Raises Full-Year Adjusted EBITDA and EPS Guidance
PLYMOUTH, Minn.--(BUSINESS WIRE)--
The Mosaic Company (NYSE: MOS) today reported third quarter 2018 net
earnings of $247 million. Adjusted EBITDA(1) during the
quarter was $606 million, up sequentially and year-over-year. Third
quarter diluted earnings per share (EPS) were $0.64, which included a
negative impact of $0.11 per share from notable items, primarily related
to discrete tax items and costs associated with the Vale Fertilizantes
acquisition. Adjusted EPS(1) during the third quarter of 2018
was $0.75, ahead of last year and the second quarter of 2018.
Year-to-date net earnings were $358 million, and adjusted EBITDA(1)
was $1.4 billion, up 71 percent compared to the same period in 2017.
Diluted EPS for the first nine months of 2018 was $0.93, or $1.35
excluding notable items, an increase of 78 percent year-over-year.
Growth in adjusted EBITDA(1) and EPS(1) reflected
enhanced operational leverage across the business, the impact of the
acquisition, integration and transformation in the Mosaic Fertilizantes
segment, as well as improved market conditions.
Highlights:
-
Guiding to full-year adjusted EBITDA(1) in the range of
$1.90 to $2.00 billion, up from the previously increased $1.80 to
$1.95 billion range.
-
Raising full-year adjusted EPS(1) guidance to $1.80 to
$2.00, from $1.45 to $1.80, due to strong underlying business
performance and lowered expected full-year effective tax rate.
-
Delivered on Mosaic Fertilizantes synergy targets with $128 million in
gross realized synergies year-to-date, or $102 million net of costs to
achieve them. Raised full year 2018 net synergy target to $140 to $160
million, and expect to achieve the full $275 million target ahead of
schedule.
-
Completed the commitment to repay $700 million of long-term debt, two
years ahead of the initial 2020 target, resulting in the Company
meeting its through-cycle leverage targets.
(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
“We saw strong fundamentals in the third quarter, and that momentum is
continuing,” said Joc O’Rourke, President and Chief Executive Officer.
“We’ve increased our full year earnings guidance to reflect strong
operational performance across business units, as well as improving
market conditions. Our excellent progress on the transformational
initiatives at Mosaic Fertilizantes is delivering tangible results to
the bottom line.”
Mosaic’s net sales in the third quarter of 2018 were $2.9 billion,
compared to $2.0 billion last year, primarily driven by the acquisition
of Vale Fertilizantes and higher average sales prices in all three
operating segments. Operating earnings during the quarter were $393
million, up from $214 million a year ago, driven by higher gross margins
in all segments.
Cash flow from operating activities in the third quarter of 2018 was
$524 million compared to $136 million in the prior year. Capital
expenditures totaled $241 million in the quarter. The Company completed
$400 million of debt retirement in the quarter, $200 million of which
was previously announced. Mosaic’s total cash and cash equivalents,
excluding restricted cash, were $1.0 billion, largely unchanged from a
quarter ago, despite debt retirement. Long-term debt was $4.6 billion as
of September 30, 2018.
“Mosaic has fulfilled our commitment to pay down $700 million of debt by
2020,” said Joc O’Rourke. “Our lower debt levels and stronger earnings
outlook bring Mosaic’s balance sheet closer to our through-cycle
targets. As we look ahead, our capital priorities remain unchanged:
maintain a strong balance sheet and sustain our assets to ensure
reliability and the safety of our people, and maintain a balanced
approach to investing to grow the business and returning capital to
shareholders.”
| Phosphates Results* |
|
| 3Q 2018 |
|
|
| 2Q 2018 |
|
|
| 3Q 2017 |
| | | | | | | | | | |
|
|
Sales Volumes million tonnes
| | |
2.2
| | | |
2.3
| | | |
2.1
|
| | | | | | | | | | |
|
|
Gross Margin (GAAP) per tonne
| | | $80 | | | | $67 | | | | $32 |
| | | | | | | | | | |
|
|
Adjusted Gross Margin (non-GAAP) per tonne(1) | | | $80 | | | | $70 | | | | $32 |
| | | | | | | | | | |
|
*Tonnes = finished product tonnes
(1) See “Non-GAAP
Financial Measures” for additional information and reconciliation.
Net sales in the Phosphates segment were $1.0 billion for the third
quarter, up from $779 million last year, driven by higher average sales
prices and higher sales volumes. Gross margin was $180 million for the
third quarter compared to $67 million for the same period a year ago.
The increase in the third quarter gross margin was primarily driven by
higher average sales prices and operational improvements that lowered
controllable operating costs in the segment. Last year’s period sales
volumes and gross margin included a negative impact from Hurricane Irma
of 220,000 tonnes and $26 million respectively. The current year period
reflects the impact of the Plant City idling.
| Potash Results |
|
| 3Q 2018 |
|
|
| 2Q 2018 |
|
|
| 3Q 2017 |
| | | | | | | | | | |
|
|
Sales Volumes million tonnes
| | |
2.4
| | | |
2.4
| | | |
2.2
|
| | | | | | | | | | |
|
|
Gross Margin (GAAP) per tonne
| | | $66 | | | | $56 | | | | $44 |
| | | | | | | | | | |
|
|
Adjusted Gross Margin (non-GAAP) per tonne(1) | | | $66 | | | | $58 | | | | $49 |
| | | | | | | | | | |
|
(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
Net sales in the Potash segment totaled $609 million for the third
quarter, up from $474 million last year, driven by both higher average
sales prices and higher sales volumes. Gross margin was $161 million for
the third quarter compared to $99 million for the same period a year ago.
The improvement in gross margin was primarily driven by higher average
sales prices, partially offset by timing of turn-around activities. MOP
cash costs, including brine management costs, were $79 per tonne.
Excluding the 2017 impact related to the resolution of a royalty matter
with the government of Saskatchewan, MOP cash costs of production were
essentially flat to last year’s levels, despite a lower operating rate
due to the timing of planned maintenance turn-arounds in the current
quarter.
| Mosaic Fertilizantes Results* |
|
| 3Q 2018 |
|
|
| 2Q 2018 |
|
|
| 3Q 2017 |
| | | | | | | | | | |
|
|
Sales Volumes million tonnes
| | |
3.6
| | | |
1.8
| | | |
2.2
|
| | | | | | | | | | |
|
|
Gross Margin (GAAP) per tonne
| | | $42 | | | | $29 | | | | $24 |
| | | | | | | | | | |
|
|
Adjusted Gross Margin (non GAAP) per tonne(1) | | | $42 | | | | $29 | | | | $24 |
| | | | | | | | | | |
|
*Tonnes = finished product tonnes
(1) See “Non-GAAP
Financial Measures” for additional information and reconciliation.
Net sales in the Mosaic Fertilizantes segment were $1.4 billion for the
third quarter, up from $806 million last year. Gross margin was $152
million, compared to $52 million for the same period a year ago. The
year-over-year increase in gross margin was primarily driven by the
acquisition of Vale Fertilizantes, as well higher margins in the legacy
distribution business.
Mosaic Fertilizantes achieved $128 million in gross synergies
year-to-date, or $102 million net of costs to achieve them. For the full
year 2018, Mosaic expects $140 to $160 million of net synergies and
expects to achieve its $275 million target well ahead of schedule.
Other
Selling, General and Administrative (SG&A) expenses were $79 million for
the third quarter, up from $66 million last year, primarily as a result
of a larger business in Brazil and higher incentive compensation.
While the reported tax rate during the third quarter of 2018 was 26
percent, excluding discrete items the calculated GAAP effective tax rate
was 19 percent. Mosaic expects to pay minimal cash income taxes in 2018.
Mosaic believes there may be continued volatility in its effective tax
rate due to changing interpretations of the new tax laws and changes in
valuation allowances, but currently expects the 2018 effective tax rate,
excluding discrete items, to be around 20 percent.
Financial Guidance
“While we continue to monitor several risk factors, we are optimistic
about the outlook for our businesses,” O’Rourke said. “Accelerated
Mosaic Fertilizantes synergy capture, continued ramp-up of the Esterhazy
K3 mine and improving market fundamentals put Mosaic in an excellent
position to create sustainable shareholder value over the long term.”
Mosaic has updated earnings guidance ranges:
|
|
|
|
|
|
|
|
|
| $ in billions except per share |
|
| 2018 Guidance |
|
|
| Reported YTD 9/30/2018 |
|
Adjusted EBITDA(1) |
|
| $1.9 - $2.0 |
|
|
| $1.439 |
|
Adjusted earnings per share(1) |
|
| $1.80 - $2.00 |
|
|
| $1.35 |
|
Capital Expenditures
|
|
| $0.9 - $1.1 |
|
|
| $.665 |
(1) See “Non-GAAP Financial Measures” for additional
information and reconciliation.
Assumptions embedded in the full-year guidance include:
|
|
|
|
|
|
|
|
|
| In Millions* |
|
| Full-Year 2018 Assumptions |
|
|
| Reported YTD 9/30/2018 |
|
Potash tonnes sold**
|
|
|
8.6 – 9.0
|
|
|
|
6.5
|
|
Phosphates tonnes sold
|
|
|
8.2 - 8.5
|
|
|
|
6.5
|
|
Mosaic Fertilizantes tonnes sold
|
|
|
8.9 – 9.2
|
|
|
|
7.0
|
|
SG&A Expenses
|
|
| $325 - $350 |
|
|
| $252 |
*Tonnes = finished product tonnes
** Full-year sales volume
reflects ~400,000 tonne reduction from Canpotex’ change in revenue
recognition.
For the fourth quarter of 2018, Mosaic expects:
|
|
|
|
|
|
|
|
|
|
|
| Sales Volumes |
|
|
| Adjusted Gross Margin(1) |
|
|
|
| millions of tonnes* |
|
|
|
|
|
Potash
|
|
|
2.2 – 2.5
|
|
|
| $80 – $90 per tonne
|
|
Phosphates
|
|
|
1.7 – 2.0
|
|
|
| $65 – $75 per tonne
|
|
Mosaic Fertilizantes
|
|
|
1.9 – 2.2
|
|
|
| $35 – $45 per tonne
|
|
Corporate and Other
|
|
|
|
|
|
| $0 – $15 million |
*Tonnes = finished product tonnes
(1) See “Non-GAAP
Financial Measures” for additional information and reconciliation.
The Company’s forecasts assume continued strong market conditions in
potash, as well as high operating rates at the three Canadian mines.
Phosphates segment outlook reflects underlying firmness in supply and
demand dynamics and normal year-end seasonality. In the Mosaic
Fertilizantes segment, the Company expects the impacts of the higher
average realized selling prices to be partially offset by the recent
strengthening of the Brazilian Real relative to the U.S. Dollar. In
addition to synergy capture progress, Mosaic continues to integrate
production and distribution assets to optimize revenues, both of which
are expected to benefit margins in the fourth quarter.
Risks and factors that could impact fourth quarter results are primarily
related to foreign currency fluctuations. Risks also include second crop
planting intentions in Brazil and logistics related disruptions in
potash.
The Company is not providing forward looking guidance for U.S. GAAP
reported earnings per diluted share or a quantitative reconciliation of
forward-looking adjusted earnings per diluted share of non-GAAP adjusted
EBITDA. Please see "Non-GAAP Financial Measures" for additional
information. EPS guidance is based on preliminary estimates of asset
values and depreciation for the acquired Vale Fertilizantes business
which are expected to be finalized during 2018.
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 6, 2018, at
9:00 a.m. Eastern Time to discuss third quarter 2018 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 release 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 anticipated
benefits and synergies of our acquisition of the global phosphate and
potash operations of Vale S.A. previously conducted through Vale
Fertilizantes S.A. (which, when combined with our legacy distribution
business in Brazil, is now known as Mosaic Fertilizantes) (the
“Transaction”), 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: difficulties with realization of the
benefits and synergies of the Transaction, including the risks that the
acquired business may not be integrated successfully or that the
anticipated synergies or cost or capital expenditure savings from the
Transaction may not be fully realized or may take longer to realize than
expected, including because of political and economic instability in
Brazil or changes in government policy in Brazil such as costs
associated with the new freight tables; 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 performance of the
Wa’ad Al Shamal Phosphate Company (also known as MWSPC), 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, and
the future success of current plans for MWSPC and any future changes in
those plans; the risk that protests against natural resource companies
in Peru extend to or impact the Miski Mayo mine, which is operated by an
entity in which we are the majority owner; 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; 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,
carbon taxes or other 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, Canada or Brazil, 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.
Non-GAAP Financial Measures
This press release
includes the presentation and discussion of non-GAAP diluted net
earnings per share guidance, or adjusted EPS, non-GAAP gross margin per
tonne, or adjusted gross margin per tonne, and non-GAAP EBITDA, and
adjusted EBITDA, referred to as non-GAAP financial measures.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, or GAAP.
Non-GAAP financial measures should not be considered as substitutes for,
or superior to, measures of financial performance prepared in accordance
with GAAP. In addition, because non-GAAP measures are not determined in
accordance with GAAP, they are thus susceptible to varying
interpretations and calculations and may not be comparable to other
similarly titled measures of other companies. Adjusted metrics,
including adjusted EPS, adjusted gross margin, and adjusted EBITDA are
calculated by excluding the impact of notable items from the GAAP
measure. Notable items impact on gross margin and EBITDA is pretax.Notable
items impact on diluted net earnings per share is calculated as the
notable item amount plus income tax effect, based on expected annual
effective tax rate, divided by diluted weighted average shares.
Management believes that these adjusted measures provide securities
analysts, investors, management and others 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 these adjusted measures in analyzing and
assessing Mosaic’s overall performance and financial trends, for
financial and operating decision-making, and to forecast and plan for
future periods. These adjusted measures also assist our management in
comparing our and our competitors' operating results. We are not
providing forward looking guidance for U.S. GAAP reported diluted net
earnings per share, gross margin per tonne, or a quantitative
reconciliation of forward-looking adjusted EPS, adjusted gross margin
and adjusted EBITDA because we are unable to predict with reasonable
certainty our notable items without unreasonable effort. Historically,
our notable items have included, but are not limited to, foreign
currency transaction gain or loss, unrealized gain or loss on
derivatives, acquisition-related fees, discrete tax items, contingencies
and certain other gains or losses. These items are uncertain, depend on
various factors, and could have a material impact on U.S. GAAP reported
results for the guidance period.Reconciliations for current and
historical periods beginning with the quarter ended December 31, 2016
for consolidated adjusted EPS and adjusted EBITDA, as well as segment
adjusted EBITDA and adjusted gross margin per tonne are provided in the
Selected Calendar Quarter Financial Information performance data for the
related periods.This information is available on our website at www.mosaicco.com
in the “Financial Information – Quarterly Earnings” section under the
“Investors” tab.
For the three months ended September 30, 2018, the Company
reported the following notable items which, combined, negatively
impacted earnings per share by $0.11:
|
|
| |
| |
| |
| |
| |
| | | | | | 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)
| |
$
|
(2
|
)
| |
$
|
—
| | |
$
|
—
| |
|
Unrealized gain (loss) on derivatives
| |
Corporate and Other
| |
Cost of goods sold
| |
11
| | |
(2
|
)
| |
0.02
| |
|
Integration costs
| |
Corporate and Other
| |
Other operating income (expense)
| |
(3
|
)
| |
1
| | |
(0.01
|
)
|
|
Costs to capture synergies
| |
Mosaic Fertilizantes
| |
Other operating income (expense)
| |
(4
|
)
| |
1
| | |
(0.01
|
)
|
|
Realized loss on RCRA Trust Securities | |
Phosphates
| |
Other non-operating income (expense)
| |
(7
|
)
| |
1
| | |
(0.01
|
)
|
|
Discrete tax items
| |
Consolidated
| |
(Provision for) benefit from income taxes
| |
—
| | |
(29
|
)
| |
(0.08
|
)
|
|
Earn-out obligation
| |
Corporate and Other
| |
Other operating income (expense)
| |
(8
|
)
| |
—
|
| |
(0.02
|
)
|
|
Total Notable Items
| | | | | |
$
|
(13
|
)
| |
$
|
(28
|
)
| |
$
|
(0.11
|
)
|
| | | | | | | | | |
|
For the three months ended September 30, 2017, the Company
reported the following notable items which, combined, positively
impacted earnings per share by $0.22:
|
| | | | | | | | | |
|
| | | | | | 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)
| |
$
|
58
| | |
$
|
—
| | |
$
|
0.17
| |
|
Unrealized gain on derivatives
| |
Corporate and Other
| |
Cost of goods sold
| |
2
| | |
—
| | |
0.01
| |
|
Fees related to purchase of Vale Fertilizantes
| |
Corporate and Other
| |
Other operating expense
| |
(6
|
)
| |
—
| | |
(0.02
|
)
|
|
Discrete tax items
| |
Consolidated
| |
(Provision for) benefit from income taxes
| |
—
| | |
5
| | |
0.01
| |
|
Pre-issuance hedging loss
| |
Consolidated
| |
Interest expense, net
| |
(2
|
)
| |
—
| | |
(0.01
|
)
|
|
Gain on sale of land
| |
Phosphates
| |
Other operating income
| |
52
| | |
—
| | |
0.15
| |
|
Change in Canadian tax regulations
| |
Potash
| |
Cost of goods sold
| |
(10
|
)
| |
(17
|
)
| |
(0.08
|
)
|
|
Asset write-off
| |
Phosphates
| |
Other operating expense
| |
(3
|
)
| |
—
|
| |
(0.01
|
)
|
|
Total Notable Items
| | | | | |
$
|
91
|
| |
$
|
(12
|
)
| |
$
|
0.22
|
|
| | | | | | | | | | | | | | | |
|
Condensed Consolidated Statements of Earnings |
(in millions, except per share amounts) |
|
| |
| |
The Mosaic Company |
|
|
| (unaudited) |
| | | |
|
| | Three months ended | | Nine months ended |
| | September 30, | | September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Net sales
| |
$
|
2,928.1
| | |
$
|
1,984.8
| | |
$
|
7,066.8
| | |
$
|
5,317.5
| |
|
Cost of goods sold
| |
2,432.6
|
| |
1,744.0
|
| |
6,034.6
|
| |
4,754.8
|
|
|
Gross margin
| |
495.5
| | |
240.8
| | |
1,032.2
| | |
562.7
| |
|
Selling, general and administrative expenses
| |
78.5
| | |
66.1
| | |
251.4
| | |
218.2
| |
|
Other operating expense (income)
| |
23.7
|
| |
(39.2
|
)
| |
110.5
|
| |
5.9
|
|
|
Operating earnings
| |
393.3
| | |
213.9
| | |
670.3
| | |
338.6
| |
|
Interest expense, net
| |
(40.9
|
)
| |
(36.2
|
)
| |
(135.4
|
)
| |
(98.4
|
)
|
|
Foreign currency transaction (loss) gain
| |
(2.2
|
)
| |
58.6
| | |
(113.1
|
)
| |
76.6
| |
|
Other (expense) income
| |
(7.6
|
)
| |
1.1
|
| |
(15.6
|
)
| |
(2.0
|
)
|
|
Earnings from consolidated companies before income taxes
| |
342.6
| | |
237.4
| | |
406.2
| | |
314.8
| |
|
Provision for income taxes
| |
90.6
|
| |
17.6
|
| |
44.4
|
| |
4.7
|
|
|
Earnings from consolidated companies
| |
252.0
| | |
219.8
| | |
361.8
| | |
310.1
| |
|
Equity in net (loss) earnings of nonconsolidated companies
| |
(2.3
|
)
| |
9.8
|
| |
(3.9
|
)
| |
15.5
|
|
|
Net earnings including noncontrolling interests
| |
249.7
| | |
229.6
| | |
357.9
| | |
325.6
| |
|
Less: Net income attributable to noncontrolling interests
| |
2.2
|
| |
2.1
|
| |
0.2
|
| |
1.7
|
|
|
Net earnings attributable to Mosaic
| |
$
|
247.5
|
| |
$
|
227.5
|
| |
$
|
357.7
|
| |
$
|
323.9
|
|
|
Diluted net earnings per share attributable to Mosaic
| |
$
|
0.64
|
| |
$
|
0.65
|
| |
$
|
0.93
|
| |
$
|
0.92
|
|
|
Diluted weighted average number of shares outstanding
| |
387.5
| | |
352.2
| | |
386.1
| | |
351.9
| |
| | | | | | | | | | | |
|
Condensed Consolidated Balance Sheets |
(in millions, except per share amounts) |
|
| |
| |
The Mosaic Company |
|
|
| (unaudited) |
| | | |
|
| | September 30, | | December 31, |
| | 2018 |
| 2017 |
| Assets | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
1,029.9
| | |
$
|
2,153.5
| |
|
Receivables, net
| |
834.9
| | |
642.6
| |
|
Inventories
| |
1,957.1
| | |
1,547.2
| |
|
Other current assets
| |
356.1
|
| |
273.2
|
|
|
Total current assets
| |
4,178.0
| | |
4,616.5
| |
|
Property, plant and equipment, net
| |
11,891.6
| | |
9,711.7
| |
|
Investments in nonconsolidated companies
| |
828.5
| | |
1,089.5
| |
| Goodwill | |
1,753.0
| | |
1,693.6
| |
|
Deferred income taxes
| |
307.7
| | |
254.6
| |
|
Other assets
| |
1,455.9
|
| |
1,267.5
|
|
|
Total assets
| |
$
|
20,414.7
|
| |
$
|
18,633.4
|
|
| Liabilities and Equity | | | | |
|
Current liabilities:
| | | | |
|
Short-term debt
| |
$
|
25.7
| | |
$
|
6.1
| |
|
Current maturities of long-term debt
| |
61.2
| | |
343.5
| |
|
Structured accounts payable arrangements
| |
504.1
| | |
386.2
| |
|
Accounts payable
| |
839.3
| | |
540.9
| |
|
Accrued liabilities
| |
1,072.1
|
| |
754.4
|
|
|
Total current liabilities
| |
2,502.4
| | |
2,031.1
| |
|
Long-term debt, less current maturities
| |
4,523.1
| | |
4,878.1
| |
|
Deferred income taxes
| |
1,195.3
| | |
1,117.3
| |
|
Other noncurrent liabilities
| |
1,540.6
| | |
967.8
| |
|
Equity:
| | | | |
|
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none
issued and outstanding as of September 30, 2018 and December 31, 2017 | |
—
| | |
—
| |
|
Common Stock, $0.01 par value, 1,000,000,000 shares authorized,
389,242,360 shares issued and 385,470,085 shares outstanding as of
September 30, 2018, 388,998,498 shares issued and 351,049,649 shares
outstanding as of December 31, 2017 | |
3.8
| | |
3.5
| |
|
Capital in excess of par value
| |
983.8
| | |
44.5
| |
|
Retained earnings
| |
10,971.7
| | |
10,631.1
| |
|
Accumulated other comprehensive loss
| |
(1,517.7
|
)
| |
(1,061.6
|
)
|
|
Total Mosaic stockholders' equity
| |
10,441.6
| | |
9,617.5
| |
|
Noncontrolling interests
| |
211.7
|
| |
21.6
|
|
|
Total equity
| |
10,653.3
|
| |
9,639.1
|
|
|
Total liabilities and equity
| |
$
|
20,414.7
|
| |
$
|
18,633.4
|
|
| | | | | | | |
|
Condensed Consolidated Statements of Cash Flows |
(in millions, except per share amounts) |
|
| | | |
The Mosaic Company |
|
|
| (unaudited) |
| | | |
|
| | Three months ended | | Nine months ended |
| | September 30, | | September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
| Cash Flows from Operating Activities: | | | | |
|
Net cash provided by operating activities
| |
$
|
523.8
| | |
$
|
135.5
| | |
$
|
1,259.8
| | |
$
|
524.3
| |
| Cash Flows from Investing Activities: | | | | | | | | |
|
Capital expenditures
| |
(241.0
|
)
| |
(197.6
|
)
| |
(665.4
|
)
| |
(589.9
|
)
|
|
Purchases of available-for-sale securities - restricted
| |
(228.5
|
)
| |
(280.0
|
)
| |
(486.1
|
)
| |
(1,546.3
|
)
|
|
Proceeds from sale of available-for-sale securities - restricted
| |
221.1
| | |
277.6
| | |
470.5
| | |
1,533.7
| |
|
Investments in nonconsolidated companies
| |
—
| | |
(62.5
|
)
| |
—
| | |
(62.5
|
)
|
|
Investments in consolidated affiliate
| |
—
| | |
(8.8
|
)
| |
(3.6
|
)
| |
(47.7
|
)
|
|
Proceeds from sale of fixed assets
| |
9.3
| | |
69.1
| | |
9.3
| | |
69.1
| |
|
Acquisition, net of cash acquired
| |
—
| | |
—
| | |
(985.3
|
)
| |
—
| |
|
Other
| |
(4.7
|
)
| |
(18.5
|
)
| |
(0.3
|
)
| |
0.3
|
|
|
Net cash used in investing activities
| |
(243.8
|
)
| |
(220.7
|
)
| |
(1,660.9
|
)
| |
(643.3
|
)
|
| Cash Flows from Financing Activities: | | | | | | | | |
|
Payments of short-term debt
| |
(31.2
|
)
| |
(258.0
|
)
| |
(120.1
|
)
| |
(523.2
|
)
|
|
Proceeds from issuance of short-term debt
| |
38.0
| | |
264.7
| | |
145.2
| | |
608.1
| |
|
Payments of structured accounts payable arrangements
| |
(144.2
|
)
| |
(83.0
|
)
| |
(582.4
|
)
| |
(238.8
|
)
|
|
Proceeds from structured accounts payable arrangements
| |
259.2
| | |
226.4
| | |
590.2
| | |
473.8
| |
|
Payments of long-term debt
| |
(408.5
|
)
| |
(2.8
|
)
| |
(722.4
|
)
| |
(6.2
|
)
|
|
Proceeds from issuance of long-term debt
| |
0.1
| | |
—
| | |
39.3
| | |
1.5
| |
|
Cash dividends paid
| |
(9.7
|
)
| |
(52.7
|
)
| |
(28.9
|
)
| |
(201.8
|
)
|
|
Other
| |
(0.1
|
)
| |
(0.3
|
)
| |
(0.5
|
)
| |
(2.2
|
)
|
|
Net cash (used in) provided by financing activities
| |
(296.4
|
)
| |
94.3
| | |
(679.6
|
)
| |
111.2
| |
|
Effect of exchange rate changes on cash
| |
(11.2
|
)
| |
18.3
|
| |
(62.8
|
)
| |
22.8
|
|
|
Net change in cash, cash equivalents and restricted cash
| |
(27.6
|
)
| |
27.4
| | |
(1,143.5
|
)
| |
15.0
| |
|
Cash, cash equivalents and restricted cash - beginning of period
| |
1,078.5
|
| |
699.0
|
| |
2,194.4
|
| |
711.4
|
|
|
Cash, cash equivalents and restricted cash - end of period
| |
$
|
1,050.9
|
| |
$
|
726.4
|
| |
$
|
1,050.9
|
| |
$
|
726.4
|
|
| |
| | | | | |
| Reconciliation of cash, cash equivalents and restricted cash
reported within the unaudited condensed consolidated balance sheets
to the unaudited statements of cash flows: | | | | | | | |
|
Cash and cash equivalents
| | | | |
$
|
1,029.9
| | |
$
|
685.7
| |
|
Restricted cash in other current assets
| | | | |
8.2
| | |
7.5
| |
|
Restricted cash in other assets
| | | | |
12.8
|
| |
33.2
|
|
|
Total cash, cash equivalents and restricted cash shown in the
unaudited statement of cash flows
| | | | |
$
|
1,050.9
|
| |
$
|
726.4
|
|
| | | | | | | | | | |
|
Earnings Per Share Calculation |
|
| |
| |
| | Three months ended | | Nine months ended |
| | September 30, | | September 30, |
| | 2018 |
| 2017 | | 2018 |
| 2017 |
|
Net earnings attributable to Mosaic
| |
$
|
247.5
| | |
$
|
227.5
| | |
$
|
357.7
| | |
$
|
323.9
|
|
Basic weighted average number of shares outstanding
| |
385.5
| | |
351.1
| | |
384.5
| | |
350.9
|
|
Dilutive impact of share-based awards
| |
2.0
|
| |
1.1
|
| |
1.6
|
| |
1.0
|
|
Diluted weighted average number of shares outstanding
| |
387.5
|
| |
352.2
|
| |
386.1
|
| |
351.9
|
|
Basic net earnings per share attributable to Mosaic
| |
$
|
0.64
| | |
$
|
0.65
| | |
$
|
0.93
| | |
$
|
0.92
|
|
Diluted net earnings per share attributable to Mosaic
| |
$
|
0.64
| | |
$
|
0.65
| | |
$
|
0.93
| | |
$
|
0.92
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20181105005933/en/
The Mosaic Company
Media
Ben Pratt,
763-577-6102
benjamin.pratt@mosaicco.com
or
Investors
Laura
Gagnon, 763-577-8213
investor@mosaicco.com
Source: The Mosaic Company