PLYMOUTH, Minn., Aug. 4, 2015 /PRNewswire/ -- The Mosaic
Company (NYSE: MOS) today reported second quarter 2015 net earnings
of $391 million, compared to
$248 million in the second quarter of
2014. Earnings per diluted share were $1.08 in the quarter compared to $0.64 last year. Notable items positively
impacted current quarter earnings per share by $0.03. Mosaic's net sales in the second quarter
were $2.5 billion, up from
$2.4 billion in sales last year.
Operating earnings during the quarter were $510 million, up from $403
million a year ago. The year-over-year change was driven by
higher phosphates operating earnings primarily as a result of
higher sales volumes, and higher potash operating earnings as a
result of higher realized prices and benefits from lower operating
costs, partially offset by higher Canadian resource taxes.
"Our second quarter results demonstrate the earnings leverage
we've created," said Jim Prokopanko,
President and Chief Executive Officer. "Over the course of the last
two years, we have transformed Mosaic's operations to become more
efficient and made great progress in optimizing our balance sheet.
This quarter we generated higher earnings per share than two years
ago, notwithstanding lower potash and phosphates prices since
then."
As previously announced, James C. "Joc" O'Rourke, currently
Mosaic's Executive Vice President and Chief Operating Officer, will
succeed Mr. Prokopanko as President and CEO on August 5, 2015. Mr. Prokopanko will remain in an
advisory role until his planned retirement in January 2016.
Cash flow from operating activities in the second quarter of
2015 was $583 million, which is down
from $796 million in the prior year
period as a result of favorable working capital trends last year.
Capital expenditures totaled $227
million in the quarter. Mosaic's total cash and cash
equivalents were $2.2 billion and
long-term debt was $3.8 billion as of
June 30, 2015.
"We are pleased with the performance of each of our segments
during the second quarter," said Rich
Mack, Executive Vice President and Chief Financial Officer.
"Demand from the export markets, combined with continued healthy
fertilizer application rates in North
America, led to good volumes and prices during the quarter.
Cost reduction efforts and focused execution helped drive margin
rates higher, resulting in a significant improvement in earnings
compared to a year ago."
Business Highlights – Second Quarter 2015
- The Company's progress against strategic priorities is
positively impacting financial results. During the second quarter
Mosaic delivered:
- Higher margin rates in both Potash and Phosphates, driven by:
- Significantly lower MOP cash production costs of $89 per tonne, including $18 per tonne of brine management expenses.
- Lower phosphate rock costs and improvements in finished
phosphate conversion costs per tonne.
- Flat Selling, General and Administrative expenses with an
expanded business footprint compared to last year.
- Integration of Archer Daniels Midland's fertilizer distribution
business in Brazil and
Paraguay is largely completed and
the Company is on track to achieve targeted benefits.
- Mosaic's growth initiatives in Canada and Florida continue to be on time and on
budget.
- The Company's joint venture phosphate project, Wa'ad Al Shamal
Phosphate Company, is projecting a capital cost of approximately
$8.0 billion, or seven percent higher
than initial capital estimates.
- Subsequent to the end of the second quarter, the Company
completed its previously announced $500
million accelerated share repurchase program.
- Mosaic continues to maintain a strong balance sheet and
generate attractive operating cash flow, ending the quarter with
$2.2 billion of cash and cash
equivalents on the balance sheet.
Phosphates
Phosphates
Results
|
2Q 2015
Actual
|
2Q 2015
Guidance
|
Average DAP Selling
Price
|
$450
|
$425 to
$450
|
Sales
Volume
|
2.8 million
tonnes
|
2.3 to 2.7 million
tonnes
|
Phosphate
Production
|
86% of operational
capacity
|
80-85% of operational
capacity
|
"Our Phosphates business is driving earnings growth for Mosaic,"
Mr. Prokopanko said. "In fact, during the second quarter and
year-to-date the business accounted for half of Mosaic's operating
earnings. As we look ahead, strong global demand and relatively
stable raw material costs bode well for our Phosphates
business."
Net sales in the Phosphates segment were $1.4 billion for the second quarter, up from
$1.3 billion last year with higher
sales volumes partially offset by lower finished product prices.
Gross margin was $296 million, or 21
percent of net sales, compared to $271
million, or 20 percent of net sales, for the same period a
year ago. The year-over-year improvement in gross margin rate
primarily reflects lower phosphate rock costs, partially offset by
lower finished product selling prices. Operating earnings were
$259 million, up from $219 million in the same quarter last year.
The second quarter average DAP selling price, FOB plant, was
$450 per tonne, compared to
$465 per tonne a year ago. Total
sales volumes in the Phosphates' segment were 2.8 million tonnes in
the second quarter, up from 2.6 million tonnes last year.
Mosaic's North American finished phosphate production was 2.5
million tonnes, or 86 percent of operational capacity, compared to
84 percent a year ago.
Potash
Potash
Results
|
2Q 2015
Actual
|
2Q 2015
Guidance
|
Average MOP Selling
Price
|
$280
|
$265 to
$290
|
Sales
Volume
|
2.3 million
tonnes
|
2.0 to 2.4 million
tonnes
|
Potash
Production
|
90% of operational
capacity
|
85-90% of operational
capacity
|
"For the third quarter in a row, our Potash business delivered
outstanding results, with consistent production and low operating
costs," Mr. Prokopanko said. "Our three world-scale Canadian mines
provide operating efficiencies and flexibility needed to respond to
global demand with significantly lower cash production costs.
Mosaic expects robust global shipments in the second half of
2015."
Net sales in the Potash segment totaled $730 million for the second quarter, down from
$762 million last year, driven by
lower sales volumes, partially offset by higher average realized
prices. Gross margin was $295
million, or 40 percent of net sales, compared to
$226 million, or 30 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 higher operating rates, cost savings
initiatives and a weaker Canadian dollar, partially offset by an
increase in Canadian resource taxes and royalties.
The second quarter average MOP selling price, FOB plant, was
$280 per tonne, up from $267 per tonne a year ago. The Potash segment's
total sales volumes for the second quarter were 2.3 million tonnes,
compared to 2.5 million tonnes a year ago.
Potash production was 2.4 million tonnes, or 90 percent of
operational capacity, up from 2.0 million tonnes, or 76 percent of
operational capacity, a year ago. The higher operating rate in the
second quarter is because of planned turnarounds in the third
quarter and expected strong potash demand for the remainder of
2015.
International Distribution (ID)
ID Results
|
2Q 2015
Actual
|
2Q 2015
Guidance
|
Sales
Volume
|
1.5 million
tonnes
|
1.4 to 1.7 million
tonnes
|
Gross Margin per
Tonne
|
$19 per
tonne
|
$18 to $25 per
tonne
|
"Integration of our acquisition in Brazil and Paraguay is largely completed and Mosaic is on
track to realize the strategic value," Mr. Prokopanko said.
"Brazilian real volatility and delayed availability of farm credit
resulted in delayed fertilizer demand in the region. With our
expanded footprint and product placement ahead of the season,
Mosaic is well positioned for the second half of 2015 in
Brazil."
Net sales in the International Distribution segment were
$637 million for the second quarter,
up from $542 million last year,
driven by higher sales volumes as a result of the ADM acquisition.
Gross margin was $29 million, or 4
percent of net sales, compared to $34
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 the impact of declining prices and delayed fertilizer
demand in Brazil, partially offset
by the impact of the weaker local currency on expenses. Operating
earnings were $8 million, down from
$16 million in the same quarter last
year.
The second quarter average selling price was $427 per tonne, compared to $452 per tonne a year ago. International
Distribution segment total sales volumes were 1.5 million tonnes,
up from 1.2 million tonnes last year, benefiting from the ADM
acquisition.
Other
SG&A expenses were $89 million
for the second quarter, roughly flat with last year,
notwithstanding an expanded business footprint resulting from the
ADM acquisition.
Financial Guidance
"Despite the recent swings in grain and oilseed prices, we
remain confident in our second half outlook," said Joc O'Rourke, Executive Vice President and Chief
Operating Officer. "Stable farm economics, combined with the
benefits of our strategic initiatives, position Mosaic to generate
attractive returns for our shareholders."
Total sales volumes for the Phosphates segment are expected to
range from 2.1 to 2.4 million tonnes for the third quarter of 2015,
compared to 2.2 million tonnes last year. Mosaic's realized DAP
price, FOB plant, is estimated to range from $435 to $455 per tonne for the third quarter of
2015. The segment gross margin rate is estimated to be in the
low-20 percent range and the operating rate is expected to be in
the mid-80 percent range.
Total sales volumes for the Potash segment are expected to range
from 1.6 to 2.0 million tonnes for the third quarter of 2015,
compared to 1.8 million tonnes last year. Mosaic's realized MOP
price, FOB plant, is estimated to range from $260 to $280 per tonne. Mosaic's gross margin
rate in the segment is expected to be in the low-20 percent range
during the third quarter of 2015, while the seasonally low
operating rate is expected to be in the mid-60 percent range, both
reflecting traditional summer maintenance downtime.
Total sales volumes for the International Distribution segment
are expected to range from 1.9 to 2.2 million tonnes for the third
quarter of 2015, compared to 1.4 million tonnes last year. The
segment gross margin per tonne is estimated to be in the range of
$20 to $26 per tonne.
For the 2015 full year guidance, Mosaic updates the following
estimates:
- Canadian resource taxes and royalties to be in the range of
$310 to $350 million, compared to
prior guidance of $325 to $375
million.
- Capital expenditures and investments to be in the range of
$1.1 to $1.3 billion, compared to
$1.1 to $1.4 billion.
- Phosphates sales volumes to be in the range of 9.5 to 10.0
million tonnes, compared to 9.0 to 10.0 million tonnes.
- Potash sales volumes to be in the range of 8.2 to 8.6 million
tonnes, compared to 8.5 to 9.0 million tonnes.
- International Distribution sales volumes to be in the range of
6.0 to 6.5 million tonnes, compared to 6.0 to 7.0 million
tonnes.
The remaining 2015 full year guidance is unchanged:
- SG&A expenses to range from $360 to
$380 million, inclusive of costs from the recently acquired
distribution business in Brazil
and Paraguay.
- Brine management costs to be in the range of $180 to $200 million.
- The effective tax rate to be in the high teens.
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 Tuesday, August 4, 2015, at 9:00 a.m. EDT to discuss second 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 long term ammonia supply
agreements with CF, including the risk that the cost savings from
the agreements may not be fully realized or that the price of
natural gas or ammonia changes to a level at which the natural gas
based pricing under one of these agreements 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; the effect of future
product innovations or development of new technologies on demand
for our products; 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 expansion of the types and extent of water resources
regulated under federal law, 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, 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 June 30, 2015, the Company reported the following notable
items which, combined, positively impacted earnings per share by
$0.03:
|
|
|
|
|
|
|
|
Amount
|
|
Tax
effect
|
|
EPS impact
|
Description
|
|
Segment
|
|
Line
item
|
|
(in millions)
|
|
(in millions)
|
|
(per share)
|
Foreign currency
transaction (loss) gain
|
|
Consolidated
|
|
Foreign currency
transaction (loss) gain
|
|
$
|
(16)
|
|
|
$
|
3
|
|
|
$
|
(0.04)
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
27
|
|
|
(5)
|
|
|
0.06
|
|
Discrete tax
items
|
|
Consolidated
|
|
Provision for income
taxes
|
|
—
|
|
|
10
|
|
|
0.03
|
|
Write down of equity
investment
|
|
Corporate &
Other
|
|
Other non-operating
expense
|
|
(8)
|
|
|
—
|
|
|
(0.02)
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
0.03
|
|
For the three months
ended June 30, 2014, the Company reported the following notable
items which, combined, negatively impacted earnings per share by
$0.06:
|
|
|
|
|
|
|
|
Amount
|
|
Tax effect
|
|
EPS impact
|
Description
|
|
Segment
|
|
Line
item
|
|
(in millions)
|
|
(in millions)
|
|
(per
share)
|
Share
repurchase
|
|
Consolidated
|
|
Loss in value of
share repurchase agreement
|
|
$
|
(5)
|
|
|
$
|
—
|
|
|
$
|
(0.01)
|
|
Severance
|
|
Corporate &
Other
|
|
Other operating
expense
|
|
(4)
|
|
|
1
|
|
|
(0.01)
|
|
Severance
|
|
Phosphates
|
|
Other operating
expense
|
|
(10)
|
|
|
3
|
|
|
(0.02)
|
|
Foreign currency
transaction (loss) gain
|
|
Consolidated
|
|
Foreign currency
transaction (loss) gain
|
|
(39)
|
|
|
11
|
|
|
(0.07)
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
24
|
|
|
(6)
|
|
|
0.04
|
|
Asset disposition
(loss on Chile)
|
|
Corporate &
Other
|
|
Other operating
expense
|
|
(6)
|
|
|
—
|
|
|
(0.01)
|
|
Other
|
|
Phosphates
|
|
Selling, general
& administrative & other operating expense
|
|
(5)
|
|
|
1
|
|
|
(0.01)
|
|
Discrete tax
items
|
|
Consolidated
|
|
Provision for income
taxes
|
|
—
|
|
|
14
|
|
|
0.03
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
(45)
|
|
|
$
|
24
|
|
|
$
|
(0.06)
|
|
Condensed
Consolidated Statements of Earnings
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
|
(unaudited)
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
2,487.5
|
|
|
$
|
2,440.2
|
|
|
$
|
4,626.6
|
|
|
$
|
4,426.5
|
|
Cost of goods
sold
|
|
1,879.6
|
|
|
1,919.1
|
|
|
3,599.5
|
|
|
3,493.7
|
|
Gross
margin
|
|
607.9
|
|
|
521.1
|
|
|
1,027.1
|
|
|
932.8
|
|
Selling, general and
administrative expenses
|
|
89.3
|
|
|
87.5
|
|
|
189.8
|
|
|
207.4
|
|
Other operating
expense
|
|
8.6
|
|
|
30.4
|
|
|
8.8
|
|
|
55.6
|
|
Operating
earnings
|
|
510.0
|
|
|
403.2
|
|
|
828.5
|
|
|
669.8
|
|
Loss in value of
share repurchase agreement
|
|
—
|
|
|
(5.5)
|
|
|
—
|
|
|
(65.5)
|
|
Interest expense,
net
|
|
(23.5)
|
|
|
(24.6)
|
|
|
(54.8)
|
|
|
(51.3)
|
|
Foreign currency
transaction (loss) gain
|
|
(16.0)
|
|
|
(38.7)
|
|
|
29.1
|
|
|
4.7
|
|
Other
expense
|
|
(7.8)
|
|
|
(1.3)
|
|
|
(13.4)
|
|
|
(6.2)
|
|
Earnings from
consolidated companies before income taxes
|
|
462.7
|
|
|
333.1
|
|
|
789.4
|
|
|
551.5
|
|
Provision for income
taxes
|
|
72.6
|
|
|
82.7
|
|
|
103.3
|
|
|
80.1
|
|
Earnings from
consolidated companies
|
|
390.1
|
|
|
250.4
|
|
|
686.1
|
|
|
471.4
|
|
Equity in net
earnings (loss) of nonconsolidated companies
|
|
0.9
|
|
|
(2.2)
|
|
|
(0.5)
|
|
|
(5.5)
|
|
Net earnings
including noncontrolling interests
|
|
391.0
|
|
|
248.2
|
|
|
685.6
|
|
|
465.9
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
|
0.4
|
|
|
(0.2)
|
|
|
0.2
|
|
|
(0.1)
|
|
Net earnings
attributable to Mosaic
|
|
$
|
390.6
|
|
|
$
|
248.4
|
|
|
$
|
685.4
|
|
|
$
|
466.0
|
|
Diluted net earnings
per share attributable to Mosaic
|
|
$
|
1.08
|
|
|
$
|
0.64
|
|
|
$
|
1.88
|
|
|
$
|
1.18
|
|
Diluted weighted
average number of shares outstanding
|
|
363.3
|
|
|
376.2
|
|
|
365.5
|
|
|
377.5
|
|
Condensed
Consolidated Balance Sheets
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
|
(unaudited)
|
|
|
June 30,
2015
|
|
December
31, 2014
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
2,209.9
|
|
|
$
|
2,374.6
|
|
Receivables,
net
|
|
626.6
|
|
|
754.4
|
|
Inventories
|
|
1,612.2
|
|
|
1,718.3
|
|
Deferred income
taxes
|
|
148.2
|
|
|
148.7
|
|
Other current
assets
|
|
503.2
|
|
|
368.2
|
|
Total current
assets
|
|
5,100.1
|
|
|
5,364.2
|
|
Property, plant and
equipment, net
|
|
9,041.2
|
|
|
9,313.9
|
|
Investments in
nonconsolidated companies
|
|
930.5
|
|
|
849.8
|
|
Goodwill
|
|
1,709.6
|
|
|
1,806.5
|
|
Deferred income
taxes
|
|
423.0
|
|
|
394.4
|
|
Other
assets
|
|
572.5
|
|
|
554.2
|
|
Total
assets
|
|
$
|
17,776.9
|
|
|
$
|
18,283.0
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
|
$
|
27.0
|
|
|
$
|
13.5
|
|
Current maturities of
long-term debt
|
|
57.1
|
|
|
41.0
|
|
Accounts
payable
|
|
858.2
|
|
|
797.3
|
|
Accrued
liabilities
|
|
940.7
|
|
|
726.1
|
|
Deferred income
taxes
|
|
—
|
|
|
3.7
|
|
Accrued income
taxes
|
|
—
|
|
|
18.8
|
|
Total current
liabilities
|
|
1,883.0
|
|
|
1,600.4
|
|
Long-term debt, less
current maturities
|
|
3,761.8
|
|
|
3,778.0
|
|
Deferred income
taxes
|
|
968.8
|
|
|
984.0
|
|
Other noncurrent
liabilities
|
|
1,011.5
|
|
|
1,200.0
|
|
Equity:
|
|
|
|
|
Preferred Stock,
$0.01 par value, 15,000,000 shares authorized, none issued and
outstanding as of June 30, 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 June 30, 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 June 30, 2015 and December 31, 2014
|
|
—
|
|
|
—
|
|
Common Stock, $0.01
par value, 1,000,000,000 shares authorized, 370,193,546 shares
issued and 339,676,389 shares outstanding as of June 30, 2015,
369,987,783 shares issued and 350,364,236 shares outstanding as of
December 31, 2014
|
|
3.4
|
|
|
3.5
|
|
Capital in excess of
par value
|
|
9.2
|
|
|
4.2
|
|
Retained
earnings
|
|
11,065.4
|
|
|
11,168.9
|
|
Accumulated other
comprehensive income (loss)
|
|
(941.4)
|
|
|
(473.7)
|
|
Total Mosaic
stockholders' equity
|
|
10,136.8
|
|
|
10,703.1
|
|
Noncontrolling
interests
|
|
15.0
|
|
|
17.5
|
|
Total
equity
|
|
10,151.8
|
|
|
10,720.6
|
|
Total liabilities and
equity
|
|
$
|
17,776.9
|
|
|
$
|
18,283.0
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
|
(unaudited)
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net cash provided by
operating activities
|
|
583.1
|
|
|
796.3
|
|
|
$
|
1,238.6
|
|
|
$
|
1,423.3
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(227.4)
|
|
|
(214.0)
|
|
|
(456.9)
|
|
|
(488.9)
|
|
Acquisition of
business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,353.6)
|
|
Proceeds from
adjustment to acquisition of business
|
|
—
|
|
|
—
|
|
|
47.9
|
|
|
—
|
|
Investments in
nonconsolidated companies
|
|
(122.0)
|
|
|
(143.8)
|
|
|
(125.0)
|
|
|
(149.6)
|
|
Other
|
|
6.0
|
|
|
(2.5)
|
|
|
7.7
|
|
|
(2.5)
|
|
Net cash used in
investing activities
|
|
(343.4)
|
|
|
(360.3)
|
|
|
(526.3)
|
|
|
(1,994.6)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Payments of
short-term debt
|
|
(112.1)
|
|
|
(65.5)
|
|
|
(144.8)
|
|
|
(123.9)
|
|
Proceeds from
issuance of short-term debt
|
|
129.1
|
|
|
36.9
|
|
|
158.5
|
|
|
102.8
|
|
Payments of long-term
debt
|
|
(1.8)
|
|
|
(0.7)
|
|
|
(2.4)
|
|
|
(1.0)
|
|
Proceeds from
issuance of long-term debt
|
|
3.8
|
|
|
3.9
|
|
|
3.8
|
|
|
4.1
|
|
Proceeds from stock
option exercises
|
|
1.3
|
|
|
1.1
|
|
|
4.2
|
|
|
1.3
|
|
Repurchases of
stock
|
|
(500.1)
|
|
|
(454.8)
|
|
|
(634.5)
|
|
|
(2,132.7)
|
|
Cash dividends
paid
|
|
(98.1)
|
|
|
(95.1)
|
|
|
(189.5)
|
|
|
(194.8)
|
|
Other
|
|
0.7
|
|
|
(0.3)
|
|
|
0.5
|
|
|
(0.6)
|
|
Net cash used in
financing activities
|
|
(577.2)
|
|
|
(574.5)
|
|
|
(804.2)
|
|
|
(2,344.8)
|
|
Effect of exchange
rate changes on cash
|
|
30.0
|
|
|
14.8
|
|
|
(72.8)
|
|
|
(10.0)
|
|
Net change in cash
and cash equivalents
|
|
(307.5)
|
|
|
(123.7)
|
|
|
(164.7)
|
|
|
(2,926.1)
|
|
Cash and cash
equivalents - beginning of period
|
|
2,517.4
|
|
|
2,490.7
|
|
|
2,374.6
|
|
|
5,293.1
|
|
Cash and cash
equivalents - end of period
|
|
$
|
2,209.9
|
|
|
$
|
2,367.0
|
|
|
$
|
2,209.9
|
|
|
$
|
2,367.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Potash Gross
Margin, Excluding Resource Taxes and Royalties,
Calculation
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sales
|
|
$
|
730.2
|
|
|
$
|
762.3
|
|
|
$
|
1,383.0
|
|
|
$
|
1,495.5
|
|
Gross
margin
|
|
295.0
|
|
|
226.3
|
|
|
536.9
|
|
|
442.3
|
|
Canadian resource
taxes
|
|
54.9
|
|
|
44.8
|
|
|
133.0
|
|
|
75.1
|
|
Canadian
royalties
|
|
9.0
|
|
|
7.2
|
|
|
20.2
|
|
|
13.1
|
|
Gross margin,
excluding Canadian resource taxes and royalties (CRT)
|
|
$
|
358.9
|
|
|
$
|
278.3
|
|
|
$
|
690.1
|
|
|
$
|
530.5
|
|
Gross margin
percentage, excluding CRT
|
|
49.2
|
%
|
|
36.5
|
%
|
|
49.9
|
%
|
|
35.5
|
%
|
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
June 30,
|
|
Six months ended
June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net earnings
attributed to Mosaic
|
|
$
|
390.6
|
|
|
$
|
248.4
|
|
|
$
|
685.4
|
|
|
$
|
466.0
|
|
Undistributed
earnings attributable to participating securities
|
|
—
|
|
|
(6.3)
|
|
|
—
|
|
|
(19.5)
|
|
Numerator for basic
and diluted earnings available to common stockholders
|
|
$
|
390.6
|
|
|
$
|
242.1
|
|
|
$
|
685.4
|
|
|
$
|
446.5
|
|
Basic weighted
average number of shares outstanding
|
|
361.3
|
|
|
384.0
|
|
|
363.6
|
|
|
392.5
|
|
Shares subject to
forward contract
|
|
—
|
|
|
(9.8)
|
|
|
—
|
|
|
(16.4)
|
|
Basic weighted
average number of shares outstanding attributable to common
stockholders
|
|
361.3
|
|
|
374.2
|
|
|
363.6
|
|
|
376.1
|
|
Dilutive impact of
share-based awards
|
|
2.0
|
|
|
2.0
|
|
|
1.9
|
|
|
1.4
|
|
Diluted weighted
average number of shares outstanding
|
|
363.3
|
|
|
376.2
|
|
|
365.5
|
|
|
377.5
|
|
Basic net earnings
per share
|
|
$
|
1.08
|
|
|
$
|
0.65
|
|
|
$
|
1.89
|
|
|
$
|
1.19
|
|
Diluted net earnings
per share
|
|
$
|
1.08
|
|
|
$
|
0.64
|
|
|
$
|
1.88
|
|
|
$
|
1.18
|
|
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SOURCE The Mosaic Company