PLYMOUTH, Minn., Aug. 2, 2016 /PRNewswire/ -- The Mosaic Company
(NYSE: MOS) today reported a second quarter 2016 net loss of
$10 million, down from net earnings
of $391 million in the second quarter
of 2015. Results in the quarter included after-tax charges of
$69 million related to actions the
Company has taken to lower spending on capital projects and reduce
expenses. Net loss per share was $0.03 and included a negative impact of
$0.09 from notable items.
Mosaic's net sales in the second quarter of 2016 were
$1.7 billion, down from $2.5 billion last year, reflecting lower potash
and phosphate prices and lower sales volumes. Operating earnings
during the quarter were $12 million,
down from $510 million a year ago.
The decline in operating earnings was driven primarily by lower net
sales and the negative impact of notable items, partially offset by
lower phosphate raw material costs and effective expense
management.
"We are taking the necessary actions to ensure Mosaic remains
competitive across all points of the business cycle," said
Joc O'Rourke, President and Chief
Executive Officer. "While the environment is challenging, we see
signs of stabilization in the second half of the year, with
fertilizer prices bottoming and solid demand for our products. At
the same time, we are taking action to preserve cash and reduce
operating expenses, and believe Mosaic is well positioned to
outperform in better markets."
Cash flow provided by operating activities in the second quarter
of 2016 was $583 million compared to
$603 million in the prior year, as
favorable changes in working capital offset lower earnings. Capital
expenditures plus investments totaled $353
million in the quarter. Mosaic's total cash and cash
equivalents were $1.1 billion and
long-term debt was $3.8 billion as of
June 30, 2016.
"We are focused on optimizing cash flow and protecting our
balance sheet," said Rich Mack,
Mosaic's Executive Vice President and Chief Financial
Officer. "At the same time, we continue to look for new
growth opportunities during the bottom part of the cycle."
Phosphates
Phosphates
Results
|
2Q 2016
Actual
|
2Q 2016
Guidance
|
Average DAP Selling
Price
|
$343
|
$335 to
$355
|
Sales
Volume
|
2.4 million
tonnes
|
2.3 to 2.6 million
tonnes
|
Phosphate
Production
|
82% of operational
capacity
|
Around 80% of
operational capacity
|
"Our phosphate business results improved from the first quarter
despite a weak pricing environment and reduced operating rates,
which is a testament to our efforts to reduce costs," O'Rourke
said. "We expect a stronger second half of 2016, with increased
shipments and improved profitability."
Net sales in the Phosphates segment were $976 million for the second quarter, down from
$1.4 billion last year, driven by
both lower prices of finished product and lower sales volumes.
Gross margin was $100 million, or ten
percent of net sales, compared to $296
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 lower average selling prices, higher phosphate rock costs
and lower operating rate, partially offset by lower realized
ammonia and sulfur costs and our efforts to reduce costs.
The second quarter average DAP selling price, FOB plant, was
$343 per tonne, compared to
$450 per tonne a year ago. Phosphates
segment total sales volumes were 2.4 million tonnes, down from 2.8
million tonnes last year.
Mosaic's North American finished phosphate production was 2.4
million tonnes, or 82 percent of operational capacity, compared to
2.5 million tonnes, or 86 percent a year ago.
Potash
Potash
Results
|
2Q 2016
Actual
|
2Q 2016
Guidance
|
Average MOP Selling
Price
|
$178
|
$180 to
$200
|
Sales
Volume
|
2.0 million
tonnes
|
1.9 to 2.2 million
tonnes
|
Potash
Production
|
67% of operational
capacity
|
Around 70% of
operational capacity
|
"Delays in signing India and
China contracts impacted both
buying activity and realized prices. As a result, sales volumes
were below last year's levels and we operated our facilities at
reduced rates," O'Rourke said. "Our decision to idle the
Colonsay mine is expected to
result in lower unit costs and to preserve cash in the second half
of 2016, while still allowing Mosaic to serve our customers."
Net sales in the Potash segment totaled $457 million for the second quarter, down from
$730 million last year, driven by
lower average realized prices and lower sales volumes. Gross margin
was $53 million, or 12 percent of net
sales, compared to $295 million in
the year ago period. The year-over-year decrease in gross
margin was driven by lower selling prices and a lower operating
rate, partially offset by lower Canadian resource taxes ("CRT").
The current period CRT expense includes a catch-up accrual of
$10 million.
The second quarter average MOP selling price, FOB plant, was
$178 per tonne, down from
$280 per tonne a year ago. The Potash
segment's total sales volumes for the second quarter were 2.0
million tonnes, compared to 2.3 million tonnes a year ago.
Potash production was 1.8 million tonnes, or 67 percent of
operational capacity, down from 2.4 million tonnes, or 90 percent
of operational capacity a year ago, reflecting Mosaic's previously
announced plan to reduce production to meet current market
demand.
International Distribution (ID)
ID
Results
|
2Q 2016
Actual
|
2Q 2016
Guidance
|
Sales
Volume
|
1.4 million
tonnes
|
1.4 to 1.6 million
tonnes
|
Gross Margin per
Tonne
|
$3 per
tonne
|
Low single
digits
|
"The Brazilian agricultural industry is a bright spot in
Brazil's economy, with continued
strength in grower economics expected to drive near record and
record use of fertilizers in 2016 and 2017, respectively," said
O'Rourke. "With our large footprint in the region, Mosaic is well
positioned to benefit from the growth."
Net sales in the International Distribution segment were
$534 million for the second quarter,
down from $637 million last year,
primarily as a result of lower average selling prices. Gross margin
was $5 million, or one percent of net
sales, compared to $29 million, or
four percent of net sales, for the same period a year ago. In
addition to declining nutrient prices, strengthening of the
Brazilian real also negatively impacted inventory carrying values,
with an offsetting currency impact reported below the gross margin
line.
The second quarter average selling price was $374 per tonne compared to $427 per tonne a year ago. International
Distribution segment total sales volumes were 1.4 million tonnes,
down from 1.5 million tonnes last year.
Other
SG&A expenses were $73 million for the second quarter, down from
$89 million last year, benefitting
from the Company's ongoing expense management initiatives.
The support function reductions executed in the quarter resulted in
a severance charge of $11
million.
The effective tax rate in the quarter was negative. The
provision for income taxes in the second quarter included a
$14 million benefit related to the
expected reduction of the full-year effective tax rate to be
approximately 10 percent.
Third Quarter Financial Guidance
"With clarity on
China and India potash needs, along with strong global
demand and supply adjustments, we believe potash prices have
bottomed and we see potential for modest price increases in the
second half of the year," said O'Rourke.
Total sales volumes for the Phosphates segment are expected to
range from 2.4 to 2.7 million tonnes for the third quarter of 2016,
compared to 2.0 million tonnes last year. Mosaic's realized DAP
price, FOB plant, is estimated to range from $310 to $340 per tonne. The segment gross margin
rate is estimated to be around 10 percent, and the operating rate
is expected to be approximately 85 percent.
Total sales volumes for the Potash segment are expected to range
from 1.8 to 2.1 million tonnes for the third quarter of 2016,
compared to 1.6 million tonnes last year. Mosaic's realized MOP
price, FOB plant, is estimated to range from $160 to $175 per tonne and the gross margin rate
is estimated to be in the mid-single digits. The operating
rate is expected to be approximately 65 percent.
Total sales volumes for the International Distribution segment
are expected to range from 2.1 to 2.4 million tonnes for the third
quarter of 2016, compared to 2.0 million tonnes last year. The
segment gross margin is estimated to be in the $15 to $20 dollar per tonne range.
For calendar year 2016, Mosaic updated its guidance as
follows:
- SG&A expense to range from $330 to
$350 million, down from the initial guidance of $350 to $370 million.
- Brine management costs to range from $150 to $170 million, down from $160 to $180 million.
- Capital expenditures to range from $750
to $850 million, down from the Company's most recent
guidance of $800 to $900
million. Equity investments in the Ma'aden Wa'ad Al
Shamal Phosphate Company are $220
million.
- CRT to range from $95 to $110
million; the Company will no longer provide CRT rate
guidance.
- The effective tax rate to be approximately 10 percent, down
from prior guidance of upper teens.
All other full year 2016 guidance remains unchanged:
- Phosphates sales volumes to range from 9.0 to 9.75 million
tonnes.
- Potash sales volumes to range from 7.5 to 8.0 million
tonnes.
- International Distribution sales volumes to range from 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 Tuesday, August 2, 2016, at 9:00 a.m. EDT to discuss second quarter 2016
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 MWSPC) and
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 MWSPC 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 MWSPC and any future
changes in those plans; difficulties with realization of the
benefits of our long term natural gas based pricing ammonia supply
agreement with CF Industries, Inc., including the risk that
the cost savings initially anticipated from the agreement may not
be fully realized over its term or that the price of natural gas or
ammonia during the term are at levels at which the pricing is
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 MWSPC,
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 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, sinkholes 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, 2016, the Company
reported the following notable items which, combined, negatively
impacted earnings per share by $0.09:
|
|
|
|
|
|
Amount
|
|
Tax
effect
|
|
EPS impact
|
Description
|
|
Segment
|
|
Line
item
|
|
(in millions)
|
|
(in millions)
|
|
(per share)
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
transaction gain
|
|
Consolidated
|
|
Foreign currency
transaction gain (loss)
|
|
$
|
15
|
|
|
$
|
(1)
|
|
|
$
|
0.04
|
|
Unrealized gain on
derivatives
|
|
Corporate &
Other
|
|
Cost of goods
sold
|
|
30
|
|
|
(3)
|
|
|
0.08
|
|
Discrete tax
items
|
|
Consolidated
|
|
(Provision for)
benefit from income taxes
|
|
—
|
|
|
(5)
|
|
|
(0.01)
|
|
Restructuring
|
|
Consolidated
|
|
Other operating
expense
|
|
(11)
|
|
|
1
|
|
|
(0.03)
|
|
Prince Rupert
write-off
|
|
Potash
|
|
Equity earnings
(loss)
|
|
(24)
|
|
|
8
|
|
|
(0.05)
|
|
Asset
write-off
|
|
Phosphates
|
|
Other operating
expense
|
|
(47)
|
|
|
4
|
|
|
(0.12)
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
(37)
|
|
|
$
|
4
|
|
|
$
|
(0.09)
|
|
Note: The tax effect is calculated based on our estimated
annual effective rate. Our tax rate is impacted by the mix of
earnings in the jurisdictions in which we operate and a benefit
associated with depletion. The tax effect of the Prince Rupert write-off includes an income tax
component of 20.6% which is calculated based on the rate specific
to those earnings, and an impact related to Canadian Resource Tax
of 12.4%.
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 gain (loss)
|
|
Consolidated
|
|
Foreign currency
transaction gain (loss)
|
|
$
|
(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)
benefit from income taxes
|
|
—
|
|
|
10
|
|
|
0.03
|
|
Write down of equity
investment
|
|
Corporate &
Other
|
|
Other
expense
|
|
(8)
|
|
|
—
|
|
|
(0.02)
|
|
Total Notable
Items
|
|
|
|
|
|
$
|
3
|
|
|
$
|
8
|
|
|
$
|
0.03
|
|
Note: The tax effect is calculated based on our estimated
annual effective rate. Our tax rate is impacted by the mix of
earnings in the jurisdictions in which we operate and a benefit
associated with depletion. For the loss on the write-down of an
equity investment we recorded a full valuation allowance and
therefore, there was no tax impact.
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net sales
|
|
$
|
1,674.6
|
|
|
$
|
2,487.5
|
|
|
$
|
3,348.5
|
|
|
$
|
4,626.6
|
|
Cost of goods
sold
|
|
1,520.6
|
|
|
1,879.6
|
|
|
2,957.8
|
|
|
3,599.5
|
|
Gross
margin
|
|
154.0
|
|
|
607.9
|
|
|
390.7
|
|
|
1,027.1
|
|
Selling, general and
administrative expenses
|
|
72.9
|
|
|
89.3
|
|
|
162.7
|
|
|
189.8
|
|
Other operating
expense
|
|
68.8
|
|
|
8.6
|
|
|
52.3
|
|
|
8.8
|
|
Operating
earnings
|
|
12.3
|
|
|
510.0
|
|
|
175.7
|
|
|
828.5
|
|
Interest expense,
net
|
|
(33.5)
|
|
|
(23.5)
|
|
|
(59.7)
|
|
|
(54.8)
|
|
Foreign currency
transaction gain (loss)
|
|
14.7
|
|
|
(16.0)
|
|
|
102.6
|
|
|
29.1
|
|
Other
expense
|
|
(0.7)
|
|
|
(7.8)
|
|
|
(0.2)
|
|
|
(13.4)
|
|
Earnings (loss) from
consolidated companies before income taxes
|
|
(7.2)
|
|
|
462.7
|
|
|
218.4
|
|
|
789.4
|
|
Provision for
(benefit from) income taxes
|
|
(9.8)
|
|
|
72.6
|
|
|
(38.5)
|
|
|
103.3
|
|
Earnings (loss) from
consolidated companies
|
|
2.6
|
|
|
390.1
|
|
|
256.9
|
|
|
686.1
|
|
Equity in net
earnings (loss) of nonconsolidated companies
|
|
(13.7)
|
|
|
0.9
|
|
|
(11.0)
|
|
|
(0.5)
|
|
Net earnings (loss)
including noncontrolling interests
|
|
(11.1)
|
|
|
391.0
|
|
|
245.9
|
|
|
685.6
|
|
Less: Net earnings
(loss) attributable to noncontrolling interests
|
|
(0.9)
|
|
|
0.4
|
|
|
(0.8)
|
|
|
0.2
|
|
Net earnings (loss)
attributable to Mosaic
|
|
$
|
(10.2)
|
|
|
$
|
390.6
|
|
|
$
|
246.7
|
|
|
$
|
685.4
|
|
Diluted net earnings
(loss) per share attributable to Mosaic
|
|
$
|
(0.03)
|
|
|
$
|
1.08
|
|
|
$
|
0.70
|
|
|
$
|
1.88
|
|
Diluted weighted
average number of shares outstanding
|
|
349.8
|
|
|
363.3
|
|
|
351.8
|
|
|
365.5
|
|
Condensed
Consolidated Balance Sheets
|
(in millions,
except per share amounts)
|
|
The Mosaic
Company
|
|
(unaudited)
|
|
|
June 30,
2016
|
|
December 31,
2015
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,059.3
|
|
|
$
|
1,276.3
|
|
Receivables,
net
|
|
399.6
|
|
|
675.0
|
|
Inventories
|
|
1,702.1
|
|
|
1,563.5
|
|
Other current
assets
|
|
631.5
|
|
|
628.6
|
|
Total current
assets
|
|
3,792.5
|
|
|
4,143.4
|
|
Property, plant and
equipment, net
|
|
9,197.5
|
|
|
8,721.0
|
|
Investments in
nonconsolidated companies
|
|
1,043.7
|
|
|
980.5
|
|
Goodwill
|
|
1,667.5
|
|
|
1,595.3
|
|
Deferred income
taxes
|
|
726.5
|
|
|
691.9
|
|
Other
assets
|
|
1,257.1
|
|
|
1,257.4
|
|
Total
assets
|
|
$
|
17,684.8
|
|
|
$
|
17,389.5
|
|
Liabilities and
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Short-term
debt
|
|
$
|
54.0
|
|
|
$
|
25.5
|
|
Current maturities of
long-term debt
|
|
42.3
|
|
|
41.7
|
|
Structured accounts
payable arrangements
|
|
195.5
|
|
|
481.7
|
|
Accounts
payable
|
|
622.6
|
|
|
520.6
|
|
Accrued
liabilities
|
|
988.3
|
|
|
977.5
|
|
Total current
liabilities
|
|
1,902.7
|
|
|
2,047.0
|
|
Long-term debt, less
current maturities
|
|
3,772.6
|
|
|
3,769.5
|
|
Deferred income
taxes
|
|
1,069.6
|
|
|
977.4
|
|
Other noncurrent
liabilities
|
|
945.7
|
|
|
1,030.6
|
|
Equity:
|
|
|
|
|
Preferred Stock,
$0.01 par value, 15,000,000 shares authorized, none issued and
outstanding as of June 30, 2016 and December 31, 2015
|
|
—
|
|
|
—
|
|
Class A Common Stock,
$0.01 par value, none authorized, issued and outstanding as of June
30, 2016, 194,203,987 shares authorized, none issued and
outstanding as of December 31, 2015
|
|
—
|
|
|
—
|
|
Class B Common Stock,
$0.01 par value, none authorized, issued, and outstanding as of
June 30, 2016, 87,008,602 shares authorized, none issued and
outstanding as of December 31, 2015
|
|
—
|
|
|
—
|
|
Common Stock, $0.01
par value, 1,000,000,000 shares authorized, 387,875,113 shares
issued and 349,926,264 shares outstanding as of June 30, 2016,
387,697,547 shares issued and 352,515,256 shares outstanding as of
December 31, 2015
|
|
3.5
|
|
|
3.5
|
|
Capital in excess of
par value
|
|
19.5
|
|
|
6.4
|
|
Retained
earnings
|
|
11,103.0
|
|
|
11,014.8
|
|
Accumulated other
comprehensive income (loss)
|
|
(1,168.3)
|
|
|
(1,492.9)
|
|
Total Mosaic
stockholders' equity
|
|
9,957.7
|
|
|
9,531.8
|
|
Noncontrolling
interests
|
|
36.5
|
|
|
33.2
|
|
Total
equity
|
|
9,994.2
|
|
|
9,565.0
|
|
Total liabilities and
equity
|
|
$
|
17,684.8
|
|
|
$
|
17,389.5
|
|
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,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net cash provided by
operating activities
|
|
583.2
|
|
|
603.3
|
|
|
$
|
849.1
|
|
|
$
|
1,332.2
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
(201.7)
|
|
|
(227.4)
|
|
|
(437.3)
|
|
|
(456.9)
|
|
Proceeds from
adjustment to acquisition of business
|
|
—
|
|
|
—
|
|
|
—
|
|
|
47.9
|
|
Investments in
nonconsolidated companies
|
|
(100.0)
|
|
|
(122.0)
|
|
|
(100.0)
|
|
|
(125.0)
|
|
Investments in
affiliate
|
|
(51.5)
|
|
|
—
|
|
|
(90.0)
|
|
|
—
|
|
Other
|
|
(3.3)
|
|
|
6.0
|
|
|
(3.1)
|
|
|
7.7
|
|
Net cash used in
investing activities
|
|
(356.5)
|
|
|
(343.4)
|
|
|
(630.4)
|
|
|
(526.3)
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
|
|
|
|
Payments of
short-term debt
|
|
(99.6)
|
|
|
(112.1)
|
|
|
(173.7)
|
|
|
(144.8)
|
|
Proceeds from
issuance of short-term debt
|
|
112.5
|
|
|
129.1
|
|
|
202.7
|
|
|
158.5
|
|
Payments of
structured accounts payable arrangements
|
|
(270.3)
|
|
|
(95.5)
|
|
|
(494.6)
|
|
|
(242.1)
|
|
Proceeds from
structured accounts payable arrangements
|
|
110.2
|
|
|
75.3
|
|
|
206.0
|
|
|
148.5
|
|
Payments of long-term
debt
|
|
(0.6)
|
|
|
(1.8)
|
|
|
(1.8)
|
|
|
(2.4)
|
|
Proceeds from
issuance of long-term debt
|
|
—
|
|
|
3.8
|
|
|
—
|
|
|
3.8
|
|
Proceeds from
settlement of swaps
|
|
—
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
Proceeds from stock
option exercises
|
|
1.8
|
|
|
1.3
|
|
|
2.6
|
|
|
4.2
|
|
Repurchases of
stock
|
|
—
|
|
|
(500.1)
|
|
|
(75.0)
|
|
|
(634.5)
|
|
Cash dividends
paid
|
|
(96.2)
|
|
|
(98.1)
|
|
|
(192.4)
|
|
|
(189.5)
|
|
Other
|
|
(0.3)
|
|
|
0.7
|
|
|
(0.5)
|
|
|
0.5
|
|
Net cash used in
financing activities
|
|
(242.5)
|
|
|
(597.4)
|
|
|
(522.5)
|
|
|
(897.8)
|
|
Effect of exchange
rate changes on cash
|
|
17.4
|
|
|
30.0
|
|
|
86.8
|
|
|
(72.8)
|
|
Net change in cash
and cash equivalents
|
|
1.6
|
|
|
(307.5)
|
|
|
(217.0)
|
|
|
(164.7)
|
|
Cash and cash
equivalents - beginning of period
|
|
1,057.7
|
|
|
2,517.4
|
|
|
1,276.3
|
|
|
2,374.6
|
|
Cash and cash
equivalents - end of period
|
|
$
|
1,059.3
|
|
|
$
|
2,209.9
|
|
|
$
|
1,059.3
|
|
|
$
|
2,209.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 ("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 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 calculations may not be comparable to other similarly
titled measures presented by other companies. Gross margin,
excluding CRT should not be considered as a substitute for, or
superior to, gross margin, the most directly comparable measure 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.
Potash Gross
Margin, Excluding Resource Taxes Calculation
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Sales
|
|
$
|
456.9
|
|
|
$
|
730.2
|
|
|
$
|
851.1
|
|
|
$
|
1,383.0
|
|
Gross
margin
|
|
53.0
|
|
|
295.0
|
|
|
151.1
|
|
|
536.9
|
|
Gross margin
percentage
|
|
11.6
|
%
|
|
40.4
|
%
|
|
17.8
|
%
|
|
38.8
|
%
|
Canadian resource
taxes
|
|
38.1
|
|
|
54.9
|
|
|
56.4
|
|
|
133.0
|
|
Gross margin,
excluding Canadian resource taxes (CRT)
|
|
$
|
91.1
|
|
|
$
|
349.9
|
|
|
$
|
207.5
|
|
|
$
|
669.9
|
|
Gross margin
percentage, excluding CRT
|
|
19.9
|
%
|
|
47.9
|
%
|
|
24.4
|
%
|
|
48.4
|
%
|
Earnings Per Share
Calculation
|
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net earnings (loss)
attributable to Mosaic
|
|
$
|
(10.2)
|
|
|
$
|
390.6
|
|
|
$
|
246.7
|
|
|
$
|
685.4
|
|
Basic weighted
average number of shares outstanding
|
|
349.8
|
|
|
361.3
|
|
|
350.6
|
|
|
363.6
|
|
Dilutive impact of
share-based awards
|
|
—
|
|
|
2.0
|
|
|
1.2
|
|
|
1.9
|
|
Diluted weighted
average number of shares outstanding
|
|
349.8
|
|
|
363.3
|
|
|
351.8
|
|
|
365.5
|
|
Basic net earnings
(loss) per share attributable to Mosaic
|
|
$
|
(0.03)
|
|
|
$
|
1.08
|
|
|
$
|
0.70
|
|
|
$
|
1.89
|
|
Diluted net earnings
(loss) per share attributable to Mosaic
|
|
$
|
(0.03)
|
|
|
$
|
1.08
|
|
|
$
|
0.70
|
|
|
$
|
1.88
|
|
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SOURCE The Mosaic Company