PLYMOUTH, Minn., Nov. 3,
2015 /PRNewswire/ -- The Mosaic Company (NYSE: MOS) today
reported third quarter 2015 net earnings of $160 million, compared to $202 million in the third quarter of 2014.
Earnings per diluted share were $0.45
in the quarter compared to $0.54 last
year. Notable items negatively impacted current quarter earnings
per share by $0.17, primarily due to
non-cash foreign currency transaction losses. Adjusted earnings per
share, excluding notable items, were $0.62 per share in the quarter, compared to
$0.56 per share last year. Mosaic's
net sales in the third quarter were $2.1
billion, down from $2.3
billion in sales last year, as a result of lower volumes and
prices. Operating earnings during the quarter were $246 million, down from $277 million a year ago. The year-over-year
change was driven by lower net sales, partially offset by no
restructuring expenses during the current year period.
"Over the course of the last two years, we have transformed
Mosaic to become more efficient and made great progress in
optimizing our balance sheet. We continued to grow adjusted
earnings per share, despite notably weaker crop nutrient prices and
a challenging macroeconomic environment," said Joc O'Rourke, Mosaic's President and Chief
Executive Officer.
Cash flow from operating activities in the third quarter of 2015
was $184 million, which is down from
$375 million in the prior year
period. Capital expenditures totaled $245
million in the quarter. Mosaic's total cash and cash
equivalents were $1.3 billion, after
setting aside $630 million, which is
committed to be placed into trusts as financial assurance to
support the closure and long-term care of the Company's
phosphogypsum management systems. Long-term debt, including current
maturities, was $3.8 billion as of
September 30, 2015.
"As anticipated, this quarter's results reflect lower sequential
production levels resulting in higher costs per tonne at our potash
and phosphate facilities during a seasonally slow demand period,"
said Rich Mack, Mosaic's Executive
Vice President and Chief Financial Officer. "Cost reduction efforts
and focused execution helped maintain margin rates, which, in
combination with our share repurchases and a lower effective tax
rate, drove an improvement in adjusted earnings per share compared
to a year ago."
Business Highlights – Third Quarter 2015
- The Company's progress against strategic priorities is
positively impacting financial results. During the third quarter
Mosaic delivered:
- MOP cash production costs of $105
per tonne, including $20 per tonne of
brine management expenses, despite a low operating rate during the
current quarter.
- Record International Distribution quarterly sales volumes of
2.0 million tonnes.
- The lowest quarterly Selling, General and Administrative
expenses in the last six years despite an expanded business
footprint.
- Mosaic received the first shipment of prilled sulfur in
preparation for the planned completion of its new sulfur melter in
Florida.
- The Company completed its previously announced $500 million accelerated share repurchase program
and repurchased an additional $75
million during the quarter.
- Mosaic continued to maintain a strong balance sheet, ending the
quarter with $1.3 billion of cash and
cash equivalents on the balance sheet.
- The Company entered into settlement agreements with federal and
state environmental agencies that, when effective, will resolve
claims relating to how Mosaic has managed certain onsite waste
materials at its fertilizer plants in Florida and Louisiana. After the settlement agreements are
effective, Mosaic will deposit approximately $630 million into trusts to provide financial
assurance for estimated future asset retirement obligations.
Phosphates
Phosphates
Results
|
3Q 2015
Actual
|
3Q 2015
Guidance
|
Average DAP Selling
Price
|
$451
|
$435 to
$455
|
Sales
Volume
|
2.1 million
tonnes
|
2.1 to 2.4 million
tonnes
|
Phosphate
Production
|
83% of operational
capacity
|
Mid 80% of
operational capacity
|
"Our Phosphates business continues to deliver year-to-date
earnings growth for Mosaic," Joc
O'Rourke said. "During the third quarter and year-to-date
the business segment has accounted for more than half of Mosaic's
operating earnings. Attractive margins, even in the wake of global
challenges, reflect the constructive nature of the phosphates
industry and Mosaic's leadership position."
Net sales in the Phosphates segment were $1.0 billion for the third quarter, down from
$1.1 billion last year as a result of
both lower sales volumes and lower realized prices. Gross margin
was $199 million, or 19 percent of
net sales, compared to $236 million,
or 21 percent of net sales, for the same period a year ago. The
year-over-year change in gross margin rate is primarily driven by
lower margins on monoammonium phosphates (MAP) and higher
conversion costs per tonne as a result of the Company's decision to
curtail production. Operating earnings were $157 million, down from $188 million in the same quarter last year.
The third quarter average DAP selling price, FOB plant, was
$451 per tonne, compared to
$463 per tonne a year ago. Total
sales volumes in the Phosphates segment were 2.1 million tonnes in
the third quarter, down from 2.2 million tonnes last year.
Mosaic's North American finished phosphate production was 2.4
million tonnes, or 83 percent of operational capacity, compared to
85 percent a year ago.
Potash
Potash
Results
|
3Q 2015
Actual
|
3Q 2015
Guidance
|
Average MOP Selling
Price
|
$265
|
$260 to
$280
|
Sales
Volume
|
1.6 million
tonnes
|
1.6 to 2.0 million
tonnes
|
Potash
Production
|
67% of operational
capacity
|
Mid 60% of
operational capacity
|
"We have taken actions to optimize and right-size our potash
operations," Joc O'Rourke said. "Our
three large Canadian mines provide operating efficiencies and
flexibility needed to vary production depending on market
conditions. As a result, Mosaic's Potash business is well
positioned to generate attractive through-cycle returns."
Net sales in the Potash segment totaled $492 million for the third quarter, down from
$593 million last year, driven by
lower sales volumes and lower average realized prices. Gross margin
was $97 million, or 20 percent of net
sales, compared to $154 million, or
26 percent of net sales a year ago. The year-over-year decrease in
gross margin rate was primarily driven by lower average realized
prices. Higher Canadian resource taxes and royalties were more than
offset by lower costs as a result of the weaker Canadian dollar and
expense management initiatives. Operating earnings were
$66 million, down from $69 million in the same quarter last year.
The third quarter average MOP selling price, FOB plant, was
$265 per tonne, down from
$291 per tonne a year ago. The Potash
segment total sales volumes for the third quarter were 1.6 million
tonnes, compared to 1.8 million tonnes a year ago.
Potash production was 1.8 million tonnes, or 67 percent of
operational capacity, roughly flat with last year.
International Distribution (ID)
ID
Results
|
3Q 2015
Actual
|
3Q 2015
Guidance
|
Sales
Volume
|
2.0 million
tonnes
|
1.9 to 2.2 million
tonnes
|
Gross Margin per
Tonne
|
$30 per
tonne
|
$20 to $26 per
tonne
|
"Brazilian currency volatility and reduced availability of farm
credit resulted in delayed fertilizer demand in the region,"
Joc O'Rourke said. "We remain
optimistic for Brazil's long-term
agricultural future, and for our investments in this important
region. In total, our International Distribution business sold more
tonnes at higher-than-expected margins than last year, capturing
time-place utility in spite of difficult macro-economic
conditions."
Net sales in the International Distribution segment were
$825 million for the third quarter,
up from $684 million last year,
primarily as a result of increased volumes from the ADM
acquisition. Gross margin was $61
million, or seven percent of net sales, compared to
$51 million, or seven percent of net
sales for the same period a year ago. Operating earnings were
$44 million, up from $30 million in the same quarter last year,
reflecting a larger business footprint in Latin America.
The third quarter average selling price was $400 per tonne, compared to $481 per tonne a year ago. International
Distribution segment total sales volumes were 2.0 million tonnes,
up from 1.4 million tonnes last year.
Other
SG&A expenses were $77 million
for the third quarter, down from $84
million a year ago, in part reflecting on-going progress
against cost saving initiatives.
Provision for income taxes in the third quarter includes a
$15 million benefit related to the
reduction of the full year estimated effective tax rate to mid to
high teens, excluding discrete items.
Financial Guidance
"Mosaic maintained and will continue to maintain discipline by
matching production to expected demand, and our fourth quarter
guidance clearly reflects this philosophy," said Joc O'Rourke. "Longer term, stable and
profitable 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 1.9 to 2.2 million tonnes for the fourth quarter of
2015, compared to 2.4 million tonnes last year. Mosaic's realized
DAP price, FOB plant, is estimated to range from $410 to $440 per tonne for the fourth quarter.
The segment gross margin rate is estimated to be in the high teens
and the operating rate is expected to be around 80 percent.
Total sales volumes for the Potash segment are expected to range
from 1.8 to 2.1 million tonnes for the fourth quarter of 2015,
compared to 2.3 million tonnes last year. Mosaic's realized MOP
price, FOB plant, is estimated to range from $235 to $255 per tonne. Mosaic's gross margin
rate in the segment is expected to be in the mid 20 percent range
during the fourth quarter, reflecting the decision to operate at
lower production rates due to softer demand conditions. The
Company's operating rate is expected to be around 70 percent, down
from 91 percent last year.
Total sales volumes for the International Distribution segment
are expected to range from 1.3 to 1.6 million tonnes for the fourth
quarter of 2015, compared to 1.1 million tonnes last year. The
segment gross margin per tonne is estimated to be in the range of
$23 to $28 per tonne.
For the 2015 full year guidance, Mosaic updates the following
estimates:
- Canadian resource taxes and royalties to be in the range of
$265 to $295 million, compared to
prior guidance of $310 to $350
million.
- Capital expenditures and investments to be approximately
$1.1 to $1.2 billion, compared to
prior guidance of $1.1 to $1.3
billion.
- Brine management costs to be in the range of $170 to $180 million, compared to prior guidance
of $180 to $200 million.
- SG&A expenses in the $350 to $370
million range, compared to prior guidance of $360 to $380 million.
- The effective tax rate to be in the mid to high teens,
excluding discrete items, compared to the prior estimate of 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, November 3, 2015, at 9:00 a.m. EST to discuss third 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 Mosaic's 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 September 30, 2015, the Company reported the following
notable items which, combined, negatively impacted earnings per
share by $0.17:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$
|
(49)
|
|
|
$
|
8
|
|
|
$
|
(0.12)
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
(22)
|
|
|
4
|
|
|
(0.05)
|
|
Discrete tax
items
|
|
Consolidated
|
|
Provision for income
taxes
|
|
—
|
|
|
3
|
|
|
0.01
|
|
Write-off of fixed
assets
|
|
Phosphates
|
|
Other operating
expense
|
|
(10)
|
|
|
2
|
|
|
(0.02)
|
|
Consumption tax
refund
|
|
Potash
|
|
Cost of goods
sold
|
|
6
|
|
|
(1)
|
|
|
0.01
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
(75)
|
|
|
$
|
16
|
|
|
$
|
(0.17)
|
|
For the three months
ended September 30, 2014, the Company reported the following
notable items which, combined, negatively 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
|
|
Gain (loss) in value
of share repurchase agreement
|
|
$
|
5
|
|
|
$
|
—
|
|
|
$
|
0.01
|
|
Severance
|
|
Corporate &
Other
|
|
Other operating
expense
|
|
(3)
|
|
|
1
|
|
|
(0.01)
|
|
Foreign currency
transaction (loss) gain
|
|
Consolidated
|
|
Foreign currency
transaction (loss) gain
|
|
27
|
|
|
(8)
|
|
|
0.06
|
|
Unrealized gain
(loss) on derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
(23)
|
|
|
6
|
|
|
(0.04)
|
|
Adjustments to
Argentine assets held for sale
|
|
International
Distribution
|
|
Other operating
expense
|
|
18
|
|
|
(5)
|
|
|
0.03
|
|
Gain on sale of
Hersey
|
|
Potash
|
|
Other operating
expense
|
|
14
|
|
|
(4)
|
|
|
0.03
|
|
Carlsbad
restructuring expense
|
|
Potash
|
|
Restructuring
expense
|
|
(67)
|
|
|
28
|
|
|
(0.10)
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
(29)
|
|
|
$
|
18
|
|
|
$
|
(0.02)
|
|
Condensed
Consolidated Statements of Earnings
|
(in millions,
except per share amounts)
|
|
|
|
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
|
$
|
2,105.5
|
|
|
$
|
2,250.7
|
|
|
$
|
6,732.1
|
|
|
$
|
6,677.2
|
|
Cost of goods
sold
|
|
1,770.2
|
|
|
1,836.0
|
|
|
5,369.7
|
|
|
5,329.7
|
|
Gross
margin
|
|
335.3
|
|
|
414.7
|
|
|
1,362.4
|
|
|
1,347.5
|
|
Selling, general and
administrative expenses
|
|
76.6
|
|
|
83.9
|
|
|
266.3
|
|
|
291.3
|
|
Gain on assets sold
and to be sold
|
|
—
|
|
|
(31.7)
|
|
|
—
|
|
|
(26.1)
|
|
Carlsbad
restructuring expense
|
|
—
|
|
|
67.0
|
|
|
—
|
|
|
67.0
|
|
Other operating
expense
|
|
12.7
|
|
|
18.2
|
|
|
21.6
|
|
|
68.1
|
|
Operating
earnings
|
|
246.0
|
|
|
277.3
|
|
|
1,074.5
|
|
|
947.2
|
|
Gain (loss) in value
of share repurchase agreement
|
|
—
|
|
|
5.3
|
|
|
—
|
|
|
(60.2)
|
|
Interest expense,
net
|
|
(24.2)
|
|
|
(25.2)
|
|
|
(79.0)
|
|
|
(76.6)
|
|
Foreign currency
transaction (loss) gain
|
|
(48.6)
|
|
|
27.1
|
|
|
(19.4)
|
|
|
31.8
|
|
Other (expense)
income
|
|
(1.1)
|
|
|
0.1
|
|
|
(14.5)
|
|
|
(6.1)
|
|
Earnings from
consolidated companies before income taxes
|
|
172.1
|
|
|
284.6
|
|
|
961.6
|
|
|
836.1
|
|
Provision for income
taxes
|
|
10.1
|
|
|
77.6
|
|
|
113.4
|
|
|
157.7
|
|
Earnings from
consolidated companies
|
|
162.0
|
|
|
207.0
|
|
|
848.2
|
|
|
678.4
|
|
Equity in net
earnings of nonconsolidated companies
|
|
(1.3)
|
|
|
(4.1)
|
|
|
(1.9)
|
|
|
(9.6)
|
|
Net earnings
including noncontrolling interests
|
|
160.7
|
|
|
202.9
|
|
|
846.3
|
|
|
668.8
|
|
Less: Net earnings
attributable to noncontrolling interests
|
|
0.7
|
|
|
1.0
|
|
|
0.9
|
|
|
0.9
|
|
Net earnings
attributable to Mosaic
|
|
$
|
160.0
|
|
|
$
|
201.9
|
|
|
$
|
845.4
|
|
|
$
|
667.9
|
|
Diluted net earnings
per share attributable to Mosaic
|
|
$
|
0.45
|
|
|
$
|
0.54
|
|
|
$
|
2.33
|
|
|
$
|
1.72
|
|
Diluted weighted
average number of shares outstanding
|
|
356.0
|
|
|
375.9
|
|
|
362.3
|
|
|
377.0
|
|
Condensed
Consolidated Balance Sheets
|
(in millions,
except per share amounts)
|
|
|
|
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
|
|
September 30,
2015
|
|
December
31, 2014
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,284.9
|
|
|
$
|
2,374.6
|
|
Receivables,
net
|
|
675.1
|
|
|
754.4
|
|
Inventories
|
|
1,549.5
|
|
|
1,718.3
|
|
Deferred income
taxes
|
|
175.0
|
|
|
148.7
|
|
Other current
assets
|
|
578.5
|
|
|
368.2
|
|
Total current
assets
|
|
4,263.0
|
|
|
5,364.2
|
|
Property, plant and
equipment, net
|
|
8,734.0
|
|
|
9,313.9
|
|
Investments in
nonconsolidated companies
|
|
876.1
|
|
|
849.8
|
|
Goodwill
|
|
1,625.0
|
|
|
1,806.5
|
|
Deferred income
taxes
|
|
423.6
|
|
|
394.4
|
|
Other assets
(including cash set aside to fund RCRA)
|
|
1,196.2
|
|
|
554.2
|
|
Total
assets
|
|
$
|
17,117.9
|
|
|
$
|
18,283.0
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
|
$
|
18.0
|
|
|
$
|
13.5
|
|
Current maturities of
long-term debt
|
|
42.2
|
|
|
41.0
|
|
Structured accounts
payable arrangements
|
|
257.9
|
|
|
237.7
|
|
Accounts
payable
|
|
657.0
|
|
|
559.6
|
|
Accrued
liabilities
|
|
896.3
|
|
|
726.1
|
|
Deferred income
taxes
|
|
—
|
|
|
3.7
|
|
Accrued income
taxes
|
|
0.1
|
|
|
18.8
|
|
Total current
liabilities
|
|
1,871.5
|
|
|
1,600.4
|
|
Long-term debt, less
current maturities
|
|
3,738.1
|
|
|
3,778.0
|
|
Deferred income
taxes
|
|
895.3
|
|
|
984.0
|
|
Other noncurrent
liabilities
|
|
986.0
|
|
|
1,200.0
|
|
Equity:
|
|
|
|
|
Preferred Stock,
$0.01 par value, 15,000,000 shares authorized, none issued and
outstanding as of September 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 September 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 September 30, 2015 and December 31,
2014
|
|
—
|
|
|
—
|
|
Common Stock, $0.01
par value, 1,000,000,000 shares authorized, 370,498,658 shares
issued and 335,316,367 shares outstanding as of September 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
|
|
0.9
|
|
|
4.2
|
|
Retained
earnings
|
|
11,058.5
|
|
|
11,168.9
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,448.7)
|
|
|
(473.7)
|
|
Total Mosaic
stockholders' equity
|
|
9,614.3
|
|
|
10,703.1
|
|
Noncontrolling
interests
|
|
12.7
|
|
|
17.5
|
|
Total
equity
|
|
9,627.0
|
|
|
10,720.6
|
|
Total liabilities and
equity
|
|
$
|
17,117.9
|
|
|
$
|
18,283.0
|
|
Condensed
Consolidated Statements of Cash Flows
|
(in millions,
except per share amounts)
|
|
|
|
|
|
The Mosaic
Company
|
(unaudited)
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net cash provided by
operating activities
|
|
184.0
|
|
|
375.2
|
|
|
$
|
1,520.7
|
|
|
$
|
1,779.8
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(245.3)
|
|
|
(188.4)
|
|
|
(702.2)
|
|
|
(677.3)
|
|
Proceeds from sale of
business
|
|
—
|
|
|
55.0
|
|
|
—
|
|
|
55.0
|
|
Restricted
cash
|
|
(630.0)
|
|
|
—
|
|
|
(630.0)
|
|
|
—
|
|
Acquisition of
business
|
|
—
|
|
|
(22.2)
|
|
|
—
|
|
|
(1,375.8)
|
|
Proceeds from
adjustment to acquisition of business
|
|
—
|
|
|
—
|
|
|
47.9
|
|
|
—
|
|
Investments in
nonconsolidated companies
|
|
—
|
|
|
(2.4)
|
|
|
(125.0)
|
|
|
(152.0)
|
|
Return of
investment
|
|
54.4
|
|
|
—
|
|
|
54.4
|
|
|
—
|
|
Other
|
|
(1.7)
|
|
|
(0.1)
|
|
|
6.0
|
|
|
(2.6)
|
|
Net cash used in
investing activities
|
|
(822.6)
|
|
|
(158.1)
|
|
|
(1,348.9)
|
|
|
(2,152.7)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Payments of
short-term debt
|
|
(152.2)
|
|
|
(95.5)
|
|
|
(297.0)
|
|
|
(219.4)
|
|
Proceeds from
issuance of short-term debt
|
|
144.0
|
|
|
83.2
|
|
|
302.5
|
|
|
186.0
|
|
Payments of
structured accounts payable arrangements
|
|
(69.3)
|
|
|
(48.0)
|
|
|
(311.4)
|
|
|
(120.9)
|
|
Proceeds from
structured accounts payable arrangements
|
|
185.8
|
|
|
161.4
|
|
|
329.8
|
|
|
253.0
|
|
Payments of long-term
debt
|
|
(56.0)
|
|
|
(0.5)
|
|
|
(58.4)
|
|
|
(1.5)
|
|
Proceeds from
issuance of long-term debt
|
|
2.1
|
|
|
803.1
|
|
|
5.9
|
|
|
807.2
|
|
Proceeds from stock
option exercises
|
|
1.1
|
|
|
1.0
|
|
|
5.3
|
|
|
2.3
|
|
Repurchases of
stock
|
|
(74.9)
|
|
|
(375.0)
|
|
|
(709.4)
|
|
|
(2,507.7)
|
|
Cash dividends
paid
|
|
(98.3)
|
|
|
(93.8)
|
|
|
(287.8)
|
|
|
(288.6)
|
|
Other
|
|
(8.8)
|
|
|
0.8
|
|
|
(8.3)
|
|
|
0.2
|
|
Net cash used in
financing activities
|
|
(126.5)
|
|
|
436.7
|
|
|
(1,028.8)
|
|
|
(1,889.4)
|
|
Effect of exchange
rate changes on cash
|
|
(159.9)
|
|
|
(50.2)
|
|
|
(232.7)
|
|
|
(60.2)
|
|
Net change in cash
and cash equivalents
|
|
(925.0)
|
|
|
603.6
|
|
|
(1,089.7)
|
|
|
(2,322.5)
|
|
Cash and cash
equivalents - beginning of period
|
|
2,209.9
|
|
|
2,367.0
|
|
|
2,374.6
|
|
|
5,293.1
|
|
Cash and cash
equivalents - end of period
|
|
$
|
1,284.9
|
|
|
$
|
2,970.6
|
|
|
$
|
1,284.9
|
|
|
$
|
2,970.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Use of Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with
U.S. generally accepted accounting principles
("GAAP"), the Company has presented gross margin
excluding Canadian resource taxes and royalties
("CRT") for Potash and adjusted diluted earnings per
share, each of 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 GAAP. Neither gross margin excluding CRT nor adjusted diluted
earnings per share is a measure of financial performance under
GAAP. Because not all companies use identical calculations,
investors should consider that Mosaic's calculations may not be
comparable to other similarly titled measures presented by other
companies. Gross margin excluding CRT and adjusted diluted earnings
per share should not be considered as substitutes for, or superior
to, measures of financial performance prepared in accordance with
GAAP.
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.
Management believes that adjusted diluted earnings per share
provides securities analysts, investors and others, in addition to
management, with useful supplemental information regarding our
performance by excluding certain items that may not be indicative
of or are unrelated to our core operating results. Management
utilizes adjusted diluted earnings per share in analyzing and
assessing the Company's overall performance, for financial and
operating decision-making, and to forecast and plan for future
periods. Adjusted diluted earnings per share also assists our
management in comparing our and our competitors' operating
results.
Potash Gross
Margin, Excluding Resource Taxes and Royalties,
Calculation
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Sales
|
|
$
|
491.5
|
|
|
$
|
593.0
|
|
|
$
|
1,874.5
|
|
|
$
|
2,088.5
|
|
Gross
margin
|
|
96.9
|
|
|
154.1
|
|
|
633.7
|
|
|
596.4
|
|
Canadian resource
taxes
|
|
59.1
|
|
|
45.6
|
|
|
192.1
|
|
|
120.7
|
|
Canadian
royalties
|
|
6.7
|
|
|
5.5
|
|
|
27.0
|
|
|
18.6
|
|
Gross margin,
excluding Canadian resource taxes and royalties (CRT)
|
|
$
|
162.7
|
|
|
$
|
205.2
|
|
|
$
|
852.8
|
|
|
$
|
735.7
|
|
Gross margin
percentage, excluding CRT
|
|
33.1
|
%
|
|
34.6
|
%
|
|
45.5
|
%
|
|
35.2
|
%
|
Reconciliation of
Adjusted Diluted Earnings Per Share
|
|
|
|
Three months ended
September 30,
|
|
2015
|
|
2014
|
|
|
|
|
Diluted earnings
per share, as reported
|
$0.45
|
|
$0.54
|
|
|
|
|
Items included in
earnings per share:
|
|
|
|
Foreign currency
transaction (gain) loss
|
0.12
|
|
(0.06)
|
Unrealized (gain)
loss on derivatives
|
0.05
|
|
0.04
|
Discrete tax
items
|
(0.01)
|
|
—
|
Write-off of fixed
assets
|
0.02
|
|
—
|
Consumption tax
refund
|
(0.01)
|
|
—
|
Share
repurchase
|
—
|
|
(0.01)
|
Severance
|
—
|
|
0.01
|
Adjustments to
Argentine assets held for sale
|
—
|
|
(0.03)
|
Gain on sale of
Hersey
|
—
|
|
(0.03)
|
Carlsbad
restructuring expense
|
—
|
|
0.10
|
|
|
|
|
Adjusted diluted
earnings per share
|
$0.62
|
|
$0.56
|
Earnings Per Share
Calculation
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net earnings
attributed to Mosaic
|
|
$
|
160.0
|
|
|
$
|
201.9
|
|
|
$
|
845.4
|
|
|
$
|
667.9
|
|
Undistributed
earnings attributable to participating securities
|
|
—
|
|
|
(0.5)
|
|
|
—
|
|
|
(19.2)
|
|
Numerator for basic
and diluted earnings available to common stockholders
|
|
$
|
160.0
|
|
|
$
|
201.4
|
|
|
$
|
845.4
|
|
|
$
|
648.7
|
|
Basic weighted
average number of shares outstanding
|
|
354.3
|
|
|
375.0
|
|
|
360.5
|
|
|
386.6
|
|
Shares subject to
forward contract
|
|
—
|
|
|
(1.0)
|
|
|
—
|
|
|
(11.1)
|
|
Basic weighted
average number of shares outstanding attributable to common
stockholders
|
|
354.3
|
|
|
374.0
|
|
|
360.5
|
|
|
375.5
|
|
Dilutive impact of
share-based awards
|
|
1.7
|
|
|
1.9
|
|
|
1.8
|
|
|
1.5
|
|
Diluted weighted
average number of shares outstanding
|
|
356.0
|
|
|
375.9
|
|
|
362.3
|
|
|
377.0
|
|
Basic net earnings
per share
|
|
$
|
0.45
|
|
|
$
|
0.54
|
|
|
$
|
2.35
|
|
|
$
|
1.73
|
|
Diluted net earnings
per share
|
|
$
|
0.45
|
|
|
$
|
0.54
|
|
|
$
|
2.33
|
|
|
$
|
1.72
|
|
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SOURCE The Mosaic Company