PLYMOUTH, Minn., April 30, 2015 /PRNewswire/ -- The Mosaic
Company (NYSE: MOS) today reported first quarter 2015 net earnings
of $295 million, compared to
$218 million in the first quarter of
2014. Earnings per diluted share were $0.80 in the quarter compared to $0.54 last year. Notable items positively
impacted current quarter earnings per share by $0.10. Mosaic's net sales in the first quarter of
2015 were $2.1 billion, up from
$2.0 billion last year. Operating
earnings during the quarter were $319
million, up from $267 million
a year ago, driven by higher phosphate and potash prices, higher
phosphate sales volumes and lower operating costs in the Potash
segment, partially offset by higher phosphate raw material costs,
lower potash sales volumes and an increase in Canadian resource
taxes and royalties.
"Our first quarter results highlight our strategic progress,"
said Jim Prokopanko, President and
Chief Executive Officer. "The last twelve months have been
transformational for Mosaic. We grew and rebalanced our business
portfolio, optimized our balance sheet, and worked to assure Mosaic
remains a low-cost producer. We are beginning to realize the
benefits of these moves. This quarter we produced more tonnes of
finished product than last year, lowered controllable operating
costs, and delivered higher earnings per share."
Cash flow provided by operating activities in the first quarter
of 2015 was $656 million compared to
$627 million in the prior year.
Capital expenditures totaled $230
million in the quarter. Mosaic's total cash and cash
equivalents were $2.5 billion and
long-term debt was $3.8 billion as of
March 31, 2015.
"We are pleased with our operating performance this quarter,"
said Rich Mack, Executive Vice
President and Chief Financial Officer. "Our results demonstrate
operational excellence and progress on cost savings initiatives
across our segments and corporate functions. During the quarter,
the late and compressed North American spring and delayed signing
of the China potash contract
impacted timing of potash sales volumes and increased near-term
uncertainty. But as we look ahead, our full year sales volumes
expectations remain unchanged."
Business Highlights – First Quarter 2015
- The Company's progress against strategic priorities is
positively impacting financial results. During the first quarter
Mosaic delivered:
- Near record low potash cash costs of production of $86 per tonne, including $17 per tonne of brine management expenses.
- Significantly higher production volumes in both Potash and
Phosphates.
- In Selling, General and Administrative expenses, cost savings
initiatives offset higher expenses from an expanded business
footprint.
- Integration of Archer Daniels Midland's fertilizer distribution
business in Brazil and
Paraguay is progressing as
planned.
- Canpotex finalized potash supply contracts for 2015 with all of
its major customers in China with
committed volumes higher than shipments under last year's
contract.
- Mosaic was named to Corporate Responsibility Magazine's 100
Best Corporate Citizens (2015) list for the sixth year in a
row.
Phosphates
Phosphates
Results
|
1Q 2015
Actual
|
1Q 2015
Guidance
|
Average DAP Selling
Price
|
$458
|
$450 to
$460
|
Sales
Volume
|
2.3 million
tonnes
|
2.1 to 2.3 million
tonnes
|
Phosphate
Production
|
79% of operational
capacity
|
80-85% of operational
capacity
|
"Our industry-leading Phosphates business is positioned well for
improving industry fundamentals in the coming years," Prokopanko
said. "During the quarter, we continued to operate at reduced rates
as a result of an earlier than planned turnaround. Lower production
did not impact sales given the delayed North American spring
application season. As we look ahead, strong global demand and
lower raw material costs bode well for our Phosphates
business."
Net sales in the Phosphates segment were $1.2 billion for the first quarter, up from
$959 million last year, driven by
higher sales volumes and higher finished product prices. Gross
margin was $222 million, or 19
percent of net sales, compared to $200
million, or 21 percent of net sales, for the same period a
year ago. The year-over-year change in gross margin rate primarily
reflects higher ammonia and sulfur costs, partially offset by
higher finished product selling prices and lower phosphate rock
costs. Operating earnings were $190
million, up from $146 million
in the same quarter last year.
The first quarter average DAP selling price, FOB plant, was
$458 per tonne, compared to
$413 per tonne a year ago. Phosphates
segment total sales volumes were 2.3 million tonnes, up from 2.1
million tonnes last year.
Mosaic's North American finished phosphate production was 2.3
million tonnes, or 79 percent of operational capacity, compared to
2.0 million tonnes, or 79 percent a year ago.
Potash
Potash
Results
|
1Q 2015
Actual
|
1Q 2015
Guidance
|
Average MOP Selling
Price
|
$288
|
$270 to
$295
|
Sales
Volume
|
2.0 million
tonnes
|
2.0 to 2.3 million
tonnes
|
Potash
Production
|
93% of operational
capacity
|
85-90% of operational
capacity
|
"Our Potash business delivered outstanding operating results,
with near-record production volumes and one of the lowest quarterly
cash costs per tonne in Mosaic's history," Prokopanko said. "Good
demand highlighted by the recent Canpotex contract with
China, low pipeline inventories
and significantly improved operating costs lead to a positive
outlook for our Potash business this year. Near-term, seasonal
uncertainty during this time of year has been exacerbated by the
delayed and compressed North American spring fertilizer
applications. Longer term, Mosaic is well positioned for improving
industry fundamentals, with expanded and focused Canadian
operations securing our position as one of world's largest, most
efficient producers."
Net sales in the Potash segment totaled $653 million for the first quarter, down from
$733 million last year, driven by
lower sales volumes as a result of timing of export sales,
partially offset by a higher average realized price. Gross margin
was $242 million, or 37 percent of
net sales, compared to $216 million,
or 29 percent of net sales a year ago. The year-over-year increase
in gross margin rate was driven by higher realized prices combined
with lower costs of production as a result of cost savings
initiatives, a higher operating rate and a weaker Canadian dollar,
partially offset by higher Canadian resource taxes and
royalties.
The first quarter average MOP selling price, FOB plant, was
$288 per tonne, up from $267 per tonne a year ago. The Potash segment's
total sales volumes for the first quarter were 2.0 million tonnes,
compared to 2.4 million tonnes a year ago.
Potash production was 2.5 million tonnes, or 93 percent of
operational capacity, up from 1.9 million tonnes, or 70 percent of
operational capacity a year ago, ahead of strong anticipated
demand.
International Distribution (ID)
ID Results
|
1Q 2015
Actual
|
1Q 2015
Guidance
|
Sales
Volume
|
1.0 million
tonnes
|
0.85 to 0.95 million
tonnes
|
Gross Margin per
Tonne
|
$21 per
tonne
|
$24 to $27 per
tonne
|
"We are excited about the addition of the former ADM fertilizer
business in Brazil and
Paraguay," Prokopanko said. "We
purchased high quality assets, acquired great talent and expanded
our capacity in key locations. Integration is on track and we
expect the business to accelerate through 2015."
Net sales in the International Distribution segment were
$439 million for the first quarter,
up from $393 million last year,
driven by higher sales volumes and higher average selling prices.
Gross margin was $21 million, or 5
percent of net sales, compared to $22
million, or 6 percent of net sales, for the same period a
year ago. The year-over-year change in gross margin rate primarily
reflects higher mix of nitrogen sales during the current quarter.
Operating earnings were $3 million,
down from $8 million in the same
quarter last year.
The first quarter average selling price, FOB destination, was
$444 per tonne, compared to
$438 per tonne a year ago.
International Distribution segment total sales volumes were 1.0
million tonnes, up from 0.9 million tonnes last year.
Other
SG&A expenses were $100
million for the first quarter, down from $120 million last year, the decline was driven by
notable items in last year's period. Cost savings initiatives
offset higher expenses from an expanded business footprint.
The effective tax rate in the quarter was nine percent. The
provision for income taxes included tax benefits of $28 million related to resolution of certain tax
matters and a reduction in tax rate related to one of our equity
method investments. Excluding these tax benefits, the effective tax
rate in the quarter was approximately 18 percent and is expected to
remain in the upper teens, excluding discrete items, for the
remainder of 2015 before reverting to the low 20 percent range in
2016.
Financial Guidance
"We have invested for growth, and we are growing. We are seeing
the benefits of the many strategic initiatives we completed last
year," Prokopanko said. "We continue to watch grain and oilseed
prices, but we are optimistic about Mosaic's future and our ability
to generate attractive returns for our shareholders."
Total sales volumes for the Phosphates segment are expected to
range from 2.3 to 2.7 million tonnes for the second quarter of
2015, compared to 2.6 million tonnes last year. Mosaic's realized
DAP price, FOB plant, is estimated to range from $425 to $450 per tonne for the second quarter of
2015. The segment gross margin rate in the second quarter is
estimated to be around 20 percent and the operating rate is
expected to be in the 80 to 85 percent range.
Total sales volumes for the Potash segment are expected to range
from 2.0 to 2.4 million tonnes for the second quarter of 2015,
compared to 2.5 million tonnes last year. Mosaic's realized MOP
price, FOB plant, for the second quarter of 2015 is estimated to
range from $265 to $290 per tonne.
Mosaic's gross margin rate in the segment is expected to be in the
upper 30 percent range during the second quarter of 2015, while the
operating rate is expected to be in the 85 to 90 percent range.
Total sales volumes for the International Distribution segment
are expected to range from 1.4 to 1.7 million tonnes for the second
quarter of 2015, compared to 1.2 million tonnes last year. The
segment gross margin per tonne in the second quarter is estimated
to be in the range of $18 to $25 per
tonne.
For the 2015 full year guidance, Mosaic updates the following
estimates:
- Canadian resource taxes and royalties to range from
$325 to $375 million.
- The effective tax rate to be in the high teens.
The remaining 2015 full year guidance is unchanged:
- SG&A expenses to range from $360 to
$380 million, inclusive of costs from the newly acquired
distribution business in Brazil
and Paraguay.
- Brine management costs to be in the range of $180 to $200 million.
- Capital expenditures and investments in the range of
$1.1 to $1.4 billion.
- Phosphates sales volumes in the range of 9.0 to 10.0 million
tonnes.
- Potash sales volumes in the range of 8.5 to 9.0 million
tonnes.
- International Distribution sales volumes in the range of 6.0 to
7.0 million tonnes
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and
marketers of concentrated phosphate and potash crop nutrients.
Mosaic is a single source provider of phosphate and potash
fertilizers and feed ingredients for the global agriculture
industry. More information on the Company is available at
www.mosaicco.com.
Mosaic will conduct a conference call on Thursday, April 30, 2015, at 9:00 a.m. EDT to discuss first quarter earnings
results as well as global markets and trends. Presentation slides
and a simultaneous webcast of the conference call may be accessed
through Mosaic's website at www.mosaicco.com/investors. This
webcast will be available up to one year from the time of the
earnings call.
This document contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements include, but are not limited to, statements about
the Wa'ad Al Shamal Phosphate Company (also known as the Ma'aden
joint venture), the acquisition and assumption of certain related
liabilities of the Florida
phosphate assets of CF Industries, Inc. ("CF") and Mosaic's ammonia
supply agreements with CF; repurchases of stock; other proposed or
pending future transactions or strategic plans and other statements
about future financial and operating results. Such statements are
based upon the current beliefs and expectations of The Mosaic
Company's management and are subject to significant risks and
uncertainties. These risks and uncertainties include but are not
limited to risks and uncertainties arising from the ability of the
Ma'aden joint venture to obtain additional planned funding in
acceptable amounts and upon acceptable terms, the timely
development and commencement of operations of production facilities
in the Kingdom of Saudi Arabia,
the future success of current plans for the Ma'aden joint venture
and any future changes in those plans; difficulties with
realization of the benefits of the transactions with CF, including
the risk that the cost or capital savings from the transactions may
not be fully realized or may take longer to realize than expected,
or the price of natural gas or ammonia changes to a level at which
the natural gas based pricing under one of the long term ammonia
supply agreements with CF becomes disadvantageous to Mosaic;
customer defaults; the effects of Mosaic's decisions to exit
business operations or locations; the predictability and volatility
of, and customer expectations about, agriculture, fertilizer, raw
material, energy and transportation markets that are subject to
competitive and other pressures and economic and credit market
conditions; the level of inventories in the distribution channels
for crop nutrients; changes in foreign currency and exchange rates;
international trade risks and other risks associated with Mosaic's
international operations and those of joint ventures in which
Mosaic participates, including the risk that protests against
natural resource companies in Peru
extend to or impact the Miski Mayo mine; changes in government
policy; changes in environmental and other governmental regulation,
including greenhouse gas regulation, implementation of numeric
water quality standards for the discharge of nutrients into
Florida waterways or efforts to
reduce the flow of excess nutrients into the Mississippi River
basin, the Gulf of Mexico or
elsewhere; further developments in judicial or administrative
proceedings, or complaints that Mosaic's operations are adversely
impacting nearby farms, business operations or properties;
difficulties or delays in receiving, increased costs of or
challenges to necessary governmental permits or approvals or
increased financial assurance requirements; resolution of global
tax audit activity; the effectiveness of Mosaic's processes for
managing its strategic priorities; adverse weather conditions
affecting operations in Central
Florida, the Mississippi River basin, the Gulf Coast of
the United States or Canada, and including potential hurricanes,
excess heat, cold, snow, rainfall or drought; actual costs of
various items differing from management's current estimates,
including, among others, asset retirement, environmental
remediation, reclamation or other environmental regulation,
Canadian resources taxes and royalties, the liabilities Mosaic
assumed in the Florida phosphate
assets acquisition, or the costs of the Ma'aden joint venture, its
existing or future funding and Mosaic's commitments in support of
such funding; reduction of Mosaic's available cash and liquidity,
and increased leverage, due to its use of cash and/or available
debt capacity to fund share repurchases, financial assurance
requirements and strategic investments; brine inflows at Mosaic's
Esterhazy, Saskatchewan, potash
mine or other potash shaft mines; other accidents and disruptions
involving Mosaic's operations, including potential mine fires,
floods, explosions, seismic events or releases of hazardous or
volatile chemicals; and risks associated with cyber security,
including reputational loss, as well as other risks and
uncertainties reported from time to time in The Mosaic Company's
reports filed with the Securities and Exchange Commission. Actual
results may differ from those set forth in the forward-looking
statements.
For the three months
ended March 31, 2015, the Company reported the following notable
items which, combined, positively impacted earnings per share by
$0.10:
|
|
|
|
|
|
|
|
Amount
|
|
Tax
effect
|
|
EPS impact
|
Description
|
|
Segment
|
|
Line
item
|
|
(in millions)
|
|
(in millions)
|
|
(per share)
|
Foreign currency
transaction gain
|
|
Consolidated
|
|
Foreign currency
transaction gain
|
|
$
|
45
|
|
|
$
|
(8)
|
|
|
$
|
0.09
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
(38)
|
|
|
7
|
|
|
(0.08)
|
|
Discrete tax
items
|
|
Consolidated
|
|
Provision for
(benefit from) income taxes
|
|
—
|
|
|
28
|
|
|
0.08
|
|
Sales tax
refund
|
|
Phosphates
|
|
Other operating
income
|
|
8
|
|
|
(1)
|
|
|
0.02
|
|
Remediation of a
pre-combination environmental matter
|
|
Phosphates
|
|
Other
expense
|
|
(6)
|
|
|
1
|
|
|
(0.01)
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
9
|
|
|
$
|
27
|
|
|
$
|
0.10
|
|
For the three months
ended March 31, 2014, the Company reported the following notable
items which, combined, positively impacted earnings per share by
$0.02:
|
|
|
|
|
|
|
|
Amount
|
|
Tax effect
|
|
EPS impact
|
Description
|
|
Segment
|
|
Line
item
|
|
(in millions)
|
|
(in millions)
|
|
(per
share)
|
Share
repurchase
|
|
Consolidated
|
|
Change in value of
share repurchase agreement
|
|
$
|
(60)
|
|
|
$
|
—
|
|
|
$
|
(0.15)
|
|
Special Equity
Incentive
|
|
Consolidated
|
|
Selling, general
& administrative
|
|
(15)
|
|
|
4
|
|
|
(0.03)
|
|
Severance
|
|
Potash
|
|
Other operating
expense
|
|
(6)
|
|
|
2
|
|
|
(0.01)
|
|
Remediation of a
pre-combination environmental event
|
|
Phosphates
|
|
Other
expense
|
|
(5)
|
|
|
1
|
|
|
(0.01)
|
|
Foreign currency
transaction gain
|
|
Consolidated
|
|
Foreign currency
transaction gain
|
|
43
|
|
|
(12)
|
|
|
0.08
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
(4)
|
|
|
1
|
|
|
(0.01)
|
|
Closing and
integrations costs for CF acquisition
|
|
Phosphates
|
|
Selling, general
& administrative
|
|
(5)
|
|
|
2
|
|
|
(0.01)
|
|
Discrete tax
items
|
|
Consolidated
|
|
Provision for
(benefit from) income taxes
|
|
—
|
|
|
62
|
|
|
0.16
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
(52)
|
|
|
$
|
60
|
|
|
$
|
0.02
|
|
Condensed
Consolidated Statements of Earnings
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
2,139.1
|
|
|
$
|
1,986.2
|
|
Cost of goods
sold
|
|
1,719.9
|
|
|
1,574.6
|
|
Gross
margin
|
|
419.2
|
|
|
411.6
|
|
Selling, general and
administrative expenses
|
|
100.4
|
|
|
120.0
|
|
Other operating
expense
|
|
0.3
|
|
|
25.0
|
|
Operating
earnings
|
|
318.5
|
|
|
266.6
|
|
Loss in value of
share repurchase agreement
|
|
—
|
|
|
(60.0)
|
|
Interest expense,
net
|
|
(31.3)
|
|
|
(26.7)
|
|
Foreign currency
transaction gain
|
|
45.1
|
|
|
43.4
|
|
Other
expense
|
|
(5.6)
|
|
|
(4.9)
|
|
Earnings from
consolidated companies before income taxes
|
|
326.7
|
|
|
218.4
|
|
Provision for
(benefit from) income taxes
|
|
30.7
|
|
|
(2.6)
|
|
Earnings from
consolidated companies
|
|
296.0
|
|
|
221.0
|
|
Equity in net
earnings (loss) of nonconsolidated companies
|
|
(1.4)
|
|
|
(3.3)
|
|
Net earnings
including noncontrolling interests
|
|
294.6
|
|
|
217.7
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
|
(0.2)
|
|
|
0.2
|
|
Net earnings
attributable to Mosaic
|
|
$
|
294.8
|
|
|
$
|
217.5
|
|
Diluted net earnings
per share attributable to Mosaic
|
|
$
|
0.80
|
|
|
$
|
0.54
|
|
Diluted weighted
average number of shares outstanding
|
|
367.9
|
|
|
379.6
|
|
Condensed
Consolidated Balance Sheets
|
(in millions,
except per share amounts)
|
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
|
|
March 31,
2015
|
|
December 31,
2014
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,517.4
|
|
|
$
|
2,374.6
|
|
Receivables,
net
|
|
661.4
|
|
|
754.4
|
|
Inventories
|
|
1,523.0
|
|
|
1,718.3
|
|
Deferred income
taxes
|
|
158.4
|
|
|
148.7
|
|
Other current
assets
|
|
391.4
|
|
|
368.2
|
|
Total current
assets
|
|
5,251.6
|
|
|
5,364.2
|
|
Property, plant and
equipment, net
|
|
8,899.4
|
|
|
9,313.9
|
|
Investments in
nonconsolidated companies
|
|
862.1
|
|
|
849.8
|
|
Goodwill
|
|
1,686.7
|
|
|
1,806.5
|
|
Deferred income
taxes
|
|
383.5
|
|
|
394.4
|
|
Other
assets
|
|
548.6
|
|
|
554.2
|
|
Total
assets
|
|
$
|
17,631.9
|
|
|
$
|
18,283.0
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
|
$
|
10.4
|
|
|
$
|
13.5
|
|
Current maturities of
long-term debt
|
|
41.0
|
|
|
41.0
|
|
Accounts
payable
|
|
706.8
|
|
|
797.3
|
|
Accrued
liabilities
|
|
853.4
|
|
|
726.1
|
|
Deferred income
taxes
|
|
—
|
|
|
3.7
|
|
Accrued income
taxes
|
|
9.1
|
|
|
18.8
|
|
Total current
liabilities
|
|
1,620.7
|
|
|
1,600.4
|
|
Long-term debt, less
current maturities
|
|
3,775.2
|
|
|
3,778.0
|
|
Deferred income
taxes
|
|
901.2
|
|
|
984.0
|
|
Other noncurrent
liabilities
|
|
1,128.1
|
|
|
1,200.0
|
|
Equity:
|
|
|
|
|
Preferred Stock,
$0.01 par value, 15,000,000 shares authorized, none issued and
outstanding as of March 31, 2015 and December 31, 2014
|
|
—
|
|
|
—
|
|
Class A Common Stock,
$0.01 par value, 194,203,987 shares authorized, 17,176,046 shares
issued and outstanding as of March 31, 2015 and December 31,
2014
|
|
0.2
|
|
|
0.2
|
|
Class B Common Stock,
$0.01 par value, 87,008,602 shares authorized, none issued and
outstanding as of March 31, 2015 and December 31, 2014
|
|
—
|
|
|
—
|
|
Common Stock, $0.01
par value, 1,000,000,000 shares authorized, 370,124,178 shares
issued and 347,940,354 shares outstanding as of March 31, 2015,
369,987,783 shares issued and 350,364,236 shares outstanding as of
December 31, 2014
|
|
3.5
|
|
|
3.5
|
|
Capital in excess of
par value
|
|
13.2
|
|
|
4.2
|
|
Retained
earnings
|
|
11,258.5
|
|
|
11,168.9
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,083.2)
|
|
|
(473.7)
|
|
Total Mosaic
stockholders' equity
|
|
10,192.2
|
|
|
10,703.1
|
|
Noncontrolling
interests
|
|
14.5
|
|
|
17.5
|
|
Total
equity
|
|
10,206.7
|
|
|
10,720.6
|
|
Total liabilities and
equity
|
|
$
|
17,631.9
|
|
|
$
|
18,283.0
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities:
|
|
|
|
Net earnings
including noncontrolling interests
|
|
$
|
294.6
|
|
|
$
|
217.7
|
|
Adjustments to
reconcile net earnings including noncontrolling interests to net
cash provided by operating activities:
|
|
|
|
|
Depreciation,
depletion and amortization
|
|
182.8
|
|
|
174.3
|
|
Deferred income
taxes
|
|
(31.5)
|
|
|
(58.9)
|
|
Equity in net loss of
nonconsolidated companies, net of dividends
|
|
1.4
|
|
|
3.3
|
|
Accretion expense for
asset retirement obligations
|
|
7.8
|
|
|
10.5
|
|
Share-based
compensation expense
|
|
4.6
|
|
|
34.9
|
|
Change in value of
share repurchase agreement
|
|
—
|
|
|
60.0
|
|
Unrealized (gain)
loss on derivatives
|
|
45.4
|
|
|
7.9
|
|
Other
|
|
4.1
|
|
|
4.0
|
|
Changes in assets and
liabilities, excluding effects of acquisition:
|
|
|
|
|
Receivables,
net
|
|
8.0
|
|
|
(84.9)
|
|
Inventories
|
|
108.5
|
|
|
(27.3)
|
|
Other current and
noncurrent assets
|
|
(36.5)
|
|
|
151.4
|
|
Accounts
payable
|
|
2.0
|
|
|
86.8
|
|
Accrued liabilities
and income taxes
|
|
82.0
|
|
|
77.2
|
|
Other noncurrent
liabilities
|
|
(17.7)
|
|
|
(29.9)
|
|
Net cash provided by
operating activities
|
|
655.5
|
|
|
627.0
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital
expenditures
|
|
(229.5)
|
|
|
(274.9)
|
|
Acquisition of
business
|
|
—
|
|
|
(1,353.6)
|
|
Proceeds from
adjustment to acquisition of business
|
|
47.9
|
|
|
—
|
|
Investments in
nonconsolidated companies
|
|
(3.0)
|
|
|
(5.8)
|
|
Other
|
|
1.7
|
|
|
—
|
|
Net cash used in
investing activities
|
|
(182.9)
|
|
|
(1,634.3)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Payments of
short-term debt
|
|
(32.7)
|
|
|
(58.4)
|
|
Proceeds from
issuance of short-term debt
|
|
29.4
|
|
|
65.9
|
|
Payments of long-term
debt
|
|
(0.6)
|
|
|
(0.3)
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
0.2
|
|
Proceeds from stock
option exercises
|
|
2.9
|
|
|
0.2
|
|
Repurchases of
stock
|
|
(134.4)
|
|
|
(1,677.9)
|
|
Cash dividends
paid
|
|
(91.4)
|
|
|
(99.7)
|
|
Other
|
|
(0.2)
|
|
|
(0.3)
|
|
Net cash used in
financing activities
|
|
(227.0)
|
|
|
(1,770.3)
|
|
Effect of exchange
rate changes on cash
|
|
(102.8)
|
|
|
(24.8)
|
|
Net change in cash
and cash equivalents
|
|
142.8
|
|
|
(2,802.4)
|
|
Cash and cash
equivalents - beginning of period
|
|
2,374.6
|
|
|
5,293.1
|
|
Cash and cash
equivalents - end of period
|
|
$
|
2,517.4
|
|
|
$
|
2,490.7
|
|
Potash Gross
Margin, Excluding Resource Taxes and Royalties,
Calculation
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
Sales
|
|
$
|
652.8
|
|
|
$
|
733.3
|
|
Gross
margin
|
|
241.9
|
|
|
216.1
|
|
Canadian resource
taxes
|
|
78.1
|
|
|
30.3
|
|
Canadian
royalties
|
|
11.3
|
|
|
5.9
|
|
Gross margin,
excluding Canadian resource taxes and royalties (CRT)
|
|
$
|
331.3
|
|
|
$
|
252.3
|
|
Gross margin
percentage, excluding CRT
|
|
50.8
|
%
|
|
34.4
|
%
|
The Company has presented above gross margin excluding Canadian
resource taxes and royalties ("CRT") for Potash which
is a non-GAAP financial measure. Generally, a non-GAAP
financial measure is a supplemental numerical measure of a
company's performance, financial position or cash flows that either
excludes or includes amounts that are not normally excluded or
included in the most directly comparable measure calculated and
presented in accordance with U.S. generally accepted accounting
principles ("GAAP"). Gross margin excluding CRT is not a measure of
financial performance under GAAP. Because not all companies use
identical calculations, investors should consider that Mosaic's
calculation may not be comparable to other similarly titled
measures presented by other companies.
Gross margin excluding CRT provides a measure that the Company
believes enhances the reader's ability to compare the Company's
gross margin with that of other companies which incur CRT expense
and classify it in a manner different than the Company in their
statement of earnings. Because securities analysts, investors,
lenders and others use gross margin excluding CRT, the Company's
management believes that Mosaic's presentation of gross margin
excluding CRT for Potash affords them greater transparency in
assessing Mosaic's financial performance against competitors. Gross
margin excluding CRT, should not be considered as a substitute for,
or superior to, measures of financial performance prepared in
accordance with GAAP.
Earnings Per Share
Calculation
|
|
|
|
Three months ended
March 31,
|
|
|
2015
|
|
2014
|
Net earnings
attributed to Mosaic
|
|
$
|
294.8
|
|
|
$
|
217.5
|
|
Undistributed
earnings attributable to participating securities
|
|
—
|
|
|
(12.4)
|
|
Numerator for basic
and diluted earnings available to common stockholders
|
|
$
|
294.8
|
|
|
$
|
205.1
|
|
Basic weighted
average number of shares outstanding
|
|
366.0
|
|
|
401.1
|
|
Shares subject to
forward contract
|
|
—
|
|
|
(22.9)
|
|
Basic weighted
average number of shares outstanding attributable to common
stockholders
|
|
366.0
|
|
|
378.2
|
|
Dilutive impact of
share-based awards
|
|
1.9
|
|
|
1.4
|
|
Diluted weighted
average number of shares outstanding
|
|
367.9
|
|
|
379.6
|
|
Basic net earnings
per share
|
|
$
|
0.81
|
|
|
$
|
0.54
|
|
Diluted net earnings
per share
|
|
$
|
0.80
|
|
|
$
|
0.54
|
|
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SOURCE The Mosaic Company