們近乎即時地了解某些供應鏈決策中產生的成本。

So for favorability coming through in the latter part of the quarter and in March, right, it was really April that we saw the full extent to that. Otherwise, we're operating with some estimates and given some of the variables that those are quite complex estimations to walk through. On the corporate side, it was really a couple of things, right? The internal review, as I mentioned, those costs are around $14 million in the quarter. We expect those to continue like that in the second quarter. And then we had some favorability in environmental and the incentive compensation in Q1 that we don't expect to be the same in the second quarter.

因此，對於本季後半段和 3 月的好感度而言，實際上直到 4 月我們才真正看到了其全部程度。否則，我們會根據一些估計值進行操作，並給出一些變量，這些變量是相當複雜的估計值。從公司方面來看，確實有幾件事，對嗎？正如我所提到的，內部審查顯示本季這些成本約為 1400 萬美元。我們預計第二季度這種情況將持續下去。然後，我們對第一季的環境和激勵薪酬有一些有利因素，但我們預計第二季的情況不會相同。

Great. And then maybe as a follow-up, in TT, I think last year, the last comment, I remember is you were running about 70% on contractual business. And you would think with PPI, that number -- those contractual contracts would be up in price this year, price for you guys was down 7%. So is there a meaningful shift in the amount of your sales that are on contract this year versus last year? And is the implication that the noncontractual stuff is down, if you just do the math like almost 20% to make up for what on the contractual side should be flattish to up.

偉大的。然後也許作為後續，在 TT，我想去年，我記得的最後一條評論是您在合約業務上投入了大約 70%。你可能會認為，有了 PPI，那個數字——那些合約的價格今年會上漲，而你們的價格卻下降了 7%。那麼，與去年相比，今年的合約銷售量有顯著變化嗎？這是否意味著非合約部分下降了，如果你算一下就會發現差不多有 20% 可以彌補合約部分持平或上升的部分。

Thanks for the question. Relative to TT and pricing, you're correct that approximately 70% of our business is contracted. The majority is through PPI and there is a lag in our contracts when that change is made in pricing. We also have a portion of that contracted business, which is negotiated. And those prices can change quarterly every 6 months. So there is a blend there as well as we have our more market-exposed channels and distribution and in our Flex channel. But the one thing I want to kind of draw your attention to is that we just can't look at deltas in pricing I think I'd just encourage you to look at absolute level of pricing. And I think what you'll see is that we really are market leaders when it comes to pricing. And we feel really good about how we have managed price through this down cycle.

謝謝你的提問。關於 TT 和定價，您說得對，我們的大約 70% 的業務是簽訂合約的。大多數是透過 PPI 來實現的，當價格發生變化時，我們的合約會出現滯後。我們還有一部分合約業務，是透過談判獲得的。這些價格每六個月會按季度變動一次。因此，這是一種混合，我們擁有更多面向市場的通路和分銷，以及我們的 Flex 通路。但有一件事我想提請你注意，那就是我們不能只看價格的差異，我想我只是鼓勵你看絕對的價格水平。我想您會發現，在定價方面我們確實是市場領導者。我們對於自己在此次下跌週期中的價格管理感到非常滿意。

Our next question comes from John McNulty from BMO Capital Markets.

下一個問題來自 BMO 資本市場的 John McNulty。

So a lot of moving parts in TSS this year with some of the HFC kind of destocking and refrigerants and you've got this big expansion project in the back half of the year as well. I guess can you help us to think about the trajectory of TSS and its earnings as we progress through the year? And is it going to be the usual seasonality in terms of how kind of ebbs and flows up in the middle and then back down in the back half? Is it a little bit different this time, I guess, can you help us to think about what would be kind of -- what to expect on it this year versus kind of normal.

因此，今年 TSS 中有很多活動部件，包括一些 HFC 類去庫存和冷媒，而且今年下半年還有這個大型擴建項目。我想您能幫助我們思考一下 TSS 及其收益在今年的發展軌跡嗎？這是否會像通常的季節性一樣，在中期出現漲落，在後半段出現回落？我想，這次是不是有些不同，您能幫我們思考一下，與平常相比，今年的預期會是怎麼樣的嗎？

I think there's a couple of things that I can talk about. We're not going to give a guide for the full year. But I will say what we see for the year is we do see high levels of HFC inventory but we do see also the growth, as we talked about before, mid- to high single digits through the end of the decade with the regulatory, the technology transition, we see probably for the stationary side of the business more towards the mid-single digits on that growth. So what I would say is just kind of stick to our long-term trajectory. This is a super critical and valuable portfolio for us, and we're investing for the future, we see over the long term continued growth, the decade of growth through the rest of the decade and over the 30% margins to be -- to persist.

我想有幾件事我可以談。我們不會提供全年的指南。但我要說的是，我們今年看到的是 HFC 庫存水準確實很高，但我們也看到了成長，正如我們之前談到的，到本世紀末，隨著監管、技術轉型，我們的固定業務方面可能會出現中高個位數的成長。所以我想說的是，堅持我們的長期發展軌跡。對我們來說，這是一個非常關鍵且有價值的投資組合，我們投資於未來，我們看到長期持續成長，未來十年的成長以及 30% 以上的利潤率——將持續下去。

Okay. So just so I'm clear, I expect that you should be able to hit the middle or the lower end, that mid-single-digit target for even this year in terms of growth. Is that right? Did I understand that right?

好的。所以我要說清楚，我預計你們今年的成長速度能夠達到中等或偏低水平，也就是中等個位數的目標。是嗎？我理解得對嗎？

Yes, you understood that right.

是的，你理解得對。

Okay. Perfect. And then just the follow-up would be on the TT business. So obviously, the low-cost ores and then, I guess, high cost in 2Q make things a little bit lumpier than, I guess, we've seen in the past, and it seems to have kind of eaten up at least in 2Q, a little bit of the operating leverage in this business. I guess, how should we think about that going forward? Is it going to be a more continual kind of lumpy period? Or is this just kind of one piece that we work through? And then back half of the year, you're kind of back to lower-cost ores, lower cost of inventory that you're working through and improve profitability. I guess, how should we be thinking about that?

好的。完美的。接下來的跟進就是 TT 業務。因此顯然，低成本的礦石，加上第二季度的高成本，使得情況比我們過去看到的更加不穩定，而且至少在第二季度，它似乎已經吞噬了該業務的一些經營槓桿。我想，我們接下來該如何考慮這個問題呢？這是否會成為一種更持續的不穩定時期？或者這只是我們要解決的問題？然後回到半年前，你就會回到成本較低的礦石，較低的庫存成本，你正在努力提高獲利能力。我想，我們應該怎麼思考這個問題呢？

I think I'll go back to what I had said earlier, John, is that a way to think about it is we make changes every day really on our ore blends and what production we're running, I think it really evolves as the market evolves for the year, and again, how we run our plan. So it's a key -- I really can't give you any more clarity around that for the rest of the year other than we're going to make the best decisions as we run our plants and what orders we use as we run our facilities.

我想我會回到我之前說過的話，約翰，思考這個問題的一種方式是，我們每天都會對我們的礦石混合物和正在進行的生產進行改變，我認為它會隨著市場一年的發展而發展，以及我們如何執行我們的計劃。所以這是關鍵——在今年剩餘時間內，我真的無法給你更多關於這一點的明確信息，除了我們在運營工廠時以及在運營設施時使用什麼訂單時做出最佳決策。

Our next question comes from Josh Spector from UBS Financial.

我們的下一個問題來自瑞銀金融的 Josh Spector。

I wonder if you could just talk about TiO2. I know you don't have a full year guide here, but as you ramp your capacity, can you bring on more volumes into 3Q?

我想知道您是否可以談談 TiO2。我知道您沒有全年的指南，但是隨著產能的提升，您能在第三季帶來更多的銷售嗎？

Josh, thanks for the question. Yes, I mean, we have the capability to bring on more volume, for sure. I'm not sure, Josh, is there a follow-up question to that?

喬希，謝謝你的提問。是的，我的意思是，我們肯定有能力帶來更多的銷售。我不確定，喬希，還有其他問題嗎？

Sorry. Yes. Thanks for waiting there for a minute. I guess the other piece I'd ask to follow-up is just as you think about TSS margins longer term here, you're talking about growth in 2 phases in other markets. What about another Corpus expansion, since it seems like that margin delta versus your JV is quite large. Should we expect an investment there? And what would be the time line?

對不起。是的。感謝您的等候。我想我要跟進的另一個問題是，正如您在這裡考慮長期的 TSS 利潤率一樣，您正在談論其他市場的兩個階段的成長。那麼 Corpus 的另一次擴張怎麼樣呢，因為看起來與您的 JV 相比，利潤率差距相當大。我們應該期待在那裡進行投資嗎？時間線是怎樣的？

I would say when we look at expansions, we're always trying to evaluate what's the right decision whether we build ourselves or we build with a partner. We've not yet made any decision on future additional capacity. We're really focused on this 40% expansion. And then we'll -- as things progress, and we make decisions, we certainly will share those.

我想說，當我們考慮擴張時，我們總是試圖評估什麼是正確的決定，無論是我們自己建造還是與合作夥伴一起建造。我們尚未對未來的額外產能做出任何決定。我們非常關注這 40% 的擴張。然後，隨著事情的進展，我們做出決定，當然會分享這些決定。

Our next question comes from Arun Viswanathan from RBC.

下一個問題來自 RBC 的 Arun Viswanathan。

This is Adam on for Arun. If we were to look out the curve a little bit in TSS assuming a reasonable market recovery by the time some of those 2-phase products are commercialized, what do you think the earnings contribution could be? Or that is to say, what do you think potentially mid-cycle EBITDA could be for TSS a couple of years out.

這是亞當 (Adam) 代替阿倫 (Arun)。如果我們稍微觀察一下 TSS 的曲線，假設當其中一些兩相產品商業化時市場出現合理的復甦，您認為獲利貢獻會是多少？或者也就是說，您認為幾年後 TSS 的中期 EBITDA 可能是多少。

We're -- I would say we're committed to the long-term trajectory. The the mid- to high single-digit growth through the end of the decade and the greater than 30% margin. This is a disruptive technology, and we're going to have new capacity that comes on in 2026. So it's difficult to say. This is a large market. We're talking about a $3 billion TAM. It's a pretty diverse ecosystem. There's going to be lots of technologies. Our technology, we believe, has the best value proposition. So we believe we're going to be a very sizable participant, but it really depends on how quickly it evolves, again, we're going to have commercial capacity in 2026. A little bit hard to project that going out much farther Adam.

我想說我們致力於長期發展。到本世紀末，我們的成長率將達到中高個位數，利潤率將超過 30%。這是一項顛覆性的技術，我們將在 2026 年推出新的產能。這是一個很大的市場。我們談論的是 30 億美元的 TAM。這是一個相當多樣化的生態系統。將會有大量的技術出現。我們相信，我們的技術具有最佳的價值主張。因此，我們相信我們將成為一個非常可觀的參與者，但這實際上取決於它發展的速度，再說一次，我們將在 2026 年擁有商業能力。

Great. And maybe more short term, I know you guys have a big outflow some of the restricted cash coming this quarter. I think it was something on the tune of $600 million. Is that most of the remaining outflows for this year? And how much of that restricted cash could we expect any one baseline level going forward?

偉大的。也許更多的是短期的，我知道你們本季有一些受限的現金流出。我認為金額大約是 6 億美元。這是今年剩餘的大部分流出量嗎？那麼，我們預計未來這些受限現金的基準水準可以達到多少呢？

Yes, Adam, thanks for the question. So yes, we do expect that restricted -- the restricted cap, obviously, the fund was funded in 2023, right? So from an accounting perspective, it's sitting there as restricted cash. Following the final judgments, you'll see that flow through the cash flow statement here in the second quarter. As we look out, right, we will continue to do our fundings to the MOU fund under the terms of the MOU with the other parties. And then from an overall cash perspective, as I indicated, we think we'll be sort of flattish to the midpoint of the year and then we expect a source of cash rather as we go through the second half of the year.

是的，亞當，謝謝你的提問。所以是的，我們確實預計該基金的上限是受限制的，顯然，該基金是在 2023 年獲得資助的，對嗎？因此從會計角度來看，它是受限現金。根據最終判斷，您將在第二季的現金流量表中看到該流量。正如我們所看到的，我們將根據與其他方簽署的諒解備忘錄的條款，繼續向諒解備忘錄基金提供資金。然後從整體現金角度來看，正如我指出的那樣，我們認為到今年中期，現金狀況將趨於平穩，然後我們預計在下半年會出現現金來源。

Our next question comes from Mike Leithead from Barclays.

下一個問題來自巴克萊銀行的 Mike Leithead。

Mike, do you have a question?

麥克，你有什麼問題嗎？

You will be skipping. Our next question comes from Hassan Ahmed from Alembic Global Advisors.

您將要逃課。下一個問題來自 Alembic Global Advisors 的 Hassan Ahmed。

Question on TT. I know there are a bunch of moving parts and uncertainty and the like. With regards to the European Commission, investigation on antidumping. But could you just broadly talk about potentially what the opportunity could be if those antidumping measures are indeed go through in Europe.

關於 TT 的問題。我知道其中存在著許多活動部件和不確定性等等。關於歐盟委員會的反傾銷調查。但您能否大致談談如果這些反傾銷措施確實在歐洲實施，可能帶來什麼機會？

So first of all, I guess what I want to say is we are really focused in TT on controlling what we can control and working towards taking a long-term view of being one of the lowest cost producers. We really -- you can see in our results, the benefit of our TT Transformation Plan, and that work continues. I think that depending on what happens, there could be some share shift. Again, it might be a transitory depending on what happens with the antidumping case. But again, we're just focused on what we can control, making sure that we can compete in any environment and being low cost as well as being phenomenal partners with our customers. We need to be reliable suppliers and then have true partnership.

所以首先，我想說的是，我們真正關注的是 TT 控制我們能夠控制的事情，並努力從長遠角度成為成本最低的生產商之一。我們確實——您可以從我們的成果中看到 TT 轉型計劃帶來的好處，而且這項工作仍在繼續。我認為，根據發生的情況，可能會出現一些份額轉移。再一次，這可能是暫時的，取決於反傾銷案的進展。但同樣，我們只專注於我們能夠控制的事情，確保我們能夠在任何環境中競爭、保持低成本，並成為客戶的卓越合作夥伴。我們需要成為可靠的供應商，然後建立真正的合作關係。

Fair enough. And a question around the guidance. I'm obviously cognizant of the fact that you're not giving full year guidance. But you guys did $193 million in Q1 EBITDA and you're guiding to around $222 million in Q2. Obviously, there are a bunch of moving thoughts, seasonality in terms of the headwind, but tailwinds wise, maybe an economic recovery, cost cutting and the like. But if I were to just assume for a second that there really is no recovery, and you guys really don't benefit that much from cost cuts. And I just straight line the $222 million for Q3 and Q4, I get to like roughly an EBITDA of $860 million for the full year. Clearly, there is going to be some sort of recovery. Clearly, you guys are going to benefit from cost cuts and the like. So is it just fair to assume that at the very least, you'll do $900 million in EBITDA in '24?

很公平。還有一個有關指導的問題。我顯然知道你沒有提供全年指導。但你們第一季的 EBITDA 為 1.93 億美元，預計第二季將達到 2.22 億美元左右。顯然，有許多令人動容的想法，從逆風角度來說有季節性，但從順風角度來說，可能是經濟復甦、成本削減等。但如果我假設真的沒有復甦，那麼你們實際上不會從削減成本中獲得太多好處。我只是直接把第三季和第四季的 2.22 億美元算進去，就得出全年的 EBITDA 大約是 8.6 億美元。顯然，將會出現某種形式的復甦。顯然，你們將從削減成本等方面受益。那麼，我們可以公平地假設，到 2024 年，您的 EBITDA 至少會達到 9 億美元嗎？

As I said, I'm not going to give guidance for the full year, but I think going back to your point, I mean, certainly, we're going to see benefits to our cost cuts. We've already seen that dramatically in TT and we're going to continue that focus. And again, we're going to control what we can control the market is going to do what the market is going to do. We are -- in every one of our business, we're leading players in those markets. Whatever happens in the market, we'll participate in. We'll do the right -- make the right business decisions and continue to drive our productivity.

正如我所說，我不會給出全年的指導，但我想回到你的觀點，我的意思是，我們肯定會看到削減成本帶來的好處。我們已在 TT 中看到了這一點，我們將繼續關注這一點。再說一次，我們將控制我們能夠控制的市場，做市場將要做的事情。在我們的每項業務中，我們都是這些市場的領導者。無論市場發生什麼，我們都會參與。

Our next question comes from Mike Leithead from Barclays.

下一個問題來自巴克萊銀行的 Mike Leithead。

Team, can you hear me okay? Sorry about that earlier.

團隊，你們聽得到我說話嗎？我之前對此深感抱歉。

Yes, we can hear you.

是的，我們能聽到你的聲音。

Sorry about that technology issue. I wanted to maybe reask Hassan's question a bit differently or succinctly. Should 2Q be the peak of net leverage? Or how should we think about your leverage profile as we work through the second half?

抱歉，出現技術問題。我想以稍微不同或簡潔的方式重新提出哈桑的問題。第二季應是淨槓桿率高峰嗎？或者，在下半年，我們該如何考慮你的槓桿狀況？

Yes. No. I think similar to the question earlier, right, I think we're at 3.7% now at the end of the first quarter. We think cash will be flattish as we approach the midpoint in the year. And then normal seasonality will kick in at that point and we expect to see a source of cash through the second half. So we think it will trend back more favorably in the second half. And then over the longer term, we aim to be around 3x that's our goal.

是的。不。我們認為，隨著年中臨近，現金狀況將會持平。然後正常的季節性就會開始發揮作用，我們預計下半年會看到現金來源。因此我們認為下半年趨勢將會更加良好。從長遠來看，我們的目標是將這一數字提高到 3 倍左右。

Okay. Is that fair to assume we'll probably finish the year above 3x, just given where earnings and cash flow are looking today?

好的。考慮到今天的獲利和現金流狀況，我們可以合理地假設今年的獲利可能會超過 3 倍嗎？

Yes. We're not giving that full guide for the year, but it will be somewhere between 3 and where we are now.

是的。我們不會提供今年的完整指南，但它將介於 3 和現在的水平之間。

We have our next question from an analyst from Morgan Stanley.

我們的下一個問題來自摩根士丹利的一位分析師。

This is Turner Hinrichs on for Vincent Andrews. I'm wondering if you could provide a little bit more color on Chinese TiO2 exports and what you're seeing in the region in terms of local production and demand.

這是特納辛里奇斯 (Turner Hinrichs) 替換文森特安德魯斯 (Vincent Andrews)。我想知道您是否可以提供一些有關中國鈦白粉出口的詳細信息，以及您所看到的該地區的當地生產和需求情況。

I think the export data is pretty visible to the market. Year-over-year, there's a 10% increase quarter-over-quarter. It's lumpy. And certainly, you can think about the EU dumping case as some of the driver for that increase here in March. But again, just going back to big picture, we're leaders in this market. We're focusing on what we control, driving to low-cost position and making sure we can participate in the long run. Again, just leaning into -- we have very, very strong customer relationships. So yes, we we're driving to low cost, so we can participate in markets, but there's more to serving customers in around the relationships and supply reliability and quality where we really are second to none.

我認為出口數據對市場來說是相當明顯的。與去年同期相比，季度環比成長了 10%。它很粗糙。當然，你可以把歐盟傾銷案視為三月價格上漲的一些原因。但讓我們再次回顧大局，我們是這個市場的領導者。我們專注於我們能控制的領域，努力實現低成本，確保我們能夠長期參與。再說一遍，我們與客戶的關係非常非常牢固。所以是的，我們正在努力降低成本，以便我們能夠參與市場，但在為客戶提供服務方面，我們還有更多要做，在關係和供應可靠性和品質方面，我們確實是首屈一指的。

Great. That makes a lot of sense. Would you mind providing a little bit additional color on U.S. export versus domestic demand and the potential for tailwinds from restocking?

偉大的。這很有道理。您能否就美國出口與國內需求以及補貨帶來的順風潛力提供一些額外的資訊？

Turner, can you ask that question again?

特納，你能再問一次這個問題嗎？

Yes. No problem. Sorry if there's a static on my line or anything. Would you mind providing a little additional color on U.S. export versus domestic demand and the potential for any tailwinds from restocking?

是的。沒問題。如果我的線路上有靜電幹擾或其他什麼的話，我很抱歉。您能否就美國出口與國內需求的關係，以及補貨可能帶來的利多提供一些額外的資訊？

Yes. I mean, I guess what I would just say is we're seeing the restocking. That's really what we're seeing going into the second quarter. Again, we haven't seen any market catalysts, whether you're talking about interest rates or residential home building, things like that. So we think that the volume that we're seeing is relative to restocking.

是的。我的意思是，我想我只想說的是，我們看到了補貨。這正是我們在第二季看到的情況。再說了，我們還沒有看到任何市場催化劑，無論是利率還是住宅建設之類的。因此我們認為我們看到的數量與補貨有關。

We have reached the end of our question-and-answer session. Thank you for joining The Chemours First Quarter 2024 Results Conference Call. You may now disconnect.

我們的問答環節已經結束。感謝您參加科慕 2024 年第一季業績電話會議。您現在可以斷開連線。